Legal Consumer Proposal

Legal Consumer Proposal

THIS CONSUMER PROPOSAL is made and entered into on this by and between Proposer Name: of Address: (hereinafter "Proposer") and Proposal Administrator Name: of Address: (hereinafter "Administrator").

Recitals

WHEREAS the Proposer is indebted to certain creditors and seeks to make a proposal for the settlement of those debts under the terms set out in this document; and

WHEREAS the Administrator has agreed to administer and present this proposal to the Proposer's creditors, to receive and hold payments, and to distribute funds in accordance with the terms of this proposal and applicable insolvency practice; and

WHEREAS the Proposer wishes to avoid bankruptcy and to provide an orderly, equitable distribution to creditors by means of a consumer proposal under the terms set forth below.

NOW THEREFORE

In consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Definitions

1.1 "Claim" means any right, claim, debt or liability of a creditor that is proved or provable in respect of the Proposer as of the Proposal Date, including contingent and disputed claims. 1.2 "Proposal Date" means the date inserted in the opening paragraph. 1.3 "Distributions" means payments made by the Administrator to creditors in accordance with this proposal and applicable distribution principles.

2. Proposal Offer

2.1 The Proposer offers to pay to the Administrator for distribution to creditors the sum of: (the "Proposal Amount"), which, if accepted by creditors in accordance with applicable rules, shall be in full and final settlement of Claims against the Proposer as of the Proposal Date except for secured claims as expressly preserved in section 2.4.

2.2 The Proposal Amount will be paid according to the schedule set out in section 3 below. Payments received by the Administrator shall be applied first to the costs of administration, then to agreed distributions to creditors on a pro rata basis in accordance with proved Claims, subject to any priority claims required by law.

2.3 The Proposer represents and warrants that the Proposal Amount is offered in good faith, that the Proposer has fully disclosed all material assets and liabilities, and that no transfer of property has been made by the Proposer within a period that would render such transfer voidable under applicable insolvency rules other than transfers disclosed to the Administrator.

2.4 Secured creditors are treated as follows:

3. Payment Schedule

3.1 The Proposer shall make payments in the amount of per commencing on until the Proposal Amount, together with administration costs, has been paid in full.

3.2 The Administrator shall provide periodic statements of account to the Proposer and to creditors in accordance with standard distribution practice and shall retain records of receipts and disbursements.

4. Acceptance, Voting, and Effective Date

4.1 This proposal becomes binding as an agreement between the Proposer and the accepting creditors only if accepted by the required majority of creditors in accordance with applicable voting rules and the Administrator files any required notices confirming acceptance.

4.2 The Effective Date of this proposal shall be the date upon which acceptance is confirmed by the Administrator in writing, or such other date determined by applicable insolvency procedure.

5. Administration and Distribution

5.1 The Administrator shall act as the receiving agent for payments, shall hold funds in trust, shall apply and distribute funds in accordance with this proposal and applicable distribution standards, and shall be entitled to be paid reasonable administration fees and disbursements prior to distributions to creditors.

5.2 The Administrator's fees and projected disbursements are estimated to be: and will be deducted from receipts prior to creditor distributions.

6. Default and Remedies

6.1 Failure by the Proposer to make any payment required under this proposal within 15 days of its due date shall constitute an event of default. The Administrator shall provide written notice of default to the Proposer and to creditors. If the default is not remedied within 30 days of such notice, the Administrator may seek termination of the proposal and pursue available remedies pursuant to applicable insolvency practice.

6.2 Remedies available to creditors upon termination include, but are not limited to, resumption of enforcement of unsecured claims as permitted by law and the application of any amounts collected toward outstanding liabilities in accordance with priority rules.

7. Discharge Upon Completion

7.1 Subject to applicable insolvency law and the Administrator's certification of completion, upon full performance of the obligations set out in this proposal and payment of the Proposal Amount and administration costs, the Proposer shall be entitled to a discharge in respect of those Claims settled pursuant to this proposal.

8. Representations and Warranties

8.1 The Proposer represents and warrants that all information provided to the Administrator is true, complete and accurate to the best of the Proposer's knowledge, that full disclosure of assets, liabilities, income and expenses has been provided, and that no material information has been withheld that would affect creditor voting or distributions.

9. Notices

9.1 Notices shall be in writing and shall be delivered by personal delivery, nationally recognized courier, or by registered mail. Notices are effective on delivery or on refusal if delivery is refused.

10. Amendments; Waiver

10.1 This proposal may be amended only by a written instrument signed by the Proposer and the Administrator and, where required, approved by creditors in accordance with applicable voting procedures. 10.2 No waiver of any breach of this proposal shall be effective unless in writing and signed by the party granting the waiver; no single waiver shall constitute a waiver of any subsequent breach.

11. Governing Law

11.1 This proposal shall be governed by and construed in accordance with the substantive laws applicable to insolvency and proposals in the jurisdiction where the Administrator is registered to practice and shall be subject to the applicable insolvency procedures.

12. Entire Agreement

12.1 This document constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations and agreements, whether written or oral, relating to the proposal.

13. Severability

13.1 If any provision of this proposal is found to be illegal, invalid or unenforceable, such provision shall be severed and the remainder of this proposal shall remain in full force and effect to the greatest extent permitted by law.

14. Counterparts

14.1 This proposal may be executed in counterparts and delivered electronically; each counterpart shall be deemed an original and all counterparts together shall constitute one and the same instrument.

15. Additional Terms

The Proposer acknowledges that the Proposer has provided to the Administrator all material information regarding assets, liabilities, income and expenses and understands that incomplete disclosure may prejudice the Proposer's rights under this proposal.

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