Pursuant to Article 162 of the Copyright and Related Rights Act (Official Gazette Narodne novine Nos. 167/03 and 79/07) (hereinafter: CRRA)

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1 Pursuant to Article 162 of the Copyright and Related Rights Act (Official Gazette Narodne novine Nos. 167/03 and 79/07) (hereinafter: CRRA) the CROATIAN COMPOSERS SOCIETY (HDS) at the session of its Presidency held on 25 November 2008, the CROATIAN PERFORMERS' RIGHTS COLLECTING SOCIETY (HUZIP), at the session of its Managing Board held on 1 December 2008, the ASSOCIATION FOR THE PROTECTION, COLLECTION AND DISTRIBUTION OF PHONOGRAM PRODUCERS' RIGHTS (ZAPRAF), at the session of its Managing Board held on 9 December 2008, hereinafter: Rights Holders Associations, have established this RATE SCHEDULE of collective remuneration for broadcasting or re-broadcasting of non-dramatic copyrighted musical works Article 1 1) Unless otherwise specified by separate contracts concluded between users and the Rights Holders Associations, the provisions of this Rate Schedule shall be applicable to all users that broadcast and/or re-broadcast television and/or radio programming. 2) This Rate Schedule determines the collective remuneration for broadcasting and re-broadcasting of non-dramatic musical works via electronic media to which individual groups of holders of copyright and related rights are entitled, with such remuneration collected by the Rights Holders Associations in their own name and on behalf of the rights holders. 3) The Croatian Composers Society (hereinafter: HDS), pursuant to the contract which it has concluded, in compliance with Article 158(2) of the CRRA, with the Rights Holders Associations, shall collect the collective remuneration for the broadcasting of non-dramatic musical works via electronic media, on behalf and for the account of the aforementioned Rights Holders Associations. 4) A user may negotiate remuneration individually with each of the Rights Holders Associations in accordance with the currently valid contracted share in collective remuneration among the Rights Holders Associations, increased by 20%. Article 2 For the purpose of this Rate Schedule, the following terms and/or expressions shall have these meanings: Collective remuneration total amount of remuneration including copyright, performance and phonographic remuneration; Electronic media all media that are not print media, in particular: radio, television, electronic publications, internet and satellite, cable, IP (Internet Protocol) and similar systems; Broadcasting any publication of programming content and programming services via electronic media in the form of television or radio programmes; Re-broadcasting any simultaneous, integral and unmodified secondary broadcasting (distribution) of television or radio programming, made by a user other than that which executed the primary broadcasting;

2 Revenues all revenues earned by the user from broadcasting and/or re-broadcasting of television or radio programming via electronic media (e.g. marketing, subscription, subsidies and similar); User any physical or legal person engaging in broadcasting and/or re-broadcasting of television and/or radio programming. Article 3 1) Collective remuneration for broadcasting of non-dramatic musical works is set as follows: FOR TELEVISION PROGRAMMING: FOR RADIO PROGRAMMING: 4% of revenues 8% of revenues 2) Collective remuneration for re-broadcasting of non-dramatic musical works is set as follows: FOR TELEVISION PROGRAMMING: FOR RADIO PROGRAMMING: 4% of revenues 8% of revenues The revenues of the user shall be the total revenues earned by the user through the broadcasting and/or re-broadcasting of the television or radio programming. Article 4 1) The collective remuneration specified in Article 3 of this Rate Schedule shall be paid by users to the HDS as monthly advance payments. The amount of the monthly advance payment shall be computed on the basis of the annual remuneration for the user in the preceding year. The amount of the monthly advance payment for new users shall be computed on the basis of the minimum collective remuneration set in accordance with Article 5 of this Rate Schedule. 2) The final settlement of the remuneration shall be made on the basis of accurate data on revenues (closing accounts) for the year to which the remuneration pertains, and the user shall be obliged to submit such data not later than 30 April of the subsequent year for the preceding year. 3) The user shall settle the difference between the yearly collective remuneration established by the final settlement and the total amount of paid monthly advance payments for that year. 4) Insofar as it is determined by the final settlement that the user has paid, through monthly advance payments, an amount higher than the annual collective remuneration established by the final settlement, the user shall be entitled to reimbursement of the amount overpaid, provided that a written request is submitted to the HDS within a period not exceeding 15 days from delivery of the final settlement. Insofar as the user fails to submit a request for reimbursement within the specified period, the amount overpaid shall be deemed an advance for the future period. 5) Insofar as the user does not submit accurate data on revenues required for computation of remuneration in compliance with paragraphs (1) and (2) of this Article, the payable remuneration shall be double the standard remuneration. Article 5

3 1) The collective remuneration specified in Article 3 of this Rate Schedule may under no circumstances whatsoever be less than the protective minimum collective remuneration as shown in Tables 1 and 2: Table 1. Annual minimum collective remuneration for television stations Concession level Points City 59,524 County or cities: Split, Rijeka, Osijek 89,286 Region (group of counties), City of Zagreb or Zagreb County 119,048 National 1,785,714 Table 2. Annual minimum collective remuneration for radio stations Concession level Points municipality or town with population up to 5,000 13,393 town, pop. 5,000-10,000 26,786 town, pop. 10,000-15,000 40,179 town, pop. 15,000-30,000 53,571 town, pop. 30, ,000 66,964 city, pop. 100, ,000 or county 140,625 city with pop. over 300, ,107 City of Zagreb and Zagreb County 214,286 group of counties 368,304 national 468,750 2) The annual minimum collective remuneration for television and radio programming broadcast exclusively outside terrestrial frequencies shall be set, depending on whether it is a matter of television or radio programming, at 50% of the minimum collective remuneration from the preceding paragraph specified for the lowest television or radio concession level. 3) In the case of simultaneous (parallel) broadcasting of terrestrial television or radio programming, via satellite and/or by web streaming, the annual minimum collective remuneration set in accordance with paragraph (1) of this Article for terrestrial programming shall be increased by 20% for each individual simultaneous broadcast. 4) The minimum collective remuneration for re-broadcasting of television and/or radio programming via closed cable, satellite, IP (Internet protocol) and similar network systems shall be set as follows: the value of one point reduced by 30% is multiplied by the number of subscribers to the given network system and the number of aired programmes. Article 6 Pursuant to Articles 166 and 168 of the Copyright and Related Rights Act (Official Gazette Narodne novine Nos. 167/03 and 79/07), users shall be obliged to submit, to the Rights Holders Associations, data on mandated forms on the musical works used, not later than the fifteenth day of the current month for the preceding month. Article 7 1) In their exercise of the monitoring of the data specified in Article 4(1), (2) and Article 6 of this Rate Schedule, the Rights Holders Associations may seek additional data from users, and they shall be entitled to review the corresponding documentation, which users, in compliance with the Copyright and Related Rights Act (Official Gazette Narodne novine Nos. 167/03 and 79/07) are obliged to facilitate. 2) In their exercise of the monitoring specified in paragraph (1) hereof, the Rights Holders Associations may request the assistance of official state inspection agencies, the customs service and

4 the relevant police departments and police stations in compliance with the Copyright and Related Rights Act (Official Gazette Narodne novine Nos. 167/03 and 79/07). 1) The value of a point for 2008 is HRK Article 8 2) The current value of the point shall be adjusted on an annual basis using a rate set at half of the sum of the annual rate of change in the consumer price index and the annual rate of change in gross wages of all persons employed in the Republic of Croatia. The relevant data for computation shall be the data and official publications of the Central Bureau of Statistics. The adjustment of the point value shall be performed on 1 January of each calendar year, beginning with 2009, by application of the last published annual indices. Article 9 1) As at the date of entry into force of this Rate Schedule, the following provisions shall no longer be valid: 1. In the Ordinance on Remuneration for Public Performance and Communication to the Public of Musical Works and Remuneration for Use of Musical Performance Materials (Official Gazette Narodne novine Nos. 80/92, 72/93, 29/95, 50/95, 1/97, 75/97, and Glasnik DZIV-a, No. 1/2007), the provisions on the Remuneration Tariff for Public Performances and Communication to the Public of Musical Works pertaining to radio and television (Tariff No. 15), although the provision pertaining to radio and television stations which collect subscription fees (Tariff No. 15, paragraph 6) shall remain valid. 2. In the Ordinance on Remuneration for Use of Recorded Performances by Performing Artists (Official Gazette Narodne novine No. 1/97 and Glasnik DZIV-a, No. 1/2007), the Remuneration Tariff for Broadcasting, Communication to the Public and Other Forms of Use of Recorded Performances by Performing Artists pertaining to radio and television programming (Tariffs Nos. 16 and 17), although the provisions pertaining to radio and television stations which collect subscription fees (Tariff No. 16, paragraph 5 and Tariff No. 17, paragraph 5) shall remain valid. 3. In the Ordinance on Remuneration for the Use of Phonograms (Official Gazette Narodne novine No. 116/00 and Glasnik DZIV-a, No. 1/2007), the provisions pertaining to radio and television programming (Tariffs Nos. 16, 17 and 18), although the provisions pertaining to radio and television stations which collect subscription fees (Tariff No. 16, paragraph 5 and Tariff No. 17, paragraph 5) shall remain valid. 2) The remaining provisions of the tariffs specified in the preceding paragraph shall remain effective, insofar as they do not contravene the provisions of this Rate Schedule. Article 10 This Rate Schedule shall enter into force on the date of its adoption, and it shall be applied as of 1 January CROATIAN COMPOSERS SOCIETY (HDS) Hrvoje Hegedušić, President CROATIAN PERFORMERS' RIGHTS COLLECTING SOCIETY (HUZIP) Zvonimir Stanislav, President

5 ASSOCIATION FOR THE PROTECTION, COLLECTION AND DISTRIBUTION OF PHONOGRAM PRODUCERS' RIGHTS (ZAPRAF) Želimir Babogredac, President