Preview
Pursuant to CRC 2.259 this document has been electronically filed by the NB
Superior Court of California, County of Santa Barbara, on 6/26/2023
FILED
Marshall J. Hogan (#286147) SUPERIOR COURT of CALIFORNIA
mhogan@swlaw.com COUNTY of SANTA BARBARA
Andrew B Still (#312444) 06/28/2023
astill@swlaw.com Darrel E. Parker, Executive Officer
SNELL & WILMER L.L.P. BY Chavez, Terri
600 Anton Boulevard, Suite 1400 Deputy Clerk
Costa Mesa, CA 92626-7689
Telephone: 714.427.7000
Facsimile: 714.427.7799
Bryce A. Suzuki (pro hac vice forthcoming)
bsuzuki@swlaw.com
SNELL & WILMER L.L.P.
One East Washington Street, Suite 2700
Phoenix, AZ 85004
Telephone: 602.382.6000
Facsimile: 602.382.6070
10 Attorneys for Plaintiff
EAST WEST BANK
11
12
SUPERIOR COURT OF THE STATE OF CALIFORNIA
13
14 COUNTY OF SANTA BARBARA- SOUTH COUNTY DIVISION
15
16 EAST WEST BANK, a California state CASE NO. 23CV02629
banking corporation,
17 Assigned to: Hon. Colleen K. Stern
Plaintiff,
18 [PkaeiaeodeeieO RDER
eos
19 (1) APPROVING STIPULATION FOR
HERBL, INC., a California corporation, APPOPINTMENT OF RECEIVER;
20 dba HERBL, HERBL DISTRIBUTION
SOLUTIONS, and HDS NATURALS, (2) APPOINTING RECEIVER; AND
21
Defendant. (3) ISSUING PRELIMINARY
22 INJUNCTION
23 Hearing Information:
Date: June 28, 2023
24 Time: 8:30 A.M.
Dept.:5
25
Complaint Filed: June 20, 2023
26
27
28
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
1871-1287-1263.6
The Court, having considered (i) the Complaint filed by Plaintiff East West Bank
(“Plaintiff”), (ii) the Stipulation for Appointment of Receiver and Issuance of Preliminary
Injunction (“Stipulation”); (iii) the Nomination of Kevin Singer as Receiver; and (iv) the Oath of
Receiver; and good cause appearing, makes and enters the following Order:
IT IS ORDERED that the Stipulation is granted.
RECEIVER’S APPOINTMENT AND DUTIES
IT IS FURTHER ORDERED that:
1 Kevin Singer shall be and is appointed as Receiver (“Receiver”) of defendant
HERBL, Inc. (“Defendant”) and all the assets of Defendant (collectively, the “Receivership
10 Estate”), with the full power of a general equity receiver.
11 2. Upon the entry ofthis Order, and because the Receiver has already filed his Oath
12 of Receiver, the Receiver shall be vested with all the powers and responsibilities of a general
13 equity receiver as provided by law to receivers and as specifically set forth herein.
14 3 The Receiver is authorized and directed to perform the following duties:
15 a. Take possession, custody and control of the Receivership Estate.
16 b Assume full control of Defendant, including by removing, as the Receiver
17 deems necessary or advisable, any director, officer, manager, independent contractor, employee,
18 or agent of any Defendant, from control of, management of, or participation in, the affairs of
19 Defendant.
20 c. Acquire from Defendant, its members, officers, managers, accountants,
21 managing members, and agents, all keys, contracts, agreements, all books and records, books of
22 account, ledgers, operating statement, budgets, all banking records, tax bills wherever located,
23 applicable to the Receivership Estate, documentation pertaining to all contracts, completed or in
24 progress, all lease and/or rental agreements, leasehold interests, and all documents, records and
25 accounts pertaining to the operation, development, and operation of Defendant and the
26 Receivership Estate, expressly including, but not be limited to, all information contained on
27 computers and any and all software relating thereto, including any and all passwords, usernames,
28 security questions to access any systems or online portals or accounts necessary to operate or
-2-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
administer the business and/or any of the Receivership Estate.
d. Notify the United States Post Office or other mail depository of this Order
and instruct it to divert mail to the Receiver;
e. Notify applicable local, state and federal taxing authorities of the
commencement of the receivership and communicate with said authorities on behalf
of the
Receivership Estate.
f. Open one or more bank accounts for the deposit of assets subject to the
receivership, deposit all assets collected in such designated account(s) and, make all payments
and disbursements from the Receivership Estate from such account(s).
10 g Subject to an operating budget reasonably acceptable to Plaintiff, continue
11 to conduct the business, or cease operation of the business, of Defendants in such manner, and to
12 such extent, and for such duration as Receiver may in good faith deem to be necessary or
13 appropriate to operate the businesses profitably and lawfully, if at all.
ak 14 h Terminate or, subject to an operating budget reasonably acceptable to
15 Plaintiff, retain existing employees or related parties in order to continue any business operations,
16 and in case of such retention, all payroll taxes, workers’ compensation insurance, and related
17 costs will be carried and reported as those of Defendant or such related parties, and not of the
18 Receivership Estate.
19 1 Demand, receive, take control of, and collect all income, rents, issues,
20 profits, proceeds, sales, and all other monies arising from assets of the Receivership Estate,
21 including but not limited to, cash, bank accounts, funds in safety deposit boxes, funds in safes,
22 accounts receivable, monies, checks, drafts, securities, letters of credit and any tangible and
23 intangible pledges as security for the letters of credit; collect debts and compromise same; and
24 take any action respecting assets of the Receivership Estate which the Court may authorize. The
25 Receiver shall have the authority to change signatures to the Receiver on signature cards for
26 existing accounts, and to transfer existing accounts, or funds in existing accounts, into account(s)
27 established by the Receiver. Receiver shall have the authority to receive and endorse checks
28 constituting income from the Receivership Estate.
-3-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
J Instruct any individuals making payments to Defendant to instead make all
payments to Receiver.
k Subject to an operating budget reasonably acceptable to Plaintiff, enter into
contracts and purchase insurance as the Receiver reasonably deems necessary. If the Receivership
Estate has insufficient funds to purchase adequate insurance coverage for the Receivership Estate,
funds may be supplied by Plaintiff, or Receiver will seek instructions from the Court with respect
to whether insurance will be obtained and how it is to be paid for. Consistent with existing law,
the Receiver shall not be responsible for claims or damages arising from not procuring or inability
to obtain insurance.
10 L Subject to an operating budget reasonably acceptable to Plaintiff, obtain
11 and pay for any licenses or permits that the Receiver reasonably believes to be necessary for
12 operation of the Receivership Estate. The Receiver is authorized to assume and utilize and pre-
13 existing licenses or permits, including without limitation licenses governed by the California
ak 14 Department of Cannabis Control, subject to applicable regulations and requirements. This Order
15 shall constitute sufficient documentation under section 15024(b)(4) of Article 3, Division 19 of
16 Title 4 of the California Code of Regulations to show that the Defendant is incapable of
17 performing the duties associated with any license issued under the Medicinal and Adult-Use
18 Cannabis Regulation and Safety Act throughout the term of the receivership. The Receiver may
19 also enter into agreements with local and state government to use or extend licenses, permits, or
20 other authorizations currently in place with respect to the Receivership Estate.
21 m, Subject to an operating budget reasonably acceptable to Plaintiff, incur
22 expenses as Receiver deems advisable or necessary for the care, preservation, and maintenance of
23 the Receivership Estate.
24 nN. Maintain accurate records of all receipts and expenditures that the Receiver
25 makes.
26 oO Choose, engage, and employ agents, employees, attorneys, accountants,
27 appraisers, property managers, and other independent contractors and technical specialists as
28 Receiver deems advisable or necessary in the performance of duties and responsibilities under the
-4-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
authority granted by this Order. Subject to an operating budget reasonably acceptable to Plaintiff,
Receiver shall be permitted to pay such individuals out of funds that come into his possession as
Receiver to administer the Receivership Estate. Any liability arising therefrom shall be the sole
risk and obligation of the Receivership Estate, and not the personal liability of the Receiver.
P. Do all things and incur the risks and obligations in managing assets of the
Receivership Estate as ordinarily incurred by owners, managers, and operators of similar assets;
provided, however, that no such risk or obligation so incurred shall be the personal risk or
obligation of Receiver, but shall be the risk and obligation of the Receivership Estate.
q Subject to Plaintiff's reasonable approval and paragraph 3.x., infra, sell any
10 assets of the Receivership Estate in Receiver’s possession on a commercially reasonable basis.
11 fr. Use any tax identification or social security numbers previously used in
12 collection with the operation of assets or documents ofthe Receivership Estate. For the avoidance
13 of doubt, the Receiver may use the State and Federal taxpayer identification numbers of
ak 14 Defendant in connection with all accounts and accounting for the Receivership Estate.
15 S. Issue subpoenas and conduct and participate in discovery, take depositions,
16 pursue contempt actions, and otherwise pursue all remedies available on behalf of the
17 Receivership Estate and/or to ensure compliance with Receiver’s authority granted herein.
18 t Cooperate with reasonable requests for information or assistance from
19 applicable law enforcement agencies.
20 u Institute, adjust, appear in, intervene in, defend, or compromise or
21 otherwise dispose of legal actions in state, federal, or foreign courts or arbitration proceedings as
22 the Receiver deems necessary or advisable to recover, protect, maintain, or sell assets of the
23 Receivership Estate, or that the Receiver deems necessary or advisable to carry out the Receiver’s
24 mandate under this Order, including, but not limited to, actions challenging fraudulent or voidable
25 transfers.
26 Vv. Exercise any power authorized by statute or ordered by the Court.
27 Ww. Apply to this Court, at any time, for further or other instructions or orders
28 or for additional or other powers necessary to enable Receiver to properly perform his duties.
-5-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
x. Market for sale, and subject to notice to all parties and with the consent of
the Court, sell all, or substantially all, of the receivership assets, including the Defendant’s
business as a going concern, execute all documents required for such sale, and undertake any and
all duties required to effectuate such sale. All applications for approval of such sale, or any other
sale of assets with a proposed purchase price of more than $250,000, shall be brought before this
Court by the Receiver on noticed motion or if time does not allow, by ex parte notice to all
parties. Where such application is brought on ex parte notice, all parties shall, unless the Court
indicates otherwise, have seven (7) calendar days within which they may file objections together
with supporting evidence as to the price or terms of such sale, in which case the Court may either
10 order further briefing, and/or set a hearing for further argument or rule on the pleadings then on
11 file. Ifno objection is filed within said seven (7) day time period to any ex parte application, the
12 Court will conclude that there is no opposition to the Receiver’s application.
13 y Upon a sale of assets pursuant to the immediately preceding paragraph, the
14 Receiver shall disburse, or if appropriate, instruct escrow to distribute all net funds resulting from
15 said sale(s) as follows:
16 @) First to the payment of all fees and expenses incurred by the
17 Receiver and its professionals in managing the Receivership Estate;
18 (i) Second to the expenses of administering the receivership;
19 (iii) Third to the payment of Plaintiffs claim;
20 (iv) Fourth to the payment of any taxes which, if not paid, would form
21 the basis for a lien on the Receivership Estate; and
22 (vy) The remainder to be held by the Receiver until further order ofthis
23 Court in an interest-bearing segregated account with all liens attaching to those
24 funds in the priority in which they are entitled to be paid. However, the Receiver,
25 at any time, may use these segregated funds to pay any taxes, fines, fees or other
26 governmental agency costs or assessments attributable to the Property as they
27 become due.
28 All expenses of the operation of Defendant’s business are the risk of the
-6-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
Receivership Estate and not the personal obligation of the Receiver.
5 A conformed copy of this Order shall be as good as a certified copy for the
Receiver’s purposes oftaking possession and control of Defendant’s business and the assets and
documents subject to this order.
PRELIMINARY INJUNCTION, REQUIRED COOPERATION, AND
STAY OF ACTIONS
IT IS FURTHER ORDERED that:
6 Defendant and its agents, partners, joint venturers, property managers, officers,
employees, assignees, successors, attorneys, representatives, and all persons acting under, in
10 concert with, or for them, and all other persons in possession, custody, or control of any
11 documents or assets of Defendant, who have actual or constructive notice of this order and their
12 agents and employees, shall not:
s
13 a. Commit or permit any waste of the assets or any part thereof, or suffer or
14 commit or permit any act or any part thereof in violation of law, or remove, transfer, encumber or
15 otherwise dispose of any of Defendant’s assets or other property of the Receivership Estate or any
16 part thereof.
17 b Demand, collect, receive, discount or in any other way divert or use any of
18 the monies or accounts receivable of the Defendant or the Receivership Estate.
19 c. Excuse any debts owed to Defendant.
20 d. Directly or indirectly interfere in any manner with the discharge of the
21 Receiver’s duties under this Order or the Receiver’s possession of and operation or management
22 of the Defendant’s assets and the Receivership Estate.
23 ¢€. Expend, disburse, transfer, assign, sell, convey, devise, pledge, mortgage,
24 create a security interest in, encumber, foreclose, conceal or in any manner whatsoever deal in or
25 dispose of the whole or any part of the assets of the Defendant’s assets or the Receivership Estate.
26 f. Terminate or otherwise affect any of the contracts or utilities that service
27 the Receivership Estate.
28 g Destroy, secrete, deface, transfer, or otherwise alter or dispose of any assets
-7-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
or documents subject to the receivership, including, but not limited to, scripts, telephone call logs,
audio or visual recordings, correspondence, computer records, websites, other data compilations,
electronically-stored records, books, records, accounts, writings, drawings, graphs, charts,
photographs, or any other papers or electronic data of any kind or nature.
h Fail to notify the Receiver of any assets subject to the receivership, or to
provide any assistance or information requested by the Receiver in connection with obtaining
possession, custody, or control of such assets.
1 Take any act which will, or would tend to, materially impair, defeat, divert,
prevent or prejudice the preservation of the assets of the Defendant or the Receivership Estate.
10 7 Defendant and its agents, officers and employees and all persons acting under, in
11 concert with, or for it, shall cooperate with and assist the Receiver with respect to his possession
12 of and operation or management of the Defendant’s assets and documents subject to the
13 receivership, and shall relinquish and turn over immediately, possession to the Receiver, all assets
ak 14 comprising the Receivership Estate, both real and personal property, tangible and intangible
15 property including but not limited to electronic files and records, including, without limitation, all
16 documentation, records, and information set forth in Paragraph 3.c above, and any other
17 documentation, records, and information pertaining to the Receivership Estate reasonably
18 requested by the Receiver.
19 8 All monies, funds, cash, certificates of deposit (CDs) and other fungible assets
20 which are received, or have been received, by Defendant, its agents, servants, employees or
21 representatives, or any persons or entities acting under or in concert with Defendant, shall be
22 turned over to the Receiver within forty-eight (48) hours ofthe date that this order is served on
23 Defendant, and that Defendant shall simultaneously, upon said turnover, deliver to the Receiver
24 written verification of the source of all said monies being turned over.
25 9. Defendant shall turn over to the Receiver and direct all other third parties in
26 possession thereofto turn over all keys, leases, books, records, books of account, ledgers,
27 operating statements, budgets, any and all passwords, usernames, security questions to access any
28 systems, electronic or online portals or accounts necessary to operate the business, and all other
-8-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
Receivership Estate records relating to the Receivership Estate, wherever located, and in
whatever mode maintained, including information stored electronically or contained on
computers and any and all software relating thereto as well as all banking records, statements and
cancelled checks.
10. Defendant shall turn over to the Receiver, all documents which pertain to all
licenses, permits and any local, State and Federal government approvals relating to its business,
and shall immediately advise the Receiver of their Federal Taxpayer Identification Number used
in connection with the operation of the business which the Receiver is authorized to use in
connection with the administration of the Receivership Estate.
10 11. With respect to any existing insurance coverage, Defendant shall immediately
11 instruct its insurance company(ies) or agent(s) to name the Receiver as additional insured on all
12 insurance policies covering the Receivership Estate or the Defendant’s employees and/or the
13 Receiver and his agents including property managers and employees who are working with the
ak 14 Receivership Estate for the period that the Receiver is in possession and/or control of the
15 Receivership Estate.
16 12. The Plaintiff and its officers, employees, attorneys and agents shall have access to
17 inspect the Receivership Estate and the monies (upon reasonable advance notice to the Receiver)
18 to enable them to review the same from time to time during the pendency of this Receivership.
19 13. Upon service of a copy of this Order, all banks, broker-dealers, savings and loans,
20 escrow agents, title companies, commodity trading companies, or other financial institutions shall
21 cooperate with all reasonable requests of the Receiver or his agents relating to implementation of
22 this order, including transferring funds at his direction and producing records related to the assets
23 of the Receivership.
24 14. Except by leave of this Court, during pendency of the receivership ordered herein,
25 Defendant and all clients, vendors, and creditors of Defendant, and all others acting on behalf of
26 any such client, vendor, or creditor, including sheriffs, marshals, other officers, deputies, servants,
27 agents, employees, and attorneys, aside from the Receiver, are hereby stayed from taking any
28 action to establish or enforce any claim, right, or interest for, against, on behalf of, in, or in the
-9-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
name of, Defendant, any of their partnerships or entities, or the Receiver or the Receiver’s duly
authorized agents acting in their capacities as such, including, but not limited to, the following
actions:
a. Commencing, prosecuting, continuing, entering, or enforcing any suit or
proceeding, except that such actions may be filed to toll any applicable statute of limitations.
b Accelerating the due date of any obligation or claimed obligation; filing or
enforcing any lien; taking or attempting to take possession, custody or control of any asset subject
to the receivership; attempting to foreclose, forfeit, alter or terminate any interest in any asset,
whether such acts are part of a judicial proceeding or are acts of self-help or otherwise.
10 c. Executing, issuing, serving or causing the execution, issuance or service of,
11 any legal process, including, but not limited to, attachments, garnishments, subpoenas, writs of
12 replevin, writs of execution, or any other form of process whether specified in this order or not;
13 d. Doing any act or thing whatsoever to interfere with Receiver taking
ak 14 custody, control, possession, or management of the receivership assets or documents, or to harass
15 or interfere with Receiver in any way, or to interfere in any manner with the exclusive jurisdiction
16 of this Court over Defendant’s business.
17 15. This Order does not stay:
18 a. The commencement or continuation ofa criminal action or proceeding.
19 b The commencement or continuation of an action or proceeding by a
20 governmental unit, to enforce such governmental unit’s police or regulatory power.
21 c. The enforcement of a judgment, other than a money judgment, obtained in
22 an action or proceeding by a governmental unit to enforce such governmental unit’s police or
23 regulatory power.
24 d. The issuance to Defendant of a notice of tax deficiency.
25 16. No individual or entity may sue the Receiver or initiate any action against the
26 Property or the Receivership Estate, including the filing of a bankruptcy petition(s) under Title 11
27 of the United States Code, without first obtaining permission of this Court. The Receiver is vested
28 with the sole authority to file a bankruptcy petition on behalf of Defendant, and any such power
-10-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
residing with any (i) defendant in this case (or its agent(s), successor(s), or any person(s) or entity
acting on its behalf) (ii) third party, or (iii) creditor of Debtor, has been and is revoked and vested
solely with the Receiver until further order of this Court.
COMPENSATION OF RECEIVER
IT IS FURTHER ORDERED that:
17. The Receiver may employ or continue to employ, without further order ofthis
Court: (i) professionals from the Receiver’s firm, Receivership Specialists, as necessary to fulfill
the Receiver’s duties under the terms of this order, (ii) an attorney licensed to practice in the State
of California and in any additional jurisdiction, as may be necessary, wherever the receivership
10 assets may be found, and (iii) an accountant.
11 18. The Receiver and his professionals, and all personnel hired by the Receiver as
12 herein authorized, including counsel to the Receiver and accountant, are entitled to reasonable
13 compensation for the performance of duties pursuant to this order and for the cost of actual out-
14 of-pocket expenses incurred by them, which compensation shall be derived exclusively from
15 assets now held by, or in the possession or control of, or which may be received by, Defendant or
16 which are otherwise recovered by the Receiver.
17 19. The Court hereby approves the following hourly rates, plus expenses, as follows:
18 $350.00 per hour for the Receiver and his partners, $295.00 per hour for Senior Project Manager,
19 $250.00 per hour for the Receiver’s accountant, $95.00 per hour for the Receiver’s bookkeeper,
20 and $85 per hour for administrative employees and assistants. The Receiver is authorized to pay
21 his reasonable out-of-pocket expenses “as incurred” each month from Receivership Estate funds
22 (including, but not limited to necessary expenses applicable for the protection and preservation of
23 the Receivership Estate such as fees for security guards, utilities, reasonable travel expenses,
24 postage, and court filing fees), or if insufficient funds exist, from funds that may provided by
25 Plaintiff, or third parties, as provided in Paragraph 21 below. The Receiver shall also be entitled
26 to reasonable fees for work performed prior to the receivership appointment pertaining to due
27 diligence and the Application, his Declaration, Oath and Nomination.
28 20. The Receiver and each professional shall file with the Court and serve on the
-ll-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
parties statements on a monthly basis, which shall include a description of all services provided
and expenses incurred, with the first such statement filed no later than thirty (30) days from the
date of this order. If no objection to the fees and expenses in the statements is filed with the Court
by any party within fourteen (14) days of service of the statements, then Receiver shall be
authorized to pay such statements on an interim basis, with final approval thereof to be reserved
until the closing of the case. The Receiver shall not increase the hourly rates used as the bases for
such fee applications without prior approval of the Court.
21. Ifthe Receiver does not have sufficient funds to administer the Receivership
Estate as prescribed above, the Receiver may, without further order of this Court, issue
10 Receivership Certificates in increments of no less than $10,000 bearing interest at ten percent
11 (10%) per annum, up to $200,000 in the aggregate, to any person or parties including, but not
12 limited to, the Plaintiff; provided that this provision shall not be construed in any way as an
13 obligation on the part of the Plaintiffto advance any funds to the Receiver for the maintenance of
14 the Receivership Estate. Any such borrowing shall be the sole and exclusive responsibility of the
15 Receivership Estate, and no such borrowing or obligation so incurred shall be the personal risk or
16 obligation of the Receiver. All funds loaned to the Receiver pursuant to Receivership
17 Certificates shall be deemed to be a lien of senior priority subordinated only to (i) the payment of
18 all fees and expenses incurred by the Receiver and its professionals in managing the Receivership
19 Estate; (ii) the expenses of administering the Receivership Estate; and (iii) Plaintiffs secured
20 claim, and shall be repaid prior to all other encumbrances and claims other than Plaintiffs
21 secured claim, which shall retain first priority.
22 RECEIVER’S INVENTORY, MONTHLY STATEMENTS, DISCHARGE
23 IT IS FURTHER ORDERED that:
24 22. Within thirty (30) days after qualification hereunder, the Receiver shall file a
25 detailed inventory of all property of the Receivership Estate. Receiver shall also file a
26 supplemental inventory and report related thereto, if applicable.
27 23. Discharge of the Receiver shall require a court order upon a properly noticed
28 motion approving Receiver’s Final Report and Account and exoneration of the Receiver’s bond,
-12-
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
4871-1287-1263.6
unless the parties and the Receiver entering into a Stipulation and Order for the Receiver’s
discharge.
IT IS FURTHER ORDERED that the Receiver and any of the parties may, at any time,
apply to this Court for further or other instructions or orders and for further powers necessary to
enable the Receiver to perform the Receiver’s duties properly on either an ex-parte basis or via
noticed application or motion on regular or shortened time.
IT IS FURTHER ORDERED that the Plaintiff shall post a bond or cashier’s check in lieu
of the bond in the amount of $10,000.00 as required by Code of Civil Procedure Section 529.
IT IS SO ORDERED.
COB
10
11 Dated: 06/28/2023 , 2023
Judge of the Superior Court
12
Colleen K. Sterne
13
14
15
2g 16
0
17
18
19
20
21
22
23
24
25
26
27
28
ig.
[PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION
1871-1287-1263.6
Preview
Pursuant to CRC 2.259 this document has been electronically filed by the NB Superior Court of California, County of Santa Barbara, on 6/26/2023 FILED Marshall J. Hogan (#286147) SUPERIOR COURT of CALIFORNIA mhogan@swlaw.com COUNTY of SANTA BARBARA Andrew B Still (#312444) 06/28/2023 astill@swlaw.com Darrel E. Parker, Executive Officer SNELL & WILMER L.L.P. BY Chavez, Terri 600 Anton Boulevard, Suite 1400 Deputy Clerk Costa Mesa, CA 92626-7689 Telephone: 714.427.7000 Facsimile: 714.427.7799 Bryce A. Suzuki (pro hac vice forthcoming) bsuzuki@swlaw.com SNELL & WILMER L.L.P. One East Washington Street, Suite 2700 Phoenix, AZ 85004 Telephone: 602.382.6000 Facsimile: 602.382.6070 10 Attorneys for Plaintiff EAST WEST BANK 11 12 SUPERIOR COURT OF THE STATE OF CALIFORNIA 13 14 COUNTY OF SANTA BARBARA- SOUTH COUNTY DIVISION 15 16 EAST WEST BANK, a California state CASE NO. 23CV02629 banking corporation, 17 Assigned to: Hon. Colleen K. Stern Plaintiff, 18 [PkaeiaeodeeieO RDER eos 19 (1) APPROVING STIPULATION FOR HERBL, INC., a California corporation, APPOPINTMENT OF RECEIVER; 20 dba HERBL, HERBL DISTRIBUTION SOLUTIONS, and HDS NATURALS, (2) APPOINTING RECEIVER; AND 21 Defendant. (3) ISSUING PRELIMINARY 22 INJUNCTION 23 Hearing Information: Date: June 28, 2023 24 Time: 8:30 A.M. Dept.:5 25 Complaint Filed: June 20, 2023 26 27 28 [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 1871-1287-1263.6 The Court, having considered (i) the Complaint filed by Plaintiff East West Bank (“Plaintiff”), (ii) the Stipulation for Appointment of Receiver and Issuance of Preliminary Injunction (“Stipulation”); (iii) the Nomination of Kevin Singer as Receiver; and (iv) the Oath of Receiver; and good cause appearing, makes and enters the following Order: IT IS ORDERED that the Stipulation is granted. RECEIVER’S APPOINTMENT AND DUTIES IT IS FURTHER ORDERED that: 1 Kevin Singer shall be and is appointed as Receiver (“Receiver”) of defendant HERBL, Inc. (“Defendant”) and all the assets of Defendant (collectively, the “Receivership 10 Estate”), with the full power of a general equity receiver. 11 2. Upon the entry ofthis Order, and because the Receiver has already filed his Oath 12 of Receiver, the Receiver shall be vested with all the powers and responsibilities of a general 13 equity receiver as provided by law to receivers and as specifically set forth herein. 14 3 The Receiver is authorized and directed to perform the following duties: 15 a. Take possession, custody and control of the Receivership Estate. 16 b Assume full control of Defendant, including by removing, as the Receiver 17 deems necessary or advisable, any director, officer, manager, independent contractor, employee, 18 or agent of any Defendant, from control of, management of, or participation in, the affairs of 19 Defendant. 20 c. Acquire from Defendant, its members, officers, managers, accountants, 21 managing members, and agents, all keys, contracts, agreements, all books and records, books of 22 account, ledgers, operating statement, budgets, all banking records, tax bills wherever located, 23 applicable to the Receivership Estate, documentation pertaining to all contracts, completed or in 24 progress, all lease and/or rental agreements, leasehold interests, and all documents, records and 25 accounts pertaining to the operation, development, and operation of Defendant and the 26 Receivership Estate, expressly including, but not be limited to, all information contained on 27 computers and any and all software relating thereto, including any and all passwords, usernames, 28 security questions to access any systems or online portals or accounts necessary to operate or -2- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 administer the business and/or any of the Receivership Estate. d. Notify the United States Post Office or other mail depository of this Order and instruct it to divert mail to the Receiver; e. Notify applicable local, state and federal taxing authorities of the commencement of the receivership and communicate with said authorities on behalf of the Receivership Estate. f. Open one or more bank accounts for the deposit of assets subject to the receivership, deposit all assets collected in such designated account(s) and, make all payments and disbursements from the Receivership Estate from such account(s). 10 g Subject to an operating budget reasonably acceptable to Plaintiff, continue 11 to conduct the business, or cease operation of the business, of Defendants in such manner, and to 12 such extent, and for such duration as Receiver may in good faith deem to be necessary or 13 appropriate to operate the businesses profitably and lawfully, if at all. ak 14 h Terminate or, subject to an operating budget reasonably acceptable to 15 Plaintiff, retain existing employees or related parties in order to continue any business operations, 16 and in case of such retention, all payroll taxes, workers’ compensation insurance, and related 17 costs will be carried and reported as those of Defendant or such related parties, and not of the 18 Receivership Estate. 19 1 Demand, receive, take control of, and collect all income, rents, issues, 20 profits, proceeds, sales, and all other monies arising from assets of the Receivership Estate, 21 including but not limited to, cash, bank accounts, funds in safety deposit boxes, funds in safes, 22 accounts receivable, monies, checks, drafts, securities, letters of credit and any tangible and 23 intangible pledges as security for the letters of credit; collect debts and compromise same; and 24 take any action respecting assets of the Receivership Estate which the Court may authorize. The 25 Receiver shall have the authority to change signatures to the Receiver on signature cards for 26 existing accounts, and to transfer existing accounts, or funds in existing accounts, into account(s) 27 established by the Receiver. Receiver shall have the authority to receive and endorse checks 28 constituting income from the Receivership Estate. -3- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 J Instruct any individuals making payments to Defendant to instead make all payments to Receiver. k Subject to an operating budget reasonably acceptable to Plaintiff, enter into contracts and purchase insurance as the Receiver reasonably deems necessary. If the Receivership Estate has insufficient funds to purchase adequate insurance coverage for the Receivership Estate, funds may be supplied by Plaintiff, or Receiver will seek instructions from the Court with respect to whether insurance will be obtained and how it is to be paid for. Consistent with existing law, the Receiver shall not be responsible for claims or damages arising from not procuring or inability to obtain insurance. 10 L Subject to an operating budget reasonably acceptable to Plaintiff, obtain 11 and pay for any licenses or permits that the Receiver reasonably believes to be necessary for 12 operation of the Receivership Estate. The Receiver is authorized to assume and utilize and pre- 13 existing licenses or permits, including without limitation licenses governed by the California ak 14 Department of Cannabis Control, subject to applicable regulations and requirements. This Order 15 shall constitute sufficient documentation under section 15024(b)(4) of Article 3, Division 19 of 16 Title 4 of the California Code of Regulations to show that the Defendant is incapable of 17 performing the duties associated with any license issued under the Medicinal and Adult-Use 18 Cannabis Regulation and Safety Act throughout the term of the receivership. The Receiver may 19 also enter into agreements with local and state government to use or extend licenses, permits, or 20 other authorizations currently in place with respect to the Receivership Estate. 21 m, Subject to an operating budget reasonably acceptable to Plaintiff, incur 22 expenses as Receiver deems advisable or necessary for the care, preservation, and maintenance of 23 the Receivership Estate. 24 nN. Maintain accurate records of all receipts and expenditures that the Receiver 25 makes. 26 oO Choose, engage, and employ agents, employees, attorneys, accountants, 27 appraisers, property managers, and other independent contractors and technical specialists as 28 Receiver deems advisable or necessary in the performance of duties and responsibilities under the -4- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 authority granted by this Order. Subject to an operating budget reasonably acceptable to Plaintiff, Receiver shall be permitted to pay such individuals out of funds that come into his possession as Receiver to administer the Receivership Estate. Any liability arising therefrom shall be the sole risk and obligation of the Receivership Estate, and not the personal liability of the Receiver. P. Do all things and incur the risks and obligations in managing assets of the Receivership Estate as ordinarily incurred by owners, managers, and operators of similar assets; provided, however, that no such risk or obligation so incurred shall be the personal risk or obligation of Receiver, but shall be the risk and obligation of the Receivership Estate. q Subject to Plaintiff's reasonable approval and paragraph 3.x., infra, sell any 10 assets of the Receivership Estate in Receiver’s possession on a commercially reasonable basis. 11 fr. Use any tax identification or social security numbers previously used in 12 collection with the operation of assets or documents ofthe Receivership Estate. For the avoidance 13 of doubt, the Receiver may use the State and Federal taxpayer identification numbers of ak 14 Defendant in connection with all accounts and accounting for the Receivership Estate. 15 S. Issue subpoenas and conduct and participate in discovery, take depositions, 16 pursue contempt actions, and otherwise pursue all remedies available on behalf of the 17 Receivership Estate and/or to ensure compliance with Receiver’s authority granted herein. 18 t Cooperate with reasonable requests for information or assistance from 19 applicable law enforcement agencies. 20 u Institute, adjust, appear in, intervene in, defend, or compromise or 21 otherwise dispose of legal actions in state, federal, or foreign courts or arbitration proceedings as 22 the Receiver deems necessary or advisable to recover, protect, maintain, or sell assets of the 23 Receivership Estate, or that the Receiver deems necessary or advisable to carry out the Receiver’s 24 mandate under this Order, including, but not limited to, actions challenging fraudulent or voidable 25 transfers. 26 Vv. Exercise any power authorized by statute or ordered by the Court. 27 Ww. Apply to this Court, at any time, for further or other instructions or orders 28 or for additional or other powers necessary to enable Receiver to properly perform his duties. -5- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 x. Market for sale, and subject to notice to all parties and with the consent of the Court, sell all, or substantially all, of the receivership assets, including the Defendant’s business as a going concern, execute all documents required for such sale, and undertake any and all duties required to effectuate such sale. All applications for approval of such sale, or any other sale of assets with a proposed purchase price of more than $250,000, shall be brought before this Court by the Receiver on noticed motion or if time does not allow, by ex parte notice to all parties. Where such application is brought on ex parte notice, all parties shall, unless the Court indicates otherwise, have seven (7) calendar days within which they may file objections together with supporting evidence as to the price or terms of such sale, in which case the Court may either 10 order further briefing, and/or set a hearing for further argument or rule on the pleadings then on 11 file. Ifno objection is filed within said seven (7) day time period to any ex parte application, the 12 Court will conclude that there is no opposition to the Receiver’s application. 13 y Upon a sale of assets pursuant to the immediately preceding paragraph, the 14 Receiver shall disburse, or if appropriate, instruct escrow to distribute all net funds resulting from 15 said sale(s) as follows: 16 @) First to the payment of all fees and expenses incurred by the 17 Receiver and its professionals in managing the Receivership Estate; 18 (i) Second to the expenses of administering the receivership; 19 (iii) Third to the payment of Plaintiffs claim; 20 (iv) Fourth to the payment of any taxes which, if not paid, would form 21 the basis for a lien on the Receivership Estate; and 22 (vy) The remainder to be held by the Receiver until further order ofthis 23 Court in an interest-bearing segregated account with all liens attaching to those 24 funds in the priority in which they are entitled to be paid. However, the Receiver, 25 at any time, may use these segregated funds to pay any taxes, fines, fees or other 26 governmental agency costs or assessments attributable to the Property as they 27 become due. 28 All expenses of the operation of Defendant’s business are the risk of the -6- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 Receivership Estate and not the personal obligation of the Receiver. 5 A conformed copy of this Order shall be as good as a certified copy for the Receiver’s purposes oftaking possession and control of Defendant’s business and the assets and documents subject to this order. PRELIMINARY INJUNCTION, REQUIRED COOPERATION, AND STAY OF ACTIONS IT IS FURTHER ORDERED that: 6 Defendant and its agents, partners, joint venturers, property managers, officers, employees, assignees, successors, attorneys, representatives, and all persons acting under, in 10 concert with, or for them, and all other persons in possession, custody, or control of any 11 documents or assets of Defendant, who have actual or constructive notice of this order and their 12 agents and employees, shall not: s 13 a. Commit or permit any waste of the assets or any part thereof, or suffer or 14 commit or permit any act or any part thereof in violation of law, or remove, transfer, encumber or 15 otherwise dispose of any of Defendant’s assets or other property of the Receivership Estate or any 16 part thereof. 17 b Demand, collect, receive, discount or in any other way divert or use any of 18 the monies or accounts receivable of the Defendant or the Receivership Estate. 19 c. Excuse any debts owed to Defendant. 20 d. Directly or indirectly interfere in any manner with the discharge of the 21 Receiver’s duties under this Order or the Receiver’s possession of and operation or management 22 of the Defendant’s assets and the Receivership Estate. 23 ¢€. Expend, disburse, transfer, assign, sell, convey, devise, pledge, mortgage, 24 create a security interest in, encumber, foreclose, conceal or in any manner whatsoever deal in or 25 dispose of the whole or any part of the assets of the Defendant’s assets or the Receivership Estate. 26 f. Terminate or otherwise affect any of the contracts or utilities that service 27 the Receivership Estate. 28 g Destroy, secrete, deface, transfer, or otherwise alter or dispose of any assets -7- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 or documents subject to the receivership, including, but not limited to, scripts, telephone call logs, audio or visual recordings, correspondence, computer records, websites, other data compilations, electronically-stored records, books, records, accounts, writings, drawings, graphs, charts, photographs, or any other papers or electronic data of any kind or nature. h Fail to notify the Receiver of any assets subject to the receivership, or to provide any assistance or information requested by the Receiver in connection with obtaining possession, custody, or control of such assets. 1 Take any act which will, or would tend to, materially impair, defeat, divert, prevent or prejudice the preservation of the assets of the Defendant or the Receivership Estate. 10 7 Defendant and its agents, officers and employees and all persons acting under, in 11 concert with, or for it, shall cooperate with and assist the Receiver with respect to his possession 12 of and operation or management of the Defendant’s assets and documents subject to the 13 receivership, and shall relinquish and turn over immediately, possession to the Receiver, all assets ak 14 comprising the Receivership Estate, both real and personal property, tangible and intangible 15 property including but not limited to electronic files and records, including, without limitation, all 16 documentation, records, and information set forth in Paragraph 3.c above, and any other 17 documentation, records, and information pertaining to the Receivership Estate reasonably 18 requested by the Receiver. 19 8 All monies, funds, cash, certificates of deposit (CDs) and other fungible assets 20 which are received, or have been received, by Defendant, its agents, servants, employees or 21 representatives, or any persons or entities acting under or in concert with Defendant, shall be 22 turned over to the Receiver within forty-eight (48) hours ofthe date that this order is served on 23 Defendant, and that Defendant shall simultaneously, upon said turnover, deliver to the Receiver 24 written verification of the source of all said monies being turned over. 25 9. Defendant shall turn over to the Receiver and direct all other third parties in 26 possession thereofto turn over all keys, leases, books, records, books of account, ledgers, 27 operating statements, budgets, any and all passwords, usernames, security questions to access any 28 systems, electronic or online portals or accounts necessary to operate the business, and all other -8- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 Receivership Estate records relating to the Receivership Estate, wherever located, and in whatever mode maintained, including information stored electronically or contained on computers and any and all software relating thereto as well as all banking records, statements and cancelled checks. 10. Defendant shall turn over to the Receiver, all documents which pertain to all licenses, permits and any local, State and Federal government approvals relating to its business, and shall immediately advise the Receiver of their Federal Taxpayer Identification Number used in connection with the operation of the business which the Receiver is authorized to use in connection with the administration of the Receivership Estate. 10 11. With respect to any existing insurance coverage, Defendant shall immediately 11 instruct its insurance company(ies) or agent(s) to name the Receiver as additional insured on all 12 insurance policies covering the Receivership Estate or the Defendant’s employees and/or the 13 Receiver and his agents including property managers and employees who are working with the ak 14 Receivership Estate for the period that the Receiver is in possession and/or control of the 15 Receivership Estate. 16 12. The Plaintiff and its officers, employees, attorneys and agents shall have access to 17 inspect the Receivership Estate and the monies (upon reasonable advance notice to the Receiver) 18 to enable them to review the same from time to time during the pendency of this Receivership. 19 13. Upon service of a copy of this Order, all banks, broker-dealers, savings and loans, 20 escrow agents, title companies, commodity trading companies, or other financial institutions shall 21 cooperate with all reasonable requests of the Receiver or his agents relating to implementation of 22 this order, including transferring funds at his direction and producing records related to the assets 23 of the Receivership. 24 14. Except by leave of this Court, during pendency of the receivership ordered herein, 25 Defendant and all clients, vendors, and creditors of Defendant, and all others acting on behalf of 26 any such client, vendor, or creditor, including sheriffs, marshals, other officers, deputies, servants, 27 agents, employees, and attorneys, aside from the Receiver, are hereby stayed from taking any 28 action to establish or enforce any claim, right, or interest for, against, on behalf of, in, or in the -9- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 name of, Defendant, any of their partnerships or entities, or the Receiver or the Receiver’s duly authorized agents acting in their capacities as such, including, but not limited to, the following actions: a. Commencing, prosecuting, continuing, entering, or enforcing any suit or proceeding, except that such actions may be filed to toll any applicable statute of limitations. b Accelerating the due date of any obligation or claimed obligation; filing or enforcing any lien; taking or attempting to take possession, custody or control of any asset subject to the receivership; attempting to foreclose, forfeit, alter or terminate any interest in any asset, whether such acts are part of a judicial proceeding or are acts of self-help or otherwise. 10 c. Executing, issuing, serving or causing the execution, issuance or service of, 11 any legal process, including, but not limited to, attachments, garnishments, subpoenas, writs of 12 replevin, writs of execution, or any other form of process whether specified in this order or not; 13 d. Doing any act or thing whatsoever to interfere with Receiver taking ak 14 custody, control, possession, or management of the receivership assets or documents, or to harass 15 or interfere with Receiver in any way, or to interfere in any manner with the exclusive jurisdiction 16 of this Court over Defendant’s business. 17 15. This Order does not stay: 18 a. The commencement or continuation ofa criminal action or proceeding. 19 b The commencement or continuation of an action or proceeding by a 20 governmental unit, to enforce such governmental unit’s police or regulatory power. 21 c. The enforcement of a judgment, other than a money judgment, obtained in 22 an action or proceeding by a governmental unit to enforce such governmental unit’s police or 23 regulatory power. 24 d. The issuance to Defendant of a notice of tax deficiency. 25 16. No individual or entity may sue the Receiver or initiate any action against the 26 Property or the Receivership Estate, including the filing of a bankruptcy petition(s) under Title 11 27 of the United States Code, without first obtaining permission of this Court. The Receiver is vested 28 with the sole authority to file a bankruptcy petition on behalf of Defendant, and any such power -10- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 residing with any (i) defendant in this case (or its agent(s), successor(s), or any person(s) or entity acting on its behalf) (ii) third party, or (iii) creditor of Debtor, has been and is revoked and vested solely with the Receiver until further order of this Court. COMPENSATION OF RECEIVER IT IS FURTHER ORDERED that: 17. The Receiver may employ or continue to employ, without further order ofthis Court: (i) professionals from the Receiver’s firm, Receivership Specialists, as necessary to fulfill the Receiver’s duties under the terms of this order, (ii) an attorney licensed to practice in the State of California and in any additional jurisdiction, as may be necessary, wherever the receivership 10 assets may be found, and (iii) an accountant. 11 18. The Receiver and his professionals, and all personnel hired by the Receiver as 12 herein authorized, including counsel to the Receiver and accountant, are entitled to reasonable 13 compensation for the performance of duties pursuant to this order and for the cost of actual out- 14 of-pocket expenses incurred by them, which compensation shall be derived exclusively from 15 assets now held by, or in the possession or control of, or which may be received by, Defendant or 16 which are otherwise recovered by the Receiver. 17 19. The Court hereby approves the following hourly rates, plus expenses, as follows: 18 $350.00 per hour for the Receiver and his partners, $295.00 per hour for Senior Project Manager, 19 $250.00 per hour for the Receiver’s accountant, $95.00 per hour for the Receiver’s bookkeeper, 20 and $85 per hour for administrative employees and assistants. The Receiver is authorized to pay 21 his reasonable out-of-pocket expenses “as incurred” each month from Receivership Estate funds 22 (including, but not limited to necessary expenses applicable for the protection and preservation of 23 the Receivership Estate such as fees for security guards, utilities, reasonable travel expenses, 24 postage, and court filing fees), or if insufficient funds exist, from funds that may provided by 25 Plaintiff, or third parties, as provided in Paragraph 21 below. The Receiver shall also be entitled 26 to reasonable fees for work performed prior to the receivership appointment pertaining to due 27 diligence and the Application, his Declaration, Oath and Nomination. 28 20. The Receiver and each professional shall file with the Court and serve on the -ll- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 parties statements on a monthly basis, which shall include a description of all services provided and expenses incurred, with the first such statement filed no later than thirty (30) days from the date of this order. If no objection to the fees and expenses in the statements is filed with the Court by any party within fourteen (14) days of service of the statements, then Receiver shall be authorized to pay such statements on an interim basis, with final approval thereof to be reserved until the closing of the case. The Receiver shall not increase the hourly rates used as the bases for such fee applications without prior approval of the Court. 21. Ifthe Receiver does not have sufficient funds to administer the Receivership Estate as prescribed above, the Receiver may, without further order of this Court, issue 10 Receivership Certificates in increments of no less than $10,000 bearing interest at ten percent 11 (10%) per annum, up to $200,000 in the aggregate, to any person or parties including, but not 12 limited to, the Plaintiff; provided that this provision shall not be construed in any way as an 13 obligation on the part of the Plaintiffto advance any funds to the Receiver for the maintenance of 14 the Receivership Estate. Any such borrowing shall be the sole and exclusive responsibility of the 15 Receivership Estate, and no such borrowing or obligation so incurred shall be the personal risk or 16 obligation of the Receiver. All funds loaned to the Receiver pursuant to Receivership 17 Certificates shall be deemed to be a lien of senior priority subordinated only to (i) the payment of 18 all fees and expenses incurred by the Receiver and its professionals in managing the Receivership 19 Estate; (ii) the expenses of administering the Receivership Estate; and (iii) Plaintiffs secured 20 claim, and shall be repaid prior to all other encumbrances and claims other than Plaintiffs 21 secured claim, which shall retain first priority. 22 RECEIVER’S INVENTORY, MONTHLY STATEMENTS, DISCHARGE 23 IT IS FURTHER ORDERED that: 24 22. Within thirty (30) days after qualification hereunder, the Receiver shall file a 25 detailed inventory of all property of the Receivership Estate. Receiver shall also file a 26 supplemental inventory and report related thereto, if applicable. 27 23. Discharge of the Receiver shall require a court order upon a properly noticed 28 motion approving Receiver’s Final Report and Account and exoneration of the Receiver’s bond, -12- [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 4871-1287-1263.6 unless the parties and the Receiver entering into a Stipulation and Order for the Receiver’s discharge. IT IS FURTHER ORDERED that the Receiver and any of the parties may, at any time, apply to this Court for further or other instructions or orders and for further powers necessary to enable the Receiver to perform the Receiver’s duties properly on either an ex-parte basis or via noticed application or motion on regular or shortened time. IT IS FURTHER ORDERED that the Plaintiff shall post a bond or cashier’s check in lieu of the bond in the amount of $10,000.00 as required by Code of Civil Procedure Section 529. IT IS SO ORDERED. COB 10 11 Dated: 06/28/2023 , 2023 Judge of the Superior Court 12 Colleen K. Sterne 13 14 15 2g 16 0 17 18 19 20 21 22 23 24 25 26 27 28 ig. [PROPOSED] ORDER APPOINTING RECEIVER AND ISSUING PRELIMINARY INJUNCTION 1871-1287-1263.6