Agent Reporting Agreement
(ARA)
3000 Wilson Blvd., Suite 300
Arlington, VA 22201
703.816.8000
www.arccorp.com
AgentReportingAgreement
PartI:ScopeofAgreement......................................................................................................................................................3
1.
ScopeofAgreement................................................................................................................................................3
2.
ExclusionstoScopeofAgreement............................................................................................................................3
3.
AgentAcknowledgements........................................................................................................................................4
4.
AmendmentstoThisAgreement..............................................................................................................................4
5.
ConcurrencewithFutureAmendmentstoThisAgreement.....................................................................................4
6.
TerminationofThisAgreement................................................................................................................................4
PartII:AgentOperatingRequirements...................................................................................................................................5
7.
AgentComplianceRequirements.............................................................................................................................5
8.
RequirementsforRemainingontheARCAgencyList..............................................................................................5
9.
GroundsforRemovalofAgentfromARCAgencyList..............................................................................................6
10.
CompliancewithApplicableLaws.............................................................................................................................7
11.
AgentAppointmentbyCarrier.................................................................................................................................7
12.
RetentionandInspectionofAgentRecords.............................................................................................................8
13.
ReviewsofBreachesbyAgent..................................................................................................................................8
14.
ARCToolsandOnlineServices..................................................................................................................................9
15.
ChangeofAgentInformation...................................................................................................................................9
16.
ChangeofOwnership.............................................................................................................................................10
17.
ChangeofOwnershipDuetoDeathofAgentSoleProprietororPartner..............................................................10
18.
TemporaryClosure.................................................................................................................................................10
PartIII:TicketingandSalesReporting...................................................................................................................................11
19.
Purpose...................................................................................................................................................................11
20.
TicketingRequirements..........................................................................................................................................11
21.
ARCTrafficDocuments...........................................................................................................................................11
22.
AgentDeliveryRequirements.................................................................................................................................12
23.
DeliveryandWithdrawalofARCTrafficDocuments..............................................................................................12
24.
SubmissionofAgentSalesReport(s)......................................................................................................................12
25.
SettlementofSales.................................................................................................................................................13
26.
TransactionalDataCollectedDuringEachSalesPeriod.........................................................................................13
27.
OtherAuthorizedSettlementArrangements.........................................................................................................13
PartIV:FinancialObligations.................................................................................................................................................13
28.
Purpose...................................................................................................................................................................13
29.
AgentBankAccount................................................................................................................................................14
30.
FinancialInstrument...............................................................................................................................................14
31.
AdministrativeandApplicationFees......................................................................................................................15
Effective:November7,2016
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AgentReportingAgreement
PartV:DefaultsandAdditionalOperatingRequirements.....................................................................................................15
32.
Purpose...................................................................................................................................................................15
33.
Defaults...................................................................................................................................................................15
34.
RequirementsforAgentsSubjecttoAdditionalOperatingRequirements.............................................................17
PartVI:TravelAgentArbiter..................................................................................................................................................18
35.
Disputes..................................................................................................................................................................18
PartVII:LiabilityandWaiverofClaim...................................................................................................................................18
36.
LiabilityandWaiverofClaims.................................................................................................................................18
PartVIII:WaiverandSeverability..........................................................................................................................................20
37.
Waiver.....................................................................................................................................................................20
38.
Severability.............................................................................................................................................................20
PartIX:Definitions.................................................................................................................................................................20
Effective:November7,2016
2
AgentReportingAgreement
AgentReportingAgreement
ThepartiestothisAgentReportingAgreement(“Agreement”or“ARA”)aretheAgent,andtheAirlines
ReportingCorporation("ARC")headquarteredinArlington,VAonitsownbehalfandonbehalfofthe
CarriersthatarepartiestotheARCCarrierServicesAgreement("Carrier"or"Carriers")whichappoint
theAgentunderthisAgreement.
ThepurposeoftheAgreementistoaddressthewayinwhichAgentsreportandsettleARCTraffic
DocumentsthroughtheARC-administeredSettlementPlaninacompetitiveandefficientmanner,as
wellastooutlinetherightsandobligationsofthepartiestothisAgreement.
TermsusedthroughoutthisAgreementaredefinedinPartIXofthisAgreement.
Inconsiderationofthesestatementsandthemutualcovenantsandagreementsthatfollow,theparties
acknowledge,understand,andagree:
PartI:ScopeofAgreement
1. ThisAgreement:
1.1. BecomeseffectivebetweenARCandAgentontheeffectivedatestatedintheMemorandumof
AgreementcompletedaspartofAgent’sapplication;
1.2. IsbindingbetweenAgentandeachCarrierthatappointsAgent,andestablishesa
principal-agentrelationshipbetweenAgentandCarrier;
1.3. GovernsthetermsandconditionsunderwhichAgentisauthorizedtoissueARCTraffic
DocumentsatandthroughAgent’sLocationsintheUnitedStates;
1.4. CoversallAgentLocations,includinganythatmaybeapprovedforinclusionontheARCAgency
ListaftertheeffectivedateofthisAgreement;
1.5. Supersedesanyandallprioragreements,unlessotherwisestated,betweenAgentandany
CarrierpartytotheCarrierServicesAgreementconcerningtheissuanceofARCTraffic
Documents;and
1.6. IncorporatesthelatestversionoftheIndustryAgent’sHandbook(IAH)availableonARC’s
websiteasiffullysetforthhereinbyreference.
2. ThisAgreementdoesnot:
2.1. ExtendtothetermsandconditionsunderwhichAgentisauthorizedtoissueticketsandother
documentsthatCarriersmayprovidetoAgent;however,ifARCreceivessuchticketsanddocuments
forprocessing,AgentandCarrieragreethatthoseTransactionswillbedeemedandtreatedas
thoughtheywereissuedonARCTrafficDocumentsprovidedbyARCandwillbeprocessed,
reported,settledandadministeredinaccordancewiththetermsofthisAgreement.
2.2. ConstitutetheentirerelationshipbetweenAgentandCarriersandisspecificallylimitedtothe
termsandconditionscontainedherein.ThisAgreementdoesnot,forexample,addressfares
Effective:November7,2016
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AgentReportingAgreement
chargedbyCarriers,oranycommissions,incentives,orotherformsofremuneration,ifany,
providedbyCarrierstoAgent,asthosemattersaresolelybetweenCarriersandAgent;or
2.3. AuthorizeAgenttoadmit,accept,orreceiveserviceofsummonsoranyotherprocessonbehalf
ofCarriersorARC.
3. Agentacknowledgesandagrees:
3.1. TocomplywithandbeboundbyallinstructionsandrequirementsintheIAH;
3.2. TosupplyandreceivenoticesconsistentwiththisAgreementandSectionAoftheIAH;
3.3. Toseektomaintain,atalltimes,ethicalstandardsofbusinessinitsdealingwithitsclients,the
public,ARC,andCarriers;and
3.4. ThisAgreementwillbeconstruedinaccordancewith,andgovernedby,thelawsofthe
CommonwealthofVirginia.StateandFederalcourtsoftheCommonwealthofVirginiawillhave
personaljurisdictionoverallcollectionmattersarisingunderthisAgreement.AllTransactions
thatoccurunderthisAgreementwillbedeemedtooccurintheUnitedStates.
3.5. ARCanditsaffiliatesmayfromtimetotimereceivefundsfromAgentsand/orCarrierspursuant
tothisAgreement,includingbutnotlimitedtoanyFinancialInstrumentsrequiredhereunder,
andARCagreesonbehalfofitselfanditsaffiliates,thatARCand/oritsaffiliatesshallmanage
suchfunds(lessanyfeesdueandpayablefromtimetotimetoARCand/oritsaffiliates)during
thetermofthisAgreement.
3.6. That,iftheAgentvoluntarilyelectstousetheTASFprogrambyissuingaTASFTransactionon
anARCTrafficDocumentusingcarriercode890,theAgentwillbeboundbythelatestversion
oftheTASFAgreement.
4. AmendmentstoThisAgreement
4.1. ARCwillmakeavailabletoAgenteachfutureamendmenttothisAgreementatleast45
calendardayspriortotheamendment’seffectivedate,unlessotherwisespecified.Ifthis
Agreementissubjecttotermination,suchterminationwilloccurwithoutregardtowhetheran
amendmentaltersanyprovisionrelatedtothebasisforthetermination.
5. ConcurrencewithFutureAmendmentstoThisAgreement
5.1. Agent’sconcurrencewithfutureAmendmentsmayoccurinoneofthefollowingways:
5.1.1.SigningasubsequentMemorandumofAgreementbindingARC,Agent,andCarriers
appointingAgent,tothetermsandconditionsofthisAgreement;
5.1.2.Obtainingthroughanelectronicsignature;
5.1.3.ContinuingperformanceundertheAgreement,suchasSubmissionofSalesReport(s)or
accesstoARCTools,willconstituteAgent’sagreementtobeboundbytheamended
Agreement;or
5.1.4.ObtainingoroccurringbyanyothermeansadoptedbytheARCBoardofDirectors.
6. TerminationofThisAgreement
6.1. AgentmaysubmitwrittennoticeofvoluntaryterminationofthisAgreementatanytime.
Effective:November7,2016
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AgentReportingAgreement
6.1.1.Terminationwilltakeeffect14calendardaysafterreceiptofnoticeoronthedate
indicatedinAgent’snotice,whicheverislater,subjecttothefulfillmentbyeachofthe
partiesofallobligationsunderthisAgreement.
6.2. ARCmayterminateAgent’sAgreementaccordingtotherequirementsofthisAgreement.
6.3. Whenever,underthetermsofthisAgreement,ARCisrequiredtoremoveAgentorAgent’s
Location(s)fromtheARCAgencyList,ARCwillterminatethisAgreementwithrespecttoAgent
oraffectedLocation.
6.4. Upontermination,allunusedARCTrafficDocuments(paperformat)mustbedisposedof
accordingtoSectionBoftheIAH.ARCmaydesignatearepresentativetoremoveallARCTraffic
Documents(paperformat)fromAgent.
6.5. Upontermination,AgentmustprovideallmoniesdueandpayabletoanyCarriers,anda
completeandsatisfactoryaccounting.
6.6. UponterminationandARC’srequest,AgentmustreturntoARCallsupportingdocumentslisted
inSectionCoftheIAHthatarelessthanorequalto2yearsofageasofthedateof
termination.Untilreturnedordestroyedinasecuremanner,allsupportingdocumentation
containingpersonaldata,suchascreditcardinformation,mustbemaintainedinasecureand
confidentialmanner.
6.7. WheneverthisAgreementisterminated,ARCwillnotifyallCarriersandadvisethemofthe
reasonandtheeffectivedateofthetermination.ARCwillalsonotifySystemProvidersto
inhibitissuanceofARCTrafficDocumentsbyAgentthroughtheARCSettlementPlan.
Additionally,AgentmustceaseuseofitsARCNumber(s),unlessAgentreclassifiestoanARC
VerifiedTravelConsultant.
6.8. UponterminationofthisAgreement,intheeventAgentfailstofulfillitsobligationstoSubmit
allSalesReports,AgentauthorizesARCtoSubmittheSalesReportsthathavenotpreviously
beenSubmittedandtodraftAgent’sdesignatedbankaccountfortheamountsowedforsuch
SalesReports.AgentwillindemnifyandholdharmlessARC;ARC’sofficers,employees,and
representatives;andCarriersfromalldamages,losses,orclaimsresultingfromARC’s
SubmissionoftheSalesReportsunderthetermsofthisSection.
6.9. ARCwillbeconsideredarealpartyininterestinanycauseofaction,suit,orarbitrationto
enforcethetermsofthisAgreement,includingthosebroughtbyARCaftertheterminationof
thisAgreementtocollectamountsAgentowestoCarriersorARC.
PartII:AgentOperatingRequirements
7. AgentmustelectronicallyconfirmcompliancewithAccreditation,eligibility,andretention
requirementsofthisAgreement,including,butnotlimitedto,ownershipstatusandotherpersonnel
requirements,ataminimumonanannualbasisasdeterminedbyARC.
8. RequirementsforRemainingontheARCAgencyList
8.1. Purpose:TheARCAgencyListincludesinformationoneachAgentandLocation,andisusedto
identifyEntitiesandlocationsapprovedbyARC.
Effective:November7,2016
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AgentReportingAgreement
8.2. IfAgentwishestohaveaplaceofbusinessincludedasaLocationontheARCAgencyList,Agent
mustsubmitanapplicationintheformrequiredbyARC.Carrierswillbenotifiedofthe
applicationandthestatus.
8.3. Inordertobeacceptedonto,andremainontheARCAgencyList,Agentmustmeetallofthe
followingrequirements:
8.3.1.AgentmustsubmitamateriallyaccurateapplicationforinclusionontheARCAgencyList,
changestoAgent’sstatusorlistingontheARCAgencyList,orinanyattachmentstothose
applications.
8.3.2.Anypersonthatisinvolvedintheday-to-dayoperationsoftheagencyandhasaccessto
moniesfromservicesissuedonARCTrafficDocumentsmustbeaU.S.citizen,U.S.
national,oranalienauthorizedtoworkintheUnitedStates.
8.3.3.Agentislegallyauthorizedandregistered,accordingtofederal,state,andlocal
requirementstoconductbusinessintheUnitedStates.
8.3.4.Agent'sLocationmusthavethelicensesrequiredbythejurisdictioninwhichitislocated.
Requiredlicensesinclude,butarenotlimitedto,anyandalllicensesmandatedbyfederal,
state,orlocalauthority,whichenableAgenttolawfullyconductbusinessateachofits
Locations.
8.3.5.ThenameofAgentisnotthesameas,ormisleadinglysimilarto,aCarrier’snameunless
authorizedbytheCarriertodoso.
8.3.6.Agentmustdesignateandmaintainthefollowingroles,whichmaybefilledbythesameor
differentindividuals:
8.3.6.1. ManagementQualifierwhois:(i)Agentorafull-timeemployeeofAgent;and(ii)is
responsiblefortheoperationsofAgentandAgent’sLocation(s);
8.3.6.2. ARCSpecialistwhohaspassedtheARCSpecialistexamination,andmaintainsthe
requirementsoftheARCSpecialistprogram;[Note:TheCASbecamemandatoryfor
allnewAgents,aswellasnewbranchlocations(includingon-sites),andTypeIIandV
ownershipchanges,seekingARCapprovalonorafterJuly1,1999.TheARCSpecialist
ProgramreplacedtheCertifiedARCSpecialist(CAS)ProgramonSeptember30,2005,
andpersonsholdingavalidCAScertificateatthattimeweretransitionedintothe
ARCSpecialistProgramanddonothavetosuccessfullycompletetheARCSpecialist
examinationuntilthecurrentCAScertificateexpires.]
8.3.6.3. DocumentRetrievalService(DRS)SecurityManagerwhowillperformadministrative
functionsforAgent’sDRSusersinaccordancewithinstructionsprovidedbyARC;and
8.3.6.4. MyARCPrimaryAdministratorwhowillperformadministrativefunctionsforAgent’s
MyARCusersincludingbutnotlimitedtocreatingandterminatingindividualMy
ARCuseraccounts,inaccordancewithinstructionsprovidedbyARC.
8.3.7.AgentmustcomplywiththeFinancialObligationrequirementswithinPartIVofthis
AgreementandSectionDoftheIAH.
8.3.8.AgentmustprovideanOperationalE-mailAddress.
9. GroundsforRemovalofAgentfromARCAgencyList
9.1. AgentisineligibleforretentionontheARCAgencyListif:
Effective:November7,2016
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AgentReportingAgreement
9.1.1.AgentfailstomeettherequirementsstatedinSubsection8.3ofthisAgreement,including
materialmisrepresentationorinaccuracyinanyapplication;or
9.1.2.ARChasreasontobelievethatAgent;anyEntityholdingafinancialorownershipinterest
inAgent;oranyofficer,director,employee,orManagementQualifierhashadanyofthe
following:
9.1.2.1. Financialinterestin,oraffiliationwith,anyAgentpreviouslyremovedfromtheARC
AgencyList;
9.1.2.2. Financialinterestin,oraffiliationwith,anyAgentpresentlydeclaredindefaultunder
theprovisionsofSection33ofthisAgreement;or
9.1.2.3. Felonyconvictionormisdemeanorrelatedtofinancialactivitiesorcomputerfraud,
orhasbeenfoundbyacourtofcompetentjurisdictiontohavecommittedabreach
offiduciarydutyinvolvingtheuseoffundsofothers.
9.2. TheprovisionsforineligibilityinSection9.1maybewaivedif,basedoninvestigationofall
informationandfacts,ARCdeterminesthatAgentcanbereliedontoadheretothetermsof
thisAgreement.Iftheconductinvokingthisprovisionoccurredmorethan7yearspriortothe
filingofacomplaintwiththeArbiter,therewillbeapresumptionAgentcanberelieduponto
adheretothetermsofthisAgreement.
10. CompliancewithApplicableLaws
10.1. AgentmustcomplywithallapplicableU.S.,international,andlocallaws.
10.2. Incollecting,processing,andtransmittinganypersonaldata,suchascreditcardinformation,
Agentmust:
10.2.1. Treatthedatainasecureandconfidentialmanner,disclosingitonlytothoseEntities
Agentislawfullyboundtodoso;and
10.2.2. ConsenttoaninspectionbyARC,asdescribedinSubsection12.3ofthisAgreement,in
theeventofadatasecuritybreach.
10.3. Ifrequiredbyapplicabledataprotectionlaws,Agentwilldeliveranoticetotheclientdisclosing
allofthefollowing:
10.3.1. PersonaldatacollectedbyAgentwillbesuppliedtoARCforpurposesofcarryingoutthe
contractbetweentheclientandanyrelevantCarrier;and
10.3.2. ClientmaycontactARC’sCustomerCareCentertorequestacopyofthepersonaldata
heldbyARCandtorequestwhetherornotARCwillamend,modify,correct,ordeletethe
personaldata.
10.3.3. WebsiteaddresswhereacopyofARC’sprivacypolicymaybefound
11. AgentAppointmentbyCarrier
11.1. Purpose:Section11describestheappointmentsCarriersmaygranttoAgents.
11.2. ACarriermaygrantAgentanappointment,byeitherGeneralConcurrenceorSpecific
AppointmentasdescribedinSectionEoftheIAH,permittingAgenttoissueARCTraffic
DocumentsonbehalfoftheCarrier.
11.2.1. GeneralConcurrenceisaCarrier’sauthorizationtoARCtoappointallAccreditedAgents
ontheCarrier’sbehalf.
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Effective:November7,2016
AgentReportingAgreement
11.2.2. SpecificAppointmentisaCarrier’sspecificappointmentofanAgent(s).Agentisnot
authorizedtoissueARCTrafficDocumentswithouttheCarrier’sdirectauthority.
11.3. AgentmustcomplywithallCarrierinstructions,andmustnotmakeanyrepresentationa
Carrierhasnotpreviouslyauthorized.
11.4. AgentmustbeappointedbyaCarriertoidentifyCarrieronanysegmentofanissuedARC
TrafficDocument.
11.5. CarriermayterminateAgent’sappointmentatanytimewithwrittennotice.ARCwillprovide
noticetoSystemProviderstoinhibitissuanceofARCTrafficDocumentsonthatCarrierupon
terminationbytheCarrierofanAgent’s(specificorgeneral)appointment.
11.6. IfAgentfailstopayaDebitMemosentbyCarrier,orisindefaulttoCarrierunderthis
Agreement,excludingliabilityforstolenARCTrafficDocuments,Carriermayterminateits
appointmentofAgent.
12. RetentionandInspectionofAgentRecords
12.1. AgentmustretaincopiesofthedocumentslistedinSectionCoftheIAHforaperiodofatleast
2yearsfromSubmissionDeadlineforthosedocuments.
12.2. AgentacknowledgesandagreesthatARCanditsdesigneeshavetherighttoinspectAgent’s
recordstoensurecompliancewiththetermsofthisAgreement.
12.3. Agentwillbeapprisedofthepurposeoroccasionforaninspection,andwillbeobligatedto
provideonlythosedocumentsmaterialandrelevanttotheexamination,andthatare
requestedbytheauthorizedrepresentative.ARCwillprovideacopyofawrittenreport
preparedbytheARCrepresentativewhohascompletedaninspectionofAgent’sbooksand
records.
12.4. Atanytime,aCarriermayexamineAgent'srecordsconcerningARCTrafficDocumentsissued
byAgentonthatCarrier.
13. ReviewsofBreachesbyAgent
13.1. InsituationswhereitappearstoARCthattheremaybeorhasbeenfraudulentconductonthe
partofAgent(suchasfalsificationofARCTrafficDocumentsandsalesreports,misuseofthe
IARsystem,aswellasthoseactivitiesdescribedinSectionFoftheIAH),andthereisaclear
andpresentdangerofsubstantiallosstoARCorCarriers,ARCmay:
13.1.1. ImmediatelyremoveAgent’spaper-formatARCTrafficDocuments;
13.1.2. NotifyCarriers;or
13.1.3. NotifySystemProviderstoinhibittheissuanceofARCTrafficDocuments,inpaperand
electronicformat,byallofAgent’sLocationsandallAgentsunderCommonControlwith
Agent.
13.2. ForanyactionstakenbyARCunderSection13ofthisAgreement,Agenthastherighttoappeal
totheArbiteronanexpeditedbasisusingproceduresestablishedbytheArbiter.ARCwill
terminateAgent’sAgreementwithoutfurthernoticeifallofthefollowingactionsdonotoccur
within10calendardaysafterthedateofARC’sdemandnotificationtoAgent:
13.2.1. ArbiterhasreceivedanappealfromAgent;
13.2.2. ARChasreceivedallARCTrafficDocuments(paperformat)entrustedtoAgent;and
Effective:November7,2016
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AgentReportingAgreement
13.2.3. ARChasreceivedfromAgenttheoriginalofaproperlyexecuted“PersonalGuarantyof
PaymentandPerformance”foundinSectionGoftheIAH.
13.3. UponterminationofAgent’sAgreementunderthisSection,ARCwilltakeactionasdirectedin
Subsections6.7and6.8ofthisAgreement.
14. ARCToolsandOnlineServices
14.1. ARCprovidesvariousonlineservicesthroughwhichAgentSubmitsorreviewsTransactional
DataorotherwisecommunicatesortransactsbusinesswithARCandCarriers,includingthe
MyARCwebportal,InteractiveAgentReporting(IAR),InternetSalesSummaries,Agent’s
Choice,MemoManager,AccreditationToolandDocumentRetrievalService(collectively
referredtoas“ARCTools”or“Tools”).Agent’suseofandaccesstoARCToolsaresubjecttothe
termsofthisAgreement,includingSectionHoftheIAH,andtheTermsofUseforeachTool,
whichareincorporatedbyreferenceinthisAgreement.
14.1.1. Agentacknowledgesandagreesthatanycommunicationorbusinesstransactionwith
ARCthroughanARCTool(e.g.,anapplication,formorrequest)byanyindividualwhohas
beengrantedaccesstotheARCToolbytheAgent’sMyARCPrimaryAdministratororTool
Administrator,willbedeemedtohavebeensubmittedandauthorizeddirectlybythe
Agent.Suchsubmissionswillhavethesameforceandeffectasiftheyweresubmitted
and/orsigned(whereapplicable)directlybyanownerorofficeroftheAgent.
15. ChangeofAgentName,PhysicalAddress,OperationalE-mail,Officer(s),orDesignatedPersonnel;
AbandonmentofLocation
15.1. Purpose:AgentmustmaintainaccurateinformationonrecordwithARC,intherequiredform
andmanner,inordertofacilitatetimelycommunicationandefficientoperations.
15.2. AgentmustnotifyARC(inwriting)ofanychangeinAgent’slegalnameatleast30calendardays
priortothechange.ThenamechangemustmeettherequirementsinSubsection8.3.5ofthis
Agreement.
15.3. AgentmustnotifyARC(inwriting)ofanyaddresschangewithin30calendardaysofthe
change.
15.3.1. ARCwillnotifyAgentifthereisreasontobelieve,basedonanyreliableevidence,that
AgenthasabandoneditsLocation(s)and/orceasedoperationswithoutpriorwritten
notice.
15.3.2. IfAgentfailstorespondwithin15daysofthedateofARC’snoticedescribedin15.3.1,
thisAgreementwillbeterminatedonthe16thdayafterthedateofthenoticeandARCwill
takeactionasdirectedinSubsections6.7and6.8.
15.4. WheneverthelegalnameoraddressofAgentchanges,Agentmust:
15.4.1. ExecuteanamendmenttotheMemorandumofAgreementreflectingAgent’snewlegal
name;and
15.4.2. ProvideaFinancialInstrument,inthecorrectamountandformrequiredbyARC,which
includesAgent'snewlegalnameandaddress;
15.5. ARCwillupdatetheARCAgencyListandnotifyCarriersofAgent’schangeofnameand/or
address.
15.6. ChangeofAgent’sOperationalE-mailAddress
Effective:November7,2016
9
AgentReportingAgreement
15.6.1. AgentmustnotifyARC(inwriting)ofanychangetoAgent’sOperationalE-mailAddress
withinonebusinessdayofthechange,accordingtoinstructionsprovidedinSectionAof
theIAH.
15.6.2. FailuretoprovideARCwithtimelynotificationofAgent’schangeofe-mailaddressdoes
notrelieveAgentofliabilityforadheringtotherequirementsofthisAgreementandthe
IAH.
15.7. ChangeofOfficer(s)orIdentityofOfficer(s)
15.7.1. AgentmustprovidewrittennoticetoARCwithin30calendardaysoftheremovalor
additionofanyofficer(s),oranyotherchangeintheidentityofitsofficers(e.g.,changein
marriedname).ThisprovisiondoesnotapplyifAgentisapubliclytradedEntity.Apublicly
tradedEntityisonewhosesharesarelistedonasecuritiesexchangeorareregularly
tradedinanover-the-countermarket.
15.8. ChangeofDesignatedPersonnel
15.8.1. AgentmustnotifyARC(inwriting)ofanychangetothedesignatedpersonnellistedin
Subsection8.3.6ofthisAgreement.
15.9. IfAgentfailstotimelynotifyARCofanychangesreferencedinthisSection15,orthechanges
donotmeettherequirementsofthisAgreement,ARCmaytakeappropriateactionconsistent
withPartVIofthisAgreement.
16. ChangeofOwnership
16.1. AgentmaynotassignortransferthisAgreementwithoutthepriorwrittenapprovalofARC.For
purposesofthisAgreement,amerger,sale,ortransferofall,orsubstantiallyall,ofAgent’s
assetswillconstituteanassignmentortransferthatrequiresARC’spriorwrittenapprovalif
thoseassetsincludeAgent’srightsandobligationsgrantedinthisagreementincluding,without
limitation,Agent’srighttoARCTrafficDocuments.SeeSectionIoftheIAHforexamplesof
typesofownershipchanges.
16.2. AgentremainsliableforallobligationstoARCandCarriersthataccruepriortoARC’sapproval
oftheownershipchangeuntilARCentersintoanAgentReportingAgreementwiththe
proposednewowner(s).ARCwillnotifyCarrierswhenanapplicationisreceivedandwhenan
applicationisapproved,withdrawn,ordisapproved.
16.3. IfARCdeterminesthatanownershipchangehasoccurredwithoutARC’swrittenapproval,ARC
maytakeappropriateactionconsistentwithPartVIofthisAgreement.
16.4. IfARCdisapprovesanapplicationforachangeofownership,theapplicantmayobtainareview
bytheArbiterofthedisapprovalinaccordancewithPartVIofthisAgreement.
17. ChangeofOwnershipDuetoDeathofAgentSoleProprietororPartner
17.1. OnnotificationofthedeathofAgentsoleproprietororpartner,ARCwilltakeactionas
describedinSectionIoftheIAH.
18. TemporaryClosure
18.1. IntheeventofasituationbeyondAgent'scontrol,suchasfire,flood,orillness,Agentmay
requesttotemporarilycloseitsLocation(s)inaccordancewithproceduresprovidedinSectionJ
oftheIAH.
Effective:November7,2016
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AgentReportingAgreement
PartIII:TicketingandSalesReporting
19. Purpose:PartIIIofthisAgreementdescribesrequirementsfortheproperandcorrectissuance,
reporting,andsettlementofARCTrafficDocuments.
20. TicketingRequirements
20.1. AgentwillusetheticketingidentificationofanyCarrierscheduledtoparticipateinthe
transportationprovidedCarrierhasauthorizedAgenttodoso.
20.2. IntheeventticketingidentificationofaCarrierscheduledtoparticipateinthetransportationis
notavailable,AgentwillusetheidentificationofanyotherARCCarrierwhohasprovided
authorizationforsuchuse.
20.3. NosegmentwillbepermittedonanyCarrierforwhichAgenthasnotreceivedprior
authorization.
20.4. Theinformationshownonanydelivereddocumentsmustbeinaccordancewiththeapplicable
rules,regulations,andinstructionsfurnishedtoAgentbyARCorbyCarriers.
21. ARCTrafficDocuments
21.1. Agentmustexercisereasonablecare,asdescribedinSectionBoftheIAH,intheissuanceor
disclosureofARCTrafficDocuments,data,ornumberstopreventtheunauthorizedissuanceor
useofsuchARCTrafficDocuments,data,ornumbers.
21.2. Reasonablecareincludeseffective,electronicchallengeandauthentication,suchasLog-in
Credentials,including,forexample,Usernames,PINandpasswordofanyuseraccessingagent
hardware,systems,oranyothersystemsorhardwarethatcanbeusedtoissueARCTraffic
Documents,data,andnumbersinanelectronicformat.
21.3. Agentmustimplementappropriatephysical,electronic,andmanagerialproceduresand
systemstopreventunauthorizedaccessto,issuance,oruseofARCTrafficDocumentsand
relatedTransactionalData.SeeSectionBoftheIAH.
21.4. AgentmustuseARCTrafficDocumentsinaccordancewiththetermsofthisAgreement.
21.5. IntheabsenceofspecificpermissionofaCarrier,
21.5.1. AgentmustprocessTransactionsissuedonARCTrafficDocumentswiththesameform
ofpaymentprovidedbytheclient.
21.5.2. AgentmustnotuseacreditcardwhichisissuedinthenameoftheAgent,orinthename
ofanyoftheAgent'spersonnel,orinthenameofanythirdparty(otherthantheclient),for
TransactionsissuedonARCTrafficDocuments.
21.6. Agentmustnotdiscloseto,orotherwisegive,anythirdpartyaclient’screditcardinformation,
exceptwhenthedisclosureisnecessaryforAgenttoperformitsobligationsunderthis
Agreement.
21.7. AgentmayrefundanyfareorchargeapplicabletoairtransportationonlyifsoldbyAgentand
forwhichAgenthasissuedanARCTrafficDocument.Agentwillissuerefund(s)onlytothe
personauthorizedtoreceivetherefund(s)andaccordingtothetariffs,rules,regulations,and
instructionsissuedbyCarriers.
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AgentReportingAgreement
21.8. UnlessgrantedexplicitauthoritybytheticketingCarrierwhoseARCTrafficDocumentistobe
issued,Agentwillnot:
21.8.1. IssueanARCTrafficDocumentinexchangeforanytrafficdocumentpreviouslyissued
byanotheragentorCarrier;or
21.8.2. IssueanARCTrafficDocumentinexchangeforatrafficdocumentpreviouslyissuedby
AgentnaminganotherCarrierastheticketingCarrier.
22. Agentmustdelivertoitsclients:
22.1. ProperandcorrectARCTrafficDocuments;and
22.2. AllsupportingdocumentationauthorizedorrequiredbyCarriers.
23. DeliveryandWithdrawalofARCTrafficDocuments
23.1. UponAgent’sproperrequestandpaymentoffees,ARCwillsupplyAgentwithpaper-format
ARCTrafficDocuments.
23.2. ThetermsgoverningAgent’ssecurityofARCTrafficDocumentsandthemannerinwhichARC
TrafficDocumentsmaybeissuedandmustbeaccountedforaresetforthunderthis
Agreement,instructionsprovidedbyARC,andinSectionBoftheIAH.
23.3. AllARCTrafficDocumentssuppliedtoAgentmustbeheldintrustforARCbyAgentuntilissued
toAgent'sclients,oruntilotherwiseaccountedfortoARCorCarriers,andmustbesurrendered
toARCupondemandpursuanttothisAgreement.
23.4. ThisAgreementdoesnotconferuponAgent,norwillAgentotherwisebedeemedtohave,any
ownershipinterestinanyARCTrafficDocuments,oranyotherTransactionalinformationor
datasuppliedtoAgentunderthisAgreement.
23.5. ARCTrafficDocuments(paperformat)suppliedforissuanceataspecifiedLocationcoveredby
thisAgreementmustnotbefilledoutorvalidatedatanyotherLocation.
23.6. Agentwillnotacceptcustodyof,ordeliver,blank,pre-validated,orpartiallywrittenARCTraffic
DocumentsnotpreviouslyassignedtoAgentunderthisAgreement.ShouldAgentbe
approachedbyanotherAgenttodistributeblank,pre-validated,orpartiallywrittenARCTraffic
Documents,ortodistributeARCTrafficDocumentsnotprovidedtoAgentthroughtheSystem
Provider(electronicformat),AgentmustimmediatelynotifytheARCFraudPrevention
Department.
24. SubmissionofAgentSalesReport(s)
24.1. AgentmustSubmititsSalesReport(s)incompliancewiththeinstructionsprovidedinthis
AgreementandSectionKoftheIAH.
24.2. AgentmustSubmittheSalesReporttoARCnolaterthantheSubmissionDeadline.
24.3. AgentmustSubmititsSalesReport(s)toARCviaIAR.
24.4. AgentwillbesubjecttotheadditionaloperatingrequirementsofSection34if,duringany12monthperiod,twoormoreofAgent'sSalesReportshavenotbeenSubmittedbythenext
businessdayafterARC’snoticetoAgentandsuchSalesReportsareultimatelySubmittedprior
totheterminationdateofthisAgreement.
24.5. Agent’sSalesReport(s)must:
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AgentReportingAgreement
24.5.1. AccountforandincludeallARCTrafficDocumentsissuedandvalidatedduringtheSales
ReportPeriod;
24.5.2. ConfirmtheaccuracyofdataincludedintheSalesReport;and
24.5.3. AuthorizeasettlementamountreflectingthemaximumamounttobedrawnbyARC
fromAgent’sdesignatedaccount.ARCwillnotdraftformorethantheauthorizedamount.
25. SettlementofSales
25.1. AgentacknowledgesandagreesthatARCwill,basedonAgent’sSubmittedSalesReport,draft
Agent’sdesignatedbankaccountfortheauthorizedamount.Nodraftshallbepresentedtothe
Agent’sdesignatedbankaccountbasedoninformationnotcontainedinAgent’sSalesReport,
exceptfordraftsforamountsstatedinthisAgreementsuchasannual,transactionor
compensatoryfees,orastheAgentmayotherwisespecificallyauthorize.Thedraftwilloccur
noearlierthanthefifthcalendardayafterthecloseoftheSalesReportPeriod.
25.2. IfAgenthasnoTransactionsinitsSalesReportduringtheSalesReportPeriod,ARCwill
automaticallySubmita“NoSales”ReportonAgent’sbehalf.
25.3. Agentacknowledgesandagreesthatitremainsfinanciallyliableandresponsibleforall
TransactionsissuedbyAgentduringeachSalesReportPeriodincludingthosenotsubmittedin
Agent’sSalesReport.
25.4. Allmoniesandcreditcardbillingdocuments,lessapplicablecommission(s),Agentcollectsfor
saleshereunderarepropertyofCarriers,andwillbeheldintrustbyAgentuntilsatisfactorily
accountedfortoCarriers.
26. TransactionalDataCollectedDuringEachSalesPeriod
26.1. AllTransactionalDatamaybereviewedbyARCorCarrieratanytimeduringoraftertheSales
ReportPeriod.
26.2. AgentacknowledgesthatallTransactionalDatamaybeusedbyCarriersandARCforprocessing
Transactionsandanyotherlawfulpurpose.
27. OtherAuthorizedSettlementArrangements
27.1. Carrierwillgivegoodfaithconsiderationtoalternativesettlementarrangements,andnothing
containedinthisAgreementprecludeseitherAgentorCarriersfromproposingthatAgent
either:
27.1.1. SettleamountsowedtoCarrierpursuanttoaVariableRemittancePlan(describedin
SectionLoftheIAH)forTransactionsAgenthasSubmittedforthatCarrier;or
27.1.2. UsethatCarrier'strafficdocuments.
27.2. Carrierrefusaltoenterintoanalternatesettlementarrangementisnot,initself,evidenceof
badfaith.
PartIV:FinancialObligations
28. Purpose:PartIVofthisAgreementdescribesthefinancialrequirementsnecessarytoensure
accurateandproperaccounting,reporting,andsettlementsoffundsbetweenARC,Agent,and
Carriers.
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AgentReportingAgreement
29. AgentBankAccount
29.1. Agentmustdesignateabankaccount,forthebenefitofARCandCarriers,forthedepositof:
29.1.1. Proceeds,heldintrust,forthesalesofairtransportationandancillaryservicesforwhich
ARCTrafficDocumentswereissued;and
29.1.2. FundsthatmayberequiredtopayanyotheramountARCisauthorizedtodraftfrom
theaccount.
29.2.
AgentmustgiveARCwrittennoticeofAgent’sintentiontochangebankaccountsat
least7businessdayspriortothebeginningoftheaffectedSalesReportPeriod.
30. FinancialInstrument
30.1. Purpose:Agent’sFinancialInstrumentisusedafterterminationoftheAgent’sARAinorderto
coverallamountsowedbyAgenttoCarriersandARCforTransactionsissuedonARCTraffic
DocumentssuppliedintrusttoAgent.Thisincludes,butisnotlimitedto,allamountsowedfor
Transactionsthathavebeenusedbutnotreportedorpaidfor;amountsowedfordishonored
drafts;andamountsowedasaresultofthelossmisapplication,theft,forgery,orunlawfuluse
ofARCTrafficDocuments,unlesstheAgenthasbeenrelievedofliabilityforsuchunderthis
Agreement.
30.2. AgentmustmaintainaFinancialInstrumentintheformandamountrequiredbyARCforthe
jointandseveralbenefitofCarriersandARC.AtnotimewilltheFinancialInstrumentbeless
than$10,000ormorethan$70,000,unlessAgenthasAssociateBranchesorbecomessubject
totheadditionaloperatingrequirementsunderSection34ofthisAgreement.
30.3. ARCwillinformAgentoftherequiredFinancialInstrumentamount90calendardayspriorto
theanniversarydateofAgent’sFinancialInstrument.Ifanadjustmentisrequired,Agentmust
complywiththenewrequirementnolaterthantheanniversarydate.
30.4. IfARCdeterminesAgenthasfailedtoadjusttheformortheamountofitsFinancialInstrument
asrequiredbythisAgreement,ARCwillapplytotheArbiterforanauthorizationto:
30.4.1. RemoveARCTrafficDocuments(paperformat),andnotifySystemProviderstoinhibit
theissuanceofARCTrafficDocumentsbyAgentandallAgentLocations;and
30.4.2. NotifyCarriersthatAgentisnolongerauthorizedtoissueARCTrafficDocuments.
30.5. Ifatanytime,ARCisnotifiedAgent'sFinancialInstrumentwillbe,oris,nolongervalid,ARCwill
notifyAgent(inwriting),andwill,ontheeffectivedateofthecancellation:
30.5.1. RemoveARCTrafficDocumentsfromAgent;and
30.5.2. NotifySystemProviderstoinhibitissuanceofARCTrafficDocumentsinpaperand
electronicformatbyAgentandallofAgent’sLocations.
30.6. UnlessAgentprovidestoARCaproperreplacementFinancialInstrumentwithin30calendar
daysafterthecancellation,ARCwillterminatethisAgreementandtakeactionasdirectedin
Subsections6.7and6.8.
30.7. ToavoidactionsunderSubsections30.4and30.5ofthisAgreement,Agentmayassigna
CertificateofDepositintheformandamountrequiredfortheFinancialInstrument.
30.7.1. TheeffectivedateandARC’sacceptanceoftheassignmentoftheCertificateofDeposit
mustbenolaterthanthedateofcancellationoftheFinancialInstrument.
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AgentReportingAgreement
30.7.2. ARCwillaccepttheassignmentofaCertificateofDepositasasubstitutefornomore
than30calendardaysfromthedateofthecancellation.
31. AdministrativeandApplicationFees
31.1. AgentagreestopayanadministrativefeetoARCforeachofAgent’sLocationstodefraya
portionofthecostsassociatedwithoperatingtheARCSettlementPlanandhalfofthecosts
associatedwithoperatingtheTravelAgentArbiterProgram,Inc.
31.2. Theadministrativefeeiscomprisedoftwoparts:anannualfixedamountforeachLocationand
afeeforTransactionsprocessedthroughtheARCSettlementPlan(ASP)foreachLocation.The
administrativefeeiscalculatedaccordingtotheformuladescribedinSectionMoftheIAH.
31.3. TheadministrativefeewillbedeterminedbytheARCBoardofDirectors.ARCwillnotifyAgent
(inwriting)oftheannualfixedamountandtheperTransactionfeeamountforthefollowing
yearbeforetheendofthecurrentcalendaryear.
31.4. AgentauthorizesARCtocollecttheadministrativefeebydraftingAgent’sdesignatedbank
account.Alternatively,AgentmustmakepaymentdirectlytoARCifrequiredbyARCnotice.
31.5. AnnualFixedAmount
31.5.1. ARCwilldraftAgent’sannualfixedamountaccordingtotheproceduresdescribedin
SectionMoftheIAH.
31.5.2. Iftheannualfixedamountisnotpaidwithin14calendardaysoftheduedate,ARCmay
removeAgentorLocationinvolvedfromtheARCAgencyList,terminatethisAgreement,
andtakeactionasdirectedinSubsections6.7and6.8ofthisAgreement.
31.6. TransactionFees
31.6.1. ARCwillcalculatethetransactionfeeanddraftthedesignatedaccountofeachLocation
onthescheduleoutlinedinSectionMoftheIAH.
31.6.2. Ifthetransactionfeeremainsunpaid14calendardaysaftertheduedateARCmay
removeAgentorLocationinvolvedfromtheARCAgencyList,terminatethisAgreement,
andtakeactionasdirectedinSubsections6.7and6.8ofthisAgreement
31.7. AgentagreestopayallfeesrelatedtoapplicationsforchangestoAgent’sstatus,suchasAgent
nameorownership.Thesefeesarerelatedtotheadministrativeexpensesforprocessingthe
applicationandupdatingARC’sdatabase.Seewww.ARCCorp.comforthecurrentapplication
andfeeinformation.
PartV:DefaultsandAdditionalOperatingRequirements
32. Purpose:PartVofthisAgreementcoversfinancialirregularitiesthatmayresultindefaultsor
additionalAgentoperatingrequirements.
33. Defaults
33.1. Section33governstheconditionsunderwhichARCmaydeemAgenttobeindefault.
33.2. DishonoredARCdraft
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AgentReportingAgreement
33.2.1. ARCwillnotifyAgentandAgent’ssuretyifadraftforpaymentofAgent’sSalesReports
isdishonored.AgentagreestowirefundstoARCtocoveranydishonoreddraftbythe
closeofthenextbusinessday.
33.2.2. AgentacknowledgesthatuponfailuretocomplywiththerequirementsinSubsection
33.2.1,ARCwilltakeactionasdirectedinSubsection33.5.
33.3. UnreportedSalesandImproperlyReportedTransactions
33.3.1. ARCwillnotifyAgentifAgenthasfailedtoincludeinitsSalesReportallARCTraffic
DocumentsissuedthroughthecloseoftheSalesReportPeriod,orhasincludedother
ImproperlyReportedTransactions.
33.3.2. UnlesstheAgentwiresfundsorprovidessupportingdocumentswithinthetimeframe
statedinARC’snotice,tocovertheUnreportedSalesand/orImproperlyReported
Transactionsand,whereaclearandpresentdangerofsubstantiallossispresent,ARCwill
takeactionasdirectedinSubsection33.5.
33.4. FailuretoSubmitSalesReports
33.4.1. IfAgenthasfailedtoSubmitaSalesReportbytheSubmissionDeadline,ARCwillnotify
Agent.
33.4.2. UnlessAgentimmediatelySubmitsitsSalesReport,ARCwilltakeactionasdirectedin
Subsection33.5.
33.5. ConsequencesofFailuretoPayforDishonoredDraft(s),UnreportedSalesand/orImproperly
ReportedTransactions,andFailuretoTimelySubmitSalesReports
33.5.1. IfanyoftheactionsinSubsections33.2,33.3,or33.4oftheARAoccur,ARCwill:
33.5.1.1. WithdrawfromtheAgent,andallAgentsandLocationsunderCommonControlwith
theAgent,allARCTrafficDocuments(paperformat);
33.5.1.2. NotifyCarriers;and
33.5.1.3. NotifySystemProviderstoinhibittheissuanceofARCTrafficDocuments(paperand
electronicformat)bysuchAgentandLocations.
33.6. CompensatoryFees
33.6.1. ARCwillassesscompensatoryfeesasdescribedinSectionMoftheIAH,andnotify
Agentoftheamountandthedateonwhichpaymentwillbedue.
33.6.2. AgentauthorizesARCtocollectthecompensatoryfeebydraftingAgent’sdesignated
bankaccount.Alternatively,AgentmustmakepaymentdirectlytoARCifrequiredbyARC
notice.
33.7. IfAgentUnabletoSatisfyDebt
33.7.1. IfAgentdoesnotSubmittherequiredSalesReport(s)orfailstomakefullpaymentofall
amountsowedtoCarriersorARC,onorbeforethe31stcalendardayafterthedateof
ARC'swrittennoticeofadefault,thisAgreementwillterminateautomaticallyandwithout
furthernotice,unlessAgentsatisfiestherequirementsoutlinedinSectionKoftheIAH.
33.7.2. InaccordancewithSectionK.5oftheIAH,eachAgenttowhomnoticeundersections
33.2,33.3or33.4hasbeensentwillberequiredtohaveexecutedonitsbehalfandfiled
withARCthe"PersonalGuarantyofPaymentandPerformance"assetforthinSectionGof
16
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AgentReportingAgreement
theIAHiftheAgent’sfinancialorreportingirregularitiesunderSection33.2,33.3and33.4
oftheARAcreateadangerofsubstantiallosstoARCand/orthecarriers.
33.8. InsufficientSettlementAuthorizations
33.8.1. IfARCdeterminesthattheamountauthorizedbyAgentislessthantheamountowedto
CarriersforTransactionsissuedduringtheSalesReportPeriod,ARCwillnotifyAgentofthe
amountdueandrequestthatAgentreauthorizeitsreport,providepaymentwithinthe
timeframestatedinARC’snotice,orauthorizeARCtodraftAgent’sbankaccountforthe
actualrequiredamount.
33.8.2. IfAgentfailstotimelypayallamountsowed,orfailstoauthorizethedraftforthe
requiredamount,ARCwilltakesuchactionasitdeemsappropriate.
34. RequirementsforAgentsSubjecttoAdditionalOperatingRequirements
34.1. AgentwillbesubjecttotherequirementsofthisSectionif,duringany12-monthperiod,anyof
thefollowingoccur:
34.1.1. TwoormoreofAgent'sdraftsforSalesReportshavebeendishonored,andarenotpaid
bythecloseofthefollowingbusinessdayafternoticefromARC;
34.1.2. TwoormoreofAgent'sSalesReportshavenotbeenSubmittedbythenextbusinessday
afternoticetoAgentfromARCandsuchSalesReportsareultimatelySubmittedpriorto
theterminationdateofthisAgreement;
34.1.3. AgenthasbeendeclaredindefaultpursuanttoSection33ofthisAgreementandthe
amountofthedefaultequalsorexceedstheamountofAgent’sFinancialInstrument;or
34.1.4. AgenthasbeendeclaredindefaultpursuanttoSection33ofthisAgreementtwoor
moretimes,regardlessoftheamountofthedefault;or
34.1.5. TwoormoreofAgent’sdraftsforSalesReportshavebeendishonoredwithinanyfour
consecutiveSalesReportPeriods(PEDs).
34.2. ASalesReportwillnotbeconsideredlateforthepurposesofSection34ifAgentprovides
evidenceoftimelySubmissionorifAgentqualifiesforanexemptionundertheconditions
statedinSectionKoftheIAH.
34.3. ARCwillnotifyAgent(inwriting)andCarriers30calendardaysinadvanceofthedatewhenthe
additionaloperatingrequirementsareeffective(effectivedate).Thenoticewillalsoinform
Agentoftheadditionaloperatingrequirementsthatmustbeaccomplishedpriortothe
effectivedatestatedinthenotice.Theserequirementswillinclude:
34.3.1. AFinancialInstrument,intheformrequiredbyARC,andinanamountnottoexceed
Agent’snetcashremittancesforthethreehighestSalesReportPeriodswithinthelast12
months.ARCreservestherighttoadjusttheamountoftheFinancialInstrumentduring
theperiodAgentissubjecttothetermsofSection34.However,innoeventwillthe
amountbelessthanAgent’scurrentFinancialInstrument;and
34.3.2. ARC’srejectionofanyapplicationtoopenadditionalLocation(s)submittedorpending
whileAgentissubjecttothisSection;and
34.3.3. Executionandprovisionofthe“PersonalGuaranty(s)ofPaymentandPerformance”as
setforthinSectionGoftheIAHwithinsevencalendardaysofthedateofARC’swritten
notice;and
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AgentReportingAgreement
34.3.4. Provisionofawrittenactionplan,inaformrequiredbyARC,toincludeforexample,
detailsofcorrectiveactiondesignedtopreventadditionalnon-complianceandschedules
forsubmissionoffinancialstatements.
34.4. RequirementsofSubsection34.3mayalsoincludetheestablishmentofanautomaticoverdraft
protectionagreement,tobeprovidedtoARCinwritingfromAgent’sbank.
34.5. IfAgentisnotincompliancewiththerequirementsofSection34.3and34.4atanytimethe
requirementsareineffect,ARCwillterminatethisAgreementwithAgentandtakeactionas
directedinSubsections6.7and6.8ofthisAgreement.
34.6. If,followingtheeffectivedateofthisSection,andAgent'scompliancewiththeprovisionsof
Subsections34.3and34.4ofthisAgreement,therearenoinstancesofdishonoreddrafts,late
reports,ordefaultswithina12-monthperiod,ARCwillremovetheadditionaloperating
requirementsofthisSectionandnotifyCarriers.
34.7. If,followingARC’snoticeconcerningtheadditionaloperatingrequirements,thereisan
additionaldishonoreddraft,latereport,ordefault,ARCwillnotifytheAgent.ARCmayalso
notifytheSystemProviderstoinhibittheissuanceofARCTrafficDocumentsbyAgentand
notifytheCarriers.Ifthespecifiedbreachiscured,SystemProviderswillbenotifiedto
reinstatetheissuanceofARCTrafficDocuments,anduponwrittennoticetoAgent,the
additionaloperatingrequirementswillbeextendedforanadditional12monthperiod.Ifthere
arenoinstancesofdishonoreddrafts,latereportsordefaultswithintheextended12-month
period,ARCwillremovetheadditionaloperatingrequirementsofthisSectionandnotify
Carriers.
34.8. AgentmayappealtotheArbiterARC'sdeterminationthatAgentissubjecttothisSection.The
appealwillbegivenexpeditedconsideration,andwhiletheappealispending,thisSectionwill
continuetoapplytoAgentunlessoruntiltheArbiterrulesinfavorofAgentorAgent's
compliancewithSubsections34.3and34.4.
PartVI:TravelAgentArbiter
35. DisputesbetweenAgentandARCmustberesolvedbytheArbiteraccordingtotherulesand
proceduresdeterminedbytheArbiter.TheArbiter’sdecisionwillbefinalandbinding.However,
neitherAgentnorARCisprohibitedfromseekingjudicialrelieftoenforcetheArbiter’sdecisionorto
compelcompliancewiththisAgreementpriortofilingofananswer,orotherresponsivepleading,in
aproceedingconcerningsuchrequirementorprohibitionbeforetheArbiter.
PartVII:LiabilityandWaiverofClaim
36. Agentacknowledgesandagreesthat:
36.1. CarrierwillindemnifyandholdharmlessAgent,andAgent’sofficersandemployees,fromall
responsibilityandliabilityforanydamage,expense,orlosstoanyperson,Entity,orthing
causedbyorarisingfromanynegligentact,omission,ormisrepresentationofCarrier;or
Carrier’srepresentatives,agents,oremployeesrelatingdirectlyorindirectlytothe
performanceofthedutiesandobligationsoftheCarrierunderthisAgreement.
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AgentReportingAgreement
36.2. AgentwillindemnifyandholdharmlessCarrierandARC;andCarrierandARCofficers,agents,
andemployeesfromallresponsibilityandliabilityforanydamage,expense,orlosstoany
person,Entity,orthingcausedbyorarisingfromanynegligentact,omission,or
misrepresentationofAgent;orAgent’srepresentatives,agents,oremployeesrelatingdirectly
orindirectlytotheperformanceofthedutiesandobligationsofAgentunderthisAgreement.
36.3. UnlessAgentisdeterminednottobeliableunderSubsection36.4,Agentwillbeliablefor(and
willindemnifyandholdharmlessCarrier;andCarrier’sofficers,agents,andemployeesfrom)
anyandalldamage,expense,orlossincurredonaccountoftheloss,misapplication,theft,
forgery,orunlawfuluseofARCTrafficDocuments(paperorelectronicformat),orother
suppliesfurnishedbyoronbehalfoftheCarriertoAgent.
36.4. Agentwillnotbeliableforresultinglosses,if,atthetimeofaproventheftorunlawfuluse,
AgentisdeterminedbyARCtohavemetallofthefollowingrequirements:
36.4.1. AgenthasbeenincompliancewiththeSecurityGuidelinesforARCTrafficDocumentsin
SectionBoftheIAH;
36.4.2. AgenthasexercisedreasonablecarefortheprotectionofARCTrafficDocuments(paper
andelectronicformat);
36.4.3. Agent,upondiscovery,immediatelyhasreportedthetheftorunlawfulusetothe
appropriatelawenforcementauthorities;and
36.4.4. AgenthaspromptlynotifiedtheARCFraudPreventionDepartment,bytelephone,fax,
ore-mail,oftheparticularsofsuchtheftorunlawfuluse.
36.5. TheexemptioninSubsection36.4doesnotapplyincaseswherelossesareduetothetheftor
unlawfuluseofARCTrafficDocumentsbyAgent,orAgent’semployeesorindependent
contractors.
36.6. UnlessAgentisrelievedofliabilitypursuanttothisSection,proceedsoftheFinancial
Instrumentwillbeappliedtoanyandalldamage,expense,orloss,onaccountoftheloss,
misapplication,theft,forgery,orunlawfuluseofARCTrafficDocuments,ARC-issuednumbers,
orothersuppliesfurnishedbyoronbehalfofCarriertoAgent.
36.7. Reasonablecare,asusedhere,includes,butisnotlimitedto,compliancewiththesafeguards
requiredinIAH,SectionB.Inmakingthedeterminationofreasonablecare,ARCmayrelyon
thefindingsoftheARCfraudinvestigators,representatives,orcooperatingsecurityofficersof
Carriers.IfARCdeterminesAgentdidnotexercisereasonablecare,ARCwillinformAgentof
thespecificdetailsinwhichAgentfailedtoexercisereasonablecare.AgentmayappealARC's
determinationtotheArbiterpursuanttoPartVIofthisAgreement.
36.7.1. IfARCfilesacomplaintwiththeArbiterallegingAgentfailedtocomplywithsafeguards
setforthinSectionB,ARCshallrelyonthefindingoftheArbiterindeterminingwhether
ornotreasonablecarewasexercisedbyAgent.
36.8. Agentexpresslywaivesanyandallclaims,causesofaction,orrightstorecoverybasedupon
libel,slander,ordefamationbyreasonofpublicationofassertedgroundsorreasonsfor
removalfromtheARCAgencyListorsuchotheractionwhichmayhavebeenrequired,orof
allegedviolationsorotherchargesforwhichreviewofAgent'seligibilityisrequested,asis
reasonablyrelatedtotheperformanceofappropriatefunctionsspecifiedforARC,itsofficers
andemployees,representatives,ortheArbiter.
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AgentReportingAgreement
36.9. IfARCuseslegalcounselto(i)enforceitsrighttorepossessARCTrafficDocuments(paper
format)becauseAgentfailedorrefusedtosurrenderthemupondemandmadepursuantto
thisAgreement,and/or(ii)otherwiseobtaincompliancebyAgentwiththeprovisionsofthis
Section,AgentshallalsobeliabletoARCforanyandallattorney’sfees,andalsoforany
additionalcostsactuallyincurredbyARCforthecollectionforcostsofthisaction,ifARC’s
actionisadjudicatedorotherwiseresolvedinARC’sfavor.IfARC’sactionisadjudicatedor
otherwiseresolvedinfavorofAgent,ARCmustreimburseAgentforallcostsincurred,andfor
thereasonablefeesofAgent’sattorneys,indefendingitselfagainstARC'saction.Theterm
"costs"asusedhereincludes,butisnotlimitedto,courtcosts,litigationbondpremiums,
privateinvestigatorfeesincurredinattemptingtolocateARCTrafficDocuments,andlocksmith
fees.
36.10. IfARCuseslegalcounseltoenforceitsrighttoinspectAgent'sbooksandrecordsbecause
Agentfailedorrefusedtopermitaninspectionupondemandmadepursuanttothis
Agreement,AgentmustreimburseARCforallcostsincurred,andforthereasonablefeesof
ARC’sattorneys,ifARC’sdemandisadjudicatedorotherwiseresolvedinARC’sfavor.IfARC’s
demandisadjudicatedorotherwiseresolvedinfavorofAgent,ARCmustreimburseAgentfor
allcostsincurred,andforthereasonablefeesofAgent’sattorneys,indefendingitselfagainst
ARC'sdemand.Theterm"costs"asusedhereincludes,butisnotlimitedto,courtcostsand
litigationbondpremiums.
36.11. AgentagreestoindemnifyandholdCarrierharmlessfromandagainstanyclaimarisingfrom
thefailureofAgenttorefundtotheauthorizedrefundpayeetheproperamountoffareor
otherchargescollected.
36.12. AgentagreesthatwheneveranARCrepresentativemustgotoanAgentorotherlocationto
removeARCTrafficDocuments,collectfundsduehereunder,etc.,Agentwillpaytheout-ofpocketspecialservicecostsincurredbyARCinconjunctionwithsuchaction.
36.13. Agentassumesliabilityforuse,misuse,orunauthorizeduseofAgent’sLog-inCredentials
suppliedbyARC,regardlessofwhethertheLog-inCredentialswerecreatedbyAgentorbyARC.
Agentwillindemnify,defend,andholdharmlessARC;ARC’sowners,directors,officers,
employees,representatives,andparticipatingCarriers,frominjuryordamagetoanyperson,
property,orEntityincluding,butnotlimitedtoAgent,resultingfromanysuchuse,misuse,or
unauthorizeduseofAgent’sLog-inCredentials.
PartVIII:WaiverandSeverability
37. Awaiverbyanypartyofanybreachordefaultbyanotherpartywillnotbeconstruedasawaiverof
anyotherbreachordefaultwhetherornotsimilarandwhetherornotoccurringbeforeorafterthe
subjectbreach.
38. IfanyprovisionofthisAgreementisheldinvalidinacourtoflaworequity,theremainingprovisions
willremaininfullforceandeffectandwillbeconstruedasiftheinvalidprovisionswerenot
includedinthisAgreement.
PartIX:Definitions
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AgentReportingAgreement
39. ForthepurposesofthisAgreement:
39.1. ACCREDITATIONmeansAgent’sapplicationandLocation(s)havebeenapprovedbyARCand
havebeenincludedontheARCAgencyList.
39.2. AGENTmeansanyEntityapprovedbyARCtoissueARCTrafficDocuments.
39.3. ARBITERmeanstheTravelAgentArbiterestablishedasanindependententity(TravelAgent
ArbiterProgramInc.)todecidedisputesbetweenARC,Agents,andapplicants.
39.4. ARCAGENCYLISTmeansthelistownedandmaintainedbyARC,whichincludes,amongother
things,thename,address,andARCnumber(s)usedtoidentifyeachLocationthathasbeen
approvedbyARC.
39.5. ARCNUMBERisARC’s8-digitidentifierforeachAgentLocation.
39.6. ARCSETTLEMENTPLAN(ASP)isthesystemthroughwhichAgentreportsandsettlesARCTraffic
DocumentsissuedonbehalfofCarriers.
39.7. ARCSPECIALISTisapersonwhohaspassed,andmaintainstherequirementsof,theARC
Specialistexamination.
39.8. ARCTRAFFICDOCUMENTmeansallindustrystandardformsanddocuments(paperand
electronic)thatARCmayprovidetoAgent,intrust,andforwhichAgentisresponsible.This
termincludesCarriers’owntrafficdocumentsprovidedtoARCforprocessingreporting,
settlementandadministrationunderthisAgreement.
39.9. CARRIERmeansanyEntitythathasexecutedtheARCCarrierServicesAgreementoris
otherwiseauthorizedbyARCtotakepartinARCprogramsasaparticipatingCarrierfor
purposesofthisAgreement.
39.10. COMMONCONTROLmeanstwoormoreAgentscontrolledbythesameEntityorEntities.
39.10.1.
CONTROLorCONTROLLEDmeansthepowerorauthoritytomanage,direct,
superintend,restrict,regulate,govern,administer,oroversee;andthetermembracesevery
formofControl,actualorlegal;directorindirect;negativeoraffirmative;individual,joint,
several,orfamily,withoutregardtothetypeornumberofinterveningorsupervening
personsinvolved.
39.11. CREDITMEMOmeansanywrittenorelectronictransmissionfromaCarriertoAgent
authorizingAgenttodeductaspecifieddollaramountfromAgent’sSalesReport.
39.12. DEBITMEMOmeansawrittenorelectronictransmissionfromaCarriertoAgentforpayment
ofanAgentobligation.
39.13. ENTITYincludes,butisnotlimitedto,asoleproprietor,corporation,partnership,association,
company,orfirm.
39.14. FINANCIALINSTRUMENTmeansbond,irrevocableletterofcreditand/oracashsecurity
deposit.
39.15. GENERALCONCURRENCEmeansaCarrier’sauthorizationtoARCtoappointallAgentsonthe
ARCAgencyListonCarrier’sbehalf.
39.16. IMPROPERLYREPORTEDTRANSACTIONmeansanARCTrafficDocument(s)Submittedin
Agent’sSalesReportthatcontainsunauthorized,false,and/orinaccuratedata.Improperly
ReportedTransactiondoesnotincludethoseTransactionscorrectedpriortoSubmission.
Effective:November7,2016
21
AgentReportingAgreement
39.17. INDUSTRYAGENTS’HANDBOOK(IAH)meanstheARC-authoreddocument(printorelectronic)
thatcontainsadditionalrulesandinstructionsunderthisAgreement.TheIAHisincorporated
byreferenceasthoughfullysetforthinthisAgreement.
39.18. INTERACTIVEAGENTREPORTING(IAR)meanstheARCtoolthroughwhichAgentaccessesand
SubmitsitsSalesReports.
39.19. LOCATIONmeansaplaceofbusinessoperatedbyAgentthatisbothapprovedbyARCandon
theARCAgencyList.Locationtypesincludethefollowing:
39.19.1. INDEPENDENTmeansanyLocationthatdoesnothaveaBranchorAssociateBranch;
39.19.2. HOMEOFFICEmeansanyLocationthathasoneormoreBranchesorAssociate
Branches;
39.19.3. BRANCHmeansanyLocationthatiswhollyownedbytheAgent’sHomeOfficeasa
singleentity,whichhasfullresponsibilityfortheBranchunderthisAgreement;and
39.19.4. ASSOCIATEBRANCHmeansanyLocationwhichisnotasingleentitywiththeHome
Office,inwhichtheHomeOffice,ortheEntitythatownstheHomeOffice,hasany
ownershipinterest.TheHomeOfficehasfullresponsibilityfortheAssociateBranchunder
thisAgreement.TherequirementsfortheAssociateBranchesaresetforthinSectionNof
theIAH.
39.19.5. AdditionalOfficeTypes
39.19.5.1. Therequirementsrelatingtoticketfulfillmentlocationsremainineffectandare
foundinSectionOoftheIAH.
39.19.5.2. Satelliteticketprinterlocationsandcentralizedservicelocations,includedonthe
ARCAgencyListpriortoJanuary1,2013,remainineffect.RefertoSectionOofthe
IAH.
39.20. LOG-INCREDENTIALmeanstheuniquecredentials,including,withoutlimitation,theUsername,
UserID,password,orresponsestoidentityverificationquestions,whichAgentusestoaccess
ARC’ssystems.
39.21. MANAGEMENTQUALIFIERistheappointedAgentorAgentemployeeresponsibleforAgency’s
operations.
39.22. MEMORANDUMOFAGREEMENTistheAgreementsignaturepagebywhichAgentandARC
consenttobeboundbythetermsofthisAgreement.ARCsignsonbehalfofARCandCarriers.
39.23. OPERATIONALE-MAILADDRESSmeansthee-mailaddressAgenthasdesignatedforreceiving
directivesandothercriticalnoticesfromARC.
39.24. PERIODENDINGDATE(orPED)meansthelastdayoftheSalesReportPeriod,Sunday.
39.25. SALESREPORTmeansthelistinIARofallTransactionsissuedbyAgentwithAgent’sARC
NumberduringtheSalesReportPeriod.
39.26. SALESREPORTPERIODmeansthe7-dayperiod,MondaythroughSunday,duringwhich
Transactionsareissued.
39.27. SPECIFICAPPOINTMENTiswhenaCarrierspecificallyappointsAgent(s).Agentisnotauthorized
toissueARCTrafficDocumentswithoutCarrier’sdirectauthoritytodoso.
Effective:November7,2016
22
AgentReportingAgreement
39.28. SUBMISSIONDEADLINEmeansthedateandtimebywhichaSalesReportisrequiredtobe
Submitted.TheSubmissionDeadlineis11:59p.m.ESToftheTuesdayfollowingtheendofthe
SalesReportPeriod,ortheWednesdayfollowingtheendoftheSalesReportPeriodifMonday
orTuesdayisaholidaydesignatedintheIAH.
39.29. SUBMITmeanscertifyingtheaccuracyofTransactionsintheSalesReportandauthorizingthe
settlementamountassociatedwiththeSalesReport.
39.30. SYSTEMPROVIDERmeansanon-ARCEntity,whoseservicesAgentusestoissueARCTraffic
Documentsand/orinsupportofitsreportingobligationsunderthisAgreement.System
ProvidershaveenteredintoagreementswithARCandCarriersinsupportoftheseservice
offerings.SystemProvidersinclude,butarenotlimitedto,ComputerizedReservationSystems
(CRSs)andGlobalDistributionSystems(GDSs).
39.31. TRANSACTIONorTRANSACTIONALDATAmeanstheticketingandotherinformationincludedin
theSalesReport.
39.32. UNITEDSTATESincludesthefiftystates,theDistrictofColumbia,andanyU.S.territory,
including,butnotlimitedtoPuertoRico,theU.S.VirginIslands,andAmericanSamoa.
39.33. UNREPORTEDSALEmeansaTransactioncompletedusinganARCTrafficDocument(s)thathas
notbeenSubmittedbyAgent.
39.34. VARIABLEREMITTANCEPLANisanarrangementnegotiatedbetweenanindividualCarrierand
Agent,underwhichAgentsettlesARCTrafficDocumentsdirectlywithanindividualCarrier.
39.35. VERIFIEDTRAVELCONSULTANT(VTC)meansanARC-approvedEntitythatisnotauthorizedto
issueARCTrafficDocumentsonbehalfofCarriers.
Effective:November7,2016
23
Agent Reporting Agreement –
Industry Agents’ Handbook
(ARA-IAH)
Sections A - O
3000 Wilson Blvd., Suite 300
Arlington, VA 22201
703.816.8000
www.arccorp.com
ARA-IAHSectionsA-0
TableofContents
Contents
SectionA:Notices....................................................................................................................................................2
SectionB:SecurityGuidelinesforARCTrafficDocuments.......................................................................3
SectionC:RetentionandInspectionofAgentRecords............................................................................5
SectionD:FinancialInstrument.........................................................................................................................6
SectionE:CarrierParticipantsinAgent'sStandardTicket&ARCSettlementPlan.......................8
SectionF:ExamplesofBreachesbyAgent.....................................................................................................9
SectionG:PersonalGuarantyofPaymentandPerformance.................................................................10
SectionH:UseofARCOnlineServicesandTools.....................................................................................13
SectionI:ExamplesofChangeinOwnership.............................................................................................16
SectionJ:InstructionsforTemporaryClosure..........................................................................................18
SectionK:ReportsandSettlements...............................................................................................................19
SectionL:VariableRemittance........................................................................................................................22
SectionM:AdministrativeandCompensatoryFees...............................................................................24
SectionN:AssociateBranchSupplementaryAgreement........................................................................26
SectionO:AdditionalOfficeTypes.................................................................................................................33
November7,2016
1
SectionA
SectionA:Notices
1. Unlessspecificallydirectedotherwise,anynoticesthatarerequiredtobegiveninwritingmustbe
sentusinganyofthefollowing:
1.1. U.S.mail
1.2. E-mail
1.3. Facsimile
1.4. Government-licenseddeliveryservicethatprovidesashippingreceipt,airbill,ordocumentation
ofdelivery
2. TheeffectivedateofanynoticesbetweenARCandAgent,forthepurposeofcalculatingany
deliveryrequirements,willbethedatethenoticewasmailed,e-mailed,faxed,orplacedinthehand
ofagovernment-licenseddeliveryservice.
3. Anynoticethatisnotrequiredtobemadeinwritingcanbedeliveredbyanycommonmethod
includingthosementionedabove,telephone,IARmessageboard,ornoticeonARC’scorporate
websites,suchasMyARC.
4. ARCwilldelivernoticestoAgent’soperationale-mailaddressorhomeofficeaddress.Fornoticesto
ARC,AgentshouldfollowtheinstructionsprovidedintherelevantsectionsoftheIndustryAgents’
Handbook.Foradditionalassistance,pleasecontacttheCustomerCareCenter.
November7,2016
2
SectionB
SectionB:SecurityGuidelinesforARCTrafficDocuments
ThisSectionincludestherulesgoverningthesecurityofARCTrafficDocuments.Adheringtotheserules
protectsyouintwoways.First,compliancewiththeserulesmeansthatyouwillnotbeheldliablebyARC
ortheairlinesforusageofARCTrafficDocumentsintheeventofatheft(includingshoplifting,robbery,
burglary, etc.) of the ARC Traffic Documents, except by you, your employees, or your independent
contractors. Second, adherence to the rules will act as a deterrent to criminals, who in many cases will
inspect an agency location before deciding to carry out the crime. Not complying with these rules or
exercisingreasonablecarefortheprotectionofARCTrafficDocumentsmeansthatyouwillbeliablefor
usageofstolenARCTravelDocuments.
ARCTrafficDocuments(PaperFormat)
ThesecurityguidelinesoutlinedbelowapplytothefollowingtypesofARCTrafficDocuments(alsoknown
as “accountable documents”): 4-flight manual tickets; Automated Ticket/Boarding Passes (ATBs); and,
Prepaid Ticket Advices (PTAs). All other documents supplied by ARC are considered “non-accountable
documents”andarenotsubjecttothesecurityrules.
1. TotalInventory
Agentsmaymaintaina3-monthsupplyofARCTrafficDocuments,foreachLocation,basedonpastusage
and shipment history. If, as a result of extraordinary circumstances (e.g., physical damage to the Traffic
Documents held in inventory, the planned movement of a large tour group, etc.) you require additional
inventory,contacttheARCCustomerCareCenter.
2. DestructionofInventory
If you wish to destroy or account for destroyed ARC Traffic Documents, you must follow the Traffic
DocumentDestructionprocessoutlinedinthelatesteditionoftheIAH.
3. QuantityperOrder
When ordering ARC Traffic Documents, the maximum allowable order quantity will be automatically
determined by the ARC Document Ordering System and made available to Agents upon accessing the
System.
4. StorageRequirements
ARC Traffic Documents must be secured in a metal safe, metal filing cabinet or other metal container,
underyourexclusivecontrol,whichpossessesthefollowingsecurityfeatures:(a)aweight(whenempty)
of200ormorepoundsorpermanentattachmenttothefloororwall(s)ofthelocation;and,(b)alocking
devicemeetingULclassification768(combination/timelocks).
November7,2016
SectionB
GeneralSecurityoftheTravelAgent’sApprovedLocationandOperations
A. Youshouldclose,lock,orotherwisesecureallmeansofaccesstotheLocationatalltimeswhenthe
Locationisnotattendedbyauthorizedagencypersonnel.
[Note: You may provide access to the Location to non-agency personnel (i.e., landlord, cleaning
services, independent contractors, etc.) when the Location is not attended by authorized agency
personnel.Insodoing,however,youbearresponsibilityforanyARCTrafficDocumentlostorstolen
undersuchcircumstances.Itis,therefore,essentialthatyourequireallnon-agencypersonneltoclose,
lock, or otherwise secure all access to the Location by unauthorized personnel while they are
occupyingit.ARCsuggeststhatyouexaminethepossibilityofobtainingindemnificationagainstany
liabilityyouincurwithARCoritsCarriersasaresultofactsofnegligenceonthepartoftheauthorized
non-agencypersonnel.]
B. All automated tickets not in use in a printer should be locked up in the metal safe or container
described above, as well as all manual tickets, except those that are being issued. All automated ticket
printersmustbeeither(a)locked,or(b)housedinalockedcontainer.
C. PrinterLocation. All ticket printers should be located in a separate, lockable room or area within
theagencythatisaccessibleonlytoyourpersonnel.
[Note:Ifyouragencylocationhasmorethanoneroomoroffice,itissuggestedthattheprinter(s)
beplacedintheroomleastaccessibletothegeneralpublic.Iftheagencylocationisprimarilyone
roomoroffice,apartitioncouldbebuiltorcreatedwithbookshelves,forexample,toseparatethe
ticketprinter(s)fromaccessbynon-agencypersonnel.]
PartB:ARCTrafficDocuments(ElectronicFormat)
AgentmustexercisereasonablecareintheissuanceordisclosureofARCTrafficDocuments/data/numbers
in an electronic format, to prevent the unauthorized issuance or use of such Traffic
Documents/data/numbers."Reasonablecare"includeseffective,electronicchallengeandauthentication,
e.g.,Log-inCredentialsorSecurityCredentials,including,forexample,Usernames,PINandpassword,of
anyuseraccessingagenthardware,systems,oranyothersystemsorhardwarewhichcanbeusedtoissue
ARC Traffic Documents/data/numbers in an electronic format. At a minimum, Agent must implement
appropriate physical, electronic, and managerial procedures and systems to prevent unauthorized
access,disclosure,alterationordestructionofTransactionalData.
November7,2016
SectionC
SectionC:RetentionandInspectionofAgentRecords
1.1. AsrequiredbySection12oftheARA,Agentmustretaincopiesofdocuments,included,butnot
limitedto,thefollowingforaperiodofatleast2yearsfromtheSubmissionDeadlineforthose
documents:
1.1.1.VoidedTrafficDocuments
1.1.2.CompletedUniversalCreditCardChargeForms(UCCCFs),whichincludecardholder
signature,creditcardimprint,andauthorizationcode.
1.1.3.PTARefundDocuments
1.1.4.DiscountCertificatesandVouchers
1.1.5.DebitandCreditMemos
1.1.6.ValueCouponsassociatedwithrefunds,exchanges
1.1.7.OthersupportingdocumentationasmayberequiredbyARCorCarriers
1.1.8.OriginalpaperagentcouponsforticketsissuedonmanualARCTrafficDocuments(4flights)
November7,2016
SectionD
SectionD:FinancialInstrument
Purpose:Agent’sFinancialInstrumentisusedafterterminationoftheAgent’sARAinordertocoverall
amountsowedbyAgenttoCarriersandARCfortransactionsissuedonARCTrafficDocumentssupplied
intrusttoAgent.Thisincludes,butisnotlimitedto,allamountsowedfortransactionsthathavebeen
usedbutnotreportedorpaidfor;amountsowedfordishonoreddrafts;andamountsowedasaresult
ofthelossmisapplication,theft,forgery,orunlawfuluseofARCTrafficDocuments,unlesstheAgenthas
beenrelievedofliabilityforsuchunderthisAgreement.
1. AFinancialInstrumentmaybeintheformofabond,letterofcredit,orcashsecuritydeposit.Ifitis
abond,itmustbeissuedbyasuretyincludedonthecurrentrevisionofCircular570,“Surety
CompaniesAcceptableonFederalBonds,”issuedbytheUnitedStatesTreasuryDepartment.
2. Agents,exceptforthosewithAssociateBranches(seeSection3below),mustcomplywiththe
FinancialInstrumentrequirementsindicatedbelowandwithinPartIV,Section30,oftheAgent
ReportingAgreement(ARA).
2.1. AstheAgent,youarerequiredtomaintainaFinancialInstrumentintheformandamount
requiredbyARCforthejointandseveralbenefitofCarriersandARC.
2.2. ARCwillnotifyyouoftherequiredFinancialInstrumentamount90calendardayspriortothe
anniversarydateofyourFinancialInstrument.Ifanadjustmentisrequired,youarerequiredto
complywiththenewrequirementnolaterthantheanniversarydate.
2.3. ARCwillsettheamountoftheFinancialInstrumentwithinaminimumof$20,000anda
maximumof$70,000forthefirst2yearsfollowingyourAgency’sinclusionontheARCAgency
List.Inyourfirstyear,theFinancialInstrumentissetat$20,000.Forthesecondyear,the
amountoftheFinancialInstrumentwillbethegreaterof$20,000ortheaveragemonthlynet
cashremittanceasdeterminedfora12-monthperiod,calculated5monthspriortothe
anniversarydateofyourFinancialInstrument.TheFinancialInstrumentwillnotexceed
$70,000,unlessyourAgencyhasAssociateBranchesorbecomessubjecttotheadditional
operatingrequirementsofSection34oftheARA.
2.4. AfteryourAgencyhasbeenontheARCAgencyListforatleast2years,theamountofthe
FinancialInstrumentwillbethegreaterof$10,000ortheaveragemonthlynetcashremittance
asdeterminedfora12-monthperiod,calculated5monthspriortotheanniversarydateofyour
FinancialInstrument.TheFinancialInstrumentwillnotexceed$70,000,unlessyourAgencyhas
AssociateBranches.
2.5. AnyrequiredchangeintheFinancialInstrument,oranyrequiredadjustmentoftheamountof
theFinancialInstrument,willbemadeeachtimetheFinancialInstrumentisrenewed,
reinstated,orreplaced,asapplicable.
2.6. IfARCdeterminesthattheFinancialInstrumentislessthantherequiredamount,ARCwillnotify
theAgentatleast90calendardaysinadvanceoftheanniversarydateoftheFinancial
Instrument.
2.7. Ifarequiredincreaseisgreaterthan$10,000,AgentmayincreasetheFinancialInstrumentin
incrementsof25percentperquarter.TheFinancialInstrumentmustbeattherequired
amountpriortothestartofthenextanniversarydate.ContacttheCustomerCareCenterto
discussincrementalincreasespriortoyourcurrentanniversarydate.
November7,2016
SectionD
3. GuarantyLevelsforAgentswithAssociateBranches
3.1. ForAgentswithoneormoreAssociateBranchestheminimumFinancialInstrumentamountis
$70,000andthemaximum$150,000.
3.2. AgentmustmaintainaFinancialInstrumentintheformandamountrequiredbyARCforthe
jointandseveralbenefitofCarriersandARC.
3.3. ARCwillinformAgentoftherequiredFinancialInstrumentamount90calendardayspriortothe
anniversarydateofAgent’sFinancialInstrument.Ifanadjustmentisrequired,Agentmust
complywiththenewrequirementnolaterthantheanniversarydate.
3.4. TheamountoftheFinancialInstrumentwillbetheaveragemonthlynetcashremittanceas
determinedfora12-monthperiodcalculated5monthspriortotheanniversarydateofAgent’s
FinancialInstrument.TheFinancialInstrumentwillnotexceed$150,000.
3.5. AnyrequiredchangeintheFinancialInstrument,oranyrequiredadjustmentoftheamountof
theFinancialInstrument,willbemadeeachtimeitisrenewed,reinstated,orreplaced,as
applicable.
3.6. AftertheapprovalofanAssociateBranch,ifARCdeterminesthattheFinancialInstrumentis
lessthantherequiredamount,ARCwillnotifytheAgentatleast90calendardaysinadvanceof
theanniversarydateoftheFinancialInstrument.
3.7. Ifarequiredincreaseisgreaterthan$10,000,AgentmayincreasetheFinancialInstrumentin
incrementsof25percentperquarter.TheFinancialInstrumentmustbeattherequired
amountpriortothestartofthenextanniversarydate.ContacttheCustomerCareCenterto
discussincrementalincreasespriortoyourcurrentanniversarydate.
ChangeofAgencyOwnership
4. Wheneverthereisachangeinownershipinvolvingyouragency,anapplicationisrequired.The
FinancialInstrumentwillbeadjustedbasedonthetypeofownershipchange.SeeSectionIfor
examplesofownershipchanges.
4.1. ForachangeinownershipthatdoesnotinvolvetheadditionofnewownersorEntities,the
FinancialInstrumentwillnotbelessthantheamountrequiredoftheAgentpriortothechange
inownership.
4.2. ForacompletechangeinownershipthatcreatesanewEntity,orachangeof30%ormoreof
theownershipofanexistingAgenttonewowners,theFinancialInstrumentwillbeaminimum
of$20,000ortheamountrequiredoftheAgentpriortothechangeofownership,whicheveris
greater.AswithnewAgentsunderparagraph2.3,theFinancialInstrumentamountwillremain
ineffectforatleast2years.
4.3. ForachangeinownershipthatincludesanAssociateBranch,theFinancialInstrumentwillbeas
statedinSection3.
November7,2016
SectionF
SectionE:CarrierParticipantsinAgent'sStandardTicket&ARCSettlementPlan
AllARCparticipatingcarriers,aslistedinSection1oftheIndustryAgents’Handbook,havespecifiedtheir
method of agent appointment. Their method of appointment is either one of General Concurrence or
SpecificAppointment.Thetwomethodsofagentappointmentcanbedescribedasfollows:
GeneralConcurrence:ThecarrierappointsallagentsthatappearontheARCAgencyList
unlessthecarriernotifiesbothARCandtheagentofadecisionnottoappointtheagent
oragencylocation.
SpecificAppointment:ThecarrierappointsagentsappearingontheARCAgencyListspecifically,
andwilldosobydeliveringtoeachappointedagentawrittenCertificateofAppointment.Under
theseterms,ticketingusingacarrier'svalidationcodeisnotpermissibleunlessdoneunderthe
specificappointmentofthevalidatingcarrier.AgentsseekingaCertificateofAppointmentfroma
carriershouldseeksuchCertificatedirectlyfromthecarrier.
November7,2016
SectionF
SectionF:ExamplesofBreachesbyAgent
1. ExamplesofsituationswhereitappearstoARCthattheremaybeorhasbeenfraudulentconduct
onthepartoftheAgentinclude:
1.1. FailuretoincludeinareportallARCTrafficDocuments(paperorelectronicformat)issued
throughthecloseoftheSalesReportPeriod,eventhoughpaymentwassubsequentlymade
upondemand
1.2. IssuanceofARCTrafficDocuments(includingTrafficDocumentsissuedforTravelAgentService
Fees(TASFs)andothertransactions)againstacreditcardwithoutthecardholder'sauthority,or
againstastolenorotherwisefraudulentcreditcard
1.3. FailuretoaccountformissingARCTrafficDocumentsorforflight,exchange,orservicecoupons
1.4. Permittingalteration,omission,orotherfalsificationoncouponsoforiginalARCTraffic
Documents(paperorelectronicformat)oronanyreissue
1.5. Falsificationofreports,TrafficDocuments,orotherdocuments
1.6. UseandmisuseofIARthatresultsinreportingcashrefundsagainstsalesmadeoncreditcards
1.7. PermittingtheunlawfulorunauthorizedaccessoruseofanairlineorSystemProvidercomputer
reservationssystemowned,leasedorcontrolledbyitinconnectionwiththeissuanceofARC
TrafficDocuments
1.8. Engaginginapatternofpotential“bust-out”activity,suchasasudden,sharpfluctuationof
sales,refunds,exchanges,voids,etc.
1.9. Issuingand/orreportingthroughIAR,duplicateorinvalidCreditMemosorothersupporting
documents,e.g.,vouchersand/orcreditcertificates
1.10. IntheabsenceofspecificpermissionoftheCarrier,(a)usinganycreditcardwhichisissuedin
thenameoftheAgent,orinthenameofanyoftheAgent’sownersorpersonnel,orinthe
nameofanythirdparty,forthepurchaseofairtransportationforsaleorresaletoother
persons,or(b)includinginaSalesReportorreportingtotheCarrierthesaleofanyair
transportationasacreditcardtransactionwhereatanytimetheAgentbills,invoices,or
receivespaymentincashfromthecustomerforsuchairtransportation
1.11. Submittingforrefund,exchangeorreissuanceanARCtrafficdocumentortransactionthathas
beenusedorhasalreadybeenrefunded,exchanged,orreissued
1.12. UseormisuseofIARthat,forexample,preventstheproperreportingofallsalesorresultsin
ImproperlyReportedTransactions,includingimproperlyreportedexchangesorrefunds
November7,2016
SectionG
SectionG:PersonalGuarantyofPaymentandPerformance
SectionI:Applicability
TheprovisionsofthisSectionapplywhenevertheAgentisrequiredbytheAgentReportingAgreement(ARA),to
executea"PersonalGuarantyofPerformanceofAgent'sAgreement"(Guaranty)
SectionII:Guarantors
TheguarantorsonsuchGuarantyshallinclude:
A. Allindividualshavingastockorotherbeneficialinterestof30percentormoreintheAgentandallofficers,
directors,oremployeeshavingastockorotherbeneficialinterestof10percentormoreintheAgent,ifsuchisa
corporation;or
B. WheretheAgentisacorporationinwhich30percentormoreofthestockorotherbeneficialinterestisowned
byanothercorporation(s)(hereinafter"parentcorporation")thenallindividuals,inadditiontothosewhomay
meettherequirementsofparagraphAabove,havingastockorotherbeneficialinterestof30percentormore
intheparentcorporationandofficers,directorsoremployeeshavingastockorotherbeneficialinterestof10
percentormoreintheparentcorporation;or
C. EachgeneralpartnerandthespouseofeachgeneralpartneriftheAgentisageneralorlimitedpartnership;or
D. ThespouseoftheAgentwhichisasoleproprietorship;or
E. IftheAgentisalimitedliabilitycompany(LLC),allindividualswhoaremembersoftheLLC.
SectionIII:EffectivenessofGuaranty
TheoriginallyexecutedGuarantyisofcontinuingeffect,anditseffectiveness,andtheguarantors'liability
thereunder,survivesterminationoftheAgent’sAgentReportingAgreement,exceptasmodifiedpursuanttoSection
IVbelow,andneednotbere-executeduponamendmentoftheAgentReportingAgreement,includingsubsequent
revisionsandreissuesthereof.
SectionIV:ModificationofPersonalGuaranty
A. BymutualconsentofARCandtheAgent,guarantorsmaybeadded,deleted,orsubstitutedforexisting
guarantors,ifcircumstanceschange,e.g.,changeofcorporateorpartnershipstructure,orchangeofspouse
occursaftertheGuarantyhasbeenexecuted.
B. AftertheGuarantyhasbeenineffectfortwoyears,theAgentmaypetitiontheArbiterforreviewofthe
requirementtomaintainsuchGuaranty.
November7,2016
10
SectionG
SectionV:Agreement-PersonalGuarantyofPaymentandPerformanceofAgent'sAgreement
AsaconditionimposedforcontinuedinclusionofthebelowlistedAgentontheARCAgencyListoftheAirlines
ReportingCorporation(ARC),and/orpursuanttothetermsoftheARA,theundersignedguarantor(s)herebyjointly
andseverallypromiseandguarantytheunconditionalpaymentbyLegalorTradeName:
______________________________(Agent),theHomeOfficeofwhichhasbeendesignatedwithARCNumber
_______________________.Forthesepurposes,AgentshallmeanallAgentLocation(s)(asdefinedinSection
39.19oftheARA),,includingwithoutlimitationanylocationwhichmaybeaddedtotheARCAgencyListafterthe
dateofexecutionhereof,ofallindebtedness,liabilitiesandobligationsofeverynatureandkindarisingoutoforin
connectionwiththeAgentReportingAgreementaspresentlyconstitutedandasmaybehereinafteramended,
includingsubsequentrevisionsandreissuancesthereof,excepttotheextentthatsuchindebtedness,liabilitiesor
obligationsaresatisfiedfromtheproceedsofthesuretybondorletterofcreditorCashSecurityDeposit(Financial
Instrument)requiredundersaidAgentReportingAgreementand/oraresatisfiedbytheassetsofAgentitself.
Anyandalldisputesregardingtheobligationsoftheundersignedguarantor(s)toARCshallberesolvedbytheTravel
AgentArbiter,anarbitrationforumestablishedasanindependententity,inaccordancewiththerulespromulgated
andpublishedbytheTravelAgentArbiter,andthedecisionshallbefinalandbinding;provided,however,that
neitherARCnoranyguarantorisprecludedfromseekingjudicialrelieftoenforceadecisionoftheTravelAgent
Arbiter,ortocompelcompliancewiththisGuarantypriortothefilingofanansweronaproceedingconcerningsuch
requirementbeforetheTravelAgentArbiter.Subjecttotheabove,theTravelAgentArbitershallhavediscretionto
consolidateinonedocketanyactionconcerningARCandTravelAgent,andARCandanyorallundersigned
guarantor(s).
AnyassetswhichaspousewhoexecutedthisGuarantyacquiredindependentlyofAgentareexcludedfromthe
provisionsofthisGuaranty.
AuthorityandconsentareherebyexpresslygivenARCfromtimetotime,andwithoutanynoticetotheundersigned
guarantor(s),togiveandmakesuchextensions,renewals,settlements,andcompromisesasitmaydeemproper
withrespecttoanyoftheindebtedness,liabilitiesandobligationscoveredbythisGuaranty;andthereleasebyARC
ofanyotherEntity,orsettlementwithanyotherEntity,ortherevocationorimpairmentofthisGuarantywith
respecttooneormoreoftheguarantors,shallnotoperatetoprejudicetherightsofARCagainstanyorallother
guarantorshereunder.ThisGuarantyshallbindthepartiesbywhomitissigned,whetherthesameissignedbyone
ormoreguarantors.ThisGuarantymayconsistofseveralcounterparts,allofwhich,takentogether,shallconstitute
asingleGuaranty.
ItisunderstoodthatthisisacontinuingabsoluteandunconditionedGuaranty,co-extensivewithsaidAgent
ReportingAgreementaspresentlyconstitutedandasmaybehereafteramended,includingsubsequentrevisions
andreissuancesthereof.Theundersignedguarantor(s)herebyjointlyandseverallywaivenoticeofacceptanceof
thisGuarantyandofalldefaultsbyAgentofnonpaymentandnonfulfillmentofanyandallofsaidindebtedness,
liabilities,andobligations.
TheobligationshereunderarenotsubjecttoanylimitationundertheUnitedStatesBankruptcyCode,11U.S.C.sec.
101etseq.(“BankruptcyCode”)intheeventthatAgentisadebtorinacaseundertheBankruptcyCode.
TheexecutionofthisGuarantyshallnotbeconstruedastocreateapresentsecurityinterestorlienontheassetsof
theguarantorshereto.
ThisGuarantyshallbeconstruedinaccordancewithandgovernedbythelawsoftheCommonwealthofVirginia.
November7,2016
11
SectionG
Faxedandscannedsignaturesshallconstituteoriginalsignaturesandshallbetreatedwiththesameforceand
effectasoriginalsignatures.
Signedandsealedbytheundersignedonthedatesetforthbelow.
___________________________________________________
(Printed Name of Guarantor)
________________________________________________
(Residence Address)
________________________________________________
(City, State, Zip Code)
________________________________________________
(Residence Telephone Number)
________________________________________________
(Signature of Guarantor)
This Document Must Be Signed in the Presence of a Notary.
(FOR NOTARY USE ONLY)
County of ___________________________________ State of ___________________________________
On this
day of
, 20
, _______________________________________
(Print Name of Above Guarantor)
appeared before me and, having been duly sworn by me, signed the Guaranty in my presence.
_______________________________________________
Notary Public Signature
NOTARY SEAL
My commission expires on
____________________________
A SEPARATE PERSONAL GUARANTY MUST BE EXECUTED BY EACH TYPE OF GUARANTOR IDENTIFIED IN SECTION II ON
THE REVERSE. EACH PERSONAL GUARANTY MUST CONTAIN ALL PAGES.
November7,2016
12
SectionH
SectionH:UseofARCOnlineServicesandTools
1. ARCprovidesvariousonlineservices(collectivelyreferredtoas“ARCTools”or“Tools”)Agentsuse
tosubmitandreviewTransactionalDataorotherwiseconductbusinesswithARCandtheCarriers.
CurrentlytheseToolsincludeARC’s:InteractiveAgentReporting(IAR),InternetSalesSummaries,
MemoManager,andDocumentRetrievalService,aswellastheMyARCwebportalthroughwhich
certainARCToolsareaccessed.
2. Agent’suseofARCToolsissubjecttothetermsoftheARAandtheTermsofUseforeachTool,
whichareincorporatedbyreference.
3. Agentrepresentsthatithascomputerequipment,software,andInternetconnectioncompatiblefor
accessingMyARCandARCTools,andthatsucharecapableofasufficientlyhighlevelofencryption
tomeetthesystemrequirementsestablishedbyARCfromtimetotime.Agentmustensurethe
computerequipmentAgentusestoaccessARC’sToolsusesanindustry-standardanti-virussoftware
programcapableofdetectingandremovingcomputerviruses,aswellassoftwareforprotection
againstmalware.Agentwillfurtherensurethatsuchsoftwareisupdatedperiodicallyinaccordance
withacommerciallyreasonableschedule.
3.1. ARCwillassigntotheAgentLog-inCredential(s)thatwillallowAgenttoaccessMyARCand
ARC’sTools,andwillalsoallowAgenttocreateadditionalLog-inCredentials.
3.2. Log-inCredentialsshallserveastheAgent’sauthentication,authorizationandverificationofall
TransactionalDataandotherdataandinformationtransmittedtoARCand/ortheCarriers.
AgentmustcomplywithallARCinstructionsandrulesconcerningtheLog-inCredentialsthat
ARCprovidesandupdatesfromtimetotime.
3.3. Agent’suseofLog-inCredentialsshallhavethesameforceandeffectasahandwritten
signature,shallbindtheAgentforallpurposesandshallbedeemedadmissibleasbetweenthe
partiestothesameextentandunderthesameconditionsasotherbusinessrecordsoriginated
andmaintainedindocumentaryform.Agentagreesnottocontestthevalidityorenforceability
ofelectronictransactionsconfirmedwiththeAgent’sLog-inCredentials.
3.4. AllLog-inCredentials,whethercreatedbyAgentorbyARCattherequestoftheAgent,are
confidentialandmustbemaintainedbytheAgentasconfidential.TheAgentwillnotdisclose
itsLog-inCredentialstoanyonewhoisnotauthorizedtoactonitsbehalf.DisclosureofLog-in
CredentialstootherpersonsorEntitiesmaycompromisethesecurityofconfidentialfinancial,
transactional,passenger,andotherdataprovidedtoARCand/orCarriers.
3.5. Agentassumesliabilityforuse,misuse,orunauthorizeduseofAgent’sLog-inCredentials
suppliedbyARC,whethercreatedbytheAgentorbyARCattherequestoftheAgent.Agent
mustindemnify,defendandholdharmlessARC,itsowners,directors,officers,employees,
representativesandparticipatingCarriers,frominjuryordamagetoanyPerson,propertyor
November7,2016
13
SectionH
entityincluding,butnotlimitedto,theAgent,resultingfromanysuchuse,misuseor
unauthorizeduseoftheAgent’sLog-inCredentials.
3.6. AgentwillimmediatelynotifytheARCCustomerCareCenteratARC’sheadquartersiftheAgent
believesthatanyoneofitsLog-inCredentialshasbeenlost,stolen,misused,misappropriated,
orotherwisecompromised.Notwithstandingtheforegoing,notificationtoARCwillnotrelieve
Agentofitsobligationshereunder.
4. AgentmustdesignateaDocumentRetrievalService(DRS)SecurityManagerwhoshallperform
administrativefunctionsfortheAgent’susersofDRS,includingbutnotlimitedtocreatingand
terminatingindividualDRSuseraccounts,DRSadministrators,resettingofpasswords,etc.,
accordingtoinstructionsARCmayprovidefromtimetotime.
5. AgentmustdesignateaMyARCPrimaryAdministratorwhoshallperformadministrativefunctions
fortheAgent’sMyARCusersincludingbutnotlimitedtocreatingandterminatingindividualMy
ARCuseraccounts,MyARCadministratorsandTooladministrators,andgrantingandterminating
userandadministratoraccesstoMyARCandARCTools,resettingofpasswords,etc.,accordingto
instructionsARCmayprovidefromtimetotime.
6. AccountprofilescreatedinToolsbyAgent,itsadministrators,securitymanagersorToolusers,and
theinformationcontainedintheprofiles,willnotconstituteanapplicationfor,and/orARCapproval
ofachangeofAgent’sname,address,status,organizationalstructureorownership,etc.
7. ARC’sToolsandonlineservicesareprovidedonan“AsIs”and“AsAvailable”case-by-casebasis,
andaresubjecttonecessaryscheduleddowntimeformaintenance,unscheduledmaintenance,and
systemoutages.Agent’saccesstoARC’sToolsandonlineservicesmaybeinterruptedattimesfor
maintenance,systemoutagesandothercircumstancesbeyondARC’sControl(e.g.,
telecommunicationsoutage,etc.),includingbutnotlimitedto,thosecircumstancesdescribedin
Section9below.
8. TheavailabilityofARC’sToolsissubjecttointerruptionanddelayduetocausesbeyondARC’s
reasonablecontrol,including,withoutlimitation,delaysbysuppliersorvendorswhichareoutsideof
ARC’sControl;actsofGodorofapublicenemy;actsoftheUnitedStatesoranystateorpolitical
subdivision;fires,severeweather,floods,earthquakes,naturaldisasters,explosions,orother
catastrophes;andlaborstrikes,slowdowns(collectively,“excusabledelay”).ARCwillnotbeliable
toAgentforanyexcusabledelay.InnoeventwillARCbeliableforanyindirect,special,punitive
orconsequentialdamages,includinglostprofits,evenifARChasbeenadvisedofthepossibilityof
suchdamages.
9. ARCreservestherighttoassessafeeforanynew,modified,orenhancedservicesrelatedtoARC’s
Tools,withtheexceptionofservicescoveredbytheannualfeedescribedinSectionMoftheIAH,
thatmaybeofferedtotheAgentinthefuture,subjecttotheapprovalofsuchfeebyARC’sBoardof
November7,2016
14
SectionH
Directors.Byusinganynewormodifiedfeatureswhentheybecomeavailable,theAgentagreesto
beboundbytherulesconcerningthesefeatures.
10. ThemeansbywhichARCprovidesaccesstoARC’sToolsandonlineservices,andtheformatand
otherfeaturesofsuchToolsandonlineservices,maybemodifiedordeletedbyARCatanytime
uponnoticetotheAgent.
11. UponterminationoftheAgent’sAgreementoraccesstotheARCToolsand/oronlineservices,the
informationthattheAgentwouldotherwisebeabletoaccesselectronicallyorviaMyARC,uptothe
terminationdate,maybemadeavailabletoAgent,uponwrittenrequest,intheformatandmedia
(e.g.,CDROM,viaanInternetwebsite,etc.)asdeterminedbyARC,initssolediscretion.ARC
reservestherighttoassessafeeforsuchservice.Agentacknowledgesandagreesthatnothingin
thisSectionwillaffecttheterms,conditions,orvalidityoftheAgentReportingAgreement.
November7,2016
15
SectionI
SectionI:ExamplesofChangeinOwnership
Toapplyforachangeinownership,submityourrequestthroughtheARCAccreditationTooloras
directedinwritingbyARC.
1.1. ExamplesofachangeinownershipstatusoftheAgentthatinvolvesatransferofthe
ownershipoftheAgentoranAgentLocation(s)toanewowner(s)oranewentity(ies).
1.2. Agent“DEF,Inc.”isownedbyBobandMary,50/50.BobandMaryeachsell100%oftheir
sharesinDEFtoSue.Suebecomesthe100%ownerofDEF,Inc.[TypeII]
1.3. Agent“AAA,Inc.”isownedbyBobandMary50/50.Theyeachsell20percentoftheirsharesto
John.ResultingownershipisJohn(40)Bob(30)andMary(30).[TypeII]
1.4. Agent“ABC,Inc.”isowned100%byBob.“XYZInc.”owned100%byMary,acquires“ABCInc.’s”
travelagencybusiness.UponapprovalbyARC,“XYZ,Inc.”isthenewAgent.[TypeV](See,
Section16.1oftheARAfordescriptionofacquisition)
1.5. AgentFFF,Inc.transfersoneitsbranchLocationstoARCapprovedAgentGGG,Inc.FFF,Inc.’s
branchbecomesaLocationofGGG,Inc.[TypeIV]
2. ExamplesofachangeinownershipstatusoftheAgentthatdoesnotinvolveatransferof
ownershiptoanewowner(s)oranewentity(ies).
2.1. Agent“DEF,Inc.”isownedbyBobandMary50/50.Marytransfers100%ofhersharestoBob.
Bobowns100%ofDEF,Inc.DEF,Inc.remainstheagent.(nonewowners)[Type1]
2.2. SoleproprietorJohnsetsupacorporationcalledJohn,Inc.Johnisthe100%shareholderof
John,Inc.JohnInc.assumesliabilityforalltransactionsissuedbySoleproprietorJohn.
(Structuralchange–nonewowners)[TypeIII]
3. ChangeinOwnershipDuetotheDeathofaSoleProprietororPartner
3.1 Intheeventofthedeathofasoleproprietororpartner,contactARC’sCustomerCareCenter.
3.1.1. AttherequestoftheEntityentitledtorepresentthedeceased'sestateand/ortherequestof
theremainingpartner(s),ARCmayenterintoatemporaryAgreementwiththeEntityactingonbehalfof
theestateprovidedthattheEntitysubmitsaproperFinancialInstrumentinthenameoftheestateand
continuestooperateattheLocation(s)coveredbythisAgreement.
3.1.2. ThetemporaryagreementwillbeinthesameformandhavethesameeffectasthisAgreement,
andARCmayterminatethistemporaryAgreementatanytimeARCdeterminesthattheEntityactingon
behalfoftheestatedoesnotmeetrequirementsoftheARA,isnotincompliancewiththeARAor
cannotbereliedupontocomplywiththetermsoftheARA.Uponterminationofthetemporary
agreement,ARCwilltakeactionasdirectedinSubsections6.7and6.8intheARA.
3.1.3. IftheEntityentitledtorepresenttheestate,orwithwhomthetemporaryAgreementis
executed,proposestotransferthetemporaryAgreementtoanheir,legatee,oranotherEntity,the
proposedtransferwillbedeemedachangeofownershipandtheproceduresinthisAgreement,andthe
applicationagreementandinstructionswillapply.
November7,2016
16
SectionI
3.1.4. IfARCdeterminesthattheEntityactingonbehalfoftheestatedoesnotmeetrequirementsof
theARA,isnotincompliancewiththeARAorcannotbereliedupontocomplywiththetermsofthe
ARA,ARCreservestherighttonotifyCarriersandwithdrawallARCTrafficDocuments(paperformat)
suppliedtoAgentandnotifySystemProviderstoprohibitfurtherissuanceofARCTrafficDocuments.
November7,2016
17
SectionJ
SectionJ:InstructionsforTemporaryClosure
1. IntheeventofasituationbeyondAgent'scontrol,suchasfire,flood,orillness,Agentmayrequest
totemporarilycloseitsLocation(s)bycontactingARC’sCustomerCareCenter.
2. Duringtheperiodoftemporaryclosure,AgentisrequiredtomaintainitsFinancialInstrument.ARC
reservestherighttonotifyCarriers,notifySystemProviderstoinhibitissuanceofARCTraffic
Documents,andwithdrawARCTrafficDocumentsfromtheLocation(s).
3. Pleasenote:Intheeventofaregionaldisastersuchasahurricane,earthquake,etc.,affectinga
largenumberofagents,ARCwillproactivelyensurethatallAgentLocation(s)intheaffectedareas
areexcludedfromcompensatoryfees;however;ifyourLocation(s)continuetoremainclosed
beyondthetimeframecommunicatedbyARCforareportingextension,pleasecontactARC’s
CustomerCareCenterforfurtherassistance.
November7,2016
18
SectionK
SectionK:ReportsandSettlements
1. SalesReports
1.1. AgentmustSubmititsSalesReport(s)incompliancewiththeinstructionsprovidedbyARCinthe
IndustryAgents’HandbookandtheAgentReportingAgreement.
1.2. Agent’sSalesReportsmustaccountforandincludeallARCTrafficDocumentsissuedand
validatedduringtheSalesReportPeriodandconfirmtheaccuracyofdataincludedintheSales
Report,includingtransactionsfornon-airtransportation.
1.3. IfAgenthassoldnoairtransportationorancillaryservicesduringtheSalesReportPeriod,ARC
willautomaticallysubmit,ontheAgent’sbehalf,anyorall“NoSales”Reports(i.e.,Agent’sIAR
salesreportsthatincludenotransactionsofanykindasoftheSubmissionDeadline)ifAgent
hasnotalreadySubmittedthereport.
1.4. Agentacknowledgesandagreesthatitremainsfinanciallyliableandresponsibleforall
transactionsissuedbytheAgentduringeachSalesReportPeriodbutnotincludedinthe
Agent’sSalesReport.
1.5. WitheachSalesReportAgentwillauthorizeasettlementamountreflectingthemaximum
amounttobedrawnbyARCfromAgent’sdesignatedaccount.
1.6. AgentmustSubmittheSalesReporttoARCnolaterthantheSubmissionDeadline,whichis
11:59p.m.ESToftheTuesdayfollowingtheendoftheSalesReportPeriod.
1.7. OnlythoseSalesReportsreceivedbytheSubmissionDeadlinewillbeconsidered“timely
received.”IftheSubmissionDeadlinehaspassed,alloutstandingSalesReportsmustbe
Submittedimmediately.
1.8. AgentmustmakeTransactionalDataavailabletotheCarrier(s)towhichsuchdatapertains.
1.9. AllTransactionalDatamaybereviewedbyARCatanytimeduringoraftertheSalesReport
Period.
1.10. UponAgent’sSubmission(orresubmission)oftheSalesReport,ARCwillgeneratea
confirmationnumberforthereport,andtransmitthisnumbertotheLocationfromwhichthe
reportwassubmitted.
1.11. ARCwill,basedupontheSalesReportsubmittedbytheAgent,determinetheamountowedfor
thesalesperiod,andwilldrafttheAgent’sdesignatedbankaccountforsuchamount.Thedraft
willnotexceedtheamountauthorizedbytheAgent,orbepresentedforpaymentearlierthan
thefifthcalendardayafterthecloseoftheSalesReportPeriod.
1.12. ARCwillmakeavailableaweeklysummaryshowingalltransactionsandtheamountofthe
draft,nolaterthanthefifthcalendardayafterthecloseoftheSalesReportPeriod.Settlement
ofamountsowingwillbemadeintheauthorizedcurrency.
2. IntheeventARCdoesnotreceiveAgent’sSalesReport(s)bytheSubmissionDeadline,ARCwill
notifyAgentandthefollowing,asrelevant,willapply.
November7,2016
19
SectionK
2.1. WhereAgentHasEvidenceofTimelySubmissionofWeeklySalesReport:Ifyouhaveevidence
thatyousubmittedtheSalesReportontime,pleasecontacttheCustomerCareCenter.Inthis
situation,ARCwillnotassessacompensatoryfee.
2.2. WhereaMalfunctionatARCPreventsProcessingofSalesReport:Ifamalfunctionoremergency
atARCrendersARCunabletoprocessorreceivetheSalesReport,ARCwillpromptlynotify
Agentwithfurtherinstructions.Inthissituation,ARCwillnotassessacompensatoryfee.
2.3. WhereSalesReportRecalledbyAgent:Agentmay,atanytimebeforetheSubmissionDeadline,
recallaSalesReportwhichithasalreadysubmitted,inordertoenhanceorcorrectdata.
However,AgentmaynotrecallasubmittedSalesReportaftertheSubmissionDeadlineforthat
SalesReport,andanySalesReportrecalledpriortotheSubmissionDeadlinemustbe
resubmittedbytheSubmissionDeadline.IfarecalledSalesReportisnotresubmittedsothatit
isreceivedatARCbytheSubmissionDeadline,theAgentmustreauthorizeandresubmitthe
SalesReporttoARCviaIARbythenextbusinessdayafternotificationbyARC.
3. ConsequencesofFailuretoPayforDishonoreddraft(s),UnreportedSalesand/orImproperly
ReportedTransactions,andFailuretoTimelySubmitSalesReports
3.1. IfanyoftheactionsinofSubsections33.2,33.3,or33.4oftheARAoccurs,ARCwill:
3.1.1.WithdrawfromtheAgent,andallagentsandlocationsundercommonControlwiththe
Agent,allARCTrafficDocuments(paperformat)
3.1.2.NotifyCarriers
3.1.3.NotifySystemProviderstoinhibittheissuanceofARCTrafficDocuments(paperand
electronicformat)bysuchAgentandallagentsandlocationsunderCommonControlwith
theAgent.
3.2. OnceallamountsAgentowestoCarriersandARChavebeenfullypaid(including,butnot
limitedto,paymentofalldraftsdrawnbyARCanddishonoredbytheAgent’sbank),andall
reportshavebeensubmitted,unlessthereisanoutstandingnoticeofcancellationofthe
FinancialInstrument(orTrafficDocumentshavebeenremovedorissuanceprohibitedpursuant
toanotherprovisionoftheAgreement),ARCwillresupplytheAgentwithARCTraffic
DocumentsinaccordancewithSection23oftheARA.ARCwillalsonotifytheSystemProviders
thattheissuanceofARCTrafficDocumentsisauthorized,unlesstheCarrierhasalsotaken
actiontoterminatetheAgent’sappointmentpursuanttoSection11.5oftheARA.
4. IfAgentUnabletoSatisfyDebt
4.1. IftheAgentdoesnotsubmittherequiredSalesReport(s)andprovidefullpayment,orfailsto
makefullpaymentofallamountsowedtotheCarrierorARC(including,butnotlimitedto,
paymentofalldraftsdrawnbyARCanddishonoredbytheagent'sbank),onorbeforethe31st
calendardayafterthedateofARC'swrittennoticeofadefault,thisAgent’sARCAgreement
willterminateautomaticallyandwithoutfurthernotice.
4.2. Thefullamounttobepaidwithinthe31-dayperioddescribedaboveoranyextensiondescribed
inSection4.3mustinclude,butnotbelimitedto,allamountsowedfordishonoreddrafts,
UnreportedSalesandImproperlyReportedTransactions,compensatoryfeesandmissing
reports,regardlessofwhethersuchamountsand/orreportshavebeenspecificallyidentifiedin
thewrittennotice.
November7,2016
20
SectionK
4.3. ARCmayextendthetimeforAgenttomakefullpaymentandavoidterminationoftheAgent’s
ARA,if:
4.3.1.AgenthassurrenderedallARCTrafficDocuments(paperformat)andhasceasedtoissue
ARCTrafficDocumentsinelectronicformatand,onorbeforesuch31stcalendarday;
4.3.2.AgenthasprovidedallmissingSalesReports;and
4.3.3.AgenthasmadeapartialpaymentinanamountdeemedappropriatebyARC.
4.4. Indeterminingwhetherornottoextendthetimeforfullpayment,ARCwillconsiderthe
followingfactors,amongothers:thecauseofthedishonor,UnreportedSalesorImproperly
ReportedTransactions,ormissingreport;thepaymentscheduleproposed;thecurrent
financialconditionoftheAgent;andanyproposedremedialaction.
4.5. Anextensionoftimeonthetermsprovidedintheprecedingparagraphswillbeavailabletoall
Agents.
4.6. Inconjunctionwiththeextensionoftimeprovidedintheforegoingparagraphs,theAgentmay
obtainauthorityfromoneormoreoftheCarriersinvolvedtoconverttheAgent'scash
indebtednesstoeachsuchCarrierintoindividuallysponsoredcreditplans,therebytransferring
theindebtednessfromARCtosuchCarrier.UponreceiptofwrittennoticefromtheCarrier
concerned,ARCwillmodifyorwithdrawthenoticeoftermination,asappropriate.
4.7. UpontheAgent'scompliancewiththeforegoingparagraphs,ARCshallresupplytheAgentwith
TrafficDocumentsinaccordancewithSection23oftheARA.Inaddition,ARCwillnotifyall
SystemProvidersthattheAgentmayissueARCTrafficDocuments,andtheCarriersmay,in
theirindividualdiscretion,notifytheSystemProviders,ifactionistobetakenpursuantto
Section11.5oftheARA.
4.8. UponterminationoftheAgreementpursuanttothisSection,ARCwilltakeactionasdirectedin
Subsection6.7and6.8oftheARA.InadditiontoanyamountsdueandowingbytheAgent
undertheARA,AgentshallalsobeliabletoARCforanyandallattorney’sfees,andalsoforany
additionalcostsactuallyincurredbyARCforthecollectionofsuchsumsowingbytheAgent.
UponterminationoftheAgreementunderthisSection,ARCmay,initssoleandabsolute
discretionandwithoutanyotherseparatebasis,terminateallagentsincommonControlwith
theAgent.
5. ARCwillrequireeachAgenttowhichnoticeofdefaultunderSubsections33.2,33.3,and33.4has
beensenttohaveexecutedonitsbehalfandfiledwithARCthe"PersonalGuarantyofPaymentand
Performance"assetforthinSectionGoftheIAHiftheAgent’sfinancialorreportingirregularities
underSubsections33.2,33.3,and33.4oftheARAcreateadangerofsubstantiallosstoARCand/or
theCarriers.SuchexecutionandfilingwillbeaconditionprecedenttoanAgent'srighttouseARC
TrafficDocuments.
November7,2016
21
SectionL
SectionL:VariableRemittance
1. ThefollowingVariableRemittanceoptionisavailableasanalternativetothecashsalestandardremittance
schedule.Thisoptionisintendedtoprovideflexibilityforcarriersandagentswhomaychoosetohavecashsales
processedinanalternatemanner.
1.1. DirectFormofPayment(DP)
2. Section27oftheAgentReportingAgreementprovidesthatifaproposalismadebyanAgentfortheuseof
paymenttermsotherthanthestandardremittanceschedule,theCarrierwillconsidertheproposalingoodfaith;
however,thecarrier'srefusaltoenterintosuchanarrangementshallnot,inandofitself,constituteevidenceof
badfaith.
3. VariableRemittanceOption
3.1. DirectFormofPayment(DP):TheDirectFormofPayment(DP)optionallowstheagenttosubmitaDPsale
intheweeklyreportwithoutARCcollectingthefundsforthecarrier.Settlementisstrictlybetweenthe
carrierandtheagent,althoughARCdoessettlethecommissionamounts.
4. ControlProcedures
4.1. ARChasincorporatedcontrolprocedurestoprovidequalityassurancefortheVariableRemittanceoption.An
onlinesystemensuresthatthesetransactionsareprocessedinaccordancewiththeinstructionssubmitted
bythecarriertoARC.ThisisaccomplishedthroughaCarrierAgentPayment(CAP)file.
4.2. Foreachcarrier/agentarrangementtheCAPfileincludesthefollowinginformation:
4.2.1.ARCCodeNumber
4.2.2.CarrierIdentification
4.2.3.Accountnumber(determinedbythecarrier)
4.2.4.Paymentplan
4.2.5.InceptionandTerminationdates
5. OnceacarriernotifiesARCthataVariableRemittanceoptionwillbeestablishedwithanagent,ARCwillinclude
thisinformationintheCAPfiledatabase.Whenanagentsubmitsaweeklyreportcontainingatransactionwitha
VariableRemittanceaccountnumber,thisnumberisthenverifiedbyaccessingtheCAPfiledatabase.ARCwill
usetheCAPfiledatabasetoverifyeveryVariableRemittancetransaction.
6. ARCProcessing
ARCwillsettlethecommissionamountintheweekduringwhichthetransactionisprocessed.Therefore,since
theagenthasalreadyreceivedthecommission,theamountowedtothecarrierwillbetheTotalSaleamount.
November7,2016
22
SectionL
ExampleofVariableRemittanceTransactionin
AgencySalesSummary
AirlinesReportingCorporation
AgentSalesSummary
REPORTID─ARC999-99-X
PAGE─1
REFNR─xx-06-4-7
RPTPED─06/25/00
9987542-5ABCTRAVEL
A/L
TICKET
NUMBER
P
P
ERR
CDS
I TOTAL
C SALE
COMMISSION
AMT CODE
FARE
TAX NET
AMT CD REMIT
998 8400000001 DP 200.00
181.8
14.55 8.00
18.18 10
14.55
998 8400000002 DP 300.00
272.7
21.82 8.00
27.27 10
21.82
2
-
3
-
998 8400000003 250.00
227.2
22.73 10.00
22.73 10
227.2
7
7
998 8400000004 X
400.00
363.6
40.00
11.00
36.36
10
360.0
4
0
998 8400000005 700.00
636.3
63.64 10.00
63.64 10
636.3
6
6
998 8400000006 108.00
98.1
7.85
8.00
9.82
10
7.85
8
-
998 8400000007 324.00
294.5
29.46
10.00
29.45
10
297.5
5
45
998 8400000008
250.00
227.2
22.73 10.00
22.73 10
227.2
7
7
998 8400000009 270.00
245.4
19.64 8.00
24.55 10
19.64
5
-
998 8400000010 270.00
245.4
19.64 8.00
24.55 10
19.64
5
-
998 8400000011 270.00
245.4
19.64 8.00
24.55 10
19.64
5
-
998 8400000012
432.00
392.2
39.22
10.00
39.27
10
392.7
3
8
--------------------------------------------------------------------------------------------------------------------------------------------------------NETCASH
3274.00
NETCASH
3270
CASHSALES 327.00
--------------------
LESSCOMMISSION
320.92
NETCREDIT
1418.0
CASHREFUNDS
0.00
0
TOTAL
3774.0
NETADJUSTMENTS 0.00
NETREMITTANCE
2953 ADD's 0.00
0
FARES
3430.4
NETCASH
327.00
0343.6 AGENTCASHTAPE COLLECTIONAMOUNT TAXES
327.00
2035.08
00.00
MAXAUTHAMOUNT 2035.08
CANPEN
ADDEDAMOUNTDUE 0.00
TOTAL
3774.0 CREDITCARDSALES 0.00
CREDITREFUNDS 0.00
0
VARREMITSALES 0
AUTHNBR000625
NETCREDIT AUGCOMMISSIONPCT 9.08 NETCREDITTAPE ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
VARIABLEREMITTINGPLAN
COMMISSIONPAID FARES
COLLECTIONAMT
DIRECTFORMOFPAYMENT(DP)
TOTAL
November7,2016
23
36.37
454.55
54.55
0.00
0.00
SectionM
SectionM:AdministrativeandCompensatoryFees
1. AgentsarerequiredtopayanadministrativefeetoARCforeachAgent’sLocationsinorderto
defrayaportionofthecostsassociatedwithoperatingtheARCSettlementPlan(ASP)andhalfof
thecostsassociatedwithoperatingtheTravelAgentArbiterProgram,Inc.Theadministrativefee
hastwoparts:anannualfixedamountforeachLocationandafeefortransactionsprocessed
throughtheASPforeachLocation.
2. Thetransactionfeeisdeterminedbymultiplyingthefeeamounttimesthenumberoftransactions
processedateachofAgent’sauthorizedLocationsduringadefined13-weekperiod(referredtoas
“quarterly”).Thetransactiontypesincludesales(auditor’scoupon),refunds,CreditMemos,Debit
Memos,exchanges(primary/companion/conjunction),recallcommissionstatements,Agency
AutomatedDeductions(AADs),ElectronicMiscellaneousDocument(EMD),andothertransactions
thatmaybeapprovedbytheARCBoardofDirectors.
3. TheannualfixedamountandthefeeamountchargedpertransactionaredeterminedbytheARC
BoardofDirectors.ARCwillnotifyeachAgentoftheannualfixedamountandthepertransaction
feeamountforthefollowingyearbeforetheendofthecurrentcalendaryear.
4. AgentauthorizesARCtocollecttheadministrativefeebyissuingadraftagainsttheAgent’s
designatedbankaccount.
5. AnnualFixedAmount
5.1. TheannualfixedamountwillbecollectedbyARC,whichwilldraftthedesignatedaccountof
eachLocationinJanuaryofthecurrentyear,oronsuchotherscheduleastheBoardof
Directorsadopts.
5.2. ForanewlyaccreditedAgentaddedtotheARCAgencyListafterthedatetheannualfixedfeeis
normallypaid,ARCwilldraftthedesignatedaccountoftheAgentforthepro-ratedannualfixed
amount.ForaLocationaddedtotheARCAgencyListafterthedatetheannualfixedfeeis
normallypaid,theannualfixedamountwillbeincludedwiththeapplicationfee.
6. TransactionFee
6.1. Thetransactionfeewillbeassessedandcollectedonaquarterlybasisoranalternate
assessmentperiod(s)asbeapprovedbytheARCBoardofDirectors.ARCwilldraftthe
designatedaccountofeachLocation.ForAgentsundergoingownershipchangestonewowners
orentities,ARCwillassessandcollectatransactionfeefromthetransferringownerfor
transactionsprocessedattheLocationuptotheeffectivedateofthetransferofownership.As
oftheeffectivedateoftheownershiptransfer,ARCwillassessandcollectthetransactionfee
fromthenewowneroftheLocation.
7. CompensatoryFees
7.1. ThecompensatoryfeewillbecalculatedandchargedbasedonaformulaapprovedbytheARC
BoardofDirectors.ARCwillnotifytheAgentoftheamountandthedateonwhichpayment
willbedue.
November7,2016
24
SectionM
7.2. AgentacknowledgesandagreesthatARCwillassessacompensatoryfeeforeachdishonored
draftforpaymentofSalesReportstodefrayprocessingcostsassociatedwiththehandlingof
dishonoreddraft,interestexpense,andspecialservicecostsdescribedinSection36.12ofthe
ARA.
7.3. AgentacknowledgesandagreesthatARCwillassessacompensatoryfeeforUnreportedSales
andImproperlyReportedTransactionsandfailuretotimelyfileSalesReportstodefraycosts
associatedwiththeprocessingandhandlingoftheresolutionofUnreportedSalesand
ImproperlyReportedTransactions,costsattributabletoAgent’sfailuretotimelySubmitaSales
Report,andspecialservicecostsdescribedinSection36.12oftheARA.
7.4. ARCwillnotassessmorethanonecompensatoryfeetoAgentperanygivenlateormissing
SalesReport.
7.5. AgentauthorizesARCtocollectthechargebyissuingadraftagainsttheAgent’sdesignated
bankaccount.Alternatively,theAgentmustmakepaymentdirectlytoARCifrequiredbyARC
notice.
November7,2016
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SectionN
SectionN:AssociateBranchSupplementaryAgreement
Agent’sGuarantyofPaymentandPerformanceofAssociateBranchObligations
AdditionalRequirementsforAssociateBranch
InadditiontotherequirementsintheARA,AgentseekingapprovalforanAssociateBranchmust:
1.SubmitanapplicationforapprovalofanAssociateBranchintheformrequiredbyARC
2.ProvideandmaintainaFinancialInstrumentintheformandamountrequiredbyARC,asdescribedinSectionD
oftheIAH.
2.1.AtnotimewilltheAgent’sFinancialInstrumentbelessthan$70,000ormorethan$150,000,unlessAgent
becomessubjecttotherequirementsofSection34oftheARA.
3.ExecutetheCorporateGuarantyincludedinthisSection.
AgentandtheownersofeachAssociateBranchmustexecutetheAssociateBranchAgreementinthisSection.
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SectionN
ASSOCIATEBRANCHSUPPLEMENTARYAGREEMENT
1.
ThisSupplementaryAgreement(Supplement)coversthetermsandconditionsfor
___________________________(Agent),ARCnumber_____________________,tooperateanAssociate
Branch,theownershipofwhichisdifferentfromtheownershipofAgent.Thepartiesidentifiedbelowagreeas
follows:
2.
ThisSupplementwillbecomeeffectiveonthedateofARC’swrittenapprovalofAgent’sApplicationfor
AssociateBranch,orthelastdatesignedbelow,whicheverislater.ThisSupplementwillremainineffectaslong
astheAgent’sARAisineffect,oruntilAssociateBranchisterminatedand/orremovedfromtheARCList,
whicheveroccursfirst.
3.
TheownershipofAgent’sAssociateBranch_________________[nameofAssociateBranchentity]at
______________,isauthorizedbyARCtobedifferentfromtheownershipoftheAgentsubjecttothefollowing
conditions:
3.1 TheAgent,ortheowningEntityofAgentmustatalltimesholdsomeownershipinterestinthe
AssociateBranch.
3.2 NointerestintheownershipofAssociateBranchmaybetransferredorassignedwithouttheprior
writtenconsentofARC.IfatransferismadewithoutARC’spriorwrittenconsent,thisSupplement
willautomaticallybeterminated,andAssociateBranchwillberemovedfromtheARCAgencyListand
ARCshalltakeactionasdirectedinSubsections6.7and6.8oftheARA.
3.3 IfatransferorassignmentoftheownershipofAgentismadewithoutARC’spriorwrittenconsent,
thisSupplementandAgent’sARAmaybeterminatedandARCmaytakeactionasdirectedin
Subsections6.7and6.8oftheARA.
3.4 TheowningEntityofAgentunconditionallyguaranteesallobligationsoftheAssociateBranchtoARC
intherequiredcorporateguarantyinthisSection.Executionoftheguarantyisaconditionprecedent
totheeffectivenessofthisSupplementandapprovaloftheAssociateBranchapplication.
3.5 ThisagreementshallinnowayaffectanyCarrier’sindividualrightswithregardtoitsappointmentof
Agent,AssociateBranch,oranyotherLocationaffiliatedwithAgentorAssociateBranch.Exceptas
notedherein,allothertermsoftheARAshallremaininfullforceandeffectasifunmodified.
3.6 AssociateBranchherebyagreestobeboundbythetermsandconditionsoftheARA.
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SectionN
3.7AssociateBranchacknowledgesandagreesthatAgentisauthorizedtoaccess,obtainandviewall
applications, requests and other forms and documents that may be submitted by Associate Branch to
ARC,includingbutnotlimitedtoTransactionalDataissuedbyandreportedintheSalesReportfor,orby
the Associate Branch, in the same manner through which Agent may access, obtain and view such
informationforanyofAgent’sotherLocations.
4. AgentandAssociateBranchacknowledgeandagreethatARCreservestherighttoamendormodify
thetermsofthisSupplement,uponreasonablenoticetoAgentandAssociateBranch.
ThisSupplementmaybeexecutedinmultiplecounterparts,eachofwhichtakentogethershallconstituteoneand
thesameagreement.Further,signaturesreceivedviafaxorviascanneddocumentattachedinanemailshall
constituteoriginalsignaturesandshallbetreatedwiththesameforceandeffectasoriginalsignatures.
Acceptedandagreedbythepartiesidentifiedbelow(Agent,AssociateBranchentityandARC):
AGENTAIRLINESREPORTINGCORPORATION
LegalName____________(onbehalfofitselfandonbehalfofeach
CarriersignatorytotheARCCarrierServices
Agreement)
Signature______________________Signature______________________________
(Authorizedowner/officer)(Authorizedofficer)
PrintedName_________________
Title____________________Title_____________________________
_______________________________________________________________
(Date)(Date)
ASSOCIATEBRANCHentity
LegalName_________________
Signature______________________
(Authorizedowner/officer)
PrintedName___________________
Title_____________________
Date___________________________
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SectionN
AssociateBranch
GuarantyofPaymentandPerformance
SectionI:Applicability
TheprovisionsofthisguarantyapplywheneverGuarantor(asdefinedbelow)isrequiredtoexecutea"Guarantyof
Performance of Agent's Agreement" (Guaranty) relating to the actions of _______________, [Legal Name of
Associate Branch], accredited by ARC as an Associate Branch pursuant to Section 39.19.4 of the Agent Reporting
Agreement(ARA)andSectionNoftheIAH,whichisincorporatedbyreferenceintheARA(“AssociateBranch”).
SectionII:Guarantor
___________________________________________________________________________(“Guarantor),
[PrintLegalNameoftheowningEntityoftheAgent]
istheowningEntityof___________________________________________________________(“Agent”)
[PrintLegalNameofAgent]
designated with ARC Number_______________________, the Agent under the ARA between Agent and Airlines
ReportingCorporation,acorporationorganizedunderthelawsofDelaware(“ARC”).
TheAgreementrequiresthatGuarantorguaranteethepaymentandperformanceobligationsofAssociateBranch
identified in Section I of this Guaranty under the terms of the ARA. Accordingly, as a condition imposed for
continued inclusion of Guarantor on the ARC Agency List and in consideration of the benefit to Guarantor of the
effectivenessoftheARA,Guarantoragreesasfollows:
SectionIII:Guaranty
(i)
ExceptasexpresslysetforthhereinGuarantorherebyabsolutely,irrevocablyandunconditionallyagreesto
andherebydoesguaranteetoARCthefull,promptandcompleteperformanceandpaymentbyAssociateBranchof
allofitsobligationsundertheARA(allsuchobligations,collectively,the“Obligations”).Subjecttothetermshereof,
GuarantoragreesthatthisGuarantyisaguarantyofperformanceandpaymentandNOTofcollectionandthatthe
liability of Guarantor is primary and unconditional. Accordingly, Guarantor agrees to pay the Obligations to ARC
uponreceiptofawrittendemandtherefor,withoutanywithholding,deduction,counterclaim(unlessacompulsory
counterclaim)orset-offforanyreasonoronanyaccountwhatsoever,subjecttothetermshereofandprovidedthat
ARCshallnotdemandanyoftheObligationsuntiltherehasbeenadefaultbyAssociateBranchonsuchObligations
andnoticeofsuchdefaulthasbeenreceivedbyGuarantorandanyapplicabletimeandgraceperiods(assetforthin
paragraph(v) of this Section III) have expired. Except for the notice and time and grace period requirements set
forthintheprecedingsentence,thisguarantyisinnowayconditionaluponanyrequirementthatARCfirstattempt
to collect any of the Obligations from Associate Branch or resort to any security or other means of obtaining
paymentoftheObligations.
(ii)
Guarantorherebywaiveseachandeverydefensethatunderprinciplesofguarantee,suretyshiporother
similar law would otherwise operate to impair, delay or diminish Guarantor’s obligations hereunder; provided,
however,thattheforegoingwaivershallnotinanywaywaiveorprejudiceanyrightordefenseotherwiseassertable
inrespectofanyclaimedObligation.
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SectionN
(iii)
No delay on the part of ARC in exercising any of its options, powers or rights shall constitute a waiver
thereof.UponmakinganypaymentorperformancewithrespecttoanyObligationshereunder,Guarantorshallbe
subrogated to the right of ARC against Associate Branch with respect to such payment; provided that Guarantor
shallnotenforceanypaymentrightbywayofsubrogationuntiltheunderlyingObligationhasbeenpaidinfull.
(iv)
Guarantor’sobligationshereundershallremaininfullforceandeffectuntilalloftheObligationshavebeen
completelyperformedandpaidinfull.
(v)
Guarantorherebywaivesacceptancehereof,presentment,demand,protest,andanynoticenotprovided
forherein,aswellasanyrequirementthatatanytimeanyactionbetakenbyanycorporationorpersonagainst
AssociateBranchoranyothercorporationorperson,exceptthatnopaymentshallbesoughtfromGuarantorunder
thisGuarantyunlessanoticeofdefaulthasbeenservedtoGuarantorprovidingforaminimumcureperiodof30
calendardaystoremedysuchdefaultandindicatingARC’sintentiontoclaimunderthisGuarantyintheabsenceof
remedywithinsuchcureperiod.
(vi)
Guarantor represents, warrants and covenants to ARC that this Guaranty (i) has been duly authorized,
executedanddeliveredbyGuarantor,(ii)constitutesalegal,validandbindingobligationofGuarantorenforceablein
accordance with its terms, except as the enforceability may be limited by bankruptcy, insolvency or other similar
lawsaffectingtheenforcementofcreditors’rightsgenerallyandbyequitableprinciplesrelatingtotheavailabilityof
equitableremedies,(iii)doesnotandwillnotviolateorconflictwithanyofGuarantor’sorganizationaldocuments,
andwillnotviolateorconflictwithanymaterialagreementbywhichitisbound,oranylawtowhichGuarantoris
subject, nor is any consent or approval required that has not been received or that will not be obtained in
connectionwiththeexecution,deliveryorperformance,validityorenforceabilityofthisguaranty.
(vii)
Any and all disputes regarding the obligations of the Guarantor to ARC shall be resolved by the Travel
AgentArbiter,anarbitrationforumestablishedasanindependententity,inaccordancewiththerulespromulgated
and published by the Travel Agent Arbiter, and the decision shall be final and binding; provided, however, that
neitherARCnorGuarantorisprecludedfromseekingjudicialrelieftoenforceadecisionoftheTravelAgentArbiter,
or to compel compliance with this Guaranty prior to the filing of an answer in a proceeding concerning such
requirementbeforetheTravelAgentArbiter.
(viii)
ThisGuarantyshallbeconstruedandinterpretedaccordingtotheinternallawsoftheCommonwealthof
Virginia, excluding any choice of law rules that may direct the application of the laws of another jurisdiction. Any
suit,action,orproceedingseekingtoenforceanyprovisionof,orbasedonanymatterarisingoutoforinconnection
with, this Guaranty may only be brought in the United States District Court for the Eastern District of Virginia,
Alexandria Division (or, if jurisdiction is there lacking, in a state court of cognizant jurisdiction in the County of
Arlington,CommonwealthofVirginia).Guarantorconsentsandsubmitstothejurisdictionofsuchcourts(andofthe
appropriateappellatecourttherefrom)inanysuchsuit,actionorproceedingandirrevocablywaives,tothefullest
extentpermittedbylaw,anyobjectionthatitmaynoworhereafterhavetothelayingofthevenueofanysuchsuit,
actionorproceedinginanysuchcourtorthatanysuchsuit,actionsorproceedingwhichisbroughtinanysuchcourt
has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on
Guarantoranywhereintheworld,whetherwithinorwithoutthejurisdictionofanysuchcourt.
SectionIVEffectivenessofGuaranty
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SectionN
This Guaranty is of continuing effect, and its effectiveness, and the Guarantor’s liability hereunder, survives
termination of the ARA, except as modified pursuant to Section V below, and need not be re-executed upon
amendmentoftheARA,includingsubsequentrevisionsandreissuesthereof.
SectionV:ModificationofGuaranty
Thisguarantymaynotbemodifiedorterminatedorally.
AuthorityandconsentareherebyexpresslygivenARCfromtimetotime,andwithoutanynoticetoGuarantor,to
giveandmakesuchextensions,renewals,settlements,andcompromisesasitmaydeemproperwithrespecttoany
oftheindebtedness,liabilitiesandobligationscoveredbythisguaranty;andthereleasebyARCofanyotherEntity,
or settlement with any other Entity, or the revocation or impairment of this guaranty with respect to Guarantor,
shallnotoperatetoprejudicetherightsofARCagainsttheGuarantor.
It is understood that this is a continuing absolute and unconditioned guaranty, co-extensive with the ARA as
presentlyconstitutedandasmaybehereafteramended,includingsubsequentrevisionsandreissuancesthereof.
[Thenextpageisthesignaturepage.]
November7,2016
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SectionN
Faxedandscannedsignaturesshallconstituteoriginalsignaturesandshallbetreatedwiththesameforceand
effectasoriginalsignatures.
ThisDocumentMustBeSignedinthePresenceofaNotary.
________________________________________________
(PrintedNameofGuarantor)
_______________________________________________
(Address)
________________________________________________
(City,State,ZipCode)
__________________________________
(TelephoneNumber)
__________________________________
(SignatureofGuarantor)
(FORNOTARYUSEONLY)
Countyof___________________________________Stateof___________________________________
Onthisdayof,20,
_______________________________________
(PrintNameofAboveGuarantor)
appearedbeforemeand,havingbeendulyswornbyme,signedtheGuarantyinmypresence.
_______________________________________________
NotaryPublicSignature
NOTARYSEAL
Mycommissionexpireson
____________________________
November7,2016
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SectionO
SectionO:AdditionalOfficeTypes
1.
SatelliteTicketPrinterLocations
Effective03/15/2010,ARCstoppedaccreditingnewSTPlocations.
A Satellite Ticket Printer (STP) is a location whose sole ARC travel-related function is the delivery of ARC Traffic
DocumentsandotherrelatedTrafficDocumentstocustomersofanARC-listedagentbymeansofaticketprinting
device. The STP is an attended printer not intended to service the general public and is located in a private area
within a business-type concern. The electronic transmission of all traffic documents will be controlled by a host
authorizedagencylocation,andthedeliverywilloccurattheSTP).
TheSTPlocationissolelyaticketdeliverylocation.Othertravel-related,retailfunctions,suchas,butnotlimited
to,live,orin-persontravelpromotion,reservations,counselingandsales,acceptingpaymentorprovidingrefunds
fortickets,cannotbeperformedatthislocation.
TheAgentassumesfullandabsoluteliabilityforthepossession,use,andissuanceofARCTrafficDocumentsatthe
STP location, and for any and all damage, expense, or loss (including attorneys’ fees) experienced by ARC, the
participating Carriers, their officers, representatives, or employees on account of the loss, misapplication,
misdirection, theft, or forgery of ARC Traffic Documents at the STP location and ARC documents in transit to and
fromtheSTPlocation.
2. CentralizedServiceLocations(IndependentandBranch)
EffectiveJuly1,2013,ARCwillnolongerbeaccreditingnewCSL.
Acentralizedservicelocation(“CSL”)isanauthorizedindependentorbranchofficelocationwhoseprimarypurpose
istoallowAgenttodirectlyprovide,ortouseanotherARC-accreditedtravelagenttoprovide,travelservicestoa
specified corporate account or web site account at an approved centralized location. The CSL will not serve the
generalpublicandtheofficeorspacewheretheCSLislocatedmustnotbeopenandaccessibletothegeneralpublic
anditmustnotbeidentifiedasaretailtravelagency.
TheAgentassumesfullandabsoluteliabilityforthepossession,use,andissuanceofARCTrafficDocumentsatthe
CSL,andforanyandalldamage,expense,orloss(includingattorneys’fees)experiencedbyARC,theparticipating
Carriers,theirofficers,representatives,oremployeesonaccountoftheloss,misapplication,misdirection,theft,or
forgeryofARCTrafficDocumentsattheCSLandARCdocumentsintransittoandfromtheCSL.
3. TicketingFulfillmentLocations
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SectionO
Aticketingfulfillmentlocation(“TFL”)isabranchofficelocationwhosepurposeistoserveasacentralizedticket
printingofficefortheAgent.TheTFListofunctionasaseparate,non-saleslocation.Nosalesactivity,suchas,but
notlimitedto,travelpromotion,counselingandreservations,willoccuratthislocation.
1.
The ownership of the TFL location may not be transferred independently of the transfer of the HOL
ownership.
2.
ThesameTFLlocationmayoperateasaTFLlocationformultipleARCentitiesprovidedeachentityhas
appliedandreceivedapprovalfortheTFLlocationtooperateasitsTFLbranchoffice.TheTFLlocationwill
receiveaseparateARCNumberforeachARCentityitrepresents.
3.
ARC will deliver to Agent, or Agent designated location, Traffic Documents intended for use at the TFL
location. Agent may order and maintain a supply of ARC Traffic Documents at the TFL according to the
requirementsinSectionBoftheIAH.
4.
TheAgentwillappointanattendantattheTFLlocationthatisfamiliarwithallfacetsofoperatingtheTFL,
including the security and accountability of the ARC Traffic Documents. The attendant is the person
responsible for maintaining the security and integrity of the ARC Traffic Documents at the TFL location
and will be the primary contact for ARC at the TFL location. One individual may serve as the appointed
attendantformultipleARCentities.
5.
The Agent must notify ARC, in writing, of the removal or replacement of Agent’s attendant(s) and shall
provide the name of each new attendant and such other information ARC may reasonably require
regardingtheattendant(s).
6.
The ARC Traffic Documents at the TFL will only be issued as passenger and flight coupons and the
transactionshallbeincludedintheIARSalesReportofanaccreditednon-TFLoftheAgent.
7.
The TFL location must comply with all rules or ARC Traffic Documents detailed in the Agent Reporting
Agreement,includingthesecurityrulesinSectionBoftheIAH.
8.
The Agent, regardless of any security measures taken, assumes full and absolute liability, including
attorneys’fees,foranyandalldamage,expenseorlossexperiencedbyanyCarrier,itsofficers,agentsor
employeesfortheloss,misapplication,misdirection,theftorforgeryofARCTrafficDocumentsassigned
to the TFL’s ARC Number. Notwithstanding the Agent’s absolute liability for documents assigned to the
TFLlocation,AgentmustensurethattheTFLmeetsallsecurityrequirements,includingSectionBofthe
IAH.
November7,2016
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