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1 2 STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS SECURITIES DIVISION 3 4 5 6 7 8 9 IN THE MATTER OF DETERMINING Whether there has been a violation of the Business Opportunity Fraud Act

Kathy Deluges, Jeff Cuba, its agents and employees, S-01-354-02-TO01 11 1. The Court, having reviewed the pleadings, evidence and arguments on the motion for a preliminary injunction, findings of the district court, and the State of Washington's response to this motion, hereby DENIES the motion for a preliminary injunction against Defendants. 3. On January 25, 2005, the parties filed this action in Superior Court to compel Defendants to stop and desist from telexing communications to “members of the public” on the Internet subject to compliance with the Business Opportunity Fraud Act, RCW 46.18.090 to 46.18.195 (hereinafter references to “the Act”). Upon full briefing and trial, the district court granted an injunction against all the Defendants, including Telexing Communications Corporation (Telexing), and all of its agents and employees (“Telexing's Agents and Employees”). The district court also granted an injunction against the Telexing Agents and Employees against the Plaintiffs and all the Telexing Employees as to each other. The parties have made a motion to stay the enforcement of the injunction pending trial. On April 13, 2005, the district court denied the motion to stay the enforcement of the injunction pending trial. The District Court's order of April 13, 2005, provides: 11 2. The parties file the following motions within this time frame, and the trial is hereby scheduled: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] 3. The trial is to be held within the district court's jurisdiction. 4. For the reasons stated in the Order of April 13, 2005, the stay pursuant to Rule 8(e) (8), Rule 30(f) (6) and the injunction, is DENIED. In its motion to stay the enforcement of the injunction pending trial, Telexing specifically requests: a stay of all proceedings until the District Court has determined whether a preliminary injunction can be obtained against Defendants based upon the factual allegations set forth in [the plaintiffs'] pleading, or until the plaintiffs have made their due diligence discovery and discovery has been accomplished to support the allegations set forth in the pleading. Actions are not yet served on your mail account, and payment cannot be made by the bank.

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