Option Agreement
Category: 270 Legal Recent Posts, Entertainment Agreements, Film, Option
OPTION AGREEMENT
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2. OPTION:
(a) In consideration of the payment to Owner of 250,000(the “Advance”), the receipt of which Owner acknowledges, which shall be applicable against and recoupable from any and all other payments to Owner hereunder, Owner hereby grants to Producer during the Option Period (as defined below) the exclusive and irrevocable option for each and every Subject Property to purchase all of the Rights (as defined below) in and to such Subject Property on and subject to the terms and conditions herein contained (individually an “Option” and collectively “Options”).
(b) (i) The Option for any Subject Property shall be effective only during the Option Period (as hereinafter defined) for that Subject Property. Each “Option Period” shall consist of the Initial Option Period (as defined below) plus, if applicable, the First Extended Period (as defined below), and, if also applicable, the Second Extended Period (as defined below).
(ii) The “Initial Option Period” for each Subject Property shall commence as of the date hereof (or, in the case of a Property that becomes a Subject Property after the date hereof, upon the date such Property becomes a Subject Property) and shall continue until December 31,2007.
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6. THIRD-PARTY AGREEMENTS. Producer shall not enter into any agreement with a third party with respect to any Rights or any Subject Property without Owner’s approval thereof (which approval shall not be withheld or delayed unreasonably, and which shall take into account then-current industry standards for the type of exploitation contemplated by the proposed agreement). Notwithstanding anything to the contrary contained herein, Owner’s right to approve third-party agreements shall extend to only to the parties involved and the material terms thereof.
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