Right, your friend experienced what normally happens. This will be my third option, I know how these things usually go (not so good). However, this is the first one with a signatory and real solid producer. They have the means and a great track-record. My fingers are crossed.
I signed the option!
- Thread starter alveraz
- Start date
Right, your friend experienced what normally happens. This will be my third option, I know how these things usually go (not so good). However, this is the first one with a signatory and real solid producer. They have the means and a great track-record. My fingers are crossed.
Cool. Surprised I am right actually. Just don't let your lawyer charge you extra for that bit
There's no extra charges, and I'm not 100% positive it wasn't added in the second round of negotiations, but it looks as if it was already part of the contract from what I can tell. Neither here nor there really, it all looks good to me and my attorney is excellent. Not to mention, these producers have been really open, honest and helpful so far. They have communicated every step with me and answer all my dumb questions, pretty patient folks who actually have the writer's best interest at heart (for a change).
yeah it's awesome for you, I'm sure well deserved, and well sacrificed for
my GF, our credit cards, and I are sorely in need of a "score" like this down the road.
my GF, our credit cards, and I are sorely in need of a "score" like this down the road.
BTW, what the hell is your avatar from?
ConspiracyPenguin
Nosey Penguin
Congrats! I wish I could get six figures for a script. I guess I should get my work out there more. How long is the screenplay?
EJ Pennypacker
Well-known member
Congrats Alverez! Great work!
EJ
EJ
DChang
Well-known member
Congratulations. Just making sure I understand this, you got a script option, for six figures and if it gets made you get 5% of the budget? So theyre paying you six figures for the option or only if it gets made? Did you deal send your script out to be read or have someone/service do it for you?
The six figures would be the 5% of the budget if they exercise the option within 90 days. The budget is between 1.5-3mil. So my lowest purchase price would be 75K.
I can't answer the last part of your question because I don't understand what you are asking.
Thanks guys.
Alvarez,
He was probably asking if you'd paid or had someone do coverage / analysis for your screenplay prior to shopping it. Also, did you get any up-front on this? Ninety days isn't a lot of time to get traction on something, even for a well-connected packaging agent / producer.
The option fee would be somewhere around 10% of the total option price. In your case, the low end fee would be $7.5k up front. If the option period expires, the property reverts back to the author, and the up-front is your's to keep.
It isn't unheard of to grant free option when you're starting out or working with independent producers, but you don't want your work tied up indefinitely - especially on speculation. There is nothing more speculative than a free option. Just a few more observations on this point. If they wish to extend the option period, there should be a fee paid to you each time they do so. While the first option fee might be applied against the larger purchase price, it is customary for the secondary and subsequent extensions to be above and beyond the originally negotiated purchase price - regardless of whether the first option fee has been applied to the full deal.
Also, in a free option, it is customary for you to have a bonus if they are able to set the show up within the original option period. This is a good faith kind of arrangement. You've let them work the property for free, but as soon as they have a deal, you start to recognize some revenue.
Studios rarely do free options, but their set-up periods typically run much longer than 90 days. Therefore, your project is tied up for perhaps years, but you've been compensated for this period. Clauses like reversion give the author the ability to buy back the property
e
He was probably asking if you'd paid or had someone do coverage / analysis for your screenplay prior to shopping it. Also, did you get any up-front on this? Ninety days isn't a lot of time to get traction on something, even for a well-connected packaging agent / producer.
The option fee would be somewhere around 10% of the total option price. In your case, the low end fee would be $7.5k up front. If the option period expires, the property reverts back to the author, and the up-front is your's to keep.
It isn't unheard of to grant free option when you're starting out or working with independent producers, but you don't want your work tied up indefinitely - especially on speculation. There is nothing more speculative than a free option. Just a few more observations on this point. If they wish to extend the option period, there should be a fee paid to you each time they do so. While the first option fee might be applied against the larger purchase price, it is customary for the secondary and subsequent extensions to be above and beyond the originally negotiated purchase price - regardless of whether the first option fee has been applied to the full deal.
Also, in a free option, it is customary for you to have a bonus if they are able to set the show up within the original option period. This is a good faith kind of arrangement. You've let them work the property for free, but as soon as they have a deal, you start to recognize some revenue.
Studios rarely do free options, but their set-up periods typically run much longer than 90 days. Therefore, your project is tied up for perhaps years, but you've been compensated for this period. Clauses like reversion give the author the ability to buy back the property
e
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There was coverage at a couple studios done, and a few producers had it covered as well. As for the option fee I ended up with a couple grand in a re-up clause for another 90 days if the need it.
As for the short period of time, yes, 90 days is very unorthodox, but they already have things in motion from what I understand and did not need a full 6 months or year option. I've seen this before with a couple other colleagues, so it's not unheard of.
We'll see what happens
As for the short period of time, yes, 90 days is very unorthodox, but they already have things in motion from what I understand and did not need a full 6 months or year option. I've seen this before with a couple other colleagues, so it's not unheard of.
We'll see what happens
There was coverage at a couple studios done, and a few producers had it covered as well. As for the option fee I ended up with a couple grand in a re-up clause for another 90 days if the need it.
As for the short period of time, yes, 90 days is very unorthodox, but they already have things in motion from what I understand and did not need a full 6 months or year option. I've seen this before with a couple other colleagues, so it's not unheard of.
We'll see what happens
Ah, yes! So effectively, you're in a free option with a 2.5% (give or take) set-up bonus clause. Let us know how it turns out!
e
Thanks for sharing this information - you don't have to. It is a good thing for this community to have someone share their experience from the writer's perspective.
Unless you have a lit agent who deals specifically in the sales process for filmed entertainment, the process can be really murky for writers just getting into this side of the business.
e
Unless you have a lit agent who deals specifically in the sales process for filmed entertainment, the process can be really murky for writers just getting into this side of the business.
e
Yeah, I was hesitant sharing the info in forums, but then I was like, man, I wish someone told me about this stuff when I first started. Unfortunately most are tight lipped about this and just bail out when it gets juicy. I have no problem sharing info until my lawyer tells me to shut up, which will be soon I'm sure 
I have a Manager coming on board this week to help me with the brokering process, so that may shut me down too, especially if a non-disclosure clause gets in there somewhere. Once anything interesting comes up I'll share it in here. As of now, it's just the waiting game.
Thanks again guys.
I have a Manager coming on board this week to help me with the brokering process, so that may shut me down too, especially if a non-disclosure clause gets in there somewhere. Once anything interesting comes up I'll share it in here. As of now, it's just the waiting game.
Thanks again guys.
El Gato Negro
Well-known member
congrats man. did you get the option through a screenwriting competition? or through an agent?