EXHIBIT 3


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11.

13.
14.

15.

a Letter Agreement in connection with their application, and a true copy of this is
attached hereto as Exhibit 3. The request made by the plaintiffs included a request
for an extension of time, and subsequently the FEC granted this time extension.
In 2008, the Democrat nominee for president received 69,498,215 votes; the
Republican nominee for president received 59,498,240; the Libertarian nominee
for president received 523,713 votes. The average of the two major party votes
is 64,498,228. The Libertarian nominee thus received 523,713/64,498,228, or
-81% of the average vote of the major party candidates.

This election cycle, the major party candidates will each receive $92,241,400.00.
Based on this, Plaintiffs are entitled to receive .81% of that number, which is
$747,115.34. The FEC has failed to distribute any funds to Plaintiffs, and has
taken the position that Plaintiffs are ineligible for funding, notwithstanding the
plain language of §9004 (a)(2)(A).

COUNT ONE
Declaratory and Injunctive Relief
Plaintiffs incorporate and restate the allegations in Paragraphs | through 12 above.
An actual dispute has arisen between Plaintiffs and Defendant, namely that
Plaintiffs claim they are entitled to pre-general election funding as set forth above,
the Defendant claims Plaintiffs are ineligible for such funding. A judicial
determination of this dispute is necessary.
Pre-election funding and post-election funding serve entirely different purposes.
Unless Plaintiffs receive their pre-election entitlement before the general election,

it is of little use, because the election will have already taken place. The amount

VERIFIED COMPLAINT - Page 5



VERIFICATION

I, James P. Gray, declare as follows:

1.

2.

I am a party to this action and the nominee of the Libertarian Party for
election to the office Vice President of the United States.

either have personal knowledge of the truth allegations of the complaint or
am informed of the truth of the allegations and believe them to be true.

On that basis, I verify under penalty of perjury of the laws of the United
States of America that the factual statements in this Complaint are true and
correct. Executed at Costa Mesa, California on September 26, 2012

to 2G

1AMESP. RAY


EXHIBIT 2


EXHIBIT 1


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of the funding to which plaintiffs are presently entitled is so significant that it
could make the difference between winning and losing. Even more likely is the
impact the receipt by plaintiffs before the general election of pre-election funding
would have on plaintiffs’ subsequent entitlement to post-general election funding.
Post general-election funding requires that the Johnson/Gray ticket receive a
certain threshold percentage of votes in the general election, and the likelihood of
Plaintiffs meeting this threshold is dramatically greater if they receive the pre-
election funding in time to spend it to support their candidacy.

16. Unless an injunction issues mandating that the FEC disburse the pre-general
election funding to which the Plaintiffs are entitled, they will be gravely and
irreparably harmed and no amount of money could adequately compensate them.

17. Accordingly, Plaintiffs are entitled to a mandatory injunction directing the
immediate payment of the pre-election funds they have applied for, such that

payment be received in advance of the general election this November.

RELIEF REQUESTED
WHEREFORE, plaintiffs pray for a judicial declaration that they are entitled to
pre-general election campaign funding, and for a mandatory injunction directly the FEC
to immediately disburse to plaintiffs the sum of $747,115.34. Further, plaintiffs pray
for their costs of suit, and for such other and further relief as the Court may deem just
and equitable.

Respectfully submitted,

September 24, 2012 JENSEN & ASSOCIATES, APC
Crial Rawyers {

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PAUL ROLF JENSEN
Attorneys for Plains



Anthony Herman, Esq.
8 May 2012
Page two

In summation, we submit that the draflsmen of §9004(a)(2) intended the five percent threshold to
apply to subsection (B) and not subsection (A) and accordingly made this clear by the use of
different language in the two provisions. Put differently, it would render subsection (A) utterly
meaningless to apply the 5% threshold to its grant of funds, because subsection (B) governs all
situations when the candidate received 5% or more in the preceding election. Ergo, subsection
(A) only has meaning in circumstances when the minor pasty candidate received /ess than 5%; no
other reading of subsection (A) allows it to have any applicability. Statutes must be read so as to
give them effect, and interpretations that have the effect of vitiating the effect of a statute are
improper. Wats v. Alaska, 451 U.S. 259, 267 (1981); Stewart v. Smith, 673 F.2d. 485, 492 (D.C.
Cir. 1982).

Accordingly, and based on the plain meaning of §9004(a)(2), Governor Johnson is entitled to
funding at this time.

In 2008, the Democrat nominee received 69,498,215 votes; the Republican nominee received
59,498,240; the Libertarian nominee received 523,713 votes. The average of the two major party
votes is 64,498,228. The Libertarian nominee thus received 523,713/64,498,228, or .81% of the
average vote of the major party candidates.

This cycle, the major party candidates will each receive $92,241 ,400.00. Based on this,
Governor Johnson's position is that he is entitled to receive .81% of that number, which is
$747,115.34. The Governor, by this letter, hereby requests this amount be disbursed to his
campaign forthwith for the reasons set forth above.

Please be so kind as to contact the undersigned immediately to discuss this request.

Sincerely yours,
it be

PAUL ROLF JEN;

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Paul Rolf Jensen, CSB #154013
Erin Boeck, CSB #273463
JENSEN & ASSOCIATES, APC
Nal TWYETS .
650 Town Center Drive, Twelfth Floor
Costa Mesa, California 92626
(714) 662-5528

Attorneys for Plaintiffs

Gnited States District Court
Central District of California

GARY E. JOHNSON; JAMES P. GRAY ) Civil Action #
and GARY JOHNSON 2012, INC.,
, VERIFIED COMPLAINT FOR
Plaintiff RECLARATORY AND INJUNCTIVE

THREE-JUDGE COURT

vs.

FEDERAL ELECTION COMMISSION,
Defendants.

PRELIMINARY STATEMENT
1. This is an action for declaratory and injunctive relief against the United States
Federal Election Commission (“FEC”) to enforce federal law concerning
financing of presidential election campaigns, and specifically to compel the FEC
to make disbursement of pre-general election funding as provided by statute. 26
U.S.C. §9011 (b) (2) provides that this suit be heard and determined by a court
comprised of three judges in accordance with 28 U.S.C. §2284.

JURISDICTION AND VENUE

VERIFIED COMPLAINT - Page 1



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2:

VI. As provided at 11 CFR §9003,1(b\4), | and my authorized commuitice(s) agres 10
‘keep and furnish to the Commission all documentation rotating to disburscments
and reosipts including any books, records (inching bank records for all
secounts), all documentation required by this section (including those required to
be maintained under 11 CFR §9000.5), and other information that tho
Commission orgy request. Lf] or my enthorized commuttee(s) maintains or uses
computerized information containing ary of the cetcgortes of dave listed in 11
CER §9003.6(a), the cammittee will provide computerized magnetic media, such
axa magnetic tapes or magnetic diskettes, containing the computerized information
at the times specified in 1} CFR §9007.1(bX(1) that mect the requirements of 1!
CFR §9003.6(b). Upoa request, documentation explaining the computer system's
software capabilities shall be provided and such personnel as are neccesary to
explain the operation of the computer system's software and the
information prepared of maintained by the cormmitme(s) shall be made wvailsble.

VIL As prescribed at 11 CFR §9003,1(6X5), { and my muthorized committee(s) wil!
obtain end furnish to the Commission upon request all documentation relating to
funds reecived and disbursements made on my bebulf by other political
committees sad organizations associated with mc.

VUL  Tand my authorized commitme(s) shall permit an audit and exemination pursuant
to 1) CPR §9007 af all receipts and disbursements, incloding those made by me,
ai] authorized commmittce(s) and any agett or person authorized to make
expenditures on my behalf or on behalf of my authorized committee(s). {and my
athorized committee(s) shall also provide any material required in connection
with an wudil, investigation, ar examination. ] end mty authorized cammittee(s)
thal facilitate the audit by making xveilablo in ove central location, office space,
records and such personnel as are necessary to conduct the sudit and examination,
and shall pay any smounts required to be repaid under 11 CPR part 9007,

UX Pursuant to 11 CFR §9003.1(b)(7), the person listed below is entitled t recsive
psynients from the fund oa my behalf, which will be deposited into the listed
depository, which [ hsve dexignated sa ths campaign depository. Any change in
the mformation required by ts paragraph shal) not be effective until submitcd to
the Coommission In a leues signed by me or the Treasurer of my autbarized
principal campaign committes,

Name of Person: = Chet Goodwin
Mailing Address, 280 South 400 Went Suita 220
Salt Lake City, Utah 84101,

Designated
Address: 455 East South Temple
South Lake City, Utsh £4111

Nams of Account: Gary Johnson 2012
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Jane 11, 2012

Caroline C. Hunter, Chairman
Federal Election Commission
999 5 Suvet, N.W,
Washington, D.C, 20463

Dear Madam Chairman:

As presidential and vice-presidentia) candidate secking to become eligible wo receive
Presidential genera) election funds, | certify sad agree to the following provisions a3 presoribed 2
11 CFR §9003.1 and 11 CFR §9003.2.

1 In accordance with 11 CFR §9003.1{a)(Z) and 11 CFR §9003.2(b), | cortify that
we are setking the nominees of the Libertarian Party for clection to the Office of
President and Vice-Presidem, respectively, and have qualified to appcar on the
ballots for the genera] election in ten or more States, and hereby request pursuant
to 1] CFR §9003.1(ax(2) that you extend the deadline for our submission of dis
request to the date you receive this Ketter.

TL In acoordmace with 1) CFR §9003.1(b)(1), J acknowledge that ] have the berden.
of proving that disbursements mado by me, and any of my authorized
comonittee(s) of agrots #f6 qualified caupaign expenses a8 defined at 11 CFR
§9003.5.

UF, Pursumat w 11 CER §9003.1(b\(2), 1 and my authorized committos(s) will comply
with the documentation requireroents set forth in 11 CFR §9003.5.

[V, Upon the request of the Commission, { znd my suthorized cormnitioe(s) will
supply an explanation of the conection between any disbursement made by me ar
cay authorized commitiee(s) and the campaign as prescribed by 11 CFR
$9003. 1(b)3).

roaintained under 1{ CFR 9003.5 and other information that dhe Commission may
Teqoest,

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JENSEN & ASSOCIATES, APC, Kin’ Buyers

650 Town Cenren Daive + Tweurtn Finow + Cosra Mesa, Ca 92626
(714) 682.5528 Voice + (714) 708-2321 Fax

Via FedEx 4874768666937

8 May 2012

3

Anthony Herman, Esq., General Counsel
Federal Election Commission

999 “E” Street, N.W.

Washington, D.C. 20463

Dear Mr. Herman,

6 na
1am counsel to former New Mexico Governor Gary Johnson and write to you on his behalf. As
you are aware, the Governor last Saturday became the nominee of the Libertarian Party for the
office of President of the United States.

In one location, your website states that no third party candidate this cycle will qualify for federal
general clection public funding, because during the 2008 cycle, no third party candidate received
5% of the vote in the gencral election. Notwithstanding this statement, it is our position that
Governor Johnson IS entitled to public funding, for the reasons | will now outline.

26 U.S.C.§9004 (a)(2A) provides that, “(t]he eligible candidates of a minor party ina
presidential election shall be entitled to payments under section 9006 equal in the aggregate to an
amount which bears the same ratio to the amount allowed under paragraph (1) for a major party
as the number of popular votes received by the candidate for President of the minor party, as such
candidate, in the preceding presidential election bears to the average number of popular votes
received by the candidates for President of the major parties in the preceding presidential
election.”

There is nothing in this subsection that imposes a 5% threshold; the next subsection is where that
floor is imposed in order to receive funding. Likewise, the language of the next subsection,
(a)(2)(B) refers to instances where the candidate was also a candidate for President in the
preceding presidential election-thus additionally differentiating subsection (A) from subsection
(B). Governor Johnson is an “eligible candidate” within the ambit of subsection (A) as that term
is defined in §9002(4) and §9003(a) and (c). With regard to the term “candidate” in §9002(2),
as opposed to “eligible candidate” in §9002(4), we believe that term is applicable only to §9004
(a)(2)(B) and not relevant to (a)(2)(A). For the same reason, we aver that the definition §9002
(7) of “minor party” is only relevant to §9004 (a)(2)(B) and not relevant to (a)(2)(A)



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10.

The scheme for pre-general election funding for third party candidates is set forth
in 26 U.S.C.§9004 (a)(2)(A)! which provides, in its entirety, that, “[t]he eligible
candidates of a minor party ina presidential election shall be entitled to payments
under section 9006 equal in the aggregate to an amount which bears the same ratio
to the amount allowed under paragraph (1) for a major party as the number of
popular votes received by the candidate for President of the minor party, as such
candidate, in the preceding presidential election bears to the average number of
popular votes received by the candidates for President of the major parties in the
preceding presidential election.” Johnson is an “eligible candidate” within the
ambit of this section, as that term is defined in §9002(4) and §9003(a) and (c).

On May 8, 2012, through counsel’, plaintiffs applied by letter to the FEC for
public funds for the general election, asserting their entitlement to such funding
under §9004 (a)(2)(A). It will be noted that this provision imposes no additional
requirement relating to the same presidential candidate having run in the
presidential election four years earlier. It will also be noted that the following
section, $9004 (a)(2)(B), as distinct from subsection (A) provides funding under
to candidates who do meet an additional criteria, and the funding provided in
subsection (B) is derived from a different mathematical calculation than the
funding authorized by subsection (A), and would necessarily result in much
greater funding—a much larger amount-- than under subsection (A).

On June 11, 2012, at the FEC’s request, plaintiffs sent a separate letter to the FEC
requesting funding, and a true copy of this letter is attached hereto as Exhibit 2.
Subsequently, on June 27, 2012, also at the FEC’s request, plaintiffs sent the FEC

‘All further statutory references are to 26 U.S.C., unless otherwise noted.

2A true copy of this letter is attached hereto as Exhibit 1.

VERIFIED COMPLAINT - Page 4



JUNE: 27-2012 WED 11:10 AM RTNIELSON COMPANY F,
Jun 271208690 Gray AK NO, Boi 3856335 2 P, 01/03
Jun 27 12 07:0608 Kate Prusaok 506-998-0144 p-2

Federal Election Commission
999 B Street, NW
Washington, DC 20463

Dear Commissioners:

Pursuant to 26 U.S.C § 9003 and 11 CFR. § 9003.1, this Letter Agreement certifies that
as the nominees of the Libertarian Party for President snd Vice President, we and our
authorized committees (collectively “we" or us”) agree to comply with the following
provisions set forth in 11 CFR. § 9003.1(b):

(1) We bave the burden of proving thar disbursements made by us or our egents are
qualified campaign expenses as defined in 11 C.F.R. § 9002.11.

gag 31 Ome wrth the documennision requirements set forth at 11 CER.
5.

(3) We will provide an explanation, in addition to complying with the documentation
Tequiremeots, of the coanection between any disbursements made by us and the
campaign if requested by the Commission.

(4) We will keep and furnish to the Commission aiJ documentation relating to
receipts and disbursements inchiding any books, records (including bank records for
all accounts), al} documentation required by this subchapter (incluting thooe required
to be maintained under 11 C.P.R. § 9003.5), and other information that the
Cormmission may request. If we maintain ot use computerized information contalaing
any of the categories of data listed in }| C.P.R. § 9003.6(a}, the committee will
provide magnetic or optical media containing the computerized information that
wees the requirements of 11 C.F_R. § 9003.6(b) at the times specified in 11 C.F.R §
9007.1(b)1). Upan request, documentation explaining the computer system's
‘oftware eapabitkiee will be provided. and such pessannel as are necessary 6 explain
the operation of the computer system's software aad the computerized information
prepared or maintained by the commitire will also be made available.

(5) We will obeain end furnish to the Commission upon request all documentation
relating 1 funds received and disbursemeuts made on our behalf by other political
committees and organizations associated with us,

(© We will permit am audit and examinacion pursaant to 11 C.F.R. part 9007 of all
receipts and disbursements including those made by us and any agen! or porton
authorized to make expeaditurcs on our behalf, We will facilitate the andit by making
available in one central location, office space, recards and such personnel as are

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Defendant FEC is the government agency with the obligation under the
Presidential Election Campaign Fund Act, 26. U.S.C. §9001, ef seg. to disburse

pre-general election federal funds to candidates.

FACTS

The Presidential Election Fund Act (“the Act”) was enacted in the late-1960's to
provide for federal funding of presidential general election campaigns. The Act
provides for funding for not only the two major-party candidates but for third
party candidates as well. Funding is available, under specified circumstances,
both prior to the general election and, separately, after the general election. This
lawsuit involves only the former, which is referred to herein as “pre-general
election funding”.

On May 5, 2012, Plaintiff Johnson received the nomination of the Libertarian
Party for President of the United States, and Plaintiff Gray received the
nomination of the Libertarian Party for Vice President of the United States. The
Libertarian Party, which was founded in 1971, is the third-largest political party
in the United States. In the 30 states of the union where voters are allowed to
register by party, over 282,000 are currently registered Libertarians. Hundreds of
Libertarians have won election throughout the country at the state and local levels,
and thousands of candidates have appeared on ballots seeking election. Its
nominees for President and Vice President have appeared on ballots in every
presidential election from 1972 onwards. Millions of votes have been cast for

these candidates.

VERIFIED COMPLAINT - Page 3



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10
11
12

14
15
16

18
19
20

22
23
24
25
26
27
28

ice)

This Court has jurisdiction over this case, brought under the Presidential
Campaign Funding Act, 26 U.S.C. §9001, et seq., pursuant to Section 9011 (b) (2)
thereof, which provides that “The district courts of the United States shall have
jurisdiction of proceedings instituted pursuant to this subsection.” Plaintiffs have
elected to bring this action for declaratory and injunctive relief pursuant to that
subsection to “implement this chapter”. Jurisdiction is also conveyed by 28 U.S.
C. §1331.

Venue is proper in this Court because Plaintiff James P. Gray is a resident of the
City of Newport Beach, and County of Orange, California, and thus of this
district, and under 28 U.S.C. 1391 (e) (1) (C), venue is proper where any plaintiff
resides if no real property is involved and the case is against an agency of the
United States. Defendant Federal Election Commission is an agency of the United

States.

PARTIES
Plaintiff Gary E. Johnson is the former Governor of the State of New Mexico, a
resident of that state, and the nominee of the Libertarian Party for the office of
President of the United States. Plaintiff James P. Gray is a retired judge of the
Superior Court of the State of California for the County of Orange, and is the
nominee of the Libertarian Party for Vice President of the United States. Their
authorized campaign committee is Plaintiff Gary Johnson 2012, Inc, and it is
based in Salt Lake City, Utah. The names of Johnson and Gray will appear this
November as candidates for president and vice president on the ballots of not less
than 47 states, and confirmation of the same has been received from those states,
and from the District of Columbia. These jurisdictions have 495 combined votes

in the electoral college.

VERIFIED COMPLAINT - Page 2



JUN@ I “ie | Jub Ube SiS, yn KINIELSUN Un ANY “FAK NU, BUI Sddus3 P US
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x agree that | and uy authorized committoe(s) shall coraply with the applicahic
reqdrements of 2 USC $431, et seq.; 2 USC §900), et seq.; and the
Conmnission's Regulations at 1 CFR parts 100-400, sad 9001-9012.

XL agree that | and my authorized commitee(s) shall pay any civil peoalties
inctaded in 2 conciliation agreameat or otherwise imposed under 2 USC §4373,
against me, or either of us, my authorized commitiee(s), or any agent thereof.

‘XIL Pursuant to 11 CFR §9003. 1(0}(10), any television commercial prepared oz
distributed by ms or my suthorized commnities(s) will be prepared in 9 muanmex
which ensures that the coommercia] contains or is accompanied by closed
captioning of the oral content of the commercial i be Droadcast in line 2! of the
vertical Dimking interval, or is capable of heing viewed by deaf and bearing
impaired individnals via say comparable sucosssor technology to line 21 of the

vertical blanking Interval.

{ further certify, under penalty of pexjury of the laws of the United States, that neither 1,
nor roy wuthorized commitinr(s) bas incurred, nor will it tocur, qualified campaign expenses in
excess of the aggregate payments to whith the eligible cartidates of a major party are crmitied
under 11 CFR 9004.1, {also so certify that no contributions to defy qualified campaign
expenses will be accepted by mo or my suthorized committte(s), except to the extent, if any, thet
the qualified carspaign expenses incurred exneed the aggregate payments received by me from
Use Fund under 11 CFR 9004.2.

| farther certify under penalty of perjury of the luvs of the United States that I will nat
knowingly make expenditures ftom my personal funds or from the personal finds of any
immediate family, in connection with mry campaign for the affice af President md/or Vice
President, in excess of $50,000.00 im the aggregate.

: E Noth moeny—
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Libertarian Party noxninee for
President of the United States

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Recessary to conduct the audit and cxaminstion, and will pay any amounts required
under 11 C.P.R. part 9007.

(7) Pursuant to 11 C.F.R. part 103 and 11 C.F.R. § 9005.2 the person listed below is
entided to reccive payments from ths Fund on our behalf.

Name

Mailing Address

City, State, ZIP

Such funds will be deposited into the listed depository:
Bank Naroe
Benk Address

City, State, Zip
‘The accoumt name is:

(8) We will comply with the applicable requirements of 2 U.S.C, 431 et seq., 26
U.S.C. 9001 et seq., and the Commission's regulations at 11 C.F.R. parts 100-300,
and 9001-9012.

(9) We will pay any civil penalties incleded in a concifiation agreement or ovberwise
insposed under 2 U.S.C. § 437g.

(10) We agree that my television commercial prepared or distributed by us will
contain closed captioning of the oral content af the commercial to be broadcast in line
21 of the vertical blanking interval, or bs capable of being viewed by deaf and
heaving inmpaired individuals via ny comparahls successor technology to line 21 of
the vertical blanking interval.

Additionally, pursuant to 26 U.S.C, § 9003 end 11 C_F.R. § 9003.2, and under penalty of
perjury, we certify:

(1) That we bave not incurred and will not incur qualified campaign expenses in
excess of the eggregatc payments to which the efigible candidates of a major party are
catitied under 1] CFR. § 9004.1.

(2) That no contributions to defray qnalified campaign expenses have been or will be
accepted by us exvept to the extent thet the qualified campaign expenses incurred
exceed ths aggregate payroents we received from the Fund under 1! CFR § 9004.2.

G) That the Presidential and Vice Presideutial nominces will not knowingly make
expenditures from our personal finds or the porsonal fands of our imreediate family,
in coanection with our caropsign for the office of President and Vice President of the

‘United States in excess of $50,000 in the aggregate.

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