GENERAL CONDITIONS OF CONTRACT OF SALE OF TOURIST PACKAGES

Granted that:

1. GH S.R.L. operates as a TRAVEL AGENCY & TOUR OPERATER in Bologna, Via Cesare Battisti 9, fiscal code 02475521205, entered as number 442458 in the Registro delle Imprese di Bologna, the right Autorizzazione Amministrativa dalla Provincia di Bologna number 390 (managerial action 23/4/2007);
2. The seller of tourist packages, directed towards the consumer, should be in possession of the administrative authorization as related to the activity;
3. The consumer has the right to receive a copy of the contract of sale of the tourist package (in the sense of article 85 Cod. Cons.), which is the most important document to eventually access the Fondo di Garanzia of which in article 16 lays out the present general conditions of the contract.

The idea of a "tourist package" (art. 84 Cod. Cons.) is the following: the tourist packages have the object of trip, holiday, and the concept of "all-inclusive", resulting in the prefixed combination of at least two of the following elements, sold or offered in sale at an inclusive price, and for a duration longer than 24 hours or at least covering a period of at least one night:
a) transportation
b) lodging
c) tourist services that are not connected to transportation or lodging (omitted)… that constitute a significant part of the "tourist package."

1) LEGISLATIVE REFERENCES. The buying and selling of tourist packages, whether with services in national territories or abroad, will be under the discipline of L 27/12/1977 nr. 1084, ratified and executed by the Convenzione Internazionale relative to vacation contracts (CCV) signed at Brussels 23/4/1970, and for which the Codice di Consumo is also applicable.

2) RESERVATIONS. The request for a reservation should be made on the appropriate form, and if it's done electronically, completed fully and undersigned by the client who will receive a copy of it.
The acceptance of the reservation on the part of GH S.R.L. is subordinate to the availability of locations. The reservation is considered complete, with the consequent conclusion of contract, only in the moment in which the organization sends confirmation, also by way of automatic system, to the client (or to the agency from which the sale was made).
The information relative to the tourist package that is not contained in the contractual documents, in the pamphlet, or in other modes of communication will be supplied by the organization, carried under regulation, of the provided obligations as charged by article 87, comma 2 Cod. Cons. before the beginning of the trip.

3) PAYMENT. When consumers officially confirm their reservation, they have to pay as deposit an entrance fee and a deposit equal to 25% of the price of the tourist package. Such amount of money has to be paid at least 30 days before departure or at the same time of the reservation, in case this is made within the 30 days preceding departure. Failure to pay the above-mentioned amount of money within the given times constitutes an express termination clause such as to determine rightful termination by the intermediary agency and/or the organizer. The concerning communication, in case it comes from the organizer, will be sent to the buyer (or to the intermediary agency, if the sale has been carried out through it).

4) SUBSTITUTIONS / WITHDRAWAL

4.1. Substitution
Customers renouncing holiday packages may appoint another person to take their place, provided that: the organizers are notified in writing, or in case of need by telegram, fax or telex, at least 4 working days prior to the established departure date, and are given information identifying the substitute at this time (name, surname, date of birth, sex, country); the substitute meets all the conditions for enjoyment of the service. Nevertheless GH s.r.l. will not be responsible for the non-acceptance of the substitute on the side of third parties providing services. The transferor and the transferee shall be jointly liable for payment of the balance of the price and of further amounts deriving from the substitution, as specified in the following Art. 7.

4.2. Withdrawal by the consumer and cancellation
4.2.1. For the organization of its journeys, GH s.r.l. relies on a series of service that have been bought from specific companies providing such services. In order to assure that, as a consequence of the reservations made by travellers and accepted by GH s.r.l., these services are actually made available by service suppliers, GH s.r.l. has to perform contractual obligations towards service suppliers.
On the basis of what written above and assuming that, according to art. 1372 e 1373 c.c. , the faculty of withdrawal represents an exception with respect to the general principle of the binding contract, apart from the hypothesis expressively ruled by D.Lgs. 111/95, withdrawal, apart from the hypothesis expressively ruled by D.Lgs. 111/95, is exclusively allowed under the condition that the client will not let GH s.r.l pay for the costs, expenditures and losses that it will have to bear as a result of such withdrawal.
Hence, the contractual policy of withdrawal and cancellation is determined as follows.

4.2.2. Consumers who withdraw from the contract prior to departure for reasons other than those listed in art. 4.2.3 shall be charged, as penalty, the payment of the entrance fee irrespective of the payment of the deposit determined in art. 3, insurance premium and the following percentages of the total price of the holiday, calculated on the basis of how many days prior to departure they withdraw (the day of the withdrawal is NOT included and the withdrawal must be notified at least one working day prior to departure):

1. withdrawal from 59 to 31 days prior to departure: 20% for all journeys and staysi;
2. withdrawal from 30 to 21 days prior to departure: 35% of the overall cost;
3. withdrawal from 20 to 11 days prior to departure: 60% for all journeys and stays;
4. withdrawal within 10 days prior to departure: no refund.

The same amounts of money should be paid by travellers who have to withdraw because they do not have the necessary documents or such documents are not regular. No refund will be due to travellers who decide to Interrupt the journey or stay once it is underway.

4.2.3. The consumer may withdraw from the contract without payment of the penalties described In art. 4.2.2. in case GH s.r.l. changes significantly one or more elements in the contract which may objectively be considered essential, such as (just as an example and not as en exhaustive description):
- increase in the all-inclusive price of the journey exceeding 10% of the overall price;
- postponement of the day of departure of more than two working days;
- change In the hotel category..
In this case the consumer must provide notification of his/her decision (to accept the change or withdraw) no more than two working days after receiving notification of the Increase or change. If no express notification Is received from the consumer by this deadline, the organizer's proposal shall be considered accepted
In case, according to art. 4.2.3., the consumer decides to withdraw from the contract, he/she has the right to one of the following alternatives: to enjoy use of an alternative holiday package, at no extra charge or returning the excess paid if the second holiday package is worth less than the first; to refund the part of the price already paid only. This refund must be made within 7 working days from notification of the withdrawal and of the decision not to accept alternative proposals

5) PARTICIPANTS' OBLIGATIONS. Participants must have their own individual passports or other travel documents valid for all nations included in the itinerary, transit and stay visas and any medical certificates which may be required. They must also comply with the rules of due prudence and diligence and with specific rules in effect in the nations to which they travel, all information provided by the organisers, and regulations and administrative and legislative provisions applying to the holiday package. Participants shall be held liable for any damage suffered by the organisers as a result of their failure to comply with these obligations. The consumer shall be required to supply the organisers with all documents, information and elements in his or her possession of use for exercising the organisers' right to subrogation for third parties responsible for damage, and shall be liable to the organisers for prejudice to the right of subrogation.

6) PARTICULAR NEEDS OF THE CLIENT. The consumer shall likewise notify the organizers in writing, when making a reservation, of any special personal requests. GH s.r.l. will notify in writing of having accepted such requests only after having verified that service suppliers are actually able to fulfil such requests. Gh s.r.l. will then notify the consumer or intermediary agency (in case the reservation as been carried out through it) the amount of the extra charges resulting by such requests, in case they can actually be fulfilled.

7) VARIATIONS PRIOR TO DEPARTURE.

7.1 VARIATIONS PRIOR TO DEPARTURE BY THE CONSUMER. Variations required by the consumer after the reservation has already been confirmed by GH s.r.l. cause operational costs for GH s.r.l. and sometimes also the obligation to pay penalties to suppliers as well as the risk of a decrease in the reservations on flights, with all connected damages. GH s.r.l. will therefore charge the consumer with € 25,00 (Euro twentyfive/00) per case for the variations regarding: departure airport, breakfast / half board / full board service, hotel, decrease in the duration of the stay, rental of different services, departure day (same week-end or preceding date). The consumer will also be charged as follows for mere variations in the destination (hotel with accommodation only) or in the day of departure:
From 29 to 15 days: 5% of the participation fee;
From 14 to 9 days: 10% of the participation fee;
From 8 to 4 days: 30% of the participation fee;
From 3 to 0 days: of the participation fee.
* For variations in the destination or hotel as well as for variations in the departure day regarding journeys that last more than 13 days or are made with charter flights: 50% of the participation fee (80% in case of variations in the departure day for combinations with accommodation only).  
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NOTE 1) A reduction in the number of the participants of one single journey has to be considered as "partial cancellation" (see art. 4.2. Withdrawal). 2) by "destination" we do not mean the Country but the town of stay, since there may be different towns of stay within the same country. 3) in case different requests are submitted simultaneously, the corresponding costs are not added to one another, but only the highest one in applied.

7.2) VARIATION OR CANCELLATION OF THE HOLIDAY PACKAGE PRIOR TO DEPARTURE BY THE ORGANISER. Every significant change made by the organiser in the package or in one of its essential elements has to be accepted by the consumer according to art. 91 of the Cod. Cons. In case the consumer does not accept such variations, he/she can enforce the rights listed in art. 4.2.3.. The consumer may exercise these rights even when cancellation is a result of failure to reach the minimum number of participants required or of force majored or chance event affecting the holiday package purchased. For cancellations other than those due to force majored or chance event, to failure to reach the minimum number of participants required or to not acceptance of the proposed replacement holiday (according to art. 4.2.3.), the organiser (according to art. 33 E of the Cod. Cons.) will refund the consumer with the double of the sum previously paid (through the intermediary agency, in case the consumer has booked and paid through it). The refunded sum will never be higher than the double of the amount of money that the consumer should pay according to art. 4.2.3. in case he/she withdraws from the contract.

8) LIABILITY. The organisers shall be liable for damage to consumers resulting from total or partial defaulting on services to be provided under the contract, whether the services are to be supplied by the organisers or by another service provider, unless the organisers can demonstrate that the event is attributable to the consumer's actions (including initiatives independently undertaken by the consumer while services included in the holiday package are underway) or circumstances extraneous to the supply of services under the contract, chance events, force majored, i.e. circumstances which the organisers could not have reasonably foreseen or resolved with due professional diligence. The intermediary agency that has carried out the reservation of the package is not responsible for obligations arising from the journey, but exclusively for obligation rising from its role of intermediary and, in any case, according to the responsibilities determined by international laws and agreements.

9) LIMITS ON COMPENSATION. Compensation to be paid by the organisers for injuries to the person shall not exceed the amounts of compensation specified by international agreements involving Italy and the EU with respect to those services whose non-fulfilment has determined liability. In particular, in no case shall the ceiling on compensation exceed the amount of 50000 Germinal Gold Francs for damage to people, 2000 Germinal Gold Francs for damage to objects and 5000 Germinal God Francs for any other damage (art. 12, n2, CCV).

10) VARIATIONS AFTER DEPARTURE. In the event that the organisers should find that it is impossible to supply an essential part of the services included in the contact after departure, for any reason not attributable to the consumer, the organisers must provide alternatives at no extra charge to the consumer, and if the value of the services provided is lower than the value of those that had been promised, the organisers must refund the consumer the difference. In case there is no alternative solution, i.e. if the consumer doe not accept the solution proposed by the organiser for reasonable and provable reasons, the organiser, if necessary, will provide the consumer with another means of transport for the journey back at no extra charge. This means of transport will be the same as the initially arranged one for the journey back to the departure place or to any other agreed place, under the condition that such means of transport actually is available in the normal and habitual way and that there still is place. In case this solution Is not possible for reasons that are not depending on GH s.r.l., GH s.r.l. will refund the consumer the difference between the arranged services and the actually provided services, or, as an alternative, the client can choose to receive a voucher for the enjoyment of an alternative service, whose value Is equal to the value of the non-provided services.

11) HOTEL CASSIFICATION. The official classification of hotel facilities is provided in the online catalogue or other informative material strictly on the basis of the official indications expressed by the authorities of the country in which the service is supplied. In case there is no classification that has officially been recognized by the authorities of the country (also members of the EU) in which the service is supplied, the organiser will provide the consumer with a catalogue or a brochure with a description of the hotel facilities. This will allow the consumer to evaluate the hotel facilities and, on the basis of this evaluation, to accept them or not.

12) OBLIGATION TO PROVIDE ASSISTANCE. The organisers shall be required to provide assistance to consumers to the extent required by the criterion of professional diligence, exclusively in relation to the organisers' obligations under the provisions of the law or of the contract. The organisers and the seller shall be exonerated from their responsibilities (art. 8 and 9) when failure to execute the contract or inexact execution is attributable to the consumer or depends on an unforeseeable or inevitable action by a third party, a chance event or force majored.

13) COMPLAINTS AND ACCUSATIONS. The consumer must contest all failures to execute the contract without delay, even during travel or the trip, so that the organisers, their local representatives or the accompanying person may remedy the situation promptly. The consumer has to lodge a complain by sending a registered letter with consignment receipt to the organiser or seller within 10 working days from the return in the departure place.

14) PRICE-VARIATIONS. The price of the tourist packages of this catalogue Is expressed in Euro and are determined on the basis of currency value and service costs in force at the time of the writing of the journey or stay programmes, with respect to the parameters indicated in the catalogue. Such price can be modified only according to variations of the cost of transport, fuel, rights and taxes, such as (just as an example and not as en exhaustive description) taxes of embankment/landing in ports and airports or taxes connected to the applied exchange rate. The variation of the price will be proportional to the above-mentioned elements and the consumer will be provided with the indication of the variation of the price element that has led to the variation itself.
However, the price stated in the contract will be increased within 20 days prior to departure. The consumer can decide to withdraw from the contract (according to art. 4.2.3.) in case the price of the journey increases by 10%, provided that he/she notifies GH s.r.l. his/her intention in writing within two working days from the communication of the Increase in price. In any case no complaints on the cost of the journey will be accepted during or after the journey itself.

15) INSURANCE. If not expressly included in the price, it is possible, and in fact advisable, to stipulate a special insurance policy in the organisers' or retailer's offices when making the reservation covering trip cancellation costs, injury and baggage. Moreover it will be possible to stipulate an assistance contract that covers repatriation costs in case of accidents or illnesses. Details regarding Insurance premiums and general condition of insurance policy are in the relevant section of the catalogue or on the website www.terremobili.com

16) GUARANTEE FUND.   The General Direction of Tourism for the Ministry of Production has established a Guarantee Fund which consumers may resort to (under art. 100 Cod Cons.) in the event that the retailer or organiser should declared insolvency or bankruptcy. This Guarantee Fund protects the following needs:
a) refund of the paid amount of money;
b) repatriation in case of travel aboard.
Moreover the Fund has to provide an immediate amount of money for the forced repatriation of tourists travelling in extra-communitarian countries in case of emergences for which the behaviour of the organiser can be responsible or not.
The methods for use of the Fund are established by decree of the President of the Council of Ministers n. 349 dating to 23/07/99

17) COMPULSORY INFORMATION - TECHNICAL INFORMATION
1. Technical organization: GH IMPRESA TURISTICA - Bologna
2. Administrative authorisation n: 390 dating to 23/4/2007 (executive act n°20) according to Law 7 dating to 31/3/2003
3. PInsurance policy RC n. 22580 stipulated with EUROPASSISTANCE - MILANO according to art. 94 e 95 Cod. Cons
4. Fidejussion policy n° 00100049924 stipulated with NAVALE ASSICURAZIONI - MILANO.

ADDENDUM
GENERAL CONDITIONS OF CONTRACT OF SALE OF SINGLE TOURIST SERVICES

A) PROVISIONS OF THE LAW
Contracts that are based on the offer of the mere transport service, stay or any other separated tourist service cannot be considered as contracts based on the organization of a journey, i.e. a tourist package. they are therefore ruled by the following articles of the CVV: art. 1, n.3 e n.6; art. from 17 to 23; art. from 24 to 31, as to provisions other than those regarding the organization contract, as well as other agreements concerning the sale of the single service that is the object of the contract.

B) CONTRACT CONDITIONS
To such contracts can also be applied the following above-mentioned clauses on the general conditions of sale of tourist packages: art 2, art 3, art 4, art. 5, art. 7.1, art. 10, art 12, art. 15.
implementation of such clauses does not absolutely determine the configuration of the corresponding contracts as case in point of tourist package. In the above-mentioned clauses the words referring to the contract of tourist package (organiser, journey, etc.) should therefore be considered with respect to the corresponding roles of the contract of sale of single tourist services (seller, stay, etc.).