Information about http://pch.gc.ca/progs/ac-ca/progs/fmusc-cmusf/VEM-MEC/2007-08/MEC_app_form_e.pdf
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Tags: address line, applicant id, applicant name, application deadline, application form, application guide, canada music, city province, code web, department of canadian heritage, digit number, fund application, line 1, mr mrs ms, music entrepreneur, music fund, name and address, november 1, preferred language, salutation,Pages: 19
Language: english
Created: Fri Sep 15 10:25:45 2006
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PROTECTED ONCE COMPLETED
MUSIC ENTREPRENEUR COMPONENT
AID TO CANADIAN SOUND RECORDING FIRMS
Application Form 2007-08
CANADA MUSIC FUND
Application deadline: November 1, 2006
Read the Music Entrepreneur Component (MEC) Application Guide thoroughly before completing this application form.
For assistance, call toll free 1 866 686-1102.
Applicant ID Number
To be completed by the Department of Canadian Heritage.
APPLICANT IDENTIFICATION
1. Applicant name and address
Legal name of applicant
Trade name
Address (line 1)
Address (line 2)
City
Province
Postal code
Web site
2. Official contact
The "official contact" is the owner or president of the applicant's sound recording firm. The application form must be signed by this person, unless a
statement authorizing someone else to sign is provided. If the application is successful, we will send the contribution agreement to this person.
First name
Last name
Salutation (Mr., Mrs., Ms., other)
Title
Telephone Ext.
Enter a 10 - digit number
Fax
Enter a 10 - digit number
Email
Preferred language of communication
E: English F: French
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
APPLICANT IDENTIFICATION
3. Application contact
The "application contact" is the person responsible for completing this application form and the person in the applicant's firm most familiar with its
contents. We will contact this person first if we require further information. (The official and application contacts can be the same person.)
First name
Last name
Salutation (Mr., Mrs., Ms., other)
Title
Telephone Ext.
Enter a 10 - digit number
Fax
Enter a 10 - digit number
Email
Preferred language of communication
E: English F: French
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
APPLICANT INFORMATION
4. Organization type and status
Establishment date
Enter the date that the applicant began business as a sound recording firm (dd-mm-yyyy).
Business status
1: Sole proprietorship 2: Partnership 3: Privately held corporation 4: Publicly traded corporation
Incorporation information
1: Federal 2: Provincial
Corporate registration number
Date of incorporation (dd-mm-yyyy)
Business number or GST/HST number
Company headquarters
City
Province
Country
5. Ownership and control
State name of company to which the following table pertains.
Shares by class of share
For more than five classes of shares, provide additional information on a separate sheet.
Number of authorized Par value of issued Number of voting
Class of shares shares Number of issued shares shares shares*
1
2
3
4
5
*Carrying voting rights exercisable under all circumstances.
Shareholders and owners
For citizenship use CAN (Canada), USA (United States), GBR (United Kingdom), FRA (France), 999 (other).
For more than ten shareholders, provide additional information on a separate sheet.
Number of
Name City Country Citizenship voting shares
1
2
3
4
5
6
7
8
9
10
Note: If shareholder is a corporation, attach an identical table for that corporation. Please provide a similar table for all
classes of shares.
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
APPLICANT INFORMATION
Affiliated companies
A group of companies in which the same person, or group of persons, holds the majority of shares with full voting rights or has been shown to
have control in fact of these companies.
For more than five affiliated companies, provide additional information on a separate sheet.
Also applying to MEC this year. Enter an "x" for
each applicable box.
Name Yes No GST number
1
2
3
4
5
Directors and officers
Directors : date of Officers :
Name Address Citizenship appointment position held
1
2
3
4
5
6. Association memberships
Enter an "x" for each applicable box.
ADISQ--Association québécoise de l'industrie du disque, du spectacle et de la vidéo
CIRPA--Canadian Independent Record Production Association
CRIA--Canadian Recording Industry Association
Other (Specify)
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
APPLICANT INFORMATION
7. Employees
On the last day of the reference period
Full-time employees Full-time employees based in Canada
Part-time employees Part-time employees based in Canada
8. In-house operations
Enter an "x" for each applicable box.
Production
Distribution
Promotion
Publishing
Tour booking
Artist management
Merchandising
Concert production
Retail
Recording studio
Manufacturing
Video production
Other (specify) ______________________
Other (specify) ______________________
Other (specify) ______________________
What was the applicant's principle activity in the reference period (based on
revenues)?
9. Financial statements
Enter the starting and ending dates of the financial statements included with this application. Applicants must submit financial statements for
the three most recently completed financial years. The most recently completed financial year must end no earlier than June 30, 2005. Refer
to section 2.6 in the MEC Application Guide for more information.
Most recent year to
to
to
The dates must be entered in the following format: dd-mm-yyyy.
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
ARTIST ROSTER AND SOUND RECORDING INFORMATION
10. Artist and distributors information
Number of artists under contract on the sound recording firm's -Canadian artists
roster on the last day of the reference period
-Foreign artists
Total number of artists
List of your distributors, for both physical and electronic 1._________________________________________
distribution, for the Canadian and foreign markets. 2._________________________________________
3._________________________________________
4._________________________________________
11. Sound recording production--new releases
In the following tables, the applicant must include information on eligible and ineligible sound recordings it released in the reference
period. Refer to section 2.4 in the MEC Application Guide for definitions on eligible and ineligible sound recordings. Use the following
classifications to complete the tables. Each table represents one year in the reference period. Information in these tables will be
used to determine if the applicant meets the "Production Minimum" eligibility criteria. Please submit information on additional sheets
if more space is required.
Type of production
Canadian artist--produced -1
Canadian artist--licensed -2
Foreign artist--produced -3
Foreign artist--licensed -4
Canadian artist--co-produced -5
Foreign artist--co-produced -6
Format
Indicate all applicable formats for each release.
Full-length albums--physical -1
Full-length albums--download -2
Singles--physical -3
Singles--download -4
SACD -5
DVD audio -6
DVD video -7
Other -Specify
Live / compilation / greatest hits
Live sound recording -1
Compilation -2
Greatest hits / re-release -3
Claimed as eligible release
Yes Y
No N
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
ARTIST ROSTER AND SOUND RECORDING INFORMATION
11. Sound recording production--new releases
Sound Recordings Released Between July 1, 2003, and June 30, 2004
Claimed
Live / as
Type of
Artist Title Format compilation / eligible
production
greatest hits new
release
Total number of new releases claimed as eligible in this year of the reference period
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
ARTIST ROSTER AND SOUND RECORDING INFORMATION
11. Sound recording production--new releases
Sound Recordings Released Between July 1, 2004, and June 30, 2005
Claimed
Live / as
Type of
Artist Title Format compilation / eligible
production
greatest hits new
release
Total number of new releases claimed as eligible in this year of the reference period
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
ARTIST ROSTER AND SOUND RECORDING INFORMATION
11. Sound recording production--new releases
Sound Recordings Released Between July 1, 2005, and June 30, 2006
Claimed
Live / as
Type of
Artist Title Format compilation / eligible
production
greatest hits new
release
Total number of new releases claimed as eligible in this year of the reference period
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
SOUND RECORDING SALES
12. Breakdown of sales (in units)
This section collects information on the applicant's unit sales in the reference period. Amounts in each category must reflect actual net unit sales (after returns), not estimates. Net unit
sales of Canadian sound recordings funded by FACTOR/Musicaction and approved after March 31, 2006 should be reported at 0.7 of their total sales. MEC officials will adjust the unit sales
amounts according to the specifications in the MEC Application Guide (i.e. 1 DVD video = 2 units). MEC performs audits every year and the qualified applicants are required to provide
evidence to support how their sound recordings were categorized. Refer to section 2.4 in the MEC Application Guide for definitions on eligible and ineligible sound recordings.
a) NET SALES OF ELIGIBLE SOUND RECORDINGS IN UNITS
a-1 Sound recordings--produced / co-produced Domestic Sales (in units) International Sales (in units)
Include all unit sales for eligible sound recordings that
were produced by the applicant. For a co-production the July 1, 2003June July 1, 2004June July 1, 2005June July 1, 2003June July 1, 2004June July 1, 2005June Total
unit sales amount must reflect the split established in the 30, 2004 30, 2005 30, 2006 30, 2004 30, 2005 30, 2006
co-production agreement.
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
Total net sales of eligible sound
recordings--produced (in units)
a-2 Sound recordings--licensed Domestic Sales (in units) International Sales (in units)
Include all unit sales for eligible sound recordings that July 1, 2003June July 1, 2004June July 1, 2005June July 1, 2003June July 1, 2004June July 1, 2005June Total
were licensed to the applicant. 30, 2004 30, 2005 30, 2006 30, 2004 30, 2005 30, 2006
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
Total net sales of eligible sound recordings--licensed
(in units)
Total net sales of eligible sound
a-3 recordings--produced + licensed (in units)
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
SOUND RECORDING SALES
b) NET SALES OF INELIGIBLE SOUND RECORDINGS IN UNITS
Domestic Sales (in units) International Sales (in units)
July 1, 2003June July 1, 2004June July 1, 2005June July 1, 2003June July 1, 2004June July 1, 2005June Total
30, 2004 30, 2005 30, 2006 30, 2004 30, 2005 30, 2006
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
Total net sales of ineligible sound recordings (in units)
c) TOTAL NET SALES OF SOUND RECORDINGS IN UNITS
Domestic Sales (in units) International Sales (in units)
July 1, 2003June July 1, 2004June July 1, 2005June July 1, 2003June July 1, 2004June July 1, 2005June Total
30, 2004 30, 2005 30, 2006 30, 2004 30, 2005 30, 2006
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
TOTAL
d) TOTAL NEW RELEASES AND UNIT SALES OF SOUND RECORDINGS BY SHAREHOLDERS OR OWNERS
Number of new sound recordings released in the reference period by songwriters or performers who are shareholders or owners
Unit sales of sound recordings in the reference period by songwriters or performers who are shareholders or owners
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
NET REVENUES
13. Net revenues
The following sections collect financial information in the applicant's three most recently completed financial years. Amounts in each category must
reflect actual revenues as reflected in financial statements, not estimates. MEC performs audits every year and qualified applicants are required to
provide evidence to support how their sound recordings were categorized.
Most recent
completed fiscal
year
a) NET SALES OF ELIGIBLE SOUND RECORDINGS (PRODUCED AND LICENSED)
YEAR 1 YEAR 2 YEAR 3
Eligible sound recordings--produced/co-produced ($) ($) ($)
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
Total net sales of eligible sound recordings--produced
Eligible sound recordings--licensed
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
Total net sales of eligible sound recordings--licensed
b) NET SALES OF INELIGIBLE SOUND RECORDINGS (PRODUCED AND LICENSED)
Full-length albums--physical
Full-length albums--download
Singles--physical
Singles--download
Other formats (SACD, DVD audio, other)
DVD video
Total net sales of ineligible sound recordings
c) OTHER REVENUES
Artist management fees
Distribution income for others
Publishing income
Concert production
Other revenues (specify: ______________________)
Total other revenues
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
NET REVENUES
d) GRANTS AND CONTRIBUTIONS
YEAR 1 YEAR 2 YEAR 3
Canada Music Fund ($) ($) ($)
Telefilm (Music Entrepreneur Program)
Music Entrepreneur Component
FACTOR
Musicaction
Canada Council for the Arts (Musical Diversity Component)
Other CMF (_______________________)
Other grants and contributions
Radio Starmaker
Fonds RadioStar
Canada Council for the Arts (non-CMF)
Provincial programs (specify: ______________________)
Tax credits (specify: ______________________)
Other (specify: ______________________)
Total grants and contributions
Total net revenue
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
EXPENSES AND PROFIT
Most recent
completed fiscal year
14. Gross profit Year 1 Year 2 Year 3
Cost of sales ($) ($) ($)
Opening inventory (including work in progress)
Plus: direct costs (creation, production, manufacturing, etc.) +
Minus: closing inventory -
Plus: royalty expenses following sale of sound recordings +
Total cost of sound recordings sold
Plus: cost of other products +
Total cost of sales
Gross profit (total net revenue minus cost of sales)
15. Operating expenses
Marketing and promotion
Bad debts
Distribution
Other operating expenditures (note: if greater than 15% of total,
provide details on separate sheet)
Total operating expenses
16. Earnings before interest, taxes, depreciation and
amortization (EBITDA)
17. Interest expense
18. Depreciation and amortization
19. Pre-tax profit (loss)
20. Net income (loss)
Income taxes
Extraordinary gains/losses (net of income taxes)
Net income (loss)
21. Retained earnings or owner's equity
Retained earnings or owners' equity, beginning of year
Plus: net income (loss) +
Plus or minus: prior years' adjustments + or -
Minus: dividends declared/withdrawals -
Retained earnings or owners' equity at year end
22. EBITDA margin % (EBITDA divided by total net
revenues )
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
BALANCE SHEET
Most recent
completed fiscal year
Year 1 Year 2 Year 3
23. Assets ($) ($) ($)
Current assets
Cash, securities, and deposits
Accounts receivables (net)
Grants and contributions receivable (net)
Inventory
Deferred costs, including work in progress
Prepaid royalties and advances
Other (specify: ________________________)
Total current assets
Other assets
Fixed assets (net)
Investments in and advances to affiliates
Other (specify: ________________________)
Total other assets
Total assets
24. Liabilities and equity
Short-term liabilities
Due to shareholders or owners
Bank indebtedness and other short-term loans payable
Royalties payable
Accounts and income taxes payable
Current portion of long-term liabilities
Deferred revenue from grants and contributions
Other (specify: ________________________)
Total short-term liabilities
Long-term liabilities
Due to shareholders or owners
Mortgages and other long-term liabilities
Other (specify: ________________________)
Total long-term liabilities
Total liabilities
Equity
Share capital issued and paid
Contributed surplus
Retained earnings
Total equity
Total liabilities and equity
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
TANGIBLE NET WORTH
25. Tangible net worth
In the event that any of the applicant's short-term and/or long-term liabilities is secured by pledging a specific asset owned by a related party to the applicant (e.g. shareholder), please
provide the following information:
a. A description of the applicant's liability that is secured by a pledged asset other than the applicant's assets;
b. The amount of the applicant's liability as per the applicant's balance sheet;
c. Name of the owner of the pledged asset;
d. Relationship to the applicant of such owner, from the applicant's perspective [e.g. shareholder, sister-corporation, etc.]
e. Detailed description of the pledged asset; and
f. Best estimate of the value of the pledged asset;
Please use the table below to provide the required information:
a. Description of Liability (Note 1) b. Amount of c. Owner of Pledged d. Relationship of Owner e. Description of Pledged f. Value of Pledged
Liability (Note 1) Asset of Pledged Asset to Asset (Note 2) Asset (Note 2)
Applicant
Note 1: This liability appears on the applicant's balance sheet.
Note 2: This asset does not appear on the applicant's balance sheet.
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
BUSINESS PLAN
You must use the headings listed below on this page and provide all the requested documentation
DESCRIPTION OF THE APPLICANT
History of the applicant
Specialization of the applicant
Developments over the past three years (i.e. new investments, successes, difficulties)
SHORT-TERM OPERATIONAL PLAN (for the next 12 months)
Sound recording production strategy
Human resources action plan
Marketing strategy (i.e. development of new national and international markets, e-commerce)
Financial situation
Please provide an analysis of the financial situation of your company. For firms reporting a negative profit margin in the most recently
completed fiscal year, indicate plans to improve profitability. Describe the concrete actions that have been or will be taken to address the
situation during the next year (financing, marketing, production activity, human resources, etc.). A detailed response is essential to evaluate
the financial viability of the firm.
LONG-TERM OPERATIONAL PLAN (for the next three years)
Sound recording and marketing strategies as well as expected results
Financial forecast (i.e. revenues, profits, investments)
FORECASTED USE OF REQUESTED FINANCIAL ASSISTANCE
Indicate the forecasted use and expected results of the requested MEC--Aid to Canadian Sound Recording Firms financial assistance.
COMPONENT OBJECTIVE
Provide a statement on how the activities of your sound recording firm contribute to the achievement of the principal objective of the
MEC--Aid to Canadian Sound Recording Firms component, which is "to ensure that Canadian music entrepreneurs contribute to the
Canadian musical experience over the long-term via a diverse range of compelling Canadian musical choices, become increasingly
competitive at the national and international level, and position themselves for success in a digitized global economy."
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
MEC--AID TO CANADIAN SOUND RECORDING FIRMS APPLICATION CHECKLIST
This checklist describes the documentation that is required for a complete application. All items on this list must be included to process the
application. Please check each box.
Completed application form
Business plan
In a separate document, please provide a current business plan for the applicant's firm. For a description of what type of information the
plan should provide, please refer to the previous page.
Financial statements
These must cover the applicant's three most recent fiscal years. Refer to section 2.6 in the MEC Application Guide for more information.
List of artists on roster
In a separate document, provide a list of all artists on the applicant's roster on the last day of the reference period. It must include the
name of the artist, citizenship, date of signing and the contract's end date.
Sales of eligible sound recordings
Use the template titled "Sales of Eligible Sound Recordings" found at www.pch.gc.ca/cmf-music to enter complete information for every
sound recording claimed in eligible sales in sections 12a-1 and 12a-2 of this application form. Please follow the appropriate links to reach
the MEC section of the Web site.
Contracts for sound recordings produced, co-produced or licensed
Applicants must include a copy of contracts pertaining to the production, co-production or licensing of Canadian sound recordings that
make them qualify for the 10 points production minimum criteria (new releases) described in section 2.2 of the applicant guide. These
contracts must be current and signed by both parties. Companies may black-out all confidential financial information.
Verification of legal deposit
Applicants must include a copy of the "Receipt for Legal Deposit" provided by Library and Archives Canada for all applicable sound
recordings. If the applicant does not have the necessary documentation for all applicable sound recordings, it will be required to submit it
before receiving final payment from MEC. Applicants do not have to re-submit a copy of the receipts already submitted to the MEC
during a previous application.
Sample of eligible sound recordings
Applicants must include one copy of all eligible sound recordings released during the reference period.
Applicants do not have to re-submit a copy of sound recordings already submitted to the MEC during a previous application.
Letter from the president or the owner authorizing submission of the application
This letter must be provided if the president or owner does not sign the application form.
Corporate documentation
File a copy of each of the following documents. If not applicable, check N/A. Unless some changes occurred in the coporate
documentation, applicants do not have to re-submit the information already submitted during a previous application.
Letters patent
Supplementary letters patent
By-laws
Shareholder agreement(s)
Special resolutions
Conflict of interest policy or guidelines
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08
WARRANTIES AND AGREEMENTS
The undersigned applicant to the MEC--Aid to Canadian Sound Recording Firms.
1) attests that the applicant has read the MEC--Aid to Canadian Sound Recording Firms Application Guide and undertakes to
comply with the conditions and terms set forth therein;
2) affirms that the information in this application and the attached documents is accurate and complete; the applicant will reimburse
all the amounts paid by the Department through MEC--Aid To Canadian Sound Recording Firms if it is demonstrated that false
information was submitted in this application and may be declared ineligible for MEC--Aid to Canadian Sound Recording Firms for
the two following years;
3) agrees that once funding is provided, any change to the proposal will require prior approval of the Department; agrees to publicly
acknowledge funding and assistance by the Department, in accordance with the terms of the contribution agreement; agrees to
submit reports and financial accounting for evaluation of the activity funded by the Department; understands that the information
provided in this application may be accessible under the Access to Information Act ; agrees to respect the spirit and intent of the
various acts governing the programs of the Department of Canadian Heritage;
4) agrees to submit a copy of all relevant agreements and contracts, as well as all information and additional documents that could
help the Department of Canadian Heritage determine who owns and controls the firm;
5) will cooperate with any future evaluation of MEC--Aid to Canadian Sound Recording Firms, participate in the Sound Recording
Survey conducted by Statistics Canada, and must agree to participate in research studies created and funded by the Department of
Canadian Heritage;
6) will allow the Department access to the applicant's books and files to confirm or have confirmed the accuracy of the statements
made, the information provided in this application or the intended use of the contributions provided, and undertakes to reimburse any
amount shown by an audit to have been paid in excess or to which the applicants had no claims under the terms of MEC--Aid to
Canadian Sound Recording Firms;
7) guarantees that at the time of filing out this application, the firm is neither in default nor in arrears in the payment of royalties due to
artists or to their representative under the terms of agreements signed with them; the applicant also undertakes to inform MEC--Aid
to Canadian Sound Recording Firms of any dispute recently resolved or not yet resolved in which the applicant is directly or indirectly
involved, and whose resolution could have an impact on its eligibility for the component, its right to financial assistance or the
calculation of financial assistance;
8) authorizes the Department of Canadian Heritage to forward to FACTOR and/or MUSICACTION or to obtain from them any
relevant information including the present funding application for the purpose of review of the present application and the
administration of MEC--Aid to Canadian Sound Recording Firms. The applicant understands that this authorization includes
information conveyed to the Department of Canadian Heritage with regard to any other program administered by the Department,
before or after this application is submitted;
9) is willing to provide any assistance required to prepare a public announcement by the Minister of Canadian Heritage, if necessary.
Authorized officer Witness
Name Name
Title Signature
Signature
Date
MEC--AID TO CANADIAN SOUND RECORDING FIRMS 2007-08