You have drafted a producer agreement between your studio and producer George Stevens. After reviewing the deal memo, which was silent on the issue of approval rights, the business affairs executive for the studio calls to say "by the way, I gave Stevens approval over selection of the cast, key crew, the director, any future writers, and the shooting script" so add that to the contract and use our normal language.

You draft the following clause (Producer Agreement Clause and send it to Stevens's lawyer.

If you were Stevens's attorney, what language might you object to in the clause? Why, and on what basis?

Producer Agreement Clause

7.1 Approval Rights. Company and Artist shall mutually approve the shooting script, selection of writer(s), if any, engaged after the date hereof, key crew members, the director and the star cast to be engaged to render services in connection with the Picture.

7.2 Exercise of Approval Rights. All or approval rights, if any, granted to Artist hereunder shall be subject to the following: (i) Artist being available as, when and where reasonably required for the exercise of such rights; (ii) such rights being exercised in a reasonable manner and not so as to frustrate Company's full and timely development, production and/or exploitation of the Picture; (iii) such rights are personal to Artist and may not be exercised by any other person or entity; (iv) Company shall not be obligated to incur any additional costs with respect to such approvalrights; and (v) if mutual agreement is not reached as to any item(s) or individual(s) with respect to which Artist has approval rights,Company may designate such item(s) or individual(s) in its sole discretion. Artist's approval rights, if any, with respect to the selection of personnel in connection with the Picture shall be further subject to (a) Company not being aware of any prior negative experience with such persons, (b) such persons not acting in the designated capacity for the first time on a major studio motion picture, (c) such persons' availability, and (d) Company's ability to hire such persons within the approved budget. At such time, if ever, as Artist is made "pay or play," then all approval rights shall be deemed to be rights of consultation."