SOCIEDAD ARGENTINA DE AUTORS AND COMPOSITORS OF MUSICA (S.A.D.A.I.C.) DECEMBER No. 5.146 Rule Law 17.648.

Bs. As., 12/9/69

VISTO the provisions of Act No. 17.648,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 La The Argentine Society of Authors and Composers of Music (S. A. D. A. I. C.) will be responsible for the perception throughout the territory of the Republic of the economic rights of emerging author of the use of musical and literary works, whatever the medium and the modalities.

Individuals or legal entities, whether national or foreign, who are to receive these economic rights for themselves or for their constituents, must act through the Argentine Society of Authors and Composers of Music. (S.A.D.A.I.C.)

Art. 2° La The Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), is empowered to coordinate procedures for collection and administration with other companies of authors of different kinds, entities of related activity and with the National Fund of the Arts.

Art. 3rd La The Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), in relation to the use of the repertoires in its charge, is authorized to:

(a) Determine the conditions to which users will adjust, grant or deny the prior authorization established in Article 36 of Law 11.723, and concordant rules.

(b) Fix tariffs.

(c) Require users to submit affidavits; control and verify the accuracy of their records.

(d) Requiring the preparation and delivery of implementation planks, as well as programmes and other verification elements.

(e) Control the income, noletries, lockers and other values and modalities to be determined for tariff fixing.

(f) Requiring the intervention of the judicial, administrative and police authorities in the implementation of Act No. 11.723.

(g) To perform the other acts necessary for the purposes of Law 17.648.

Art. 4° s For the determination of its tariffs the Argentine Society of Music Authors and Composers (S. A. D. A. I. C.), may affect the following proportions:

(a) Twenty per cent of the income, when it comes to acts or spectacles for which entry is charged, is perceived to be equivalent to such collection or that is characteristic of its nature. The organizers may not invoke the delivery of free tickets or the freeness of the act or show. In this case the produced will be determined by analogy.

(b) Fifteen per cent of income, when it comes to acts or spectacles not covered by the preceding subparagraph.

(c) Ten percent10% of the global or partial revenues, fees or amounts of radio broadcasters, television broadcasters, broadcasts and recordings in "video-tape"; of the fonographic products of discs, tapes and their similar; of the graphical publications and the exhibition of films.

Art. 5° La The Secretariat of State for the Promotion and Assistance of the Community may increase the caps set out in Article 4° at the request of the Assembly of the Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.) and with the participation of the auditors.

Art. 6° . The Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), may establish surcharges, interests or other additional ones on the tariff, in cases of evasions or other forms of non-compliance by users according to the guidelines and limits set by the Secretariat of State for the Promotion and Assistance of the Community.

Art. 7° La The Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C), may agree on the amount of tariffs and establish complementary modalities, even if the maximum proportions set out in Article 4° are exceeded when the user's contractual conformity is measured.

Art. 8° La The Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), may be in trial as an actor, plaintiff or defendant or in any other procedural quality, in respect of any national, provincial or municipal jurisdiction, in the country or abroad, in matters of their legal competence.

Art. 9° de For the purposes of the application of articles 2° and 3° of Law 17.648, the Argentine Society of Authors and Composers of Music (S. A. D. A. I. C.), will be controlled by:

(a) Control audit;

(b) Planillas audit.

Audits that depend on the Secretariat of State for the Promotion and Assistance of the Community constitute an operating entity and the functions and powers provided for in this decree are carried out for the purpose of the primary allocation of responsibilities.

The Auditors shall last two years in the exercise of their functions, not being able to be appointed for consecutive periods. Each year, for which purpose, the auditor to complete his or her functions in the first year, will be renewed. The performance of the position will be incompatible with any activity that affects or has a bearing on the interests of the association, of the partners as authors or of the copyright.

Art. 10. Please refer to the State Secretariat for Justice to appoint the auditor to be responsible for the audit, who shall have the title of National Public Accountant.

Art. 11. La The Control Audit will have the following functions and powers:

(a) Fiscalize the administration of the entity and the Fund for Mutuality and Social Security, checking periodically the cash status and the existence of titles and values;

(b) Review the books and documents of the entity, at least every three (3) months and submit the respective report to the Secretariat of State for the Promotion and Assistance of the Community;

(c) Dictamine on the Memory, Balance, Inventory and Account of Expenditure and Resources presented by the Board, present this opinion to the Assembly and elevate it to the authority of application.

(d) Verify compliance with the laws, statutes, regulations and resolutions, in particular with respect to the economic rights of the author of the partners and the conditions under which the social benefits are granted, and make the complaints under article 3 of Law 17.648.

(e) To suggest to the Board the modifications that are deemed appropriate in the field of accounting organization, counter, codification, distribution and liquidation of the author ' s economic rights and other income of the Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.), as well as in all other matters concerning control and perception.

(f) To place the Ordinary Assembly when the Board had not done so within four (4) months of the end of the exercise.

(g) Request from the Board, when it is judged necessary, the convening of the Extraordinary Assembly within thirty (30) days and in case of refusal to raise the case to the Secretariat of State for the Promotion and Assistance of the Community.

(h) Inform in the Ordinary Assemblies, or where it deems necessary in the Extraordinary, of the facts which it verifies in the fulfilment of its obligations and to make appropriate observations and complaints.

(i) Propose points to deal with the assemblies, with obligation on the part of the directory to incorporate them into the Order of the Day.

Art. 12. . Please refer to the Secretariat of State for the Promotion and Assistance of the Community to designate the Auditor to be in charge of the audit of seals, who shall have the title of National Public Accountant.

Art. 13. La The Board Audit will have the following functions and powers:

(a) To monitor before its liquidation the tables which, under the applicable system, should be paid for in recognition of the authors ' economic rights;

(b) Control the documentation used to register these rights;

(c) Organize the systems and equipment of the counter and dispose of inspections in the premises of the users, in order to verify compliance with the legal, regulatory and statutory obligations on tables, programmes and other related obligations;

(d) Become the branches of the Argentine Society of Authors and Composers of Music, (S. A. D. A. I. C) to perform controls on tables;

(e) Request the Board the Instruction of Summarys, whose Controller shall exercise to the partners that "first facie" appear as transgressors of the rules on grids, with preventive measures and the impact of their income until the final resolution;

(f) Request the Board for the instruction of summons, which shall be given a hearing, to give opinion to "first-facie" officials or employees responsible for participation, collusion and authorship, of acts that mean violations of the rules on tables and their verification and liquidation process;

(g) Request the Board to make complaints or to promote criminal complaints against partners, officials, employees, users and third parties who have committed violations of the planks regime without prejudice to its powers and to make a complaint directly where necessary;

(h) Propose points to be dealt with by the Assemblies, with obligation on the part of the Board to incorporate them into the Agenda;

(i) To propose to the Board the conduct of studies or the establishment of systems that seek to ensure the right of author in all its aspects;

Art. 14. Los The Auditors in charge of the Audits of Control and Planillas will attend the meetings of the Board of Directors of the Society of Authors and Composers of Music, with voice but without vote. The records will record their reports and observations. They will not be taken into account for the formation of the quorum.

Art. 15. La The Secretariat of State for the Promotion and Assistance of the Community shall provide for the appropriate exercise of the functions assigned to them by the present decree.

Art. 16. Las The remuneration of the Auditors will be set by the Secretariat of State for the Promotion and Assistance of the Community and will be in charge of the Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.). The total amount of the retribution, for any reason, cannot be higher than that obtained by the best paid official of the Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.).

Art. 17. When the discount of the Argentine Society of Authors and Composers of Music (S. A. D. A. I. C.) for its administrative cost exceeds thirty percent (30%) of its collection, the auditors jointly or separately shall inform the Secretariat of State for the Promotion and Assistance of the Community and propose the measures for its reduction.

Art. 18. . The Auditors may collect from the Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.) all information concerning the dissemination of the author's repertoire, as well as on the protection measures that have been taken on such repertoires.

Art. 19. Las The requirements for local, personal, elements and budgets for compliance with the Control and Plant Audits will be carried out by the Sociedad Argentina de Autores y Compositores de Música (S.A. D. A. I. C.).

Art. 20. de Without prejudice to other categories established in its statutes, the Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.) must recognize the following basic categories of members:

(a) Represented;

(b) Participating partners;

(c) Honorary partners;

(d) Adherent partners;

(e) Partners administered;

(f) Active partners;

Art. 21. : They will have the conditions of representation:

(a) The authors or composers of music that do not meet the requirements to be partners;

(b) Related activities entities;

(c) Foreign societies;

(d) The editors.

Art. 22. . In the event that more than one (1) heir exists they must unify his personry for the purposes of the perception of the corresponding rights.

Art. 23. . The requirements inherent in the categories provided for in article 20, subparagraphs; (b) and (c) are those set out in articles 9 and 10 of the Statute of S.A. D.A. I. C.

Art. 24. . Those who have an edited or recorded work will be considered adhering partners. The statutes shall set the conditions for admission, both in terms of the vocational training regime, and in respect of the income quota.

Art. 25. . They will be managed partners, without prejudice to the status of those who have a minimum of three (3) years as adhering partners; five (5) edited works, of which two (2) must be recorded and have received revenue by copyright in the proportion established by the statute.

Art. 26. : Active partners will be those who credit:

(a) Ten (10) edited works of which five (5) shall be recorded, an antiquity of three (3) years as managed partner and have perceived as author's law on an average annual basis during the last three liquidated periods, a sum not less than twenty-five thousand national currency (m$n. 25,000), having to correspond at least twenty per cent (20%) of that amount to one or more of the following categories: radio, television

(b) Have premiered at least three (3) hours of symphonic genre or six (6) works between symphonic and chamber genre.

(c) At the date of the publication of the present decree to have an uninterrupted antiquity of twenty-five (25) years as active partners, and to have received copyright in five years with the same minimum percentage set in subparagraph (a) of this article; or

(d) The authors referred to in article 34, subparagraph (c), who had received on the basis of copyright on an annual basis during the last three liquidated periods, an amount not less than twenty-five thousand national currency (m$n 25,000).

In the case of subparagraphs (a) and (d) the sum of twenty-five thousand pesos national currency (m$n 25,000) may be increased or decreased by the Secretariat of State for the Promotion and Assistance of the Community, at the request of the assembly and with the participation of the auditors.

In the circumstances of subparagraph (b) the partner will maintain the asset category when within five (5) years, release a symphony or two chamber work.

Art. 27. Los The statutes will lay the foundations for the promotion or descent of the partners in the relevant categories, with the exception that the quality of assets of the partner contemplated in the case of article 26 (c).

Art. 28. Las The powers, which by Law No. 17.648 and this decree are granted to active partners, cannot be equaled by the remaining categories of partners.

Art. 29. ). Every active partner in the payment of the social quota has the right to a vote that will be increased by one more up to a total maximum of ten (10), for every one hundred thousand pesos national currency (m$n. 100,000) that the partner has perceived as copyright, on an annual average, in the last three (3) liquidated exercises of society, with the same minimum percentage established in article 26, paragraph (a).

The above figure shall be proportionally identical to those referred to in article 26 (a).

Art. 30. Todo Any partner who was tested by summary or court ruling will be disqualified for ten (10) years to:

(a) Exercise the right to vote;

(b) Perceiving any emerging amount of the distribution of the fund without tables referred to in article 37 (d);

Art. 31. Los The active partners will be classified by the Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), according to the genre they cultivate, in authors and composers of:

1 . Popular music.

2 . Native or folk music.

3 . Erudita music.

4 . Music intended for movies, radio, theatre, television and advertising or similar features.

If the author or composer is in more than one genre, he will be classified in which he ostensibly possesses greater history, and in his absence he who has earned greater collection in the last three (3) years.

Art. 32. . To integrate the directory you must be native or naturalized Argentine, older and active partner with the right to vote.

Art. 33. s Separate registers will be used for each of the items in Article 31 and a unified pattern for the purposes set out in the penultimate paragraph of Article 34.

Art. 34. El The directory will consist of eleven (11) members, representing each of the items in Article 31, in the following proportion:

(a) Three (3) members of the authors and composers of popular music.

(b) Two (2) members of the authors and composers of native or folk music.

(c) One (1) member of the authors and composers of music for films, radio, theatre, television and advertising, or similar features.

(d) One (1) member of the authors and composers of erudita music.

The most voted candidates shall be considered elected, from the respective ranks in the indicated proportion.

The remaining four (4) members may belong to any of the genres of Article 31 and will be elected two (2) by all active partners entitled to vote and two (2) always between active partners, by the managed partners.

In the same procedure and proportion, eleven (11) alternate members shall be elected.

Art. 35. Las The decisions of ordinary or extraordinary assemblies will be resolved by a simple majority of votes of the present partners.

Art. 36. . Board members will determine by a simple majority which of them will serve as president, vice president, secretary, prosecretary, treasurer, protesor and vowels.

Art. 37. La The Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), in order to complete the mission of sharing the emerging amounts of authorial economic rights that are collected by their intervention, will conform to the following rules:

(a) The works should be qualified as: edited, recorded, phnomeconic or any other similar means of reproduction.

(b) The administrative cost will be deducted from the amounts received.

(c) The distribution shall be carried out by user and by board with the justified exceptions or variants that are included in the present or the statute of the association.

(d) In cases of total or partial deficiencies of seedlings or when they are rejected by irregularities, the settlement of the amounts shall be carried out on the sale of all items that produce income as a result of the copyright. In relation to the tables will be computed those that meet the economic conditions established by the statute.

Art. 38. . For the purposes of article 37, subparagraph (d), the apportionment shall be distributed proportionally to the rights accrued by edited or recorded works, taking into account all the items that produce revenue as a result of the copyright; but it shall be a condition to participate in it, to have at least twenty per cent (20%) of the rights in one or more of the following headings: radio, television and outside. The statutes shall establish the precautions that the execution tables shall have to integrate the assessment. The works referred must have been denounced to the Argentine Society of Authors and Composers of Music (S. A. D. A. I. C.) and inescapably fulfilled the requirements of the relevant type contracts.

Art. 39. . Enter the edited work of the one that occurs, diffused and sold in the trade already through the holding of an editing contract or on behalf of the author and meet the modalities that the Argentine Society of Authors and Composers of Music (S.A. D. A I. C.) will establish in its statutes, setting the minimum conditions that must satisfy the type of edition contracts. Identical temperament will apply for the purpose of considering a recording.

Art. 40. El The method of countering edited or recorded works or similar means of reproduction shall be fixed in the statutes, according to the modalities of each case and adopted the procedure of correlative numbering or signature of the author or his representative as appropriate.

Art. 41. . It will be the obligation of the auditors to verify, together with the Sociedad Argentina de Autores y Compositores de Música (S. A. D. A. I. C.), the satisfaction of the requirements related to the editing and recording of a work.

Art. 42. The Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.), will faithfully verify the fulfillment of the precautions that are established and will have the necessary measures to ensure the legitimacy of the edition or recording made. The Comptroller shall also exercise in respect of any reissue or re-recording of works belonging to those persons whose representation is exercised by the Argentine Society of Authors and Composers of Music (S.A. D. A. I. C.), for which purpose the responsible natural or legal persons shall notify the latter beforehand.

Art. 43. . The statutes of the Sociedad Argentina de Autores y Compositores de Música (S. A D. A. I. C.), should provide for a mandatory display of the corresponding external tables at forty-eight (48) hours received and even the perception of the corresponding rights.

Art. 44. The Secretariat of State for the Promotion and Assistance of the Community will adopt the necessary precautions to make within the end of one hundred and eighty (180) days from the date of this decree, elections are made for the integration of the directory of the Argentine Society of Music Authors and Composers (S. A. D. A. I. C.).

Art. 45. El This decree will be endorsed by the Ministers of Social Welfare and the Interior and signed by the Secretaries of State for the Promotion and Assistance of the Community and of Justice.

Art. 46. . Communicate, publish, give to the National Directorate of the Official Register and archvese.

NGOsANIA.

Carlos A. Consigli. Francisco A. Imaz. Conrado Etchebarne. Santiago M. de Estrada.