IBM Reply in Support of Motion to Compel Plaintiff's Responses to Defendants Discovery Requests

UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA

QSGI, INC.,

Plaintiff,v.

IBM GLOBAL FINANCING andINTERNATIONAL BUSINESSMACHINES CORPORATION,

Defendants.

§§§§§§§§§

Case No. 9:11-cv-80880-KLR

REDACTED1

REPLY IN SUPPORT OF MOTION TO COMPEL PLAINTIFF’SRESPONSES TO DEFENDANTS’ DISCOVERY REQUESTS

1Defendants file this redacted Reply because the Reply quotes from the March 12, 2012 rough transcript of

the deposition of Plaintiff’s corporate representative, Marc Sherman. Defendants intend to file promptlytheir motion for leave to file under seal this Reply and the Sherman transcript excerpts.

Case 9:11-cv-80880-KLR Document 44 Entered on FLSD Docket 03/12/2012 of 13

Pursuant to Rules 33, 34 and 37 of the Federal Rules of Civil Procedure and Local

Rule 26.1(h), International Business Machines Corporation (“IBM”) and IBM Global

Financing (collectively, “Defendants” or “IBM”) submit this reply memorandum in

support of their motion to compel QSGI, Inc. (“QSGI” or “Plaintiff”) to respond to

Defendants’ First Request for Production of Documents and Defendants’ First Set of

Interrogatories to Plaintiff (collectively, “Discovery Requests”).

Background

IBM’s motion addresses QSGI’s admitted failure to provide responses to IBM’s

document requests and interrogatories (the “Discovery Requests”), which were served

months ago. Rather than addressing that issue, QSGI offers empty assurances that

someday it will actually produce some of its documents—the same sorts of assurances

that IBM has been hearing for months now. QSGI offers no excuse for its failure to

provide the discovery responses required by Rules 33 and 34 and no guidance to the

Court or IBM as to when, if ever, it intends to respond.

QSGI brought this suit, and it must meet its discovery obligations, including

responding to IBM’s Discovery Requests and producing relevant documents. Given the

upcoming close of fact and expert discovery (July 29, 2012), IBM respectfully requests

that this Court compel QSGI to respond immediately.


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Relevant Chronology

IBM sets forth for the Court’s reference a chronology of certain relevant facts

relating to the discovery that IBM has sought:

Date Event

Nov. 2007 QSGI publicly described purportedly “actionable” anticompetitivebusiness practice by an OEM, IBM, in a securities filing.2

Dec. 18, 2009 The Securities and Exchange Commission served Marc Sherman, QSGI’sCEO, with a subpoena (“Subpoena”) seeking, inter alia, documentscentral to this present suit and indispensable to IBM’s defense, including“[a]ll documents concerning the purported anti-competitive practices by aleading OEM [IBM] . . . ”.3

Aug. 4, 2011 QSGI brought this action against IBM.

Oct. 21, 2011 QSGI’s counsel represented to IBM that QSGI has very few documentsand that many of QSGI’s documents no longer exist.4

Nov. 4, 2011 The parties agreed to make a good faith effort to begin producingdocuments no later than January 1, 2012.5

Nov. 10, 2011 This Court issued its Scheduling Order,6 which the parties agreedincorporated their agreement to begin fact depositions on March 15,2012, and to exchange opening and rebuttal expert reports on June 12,and July 12, 2012, respectively.7

Nov. 11, 2011 IBM served QSGI with Document Requests, seeking, among otherdocuments, categories of documents previously requested by the SEC inits Subpoena.8

2QSGI, Inc., Current Report (Form 8-K) (Nov. 14, 2007), Ex. 99.1, Mar. 12, 2012 Besvinick Decl. (“Mar.

Besvinick Decl.”) Ex. A.

3In re QSGI, Inc., SEC Subpoena Served on QSGI, Inc., Bankr. Pet. No. 09-23658, Doc. 211-1

(“Subpoena”), Mar. Besvinick Decl. Ex. B; id. ¶ L.

4Mar. Besvinick Decl. ¶ 6.

5Jt. Sched. Rpt.¶ L(vi), Nov. 4, 2011, ECF No. 27.

6Scheduling Order, Nov. 10, 2011, ECF No. 29.


8Feb. 15, 2012 Besvinick Decl. (“Feb. Besvinick Decl.”), Ex. A. The Subpoena overlaps in substantial

part with IBM’s Document Requests. For example, both request documents concerning: IBM’s allegedanticompetitive practices and the financial impact of these practices on QSGI (compare Subpoena ¶¶ L-Mwith Doc. Reqs. ¶¶ 13-15, 18); QSGI’s customers and sales to customers (compare Subpoena ¶ Q with Doc.Reqs. ¶¶ 6-7); QSGI’s inventory, including any change in its value (compare Subpoena ¶¶ J, K, R with


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Date Event

Dec. 5, 2011 QSGI requested an extension to respond to IBM’s Document Requestsfrom December 12, 2011 until January 11, 2012. IBM agreed.9

Dec. 6, 2011 IBM served QSGI with Interrogatories.10

Dec. 2011 QSGI’s counsel purportedly learned that QSGI’s documents are in thepossession of QSGI’s SEC counsel, McDonald Hopkins LLC.

Jan. 5, 2012 QSGI requested an extension until January 17, 2012 to respond to IBM’sDiscovery Requests. IBM agreed.11

Jan. 17, 2012 QSGI failed to respond to the Discovery Requests.12

Jan. 19, 2012 IBM requested that QSGI respond by January 24, 2012 to the DiscoveryRequests.13

Jan. 24, 2012 With no notice, QSGI again failed to respond to the DiscoveryRequests.14

Jan. 27, 2012 QSGI produced 789 documents—its only production to date. QSGIinformed IBM of the existence of 400 boxes of documents stored in awarehouse in New Jersey, which it offered to make available. QSGIagreed to provide by February 3, 2011, a date it selected, the overdueresponses to the Discovery Requests.15

Feb. 2, 2012 IBM asked QSGI by letter to provide a description of the contents of the400 boxes of documents.16

Feb. 3, 2012 QSGI again failed to provide responses to the Discovery Requests andfailed to respond to IBM until several days later.17

Feb. 8, 2012 IBM asked QSGI to provide a date certain when IBM could access the400 boxes of documents in the warehouse. IBM also asked QSGI to

Doc. Reqs. ¶¶ 5, 10, 14, 18); and QSGI’s finances and accounting practices (compare Subpoena ¶¶ G-Hwith Doc. Reqs. ¶ 19).

9Feb. Besvinick Decl. ¶ 4.

10Id. Ex. B.

11Id. ¶¶ 5-6.

12Id. ¶ 7.

13Id. ¶ 8.

14Id. ¶ 9.

15Id. ¶¶ 10-12.

16Id. ¶ 12.

17Id. ¶ 13.


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Date Event

supply responses to the Discovery Requests by February 13, 2012, or elseDefendants would be forced to seek relief from this Court.18

Feb. 13, 2012 QSGI, without contacting IBM, failed to provide responses to theDiscovery Requests.19

Feb. 15, 2012 QSGI did not return IBM’s calls, prompting IBM to file its Motion.20

Feb. 21, 2012 IBM again requested that QSGI provide a date certain for IBM’s reviewof the 400 boxes of documents.21

Feb. 22, 2012 QSGI informed IBM for the first time that IBM cannot review the 400boxes of documents because those documents were given to the SEC.22

Feb. 23, 2012 IBM requested that QSGI make a witness available for a Rule 30(b)(6)deposition on document retention on March 9, 12 or 13, 2012. IBMreiterated that request on February 28, 2012.23

Mar. 5, 2012 Having received no response from QSGI at all, IBM noticed the Rule30(b)(6) deposition for March 12.24

Mar. 12, 2012

25

26

18Id. ¶ 15.

19Id. ¶ 16.

20Id. ¶¶ 15-16.


22Id.

23Id. ¶¶ 12-13.

24Id. ¶ 14.

25

26


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Argument

I. QSGI DOES NOT CONTEST ITS FAILURE TO RESPOND.

QSGI does not dispute that it failed to provide responses to IBM’s Document

Requests and Interrogatories, which were served months ago. QSGI’s Response fails

even to mention the long overdue interrogatory responses. With respect to IBM’s

Document Requests, QSGI does not contest that it failed to provide responses, instead

suggesting that a phone call to counsel purportedly offering to “produce all responsive

documents” meets QSGI’s discovery obligations.

As an initial matter, QSGI’s version of the facts is misleading. Counsel for QSGI

has never communicated a plan to produce all documents responsive to specific

document requests.27 Indeed, it has been difficult to get any sort of response, by phone,

email or any other means, from QSGI’s counsel.28

Moreover, the production of documents (which would be helpful were it to occur)

is a separate matter from, and would not satisfy, QSGI’s obligation pursuant to Rules 33

and 34 to respond to interrogatories and document requests in writing. Fed. R. Civ. P.

33(b)(3) (“Each interrogatory must, to the extent it is not objected to, be answered

separately and fully in writing under oath.”); Fed. R. Civ. P. 34(b)(2)(A) (“The party to

whom the request is directed must respond in writing within 30 days after being


28QSGI mischaracterizes the communications between the parties. The reality is that IBM has sent

numerous letters concerning issues with QSGI’s fact discovery, to which QSGI has simply not responded.(Mar. Besvinick Decl. ¶ 17.) To the extent that QSGI communicates with IBM at all, it is typically byphone and often several days (and several reminders) after missing another deadline. (Id. ¶ 18.) QSGIoffers no declaration or documents to support its counterfactual characterizations. Indeed, Case A. Dam,with whom IBM has never dealt and who, as far as IBM can tell, has no personal knowledge of thecommunications between QSGI and IBM, is sole signatory on QSGI’s Response. (Id. ¶ 16.) The Courtshould not credit QSGI’s unsupported mischaracterizations. See Kulhawik v. Holder, 571 F.3d 296, 298(2d Cir. 2009) (“An attorney’s unsworn statements in a brief are not evidence.”)


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served.”).

Because QSGI does not contest its failure to meet (repeatedly extended) discovery

deadlines, QSGI should be compelled to provide prompt responses to the Discovery

Requests. See Kramer Scientific Lab. Prods. Corp. v. Golf Med. Corp., No. 11–61610–

CIV, 2011 WL 5914255, at *2 (S.D. Fla. Nov. 28, 2011) (compelling overdue discovery

responses where the party from whom discovery was sought provided no justification for

missed discovery deadlines).29

II. QSGI’S SELF-INFLICTED DIFFICULTIES DO NOT EXCUSE ITSFAILURE TO RESPOND.

QSGI contends that “unexpected circumstances” should excuse its interminable

delays in providing discovery. Specifically, QSGI points to its failure to preserve highly

relevant documents before providing them to the SEC and to its counsel’s purportedly

belated understanding that “QSGI’s documents were in the possession, custody and

control of QSGI’s counsel, McDonald Hopkins, LLC”. (Response ¶ 4.) These problems

are entirely of QSGI’s own making and provide no excuse for QSGI’s failure to respond

to IBM’s Discovery Requests.

With respect to QSGI’s representation that certain QSGI documents are in the

sole possession of the SEC, this circumstance is due entirely to QSGI’s improper failure

to preserve these documents. QSGI publicly stated in 2007 that it had an “actionable”

claim against IBM. (Supra p. 2.) It was incumbent upon QSGI at that time to preserve

29QSGI claims in its Response that the Document Requests are overly broad. IBM’s Document Requests

are tailored to seek crucial categories of documents that it needs to prepare its defense, such as thepurported change in policy and its impact on QSGI. In any event, QSGI has never identified any particularrequest for documents or interrogatory as overly broad or requested that IBM narrow a document request orinterrogatory. (Mar. Besvinick Decl. ¶ 15.) Having failed to respond to IBM’s Discovery Requests, anyobjection QSGI could have—including to breadth—should be deemed waived. See Kramer Scientific Lab.Prods. Corp. v. Golf Med. Corp., No. 11–61610–CIV, 2011 WL 6130920, at *3 (S.D. Fla. Dec. 8, 2011)(ordering complete discovery responses after untimely objections for overbreadth were made).


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and retain any documents relevant to that purported claim. QSGI failed to do so.

Instead, IBM was informed just recently (over three months after serving its Discovery

Requests) that the SEC possesses hundreds of boxes of QSGI’s original documents and

that those boxes are not accessible to QSGI’s counsel. (Supra p. 4.) QSGI has provided

no information as to when, if ever, the SEC will return these documents.

There is no question that these documents are relevant. The Subpoena in response

to which these documents were produced sought, among other categories of documents,

those relating to QSGI’s claim in this suit. (Supra p. 2.) That QSGI’s counsel is

attempting to obtain these documents from the SEC only supports the relevance of these

documents. IBM is severely prejudiced by its inability to access these documents, and

QSGI should not be allowed to seek refuge in the fact that it effectively disposed of

hundreds of boxes of relevant documents.30

QSGI’s representation that certain QSGI documents were in the possession and

control of QSGI’s SEC counsel is irrelevant and misleading. Documents in the

possession of QSGI’s SEC counsel are within QSGI’s possession, custody and control for

purposes of the instant lawsuit. Jans v. The GAP Stores, Inc., No. 6:05-cv-1534-Orl-

31JGG, 2006 WL 2691800 (M.D. Fla. Sept. 20, 2006) (ordering documents within the

possession of a party’s counsel produced because those documents are within control of

the party). Moreover, QSGI’s counsel’s claim that he learned only recently (in February

30See E-Terra, LLC v. Sars Corp., No. 3:08-CV-123, 2010 WL 431965, at *2 (D. Alaska Feb. 3, 2010)

(noting that plaintiff may have a claim for spoliation if certain evidence was not ultimately recovered froma non-party, where defendant transferred the “only copy or copies” of this evidence to the non-party); In reNTL, Inc. Sec. Litig., 244 F.R.D. 179, 197 (S.D.N.Y. 2007), aff’d, No. 02-Civ-7377, 2007 WL 1518632(S.D.N.Y. May 17, 2007) (noting that a party “failed in its obligation to preserve relevant material, and,thus, spoliated evidence (assuming the other requirements for spoliation [were] met)”, if it transferred“documents and ESI” that it had an obligation to preserve to a non-party “without itself preserving (orinsuring that [the non-party] would preserve) such information for possible production in [the] litigation”).


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2012 after numerous inquiries by IBM about on-site inspection, supra pp. 3-4) that these

documents had been provided to the SEC is inexcusable. Counsel was appointed by the

Bankruptcy Court to bring this case over a year ago. Yet, even months after filing suit,

QSGI’s counsel (incorrectly) represented that QSGI had virtually no documents. (Supra

p. 2.) Before filing suit—and at least shortly thereafter—counsel should have undertaken

efforts to determine the various repositories of relevant QSGI documents.

QSGI’s pattern of ignoring its discovery obligations in this litigation is altogether

unacceptable. Throughout December, January and February, QSGI repeatedly asked for

and received extensions of deadlines to respond to IBM’s Discovery Requests, and then

simply ignored those deadlines. (Supra pp. 3-4 (describing QSGI’s first extension

request on Dec. 5, 2011, and missed deadlines on Jan. 17, Jan. 24, Feb. 3, and Feb. 13,

2012).) Even in the face of IBM’s motion to compel, QSGI has not provided responses

to the Discovery Requests or said when it would do so, has largely failed to produce its

documents, and informed IBM and the Court that it may never be able to produce a huge

portion of its documents because it neglected to retain custody of them.

III. QSGI’S UNCONTESTED FAILURE TO RESPOND IS INCONSISTENTWITH ITS OBLIGATION TO PROSECUTE ITS LAWSUIT.

QSGI chose to bring this antitrust suit against IBM. QSGI should have been

prepared to prosecute its case in accordance with the schedule set in the Court’s order and

the deadlines for discovery responses rather than repeatedly ignoring discovery deadlines.

See King v. Pacaro, No. 07-14148-CV, 2008 WL 2795934, at *1 (S.D. Fla. July 18,

2008) (noting that when a plaintiff initiates a suit, it must be prepared to prosecute the

case, including by complying with discovery orders); see also, e.g., Archer v. Air

Jamaica, 268 F.R.D. 401, 403, 405 (S.D. Fla. 2010) (adopting Magistrate’s report and


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recommendation to dismiss plaintiffs’ case where plaintiffs’ failure to provide discovery

responses required defendant “to spend almost four months of the discovery period trying

to obtain . . . discovery responses” and prejudiced defendant’s ability “to schedule

depositions or take further discovery”). Had QSGI, consistent with its duty,31 preserved

relevant documents in 2007 when it asserted it had an actionable claim against IBM,

QSGI would have been in a position to respond to discovery requests promptly. Instead,

in the intervening time, QSGI provided relevant original documents (without retaining

duplicates) to the SEC, effectively rendering them inaccessible.32 QSGI’s discovery

failures not only hamper IBM’s ability to defend itself in this litigation but also are

entirely inconsistent with QSGI’s obligation to prosecute this lawsuit.33

Conclusion

For the reasons stated above and in IBM’s memorandum in support of its motion

to compel discovery requests, QSGI should be ordered to answer IBM’s Discovery

Requests without objections.

31See E-Terra, 2010 WL 431965, at *3; In re NTL, 244 F.R.D. at 197.

32QSGI also collected and produced documents relevant to this case in response to discovery in other

actions, including at least John R. Riconda’s September 24, 2009, Notice of Examination Duces Tecum,served on QSGI during its bankruptcy proceedings. (See Notice of Bankr. Rule 2004 Examination DucesTecum, Bankr. Pet. No 09-23658, ECF No. 135, Mar. Besvinick Decl. Ex. C.) Notably, that subpoena alsooverlaps in substantial part with IBM’s Document Requests, as both request documents concerning:QSGI’s inventory and assets, corporate structure, finances and accounting practices and business plans,forecasts and projections.

33Archer, 268 F.R.D. at 401, 403, 405; King, 2008 WL 2795934, at *1.


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Dated: March 12, 2012

Respectfully submitted,

/s/ Laura BesvinickLaura BesvinickFlorida Bar No. 391158HOGAN LOVELLS US LLP1111 Brickell AvenueSuite 1900Miami, FL 33131Telephone: 305-459-6500Facsimile: [email protected]

Evan R. Chesler*Richard J. Stark*Teena-Ann V. Sankoorikal*CRAVATH, SWAINE & MOORELLPWorldwide Plaza825 Eighth AvenueNew York, NY 10019Telephone: 212-474-1000Facsimile: [email protected]@[email protected]

Ty Cobb*Eric J. Stock*HOGAN LOVELLS US LLPColumbia Square555 Thirteenth Street, NWWashington, DC 20004Telephone: 202-637-5600Facsimile: [email protected]@Hoganlovells.com*Admitted Pro Hac Vice

Counsel for Defendants IBM GlobalFinancing and International BusinessMachines Corporation


CERTIFICATE OF SERVICE

I HEREBY CERTIFY that, on this 12th day of March 2012, I

electronically filed the foregoing document with the Clerk of the Court using CM/ECF. I

also certify that the foregoing document is being served this day on all counsel of record

or pro se parties identified on the attached Service List in the manner specified, either via

transmission of Notices of Electronic Filing generated by CM/ECF or in some other

authorized manner for those counsel or parties who are not authorized to receive

electronically Notices of Electronic Filing.

/s/ Laura BesvinickLaura Besvinick


2

QSGI, INC. SERVICE LIST

Juan Pablo Bauta, IIFerraro Law Firm

4000 Ponce de Leon BlvdSuite 700

Miami, FL 33146Phone: 305-375-0111

Fax: 305-379-6222

Case A. DamFerraro Law Firm

4000 Ponce de Leon BlvdSuite 700

Miami, FL 33146Phone: 305-375-0111

Fax: 305-379-6222Email: [email protected]


UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

QSGI, INC., § §

Plaintiff, 2 V

V.

IBM GLOBAL FINANCING and INTERNATIONAL BUSINESS MACHINES CORPORATION,

Defendants.

§ Case No. 9:11-cv-80880-KLR § § § § §

DECLARATION OF LAURA BESVINICK

LAURA BESVINICK, declares as follows:

1. I am a member of the law firm of Hogan Lovells US LLP and counsel to

defendants IBM Global Financing and International Business Machines Corporation

(collectively, "Defendants" or "IBM") in the above captioned action. I submit this

declaration in support of Defendants' Reply in Support of its Motion to Compel Plaintiff s

Responses to Defendants' Discovery Requests.

2. Attached as Exhibit A is a true and correct copy of QSGI, Inc.'s Current

Report (Form 8-K), filed with the Securities and Exchange Commission ("SEC") on

November 14, 2007.

3. Attached as Exhibit B is a true and correct copy of the SEC Subpoena served

on QSGI, filed in Bankr. Pet. No. 09-23658 as ECF No. 211-1 on February 2, 2010.

4. Attached as Exhibit C is a true and correct copy of the Notice of Bankruptcy

Rule 2004 Examination Duces Tecum served on QSGI by John R. Riconda, filed in Bankr.

Pet. No. 09-23658 as ECF No. 135 on September 24, 2009.

5. IBM requested and QSGI agreed to schedule a Rule 30(b)(6) deposition to

take place prior to March 15, 2012, regarding QSGI's document retention and preservation.

Case 9:11-cv-80880-KLR Document 44-1 Entered on FLSD Docket 03/12/2012 Page 1 of 4

6. In the parties' October 21, 2011 scheduling conference, QSGI's counsel

represented that QSGI had very few documents and that many of QSGI's documents no

longer existed.

7. On December 13, 2011, the parties agreed that the dates contained in the Joint

Scheduling Report that were not changed by the Court's Scheduling Order were incorporated

into the Scheduling Order. Specifically, fact depositions would begin on March 15, 2012,

expert reports would be exchanged on June 12, 2012, and rebuttal expert reports would be

exchanged on July 12, 2012.

8. On December 16, 2011, IBM served a Rule 30(b)(6) deposition notice

regarding QSGI's document retention and preservation and invited QSGI to identify a

convenient deposition date in early January 2012. QSGI, however, never responded.

9. On January 27, 2012, QSGI represented that 400 boxes of QSGI documents

were stored in a warehouse in New Jersey and that QSGI would make these documents

available for IBM's review.

10. On February 8, 2012, IBM requested that QSGI provide by February 13,

2012, a date certain for IBM to review the documents stored in the New Jersey warehouse.

QSGI did not respond to this request.

11. On February 21, 2012, IBM reiterated its request to schedule a date certain to

review the stored documents. However, on February 22, 2012, QSGI's counsel informed

IBM via email that there were no boxes stored in the New Jersey warehouse because the

boxes had previously been produced to the SEC and never returned to QSGI.

12. On February 23, 2012, IBM requested that QSGI make a witness available for

the Rule 30(b)(6) deposition on either March 9, 12 or 13, 2012. QSGI did not respond.

2


13. On February 28, 2012, IBM again requested that QSGI make a witness

available for the Rule 30(b)(6) deposition on either March 9, 12 or 13, 2012. QSGI again

failed to respond to IBM's request.

14. On March 5, 2012, having received no response from QSGI, IBM noticed the

previously agreed to Rule 30(b)(6) deposition for March 12, 2012.

15. QSGI's counsel has never identified any particular request for documents or

interrogatory as overly broad or requested that IBM narrow a particular document request or

interrogatory.

16. In my communications with QSGI's counsel, I have communicated solely

with Juan P. Bauta or his assistant. I have not communicated with Case A. Dam.

17. IBM has sent QSGI multiple detailed letters in an effort to engage with

QSGI's counsel productively to move fact discovery forward. Specifically, IBM's letters

include the following: Oct. 27, 2011 letter (scheduling conference summary); Dec. 6, 2011

letter (QSGI's deficient initial disclosures); Dec. 8, 2011 letter (issues concerning proposed

protective order); Dec. 21, 2011 letter (issues concerning proposed protective order); Jan. 19,

2012 letter (QSGI's overdue responses to Document Requests and Interrogatories;

outstanding response to the revised draft protective order; and failure to supply compliant

initial disclosures); Feb. 2, 2012 letter (document production issues; overdue responses to

IBM's Document Requests and Interrogatories; revised draft protective order; and refusal to

supply compliant initial disclosures); Feb. 8, 2012 letter (failure to respond to IBM' s

Interrogatories and Document Requests, produce documents in response to Document

Requests, comply with agreed ESI protocol and provide a compliant privilege log); and Mar.

5, 2012 letter (records retention deposition). QSGI's counsel, in almost every case, did not

3


Laura Besvinick

provide a written response to these letters.

18. QSGI's communications to IBM have been in almost all cases limited to

occasional phone calls from QSGI's counsel to myself, often, as described in my February

declaration, occurring several days after missed deadlines or numerous requests from IBM

for a response.

19. QSGI has never offered to review its documents for responsiveness to

particular requests by IBM and "produce all responsive documents". Rather, QSGI has

proposed to produce an electronic repository of documents, culled only for privilege, without

regard to whether particular documents in the repository were requested by IBM.

I declare under the penalty of perjury that the foregoing is true and correct.

Executed on March 12, 2012

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EXHIBIT A


Morningstar® Document Research℠

FORM 8-KQSGI INC. - QSGIFiled: November 14, 2007 (period: November 06, 2007)

Report of unscheduled material events or corporate changes.


UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 6, 2007

QSGI INC.(Exact Name of Registrant as Specified in its Charter)

Delaware

(State or Other Jurisdiction ofIncorporation)

001-32620

(Commission File Number)

13-2599131

(IRS Employer Identification Number)

400 Royal Palm Way, Palm Beach, FL 33480(Address of Principal Executive Office)

Registrant’s telephone number, including area code: (561) 835-9757

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar® Document Research℠


ITEM 2.02 Results of Operations and Financial Condition (a) On November 6, 2007, the Company issued a press release disclosing its financial results for the three and

nine months ended September 30, 2007. Text of the press release dated November 6, 2007, titled “QSGIReports Third Quarter Results; 54% Increase in Gross Profit within Data Security & ComplianceDivision; 19% Increase in Gross Profit within Data Center Maintenance Division; Achieves ThirdConsecutive Quarter of Positive EBITDA" is furnished as Exhibit 99.1 to this current report.

ITEM 9.01 Financial Statements and Exhibits (d) The following exhibits are being filed or furnished with this report: Exhibit 99.1 a. Text of a press release issued by the Company dated November 6, 2007, titled " QSGI Reports Third

Quarter Results; 54% Increase in Gross Profit within Data Security & Compliance Division; 19%Increase in Gross Profit within Data Center Maintenance Division; Achieves Third ConsecutiveQuarter of Positive EBITDA"

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on itsbehalf by the undersigned hereunto duly authorized.

QSGI INC. Date: November 6, 2007 By: /S/ Edward L. Cummings Edward L. Cummings Chief Financial Officer and Treasurer

2



IR Contact Exhibit 99.1David K. Waldman/Klea K. TheoharisCrescendo Communications, [email protected](212) 671-1020

QSGI Reports Third Quarter Results

54% Increase in Gross Profit within Data Security & Compliance Division

19% Increase in Gross Profit within Data Center Maintenance Division

Achieves Third Consecutive Quarter of Positive EBITDA HIGHTSTOWN, NJ—November 6, 2007 QSGI, Inc. (OTCBB: QSGI), the only provider of a full suite of information technologysolutions to help corporations better manage hardware assets, maintenance expenses, and ensure best practices for data security andregulatory compliance, today reported financial results for the three and nine months ended September 30, 2007. Recent Developments: ��54% increase in gross profit within Data Security & Compliance division and 19% increase in gross profit within Data Center

Maintenance division ��Added over $300,000 of additional Data Center Maintenance contracts increasing the division’s anticipated annualized

revenue run rate to $7.0 million during the fourth quarter ��Added global consumer products company and the U.S. subsidiary of a leading international tire manufacturer for full suite

of data security and compliance services ��Entered into an agreement with one of the largest electronics OEMs headquartered in Europe to re-market excess North

American manufacturing and service parts ��Data Center Hardware division negatively impacted due to anti-competitive business practices by a leading OEM

Marc Sherman, chairman and chief executive officer of QSGI, commented, “The third quarter was characterized by continued stronggrowth in recurring services within both our Data Security & Compliance as well as our Data Center Maintenance divisions, whichwas offset by a sharp decline in our Data Center Hardware division due to what the company believes to be actionableanti-competitive business practice by a leading OEM. These practices have impacted the entire industry for remarketing zSeriesmainframe systems. The Company is evaluating its options with respect to these practices and the OEM. Nevertheless, the Data CenterMaintenance Division achieved yet another double digit increase in revenue and gross profit posting a 19% increase while maintaininggross margins at 64%. At the same time, growth in higher margin end-user data security services allowed the Data Security &Compliance division to post a double digit increase in revenue and gross profits as well.” Mr. Sherman continued, “Growth in the Data Security & Compliance division is being driven by legislation to protect confidentialinformation contained on enterprise storage systems, servers, and desktop PCs. Revenue within the division increased to $6.2 million,from $5.0 million in the comparable quarter last year, while gross profit rose 54% and gross margin increased over 290 basispoints. Recent client wins in this



division included one of the largest electronics OEMs in Europe, a global consumer products company with over 100,000 employees,a U.S. subsidiary of a leading international tire manufacturer with production facilities throughout the U.S., a major wholesaledistributor and GE Commercial Finance in India. We look forward to reaping the rewards of these additional revenue sources in thecoming months. Excluding a one-time gain, net of expenses of approximately $300,000, attributable to the successful settlement of amatter that the Company had pursued in litigation, EBITDA loss for this division was $273,000, but greatly improved over the$583,000 and $357,000 EBITDA losses in the first and second quarters this year. This reflects the fact we were able to maintain ourreduced level of SG&A during the quarter as we increased gross profit within the division. We look forward to crossing the thresholdto profitability within this division in the very near future.” “As we have stated in the past, we are shifting resources from the lower margin re-marketing of technology equipment towards ourhigher margin recurring IT services across the spectrum of equipment in data centers and the corporate computingenvironment. Accordingly, revenues within our Data Center Maintenance division increased to $1.7 million compared with $1.3million in the third quarter of last year, an increase of over 24%. This division has now experienced double digit growth for over 14consecutive quarters and we are currently at a revenue run-rate of approximately $7 million heading into the fourth quarter, up fromjust $5.3 million annualized run rate for the fourth quarter of 2006. Mainframe and mid-range server maintenance contracts obtainedin the second quarter and early third quarter contributed to the revenue gain and with new contracts coming online, we expect thisgrowth to continue. Our new business pipeline continues to expand as word spreads regarding our capabilities and the outstandingvalue we offer our customers versus the alternatives in the marketplace. We also continue to expand our suite of services, adding Sunserver expertise earlier this year, as well as building upon our midrange p-Series, x-Series, i-Series and HP capabilities.” “While we experienced a sharp decline in the Data Center Hardware division during the third quarter, revenue in our other twodivisions was quite strong. We expect revenues in the Data Center Hardware division will continue to feel the impact of the OEM’strade practices and for this reason we will continue to shift our resources towards the recurring and higher margin services in our othertwo divisions. Even with the impact of these new trade practices, the ongoing shift in our revenues allowed us to achieve positiveEBITDA for our third consecutive quarter and we expect this trend to continue.” Total revenue for the third quarter of 2007 was $8.8 million, as compared with $9.4 million for the same period in 2006. Gross profitwas $2.1 million, compared to gross profit of $2.3 million in the third quarter last year reflecting the decline in revenue within theData Center Hardware division. Gross margin for the third quarter of 2007 was 24% compared to 24% for the same period lastyear. Revenue within the Data Security & Compliance division for the third quarter of 2007 was $6.2 million, while gross profitincreased 54% and gross margin increased over 290 basis points to 15%, reflecting the company’s shift from wholesale remarketing tohigher margin end-user services. Revenue within the Data Center Maintenance division increased 24% to $1.7 million, while grossprofit increased 19% on gross margins of 64%. The year-over-year decline in gross margin from historical levels within the DataCenter Maintenance division reflects additional personnel the company added to handle its new mid-range maintenance serviceoffering, which improved over the second quarter of 2007 as the company increased utilization of its new personnel. The strength inQSGI’s Maintenance division and data security services was offset by revenues within the Data Center Hardware division, whichdecreased 70% to $911,000, after elimination of intercompany revenues. The decline in revenue within the Data Center Hardwaredivision reflects the erratic nature of sales within the division and a difficult selling environment. Selling, general and administrativeexpenses were $1.9 million, versus $2.3 million for the same period last year, as overhead reductions and settlement of litigation in thecompany’s Data Security & Compliance division offset the additional technical capabilities added to provide services for themaintenance of IBM mid-range and Sun server hardware. Net loss available to common stockholders for the third quarter of 2007 was$182,773, or $0.01 per share, compared to a net loss of $226,138, or $0.01 per share, for the same period in 2006.



Conference Call

QSGI will host a conference call at 10:00 a.m. Eastern Time today, November 6, 2007. During the call, Marc Sherman, chairman andchief executive officer, Seth Grossman, president and chief operating officer, and Ed Cummings, chief financial officer, will discussthe Company’s quarterly performance and financial results. The telephone number for the conference call is 866-334-4934. A livewebcast of the call will also be available on the company's website, www.QSGI.com. To listen to the live call online, please visit thesite at least 10 minutes early to register, download and install any necessary audio software.

The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for one weekby calling 866-245-6755, conference ID # 299402. The encore recording will be available two hours after the conference call hasconcluded.

About QSGI

QSGI provides a full suite of information technology solutions to help corporations and governmental agencies better managehardware assets, reduce maintenance expenses, build best practices for data security and assure regulatory compliance. With a focuson the entire range of IT platforms - from the PC to the mainframe, the services offered by QSGI are specifically designed to reducetotal cost of ownership for IT assets and maximize the clients' return on their IT investment.

For enterprise class hardware in the data center, QSGI offers hardware maintenance services, hardware environment planning andconsultation, refurbished whole systems, parts, features, upgrades and add-ons. Additionally, for desktop IT assets, servers and SANproducts, QSGI offers a range of end-of-life services that include: automated asset auditing, Department of Defense (DOD) level datadestruction, documentation for regulatory compliance, hardware refurbishment with worldwide remarketing or proper IT assetrecycling. Given the sensitive nature of the company's client relationships, it does not provide the names of its clients. Additionalinformation about the company is available at www.qsgi.com.

Statements about QSGI’s future expectations, including future revenues and earnings, and all other statements in this press releaseother than historical facts are ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, Section21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. QSGI intendsthat such forward-looking statements involve risks and uncertainties and are subject to change at any time, and QSGI’s actual resultscould differ materially from expected results. QSGI undertakes no obligation to update forward-looking statements to reflectsubsequently occurring events or circumstances.

(tables follow)



QSGI INC.

CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)

September 30, December 31, 2007 2006

Assets Current Assets

Cash and cash equivalents $ 661,488 $ 632,948 Accounts receivable, net of reserve of $381,282 in 2007 and $780,116 in 2006 4,239,986 8,012,421 Inventories 7,377,065 4,982,710 Prepaid expenses, income taxes and other assets 168,057 183,069 Deferred income taxes 598,661 598,661

Total Current Assets 13,045,257 14,409,809 Property and Equipment, Net 286,072 410,241 Goodwill 6,644,403 6,644,403 Intangibles, Net 2,629,760 2,555,584 Other Assets 445,509 158,784 $ 23,051,001 $ 24,178,821

Liabilities And Stockholders’ Equity Current Liabilities

Revolving line of credit $ 4,275,360 $ 3,915,825 Accounts payable 1,165,287 1,382,336 Accrued expenses 484,168 601,850

Deferred revenue 482,717 517,439 Accrued payroll 126,852 329,658 Other liabilities 103,450 122,784

Total Current Liabilities 6,637,834 6,869,892 Long-Term Deferred Revenue 225,889 416,239 Deferred Income Taxes 294,561 451,625 Total Liabilities 7,158,284 7,737,756 Redeemable Convertible Preferred Stock 4,234,056 4,220,577 Stockholders’ Equity

Preferred shares: authorized 5,000,000 shares in 2007 and 2006, $0.01 par value, none issued – –

Common shares: authorized 95,000,000 shares in 2007 and 2006, $0.01 par value;31,172,716 shares issued and outstanding in 2007 and 2006 311,727 311,727

Additional paid-in capital 14,195,732 14,390,976 Retained earnings (deficit) (2,848,798) (2,482,215)

Total Stockholders’ Equity 11,658,661 12,220,488 $ 23,051,001 $ 24,178,821



QSGI INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor The Three and Nine Months Ended September 30, 2007 and 2006

(Unaudited)

Three Months Ended

September 30, Nine Months Ended

September 30, 2007 2006 2007 2006 Product Revenue $ 6,753,288 $ 7,964,854 $ 22,659,971 $ 30,002,721 Service Revenue 2,003,599 1,400,856 5,156,272 3,838,453 Total Revenue 8,756,887 9,365,710 27,816,243 33,841,174 Cost Of Products Sold 6,018,499 6,610,560 18,731,156 25,067,620 Cost Of Services Sold 654,474 492,994 1,830,475 1,282,739 Total Cost Of Sales 6,672,973 7,103,554 20,561,631 26,350,359 Gross Profit 2,083,914 2,262,156 7,254,612 7,490,815 Selling, General And Administrative Expenses 1,904,476 2,312,095 6,897,779 7,203,007 Depreciation And Amortization 181,079 174,752 520,796 516,432 Interest Expense, net 166,798 56,481 297,990 156,264 Loss Before Benefit For Income Taxes (168,439) (281,172) (461,953) (384,888) Benefit For Income Taxes (55,257) (123,652) (133,370) (101,199) Net Loss (113,182) (157,520) (328,583) (283,689) Preferred Stock Dividends 65,031 64,323 192,970 191,359 Accretion To Redemption Value of Preferred Stock 4,560 4,295 13,478 12,695 Net Loss Available to Common Stockholders $ (182,773) $ (226,138) $ (535,031) $ (487,743) Net Loss Per Common Share – Basic $ (0.01) $ 0.01) $ (0.02) $ (0.02)Net Loss Per Common Share – Diluted $ (0.01) $ (0.01) $ (0.02) $ (0.02) Weighted Average Number Of Common Shares Outstanding

–Basic 31,172,716 31,172,716 31,172,716 29,774,939 Weighted Average Number Of Common Shares Outstanding

–Diluted 31,172,716 31,172,716 31,172,716 29,774,939



QSGI INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For The Nine Months Ended September 30, 2007 and 2006(Unaudited)

2007 2006 Cash Flows From Operating Activities Net Loss $ (328,583) $ (283,689)Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 520,796 516,432 Stock option compensation expense 11,204 13,229 Deferred income taxes (157,064) (180,588)Common shares issued for services – 161,687 Provision for doubtful accounts, net of recoveries (240,650) 556,483

Changes in assets and liabilities: Accounts receivable 3,667,086 655,216 Inventories (2,394,355) (1,480,478)Prepaid expenses and other current assets (139,378) (64,464)Accounts payable and accrued expenses (819,943) (682,086)Net Cash Provided by (Used In) Operating Activities 119,113 (788,258) Cash Used In Investing Activities Purchases of property and equipment, net (89,311) (100,220)Net Cash Used In Investing Activities (89,311) (100,220) Cash Flows From Financing Activities Proceeds from the issuance of redeemable preferred stock – 2,236,301 Proceeds from the exercise of options and warrants – 9,100 Stock issuance costs – (25,499) Payments for financing costs (167,827) – Preferred stock dividends (192,970) (191,359) Net amounts (paid) borrowed under revolving lines of credit 359,535 (710,000)Net Cash Provided By (Used In) Financing Activities (1,262) 1,318,543 Net Increase In Cash And Cash Equivalents 28,540 430,065 Cash And Cash Equivalents – Beginning Of Period 632,948 153,794 Cash And Cash Equivalents – End of Period $ 661,488 $ 583,859

_____________________________________Created by Morningstar® Document Research℠http://documentresearch.morningstar.com



http://documentresearch.morningstar.com

EXHIBIT B


EXHIBIT “A”

Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 1 of 12Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 2 of 13

Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 2 of 12

SUBPOENA

UNITED STATES OF AMERICASECURITIES AND EXCHANGE COMMISSION

In tb~ i\1I11cr orOSGI, la£,. no-I1303

To: Cu$tQcban or ReconlsQSGI.I~

c/o Mr. MM: Sbcnnan400 Royal Palm W7"fPalm Ikal:h, Florida 33480

YOU MUST PRODUCE everything ~ilieol in the AnachrnentlO this Sllbpoena tool1k= uf the S«lIril;es and Exchange Commissilln al the ~Iace, dale and lime spocificd below:

100 f SlnlCI, N,E., Washington, D.C. 2OS49·S631, Janll;\f)' IS, 2009 by 5:00 p.m.

a YOU MUST TFSflfY be~off=orlbe SecuriMs and ExehangeComnn~;II theplace. date: nlime $pCci.fial below:

FEDf.RAL LAW K£QUIRF_"i VO TO CO;o.WLY WITII nus SUB!'Ol:NA.tai~ 10 couqllymaylllb}cd)OO 10 a lUx JIld/or itl::\*iJoo'lICU.

D...Nina H. I'inaonBranch ChiefD;v;';on of enforcemenlSecwili~lI .nd F.xchanb'<' Commihion100 I' SlreeI, N.E.Wuhinaton. D.C. 20549-5631(202)551-4961

I ....~ offl«!" of the Securities and I:Jldwlge Commission ..tbotW:d 10 issue: ,,'bpoerw in Ihismailer. The Secunues and Excha'lgoe Commission h. islIuecl ... bmaI <.>rOer~ng dlisiD"tstig,aiXal under Section 21(.1.) ofthc Sccunlic:s Exchange Act or 1934.



ATIACHMENTQSGI, Inc.

December 18, 2009

J. Ddin;l;ons and Rilles OfCOnSlrUClion

A. As used in this attathment, the term "QSUI"mealls QSG1.1nc. and its presentand fonner subsidiaries, affiliatcs, predecessors, successors, officers, directors, agentS,employees, shareholders, partnerships, panners, finders. promoters, tonSultants. attorneys.auditors, and acoountanlS. and any aliases, codc names, trade names. or business names usedby any of the foregoing.

B. As used in this allachment, the term "Vic1<>ry Par"" means Victory ParkCapital Ad~isors LLC and its present and fonner suhsidiaries, affiliates. predecessors,succcss<;>rs, officcrs, directors, agents, employees, shareholders, partnerships, partners,finders, promOters. c'lOsul1a!IIS, allom"ys, auditors, and aceowllants, and any aliases, ood"names, trade names, or business names lL'Ied by anyofthe fnregning.

C. As used in this anachment, the term "Kinetic Ad~isors" means KineticAd~ison LLC and its present and fonner subsidiaries, affiliates, predcccss<;>rs, successors.officers, directors, agents, employees, shartholders, partnerships. partnt:r.>, finders,promoters, con,ultant~ al1ome~, auelitors, anel accountants, and any aliases, codc names,trade names, or business names used by any of the foregoing.

D. As used in thi, anachment the tenn "documenTS" means all records, materials.and other Iangible fonns of expression however and by whom~vcr created, produced, orstored (manually, mcchanically, electronically, or otherwise). including, but not limited t".work papers, papers. reports, files, cOTTCSpondence. notes, memoranda (induding notCS andmcmonnda of communicaTions or meetings), gntphs, ehans, research. analyses, ledgersheets, periodic account statements, oonfinnations, telegrams. telexes, facsimiles, telephonelogs. chcd:s (front antl back), drafts for money, wire tranSfCT receiptS and requests.conlinnation. of wire or cash troll.fers, deposit slips, invoices, bills, bills of lading, recordsDC billings. records of payment, summaries of intaviews, transcripts, calendars, daTebooks,worksheets, contracts. agreemcilts. bank statements. vidootapcs. audiol:lpes, and othcrpeml3llenl voice and image recor<lings (including voice-mail). magnetic tapes, oolllPUt~r

prinTouts, computer tapes, disks, diskcnes. di.k packs, and other clectronic media (indudingelectronic-mail), microfilm, microfiche, and other slorage devices. The term "documents"includes finished versions and dr.ft. ofdocuments; it also includes the original documellt (orcopy ThereofiCthe original is noT available) and all "opies that dilTcr in any resp<.'Ct fTom Theoriginal.

E. As used in this anachment the tenn "concerning" means concerning. referringto, per1aining to, rcnecting, describing, evidencing, or constituting.



As usOO in this anachment Ihe tenn ";Ill" shall be construed as any, all. each,

F. As used in this anadunent the tenns "and" and "or" shall be eonstrned as botho.lisjullCti~e and conjullctive to bring ",ilhin the S(;opc uf the altac!ullent all responses thatmight otherwise h~ ""n.lruoo outside of it< <cope.

G.and every.

H. As usOO in this atlaclunent the singular fonn of any word includes its plural,and vice versa.

II. Production

Pursuant to this suhpoena, prooJuee the following documents in your possession,e""tooy, or control:

A. Documents mrncientto identify all current and former. (I) officen; (2) diroctoo;;(3) llCCOllIlting penonnel; (4) sales """"",nel; (5) shipping and n:ccivingpersonnel; and (6) other employees of QSGl during the period JanU3l)" 1,2007thruugh. the pm;cnt by 11iIme, title, o.lates of&elViee, and social security number orlax identification numher, as w,,11 as documents mfficiQlt to identify the lastknown contact infonnalion (address, email address. cell phone number, andlandlinc numbl.-r(s)) ofeach person;

B. Documcms sufficient 10 identify by fUllction t!>os<: pernons identified inresponse to RC<juest A wOO worked in accounting, e.g., controller. accoWltsreccivabl" clerk, aceoWlts payable clerk. elc.

C, All <!ocumcnts concerning: (1) John Cunningham's resignation from QSGl'sBoard of Directors on Or about April IS, 200~, including, but not limited tothe '»orsonal reasons" rerC'Tenced in QSGl's Form IO-K for the fiscal yearended Decembt::r 31, 2008; (2) Edward L. Cwnmings' resignation as a directorofQSGI on or about Octob<.T 23, 1008, including, but nOllimited to, hispurported intcn;st in "reduc[ing] the size: of the Board ufDirectors 10 createmanagerial cfficicncies at the Board leveJ"; (3) Mr. Cummings' ceasing 10 bethe Chief Financial Officer and TreasureT ofQSGI in or MOund May 2009; (4)Mr. Cummings' appointmenT as Vice President of Finance and ConlTOlJ"r inor around May 2009: (5) R. Keith ElIinfs resignaTion rrom the Roan! ofDirectors on Or aboUI February 27, 2009; (6) QS(Jl's decision that ScthGrossman's contract would not roll fo!Ward and would be for a period ofThreeyears commencing January 1,2009; and (7) Seth Grossman's cessation ofemploymenl as QSGl's President and Chief Operating Officer on or aI>ouTMarch 9, 2009.

D. Documents sufficient to identify the address ofeach location at which QSGIQpmlted at any lime during the period January I, 2007 Ihmugh thc presenl,including, hut not limitcd 10: (I) facililies maintained at Pleasantville, NewYorl<; Caneret, New Jersey; lIigh~<town. New Jersey: J.>alm Reach, Florida;

-2-



Eagan, Minne!lOta; and BohmIia. New York; and (2) .salcllilC sales andbu<i"""" developmenl offices in Colorado, Conneclicul, Florida, Georgia.llIi........ hwli....... K-. M.clUI""- Mi-.ri, Ncbraaka. New Jcney, N_York. Obio, Pamsylvania, Sooth Carolina. Tuas. aDd Wisconsin.

Documents suffici~ 10 idmllfy exh buslness K'gmenI to which eachIoca1ioD identified in n'SpOlU'110 Requeslll related at any time during !he

period J.muary I, 2007 lhrouch the prc:scnt;

F. Documents SlIfTlCient to identify tM activities earried 011 at each locationidenlified in~ 10 Request D, e.R,. office. sales, and/or storageofin,=aory,

G All documcnl5 "",,":(:111I;118 QSGr. -ntin& policies. proc:aturcI IlId~ and inlC11lll1 controls. including. but 1101 limiled to. lkKummlicono:ening acoounlS payable. I'e\'enue r«(lgnilion, sal.,. reuuns. creditIIppl'Oval and "")'lIlCl11 terms. bonUICI and commissions, ace:ounll n:cei,.,.,blereserves, invaltory reICI"\"CI. inventory managcmenl. and pllldlilSing;

11. All do<.:umenlS mainLaincd for pUTJlOSeS of, or olbef\\isc concemina.. tMpreparalion of QSGI's linallci.l slatenlL'l!.S, including. but oot limiled 10,joumal enuies (manu:.l and olherwise), generallcdgcrs., check regislen:, lrialbal:l./1<;C'>. clLSh receipto journal~, cull rt':l;cipts dala, sales journals, purchasesjournals, sales invoices, c~it mcmos. vcndors' invoices, .salel rtpOns,accounls receivablc :.ginll anal~is, accounls payable aging anal)'$i\, inlerimlin~ial sl.alcmenL... periodic sales n:pons, reponing packages, businessplans, budgets, cash flow ...:pons, physIcal invcmory coonls. and financialstalement projecliuns;

L Documents sufflCienllO identify aillucali""" al which in"enlory wasma.intaincd al any time durinllM period Jnnuary I, 2OO71hroogh 1M preamt.including. bul ""'!JOllIed to: (I) fa<:ililia leased byQSGI; aDd (l)lhird-panyaonge facilitiCl at ",ltklt lovenlOr)' "';IS maimaina;!;

J. Documents suflieieollo idmIlfy all inventory maintained at any poinl in time.. each Iocalioo identifi~ in anP'erto Request 0;

K. Doeumc:nI.s sufficient to idmlify. (I) !be Inventory 'lOki at a ... referenced atr-21 orQSGrs Form lOoK for the fisc.al ye:u ended Deamber 31, 2008; (2)the ploceeds from each item tokl; (3) !he loss taken on each item sold; (4) thedate(s) of purdlase and sale; IDd (S) !he identity and last u-ou eontae1inromwioo for Ibc purchaser oreach ilem sokl;

L All documents concl:lnin& 1M purported .mti-eompc:titi,~ pnc1JC.... by aleading OEM rcfamced at~ 21, 23, 26. aod F-21 orQSGl's Fonn lOoKfor tM flSCl! )'tar ended December 31, 2008lhat signif1UD1ly m.p.;lcd on !heilldusuy'. ability to n:marI:et II:l~ zScrin mainframe compuler equipment;

-J-



M. All documents concerning how Ihe anti-rompelitive practices referenced inRequest L impacted on QSG1's financial condition.

N. All documents concerning the underlying reason(s) for lhc increasc in QSGrsinventory reserve of5200,000 referenced at p~ge 27 ofQSGrs lorm lOoK forthe fiscal year enlled Decemb<:r JI. 2008;

O. All documents conccrning QSGl's taking an impairment charge of57,206,698referenced at page JI of QSGI'. Fonn IO-K for the fiscal year endedJ)e,:,:mber 31, 2008;

P. All docnment. coneeminll QSGl's monitoring and analyzing inventoryallowances for excess, slow-moving, and ob",lete inventory during the periodJanuary 1, 2007 through the present, including, but oot limited to: (I) theidentity of all petOOns involved in each inslllnee of monitoring and analysis;(2) the dates on which monitoring and analysis occurred; and (3) all resultinganalyses;

Q. Documems snllicient to identify all customers of Q~GI by name. ooliTe,;".phone number, and eontact or representative during the fiscal )'('ars endedDecember 31. 2007 and 2008, respectively. and the percentage of overall salesattributable 10 each customer,

R. Documents sufIiei~'1lt 10 identify all .upplier,; of inventory to QSGI during thefiscal years ended December 31, 2007 and 2008. respectively. and thepercentage of overall purchases by QSGI in each year al1ributahle to eachsupplier;

Documents sufficient to identify all agreements with Wells Farg<l, including.but not limited 10 any cre<.lit facility in effC(:t at any time during the periodJanuary I. 2007 through the present;

T. Copies of all agre<:ments with Victory Park, including, but not limited to: (I)Securities Purcllilse Agreement; (2) Senior ~ccurity Purchase Agreement datwon or about Junc 5. 2008; (3) Amended and Restated Soxurities Purclw5eAgreemcnt dated on or about July 10, 2008; (4) Senior Secured Term Notedatoo on or about November 17, 200~; and (5) Secoml Amended and RestatedSecurities Purchase Agreement dat~'<l on or about December 31. 2008;

U. All documents oon.cming the calculation of the borwwing h:u;e under any ofthe agreements idemifie<l in Tespons<: to Requests S and T;

V. All documellts concerning all communications with or concerning VictoryPark. including, but not limited to: (I) notifications of the borrowing basc; and(2) an cmail communication by QSG! tel Victory Park in 2008 informingVictory Par\: of QSGl's interest in writing down it~ existing inventory; (3)and. Victory Park's forwarding of said email communication to RobenVanHellemOnl.



W. AU documenlS CCJnCCmillJ!he malerial ..l2lc~m QSGl's intcrmol alfllrol0\'« financial~ lNt led man;agcmcm 10 axlCludc: thai il$ disdolW'l.'control J'fO"I"Iun:s ..-".e "noc ..ff<'Cri",,~.. of Decemb. ) I, 200$, '" i,,.hcMOdaI p.agc 34 ofQSGI'1 FOl'TII IQ-K forthe filall year mdocl Deambc:r Jl, 200S;

X. All documcn15 cnnceming all communieauonl between tor ilmOng QSGI :lndRubin13mwn l.t.P andlor Morison COllfll LLP eos..nGan~~w;th or iIJl10ngcOfII:m\ing QSGI dlllinl& the period January I. 2008 through the pn.'$\.'Tlt,including. hut IlOl limited to: (a) internal cummuniations within MorisonCogen; (b) oommuoiCalKlllS with MoriIon Cogm: and (c) commUlUcaU(NI$.....Ih or involving all other third parties. ~g.. broken, deal...... in\"estment orodln bankera, tllStOmCn llId!or suppliers of OSGI. cmtilOn of QSGI, andKinetic:Ad~

y, AU doc:ltmml$ u:rcw;anin& QSGI's~ m outside audItor in 200S; and

Z. All minutc:a, resolutions. llI1d other documcnts generated by or distriblllcd 10:(1) QSGl's Board ofDireclOri /I.IId any rommille<: thereof, including. hlll ootlimited to, the audit eommiuee and compenJ.ll.tion cQmmittee; Or (2) individualmembers oflhc Board ofOirttton or a wmminee in their capacity asmnnbera lhereofduring lhe pc:riod Janu<ll')' I, 2007 throu&h lhc: present.

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SECURITIES AND EXCHANGE COMl\'IISSIONWa.llialtoo, D.C. !Os.t,

s..pph-mnllal lnformatioo" for I"~D~R",Uht'" to Suppl)'I "'"rmooo,, Vlllu"laril)' or lJlr«ltd 10 Sopply Inforn,uion

I'orsuanl to a l.:oml1liuion Subporna

SDction 1001 of Tille 18 0Ilt-. UnitIId Stain Code prO\'ldel. .. I<llk>ws:

""'-,•. in.....,__ lt-.juI...lOi.of.....,~.or.,..eyoflt-.~SWI.Iu_~ogIy.-.d...., -..... 000 :,_or~up by.....,h:l<._. or clinice. "'IlIIIII1Icl. or ..... .....,~.lictitloutorlr__' ....GOII....__ioo... OI.......or_....,~_lungor~~It-. ....... '" concair>....., WH.~ or lI'olldullnl~ or....,. _ t>Ii WIed ..... IhiD IitIa orimp<WorIId I1DI """olhln ... YN'S. or _.

TOlllmony

If your leIlirnony IIlakon. you ahOuld be IW;U. of th.loIklMrlg:

,. R«otd. V_tes~will t>Ii lranso'(Jed by. reporw. "you """'" 10 00 ottlhl -.s. plMse 0""'" !hill to IhICoiI.I· . ...-npI<IY".I3llIng,.... I ...... "'. whowill"""",,". Ar.e,,* togranl,....~ Tho lepoI1el willnoc 000/1__ .,.....or,....~.. ""..-.

2.. eo...- YOU_u-. ~1IOt>IiKtXAI...-...... -.cl1l'lCl ad'wIMd byCXIUI"IMI of,....lhlooLY_~mIylICMIeyou bcikn. duringn'" 'fOOl I r I"'". QIJ Iyou~ at _ c:oroc:b:ion of'fOOlIMI I"''' 110 dIrIy....,ofII'lli ."_1 you Pduring l8AnIOfIY; 1I'ICl ....... .............-y..- dln'll 'fOOIlMr-"IY..-ey lor)'OUf UH." YOU.'~ by C<IUR$II. you may~ prt.elIIy.

11YOUllRlnotaccompanlldbyoo<.nfDl.~_IheCommluion empklyeolllkiogyourla1lmooy__<'luringyourtes!imony you dlSirllOw.ccom~,IlP'lIlilhld and otdYiMd by ""'-"lSIl, Your 1M1i""""" will be adjco.lmId 10 """'dyou ... oppotlurOty 10 .,... 10 dO SO.

YOU",.,.W,. 'lIIdby~whoalso'... iII_l*S"'"4oMll.1din hC..." •• I i .." ......Iig........ 'JNiI,....... '... ', . '.I>ll I'•• po 1tI Q:lI"IIlir;l:of_1I...........s•••II••or....,.W_1IO--...you..~by-....l_ I "'IlI_PI'WOI.alocl\ed ..h .... "·g hCaI.1wiII......_you ......=IId.-.d~.._COi_."iQP ··..coo_at lhcdlOiceof 0CUISIl1l'lCl 'IhI1_od>lIlI;, lor ""a.o.;.a.;. "",".

3. T~A ....1 I""'. R..... ' '" IhoI Oomm....,.,·s RuIIIl'Wating 10 llM'StigalIona. 17 CFR 203.6, rt.Il...:

" per..,., wflO "as $ubrnftl«l <loc\.ImI!'IUiry O\IklenCl 01 testimony In 0 formAl Ir\ve$tigart-l pr..-linI,J IntIll be1<"JIilI«l. upon _en r9QUM~ to~ II CllPV oI lIoI;:umenIary~ 01 all'anscript oIl'IiIlestimony onpayment 01 ... appr<lllriablllDs:~ /lo(:>wll ThIlIn a """llUt* IormaI "'.rlg ,.. pioc..di"\1 ltIIComol : .",.,.lorgood dony..,;t1~In...,--.....,.. uponpropli Idoooilitlcalillo.__IhI rigIlIlOinIpKt h oIicial ofh...-· own ""'I"'IY

lyou -'>110~aOO9J'"lI'II of.,our I I"'",.....epor1If .... 1If<l"'idiI 'f'OU"" .copyOl...appr......torm. "*to.*l'..1Id 110 "4'PIY.""_I-..-iy"bllIIowed 'IhI~ pOOOOOld bV_....

•. PIt;Jry. SecIion II!l21 at Tille ,801'1h1 UnIled StaleS CodIpooidlt _laIows:

WIIoeYI< •.. t\DYIfIg 1aJ<en., 0Ith l*llrIa compelant lritlunII.llIIicer, 01 PIQOf1, in..., CUI'" ANch , ....-01_IJnjted S10181 authOrlZlllW'i 0Ith 10 be IKlmlnisllHed, thai I'll .... l8IStifv. o;ltciafo. depoea, Of cenifylnJJy -Mllt\lllyIIl"od eonlflry to IUCI1 0Ith SUIIelI 01 $Ubectlbes Drry mller\el rTIlllter wI'IlcIl '" dOeS IlOl bIIlevIlO bI trill 18 gIiIIyoIpe<jJryIl'lClIlhlll, UCIPI__ Ia. ••p<M&Iy prOYidDd l:\'I'la"-,bI intd_thiI titlIOfimprisonad nol mQII

II'IIn ... ,... or bolh ••••

SEC IIl1S2 (s.<W)



!. FlfI/l AIl _or_ VcolIIIiIf)' T, f ....~. ,"*",,-yougwmay bJi uJed JOWISl you In...,........_._ ..knign_ IJt gMI .. <;BninIlllOOCM<ii", twoughI byllw Coo ••• ! • • .....,_~. - -- -

YOU may _.In dJii ...*'... rigtWlf go..-.--:IID you by'" ............0 .... CID'"e..-aon erlN~s-. tog;.. ...,. if"'" •_ may.., ID~O ..... _ you ..~ you It> b. penIIly .. 1DrlIiiIln.

Myou"ltiiaio r ~IO"!t>poMa.you"~ ID ili~.you_IIDI_...,q._.l":.- •. nyou may "Ml you-. Y....ODOP8i.lIOt••• flo e 1lPP'« '.

s. Fotmal~AwIiM>ility.lIlhoi Cotnfl>lss;on ha __uod. formal Dtderolifro.olstigMion. RMIl bJi._ to you d\IIing rou*,Iimooy, II rour req~l. Myou ck!$tIe e copy of tr>e tormel on:ler. ple...meke rou ,equeel In wri\I"'J.

8<lbmUlonl Itld SIlIlemenu

RulI $(~) erllwCoo••, I e""'·'~ on InIoImai n 0It-.1'roc:ed<nI, 11 CfA 202.5(e)._:

Penon!;..too bJi<::o."__ in .• In- l.fgJlig .1nI'f.onlhlir own II ....emit _ ...... lDbeon... · . •""*'llb1"l i __ ..., poeifon III NgM!1D ...- 011 rig..-... Upon...-. .-.in;a; mayliMseSl.d'>llI'...ot"'llIllI"lI..-.eolh i. ,' inclo.o*lg...... • ....,.pertIl'IlD ...... .., ..-.ner .... _....,.be.? '.. lor ~i(l..,

so.O'''i(l'. • priaolDb..... - ·.oIutllll.........dMii;o.IO..COO..' .•IOrINOCOC __.....er .. ldln._ polcee<i<og.S' •• f .by_ I~_III~ID"

'""...... _ 0MIiI;In 0ir1lc:llDr. AIglonII 0iri0:l0I [lIJ;frir;t Ao;h ••""", will. CCIPY ID IIw SId If"''''''COI'lOuC'ling!hl~.., ihOUkl111-'" ceo to IIw epec:lIie"'-liglliotllO wt.:Il 'Ihey ..... In1hI-n. rec::onvnendllioo lOr IhI oommencemonl 01 ..enlor~tproceedi", ie~""by Ihe .!IIl. iiIViUbmiseioneby inlerNlld poe<eonI WIll be fc<war_ 10IhI Commiliion Inconjunction wi1I'llhiltall """""'...,.,."".

ThI,U1I1Ofltll CommiNiM tOUIin~QlkIto O!trOOu<:nllllto'nllsioos~pureuetlttoRule 5(e)u~ inCommission.,iIorceo.IIOI...OOIIdiolOl. wnenb'llIl1deeme8W'~.

RulI5(l) cllfll eorrv- RINIonlr*lrrneilllld 0llM~ 11 Cf1'I202.$(I)._

In 1fII 01 Coo ••• ·ubn'.h=lIgaIioo•. gMI." IIld poOC..di"g tall, ................_ -.:o1zIIion.....,.~ _ persoo-. ~>UCI ed..... H)O, cl-..::tl..-. by _ .. by_ ........ In__............... pclic:yol...COO'.. . .. 11:: ........_F . "01...,.Judl..-may......... ?1 ..··~._lDony~d... IIII'..'-beIIl, ..maybll.bIoughIlgIhJt...,ouc:l'l~.._.....,•.•""*" ...... 'espICll_.A<x:oodily,•..,~irNoIwcIin..&ibceo'...._-...c..•••. J ."""''"'"_i5,.....IO....._.~IO_~ ......ordJii"cloIIIOJdelrblfll1""PfIM00.eooMI'lIlhIclwnIlQIi'lsIllomin""'.... ~.c:M."".oioilJlliili,...-.-.dnollor1he JlUfPOIII01 <e$CIwing II'iY c:riminaI dIargeI "'" hive be&I...mlglll bIl. brought IgIir>el 1Wn. Thill policy reII&:ls1he IIoclIhal....."...IhIComm~"'" ltsltallhielhe ll1Ihofify..fIIPO"SIWilylc<in&liMlng.oon<lucIIng.MllIi1g...oIhII....dlJ;poslng or ~rimlnal prooeedino,. That eutho<ltr IIld ,espo.-.$lbIIily If. 'ffl$1ed In !til AtI..ney a"""'e1 endrop<esentIIllvee 0I1hIt Deparlfnem 01 Jvslicl.

f.-n 011 Inlom'IalIon Ac:l

ThlF,-..oti", •• t .Ai;:l,5U.s.c.m(1hl·fOIA1.~~..."....b .............otWormllicnIO..p.bIc.RulI1300f11c..••• · ; "''''~cnInlorrn8lnIlldAlqo 7 11CfR2OD-'3.prooocIM'~by\OtOcll'~<:IIlfllllke•_~ ............. _'_IONCOO••• It. nol bIl ... "_."'-" FOIA. ThaI _lhJIno1 n.-.....IO..-.Ii<ilyol_.__wilbI_.....~Ior"*'*- oIfII ihofOlA1Il'1( .•d.' diiy,. no__10.__..-..on bIl,.," ..' FCIA i&-'IfY""bIlot- __IOr-.. ...- FOlA.. -oOlIl••you &doiC"Ioi1go•••telfilOliplol,.,.. __1I'oil llDlbI FOIA..lllMIepooo\dll."''P'"" ~IIIgif._.etIi·IfIId.... ~~_.-..elope.

AulI>Oritt lor SoII;J_ , ct lnlorrnMion

Ptncm Di'BC/«J ro SupplyInfo<mll!ioo Punuanr ro Subpcw>e.The au1hOfll)' lor'~lng jlfoduc:aon ct moon,'ion iiiem IorthIn ltIIlIU!>P<>ena: OiIcloeurect1he lnforrneIion to the CCrr\rrIiIsion i&1fIIfIdI10l'j, eob/8CllO lhe vllid '" • 'liDo. 01 iiIV i&gIl tIltJt.. ptMlege roo~ hive.

Pei...RotqwsliodroSl.ipplytJbomt6on~_OnI.._of"'+ '", ...oJ· .-.ooialIheCcm" I .10oo6oi III",*"",,,*,",,*, I,s.:... "indio< 2001... S<e<::>.niNAc:l0l , lD:I;s-.21 01..~ Eller......"",,01 '934; Sidon »1 01111 r ...-...."""at It:». Sidon qer",ln "b''''. Coo ....... Ac:l oIllMO: s-.:lOll

,



01 '" IlMlStmenl AOY>HtI Act 0I11W.l; ..-:117 CfR 202.S. lliIdoII.Q 01 '" ""l"518d intonnoIIon 10 '" CommII3"'n IsvoIunlwy CIO'> 'fOI." pr,rt •

EIM:t 01 HoI &.ippIJlI 'II Io'l/IormIlIotl

"'_.~IO~ ....."WII:UoPl.nu/lnfI(l"''' ...W'lOUWlOc:otrVt "'''!I;Q geo..'"Corrv::t 'e!pn ""'Y....courI_~ 'IOU lOdOlO.' sudl .. _ Is~.-.d I'W ..,. floiIlO ""PP'f''''inIonnDon. I'Wmay be~ lO eM f/NJIOI c:nminaI..._ .lot_.'1jlI 0I0DUIt. In IddioIi<A ~ IN SlotlpOlltllo _..,.,.., pI.il'SUWllOb~EodW~Actoll~''''~''Wb' ..'Coo'_'I'AcloIllHO.IJ'do'or'''~''_:'''--'ActolllHO•.-.difyou. """')Ml-. III or ..... lO _ II'Id ...,.. CO' lO__ ...u i'oquoy. CO' lO procll.a bocb.. plJptta,

W,......_a.IfIIfO'IOt...-lI'Idoe..._..w, iCI llt>poeo..you..-ybeb.ond~oI."ioodIo'_..._Ined not_ .....Sl.000CO'~1ar oIInoc _.,... CO'-.

,.._..~lO~....." .....'~.n....no~ II'Id....""~_1ar~1I:Ipoc:MdI.. CO' _ ~0II'"~1Id "*>nNIioln.

P,hc;p.l uu. 01 ~..." Ill: ,

,"",cam- '·...ioooipllfUpOte...._...·~'IIIN~..." f ,lIlOgdw_"'_1I:I1 1 "."""'*'*_I*SO"hw~.W;MIIng.orll-"IO""_"Ol· ,00"'~MICl.rilieI.....-sor""Iar_"'Co/M'i ! ,

hw.oIco_..._~.1IUCt>_..-0I_-...gw..-:l.......0I1IW~Sec:uriMI"'*"'.... 'IIeo.d.f __ 11:,.'....,.IIo,••••.Wl I" _=1 I .",__orNlla.trdoronalion..ooidood....,be.-inCorrv::t...,..__lIQ"q....O."...lI.......-..... ~""Comi, 1 ,orbllolle>+**JyV-1I:IIMDDflIr..,..wrling. youb/'lOUId not.,.,.... _1IlIt~ or lis _ N'QII • In.. Ie' 11:1. Of COfICUI'Il Of'" wrth. _ po U'>,.wodiloo,. fequeI\,' III .eliol' 01 tighI,~.Of__.. • =,~ Il\bl puporU. or may be _,lell.lObeor lO,_.timflUOtl upon 1IlItComtnission'o,oce/pl,use,~. ~Ie<. or ,-*>n.1n boC>l:OfdanobWllh~.... IItw.0I1nfomIaIlon pocwldod.

IIoullroa ...... af Infotmallon

n...CommoHionoft", tr'IAkes its files ovailBblo10_1)O"*00'lfK1111ltge1IOo5, paIIiculoIIyUniIfld Stilt..AttarMylInCl ItbleprDMCUlOro, Ther.lsalilrel/hoodlhatin'o,"",tion~~ byyouwillbemade ovail.bIeto$uch.g",cieI_rllllppropr!ate,WIlIIII'oar or I'lOl~ Commiuion mal<fl its hi... "vai_1O olhtt (lC/V9fnonent&l-slencies Is. in ganor", .conIid*ltialma~_0Wl.1e Commiaaion and .ucho!he< gove,nm",talageociN.

SIM ront>~ it. hoC oIlhe tOOIine "'"wIlicn rMy be mao. of 1IlIt Inlarmalion turnistled.

1.To 0lICIf<lifIew law.. 'k> o;emeI ~aclMtiN be-.1toISEC..-:IOlhor '-<leraI, stat•.1ocaIOf bleogn law.. "coo,. ~1IgenCiH._~-tagUIatory~tI\k::Im.llndlD<$gn--..tliel ...."""illN.2. BySfC PM'$OfIIIelfarp.ltpOHlol.....ug.aungpooa..... oIcIeIioollaf.Of1l:lconducl~~ by, INloKIIfal...,..--.3.__ ........ ifodlcali<li. 01.~ Of ...- I F: ,01'-'-. _ .. c:MI, crimifIaI Of <egl"Mary In _. lind.,_ -.IaIng bl"gMIefIIIl_CO' parlIiaJIar progr ~.Of bI" rego1 f>1, "*Oforder....., po.nuam ........._ inll!e~Cf_mavtle.........,IOII!eIPP l8M""""""'.•r..... _ ..._.or_.•""-Igrl~'"' aMIoriI)'OfIonllgnMClriliN........,.,Of. ~~_,~l/Oid ,.... c lIitiioty01.. '''''''llOf~_"" I t ~Ofctleolllid.....*"di'llOfIrl'4l'fllo'.... 'II..._Of '"9 ,",.>'Of_......,pwa...r.......

4,."1fIYPO_llI-''''_M<VllIiN _ ........ CO' "'_II!eCoo,.,· . I, Of PeMOI po-..".,WICf .. SlIIl, II • i*!I"Of". is. """'Ohed ....~ClII*iIY

~To._"'_,_OfloNv>"'-"'."-.oriIyorlonllgn-..-aMl<:fty",__oIilllcM.(r\mif'IIIOf_-........,.............-..or_,.tif._ _.a.n.nrtita if,. ry1l:l0l>&*0*"" .'-'1I:I"1IIIl"ftC'l' lIOCiIooo, COO"".llI'" t.n;J Of ,_ , 01 ... 'CliO_.... of""""""dl' .iCI ....iIUnlI of. con&"&Cl. or ....__ of" tita1!e. gr... CO' _ llM'loIk

6. To" _ _. _ Of IonIIgn go... ••,. o\IIlll/f'lcln\)' or IonIIgn INClriiN -.orlIy ''''JlOO _ 10 1Ia~ In_ l'Iimgor'_.... 'of.."""*',w.lI!e......... af • .-:uriIy I 1l "''IIaf.... ,_oil ,1Illo "'1Iain; '"• con&"ea. or II!e iIIsuerOA01 • rar-.grin! CO' ..... I>-.8IiI bI"1IlIt~ """""",. 11:1 1IlIt-.. - ~ ........._.... &'J'1I:I IN teqo Ilf 1lI11UM""f1 deCiooon "" ""' ..........

7. In_._,willi poOCMdlolQll by ilia Commosooon Ptnl*IIlO FbM 102(., '" its RoAN oIl'I'&CIIC1. 17 CAl 201 102(10).

,



.. _ W/iIIIidIIi+d_......_.'-' in IhilsytMm rMy bot dleckl ; 10. ber "'I ho'" ~1heAm8ik:io' InIliIuIe IIIc.-..J~~'o:IIII--.c:ybolrdOt~-'-.IoclIIOtIi:nign· """,OtOOO:JiotI!I-.ont/.1i:nign1OlCUlliel~.Otpi7 .. ''' .. ,Ot ... ego"ll'Qry-.orily..b".ig ..........-.."'p H ..~Ot_1ICIion.

..........__._... tig__Ot-......._y~~by._...,.",...'"'II' .-.otIly.•tor-on~_

1UIhcrilr'. Ot by 1 SIIl..-.g.-."y~ in.aw.g one Ot /I'"lOI'O III ita ,..,obML

10. AI. data!MlU'CllOt~ InIOtmnon lOt piOduCllotl ot"""'"""'Y cIIIcripliYe ,1IliIIlcI tnd l\I'II/yIic.Il.~inIOJPPOtIoI "'-!\Inc:Iion1or wl>idl1lle-ot lUecollectedtnd mainlllinedOtIOt fIoI!l*I~mltllgemenlluo'lclionlOtmlnpowe< ltudies, ...... ,0 respond IOgoIIlIfll 'eIllNS1llor I1atiIticll inIormmion (wiIhout P&'aoneIldentifioalion ot individuals)lI<Ider theF..- oj lnforrnMion Ad 0110 locate $pOCIIIo; IndMOuIIs 101 I*IOIII'Iel ,_d1 01 Olt>er pe<somellJllNlglmeot.......11 roOOt.«liOI, with ...~"""Yand ......... '.'I'iIIPOI.. 'f .....-.:I tJylN **1l1llClri:ies ..... (II de"*'..s-.3(aj(.1)otIhe8eQri:iel Eld."",Adot 1llG4. 15U.S.C. 78c(aj(.7I).0t'-0t7DNlgn_,"lI'" 'II"""Ot__--..-...... tlerJildoMr'to,.....~". 1M' ......,.; "-'IheCOl,.,7; .~

....~~1UemaIIlng!loln:l s.a...- r. IllO!PI_,CotpOtaon. ...,... _Mig -..toOls •inc:IJding bulno1 *"-db..... lkM1lIllGowo' oI..."-.ln ..sv-n...COl' ot ....eurr.q.._ ....~OllpoIII"--COIpoo""_"'-'"'II''''''Ot ..... ib'''.I''''''''''''Ot'''ijIIi'''-'''''''''"'II'ow.y....ib..'.II9IO......ot. blIign ll<"'""'"'.iI.""blIign_-.oriIy.

12. To r.y WullM. ,""*"",,, ...... IfI+ClII~""~ indMcluaI "".-.lily __1PIlOio'!+d by. coo.wl 01 00IlIP"l+njuIbdictioo, "" II • ,+lUll 01 an aoo_ ~_, ...' .... pwIieI in COl' -:!ion with~ "" +Clmnistratlv+ pioe++db'OSinooIvinO aneoatlonl ot 'IioI+tionI 0111.- r.owat $OCUri\ios '-_ (at <leIin+d i'lSoction J(a) (.71 0Ilh+ Securilin Exc:I'Iar'IO&Adoj 1llG4. 15 U.S.C. 780(1)(.7Il Dr11.-Commission', nuiN 01 Prac1ice. I7CFR 202.100·900. Of 0Ih+rwlse, whet••,d",usree•.........., """'t.... fI)fClaI oounsel Of _ individual 0/ en~ry it opeciIicoIIy~tod l<I perform pet\iculIt funcIionI wilh'-'10, ""_. result 01. tne ..dog .aion Otpl~og "" in "",.l+<;1iol, wtlrl1hlo adminitlr,1>On _ .......CImInt byIt>e Conwn;ss,onol ... _ .. Ha.WllioM '"- ",,"'COIN,' bo', fIlJIIoI 01 PI'_.

11........,. m.,. bot _II;>.Congrlllicnal-. hlm ... record 01 .. ftfMduIl in ,__11;> .. ......., __ ...

CongressionaIOIIoI_II...'~ot_-....

l~.To~ to onQIIirieslrnm Io4tmbIrI oj CongI_, ... preu and ... PUI>Nc lOhicto ,_to tpIQfic mllt.... !hIl11heCommIssion hIIlnvIt!lgaled l\I'ld to mlltlQ iJnde< ltleCommiltion', joIIIdidlon.

20. Toprepar..nd publish Inklfmltion ,etllri..... to IIioIatiooIoj!he _aISOCIIIiIies laws as proYICIed In 15 U.S.C. 78c(1) (471).-_.21 To respon:lll;> ..ollpowIas In.., IiigtIQn""_pl""'-'og_

22. TO'1IUIl+ain~.

•



23. TOIlllV~rment.Il~.1OJOW"""'lUIorpoivtl._lK>O'.gem._ .... ..-por.ooog~orconvnercill~"llW"-~.~nmenta::lO"~ ....po,.rol.-..., or 1W>y'-'" ptII$QO'\, lor Cl.1 :Iioo~Indud:.,; CO!!IC1IC...by"" ••D8liw~"""-.ryoftMl.lall""fllndollMt,or"',oiI"Ir_.agoI9i"""',,,r.Df__•• .-Dfeom-.. ,awor""""'.Ir.... p'..........

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EXHIBIT C


Case 09-23658-EPK Doc 135 Filed 09/24/09 Page 1 of 21Case 9:11-cv-80880-KLR Document 44-4 Entered on FLSD Docket 03/12/2012 Page 2 of 22

IBM Reply in Support of Motion to Compel Plaintiff's Responses to Defendants Discovery Requests

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Transcript of IBM Reply in Support of Motion to Compel Plaintiff's Responses to Defendants Discovery Requests