Terms Feature Film

1. PURPOSE

1.1 The Danish Film Institute (DFI) can subsidise the preparation of scripts, the development and production of Danish feature films and the participation of Danish production companies in international co-productions of feature films. Subsidies are awarded by the DFI's management.  

1.2 The purpose of the DFI's subsidies is to secure the continual production and dissemination of different types of films, so that the overall range of films, in terms of artistic quality, diversity, volume and audience appeal, sustains and develops Danish cinema and cinema culture, both domestically and internationally. 

1.3 Film subsidies can be awarded under the Film Commissioner Scheme or the 60/40 Scheme.  

1.4 DFI subsidies under the 60/40 Scheme come with certain restrictions, in accordance with the Danish Film Act and the DFI's regulations. Subsidies may constitute no more than 60% of the budget for script preparation, project development or film production. The 60/40 Scheme is intended for films that are expected to sell at least 175,000 tickets. Applications for production subsidies under the 60/40 Scheme are processed by the DFI following the scheduled application deadlines published on the DFI website.  

2. SCRIPT SUBSIDIES   

2.1 Upon recommendation of a Film Commissioner (Film Commissioner Scheme), or under the 60/40 Scheme, the DFI can award subsidies to script preparation, including pitch, breakdown, storyline, treatment, script research, script writing, dramaturgical assistance and acquisition of rights to a script.  

2.2 The purpose of script subsidies is to ensure the highest possible quality of the script and to form a basis for the DFI's evaluation of a possible subsequent application for development or production subsidies to the film project. Under the 60/40 Scheme, two external assessments of the film project's audience and dramaturgical potentials are performed as a basis for the overall evaluation of the application. 

2.3 Script subsidies can be awarded to a writer, a director personally writing the script, a production company or a team of the aforementioned. If the subsidy recipient is a production company, a contract with a writer must be presented to the DFI. The subsidy recipient must subsequently provide documentation for the use of the funds.  

2.4 Script subsidies for acquiring the rights to a literary property for adaptation, or an option on such rights, can normally only be granted to a production company. The amount of the subsidy may normally constitute no more than 50% of the cost of acquiring such rights.  

2.5 If application is made for a subsidy for adapting a copyright-protected work, the application will not be approved until the applicant has satisfactorily documented that the project does not infringe on any copyrights.

2.6 Applications must contain a description of the objective, the expected outcome, the submission date and information about possible previous writers and other rights holders. Moreover, the application must state whether the project has received or has applied for other financing. If a script is available, two copies of it must be submitted.

2.7 Applications for script subsidies under the 60/40 Scheme must furthermore contain a breakdown or treatment, a description of the director's intentions, information about the project's scriptwriter, director and producer, as well as a distributor's assessment of the film's audience potential and market opportunities. The maximum subsidy under the 60/40 Scheme is DKK 75,000. Only one application for script subsidies can be made for any particular project. 

2.8 Script subsidies are usually paid in two instalments: half upon the subsidy recipient's written acceptance of the subsidy commitment, and the final half when the outcome of the subsidised project has been approved by the DFI, referring to the recommendation on which the subsidy approval was based. Two copies of the outcome of the script subsidy must be submitted.  

2.9 If the letter of commitment is not signed and returned to the DFI within one month – along with a copy of a signed writer's contract, if the subsidy recipient is a production company – the commitment is void without further notice.  

2.10 The DFI's commitment to a script subsidy does not imply a commitment to subsequent development or production subsidies.  

2.11 If the film project is later awarded a production subsidy by the DFI, the script subsidy is considered part of the total repayable subsidy. If the film project is not later awarded a production subsidy, the script subsidy is non-repayable. 

3. DEVELOPMENT SUBSIDIES

3.1 Upon recommendation of a Film Commissioner (Film Commissioner Scheme), or under the 60/40 Scheme, the DFI can subsidise the development of a film project, if such development is judged to be significantly important for strengthening the project artistically, financially or production-wise, or in terms of the film's target groups or audience potential.  

3.2 The purpose of development subsidies is to ensure the best possible development of the project and to form a basis for the DFI's evaluation of a possible subsequent application for production subsidies to the film project. Subsidies can be awarded for all forms of development costs, including the acquisition of third-party services. 

3.3 Before a decision to award development subsidies is made, the DFI performs a production and financial assessment of the project, plus, in some cases, an assessment of the film's target group and distribution potential. Under the 60/40 Scheme, moreover, two external assessments of the project's potential are performed.  

3.4 The application must contain a description of the film project and the director's intentions, as well as a precise description of the matters for which the development subsidy application is being made, a statement about the expected outcome of the project development, a schedule for the development process, a budget and a financing plan. Administrative expenses of no more than 7% can be included in the budget. 

3.5 Applications for development subsidies under the 60/40 Scheme must furthermore contain a script and information about the project's scriptwriter, director and producer, plus a distributor's assessment of the film's audience and market potentials. The maximum subsidy under the 60/40 Scheme is DKK 200,000. Application for development subsidies can only be made once for any particular project. 

3.6 The DFI usually does not approve a development project's budget if it contains a margin of uncertainty.  

3.7 Development subsidies are usually paid in two instalments: the first instalment upon the production company's written acceptance of the subsidy commitment and the second instalment upon the DFI's approval of the final accounts and the development outcome. However, the DFI may in the subsidy commitment specify that the development subsidy be paid in a greater number of instalments.  

3.8 The production company is responsible for managing project development and must present audited accounts for expenses relating to project development, cf. Items 5.4.1 and 5.4.2. The accounts must be represented within one month of the completion of project development, unless the DFI grants an extension in writing. Any savings relative to the approved budget must immediately be repaid to the DFI in a proportion equal to the share of the DFI subsidy.

3.9 The production company must continually keep the DFI informed about the progress of project development, including any changes to the development project's schedule.  

3.10 A commitment to development subsidies does not imply a commitment to subsequent production subsidies. Application for production subsidies for projects that received development subsidies may later be made, either under the Film Commissioner Scheme or the 60/40 Scheme for feature films. 

3.11 Production subsidies cannot be awarded until the audited accounts of the development project have been presented, cf. Items 5.4.1 and 5.4.2. 

3.12 If the film project is later awarded a production subsidy by the DFI, the development subsidy is considered part of the total repayable subsidy. If the film project is not later awarded a production subsidy, the development subsidy is non-repayable. 

4. PRODUCTION SUBSIDIES

4.1 Upon recommendation of a Film Commissioner (Film Commissioner Scheme), or under the 60/40 Scheme, the DFI can subsidise the production of Danish feature films.  

4.2 Before a decision to award production subsidies is made, the DFI performs a production and financial assessment of the project, as well as an assessment of the film's target group and distribution potential.  

4.3 Applying for production subsidies for films with a Danish majority production company

4.3.1 An application for production subsidies must contain the following information and documents:

• Three copies of the script under the Film Commissioner Scheme, and six copies under the 60/40 Scheme.
• Description of the director's intentions. 
• Schedules for preproduction, shooting and postproduction, and the expected release date.
• Production plan.
• List of the cast and crew.
• Budget prepared on a DFI-approved budget form.
• Financing plan (investments, distributor advances, pre-sales, equipment, own services, etc.) and information about any other possible support the project has received or applied for. The Financing Overview, cf. Appendix 1 of the present subsidy terms and conditions, must be used as a cover for the financing plan.
• Cash-flow plan.
• Statement about any possible agreements made with other companies (co-production agreements).
• Preliminary repayment schedule, including a specification of repayment to all co-financing parties.
• Distribution agreement or Letter of Commitment (LOC) regarding theatrical distribution in Denmark.
• Promotion schedule, cf. the DFI Terms and Conditions for Promotion Subsidies. For the 60/40 Scheme, the entire promotion schedule needs to be filled out. For the Film Commissioner Scheme, only the first three pages need to be filled out.
• Corporate information, upon request.
• Documentation proving that the applicant holds all rights to exploit the finished film. This includes copies of contracts with the scriptwriter, director, producer, et al.
• Curricula vitae for the scriptwriter, director and producer, plus the production company's other possible key personnel prospects.
• Any other agreements made concerning the film (e.g., collect and completion bond agreements). 

4.3.2 The DFI may request additional information and statements, as required for application processing.

4.4 Letter of Commitment (LOC) and Letter of Interest (LOI)

4.4.1 If the documents required under Item 4.3.1 are not complete at the time of application, the DFI may reserve production subsidies for a period, in a so-called Letter of Commitment (LOC). A subsidy commitment can only be drawn up once all the requirements in the LOC have been fully met.  

4.4.2 If the requirements stated in the LOC have not been met within the period set out in the LOC, the reserved production subsidy is void without further notice. 

4.4.3 In special cases, the LOC can be extended following a written application.  

4.4.4 The DFI can write a Letter of Interest (LOI) to show its interest in a project. However, the LOI is no guarantee that the project will receive subsidies.  

4.5 Budget and financing plan

4.5.1 Production subsidies are awarded based on a DFI-approved budget. The budget must list all costs at market prices, in DKK or EUR.

4.5.2 The budget must contain the following items:

• Administration costs of no more than 7% of the budget, excluding the costs of project development, the completion bond, and the margin of uncertainty.
• The producer's fee, the amount of which must be approved by the DFI, accounting for the nature and size of the individual production.
• Margin of uncertainty of at least 5% and no more than 10% of the budgeted production costs, excluding the costs of project development, administration and the completion bond.
• Premium for a possible completion bond or other security, in compliance with Items 5.3.1 and 5.3.2.
• Cost of a possible collection agent.
• The DFI-approved development accounts.

4.5.3 All financing and co-production agreements for the film, including the production company's own investment in the film, must be presented to the DFI for approval. The co-production agreements must specify the division of the film's financing and rights among the co-production partners and the Danish production company.

4.5.4 Production subsidies for the film can only be awarded once the production company has documented that the budget, including the margin of uncertainty, is fully financed. The DFI will withhold part of the production subsidy for partial coverage of the production budget's margin of uncertainty. The withheld amount constitutes the DFI-subsidised share of the margin of uncertainty calculated according to the DFI subsidy rate, cf. Item 4.10.6.

4.5.5 Applications for production subsidies under the 60/40 Scheme are evaluated on the basis of the application materials, cf. Item 4.3.1. Four external assessments of the film project's audience and dramaturgical potentials are performed based on the application materials. Assessment is performed according to a point system. In addition, the DFI performs the analysis described in Item 4.2. Based on an overall assessment, the film is recommended for rejection or for production subsidies. The DFI's management makes the final decision regarding subsidies based on the four external assessments and the DFI's analysis.

4.5.6 Sequels may apply for production subsidies no earlier than six weeks after the original film's theatrical release in Denmark.

4.6 Regional subsidies

4.6.1 The DFI can award regional subsidies to feature films that have obtained co-financing from a Danish regional film fund outside Greater Copenhagen.

4.6.2 The DFI's regional subsidy constitutes 50% of the fund's co-financing, though no more than DKK 1 million per film.

4.6.3 The DFI awards regional subsidies based on written documentation of a regional film fund's involvement. Application for regional subsidies can be made simultaneously with an application for production subsidies, or at a later date based on the DFI's LOC regarding the production subsidy.

4.7 Minority productions (co-productions with a foreign majority production company)

4.7.1 The DFI can subsidise film projects in which the Danish production company is not the majority co-production partner by up to 60% of the Danish share of the film's production costs.

4.7.2 For a film with a foreign majority production company to receive subsidies, the subsidy application must be made by a Danish production company, there must be Danish creative or technical involvement in the production, and a distribution agreement must have been made for Danish theatrical distribution or for broadcast on Danish television.

4.7.3 Assessment of such applications is based on the presence of the following:

• A creative and financial partnership between a Danish and an international production partner. Past partnerships and future plans will be emphasised.
• A Danish share in the creative and technical partnership, including participation of Danish film workers and the film's expenditure in Denmark.
• Artistic quality.
• Distribution potential, including the nature of the distribution agreement made by the production company.

4.7.4 Only one application per project may be made.

4.7.5 Applications for production subsidies must contain the application materials described in Item 4.3.1.

4.8 Payment instalments

4.8.1 Production subsidies are paid to the production company in instalments. The DFI determines the amount of individual instalments (usually totalling six) on the basis of the approved cash-flow plan. Individual instalments are normally paid based on the cost report provided by the production company, cf. Item 4.10.2. In case of significant changes to the schedule, production plan, cash-flow plan, etc., the DFI reserves the right to change the dates and amounts of the instalments.

4.8.2 Production subsidies are paid only upon the production company's written acceptance of the subsidy commitment.

4.8.3 The DFI may require the production company to provide a cost report attested by a registered or state-certified accountant, before individual instalments are paid.

4.8.4 The third to last instalment, constituting at least DKK 150,000, is paid once an A-print or similar is available and the DFI has received and approved the film's promotion and archive materials for use by the DFI in its promotion, publishing and festival activities, cf. Item 4.9.2.

4.8.5 The second to last instalment, constituting DKK 150,000, is paid once the archive materials have been submitted to, and approved by, the DFI Film Archive, cf. Item 4.9.1.

4.8.6 The final instalment is the withheld DFI share of the budget's margin of uncertainty and is paid in full or in part once the DFI has approved the film's production accounts.

4.9 Depositing materials

4.9.1 The production company must deposit archive materials relating to the film to the DFI Film Archive, cf. the applicable Legal Deposit Act at the time of deposit.

4.9.2 The production company must deposit materials relating to the film for the DFI's promotion, publishing and festival activities, in compliance with the applicable deposit list at the time of deposit.

4.9.3 The DFI must approve the technical quality of the deposited material.

4.9.4 Deposits made in compliance with Items 4.9.1 and 4.9.2 must be made free of charge and may be included in the production budget.

4.10 Financial reporting and accounts

4.10.1 During the production and postproduction phases, the production company must continually keep the DFI informed about the production's progress. The DFI is entitled to monitor the production of the film, including viewing rough cuts, fine cuts and the final version of the film. The production company must file daily reports.

4.10.2 During shooting, the production company must provide a cost report every two weeks containing the same items as the approved budget, plus expenditures to date, the estimated final outcome of the budget's main items, with relevant comments, and an updated cash-flow statement. In case of minority co-productions, cost reports need only be submitted in connection with instalment payments. If the final outcome is expected to exceed the approved budget, including the margin of uncertainty, the production company must prepare an audited budget, plus new financing and repayment plans, and present them to the DFI for approval. The DFI's approval of a cost report does not imply an approval of possible variances from the production budget.

4.10.3 The production company must submit the film's production accounts to the DFI for approval within three months of the film's world premiere.

4.10.4 The production accounts must contain a specification of the film's production costs as well as any revenues limiting the production costs (e.g., sales of props). The production accounts must furthermore contain a final financing and repayment overview. In preparing the final financing overview, use Appendix 1 of these terms and conditions.

4.10.5 Savings on the production accounts, including the total unspent margin of uncertainty, are transferred as revenue, while the DFI's withheld share of the unspent margin of uncertainty transfers to the film's expenses. For minority co-productions with an international majority production company, for which the DFI's film subsidy is contingent on a Danish production company's participation in the production, the film's unspent margin of uncertainty does not have to be repaid, if the Danish production company can make no claim to any savings on the film's budget, including sub-productions of the film.

4.10.6 The DFI's subsidy rate is calculated on the basis of the approved financing plan. Possible DFI script and development subsidies for the film project are included as part of the film's total subsidy, regardless of whether the recipient of the script and development subsidies is the same as the recipient of the production subsidy or not. The subsidy rate is equal to the share of the DFI's subsidies in proportion to the total financing.

4.10.7 Based on continual briefing about the production's progress and on the submitted cost reports, cf. Items 4.10.1 and 4.10.2, the DFI will normally approve that the production company, in the final accounts, offsets cost overruns of up to 10% of individual budget items against other individual items. The DFI can furthermore approve offsetting of variances on individual items in excess of 10% (note: there is a triviality limit of DKK 5,000) based on a statement accompanying the final accounts. If the total budget is exceeded, the final accounts must in any case contain a statement of the overrun. Budget overruns that are approved by the DFI are transferred as expenses for the film and are reimbursed to the production company as a first priority out of the film's revenue, in accordance with the film's repayment plan. In neither of the above cases will the DFI approve budget overruns for administration and salaries. For further details, see the accounting requirements in Item 5.4.

4.10.8 All salaries and fees relating to the production, as well as all due taxes to public coffers, must be paid before the accounts are presented. Upon request, the production company must be able to document that such payment has been made.

4.11 Revenue statements

4.11.1 The film's revenues are accounted partly for reasons of repayment of subsidies to the DFI, partly for statistical purposes. The revenue statement is based on the film's revenues in all countries and from all media.

4.11.2 Print and promotion subsidies from the DFI must be included in the revenue statement.

4.11.3 The DFI must approve all costs relating to sales and distribution of the film.

4.11.4 Revenues are accounted as follows:

• Revenue from Danish theatrical distribution is calculated as the invoiced film distribution proceeds less the documented costs of distribution fees and the costs of prints and marketing.
• Revenue from rental and sales of DVDs and videocassettes in Denmark is calculated as the invoiced rental and sales proceeds less the documented costs of promotion, distribution fees and direct costs.
• Revenue from Video on Demand (VOD) is calculated as the invoiced proceeds less the documented costs of promotion, distribution fees and direct costs.
• Revenue from TV broadcast in Denmark and abroad, international theatrical distribution and distribution in all other media, domestically and internationally, other than the aforementioned, are calculated as the sales price less documented, directly incurred sales and distribution costs.
• All other net revenues – e.g., sales of secondary rights relating to the film, including merchandising, remakes, sequels, sales of soundtracks and props from the film, as well as the production company's share of revenues from OS or I/S Danske Filmproducenter's settlement of points – are fully accounted in the film's revenue. CAB funds are not included in the film's revenue.
• Revenues that, according to the approved production accounts, are included in the film's financing, including minimum guarantees, pre-sales, etc., must be listed in the film's revenue statement but are not included in calculating the statement.

4.11.5 Both during and after the production of the film, the DFI is entitled to full insight into all payments. The DFI may require payments relating to the film to be made via a DFI-approved collection agent. If the production company decides to use a collection agent, the agent must be approved by the DFI.

4.11.6 The production company or the collection agent provides statements of the film's gross and net revenues (Revenue Statements) on DFI-approved forms. The DFI must receive revenue statements within 45 days of the end of each statement period. The first statement period runs for six months from the date of the film's world premiere, starting from the end of the quarter in which the film premiered. The next statement period concludes at the end of the production company's next accounting year. From then on, revenues are accounted once a year, using accrual basis accounting following the production company's accounting year.

4.11.7 Revenue statements must be audited by a registered or state-certified accountant. If the production company employs a DFI-approved collection agent in connection with the accounting and use of the film's revenue, the DFI can make an exception from the requirement on the production company to annually submit an audited statement of all revenue during the past calendar year. Exceptions are granted on the condition that the production company has transferred responsibility for accounting and distribution of the film's revenues to the stated collection agent and that the stated collection agent has assumed responsibility for submitting revenue statements, etc., to the DFI.

4.12 Distribution rights

4.12.1 The production company is obligated to make distribution deals for the film that ensure the film's best possible distribution in all media.

4.12.2 At least two weeks must pass between the Danish theatrical releases of films that have overlapping target groups. Any deviation from this rule must be approved by the DFI in writing.

4.12.3 The DFI must approve any distribution agreement for the film, including any deadlines to be met, before the film can be distributed to individual "windows". The film cannot be shown on Danish or Nordic non-pay TV until 24 months after the film's theatrical release, unless other agreement has been made between the production company and, e.g., DR or TV 2.

4.12.4 In agreements for Danish theatrical distribution, the distribution fee may constitute no more than 20% of the invoiced distribution proceeds.

4.12.5 In agreements regarding the transfer of rights to videocassette and DVD rental and sales in Denmark, the distribution fee may constitute no more than 40% of the invoiced rental and sales revenues after deduction of promotion and manufacturing costs (COT). Video and DVD rights cannot be sold outright to the distributor at a one-time charge, unless this has been approved in writing by the DFI.

4.12.6 In agreements regarding Video on Demand, the distribution fee may constitute no more than 20% of the net revenue.

4.12.7 In agreements regarding Danish TV broadcast, sales and distribution costs constitute the documented costs, although these may amount to no more than 30% of the sales price. Costs of pre-sales included under financing, or pre-sales included before the film's Danish theatrical release, cannot be deducted from the film's revenues.

4.12.8 In agreements regarding international TV broadcast and agreements regarding international distribution, the Danish production company can deduct documented direct sales and distribution costs. Documented sales agent fees can also be deducted, though not exceeding 30%. In case of sales to marginal markets, the DFI may approve certain exceptions.

4.12.9 Sales of rights to media other than the aforementioned, and sales of rights in "packages" extending to several countries, several "windows" or several titles, must be approved by the DFI.

4.12.10 The DFI may require full insight into sales agreements of any kind made by the production company or subsequent distribution links.

4.13 Repayment

4.13.1 Repayment of subsidies awarded by the DFI to films in which the DR or TV 2 does not invest must commence once the minimum guarantee and the private investment have been repaid and the private investment has yielded a 50% return. 

4.13.2 If DR or TV 2 has invested in the film, repayment of subsidies awarded by the DFI commences once DR or TV 2 has made back its investment. DR/TV 2's repayment commences once the private investment, including a 15% return, has been repaid, cf. the applicable standard contract. Repayment is made proportionately between DR/TV 2's investment and the production company's equity capital (the private investment plus Scandinavian minimum guarantees and pre-sales). Royalties and repayment to other parties, which are approved by the DFI, are to be respected, cf. Item 4.13.8.  

4.13.3 "Private investment" is understood to mean investments in the film made by the production company, co-production partners or other investors with a view to a return. If the production company, co-production partner or investor is a TV station, or is majority-controlled by a TV station, its investment cannot be included in the private investment. Majority control is the case when more than 25% of the production company is owned by a single TV station (50%, if several TV stations are co-owners), or when more than 90% of the production company's revenue over a three-year period originates from production agreeents with a single TV station. In consideration of the small size of the Danish TV market, the DFI can, upon request, make exceptions from the specified revenue limit. Possible minimum guarantees, pre-sales, contributions from funds or other film institutes likewise cannot be included in the private investment. The amount of the private investment is calculated on the basis of the approved production accounts and the related financing overview, cf. Appendix 1 of these subsidy terms and conditions. 

4.13.4 Regional film funds and other sources of financing that require repayment must have their repayment conditions approved by the DFI. The DFI usually accepts repayment of contributions from funds in accordance with the funds' statutes, and the DFI likewise usually respects customary royalty agreements. In such cases, the investors or royalty holders, upon DFI approval, are included in the repayment plan as an inserted priority and/or in a parallel track.

4.13.5 Repayment of subsidies to the DFI, in compliance with the approved repayment plan, must commence upon submission of the revenue statement, which states that repayment is required.

4.13.6 The repayable amount constitutes the repayment rate x revenue, after repayment of the private investment, and after repayment of a possible DR/TV 2 investment, until the DFI's subsidy has been repaid, cf. the applicable Standard Contract. The repayment rate equals the subsidy rate at the date of commitment, unless otherwise approved in writing by the DFI.

4.13.7 The repayment obligation ceases once the DFI's subsidy has been repaid, and no later than five years after the film's world premiere. Upon receipt of the first revenue statement, the DFI can waive its requirement for repayment and further revenue statements.

4.13.8 The principles of repayment for the film are stated in the Repayment Overview, Appendix 2 of these terms and conditions.

5. GENERAL TERMS AND CONDITIONS

5.1 The following general terms and conditions apply to all forms of DFI subsidies awarded according to these terms and conditions. Subsidies in these terms and conditions are understood to mean any form of capital infusion to a project that does not express an investment or a fee.  

5.2 Subsidy application, subsidy commitment and reporting

5.2.1 Subsidies can be awarded to Danish production companies, on the condition that the producer, or leading employees of the production company, can document experience in film production and have film production as their main occupation. The director and producer/production company may not be the same person, unless the DFI specifically judges this not to be of significance due to the special nature of the project.

5.2.2 All applications must be in writing, using the DFI application form.

5.2.3 As a requirement for receiving subsidies, full disclosure of all conditions regarding the rights to the individual project must be made. All applications must contain documentation proving that the applicant holds, or can acquire, all the necessary rights to adapt a work into a film and distribute the finished film.

5.2.4 At any time, the DFI can require the applicant to submit the documentation necessary for application processing.

5.2.5 In the subsidy commitment, the DFI can change or supplement the present terms and conditions in accordance with the subsidy's purpose. The production company is obligated to these terms and conditions, and any deviation must be approved in writing by the DFI. The DFI is obligated to respond to requests from the subsidy recipient in that regard within a reasonable period.

5.2.6 If changes to the schedule or production plan are made, the production company must immediately submit the changed schedule or plan to the DFI.

5.2.7 The DFI can withhold payment of a subsidy, if the DFI has an unsecured outstanding account against the applicant, or against a subsidy recipient controlled by the applicant, or against a subsidy recipient controlling the applicant.

5.2.8 Filmed scripts (Final Draft) will be stored at the DFI Library for public view and lending. Upon request by the scriptwriter, the DFI can decide not to make the script publicly available, if significant cause is demonstrated.

5.3 Security

5.3.1 To ensure the film's completion, in case of the production company's bankruptcy, as well as the DFI's conditional requirements for repayment of subsidies, the DFI can require the production company to provide satisfactory security. The production company must bear all costs of such a security.

5.3.2 The production company is obligated to complete the film. The DFI may require a completion bond to be taken out with a DFI-approved guarantor.

5.4 Accounts

5.4.1 The production company must present accounts for projects that have received development or production subsidies. The accounts must contain the same items as the approved budget, and the budget figures must be stated for comparison. The accounts must be audited by a registered or state-certified accountant.

5.4.2 An audit of the production accounts must at a minimum include a general audit of the accounts, as well as an audit of assets and liabilities, cf. the applicable DFI audit instructions. The Office of the Auditor General of Denmark has access to review accounts and vouchers submitted by the subsidy recipient.

5.5 Repayment and negligence

5.5.1 If the subsidy recipient abandons, or for other reasons prematurely terminates, a subsidised project, the subsidy must be repaid immediately. In such cases, the DFI may require auditor-certified accounts.

5.5.2 If the present terms and conditions are breached, or if it is determined that the film cannot legally be screened in Denmark, the DFI's subsidy commitment is void and any paid subsidies must be repaid.

5.5.3 The DFI can waive its repayment requirement, if, in the DFI's judgment, special circumstances apply, or if the repayment requirement will counteract the objectives of the DFI's activities, cf. the Film Act.

5.6 Credits

5.6.1 The film's opening credits must state that the film is produced with support from the "The Danish Film Institute", unless other agreement has been made between the production company and the DFI. The film's credit texts and all advertising materials must state that the film is produced with support from "The Danish Film Institute", name the Film Commissioner who recommended the film for subsidies and display the DFI logo. Under the 60/40 Scheme, the credits should state that the film is supported under this scheme. The DFI must approve the design of credit texts, advertising materials, etc., mentioning the DFI.

5.7 The DFI's rights

5.7.1 When rights to projects that have received subsidies are transferred, the DFI must approve such transfer in writing. Transfers must take place at market prices. The DFI can oppose a transfer, if the transfer entails a risk that the DFI will be unable to exercise its rights according to the present terms and conditions or other agreements made with the production company.

5.7.2 Should the subsidy recipient's circumstances prevent the implied use within 24 months of the project's most recent subsidy commitment from the DFI, the DFI, in order to ensure the realisation of the subsidy's purpose, can require the subsidy recipient to transfer the necessary rights to the subsidised project to the DFI with a view to using the rights through a retransfer. The subsidy recipient is entitled to be reimbursed by the DFI for documented costs relating to the project, plus the possible added value of rights related to the project, to the extent that such amounts exceed the amount of subsidies received from the DFI or other contributors. Disputes regarding the appraisal of the rights relating to the project are settled by arbitration, in accordance with the regulations of Voldgiftsinstituttet (Danish Arbitration).

5.7.3 The subsidy recipient can prevent the DFI from taking over the rights to the subsidised project, if the subsidies are repaid within 30 days of notification of the DFI demand for transfer of the rights.

5.7.4 The DFI has the right to screen the film at festivals, domestically and internationally. The DFI moreover has the right to screen the film domestically and internationally to paying audiences as part of its cinema-culture activities. The DFI may screen the film only at individual, special events, if the film is still playing in cinemas in the same geographical area. The DFI will notify the production company about its screenings.

5.7.5 In case of screenings to paying audiences, the DFI is obliged to follow the suggested sales prices, if the film is in commercial distribution. It is the production company's obligation to provide written information about suggested prices. If not, the DFI will price admission to the film.

5.7.6 The DFI is entitled to use film excerpts, stills, dialogue sequences and passages of title scores in promoting subsidised film productions domestically and internationally. The DFI moreover is entitled to use the materials, with appropriate credits, in the DFI's publications, including CD-ROMs and the Internet, as well as in festival and press contexts. All images must be deposited with credits for still photographers and mention of production companies. The DFI is entitled to copy and use film posters and deposited image materials with a view to exercising its rights according to the present terms and conditions.

5.7.7 The DFI is entitled to publish any information about the film in connection with the DFI's promotion and press activities, unless other agreement has been made in writing with the subsidy recipient.

5.7.8 The DFI may have prints of the film made for its own use, according to the present terms and conditions. Production of festival prints must, however, be ordered through the production company.

5.7.9 Taking into consideration the commercial exploitation of the subsidised film, the DFI has the non-exclusive right to distribute the film in any way and in any medium, both currently known and unknown, to schools, institutions, associations, film clubs, libraries and other non-commercial organisations in Denmark, Greenland and the Faroe Islands, and to the Danish minority in South Schleswig, once 36 months have passed since the film's world premiere, including screenings to paying audiences.

5.7.10 The DFI's exercise of its rights according to the present terms and conditions does not imply an obligation to pay fees to the production company or others, unless such has specifically been determined.

5.7.11 The subsidy recipient is obligated to make agreements with relevant rights holders and cast members to ensure the DFI's ability to exercise its rights to the finished production, as described in the present terms and conditions. The subsidy recipient must document to the DFI that the necessary rights have been obtained. The subsidy recipient must relieve the DFI of any liability, if a third party can make claims as a result of the DFI exercising its rights in accordance with the present terms and conditions or any other possible agreement with the subsidy recipient.

5.7.12 The subsidy recipient is obligated to append the present terms and conditions to all contracts relating to the film concerning circumstances regulated by the present terms and conditions or which might otherwise be of importance to the DFI's rights according to the present terms and conditions.

These present subsidy terms and conditions are specified by the DFI Board in accordance with the regulations of the DFI .