The other common clause is a little tricky and would require careful consideration before you agree to it. This clause appears to be providing protection for the production company against any claim or suit you may file against it in relation to the content of your screenplay.
This clause, generally, allows the production company to develop or create content that is similar in theme, plot or structure to your screenplay. Should this happen, you agree not to seek compensation even if the company ends up developing a screenplay and producing a film that may well look like its main idea was lifted from your screenplay.
If you feel your screenplay deals with an idea or subject that has not been dealt with before in a film, you have cause to worry about the possibility of your hard work being snatched away from you without any compensation.
It’s a risk you would have to take and in most instances the risk is low. Most companies will not even consider the idea of ripping you off especially when they find that you’ve the potential to be a great screenwriter. They would want to work with you in the long-term for a win-win situation.
Anyway, this clause should put you on guard. You would want to check the background of a film production company before committing yourself to working with it.
To get an idea of the general clauses of a standard screenplay release form, visit this site.