OFFICE OF THE ATTORNEY GENERAL, STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS

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1 OFFICE OF THE ATTORNEY GENERAL, STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: Case No. LlS DERMAKTIVE, LLC, and JORDAN DUFNER, 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 ("FDUTPA"), 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 DermAktive, LLC ("DermAktive") and Jordan Dufner (collectively hereinafter, "Respondents"). 2. DermAktive is a Florida limited liability company with its principle place of business registered at Biscayne Blvd., Suite 568, Aventura, FL DermAktive can be reached via mail at 18 Ole Musket Lane, Danbury, CT, and Biscayne Blvd., Suite 568, Aventura, FL (a UPS Store). 3. Respondent Jordan Dufner is an individual residing at 18 Ole Musket Lane, Danbury, CT, 06810, and is the owner and manager ofdermaktive. 1 Initials:~

2 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 FDUTP A or any other law and solely for the purpose of resolution of this matter with the Department. 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. "Negative Option" is defined as any transaction in which a seller interprets a customer's failure to take an affirmative action, either to reject an offer or to cancel an agreement, as assent to be charged for goods or services. b. "Trial Offer" as used herein means a type of negative option in which there is an offer to provide a trial period of product(s) or service(s) to consumers, whether free or requiring payment therefore, where, as a result of accepting the trial period, consumers are required to contact Respondents prior to expiration of the trial period to avoid receiving additional 2 Initials:..:JI2_

3 products or services to avoid incurring a future financial obligation. c. "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: I. Whether it is of sufficient prominence in 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; and if written or conveyed electronically, that it is not buried on the back, bottom, or in the middle of a wall or text, or in a hyperlink, or in unrelated information or placed on the page where a person would not think it important to read; 1i. Whether it is visually unavoidable; 3

4 111. Whether it is presented in a coherent and meaningful sequence with respect to other terms, representations, claims, or statements being conveyed; 1v. 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; v. Whether it contradicts, or renders ambiguous or confusing, any other information with which it 1s presented; vi. Whether, if it is oral, it is at an understandable pace in the same tone and volume as the sales offer; vu. Whether, it appears for a duration sufficient to allow listeners or viewers to have a reasonable opportunity to notice, read, or otherwise understand; vm. Whether the language and terms used are commonly understood by the consumer in the context in which they are used; ix. Whether it is presented in such a way as to be free of distractions, including but not limited to sound, graphics, 4 Initials: 'jj)

5 text or other offers that compete for the attention of the consumer; and/or x. 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. 7. The Department and Respondents hereby agree and stipulate to the following: a. During the time frame beginning at least June 17, 2013 through the present, Respondents engaged, in the business of providing various products including, but not limited to, skin care products to consumers in Florida and elsewhere using Trial Offers of varying lengths to sell products to consumers. b. Respondents' products were advertised on the following websites: er/, dermakti veskin. com/the-science, affiliate-off er/ dermaktive-am-skin-care-free-trial, and elite/ dermaktive-am-skin-care-free-trial.html. c. Respondents also engaged various telemarketing companies to sell merchandise using Trial Offers, and to prepare the scripts used by these telemarketing companies. 5 Initials: _:::) D

6 d. Respondents stopped accepting new customers by no later than March 1, Respondents agree that they will not accept any new customers for DemAktive products as of the Effective Date of this AVC. 8. The Department investigated allegations that Respondents committed unfair or deceptive acts toward consumers in the State of Florida and elsewhere in connection with the Negative Option plans and Trial Offers of varying lengths used to induce consumers to purchase products from Respondents including: failing to Clearly and Conspicuously disclose all material terms of the transaction before obtaining the consumer's billing information, failing to obtain consumer's express informed consent before charging the consumer, offering a free sample product and/or Trial Offer for only the cost of shipping and handling without Clearly and Conspicuously disclosing the terms of the automatic recurring billing, failing to provide a simple mechanism for consumers to stop recurring charges and obtain a refund, failing to honor requests for refunds, and offering free or nominal free products through online advertising using celebrity endorsement, various alleged user testimonials with before and after photos, and representations of scientific studies to convince consumers to order a free or nominal fee sample of their skin care product and then making canceling future charges or shipments difficult to stop. 6 Initials: :;:]]2_

7 9. Respondents contend that many DermAktive customers who requested refunds did not timely receive them due to unlawful actions of a fake payment processor operated out of Las Vegas by Donald Kasdon, Debra King, and Amber Fairchild called Tl Payments, LLC, and by the actual processor with the acquiring bank relationship, Atlantic-Pacific Processing Systems, Inc. Respondents further contend that together, Kasdon, Fairchild, King, Tl Payments, and Atlantic Pacific Processing Systems, Inc. disabled Respondents' ability to process refunds and instead imposed bogus fees and charges to divert money to themselves rather than customers. Respondents also contend that, this, in turn, required Respondents to manually refund customers later than they would have been refunded, and prevented DermAktive from investigating certain customers altogether. Finally, Respondents contend, as a result of this and other misconduct, Respondents filed a lawsuit against Kason, King, Fairchild, Tl Payments and Atlantic-Pacific Processing Systems, Inc. on May 26, 2016, in the Eighth Judicial District Court, Clark County Nevada (Case No. A B), a copy of which Respondents provided to the Department. The Department has not, as of the Effective Date, investigated the matters in the complaint and takes no position with respect to them. 10. This A VC is based upon the stipulated facts set forth herein. The Department shall not be estopped from taking further action in this matter should 7 Initials: ::Ji)

8 the facts described herein be shown to be incorrect in any material or substantive way or should this A VC not be complied with in full by Respondents. The parties agree that this A VC has been entered into based on the truthfulness of the information provided by Respondents. TERMS 11. 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. Comply with Florida Telemarketing Act, Chapter 501, Part IV, Florida Statutes; the CAN-SPAM Act, and FTC rules and regulations regarding Negative Option features sold online or through telemarketing sales; c. Ensure that any telemarketing companies and/or individuals employed, engaged or utilized by Respondents are licensed properly in Florida; d. Refrain from making or accepting any new Negative Option or Trial Offer sales through DermAktive, LLC or for any of DermAktive, LLC's products, but Respondents may continue servicing existing DermAktive, LLC's consumers who are enrolled in a Negative Option or Trial Offer and have not filed a complaint as of the Effective Date of this A VC; e. Refrain from creating any new companies or entities that engage in Negative Option or Trial Offer sales for any skin care product or nutritional supplement product; f. Ensure that any representations on Respondents' websites or in any other marketing or promotional materials regarding scientific studies or claims 8 Initials: JD

9 about the safety or results from using Respondents' product(s) are substantiated with competent and reliable evidence before the claim is made; g. Ensure that any of Respondents' goods, brands, or services (other than skin care products or nutritional supplement products which are prohibited by sub-section ( e) above) sold in a transaction effected on the Internet through a Negative Option feature or Trial Offer including internet sales through a survey or pop-up: (1) provides text that Clearly and Conspicuously discloses all material terms of the transaction before obtaining the consumer's billing information; (2) obtains a consumer's express informed consent before charging the consumer's credit card, debit card, bank account, or other financial account for products or services through such transaction; and (3) provides simple mechanisms for a consumer to stop recurring charges from being placed on the consumer's credit card, debit card, bank account, or other financial account; h. For all Websites, Pop-Up Windows, Links, Chat Boxes, or other vehicles through which consumers may enter into a Negative Option arrangement/account/membership with Respondents: 1. Clearly and Conspicuously delineate the differentiating costs of any product to those consumers who do choose to select any Negative Option membership and/or Trial Offer as compared to those who do not select any available Negative Option membership and/or Trial Offer; 2. Describe all terms and conditions of any Negative Option offer, trial offer, and/or agreement in a Clear and Conspicuous manner and in a prominent location where it is likely that the consumer will see the terms and conditions before the consumer incurs a financial obligation, including but not limited to the following: L If applicable, that the consumer will be automatically charged on a recurring basis, including the details as to timing, frequency and amount of recurring charges; and II. That charges will continue unless and until the consumer affirmatively cancels prior to the renewal date, including clear instructions as to how the consumer must cancel; 3. Obtain each consumer's affirmative consent to any Negative Option offer by placing the Negative Option terms and conditions, including, but not limited to, billing terms, in close proximity to or directly above the Submit/Order button, or alternatively via a pop-up box whereby 9 Initials: :JD..

10 the consumer completes his or her order, without the use of prechecked boxes; 4. Clearly and Conspicuously disclose to customers the billing terms and conditions of any Trial Offer, including the following: 1. The duration of the Trial Offer, including details allowing a consumer to determine exactly when the Trial Offer begins and ends; IL The specific methods by which a consumer may cancel the Trial Offer and avoid further charges or at any time thereafter; and m. When a consumer will incur charges and amount of charges that a consumer will incur if said consumer does not cancel during a Trial Offer. 1. Ensure that any of Respondents' goods, brands, or services (other than skin care products or nutritional supplement products which are prohibited by sub-section ( e) above) that are sold through a Negative Option feature or Trial Offer in a telemarketing sale Clearly and Conspicuously disclose: the fact that the customer's account will be charged unless the customer takes an affirmative action to avoid the charge(s), the date(s) the charge(s) will be submitted for payment, and the specific steps the customer must take to avoid the charge(s); J For Initial Post-Transaction Correspondence: 1. Clearly and Conspicuously disclose the terms and conditions of any Negative Option and/or Trial Offer in any correspondence to a consumer initiated by Respondents following a consumer's payment to Respondents, including but not limited to an "Order Confirmation" or a written correspondence detailing all terms and conditions sent via US Mail, UPS, FedEx or other courier service; 2. Refrain from utilizing words or phrases known to activate spam filters to block incoming s in any and all post-transaction correspondence with consumers, unless such phrase is reasonably necessary to the information being conveyed to the consumer within the specific correspondence; k. Ensure that any and all disclaimers are Clear and Conspicuous, in at least the same size text as the solicitation, and provided on the same page and in close proximity to or directly above any solicitations for payment; 10 Initials:

11 I. Clearly and Conspicuously disclose to customers how and when products may be returned and maintain adequate customer service capacity to facilitate cancellation requests. This provision specifically requires Respondents to: 1. Charge consumer's debit or credit cards on a date that does not change with each billing period (within a three day grace period), and use the same billing descriptor each time unless the billing descriptor changes, in which case Respondents shall promptly notify consumers, no later than 30 days, of the new billing descriptor; 2. Provide consumers a 30-day advance notice of fee increases via the same address last known to Respondents; 3. Obtain written or electronic confirmation from consumers of their desire to continue membership service(s) prior to increasing by more than five dollars ($5.00) or fifty percent (50%), whichever is lesser, the fee that consumers are charged for any automatic renewal membership/account(s ); m. Refrain from making any misrepresentations that a product or brand is free or that consumers won a prize including any representations made in internet surveys or pop-up and ensure that any independent contractors utilized by Respondents comply with this provision; n. Provide refunds within seven (7) business days to any consumer from the date that Respondents receive notice of the refund request and/or the date that the consumer returns the 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; terminate the enrollment of any and all consumers who are enrolled in Respondents' Negative Option memberships if and when they desire to terminate same; Respondents shall immediately stop billing a consumer upon receipt of a request to terminate enrollment/membership and shall not knowingly, purposely, or intentionally impede the methods of cancellation and shall fully honor any and all requests that comply with Clearly and Conspicuously disclosed terms and conditions; Clearly and Conspicuously disclose Respondents refund policy, comply with all State and Federal regulations regarding refunds and abide by the Clearly and Conspicuously disclosed refund policy; send each consumer who requests to terminate enrollment/membership an confirming cancellation within 24 hours of Respondents' receipt of the request for 11 Initials: :JD

12 termination to the consumer's last known address; and continue to process refund requests for refunds from consumers who, in accordance with Respondents' Clearly and Conspicuously disclosed tenns and conditions, attempted to cancel or terminate their Orders from Respondents in a timely fashion but were unable to do so in the past for any reason; o. Maintain, until Respondents cease charging for products, a customer support telephone number and/or mail and address for consumers to file a complaint, ensure all consumer complaints are responded to within three business (3) days after receipt by Respondents, and ensure that any independent contractors utilized comply with this provision; p. Maintain competent and reliable evidence to substantiate any claims made on any websites or marketing or advertising materials, including, but not limited to, claims regarding product efficiency, scientific studies, health claims, product safety claims, and any customer testimonials utilized in any advertising materials; q. Refrain from misrepresenting on a website, on the phone, or in any other marketing or promotional material that Respondents are operating out of an address or have business hours out of an address that is merely a mail forwarding service; r. Clearly and Conspicuously disclose if the address listed for Respondents is a mailing address only and/or is merely a mail forwarding service; and s. Ensure that any and all businesses/brands owned or operated by Respondents and conducting or transacting business within the State of Florida have a Registered Agent and Registered Office in compliance with Chapter 607, Florida Statutes; and ensure that consumers are made aware of the address the business is operating out of or if the only address is a mailing address and that the address is accurate on Florida Department of State Division of Corporations. BUSINESS RECORDS 12. Respondents shall preserve and retain all relevant business and financial records relating to the acts and practices at issue in this A VC and other 12 Initials:..iJD

13 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 access to such documents and information to the Department within seven (7) days following receipt of the Department's request. CUSTOMER RECORDS 13. Any personal or financial information of consumers, in the custody, control or possession of Respondents with respect to DermAktive 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 with respect to DermAktive except as specifically allowed under State and Federal law. WRITTEN NOTICE 14. Respondents shall make the substantive terms and conditions of this A VC 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 A VC are 13 Initials: Th

14 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. 15. 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. CONSUMER RESTITUTION 16. 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 the complaints and Respondents' responses are included in Exhibit A under the columns entitled "Amount Refunded Prior to AVC'' and "DermAktive Responses." Respondents submitted an affidavit, attached as Exhibit B, attesting to the responses included in Exhibit A including the amount paid by consumers totaling $31, and refunds provided to consumers prior to 14 Initials: iiq

15 the execution of this A VC totaling $25, The Department shall not be estopped from taking further action in this matter should the responses provided by Respondents herein be shown to be inaccurate in any material way. B. The parties agree that the Respondents shall jointly and severally contribute the sum of Six Thousand Three Hundred Eighty Four Dollars and Thirty Three Cents ($6,384.33)("Restitution Funds") simultaneously upon execution of this AVC which shall be used to pay the remaining claims of individuals who have filed complaints against Respondents through entities including, but not limited to, the Department and the Better Business Bureau. The manner in which the funds are to be distributed shall be within the sole discretion and/or reasonable judgment of the Department. C. In addition, Respondents are directed to pay to the Department the sum of five thousand dollars ($5,000.00)("Escrow Funds") simultaneously upon execution of this A VC to satisfy future consumer restitution for a period of sixty (60) days from the date of execution of this AVC. In the event actual restitution for future complainants exceeds the amount of the Escrow Funds, then the Escrow Funds will be distributed pro-rata to the complainants who have submitted complaints to the Department within the sixty (60) day period. However, no individual consumer who submits a complaint in the sixty (60) day period will receive more than the actual amount of payment made to Respondents. Upon the 15 Initials: JP

16 conclusion of this sixty (60) day period of time, any remaining monies shall revert back to the Department of Legal Affairs Revolving Trust Fund and shall be used to defray the cost of attorneys' fees and costs and restitution distribution. D. The Restitution and Escrow Funds identified above shall be made by certified or cashier's check, payable to the Department of Legal Affairs Escrow Fund, and shall be sent to the attention of Assistant Attorney General Ryann Flack, Office of the Attorney General, Consumer Protection Division, 444 Brickell Avenue, 6th Floor, Miami, FL Upon receipt, the checks shall be deposited into the Department of Legal Affairs Escrow Fund, in accordance with Section (1), Florida Statutes. If any restitution monies remain after the distribution of restitution the Attorney General's office will deposit the remaining monies into the Department of Legal Affairs Revolving Trust Fund and same shall be used to defray the cost of restitution distribution and any attorneys' fees and costs incurred in enforcing this A VC, or as fees and costs associated with ongoing and future enforcement initiatives pursuant to Chapter 501, Part II, Florida Statutes. E. Respondents shall continue to respond and in good faith attempt to resolve each consumer complaint concerning DermAktive received from and after the Effective Date to the reasonable satisfaction of Respondents and the consumers including, but not limited to, resolution via refund and adding consumer 16 Initials: d D_

17 to Respondents' Do-Not-Contact list. Respondents shall use commercially reasonable efforts to commence the consumer complaint resolution process within three (3) business 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. F. To the extent that Respondents have insufficient information upon which 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 17. Respondents shall contribute Twelve Thousand Dollars ($12,000.00), 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 thousand dollars ($2,000.00) per month payable to the Department on the first (1st) of each month, starting August 1, 2016, for which let 17 Initials: -OD-

18 execution issue forthwith. The payments due hereunder shall be made by cashier's check or other certified funds payable to the Department of Legal Affairs Revolving Trust Fund. The payments due hereunder 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 The original AVC 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 Avenue, 6 th Floor, Miami, FL FUTURE VIOLATIONS 19. 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 judgment of up to $15, per consumer transaction as authorized by Florida Statutes Sections and , as well as attorneys' fees and costs and any other legal or equitable relief as the court may determine appropriate. The Department reserves the right to 18 Initials:~

19 seek Chapter 501 penalties for any future violation(s) of Chapter 501, Part II, Florida Statutes. EFFECTIVE DATE 20. The effective date of this A VC shall be the date of its execution by all Parties. Acceptance by the Department shall be established by the signature of the Director, Consumer Protection Division, Department of Legal Affairs, Office of the Attorney General. This AVC shall become effective on the "Effective Date," which shall be the date on which the Director accepts and executes this AVC. 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 21. 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 A VC may be executed in counterparts the compilation of which shall constitute the full and final agreement. 22. Notice to any of the Parties to this A VC 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. 19 Initials: ':Jb

20 To Respondents: Ari N. Rothman, Esq. Venable LLP 575 7th Street, NW Washington, DC To the Department: Ryann Flack, Assistant Attorney General Consumer Protection Division Office of the Attorney General 444 Brickell A venue, 6th Floor Miami, Florida Nothing in this AVC 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. 24. It is a condition of each of the Department's obligations under this A VC that Respondents have fully and timely performed all of Respondents' obligations previously due under this AVC. 25. This AVC is the final, complete, and exclusive statement of the Parties' agreement on the matters contained in this A VC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this A VC, 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 A VC. 20 Initials:~

21 26. It is further agreed that the Parties jointly participated in the negotiation of the terms of this AVC. No provision of this AVC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this AVC than another. 27. By my signature, I hereby affirm that I have authority to execute this A VC 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 capacity, and that by my signature I am binding myself and the businesses/parties indicated to the terms and conditions of this AVC. SIGNATURES ON SEPARATE PAGE(S) 21 Initials:.::Jb

22 BEFORE ME, an officer duly authorized to take acknowledgments in the _ State C?fQ(;f\f\-Q.0c0--, personally appeared~(jro\ 0,1\ Uv-t: f\q-1--, who produced Cs\~,.<\ \}lf ~ \-.-\etl\<:c.as identification. He who acknowledged before me that he executed the foregoing instrument for the purposes therein stated on the ~~i... day of '-~t3 '2016. Subscribed to before me this ~ '-\~ day of,_\ ~\..,,,, 2016.,_j..,,, :--0--;-- (print, type, or stamp commissioned Notary Public) Personally known_,_ or Produced Identification / (check one) Type of Identification Produced: ~T -~('\,) -er-s \=\u\/\.~x- 22 ~]) Initials:

23 COUNSEL FOR RESPONDENTS AS TO FORM ONLY By:~-~--- Ari N. Rothman, Esq. (Actively admitted in California and the District of Columbia only) Venable LLP 575 7th Street, NW Washington, DC Initials: :JD

24 OFFICE OF THE ATTORNEY GENERAL By: Victoria Butler Director, Consumer Protection Division Department of Legal Affairs Office of the Attorney General 107 W Gaines Street Tallahassee, FL (850) Dated: -F~-= /7 1 By: ~-~-+~/"'~ l...--/~~\--~---=-~ Ryann Flack \.. -/ Florida Bar No.: Assistant Attorney General 444 Brickell A venue, 6 1 h Floor Miami, FL (305) ext. 562 (305) facsimile Dated: -:J /~I / J (, 24 Initials:

25 EXHIBIT B TO ASSURANCE OF VO LUNT ARY COMPLIANCE STATE OF CONNECTICUT ) ) COUNTY OF ) AFFIDAVIT 1. My name is Jordan Dufner. I am, and at all relevant times have been, a resident of the State of Connecticut and the Owner/Manager of DermAktive, LLC, a Florida corporation (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 16A of the Assurance of Voluntary Compliance (the "A VC") entered into by Respondents with the Consumer Protection Division of the Attorney General, Department of Legal Affairs for the State of Florida under Case Number L to which this Affidavit is attached. 3. I attest that the responses described in "Amount Customer Paid", "Amount Refunded Prior to A VC" and "DermAktive Responses" contained in Exhibit "A" to the A VC are true and accurate based upon the information 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 the amount paid by customers in Exhibit A was thirty-one thousand six hundred seventy-five dollars and two cents ($31,675.02). Respondents have provided refunds to consumers in Exhibit A prior to the execution of this A VC totaling twentyfive thousand two hundred ninety dollars and sixty-nine cents ($25,290.69). Respondents have provided six thousand three hundred eighty four dollars and thirty three cents ($6,384.33) in Restitution Funds and five thousand dollars ($5,000.00) in Escrow Funds to the Department simultaneously upon execution of this A VC. I declare that the foregoing is true and correct. an Dufner, Owner ancl Manager DermAktive, LLC BEFORE ME, the undersigned authority, personally appeared, Jordan Dufner, as the duly appointed Owner and Manager of DermAktive, LLC, who is known to me to be the person described and after being duly sworn and deposed, executing the foregoing instrument, upon his personal knowledge and acknowledges to and before me that same was/is true and correct to the best of his knowledge and belief. :{\'- SWORN TO AND SUBSCRIBED BEFORE ME, thi~ day of,\ v..\ '\, NOTARY PUBLIC STATE OF CONNECTICUT COUNTY OF -...,J o is personally known to me )l('produced a Connecticut Driver's License as identification o produced as identification; and dirl take an oath. h, "'"' µa,'v\ I Print Name: f, Nb~~:ePtlqlic, State o~~an~e M PATRY My Commission Expires: 1 1 -c.. Notary Public, Stat~ of Connecticut My commission Expires May 31, 2019