Terms of sale for advertising in RTV Slovenija programmes I. GENERAL CONDITIONS Together with the general operating conditions, terms of sale for advertising on RTV Slovenija, define concepts and regulate procedures and methods of service orders, as well as representing the rules of advertising at RTV Slovenija. In accordance with these conditions and terms, the Marketing Department of RTV Slovenija prepares offers and receives purchase orders. Rate cards, scales of discount, procedures, offers, special offers and agreements are all integral parts of the conditions and terms. RTV Slovenija undertakes to perform an advertising service on the basis of the received purchase order of the advertiser, agency or association (hereinafter referred to as the Client) or on the basis of a signed agreement with an advertiser, agency or association, providing that the Client has its liabilities with specific reference to RTV Slovenija are fully discharged. If the Client has outstanding financial obligations, RTV Slovenija has the right not to broadcast the ordered advertisement and can demand an additional security for the payment and broadcast of the advertisement with the consent of the general manager of RTV Slovenija. RTV Slovenija concludes contracts with clients in accordance with these terms of sales to the amount greater than 12,500 €, and for advertising only in regional centres to the amount above 2,000 €. If the amount is lower, the advertising service contracts are performed on the basis of the received and signed purchase order, in written or electronic form. Clients can conclude the co-operation contracts with persons in charge within the Marketing Department at RTV Slovenija. Advertisement purchase orders are received by the Marketing Department at RTV Slovenija, which is the only department within RTV Slovenija, competent for the placement of advertisements in RTV Slovenija programmes. RTV Slovenija can co-operate directly with individual advertisers, who otherwise work with agencies or an association of agencies, if this interest is based upon mutual consent. Such co- operation takes place independently of an agency or association of agencies and is not considered with regard to their agreed annual contractual amount. II. OFFER FOR ADVERTISING Advertising space is marketed in accordance with offers for advertising in radio, television and other programmes. These offers are dealt with in the public realm. The offer normally contains the announcement of a programme; the announcement of individual radio or television programmes, television series, live sports broadcasts, programme scheduling, financial volume of advertising in individual timings (rate per second in euro) and all other advertising possibilities. All offers, additional information and changes regarding advertising in RTV Slovenija programmes are published on the web page www.rtvslo.si/marketing. RTV Slovenija reserves the following rights: - To change published offers for advertising, timing or rates. All changes have to be published on its web page. - To publish special offers for advertising and sponsorships in addition to its regular offers. - To publish a last minute offer for advertising in case of eventual new forms of advertising or in case of outstanding events placed within the programme. - To prepare special package offers in accordance with the terms of sale and to make them public. III. ADVERTISEMENT PURCHASE ORDERS RTV Slovenia accepts purchase orders through the postal service, fax or by E-mail. All purchase orders have to be authenticated with the original purchase order, namely with the signature and seal or with an electronic signature, one day before the first broadcast. If RTV Slovenija doesn't receive such authentication of a purchase order upon the day of expected performance of the purchase order, RTV Slovenija is not bound to carry out the purchase order terms. In the total amount of annual turnover of an individual client (advertiser or agency), only authenticated and published purchase orders with the indication of the advertiser are taken into account. With regard to the sum of the total annual turnover of an association of agencies, only purchase orders of the association are taken into account (and not the purchase orders of individual members within the association itself). The client is obliged to make a purchase order at least five working days before the first broadcasting takes place on television or radio programmes and also in the RTV Slovenija web pages. The client can revoke the purchase order for advertising in written form only and at least three working days before the expected first broadcasting on television or radio programmes respectively and also the first publishing on the web pages. Advertisements for television and radio have to be at least 5 seconds long otherwise the purchase order won't be accepted. RTV Slovenija reserves the right to issue an invoice to the amount of 50 % of the total cost of a revoked purchase order, if a client cancels ordered and authenticated advertisements with less than 14 days before the day of first broadcasting or publishing is due to take place. The cancellation of ordered and authenticated advertisement purchase orders with less than 3 days before the first broadcasting or publishing is not possible. In this case, RTV Slovenija invoices the client for the full amount for the ordered advertisements. IV. CONTENT RELATED AND TECHNICAL REQUIREMENTS RTV Slovenija accepts purchase orders only for advertisements, which are in compliance with the proper legislation, regulations and codes. RTV Slovenija is not obliged to broadcast or publish any advertisements that are not in compliance with the legal criteria, regulatory provisions or codes and will refuse to broadcast or publish them. The client has the right to demand a written explanation if a refusal to broadcast or publish is invoked. RTV Slovenija is obliged to refuse broadcasting or publishing of advertisements in the following cases: - If the advertisement is not in accordance with the programming principles of RTV Slovenija. - If the advertisement uses visual or music material from the RTV Slovenija archives or documentation centre without prior consent from RTV Slovenija. - If the subject-matter of the advertisement is in contravention with the international convention with specific reference to the protection of children. - If the advertisement advertises phone lines for erotic services or fortune telling services. RTV Slovenija doesn't take any responsibility regarding the subject-matter and the accuracy of the factual claims of any advertisements. The total responsibility will fall upon the client. Prior to broadcasting, RTV Slovenija reviews all advertisements regarding their subject- matter, while a technical team checks all the technical parameters. Advertisements for RTV Slovenija have to be in one of the following standard formats: Betacam SP, Betacam Digital, IMX. All the formats mentioned above have to be recorded in PAL 625/25. Advertisements for Radio Slovenija have to be in one of the following standard formats: magnetic tape (the maximal magnetizing of the tape is 513nWB/m, 38 cm/s, with an introduction before and after the record), mini disc standard play, CD audio (CD: Wav 44.1 KHz; CD: Mp3, 44.1 KHz, bit stream 320 Kbps), E-mail (Wav 44.1 KHz or Mp3 format 44.1, bit stream 320 Kpbs, with approximately 0.5 second of recorded silence before and after the record). The revision and copying of the advertisement is paid by the client in accordance with the valid rate card. RTV Slovenija allows the producer of an advertisement to be signed on advertisements. The client is obliged to deliver the advertisement on the appropriate medium, at least five working days before the first broadcasting on the television programme or the first publishing on the web pages and at least three working days before the first broadcasting on a radio programme. The client is obliged to provide all advertisements with a declaration, which states: a.) The name and the address of the company/agency, which made the advertisement b.) The title of the advertisement c.) The exact length of the advertisement. RTV Slovenija reserves the right to copy the ordered advertisements to the appropriate medium and then includes them to its advertisement archive. RTV Slovenija will hand over the delivered video and magnetic tapes with the recorded advertisement, only to the authorised client's employee. RTV Slovenija will forward the advertisements from its archive only upon the client's order. The copying of an advertisement is paid by the client according to the valid rate card. V. ADVERTISING RATES AND RATE CARDS Advertising rates in individual advertising times are defined in the offer for advertising. The value of advertising is normally defined with €/s and the rate cards are made public. RTV Slovenija reserves the right to change the rates, namely, publishing last minute offers, it can raise or lower the rates for all advertisers and are bound under the same conditions. According to the achieved net turnover of the previous calendar year and to the expected turnover for the current year, RTV Slovenija can acknowledge the clients with concluded and signed contracts on advertising discounts, which are in compliance with these terms of sale, provisions of the contracts and other agreements made in written form. In the event of non- compliance with the agreed net turnover, the contractor can determine anytime during the year to what rate of the discount the client is actually eligible for and can suggest any change of the agreed discount rate. The contractor informs the client about this matter in writing. VI. DISCOUNTS AND SCALES OF DISCOUNT Discounts are calculated on the bases of the valid scales of discount. The basis for acknowledging a discount is realized in the annual turnover, which is defined as the net amount accumulated from the annual advertising and sponsorship of the individual client in RTV Slovenija programmes. The net worth of the advertising is that value after the deduction of all discounts from the value, stated in the rate card (gross value). VAT is not taken into consideration. The maximum possible discount rate for an advertiser under these Terms of Sale is 60 %. For calculating the net worth of annual advertising, only the paid realization of purchase orders during the period of the validity of the contract is taken into consideration. This net worth includes all performed orders for advertising and sponsorship. In case of non- compliance with the agreed amount, RTV Slovenija issues the client a debit for a difference between the foreseen and the actual realization of the contract, which is in accordance with the lower rate of discounts with regard to the scale of discounts. The discounts are adjusted to the achieved turnover in the current year, in a manner which allows the acknowledgement of a higher rate of discount, which is in accordance with the valid scale of discounts on the first following invoice, for clients with concluded contracts, who have exceed a certain amount of advertising. The scales of discounts are an integral part of the terms of sale for advertising in RTV Slovenija programmes. The system consists of the following sets of discounts: 1. Discounts for advertising through agencies These discounts consist of agency discounts and quantity discounts for purchase orders through agencies. An agency is on the basis of the net turnover of the previous year is entitled to an agency discount. The same holds for agencies which operate through an association of agencies. The quantity discounts for purchase orders through an agency is an additional discount and is determined for an individual advertiser, according to its net turnover in the previous year and also of its forecasted turnover for the current year. The agency discount and the quantity discount for clients through an agency are not added together. AGENCY DISCOUNTS (net) up to 420,000 EUR 7.5% above 420,000 EUR 15% above 630,000 EUR 16% above 840,000 EUR 17% above 1,250,000 EUR 18% above 1,670,000 EUR 19% above 2,100,000 EUR 20% ADDITIONAL QUANTITY DISCOUNTS FOR CLIENTS THROUGH AGENCIES (net amounts) up to 4,200 EUR - from 4,200 to 12,500 EUR 5% from 12,500 to 25,000 EUR 6% from 25,000 to 42,000 EUR 7% from 42,000 to 84,000 EUR 8% from 84,000 to 125,000 EUR 10 % from 125,000 to 250,000 EUR 12 % from 250,000 to 420,000 EUR 16 % from 420,000 to 585,000 EUR 20 % from 585,000 to 750,000 EUR 23 % from 750,000 to 1,050,000 EUR 26 % from 1,050,000 to 1,280,000 EUR 29 % from 1,280,000 to 1,585,000 EUR 32 % above 1,585,000 EUR 35 % 2. Discounts for direct clients Advertisers, who advertise directly, without the mediation of agencies, are calculated on the basis of their net turnover in the previous year and their forecasted turnover for the current year and who are then entitled to the quantity discount for direct clients. QUANTITY DISCOUNTS FOR DIRECT CLIENTS (net values) up to 4,200 EUR 10 % from 4,200 to 12,500 EUR 15 % from 12,500 to 25,000 EUR 16 % from 25,000 to 42,000 EUR 17 % from 42,000 to 84,000 EUR 18 % from 84,000 to 125,000 EUR 21 % from 125,000 to 250,000 EUR 24 % from 250,000 to 420,000 EUR 29 % from 420,000 to 585,000 EUR 34 % from 585,000 to 750,000 EUR 38 % from 750,000 to 1,050,000 EUR 42 % from 1,050,000 to 1,280,000 EUR 46 % from 1,280,000 to 1,585,000 EUR 50 % above 1,585,000 EUR 54 % 3. Additional discounts for volume guarantee (discounts for associations) An additional discount for volume guarantee is the compensation to associations for their work and functions performed within the market (simplification of ordering, simplification of payment and taking over the risk of non-payment). This discount is subject to the annual contract between a certain association and RTV Slovenija, where RTV Slovenija reserves the right to define the upper limits of such additional discount. All associations with concluded annual contracts with RTV Slovenija, with which they bind themselves to provide a certain amount of advertising on RTV Slovenija programmes, are then eligible to the discount for associations. An association is an organization which unites at least three agencies and provides an annual net worth of advertising in RTV Slovenia programmes to the value of at least 2,100,000 €. 4. Discounts for advertising solely on programmes of the regional RTV centres of Maribor and Koper-Capodistria For advertising direct clients, solely in regional centres a special additional quantities for advertising on programmes of regional RTV centres is acknowledge. This discount is not added to the quantity discount for direct clients and is acknowledged only in the case of advertising solely in regional centres. ADDITIONAL QUANTITY DISCOUNTS FOR DIRECT CLIENTS OF RCs (net amounts) up to 12,500 EUR 3% from 12,500 to 25,000 EUR 6% from 25,000 to 42,000 EUR 9% from 42,000 to 84,000 EUR 12 % above 84,000 EUR 15 % VII. OTHER SPECIAL DISCOUNTS Beside discounts from item No VI, RTV Slovenija offers other special discounts for organizations who substantially contribute to the realization of individual programme projects. RTV Slovenia normally acknowledges such discounts in cases of programme and business co-operation or the fulfilment of activities, defined within the law and other documents. The upper margin of these other special discounts is 60 % of special discount. Other organizations, eligible for the special 60 % discount are cultural and artistic institutions, museums, libraries, theatres, cultural associations, state bodies and state institutions, sports organizations and other similar organizations, mainly for broadcasting information and announcements regarding events of general interest and where participation is free. RTV Slovenija doesn't acknowledge special discounts to organizers of popular music events, with the exception of those cases stated above. In case of not fully occupied advertising blocks, RTV Slovenija can grant advertising with additional discounts. The person authorized for granting advertising with such additional discounts and for defining their amount, is the general manager of RTV Slovenija. VIII. ADVERTISING FREE OF CHARGE RTV Slovenija normally doesn't allow for free of charge advertising. However, the exceptions to this rule are those national or international humanitarian actions and actions of major importance for society as a whole, organized by national or international organizations, who registered for performing such activities. The free of charge broadcasting of advertisements is limited in quantity, namely, up to 5 advertisements for one single action. For larger numbers of advertisements, provisions regarding other special discounts (Item No. VII) are valid. The person who decides whether an advertisement will be broadcasted free of charge or not, is the general manager of RTV Slovenia, taken on the basis of written requests by direct clients. RTV Slovenija will not broadcast free of charge, any advertisements which may include the names of other sponsors of the client. For advertising the actions, which have a major importance for society, for advertising humanitarian, non-commercial sports, cultural, scientific and educational events and other humanitarian organizations, registered for performing such activities, provisions regarding other special discounts are valid (Item No VII.). RTV Slovenija doesn't facilitate the making of free of charge advertisements. Special discounts, acknowledged for advertising are not valid for designing and making advertisements. These services are charged according to the valid rate card. IX. CONTRACT These terms of sale are valid for advertising on RTV Slovenija programmes. In accordance with the provisions regarding the terms of sale, some provisions are valid solely for clients who conclude an annual contract for advertising with RTV Slovenija. RTV Slovenija can conclude such contracts with advertisers, directly or with agencies respectively or associations of agencies. An annex with the defined terms of sales for an advertiser for the calendar year and its net turnover on RTV Slovenija programmes is an integral part of the contract. If the annual contract is concluded with an agency or association, the terms for individual advertisers are valid, only when the annex is made for each advertiser on a separate basis. The legal foundation for acknowledging the quantity discount is stated within the annex to the contract, which is signed by the agency, advertiser and RTV Slovenia and initialled by the association. X. PAYMENT FOR SERVICES RTV Slovenija issues invoices for ordered and authenticated advertising within eight days after the last broadcast has taken place. If a purchase order is for a longer period, namely if the time span between the first and the last broadcast is more than 35 days, RTV Slovenija charges and issues the invoice for the services at the end of the month in which the advertisement was broadcasted last. RTV Slovenija charges valid penalty interests for late payments with regard to performed services. Debtors are obliged to pay these interests within the legal deadline. RTV Slovenija reserves the right not to provide new services for clients with outstanding debts until they settle their accounts in full. The payment deadline for advertisers without an advertising contract is 8 days from the date of issuing the invoice. Payment deadlines and other terms of payments for clients with contracts are defined with the contract itself. RTV Slovenija reserves the right to demand payment on the basis of the pro forma invoice for clients without an advertising contract. XI. SECURITY FOR THE PAYMENTS Instruments for the security for the payments for contractual partners are defined with the contract. However, RTV Slovenija reserves the right to demand security for the payment in the case of poorer credit ratings or the payment discipline of a client prior to the broadcasting of the client's advertisement, regardless of the contractual provisions regarding security for said payment. XII. COMPLAINTS RTV Slovenija accepts complaints within 2 working days after the broadcasting of the advertisement. After the final date, RTV Slovenija is not obliged to take any complaint into consideration. The client can refuse an invoice within 8 days after which the invoice was issued, in writing and with a detailed explanation of the reasons for the refusal. The client has to return the original copy. After the final date, RTV Slovenija is not obliged to take the refusal of the invoice into consideration. XIII. OTHER SERVICES Other marketing services consist mainly of making radio and television advertisements, services for the radio and television archive and other services. Terms for ordering these services, rate cards and other terms are defined separately and represent an integral part of these terms of sale. XIV. TRANSITIONAL AND FINAL PROVISIONS These terms of sale come into force since January 1st, 2008 and are valid until they are either revoked, changed or an adoption of new terms of sale are made, which have to be published in the public domain. Public notices are notices on bulletin boards, on the web pages www.rtvslo.si or other forms of public notices. On the day these terms of sale came into force, all hitherto terms of business and sale of advertising on RTV Slovenija cease to be valid.
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