July 12, 2002

Historic Celebration for Alexander First Nation in

Official signing of the settlement agreement for the 1905 Surrender Claim

Nearly $63 Million in Compensation

This agreement is supported by community members as illustrated below

Ratification vote by community members was held April 5, 2002.

2 polls, one off and one on reserve;

Eligible voters-884

Votes cast-737 (83% of eligible voters)

655-yes (88.8% of votes cast)

79-No (10.7% of votes cast)

For more information on land claims please visit

Turtle Island Native Network http://www.turtleisland.org Alex Newsletter 3/8/02 10:48 AM Page 1

19051905 SurrenderSurrender ClaimClaim NewsNews A Publication of the Alexander First Nation MARCH 2002

Message from Chief and Council

February 28, 2002 alternative courses of action. We simply do not know whether a court battle would provide a greater To All Members of the Alexander First Nation recovery. We do know that such a battle would be lengthy and bitter and the outcome cannot be Dear Members: guaranteed. Subject: Settlement of 1905 Surrender Land Claim Contents The formal process of obtaining the consent of Alexander Members has begun. A Settlement 1 Message from Chief and Council As many of you already know, the Alexander First Agreement has been drafted and initialed by our Negotiator, Rene Paul and Canada's Negotiators, Troy 2 Message from the Elders’ Nation has been in negotiations for many years to Senate settle the land claim relating to the loss of 9,518 acres Chalifoux and Frank Osendarp. All members of Alexander First Nation of at least 18 years old will be 2 Message from the Youth of land from the Alexander Reserve No.134 in 1905. Committee given the opportunity to vote on the proposed On the advice of our Negotiator and legal counsel, we, 3 History of the Claim Settlement Agreement, including giving their consent your Chief and Council are proud to recommend the to the surrender of the Claim Lands. 3 The Negotiators proposed settlement agreement for this long- 3 Highlights of Proposed outstanding claim. The settlement represents the It is important to stress that this settlement will not Agreement product of a great deal of hard work by many people. become final until you, the members of Alexander, 4 Studies on Loss of Use Our Elders, previous leadership, and many staff indicate that you agree with the settlement package in 4 Proposed Trust Agreement members provided invaluable advice, guidance and a Ratification Vote to be held on April 5, 2002. The and Per Capita Distribution wisdom in an effort that will now allow Alexander to information you have received with this letter also 5-7 Questions and Answers finally put this grievance behind us. includes the particulars of the Ratification Vote. Please 7 Information on Voting read it carefully and if you have any questions do not This proposed Settlement Agreement brings much- 8 The Question on the Ballot hesitate to contact our office or the Indian Affairs needed financial resources for the benefit of our representatives listed therein. 8 Contacts for Further members and Alexander as a whole. A total Information compensation package of $62,965,640.07 provides The Chief and Council and the Negotiator have been Alexander with a firmer foundation on which to build working with some of our members, some staff a secure and prosperous future for our children, members, our lawyers, accountants and investment grandchildren, great-grandchildren and for those advisers to design a Trust Agreement to create the children not yet born. You will no doubt agree. As was Alexander 1905 Surrender Claim Trust. It will create a explained to you, some of the money has been framework to guarantee the input of all of you who are targeted for specific items that are considered members on decisions to invest and spend the beneficial to the short and long-term financial compensation for the benefit of all of members of standing of Alexander and which will enable us to Alexander. provide expanded program and service delivery to you. We will be holding information meetings so that you As part of the proposed settlement of the 1905 can hear from the Chief and Council, the Negotiator Surrender Claim, we will and our legal counsel on all aspects of the settlement have to surrender (or re- proposal, as well as our accounting and investment surrender) the Claim advisers. The Electoral Officer who will supervise the Lands. This is only a Ratification Vote and Referendum will also be there to technical requirement of explain the voting procedures. You will also be able to Indian and Northern get legal advice from our lawyers privately, either in Affairs Canada and does person or by collect telephone call. The Council and not prevent us from the Negotiator will also be available for members to reacquiring that land as discuss the proposed settlement agreement and why we are recommending it. Alexander First Nation part of our Reserve. In the Alexander 1998 Treaty Land Government: (Left to Right Front Row) Councillor Martin Entitlement Settlement Agreement, we obtained the This proposed Settlement Agreement that has been Arcand, Chief Victoria Arcand, legal right to have that land returned to Alexander presented to you represents a major victory by the Councillor Sylvia Arcand, and Reserve No.134 once we have purchased it. The Alexander First Nation. We are pleased and proud to Councillor Don Kootenay; (Left to Right Back Row) Proposed Settlement Agreement preserves our rights to recommend it for your acceptance. re-establish our original Reserve at the same time as it Councillor Armand Arcand, Respectfully submitted by the Chief and Council of the Councillor Howard Augbelle, compensates us for the loss of use of that land for and Councillor Herb Arcand, Alexander First Nation: are encouraging the electorate nearly 100 years. The 1905 Surrender Claim does not of the First Nation to ensure in any way take away these rights. There is a clause in they vote on April 5, 2002. the proposed Settlement Agreement that makes it clear that any parts of the Claim Lands that are purchased on the open market through the Treaty Land Entitlement Settlement Agreement will be returned to the Alexander Reserve. The Proposed Settlement Agreement also makes it clear that bed and shores of Deadman's Lake will be returned to Alexander. The Chief and Council have decided that this settlement provides a compensation package that we can recommend, taking into account all of the Message from the Elders' Senate

February 28, 2002

Tansi:

Within the last month, you all have witnessed a great deal of activity centered around the Land Surrender Claim. And rightly so, because it is very exciting. Finally, we are witnessing a great moment that we didn't think was possible. As Elders, we do not believe in standing in the way of something that is viewed as being positive for our reserve. This Land Surrender Claim is certainly something that most of our community believes as being positive. It will provide us with a Elders of the Alexander First Nation: (Left to Right) Member Ron Arcand, Elder Narcisse Paul, certain degree of comfort to see some light in the Elder Arsene Arcand, Elder Mose Newborn, and Ed Arcand, Director of Economic Development discuss details of the Proposed Settlement Agreement. distance. We are not sure if you understand this, but we wish to bring to your attention what happens if we don't vote Yes in the upcoming vote for the Land Surrender Claim. We understand that if the vote is No on April 5, 2002, that will certainly mean continuing struggles for all of us!!! We are sure that you are aware that we are struggling right now because there is no money for building additional houses, fixing roads, or creating more employment. We are in a dilemma. We understand that if the vote turns out to be No on April 5, 2002, then Indian and Northern Affairs Canada could take this deal off the table and may not be willing to bring it back for a long, long time. We stand to lose a lot if this happens. That is why we have taken this opportunity to write down our thoughts. We encourage you all to consider our situation very carefully. As Elders, we will not benefit as greatly as the young generation. It is they, the young people of Alexander First Nation who will benefit. We owe it to them to try to make their lives better. We owe it to them to feel confident about planning for their future. We trust you will find it in your hearts to pray for guidance and make a decision that is right for you. Take time to think about this. Make the right choice for you, your children, your grandchildren, your great grandchildren and for the children not yet born. May the Great Spirit give us the strength we need during this difficult time to make the right choices for Alexander First Nation. May we live in harmony and peace no matter what the future holds in store for us. We ask for blessings of kindness and respect for each and every one of our band members today and for the future.

May the Great Spirit guide you well,

Elders' Senate

Message from the Youth Committee

February 28, 2002

To All Members of the Alexander First Nation:

On behalf of the Alexander Youth Committee, I would like to extend warm wishes and wish everyone the best in the future. The Land Surrender Claim that Alexander is currently involved in is proving to be a positive financial vehicle for all members. Let's not just think of it as 'money in our pockets', but reflect on the positive things that it can do for our community. There will now be funding for programs that have never been properly funded. The youth in our community will now have a fully funded program of their own, as well as a fully funded recreation program. This means positive things for our future. The youth have things to look forward to, such as scheduled programs and activities. Let's use this to extinguish the negative attitudes that have been bestowed on the youth. Let's use this as a positive framework in which we can all begin to properly train our future leaders. By giving them the opportunity to better themselves, we give them the opportunity to give us a better community. This is why it is important that the Land Surrender Claim go through, so that the future leaders and community members have a community to call home.

May the Great Spirit Guide Each of You in Your Journey,

Chairperson Alexander Youth Committee

2 History of the 1905 Surrender Claim Surrendered Lands The Alexander First Nation not attend the surrender Location became a party to meeting as required by the in 1877. Alexander’s Indian Act. The First Nation Reserve No. 134 was contended that the funeral surveyed shortly after and of Thomas Gladu would officially established in have prevented the required 1889. On December 29, number of voters from 1905 a surrender vote was attending the surrender taken and executed by meeting. Inspector Markle of the Holding a surrender vote on Department of Indian 1905 Lands Surrendered Forming the the day of a funeral was Affairs. The Surrender Basis of the Claim: On December 29, against the “rules of the 1905, 9,518 acres of Alexander Indian document bears the marks band” referred to in the Reserve No. 134 was allegedly surrendered of seven members, to the federal government. At the time the Location of the Alexander First Nation: Indian Act provisions on including Chief Alexander, reserve was surveyed in 1880 and Alexander First Nation became a signatory surrenders. confirmed in 1889 its size was 26,240 acres. to Treaty 6 in 1877. The community is who was not then located northwest of the town of , Although the government rejected the main allegation of the which is located about 35 kilometres recognized as Chief. claim in 1994 additional research and legal submissions were northwest of Edmonton. Alexander is now A day before the surrender, composed of 16,240 acres. made. As a result on February 3, 1998, Canada accepted the Thomas Gladu, an elder of entire claim for negotiation under the Specific Claims Policy. the First Nation passed away. Church records indicate that he was The Surrender Document relates to 9,518 acres of the Reserve–the buried the following day, the same day of the surrender. No area defined in the settlement agreement as the “Claim Lands.” interpreter signed the surrender affidavit. The document bears the marks of seven members, including In June 1990, the Alexander First Nation submitted a claim Chief Alexander, who was not then recognized as Chief. Since alleging that the 1905 surrender of the Reserve lands was invalid 1998, the negotiation team for Alexander and Canada have been because, among other reasons, a majority of eligible voters did negotiating a settlement to this long standing grievance.

The Negotiators Many different people were involved in the negotiation of this claim. Representatives of Alexander First Nation and Canada worked very hard to reach a settlement and bring this Agreement-in- Principle to the Alexander members for a vote. Chief and Council have overseen the negotiations since 1998. Alexander's team was lead by Rene Paul, Negotiator. Mr. Paul has been assisted by Bob Potts and Alan Pratt, Legal Counsel. To help with the development of the Trust Agreement, Alexander sought the assistance of Legal Counsel Chris Clapperton and Trina Kondro. Financial advice was provided by Kelly Rogers and Peter Ranson and Bob Brown advises Alexander with respect to investment and tax. Canada also had a team of people working on the claim. From 1998 to 2001, Canada's negotiation team was lead by Chris Fleck. After Mr. Fleck's departure, Troy Chalifoux and Frank Osendarp were Negotiator for Alexander First appointed negotiators for the to conclude the agreement. Mr. Chalifoux is Nation: Rene Paul has been involved in pursuing the 1905 Manager and Senior Negotiator of Claims, Indian and Northern Affairs Canada, Alberta Region. The Surrender Claim for many years. negotiators were assisted by Trevor Heney, Legal Counsel, Department of Justice Canada and Mr. Paul is a member of the Veronica Russell, Claims Analyst and Ratification Officer, Indian and Northern Affairs Canada, Alexander First Nation. Alberta Region. Highlights of Proposed Agreement Negotiations for the 1905 Surrender Claim began in 1998 and The global figure for financial compensation was negotiated and numerous people have worked long hours to reach the point Studies on the Loss of Use of the Claim Lands were conducted where a Proposed Settlement Agreement is being put before the and analyzed. Interest and cost of living adjustments were made members for a vote. to determine a present value. The value of the resources extracted The Chief and Council, the Alexander Negotiators and Elders was also considered in determining a value. Senate are recommending acceptance of this Proposed Settlement The majority of the compensation, with interest and other Agreement. income earned on it, will be invested and used for the long-term The major element of the Proposed Settlement Agreement is benefit of current and future members of the Alexander First financial compensation. Nation. (This is explained in the article on the Proposed Trust Agreement. Below is a financial chart that shows how payments of totaling $62,965,640 would be made by Canada over a period of five years. Some of the compensation will be used for a per capita distribution and to repay debts that have been incurred by Payment Schedule for Compensation Alexander.

$10,613,230.26 Pursuant to the Treaty Land Entitlement Agreement dated $15,482,685.00 March 24, 1998, Alexander First Nation has the right to purchase the Claim Lands and have them added to reserve. The Proposed Settlement Agreement stipulates that the bed and shores of Deadman's Lake will be returned to the Alexander First $10,972,131.36 Nation. The Proposed Settlement Agreement will not impact on the $11,689,934.78 Treaty Rights of the Alexander First Nation. There is a clause in $11,331,033.27 the Proposed Settlement Agreement that deals with this issue.

First Year Payment Second Year Payment This Proposed Settlement Agreement does not affect the programs or services provided by Canada. There is a clause in Third Year Payment Fourth Year Payment the Proposed Settlement Agreement that addresses this directly. Five Year Payment

3 Studies on Loss of Use In negotiating the specific claim Alexander and Canada’s negotiators needed to arrive at an understaning with respect to compensation. Part of that process was assessing the historical losses suffered by Alexander First Nation from the loss of 9,518 acres in 1905. Certain studies were required to analyze the economic returns that would have been achieved and returned to the First Nation if they had retained the land. A variety of experts were retained by Alexander for studies through 1998 and 1999. Subsequent updates were provided up to December 31, 2000. The objective of the studies was to determine the loss of use of the lands from the perspective of how those lands would have been utilized by Alexander during the period from 1905 to 2000 if they had remained available for the use of the First Nation. This involved an analysis of what resources were Community meetings on the 1905 Surrender Claim: Meetings were held at available for development and how these resources were the Alexander First Nation on December 19, 2001 and January 17, 2002 to inform developed. In addition the current appraised value of the Claim the membership on the details of the Proposed Settlement and Trust Agreements. Officials speaking at the meeting on January 17, 2002 included the Chief and Lands was also determined. The study consultants provided Council, Bob Potts, Chris Clapperton and Rene Paul. About 300 members estimates of these losses on a year-by-year basis which were then attended the meeting at the Community Centre in January. brought forward to a present value to arrive at a global amount, which is now the basis of the negotiated compensation. The Alexander Elders assisted the Study Consultants as one of the The following studies were completed to assess all the losses: principle sources of historical data in attempting to reconstruct • Land Appraisal; how the First Nation would have used the land. The consultants met with the Elders for several days in early December 1998. • Agricultural Loss of Use Study; Subsequent meetings were held at various stages of the study • Traditional Loss of Use Study; process to obtain their input prior to finalizing the reports. • Forestry Loss of Use Study; • Oil and Gas Leasing and Reservoir Loss of Use Studies; and If members desire they can view copies of the Loss of Use Studies • Trust Account Study. at the band office.

Proposed Trust Agreement and Per Capita Distribution The Alexander First Nation 1905 Surrender Claim Trust Agreement is Nation (subject to vote by electors) -Years 1- 5. the instrument that the Alexander First Nation proposes to use to • balance of compensation (approximately 60 percent) to be mange the compensation received from the Proposed Settlement. invested: The Trust was developed by the First Nation. It is the vehicle that • years 2- 30 - up to 50 percent of income (no capital) to be spent will ensure that future generations of Alexander First Nation on Alexander Programs and Services (to be voted upon by members benefit from the settlement of the claim. electors); and The Trust Agreement is created upon payment by Canada of the • years 30 and on - any or all of income and capital may be spent initial deposit of the compensation owing to Alexander First Nation on Alexander Programs and Services (to be voted upon by into the Trust Account. Initially, Chief and Council are the trustees electors). of the Trust. The Initial Trustees will have very limited powers. Alexander Programs and Services include the following: They will: • capital improvements and infrastructure; • sign the Trust Agreement; • economic development; • open a trust account to deposit the compensation; • recreation; • accept, hold and invest the trust property; and • cultural and traditional programs; • pay out the initial $5,000 per capita distribution. • discretionary annual per capita distribution of up to 20 percent of The Initial Trustees are not paid a salary, but are entitled to an income; and honorarium for meetings, plus reasonable out-of-pocket expenses. • other suggestions proposed by members. Within two months of the creation of the Trust, a trust company The funding of Alexander Programs and Services by the Trust is not must be selected by Chief and Council to replace the Initial Trustees. to jeopardize the amount or availability of financial support from The trust company will serve as an administrative trustee only. Canada or Alberta. Alexander Programs and Services must be administered by the First Nation. The electorate will ultimately The beneficiaries of the Trust are the present and future members of decide on where the money should be spent. the Alexander First Nation, regardless of residency. The per capita distribution for members under the age of 18 will be The duties of the Trust Company as administrative trustee are to: held in Trust until they attain the age of 21. Income earned • monitor the investment manager to ensure compliance with the annually will accrue to the benefit of members. The annual income Investment Policy Statement; is calculated at a rate of prime plus 1 percent, compounded annually. • maintain financial reporting and accounting; The Minors' Trust will be administered by the trustee. A member • oversee tax reporting and general reporting to Alexander First has a limited right to receive income and/or capital in cases of Nation; emergency. • pay earned income to Alexander First Nation for Alexander Programs and Services (as determined by the electors by vote); and First Year Payment Distribution • administer the Minors' Trust. First Year Payment ...... $15,482,685 The fees charged by the Trust Company as an administrative trustee Repayment of Negotiation loan to Canada are to be negotiated. and Alexander Legal Counsel costs...... $2,876,625 The assets of the Trust will be used for the following purposes: First Year Payment ...... $15,482,685 • pay authorized expenses; Debt Reduction ...... $4,993,286 • invest in authorized investments; Deposit to Alexander Trust ...... $10,489,399 • initial capital spending (April 1, 2002- March 31, 2007- Per Capita Distribution approximately $7,500,000 will be spent approximately 40 percent of total compensation to be spent): in the per capita distribution of $5,000 per member. • $5,000 per capita distribution to members -Year 1; • negotiation and settlement costs -Year 1; and Prescribed Programs and Services for • capital expenditures for the immediate needs of Alexander First the year 2002 - 2003 ...... $2,989,399

4 Questions and Answers These questions and answers, about the Proposed Settlement services, disaster relief and other matters that the First Nation Agreement and the Alexander Trust Agreement, have been regards as Treaty Rights. Alexander has specifically retained the prepared by the legal counsel for Alexander First Nation right to bring forward such a claim. ("Alexander") to address the questions that many of Alexander's members have brought up in past discussions. Q5. Will this settlement affect programs or services from Canada? Many members will have additional questions, and they will have the opportunity to ask them during the information A5. There is a clause in the Proposed Settlement Agreement that sessions and at other times prior to the ratification vote on makes it clear that eligibility for federal programs and services, April 5, 2002. and the level of those programs and services, will not be affected by the Agreement. Q1. What is the 1905 Surrender Land Claim about? Q6. What is required of Alexander if the settlement is A1. The settlement of the claim resolves the loss of approved? approximately 9,518 acres of Alexander No. 134 on December 29, 1905. On that day, a surrender allegedly took A6. In exchange for the compensation, Alexander is being asked place. The position of Alexander is that the alleged surrender was to provide a present-day surrender under the provision of the not lawful, in that an inadequate number of members voted for Indian Act of 9,166 acres of the Claim Lands that were allegedly it. In addition, the surrender vote should not have taken place surrendered in 1905. on that day since a funeral was also taking place. The area that was allegedly surrendered in 1905 is defined as the Claim Lands and has a total area of 9,518 acres. The difference Q2. When was the claim presented to the federal between the 9,166 acres to be surrendered as part of the government? settlement and the original area of 9,518 is explained by the fact A2. The claim was presented to the federal government as a that some of the Claim Lands (fractional sections and road specific claim in 1990. The claim was accepted for negotiations allowances) have already been restored to the Reserve and are not by the Government of Canada in 1994, but on a very limited covered by the present-day surrender. basis relating to inadequacies in the implementation of the terms The Proposed Settlement Agreement also includes a full and final of the surrender. Canada initially refused to acknowledge that release by Alexander that states that the claim relating to the loss the surrender was invalid or illegal. of the Claim Lands can never be made again against the Alexander did not agree with the limitations on the initial Government of Canada. acceptance of the claim and started a lawsuit in the Federal Alexander has to provide indemnification to the federal Court, Trial Division, on December 9, 1994. That lawsuit government if Canada is forced to pay more money to any remained inactive with the agreement of both parties while the members of Alexander as the result of the same claim in the possibility of settlement was pursued. future. In 1994, Alexander also asked the Indian Claims Commission to hold an inquiry into the claim. In 1998, as the result of further Q7. What about the plan to purchase back the Claim discussions facilitated by the Indian Claims Commission and Lands? additional research conducted jointly by Canada and Alexander, A7. The Treaty Land Entitlement Agreement dated March 24, Canada accepted the claim on the basis that had originally been 1998, set out Alexander's right to purchase the Claim Area and proposed by Alexander, and negotiations began. have it restored to the Reserve. In addition, in the 1998 Treaty Land Entitlement Agreement Canada agreed to confirm the bed Q3. What will Alexander receive if the settlement is and shores of Deadman's Lake as part of the Reserve. approved? The 1905 Surrender Claim and the Surrender of the Claim Lands A3. The basic elements of benefits to Alexander in the proposed do not in any way take away these rights. There is a clause in the settlement are: Proposed Settlement Agreement that makes it clear that any parts • payment by Canada of an amount totaling $62,965,640.07 over of the Claim Lands that are purchased on the open market will a five year period, less the repayment of $1,126,625 which was be returned to the Alexander Reserve. borrowed by Alexander for a portion of Alexander's legal and negotiation costs; The Proposed Settlement Agreement also makes it clear that the • in the first year, a total of $15, 482,685 will be paid to bed and shores of Deadman's Lake will be returned to the Alexander, while a total of $2,876,625 will be paid to the Reserve. Government of Canada to repay the negotiation loan, and to Q8. What is the ratification process about? pay the legal counsel for Alexander for legal costs; • The first year payment of $15,482,685 will be paid out as A8. It is important to stress that there will be no settlement follows: unless the adult members of Alexander agree. At least 50 percent • $4,993,286 will be paid into Alexander's bank account to plus one of the eligible voters must vote. This means all reduce debt; members 18 years or over, whether they live on or off Reserve. • the remaining $10,489,399 will be deposited into the At least half of those voters who actually vote, plus one, have to Alexander Trust (as discussed more fully later) to be used as vote in favour of the Proposed Settlement Agreement and Trust follows: Agreement package to have it ratified. • approximately $7,500,000 will be spent in the per capita Until these approvals are received, the present proposal to settle distribution of $5,000 to each member; and the balance of the claim is only a recommendation by the Negotiator, Chief and approximately $2,989,399 will be available for prescribed Council, along with the legal counsel to Alexander. programs and services (to be discussed more fully later) for the year 2002-2003. Q9. How was the compensation determined? • Future payments will be paid in to the Alexander Trust as A9. The compensation represents a global amount of money follows: for the financial losses to Alexander resulting from the loss of the - May 15, 2003: $11,689,934.78; 9,518 acres of Claim Lands in 1905. - May 15, 2004: $11,331,033.27; - May 15, 2005: $10,972,131.76; and It represents the appraised value of the Claim Lands. In addition, - May 15, 2006: $10,613,230.26. studies were conducted by experts in various fields to examine the loss of use of the land from the perspectives of traditional Q4. Will this settlement affect our Treaty Rights? harvesting, forestry, oil and gas surface and subsurface rights and A4. There is a precise clause in the Proposed Settlement agriculture. An analysis of Alexander's trust accounts from 1905 Agreement that protects all Treaty Rights. to the present was also conducted. In addition, the First Nation has not yet settled its claim alleging The results of these studies were analyzed. Interest and cost of that its trust moneys were improperly used to pay for medical living adjustments were made to bring the historical losses to a 5 Questions and Answers (cont’) present value, resulting in the global amount that was 18 years of age or more decide through the voting process set out negotiated. Further details of the negotiation process can be in the trust and the voting procedures. provided during the information meetings. Q11. Will there be any per capita distribution to Q10. How will the Alexander 1905 Surrender Claim individual members of Alexander? Trust work? A11. A one-time distribution of $5,000 will be made to all of the A10. When Alexander receives money from its land or resources, members of Alexander on the day the Trust is created. It may it can be deposited into the trust accounts that are kept by of take up to three months after a successful ratification vote for the Indian and Northern Affairs Canada ("the Department"). There first year's compensation payment to be transferred by Canada, are two of these accounts, called the Capital Account and the and only then can the Trust be created. Chief and Council will Revenue Account. Money in these accounts are called "Indian be doing everything they can to get access to the compensation moneys" and come under the control of the Department and all as soon as possible. its policies, under certain sections of the Indian Act. The First Nation is currently seeking a one-time exemption from The only alternative to having the Department control our the appropriate provincial Ministers to ensure that Alberta compensation is to create a Trust Account outside of the Government Income Support Programs such as Assured Income Department for the benefit of Alexander. Under this option, the for the Severely Handicapped (AISH), Supports for Independence money is held by a Trustee or Trustees who have the legal (Social Assistance), Widows Pensions Program, and Special Needs obligation to invest and spend the money in the best interests of Assistance for Seniors will not be affected for this one-time Alexander and all members. payment. The Negotiator, Chief and Council and legal counsel recommend In addition, Indian and Northern Affairs Canada has been asked the use of a Trust Agreement that is designed by Alexander, rather to clarify and confirm that the per capita distribution will not than letting the compensation money to be controlled by the affect the status of other fixed income programs administered by Department. This will allow the money to be used in accordance the federal government, such as old age pensions. with the priorities of Alexander and not any outside authority. The Trust Agreement provides for the creation of the Minors' The Initial Trustees of the Trust will be the present Chief and Trust to hold the per capita share for all members under the age Council. The power and authorities of the Initial Trustees will be of18 when the Trust is created until they reach 21 years of age. limited to the following: • signing the Trust Agreement; Q12. Why will a member who is 18 years of age or older • establishing a trust account, into which Canada will deposit the receive his/her per capita distribution at the time of the compensation; distribution, while a member who is under age 18 at • accepting, holding and investing the trust property; and the time of the distribution has to wait until he/she • paying the per capita distributions (discussed below), and reaches 21 to receive his/her per capita distribution? administering per capita distributions for any members under A12. A member who is under age 18 at the time of the payment age 18 at the time of the distribution until these members reach of the per capita distribution will have their $5,000 distribution the age of 21 years. held in trust and invested in the Minors' Trust until he/she Within two months of the creation of the Trust, the Initial reaches age 21. On the member's 21st birthday, the member will Trustees must select and appoint a trust company to take over receive his/her per capita distribution, plus compound interest on from the Initial Trustees. The trust company will act as an the $5,000 investment from the date of payment of the per capita administrative trustee and will be responsible for: distribution until the member's 21st birthday. • financial reporting and accounting of the trust; The reason why the $5,000 per capita distribution must be held in • ensuring that investments comply with the Investment Policy the Minors' Trust until the member turns 21 is due to a provision Statement; in the Income Tax Act (Canada) which would subject the • filing tax returns; and Alexander Trust to taxation if any of the trust moneys were paid • administering the Minors' Trust. outright to any such member at any earlier date. Approximately 40 percent of the compensation from Canada If the member becomes entitled to his/her $5,000 per capita will be expended in the first five years of the existence of the distribution (and compound interest) prior to age 21, then the trust for the following purposes: Alexander trust would have to pay tax on "all" of the income • Negotiation Expenses - paid in year one (as described earlier); earned by the Minors' Trust. At present rates, this would mean • Alexander debt retirement - paid in year one (as described that approximately 40 percent of the income earned by the earlier); Minors' Trust each year would be lost to tax. • $5,000 per capita distribution to members - paid in year one; and By structuring the Alexander Trust so that a member who is • Alexander Programs and Services - approximately $3 million under age 18 at the time of the $5,000 per capita distribution will expended in year one and approximately $11 million expended receive his/her $5,000 plus compound interest when the member over five years. turns 21, the Alexander trust will not have to pay tax on the income earned by the Minors' Trust. This will leave more Approximately 60 percent of the compensation from Canada (i.e. moneys in the Alexander Trust in the long-term for the use and approximately $37 million) will be invested for the long-term benefit of the members of the Alexander First Nation. benefit of the Alexander and its members (regardless of residency). For the first 30 years of the existence of the trust, the Q13. Why is a surrender required? capital is not to be spent. Up to 50 percent of the income earned A13. The Claim Lands have not been under the control of each year will be available to be expended on budgets, including Alexander since 1905, except for a few hundred acres of programs and services proposed by members. The remaining fractional sections and road allowances that have been restored income earned each year will be added to the capital of the trust to Reserve status. Alexander's position is that none of the Claim in order to permit the capital of the trust to grow over the long- Lands have ever been surrendered and thus they are still Reserve term for the benefit of future members. land. In each year, annual program and services expenditure will be The Proposed Settlement provides for compensation in exchange voted on by the Electors, defined as the members of Alexander, for Alexander formally acknowledging the loss of this land by 18 years of age or over, through the voting procedures as set out surrendering all of its claims to the remaining 9,165 acres of that in the Proposed Trust Agreement. These procedures require that land. If there is no surrender, the settlement will not proceed. all Electors will have the opportunity to vote, regardless of residency. On the other hand, please keep in mind that the 1998 Treaty Land Entitlement Settlement provides a mechanism and the After the 30th anniversary of the creation of the trust, the funds for Alexander to repurchase the Claim Land and to have it income and capital of the trust may be expended as the members

6 Questions and Answers (cont’) added once again to the Reserve. That process is currently during the Information Meeting which are to be held in underway. The 1998 Treaty Land Entitlement Settlement also Edmonton and on the Reserve prior to the Ratification Vote. In guarantees the return of the shores and bed of Deadman's Lake to addition, Legal Counsel will make themselves available either the Reserve. The Surrender does not in any way take away these directly or by collect call to those members who wish to consult rights. with them in private. Q14. What will happen if the Proposed Settlement Bob Potts can be reached at (416) 593-3952 and Alan Pratt can Agreement and Trust Agreement are not ratified? be reached at (613) 832-1261. Their offices will accept collect calls from Alexander members. A14. If the whole settlement package (the Proposed Settlement Agreement and Trust Agreement) is not ratified, the settlement Q15. Do the Negotiator and Chief and Council will not take place and the compensation will not be paid. recommend this package? However, the Settlement Agreement does provide for a second A15. Yes, the Proposed Settlement Agreement is recommended by vote if the number of members voting is not high enough, but the First Nation's Negotiator, the Chief and Council and the legal those who vote are in favour. Otherwise, no second vote is counsel. provided for. At the end of the day, if the members of Alexander are not satisfied that this is a good settlement and do not At long last, this Proposed Settlement Agreement represents approve of the settlement, it will not proceed. closure relating to this long-outstanding claim. It provides cash compensation that will used to provide for much need program If that happened, Alexander would either have to consider and service delivery and to generate income for the long-term renegotiating the settlement or going to court. Alexander's legal benefit of Alexander and its members. counsel will provide confidential legal advice on those options

Information on Voting Canada requires that all eligible members of the Alexander First Nation vote on the 1905 Surrender Land Claim Proposed Settlement Agreement and Trust Agreement by secret ballot. To be eligible to vote in this ratification process you must be 18 years of age or over as of April 5, 2002 residing either on or off reserve. Voting will be conducted pursuant to the Indian Referendum Regulations. The Ratification Vote will take place on April 5, 2002 from 9 am to 8 pm at the following locations: • Alexander First Nation Community Centre located on the Alexander Indian Reserve; and • West Harvest Inn, Pioneer Room, 17803 Stony Plain Road, in Edmonton. The vote is being conducted by officials of Indian and Northern Affairs Canada, Alberta Region. The electoral officer is Veronica Russell and the deputy electoral officer is Tamara Kane. They will be present at the polling station on voting day. If you have Initialing of the Proposed Settlement Agreement and Trust Agreement: questions with respect to voting day, you may direct your (Left to Right Sitting) Rene Paul, Negotiator for the Alexander First Nation, question to one of them. Troy Chalifoux, Manager, Senior Negotiator, Claims, Indian and Northern Affairs Canada, Alberta Region and Frank Osendarp, Negotiator, Government If you don't ordinarily reside on the Alexander Reserve, and wish of Canada participated in a ceremony initialing the Proposed Agreements on to participate in this Ratification Vote, you may vote by mail. If February 7, 2002 in Edmonton. (Standing) Chief Victoria Arcand observes the you do not receive a mail-in ballot package and will be unable to initialing ensuring each page has the initials of the negotiators. vote in person or need more information on voting by mail, please contact Ms. Russell or Ms. Kane at: (a) the name of an elector has been omitted from the list; Veronica Russell, Electoral Officer (b) the name of an elector is incorrectly set out in the list; or Indian and Northern Affairs Canada (c) the name of the person not qualified to vote is included in Alberta Region the list. 630 Canada Place (5) For the purposes of subsection (4), a person may demonstrate: 9700 Jasper Avenue EDMONTON AB T5J 4G2 (a) that the name of an elector has been omitted from, or (780) 495-2131 (collect calls accepted) incorrectly set out in, the voters list by presenting to the electoral officer evidence from the Registrar or from the band that the Tamara Kane, Deputy Electoral Officer elector is on the Band List, is at least 18 years of age and is Indian and Northern Affairs Canada qualified to vote at band elections; and Alberta Region (b) that the name of a person not qualified to vote has been 630 Canada Place included in the voters list by presenting to the electoral officer 9700 Jasper Avenue evidence that that person is not on the Band List, is not at least EDMONTON AB T5J 4G2 18 years of age or is not qualified to vote at band elections. (780) 495-2802 (collect calls accepted) Because Alexander maintains its own membership list pursuant If you do vote by mail, note that your mail-in-ballot must be to Section 10 of the Indian Act, evidence for a change to the received by the Electoral Officer by 4:30 p.m. on April 5, 2002, in voters list as provided in Section 5 of the Indian Referendum order for your vote to be counted. Regulations must be provided to Alexander. Some sections of the Indian Referendum Regulations may be of Requests for changes to the voters list should be made to Chief interest to you. These include Subsections 4(3), 4 (4) and 4 (5) of and Council. Please contact: the Indian Referendum Regulations which read: Wyatt Arcand Administrative Operations Manager (3) On request, the electoral officer or deputy electoral officer Alexander Administration Office shall confirm whether the name of a person is on the voters list. Box 3419 (4) The electoral officer shall revise the voters list where it is MORINVILLE AB T8R 1S3 demonstrated that: (780) 939-5887 (collect calls accepted)

7 The Question on the Ballot The following is the question that will be contained on the ballot that you will receive when voting either in person or by mail: Do you agree to and approve the terms and conditions of the Settlement Agreement between Alexander and Her Majesty the Queen in right of Canada, dated for reference the 29th day of January, 2002; And do you assent to the absolute and unconditional surrender, pursuant to sections 38, 39 and 40 of the Indian Act, of all rights and interests of any kind to and in the Claim Lands shown in Strategy Session: Chief and Council and officials of both the Alexander Negotiating Committee Schedule A to the Settlement Agreement; and the Federal Government Negotiating Committee attended a strategy session on February 14, 2002 to discuss voting procedures, communicating with the membership and other details. And do you authorize and direct the present Chief and Council, and future Chiefs and Councils of Alexander to act on behalf of Alexander and its Members, to sign all documents and do all other things necessary to give effect to the Settlement Agreement including the absolute and unconditional surrender of the Claim Lands? Do you agree to and approve the terms and conditions of the Alexander Trust Agreement between Alexander and the present Chief and Council as Initial Trustees, dated for reference the 29th day of January, 2002, and do you agree to authorize and direct the present Chief and Council, and future Chiefs and Councils of Alexander to act on behalf of Alexander and its Members, to sign all documents and do all other things necessary to give effect to the Alexander Trust Agreement? As an Elector of Alexander, you are advised that the Compensation will be managed in accordance with the Alexander Trust Agreement by the Trustees appointed by Alexander and Her Majesty the Queen in right of Canada will not have any obligation or liability for the management of the Compensation by the Trustees appointed by Alexander.

Mark this Ballot by placing a cross (X) in one of these boxes.

BALLOT

YES NO

SAMPLE ONLY

Contacts for Further Information Schedule for Community Meetings If members of the Alexander First Nation require additional Members are encouraged to attend one of the information information on the Proposed Settlement Agreement and meetings that will be conducted in March 2002. At the meetings, Trust Agreement they can contact the following persons who members will be provided with details on the Proposed were involved in negotiations on behalf of the Alexander Settlement Agreement and Trust Agreement for the 1905 First Nation: Alexander First Nation Surrender Claim. Various persons who were involved with negotiations will be making presentations Rene Paul, Negotiator (780) 405-3188 and answering questions on the Proposed Settlement Agreement Alan Pratt, Legal Counsel and Trust Agreement. (Settlement Agreement) (613) 832-1261 The dates for meetings are: (collect calls accepted) Bob Potts, Legal Counsel March 21, 2002 (Settlement Agreement) (416) 593-3952 Edmonton (collect calls accepted) Chateau Louis Hotel Chris Clapperton, Legal Counsel 1727 Kingsway (Trust Agreement) (416) 593-3910 St. Michael Room (collect calls accepted) 9 am to 4 pm

Members may also contact Chief and Members of Council of March 22, 2002 the Alexander First Nation or Al Arcand, Band Administrator Alexander First Nation at (780) 939-5887 (collect calls accepted). Community Centre 10 am to 4 pm For those members wanting a copy of the Proposed Settlement Agreement and Trust Agreement they may Plan to attend one of these meetings to obtain all the details. contact Wyatt Arcand, Administrative Operations Manager at (780) 939-5887 (collect calls accepted).

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