UNITED STATED DISTRICT COUNT EASTERN DISTRICT OF NEW YORK ----------------------- X JUNE ROBERTS, ANITA BRADLEY, ELIZABETH GARDNER and SUFFOLK INDEPENDENT LIVING ORGANIZATION (SILO) Plaintiffs, CV 03-2495 (ETB) -against­- GURNEY'S INN RESORT & SPA, LTD., Defendant. --------------------------------------------------------------------­----------X NOTICE OF SETTLEMENT OF CLASS ACTION AND SETTLEMENT OF HEARING TO: ALL PERSONS WHO, BY VIRTUE OF A DISABILITY, ARE COVERED BY AND ENTITLED TO THE PROTECTIONS OF THE AMERICANS WITH DISABILITIES ACT, 42 U.S.C § 12182 et seq. (THE "ADA"), THE FAIR HOUSING ACT, 42 U.S.C. § 3601 (THE "FHA") AND THE NEW YORK STATE EXECUTIVE LAW, SECTION 296 (THE "NYSEL"). PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY, THIS NOTICE RELATED TO A PROPOSED SETILEMENT OF THIS LITIGATION AND CONTAINS IMPORTANT INFORMATION REGARDING YOUR RIGHTS. NOTICE IS HEREBY GIVEN that: (a) June Roberts, Anita Bradley, Elizabeth Gardener and Suffolk Independent Living Organization (SILO) (collectively the "Plaintiffs") and Gurney's Resort & Spa, Ltd. ("Gurney's") entered into a Stipulation of Settlement (the "Stipulation") settling this class action upon certain terms and conditions (the "Action"); (b) pursuant to an Order of the Honorable E. Thomas Boyle, United States Magistrate Judge, (the "Order"), this action was conditionally certified as a class action pursuant to Rule 23(b )(2) of the Federal Rules of Civil Procedure for settlement purposes only, the class consisting of all persons who, by virtue of a disability are covered by and entitled to the protections of the ADA, FHA and/or NYSEL; and (c) pursuant to the Order and Rule 23(e) of the Federal Rules of Civil Procedure, a hearing will be held on March 16, 2005 at 9:30 a.m. (the "Hearing") in Courtroom 830, of the United States District Court for the Eastern District of New York, 100 Federal Plaza, Central Islip, New York, for the purpose of determining whether the terms of the Stipulation are fair, reasonable and adequate and should be approved by the Court and the amount of attorneys' fees, costs and disbursements that shall be awarded and reimbursed to Class Counsel. The Hearing may be adjourned by the Court from time to time without further notice. NATURE OF THE ACTION This action arose from defendant Gurney's alleged failure to comply with the ADA, FHA and NYSEL with respect to the resort facilities belonging to Gurney's located at 290 Old Montauk Highway, Montauk, New York on the grounds that the facilities failed to meet the accessibility requirements under the foregoing Acts with respect to persons suffering mobility, visual and audio impairments. The action seeks injunctive relief, requiring that various changes be made to the resort facilities and that various accommodations be provided to timeshare owners, guests and visitors at the resort, facilitating access to the accommodations and services provided to timeshare owners, guests and visitors. 2 POSITION OF DEFENDANTS AND RECOMMENDATION OF CLASS COUNSEL The defendant denies any wrongdoing or liability and has agreed to enter into the settlement in order to eliminate all controversies with the Class and to avoid further expense, inconvenience, and distraction created by potentially burdensome and protracted litigation. The plaintiffs, through their attorney, have conducted a thorough investigation of the facts and the law raised in the class action complaint, have conducted substantial discovery, have inspected the resort and have reviewed pending and contemplated building plans and have reviewed and analyzed the law applicable to the present proceeding. Plaintiffs' attorney believes that based on the complexities of the issues and uncertainties of the ultimate outcome of this litigation, the benefits to be obtained by the Class as a consequence of the Stipulation and based upon the delays that would result from further litigation, the settlement is fair, reasonable, adequate, and in the best interest of the Class. SUMMARY OF SETTLEMENT STIPULATION The terms of the Stipulation settling this class action are set forth in detail in the Stipulation filed with the District Court. The principal terms and conditions of the settlement are summarized below. This summary should be read in conjunction with, and it is qualified in its entirety by reference to the text of the Stipulation. The Stipulation provides for the following improvements to the Resort in compliance with the ADA: ( I ) A new front entrance, facilitating access to the reception/lobby/restaurant areas for persons using wheelchairs; 3 (ii) A system of ramps and lifts providing access to all areas of the Resort, including the pool, Spa and beach (to waters end); (iii) Disabled parking complementing already available valet parking, where necessary, to meet equipment needs of disabled timeshare owners, guests or visitors; (iv) The alteration or addition of lobby level handicap accessible restrooms and the addition of a unisex disabled accessible restroom on the lower lever; (v) The addition of universal sign language in the restrooms, elevators and lifts and on the outside of each door; provision of audio cassettes and listening devices with respect to Restaurant, Spa and Resort services; (vi) The addition of cabanas in the Spa for purposes of providing spa and beauty treatments for those who cannot access the Spa facilities; (vii) The purchase and maintenance of at least one telecommunications device for the deaf; (viii) The construction of two new rooms providing standard accommodations for two people and capable of sleeping four people all fully compliant with the accessibility requirement of the ADA. The foregoing improvements are subject to governmental approvals, and are to be constructed over several years, so as not to unduly interfere with Resort operations and to meet available budgetary limits and projections. 4 Class Counsel intends to apply to the Court for an award of attorneys' fees to be paid by Gurney's, subject to Court approval and based upon an hourly rate -of $250.00 per hour. If the settlement is approved by the Court, a judgment dismissing with prejudice this litigation, and all claims and causes of action which could have been asserted against the defendant and other signatories to the Stipulation will be issued. If the settlement is approved, all members of the Class will be permanently barred and enjoined from instituting or prosecuting, against the defendant and other signatories to the Stipulation, any and all actions which they had or have arising out of or relating to the facts set forth in the Complaint. All Class members, irrespective of whether they appear in this action, will be bound by the terms of the Stipulation and any order of the Court dismissing this action. No member of the Class may "opt-out" of the Class. Each member of the Class or representative of a Class member who elects to oppose this settlement, or the application by Class Counsel for an award of the attorneys' fees and expenses, may appear personally or by counsel, at his/her own expense, at the Hearing. If you desire to object, you must state the basis of your position in writing, together with any supporting documentation, in advance of the Hearing, and mail it no later than February 15, 2005 prior to the Hearing date to: (i) Martin J. Coleman, Esq., 48 South Service Road, Suite 100, Melville, New York 11747; (ii) Pryor & Mandelup, LLP, Attention Randolph E. White, Esq., 675 Old Country Road, Westbury, New York 11590; and (iii) Clerk of the United States District Court for the Eastern District of New York at 100 Federal Plaza, Central Islip, New York 11722. No Class member or representative of a Class member shall be heard or be entitled to object to the approval of the terms of the proposed settlement, the allocation of funds, or the application by Class Counsel for an award of attorneys' fees and expenses unless that person timely files with the Court and timely serves upon Martin Coleman, Pryor & Mandelup, LLP and the Clerk of the Court their written objections and supporting papers. EXAMINATION OF PAPERS AND INQUIRY This Notice is only a summary of the litigation and the terms of the proposed settlement and does not purport to be comprehensive. For a more detailed statement of the issues involved in this Action and the terms of the proposed settlement you may refer to pleadings, the Stipulation of Settlement, and other papers filed in this action, which may be inspected at the office of the Clerk of the United States District Court for the Eastern District of New York, 100 Federal Plaza, Central Islip, New York 11722 during regular business hours of each business day. Any questions that any person to whom Notice is addressed may have with respect to the terms of the Settlement may be directed in writing to: Martin J. Coleman, Esq., 48 South Service Road, Suite 100, Melville, New York 11747, (631) 465-2101, and should not be raised with or directed to the Court. Dated: Central Islip, New York October 21, 2004 BY ORDER OF THE COURT /s/ E. Thomas Boyle _______________________ United States District Court Eastern District of New York 7