Co-production between

Ukraine and other countries.

Practical aspects

1. Legal aspects governing the film industry in Ukraine.

2. International conventions.

3. Actors in the film industry (scheme)

4. Copyright in the movie.

    - Co-authors (director, screenwriter, composer, cinematographer, artist);

    - Processing works;

    - Alias ;

    - The producer;

    - Objects (synopsis, tritment, script, shooting script);

5. Stages of film production.

6. The agreement between the co-producers. Contractual tricks.

7. Investments in the movie. Tax credits, royalty.

8. International differences in the United States, Europe, Russia.

Plan

Legislation in Ukraine

*The Constitution of Ukraine

*Copyright and Related Rights Act of Ukraine

*Cinematography Act of Ukraine

*The Civil Code of Ukraine

*Protection of Rights to Trademarks for Goods and Services Act of Ukraine

*European Convention on Cinematographic Co-Production, 1992 (ratified in 2009)

*Advertising Act of Ukraine

*Protection of Public Morality Act of Ukraine

*Television and Radio Act of Ukraine

*The National Council of Ukraine on Television and Radio Broadcasting Act of Ukraine

* Information Act of Ukraine

International conventions

- European Convention on Cinematographic Co-production

Strasbourg, 2.X.1992

- Berne Convention for the Protection of Literary and Artistic Works1 

of September 9, 1886

Definitions*cinematographic work shall mean a work of any length or

medium, in particular cinematographic works of fiction, cartoons and documentaries, which complies with the provisions governing the film industry in force in each of the Parties concerned and is intended to be shown in cinemas

*co-producers shall mean cinematographic production companies or producers established in the Parties to this Convention and bound by a co-production contract;

*European cinematographic work shall mean a cinematographic work which meets the conditions laid down in Appendix II, which is an integral part of this Convention;

*multilateral co-production shall mean a cinematographic work produced by at least three co-producers

Assimilation to national films

*European cinematographic works made as multilateral co-productions and falling within the scope of this

Convention shall be entitled to the benefits granted to national films by the legislative and regulatory provisions

in force in each of the Parties to this Convention participating in the co-production concerned.

*The benefits shall be granted to each co-producer by the Party in which the co-producer is established, under the conditions and limits provided for by the legislative and

regulatory provisions in force in that Party and in accordance with the provisions of this Convention.

Conditions for obtaining co-production status

*Any co-production of cinematographic works shall be subject to the approval of the competent authorities of the Parties in which the co-producers are established, after consultation between the competent authorities and in accordance with the procedures laid down in Appendix I. This appendix shall form an integral part of this Convention.

*Applications for co-production status shall be submitted for approval to the competent authorities according to the application procedure laid down in Appendix I. This approval shall be final except in the case of failure to comply with the initial undertakings concerning artistic, financial and technical matters.

* Projects of a blatantly pornographic nature or those that advocate violence or openly offend human dignity cannot be accorded co-production status.

* The benefits provided by co-production status shall be granted to co-producers who are deemed to possess adequate technical and financial means, and sufficient professional qualifications.

* Each Contracting State shall designate the competent authorities mentioned by means of a declaration made at the time of signature or when depositing its instrument of ratification, acceptance, approval or accession. This declaration may be modified at any later date.

Proportions of contributions from each

co-producer*In the case of multilateral co-production, the minimum contribution may not be less than 10% and the

maximum contribution may not exceed 70% of the total production cost of the cinematographic work.

When the minimum contribution is less than 20%, the Party concerned may take steps to reduce or bar access to national production support schemes.

*When this Convention takes the place of a bilateral agreement between two Parties the minimum

contribution may not be less than 20% and the largest contribution may not exceed 80% of the total production cost of the cinematographic work.

Rights of co-producers

*The co-production contract must guarantee to each co-producer joint ownership of the original picture and sound negative. The

contract shall include the provision that this negative shall be kept in a place mutually

agreed by the co-producers, and shall guarantee them free access to it.

*The co-production contract must also guarantee to each co-producer the right to an internegative or to any other medium of

duplication.

Technical and artistic

participation*The contribution of each of the co-producers shall include

effective technical and artistic participation. In principle, and in accordance with international obligations binding the Parties, the contribution of the co-producers relating

to creative, technical and artistic personnel, cast and facilities, must be proportional to their investment.

*Subject to the international obligations binding the Parties and to the demands of the screenplay, the

technical and craft team involved in filming the work must be made up of nationals of the States which are

partners in the co-production, and post-production shall normally be carried out in those States.

Financial co-productions

Co-productions may be granted co-production status under the provisions of this Convention if they meet the following conditions:

* include one or more minority contributions which may be financial only, in accordance with the co-production contract, provided that each national share is neither less than 10% nor more than 25% of the production costs;

* include a majority co-producer who makes an effective technical and artistic contribution and satisfies the conditions for the cinematographic work to be recognised as a national work in his country;

*help to promote a European identity; and

*are embodied in co-production contracts which include provisions for the distribution of receipts.

Financial co-productions shall only qualify for co-production status once the competent authorities have given their approval in each individual case, in particular taking into account the provisions of Article 10 below.

General balance

*A general balance must be maintained in the cinematographic relations of the Parties, with regard both

to the total amount invested and the artistic and technical participation in co-production cinematographic

works.

*A Party which, over a reasonable period, observes a deficit in its co-production relations with one or more

other Parties may, with a view to maintaining its cultural identity, withhold its approval of a subsequent co-

production until balanced cinematographic relations with that or those Parties have been restored.

Credits of co-producing countries

*Co-producing countries shall be credited in co-produced cinematographic works.

*The names of these countries shall be clearly mentioned in the credit titles, in all publicity and

promotion material and when the cinematographic works are being shown.

Export When a co-produced cinematographic work is exported to a

country where imports of cinematographic works are subject to quotas, and one of the co-producing Parties does not have the right of free entry for his cinematographic works to the importing country:

*the cinematographic work shall normally be added to the quota of the country which has the majority participation;

*in the case of a cinematographic work which comprises an equal participation from different countries, the cinematographic work shall be added to the quota of the country which has the best opportunities for exporting to the importing country;

*when the provisions of sub-paragraphs a and b above cannot be applied, the cinematographic work shall be entered in the quota of the Party which provides the director.

Languages

*When according co-production status, the competent authority of a Party may demand from the co-producer established therein a final version of the cinematographic work in one of the languages of that Party.

*Unless the co-producers decide otherwise, co-produced cinematographic works shall be shown at international festivals by the Party where the majority co-producer is established, or, in the case of equal financial participation, by the Party which provides the director.

Festivals

Субъекты в кинопроизводствеProduce

rAuthors-

Director-

Composer-

Writer-

Operator-

Painter

Funding:1. Investors2. Sponsors3. Patrons4. State5. Funds

CinemaTV

InternetMedia support Accountancy

Этапы производства фильма

Before production

Preparation script

Casting of actors

Search finance

Selection of locations

Copyright in the film

it is fixed by the law temporary sole right and personal nonproperty rights of authors to use the benefits of their intellectual activity  or means of identification.

Intellectualproperty

Copyright Allied rights

a part of civil law, that regulate relationship, related with creating and using benefits of creative activity

the rights of performers on benefits of their creative activity, the rights of producers of phonograms and broadcasting organizations

Industrial property

subjective rights on different results of intellectual activity, that have special legal protection because of economic activity importance, industry and trade

Copyright in the film

*Film - audiovisual work consisting of episodes connected together creative ideas and graphic means, and resulting overall work of the authors, artists and creators. By means of image capture and distribution of films are divided on the film, video, and so on;

Cinematography Act of Ukraine

The agreement between the co-producers "BABUSI-DEDUSI“

"Babusi-Dedusi" - the documentary that challenges conventional notions of old age among people of all ages, including elderly people themselves,

and also shows that older people may not be a ballast, and play a creative, successful and active part in society.

This is a film about the Ukrainian amateur artist Hanna-Tsaryuk Grytsyk ('82) and Vladimir Sokolov (86 years)

who have worked all their life, raising children, doing their job, not knowing

that at old age they will become popular artists. 

Today, these cheerful characters, despite their age, full of energy and love for life. They are an example of

that is never too late to realize yourself in a case that you really love.The film was shot in Kiev and Tallinn.

Agreement of intention № 04072012 Nr. July 4th, 2012 Kiev-Tallinn

Договор о намерениях № 040720124 июля 2012 г. Киев-Таллинн

Limited liability company “Star Independents“ (Ltd. “Star Independents” ), proceeding after the company’s statute, represented by director Olena Yaremchuk, hereinafter referred to as “1”; and limited liability company “Red Fox”(JSC “Red Fox”), proceeding after the company’s statute, represented by director Yuliya Leescu, hereinafter referred to as “2”, hereinafter two companies referred to as “JOINT PRODUCERS”, have made the following agreement: OBJEСT OF THE AGREEMENT“JOINT PRODUCERS” hereby undertakes to cooperate under the terms and conditions set forth herein, in fulfillment of the documentary film (3 versions) under the working title “ROADMATES”, hereinafter referred to as PRODUCTION, provided under such condition: 50 % - “Star Independents”;50 % - « Red Fox»,Characteristics planned for the documentary film:The working title: “ROADMATES”,Duration:, 20 min (short version), 52 min. (TV version) and also 80 min. (festival version) version.The film is shot in: HD VIDEO.Language: Russian, Ukrainian, Estonian.1.2 – Poster and trailer

Общество с ограниченной ответственностью “ Star Independents ”(ООО «Star Independents» ), действующее на основании устава в лице директора, Елены Яремчук, в дальнейшем называемая как “1”; с одной стороны, и общество с ограниченной ответственностью “Red Fox”(OOО «Red Fox»), действующее на основании устава, в лице директора Юлии Леэску, в дальнейшем называемое как “2”, в дальнейшем все организации именуются «КОПРОДЮСЕРЫ», заключили следующий договор: 1. ПРЕДМЕТ ДОГОВОРА«КОПРОДЮСЕРЫ» обязуются сотрудничать в рамках, указанных в договоре, создавая три версии документального фильма с рабочим названием «ПОПУТЧИКИ», в дальнейшем ПРОИЗВЕДЕНИЕ, согласно их вкладу в него:- 50% - “Star Independents’’- 50 % “Red Fox”;Технические характеристики планируемого документального фильма:Рабочее название «ПОПУТЧИКИ»,Продолжительность – 20 минут, 52 мин. (телевизионная версия) и 80 мин.(фестивальная версия).Материал фильма– HD VIDEO.Язык – русский, украинский, эстонский, английский, испанский. 1.2 Создание – Постера и трейлера фильма1.3 Разработка и подписание прав на музыкальное сопровождение фильма.1.4 Создание стратегии маркетинга и продаж ПРОИЗВЕДЕНИЯ Додоток 1.1.5 Организации презентации и пиар компании фильма на территории влияния сторон. Eto nie yazyk film, eto tolko titry.

CONTRIBUTION OF THE PARTYThe contribution of the “1”:

-the fulfillment of the marketing and sale strategy of PRODUCTION on the territory of СIS, Georgia, Armenia, Azerbajan, Switzerland, Far East, Latin America, Canada, USA, Spain, Poland-the search of the financial sources for the post – production of PRODUCTION

The contribution of the “2”:-The post- production of the PRODUCTION’s TV and festival versions ; - the search of the financial sources for the post – production of PRODUCTION;- the fulfillment of the marketing and sale strategy of PRODUCTION on the terrtitory of Romania, Estonia, Lithuania, Latvia, France, Finland, Germany, Middle East, Italy, Czech Republic, Slovakia, Slovenia, Hungary, Bulgaria Iceland, Denmark Netherlands, Luxembourg

2. ВЗНОС СТОРОН В СОВМЕСТНУЮ ДЕЯТЕЛЬНОСТЬ2.1. Взнос “1”:- разработка украинских и испанских титров.Организация презентации фильма в Украине, России.Ведение пиар компании-исполнение стратегии маркетинга и продажПРОИЗВЕДЕНИЯ на территории СНГ, Грузии, Армении, Азербайджана, , Швейцарии, Дальнего Востока Латинской Америки Канады США Испании, Польша-поиск источников финансирования для пост-продакшна ПРОИЗВЕДЕНИЯ2.2. Взнос “2”:  -работы, связанные с пост-продакшном телевизионной, короткой и фестивальной версииРазработка и подписание прав на музыкальное сопровождение фильма. -Создание – Постера и трейлера фильма разработка русских, английских и эстонских титров.-исполнение стратегии маркетинга и продаж ПРОИЗВЕДЕНИЯ на территории Румынии, Эстонии, Литвы, Латвии, Франции, Германии, Финляндии Дании Голландии Словакии Словении Люксембурга Исландии Чехии Венгрии Ближнего Востока- поиск источников финансирования

TERRITORYThe agreement is valid in the territory of the whole world.

  COPYRIGHTS AND INTERESTS, ASSIGNMENT OF EXPENSES AND REVENUE.4.1 COPRODUCERS declare, that they own the rights of the script concept, and the final version of the production titled “ROADMATES”, under the conditions foreseen in this agreement.4.2. The whole contribution, provided by JSC “Star Independents ” and JSC „Red Fox“ firstly will be committed to the expenses connected to post-production of the PRODUCTION, and also marketing and sales of both versions of PRODUCTION.“JOINT PRODUCERS” «1» и «2» have a right to distribute PRODUCTION on the territories, mentioned in paragraphs 2.1 and 2.2 of this agreement. Each one from “JOINT PRODUCERS”, becomes an owner of this project and the whole material related to it, as well as all copyright and interest accordingly to their contribution:-50 % - “Star Independents”;-50 % - „Red Fox“;  4.3 The revenue gained from sales of film on any territory will be divided accordingly to the Attachment 1. 4.4. If “COPRODUCERS” do not fulfill their obligations, the division of revenues and authorship rights shall be reconsidered.

3. ТЕРРИТОРИЯ3.1. Договор распространяется на всю территорию земного шара и космического пространства. 4. АВТОРСКИЕ И СМЕЖНЫЕ ПРАВА. РАЗДЕЛЕНИЕ ДОХОДОВ И РАСХОДОВ.4.1. КОПРОДЮСЕРЫ подтверждают, что им принадлежат права на концепт сценария и на окончательный вариант создаваемого фильма «ПОПУТЧИКИ», на условиях, указанных в данном договоре.4.2. Взносы ЗАО “Star Independents ”и ЗАО “Red Fox” в первую очередь будут предназначены для расходов, связанных с производством фестивальной версии ПРОИЗВЕДЕНИЯ, а также маркетингом и продажами всех версий ПРОИЗВЕДЕНИЯ.«КОПРОДЮСЕРЫ» «1» и «2» получают права на дистрибьюцию этого ПРОИЗВЕДЕНИЯ на территориях, указанных в п. 2.1 и 2.2 данного договора, после утверждения окончательной версии и подписания общего документа о принятии версий Додаток 2 к договору.Kаждый из «Копродюсеров» является собственником материала и версий фильма, а также всех авторских и смежных прав в долях:- 50 % - “Studija JU”;- 50 % - „Red Fox“; 4.3 В случае продажи фильма на любой территории Копродюсеры обязаны распределить прибыль согласно Приложению 3.4.4 Ко продюсер имеет право продавать права на Дистрибюцию самостоятельно от двух сторон, но обязуется получить письменное согласие второй стороны в виде емейл письма. После заключения контракта о продаже он обязан отправить отсканированную копию договора второйсторонyе в течении 7 дней с момента подписания договора.4.4. В случае, если КОПРОДЮСЕРЫ не выполняют свои обязанности да декабря 2012  , разделение доходов и авторских прав должно быть пересмотрено. Stavim zdes’ dekabr, na vsyakiy sluchay

OBLIGATIONS AND RIGHTS OF THE PARTIES “JOINT PRODUCERS ” shall undertake to regulate and confirm the estimates of the preparation, production works as well as other works related to the fulfillment of the PRODUCTION. “JOINT PRODUCERS“ shall undertake to share the funded estimate articles upon the separate agreement falling JSC „Star Independents“ (50 %) and „Red Fox“ ”(50 %);

“JOINT PRODUCERS“ each individually shall administer the accountancy of the part of the estimate that belongs to each Party under the separate agreement ( articles 2.1, 2.2) and shall be responsible for the payment and obligations against the third Parties that agreements shall be made with. “JOINT PRODUCERS“ each has the right to contact the third Parties without coordinating each other, with the intention to raise the funds for the part of the estimates belonging to each of “JOINT PRODUCERS“ apart ( articles 2.1, 2.2), if it doesn‘t break the rights provided in this Agreement. The rest of the contracts and the agreements with the third Parties have to be confirmed by both Parties of “JOINT PRODUCERS“.

5.4. Parties shall undertake to submit to each other the whole information including the documents concerning PRODUCTION project and its fulfillment,5.5. In case of loss “JOINT PRODUCERS“ shall share the responsibility in following order:5.5.1. if loss is incurred because of the fault of one Party, the guilty Party shall cover it; 5.5.2. if loss is incurred because of the fault of the two Parties, “JOINT PRODUCERS“ shall cover the loss in equal parts.5.6. “JOINT PRODUCERS“ everywhere are described as the equal copywright owners. 5.7. The names and the surnames of the crew: script author, director, director of photography, studio producing the film and producers shall be included in the film’s credits as well as in all the announcements connected to the production, advertisement and distribution.5.8. “JOINT PRODUCERS“ shall agree that Rodion Ismailov shall be the director of both versions of „ROADMATES“ film.

ПРАВА И ОБЯЗАННОСТИ СТОРОН5.1. «КОПРОДЮСЕРЫ» обязуются сообща принимать решения, связанные с подготовительными работами , производством и всеми другими работами, имеющими отношение к смете проекта. «КОПРОДЮСЕРЫ» обязуются в каждом отдельном случае сообща рассматривать вопросы финансирования согласно пунктам сметы, касающимся как ООО“------- ”(50 %), ООО „Red Fox“ ”(50 %); и обмениваться подписанными соглашениями. 5.2. Каждый из «КОПРОДЮСЕРОВ» самостоятельно ведет бухгалтерию согласно пунктам 2.1, 2.2 и отвечает за оплату и обязанности перед третьими сторонами, с которыми были заключены договора.

Каждый из «КОПРОДЮСЕРВ»Имеет право, не советуясь с другой стороной, отдельно подписать договор с третьей стороной, ища финансирование согласно пунктам 2.1, 2.2 и утвержденной сметы, при этом, не нарушая прав по этому договору. Все остальные договора и согласования, составленные с третьими лицами, должны быть согласованы «КОПРОДЮСЕРАМИ».

Стороны обязаны предоставитьодна другой полную информацию, в том числе и все документы, что связано с созданием проекта и ПРОИЗВЕДЕНИЯ.5.5. В случае убытков «КОПРОДЮСЕРЫ» должны покрывать убытки в следующем порядке: 5.5.1. если убытки произошли по вине одной из Сторон, виновная Сторона должна покрыть их;5.5.2. если убытки произошли по вине двух Сторон, Стороны покрывают убытки в равных долях.

«КОПРОДЮСЕРЫ» всюдуобъявляются как обладатели авторских прав на фильм.

Имена и фамилии творческойгруппы фильма – автора сценария, режиссера, оператора, также как название студии, на которой производился фильм, а также имена продюсеров должны быть указаны в титрах фильма, а также в любых информационных сообщениях, связанными с производством, рекламой, тиражированием и распространением.

«КОПРОДЮСЕРЫ» соглашаются,что режиссером трех версий фильма «ПОПУТЧИКИ», будет Родион Исмаилов.

6. OPPORTUNITY TO TRANSFER THE RIGHTS6.1. Each of “JOINT PRODUCERS“ shall remain the right to transfer partly its right to one or few companies on condition that Producer -“JOINT PRODUCERS“ party – will stay as garantee of the fulfillment of the obligations, certified by this Agreement.

6. ВОЗМОЖНОСТЬ ПЕРЕДАЧИ ПРАВ6.1. Каждый из «КОПРОДЮСЕРОВ»оставляет за собой право передать часть своих авторских прав одной, или нескольким компаниям при условии, что Продюсер – одна из сторон «Копродюсеров» останется гарантом в полной мере выполнения своих обязательств.

TERM OF AGREEMENT 7.1. The Agreement shall come into force from the day of its singing;

The validity and termination of the Agreement is related to:

the absolute fulfillment of the obligations, settled in this Agreement;the Agreement is valid as long as “JOINT PRODUCERS“ are running their rights to the PRODUCTION;

Supplements, amendments or termination of the Agreement shall be valid only if made in writing upon consent of three Parties;

The Agreement may be terminate upon the written consent by two Parties.

СРОК ДЕЙСТВИЯ ДОГОВОРАЭтот договор вступает в

силу с момента его подписания.Действия окончания договора

связаны:с полным выполнением

обязательств, вытекающих из этого договора.

договор являетсядействующим до той поры, пока действует авторское право «КОПРОДЮСЕРОВ» на ПРОИЗВЕДЕНИЕ.

Все изменения, дополнения иисправления возможны, если они зафиксированы в письменном виде и подписаны двумя сторонами.

Договор может быть расторгнутсогласно письменному соглашению, подписанному двумя сторонами.

CONFIDETIALITYThe Parties shall obligate to keep confidential the specific terms and conditions, the technical, intellectual and commercial information of this Agreement ( hereinafter referred to as Confidential information) and shall garantee that the information will be revealed to the third Parties only upon the written consent by both Parties and the circumstances provided by European Union‘s law.

КОНФИДЕНЦИАЛЬНОСТЬСтороны обязуются сохранять втайне техническую, интеллектуальную ( стратегические планы), коммерческую и любую другую информацию, связанную с данным проектом, в дальнейшим именующуюся Конфиденциальной Информацией, и стараться, чтобы эта информация была передана третьим лицам только с письменного согласия другой стороны или Законов Украины и ЕС в установленном порядке.

DISPUTES9.1. Parties shall assure that disputes and pretensions rising from this Agreement shall be resolved by agreement of the Parties; 9.2. Upon failure to agree in negotiation, the disputes rising from this Agreement will be resolved in the procerdure prescibed by the laws of the European Union.

ОБЖАЛОВАНИЯСтороны будут стараться

разрешить все конфликты, которые могут возникнуть по данному договору, мирным путем переговоров, на основах обоюдного уважения.

Если несогласие не удастсяразрешить мирным путем, все жалобы, связанные с данным договором, будут рассмотрены в суде на основании законов Украины и ЕС.

ADDITIONAL CONDITIONS10.1. The Agreement is made in English and Russian languages, in two copies – one copy for each of the Parties;10.2. All two copies are of equal legal force; 10.3. In case if the particulars of the Party indicated in this Agreement are changed, the Party shall obligate to inform another Party within 10 days from the mentioned changes. Otherwise, the information mailed by the old address will be treated like eligible.  10.4. The Parties shall be excused from the fulfillment of the obligations in case of the circumstances of Force Majeure.

ДРУГИЕ УСЛОВИЯ ДОГОВОРА10.1 Этот договор составлен на английском и русском языках в двух экземплярах , по одному каждой стороне. 10.2. Все два экземпляра имеют одинаковую юридическую силу. 10.3. Обмениваясь в этом договоре указанными реквизитами, стороны обязуются в течение 10 дней с момента их изменения сообщить об этом другой стороне. Если в указанные сроки стороны не известили об изменениях в адресе, сообщения, посланные по старому адресу, считаются действительными. 10.4. Стороны договора считаются освобожденными от своих обязательств, если они происходят от обстоятельств непреодолимой силы– форс-мажорных обстоятельств – на все вышеназванное время.

LEGAL ADDRESSES AND SIGNATURES OF THE PARTIES  

11. АДРЕСА ЮРИДИЧЕСКИХ СТОРОН И ПОДПИСИ  

UKRAIN

Tax – 15%

 Royalty is a payoff, that is paid for using film

CyprusTax –5%

WHY PAY MORE?

YouLegal

person

10,000,000×5%=

500,000

10,000,000×15%=

1,500,000

Legal person

Licence. contact

SAVE 1,000,000

royalty

International differences

Europe:

* authors - the director, composer, writer

Unatied States:

*authors - producer, director, composer, writer

Russia:

*authors - the director, composer, writer, cameraman

With respect

Yaremchuk Alena

067 47 023 67www.ayaremchuk.com