CROATIAN RADIO TELEVISION

CROATIAN RADIO TELEVISION CHANNEL ONE, CHANNEL TWO RATE CARD FOR CROATIAN TELEVISION MARKETING SERVICES WITH GENERAL TERMS AND CONDITIONS Zagreb, February 2010

Pursuant to Article 21 of the Statutes of HRT/Croatian Radio Television, the Board of Directors of the HRT at its 286 th Session held on 2 nd February 2010, adopted CROATIAN TELEVISION MARKETING SERVICES RATE CARD WITH GENERAL TERMS AND CONDITIONS (2010) I. BROADCASTING RATES (in HRK) 1. HTV1 Commercial block before programme Commercial block before programme Time Slot Rate per one (1) second Rate per one (1) TRP age 18 to 49 and 30 seconds commercial 00:00 00:59 A-01 150 300 01:00 06:59 A-02 50 100 07:00 11:59 A-03 400 600 12:00 17:59 A-04 500 700 18:00 18:59 A-05 1,000 1,400 19:00 21:59 A-06 1,300 1,700 22:00 22:59 A-07 600 1,400 23:00 23:59 A-08 500 700 2. HTV2 Commercial block before programme Commercial block before programme Time Slot Rate per one (1) second Rate per one (1) TRP age 18 to 49 and 30 seconds commercial 00.00 00.59 B-01 150 300 01.00 06.59 B-02 50 100 07.00 11.59 B-03 200 300 12.00 17.59 B-04 300 600 18:00 19:59 B-05 500 800 20:00 21:59 B-06 1,000 1,600 22:00 22:59 B-07 600 1,300 23:00 23:59 B-08 500 700 2

3. SPECIAL SLOTS A) SPORTS UPDATE AND WEATHER FORECAST Single broadcast and broadcast lease in continuity a) HTV1 from 19:50 to 20:05, commercial blocks up to two (2) minutes Time Slot Rate per one (1) second for 30 up to 60 days lease in continuity (day after day) SPORTS UPDATE & WEATHER FORECAST Rate per one (1) second for up to 30 days lease in continuity (day after day) D-02 2,400 2,600 RATE PER BROADCAST LEASE FOR MORE THAN 60 DAYS PERIOD WILL BE AGREED SEPARATELY. Time SPORTS UPDATE AND WEATHER FORECAST Slot Rate per one (1) TRP (age 18 to 49) of 30 sec commercial for 30 to 60 days lease in continuity Rate per one (1) TRP (age 18 to 49) of 30 sec commercial for up to 30 days lease in continuity D-02 3,000 3,250 RATE PER BROADCAST LEASE FOR MORE THAN 60 DAYS PERIOD WILL BE AGREED SEPARATELY. b) Lease of super-imposed broadcast, on a part of the screen, in opening credits of Noon News Bulletin, TV Clock, Sports Update and Weather Forecast and News Bulletin 3 on HTV1, and credits in Sports News on HTV2. Lease on TV Clock up to 10 seconds and on Noon News Bulletin, Sports Update and Weather Forecast, News Bulletin 3 and credits in Sports News up to 5 seconds. Time Slot Rate per one (1) sec for 30 to 60 days lease in continuity (day after day) Rate per 1 (one) sec for up to 30 days lease (minimum 7 day lease) in continuity (day after day) 11:59 12:10 HTV1 D-03 600 700 19:29 19:30 HTV1 D-04 3,250 3,500 19:55 20:00 HTV1 D-05 3,250 3,500 22.55 23.00 HTV1 D-06 600 700 22.55 23.00 HTV2 D-07 600 700 RATE PER BROADCAST LEASE FOR MORE THAN 60 DAYS PERIOD WILL BE AGREED SEPARATELY. RATE FOR SUPER-IMPOSED BROADCAST WILL BE AGREED EXCLUSIVELY ACCORDING TO DURATION OF A COMMERCIAL AND NOT ACCORDING TO A NUMBER OF VIEWERS. 3

ONLY ADVANCE PAYMENT DISCOUNT WILL BE GRANTED TO SUPER-IMPOSED BROADCASTS. MONTHLY INTEX RATE IS CALCULATED ON SET RATES. 4. INCREASE RATE COEFFICIENT FOR BROADCAST IN A BREAK OR IN LONE POSITION BEFORE OR AFTER FOR PROGRAMMES (BLOCK OF UP TO TWO COMMERCIALS) FOR RATES SET FOR ONE (1) SECOND OR 1 TRP FOR THIRTY (30) SECONDS FROM ITEMS 1) AND 2) Broadcast slots Coefficient for break and Broadcast slots Coefficient for break and HTV1 lone position HTV2 lone position 00:00 00.59 1.8 00:00 00:59 1.8 01:00 06:59 1.8 01:00 06:59 1.8 07:00 11:59 1.8 07:00 11:59 1.8 12:00 17:59 1.8 12:00 17:59 1.8 18:00 18:59 1.8 18:00 19:59 1.8 19:00 21:59 1.8 20:00 21:59 1.8 22:00 22:59 1.8 22:00 22:59 1.8 23:00 23:59 1.8 23:00 23:59 1.8 5. The HRT may introduce programme indexes in the course of the year, which will be established by a separate decision. 6. BROADCAST RATES PER MONTH (MONTHLY INDEX) MONTH Monthly index rate January 0.80 February 0.90 March 1.10 April 1.20 May 1.20 June 1.00 July 0.90 August 0.80 September 1.00 4

October 1.20 November 1.20 December 1,10 MONTHLY INDEX DOES NO APPLY TO COMMERCIAL PACKAGES AND LEASES IN CONTINUITY (DAY AFTER DAY) OF SPECIAL SLOTS. MONTHLY INDEX APPLIES TO SINGLE BROADCASTS ONLY. 7. RATE STATEMENT FOR COMMERCIALS OF VARIOUS DURATIONS, WHEN RATE IS SET FOR 1TRP COMMERCIAL OF UP TO 30 SECONDS, IS SETTLED WITH FOLLOWING COEFFICIENTS: Commercial duration in seconds Coefficient Commercial duration in seconds Coefficient 5 0,30 34 1.16 6 0,35 35 1.20 7 0.40 36 1.24 8 0.45 37 1.28 9 0.50 38 1.32 10 0.50 39 1.36 11 0.55 40 1.40 12 0.60 41 1.44 13 0.65 42 1.48 14 0.70 43 1.52 15 0.70 44 1.56 16 0.75 45 1.60 17 0.80 46 1.63 18 0.82 47 1.66 19 0.84 48 1.69 20 0.86 49 1.72 21 0.88 50 1.74 22 0.90 51 1.76 23 0.92 52 1.78 24 0.94 53 1.80 25 0.95 54 1.82 26 0.96 55 1.84 27 0.98 56 1.86 28 0.99 57 1.88 29 1.00 58 1.90 30 1.00 59 1.91 31 1.04 60 1.92 32 1.08 61 1.93 33 1.12 62 1.94 5

To continue the table, for each additional second of commercial duration over 62 seconds the value of 0.01 is to be added to the coefficient for the commercial of 62 seconds. 8. HTV1 AND HTV2, CLOSING AND ANNOUNCING OF PROGRAMMES Rate for a commercial broadcast in a programme announcement or when closing the programme shall be equal to the rate for commercial at the time of broadcasting. The broadcast rate per second only will be applied to the announcements. 9. SPORTS PROGRAMME, HTV1 and HTV2 Rates for advertising during World Championships, European Championships and Olympic Games shall be determined by special Rate cards for HTV marketing services. 10. SUPER-IMPOSED BROADCAST AND SPLIT TV SCREEN Rate for a commercial which is broadcast super-imposed or broadcast on one part of TV screen shall be equal to the rate for a commercial in the break of broadcasting. 11. REGIONAL PROGRAMMES Television Centre Slot Commercial block before or after Rate per one (1) second in HRK RIJEKA and PULA RR 80 SPLIT RS 80 OSIJEK RO 80 VARAŽDIN RV 80 BJELOVAR RB 80 ZADAR RZ 80 DUBROVNIK RD 80 ŠIBENIK RŠ 80 6

II. ORDERS FOR BROADCASTING COMMERCIALS a) Advertising agency may deliver orders for broadcasting commercials (disposition) and perform other services for the advertiser only under the terms and conditions of a concluded agreement (agency agreement) and a trilateral or a joint agreement. For the agency agreement, the agency is bound to give the list of advertisers. Gaining the advertiser s discounts (quantity discount) for advertisers ordering through the agency is possible only by making a trilateral agreement. Unless the above condition is met, the HRT will not act according to the advertising agency request. b) Orders for broadcasting commercials that the agency places for one advertiser cannot be transferred to another advertiser without the HRT giving consent to it provided such a request is given to the HRT at least four (4) days prior to broadcasting. c) Orders shall be given by a proper request (disposition) for broadcasting and it shall contain: name and residence of the agency/advertiser, OIB/Personal identification number, number and date of the order, agreement number, denomination of the product or the service, title and duration of the commercial, day, date and time of broadcasting the commercial, name of the channel on which it will be broadcast, and the programme in the frame of which it will be broadcast. d) Orders for broadcasting shall be received not less than four days prior to broadcasting, while cancellations of ordered or leased slots shall be received not less than three days prior to broadcasting. If the order is cancelled less than three days prior to broadcasting, the client will pay the HRT a compensation amounting to 50% value of the cancelled order. If the order is cancelled on the day of broadcasting, the compensation will be 75% value of the cancelled order. e) Preference in broadcasting shall be accorded to slots at higher rates in the same hour quota. f) Preference in broadcasting shall be accorded to breaks and lone positions in relation to commercial blocks. Within a break, preference in broadcasting shall be accorded to longer TV spots in relation to shorter spots. g) Preference in broadcasting shall be accorded to commercials ordered earlier and paid in advance. h) The duration of commercial TV spots or still-frames may not be less than 5 seconds. i) Provided the advertiser has not settled the debts to the HRT for broadcasting commercials, which were ordered directly or through an advertising agency, the HRT may reject new orders for broadcasting commercials given directly by the advertiser or given through the advertising agency. III. SPECIAL PROVISIONS ON RATE ADJUSTMENTS a) The rate for airing the commercial within the commercial block before the programme and during the break in the programme shall be determined by the time of airing the commercial. b) When the viewing rate of the commercial spot is in the range of 0% to 0.54%, the viewing rate will be corrected to 0.5%. 7

c) The HRT shall not be obliged to air the commercials of less than 20 seconds duration in the breaks or in lone positions. d) For other programmes and broadcasting forms (entire programmes, programmes under the auspices, sponsored programmes, commercial pieces, shows, scene sets, host announcements, barter operations, package-deals, etc.), the rates shall be determined and negotiated separately with the Board of Directors approval. e) Board of Directors of the HRT may issue special rate-cards and offers, which form an integral part of this Rate card, to determine the rates for airing before and within individual programmes, series and films, sporting events and other programming contents as well as rates for special ways and means of advertising (super-imposed, split screen, product and service placement, etc.) and bonus. f) The rate for airing a single commercial message that contains several firms (advertisers) or several products (trade-marks) of different firms shall be increased 5% to 30% in relation to the basic rate of this Rate card. g) The rate for airing sponsored announcements in the programming of Croatian Television shall be established at an amount of 50% of the rate for airing the sponsored commercial in the announcement or for the entire sponsored announcement if the said announcement and the sponsored announcement are indivisible. h) For ordered and rendered airing of commercials in the last position in a commercial block, the rates shall be increased by 30% over the basic rates contained in the Marketing Services Rate card with General Terms and Conditions; for the second and the one but last position in a commercial block the rates shall be increased by 20% over the basic rates and for the first position in a commercial block the rates shall be increased by 30% over the basic rates. IV. EVENT ANNOUNCEMENTS 1. The rates and conditions for airing announcements of events (concerts and other public performances) that the HRT does not cover for live or deferred broadcasting, as well as for the events that the HRT has not acquired transmission rights, shall be the same as the standard rates and conditions for airing commercials pursuant to this Rate card. 2. The rates and conditions for announcements of events that the HRT is covering for broadcasting in its programmes, as well as for announcements of events that the HRT has acquired transmission rights for, will be the following: a) Event announcements shall be aired in open slots for airing commercials in commercial blocks; b) If an announcement contains a sponsor's message, the conditions and rates for sponsorship announcements under Section III: Special Provisions for Rate adjustments, Paragraph g) shall apply; c) Airing rates: - HTV1 and HTV2 from 00:00 to 12:00 HRK 50 per 1 second - HTV1 and HTV2 from 12:00 to 18:00 HRK 100 per 1 second - HTV1 and HTV2 from 18:00 to 24:00 HRK 200 per 1 second 3. Airing of announcements of events that the HRT is recording for broadcasting pursuant to the aforementioned conditions and rates may commence not more than 20 days prior to the recording date. 8

V. SPECIAL DISCOUNTS Rate discounts shall be granted for airing in open programming slots, as follows: 1. To theatres, museums, art galleries, book publishers and classical music concert organisers: - 60% discount for airing on HTV1 and HTV2 from 18:30 to 22:00; - 80% discount for airing in slots other than those specified above. Book Publisher Association may advertise in the slot TV KNJIŽARA (HTV1 around 22:00 and retransmission on the following day before the Noon News Bulletin). The rate for both airings is HRK 50 per second. If the slot is taken, priority will be given to spots at full rate and TV KNJIŽARA will be aired in the first possible slot. No discounts shall be granted to the said rate, except for the advance payment. Commercial slots after midnight for reports (a format above 60 seconds) on theatres, museums, art galleries, book publishers and classical music concert organisers may be leased at the rate of HRK 125 per minute. No discounts shall be granted to the said rate, except for the advance payment. 2. 50% discount for advertising motion pictures in theatrical distribution. 3. 50% discount for environmental campaigns; 4. 50% discount to trade organisations with head offices in regions of the Republic of Croatia designated as areas under special governmental care in the Special Governmental Care Areas Act (Narodne novine, no. 44/96, 57/96, 124/97). 5. One-time free of charge airing for humanitarian and other campaigns of national interest shall be approved in compliance with programming and marketing possibilities (Red Cross, Croatian Army, Anti-Cancer League, natural disasters, etc.) pursuant to the decision of the Director General of Croatian Radio Television. 6. The Director General of Croatian Radio Television may approve special discounts for advertising activities and campaigns of public and national interest if the parties commissioning such advertising are public or state institutions or their authorised proxies. These special discounts are: 60% for slots between 18:00 and 22:00 and 80% for slots at other times and in compliance with the programming and marketing possibilities of Croatian Television. 7. Advertiser and agency discounts shall not be approved together with special discounts. No monthly index shall be calculated with special discounts. 8. The above discounts can be applied only if ordered according to the duration of the commercial and not according to viewing rates. The only exception is when the advertiser spends his entire yearly budget for TV advertising on Croatian Television. VI. ADVERTISER DISCOUNTS A) SCALE OF VOLUME DISCOUNTS Section Advertiser Volume discount in % For net realisation in HRK from gross rate 1. 3 500,000 to 700,000 2. 4 700.001 to 1,500.000 3. 5 1,500,001 to 2,500000 9

4 6 2,500,001 to 3,300,000 5. 7 3,300,001 to 4,200,000 6. to be agreed separately Above 4,200.001 B) CONDITIONS FOR VOLUME DISCOUNTS TO ADVERTISERS 1. Discounts will be given to the advertisers on a yearly contract basis (commercial or trilateral agreement).it is not possible to get quantity advertiser discount without reaching the agreement with the advertiser directly or without a trilateral agreement: with the advertiser and with the agency. 2. The HRT will do the final computation as at 31 st December of the current year in compliance with the contract and the above scale of volume discounts for advertisers. According to the final computation based on the contract and the above scale of volume discounts, the HRT shall charge the advertiser for the undeservedly given discount or shall grant higher amount of discount when the realisation accomplished is bigger than the discount granted. 3. The group of advertising firms with not less than 51% ownership share shall exercise the right to a group discount. As for individual advertisers, in order to apply the advertiser quantity discount, the agreement is to be made. The agreed net realisation will be the sum of single net realisations of value for commercial services in the programming of Croatian Television. The right to group discounts may be exercised only once within specific group of firms. C) DISCOUNTS ON A SHARE IN ADVERTISER'S TOTAL TV BUDGET: Group number HTV share in total TV budget Discount in % 1. 30% - 40% 2 2. 41% - 50% 4 3. 51% - 60% 6 4. 61% - 70% 8 5. 71% and more To be agreed separately D) CONDITIONS FOR DISCOUNTS ON A SHARE IN ADVERTISER'S TOTAL TV BUDGET: 1. Discounts on the share in advertiser s total TV budget shall be approved according to advertising realisation data on national TV stations based on independent market research data. 2. The realisation shall be established according to the delivered quantity of TRP equivalent (delivered rates of commercials of different duration, reduced to 30 seconds duration) age group 18 to 49 or other age groups that the HRT and the advertiser agree upon and according to the agreed term. 3. Advertisers discounts on the share in TV budget according to reports on monthly delivered quantity of GRP equivalent of the advertiser shall be granted monthly. 10

VII. ADVERTISING AGENCY DISCOUNTS A) AGENCY DISCOUNT 2. The agency discount shall be 15% according to the conditions set in Section B) of this Chapter. 3. The agency discount shall be uniform for all advertising agencies. B) CONDITIONS FOR ADVERTISING AGENCY DISCOUNTS 1. The advertising agency must be duly registered to carry out marketing activities and meet technical and staffing conditions for excellent performance of tasks on behalf of advertisers airing on the HRT. If requested by the HRT, the agency must produce the relevant evidence on compliance with the above conditions. 2. An advertising agency shall acquire right to agency discount by making and realising the contract on airing commercials under the terms and conditions from Item 3. 3. An agency discount shall be approved to an agency that negotiates and realises commercials in total annual value of at least HRK 1,000,000.00. 4. Upon invoicing the advertising agencies, the HRT shall also approve advertiser discounts in the course of the year, provided the trilateral contracts with the set discounts are made. 5. Advertising agencies shall conduct independently comprehensive media planning of promotions for a single advertiser, taking into consideration the overall promotional offer of Croatian Television Marketing Department. VIII. CONDITIONS FOR ADVERTISER DISCOUNTS AND ADVERTISING AGENCY DISCOUNTS The advertiser discounts from Section VI above and the Advertising agency discounts from Section VII above shall be approved under the following conditions: 1. Discounts shall be approved upon invoicing according to the contracts made during the year. 2. Discounts to advertisers and to advertising agencies shall be approved when the advertising rate is set according to the duration of the commercial or according to the viewing rate of the commercial. 3. A discount from point 1 and 2 shall not be approved if there is no yearly agreement. 4. The advertiser who has made the trilateral agreement with the HRT (the advertiser, the agency, the HRT) or the direct agreement with the HRT (the advertiser and the HRT), may be approved the advertiser quantity discount. 5. In case of making the trilateral agreement (the agency, the advertiser, the HRT), the agency has right to take into account the net realisation of such client into its own net realisation and based on this to make the agency agreement with the agency quantity discount on rates. However such discounts to rates may be applied only to advertisers without trilateral agreements. 11

6. No discounts shall be approved (full rate to be paid) to the advertiser and/or the advertising agency with competitive activities (the competitor), save if, because of the HRT interest, Director General of the HRT will decide otherwise. Inasmuch as it is ascertained upon annual settlement as at 31 st December that the advertiser or the advertising agency has not fulfilled the conditions negotiated for and/or approved discounts during the year, the HRT shall charge the advertising agency and the advertiser for the difference between the approved discounts for which conditions were not fulfilled. Inasmuch as it is ascertained upon annual settlement that a lower discount was approved for the advertiser or the advertising agency than warranted by the Croatian Television Marketing Services Rate card and General Terms and Conditions, the difference in the discount shall be approved to their benefit upon annual settlement. IX. PRODUCTION RATES 1. SPOT PROSPECTUS Beta off-line editing in electronic technology with the norms: 1 hour of recording, 1 hour of editing, ½ hour of dubbing with accompanying costs. In case of more exacting production, further costs will be added to the established cost of HRK 3,800.00. HRK 3,800.00 2. TELEVISION REPORT a) Television report shooting in Zagreb b) Television report shooting outside Zagreb HRK 9,500.00 HRK 9,500.00 + variable travel cost 3. STILL-SCREEN HRK 1,000.00 4. COMMERCIAL POSTCARD Based on budget 5. ELECTRONIC ANIMATION a) Simple b) Complex c) Exacting HRK 400.00 / 1 sec. HRK 1,000.00 / 1 sec. HRK 2,000.00 / 1 sec. 6. STUDIO DRAWING FOR PRIZE GAMES HRK 10,800.00 7. GROUP GREETINGS HRK 1,500.00 per greeting 8. ECONOMICAL TV GUIDE HRK 2,500.00 per minute 9. TELEVISION SPOT Based on budget 10. IMAGE AND SOUND PROCESSING AND PRODUCTION OF COPIES a) music selection up to 1 minute each additional minute b) electronic dubbing up to 1 minute c) electronic dubbing with music selection up to 1 minute d) copying to VHS Television spot 180 90 210 390 180 12

Television report for 1 minute e) recording text onto television spots or reports rate for 1 television spot or 1 television report f) recording of film rolls up to 3 minutes 11. TRANSMISSION BY LINK a) Television spot up to 30 seconds each additional spot in the same slot b) Television report up to 5 minutes each additional minute in the same slot 180 300 1,800 300 180 600 300 A) The final rate for production of commercial materials with dubbing and recording, as specified under items 1, 2 and 3, shall be determined upon completion of production based on actual production costs after the client approves the production plan. B) All other services not specified in this Rate card, shall be negotiated separately. X. GENERAL CONDITIONS FOR RENDERING MARKETING SERVICES A) CONTRACTING It is possible to contract airing the commercials with the rates of airing established per second in a set slot with the agreed discounts and airing with the rates established according to the audience rates for programming contents in which presented (TRP) with the agreed discounts. The contents of the Agreement shall be confidential, as well as all the data the parties have exchanged before and in the course of making the Agreement, and the data shall not be disclosed except by law enforcement. If the client (the agency or the advertiser) shall not fulfil the agreed financial duties, he will be obliged to pay the sum amounting to 5% of the difference between the agreed and the executed value during the term. B) PAYMENT CONDITIONS 1. The fee for marketing services shall be paid within a period of not more than thirty (30) days after delivery of the invoice. Invoices shall be delivered once a month based on completed orders for airing the services that are rendered continually (several times) during the month. The invoices for services not performed continually during the month (ad hoc services) shall be delivered immediately after completing the order, namely after rendering the services. If the client's head office is outside of the Republic of Croatia, the value of airing shall be computed in foreign currency (US$,, etc.) and the rates shall be computed pursuant to this Rate card and the mean exchange rate of the Croatian National Bank (HNB) effective as at the invoicing date. 2. For advance payments of half-year or yearly agreed sum before starting the airing, the HRT shall start negotiating on possible advance payment discount with the agencies or the advertisers on 31 st January or on 31 st July. This can happen only if the advance payment for the advertiser is made before the airing service is done and provided the advertiser or the agency has no unpaid debts for advertising services to the HRT. 13

3. Payment shall be made according to legal ways and forms of payment. The client shall be obliged to provide payment security instruments upon signing the agreement. 4. In case of late payment, legal default interest shall be charged. Interest shall be paid within a period of not more than 15 (fifteen) days after the date of computation. 5. Should the client withdraw from a concluded contract or order, such client shall pay damages to the HRT. 6. The HRT has right to amend this Rate-card. In case of changes of rates for services during the calendar year, the client shall pay the fees effective as of the date on which the services are rendered. In case of advance payment, the fees shall be computed according to the Rate-card effective on the date of payment, but only up to the date of the new Rate-card. 7. The rates shall not include the value-added tax (VAT), which shall be computed separately and the HRT shall charge it to the client. 8. In case of leasing the programming slots (air-time), the client shall not negotiate the rates with the third parties under the level specified in the effective Rate card nor the discounts above the level specified in the effective Rate-card. 9. The Settlement between the advertisers and/or the agencies on one side, and the HRT on the other, as well as approval of discounts, shall be based exclusively on the authentic documentation. 10. The deadline for complaints (refunds) on delivered invoices for marketing services shall be not more than eight (8) days after the date on which the invoice is received. The deadline for complaints pertaining to completed commercial services (objection) shall be not more than15 (fifteen) days after the date of airing or rendering the services. The HRT shall consider no complaints outside of these deadlines. 11. If the client that has its registered head office outside of the Republic of Croatia pays for commissioned commercial services in advance, the mean exchange rate of the Croatian National Bank effective on the payment date shall be computed. If the payment is done according to the estimate, the mean exchange rate of the Croatian National Bank effective on the date of issue of the estimate shall be computed on the invoice. C) OTHER CONDITIONS (AIRING, PRODUCTION) 1. Croatian Television shall be under no obligation to air the commercial material of the client: a. if the material does not comply with technical standards (technical correctness, standard format) and programme requirements for airing on Croatian Television, as well as with effective legislation; b. if during the slot foreseen for airing the commercials another programme of public or national interest is aired or if airing during a specific slot is prevented by force majeure; c. if the client fails to adhere to the negotiated provisions or General Terms and Conditions of Croatian Television; d. if the client fails to provide evidence of regulated rights from Item 4; e. if the content of the commercial does not comply with the effective legislation, general acts or the established programming policy of Croatian Television. 2. Commercial material for airing shall be delivered by the client not less than 72 hours prior to airing. 14

3. The HRT reserves the right to adapt for airing on television the text of the commercial prior to dubbing, and to amend a portion of the text as needed with the client s consent, while ensuring that the essential content of the message is not altered. 4. The client shall be obliged to arrange all copyrights, musical, performing and other rights for using and airing of commercial material on the HRT and, upon delivery of material to the HRT, to provide evidence of duly arranged rights. The material shall comply with the effective legislation. All possible claims by third parties pertaining to the client's rights shall be assumed by the client. 5. The HRT shall secure copyrights and performing rights to air commercial materials produced in house unless arranged otherwise with the client. After completion of production, the HRT shall give the client one copy of the materials produced in house at the client's request and after the client fulfils all the obligations under the production arrangements. 6. In case of disputes, the court with effective jurisdiction in Zagreb and the laws of the Republic of Croatia shall be deemed authoritative. XI. ENTRY INTO FORCE AND APPLICATION OF CROATIAN TELEVISION MARKETING SERVICES RATE CARD WITH GENERAL TERMS AND CONDITIONS This Croatian Television Marketing Services Rate card with General Terms and Conditions has been adopted by the Board of Directors of the HRT at its 286 th Session held on 2 nd February 2010. This Croatian Television Marketing Services Rate card with General Terms and Conditions shall enter into force on the date of its posting on the HRT bulletin board. Upon beginning of application of the Croatian Television Marketing Services Rate-card with General Terms and Conditions specified in the preceding paragraph, the Marketing Services Rate-card with General Terms and Conditions of 1 st March 2009 adopted at the 247 th session of the Board of Directors of HRT on 27 th February 2009 shall no longer be valid. This Croatian Television Marketing Services Rate card with General Terms and Conditions shall be posted on the HRT bulletin board, the HRT Web-site at www.hrt.hr and on the HRT Teletext. BOARD OF DIRECTORS OF HRT Acting Director General of the HRT Josip Popovac This Croatian Television Marketing Services Rate card with General Terms and Conditions has been posted on the HRT bulletin board on 3 rd February 2010, as of when it entered into force. Secretary to the Board of Directors of the HRT Alja Ljubić Budanko 15