Evidence Record

IP HII EDVA 00483 Doc. 0169 Exhibit 4

On December 16, 2025, Plaintiffs Atlantic Wave Holdings, LLC and Secure Community, LLC and Defendants Cyberlux Corporation and Mark D. Schmidt, individually, by their Receiver, Robert W. Berleth, Esq.,' appeared by and through counsel...

Type
exhibit
Court
EDVA
Case
HII v. Cyberlux interpleader
Docket
3:25-cv-00483
Pages
6
Lines
127
SHA-256
350b7cf406c4

DISTIL analysis

DISTIL Run
Profile
Standard
Version
1
Doc Type
Consent Final Order
Total Nodes
30
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
Consent Final Order Circuit Court of the City of Richmond, Virginia Civil litigation - breach of settlement agreement, receivership enforcement 2024-2025
final_judgmentreceivershipmulti_jurisdictionalappeal_abatement
Analytical Frame
Court order adjudicating receiver authority and consent judgment
Analytical Summary
This Consent Final Order resolves litigation between Atlantic Wave Holdings/Secure Community and Cyberlux Corporation/Mark D. Schmidt in Richmond Circuit Court (CL24-3910). The court grants a $6 million judgment plus attorney fees after determining that a Texas-appointed receiver had proper authority to enter the consent agreement on behalf of defendants. The court's prior stay pending Texas appellate proceedings was lifted after the Texas Court of Appeals abated the mandamus appeal and the Harris County District Court denied defendants' emergency motion. Defendants' counsel failed to appear and their motion to quash the hearing was denied. The order validates the settlement agreement from prior case CL22-3882 and dismisses all claims with prejudice.
Key Points
  • Court awards plaintiffs $6,000,000 in compensatory damages plus $25,250.50 in attorney fees and costs
  • Texas-appointed receiver had authority to enter consent agreement on behalf of defendants
  • Texas Court of Appeals abated mandamus appeal on November 4, 2025
  • Harris County District Court denied defendants' Emergency Motion to Stay on November 11, 2025
  • Defendants' counsel failed to appear at December 16, 2025 hearing; Motion to Quash denied
  • All claims and counter-claims dismissed with prejudice
Stage 2
Core — Entities, Events, Claims
20 nodes
ENT-001
Entity
Atlantic Wave Holdings, LLC
Plaintiff corporation in civil litigation seeking enforcement of settlement agreement and damages for breach
Page 2 — ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC, Plaintiffs
ENT-002
Entity
Secure Community, LLC
Co-plaintiff corporation alongside Atlantic Wave Holdings in litigation against Cyberlux and Schmidt
Page 2 — ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC, Plaintiffs
ENT-003
Entity
Cyberlux Corporation
Defendant corporation subject to receivership order, judgment debtor for $6 million damages plus fees
Page 2 — CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, Defendants
ENT-004
Entity
Mark D. Schmidt
Individual defendant, jointly and severally liable with Cyberlux Corporation, subject to receivership proceedings in Texas
Page 2 — CYBERLUX CORPORATION and MARK D. SCHMIDT, individually, Defendants
ENT-005
Entity
Robert W. Berleth, Esq.
Court-appointed receiver controlling business functions of Cyberlux Corporation and Mark D. Schmidt, authorized to enter consent agreement
Page 2 — Defendants Cyberlux Corporation and Mark D. Schmidt, individually, by their Receiver, Robert W. Berleth, Esq.
ENT-006
Entity
Honorable Jacqueline S. McClenney
Presiding Judge of Circuit Court for the City of Richmond, Virginia who entered the consent final order
Page 5 — Honorable Jacqueline S. McClenney, Presiding Judge Circuit Court for the City of Richmond, Virginia
ENT-007
Entity
Honorable Michael Gomez
Judge of 129th Judicial Court in Harris County Texas who appointed the receiver on May 22, 2025
Page 3 — The Receiver in this case was appointed by the Honorable Michael Gomez, on May 22, 2025, in the 129th Judicial Court in Harris County Texas, Cause Number 2024448085
EVT-001
Event
Receiver Appointment
Honorable Michael Gomez appointed Robert W. Berleth as receiver on May 22, 2025 in Harris County Texas to control business functions of Cyberlux Corporation and Mark D. Schmidt
Page 3 — The Receiver in this case was appointed by the Honorable Michael Gomez, on May 22, 2025, in the 129th Judicial Court in Harris County Texas, Cause Number 2024448085, to control the business function, in all respects, of the Defendant Cyberlux Corporation and the individual, Mark D. Schmidt.
EVT-002
Event
First Joint Motion Filed
Plaintiffs and receiver filed Joint Motion for Entry of Consent Order on September 19, 2025; defendants objected and court allowed briefing
Page 2 — It appearing that this matter has been previously visited by the court when Plaintiffs and the Receiver, on September 19, 2025, filed a Joint Motion for Entry of a Consent Order ("First Motion") entered between Plaintiffs and the Receiver, on behalf of the Plaintiffs. The Defendants objected and the Court allowed the parties to brief the issues
EVT-003
Event
October 30, 2025 Opinion and Order
Court entered written Opinion and Order on October 30, 2025 ruling on First Motion, validating settlement agreement from CL22-3882 and confirming receivership recording, but staying proceedings pending Texas resolution
Page 2, 3 — after which the Court entered a written "Opinion and Order" dated October 30, 2025, ruling on the First Motion. As part of the October 30, 2025, order, the Court, among other things, ruled that the Settlement Agreement entered in CL22-3882 between Plaintiffs and Defendants was valid
EVT-004
Event
Texas Court of Appeals Abatement
Texas Court of Appeals abated defendants' appeal of denial of Petition for Writ of Mandamus on November 4, 2025, treating it as closed and removing from docket
Page 3 — And it further appearing that by Abatement Order entered in the Texas Court of Appeals on November 4, 2025, the Texas Court of Appeals abated, treated as a closed case, and removed from the docket, the Defendants' appeal of the denial of the Petition for Writ of Mandamus as reflected by Exhibit B attached to Second Motion.
EVT-005
Event
Harris County Motion Denial
Harris County District Court denied defendants' Emergency Motion to Stay on November 11, 2025
Page 3 — And it further appearing that on November 11, 2025, the Harris County District Court denied Defendants' Emergency Motion to Stay as reflected by Exhibit D attached to the Second Motion.
EVT-006
Event
December 16, 2025 Hearing
Court hearing held on December 16, 2025 on Plaintiffs' Motion to Dissolve Stay and Enter Consent Order; defendants' counsel failed to appear despite filing Motion to Quash
Page 2 — On December 16, 2025, Plaintiffs Atlantic Wave Holdings, LLC and Secure Community, LLC and Defendants Cyberlux Corporation and Mark D. Schmidt, individually, by their Receiver, Robert W. Berleth, Esq.,' appeared by and through counsel before this Court on the Plaintiffs' Motion to Dissolve Stay and Enter Consent Order.
EVT-007
Event
Entry of Consent Final Order
Court entered Consent Final Order on December 18, 2025 awarding $6 million plus fees and costs, dismissing all claims with prejudice
Page 5 — ENTERED This 18 day of December, 2025
CLM-001
Claim
Settlement Agreement Validity
Court ruled that the Settlement Agreement entered in CL22-3882 between Plaintiffs and Defendants was valid
Page 2 — As part of the October 30, 2025, order, the Court, among other things, ruled that the Settlement Agreement entered in CL22-3882 between Plaintiffs and Defendants was valid
CLM-002
Claim
Receivership Recording Proper
Court ruled that the Order of Receivership was properly recorded in the City of Richmond, without objection
Page 3 — and that the Order of Receivership was properly recorded in the City of Richmond, without objection.
CLM-003
Claim
Receiver Authority to Control Litigation
Court determined that receiver has authority to control and/or manage litigation incident to his role
Page 3, 4 — And it lastly appearing to the court the Receiver has authority to control and or manage litigation incident to his role
CLM-004
Claim
$6 Million Compensatory Damages
Court awards plaintiffs the negotiated sum of $6,000,000 in compensatory damages, jointly and severally, against defendants to resolve claims in complaint
Page 4 — The Court awards Plaintiffs the negotiated sum of SIX MILLION DOLLARS ($6,000,000.00) in compensatory damages, jointly and severally, against Defendants Cyberlux Corporation and Mark D. Schmidt, individually, to resolve the claims alleged in Plaintiffs' complaint.
CLM-005
Claim
Attorney Fees and Costs Award
Court awards plaintiffs all costs including reasonable attorney's fees in the amount of $25,250.50 plus post judgment interest at 6% per annum
Page 4 — That Plaintiffs be awarded all their costs, including reasonable attorney's fees in the amount of $25,250.50, per the parties agreement and post judgment interest at the rate of 6% per annum from the date of entry of this order.
CLM-006
Claim
Dismissal with Prejudice
Plaintiffs' Complaint and Defendants' Counter-Complaint are dismissed with prejudice to the parties
Page 4 — Plaintiffs' Complaint and Defendants' Counter-Complaint are hereby dismissed with prejudice to the parties.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
5 nodes
QUO-001
Quotation
Receiver Scope of Control
Texas court order specified receiver appointed to control the business function, in all respects, of defendant entities
Page 3 — to control the business function, in all respects, of the Defendant Cyberlux Corporation and the individual, Mark D. Schmidt.
QUO-002
Quotation
First Motion Stay Rationale
Court stayed proceedings based on defendants' representation of pending Texas appellate proceedings
Page 3 — based on the representation that the Defendants had noted an appeal in the Texas Court of Appeals appealing the denial of the Defendants' Petition for a Writ of Mandamus, and the Defendants' representation that the Defendants had filed an Emergency Motion in the Harris County District Court seeking the termination of the Receivership, the Court denied the entry of the consent order in the First Motion and stayed further rulings pending the resolution of proceedings in Texas.
TEN-001
Tension
Defendants' Non-Appearance Despite Objection
Defendants filed Motion to Quash the December 16 hearing asserting improper scheduling and counsel unavailability, but counsel did not appear at hearing
Page 4 — The Court notes that the Defendants, by counsel, filed a Motion to Quash the December 16, 2025, hearing based on its assertion that the hearing was improperly scheduled, and that defense counsel was unable to appear. The Defendants' counsel of record did not appear.
TEN-002
Tension
Receiver Status of Schmidt Individually
While receivership names Mark D. Schmidt individually as judgment debtor, receiver filed order in Texas to remove Schmidt individually from receivership terms, though not yet entered
Page 2 — While the Receivership names Mark D. Schmidt, individually, as a Judgment Debtor, the Receiver has filed an Order in Texas, which has yet to be entered, removing Mark D. Schmidt, individually, from the terms of the Receivership Order in Texas.
QST-001
Question
Defendants' Standing to Contest
Court explicitly makes no ruling on whether defendants had standing to claim defective notice or whether they have any appellate rights
Page 5 — The Court makes no ruling on whether the Defendants had standing to claim defective notice and makes no ruling on whether the Defendants have any appellate rights.
Stage 4
Interpretive — Inferences, Omissions, Patterns
5 nodes
INF-001
Inference
Receiver Superseded Defendants' Authority
The receiver's agreement with plaintiffs to enter consent judgment was binding despite defendants' objections, indicating receivership effectively removed defendants' control over litigation decisions
Page 3, 4 — And it lastly appearing to the court the Receiver has authority to control and or manage litigation incident to his role and that the Receiver and Plaintiffs have agreed to the entry of a judgment by consent against the Defendants to resolve the Complaint and finalize the litigation
INF-002
Inference
Texas Proceedings Collapse Enabled Judgment
The abatement of mandamus appeal and denial of emergency stay motion in Texas eliminated the basis for Virginia court's stay, allowing consent judgment to proceed despite defendants' continued opposition
Page 3 — And it further appearing that, subsequent to the entry of the October 30, 2025, ruling on the First Motion, there has been a change in circumstances causing Plaintiffs to file this second motion to lift the current stay and enter an order based on the original agreement set forth in the First Motion
INF-003
Inference
Motion to Quash as Tactical Maneuver
Defendants' Motion to Quash asserting improper notice while simultaneously engaging through electronic filings suggests effort to preserve objection record while avoiding substantive hearing participation
Page 4 — The Plaintiffs filed a Response in Opposition to the Motion to Quash electronically with supporting exhibits. The Defendants then filed a reply, electronically, all of which were reviewed by the court and considered.
OMI-001
Omission
Underlying Claims Unspecified
Order does not describe the substantive claims alleged in plaintiffs' complaint that form the basis for $6 million award, beyond reference to settlement agreement breach
Page 4 — to resolve the claims alleged in Plaintiffs' complaint
OMI-002
Omission
Negotiation Details Absent
Order characterizes $6 million as a 'negotiated sum' but provides no detail about negotiation process or how amount was determined
Page 4 — The Court awards Plaintiffs the negotiated sum of SIX MILLION DOLLARS ($6,000,000.00)

Extracted text

6 pages · 6810 characters

IP HII EDVA 00483 Doc. 0169 Exhibit 4 — Formatted Extract

Type: exhibit
Court: EDVA
Matter: HII v. Cyberlux interpleader
Docket: 3:25-cv-00483
Exhibit 4

tabbles

E

VIRGINIA:

IN THE CIRCUIT COURT OF THE CITY OF RICHMOND

ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC, Plaintiffs, V. CYBERLUX CORPORATION and MARK D. SCHMIDT, individually,

Case No .: CL24-3910

Defendants.

CONSENT FINAL ORDER

On December 16, 2025, Plaintiffs Atlantic Wave Holdings, LLC and Secure Community, LLC and Defendants Cyberlux Corporation and Mark D. Schmidt, individually, by their Receiver, Robert W. Berleth, Esq.,' appeared by and through counsel before this Court on the Plaintiffs' Motion to Dissolve Stay and Enter Consent Order. Having considered the arguments and evidence presented, the Court makes the following ruling:

It appearing that this matter has been previously visited by the court when Plaintiffs and the Receiver, on September 19, 2025, filed a Joint Motion for Entry of a Consent Order ("First Motion") entered between Plaintiffs and the Receiver, on behalf of the Plaintiffs. The Defendants objected and the Court allowed the parties to brief the issues, after which the Court entered a written "Opinion and Order" dated October 30, 2025, ruling on the First Motion.

As part of the October 30, 2025, order, the Court, among other things, ruled that the Settlement Agreement entered in CL22-3882 between Plaintiffs and Defendants was valid, and

' While the Receivership names Mark D. Schmidt, individually, as a Judgment Debtor, the Receiver has filed an Order in Texas, which has yet to be entered, removing Mark D. Schmidt, individually, from the terms of the Receivership Order in Texas.

that the Order of Receivership was properly recorded in the City of Richmond, without objection. The Receiver in this case was appointed by the Honorable Michael Gomez, on May 22, 2025, in the 129th Judicial Court in Harris County Texas, Cause Number 2024448085, to control the business function, in all respects, of the Defendant Cyberlux Corporation and the individual, Mark D. Schmidt.

Notwithstanding, based on the representation that the Defendants had noted an appeal in the Texas Court of Appeals appealing the denial of the Defendants' Petition for a Writ of Mandamus, and the Defendants' representation that the Defendants had filed an Emergency Motion in the Harris County District Court seeking the termination of the Receivership, the Court denied the entry of the consent order in the First Motion and stayed further rulings pending the resolution of proceedings in Texas.

And it further appearing that, subsequent to the entry of the October 30, 2025, ruling on the First Motion, there has been a change in circumstances causing Plaintiffs to file this second motion to lift the current stay and enter an order based on the original agreement set forth in the First Motion (the "Second Motion"). The Receiver had no objection to the Second Motion.

And it further appearing that by Abatement Order entered in the Texas Court of Appeals on November 4, 2025, the Texas Court of Appeals abated, treated as a closed case, and removed from the docket, the Defendants' appeal of the denial of the Petition for Writ of Mandamus as reflected by Exhibit B attached to Second Motion.

And it further appearing that on November 11, 2025, the Harris County District Court denied Defendants' Emergency Motion to Stay as reflected by Exhibit D attached to the Second Motion.

And it lastly appearing to the court the Receiver has authority to control and or manage

litigation incident to his role and that the Receiver and Plaintiffs have agreed to the entry of a judgment by consent against the Defendants to resolve the Complaint and finalize the litigation, it is therefore ORDERED that judgment is GRANTED in favor of Plaintiffs Atlantic Wave Holdings, LLC and Secure Community, LLC and against Defendants Cyberlux Corporation and Mark D. Schmidt, individually, jointly and severally, as follows:

a. The Court awards Plaintiffs the negotiated sum of SIX MILLION DOLLARS ($6,000,000.00) in compensatory damages, jointly and severally, against Defendants Cyberlux Corporation and Mark D. Schmidt, individually, to resolve the claims alleged in Plaintiffs' complaint.

b. That Plaintiffs be awarded all their costs, including reasonable attorney's fees in the amount of $25,250.50, per the parties agreement and post judgment interest at the rate of 6% per annum from the date of entry of this order.

c. Any remaining Motions pending before the court are dismissed as moot.

d. Plaintiffs' Complaint and Defendants' Counter-Complaint are hereby dismissed with prejudice to the parties.

e. The cause is ended and may be stricken from the docket upon entry of this order.

The Court notes that the Defendants, by counsel, filed a Motion to Quash the December 16, 2025, hearing based on its assertion that the hearing was improperly scheduled, and that defense counsel was unable to appear. The Defendants' counsel of record did not appear. The Plaintiffs filed a Response in Opposition to the Motion to Quash electronically with supporting exhibits. The Defendants then filed a reply, electronically, all of which were reviewed by the court and considered. Based on the pleadings and argument, the Motion to Quash is Denied. The Court

makes no ruling on whether the Defendants had standing to claim defective notice and makes no ruling on whether the Defendants have any appellate rights. It is SO ORDERED.

8
ENTERED This 18 day of December, 2025

WE ASK FOR THIS: G&

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

Charles A. Gavin, VSB#31391 Rudy Coyner, Attorneys at Law 13271 Rivers Bend Blvd. Chester, Virgnia 23836 (804) 748-3600, ext. 306 (804) 748-4671 facsimile E-mail: cgavin@rudycoyner.com Counsel for Atlantic Wave Holdings, LLC and Secure Community, LLC

A Copy Teste: EDWARD F. JEWETT, CLERK BY: Jawanda Randolph D.C.

allmy

Vernon E. Inge, Jr. #32699 Robert N. Drewry, VSB #91282 Whiteford Taylor & Preston, LLP Two James Center 1021 E. Cary Street, Suite 2001 Richmond, VA 23219 804.977.3301 804.977.3291 Facsimile vinge@whitefordlaw.com rdrewry@whitefordlaw.com Counsel for Robert W. Berleth, Receiver

Signature Waived Pursuant to Rule 1:13

Jimmy F. Robinson, Esquire Ogletree Deakins 901 East Byrd Street Suite 1300 Richmond, VA 23219 804-663-2330 jimmy.robinson@ogletree.com Counsel for Cyberlux Corp. & Mark D. Schmidt

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ip-hii-edva-00483-doc-0169-exhibit-4.pdf
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350b7cf406c43ea15dd279aa146e5feb2c0e4bb2f9244b3ffce1ea2bd14d62ff