Allegato7

COUNCILFORTOURISMANDCULTURE-MANAGEMENTANDVALORIZATIONOFCULTURALHERITAGES

DEPARTMENTOFTOURISM,ECONOMYOFCULTUREANDVALORIZATIONOFTERRITORY

CULTURALECONOMYSECTOR

PRIORITYAXESIIICOMPETITIVENESSOFSMALLANDMEDIUMENTERPRISES

ACTION3.4

Supportactionsforculture,tourism,creativeandentertainmentindustryenterprises

APULIAFILMFUND2018/2020

PROCEDURALGUIDELINEREGULATINGTHERELATIONSHIPBETWEENTHEREGIONEPUGLIAAND

______________________________

FORTHEREALIZATIONOFTHEAUDIOVISUALPROJECT

“________________________”

CUP(SingleProjectCode)__________________

ART.1(Generalities)

1. The relationship between the Regione Puglia (from hereon referred to as “Regione”) and_________________ (fromhereon referred toas “Beneficiary”) is regulatedby thisProceduralGuidelinepursuanttowhat isoutlined inthefollowingarticles,aswellastheApuliaFilmFund2018/2020PublicNotice(fromhereonreferredtoas“Notice”).

2. The Beneficiary is responsible for the realization of the audiovisual project called“__________________” directed by ___________________ financed with Euro__________________asperExecutiveResolutionNo.___of_________.

3. The amount of the funding approved at the time of granting the subsidy is determined withreferencetotherelativeexpensesconsideredtobereimbursableduringtheassessmentoftheprojectand:

a. ConstitutesthemaximumamountthatcanbegrantedtotheBeneficiaryb. Any increases do not in any case lead to an increase in the amount of the subsidy

grantedc. May be reduced following an analysis of the expense report and verification of

reimbursableexpenses,asregulatedinthefollowingarticles.

ART.2(FirstobligationsoftheBeneficiary)

1. TheBeneficiarymust send the ProceduralGuideline digitally signed by its legal representativewithin10daysofthedateofitsreceipttotheCEMaddressapuliafilmfund@pec.rupar.puglia.it.

2. The Beneficiary must, during the provisional allotment of the subsidy pursuant to art. 8paragraph 12 of the Notice, activate a user profile on the MIRWEB electronic informationmonitoring system (via the URL: mirweb.regione.puglia.it) and constantly update its financial,physicalandproceduraldata.

3. Intheeventthat,attheexpirationofthetermreferredtoinparagraph1above,theBeneficiaryfails to fulfill the relevant obligation, theRegion shall forfeit theBeneficiary from the subsidy,unless the Beneficiary communicates a justifiable delay by the same deadline referred to inparagraph1.

ART.3(ObligationsoftheBeneficiary)

TheBeneficiarymust: 1. Send the Procedural Guideline signed by the legal representative of the Beneficiarywithin 10

daysofitsreceipt2. Respecttheprohibitionofdoublefinancingofactivities,ortheprohibitionofcumulationofthe

intensityofaidforapercentageabovethelimitsetintherulesreferredtointheNotice3. Complywith theproceduresanddeadlines for the reportingofexpensesand the timetable as

definedinart.5"Reportingmethods"andart.13"DurationoftheProceduralGuideline"4. ComplywithEuropean,nationalandregionallegislationregardingtheeligibilityofexpenses5. Register and update the data referring to the financedproject in the regional and/or national

informative system indicated and comply with the monitoring procedures foreseen for theproject

6. Accepttheinclusionoftheallocatedfundinginthelistofoperationspublishedpursuanttoart.115par.2ofEURegulationNo.1303/20137. Applytopersonnelor,inthecaseofcooperatives,workermembers,whateverthelegalstatusof

the employment relationship, national collective contracts and territorial agreements of thesector they belong to, stipulated by trade unions and associations of employers that arecomparativelymorerepresentativeatthenationallevel

8. Be in compliance with social security and insurance obligations throughout the period of therelationshipwiththeRegione,i.e.fromthedateofsubmissionoftheapplicationtothedateofdisbursementandpaymentofthesubsidy

9. Respect Law No. 136 of 13 August 2010 "Extraordinary plan against the mafia, as well asdelegationtotheGovernmentonAnti-MafiaLegislation"(G.U.No.196of23August2010)

10. Givewrittennotice to theProcedureManagerwithin10daysof theoccurrenceof oneof thefollowinghypotheses:

a. Liquidationofthecompany,transferofthebusinessactivityb. Declaration of bankruptcy, compulsory liquidation, compositionwith creditors, or the

startoftheprocedureforthedeclarationofoneoftheaforementionedsituationsc. Sentenceofafinaljudgmentorissueofapenaldecreethathasbecomeirrevocableor

thepronunciationofjudgementapplyingthepenaltyuponrequestpursuanttoart.444of the Criminal Procedure Code, for serious crimes against the State or the EuropeanCommunitythataffectprofessionalmoralityandinparticular,pursuanttoart.45ofECDirective No. 18/2004, for participation in a criminal organization, for corruption, forfinancialfraudagainsttheEuropeanCommunity,forlaunderingofproceedsfromillegalactivities

11. Adopt a separate accounting system or adequate accounting code in the management of alltransactionsrelatedtothefinancedaudiovisualproject (e.g.accountingcodeassociatedtotheproject)

12. Make themselves available for 5 years after the date of completion of the investment, to anyrequest forchecks, information,data,documents, statementsordeclarations, tobeeventuallyissuedevenbysuppliers

13. Keepandmakeavailablethedocumentationrelatedtotheprojectfinancedfor5yearsafterthedateofcompletionoftheinvestment

14. Respecttheproceduresandtermsofreporting15. Respect the start and end dates of filming, as indicated during the submission of the subsidy

application,exceptforsendingtimelycommunicationstotheRegione16. Communicate via e-mail to ufficioproduzioni@apuliafilmcommission.it, and during filming, any

updatesregarding:a. Thecompleteprojectplan,clearlyhighlightingworkingdaysinApuliab. Thecompletelistofthecastandcrew,clearlyhighlightingthepersonnelregisteredwith

theProductionGuide(excludingextrasandtrainees)c. Thecompletelistofsuppliers,clearlyhighlightingthosewithtaxresidenceinApuliad. Thecompletelistoflocations,clearlyhighlightingApulianlocations

17. Communicate the production agenda daily to the e-mail address:ufficioproduzioni@apuliafilmcommission.it

18. Send scene photos weekly during shooting to the e-mail address:ufficioproduzioni@apuliafilmcommission.it

19. Organise, in Apulia, a special press conference with the participation of national andinternational newspapers with the presence of the director and / or the main actors andrepresentatives of theRegione Puglia and theApulia FilmCommission Foundation, before thestart or during filming, with the exception of a project pertaining to the DOC and SHORTcategories

20. Allow,atanytime,thepresenceofadelegateoftheApuliaFilmCommissionFoundationduringshooting

21. Allow, for documentation purposes only, photos or filming by a delegate of the Apulia FilmCommissionFoundationduringshooting

22. Communicate via e-mail to ufficioproduzioni@apuliafilmcommission.it, before the end ofshooting,ifavailable:

a. Thepost-productionplanb. The complete list of the post-production crew, clearly highlighting the personnel

registeredwiththeProductionGuide(excludingextrasandtrainees)c. The complete cast list (e.g. dubbing actors), clearly highlighting personnel registered

withtheProductionGuide23. Affix the logos requested in theopening credits or, alternatively, as the first credit of theend

credits and on all the informative, advertising and promotional documents of the project,pursuanttoAnnexXIIofEURegulationNo.1303/2013andart.4ofEURegulationNo.821/2014,thewords “con il contributo di [LOGO Regione Puglia] [LOGO Unione Europea] [LOGO PORPuglia FESR-FSE 2014/2020] [LOGO Fondazione Apulia Film Commission]” ("with thecontributionof[RegionePugliaLOGO][EuropeanUnionLOGO][RopPugliaERDF-ESF2014/2020]

[Apulia FilmCommission Foundation LOGO]", by sending to theRegionePuglia and theApuliaFilm Foundation Commission the previewof the opening credits of the film in ".jpg" or ".pdf"formatbeforeproceedingwiththefinalizationorduplicationofthefinalwork,underpenaltyofrevocationofthesubsidy

24. Grant the Regione and the Apulia Film Commission Foundation the right to free use on anychannelexcerptsrelatingtothefilmproject (alsomountedwithotherextracts fromother filmworks), sceneandbehind the scenesphotos,exclusively for institutionalaimsand institutionalpromotionoftheRegione,theApuliaFilmCommissionFoundationanditsMembers

25. Allowthepublicationofthematerialreferredtointhepreviouspoint,pursuanttoart.70ofLawNo.633/1941,onthepugliadigitallibrary.itsitewithCCBY-SAlicense

26. Deliver to the Region, the Mediateca Regionale Pugliese and the Apulia Film CommissionFoundation,atnoadditionalcharge,3Blu-rayDisccopiesoftheprojectandbehindthescenes(and/orpromotionalspecials)by______________

27. Provide at least one public screening of the project in the area of Apulia wheremost of theshooting took place, with the presence of the mayor of the municipality (or its delegate), arepresentativeoftheRegioneandtheApuliaFilmFoundationCommission

28. ProvideforthepresenceofarepresentativeoftheRegioneandtheApuliaFilmCommissionatthenationalorinternationalpremiere

29. If the project participates at national or international festivals, provide for the presence of arepresentative of the Regione and of the Apulia Film Commission Foundation at the pressconferencetopresentthefilmatthefestivaltowhichitisregistered

30. InthecaseofaprojectbelongingtotheFORMATcategory,provideanindicationofthelocationchosen for the filming of the on-screen text or the spoken word of the presenter in the TVprogram

31. Inthecaseoftherenouncementofthesubsidy,theBeneficiaryisobligedtosendthedisclaimerviaCEM,digitallysignedbythelegalrepresentativeonheadedpaperofthebeneficiarycompany.

ART.4

(Eligibleexpensesandreimbursableexpenses)1. Expenses relating to the total production budget of the subsidized audiovisual work, actually

incurredandpaidbytherecipientcompany,areeligible.2. Costs incurred in a manner other than that established by European, national and regional

legislationregardingtheeligibilityofexpensesarenoteligible.3. Only the production costs of the audiovisual project for the development, pre-production,

executionandpost-productionphasesoftheaudiovisualworkarereimbursable.Pre-productioncostsareintegratedintothetotalbudgetandtakenintoaccountwhencalculatingaidintensity.

4. Forthepurposesofcalculatingtheaidpayable,equaltothepartialreimbursementofthecostsreferredtoinArticle4paragraph4,thefollowingareconsideredreimbursable:

a. 75% of the net amount of the payroll of fixed-term or permanent personnel withresidence in Apulia and the net invoice amount (excluding VAT) of self-employedpersonsholdingaVATnumberwithresidenceinApulia,registeredwiththeProductionGuide database of the Apulia Film Commission Foundation (accessible from the URLpg.apuliafilmcommission.it)foralltypesofprojectsrelatingtoeachcategory

b. 30%ofthetaxableamountindicatedintheinvoicesofcompaniessupplyinggoodsandservices, having tax residence in Apulia, in the case of a project pertaining to theFICTIONcategory

c. 50%ofthetaxableamountindicatedintheinvoicesofcompaniessupplyinggoodsandservices,havingtaxresidence inApulia, in thecaseofaprojectpertainingtotheDOCcategory

d. 70%d of the taxable amount indicated in the invoices of companies supplying goodsand services,having tax residence inApulia, in the caseof aprojectpertaining to theSHORTcategory

e. 50%ofthetaxableamountindicatedintheinvoicesofcompaniessupplyinggoodsandservices, having tax residence in Apulia, in the case of a project pertaining to theANIMATIONcategory

f. 30%ofthetaxableamountindicatedintheinvoicesofcompaniessupplyinggoodsandservices, having tax residence in Apulia, in the case of a project pertaining to theFORMATcategory

5. Theseamountsarenetofanytaxes,social,socialsecurityandwelfaretaxespaidbythecompanyandthetaxableinvoicesofsupplierswithtaxresidenceinApulia.

6. The obligation to register with the Production Guide database of the Apulia Film CommissionFoundation iswaived forminors (at the date of employment), extras and trainees,whose netpaychequesareconsideredreimbursableaslongastheyresideinApulia.

7. Reimbursableexpensesmustberelatedtotheitemsofexpenseslistedandanylimitsestablished

inAnnex1b.

8. Reimbursableexpensesmustactuallybe incurredandpaid starting from theday following thedateofsubmissionoftheapplicationforaid.

9. Reimbursableexpensesrelatedtoabovethelinecostsarereportableaccordingtothefollowingmaximumamounts:

a. EUR100,000.00inthecaseofprojectspertainingtotheFICTIONcategoryb. EUR40,000.00inthecaseofprojectspertainingtotheDOCcategoryc. EUR10,000.00inthecaseofprojectspertainingtotheSHORTcategoryd. EUR40,000.00inthecaseofprojectspertainingtotheANIMATIONcategorye. EUR50,000.00inthecaseofprojectspertainingtotheFORMATcategory

10. SpecialisedconsultancyservicesmustbecarriedoutbypersonsholdingaVATnumber.11. Purchasesofgoodsorservicesfromsuppliers/companies,(includingsingle-ownerbusinesses),

arenotreimbursableif:a. Thesuppliers/companieshaveamongtheirpartners,ownersoradministrators:

- Theadministrator,ownerorapartneroftheBeneficiary- Aspouse,relativeorsimilar(director indirectrelation)withinthethirddegreeof

kinshipoftheowner/legalrepresentativeoftheBeneficiaryb. The suppliers/companies find themselves, with regard to the Beneficiary, under the

conditionsofCivilCodeArt.2359,i.e.theyarebothparticipants,ofatleast25%,oftheshareholdings of the same entity or have the majority of the administrative bodycomposedofthesamemembers

c. Thesuppliers/companiesareconnectedtotheBeneficiary,asdefinedinAnnexIoftheGeneralBlockExemptionRegulations.

12. Thefollowingarenotreimbursable:a. Expensesrelatedtothepurchaseofmachineryandequipmentb. Expensespaidincashc. ExpensesincurredfrombankaccountsnotlistedinAnnex2ad. ExpensesrelatedtoVATe. Expensesrelatedtogoodsandservicesnotdirectly functionaltotheproject forwhich

socialsecuritytaxesarerequestedf. Expensesrelatedtoshort-term/temporaryworkg. Expenses related to compensation for workers hired by national collective labour

agreementsotherthanthoseprovidedforintheaudio-visualindustrysectorh. Expensesincurredasin-kindcontributionsi. Expenses incurred in favour of companies connected to the beneficiary company, as

definedinAnnexIoftheGeneralBlockExemptionRegulationj. Expensesincurredbeforethedateofsubmissionoftheapplicationforaidk. Expenses related to the provision and supply of goods and services by third parties

financing the audiovisual work or, in general, third parties who find themselves insituationsofco-interestwiththecompanybenefitingfromthesubsidy

l. ExpensesrelatedtoactivitiesinthesectorsexcludedfromtheapplicationoftheGeneralExemptionRegulation

m. Passiveinterest,companycompensation(producer'sfee)andgeneralexpensesn. Expensesrelatedtomotorwaytollsorthepurchaseoftraveltickets

o. Theexpensesrelatedtothehireofsubcontractorsofgoods,thatis,nottheownersofthegoodsobjectoftherental

p. ExpensesinferiortoEUR100.00,excludingVAT13. Thelimit in letterp)oftheprecedingparagraphshallbewaivedforexpensesrelatedtopayroll

whose net is lower than EUR 100.00, as in the minimum wage of the national collectivebargainingagreement.

14. In the case of presentation of co-production or executive production contracts, the expensesactually incurred by the co-producers of the audiovisual work or by the executive productioncompanyarereimbursable,subjecttocompliancewiththeobligationsoftraceabilitypursuanttoart.13,paragraph2letterf)ofthisNotice.

15. The expenses incurred by the co-producers of the audiovisual project or by the executiveproductioncompanyreferredtointhepreviousparagraphshallbereportedwithinthelimitsoftheamountsindicatedintherelatedcontractbelow.

16. Executiveproductioncontractsmustbestipulatedafterthedateofsubmissionoftheapplicationfor subsidization or, if stipulated previously, must contain a condition precedent, whichsubordinates the irreversibility of the investment of the concession of aid by the Regione,pursuanttoArt.2paragraph23oftheGeneralBlockExemptionRegulation.

17. Theamountof thegrantapprovedat the timeof theconcessionof the subsidy isdeterminedwith reference to theexpenses that aredeemed tobe reimbursable; any increase in variationdoesnotinanycasedetermineanincreaseintheamountoftheaidgranted.

18. The amount of the aid granted is recalculated when the balance is disbursed, following theverificationofthereimbursableexpensesactuallyincurred,reportedandrecognised.

19. The eligibility of the expenses is in any case subject to compliance with applicable regional,nationalandEUlegislation.

ART.5

(Methodofreportingexpenses)1. For the recognition of expenses, the Beneficiarymust send the following documents via user

profileontheMIRWEBelectronicinformationtrackingsystem(mirweb.regione.puglia.it):a. CertificateissuedbythelegalrepresentativeoftheBeneficiary,accordingtoAnnex12,

resultingthat:- All regional and national legal requirements have been fulfilled, in particular

thoseconcerningfiscalmatters- All applicable EU community regulations and rules have been compliedwith,

including,butnotlimitedto,thoseconcerningthetraceabilityoffinancialflows,information and publicity, those relating to work contracts and workplacesafety, environmental impact, equal opportunities and inclusion of disabledsocialcategories

- The expenses incurred are eligible, relevant and congruous, and have beencarriedoutwithintheeligibilitytermssetbythisNotice

- No reductions and / orVATdeductionshavebeenobtainedon theexpensesincurred(oriftheywereobtained,forwhatexpensesandtowhatextent)

- No further reimbursements, contributions and additionsweremade to othersubjects,publicorprivate,national,regional,provincialand/orEUcommunity(oriftheywereobtainedorrequested,whichandtowhatextent)

b. Self-certificationupdatedaccordingtoAnnex2c. Finalprojectplan,clearlyhighlightingoftheworkingdaysinApuliad. Definitive list of cast and crew, clearly highlighting personnel registered with the

ProductionGuide(excludingextrasandtrainees)e. ListofsupplierswithtaxresidenceinApuliaf. Completelistoflocations,clearlyhighlightingApulianlocationsg. Definitive screenplay, clearly highlighting the pages purposely set in Apulia, only for

projectspertainingtotheFICTIONandSHORTcategories(withtheexceptionofmusicalshortfilms)

h. Analytical reportof the reimbursableexpensesdrawnupaccording toAnnex9, tobesentalsobyCEMin".xls"format,digitallysignedbythelegalrepresentative

i. Asseveration by an accountant, or statutory auditor or auditing firm registered in theregister pursuant to Legislative Decree No. 39/2010 and subsequent amendments,drawnuponthemodelsetoutinAnnex10thatcertifies:

- AnalyticalreportofthereimbursableexpensesdrawnupaccordingtoAnnex9- Productioncost,whichdetailsthetotalcosts,grossofanytaxorothercharges,

in an analytical framework according to themodel provided byDG Cinema -MiBACT(whereavailable)

j. Copiesoftheoriginalsof:- InvoicesfromsupplierswithtaxresidenceinApulia,withtherelativepayment

slip(copyofthebanktransfer,proofofchargestodebitaccount,etc.)- Payroll of the workers registered with the Production Guide or invoices of

professionalsregisteredwiththeProductionGuide,legallycontracted,withtherelative payment slip (copy of the bank transfer, proof of charges to debitaccount,etc.)

- Anyother supporting documentation for expenseswith the relative paymentslip(copyofthebanktransfer,proofofchargestodebitaccount,etc.)

- Where provided for, legally binding acts (contracts, conventions, letters ofappointment, etc.), clearly showing the object of the service or supply, itsamount,thetermsofdelivery,themethodsofpayment

2. Forexpensestoberecognised,theymust:a. Beincurredandpaidfromthefirstdayfollowingthedateonwhichtheapplicationfor

thesubsidyissubmittedb. Beexpresslyandstrictlyrelatedtotheprojecteligible forthesubsidypursuanttothis

Noticec. Have been incurred and justified by invoices or accounting documents of equivalent

probativevalued. Beincompliancewithcivilandtaxlegislatione. Be registered and clearly identifiable with a separate accounting system or with an

adequate accounting code (containing transaction date, nature and details of thesupportingdocuments,paymentmethods)whichmakesitpossibletodistinguishthemfromotheraccountingoperations,subjecttonationalaccountingregulations

f. Be paid in a manner compliant with the law that establishes the obligations oftraceabilityof financial flows (Article3of LawNo. 136/2010, as amendedby LawNo.217/2010),with payment instruments thatmust report the Single Project Code (CUP)providedbytheRegione;reportedexpenses incurredwithanyother formofpaymentotherthanthoseindicatedwillnotbeconsideredeligible

g. Allexpensesreportedmustbearanindeliblestampontheoriginalwiththefollowingwords:

“SpesasostenutagraziealcontributodelPORPugliaFESR-FSE2014/2020-Azione3.4.AvvisoPubblicoAPULIAFILMFUND2018-2020”

("ExpensesupportedthankstothecontributionoftheROPPugliaERDF-ESF2014/2020-Action3.4.PublicNoticeAPULIAFILMFUND2018/2020”),

[nameoftheaudiovisualproject,asstatedinart.1]reportedinEuro_______CUP__________________________

3. Thedocumentationofcompletedexpendituresshallberepresentedby:abanktransferreceipt

orotherbankdocumentwhoseunderlyingfinancialmovementisdocumented,theCUPandthedata of the fiscally valid expense document to which the payment refers. Payments made incontraventiontotheprovisionsofLawno.136/2010anditssubsequentamendmentswillnotbeconsidered valid, and therefore will not be considered useful for the purposes of reportingexpenses.

4. The documentation of the completed expenditures must refer outright to the subsidy paid;paymentsmadeon the basis of proforma invoices or expense itemsnot considered valid as aresultofverificationswillnotbeconsideredvalid.

5. ExpensesnotconsideredreimbursableremainsolelytheresponsibilityoftheBeneficiary.

6. In each procedural phase, checks and inspectionsmay bemade by persons appointed by theRegione,andthecompetentEUInstitutionsfortheimplementationofprojectsgrantedfunding.

7. The data related to the implementation of the project, as reported in the Registration andMonitoringInformationSystem,willbemadeavailabletotheInstitutionalBodiesresponsibleformonitoringandcontrol.

8. Documentsrelatingtotherealizationoftheprojectmust,inanycase,bemadeavailablefortheentire duration of the project and for the 5 years following the date of completion of theinvestment, and will be checked, during any inspection for the technical and administrativeverificationoftheproject,bytheRegioneand/ortherelevantEUinstitutions;originalsofthesedocuments, even those related to the total production cost, must be made available at therequestofthesebodies.

9. In the case of incomplete documentation, the Regione will request the necessary additions,whichmustbeprovidedbytheBeneficiarywithin30calendardaysfollowingtherequest.

10. TheRegione, following the verificationof theadditions referred to inparagraph9above,mayproceedwiththerequesttosendtheapplicationforpayment(Annex8b),orwiththerevocationofthesubsidyifoneormorecasesareverifiedinthefollowingart.9.

11. The procedure for defining the total reimbursable expensewill occurwithin 90 calendar daysfrom the date of submission of the payment request (Annex 8b), subject to suspensions orinterruptionsarrangedbytheofficesoftheRegioneforclarificationsand/oradditions.

ART.6(Reductioninfunding)

1. Following the analysis of the expense report and the verification of eligible costs andreimbursable expenses, the Regione will reduce the financing of the project subsidized if thereimbursable costs indicated in the estimate in Annex 3 of the Notice are lower than theexpensesreportedandrecognizedasreimbursablebytheRegione.

2. Theamountofthesubsidygrantedisre-determinedatthetimeofthelastbalancepayment,onthebasisoftheeligibleexpensesactuallyincurred,reportedandrecognizedasreimbursablebytheRegione.

3. In the case of the violation of the aid intensity limits established in art. 6 of the Notice, theconcessiongrantedwillbereduceduntilthemaximumallowedlimitisreached.

4. Thequantificationof theamountof thedefinitivesubsidywillbedeterminedaccording to thefollowingpercentages,takingintoaccountanyanticipateddisbursement:

a. 75% of the net amount of the payroll of fixed-term or permanent employees withresidenceinApuliaandthenetamountoftheinvoice(excludingVAT)ofself-employedpersonsholdingaVATnumberwithresidenceinApulia,registeredwiththeProductionGuide database from the Apulia Film Commission Foundation (accessible at the URL:pl.apuliafilmcommission.it)foralltypesofprojectspertainingtoeachcategory;

b. __%ofthetaxableamountindicatedintheinvoicesofthecompaniessupplyinggoodsandservices,havingtaxresidenceinApulia,inaccordancewiththeprovisionsofart.4oftheNotice.

ART.7(Subsidydisbursement)

1. ThesubsidygrantedwillbepaidtotheBeneficiarybytheRegione:a. Inalumpsumattheendofpost-production,followingthesubmissionofaspecificfinal

report,asperart.13oftheNotice,bypresentingAnnex8bb. Intwoinstalmentsincluding:

I. Disbursementofanadvanceequal to40%of the subsidygranted following thepresentation of Annex 8a, with the simultaneous presentation of a bankguarantee or insurance policy or policy issued by a financial intermediary onbehalf of the Regione Puglia - Economy of Culture Section, according to theapprovedframeworkbyDGRNo.1000ofJuly7,2016bytheRegion(Annex11),foranamountequaltotheamountoftheadvancerequested

II. Disbursement of the remaining portion of the subsidy granted through thepresentationofAnnex8b,asthebalanceofthesubsidyitself,attheendofpost-

productionandfollowingthesubmissionofaspecificfinalreportasperart.13oftheNotice

2. The disbursements will be suspended if there are unpaid invoices concerning the services ofsuppliersand/oremolumentsofcastandcrewmembers.

ART.8

(Modificationsandvariations)1. The project eligible for subsidy cannot be modified while in progress, in its activities and

expectedresults.2. For the purposes of maintaining the funding, all changes concerning the Beneficiary, the

production partner referred to in the coproduction contracts and / or the related projectadmitted to the subsidy,must be communicated in a timelymanner to the Regione for priorauthorization,underpenaltyoftheirnotbeingacknowledged.

3. Theprojecteligible forsubsidycanbemodifiedforproductionpurposesonly,accordingtothemethodsandwithinthelimitsindicatedbelow.

4. Variationsconcerningtheproductionaspectsoftheprojectthathaveeffectsbeyondthe limitsreferred to in art. 7 paragraph2 of Regional RegulationNo. 6 of 26 February 2015, entail theforfeitureofthesubsidywhen,duringtheaudit:

[For projects pertaining to the FICTION, DOC and SHORT categories], downwarddeviations of no more than 30% are allowed with respect to what is stated in theApplicationForm,evenforonlyoneofthefollowing:- Ratioofexpensesincurredintheregiontothecostofthefinalcopyoftheproject- RatioofworkingdaysinApuliatototalworkingdays- Ratio ofworkers registeredwith the Production Guide to totalworkers (excluding

extrasandtrainees)- Expensesincurredintheregioninabsoluteterms

b. [ForprojectspertainingtotheANIMATIONcategory],downwarddeviationsofnomorethan30%areallowedwithrespecttowhat isstated intheApplicationForm,evenforonlyoneofthefollowing:- Ratioofexpensesincurredintheregiontothecostofthefinalcopyoftheproject- RatioofworkingdaysinApuliatototalworkingdays- RatioofworkersregisteredwiththeProductionGuidetototalworkers

c. [For projects pertaining to the FORMAT category], downward deviations of no morethan30%areallowedwithrespecttowhat isstated intheApplicationForm,evenforonlyoneofthefollowing:- WorkingdaysinApulia- WorkersregisteredwiththeProductionGuide(excludingextrasandtrainees)- Expensesincurredintheregioninabsoluteterms

5. If, as a result of the audit, one of the variables referred to in paragraph 4 above is reducedbeyond the 30% threshold, the applicant will be considered as having forfeited the subsidygranted.

6. In theeventofexceptionalandunforeseeablecircumstances, theRegione isentitled toacceptanychangesthatexceedthelimitssetforthintheprecedingparagraphs.

ART.9

(Casesofrevocation,forfeiture,reductionsandwaiversofthefunding)1. Thesubsidyissubjecttototalrevocationwithrepaymentofanamountequaltotheamountof

any aid already paid, plus simple interest calculated at the legal interest rate for the periodbetweenthedisbursementdateandtherevocationdate,inoneormoreofthefollowing:

a. Inthecaseofaidgrantedonthebasisofincorrect,falseorreticentdata,informationorstatements

b. In the event of the start of insolvency proceedings involving a Beneficiary, i.e.dissolution, liquidation, controlled administration or extraordinary administration orcompulsory administrative liquidation, composition with creditors without businesscontinuityordebtrestructuringplan

c. InthecaseofseriousbreachesoftheBeneficiarywithrespecttotheobligationsunderart.15oftheNotice,intheproceduralguidelineandwithrespecttothedocumentationproducedattachedtothesubsidizationapplication

d. Intheeventofseriousirregularitiesresultingfromchecksandcontrolscarriedoutorinthecaseoffailuretocarryoutthechecksandmonitoringactivitiesprovidedforbyart.17oftheNotice

2. The applicant is considered excluded from the proceedings or forfeited from any aid granted,withtherepaymentofanamountequaltotheamountofanysubsidyalreadypaid,plussimpleinterestcalculatedatthelegalinterestratefortheperiodbetweenthedateofdisbursementandexpirydate,inoneormorecasesindicatedbelow:

a. IntheeventofanegativeoutcomeofthecheckscarriedoutpursuanttotheAnti-MafiaLegislation

b. Intheeventofanegativeoutcomeofthechecksaimedatascertainingtaxcompliance,from the date of submission of the subsidization application to the date of the finalconcessionofthesubsidy

c. If the requirements are notmet at the timeof signing theProceduralGuidelineor incaseofnotsigningtheProceduralGuideline

d. Iftherequirementspursuanttoart.3oftheNoticearenotmete. Ifoneoftheconditionsreferredtoinart.12oftheNoticeispresentf. If the terms referred to in paragraph 1 of art. 14 of the Notice are not respected,

without prejudice to the effects of any extensions granted for exceptional andunforeseeableevents

3. Anydelayintherepaymentoftheamountduewillresultintheapplicationofdefaultinteresttotheextentofthelegalinterestincreasedby100basispoints.

4. Upon theoccurrenceofoneormorecausesof revocation, theRegione,havingcompleted theprocedures set forth in Articles 7 and 8 of Law No. 241/1990, transmits the definitiveauthorizationofdeclarationofrevocationandundertakestherecoveryofthesumspaidout.

5. Theamountoftheaidgrantedisreducedatthetimeofthelastbalancepayment,onthebasisofthereimbursableexpensesactuallyincurred,reportedandrecognized.

6. In theeventofaviolationof theaid intensity limitsestablished inart.6of theNotice, theaidgrantedwillbereduceduntilthemaximumallowedlimitisreached.

7. If,inthedetectionoftheaforementionedirregularities,liabilityprofilesfordamagesorpenaltiesareinvolved,theRegioneshalltakeactioninallappropriateareas.

8. To renounce the subsidy, the Beneficiary is obliged to send the disclaimer via CEM, digitallysignedonitsownheadedpaper.

ART.10(Monitoringandsupervisionprocedures)

1. The Regione performs periodic monitoring of the state of implementation of the projectsthroughinspectionsattheregisteredofficeand/oroperationalheadquartersand/orduringtheexecutionoftheactivitiessubjecttofinancing.

2. The Regione may view at any time, even after the completion of the project, the originaldocumentationoftheexpensesincurred,whichmustbekeptbytheBeneficiaryfor5yearsafterthedateofcompletionoftheinvestment.

3. AdditionalchecksmaybecarriedoutbytheRegioneorbythecontrolunitsoperatingatregional,nationalandEUlevels.

4. The Regionemay prepare an impact assessment on the use of the aid paidwithin 24monthsfromthedateoftheconclusionoftheproject.

5. TheBeneficiary,within30daysofthepublicationoftheactoftheacquisitionoftheevaluationresults of the Technical Evaluation Commission on BURP, shall activate a user profile on theMIRWEB electronic information tracking system (accessible at: mirweb.regione.puglia.it)communicatingthistotheProcedureManager.

6. The ProcedureManager shall,within 5 days of the communication referred to in paragraph 5above,transfertheprojecttotheBeneficiary,sothattheBeneficiarymayproceedwithinsertingtheproject’sdataintotheinformationsystem.

7. TheBeneficiary shall update thedata relating to theprojectby thedeadlineof thisProcedureGuideline, making sure to send to the Procedure Manager, once completed, the relatedcertificateofdispatchoftheexpensereport.

8. The data related to the implementation of the project, as reported in the registration andmonitoringinformationsystem,willbemadeavailabletotheInstitutionalBodiesresponsibleformonitoringandchecks.

9. In the case of an inspection, the Beneficiary is informed of the objectives and object of theinspection, with a specific communication signed by the Head of Action and / or Sub Action,whichprovidesinformationonthedateandtimeoftheon-siteinspection.

10. Upon the conclusion of the on-site check, the inspector will prepare an on-site visit reportattestingtotheactivitiesperformed,dulysignedbythesubject/subjectswhohas/havecarriedoutthecheckandcountersignedbytheindividualsubjecttoverification.

11. If, during the on-site inspection activities, designed to verify the project’s activities and therelated procedures implemented, any shortcomings in information or documents and / oranomaliesemerge,theinspectorwillhighlightsuchdiscrepanciesinthecontrolchecklistandintheinspectionreport.

12. Consequently, the Head of Action and / or Sub Action will require the Beneficiary to providecounterarguments (or, in the case of documentation shortcomings, to "correct" the situation)within15daysandsendthedocumentationreceivedtotheinspector.

13. AfterhavingexaminedtheBeneficiary'scounter-claims,theinspectorwillcommunicatethefinalresults of the check to the Head of Action and / or Sub-Action so that they may adopt theconsequentmeasures.

14. If, on the basis of the additions received from the Beneficiary, the irregularities can beconsideredremedied,theHeadofActionand/orSub-ActionshallinformtheBeneficiarythereof.

15. Inthecaseofadecisionthatentails the ineligibilityofsomeexpensesortherevocationoftheproject eligible for financing, the Head of Action / Sub-Action, taking into account the checkscarriedout,willundertakethestartofrecoveryproceduresand/orwithdrawalofthesubsidy.

ART.11(Informationandpublicity)

1. Pursuant to EU Regulation No. 679/2016 and subsequent amendments, the personal datacollected are also processed using IT tools and used in the process in compliance with theconfidentialityobligations.TheProcedureManageristheholderandmanagerofdataprocessing.

2. TheBeneficiary accepts the publication, electronic or in any other form, of their identificationdataandoftheamountoftheaidgrantedpursuanttoart.26and27ofLegislativeDecree.No.33/2013ontransparency.

3. The Beneficiary accepts the publication, electronic or otherwise, of the data and informationrequired by art. 115 (1) and (2) of EU Regulation No. 1303/2013 about information andtransparencyobligationsaboutbeneficiaries.

4. The Beneficiary shall provide all the data requested by the Regione in order to allow thecommunicationofinformationtocitizensthrough"OpenData"systems.

5. The right of access to the acts referred to in art. 22 and pursuant to Law No. 241/1990 andsubsequent amendments, is exercised according to the methods and limits set forth in theaforementionedregulations.

ART.12(Safeguardrules)

1. The Regione remains extraneous to any relationship created with third parties for theimplementationoftheprojectsubjectofthisProceduralGuideline.ThecheckscarriedoutrelateexclusivelytotherelationshipsthatexistwiththeBeneficiary.

2. TheBeneficiaryassumesanyandallcivilandcriminalliabilitytowardsanyone,derivingfromtheinvestments subject to thesubsidy,aswellasany responsibility regarding the requestand thegranting of all the permits and all the certifications required by current legislation in securitymatters.

3. Formattersnotexpresslyprovidedforbytheprecedingarticle,referenceshouldbemadetotheprovisionsoftheNotice,aswellastocurrentEU,nationalandregionallegislation.

4. TheRegionehasthepossibility,withoutprejudice,ofunilaterallyproceedingwiththeintegrationof these regulations with any further requirements and obligations connected to theimplementation of the financed project and compliance with the relevant legislation; thechanges introduced on the basis of this paragraph will be communicated via CEM to theBeneficiary.

ART.13

(DurationoftheProceduralGuideline)1. Withoutprejudicetotheprovisionsofart.14oftheNotice,theeffectsofthepresentregulations

expire upon the Regione’s approval of the final report, the obligations pursuant to art. 15paragraph9andart.17paragraph2oftheNoticepersist.

ART.14

(Resolutionconditionpursuanttoart.3paragraph3ofLegislativeDecree.153/2014)1. In the event that the Computerized Anti-Mafia Certification System (SICEANT) issues an Anti-

MafiareportwithabanonsigningcontractswithpublicauthoritiesonbehalfofthecompetentPrefecture, the Regione will proceed with the immediate termination of this ProceduralGuidelineandwiththerevocationofthesubsidy.

ACKNOWLEDGEMENTOFRECEIPT,READANDDIGITALLYSIGNED.THELEGALREPRESENTATIVEOFTHEBENEFICIARY