CLASSIFICATION AND RATING RULES

Effective as revised July 24, 2020

Motion Picture Association, Inc.

15301 Ventura Boulevard Building E

Sherman Oaks, California 91403

National Association of Theatre Owners, Inc.

1705 N Street, NW

Washington, D.C. 20036

CONTENTS

INTRODUCTION ............................................................................................................. 1

ARTICLE I ORGANIZATION OF CLASSIFICATION AND RATING

ADMINISTRATION .................................................................................. 1

ARTICLE II SUBMISSION OF MOTION PICTURES FOR RATING ............................ 2

Section 1. Motion Pictures That May be Submitted for Rating..................................... 2

Section 2. Procedures for Submitting Motion Pictures for Rating ................................ 3

Section 3. Rating Classifications ................................................................................. 5

Section 4. Submission of Rated Motion Pictures for New and Different Ratings ......... 7

ARTICLE III PROPER USE OF THE RATINGS ........................................................... 9

Section 1. Use of the Ratings...................................................................................... 9

Section 2. Violation of the Rules; Sanctions .............................................................. 10

Section 3. Proceedings for Imposing Sanctions ........................................................ 11

ARTICLE IV CLASSIFICATION AND RATING APPEALS BOARD ............................ 12

Section 1. Organization............................................................................................. 12

Section 2. Responsibilities of the Appeals Board and Observers .............................. 13

Section 3. Procedures for Filing Appeals .................................................................. 14

Section 4. Conduct of Appeals .................................................................................. 16

ARTICLE V ADMINISTRATION OF THESE RULES ................................................. 19

Classification and Rating Rules Effective July 24, 2020

INTRODUCTION

The Classification and Rating Administration ("CARA") and the Classification and Rating

Appeals Board were established by the Motion Picture Association, Inc. ("MPA") and the

National Association of Theatre Owners, Inc. ("NATO") as part of a voluntary system to

provide information to parents to aid them in determining the suitability of individual

motion pictures for viewing by their children. CARA is operated as an independent

division of MPA. The CARA Rating Board issues ratings for motion pictures exhibited

and distributed in the United States.

The Rating Board does not determine the content that may be included in motion

pictures by filmmakers, nor does it evaluate the quality or social value of motion pictures.

By issuing a rating, it seeks to inform parents of the level of certain content in a motion

picture (violence, sex, drugs, language, thematic material, adult activities, etc.) that

parents may deem inappropriate for viewing by their children. It is not CARA's purpose

to prescribe socially-appropriate values or to suggest any evolution of the values held by

American parents, but instead to reflect the current values of the majority of American

parents, so that parents benefit from and feel fairly informed by the ratings system.

The members of the MPA and NATO are not involved in the Rating Board's

determination of the ratings assigned to individual motion pictures. The Rating Board is

self-supporting, based on fees it receives from producers and distributors of motion

pictures submitted for rating. Those fees are assessed in relation to the negative cost

of the submitted motion picture and the submitting party's yearly aggregate gross income

from motion picture distribution.

Following are the Rules that govern the functioning of the rating system. They are

intended to provide guidance to producers, distributors and exhibitors as well as to

members of the public about the operation of the rating system and the meaning of the

ratings.

ARTICLE I ORGANIZATION OF CLASSIFICATION AND RATING

ADMINISTRATION

A. As outlined in these Rules, CARA rates motion pictures intended to be

exhibited and distributed commercially to the public in the United States

to provide parents information concerning the content of those motion

pictures to help them determine each motion picture's suitability for

viewing by their children.

B. The Rating Board of CARA is comprised as follows:

(1) A Chairperson, appointed by the Chairman of the MPA with the

concurrence of the President of NATO, who is ultimately

responsible for the rating of all motion pictures submitted to CARA

and for the operation and administration of CARA.

(2) Appropriate staff members, one of whom is designated

Administrative Director by the Chairperson.

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(3) Senior Raters, selected by the Chairperson from among the

Raters, who have demonstrated experience and judgment in the

rating of motion pictures. Senior Raters lead the deliberations of

the Raters that result in the rating of individual motion pictures,

then communicate with the rating contact for ratings about those

motion pictures and ensure continuity and consistency of the

ratings system.

(4) Raters, who participate in the rating of individual motion pictures

together with the Chairperson and the Senior Raters. Raters

serve for up to seven years, at the discretion of the Chairperson.

The Chairperson attempts to select a group of Raters who

represent the diversity of American parents.

C. Each member of the Rating Board must be a parent and may not have

any other affiliation with the entertainment industry. The Chairperson and

Senior Raters may have children of any age. Raters must have children

between the ages of five and fifteen when they join the Rating Board and

must leave the Rating Board when all of their children have reached the

age of twenty-one.

D. The Chairperson of CARA will develop and maintain a curriculum of

relevant materials for the initial training of Raters and for periodic review

with them of the standards applied by the majority of American parents to

determine the motion picture content suitable for viewing by their children.

E. The identities of the Chairperson of CARA and of the Senior Raters will

be disclosed to the public and to producers and distributors who submit

motion pictures for rating by CARA. The identity of the other Raters will

not be disclosed, to protect them from being subject to pressure from

members of the public and producers and distributors of motion pictures

with respect to the rating of individual motion pictures.

ARTICLE II SUBMISSION OF MOTION PICTURES FOR RATING

Section 1. Motion Pictures That May be Submitted for Rating

A. For purposes of these Rules, "motion picture" includes feature motion

pictures and shorts. A “feature motion picture” is a film with a running time

of greater than 30 minutes. A “short” is a motion picture that has a

running time of 30 minutes or less, including all credits, that does not

constitute advertising in the judgment of CARA and the Advertising

Administration. CARA and the Advertising Administration will make the

advertising determination taking into account such criteria as the extent to

which: (i) the content can stand on its own as a self-contained motion

picture, (ii) it contains images from an as yet released feature motion

picture and (iii) it serves as a preview or promotion of an upcoming

feature motion picture. To the extent CARA and the Advertising

Administration determine that content submitted for rating under these

Rules as a short is advertising, the content will be subject to the

Advertising Administration Rules.

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B. For purposes of these Rules, a motion picture is "exhibited" if it has been

made commercially available for screening for paid admission in a

commercial motion picture theatre for a run of at least seven consecutive

days and has been advertised during that run in a manner considered

normal and customary to the industry.

C. For purposes of these Rules, a motion picture is "distributed" if it has

been made commercially available for sale or license to members of the

public for personal home use. As used in these Rules, "distribution" does

not include the distribution of a motion picture for theatrical exhibition

unless otherwise specifically indicated.

D. CARA will rate any motion picture at any time before or after it is exhibited

or distributed in the United States.

E. For purposes of these Rules, an "MPA member" is any member of the

MPA, and any parent or subsidiary of such a member or of such a parent

or subsidiary ("parent" and "subsidiary" relationships are those in which

one legal entity has greater than a 50% ownership interest in another

legal entity).

F. All motion pictures intended for exhibition in the United States produced

or theatrically distributed by a member of the MPA must be submitted to

CARA for rating. Such motion pictures may only be exhibited in the

United States with a CARA rating and rating descriptors and are subject

to these Rules, as well as the Advertising Administration Rules.

G. Any motion picture not produced or theatrically distributed by a member

of the MPA may be submitted to CARA for rating in the same manner and

under the same conditions as those applicable to submission of motion

pictures by members of the MPA. However, the producer or distributor of

such a motion picture may elect not to accept the rating and rating

descriptor for that motion picture, or to surrender the rating for the motion

picture, and thereafter may exhibit or distribute the motion picture in the

United States without a rating.

H. A rating certified by CARA for a motion picture may not be used in

connection with the exhibition or distribution of any different version of

that motion picture.

Section 2. Procedures for Submitting Motion Pictures for Rating

A. CARA will issue a rating only after the Rating Board has viewed the

completed motion picture.

B. At the Chairperson's discretion, when the Chairperson determines that

advance consultation may expedite the rating process or otherwise

enhance the efficiency or integrity of the system, the producer or

distributor of a motion picture may request that the Chairperson of CARA

review elements of the motion picture ( e.g., the script, individual scenes,

or segments of the motion picture) before submission of the completed

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motion picture for rating. The Chairperson may advise the producer or

distributor about potential ratings and rating descriptor for the completed

motion picture. Such consultation is solely for the information of the

producer or distributor and will not be considered by the Rating Board in

its rating of the motion picture or by the Appeals Board upon an appeal of

the rating. Any such advice must be treated as confidential by the

producer or distributor.

C. The producer or distributor submitting a motion picture for rating by the

Rating Board must complete the Submittal Agreement and must pay the

applicable fee in accordance with the then-current uniform schedule of

fees. The current Agreement and schedule of fees are attached to these

Rules.

D. The producer or distributor submitting a motion picture for rating must

designate a representative (the "rating contact") who is authorized to

communicate with CARA and to accept the rating and rating descriptor.

All communications by CARA relating to the rating and rating descriptor of

that submitted motion picture must be with the rating contact or with a

person authorized by the rating contact to communicate with CARA about

the rating and rating descriptor. Such communications must be treated

as confidential at all times. The producer or distributor submitting that

motion picture for rating also must designate a representative (the

"advertising contact") who is authorized to communicate with the

Advertising Administration regarding the approval of advertising for the

motion picture and is responsible for compliance with the Advertising

Administration Rules.

E. A motion picture submitted for rating is viewed by designated members of

the Rating Board, including at least one Senior Rater. After the Raters

view the motion picture, each Rater submits a preliminary ballot to the

designated Senior Rater, giving the Rater's view of the appropriate rating

of the motion picture. The Raters who viewed the motion picture then

discuss the appropriate rating and reach agreement on a rating for the

motion picture. After the Raters determine the rating of the motion

picture, each Rater prepares a final ballot with his or her rating for the

motion picture and details of the content of the motion picture that in his

or her view require that rating. The Raters' ballots are treated at all times

as confidential and are not disclosed outside CARA

F. The Rating Board may view multiple versions of the motion picture

submitted by the producer or distributor prior to certification of the rating.

The Chairperson of CARA may regulate the intervals between

consecutive screenings of such versions of a motion picture by the Rating

Board to avoid the potential for diminished sensitivity to the content of the

motion picture.

G. Every motion picture assigned a rating of PG, PG-13, R or NC-17 by the

Rating Board also is assigned a "rating descriptor." This rating descriptor

helps guide parents on the type of content that resulted in the motion

picture being assigned that rating; modifiers indicate the type and

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intensity of specific elements in the movie. The rating descriptor does not

constitute an exhaustive list of the type of content in the motion picture

but reflects only the type of content in the motion picture that is strong

enough to merit the rating category assigned to the motion picture. (E.g.,

a motion picture rated R with a rating descriptor only for "sexual content"

also may include language, depictions of violence or other rating relevant

elements, but only at a PG-13 or lower level.) The rating descriptor for

each rated motion picture is determined by the Chairperson of CARA or

the Senior Rater, in conjunction with the Raters who viewed the motion

picture, based on the elements of the motion picture identified in the

ballots of the Raters who viewed the motion picture as elements that

caused the motion picture to receive that rating.

H. After the Rating Board assigns a rating to the motion picture, CARA will

inform the rating contact of that rating and the rating descriptor. The

rating contact will advise CARA whether the producer or distributor

accepts the rating and rating descriptor.

I. When the rating and rating descriptor for the motion picture are accepted

by the rating contact, CARA will issue a Certificate to the holder of the

distribution rights for the motion picture that identifies the producer or

distributor of the motion picture that submitted the motion picture for

rating, the rating of the motion picture, and the Certificate Number of the

rating.

J. If the rating contact has not accepted the rating and rating descriptor for

the motion picture within six (6) months of the assignment of the rating to

the motion picture by the Rating Board, the Chairperson of CARA may

require that the motion picture be re-screened by the Rating Board prior

to certification of the rating and rating descriptor.

K. CARA may make and/or retain a copy of any version of any motion

picture submitted for rating as a reference to compare it to any other

version submitted for rating and, after a rating has been certified, to verify

that the version being exhibited or distributed is the rated version, or for

any other reason related to the rating of that motion picture or the

administration of the rating system.

Section 3. Rating Classifications

A. Ratings and rating descriptors issued by CARA are intended to be used

by parents to assist them in determining whether the motion picture is

appropriate for their children to see and whether their children should be

accompanied while seeing the motion picture. In rating a motion picture,

the Rating Board evaluates each motion picture in its entirety and

considers those aspects of the motion picture that most parents would

consider in determining whether that motion picture is suitable for viewing

by their children, including mature themes, language, depictions of

violence, nudity, sensuality, depictions of sexual activity, adult activities

(i.e. activities that adults, but not minors, may engage in legally), and drug

use.

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B. CARA assigns a rating to each motion picture. CARA assigns the rating

the Rating Board believes would best reflect the opinion of most

American parents about the suitability of that motion picture for viewing by

their children. When CARA assigns a rating, it also provides a rating

descriptor for that rating in order to better inform parents of the elements

of the motion picture that caused the motion picture to be given that

rating.

C. CARA assigns one of the following ratings, with the following meanings,

to each picture:

(1) G - General Audiences. All Ages Admitted.

A G-rated motion picture contains nothing in theme, language, nudity,

sex, violence or other matters that, in the view of the Rating Board, would

offend parents whose younger children view the motion picture. The G

rating is not a "certificate of approval," nor does it signify a "children's"

motion picture. Some snippets of language may go beyond polite

conversation but they are common everyday expressions. No stronger

words are present in G-rated motion pictures. Depictions of violence are

minimal. No nudity, sex scenes or drug use are present in the motion

picture.

(2) PG - Parental Guidance Suggested. Some Material May Not Be

Suitable For Children.

A PG-rated motion picture should be investigated by parents before they

let their younger children attend. The PG rating indicates, in the view of

the Rating Board, that parents may consider some material unsuitable for

their children, and parents should make that decision.

The more mature themes in some PG-rated motion pictures may call for

parental guidance. There may be some profanity and some depictions of

violence or brief nudity. But these elements are not deemed so intense

as to require that parents be strongly cautioned beyond the suggestion of

parental guidance. There is no drug use content in a PG-rated motion

picture.

(3) PG-13 - Parents Strongly Cautioned. Some Material May Be

Inappropriate For Children Under 13.

A PG-13 rating is a sterner warning by the Rating Board to parents to

determine whether their children under age 13 should view the motion

picture, as some material might not be suited for them. A PG-13 motion

picture may go beyond the PG rating in theme, violence, nudity,

sensuality, language, adult activities or other elements, but does not

reach the restricted R category. The theme of the motion picture by itself

will not result in a rating greater than PG-13, although depictions of

activities related to a mature theme may result in a restricted rating for the

motion picture. Any drug use will initially require at least a PG-13 rating.

More than brief nudity will require at least a PG-13 rating, but such nudity

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in a PG-13 rated motion picture generally will not be sexually oriented.

There may be depictions of violence in a PG-13 movie, but generally not

both realistic and extreme or persistent violence. A motion picture's

single use of one of the harsher sexually-derived words, though only as

an expletive, initially requires at least a PG-13 rating. More than one

such expletive requires an R rating, as must even one of those words

used in a sexual context. The Rating Board nevertheless may rate such

a motion picture PG-13 if, based on a special vote by a two-thirds

majority, the Raters feel that most American parents would believe that a

PG-13 rating is appropriate because of the context or manner in which

the words are used or because the use of those words in the motion

picture is inconspicuous.

(4) R - Restricted. Children Under 17 Require Accompanying Parent

or Adult Guardian.

An R-rated motion picture, in the view of the Rating Board, contains some

adult material. An R-rated motion picture may include adult themes, adult

activity, hard language, intense or persistent violence, sexually-oriented

nudity, drug abuse or other elements, so that parents are counseled to

take this rating very seriously. Children under 17 are not allowed to

attend R-rated motion pictures unaccompanied by a parent or adult

guardian. Parents are strongly urged to find out more about R-rated

motion pictures in determining their suitability for their children.

Generally, it is not appropriate for parents to bring their young children

with them to R-rated motion pictures.

(5) NC-17 - No One 17 and Under Admitted.

An NC-17 rated motion picture is one that, in the view of the Rating

Board, most parents would consider patently too adult for their children 17

and under. No children will be admitted. NC-17 does not mean

"obscene" or "pornographic" in the common or legal meaning of those

words, and should not be construed as a negative judgment in any sense.

The rating simply signals that the content is appropriate only for an adult

audience. An NC-17 rating can be based on violence, sex, aberrational

behavior, drug abuse or any other element that most parents would

consider too strong and therefore off-limits for viewing by their children.

Section 4. Submission of Rated Motion Pictures for New and Different

Ratings

A. CARA will replace a rating and rating descriptor for a motion picture with

a rating and rating descriptor for a different version of the rated motion

picture (also known as "re-rating" the motion picture) only if the originally

rated version has not been exhibited or distributed in the United States.

The Rating Certificate for the original version must be surrendered and

canceled when the different version of the motion picture is submitted for

re-rating and a new rating will be certified following the re-rating.

Classification and Rating Rules Effective July 24, 2020

B. CARA will issue an additional rating and rating descriptor for any version

of a motion picture different from the original version that has been

exhibited or distributed in the United States, which for purposes of these

Rules will be referred to as a "differently-rated" version. (The rating and

rating descriptor for the motion picture may not be replaced after a

version of the motion picture has been exhibited or distributed in the

United States; only an additional rating may be issued then for a different

version of the motion picture.)

C. If the original version has been exhibited in theatres in the United States,

and the different version receives a different rating than the exhibited

version or is unrated (or if the exhibited version was unrated), that

different version may be exhibited, distributed, promoted or advertised in

the United States only following the complete withdrawal everywhere in

the United States from exhibition and related advertising of the original

version ("withdrawal period").

D. After the completion of that withdrawal period, the originally rated version

may be released in the home entertainment market, by itself or

simultaneously with the differently-rated version.

E. The length of the withdrawal period must be sufficient to prevent

confusion by the public between the original version and the differently-

rated version. A withdrawal period of not less than ninety (90) days will be

deemed sufficient to prevent such public confusion. Upon a showing of

good cause by the submitting party, the Chairperson of CARA may

determine that a withdrawal period of less than ninety (90) days is

sufficient to prevent such public confusion in light of all of the

circumstances related to that motion picture. In making such a

determination, the Chairperson of CARA will consider, among other

criteria, the following factors:

(1) The number of theatres in which the original version of the motion

picture has been exhibited;

(2) The duration of each run;

(3) The extent of the advertising and publicity for the original version

of the motion picture;

(4) The extent of any other distribution of the original version of the

motion picture; and

(5) Any other factors that might cause or mitigate public confusion

about the rating of the motion picture between the original version

and the differently-rated version.

The rating and rating descriptor for the differently-rated version may be

certified immediately by the Rating Board. The rating and rating descriptor

for the differently-rated version may be used with that different version

only after the completion of the withdrawal period for the original version.

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If the Rating Board completes its rating of the different version prior to the

withdrawal of the original version or during the withdrawal period, the

Chairperson of CARA will specify in the Transmittal Letter for the Rating

Certificate the end of the withdrawal period, if that date then can be

determined, or that the differently-rated version may not be exhibited or

distributed with the different rating until the completion of a suitable

withdrawal period to be determined later by the Chairperson of CARA.

The Chairperson of CARA will notify the CEO of the MPA and the

President of NATO of the date specified for the completion of the

withdrawal period, if that date is less than ninety (90) days after the

complete withdrawal of the original version of the motion picture from

exhibition and related advertising. The CEO of the MPA and the

President of NATO may decide, for good cause, to specify a different date

for completion of that withdrawal period.

F. The differently-rated version must display the following information

prominently on its advertising and packaging: "This -rated version

contains material different from the original -rated version"; and it must

indicate in the title of the motion picture that the differently-rated version is

different from the original version.

ARTICLE III PROPER USE OF THE RATINGS

Section 1. Use of the Ratings

A. The G, PG, PG-13, R and NC-17 rating symbols and legends are

Certification marks registered by the MPA with the United States Patent

and Trademark Office. In order to ensure that the public is aware of the

status of each of these marks, use of the standard trademark notice ®

next to the rating symbol is required on materials issued to the public

which include any of the rating marks. The rating symbols and legends

may not be self-applied and may only be used with the authorization of

the MPA in connection with motion pictures that have been rated by

CARA, in accordance with the Rules set forth herein and the Advertising

Administration Rules. The unauthorized use of the MPA's rating symbols

constitutes trademark infringement, creates public confusion and violates

these Rules.

B. Once the rating and rating descriptor of a motion picture have been

certified by CARA, all copies of that version of the motion picture that are

exhibited or distributed in the United States must be identical to the copy

rated by CARA and must use the CARA rating and rating descriptor for

that version.

C. If a motion picture is rated, released, then edited and a different version is

rated in accordance with these Rules, only the most recently rated

version may be exhibited and it must carry the rating and rating descriptor

associated with that differently-rated version of the motion picture. If the

different version of the motion picture is placed in a different rating

category than the original version, it may not be exhibited or distributed

prior to the completion of the withdrawal period as specified in these

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Rules. However, two versions of a motion picture that have been placed

in the same rating category by CARA may be exhibited or distributed

simultaneously.

D. A rating is issued by CARA on the condition that all of the terms and

conditions stated in these Rules, the Submittal Agreement, the

certification letter and the Rating Certificate are binding on the producer

or distributor who submits the motion picture, as well as its agents,

assignees, or any other person or entity acting under the actual or

apparent authority or license of the submitting producer or distributor, and

on any other rightsholder that exhibits or distributes the motion picture in

the United States after the issuance of that rating and on that other

rightsholder's agents, assignees, or any other person or entity acting

under that other rightsholder's actual or apparent authority or license.

E. At all times that a motion picture is submitted for a rating or while a

motion picture with a rating is being exhibited, distributed or advertised,

the producers and distributors of the motion picture must comply with the

MPA's Advertising Administration Rules. Failure to comply with the

Advertising Administration Rules may result in suspension of the rating

process or revocation of the Rating Certificate.

F. Rated motion pictures must bear prominently on every copy exhibited or

distributed in the United States the number of the Rating Certificate and

the official Seal of the MPA with the words "Certificate Number," followed

by the number of the Rating Certificate and the symbol of the rating

assigned to the motion picture. To the extent possible, the Seal of the

MPA, the rating and number must be displayed in uniform type, size and

prominence. The Chairperson of CARA may waive the requirements of

this paragraph F for good cause for any motion picture for which the

producer(s) and distributor(s) of the motion picture are not members of

the MPA.

G. If a rated version of a motion picture is distributed in the home

entertainment market with audiovisual material in addition to the rated

motion picture, such as deleted scenes, interviews, commentary, bonus

material or other similar materials ("unrated content"), the distributor must

comply with the Advertising Administration Rules with respect to such

product and must include on the packaging of the product the following

legend: "This product contains the _-rated motion picture and additional

unrated material" or a similar legend acceptable to the Advertising

Administration.

Section 2. Violation of the Rules; Sanctions

A. Any violation of these Rules, the submittal agreement, the certification

letter, the Rating Certificate, the Advertising Administration Rules or any

other provisions governing the rating of a motion picture by CARA shall

be grounds for the imposition of sanctions.

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B. The following sanction may be issued for violation of the rules governing

the rating system:

(1) CARA may revoke the rating issued by it to the motion picture;

(2) If the motion picture has not yet been rated, the rating process

may be suspended or the motion picture may be removed from

the rating process entirely;

(3) The rating process for any other motion pictures submitted for

rating by the distributor (including any parent, subsidiary, affiliate,

agent, servant, employee, licensee, sub-licensee, assignee or

successor-in-interest to the distributor that is determined to have

been responsible for the violation) may be suspended for such

time as the Chairman of MPA and the President of NATO

determine is appropriate;

(4) The distributor (including any parent, subsidiary, affiliate, agent,

servant, employee, licensee, sub-licensee, assignee or successor-

in-interest to the distributor that is determined to have been

responsible for the violation) may be suspended from participating

in the rating system for such time as the Chairman of MPA and

the President of NATO determine is appropriate, but in no event,

for more than ninety (90) days; and/or

(5) Any other sanction listed in these Rules or the Advertising

Administration Rules and any sanction deemed appropriate by the

Chairman of MPA and President of NATO to remedy the violation.

Failure by CARA to seek a sanction for a violation of these Rules

should not be construed as a waiver of the violation.

Section 3. Proceedings for Imposing Sanctions

A. An action for sanctions, other than for a violation of the Advertising

Administration Rules, is commenced by CARA as follows:

(1) The Chairperson of CARA will advise the CEO of the MPA in

writing of the facts on which an appropriate sanction is sought,

with a copy to the producer or distributor and, where possible, with

telephonic notice thereof.

(2) In consultation with the CEO of the MPA, the President of NATO,

and the Chairperson of CARA, a date and time, no later than

ten (10) business days after notice is given to the producer or

distributor, will be set for a hearing to provide the producer or

distributor an opportunity to be heard.

B. Sanctions proceedings will be heard by the CEO of the MPA and the

President of NATO or, in their absence, a designated officer of their

respective organizations (other than the Chairperson of CARA or other

member of the Rating Board). At the hearing, oral and documentary

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evidence may be introduced by the producer or distributor and by

representatives of CARA. If the CEO of the MPA and the President of

NATO or their designees, upon review of the evidence, determine that the

CARA Rules have been violated and that the violation has not been cured

adequately, they may issue an appropriate sanction commensurate with

the violation. The sanction proceeding will be decided as expeditiously as

possible and a written determination will be made. The decision of the

CEO of the MPA and the President of NATO, or their designees, is final.

During the pendency of the sanction proceeding, the producer or

distributor of the motion picture may take steps to cure the violation that

gave rise to that proceeding. The CEO of the MPA and the President of

NATO may, in their discretion, determine that such violation has been

effectively cured at any time prior to issuance of a final decision in the

proceeding and may cancel the proceeding.

C. If the revocation of a rating is ordered pursuant to such sanction

proceedings, all rated copies of that motion picture must be immediately

withdrawn from exhibition and written request must be made to

distributors of home entertainment for the return of all rated copies. A

copy of all such requests will be provided promptly to the CEO of the

MPA and the President of NATO.

ARTICLE IV CLASSIFICATION AND RATING APPEALS BOARD

Section 1. Organization

A. The Classification and Rating Appeals Board ("Appeals Board") is

composed as follows:

(1) The CEO of the MPA or his/her representative (who is the

Chairperson of the Appeals Board).

(2) Three representatives designated by each member company of

the MPA.

(3) The President of NATO or his/her representative.

(4) Up to three representatives designated by each of up to eight

NATO members designated periodically by NATO.

(5) The MPA and NATO may establish minimum qualifications for

experience and job responsibilities for the representatives that

may be designated to the Appeals Board by each their member

companies.

(6) The CEO of the Independent Film & Television Alliance ("IFTA") or

his/her representative.

(7) Up to two representatives designated by each of up to four

independent producers or distributors of motion pictures, each of

whom will be designated periodically by agreement of the CEO of

Classification and Rating Rules Effective July 24, 2020

the MPA and the President of NATO (provided that such

independent producer or distributor agrees in writing to submit all

of its motion pictures for rating by CARA and to release those

motion pictures for exhibition only with their CARA rating).

(8) Up to two representatives of up to four entities not affiliated with a

motion picture producer, distributor or exhibitor, designated

periodically by agreement of the CEO of the MPA and the

President of NATO, each of whom is knowledgeable about: the

standards generally applied by American parents for determining

the suitability of motion pictures for viewing by their children; and,

the appropriateness of various types of content for viewing by

children.

B. The MPA and NATO will encourage the designation of Appeals Board

members who represent the diversity of American parents and who

understand and respect the values of American parents.

C. Each member of the Appeals Board, other than the CEO of the MPA, the

President of NATO and the CEO of IFTA, will be appointed for a term of

three (3) years and may be appointed for no more than two (2)

consecutive full terms of three years each. Representatives of MPA and

NATO members will serve staggered terms, so that the term of one of its

three representatives ends each year. At the discretion of the

Chairperson of the Appeals Board, emeritus members of the Appeals

Board may serve on the appeal of individual motion pictures if the current

representatives of the MPA or NATO member they represent are not

available and their participation is necessary to meet the quorum

requirements for an appeal.

D. Each member of the Appeals Board must attend a training session at the

beginning of his or her initial term on the Appeals Board or upon

reappointment to a second term. Training sessions are administered by

MPA and NATO and will include the Chairperson of CARA. Training

sessions are designed to familiarize Appeals Board members with these

Rules and with the procedures and processes of the Rating Board and

the Appeals Board.

E. The CEO of the MPA and the President of NATO may agree periodically

to designate up to three additional organizations ("observer

organizations") whose representatives are permitted to attend appeal

proceedings. Those organizations must have a demonstrated interest in

ensuring the accurate rating of motion pictures and the fair conduct of

rating appeals.

Section 2. Responsibilities of the Appeals Board and Observers

A. The Appeals Board hears and determines appeals by motion picture

producers or distributors of ratings certified by the CARA Rating Board.

Classification and Rating Rules Effective July 24, 2020

B. No member of the Appeals Board may participate in any aspect of the

appeal of the rating of a motion picture in which the member or any legal

entity with which he or she is associated, or any affiliate of such an entity,

has any interest. If a member of the Appeals Board is or becomes aware

of any matter that could materially affect his or her independent judgment

or scrupulous adherence to these Rules with respect to a particular

appeal, the member must decline to participate in such appeal.

C. Except as permitted by these Rules, a producer or distributor appealing

the rating of a motion picture may not communicate directly or indirectly

with any member of the Appeals Board, other than the Chairperson of the

Appeals Board, about the rating or the appeal prior to the appeal hearing.

Any member of the Appeals Board who is contacted directly or indirectly

by the producer or distributor prior to the appeal hearing must advise the

Chairperson of the Appeals Board promptly of that communication. Such

a communication may be grounds for dismissal of the appeal or other

appropriate sanction, in the judgment of the Chairperson of the Appeals

Board, given the nature and extent of the violation of this rule.

D. The Appeals Board will consider whether the majority of American

parents would believe that a less restrictive rating should have been

assigned to the motion picture. Members of the Appeals Board may vote

to overturn the rating of the motion picture only if they believe that the

rating assigned by the Rating Board was clearly erroneous, meaning that

the Appeals Board member concludes that the rating assigned by the

Rating Board clearly is inconsistent with the established standards for that

rating.

E. The members of the Appeals Board and any observers must treat all

appeal proceedings as confidential and may not discuss appeal

proceedings except with the CEO or other representatives of the MPA,

the President or other representatives of NATO or other Appeals Board

members. In the event of a violation of this rule, the Chairperson of the

Appeals Board may apply appropriate sanctions to ensure the fairness

and integrity of the appeals process.

F. An appeal may not be filed which (1) the Appellant knows is frivolous or

lacks a substantial basis under these Rules; or (2) is intended to generate

publicity for the motion picture rather than to assert a legitimate dispute

with the rating assigned by the Rating Board. In the event of a violation of

this rule, the Chairperson of the Appeals Board may apply appropriate

sanctions to ensure the fairness and integrity of the appeals process.

Section 3. Procedures for Filing Appeals

A. The producer or distributor of a motion picture may appeal a rating

certified by CARA

B. An appeal from a rating certified by CARA must be instituted: 1) not more

than twenty-five business days after the date on which the rating is

certified by CARA; and, 2) not less than twenty-five business days before

Classification and Rating Rules Effective July 24, 2020

the initial public exhibition or distribution of that version of the motion

picture in the United States. The Chairperson of the Appeals Board may

grant a waiver of these deadlines only when the inability to comply with

these deadlines is due to circumstances beyond the control of the

Appellant or its agents.

C. The producer or distributor may only seek the next less restrictive rating

on an appeal.

D. Only one appeal may be taken of the rating of each version of a motion

picture and only two appeals total may be taken of the ratings of different

versions of a motion picture.

E. An appeal of a rating certified by CARA is instituted as follows:

(1) The producer or distributor taking the appeal (the "Appellant")

must send a notice of intent to appeal to the Chairperson of the

Appeals Board, addressed as follows:

Chief Executive Officer

Motion Picture Association, Inc.

c/o Counsel to CARA

15301 Ventura Boulevard Building E

Sherman Oaks, CA 91403

(2) A non-refundable check payable to the MPA must be included

with the notice of intent to appeal. The fee for an appeal is 10% of

the fee for the rating of the motion picture, but not less than $250.

(3) The notice of intent to appeal must state: (i) the name of the

motion picture; (ii) the rating assigned to the motion picture by the

Rating Board; (iii) Appellant's intent to appeal; (iv) the running time

of the rated version of the motion picture; and, (v) that the version

of the motion picture to be screened at the appeal proceeding will

be the same version that was rated by CARA.

F. Counsel to CARA will schedule the hearing on the appeal at a convenient

date not less than ten (10) business days after an appeal has been

instituted. Appeals will not be scheduled on Mondays or Fridays. For

good cause, the CEO of the MPA and the President of NATO may agree

to schedule an appeal on earlier or different dates than provided by these

Rules.

G. Appeals generally are held at an appropriate screening facility in the Los

Angeles metropolitan area. However, the Chairperson of the Appeals

Board, with the consent of the parties, may schedule an appeal to be held

at a different location or in a different manner.

H. Before the appeal proceeding, the Appellant must arrange a screening of

the motion picture for the Rating Board to confirm that the version of the

motion picture to be screened at the appeal is the version of the motion

Classification and Rating Rules Effective July 24, 2020

picture rated by the Rating Board. A representative of CARA will retain

the copy of the motion picture after the screening and deliver it the appeal

proceeding.

I. A rating appeal may be cancelled by the Appellant at any time before the

appeal hearing by sending a notice of cancellation of the appeal to the

Chairperson of the Appeals Board, addressed in the same manner as the

notice of the appeal.

J. A rating appeal must be completed not less than fourteen (14) calendar

days before the initial public exhibition or distribution of that version of the

motion picture in the United States.

K. If the rating of a motion picture is upheld by the Appeals Board, the

producer or distributor may submit a different version of the motion

picture to CARA for re-rating in accordance with these Rules.

Section 4. Conduct of Appeals

A. A quorum of the Appeals Board for an appeal is nine members, provided

that at least three members designated by MPA and its member

companies and three members designated by NATO and its members

are present. These quorum requirements may be waived upon the

written agreement of the Chairperson of the Appeals Board, the

Chairperson or other representative of CARA, and a representative of the

Appellant.

B. The Chairperson of the Appeals Board and his or her representatives,

members of the Appeals Board, representatives of designated observer

organizations, and up to two (2) representatives each of the Appellant

and of CARA may attend the appeal proceeding. All others, including

members of the press, will be excluded.

C. The Appellant may be represented at the appeal only by persons involved

in the production or distribution of the motion picture prior to the

certification of the rating for the motion picture, or the Appellant may

submit a written statement to be read during the appeal. The names of

the Appellant's representatives or its written statement must be provided

to the Chairperson of the Appeals Board not less than three (3) business

days before the appeal hearing.

D. Representatives of designated observer organizations may observe the

appeal proceeding, including the conduct of the vote by the Appeals

Board, but may not participate as a member of the Appeals Board and

may not speak or vote in the appeal proceeding.

E. No part of the appeal may be recorded or transmitted.

F. The appeal begins with the screening to the Appeals Board of the rated

version of the motion picture.

Classification and Rating Rules Effective July 24, 2020

G. The Appellant's representatives will then make a statement of the reasons

for the Appeals Board to overturn the rating of the motion picture, which

may not exceed fifteen minutes (or the Appellant's written statement will

be read to the Appeals Board if the Appellant is not represented at the

appeal).

H. The Chairperson of CARA or his or her representative will then make a

statement of the reasons for the Appeals Board to uphold the rating of the

motion picture, which may not exceed fifteen minutes.

I. The Appellant's representatives may reply to the statement by the

Chairperson of CARA or his or her representative for not more than ten

(10) minutes.

J. The Chairperson of CARA or his or her representative may reply to the

statement by the Appellant's representatives for not more than ten (10)

minutes.

K. After the parties have completed their presentations, members of the

Appeals Board may ask the parties questions. The Chairperson of the

Appeals Board will determine when to end such questioning.

L. The statements of the parties must address whether the rating assigned

to the motion picture provides an appropriate advisory to American

parents about whether the motion picture, taken as a whole, is suitable for

viewing by their children.

M. The parties' statements may not refer to: 1) the impact of the rating on the

exhibition, distribution or anticipated financial results of the motion picture;

or, 2) ratings or classifications assigned to the motion picture in other

countries.

N. The parties' statements may refer to similar content in any other motion

picture that received a CARA rating, provided that Appeals Board

members will be instructed as follows upon the occurrence of such

comparative reference to other motion pictures:

Each motion picture is unique and should be evaluated as a whole and

the content of that motion picture should be analyzed in context. While

comparisons to other motion pictures may prove helpful to evaluation of

the rating being appealed, Appeals Board members are cautioned that

such comparisons may be misleading and should therefore be

disregarded if:

• An Appeals Board member has not seen the entire referenced

motion picture, or lacks sufficient recollection of the entire motion

picture to form a judgment on its rating;

• The content of the referenced motion picture, taken as a whole,

was not comparable to the content of the motion picture on

appeal;

Classification and Rating Rules Effective July 24, 2020

• The content at issue may have occurred in a differently rated, or

unrated, version of the referenced motion picture;

• The values of a majority of American parents about the content

that is appropriate for their children may fairly be said to have

changed since the rating of the referenced motion picture; or,

• Other circumstances indicate that comparison to the other motion

picture is unreliable or misleading.

An Appellant that intends to refer in support of its appeal to content in any

other rated motion picture must advise the Chairperson of the Appeals

Board of the titles of those other motion pictures not less than three (3)

business days prior to the appeal. The Chairperson of CARA must

advise the Chairperson of the Appeals Board of the titles of any other

motion picture the Chairperson of CARA intends to refer to in support of

the rating not less than two (2) business days prior to the rating appeal.

The Chairperson of the Appeals Board will communicate those lists of

titles to the parties prior to the appeal.

O. No statements by individuals not present during the appeal may be read,

distributed or shown to the Appeals Board except as provided herein. The

Appellant must advise the Chairperson of the Appeals Board of any

material, other than the Appellant's statement in the Appellant's own

words, that will be read, distributed or shown to the Appeals Board at

least three (3) business days prior to the appeal. The Chairperson of the

Appeals Board may prohibit the use of any material during the appeal that

has not been properly identified by Appellant in accordance with this rule

or that is misleading or inconsistent with the standards for determination

of the appeal.

P. The Appellant's representatives and the Chairperson of CARA or his or

her representative may assert that any matter raised during the parties'

statements or during the question and answer period is not appropriate

for consideration by the Appeals Board. The Chairperson of the Appeal

will advise the Appeals Board whether any part of a party's statement or

any question or answer is irrelevant to the appeal or violates these Rules.

Q. At the conclusion of the question and answer session, the Chairperson of

the Appeals Board will excuse the parties from the appeal. The

Chairperson of the Appeals Board and the Appeals Board members may

then engage in a discussion of the merits of the appeal.

R. After such deliberations, a vote of the members of the Appeals Board will

be taken by secret ballot. The Appeals Board must consider whether the

majority of American parents would believe that a less restrictive rating

should have been assigned to the motion picture. Members of the

Appeals Board may vote to overturn the rating of the motion picture only if

they believe that the rating assigned by the Rating Board was clearly

erroneous, meaning that they conclude that the rating assigned by the

Rating Board clearly is inconsistent with the standards for that rating.

Classification and Rating Rules Effective July 24, 2020

S. If more than one Appeals Board member representing any single

company or organization attends an appeal, only one is eligible to vote at

that appeal. The votes will be counted by the Chairperson of the Appeals

Board and a representative of NATO or a NATO member, in the presence

of the Appeals Board.

T. The Appeals Board may overturn the rating assigned to a motion picture

by the Rating Board only upon the vote of two-thirds (2/3) or more of the

members of the Appeals Board voting at the appeal.

U. The Chairperson of the Appeals Board will announce the results of the

vote, including the vote tally, to the Appeals Board and then to the parties.

V. The Appeals Board may request the Chairperson of the Appeal to advise

the CEO of the MPA and the President of NATO that particular issues

arising in the appeal suggest the need for a more specific interpretation,

or re-interpretation, of these Rules.

W. Except as set forth above with regard to the waiver of an Appeals Board

quorum, only the Chairperson of the Appeals Board may grant exceptions

to or waivers of these Rules for the conduct of an appeal. Requests for

an exception or waiver must be made in writing, submitted to the

Chairperson of the Appeals Board at least ten (10) business days before

the appeal hearing with a statement setting forth good cause for the

waiver or exception.

ARTICLE V ADMINISTRATION OF THESE RULES

A. These Rules provide the exclusive remedy for the resolution of all

disputes in connection with the rating of a motion picture.

B. Any controversy or claim arising out of or relating to the rating of a motion

picture or the appeal of such a rating pursuant to these Rules (including

any dispute as to the validity, interpretation, enforceability or scope of

these Rules or this paragraph), that cannot be settled through direct

discussions, will be referred to mediation administered by JAMS before

resorting to arbitration. Thereafter, any such unresolved controversy or

claim (whether in contract or tort, pursuant to constitution, statute or

regulation or in equity or otherwise) will be resolved by binding arbitration

in Los Angeles, California, administered by JAMS in accordance with its

Arbitration Rules and Procedures. The parties will make a good faith

effort to select a mutually agreeable arbitrator. If the parties are unable to

reach agreement on an arbitrator, one will be selected in accordance with

the rules of JAMS. The arbitrator will apply applicable substantive law

consistent with the Federal Arbitration Act, 9 U.S.C. §§ 1-16, and not any

state law concerning arbitration. The remedy provided by this binding

arbitration provision is final and exclusive. The prevailing party in such

arbitration may file an action in court to confirm and to enforce the

arbitration award. Any such action will be instituted in a state or federal

court in Los Angeles County, California, and all parties agree, as a

condition to participation in the rating process, to submit to the personal

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jurisdiction of those courts. Should either party pursue any other judicial

or administrative action with respect to any matter included within the

scope of this binding arbitration provision, the responding party will be

entitled to recover its costs, expenses and attorneys' fees incurred as a

result of such action, regardless of the outcome of that other action.

C. Proposals to revise these Rules must be made to the CEO of the MPA

and the President of NATO. Any participant in the rating system or

member of the public may make such proposals. The CEO of the MPA

and the President of NATO may make such revisions to these Rules as

they jointly agree are appropriate and may provide guidance on the

interpretation of these Rules.

D. The CEO of the MPA and President of NATO will confer at least twice

yearly to discuss these Rules and the operation of CARA and the Appeals

Board. The CEO of the MPA or the President of NATO may invite other

MPA and NATO representatives to join those discussions. Additional

conferences may be held as necessary.