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Todd Dotson' lawsuit against Russ Whitney 4 72. As incentive and consideration for Dotson permitting the Whitney Defendants to use his work of authorship as set out above, Whitney agreed to provide promotional information for Todd Dotson in the book and to provide attribution to him, which would be of substantial value to Dotson. 73. Before the book was published, the parties had a falling out and were engaged in the litigation described above in the 153rd District Court of Tyrant County culminating in the Settlement Agreement. Prior to the publication of the book, Defendants made it apparent that they would not include in the finished work, the promotional information for Todd Dotson as promised. As a result, Dotson withdrew his permission for Defendants to use his copyrighted work on "Wholesaling Houses for Quick Cash," or any derivatives. 74. Nevertheless, in 2003, WEG, WLG and Whitney published a book entitled Millionaire Real Estate Mentor, The Secrets to Financial Freedom Through Real Estate Investing (the "Book") purportedly authored by Russ Whitney and his "Wealth Team." WLG claims the copyright covering the entire Book. Chapter 4 of the Book, as seen on its face, clearly is derived from Todd Dotson's copyrighted "Wholesaling Houses for Quick Cash" described above, without any authority from, attribution to or promotional material relating to Todd Dotson. COUNT 1 -BREACH OF CONTRACT 75. Plaintiffs re-allege and incorporate by reference here, each of the facts and allegations contained in paragraph numbers 1-73 of this Complaint. 76. Plaintiffs have performed their obligations under the Settlement Agreement. 77. The Settling Defendants breached the Settlement Agreement. 78. Specifically, the Settling Defendants have breached paragraph 1 of the Agreement by failing to recognize Plaintiffs' protected copyrighted works, and by making and using derivative works of same. 79. As a result of the breach of the Settlement Agreement by the Settling Defendants, Plaintiffs have suffered damages, including but not limited to, lost profits, damage to good will, and lost market opportunities. Plaintiffs also seek an accounting to determine the actual amount of their damages. 80. In addition, pursuant to Section 38.001 of the Texas Civil Practice and Remedies Code Plaintiffs are entitled to recovertheir reasonable and necessary attorney's fees from Defendants for breach of the Settlement Agreement for which they now sue. COUNT 2 - COPYRIGHT INFRINGEMENT AS TO DOTSON MANUALS 81. Plaintiffs re-allege and incorporate by reference here, each of the facts and allegations contained in paragraph

numbers 1-80 of this Complaint. 82. Defendant WEG and the Mentor Defendants have infringed the copyrights in the Dotson Manuals and made derivative works of same without authorization. 83. Defendants' actions have resulted in economic injury to Plaintiffs for which they seek equitable and monetary relief in this Court. Plaintiffs are entitled to recover damages, including but not limited to lost profits, damage to goodwill, and lost market opportunities for copies of, or derivative works based upon that work sustained as a result of Defendants infringements. They are further entitled to entry of an injunction prohibiting further infringement or use of the infringing works by Defendants. 84. Defendants' acts have also resulted in the necessity of hiring counsel by Plaintiffs in order to pursue this claim and have resulted in and/or will continue to result in legal fees and costs associated with the prosecution of this claim, which Defendants should pay. COUNT 3 - COPYRIGHT INFRINGEMENT AS TO WHOLESALING HOUSES FOR QUICK CASH 85. Plaintiffs re-allege and incorporate by reference here, each of the facts and allegations contained in paragraph numbers 1-84 of this Complaint. 86. Defendants, Russ Whitney and WLG have infringed Todd Dotson's copyrighted work "Wholesaling Houses for Quick Cash" attached as Exhibit "D". Specifically, Defendants have made a derivative work of Todd Dotson's work and infringed on his copyright in that work. 87. Defendants actions have resulted in economic injury to Todd Dotson, for which he seeks equitable and monetary relief in this Court. He is entitled to recover damages, including but not limited to lost profits, damage to goodwill, and lost market opportunities for copies of, or derivative works based upon that work sustained as a result of Defendants infringements. Plaintiffs are further entitled to entry of an injunction prohibiting further infringement or use of infringing works by Defendants of any copyrighted works owned by Plaintiffs. 88. Defendants' acts have also resulted in the necessity of hiring counsel in order to pursue this claim and have resulted in and/or will continue to result in legal fees and costs associated with the prosecution of this claim or use of the infringing works. COUNT 4 - UNFAIR COMPETITION Reverse Palming Off and Unfair Competition 89. Plaintiffs re-allege and incorporate by reference here, each of the facts and allegations contained in paragraph numbers 1-88 of this Complaint. 90. Using Plaintiffs' copyrighted material from the Dotson Manuals in Defendants' seminar materials, among other things, and using Todd Dotson's copyrighted materials in the Book, all without properly attributing the work to Plaintiffs or Todd Dotson, and in fact, falsely claiming Russ Whitney and/or his "team" actually authored the works, constitute reverse palming off and/or unfair competition under federal law. 91. More specifically, Defendants have made false designations of origin, false or misleading descriptions of fact, and/or false or misleading representations of fact likely to, and actually, cause confusion, or mistake, or to deceive as to affiliation, connection, or association of such person(s) with another person, Dotson, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by or regarding Plaintiffs and/or have in commercial advertising or promotion, misrepresented the nature, characteristics, qualities, or origin of one's or another's goods, services, or commercial activities under 15 U.S.C.. '§ 1125(a)(1). 92. Further and/or in the alternative, Defendants (each and/or every, and/or in some several combination or conspiracy), have also or alternatively engaged in reverse palming off and other unfair competition, by using the Book in seminars, and by suggesting it, including Chapter 4, was authored by someone other than Dotson. 93. On information and belief, Defendants' actions were conducted in an effort to trade upon Plaintiffs' goodwill, and in an effort to divert business to themselves instead of Plaintiffs through confusion, mistake, and/or deception of the purchasing public. 94. These violations by Defendants are continuing in nature and proximately cause ongoing harm and damages, though those damages are difficult to calculate. 95. Plaintiffs will be irreparably harmed if the violations of Defendants are permitted to continue unabated during the pendency of this litigation. Particularly, but without limitation, Plaintiffs anticipate loss of sales, profits, and current and prospective customers; interference with the conduct of its business; injury to reputation and goodwill. 96. Plaintiffs seek issuance by the Court of an injunction on appropriate terms, as supported by evidence, pursuant to 15 U.S.C.. '§'§ 1125(a)(1) & 1116, among other things. 97. Further and/or in the alternative, Plaintiffs seek recovery of its lost profits, Defendants' profits, damages sustained by Plaintiff, costs of the action, treble damages, reasonable and necessary attorneys' fees for all trial and appellate proceedings, and such other damages or monetary relief as may be available to Plaintiffs under the law, including, without limitation, pursuant to 15 U.S.C.. '§'§ 1125(a)(1) & 1117(a) & (b), among other things. In addition, this is certainly an "unusual" case in which attorneys' fees should be awarded to Plaintiffs. 98. Pursuant to 15 U. S. C.. '§'§ 1125(c)(2) & 1118, all advertisements, promotional material, seminar material, books, and other materials in Defendants' possession bearing or containing the infringing material that is the subject of the violations; or any reproductions, counterfeits, copies, or colorable imitations thereof, and all other means of making the same, should be delivered up to Plaintiffs. COUNT 5 - TEXAS COMMON LAW UNFAIR COMPETITION 99. Plaintiff re-alleges and incorporates by reference herein each of the facts and allegations contained in paragraph numbers 1-98 of this Complaint. 100. Texas abhors the theft of one company's business by another by palming off, reverse palming off, and other methods. 101. Based on the foregoing, Plaintiffs allege Defendants have been, and are using Plaintiffs' written works in an effort to steal Plaintiffs' business for themselves. 102. Plaintiffs have been, and will continue to be, very substantially damaged by the, Defendants' acts aimed at confusion, including, on information and belief, reverse palming off and unfair competition by Defendants, through lost profits, among other things. 103. Further, Defendants have been unjustly enriched by being enabled to sell for profit a volume of products and/or services they could not otherwise have sold except by creating confusion, and/or, on information and belief, reverse palming off or other unfair competition. 104. Plaintiffs also therefore plead, either in the alternative, or cumulatively, to recover the profits made by Defendants through these efforts, and/or a reasonable royalty, particularly due to their unlawful "head start." 105. Further and/or in the alternative, Defendants' actions described above constitute malice and/or fraud, and justify substantial exemplary damages, which are sought. COUNT 6 - PREJUDGMENT INTEREST 106. Plaintiffs re-allege and incorporate by reference here, each of the facts and allegations contained in paragraph numbers 1-105 of this Complaint. 107. In addition, Plaintiffs suffered damages in that Defendants have had the use of the money owed to Plaintiffs since the date the money was due. Plaintiffs are therefore entitled to interest, on the entire sum, at the rate prescribed by law. COUNT 7 - ATTORNEYS' FEES 108. Plaintiffs re-allege and incorporate by reference here, each of the facts and allegations contained in paragraph numbers 1-107 of this Complaint. 109. As a result of the breaches and misconduct of the Defendants described above, it has been necessary for Plaintiffs to employ legal counsel and to agree to pay a reasonable and necessary attorney's fee. Plaintiffs are entitled to recover, and thus seeks here, recovery of his reasonable and necessary attorney's fees, whether at trial or in all appellate proceedings, from the Defendants under the provisions of. '§ 38.001(8) of the Texas Civil Practice & Remedies Code and under principles of the common law and other applicable statutory provisions. General Allegations 110. All conditions precedent have occurred, been met, been waived, or in some or any other fashion been satisfied. DEMAND FOR JURY TRIAL 111. Pursuant to Fed. R.Civ.P. 38(b), Plaintiffs demand a trial by jury on all issues triable of right by a jury. REQUEST FOR RELIEF WHEREFORE, Plaintiffs pray for: 1. After final trial, a Permanent Injunction against: any further breach of the Settlement Agreement by using any of the Dotson Manuals or information derived therefrom to compete with Plaintiffs; any further infringement of the Dotson Manuals or information derived therefrom; any further infringement of the materials referred to in Exhibit D; any further reverse palming off of the Dotson Manuals orthe materials described in Exhibit D. 2. An award of actual, and/or statutory damages against Defendants for acts set out above, or alternatively, an award for unjust enrichment in connection with quantum meruit and the causes of action set out above; 3. An award for reasonable and necessary attorneys fees under Section 38.001 of the Texas Civil Practice and Remedies Code and/or under the Copyright Act; 4. Punitive or exemplary damages against Defendants for their fraudulent, malicious, wanton and/or willful tortious conduct; 5. Interest, pre- and post judgment; 6. Costs; and 7. Such other and further relief as this Court may find appropriate. 4. Punitive or exemplary damages against Defendants for their fraudulent, malicious, wanton and/or willful tortious conduct; 5. Interest, pre- and post judgment; 6. Costs; and 7. Such other and further relief as this Court may find appropriate. END OF DOCUMENT Copyright 2004 by John T. Reed John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, www.johntreed.com

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