China Holidays, Inc. demonstrates its financial integrity by participating in the Travel Funds Protection Plan, operated by National City Bank and endorsed by the American association of Travel Agents (ASTA).

NATIONAL CITY TRAVEL FUNDS PROTECTION PLAN

Since September 25, 2007 China Holidays, Inc. has been a participant in the National City Travel Funds Protection Plan (“Plan”).  The Plan offers you and your travel agent the opportunity to place your deposit/payment into an escrow account maintained by the Trust and Financial Services Division of National City Bank (“NCB”).  NCB is a banking subsidiary of National City Corporation, whose shares are traded on the New York Stock Exchange.

True Escrow Protection

All credit card payments directly made by you through China Holidays, Inc. are processed by a U.S. based credit card processing financial institution (“Merchant Bank”) China Holidays, Inc. has instructed the Merchant Bank to deposit all credit card payments processed for the account of China Holidays, Inc. into the NCB escrow account.  This means that such funds will be separate from the operating funds of China Holidays, inc.  The Plan differs from some so-called escrow agreements where a tour operator opens a bank account in its own name as trustee.  China Holidays, Inc. has also agreed to allow an independent Certified Public Accountant to annually review China Holidays, Inc. financial receipts records for various dates randomly selected by the CPA during the prior year.  You or your travel agent may obtain a copy of the CPA’s report upon delivery of a written request to China Holidays, Inc.

How you can participate in the Plan if Paying by Check.

If payment for your trip is by check, your check (or your travel agent’s check, if you are relying on your travel agent) must be made payable to “National City Bank / China Holidays, Inc. Escrow Account”.  NCB can not be responsible under the Plan for check which is payable in any other manner.  China Holidays, Inc. pays all costs of your participation in the Plan.

How Deposits/Payments received are Protected under the Plan

When NCB received your funds, they will be deposited into a NCB escrow account.  After your scheduled return date according to NCB’s records (and after China Holidays, Inc. should have rendered the services to you).  NCB will deliver the remaining funds to China Holidays, Inc. and/or providers of travel services.  In the unlikely event that China Holidays, Inc. defaults or ceases to operate, you or your travel agent must file a refund claim with NCB for the funds which are in the escrow account.  Your claim must be filed as soon as possible but no later than two days after the end of your scheduled trip  booked with China Holidays, Inc.

What is not protected under the Plan

The Plan does not protect you, your travel agent or any provider of travel services from loss (monetary or otherwise) resulting from the following:

• Your cancellation or interruption of your trip for any reason including death, injury, illness of you or a family member.
• Any delays in delivering any of the travel services.
• Any disputes involving your travel agent, China Holidays, Inc. or any provider of travel services regarding the type or quality of services promised or rendered.
• Checks and the proceeds of credit card payments not received and collected by NCB.
• Travel agent payments through a miscellaneous charge order (MCO) unless China Holidays, Inc. advances its own funds into the NCB escrow account to cover the MCO or the proceeds of the MCO are received by NCB prior to the date of your departure.
• Failure of you or your travel agent to make a timely claim for a refund in the unlikely event of a default by China Holidays, Inc.
• Payments to Tour Operator for domestic or international air carrier services.
• The payment of funds to your travel agent for services not provided by China Holidays, Inc.

Various types of travel insurance programs are available to protect you from some of the above losses.  The Plan does not guaranty payment to any party which provides travel services to you.

Plan Summary

This is only a summary of the Plan.  The obligations of NCB with respect to deposits/payments received by NCB are governed solely by the terms of an Escrow Agreement by and between China Holidays, Inc. and NCB.

All Claims for refunds under the Plan should be submitted to:

National City Bank
Travel Industry Financial Services, Dept. TFPP
755 W. Big Beaver Rd., Suite 1400
Troy, MI 48084

For further details, please call David Valpredo, Senior Vice President, of NCB’s Travel Services Department, at (248) 729-8375.