Free Motion in Limine - District Court of Colorado - Colorado

Case 1:03-cv-01973-PSF-MJW

Document 167-3

Filed 10/17/2005

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EXHIBIT B

EXHIBIT B

Case 1:03-cv-01973-PSF-MJW

Document 167-3

Filed 10/17/2005

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 03-F-1973(MJW) J.E.H. KNUTSON, Plaintiff, v. THE WALKER GROUP, INC., Defendant. DEPOSITION OF J. EUGENE HAROLD KNUTSON March 25, 2004

APPEARANCES FOR THE PLAINTIFF: COLIN A. WALKER, ESQ. Fairfield and Woods, P.C. Wells Fargo Center Suite 2400 1700 Lincoln Street Denver, Colorado 80203 RICHARD S. GOTTLIEB, ESQ. (via telephone) Kilpatrick Stockton LLP 1001 West Fourth Street Winston-Salem, N.C. 27101 and JOSHUA MAXIMON, ESQ. The Maximon Law Firm, LLC 12202 Airport Way Suite 170 Broomfield, Colorado 80021 ALSO PRESENT: MARK WILSON (via telephone)

FOR THE DEFENDANT:

Bruno Reporting Company 303 831-1667

0ab4d527-8c5d-11d8-961b-bef50467a376

Case 1:03-cv-01973-PSF-MJW

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Q.

And you have a lot of financial

obligation out there? A. Q. headquarters? A. The bulk of our people were engineering A lot of payroll. Right. Why would Kansas City be the

and installation staff obtained from Sprint and Sprint North Supply and Sprint PCS, and they didn't want to move. Q. point? A. company. Q. Okay. So at what point did it become At that point, I was president of the Okay. And what was your title at that

clear that sales were not meeting expectations from First Layer's perspective? A. Q. I believe it was January of 2001. So pretty soon after the loan? It had

been a few months? A. Q. About three, four months. Okay. At that point, were you

pursuing -- you said before you were pursuing VC funding? A. Q. Yes. What other forms of funding were you

Bruno Reporting Company 303 831-1667

0ab4d527-8c5d-11d8-961b-bef50467a376

Case 1:03-cv-01973-PSF-MJW

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Filed 10/17/2005

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pursuing? A. pursuing. That was most of the funding we were

You had asked earlier if we were looking at

other forms, and I indicated that we had talked to Silicon Valley Bank about some receivables-type funding. Those were the two. Q. When did Factor Partners become --

well, when was it formed? A. Q. A. Exact date, I'm not sure. Okay. What time period?

It would have been sometime that early

spring -- I mean probably January, 2001. Q. A. Q. A. Q. Was it conceived to provide funding? Yes. Who formed Factor Partners? Jeff Sauter and myself. Did it factor receivables for any other

entity than First Layer? A. Q. A. No, it did not. Is it still in business? Well, there are two outstanding Walker

invoices, but otherwise, no. MR. GOTTLIEB: Okay. Mr. Court

Reporter, would you pull the document in file Number 9 and mark it Exhibit Number 9?

Bruno Reporting Company 303 831-1667

0ab4d527-8c5d-11d8-961b-bef50467a376