The Guide for Application for Eurimages Support

 

1. Eurimages was established in 1989 as a cultural support fund of the Council of Europe. It currently numbers 37 member states. Armenia’s accession to the Fund took place in 2016.

2. Eurimages promotes the European audiovisual industry by providing financial support for cinema co-production, theatrical distribution, and exhibition (see www.coe.int/eurimages). Requirements for the above mentioned support schemas are set by Eurimages in the Regulations (see Appendix 1).

3. Applications (hereafter Projects) for co-production of feature-length fiction, animation and documentary films can be submitted for Eurimage support four times a year. Call for projects deadlines can be found on the Eurimages official web-site (see above). For the year 2016 the deadlines are set as follows:

a) January 15 b) April 15 c) August 25 d) October 25

4. Projects declared eligible by the Secretariat are then evaluated by the Board of Management (hereafter the Board). For the year 2016 the Board meetings are scheduled as follows:

a) March 9 – 11 b) June 21 – 25 c) October 18 – 21 d) December 13 – 15 *

* The above mentioned dates apply solely to the year 2016, deadlines for the years to come check the Eurimages official web-site.

5. The Board is composed of National Representatives of the member states appointed on the principle of equality. Susanna Harutyunyan (e-mail: aafccj@arminco.com) and Vrej Kassouny (e-mail: kassouny@reanimania.com) are Armenian National Representatives at Eurimages. 6. For the co-production support, a producer (legal person) shall submit the package of documents of the Project to the Eurimages Secretariat on-line in English or French.

7. According to the Eurimages regulations for the co-production of full-length feature, animation and documentary films under Article 2, para. 2.1.4, the project submitted besides all should have also include the national accreditation (co-production status certificate) issued by the competent national authorities. Documents required for the Project are listed in Appendix 2.

8. Apply to the National Cinema Center of Armenia NCSO (hereafter the Cinema Center) for the co-production status certificate. Applications should be made 30 days prior to the Eurimages deadlines. Application to the Cinema Center for the co-production status certificate should be made in Armenian and must comply with the requirements set by the European Convention on Cinematographic Co-production (see Appendix 3).

9. The co-production status certificate is issued by the Ministry of Culture of RA in Armenian and English within 15 days after submission of the application to the Cinema Center. The issue of the co-production status certificate can be rejected if the presented documents do not comply with the requirements set by the European Convention on Cinematographic Co-production.

10. After the receipt of the co-production status certificate and before the submission of the Project to Eurimages, the Producer can apply (not obligatory) to the Armenian National Representative/s for the expert consultation.

11. The Producer submits the Project to Eurimages within the above mentioned call for projects deadlines. The Producer must contact Armenian National Representative/s on the Board of Management of Eurimages about the Application at the earliest opportunity.

12. Projects declared eligible by the Eurimages Secretariat are then evaluated by the Board of Management, which applies the selection criteria and the point system listed in the Appendix 4.

13. After the production of the film supported by Eurimages, the Producer should present it to the Cinema Center for entering records in the Register.

Support for co-production for the feature-length fiction, animation and documentary films

Introduction

Active since 1989, Eurimages was established as a cultural support fund of the Council of Europe. It currently numbers 361 of the 47 member states of the Strasbourg-based Organisation.

Objective

Eurimages promotes the European audiovisual industry by providing financial support to feature-length fiction, animation and documentary films produced in Europe. In doing so, it encourages co-operation between professionals established in different European countries.

Budget

Eurimages has a total annual budget of €25 million. This financial envelope derives essentially from the contributions of the member states as well as returns on the loans it grants.

Board of Management

The Board of Management, under the authority of its President, defines the policy of the Fund and takes decisions on support. It meets four times a year in different European cities and is composed of representatives of its member states.

Secretariat

The Secretariat of Eurimages is responsible for implementing the decisions taken by the Board of Management. It maintains contacts with cinema professionals and has the task of assessing applications for funding as well as ensuring the follow-up of support agreements. The Secretariat is based in Strasbourg under the authority of its Executive Director.

Support schemes

Eurimages has three support schemes: cinema co-production, theatrical distribution and exhibition. The regulations in this brochure refer to the co-production support scheme. For the other support schemes, please refer to the relevant regulations.

Decision-making process

There are four calls for projects per year. The Secretariat applies the eligibility criteria contained in Article 2 of these regulations and reports to the Board of Management. Projects declared eligible by the Secretariat are then evaluated by the Board of Management, which avails itself of the artistic expertise of independent professional script readers. In taking its decisions on the support it grants, the Board of Management applies the selection criteria contained in Article 3 of these regulations.

Funding

Eurimages support takes the form of soft loans (co-production support) or subsidies (theatrical distribution and exhibition). Soft loans are repaid on the basis of revenues generated by the projects supported.

Information

Deadlines for the calls for projects, application forms and contact details can be found on: www.coe.int/eurimages.

Regulations concerning co-production support for feature-length fiction, animation and documentary films

1 Call for projects

1.1. Applications

1.1.1. Applications for financial support shall be submitted to the Executive Director of Eurimages by one of the co-producers, with the consent of all the co-producers.

1.1.2. Applications shall be submitted on-line in English or French in accordance with the instructions set out on the on-line application platform, together with all of the items detailed both on the on-line platform and in the checklist published on the Eurimages website (www.coe.int/Eurimages), and must include relevant evidence of financing. Incomplete applications or projects which do not conform to the eligibility criteria at the time when they are submitted for funding shall be declared ineligible by the Secretariat and shall be withdrawn from the agenda of the Board of Management meeting.

1.1.3. Co-producers must contact their National Representatives on the Board of Management of Eurimages at the earliest opportunity. If one of the National Representatives concerned has not been contacted prior to the meeting of the Board of Management, the project shall be withdrawn from the agenda.

1.1.4. The Executive Director may carry out any verification he or she considers appropriate as to the compliance of the project with Eurimages Regulations.

1.2. Deadlines

1.2.1. Application deadlines, fixed annually by the Board of Management, will be published on the Eurimages website: www.coe.int/Eurimages.

1.2.2. Applications must be submitted via the on-line application platform by 6 p.m. (French local time) without exception, on the day of the application deadline.

1.3. Currency and applicable exchange rates

1.3.1. The accounts of Eurimages are kept in euros, and the amount of financial support is expressed in euros.

1.3.2. In determining the equivalent in euros of the total production costs, of the contribution of each co-production partner and of the amount of financial support applied for, the only applicable exchange rate for foreign currencies into euros is that regularly set by the Finance Division of the Council of Europe and published on the Eurimages website: www.coe.int/Eurimages.

1.4. Re-submissions

1.4.1. A project can only be withdrawn once from the agenda of the Board of Management and be re-submitted once.

1.4.2. A project previously rejected by the Board of Management cannot be re-submitted.

1.4.3. It should be noted that a project withdrawn from the agenda will not automatically be placed on the agenda of the next Board of Management meeting. Any request for re-submission must be made via the on-line application platform by the delegate producer within the application deadlines mentioned under para. 1.2..

1.4.4. A project can be withdrawn from the agenda at the request of the delegate producer no later than 31 days before the meeting of the Board. A project is considered as rejected, and thus cannot be placed on a subsequent agenda of the Board of Management, if its producers decide to withdraw it after the declaration of eligibility made by the Secretariat.

2 Eligibility criteria

2.1. General provisions

2.1.1. The Executive Director will decide on the eligibility of projects based on the eligibility criteria listed hereafter.

2.1.2. Projects for feature-length fiction, animation and documentary films of a minimum length of 70 minutes, intended for cinema release, are eligible.

2.1.3. Projects submitted must be co-productions between at least two independent producers, established in different member states of the Fund.

2.1.4. Projects submitted must comply with the legislation of the countries concerned, the bilateral treaties in force between the co-producing countries or, where applicable, with the European Convention on Cinematographic Co-production. For the purposes of these regulations, the awarding of national public support will be considered, where appropriate, equivalent to national accreditation (co-production status certificate) issued by the competent national authorities.

2.1.5. Projects submitted must conform to the cultural objectives of the Fund.

2.1.6. Projects of a blatantly pornographic nature or advocating violence or openly inciting to a violation of human rights are not eligible.

2.1.7. Projects must include a digital master copy for cinema release (minimum 2K, compatible with DCI specifications or ISO norms on D-Cinema).

2.2. Eligible producers

2.2.1. Financial support may only be awarded to European natural or legal persons governed by the legislation of one of the Fund’s member states, whose principal activity consists in producing cinematographic works, and whose origins are independent of public or private broadcasting organisations or telecom companies.

2.2.2. A company is considered European if it is majority owned and continues to be majority owned, either directly or indirectly, by nationals of the member states.

2.2.3. A production company is considered independent when less than 25% of its share capital is held by a single broadcaster or less than 50% where several broadcasters are involved.

2.2.4. Producers who have previously received support from Eurimages must have met all their contractual obligations to the Fund, in particular the submission of revenue statements for any project(s) previously supported by Eurimages and the reimbursement of any outstanding amounts due.

2.3. Co-production structure

2.3.1. In the case of a multilateral co-production, the participation of the majority co-producer must not exceed 70% of the total co-production budget and the participation of each minority co-producer must not be lower than 10%. In the case of a bilateral co-production, the participation of the majority co-producer must not exceed 80% of the total coproduction budget and the participation of the minority co-producer must not be lower than 20%. Notwithstanding the above, in the case of bilateral co-productions with a budget superior to €5 million, the participation of the majority co-producer must not exceed 90% of the total co-production budget.

2.3.2. The structure of the co-production shall be attested by a duly signed co-production agreement. For the purposes of the project selection procedure, a deal memo may exceptionally be accepted provided it contains detailed provisions on the following essential aspects of the co-production:

* clear indication of the participation of each co-producer in the financing of the project;

* joint ownership of all the rights;

* sharing of the revenues between the co-producers (exclusive and/or shared territories);

* definition of the total budget, spending requirements and the event of overbudget;

* reference to the applicable treaties.

2.4. Participation of producers and financiers established in non-member states of the Fund

2.4.1. Co-producers from non-member states of the Fund may participate in the project provided that their combined co-production percentage does not exceed 30% of the total co-production budget.

2.4.2. The Executive Director may carry out any verification he or she considers appropriate in order to ensure that control of the project remains in the hands of the co-producers from the member states of the Eurimages Fund.

2.5. Technical and artistic co-operation and financial co-productions

2.5.1. Projects must display artistic and/or technical co-operation between at least two co-producers established in different member states of the Fund. This co-operation will be assessed on the basis of the nationality and/or residence of the heads of departments (director, scriptwriter, composer, director of photography, sound engineer, editor, art director, costumes) and of the main roles (first, second and third roles), as well as on the studio or shooting location, and the location of the post-production and laboratory facilities and service providers.

2.5.2. However, a co-production with an exclusively financial contribution from one or more co-producers is also eligible on condition that it has access to national accreditation in the co-producing countries.

2.6. European project

2.6.1. In the case of fiction projects, the European character will be assessed on the basis of the points system included in the European Convention on Cinematographic Co-production. These projects must achieve at least 15 out of 19 points, according to the points system set out below:

Director 3

Scriptwriter 3

Composer 1

First role 3

Second role 2

Third role 1

Cameraman 1

Sound recordist and mixer 1

Editor 1

Art director and costumes 1

Studio or shooting location 1

Post-production location 1

TOTAL 19

First, second and third roles are determined by the number of days worked.

2.6.2. In the case of animation projects, the European character will be assessed on the basis of the points system set out below. The project must achieve at least 14 out of 21 points:

Conception 1

Script 2

Character design 2

Music composition 1

Directing 2

Storyboard 2

Chief Decorator 1

Computer backgrounds 1

Layout 2

50% of the expenses for animation

in Europe 2

50% of the colouring in Europe 2

Compositing 1

Editing 1

Sound 1

TOTAL 21

2.6.3. In the case of documentary projects, the European character will be assessed on the basis of the points system set out below. The project must achieve at least 50% of the total points:

Director 3

Scriptwriter 2

Cameraman 2

Editor 2

Shooting location 2

Post-production location 2

Researcher 1

Composer 1

Sound engineer 1

2.6.4. A project that does not achieve the minimum points described in the provisions above may still be considered eligible on condition that it has access to national accreditation in accordance with the legislation in force in the co-producing countries concerned. Compliance with this requirement shall be attested by written confirmation of provisional accreditation (provisional co-production status certificate) granted by the competent national authorities.

2.7. Start of principal photography

2.7.1. Applications are eligible only if principal photography/principal animation has not commenced at the time of the Board of Management’s examination of the application and is scheduled to commence not later than six months after this date.

2.7.2.. If for unavoidable and duly justified reasons shooting/animation has already started, the project is still considered eligible if no more than half of the total shooting/animation has taken place before the time of the Board of Management’s examination of the application. In the case of documentaries, the Executive Director may consider the project still eligible if no more than 80% of the total shooting has taken place before the Board of Management’s examination of the application. Producers shall upload the necessary documentary evidence to the on-line platform at the time of the application.

2.8. Copyright regulations and joint ownership of the negative

2.8.1. Projects submitted must comply with the copyright regulations in force in the European co-producing countries, inter alia with regard to decisions concerning the final cut.

2.8.2 The negative must be jointly owned by all co-producers.

2.9. Financial requirements

2.9.1. Projects should have the benefit, in each of the co-producing countries, of either public support, or a television pre-sale, or a minimum guarantee or any other financing arrangement verifiable by and acceptable to the Executive Director (except for equity investments, deferrals and in-kind contributions).

2.9.2. At least 50% of the financing in each of the co-producing countries must be confirmed by formal undertakings or agreements in principle such as contracts, deal memos, letters of intent with amounts, confirmations of public support and bank statements. However, a bank statement cannot be the sole confirmation that the financing threshold has been met. Deferrals (including producers’ fee and overheads) and in-kind contributions shall be accepted as confirmed sources of financing only up to a maximum of 15% of the total co-production budget.

2.9.3 The Executive Director may request any further evidence he or she may consider necessary in order to assess the financial capacity of the co-producers or financiers.

2.9.4. The production budget shall clearly include the costs necessary for the completion of a digital master copy for cinema release (minimum 2K, compatible with DCI specifications or ISO norms on D-Cinema).

3 Selection of projects

3.1. Analysis by the Secretariat

The Executive Director will provide the Board of Management with a systematic and detailed analysis of each project.

3.2. Selection criteria

3.2.1. The Board of Management will select projects keeping in mind the objectives of the Fund.

3.2.2. In doing so, it will carry out a comparative analysis of the applications submitted, upon the basis of the following selection criteria:

ARTISTIC CRITERIA

Quality of the script/level of development:

* Story and theme (originality of content, subject);

* Characters and dialogue;

* Narrative structure;

* Style (director’s intention, cinematic vision, genre, tone).

Contribution of the creative team (including experience, track records):

* Director and author(s);

* Producers;

* Cast and crew.

PRODUCTION CRITERIA

* Artistic and technical co-operation;

* Circulation potential (festivals, distribution, audience);

* Financing (consistency and level of confirmed financing).

4 Nature of financial support and amounts

4.1. Production support

Financial support is provided in the form of a conditionally repayable interest-free loan (advance on receipts).

4.2. Amount of financial support

4.2.1. Financial support shall not exceed 17% of the total production cost of the film and shall in no event be superior to €500 000.

4.2.2. The budget, the financing plan and the amount of support requested from Eurimages will be assessed and verified by the Executive Director.

4.3. Allocation of financial support

4.3.1. The financial support shall be allocated to each co-producer according to the proportion of his or her financial participation in the co-production.

4.3.2. Eurimages financial support may be allocated disproportionately, except in the case of financial co-productions.

Such disproportionate allocation to one of the co-producers shall not be lower than 10% nor exceed 50% of the total amount allocated by Eurimages to the co-production concerned. In such cases, the Eurimages contribution shall not exceed 50% of the total financing of any of the co-producers. Nevertheless, the repayment of the amount awarded will be in proportion to each producer’s percentage in the co-production.

4.4. Validity of the support decision

The validity of any decision to support the co-production of a cinematographic work will expire if no agreement between Eurimages and the co-producers has been entered into within a period of twelve months from the date of the Board of Management meeting at which the decision was taken and if principal photography has not commenced within the same period. For duly justified reasons, the Executive Director may extend such a period by a maximum of six months.

5 Support agreement and payments

5.1. Conclusion of the support agreement

5.1.1. An agreement between the co-producers involved and the Executive Director, acting on behalf of Eurimages, shall stipulate the terms on which the support is awarded.

5.1.2. The support agreement shall be drawn up on receipt of the following documents:

* definitive co-production contract(s) plus any addenda thereto;

* revised financing plan including the actual amount of the support allocated by the Board of Management;

* confirmation of artistic and/or technical co-operation;

* confirmation of the attribution of provisional national accreditation;

* contracts or firm undertakings confirming the financing of the project;

* chain of title documents;

* any other document proving that the conditions precedent set by the Board of Management have been met.

5.1.3. The Executive Director may, at his or her own discretion, terminate the support agreement 10 years after the first commercial exploitation of the film.

5.2. Payment of financial support

Unless otherwise agreed by the Executive Director of Eurimages, payment will be made in three instalments:

5.2.1. The first instalment of 60% of the total amount awarded is payable following:

* the signature of the support agreement as defined in Article 5.1 above;

* the first day of principal photography;

* if appropriate, after signature of the collection account management agreement.

5.2.2. The second instalment of 20% of the total amount awarded is payable:

* after confirmation of completion of the digital answer print from the laboratory (minimum 2K, compatible with DCI specifications or ISO norms on D-Cinema);

* after receipt of distribution guarantees and/or pre-sales upon which binding agreements have been concluded before the answer print of the film has been completed;

* after approval of the credit list by the Executive Director.

5.2.3. The third instalment of 20% of the total amount awarded is payable:

* after confirmation of cinema release in the co-producing countries or, if appropriate (documentaries only), selection in at least one significant film festival;

* after receipt and approval by Eurimages of the total final costs of the production and the expenditure of each co-producer, presented in a standard form approved by Eurimages and certified by a qualified chartered accountant independent from the production companies involved, showing any variations in the costs compared with the budget approved by the Board of Management;

* after receipt of the final financing plan;

* after receipt of the evidence of the payment of the minimum guarantees included in the financing plan and the list of deductions approved by Eurimages. Minimum guarantees paid in cash shall not be accepted;

* after receipt and approval by Eurimages of the publicity material for each co-producing country and receipt of 50 copies of the DVD with English and, if possible, French subtitles, or with a sound track in English;

* after confirmation of attribution of definitive national accreditation.

5.3. Production bank account(s)

Payment of the co-producers’ share of the amount awarded shall be made by Eurimages either to the respective production bank accounts opened by each co-producer, or to a single production bank account opened by the delegate co-producer, on condition that written consent is received from each of the co-producers concerned.

5.4. Completion guarantee

Should the co-producers conclude a completion guarantee, Eurimages must be a signatory to the contract and have the status of beneficiary.

6 References to Eurimages’ Support

6.1. Eurimages’ support must be mentioned clearly and visibly in the main credits at the beginning of the film, as high as possible after the producers and in accordance with its financial contribution, as well as in major publicity material for the film.

6.2. The draft front and end credits must be submitted to Eurimages for prior approval. Failing this, Eurimages reserves the right to refuse payment of the outstanding balance of the support awarded.

7 Repayment of the support

7.1. Eurimages recoupment corridor

7.1.1. The support amount is repayable, from the first euro, from each producer’s net receipts at a rate equal to the percentage of the Eurimages share in the financing of the film, and after deduction – if formally approved by the Secretariat – of distribution guarantees and/or pre-sales necessary for the financing of the film upon which binding agreements have been concluded before completion of the answer print. Where part of the distribution minimum guarantees are financed by “Sofica” and/or other financial institutions (e.g. gap financing), these sums shall not be recouped before Eurimages. Any other deductions or comparable financing arrangements are to be approved by the Board of Management.

7.1.2. Each co-producer shall be proportionally responsible for repayment of the share of the support allocated to him or her. Repayment is due up to 100% of the amount awarded. In the case of disproportionate allocation of Eurimages support (according to the conditions under Article 4.3.2. above), the repayment of the support awarded will be in proportion to the co-production percentages.

7.1.3 When there is a group of national co-producers (i.e. co-producers within the same member state), one co-producer responsible for reporting obligations and repayment of the sums due by the whole group shall be appointed. Failing this, Eurimages will appoint one.

7.2. Producers’ net receipts

7.2.1. The following are considered as producers’ net receipts: all receipts resulting from exploitation of all or part of the film and from any products derived from the film in the territories exclusively allocated to the producers, as well as in the territories other than those exclusively allocated to the producers, after deduction of “deductible costs” linked to the exploitation of the film (as defined in Article 7.3.1. below). These net receipts shall constitute the basis for the reimbursement of the support.

7.2.2. Any pre-sales and distribution guarantees in excess of the financing necessary to cover the production cost approved by Eurimages as well as those concluded after completion of the answer print are considered as net receipts for the purpose of repayment to Eurimages. The Executive Director must have received valid documentation before payment of the second instalment of the support (see Article 5.2.2. above).

7.2.3. Should the producers and/or distributors be beneficiaries of any form of support covering a part or the totality of the distribution costs, this must be clearly indicated in the revenue statements.

7.3. Deductible amounts

All deductions must be approved by the Executive Director.

7.3.1. The only “deductible costs” accepted by Eurimages for the calculation of net receipts are:

a) the distribution commission of up to 25% (per set of rights sold in one territory), except in domestic co-producing countries, and with the exception of the case mentioned in Article 7.3.4.;

b) provided that the costs listed below are not already fully or partially included in the production budget approved by Eurimages:

* technical costs related to the manufacture and the forwarding of release prints of the film, as well as the manufacture of a foreign language version of the work;

* costs related to publicity for the launch of the film (P&A) announced, incurred and paid by the distributors and/or sales agents, and approved by each producer upon receipt of all items of evidence of these costs.

c) non-deductible taxes paid to public authorities for the exploitation of the film;

d) customs duties and fees to professional organisations, costs related to submission of the film to censure, control and archive bodies, insofar as they are directly related to the film concerned.

Therefore, deferrals, equity investments, royalties, profit participations and authors’ rights cannot be deducted from the revenues generated.

7.3.2. All such “deductible costs” should be duly specified in the financial statements provided by the distributors and/or sales agents and shall be subject to verification.

7.3.3. In the event that the distribution costs are directly borne by the producers and such costs are not already included in the financial statements provided by the distributors and/ or sales agents, Eurimages may accept the deduction of such costs as follows:

a) Should the producer decide to distribute the film himself, the corresponding costs shall be deducted in the same manner as indicated in Article 7.3.1., provided that these costs are certified by an independent chartered accountant who confirms that such costs are directly related to the film in question, were established using project-based accounting, and were not included in the production budget. The deduction of a distribution commission is acceptable provided that it is within the percentage limits generally accepted in the territory in question and for the relevant rights.

b) Should the producer appoint a distribution company which does not bear all the distribution costs, the share of the costs borne by the producer himself shall be deducted in the same manner as indicated in Article 7.3. provided that (i) the distribution company certifies in writing that it has not borne the distribution costs deducted by the producer, and (ii) the distribution costs deducted by the producer are certified by an independent chartered accountant who confirms that these are directly related to the film in question, were established using project-based accounting and were not included in the production budget.

7.3.4. A sales agent’s fee superior to 25% can be accepted on condition that:

* the fee includes the technical and publicity costs listed in Articles 7.3.1. to 7.3.3. No other deduction from gross receipts will in this case be accepted by Eurimages;

and

* the fee is not superior to 50% of gross receipts.

7.4. Revenue statements

7.4.1. Starting from the first commercial exploitation of the project, co-producers shall, without prior request, provide Eurimages with revenue statements concerning the exploitation of the film at the end of each half-year period for the first two years and at the end of each calendar year thereafter. These statements shall be presented in a clear and detailed format, showing the exploitation results of the film for each type of media, clearly indicating the “deductible costs”, and shall include a copy of the royalty statements from distributors and sales agents, as well as a copy of all sales and licence agreements. Eurimages reserves the right, if necessary, to request producers to use a standard form approved by Eurimages for the presentation of revenue statements.

7.4.2. Each co-producer is obliged to provide Eurimages with a copy of all contracts for the exploitation of the film or any part thereof.

7.5. Collection account

For projects with a budget of €3 million or more, the setting up of a collection account by a collection agency shall be obligatory. For projects with a budget of less than €3 million, Eurimages reserves the right to demand the setting up of a collection account by a collection agency. In all cases, Eurimages must be a signatory to the subsequent agreement.

8 Modification of the support granted and termination of the support agreement

8.1. Evolution of the co-production

8.1.1. Co-producers must request the prior approval of the Executive Director, and provide adequate documentation, concerning any modification to the artistic, technical, legal or financial aspects of the project as approved by the Board of Management.

8.1.2. Any substantial modification of the artistic or financial structure of the project must be approved by the Board of Management. Any other changes shall be approved by the Executive Director.

8.1.3. Without prejudice to the above provisions, a change of director shall automatically entail the cancellation of the Eurimages financial support to the project, provided that shooting has not yet started. Producers are entitled to submit a new application for support at the following calls for projects.

8.2. Decrease in final production costs

Should the final production costs of the film be more than 10% lower than the budget described in the support agreement between Eurimages and the producers, the support granted by Eurimages will be reduced proportionally to the decrease exceeding 10%.

8.3. Cancellation of financial support

8.3.1. Eurimages’ financial support shall be cancelled or immediately repayable if a producer fails to meet the terms of these Regulations or the obligations contained in the terms of the support agreement.

8.3.2. Eurimages may exceptionally and for duly justified reasons derogate from Article 8.3.1..

8.3.3. If, within one year from the first theatrical release in any of the co-producing countries, the second and/or the last instalment(s) of the support has/have not be disbursed, the Executive Director will, in consultation with the authorities of the co-producing countries, cancel any outstanding amount.

8.4. Theatrical release

Eurimages financial support shall be cancelled if the film is not completed or theatrically exhibited in each of the co-producing countries within the time limit set in the support agreement. After consulting the competent authorities of the co-producing countries and taking into account the particular characteristics of the film in question, the Executive Director may derogate from the obligation to release the film theatrically in minority co-producing countries where evidence of another acceptable form of presentation to the public can be provided.

9 Dispute settlement and interpretation of the Regulations

9.1. There can be no appeal against a decision of the Board of Management not to support a request for financial support.

9.2. Any dispute relating to the execution of any agreement concluded pursuant to these Regulations shall be submitted, failing a friendly settlement between the parties, for decision to an Arbitration Board composed of two arbitrators, each selected by one of the parties, and a presiding arbitrator, appointed by the other two arbitrators. If a presiding arbitror is not appointed under the above conditions within a period of six months, the President of the Tribunal de Grande Instance of Strasbourg shall make the appointment.

9.3. However, the parties may submit the dispute for a decision to a single arbitrator chosen by them by common agreement or, failing such agreement, by the President of the Tribunal de Grande Instance of Strasbourg.

9.4. The Board referred to in paragraph 9.2. or, if appropriate, the arbitrator referred to in paragraph 9.3., shall determine the procedure to be followed.

9.5. Failing agreement between the parties on the law applicable, the Board, or if appropriate, the arbitrator, shall decide ex aequo et bono having regard to the principles of law, as well as observing customs used in the cinematographic and audio-visual field.

9.6. The arbitration decision shall be final and shall be binding on the parties.

9.7. The Board of Management reserves the right to interpret and amend these Regulations.

Distribution Support Programme

Support for “marketing and publicity costs” for eligible films destined for distributors selected by Eurimages

Introduction

The aim of the distribution support programme is to reinforce the distribution of European2 films as defined in the regulations and to increase their audiences.

It is destined for distributors whose head office is in one of the Eurimages member States which do not have access to the Creative Europe-MEDIA programme of the European Union3. However, it is also available to distribution companies whose head office is in one of the Fund’s other member States for the distribution of films produced or co-produced by one or more producers from countries who do not have access to the Creative Europe-MEDIA programme.

Distributors’ eligibility

Article 1: A distributor is defined as a natural or legal person operating under the legislation of one of the Fund’s member States whose principal activity consists of distributing cinematographic or audiovisual works and who is wholly independent of any public or private broadcasting organisation.

Article 2: A distributor who meets the following requirements is eligible for financial support:

2.1 whose head office is in one of the Fund’s member States which does not have access to the Creative Europe-MEDIA distribution support mechanisms, i.e. Armenia, Georgia, Russian Federation, Switzerland, Turkey, or in the case of a natural person (sole trader), is a national of one of these countries; or

2.2 whose head office is in one of the Fund’s member States which has access to the Creative Europe-MEDIA distribution mechanisms and wishes to distribute a film produced or co-produced by one or more producers from the member States listed in article 2.1 above; or, in the case of a natural person (sole trader), is a national of one of these countries and wishes to distribute a film produced or co-produced by one or more producers from one of the member States listed in article 2.1 above;

2.3 has fulfilled its obligations to Eurimages for films previously supported by Eurimages;

2.4 wishes to distribute films which do not originate from the country in which the distributor has his head office or in the case of a natural person (sole trader), which also excludes co-productions involving a producer originating from the country where the distributor has his head office.

Film eligibility

Article 3: a full-length feature film, animation or a documentary (minimum duration: 70 minutes), is eligible for support if it:

3.1 is projected on digital cinema projection in conformity with DCI standards (Digital Cinema Initiative) or on 35 mm support;

3.2 is produced either by one single producer from a Eurimages member State or with more than 50% by co-producers from Eurimages member States for films distributed in Georgia, the Russian Federation, Switzerland or Turkey. Where a film is distributed in other member States of the Fund, it has to be produced by either one single producer who is a national of one the four countries above, or, in the case of a co-production, by several producers, at least one of which is a national of one of the four countries mentioned above;

 3.3 is released on one copy or more for Georgia, and on a minimum of 10 copies for the Russian Federation, Switzerland, Turkey, and must be released on at least 2 copies for those countries mentioned in article 2.2 above.

 3.4 if the film is released in DCP, the number of copies means the number of simultaneous digital screenings.

 3.5 has not yet been released in the territory covered by the application;

 3.6 is released in the country of origin not more than five years before the date of the request for distribution support;

 3.7 will be released in at least one of the official languages of the territory for which support is being requested during the calendar year of the application.

 Article 4: Films of a blatantly pornographic nature or those that advocate violence or openly incite the violation of human rights cannot be granted support from Eurimages.

 Article 5: Co-productions supported by Eurimages, in which the distributor is involved in the financing, are excluded from receiving support from Eurimages.

 Submission of applications for selection and support

 Article 6: Applications must be submitted to the Eurimages Secretariat on the corresponding official application form available on the internet site www.coe.int/eurimages:

* Distribution support – Marketing and publicity costs – Distributors request for support: ”Form A” * Distribution support – Marketing and publicity costs – Request for payment of support: “Form B”

 Article 7: Application deadlines, fixed annually by the Board of Management, are published in the major European trade journals and on the Eurimages web-site.

 Article 8: Applications must be received by the Eurimages Secretariat no later than 6pm on the deadline date: the date of receipt is valid.

 Article 9: Applications, prepared in accordance with these regulations should be completed upon receipt or they may be rendered inadmissible. If necessary, the Secretariat may ask for clarifications and/or complementary documentation.

Distributor’s application for selection

 Article 10: Applications for selection are presented once a year, for the deadline corresponding to the second call for projects. For the year 2016, this date corresponds to 15 April.

Article 11: The application form must include, or be accompanied by, the following information/documentation:

* distributor extract from the Register of Commerce;

* distributors CV and/or those of the company directors;

* the catalogue of films distributed during the previous 2 years, completing the table appended to the application form;

* a distribution strategy profile for current year, mentioning co-operation agreements with the exhibitors, and with sub-distributors for releases in multiple territories;

* the list of films released during the first trimester of the application year, for which the distributor intends to request support, as well as the corresponding marketing and publicity costs (table appended to the application form);

* an estimation of the number of films eligible for support for which the distributor intends releasing during the remainder of the year, as well as the marketing and publicity costs incurred for these films.

Request for payment of support

Article 12: The request for payment of support may be presented at the corresponding deadline for each call for projects.

Article 13: Requests for payment must be made using the appropriate form, and for each of the films

concerned, accompanied by the following:

* a copy of the acquisition agreement for the exploitation rights;

* documented proof of the theatrical release (posters, press cuttings…);

* an indication (nature and amount in national currency and euros) of the marketing and publicity costs incurred;

* a copy of paid invoices corresponding to the costs.

Consideration of applications

Article 14: The Secretariat will check the distributor’s eligibility and include the request on the agenda of the meeting of the Fund’s Board of Management.

Article 15: During the meeting of the second call for projects, the Board of Management will decide on the distributor’s selection for the calendar year.

Selection of distributors

Article 16: Distributors will be deemed eligible for support, according to their profile and their experience. They must meet the usual standards of professionalism, as demonstrated by their company CV, amongst other things.

Article 17: The distributor must have a theatrical distribution strategy and, where possible, a multi-platform release strategy, adapted to the situation in his/her country. Furthermore, they should have co-operation agreements with exhibitors and, preferably, with the exhibitors of the Eurimages theatrical network.

Article 18: The presentation of a varied catalogue of films from different member states of the Fund and/or co-productions financed by Eurimages (films released during the two years preceding the application), is an added advantage for being eligible for support.

Article 19: A coordinated distribution marketing campaign in multiple territories is an added advantage for being eligible for support.

Determining the “right to support”

Article 20: The Board will decide on the number of films it intends to support for each of the selected distributors, taking into account the number of eligible films each distributor intends to release during the year, the corresponding estimated marketing and publicity costs, as well as the financial envelope available for the programme. Following this decision, a final agreement will be drawn up defining, for each of the distributors selected, his “right to support” for a certain number of eligible films.

Payment of support

Article 21: At the end of each call for projects, distributors will send to the Secretariat, in conformity with the requirements laid down in Article 13, requests for payment of support for the films they released during the previous trimester. The first request for payment of support should be presented for the deadline of the 3rd call for projects, by the distributors who were selected during the June Board of Management meeting, and this request will be relative to films released during the period 1 January to 30 June (inclusive) of the same year.

Article 22: The Secretariat will verify the eligibility of the films distributed, including items of evidence proving their theatrical release as well as checking the eligibility of marketing and publicity costs presented by the distributor, and proof of actual expenditure.

Article 23: For each of the Eurimages Board of Management meetings, the Secretariat will establish a resume of the amount owing to each distributor, for eligible projects, within their “right to support” as defined in the support agreement.

Article 24: Payment for support will be made by the Secretariat after approval of the sum by the Eurimages Board of Management.

Renewal of the support agreement

Article 25: A distributor wishing to renew his agreement should send the Secretariat, before the deadline of the second call for projects, a request for renewal accompanied by:

* a catalogue of films distributed during the previous 2 years completing the information requested in the table appended to the application form;

* a distribution strategy profile for the current year, mentioning co-operation agreements with exhibitors;

* the list of films released during the first trimester of the application year, for which the distributor intends to request support, as well as the corresponding marketing and publicity costs (table appended to the application form);

* an estimation of the number of films eligible for support for which the distributor intends releasing during the remainder of the year, as well as the marketing and publicity costs incurred for these films.

Amount and nature of support

Article 26: maximum amount of support:

* 70% of marketing and publicity costs incurred by the film, up to a limit of €10 000 per film, for all eligible films distributed in Georgia, or all films originating from Georgia released in another of the Fund’s member States;

* 50% of marketing and publicity costs incurred by the film, up to a limit of €10.000 per film for all eligible films distributed in the Russian Federation, Switzerland or Turkey, or all films originating from one of these countries released in another of the Fund’s member States;

* a supplementary bonus of €1 000 may be paid for films having received Eurimages’ support for co-production.

Article 27: Financial support is awarded in the form of a grant and paid in one single payment per film.

Eligible costs Article 28: Only marketing and publicity costs incurred by the release of the film are eligible. These include the following (non-exhaustive list):

28.1 Communication:

* mailings,

* publicist/press officer,

* premieres and events.

28.2 Advertising and publications:

* graphic design for posters, press book and advertising,

* printing costs,

* creation and adaptation of a local web site for the film,

* creation and implementation of a campaign through social media,

* booking fee for advertising space (posters, radio, TV spots),

* radio and TV spots.

28.3 Travel costs:

* Director’s travel and accommodation (including a local promotional tour),

* Main actors’ travel and accommodation (including a local promotional tour).

Article 29: the Secretariat reserves the right to assess the eligibility of costs presented and to request complementary information and/or items of evidence.

Distributor’s obligations

Article 30: The distributor must release the film as indicated in the application form; any substantive changes in the distribution arrangements are subject to written approval by the Executive Director of

Eurimages.

Article 31: The distributor must refer to Eurimages support on publicity material used to promote his/her company (website, press releases, etc.).

Article 32: The distributor must keep analytic accounts for each film, in such a way that expenses financed by Eurimages’ support may be verified through an external audit. He must provide, if necessary and in a timely manner, any information or accounting records that may be requested as proof of costs financed by Eurimages.

Article 33: The distributor authorises Eurimages, at any time, to proceed with or to instigate an audit of the accounts to verify the correct use of the support granted, the accuracy of information provided at each stage of the support process, respect of the regulations and obligations of the support agreement.

Termination of the support agreement

Article 34: The grant shall be cancelled and any sums already paid shall become immediately repayable if the distributor:

* fails to meet his/her obligations under these regulations or any other obligations upon him/her under the terms of the agreement;

* has made false or misleading statements in his/her application or other relevant correspondence;

* becomes bankrupt or insolvent.

Support for Theatres

I – INTRODUCTION

Active since 1989, Eurimages was set up as a cultural support fund of the Council of Europe. It currently numbers 374 of the 47 member states of the Strasbourg-based organisation.

Objective

Eurimages promotes the European audiovisual industry by providing financial support to feature films, animations and documentaries produced in Europe. In doing so, it encourages co-operation between professionals from different European countries.

Budget

Eurimages has a total annual budget of €25 million. This financial appropriation derives essentially from the contributions of the member states and from reimbursement of the support.

Board of Management

The Board of Management, under the authority of its President, defines the policy of the Fund and takes decisions on support. It meets four times a year in different European cities and is composed of representatives of the Fund’s member states.

Secretariat

The Eurimages Secretariat is responsible for implementing the decisions taken by the Board of Management. It maintains contact with cinema professionals and has the task of assessing applications for funding as well as ensuring the follow-up of support agreements. The Secretariat is based in Strasbourg under the authority of its Executive Director.

Support schemes

Eurimages has four support schemes: cinema co-production, distribution, exhibition and promotion. The regulations in this brochure refer to the exhibition support scheme. For the other support schemes, please refer to the other relevant regulations.

Funding

The support granted by Eurimages for exhibition takes the form of a subsidy.

Information

The procedure for submission of an application and contact details can be found on the website www.coe.int/eurimages.

Support for theatres

The technical management of the support programme for theatres has been entrusted to Europa Cinemas so as to ensure complementarity with the theatre support programme run under the Creative Europe MEDIA programme. Only theatres located in Eurimages member states that do not have access to support under the Creative Europe MEDIA programme are eligible for the Eurimages programme of support for theatres.5

Theatres financed by Eurimages belong to the Europa Cinemas network, which enables the exhibitor to benefit from the joint co-ordination, information and communication measures implemented by Europa Cinemas. These activities are co-financed by the exhibitors, who pay Europa Cinemas 5% (five per cent) of the amount of support granted to the theatre.

Objectives

The objectives of the theatre support programme are the following:

* to increase the programming in theatres and raise attendance for European films, with priority being given to non-national and Eurimages films. The term “Eurimages films” designates films which have been granted co-production support by Eurimages;

* to foster diversity in the screening of European films and to support theatres’ efforts to enhance the programming and promotion of European films;

* to develop a Europe-wide network of theatres, allowing joint initiatives, both between exhibitors and distributors and with other European organisations that support theatres.II – Regulations concerning support for theatres

1. Eligibility

Theatres located in Eurimages member states that do not have access to the Creative Europe MEDIA programme are eligible.6 A “theatre” designates an establishment run by an exhibitor, whether it has one or several screens.

Theatres must guarantee good projection conditions and audience comfort and be situated in national or regional capitals, university cities or other key cities or towns for cinematographic distribution.7

To be eligible, theatres must also satisfy the following criteria:

* commercial theatres8 that have been open to the public for at least 6 months and operate with a box office/ticketing system and declaration of receipts,

* minimum number of screenings: 520 per year,

* minimum number of seats: 70,

* minimum admissions over 12 months: 20,000,

* technical equipment meeting professional standards,

* safety conditions complying with national law,

* pornographic theatres excluded.

The Eurimages Board of Management may nonetheless approve exceptions to the above criteria for single-screen theatres operating in specific exploitation circumstances.

2. Support access threshold

The theatre (excluding multiplex) must ensure that its screenings include a minimum percentage of European screenings:

* at least 50% of the total screenings should be European screenings;

* at least 25% of the total screenings should be non-national European screenings;

* at least 10% of the total screenings should be screenings of Eurimages films.

Further to these 3 conditions, the screenings of European and Eurimages films should be spread out in an equitable manner throughout the year.

The multiplex (8 screens or more) must ensure that its screenings include a minimum percentage of European screenings:

* at least 45% of the total screenings should be European screenings;

* at least 18% of the total screenings should be non-national European screenings;

* at least 5% of the total screenings should be screenings of Eurimages films.

Further to these 3 conditions, the screenings of European and Eurimages films should be spread out in an equitable manner throughout the year.

Where, for two consecutive years, a selected theatre is no longer able to achieve the required programming percentages, the Eurimages Board of Management may decide to withdraw the support and the award of the Eurimages/Europa Cinemas label.

3. Commitments of theatre exhibitors

The theatre exhibitors undertake to:

* annually provide Europa Cinemas, by 15 January at the latest, with the information requested in the programming report for the last year (for all films: title, director, nationality of the film or Eurimages film, date of national release, date of release in the theatre, number of screenings, total admissions and box office). This information must be entered in the Member Zone of the Europa Cinemas Internet site;

* gradually introduce measures to promote and publicise European films;

* promote the European quality label on any publicity material issued during the term of this support contract by adding the following words “with the support of the Eurimages Fund of the Council of Europe” and the systematic screening of the trailer of Europa Cinemas;

* send Europa Cinemas the required documentary proof of programming and results.

4. Definition of European films

“European films” are defined as full-length features, documentary or animation films, produced or majority co-produced by one or more companies having its head office in a Eurimages member state. Films must have been recognised as national films by the European production countries.

Advertising films, those of a pornographic or racist nature and films advocating violence are excluded.

5. Amount and conditions of financial support

A contract between the exhibitor and the Executive Director, acting on behalf of Eurimages, sets out the conditions for awarding the support. It is concluded for a period of one year and is renewable.

The amount of the support is decided by the Eurimages Board of Management; if the theatre meets the programming requirements set out in the contract, Eurimages will contribute € 1 (one euro) maximum per non-national European admission in the theatre, including admissions to national films made as European co-productions, subject to an annual maximum amount of € 15 000 (fifteen thousand euros). However, the Eurimages Board of Management may decide to award a bonus for the programming of Eurimages films, according to criteria to be defined in the annual contract and subject to an annual maximum amount of € 5 000 (five thousand euros).

The support is payable in a single instalment after the Eurimages Board of Management has examined and approved the theatre’s programming schedule and the corresponding report drawn up by Europa Cinemas. Approval is in principle given at the first Board meeting held in the course of the year. The amount of support paid to the exhibitor will be reduced by the share (5%) payable by Eurimages to Europa Cinemas for the implementation of joint initiatives via the Europa Cinemas network.

If the theatre changes exploitation company during the course of the accounting period, the support will be paid to the company managing the theatre at the time of the Board of Management’s decision awarding the amount of the support, provided the managing company is willing to sign a new contract with Eurimages and undertakes to comply with the conditions as provided for in the contract concluded with the former exhibitor.

6. Procedure

The registration of application files must be completed online by following the steps below:

6.1. Transmission of the following information by electronic mail to mricha@europa-cinemas.org :

ON THE THEATRE

– Name of the theatre

– Number of screens

– Country

– City

– Telephone number

– E-mail

ON THE EXHIBITION COMPANY/OR INDIVIDUAL EXHIBITOR

– Name of the company

– Corporate status of the company

– Country

– City

– Surname and first name of the legal representative of the company

– Telephone numbers

– E-mail

– Surname and first name of the director of the theatre

– Surname and first name of the person in charge of programming

6.2. Upon receipt of this message, Europa Cinemas will send you a log-in identification and password which will allow you to enter, via the Member Zone of Europa Cinemas, all the necessary information concerning the theatre and its whole programming during the previous year of your application.

6.3. Eurimages will be informed of your application upon validation on your part of the above information and will transmit an acknowledgment of receipt.

6.4. Once your application is validated, you should send to Europa Cinemas at 54, rue Beaubourg, 75003 PARIS :

* the downloaded identification sheet, signed by the legal representative of the company,

* the list of initiatives towards young audiences,

* a certificate of receipts declared to the distributors,

* copies of publications issued by the theatre,

* photos of the theatre (if they cannot be uploaded to the Member Zone).

After the applications have been received by Europa Cinemas, on the basis of a programme of visits organised by the relevant country’s representative on the Board of Management, members of the “Theatres” Working Group and a representative of Europa Cinemas will make an initial selection from among the theatres which have been visited. The final decision lies with the Board of Management, which takes account of their proposals.

7. Deadline

For theatres new to the network, the deadline for receipt of applications is 30 June at 6pm of each year, at the latest, for financial support for the following year.

For theatres already belonging to the network, the Board of Management will verify, in principle at the first meeting of the year, the conditions for maintaining the theatre in the network. The exhibitor will be informed of the decision within 30 days following the Board’s meeting, and it will take effect as of 1 January of the current year.

Your attention is drawn to the fact that any applications that are incomplete or that have been received after the deadline (30 June at 6pm) will be refused.

APPENDIX 2

The list of documents required for application for the Eurimages co-production support.

1. A synopsis of the film (maximum 3 pages), in English AND French

2. The director’s comprehensive comments (on the style, structure and visual presentation of the film), in English AND French

3. The producer’s note, in English AND French

4. a – The script of the film, in English OR French

4. b – visual items or graphics storyboard (for animation films), in English OR French

5. A summary budget in Euros, in English OR French

6. A detailed budget in Euros and in the delegate producer’s national currency, in Original version AND English OR French

7. A copy of the co-production agreement(s) or deal memo(s) between the co-producers, in Original version AND English OR French

8. Evidence of financing

9. Revenue statements, in English OR French

10. The co-production certificate in line with the requirements of the European Convention of Cinematographic Co-production.

Link to the original document: www.coe.int/t/dg4/eurimages/Source/Forms/Coproduction/ListDocumentsToBeProvided2016_en.pdf

APPENDIX 3

The list of documents required by the European Convention on Cinematographic Co-production for the co-production status certificate (to be submitted to the national authorities.)

 – a copy of the contract for the purchase of the copyright or any other proof of purchase of

the copyright for the commercial exploitation of the work;

– a detailed script;

– a list of the technical and artistic contributions from each of the countries involved;

– an estimate and a detailed financing plan;

– a production schedule of the cinematographic work;

– the co-production contract made between the co-producers. This contract must include

clauses providing for the distribution of receipts or territories between the co-producers.

Link to the original document: https://rm.coe.int/CoERMPublicCommonSearchServices/DisplayDCTMContent?documentId=090000168007bd2b

APPENDIX 4

The Eurimages Board evaluates projects according to the “European character” point-based system of the European Convention on Cinematographic Co-production

The fiction projects must achieve at least 15 out of 19 points, according to the points system set out below:

Director 3

Scriptwriter 3

Composer 1

First role 3

Second role 2

Third role 1

Cameraman 1

Sound recordist and mixer 1

Editor 1

Art director and costumes 1

Studio or shooting location 1

Post-production location 1

TOTAL 19

(First, second and third roles are determined by the number of days worked.)

The animation projects must achieve at least 14 out of 21 points, on the basis of the points system set out below.

Conception 1

Script 2

Character design 2

Music composition 1

Directing 2

Storyboard 2

Chief Decorator 1

Computer backgrounds 1

Layout 2

50% of the expenses for animation

in Europe 2

50% of the colouring in Europe 2

Compositing 1

Editing 1

Sound 1

TOTAL 21

The documentary projects must achieve at least 50% of the total points, on the basis of the points system set out below.

Director 3

Scriptwriter 2

Cameraman 2

Editor 2

Shooting location 2

Post-production location 2

Researcher 1

Composer 1

Sound engineer 1

Link to the original document: https://rm.coe.int/CoERMPublicCommonSearchServices/DisplayDCTMContent?documentId=09000016800