COGECO Program Development Fund - Guidelines and Applications: Guidelines

The COGECO Program Development Fund ("COGECO Fund") was established to encourage the development of new Canadian drama, written by Canadian writers and produced by independent Canadian producers, primarily for private sector broadcasters, in English or French, or preferably in both languages.

The COGECO Fund is a private, not-for-profit corporation established by COGECO Inc., a media and communications company. It is incorporated by letters patent issued under the authority of the Canada Corporations Act.

It is directed by a six-member Board of Directors. By contractual arrangement, its programs are administered through the facilities and services of the Independent Production Fund. The COGECO Fund provides financing through two separate programs: the Development Program and the Production Program.

3. DEVELOPMENT PROGRAM

Cogeco Cable Inc., a subsidiary of COGECO Inc., contributed $5 million to establish an endowment fund for this program. The annual revenues generated by the development fund (interest, loan repayment and other) are primarily allocated for development funding in accordance with the guidelines and policies of the COGECO Fund. The Board of Directors does, however, retain the option to reinvest part of the annual proceeds in order to maintain the value of the capital of the Fund.

3.1 PRE-DEVELOPMENT FUNDING (for series, mini-series and MOW’s)
In recognition of the need to stimulate the creation and development of innovative concepts, the Cogeco Fund accepts requests for funding for the “pre-development” of dramatic productions that have not yet obtained broadcaster support. The objective of this program is to provide an opportunity to producers to finance third party costs incurred to develop the project sufficiently in order to present it to broadcasters and other financiers to obtain development commitments and financing.

3.1.1 Applicant eligibility

To be eligible for financial support, applicants must:

be a Canadian independent producer, defined as a producer who operates a production company in Canada that is majority owned and controlled by Canadians and that produces programs primarily for broadcast by broadcasting undertakings which are not its affiliates
have a minimum of two years production experience and have previously produced at least one broadcast Canadian television drama as an independent producer
Producers who do not meet this requirement but who are judged to have equivalent experience may be deemed eligible at the Board’s discretion.

3.1.2 Project eligibility

To be eligible for financial support, projects must meet the following requirements:

Projects must be in early concept/development stages without the participation of a broadcaster
It must be a dramatic series, movie-of-the-week (MOW) or a mini-series intended for prime-time broadcast; children’s productions are exempt from the prime-time requirement
It must use Canadian scriptwriters
The producer must have proof of ownership of the property and the rights or options to produce and exploit the production
It must be intended to qualify as Canadian under the CRTC Regulations and policies
In the case of official co-productions, the Canadian production company must have majority control
It must be in compliance with the laws, regulations, standards and policies applicable to broadcasting and to intellectual property, and it will not infringe upon any public or private rights and will not otherwise contravene any civil and criminal laws in effect
Only one project may be submitted each year by a producer/production company

Projects which have been previously submitted to the Fund but were not approved for funding, are not eligible for re-application

3.1.3 Financial Contribution

Eligible production companies may receive a maximum of $10,000 for one project each year.

Funding is offered in the form of recoupable advances that must be repaid on the first day of principal photography of the production.

The advance must be used exclusively for direct third party pre-development costs such as screenwriters, consultants, script editors, researchers, marketing specialists, sales and promotional materials. Corporate overhead, payments to employees or producer fees are not eligible costs.

3.1.4 Evaluation Process

Complete applications submitted to the COGECO Fund are initially examined by the Fund's consultants to ensure that all required documentation has been submitted and to undergo preliminary analysis.

Applications are then referred to a jury comprised of a minimum of two persons representing the French and English-language television industries, named by the Board of Directors from among its members. The jury members may not be Directors or Officers of COGECO Inc. or any of its subsidiaries. Members of the jury may not participate in a decision concerning a project in which they themselves, or persons with which they are associated, have a direct or indirect financial interest.

Eligible applications are assessed on how well they meet the objectives and general policies of the COGECO Fund. Projects will be compared on the basis of quality. Projects will be judged according to their likelihood to be broadcast in English, French, or both languages and the extent to which they will be available for anglophone and francophone audiences in Canada.

Notification of decisions will be communicated in writing to the applicants generally eight weeks after each application deadline. Successful applicants must finalize financing of their projects within 90 days and meet any other conditions of funding, or the commitment may be cancelled.

All interpretations of these Guidelines and all decisions made by the jury or the Board of Directors are at the jury's or the Board's absolute discretion. All decisions are final and are not subject to appeal.

3.1.5 Documents Required

Completed and signed Application Form
A summary of the project
A pre-development schedule
A pre-development budget and proposed financing
Names and biographies of the key collaborators on the project
Delivery documents
Intended broadcaster(s)

The COGECO Fund reserves the right to return any application considered to be incomplete or inconsistent with the present guidelines, or to require additional information before proceeding with the application.

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3.2 DEVELOPMENT FUNDING (for series, mini-series, movies-of-the-week (MOW’s) and multiplatform content)

3.2.1 Applicant Eligibility

To be eligible for financial support, applicants must:

be a Canadian independent producer, defined as a producer who operates a production company in Canada that is majority owned and controlled by Canadians and that produces programs primarily for broadcast by broadcasting undertakings which are not its affiliates
have a minimum of two years production experience and have previously produced at least one broadcast Canadian television drama as an independent producer

Producers who do not meet this requirement but who are judged to have equivalent experience may be deemed eligible at the Board’s discretion.

3.2.2 Development stages

Development loans are available for the following four different stages that may be adapted as required:

treatment for the production, or in the case of series, treatment of the first epsidoes, Bible and/or outlines for the series; or
first draft script, or in the case of series, first draft scripts for the first three (3) episodes; or
final scripts, or in the case of series, final scripts for the first three (3) episodes
in addition, eligible projects in development may qualify for up to $5,000 for the development of a cross-platform proposal to create original content based on the television project, for other distribution platforms such as websites, mobile content, interactive television or podcasts.

The Cogeco Fund reserves the right to fund projects at any or all of the above development stages, on a per project basis, depending on the particular features, requirements and quality of the project as well as the availability of funds.

3.2.3 Project Eligibility

To be eligible for financial support, applicants must meet the following requirements:

Projects must be:

a) dramatic television series; or
b) movie-of-the week (MOW) or two-part mini-series for prime-time broadcast.
c) cross-platform development projects for content for alternate distribution platforms, that accompany eligible television projects (which may or may not require Cogeco financial assistance)

it must obtain a firm letter of commitment for development from a Canadian broadcaster, dealing in good faith and at arm's length, sharing in the costs of development and indicating its intent to broadcast the production in consideration of appropriate rights payments, either in English or French, or in both languages, in an original, dubbed or captioned version, and in prime-time (except children's series), within two years; preference will be given to private sector broadcasters;
it must use Canadian scriptwriters;
it must be of high quality and suitable for broadcast to Canadian audiences;
it must be part of a series with minimum running time of 30 minutes, or in the case of a MOW, must have a minimum running time of 75 minutes (exceptions may be made on a case-by-case basis)
it must have the Canadian first window release on Canadian television;
the development stage for the proposed project must not already be completed and production must not have commenced;
the Producer must have proof of ownership of the property and rights or options to produce and exploit the production;
it must qualify as Canadian under the CRTC Regulations and policies
in the case of official co-productions, the Canadian production company must have majority control;
it must be in compliance with the laws, regulations, standards and policies applicable to broadcasting and to intellectual property, and it will not infringe upon any public or private rights and will not otherwise contravene any civil and criminal laws in effect.

3.2.4 Financial Contribution

Funding is available in the form of development advances which are to be reimbursed on the first day of principal photography. The Development Program allocates an average of $5,000 for each stage of development, to a maximum of $15,000 - $20,000 for a project. Note that the Fund’s financial commitment may not exceed that of the broadcaster.

Projects applying for multiplatform content development may qualify for a development loan of up to $5,000. Development assistance takes the form of recoupable advances.

Terms and conditions include the following:

advances from the COGECO Fund may be used for development costs including, but not limited to, scriptwriter fees, script-editors, research, travel, normal overheads;
producers may apply with more than one project at any time as long as each project is written by a different writer;
advances will normally be interest-free and must be reimbursed on the first day of principal photography;
a written contract duly executed by the successful applicant and the COGECO Fund establishing the terms and conditions of the advance;
payments are made according to a payment schedule established for each project. Payments may be delayed or withheld if adequate documentation is not provided;
advances are to be evidenced by a promissory note from the producer;
advances become immediately due in full upon the sale, transfer or assignment of the project, or if the producer is in default of its obligations under the agreement, becomes insolvent, is petitioned into bankruptcy, or is the subject of a claim or proceeding affecting the rights of the proposed program;
acceptance of funding from the COGECO Fund establishes the Fund's right to audit all accounts and records of the applicant;
acknowledgement of the COGECO Fund in credits and promotional material.

3.2.5 Evaluation Process

Complete applications submitted to the COGECO Fund are initially examined by the Fund's consultants to ensure that all required documentation has been submitted and to undergo preliminary analysis.

3.2.6 Required Documents

Complete, signed Application Form
Complete detailed development budget for the project
Complete detailed budget for the development stage for which funding is applied
Confirmation of financing for the previous development stages, where applicable
Financial structure and confirmation of financing for the development state for which funding is applied.
Development schedule
Letter of commitment from an eligible broadcaster. The letter must state the amount contributed to the development of the project.
Agreements(s) with the scriptwriter(s) and, where applicable, the script editor
Biography and filmography of the producer(s), the scriptwriter(s) and where applicable, the researcher and script editor.
All rights agreements in the case of an adaptation
A copy of the original material in the case of an adaptation
If the application is for:
a) Bible/Treatment/Outline submit a 1,000 word description of the concept including a description of the main characters
b) First Draft: submit the bible of the series, the treatment and a summary of at least three episodes; or, a treatment for the MOW/Mini-Series
c) Final Draft: submit the draft scripts for all the episodes concerned in the application and the plan for the revisions; or the first draft MOW/Mini-Series script.
d) If the request includes a cross platform proposal: complete section VII of the application form, attach a budget and resumés for any team members

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3.3 CORPORATE THEATRICAL FEATURE FILM DEVELOPMENT FUNDING

Funding is available for eligible feature film production companies for the development of a slate of theatrical feature films.

3.3.1 Applicant Eligibility

To be eligible for support, an applicant must:

be a Canadian independent producer defined as a producer who operates a production company in Canada that is majority owned and controlled by Canadians;
have produced within the past 5 years, at least three theatrically released or broadcast productions from the following categories: feature film, movie-of-the-week, or mini-series; at least one of these must have been theatrically released.

Any producer who does not meet this requirement but who is judged to have equivalent experience may be deemed eligible at the Fund's discretion.

3.3.2 Project Eligibility

To be eligible for support, projects must meet the following requirements:

a minimum of three (3) feature films must be in development stages by the production company during the 12 months following application
be intended initially for theatrical release
use Canadian scriptwriters
have a minimum running time of 90 minutes
may not have commenced production
the Producer must have proof of ownership of the property and rights or options to produce and exploit the production
productions must be intended to qualify as Canadian under the CRTC Regulations
in the case of official co-productions, the Canadian production company must have majority control
be in compliance with the laws, regulations, standards and policies applicable to broadcasting and to intellectual property, and will not infringe upon any public or private rights and will not otherwise contravene any civil and criminal laws in effect.

3.3.3 Financial Contribution

Development assistance takes the form of advances to a maximum of $35,000 per company which are subject to the following terms and conditions:

advances may be used for any phase of development for any of the projects submitted;
advances are normally interest-free; 50% of the advance must be reimbursed on the first day of principal photography of any one of the projects submitted and the balance of the advance must be reimbursed on the first day of principal photography of any other project submitted;
advances will generally be made in 2 installments, upon signature of a contract and at an intermediate development stage to be negotiated;
advances become immediately due in full upon the sale, transfer or assignment of the project, or if the producer is in default of its obligations under the agreement, becomes insolvent, is petitioned into bankruptcy, or is the subject of a claim or proceeding affecting the rights of the proposed feature film;
acknowledgement of the COGECO Fund in credits and promotional material.

3.3.4 Evaluation Process

Complete applications submitted to the Fund are initially examined by the Fund's consultants, and are then submitted to a selection jury named by the Board of Directors.

Eligible applications are assessed on how well they meet the objectives and general policies of the Cogeco Fund. In addition, the track record of the production company, the creative and business aspects of the production package submitted, production viability and suitability for theatrical release are considered. Companies that have previously received support under this program should have repaid part or all of their previous corporate loan before reapplying to this Program. All interpretations of these Guidelines and all decisions are final and are not subject to appeal.

3.3.5 Documents Required

a completed and signed APPLICATION FORM submitted electronically without any attachments.

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4. PRODUCTION PROGRAM

Funding is available in the form of equity investments. The Fund seeks recoupment of its investment and profit participation.

Under the terms of CRTC Public Notice 1997-98 regarding contributions to Canadian programming by Broadcast Distribution Undertakings (BDU's), the BDU's controlled by Cogeco Cable Inc. are directing 20% of their requisite fund contribution to the production program.

4.1 Applicant eligibility

To be eligible for support, an applicant must:

be a Canadian independent producer defined as a producer who operates a production company in Canada that is majority owned and controlled by Canadians;
have at least two years production experience and have already produced at least one broadcast dramatic Canadian television project as an independent producer.

Any producer who does not meet this requirement but who is judged to have equivalent experience may be deemed eligible at the Fund's discretion.

4.2 Eligible Projects

Eligible productions include:

Pilots for dramatic series; or
Movies-of-the week (MOW's); or
two-part mini-series; or
theatrical feature films that have previously received financial support through the Cogeco Fund’s Corporate Theatrical Feature Film Program

All productions must be intended for prime-time broadcast (with the exception of children’s programming).

To be eligible for support, projects must:

have obtained from a Canadian broadcaster(s) with a CRTC broadcasting licence, dealing in good faith and at arm's length, a licence agreement, or firm letter of commitment to licence the production at an appropriate licence fee consistent with industry standards, and a commitment to broadcast in prime time, within two years following completion of the production. In the case of children's programming, the prime time requirement does not apply;
in the case of pilot investment, demonstrate as part of the application and to the satisfaction of the jury, the potential of the pilot to develop into a viable series (This demonstration may take the form of a series bible, sample story ideas using the same characters or situation, etc.);
in the case of movies-of-the-week, be a minimum of 75 minutes running time and must have their Canadian first window release on Canadian television;
in the case of theatrical feature films, must have a television broadcast licence as part of the financing and must have been included in a corporate slate of films financed previously in development under the Cogeco Fund’s Corporate Theatrical Feature Film Program
qualify under the CRTC regulations as Canadian programming with a minimum of eight out of ten points for Canadian content certification;
in the case of official co-productions, have a Canadian participation of not less than 50%;
have copyright in the completed production beneficially owned by a Canadian citizen or landed immigrant or by a corporation incorporated under the laws of Canada or a province of Canada.
productions must not have started principle photography at the time of application

4.3 Financial Contribution

The Production Program may fund up to $250,000 for the production of a MOW, mini-series or feature film; it may fund up to $35,000 for the production of a pilot episode. Note that the financial participation of the Cogeco Fund will not exceed that of the broadcaster.

Terms and conditions for investments include the following:

funding is in the form of equity investments to be recouped according to the terms of the Production Financing Agreement;
a written Financing Agreement duly executed by the successful applicant and the COGECO Fund establishing the terms and conditions of the investment;
payments are made according to a payment schedule established for each project;
acceptance of funding from the COGECO Fund establishes the Fund's right to audit all accounts and records of the applicant;
acknowledgement of the COGECO Fund in credits and promotional material;
productions must conform to the industry guidelines on sex-role portrayal and violence endorsed by the CRTC;
it becomes immediately due in full upon the sale, transfer or assignment of the project, or if the producer is in default of its obligations under the agreement, becomes insolvent, is petitioned into bankruptcy, or is the subject of a claim or proceeding affecting the rights of the proposed program.

4.4 Evaluation Process

Complete applications submitted to the COGECO Fund are initially examined by the Fund's consultants to ensure that all required documentation has been submitted and to undergo preliminary analysis.

4.5 Documents Required

Complete, signed Application Form
Complete detailed production budget for the project
Financing breakdown and proof of financing already secured
Proposed recoupment schedule
A letter of commitment from an eligible broadcaster indicating its financial commitment and intent to broadcast in prime time (exemption: children’s programming).
All distribution agreements including a detailed list of proof of licences, pre-sales and other revenue sources (whether included in the production financing or not
Production schedule
Cast and crew list
Biography and filmography of key personnel
Projected cash flow
Marketing plan including sales projections
If the application is for:
(a) Pilot: Series bible, two copies of the final script, director’s notes, any outside reader’s reports which are available
(b) Movie of the Week/Mini-Series/Theatrical Feature film: two copies of the final script, director’s notes, any outside reader’s reports which are available
proof of incorporation and Canadian ownership of the production company

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The COGECO Fund reserves the right to change at any time the present Guidelines, to issue new general policies, or to vary their application as it deems fit. Such changes will not however, have the effect of superseding any conflicting provision in the contracts signed prior to the issue of these changes.