Class Handouts
Negotiating Agreements with Authors

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A. Works-made-for-hire. Certificate of Results and Proceeds

B. Terms of "OPTION AGREEMENT" between Author and Producer

1. Grant of rights

a. Exclusivity b. Initial venue c. Developmental productions

2. Time to produce

3. Advances and royalties

a. Royalty pool

b. Definitions:

i. Royalty Participants

ii. Standard Royalty

iii. Minimum Weekly Guarantee

iv. Gross Weekly Box Office Receipts

v. Weekly Operating Profits

vi. Running Expenses

vii. Profit Pool

viii.Recoupment

ix. Production Expenses

4. Subsidiary rights

a. Concept

b. Vesting

c. Length of time

d. Amount

5. Additional production rights

6. Billing

7. Representations, warranties and indemnities

8. APC

9. Approvals

10. Per diem

11. Name and likeness

12. Production outside U.S. and Canada

13. Original cast album

14. Music publishing

15. Merger of rights (if musical)

16. Radio and television exploitation

17. House seats

18. Billing for producer: Motion Picture and TV

19. Author's services

20. Notices and payments

21. Assignment

22. Arbitration

23. Books and records

24. Stage manager's script

25. Force majeure

26. Merchandising (commercial use products)

27. Article XXII (APC)

C. Dramatists Guild Minimum/APC for Musical Plays Royalty Pools

1. Dramatists Guild minimum pool consists of no less than 32% of weekly operating profits

2. Author receives at least 15.6% of 100% weekly operating profits increasing to 17.78% at Recoupment

3. Minimum weekly guarantee of $3000

4. Producer, Director and Choreographer collectively not receive more than Authors.

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