NOTICE OF PROCEEDINGS TO APPROVE SETTLEMENT AMONG RECEIVER, MERRILL LYNCH, PIERCE, FENNER &; SMITH INCORPORATED, AND THE STATE OF VERMONT DEPARTMENT OF FINANCIAL REGULATION AND BAR ORDER

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO.: 16-cv-21301-GAYLES
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
v.
ARIEL QUIROS,
WILLIAM STENGER,
JAY PEAK, INC.,
Q RESORTS, INC.,
JAY PEAK HOTEL SUITES L.P.,
JAY PEAK HOTEL SUITES PHASE II. L.P.,
JAY PEAK MANAGEMENT, INC.,
JAY PEAK PENTHOUSE SUITES, L.P.,
JAY PEAK GP SERVICES, INC.,
JAY PEAK GOLF AND MOUNTAIN SUITES L.P.,
JAY PEAK GP SERVICES GOLF, INC.,
JAY PEAK LODGE AND TOWNHOUSES L.P.,
JAY PEAK GP SERVICES LODGE, INC.,
JAY PEAK HOTEL SUITES STATESIDE L.P.,
JAY PEAK GP SERVICES STATESIDE, INC.,
JAY PEAK BIOMEDICAL RESEARCH PARK L.P.,
AnC BIO VERMONT GP SERVICES, LLC,
Defendants,
JAY CONSTRUCTION MANAGEMENT, INC.,
GSI OF DADE COUNTY, INC.,
NORTH EAST CONTRACT SERVICES, INC.,
Q BURKE MOUNTAIN RESORT, LLC,
Relief Defendants, and
Q BURKE MOUNTAIN RESORT, HOTEL AND
CONFERENCE CENTER, L.P.,
Q BURKE MOUNTAIN RESORT GP SERVICES, LLC
Additional Defendants
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NOTICE OF PROCEEDINGS TO APPROVE SETTLEMENT
AMONG RECEIVER, MERRILL LYNCH, PIERCE, FENNER
& SMITH INCORPORATED, AND THE STATE OF VERMONT
DEPARTMENT OF FINANCIAL REGULATION AND BAR ORDER

PLEASE TAKE NOTICE that Michael I. Goldberg, as the Court-appointed receiver (the
“Receiver”) of the entities (the “Receivership Entities”) in the above-captioned civil enforcement

PLEASE TAKE FURTHER NOTICE that the material terms of the Settlement Agreement
are that Merrill will pay Four Million Five Hundred Thousand Dollars ($4,500,000.00) in
exchange for broad releases from the Receiver, and Receivership Entities, Vermont DFR, and the
Bar Order; Four Million Dollars ($4,000,000.00) relates to the Receiver’s potential claims and
Five Hundred Thousand Dollars ($500,000.00) relates to the Vermont DFR’s potential claims.
PLEASE TAKE FURTHER NOTICE that copies of the Settlement Agreement; the Motion
for (i) Approval of Settlement between Receiver, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, and the State of Vermont Department of Financial Regulation; (ii) Approval of
Form, Content, and Manner of Notice of Settlement and Bar Order; (iii) Entry of Bar Order; and
(iv) Scheduling a Hearing; with Incorporated Memorandum of Law [D.E. 710] (the “Motion”); the
proposed Bar Order; and other supporting and related papers, may be obtained from the Court’s
docket in the SEC Action or from the website created by the Receiver
(www.JayPeakReceivership.com). Copies of the Motion may also be obtained by email request
to Kimberly Smiley at kimberly.smiley@akerman.com or by telephone by calling Ms. Smiley at
954-759-8929.

PLEASE TAKE FURTHER NOTICE that the final hearing on the Motion, at which time
the Court will consider approval of the Settlement Agreement including the grant of the releases
and the issuance of the Bar Order, is set by Zoom before the Honorable Darrin P. Gayles, the
United States Courthouse, 400 North Miami Avenue, Miami, Florida 33128, in Courtroom 11-1,
at 10:00 A.M. on March 11, 2022 (the “Final Approval Hearing”). The link for the Zoom hearing
will be circulated before the Final Approval Hearing.

Any objection to the Settlement Agreement, the Motion or any related matter, including,
without limitation, entry of the Bar Order, must be filed, in writing, with the Court in the SEC

Action, and served by email and regular mail, on: (1) Michael I. Goldberg, Esq., Akerman LLP,
The Main Las Olas, 201 East Las Olas Boulevard, Suite 1800, Fort Lauderdale, FL 33301, Email:
michael.goldberg@akerman.com; (2) Jeffrey C. Schneider, Esq., Levine Kellogg Lehman
Schneider + Grossman, LLP, 201 S. Biscayne Blvd., 22nd Floor, Miami, FL 33131, Email:
jcs@lklsg.com; (3) Timothy P. Burke, Esq. and Jeff Goldman, Esq., Morgan, Lewis & Bockius
LLP, One Federal Street, Boston, MA 02110-1726, Emails: timothy.burke@morganlewis.com and
jeff.goldman@morganlewis.com; and (4) Jennifer Rood, Esq., Assistant General Counsel,
Vermont Department of Financial Regulation, 89 Main Street, Montpelier, VT 05620-3101, Email:
jennifer.rood@vermont.gov, no later than February 9, 2022 (the “Objection Deadline”), and
such objection must be made in accordance with the Court’s Order (I) preliminarily approving
settlement between Receiver, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and the State
of Vermont Department of Financial Regulation; (II) approving form and content of notice, and
manner and method of service and publication; (III) setting deadline to object to approval of
settlement and entry of bar order; and (IV) scheduling a hearing [D.E. 711] (the “Preliminary
Approval Order”).

PLEASE TAKE FURTHER NOTICE that any person or entity failing to file an objection
on or before the Objection Deadline and in the manner required by the Preliminary Approval Order
shall not be heard by the Court. Those wishing to appear and present objections at the Final
Approval Hearing must give notice in their written objection that they intend to appear at the Final
Approval Hearing. If no objections are timely filed, the Court may cancel the Final Approval
Hearing without further notice.

This matter may affect your rights. You may wish to consult an attorney.

1 Defined terms used but not defined in this Notice are more fully defined in the Settlement Agreement.

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