| IMPORTANT: |
The CLASS PERIOD in this NOTICE has been incorrectly stated as October 14, 1996 to June 26, 2002. The CLASS PERIOD in this NOTICE should read October 14, 1999 to June 26, 2002 so that the CLASS PERIOD in the NOTICE matches the CLASS PERIOD in the SETTLEMENT AGREEMENT.
NOTICE OF THE SETTLEMENT OF THE BOOK4GOLF CLASS ACTION
| This notice may affect your rights. Please read carefully. |
| To class members, who are: each and every person wherever resident, except excluded persons, who, during the period of October 14, 1999 to June 26, 2002, were retail clients of Yorkton and who purchased shares of book4Golf on the secondary markets for their Yorkton account(s). |
CERTIFICATION AND SETTLEMENT APPROVAL ORDER
A class action lawsuit was commenced in Ontario against Yorkton Securities Inc., Yorkton Financial Inc. (collectively ?Yorkton?), Gordon Scott Paterson (?Mr. Paterson?) and the third party defendants alleging that they are liable to the class members who suffered a net loss in trading in Book4Golf.com corporation. A settlement was reached. Yorkton, Mr. Paterson and the third parties deny any wrongdoing or liability. The settlement is a compromise of disputed claims.
The Superior Court of Justice in Ontario has certified the action as a class proceeding and approved the settlement. This notice is only a summary of the terms of the settlement. Full particulars of the settlement are available at the website www.book4golfclass action.com
THE SETTLEMENT TERMS
Yorkton and Mr. Paterson will pay each class member an amount up to 16.44% of his, her or its net capital loss (?Net Capital Loss?), as calculated by Yorkton or claimed by the individual class members, in full and final settlement of all claims of the class members against them and others, relating to Book4Golf.
Any class member who does not opt out, will also release Yorkton, Mr. Paterson and others for any and all claims the class member may also have relating to trading in Kasten Chase Applied Research Limited, Ecom Park Inc. and Games Trader Inc.
Yorkton and Mr. Paterson will pay the costs of notification, administration and distribution of the settlement funds. Deloitte & Touche (the ?Administrator?) will administer terms of the settlement under the supervision of the court.
CALCULATION OF CLASS MEMBER NET CAPITAL LOSS
If no shares of Book4Golf were transferred out of a class member?s account at Yorkton, except for the sale of shares of Book4Golf, Yorkton will calculate each class member?s Net Capital Loss. This calculation will be provided to the class members.
If the class member agrees with Yorkton?s calculation, he, she or it need not do anything.
If the class member does not accept Yorkton?s calculation of his, her or its Net Capital Loss or if the class member transferred shares out of the Yorkton account other than by Yorkton selling those shares, then the class member may claim a Net Capital Loss:
(a) electronically, by completing and sending on line at www.book4golfclass action.com, to the Administrator the electronic version of the Class Member Election Form; or
(b) with the written consent of the Administrator, by completing and returning to the Administrator the Class Member Election Form in the manner the Administrator directs.
If the class member fails to notify the Administrator of his, her or its calculations, the Net Capital Loss for the class member shall be as Yorkton calculated if Yorkton calculated it.
Any class member who disagrees with Yorkton?s calculation or who transferred shares out of the Yorkton account other than by Yorkton selling those shares must assert a claim for a Capital Loss Payment by July 10, 2006 at 5:00 p.m. EDT.
| If Yorkton has not calculated the class member?s Net Capital Loss or if the class member disputes Yorkton?s calculations, the Administrator will approve or reject the class member?s claim for a Net Capital Loss. If the Administrator rejects the class member?s claim for a Net Capital Loss, the class member may, within 14 days of receiving notice of the rejection, elect to adjudicate the claim before the Referee. The class member will be required to post a $400 deposit prior to the adjudication. If the class member is successful in any way at the adjudication, the class member?s deposit will be returned. The decision of the Referee is final and there shall be no right of appeal or judicial review of the Referee?s decision. |
Any class member who does not wish to participate in the settlement must opt out. A class member who opts out will not be eligible for any of the benefits of the settlement. All class members who do not opt out will be bound by the terms of the settlement. Do not opt out if you wish to share in the benefits of the settlement.
To opt out, a class member must send a written notice, by prepaid mail, courier or fax on or before April 10, 2006, to:
Administrator, Deloitte & Touche
79 Wellington Street West
P.O. Box 29, TD Centre
Toronto, ON MSK lB9
Attention: Book4Golf Class Action
A written opt out notice must be signed by the class member or an authorized designee and must include the class member?s name as it appeared on his, her or its Yorkton account statement and mailing address and state that the class member opts out of the BOOK4GOLF YORKTON SECURITIES Class Action.
RELEASE OF CLAIMS AND THE EFFECT ON OTHER PROCEEDINGS
Class members who do not opt out of the action will release the defendants and the third parties for any damages relating to their trading or dealings in Book4Golf.com Corporation, Kasten Chase Applied Research Limited, Ecom Park Inc. and Games Trader Inc.
Any action that a class member who does not opt out has or may commence regarding the above named corporations will be or will be deemed to be dismissed.
As part of the settlement, Yorkton and Mr. Paterson will pay class counsel the sum of $650,000 in full payment of the plaintiff?s obligation to pay counsel fees, disbursements and applicable taxes. The court approved the payment of this amount.
This notice is a summary of some of the terms of the settlement and the judgment. If there is a conflict between the provisions of this notice and the settlement agreement and judgment, the settlement and judgment shall prevail.
This notice is approved by Mr. Justice Warren Winkler, Senior Regional Judge of the Superior Court of Justice for Ontario.
Any questions about the substantive matters in this notice should not be directed to the court as its administrative structure is not designed to answer this type of inquiry.