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Federal Court Final Settlement Agreement 1

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Federal Court Final Settlement Agreement 1 1 Court File No.: T-370-17 FEDERAL COURT Proposed Class Proceeding TODD EDWARD ROSS, MARTINE ROY and ALIDA SATALIC Plaintiffs - and - HER MAJESTY THE QUEEN Defendant FINAL SETTLEMENT AGREEMENT WHEREAS: A. Canada took action against members of the Canadian Armed Forces (the "CAF"), members of the Royal Canadian Mounted Police (the "RCMP") and employees of the Federal Public Service (the “FPS”) as defined in this Final Settlement Agreement (“FSA”), pursuant to various written policies commencing in or around 1956 in the military and in or around 1955 in the public service, which actions included identifying, investigating, sanctioning, and in some cases, discharging lesbian, gay, bisexual and transgender members of the CAF or the RCMP from the military or police service, or terminating the employment of lesbian, gay, bisexual and transgender employees of the FPS, on the grounds that they were unsuitable for service or employment because of their sexual orientation, gender identity or gender expression (the “LGBT Purge”); B. In 2016, class proceedings were commenced against Canada in the Ontario Superior Court of Justice, the Quebec Superior Court and the Federal Court of Canada in connection with the LGBT Purge, and those proceedings have been stayed on consent or held in abeyance while this consolidated proposed class action (the “Omnibus Class Action”) has been pursued on behalf of all three of the representative plaintiffs in the preceding actions; C. The plaintiffs, Todd Edward Ross, Martine Roy and Alida Satalic (the “Plaintiffs”) commenced the Omnibus Class Action in the Federal Court (Court File No. T-370-17) on March 13, 2017 by the Statement of Claim attached as Schedule “A”. The Plaintiffs, all former members of the CAF, claim on their own behalf and on behalf of class members that they suffered harm as a result of officially sanctioned policies of the CAF, RCMP and Page 1 of 41 2 the core departments and agencies of the FPS, that targeted members and employees of those organizations who identify as lesbian, gay, bisexual or transgender; D. The Plaintiffs and the Defendant (together, the “Parties”) recognize and acknowledge that the historical policies and practices described below had harmful effects on the class members and that they are not consistent with the values and principles that are now embodied in the Canadian and Quebec Charters of Rights and Freedoms and the Canadian Human Rights Act. The Parties wish to enter into a settlement to: i. provide recognition of the harm suffered by, and a meaningful personal apology to, Class Members who faced threat of sanction or were more directly affected by the Defendant’s policies while serving in the CAF, RCMP or while employed in the FPS; ii. provide compensation to those who suffered direct negative effects of the application of the officially sanctioned policies; and to iii. provide funding for individual and collective Reconciliation and Memorialization Measures that will record and memorialize these historic events in order to educate and prevent future discrimination, which it is hoped will lead to reconciliation with the LGBTQ2 community; E. The Parties, subject to the Approval Order and the expiration of the Opt Out Period without the Opt Out Threshold being met, have agreed to settle the Class Actions upon the terms contained in this FSA, and the Defendant will consent to certification of the Omnibus Class Action conditional on approval of this FSA; F. The Right Honourable Justin Trudeau, Prime Minister of Canada, delivered a formal apology to all members of the LGBTQ2 community in Parliament on November 28, 2017, attached hereto as Schedule “B”; and G. The underlying principle and purpose of this FSA is to provide compensation for the negative effects of the official policies that led to the LGBT Purge and to resolve all of the Class Actions including the Omnibus Class Action; NOW THEREFORE, in consideration of the mutual agreements, covenants and undertakings set out in this agreement, the Parties agree with each other as follows: Page 2 of 41 3 SECTION ONE INTERPRETATION 1.01 Definitions In this FSA, the following terms will have the following meanings: “Additional Reconciliation and Memorialization Measures Payment” means residue from the Designated Amount after the Compensation Amounts are paid, to a maximum of $10 million, distributed from the Designated Amount to the Reconciliation and Memorialization Measures Fund; “Additional Payment” means sums paid above and beyond the Initial Payment to Eligible Class Members once they have been deemed eligible for compensation pursuant to Levels 1, 2, 3 or 4 of the Compensation Grid as set out below in Section 7.05 and Schedule “P”; “Administrator” means the entity appointed by the Court to carry out the duties assigned in Section 8.03; “Agreement in Principle” or “AIP” means the agreement between the Parties which is dated 24 November 2017 and attached hereto as Schedule “C”; “Approval Date” means the date the Court issues its Approval Order; “Approval Order” means the judgment of the Federal Court a draft of which is attached hereto as Schedule “R” certifying the Omnibus Class Action as a class proceeding and approving this FSA as fair, reasonable and in the best interests of the Class Members for the purposes of settlement of the Class Actions; “Assessor” means the person or persons appointed pursuant to this FSA to assess the entitlement of Class Members to compensation at Level 4 in the Compensation Grid as set out below in Section 7.05 and Schedule “P”; Page 3 of 41 4 “Augmented Compensation Amount” means the residue from the Designated Amount after the Compensation Amounts and the Additional Reconciliation and Memorialization Measures Payment are made, which will be distributed on a pro rata basis to Eligible Class Members to a maximum total payment to each Eligible Class Member as set out in Section 7.09; “Business Day” means a day other than a Saturday or a Sunday or a day observed as a holiday under the laws of the Province or Territory in which the person who needs to take action pursuant to this FSA is situated, or a holiday under the federal laws of Canada applicable in the said Province or Territory; “Canada” or “Government of Canada” means Her Majesty the Queen in Right of Canada, the Attorney General of Canada, Her and their current and former respective legal representatives, employees, agents, servants, predecessors, successors, executors, administrators, heirs and assigns; “Class Actions” means: (a) Todd Edward Ross, Martine Roy and Alida Satalic v. Attorney General of Canada, Federal Court File No. T-370-17; (b) Todd Edward Ross v. Attorney General of Canada, Ontario Superior Court of Justice File No. CV-16-5653275; (c) Martine Roy v. Attorney General of Canada, Quebec Superior Court File No. 500-06- 000819-165; and (d) Alida Satalic v. Attorney General of Canada, Federal Court File No. T-2110-16; “Class Counsel” means counsel for the class as listed under Schedule “Q”, attached; “Class Members” means: All current or former members of the CAF, current or former members of the RCMP, and current or former Employees of the FPS, who were alive as of October 31, 2016 and who faced threat of sanction, were investigated, were sanctioned, or who were discharged or released from the CAF or RCMP or terminated from the FPS, or who Page 4 of 41 5 resigned from the FPS, in connection with the LGBT Purge, by reason of their sexual orientation, gender identity, or gender expression between December 1, 1955 and June 20, 1996, who have not opted out and who are not deemed to have opted out of the Omnibus Class Action on or before the expiry of the Opt Out Period. “Claims Period” means the period from the Implementation Date to the Individual Application Deadline; “Class Period” means the period from December 1, 1955 to June 20, 1996; “Compensation Amounts” has the meaning given in Section 7.05 of this FSA; "Compensation Grid" is the schedule attached as Annex “B” to the AIP and now marked as Schedule “P” of this FSA; “Court” means the Federal Court of Canada; “Deemed Class Member” means an individual who falls into the definition provided in Sections 4.03 and 4.04; “Designated Amount” means fifty million dollars ($50,000,000.00) to be paid by Canada to individually compensate Eligible Class Members; “Determination Date” means the day the Administrator determines the number of Eligible Class Members in accordance with Section 7.03(b); “Eligible Class Member” means a Class Member who was alive on October 31, 2016, and whose application for an Individual Payment is approved in accordance with the provisions of this FSA; “Employee of the FPS” means a determinate/term or indeterminate employee appointed to the public service under the Public Service Employment Act or other legislation, whether full time or part time, or an employee under the Public Service Staff Relations Act, and includes persons employed in a managerial or confidential capacity and employees of the Canadian Page 5 of 41 6 Security Intelligence Service, but does not include students, casual employees, ministerial staff, staff locally engaged outside of Canada or persons appointed by the Governor in Council; “Enhanced Amount” means the additional funds required to pay the Compensation Amounts to each Eligible Class Member if the Designated Amount is insufficient to pay Compensation Amounts to each Eligible Class Member, up to an additional sixty million dollars ($60,000,000.00); “Estate Executor” means the estate executor, administrator or
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