Contract analysis

I. Introduction and Deposition Logistics This memorandum summarizes the deposition testimony of Derek Yun, taken on June 22, 2023, at Calderwood & Harkness LLP's San Francisco office located at 555 California Street, 40th Floor, San Francisco, California 94104. Mr. Yun is a former Machine Learning Engineer II at Lumos Analytics Inc. ("Lumos") and is currently employed as Founding Engineer at NovaSpark Technologies In

II. Background and Employment at Lumos Analytics Inc. A. Hire Date and Role Mr. Yun confirmed that he joined Lumos Analytics Inc. in January 2021 as a Machine Learning Engineer II. He testified that his hiring process involved a multi-stage technical interview, including a take-home coding exercise, two live technical interviews, and a behavioral interview. He received an offer letter, which he accepted, and his firs

III. Circumstances of Resignation from Lumos A. Decision to Leave Yun testified that he first began considering leaving Lumos in approximately August or September 2022. He attributed his initial dissatisfaction to what he described as "limited career growth opportunities" and "a desire to be part of something more entrepreneurial." His testimony on this point was notably vague regarding specific timelines and trigger

IV. The Jupyter Notebook Downloads — Key Exfiltration Testimony This section addresses the most consequential portion of the deposition: Yun's testimony regarding the downloading of 47 proprietary Jupyter notebooks to his personal Larkspur Technologies account on October 18, 2022, three days before his resignation from Lumos. The testimony in this area followed a pattern of initial denial, incremental concession unde

V. Use of Lumos Materials at NovaSpark A. Yun's Role at NovaSpark Yun described his role as Founding Engineer at NovaSpark as involving "building ML models for financial signal generation from alternative data." He confirmed that he was one of the first technical hires at NovaSpark — following only Anand (who served as CEO and lead architect) and Mallick (who served as VP of Engineering). He testified that his core r

VI. Communications with Anand and Mallick A. Pre-Departure Communications Yun confirmed that he communicated with both Rajiv Anand and Serena Mallick about the NovaSpark opportunity before resigning from Lumos. He testified that these communications took place over a period of approximately five to six weeks, from mid-September 2022 through his resignation on October 21, 2022. Yun testified that the primary mode of c

VII. NovaSpark Funding and Investor Awareness Yun confirmed that he was aware that NovaSpark received a $12 million seed funding round from Blackpine Capital Partners LP. He identified the managing partner of Blackpine as Franklin Osei. Yun testified that the funding round closed on approximately November 15, 2022, less than one month after the three individual defendants began working at NovaSpark. Yun testified tha

VIII. Credibility Observations and Assessment Based on my attendance at the deposition and review of the rough transcript, I offer the following observations regarding Mr. Yun's credibility as a witness: Pattern of denial followed by concession. Yun's testimony followed a consistent and notable pattern: initial denial or claimed lack of recollection, followed by partial concessions when confronted with documentary or

IX. Key Exhibits Referenced During Deposition The following exhibits were marked and referenced during the course of Mr. Yun's deposition: Copies of each exhibit as marked are being maintained in the deposition exhibit binder and have been entered into the document management system under the appropriate Matter Number. Exhibit 25 is particularly critical and should be cross-referenced against NovaSpark's source code

X. Comparison to Prior Deposition Testimony (Anand and Mallick) Having now completed depositions of all three individual defendants — Rajiv Anand (May 15, 2023), Serena Mallick (June 7, 2023), and Derek Yun (June 22, 2023) — the following comparative observations are warranted: Consistency and candor. Yun's testimony is broadly consistent with, but notably less forthcoming than, Anand's deposition testimony regarding

XI. Recommendations and Next Steps Based on the foregoing summary and analysis of Mr. Yun's deposition testimony, I respectfully recommend the following:

1. Strengthening of trade-secret and breach-of-contract claims. Yun's deposition testimony, particularly the post-departure file-access evidence documented in Exhibit 25, significantly strengthens Lumos's trade-secret misappropriation claim under the California Uniform Trade Secrets Act, Cal. Civ. Code §§ 3426–3426.11, as well as the breach of contract claim predicated on Yun's violations of the PIIAA. His admissions

2. Use of specific admissions regarding file-access dates. I recommend that Yun's admissions regarding file access on November 2, November 9, and November 14, 2022 be used as key evidence of actual use of Lumos trade secrets in NovaSpark's product development. These dates coincide with the critical early development period at NovaSpark and directly link Yun's access to Lumos proprietary materials with NovaSpark's pro

3. Support for damages model. The rapid NovaSpark prototype timeline — approximately three months from the defendants' arrival to a functional demo in January 2023 — supports the unjust enrichment damages model prepared by Meridian Cybersecurity Advisors Inc. Meridian's analysis estimates that NovaSpark saved approximately 14 to 18 months of development time through access to and use of Lumos's proprietary technology

4. Incorporation into mediation brief. I recommend incorporating Yun's deposition testimony into the mediation brief for the anticipated mediation session scheduled for September 6, 2023, before the Honorable Eleanor Voss (Ret.) at Tidewater Mediation Group. Yun's testimony — and in particular his pattern of denial followed by forensic confrontation — will be compelling to a mediator and will strengthen Lumos's negot

5. Additional discovery. I recommend evaluating whether Yun's testimony provides a sufficient basis for additional discovery requests directed at NovaSpark, including: (a) production of NovaSpark's source code repositories and version control logs from October 2022 through January 2023; (b) production of NovaSpark's internal communications (Meridian Solutions, email, and other messaging platforms) referencing Lumos,

6. Coordination with Meridian on code comparison. I suggest coordinating with Naveen Kapoor of Meridian Cybersecurity Advisors Inc. to conduct a detailed analysis comparing the specific content of the 47 Jupyter notebooks (once preserved copies are obtained through the litigation hold) against NovaSpark's produced source code, to establish direct derivation. This analysis would move our case beyond the circumstantial

XII. Distribution and Confidentiality Note This memorandum constitutes attorney work product prepared in anticipation of litigation and is subject to the protections of the attorney-client privilege and the work product doctrine. It reflects the mental impressions, conclusions, opinions, and legal theories of counsel for Lumos Analytics Inc. Distribution of this memorandum is strictly limited to the following individ