Your travel agency ("Agent") has entered into the Airlines Reporting Corporation Agent Reporting Agreement ("ARC Reporting Agreement") with the Airlines Reporting Corporation ("ARC"), whereby Agent has been appointed ("Agent's Appointment") to act as an agent for US Airways, Inc. ("US Airways") in the sale of air transportation. Any agency's sale of air transportation on US Airways shall evidence a mutual agreement that the ARC Reporting Agreement, as applicable between Agent, US Airways and ARC, shall be supplemented as set forth below, and as such, shall constitute additional terms and conditions of Agent's Appointment.

Appointment

Agent's locations that are approved by ARC (the "Agency Locations") will be reviewed independently by US Airways on an ongoing basis. Such review may include, without limitation, an on-site inspection of any of the Agency Locations by US Airways to determine that Agent's operations are in compliance with the requirements that US Airways has established for its agents in the sale of air transportation. In its sole discretion, US Airways may appoint, or terminate its appointment of, any of the Agency Locations. Further, in its sole discretion, at any time, US Airways may terminate Agent's Appointment immediately upon written notice to Agent. If Agent's Appointment is terminated, Agent may not act in an agency capacity whatsoever with respect to the sale of air transportation on US Airways. If any of the Agency Locations are terminated, Agent may not act in any agency capacity whatsoever with respect to the sale of air transportation on US Airways from the terminated locations.

Commissions

Unless otherwise specified by US Airways, US Airways will not pay commissions to Agent for the sale of air transportation in accordance with US Airways' published commission schedule. US Airways, in its sole discretion, reserves the right to modify its commission schedule at any time.

Compliance with policies & procedures

Agent shall strictly adhere to US Airways' rules, regulations, requirements and tariffs in the sale of air transportation on US Airways including, without limitation, reservation and booking policies, CRS procedures, and requirements relating to the issuance, re-issuance or refund of any ticket calling for transportation on US Airways.

Display of US Airways content on agency websites

Agent acknowledges compliance with all government rules and regulations. Agent is responsible for reading, understanding and complying with all United States laws and regulations regarding the advertising, display, selling and ticketing of codeshare flights, including proper disclosure of the carrier actually operating such codeshare flights.

Dividend Miles/promotional programs

In connection with US Airways' Dividend Miles Program and/or other promotional programs, Agent agrees to comply with all rules, regulations, procedures and tariffs governing such programs, including the issuance of promotional tickets and boarding passes. Agent acknowledges that the purchase, sale or barter of promotional certificates or coupons, Dividend Miles mileage or Dividend Miles tickets is strictly prohibited and that Agent's involvement in any of these activities, whether direct or indirect, shall subject Agent to debit memos for any losses sustained by US Airways due to this activity and/or the termination of Agent's Appointment and/or legal proceedings by US Airways. Agent further acknowledges and understands that any fraud or abuse concerning Dividend Miles mileage or Dividend Miles tickets on the part of Agent and/or Agent's customers may subject Agent's customers to appropriate administrative and/or legal action by US Airways, including, without limitation, the forfeiture of all tickets issued against accrued mileage in the member’s account, as well as cancellation of the account. Agent further understands that Dividend Miles award tickets that have been purchased, sold or bartered are void and use of such tickets may result in the tickets being confiscated by US Airways, the passenger's trip being stopped or interrupted, and the passenger being required to purchase a ticket to continue travel.

Hidden-city ticketing; Beyond-point ticketing; Back-to-back

Agent acknowledges that hidden-city ticketing, beyond-point ticketing, back-to-back ticketing and cross-border ticketing are in violation of US Airways' Conditions of Carriage and tariffs and other rules and regulations, and that if Agent sells such tickets, Agent will be in violation of these rules, regulations and tariffs. It is the responsibility of Agent to know its customers and to ensure that ticketing done by Agent is not for hidden-city ticketing, beyond-point ticketing, back-to-back ticketing or cross-border ticketing. Audits by US Airways that show that Agent has engaged in these practices shall subject Agent to debit memos to recover the difference between the applicable fare and the fare actually used and/or the termination of Agent's Appointment.

Prohibited booking practices

Agent acknowledges that the following booking practices are in violation of US Airways’ rules and regulations, as amended by US Airways from time to time at its sole discretion, and that if Agent engages in such booking practices, Agent will be in violation of these rules and regulations:
duplicate bookings, including duplicate bookings in multiple CRSs;
passive segment bookings;
speculative bookings in anticipation of sale where no confirmed passenger exists;
fictitious bookings for productivity purposes;
bookings without a valid, full first name and last name (initials in the name field are not acceptable);
failure to cancel bookings immediately following notice of intent not to travel; and
churning or repeatedly rebooking and canceled segments.

Audits by US Airways that show that Agent has engaged in the above activity shall subject Agent to service charges and/or debit memos to recover the actual costs incurred by US Airways as a result of such violations, including, without limitation, CRS fees and lost revenue from spoiled inventory.

Use of the US Airways identification plate

US Airways' validation plate is the sole property of US Airways, and Agent shall surrender it upon demand by US Airways or ARC or their representatives. Agent shall not use US Airways' validation plate or US Airways' auto-validation in Agent's CRS, for the issuance of tickets or any other traffic documents that specify transportation on any airline that has refused to appoint, or has terminated its appointment of, Agent. Further, Agent shall not issue tickets calling for transportation on US Airways on behalf of any other travel agency location for which US Airways has refused or terminated its appointment, including any of the Agency Locations. Agent shall not validate tickets on US Airways that call for transportation on carriers that do not maintain a ticketing and baggage interline agreement with US Airways.

Debit memo

In addition to the rights and remedies available to US Airways under the ARC Reporting Agreement, if Agent is in violation of the ARC Reporting Agreement or this Supplement, US Airways may debit Agent for any deficiency or any loss incurred by US Airways by reason of such violation and/or may immediately terminate Agent's Appointment upon notice to Agent. Administrative Processing Fee. Each debit memo issued by US Airways is subject to a service fee, and Agent agrees to pay the service fee included as part of any debit memo issued to Agent. Payment of Debit Memos. Agent agrees to pay or reconcile all debit memos issued by US Airways within thirty (30) days of the date of issuance. In order to comply with Visa/MasterCard regulations that prohibit charging a cardholder’s account more than once for the same transaction, US Airways no longer accepts credit cards as a form of payment for a debit memo. Additionally, in an effort to streamline our payment application process and reduce costs, US Airways no longer accepts checks as form of payment for debit memos. Effective October 1, 2003, all payments related to debit memos must be submitted to US Airways using the ARC Interactive Reporting System (IAR). Any check or credit card payment received directly by US Airways after October 1, 2003, will result in the assessment of a $50 service charge to cover processing.

Agency free & reduced-rate travel

Agent shall comply with US Airways' applicable rules, regulations and tariffs concerning Agency free travel and reduced-rate travel privileges. Agent's failure to comply with these rules, regulations and tariffs shall subject Agent to debit memos by US Airways for an amount equal to either the cost of the ticket, or the difference between the fare paid and the applicable fare, as appropriate, and/or termination of Agent's Appointment. Reduced-rate or free passenger travel must meet US Airways' eligibility requirements at the time of travel in order to be legitimate.

Ticket fraud

Agent shall not engage in fraudulent ticket activity, including, without limitation, the altering of flight coupons for non-qualifying discount travel or back-dating tickets. Agent's failure to comply with these requirements shall subject Agent to appropriate debit memos and/or the termination of Agent’s Appointment by US Airways.

Notices

In addition to the methods for sending notice provided by the ARC Reporting Agreement, any notices authorized or permitted to be given by US Airways to Agent under this Supplement or the ARC Reporting Agreement may, if Agent has installed at any of the Agency Locations a computerized reservation system ("CRS"), be sent via the direct reference system of such CRS, and any notice so given shall be deemed effective as of 12:00 p.m. (local time for the Agency Location in question), on the first business day immediately following the date in which US Airways inputs the notice into the direct reference system of the CRS. Otherwise, all notices shall be in writing and delivered via electronic mail (e-mail), United States Postal Service or overnight delivery service or courier.

Right to inspect

US Airways shall have the right to enter any of the Agency Locations upon reasonable notice for the purpose of inspecting Agent's books and records relating to air transportation sold on US Airways and to ensure Agent's compliance with the provision of the ARC Reporting Agreement and this Supplement.

Miscellaneous

Prior agreements

The provisions of this Addendum supersede any prior Addenda, Supplements and any inconsistent provisions of the ARC Reporting Agreement. Except as specifically stated by this Supplement, the terms and conditions of the ARC Reporting Agreement shall remain in full force and effect.

Assignment

Agent may not assign the ARC Reporting Agreement or this Supplement, in whole or in part, to any other party without the prior written consent of ARC and US Airways.

Choice of law

The provisions of this Supplement shall be governed by and construed in accordance with the laws of the State of Arizona applicable to agreements made and to be performed in said state.