Exhibit 2 — January 16, 2025 Gomez receivership and discovery hearing transcript

1HearingJanuary 16, 2024 REPORTER'S RECORD VOLUME 1 OF 1 VOLUMES TRIAL COURT CAUSE NO. 2024-48085 ATLANTIC WAVE HOLDINGS, ) IN THE DISTRICT COURT LLC AND SECURE COMMUNITY, )LLC )) vs. ) HARRIS COUNTY, TEXAS ) CYBERLUX CORPORATION AND )MARK D. )SCHMIDT, INDIVIDUALLY ) 129TH JUDICIAL DISTRICT _____________________________________________ HEARING _____________________________________________ On the 16TH day of January, 2025, the followingproceedings came on to be held in the above-titledand numbered cause before the Honorable MichaelGomez, Judge Presiding, held in Houston, HarrisCounty, Texas. Proceedings reported by computerized stenotypemachine. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

99William Welter - January 16, 2024Cross-Examination by Ms. ClarkMS. CLARK: Your Honor, I'm going toobject as nonresponsive.THE COURT: Sustained.She hasn't posed a question. So untilthen, please don't say anything.THE WITNESS: Okay.Q (By Ms. Clark) I just wanted to direct yourattention to what you were just talking to your counselabout, and that was a statement in the disclosures withrespect to the -- an address reference. Do you remember talking to your attorneyabout that, sir?A For the address of Cyberlux or their Spring,Texas, facility?Q Spring, Texas, sir.A Yes, I remember that.Q I'm trying to go get to that page.Have you ever visited the facility inSpring, Texas?A I have not.Q So you don't know what's inside it, right?A I do not. We've been trying to find out forabout a year and -- with no -- no --MS. CLARK: Your Honor, I'm going toobject again as nonresponsive. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

101William Welter - January 16, 2024Cross-Examination by Ms. ClarkMS. CLARK: Okay. Okay.THE COURT: The amended and final order.So --MS. CLARK: Okay.A I'm having trouble finding it, but I know thejudgment pretty well. And if you want to -- I don'twant to hold you up any further. If you want to goforward. I cannot find a copy on my computer of thejudgment for some reason.Q (By Ms. Clark) Well, sir, so within thejudgment it talks about specifically that there is anamount of $177,126.19 for reasonable attorney's fees. Do you remember that part of the judgment?A I do.Q Okay.MR. VARGO: Objection, relevance.THE COURT: It's overruled. I'll let her -- MR. VARGO: All right.THE COURT: -- for right now.Q (By Ms. Clark) And you were talking with theCourt earlier. My understanding is that that amount of$177,126.19 has been paid; is that true?A I don't mean to interrupt you, but I have founda copy of it. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

25HearingJanuary 16, 2024THE COURT: The Court is back on therecord. So I've been tendered a copy ofPlaintiffs' first set of requests for admissions todefendant.Did they respond to that, the RFAs?MR. PENNETTI: Sorry, Your Honor?THE COURT: I'm assuming they responded tothe RFAs?MR. PENNETTI: Judge, we have a Motion forProtection pending. We asked for a hearing on that.Mr. Grady didn't give us availability. Your firstavailability when I asked for the hearing was actuallyMonday of this week, and I never got a substantiveresponse on that. And then we engaged on a variety ofother motion --THE COURT: So you haven't responded tothe RFAs?MR. PENNETTI: No.And, again, Your Honor, as Ms. Clarkpointed out, those are not standard post-judgment RFAsanyways. They're outside the scope. The scope ofpost-judgment discovery is relevant to the collectionefforts. And most of those, as you'll see, are not.MR. VARGO: Admit that Cyberlux has not 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

1HearingJanuary 16, 2024 REPORTER'S RECORD VOLUME 1 OF 1 VOLUMES TRIAL COURT CAUSE NO. 2024-48085 ATLANTIC WAVE HOLDINGS, ) IN THE DISTRICT COURT LLC AND SECURE COMMUNITY, )LLC )) vs. ) HARRIS COUNTY, TEXAS ) CYBERLUX CORPORATION AND )MARK D. )SCHMIDT, INDIVIDUALLY ) 129TH JUDICIAL DISTRICT _____________________________________________ HEARING _____________________________________________ On the 16TH day of January, 2025, the followingproceedings came on to be held in the above-titledand numbered cause before the Honorable MichaelGomez, Judge Presiding, held in Houston, HarrisCounty, Texas. Proceedings reported by computerized stenotypemachine. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

46HearingJanuary 16, 2024motions because they're the ones withholding thedocuments pursuant to whatever it is that they're sayingis so confidential and proprietary and that we shouldn'thave, as opposed to us continuing to expend resources onthese items.THE COURT: Response.MS. CLARK: Your Honor, I just -- we hadtime out there. Nothing was proposed to us. I think Iunderstand what he's saying, but I would love to seewhat it really looks like on paper. I mean, if thebottom line is, is that you want us to come to court butwe can mark them and they're going to remain AEO for atime, I don't have a problem with that, Your Honor.I don't think there's any issue with that.I think we would have the burden to show they're AEO atthe end of the day no matter what.THE COURT: So I -- look, it'spost-judgment. I don't think I've had an AEOpost-judgment discovery --MR. VARGO: Exactly.THE COURT: -- issue, ever. So myassumption is you're going to have very few AEOdocuments, unless they involve something that is a tradesecret, a privilege of some sort, some sort of nationalsecurity issue. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

50HearingJanuary 16, 2024compensated with attorney's fees, I'll award attorney'sfees to the degree that they -- it's post-judgment.They should be complying. They should be giving youstuff. To the degree that you have to spend time,write motions, do that thing, I'm going to awardattorney's fees, right? So you're going to get thatback to the degree you can get any of that back.But we're spending a lot of time talkingabout hypotheticals. Let's see what they do, and thenwe talk about what happens. So I'll go ahead and enterthat order, and then we can move on discovery and thenwe can move on to this other stuff.So the Court -- what are the -- so what'sthe outstanding discovery? So you have your firstrequest, and then you have -- you want to do aninspection, and then you wanted to do depos.MR. GRADY: Yes, Your Honor.THE COURT: What did you want to deal withfirst?MR. GRADY: Depositions.THE COURT: So who are you looking to dodepos of?MR. GRADY: Three witnesses; NeillWhiteley, Phil Tucker, and Mark Schmidt. Mark Schmidt 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

55HearingJanuary 16, 2024imagine why we couldn't find a time and a date in30 days that we can present him. We've been able to dothat each time we've gone out looking for dates.THE COURT: Okay. And let me tablewhether it's in person or not for a moment.Who are the other two folks?MR. GRADY: Neill Whiteley and PhillipTucker.THE COURT: Whiteley. And what's hisrelationship to the case?MR. GRADY: So there's been some confusionor -- you know, we asked opposing counsel, you know,their capacities and were told different things atdifferent times. I've got notes.THE COURT: I'm sorry. Whiteley'srelationship, again, is what?MR. GRADY: Well, we believe that they'reexecutives of Cyberlux and that they're represented bysame counsel over here.THE COURT: Is that true?MS. CLARK: No, Your Honor. AndMr. Pennetti knows the details.MR. PENNETTI: It's been our understandingthey've been consultants. I've conveyed thatconsistently ever since this started. Both of them were 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

57HearingJanuary 16, 2024THE COURT: Okay. So you're fine withboth of them?MR. PENNETTI: Yeah.THE COURT: Okay. So 30 days, they canappear in person?MR. PENNETTI: I don't see why not.THE COURT: Okay. So we'll order allthree in 30 days. The two local folks, they'll be inperson; and Mr. Schmidt via video deposition. If itturns out it's a problem, he's not cooperative, then youcan come back and say, I want an in-person depo. Sothat will be the -- that will be the potential sanction.What's next?MR. GRADY: Written discovery. We've gotrequests for production, request for admissions. Ibelieve we have interrogatories, too.MR. PENNETTI: That's right.THE COURT: So I have RFAs 1 through 31.Any of these you find highly problematic that you can'tanswer yes or no?MR. PENNETTI: Based on my recollection,no. But let me -- I don't remember any that are highlyproblematic. The ones that I point out, No. 9references a government contract. And while I think myclients did reference that contract online, I'm not sure 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

63HearingJanuary 16, 2024sufficient.And so that being said, is there somethinghere that you have an issue with that you would like thecourt to address?MR. PENNETTI: Not at this time.THE COURT: Okay. So you're fine withproducing documents responsive?MR. PENNETTI: Yes.THE COURT: Okay. So it looks like we'regood with 18.Do we have anything else?MR. GRADY: The site inspection.THE COURT: Where are we on the siteinspection?MR. PENNETTI: The only thing I'd say iswhat's important with that is we'd have to have somesort of protocol. It can be very basic, a record ofwho's there, whether there's going to be photographs,videos taken, a provision for exchange of those, andthen the fact that the inspection and anythingcollected -- data collected there is subject to theprotective order, and that's all we ask. And, again, I think we're generally finewith that, so long as the real property owner and theowner of the property and if we give them notice, I 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

67HearingJanuary 16, 2024time to move the stuff, which is exactly our concern --reason for having it done quickly.MR. PENNETTI: I don't really think thisis a --THE COURT: Where's the warehouse?MR. GRADY: In Spring, Texas.THE COURT: And it's a warehouse, right?MR. PENNETTI: That's right.THE COURT: Can you describe it for me,please?MR. PENNETTI: It's a --MS. CLARK: It's two units at anindustrial complex in the Spring, Texas area that -- Ican't remember the square footage, but they'rerelatively large. I bet it would take a little while towalk it, if that helps Your Honor. It's, like, Unit Aand D; and they're not contiguous. That's what I know.I have not visited the site, but I've seen pictures.THE COURT: Is it -- are people officedthere, or is it just a storage warehouse?MR. PENNETTI: Predominantly storage.MS. CLARK: I think -- yeah, I think atone time it had manufacturing capability; but at thispoint my understanding is that it's primary storage ofthe produced product. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

72HearingJanuary 16, 2024discussing dates with the other side. They're importantwitnesses; Charles Watts, Chuck Watts, and JimmyRobinson, too. So we -- and that's it. That's all thedepositions. I forgot to mention those. My apologies.THE COURT: That's fine. But you haven'tnoticed them yet, right?MR. GRADY: We have not. We werediscussing dates and trying to arrange it.THE COURT: I'll just see if you folks canwork it out, and then the assumption is that they'llprovide you dates soon. And then you'll find a datewithin the next -- within a reasonable time period. MR. GRADY: Okay.THE COURT: If they don't provide dates,then we can have a conversation about it. But I'll letyou work together first.MR. GRADY: Will do, Your Honor.THE COURT: Okay. Let me go ahead and --how much time did you need to respond to the discoveryrequests?MR. PENNETTI: Judge, may I havetwo weeks?THE COURT: Is that fine? Fourteen days?MR. GRADY: Fourteen days, calender days?THE COURT: Yes. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

74HearingJanuary 16, 2024MR. GRADY: Well, the other side has shownthat they have been evasive with discovery; but, also --of course, we have discovery orders today; but moreimportantly, they've dissipated assets. They had anagreement in place with us that they would give us apercentage of the receivables; and then without tellingus, they sold that to a factory company.THE COURT: So was this agreement thesettlement agreement on the Virginia judgment?MR. GRADY: Exactly, Your Honor.THE COURT: When was that entered into?MR. GRADY: It was entered into, I think,current -- around the time of the judgment, which is inJune of '23. And then I was informed by my client, whocould speak in greater detail, but that they learnedabout this either in October or November about thesale -- they had sold the receivables to the factor muchearlier in '24, I believe in March, and then -- but wedid not find out until late, you know, in the fall.THE COURT: So you entered into asettlement agreement June 15th?MR. GRADY: Yes, that sounds right,Your Honor.THE COURT: Okay. So right after you gotthe judgment, or right around? 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

85HearingJanuary 16, 2024MR. WELTER: Yes, Judge. Can you hear me?THE COURT: I can. I think -- can youspeak up?MR. WELTER: When counsel speaks from thetable, I can hear them fine. It's just when they stand.Someone just opened up the whole courthouse view. So Ican now see the whole courtroom. And when they standup, for some reason maybe they're too far from themicrophone.THE COURT: Yeah, the microphones are infront of them.But you're not getting any reverb, and youcan hear me?MR. WELTER: I can hear you fine, Judge.THE COURT: Can we test?Counsel, can you --MR. VARGO: Yes. Can you hear me?MR. WELTER: Yes. MR. VARGO: Outstanding.MR. WELTER: Whoever just spoke, I canhear.MR. PENNETTI: Can you hear us?MR. WELTER: Yes.THE COURT: Okay. Let's -- it's supposedto be piping through here, through the Court's speakers. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

89William Welter - January 16, 2024Direct Examination by Mr. VargoA Okay.Q And tell us what you're looking at.A The disclosure statement pursuant to thePink -- Pink basic disclosure guidelines, CyberluxCorporation.Q Okay. Hold on just a moment.THE COURT: You have a copy of that, I'massuming?MR. VARGO: I do. It's filed in therecord. It's the 66-page document.THE COURT: Does opposing counsel have acopy?MR. PENNETTI: We have a copy.MR. VARGO: All right.MS. CLARK: Well, Your Honor, excuse me.My confusion is just that the document I have is labeledExhibit 3, and he just said Exhibit 2. Think we'retalking about the same thing, but I just want todouble-check. I apologize.MR. VARGO: Yeah, no problem. Here yougo. On the docket, it's the one that's 66 pages.MS. CLARK: Okay. Thank you.MR. VARGO: Yes.Q (By Mr. Vargo) Okay. Sir, so on -- let me pullthis thing back up. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

3HearingJanuary 16, 2024THE COURT: Court's on the record, CauseNo. 2024-48085, Atlantic Wave Holdings, LLC versusCyberlux.Will everyone, please, introducethemselves for the record?MR. GRADY: Good afternoon, Your Honor.Shawn Grady for Atlantic Wave Holdings. And myco-counsel, Travis Vargo, is here, as well.MR. PENNETTI: Alex Pennetti for Cyberluxand Mark Schmidt.MS. CLARK: Katharine Clark on behalf ofCyberlux and Mark Schmidt.THE COURT: So how can I help you today?MR. VARGO: Well, I believe there's acouple matters that are set for today. One is anapplication of appointment of post-judgment receiverunder Texas C.P.R.C. 31.002, the turnover statute. Andthe other one is a request for access to the premises.In this case there's a written motion.There's also ample evidence inside the docket that wouldsupport the appointment of a receiver. The -- to theextent that it's deficient, we would also ask for accessto a premises. Because in the debtor's response,they're saying, Well, there's no evidence attached tothe application of what's at that premises. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

93William Welter - January 16, 2024Direct Examination by Mr. Vargoor important concerning Section 5 on page 18 of 46?A Well, it -- in this section, it details thedifferent companies that are involved with Cyberlux. Ittalks about their -- what is located at each facility.And primarily to Texas, it says, Catalyst Machineworkshas its offices and manufacturing facilities located at21631 Road, Spring, Texas 77488. And then it goes on to say, This is a21,450-foot square-foot facility, with a renewablethree-year lease, with one and a quarter year remaining.Q Is this document a true and correct copy of thedisclosure that you downloaded from the OTC's website?A Yes.Q All right. I see the next paragraph down thererefers to "our Datron World Communications subsidiary." Is that what it says there?MS. CLARK: Your Honor, I object. Thedocument speaks for itself -- A That is correct.MR. CLARK: -- and it's not in evidence,Your Honor.THE COURT: That's fine.MR. VARGO: I move to admit thedisclosure.THE COURT: You're seeking to move what, 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

99William Welter - January 16, 2024Cross-Examination by Ms. ClarkMS. CLARK: Your Honor, I'm going toobject as nonresponsive.THE COURT: Sustained.She hasn't posed a question. So untilthen, please don't say anything.THE WITNESS: Okay.Q (By Ms. Clark) I just wanted to direct yourattention to what you were just talking to your counselabout, and that was a statement in the disclosures withrespect to the -- an address reference. Do you remember talking to your attorneyabout that, sir?A For the address of Cyberlux or their Spring,Texas, facility?Q Spring, Texas, sir.A Yes, I remember that.Q I'm trying to go get to that page.Have you ever visited the facility inSpring, Texas?A I have not.Q So you don't know what's inside it, right?A I do not. We've been trying to find out forabout a year and -- with no -- no --MS. CLARK: Your Honor, I'm going toobject again as nonresponsive. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

101William Welter - January 16, 2024Cross-Examination by Ms. ClarkMS. CLARK: Okay. Okay.THE COURT: The amended and final order.So --MS. CLARK: Okay.A I'm having trouble finding it, but I know thejudgment pretty well. And if you want to -- I don'twant to hold you up any further. If you want to goforward. I cannot find a copy on my computer of thejudgment for some reason.Q (By Ms. Clark) Well, sir, so within thejudgment it talks about specifically that there is anamount of $177,126.19 for reasonable attorney's fees. Do you remember that part of the judgment?A I do.Q Okay.MR. VARGO: Objection, relevance.THE COURT: It's overruled. I'll let her -- MR. VARGO: All right.THE COURT: -- for right now.Q (By Ms. Clark) And you were talking with theCourt earlier. My understanding is that that amount of$177,126.19 has been paid; is that true?A I don't mean to interrupt you, but I have founda copy of it. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

105William Welter - January 16, 2024Cross-Examination by Ms. Clarkthe judgment.MS. CLARK: Your Honor, I pass thewitness.MR. WELTER: Judge, can I add one thing tothat last sentence?THE COURT: No.MR. WELTER: All right. Thank you.THE COURT: Did you have any questions?MR. VARGO: No, Judge.THE COURT: Okay. Any other witnesses orany other evidence?MR. VARGO: No.THE COURT: Okay.Okay. So what -- so where are we at now? MR. VARGO: Plaintiffs move for entry ofan application to appointment a receiver.MS. CLARK: Obviously, Your Honor -- orwould you like to hear my argument about why itshouldn't be awarded?THE COURT: Yes, please.MS. CLARK: Your Honor, we object to theappointment of a receiver. The statutory prerequisitesof 31.002 have not been met. Mr. Welter testified hehad no knowledge of the property that's located inSpring, Texas, or at the Datron facility. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

112William Welter - January 16, 2024Cross-Examination by Ms. Clarkturnover, it's going to disrupt; and then we're notgoing to have anything to pay. And it's going to be aproblem.But I don't think those discussions havebeen had, right?MS. CLARK: No. We've been spending allour time just trying to get ready for today, and we -- Ithink the parties -- the most they could do is say,Let's try mediation and -- THE COURT: And I'm not -- MS. CLARK: So, no, I don't think thediscussions have been had.THE COURT: I understand, Counselor. AndI appreciate that you've just been brought on; but thisis not a new judgment for your client, right? So I'mnot -- I'm talking about your client when I --MS. CLARK: Yes. No, no, no. THE COURT: And I'm not -- MS. CLARK: That's what I was speaking to,whose talked about it.THE COURT: And I appreciate your positionas counsel being difficult, but I'm trying to -- we'rereally just talking about the judgment debtor here, whathave they done since the judgment was entered -- MS. CLARK: Right. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

115William Welter - January 16, 2024Cross-Examination by Ms. ClarkTHE COURT: The -- the other thing is Ithink there's been some recent case law regardingreceiver fees that you might want to take a look at.MR. VARGO: I'm familiar. It's apresumptive fee, and there's a subsequent hearing. THE COURT: Yeah.MR. VARGO: He needs to talk about histime and the factors.THE COURT: Yeah. So I don't know ifthat's been -- the order has been changed to reflectthat.MS. CLARK: Right now, Your Honor, itspeaks to a 25 percent cap to be earned on everythingthat is taken and sold. And the case law, as I recall,Your Honor, talks about the resume being required of thereceiver to understand their qualifications to evenserve and then to look at what is appropriate, becauseit has to be reasonable. And so right now I do not think that theorder, as it's written, takes into account that caselaw.MR. VARGO: We'll file an amended order,and we'll address those two items. If she's gotconcerns about the qualifications, can I call Mr.Berleth to talk about his qualifications? 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

118William Welter - January 16, 2024Cross-Examination by Ms. ClarkMR. VARGO: I can cut out any duplicativestuff; but, I mean, I would submit that the RFPs thatare attached -- I say "RFPs," the requests for documentsrelated to the debtor that we ordered be produced, thisis, you know, elementary-type stuff. Where are yourbank accounts? What are your assets?THE COURT: Right. And so I understandthere's a continuing obligation and whatnot. That'sfine. Why don't you take a look at that. And you cantake a look at the form.MR. VARGO: I can condense it and cut itdown and obviously send an MS Word to your staff so youcan -- with copy to counsel, of course.MS. CLARK: Your Honor, I really thinkit's important to go through this order. Because thisis an extreme remedy to have a receiver appointed tojust come in and open our mail, change our locks.THE COURT: So is that the plan, or what'sthe plan? And so why don't you introduce yourselffor the record.MR. BERLETH: Your Honor, may I approach?THE COURT: Yes. MR. BERLETH: My name is Robert Berleth.I'm the proposed receiver. I am a member in good 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

124William Welter - January 16, 2024Cross-Examination by Ms. Clarka record with respect to objecting to this form oforder? Because I was not done, and I really want arecord on this.THE COURT: Okay. So before you do that,the Court is going to grant the application and appointa receiver. We need to -- we talked about fixing theorder and amending it to address the concerns that wereraised before. And so what the Court currently has isnot what I'm going to enter. I don't know specifically what yourobjection -- if you have additional objections thanwe've already discussed.MS. CLARK: Yes.THE COURT: Yes, you want to go ahead andelaborate on those?MS. CLARK: Yes, I would, Your Honor. The receiver statute states that the Courtmay appoint a receiver with the authority to takepossession of the nonexempt property, sell it, and paythe proceeds to the judgment creditor to the extentrequired to satisfy the judgment. That's what the statute says. This orderdoes not do that. This order allows the receiver lotsof powers. And, basically, he can go on a wild goosechase, look at everything. What's the point of the 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

124William Welter - January 16, 2024Cross-Examination by Ms. Clarka record with respect to objecting to this form oforder? Because I was not done, and I really want arecord on this.THE COURT: Okay. So before you do that,the Court is going to grant the application and appointa receiver. We need to -- we talked about fixing theorder and amending it to address the concerns that wereraised before. And so what the Court currently has isnot what I'm going to enter. I don't know specifically what yourobjection -- if you have additional objections thanwe've already discussed.MS. CLARK: Yes.THE COURT: Yes, you want to go ahead andelaborate on those?MS. CLARK: Yes, I would, Your Honor. The receiver statute states that the Courtmay appoint a receiver with the authority to takepossession of the nonexempt property, sell it, and paythe proceeds to the judgment creditor to the extentrequired to satisfy the judgment. That's what the statute says. This orderdoes not do that. This order allows the receiver lotsof powers. And, basically, he can go on a wild goosechase, look at everything. What's the point of the 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

130William Welter - January 16, 2024Cross-Examination by Ms. Clarkreasonably small amount of property that's going to besold that's not going to satisfy the judgment, he needsto absolutely sequester that, keep it safe, and makesure that he has the ability to sell it.Many times things might weigh a lot. Atransport could be crazy. I can tell you personallythat I went to South Texas one time and dealt with 23locomotives. I had to get a special court order out ofHarris County to specifically sequester the property inplace and hold an auction within 48 hours.Well, there was a lot of heavy equipment.It was 2 miles from the border. All types ofcircumstances come up that would require very heightenedauthority. In this instance, that doesn't mean he hasto use it.MS. CLARK: We're not talking about --they identified leasehold rights and stock. We are nottalking about the property that's inside it, which theystate is owned by a subsidiary, we state is owned by thegovernment. So we're talking about stock. We'retalking about leasehold rights. So that's where I havethe issue.THE COURT: Right. Mr. Berleth, you're not going to sellgovernment property, right? 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

8HearingJanuary 16, 2024But that being said, I do agree with theconcept that, Look, if you're not telling us what youhave and you're hiding your assets, then thatspecificity requirement can't be met; and you can'treally hold the receiver responsible -- or the applicantresponsible for the failure to provide that information.So it weighs against the denial of a Motion forTurnover.So that's just sort of -- so I agree withthose sort of guiding principles. So to the -- if theissue is, Look, we're not willing to turn over becausewe're concerned about them giving it to third parties, Idon't have a problem with that conceptually. I don'tknow what the problem is on a protective order.What's your issue?MR. GRADY: Your Honor, I can speak tothis.They did submit a protective order fromthe Southern District. It has an attorney's eyes onlyprovision on there. And, you know, we don't -- I don'tunderstand this business, and I need -- my client needsto see the documents, simple as that. But we havemade --THE COURT: So why does your client needto see the business? 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

133William Welter - January 16, 2024Cross-Examination by Ms. Clarkproperty interests. They deal with the government. Thegovernment may have some interest, and you don't want torun afoul of any of those potential issues. And so I assume you're going to try toclear all that up and make sure you're doing the rightthing as it relates to that kind of property.MR. BERLETH: Correct, Your Honor. I havenot been as successful in this courthouse by beingunreasonable.THE COURT: Again, and some of this isrhetorical; but we're just having this conversation onthe record so there's no misunderstandings. And you --I'm sure you're -- I'm sure this is not anything that isa problem; but just so we're clear, we've had thisdiscussion before and so there's no surprises. And I'msure you'll try to do everything in an appropriate waygoing forward.So with that, I think we're spinning ourwheels a little bit.MS. CLARK: Your Honor, respectfully, I donot want to walk out of this courtroom withoutunderstanding the order with respect to the receiver.Does he have to have a bond? What is the language goingto look like so that I can inform my client, at aminimum, how to get ready for the disruption that is 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

137HearingJanuary 16, 2024STATE OF TEXAS COUNTY OF HARRIS I, Jennifer Gajevsky, Official Court Reporter in andfor the 129th District Court of Harris, State ofTexas, do hereby certify that the above andforegoing contains a true and correct transcriptionof all portions of evidence and other proceedingsrequested in writing by counsel for the parties tobe included in this volume of the Reporter's Recordin the above-styled and numbered cause, all of whichoccurred in open court or in chambers and werereported by me.I further certify that this Reporter's Record of theproceedings truly and correctly reflects theexhibits, if any, offered by the respective parties. /s/ Jennifer Gajevsky Jennifer Gajevsky, CSR Texas CSR 9250 Official Court Reporter 129th District Court Harris County, Texas 201 Caroline Houston, Texas 77002 Expiration: 2/2026 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

21HearingJanuary 16, 2024just got to tell me one thing.MR. VARGO: Right. Just -- THE COURT: I mean, if the order says Iget to do more than one thing, you're going to have aproblem; but that gets us there.MR. VARGO: Sure. It's going to be thesubsidiary named Catalyst Metalworks [sic], which has anoffice and a manufacturing facility located at21631 Rhodes Road, Spring, Texas 77388. This is a21,450-square-foot facility with a renewable three-yearlease with one and a quarter years remaining.THE COURT: So what are you seeking?MR. VARGO: We're seeking a turnover ofthat -- of the subsidiary.THE COURT: So -- what kind of businessentity is it?MR. VARGO: Well --MR. GRADY: Manufacturer.THE COURT: I mean, no, what kind of --MR. GRADY: Yeah, it's an LLC, I believe,Your Honor. Actually, I don't know that for sure.Your Honor, this is a -- Plaintiffs'Exhibit 2 is an operating report of Cyberlux, which is acorporation. And as a corporation, it discloses itsincome in this. This report is dated September 30th, 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

25HearingJanuary 16, 2024THE COURT: The Court is back on therecord. So I've been tendered a copy ofPlaintiffs' first set of requests for admissions todefendant.Did they respond to that, the RFAs?MR. PENNETTI: Sorry, Your Honor?THE COURT: I'm assuming they responded tothe RFAs?MR. PENNETTI: Judge, we have a Motion forProtection pending. We asked for a hearing on that.Mr. Grady didn't give us availability. Your firstavailability when I asked for the hearing was actuallyMonday of this week, and I never got a substantiveresponse on that. And then we engaged on a variety ofother motion --THE COURT: So you haven't responded tothe RFAs?MR. PENNETTI: No.And, again, Your Honor, as Ms. Clarkpointed out, those are not standard post-judgment RFAsanyways. They're outside the scope. The scope ofpost-judgment discovery is relevant to the collectionefforts. And most of those, as you'll see, are not.MR. VARGO: Admit that Cyberlux has not 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

28HearingJanuary 16, 2024litigation, and I'm not familiar with it. But if you have -- if fraudulentlytransferred assets, right, and they want to know whatyou own, when you transferred it -- MS. CLARK: Yeah.THE COURT: Misrepresentations that weremade regarding ownership or whatever, yeah, theycould -- that's not necessarily -- I mean, collection isa very broad umbrella, because then he could --potentially a receiver, they could a file fraudulenttransfer claim against somebody else that you may havetransferred assets to that they would need that theywould be entitled to get discovery on those issues inpost-judgment discovery because it's about what youowned -- MS. CLARK: Right.THE COURT: -- and how you may havemisrepresented what you owned or how it was transferredor -- so I don't know that that's necessarily a problem.I think -- so on -- let me see.MS. CLARK: But to the extent that theyare for this dual purpose, Your Honor, or with respectto the substantive operations, the day-to-day operationsof the business, or anything else, that is why we askedfor -- okay. If we're going to go full scope, not 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

31HearingJanuary 16, 2024Virginia matter with all of the other stuff that hasnothing to do with financials. As I stated earlier when I used thehypothetical number of 50 requests and I said 22 of themwere -- let's just call it, don't need to be respondedto, they still could have responded to the 28. They arenot telling us where their assets are.We have an asset right here that's readyto be sold. We're not hearing, It's far sale. Okay?We're not hearing, Why don't we jointly go sell thistogether. You get your judgment payoff and pay us thebalance.We're not hearing any of that. That'swhat we should be hearing.MS. CLARK: Well, Your Honor, as I'vesaid, we have paid this judgment down, from ourperspective, exactly in accordance with the settlementagreement. The parties had litigation. They settledthe litigation. Part of the settlement said, Here's thetotal we agree to settle, and we will pay it out overtime. And we have done that. They don't agree.They didn't like the timing on the payments. And sothey have commenced post-judgment discovery, collectionefforts. They've garnished bank accounts, half a 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

34HearingJanuary 16, 2024amount, but it is nowhere near $1.5 million.THE COURT: So what do you think you owe?MS. CLARK: Let me see, I have it here.Mr. Welter.MR. WELTER: Yes, Judge. Good morning,Judge.THE COURT: Yeah, is --MR. WELTER: Oh, are you asking me, Judge?THE COURT: Are you affiliated -- is heaffiliated with somebody?MR. GRADY: He's the managing director -- MR. WELTER: Yes, Judge.MR. GRADY: -- yes, of the plaintiffs'entity -- plaintiff entities.THE COURT: Okay.MR. WELTER: Can you hear me, Judge?THE COURT: Yes.MR. WELTER: Okay. So, first of all, whenshe talks about the -- when counsel talks about theattorney's fees, that was for the initial litigation,Judge. The $300,000 plus is we are -- under thesettlement agreement, we are entitled to collectattorney's fees in collecting the settlement agreement.I also need to correct counsel. They arenot current on their payments. The reason Mr. Petersen 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

41HearingJanuary 16, 2024MR. WELTER: So on the protective order --and sorry if I'm -- I'm an attorney, as well, Judge, andjust running the business as managing director. But on the protective order, we couldn'tdisagree on it. So we went above and beyond. We saidthat instead of saying -- requiring one party to saythis is confidential, you know, and the other partydisagrees, we said that we would, under Rule 11 of theTexas -- we would agree that we would hold the entiredeposition, everything in the whole deposition,confidential for 30 days, which would give them a chanceto come to your court, Judge, and ask them -- ask you tomake decisions on this, whatever issues they had, andthen any objections that they -- and we also offeredthem, Judge, that if they weren't able to get a hearingbefore the Court within 30 days, we would extend it aslong as they could get a hearing. And it just made it so simple, becausethey're tangling the three separate state litigationstogether. And if we enter a protective order in thiscase, it's going to wind up -- we're not going to beable to admit it in another case, the documents.So the easiest way was we gave them morethan they were asking. And we said the entiredeposition, everything in the deposition, will be held 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

130William Welter - January 16, 2024Cross-Examination by Ms. Clarkreasonably small amount of property that's going to besold that's not going to satisfy the judgment, he needsto absolutely sequester that, keep it safe, and makesure that he has the ability to sell it.Many times things might weigh a lot. Atransport could be crazy. I can tell you personallythat I went to South Texas one time and dealt with 23locomotives. I had to get a special court order out ofHarris County to specifically sequester the property inplace and hold an auction within 48 hours.Well, there was a lot of heavy equipment.It was 2 miles from the border. All types ofcircumstances come up that would require very heightenedauthority. In this instance, that doesn't mean he hasto use it.MS. CLARK: We're not talking about --they identified leasehold rights and stock. We are nottalking about the property that's inside it, which theystate is owned by a subsidiary, we state is owned by thegovernment. So we're talking about stock. We'retalking about leasehold rights. So that's where I havethe issue.THE COURT: Right. Mr. Berleth, you're not going to sellgovernment property, right? 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

133William Welter - January 16, 2024Cross-Examination by Ms. Clarkproperty interests. They deal with the government. Thegovernment may have some interest, and you don't want torun afoul of any of those potential issues. And so I assume you're going to try toclear all that up and make sure you're doing the rightthing as it relates to that kind of property.MR. BERLETH: Correct, Your Honor. I havenot been as successful in this courthouse by beingunreasonable.THE COURT: Again, and some of this isrhetorical; but we're just having this conversation onthe record so there's no misunderstandings. And you --I'm sure you're -- I'm sure this is not anything that isa problem; but just so we're clear, we've had thisdiscussion before and so there's no surprises. And I'msure you'll try to do everything in an appropriate waygoing forward.So with that, I think we're spinning ourwheels a little bit.MS. CLARK: Your Honor, respectfully, I donot want to walk out of this courtroom withoutunderstanding the order with respect to the receiver.Does he have to have a bond? What is the language goingto look like so that I can inform my client, at aminimum, how to get ready for the disruption that is 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

2 Hearing January 16, 2024 1 APPEARANCES 2 Mr. Shawn Grady SBOT NO. 24076411 3 Law Firm of Shawn Grady, PLLC 2100 West Loop South 4 Houston, Texas 77027 Counsel for Plaintiff 5 Mr. Travis Vargas 6 District Clerk Mr. Alex Pennetti 7 SBOT NO. 24110208 THOMPSON COBURN LLP 2100 Ross Avenue Dallas, Texas 75201 9 Counsel for Counsel for Cyberlux Corporation 10 Ms. Katharine Clark SBOT NO. 24046712 11 THOMPSON COBURN LLP 2100 Ross Avenue 12 Dallas, Texas 75201 Counsel for Counsel for Cyberlux Corporation 13 14 15 16 17 Unofficial Copy Office of M 18 19 20 21 22 23 24 25

50HearingJanuary 16, 2024compensated with attorney's fees, I'll award attorney'sfees to the degree that they -- it's post-judgment.They should be complying. They should be giving youstuff. To the degree that you have to spend time,write motions, do that thing, I'm going to awardattorney's fees, right? So you're going to get thatback to the degree you can get any of that back.But we're spending a lot of time talkingabout hypotheticals. Let's see what they do, and thenwe talk about what happens. So I'll go ahead and enterthat order, and then we can move on discovery and thenwe can move on to this other stuff.So the Court -- what are the -- so what'sthe outstanding discovery? So you have your firstrequest, and then you have -- you want to do aninspection, and then you wanted to do depos.MR. GRADY: Yes, Your Honor.THE COURT: What did you want to deal withfirst?MR. GRADY: Depositions.THE COURT: So who are you looking to dodepos of?MR. GRADY: Three witnesses; NeillWhiteley, Phil Tucker, and Mark Schmidt. Mark Schmidt 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

93William Welter - January 16, 2024Direct Examination by Mr. Vargoor important concerning Section 5 on page 18 of 46?A Well, it -- in this section, it details thedifferent companies that are involved with Cyberlux. Ittalks about their -- what is located at each facility.And primarily to Texas, it says, Catalyst Machineworkshas its offices and manufacturing facilities located at21631 Road, Spring, Texas 77488. And then it goes on to say, This is a21,450-foot square-foot facility, with a renewablethree-year lease, with one and a quarter year remaining.Q Is this document a true and correct copy of thedisclosure that you downloaded from the OTC's website?A Yes.Q All right. I see the next paragraph down thererefers to "our Datron World Communications subsidiary." Is that what it says there?MS. CLARK: Your Honor, I object. Thedocument speaks for itself -- A That is correct.MR. CLARK: -- and it's not in evidence,Your Honor.THE COURT: That's fine.MR. VARGO: I move to admit thedisclosure.THE COURT: You're seeking to move what, 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

93William Welter - January 16, 2024Direct Examination by Mr. Vargoor important concerning Section 5 on page 18 of 46?A Well, it -- in this section, it details thedifferent companies that are involved with Cyberlux. Ittalks about their -- what is located at each facility.And primarily to Texas, it says, Catalyst Machineworkshas its offices and manufacturing facilities located at21631 Road, Spring, Texas 77488. And then it goes on to say, This is a21,450-foot square-foot facility, with a renewablethree-year lease, with one and a quarter year remaining.Q Is this document a true and correct copy of thedisclosure that you downloaded from the OTC's website?A Yes.Q All right. I see the next paragraph down thererefers to "our Datron World Communications subsidiary." Is that what it says there?MS. CLARK: Your Honor, I object. Thedocument speaks for itself -- A That is correct.MR. CLARK: -- and it's not in evidence,Your Honor.THE COURT: That's fine.MR. VARGO: I move to admit thedisclosure.THE COURT: You're seeking to move what, 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

2 Hearing January 16, 2024 1 APPEARANCES 2 Mr. Shawn Grady SBOT NO. 24076411 3 Law Firm of Shawn Grady, PLLC 2100 West Loop South 4 Houston, Texas 77027 Counsel for Plaintiff 5 Mr. Travis Vargas 6 District Clerk Mr. Alex Pennetti 7 SBOT NO. 24110208 THOMPSON COBURN LLP 2100 Ross Avenue Dallas, Texas 75201 9 Counsel for Counsel for Cyberlux Corporation 10 Ms. Katharine Clark SBOT NO. 24046712 11 THOMPSON COBURN LLP 2100 Ross Avenue 12 Dallas, Texas 75201 Counsel for Counsel for Cyberlux Corporation 13 14 15 16 17 Unofficial Copy Office of M 18 19 20 21 22 23 24 25

2 Hearing January 16, 2024 1 APPEARANCES 2 Mr. Shawn Grady SBOT NO. 24076411 3 Law Firm of Shawn Grady, PLLC 2100 West Loop South 4 Houston, Texas 77027 Counsel for Plaintiff 5 Mr. Travis Vargas 6 District Clerk Mr. Alex Pennetti 7 SBOT NO. 24110208 THOMPSON COBURN LLP 2100 Ross Avenue Dallas, Texas 75201 9 Counsel for Counsel for Cyberlux Corporation 10 Ms. Katharine Clark SBOT NO. 24046712 11 THOMPSON COBURN LLP 2100 Ross Avenue 12 Dallas, Texas 75201 Counsel for Counsel for Cyberlux Corporation 13 14 15 16 17 Unofficial Copy Office of M 18 19 20 21 22 23 24 25

2 Hearing January 16, 2024 1 APPEARANCES 2 Mr. Shawn Grady SBOT NO. 24076411 3 Law Firm of Shawn Grady, PLLC 2100 West Loop South 4 Houston, Texas 77027 Counsel for Plaintiff 5 Mr. Travis Vargas 6 District Clerk Mr. Alex Pennetti 7 SBOT NO. 24110208 THOMPSON COBURN LLP 2100 Ross Avenue Dallas, Texas 75201 9 Counsel for Counsel for Cyberlux Corporation 10 Ms. Katharine Clark SBOT NO. 24046712 11 THOMPSON COBURN LLP 2100 Ross Avenue 12 Dallas, Texas 75201 Counsel for Counsel for Cyberlux Corporation 13 14 15 16 17 Unofficial Copy Office of M 18 19 20 21 22 23 24 25

86William Welter - January 16, 2024Direct Examination by Mr. VargoIt's not doing that. I'm not sure why. And so I'moutputting what he's saying through the laptop speakers.I think Mr. Welter is getting a little bit of that.We're getting a little bit of reverb. But in any event, let's see if we can makethat work for right now.MR. VARGO: Certainly. Are we ready to proceed?THE COURT: Yes.MR. VARGO: Let's see if we can make itwork.Do we need to swear in the witness?THE COURT: Hold on a second. Let me...(Discussion held off the record)(Witness duly sworn)THE COURT: You may proceed, Counselor.WILLIAM WELTER, having been first duly sworn, testified as follows: DIRECT EXAMINATION BY MR. VARGO: Q Please state your name.A William Welter.Q Mr. Walter, what is your affiliation to thismatter?(Technical difficulties) 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

118William Welter - January 16, 2024Cross-Examination by Ms. ClarkMR. VARGO: I can cut out any duplicativestuff; but, I mean, I would submit that the RFPs thatare attached -- I say "RFPs," the requests for documentsrelated to the debtor that we ordered be produced, thisis, you know, elementary-type stuff. Where are yourbank accounts? What are your assets?THE COURT: Right. And so I understandthere's a continuing obligation and whatnot. That'sfine. Why don't you take a look at that. And you cantake a look at the form.MR. VARGO: I can condense it and cut itdown and obviously send an MS Word to your staff so youcan -- with copy to counsel, of course.MS. CLARK: Your Honor, I really thinkit's important to go through this order. Because thisis an extreme remedy to have a receiver appointed tojust come in and open our mail, change our locks.THE COURT: So is that the plan, or what'sthe plan? And so why don't you introduce yourselffor the record.MR. BERLETH: Your Honor, may I approach?THE COURT: Yes. MR. BERLETH: My name is Robert Berleth.I'm the proposed receiver. I am a member in good 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

137HearingJanuary 16, 2024STATE OF TEXAS COUNTY OF HARRIS I, Jennifer Gajevsky, Official Court Reporter in andfor the 129th District Court of Harris, State ofTexas, do hereby certify that the above andforegoing contains a true and correct transcriptionof all portions of evidence and other proceedingsrequested in writing by counsel for the parties tobe included in this volume of the Reporter's Recordin the above-styled and numbered cause, all of whichoccurred in open court or in chambers and werereported by me.I further certify that this Reporter's Record of theproceedings truly and correctly reflects theexhibits, if any, offered by the respective parties. /s/ Jennifer Gajevsky Jennifer Gajevsky, CSR Texas CSR 9250 Official Court Reporter 129th District Court Harris County, Texas 201 Caroline Houston, Texas 77002 Expiration: 2/2026 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

52HearingJanuary 16, 2024outside the range of the dates we had proposed inJanuary.THE COURT: So I understand he's overseas;but, like, generally, when does he come back? Wheredoes he live? What's the --MS. CLARK: Your Honor, I don't know wherehe lives. I believe that he is on the East Coast. Thecompany is in North Carolina. I believe he lives in oraround that area, but I don't know that. That's acomplete -- I'm just guessing. I don't speak withMr. Schmidt. That's not my client contact.THE COURT: Who's your client contact?MS. CLARK: I speak with their outsidein-house counsel, Mr. Charles Watts. And so I haveaccess to Mr. Watts. I don't know how much access hehas to his schedule immediately, but he could tell methe answers to the questions you're asking.THE COURT: When would you like hisdeposition?MR. GRADY: In the next 30 days,Your Honor. And we would like it in person, as well.MS. CLARK: I just think that's going tobe difficult, but -- I mean, and I don't understand thenecessity, especially given what we've lived throughthrough COVID. A deposition is a deposition, but -- 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

55HearingJanuary 16, 2024imagine why we couldn't find a time and a date in30 days that we can present him. We've been able to dothat each time we've gone out looking for dates.THE COURT: Okay. And let me tablewhether it's in person or not for a moment.Who are the other two folks?MR. GRADY: Neill Whiteley and PhillipTucker.THE COURT: Whiteley. And what's hisrelationship to the case?MR. GRADY: So there's been some confusionor -- you know, we asked opposing counsel, you know,their capacities and were told different things atdifferent times. I've got notes.THE COURT: I'm sorry. Whiteley'srelationship, again, is what?MR. GRADY: Well, we believe that they'reexecutives of Cyberlux and that they're represented bysame counsel over here.THE COURT: Is that true?MS. CLARK: No, Your Honor. AndMr. Pennetti knows the details.MR. PENNETTI: It's been our understandingthey've been consultants. I've conveyed thatconsistently ever since this started. Both of them were 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

1HearingJanuary 16, 2024 REPORTER'S RECORD VOLUME 1 OF 1 VOLUMES TRIAL COURT CAUSE NO. 2024-48085 ATLANTIC WAVE HOLDINGS, ) IN THE DISTRICT COURT LLC AND SECURE COMMUNITY, )LLC )) vs. ) HARRIS COUNTY, TEXAS ) CYBERLUX CORPORATION AND )MARK D. )SCHMIDT, INDIVIDUALLY ) 129TH JUDICIAL DISTRICT _____________________________________________ HEARING _____________________________________________ On the 16TH day of January, 2025, the followingproceedings came on to be held in the above-titledand numbered cause before the Honorable MichaelGomez, Judge Presiding, held in Houston, HarrisCounty, Texas. Proceedings reported by computerized stenotypemachine. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

73HearingJanuary 16, 2024I'm going to put January 29th. For theinspection, by January 29th -- oh, I'm sorry. ByJanuary 22nd.Okay. So we are -- you requested a writof execution. Have you -- have you tried to --MR. GRADY: We got possession of it, and Ibelieve it got FedEx'd to the constable in Spring, youknow, in the jurisdiction of the Spring warehouse. Andso it should be --MR. VARGO: Just say no. MR. GRADY: Huh?MR. VARGO: Just say no. MR. GRADY: What? No?MR. VARGO: No, it hasn't been executed.MR. GRADY: Oh, it hasn't been -- oh, I'msorry. I'm sorry. It hasn't been executed. I'mgetting a little tired. Sorry.THE COURT: Okay. So you have anapplication for turnover after judgment to appointreceiver. We talked a little bit about why before. Soyou have an outstanding -- or you believe an outstandingjudgment debt for about 1.4 million; is that right?MR. GRADY: Yes, Your Honor.THE COURT: Why is it that you need areceiver? 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

72HearingJanuary 16, 2024discussing dates with the other side. They're importantwitnesses; Charles Watts, Chuck Watts, and JimmyRobinson, too. So we -- and that's it. That's all thedepositions. I forgot to mention those. My apologies.THE COURT: That's fine. But you haven'tnoticed them yet, right?MR. GRADY: We have not. We werediscussing dates and trying to arrange it.THE COURT: I'll just see if you folks canwork it out, and then the assumption is that they'llprovide you dates soon. And then you'll find a datewithin the next -- within a reasonable time period. MR. GRADY: Okay.THE COURT: If they don't provide dates,then we can have a conversation about it. But I'll letyou work together first.MR. GRADY: Will do, Your Honor.THE COURT: Okay. Let me go ahead and --how much time did you need to respond to the discoveryrequests?MR. PENNETTI: Judge, may I havetwo weeks?THE COURT: Is that fine? Fourteen days?MR. GRADY: Fourteen days, calender days?THE COURT: Yes. 1 2 3 4 5 6 7 8 910111213141516171819202122232425 UnofficialCopyOfficeofMarilynBurgessDistrictClerk

EXHIBIT 2 UnofficialCopyOfficeofMarilynBurgessDistrictClerk