Premium Brands Operating Limited Partnership November 14th, 2016 TABLE OF CONTENTS Program Overview Up-front Offer What’s New at Air Canada? 2 AIR CANADA CORPORATE REWARDS UP-FRONT OFFER 3 CORPORATE REWARDS (ACCR) OVERVIEW . An Enrollment based online program that rewards companies when booking with Air Canada and the Lufthansa Group. Available to companies that do not have an existing Air Canada Agreement. Discount and rewards defined at spend thresholds booked through Corporate Rewards Program. Earn Rewards • Discounts on Air Canada and select Lufthansa Group flights • Exclusive promotional offers • Discounts on Preferred seat selection • eUpgrade Credits • Maple Leaf™ Lounge access • On My Way™ travel assistance 4 OPTIONAL PARTNER PROGRAMS Access to car rental corporate rates and premium services through Avis and Budget corporate awards programs • At the end of each calendar year, your company will be eligible to receive Cash Back on purchases of eligible Air Canada flights charged to any American Express AeroplanPlus Corporate Card. • Earn up to 4% Cash Back on Eligible Air Canada Flights and Flight Passes Cash Back Company Spend Earning Potential 2% $25,000 - $150,000 From $500 - $3,000 3% $150,001 - $300,000 From $4,500 - $9,000 4% $300,001 - $500,000 From $12,000 - $20,000 5 STANDARD CORPORATE REWARDS THRESHOLDS COMPANY EXPENSE THRESHOLD* REWARDS $20,000 - $150,000 $150,001 - $300,000 $300,001 - $500,000 Discount on Air Canada and Lufthansa Group flights** 2% 4% 5% Preferred Seat Selection Discount 10% Prepaid Maple Leaf ™ Lounge Up to $5 for North America/Up to 8% for Sun and International Access Discount destinations On My Way ™ Discount Up to $10 eUpgrade Credits 10 Credits 20 Credits 30 Credits Anniversary Rewards*** Complimentary Preferred Seat Selection 5 Credits 8 Credits 10 Credits Maple Leaf ™ Club 5% 8% 10% Membership Discount Complimentary Maple Leaf ™ 1 2 3 Club Canada Membership * Dollar amounts represent flown revenue on bookings made in Corporate Rewards ** Discounts not applicable on Tango fares or Flight Pass bookings ***Anniversary rewards to be provided every 12 months after initial enrollment date and are based on flown revenue on bookings done in Corporate Rewards in the previous year NEW! LUFTHANSA GROUP • Discounts on LHG flights apply to bookings for Point of Sale Canada and Point of Origins of Europe, Middle East, Africa and Canada • Eligible fare families include Flex, Premium Economy (lowest), Premium Economy (flexible), Latitude, Business Class (lowest except for P class), Business Class (flexible) and First Class* Marketing Operating Carrier Special instructions Carrier Air Canada (AC) *LH regional Operated is applicable Lufthansa (LH) on LH marketed flights only Air Canada, Lufthansa Regional*: (Lufthansa regional are: CL, EN, EW, Lufthansa City Line (CL) IQ) Lufthansa Austrian Air Dolomiti (EN) Eurowings (EW) Airlines, SWISS, Germanwings (4U) **VO Operated (Tyrolean Airways) is Brussels Airlines Austrian Airlines (OS) applicable on OS Marketed flights SWISS (LX) only Brussels Airlines (SN) Tyrolean Airways (VO)** For Russia, discount only applies for POO Canada * First Class discounts only applicable on the Lufthansa Group flights where offered NEW! MORE AIRLINES ADDED Fly with even more flexibility with Air Canada Corporate Rewards program Effective immediately, customers enrolled in the Air Canada Corporate Rewards program can take advantage of flight discounts* offered on select Air Canada marketed flights operated by: ® ® United Airlines and United Express ® All Nippon Airways ® Air New Zealand ® Avianca and Avianca Brazil This is in addition to the discounts currently offered on flights marketed and operated by Air Canada** and select Lufthansa Group airlines. These offers can be found when booking your customers' business travel through the Air Canada Corporate Rewards program. Learn more. Terms and conditions apply. More details on the program changes and what they mean for your customers account are available on the Air Canada Corporate Rewards page. *The discount depends on your company's threshold level at time of booking. **Flights operated by Air Canada including flights operated by Air Canada Express™ and Air Canada Rouge™. http://www.aircanada.com/en/business/rewards/corporate_rewards.html WELCOME OFFER Added Value Type Percentage/ Method of Distribution Quantity One-time flight booking discount 15% To be claimed within the first 3 months after enrollment Maple Leaf Lounge Pass 1 Corporate Rewards Site Pre-paid onboard café vouchers 5 Corporate Rewards Site Maple Leaf Club Membership Up to 10% www.airclublounge.com Discount Terms & Conditions can be found here: http://www.aircanada.com/en/business/rewards/offers/welcome/ Nov. 04, 2014 Preferred Carrier Proposal 9 EXCLUSIVE OFFER FOR PREMIUM BRANDS LIMITED OPERATING PARTNERSHIP Based on Premium Brands’ current travel profile and as recognition for your loyalty to Air Canada we offer you the following discount levels, applicable immediately * *Please allow 5 business days for offer to be loaded Markets and Services Discounts and Incentives Domestic Markets 4% Transborder Markets 4% International Markets 4% eUpgrade Credits 20 •Discounts applicable at time of ticketing •This offer is valid for 30 days upon receipt •Discounts and benefits following the first 12 months are automatically assessed by the system according to the threshold grid and are based on flown revenue for bookings done through Corporate Rewards ACCR PROPOSAL DETAILS • Program Term: 1 Year, annual review and renewal. Subsequent year discount and review based on spend level of year 1. • Spend Review done at 6 months to review spend level and adjust discount level if applicable. • Start Date: From acceptance of offer (Allow 5 business days for offer to be loaded. The discounts applicable on your ticket purchases are applied automatically at the time of booking.) • Point of Sale: Canada / Point of Origin: Canada • Flight discounts are available on Air Canada, Air Canada Express, Air Canada Rouge, and Lufthansa Group. • Discounts are available for One-Way, Round-Trip and Multi-City itineraries. • Air Canada Tango fares and codeshare flights (other than LH Group) are counted in volume spend when booked through ACCR Program. Flight Pass purchases are included in spend volume. WHAT’S NEW? 12 AIR CANADA NETWORK • Air Canada is Canada's largest domestic and international airline serving more than 200 airports on six continents. FLEET AIR CANADA AIR CANADA EXPRESS AIR CANADA ROUGE Operating Operating Operating Boeing 787-8 (788) 8 Boeing 787-9 (789) 13 Boeing 777-300ER (77W) 19 Boeing 777-200LR (77L) 6 Boeing 767-300ER (763) 15 19 Airbus A330-300 (333) 8 Airbus A321-200 (321) 15 5 Airbus A320-200 (320) 42 Airbus A319-100 (319) 18 20 Embraer 190 (E90) 25 Embraer 175 (E75) * 20 Bombardier CRJ100/200 (CRJ) † 27 Bombardier CRJ705 (CRA) † 16 Bombardier DASH 8-100 (DH1) † 21 Bombardier DASH 8-300 (DH3) † 26 Bombardier DASH 8-400 (DH4) * † 44 Beechcraft 1900D (BEH) ° 17 . Air Canada has firm orders for 61 Boeing 737 MAX-8 aircraft, of which 16 aircraft are expected to be delivered by 2018 † Operated by Sky Regional * Operated by Jazz The table provides the number of aircraft in Air Canada’s operating fleet as of August 2016. ° Operated by Air Georgian and EVAS NEW ROUTES 15 NEW ROUTES FOR SUMMER 2017 Air Canada circles the world adding six new non stop destinations to its expanding international network, starting for summer 2017: • Toronto to Mumbai • Toronto to Berlin • Montreal to Algiers* • Montreal to Marseille • Vancouver to Taipei * • Vancouver to Nagoya *Subject to Government approval 16 VANCOUVER-DELHI • Service starts October 20, 2016 FLIGHT # FROM TO DEPART ARRIVAL DAYS OF WEEK AC72 YVR DEL 21:40 01:20 +2 days Tuesday/Thursday/Saturday AC73 DEL YVR 06:30 06:55 Monday/Thursday/Saturday 17 MONTREAL-PUERTO VALLARTA • Seasonal service starts November 18, 2016 • Operated by Air Canada Rouge FLIGHT # FROM TO DEPART ARRIVAL DAYS OF WEEK AC1842 YUL PVR 07:40 12:32 Monday/Wednesday/Friday AC1843 PVR YUL 13:50 19:41 Monday/Wednesday/Friday 18 TORONTO-PALM SPRINGS • Seasonal service starts December 14, 2016 • Operated by Air Canada Rouge FLIGHT # FROM TO DEPART ARRIVAL DAYS OF WEEK AC1827 YYZ PSP 09:15 11:26 Wednesday/Saturday/Sunday AC1826 PSP YYZ 12:15 19:30 Wednesday/Saturday/Sunday 19 TORONTO-PORT OF SPAIN • Seasonal service starts December 21, 2016 • Operated by Air Canada Rouge FLIGHT # FROM TO DEPART ARRIVAL DAYS OF WEEK AC1880 YYZ POS 9:00 15:25 Wednesday/Friday AC1881 POS YYZ 16:45 21:35 Wednesday/Friday 20 MONTREAL-SAN JOSÉ, COSTA RICA • Seasonal service starts December 22, 2016 • Operated by Air Canada Rouge FLIGHT # FROM TO DEPART ARRIVAL DAYS OF WEEK AC1844 YUL SJO 7:40 12:14 Thursday/Sunday AC1845 SJO YUL 13:35 19:47 Thursday/Sunday 21 YEAR-ROUND SERVICE • Hamilton-Montreal • Toronto-Seoul • Montreal-Lyon • Toronto-Delhi • Vancouver-Brisbane ON BOARD 23 INTERNATIONAL BUSINESS CLASS • Fully lie-flat seat . Up to 600 hours of on-demand movies, TV & satellite radio . In-seat laptop and USB ports PREMIUM ECONOMY CLASS • Dedicated cabin . 7 inches more legroom . Wider seat with more recline . USB port for charging INTERNATIONAL ECONOMY CLASS . Single-pin audio jack for your own headset or free headphones . A USB port for charging • Complimentary wine, spirits and meals . Hours of in-seat entertainment NORTH AMERICA & CARIBBEAN BUSINESS CLASS . Priority Check-in . Priority boarding . Maple Leaf Lounge access • Individual power supply for electronic devices .