Travel CUTS Lawsuit settled

Settlement of Travel CUTS Ownership Question Close at Hand

(Edmonton, AB) – The University of Alberta Students’ Union has,
as of last Thursday, February 16, 2006, ratified a settlement
agreement with the Canadian Federation of Student-Services
concerning the ownership of Canadian University Travel Services
Limited (Travel CUTS).

All parties have agreed to the release, today, of a joint statement
concerning the settlement. The joint statement is attached.

“We are very pleased, on behalf of our students, to be moving
close to resolution in the longstanding question of the ownership of
Travel CUTS,” said Graham Lettner, President of the University of
Alberta Students’ Union. “We now look forward to focusing on
ensuring that Travel CUTS continues to serve Canadian students’
travel needs.”

Two of the other plaintiffs in the action, The Queen’s University
Alma Mater Society and the University Students’ Council,
University of Western Ontario, have also ratified the agreement.
The fourth plaintiff, the Alma Mater Society of the University of
British Columbia, has agreed to the settlement pending ratification,
which will be considered tomorrow.

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JOINT STATEMENT

The Canadian Federation of Students-Services and the University Students’
Council of the University of Western Ontario, the University of Alberta Students’
Union, the Alma Mater Society of the University of British Columbia and the Alma
Mater Society of Queen’s University today announced that they have agreed to
the settlement of a lengthy legal dispute relating to the ownership of the
Canadian Universities Travel Service Limited (Travel CUTS). This agreement is
subject to the ratification of the governing structures of each organization. The
Canadian Federation of Students-Services, the University Students’ Council of
the University of Western Ontario, the University of Alberta Students’ Union and
the Alma Mater Society of Queen’s University have now ratified the agreement.

Travel CUTS was established in 1974 by the members of the Association of
Student Councils (AOSC) Canada to provide travel and travel-related services to
Canadian students. Travel CUTS operates travel offices on university and
college campuses and at off-campus locations throughout Canada serving both
student and non-student markets. Travel CUTS is also the owner of a USregistered
subsidiary, Travel Adventures LLC (“The Adventure Travel
Company”).

Recognizing the importance of advancing the interests of Canadian students and
avoiding a protracted legal dispute, the parties have chosen to enter into an
agreement which places Travel CUTS in a positive position to serve the
Canadian student market. The agreement resolving this case avoids a trial
which would likely have taken some 8 to 10 weeks.

Under the agreement resolving the case, the Canadian Federation of Students-
Services will retain 76% of the ownership of CUTS. The remaining 24% of CUTS
shares will be held by a newly formed non-profit corporation which will include
the four Plaintiff student associations as well as other non-Canadian Federation
of Students-Services member associations which belonged to AOSC. The Board
of Directors of CUTS will be expanded to eight members, two of whom will be
appointed by the new shareholder. The agreement also addresses the ongoing
governance of CUTS through a Unanimous Shareholders Agreement, and
provides for the sharing of past and future revenues between the shareholders.

All parties to the litigation have worked to create a framework through settlement
for a productive and co-operative approach in the management of Travel CUTS.
Both sides consider that the settlement reflects their mutual interest in ensuring
that Travel CUTS continues to be a successful, student-owned travel agency
providing the best level of service to Canadian students and the broader travel
market.