Forreststream Holdings Limited v. Shenkman

Filing 41

STIPULATATED ORDER FOR INJUNCTIVE RELIEF REGARDING PLEDGE OF EQUITY INTERESTS IN EIS GROUP LTD AND @MOSPHERE, LLC. Signed by Magistrate Judge Laurel Beeler on 7/26/2016. (lsS, COURT STAFF) (Filed on 7/26/2016)

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Roberto J. Kampfner (SBN 179026)
WHITE & CASE LLP
555 South Flower Street, Suite 2700
Los Angeles, CA 90071
Telephone:
[phone]
Facsimile:
[phone]
[e-mail]
Attorneys for Plaintiff
Walter C. Cook (SBN 111330)
LAW OFFICES OF WALTER C. COOK
2995 Woodside Road, #440
Woodside, CA 94062
Telephone:
[phone]
Facsimile:
[phone]
[e-mail]
Attorneys for Defendant

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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FORRESTSTREAM HOLDINGS LIMITED, a
Cyprus company,

Case No. 3:16-cv-01609-LB
STIPULATED ORDER FOR
INJUNCTIVE RELIEF REGARDING
PLEDGE OF EQUITY INTERESTS IN
EIS GROUP LTD AND @MOSPHERE,
LLC

Plaintiff,
v.
GREGORY SHENKMAN (AKA GRIGORY
SHENKMAN), an individual,
Defendant.

Magistrate Judge Laurel Beeler
Action Commenced March 31, 2016

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A hearing was held in the above-captioned action (the “Action”) on July 21, 2016.
Set for hearing on such date was Plaintiff’s Motion for Default Judgment [D.I. 27] (the “Default
Judgment Motion”). On July 20, 2016, Defendant appeared and filed his Motion to Vacate Entry
of Default and to Set Aside Default; Request That Current Hearing Set for Entry of Default
Judgment Be Continued Until After a Hearing on This Motion on the Basis of Judicial Economy
[FRCP 55, FRCP 60] [D.I. 37] (the “Vacate Default Motion”).
At the hearing, the parties agreed to negotiate a stipulated order concerning the pledge

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ORDER APPROVING STIPULATION
CASE No. 3:16-cv-01609-LB

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of Defendant’s direct and indirect right, title and interest in, to and under the capital stock of EIS

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Group ltd (the “EIS Shares”) in favor of Plaintiff to maintain the status quo pending resolution of

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this Action. The Parties have negotiated the terms of a stipulated order, as set forth below.

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The Court has reviewed this Order and, based on the agreement of the Parties, and good
cause appearing therefor, the Court hereby orders as follows:
ORDER
ORDERED, Defendant hereby grants to Forreststream a security interest in all of his right,

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title and interest in, to and under all of his EIS Shares to secure performance of Defendant’s

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obligations to Forreststream, as determined in this Action; and it is further

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ORDERED, that Defendant hereby grants to Forreststream a security interest in all of his

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right, title and interest in, to and under all of his membership interests (the “@mosphere

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Interests”) in @mosphere, LLC, (“@mosphere”), to secure performance of Defendant’s

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obligations to Forreststream, as determined in this Action; and it is further

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ORDERED, that Defendant shall instruct and/or direct, as the case may be, to the fullest

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extent possible under the @mosphere operating agreement and other corporate documents

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(including by taking all limited liability company actions within his power necessary to cause)

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@mosphere to pledge within ten (10) days of the entry of this Order to Forreststream all of its right,

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title and interest in and to the shares of EIS Stock that it holds for Defendant to secure performance

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of Defendant’s obligations to Forreststream, as determined in this Action; and it is further

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ORDERED, that absent further order of the Court, Defendant shall not and is hereby

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expressly enjoined from transferring, assigning, pledging, hypothecating, encumbering, or

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otherwise impairing his direct or indirect interest in the EIS Shares and @mosphere Interests.

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Further, Defendant shall take all actions required to assure that @mosphere does not transfer,

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assign, pledge, hypothecate, encumber, or otherwise impair his indirect interest in the EIS Shares

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held by @mosphere for his benefit; and it is further

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ORDERED, that within three (3) business days of entry of this Order Defendant shall do all

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of the following: (a)(i) inform @mosphere that his interest in the @mosphere Interests has been

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pledged pursuant to this Order, and (ii) instruct @mosphere to record such pledge in its books and
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ORDER APPROVING STIPULATION
CASE No. 3:16-cv-01609-LB

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records, and (b)(i) inform EIS Group ltd that his interest and the interest of @mosphere in the EIS

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Shares has been pledged to Forreststream under the terms of this Order, and (ii) instruct EIS Group

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ltd. to record such pledge in its books and records; and it is further

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ORDERED, that absent further order of the Court, Forreststream shall exercise no secured

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creditor remedies in respect of the pledge of the @mosphere Interests or the EIS Shares set forth

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herein. For the avoidance of doubt, nothing herein shall constrain Forreststream in the prosecution

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of this Action nor in seeking to perfect, maintain, or otherwise protect the security interest granted

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pursuant to this Order; and it is further

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ORDERED, that the Vacate Default Motion shall be heard on August 11, 2016 at 9:30 a.m.

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before the Court and that, if the Vacate Default Motion is denied, the Default Judgment Motion

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shall be heard immediately thereafter; and it is further

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ORDERED, that Defendant shall file any further declarations and/or supporting arguments

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or authorities in support of his Vacate Default Motion by Wednesday July 27, 2016; that Plaintiff

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shall file its opposing papers and declarations by Monday August 8, 2016, that Defendant shall file

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his reply, if any, by August 10, 2016.

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ORDERED, that the Court shall maintain jurisdiction to enforce the terms of this Order.
IT IS SO ORDERED

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July 26, 2016
Date: _____________________

___________________________________
Magistrate Judge Laurel Beeler
U.S. District Court, Northern District of
California

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ORDER APPROVING STIPULATION
CASE No. 3:16-cv-01609-LB

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ACKNOWLEDGED AND AGREED:

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WHITE & CASE LLP

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By:

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/s/ Roberto J. Kampfner
Roberto J. Kampfner
Attorneys for Plaintiff

LAW OFFICES OF WALTER C. COOK

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By:

/s/ Walter C. Cook
Walter C. Cook
Attorneys for Defendant

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Pursuant to Civil L.R. 5-1(i)(3), I, Roberto J. Kampfner, attest that Walter Cook authorized me to

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electronically sign his name and file the above Stipulation via email received on July 25, 2016 at

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12:17 pm.

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By:

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/s/ Roberto J. Kampfner

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ORDER APPROVING STIPULATION
CASE No. 3:16-cv-01609-LB