On July 23, 2015, the United States of America and Carnival Corp. entered into a Settlement Agreement resolving an investigation into numerous complaints conducted by the United States under Title III of the Americans with Disabilities Act. Among the complaints were allegations that the company failed to: reasonably modify policies, practices and procedures to accommodate individuals with disabilities; properly provide and reserve accessible cabins to individuals with mobility disabilities; afford individuals with disabilities the same opportunities to participate in the programs and services, including embarkation and disembarkation; and, provide effective communication during muster and emergency drills.

Carnival Corporation owns and operates Carnival Cruise Line, Santa Clarita-based Princess Cruises, and the Holland America Line (the “Covered Brands”). Collectively, these brands own, lease, or operate 55 cruise ships and have seven (7) ships currently in the design and construction phase. These 62 ships are covered under the terms of this Agreement.

The agreement is the result of a lengthy investigation and negotiation. Carnival officials cooperated with the department throughout the process. Key provisions of the Settlement Agreement include the following:

* Non-Discrimination: Carnival Corporation will not engage in any practice that discriminates against individuals with disabilities in violation of Title III of the ADA.

* ADA Compliance Officer, ADA Responsibility officers, ADA Shipboard Officers: Carnival Corporation will designate an ADA Compliance Officer who will be responsible for compliance across the three brands. Carnival Corporation will also appoint an ADA Responsibility Officer for Carnival Cruise Line and for Holland America Group (which includes Holland America Line and Princess Cruises) who will have responsibility and authority to resolve ADA complaints for the respective brands. In addition, each covered sailing will have designated ADA Shipboard Officers available to address ADA issues that arise at sea.

* Audit of Cruise Ship Accessibility: Carnival Corporation will hire an ADA auditor to conduct surveys and audit each ship for compliance with the ADA Standards for Accessible Design in areas open to the public and in designated accessible cabins and suites. The ADA auditor will develop a plan to remediate barriers to access on each ship in conjunction with the Company’s dry dock schedule, conduct on-site inspections to verify ADA compliance, and file a report annually with the Department of Justice.

* Number of Accessible Cabins: Carnival Corporation will provide three percent of the total number of cabins as accessible cabins, including suites, on each ship, depending upon the age and class of ship.

* Configuration and Dispersal of Accessible Cabins: Carnival will provide three types of accessible cabins, including suites, that will dispersed among the various classes of cabins and suites:

– Fully Accessible Cabins (“FAC”): means a cabin that provides the relevant accessible elements for transient lodging;

– Fully Accessible Cabins- Single Side Approach (“FAC-SSA”): means a FAC that provides an accessible route and clear floor space on one side of the bed in a cabin configured to provide one bed, and between beds in a cabin configured to provide two beds;

– Ambulatory Accessible Cabins (“AAC”): means a Standard Cabin that provides accessible elements that would aid a person who is able to ambulate.

* Cabins with Communications Features:Carnival will provide cabins with communications features for individuals who are deaf or hard of hearing. Portable devices may be used to satisfy communications requirements for these cabins or suites.

* Categories and Allocation of Accessible Cabins:Carnival will allocate accessible cabins throughout the ships covered by the Agreement as follows:

– Category 1: includes ships that will have a total of 3% accessible cabins comprised of 2% of the total number of passenger cabins that are FAC and FAC-SSA, of which at least 50% (1% of the total number of passenger cabins) are FAC and, 1% of the total number of passenger cabins that are AAC.

– Category 2: includes ships that will have a total of 3% accessible cabins comprised of 1.25% of the total number of passenger cabins that are FAC and FAC-SSA, of which at least 50% (.625% of the total number of passenger cabins) are FAC and, 1.75% of the total number of passenger cabins that are AAC.

– Category 3: includes ships that will have a total of 3% accessible cabins comprised of 1% of the total number of passenger cabins that are FAC and FAC-SSA, of which at least 35% (.35% of the total number of passenger cabins) are FAC and, 2% of the total number of passenger cabins that are AAC.

– Category 4: includes ships that are not subject to the accessible cabin or public and common use space obligations of the Settlement Agreement, however they are subject to all other terms of the Agreement. If they remain as Covered Sailings after four (4) years following the Effective Date of this Agreement the parties will meet and confer regarding disposition.

* Increased Information about Accessibility in Reservations: Carnival Corporation will provide information in its reservations systems, both telephonic and internet-based, about the availability of accessible cabins and the configuration and amenities available in each accessible cabin, including suites.

* Reservations Policy to Ensure Availability of Accessible Cabins: Carnival Corporation will maintain a reservations policy for accessible cabins, including suites, that requires where a FAC, FAC-SSA, or AAC exists, these accessible cabin types are the “last cabin booked.”

* Web Site and Mobile Applications Accessibility: Carnival Corporation and the Covered Brands will improve the accessibility of its websites and mobile applications by bringing them into compliance with the World Wide Web Consortium’s Web Content Accessibility Guidelines 2.0, Level A and Level AA.

* New Company Standards to Ensure ADA Compliance: Carnival Corporation has created Brand Standards and Implementation Policies to address:

– Coordination and Management of Accessibility Issues

– Accessibility Requests and Complaint Procedure

– Dissemination of Information Regarding Accessibility

– Training

– Accessible Cabins, Reservations, Bookings and Upgrades

– Accessible Airport Transfers

– Embarkation and Disembarkation

– Shore Excursions

– Effective Communication

– Dining

– Medical and Related Auxiliary Services

– Youth Programs

– Emergency Drills

– Entertainment Venues

– Service Animals

* Training: Carnival Corporation employees with regular guest contact will be trained on topics including: general background on the ADA; an overview of the Company’s accessibility policies, practices and procedures (including examples of reasonable modifications of policies, practices and procedures); etiquette when interacting with individuals with disabilities; the process for responding to ADA requests and complaints and relevant accessibility features for the ships.

* Civil Penalties: Carnival Corporation will pay a civil penalty of $55,000.

* Compensatory Damages: Carnival Corporation will pay $350,000 in damages to complainants identified by the United States.