Script Option Agreement Template

There is no strict and quick rule on fees that are due for an option agreement. As far as the rate structure is concerned, you first pay an “option fee” for the “option period.” This is the money you pay for the exclusive right to develop your project based on the author`s content for a specified period, the option period. It is difficult to give Ballpark characters because they are very different from one deal to another. In short, if no film is adapted by your screenplay, you will receive the rights back… But you may have no idea of their true value after your work has been exploited by a third party. Of course. That could mean that. However, option agreements are sometimes signed so that a producer or production company can only present your work to one or two target parties. And if these parts are in place, your script is in a folder cabinet until the duration of your option expires (and this can range from one year to five…

or more). If no film adapted by your script is produced during the duration of your option contract, the contract expires and the rights will be returned to you. This is the real selling point that most producers and production companies use to reject an “option” on you rather than on a purchase. Download (Screenplay Option Agreement.docx) and use this checklist when negotiating a scenario option agreement to help you reach agreement on important issues. Flip this Word document with the details to make it easier to write your agreements. The purchase price is a one-time payment to the original rights holder, which will probably be part of the budget you find to make the film. It is usually payable about the first day of the main photography. The difficulty for you as a producer is that if you negotiate an option contract, you don`t know how much you can pay the rights holder. As a result, the purchase price is often expressed as a percentage of the final budget – often with a “ceiling” and a “land” that guarantees that the author receives a certain amount, but no more than the agreed ceiling. As I said, this is often said: “equal [] % of the budget, the purchase price being a minimum of X and a maximum of Y.” Option agreements can be a win-win situation for both the author and the producer. The author is paid to pay for his scripts for a limited time, while the producer tries to get the green light for the project.

If it happens, it`s great. The author will receive a nice purchase price for all this hard work. If this is not the case during the option period, the author retains the Payment option and all script rights will be restored. The author could then decide to leave the script to another producer. You also need to remember the secondary rights that we talked about earlier. If you create a spin-off of your project, the author also wants a share of these gains. The net participation of these ancillary projects is generally less than the net share of the original`s profits. It is essential to agree on this point at the beginning.

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