Plaintiffs, -against- IAS Part 5 Justice Kathryn E. Freed. WHEREAS Eric T. Schneiderman, Attorney General of the State of New York

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1 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK X THE PEOPLE OF THE STATE OF NEW YORK, by ERIC T. SCHNEIDERMAN, Attorney General of the State of New York, and BENJAMIN M. LAWSKY, Superintendent of Financial Services, Plaintiffs, Index No /2014 CONSENT AND STIPULATION -against- IAS Part 5 Justice Kathryn E. Freed LYFT, INC., Defendant X WHEREAS Eric T. Schneiderman, Attorney General of the State of New York ( Attorney General ) and Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York ( Superintendent of Financial Services ) believe that resolution of the above entitled proceeding to be in the public interest; IT IS HEREBY ACKNOWLEDGED, STIPULATED, CONSENTED TO, AND AGREED, by and between the Attorney General, the Superintendent of Financial Services (together, Plaintiffs ), and Defendant Lyft, Inc. ( Defendant or Lyft ), that: 1. Defendant has received a copy of this Consent and Stipulation and the annexed Consent Order and Judgment (the Consent Order ), knows the contents thereof and understands the obligations and duties imposed by such Consent Order; 2. This Consent and Stipulation is entered into by Defendant as its own free and voluntary act with the full knowledge and understanding of the nature of this action and the obligations and duties imposed upon it by the Consent Order, and Defendant consents to the entry thereof without further notice; 1

2 3. In consideration of Lyft s agreement to the terms in the Consent Order, and in resolution of the claims asserted in this action by Plaintiffs, the Attorney General and the Superintendent of Financial Services release and forever discharge Lyft and all of its past and present principals, directors, officers, employees, successors or assignees, attorneys, and agents and any corporation, company, business entity, or other entity or device through which Lyft may now or hereafter act or conduct business (collectively, the Released Parties ), for the causes of action that were asserted or could have been asserted against the Released Parties by the Attorney General or the Superintendent of Financial Services based on the facts alleged in the Complaint in this action, including causes of action under New York Insurance Law 2102, 2117, 2122, 2324 and 11 NYCRR 153 (Insurance Regulation 135), Vehicle and Traffic Law and 501.2(v), Business Corporation Law 1301, Buffalo City Code Ch. 437 and Rochester City Municipal Code Ch. 108, or any amendments thereto, General Business Law 349 and 350 and Executive Law 63(12), up to and including August 1, 2014, provided that nothing herein shall i) preclude the Attorney General or Superintendent of Financial Services from enforcing compliance with the Consent Order or ii) be construed to cover claims of any type by any other state agency (or Commisssioner or Superintendent of a state agency other than the Department of Financial Services), even if represented by the Attorney General, or municipality. 4. Other than the release set forth in paragraph 3 above, no promises, offers, agreements or inducements of any nature whatsoever have been made to Defendant by Plaintiffs or their attorneys or any employee in the Office of the Attorney General of the State of New York or the New York Department of Financial Services to procure this Consent and Stipulation; 2

3 5. The Defendant agrees that this Court shall retain jurisdiction over this matter for the purpose of enforcing the terms of the Consent Order; 6. All notices and other communications regarding this Consent and Stipulation and the Consent Order shall be sent to: If to the Plaintiffs: New York State Department of Financial Services One State Street New York, New York Attention: Joy Feigenbaum, Executive Deputy Superintendent and New York Attorney General 120 Broadway New York, NY Attention: Jane Azia, Bureau Chief If to Defendant: Sidley Austin LLP Attorneys for Defendants 787 Seventh Avenue New York, NY Attention: Martin Jackson Andrew Holland 6. Nothing contained in the annexed Consent Order constitutes approval or authorization by the Attorney General or the Superintendent of Financial Services of Defendant s practices, and Defendant shall not make any representations to the contrary. 3

4

5 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK X THE PEOPLE OF THE STATE OF NEW YORK, by ERIC T. SCHNEIDERMAN, Attorney General of the State of New York, and BENJAMIN M. LAWSKY, Superintendent of Financial Services, Plaintiffs, Index No /2014 CONSENT ORDER AND JUDGMENT -against- IAS Part 5 Justice Kathryn E. Freed LYFT, INC., Defendant X WHEREAS, Plaintiffs, the People of the State of New York by Attorney General Eric T. Schneiderman ( Attorney General ) and Superintendent of Financial Services of the State of New York Benjamin M. Lawsky ( Superintendent ) filed their complaint on July 11, 2014, alleging that Lyft, Inc. ( Lyft ) violated, among other laws, the New York State Insurance Law and regulations promulgated thereunder; WHEREAS, Plaintiffs and Defendant have executed the Consent and Stipulation annexed hereto and incorporated herein for the purpose of settling the above-captioned action before the Court; IT NOW APPEARS that Defendant Lyft is willing to enter into this Consent Order and Judgment ( Consent Order ) to resolve the alleged violations of law set forth in the Complaint, including alleged violations of New York Insurance Law 2102, 2117, 2122, 2324 and 11 1

6 NYCRR 153 (Insurance Regulation 135), Vehicle and Traffic Law and 501.2(v), Business Corporation Law 1301, Buffalo City Code Ch. 437 and Rochester City Municipal Code Ch. 108; NOW, on motion of Eric T. Schneiderman, Attorney General of the State of New York and Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York, and upon the consent of Defendant Lyft, it is hereby: PARTIES SUBJECT TO JUDGMENT 1. ORDERED, ADJUDGED AND DECREED that this Consent Order shall extend to Lyft or anyone acting on its behalf, including but not limited to Lyft s principals, directors, officers, employees, successors or assignees, and agents in active concert or participation with any of the foregoing who are involved in the conduct of business that is the subject of this litigation; and to any corporation, company, business entity, or other entity or device through which Lyft may now or hereafter act or conduct business that is the subject of this litigation; GENERAL INJUNCTIVE RELIEF 2. ORDERED, ADJUDGED AND DECREED that Lyft shall not operate in New York State unless Lyft requires that all Lyft drivers in New York State have auto insurance policies in place, issued by authorized insurers on a policy form and with rates filed and/or approved by the Superintendent as required under Insurance Law Article 23 that provide coverage meeting the financial responsibility requirements of the New York Vehicle and Traffic Law and requirements of the New York Insurance Law and regulations promulgated thereunder, 2

7 and that provide coverage during each of the following three distinct periods: (A) the period running from when the driver has the Lyft app turned on in order to receive requests to pick up a passenger, (B) the period running from when the driver has accepted a request through the Lyft app to pick up a passenger and is driving to the passenger, and (C) the period running from when the driver begins transporting a passenger that the driver picked up until reaching the passenger s destination. If Lyft learns that a driver does not have an auto insurance policy in place that complies with this paragraph, Lyft shall immediately block the driver from being able to receive requests to pick up passengers through the Lyft app and block the driver from driving for Lyft, until the driver has obtained such insurance; 3. ORDERED, ADJUDGED AND DECREED that Lyft shall not offer, sell or provide to New York drivers any insurance policy, including excess liability coverage, unless such policy complies with the New York Insurance Law and regulations promulgated thereunder, including but not limited to: (a) the policy form and the rates have been filed and/or approved by the Superintendent as required under Insurance Law Article 23, and (b) the policy is written by an authorized insurer; 4. ORDERED, ADJUDGED AND DECREED that Lyft shall not solicit, negotiate or sell insurance in New York unless Lyft obtains an insurance producer license from the Department of Financial Services or becomes exempt therefrom pursuant to a change to the New York Insurance Law and/or regulations promulgated thereunder; 5. ORDERED, ADJUDGED AND DECREED that Lyft shall not solicit, negotiate or sell insurance in New York written by an unlicensed or unauthorized insurer or otherwise aid such an insurer in doing business in New York; 3

8 6. ORDERED, ADJUDGED AND DECREED that Lyft shall not, by advertisement or public announcement in New York, call attention to an unauthorized insurer; 7. ORDERED, ADJUDGED AND DECREED that Lyft shall not require as a condition of membership in Lyft s program, that New York drivers are insured under a specified insurance policy; 8. ORDERED, ADJUDGED AND DECREED that whenever Lyft intends to launch its service in any new area in New York it shall inform the Superintendent, the Attorney General, and the counsel of any municipality or other jurisdiction in New York state where it intends to launch its service at least 3 weeks before such a launch; 9. ORDERED, ADJUDGED AND DECREED that Lyft shall, for all operations in New York State, comply with all applicable New York State and municipal laws as applied by the applicable governmental authorities; 10. ORDERED, ADJUDGED AND DECREED that within ten days of entry of this Consent Order Lyft shall pay to the State of New York the sum of Three Hundred Thousand Dollars ($300,000.00) as penalties; 11. ORDERED, ADJUDGED AND DECREED that upon the request of the Superintendent or the Attorney General, Lyft shall provide all documentation and information reasonably necessary for the Superintendent or the Attorney General to verify compliance with this Consent Order; GENERAL PROVISIONS 12. ORDERED, ADJUDGED AND DECREED that the Consent and Stipulation is incorporated herein with the same force and effect as if fully set forth herein; 4

9 13. ORDERED, ADJUDGED AND DECREED that this Consent Order constitutes the entire agreement between Plaintiffs and Lyft and supersedes any prior communication, understanding or agreement, whether written or oral, concerning the subject matter of this Consent Order; 14. ORDERED, ADJUDGED AND DECREED that in the event that one or more provisions contained in this Consent Order shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Consent Order; 15. ORDERED, ADJUDGED AND DECREED that Lyft may petition the Superintendent and the Attorney General to modify this Consent Order based upon a change in New York state and municipal law and the Superintendent may amend Paragraphs 2-9 of the General Injunctive Relief and the Attorney General may amend Paragraphs 8 and 9 of the General Injunctive Relief, based upon a change in New York state and/or municipal law, to conform to such change in law, which amendment shall be submitted to the Court for approval; 16. ORDERED, ADJUDGED AND DECREED that nothing in this Consent Order shall be construed as relieving Lyft of its obligations to comply with all applicable laws, regulations, and rules, or as granting Lyft permission to engage in any acts or practices prohibited by such law, regulation, or rule; 17. ORDERED, ADJUDGED AND DECREED that Lyft shall not state or imply or cause to be stated or implied that the Attorney General or the Superintendent has approved, sanctioned, or authorized any practice, act, or conduct of Lyft; 18. ORDERED, ADJUDGED AND DECREED that the clerk is hereby directed to enter this Consent Order forthwith; 5

10 19. ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Consent Order; 20. ORDERED, ADJUDGED AND DECREED that this Consent Order is hereby deemed a decision and Order which shall be entered by the clerk of the Court. SO ORDERED: Dated: New York, NY June, 2015 ENTER: Justice Kathryn E. Freed 6

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