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IN THE CHANCERY COURT OF RHEA COUNT MICHAEL Lo CRAIN and his wife, ) NAOMI CRAIN, Plailltiffs V. NATIONAL ASSOCIATION OF CHRISTIAN ATHLETES, Defendant. NO。 /′ ´ //グ COMPLAINT Michael L. Crain and Naomi Crain show the following as their Complaint: i. Mr' and Mrs. Crain are residents of Fairfax, South Carolina. The Defendant is a Delaware Corporation authorized to operate in Tennessee. Service may be had on the Defendant through its registered agent, Vance Berger, at370 Fort Bluff Camp Road in Rhea County. COUNT ONE: BREACH OF PROMTSSORY NOTE OWED TO MICHAEL L. AND NAOMI CRAIN 2. On or about February 1,2010, the Defendant executed and delivered to Mr. and Mrs. Crain a promissory note whereby the Defendant promised to pay them the principal sum of Three Hundred Ten Thousand Dollars ($300,000.00), together with interest thereon at the rate of nine percent (9%) per annum. A copy of the promissory note is annexed hereto as Exhibit A. 3. The Defendant has defaulted in payment of said promissory note, and there is presently due and owing to Mr. and Mrs. Crain the amount of $138,979.58. Despite demand from Mr. and Mrs. Crain, the Defendant refuses to pay installments as required under the promissory note. 4. The promissory note provides for the collection of reasonable attorneys' fees and costs resulting from the collection or enforcement of the promissory note. &MASTER`δ

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Page 1: Courthouse News Service – Probably the best news site in

IN THE CHANCERY COURT OF RHEA COUNTY,TENNESSEE

MICHAEL Lo CRAIN and his wife, )NAOMI CRAIN,

Plailltiffs

V.

NATIONAL ASSOCIATION OFCHRISTIAN ATHLETES,

Defendant.

NO。 /′ ど́/´ ノ//グ∂

COMPLAINT

Michael L. Crain and Naomi Crain show the following as their Complaint:

i. Mr' and Mrs. Crain are residents of Fairfax, South Carolina. The Defendant is a Delaware

Corporation authorized to operate in Tennessee. Service may be had on the Defendant through

its registered agent, Vance Berger, at370 Fort Bluff Camp Road in Rhea County.

COUNT ONE: BREACH OF PROMTSSORY NOTE OWED TOMICHAEL L. AND NAOMI CRAIN

2. On or about February 1,2010, the Defendant executed and delivered to Mr. and Mrs.

Crain a promissory note whereby the Defendant promised to pay them the principal sum of

Three Hundred Ten Thousand Dollars ($300,000.00), together with interest thereon at the rate of

nine percent (9%) per annum. A copy of the promissory note is annexed hereto as Exhibit A.

3. The Defendant has defaulted in payment of said promissory note, and there is presently

due and owing to Mr. and Mrs. Crain the amount of $138,979.58. Despite demand from Mr. and

Mrs. Crain, the Defendant refuses to pay installments as required under the promissory note.

4. The promissory note provides for the collection of reasonable attorneys' fees and costs

resulting from the collection or enforcement of the promissory note.

&MASTER`δ

Page 2: Courthouse News Service – Probably the best news site in

COUNT TWO: BREACH oF CONSULTING AGREEMENTMADE WITH NAOMI CRAIN

5. On or about January 10, 2010, the Defendant also executed that certain Agreement for

Consulting Services ("Consulting Agreement") with Naomi Crain under which she performs,

from time to time as may be required or requested, various consulting services for the Defendant.

In exchange, the Defendant is to pay Mrs. Crain the sum of $1,500.00 per month until an event

of termination occurs. A copy of the Consulting Agreement is annexed hereto as Exhibit B.

6. The Consulting Agreement had an initial term of five years but under its terms has

continued from year to year thereafter in the absence of an event of termination. The events

allowing termination are set forth in the Consulting Agreement, but no such event has taken

place such as would excuse fuither performance by the Defendant.

7. On or about luly 23, 2018, the President of the Defendant provided written notice of its

intent to cease making payments under the Consulting Agreement, claiming that Mrs. Crain

failed to provide any consulting services as it required. A copy of the correspondence is attached

as Exhibit C. This was the first notice of any claimed failure to perform on Mrs. Crain,s part, and

Mrs. Crain avers not only that she has remained willing and able to provide consulting services

but also that the Defendant has not made requests for services which she has not performed.

8. The actions of the Defendant constitute a breach of the Consulting Agreement as it

amounts to a wrongful termination of such Consulting Agreement. Under its terms, Mrs. Crain

may recover reasonable attorney fees and costs in enforcing the Consulting Agreement or

recovering damages for the breach of the Agreement.

WHEREFORE, Vfu. and Mrs. Crain demand judgment against the Defendant under Count

1 in the amount of $138,979.58, plus an award of prejudgment interest, attorney fees and related

costs to be determined by the Court. Mrs. Crain demands judgment against the Defendant under

Page 3: Courthouse News Service – Probably the best news site in

Count 2 for an award of damages to be proven at the trial of this matter, plus an award of

prejudgment interest, attorney fees and related costs to be determined by the Court.

BELL&HOBBS

P.O. Box 11308Chattanooga, TN 3740I(423) 266-6461 I F ax 7 5 6-8521Attomeys for Michael L. and NaomiCrain

COST BOND

I, R. Dee Hobbs, Attorneys for Michael L. and Naomi Crain, hereby acknowledge and

bind myself for the payment of all non-discretionary costs that may be adjudged herein against

my clients, in the event the principals do not pay them.

witness my hand tr,i, fl a", ", Sr 1g.,2018.

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