Order Granting Temporary Restraining Order and Appointing Receiver

PHILLIP RICK TUCKER, a/k/a RICK

§ IN THE DISTRICT COURT

TUCKER, and NEILL WHITELEY,

§

Individually,

§

Plaintiffs,

§

§

V.

§ 129TH JUDICIAL COURT §

CYBERLUX CORPORATION and

§

MARK D. SCHMIDT, individually,

§ IN AND FOR

Defendants.

§ HARRIS COUNTY, TEXAS

ORDER GRANTING TEMPORARY RESTRAINING ORDER AND APPOINTING RECEIVER

On the date of entry below, this Court considered Plaintiff's Original Petition and Emergency TRO/Injunction to Extend Receivership, reviewed the documents on file, relevant statutory and case law, admissible evidence, all arguments of the parties and counsel, and finds the Plaintiff's may aid from this action.

Specifically, the Court recognizes there is a current receivership in cause no. 2024-48085, styled Atlantic Wave Holdings, LLC, et. al. v. Cyberlux Corporation, et. al. The Court was advised during the Temporary Restraining Order hearing that due to payment of the single Plaintiff, Atlantic Wave Holdings, LLC, the existing receivership will terminate. To prevent the pilfering of assets, allow the other Plaintiffs to bring their claims to this court, and specifically to ensure the Plaintiff's in this case are protected from Cyberlux absconding with corporate assets, the Court finds it necessary to maintain the existing receivership in series with a pre-judgment receivership in the above-styled cause.

Cause No. 202448085

The Court finds the relief granted herein is not adverse to the public or Cyberlux's interest and the harm the Plaintiff's and other Plaintiffs may suffer without equitable relief greatly outweighs any hardship that may result to Cyberlux. Without this Temporary Restraining Order, the Plaintiff has no adequate remedy at law for the relief requested. There is no prejudice to Cyberlux by having a Receiver in place.

The Clerk of this Court shall issue this Temporary Restraining Order immediately for service upon Defendant.

For this Temporary Restraining Order to issue, Plaintiffs shall be required to post a bond in the amount of $100.

For this Temporary Restraining Order to issue, Plaintiffs shall be required to post a bond in the amount of $1000.

This Temporary Restraining Order shall continue in full force and effect until 1:30 p.m. on the 19th day of June 2025, at which time the Court will consider Plaintiff's Application for a Temporary Injunction, enjoining Defendant and their respective agents, employees, representatives, and attorneys from the same conduct until final hearing in this cause.

The Court DEFINES that:

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Cause No. 202448085

a. CYBERLUX CORPORATION (CORPORATION) 4625 Creekstone Dr Durham, NC 27703-8478 800 Park Offices Dr Suite 3209 Research Triangle Park, NC 27709

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b. MARK D. SCHMIDT (INDIVIDUAL)

BERLETH & ASSOCIATES Robert W. Berleth

Texas Bar # 24091860

SDOT #: 3062288

E-mail: rberleth@berlethlaw.com Tristian Harris Texas Bar # 24134449 E-mail: tharris@berlethlaw.com 9950 Cypresswood Dr. Suite 200 Tele: 713-588-6900

Tucker, et. al. v. Cyberlux Corporation et al.

TRO and Order Appointing Receiver

THEREFORE, the Court ORDERS the relief as set out below:

Receiver in the performance of Receiver's duties. Third parties are notified that Receiver, not Defendant, is the party entitled to possess, sell, liquidate, and otherwise deal with Defendant's non-exempt property and once any third party receives notice of this order, the third party may be subject to liability if the third party releases property, unless directed by Receiver or the Court.

a. All third parties who hold a Defendant's property or records are orderedto immediately notify Receiver and to deliver the property within ten working days of Receiver's demand.

All third parties knowing of this order are ordered to immediately notify Receiver if they discover the existence of a Defendant's property, or of facts that might lead to the discovery of property in which any Defendant has any interest.

c. Anyone resisting Receiver's order or request, based on legal or other advice, is ordered to give the full name, address, fax number, e-mail address, cell phone number, and direct telephone number for each person giving that advice and to instruct those persons to immediately contact Receiver. Doing so waives no attorney-client communication privilege.

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a. Deliver to Receiver, at the address of the Receiver, the items described in Exhibit A, attached hereto as part of this Order, and all documents and records requested by Receiver, within ten days, then occasionally, in the time periods, manners, and formats requested;

b. Turnover to Receiver all non-exempt funds to the extent required to satisfy the Judgment. No Defendant may spend non-exempt

Cause No. 202448085

funds, or sell, transfer, or encumber non-exempt assets without Receiver's prior written consent;

c. Disclose to Receiver all assets of each Defendant, and directly nor indirectly interfere with or impede Receiver to perform his duties. Defendant must disclose all exempt and non-exempt assets so the exempt status of every asset can be determined. Defendant's disclosure must provide sufficient specificity to permit a constable to identify and levy on the assets;

d. Supplement all disclosures, in writing, within five days of knowledge of information required to be disclosed, without being prompted;

e. Organize and collate the disclosed information and documents in the formats and manners required by Receiver. The disclosures must be indexed and refer to the request to which it is responding. Responses like, "See response number so and so." are prohibited;

f. Deliver to Receiver all passwords, user identification, login and other credentials used to access websites, owned, controlled, or managed by each Defendant and on-line accounts that allow the control of assets (e.g. financial accounts, webhosting accounts, and other accounts used to control assets).

g. Defendant may not dispute a check that Receiver seizes and deposits, without first obtaining the Court's permission.

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h. If Defendant believes that the Receiver's demands are inappropriate, the Defendant must first comply, then seek protection from the Court. Defendants seeking protection must set the matter for the earliest possible hearing date, after giving full notice to the Receiver and attempting to resolve the issues.

the Receiver.8 If the Defendant is the sole owner of that entity or business, all management authority is vested in the Receiver as if Receiver were the Receiver over that entity. If the Respondent is a business entity, all authority and power of the Defendant in the management of the entity is vested in the Receiver and no decision may be made or carried out without the express approval of the Receiver.9 This order supersedes the authority of any officers, directors or managers of the business entity Defendant.

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receivership terminates. The assets are in the control of the court for the first receivership. Thus, they are not available to the court ordering a later receivership. The Receiver may obtain permission from this and other courts to satisfy several judgments against the same Defendant.10 The Receiver may notice other subsequent receiverships or their controlling court of this receivership and may take legal actions necessary to quash subsequent receiverships

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a. All patents, trademarks, service marks, copyrights, websites, and domain names;

b. All documents or records, including financial records, related to such property that is in actual or constructive possession of the Defendants;

c. All financial accounts (bank accounts), certificates of deposit, money-market accounts, and accounts held by any third party;

d. All federal and state tax returns filed or prepared by or on behalf of the Defendants for the past five (5) years;

e.All non-exempt vehicles, to include boats, motor vehicles, cars, trucks, utility vehicles, recreation vehicles, aircraft, trailers, or other wheeled vehicles;

f. All real property owned or rented by any Defendant or Defendant's agent or assigns in part or whole;

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g. All securities;

h. All gifts, inheritances, or divisions of property;

i. All safety deposit boxes, safes, lock boxes, or vaults;

j. All cash;

k. All negotiable instruments, including promissory, notes, drafts, and checks;

l. All causes of action;

m. All contract rights, whether present or future;

n. All accounts receivable;

o. Any and all leases or leaseholds;

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p. All collections, including but not limited to artwork, stamps, coins, guns, crystal, sports memorabilia, records, and trains;

q. Accounts receivable for and all other entities controlled by Defendants;

r. All Defendants' ownership interests;

s. All personal bank accounts upon which Defendants are signatories;

All business bank accounts upon which Defendants are signatories;

u. All bank accounts owned, possessed, controlled by, or in the name of any Defendant individually;

TRO and Order Appointing Receiver

v. All bank accounts owned, possessed, controlled by, or in the name of and Defendant by corporate affiliation;

w. All diamonds, gems, and other precious stones, gold, silver, platinum, and all other precious metals, watches, and jewelry;

defend against any lawsuit, pay any tax or fee, file tax returns, maintain any insurance coverage, or have any obligation except as specifically ordered.

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Obtain credit reports. The Receiver may obtain credit reports, financial institution statements, and other reports to aid in locating assets. Receiver may order Consumer Reporting Agencies, as defined by the Fair Credit

Reporting Act ("FCRA") 16 USC §1681b(f) to provide consumer reports on Defendants and witnesses as allowed under FCRA 16 USC §1681b(a)(1).

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with Receiver's custody of the premises; moving or storing Defendant's property; collect accounts receivable; or sell Defendant's non-exempt property;

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objection to the Receiver's report. Should no objections be timely received, reports by the Receiver will be considered facts and conclusions of law. Unopposed facts will be conclusively admitted. The Court, sua sponte, may confirm, modify, correct, reject, reverse or recommit the report, after it is filed, as the court may deem proper and necessary. Objections must be filed within 20 days, state each disputed ground, the reasons for each dispute, and attach the documents supporting each objection.

a. At least ten days before any abandonment, Receiver must file a notice of the intended sale or abandonment that describes the

property to be abandoned, its sale price, and how it will be sold or abandoned;

b. By first class mail to Defendant and every person who has filed a request for notice;

as described in the notice, without further order.

b. If an objection is timely filed, the proposed abandonment or sale must not be completed until the Court has decided the objection.

Tucker, et. al. v. Cyberlux Corporation et al.

TRO and Order Appointing Receiver

recruitment of experienced receivers. Given the chances of no recovery, contingent fees are the most economical fee schedule. The costs of proving an hourly fee could easily exceed the original judgment. A contingency fee is the only way that plaintiff can afford a receiver. Defendant has not tried to pay the judgment. The costs of proving an hourly fee are prohibitive. Therefore, the Receiver is entitled to a fee equal to 25% of all sales of assets that come into his actual, constructive, or legal possession, and all recoveries and credits against the judgment. Upon hearing, and once the Rohrmoos Ventures12 elements have been proven, the Court finds 25% is a fair, reasonable, customary, and necessary fee for Receiver. A Receiver's fee exceeding 25% of all funds coming into Receiver's possession may be awarded after notice and opportunity for hearing to all parties. Specifically, the Court may award the Receiver 33% of collected funds should the Receiver collect the full amount of the judgment. If the Defendant files bankruptcy, Receiver's fee shall be equal to 25 percent of the debt owed when the bankruptcy is filed, and may be filed as a secured claim should a valid abstract of judgment be on file at the time of bankruptcy filing. Receiver is directed to pay plaintiff's attorney, as plaintiff's trustee, the remainder of all funds coming into Receiver's possession, after deducting Receiver's costs and payment of liens or set offs as Receiver deems reasonable within a reasonable time.

the Texas Supreme Court, the Defendant is ordered to post an additional $25,000. These bonds will be held in the registry of the court pending the appellate ruling and awarded to the prevailing party as attorney's fees as proven at the time."

Cause No. 202448085

BE IT SO ORDERED. Any and all further relief not expressly stated herein is denied.

Signed and Dated:

Hon. Beau Miller ANCILLARY JUDGE PRESIDING

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Unofficial Copy Office of Marilyn Burgess District Clerk

TRO and Order Appointing Receiver