IF YOU LEASED A RESIDENCE IN MINNEAPOLIS, MN AT ANY TIME FROM NOVEMBER 13, 2012, TO TODAY, YOU MAY BE A MEMBER OF A CERTIFIED CLASS.

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1 LEGAL NOTICE BY ORDER OF THE STATE OF MINNESOTA DISTRICT COURT FOR HENNEPIN COUNTY IF YOU LEASED A RESIDENCE IN MINNEAPOLIS, MN AT ANY TIME FROM NOVEMBER 13, 2012, TO TODAY, YOU MAY BE A MEMBER OF A CERTIFIED CLASS. You can see a complete list of the affected residential properties (located in zip codes 55403, 55404, 55405, 55406, 55407, 55408, 55409, and 55414) in Exhibit A to this Notice. A court authorized this Notice. This is not a solicitation from a lawyer. You are not being sued. A class action lawsuit is pending in the State of Minnesota District Court for Hennepin County, Minnesota (the Court ) against the Defendants named below, who are alleged to be the owners and/or operators of the apartment buildings identified in Exhibit A (the Subject Properties ). The lawsuit alleges that the Defendants violated Minnesota state law by renting apartments without a proper license and by systematically and continuously failing to maintain the Subject Properties as required by health and safety laws. The Defendants deny any wrongdoing. The Defendants named in the class action lawsuit are Spiros Zorbalas; Stephen Frenz; Equity Residential Holdings, LLC; National Housing Fund, LLC; The Apartment Shop, LLC; ERT, LLC; Quarters for Creativity, LTD.; Emerald Square Properties, Inc.; Hennepin Quarters, Inc.; Powderhorn Quarters, Inc.; Hiawatha Quarters, Inc.; 25 & 3146 Properties, Inc.; Lahaha Holdings, Inc.; Arts Avenue Properties, Inc.; SS Quarters, Inc.; Berkeley Holdings, Inc.; 1801 Properties, Inc.; SZ112, Inc.; S1322, Inc.; R110, Inc.; G121, Inc.; Alpha-Omega Companies, Inc.; JAS Apartments, Inc.; Jennifer Frenz; Mary Brandt; and 2020 Vision Investments, LLC. The Court has decided that this lawsuit should proceed as a class action on behalf of Class, or group of people, that could include you. The Class includes: (1) Current Lessees. All persons who currently hold residential leases with Defendants for rental units located in any of the Subject Properties; and (2) Past Lessees. All persons who previously held residential leases with Defendants at any point after November 13, 2012, for rental units located in any of the Subject Properties. Your legal rights are affected whether you act or don t act. Read this Notice carefully. En el sitio web, hay una copia completa de esta notificación en español. Bogga internetka, waxaad ka heli nuqul dhamaystiran ee Ogaysiiskan oo Af Soomali ah.

2 YOUR LEGAL RIGHTS AND OPTIONS IN THIS LAWSUIT OPTION RESULT Stay in the lawsuit. Await the outcome. Share in possible benefits. Give up certain rights. DO NOTHING By doing nothing, you are choosing to stay in the Class. You will be permitted to share in any recovery that may result from this Class Action, but you will give up your rights to sue the Defendants on your own for the legal claims in this case. In addition, you will be bound by past and any future court rulings on the claims against the Defendants. Get out of this lawsuit. Get no benefits. Keep your rights. EXCLUDE YOURSELF OR OPT OUT OF THE CLASS ACTION If you ask to be excluded from the lawsuit, also known as opting out, you will not be entitled to any recovery that may result from this Class Action, but you will not be bound by any past or future ruling against the Defendants. You will be free to pursue or continue your own claims against the Defendants on your own or as part of a different lawsuit. These rights and options and the deadlines to exercise them are explained in this Notice. 2

3 Table of Contents Page 1. Why did I get this Notice? What is this class action lawsuit about? What is a class action and who is involved? What has happened in the lawsuit? What is the current status of the lawsuit? What are the Class Representatives asking for? Is there any money available now? How do I know if I am a Class Member Are there exceptions to being included in the Class? What if I am not sure I am included? What are my options as a Class Member? What happens if I choose to stay in the Class? How do I stay in the Class? What happens if I opt out of the Class? How do I opt out of the Class? What happens if I do not do anything? Do I have a lawyer in this case? How will the lawyers and Class Representatives be paid? Should I get my own lawyer? How do I get more information?

4 BASIC INFORMATION 1. Why did I get this Notice? Records indicate that you may currently hold or may have previously held a residential lease with the Defendants in one of the Subject Properties between November 13, 2012, and today. The Court authorized this Notice because the Court has allowed, or certified, a class action lawsuit that may affect you. You have the right to know about that class action lawsuit and about your legal rights and options that you may exercise. Because your rights will be affected by this class action lawsuit, it is extremely important that you read this Notice carefully. 2. What is this class action lawsuit about? The Court in charge of the case is the Minnesota State Court for Hennepin County, Minnesota. The case is a class action known as Edain Altamirano Flores, et al. v. Spiros Zorbalas, et al., Court File No. 27-CV Judge Mary R. Vasaly is overseeing this class action. The lawsuit is about whether Defendants violated Minnesota state law in the manner in which they rented and maintained apartments at the Subject Properties. Specifically, the Plaintiffs allege that the Defendants engaged in an illegal rental business, because they rented apartments without a proper license to do so from the City of Minneapolis. The Plaintiffs also allege that the Defendants engaged in a deceptive and systematic failure to maintain the Subject Properties in compliance with health and safety laws by maintaining control over centralized maintenance operations that fail to comply with applicable laws. The Defendants deny any wrongdoing. 3. What is a class action and who is involved? A class action is a lawsuit in which the claims and rights of many people are decided in a single court proceeding. One court resolves the issues for all Class Members, except for those who choose to exclude themselves. In a class action, representative Plaintiffs, also known as Class Representatives, assert claims on behalf of the entire class. In this case, the Class Representatives are Edain Altamirano Flores, Esperanza Herrera, Lori Nicol, Olutundun Arike Ogundipe, Jason Beck, Patricia Goggin, Norma Juarez, and Bruno Gorostieta. The individuals and companies that the Plaintiffs sued are called Defendants. The Defendants in this case are Spiros Zorbalas; Stephen Frenz; Equity Residential Holdings, LLC; National 4

5 Housing Fund, LLC; The Apartment Shop, LLC; ERT, LLC; Quarters for Creativity, LTD.; Emerald Square Properties, Inc.; Hennepin Quarters, Inc.; Powderhorn Quarters, Inc.; Hiawatha Quarters, Inc.; 25 & 3146 Properties, Inc.; Lahaha Holdings, Inc.; Arts Avenue Properties, Inc.; SS Quarters, Inc.; Berkeley Holdings, Inc.; 1801 Properties, Inc.; SZ112, Inc.; S1322, Inc.; R110, Inc.; G121, Inc.; Alpha-Omega Companies, Inc.; JAS Apartments, Inc.; Jennifer Frenz; Mary Brandt; and 2020 Vision Investments, LLC. They are the individuals and/or companies that Plaintiffs allege owned and operated the Subject Properties. 4. What has happened in the lawsuit? On September 23, 2016, Class Representatives Edain Altamirano Flores, Esperanza Herrera, Lori Nicol, and Olutundun Arike Ogundipe filed, on behalf of a putative class, a complaint against certain Defendants alleging that those Defendants had violated the Minnesota Prevention of Consumer Fraud Act and the Minnesota Deceptive Trade Practices Act, that Defendants had breached statutory landlord covenants found in Minnesota Statutes Section 504B.161, that Defendants had engaged in false advertising in in violation of Minnesota Statutes Section 325F.67, and that Defendants had engaged in a civil conspiracy in violation of Minnesota Statutes Section , subdivision 2. The Class Representatives filed an Amended Complaint on January 1, 2017, which added Class Representatives Jason Beck, Patricia Goggin, Norma Juarez, and Bruno Gorostieta and Defendant 2020 Vision Investments, LLC to the lawsuit. On August 11, 2017, the Court certified a class of individuals who held rental leases in any of the Subject Properties, including: (1) Current Lessees. All persons who currently hold residential leases with Defendants for rental units located in any of the Subject Properties; and (2) Past Lessees. All persons who previously held residential leases with Defendants at any point dating back to November 13, 2012 for rental units located in any of the Subject Properties. 5. What is the current status of the lawsuit? The Court has certified the class of individuals described above, and directed that this Notice be sent out. The Court originally scheduled trial to begin sometime between September 25, 2017 and October 8, However, the parties and court anticipate that the trial date will be moved. 6. What are the Class Representatives asking for? The Class Representatives are asking the Court to order that the Defendants pay for damages that they claim the class incurred as a result of Defendants actions. The Class Representatives are also asking the Court to issue injunctive relief enjoining, or stopping, Defendants from taking further 5

6 actions to displace or harm class members and to appoint a receiver, or administrator, to manage the Subject Properties. The Class Representatives are also asking the Court to order the Defendants to pay their costs and attorneys fees of this lawsuit. 7. Is there any money available now? No money or benefits are available now because the Court has not yet decided whether the Defendants did anything wrong, and the two sides have not settled the case. There is no guarantee that money or benefits ever will be obtained. If they are, you will receive a notice describing how to receive a share. WHO IS A CLASS MEMBER 8. How do I know if I am a Class Member? You are a member of the Class if you currently hold or previously held a residential lease at any of the Subject Properties between November 13, 2012, and today. You remain a member of the Class regardless of whether you continue to hold that lease. 9. Are there exceptions to being included in the Class? Yes. The following are not members of the Class: Defendants in the lawsuit, or a parent, subsidiary, or affiliate of a Defendant, or government entities; The presiding Judge(s) and members of their immediate family or judicial staff; and All persons who properly opt out of the Class. 10. What if I am not sure I am included? If you are still not sure whether you are included in the Class, you can get free help by calling or writing to the lawyers in this case at the phone numbers or addresses listed in response to question 17. 6

7 YOUR OPTIONS AS A CLASS MEMBER 11. What are my options as a Class Member? You must decide whether to stay in the Class or opt out of it. 12. What happens if I choose to stay in the Class? If you stay in the Class, you will be permitted to share in a recovery, if any, that may occur in this Class Action, but you give up any rights to sue the Defendants separately about the same claims in this lawsuit. You also will be legally bound by all of the Orders the Court issues and Judgments the Court makes in this Class Action, even if there is no recovery. 13. How do I stay in the Class? You do not have to do anything at this time to stay in the Class. 14. What happens if I opt out of the Class? If you opt out of the Class, you will give up the right to participate in any recovery that may occur. But you will keep any rights that you may currently have to sue the Defendants regarding the legal claims at issue in this lawsuit. You also will not be bound by the Orders the Court issues and Judgments the Court makes in this Class Action. 15. How do I opt out of the Class? If you do not want to remain a member of the Class, you must send either the completed Exclusion Form attached as Exhibit B to this Notice, or another written Request to Opt Out to the Notice Administrator, so it is received no later than December 22, You must either use the enclosed Exclusion Form or provide a written request that includes: Your name, address, and telephone number; A statement confirming that you want to opt out of the Class; and The case name and number Edain Altamirano Flores, et al. v. Spiros Zorbalas, et al., Court File No. 27-CV

8 Your Request to Opt Out must be sent to the following address: Minneapolis Apartment Litigation Notice Administrator P.O. Box Richmond, VA EXCLUSION LETTERS THAT ARE NOT RECEIVED ON OR BEFORE DECEMBER 22, 2017 WILL NOT BE HONORED. 16. What happens if I do not do anything? By doing nothing, you are choosing to stay in the Class. You don t have to do anything now if you want to stay in the Class. If you stay in the Class and the Class Representatives obtain money or benefits, either as a result of trial or a settlement, you will be notified about how to apply for a share (or how to ask to be excluded from any settlement). Regardless of whether the Plaintiffs win or lose at trial, you will not be able to sue, or continue to sue, the Defendants as part of any other lawsuit about the same legal claims that are the subject of this lawsuit. You will also be legally bound by all of the Orders the Court issues and Judgments the Court makes in this Class Action. THE LAWYERS REPRESENTING YOU 17. Do I have a lawyer in this case? Yes. The Court has appointed lawyers to represent you and other Class Members. These lawyers are called Class Counsel. The following lawyers are representing the Class: Michael F. Cockson FAEGRE BAKER DANIELS LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN Telephone: (toll-free) or Additional attorneys at Faegre Baker Daniels LLP who are Class Counsel are James W. Poradek, Katherine S. Razavi, Adam M. Nodler, Lauren Steinhaueser, Patrick Bottini, Nathan Brennaman, and Isaac B. Hall. You will not be charged for these lawyers services. If you want to be represented by your own lawyer, you may hire one at your own expense. 8

9 18. How will the lawyers and Class Representatives be paid? If recovery is obtained for the Class, Class Counsel will request from the Court an award for attorneys fees and expenses. Class Counsel may also ask the Court to approve reasonable incentive awards for the Class Representatives. If approved, these fees and expenses and incentive awards will either be paid from the recovery obtained for the Class or separately by the Defendants. 19. Should I get my own lawyer? You do not need to hire your own lawyer because Class Counsel is working for you. However, you are welcome to hire your own lawyer at your own expense. If you hire a lawyer to speak for you or to appear in Court, your lawyer must file a Notice of Appearance. GETTING MORE INFORMATION 20. How do I get more information? This Notice contains a summary of relevant court papers. Complete copies of public pleadings, Court rulings, and other filing are available from the Hennepin County District Court Records Center. The address is Fourth District Court Records Center, 300 South 6 th Street, #B-100, Minneapolis, MN Requests for copies of records may be made in person at the Records Center or by submitting a copy request form. The form is available at the Records Center s website at Hennepin.aspx. Additional information is also available by writing to the Notice Administrator at P.O. Box 25848, Richmond, VA or by visiting the website at On the website, there is a complete copy of this Notice in Spanish. On the website, there is a complete copy of this Notice in Somali. Please do not contact the Court or Judge Vasaly. They cannot answer any questions or discuss the Action. Dated: November 7, BY ORDER OF THE STATE OF MINNESOTA DISTRICT COURT FOR HENNEPIN COUNTY, MINNESOTA 9

10 EXHIBIT A: SUBJECT PROPERTIES 1. 1 River Terrace Ct., Minneapolis, MN River Terrace Ct., Minneapolis, MN River Terrace Ct., Minneapolis, MN & 1318 Powderhorn Terrace, Minneapolis, MN nd Street W., Minneapolis, MN Lagoon Ave., Minneapolis, MN nd Avenue S., Minneapolis, MN rd Ave. S., Minneapolis, MN Stevens Ave., Minneapolis, MN Stevens Ave., Minneapolis, MN Stevens Ave., Minneapolis, MN nd Avenue S., Minneapolis, MN Bryant Ave. S., Minneapolis, MN Aldrich Ave. (aka 712 W. Franklin Ave.), Minneapolis, MN W. Franklin Ave., Minneapolis, MN River Terrace Ct., Minneapolis, MN th Street E., Minneapolis, MN E. River Terrace, Minneapolis, MN E. River Terrace, Minneapolis, MN E. River Terrace, Minneapolis, MN River Terrace Ct., Minneapolis, MN th Street E., Minneapolis, MN th Street E., Minneapolis, MN River Terrace Ct., Minneapolis, MN Lyndale Ave. S., Minneapolis, MN Girard Ave. S., Minneapolis, MN Nicollet Ave. (aka 6 E. 25th St.), Minneapolis, MN East 25th Street, Minneapolis, MN Emerson Ave. S., Minneapolis, MN Dupont Ave. S., Minneapolis, MN Dupont Ave. S., Minneapolis, MN Girard Ave. S., Minneapolis, MN Hennepin Ave. S., Minneapolis, MN Grand Ave., Minneapolis, MN th Avenue S., Minneapolis, MN th Avenue S., Minneapolis, MN th Avenue S., Minneapolis, MN Bloomington Ave. S., Minneapolis, MN nd Avenue S., Minneapolis, MN nd Ave. S., Minneapolis, MN Cedar Ave. S., Minneapolis, MN nd Ave. S., Minneapolis, MN Pleasant Ave. S., Minneapolis, MN

11 nd Avenue S., Minneapolis, MN Minnehaha Ave., Minneapolis, MN nd Ave. S., Minneapolis, MN Minnehaha Ave., Minneapolis, MN Oak Grove Street, Minneapolis, MN Minnehaha Ave., Minneapolis, MN st Ave. S., Minneapolis, MN Blaisdell Ave., Minneapolis, MN Nicollet Ave. S., Minneapolis, MN Nicollet Ave. S., Minneapolis, MN Nicollet Ave. S., Minneapolis, MN Emerson Ave. S., Minneapolis, MN Grand Ave. S., Minneapolis, MN Minnehaha Ave. S., Minneapolis, MN Cedar Ave. S., Minneapolis, MN East 16th St., Minneapolis, MN nd Street W. (aka 2201 Aldrich Ave. S.), Minneapolis, MN Franklin Ave. W., Minneapolis, MN Franklin Ave. W., Minneapolis, MN Nicollet Ave., Minneapolis, MN

12 STATE OF MINNESOTA HENNEPIN COUNTY DISTRICT COURT FOURTH JUDICIAL DISTRICT CASE TYPE: CIVIL OTHER Edain Altamirano Flores; Esperanza Herrera; Lori Nicol; and Olutundun Arike Ogundipe; Jason Beck; Patricia Goggin; Norma Juarez; Bruno Gorostieta; on behalf of themselves and all others similarly situated, Court File No. 27-CV Class Action Judge Mary R. Vasaly v. Plaintiffs, EXCLUSION REQUEST FORM Spiros Zorbalas; Stephen Frenz; Equity Residential Holdings, LLC; National Housing Fund, LLC; The Apartment Shop, LLC; ERT, LLC; Quarters for Creativity, LTD.; Emerald Square Properties, Inc.; Hennepin Quarters, Inc.; Powderhorn Quarters, Inc.; Hiawatha Quarters, Inc.; 25 & 3146 Properties, Inc.; Lahaha Holdings, Inc.; Arts Avenue Properties, Inc.; SS Quarters, Inc.; Berkeley Holdings, Inc.; 1801 Properties, Inc.; SZ112, Inc.; S1322, Inc.; R110, Inc.; G121, Inc.; Alpha-Omega Companies, Inc.; JAS Apartments, Inc.; Jennifer Frenz; Mary Brandt; and 2020 Vision Investments, LLC, Defendants. If you want to remain a member of the class in this lawsuit, you should not fill in this form and are not required to do anything at this time. This form is only used if you want to exclude yourself from this case. If you want to opt-out of the class, you must fill-in this Exclusion Request form and return it to the Notice Administrator at P.O. Box 25848, Richmond, VA by mail so that it is received no later than December 22, If you exclude yourself from the class: 12

13 (1) You will not share in any recovery that might be paid claimants as a result of any judgment or settlement of this lawsuit. (2) You will not be bound by any decision in this lawsuit. (3) You may pursue any claims you have against the defendant by filing your own lawsuit. If you have any questions regarding this case, please call class counsel at (toll-free) or , or write for information class counsel will send to you. Class counsel s address is Michael F. Cockson, Faegre Baker Daniels LLP, 2200 Wells Fargo Center, 90 South Seventh Street, Minneapolis, Minnesota DO NOT CALL THE CLERK OF COURT FOR INFORMATION. Complete the following only if you wish to be excluded from the class in this lawsuit: I hereby certify that I believe myself to be a member of one or more of the class Further, I want to exclude myself from this lawsuit. Please print legibly: First Name Last Name Middle Initial Address Phone City State Zip Code Signature of Class Member: Date: 13