Translation from Romanian

ORDER no. 197/09.05.2019

amending Order no. 262/2018 which amends Order no. 232/2018 regarding the establishment of the Romanian Film Commission and the approval of its

Regulation on the Organization and Functioning Considering - the provisions of art. 12, par. (1) and (10) of the Government Decision no. 421/2018 for the establishment of a state aid scheme for the support of the cinematographic industry, amended and supplemented by the Government Decision no. 90/2019; - Order of the President of the National Commission for Strategy and Prognosis no. 124 of 7 March 2019 amending Order no. 316/2018 regarding the composition of the Romanian Film Commission for the session 2019. Under the provisions of Art. 6 par. (2) of the Government Ordinance no. 22/2007 (r), on the organization and functioning of the National Commission for Strategy and Prognosis, modified and supplemented by the Government Emergency Ordinance no. 28/2018, approved with amendments and completions by Law no. 226/2018. president of the National Commission for Strategy and Prognosis, issues this order. Art. 1. The composition of the Romanian Film Commission, as set out in Annex no. 1 of the Order of the President of the National Commission for Strategy and Prognosis no. 124/2019, is an integral part of this order. Art. 2. The Regulation on the Organization and Functioning of the Film Commission, as set out in Annex no. 2, shall be amended and shall form an integral part of this Order.

President of the National Commission for Strategy and Prognosis

Ion GHIZDEANU

APPENDIX no. 1 Romanian Film Commission 1. Adrian Titieni - actor, PhD. - Honorary President of UNATC 2. Calin Stanculescu - film critic, member of the Film Critics Association - Union of Cinematographers in Romania, member of the European Film Association Academy and President of the Romanian Film Commission 3. Sterian Alexandru - film image operator, PhD. in cinematography 4. Horea Corneliu Murgu - Prof. univ. assoc. UNATC, sound engineer 5. Stan McCoy - President Motion Picture Association of America

APPENDIX no. 2

Rules of organization and operation of the Romanian Film Commission

Art.1 The Film Commission in Romania, hereinafter referred to as the Film Commission, is a decision-making body without legal personality, with the role of evaluating and selecting cinematographic projects that meet the eligibility conditions for receiving State aid in accordance with the provisions of the Government Decision no. 421/2018 for the establishment of a state aid scheme for the support of the cinematographic industry, as subsequently amended and supplemented. Art.2 This regulation on the organization and functioning of the Film Commission determines the attributions as well as the way of organizing and carrying out its activity. Art. 3 The Film Commission has as its main attributions: a) Evaluation of financing applications submitted under the provisions of the Government Decision no. 421/2018 for the establishment of a state aid scheme for the support of the film industry, as subsequently amended and supplemented, in order of registration with the National Commission for Strategy and Prognosis Registry, in terms of conformity and fulfillment of the eligibility conditions and criteria, according to the orders The President of the National Commission for Strategy and Prognosis, in force at the date when the Romanian Film Commission makes each individual check; b) Requesting additional information, clarifications and/or documents for filling in the Application Form, as the case may be; c) To solve all applications for funding by adopting a Decision on the Issuance of the "Certificate of Applicant" or a Reasoned Rejection Decision, to fit into the annual budgets allocated to the Scheme and to comply with applicable legal deadlines; d) Transmitting the Decision on issuing the "Certificate of Applicant" or the Reasonable Rejection Decision to the President of the National Commission for

Strategy and Prognosis in order to issue the "Certificate of Applicant" and the Financing Agreement or Rejection of the Application and their approval by order; e) Analysis of the Audit Reports carried out in accordance with the applicable legal provisions and registered with the National Commission for Strategy and Prognosis registry; f) Certification of the amount of eligible expenditures related to the Applicant's Certificate and the Financing Agreement according to the applicable legal provisions and based on the Audit Report; g) Requesting the completion/correction of the Audit Report, as appropriate; h) Settlement of all payment requests by adopting a Decision certifying the amount of eligible expenditure and the amount of the corresponding state aid, by fitting into the annual budgets allocated to the scheme and in compliance with applicable legal deadlines; i) Transmitting the Decision certifying the amount of eligible expenditures and the amount of the corresponding State aid to the President of the National Commission for Strategy and Prognosis for the approval of the payment request; j) Submit to the National Commission for Strategy and Prognosis, at its request, the reasoned answer to any contestation of the Decisions issued by it; k) To send a reasoned reply as soon as possible to any request for clarification issued by the National Commission for Strategy and Prognosis in the process of issuing the "Certificate of Applicant" and the Financing Agreement or Reasoned Rejection Decision, as well as the approval of the payment request; l) Permanent communication with representatives of the National Commission for Strategy and Prognosis, which ensures the Secretariat of the Film Commission. Art. 4. (1) Members and the President of the Film Commission shall be bound to keep confidentiality throughout their term of office and after their termination regarding data and/or personal information according to the General Data Protection Regulation (GDPR) - Regulation (UE) 2016/679 or which are subject to legal protection under Law no. 8/1996 on copyright and neighboring rights, as subsequently amended and supplemented, which they became aware during the exercise of their mandate, except for the data and documents which, according to the law, constitute information of public interest. (2) The members and the President of the Film Commission shall be obliged to exercise their mandate in compliance with the following principles: a) the proper observance and enforcement of the law;

b) priority of the public interest;

c) ensuring equal treatment;

d) professionalism, by fulfilling the mandate with responsibility, competence,

efficiency, fairness and conscientiousness;

e) impartiality and independence, which implies an objective, neutral attitude to

any political, economic, religious or other interest in the exercise of the mandate;

f) moral integrity.

(3) In order to avoid conflicts of interest, members and the President of the Film Commission, as well as their family members or relatives up to the second degree, may not participate in the performance of a cinematographic project recorded in the respective competition session . (4) For the purpose of knowing and assuming the commitments provided in paragraph (1) - (3), the members and the President of the Film Commission, shall sign, within no more than 10 calendar days from the appointment, but no later than the first meeting, the confidentiality declaration and the avoidance of the conflict of interests, according to the model set out in the Appendix no. 1 to this Regulation. Art.5 (1) Membership or Chairmanship of the Film Commission shall cease in the following situations: a) termination of the mandate;

b) violation of the legal provisions and this regulation;

c) finding non-compliance with the commitments contained in the confidentiality

statement and avoiding conflicts of interest;

d) absences at 3 consecutive meetings or 5 absences per year;

e) by renouncing on his/her own initiative in the mandate, communicated in writing

to the President of the Film Commission or respectively, in the case of the President,

communicated in writing to the president of the National Strategy and Forecasting

Commission;

f) in case of non-fulfillment of the obligation stipulated in art. 4, par. (2);

g) when, following a final and irrevocable court decision, he/she is convicted of one

of the facts prescribed and sanctioned in connection with the exercise of the

profession.

(2) Establishment of the situations stipulated in paragraph (1) is the responsibility of the President of the Film Commission and 1/2 of the members of the Film Commission, so the situations thus established will be announced to the President of the National Commission for Strategy and Prognosis. (3) If one of the members of the Film Commission or its President loses this capacity, another candidate shall be selected for the remainder of the mandate. Art. 6. (1) In the exercise of its duties, the Film Commission shall:

a) Evaluates from the point of view of compliance the applications for financing submitted under the provisions of the Government Decision no. 421/2018 for the establishment of a State aid scheme for the support of the film industry, as subsequently amended and supplemented, the evaluation is carried out by the Film Commission on the basis of the Checklist set out in Appendix no. 2 to this Regulation;

b) Evaluates from the point of view of eligibility the applications for financing filed under the provisions of the Government Decision no. 421/2018 for the establishment of a State aid scheme for the support of the film industry, as subsequently amended and supplemented, the evaluation is carried out by the Film Commission on the basis of the Checklist set out in Appendix no. 3 to this Regulation;

c) Evaluates the payment requests filed under the provisions of the Government Decision no. 421/2018 for the establishment of a state aid scheme for the support of the film industry, as subsequently amended and supplemented, based on the Checklist set out in Appendix no. 4 to this Regulation;

Art. 7. In the process of evaluation and deliberation for solving the documentation of requests for agreement or payment submitted under the provisions of the Government Decision no. 421/2018 for the establishment of a state aid scheme for the support of the film industry, as subsequently amended and supplemented, members of the Film Commission may request written views from other experts in the field. Art. 8. (1) The activity of the Film Commission shall be held in working sessions convened at least 5 days before the date proposed for the deployment and have a pre-established agenda and communicated to all members. (2) Work sessions may also be held through the means of distance communication, respectively the Internet, the opinions expressed by e-mail being included in the minutes of the sitting held in this way. (3) In the case of meetings held by means of distance communication, the date of the convocation and the deadline for replying, respectively, when the meeting is considered to be concluded, and the presence will be represented by the emails received in the respective time interval. (4) The participation in the works of the Film Commission cannot be delegated. (5) The Film Commission may take place in the presence of at least three members, including its president. (6) The minutes of the discussions and the conclusions on each item on the communiqué shall be recorded in the minutes. (7) The conclusion of the deliberation, formulated by the chairman of the Film Commission for each item on the agenda, approved by the vote of the members of the Commission (with the votes for, against, abstentions), shall be mentioned in the minutes of the meeting. (8) If a favorable vote of at least half plus one of the quorum is not met, the Film Commission shall issue a reasoned rejection decision. Art. 9. The minutes and the decisions of the Film Commission are published on the website of the National Commission for Strategy and Prognosis in a special section dedicated to the state aid scheme. Art. 10. The technical secretariat of the Commission is provided by the National Commission for Strategy and Prognosis. The Secretariat mainly conducts the following activities:

a) ensures the conditions for the Commission meetings in terms of both location and computer facilities;

b) draws up the minutes;

c) record the decisions and submit them to the National Commission for Strategy and Prognosis through its registration. Art. 11 (1) The Rules and Regulations of the Film Commission may be amended whenever the legal provisions or the necessities impose it with the vote of the majority of the members. (2) Proposals for amending the Regulation shall be communicated to the National Commission for Strategy and Prognosis in order to issue a new order.

Appendix no. 1 to the Regulation

STATEMENT confidentiality and impartiality

Undersigned) . . . . . . . . . . . . . . . . ., member / chairman of the Romanian Film Commission constituted in compliance with the provisions of H.G. no. 421/2018 for the establishment of a state aid scheme for the support of the film industry, with the subsequent modifications and completions, declare under my own responsibility, under the sanction of the false declaration, provided by art. 326 of the Penal Code, the following: a) I do not hold shares, shares of interest, shares in the subscribed capital of a legal entity that can access the state aid scheme established by H.G. no. 421/2018, as amended and supplemented; b) I am not part of the board of directors/management or supervisory body of a legal entity that can access the state aid scheme established by H.G. no. 421/2018, as amended and supplemented; c) I am not a spouse, a relative or a son, up to the second degree, including persons who are members of the board of directors/management or supervisory body of a legal entity that can access the state aid scheme established by H.G. no. 421/2018, as amended and supplemented; d) I have no interest that should endanger my impartiality during the deliberations of the Film Commission; e) during the term of office, I shall not engage in any type of activity that contravenes the duties performed within the Film Commission; f) I undertake to keep the confidentiality of personal information and data in accordance with the General Data Protection Regulation (GDPR) - Regulation (EU) 2016/679 and those falling under the protection provided by Law no. 8/1996 on copyright and neighboring rights, as amended and supplemented, which I will obtain/learn as an effect of my membership of the Film Commission. I confirm that

if I discover during my mandate that I am in one of the situations outlined or out of the above commitments, I will immediately declare this and withdraw from the position held within the Film Commission.

Date Signature

Appendix no. 2 to the Regulation

Checklist

on the fulfilment of the compliance criteria of the financing application and the supporting documents submitted in accordance with the provisions of G.D. no.

421/2018

Crt.no.

Document Compliance conditions The existence of the

document

YES/NO

Observations

1. Application form - It contains all the fields filled in with the required data, it is in accordance with the form in Appendix no. 1 to the procedure in the Order no. 196/2019 and is dated and signed in the original by the person authorized to legally represent the company; - It contains information related to the information in the certificate of good standing, the financial statements, the film production plan, the identity document of

the authorized person or the power of attorney, if applicable, as the case may be, as well as all other documents that must be accompanied by the application form.

2. Certificate of registration in the Cinematography Registry

In copy.

3. Certificate of good standing issued by the Trade Registry

It is attached in original, it is updated with data valid on the date of registration of the Application form and contains all the necessary information stipulated by GD 421/2018 and the subsequent administrative documents issued in its application.

4. Tax registration certificate

It is valid and presents the note: without debt.

5. Financial statements related to the last financial year ended (as the case may be)

They are submitted and approved in accordance with the legal provisions, they are attached in copy.

Verification is made for company in difficulty. For applications submitted between 1 January and 30 June, the financial statements for the whole of the previous year are filed. For applications submitted between 1 July and 31 December, the financial statements for the first semester of the current year shall be submitted.

6. Identification document of the person authorized to legally represent the applicant

In copy.

Technical file (separate sheet with the title of the file. Numbered)

7. Presentation of the project subject.

8. Production plan of the film.

9. Scoring simulation - The eligibility test on the model in the Appendix to the Order

of the President of the National Commission for Strategy and Prognosis no. 195/2019 on the establishment of criteria for the classification as a "cultural product" of projects eligible for State aid.

10. Script breakdowns that will highlight the fulfilment of the eligibility criteria and compliance with the eligibility criteria set out in the Appendix to the Order no. 195/2019.

11. Legal document that proves the possession of intellectual property rights on the project.

It is presented in notarized copy.

12. Full script in

Romanian. For TV series and TV mini- series, the scripts will be submitted in Romanian for each episode for which funding is requested.

Curriculum Vitae

13. List of the authors of the film

14. CV of producer/co-producers

15. CV of director

16. CV of screenwriter

17. Golden para (brief presentation) of the project team members based on which the criteria of the eligibility test provided in Appendix to the Order no. 195/2019 is carried out.

18. Presentation of the locations/studios in Romania in which the

shootings and endowments based on which the criteria of the eligibility test provided in Appendix to the Order no. 195/2019 is carried out.

19. Presentation of studios/laboratories in Romania in which different stages of the finalization of the production is achieved, based on which the criteria of the eligibility test provided in Appendix to the Order no. 195/2019 is carried out.

Budget(separate sheet with the title of the file. Numbered)

20. Centralizer of project's total budget

On the format from the order or custom format

21. Centralizer of Romanian project budget

On the format from the order or custom format

22. Evidence of the own financial contribution/

In original.

co-financiers to project financing for producers/co-producers, and in the case of service providers proof of their own contribution of the foreign producer.

23. Other supporting documents

Surname/Name: ..............

Function: ..............

Signature: ..............

Date of signature: ..............

Appendix no. 3 to the Regulation

Checklist on the fulfilment of the eligibility criteria of the financing application and the related supporting documents submitted in accordance with the provisions of

G.D. no. 421/2018

Crt. no.

Eligibility criteria Fulfilment of criterion YES/NO

Comments

1 The main activity of the company is cinematographic production and, in the case of Romanian companies, they are registered in the Cinematographic Register.

2 The company holds the quality of a producer, co-producer and/or production service provider and produces long feature fictions films, animation or documentary films or television series, partially or wholly on the territory of Romania.

3 As a producer/co-producer, the company owns the intellectual property rights to the work to be produced or, if it provides services for a foreign production company, it acquired the rights to produce.

4 In the case of foreign producers, a co-production or service agreement must be signed with a Romanian producer.

5 The company presents

information related to the total budget of the production for which this State aid is requested, in the case of productions wholly carried out on the territory of Romania and, in the case of those that are partially carried out on the territory of Romania, information related to the budget corresponding to the expenses incurred on the territory of Romania, for which state aid is requested.

6 The company proves that it has no debts to the consolidated Romanian general budget.

7 In the case of co-productions, the co-producers delegated a single company, which will represent the production and will have the quality of applicant for this aid scheme.

8 The project falls under the category of "cultural product".

9 The amount of total eligible expenditure in connection with the implementation of the project is at least EUR 100,000.

Surname/Name: .............. Function: .............. Signature: .............. Date of signature: ..............

Appendix no. 4 to the Regulation

Checklist of supporting documents

No crt.

Document Conditions of compliance

The existence of the document

YES / NO

Comments

1 Payment request

It contains company identification data, project name, amount of eligible expenditure incurred, amount of state aid requested, information related to the information in the budget centralizers, production plan.

2 Audit report

Originally signed by the legal representative of the reporting organization. Developed according to the International Standard on Related Services (ISRS) 4400.

3 Justifiyng documents: - contracts; - invoices; -Payment orders; -Account statements; -Bookkeeping notes;

In copy, signed by the legal representative of the enterprise, it is marked "according to the original", translated into Romanian by an authorized translator, as the case may be.

No crt.

Document Conditions of compliance

The existence of the document

YES / NO

Comments

- Accounts; - Trial balance; - Payroll

4 -Explanatory notes; - Statements.

Name / Surname: ..............

Function: ..............

Signature: ..............

Signing date: ..............