Advice concerning legal clause

[Visser]

Hey everyone,
We are in the process of optioning a novel to adapt, but the author's agent put the following clause in the contract. Could anybody point me to where I can find out exactly what that means:

1. Option
1.1....
1.2....
1.3....
1.4 In the event the Producer sets the project up (such set up as is customarily understood in the film and television industry) with a studio, distributor, broadcaster or other financier, the Writer shall immediately receive a bonus of £10,000, such sum is non-deductible from the Licence Fee as defined below.
1.5...


Basically: what is defined as setting up the project? Would signing with a distributor up front be setting up?

Any advice would be greatly appreciated.

~Rik

 

[Kim Welch]

I apologize for the delay in responding, and thank you for posting, Rik. Congratulations on optioning a novel, that's a big step. In general, a set-up bonus is triggered when the project gets a firm commitment from a studio, distributor, broadcaster or financier to finance or produce it, but the exact meaning depends on how the contract defines it.

Because that wording can be read different ways, it's worth asking the agent to define set up in writing (for example, a signed financing or production agreement) and having an entertainment lawyer review the option. It protects both you and the writer. Best of luck with the adaptation!