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Usenet Posted 21 years ago
Screenwriting
Question about option agreement
Howdy,
One of the many provisions in the option agreement my partner and I have with our producer is the following, which says we get 5% of her net profits:
In addition to the purchase price the following consideration shall be paid to Owner:
On the exercise by Producer of any and all rights to the Screenplay granted hereunder, including the Subsidiary Rights as hereinafter defined, five percent (5%) of Producer Net Profits from all receipts derived from the Motion Picture and Subsidiary Rights, payable to Owner within thirty (30) days after the calendar quarter in which the receipts were received by Producer. The term "Producer Net Profits," as used herein shall be defined, computed, paid and accounted for according to the prime distributor's definition of "Producer Net Profits". Owner's definition of Net Profits shall be identical to that of Producer's.
My partner has an extremely pessimistic take on this; he thinks that (assuming the film actually gets made and sells any tickets) there's virtually never anything left over that actually meets the definition of "Producer Net Profits" and thus it's very unlikely that our promised 5% would amount to anything.
Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? (Or something else?)
Thankee.
-marlup
One of the many provisions in the option agreement my partner and I have with our producer is the following, which says we get 5% of her net profits:
In addition to the purchase price the following consideration shall be paid to Owner:
On the exercise by Producer of any and all rights to the Screenplay granted hereunder, including the Subsidiary Rights as hereinafter defined, five percent (5%) of Producer Net Profits from all receipts derived from the Motion Picture and Subsidiary Rights, payable to Owner within thirty (30) days after the calendar quarter in which the receipts were received by Producer. The term "Producer Net Profits," as used herein shall be defined, computed, paid and accounted for according to the prime distributor's definition of "Producer Net Profits". Owner's definition of Net Profits shall be identical to that of Producer's.
My partner has an extremely pessimistic take on this; he thinks that (assuming the film actually gets made and sells any tickets) there's virtually never anything left over that actually meets the definition of "Producer Net Profits" and thus it's very unlikely that our promised 5% would amount to anything.
Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? (Or something else?)
Thankee.
-marlup
Top answer
[nq:1]Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? )[/nq] I'm not an experienced Hollywood accountant, but my reaction is the same as your partner's. This clause doesn't hurt you, but don't ever expect to see any money out of it.
- [nq:1]Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic?
- )[/nq] I'm not an experienced Hollywood accountant, but my reaction is the same as your partner's.
- This clause doesn't hurt you, but don't ever expect to see any money out of it.
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7 Answers
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[nq:1]Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? (Or something else?)[/nq]
I'm not an experienced Hollywood accountant, but my reaction is the same as your partner's.
This clause doesn't hurt you, but don't ever expect to see any money out of it.
I'm not an experienced Hollywood accountant, but my reaction is the same as your partner's.
This clause doesn't hurt you, but don't ever expect to see any money out of it.
00
@reader1.panix.com:
[nq:2]Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? (Or something else?)[/nq]
[nq:1]I'm not an experienced Hollywood accountant, but my reaction is the same as your partner's. This clause doesn't hurt you, but don't ever expect to see any money out of it.[/nq]
Also, it's a dead giveaway if everyone in the office cracks up e
[nq:2]Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? (Or something else?)[/nq]
[nq:1]I'm not an experienced Hollywood accountant, but my reaction is the same as your partner's. This clause doesn't hurt you, but don't ever expect to see any money out of it.[/nq]
Also, it's a dead giveaway if everyone in the office cracks up e
00
It's a lottery ticket. It probably won't amount to anything, but it could be worth something if things go well. Take it.
The term is a little misleading. It sounds like this "PNP" is what the dist pays the prodco. If that's the case, you're being offer 5% of the producer's gross, minus whatever gets withheld from advances and such.
If the prodco negotiates a good deal, what you'r
The term is a little misleading. It sounds like this "PNP" is what the dist pays the prodco. If that's the case, you're being offer 5% of the producer's gross, minus whatever gets withheld from advances and such.
If the prodco negotiates a good deal, what you'r
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[nq:1]It's a lottery ticket. It probably won't amount to anything, but it could be worth something if things go well. Take it.[/nq]
Try to retain action figure rights, at least that where George Lucas reputedly made most of his bucks.
-sam
Try to retain action figure rights, at least that where George Lucas reputedly made most of his bucks.
-sam
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[nq:2]It's a lottery ticket. It probably won't amount to anything, but it could be worth something if things go well. Take it.[/nq]
[nq:1]Try to retain action figure rights, at least that where George Lucas reputedly made most of his bucks.[/nq]
The McHappy Meals are a nice little earner too I'm not joking. The real money is often in the merchandising.
"You don't write because you
[nq:1]Try to retain action figure rights, at least that where George Lucas reputedly made most of his bucks.[/nq]
The McHappy Meals are a nice little earner too I'm not joking. The real money is often in the merchandising.
"You don't write because you
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[nq:1]Howdy, One of the many provisions in the option agreement my partner and I have with our producer is the ... Any opinions as to whether that's a pretty accurate take, or if it's overly pessimistic? (Or something else?) Thankee. -marlup[/nq]
Yeah, it's probably just about five percent of nothing.
I don't know how far up the totem pole this particular producer is or how, in the fi
Yeah, it's probably just about five percent of nothing.
I don't know how far up the totem pole this particular producer is or how, in the fi
00
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