UM TED STATESDISTRICT COURT

SOUTHERN DISTRICT OFFLORIDA

CaseNo. 22-20516-CR-W ILLIAM S

UNII'ED STAT:SOFAM ERICA

VS.

KLOUD9M NE,LLC,

Defendant/

PLEA AGREENX NT

TheUnitedStatesAttorney'sOfûcefortheSouthernDistrictofFloridaCthisOffi8e'')and

KLOUD9NINE,LLC.(hereinaffertheRdefendant''orCIKI,OUD9NINE''Ienteriptothefpllowing

pleaagreementpursuanttoRule11oftheFederalRulesofCrim inalProcedure.

GuiltyPlea

A. Thedefendantagreestopbeadguiltytotheone-countInformationtsledagainstit

which chargesthatthedefendantdidwilfuly,withtheintenttofurthertheobjectofthe

conspiracy,andknowingly combine,conspire,confederate,andagreewitheaçh other,andFith

otherpersonsbothknownandunknowntothisOffice,to commitanoffenseagainstthelawsof

theUnited States,namely to knowingly,tamperwith,and assist,in tamperingwith,andrender

inaccurateanymonitoringdevioeandm ethodrequiredtobemaintainedandfollowedunderthe

CleanAirAct,inviolationofTitle18,UnitedStatesCode,Section371andTitle42,UnitedStates

Code,Section7413(c)(2)(C).

B. Thedefendantagreestoadm itthatitisinfactguilty oftheoffensechargedinthe

lnformation and thatthe attached JointFactualStatementdated thissam e day isan accurate

statementofitsconduct.

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11.

A.

Cop orateAuthorizàtionaizd0rganizationalChanges

Thedefendantwillprovidewritten evidenceintheform ofanotarigedresolution

ofthe Board ofDirectorswith b0th notary and cop orateseals,certifying'thatKloudgNine is

authorizedtopleadguiltytothefelonyoffensesetforth inthelnformation,andto enterintoand

comply with a1lprovisionspfthisplea agreem ent. Theresoltltion shallfurthprcertify thatits

M anagerisauthorized to taketheseactionsand thatallcorporatefonnalitiesrequired forsuch

authorization have been observed. The defendantagreesthàtitsM angerjEric Flaquer,shall

appeaionbehalfofthecompanytoentertheguiltypleaandforimpositionofthesentenceinthe

UnitedStatesDistrictCoul fortheSouthem DistrictofFlorida.

B. In consideration oftheundertakingsherein,KloudgNine expressly agreesthatit

shallnot,through abusinesstransaction ofanytype,including butnotlim itedto,achangeof

name,businessreorganization,saleorpurchase ofassets,divestiture ofassets,orany similar

action,sçek to avoidtheobligationsandconditiopssetforth inthisple;agreemept. Thisplea

agreement,togetherwithalloftheobligationsandtenusthereof,shallinuretothebenefitofand

bindassigneesy.successors-in-interest,ortransfereesofthedefendant.

111. SentencinRGuidelinesandPenalties

The defendantis aware thatthe sentence willbe imposed by the

considering the advisory FederatSentencing Guidelinesand Policy Statements(hereinafter

-sentencing Guidelines''). The'defbndantacknowledgesandunàerstandsthatthe courtwill

computeanadvisoryseptenceundertheSentencingGuidelinesandthattheapplicableguideljnes

willbedeterminedbytheCourtrelyinginpartontheresultsofapre-sentenceinvestigationbythe

A. Courtafter

Court'sprobationoffice,whichinvestigationwillcommenceaftertheguiltypleahasbeenentered.

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Thedefendantisalso awarethat,undercertain circum stances,the Courtmay departfrom the

advisot'y sentencing guidelinerangethatithasoom puted,andm ay raiseorlowerthatadvisory

sentenceundertheSentencingGuidelines. Thedefendantisfurtherawareandunderstandsthat

theCourtisrequiredto considertheadvisoryguidelinerangedetermined underthe Sentencing

Guidelinesbutisnotboundtoimposethatsentence;theCourtispenùittedtotailortheultimate

sentenceinlightofotherstatutoryconcerns,andsuchsentencemaybeeithermoresevereorless

severe than the Sentencing Guidelines'advisory range. Knowing these facts,the defendant

undersundsandacknowledgesthattheCourthastheauthoritytoimposeanysentencewithinand

uptothestatutorym aximum authorizedby1aw fortheoffenseidentified in Section1.A andthat

thedefendantm aynotwithdraw thepleasolelyasaresultofthesentenceimposed.

B. ThedefendantalsounderstandsandacknowledgesthattheSentencingGuidelines

advisoryprovisionsrelatingtothesentencingoforganizations(ChapterEight)donotapplytothe

impositàonoffnesforenvironmentalcrimessuch asthosechargedin theInformation. See

SentencingGuidelinesSection8C2.1(CommentarpBackground). Thepartiesagreethatthe

statutorymaximum amountofthefinetobeimposedunderthestatutechargedinCount1isthe

greatestof: $500,000,Title 18,United StatesCode,Section 3571(c)(5),ortwicethe gross

pecuniarygainorgrosslossresultingfrom theoffense,pursuanttoTitle18,UnitedStatesCode,

Section3571(d). Thedefendantalsounderstandsthatitmaybesubjecttoaterm ofprobationof

notmorethanfsveyearswithrespecttoCount1. Title18,UnitedStatesCode,Section3561(c)(1)

and(2). ThedefendantfurtherunderstandstheCourtmayorderrestitmiontoanyascertainable

victim of the offense conductpursuantto Title 18,United States Code,Section 3663 and

SentencingGuidelinesSectionSEI.I.

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C. The defendantfurther understands and acknowledges that,in addition to any

sentenceimposed,aspecialassessmentintheamountof$400.00willbeimposedonthedefendant

with respectto Count 1,payable to the Gclerk,United SàtesDistrictCourt''atthetime of

sentencing. Title18,UnitedStatesCode,Section3013(a).

D. ThisOffkereservestherightto inform theCourtandtheprobation oftk eofall

factspertinenttothesentencingprocess,includinga11relevantinform ationconcerningtheoffense

committed,whethercharged,aswellasconcem ingthedefendantandthedefendant'sbackgrotmd.

Subjectonlytotheexpresstermsofanyagreed-uponsentencingrecommendationscontainedin

thispleaagreem ent,thegovernmentfurtherreservestherighttomakeanyrecomm endationsasto

thequalityandquantityofpunishment.

E. ThedefendantisaFarethatthesentencehasnotyetbeendeterminedbytheCourt.

Thedefendantalsoisawarethatanyestimateoftheprobablesentencingrangeorsentencethatthe

defendantmayreceive,isapredidion,notapromise,andisnotbindingonthegovernm ent,the

probation(lfficeortheCourt. Thedefendantfurtherunderstandsthatanyrecommendationthat

thisOffce makesto the Courtasto sentencing,whetherpursuantto thisplea agreementor

otherwise,isnotbinding onthe Courtandthe Courtmay disregardtherecommendation in its

entirety. Thedefendantunderstandsandacknowledges,aspreviouslyacknowledgedinSection

III.A.above,thatthedefendantmaynotwithdraw itspleabasedupontheCourt'sdecisionnotto

acceptasentencingrecommendation madebythedefendant,thisOffice,orarecommendation

madejointlybyboththedefendantandthisOffke.

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IV. SentenceRecommendation

ThisOftkeandthedefendantagreethat,althoughnotbindingontheprobationofficeor

'

z

thecouit,theywilljointlyrecommendtotheCourt,thatundertheadvisprySentenci.ngGuidelines,'

$

thefollowingfindingsandconclusionswould correctly representthecalculationofareasonable

andappropriatesentence. Further,neitherparty shalladoptnofargueanypositionwith respect

tosentencinginthismattercontrarytothefollowingrecomm endations:

A. Thepartiesagreetorecommend thatthedefendantbeplaced on organizatipnal

probationforaperiodofthreeyears;

B. The parties agree to recommend, as a special çondition of probation, that

KloudgNineagreestoplaceafull-pagepublicapologyintheSpecialtyEquipment

MarketAssociation(t;SEMA'')tradeassociationpiintedandonlinepublicationat .

the2023AutomotiveAftermarketIndustryW eekSEM A Show,aswellasina2023

editionofCarandDriver. Thecontent,includinganysubstitutionofpublication,

mustbeapprovedbyEPA with3o-days'notice.

The.partiesreservetherighttoargueatsentencingonanappropriatecriminalfine

pursuanttoTitle18,United StatesCode,Section3571andinconsideration ofthe

factorsenumeratedinTitle18,UnitedStatesCode,Section3572.

C.

V. AdditionalLiability

ThisOftk eagreesthatinreturn forthedefendant'srepresentationsandtmdertakingsin

thisagreement,thisOfficewillnottileadditionalcriminalchargesagainstitin the Southem

DistrictotkFloridaforviolationsassociatedwithCleanAirActtamperingandrelatedoffenses, as

ofthedateofthesigningofthispleaagreement. Thispleaagreementdoesnötprovideorpromise

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anywaiverofanyothercriminal,civil,oradm inistrativeactionsthatm ayapply,includingbutnot

lim itedto:fines,penalties,claimsfordamagestonaturalresources,suspenjion,debarment,listingj

licensing,injunctive relietl or remedialaction to comply with any applicable regulatory

requirement.

VI. ExnressW aiverofRixhttoApoealGuiltvPleaandSentence

ThedefendantijawarethatTitle28,UnitedStatesCode,Section1291andTitle18,United

,

e'

StatesCode,Section 3742affordsthedefendanttherighttoappealthesentenceimposedinthis

case. Acknowledgingthis,inexchangefortheundertakingsmadebytheUnited Statesinthis

pleaagreem ent,thedefendanthereby waivesa11rightsconferred by Sections1291and 3742to

appealanysentenceimposed,includinganyrestitutionorder,ortoappealthemannerinwhichthe

sentencewasimposed,unlessthesentenceexceedsthemaximum permitted by st.atuteoristhe

resultofan upwarddepartureand/oravariancefrom theadvisoryguidelinerangethattheCourt

establishesatsentencing. Thedefendantfurtherunderstandsthatnothinginthisagreem entshall

affectthegovernment'srightand/ordutyto appealassetforthin Title 18,UnitedStatesCode,

Section3742(1$andTitle28,UnitedStatesCode,Section1291.However,iftheUnitedStates

appealpthedefendant'ssentencepursuanttoSection3742*)and1291,thedefendantshalbe

releasedfrom theabovewaiverofitsappellaterights.

By signingthisagreement,thedefendantacknowledgesthatthedefendanthasdiscussed

r .

theappealwaiversetforthinthisagreem entwiththedefendant'sattorney. Thedefendantf'urther

agrees,togetherwith this Oftsce,to requestihatthe Courtenter a specific finding thatthe

defendant'swaiverofitsrighttoappealthesentenceimposedinthiscaseanditsrighttoappeal

itsconvictioninthemarmerdescribedabovewasknowingandyoluntary.

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VII. BindinaFinalAareement

Thisisthe entireagreementand understanding between thisOffice and the defendant.

Therearenootheragreements,prom ises,representations,orunderltandings.

Respectfullysubm itted,

DATE:llc7Ic3

M ARKENZY LAPOINTE

UNITED STATESATTORNEY

B p/r

y: .

JodlA.M azer

SpecialAssistantUnitedStatesAttorney

DATE:!Tl>$

ovs: ) :-.3

REPRESENTATIVESoFDEFENDWNT

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A'rroltxsv oRo FE% AXT

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1c,0 ,ELc.

DEFE

BY ERICFLAQUER,MANAGER

By:

By:

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