Is an electronic signature valid?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA laws, provided intent, consent, attribution, and retention requirements are met.

How do you properly exercise an option?

Follow the exercise clause: deliver written notice by the contract-specified method within the stated window and pay the purchase price or follow stipulated payment mechanics to effect exercise.

Do you need a notary for the agreement?

Most jurisdictions do not require notarization for contracts; notarization may be requested for added authentication or lender requirements. Check state-specific formality rules before notarizing.

What happens if the option expires?

If the option lapses without exercise, rights typically revert to the writer; review reversion language for any post-expiration obligations or release terms to avoid surprise encumbrances.

Who should sign on behalf of a company?

An authorized officer or signatory with authority to bind the entity should sign; obtain corporate resolutions or formation documents if authority is questioned during due diligence.

Can an option be revoked after signing?

Revocation depends on contract terms and state law; absent a contractual right to revoke, unilateral revocation may be a breach exposing the revoker to damages or specific performance.

Electronic Signature
Templates
Legal
Screenplay Option Agreement

Screenplay Option Agreement

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SCREENPLAY OPTION AGREEMENT

This Screenplay Option Agreement (the "Agreement") is made and entered into as of by and between Producer Name: , an entity organized as Entity Type: Corporation LLC Individual with principal address: (hereinafter "Producer"), and Writer Name: , an individual with address: (hereinafter "Writer"). Producer and Writer are each a "Party" and collectively the "Parties."

RECITALS

WHEREAS, Writer is the sole author and owner of all right, title and interest in and to a certain original screenplay currently entitled (the "Screenplay"), and has the exclusive right to grant options and licenses in respect of the Screenplay; and

WHEREAS, Producer desires to obtain from Writer an exclusive option to acquire certain motion picture and other exploitation rights in and to the Screenplay upon the terms and conditions set forth herein; and

WHEREAS, Writer desires to grant such an option to Producer in exchange for the payment and other covenants set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, receipt of which is hereby acknowledged, the Parties agree as follows:

1. GRANT OF OPTION

1.1 Option. Writer hereby grants to Producer the exclusive option (the "Option") to acquire all motion picture, television, ancillary and other rights in and to the Screenplay throughout the universe in perpetuity (the "Rights"), subject to the terms of this Agreement. The Option granted hereunder is exclusive during the Option Term described in Section 4.

1.2 Scope. The Rights sought to be acquired upon exercise include, without limitation, the exclusive right to produce, reproduce, distribute, perform, exhibit, adapt, translate, subtitle, dub and otherwise exploit the Screenplay in any and all media now known or hereafter devised, including theatrical motion pictures, television, streaming, home video, merchandising and promotional uses.

2. OPTION PAYMENT; OPTION TERM; EXTENSION

2.1 Option Payment. In consideration for the grant of the Option, Producer shall pay Writer an option payment in the amount of $ (the "Option Payment"), payable within days of the Effective Date.

2.2 Option Term. The Option shall commence on the Effective Date and shall continue for a period of months (the "Option Term"), unless earlier exercised or terminated in accordance with this Agreement.

2.3 Extension. Producer may extend the Option Term for an additional period of months by paying an extension fee of $ to Writer at least days prior to the expiration of the then-current Option Term.

3. PURCHASE PRICE; EXERCISE

3.1 Purchase Price. If Producer timely exercises the Option, Producer shall acquire the Rights upon payment of the purchase price of $ (the "Purchase Price"), less any Option Payment and extension fees previously paid hereunder, payable as follows: $ upon execution of the grant documents described in Section 3.3.

3.2 Exercise Notice. Producer shall exercise the Option by delivering to Writer written notice of exercise (the "Exercise Notice") prior to the expiration of the Option Term. The Exercise Notice shall specify the effective date of exercise and shall be accompanied by the portion of the Purchase Price required to be paid upon exercise.

3.3 Grant Documents. Upon payment of the Purchase Price and satisfaction of Producer's obligations, Writer shall deliver to Producer a grant of rights and assignment in form and substance reasonably acceptable to Producer, transferring to Producer the Rights acquired hereunder, free and clear of any liens or encumbrances, together with any customary proofs of ownership.

4. DELIVERY; ACCEPTANCE; MATERIALS

4.1 Delivery. If not previously delivered, Writer shall deliver to Producer a final shooting script draft of the Screenplay within days following the Effective Date. Delivery shall include one electronic copy and one paper copy, and any other materials reasonably requested by Producer.

4.2 Acceptance. Producer shall have a period of days after delivery to notify Writer in writing of any claimed deficiencies. Absent timely notice, the Screenplay shall be deemed accepted.

5. REPRESENTATIONS AND WARRANTIES

5.1 Writer Representations. Writer represents and warrants that: (a) Writer is the sole author and exclusive owner of the Screenplay and has full power and authority to enter into this Agreement and to grant the rights herein; (b) the Screenplay is wholly original to Writer and does not infringe any third-party rights; (c) there are no claims, liens, encumbrances, options or agreements binding Writer that would conflict with the rights granted to Producer; and (d) Writer has not granted and will not grant any rights inconsistent with this Agreement during the Option Term.

5.2 Producer Representations. Producer represents and warrants that Producer has full power and authority to enter into this Agreement and to perform its obligations hereunder.

6. CREDIT

6.1 Writer Credit. Subject to customary alteration during production, if Producer exercises the Option and Producer produces a theatrically released motion picture based primarily on the Screenplay, Writer shall be accorded screen credit substantially as follows: Written by , to be displayed in the main titles or end credits in a manner consistent with Writer's contribution and customary industry practice.

6.2 Disputes over credit shall be resolved in good faith by the Parties taking into account customary standards in the motion picture industry.

7. COMPENSATION AND ADDITIONAL TERMS

7.1 Backend Participation. Any additional compensation, bonuses, percentage participation, profit participation or contingent compensation shall be as set forth in a separate agreement negotiated between the Parties and, absent such agreement, shall not be implied by this Agreement.

7.2 Taxes. Each Party shall be responsible for its own taxes arising from amounts received under this Agreement unless otherwise required by applicable law.

8. ASSIGNMENT

8.1 Producer Assignment. Producer may assign or transfer this Agreement, or any of Producer's rights hereunder, to an affiliated entity or to a purchaser of all or substantially all of Producer's interests, provided that any such assignee assumes Producer's obligations hereunder in writing.

8.2 Writer Assignment. Writer shall not assign or encumber Writer's rights under this Agreement without Producer's prior written consent, except that Writer may assign to a successor-in-interest by operation of law.

9. CONFIDENTIALITY

9.1 Non-Disclosure. Except as required for performance of this Agreement or as required by law, each Party shall keep confidential and shall not disclose to any third party the Screenplay, business terms of this Agreement, or any confidential materials exchanged between the Parties without the prior written consent of the other Party.

10. INDEMNIFICATION

10.1 Indemnity by Writer. Writer shall indemnify, defend and hold harmless Producer and its affiliates, officers, directors and employees from and against any and all losses, liabilities, damages, claims and expenses (including reasonable attorneys' fees) arising out of any breach of Writer's representations, warranties or obligations under this Agreement, including any third-party claim of infringement related to the Screenplay.

10.2 Indemnity by Producer. Producer shall indemnify, defend and hold harmless Writer from and against any and all losses, liabilities, damages, claims and expenses arising out of Producer's gross negligence or willful misconduct in connection with Producer's activities under this Agreement.

11. TERMINATION

11.1 Termination for Material Breach. Either Party may terminate this Agreement upon written notice to the other Party if the other Party materially breaches any representation, warranty or covenant herein and fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach.

11.2 Effect of Termination. Upon termination, all rights and obligations under this Agreement shall cease except for those provisions that by their nature survive termination, including Sections 5 (Representations and Warranties), 9 (Confidentiality), 10 (Indemnification), 14 (Governing Law), and 15 (Entire Agreement).

12. NOTICES

All notices, requests or other communications required or permitted hereunder shall be in writing and shall be delivered by hand, by nationally recognized overnight courier, or by certified mail, return receipt requested, to the addresses set forth below or to such other address as either Party may specify in writing:

Producer Notice Address Writer Notice Address

13. GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State selected by the Parties at the time of execution. Any dispute, claim or controversy arising out of or relating to this Agreement shall be resolved by binding arbitration conducted in accordance with the commercial arbitration rules chosen by the Parties, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

14. ENTIRE AGREEMENT; AMENDMENT; WAIVER

This Agreement constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior negotiations, understandings and agreements. Any amendment or modification must be in writing and signed by both Parties. Failure of either Party to enforce any provision shall not constitute a waiver of that provision or any other provision.

15. SEVERABILITY; COUNTERPARTS

If any provision of this Agreement is held invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it enforceable, and the remaining provisions shall remain in full force and effect. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

16. MISCELLANEOUS

16.1 Force Majeure. Neither Party shall be liable for failure to perform its obligations (other than payment obligations) to the extent such failure results from events beyond the reasonable control of the Party, provided that the non-performing Party gives prompt notice to the other Party and uses commercially reasonable efforts to resume performance.

16.2 Relationship of the Parties. The Parties are independent contractors. Nothing contained in this Agreement shall be construed to create a joint venture, partnership, agency or employment relationship between the Parties.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

Producer Name:

By:

Date:

Writer Name:

By:

Date:

What a Screenplay Option Agreement Is

A Screenplay Option Agreement is a time-limited contract in which a producer, production company, or purchaser secures the exclusive right to acquire underlying rights to a screenplay or underlying property for a defined period. The writer grants an option in exchange for consideration (the option fee), and the contract sets the exercise price, option period, scope of rights, credited authorship, and reversion conditions if the option is not exercised. The agreement also addresses warranties, chain of title, delivery materials, and any development or production obligations during the option term.

Why an Option Agreement Matters for Writers and Producers

An option lets a producer control rights without immediate purchase, while providing writers upfront compensation and clear terms for exercise or reversion. It reduces risk, documents expectations, and preserves bargaining positions for future production or sale.

Who Typically Signs a Screenplay Option Agreement

The agreement is used by a small set of participants who handle creative rights, financing, and legal clearance before production begins.

Writer or Rights Holder — The individual or entity that owns the screenplay or adaptation rights and grants the option to a producer.
Producer / Production Company — The party seeking exclusive temporary control to develop, pitch, or finance the project.
Agent or Manager — Representative who negotiates terms, clears obligations, and often countersigns to confirm authority.

Clear designation of each party and their role reduces later disputes and speeds exercise, financing, and production decisions.

Essential Clauses to Include in a Professional Agreement

A robust Screenplay Option Agreement clarifies timing, payment, rights, and contingencies so both parties understand obligations during development and at exercise.

Option Period

Defines the exact start and end dates or duration of the option and any extension mechanics tied to additional payments or milestones; prevents ambiguity about when the option lapses.

Option Payment

Specifies the fee paid for the option, payment schedule, and whether partial payments are refundable or credited toward the purchase price upon exercise.

Exercise Terms

Sets the method, timing, and form of notice required to exercise the option, the purchase price upon exercise, and how credited amounts apply to final purchase.

Rights Granted

Identifies exactly what rights are being optioned (film, television, derivative works, territory, language, media) and limits on exploitation during the option period.

Warranties

Writer representations about ownership, absence of conflicting agreements, and authority to grant rights; important for chain-of-title and insurance.

Reversion & Defaults

Describes what happens if option expires or party defaults, including return of rights, cure periods, and remedies for breach.

Step-by-Step: Completing the Agreement

Follow a clear sequence to draft, negotiate, and finalize the option to avoid common pitfalls and preserve rights.

01

Draft Agreement: Prepare a written option with all essential clauses.
02

Negotiate Terms: Agree on price, term, rights, and exercise mechanics.
03

Execute Signatures: Obtain signatures from authorized signers and date the document.
04

Store Records: Distribute executed copies to all parties and retain originals.

Setting Up a Digital Workflow for the Agreement

Configure e-signature fields, authentication, and notifications before routing to signers to reduce back-and-forth.

Field	Configuration
Signature Authentication	Email link or SMS code; use higher assurance for investors or transfers.
Field Types	Signatures, initials, dates, and checkboxes for delivery confirmations.
Conditional Fields	Show extension terms only if extension box checked to avoid clutter.
Notifications	Auto-notify all parties when option fee posts or exercise notice is filed.

Where to Send and File the Executed Agreement

Final routing and storage steps ensure enforceability, notice delivery, and quick reference during development or financing.

Send to All Parties: Email executed PDF to each party and their counsel.
File with Counsel: Provide counsel with a signed copy for chain-of-title review.
Provide to Insurer: Share with errors-and-omissions insurer if required for production.
Store Securely: Retain an archived copy in contract repository with access controls.

Digital Signing and Storage Considerations

Choose a platform that supports reliable signatures, tamper-evident PDFs, and exportable audit trails for legal records.

Supported Formats: PDF, DOCX supported for signing.
Integrations: Connect to Google Workspace, NetSuite, or cloud storage.
Authentication: Email, SMS code, or advanced signer verification.

Ensure the platform preserves a complete audit trail (timestamps, IPs, signer attribution) and offers secure storage with AES-256 encryption and role-based access for future disputes or financing due diligence.

Typical Deadlines to Track in an Option Agreement

Track payment, notice, and term deadlines precisely to preserve rights and avoid unintended lapses or disputes.

Effective Date Entry:

Effective Date starts all term calculations; use MM/DD/YYYY format.

Option Fee Due Date:

Often due on signing; late payment may void exclusivity.

Exercise Notice Window:

State the final date and acceptable delivery methods for exercise notice.

Extension Payment Deadlines:

Specify any payments required to extend the option term.

Reversion Effective Date:

Date when rights revert to writer if option lapses.

Key Milestones from Option to Production

Use a milestone sequence to map development events and decision points between grant and exercise.

01

Option Grant

Agreement executed and option fee paid; exclusivity begins.

02

Development Period

Rewrites, pitches, financing and attachments occur during the option term.

03

Exercise Decision

Producer gives notice and pays purchase price if proceeding to acquisition.

04

Production Commit

Rights transfer completed and production financing or greenlight occurs.

Common Mistakes to Avoid

Vague exercise mechanics that do not define how or when notice is delivered leading to disputes.
Failing to secure chain of title or failing to disclose prior assignments and options.
Not specifying credit, sequel, or derivative rights, resulting in later negotiation gaps.
Omitting cure periods or clear remedies for missed payments and material breaches.

Consequences and Legal Risks of a Flawed Agreement

Breach Damages: Monetary liability and potential specific performance claims.

Loss of Rights: Unclear terms may lead to unintended reversion or third-party claims.

Tax Implications: Incorrect reporting of option payments may trigger IRS scrutiny.

Insurance Gaps: Errors or omissions may void production insurance coverage.

Assignment Disputes: Improperly authorized signers can render transfers voidable.

Fraud Risk: False warranties about chain of title bring rescission or damages.

eSignature Platform Pricing and Capabilities

Compare basic pricing and feature availability when selecting an eSignature provider to execute and store Screenplay Option Agreements securely.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes (7-day)	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

How Option Agreements Work in Practice

Two concise examples show common outcomes and decisions surrounding an option, from development to exercise or reversion.

Independent Writer Option

A writer grants an 18-month option for a $5,000 fee to a producer to shop the script

Producer secures meetings and a rewrite plan
If producer fails to exercise by term end, rights revert and the writer is free to re-market while credited for prior development.

Studio Exercise Scenario

A production company exercises its option after financing closes and pays the agreed purchase price

Exercise notice complies with certified mail delivery
Rights transfer and payment processing trigger assignment and production greenlight steps.

Frequently Asked Questions About Option Agreements

Answers to common legal and practical questions about completing, exercising, and storing a Screenplay Option Agreement.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA laws, provided intent, consent, attribution, and retention requirements are met.
How do you properly exercise an option?
Follow the exercise clause: deliver written notice by the contract-specified method within the stated window and pay the purchase price or follow stipulated payment mechanics to effect exercise.
Do you need a notary for the agreement?
Most jurisdictions do not require notarization for contracts; notarization may be requested for added authentication or lender requirements. Check state-specific formality rules before notarizing.
What happens if the option expires?
If the option lapses without exercise, rights typically revert to the writer; review reversion language for any post-expiration obligations or release terms to avoid surprise encumbrances.
Who should sign on behalf of a company?
An authorized officer or signatory with authority to bind the entity should sign; obtain corporate resolutions or formation documents if authority is questioned during due diligence.
Can an option be revoked after signing?
Revocation depends on contract terms and state law; absent a contractual right to revoke, unilateral revocation may be a breach exposing the revoker to damages or specific performance.

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