IN THE CIRCUIT COURT OF THE SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA

IN THE CIRCUIT COURT OF THE SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, PLAINTIFF, vs. CASE NO.: CACE 14-018025 DIVERSIFIED EDUCATIONAL RESOURCES, dlb/a Jefferson High School, L.L.C., and Enterprise High School, L.L.C., a Florida limited liability company, ALEXANDER WOLFRAM, a/k/a Alex Wolfram, an individual, and MARIA T. GARCIA, a/k/a Maria Garcia, a/k/a Maria Calleja, a/k/a Maria Trinidad Garcia Calleja, an individual, DEFENDANTS. CONSENT FINAL JUDGMENT AND PERMANENT INJUNCTION AS TO DEFENDANT ALEXANDER WOLFRAM a/k/a ALEX WOLFRAM WHEREAS, this CONSENT FINAL JUDGMENT AND PERMANENT INJUNCTION ("Consent Judgment" or "Order") was entered upon agreement and stipulation between the Plaintiff, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA ("ATTORNEY GENERAL" or "DEPARTMENT"), and Defendant, ALEXANDER WOLFRAM a/k/a ALEX WOLFRAM ("WOLFRAM" or "CONSENT DEFENDANT"); WHEREAS, the ATTORNEY GENERAL initiated an investigation concerning the business acts and practices of certain persons and entities, and subsequently filed a Complaint ("Complaint") against Diversified Educational Resources, LLC d/b/a Jefferson High School, LLC and Enterprise High School, LLC ("DEFENDANT BUSINESSES"), MARIA T. GARCIA, a/k/a Maria Garcia, a/k/a Maria Calleja, a/k/a Maria Trinidad Garcia Calleja and the Initials:~

CONSENT DEFENDANT (collectively referred to herein as "DEFENDANTS") alleging violations of the Florida Deceptive and Unfair Trade Practices Act, Florida Statutes Chapter 501, Part II ("FDUTPA"); WHEREAS, the United States Federal Trade Commission initiated an action in the United States District Court for the Southern District of Florida (FTC v. Diversified Educational Resources, et al., No. 0:14-cv-62116-JIC (the "FTC Action")), against the CONSENT DEFENDANT and others charging violation of Section 5 of the FTC Act, U.S.C. 45, based on the same conduct underlying the Complaint in this action; WHEREAS, all of the assets of the CONSENT DEFENDANT were frozen pursuant to Court orders in the.r:'tc Action, with any such assets to be distributed pursuant to Court orders in that Action; and WHEREAS, the ATTORNEY GENERAL and the CONSENT DEFENDANT (hereinafter collectively referred to as "THE PARTIES") have consented to the jurisdiction of this Court, agree that venue is proper in this Court, and further agree and acknowledge that the Court will retain jurisdiction over this matter. THEREFORE, by express written consent of the CONSENT DEFENDANT, this Court, based upon the foregoing and the consent of THE PARTIES, hereby ORDERS AND ADJUDGES that: FINDINGS I. JURISDICTION AND VENUE 1. This action commenced wherein the ATTORNEY GENERAL sued the DEFENDANTS pursuant to FDUTPA for activities related to the business of selling purported academic products and/or services and/or supposed G.E.D./high school equivalency test Initials:~

preparation services or products. The Complaint arose from an investigation wherein the ATTORNEY GENERAL, an agency of the state and the enforcing authority under FDUTPA, determined that an enforcement action served the public foterest The ATTORNEY GENERAL had full authority to bring this action. 2. The Complaint is an action for injunctive and declaratory relief, costs, damages, attorney's fees, penalties and any other statutory relief available, pursuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Fla. Stat. 3. The Complaint charges that the DEFENDANTS participated in, had knowledge of, and/or controlled or had the authority to control deceptive acts or practices in violation of FDUTPA in the marketing and sale of fake high school diplomas, transcripts, verification services and/or purported G.E.D./high school equivalency test preparation services or products to consumers. 4. The CONSENT DEFENDANT is sui juris. 5. The CONSENT DEFENDANT neither admits nor denies any of the allegations in the Complaint. 6. Only for purposes of this action, the CONSENT DEFENDANT admits the facts necessary to establish jurisdiction. 7. This Court has subject-matter jurisdiction pursuant to FDUTPA. 8. Venue is proper in Broward County, Florida as the statutory violations alleged herein occurred in, or affected, more than one judicial circuit in the State of Florida, including Broward County, and the DEFENDANTS conducted business activities in Broward County, Florida. 3 Initials: \?\l~

9. All material actions alleged in the Complaint have occurred within four (4) years of the filing of this lawsuit. II. DEFENDANTS' RELEVANT COURSE OF CONDUCT I 0. The DEFENDANT BUSINESSES are registered Florida Limited Liability Corporations which own fictitious names also registered with the State of Florida. 11. The ATTORNEY GENERAL alleges the DEFENDANTS marketed, advertised, sold, and provided purported high school diplomas, high school transcripts, verification services and/or supposed G.E.D./high school equivalency test preparation services or products. 12. The ATTORNEY GENERAL alleges the DEFENDANTS' acts and practices constitute unfair, deceptive and unconscionable trade practices in violation of the Florida Deceptive and Unfair Trade Practices Act Section 501.201 et seq. 13. Furthermore, the ATTORNEY GENERAL alleges the DEFENDANTS' acts and practices violate 817.06, Florida Statutes, 501.97, Florida Statutes and therefore constitute per se FDUTP A violations. 14. The ATTORNEY GENERAL alleges consumers in the State of Florida were actually injured by DEFENDANTS' acts and practices. ORDER 15. Final judgment is hereby entered on the causes of action asserted under the Florida Deceptive and Unfair Trade Practices Act (Counts I through IV of the Complaint) in favor of the ATTORNEY GENERAL and against the CONSENT DEFENDANT ALEXANDER WOLFRAM, 6030 East Monterra Way, Scottsdale, Arizona 85266. 4 fnitials: ~li~

I. SCOPE OF CONSENT JUDGMENT 16. The ATTORNEY GENERAL acknowledges by execution hereof that this Consent Judgment constitutes a complete settlement of claims asserted against the CONSENT DEFENDANT in the ATTORNEY GENERAVs Complaint filed in this case. 17. Nothing herein constitutes approval by the ATTORNEY GENERAL of the CONSENT DEFENDANT's or any other person or corporation's past or future business practices. The CONSENT DEFENDANT shall not make any representation contrary to this paragraph. 18. The ATTORNEY GENERAL agrees that it shall not proceed with or institute any civil actions or proceedings against the CONSENT DEFENDANT that are inconsistent with the provisions of this Consent Judgment. 19. Nothing herein shall preclude the ATTORNEY GENERAL, however, from either enforcing the provisions of this Consent Judgment, or pursuing additional actions against CONSENT DEFENDANT which are outside the scope of the release set forth herein. Specifically, acts conducted previously that were unknown to the ATTORNEY GENERAL at the time of the entry of this Consent Judgment or acts conducted after the entry of this Consent Judgment are not released, and enforcement may arise as the result of such acts. 20. Nothing in this Consent Judgment releases any claims the ATTORNEY GENERAL or any other person may have against any other defendant or other person or entity related to the allegations in the Attorney General's Complaint. 21. Nothing herein relieves any person or corporation of its duty to comply with all applicable laws or constitutes authorization by the ATTORNEY GENERAL for any such person or corporation to engage in acts and practices prohibited by such laws. 5 Initials:~

22. Moreover, unless expressly stated to the contrary, nothing herein shall be construed as a waiver or compromise of any private rights, causes of action, or remedies of any private person, businesses, corporation, government or legal entity against the CONSENT DEFENDANT with respect to the acts and practices covered by this Consent Judgment. 23. Likewise, nothing herein shall affect the testimonial obligations or right to take legal or factual positions in defense of litigation or other legal proceedings of the CONSENT DEFENDANT, to which the ATTORNEY GENERAL is not a party. U. INJUNCTIVE TERMS 24. IT IS ORDERED that the CONSENT DEFENDANT is prohibited and enjoined from the following acts or practices: a. Violating the provisions of Chapter 501, Part II, Florida Statutes; b. Violating the provisions of Section 817.06 Florida Statues; c. Violating the provisions of Section 501. 97, Florida Statutes; d. Advertising, marketing, promoting, offering for sale, selling or disseminating any Academic Degree in Florida or to residents of Florida. "Academic Degree" as used herein means any document issued or purported to be issued, that confers or purports to confer a qualification, records or purports to record success in examinations or successful completion of a course of study, or evidences or purports to evidence that the holder has completed any curriculum and/or shown proficiency in any curriculum, whether denominated as a degree, diploma, certificate, transcript or other name. e. Advertising, marketing, promoting, offering for sale, selling or disseminating any transcripts reflecting any kind of academic achievement and/or purported G.E.D./high school equivalency test preparation services or products in Florida or to residents of Florida. 6 Initials:\\\. \---.J

f. Training, educating or advising any other person or entity, regarding the solicitation, sale and/or dissemination of academic services and/or products in Florida or to residents of Florida including, but not limited to academic degrees of any kind, transcripts reflecting any kind of academic achievement, or purported G.E.D./high school equivalency test preparation services or products; g. Controlling/having the authority to control, participating in, or receiving any benefit, either directly or through an intermediary, from the acts and practices of any business, organization or entity, that, either within Florida or to residents of Florida: i. Solicits, receives or otherwise accepts money or valuable consideration in any manner or form from any person for the purpose of providing that person or any other person with items represented as an academic degree of any kind, items represented as transcripts reflecting any kind of academic achievement, or purported G.E.D./high school equivalency test preparation services or products; ii. Advertises or otherwise represents that it can provide an academic degree of any kind, transcripts reflecting any kind of academic achievement or purported G.E.D./high school equivalency test preparation services or products; iii. Advertises or otherwise uses the acronym G.E.D. and/or GED; iv. Holds itself out, by any means, as a "high school" or "school" and by any title or designation incorporating the word "high school" or "school" or an abbreviation thereof; 7 Initials:~~

v. Relates to the sale of purported academic and/or educational materials, products, or services; and vi. Submits any information to the Florida Department of Education's annual private school survey. 25. The CONSENT DEFENDANT shall not effect any change in the fonn 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 tenns and conditions set forth in this Judgment. HI. MONETARY TERMS 26. Judgment is hereby entered in favor of the ATTORNEY GENERAL, whose address 110. S.E. 6th Street, 101h Floor, Fort Lauderdale, Florida 33301, and against the CONSENT DEFENDANT in the total sum of One Million Three Hundred Eighty-Eight Thousand Five Hundred and Seventy-Nine Dollars ($1,388,579.00). This judgment's civil penalties in the amount of One Million Three Hundred and Fifty Thousand Dollars ($1,350,000.00) and attorney's fees and costs in the amount of Thirty-Six Thousand Dollars ($36,000.00) are suspended, subject to the provisions below. As to this judgment, consumer restitution in the amount of Two Thousand Five-Hundred and Seventy-Nine Dollars ($2,579.00) is to be paid by the CONSENT DEFENDANT according the provisions below. Consumer Restitution 27. Judgment in the amount of Two Thousand Dollars Five Hundred and Seventy- Nine Dollars ($2,579.00) ("Restitution Amount") is entered in favor of the ATTORNEY GENERAL against the CONSENT DEFENDANT for consumer restitution, for which let execution issue forthwith. 8 Initials: ~ 1~

Attorneys' Fees and Costs 28. Judgment in the amount of Thirty-Six Thousand Dollars ($36,000.00) is entered in favor of the ATTORNEY GENERAL against the CONSENT DEFENDANT for attorneys' fees and costs. This judgment as to attorneys' fees and costs will be suspended subject to the suspension provisions below. Civil Penalties 29. Judgment in the amount of One Million Three Hundred and Fifty Thousand Dollars ($1,350,000.00) is entered in favor of the ATTORNEY GENERAL against the CONSENT DEFENDANT as a civil penalty. This judgment as to civil penalties will be suspended subject to the suspension provisions below. Payment and Suspension Provisions 30. The Restitution Amount shall be paid on or before the date of this Consent Judgment by wire transfer, certified funds or cashier's check, payable to the Department of Legal Affairs Escrow Fund. Upon receipt, the funds shall be deposited into the Department of Legal Affairs Escrow Fund, in accordance with Section 501.2101(1), Florida Statutes. In the event actual restitution for future complainants exceeds the Restitution Amount, then the Restitution Amount will be distributed pro-rata to the complainants determined by the ATTORNEY GENERAL to be eligible for restitution. In no event shall any individual consumer receive more than the amount they are actually owed. If any restitution monies remain after the distribution of the Restitution Amount, the ATTORNEY GENERAL will deposit the remaining monies into the Department of Legal Affairs Revolving Trust Fu'.1d and it shall be used to defray the costs of restitution distribution and any attorneys' fees and costs incurred in 9 Initials:~

enforcing this Consent Judgment, or as fees and costs associated with ongoing and future enforcements initiatives pursuant to Chapter 501, Part II, Florida Statutes. 31. THE PARTIES' agreement to the suspension of part of the judgment as to civil penalties and attorney's fees and costs is expressly premised upon the CONSENT DEFENDANT's completion under oath of the Florida Rule of Civil Procedure Form 1.977 (Fact Information Sheet) and the Office of the Attorney General's Financial Statement Form, including all required attachments, on a date set certain by the Attorney General. The Fact Information Sheet and all required attachments shall be sent to: Kristen Pesicek, Assistant Attorney General, Office of the Attorney General, 110. S.E. 6th Street, l0 1 h Floor, Fort Lauderdale, Florida 33301. 32. THE PARTIES' agreement to the suspension of part of the judgment as to civil penalties and attorney's fees and costs is expressly premised upon the CONSENT DEFENDANT's compliance with this Consent Judgment's Injunctive Terms. 33. THE PARTIES' agreement to the suspension of part of the judgment as to civil penalties and attorney's fees and costs is expressly premised upon the truthfulness, accuracy, and completeness of the CONSENT DEFENDANT's representations to the Department including, but not limited to, the CONSENT DEFENDANT's sworn Fact Sheet, the Office of the Attorney General's Financial Statement Form and all required attachments to these documents, submitted to the ATTORNEY GENERAL. 34. The suspension of the judgment as to civil penalties and attorneys fees and costs will be annulled or otherwise vacated as to the CONSENT DEFENDANT, upon motion by the ATTORNEY GENERAL, if the Court finds that the CONSENT DEFENDANT failed to comply with this Consent Judgment's Injunctive Terms and/or failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or 10 Initials~

omission in the financial representations identified above. 35. If the suspension of the judgment as to civil penalties (which the Parties stipulate only for purposes of this Section represents the amount of the civil penalty for the violations alleged in the Complaint) and attorney's fees and costs is annulled or otherwise vacated, the judgment amount in total becomes immediately due and payable in the amount specified in Subsections 28 and 29 above, plus interest computed from the date of entry of this Order. 36. The CONSENT DEFENDANT agrees that the judgment as to civil penalties represents a civil penalty owed to the State of Florida and is not compensation for actual pecuniary loss, and, therefore, it is not subject to discharge under the Bankruptcy Code. IV. RECORDS 37. From the date of the execution of this Consent Judgment by the CONSENT DEFENDANT, all of the CONSENT DEFENDANT'S records which are not in the possession of the FTC and/or FBI must be retained for a minimum of two (2) years. The CONSENT DEFENDANT shall maintain and make available to the ATTORNEY GENERAL's representative, upon any reasonable written request, all books, records and other documents, except privileged documents, in the format in which they exist and which are not in the possession of the FTC and/or FBI, which reflect the implementation of the terms of this Consent Judgment and compliance with its terms. Any such records requested by the ATTORNEY GENERAL shall be made available for inspection within ten (10) business days of the CONSENT DEFENDANT's receipt of the request. The CONSENT DEFENDANT shall honor any request from the ATTORNEY GENERAL to make such records available without legal process. 11 Initials: ~.J

V. ACCEPTANCE AND NOTICE 38. The CONSENT DEFENDANT shall be responsible for making the substantive terms and conditions of this Consent Judgment known to the officers, directors, partners, management level employees, agents, representatives, as well as the affiliated parties engaged in any of the CONSENT DEFENDANT's businesses, projects, and/or activities. 39. The CONSENT DEFENDANT, within seven (7) days of entry of this Order, shall submit to the ATTORNEY GENERAL an acknowledgment of receipt of this Order sworn under penalty of perjury. VI. GENERAL AND ADMINISTRATIVE PROVISIONS 40. Jurisdiction is retained by the Court for the purpose of enabling any party to this Consent Judgment to apply to the Court at any time for such further Orders and directions as might be necessary or appropriate for the modification, construction and/or implementation of the injunctive provisions of this Consent Judgment, or for the enforcement and punishment of violations of any provisions hereof However, THE PARTIES may by stipulation agree to a modification of the terms of this Consent Judgment, which agreement shall be presented to the Court for consideration. Any stipulation by THE PARTIES regarding the modification of any terms of this Consent Judgment must be by a written instrument signed by or on behalf of the ATTORNEY GENERAL and the CONSENT DEFENDANT. 41. This document is signed in anticipation of this Judgment being submitted to the Court for approval, without necessity of hearing, which is hereby WAIVED by all PARTIES. 42. THE PARTIES jointly participated in the negotiation of the tenns which are articulated within this Consent Judgment, and no provision of this Consent Judgment shall be construed for or against either party on the grounds that one party or another was more heavily 12 Initials: tlc-~

involved in the preparation of the Consent Judgment or had control over the provisions included herein. 43. The CONSENT DEFENDANT acknowledges that he has read and understands the terms of the foregoing Consent Judgment 44. The CONSENT DEFENDANT states that no promises of any kind or nature whatsoever, other than the written terms of this Consent Judgment, were made to induce the CONSENT DEFENDANT into entering into this Consent Judgment. 45. The CONSENT DEFENDANT states that he has entered into this Consent Judgment voluntarily and that this Consent Judgment constitutes the entire agreement between him and the State of Florida in this matter. 46. Nothing in this Consent Judgment shall preclude the ATTORNEY GENERAL from pursuing any other parties and/or unnamed defendants to this or any other lawsuit, nor does it preclude the ATTORNEY GENERAL from collecting any monetary fees, restitution, costs or any other such relief to which the ATTORNEY GENERAL is entitled. 47. Nothing in this Consent Judgment will be construed to limit the authority of the ATTORNEY GENERAL to protect the interests of the State of Florida or the people of the State of Florida. Accordingly, nothing herein relieves CONSENT DEFENDANT of his continuing duty to comply with applicable laws of the State of Florida nor constitutes authorization by the ATTORNEY GENERAL for CONSENT DEFENDANT to engage in acts and practices prohibited by such laws. This Consent Judgment shall be governed by laws of the State of Florida. 48. Notwithstanding any other provision of this Judgment, nothing herein shall be construed to impair, compromise or affect any right of any government agency other than the 13 Initials~~

Office of the Attorney General for the State of Florida. VII. FUTURE VIOLATIONS 49. The CONSENT DEFENDANT acknowledges that a violation of this Consent Judgment shall be prima facie evidence of a FDUTPA violation and will subject CONSENT DEFENDANT to any and all equitable relief, civil penalties and sanctions authorized by law. In the event that a court of competent jurisdiction makes a determination that a violation of this Consent Judgment's injunctive provisions has occurred, then the CONSENT DEFENDANT shall be liable for civil penalties, as well as any additional attorneys' fees and costs, and other relief as may be allowed by law. 50. In the event of a material default or violation of any injunctive provision contained in this Consent Judgment, the ATTORNEY GENERAL may enforce this Consent Judgment by mechanism of contempt or any other mechanism permissible by law. Further, if such conduct constituting a violation of the Consent Judgment also constitutes a violation of any State or Federal law, rule and/or regulation, then the ATTORNEY GENERAL may exercise any other remedies available by law in order to fully address said conduct. Nothing herein shall be constrned as a limitation to the remedies that the ATTORNEY GENERAL may pursue upon default by the CONSENT DEFENDANT. VIII. EFFECTIVE DA TE 51. The effective date of this Consent Judgment is the date upon which the Consent Judgment is fully executed by the Court and all required Parties. 14 Initials: \\w

SIGNATURES FOLLOW ON SEPARATE PAGES. ' f 15 Imtials: ~l~

STATEOF ~l-c~~ COUNTY OF \U( i/\.{'lj.i_c~(j"'-- Sworn to and subscribed before me this '2-2 day of~ 20 I 5. ~w~ ALEXAND_E_R~W-O-L~F~7R5\==--M~~~- ~ A)~L - -- Print, type or stamp commissioned eame of Notary Public lv'afy}<;_ Personally known or Produced Identification )( (check one) Type ofldentification Produced:jjRIZ.'DtJQ 0.VIN"Q 4eth'SC Subscribed to before me this.,23day of.fjfill J, 2015. JON MUTH Notary Public Arizona Maricopa County My Comm. Expires Jan 20, 2019 Public No ry Signature, a 'zona 1, or stamp commissioned Notary Public) COUNSEL TO DEFENDANT WOLFRAM Walter J. Mathews, Esq., Fla. Bar No: 174319 Mathews Wall ace LLP 212 SE 8th Street, Suite 103 Fort Lauderdale, FL 3 3 3 16 Date: 2015. 16 Initials: \=\-\ µ

STATEOF ~l-c~~ COUNTY OF H IM'\~c~U-.. Sworn to and subscribed before me this '2--:;, day of 2015. ALEXANDER WOLFRiM ~NfhLlb Print, type or stamp commissioned ea:rae of Notary Public N'AM<:, Personally known or Produced Identification )( (check one) Type ofldentification Produced: ARIZ'.Dri? Oe.illt'Q 4 Cfh< '.. Subscribed to before me this.23 day of /JR.I I, 2015. JON MUTH Notary Pubnc Arizona M1rlcopa county My Comm: Expires.Jan 20, 2019 (print, ty Signature, zona, or stamp commissioned Notary Public) Walter J. Mathews, Esq., Fla. Bar No: 174319 Mathews Wall ace LLP 212 SE 8th Street, Suite 103 Fort Lauderdale, FL 33316 Date: '- JI), 2015. 16 Initials: ~\ µ

~~~~~~~~- '2015. OFFICE OF THE ATTORNEY GENERAL FOR THE STATE OF FLORIDA: By~J!JiR.~/(. - Kri steripesi eek Florida Bar No. 109212 Assistant Attorney General Consumer Protection Division Office of the Attome~ General 110 SE 6 1 h Street, 1 at Floor Ft. Lauderdale, Florida 33301 Dated:.rn~~ 5 /x, 2015 //./ / ~/ By: <e;~~~.~~~l---l--~ -- Ri chary-lawson Flori~{Bar No. 165085 Director, Consumer Protection Division Office of the Attorney General The Capitol Tallahassee, FL 32399-1050 (850) 245-0140 Dated:. Ill, r 2 rt '2015 ENTRY OF JUDGMENT DONE and ORDERED in Ft. Lauderdale, Broward County, Florida this ~ '{l~\11;-'"u~~ --. ;\~I j' day of Circuit Judge Thomas M. Lynch cc: Walter J. Mathews, Esq. Fla. Bar No: 174319 Kristen Pesicek, Esq. Assistant Attorney General Florida Bar No. 109212 17