SELECTIVE SCHEME. F.A.Q. - Frequently Asked Questions ROUND 1 & ROUND 2

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DISTRIBUTION SELECTIVE SCHEME SELECTED PROJECTS MONITORING F.A.Q. - Frequently Asked Questions ROUND 1 & ROUND 2 These FAQ's apply to the Call for Proposals and rounds as indicated above. Please check that you refer to the correct Call for Proposals and use the respective forms. *To check the Call for Proposals: The Call for Proposals under which your Grant Decision/Grant Agreement has been issued is mentioned on the 1 st page of your Grant Decision /Grant Agreement. IMPORTANT: In the Selective Scheme, we are not only issuing Grant Agreements but also Grant Decisions. Grant Decisions are issued to beneficiaries in all member states of the EU and are only signed by EACEA. Grant Agreements are concluded with beneficiaries in other eligible countries and are signed by both parties. In these FAQ's, you will see references to both Grant Decisions and Grant Agreements. *To check the Round: Grant Decision/Grant Agreement nº: 2018-2851 / 001 001 387468-CREA-1-2018-1-NL-MED-DISTSEL (stated on 1 st page of your Grant Decision/Grant Agreement) Round *To check if it is a single or a consolidated Grant Decision/Grant Agreement: If it is a single Grant Decision/Grant Agreement, the action will have the title of the awarded project/film (1 st page of your Grant Decision/Grant Agreement). In the case of multiple small awards for a single beneficiary, we consolidate the grant into a unique action. In this case, the title of the action will be "Package nº ", and the list of awarded projects/films will be enclosed with the Grant Decision/Grant Agreement (Annex I). All reporting for this call will be done by e-form. For information on how to proceed, please refer to the beneficiaries' space on the Creative Europe website and follow the instructions: http://eacea.ec.europa.eu/creative-europe/beneficiaries-space/distributionselective-support-2018_en 1

Table of Contents GENERAL QUESTIONS 1. When will I receive the grant? 2. What is the period of the Action? 3. Where will I have to mention the Creative Europe Media logo? 4. When and how can I request an extension of the Action period? 5. Which date is considered as the date of "first theatrical release"? 6. Can a special screening or a screening in a festival be considered as "first theatrical release" date? FINAL REPORT 7. Where can I find the Final Report form? 8. When do I have to submit the Final Report? 9. What is an "eligible screen"? 10. What is the "First Week" of release? 11. The final number of is different from the forecast number of in the Grant Decision/Grant Agreement. Does this affect my MEDIA award? 12. What should I write in the tab "Budget"/"Costs" of the Final Report? 13. Should I submit other documents together with the Final Report? 14. What is the Royalty Statement? Is there any template? 15. What is the Final Payment Request? Where can I find it? 16. Which kind of document should I provide in case of further analysis of the Final Report? THE LUMP SUM TABLE TIMETABLE OF THE CALL CHECKLIST FOR BENEFICIARY FOR MORE INFORMATION 2

General Questions 1. When will I receive the grant? There are different possibilities regarding the pre-financing payment, described below. To verify which condition your payments depend upon, please always check Art. 4.1 of the Grant Decision / Art. I.4.1 of your Grant Agreement: a) You receive the pre-financing payment 50% of the forecast award upon the notification of the Grant Decision / upon entry into force of the Grant Agreement. You receive the second instalment of the grant upon acceptance by EACEA (the "Agency") of the Final Report and the other contractual documents (of all films in the package in case of a consolidated Grant Decision / Grant Agreement). b) You do not receive a pre-financing payment, but only a final payment upon acceptance by the Agency of, the Final Report and the other contractual documents (of all films in the package in case of a consolidated Grant Decision / Grant Agreement). 2. What is the period of the Action? The action shall run from the date of application or (for consolidated contracts) the date of first application in the package ("the starting date of the Action") and shall end 18 months after the deadline of the first or second round. This means that the date of first theatrical release of the film in the territory must take place within these two dates. 3

3. Where will I have to mention the Creative Europe Media logo? Article 9.3 of the Grant Decision / I.9.3 of the Grant Agreement - VISIBILITY OF UNION SUPPORT The beneficiary shall indicate in any communication or publication about the action, including its website, that the action has received funding from the European Union. Such acknowledgment shall be worded as follows: "with the support of the Creative Europe Programme - MEDIA" and be accompanied by the Creative Europe - MEDIA logo and the European flag. The beneficiary shall use the logos, trademarks or items created by the Agency for these purposes and include in the publications/catalogue of the action covered by this Agreement the text provided by the Agency. The obligation to comply with the publicity provision set out in General Condition n 7 constitu tes a substantial obligation. Without prejudice to the right to terminate the grant, in case of failure to fulfil this obligation, the Agency may apply a 20% reduction of the grant initially provided for. For this purpose, you need use the logo's on our website: https://eacea.ec.europa.eu/about-eacea/visualidentity_en MEDIA (with mention: Co-funded by + [programme name] of the European Union) Text on the left, Logos on the right: EPS JPG EU emblem (Alone) : EPS JPG You also are obliged to use the "Creative Europe MEDIA" animated logo and to acknowledge the support received under the Programme in all relevant material like the movie trailer and in front of each projection of the film in the theatre. You can find the logo here: https://eacea.ec.europa.eu/creative-europe-media-animated-logo_en 4

4. When and how can I request an extension of the Action/Eligibility period? Selective Scheme You should inform us as soon as you know that you cannot release the film within the period of the action mentioned in Art. 2.2 of the Grant Decision / in Art. I.2.2 of the Grant Agreement. Please send us as soon as possible and at the latest 1 month before the end of the period of the action / eligibility period, a written request, justifying the reasons for this extension. This request has to be signed by the authorized signatory of the company (see chapter 6.2 of the Guidelines). After evaluation of your request and if accepted, a maximum extension of 6 additional months to the period of the action will be given. EACEA will then issue an amendment to the Grant Decision/Grant Agreement with the new dates of the Action/Eligibility period. Example: Art. 2.2 of the Grant Decision / Art. I.2.2 of the Grant Agreement: "The action shall run as of 5/12/2017 ( the starting date of the action ) and shall end on 5/06/2019. This means that the date of first theatrical release of the film in the territory must take place within these two dates." => Consequently: For example Round 1 - You have to send your request in writing at the latest by 5/05/2019 - The new latest release date will be: 5/06/2019 + 6 months = 5/12/2019 - The new action/eligibility period will be: 5/12/2017 5/12/2019. 5. Which date is considered as the date of "first theatrical release"? The date of "first theatrical release" of a film is the official release date, i.e. the date in which the film was theatrically released for commercial purposes in the territory. The date of first theatrical release of the film, also for consolidated Grant Decisions/Grant Agreements, must take place from the date of application until 18 months after the deadline of the specific round ("period of the Action", see also FAQ nº 2): ROUND 1: the film can be released from the date of submission of the application, and at the earliest on 5 th October 2017, until 5 th June 2019. ROUND 2: the film can be released from the date of submission of the application and at the earliest on 14 th April 2018, until 14 th December 2019. 6. Can a special screening or a screening in a festival be considered as "first theatrical release" date? No, screenings during a film festival, avant-premières or special / private / press screenings cannot be considered as the first theatrical release of a film. 5

Final Report 7. Where can I find the Final Report form? The Final Report - as well as the embedded Activity Reports in case of consolidated projects only - has to be completed and submitted using the ereports from the Research and Innovation Participant Portal (http://ec.europa.eu/research/participants/portal/desktop/en/home.html). We strongly recommend to carefully read the user guide "how to complete and submit a project report using e-reports" (https://eacea.ec.europa.eu/sites/eaceasite/files/ereport_1.1.0_submission_user_guide_0_1.pdf) 8. When do I have to submit the Final Report? For single Grant Decisions/Grant Agreements & consolidated Grant Decisions/Grant Agreements: The Final Report accompanied by the most recent Royalty statement and the Final Payment Request is due at the latest 2 months after the end of the action/eligibility period. Example : Date of first theatrical release: 5/10/2017 Date of the end of action/eligibility period: 5/04/2019 => Final Report due by (latest): 5/06/2019 IMPORTANT: For Consolidated projects, you can submit the Final Report only when all projects in the package have been completed. 9. What is an "eligible screen"? To be eligible, cinemas must show the film minimum 5 times during the first week of release (except for children films - live-action and animation for less than 12 years old - which have to be presented a minimum of 3 times during the first week of release), as part of a commercial release that is advertised as such in the cinemas' listings and where a normal ticket price is paid. Special events are therefore excluded. A maximum of one screen per cinema can be declared. 10. What is the "First Week" of release? The first week of release is the 7 day period starting from the date of first theatrical release in the territory. 10

11. The final number of is different from the forecast number of in the Grant Decision/Grant Agreement. Does this affect my MEDIA award? The MEDIA award can never be higher than the amount specified in the Art. 3 of the Grant Decision / Art. I.3 of the Grant Agreement. In the event of non-execution or clearly inadequate execution of the action, the final grant will be reduced according to the lump sum table (see page 11 of these FAQ's) as specified in the guidelines to Call for Proposals EACEA/19/2016, and where applicable, you will be required to reimburse any excess amounts paid by the Agency in the form of pre-financing. (Art.9.6 of the Grant Decision/ Art I.9.6 of the Grant Agreement) Example: Estimated number of in France: 35 Forecast award: 46.300,00 Overspending: Final number of (approved): 45 => Final MEDIA award: 46.300,00 (= maximum amount) Underspending: Final number of (approved): 20 => Final MEDIA award: 30.400,00 (=maximum amount according to the lump sum table ) 12. What should I write in the tab "Budget"/"Costs" of the Final Report? In the tab "Budget", "Costs" are not related to the total "Distribution Costs" stated under the tab "Activity Reports"/"Information on the release", but they should correspond exactly to "Income". Example: Estimated number of in France: 35 Forecast award: 46.300,00 Final eligible in first week: 20 Final award declared: 30.400,00 Costs: Distribution Costs - Contractual: 46.300,00 Distribution Costs - Declared: 30.400,00 Income: EU grant requested - Contractual: 46.300 EU grant requested - Declared: 30.400,00 10

13. Should I submit other documents together with the Final Report? Yes, at the time of the submission of the Final Report, you have to attach the following documents: - An electronic version of the poster of the film(s) and, optionally, a selection of promotion/advertising material, as there is no more Release/Interim report to be provided; - The most recent Royalty Statement (one for each film if it is a consolidated Grant Decision/Grant Agreement); - The completed and signed Final Payment Request. 14. What is the Royalty Statement? Is there any template? The Royalty Statement is the document that the distributor sends to the licensor of the distribution agreement (usually the Sales Agent), to report on the total current income and expenses of the film, for each category of granted rights, stating what is due to each party. This happens usually first on a monthly basis after the release and later on a quarterly basis. EACEA does not provide a specific form for this document; it depends on the model each company uses. 15. What is the Final Payment Request? Where can I find it? The Final Payment Request is a form to be filled in and signed by the Legal Representative or the authorised signatory of the company. You can download the document at the bottom of the page http://eacea.ec.europa.eu/creativeeurope/beneficiaries-space/distribution-selective-support-2018_en or through the direct link https://eacea.ec.europa.eu/sites/eacea-site/files/final_payment_request_1_3.doc. 16. Which kind of document should I provide in case of further analysis of the Final Report? If the project is selected for a further analysis of the Final Report, EACEA will request evidence in order to substantiate the declaration of the distributors (according to the permanent Guidelines to the selective scheme for call EACEA/12/2017, p 19). Evidences such as box-office reports, screening reports, cinema invoices, cinema listings, Comscore reports, Cinetel reports, MACCS reports are accepted if it clearly proves the number of screenings by screen (=cinema) during the first week of theatrical release. It is advised that distributors have this evidence available in case of verification or audit. 10

The Lump Sum Table The lump sum requested is set according to the country and the size of the release that is quantified on the basis of the maximum number of eligible covered on the first week of release: Bulgaria, Cyprus, Estonia, Croatia, Ireland, Iceland, Lithuania, Luxembourg, Latvia, Malta, Romania, Slovenia, Slovakia and other countries joining the programme 1. A (1-2) B (3-7) C (8+) D (15+) E (25+) F (40+) G (60+) H (100+) 2.200 2.600 5.000 5.700 7.100 10.700 I (200+) Czech Republic, Denmark, Finland, Greece, Hungary, Norway, Portugal, Sweden. Austria, Belgium, Poland, Switzerland, The Netherlands. 5.300 8.300 11.000 16.500 19.400 33.300 5.300 9.100 13.000 20.800 28.600 58.200 101.100 France, Germany, Italy, Spain, United Kingdom 7.300 17.200 30.400 46.300 67.400 103.000 125.000 150.000 1 Albania, Bosnia & Herzegovina, FYRoM, Montenegro, Republic of Serbia 11

Timetable of the Call a) Stages Date or indicative period Publication of the call September 2016 b) Deadline for submitting applications c) Round 1 Round 2 Tuesday 5 th December 2017, 12:00 noon (Brussels time) Thursday 14 th June 2018, 12:00 noon (Brussels time) Evaluation period December 2017 March 2018 June-October 2018 d) Information to applicants April 2018 November 2018 e) Signature of Grant Agreement or notification of Grant Decision f) Starting date of the action (first release of the film) May 2018 November 2018 The film can be released from the date of submission, and at the earliest on 5 th October 2017. The film can be released from the date of submission, and at the earliest on 14 th April 2018. g) Max. duration of the action From date of the application until 18 months after the deadline. 12

Checklist for beneficiary Before submitting the Final Report, you can use this checklist to make sure that you filled in all necessary information: I have mentioned the Creative Europe Media logo on every promotional & advertising material as well as on my website & on social media (facebook page / publication, etc.) I filled in the Final Report, corresponding to the right project Inside the Final Report, I filled in the Activity Report(s) and the First Week: List of Cinemas (for each film in case of a consolidated Grant Decision/Grant Agreement), the Summary & the Budget In each Activity Report, I entered a brief description of the Theatrical Release Campaign I attached some publicity material of the film(s), at least one poster, together with the Final report. I attached the most recent Royalty Statement(s) of the film (for each film in case of a consolidated Grant Decision/Grant Agreement), as sent to the Licensor I attached the Final Payment Request, signed by the Legal representative or the authorised signatory of the company For more information The MEDIA SELECTIVE DISTRIBUTION Programming functional mailbox: EACEA-DISTRIBUTION- SELECTIVE@ec.europa.eu Ms. Silvana PASQUALINO Tel: +32 229-54291 Mr. Jean-Didier GAZEAU Tel: +32 229-84879 13