STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS 5 STAR INVESTMENTS, INC. D/B/A AG# L BEST WESTERN OF VERO BEACH

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1 STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: 5 STAR INVESTMENTS, INC. D/B/A AG# L BEST WESTERN OF VERO BEACH ASSURANCE OF VOLUNTARY COMPLIANCE Pursuant to the provisions of Chapter 501, Part II, Florida Statutes, the OFFICE OF THE ATTORNEY GENERAL has investigated 5 STAR INVESTMENTS, INC. D/B/A BEST WESTERN OF VERO BEACH (hereinafter, 5 STAR ), in connection with its th ownership, management and operation of the motel located at St., Vero Beach, FL (hereinafter, the motel. ) This Assurance of Voluntary Compliance (hereinafter, AVC ), is solely intended to resolve the investigation into whether 5 STAR, or its officers, directors, and employees, engaged in price gouging, or other unlawful and deceptive trade practices during a declared state of emergency arising from Hurricanes Frances and Jean, during Star enters into this AVC without any admission that it violated the law and for the purpose of resolution of this matter only. The Attorney General, by the signature of his Deputy, affixed hereto, does in this matter accept this AVC in termination of this investigation, pursuant to Section (6), Florida Statutes, and by virtue of the authority vested in the Office of the Attorney General by said statute. 1. NO ADMISSION OF WRONGDOING: 5 Star makes no admission of wrongdoing.

2 INJUNCTIVE TERMS 2. NO FUTURE VIOLATIONS: 5 Star agrees that it will refrain from the following acts and practices: a) Violating the provisions of Chapter 501, Part II, Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act (2003) (hereinafter, FDUTPA ); b) Price gouging during a declared state of emergency, as that term is defined in Section (3), Florida Statutes (2003); c) Failing to honor a legitimately advertised or publicized room rate, regardless of whether the advertisement appears on a billboard, coupon, AAA guidebook, Hotel.com or other authorized source; d) Failing to honor a telephonically quoted room rate; and e) Imposing terms and conditions for receiving advertised or quoted room rates, including but not limited to occupancy levels or limited availability of rooms, unless those terms and conditions are clearly and conspicuously disclosed in the advertisement or quote. 3. NO GOVERNMENTAL APPROVAL OF MARKETING PRACTICES:. The Attorney General has not approved any of 5 Star s past, current or proposed marketing or pricing practices and no portion of this AVC shall be construed as such approval.. MONETARY TERMS C. Cash Contributions: 4. DELIVERY OF CHECKS: Upon their partial execution of this AVC, 5 Star has delivered to Senior Assistant Attorney General Jeffrey M. Dikman, two cashier s checks totaling $75,000 (seventy thousand dollars and zero cents), made payable as follows: 2

3 (a) A cashier s check for $10,000 (ten thousand dollars) made payable to the Legal Affairs Revolving Trust Fund; and (b) A cashier s check for $65,000 (sixty five thousand dollars) made payable to the Legal Affairs Revolving Escrow Trust Fund; The seventy thousand ($75,000) in funds shall be referred to hereinafter as the Settlement Funds ). Upon receipt of the partially executed AVC and accompanying Settlement Funds, Jeffrey M. Dikman will sign the AVC and then forward it to the Deputy Attorney General, together with the Settlement Funds. The Deputy Attorney General has the final authority to approve or disapprove the entry of the AVC. Should the Deputy Attorney General or his authorized designee decline to authorize and execute this AVC, then, the Settlement Funds would be promptly returned. 5. BREAKDOWN OF CASH CONTRIBUTIONS: a) Ten thousand dollars ($10,000) of the Settlement Funds shall be immediately paid to the State of Florida, Office of the Attorney General, as partial reimbursement of its attorney s fees and costs of investigation. b) Sixty five thousand dollars ($65,000) of the Settlement Funds shall first be applied toward consumer restitution (hereinafter, RESTITUTION FUNDS ), for those consumers who contact the Office of the Attorney General and file affidavits supporting their restitution claims, within 60 days of the execution of this AVC (hereinafter, within the Bar Date ). The Attorney General s Office will determine the amount and validity of consumer restitution claims, in its sole discretion; 3

4 c) If the allowed consumer restitution claims filed on or before the Bar Date total less than $65,000, then any excess balance of these funds (hereinafter, excess balance ) shall be paid as follows: (i) 50% of the excess balance shall be paid to the Florida Hurricane Relief Fund; and; (ii) 50% of the excess balance shall be paid to the State of Florida, Office of the Attorney General, as additional reimbursement of its attorney s fees and costs of investigation. 6. NO PENALTIES: In consideration for the fulfillment of the various injunctive and monetary obligations set forth above, no penalties are to be imposed under this AVC. However, the Attorney General reserves the right to seek Chapter 501 penalties for any future violation(s) of the injunctive terms contained within this agreement. Additionally, the Attorney General reserves the right to seek attorney s fees and costs upon default, as defined herein, or upon any future noncompliance. 7. CLOSURE OF INVESTIGATION: Upon entry of this AVC, the Office of the Attorney General agrees to close its investigation into the activities of 5 Star concerning the following issues: whether 5 STAR, or its officers, directors, and employees, engaged in price gouging, or other unlawful and deceptive trade practices during a declared state of emergency arising from Hurricanes Frances and Jean, during The Attorney General will not file civil suit to allege these particular 2004 violations, as those issues have been amicably resolved under the terms of this AVC.. 8. FUTURE VIOLATIONS: Notwithstanding any other provision of this agreement, the parties further agree that future violations of this AVC, or of Florida law, may subject 5 Star, and its officers, directors and employees, to any and all civil penalties and sanctions provided by law. 4

5 9. PRESERVATION OF PRIVATE CLAIMS: Nothing herein shall be construed as waiver of any private rights, causes of action, or remedies of any private person against 5 Star, its officers, directors or employees. 10. CONSTRUCTION: The parties jointly participated in the negotiation of the terms which are articulated within this AVC. No provision of this AVC shall be construed for or against either party on the grounds that one party or another was more heavily involved in the preparation of the AVC. 11. NOTICES: All notices required hereunder shall be sufficient if given as follows: As to the Attorney General: Office of the Attorney General Attn: Jeffrey M. Dikman Senior Assistant Attorney General Florida Bar # North Flagler Drive Suite 900 West Palm Beach, Florida, As to 5 Star: 5 Star Investments, Inc. d/b/a Best Western of Vero Beach Attn: Vinod Patel (Registered Agent & President) th St. Vero Beach, FL EFFECTIVE DATE: This AVC shall become effective upon its execution by all persons whose signatures appear below. This document may be signed in counterpart. 5

6 5 Star Investments, Inc. d/b/a Best Wetern of Vero Beach AVC in AG# L IN WITNESS WHEREOF, 5 Star has caused this AVC to be executed as a true act and deed, this day of, STAR INVESTMENTS, INC. d/b/a BEST WESTERN OF VERO BEACH By: Vinod Patel Title: President & Director STATE OF FLORIDA) COUNTY OF PALM BEACH ) BEFORE ME, this day of, 2005, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared VINOD PATEL, who acknowledged before me that he executed the foregoing instrument for the purposes therein stated, on behalf of 5 STAR INVETMENTS, INC. D/B/A BEST WESTERN OF VERO BEACH. NOTARY PUBLIC (print, type or stamp commissioned name of Notary Public) Personally known or Produced Identification (check one) Type of Identification Produced: 6

7 5 Star Investments, Inc. d/b/a Best Wetern of Vero Beach AVC in AG# L Signed this day of, Office of the Attorney General Attn: Jeffrey M. Dikman Senior Assistant Attorney General Florida Bar # North Flagler Drive Suite 900 West Palm Beach, Florida, (Ext. 120) (FAX) Accepted this day of, George LeMieux Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL The Capitol Tallahassee, Florida (850)

STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: CHUCK S APPLIANCE AND TV. INC. ASSURANCE OF VOLUNTARY COMPLIANCE Pursuant to the provisions of Chapter 501, Part II, Florida Statutes,