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1 STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS OFFICE OF THE ATTORNEY GENERAL IN THE MATTER OF: AG Number: L MEDICAL MANAGEMENT INTERNATIONAL, INC. d/b/a BANFIELD PET HOSPITAL ~/ ASSURANCE OF VOLUNTARY COMPLIANCE PURSUANT to the provisions of Chapter 501, Part II, "The Florida Deceptive and Unfair Trade Practices Act", Florida Statutes (2012), the STATE OF FLORIDA, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS ("Department") investigated the advertising and business practices ofmedical MANAGEMENT INTERNATIONAL, INC. ("Respondent") related to its marketing of pet wellness plans. Without any admission of wrongdoing, guilt, violation of law, or findings of fact, Respondent hereby agrees to resolve this matter as set forth herein and agrees to the terms and conditions of this Assurance ofvoluntary Compliance ("AVC"). I. STATEMENT OF FACTS 1.1 Respondent is a Delaware corporation which conducts business in Florida. At all times relevant to the Department's investigation, Respondent offered veterinary services to Florida consumers under its trade name, "Banfield Pet Hospital" or its former trade name "Banfield, The Pet Hospital." 1.2 Respondent and its franchisees operate 68 veterinary hospitals in Florida, most located inside PetSmart retail stores. 1.3 Respondent also markets its "Optimum Wellness Plans" (the "Plan(s)") at its veterinary hospitals. These Plans provide consumers with packages of veterinary services offered

2 by Respondent at a discounted price. The Plans are specific to each covered pet, but are not an insurance product. 1.4 Consumers who purchase a Plan enter into a one-year agreement with Respondent. The cost of the Plan can be paid in a lump sum or in monthly installments. Most consumers elect to pay the cost in monthly installments. The Plans automatically renew unless cancelled by the consumer. 1.5 The Department received complaints from Florida consumers about Respondent's Plans, which allege the following: a) Consumers were unaware that the Plans renewed automatically; b) Consumers were unable to transfer a Plan to another pet upon the loss or death of the covered pet; c) Respondent continued to charge consumers the monthly cost of a Plan after the death of the covered pet; and, d) The Plans automatically renewed for a new term when a consumer upgraded or downgraded the services offered under an existing Plan. 1.6 Respondent provided notice to consumers of the material terms of its Plans; however some of the terms, which consumers complained about, were disclosed on separate documents and not within the Plan contracts. 1.7 Prior to, and not connected with the Department's investigation, Respondent instituted a policy to fairly evaluate consumer requests for refunds and cancellations related to its Plans. As a part of this policy, Respondent regularly provides refunds or forgiveness of Plan balances based on individual consumer circumstances related to the consumer's request.

3 1.8 For the avoidance of doubt, Respondent makes no admission whatsoever of any violation of any applicable law, rule, and/or regulation pertaining to Respondent's business practices, including, but not limited to the Florida Deceptive and Unfair Trade Practices Act, as contained in Chapter 501, Part II, Florida Statute (2012). II. DEFINITIONS 2.1 "Respondent" means Medical Management International, Inc. and its successors, assigns, franchisees, and licensees. 2.2 "Clear and Conspicuous" (including "Clearly and Conspicuously") means 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 or 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

4 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 h) Whether it appears for a duration of time sufficient to allow a listener or viewer to have reasonable opportunity to notice, read, and understand. 2.3 "Material" means likely to affect a consumer's choice of, or conduct regarding, a Plan or Pet Health Plan. 2.4 "Pet Health Plan" means any plan for providing packages of discounted veterinary or other pet-related services and/or products offered to consumers by Respondent, including the Plans. III. COMPLIANCE TERMS 3.1 In connection with the marketing, offering, sale or administration of any Plan or other Pet Health Plan, Respondent shall continue to comply with all applicable laws, rules, and/or regulations pertaining to Respondent's business practices, including, but not limited to the Florida Deceptive and Unfair Trade Practices Act, as contained in Chapter 501, Part II, Florida Statute (2012). 3.2 When marketing a Plan or any other Pet Health Plan to a consumer, Respondent shall Clearly and Conspicuously disclose to the consumer all Material terms of such Plan or other Pet Health Plan prior to the consumer's purchase. 3.3 Any Material terms of a Plan or any other Pet Health Plan that are not Clearly and Conspicuously disclosed in an agreement or other writing which a consumer signs as part of the

5 purchase transaction shall be Clearly and Conspicuously disclosed in a separate written document signed by consumer at the time of the purchase. 3.4 With respect to any Plan or other Pet Health Plan which automatically renews upon the expiration of its initial term or any subsequent term, Respondent shall obtain a separate, written affirmative acknowledgement of, and consent to the automatic renewal from the consumer at the time of the consumer's purchase of the Plan or other Pet Health Plan. IV. MONETARYTERMS 4.1 Respondents are directed to pay the Department the total sum of Twenty Thousand Dollars and no/1 00 ($20,000.00) for reimbursement of its attorney's fees, future monitoring and costs of investigation. Payment shall be made payable to the Department of Legal Affairs Revolving Trust Fund. Upon receipt, the check shall be deposited into the Department of Legal Affairs Revolving Trust Fund, in accordance with Section (1), Florida Statutes (2012). 4.2 Restitution in this matter is not accurately discemable and Respondent demonstrated to the Department that it voluntarily made efforts to fairly provide consumer refunds or balance forgiveness when appropriate. In lieu of additional restitution, Respondent shall voluntarily make a donation in the amount of Twenty Thousand Dollars and no/100 ($20,000.00), to the University of Florida College of Veterinary Medicine for the stated purpose of continuing the College's tradition of caring for sick and injured animals and educating future veterinarians. Payment shall me be made payable to "UF Foundation, INC." with a memo notation of"for VetMed Dean's Fund "

6 4.3 All payments described in paragraphs 4.1 and 4.2 ofthis A VC shall be sent, along with the executed A VC, to the following address: Office of the Attorney General Division of Consumer Protection Attn: Jerrett Brock, Assistant Attorney General 135 West Central Boulevard, Suite 1000 Orlando, Florida V. EFFECT AND APPLICABILITY 5.1 This A VC shall apply to and continuously bind Respondent and Respondent shall not affect any change in the form of doing business or organizational identity as a method of avoiding the terms and conditions set forth in this AVC. 5.2 The Effective Date ofthis AVC is the date on which the AVC is fully executed by the parties. This will be the date that the A VC is signed by the Director of Economic Crimes, or designated representative. Respondent shall not become bound by the Compliance Terms of this A V C, as prescribed in paragraphs 3.1 through 3.4, until 90 (Ninety) days from the Effective Date. 5.3 The receipt of or deposit by the Attorney General of any monies pursuant to this AVC does not constitute acceptance by the Attorney General, and monies received will be returned if this A V C is not accepted. VI. FUTURE VIOLATIONS 6.1 Pursuant Section (6), Any subsequent failure to comply with the provisions of this AVC is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes (2012), and the Attorney General reserves the right to seek Chapter 501 penalties for any future violation(s).7.2

7 6.2 Respondent shall not represent, directly or indirectly, that the Attorney General has approved any of the Respondent's business practices or business structure, nor shall Respondent use the existence ofthis AVC to imply such approval. <This space intentionally left blank>

8 BY MY SIGNATURE I hereby affirm that I am acting in my capacity and within my authority as a corporate officer of Respondent and that by my signature I am binding Respondent to the terms and conditions ofthis AVC. MEDICAL ANAGEMENT INTERNATIONAL, INC. fis: President & CEO STATE OF OREGON COUNTY OF m\..u. ~O(Y"\o...\A BEFORE ME, an officer duly authorized to take acknowledgments in the State of ~, person~lly ~ppeared ~ U<..~., who acknowle~g~d before me that he executed the foregomg mstrument for the purposes therem stated, on th1s 2.D day of ~,2013. Sworn to and subscribed before me this m day of ~, OFFICIAL SEAL ANNIE THAO T NGUYEN NOTARY PUSUc-oREGON COMMISSION NO. A MY COMMISSION EXPIRES JULY 04, 2014 ~ State ofc:r~ Type of identification produced: Driver License # ~-~

9 FOR THE OFFICE OF THE ATTORNEY GENERAL Assistant Attorney General OFFICE OF THE ATTORNEY GENERAL Division of Economic Crimes 135 West Central Blvd., #1000 Orlando, Florida (407) , fax Date: 3 }~} I J. Q )J I I Director of Economic Crimes OFFICE OF THE ATTORNEY GENERAL The Capitol Tallahassee, Florida /01106/ v2