LeMond Cycling, Inc. v. Trek Bicycle Corporation

Filing 139

LeMond Cycling, Inc. v. Trek Bicycle Corporation

Doc. 139 Att. 7

Case 0:08-cv-01010-RHK-JSM Document 139-8

Filed 08/05/09 Page 1 of 25

ZASTROW EXHIBIT 51

Dockets.Justia.com

Case 0:08-cv-01010-RHK-JSM Document 139-8

Filed 08/05/09 Page 2 of 25

DEPOSITION OF WARREN GIBSON
Taken on March 17, 2009

LEMOND CYCLING, INC. -VS- TREK BICYCLE CORPORA TION

PAGE 1 TO PAGE 54

COMPLIMENTARY CONDENSED

Jlcfvantage ~porting

Services,

Jl~
1083 Lincoln Ave.
San Jose, CA 95125 Phone [phone] Fax [phone]

LLC

Case 0:08-cv-01010-RHK-JSM Document 139-8

Filed 08/05/09 Page 3 of 25

DEPOSITION OF WARREN GIBSON

Page 10
1

Q.

And what was your understanding about the

2 3
4

place that PTI would sell these products
enter into
a

deal with Mr. LeMond?
bike dealers or

Was

if they it going
else?

could

to be

an independent

somewhere

5 6 7 8 9

A.

No.

It

was

going to be in the mass market
go

nationally through like Target Stores but looking to
into all big-box stores,
as many as

possible.

And

the

initial
(Interruption)

10

-Q.

THE WITNESS:

-- the initial situation
Okay.
Now

was

11
12
13
14

through Target Stores.
BY MR.
WEBER:
a

in the bike

industry there is
independent

dividing line between the

bike dealers and mass merchants; is that

15 16
17

right?
MS.

RAHNE:

Object to the form.
Yes, that there is

THE WITNESS:

-- the

18

independent bike dealers are very afraid of the mass

19 20 21
22
23

market.

Generally our selling
volume.

was

very low margins in

selling in
operation.
Q.

It

makes

it

very difficult for the
with
a

independent bike dealer to compete

mass market

BY MR.

WEBER:

Okay.

I

am

going to hand you

24 25

what we've marked as Exhibit 128.

III
REPORTING SERVICES

ADVANTAGE

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DEPOSITION OF WARREN GIBSON

Page 11
1 2

(Defendant's Exhibit
Usage Proposal,
Q.
BY MR.

128,

Greg LeMond

-

Name

was marked
WEBER:

for identification.)
a

3
4 5

This is

memo

dated June 3rd,
Greg Lemond's

1999,

from David Haaf to you regarding
Have you seen this before?

proposal.
A.
Q.

6
7

Yes,
SO

I

have.
1999,
where

by June 3rd,

discussions

with PTI

8

had advanced

to the point

potential deal points

9

had been reduced

to writing?
yes.
you could

10
11 12 13
14

A.
Q.

That's right,
Okay.
And

if

just take

a

moment to

skim through

that

and see

do you remember having
on or before

discussions
on those

with Mr. Haaf

June 3rd,

1999,

terms?
Yes.

15

A.

16
17

(Defendant's

Exhibit

129,

e-mail dated

Friday, June 4th, 1999, was marked for identification.)
Q.
BY MR.

18

WEBER:

Now

let

me

hand you an

exhibit

19

from the next day,
dated Friday,

Exhibit 129, which is an e-mail
from Mr. Haaf to you:
I

20
21

June 4th,
a

Hi,

Warren.

This is

copy of what

sent to the New York

22
23
24

office at 1:20 a.m., et cetera.
Do you see

that?

A.
Q.

I

do.

25

Do you

recall getting this from Mr. Haaf
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DEPOSITION OF WARREN GIBSON

Page 12
1 2 3
4

in -A.
Q.

on or about

June

4th, 1999?

Yes.
And
on the

if

we

look at the bottom of

-- the last

line

5

Number 2:

there is item -- deal point $500/000 minimum annual compensation to Greg

first

page,

6
7

guaranteed

for ten years.
Do you see

that?

8 9

A.
Q.

Yes,
SO

I

do.
LeMond and PTI

that by June 4th, 1999/ Mr.
a

10 11
12

were discussing
A. Q.

ten-year deal at $500/000 per year?

That's correct.
Now

at the time of these discussions,

13
14 15

Mr.

LeMond

was

still
RAHNE:

in

a

contract with Greg that

covered parts and accessories,
MS.

right?

Object to the form.
I

16
17 18 19

THE WITNESS:

think
I

you mean Trek.

Mr.
Q.

LeMond was in
BY MR.

a

contract with Trek.
misspoke, sorry.

WEBER:

Let

me

start over.
At the time of these discussions Mr.
was
LeMond

20

21
22
23

still

in

a

contract with Trek that gave Trek the
with his
name?

right to sell parts and accessories
MS.

RAHNE:

Object to the form.

24 25

THE WITNESS:

That's correct.

III
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DEPOSITION OF WARREN GIBSON
Page 13
1 2 3 4 5

(Defendant's Exhibit 130,
5th, 1999,
Q.

Memo

dated June

was marked
BY MR.

for identification.)
Exhibit 130 is
a

WEBER:

memo

from the

next day,

June 5th,

from you back to Mr.

Haafi is that

correct?
A.
Q.

6
7

Yes,

it

is.

And do you

recall selling Mr. Haaf this -memo?

8 9

sending Mr. Haaf this
A.
Q.

Yes,
Okay.
I

I

do.
And the

10
11
12

first line of Exhibit
that
I

130

says:

hope you have had time to review the revised

nonbinding
morning.
I

letter of intent
just

faxed to you this
is

13

spoke with Greg LeMond and he

14 15 16
17

interested

in this potential opportunity

and

is looking
1999,

forward to our conference

at 230 p.m.

calIon Monday eastern district time.
correct.
1999, would

June 7,

Right?
A.
Q.

18

That1s
So

19
20

by June 5th,

it

be

fair

to say
and

that discussions with PTI had gotten very serious
specific?
A.
Q.

21
22 23
24

Yes, they were.
Okay.
Now

did

you have an understanding

about whether Mr. LeMond disclosed any of these

25

discussions he was having with Trek

-- with

PTI to Trek

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DEPOSITION OF WARREN GIBSON

Page 14 1
2

or whether

he made efforts
MS.
Go

to keep

it

secret?

RAHNE:

Object to the form;

foundation.

3
4

ahead,

if

you know.

THE WITNESS:

That was to be kept very
and not disclosed

5 6
7

confidential at that time
Q.
BY MR.
WEBER:

to Trek.

And how do you know that?
me.

A.
Q.

Well, he told
Okay.

8 9

Did you have an understanding

about

why he wanted to keep

it

secret

from Trek?

10 11

A.
was

He had an ongoing contract

with Trek and

it

12
13
14

at -- probably two reasons: One, he had a current contract in place and he was negotiating a new
same

contract the
was
a

-- for
a

the

same

products and so there
a

conflict
that he

on the

on having

contract in place
And two,

15

and
knew

negotiating for
was

new

contract.
a

if

Trek

16

negotiating with

company

that wanted

17
18 19

to take products into the mass market, they probably
would have

not

let

him out of the contract

that he
complete

was

in with them because
completely against
do business.

it

would have been

a

20
21 22
23
24

their

business plan and the way they

(Defendant's Exhibit 131,

fax transmission

dated August 10, 1999, was marked for identification.)
Q.
a

BY MR.

WEBER:

Okay.

I

am

going to hand you

25

document we've marked as Exhibit 131.

That is

a

fax

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DEPOSITION OF WARREN GIBSON

Page 15
1

from Mr.

Sidney Bluming in

New York

to Michael

Sproule

2
3 4 5

with
1999.
A.
Q.

a

copy to you and Mr. LeMond dated August 10,
Do you see
Urn-hum.

that?
I

do.

And the
memo

first line refers to:
of June 22nd -- and
your attention

In accordance
so on,

6 7

with the deal
A.
Q.

right?

Yes.

8
9

Let

me

direct

to the second
quote,

paragraph,

the last line.
agreed,

It

states,

Noting

10
11
12 13

that

we

all

at least for the time being,

that

PTI should remain in the background.

Is that right?
A.
Q.

Yes.
And

14

did you have an understanding

of what

15
16
17
18

Mr. Bluming was
A.

talking about?
I

Again,

--

Greg

did not want Trek to

know

anything about the potential

PTI contract because Trek

would never release them from the accessory and

peril

19

contract

that he

was

currently in with

them

at that

20

time.
Q.

21
22

Now

in doing the PTI deal,

was

-- to

your

knowledge

was Greg worried

that taking his brand into

23

the mass market could negatively
MS.
RAHNE:

affect his bike sells?

24
25

Object to the form.
Yes, he was at

THE WITNESS:

first,

and as he

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DEPOSITION OF WARREN GIBSON

Page 16
1

thought through

it

he decided

that -- and listening to

2
3 4

the PTI folks, he decided that

that would be worth the risk
handled.
Q.
BY MR.
WEBER:

it would be something if it was appropriately
And
a

5 6 7 8 9

Right.

did Greg protect

his financial downside by obtaining
per year guarantee from PTI?
A.
Q.

ten-year $500,000

Yes, he did.
So

his financial

downside was

protected

if

10

his bike sales suffered, right?
A.
Q.
I
-

11
12

that's correct.
RAHNE:

But Trek was hung out to dry?
MS.

13

Object to the form.

14

THE WITNESS:
Q.
BY MR.

That's correct.

15
16

WEBER:

Let's

move

forward,

then, over

the next few years 1999, 2000,
was having,success

2001.

Lance Armstrong

17
18

in the

Tour de France,

right?

A.
Q.

That's right.
And he was

19
20

getting

a

lot of attention
success?

because

of his personal story and athletic
A.
Q.

21
22

Yes.
And as
a a

result or in conjunction with that,
a

23
24

road bikes as

market segment were experiencing

lot

of success,
A.
A

weren't they?

25

lot -- very

much

success, yes.

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DEPOSITION OF WARREN GIBSON

Page 17
1
2

MS.

RAHNE:

Objecting

to the forms of your
and

questions.
continue
Q.

They're terribly leading, but go ahead

3
4

if

you would

like.

5 6
7

Did you -- can you tell me whether or not you knew that -- how road bikes were
BY MR.
WEBER:

doing in connection
A.

with Lance's success on the bike?

Well,

only from being involved in the
industry,
Europe

8 9

industry,

the bicycle

that

when an American

is having success in
sales increase.
Same

in bicycle racing,

bicycle

10 11
12

thing happened

when Greg was

having his success prior to Lance; bicycle sales
increased.
And then

there was

a

downswing

after

Greg

13

retired,
increased.
Q.

and then when Lance came on

to the scene

14

bicycle sales in general

in the United States

15
16

Did you have discussions with Mr.

LeMond

17
18

about how he might approach Lance and embrace or reject
Lance's success?
A.
Q.
A.

19
20

Yes,

I

did.

Tell
I

us about

that.
LeMond

21 22
23

suggested that Mr.
a

ally

and

embellish Lance as

colleague for business reasons;
Lance and

that

if

he was supporting

we'll

say mentoring

24

him, because he was the retired
could help LeMond

former

champion,

that

25

bicycle sales with the bicycle

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DEPOSITION OF WARREN GIBSON

Page 18
1 2

consumer.

with Greg working closely with Lance
which
I

it

would have drove his sales,

believe at that
15- and $17

3
4

time

may

have been somewhere between
I

million.
up

think that
I

it

could

have drove those sales
a

5 6
7

substantially.

would hate to put

number on

it

because who knows.
Q.

Did you have discussions with Mr.

LeMond

8 9

about how big the number could get?
A.
I

always thought -- based on Gary Fisher's

10 11
12 13

sales being pretty substantial

at that time,

I

always

thought that Greg's sales could go to 30-,
Q.

$40

million.

Now

beginning in 2001 Mr. LeMond began making
comments

some

very critical

about Mr. Armstrong;

is

14

that right?
A.
Q.

15
16
17
18

Yes.
Were you

-- did

you have discussions

with

Greg about the impact of those comments

and what

it

was

doing to his bike brand?
A.
Q.

19 20 21
22

Yes,
And
I

I

did.
us about

tell

that.

A.

suggested that Greg leave his personal

feelings about what he felt about Lance alone due to
business
business

23
24 25

reasons,
reasons

not only his business reasons but
as

my

well, because

if

Greg was

a

popular

and successful

former

athlete aligned in business -- in
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DEPOSITION OF WARREN GIBSON

Page 19
1
2
a

business relationship

with Lance,

it

would not only

drive overall bike sales, LeMond bike sales,
would make

but

it

3
4 5

it
Now

easier

for
I

me

to get additional

contracts

for Greg.
Q.

Consequently

would make more money also.
by 2001,
you had known Greg

by that time,

6 7

for
A.
Q.

17

years or so, right?
Yes.
And worked

8
9

with him in
Yes,
I

a

number

of deals?

A.
Q.

Yes,

I

did.

had.
him and engaged
as well?

10

Okay.
a

And had

travelled with
and social

11
12 13 14

in
A.
Q.

number of personal
Yes.
And

activities

did you have

a

number of discussions

with

Greg about Lance Armstrong
Lance?

and Greg's

attitude towards
that -- for

15
16

A.

I

spoke to him on many occasions

17
18

business reasons
thoughts
tempered

--

he ought to keep his personal

as opposed

to coming out and making
I

19

his negative comments,
was due
Q.

which

felt

was

-- initially

20 21
22 23

to pure jealousy of Lance's success.
What do you mean when you say you thought

Mr.
A.

LeMond was jealous

of Lance's success?
a

Well, Greg is

very competitive

guy.
and most

Any

24
25

world-class athlete
world-class

is very competitive,

athletes are very proud of their successes

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DEPOSITION OF WARREN GIBSON
Page 20
1
2 3 4 5 6

and

--

as Greg was

of his successes,

and

I

felt that

Greg was

initially
Right.
He had

doing this as just pure jealousy

just
Q.

from knowing him over the years.

A.

certainly been

on the campaign

trail

about that ever since,
Q.

so...
in the
summer

7 8

Were you aware

of 2001 that

Mr. John Burke at Trek had called up Greg and tried to

9

mediate the dispute between Greg LeMond and Lance
Armstrong?
A.
Q.

10
11

Yes.
And how
Greg

12
13
14

did
me

you know that?

A.
Q.

told

about

it.
secretly

Did Greg

tell

you whether he had

15

taped Mr. Burke?
A.
Q.

16
17

Yes, he did.
What

did he say?

18
19

A.

Well, he indicated that he had tapes that -there
was

if

at any time that Trek wanted to terminate

20
21
22

his relationship,

that he had tapes that would
and

incriminate John Burke
powerful
enough

that

he

felt that

they were

that they --

you know,

that Trek would

23
24

not terminate him.
Q.
Do you

have any understanding that Greg was

25

going to use tapes for leverage against Trek?

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DEPOSITION OF WARREN GIBSON

Page 21
1

MS.
Go

RAHNE:

Object to the form.

2 3
4

ahead.

THE WITNESS:
Q.
BY MR.
WEBER:

That was his intention.
And what do you base

that

on,

5 6
7

something he said or something
A.
Q.

else?

No.

Purely what he told me.
was an
some

In 2004 there

additional round of
of Mr.
Lemond's
comments

8 9

publicity associated with
against Mr. Armstrong.

Were you aware

of consumer

10 11
12 13
14

reaction to those
A.
We

comments?
a a

had

bulletin board,
overwhelming
Q.

website and -- at that time with and the bulletin board had an

amount

of comments on the bulletin board.
LeMond

And

did Mr.

ask you to do anything

15
16
17 18

with the bulletin board?
A.
down.
Q.

He asked

to have the bulletin board shut

Did he say why?
He

19
20

A.

didn't care for the negative

comments

that

were coming out on the
Q.

bulletin board about him.
that in August of 2004 Trek

21
22
23

Were you aware
a

sent Mr. LeMond
A.
Q.
I

notice of breach of contract?

was aware

of that.

24 25

And were you asked to do anything
a

in

terms of
LeMond?

trying to find

new business

partner for Mr.

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DEPOSITION OF WARREN GIBSON
Page 22
1
2

A.

Greg asked

me

if

I

would speak to Specialized

Bicycle companies,

Michael Sinyard,

over in Morgan

3
4

Hill, California.
Q.

Okay.
I

And was Mr.

Sinyard someone you knew?

5

A.
Q. A.
Q.

knew Mr.
-

Sinyard, yes.
a

6
7

For

-

for
So

long time or
yes.

Over the years in the bike industry,
Okay.
I

8 9

did you speak with Mr. Sinyard?

A.
Q.

did.

10

And

did

-

-

did he

tell
was

you anything

about

11
12 13
14

whether Mr. LeMond and what he was doing was very

helpful to the industry or

very negative to the

industry or something else?
A.

Well,

first

he

felt that
I

Greg was

-- the
that he
was
I

15
16
17

money

or the royalty percentage Greg wanted,
This is what

asked to say,

would want

if

with

another company.

Mr. Sinyard's thought was too high

18

because of the margins in the bike industry for sales

19

of bikes was too small.
Q.

20 21
22

And what was the margin he was asking?

A.

Five to seven percent.
And he

then said that he
was

felt that

the

23
24

negative publicity that Greg

generating for the

bicycle industry was not good at all and he would not

25

like to have that situation in his company.
408-920-0222

And

that

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DEPOSITION OF WARREN GIBSON

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1

he said
on even

that he wouldn't be interested in taking Greg
with
a

2 3
4

different
He

brand of bike.

Kind of

like

not trying to say this isn't really associated

with

Specialized.
do
Q.

said he just didn't want anything to

5 6
7

with Mr. LeMond at that time.
Do you know whether

approaches

were made to

other industry

companies

like

Giant or Merida or

8

Pacific?
A.
Q.

9

Yes.
And how do you know that?

10 11 12 13 14 15 16 17 18 19 20

A.
Q.

Greg

told

me.

And what was
was

your understanding about the
those companies

reaction that
A.

-- that

Well, another gentleman

--

and

I

can't tell
And according

you his name

--

researched

that for him.

to Greg, nobody wanted to provide the opportunity to
Greg to put
Q.

their -- his

name on

their bikes.
you

Was

that something Mr. LeMond told

personally?
A.
Q.

Yes.
Now

21
22
23
24 25

in December of
a

2004 were you aware

that

Mr. LeMond sent
A.
Q.

threatened lawsuit to Trek -make

Yes.

-- threatening to
do

tapes public

if

Trek

did not continue to

business with Mr. LeMond?

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DEPOSITION OF WARREN GIBSON

Page 26

1 2
3 4

personally
A.
Q.

maintained?

Yes.
And did you maintain

those records

in

connection with the work you were doing on behalf of
Mr. LeMond?
A.
Q.

5
6 7

Yes,
Was

I

did.

Mr. LeMond aware of the work that you

8

were doing on
A.
Q.

his behalf with respect to the bicycles?

9

Yes.
And how do you know that?

10 11
12

A.

Well, he would always

--

he always had to get
a

his approval before you would give
somebody

bike out to

13

and

and he would want to know what
He would

it

was

14
15

being sold

for. for.
Okay.

tell

you what he would want

to sell
Q.

it

16 17
18

Well, when you say you had to get his

approval and find out from him what he wanted to sell

it
A.

for,

what

do you mean?

Weren't

all
was

the bikes just

19
20
21

sold for approximately
No.

what he

paid for?

They were

there

like

a

--

three

levels.

It's like

close friends, very close friends;
and then there was

22
23
24 25

there was somewhat close friends;

people that he wanted to provide bikes to for one
reason or another.
And so he would

generally take the

very close friends and let them have

it

--

have

the

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DEPOSITION OF WARREN GIBSON

Page 27
1
2

bicycles for his cost, and

he would
as

let pretty close
as
a

friends, or

maybe

that weren't

--

-- it

was

hard

3
4 5

to say, you know;

it

was

just kind of
a

nebulous area
more money,

in there, but there would be
and then

little

bit

for people that
a

he

really didn't know, but for
them
a

6
7

one reason or another

he wanted to provide
was

bike,

he had set up

price structure that

close to

8

wholesale,
Q.

a

little bit

below wholesale.

9

Okay.

10
11

(Defendant's Exhibit 132,

LeMond

Bicycle

file,
Q.

was

marked
BY MR.

for identification.)
WEBER:

12
13

For ease of reference,

I

have

made

a

copy of your original

file
runs

and we have marked

14
15

that

as

Exhibit 132, and
1

it

from Bates numbers

Gibson 370 on Page
can work
A.
Q.

to Gibson

564

at the end.

So we

16
17

off the Bate
Okay.

stamped set

-of what

18

so we can be on the same page

19
20

documents we are looking

at.

First of all,
Gibson 370,
do you

if

we

look at the
a

first

page,

21
22
23 24

recognize that as

photocopy of the
documents?

folder you
A.
Q.

have in front of you of
Yes.

original

Let's turn in to several pages, to Bates Page
the 2001 Fisher and LeMond Price List.
Do

25

373 and 374,

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DEPOSITION OF WARREN GIBSON
Page 28
1 2

you see

that?
Yes,
And
I

A.
Q.

do.
we

3
4

if

could turn to the second page, we

see there four columns
A. Q.

of pricing under

LeMond,

right?

5 6
7

Yes.
And

there is

some

handwriting on there,

Shipping Ground $50 Additional, do you know whose
handwriting
A.
Q.

8 9

that is?
my
Now
a

That's
Okay.

handwriting.
these four columns,

10 11
12
13 14

there is

an

Advertised

column,

Levell

column,

a

GL

Prices, and

Friends prices.
A.
Q.

Do you see
I

that?

Yes,

do.

And what was your understanding

about what

15

those four columns were?
A.

16

The

advertised price is

what Trek would

17
18

advertise
Q.

the bike for sale.
For
a

consumer?

19 20

A.

For

a

consumer.

Yes,

for

a

consumer from

Trek.
Q.
SO

21
22

taking

a

Tete de Course, for example,

at

the bottom of the column.
A.
Q.

23

Yes.
The consumer

24

price for that product would

be

25

$4,499.99?

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DEPOSITION OF WARREN GIBSON
Page 29
1 2
3 4

A.
Q.

That's correct.
Category 2/ Level 1/ did you have an
what that was?
1

understanding
A.

Level
a

was the

bicycle dealer would have to

5 6

buy

number of bikes,

and they had
2

several different
3/ and

levels, Level 1/ Level
on how much

and Level

it

depended

7
8 9

--

how many

bikes the guy -- the dealer
But we

bought at what level he would get the bikes.

will

say the

first level,

being as maybe they bought
a

10

one to

three bikes, would be for

--

staying

on Tete

11
12
13
14

de Course, would be $2/679 Trek

selling the bike to the
What
1S

Trek bicycle dealer.
Q.
SO

the dealer would pay 2/679.

the

third
A.

column?

15 16

The

third

column

is the price that Greg would
a

get that bike for
Q.
SO

if

he desired to get
a

bike.

17 18

he could get

Tete de Course under the

2001
A.
Q.

pricing list for
$1/804.
Okay.

how much?

19

20
21
22 23

So $875

less than
yeah,

a

Levell

dealer?

A.
Q.

That
Okay.

-- that's --

that's close, yes.
fourth column,
the

Then what is the

Friends
A.

column?

24 25

The Friends column

is

what Greg would want to
someone

sell that to -- or provide the bike to for
408-920-0222

that

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DEPOSITION OF WARREN GIBSON

Page 30
1 2

may have been
make

a

celebrity or

someone

that he wanted to

that third level that he would want to provide

3
4 5

that bike for, and that's what -- if I was going to provide it to Bob Tobin, he would say, Okay, I want to
have Bob pay $2,503.
Q.

6 7
8

Okay.

So

approximately $700 more than Greg

paid for the bike?
THE WITNESS:

Yes.

9

MS.

RAHNE:

Object to the form.
$700 more,
And

10

THE WITNESS:

yes.

11
12 13

Q.

BY MR.

WEBER:

that -- that would be

profit to

Greg?

MS.

RAHNE:

Object to the form.
Yes.

14 15
16
17

THE WITNESS:

Q.

BY MR.

WEBER:

Let's

move ahead

to -- why

don't you set that price

list

to one side because we're

going to be referring back to

it.

Just put

it

off to

18

the side.

19

Let's
Gibson 383.
A.
Q.

move ahead

several pages to Bates page

20
21

Okay.
And what

22
23

is that?

What

are

we

looking at

here?
A.

24 25

Right here we're looking at
a

a

--

a

cashier's --

cashier's

check.

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REPORTING SERVICES

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DEPOSITION OF WARREN GIBSON

Page 31
1 2

Q.

Made payable

to

whom?

A.
Q.

Payable to LeMond Cycling Inc.
For how much?
For $2729.99.
Okay.
And does the check

3
4 5

A.
Q.

indicate what kind

6
7

of bike is being purchased?
A.

It

does.

It's

a

Tete de Course, 51

8 9

centimeter.
Q.

Okay.
appears

And

if

we

refer

back to the price
a

10
11
12
13

list, it
A.

that this person got

bike at the

Friends price,

somewhat

-1

Well, over Level

price.

Over wholesale

price, yes.
Q.

14 15 16 17 18

Okay.

So

although Greg was able to get that

bike for $1800
A.

-- I'm

sorry --

That's right,

1804.

Q.
A.
Q.

--

1804,

this person paid 2729.99?
few more pages in to Bates Page

That's correct.

19

Let's

move

a

20

399.
A. Q.

21

Okay.

22 23 24
25

What are we looking
We

at here?

A.

are looking at another cashier's check for
LeMond

$2,553

paid to the order of
and

Cycling Inc. and

jeez,

it's for --

from Tony Basuini

for

155

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DEPOSITION OF WARREN GIBSON

Page 32
1 2

centimeter Tete de Course.
Q.

Does

that reflect

what

that person paid for

3
4 5

the Tete de Course?
A.
Q.

Yes,
Okay.

it

does.
And

there is handwriting
Whose

on

there:

6
7

Sent to Muffy 8-13-01.
A.

handwriting

is that?

That's

my

handwriting.
that note indicate?
note that
name
I

8 9

Q.
A.

What does

That's

a

sent that cashier's

10 11
12

check to Mary
Hague was

-- Muffy's

is Mary Hague.
and

Mary

Greg's administrative assistant,

that

check was sent so Mary Hague on 8-13-01

for

payment of

13

that bicycle to Greg.
Q.

14
15

All right.

So

did you have an understanding

whether Mary Hague was aware of the transactions
were going on in bicycles
and the amounts
them?

that

16 17
18

that were

being charged
A.
Q.

to third parties for

She

did.

19

And what was your
came

interaction with her
up

when
a

20

it
A.

to bike sales and -- and setting
purchaser?
The

price for

21

particular
I

22 23
24

Greg.
Hague
was

price -- the prices were always set by Mary mean, he generally would say what to do.
received the
was

apparently

money.

And

at first
Greg and

it

25

sort of

-- it

done between myself,

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DEPOSITION OF WARREN GIBSON

Page 33
1

myself and parties who wanted to buy bicycles.
and
I

Then--

2 3
4

would speak to Elisabeth Huber at Trek

personally.
I

am

the road -- and not exactly sure what year that was but it could
And Greg changed

that

down

5 6
7

have been

like

2002 or 2003

--

where he no longer
he would

wanted anyone to speak

directly to Trek; that

speak to Mary Hague and Mary Hague would speak to Trek,

8 9

Elisabeth Huber

who handled

the ordering of bikes for

Trek on Trek's behalf.
Q.

10
11
12 13
14

Did you have an understanding as to why Greg

made

that

change?

A.

No.

He

-- well,
Let's
move

he said

-a

he said

it

was

for bookkeeping purposes.
Q.

Okay.

ahead

few more pages to

15

Bates page Gibson 406.

16
17
18 19 20

A.
Q.

Okay.
And

there is

a

check here from Kirk

Bowman

on

June 22nd, 2001.

There is another transaction on the
on the Bowman

page, but focusirig

transaction.

What

transaction
A.

is documented here?

21
22
23

Well,

this is

a

check, June 22nd,

'01,

made

out to LeMond Cycling Inc.

for $2,550 for one 61

centimeter
Bowman

Tete de Course LeMond Ti bike for Kurt
was
a

24 25

and that

bike --

a

check for

a

bike that

Kurt

Bowman was

to receive.

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DEPOSITION OF WARREN GIBSON
Page 34
1
2

Q.

SO

what these people

--

these people

-than

Mr. Bowman,

again,

was paying

significantly
right?

more

3
4

Mr. LeMond paid for the bike,
A.

Yes.
MS.
RAHNE:

5

Object to the form.
Yes.

6
7 8

THE WITNESS:

Q.

BY MR.

WEBER:

In addition to Exhibit 132,

I

also made copies of your other bike original documents.

9

First, take
what
A.

a

look at the original folder and

tell

us

10

it

contains.
These are

11
12
13 14

still

memorandums

from Trek and

photocopies of checks,
Q.

and this

is from 2002 to 2004.

Okay.

And were those documents

that

you

kept?
A.
Q.

15
16
17

These are documents

I

kept, yes.

Did you keep those documents
LeMond?

in connection

with your work on behalf of Mr.
A.
Q.

18
19

Yes.
And what do those documents

reflect?
were

20

A.

These documents

reflect bicycles that
the

21
22

purchased from Greg or given away by Greg during that

period of time and

it

reflects

-- the -- throughout -- or

23
24

via photocopy of the check what the individuals paid
for

it.

On some

of these invoices from Trek
a

25

Fisher -- Fisher Bicycle is
REPORTING SERVICES

subsidiary license

ADVANTAGE

408-920-0222