Reminder of the reimbursement regulations on the advance on receipts
1. Definition of the producer’s net receipts (Article 7.2 of the regulations):
The co-producer’s net receipts can be considered as: all the receipts which result from the exploitation of all or part of the film and of all product/material derived from the film, in the territories exclusively attributed to producers, as well as in territories other than those exclusively attributed to producers, after deduction of the «deductible costs» linked to the exploitation of the film.
All presales or distribution guarantees exceeding the necessary financing to cover the production costs approved by Eurimages, as well as the sales agreed upon after the completion of the answer print, will be considered as net receipts for the reimbursement of the support granted.
N.B. to be opposable to Eurimages, the presales or distribution guarantees must be included in the list of deductions approved by Eurimages (or failing this, for old files, in appendix IV of the support convention), before the payment of the second instalment of the support.
2. Deductible costs (Article 7.3 of the regulations):
Only the following costs will be accepted as «deductible costs» in the calculation of the net receipts:
a) the distribution commission with an upper limit fixed at 25 % (per set of rights sold in one territory), except on the national territory of the co-producing countries;
b) Provided that the costs listed below are not fully or partially included in the production budget approved by Eurimages:
· the technical costs related to the manufacture and the forwarding of release prints of the film, as well as the manufacture of the foreign language version of the work;
· costs related to publicity for the launch of the film (P& A) announced, incurred and paid by distributors and/or sales agents, and approved by each co-producer upon receipt of all items of evidence of these costs;
c) non-deductible taxes paid to the 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, of control and conservation, as far as they are directly related to the film concerned.
N.B. In order to be deductible, the costs must be justified by means of contracts made for the exploitation of the film, the distributors’ revenue statements and the invoices paid.
3. Revenue Statements of the exploitation of the work (Article 7.4 of the regulations):
The presentation of the revenue statements is demanded at the end of each six-month period for the first two years following the first commercial exploitation of the film and at the end of each calendar year following this, without prior request by the Eurimages’ Secretariat.
The presentation of the revenue statements is compulsory even if the net receipts amount to nothing for the period concerned, the obligation to present the revenue statements will end when the advance on receipts has been fully reimbursed.
These statements must clearly show all the receipts and deductible costs and attached as an annex the detailed list of the deductible costs, the list of international sales or any other explanatory document. Eurimages can ask for the standard form to be used.
N.B. Except for contrary arrangements specially foreseen in the corresponding distribution contracts, the receipts resulting from different supports or media will not be able to be cross-collateralised.
4. Reimbursement of the support (Article 7.1 of the regulations) :
The support amount is repayable from the first euro of each co-producer’s net receipts, at a rate equal to the percentage of Eurimages’ share in the financing of the film.
The percentage due to Eurimages shall be paid either by each co-producer out of his/her share of the net receipts or by the co-producer responsible for exploitation in certain territories or where applicable by his/her authorised representative, distributor or sales agent.
N.B. To be deductible, the costs must be justified by means of contracts made for the exploitation of the film, the distributors’ revenue statements and invoices paid. In the case of a group of national co-producers, one of the co-producers will be responsible for the declarations and the payments for all the co-producers of the countries concerned.
5. Failure to make a declaration or payment, or false declaration (Article 8 of the 2006 support agreements)
The total or partial assignment of the exploitation rights of the film must obtain Eurimages’ approval. Should this regulation not be respected, it will be a motive of breach of the agreement which could lead to the immediate reimbursement of the support.
Failure to make a declaration, the non-payment of the amounts due to Eurimages as well as false or incomplete declarations are motives of breach of the agreement which could lead to the immediate reimbursement of the support. They are also motives of ineligibility for new requests for support.
The payments must be made within one-month following the presentation of the revenue statements. The payments made after this deadline will lead to a 1% interest rate per calendar month or part of month.
6. Intervention by a third party (Article 7.5 of the regulations and article 8 of the 2006 support agreements)
Eurimages is authorised by the co-producers to make audits of the revenue statements either directly, or through the bias of organisations or persons designated to this end by Eurimages.
Eurimages can impose the «collection agent» and must be signatory for all contracts made with this type of company about a film having received a support.