Court File No. CV-14-10518-00CL
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Court File No. CV-14-10518-00CL ONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST) IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36, AS AMENDED AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF 1511419 ONTARIO INC., FORMERLY KNOWN AS THE CASH STORE FINANCIAL SERVICES INC., 1545688 ALBERTA INC., FORMERLY KNOWN AS THE CASH STORE INC., 986301 ALBERTA INC., FORMERLY KNOWN AS TCS CASH STORE INC., 1152919 ALBERTA INC., FORMERLY KNOWN AS INSTALOANS INC., 7252331 CANADA INC., 5515433 MANITOBA INC., AND 1693926 ALBERTA LTD., FORMERLY DOING BUSINESS AS “THE TITLE STORE” APPLICANTS PLAN OF COMPROMISE AND ARRANGEMENT pursuant to the Companies’ Creditors Arrangement Act concerning, affecting and involving 1511419 ONTARIO INC., FORMERLY KNOWN AS THE CASH STORE FINANCIAL SERVICES INC., et al October 6, 2015 ARTICLE 1 INTERPRETATION................................................................................................. 4 1.1 Definitions.............................................................................................................. 4 1.2 Certain Rules of Interpretation............................................................................. 26 1.3 Currency............................................................................................................... 27 1.4 Successors and Assigns........................................................................................ 28 1.5 Governing Law .................................................................................................... 28 1.6 Schedules ............................................................................................................. 28 ARTICLE 2 PURPOSE AND EFFECT OF THE PLAN............................................................ 28 2.1 Purpose................................................................................................................. 28 2.2 Claims Affected ................................................................................................... 29 2.3 Unaffected Claims against the Applicants Not Affected..................................... 29 ARTICLE 3 CLASSIFICATION, VOTING AND RELATED MATTERS .............................. 29 3.1 Affected Creditor Claims..................................................................................... 29 3.2 Classification........................................................................................................ 30 3.3 Unaffected Creditors............................................................................................ 30 3.4 Creditors’ Meeting............................................................................................... 30 3.5 Approval by Creditors.......................................................................................... 30 ARTICLE 4 DISTRIBUTIONS, PAYMENTS AND TREATMENT OF CLAIMS.................. 30 4.1 Treatment of Senior Secured Lenders.................................................................. 30 4.2 Treatment of Secured Noteholders ...................................................................... 31 4.3 Treatment of Consumer Class Action Class Members in respect of Priority Motion Settlement, DirectCash Global Settlement and D&O/Insurer Global Settlement................................................................................................. 32 4.4 Treatment of Securities Class Action Class Members in respect of D&O/Insurer Global Settlement .......................................................................... 34 ARTICLE 5 DISTRIBUTION MECHANICS ............................................................................ 34 5.1 Distribution Mechanics with respect to Plan Payments to Senior Secured Lenders................................................................................................................. 34 5.2 Distribution Mechanics with respect to Plan Payments to Secured Noteholders.......................................................................................................... 35 5.3 Treatment of Undeliverable Distributions ........................................................... 35 5.4 Tax Refunds......................................................................................................... 36 5.5 Other Payments and Distributions ....................................................................... 36 5.6 Note Indenture to Remain in Effect Solely for Purpose of Subsequent Distributions to Secured Noteholders .................................................................. 36 5.7 Assignment of Claims for Distribution Purposes ................................................ 37 5.8 Withholding Rights.............................................................................................. 37 5.9 Foreign Recognition............................................................................................. 38 5.10 Further Direction of the Court ............................................................................. 38 ARTICLE 6 PLAN IMPLEMENTATION ................................................................................. 38 6.1 Corporate and Other Authorizations.................................................................... 38 - 2 - 6.2 Pre-Plan Implementation Date Transactions ....................................................... 38 6.3 Plan Implementation Date Transactions .............................................................. 39 6.4 Post Plan Implementation Date Transactions ...................................................... 43 6.5 Monitor’s Role..................................................................................................... 45 ARTICLE 7 RELEASES............................................................................................................. 46 7.1 Plan Releases ....................................................................................................... 46 7.2 Claims Not Released............................................................................................ 47 7.3 Injunctions............................................................................................................ 47 7.4 Timing of Releases and Injunctions..................................................................... 48 7.5 Remaining Estate Actions Against the Remaining Defendants........................... 48 7.6 Pierringer Provision ............................................................................................ 48 ARTICLE 8 COURT SANCTION.............................................................................................. 49 8.1 Application for Sanction Order and Class Action Settlement Approval Orders................................................................................................................... 49 8.2 Sanction Order ..................................................................................................... 49 ARTICLE 9 CONDITIONS PRECEDENT AND IMPLEMENTATION.................................. 52 9.1 Conditions Precedent to Implementation of the Plan .......................................... 52 9.2 Monitor’s Certificate of Plan Implementation..................................................... 54 ARTICLE 10 PROSECUTION AND SETTLEMENT OF REMAINING ESTATE ACTIONS ........................................................................................................................ 54 10.1 Prosecution of Remaining Estate Actions............................................................ 54 10.2 Settlement Releases for Remaining Defendants.................................................. 54 ARTICLE 11 GENERAL............................................................................................................ 55 11.1 Binding Effect...................................................................................................... 55 11.2 Deeming Provisions............................................................................................. 55 11.3 Non-Consummation............................................................................................. 55 11.4 Modification of the Plan ...................................................................................... 56 11.5 Actions and Approvals of the Applicants after Plan Implementation ................. 57 11.6 Consent of the Ad Hoc Committee...................................................................... 57 11.7 Paramountcy ........................................................................................................ 57 11.8 Severability of Plan Provisions............................................................................ 58 11.9 Responsibilities of the Monitor............................................................................ 58 11.10 Chief Restructuring Officer ................................................................................. 58 11.11 Different Capacities ............................................................................................. 58 11.12 Notices ................................................................................................................. 59 11.13 Further Assurances............................................................................................... 62 - 3 - PLAN OF COMPROMISE AND ARRANGEMENT WHEREAS the Applicants are insolvent; AND WHEREAS, on April 14, 2014 (the “Filing Date”), the Honourable Justice Morawetz of the Ontario Superior Court of Justice (Commercial List) (the