Pursuant to the terms of the Investment Banker/Advisor Agreement, SBI-USA, LLC, a division of First Securities USA, agreed to provide Infinium Labs Inc., a development-stage computer gaming company, investment banking services, introductions to certain parties, and mergers and acquisition advice for a period of six months from the date of the agreement. The Investment Banker/Advisor Agreement provided that SBI-USA, LLC would be paid a certain percentage of all financing received for the 12 months following execution of the agreement. Although Infinium Labs Inc. is believed to have raised more than $30 million in debt and equity financing since March 2004, SBI-USA, LLC has not been compensated. SBI-USA, LLC was therefore forced to institute litigation against Infinium Labs Inc. and Timothy M. Roberts, whom SBI-USA, LLC alleges to be the alter-ego of Infinium Labs Inc.
If discovery during the litigation reveals that any third-party investment banking firms improperly induced Infinium Labs Inc. to breach its agreement with SBI-USA, LLC, SBI will consider any and all legal remedies it may have against these parties. "It is unfortunate that we were forced to initiate litigation," said Shelly Singhal, managing member of SBI-USA, LLC, "but SBI provided valuable services to Infinium Labs Inc., for which SBI deserves to be compensated."