Approved by the Foundation's Board on 3 December 1998,

confirmed by the Ministry of Education on 15 December 1998

The Finnish Film Foundation grants support for professional film production in Finland. The Foundation’s goal is to promote high-quality, versatile and original Finnish film production.

Support can be granted upon application to feature-length, short and serialised fiction films, documentaries, and animated and children’s films. A feature-length film is defined as one whose running time exceeds 72 minutes, a short film one whose running time is less than 72 minutes.

Support cannot be granted to television companies or to companies in which a television company holds a stake of 15% or more, nor to a state, municipal or church authority or institution, nor to a company in which the state has a majority holding, nor to any organisation or institution comparable to the above. Neither can support be granted for a production that is intended for the marketing of a product, range of products or services, or anything comparable to these.

When support is granted for the Finnish contribution in an international co-production, the Finnish productional and artistic input must be in reasonable proportion to the share of financing secured from Finland.

2.1. Script support

Script support can be granted for the writing of a film script. The maximum support per film is FIM 50,000.

The applicant must supply the Foundation with the following:

• Information about the applicant (name, social security number, address and phone number, bank account number).
• A working plan for the script.

2. Development support

A production company holding the rights to a film in Finland can be granted support for the development of a film project. The support cannot exceed FIM 600,000 per film. The support can be applied toward e.g. the writing and further development of the script; production, shooting and set design plans, and any other measures required before a budget and the related financing arrangements can be completed.

The applicant must supply the Foundation with the following:

• Information about the applicant (name, trade registration code, address and phone number, bank account number)
• A project development plan, including a tentative production plan and an estimate of total production costs and financing
• A development budget and a financing plan
• The production company’s most recent closing of accounts and a current extract from the trade register.

2.3. Production Support

A production company which holds a film’s rights in Finland can be granted production support for the completion of a film production. Granted production support can cover a maximum of 70% of the film’s production costs, including any development support already granted for the project by the Foundation.

Production support cannot be granted for a completed production. A film is considered as completed when a finished release print or a TV master of it exists.

The applicant must supply the Foundation with the following:

• Information about the applicant (company name, trade registration code, address and phone number, bank account number)
• A script
• A detailed budget
• A financing plan
• A production plan, including a production schedule and details about the individuals with primary artistic and fiscal accountability for the project
• The production company’s most recent closing of accounts and a current extract from the trade register.

The budget must cover all production costs up to the first release print, including a 10% contingency for extraordinary costs. Compensation for the use of the producer’s own equipment cannot exceed 60% of the current rental rate.

Production support cannot be granted unless an insurance against loss of profits due to film negative damage and project interruption is taken for the film project if the production costs exceed FIM 5 million, and a completion guarantee if the film’s production costs exceed FIM 10 million.

If the film has been granted production support by the Foundation, the recipient is obliged to indicate in the film’s list of credits that the film has received production support from The Finnish Film Foundation and to supply the Foundation with promotional material as defined in the support agreement. Costs related to the preparation of this material may be included in the film’s production costs.

After consulting the recipient, the Foundation reserves the right to send a film which has received production support to international, non-commercial film events. If the recipient offers the film to similar international events independently and at his own cost, the recipient is obliged to inform the Foundation of this.

2.4. Marketing and Distribution Support

Marketing and distribution support is open to production companies holding the film’s rights in Finland or to the film’s Finnish distribution company. Support can be granted for the marketing and distribution costs related to the film’s theatrical distribution in Finland. Marketing and distribution support can cover 70% of the costs at most, a maximum of FIM 400,000 per film. For documentaries and short films, marketing support can also be granted for non-commercial distribution.

The applicant must supply the Foundation with the following:

• Information about the applicant (name, trade registration code, address and phone number, bank account number).
• A marketing and distribution plan defining the film’s target audience and the anticipated attendances, the film’s genre, its marketing concept and profile as well as campaign schedule and planned measures.
• A marketing and distribution budget and the related financing plan.
• A distribution contract.
• The company’s most recent closing of accounts and a current extract from the trade register.

3. SUPPORT DECISIONS

With a provisional support decision, the Foundation provisionally reserves support for the applicant. Provisional support decisions can be made only if the applicant has in earlier support decisions followed the guidelines and provided the Foundation with all the required reports on schedule. If the applicant or an individual or a legal person under contract to the applicant has several projects supported by the Foundation, the above stipulation may be applied to all projects of the applicants in question.

Provisional support decisions are based on an evaluation of the entire project in terms of content, expression and actual production, acknowledging the applicant’s artistic, productional and financial potential to complete the production in question. The Foundation may ask the applicant for additional information before making its final decision.

The provisional support decision expires unless a support agreement satisfactory to the Foundation is signed within the time frames given in paragraph 3.2.

The Foundation and the applicant must sign a production support agreement within six (6) months of the provisional support decision.

In terms of script, development and marketing and distribution support, the Foundation and the applicant must sign a support agreement within three (3) months of the provisional support decision.

The support agreement confirms the budget and the financing plan for the project in question. The budget should detail all project costs exclusive of VAT. If the applicant can prove that it is not entitled to VAT deductions, the VAT can be included in the budget. The confirmed budget and support allocations cannot be changed without the Foundation’s written consent. The recipient is accountable for the project’s progress as detailed in the support agreement.

The support agreement cannot be signed unless the Foundation has been supplied with the following documents:

• For production support, a cash flow plan for the project with detailed information about the gross costs of the venture.
• Agreements or confirmed documentation showing that the other financing detailed in the financing plan will materialise in full and in accordance with the cash flow plan.
• Contracts with the copyright holders.
• Other contracts related to the project’s success and to the support decision.
• Proof of paid pension plan contributions, extract from tax prepayment register or list of tax debt.

In the financing plan, the following can be acknowledged as the recipient’s own contribution to the funding:

• A cash contribution, provided that the producer can present a corresponding bank or equivalent guarantee of it.
• Suspension of the producer’s and other staff’s salaries to a reasonable degree, provided that the subject has given written consent for the suspension.
• Use of own equipment as detailed in the budget.

The above mentioned details with regard to the confirmation of the budget and the financing plan do not apply to script support. For script support, a support agreement can be signed once the Foundation has been supplied with appropriate contracts with the copyright holders.

The Foundation’s support must not be used for purposes other than those detailed in the support agreement.

Granted production support will be paid to the recipient in six instalments:

• 20% after the signing of the support agreement.
• 50% at the start of shooting
• 10% at the end of shooting once the recipient’s interim report has been approved by the Foundation
• 5% when the work print has been approved by the Foundation
• 5% at the completion of mixing (if the production has used the Foundation’s production services, the Foundation will deduct related costs from this instalment)
• 10%, or FIM 100,000 at most, when the final report has been approved by the Foundation and the promotional items defined in the support agreement have been delivered to the Foundation (if 10% of the support amounts to more than FIM 100,000, the difference will be paid out in the 3^rd instalment).

Script support, development support, and marketing and distribution support will be paid out in two instalments, 80% after the signing of the support agreement, the remaining 20% once the final report has been approved by the Foundation.

The Foundation reserves the right to deduct any outstanding payments before paying out granted support to the same recipient. The Foundation has the right to suspend support payments until further notice, if the recipient has not delivered the appropriate interim report or final report as agreed in the corresponding agreement or in any other contract signed with the Foundation.

The recipient's bookkeeping must be in compliance with the Bookkeeping Act and the Bookkeeping Statute, and be in accordance with sound accounting practice. The recipient is also obliged to arrange for an appropriate fiscal monitoring of the production. The Foundation reserves the right to inspect the recipient’s entire bookkeeping and administration.

If the monitoring of the project costs indicates changes in the budget or the financing plan, the recipient must notify the Foundation of it immediately and in writing. If project costs are clearly greater than the budget confirmed in the support agreement, the recipient must supply the Foundation with adequate documentation of acquired additional funding. The recipient is also obliged to notify the Foundation in writing about any other relevant artistic or fiscal changes in the project.

The recipient must supply the Foundation with an interim report on the production's progress at the end of shooting. The interim report should give detailed information about actual production costs against the budget, together with an estimate on further costs, and an account of the production’s progress against the outlined plans. The Foundation reserves the right to ask the recipient for further details it deems necessary for the approval of the interim report.

The recipient must submit to the Foundation a written final report by the agreed date, but no later than two years after the signing of the support agreement.

The final report must contain an account of actual costs, together with information about actual financing and sales.

For script support, the completed film script is equivalent to the final report.

The final report for development support must include the completed script, together with an account of actual costs. If a new provisional support decision for development and production support has already been made with regard to the film in question, the Foundation can decide that the reports on all related support can be given together.

The final report on marketing and distribution support must contain an account of actual costs.

The detailed account of actual costs in the final report must be based on the recipient’s bookkeeping and it must be verified by the recipient. A separate, itemised list must be given for any contingencies made in the report for use of the producer’s own equipment. If the total support granted to the project exceeds FIM 200,000, the account of actual costs must be verified by an certified accountant.

The Foundation reserves the right to ask the recipient to supply any additional reports it deems necessary for the approval of the final report. The Foundation also reserves the right to audit the production’s final report. The recipient must ensure that the Foundation's auditors are supplied with all the documents required for the audit.

Based on the final report and the possible audit the Foundation confirms the project’s actual costs. The share of extraordinary costs must not exceed their total in the budget confirmed at the signing of the support agreement.

Should the share of development support granted by the Foundation exceed the project’s final cost, and the share of production support or marketing and distribution support equal more than 70% of the final costs, the Foundation will deduct the difference from the support instalment not yet paid out or recover it from the recipient.

Should the recipient fail to submit the required reports, the Foundation may determine the actual costs on estimate.

The Foundation has the right to cancel the support agreement altogether and to reclaim paid support instalments in e.g. the following cases:

• The production for which the support was granted is to a considerable degree transferred to a third party, cancelled, or its artistic, productional or fiscal prerequisites change beyond the estimates underlying the initial support agreement;
• The recipient has failed to comply with the support guidelines, the terms of the support agreement, or other related obligations;
• The recipient has supplied false information or concealed facts affecting the support decision, its amount or prerequisites; or
• The production has been terminated or it cannot be carried out in the manner and schedule detailed in the support agreement as a result of the recipient's bankruptcy or for some other reason directly related to the recipient.

The recipient must repay obtained support within two (2) months of the Foundation's decision on an account indicated by the Foundation. The Foundation may oblige the recipient to pay interest on the total to be repaid or on the grounds for support recovery. The Foundation has the right to deduct support related to a recovery decision from other subsidies granted to the recipient. Cancellation of a support agreement does not affect the Foundation’s rights and the recipient’s obligations with regard to the final report as defined in chapter 6.

If the Foundation cancels a support agreement because the production has been interrupted and the film cannot be completed in the manner and schedule outlined in the support agreement, the Foundation has the right to take possession of all the recipient’s material and immaterial rights to existing footage of the film, including screening and distribution rights. The Foundation reserves the right to complete the production as it deems best. The recipient must not, without the Foundation’s written consent, sign any contracts that may be in conflict with the Foundation’s rights detailed here.

THE FINNISH FILM FOUNDATION

GUIDELINES FOR POST-RELEASE SUPPORT

Approved by the Foundation’s Board on 3 December 1998,

confirmed by the Ministry of Education on 15 December 1998

Post-release support can be granted, on the basis of a domestic film’s total attendance, to a production company that holds the film’s rights in Finland. Post-release support can be granted to a film with sufficient domestic content in the Foundation’s evaluation, whose domestic theatrical release was on 1 January 1997 or after that date and which attracted a minimum of 45,000 viewers who bought a regular-priced ticket to see the film at domestic film theatres in its first year of release.

The Foundation can grant FIM 20 in post-release support per each viewer who has bought a regular-priced ticket to see the film, but no more than a total of FIM 2 million. If the film has been granted production support by the Finnish Film Foundation, granted production support and post-release support cannot exceed a joint total of FIM 4 million.

The applicant must provide the Foundation with the following information:

• Information about the applicant (name, year the company was founded, trade registration code, address and phone number, bank account number).
• A certified accountant’s statement verifying the total production costs and a detailed account of obtained financing and its sources.
• The distributor’s statement confirming the number of viewers who’ve paid to see the film at a domestic film theatre in its first year of release.
• The company’s latest closing of accounts and a current extract from the trade register.

Post-release support is paid to the applicant the calendar year following the film’s theatrical release, once the Foundation has confirmed the total of granted post-release support for the film in question. The Foundation reserves the right to inspect the applicant’s bookkeeping to verify the above-mentioned reports. The Foundation also reserves the right to deduct from the post-release support granted to the recipient any recoverable instalments or any other collectibles the Foundation has from the recipient.

The Foundation is entitled to collect and recover paid out post-release support, if the recipient has given false information or concealed facts affecting the support decision or the total of granted support, or otherwise neglected to comply with the terms of post-release support.

The recipient must repay any recoverable post-release support to an account indicated by the Foundation within two (2) months of the Foundation’s decision to that effect. The Foundation can oblige the recipient to pay reasonable interest on the recoverable instalment of post-release support starting from the date when the support was paid out or when the grounds for recovery first became evident.

The Foundation reserves the right to deduct recoverable post-release support from other support granted by the Foundation to the recipient.