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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022
EXHIBIT 3
Excerpts of the Transcript of the January 17, 2020
Deposition of John Figone
Index No. 652343/2018
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022
Page 1
·1
·2· · · SUPREME COURT OF THE STATE OF NEW YORK
·3· · · · · · · · COUNTY OF NEW YORK
·4· ·--------------------------------X
· · ·CRESCO LABS, NEW YORK, LLC, a
·5· ·New York limited liability
· · ·company, and CRESCO LABS LLC,
·6· ·an Illinois limited liability
· · ·company,
·7
· · · · · · · · · · · Plaintiffs,
·8· · · · · · · · · · · · · · · · · · · Index No.
· · · · · · · · ·VS.· · · · · · · · · · 652343/2018
·9
· · ·FIORELLO PHARMACEUTICALS, INC.,
10· ·a New York corporation, ERIC
· · ·SIROTA, an individual, SUSAN
11· ·YOSS, an individual, and JOHN
· · ·DOES 1-10,
12
· · · · · · · · · · · Defendants.
13· ·--------------------------------X
14
15
16· · · · · · · · · · DEPOSITION
17· · · · · · · · · · · · OF
18· · · · · · · · · ·JOHN FIGONE
19· · · · · · ·Friday, January 17, 2020
20· · · · · · · · ·200 Park Avenue
21· · · · · · · · New York, New York
22
23
24· ·Reported by:
· · ·AYLETTE GONZALEZ, RPR, CLR, CCR
25· ·JOB NO. 174111
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·1· · · · · · · ·JOHN FIGONE (1/17/20)
·2· · · · ·attorney-client privilege is to
·3· · · · ·protect confidential information.· It
·4· · · · ·doesn't protect a subject matter.
·5· · · · ·Q.· ·I ask again, sir.
·6· · · · ·A.· ·I don't know.· I don't know.
·7· · · · ·Q.· ·Fair enough.· The guaranty, why did
·8· ·it take from March 1 until March 12th to
·9· ·prepare that document?
10· · · · · · · MR. HIPP:· Again, I caution you
11· · · · ·not to disclose communications --
12· · · · · · · MR. LEFTON:· Counselor, those
13· · · · ·objections are just so ill-founded.
14· · · · ·A.· ·I don't know.
15· · · · ·Q.· ·And, indeed, March 1 was already
16· ·two weeks after February 28th, right?· Do
17· ·you -- right?
18· · · · ·A.· ·Your question is?
19· · · · ·Q.· ·March 1 was already two weeks after
20· ·the LOI was executed on February 14th, right?
21· · · · · · · MR. HIPP:· Objection; assumes
22· · · · ·facts not in evidence.
23· · · · ·A.· ·If one follows the calendar, yes.
24· ·The date is two weeks after -- the former date
25· ·is -- the latter date is two weeks after the
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·1· · · · · · · ·JOHN FIGONE (1/17/20)
·2· ·former date.
·3· · · · ·Q.· ·And the LOI was effective
·4· ·February 14th, right?· You remember that?
·5· · · · · · · MR. HIPP:· Objection; calls for a
·6· · · · ·legal conclusion.
·7· · · · ·A.· ·What are you asking me again?· To
·8· ·confirm whether the LOI was executed on the
·9· ·14th of February?
10· · · · ·Q.· ·Yes.
11· · · · · · · MR. HIPP:· Objection.
12· · · · ·Q.· ·Do you recall?
13· · · · ·A.· ·I think -- I think we have an
14· ·exhibit on file that shows -- that shows it's
15· ·executed on that date.
16· · · · ·Q.· ·Look at Exhibit 6.
17· · · · ·A.· ·6, thank you.· Yes.
18· · · · ·Q.· ·Okay.
19· · · · ·A.· ·Thank you.
20· · · · ·Q.· ·So it took from the 14th of
21· ·February to the 12th of March, almost a month,
22· ·to do the guaranty.· Can you explain what the
23· ·delay was?
24· · · · · · · MR. HIPP:· Again, I caution you
25· · · · ·not to disclose communication with
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022
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·1· · · · · · · ·JOHN FIGONE (1/17/20)
·2· · · · ·your client.
·3· · · · ·A.· ·If Fiorello was the security
·4· ·holder, wouldn't they be the ones responsible
·5· ·for developing the documents for their debt,
·6· ·as opposed to the borrower?
·7· · · · ·Q.· ·Well, my understanding is that
·8· ·Cresco undertook the drafting.
·9· · · · ·A.· ·Why would Cresco undertake the
10· ·drafting of its own debt instrument?
11· · · · ·Q.· ·It did provide the draft of the
12· ·guaranty, did it not?
13· · · · ·A.· ·I seem to recollect we might have
14· ·been pulling the labor in ore and offered to
15· ·do it to speed things up, because we were not
16· ·getting a lot of regular communication.
17· · · · ·Q.· ·Did you have discussion with
18· ·Mr. Linsky on that?
19· · · · ·A.· ·I may have.
20· · · · ·Q.· ·But you don't remember?
21· · · · ·A.· ·I don't.· A lot of this is, truth
22· ·be told, one of the senses -- one of the
23· ·feelings I do remember during this period was
24· ·frustration, because I pride myself on moving
25· ·transactions through the process swiftly.· And
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022
Page 192
·1· · · · · · · ·JOHN FIGONE (1/17/20)
·2· ·this transaction was not flowing, it was
·3· ·herky-jerky, or if not, stopped.
·4· · · · ·Q.· ·Well, so you were --
·5· · · · ·A.· ·I would take deference to the
·6· ·allegation that we were being dilatory.· We
·7· ·were anything but, sir.
·8· · · · ·Q.· ·Do you have any memoranda or note
·9· ·that shows that Mr. Linsky was going to draft
10· ·the guaranty?
11· · · · ·A.· ·I don't.· I just have the vague
12· ·recollections that I have today.
13· · · · ·Q.· ·Now, normally who drafts a note,
14· ·the party who's giving the note or the holder?
15· · · · · · · MR. HIPP:· Objection to vague as
16· · · · ·to "normally."
17· · · · ·Q.· ·In your experience.
18· · · · ·A.· ·In my experience, if I'm the one
19· ·who's holding -- if I'm the one seeking
20· ·security, I'm the one who's going to draft the
21· ·guaranty and the other instruments of security
22· ·securitizing my position.· This is unusual.
23· · · · ·Q.· ·Did you discuss with Ms. Lewis who
24· ·should be drafting the note and the guaranty?
25· · · · ·A.· ·Did I discuss with Ms. Lewis. I
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022 EXHIBIT 3 Excerpts of the Transcript of the January 17, 2020 Deposition of John Figone Index No. 652343/2018 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022 Page 1 ·1 ·2· · · SUPREME COURT OF THE STATE OF NEW YORK ·3· · · · · · · · COUNTY OF NEW YORK ·4· ·--------------------------------X · · ·CRESCO LABS, NEW YORK, LLC, a ·5· ·New York limited liability · · ·company, and CRESCO LABS LLC, ·6· ·an Illinois limited liability · · ·company, ·7 · · · · · · · · · · · Plaintiffs, ·8· · · · · · · · · · · · · · · · · · · Index No. · · · · · · · · ·VS.· · · · · · · · · · 652343/2018 ·9 · · ·FIORELLO PHARMACEUTICALS, INC., 10· ·a New York corporation, ERIC · · ·SIROTA, an individual, SUSAN 11· ·YOSS, an individual, and JOHN · · ·DOES 1-10, 12 · · · · · · · · · · · Defendants. 13· ·--------------------------------X 14 15 16· · · · · · · · · · DEPOSITION 17· · · · · · · · · · · · OF 18· · · · · · · · · ·JOHN FIGONE 19· · · · · · ·Friday, January 17, 2020 20· · · · · · · · ·200 Park Avenue 21· · · · · · · · New York, New York 22 23 24· ·Reported by: · · ·AYLETTE GONZALEZ, RPR, CLR, CCR 25· ·JOB NO. 174111 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022 Page 189 ·1· · · · · · · ·JOHN FIGONE (1/17/20) ·2· · · · ·attorney-client privilege is to ·3· · · · ·protect confidential information.· It ·4· · · · ·doesn't protect a subject matter. ·5· · · · ·Q.· ·I ask again, sir. ·6· · · · ·A.· ·I don't know.· I don't know. ·7· · · · ·Q.· ·Fair enough.· The guaranty, why did ·8· ·it take from March 1 until March 12th to ·9· ·prepare that document? 10· · · · · · · MR. HIPP:· Again, I caution you 11· · · · ·not to disclose communications -- 12· · · · · · · MR. LEFTON:· Counselor, those 13· · · · ·objections are just so ill-founded. 14· · · · ·A.· ·I don't know. 15· · · · ·Q.· ·And, indeed, March 1 was already 16· ·two weeks after February 28th, right?· Do 17· ·you -- right? 18· · · · ·A.· ·Your question is? 19· · · · ·Q.· ·March 1 was already two weeks after 20· ·the LOI was executed on February 14th, right? 21· · · · · · · MR. HIPP:· Objection; assumes 22· · · · ·facts not in evidence. 23· · · · ·A.· ·If one follows the calendar, yes. 24· ·The date is two weeks after -- the former date 25· ·is -- the latter date is two weeks after the FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022 Page 190 ·1· · · · · · · ·JOHN FIGONE (1/17/20) ·2· ·former date. ·3· · · · ·Q.· ·And the LOI was effective ·4· ·February 14th, right?· You remember that? ·5· · · · · · · MR. HIPP:· Objection; calls for a ·6· · · · ·legal conclusion. ·7· · · · ·A.· ·What are you asking me again?· To ·8· ·confirm whether the LOI was executed on the ·9· ·14th of February? 10· · · · ·Q.· ·Yes. 11· · · · · · · MR. HIPP:· Objection. 12· · · · ·Q.· ·Do you recall? 13· · · · ·A.· ·I think -- I think we have an 14· ·exhibit on file that shows -- that shows it's 15· ·executed on that date. 16· · · · ·Q.· ·Look at Exhibit 6. 17· · · · ·A.· ·6, thank you.· Yes. 18· · · · ·Q.· ·Okay. 19· · · · ·A.· ·Thank you. 20· · · · ·Q.· ·So it took from the 14th of 21· ·February to the 12th of March, almost a month, 22· ·to do the guaranty.· Can you explain what the 23· ·delay was? 24· · · · · · · MR. HIPP:· Again, I caution you 25· · · · ·not to disclose communication with FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022 Page 191 ·1· · · · · · · ·JOHN FIGONE (1/17/20) ·2· · · · ·your client. ·3· · · · ·A.· ·If Fiorello was the security ·4· ·holder, wouldn't they be the ones responsible ·5· ·for developing the documents for their debt, ·6· ·as opposed to the borrower? ·7· · · · ·Q.· ·Well, my understanding is that ·8· ·Cresco undertook the drafting. ·9· · · · ·A.· ·Why would Cresco undertake the 10· ·drafting of its own debt instrument? 11· · · · ·Q.· ·It did provide the draft of the 12· ·guaranty, did it not? 13· · · · ·A.· ·I seem to recollect we might have 14· ·been pulling the labor in ore and offered to 15· ·do it to speed things up, because we were not 16· ·getting a lot of regular communication. 17· · · · ·Q.· ·Did you have discussion with 18· ·Mr. Linsky on that? 19· · · · ·A.· ·I may have. 20· · · · ·Q.· ·But you don't remember? 21· · · · ·A.· ·I don't.· A lot of this is, truth 22· ·be told, one of the senses -- one of the 23· ·feelings I do remember during this period was 24· ·frustration, because I pride myself on moving 25· ·transactions through the process swiftly.· And FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 485 RECEIVED NYSCEF: 01/11/2022 Page 192 ·1· · · · · · · ·JOHN FIGONE (1/17/20) ·2· ·this transaction was not flowing, it was ·3· ·herky-jerky, or if not, stopped. ·4· · · · ·Q.· ·Well, so you were -- ·5· · · · ·A.· ·I would take deference to the ·6· ·allegation that we were being dilatory.· We ·7· ·were anything but, sir. ·8· · · · ·Q.· ·Do you have any memoranda or note ·9· ·that shows that Mr. Linsky was going to draft 10· ·the guaranty? 11· · · · ·A.· ·I don't.· I just have the vague 12· ·recollections that I have today. 13· · · · ·Q.· ·Now, normally who drafts a note, 14· ·the party who's giving the note or the holder? 15· · · · · · · MR. HIPP:· Objection to vague as 16· · · · ·to "normally." 17· · · · ·Q.· ·In your experience. 18· · · · ·A.· ·In my experience, if I'm the one 19· ·who's holding -- if I'm the one seeking 20· ·security, I'm the one who's going to draft the 21· ·guaranty and the other instruments of security 22· ·securitizing my position.· This is unusual. 23· · · · ·Q.· ·Did you discuss with Ms. Lewis who 24· ·should be drafting the note and the guaranty? 25· · · · ·A.· ·Did I discuss with Ms. Lewis. I