Proposal for Option!

[Mister Brett]

I got a phone call today from a producer of a boutique production company. This person loved my script and my writing. We both connected as well and I was impressed with their strategic thinking.

They offered an option for the script I submitted to them, an independent feature. They said it would be a 'zero down' option, so they could shop it around to their network of possible investors and bigger production companies who would also be interested in producing.

Is this normal? Any advice.


MB.

[LIMAMA]

Zero down? Oh, this must be a new way to say FREE OPTION. I go by what a sage screenwriting pro advised: if they don't have the clout to pony up some dough, they have no clout. I speak from experience.

[Hairy Lime]

If you make sure it's a non-exclusive option, you've got nothing to lose. If it's non-exclusive, you're only giving them persmission to shop it around while you continue to query with it elsewhere. Especially if you've found them pleasant to work with. Nothing wrong with taking a chance on an up and coming producer when he's willing to take a chance on you, especially if you're not losing the freedom to shop the script yourself.

I speak as both an aspiring writer and an aspiring producer.

[winteredge]

I have a similar arrangement with an up and coming producer myself. We agree that they can shop my script around while I do so on my end. I still hold all the rights and call the shots.

Just make sure you get a timeframe on this, i.e. both parties agree to this arrangement for x amount of months, weeks, etc. At the end of the timeframe, if you don't see any results, you are free to move on, esp. since there's no money involved at least on their side.

[Mister Brett]

A 'Non-Exclusive Option' does sound more appropriate. This producer, who was recognized at Sundance for previous work, has three films slated for production this year, in which one is listed as 'in production' on IMDB.com. Since they only have the funding for those three films, they can't afford an option price. I will confer with them about this matter.

Thanks,

MB.

[BROUGHCUT]

I speak as both an aspiring writer and an aspiring producer.

ditto. However, they do have something to lose if this company takes it in to other "larger" production companies (or studios) and they are attached to produce.

I don't think options should be given away. Non-exclusive options still stipulate the price and terms of a sale, so if one of these larger companies agreed to finance the script, you may get less for it than you otherwise might have been offered.

If there is no money on the table, then an actual shopping agreement would be more appropriate.

[Mister Brett]

I'd like to thank everyone for their great advice on this matter. I talked with the producer and we both agree that a 'non-exclusive option' would be the best for the both of us at this time.

You guys rock! 8)

MB.

[Ivylilly]

First of all, there is no such thing as a free option. He HAS to give you a check (even if the check is for $1) without it the option is not valid. This is the first thing you learn in film school, and if he does not know that, he is an amateur producer. Now, about that "shopping" deal. Not only do you have to make sure that it is a non-exclusive option, you also have to determine the list of people the script will go to in advance. Once the script is passed on, you can never go back to that place with the same script. It will become an obstacle if you ever decide to get an agent or a manager with that script because each time a script is passed on, its value diminishes drastically (contrary to what many newbies and mateurs think). The first thing an established prodco asks is who's seen the script. It is in your interest to make sure that the company that's sending it out has enough clout to support it and doesn't just paper the streets of LA with it.

[Mister Brett]

Sheesh... sounds like I should start hunting for an Entertainment Attorney in L.A.

[LIMAMA]

The hills of Hollywood are littered with the dry, dusty bones of "free option" deals. Don't let your script become one of them.

[BROUGHCUT]

Shopping agreements don't have to be part of an option deal. They can be granted for free and are enforced by the MBA (if the company is a signatory).

Why consider a 'non-exclusive' $1 option if you can arrange a shopping agreement?