Investment Criteria




The Company will exclusively invest in projects of which the prospects of success are judged beneficial by the following three parties
independently:  the film distributor, the DVD distributor as well as the supervisory board of the Company. The final decision concerning the
financing of a project can also made by the management itself only after a strict checklist of investment criteria is fulfilled.

  1. The license agreement of the motion picture must allow that the theatrical receipts and the video-/DVD receipts as well as all assigned receipts stemming from further licensed rights can be cross collateralized against the producer in the royalty statements (cross collateralization).
  2. All P&A costs must be able to be deducted prior to the producer’s share.
  3. All net receipts stemming from theatrical distribution (distributor’s rental fees) must be at the company’s disposal to their full extent, after deduction of the sales fees of the distributor, for the recoupment of the P&A costs. The licensor’s shares of the video/DVD receipts must be available for the recoupment of the P&A costs in case of theatrical underfunding. A video/DVD distributor’s minimum guarantee is defined as licensor’s share in this sense. In order to guarantee the pre-financed costs it is possible in individual cases to replace the licensing receipts stemming from video and DVD distribution by receipts stemming from other forms of exploitation, as far as these secure an equal guarantee amount, e.g. pay-TV, video-on-demand.
  4. The distributor must make a forecast for the company, which is evaluated as feasible by the management board of the company as well as by the DVD distributor – concerning both the amount and the content. The forecast must also include revenue estimates for the video-/DVD sales, provided that no other collateral is available to the Company.
  5. The P&A-budget of a motion picture is financed by the Company to a maximum extent of 75%. The recoupment must take place in first position. The distributor finances at least 25% of the P&A-budget himself. The recoupment of the distributor’s share takes place in second position.
  6. The distributor must present a target audience analysis of the motion picture and prove that comparable pictures have achieved the planned result in the past. The distributor must be willing to confirm the target audience analysis through test-screenings, the results thereof are to be disclosed to the Company.
  7. The amount of the approved P&A budget can be adjusted upwards or downwards unilaterally by the Company after the box office receipts of the picture have been publicised in its country of origin.  
  8. The distributor’s track-record must prove that it has the ability to market a motion picture of the planned type and dimension appropriately and professionally.
  9. The release date must be scheduled so that the necessary capital is completely at the Company’s disposal at this time.