Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 1 of 17 PageID 4482
NETSPHERE, INC.,
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
MANILA INDUSTRIES, INC., AND
MUNISH KRISHAN
PLAINTIFFS,
V .
§
§
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 3:09-CV-0988-F
JEFFREY BARON AND
ONDOVA LIMITED COMPANY,
DEFENDANTS.
THE
RECEIVER'S
FIRST
APPLICATION
FOR
REIMBURSEMENT
OF
FEES
AND
EXPENSES
INCURRED
BY
GARDERE
WYNNE
SEWELL
LLP
Peter
S.
Vogel, Receiver over Jeffrey Baron and the Receivership Parties (the
"Receiver"), files this First Application for Reimbursement
of
Fees and Expenses Incurred by
Gardere Wynne Sewell LLP ("First Gardere Fee Application") for the period commencing on
November 24, 2010 and through November 30, 2010 (the "First Application Period"). In
support
of
the First Gardere Fee Application, the Receiver states as follows:
I.
SUMMARY
OF
REQUEST
Name
of
Applicant:
Peter
S.
Vogel on behalf
of
Gardere Wynne Sewell LLP
Role
in
Case:
Counsel to Peter
S.
Vogel, Receiver
Application
Period:
November
24,2010
- November
30,2010
Application
Period
(November
24,2010
to
November
30, 2010)
Fees
Expenses Total
Amounts
Requested $24,324.50 $0.00
$24,324.50
Less: Amounts Previously Paid $0.00 $0.00 $0.00
Total Compensation Due
$24,324.50 $0.00 $24,324.50
100%
100%
Total Req.
Paid
By
This Appl.
$24,324.50 $0.00 $24,324.50
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 2 of 17 PageID 4483
II. PRELIMINARY
STATEMENT
In this First Gardere Fee Application, the Receiver asks this Court for approval and
allowance
of
all (100%) fees earned and expenses incurred by Gardere Wynne Sewell LLP
("Gardere") during the First Application Period. As shown by the record before this Court and
the exhibits attached hereto, since its employment, Gardere has worked diligently on a daily
basis to carry out the Receiver's duties under this Court's Order Appointing Receiver (the
"Receiver Order") and other related orders. As shown on the record before this Court, and in the
exhibits attached hereto, the Receiver believes that Gardere's work has resulted in identifiable,
tangible, and material progress in carrying out the Receiver Order. Accordingly, the First
Gardere Fee Application should be approved.
III. SUPPORT
In support
of
the First Gardere Fee Application, the Receiver has attached true and
correct copies
of
the following:
1)
Gardere's Invoice for Legal Services Rendered on Behalf
of
the Receiver
during the First Application Period, detailing all fees requested for
payment by Gardere and including narratives
of
the work performed by
Gardere on behalf
of
the Receiver, is attached hereto
as
Exhibit A.
2) Receiver's Report
of
Work Performed in November 2010, detailing all the
work performed by the Receiver and Gardere on behalf
of
the Receiver
during the First Application Period, is attached hereto
as
Exhibit
B.
IV. REQUEST
The Receiver respectfully requests that this Court enter an order (a) allowing and
authorizing compensation to Gardere in the amount
of
$24,324.50; (b) directing the Receiver,
and his agents or representatives,
to
immediately pay the $24,324.50
to
Gardere from any funds
from the Receiver Assets from which the Receiver has obtained access
to
date, including funds
the Receiver obtained from any
of
the following accounts: (1) Woodforest National Bank,
THE
RECEIVER'S
FIRST
APPLICATION
FOR
REIMBURSEMENT
OF
FEES
AND EXPENSES INCURRED
BY
GARDERE
WYNNE
SEWELL
LLP
Page 2
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 3 of 17 PageID 4484
Account #1715301261, under Jeffrey Baron's name, (2) TD Ameritrade, Account #144-211236,
under Mr. Baron's name, (3) BBVA Compass Bank, Account #2521421315, under Novo Point,
LLC's
name, and (4) BBVA Compass Bank, Account #2521421323, under Quantec,
LLC's
name.
Respectfully submitted,
/s/
Barry M Golden
Barry M. Golden
Texas State Bar No. 24002149
Peter
L.
Loh
Texas Bar Card No. 24036982
GARDERE WYNNE SEWELL LLP
1601 Elm Street, Suite 3000
Dallas, Texas 75201
(214) 999.4667 (facsimile)
(214) 999.3000 (telephone)
bgolden@gardere.com
ploh@gardere.com
ATTORNEYS
FOR
THE
RECEIVER,
PETER
S.
VOGEL
CERTIFICATE
OF
SERVICE
I hereby certify that a true and correct copy
of
the foregoing document was served via the
Court's ECF system on all counsel
of
record on December 30, 2010.
/s/
Peter
L.
Loh
Peter
L.
Loh
THE
RECEIVER'S
FIRST
APPLICATION
FOR
REIMBURSEMENT
OF
FEES
AND EXPENSES INCURRED
BY
GARDERE
WYNNE
SEWELL
LLP
Page 3
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 4 of 17 PageID 4485
EXHIBIT A
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 5 of 17 PageID 4486
Peter
S.
Vogel, Receiver
1601 Elm Street, Suite 3000
Dallas,
TX
75201
GARDERE
WYNNE
SEWELL LLP
A TTORNEYS AND COUNSELORS
1601
ELM STREET SUITE 3000
DALLAS,
TEXAS
75201-4761
(214) 999-3000
TAX I.D. 75-0730814
REMITTANCE
ADVICE
December
9,2010
Invoice Number: 1019184
Due within 30 days
ofreceipt
Client: 136589
Re: Matter: 000002 Counsel for Receiver
Total
Fees
24,324.50
TOT
AL
CURRENT
BILL $ 24.324.50
Please
return
this remittance page with
your
payment to:
Gardere
Wynne Sewell LLP, P.O. Box 660256, Dallas,
TX
75266-0256 Payment can also be made by
WIRE
to:Amegy Bank,
2501
North
Harwood Street, Dallas, Texas 75201 - ABA routln'g number: 113011258 ,Account name:
Gardere
Wynne Sewell LLP, Account #:
53271439,For INTERNATIONAL WIRES: Amegy Bank,
SWIFT
SWBK
US44,
Important:
Please reference a Client # and/or Invoice #
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 6 of 17 PageID 4487
Peter
S.
Vogel, Receiver
1601
Elm
Street, Suite 3000
Dallas,
TX
75201
GARDERE
WYNNE
SEWELL
LLP
ATTORNEYS AND COUNSELORS
1601
ELM
STREET
SUITE
3000
DALLAS, TEXAS 75201-4761
(214) 999-3000
TAX
1.0
. 75-0730814
December
9,2010
Invoice Number: 1019184
Client: 136589
Due within 30 days
ofreceipt
FOR
LEGAL SERVICES RENDERED THROUGH 11/30/10
Matter·no: 000002
Counsel for Receiver
Date
11124110
11125/10
Attorney/Description
B. Golden
Review motion relating to receivership (.2); review exhibits attaching to same
motion (.1); review order relating to receivership (.3); analyze strategy and work
relating to compliance with receivership order (.2); review and revise sworn
statement from Peter Vogel regarding receiver position (.1); analyze strategy for
posting bond regarding same (.1).
B. Golden
Review petition in Friedman & Feiger v. Garrey (.2); analyze strategy for
enforcing order ceasing transfer
of
domain names (.2); review related
correspondence (.2).
Hours
1.00
0.60
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 7 of 17 PageID 4488
Peter
S.
Vogel, Receiver
Client No. 136589 Page 3
December 9,2010 Invoice No. 1019184
Date
11126/10
11127110
11127110
11127110
AttorneylDescription
B.
Golden
Analyze impact
of
Receiver Order on pending litigation matters and mediations
(.2); review letter from Hall to
Broome
regarding Hall
v.
Baron
lawsuit and
related
issue to impact
of
Receiver
Order
(.1); review correspondence from Ravi
Puri regarding ID Genesis LLC and potential request to modify Receiver
Order
to
exclude it (.1); analyze strategy regarding determination
of
whether ID Genesis
LLC should be excluded from
relief
in Receiver Order (.4);
correspond
with Ravi
Puri regarding same (.2); review correspondence from counsel for
ICANN
regarding jurisdictional challenge to
Receiver
Order
and role in process
of
transfer
of
On do va's domain names (.5); conduct legal research regarding same
jurisdictional
challenge (.5);
correspond
with counsel for ICAAN regarding same
jurisdictional
challenge to Receiver
Order
and role in process
of
transfer
of
Ondova's domain names (.5); review correspondence from Village
Trust
regarding
jurisdictional
challenge to Receiver Order (.2); conduct legal
research
regarding
same jurisdictional challenge (.4); correspond with Village
Trust
regarding same
jurisdictional
challenge to Receiver
Order
(.3); review correspondence from
counsel for Verisign regarding issues concerning alleged
expiration
of
domain
names and transfer to Fabulous.com (.3); analyze strategy relating to same issues
concerning alleged expiration
of
domain names and transfer to
Fabulous.com
(.9);
analyze issues regarding release
of
domain names
based
on
UDRP
decisions (.2);
analyze strategy for posting
bond
pursuant to Receiver Order (.2); analyze
strategy concerning inclusion
of
Quantec LLC and Novo
Point
LLC within scope
of
Receiver Order (.2); analyze strategy for preparing summary
of
Receiver Order
(.2).
B.
Golden
Continue to review correspondence from counsel for ICANN regarding
jurisdictional
challenge to Receiver
Order
and role in process
of
transfer
of
Ondova's domain names (.2); continue analyzing legal issues regarding same
jurisdictional
challenge (.2); continue to analyze issues concerning alleged
expiration
of
domain names and transfer to
Fabulous.com
(1.0); continue analyze
strategy for preparing summary
of
Receiver
Order
(.1); analyze strategy and legal
issues for filing miscellaneous actions to enforce Receiver
Order
outside
of
district and sending out related 754 letters (.5).
P.Loh
Review
and analyze correspondence
between
Receiver, Receiver's counsel,
counsel for Trustee, and counsel for parties implicated in
Order
Appointing
Receiver concerning impact
of
order appointing receiver and
breadth
of
same
(1.0); research and analyze locations
of
various entities impacted
by
Order
Appointing Receiver for possible filing
of
miscellaneous
act~ons
in
judicial
district where entities are located in order to comply with U.S.C. Section 754
(1.6);
correspond
with counsel for Receiver concerning miscellaneous actions
(.3).
J.
Blakley
Review Court's Order Appointing Receiver (.5); draft memorandum to P. Vogel
and B.
Golden
outlining the various parties' obligations under the receivership
order (1.5).
Hours
5.10
2.00
2.90
2.00
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 8 of 17 PageID 4489
Peter
S.
Vogel, Receiver
Client No. 136589 Page 4
December 9,2010 Invoice No. 1019184
Date
11/28/10
11128/10
11129/10
11129/10
AttorneylDescription
B. Golden
Analyze strategy for opening miscellaneous actions and effectuating 754 notice
of
Receiver Order (.7); communicate with counsel for ICAAN regarding issues
relating to same notice (.2); analyze strategy regarding whether to oppose
VeriSign's proposed modification
of
Receiver Order to allow domain names to
transfer to Fabulous.com (1.2); communicate with counsel for VeriSign regarding
same (.8); analyze potential alternatives to allowing domain names to transfer to
Fabulous.com (.7); analyze strategy for responding to request
by
"in-house"
counsel for
Jeff
Baron regarding privilege issues and daily living expenses (.3);
communicate with "in-house" counsel for
Jeff
Baron regarding same (.2); analyze
legal issues regarding jurisdiction over assets located in
Cook
Islands (.2);
analyze strategy for collecting Account Information and Account Documents from
individuals with information and documents related to one
or
more
of
the
Receivership Parties, Receivership Assets, and Receivership Documents (.8);
communicate with Sid Chesnin, Martin Thomas, Gary Lyon, James Eckels, Josh
Cox,
Jeff
Baron,
Jeff
Harbin, and
Don
Ham
regarding same (1.7); analyze strategy
relating to requests for extensions to provide information and documents related
to one or more
of
the Receivership Parties, Receivership Assets, and Receivership
Documents (.2); communicate with Sid Chesnin and James Eckels regarding same
(.2).
P.Loh
Draft Notice
of
Filing Miscellaneous Action for filing in
judicial
districts where
property subject to receivership order resides (.5); review and analyze federal
case law and statutes regarding a receiver's jurisdiction over
property
residing
outside the
judicial
district
of
his appointment (.7); review and analyze federal
case law and statutes concerning the procedure for establishing
jurisdiction
over
property subject to the receiver order which resides outside
of
the United States
(.9); draft cover letter to clerks
of
district courts for filing
ofmiscellaneous
actions (.2).
D. Ruckman
Conference with Peter Vogel regarding background issues and initial receivership
proceedings.
B. Golden
Continue analyzing strategy and legal issues relating to potential transfer
of
domain names to Fabulous.com (1.3); analyze strategy and legal issues relating to
protections against unauthorized transfer
of
registrants after transfer
of
domain
names to Fabulous.com (1.1); receive and review financial documents produced
by
various current
or
former representatives
of
Receiver Parties (1.8); analyze
strategy for confirming amounts in Fabulous.com accounts and specific uses
of
such amounts (i.e., renewals
of
domain-name licenses expiring in the near future)
(.7); revise and draft communications to Fabulous.com relating to same
(.4);
interview and communicate
bye-mail
with James Eckels regarding Receiver
Parties, Receiver Assets, and related issues (2.0); analyze strategy for collecting
and analyzing necessary materials to determine current assets, revenues, and debts
(.4); analyze strategy for payments
of
immediate debts (.3); analyze strategy
relating to Receiver's going-forward role in bankruptcy proceeding (.1); analyze
strategy for contacting account institutions, sending them Order, effectuating
Receiver as sole party to make withdrawals (.3); communicate with Trustee
regarding various
of
the above issues (.4).
Hours
7.20
2.30
0.50
8.80
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 9 of 17 PageID 4490
Peter
S.
Vogel, Receiver
Client No. 136589
Page 5
December 9, 2010
Invoice No. 1019184
Date
11129/10
11/29/10
11129/10
11130/10
11130/10
Attorney/Description
P.Loh
Conference with James Eckles, corporate counsel for Quantec, LLC,
Novo
Point,
LLC, and other entities related to Ondova Limited Company and subject to Order
Appointing Receiver, concerning assets and operations
of
entities in receivership
estate (2.5); review and analyze corporate formation documents, financial
statements, bank statements, and other related documents
produced
by James
Harbin, accountant for Quantec, LLC, Novo Point, LLC, and other entities related
to Ondova Limited Company (2.7); prepare notice
of
filing miscellaneous action
per
28 U.S.C. Section 754 (.8); correspond with Mike Robertson
of
Fabulous. com
concerning transfer
of
domain names belonging to receivership estate to
Fabu10us.com (1.2).
J.
Blakley
Prepare receiver's bond (.7); communicate with surety (.3); execute and file
receiver's
bond
(.3).
J. Blakley
Research exercise
of
receiver's jurisdiction and control over property outside the
United States.
D. Ruckman
Review receivership order and give comments.
B. Golden
Continue analyzing strategy and status for filing miscellaneous actions and
serving 754 papers, in order to effectuate Receiver Order outside
of
district (.5);
determine pending litigation matters involving Receiver Parties and determine
going-forward litigation strategy (.3); analyze strategy for determining leases,
notes, professional fees, and other alleged debts (.3); analyze strategy for
retaining
or
dismissing various employees, contractors, and professionals
of
Receiver Parties (.5); determine strategy to manage privacy issues concerning
ownership
of
domain names (.2); prepare for hearing
on
Veri Sign's emergency
motion to modify order (.6); participate in hearing
on
VeriSign's emergency
motion to modify order (.5); review and prepare proposed revisions to
proposed
Order
on
VeriSign's emergency motion to modify order (.3); communicate with
counsel for VeriSign regarding transfer
of
domain names and emergency motion
to modify order (.8); analyze strategy for preparing motion to clarify Receiver
Order (in order to add two entities discussed with Court at hearing on VeriSign's
emergency motion to modify order) (.3); analyze strategy for preparing second
motion to clarify Receiver Order (in order to add additional entities that might be
considered Receiver Parties) (.3); analyze strategy for reducing domain name
portfolio (.2); analyze additional operational issues concerning maintenance
of
domain names (.7); review documents produced
by
various individuals relating to
Receiver Assets (.7); determine strategy for collecting additional documents from
various individuals relating
to
Receiver Assets (.4); analyze strategy for retaining
accountant as hired professional (.2); analyze strategy for consolidating foreign
Receiver Parties into domestic Receiver Parties (.8); determine going-forward
role
of
Receiver in bankruptcy case (.2); coordinate efforts to modify
bank
accounts in compliance with Receiver Order (.3); prepare global projects list (.5).
Hours
7.20
1.30
0.90
0.30
8.60
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 10 of 17 PageID 4491
Peter
S.
Vogel, Receiver
Client No. 136589
Page 6
December
9,2010
Invoice No. 1019184
Date
11130/10
11130/10
11/30/10
Total
for
Hours &
Services
Attorney/Description
P.Loh
Correspond
with Jafari McClenton,
manager
at
BBVA
Compass
Bank,
concerning
withdrawal
of
funds from checking accounts belonging to
Ondova
affiliated
companies (.6);
research
and
analyze locations
of
receivership
property
for filing
of
miscellaneous actions
per
28 U.S.C.
Section
754
in
jurisdictions
around
the
country (1.2);
correspond
with counsel concerning same (.8);
draft
notice
of
employment
of
attorneys (.5);
review
and
analyze
correspondence
from
various
attorneys
representing
parties to litigation
and
the
Chapter
11
trustee (.7);
correspond
multiple times via e-mail
and
phone
with Eric
Schnabel,
counsel
for
VeriSign, concerning transfer
of
domain names to Fabulous.
com
(.8);
review
and
analyze
possibility
of
deletion
of
domain names due
expiration
on
November
30,
2010
(.4).
J.
Blakley
Research
service
of
receivership documents
on
entities
located
within
the
Cook
Islands.
J.
Blakley
Research
service
of
receivership documents
on
entities within
other
federal
jurisdictions
(1.9);
draft
chart
of
receivership entities, business addresses,
relevant
district court, and
registered
agent (1.9).
$24,324.50
Matter
Invoice
Summary:
Hours
5.00
2.00
3.80
61.50
Total
Fees
Total
this
Matter
$24,324.50
$24,324.50
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 11 of 17 PageID 4492
EXHIBITB
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 12 of 17 PageID 4493
Case 3:09-cv-00988-F Document
191
Filed 12/30/10 Page 1
of
6 PagelD
4461
IN
THE
UNITED STATES DISTRICT COURT
FOR
THE
NORTHERN
DISTRICT
OF TEXAS
DALLAS DIVISION
NETSPHERE,
INC.,
MANILA
INDUSTRIES, INC., AND
MUNISH
KRlSHAN
PLAINTIFFS,
V.
JEFFREY
BARON
AND
ONDOVA
LIMITED
COMPANY,
DEFENDANTS.
§
§
§
§
§
'§
§
§
§
§
§
§
CIVIL
ACTION
NO
. 3:09-CV-0988-F
RECEIVER'S
REPORT
OF WORI(
PERFORMED
IN NOVEMBER 2010
The Receiver submits this Receiver's Report
of
Work Performed in November
20
I 0 (the
"Report") to inform the Court
of
the Receiver's progress in carrying out his duties under this
Court's
Order Appointing Receiver (the "Receiver Order") and other related orders. The Report
is drafted in outline form below, organized
by
goal-oriented tasks, to facilitate a clear
understanding
of
the
work
performed by the Receiver and his counsel at Gardere Wynne Sewell
LLP ("Gardere") from
November
24,2010
through November 30, 2010.
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 13 of 17 PageID 4494
Case 3:09-cv-00988-F Document
191
Filed 12/30/10 Page 2 of 6 PagelD 4462
WORK
PERFORMED
BY
THE
RECEIVER
AND
GARDERE
ON
BEHALF
OF THE
RECElvrm
FROM NOVEMBER 24,2010 THROUGH NOVEMBER 30,2010
A.
Working
relating to the Receivership Assets.
1. Worl" relating to
the
Receivership Assets
that
are
monetary
funds.
a.
Work
relating to identifying
the
monetary
funds.
1.
The Receiver and Gardere collected account information and
account documents from individuals with information related
to
the "Receivership Parties," "Receivership Assets," and
"Receivership Documents," as those terms are defined
in
the
Receiver Order. Specifically, the Receiver and Gardere requested,
and in some instances obtained, financial information from Sid
Chesnin, Martin Thomas, Gary Lyon, James Eckels, Joshua Cox,
Jeff
Baron,
Jeff
Harbin,
Jeff
Hall, Ray Urbanik, Dean Ferguson,
Don Ham, and others.
11.
Gardere initiated a review
of
the financial documents collected in
order
to
identify monetary funds subject
to
the Receiver
Orcier.
111.
Gardere strategized on contacting institutions holding monetary
funds subject to the Receiver Order, having
those
fund
s
temporarily frozen, and making the Receiver able to access those
funds.
b.
Work
relating to obtaining control over
the
monetary
funds.
1. Work relating t · btaining cont
rol
over
ti1<;
domestie
1ll0ne(
ftlY
fWlds.
1) Gardere researched federal case law and statutes regarding
the Receiver's jurisdiction over Receivership Assets
residing outside the Northern District
of
Texas. Gardere
developed a strategy
to
comply with 28 U.S.C. § 754,
wbich..requires the Receiver, within
'ten
days
of
entry
of
the
Receiver Order, to
me
the Receiver Order and Original
Petition in all districts in which Receivership Assets
are
believed to reside. Gardere worked
to
locate the
Receivership Assets and Receivership Parties, including the
creation
of
a chart comprised
of
Receivership Parties'
corporate addresses, registered
'tg~nls
,
and applicable
judicial district. Gardere
i lentiiied fifteen judicial districts
in which Receivership Assets andlor Receivership Parties
are located. Gardere prepared filings
of
miscellaneous
actions for all identified jurisdictions, with Receiver Order
and Original Petition attached, for all judicial districts
RECEIVER'S
REPORT
OF
WORK PERFORMED
IN
NOVEMBER
20.
10
Page
2
Case 3:09-cv-00988-F Document 193 Filed 12/30/10 Page 14 of 17 PageID 4495
Case 3:09-cv-00988-F Document
191
Filed 12/30/10 Page 3 of 6 PagelD 4463
where Receivership Parties and Receivership Assets
are
believed to
be
located.
2) Gardere corresponded with financial institutions holding
Receiver Assets, served copies
of
the Receiver Order, and
inquired into the proper procedure
to
take control of
accounts.
11.
Work re
Jati
.
ng
Lo
obtaining control over the oon-d meslic monetary
funds.
1)
Gardere identified and researched legal issues regarding
Receivership Assets located in the Cook Islands, and
obtaining jurisdiction over such assets. Gardere researched
federal case law and statutes for establishing jurisdiction
over such Receivership Assets. Gardere researched the
Receiver's jurisdiction and control over property outside
the United States.
2) The Receiver and Gardere began formulating a strategy
for
consolidating foreign Receivership Parties into domestic
Receivership Parties.
2.
Work
relating to the Receivership Assets that
are
non-monetary assets.
a.
Work
relating
to
identifying the non-monetary assets.
1.
There were well in excess
of
200,000 domain names that qualify
as
Receivership Assets. The Receiver and Gardere worked
successfully with Veri Sign, Inc.
to
transfer those names from their
old registrar, Ondova Limited Company (in Bankruptcy),
to
a new
registrar, Fabulous.com.
11.
The Receiver reviewed VeriSign's emergency motion
to
vacate
and modify the Receiver Order. The Receiver communicated with
the Trustee Daniel Sherman and his counsel Ray Urbanik,
as
well
as Damon Nelson (Manager
of
Ondova Limited Company),
regarding VeriSign's emergency motion to vacate and modify the
Receiver Order. The Receiver communicated with VeriSign's
counsel Eric Schnabel, Jessica Mikhailevich, and Robert Mallard
regarding the same, as well
as
the transfer
of
the domain names
to
Fabulous.com.
Ill.
The Receiver and Gardere prepared for and participated
in
the
hearing on VeriSign's emergency motion
to
vacate and modify
the
Receiver Order. Gardere also reviewed and prepared proposed
revisions to VeriSign's proposed order on its emergency motion to
modify the Receiver Order. Gardere communicated with
RECEIVER'S REPORT
OF
WORK
PERFORMED
IN
NOVEMBER 2010
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VeriSign's counsel regarding the transfer
of
domain names
and
VeriSign's emergency motion
to
vacate and modify the Receiver
Order. The Receiver and Gardere then worked with Fabulous.com
to ensure that it would take direction from the Receiver concerning
the domain names after their transfer.
b.
Work
relating to managing the non-monetary assets.
i. Gardere formulated a strategy
to
manage privacy issues concerning
ownership
of
the domain names.
11.
Gardere formulated a strategy for reducing the domain name
portfolio by not renewing certain money-losing domain names and
thereby preserving Receivership Assets.
lll.
Gardere handled several operational issues concermng
maintenance
of
the domain names.
iv. Gardere identified and developed strategies for issues regarding
alleged expirations
of
domain names and the release
of
domain
names based on Uniform Domain-Name Dispute-Resolution
Policy ("UDRP") claims.
B. Expenses Flowing Out.
1.
Work
relating to
payment
of
immediate debts. Gardere identified
imm
ediate
debts owed (and to whom)
by
the Receivership Parties, such
as
rent, and worked
to pay such debts.
2.
Work
relating to efforts to provide
Mr.
Baron
with daily living expenses.
The Receiver and Gardere worked to ensure Mr. Baron had adequate funds
from
the receivership to pay for his daily living expenses.
3.
Work
relating
to
management
of
and
resolution
of'
UDRP claims.
a. Gardere assessed the impact
of
the Receiver Order on UDRP claims.
b. Gardere began developing a strategy for responding to and dealing with
UDRP claims and pending trademark litigation.
4.
Work
relating
to
management
of
pending lawsuits.
a. Gardere began identifying pending litigation matters involving
Receivership Parties and determining a going-forward litigation strategy,
including stays in various matters.
b~
Gardere contacted counsel for parties with pending claims to inform them
of
the Receiver Order's stay
of
such claims.
RECEIVER'S RE
PORT
OF
WORK PERFORMED
IN
NOVEMBER
2010
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Filed 12/30/10 Page 5 of 6 PagelD 4465
5.
Work
relating to Post-Receiver Professionals.
a. The Receiver and Gardere began formulating a strategy for retaining
or
dismissing various employees, contractors, and professionals
of
Receivership Parties.
b. The Receiver and Gardere began formulating a strategy for retaining
an
accountant
as
a hired professional
to
assist the Receiver.
C. Miscellaneous
Work
a.
Work
relating
to
initial understanding
of
the Receiver Order.
1.
The Receiver and Gardere reviewed the Receiver Order
and
all
motions relating
to
the appointment
of
the Receiver. Gardere
began developing an overall strategy for compliance with the
Receiver Order.
ii. The Recei ver corresponded with interested parties and their
counsel (such
as
Martin Thomas, Gary Lyon, James Eckels, Joshua
Cox, Jeffrey Baron, Jeff Harbin, Tine Faasili Ponia, Samantha
Eisner, and several other individuals),
as
well
as
counsel for
Trustee Ray Urbanik, regarding entry
of
the Receiver Order and
implementation thereof.
h.
Work
relating
to
the Receiver's bond. Gardere prepared
the
Receiver's
Bond, acquired a surety for the bond, and posted the bond.
2.
Work
regarding clarifying additional ambiguities
of
the Receiver Order.
a. Gardere began preparation
of
a motion
to
clarify the Receiver Order,
in
order
to
explicitly include Novo Point, LLC and Quantec, LLC (entities
discussed at the hearing on VeriSign's emergency motion to modify the
Receiver Order) in the Receiver Order's definition
of
Receivership Parties.
b. Gardere began preparation
of
a motion to clarify the Receiver Order,
in
order to explicitly include additional entities controlled
by
Baron (such
as
Iguana Consulting, LLC, Javelina, LLC, Southpac Trust Limited, and
Quasar Services, LLC) in the Receiver Order's definition
of
Receivership
Parties. Gardere worked to identify entities which should be included
in
such motion.
c.
Gardere began preparation
of
a motion
to
clarify the Receiver Order,
in
order to explicitly exclude
ID
Genesis from the Receiver Order's
definition
of
Receivership Parties.
RECEIVER'S REPORT
OF
WORK PERFORMED IN NOVEMBER 2010 Page 5
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Filed 12/30/10 Page 6 of 6 PagelD 4466
3.
Work
related to the bankruptcy case.
a. The Receiver and Gardere took steps
to
determine the Receiver's role
going forward in the related bankruptcy case before Judge Stacey
O.
C.
Jernigan, styled
In
re
Ondova Limited Company, Case No. 09-34784-S0J-
11, In the United States Bankruptcy Court for the NOlthern District of
Texas, Dallas Division.
b. The Receiver and Gardere communicated with the Trustee, Daniel
Sherman, and the Trustee's counsel, Ray Urbanik and Dennis Roossien
of
Munsch Hardt Kopf and Harr, P.C., to coordinate strategy for controlling
Receivership Assets and Receivership Parties and
to
gain institutional
knowledge regarding same from the Trustee.
Respectfully submitted,
lsi
Barry M Golden
Barry M. Golden
Texas State Bar No. 24002149
Peter
L.
Loh
Texas Bar Card No. 24036982
GARDERE WYNNE SEWELL
LLP
1601
Elm Street, Suite 3000
Dallas, Texas 75201
(214) 999.4667 (facsimile)
(214) 999.3000 (telephone)
bgolden@gardere.com
ploh@gardere.com
ATTORNEYS
FOR
THE
RECEIVER,
PETER
S.
VOGEL
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy
of
the foregoing document was served via
the
Court's ECF system on all counsel
of
record on December 30, 2010.
RECEIVER'S REPORT
OF
WORK PERFORMED
IN
NOVEMBER 2010
lsi
Peter
L.
Loh
Peter
L.
Loh
Page 6
