MOTION PICTURE OPTION, DEVELOPMENT & ROYALTY AGREEMENT (the “Agreement”)
Effective Date: June 3, 2024
1. PARTIES
1. Director / Producer
xxxx
2. Author / Rights Holder (“Client”)
Jivan Lal
Together, the above are the “Parties.”
2. PROPERTY & PURPOSE
The Client is sole owner of all literary rights in and to the novel entitled “Eternal Love” (the “Property”).
The Director desires to adapt the Property into a feature-length motion picture tentatively entitled “Eternal Love” (the “Picture”) and to exploit the Picture in all media worldwide.
3.SECURITYDEPOSIT; INSTALLMENT SCHEDULE
1. Amount.ꢀThe Client shall pay a refundable security deposit of USꢀ$30,000 (thirty-thousand United States dollars) to the Director.
2. Installments.ꢀThe deposit shall be remitted in twenty-fourꢀ(24) equal monthly
installments of USꢀ$1,250 each, with the first installment due within thirty (30) days
after the Effective Date and each subsequent installment due on the same calendar day of each succeeding month.
3. Pre-Payment.ꢀThe Client may pre-pay any remaining balance at any time without penalty.
3A. TARGET RELEASE WINDOW
The Parties intend that the Picture will have its first commercial launch during the fourth quarter (Q4) of 2028 or the first quarter (Q1) of 2029 (the “Target Release Window”). All reasonable commercial efforts shall be employed to meet this schedule, subject to customary production, post-production, and force-majeure contingencies.
4. REFUND & ROYALTY
1. Triggering Event.ꢀBeginning on the date the Picture first premieres commercially on any exhibition platform (including but not limited to theatrical release, streaming service, broadcast, or VOD) (the “Release Date”), the following shall occur:
Refund:
Within ninetyꢀ(90) days after the Release Date, the Director shall refund to the Client the full USꢀ$30,000 security deposit.
Royalty Commencement:ꢀSimultaneously, the Client shall begin to receive a continuing three percentꢀ(3ꢀ%) royalty of the Picture’s Gross Profit (as defined below).
2.Definition of Gross Profit.ꢀ“Gross Profit” means all gross monies actually received by the Director or the Director’s designee from exploitation of the Picture worldwide in all media, less only: (i) third-party distribution or sales commissions (capped at 30ꢀ%), (ii) collection-account fees, and (iii) taxes or withholdings required by law.
3.Statements&Payments.
Royalty statements (with reasonable supporting detail) and any amounts due shall be issued semi-annually within sixtyꢀ(60) days after Juneꢀ30 and Decemberꢀ31 of each calendar year following the Release Date.
5. GRANT OF RIGHTS
Upon receipt of the first installment, the Client grants to the Director the sole and exclusive,irrevocable, worldwide right for the full term of copyright (including renewals and extensions) to develop, adapt, produce, distribute, market, and otherwise exploit the Picture and all ancillary and derivative works in any and all media now known or later devised.
6. EXPLOITATION PLATFORMS
The Parties acknowledge that only the Director (or entities designated by the Director) shall negotiate, enter into, and control all distribution and exhibition agreements for the Picture, including without limitation theatrical release, streaming platforms, television, and ancillary markets.
7.CREATIVE CONTROL & CREDIT
The Director shall have final creative authority over the Picture.
The Client shall receive on-screen credit reading: “Based on the Novel „Eternal Love‟ by Jivan Lal.”
The Client may review screenplay drafts for comment; such comments shall be advisory only.
8. WARRANTIES & INDEMNITIES
Each Party represents and warrants it has full right, power, and authority to enter into and perform this Agreement. The Client warrants that exploitation of the Property as contemplated will not infringe any third-party rights. Each Party shall indemnify and hold the other harmless from any breach of the foregoing warranties.
9. DEFAULT & TERMINATION
If the Client fails to remit two (2) consecutive installments and does not cure such default within fifteenꢀ(15) days after written notice, the Director may suspend performance or terminate this Agreement. Upon termination for Client breach, all sums previously paid shall be retained by the Director as liquidated damages.
10. GOVERNING LAW & DISPUTE RESOLUTION
This Agreement shall be governed by and construed in accordance with the laws of the State of California, USA. Any dispute arising hereunder shall be submitted to binding arbitration in Los Angeles pursuant to JAMS Streamlined Rules, and judgment upon the award rendered may be entered in any court of competent jurisdiction.
11. MISCELLANEOUS
Entire Agreement.ꢀThis document constitutes the entire agreement between the Parties and supersedes all prior negotiations.
Amendments.ꢀNo amendment shall be effective unless in writing signed by both Parties.
Assignment.ꢀThe Director may assign this Agreement to a production company controlled by the Director.
Counterparts & Electronic Signatures.
ꢀThis Agreement may be executed in counterparts, including by electronic signature, each of which shall be deemed an original.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
Director / Producer Client / Rights Holder
_______________________________ __________________
_____________
xxxxx
Jivan Lal
Date: June 3, 2025__
Date: ______________
