Redacted Version AMENDED AND RESTATED CAPACITY PURCHASE AGREEMENT between AIR CANADA and JAZZ AVIATION LP Redacted Version TABLE OF CONTENTS ARTICLE I. DEFINITIONS ........................................................................................................................... 1 SECTION 1.01 DEFINITIONS ................................................................................................................................ 1 SECTION 1.02 SCHEDULES .................................................................................................................................. 1 SECTION 1.03 JIVE AVIATION LP....................................................................................................................... 3 ARTICLE II. OBLIGATIONS OF JAZZ ........................................................................................................ 3 SECTION 2.01 JAZZ OBLIGATIONS ..................................................................................................................... 3 SECTION 2.02 PROVISION OF COVERED AIRCRAFT ........................................................................................... 3 SECTION 2.03 CONSTRAINTS ON THE OPERATION OF THE COVERED AIRCRAFT ............................................ 4 SECTION 2.04 SUBSTITUTE AIRCRAFT ............................................................................................................... 4 SECTION 2.05 AIRCRAFT AIRWORTHINESS ....................................................................................................... 4 SECTION 2.06 FLEET SIZE AND RELATED MATTERS ......................................................................................... 4 SECTION 2.07 OPERATIONS, PERSONNEL, DISPATCH CONTROL AND CREW BASES ........................................ 4 SECTION 2.08 REGULATORY CERTIFICATION ................................................................................................... 4 SECTION 2.09 USE OF DESIGNATOR ................................................................................................................... 4 SECTION 2.10 IDENTIFICATION .......................................................................................................................... 4 SECTION 2.11 QUALITY OF SERVICE .................................................................................................................. 5 SECTION 2.12 SIGNAGE....................................................................................................................................... 5 SECTION 2.13 CUSTOMER RELATIONS ............................................................................................................... 5 SECTION 2.14 TICKETING SERVICES AND TICKETING PROCEDURES ............................................................... 5 SECTION 2.15 REPORTING OBLIGATIONS .......................................................................................................... 5 SECTION 2.16 PERFORMANCE INCENTIVE TARGETS AND CORRECTIVE ACTION PLANS ................................ 6 SECTION 2.17 AIRCRAFT SERVICES ................................................................................................................... 6 SECTION 2.18 [SUPPLIER IDENTITY OMITTED] LICENSE ................................................................................... 6 ARTICLE III. OBLIGATIONS OF AIR CANADA ........................................................................................ 6 SECTION 3.01 AIR CANADA OBLIGATIONS ........................................................................................................ 6 SECTION 3.02 ROUTING OF SCHEDULED FLIGHTS ............................................................................................ 6 SECTION 3.03 FUEL ............................................................................................................................................. 6 SECTION 3.04 DE-ICING AND GLYCOL ............................................................................................................... 6 SECTION 3.05 SEAT INVENTORY MANAGEMENT ............................................................................................... 7 SECTION 3.06 PASSENGER FARES ...................................................................................................................... 7 SECTION 3.07 IN-FLIGHT SUPPLIES .................................................................................................................... 7 SECTION 3.08 CARGO SERVICE .......................................................................................................................... 7 SECTION 3.09 SCHEDULES AND TIMETABLES .................................................................................................... 7 SECTION 3.10 FACILITIES. .................................................................................................................................. 7 SECTION 3.11 AIR CANADA EQUIPMENT ........................................................................................................... 9 SECTION 3.12 MARKETING ................................................................................................................................. 9 SECTION 3.13 COMMUNITY RELATIONS ............................................................................................................ 9 SECTION 3.14 TRAINING ..................................................................................................................................... 9 SECTION 3.15 SALES AND PRODUCT DISTRIBUTION .......................................................................................... 9 SECTION 3.16 GROUND HANDLING .................................................................................................................... 9 SECTION 3.17 IT SYSTEMS ............................................................................................................................... 10 SECTION 3.18 CODE SHARING .......................................................................................................................... 10 SECTION 3.19 EMPLOYEE TRAVEL .................................................................................................................. 10 SECTION 3.20 IN-FLIGHT ENTERTAINMENT SYSTEMS .................................................................................... 10 SECTION 3.21 RETURN OF COVERED AIRCRAFT ............................................................................................. 10 ARTICLE IV. OPERATING PLANS, SCHEDULING AND ANCILLARY ARRANGEMENTS ........... 11 SECTION 4.01 OPERATING PLANS AND SCHEDULES. ....................................................................................... 11 SECTION 4.02 LONG RANGE FLEET PLAN ....................................................................................................... 12 SECTION 4.03 AIRCRAFT OWNERSHIP AND LEASING ...................................................................................... 14 - ii - Redacted Version SECTION 4.04 GUIDELINE DOCUMENT ............................................................................................................. 14 SECTION 4.05 COMPLIANCE WITH GOVERNMENTAL REGULATIONS ............................................................. 14 SECTION 4.06 MOVEMENT OF COMPANY MATERIAL ..................................................................................... 15 SECTION 4.07 BULK PURCHASES ...................................................................................................................... 15 SECTION 4.08 CONSORTIUMS AND AIRPORT CONSULTATIVE COMMITTEES REPRESENTATION .................. 15 SECTION 4.09 AIR CANADA LABOUR AGREEMENTS ....................................................................................... 15 SECTION 4.10 JAZZ'S LABOUR AGREEMENTS ................................................................................................. 15 SECTION 4.11 PILOT MOBILITY ARRANGEMENT ............................................................................................ 16 ARTICLE V. REVENUES AND PAYMENTS ............................................................................................. 16 SECTION 5.01 REVENUES .................................................................................................................................. 16 SECTION 5.02 JAZZ'S FEES ............................................................................................................................... 16 SECTION 5.03 BLOCK HOUR PAYMENT ........................................................................................................... 17 SECTION 5.04 FLIGHT HOUR PAYMENT........................................................................................................... 17 SECTION 5.05 CYCLE PAYMENT ....................................................................................................................... 17 SECTION 5.06 PASSENGER PAYMENT ............................................................................................................... 17 SECTION 5.07 AIRCRAFT OWNERSHIP PAYMENT AND PRE-ACTIVATION OWNERSHIP PAYMENT ............... 17 SECTION 5.08 FIXED COST PAYMENT .............................................................................................................. 17 SECTION 5.09 MARKETING AND COMMERCIAL CANCELLATION PAYMENT .................................................. 17 SECTION 5.10 WEATHER AND ATC CANCELLATION PAYMENT ....................................................................