STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

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1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: Case No. L HOURGLASS GANG, INC., NICKY RAE FITNESS CORP., and TASHARI NICOLE WALKER, as Owner/Manager. Respondents./ ASSURANCE OF VOLUNTARY COMPLIANCE 1. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General, Department Of Legal Affairs (hereinafter referred to as the "Department"), caused an investigation to be made into certain acts and practices of HourGlass Gang, Inc. and Nicky Rae Fitness Corp., operating under the websites (not active), (not active), (active), (not active), (not active), and (not active), and Tashari Nicole Walker (also known as "Nicole" and "Nicky") (collectively hereinafter, "Respondents"). 2. Respondent HourGlass Gang, Inc., is an inactive Florida corporation with its principal address and mailing address formerly registered on Florida Department of State Division of Corporations as E. Oakmont Dr., Miami Lakes, FL Respondent Nicky Rae Fitness Corp., is an inactive Florida corporation with its principal address and mailing address formerly registered on Florida Department of State Division of Corporations as E. Oakmont Dr., Miami Lakes, FL HourGlass Gang, Inc., and Nicky Rae Fitness Corp., own 1 Initials : ~

2 and do business under the following websites: (not active), (not active), (active), (not active), (not active), and (not active), using the following mailing address: E. Oakmont Dr., Miami Lakes, FL Respondent Tashari Nicole Walker is an individual residing at 6790 NW 186th Street, Apt 503, Hialeah, FL 33015, and is the sole owner and manager of HourGlass Gang, Inc., and Nicky Rae Fitness Corp., operating under the following website names: (not active), (not active), (active), (not active), (not active), and (not active). Social media websites associated with HourGlass Gang, Inc. and Nicky Rae Fitness Corp. include: iamnickyrae (Twitter), Dear Nicky Rae (Facebook), Exclusive So Fancy (Facebook), Tinka's Closet Fan Page (Facebook), Exclusive Rules (Youtube), iamnickyrae (Instagram), bangnation (Instagram), and tinkascloset (Instagram). Respondent Tashari Nicole Walker is the owner and manager of HourGlass Gang, Inc., Nicky Rae Fitness Corp., and all associated websites and social media sites. 4. Respondents are prepared to enter into this Assurance of Voluntary Compliance (hereafter referred to as the "A VC") without an admission that Respondents violated Florida's Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of resolution of this matter with the Department. 2 Initials:~

3 5. Pursuant to Section (6), Florida Statutes, the Department agrees to accept this A VC in termination of its investigation as to Respondents solely as to the acts and practices that were the subject of the investigation. STIPULATED DEFINITIONS & FACTS 6. The terms used herein shall have the following meanings: a. "Clear and Conspicuous" (including "Clearly and Conspicuously") means that a statement, representation, claim disclosure or term being conveyed is presented in a way that a consumer will notice and understand it. The following, without limitations, shall be considered in determining whether a statement, claim, term, or representation is clear and conspicuous: 1. Whether it is of sufficient prommence m terms of font, size, placement, color, contrast, duration of appearance, sound and speed, as compared with accompanying statements, claims, terms, or representations so that it is readily noticeable and understandable, and likely to be read by the person to whom it is directed; and if written or conveyed electronically, that it is not buried on the back or bottom, in a hyperlink, or in unrelated information or placed on the page where a person would not think it important to read; u. Whether it is presented to the person(s) to whom it is directed in a coherent and meaningful sequence with respect to other terms, representations, claims, or statements being conveyed; 3 Initials:

4 111. Whether it is near to or in close proximity to the statement, representation, claim, or term it clarifies, modifies, explains, or to which it otherwise relates; 1v. Whether it contradicts, or renders ambiguous or confusing, any other information with which it is presented; v. Whether, if it is oral, it is at an understandable pace in the same tone and volume as the sales offer; v1. Whether, it appears for a duration sufficient to allow listeners or viewers to have a reasonable opportunity to notice, read, or otherwise understand; vn. Whether the language and terms used are commonly understood by the consumer in the context in which they are used; vn1. Whether it is presented in such a way as to be free of distractions, including but not limited to sound, graphics, text or other offers that compete for the attention of the consumer; 1x. Whether, in advertising on the Internet, it is made on the same page as any other term, statement, claim or representation that it modifies, and not in a hyperlink; x. Whether the disclosure, term, condition or representation appears on the Internet on a co-registration order path in which numerous offers for various goods and services are represented to be free, and the consumer is required to accept a certain number of offers. 7. The Department and Respondents hereby agree and stipulate to the following: 4 Initials:~

5 a. During the time frame beginning at least June 2011 through the present, Respondents engaged in the business of providing various products, including corsets and weight loss supplements, to consumers in Florida and elsewhere. b. Respondents owned and operated the following websites and were responsible for the representations made and products listed for sale on them: bigcartel. com, and www. Tinka' sclosethourglassgang.com. c. Respondents promote a delivery time of 7-10 days, but many consumers did not receive the product they paid for, received the product much later than the 7-10 days represented by Respondents, or received the wrong size. Respondents do not allow returns and did not refund these customers. d. Respondents failed to provide numerous consumers with the products they paid for and also failed to provide these consumers with a refund. e. Respondents did not reply to most consumer complaints, including those received by the Better Business Bureau ("BBB"), and, in some cases, blocked consumers who complained through Respondents' websites and social media accounts. f. Respondents offer products for sale under one business name, and then bill the consumers through a different business. g. Respondents charged consumers prior to shipping products or even having the products in inventory. 8. The Department investigated allegations that Respondents committed unfair or deceptive acts toward consumers in the State of Florida and elsewhere in connection with 5 Init i a l~

6 misrepresentations of delivery time; misrepresentations of product availability made to induce consumers to purchase products from Respondents; charging consumers for products that were never delivered; failing to deliver the products ordered/advertised/represented to the consumers/and failing to honor request for refunds/returns. 9. This AVC is based upon the stipulated facts set forth herein. The Department shall not be estopped from taking further action in this matter should the facts described herein be shown to be incorrect in any material way or should this A VC not be complied with in full by Respondents. The parties agree that this AVC has been entered into based on the truthfulness of the information provided by Respondents. TERMS 10. Respondents, including their representatives, agents, employees, successors, assigns, independent contractors or any other person who acts under, by, through, or on behalf of Respondents, directly or indirectly, or through any corporate or other device shall: a. Comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes; b. Cease making any misrepresentations on Respondents' websites or in any other invoices, marketing or promotional materials about product availability and delivery time; c. Ensure that any representations made regarding delivery and product availability are accurate and clearly and conspicuously disclosed; d. Ensure consumers receive the product that was advertised and paid for and provide a timely mechanism for consumers to return products and receive a refund; e. Ensure any and all customer testimonials are true and correct and free of misrepresentations and maintain reasonable and customary supporting documentation to substantiate any customer testimonial utilized in any advertising materials; f. Cease making any misrepresentations including any misrepresentations made online, through websites, through print advertisement or marketing material or over the telephone regarding in-stock inventory, unless Respondents actually have the full amount of all inventory represented to consumers, including all of the sizes and brands represented to 6 Initials :~

7 consumers in Respondents' possession and available at the time the representation is made to consumers; g. Ensure that consumers are charged at the point of shipping and not at the point of sale; h. Ensure that consumers are charged only by the company the consumers ordered from; 1. Provide refunds within fourteen (14) calendar days to any consumer from the date the consumer requests a refund for a defective or missing product and clearly and conspicuously identify the procedure and customer support contact information for consumers to request and receive a refund; disclose to consumers whether the consumer will incur any additional expense, such as postage, shipping or restocking, if the consumer returns the product; J. Maintain a customer support telephone number and/or mail and address for consumers to file a complaint; ensure all consumer complaints are responded to within seven (7) days; cease blocking consumers from social media accounts for complaining; k. Maintain competent and reliable evidence to substantiate any claims made on any websites, social media accounts, marketing or advertising materials including, but not limited to, claims regarding product safety, health claims, product efficiency, and average delivery time; and 1. Ensure that any and all businesses/brands owned or operated by Respondents and conducting or transacting business within the State of Florida are registered with the Florida Department of State, Division of Corporations, have a Registered Agent and Registered Office in compliance with Chapter 607, Florida Statutes (20 14 ); and ensure that consumers are made aware of the principal address the business is operating out of and that the principal address is accurate on Florida Department of State Division of Corporations. BUSINESS RECORDS 11. Respondents shall preserve and retain all relevant business and financial records relating to the acts and practices at issue in this AVC and other information reasonably sufficient to establish compliance with the provisions of this A VC for two (2) years from the effective date of this A VC, and shall provide reasonable access to such documents and information to the Department upon request within three (3) days of any reasonable notice given by the Department. 7 Initial s :~

8 CUSTOMER RECORDS 12. Any personal or financial information of consumers, in the custody, control or possession of Respondents shall be securely stored in such a manner as to reasonably protect against inadvertent disclosure of consumer information. Respondents, including any representative, agents, employees, successors, and assigns, shall not, directly or indirectly, market, sell, share or otherwise disclose the name, contact information, or financial information of any consumer or customer in the care, custody or control of Respondents except as specifically allowed under State and Federal law. WRITTEN NOTICE 13. Respondents shall make the substantive terms and conditions of this AVC known to any managers, members, officers, directors, employees, agents, independent contractors, telemarketers, or any other persons that are substantially affected by this A VC and are involved in the businesses, projects and activities of Respondents or anyone else acting for or on behalf of Respondents by providing written notice of the terms of this A VC. The obligations imposed by this AVC are continuing in nature and shall apply to Respondents' successors and assigns as well as any and all new officers, employees, agents, representatives or any other persons who become engaged in the business or activities of Respondents or any new business entities created by Respondents. 14. Respondents shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as a method of avoiding the obligations and terms and conditions set forth in this A VC. 8 Initials:~

9 CONSUMER RESTITUTION 15. Consumer Restitution. A. The consumers listed in the consumer restitution spreadsheet compiled by the Parties and attached as Exhibit A have filed complaints relating directly or indirectly to Respondents with the Department, the Better Business Bureau, or another entity (the "prior complaints" or "prior complainants"). The Department provided Respondents with the consumer complaints identified in Exhibit A. Respondents reviewed and responded to the complaints and Respondents' responses are included in Exhibit A under the column entitled "Hourglass Gang, Inc. I Tashari Walker's Response." Respondents submitted an affidavit, attached as Exhibit B, attesting to the responses included in Exhibit A including refunds to all consumers who filed a complaint and did not receive the product or a refund. The Department shall not be stopped from taking further action in this matter should the responses provided by Respondents herein be shown to be inaccurate in any material way. B. Respondents shall continue to respond and in good faith attempt to resolve each consumer complaint received from and after the Effective Date to the reasonable satisfaction of Respondents and the consumers including, but not limited to, resolution via refund or providing consumers with merchandise ordered. Respondents shall use commercially reasonable efforts to commence the consumer complaint resolution process within seven (7) days of Respondents' receipt of a legitimate or bona fide customer complaint. Respondents shall provide the Department with written notice of the outcome of resolution with respect to each customer complaint that is received by Respondents within sixty (60) days following the Effective Date of this Agreement. C. To the extent that Respondents have insufficient information upon which 9 Initia ls:~

10 to resolve any prior complaint or consumer complaint received by Respondents within sixty (60) following the Effective Date, Respondents shall promptly notify the Department through Assistant Attorney General Ryann Flack, in writing, so that she may determine if additional information is available to assist Respondents in resolving such complaint in accordance with the terms of this AVC. ATTORNEYS' FEES AND COSTS 16. Respondents shall contribute two thousand four hundred dollars ($2,400.00) to the Department pursuant to Section , Florida Statutes, in payment of attorneys' fees, costs and investigative fees regarding this investigation, to be paid at the rate of two hundred dollars ($200.00) per month payable to the Department on the fifteenth (15th) of each month, beginning July 15, 2015, and continuing for twelve months thereafter. Respondents shall make the payments due hereunder payable by cashier's check or other certified funds payable to Department of Legal Affairs Revolving Trust Fund in the amount of $ The payment due hereunder, along with the original A VC bearing the notarized signature of Respondents shall be delivered to the attention of Assistant Attorney General Ryann Flack, Office of Attorney General, Consumer Protection Division, 444 Brickell Avenue, 6th Floor, Miami, FL It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC, including but not limited to, failure to make full timely payment of the two thousand four hundred dollars is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes, and will subject Respondents to a consent judgment in the amount of one hundred thousand dollars ($1 00,000.00) in civil penalties, as well as attorneys' fees and costs and any other legal or equitable relief a court of competent jurisdiction may determine is appropriate. 10 Initials~

11 CIVIL PENAL TIES 18. Subject to Respondents full, complete and timely compliance with the terms of this AVC, the Department is waiving pursuant to this settlement and in consideration of Respondents' performance hereunder the civil penalties that would otherwise be due for the acts and practices at issue under Sections or , Florida Statutes, of up to $15, per violation in consideration of the parties' entry into this AVC. 19. The original A V C bearing the notarized signatures of Respondents and the payment(s) due hereunder will be delivered to the attention of Assistant Attorney General Ryann Flack, Office of Attorney General, Consumer Protection Division, 444 Brickell A venue, 6th Floor, Miami, FL FUTURE VIOLATIONS 20. It is hereby agreed by the Parties that any failure to comply with the terms and conditions of this A VC by Respondents is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes, and will subject Respondents to any and all civil penalties and sanctions authorized by law, including attorneys' fees and costs. In the event that a court of competent jurisdiction makes a determination that a violation of any condition of this A VC has occurred, then Respondents shall be liable for a consent judgment in the amount of one hundred thousand dollars ($100,000.00) in civil penalties, as well as attorneys' fees and costs and any other legal or equitable relief a court of competent jurisdiction may determine appropriate. The Department reserves the right to seek further Chapter 501 penalties for any future violation(s) of Chapter 501, Part II, Florida Statutes. 11

12 EFFECTIVE DATE 21. The effective date of this AVC shall be the date of its execution by all Parties. Acceptance by the Department shall be established by the signature of the South Florida Bureau Chief, Consumer Protection Division, Department of Legal Affairs, Office of the Attorney General. This A VC shall become effective on the "Effective Date," which shall be the date on which the South Florida Bureau Chief accepts and executes this A VC. The receipt by the Department of any monies pursuant to the AVC does not constitute acceptance by the Department, and any monies received shall be returned to Respondents if this AVC is not accepted and fully executed by the Department. MISCELLANEOUS 22. It is further agreed that facsimile copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this agreement, and this AVC may be executed in counterparts the compilation of which shall constitute the full and final agreement. 23. Notice to any of the Parties to this AVC as may be required shall made by certified mail at the addresses set forth below unless any party notifies the other parties in writing of another address to which notices should be provided. To Respondents: Tashari Nicole Walker 6790 NW 186th Street Apt. 503 Hialeah, FL To the Department: Ryann Flack, Assistant Attorney General Consumer Protection Division Office of the Attorney General 12 Initials:

13 444 Brickell A venue, 6th Floor Miami, Florida Nothing in this A VC is to be construed as a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Respondents or any other person or entity. 25. It is a condition of each of the Department's obligations under this AVC that Respondents have fully and timely performed all of Respondents' obligations previously due under this AVC. 26. This A VC is the final, complete, and exclusive statement of the parties' agreement on the matters contained in this AVC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this AVC, the parties have not made any representations or warranties to each other, and neither party's decision to enter into this AVC is based upon any statements by the other party outside of those in this AVC. 27. It is further agreed that the parties jointly participated in the negotiation of the terms of this A VC. No provision of this A VC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this A VC than another. 28. It is further agreed that Respondents have been given the opportunity and sufficient time to retain legal counsel of their choosing and have declined to retain counsel and elected to enter into this A VC without representation by legal counsel. 29. By my signature, I hereby affirm that I have authority to execute this AVC on behalf of the party indicated and, to the extent I am acting in a representative capacity, I am acting within the scope of my authority as corporate representative, as well as in my individual 13 Initials:

14 capacity, and that by my signature I am binding myself and the businesses/parties indicated to the terms and conditions of this A VC. SIGNATURES ON SEPARATE PAGE(S) 14

15 By:C\]ifb )j[~ Tashari-Nicol'e Walker, as Owner/Manager of Hourglass GJng, Inc. and Nicky Rae Fitness Corp. BdJ?~ ~ T'asiiari Nic1 e Walker, Individually STATE OF FLORIDA ) ) ss: COUNTYOFDADE ) BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared lcuhal': U )g \ \(("r,- who produced D L as identification. She acknowledged before me that she executed the foregoing instru±nent for the purposes therein stated on the 2-/-t>...day of Na.'j, J; - w y 2."' ~ ~ \ L\. '? 7- b3 ) - 0 ~ Subscribed to before me this 21 day of b-j. Q ~ 1 ~'f-f~(t' s. DY,~ \ 2.D 2.\ stamp commissioned Notary Public) Personally known or Produced Identification / (check one) Type ofldentification Produced: ~ >ler <- l.j Ct' a -,e ';) 15 Initials:

16 OFFICE OF THE ATTORNEY GENERAL B :/2fp~ ~~?Kiziah " South Florida Bureau Chief Consumer Protection Division Department of Legal Affairs Office of the Attorney General 1515 N. Flagler Drive, Suite 900 West palm Beach, FL (561) Dated: 5 / <:{)6 / j...:s By: -~_..~ ~:::::::= =:::::::=::=:--- Ryann Flack Florida Bar No.: Assistant Attorney General Viviana Escobar Florida Bar No.: Assistant Attorney General 444 Brickell A venue, 6th Floor Miami, FL (305) (305) facsimile Dated: _j/ ~f-(js- 16 Initials: ---

17 I ' I EXHIBITB TO ASSURANCE OF VOLUNTARY COMPLIANCE STATE OF FLORIDA ) ) COUNTY OF MIAMI DADE ) AFFIDAVIT 1. My name is Tashari Nicole Walker. I am, and at all relevant times have been, a resident of the State of Florida and the Owner/Manager of Hourglass Gang, Inc., an inactive Florida corporation D/B/A Hourglassgang.com, Exclusiverules.com, Hourglassbang.com, Shop.hourglassgang.com, Tinka'sclosethourglassgang.com; and Nicky Rae Fitness, Corp., an inactive Florida corporation D/B/A Nickyraefitness.bigcartel.com (collectively "Respondents"). I have personal knowledge of the matters set forth herein and I am competent to give this affidavit. 2. This Affidavit is given pursuant to Paragraph 15A of the Assurance of Voluntary Compliance (the "A VC") entered into by Respondents with the Consumer Protection Division of the Office of the Attorney General, Department of Legal Affairs for the State of Florida under Case Number Ll4-3-l 016 to which this Affidavit is attached. 3. I attest that the responses described in "Hourglass Gang, Inc. I Tashari Walker's Response" contained in Exhibit "A" to the AVC are ttue and accurate based upon the inf01mation contained within the books and records of the Respondents, which books and records are prepared, compiled and maintained in the ordinary course of business. Specifically, such books and records reflect that Respondents shipped and delivered the products consumers ordered from Respondents and issued refunds to those consumers who did not receive the product ordered as described on Exhibit "A" to the A VC. 4. I declare that the foregoing is true and correct. Hourglass Gang, Inc., D/B/A Hourglass gang. com, Exclusiverules.com, Hourglass bang. com, Shop.hourglassgang.com, Tinka 'sclosethourglassgang.com; and Nicky Rae Fitness, Corp., D/B/A Nickyraefitness.bigcartel.com, and Tashari Nicole Walker. s01rd~ Xfr~ Tashari Nic1 1 e Walker, Owne; and Manager BEFORE ME, the undersigned authority, personally appeared, Tashari Nicole Walker, as the duly appointed Owner and Manager of Hourglass Gang, Inc., D/B/A Hourglassgang.com, Exclusiverules.com, Hourglassbang.com, Shop.hourglassgang.com, Tinka'sclosethourglassgang.com, Tinkascloset.com; and Nicky Rae Fitness, Corp., D/B/A Nickyraefitness.bigcartel.com, who is known to me to be the person described and after being duly sworn and deposed, executing the foregoing instrument, upon her personal knowledge and acknowledges to and before me that same was/is true and correct to the best of her knowledge and belief. 1'- SWORN TO AND SUBSCRIBED BEFORE ME, this 7 7 day of No.. '-l, I NOTARY PUBLIC STATE OF FLORIDA COUNTY OF MIAMI DADE o is personally known to me GV~ced a Florida D iver's License as identification identification; and did take an oath. /) Lo\)({), r: o~?...- I NJ-wQ, Print Name: /. '"""" LAUR Notary Public, State of Florida f~~~~~~ Comm~~~~~'fffsion xpires: \~ ~!f/ Expires March 1, 2019 '~,cu~.~~' Botldtd TJvu Troy Fein lnawance 8Q as