A. Motion for Class Certification will now be heard first and on June 2nd, 2005!

B. Critical Documents attached.

C. CIT Class Representative deposition attached.

Dear Class Members:

Today, Judge Coogan of the Monmouth County Superior Court of New Jersey decided to adjourn the Motion of April 15th Objecting to the Notices of Settlement and Releases of CIT.

Instead, the Judge has decided to hear the Motion for Class Certification first as to all the defendant leasing companies on June 2nd, 2005. This is a critical motion and it affects all class members. I do not expect it to be adjourned.

B. Due to the schedule change, I’ve attached the promised “hot” docs with this email that the class action found in the bankruptcy documents that, upon information and belief, were seized from Tom Salzano’s office. The documents include the following:

CCL October 2003 Equipment Study – due diligence report of CCL (graciously sent to the Class Action by Victoria Fair Woo, Esq. of Evans & Fair of Houston, Texas) – The document, it may be alleged, shows that any leasing company that did a modicum of due diligence should have known of the bundling of services in the ERA and the true worth of the Matrix boxes. See it here

CIT Due Diligence Report of April 12, 2004 – Approximately 2 months before Norvergence went bankrupt. What is especially important about this document is the timing and what is omitted. CIT commissioned InfoTech, a separate entity in Parsippany, New Jersey, to do the report for them. The drafter of the report stated that he was told by CIT’s Phil Hauser that CIT stopped funding ERAs from Norvergence in October of 2003. See it here

The Class Action provided this CIT Due Diligence Report to Rhonda Roland Shearer. She talked with the drafter of the report and the Class Action, in a separate conversation, then spoke with the drafter and InfoTech’s VP of Sales that amended the report. More will be coming on this including an affidavit from Rhonda Roland Shearer. The below may be alleged based on the Class Action’s conversation with the drafter of the report.

The report was based on a meeting at Norvergence shortly before April 12, 2004 between CIT’s Phil Hauser, two employees from InfoTech and three Norvergence executives, including: CFO Robert Fein (Norvergence’s leasing/banking exec), Norvergence’s Chief Technology Officer and Norvergence’s VP of Marketing and Operations. The meeting went for two-three hours.

A couple of months after the meeting, the drafters of the report at Infotech received another call from CIT’s Phil Hauser about Norvergence, it was after the bankruptcy filing. It was at this time (approx. June 2004) that they were informed by Phil Hauser that CIT stopped funding Norvergence ERAs in October 2003.

C. CIT Class Representative Michael Pelligra of Twin Oaks Catering of Oldbridge Turnpike, East Brunswick, New Jersey was deposed last Friday in my offices by Counsel for CIT, Mark Melodia of Reed Smith. I have attached the transcript of that deposition. You should all understand the Mr. Pelligra is supposed to be getting a refund of approximately $1500 according to the AG settlement with CIT in New Jersey, but despite that, he is risking that $1500 and the threat of litigation over the full amount of his lease by standing up to CIT and stating that he refuses to withdraw his class action claims and wishes to continue as a class representative on behalf of all class members. Please read his deposition, it is a story of true heroism, guts and a sense of duty in this battle. It’s the story of a small business person standing up for himself and others like him that he doesn’t even know against large corporations and great odds. See the deposition here

We will keep you apprised as to the Motion for Class Certification of June 2nd, 2005 .