Declaration of William Welter in Support of Plaintiffs Atlantic Wave Holdings, LLC and Strikepoint Consulting LLC’s Update re: Motion to Vacate
1. I am the Managing Director of Atlantic Wave Holdings, LLC, Secure Community, LLC, and Strikepoint, LLC (collectively, "Plaintiffs") in the above- captioned matter. I have personal knowledge of the facts set forth herein...
DISTIL analysis
- Settlement Agreement executed June 15, 2023 requiring monthly installments totaling $1,572,500
- Cyberlux received $38 million U.S. government payment September 8, 2023 for Ukraine drone contract
- Mark Schmidt transferred $4,417,205.06 to personal accounts and related parties between September 2023 and April 2024
- Cyberlux ceased payments after May 2024 despite contractual obligations
- Virginia court dismissed Cyberlux's declaratory relief action June 7, 2024 and awarded Atlantic Wave attorney's fees
- Cyberlux repeatedly ignored information requests about drone sales from July 2023 onward
- Outstanding balance of $977,882.31 as of August 2024 after garnishment proceeds applied
- Cyberlux failed to appear for noticed depositions in August 2024
Extracted text
164 pages · 283016 charactersDavid M. Keithly, State Bar No. 292101 dkeithly@mortensontaggart.com Sara K. Ross, State Bar No. 346153 sross@mortensontaggart.com
MORTENSON TAGGART ADAMS LLP 300 Spectrum Center Drive, Suite 1200 Irvine, California 92618
Telephone: (949) 774-2224 Facsimile: (949) 774-2545 Attorneys for Plaintiffs and Counterclaim Defendants ATLANTIC WAVE HOLDINGS, LLC and STRIKEPOINT, LLC
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA
ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company and STRIKEPOINT CONSULTING, LLC, a Virginia limited liability company, Plaintiffs, VS.
CYBERLUX CORPORATION, a Nevada Corporation; MARK D. SCHMIDT, an individual; and DOES 1 to 50, Inclusive,
Defendants.
CASE NO. 3:24-cv-00482-RBM-VET Honorable Ruth Bermudez Montenegro
DECLARATION OF WILLIAM WELTER IN SUPPORT OF PLAINTIFFS ATLANTIC WAVE HOLDINGS, LLC AND STRIKEPOINT CONSULTING, LLC'S UPDATE RE: MOTION TO VACATE
Case No. 3:24-cv-00482-RBM-VET
DECLARATION OF WILLIAM WELTER
I, William Welter, declare as follows:
-2- Case No. 3:24-cv-00482-RBM-VET
DECLARATION OF W. WELTER
MORTENSON TAGGART ADAMS LLP
Would be nice to conclude these matters. Thanks" (Dkt. No. 9-3 at p. 55). Again, Cyberlux did not respond.
with Defendants' refusal to provide any information on the number of drones sold, further complicates the accurate determination of the total amount owed.
· Atlantic Wave Holdings, LLC and Secure Community, LLC (AWH/SC): Principal: $430,295.59, Interest Due: $95,000.62, Total Owed: $525,296.21
· StrikePoint, LLC: Principal: $372,669.40, Interest Due: $79,916.69, Total Owed: $452,586.09
o Grand Total Owed: $977,882.31
DECLARATION OF W. WELTER
As of the date of this filing, the Caveat Emptor status has not been removed. On September 1, 2024, I accessed OTCMarkets.com and searched for CYBL stock. Attached hereto as Exhibit K is a true and correct copy of the information I obtained from OTCMarkets.com regarding CYBL stock. While this dispute remains unresolved, it is not a subject of Plaintiffs' collection action, which deals solely with the enforcement of the amended final judgment and order.
· September 8, 2023: $250,000 phone transfer authorized by Mark Schmidt
· September 11, 2023: $213,000 wire to Fletcher Jones Motorcars for a vehicle purchase
. September 14, 2023: $187,500 phone transfer authorized by Mark Schmidt
· September 19, 2023: $55,000 transfer to Schwab account
-7- Case No. 3:24-cv-00482-RBM-VET
· September 20, 2023: $600,000 phone transfer authorized by Mark Schmidt
· September 26, 2023: $692,689.64 member debit memo
· October 16, 2023: $850,000 transfer to Schmidt's Edward Jones account
· October 16, 2023: $994,460 transfer to G2G Global LTD
· October 23, 2023: $6,000 transfer to Schwab account
. November 7, 2023: $25,000 transfer to Schmidt
· January 4, 2024: $108,555.42 transfer to Schmidt
· January 29, 2024: $25,000 transfer to Schmidt
· February 7, 2024: $20,000 transfer to Schmidt
· March 6, 2024: $290,000 transfer to Schmidt
· April 11, 2024: $50,000 transfer to Schmidt
· April 11, 2024: $25,000 transfer to Holly Schmidt
· April 11, 2024: $25,000 transfer to Schmidt
III /// ///
Executed this 3rd day of September, 2024, in Tappahannock, VA.
/s/ William Welter
WILLIAM WELTER Managing Director of Atlantic Wave Holdings, LLC, Secure Community, LLC, and Strikepoint, LLC
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC
RECEIVED AND FILED
:selected: CIRCUIT COURT 8:55 MAY 2 1 2024
BY EDWARD F. JEWETT, CLERK PAR D.C.
Plaintiffs
V.
Case No. CL22-3882-00
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually
Defendants
Defendants Cyberlux Corporation and Mark D. Schmidt, (hereinafter, collectively, "Defendants"), entered into a Settlement Agreement (hereinafter the "Agreement") with Plaintiffs Atlantic Wave Holdings, LLC and Secure Community, LLC (hereinafter "Plaintiffs"). In the face of discovery sanctions, Defendants entered into a Settlement Agreement with Plaintiffs on June 13, 2023 that called for a total amount of $1,572,500 to be paid in scheduled monthly installments.1 Section 21 of the Settlement Agreement proscribes the remedies available to Plaintiffs should there be a breach of the Agreement.
Defendants have not breached the Agreement and continue to timely make
the agreed upon payments.2. Knowing this, instead of following the terms of the
Settlement Agreement, Plaintiffs attempt to side-step Section 21 and improperly initiated garnishments, writ of fieri facias, and notices of judgment lien processes, improperly relying on this Court's Amended Final Order and Judgment. Defendants therefore ask this Court to enter an order enjoining Plaintiffs from violating the Agreement.
This Court is well aware of most of the relevant factual background of this matter so this brief overview provides this Court with an update of Plaintiffs' nefarious actions.
them such authority. This behavior is unbecoming of corporations operating in the Commonwealth of Virginia and should not be countenance by this Court.
a. Equitable Relief is Available
"A court of equity ... has the power to issue an injunction to prevent the future commission of a tort or to restrain an on-going wrong." William Hamilton Bryson, Bryson on Virginia Civil Procedure 12-9 (2010). In order to receive equitable relief, the petitioner must first demonstrate that there is not an adequate remedy at law. See Ewing v. Dutrow, 128 Va. 416, 104 S.E. 791 (1920).
In the present matter, legal relief is inadequate to remedy the ongoing and immediate harm being visited upon Defendants. The only rational explanation for why Plaintiffs are acting in the manner they are is a desire to injure the Defendants. That desire, too, is inexplicable. Plaintiffs own shares in Cyberlux. Schmidt was the former business partner of Plaintiffs. Plaintiffs must realize that their own actions are devaluing their shares in Cyberlux and that they are harming their former partner. Regardless of Plaintiffs' motives or goals, Cyberlux is a viable business with improving prospects. Moreover, the violations to which Defendants have been subjected are ongoing and risk imminent and irreparable harm. If Plaintiffs are permitted to persist in their course of conduct, Defendants' injuries, and in particular the damage to their business and ability to operate will be permanent and irreparable to such an extent that an award of damages or the like will not make them whole.
While the Supreme Court of Virginia has not yet decided a case that conclusively states the standards to be applied in granting or denying a preliminary injunction, Virginia circuit courts have traditionally utilized the standards used by the federal courts. Pursuant to these standards, to obtain a preliminary injunction, a petitioner must "establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of the equities tips in his favor, and that an injunction is in the public interest." Winter v. NRDC, Inc., 555 U.S. 7, 20 (2008). The Fourth Circuit adopted this test in 2009, concluding that the "balance-of- hardship test" in Blackwelder Furniture Co. of Statesville v. Seilig Manufacturing Co., 550 F.2d 189 (4th Cir. 1977), "stands in fatal tension" with Winter. Real Truth About Obama, Inc. v. Fed. Election Comm'n, 575 F.3d 342, 346 (4th Cir. 2009).
Under the Winter test, Defendant's petition for a preliminary injunction should be granted. First, Defendants are likely to succeed on the merits given the clear and unambiguous language contained in the Agreement, and Plaintiffs' conduct, which directly violates those provisions and walks if not crosses the line of ethics. Second, Defendants are likely to suffer irreparable harm in the absence of immediate preliminary injunctive relief and a return to the status quo. If Defendants accounts are allowed to be garnished and they are barred access to payroll funds, they will be unable to adequately operate and unable to meet their contractual obligations to their clients, thereby damaging their position in the marketplace and ability to meet their financial obligations under the Agreement.8 Also, if Plaintiffs persists in its behavior, Defendants will be irreparably harmed. Injunctive relief ordering Plaintiffs to immediately cease and desist any such violations of the Agreement, releasing all improperly ceased funds gained pursuant to the misuse of a Notice of Judgment Lien and Writ of Fieri Facias, will strongly assist in remediating harm to Defendants.
Regarding the balance of equities, it is without question that they favor Defendants. Granting a preliminary injunction mandating that Plaintiffs comply with their contractual obligations would cause no harm to Plaintiffs whatsoever; indeed, it asks them to do only that which they are obligated to do. On the other hand, not granting a
preliminary injunction would visit immense harm on Defendants. This would be wholly unacceptable.
Finally, an injunction is in the public interest. Indeed, the public interest is best served when contracts (settlement agreements) are upheld and strictly complied with. Conversely, the public interest is greatly harmed by permitting individuals and businesses to flout their contractual obligations and disregard those they no longer wish to fulfill. Such would be unacceptable in a society of laws.
For the foregoing reasons, Defendants request that this Court grant Defendants' Emergency Motion for Declaratory Relief and enter a preliminary injunction order that requires Plaintiffs to (1) dismiss any and all garnishments, writs of fieri facias, and notice of judgment liens improperly issued by using this Court's Amended Final Order entered pursuant to a Settlement Agreement that Plaintiffs have purposefully failed to disclose to the banks receiving the garnishment documents; (2) refrain from issuing any new garnishments, writs of fieri facias and notice of judgment liens; (3) reimburse Defendants for its attorneys' fees and costs associated with the unauthorized litigation initiated against Defendants including all attorneys' fees necessitated by the bringing of this motion, court costs, and any other and further relief as the Court deems appropriate.
Dated May 21, 2024
Respectfully Submitted,
CYBERLUX CORPORATION LLC AND
MARK D. SCHMIDT
By_/s/ Jimmy F. Robinson, Jr.
Jimmy F. Robinson, Jr., Esquire
Virginia States Bar Number 43622
jimmy.robinson@ogletreedeakins.com
Counsel for Defendants
OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C.
Richmond, VA 23219
Tel .: (804) 663-2336
Fax: (855) 843-1809
CERTIFICATE OF SERVICE
The undersigned counsel hereby certifies that on May 21, 2024, a copy of the foregoing document was served via electronic means upon the following
Robert Keith Caudle, III Caudle and Caudle, P.C. 1910 Byrd Avenue, Suite 118 Richmond, VA 23230 p: 804-358-4961 f: 804-353-1036 robcaudle@caudleandcaudle.com Counsel for Plaintiffs
CYBERLUX CORPORATION LLC AND MARK D. SCHMIDT
By_/s/ Jimmy F. Robinson, Jr. Jimmy F. Robinson, Jr., Esquire Virginia States Bar Number 43622 jimmy.robinson@ogletreedeakins.com Counsel for Defendants OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 Tel .: (804) 663-2336 Fax: (855) 843-1809
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This Settlement Agreement (the "Agreement") is made as of this 15thth day of June 2023, by and between ATLANTIC WAVE HOLDINGS, LLC, SECURE COMMUNITY, LLC (collectively, "Plaintiffs"), CYBERLUX CORPORATION AND MARK D. SCHMIDT (collectively, "Defendants"), and STRIKEPOINT CONSULTING, LLC ("Strikepoint") a separate party with some common interest holders to the Plaintiffs. Plaintiffs, Defendants, and Strikepoint shall collectively be referred to as the "Parties to this Agreement" and Plaintiffs and Defendants shall collectively be referred to as "Parties to the Litigation."
WHEREAS, Plaintiffs and Defendants entered into an agreement on October 8, 2021, which compensated Plaintiffs for the reacquisition by Defendant Cyberlux of certain intellectual property in exchange for certain installment payments of fixed liquidated sums by Defendants to Plaintiffs and "Freely Trading" stock, which had fallen into arrears ("the IP Agreement");
WHEREAS, on September 24, 2021, an agreement was executed between an entity described as "Strikepoints Consulting, LLC" and Defendant Cyberlux Corporation for certain consulting services (the "Strikepoint Consulting Agreement"), which called for, inter alia, installment payments of fixed liquidated sums owed by Defendants to Plaintiff, which also fell into arrears;
WHEREAS, Plaintiffs filed its Complaint for breach of said agreements in the Circuit Court of the City of Richmond, Virginia (the "Court"), against Defendants in the civil action titled, Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt (Case No. CL22-3882) (the "Litigation"), which remains pending;
WHEREAS, the Parties to this Agreement desire to resolve and settle any and all existing disputes between the Plaintiffs and Defendants and between Strikepoint and Defendants to eliminate uncertainty and facilitate final resolution of their respective relationships between the parties; and
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WHEREAS, the Parties to this Agreement have been told by Cyberlux for more than six (6) months that Cyberlux anticipates a significant cash inflow connected with the sales of certain drone products.
NOW, THEREFORE, in consideration of the promises, and other good and valuable consideration, the sufficiency of which is acknowledged by the Parties, and intending to be legally bound, the Parties to this Agreement agree as follows:
a. IP Agreement: ONE MILLION TWO HUNDRED THOUSAND DOLLARS ($1,200,000) minus payments made of TWO HUNDRED SEVENTY- SEVEN THOUSAND FIVE HUNDRED DOLLARS ($277,500) for a total due of NINE HUNDRED TWENTY-TWO THOUSAND FIVE HUNDRED DOLLARS ($922,500), as the balance due and owing for installment payments under the IP Agreement between the parties, as that term is defined in the Complaint initiating the Litigation; and
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b. Balance of Consulting Agreement: The parties agree to terminate and resolve any disputes arising out of the Strikepoint Consulting Agreement for consideration of: SIX HUNDRED FIFTY THOUSAND DOLLARS ($650,000), as the balance due and owing for installment payments under the Consulting Agreement between the parties.
C. Total Value of the Consent Judgment: The total liquidated sum that shall be due and owing to Plaintiffs under the parties' Consent Judgment shall be ONE MILLION FIVE HUNDRED SEVENTY-TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500), plus Plaintiffs' costs as defined in 4(d) (the "Settlement Consideration"), which is the sum of the outstanding installment payments owing in the IP Agreement, the Strikepoint Consulting Agreement, and Plaintiffs' costs as appropriately allocated between Plaintiffs and Strikepoint below.
d. Effect of Consent Judgment: The Consent Judgment shall be promptly entered jointly and severally against Defendants and in favor of Plaintiffs in exchange for payment of the full Settlement Consideration, which shall resolve the above styled matter. The parties agree that the Consent Judgment shall not be dischargeable, including by appeal or bankruptcy, in any manner other than by agreement of the parties, to the fullest extent permissible under the law.
e. Stock. Notwithstanding the foregoing, the parties agree that entry of the Consent Judgment awarding FINAL judgment in favor of Plaintiffs and against Defendants shall resolve the pending Litigation. Notwithstanding entry of a Final Order, the parties herby agree that if the Cyberlux stock is not brought to current "Pink Status" and the Caveat Emptor legend and restriction is not remedied and removed on or before December 31, 2023, Plaintiffs shall have the option, at their
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sole discretion, to re-file a new complaint related to the breach by Defendants to create "Negotiable Shares", as that breach is alleged and defined in the Complaint, without Defendants asserting a defense of res judicata or collateral estoppel. Plaintiffs recognize that matters can be delayed at no fault of a party and to that end shall consider an extension of the aforementioned deadline (December 31, 2023) upon the showing of credible evidence to do so, for an extension period to be decided at the reasonable discretion of Plaintiffs.
a. First Settlement Payment: Within thirty (30) days after the simultaneous execution of this Agreement, and entry of the Consent Judgment, and the receipt by Cyberlux of its first installment payment for the anticipated sale of drones or other revenue whichever occurs last, but in no event more than forty-five (45) days from the execution of this Agreement, Defendants shall transmit to Plaintiffs, by wire transmission, the non-defeasible sum of One Hundred Fifty Thousand Dollars ($150,000) (the "First Settlement Payment"). The delivery of the First Settlement Payment shall require the actual receipt of the Settlement Payment by Plaintiffs as set forth herein. Time being of the essence.
b. Monthly Installments Thereafter to Plaintiffs: Defendants shall transmit to Plaintiffs, by wire transmission.thirty-Six (36) non-defeasible monthly payments of TWENTY-ONE THOUSAND FOUR HUNDRED AND FIFTY- NINE DOLLARS ($21,459.00) payable on the first day of each month, beginning
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in July 2023. Monthly payments shall continue on the first of each month, time being of the essence, until the total Settlement Consideration due to Plaintiffs is paid. Defendants agree to accelerate and pay the full outstanding balance of all sums owed under the Consent Judgment up to a total of FIVE THOUSAND DOLLARS ($5,000) per drone sold within twenty-one (21) days of Defendants, or any parent's, subsidiary's, affiliate's, or assign's first receipt of payment for any contract to purchase drone aircraft.
c. Monthly Installments Thereafter to Strikepoint: Defendants shall transmit to Strikepoint, by wire transmission.thirty-Six non-defeasible monthly payments of EIGHTEEN THOUSAND FIFTY-FIVE DOLLARS AND FIFTY-SIX CENTS ($18,055.56) payable on the first day of each month, beginning in July of 2023. Monthly payments shall continue on the first of each month, time being of the essence, until the total Settlement Consideration due to Strikepoint is paid. Defendants agree to accelerate and pay the full outstanding balance of all sums owed under the Consent Judgment up to a total of FIVE THOUSAND DOLLARS ($5,000) per drone sold within twenty-one (21) days of Defendants, or any parent's, subsidiary's, affiliate's, or assign's first receipt of payment for any contract to purchase drone aircraft.
d. Costs, including Legal Fees: In addition to the sums above, Defendants agree to pay all Plaintiffs' costs, including but not limited to, attorney's fees and expert witness fees, accrued in and with this Litigation within 60 (sixty) days of the full execution of this Agreement or upon terms agreed to by the parties. Subject to the following CAP. Plaintiffs agree to CAP costs and attorney's fees, for cost and attorney's fees relevant the matters dealt with in this settlement agreement, at 12% of the value of the total settlement or ONE HUNDRED EIGHTY-EIGHT
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THOUSAND SEVEN HUNDRED DOLLARS ($188,700). The CAP does not apply to restrict or limit Plaintiffs ability to pursue costs and attorney's fees should Defendants breach this Agreement. This obligation shall be added to the total balance due specified in section 2(b) above and paid to Strikepoint.
e. Manner of Payment: All payments shall be wired to Plaintiffs and to Strikepoint. Information and Instructions for completing the wire transfer shall be provided to Defendants' Counsel upon execution of this agreement. Plaintiff may change its payment instructions from time to time by providing written notice.
f. Effect of Full Payment: Upon payment of all sums due and owing herein, the Judgment entered herein shall be marked "Satisfied."
g. No Other Beneficiary: The payment of funds herein shall not operate to release any other party, other than the Parties to this Agreement, as set forth below. Nor shall the dismissal of any claim herein inure to the benefit of any party who is not a Party to this Agreement.
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ownership of stock in Cyberlux Corporation, Plaintiff's prosecution of the Litigation, or the negotiation and entry into this Agreement. Upon receipt of the First Settlement Payment, Plaintiff Secure Community, LLC, Plaintiff Atlantic Wave Holdings, LLC, and Strikepoint Consulting, LLC, release any and all known or unknown causes of action, claims, counterclaims, or demands, present or future, asserted or unasserted, against Defendants or any of Defendant Cyberlux's members, officers, agents, counsel, employees, and affiliates arising or accruing from the beginning of time and up to and including the date of this Agreement, including all claims based upon or in any way relating to the IP Agreement, the Strikepoint Consulting Agreement, Plaintiffs' prosecution of the Litigation, or the negotiation and entry into this Agreement.
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Emptor" restriction) and will continue to use any and all reasonable efforts to maintain compliance at all times.
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Eastern District of Virginia in the Richmond Division. Defendants hereby agree and submit to the Jurisdiction of the foregoing Courts, including personal jurisdiction, for any such future action.
Max. DEleeromersignatures Permitted. The Parties to this Agreement will accept electronic signatures as being effective signatures for the purposes of endorsing this Agreement, and any counterparts or amendments to this Agreement.
THE PARTIES FULLY UNDERSTAND THE FINAL AND BINDING EFFECT OF THIS AGREEMENT. THE ONLY PROMISES OR REPRESENTATIONS MADE TO ANY SIGNATORY ABOUT THIS AGREEMENT ARE CONTAINED HEREIN. THE PARTIES ARE VOLUNTARILY AND KNOWINGLY SIGNING THIS AGREEMENT.
IN WITNESS WHEREOF, and intending to be legally bound, the Parties hereto set their hands and seals.
Cam 8 6hetes Charles Watts, Jr, in his capaciDas Special Counsel for Cyberlux Corporation and Mark D. Schmidt
Date: 06/15/2023
Mark D. Schmitt
Mark D, Schmidt, individually and on behalf of Cyberlux Corporation, as its President
Date: 06/15/2023
William Welter, as a Managing Director of Atlantic Wave Holdings, LLC and Secure Community, LLC
Date:
June 15,2023
STRIKEPOINT CONSULTING, LLC
Checi Volan
Date:
6/15/2023
Cheri Nolan. CEO and President of Strikepoint Consulting, LLC
Date:
June 15,2023
William Welter, Managing Director of Strikepoint Consulting, LLC
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VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
)
ATLANTIC WAVE HOLDINGS, LLC ) AND SECURE COMMUNITY, LLC ) )
Plaintiffs, )
)
v.
)
Case No
)
CYBERLUX CORPORATION and )
MARK D. SCHMIDT, individually )
)
Defendants.
)
)
BEFORE THE COURT is a Motion for Entry of Partial Summary Judgment by Plaintiffs ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC, and agreed to by Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, and as the authorized representative for CYBERLUX CORPORATION, and
IT APPEARING to the Court that the parties hereto have reached a settlement agreement that resolves the current need for continuing litigation.
UPON CONSIDERATION of the pleadings, the evidence, argument of counsel, the consent of the parties, and for good cause shown, it is hereby ORDERED, ADJUDGED, and DECREED that judgement is GRANTED in favor of Plaintiffs ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC, and against Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, jointly and severally, as follows:
a. The Court awards Plaintiffs the sum of ONE MILLION FIVE HUNDRED SEVENTY TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500) in compensatory damages, jointly and severally, against Defendants CYBERLUX CORPORATION
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and MARK D. SCHMIDT, to resolve the claims alleged in Plaintiffs' Complaint and certain other claims as agreed to by the parties pursuant to the parties' separate agreement.
b. The parties agree that this Final Judgement shall not be dischargeable in bankruptcy to the fullest extent permissible at law, and Defendants hereby waive all rights of reconsideration or appeal. Nor shall it be subject to any contribution or reduced through the payment(s) of any other parties in this matter. Rather it shall be the sole obligation of Defendants.
c. That the Plaintiffs be awarded all of their costs, including reasonable attorney's fees as per the Parties' settlement agreement, sanctions of $3,895.00 and $6,842.50, as provided by the Court's previous Orders, and post judgment interest at the rate of 12% per annum, as provided in the parties' agreement, from the date of entry of this order on the damages incurred in this matter.
d. That the parties have agreed to a security interest and lien interest in all property of Defendants in favor of Plaintiffs until all sums are paid, and such security interest may be further memorialized through the filing of appropriate UCC-1 forms and the filing of appropriate Liens.
e. Plaintiffs' Complaint is hereby dismissed without prejudice. THIS CAUSE IS
Hon. Jacqueline S. McClenney, Presiding Judge Circuit Court for the City of Richmond
[Endorsement of Parties on Next Page]
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WE ASK FOR THIS:
W. Benjamin Pace (VSB.No. 48633) Justin S. Feinman (VSB No. 87511) WILLIAMS MULLEN, PC 200 South 10th Street, 16th Floor Richmond, Virginia 23219 804.420.6442 wpace@williamsmullen.com jfeinman@williamsmullen.com Counsel for Plaintiffs
SEEN and AGREED:
Mark D. Schmidt
Mark D. Schmidt and Cyberlux Corporation 800 Park Offices Drive, Suite 3209 Research Triangle Park, NC 27709 By Mark D. Schmidt, Individually and us President of Cyberlux Corporation
Chillito Charles Watts, Jr, in his capacity as Special Counsel Cor Cyberlux Corporation and Mark D. Schmidt
PG0002 JUN 30 3
23-07422
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
)
ATLANTIC WAVE HOLDINGS, LLC ) AND SECURE COMMUNITY, LLC )
)
Plaintiffs, ) ) ) Case No: CL22-3882 - 4
v. ) CYBERLUX CORPORATION and )
MARK D. SCHMIDT, individually ) ) Defendants.
) )
BEFORE THE COURT is a Motion for Entry of an Amended Final Order and Judgment by Plaintiffs ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC, and agreed to by Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, and as the authorized representative for CYBERLUX CORPORATION, and
IT APPEARING to the Court that the parties hereto have reached a settlement agreement that resolves the current need for continuing litigation.
UPON CONSIDERATION of the pleadings, the evidence, argument of counsel, the consent of the parties, and for good cause shown, it is hereby ORDERED, ADJUDGED, and DECREED thatjudgement is GRANTED in favor of Plaintiffs ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC, and against Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, jointly and severally, as follows:
a. The Court awards Plaintiffs the sum of ONE MILLION FIVE HUNDRED SEVENTY-TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500) in compensatory damages, jointly and severally, against Defendants CYBERLUX CORPORATION
!: : :
I
PG0003 JU430 8
and MARK D. SCHMIDT, to resolve the claims alleged in Plaintiffs' Complaint and certain other claims as agreed to by the parties pursuant to the parties' separate agreement.
b. The parties agree that this Final Judgement shall not be dischargeable in bankruptcy to the fullest extent permissible at law, and Defendants hereby waive all rights of reconsideration or appeal. Nor shall it be subject to any contribution or reduced through the payment(s) of any other parties in this matter. Rather it shall be the sole obligation of Defendants.
c. That the Plaintiffs be awarded all of their costs, including reasonable attorney's fees of $177,126.19 per the parties' settlement agreement, evidenced by affidavits, and consented to by defendants, plus sanctions of $3,895.00 and $6,842.50, as provided by the Court's previous Orders, and post judgment interest at the rate of 12% per annum, as provided in the parties' agreement, from the date of entry of this order on the damages incurred in this matter.
d. That the parties have agreed to a security interest and lien interest in all property of Defendants in favor of Plaintiffs until all sums are paid, and such security interest may be further memorialized through the filing of appropriate UCC-1 forms and the filing of appropriate Liens.
e. Plaintiffs' Complaint is hereby dismissed without prejudice. THIS CAUSE IS
SAK ENDED. ENTERED this : 29 day of , 2023.
sull.
Hon Jacqueline S. McClenney, Presiding Judge Circuit Court for the City of Richmond
PG0004 JUN 30 8
WE ASK FOR THIS:
18h Puré
W. Benjamin Pace (VSD No 48633) Justin S. Feinman (VSB No. 83511) WILLIAMS MULLEN, PC 200 South 10th Street, 16th Floor Richmond, Virginia 23219 804.420.6442 wpace@williamsmullen.com jfeinman@williamsmullen.com Counsel for Plaintiffs :
SEEN and AGREED:
E
Mail D. Schmit
Mark D. Schmidt and Cyberlux Corporation 800 Park Offices Drive, Suite 3209 Research Triangle Park, NC 27709 By Mark D. Schmidt, Individually and as President of Cyberlux Corporation Chami Plusto Charles Watts, Jr, in his capacity as Special Counsel Lor Cyberlux Corporation and Mark D. Schmidt
DOCKETED IN THE CIRCUIT COURT OF THE CITY OF RICHMOND ON JUN 30 2023 AT: 3:30 pm
DocuSign Envelope ID: D741C8C4-A675-4EF1-BE7F-A4435D9C5383
II
CYBERLUX CORPORATION; and MARK D. SCHMIDT,
Counterclaimants,
V. ATLANTIC WAVE HOLDINGS, LLC; SECURE COMMUNITY, LLC, and STRIKEPOINT CONSULTING, LLC,
Counterclaim Defendants.
I, Mark D. Schmidt, declare:
DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WAVE'S MOTION TO STRIKE
Il DocuSign Envelope ID: D741C8C4-A675-4EF1-BE7F-A4435D9C5383
Judgment provides, in part, that "the parties hereto have reached a settlement agreement that resolves the current need for continuing litigation." Settlement Judgment at Page 1. Further, in Plaintiffs' state court action filed in San Diego County Superior Court and removed to this Court, Plaintiffs alleged: "In connection with the Settlement Agreement, on June 28, 2023, the Court in the Underlying Lawsuit entered an Amended Final Order and Judgment .... " Complaint, at Paragraph 18 [Dckt. 1, Ex. A].
Date
Payee
Amount
7/3/2023
Atlantic Wave Holdings, LLC
$10,737.50
7/3/2023
Atlantic Wave Holdings, LLC
$5,364.75
7/3/2023
Atlantic Wave Holdings, LLC
$4,513.89
9/8/2023
Atlantic Wave Holdings, LLC
$575,000.00
9/8/2023
Strikepoint Consulting, LLC :unselected:
$50,000.00
10/4/2023
Strikepoint Consulting, LLC :unselected: :unselected:
$20,000.00
11/2/2023
Strikepoint Consulting, LLC :unselected: :unselected:
$19,000.00
12/4/2023
Strikepoint Consulting, LLC :unselected: :unselected:
$19,000.00
1/2/2024
Strikepoint Consulting, LLC :unselected: :unselected:
$19,000.00
2/1/2024
Strikepoint Consulting, LLC :unselected: :unselected:
$19,000.00
3/1/2024
Strikepoint Consulting, LLC :unselected: :unselected:
$19,000.00
4/1/2024
Strikepoint Consulting, LLC :unselected: :unselected:
$19,000.00
TOTAL
$779,616.14
True and correct copies of the wire payment confirmations are attached hereto as Exhibit C. As more fully set forth in the concurrently filed Declaration of Douglas Grimes, Cyberlux's payments were either made by the deadlines provided in the Settlement Agreement (including the 3-day cure period), or were timely based upon the Plaintiffs' oral modification of the Settlement Agreement, upon which Cyberlux 3 3:24-cv-00196-RBM-VET
DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WAVE'S MOTION TO STRIKE
II DocuSign Envelope ID: D741C8C4-A675-4EF1-BE7F-A4435D9C5383
relied.
8.
3:24-cv-00196-RBM-VET
DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WAVE'S MOTION TO STRIKE
II DocuSign Envelope ID: D741C8C4-A675-4EF1-BE7F-A4435D9C5383
Executed this 18th day of April, 2024, at Vienna, Austria.
DocuSigned by: Mark D. Schmidt CB9EE73498DE446 ...
Mark D. Schmidt
DECLARATION OF MARK D. SCHMIDT IN OPPOSITION TO ATLANTIC WAVE'S MOTION TO STRIKE
Virgínia: In the Circuit Court of the City of Richmond, John Marshall Courts Building
ATLANTIC WAVE HOLDINGS, LLC, AND SECURE COMMUNITY, LLC, Plaintiffs, v. CYBERLUX CORPORATION, AND MARK D. SCHMIDT, Defendants.
Case No. CL22-3882
On May 31, 2024 came the parties, by counsel, to be heard on the Defendants' "Emergency Motion for Declaratory Relief," filed on May 21, 2024. Upon consideration of the filings, evidence, and arguments included in the record in the above-styled matter, the Court grants Defendants' temporary injunction only.
IT IS HEREBY ORDERED:
The Court NOTES the Defendants' objection to the Court's ruling, including the Court's ruling on jurisdiction. The Court further NOTES that it will accept, in camera, documentation of the payment of payroll and payments on the judgment owed. The Court hereby ORDERS the remainder of this matter be TAKEN UNDER ADVISEMENT pending the issuance of a written ruling.
The Clerk is DIRECTED to forward a certified copy of this Order to the parties. The Court DISPENSES with the parties' endorsements pursuant to Rule 1:13. It is so ORDERED.
ENTER: 5/31/2021
Jacqueline S. McClenney, Judge
Virginia: In the Circuit Court of the City of Richmond, John Marshall Courts Building
ATLANTIC WAVE HOLDINGS, LLC, AND SECURE COMMUNITY, LLC, Plaintiffs, v. CYBERLUX CORPORATION, AND
Case No. CL22-3882
MARK D. SCHMIDT, Defendants.
On May 31, 2024 came the parties, in person and by counsel, to be heard on the Defendants' "Emergency Motion for Declaratory Relief," filed on May 21, 2024. The Court, having considered the filings of the parties and having heard their arguments thereon, took the Defendants' Emergency Motion for Declaratory Relief under advisement.1 After due consideration, the Court DECIDES as follows.
On August 24, 2022 the Plaintiffs filed their "Complaint" against the Defendants, alleging two claims of Breach of Contract,2 Contractual/Equitable Audit, and Quantum Meruit. The parties subsequently entered into a Settlement Agreement, dated June 15, 2023,3 wherein the Defendants agreed to pay a total amount of $1,572,500.00 to the Defendants in scheduled monthly payments.4 The Court entered an agreed "Order of Final Judgment" on June 21, 2023 and then an agreed "Amended Final Order and Judgment" on
June 28, 2023. The Amended Final Order and Judgment provides that the Settlement Agreement "resolves the current need for continuing litigation."
The Plaintiffs initiated garnishment proceedings on April 2, 2024.5 Then, on April 18, 2024, the Plaintiffs requested that the Clerk of this Court issue a writ of fieri facias against the Defendants. On April 19, 2024 the Clerk of this Court issued the writ of fieri facias and the Defendants filed a "Certificate" wherein the Plaintiffs certified that a "Notice of Judgment Lien" was served on Towne Bank that same day. The Plaintiffs initiated additional garnishment proceedings on April 22, 2024.6
On May 21, 2024 the Defendants filed their Emergency Motion for Declaratory Relief, as well as a "Memorandum in Support of Defendants' Emergency Motion for Declaratory Relief."7 The Plaintiffs filed an "Opposition to Defendants' Emergency Motion for Declaratory Relief and Motion for Sanctions" on May 29, 2024. The Defendants later filed a "Reply to Plaintiffs' Response to Defendants' Emergency Motion for Declaratory Relief" on May 31, 2024. The Defendants requested attorney's fees and costs incurred in bringing forth their Motion, and the Plaintiffs requested attorney's fees and costs incurred in defending against the Defendants' Motion.8
In its Emergency Motion for Declaratory Relief, filed under the case number assigned to the underlying breach of contract action, the Defendants seek declaratory relief against the Plaintiffs. Specifically, the Defendants seek a declaratory judgment that:
In Primov v. Serco, the Supreme Court of Virginia distinguished dismissal of a suit "without prejudice" from dismissal of a suit "with prejudice."11 "A dismissal without prejudice terminates the action and concludes the rights of the parties in that particular action."12 Although the Defendants argue that the Amended Final Order and Judgment cannot be final because the Settlement Agreement, referenced therein, contemplates the need for support by this Court to address disputes or future challenges with the settlement, a dismissal without prejudice "does not prohibit the refiling of the action."13 The Amended Final Order and Judgment, dismissing the present case without prejudice, effectively terminated the underlying breach of contract action and concluded the rights of the parties in this particular case. Therefore, the Defendants request for declaratory relief, brought forth as a motion in the underlying breach of contract action, was improperly filed and must be denied.
1º See paragraph (e) of the Amended Final Order and Judgment.
For the foregoing reasons, the Court RULES that the Defendants' Emergency Motion for Declaratory Relief is DENIED. The temporary injunction awarded to the Defendants by the May 31, 2024 Order of this Court is hereby DISSOLVED.14 It is the ORDER of this Court that the Plaintiffs' Motion for Sanctions is DENIED. It is the further ORDER of this Court that the Defendants' request for attorney's fees is DENIED. The Court FINDS that the Plaintiffs are entitled to reasonable attorney's fees incurred in defending against the Defendants' Emergency Motion for Declaratory Relief. Accordingly, counsel for the Plaintiff is DIRECTED to file an "Affidavit of Attorney's Fees" with the Clerk's Office of this Court within seven (7) days of the entry of this Order. Counsel for the Plaintiffs SHALL send a courtesy copy of the Affidavit for Attorney's Fees to court staff via electronic mail, copying opposing counsel. The Plaintiffs' request for attorney's fees is hereby TAKEN UNDER ADVISEMENT pending receipt of the Affidavit of Attorney's Fees.15
The Clerk is DIRECTED to forward a certified copy of this Order to the parties. The Court DISPENSES with the parties' endorsements pursuant to Rule 1:13. It is so ORDERED.
ENTER: 6/7/2024
Jacqueline S. McClenney, Judge suy
VIRGINIA:
IN THE CITY OF RICHMOND CIRCUIT COURT
ATLANTIC WAVE HOLDINGS, LLC,
Plaintiff/Judgment Creditor, and SECURE COMMUNITY LLC,
V. CYBERLUX CORPORATION,
and PNC BANK,
Plaintiff/Judgment Creditor, Case No: CL22-3882-05 JSM
Defendant/Judgment Debtor,
Co-Defendant/Garnishee.
ORDER
THIS DAY came the plaintiffs/judgment creditors, Atlantic Wave Holdings, LLC and Secure Community, LLC, by counsel, and the co-defendant/garnishee, PNC Bank, upon the Writ of Fieri Facias issued on April 19, 2024, the Notice of Judgment Lien served on PNC Bank and Cyberlux Corporation, plaintiff's Suggestion in Garnishment, the Garnishment Summons with a return date of June 18, 2024, and the Garnishee's Answer to said Garnishment Summons that it has withheld $183,798.34 pursuant to the garnishment.
WHEREUPON the Court finds that the co-defendant/garnishee withheld the sum of $183,798.34 pursuant to the Writ of Fieri Facias and the garnishment and the judgment creditors are entitled to the funds. It is
ORDERED that the plaintiff recover from the garnishee the sum of $183,798.34. The garnishee is directed to forward a check in the amount of $183,798.34 to Caudle and Caudle, P.C., 1910 Byrd Avenue, Suite 118, Richmond, VA 23230 with in the time required by §8.01- 516.1 of the Code of Virginia (1950). In addition, the Clerk directed to forward an attested copy of this order to all parties in this matter.
Endorsement of the defendant and garnishee are waived pursuant to Rule 1:13 of the Rules of the Supreme Court of Virginia.
ENTER: 8/9/202
JUDGE
I ask for this:
Mulwell.
Robert Keith Caudle, III, (VSB No. 43450) Counsel for Plaintiff/Judgment Creditor Caudle and Caudle, P.C. 1910 Byrd Avenue, Suite 118 Richmond, Virginia 23230 P: 804-358-4961 F: 804-353-1036 robcaudle@caudleandcaudle.com
VIRGINIA:
IN THE CITY OF RICHMOND CIRCUIT COURT
ATLANTIC WAVE HOLDINGS, LLC,
Plaintiff/Judgment Creditor, and SECURE COMMUNITY LLC,
V. MARK D. SCHMIDT,
Plaintiff/Judgment Creditor,
Case No: CL22-3882-04 JSm
Defendant/Judgment Debtor,
and TOWNE BANK,
Co-Defendant/Garnishee.
ORDER
THIS DAY came the plaintiffs/judgment creditors, Atlantic Wave Holdings, LLC and Secure Community, LLC, by counsel, and the co-defendant/garnishee, Towne Bank, upon the Writ of Fieri Facias issued on April 19, 2024, the Notice of Judgment Lien served on Towne Bank and Mark D. Schmidt, plaintiff's Suggestion in Garnishment, the Garnishment Summons with a return date of June 18, 2024, and the Garnishee's Answer to said Garnishment Summons that it has tendered a check to the Court in the amount of $4,862.86 pursuant to the garnishment.
WHEREUPON the Court finds that the co-defendant/garnishee withheld the sum of $4862.86 and tendered the funds to the Court pursuant to the Writ of Fieri Facias and the garnishment and the judgment creditors are entitled to the funds, it is
ORDERED that the plaintiff recover from the garnishee the sum of $4,862.86. The Clerk is directed to forward the funds paid into the Court to Caudle and Caudle, P.C., 1910 Byrd Avenue, Suite 118, Richmond, VA 23230. In addition, the Clerk directed to forward an attested copy of this order to all parties in this matter.
Endorsement of the defendant and garnishee are waived pursuant to Rule 1:13 of the Rules of the Supreme Court of Virginia.
I ask for this:
nis Mulrol
Robert Keith Caudle, III, (VSB No. 43450) Counsel for Plaintiff/Judgment Creditor Caudle and Caudle, P.C. 1910 Byrd Avenue, Suite 118 Richmond, Virginia 23230 P: 804-358-4961 F: 804-353-1036 robcaudle@caudleandcaudle.com
ENTER: 8/9/2029 JUDGE
COMMONWEALTH OF VIRGINIA
VIRGINIA
RICHMOND CITY CIRCUIT COURT Civil Division 400 NORTH 9TH STREET RICHMOND VA 23219 (804) 646-6506
Summons
To: SECURE COMMUNITY LLC
RYAN BROWN, PLLC
ARLINGTON VA 22209
Case No. 760CL24002960-00
The party upon whom this summons and the attached complaint are served is hereby notified that unless within 21 days after such service, response is made by filing in the clerk's office of this court a pleading in writing, in proper legal form, the allegations and charges may be taken as admitted and the court may enter an order, judgment, or decree against such party either by default or after hearing evidence.
Appearance in person is not required by this summons.
Done in the name of the Commonwealth of Virginia on, Thursday, August 01, 2024
Clerk of Court: EDWARD F JEWETT
by De am Cup (CLERK/DEPUTY CLERK )
Instructions:
Hearing Official:
Attorney's name:
Uploaded: 2024JUL08 13:58 Filed By:Bar# 43622 JROBINSON Reference: EF-149053 ·E-Filed: 2024JUL08 RICHMOND CITY CC ILIPSCOMB at 2024JUL11 09:11 CL24002919-00
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually Plaintiffs,
V.
Case No.
ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC
Defendants.
Plaintiffs Cyberlux Corporation and Mark D. Schmidt, (hereinafter, collectively, "Defendants"), by counsel, state as follows for its Verified Complaint for Preliminary Injunction against Defendants Atlantic Wave Holdings, LLC and Secure Community, LLC (hereinafter "Defendants").
Plaintiffs bring this Emergency Application to seek immediate relief from Defendants' practice of violating written and oral settlement agreements and acting in bad faith against usual and prudent business practices by breaching the implied covenant of good faith and fair dealing and sequestering Plaintiffs' business operation funds, while dishonestly using this Court's judgment order to justify its unfair performance of its obligations under the settlement agreements.
Without an immediate injunction from this Court, Defendants will continue to use the pretext of this Court's judgment order to injure and harass Plaintiffs.
WHEREFORE, Plaintiffs request that this Court issue a temporary injunction awarding Plaintiffs the following relief:
Finding that Defendants Atlantic Wave Holdings, LLC and Secure Community, LLC, and their agents, servants, employees, directors, officers, attorneys and representatives, and all persons acting in concert or participating with them, are hereby enjoined and restrained during the pendency of this action from engaging in, committing, or performing, directly or indirectly, any and all of the following acts: Attempting to enforce the Amended Final Order and Judgment entered on June 28, 2023, in the Circuit Court of the City of Richmond, Case No. CL22- 3882-4 by any means, including, but not limited to, garnishment, writ of execution, writ of fieri facias, writ of possession, judgment lien or judgment debtor exam, in any manner and in any state, including, but not limited to, the State of California, where Defendants have attempted to domesticate the Amended Final Order and Judgment.
Dated July 8, 2024
Respectfully Submitted,
CYBERLUX CORPORATION LLC AND MARK D. SCHMIDT
By_/s/ Jimmy F. Robinson, Jr. Jimmy F. Robinson, Jr., Esquire Virginia States Bar Number 43622 jimmy.robinson@ogletreedeakins.com Counsel for Plaintiffs OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 Tel .: (804) 663-2336 Fax: (855) 843-1809
Service: RICHMOND CITY CC ILIPSCOMB at 2024JUL 11 09:11 CL24002919-00
SERVICE OTHER THAN BY VIRGINIA SHERIFF COMMONWEALTH OF VIRGINIA VA. CODE §§ 8.01-293, 8.01-320, 8.01-325
Case No. CL24002919-00
Service No. 2. (Clerk's use only)
Circuit Court RICHMOND CITY
CYBERLUX CORPORATION v. ATLANTIC WAVE HOLDINGS, LLC
SECURE COMMUNITY, LLC, RYAN BROWN, PLLC, 1739 CLARENDON BLVD, ARLINGTON, VA 22209-
is the name and address of the person upon whom service of the following is to be made:
Summons and Complaint :selected: COMPLAINT
I, the undersigned, swear/affirm that 1. [ ] I am an official or an employee of an official who is authorized to serve process of the type described in the attached Proof of Service and my title and bailiwick are as follows:
or, :selected: I am a private process server (list name, address and telephone number below).
A. S.Fewright 1011 & main ff Richmond, VA 804775-2160 or, [ ] I am an investigator employed by an attorney for the Commonwealth or the Indigent Defense Commission and have retired or resigned from my prior position as a law-enforcement officer in good standing. I affirm that the sheriff for the jurisdiction where process was served has agreed that such investigators may serve process. (List name, title and agency below.)
- Date and time of service:
7/19/29 4:06pm
- Place of service:
- Method of service:
STREET ADDRESS, CITY AND STATE
RECEIVED AND FILED CIRCUIT COURT 2:25. JUL 2 5 2024
EDWARD F. JEWETT, CLERK BY DAR D.C.
:selected: Personal Service [] Not Found
Being unable to make personal service, a copy was delivered in the following manner:
[ ] Delivery to family member (not temporary sojourner or guest) age 16 or older at usual place of abode of person to be served after giving information of its purport. List name, age of recipient, and relation of recipient to party
[ ] Posted on front door or such other door as appears to be the main entrance of usual place of abode (other authorized recipient not found).
[ ] (Garnishment Summons Only, § 8.01-511) Copy mailed to judgment debtor after serving the garnishee on date of service below unless a different date of mailing is shown.
DATE OF MAILING
7/19/24
A. Stumpf
State/Commonwealth of
DATE VA
SIGNATURE
[V] City [ ] County of
Richmars
Subscribed and sworn to/affirmed before me this day of July
by albert a few marie A Proces Jena
PRINT NAME OF SIGNATORY 7/19/2024 NOTARY KUUBLE
GREGORY 2 YEARSSKWNOTARYPUBLIC (
TITLE
DATE
POCO NOTARY PUBLIC (My commission expires May 2025 72086 93
)
FORM CC-1407 MASTER 07/18
OGRES Registration No.
5/31/2025
RYAN A. BROWN, PLLC d/b/a ARLINGTON LAW GROUP DESIGNATION OF NATURAL PERSONS TO ACCEPT SERVICE OF PROCESS
In accordance with Virginia Code §13.1-1015 (2)(b)(ii), Ryan A. Brown, Esq., the sole member of Ryan A. Brown, PLLC d/b/a Arlington Law Group, a Virginia professional limited liability company (the "Corporate Registered Agent"), executes the following written instrument to designate natural persons at the office of the Corporate Registered Agent upon whom any process, notice, or demand directed to the Corporate Registered Agent may be served and in support thereof states:
Ryan A. Brown, PLLC d/b/a Arlington Law Group
Cz
6/28/2024
By: Ryan A. Brown, Esq.
Date
Title: Member
COMMONWEALTH OF VIRGINIA COUNTY OF ARLINGTON 1 TO-WIT:
I, the undersigned Notary Public in and for the Commonwealth and County aforesaid, do hereby certify that Ryan A. Brown, Esq., whose name is signed to the foregoing Designation of Natural Persons to Accept Service of Process, has ACKNOWLEDGED the same before me.in the Commonwealth and County aforesaid on this day, June 28, 2024.
CmBa
ANTHONY NICHOLAS HERNANDEZ, REG. NO. 00273939, NOTARY PUBLIC MY COMMISSION EXPIRES: JUNE 30, 2028
den Dias Hernandez Finthory Nicholas
NOTARY PUBLIC REG. #00273939
A WEALTH OCURSOS
COMMONWEALTH OF VIRGINIA
VIRGINIA
RICHMOND CITY CIRCUIT COURT Civil Division 400 NORTH 9TH STREET RICHMOND VA 23219 (804) 646-6506
Summons
To: ATLANTIC WAVE HOLDINGS LLC
RYAN BROWN, PLLC
ARLINGTON VA 22209
Case No. 760CL24002960-00
The party upon whom this summons and the attached complaint are served is hereby notified that unless within 21 days after such service, response is made by filing in the clerk's office of this court a pleading in writing, in proper legal form, the allegations and charges may be taken as admitted and the court may enter an order, judgment, or decree against such party either by default or after hearing evidence.
Appearance in person is not required by this summons.
Done in the name of the Commonwealth of Virginia on, Thursday, August 01, 2024
Clerk of Court: EDWARD F JEWETT
(CLERK/DEPUTY CLERK ) Alan y
by
Instructions:
Hearing Official:
Attorney's name:
· Uploaded: 2024JUL08 14:34 Filed By:Bar# 43622 JROBINSON Reference: EF-149069
E-Filed: 2024JUL08 RICHMOND CITY CC ILIPSCOMB at 2024JUL11 09:19 CL24002960-00
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually Plaintiffs,
V.
Case No.
ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC
Defendants.
Plaintiffs Cyberlux Corporation and Mark D. Schmidt, (hereinafter, collectively, "Plaintiffs"), by counsel, state as follows for its Complaint against Defendants Atlantic Wave Holdings, LLC and Secure Community, LLC (hereinafter "Defendants").
' On or about June 30, 2023, the parties reached an agreement that Plaintiffs would pay 25% of the scheduled July monthly payments to Defendants on July 3, 2023 and would pay an additional $10,737 to Defendants on July 6, 2023. Thereafter, all remaining payments would be back on the payment schedule referenced in the Settlement Agreement, beginning August 1, 2023. This agreement was confirmed in emails between the parties. Representatives of the parties communicated regularly and Defendants orally agreed upon the schedule of the payments described in this footnote upon which Plaintiffs relied and upon which the parties performed. On July 3rd and July 6, 2023, Plaintiffs made the agreed-upon payments bringing all amounts due under the Settlement Agreement current immediately upon making the July payments.
the Settlement Agreement and to credit Plaintiffs' overpayments toward payments to be scheduled to be made in the following months.
a. The parties entered into an oral contract modifying the payment schedule set forth in the written settlement agreement.
b. Both the written and oral agreements are enforceable, valid and binding contracts.
c. The parties agreed that the September 8, 2023 wired payments paid by Plaintiffs in excess of the amounts then due under the Settlement Agreement would be credited to future monthly payments due under the Settlement Agreement.
d. After the September 8, 2023 wired payments, Plaintiffs made timely payments pursuant to the terms of the Settlement Agreement which were unconditionally accepted by Defendants.
e. Defendants improperly initiated garnishments, writ of fieri facias, and notices of judgment lien processes, improperly relying on this Court's Amended Final Order and in breach of the written and oral agreements.
f. Defendants' actions breached both the written and oral settlement agreements.
g. Defendants breached their implied duty of good faith and fair dealing by acting in bad faith and against usual and prudent business practices by ignoring the terms of the written and oral contracts and breaching the implied covenant by acting dishonestly in its contractual rights and acting arbitrarily and unfairly in the performance of its obligations under the settlement agreement.
Wherefore for the reasons stated above, Plaintiffs pray that this Court enter an Order declaring (i) the parties entered into an oral contract modifying the payment schedule set forth in the written settlement agreement; (ii) both the written and oral agreements are enforceable, binding contracts; (iii) the parties agreed that the September 8, 2023 wired payments paid by Plaintiffs in excess of the amounts then due under the
Settlement Agreement would be credited to future monthly payments due under the Settlement Agreement; (iv) after the September 8, 2023 wired payments, Plaintiffs made timely payments pursuant to the terms of the Settlement Agreement which were unconditionally accepted by Defendants; (v) Defendants acts of issuing garnishments, judgment liens and writs of fieri facias were improper and breached both the written and oral settlement agreements; (vi) Defendants breached their implied duty of good faith and fair dealing by acting in bad faith and against usual and prudent business practices by ignoring the terms of the written and oral contracts and breaching the implied covenant by acting dishonestly in its contractual rights. (vii) Defendants must release all sequestered funds from Plaintiffs' bank accounts and reimburse Plaintiffs for its attorneys' fees and costs associated with the unauthorized litigation initiated against Plaintiffs including all attorneys' fees necessitated by the bringing of this Complaint, court costs, and any other and further relief as the Court deems appropriate.
Dated July 8, 2024
Respectfully Submitted, CYBERLUX CORPORATION LLC AND MARK D. SCHMIDT
By_/s/ Jimmy F. Robinson, Jr. Jimmy F. Robinson, Jr., Esquire Virginia States Bar Number 43622 jimmy.robinson@ogletreedeakins.com Counsel for Plaintiffs OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 Tel .: (804) 663-2336 Fax: (855) 843-1809
SERVICE OTHER THAN BY VIRGINIA SHERIFF COMMONWEALTH OF VIRGINIA VA. CODE §§ 8.01-293, 8.01-320, 8.01-325
Case No.
CL24002960-00
Service No. 2. (Clerk's use only)
RICHMOND CITY
Circuit Court CYBERLUX CORPORATION V. ATLANTIC WAVE HOLDINGS LLC
ATLANTIC WAVE HOLDINGS LLC, RYAN BROWN, PLLC, 1739 CLARENDON BLVD, ARLINGTON, VA 22209-
is the name and address of the person upon whom service of the following is to be made:
[ Summons and Complaint [X] :selected: COMPLAINT
I, the undersigned, swear/affirm that 1. ] I am an official or an employee of an official who is authorized to serve process of the type described in the attached Proof of Service and my title and bailiwick are as follows: [
or,
[ ] I am a private process server (list name, address and telephone number below).
or, [ ] I am an investigator employed by an attorney for the Commonwealth or the Indigent Defense Commission and have retired or resigned from my prior position as a law-enforcement officer in good standing. I affirm that the sheriff for the jurisdiction where process was served has agreed that such investigators may serve process. (List name, title and agency below.)
- Date and time of service:
- Place of service:
- Method of service:
STREET ADDRESS, CITY AND STATE
[ ] Personal Service :unselected:
[ ] Not Found :unselected:
[ ] Being unable to make personal service, a copy was delivered in the following manner: [ ] Delivery to family member (not temporary sojourner or guest) age 16 or older at usual place of abode of person to be served after giving information of its purport. List name, age of recipient, and relation of recipient to party :unselected: :unselected:
[ ] [ ] :unselected: :unselected:
Posted on front door or such other door as appears to be the main entrance of usual place of abode (other authorized recipient not found).
(Garnishment Summons Only, § 8.01-511) Copy mailed to judgment debtor after serving the garnishee on date of service below unless a different date of mailing is shown.
DATE OF MAILING
DATE
SIGNATURE
State/Commonwealth of
, [ ] City [ ] County of
Subscribed and sworn to/affirmed before me this day of 20
by
PRINT NAME OF SIGNATORY
TITLE
DATE
NOTARY PUBLIC (My commission expires Registration No.
)
COMMONWEALTH OF VIRGINIA
BEGINIA
SUMMONS - CIVIL ACTION RULE 3:5; VA. CODE § 8.01-2
Case No. CL24002960-00
RICHMOND CITY
Circuit Court
ADDRESS
TO:
ATLANTIC WAVE HOLDINGS LLC, RYAN BROWN, PLLC
ARLINGTON, VA 22209-
The party upon whom this summons and the attached complaint are served is hereby notified that unless within 21 days after such service, response is made by filing in the clerk's office of this court a pleading in writing, in proper legal form, the allegations and charges may be taken as admitted and the court may enter an order, judgment or decree against such party either by default or after hearing evidence.
Appearance in person is not required by this summons.
Done in the name of the Commonwealth of Virginia.
JULY 11, 2024
JEWETT, EDWARD F
Clerk
DATE
by
/S/ LIPSCOMB, ILLENE
DEPUTY CLERK
Instructions:
Hearing Official:
Uploaded: 2024JUL08 14:34 Filed By:Bar# 43622 JROBINSON Reference: EF-149069 E-Filed: 2024JUL08 RICHMOND CITY CC ILIPSCOMB at 2024JUL11 09:19 CL24002960-00
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually Plaintiffs,
v.
Case No.
ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC
Defendants.
Plaintiffs Cyberlux Corporation and Mark D. Schmidt, (hereinafter, collectively, "Plaintiffs"), by counsel, state as follows for its Complaint against Defendants Atlantic Wave Holdings, LLC and Secure Community, LLC (hereinafter "Defendants").
' On or about June 30, 2023, the parties reached an agreement that Plaintiffs would pay 25% of the scheduled July monthly payments to Defendants on July 3, 2023 and would pay an additional $10,737 to Defendants on July 6, 2023. Thereafter, all remaining payments would be back on the payment schedule referenced in the Settlement Agreement, beginning August 1, 2023. This agreement was confirmed in emails between the parties. Representatives of the parties communicated regularly and Defendants orally agreed upon the schedule of the payments described in this footnote upon which Plaintiffs relied and upon which the parties performed. On July 3rd and July 6, 2023, Plaintiffs made the agreed-upon payments bringing all amounts due under the Settlement Agreement current immediately upon making the July payments.
the Settlement Agreement and to credit Plaintiffs' overpayments toward payments to be scheduled to be made in the following months.
a. The parties entered into an oral contract modifying the payment schedule set forth in the written settlement agreement.
b. Both the written and oral agreements are enforceable, valid and binding contracts.
c. The parties agreed that the September 8, 2023 wired payments paid by Plaintiffs in excess of the amounts then due under the Settlement Agreement would be credited to future monthly payments due under the Settlement Agreement.
d. After the September 8, 2023 wired payments, Plaintiffs made timely payments pursuant to the terms of the Settlement Agreement which were unconditionally accepted by Defendants.
e. Defendants improperly initiated garnishments, writ of fieri facias, and notices of judgment lien processes, improperly relying on this Court's Amended Final Order and in breach of the written and oral agreements.
f. Defendants' actions breached both the written and oral settlement agreements.
g. Defendants breached their implied duty of good faith and fair dealing by acting in bad faith and against usual and prudent business practices by ignoring the terms of the written and oral contracts and breaching the implied covenant by acting dishonestly in its contractual rights and acting arbitrarily and unfairly in the performance of its obligations under the settlement agreement.
Wherefore for the reasons stated above, Plaintiffs pray that this Court enter an Order declaring (i) the parties entered into an oral contract modifying the payment schedule set forth in the written settlement agreement; (ii) both the written and oral agreements are enforceable, binding contracts; (iii) the parties agreed that the September 8, 2023 wired payments paid by Plaintiffs in excess of the amounts then due under the
Settlement Agreement would be credited to future monthly payments due under the Settlement Agreement; (iv) after the September 8, 2023 wired payments, Plaintiffs made timely payments pursuant to the terms of the Settlement Agreement which were unconditionally accepted by Defendants; (v) Defendants acts of issuing garnishments, judgment liens and writs of fieri facias were improper and breached both the written and oral settlement agreements; (vi) Defendants breached their implied duty of good faith and fair dealing by acting in bad faith and against usual and prudent business practices by ignoring the terms of the written and oral contracts and breaching the implied covenant by acting dishonestly in its contractual rights. (vii) Defendants must release all sequestered funds from Plaintiffs' bank accounts and reimburse Plaintiffs for its attorneys' fees and costs associated with the unauthorized litigation initiated against Plaintiffs including all attorneys' fees necessitated by the bringing of this Complaint, court costs, and any other and further relief as the Court deems appropriate.
Dated July 8, 2024
Respectfully Submitted, CYBERLUX CORPORATION LLC AND MARK D. SCHMIDT
By_/s/ Jimmy F. Robinson, Jr. Jimmy F. Robinson, Jr., Esquire Virginia States Bar Number 43622 jimmy.robinson@ogletreedeakins.com Counsel for Plaintiffs OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 Tel .: (804) 663-2336 Fax: (855) 843-1809
៛ CHAP PETERSEN & ASSOCIATES, PLC J. Chapman Petersen+* Sharon Kim Petersen +also admitted in DC *also admitted in MD ^admitted in NY
J. Chapman Petersen jcp@petersenfirm.com Direct: 571-459-2510
Won Yung Uh Federico J. Zablah Christopher T. Robertson+ Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+
August 6, 2024
VIA ELECTRONIC MAIL
Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com
Re:
Cyberlux Corporation v. Atlantic Wave Holding, LLC, Case No. 240002919-0,
In the Circuit Court of the City of Richmond
Dear Mr. Robinson:
Attached please find a proposed corporate designee notice for taking your client's deposition in the above matter. You will note that we name both Mr. Schmidt and Cyberlux as deponents. If you designate Mr. Schmidt as the corporate representative, then that would likely cover both requests.
I've tentatively set this for Friday, August 23. If that date is unavailable, please let me know a date we can do this, preferably before the end of August. I've also set this tentatively for my office in Northern Virginia, assuming that may be more convenient for Mr. Schmidt. If not, then I will find a place in Richmond to do it, pursuant to Rule 4:5 of the Rules of the Supreme Court.
I look forward to working with you and thanks,
Very sincerely yours,
J. Chapman Petersen, Esq
JCP Enclosure
Copy: Client
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and ) MARK D. SCHMIDT, individually ) )
Plaintiffs,
)
v.
) )
Case No: CL24002919-00
)
ATLANTIC WAVE HOLDINGS, LLC ) AND SECURE COMMUNITY, LLC ) )
Defendants.
)
To:
CYBERLUX CORPORATION and MARK D. SCHMIDT
c/o Jimmy F. Robinson, Jr., Esq.
Suite 1300
Richmond, VA 23219
Jimmy.robinson@ogletreedeakins.com
Counsel for Plaintiffs
PLEASE TAKE NOTICE on Friday, August 23, 2024 at 10:00 AM (Eastern Time), pursuant to Virginia Supreme Court Rule 4:5(b)(6), Defendants Atlantic Wave Holdings, LLC ("Atlantic Wave") and Secure Community, LLC ("Secure Community") (collectively "Defendants"), by Counsel, will proceed to take the deposition of a designated representative for Plaintiffs, Cyberlux Corporation ("Cyberlux" or "the Company") and Mark D. Schmidt ("Schmidt") (collectively, the "Plaintiffs"), at the law office of Chap Petersen and Associates, PLC, 3970 Chain Bridge Road, Fairfax, Virginia, 22030, for all purposes allowed under the Rules
of the Supreme Court of Virginia. Plaintiffs shall designate a representative(s) who can address the following matters:
a) CMTC Drone Solutions (Acquisition date: 8/31/2021).
b) FBD Group SHPK (Acquisition date: 10/21/2021).
c) Havas Group, S.A.S (Acquisition date: 10/29/2021).
d) Kreatx SHPK (Acquisition date: 12/27/2021).
e) Digital Automation Solution, LLC (Acquisition date: 2/3/2022).
f) Catalyst Machineworks, LLC (Acquisition date: 3/30/2022).
g) Datron World Communications (Acquisition: August 2023).
IT IS FURTHER NOTICED that such testimony will be taken stenographically before a Notary Public and may be videotaped. If for any reason the taking of the deposition is not commenced on that day, or if commenced and is not concluded on that day, the taking of the deposition will be continued from day-to-day until the same shall be completed.
Respectfully Submitted, ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC By Counsel
J. Chapman Petersen, Esq. (VSB #37225) Chap Petersen & Associates, PLC 3970 Chain Bridge Road Fairfax, Virginia 22030 (571) 459-2512 (telephone) (571) 459-2307 (facsimile) jcp@petersenfirm.com Counsel for Defendants
CERTIFICATE OF SERVICE
I certify that on a true and accurate copy of the foregoing was served via first-class and electronic mail to:
Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Counsel for Plaintiff
J. Chapman Petersen
F CHAP PETERSEN & ASSOCIATES, PLC
J. Chapman Petersen+* Sharon Kim Petersen +also admitted in DC *also admitted in MD ^admitted in NY
J. Chapman Petersen jcp@petersenfirm.com Direct: 571-459-2510
Won Yung Uh Federico J. Zablah Christopher T. Robertson+ Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+
August 9, 2024
Via first-class and electronic mail
Jimmy F. Robinson, Jr., Esq. OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 jimmy.robinson@ogletreedeakins.com
Re:
Cyberlux Corporation, et al. v. Atlantic Wave Holding, LLC, et al.,
Case No. CL240002919-00, in the Circuit Court of the City of Richmond
Dear Mr. Robinson:
I sent you a letter on August 6th, attaching a draft notice for a corporate designee deposition in the above case. I also called and left you a message. To date, I've had no response. As your complaint seeks injunctive relief, it is imperative that this deposition occur as soon as possible. Therefore, I am noticing Cyberlux Corporation's corporate designee's deposition for Tuesday, August 27, 2024, commencing at 10:00 a.m. Pursuant to Rule 4:5, I am setting it for a location in the City of Richmond, i.e. the offices of Spotts Fain P.S., 411 E. Franklin Street, Suite 600, Richmond, VA 23219.
If you would like to set an alternative date, time, or location, please contact me and I'll be happy to work with you on that.
On a separate note, my firm has entered an appearance on behalf of the judgment creditor in Case No. CL22003882-00 ("the Judgment Case"), also pending in the Circuit Court of the City of Richmond. We will be replacing the current counsel, The Executive Law Group. Attached is a Motion for Substitution of Counsel and Agreed Order. I would appreciate if you could sign the Order and return it to me.
Finally, I will be present before Judge McKenney for the hearing on August 21st in the Judgment Case. It is my intention to withdraw the "Motion to Reverse" that was filed by my predecessor, while proceeding forward with Orders of Payment on the pending garnishment, as well as entry of Orders to reflect the Court's attorney fee awards. I will file Praecipes with the Court to reflect these anticipated actions.
Letter to Jimmy F. Robinson, Jr., Esq. August 9, 2024
I look forward to working with you and thanks.
Very truly yours, With
J. Chapman Petersen, Esq.
JCP Enclosures
cc:
client
Robert Keith Caudle, III, Esq.
Milton Johns, Esq.
J. Chapman Petersen jcp@petersenfirm.com Direct: 571-459-2510
Won Yung Uh Federico J. Zablah Christopher T. Robertson+ Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+
August 23, 2024
Via first-class and electronic mail
Jimmy F. Robinson, Jr., Esq. OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 jimmy.robinson@ogletreedeakins.com
Re:
Cyberlux Corporation, et al. v. Atlantic Wave Holding, LLC, et al.,
Case No. CL240002919-00, in the Circuit Court of the City of Richmond
Dear Mr. Robinson:
I sent you a letter on August 6th, attaching a draft notice for a corporate designee deposition in the above case and asking for dates. See attached copy of August 6th letter. I also called and left you a voice mail message on August 7th to that effect.
I never received a response.
In the absence of receiving a response, I served a notice on you for Cyberlux Corporation's corporate designee deposition for Tuesday, August 27, 2024, commencing at 10:00 a.m. at the offices of Spotts Fain P.S., 411 E. Franklin Street, Suite 600, Richmond, VA 23219. As I said in previous letters, it is imperative that we obtain this discovery based upon your clients' allegations and your request for emergency injunctive relief.
In the August 9th cover letter which accompanied the corporate notice, I offered an alternative date, time, or location, if you or your client would prefer for the deposition. See attached copy of August 9th letter and designee notice.
Again, I received no response.
It is now Friday, August 23rd. We have reserved a court reporter and will be present at the offices of Spotts Fain on Tuesday, August 27th in order to take the noticed deposition.
petersenfirm.com
Letter to Jimmy F. Robinson, Jr., Esq. August 23, 2024
I look forward to seeing you and your client there.
Very truly yours,
J. Chapman Petersen, Esq.
JCP Enclosures cc: client
J. Chapman Petersen jcp@petersenfirm.com Direct: 571-459-2510
Won Yung Uh Federico J. Zablah Christopher T. Robertson+ Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+
August 6, 2024
VIA ELECTRONIC MAIL
Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com
Re:
Cyberlux Corporation v. Atlantic Wave Holding, LLC, Case No. 240002919-0,
In the Circuit Court of the City of Richmond
Dear Mr. Robinson:
Attached please find a proposed corporate designee notice for taking your client's deposition in the above matter. You will note that we name both Mr. Schmidt and Cyberlux as deponents. If you designate Mr. Schmidt as the corporate representative, then that would likely cover both requests.
I've tentatively set this for Friday, August 23. If that date is unavailable, please let me know a date we can do this, preferably before the end of August. I've also set this tentatively for my office in Northern Virginia, assuming that may be more convenient for Mr. Schmidt. If not, then I will find a place in Richmond to do it, pursuant to Rule 4:5 of the Rules of the Supreme Court.
I look forward to working with you and thanks,
Very sincerely yours,
J. Chapman Petersen, Esq
JCP Enclosure
Copy: Client
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually ) )
)
Plaintiffs,
)
V.
) )
Case No: CL24002919-00
)
ATLANTIC WAVE HOLDINGS, LLC ) AND SECURE COMMUNITY, LLC ) )
Defendants.
)
To:
CYBERLUX CORPORATION and MARK D. SCHMIDT
c/o Jimmy F. Robinson, Jr., Esq.
Suite 1300
Richmond, VA 23219
Jimmy.robinson@ogletreedeakins.com
Counsel for Plaintiffs
PLEASE TAKE NOTICE on Friday, August 23, 2024 at 10:00 AM (Eastern Time), pursuant to Virginia Supreme Court Rule 4:5(b)(6), Defendants Atlantic Wave Holdings, LLC ("Atlantic Wave") and Secure Community, LLC ("Secure Community") (collectively "Defendants"), by Counsel, will proceed to take the deposition of a designated representative for Plaintiffs, Cyberlux Corporation ("Cyberlux" or "the Company") and Mark D. Schmidt ("Schmidt") (collectively, the "Plaintiffs"), at the law office of Chap Petersen and Associates, PLC, 3970 Chain Bridge Road, Fairfax, Virginia, 22030, for all purposes allowed under the Rules
of the Supreme Court of Virginia. Plaintiffs shall designate a representative(s) who can address the following matters:
a) CMTC Drone Solutions (Acquisition date: 8/31/2021).
b) FBD Group SHPK (Acquisition date: 10/21/2021).
c) Havas Group, S.A.S (Acquisition date: 10/29/2021).
d) Kreatx SHPK (Acquisition date: 12/27/2021).
e) Digital Automation Solution, LLC (Acquisition date: 2/3/2022).
f) Catalyst Machineworks, LLC (Acquisition date: 3/30/2022).
g) Datron World Communications (Acquisition: August 2023).
IT IS FURTHER NOTICED that such testimony will be taken stenographically before a Notary Public and may be videotaped. If for any reason the taking of the deposition is not commenced on that day, or if commenced and is not concluded on that day, the taking of the deposition will be continued from day-to-day until the same shall be completed.
Respectfully Submitted, ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC By Counsel
J. Chapman Petersen, Esq. (VSB #37225) Chap Petersen & Associates, PLC 3970 Chain Bridge Road Fairfax, Virginia 22030 (571) 459-2512 (telephone) (571) 459-2307 (facsimile) jcp@petersenfirm.com Counsel for Defendants
I certify that on a true and accurate copy of the foregoing was served via first-class and electronic mail to:
Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Counsel for Plaintiff
J. Chapman Petersen
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually
) ) )
Plaintiffs,
)
)
V.
)
)
ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC ) ) )
Defendants.
)
Case No: CL24002919-00
To:
CYBERLUX CORPORATION and MARK D. SCHMIDT
c/o Jimmy F. Robinson, Jr., Esq.
Suite 1300
Richmond, VA 23219
Jimmy.robinson@ogletreedeakins.com
Counsel for Plaintiffs
PLEASE TAKE NOTICE on Tuesday, August 27 2024 at 10:00 AM (Eastern Time), pursuant to Virginia Supreme Court Rule 4:5(b)(6), Defendants Atlantic Wave Holdings, LLC ("Atlantic Wave") and Secure Community, LLC ("Secure Community") (collectively "Defendants"), by Counsel, will proceed to take the deposition of a designated representative for Plaintiffs, Cyberlux Corporation ("Cyberlux" or "the Company") and/or Mark D. Schmidt ("Schmidt") (collectively, the "Plaintiffs"), at the law office of Spotts Fain, P.C., 411 E Franklin St # 600, Richmond, VA 23219, for all purposes allowed under the Rules of the Supreme Court of Virginia. Plaintiffs shall designate a representative(s) who can address the following matters:
a) CMTC Drone Solutions (Acquisition date: 8/31/2021).
b) FBD Group SHPK (Acquisition date: 10/21/2021).
c) Havas Group, S.A.S (Acquisition date: 10/29/2021).
d) Kreatx SHPK (Acquisition date: 12/27/2021).
e) Digital Automation Solution, LLC (Acquisition date: 2/3/2022).
f) Catalyst Machineworks, LLC (Acquisition date: 3/30/2022).
g) Datron World Communications (Acquisition: August 2023).
IT IS FURTHER NOTICED that such testimony will be taken stenographically before a Notary Public and may be videotaped. If for any reason the taking of the deposition is not commenced on that day, or if commenced and is not concluded on that day, the taking of the deposition will be continued from day-to-day until the same shall be completed.
Respectfully Submitted, ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC By Counsel
ASA
J. Chapman Petersen, Esq. (VSB #37225) Chap Petersen & Associates, PLC 3970 Chain Bridge Road Faimfax, Virginia 22030 (571)459-2512 (telephone) (571) 459-2307 (facsimile) jcp@petersenfirm.com Counsel for Defendants
I certify that on 2 day of August, 2024, a true and accurate copy of the foregoing was 24
served via first-class and electronic mail to:
Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Counsel for Plaintiff
But
J. Chapman Petersen
F CHAP PETERSEN & ASSOCIATES, PLC
J. Chapman Petersen+* Sharon Kim Petersen +also admitted in DC *also admitted in MD ^admitted in NY
J. Chapman Petersen jcp@petersenfirm.com Direct: 571-459-2510
Won Yung Uh Federico J. Zablah Christopher T. Robertson+ Dylan M. Phillips Patrick R. Corish+ Janice M. Jang^+
August 9, 2024
Via first-class and electronic mail
Jimmy F. Robinson, Jr., Esq. OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 901 East Byrd Street, Suite 1300 Riverfront Plaza, West Tower Richmond, VA 23219 jimmy.robinson@ogletreedeakins.com
Re:
Cyberlux Corporation, et al. v. Atlantic Wave Holding, LLC, et al.,
Case No. CL240002919-00, in the Circuit Court of the City of Richmond
Dear Mr. Robinson:
I sent you a letter on August 6th, attaching a draft notice for a corporate designee deposition in the above case. I also called and left you a message. To date, I've had no response. As your complaint seeks injunctive relief, it is imperative that this deposition occur as soon as possible. Therefore, I am noticing Cyberlux Corporation's corporate designee's deposition for Tuesday, August 27, 2024, commencing at 10:00 a.m. Pursuant to Rule 4:5, I am setting it for a location in the City of Richmond, i.e. the offices of Spotts Fain P.S., 411 E. Franklin Street, Suite 600, Richmond, VA 23219.
If you would like to set an alternative date, time, or location, please contact me and I'll be happy to work with you on that.
On a separate note, my firm has entered an appearance on behalf of the judgment creditor in Case No. CL22003882-00 ("the Judgment Case"), also pending in the Circuit Court of the City of Richmond. We will be replacing the current counsel, The Executive Law Group. Attached is a Motion for Substitution of Counsel and Agreed Order. I would appreciate if you could sign the Order and return it to me.
Finally, I will be present before Judge McKenney for the hearing on August 21st in the Judgment Case. It is my intention to withdraw the "Motion to Reverse" that was filed by my predecessor, while proceeding forward with Orders of Payment on the pending garnishment, as well as entry of Orders to reflect the Court's attorney fee awards. I will file Praecipes with the Court to reflect these anticipated actions.
Letter to Jimmy F. Robinson, Jr., Esq. August 9, 2024
I look forward to working with you and thanks.
Very truly yours, Kinh
J. Chapman Petersen, Esq.
JCP Enclosures
cc:
client
Robert Keith Caudle, III, Esq.
Milton Johns, Esq.
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION and MARK D. SCHMIDT, individually ) )
)
Plaintiffs,
)
v.
) )
Case No: CL24002919-00
ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC ) )
) )
Defendants.
)
To:
CYBERLUX CORPORATION and MARK D. SCHMIDT
c/o Jimmy F. Robinson, Jr., Esq.
Suite 1300
Richmond, VA 23219
Jimmy.robinson@ogletreedeakins.com
Counsel for Plaintiffs
PLEASE TAKE NOTICE on Tuesday, August 27 2024 at 10:00 AM (Eastern Time), pursuant to Virginia Supreme Court Rule 4:5(b)(6), Defendants Atlantic Wave Holdings, LLC ("Atlantic Wave") and Secure Community, LLC ("Secure Community") (collectively "Defendants"), by Counsel, will proceed to take the deposition of a designated representative for Plaintiffs, Cyberlux Corporation ("Cyberlux" or "the Company") and/or Mark D. Schmidt ("Schmidt") (collectively, the "Plaintiffs"), at the law office of Spotts Fain, P.C., 411 E Franklin St # 600, Richmond, VA 23219, for all purposes allowed under the Rules of the Supreme Court of Virginia. Plaintiffs shall designate a representative(s) who can address the following matters:
a) CMTC Drone Solutions (Acquisition date: 8/31/2021).
b) FBD Group SHPK (Acquisition date: 10/21/2021).
c) Havas Group, S.A.S (Acquisition date: 10/29/2021).
d) Kreatx SHPK (Acquisition date: 12/27/2021).
e) Digital Automation Solution, LLC (Acquisition date: 2/3/2022).
f) Catalyst Machineworks, LLC (Acquisition date: 3/30/2022).
g) Datron World Communications (Acquisition: August 2023).
IT IS FURTHER NOTICED that such testimony will be taken stenographically before a Notary Public and may be videotaped. If for any reason the taking of the deposition is not commenced on that day, or if commenced and is not concluded on that day, the taking of the deposition will be continued from day-to-day until the same shall be completed.
Respectfully Submitted, ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC By Counsel
Bus
J. Chapman Petersen, Esq. (VSB #37225) Chap Petersen & Associates, PLC 3970 Chain Bridge Road Fairfax, Virginia 22030 (571)459-2512 (telephone) (571) 459-2307 (facsimile) jep@petersenfirm.com Counsel for Defendants
I certify that on 24 day of August, 2024, a true and accurate copy of the foregoing was served via first-class and electronic mail to:
Jimmy F. Robinson, Jr., Esq. 901 East Byrd Street Suite 1300 Richmond, VA 23219 Jimmy.robinson@ogletreedeakins.com Counsel for Plaintiff
J. Chapman Petersen
pd
Planet Depos® We Make It Happen"
Transcript of Corporate Designee of Plaintiff's Cyberlux Corporation - SOTR
Date: August 27, 2024 Case: Cyberlux Corporation, et al. - v- Atlantic Wave Holdings, LLC, et al.
Planet Depos Phone: 888.433.3767 | Email: transcripts@planetdepos.com www.planetdepos.com Michigan #8598 | Nevada #089F | New Mexico #566
WORLDWIDE COURT REPORTING & LITIGATION TECHNOLOGY
VIRGINIA:
IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
CYBERLUX CORPORATION )
and MARK D. SCHMIDT, ) Individually, Plaintiffs, )
) Case No. CL24002019-00
V ) ATLANTIC WAVE HOLDINGS, LLC, ) and SECURE COMMUNITY, LCC, ) Defendants. )
STATEMENT OF NONAPPEARANCE Richmond, Virginia August 27, 2024 10:00 a.m.
Job No. 549531 Pages 1-8
Reported by: Carol M. Tayloe, RMR, CMRS, CRR
Transcript of Corporate Designee of Plaintiff's Cyberlux Corporation - SOTR Conducted on August 27, 2024
APPEARANCES ON BEHALF OF THE DEFENDANTS, ATLANTIC WAVE HOLDINGS, LLC, AND SECURE COMMUNITY, LLC: J. CHAPMAN PETERSEN, ESQUIRE
CHAP PETERSEN & ASSOCIATES, PLC 3970 Chain Bridge Road Fairfax, VA 22030 571-459-2512 jcp@petersenfirm.com
Also present: William Welter
DEPOSITION EXHIBIT
PAGE
CONTENTS
INDEX
MR. PETERSEN: Good morning, everybody. This is Chap Petersen. I represent the defendant in the case which is pending in the Circuit Court of the City of Richmond, which is Cyberlux Corporation and Mark Schmidt v Atlantic Wave Holdings, LLC, and Secured Community, LLC. The Case Number is CL24002919. And we're here today on a notice of deposition of Cyberlux Corporation and Mark Schmidt. It is a corporate designee deposition which was served on August 9.
I have three letters that I want to put into evidence, and I'm going to address them as Exhibit 1, which is a letter dated August 6, and I'm handing that to the court reporter so she can mark it.
(Deposition Exhibit 1 was marked for identification and retained by the court reporter.)
MR. PETERSEN: And the letter speaks for itself but it will represent that we were seeking a corporate designee deposition and we're proposing dates and the letter was sent by
first-class and electronic mail to Jimmy Robinson, who is the attorney for the plaintiff.
I'm next going to hand the court reporter Exhibit 2. The court reporter can identify that.
(Deposition Exhibit 2 was marked for identification and retained by the court reporter.)
MR. PETERSEN: And Exhibit 2, again, the cover letter addresses our request for a corporate designee deposition and it actually attaches the corporate designee notice which has been sent -- served on opposing counsel and why we're here today. That was served by electronic mail and first-class mail on August 9th.
And then finally I have Exhibit 3. And Exhibit 3, I'm attaching a letter which was sent out by first-class mail and electronic mail, and this was sent out on August 23rd. So if the court reporter could mark Exhibit 3.
(Deposition Exhibit 3 was marked for identification and retained by the court reporter.)
MR. PETERSEN: So it is now 10:09 on Tuesday afternoon, the date that we noticed the deposition. We are at the offices of Spotts Fain, LLC, on Franklin Street in Downtown Richmond. I am here with my client. I have three books of exhibits so I can go through those exhibits with the witness, and there's no witness.
And I will proffer to the Court that I got an e-mail at 5:48 p.m. last night. I actually didn't receive it. I was already in Richmond. But it was forwarded to me by my legal team just saying that the witness was not going to appear and did not agree to appear.
Prior to that time I had received no response to my letters or phone call and basically had received no objection, no motion to quash. I had no notice whatsoever that this deposition would not be going forward.
I have come down from Fairfax, I have a court reporter that has traveled from Virginia Beach, I have a client that's here. My team spent several hours pulling together exhibits which I
have to examine the witness. I've also spent several hours, completed an outline of questions, and there's no one here to question.
So what we will do is we will adjourn the deposition to another time and I will file a motion to compel the attendance of the witness and for any other remedies that we're entitled to under Virginia law.
It now being 10:11 a.m., I think that completes what I need to put on the record. And I thank everyone for their time and being here and I apologize for any wasted time. Thank you.
(Off the record at 10:11 a.m.)
COURT REPORTER'S CERTIFICATE
I, Carol M. Tayloe, RMR, CMRS, CCR, certify that I recorded verbatim by stenotype the proceedings in the captioned cause, Richmond, Virginia, on August 27, 2024.
I further certify that to the best of my knowledge and belief, the foregoing transcript constitutes a true and correct transcript of the said proceedings.
Given under my hand this 27th day of August, 2024, at Norfolk, Virginia. Carol M. Jagle
Carol M. Tayloe
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2:5
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4:17, 5:3, 5:4,
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1:9, 2:2, 4:5
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5:4, 5:5, 5:8,
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1:4, 4:4, 4:8
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8:12
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4:13
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9/1/24, Case 13:24-cv-00482-RBM-VET Document:291er Filed 09/03/24TcRageID.882 Page 118 of 164 On- Markets
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Cyberlux
Profile Details
Corp. Common Stock
Limited Information
:selected: Verified Profile
QX SBIG35.07 % QX MRA27.91 %
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QUOTE
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Sean C. Coughlin, Esq. (SBN 167900) scoughlin@noonanlance.com Ethan T. Boyer, Esq. (SBN 173959) eboyer@noonanlance.com Sara K. Gediman, Esq. (SBN 337792) sgediman@noonanlance.com NOONAN LANCE BOYER & BANACH LLP 701 Island Avenue, Suite 400 San Diego, California 92101 Telephone: (619) 780-0880 Facsimile: (619) 780-0877
Attorneys for Plaintiff RB Capital Partners, Inc.
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA
RB CAPITAL PARTNERS, INC., a California Corporation,
Plaintiff,
VS.
CYBERLUX CORPORATION, a Nevada Corporation; DOES 1 through 10,
Defendants.
Case No .: '24CV1434 AJB BJC
COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF
DEMAND FOR JURY TRIAL
Plaintiff RB Capital Partners, Inc., by and through its attorneys, allege against Defendant Cyberlux Corporation, and Does 1-10, inclusive, as follows:
Schmidt also directs and controls the operations of CYBERLUX's California business unit Datron. The promissory notes that are the subject of this action provide that "This Note is being delivered in and shall be construed in accordance with the laws of the State of California, without regard to the conflicts of law provisions thereof." CYBERLUX's agreement to be bound by the laws of the State of California further confirms its purposeful availment of the benefits and protections of the State of California and reinforce its deliberate affiliation with the State of California and the reasonable foreseeability of being subject to possible litigation in this state. Exercising jurisdiction would be fair and just.
Note Date:
Principal
Interest 5% (7/15/24)
Total (7/15/24)
10/22/21
$1,418,000 (includes credit for a $250,000 payment made on 12/19/23)
$40,175
$1,458,175
11/8/21
$1,500,000
$201,560
$1,701,560
11/22/21
$1,500,000
$198,435
$1,698,435
5/23/22
$500,000
$ 53,640
$553,640
7/12/22
$250,000
$ 25,150
$275,150
Totals
$5,168,000
$5,686,960
WHEREFORE, RB CAPITAL prays for judgment as follows:
Dated: August 12, 2024
NOONAN LANCE BOYER & BANACH LLP
By: Sean C. Coughlin Ethan T. Boyer Sara K. Gediman Attorneys for Plaintiff RB CAPITAL PARTNERS, INC.
JS 44 (Re-BES)
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
RB Capital Partners, Inc., a California Corporation
(b) County of Residence of First Listed Plaintiff San Diego
(EXCEPT IN U.S. PLAINTIFF CASES)
(c) Attorneys (Firm Name, Address, and Telephone Number)
Sean C. Coughlin, Esq.
NOONAN LANCE BOYER & BANACH LLP
Cyberlux Corporation, a Nevada Corporation County of Residence of First Listed Defendant Durham County (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.
Attorneys (If Known)
'24 CV1434 AJB BJC
II. BASIS OF JURISDICTION (Place an "X" in One Box Only) 4 :unselected: 1 U.S. Government Plaintiff :unselected: 3 Federal Question (U.S. Government Not a Party) :unselected: 2 U.S. Government Defendant :selected: Diversity (Indicate Citizenship of Parties in Item III)
III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an "X" in One Box for Plaintiff and One Box for Defendant)
(For Diversity Cases Only)
PTF
DEF
PTF
DEF
Citizen of This State
:selected: 1
:unselected: 1 Incorporated or Principal Place of Business In This State
:unselected: 4
:unselected: 4
Citizen of Another State
:unselected: 2
:unselected: 2 Incorporated and Principal Place of Business In Another State
:unselected: 5
:selected: 5
Citizen or Subject of a Foreign Country
:unselected: 3
:unselected: 3 Foreign Nation
:unselected: 6
:unselected: 6
Click here for: Nature of Suit Code Descriptions.
BANKRUPTCY
OTHER STATUTES
CONTRACT
TORTS
FORFEITURE/PENALTY
:unselected: 110 Insurance
PERSONAL INJURY
PERSONAL INJURY
:unselected: :unselected: 625 Drug Related Seizure of Property 21 USC 881 690 Other
:unselected: 120 Marine
:unselected: 310 Airplane
:unselected: 365 Personal Injury -
:unselected: 130 Miller Act
:unselected: 315 Airplane Product
Product Liability
:unselected: 140 Negotiable Instrument
Liability
:unselected: 367 Health Care/
:unselected: 150 Recovery of Overpayment
:unselected: 320 Assault, Libel &
Pharmaceutical
& Enforcement of Judgment
Slander
Personal Injury
:unselected: 151 Medicare Act
:unselected: 330 Federal Employers'
Product Liability
:unselected: 152 Recovery of Defaulted
Liability
:unselected: 368 Asbestos Personal
Student Loans
:unselected: 340 Marine
Injury Product
(Excludes Veterans)
:unselected: 345 Marine Product
Liability
:unselected: 153 Recovery of Overpayment
Liability
PERSONAL PROPERTY
LABOR
of Veteran's Benefits
:unselected: 350 Motor Vehicle
:unselected: 370 Other Fraud
:unselected: 710 Fair Labor Standards Act
:unselected: 160 Stockholders' Suits
:unselected: 355 Motor Vehicle
:unselected: 371 Truth in Lending
:selected: 190 Other Contract
Product Liability
:unselected: 380 Other Personal
:unselected: :unselected: :unselected: 720 Labor/Management Relations 740 Railway Labor Act 751 Family and Medical Leave Act
:unselected: 195 Contract Product Liability
:unselected: 360 Other Personal
Property Damage
:unselected: 196 Franchise
Injury :unselected: 362 Personal Injury -
:unselected: 385 Property Damage Product Liability
Medical Malpractice
REAL PROPERTY
CIVIL RIGHTS
PRISONER PETITIONS
:unselected: :unselected: 790 Other Labor Litigation 791 Employee Retirement
:unselected: 210 Land Condemnation
:unselected: 440 Other Civil Rights
Habeas Corpus:
:unselected: 220 Foreclosure
:unselected: 441 Voting
:unselected: 463 Alien Detainee
Income Security Act
:unselected: 230 Rent Lease & Ejectment
:unselected: 442 Employment
:unselected: 510 Motions to Vacate
:unselected: 240 Torts to Land
:unselected: 443 Housing/
Sentence
:unselected: 245 Tort Product Liability
Accommodations
:unselected: 530 General
:unselected: 290 All Other Real Property
:unselected: 445 Amer. w/Disabilities -
:unselected: 535 Death Penalty
IMMIGRATION
Employment
Other:
:unselected: :unselected: 462 Naturalization Application 465 Other Immigration Actions
:unselected: 446 Amer. w/Disabilities -
:unselected: 540 Mandamus & Other
Other
:unselected: 550 Civil Rights
:unselected: 448 Education
:unselected: 555 Prison Condition
:unselected: 560 Civil Detainee -
Conditions of
Confinement
:unselected: 423 Withdrawal 28 USC 157 :unselected: 422 Appeal 28 USC 158 :unselected: 375 False Claims Act :unselected: 376 Qui Tam (31 USC 3729(a)) :unselected: 400 State Reapportionment
:unselected: 820 Copyrights :unselected: 830 Patent :unselected: 835 Patent - Abbreviated
:unselected: 840 Trademark :unselected: 880 Defend Trade Secrets Act of 2016
New Drug Application :unselected: 470 Racketeer Influenced and Corrupt Organizations :unselected: 480 Consumer Credit (15 USC 1681 or 1692) :unselected: 485 Telephone Consumer Protection Act
SOCIAL SECURITY :unselected: 861 HIA (1395ff) :unselected: 862 Black Lung (923) :unselected: 863 DIWC/DIWW (405(g)) :unselected: 864 SSID Title XVI :unselected: 865 RSI (405(g))
:unselected: 490 Cable/Sat TV
:unselected: 850 Securities/Commodities/ Exchange :unselected: 890 Other Statutory Actions :unselected: 891 Agricultural Acts :unselected: 893 Environmental Matters :unselected: 895 Freedom of Information Act
FEDERAL TAX SUITS :unselected: 870 Taxes (U.S. Plaintiff or Defendant) :unselected: 871 IRS-Third Party 26 USC 7609
:unselected: 896 Arbitration :unselected: 899 Administrative Procedure Act/Review or Appeal of Agency Decision :unselected: 950 Constitutionality of State Statutes
V. ORIGIN (Place an "X" in One Box Only) :selected: 1 Original Proceeding :unselected: 2 Removed from State Court :unselected: 3 Remanded from Appellate Court :unselected: 4 Reinstated or Reopened :unselected: 5 Transferred from Another District (specify) :unselected: 6 Multidistrict Litigation - Transfer
:unselected: 8 Multidistrict Litigation - Direct File
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): 28 U.S.C. §1332
VI. CAUSE OF ACTION
Brief description of cause:
Breach of Promissory Notes
VII. REQUESTED IN
:unselected: CHECK IF THIS IS A CLASS ACTION
DEMAND $
CHECK YES only if demanded in complaint:
COMPLAINT:
UNDER RULE 23, F.R.Cv.P.
5,686,960
JURY DEMAND: :selected: :unselected: Yes No
VIII. RELATED CASE(S)
IF ANY
(See instructions): JUDGE
DOCKET NUMBER
DATE
August 12, 2024
SIGNATURE OF ATTORNEY OF RECORD R.L.LOL
FOR OFFICE USE ONLY
RECEIPT #
AMOUNT
APPLYING IFP
JUDGE
MAG. JUDGE
INTELLECTUAL PROPERTY RIGHTS :unselected: 410 Antitrust :unselected: 430 Banks and Banking :unselected: 450 Commerce :unselected: 460 Deportation
JS 4 Re CaseC3.84-6.12.00048012 BAJAJBB JDo Don201- Filed 09/03/2/2-198 Page 2 of 164 INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44
Authority For Civil Cover Sheet
The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows:
I.(a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title.
(b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved.)
(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting in this section "(see attachment)".
II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.
United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here. United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box. Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be marked.
Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity cases.)
III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section for each principal party.
IV. Nature of Suit. Place an "X" in the appropriate box. If there are multiple nature of suit codes associated with the case, pick the nature of suit cod that is most applicable. Click here for: Nature of Suit Code Descriptions.
V. Origin. Place an "X" in one of the seven boxes.
Original Proceedings. (1) Cases which originate in the United States district courts. Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date.
Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date. Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrict litigation transfers.
Multidistrict Litigation - Transfer. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407.
Multidistrict Litigation - Direct File. (8) Check this box when a multidistrict case is filed in the same district as the Master MDL docket. PLEASE NOTE THAT THERE IS NOT AN ORIGIN CODE 7. Origin Code 7 was used for historical records and is no longer relevant due to changes in statute.
VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service.
VII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction. Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.
VIII. Related Cases. This section of the JS 44 is used to reference related cases, if any. If there are related cases, insert the docket numbers and the corresponding judge names for such cases.
Date and Attorney Signature. Date and sign the civil cover sheet.
INDEX TO EXHIBITS
Description
Page(s)
True and correct copy of Convertible Promissory Note executed by Cyberlux in favor of RB Capital dated 10/22/21
8-14
True and correct copy of Convertible Promissory Note executed by Cyberlux in favor of RB Capital dated 11/8/21
15-21
True and correct copy of Convertible Promissory Note executed by Cyberlux in favor of RB Capital dated 11/22/21
22-28
True and correct copy of Convertible Promissory Note executed by Cyberlux in favor of RB Capital dated 5/23/22
29-35
True and correct copy of Convertible Promissory Note executed by Cyberlux in favor of RB Capital dated 7/12/22
36-42
Caseas&43c24004-32-RBINAJE-BJOO@meme29-1-3Fileited908BY2424Pagag DI.8940 Frage 1130for 164
THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.
CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE
Principal Amount: $1,500,000.00 USD
October 22, 2021
WHEREAS on October 22, 2021, RB Capital Partners, Inc., with its offices at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling, $1,500,000.00 to Cyberlux Corp., a Nevada corporation with its office at 800 Park Offices Drive .; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Company in the form of a Wire Transfer.
WHEREAS the Company and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.25 in accordance with Section 3 below;
NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows:
1.1 The Company, for value received, hereby promises to pay to the order of the Holder the sum of One Million Five Hundred Thousand Dollars ($1,500,000.00), which amount represents the amount owed to Holder as of October 22, 2021.
1.2 This Convertible Promissory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed.
1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellation.
1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate.
3.1 Voluntary Conversion. The Holder shall have the right, exercisable in whole or in part, to convert the outstanding principal into a number of fully paid and non-assessable whole shares of the Company's $0.001 Par Value common stock ("Common Stock") determined in accordance with Section 3.2 below.
3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted (the "Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed hereunder by $0.25 (the "Note Conversion Price"); provided, however, that, in no event, shall Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common stock beneficially owned by Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in the beneficial ownership by Holder and its affiliates of more than 4.99% of the outstanding shares of common stock of the Company. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Note Conversion Price. The Term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus, (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided; however, that the Company shall have the right to pay any or all interest in cash.
3.3 Notice and Conversion Procedures. After receipt of demand for repayment, the Company agrees to give the Holder notice at least five (5) business days prior to the time that the Company repays this Note. If the Holder elects to convert this Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock
issuable upon such conversion and, if the entire principal amount was not so converted, a new note representing such balance.
(a) Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a reverse stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a forward stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected.
(b) Common Stock Defined. Whenever reference is made in this Note to the shares of Common Stock, the term "Common Stock" shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.
3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder the amount of outstanding principal hereunder that is not so converted.
(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.
(c) No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its
Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.
(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.
(b) Private Issue. The Holder understands (i) that this Note and the Common Stock issuable upon conversion of this Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.
(c) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.
(d) Risk of No Registration. The Holder understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Note, it may be required to hold such securities for an indefinite period. The Holder also understands that any sale of the Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.
thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.
Caseas243c240048-BIAJE-BJOO@meme9-1-3Fileited908BY2424Paga DI.9006 FPaage 1736for 164
IN WITNESS WHEREOF, Cyberlux Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written.
CYBERLUX CORP.
Date: October 22, 2021
By Just Kamate
Mark Schmidt Its: CEO & Director
RB CAPITAL PARTNERS, INC.
Date: October 22, 2021
By: Brett Rasen
Brett Rosen Its: Managing Member
Case as243ca 4004.32-RBINAVE-BJOO@meme29-1-4Fileited908BY2424Pagag DI.9017 Praage 11@for 164
THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.
CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE
Principal Amount: $1,500,000.00 USD
November 8, 2021
WHEREAS on November 8, 2021, RB Capital Partners, Inc., with its offices at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling, $1,500,000.00 to Cyberlux Corp., a Nevada corporation with its office at 800 Park Offices Drive .; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Company in the form of a Wire Transfer.
WHEREAS the Company and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.25 in accordance with Section 3 below;
NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows:
1.1 The Company, for value received, hereby promises to pay to the order of the Holder the sum of One Million Five Hundred Thousand Dollars ($1,500,000.00), which amount represents the amount owed to Holder as of November 8, 2021.
1.2 This Convertible Promissory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed.
1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellation.
1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate.
3.1 Voluntary Conversion. The Holder shall have the right, exercisable in whole or in part, to convert the outstanding principal into a number of fully paid and non-assessable whole shares of the Company's $0.001 Par Value common stock ("Common Stock") determined in accordance with Section 3.2 below.
3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted (the "Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed hereunder by $0.25 (the "Note Conversion Price"); provided, however, that, in no event, shall Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common stock beneficially owned by Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in the beneficial ownership by Holder and its affiliates of more than 4.99% of the outstanding shares of common stock of the Company. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Note Conversion Price. The Term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus, (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided; however, that the Company shall have the right to pay any or all interest in cash.
3.3 Notice and Conversion Procedures. After receipt of demand for repayment, the Company agrees to give the Holder notice at least five (5) business days prior to the time that the Company repays this Note. If the Holder elects to convert this Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock
issuable upon such conversion and, if the entire principal amount was not so converted, a new note representing such balance.
(a) Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a reverse stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a forward stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected.
(b) Common Stock Defined. Whenever reference is made in this Note to the shares of Common Stock, the term "Common Stock" shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.
3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder the amount of outstanding principal hereunder that is not so converted.
(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.
(c) No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its
Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.
(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.
(b) Private Issue. The Holder understands (i) that this Note and the Common Stock issuable upon conversion of this Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.
(c) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.
(d) Risk of No Registration. The Holder understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Note, it may be required to hold such securities for an indefinite period. The Holder also understands that any sale of the Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.
thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, Cyberlux Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written.
CYBERLUX CORP.
Date: November 8, 2021
By Mark Schmidt Its: CEO & Director
RB CAPITAL PARTNERS, INC.
Date: November 8, 2021
By: Brett Rasen
Brett Rosen Its: Managing Member
Caseas243ca400432-RBIVAJE-BJOO@Doceme9-1-5Fileited908BY2424Pagag DI.9024 Frage 114@fo7 164
THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.
CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE
Principal Amount: $1,500,000.00 USD
November 22, 2021
WHEREAS on November 22, 2021, RB Capital Partners, Inc., with its offices at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling, $1,500,000.00 to Cyberlux Corp., a Nevada corporation with its office at 800 Park Offices Drive .; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Company in the form of a Wire Transfer.
WHEREAS the Company and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.25 in accordance with Section 3 below;
NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows:
1.1 The Company, for value received, hereby promises to pay to the order of the Holder the sum of One Million Five Hundred Thousand Dollars ($1,500,000.00), which amount represents the amount owed to Holder as of November 22, 2021.
1.2 This Convertible Promissory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed.
1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellation.
1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate.
3.1 Voluntary Conversion. The Holder shall have the right, exercisable in whole or in part, to convert the outstanding principal into a number of fully paid and non-assessable whole shares of the Company's $0.001 Par Value common stock ("Common Stock") determined in accordance with Section 3.2 below.
3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted (the "Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed hereunder by $0.25 (the "Note Conversion Price"); provided, however, that, in no event, shall Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common stock beneficially owned by Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in the beneficial ownership by Holder and its affiliates of more than 4.99% of the outstanding shares of common stock of the Company. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Note Conversion Price. The Term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus, (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided; however, that the Company shall have the right to pay any or all interest in cash.
3.3 Notice and Conversion Procedures. After receipt of demand for repayment, the Company agrees to give the Holder notice at least five (5) business days prior to the time that the Company repays this Note. If the Holder elects to convert this Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock
issuable upon such conversion and, if the entire principal amount was not so converted, a new note representing such balance.
(a) Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a reverse stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a forward stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected.
(b) Common Stock Defined. Whenever reference is made in this Note to the shares of Common Stock, the term "Common Stock" shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.
3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder the amount of outstanding principal hereunder that is not so converted.
(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.
(c) No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its
Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.
(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.
(b) Private Issue. The Holder understands (i) that this Note and the Common Stock issuable upon conversion of this Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.
(c) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.
(d) Risk of No Registration. The Holder understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Note, it may be required to hold such securities for an indefinite period. The Holder also understands that any sale of the Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.
thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.
[SIGNATURE PAGE TO FOLLOW]
Case as243c24004-32-RBINAJE-BJOO@cam 9-1-5Fileited908BY2424Pagag DI.9130 Fraage 150for 164
IN WITNESS WHEREOF, Cyberlux Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written.
CYBERLUX CORP.
Date: November 22, 2021
By neut kkwill Mark Schmidt Its: CEO & Director
RB CAPITAL PARTNERS, INC.
Date: November 22, 2021
By: Brett Rosen Its: Managing Member
Caseas&43ca400432-RBINAME-BJOO@meme29-1-6Fileited908BY2424PagagDI.9131 Frange 156for 164
THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.
CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE
Principal Amount: $500,000.00 USD
May 23, 2022
WHEREAS on May 23, 2022, RB Capital Partners, Inc., with its offices at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling, $500,000.00 to Cyberlux Corp., a Nevada corporation with its office at 800 Park Offices Drive .; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Company in the form of a Wire Transfer.
WHEREAS the Company and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.25 in accordance with Section 3 below;
NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows:
1.1 The Company, for value received, hereby promises to pay to the order of the Holder the sum of Five Hundred Thousand Dollars ($500,000.00), which amount represents the amount owed to Holder as of May 23, 2022.
1.2 This Convertible Promissory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed.
1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellation.
1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate.
3.1 Voluntary Conversion. The Holder shall have the right, exercisable in whole or in part, to convert the outstanding principal into a number of fully paid and non-assessable whole shares of the Company's $0.001 Par Value common stock ("Common Stock") determined in accordance with Section 3.2 below.
3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted (the "Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed hereunder by $0.25 (the "Note Conversion Price"); provided, however, that, in no event, shall Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common stock beneficially owned by Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in the beneficial ownership by Holder and its affiliates of more than 4.99% of the outstanding shares of common stock of the Company. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Note Conversion Price. The Term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus, (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided; however, that the Company shall have the right to pay any or all interest in cash.
3.3 Notice and Conversion Procedures. After receipt of demand for repayment, the Company agrees to give the Holder notice at least five (5) business days prior to the time that the Company repays this Note. If the Holder elects to convert this Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock
issuable upon such conversion and, if the entire principal amount was not so converted, a new note representing such balance.
(a) Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a reverse stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a forward stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be affected.
(b) Common Stock Defined. Whenever reference is made in this Note to the shares of Common Stock, the term "Common Stock" shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.
3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder the amount of outstanding principal hereunder that is not so converted.
(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.
(c) No Violation, The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its
Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.
(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.
(b) Private Issue. The Holder understands (i) that this Note and the Common Stock issuable upon conversion of this Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.
(c) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.
(d) Risk of No Registration. The Holder understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Note, it may be required to hold such securities for an indefinite period. The Holder also understands that any sale of the Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.
thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.
IN WITNESS WHEREOF, Cyberlux Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written.
CYBERLUX CORP.
Date: May 23, 2022
By Mart D. Schmitt Mark Schmidt Its: CEO & Director
RB CAPITAL PARTNERS, INC.
Date: May 23, 2022
By: Brett Rasen
Brett Rosen Its: Managing Member
Caseas&43c2 400482-RBIAJE-BJOO@meme29-1-7Fileited908BY2424Paga DI.928 Frange158for 164
THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.
CYBERLUX CORP. CONVERTIBLE PROMISSORY NOTE
Principal Amount: $250,000.00 USD
July 12, 2022
WHEREAS on July 12, 2022, RB Capital Partners, Inc., with its offices at 2856 Torrey Pines Road, La Jolla, California 92037 (the "Holder") loaned funds totaling, $250,000.00 to Cyberlux Corp., a Nevada corporation with its office at 800 Park Offices Drive .; Suite 3209; Research Triangle Park, NC 27709 (the "Company"). Payment for the loan was made directly to the Company in the form of a Wire Transfer.
WHEREAS the Company and Holder further agreed that such services provided by the Holder to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of $0.10 in accordance with Section 3 below;
NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows:
1.1 The Company, for value received, hereby promises to pay to the order of the Holder the sum of Two Hundred Fifty Thousand Dollars ($250,000.00), which amount represents the amount owed to Holder as of July 12, 2022.
1.2 This Convertible Promissory Note (the "Note") shall bear five percent (5%) interest per annum. The Note is for a period of (24) months and cannot be converted until (6) months from the date first written above has passed.
1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellation.
1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Holder hereof as such Holder shall from time to time designate.
3.1 Voluntary Conversion. The Holder shall have the right, exercisable in whole or in part, to convert the outstanding principal into a number of fully paid and non-assessable whole shares of the Company's $0.001 Par Value common stock ("Common Stock") determined in accordance with Section 3.2 below.
3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted (the "Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed hereunder by $0.10 (the "Note Conversion Price"); provided, however, that, in no event, shall Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common stock beneficially owned by Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in the beneficial ownership by Holder and its affiliates of more than 4.99% of the outstanding shares of common stock of the Company. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Note Conversion Price. The Term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus, (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided; however, that the Company shall have the right to pay any or all interest in cash.
3.3 Notice and Conversion Procedures. After receipt of demand for repayment, the Company agrees to give the Holder notice at least five (5) business days prior to the time that the Company repays this Note. If the Holder elects to convert this Note, the Holder shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Holder certificate(s) for the Common Stock
issuable upon such conversion and, if the entire principal amount was not so converted, a new note representing such balance.
3.4 Other Conversion Provisions.
(a) Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a reverse stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be unaffected. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a forward stock split and subdivision of the Company's issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be unaffected.
(b) Common Stock Defined. Whenever reference is made in this Note to the shares of Common Stock, the term "Common Stock" shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.
3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder the amount of outstanding principal hereunder that is not so converted.
(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.
(c) No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its
Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.
(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.
(b) Private Issue. The Holder understands (i) that this Note and the Common Stock issuable upon conversion of this Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.
(c) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.
(d) Risk of No Registration. The Holder understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Note, it may be required to hold such securities for an indefinite period. The Holder also understands that any sale of the Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.
thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, Cyberlux Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written.
CYBERLUX CORP.
Date: July 12, 2022
By Mark D. Schmidt Mark Schmidt Its: CEO & Director
RB CAPITAL PARTNERS, INC.
Date: July 12, 2022
By: Brett Rosen
Brett Rosen Its: Managing Member
Original source file
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- Full SHA-256
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