Evidence Record

IP HII EDVA 00483 Doc. 0180 Exhibit 4

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...

Type
exhibit
Court
EDVA
Case
HII v. Cyberlux interpleader
Docket
3:25-cv-00483
Pages
3
Lines
98
SHA-256
183827948643

DISTIL analysis

DISTIL Run
Profile
Standard
Version
1
Doc Type
Amended Final Order and Judgment
Total Nodes
28
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
Amended Final Order and Judgment Circuit Court of the City of Richmond Civil litigation settlement 2023
settlement_agreementbankruptcy_waiversecurity_interestdismissed_without_prejudice
Analytical Frame
Legal settlement and judgment enforcement
Analytical Summary
This amended final order documents a settlement agreement between Atlantic Wave Holdings, LLC and Secure Community, LLC (plaintiffs) against Cyberlux Corporation and Mark D. Schmidt (defendants) in Richmond Circuit Court case CL22-3882-4. The court awarded plaintiffs $1,572,500 in compensatory damages, jointly and severally against both defendants, plus attorney's fees of $177,126.19, sanctions totaling $10,737.50, and post-judgment interest at 12% per annum. The judgment includes provisions making it non-dischargeable in bankruptcy, establishing security interests and lien interests in defendants' property until full payment, and waiving defendants' rights to reconsideration or appeal. The plaintiffs' complaint was dismissed without prejudice upon entry of this settlement order in 2023.
Key Points
  • Judgment of $1,572,500 in compensatory damages awarded jointly and severally against Cyberlux Corporation and Mark D. Schmidt
  • Additional awards include attorney's fees of $177,126.19 and sanctions totaling $10,737.50
  • Judgment declared non-dischargeable in bankruptcy with defendants waiving appeal rights
  • Security interests and lien interests granted to plaintiffs in all defendants' property until full payment
  • Post-judgment interest set at 12% per annum from date of order entry
  • Plaintiffs' complaint dismissed without prejudice following settlement
Stage 2
Core — Entities, Events, Claims
18 nodes
ENT-001
Entity
Atlantic Wave Holdings, LLC
Atlantic Wave Holdings, LLC - plaintiff in civil litigation matter
Page 1 — ATLANTIC WAVE HOLDINGS, LLC
ENT-002
Entity
Secure Community, LLC
Secure Community, LLC - co-plaintiff in civil litigation matter
Page 1 — SECURE COMMUNITY, LLC
ENT-003
Entity
Cyberlux Corporation
Cyberlux Corporation - defendant corporation in civil litigation
Page 1 — CYBERLUX CORPORATION
ENT-004
Entity
Mark D. Schmidt
Mark D. Schmidt - individual defendant and President of Cyberlux Corporation
Page 1, 3 — MARK D. SCHMIDT, individually and as President of Cyberlux Corporation
ENT-005
Entity
Circuit Court of the City of Richmond
Circuit Court of the City of Richmond - venue court issuing the amended final order
Page 1 — IN THE CIRCUIT COURT OF THE CITY OF RICHMOND
ENT-006
Entity
Hon. Jacqueline S. McClenney
Hon. Jacqueline S. McClenney - Presiding Judge of the Circuit Court for the City of Richmond
Page 2 — Hon Jacqueline S. McClenney, Presiding Judge Circuit Court for the City of Richmond
EVT-001
Event
Settlement agreement reached
Parties reached a settlement agreement resolving the need for continuing litigation in case CL22-3882-4
Page 1 — IT APPEARING to the Court that the parties hereto have reached a settlement agreement that resolves the current need for continuing litigation.
EVT-002
Event
Court entry of amended final order
Court entered amended final order and judgment granting plaintiffs' motion with consent of defendants in 2023
Page 2 — ENTERED this day of , 2023.
EVT-003
Event
Judgment granted in favor of plaintiffs
Court granted judgment in favor of Atlantic Wave Holdings, LLC and Secure Community, LLC against defendants
Page 1 — 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
EVT-004
Event
Dismissal of complaint without prejudice
Plaintiffs' complaint was dismissed without prejudice, ending the cause
Page 2 — Plaintiffs' Complaint is hereby dismissed without prejudice. THIS CAUSE IS ENDED.
CLM-001
Claim
Compensatory damages award of $1,572,500
Court awarded plaintiffs $1,572,500 in compensatory damages jointly and severally against Cyberlux Corporation and Mark D. Schmidt
Page 1, 2 — 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
CLM-002
Claim
Attorney's fees award of $177,126.19
Court awarded plaintiffs attorney's fees of $177,126.19 per settlement agreement, evidenced by affidavits and consented to by defendants
Page 2 — 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
CLM-003
Claim
Sanctions totaling $10,737.50
Court awarded sanctions of $3,895.00 and $6,842.50 as provided by previous court orders
Page 2 — plus sanctions of $3,895.00 and $6,842.50, as provided by the Court's previous Orders
CLM-004
Claim
Post-judgment interest at 12% per annum
Court awarded post-judgment interest at the rate of 12% per annum from date of entry on damages
Page 2 — 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
CLM-005
Claim
Judgment non-dischargeable in bankruptcy
Parties agreed that final judgment shall not be dischargeable in bankruptcy to the fullest extent permissible at law
Page 2 — The parties agree that this Final Judgement shall not be dischargeable in bankruptcy to the fullest extent permissible at law
CLM-006
Claim
Defendants waived appeal rights
Defendants waived all rights of reconsideration or appeal
Page 2 — Defendants hereby waive all rights of reconsideration or appeal
CLM-007
Claim
Security interest and lien in defendants' property
Parties agreed to security interest and lien interest in all property of defendants in favor of plaintiffs until all sums are paid
Page 2 — 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
CLM-008
Claim
Sole obligation of defendants
Judgment is sole obligation of defendants, not subject to contribution or reduction through payments of other parties
Page 2 — 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.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
5 nodes
TEN-001
Tension
Dismissal without prejudice despite settlement
The complaint is dismissed without prejudice despite being settled with a final judgment, suggesting plaintiffs retain ability to refile claims if settlement terms are breached
Page 2 — Plaintiffs' Complaint is hereby dismissed without prejudice. THIS CAUSE IS ENDED.
TEN-002
Tension
Joint and several liability structure
Both Cyberlux Corporation and Mark D. Schmidt are held jointly and severally liable, placing individual personal liability on Schmidt alongside corporate liability
Page 1 — against Defendants CYBERLUX CORPORATION and MARK D. SCHMIDT, jointly and severally
QST-001
Question
What are the underlying claims?
The document does not specify the nature of the claims alleged in the plaintiffs' complaint that led to the $1.57M compensatory damages award
Page 2 — to resolve the claims alleged in Plaintiffs' Complaint
QST-002
Question
What are the 'certain other claims' in the settlement?
The order references 'certain other claims as agreed to by the parties pursuant to the parties' separate agreement' but does not detail what these additional claims are
Page 2 — certain other claims as agreed to by the parties pursuant to the parties' separate agreement
QST-003
Question
What conduct led to prior sanctions?
The order references sanctions from previous court orders totaling $10,737.50 but does not specify what conduct or violations prompted these sanctions
Page 2 — plus sanctions of $3,895.00 and $6,842.50, as provided by the Court's previous Orders
Stage 4
Interpretive — Inferences, Omissions, Patterns
5 nodes
INF-001
Inference
Comprehensive creditor protection mechanisms
The combination of non-dischargeability in bankruptcy, security interests, liens, waiver of appeal rights, and 12% interest suggests plaintiffs sought and obtained unusually strong creditor protections, likely indicating concerns about defendants' ability or willingness to satisfy judgment
Page 2 — The parties agree that this Final Judgement shall not be dischargeable in bankruptcy to the fullest extent permissible at law... That the parties have agreed to a security interest and lien interest in all property of Defendants... Defendants hereby waive all rights of reconsideration or appeal... post judgment interest at the rate of 12% per annum
INF-002
Inference
Settlement addresses claims beyond complaint
The order indicates damages resolve claims alleged in complaint 'and certain other claims as agreed to by the parties pursuant to the parties' separate agreement,' suggesting broader dispute resolution than the filed complaint alone
Page 2 — to resolve the claims alleged in Plaintiffs' Complaint and certain other claims as agreed to by the parties pursuant to the parties' separate agreement
INF-003
Inference
Prior court sanctions indicate contentious litigation
The inclusion of sanctions totaling $10,737.50 from previous court orders suggests the litigation involved discovery disputes, procedural violations, or other sanctionable conduct prior to settlement
Page 2 — plus sanctions of $3,895.00 and $6,842.50, as provided by the Court's previous Orders
OMI-001
Omission
Payment terms not specified
The order does not specify payment schedule, deadlines, or whether lump sum or installment payments are required for the $1.57M judgment plus fees and interest
Page 1, 2 — The Court awards Plaintiffs the sum of ONE MILLION FIVE HUNDRED SEVENTY-TWO THOUSAND AND FIVE HUNDRED DOLLARS ($1,572,500) in compensatory damages
OMI-002
Omission
Exact order entry date incomplete
The order entry date line shows 'ENTERED this day of , 2023' with blank fields, making the precise date of judgment entry unclear from this document
Page 2 — ENTERED this day of , 2023.

Extracted text

3 pages · 3678 characters

IP HII EDVA 00483 Doc. 0180 Exhibit 4 — Formatted Extract

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

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.

day of , 2023. ENTERED this 2º SAK

Sully

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

A Copy Teste: EDWARD F<JEWETT, CLERK BY:

WE ASK FOR THIS: 18hycui

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:

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

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

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File
ip-hii-edva-00483-doc-0180-exhibit-4.pdf
Source UID
source:183827948643039c2fac6c24809b93ff6da11fefc4032e7873448198c09cb78f
Full SHA-256
183827948643039c2fac6c24809b93ff6da11fefc4032e7873448198c09cb78f