Ministry 0! me Mlnis|ele du Attorney General chureul geneml Legal Services Division des services |undlques Civil Remedies to! mm. Bulb-nu de moms a ram pf- nta no omce d'activites iIIlci|es 77 WBiiesiey St Wes| 77 me Weiiesiey nuas| Ru Box 555 units pnslale #555 name. ON Mm 1N8 Tulnntul ON Tel. (415. Tar (416 Fax' we) men. may November at), 2011 WITHOUT PHEJUDICE VIA FACSIMILE N0 -- Douglas H. Christie Banisler and Solicitor P.O. BOX 24052 4420 West Saanich Fioad Victoria. C. V82 7E7 Dear Sir: He: Attorney General 0! Ontario v. 2269 Highway it 105. Rugby Township. (In Rein) and Monty's Gunsmithing William Bruce Montague, and Donna Jeanne Montague Court File No.: CV 05438 This letter is to advise that Mr, McKeachie has accepted an eighteen-month secondment, and I have assumed carriage of this file. Piease find enclosed our Offer to Settle. served on you pursuant to the Rules of Civil Procedure. Vou is truly, of 1/ Lori A. Thompson Counsel Encl. Court File No. 05-138 ONTARIO SUPERIOR COURT OF JUSTICE BETWEEN: ATTORNEY GENERAL OF ONTARIO Applicant and 2269 HIGHWAY #105, RUGBY TOWNSHIP, (IN REM) AND GUN SMITHIN IN C., WILLIAM BRUCE MONTAGUE, AND DONNA JEANNE MONTAGUE Respondents OFFER TO SETTLE (Effective Friday November 30th, 2011, 5:00 The Applicant, the Attorney General of Ontario, offers to settle all proceedings in this matter on the following terms: 1. This Offer to Settle is effective from November 30, 2011 at 5:00 pm. 2. All firearms, ammunition and explosive devices, or parts thereof, [hereafter known as ?the weapons?] seized by way of the Criminal Code proceeding, not forfeited as a result of any proceeding related to the Criminal Code proceeding, shall be forfeited to the Crown in Right of Ontario, as proceeds and instruments, pursuant to the Civil Remedies Act. This forfeiture shall be subject to any criminal court forfeiture order made with I respect to all above-referenced items. All other materials seized by the police pursuant to the Criminal Code proceeding; including but not limited to, books and videos on the topic of: military tactics, improvised weapons, modification of firearms, how to make and use explosives and the growing of marihuana, [hereafter known as ?the writings and videos?], shall be forfeited to the Crown in Right of Ontario. The Respondents, William Bruce Montague and Donna Jeanne Montague, agree to pay $50,000 to the Minister of Finance, to be deposited into the Special Purpose Account, in lieu of the forfeiture of 2269 Highway #105, Rugby Township, [hereinafter ?the property?]. Subject to paragraphs 2, 3 and 4 being completed, the Attorney General of Ontario will abandon its claim seeking forfeiture of the ?property?, the ?weapons? and the ?writings and videos?, and the Attorney General of Ontario will then vacate its preservation orders with respect to the ?property?. The Respondents also agree that the forfeiture proceeding will be adjourned sine die until the funds have been deposited into the Special Purpose Account. Upon those funds being deposited, the Attorney General of Ontario will seek a dismissal of the forfeiture proceeding and will lift the preservation order with respect to the ?property?, the ?weapons? and the ?writings and videos?. If said funds are not deposited in the Special Purpose Account by May 18, 2012, the Respondents agree that said failure will serve as an acknowledgement that the ?property? is both a proceed and instrument of unlawful activity as defined in the Civil Remedies Act, and the ?property?, the ?weapons? and the ?writings and videos? will be immediately forfeited to the Crown in Right of Ontario. The Respondents agree that within 30 days of the signing of the settlement document, certain structural changes to the ?property? will commence. Said changes will be made by the Respondents to the ?property? and such structural costs will be born by the Respondents. These changes must be completed within 60 days of their commencement. Said structural changes include: a) b) The ?secret room? shall be remediated in the following fashion: any equipment related to making or altering firearms or any other weapons shall be removed and the location shall be renovated so that there is a proper, regular, non ?secret? entrance. The Respondents will be required to obtain a proper, validly issued building permit from the City of Kenora at the commencement of the remediation and said remediation must be performed in compliance of and pursuant to the Ontario Building Code. The Ministry of the Attorney General, Civil Remedies Branch, must be provided with written and photographic documentation to establish the completion of the remediation within 5 (five) business days of completion. The shooting range tunnel must be permanently filled in. The Respondents will be required to obtain a proper, validly issued building permit from the City of Kenora at the commencement of the remediation and said remediation must be performed in compliance of and pursuant to the Ontario Building Code. The Ministry of the Attorney General, Civil Remedies Branch, must be 10. 11. provided with written and photographic documentation to establish the completion of the remediation within 5 (five) business days of completion. The parties shall execute Minutes of Settlement and William Bruce Montague and Donna Jeanne Montague shall certify that they have received independent legal advice with respect to the terms of the settlement. The parties agree that this Offer is separate and apart from any offer made by the Attorney General of Ontario in the criminal court proceedings. The parties also agree that acceptance of this Offer is not dependent on acceptance or non?acceptance of any settlement agreement in the criminal court proceedings. The Respondents agree that they will not disseminate, in any fashion, including through electronic media, the terms of this offer. The parties agree that the following statement may be posted on the Respondents? website and published by the Ministry of the Attorney: The litigation in this matter is now completed. Both parties were able to reach a settlement. Both sides are content with the settlement in this case. Both sides have agreed not to discuss the terms of the settlement other than with counsel and with each other. The parties may agree to publish additional information but only on the written consent of the other party in advance. The parties shall be responsible for their own costs of this litigation. 12. 13. 14. This Offer to Settle is intended to completely and finally resolve all litigation which is the subject of this Civil Remedies Act, 200] proceeding, between the Attorney General of Ontario on the one hand and the company and other assets owned by William Bruce Montague and Donna Jeanne Montague as listed in the title of proceedings in this case, on the other hand. This Offer will remain open for acceptance until five minutes after the commencement of the forfeiture hearing in this matter. If, at any time, the Respondents breach any term of this agreement, the Respondents agree that said failure will serve as an acknowledgement that the ?property? is both a proceed and instrument of unlawful activity as defined in the Civil Remedies Act, and the ?property? will be immediately forfeited to the Crown in Right of Ontario. In addition, any breach of any term of this agreement will mean that the Respondents will also forfeit the ?weapons? and ?the writings and Videos? seized by the police [and not forfeited as a result of the criminal forfeiture procedure] as part of the criminal proceeding. DATED: To: November 30, 2011 Lori A. LSUC #4360013 Fax: 416 Ministry of the Atlomcy General Legal Services Division Civil Remedies for Illicit Activities Olfice (CRIA) Counsel fur the Applicant the Allomcy General of Ontario Mailing address and courier address: 77 Wellesley Street West PO, Box #555 anuntu ON M7A 1N3 Address for service of documents: 720 Bay Street, Floor Toronto, ON M7A 259 Douglas H. Christie Barrister and Solicitor Pro. Box Z4052 4420 West Snanich Road Victoria, BC, V81 7E7 Counsel for the awn > "25:50an no 89:; he $963". . m7: