IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS EL PASO DIVISION LEAGUE OF UNITED LATIN

AMERICAN CITIZENS, INC. (LULAC) Plaintiff, v. TEXAS LEAGUE OF UNITED LATIN AMERICAN CITIZENS, LINDA CHAVEZ, Individually, BEA MARTINEZ, Individually, and JOEY CARDENAS, Individually Defendants, § § § § § § § § § §

Civil Number EP:12-cv-0296 Oral Argument Requested

PRELIMINARY INJUNCTION On the 20th day of August, 2012 came on before the Court the above entitled and numbered cause. Plaintiff, the LEAGUE OF UNITED LATIN AMERICAN CITIZENS

(hereinafter sometimes referred to as “LULAC”), appeared by representative and by attorneys of record, Luis R. Vera, Jr., Manuel G. Escobar, Jr. and Ray Velarde, and announced ready. Defendants, TEXAS LEAGUE OF UNITED LATIN AMERICAN CITIZENS, a Texas nonprofit corporation (hereinafter sometimes referred to as “TX LULAC”), FLORINDA CHAVEZ aka LINDA CHAVEZ who resides at 5400 Jeffburn Cove, Austin TX 78745, BEATRICE ALBA MARTINEZ aka BEA MARTINEZ who resides at 7007 Arboreal, Dallas, TX 75231 and JOE CARDENAS, III aka JOEY CARDENAS who resides at P.O. Box 29, Louise, TX 77455, appeared in person and by attorney of record, Robert W. Wilson and Mark Anthony Sanchez, and announced ready. For purposes of this Preliminary Injunction, LULAC of Texas that has operated in Texas since 1929 as an association and since 1931 as a Texas non-profit corporation, is referred to as LULAC. The Court finds that the parties hereto announced that they had reached agreement with regard to the matters set forth herein, and requested that the Court enter a preliminary injunction in accordance therewith.

The Court finds that the Plaintiff’s pleadings are in due form and contain all the allegations, information, and prerequisites required by law. All persons entitled to citation were properly cited. The Court further finds that the parties have agreed to the entry of a preliminary injunction as evidenced by their signature below. IT IS ACCORDINGLY, ORDERED, ADJUDGED AND DECREED that: 1. From July 27, 2012 forward, the Defendants and their agents, servants, employees, attorney, representatives, successors and assigns, and all persons, firms, corporations or other business entities in active participation with the Defendants are hereby TEMPORARILY ENJOINED from using the name “League of United Latin American Citizens”, “LULAC”, and/or the “LULAC shield logo” or any other name or mark confusingly similar to “League of United Latin American Citizens”, “LULAC” and/or the “LULAC shield logo”, including but not limited to “Texas League of United Latin American Citizens”, “Texas LULAC”, or “TX LULAC”. 2. With the exception of the corporate documents, bylaws and corporate filings filed with the Texas Secretary of State all promotional material or advertising, in possession or control of defendants TX LULAC, Inc., and individual defendants Linda Chavez, Bea Martinez, and Joey Cardenas are Ordered not to be used by the Defendants for any purpose whatsoever and the Defendants are Ordered not to disseminate any document or material in their possession or control including all promotional material, advertising, all copies and reproduction with the name “League of United Latin American Citizens”, “LULAC”, and/or the “LULAC shield logo” or any other name or mark confusingly similar to “League of United Latin American Citizens”, “LULAC” and/or the “LULAC shield logo”, including

but not limited to “Texas League of United Latin American Citizens”, “Texas LULAC”, or “TX LULAC”. 3. Defendants, Texas League of United Latin American Citizens, Inc. (TX LULAC), together with individual defendants, Linda Chavez, Bea Martinez, and Joey Cardenas and their agents, servants, employees, attorney, representatives, successors and assigns, and all persons, firms, corporations or other business entities in active participation with the Defendants are hereby and TEMPORARILY ENJOINED from making any negative comment or otherwise derogatory or disparaging statements about Plaintiff LULAC and its officers, directors, agents, servants, employees, attorneys, representatives, successors and assigns. 4. Defendants and their agents, servants, employees, attorney, representatives, successors and assigns, and all persons, firms, corporations or other business entities in active participation with the Defendants are hereby and TEMPORARILY ENJOINED from engaging in unfair competition such as forming any other organization that has a similar name or logo as LULAC, using LULAC’s donors and contributors lists from the local, district, state or national levels and/or contacting the LULAC Corporate Alliance with the goal of raising funds for a Hispanic organization, contacting LULAC’s members and/or using LULAC membership lists, email lists or LULAC events at the local, district, state or national levels to solicit membership for a separate Hispanic organization, including but not limited to organizations named “League of United Latin American Citizens”, “LULAC”, “Texas League of United Latin American Citizens”, “Texas LULAC”, or “TX LULAC” or any other organization with a name or mark confusingly similar thereto.

5.

Defendants, TX LULAC, CHAVEZ, MARTINEZ and CARDENAS, and their respective agents, servants, employees, attorneys, representatives, successors and assigns, and all persons, firms, corporations or other business entities in active participation with the Defendants shall immediately take any and all steps and actions as are necessary to voluntarily dissolve the TX LULAC, a Texas non-profit corporation, created by Defendants CHAVEZ, MARTINEZ and CARDENAS, including but not limited to filing with the Texas Secretary of State of any and all documents required to dissolve said corporation.

6.

Defendants, TX LULAC, CHAVEZ, MARTINEZ and CARDENAS, and their respective agents, servants, employees, attorneys, representatives, successors and assigns, and all persons, firms, corporations or other business entities in active participation with the Defendants shall release, and hereby release all bank accounts opened by or on behalf of the Texas LULAC to the Plaintiff LULAC, including but not limited to accounts maintained at Capital One Bank. Defendants will provide a sworn statement that all information in their possession, custody, or control has been disclosed to the Audit Committee by September 1, 2012. IT IS FURTHER ORDERED that the Defendants TX LULAC, CHAVEZ, MARTINEZ and CARDENAS, and their respective agents, servants, employees, attorneys, representatives, successors and assigns, and all persons, firms, corporations or other business entities in active participation with the Defendants deliver to Plaintiff LULAC, on or before September 1, 2012, a sworn inventory of all funds raised for and on behalf of “Texas League of United Latin American Citizens”, “Texas LULAC”, or “TX LULAC” and funds solicited and received from members of the Plaintiff LULAC.

7.

This Court retains jurisdiction of this matter as it relates to rendering a final judgment and Permanent Injunction in this case.

It is so ORDERED. Signed on the 20th day of August, 2012.

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