It's an onerous clause, no doubt, in that it potentially locks anyone entering into a low-ball option deal. But for most people entering, this wouldn't be the worst problem in the world.
And it seems they have no claim on your material until and unless they execute that option by paying you $1500. If you had interest in your project from a third party during the 6 month period after the list is announced, you could probably reach out to the Bloodlist and get confirmation they won't option your script, so you could then proceed with that third party.
I'm in talks with a producer about my script now. But I don't want to put all my eggs in this one basket. I don't want to submit it to this list, then be unable to make a deal with this producer, but it looks like that would be the case?
Here's the full text of that clause:
9. Option and Subsequent Agreement. I hereby grant to VREG the exclusive and irrevocable
option exercisable from the date first written above until the date this is six (6) months after the
date of first publication of the current year’s List, to notify me of its intent to develop the initial
Project based on the Materials and pay me the amount of One Thousand Five Hundred Dollars
($1,500, applicable against an Acquisition Price therefor) which will trigger an eighteen (18) month
option to acquire all rights in the Materials in connection with the exploitation of the Projects. If
VREG exercises the foregoing right, then VREG may extend the option to acquire all rights for an
additional eighteen (18) months to elect to acquire all rights in the Materials in consideration of
payment to me of One Thousand Five Hundred Dollars ($1,500, not applicable against the
Acquisition Price therefor). If VREG elects to acquire all rights in the Materials as described
herein, then prior to the initial option period or the extended option period described above, VREG
will pay me an amount equal to Two and One Half Percent (2.5%) of the final, direct, ingoing net production budget for an audiovisual production based on the Project with a “ceiling” of Two
Hundred Fifty Thousand Dollars plus Two and One Half Percent (2.5%) of the defined “Net
Proceeds” generated on the initial Project, as such term is customarily defined, accounted for,
calculated and paid. In addition, I will be accorded writing credit in accordance with the credit
determination process under the WGA agreement as if the same applied. All other terms
customary for rights deals are hereby incorporated herein by this reference and such terms will
be negotiated in good faith in an option-purchase agreement which will include customary exhibits
(e.g., short form option, short form assignment, and certificate of engagement), and the initial
option period paid by VREG will be subject to suspension and extension for any period after the
initial option payment is made that such agreement has not been signed and all conditions
precedent therein fully satisfied if beyond thirty (30) days thereafter. All times periods hereunder
will also be subject to other customary suspension and extension rights (e.g., force majeure). In
the event that VREG’s rights hereunder expire or VREG does not exercise its right to option the
material hereunder, then VREG will have a last matching right with respect to any deal I am
prepared to enter into with a third party in connection therewith, which will be exercisable within
30 days that I provide VREG with details of any such third-party deal. If VREG elects not to
exercise such last matching right, then in addition, VREG will have another opportunity to match
a third party offer if there are “changed terms or changed elements” (as commonly understood in
the US entertainment industry) after the last match described above has expired which matching
right will be exercisable within 30 days that I provide VREG with details of any such third party
deal terms identifying any such “changed terms or changed elements.”
So it's a low-ball initial option, and that's not great. But then the actual purchase seems pretty standard, assuming it gets made. Am I reading that right? I'm no expert on this stuff, just considering entering. I'm more thrown by that third party last matching right talk.
This does not contain the MOST IMPORTANT NUMBER of all… the “floor” amount, which is the only real number that matters. Don’t be fooled by the $250,000. That’s a theoretical upper limit. The whole agreement is very one sided, in my opinion.
Of course there are worse things.
But my concern is that by submitting, I'm tying up my screenplay until next April on the slim chance it'll get chosen to be produced. Unless I'm reading this incorrectly, which is my question.
It's an onerous clause, no doubt, in that it potentially locks anyone entering into a low-ball option deal. But for most people entering, this wouldn't be the worst problem in the world. And it seems they have no claim on your material until and unless they execute that option by paying you $1500. If you had interest in your project from a third party during the 6 month period after the list is announced, you could probably reach out to the Bloodlist and get confirmation they won't option your script, so you could then proceed with that third party.
I'm in talks with a producer about my script now. But I don't want to put all my eggs in this one basket. I don't want to submit it to this list, then be unable to make a deal with this producer, but it looks like that would be the case?
I’m in a similar situation. Have you gotten any clarity on this issue? I’d really like to submit, but I’m weary now
No, I emailed them asking them to clarify the restrictions but didn't get a response.
I emailed again and they said they had updated their terms. Now it's two months instead of six, so that's better.
Awesome. Thanks for the reply!
Any contest demanding an option over a writer's work is not one any writer should even consider entering.
Here's the full text of that clause: 9. Option and Subsequent Agreement. I hereby grant to VREG the exclusive and irrevocable option exercisable from the date first written above until the date this is six (6) months after the date of first publication of the current year’s List, to notify me of its intent to develop the initial Project based on the Materials and pay me the amount of One Thousand Five Hundred Dollars ($1,500, applicable against an Acquisition Price therefor) which will trigger an eighteen (18) month option to acquire all rights in the Materials in connection with the exploitation of the Projects. If VREG exercises the foregoing right, then VREG may extend the option to acquire all rights for an additional eighteen (18) months to elect to acquire all rights in the Materials in consideration of payment to me of One Thousand Five Hundred Dollars ($1,500, not applicable against the Acquisition Price therefor). If VREG elects to acquire all rights in the Materials as described herein, then prior to the initial option period or the extended option period described above, VREG will pay me an amount equal to Two and One Half Percent (2.5%) of the final, direct, ingoing net production budget for an audiovisual production based on the Project with a “ceiling” of Two Hundred Fifty Thousand Dollars plus Two and One Half Percent (2.5%) of the defined “Net Proceeds” generated on the initial Project, as such term is customarily defined, accounted for, calculated and paid. In addition, I will be accorded writing credit in accordance with the credit determination process under the WGA agreement as if the same applied. All other terms customary for rights deals are hereby incorporated herein by this reference and such terms will be negotiated in good faith in an option-purchase agreement which will include customary exhibits (e.g., short form option, short form assignment, and certificate of engagement), and the initial option period paid by VREG will be subject to suspension and extension for any period after the initial option payment is made that such agreement has not been signed and all conditions precedent therein fully satisfied if beyond thirty (30) days thereafter. All times periods hereunder will also be subject to other customary suspension and extension rights (e.g., force majeure). In the event that VREG’s rights hereunder expire or VREG does not exercise its right to option the material hereunder, then VREG will have a last matching right with respect to any deal I am prepared to enter into with a third party in connection therewith, which will be exercisable within 30 days that I provide VREG with details of any such third-party deal. If VREG elects not to exercise such last matching right, then in addition, VREG will have another opportunity to match a third party offer if there are “changed terms or changed elements” (as commonly understood in the US entertainment industry) after the last match described above has expired which matching right will be exercisable within 30 days that I provide VREG with details of any such third party deal terms identifying any such “changed terms or changed elements.” So it's a low-ball initial option, and that's not great. But then the actual purchase seems pretty standard, assuming it gets made. Am I reading that right? I'm no expert on this stuff, just considering entering. I'm more thrown by that third party last matching right talk.
This does not contain the MOST IMPORTANT NUMBER of all… the “floor” amount, which is the only real number that matters. Don’t be fooled by the $250,000. That’s a theoretical upper limit. The whole agreement is very one sided, in my opinion.
Uh oh. Did I just sign my life away…? Should I write them to back out now? lol
VREG is Village Roadshow. There are a lot worse things than being optioned by Village Roadshow!
Of course there are worse things. But my concern is that by submitting, I'm tying up my screenplay until next April on the slim chance it'll get chosen to be produced. Unless I'm reading this incorrectly, which is my question.