Official Form 425A Plan of Reorganization for Small Business Under Chapter 11 page 1 Check if this is an amended filing Official Form 425A Plan of Reorganization for Small Business Under Chapter 11 12/17 [Name of Proponent Insert Date] Article 1 : Summary This Plan of Reorganization (the Plan ) under chapter 11 of the Bankruptcy Code (the Code ) proposes to pay creditors of [ insert the name of the D ebtor ] (the Debtor ) from [ Specify sources of payment, such as an infusion of capital, loan proceeds, sale of assets, cash flow from operations, or future income ] . This Plan provides for : c lasses of priority claims; c lasses of secured claims; c lasses of non - priority unsecured clams; and classes of equity security holders. Non - priority u nsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately cents on the dollar. This Plan also provides for the payment of administrative and priority claims . All creditors and equi ty security holders should refer to Articles 3 through 6 of this Plan for information regarding the precise treatment of their claim . A disclosure statement that provides more detailed information regarding this Plan and the rights of creditors and equity security holders has been circulated with this Plan . Your rights may be affected. You should read these papers carefully and discuss them with your attorney, if you have one. (If you do not have an attorney, you may wish to consult one.) Article 2: Classification o f Claims a nd Interests 2.01 Class 1 ................................ All allowed claims entitled to priority under 247 507 ( a ) of the Code (except administrative expense claims under 247 507(a)(2), ] and priority tax claims under 247 507(a)(8)) . [Add class es of priority claim s , if a pplicable ] 2.0 2 Class 2 ................................ ... The claim of , to the extent allowed as a secured claim under 247 506 of the Code. [ Add other classes of secured creditors, if any. Note : Section 1129(a)(9)(D) of the Code provides that a secured tax claim which would otherwise meet the description of a priority tax claim under 247 507(a)(8) of the Code is to be paid in the same manner and over the same period as prescribed in 247 507(a)(8).] 2.0 3 Class 3 ................................ ... All non - priority unsecured claims allowed under 247 502 of the Code. [ Add other classes of unsecured claims, if any. ] D ebtor Name United States Bankruptcy Court for the: District of ( State ) Case number: Fill in this information to identify the case: American LegalNet, Inc. www.FormsWorkFlow.com Debtor Name Case number Official Form 425A Plan of Reorganization for Small Business Under Chapter 11 page 2 2.0 4 Class 4 ................................ ... Equity interests of the Debtor . [ If the Debtor is an individual, change this heading to The interests of the individual Debtor in property of the estate .] Article 3: Treatment o f Administrative Expense Claims, Priority Tax Claims , and Quarterly and Court Fees 3 .01 Unclassified claims Under section 247 1123(a)(1), administrative expense claims, involuntary case allowed under 247 502(f) of the Code, ] and priority tax claims are not in classes. 3 .0 2 Administrative expense claims Each holder of an administrative expense claim allowed under 247 503 of the Code , [ and involuntary case allowed under 247 502(f) of the Code, ] will be paid in full on the effective date of this Plan, in cash, or upon such other terms as may be agreed upon by the holder of the claim and the Debtor. 3 .0 3 Priority tax claims Each holder of a priority tax claim will be paid [ Specify terms of treatment consistent with 247 1129(a)(9)(C) of the Code ] . 3 .0 4 Statutory fees All fees required to be paid under 28 U.S.C. 247 1930 that are owed on or before the effective date of this Plan have been paid or will be paid on the effective date. 3 .0 5 Prospective quarterly fees All quarterly fees required to be paid under 28 U.S.C. 247 1930(a)(6) or (a)(7) will accrue and be timely paid until the case is closed, dismissed, or converted to another chapter of the Code. Article 4: Treatment o f Claims and Interests Under the Plan 4 .01 Claims and interests shall be treated as follows under this Plan: Class Impairment Treatment Class 1 - Priority c laims excluding those in Article 3 Impaired Unimpaired [Insert treatment of priority claims in this Class, including the form, amount and timing of distribution, if any. holder of a Class 1 Priority Claim will be paid in full, in cash, upon the later of the effective date of this Plan, or the date on which such claim is allowed by a final non - appealable order. Exce pt: [Add classes of priority claims if applicable] Class 2 Secured claim of [ Insert name of secured creditor .] Impaired Unimpaired [Insert treatment of secured claim in this Class, including the form, amount and timing of distribution, if any.] [Add classes of secured claims if applicable] Class 3 Non - priority unsecured creditors Impaired Unimpaired [Insert treatment of unsecured creditors in this Class, including the form, amount and timing of distribution, if any.] [Add administrative convenience class if applicable] Class 4 - Equity security holders of the D ebtor Impaired Unimpaired [Insert treatment of equity security holders in this Class, including the form, amount and timing of distribution, if any.] Article 5: Allowance and Disallowance of Claims 5 .01 Disputed c laim A disputed claim is a claim that has not been allowed or disallowed [ by a final non - appealable order ] , and as to which either: (i) a proof of claim has been filed or deemed filed, and the Debtor or another party in interest has filed an objection; or (ii) no proof of claim has been filed, and the Debtor has scheduled such claim as disputed, contingent, or unliquidated. 5 . 0 2 Delay of distribution on a disputed claim No distribution will be made on account of a disputed claim unless such claim is allowed [ by a final non - appealable order ] . American LegalNet, Inc. www.FormsWorkFlow.com Debtor Name Case number Official Form 425A Plan of Reorganization for Small Business Under Chapter 11 page 3 5 .0 3 Settlement of disputed claims The Debtor will have the power and authority to settle and compromise a disputed claim with court approval and compliance with Rule 9019 of the Federal Rules of Bankruptcy Procedure. Article 6: Provisions for Executory Contracts and Unexpired Leases 6 .01 Assumed executory contracts and unexpired leases (a) T he Debtor assumes , and if applicable assigns, the following executory contracts and unexpired leases as of the effective date : [ List assumed , or if applicable assigned, executory contracts and unexpired leases. ] (b) Except for executory contracts and unexpired leases that have been assumed , and if applicable assigned, before the effective date or under section 6.01(a) of this Plan, or that are the subject of a pending motion to assume, and if applicable assign, t he Debtor will be conclusively deemed to have rejected all executory contracts and unexpired leases as of the effective date. A proof of a claim arising from the rejection of an executory contract or unexpired lease under this section must be filed no later than days after the date of the order confirming this Plan . Article 7: Means for Implementation of the Plan [ Insert here provisions regarding how the plan will be implemented as required under 247 1123(a)(5) of the Code. For example, provisions may include those that set out how the plan will be funded, including any claims reserve to be established in connection with the plan, as well as who will be serving as directors, officers or voting trustees of the reorganized D ebtor. ] Article 8: General Provisions 8 .01 Definitions an d rules of construction The definitions and rules of construction set forth in 247247 101 and 102 of the Code shall apply when terms defined or construed in the Code are used in this Plan, and they are supplemented by the following definitions: [ Insert additional definitions if nece ssary ] . 8 .0 2 Effective date The effective date of this Plan is the fi