Collectors blown away by '06-'07 Heroes and Prospects HSHS cards

April 20, 2007

Dear Collectors;

I feel that I have been silent too long and I feel that I must now comment on the subject of the BAP Draft Redemption Cards, now that the long-awaited Redemption Cards have been sent out to collectors.

For three years (2001, 2002 and 2003) In The Game inserted Draft Redemption Cards in our Be A Player Memorabilia Series. The program was simple but exciting for collectors, giving them the opportunity to redeem for limited edition "rookie cards" depicting the game's brightest young stars selected in the first round of the NHL Draft.

Collectors would pull Draft Cards out of packs and the Draft Cards depicted the 2001, 2002 and 2003 first round draft pick numbers. Collectors had six months to send in their Draft Cards from the date the player who was drafted in the draft position on their card played his first NHL game. In The Game continued to post on our website the status of each player and the expiry date.

So, if a collector pulled a 2001 Draft Pick #3, he would determine who was drafted third at the 2001 Draft. Once that player played his first NHL game, the collector had six months to send in his Draft Card to us to get a hand-numbered Draft Redemption Card of that player. Once the six-month period was over, that Draft Card expired and In The Game published the number of cards redeemed and destroyed the balance.

Both the NHL and NHLPA knew that this program would have to run for a number of years after the year in which the Draft Cards were released. They both approved this program.

In a letter sent to collectors waiting for their Draft Redemption Cards, Ken Kim of the NHLPA said:

"Unfortunately, we were unable to reach a mutually agreeable solution with In The Game and we will now create and distribute cards without In The Game company marks."

He went on to say:

"We plan to begin distribution of the cards by the end of March."

As much as I am pleased that collectors finally got their cards, it is important that I set the record straight. The letter sent by Ken Kim is NOT factual and the thought that Upper Deck and the NHLPA are trying to blame In The Game for any part of this delay is ludicrous.

Here is a little of the history on this matter.

In June 2004, In The Game was informed that our NHLPA license would not be renewed because Upper Deck would be granted an exclusive license with the NHLPA. I wrote to Ted Saskin of the NHLPA in July 2004 and informed him that although I was extremely disappointed that the NHLPA determined that they did not want to renew the In The Game license, the Draft Redemption Program had to be addressed.

This is an excerpt from a letter sent to the NHLPA dated July 28, 2004:

"the Draft Redemption program started in 2001. Seeded in the last three issues of BAP Memorabilia Series are redemption cards for the first round draft picks. Collectors send in their draft redemption cards and when the player plays his first NHL game, we send him that card. More than one third of the cards in the three years of the program have not yet been redeemed as the player has yet to play their first game.

I suggest that Upper Deck continues this program and completes the fulfillment of the past three years. We will send them the deposits we have on hand and the artwork to be used for the future cards."

I heard nothing back from the NHLPA and because of the labor dispute and the cancellation of the 2004-05 season, no players were going to play their first game in the very near future, so there was no sense of urgency to address this issue at that point in time.

Once the labor dispute was settled and the 2005-06 season forthcoming, I sent an email to Ted Saskin on September 22, 2005. The following in an excerpt from that email:

"What can't wait are the issues we also had to resolve;

Draft Redemption Programs for 2001, 2002 and 2003. With the season starting on October 5th, players will be playing their first games and their redemption cards will be in play. I must publish a final position on this matter. In The Game is ready to incur the costs to complete this program, I am seeking your permission to do so. As you are aware, this program was approved by both the NHLPA and NHL and many collectors have spent a lot of money to acquire the redemption cards."

I continued to forward to the NHLPA the hundreds of emails that In The Game was receiving from collectors about the Draft Redemption Program and collectors concerns about the program. Since I was not in a position to officially let collectors know exactly what was going to happen to their Draft Redemption Cards, I tried to get resolution to the situation by making the NHLPA aware of the concerns of the collecting community.

In the second week of October 2005, I was informed by the NHLPA that Upper Deck was going to fulfill the Draft Redemption Program and that the NHLPA, NHLE and Upper Deck were going to issue a Press Release confirming this to collectors. Weeks went by without a Press Release and I emailed Saskin several times to inquire about this, without reply.

Finally a Press Release was issued by the NHLPA. The following is an excerpt from that Press Release:

"Under the terms of the arrangement, The Upper Deck Company will now manufacture the cards using the original In The Game card design. The cards will be sent from Upper Deck to the NHLPA offices in Toronto where they will be numbered and sent to collectors as they are redeemed. Once the player¹s card expires under the terms of the original program, the balance of the cards will be destroyed, and the number of cards redeemed will be released to the public."

Shortly after the issuing of the Press Release, I was asked by the NHLPA to put together a disk that contained the artwork used in the manufacture of the Draft Redemption Cards. I did so immediately and sent this disk to Martin McQuaig at the NHLPA. The following is an excerpt from an email from Martin McQuaig at the NHLPA confirming same:

"Brian,

The disk got here, thanks. The e-mail address for the program will be draftcards@nhlpa.com.

Marty"

So the NHLPA and Upper Deck had the artwork they needed in November 2005.

From the date the Press Release was issued in late 2005, I continued to follow up with the NHLPA through multiple emails to ensure that the cards were going to be produced. I was continually given every indication that they would be produced and sent to collectors.

Six months later, in April 2006, I was contacted by Ted Saskin of the NHLPA asking me for my consent to use the In The Game designs in the manufacture of the cards. First of all, why did it take six months for this request? Secondly, I had already sent a disk to the NHLPA with the In The Game art on it, wasn't this consent to use the marks? Upper Deck and the NHLPA issued a Press Release in October 2005 stating that they were going to use the In The Game designs.

Regardless, consent was granted by email I sent to Ted Saskin the very same day. The following is an excerpt from an email from Ted Saskin to me dated April 10, 2006:

"Had a quick question on the redemption program. My recollection is that upper deck is manufacturing the cards under the original IN THE GAME card designs. Accordingly, I assume that upper deck is authorized by you to print under the ITG designs for the sole purpose of these redemption cards and that you waive any copyright or other potential claims against them in connection with the printing of these redemption cards. if this is not the case please call or email."

Although I had confirmed many times in emails that Upper Deck and the NHLPA had our consent much earlier and in fact, as noted sent them a disk with the "marks" on it for their use. At the latest, Upper Deck and the NHLPA certainly had our consent to use the In The Game "marks", in April 2006.

I continued to follow up with the NHLPA on a weekly basis and was told that the cards were being sent out in May 2006 and in fact I was emailed an image of one of the cards.

I continued to forward emails I was receiving from collectors to the NHLPA since I had no further information about the program. Although In The Game was not in control of the situation, we continued to answer collectors' emails as best we could since collectors were telling us that neither the NHLPA nor Upper Deck would answer their emails.

Here is where the fun starts.

Just when we were told that the cards were printed and were finally going to be sent out, eight months after the initial Press Release, the NHLPA asked In The Game to sign a Release and Indemnity in favor of Upper Deck. The following is an excerpt from and email I received from the NHLPA on June 14, 2006:

"Brian

I am forwarding, for your review, the release UD has requested you sign with respect to the redemption cards.

Please let me know if you have any questions or please sign and send to me to forward to UD.

Adam" [Adam Larry is a lawyer at the NHLPA offices]

I was totally perplexed by this request at this time. The NHLPA and Upper Deck had our consent, they had our artwork on a disk and in fact, I was told that the cards were already produced and ready to be sent out.

Why should In The Game take on any liability to Upper Deck and Upper Deck's handling of the Draft Redemption Program? They had already taken more than a year to get it started and collectors were already irritated. Upper Deck asked us to indemnify them for any damages caused by the program. How could we do that? We had not been in control of the program for more than a year. Upper Deck could have done anything and wanted us to be responsible.

The following is an excerpt from my reply to this request:

"Adam:

Are they out of their minds.

I agree to allow them to use my copyrighted designs and that's it.

They should be holding me harmless for what they do with the program.

No way will I agree to this.

They took over the project in October and they send this to me in June, give me a break.

BHP"

It becomes difficult to publish what followed after this correspondence but to summarize, even though Upper Deck asked for this Release and Indemnity eight months after they agreed to fulfill the program, I, against the advice of my lawyers, tried to satisfy their request as I wanted collectors to get their Draft Redemption Cards and this was the only thing that I could do to help. In The Game agreed to provide a Release and Indemnity despite the fact that they already had our consent to use our designs and Intellectual Property.

Thereafter, from June 2006 to November 2006, we did our best to come to an agreement with Upper Deck. We spent a tremendous amount of management time and legal expenses to appease Upper Deck. Without going into detail, we found Upper Deck's lack of timely responses and negotiating stances very frustrating and unnecessary.

Ultimately, after spending almost six months discussing a simple two page document, on November 9, 2006 (prior to Upper Deck's Collectors' Meeting at the Fall Expo), In The Game signed and delivered to the NHLPA a Release and Indemnity that reflected, in our view, Upper Deck's requested terms. However, Upper Deck did not sign the agreement within the time frame allotted in the agreement and, as a result, no agreement was concluded.

We then heard that Upper Deck made disparaging remarks about In the Game at the Collectors' Meeting at the Fall Expo. For Upper Deck to say that In The Game has delayed the fulfillment of the program is ludicrous. Collectors should ask themselves who they think amongst these parties has the collectors' interest at heart, who answered their emails, who sent the NHLPA a disk with their artwork, who sent the NHLPA their consent to use their IP. I have all the documents on file to back this up.

Upper Deck and the NHLPA have in my opinion totally destroyed the integrity of this program and took more than one year to do it. Now they are sending out memos to collectors trying to blame In The Game for the delay.

In The Game is currently contemplating legal action against both parties for any damage to our reputation that this might have caused but we realize as a small company, in these types of matters, only the lawyers will win.

I am very glad that collectors finally are receiving their cards; that was my goal from the outset. We invite your comments. Please send them to info@itgtradingcards.com and put on the subject line "Draft Redemption Program"

Thanks for taking the time to read this letter, I needed to set the record straight and get this off my chest. The NHLPA, NHL and Upper Deck have tried their best to put In The Game out of business, that's obvious. But remember, this is hockey and hockey is a tough sport. In The Game is a tough company.

Dr. Brian H. Price