1. Belgian Tax Shelter An incentive for investments in audiovisual productions

2. The Tax Scheme A fiscal incentive to encourage companies to invest a share of their pre-tax profits in a European audiovisual production. Maximum exemption is 50% of pre-tax profits or € 750.000 per annum per company. Deduction from pre-tax profits for the investor of 150% of the invested amount. Covering a maximum of 50% of the production budget. Spending obligation in Belgium of 150% of the invested equity.

3. The Investor Legal Structure –Belgian corporation –or foreign corporation with a stable taxable branch in Belgium –not private investor and not audiovisual company Investment –maximum of € 500,000 per annum per company –can be split into a minimum of 60% equity and a maximum of 40% loan –can be invested in one or several audiovisual productions –in European Audiovisual Work not in audiovisual companies Deduction from pre-tax profits of 150% of the total investment Framework Agreement with Belgian production company

4. The Producer Legal Structure –Belgian corporation –activity of audiovisual development and production –not broadcaster and not company related to one Investments –maximum of 50% of budget of audiovisual production –can be split into a minimum of 60% equity (production finance) and a maximum of 40% loan (cash flow) –several investors per production possible Spend in Belgium must be 150% of equity investment Framework Agreement with Investing Companies

5. Eligibility of Audiovisual Productions Certificate confirming access to tax shelter finance –from Flemish Community or French Community of Belgium –Criteria: Belgian production company European Audiovisual Work “Television without Frontiers” Directive as ratified by Belgium: –Fiction, documentary or animation for theatrical release –Animated series for television –Documentary for television –Long form fiction for television –Children series (educational and cultural content)

6. The Framework Agreement Name and purpose of both companies Name and description of the audiovisual work Amount and nature of the investment –part loan (max. 40% and not to be provided by bank) –part equity Breakdown financing plan investor / producer Breakdown budget Belgian expenditure Reimbursement / Profit participation investor Investor’s commitment to limit: –investment to 50% of pre-tax profits –part loan to 40% of investment Producer’s commitment to finalize production within 18 months after signature

7. Summary Pre-tax Profit investor Investment Loan 100 Production Budget Tax Deduction Spend in Belgium = 100 x 150% x 34% = max. 50% Corporate tax = 34 % = 30% = 45% 200 51 90 40 x 150% x min. 60%x max. 40% Equity 60

8. Tax Savings

9. Investor’s Risk

10. Equity Production Cash Flow Budget 100 Loan Producer 2030 50 30 - Producer has 70% covered - Needs an additional 30% - Needs cash flow 20 Guarantee 50 Cash Flow + Investor 70