2% Reward: Executive Members enjoy an annual 2% Reward (the “Reward”) on certain Costco purchases as described below.

The 2% Reward is based on the annual Costco Wholesale purchases (see “Calculation of Reward” below) made by the Primary and Household cardholders on the membership account. The Reward coupon is mailed to the Primary member with the annual membership renewal notice and may only be used by the Primary member toward Costco Wholesale purchases.

Costco Purchases
The Reward Program is subject to the following restrictions. Costco Wholesale reserves the right at its discretion to discontinue or change the Reward Program at any time or to disqualify or cancel members’ participation. A member must be an active, paid Executive Member at the time the Reward is earned and issued in order to receive the annual 2% Reward. Only purchases made by the Primary and Household cardholders are used to calculate the Reward.

Calculation of Reward
The Reward is approximately 2% of pre-tax purchases of most merchandise including Costco Travel,** and will be calculated on purchases by Canadian residents of merchandise through the front-end registers at Costco Wholesale warehouses in Canada and the United States and online at Costco.ca. Rewards will not be calculated: (i) on purchases of cigarettes or other tobacco-related products; (ii) on purchases that are not recorded through Costco Wholesale’s front-end registers, such as services, purchases at Costco Wholesale’s gas stations, food courts, optical centres (Quebec only), and pharmacies; (iii) on membership fees; (iv) on miscellaneous fees, deposits and taxes, including applicable sales tax and goods and services tax; (v) on purchases of services, including auto and other services; (vi) on purchases where prohibited by legal or regulatory restrictions; (vii) on certain other categories as determined from time to time at Costco Wholesale’s sole discretion; or (viii) on purchases made by anyone other than the Executive Membership account’s Primary and Household cardholders. Costco Wholesale warehouses outside Canada can provide a list of exclusions specific to those locations. The period of calculation will run approximately from the date of the member’s paid enrollment or upgrade to Executive Membership through the date approximately three months prior to the member’s renewal date. Purchases from the last three months will be added to the following year’s Reward calculation. Calculation of a Reward is capped at, and will not exceed, $1,250 for any 12-month period. Executive Members who downgrade to Gold Star or Business status or cancel their membership and receive a refund of their membership fees will not receive a Reward.

Use of Reward
Reward coupons will be mailed with membership renewal notices. Reward coupons may be redeemed by the Primary member toward purchases of most merchandise through the front-end registers at Costco Wholesale warehouses throughout Canada only. Reward coupon may not be redeemed for cash. Reward coupons may be used toward purchases of merchandise only. Reward coupons may not be used: (i) toward purchases of certain merchandise such as cigarettes or other tobacco-related products; (ii) toward purchases that are not recorded through Costco Wholesale’s front-end registers, such as purchases at Costco Wholesale’s gas stations, food courts, optical centres (Quebec only), pharmacies and online at Costco.ca and Costcobusinesscentre.ca; (iii) toward purchases of services, including travel, auto and other services; (iv) toward purchases where prohibited by legal or regulatory restrictions; or (v) toward certain other purchases as determined from time to time at Costco Wholesale’s discretion. Reward coupons will not be replaced if lost or stolen. A complete list of products and services that cannot be purchased with Reward coupons is available on Costco.ca and at the Membership Counter in each of our warehouses.

** Items that fall into the following categories are not eligible for the 2% Reward. In all provinces:

• prescription drugs
• all tobacco products (including: cigarette paper, lighters, matches and tubes)
• all food court items
• all bottle deposits and refunds
• all taxes and levies
• all Costco Services
• eye examinations
• tire disposal fees (where applicable)
• tire mounting and balancing, and stud installation fees
• gift certificates and Costco Shop Cards
• membership fees
• oil disposal fees (where applicable)
• home delivery charges
• administration fees
• gasoline
• charitable donations
• third party insurance payments
• postage stamps
• environmental fees, deposits or levies
• other items, products and services specified as exclusions from time to time
• all liquid milk and cream items (e.g., 1%, 2%, homogenized and skim milk, chocolate milk, light cream, cream blends, coffee cream, whipping cream, eggnog, buttermilk, concentrated milk, etc. in the provinces of Quebec and Nova Scotia only)

Additional exclusions in the province of Quebec:

• all pharmacy items (including analgesics, cough and cold medication, allergy medication, eye care products, antacids, condoms, nicotine replacement therapies, vitamins, minerals, supplements, insulin, etc.)
• all optical centre items and services (e.g., eyeglasses, contact lenses, etc.)

A complete list of exclusions is also available at the Membership Counter in each warehouse.