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STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS In the Matter of: AG Case Number: L12-3-1013 KNIVES4WHOLESALE, LLC, d/b/a KNIVES4WHOLESALE, K4W, JASON SAAKES, an Individual, Respondents, ----------------------~/ ASSURANCE OF VOLUNTARY COMPLIANCE PURSUANT TO Chapter 501, Part II, "The Florida Deceptive and Unfair Trade Practices Act," Florida Statutes (2011), the STATE OF FLORIDA, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS (hereafter the "Department") investigated certain acts and practices of KNIVES4WHOLESALE, LLC (hereafter "K4W, LLC"), d/b/a KNIVES4WHOLESALE, K4W, and JASON SAAKES, (hereafter "Saakes") as an individual (collectively hereafter "Respondents") regarding Respondents' business practices. Respondents enter into this Assurance of Voluntary Compliance (hereafter "A VC") with the Department without an admission of wrongdoing and for the purpose of resolving this matter only. Pursuant to 501.207(6), Florida Statutes (2011), the Department accepts this AVC in termination of its investigation into the business practices of Respondents. 1. Factual Allegations 1.1 Respondent, K4W, LLC is a Florida limited liability corporation, with its principle place of business located at 6923 Narcoossee Road, Suite 601-605, Orlando, FL 32822. Respondent, K4W, LLC does business as Knives4Wholesale and K4W. Page 1 of9 Initials

1.2 Respondent, Saakes, is the president and owner of K4W, LLC and directs, controls, has the authority to control, and participates in, the acts and practices of Respondents' businesses. 1.3 Respondents are a specialty retailer of self-defense and novelty merchandise, which includes knives, airsoft guns, blowguns, swords, cross bows, BB guns, stun guns, pepper sprays, and batons. Respondents advertise their products and solicit sales primarily through the Internet, via websites, http://www.knives4wholesale.com and http://www.onlinestunguns.com (hereafter together "websites"). 1.4 The Department initiated its investigation based on consumer complaints. The consumer complaints allege that: a. Consumers did not receive their full merchandise order or only received a partially completed order from Respondents after paying for merchandise; b. Respondents did not notify consumers of any shipment delays; c. Consumers could not communicate with Respondents via email and telephone to obtain a refund. If consumers did communicate with Respondents and were promised a refund, Respondents failed to provide refunds. 2. DEFINITIONS 2.1 For the purposes of this AVC, the following definitions shall apply. 2.2 "Advertising" and "Marketing" (including "Advertisement," "Advertise," and "Market") shall mean a commercial message in any medium that directly or indirectly promotes a consumer transaction within the state of Florida. Page 2 of9 Initials

2.3 "Clear and Conspicuous" (including "Clearly and Conspicuously") shall mean that a statement, representation, claim or term is readily noticeable and reasonably understandable by the person(s) to whom it is directed. The following shall be considered in determining whether a statement, representation, claim or term is clear and conspicuous: a. Whether it is presented in a coherent and meaningful sequence with respect to other statements, representations, claims, or terms being conveyed; b. Whether it is in close proximity to the statement, representation, claim or term it clarifies, modifies, explains, or to which it otherwise relates; c. Whether it is contradictory to any statement, representation, claim or term it purports to clarify, modify, or explain, or is otherwise contradictory or confusing in relation to any other statement, representation, claim or term being conveyed; d. Whether it is conveyed by means of an abbreviation and, if so, whether the abbreviation is commonly understood by the public, or approved by federal or state law; e. Whether it is legible; f. Whether it is of sufficient prominence in terms of print, size and contrast, as compared with accompanying statements, representations, claims or terms, so as to be readily noticeable and reasonably understandable by the person(s) to whom it is directed; g. Whether it is at a decibel level and speed so as to be readily noticeable and reasonably understandable by the person(s) to whom it is directed; and Page 3 of9

h. Whether it appears for duration of time sufficient to allow a listener or viewer to have reasonable opportunity to notice, read, and understand. 2.4 "Material" shall mean likely to affect a person's choice of, or conduct regarding, goods or services. 2.5 "Shipment" (including "Ship" or "Shipped") shall mean the act by which merchandise is physically placed in the possession of the carrier. 3. JURISDICTION AND VENUE 3.1 The parties agree that the State of Florida has jurisdiction over Respondents for the purposes of entering into this AVC and for any enforcement actions arising out of this AVC. 3.2 It is further agreed by the parties that venue for any matter relating to or arising out of this AVC shall lie solely in Orange County, Florida. 4. COMPLIANCE TERMS 4.1 Respondents shall comply with all applicable laws, rules, and/or regulations, including, but not limited to, the following: a. The Florida Deceptive and Unfair Trade Practices Act as contained in Chapter 501, Part II, Florida Statutes (2011); b. Section 5, Federal Trade Commission Act, 15 U.S.C. 45; c. Mail or Telephone Order Merchandise Trade Regulation Rule, 16 C.F.R. 435 4.2 Respondent, Saakes, represents to the Department that he has read "A Business Guide to the FTC's Mail or Telephone Order Merchandise Rule" and the Mail or Telephone Order Merchandise Rule, 16 C.F.R. Section 435, and that he is familiar with the guidelines and prohibitions contained within. Page 4 of9 n_ Initials

4.3 Respondents shall Clearly and Conspicuously disclose all Material terms and conditions related to the sale and Shipment of Respondents' merchandise, including Respondents' return and refund policy. 4.4 Asterisks or other words or symbols used to draw the consumer's attention to the accompanying disclaimer or footnote must be Clear and Conspicuous to the statement which is supplemented by a disclaimer or footnote. 4.5 Respondents shall provide timely service and communication to consumers and shall timely respond to consumer calls, requests, complaints, and inquires. 4.6 Respondents shall use its best efforts to resolve consumer complaints received by the Department or the Better Business Bureau. 5. MONETARY TERMS 5.1 Upon execution of this A VC, Respondents shall pay to the Department the total sum of Five thousand and No/100 Dollars ($5,000.00) pursuant to 501.2101, Florida Statutes (2011), for investigative costs, attorney's fees, and current and future monitoring. Payment shall be made by certified or cashier's check payable to the Department of Legal Affairs Revolving Trust Fund and shall be sent to Denise Kim, Assistant Attorney General, 135 West Central Blvd., Suite 1000, Orlando, FL 32801. 5.3 In the event that Respondents fail to timely pay any of the above amounts, Respondents shall be in default of this AVC and Respondents stipulate to entry of a final judgment in favor of the Department for the outstanding amounts due. 5.4 All obligations and sums due under the terms of this AVC are the joint and several responsibility of the Respondents. Page 5 of9 1S_ Initials

6. EFFECTIVE UPON ACCEPTANCE 6.1 The Department's Director of Economic Crimes may refuse to accept this A VC at his discretion and the A VC shall only become effective upon its acceptance and signing by the Director. The receipt of or deposit by the Department of any monies paid by Respondents pursuant to the terms of this A VC shall not constitute acceptance by the Department. 6.2 This AVC may be signed in multiple counterparts, each of which shall be considered an original and all of which together will constitute one and the same agreement. 7. BUSINESS RECORDS 7.1 In connection with the Department's future monitoring of Respondents, Respondents agree to retain documents and other information reasonably sufficient to establish compliance with the provisions herein and shall provide the Department reasonable access to such documents and information upon request for a period of two years. 8. CONSTRUCTION OF A VC 8.1 This A VC is the result of negotiations between the parties. This Agreement shall be deemed to have been drafted by both the Department and the Respondent and, in the event of a dispute, shall not be construed against either party. 8.2 Respondents shall not represent, directly or indirectly, that the Department has approved any ofthe Respondents' business practices nor shall Respondents use the existence of this A VC to imply such approval. 8.3 Respondents acknowledge and agree that any failure to comply with the terms and conditions of this A VC is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes (20 11 ), and will subject Respondents to any and all civil penalties and sanctions provided by law, including awarding of attorneys' fees and costs. Page 6 of9

9. APPLICABILITY 9.1 This AVC shall apply to and continuously bind Respondents and their affiliated entities, successors, assigns and each of their officers, directors, agents, and employees, whether acting directly or through any corporation, subsidiary, division, or other entity. 10. CHANGES IN LAW OR BUSINESS PRACTICES 10.1 It is further agreed by the parties that if any statutes change due to amendment, repeal, or disposition by the legislature, an agency, or court so that they would permit any action prohibited by any section of this AVC, that section of this AVC shall no longer have any force or effect. 10.2 If any clause, provision, or section of the AVC shall, for any reason, be held illegal, invalid, or unenforceable, such illegality, invalidity, or unenforceability shall not affect any other clause, provision, or section of this AVC, and this A VC shall be construed and enforced as if such illegal, invalid, or unenforceable clause, section, or other provision had not been contained herein. IN WITNESS WHEREOF, Respondents have executed this AVC in the County and State listed below, as ofthe date affixed thereon. Au) KNIVES4WHOLESALE, LLC By: /.../Z..-..;a.. <" ' C-.:::J Jason Saakes "" c~ts President ~~v~ //Jason Saakes v Page7of9 ~ ~.. 1 Imtla s

STATE OF FLORIDA COUNTY OF ORANGE BEFORE ME, an officer duly authorized to take acknowledgments in the State of and he acknowledged before me that Florida, personally appeared.:jas.pr-- SAA ~\ he executed the foregoing instrument for the purposes therein stated, on this s..- day of 'v\doe~.be..,-, 2012. Sworn to and subscribed before me this C day of )ll) llelk-hre v, 2012. ~)c~pa'~ NOTARY PUBLIC (print, type or stamp commissioned name of Notary Public) Personally known or Produced identification Vc check one) Type ofldentification Produced: --;f lo&i J~r -:D~\ ver..s ~~ Signed this ~day of Assistant Attorney General Office of the Attorney General Department of Legal Affairs 135 West Central Blvd., Suite 1000 Orlando, Florida 32801 (407) 245-0833 phone, (407) 245-0365 Fax ~nj:eg '2012. Accepted this k day of tij}v v. '2012. a s D ector of Economic Crimes Office of the Attorney General 2012. Page 8 of9 <15.-1 t mtla s

Department of Legal Affairs The Capitol Tallahassee, Florida 32399-1050 Page 9 of9