FLAMEL COLLEGE AFFILIATE PROGRAM

NOTICE

New Law Forces Termination of Affiliate Program

For nearly a decade, our Affiliate Program has worked to benefit hundreds of our partners. However due to a new law passed in California in June 2011, we are forced to close our Affiliate Program immediately.

The new law specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by marketing affiliates like you - even if those retailers have no physical presence in the state.

As a small California corporation, we oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

As of June 30, 2011, affiliates will no longer receive advertising fees for sales referred to us. Please be assured that all qualifying advertising fees earned before the termination date will be processed and paid in full in accordance with the Affiliate Agreement. As per the agreement, PayPal accounts with more than a $25 balance are paid on the first of each month. Checks for balances above $25 are sent quarterly (every third month) and are subject to a $3 handling fee.

We have enjoyed working with you in our Affiliate Program and regret the attack on small businesses that is going on in California.

Sincerely,

The Affiliate Team