icebreaker3d
Junior Member
What is the name of your state (only U.S. law)? CA
I am Independent film producer, who has recently been asked to come onto a theatrical film project that is about to presented to a group of investors who are interested in providing the development funds. After reading the script (and as a favor to the Director attached, a good friend of mine), I agree to aid in producing the project. I asked for all of the contracts and documents related to said project. Upon getting the stack, I noticed that there are two (yes, 2) Option Agreements for the same script.
The first was an Option Agreement (signed in May of 2013) between the Director & the writer. It stated that the writer would receive $0 (instead of the usual 10% down), known as the "Free Option Period" for 1 year. Once the year is up, it enters into the "Option Period" for an additional 12 months, for $0. Then finally an additional "Second Option Period" for another $0, for another 12 months.
Section 2 of the Option also states that the purchase price is $0. I am fully aware that this Option is the most idiotic thing ever signed in existence, but that's the least of my problems. [side note: this was the writers first time selling a script & this was the Directors first time optioning one, he is not a producer]
After the director shopped it around, a producer liked it and agreed to help him produce the project. This producer also created a 2nd Option Agreement (in September of 2013), that he had the Director (now "producer"), the writer and himself sign; under their production companies.
While Option #1 gives the writer not even a penny for his hard work, Option #2 gives the writer WAY too much for his script. We are talking over $75,000 in compensation, plus 33% of all profits on the film (including theatrical). After seeing this, it is obvious to me that the Producer has lost his mind.
My question is..
Is the 2nd Option valid, even if it didn't state that the first option was invalid, because both parties from Option #1 signed Option #2?
Secondly, the Producer & the Director (now, "producer") list in the Option that their production companies are partnering together on the project. I know for fact that at least one of their companies is not "legal" at this moment (no paperwork has been filed). Is it legal sign on behalf of a company that hasn't been created yet? Can that make Option 2, invalid?
Thanks in advance!
I am Independent film producer, who has recently been asked to come onto a theatrical film project that is about to presented to a group of investors who are interested in providing the development funds. After reading the script (and as a favor to the Director attached, a good friend of mine), I agree to aid in producing the project. I asked for all of the contracts and documents related to said project. Upon getting the stack, I noticed that there are two (yes, 2) Option Agreements for the same script.
The first was an Option Agreement (signed in May of 2013) between the Director & the writer. It stated that the writer would receive $0 (instead of the usual 10% down), known as the "Free Option Period" for 1 year. Once the year is up, it enters into the "Option Period" for an additional 12 months, for $0. Then finally an additional "Second Option Period" for another $0, for another 12 months.
Section 2 of the Option also states that the purchase price is $0. I am fully aware that this Option is the most idiotic thing ever signed in existence, but that's the least of my problems. [side note: this was the writers first time selling a script & this was the Directors first time optioning one, he is not a producer]
After the director shopped it around, a producer liked it and agreed to help him produce the project. This producer also created a 2nd Option Agreement (in September of 2013), that he had the Director (now "producer"), the writer and himself sign; under their production companies.
While Option #1 gives the writer not even a penny for his hard work, Option #2 gives the writer WAY too much for his script. We are talking over $75,000 in compensation, plus 33% of all profits on the film (including theatrical). After seeing this, it is obvious to me that the Producer has lost his mind.
My question is..
Is the 2nd Option valid, even if it didn't state that the first option was invalid, because both parties from Option #1 signed Option #2?
Secondly, the Producer & the Director (now, "producer") list in the Option that their production companies are partnering together on the project. I know for fact that at least one of their companies is not "legal" at this moment (no paperwork has been filed). Is it legal sign on behalf of a company that hasn't been created yet? Can that make Option 2, invalid?
Thanks in advance!
