Exhibit 17
1. On June 23, 2023, a Virginia court presiding over Case No. CL22-3882-4, Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt, in the Circuit Court of the...
DISTIL analysis
- Virginia court entered $1,572,500 judgment against Cyberlux Corporation and Mark D. Schmidt in June 2023
- Texas receivership appointed in May 2025 to enforce judgment, collected $3,083,639.75
- Virginia court disbursed $1,140,004.66 in November 2025 for principal and Virginia legal fees
- Settlement stipulates $873,849.02 in reasonable Texas enforcement attorneys' fees under Section 31.002(e)
- Receiver entitled to $218,462.30 (25% of recovery) per receivership order terms
- Remaining $1,991,328.43 to be returned to Legalist SPV III LP (defendant's funder)
- Settlement resolves Texas action but not pending Virginia Stock Case or Interpleader Action
Extracted text
10 pages · 12783 charactersCAUSE NO. 2024-48085
ATLANTIC WAVE HOLDINGS, LLC
§ IN THE DISTRICT COURT OF
and SECURE COMMUNITY, LLC,
§
§
Plaintiffs/Judgment-Creditor
§
§
V.
§ HARRIS COUNTY, TEXAS §
CYBERLUX CORPORATION and
§
MARK D. SCHMIDT, Individually,
§
§
Defendant/Judgment Debtors.
§ 129TH JUDICIAL DISTRICT
COME NOW, Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC ("Plaintiffs") and Cyberlux Corporation and Mark D. Schmidt ("Defendants") :selected: (collectively, the "Parties"), and file this Joint Notice of Settlement and Joint Motion for Release of Funds, for Satisfaction of Judgment, and to Dissolve Receivership. In support thereof, the Parties state:
This joint motion resolves all remaining disputes between Plaintiffs and Defendants in this Texas enforcement action. This joint motion does not resolve the Parties' disputes
in two pending Virginia actions: (1) Case No. CL24-3910, Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation and Mark D. Schmidt, pending in the Circuit Court of the City of Richmond, State of Virginia ("Stock Case"); and (2) Case No. 3:25-cv-00483, HII Mission Technologies Corp. v. Cyberlux Corp., et al., pending in the United States District Court for the Eastern District of Virginia, Richmond Division, ("Interpleader Action").
Under Texas Civil Practice and Remedies Code Section 31.002(e), Plaintiffs, as the judgment-creditors, are "entitled to recover reasonable costs, including attorney's fees" for their efforts to obtain turnover relief in this Texas enforcement action. The Parties stipulate that Plaintiffs' reasonable costs and attorneys' fees recoverable under Section 31.002(e) are $873,849.02.1
The Receivership Order provides that "Receiver's fees and expenses are considered costs of court" and the fee is "equal to 25% of ... all recoveries and credits against the [Underlying Judgment]." The Parties stipulate that Receiver's fees and expenses are $218,462.30-that is, 25% of the $873,849.02 recovery against the Underlying Judgment to Plaintiffs.
The Parties therefore respectfully ask that this Court: (1) order Receiver to disburse $873,849.02 to Plaintiffs within two business days of entry of this Court's order; (2) permit Receiver to retain $218,462.30, representing Receiver's recoverable fees and expenses; and (3) release $1,991,328.43 to Legalist SPV III, LP within two business days of entry of the Court's order. Furthermore, the Parties ask the Court to order Receiver to provide notice
Docusign EnveCase 5:25-309-004833JACA-Document 175-19 Filed 04/15/26 Page 5 of 10 PageID# 2854
and documentation to the Parties and the Court confirming the funds were disbursed and deposited as ordered.
Upon Plaintiffs' receipt of the $873,849.02 disbursement, the Parties request that the Court mark the Underlying Judgment satisfied and close this Texas enforcement action initiated by Plaintiffs. Upon satisfaction of the Underlying Judgment, the Parties agree to promptly dismiss all Texas actions involving Plaintiffs and Defendants.
Upon satisfaction of the Underlying Judgment (by the foregoing requested disbursement), the Parties request that the Receivership Order be terminated and the receivership closed.
WHEREFORE, PREMISES CONSIDERED, the Parties respectfully pray that the Court order disbursement of funds as requested; mark the Underlying Judgment satisfied, discharge the Receiver, terminate the receivership, and close this action.
Dated: February 26, 2026.
Docusign Envebase 5:25309-0048536 51 888ment 175-19 Filed 04/15/26 Page 6 of 10 PageID# 2855
AGREED AS TO FORM AND SUBSTANCE:
William Welter
Atlantic Wave Holdings, LLC
William Welter
Secure Community, LLC
James Sadigh
James Sadigh Texas Bar No. 24129140 jamessadigh@aol.com
JAMES K. SADIGH, ATTORNEY AT LAW 9777 Wilshire Blvd, Ste 400 Beverly Hills, CA 90212 Tel. (310) 747-5919
David A. Walton Texas Bar No. 24042120 dwalton@bellnunnally.com
BELL NUNNALLY & MARTIN LLP
Attorneys for Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC
DocuSigned by: Mark D. Schmidt CB9EE73498DE446
Cyberlux Corporation
DocuSigned by: Mark D. Schmidt CB9EE73498DE446 ..
Mark D. Schmidt
Signed by: Elizabeth G. Myers,
55C8289DF6E142E Elizabeth G. Myers Texas Bar No. 24047767 emyers@thompsoncoburn.com Douglas S. Lang Texas Bar No. 11895500 dlang@thompsoncoburn.com Alexander J. Pennetti Texas Bar No. 24110208 apennetti@thompsoncoburn.com
THOMPSON COBURN LLP 2100 Ross Avenue, Suite 3200 Dallas, TX 75201 Tel. (972) 629-7100 Fax (972) 629-7171
Attorneys for Defendants Cyberlux Corporation and Mark D. Schmidt
I certify that a true and correct copy of the foregoing instrument was served on all counsel pursuant to the Texas Rules of Civil Procedure on February 25, 2026.
/s/
Alexander J. Pennetti
Alexander J. Pennetti
CAUSE NO. 2024-48085
ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC,
IN THE DISTRICT COURT OF Los Los cos
Plaintiffs/Judgment-Creditor
Los
cos
V.
HARRIS COUNTY, TEXAS los cos
CYBERLUX CORPORATION and
los
MARK D. SCHMIDT, Individually,
cos
los
Defendant/Judgment Debtors.
129TH JUDICIAL DISTRICT cos
BEFORE THE COURT IS the Joint Motion for Release of Funds, for Satisfaction of Judgment, and to Dissolve Receivership filed by Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC ("Plaintiffs") and Cyberlux Corporation and Mark D. Schmidt ("Defendants") (collectively, the "Parties").
UPON CONSIDERATION of the pleadings, evidence, argument of counsel, consent of the Parties, and for good cause shown, the Court:
FINDS THAT the disbursement of funds by the Circuit Court of Fairfax County, Virginia under the terms of the Final Order in Atlantic Wave Holdings, LLC and Secure Community, LLC v. Cyberlux Corporation, Case No. CL-2025-3413 was made towards satisfaction of the judgment underlying this enforcement action ("Underlying Judgment").
FINDS THAT Plaintiffs are entitled to $873,849.02, which represents the reasonable costs and attorneys' fees to which Plaintiffs are entitled, including under Texas Civil Practice and Remedies Code § 31.002(e), for their efforts to enforce the Underlying Judgment.
Docusign Envebase 3:25-09-004833JAG -51 Document 175-19 Filed 04/15/26 Page 8 of 10 PageID# 2857
FINDS THAT Receiver Robert W. Berleth and Berleth & Associates, PLLC is entitled to $218,462.30 in reasonable and recoverable in fees and expenses under Section 31.002, which is 25% of the $873,849.02 recovery awarded to Plaintiffs in this enforcement action.
FINDS THAT $3,083,639.75 was previously transferred by Legalist SPV III, LP on behalf of Defendants to the Receiver, and that amount exceeds recoveries and credits against the Underlying Judgment, and the remaining balance should be disbursed to Legalist SPV III, LP.
FINDS THAT, upon disbursement to Plaintiffs of payment of their reasonable costs and attorney's fees in the amount of $873,849.02, the Underlying Judgment is fully satisfied and this enforcement action initiated by Plaintiffs is moot.
THEREFORE, it is hereby ORDERED, ADJUDGED, and DECREED:
Receiver Robert W. Berleth and Berleth & Associates, PLLC, shall disburse all sums transferred to him for this matter, which are $3,083,639.75. Disbursements are to be made as follows:
IT IS ORDERED THAT the Receiver Robert W. Berleth and Berleth & Associates, PLLC shall disburse all funds, as stated above, within two (2) business days following the entry of this Order.
IT IS ORDERED that the Receiver is discharged.
IT IS ORDERED THAT the Receivership is terminated.
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IT IS FURTHER ORDERED THAT all other matters pending in this action (not otherwise addressed herein) shall be temporarily stayed until the Court determines the reasonableness of Receiver's fees and expenses.
All other relief not expressly provided herein is DENIED.
SO ORDERED.
Honorable Michael Gomez
Docusign Env Case 3.25 -¿ 100483-JAGA-51Document 175-19 Filed 04/15/26 Page 10 of 10 PageID#
AGREED AS TO FORM AND SUBSTANCE:
William Welter
DocuSigned by: Mark D. Schmidt CB9EE73498DE446 ...
Atlantic Wave Holdings, LLC
William Welter
Secure Community, LLC
James Sadigh
James Sadigh Texas Bar No. 24129140 jamessadigh@aol.com
JAMES K. SADIGH, ATTORNEY AT LAW 9777 Wilshire Blvd, Ste 400 Beverly Hills, CA 90212 Tel. (310) 747-5919
David A. Walton Texas Bar No. 24042120 dwalton@bellnunnally.com
BELL NUNNALLY & MARTIN LLP
Attorneys for Plaintiffs Atlantic Wave Holdings, LLC, and Secure Community, LLC
Cyberlux Corporation
DocuSigned by:
Mark D. Schmidt
CB9EE73498DE446 ...
Mark D. Schmidt
Signed by: Elizabeth G. Myers, 56C8289DF6E142E. Elizabeth G. Myers Texas Bar No. 24047767 emyers@thompsoncoburn.com Douglas S. Lang Texas Bar No. 11895500 dlang@thompsoncoburn.com Alexander J. Pennetti Texas Bar No. 24110208 apennetti@thompsoncoburn.com
THOMPSON COBURN LLP 2100 Ross Avenue, Suite 3200 Dallas, TX 75201 Tel. (972) 629-7100 Fax (972) 629-7171
Attorneys for Defendants Cyberlux Corporation and Mark D. Schmidt
Original source file
- File
- ip-hii-edva-00483-doc-0175-exhibit-19.pdf
- Source UID
- source:82382b29595b40b8f12cbd72fec3ac408c129cd3fe4dba504c36d3c85d667773
- Full SHA-256
- 82382b29595b40b8f12cbd72fec3ac408c129cd3fe4dba504c36d3c85d667773