1. Capital reimbursement of the loan

In order to protect investors against the risk of non-reimbursement by SCOPE Pictures of the loan capital, representing 40% of the investment, SCOPE Pictures provides the investor, in advance of the latter’s payment of the loan amount, an irrevocable bank guarantee, immediately callable and produced on the basis of the bank guarantee template included in Appendix 7 of the SCOPE Invest prospectus, guaranteeing reimbursement on the due date of the capital invested.

2. Payment of producer’s net receipts

In order to protect investors against the risk of not receiving from SCOPE Pictures the producer’s net receipts to which their equity investment entitles them, the investor benefits from an option on the producer’s share of the net receipts from the film’s marketing. This option on the producer’s net receipts permits them, if necessary, to collect the receipts due to them solely from the companies entrusted with the marketing of the film in France, Benelux and on international markets, without the assistance or presence of the producer.

3. Payment of the sale option strike price

In order to protect investors against the risk of the film’s commercial failure, SCOPE Invest has issued a sale option permitting any investor to sell to it their receipt rights within a period of five (5) years dating from the first day of the nineteenth (19th) month following the release in cinemas of the film in Benelux, provided that a minimum of twenty-seven (27) months has elapsed since the date on which the investment was paid in full by the investor. The payment of this strike price by SCOPE Invest may be covered by a bank guarantee, but according to the stipulation of the SDA, such a guarantee can only be issued at the cost of the investor.

4. Risks linked to the tax concession

Investors who take part in the Scope Invest offer may, subject to observance of the conditions stipulated in Article 194ter of the 1992 ITC, benefit from the exemption from its taxable profit reserves up to a level of 150% of the sums actually paid by the latter in fulfilment of the framework agreement included in Appendices 3 and 4 of the prospectus. However, in order for investors who proceed with an investment within the framework of the offer to be able to benefit from the aforementioned tax concession, SCOPE Pictures, the investor and the film must meet a certain number of conditions (FILM approved, minimum expenditure in Belgium, FILM’s method of funding, etc.)

It is up to each potential investor to verify that they possess sufficient taxable profit reserves to be able to take advantage of the tax concession which they may claim as a result of the investment they might make within the framework of the SCOPE Invest offer.