DISTRICT COURT

CITY AND COUNTY OF DENVER, COLORADO

-o0o-

FRED J. JOSEPH, Securities

Commissioner for the State of
Colorado,

Plaintiff, Case No. 2007 CV 5218

VS. Division No. 5

LIFE PARTNERS, INC., a Texas

corporation, LIFE PARTNERS
HOLDINGS, INC., a Texas
corporation, SCOTT PEDEN, SCOTT
BEEMER, ERIC COX, LOWRY LYNNE
DAVIS, GARY HANSON, TIM HARPER,
KENNETH KELLER, MIKE LOWE, LARRY
MICKELSON, JOHN ROTH, RALPH
SIEBERT, and BRIAN PARDO,

Defendants.

Pages 1 to 57, inclusive.

SEALED AND CONFIDENTIAL

DEPOSITION OF DONALD CASSIDY, M.D.

Friday, November 21, 2008

Reno, Nevada

REPORTED BY: CHRISTINA HERBERT

CCR #641 (Nevada)
CSR #11883 (California)
 Page 2 Page 4
APPEARANCES I BE IT REMEMBERED that on Friday, November 21, 2008,
2
3 FOR PLAINTIFF:
2 commencing at 1:14p.m. of said day, at MOLEZZO REPORTERS.
4 OFFICE OF THE ATTORNEY GENERAL, STATE OF COLORADO 3 9460 Double R Boulevard, Suite 103, Reno, Nevada, before me,
BY: CHRISTINE STRETESKY, FIRST ASST. A.G.
5 RUSSELL B, KLEIN, ASST, AO, ONE
4 CHRISTINA M. HERBERT.. a Certified Shorthand Reporter,
1525 Sherman Street, 7th Floor 5 personally appeared DONALD CASSIDY, M.D.
6 Denver, CO 80203
6
303.866.5278
7 7 MS. STRETESKY: Good afternoon.
a FOR DEFENDANT LIFE PARTNERS, INC., ET AL:
9
8 MR. MURPHY: May I interject just a moment, please?
ROBINSON, WATERS & ODORISIO, P.C.
BY: OTTO K. HILBERT, II, ATTORNEY AT LAW 9 MS, STRETESKY: Sure.
10 1099 18th Street, 26th Floor 10 MR. MURPHY: I'm Marvin Murphy, and I'm personal
Denver, CO 80202-1926
11 303.297.2600 11 counsel for Dr. Cassidy. I'd like to object on the record
12
12 for the production of certain documents requested under items
FOR DEFENDANTS BEEMER, COX, DAVIS, HANSON, LOWE, SIEBERT:
13 13 four, six and seven of the request attached to the subpoena
THE TENENBAUM LAW FIRM (VIA TELEPHONE) 1 4 duces tecum. The basis for the objection is privileged
14 BY: THOMAS TENENBAUM, ATTORNEY AT LAW
Suite 600, 10475 Park Meadows Drive 15 information, medical records pursuant to Nevada statutes, NRS
15 Lone Tree, CO 80124 16 49, specifically and also under HIPAA.
303.804.3800
16 17 So Dr. Cassidy will not be producing any of the
17 FOR THE WITNESS: 1 8 documents requested under four, six or seven of the request
18 LAW OFFICE OF MARVIN W. MURPHY
BY: MARVIN W. MURPHY, ATTORNEY AT LAW 19 and specifically with regard to the individuals identified on
19 Sierra Lakeside Professional Offices 20 Appendix I, pages one through five.
3748 Lakeside Drive, 4102
20 Reno, NV 89509 21 MR. TENENBAUM: Before you do that, reporter, can
775.348.501)0 2 2 you put appearances on the record, if you haven't already
21 -00°-
22 23 done so.
23 24 THE REPORTER: Yes.
24
25 MS. STRETESKY: This is Christine Stretesky, first

Page 3 Page 5

1 INDEX 1 assistant attorney general representing plaintiff, Fred

2 Deposition of DONALD CASSIDY, M.D. 2 Joseph, securities commissioner of Colorado.
3 3 MR. KLEIN: Russell Klein, assistant attorney
EXAMINATION BY PAGE 4 general on behalf of the commissioner.
4
5 MR. HILBERT: Otto Hilbert. You all know me.
Ms. Stretesky 5
5
6 MR. MURPHY: Marvin Murphy, personal counsel to
6 7 Dr. Don Cassidy.
7 EXHIBITS 8 THE WITNESS: Don Cassidy.
8 EXH. 9 MR TENENBAUM: Tom Tenenbaum.
NO. DESCRIPTION PAGE 10 MR. HILBERT: Dr. Cassidy's here too, Tom.
9 11 MR. TENENBAUM: Great.
10 I Medical Consulting Agreement 22 12 MR. HILBERT: Is there anything else we can do for
11 2 Confidential Case History,411811* 37 13 you, Tom?
12 3 Confidential Case History, 43
13 4 Confidential Case History, 45 14 MR. TENENBAUM: I'm glad I was able to catch up
14 -o00- 15 with you guys. How's the weather?
15 16 MR. HILBERT: 70 degrees in here.
16 17 MR. TENENBAUM: Beautiful.
17 18 -000-
18 19 DONALD CASSIDY, M.D.,
19 20 called as a witness in the matter herein,
20
21 who, having been first duly sworn, was examined
21
22
22 and testified as follows:
23 23 EXAMINATION
24 24 BY MS. STRETESKY:
25 25 Q Good afternoon, Dr. Cassidy. I'm Christine

2 (Pages 2 to 5)
 Page 6
1 Stretesky and I'm the first assistant attorney general with
2 the State of Colorado, and I represent Fred Joseph in the
3 matter of Fred Joseph versus Life Partners Inc., Et al.
4 You've come -- appeared here today under subpoena
5 and you're represented by counsel who has taken notice of the
6 requests for production that were attached to the subpoena
7 and has stated an objection to producing items that were
8 requested under numbers four, six and seven. And if I
9 understand correctly, the basis of that is that these are
10 medical records.
11 MS. STRETESKY: And if you could clarify, counsel,
12 is it your contention that these are medical records in the
13 possession of Dr. Cassidy as he is the physician for the
14 people listed?
15 MR. MURPHY: He need not be the physician for the
16 people. He has been requested to evaluate the medical
17 records of each one of those patients, urn, and the privilege
18 extends to those patients and may be asserted by Dr. Cassidy,
19 That includes any hard copies or electronic form.
20 MS. STRETESKY: Okay.
2 1BY MS. STRETESKY:
22 Q Dr. Cassidy, I don't know if you have a copy of the
2 3 request in front of you, but let's just go through.
24 Have you brought with you today all communications
2 5 between you and Life Partners, urn, the Life Partners
Page
1 Mr. Bath's law firm from May 1 2007, to present.
2 Have you brought anything responsive to that
3 request?
4 A There hasn't been any communications.
5 Q Request number three asks that you produce all
6 communications between you and all the defendants from May
7 1st, 2007, to the present.
8 Have you brought anything responsive to request
9 number three?
10 A Only the contract.
11 MR. MURPHY: And, again, I guess I should
12 interject. To the extent that it could be interpreted
13 paragraph three -- or that the request number three could
14 include any medical records, the same objection applies. The
15 requests are quite broad in that regard.
16 BY M.S. STRETESKY:
17 Q Are you prepared to state that you have had no
18 communications with anybody from either Life Partners
19 Holdings, Inc. or Life Partners, Inc. since May 1, 2007?
20 A There are phone calls but there's no way to bring
21 those.
22 Q Okay. You didn't make notes during those phone
23 calls?
24 A No.
25 Q Request Number five asks you to produce all

Page Page
1 defendants from January 1, 2004, to the present? contracts between you and the Life Partners defendants.
2 MR. MURPHY: Let me clarify one thing: To the 2 Is what you've already provided us the only
3 extent that that could be interpreted to mean any 3 contract before -- between you and any of the Life Partners
4 communication regarding the patients identified on Appendix 4 defendants?
5 1.1 believe, and that information includes any medical 5 A It is.
6 history or diagnosis or evaluation, then the same objection 6 Q Are there any addendums that you did not bring
7 that we made would apply to number one. 7 today?
8 BY MS. STRETESKY: 8 A No.
9 Q Have you brought any responsive documents to number 9 Q I guess before we begin with the deposition, have
10 one? 10 you ever been deposed?
11 A I have a contract that I signed outlining my 11 A Yes, I have.
12 responsibilities. 12 Q Okay. Under what circumstances?
13 Q Okay. Can 1 please see that contract. 13 A Divorce.
4 A (Witness complies.) 14 Q I'm just gonna go over some ground rules for you.
15 MR. KLEIN: Just to clarify, is this copy for us or 1 5 This is being transcribed by a court reporter. She's not
16 is this your only copy? 1 don't want to mark it up if it's 16 going to be able to accurately reflect your answer if you
17 gonna go back to — I can't remember if we have another copy 17 answer with a nod of your head or an "uh-huh" or "uh-uh." If
18 or not. 18 you could please answer with an actual word and as clearly as
19 MR. MURPHY: We can ask the court repotter to have 19 you possibly can.
20 a copy made. 20 I'm not out to see how long you can sit in that
21 MS. STRETESKY: Yes. chair so, if you do need a break, please let me know and I'd
22 BY MS. STRETESKY: 22 be happy to accommodate that break. But understand that I
23 Q Number two asks that you produce all communications 23 will not allow a break while a question is pending and I
24 between you and any of the defendants' law firms which would 24 would ask that you answer the question that's on the table
25 include Mr. Hilbert's law firm, Mr. Tenenbaum's law firm and 25 and then we can go ahead and break.

3 (Pages 6 to 9)
 Page 10 Page 12
1 Do you understand? 1 Q Sure.
2 A I do. 2 A There is an open complaint that has not been heard
3 Q Are you under any medications that would alter your 3 and that currently is in front of the board of medical
4 ability to answer truthfully today? 4 examiners.
5 A I am not. 5 Q For the State of Nevada?
6 Q Could you describe your educational background? 6 A That is correct,
7 A I attended medical school at the University of 7 Q And what's the nature of that complaint?
8 Texas Medical Branch in Galveston. I did a straight internal 8 A Urn, although we don't know who the plaintiff is,
9 medicine internship at the University of Texas Health Science 9 the complaint was that I ordered an excessive dose of a
10 Center at Houston. I then did an internal medicine residency 10 chemotherapy agent.
11 at the same institution. And then I did a fellowship in 11 Q Have you responded to that complaint?
12 medical oncology at M.D. Anderson Hospital and Tumor 12 A Yes, I have.
13 Institute, also in Houston. 13 Q It's still being investigated, then, by --
14 Q When did you go through your, um — when were you 14 A Right.
1 5 at University of Texas, Galveston? 15 Q -- the board? When was it that you were made aware
16 A Graduated 1974. 16 of this complaint?
7 Q And when did you do your fellowship in oncology? 17 A April of this year.
18 A 1976 through 1978. 18 Q When do you anticipate the board determining --
19 Q Where are you licensed to practice medicine? 19 A February of next year.
20 A Texas, Nevada and California, 20 Q Will there be a hearing in front of the board on
21 Q When did you get your license to practice in Texas? 21 that or you're not sure yet?
22 A 1974. 22 A I don't know.
23 Q Is it currently active? 23 Q Okay. Are you board-certified in any certain
24 A Yes, it is. 24 areas?
25 Q How about Nevada? 25 A Internal medicine and medical oncology.

Page 11 Page

1 A The date when I got it? 1 Q When did you receive your certifications?
2 Q Or year. 2 A Urn, you know, I can't remember. It seems -- I'd be
3 A 1 think '81. I'm not entirely sure. 3 guessing. Early '80s for both of them.
4 Q And you're currently active in Nevada? 4 Q Have you been continually practicing as a medical
5 A Yes, I am. 5 doctor since 1974?
6 Q When did you get your Californiamedical license? 6 A Yes.
7 A 1978, I'm pretty sure. 7 Q And what type of practice do you have?
8 Q Is that currently active? 8 A Internal medical and medical oncology.
9 A Yes, it is. 9 Q Do you see A.I.D.S. patients?
10 Q Have you ever been disciplined by either the State 10 A I'm sorry?
11 of Texas, Nevada or California? 11 Q Do you see A.I.D.S. patients?
12 A No, I have not. 12 A Occasionally.
13 Q Okay. Have you ever had a complaint against you 13 Q What would you say your percentage of your practice
14 filed with the boards of medical examiners for any of those 14 would be seeing A.I.D.S. patients?
1 5 states? 15 A Less than 1 percent.
16 A Um, several years ago 1 think a complaint was filed 16 Q Have you taken any continuing education courses on
17 by a patient but there was no action taken and it was closed. 7 A.I.D.S.?
18 Q Did you have to respond to the complaint? 18 MR. HILBERT: Object to form.
19 A I think 1 produced records. 19 THE WITNESS; Yes, 1 have. I just sat for my
20 Q What was the nature of the complaint? 20 second recertification, so I've taken thousands of hours.
21 A I believe he felt that I let some of his medical 21 BY MS. STRETESKY:
22 records get out without his permission. 22 Q In what areas?
23 Q Do you hold any board certifications? 23 A Well, A.I.D.S. and A.I.D.S. malignancies, part of
24 A I'm -- can I add something to the last question, 24 the medical oncologist's ...
25 though? 25 Q What percentage of your practice is seeing

4 (Pages 10 to 13)
 Page 14 I Page 16

1 patients? 1 A I have no idea.

2 MR. HILBERT: Object to form. 2 Q Did you get paid at that time for each and every
3 THE WITNESS: Well, I'm a sole practitioner. It's 3 medical summary you prepared?
4 what I do. 4 A No.
5 BY MS. STRETESKY: 5 Q How were you made aware that Life Partners
6 Q Is there a certain percentage of your time 6 purchased a life insurance policy?
7 professionally that is devoted to making or estimating life 7 A When I received the check from them.
8 expectancies? Q Would there be a notation on the check or some sort
9 MR. HILBERT: Object to form. 9 of documentation to show you which policies were purchased?
THE WITNESS: Yes. I -- again, I'm estimating 10 MR. HILBERT: Object to form.
11 here, but probably work four days a week in my practice and 11 THE WITNESS: I think some of them had some
12 three days a week in doing life expectancies. 12 notation and I didn't really pay too much attention. They
13 BY MS. STRETESKY: 13 were just deposited.
14 Q No days for rest? 14 BY MS. STRETESKY:
15 A It piles up pretty quickly if you do that. 15 Q Did you retain copies of that documentation?
16 Q How were you introduced to Life Partners? 16 A Recently we have been, yes.
17 A My partner that I was practicing with at the time, 17 Q Have you brought any with you today?
1 S whose name is Jack Kelly, had known Mr. Pardo in the past. 18 A No. I have not.
19 They had had some business dealings and I'm not sure of the 19 Q What were you asked to do under that verbal
20 details. 20 contract?
21 Dr. Kelly died suddenly. He fell, hit his head and 21 A Review --
22 had a failed hemorrhage. When Brian came into town to -- for 22 MR. HILBERT: Object to form. Go ahead.
23 the funeral, 1 was talking with him and I told him I thought 23 THE WITNESS: Review the medical record and give an
24 I could do this job, and that's how it started. 24 expert opinion on the life expectancy of that individual,
25 Q Was Mr. Kelly your partner here in Nevada? 25

Page 1 Page 17
1 A That's correct. 1 BY MS. STRETESKY:
2 Q How long were you partners for? 2 Q Within that oral contract were there numerical
3 A We had practiced, you know, sharing expenses four 3 amounts of how many you would be expected to do in a given
4 years, I guess, something like that. 4 month, let's say?
5 Q And when did that partnership start? 5 A No.
6 A Again, this is an estimation. 1996. 6 Q It was unlimited?
7 Q And when did Mr. Kelly excuse me -- Dr. Kelly -- 7 MR. HILBERT: Object to form.
8 die? 8 THE WITNESS: There was -- nothing was said.
9 A I think it was at the end of 1999 but, again, I'm 9 BY MS. STRE I ESKY:
10 not --it's been some time ago. 10 Q At that time, when you first started preparing
11 Q When did you start working for Life Partners? 11 expert opinions on life expectancies for Life Partners,
12 A Basically within a few days of his death. When 1 12 approximately how many did you prepare in a given month?
13 spoke to Brian, records began to be delivered within a day o 13 MR. MURPHY: If you recall.
14 two. 14 THE WITNESS: Fifty to eighty per week initially.
Q In your thinking, that's late 1999? 15 BY MS. STRETESKY:
16 A Late 1999 or late 1998. I'm not sure. 16 Q Did that number go up or down?
17 Q At that time did you have a contract with Life 17 A It went up.
18 Partners? Q How many are you currently preparing within a week?
19 A No, I did not. Only verbal. 19 A It varies from a hundred to as high as two hundred.
20 Q And what were the terms of that oral contract? 20 Q How are the medical records transmitted to you?
21 A For each insurance policy that Life Partners 21 A Two ways, either a computer disk or they are
22 purchased, I was to be paid 5500. 22 downloaded from Life Partners's website, I guess.
23 Q Would Life Partners have already purchased a life 23 Q And is the computer disk sent to you, mailed to
24 insurance policy before sending you the medical information 2 4 you?
25 to review? 25 A If that is the way that they're sending it, If

5 (Pages 14 to 17)
 Page 18 Page 20

1 it's directly downloaded, there's no disk involved. 1 I may be paid for four or five and then the next month I
2 Q And the website is only something you have access 2 could be paid for 20 of them. It was very variable.
3 to? 3 Q What was the least amount that you ever got paid
4 A The fellow that understands computers has access to 4 for in a month?
5 it. I am not that computer knowledgeable. My office 5 MR. HILBERT: Object to form,
6 manager, I guess I'd say. Are you asking whether I'm the 6 THE WITNESS: I -- I'd be guessing. $2,000. 3
7 only one that it goes to? 7 BY MS. STRETESKY:
8 Q (Counsel nods.) B Q And what is the most you've gotten paid in a month?
9 A That, I don't know. 9 MR. HILBERT: Object to form.
10 Q But in your office you would say the office manager 10 THE WITNESS: Since the new --
11 is the one who downloads the records or prints them off for BY MS. STRETESKY:
12 you? 12 Q No. Let's start -- let's first -- prior to the
•3 A Yes. 13 retainer.
14 Q And you don't know what safeguards Life Partners 14 A $10,000.
15 ensures so that medical records aren't be sent out on the 15 Q And now how much is the retainer a month?
16 Internet for anyone to view? 16 A $15,000.
17 A I'm not -- 17 Q Okay. And that's -- the retainer is $15,000?
18 MR. HILBERT: Object to form. 18 A (Witness nods.)
19 THE WITNESS: I know nothing about their computer 19 Q And then do you get additional payments --
20 setup. 20 A (Witness nods.)
21 BY MS. STRETESKY: 21 Q -- on top of that?
22 Q Do you know if you are the only physician who is 22 A Yes.
23 currently preparing life expectancy determinations for Life 23 Q And what's the additional payment?
24 Partners? 24 A The same $500 for each policy that was purchased.
25 A No, 1 do not. 25 Q And, again, how do you know whether or not Life

Page 19 Page 21

1 Q When you get a medical -- strike that. Sorry. 1 Partners has purchased a policy?
2 Is this medical consulting agreement dated the 10th 2 MR. FIILBERT: Object to form.
3 day of February 2008 the first written agreement you've had 3 THE WITNESS: Strictly speaking, I don't.
4 with Life Partners? 4 BY MS. STRETESKY:
5 A Yes, it is. 5 Q It's an honor system, then.
6 Q After so many years what precipitated a written 6 MR. HILBERT: Object to form.
7 aueement? 7 BY MS. STRETESKY:
8 MR. HILBERT: Object to form. 8 Q Would you agree?
9 THE WITNESS: There was a change in the financial 9 MR. MURPHY: Well, that's -- I'm gonna object on
10 -- how I was being paid. 10 the basis that that's asking for somewhat of a moral
1 BY MS. STRETESKY; 11 conclusion.
12 Q What was the change? 12 MR. HILBERT: And speculation.
13 A A retainer was begun that would be paid regardless 13 BY MS. STRETESKY:
14 of how many policies were purchased or not. 14 Q You can go ahead and answer.
15 Q Up until this point in February of 2008 when the 15 A 1 trust Mr, Pardo.
16 payment structure changed, what was the difference between 16 Q Who was your contact person at Life Partners?
17 the amount you reviewed and the amount you got paid for? 17 A Most of the contacts are made by my office manager.
18 MR. MURPHY: Do you understand the question? 18 The occasions that I have had to call in a lady named -- her
19 MR. FIILBERT: Object to form. 19 name is LaDonna. I cannot recall her last name.
20 THE WITNESS: Not -- 20 Q And you're unsure of who your office manager
21 BY MS. STRETESKY: 21 communicates with at Life Partners?
22 Q So you were reviewing policies, and say they gave 22 A I'm sorry?
23 you 50 to review in a week. Would you then the next week get 23 MR. HILBERT: Object to form.
24 paid for 25? 24 BY MS. STRETESKY:
25 A It was very variable. There would be months where 25 Q You're not sure who it is at Life Partners that

6 (Pages 18 to 21)
 Page 22 Page 24

1 your office manager -- 1 Q An attorney representing you?

2 A Usually LaDonna. There's also a Felicia. 2 A I believe it was an associate of my wife.
3 MS. STRETESKY: Could we take about a 10- or 3 Q That was reviewing it for your interest?
4 15-minute break so we can take a look at the contract? 4 A He looked over the contract.
5 MR. MURPHY: Certainly. 5 Q Okay. Under "Recitals" on the first page there's a
6 MS. STRETESKY: We'll go off the record for a few 6 paragraph that -- the first "whereas" paragraph -- the only
7 minutes. 7 "whereas" paragraph refers to the company, being Life
8 (Recess taken.) 8 Partners, Inc., engaging you to provide certain life
9 BY MS. STRETESKY: 9 expectancy underwriting services. What does "underwriting
10 Q Let's go back on the record. 0 services" mean?
11 MS. STRETESKY: I'm having marked the contract as 11 MR. HILBERT: Object to form.
12 Exhibit I. 12 THE WITNESS: I don't know.
13 (Deposition Exhibit 1 marked for 13 BY MS. STRETESKY:
4 identification.) 14 Q If you could turn to the second page, under Section
BY MS. STRETESKY: 15 3.3 titled "Delivery of Certain Information to Cassidy," it
16 Q Did you ask for this contract? 16 lists out six different types of information that would be
17 MR. HILBERT: Object to form. 17 sent to you from Life Partners.
18 THE WITNESS: No. 18 Who developed that list?
19 BY MS. STRETESKY: 19 A I don't know.
20 Q Life Partners presented it with you or did you 20 MR. HILBERT: Object to form.
21 discuss it with Life Partners first? 21 BY MS. STRETESKY:
22 MR. HILBERT: Object to form. 22 Q Did you have any input as to what information you
23 THE WITNESS: I never discussed a contract with 23 would need to be able to make the life expectancy
24 them. 24 determinations?
25 25 A No.

Page 23 Page 2

1 BY MS. STRETESKY: Q Do you have an opinion as to what type of

2 Q So a contract showed up in the mail one day? 2 information you need to make a life expectancy determination?
3 MR. HILBERT: Object to form. 3 A Yes.
4 THE WITNESS: No. I was contacted by -- I forget 4 Q What's your opinion?
5 who it was in their office -- who said, in view of the amount 5 A The date of birth, the sex, the medical diagnoses,
6 of the retainer, that they wanted to have a contract in 6 the medications, the family history, the personal habits.
7 place. 7 Q With regard to the medical diagnoses, is there a
8 BY MS. STRETESKY: 8 time -- a time frame that the information would be too old
9 Q Did you request that the retainer be put in place? 9 for you to know whether or not it was still valid?
10 A No, I did not. 10 MR. HILBERT: Object to form.
11 Q Did you negotiate the amount of the retainer? 11 THE WITNESS: Depends on the diagnosis.
12 A No, I did not. 12 BY MS. STRETESKY:
3 Q They presented 515,000 to you and you accepted? 13 Q Say it was diverticulitis. If they had
14 MR. HILBERT: Object to form. 14 diverticulitis 10 years ago, would that make a difference to
15 THE WITNESS: That's correct. 15 you?
16 BY MS. STRETESKY: 16 MR. HILBERT: Object to form.
17 Q Do you know who drafted this contract? 17 THE WITNESS: Well, it depends on the clinical
18 A No. 18 situation.
19 Q Did your attorney draft the contract? 19 BY MS. STRETESKY:
20 MR. HILBERT: Object to form. 20 Q In the agreement it requires "ail medical records
21 THE WITNESS: No. 21 shall be the most current available but at least within the
22 BY MS. STRETESKY: 22 past 12 months." Would you accept medical records that
23 Q Did your attorney review the contract that's 23 were -- the earliest was older than 12 months?
24 Exhibit 1? 24 MR. HILBERT: Object to form.
25 A I believe an attorney reviewed it. 25 TI IE WITNESS: I review what records are provided to

7 (Pages 22 to 25)
 Page 26
1 me.
2 BY MS. STRETESKY:
3 Q Have you ever had an occasion where you had sent an
4 insured's medical records back to Life Partners stating that
5 you couldn't make a life expectancy determination based on
6 the information provided?
7 A Yes.
8 Q How often has that occurred?
9 A Rarely.
0 Q What were those occasions?
11 MR. MURPHY: If you recall.
12 THE WITNESS: Yeah. I -- the only one I recall
13 specifically was a notation in the chart concerning a mass in
14 the lung and a biopsy had been planned and there was no
15 further information concerning the biopsy.
16 BY MS. STRETESKY:
17 Q But you don't recall ever sending them back because
18 the medical records were too old?
19 MR. HILBERT: Object to form.
20 THE WITNESS: No.
21 BY MS. STRETESKY:
22 Q Does Life Partners send with the -- with this
23 information in here a cover letter with this information?
24 A No.
25 Q So could you describe what — what exactly it is
Page 2
1 that you get from Life Partners?
2 A I get the medical records of the person involved,
3 Q Is there an expected turnaround time? Once you get
4 the medical records, when are they expecting you to provide a
5 report with the life expectancy?
6 A I don't know. They would like it as soon as is
7 reasonable but I don't know whether that -- what their
8 parameters are.
9 Q When do you like to get them their report with the
10 life expectancy? Do you have an internal time frame?
11 A I try to get them back within two days.
12 Q Are they sent to you where you'd receive medical
13 information trickling in all day long or is it at 5:00 on a
14 given day you receive a package that has -- or a download
15 that has numerous medical records?
16 A Yes. It's either a disk with all of the records
17 for that day or a download all at one time for the records of
18 that day.
2.9 Q Okay. When you provided your life expectancy
20 determination to Life Partners, do you provide it in a range
21 of months?
22 A Yes.
23 Q Do you ever provide a -- not a range but a single
24 number of years or months that you're providing a life
25 expectancy determination?
Page 28
1 A No.
2 Q Did you develop the different sets of ranges that
3 the left expectancy determinations usually fall within?
4 A This is my clinical opinion. The -- any
5 development stems from the 34 years of clinical experience.
6 Q Do you have anybody in your office that assists you
7 with making the life expectancy determinations?
8 A No.
9 Q Do you have a medical assistant who reviews the
10 medical records and summarizes them for you?
11 A No.
12 Q Are you the only person in your office that reviews
13 the information that Life Partners sends to you regarding
14 each of the insureds?
15 A Yes.
16 Q Do you use anything other than your clinical -- 34
1 7 years of clinical experience to make the life expectancy
18 determination?
19 A There are life expectancy tables that -- from
2 0 several sources. I use one from Health and Human Services.
21 They give you a starting point for the person's life
22 expectancy. That's used. And then depending on their
23 medical record is how their life expectancy is generated.
24 Q The Health and Human Services, is that the State of
25 Nevada or the federal?
Page 29
1 A Federal,
2 Q And is that -- when you say it's a starting point,
3 does the table reflect age, sex and its generally thought
4 good health, here's what the life expectancy would be?
5 A It reflects age and sex and the health of the
6 entire population.
7 Q Are these also known as actuarial tables?
8 A I'm not sure.
9 Q Have you had any actuarial training?
10 MR. HILBERT: Object to form.
11 THE WITNESS: No.
12 BY MS, STRETESKY:
13 Q So why don't you walk me through. You get a
14 medical record for an insured. What do you do? Tell me how
15 your review is.
16 A Well, I determine the patient's age and sex and,
17 depending on what their expected from the table life
18 expectancy would be, determine that.
19 For example, let's say it's eight years. Then I
20 begin to look at the medical record. Depending on their
21 diagnoses, if they have un-resectable pancreatic cancer,
22 their life expectancy is going to be six months.
23 If both parents live to 105, their life expectancy
24 is going to be 18 to 20 years. I look at the medications
25 that they're taking. I look at the lifestyle. If they
8 (Pages 26 to 29)
 Page 30 Page 32
1 smoke, that's not good. And after putting all those 1 — titled "Calculation of Life Expectancy," would you say
2 together, I come to an opinion and give my estimate. 2 this accurately reflects how you go about making your life
3 Q And I may be making this seem more mathematical 3 expectancy determination?
4 than it is, so tell me if I'm wrong. 4 MR. HILBERT: Object to form.
5 But do you kind of go through a mathematical 5 THE WITNESS: I have difficulty defining this
6 equation of minus six months for smoking plus 20 years for 6 paragraph. As I mentioned, I take into consideration all the
7 having good genes? Do you go through that kind of analysis? 7 factors that we talked about. If that's what this paragraph
8 A It's not that precise. I mean, you have to take 8 is saying, then it's an accurate ...
9 everything together, if somebody has longevity in their 9 BY MS. STRETESKY:
10 family but is a heroin addict, that's, you know, going to be 10 Q Did you draft this paragraph?
11 against them, so you have to put everything in the picture 11 A No, I did not.
12 before you make the determination. 12 Q Did you assist in drafting it?
13 Q And your factors for things like being a heroin 13 A No.
14 addict or certain medical ailments, is your amount of life 14 Q If we move down to 5.11. it says ''Representations
15 expectancy placed on those particular circumstances based on 15 and Warranties." There's a handwritten note on the bottom in
16 your 34 years as practicing as a physician? 16 addition to the last sentence. It looks like something got
17 MR. HILBERT: Object to form. 17 cut off and it says, "Cassidy shall make all life expectancy
18 MR. MURPHY: Do you understand? 18 prognostications based on his own independent medical
19 THE WITNESS: I'm not sure. 19 judgment and shall not be influenced by any other
20 BY MS. STRETESKY: 20 considerations." What other considerations could there be?
21 Q Okay. You're starting with a table that gives you 21 A Well, the sentence was not a sentence. That's why
22 sex, age, here's what the life expectancy is. Moving beyond 22 that was added.
23 that table, you're factoring in the circumstances of each 23 Q Uh-huh.
24 individual insured. Correct? 24 A I suppose any other considerations except the
25 A That is correct. 25 medical record.

Page 31 Page 33
1 Q Okay. And you're making either additions, month -- 1 Q Do you receive any -- strike that.
2 in months, additions to the life expectancy on the table or 2 Have you ever received any information other than
3 subtracting months or years from the life expectancy that's 3 the information that is detailed in Section 3.3 with regard
4 found on the table based on individual circumstances unique 4 to an insured?
5 to each insured. 5 A All I receive are the medical records.
6 A It's not necessarily in that fashion. Again, 6 Q And they are medical records from physicians which
7 depending on their medical diagnoses, some diseases have a 7 may include forms filled out by the insured, a health history
e fairly well accepted prognosis, and I mentioned one a moment 8 form, maybe?
9 ago, pancreatic cancer. 9 A Yes.
10 Q Uh-huh. 10 MR. HILBERT: Object to form.
11 A And that aspect of it is stems from my 11 BY MS. STRETESKY:
12 experience. 12 Q How much time on average do you take reviewing the
13 Q And when you say that some diagnoses have a very 13 medical records for an insured in developing your life
14 well established life expectancy diagnosis, are those found 14 expectancy evaluation?
15 in medical journal articles or -- 15 MR. HILBERT: Object to form.
16 A They're found in textbooks and in journal articles. 16 THE WITNESS: Extremely variable. The records vary
17 Q Do you often find yourself reviewing textbooks or 17 from a few pages to more than a thousand.
18 medical journal articles when reviewing the medical history 18 BY MS. STRETESKY:
19 of an insured? 19 Q What would be your average, do you think?
20 A If I am not familiar with whatever diagnosis the 20 A I don't know. It's extremely variable.
21 patient might have. 21 Q Could you turn the page, please, sir.
22 Q How often does that occur, would you say, that 22 A (Witness complies.)
23 you're not familiar with a diagnosis? 23 Q Section 6.2 says -- is titled "Reasonable
24 A Rarely. 24 Precautions." What reasonable precautions have you taken to
25 Q Section 3.4 of the calculation of life expectancy 25 ensure that the documentation, information and materials will

9 (Pages 30 to 33)
 Page 34 Page 36

1 not be disclosed to others? 1 A That is correct.

2 A They are under lock and key, They're never viewed 2 Q Why did you stop preparing them for the other
3 by anyone except me. 3 company?
4 Q And maybe the guy who is downloading them? 4 MR. HILBERT: Object to form.
5 A Huh? 5 THE WITNESS: I am an independent contractor
6 Q And maybe your office manager who is downloading 6 consultant. I did not stop or start. I was contacted.
7 them from the computer for you? 7 BY MS, STRETESKY:
8 A No, he doesn't view them. 8 Q How did the other company know to contact you?
9 Q How long do you retain the medical records provided 9 A I do not know.
10 to you from Life Partners? 10 Q Does the name "Beneficial Assurance" -- was that
11 A I would have to ask the office manager. 11 the other company?
12 Q Would you retain them for as long as maybe you 12 A I do not know.
13 would retain a patient's record, one of your patients that's 13 Q How about "Mutual Benefits"? Does that sound --
14 coming to see you record? 14 A I do not remember the name of the companies.
15 A Again, 1 would have to ask him. I can say that I 15 Q Have you had any specialized training in preparing
16 know they are retained for at least three years but, beyond 1 6 life expectancies?
17 that, don't know, 17 MR. HILBERT: Object to form.
18 Q And is that at least three years due to State of 18 THE WITNESS: Well, what specialized training
19 Nevada recordkeeping requirements for medical doctors? 19 exists? I'm sorry. I don't mean to ask you questions, but
20 A No, no particular reason. 20 only, urn, that of a clinical physician.
21 Q Are you aware of any State of Nevada Board of 21 BY MS. STRETESKY:
22 Medical Examiners requirements for recordkeeping and record 22 Q Is it your opinion that any clinical physician
23 retention? 23 would be able to perform similar functions as you are for
24 A Concerning my own patients, yes. 24 Life Partners?
25 Q And what is that length of time that you need to 25 A If he were experienced and in a general field,

Page 35I Page 37

1 retain them? I family practice, internal medicine, a broad field.

2 A Five years, I believe. 2 Q Do you receive a 1099 from Life Partners?
3 Q Section 8.2 at the bottom of the page talks about 3 MR HILBERT: Object to form.
4 release of information and it says, "Should any life 4 THE WITNESS: Yes.
5 expectancy report." Is it your understanding that what you 5 BY MS. STRETESKY:
6 are preparing is the life expectancy report? 6 Q When you communicate with Life Partners, what do
7 A I prepare a summary of the medical records that 7 you provide them in that communication?
8 includes my opinion on the patient's life expectancy. 8 A The letter that is a summary of the medical records
9 Q Have you provided written approval for release of 9 and my opinion on the life expectancy of the person that I'm
10 any life expectancy report? 10 looking at.
11 A No. 1 Q I'm gonna show you -- I'm gonna hand you what's
12 Q Have you provided written approval for release of 12 called a confidential case history that is given by Life
13 any portion of your medical summary? 13 Partners to potential investors.
14 A No. 14 MS. STRETESKY: If we could have this marked as
15 Q Do you prepare life expectancy determinations for 15 Exhibit 2, please.
16 any other company? 16 (Deposition Exhibit 2 marked for
17 A I have. 17 identification.)
18 Q Which company or companies? 18 BY MS. STRETESKY:
19 A I can't remember. It's been some time. 19 Q And as you can see at the bottom, it says "Summary
20 Q How long ago approximately? 20 of Medical History." If you could read that. And while I
21 A Two or three years. 21 don't -- I don't expect you to remember any particular
22 MR, HILBERT: Object to form. 22 medical summary that you've provided to Life Partners.
23 BY MS. STRETESKY: 23 But if you could look at that and let me know if
24 Q And this was at a time when you were preparing 24 this is typical of the information you would have provided to
25 these for Life Partners? 25 Life Partners in your letter.

10 (Pages 34 to 37)
 Page 38 Page 40

1 (Witness reviewing document.) 1 A No. I'm talking about me.

2 THE WITNESS: It contains some of the information 2 Q Okay. That's what I wanted clarification on.
3 that I would commonly put in my letter, but I did not write 3 MR. HILBERT: Object to form.
4 this. 4 BY MS, STRETESKY:
5 BY MS. STRETESKY: 5 Q So you're advising in your letters to Life Partners
6 Q What -- what information is missing that would 6 that you should not be the sole source of a life expectancy
7 normally be found within your letter? 7 determination used by them?
8 A Depends on what information was in the medical 8 A That's what the disclaimer on the letter says, yes.
9 record. 9 MR. HILBERT: Object to form.
10 Q What's the typical length of your letters to Life 10 BY MS. STRETESKY:
11 Partners? 11 Q Are you aware of any other provider that's also
12 A One page. 12 provide life expectancy determinations to Life Partners?
13 Q Can you, looking at this summary of medical 13 A No.
14 history, look at it and with your medical experience be able 14 Q Do you have --
15 to think the life expectancy of four to five years is 15 MR. HILBERT: I need four minutes. I've got an
16 reasonable? 16 emergency call here. Bear with me. Take a break.
17 MR. HILBERT: Object to form. 17 (Recess taken.)
18 THE WITNESS: It -- it is conceivable but this is a 18 BY MS. STRETESKY:
19 -- this is not the complete medical record. 19 Q Have you ever physically examined any of the
20 BY MS. STRETESKY: 20 insureds?
21 Q And so this wouldn't give you enough information to 21 A No.
22 determine whether or not the life expectancy of four to fi ve 22 Q It's a pure paper review?
23 years was reasonable? 23 A That's correct -- well, record review.
24 A Your determination is an educated guess. A 24 Q I've touched on it a bit. But what if the medical
25 determination of four to five years is possible. I would 25 information that you have is five years old? Would you be

Page 39 Page 41

1 need to look at the entire record to see if this was an 1 able to make a determination based on that old of a record?
2 accurate reflection. 2 MR, HILBERT: Object to form.
3 Q And when you perform your duties for Life Partners, 3 THE WITNESS: Number one, I've never gotten a
4 you are using that degree of skill and attention that a 4 record like that. Number two, it would depend on the
5 reasonable physician would exercise in estimating life 5 person's diagnosis. If they had amyotrophic lateral
6 expectancy? 6 sclerosis, possibly.
7 MR. HILBERT: Object to form. 7 BY MS. STRETESKY:
8 THE WITNESS: I would think so, yes. 8 Q Okay. And in a perfect world how updated would you
9 BY MS. STRETESKY: 9 like the medical records to be?
10 Q And are you making these determinations, urn, with a 10 MR. HILBERT: Object to form.
11 reasonable degree of medical certainty? THE WITNESS: I'm sorry. Could you repeat the --
12 MR, HILBERT: Object to form. 12 BY MS. STRETESKY:
13 MR. MURPHY: Objection, Calls for a legal 13 Q Sure. If it were a perfect world, how updated
14 conclusion. You don't have to answer. 14 would you like the medical records or up to date would you
15 MS. STRETESKY: Yes, he does. 15 like the medical records?
16 BY MS. STRETESKY: 16 MR. HILBERT: Object to form.
17 Q Is it your opinion that you're estimating these 17 THE WITNESS: As up to date as possible.
18 within any reasonable degree of medical certainty? 18 BY MS. STRETESKY:
19 A There is a disclaimer on all of my letters 19 Q Have you ever had an occasion where Life Partners
2 0 indicating that no single source should be depended upon in 20 has transmitted medical records and have made statements like
21 making a life expectancy determination. It points out that 21 we're thinking this one is a four- to five-year life
22 many other things can have an effect on a person's life 22 expectancy range?
23 expectancy. 23 A Never.
24 Q Could you explain that. And by "single source," 24 Q Do you perform any quality control on the life
25 are you talking about the medical history is not a -- 2 5 expectancy determinations that you do?

11 (Pages 38 to 41)
 Page 42 Page 44

A I'm not sure what you mean by "quality control." 1 seemingly have a summary of medical history similar to each
2 MR. HILBERT: Object to form. 2 other with vastly different life expectancy determinations,
3 BY MS. STRETESKY: 3 you wouldn't be able to explain that --
4 Q How do you ensure consistency with ranges? And 4 MR. HILBERT: Object to form.
5 what I mean is how do you ensure that like ages, same sex, 5 BY MS. STRETESKY:
6 similar diagnoses end up with the same or similar life 6 Q just by looking at the medical summary?
7 expectancy range? 7 THE WITNESS: Obviously, the explanation is that
8 MR. HILBERT: Object to form. 8 the entire record was different between the two patients,
9 THE WITNESS: The life expectancies are determined 9 BY MS. STRETESKY:
10 on the basis of my clinical experience and the life 10 Q But you can't tell that on a summary of medical
11 expectancy table that we start with. 11 history that Life Partners has provided on the confidential
12 BY MS. STRETESKY: 12 case histories?
13 Q Do you ever go back and ask Life Partners how 13 MR. HILBERT: Object to form.
14 you're doing? 14 THE WITNESS: No.
15 MR. HILBERT: Object to form, 15 BY MS. STRETESKY:
16 THE WITNESS: No. 16 Q How do you determine how much information you put
17 BY MS. STRETESKY: 17 into your letter providing the medical summary and life
18 Q Do you know how accurate your life expectancy 18 expectancy determination to Life Partners?
19 determinations are or have been? 19 MR. HILBERT: Object to form.
20 MR. HILBERT: Object to form. 20 THE WITNESS: As I mentioned before, the age of the
21 THE WITNESS: No. 21 patient, their sex, their medical diagnoses, their lifestyle,
22 MS. STRETESKY: This is gonna take me a minute 22 their family histories. These are taken into consideration
23 because I don't have my assistant with me -- now 1 do. 23 along with their current treatment and then my clinical
24 If 1 can mark, please, this as Exhibit 3. 24 opinion as to how long I think they will live.
25 25

Page 43 Page 45

1 (Deposition Exhibit 3 marked for 1 BY MS. STRETESKY:

2 identification.) 2 Q And I'm sorry, because I think you answered a
3 BY MS. STRETESKY: 3 question that I wasn't asking.
4 Q If you could read the medical summary found on 4 With the information that you give to Life Partners
5 Exhibit 3. 5 on your one-page letter, how do you determine which diagnoses
6 (Witness reviewing document.) 6 to include into the letter and which to leave out?
7 BY MS. STRETESKY: 7 A I don't leave out any pertinent diagnosis.
8 Q And then comparing it to the medical summary on 8 Q What would be an impertinent diagnosis that you
9 Exhibit 2, would you say that, aside from age, that they're 9 would leave out?
10 medically situated similarly? 10 MR. HILBERT: Object to form,
11 MR. HILBERT: Object to form. 11 THE WITNESS: A non-melanoma skin cancer 15 years
12 THE WITNESS: I couldn't possibly say that. It 12 previously.
13 depends on the entire medical record. 13 BY MS. STRETESKY:
14 MR. HILBERT: I hope you got my objections. 14 Q Would it be fair to say that impertinent would be
15 BY MS. STRETESKY: 15 something that doesn't bear on their life expectancy?
16 Q So looking at the summary of medical histories from 16 MR. HILBERT: Object to form.
17 each, with this being your only information, you as a 17 THE WITNESS: That's correct.
18 34-year-old -- not a 34-year-old -- a 34-year physician 18 MS. STRETESKY: Please mark this as Exhibit 4.
19 wouldn't be able to determine or make a judgment as to why 19 (Deposition Exhibit 4 marked for
20 one has a life expectancy of four to five years and the other 20 identification.)
21 has a life expectancy of, urn, five years plus? 21 BY MS. STRETESKY:
22 MR. HILBERT: Object to form, 22 Q And, again, I understand that you've not seen this
23 THE WITNESS: No. 2 3 before, nor have you prepared it, but if you could read the
24 BY MS. STRETESKY: 24 summary of medical history with specific attention to the
25 Q Okay. And if I were to show you two more that 25 last -- or the second paragraph.

12 (Pages 42 to 45)
 Page 46 Page 48

1 (Witness reviewing document.) 1 expectancy of the person -- strike that.

2 BY MS. STRETESKY: 2 In looking at the summary of medical history for
3 Q It states, "L.P.I.'s reviewing physician states 3 ~NI which is Exhibit 4, are any of the diagnoses
4 that the insured's actuarial life expectancy would be an 4 listed fatal?
5 additional 2.3 years." What does that mean? A That would depend on other factors that could be
6 MR. HILBERT: Object to form. 6 present in the medical record.
7 THE WITNESS: 1 didn't write that. 1 don't know 7 Q Can you give me an example?
8 what it means. 8 A Certainly, If her hypertension was 250 over 150,
9 BY MS. STRETESKY: 9 that would be fatal.
10 Q Have you -- do you recall -- have you ever in one 10 Q Okay. Would it be classified as hypertension or
11 of your letters transmitting the medical summary and the life 11 something --
12 expectancy determination to Life Partners made statements 12 A You could use the word "hypertension" for that.
13 regarding the actuarial life expectancy of an insured? 13 Q Would there be another word you could use?
14 A Yes, I have. 14 A "Malignant hypertension."
15 MR. HILBERT: Object to form. 15 Q And would that be more accurately describing the
16 BY MS. STRETESKY: 16 hypertension?
17 Q And what typically do you -- what's the typical 17 A At that level.
18 statement you make about the actuarial life expectancy? 18 Q And you would probably in your letters describe it
19 MR. HILBERT: Object to form. 19 with that amount of accuracy?
20 THE VvTFNESS: I subtract their age from the age on 20 A If I had a patient who had that type of pressure,
21 the table that would predict their life expectancy. 21 that would he a term I would use to describe it.
22 BY MS. STRETESKY: 22 Q Okay. Have you ever turned down or asked for
23 Q And so in the letter to Life Partners you provide 23 additional records where maybe the primary care physician's
24 them this is what their life expectancy is from the table and 24 records weren't as detailed as maybe what you would be
25 here is what my determination is based on their medical 25 keeping in your practice?

Page 47 Page 49

1 records? 1 M R. HILBERT: Object to form.

.

2 A That's correct. 2 THE WITNESS: Depends on what the medical record

3 MR. HILBERT: Object to form.
4 BY MS. STRETESKY:
5 Q But you don't know what Life Partners meant when it
6 said that you stated that the insured's actuarial life
7 expectancy would be an additional 2.3 years?
8 MR. HILBERT: Object to form.
3 said. As I mentioned before, referring to a mass and a
4 potential biopsy but not giving any information about a
5 subsequent biopsy would be an occasion where I would request
6 further information,
7 BY MS. STRETESKY:
8 Q With insureds who do have HIV and/or full blown
-

9 MR. MURPHY: Asked and answered. 9 A.1.D.S., how much does the T-cell count account for in your
10 THE WITNESS: I did not write this. 10 life expectancy determination?
11 BY MS. STRETESKY: 11 A Its hard to quantify that. Certainly a low T-cell
12 Q Have you ever made a statement like that? 12 count places a person at greater danger of opportunistic
13 A Yes, I have. 13 infections.
14 Q And what did you mean by it when you made that 14 The therapy of A.I.D.S. is changing so quickly that
15 statement? 15 its difficult to quantify a particular number and weight it.
16 A That my range for the patient's life expectancy in 16 You have to look at the entire picture. If someone has a
17 my opinion would be two to four years, 17 high T-cell count but happens to have an unresponsive Kaposi
18 MR. HILBERT: Object to form. 18 sarcoma, that's bad.
19 BY MS. STRETESKY: 19 Someone with a low T-cell count and no signs of an
20 Q Do you ever recall making a statement that 20 opportunistic infection, he has a chance to respond well.
21 someone's life expectancy would be an additional 2.3 years? 21 You have to look at the whole picture.
22 MR. HILBERT: Object to form. 22 BY MS. STRETESKY:
23 THE WITNESS: I do not recall. 23 Q How much does the viral load play into the life
24 BY MS. STRETESKY: expectancy determination?
25 Q Okay. Could it be that the actuarial life 25 MR. HILBERT: Object to form.

13 (Pages 46 to 49)
 Page 50 Page 52
1 THE WITNESS: Not as much. You want to see some 1 BY MS. STRETESKY:
2 correlation between the T-cell count recovering and the viral 2 Q Would the majority take 30 minutes to review?
3 load going down, but it's not always that way. 3 MR. HILBERT: Same objection.
4 BY MS. STRETESKY: 4 MR. MURPHY: This is becoming harassing.
5 Q So can you fairly quickly move through the medical 5 BY MS. STRETESKY:
6 record of an A.I.D.S. insured or an insured with A.I.D.S., 6 Q Did you have an answer?
7 rather than maybe an elderly person who's got a longer list 7 A Same answer.
8 of medical diagnoses? S MS. STRETESKY: I'm done with my questions.
9 MR. HILBERT: Object to form. 9 MR. HILBERT: I don't have any questions.
10 THE WITNESS: It depends on the record. If 10 MR. MURPHY: The only thing I'd like the record to
11 someone's lifestyle is extremely dangerous, it -- it depends 11 reflect is as to all the objections that Mr. Hilbert has
12 on the record. 12 made, that I join in on behalf of Dr. Cassidy.
13 BY MS. STRETESKY: 13 MR. HILBERT: Do you want to join in on my
/4 Q And do you always have information on the insured's 14 objections, Tom? Oh, now he's snoozing. He usually joins my
15 lifestyle in the records that you get? 15 objections too. You can put that in the record and he can
16 A Not always. 16 take it out if he wants to.
Q About what percentage of time do you -- 17 MS. STRETESKY: Now these questions are for counsel
18 A I don't know. 18 on the record. Could you direct me to the HIPAA section that
19 MS. STRETESKY: Can we take a five-minute break, 19 you are relying on that these would not be disclosable?
20 because I think I'm ready to wrap up? 20 M.R. MURPHY: I included HIPAA but it's also
21 MR. MURPHY: Okay. 21 specifically NRS Section 49.215.
22 (Recess taken.) 22 MS. STRETESKY: And is that a copy of the Nevada
23 BY MS. STRETESKY: 23 Revised Statutes?
24 Q You'd mentioned that you can't really quantify how 24 MR. MURPHY: Uh-huh.
25 much time you spend on any given file, but are there any 25 MS. STRETESKY: Would you mind if I could just look

Page 51 Page 53
1 files that are small enough or records that are small enough at 49.235.
2 that you take five minutes to review? 2 MR. MURPHY: Certainly. As to who may claim the
3 MR. HILBERT: Object to form. 3 privilege?
4 THE WITNESS: If the record were three pages long 4 MS. STRETESKY: Yes. For the record, we disagree
5 it would probably take me five minutes. 5 that Nevada Revised Statute 49.235, who may claim the
6 BY MS. STRETESKY: 6 privilege, extends to Dr. Cassidy in his capacity as a
Q Would that be long enough to make -- would that 7 physician merely reviewing medical records for a third party
8 contain enough information to make a life expectancy 8 who is not the patient.
9 determination? 9 As sub two says, the person who was the doctor may
10 MR. HILBERT: Object to form. 10 claim the privilege but only on behalf of the patient. His
11 THE WITNESS: It could. 11 authority to do so is presumed in the absence of evidence to
2 BY MS. STRETESKY: 12 the contrary.
13 Q Would you be able to estimate that -- the 13 And we would also like the record to reflect that
14 percentage of files that you receive that would take five 14 our reading of HIPAA, specifically 45 CFR 164.512(e) allows
5 minutes long to review? 15 disclosure of medical records in a judicial proceeding such
16 A No. 16 as this one.
17 MR. HILBERT: Object to form. 17 MR. MURPHY: You may make the appropriate motion
18 BY MS. STRETESKY: 18 before the court.
19 Q Do the majority take five minutes to review? 19 MS. STRETESKY: Yes.
20 MR. HILBERT: Object to form. 20 M.R. HILBERT: Are we all done?
21 THE WITNESS: They're all different. 21 MS. STRETESKY: I think so.
22 BY MS. STRETESKY: 22 MR. MURPHY: Plead send the transcript to me.
23 Q Would the majority take 20 minutes to review? 23 MR. HILBERT: And I want a condensed, whatever you
24 MR. HILBERT: Object to form. 24 call it. Just a condensed.
25 THE WITNESS: They are all different. 25 MR. MURPHY: I'll take the condensed version and

14 (Pages SO to 53)
 Page 54 Page 56

1 also send the original to me and I'll proceed with the 1 STATE OF NEVADA )
2 signing. 2 ) ss.
3 MS. STRETESKY: I would prefer a condensed, and can 3 COUNTY OF WASHOE )
4 you do it electronically? 4
5 THE REPORTER: Yes. I, CHRISTINA MARIE HERBERT, a Certified Court Reporter
6 MR. TENENBAUM: Thank you. I would like a 6 in and for the State of Nevada, do hereby certify:
7 condensed E-Tran transcript and if the reporter could send it 7 That f was personally present for the purpose of acting
8 to ATT at Tlawfirm dot-corn. 8 as Certified Court Reporter in the matter entitled herein;
9 (Whereupon, deposition was concluded at 9 that the witness was by me duly sworn;
10 2:59 p.m.) 10 That said transcript which appears hereinbefore was
11 -o0o- 11 taken in verbatim stenotype notes by me and thereafter
12 12 transcribed into typewriting as herein appears to the best of
13 13 my knowledge, skill, and ability and is a true record
14 DONALD CASSIDY, M.D. 14 thereof.
15 15
16 16
17 17 Christina Marie Herbert, CCR #641 (NV), CSR #11883, (CA)
18 18
19 19 -o0o-
20 20
21 21
22 22
23 23
24 24
25 25

Page 55 Page 57

1 STA'T'E OF NEVADA ) 1 CHANGES/CORRECTIONS/NOTES

2 SS. 2 PAGE LINE
3 COUNTY OF WASHOE 3
4 4
5 , a notary public 5
6 in and for the County of 6
7 , State of 7
8 . do hereby certify: 8
9 That on the day of 9
10 10
11 2008, before Inc personally appeared the witness whose 11
12 deposition appears herein; 12
13 That the deposition was read to or by the witness: 13
14 That any changes in form or substance desired by the 14
15 witness were entered upon the deposition by the witness;
That the witness thereupon signed the deposition under 16
17 penalty of perjury, 17
18 18
19 DATED: At: 19
20 20
21 this day of 21
22 2008, 22
23 23
24 24
25 Notary Public 25

15 (Pages 54 to 57)
 ------ -------

MEDICAL CONSULTING AGREEMENT

THIS MEDICAL CONSULTING AGREEMENT (the "Agreement") is made and entered

into as of this IOthday of February, 2008, by and between, LIFE PARTNERS, INC. (the
"Company") and DR. DONALD CASSIDY, M.D., ("Cassidy").

RECITALS

Whereas, the Company desires to engage Cassidy to provide certain life

expectancy underwriting services with respect to certain individuals whose lives are insured
under life insurance policies ("insured lives"), subject to the tetuis and conditions of this
Agreement.

Therefore, for and in consideration of the mutual benefits and promises herein
described, and for other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto agree as follows:

ARTICLE L CONSTRUCTION

SECTION 1.1 Usage of Terms. The words "hereof," "herein" and "hereunder" and
words of similar import when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; Section, subsection and exhibit schedule
references contained in this Agreement are references to sections, subsections, exhibits and
schedules in or to this Agreement unless otherwise specified; with respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words importing any
gender include the other gender; references to "writing" include printing, typing, lithography and
other means of reproducing words in a visible form; references to agreements and other
contractual instruments include all subsequent amendments, amendments and restatements and
supplements thereto or changes therein entered into in accordance with their respective terms and
not prohibited by this Agreement; references to Persons include their permitted successors and
assigns; references to laws include their amendments and supplements, the rules and regulations
thereunder and any successors thereto; and the term "including" means "including without
limitation."

ARTICLE II. APPOINTMENT

SECTION 2.1 Appointment. The Company hereby appoints and engages Cassidy as a
life expectancy provider with respect to the insured lives specified to Cassidy by the
Company for the period commencing on the date hereof until the expiration or termination of
this Agreement pursuant to Article VII hereof, subject to the terms and conditions of this
Agreement.

ARTICLE III. RIGHTS AND DUTIES OF CASSIDY

SECTION 3.1 Standard of Care. Cassidy shall perform his duties under this agreement
with reasonable care, using that degree of skill and attention that a reasonable physician would
exercise in estimating the life expectancy of an insured, including compliance with all applicable
state and federal regulations.
 SECTION 3.2 Errors and Omissions Policy. Cassidy agrees to maintain an errors and
omissions insurance policy with coverage no less than $1 million per occurance.

SECTION 3.3 Delivery of Certain Information to Cassidy. Prior to the commencement

of any obligation upon Cassidy to provide the services contemplated by this Agreement with
respect to any insured life, the Company shall deliver or cause to be delivered to Cassidy all of
the following information for each insured with respect to the related life insurance policy: (i)
the name, (ii) the sex, (iii) the date of birth, (iv) the attending physician, (v) all medical records
available which shall be the most current available but at least within the past twelve (12)
months of the date of the request for a life expectancy and minimally three (3) years of records
and preferably as many records as are available, provided, however that if Cassidy determines
that there are insufficient records to underwrite a life expectancy, Cassidy shall not be
obligated to prepare a life expectancy and shall so notify the Company, and (vi) an authorization
for protected health information form that has language that would include, or be capable of
referring to, life expectancy underwriters or providers and which has been executed and dated by
the insured and that has not been revoked by the insured or otherwise expired by law.

SECTION 3.4 Calculation of Life Expectancy. For each insured life, Cassidy will
prognosticate the average life expectancy of the respective insured(s) based on standard
mortality tables and adjusted based on the medical condition of the insured(s) and the clinical
experience and professional medical judgment and opinion of Cassidy. Said opinion and
prognostication shall be made independently and without the undue influence of any person or
entity. Upon request, Cassidy shall provide the Company with a written report documenting
Cassidy's opinion, prognostication and evaluation of an insured.

ARTICLE TV. COMPENSATION

SECTION 4.1 Compensation. (a) As compensation for the medical underwriting

services to be rendered by Cassidy hereunder, the Company shall pay to Cassidy a monthly
retainer of $15,000 per month. In consideration for said retainer, the Company may present an
unlimited number of files for evaluation and life expectancy calculation by Cassidy. As
additional consideration, the Company shall pay to Cassidy a fee of $500 per insured within 7
days after the closing of a life settlement transaction.

ARTICLE V. REPRESENTATIONS, WARRANTIES AND COVENANTS

SECTION 5.1 Representations and Warranties of Cassidy. Cassidy, as of the date

hereof, hereby represents to the Company that he is a licensed, practicing physician in good
standing with the State Medical Board for the State of Nevada. Cassidy shall make all life
expectancy prognostications based on his own independent medical judgment and shall not be
influenced by any e' 71/E--v.-- e .?7,50 5

ARTICLE VI. CONFIDENTIALITY

SECTION 6.1 General Duty. Cassidy and the Company hereby agree that all
documentation, materials and information provided by, or made available by, the Company
and by Cassidy for the performance of Cassidy's obligations hereunder shall be used solely for
the purposes contemplated by this Agreement and that all such documentation, information
and materials shall be deemed proprietary; all information and materials shall be received,
utilized, and maintained in confidence.

SECTION 6.2 Reasonable Precautions. Subject to Section 6.4, the Company and
Cassidy shall take such precautions as may reasonably be necessary to protect such
documentation, information and materials from disclosure to others or from use by itself or
others for any purpose inconsistent with this Agreement.

SECTION 6.3 Dissemination of Certain Information. Cassidy and the Company shall at
all times comply with all laws and regulations affecting insureds whose life expectancies are
being evaluated including but not limited to laws and regulations regarding the privacy of any
insured and the maintenance of all information obtained by the Company and/or Cassidy in
the performance of their duties in accordance with applicable laws and regulations concerning
the dissemination of such information.

SECTION 6.4 Confidentiality of Reports Any report that the Company receives from
Cassidy is intended for the specific use of the Company or individual signing this Agreement
ONLY, and may be distributed to persons or entities in connection with the transaction in
which the original life expectancy report was requested, but shall not otherwise be distributed to
any other party, without the written consent of Cassidy or as may be required by competent
regulatory authority or judicial fiat.

ARTICLE VII. TERM; TERMINATION

SECTION 7.1 Term; Termination. This agreement will automatically renew from year
to year unless terminated by the Company or Cassidy by delivery of written notice to the other
party of a change in any applicable law or regulation that causes it to be illegal for such party to
continue performing under this Agreement, (c) terminated by Cassidy or the Company by
thirty (30) days written notice thereof to Cassidy or Company, depending upon whoever is the
initiating party.

SECTION 7.2 Files and Records Upon Termination. Immediately upon termination by
Cassidy or the Company, Cassidy shall destroy all files and records retained by Cassidy in
connection with the performance of its duties and obligations under this Agreement, unless
otherwise required by law.

ARTICLE VIII. LIMITED LIABILITY

SECTION 8.1 Evaluation Limitation. Evaluations to determine life expectancy are based
on the understanding of current available medical records provided at the time of evaluation.
Cassidy makes no representation that any individual will expire on or near the time period
indicated on our report. The life expectancy of any individual may be impacted positively or
negatively by factors that change following the date of the evaluation. Every effort is made to
anticipate future favorable or adverse changes in medical conditions, but it is not possible to
make representations, guarantees or assurances after the date of any evaluation.

SECTION 8.2 Release Limitation. Should any life expectancy report that is provided to
the Company by Cassidy be released to any person or entity, and such release is not approved
with the written consent of Cassidy, then Cassidy assumes no liability for the use or content of
any such life expectancy report beyond this Agreement or the disclaimer that is on any such life
expectancy reports other than with respect to such parties listed in Section 6.4. Should Cassidy
consent in writing to the release of a life expectancy report that the Company received, Cassidy
shall have no liability and shall be held harmless for any use for which the approved party uses
the life expectancy report.

ARTICLE IX. MISCELLANEOUS

SECTION 9.1 Amendment. This Agreement may be amended from time to time only by
the written mutual agreement of the Company and Cassidy.

SECTION 9.2 Governing_Law: Submission to Jurisdiction; Jury Waiver.

(a) Governing Law. THIS AGREEMENT SHALL IN ALL RESPECTS BE

GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEVADA, WITHOUT
REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

(b) Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES

ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY
ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION
OR CAUSE OF ACTION (A) ARISING OUT OF OR IN ANY WAY
RELATED TO THIS AGREEMENT, OR (B) IN ANY WAY
CONNECTED WITH OR PERTAINING OR RELATED TO OR
INCIDENTAL TO ANY DEALINGS OF THE PARTIES TO THIS
AGREEMENT OR IN CONNECTION WITH THIS AGREEMENT OR
THE EXERCISE OF ANY PARTY'S RIGHTS AND REMEDIES
UNDER THIS AGREEMENT OR OTHERWISE, OR THE CONDUCT
OR THE RELATIONSHIP OF THE PARTIES HERETO, IN ALL
OF THE FOREGOING CASES WHETHER NOW EXISTING OR
HEREAFTER ARISING AND WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE.

SECTION 9,3 Notices. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at or mailed by
overnight mail using a nationally recognized carrier or by registered mail, return receipt
requested, to:

Contact Person: LaDonna Johnson

Address 204 Woodhew Dr.
City, State, Zip: Waco, TX 76712
Email Address: liohnson@lifepartnersinc.eorn
Telephone Number: 254-751-7797
Contact Person: Dr. Donald Cassidy
Address: 75 Pringle Way, Suite 711
City, State, Zip: Reno, NV 89502
Email Address: scottcl978@hotmail.com
Telephone Number: 775-324-7022

or at such other address or facsimile number as shall be designated by either such Person in a
written notice to the other.

Notwithstanding the foregoing, notice of breach, service of legal process or other similar
communications shall not be given by electronic mail and will not be deemed duly given under
this Agreement if delivered by such means. Notices, demands and communications hereunder
given by facsimile or electronic mail shall be deemed received upon oral confirmation of receipt
by the addressee or upon the sender's receipt of an affirmative confirmation of receipt thereof by
the addressee.

SECTION 9.4 Severability of Provisions.If any one or more of the covenants,

agreements, provisions or terms of this Agreement shall for any reason whatsoever be held
invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions and terms of this Agreement and shall in no way
affect the validity or enforceability of the other provisions of this Agreement.

SECTION 9.5 Assignment. The teuus and provisions of this Agreement shall be binding
upon and inure to the benefit of the Parties hereto and their respective permitted successors and
assigns. Neither of the Parties hereto shall assign this Agreement or any of the rights created
hereunder without receipt of the prior written consent of the other party. Consent shall not be
unreasonably withheld.

SECTION 9.6 Further Assurances.The Company and Cassidy agree to do and

perform, from time to time, any and all acts and to execute any and all further instruments
required or reasonably requested by the other party hereto more fully to effect the purposes of
this Agreement.

SECTION 9.7 No Waiver: Cumulative Remedies.No failure to exercise and no delay in

exercising, on the part of the Company or Cassidy of any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

SECTION 9.8 Counterparts.This Agreement may be executed in two or more

counterparts (and by different parties on separate counterparts), each of which shall be an
original, but all of which together shall constitute one and the same instrument.

SECTION 9.9 No Petition.Each of Cassidy and the Company, by entering into this
Agreement, hereby covenants and agrees that it will not at any time institute against the other
party, or solicit or incite any other Person to institute for the purpose of joining in any such
 institution against that party, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law. This Section will survive the termination of this Agreement.

SECTION 9.10 Limited Recourse. The obligations of the Company under this
Agreement are solely the obligations of the Company and payable from and recourse only to the
assets of the Company. No recourse shall be had for the payment of any amount owing by
the Company hereunder, or for the payment by the Company of any fee in respect hereof or
any other obligation or claim of or against the Company arising out of or based on this
Agreement or against any partner, owner, beneficiary, officer, director, employee or agent of
the Company; provided, however, that nothing in this Section shall relieve the Company from
any liability which the Company may otherwise have in such capacity for its own gross
negligence or willful misconduct. The agreements in this Section shall survive termination of
this Agreement.

SECTION 9.11 Third-Party Beneficiaries. This Agreement will inure to the benefit of
and be binding upon the parties signatory hereto. Except as otherwise provided in this
Agreement, no other Person will have any right or obligation hereunder.

SECTION 9.12 Merger and Integration. Except as specifically stated otherwise herein,
this Agreement sets forth the entire understanding of the parties relating to the subject matter
hereof, and all prior understandings, written or oral, are superseded by this Agreement. This
Agreement may not be modified, amended, waived or supplemented except as provided herein.

SECTION 9.13 Headings. The headings herein are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision hereof.

SECTION 9.14 No Partnership or Joint Venture. Nothing contained in this Agreement

shall be deemed or construed by the parties hereto or by any third person to create the
relationship of principal and agent or of partnership or of joint venture.

SECTION 9.15 Information and Data. Nothing contained in this Agreement shall be
deemed or construed to limit the Company from utilizing any information or data from this or
any other Agreement in furtherance of its underwriting or business processes and to be utilized
or assimilated in any other form for the benefit of the Company, as long as any individual
personal health information continues to be subject to those protections as provided in this
agreement.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed

by their duly authorized officers the day and year first above written.

LIFE PARTNERS, INC. DR. DONALD CASSIDY

--R. Scott Peden, President Dr. Donald Cassidy,