B. Sept. 2000 - Trans World Offers to Purchase My Assets

B. Trans World Offers to Purchase My Assets

78. Previously, in September 2000, in a meeting at the corporate headquarters of Trans World in Albany, New York, which included Trans World Chairman and President Robert Higgins and Trans World Chief Financial Officer John Sullivan, and an attorney from Boies Schiller, Michael Endler, I provided to Trans World my presentation of the general features of my proprietary Aimster method, including its “sharing with buddies” concept, but did not disclose confidential information necessary to enable or implement my method.

79. During the meeting, Robert Higgins introduced me to Bill Duker.

80. After the meeting, in a private discussion with me, Robert Higgins proposed to purchase an interest in my proprietary Aimster method, and told me that he would ask Bill Duker to represent him in the purchase.

81. I promised Mr. Higgins to meet with Bill Duker to consider his proposed purchase.

82. Shortly thereafter, Bill Duker contacted me and asked me to meet him at the Steuben Club in Albany, New York, a private club where Bill Duker said he was a member.

83. At the meeting, Bill Duker described his role as an agent for Robert Higgins who set up legal entities and transactions drawing on his legal experience and analyzing Trans World’s special needs, and received a commission as a percentage of the profit of the entities. Bill Duker admitted that at Robert Higgins direction he utilized such “Special Purpose” entities for the benefit of Robert Higgins, and specifically described “Media Logic,” an advertising agency controlled by Robert Higgins.

84. Trans World’s special purpose entities such as Media Logic are paid by Labels and Studios, who are primarily the major music and movie distributors or their corporate affiliates, in return for promotion of the Labels’ and Studios’ CDs and DVDs in Trans World’s stores.

85. I proposed that my proprietary Aimster method could maximize the value of in-store and online promotions, by “targeting” the discounted price that any given Internet customer was willing to pay, so that the discounted price could be advertised or promoted as a “special” low price to that given customer.

86. Bill Duker represented to me that Robert Higgins authorized him to set up a special purpose entity, similar to Media Logic, under the control of Robert Higgins, to which Robert Higgins proposed that I license my proprietary Aimster method.

87. I conveyed to Robert Higgins through Bill Duker my promise that I would consent to such a transaction, provided that I could share in the control of and profit from my proprietary Aimster method. As consideration, I promised that I would also share in any loss arising from the development of my proprietary Aimster method.

88. Bill Duker then advised me that I engage Boies-Schiller as my lawyers. Bill Duker also promised me that he would contact David Boies on my behalf.

89. It was as a result of Bill Duker’s promise to me in September 2000 that David Boies sent his letter to me dated November 15, 2000.