The Context

Members of the Board of Directors of Canada Post are regularly called upon to travel and incur hospitality expenses to attend various meetings and otherwise be of service to the Corporation. Canada Post has a comprehensive Corporate Travel Policy for its employees and the purpose of this Board of Directors Travel and Hospitality Expenses Policy is to tailor the more general and exhaustive Corporate Travel Policy to the requirements of the Board of Directors.

The Policy

Members of the Canada Post Board of Directors are entitled to be paid reasonable travel and hospitality expenses incurred in connection with service on the Board. This Board of Directors Travel and Hospitality Expenses Policy is intended to compliment the more detailed Corporate Travel Policy.

Travel

In most cases, the office of the Corporate Secretary using Canada Post’s designated travel agency will arrange travel. Exceptionally, Board members will arrange their own travel also using Canada Post’s designated travel agency. Air travel may be booked “Business” or “Executive” class, if available, otherwise only “Economy” fare will be reimbursed. “First Class” air travel requires the prior approval of the Chairman of the Board.

Meals

In many cases, meals taken in connection with service on the Board will be paid directly by the office of the Corporate Secretary; otherwise the Board members will be reimbursed expenses in accordance to actual and reasonable costs.

Hotels

Canada Post’s designated travel agent can recommend hotels where the Corporation has negotiated corporate rates. Other than in exceptional circumstances, which would include lack of availability, Board members should only stay in hotels with which the Corporation has negotiated a corporate rate. Board members may book standard rooms or rooms on the “executive floor”. Upgrades to suites, unless at no additional cost to the Corporation, require the prior approval of the Chairman of the Board. In the case of the Chairman of the Board this will require the approval of the Chair of the Audit Committee.

All Others

Car rentals, rail travel and miscellaneous expenses will be reimbursed in conformity with Canada Post’s general Travel Policy.

Expense Claims

All expense claims, together with original supporting receipts, may be presented to the office of the Corporate Secretary for processing. The Chairman of the Board will approve all Board members’ expense submissions in accordance with this Policy. The Chair of the Audit Committee will approve the expenses of the Chairman of the Board.

Canada Post’s Internal Audit will audit compliance with these guidelines, including the validation process relating to the “reasonableness” of incurred expenses.