For Screenwriters & Indie Filmmakers
By Lex Nova Lawyer × Thoolie
Whether you’re selling a screenplay or negotiating life rights for a real person’s story, understanding the option and purchase agreement clauses is essential for protecting your work. This guide breaks down the most important terms in plain English so you can enter negotiations informed — even without a lawyer at your side.
📜 Key Deal Terms & Definitions
| Clause | What It Means | Example Clause (Plain English) | What to Watch Out For |
|---|---|---|---|
| Option Period | How long the producer has to decide whether to buy your script or rights. | “Producer shall have the exclusive right to purchase the Property for 12 months, with one 6-month extension upon payment of $2,500.” | Avoid indefinite options — set a firm expiration date. |
| Option Fee | The payment you get for granting the option and taking the script off the market. | “Writer shall be paid $5,000 for the initial Option Period, and $2,500 for each extension.” | Ensure payment is due on signing, not after delivery. |
| Purchase Price | The amount they’ll pay if they exercise the option and acquire full rights. | “If the Option is exercised, Producer shall pay Writer $40,000 as the Purchase Price.” | Confirm this is in addition to the Option Fee — not inclusive. |
| Backend (Profit Participation) | Your share of revenue after the film is sold or released. | “Writer shall receive 5% of 100% of Net Profits, defined as revenues after recoupment.” | Review the definition of “Net Profits” — often written to mean zero. |
| Credit | The screen credit you receive if the film is made. | “‘Written by’ credit, subject to WGA arbitration if applicable.” | Specify exact wording and whether it’s front-end or end credit. |
| Reversion Clause | What happens if they don’t make the movie — and your rights return. | “If Producer fails to start principal photography within 36 months, all rights revert to Writer.” | Push for automatic reversion without repayment. |
📝 Negotiation Notes + Smart Add-Ons
1️⃣ Development Rights
Defines what the producer can do during the Option Period (e.g., pitch to studios, attach talent).
Example:
“Producer may pitch, develop, and attach talent during the Option Period but may not exploit or sell the Property without exercising the Option.”
Watch Out For: vague rights that let them shop your script forever.
2️⃣ Extension Options
Limit how long your script can be tied up without meaningful progress.
Example:
“Producer may extend the Option for 6 months by paying $2,500 before expiration.”
Tip: increase fees for each extension and cap total option time at 18–24 months.
3️⃣ Life Rights (if based on a real person)
If your project is based on a real person, your option and purchase agreement must address name, likeness, and story rights — and who’s responsible for indemnification.
Example:
“Writer represents that life rights to [Name] have been secured and will be assigned upon exercise of the Option.”
4️⃣ Reversion Triggers
Spell out exactly when rights return to you.
Use this:
“If no purchase is made or production hasn’t begun within 36 months of Option exercise, all rights revert automatically.”
5️⃣ Bonus Clause: First Right of Re-Option
Allows the producer to try again later — but under new terms.
Example:
“If rights revert, Producer has a 30-day first right to re-option under mutually agreed terms.”
🚀 Why This Matters for Indie Filmmakers
Without a clear option and purchase agreement, your script could be tied up for years without being made — and without you being paid fairly. Strong clauses ensure your rights are protected, your payments are guaranteed, and your timeline is realistic.
🔐 Want to skip redlining from scratch?
Thoolie’s Option & Purchase Agreement Templates are lawyer-drafted for indie deals, include built-in reversion protection, and let you store clauses, generate redlines, and track option deadlines automatically.
📚 Related Resources:
