ARTICLE B3 - OPTIONS

B301
An Option contract grants the Producer the exclusive right, within a specified period, to acquire a license to produce a production based on the optioned Script Material. An Option contract does not convey such license in or of itself.

B302
Changes to and/or additional development of the optioned material may be made before this license is obtained by (i) obtaining the Guild's written consent, (ii) negotiating with the original Writer, and (iii) contracting the new writing in accordance with the terms of this Agreement. In these circumstances, on the exercise of the option the Producer shall acquire a license to the optioned material as well as the changes and/or additional development contracted.

B303
An Option contract between a Producer and a Writer shall specify:

1. The payment of the Option fee, for which the Producer is granted the exclusive right to acquire a license to produce the Script Material;
2. The Option period, including renewals, which shall not exceed three (3) years;
3. The fee for each year of the Option, which shall not be less than ten percent (10%) per year of the fee payable on the exercise of the Option. This amount may be pro rated;
4. That the only fee(s) deductible from the fee payable on exercise of the Option are Option fees paid with respect to the first eighteen (18) months;
5. The stage of development of the Script Material being optioned and which will be acquired on the exercise of the Option (e.g. Treatment, First Draft Script, Second Draft Script, etc.); and
6. That if the Option contract provides for assignment, the Producer shall give written notice to the Writer immediately upon such assignment.

B304
An Option contract between a Producer and a Writer of one (1) month or less shall be completely negotiable between that Producer and Writer and shall not necessarily be subject to the provisions of this Article.