Should there be an option agreement?

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  • Should there be an option agreement?

    A producer has had a script of mine for years with no option - since I like him and he's passionate I decided to just let him run with it. Just recently, he managed to get an established director attached who has a deal with Fox Studios, and the director is planning to try to get funding. However, it's now been about 3 weeks since the producer mentioned this director coming on board and there's been no mention of an option agreement of any kind. The producer seems convinced it will get sold and doesn't feel an option is necessary at this point for that reason. After all he's already had it for a few years with no agreement.

    Just curious to get people's opinion: should there be an option in place now or should I just leave it?

  • #2
    Re: Should there be an option agreement?

    Don't mean to piggyback, grumpy, but my question may also be of interest to you.

    If an option does come into place here, and the script sells, is the option $ deducted from the sale $ ?

    Thanks. And good luck, grumpy.

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    • #3
      Re: Should there be an option agreement?

      Originally posted by grumpywriter View Post
      A producer has had a script of mine for years with no option - since I like him and he's passionate I decided to just let him run with it. Just recently, he managed to get an established director attached who has a deal with Fox Studios, and the director is planning to try to get funding. However, it's now been about 3 weeks since the producer mentioned this director coming on board and there's been no mention of an option agreement of any kind. The producer seems convinced it will get sold and doesn't feel an option is necessary at this point for that reason. After all he's already had it for a few years with no agreement.

      Just curious to get people's opinion: should there be an option in place now or should I just leave it?
      There should have been an option agreement all along if the producer was really smart about it. This is all on them, and not you. You could easily walk away from all of this since there is no legal agreement, so they should be worried not you, to be honest.

      At this point, I'd probably just say leave it. IF and when they come back with the money, then you can (reasonably & professionally) make whatever demands you want since nothing was put in place to begin with.

      Hopefully though, you have not passed up any other opportunities along the way and are fine with this person slowly trying to put all this together.
      Last edited by Done Deal Pro; 05-09-2017, 09:25 AM.
      Will
      Done Deal Pro
      www.donedealpro.com

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      • #4
        Re: Should there be an option agreement?

        Originally posted by Nostalgialover View Post
        Don't mean to piggyback, grumpy, but my question may also be of interest to you.

        If an option does come into place here, and the script sells, is the option $ deducted from the sale $ ?

        Thanks. And good luck, grumpy.
        Depends on the option agreement. There can be phrasing in which they will pay you the purchase price less the option money already paid. It could be something along the lines of "the option price is 'against' the purchase price." It's up to them to put that wording in the contract stipulating that or for you to ask that be taken out, etc.
        Will
        Done Deal Pro
        www.donedealpro.com

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        • #5
          Re: Should there be an option agreement?

          Thanks, Will

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          • #6
            Re: Should there be an option agreement?

            Originally posted by grumpywriter View Post

            Just curious to get people's opinion: should there be an option in place now or should I just leave it?
            Well, look, the absence of an option agreement probably helps you, at this point.

            That's why producers like them. They set a purchase price, and prevent you from selling the script out from under them. That set purchase price is usually better for them. (e.g., the big sales happen because a bidding war starts. Let's say they attach Will Smith to your script. Suddenly everybody wants it, and you get to decide who gets it - hopefully money won't be the only consideration, but it'll probably be one of them. However, if you had an option agreement, the sales price would already be set and you couldn't take advantage of that situation, and the producer would decide where the script ended up).

            So by agreeing to an option agreement, the producer is giving you something now (money!) in exchange for being in control of all of those elements later, if he does find a buyer.

            Also, traditional options are pretty rare these days.

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