FILED: NEW YORK COUNTY CLERK 11/16/2016 05:46 PM INDEX NO. 652110/2016 NYSCEF DOC. NO. 53 RECEIVED NYSCEF: 11/16/2016 EXHIBIT 5
GRANTED EFiled: Sep 11 2014 03:48PM EDT Transaction ID 56020137 Case No. 9226-ML IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE TRILLION GROWTH CHINA, LP, v. Plaintiff, C.A. No. 9226-ML NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC., Defendant. ORDER GRANTING MOTION FOR CONTEMPT AND APPOINTING RECEIVER WHEREAS, Plaintiff Trillion Growth China LP s ( Plaintiff ) Section 220 Pre-Trial Brief moved this Court for a default judgment against NIVS Intellimedia Technology Group, Inc. ( NIVS or the Company ) compelling NIVS to turnover its books and records and seeking an award of Plaintiffs attorneys costs and fees; WHEREAS, on March 11, 2014 this Court entered an order granting Plaintiff s request for a default judgment against NIVS (the Order Granting Default Judgment ); WHEREAS, the Order Granting Default Judgment required NIVS to turnover its books and records to Plaintiff by March 25, 2014 and pay Plaintiff s attorneys costs and fees by March 31, 2014;
WHEREAS, Plaintiffs subsequently moved this Court to hold NIVS in contempt for failing to comply with the Order Granting Default Judgment; WHEREAS, Plaintiffs Motion for Contempt (the Motion ) sought the following relief: (i) the appointment of a receiver pursuant to 8 Del. C. 322; (ii) an option to put their shares in NIVS; and, (iii) an award of attorneys fees and costs; WHEREAS, this Court has reviewed the affidavits of Rachael Kierych, Esq. and Jonathan M. Stemerman, Esq. submitted by Plaintiffs (collectively, the Fee Affidavits ) in support of an award of reasonable attorneys fees and costs in connection with the Motion; WHEREAS, following a hearing on September 9, 2014, Plaintiff s Motion is GRANTED; NOW, THEREFORE, IT IS HEREBY ORDERED this day of September, 2014 as follows: PUT OPTION 1. Plaintiff is granted the option to put its shares in NIVS at at fair market value to be determined at an evidentiary hearing to be held on November 5, 2014 at 10:00 a.m. in Wilmington, Delaware; and ATTORNEYS COSTS AND FEES 2. NIVS is required to pay Plaintiff s fees and costs in connection with the 2
Motion and costs to be incurred in connection with enforcement of the Court s orders.judgment is therefore entered against defendant NIVS as set forth below reflecting the reasonable attorneys fees and costs associated with the Contempt Motion as set forth in the Fee Affidavits: a. $ 29,979.50 in attorneys fees and $304.00 in costs, for a total of $30,283.50 is hereby awarded for the attorneys fees and costs incurred by Anderson Kill, P.C. from March 7, 2014 through September 8, 2014; and b. $6,105.00 in attorneys fees and $840.10 in costs, for a total of $6,945.01 is hereby awarded for the attorneys fees and costs incurred by Elliott Greenleaf from March 7, 2014 through September 8, 2014. Post-judgment interest is awarded at the legal rate from the date of this Order until the date of satisfaction.; and APPOINTMENT OF A RECEIVER 3. The Court hereby appoints a receiver (the Receiver ) pursuant to 8 Del. C. 322 for the purpose of enforcing NIVS s compliance with this Court s orders; a) APPOINTMENT OF RECEIVER: Pursuant to 8 Del. C. 322, Robert W. Seiden, Esq. is hereby appointed Receiver of the Company with the powers and duties specified in this Order. 3
b) ACCEPTANCE AND TERM OF APPOINTMENT: The Receiver shall submit to the Court a written acceptance of this appointment. The Receiver shall serve at the pleasure of the Court, and the provisions of this Order shall remain in effect pending further Order of the Court. c) PURPOSES OF APPOINTMENT; GENERAL POWERS: The Receiver shall take all actions he deems appropriate to obtain NIVS s compliance with the following orders of this Court (i) the Order Granting Default Judgment, (ii) Order Granting Plaintiff s Motion for Contempt, (iii) this Order, and (iv) such other and further orders the Court may enter in this action. Without limiting the foregoing, the Receiver shall take all appropriate action to ensure NIVS s compliance with its obligation to reimburse Plaintiff s attorneys fees and expenses and NIVS s obligation to pay Plaintiff fair market value, to be determined at a hearing held before this Court, for each NIVS share for which the Plaintiff seeks redemption. The Receiver shall have all powers generally available to a receiver appointed pursuant to 8 Del. C. 291 & 322, unless any such power would be inconsistent with a specific provision of this Order, in which case this Order shall govern. Upon the acceptance of this appointment, the Receiver shall have full authority and control over the property and/or assets of the Company, of whatever kind and wherever located, in the United States of America, the People s Republic 4
of China or elsewhere. This includes, without limitation, authority to seize, deal in or dispose of any property of the Company. The Receiver shall have full and unrestricted access to all books and records of the Company, in whatever mode maintained and wherever located, in the United States of America, the People s Republic of China or elsewhere. The Receiver may assert sole control over any present bank or other accounts of the Company and/or establish signature authority over such accounts as the Receiver deems appropriate. The Receiver shall have the power to commence, continue, join in, and/or control any action, suit or proceeding, of any kind or nature, in the name of the Company or otherwise, including without limitation proceedings to prevent or avoid transactions of any kind or nature that may hinder the Company s compliance with this Court s orders. The Receiver is authorized, in his sole discretion, to enlist the help of the employees or agents of the Company. The directors, officers, employees, and agents of the Company shall cooperate with the Receiver in the performance of his duties. The Receiver is authorized, in his sole discretion, to enlist the help of agents, employees or representatives of the governments of the United States of America, the People s Republic of China, or any other nation, or of any regional or local governments therein, or of any other regulatory body. The Receiver shall have the authority, but shall not be required, to petition this Court for instructions at any time or from time to time. 5
The Receiver is authorized to exercise all power and authority that NIVS possess with respect to its wholly owned subsidiaries by virtue of its ownership of those entities, including but not limited to: (i) exercising voting rights associated with shares or equity interests in such wholly owned subsidiaries and; (ii) utilizing such voting power to replace members of the boards of directors or similar governing body of such subsidiaries. With respect to entities that are indirect wholly owned subsidiaries of the Company, the Receiver is authorized to exercise all power and authority that the Company possesses over its indirect wholly owned subsidiaries by virtue of its ownership of intervening entities, including but not limited to: (i) causing any wholly owned subsidiary or indirect wholly owned subsidiary to exercise voting rights associated with share or equity interest in a lower-tier subsidiary; and (ii) utilizing such voting power to replace members of the board of directors or similar governing body of the lower-tier subsidiary. The Receiver is authorized to exercise all power and authority that the Company would have to seek judicial relief with respect to its wholly owned subsidiaries or indirect wholly owned subsidiaries, including but not limited to petitioning for a Court-appointed receiver or similar official for such entities. 6
With respect to any non-wholly owned subsidiary, the Receiver is authorized to exercise any rights that the Company may have by virtue of its ownership of shares or other equity interest in such non-wholly owned subsidiary. d) AUTHORITY TO RETAIN ADVISORS: The Receiver is authorized to retain one or more experts or advisors, including financial advisors, professional sales agencies, accountants, attorneys, brokers, and other professionals as the Receiver deems necessary in carrying out his duties. Without limiting the foregoing, the Receiver is specifically authorized to retain as counsel Anderson Kill P.C. and Elliott Greenleaf. e) COMPENSATION OF THE RECEIVER AND ANY PROFESSIONALS: The Company shall pay the compensation and expenses of the Receiver at his customary hourly rate. All professionals retained by the Receiver shall submit invoices to the Receiver. The Receiver shall petition the Court on a monthly basis, or at such other interval as the Court may direct, for approval of the fees and expenses incurred by the Receiver and his advisors. All fees and expenses approved by the Court shall be paid promptly by the Company. Payment of the fees and expenses of the Receiver and any experts or advisors retained by the Receiver shall have priority over all other obligations, payments or distributions of the Company. Upon any failure by the Company to pay fees and expenses duly approved by the Court, the Receiver shall have full authority and 7
control over the property and/or assets of the Company, of whatever kind and wherever located, for the purposes of satisfying the payment of such fees and expenses. The Receiver may seek further relief from the Court with respect to any non-payment of expenses. f) AUTHORITY TO ACT: The Receiver is authorized to act through and in the name of the Company to carry out his duties. The Receiver is authorized to execute and deliver (or cause to be executed and delivered) any document in the name of the Company, including but not limited to contracts, deeds, other documents of title, and regulatory, administrative and governmental filings. g) WAIVER OF DUTIES AND BOND; MONTHLY REPORTS: The provisions of Court of Chancery Rules 149-168, pertaining to the duties of a receiver and/or trustee, are hereby waived. The Receiver shall not be required to post a bond. In lieu of these provisions, the Receiver shall provide interim reports to the Court at monthly intervals from the date of this Order. Such monthly reports shall include a statement of (i) the Receiver s activities during the preceding month; (ii) a statement of the fees and expenses for which the Receiver seeks payment that were incurred during the preceding month; and (iii) such other information as the Receiver deems appropriate or as the Court may direct. 8
h) COOPERATION: The appointment of the Receiver hereunder is binding upon the directors, officers, employees, agents and stockholders of the Company, who shall cooperate with the Receiver in the performance of his duties. Neither the Company, nor person acting or purporting to act on behalf of the Company, nor any director, officer, employee, agent, stockholder or creditor of the Company shall institute any proceeding in any forum other than this Court challenging any action, recommendation or decision by the Receiver. i) EXCULPATION, INDEMNIFICATION, AND ADVANCEMENT: The Receiver, and anyone acting on his behalf, shall have no liability to the Company, its stockholders or any other person for actions taken in good faith pursuant to this Order. The Receiver shall be entitled to all protection, limitation from liability, and immunity available at law or in equity to a courtappointed Receiver including, without limitation, all protection, limitation from liability, and immunity to the fullest extent permitted by applicable law. Expenses, including attorneys fees, incurred by the Receiver in defending any civil, criminal, administrative or investigative action, suit, or proceeding arising by reason of or in connection with the Receiver s designation as Receiver for the Company, or in the performance of his duties hereunder, shall be paid by the Company in advance of the final disposition of such action, suit, or proceeding subject to the repayment of 9
such amount if it shall ultimately be determined by this Court that the Receiver is not permitted to be indemnified by the Company under applicable Delaware law. j) OBJECTIONS TO AND REVIEW OF RECEIVER S INTERIM ACTIONS, AND STANDARD OF REVIEW: All actions of the Receiver shall be presumed to have been made on an informed basis, in good faith, and in the honest belief that such actions taken appropriate to ensure NIVS s compliance with this Court s orders. All interim actions shall be subject to review and reversal by the Court only upon a showing that the Receiver abused his discretion. k) JURISDICTION: The Court shall retain jurisdiction to interpret, construe and enforce this Order and any such other or further orders of this Court. NOTICE 4. Plaintiff shall serve NIVS with a copy of this Order by September 19, 2014. Master in Chancery Abigail M. LeGrow 10
Court: DE Court of Chancery Civil Action Judge: Abigail LeGrow File & Serve Transaction ID: 56013765 Current Date: Sep 11, 2014 Case Number: 9226-ML Case Name: CLOSED Trillion Growth China LP vs Nivs IntelliMedia Technology Group Inc /s/ Judge LeGrow, Abigail
GRANTED EFiled: Nov 13 2014 04:48PM EST Transaction ID 56336077 Case No. 9226-ML IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE TRILLION GROWTH CHINA, LP, v. Plaintiff, C.A. No. 9226-ML NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC., Defendant. ORDER SETTING VALUE OF DEFENDANT S SHARES FOR PURPOSES OF PLAINTIFF S PUT RIGHT WHEREAS, on September 11, 2014, this Court entered an Order Granting Motion for Contempt and Appointing Receiver (the Contempt Order ); WHEREAS, among other things, the Contempt Order held Defendant NIVS Intellimedia Technology Group, Inc. ( NIVS ) in contempt of this Court s previous orders in this action, granted Plaintiff the option to put its shares in NIVS at fair market value (the Put Right ), scheduled a valuation hearing (the Valuation Hearing ) to determine the fair market value of NIVS s shares; and awarded Plaintiff s its fees and costs incurred from March 7, 2014 through September 9, 2014; 1
WHEREAS, the Plaintiff served the Contempt Order on NIVS via its registered agent for service of process in Delaware on September 12, 2014; WHEREAS, the Valuation Hearing took place on November 5, 2014 in Wilmington, Delaware and NIVS failed to appear or otherwise respond; WHEREAS, the Court heard testimony from Philip Groves of DAC Management, LLC as to the fair market value of NIVS shares; WHEREAS, the Court qualified Mr. Groves as an expert on valuations of businesses based in China; WHEREAS, Mr. Groves testified that, in his expert opinion, the fair market value of NIVS shares is $21.37 per share; WHEREAS, Plainitff s counsel has filed affidavits in support of their fees and expenses incurred since September 8, 2014; NOW THEREFORE, this day of November, 2014, the Court having considered testimony of Mr. Groves, the affidavits of Jonathan M. Stemerman, Esq., Rachael Kierych, Esq. and Philip Groves in support of Plaintiff s fees and expenses incurred since September 8, 2014 (collectively, the Fee Affidavits ), and having afforded NIVS the opportunity to appear in these proceedings; IT IS HEREBY ORDERED that: 2
1. For purposes of setting a value of NIVS stock pursuant to the Contempt Order, the Court finds that the fair market value of NIVS stock is $21.37 per share. 2. The price payable to Plaintiff s Put Right is therefore $21.37 per share. 3. NIVS is required to pay Plaintiff s fees and costs in connection with the Valuation Hearing and costs to be incurred in connection with enforcement of the Court s orders. Judgment is therefore entered against defendant NIVS as set forth below reflecting the reasonable attorneys fees and costs associated with the Valuation as set forth in the Fee Affidavits: a. $7,851.00 in attorneys fees and $327.89 in costs, for a total of $8,178.89 is hereby awarded for the attorneys fees and costs incurred by Anderson Kill, P.C. from September 10, 2014 through November 5, 2014 (the Anderson Kill Fees ); b. $2,917.50 in attorneys fees and $744.51 in costs, for a total of $3,662.01 is hereby awarded for the attorneys fees and costs incurred by Elliott Greenleaf from September 10, 2014 through November 5, 2014 (the Elliott Greenleaf Fees ); and 3
c. $10,750 in fees is hereby awarded for the fees incurred by DAC Management, LLC from October 6, 2014 to November 5, 2014 (the DAC Fees ) 4. Post-judgment interest on the Anderson Kill Fees, Elliott Greenleaf Fees and DAC Fees is awarded at the legal rate from the date of this Order until the date of satisfaction. Master in Chancery Abigail M. LeGrow 4
Court: DE Court of Chancery Civil Action Judge: Abigail LeGrow File & Serve Transaction ID: 56331996 Current Date: Nov 13, 2014 Case Number: 9226-ML Case Name: CLOSED Trillion Growth China LP vs Nivs IntelliMedia Technology Group Inc /s/ Judge LeGrow, Abigail