Evidence Record

Declaration of Mark D. Schmidt in Support of Cyberlux Corporation’s Motion to Vacate Sister-State Judgment

1. I am the President and Chief Executive Officer of Cyberlux Corporation ("Cyberlux"), the entity against which Atlantic Wave Holdings, LLC and Secure Community LLC sought and obtained entry of a Sister-State Judgment. I...

Type
declaration
Court
SDCAL
Case
Atlantic Wave / Cyberlux litigation
Pages
24
Lines
734
SHA-256
6cbd94fce613

DISTIL analysis

DISTIL Run
Profile
Standard
Version
1
Doc Type
Legal Declaration with Exhibits
Total Nodes
33
Node Legend
Entity (ENT)
Event (EVT)
Claim (CLM)
Anchor (ANC)
Omission (OMI)
Tension (TEN)
Tell (TEL)
Inference (INF)
Hypothesis (HYP)
Stage 1
Index
Orientation · No nodes
Document Classification
Legal Declaration with Exhibits Mark D. Schmidt, President and CEO of Cyberlux Corporation Civil litigation - Motion to Vacate Sister-State Judgment June 2023 - April 2024
contains_sealed_exhibitpayment_disputesettlement_breach_allegation
Analytical Frame
Contract dispute over settlement agreement payments
Analytical Summary
This declaration by Mark D. Schmidt supports Cyberlux Corporation's motion to vacate a sister-state judgment entered in California based on a Virginia settlement. Schmidt asserts that Cyberlux made substantial payments totaling $779,616.14 toward a settlement agreement arising from Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation in Virginia Circuit Court. The settlement required payments to Atlantic Wave and Strikepoint Consulting, with a total combined principal of $1,760,363.89. Schmidt claims payments were either timely under the settlement terms or made pursuant to agreed modifications, including an alleged "overage" of $167,402.56 following a $575,000 payment in September 2023. The declaration includes wire transfer confirmations as exhibits and references a sealed settlement agreement, positioning Cyberlux's compliance as defense against enforcement of the Virginia judgment in California.
Key Points
  • Cyberlux entered settlement agreement on June 15, 2023 for Virginia lawsuit
  • Settlement judgment entered June 28, 2023 for total $1,572,500 plus fees
  • Cyberlux made 12 payments totaling $779,616.14 between July 2023 and April 2024
  • Schmidt claims parties agreed to modified payment plan post-settlement
  • Alleged overpayment of $167,402.56 created credit toward future payments
  • Declaration filed in support of motion to vacate California sister-state judgment
Stage 2
Core — Entities, Events, Claims
17 nodes
ENT-001
Entity
Mark D. Schmidt
President and Chief Executive Officer of Cyberlux Corporation, individual defendant in Virginia Action, declarant in California motion to vacate
Page 2 — I am the President and Chief Executive Officer of Cyberlux Corporation ("Cyberlux"), the entity against which Atlantic Wave Holdings, LLC and Secure Community LLC sought and obtained entry of a Sister-State Judgment.
ENT-002
Entity
Cyberlux Corporation
Nevada corporation, defendant in Virginia and California litigation, party to settlement agreement
Page 1 — CYBERLUX CORPORATION, a Nevada Corporation; Defendant.
ENT-003
Entity
Atlantic Wave Holdings, LLC
Virginia limited liability company, plaintiff in Virginia Action and California enforcement action, settlement payee
Page 1 — ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company; and SECURE COMMUNITY, LLC, a Virginia limited Liability company, Plaintiffs
ENT-004
Entity
Secure Community, LLC
Virginia limited liability company, co-plaintiff with Atlantic Wave in both Virginia and California actions
Page 1 — ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company; and SECURE COMMUNITY, LLC, a Virginia limited Liability company, Plaintiffs
ENT-005
Entity
Strikepoint Consulting, LLC
Third-party beneficiary of settlement agreement, recipient of monthly payments from Cyberlux
Page 2 — On or about June 15, 2023, Cyberlux, myself, Atlantic Wave Holdings, LLC ("Atlantic Wave"), Secure Community, LLC ("Secure"), and Strikepoint Consulting, LLC ("Strikepoint") entered into a settlement agreement
ENT-006
Entity
William Welter
Principal and legal counsel for Atlantic Wave Holdings, confirmed overage amount following September 2023 payment
Page 3 — Further, as confirmed by William Welter, Atlantic Wave's principal and legal counsel, following Cyberlux's overpayment of September 8, 2023, equal to $575,000, Cyberlux had an "overage" of $167,402.56 to apply to future payments.
EVT-001
Event
Settlement Agreement Execution
On June 15, 2023, all parties including Cyberlux, Schmidt, Atlantic Wave, Secure Community, and Strikepoint entered into settlement agreement resolving Virginia litigation
Page 2 — On or about June 15, 2023, Cyberlux, myself, Atlantic Wave Holdings, LLC ("Atlantic Wave"), Secure Community, LLC ("Secure"), and Strikepoint Consulting, LLC ("Strikepoint") entered into a settlement agreement ("Settlement Agreement") arising from the lawsuit entitled Atlantic Wave Holdings, LLC; and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt, Circuit Court of the City of Richmond, Virginia, Case No. CL22-3882 (the "Virginia Action").
EVT-002
Event
Settlement Judgment Entry
Virginia Circuit Court entered Amended Final Order and Judgement on June 28, 2023, awarding plaintiffs $1,572,500 in damages plus $177,126.19 attorney fees
Page 2, 8, 9 — Pursuant to the terms of the Settlement Agreement, an Amended Final Order and Judgement [sic] ("Settlement Judgement") was filed and entered in the Virginia Action on June 28, 2023... The Court awards Plaintiffs the sum of ONE MILLION FIVE HUNDRED SEVENTY-TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500) in compensatory damages... the Plaintiffs be awarded all of their costs, including reasonable attorney's fees of $177,126.19
EVT-003
Event
July 2023 Initial Payments
Cyberlux made three payments to Atlantic Wave on July 3, 2023 totaling $20,616.14
Page 3 — 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
EVT-004
Event
September 2023 Large Payment
Cyberlux made $575,000 payment to Atlantic Wave and $50,000 to Strikepoint on September 8, 2023
Page 3, 12 — 9/8/2023 Atlantic Wave Holdings, LLC $575,000.00; 9/8/2023 Strikepoint Consulting, LLC $50,000.00... From: Kerri Thebado... Sent: Friday, September 8, 2023 4:03:28 PM... Subject: RE: Confirmation of Atlantic Wave and Strikepoints wires. Yes they have been
EVT-005
Event
Monthly Strikepoint Payments Oct 2023 - Apr 2024
Cyberlux made seven monthly payments of $19,000-$20,000 to Strikepoint from October 2023 through April 2024
Page 3 — 10/4/2023 Strikepoint Consulting, LLC $20,000.00; 11/2/2023 Strikepoint Consulting, LLC $19,000.00; 12/4/2023 Strikepoint Consulting, LLC $19,000.00; 1/2/2024 Strikepoint Consulting, LLC $19,000.00; 2/1/2024 Strikepoint Consulting, LLC $19,000.00; 3/1/2024 Strikepoint Consulting, LLC $19,000.00; 4/1/2024 Strikepoint Consulting, LLC $19,000.00
EVT-006
Event
California Sister-State Judgment Filing
Atlantic Wave and Secure Community filed to enforce Virginia judgment in California, Case No. 3:24-cv-00482-RBM-VET
Page 1 — Case No. 3:24-cv-00482-RBM-VET... DECLARATION OF MARK D. SCHMIDT IN SUPPORT OF CYBERLUX CORPORATION'S MOTION TO VACATE SISTER-STATE JUDGMENT
CLM-001
Claim
Total Settlement Payment Amount
Cyberlux asserts it paid total of $779,616.14 toward settlement obligations between July 2023 and April 2024
Page 3 — TOTAL $779,616.14... To date, $254,000 has been paid to Strikepoint, leaving a principal balance of $396,000, and $595,616.14 has been paid to Atlantic Wave, leaving a principal balance of $591,102.45.
CLM-002
Claim
Timeliness of Payments
Schmidt claims all payments were either made by settlement deadlines including 3-day cure period, or were timely based on plaintiffs' agreed modification
Page 3 — 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' agreed-to modification of the Settlement Agreement, upon which Cyberlux relied.
CLM-003
Claim
Modified Payment Plan Agreement
Parties allegedly agreed to different payment plan post-settlement, modifying original settlement terms
Page 3 — In fact, as more fully explained in the concurrently filed Declaration of Douglas Grimes, the parties agreed to a different payment plan post-settlement.
CLM-004
Claim
Overpayment Credit
William Welter confirmed Cyberlux had overage of $167,402.56 to apply to future payments following September 2023 payment
Page 3 — Further, as confirmed by William Welter, Atlantic Wave's principal and legal counsel, following Cyberlux's overpayment of September 8, 2023, equal to $575,000, Cyberlux had an "overage" of $167,402.56 to apply to future payments.
CLM-005
Claim
Outstanding Principal Balances
Schmidt calculates remaining principal balance of $396,000 owed to Strikepoint and $591,102.45 owed to Atlantic Wave
Page 3 — Under the Settlement Agreement, the combined principal amount owed to Strikepoint was $650,000, and the combined principal amount owed to Atlantic Wave was $1,110,363.89. To date, $254,000 has been paid to Strikepoint, leaving a principal balance of $396,000, and $595,616.14 has been paid to Atlantic Wave, leaving a principal balance of $591,102.45.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
10 nodes
QUO-001
Quotation
Settlement Agreement Confidentiality
Settlement Agreement deemed confidential, subject to motion to seal in California proceeding
Page 2 — A true and correct copy of the Settlement Agreement is attached hereto as Exhibit A, which is the subject of a concurrently filed Motion to Seal due to a provision of the Settlement Agreement that deems the entirety of the Settlement Agreement to be confidential.
QUO-002
Quotation
Virginia Judgment Settlement Recital
Virginia judgment states parties reached settlement that resolves current need for continuing litigation
Page 2, 8 — The Settlement 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.
QUO-003
Quotation
Non-Dischargeability Provision
Settlement judgment includes waiver of bankruptcy discharge and appeals
Page 9 — 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.
TLL-001
Tell
Wire Transfer Execution Methodology
Payments made via wire transfer from TowneBank and PNC Bank accounts, with email confirmations between Schmidt and banking officers
Page 12, 18 — From: Kerri Thebado <Kerri.Thebado@townebank.net> Sent: Friday, September 8, 2023 4:03:28 PM To: Mark Schmidt Subject: RE: Confirmation of Atlantic Wave and Strikepoints wires. Yes they have been... From: Leticia Green <|green@cyberlux.com> Sent: Monday, December 4, 2023 11:29 To: Mark Schmidt... I will start processing this wire now.
TLL-002
Tell
Absence of Strikepoint Invoices
Leticia Green noted Strikepoint did not provide invoices, creating confusion about payment tracking
Page 18, 20 — Does this company send out invoices or do we have a consulting agreement on file?... Unfortunately, I do not receive an invoice from Strikepoint so I do not have a reference point to add to our backup... I would suggest we request invoices from all consultants to minimize confusion with payments in the future.
TEN-001
Tension
Payment Verification Request
Schmidt urgently seeking proof of February 2024 Strikepoint payment, suggesting concern about payment documentation
Page 20 — From: Mark Schmidt... Sent: Monday, April 01, 2024 4:30 AM To: Leticia Green Subject: Strikepoints February Wire. Letty, I am looking for proof of the Strikepoints payment for February. Letty, do you have any email or wire out info?
TEN-002
Tension
Discrepancy in Payment Accounting
Tension between claimed overpayment credit and enforcement action suggests dispute over payment accounting methodology
Page 1, 3 — Cyberlux had an "overage" of $167,402.56 to apply to future payments... [Yet plaintiffs filed] a Sister-State Judgment... MOTION TO VACATE SISTER-STATE JUDGMENT
QST-001
Question
Modified Payment Plan Documentation
What evidence exists of plaintiffs' agreed modification to payment plan beyond reference to Douglas Grimes declaration?
Page 3 — the parties agreed to a different payment plan post-settlement. Further, as confirmed by William Welter... Cyberlux had an "overage" of $167,402.56
QST-002
Question
Original Settlement Payment Schedule
What were the original payment deadlines and amounts in the sealed settlement agreement that Cyberlux claims to have satisfied or modified?
Page 2, 3 — 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' agreed-to modification... Exhibit A... filed Motion to Seal due to a provision of the Settlement Agreement that deems the entirety of the Settlement Agreement to be confidential.
QST-003
Question
Basis for Enforcement Action
Why did plaintiffs file California enforcement action if payments were timely under modified terms or if overage credit existed?
Page 2, 3 — the parties agreed to a different payment plan post-settlement... Cyberlux had an "overage" of $167,402.56... [Yet] Atlantic Wave Holdings, LLC and Secure Community LLC sought and obtained entry of a Sister-State Judgment
Stage 4
Interpretive — Inferences, Omissions, Patterns
6 nodes
INF-001
Inference
Payment Dispute Timing
California enforcement action filed in 2024 while payments continued through April 2024 suggests disagreement over what constitutes breach versus ongoing performance
Page 1, 3 — Case No. 3:24-cv-00482-RBM-VET... 4/1/2024 Strikepoint Consulting, LLC $19,000.00
INF-002
Inference
Douglas Grimes as Corroborating Source
Declaration references Douglas Grimes as source for modified payment plan details, suggesting coordinated defense strategy with multiple declarants
Page 3 — As more fully set forth in the concurrently filed Declaration of Douglas Grimes... as more fully explained in the concurrently filed Declaration of Douglas Grimes, the parties agreed to a different payment plan post-settlement.
INF-003
Inference
Settlement Pressure Context
Judgment language waiving bankruptcy discharge and appeals suggests plaintiffs sought enforceable collection mechanisms due to concern about defendants' ability or willingness to pay
Page 9 — 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.
OMI-001
Omission
Nature of Underlying Claims
Declaration provides no description of what the original Virginia lawsuit was about or basis for $1.57M damages award
Page 2, 8 — [No supporting text found describing underlying claims or nature of dispute in Virginia Action CL22-3882]
OMI-002
Omission
Written Modification Evidence
No written modification agreement or email exchange with plaintiffs produced as exhibit, only reference to confirmation by William Welter
Page 3 — as confirmed by William Welter, Atlantic Wave's principal and legal counsel... the parties agreed to a different payment plan post-settlement
OMI-003
Omission
Interest and Fee Calculations
No explanation of how attorney fees of $177,126.19, sanctions totaling $10,737.50, or 12% post-judgment interest factor into payment calculations
Page 9 — 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

Extracted text

24 pages · 20368 characters

Declaration of Mark D. Schmidt in Support of Cyberlux Corporation's Motion to Vacate Sister-State Judgment — Formatted Extract

Type: declaration
Court: SDCAL
Matter: Atlantic Wave / Cyberlux litigation
Filing Header

Hahn Loeser & Parks LLP Gabe P. Wright (SBN 208647) Trevor S. Locko (SBN 323313) One America Plaza 600 W. Broadway, Suite 1500 San Diego, CA 92101 Telephone: 619.810.4300 Facsimile: 619.810.4301 gwright@hahnlaw.com flocko@hahnlaw.com

THOMPSON COBURN LLP JEFFREY N. BROWN, SBN 105520 jbrown@thompsoncoburn.com 10100 Santa Monica Blvd., Suite 500 Los Angeles, California 90067 Tel: 310.282.2500 / Fax: 310.282.2501

EDWARD W. GRAY, JR. (SBN 80966) egray@thompsoncoburn.com 1909 K Street, NW Suite 600 Washington, D.C. 20006 Tel: 202.585.6967 / Fax: 202.585.6969

ALLEN CHESSON DOUGLAS GRIMES (pro hac vice application to be filed) dgrimes@allenchesson.com 505 N. Church Street Charlotte, NC 28202 Tel: 704.755.6012

Attorneys for Defendant CYBERLUX CORPORATION

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

ATLANTIC WAVE HOLDINGS, LLC, a Virginia limited liability company; and SECURE COMMUNITY, LLC, a Virginia limited Liability company,

Plaintiffs, V.

CYBERLUX CORPORATION, a Nevada Corporation;

Defendant.

Case No. 3:24-cv-00482-RBM-VET Honorable Ruth Bermudez Montenegro DECLARATION OF MARK D. SCHMIDT IN SUPPORT OF CYBERLUX CORPORATION'S MOTION TO VACATE SISTER-STATE JUDGMENT

NO ORAL ARGUMENT UNLESS ORDERED BY THE COURT

Hearing Date: June 3, 2024

3:24-cv-00482-RBM-VET

Declaration

DECLARATION OF MARK D. SCHMIDT IN SUPPORT OF MOTION TO VACATE SISTER-STATE JUDGMENT

I, Mark D. Schmidt, declare:

1.
I am the President and Chief Executive Officer of Cyberlux Corporation ("Cyberlux"), the entity against which Atlantic Wave Holdings, LLC and Secure Community LLC sought and obtained entry of a Sister-State Judgment. I have personal knowledge of the facts contained within this Declaration based upon me being involved with the transactions that are the subject of this action and this Declaration. If called as a witness, I would competently testify as to the following facts based on my personal knowledge.
2.
On or about June 15, 2023, Cyberlux, myself, Atlantic Wave Holdings, LLC ("Atlantic Wave"), Secure Community, LLC ("Secure"), and Strikepoint Consulting, LLC ("Strikepoint") entered into a settlement agreement (“Settlement Agreement") arising from the lawsuit entitled Atlantic Wave Holdings, LLC; and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt, Circuit Court of the City of Richmond, Virginia, Case No. CL22-3882 (the "Virginia Action"). A true and correct copy of the Settlement Agreement is attached hereto as Exhibit A, which is the subject of a concurrently filed Motion to Seal due to a provision of the Settlement Agreement that deems the entirety of the Settlement Agreement to be confidential.
3.
Pursuant to the terms of the Settlement Agreement, an Amended Final Order and Judgement [sic] ("Settlement Judgement") was filed and entered in the Virginia Action on June 28, 2023, a true and correct copy of which is attached hereto as Exhibit B. The Settlement 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.
1
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 /// /// /// 26 27 28 |///
1
2
4.
Following the Settlement Agreement reached in the Virginia Action, Cyberlux made payments to Atlantic Wave and Strikepoint as follows:

Date

Payee

Amount

7/3/2023

Atlantic Wave Holdings, LLC :unselected:

$10,737.50

7/3/2023

Atlantic Wave Holdings, LLC :unselected:

$5,364.75

7/3/2023

Atlantic Wave Holdings, LLC

$4,513.89

9/8/2023

Atlantic Wave Holdings, LLC :unselected:

$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' agreed-to modification of the Settlement Agreement, upon which Cyberlux relied.

5.
In fact, as more fully explained in the concurrently filed Declaration of Douglas Grimes, the parties agreed to a different payment plan post-settlement. Further, as confirmed by William Welter, Atlantic Wave's principal and legal counsel, following Cyberlux's overpayment of September 8, 2023, equal to $575,000, Cyberlux had an "overage" of $167,402.56 to apply to future payments.
6.
Under the Settlement Agreement, the combined principal amount owed to Strikepoint was $650,000, and the combined principal amount owed to Atlantic Wave was $1,110,363.89. To date, $254,000 has been paid to Strikepoint, leaving a principal balance of $396,000, and $595,616.14 has been paid to Atlantic Wave, leaving a principal balance of $591,102.45.

DECLARATION OF MARK D. SCHMIDT IN SUPPORT OF MOTION TO VACATE SISTER-STATE JUDGMENT

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.

Executed this 10th day of April, 2024, at Houstonsighewas. Mark D. Schmidt CB9EE73498DE446 ...

Mark D. Schmidt

EXHIBIT A

FILED UNDER SEAL EXHIBIT A: SETTLEMENT AGREEMENT

EXHIBIT B

VIRGINIA:

IN THE CIRCUIT COURT OF THE CITY OF RICHMOND

ATLANTIC WAVE HOLDINGS, LLC ) AND SECURE COMMUNITY, LLC ) )

)

Plaintiffs,

) )

v.

)

Case No: CL22-3882 - 4

CYBERLUX CORPORATION and )

)

MARK D. SCHMIDT, individually ) )

Defendants. )

)

AMENDED FINAL ORDER AND JUDGEMENT

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 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

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

ENDED. SA , 2023.

ENTERED this 20 day of June

Te Sully

Hon Jacqueline S. McClenney, Presiding Judge Circuit Court for the City of Richmond

A Copy Teste: EDWARD F.JEWETT, CLERK BY: flere Blanchard .

WE ASK FOR THIS:

W. Benjamin Pace (VSB No 48033) 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:

Mark 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

ChamPloo Charles Watts, Jr, in his capacit, as Special Counsel for Cyberlux Corporation and Mark D. Schmidt

EXHIBIT C

DocuSign

From: Mark Schmidt <mschmidt@cyberlux.com>

Date: April 1, 2024 at 7:18:01 AM EDT

To: Charles Watts <legal_cybl@cyberlux.com>

Subject: Fwd: Confirmation of Atlantic Wave and Strikepoints wires

September 2023 Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Kerri Thebado <Kerri.Thebado@townebank.net>

Sent: Friday, September 8, 2023 4:03:28 PM To: Mark Schmidt <mschmidt@cyberlux.com> Cc: Shellie Mellady <Shellie.Roberts@townebank.net>

Subject: RE: Confirmation of Atlantic Wave and Strikepoints wires

Yes they have been

T

TOWNE BANK

Kerri Thebado Banking Officer | Member Service Specialist T: 919-534-7407 Kerri.Thebado@townebank.net | TowneBank.com 5000 Valleystone Dr, Suite 110, Cary, NC 27519 Serving Others. Enriching Lives.

From: Mark Schmidt <mschmidt@cyberlux.com>

Sent: Friday, September 8, 2023 3:48 PM

To: Shellie Mellady <Shellie.Roberts@townebank.net>; Kerri Thebado <Kerri.Thebado@townebank.net>

Subject: Confirmation of Atlantic Wave and Strikepoints wires

CAUTION: External Email

Shellie/Kerri, will you please confirm that the Atlantic Wave and Strikepoints wires have been executed.

Atlantic Wave Holdings, LLC

Bank of America Routing Number:

Account number:

Amount: $575,000.00

Strikepoints Consulting, LLC

Bank of America Routing Number:

Account number:

Amount: $50,000.00

TYVM!

Mark Schmidt | President and CEO mschmidt@cyberlux.com 919-434-6608

CYBERLUX® ® Harnessing the Future Visit our Website

DocuSign

From: Mark Schmidt <mschmidt@cyberlux.com>

Date: April 1, 2024 at 7:17:22 AM EDT

To: Charles Watts <legal_cybl@cyberlux.com> Subject: Fwd: Wire out

October 2023 Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Kerri Thebado <Kerri.Thebado@townebank.net>

Sent: Wednesday, October 4, 2023 2:47:30 PM To: Mark Schmidt <mschmidt@cyberlux.com> Subject: RE: Wire out

Will do!

T

TOWNE BANK

Kerri Thebado Banking Officer | Member Service Specialist T: 919-534-7407 Kerri.Thebado@townebank.net | TowneBank.com 5000 Valleystone Dr, Suite 110, Cary, NC 27519 Serving Others. Enriching Lives. Towne Family Careers

From: Mark Schmidt <mschmidt@cyberlux.com> Sent: Wednesday, October 4, 2023 2:46 PM To: Kerri Thebado <Kerri.Thebado@townebank.net>

Subject: Wire out

Kerri, when possible, please wire from our 6642 account:

Strikepoints Consulting, LLC Bank of America Routing Number: Account number:

Amount: $20,000.00

TYVM!

Mark Schmidt | President and CEO

CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

DocuSign case 3:24-12-00482-REMOVEDcument 9-4 Filed 04/10/24 PageID.407 Page 16 of 24

From: Mark Schmidt <mschmidt@cyberlux.com>

Date: April 1, 2024 at 7:17:04 AM EDT

To: Charles Watts <legal_cybl@cyberlux.com> Subject: Fwd: Wire out

November 2023

Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Kerri Thebado <Kerri.Thebado@townebank.net>

Sent: Thursday, November 2, 2023 14:32 To: Mark Schmidt <mschmidt@cyberlux.com> Subject: RE: Wire out

Sending it now ~

T

TOWNE BANK

Kerri Thebado Banking Officer | Member Service Specialist T: 919-534-7407 Kerri.Thebado@townebank.net | TowneBank.com 5000 Valleystone Dr, Suite 110, Cary, NC 27519 Serving Others. Enriching Lives.

From: Mark Schmidt <mschmidt@cyberlux.com> Sent: Thursday, November 2, 2023 2:24 PM To: Kerri Thebado <Kerri.Thebado@townebank.net> Subject: Wire out

Kerri, when possible, please wire from our 6642 account:

Strikepoints Consulting, LLC Bank of America Routing Number:

Account number:

Amount: $19,000.00

TYVM!

Mark Schmidt | President and CEO CYBERLUX CORPORATION

DocuSign Case 3:24-CV-60482-REMOVEDcument 9-4 Filed 04/10/24 PageID.408 Page 17 of 24

mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Mark Schmidt <mschmidt@cyberlux.com>

Date: April 1, 2024 at 7:15:34 AM EDT

To: Charles Watts <legal_cybl@cyberlux.com> Subject: Fwd: Wire out of 7189

December 2023

Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Leticia Green <|green@cyberlux.com>

Sent: Monday, December 4, 2023 11:29 To: Mark Schmidt <mschmidt@cyberlux.com> Subject: RE: Wire out of 7189

Good Morning Mark!

I will start processing this wire now.

Does this company send out invoices or do we have a consulting agreement on file? Would you send that to me when its convenient please.

Thank you,

Letty Green lgreen@cyberlux.com

CYBERLU ®

Harnessing the Future Visit our Website From: Mark Schmidt <mschmidt@cyberlux.com> Sent: Monday, December 04, 2023 8:10 AM To: Leticia Green <|green@cyberlux.com>

Subject: Wire out of 7189

Good morning Letty, will you please send the following wire out from 7189? This is also a monthly payment going forward.

Strikepoints Consulting, LLC Bank of America Routing Number: Account number: Amount: $19,000.00

DocuSign case 3:24-cv-00482-RBM-VETDocument 9-4 Filed 04/10/24 PageID.410 Page 19 of 24

TYVM - Mark

Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Mark Schmidt <mschmidt@cyberlux.com>

Date: April 1, 2024 at 12:29:08 PM EDT

To: Charles Watts <legal_cybl@cyberlux.com> Subject: Fwd: Strikepoints February Wire

January 2024 and February 2024.

Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Leticia Green <|green@cyberlux.com>

Sent: Monday, April 1, 2024 11:37 To: Mark Schmidt <mschmidt@cyberlux.com> Subject: RE: Strikepoints February Wire

Hi Mark,

I created two wires for Strikepoint (attached).

The wire dated 1/2/2024 was for January and the wire dated 2/1/24 was for February. Unfortunately, I do not receive an invoice from Strikepoint so I do not have a reference point to add to our backup. If what I am showing is correct, we did not pay them in February unless you paid them directly from Townebank.

I would suggest we request invoices from all consultants to minimize confusion with payments in the future.

Thank you,

Letty Green lgreen@cyberlux.com Visit our Website From: Mark Schmidt <mschmidt@cyberlux.com>

Sent: Monday, April 01, 2024 4:30 AM To: Leticia Green <|green@cyberlux.com> Subject: Strikepoints February Wire

Letty, I am looking for proof of the Strikepoints payment for February. Letty, do you have any email or wire out info?

Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

Funds Transfer - Layout

https://www.treasury.pncbank.com/PWWWireWeb/CreatePaymentsCreationStatusPrint.ht DocuSign Envelope ID: B8D1316B-4Case 3:24-CV-00482-RBM-VET Document 9-4 Filed 04/10/24 PageID.412 Page 21 of 24

Initiate Payments - Initiation Status

Close

Print

Account

Trace ID

Template ID

Template Name

Type

Value/Send Date

Beneficiary

Amount

Status

Domestic

01/02/2024

:selected: Strikepoints Consulting, LLC x

19,000.00 USD

Pending Approval

Created by: Letty Green - 01/02/2024 06:20 PM EST

PNC

DocuSign Envelope ID: B8D1316B-4Case 3:24-CV-00482-RBM-VET Document 9-4 Filed 04/10/24 PageID.413 Page 22 of 24 Quick Search by Trace ID Report

Initiation Date: Monday, January 29, 2024

01/29/2024 02:42:57 PM

Account Summary

CYBERLUX CORPORATION OPERATING

Amount

Count

Total Debits :

19,000.00 USD

Account

Trace ID

Template ID

Template Name

Type

Value / Send Date

Beneficiary

Amount

Status

Fed Ref No.

CBLX 011

STRIKEPOINTS CONSULT

Domestic

2/1/2024

Strikepoints Consulting, LLC

19,000.00 USD

Pending Approval

Beneficiary Bank ID:

Beneficiary Information

Account:

Name: BANK OF AMERICA, N.A., NY

Address: 900 N. TAYLOR ST. APT 1826

Address: NEW YORK, NY

ARLINGTON, VA 22203-1877

OBI: JAN24

Grand Totals

Count

Total Debits :

19,000.00 USD

Audit History Initiated by: Letty Green 01/29/2024 01:52 PM ET

DocuSign case 3:24-2-00482-REMOVEDcument 9-4 Filed 04/10/24 PageID.414 Page 23 of 24

Begin forwarded message:

From: Mark Schmidt <mschmidt@cyberlux.com>

Date: April 1, 2024 at 7:10:30 AM EDT

To: Charles Watts <legal_cybl@cyberlux.com>

Subject: Fwd: Wite out

March 2024 Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

From: Kerri Thebado <Kerri.Thebado@townebank.net> Sent: Friday, March 1, 2024 12:57 To: Mark Schmidt <mschmidt@cyberlux.com> Subject: RE: Wite out

Just Completed! 6

25
th

ANNIVERSARY

Kerri Thebado Banking Officer | Member Service Specialist Kerri. Thebado@townebank.net Tel: 919-534-7407 5000 Valleystone Dr, S, Ca , N ,275 uite 110 ry C 19 TowneBank.com

Serving Others. Enriching Lives.

TOWNE BANK

From: Mark Schmidt <mschmidt@cyberlux.com>

DocuSign

To: Kerri Thebado <Kerri.Thebado@townebank.net> Subject: Wite out

CAUTION: External Email

Kerri, when possible today/tomorrow, please wire from our 6642 account:

Strikepoints Consulting, LLC Bank of America Routing Number:

Account number:

Amount: $19,000.00

TYVM!

Mark Schmidt | President and CEO CYBERLUX CORPORATION mschmidt@cyberlux.com 919-434-6608 www.Cyberlux.Com

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