SCHEDULE A LEGAL NOTICE OF CERTIFICATION AND PROPOSED SETTLEMENT IF YOU ARE A CANADIAN RESIDENT AND USED THE WALMART PHOTOCENTRE WEBSITE BETWEEN JUNE 1, 2014 AND JULY 10, 2015, PLEASE BE ADVISED THAT A CLASS PROCEEDING HAS BEEN CERTIFIED AND A SETTLEMENT APPROVAL HEARING IS SCHEDULED FOR MAY 30, 2017. 1. What is this lawsuit about? A Representative Plaintiff, Heather Drew, brought a national Class Proceeding against Wal-Mart Canada Corp and PNI Digital Media Inc. ( Walmart and PNI ), seeking damages on behalf of Walmart customers resident or situated in Canada who used Walmart s Photocentre website between June 1, 2014 and July 10, 2015 and whose personal information may have been compromised in a data security incident that was first disclosed in July 2015. The Class Proceeding was conditionally certified for settlement purposes on December 22, 2016. Flaherty McCarthy LLP represents the national class ( Class Counsel ). The purpose of this document is to provide notice to Class Members that the Class Proceeding has been certified, that the parties have entered into a Settlement Agreement that is subject to Court approval and, that a hearing to determine whether the Settlement Agreement will be approved will be held in Toronto on May 30, 2017, or such other date determined by the Court. 2. Am I a member of the Class? You are a member of the Class and entitled to participate in the proceeding if (1) you are a resident of or are situated in Canada, and (2) you used the Walmart Photocentre website between June 1, 2014 and July 10, 2015 (the Settlement Class ). You may opt out of the Class by following the procedure described under 4. How do I opt out of the Class?, below. If you opt out of the Class, you will not be eligible to recover any benefits if the settlement is approved by the Court. 3. What benefits will be available under the Proposed Settlement? The Settlement Agreement provides that Walmart and PNI will pay for certain benefits for Class Members ( Proposed Settlement ), although neither Walmart nor PNI admit any liability. The Proposed Settlement is subject to Court approval and the stay of all other Canadian class proceedings arising from the data security incident. You are not entitled to recover any benefits under the Proposed Settlement until it is approved by the Court and, if approved by the Court, until your application is approved by the Claims Administrator, as described in more detail below.
The Proposed Settlement, if approved, will provide the following: 2 Cash Fund: If you are a member of the Settlement Class and have losses caused by the data security incident (including unreimbursed fraudulent charges or time spent remedying any fraudulent charges to your credit card), you will be able to apply for reimbursement of those losses in accordance with the Settlement Agreement. Any Class Member making a claim for out-ofpocket losses may receive $15/hr for up to five hours of time spent remedying those losses, if the Class Member can provide documented evidence of such losses. If a Class Member cannot provide documented evidence of such losses, the Class Member may receive $15/hr for up to two hours of time spent remedying the losses. The maximum cumulative total available under the Proposed Settlement for the recovery of losses is $400,000.00, to be distributed to Class Members who are eligible and submit a valid claim, in the order in which claims are made. Monitoring Services: If you are a member of the Settlement Class, you will be able to apply for free credit monitoring services for up to one year, regardless of whether you submit a claim to the Cash Fund. If you are a member of the Settlement Class who purchased credit monitoring services as a result of the data security incident, you will be able to apply for reimbursement of the cost of those services in accordance with the Settlement Agreement. The maximum cumulative total available under the Proposed Settlement for Credit Monitoring is $350,000.00, to be distributed in the order in which claims are made. Eligible persons may make claims for both reimbursement under the Cash Fund and the Credit Monitoring Service. Walmart and PNI will also pay for the costs of administering these benefits, up to $250,000.00. 4. How do I opt out of the Class? A judgment (including an approved settlement), whether favourable or not, will bind all Class Members who do not opt out of the Class. If you want to sue or continue to sue Walmart and/or PNI based on claims this proceeding will resolve, you must take steps to opt out of the Class. If you opt out of the Class, you will not be eligible to recover any benefits under a settlement or award in this Class Proceeding. Members of the Class may exercise their right to opt out of the Class by submitting a letter by mail stating that you wish to opt out of the Settlement. Your Opt-Out Form must include: 1. The name of this proceeding (Drew v. Walmart and PNI, or similar identifying words); 2. Your full name, email address, mailing address, and telephone number; 3. Your signature or the signature of your legal agent, acting with your instructions; 4. A copy of the purchase invoice for any purchases from the Walmart Photocentre between June 1, 2014 and July 10, 2015;
3 5. A brief statement that you understand that you will be excluded from the settlement benefits if the settlement is approved; and 6. A brief statement as to whether you intend to begin a separate individual lawsuit against Walmart and/or PNI regarding the data security incident. An Opt-Out Form is available on the settlement website (www. walmartphotosettlement.com). Your Opt-Out Form must be postmarked for regular mail or submitted to courier for delivery to the address below, by no later than May 15, 2017. Deloitte LLP c/o Claims Administrator Walmart Photo Settlement 22 Adelaide Street West, Suite 200 Toronto, ON M5H 0A9 You cannot exclude yourself by telephone or email. You cannot exclude yourself by mailing a notification to any other location or if your Opt-Out Form is post marked or submitted to courier after the deadline of May 15, 2017. 5. How do I tell the Court that I don t like the Settlement? If you are a Class Member you have the right to participate in this proceeding. If you are a Class Member, you can object to the Settlement if you don t think it is fair, reasonable, or in the best interests of the Class Members. You can give reasons why you think the Court should not approve it. The Court will consider your views. To object, you must send a letter stating that you object to the Settlement. Your objection must include: 1. The name of this proceeding (Drew v. Walmart and PNI, or similar identifying words); 2. Your full name, email address, mailing address, and telephone number; 3. Your signature or the signature of your legal agent, acting with your instructions; 4. A copy of the purchase invoice for any purchases from the Walmart Photocentre between June 1, 2014 and July 10, 2015; 5. A brief statement of the reason(s) for your objection; and 6. A brief statement as to whether you or your representative intends to appear at the Approval Hearing on May 30, 2017 in person or by counsel. If by counsel, please include the name, address, telephone number, fax number, and email address of counsel.
An Objection Form is available on the settlement website (www.walmartphotosettlement.com). 4 Your Objection Form must be postmarked for regular mail or submitted to courier for delivery to the address below, by no later than May 15, 2017. Deloitte LLP c/o Claims Administrator Walmart Photo Settlement 22 Adelaide Street West, Suite 200 Toronto, ON M5H 0A9 You cannot object to the settlement by telephone or email. You cannot object to the settlement by mailing a notification to any other location or if your Objection Form is post marked or submitted to courier after the deadline of May 15, 2017. 6. When is the Approval Hearing for the Proposed Settlement? A hearing has been scheduled for May 30, 2017 at 10:00 am before the Ontario Superior Court of Justice at Osgoode Hall, 130 Queen Street West, Toronto, Ontario. At the Approval Hearing, the Court will determine whether the Proposed Settlement is reasonable and in the best interests of the Class. The Court will listen to members of the Class who attend to voice support for or objections to the Proposed Settlement. The Court will also consider the amount that shall be paid by Walmart and PNI to Class Counsel for lawyers fees. For further information, see 10. Class Counsel Compensation, below. If the Proposed Settlement is approved by the Court and you do not opt out within the prescribed time, you will be bound by the terms of the settlement. You will not be entitled to any other remedy for the data security incident. 7. How do I get Benefits? To obtain compensation, you will need to submit a Claim Form to the Claims Administrator. If the Proposed Settlement is approved at the Approval Hearing on May 30, 2017, or other date, as set by the Court, you will subsequently receive notification of how to access and submit the Claims Form. 8. When will I receive my payment? If you submit a complete, accurate, valid, and timely Claim Form, the Claims Administrator will send your payment to you in accordance with the Settlement Agreement after the settlement is finally approved and all appeals have been resolved or exhausted.
9. The Effect of not Opting Out (Staying in the Class) 5 Generally speaking, unless you opt out of the Class, you will give up your right to sue Walmart or PNI or to be part of any other lawsuit against Walmart and PNI about the issues this lawsuit resolves. Unless you opt out, all of the Court s decisions will bind you. More specifically, if the Proposed Settlement is approved, you shall not have or thereafter institute, continue, maintain or assert, either directly or indirectly, whether in Canada or elsewhere, on your own behalf or on behalf of any class or any other person (including any persons opting out of the Class), any action, suit, cause of action, claim or demand against any Released Parties or any other person who may claim contribution or indemnity from any Releasee in respect of any Settled Claims or any matter related thereto. Those terms are defined here: (a) Settled Claims shall mean any and all claims of Class Members, against the Released Parties, whether or not assigned and whether known or unknown, asserted or unasserted, regardless of the legal theory, existing now or in the future, in any way arising out of or relating to, directly or indirectly, the Data Security Incident. Such claims include, without limitation, all claims for damages or remedies of whatever kind or character, including, without limitation, compensatory, punitive, aggravated, exemplary, statutory and multiple damages or penalties of any kind, known or unknown, that are now or may be recognized by law including, without limitation, claims for costs or interest. (b) Released Parties shall mean PNI and Walmart, as well as their respective predecessors, successors, parents, subsidiaries, affiliates, associated companies and divisions, and each of their respective current and former shareholders, officers, directors, employees, lawyers, attorneys, agents, insurers, reinsurers, trustees, assigns, owners, consultants, suppliers, distributors and partners. 10. How will Class Counsel be compensated? Flaherty McCarthy LLP will ask the Court to approve its lawyers fees, disbursements, and HST in the total amount of $250,000. These fees and costs will be paid separately by Walmart and PNI and will not reduce the amount of benefits provided to the Class. Class Counsel will make this request for fees at the Approval Hearing on May 30, 2017, or such other date as set by the Court. 11. How can I obtain further information? This Notice summarizes the Proposed Settlement. You may obtain a copy of the Settlement Agreement itself by visiting the claims administration website at: www.walmartphotosettlement.com. You may direct any questions to the Claims Administrator at walmartphoto@deloitte.ca
6 12. How can I Contact Class Counsel? Sean Brown Flaherty McCarthy LLP - Toronto Toronto-Dominion Centre 95 Wellington Street West Suite 1000, 10 th Floor Toronto, ON M5J 2N7 Tel: 416-548-4738 Fax: 416-368-9229 walmartphoto@fmlaw.ca