2016 TOUR OPERATOR AGENCY AGREEMENT

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1 2016 TOUR OPERATOR AGENCY AGREEMENT In default of any separate contract between the parties, the following agency terms apply between Independent Hospitality Marketing Ltd (IHM) Ltd (Co Reg No ) of 20 Church Road, Horspath, Oxford OX33 1RU (IHM) any UK accommodation supplier (The Hotel) and the tour operator (The Tour Operator). IHM has selected a range of independent good quality hotels and B&Bs throughout the UK and has agreed agency terms with those hotels and B&Bs to represent them in their dealings with tour operators. IHM has allocated each accommodation supplier to a grade category and assigned a price to each category. The Tour Operator authorises IHM Ltd to act on its behalf as its agent in selecting and procuring accommodation and services at accommodation suppliers across the UK at rates as set out in the annual agreement. The Tour Operator authorises IHM Ltd to invoice an administration fee on each booking as consideration for its services as described herein and to deduct this fee on a monthly basis from monies to be paid for the accommodation service. The fee is contained within the rate agreed each year. IHM will inform the tour operator at the beginning of each month the total value of such fees in the statement of monthly arrivals becoming due for payment. Wheras the Agent has expressed a wish to offer the accommodation to consumers in their country on a non exclusive basis, the terms and conditions are agreed as follows:- 1. The Parties agree to abide by the administrative details relating to the supplies of vouchers, pricing, payment of moneys and other matters as set out in this Agreement and it is expressly agreed that IHM may give written notice of any amendments thereof provided always that IHM shall use its best endeavours to give the tour operator not less than four weeks prior written notice. 2. IHM agrees to provide information and support to the tour operator as the tour operator may from time to time reasonably require and in particular:- i. To provide some directories during the first quarter of each year. ii. To supply transparencies, bromides, and other advertising and promotional materials. iii. To participate (at the sole discretion of IHM) in marketing campaigns in support of sales activities within the territory. 3. The parties hereby agree that any promotional materials supplied shall at all time remain the property of IHM. 4. The tour operator agrees and undertakes:- i. To comply with the terms of pricing, payment and issuing of vouchers, included hereto. ii. To use his best endeavours to sell the hotels and B&B s. iii. To inform clients and keep them informed of all conditions relevant to the booking and the exchange of vouchers. iv. To keep IHM fully informed of all relevant developments concerning the market within the territory. 5. The tour operator acknowledges IHM Ltd is acting simply as a booking agency between the tour operator and the 3rd party accommodation supplier. The tour operator acknowledges that it enters into a contract with each accommodation supplier chosen and is bound by the terms of the contract. As agent, IHM is not liable for any act or omission of any accommodation supplier and the tour operator undertakes to indemnify and hold harmless IHM Ltd from any damages arising from any acts or omissions of the accommodation supplier The tour operator undertakes to indemnify and hold harmless IHM Ltd from any damages arising from any acts or omissions of the properties resulting in death/personal injury to the tour operators clients outside of IHM s (or its employees) direct control.

2 The tour operator acknowledges IHM Ltd has not inspected every property and relies on tourism gradings from Visit Britain and the AA in procuring properties of a good quality standard for the tour operator s customers. These quality grading schemes do not encompass technical matters. It is agreed by the tour operator that any refunds payable, relating to customer complaints, booking errors and/or overbooking by the accommodation suppliers shall be limited to, and shall not exceed, the maximum value of the price paid by the tour operator for the accommodation. CUSTOMER COMPLAINTS IHM acknowledge that sometimes clients will be dissatisfied with the accommodation and will raise a customer complaint either at the time of stay or on return to their home country. IHM will, under no circumstances be liable to refund any amounts to the tour operator (or to the tour operator s client) but the accommodation supplier may offer a full or partial refund if the following procedure is strictly adhered to:- i) The clients should inform the accommodation provider of the specific nature of the complaint and give him/her the opportunity to rectify it. Irrespective of the nature of the complaint, if this condition is not adhered to, no refund or alternative accommodation can be offered under any circumstances. ii) If the accommodation provider is unable to rectify the problem, at the earliest realistic opportunity, the client should contact either IHM or the tour operator and advise the specific nature of the problem. iii) The tour operator should notify IHM within normal business hours so alternative arrangements and/or any refund can be offered and agreed by the accommodation supplier. iv) Under all circumstances, no complaint will be investigated or considered for refund by the accommodation supplier if it is received by IHM or the accommodation supplier more than 14 days after the date of departure. v) Clients should arrive at their accommodation between 4pm and 6pm. There is no undertaking that rooms will be cleaned and ready for occupancy before these hours. If clients intend to arrive after 6pm, the accommodation provider must be informed. Check out times vary by establishment. 6. This agreement shall continue on an annual basis subject to either party terminating the Agreement by giving not less than 6 months prior written notice, such notice to be given before 30th June in any one year. 7. On any such termination:- i. The tour operator undertakes to return to IHM at the tour operator's sole expense all directories, transparencies and marketing materials which are still in the care and control of the tour operator. ii. The tour operator further undertakes immediately to take all such steps in order to secure the removal of all reference to the trademarks and logos from stationery and publicity material and to make it clear that this agency has been terminated and further undertakes to indemnify and hold harmless IHM against all costs and expenses arising howsoever caused from any breach of this undertaking.

3 8. The tour operator recognises that IHM is the owner of all trademarks and that this agreement does not in any way constitute a sub-licence. 9. This agreement will be deemed to have been made in England and shall be governed in all respects by English Law. VOUCHERS AND PRICING 1. Unless a separate written agreement exists., the pricing of pre-booked and GAYP vouchers for each calendar year is as described in the Net Tour Operator Rates. 2. Properties are divided into 6 pricing categories as indicated in the annual guides, in the listings and on the IHM website. The tour operator recognises that the listings supplied for brochures are compiled up to 9 months in advance and are for guidance only. Accommodation may change ownership prior to and during the course of the year and new owners are free to change their category rate. The tour operator also recognises that some booking requests (Easter, Christmas, Bank Holiday weekends etc.) may be offered by IHM on behalf of the property at higher rates than the specified category rate for a particular property. 3. All vouchers cover the cost of bed, breakfast (where indicated), VAT (where applicable) and service in a twin/double room, subject to availability. Visitors in high season (July 1st-August 31st, Public Holidays and Weekends, Easter and Christmas/New Year) are urged to pre-reserve accommodation. ADMINISTRATION 1. Subject to any directly separate arrangement between the tour operator and a specific property, all bookings are made on a request basis. IHM does not hold committed bedroom inventory nor any risk associated with that business model. 2. Requests can be made by fax ( ) or e.mail (info@circlehotels.co.uk) 3. Some accommodation suppliers offer their room availability via an on-line diary and there is a procedure within the IHM website for tour operators to log-in and procure that accommodation pending formal confirmation from IHM within 24 business hours. 4. If accommodation is available it is confirmed in a fully priced invoice. A Confirmed voucher must be issued to include the IHM reference number. All "Go As You Please'' or "open reservations'' must be issued with an Open voucher specifically relating to that programme. MODIFICATIONS IHM has agreed with accommodation suppliers that reservations may be altered or cancelled ONCE up to 72 business hours (Mon-Fri, 9am-5.30pm UK time) before the confirmed date free of charge. IHM, at its discretion, reserve the right to charge per reservation on any subsequent amendments and the accommodation supplier may look to levy its own charge. Typically, no refunds will be given by the accommodation supplier for changes within 72 business hours of the arrival date in the United Kingdom. CANCELLATIONS All requests WILL BE CONFIRMED if the accommodation is available and proof of sending a subsequent cancellation request is no guarantee it has been received. All cancellations will generate a cancellation number that must be quoted for any deduction from invoice to take place. IHM will not be held responsible for any errors on the part of tour operators in this procedure. IHM has agreed a scale of charges with the accommodation suppliers. All cancellation charges are based on the date of arrival in the United Kingdom (or the first date at which IHM services are to be provided). This date is specified on the booking confirmation.

4 i) Inclusively priced tours sold on request. Cancellation within 72 business hours (Mon-Fri, 9am- 5.30pm UK time) of the arrival date, or abandonment during the holiday itself - 100% cancellation fees apply. ii) Inclusively priced tours sold from freesale. Following the expiry of any cooling off period legally binding within the country of residence - 100% cancellation fees apply. iii) Holidays consisting of individually requested properties or locations. For 72 business hours after receiving the cancellation or notice of abandonment (Mon-Fri, 9am-5.30pm UK time) 100% cancellation fees apply. Thereafter, the accommodation supplier may at its discretion offer a refund of up to 75% of any remaining individual elements of a booking to be cancelled. IHM recommends cancellation insurance be held by all clients. 3. Reservations shall only be held until 6pm on the day of arrival. If guests intend to arrive later than 6pm, the accommodation supplier must be informed. Failing this, the accommodation supplier reserves the right to re-let the room(s). 4. IHM will not be responsible for any loss resulting from lost or damaged open vouchers, howsoever caused. 5. Customers travelling with open vouchers will be entitled to ONE free telephone call per day expressly to reserve the following night's accommodation. 6. At the time of making an onward reservation, the customer will be required to supply his name, the number in his party, the room requirements, and the sequential reference number of the voucher(s) that will be used to settle the account. The accommodation supplier will insist that the name of the property is written onto the voucher at that time, and may request a credit card number to guarantee the booking. 7. Accommodation suppliers are under no obligation to accept GAYP vouchers for payment unless presented at registration. All additional charges that are due must be paid DIRECTLY TO THE ACCOMMODATION. 8. For sold and issued, but unused, "open" vouchers. IHM agrees to refund to the tour operator 80% of the price paid at the time of issue in UK sterling providing that the vouchers are received by IHM prior to December 31st in the year of issue. 9. For any unused stocks of GAYP vouchers which have been pre-paid by the tour operator, IHM agrees to credit 100% of the price paid at the time of issue in UK sterling against the following year s stocks providing that the vouchers are returned to IHM prior to December 31st in the year of issue. 10. It is recommended that the tour operator should not mark up the selling price of any net rate by more than 25% in local currency equivalent. PAYMENT 1. All payments by the tour operator will be held in a separate trust account pending a claim by the accommodation supplier after the date of stay. 2. Accommodation suppliers are paid monthly on the 27 th of each month. 3. Accounts shall be deemed payable as follows:- Confirmed reservations are statemented on 1 st of each month and are due for payment by the 15 th of that month. GAYP vouchers are to be paid for prior to issue. IHM reserves the right, at its discretion, to charge interest of 2.5% per month on any accounts exceeding 30 days overdue and/or cancel any future reservations. Please note that a bank notification is NOT required (payments are monitored daily on-line) and this will reduce agent s bank charges.

5 UK Sterling payments should be inclusive of all bank charges and made to:- NAT WEST BANK, Oxford East Branch, 189 Cowley Road, Oxford OX4 2DX Sort Code: Account Number BIC NWBK GB 2L IBAN GB73 NWBK Payments by Credit Card will be subject to the following surcharges Mastercard/Visa 2.5% Amex 3.0% In default of a separate agreement between the parties, sending requests for the accommodation, confirmation of bookings and the issuing of vouchers to the customer shall be deemed the tour operator s acceptance of these operational procedures and terms and conditions. Issued by IHM Ltd 19 th November 2015

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