diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..607b4c3
--- /dev/null
+++ b/.env.example
@@ -0,0 +1 @@
+ANTHROPIC_API_KEY=your-api-key-here
diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..c972363
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,6 @@
+output/
+.env
+__pycache__/
+*.pyc
+.venv/
+venv/
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..66854ce
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,3 @@
+anthropic>=0.40.0
+pydantic>=2.0.0
+python-dotenv>=1.0.0
diff --git a/run.py b/run.py
new file mode 100644
index 0000000..ce9d1a2
--- /dev/null
+++ b/run.py
@@ -0,0 +1,190 @@
+"""CLI entry point for the AI Movie Production Pipeline."""
+
+import argparse
+import json
+import os
+import sys
+
+from dotenv import load_dotenv
+
+
+def main():
+    load_dotenv()
+
+    parser = argparse.ArgumentParser(description="AI Movie Production Pipeline — Phase 1")
+    parser.add_argument("--script", type=str, help="Path to .fountain script file")
+    parser.add_argument("--project", type=str, help="Project name (determines output directory)")
+    parser.add_argument("--model", type=str, default="claude-sonnet-4-20250514", help="Model ID")
+    parser.add_argument("--scene", type=int, default=None, help="Process only this scene number")
+    parser.add_argument("--dry-run", action="store_true", help="Validate inputs only, no AI calls")
+    parser.add_argument("--force", action="store_true", help="Ignore cache, re-run even if unchanged")
+    parser.add_argument("--test", action="store_true", help="Run test suite against test_scripts/")
+    parser.add_argument("--output-dir", type=str, default="output", help="Base output directory")
+
+    args = parser.parse_args()
+
+    if args.test:
+        run_tests(args.model, args.output_dir)
+        return
+
+    if not args.script or not args.project:
+        parser.error("--script and --project are required (unless using --test)")
+
+    api_key = os.environ.get("ANTHROPIC_API_KEY")
+    if not api_key and not args.dry_run:
+        print("ERROR: ANTHROPIC_API_KEY not set. Set it in .env or environment.")
+        sys.exit(1)
+
+    if not os.path.exists(args.script):
+        print(f"ERROR: Script file not found: {args.script}")
+        sys.exit(1)
+
+    from src.execution.runner import run_phase1
+
+    result = run_phase1(
+        script_path=args.script,
+        project_name=args.project,
+        api_key=api_key or "",
+        model=args.model,
+        output_dir=args.output_dir,
+        scene_filter=args.scene,
+        dry_run=args.dry_run,
+        force=args.force,
+    )
+
+    if not result.success:
+        print(f"\nPIPELINE FAILED: {result.stop_reason}")
+        sys.exit(1)
+
+    print("\nPIPELINE COMPLETE")
+    sys.exit(0)
+
+
+def run_tests(model: str, output_dir: str):
+    """Run test suite against all scripts in test_scripts/."""
+    api_key = os.environ.get("ANTHROPIC_API_KEY")
+    if not api_key:
+        print("ERROR: ANTHROPIC_API_KEY required for tests")
+        sys.exit(1)
+
+    test_dir = os.path.join(os.path.dirname(__file__), "test_scripts")
+    expected_dir = os.path.join(test_dir, "expected")
+
+    scripts = [f for f in os.listdir(test_dir) if f.endswith(".fountain")]
+    if not scripts:
+        print("No test scripts found in test_scripts/")
+        sys.exit(1)
+
+    from src.execution.runner import run_phase1
+
+    all_passed = True
+
+    for script_file in sorted(scripts):
+        script_path = os.path.join(test_dir, script_file)
+        project_name = f"test_{os.path.splitext(script_file)[0]}"
+        expected_file = os.path.join(expected_dir, f"{os.path.splitext(script_file)[0]}_scenes.json")
+
+        print(f"\n{'='*60}")
+        print(f"TEST: {script_file}")
+        print(f"{'='*60}")
+
+        result = run_phase1(
+            script_path=script_path,
+            project_name=project_name,
+            api_key=api_key,
+            model=model,
+            output_dir=output_dir,
+        )
+
+        # Check against expected
+        if os.path.exists(expected_file):
+            with open(expected_file, "r", encoding="utf-8") as f:
+                expected = json.load(f)
+
+            passed = True
+
+            # Scene count check (within 20%)
+            expected_count = expected.get("expected_scene_count", 0)
+            if expected_count > 0:
+                deviation = abs(result.total_scenes - expected_count) / expected_count
+                if deviation > 0.20:
+                    print(f"  FAIL: Scene count {result.total_scenes} vs expected {expected_count} (deviation {deviation:.0%})")
+                    passed = False
+                else:
+                    print(f"  PASS: Scene count {result.total_scenes} (expected {expected_count})")
+
+            # Character check — read actual output
+            actual_characters = _collect_characters(output_dir, project_name)
+            for char in expected.get("expected_characters", []):
+                if char.upper() not in {c.upper() for c in actual_characters}:
+                    print(f"  FAIL: Expected character '{char}' not found")
+                    passed = False
+                else:
+                    print(f"  PASS: Character '{char}' found")
+
+            # Hallucination check
+            for char in expected.get("must_not_contain_characters", []):
+                if char.upper() in {c.upper() for c in actual_characters}:
+                    print(f"  FAIL: Hallucinated character '{char}' found")
+                    passed = False
+
+            # Location check
+            actual_locations = _collect_locations(output_dir, project_name)
+            for loc in expected.get("expected_locations", []):
+                if loc.upper() not in {l.upper() for l in actual_locations}:
+                    print(f"  FAIL: Expected location '{loc}' not found")
+                    passed = False
+                else:
+                    print(f"  PASS: Location '{loc}' found")
+
+            if passed:
+                print(f"  RESULT: PASSED")
+            else:
+                print(f"  RESULT: FAILED")
+                all_passed = False
+        else:
+            print(f"  No expected output file — skipping regression checks")
+            if not result.success:
+                all_passed = False
+
+    print(f"\n{'='*60}")
+    if all_passed:
+        print("ALL TESTS PASSED")
+        sys.exit(0)
+    else:
+        print("SOME TESTS FAILED")
+        sys.exit(1)
+
+
+def _collect_characters(output_dir: str, project_name: str) -> set[str]:
+    """Collect all character names from L2 scene outputs."""
+    l2_dir = os.path.join(output_dir, project_name, "L2")
+    characters: set[str] = set()
+    if not os.path.exists(l2_dir):
+        return characters
+    for f in os.listdir(l2_dir):
+        if f.startswith("scene_") and f.endswith(".json") and f != "latest.json":
+            with open(os.path.join(l2_dir, f), "r", encoding="utf-8") as fh:
+                data = json.load(fh)
+                characters.update(data.get("characters_present", []))
+    return characters
+
+
+def _collect_locations(output_dir: str, project_name: str) -> set[str]:
+    """Collect all location names from L2 scene outputs."""
+    l2_dir = os.path.join(output_dir, project_name, "L2")
+    locations: set[str] = set()
+    if not os.path.exists(l2_dir):
+        return locations
+    for f in os.listdir(l2_dir):
+        if f.startswith("scene_") and f.endswith(".json") and f != "latest.json":
+            with open(os.path.join(l2_dir, f), "r", encoding="utf-8") as fh:
+                data = json.load(fh)
+                loc = data.get("location", "")
+                if loc:
+                    locations.add(loc)
+    return locations
+
+
+if __name__ == "__main__":
+    main()
diff --git a/src/__init__.py b/src/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/config.py b/src/config.py
new file mode 100644
index 0000000..5db9b57
--- /dev/null
+++ b/src/config.py
@@ -0,0 +1,6 @@
+"""Project-level configuration defaults."""
+
+DEFAULT_MODEL = "claude-sonnet-4-20250514"
+DEFAULT_OUTPUT_DIR = "output"
+DEFAULT_MAX_CHUNK_CHARS = 50000
+DEFAULT_MAX_RETRIES_PER_LEVEL = 2
diff --git a/src/execution/__init__.py b/src/execution/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/execution/diff_detector.py b/src/execution/diff_detector.py
new file mode 100644
index 0000000..7409498
--- /dev/null
+++ b/src/execution/diff_detector.py
@@ -0,0 +1,53 @@
+"""Diff and drift detector — compares layer output versions."""
+
+from dataclasses import dataclass, field
+
+
+@dataclass
+class DiffReport:
+    changed: bool
+    fields_changed: list[str] = field(default_factory=list)
+    drift_categories: list[str] = field(default_factory=list)
+
+
+# Fields that map to drift categories
+_DRIFT_MAP = {
+    "character_drift": {"characters_present", "new_characters_introduced"},
+    "location_drift": {"location", "int_ext"},
+    "continuity_drift": {"continuity_notes", "dependencies"},
+    "structure_drift": {"scene_number", "scene_heading"},
+}
+
+
+def diff_outputs(previous: dict, current: dict) -> DiffReport:
+    """Compare two versions of a layer output.
+
+    Args:
+        previous: The previous version's data dict.
+        current: The new version's data dict.
+
+    Returns:
+        DiffReport with changed fields and drift categories.
+    """
+    fields_changed: list[str] = []
+    drift_categories: set[str] = set()
+
+    all_keys = set(previous.keys()) | set(current.keys())
+
+    for key in all_keys:
+        prev_val = previous.get(key)
+        curr_val = current.get(key)
+
+        if prev_val != curr_val:
+            fields_changed.append(key)
+
+            # Categorize drift
+            for category, fields in _DRIFT_MAP.items():
+                if key in fields:
+                    drift_categories.add(category)
+
+    return DiffReport(
+        changed=len(fields_changed) > 0,
+        fields_changed=fields_changed,
+        drift_categories=sorted(drift_categories),
+    )
diff --git a/src/execution/output_writer.py b/src/execution/output_writer.py
new file mode 100644
index 0000000..ca2dacb
--- /dev/null
+++ b/src/execution/output_writer.py
@@ -0,0 +1,112 @@
+"""Versioned output writer — writes layer outputs, never overwrites."""
+
+import hashlib
+import json
+import os
+from pydantic import BaseModel
+
+
+class OutputWriter:
+    def __init__(self, project_name: str, output_dir: str = "output"):
+        self.project_name = project_name
+        self.output_dir = output_dir
+
+    def write(self, layer_id: str, scene_id: int | None, data: BaseModel) -> dict:
+        """Write a layer output to a versioned JSON file.
+
+        Returns:
+            {"path": str, "version": int, "hash": str}
+        """
+        layer_dir = os.path.join(self.output_dir, self.project_name, layer_id)
+        os.makedirs(layer_dir, exist_ok=True)
+
+        # Determine next version
+        prefix = f"scene_{scene_id:03d}" if scene_id is not None else "output"
+        version = self._next_version(layer_dir, prefix)
+
+        # Serialize
+        data_dict = data.model_dump()
+        data_json = json.dumps(data_dict, indent=2, ensure_ascii=False)
+        data_hash = hashlib.sha256(data_json.encode()).hexdigest()
+
+        # Write versioned file
+        filename = f"{prefix}_v{version}.json"
+        filepath = os.path.join(layer_dir, filename)
+        with open(filepath, "w", encoding="utf-8") as f:
+            f.write(data_json)
+
+        # Update latest manifest
+        self._update_latest(layer_dir, scene_id, version)
+
+        return {"path": filepath, "version": version, "hash": f"sha256:{data_hash}"}
+
+    def write_raw(self, layer_id: str, scene_id: int | None, data: dict) -> dict:
+        """Write a raw dict (not a Pydantic model) to a versioned JSON file."""
+        layer_dir = os.path.join(self.output_dir, self.project_name, layer_id)
+        os.makedirs(layer_dir, exist_ok=True)
+
+        prefix = f"scene_{scene_id:03d}" if scene_id is not None else "output"
+        version = self._next_version(layer_dir, prefix)
+
+        data_json = json.dumps(data, indent=2, ensure_ascii=False)
+        data_hash = hashlib.sha256(data_json.encode()).hexdigest()
+
+        filename = f"{prefix}_v{version}.json"
+        filepath = os.path.join(layer_dir, filename)
+        with open(filepath, "w", encoding="utf-8") as f:
+            f.write(data_json)
+
+        self._update_latest(layer_dir, scene_id, version)
+
+        return {"path": filepath, "version": version, "hash": f"sha256:{data_hash}"}
+
+    def read_latest(self, layer_id: str, scene_id: int | None) -> dict | None:
+        """Read the latest version of a layer output."""
+        layer_dir = os.path.join(self.output_dir, self.project_name, layer_id)
+        latest_path = os.path.join(layer_dir, "latest.json")
+
+        if not os.path.exists(latest_path):
+            return None
+
+        with open(latest_path, "r", encoding="utf-8") as f:
+            manifest = json.load(f)
+
+        key = str(scene_id) if scene_id is not None else "output"
+        version = manifest.get(key)
+        if version is None:
+            return None
+
+        return self.read_version(layer_id, scene_id, version)
+
+    def read_version(self, layer_id: str, scene_id: int | None, version: int) -> dict | None:
+        """Read a specific version of a layer output."""
+        layer_dir = os.path.join(self.output_dir, self.project_name, layer_id)
+        prefix = f"scene_{scene_id:03d}" if scene_id is not None else "output"
+        filepath = os.path.join(layer_dir, f"{prefix}_v{version}.json")
+
+        if not os.path.exists(filepath):
+            return None
+
+        with open(filepath, "r", encoding="utf-8") as f:
+            return json.load(f)
+
+    def _next_version(self, layer_dir: str, prefix: str) -> int:
+        """Find the next available version number."""
+        version = 1
+        while os.path.exists(os.path.join(layer_dir, f"{prefix}_v{version}.json")):
+            version += 1
+        return version
+
+    def _update_latest(self, layer_dir: str, scene_id: int | None, version: int):
+        """Update the latest.json manifest."""
+        latest_path = os.path.join(layer_dir, "latest.json")
+        manifest = {}
+        if os.path.exists(latest_path):
+            with open(latest_path, "r", encoding="utf-8") as f:
+                manifest = json.load(f)
+
+        key = str(scene_id) if scene_id is not None else "output"
+        manifest[key] = version
+
+        with open(latest_path, "w", encoding="utf-8") as f:
+            json.dump(manifest, f, indent=2)
diff --git a/src/execution/retry.py b/src/execution/retry.py
new file mode 100644
index 0000000..44e8e42
--- /dev/null
+++ b/src/execution/retry.py
@@ -0,0 +1,92 @@
+"""Retry and escalation engine — 4-level failure escalation."""
+
+import time
+from dataclasses import dataclass, field
+from typing import Callable, Any
+
+
+@dataclass
+class FailureRecord:
+    scene_id: int | None
+    layer_id: str
+    escalation_level: int
+    error: str
+    attempts: list[dict] = field(default_factory=list)
+
+
+def execute_with_retry(
+    fn: Callable,
+    input_data: Any,
+    layer_id: str,
+    scene_id: int | None = None,
+    fallback_fn: Callable | None = None,
+    max_attempts_per_level: int = 2,
+) -> Any | FailureRecord:
+    """Execute a function with 4-level escalation on failure.
+
+    Level 1: Retry same config (up to max_attempts_per_level)
+    Level 2: Retry same config again (placeholder for modified prompt in future)
+    Level 3: Call fallback_fn if provided
+    Level 4: Return FailureRecord
+
+    Args:
+        fn: The function to execute. Takes input_data as sole argument.
+        input_data: Passed to fn.
+        layer_id: For logging in FailureRecord.
+        scene_id: For logging in FailureRecord.
+        fallback_fn: Optional simplified extraction function for Level 3.
+        max_attempts_per_level: Max attempts at each escalation level.
+
+    Returns:
+        fn's return value on success, or FailureRecord if all levels exhausted.
+    """
+    attempts: list[dict] = []
+
+    # Level 1: Retry same config
+    for attempt in range(max_attempts_per_level):
+        try:
+            result = fn(input_data)
+            return result
+        except Exception as e:
+            attempts.append({
+                "level": 1,
+                "attempt": attempt + 1,
+                "error": str(e),
+                "timestamp": time.strftime("%Y-%m-%dT%H:%M:%S.000Z", time.gmtime()),
+            })
+
+    # Level 2: Retry again (future: modified prompt)
+    for attempt in range(max_attempts_per_level):
+        try:
+            result = fn(input_data)
+            return result
+        except Exception as e:
+            attempts.append({
+                "level": 2,
+                "attempt": attempt + 1,
+                "error": str(e),
+                "timestamp": time.strftime("%Y-%m-%dT%H:%M:%S.000Z", time.gmtime()),
+            })
+
+    # Level 3: Fallback
+    if fallback_fn:
+        for attempt in range(max_attempts_per_level):
+            try:
+                result = fallback_fn(input_data)
+                return result
+            except Exception as e:
+                attempts.append({
+                    "level": 3,
+                    "attempt": attempt + 1,
+                    "error": str(e),
+                    "timestamp": time.strftime("%Y-%m-%dT%H:%M:%S.000Z", time.gmtime()),
+                })
+
+    # Level 4: Human intervention
+    return FailureRecord(
+        scene_id=scene_id,
+        layer_id=layer_id,
+        escalation_level=4,
+        error="All escalation levels exhausted",
+        attempts=attempts,
+    )
diff --git a/src/execution/runner.py b/src/execution/runner.py
new file mode 100644
index 0000000..dc637a0
--- /dev/null
+++ b/src/execution/runner.py
@@ -0,0 +1,211 @@
+"""Pipeline runner — orchestrates Layer 1 → Layer 2 end-to-end."""
+
+import hashlib
+import json
+import os
+from dataclasses import dataclass, field
+
+from src.ingestion.fountain_parser import parse_fountain
+from src.ingestion.normalizer import normalize, NormalizationError
+from src.understanding.extractor import extract_scenes, ExtractionError
+from src.understanding.chunker import chunk_script
+from src.schemas.scene import Scene
+from src.schemas.scene_array import SceneArray
+from src.validators.schema_validator import validate, ValidationResult
+from src.validators.scene_validator import validate_scenes, ValidationWarning
+from src.logging.layer_logger import LayerLogger
+from src.execution.output_writer import OutputWriter
+from src.execution.retry import execute_with_retry, FailureRecord
+from src.execution.stop_conditions import evaluate_stop
+from src.execution.diff_detector import diff_outputs
+
+
+@dataclass
+class PipelineResult:
+    success: bool
+    total_scenes: int = 0
+    valid_scenes: int = 0
+    flagged_scenes: int = 0
+    failed_scenes: int = 0
+    warnings: list[ValidationWarning] = field(default_factory=list)
+    stop_reason: str | None = None
+
+
+def run_phase1(
+    script_path: str,
+    project_name: str,
+    api_key: str,
+    model: str = "claude-sonnet-4-20250514",
+    output_dir: str = "output",
+    scene_filter: int | None = None,
+    dry_run: bool = False,
+    force: bool = False,
+) -> PipelineResult:
+    """Run the Phase 1 pipeline: Layer 1 (ingestion) → Layer 2 (understanding).
+
+    Args:
+        script_path: Path to .fountain file.
+        project_name: Project name for output directory.
+        api_key: Anthropic API key.
+        model: Model ID.
+        output_dir: Base output directory.
+        scene_filter: If set, only process this scene number in Layer 2.
+        dry_run: If True, validate inputs only — no AI calls.
+        force: If True, ignore cache and re-run even if input unchanged.
+
+    Returns:
+        PipelineResult with counts and any stop reason.
+    """
+    logger = LayerLogger(project_name, output_dir)
+    writer = OutputWriter(project_name, output_dir)
+
+    # Resolve prompt contract path
+    prompts_dir = os.path.join(os.path.dirname(os.path.dirname(os.path.dirname(__file__))), "src", "prompts")
+    contract_path = os.path.join(prompts_dir, "L2_scene_extraction_v1.json")
+
+    # ── LAYER 1: INGESTION ──────────────────────────────────────────────
+    print(f"[L1] Parsing: {script_path}")
+    run_id = logger.start("L1")
+
+    # Read file
+    with open(script_path, "r", encoding="utf-8") as f:
+        raw_text = f.read()
+
+    input_hash = f"sha256:{hashlib.sha256(raw_text.encode()).hexdigest()}"
+
+    # Parse
+    try:
+        elements = parse_fountain(raw_text)
+        normalized = normalize(elements)
+    except (NormalizationError, Exception) as e:
+        logger.finish(run_id, input_hash, None, "failed", failure_state=str(e))
+        print(f"[L1] STOP: {e}")
+        return PipelineResult(success=False, stop_reason=f"Layer 1 failed: {e}")
+
+    # Write L1 output
+    l1_result = writer.write("L1", None, normalized)
+    logger.finish(run_id, input_hash, l1_result["hash"], "valid")
+
+    heading_count = sum(1 for e in normalized.elements if e.type == "scene_heading")
+    print(f"[L1] Done: {len(normalized.elements)} elements, {heading_count} scene headings")
+
+    if dry_run:
+        print(f"[DRY RUN] Layer 1 valid. {heading_count} scenes would be extracted.")
+        return PipelineResult(success=True, total_scenes=heading_count)
+
+    # ── LAYER 2: UNDERSTANDING ──────────────────────────────────────────
+    print(f"[L2] Extracting scenes...")
+
+    # Chunk if needed
+    chunks = chunk_script(normalized)
+    print(f"[L2] Processing in {len(chunks)} chunk(s)")
+
+    all_results: list[ValidationResult | FailureRecord] = []
+    all_valid_scenes: list[Scene] = []
+    all_warnings: list[ValidationWarning] = []
+    total_token_usage = {"input": 0, "output": 0}
+
+    for chunk_idx, chunk in enumerate(chunks):
+        # Extract scenes from this chunk
+        def do_extract(data):
+            return extract_scenes(data, contract_path, api_key, model)
+
+        run_id = logger.start("L2", scene_id=chunk_idx)
+        chunk_input_hash = f"sha256:{hashlib.sha256(json.dumps([e.model_dump() for e in chunk.elements]).encode()).hexdigest()}"
+
+        extraction = execute_with_retry(
+            fn=do_extract,
+            input_data=chunk,
+            layer_id="L2",
+            scene_id=chunk_idx,
+        )
+
+        if isinstance(extraction, FailureRecord):
+            logger.finish(run_id, chunk_input_hash, None, "failed",
+                          failure_state=extraction.error, retry_count=len(extraction.attempts))
+            all_results.append(extraction)
+            print(f"[L2] Chunk {chunk_idx + 1}: FAILED after {len(extraction.attempts)} attempts")
+            continue
+
+        # Validate each scene
+        total_token_usage["input"] += extraction.token_usage["input"]
+        total_token_usage["output"] += extraction.token_usage["output"]
+
+        for raw_scene in extraction.raw_scenes:
+            scene_num = raw_scene.get("scene_number", "?")
+
+            # Skip if scene_filter is set and doesn't match
+            if scene_filter is not None and scene_num != scene_filter:
+                continue
+
+            scene_run_id = logger.start("L2", scene_id=scene_num if isinstance(scene_num, int) else None)
+            scene_input_hash = f"sha256:{hashlib.sha256(json.dumps(raw_scene).encode()).hexdigest()}"
+
+            result = validate(raw_scene, Scene)
+            all_results.append(result)
+
+            if result.status == "failed":
+                logger.finish(scene_run_id, scene_input_hash, None, "failed",
+                              failure_state="; ".join(result.errors))
+                print(f"[L2] Scene {scene_num}: FAILED validation — {result.errors}")
+            else:
+                # Write scene output
+                scene_out = writer.write_raw("L2", scene_num if isinstance(scene_num, int) else 0, raw_scene)
+
+                # Check for drift against previous version
+                if isinstance(scene_num, int):
+                    prev = writer.read_version("L2", scene_num, scene_out["version"] - 1)
+                    if prev:
+                        diff = diff_outputs(prev, raw_scene)
+                        if diff.changed:
+                            print(f"[L2] Scene {scene_num}: DRIFT detected — {diff.drift_categories}")
+
+                logger.finish(scene_run_id, scene_input_hash, scene_out["hash"], result.status,
+                              token_usage=extraction.token_usage)
+
+                if result.status == "flagged":
+                    print(f"[L2] Scene {scene_num}: FLAGGED (contains UNKNOWN values)")
+                else:
+                    print(f"[L2] Scene {scene_num}: valid")
+
+                all_valid_scenes.append(result.data)
+
+        logger.finish(run_id, chunk_input_hash, "chunk", "valid",
+                      token_usage=extraction.token_usage)
+
+    # Run scene-level semantic validation
+    if all_valid_scenes:
+        scene_array = SceneArray(scenes=all_valid_scenes)
+        all_warnings = validate_scenes(scene_array, heading_count)
+        for w in all_warnings:
+            print(f"[L2] WARNING: {w.message}")
+
+    # Evaluate stop conditions
+    stop = evaluate_stop(all_results, heading_count)
+    if stop.should_stop:
+        print(f"[L2] STOP CONDITION: {stop.reason}")
+        return PipelineResult(
+            success=False,
+            total_scenes=heading_count,
+            valid_scenes=sum(1 for r in all_results if isinstance(r, ValidationResult) and r.status == "valid"),
+            flagged_scenes=sum(1 for r in all_results if isinstance(r, ValidationResult) and r.status == "flagged"),
+            failed_scenes=sum(1 for r in all_results if isinstance(r, FailureRecord) or (isinstance(r, ValidationResult) and r.status == "failed")),
+            warnings=all_warnings,
+            stop_reason=stop.reason,
+        )
+
+    valid = sum(1 for r in all_results if isinstance(r, ValidationResult) and r.status == "valid")
+    flagged = sum(1 for r in all_results if isinstance(r, ValidationResult) and r.status == "flagged")
+    failed = sum(1 for r in all_results if isinstance(r, FailureRecord) or (isinstance(r, ValidationResult) and r.status == "failed"))
+
+    print(f"\n[DONE] Scenes: {valid} valid, {flagged} flagged, {failed} failed")
+    print(f"[DONE] Tokens: {total_token_usage['input']} in / {total_token_usage['output']} out")
+
+    return PipelineResult(
+        success=True,
+        total_scenes=heading_count,
+        valid_scenes=valid,
+        flagged_scenes=flagged,
+        failed_scenes=failed,
+        warnings=all_warnings,
+    )
diff --git a/src/execution/stop_conditions.py b/src/execution/stop_conditions.py
new file mode 100644
index 0000000..934481e
--- /dev/null
+++ b/src/execution/stop_conditions.py
@@ -0,0 +1,59 @@
+"""Stop condition evaluator — decides when the pipeline must halt."""
+
+from dataclasses import dataclass
+from typing import Literal
+from src.validators.schema_validator import ValidationResult
+from src.execution.retry import FailureRecord
+
+
+@dataclass
+class StopDecision:
+    should_stop: bool
+    reason: str | None
+    scope: Literal["unit", "global"] | None
+
+
+def evaluate_stop(
+    results: list[ValidationResult | FailureRecord],
+    total_scenes: int,
+) -> StopDecision:
+    """Evaluate whether a stop condition has been triggered.
+
+    Args:
+        results: List of validation results and/or failure records from a layer run.
+        total_scenes: Total number of scenes that were expected to be processed.
+
+    Returns:
+        StopDecision indicating whether to halt and why.
+    """
+    if total_scenes == 0:
+        return StopDecision(
+            should_stop=True,
+            reason="Zero scenes to process",
+            scope="global",
+        )
+
+    failed_count = 0
+    for result in results:
+        if isinstance(result, FailureRecord):
+            failed_count += 1
+        elif isinstance(result, ValidationResult) and result.status == "failed":
+            failed_count += 1
+
+    # Global stop: all scenes failed
+    if failed_count == total_scenes:
+        return StopDecision(
+            should_stop=True,
+            reason=f"All {total_scenes} scenes failed",
+            scope="global",
+        )
+
+    # Global stop: >30% failure rate
+    if total_scenes > 0 and failed_count / total_scenes > 0.30:
+        return StopDecision(
+            should_stop=True,
+            reason=f"{failed_count}/{total_scenes} scenes failed ({failed_count/total_scenes:.0%} > 30% threshold)",
+            scope="global",
+        )
+
+    return StopDecision(should_stop=False, reason=None, scope=None)
diff --git a/src/ingestion/__init__.py b/src/ingestion/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/ingestion/fountain_parser.py b/src/ingestion/fountain_parser.py
new file mode 100644
index 0000000..3fa9f15
--- /dev/null
+++ b/src/ingestion/fountain_parser.py
@@ -0,0 +1,210 @@
+"""Fountain format parser. Deterministic code — no AI.
+
+Follows the Fountain spec: https://fountain.io/syntax
+Converts raw .fountain text into a list of ScriptElement objects.
+"""
+
+import re
+from src.schemas.script_element import ScriptElement
+
+
+# Fountain scene heading prefixes
+_SCENE_HEADING_PREFIXES = (
+    "INT ", "INT.", "EXT ", "EXT.", "INT/EXT", "INT./EXT", "I/E",
+    "int ", "int.", "ext ", "ext.", "int/ext", "int./ext", "i/e",
+)
+
+_TRANSITION_PATTERN = re.compile(r"^[A-Z\s]+TO:$")
+_FORCED_SCENE_HEADING = re.compile(r"^\.[A-Z]")
+_FORCED_TRANSITION = re.compile(r"^>(?!<)")
+_CENTERED_TEXT = re.compile(r"^>.*<$")
+_PARENTHETICAL = re.compile(r"^\(.*\)$")
+
+
+def parse_fountain(text: str) -> list[ScriptElement]:
+    """Parse Fountain-formatted text into ScriptElement list.
+
+    Args:
+        text: Raw contents of a .fountain file.
+
+    Returns:
+        Ordered list of ScriptElement objects with line numbers.
+    """
+    lines = text.replace("\r\n", "\n").split("\n")
+    elements: list[ScriptElement] = []
+    i = 0
+
+    while i < len(lines):
+        line = lines[i]
+        stripped = line.strip()
+        line_num = i + 1  # 1-indexed
+
+        # Skip empty lines
+        if not stripped:
+            i += 1
+            continue
+
+        # Title page (key: value at start of document) — skip
+        if i < _find_first_content_line(lines) and ":" in stripped:
+            i += 1
+            continue
+
+        # Boneyard (/* ... */) — skip
+        if stripped.startswith("/*"):
+            while i < len(lines) and "*/" not in lines[i]:
+                i += 1
+            i += 1
+            continue
+
+        # Notes ([[ ... ]]) — skip
+        if stripped.startswith("[[") and stripped.endswith("]]"):
+            i += 1
+            continue
+
+        # Section headers (# ) — skip (metadata, not story)
+        if stripped.startswith("#"):
+            i += 1
+            continue
+
+        # Synopsis (= ) — skip (metadata)
+        if stripped.startswith("=") and not stripped.startswith("=="):
+            i += 1
+            continue
+
+        # Page break (===) — skip
+        if stripped.startswith("==="):
+            i += 1
+            continue
+
+        # Forced scene heading (.LOCATION)
+        if _FORCED_SCENE_HEADING.match(stripped):
+            elements.append(ScriptElement(
+                type="scene_heading",
+                text=stripped[1:].strip(),  # remove leading dot
+                line_number=line_num,
+            ))
+            i += 1
+            continue
+
+        # Standard scene heading
+        if stripped.upper().startswith(_SCENE_HEADING_PREFIXES):
+            elements.append(ScriptElement(
+                type="scene_heading",
+                text=stripped,
+                line_number=line_num,
+            ))
+            i += 1
+            continue
+
+        # Forced transition (> TEXT)
+        if _FORCED_TRANSITION.match(stripped):
+            elements.append(ScriptElement(
+                type="transition",
+                text=stripped[1:].strip(),
+                line_number=line_num,
+            ))
+            i += 1
+            continue
+
+        # Standard transition (SOMETHING TO:)
+        if _TRANSITION_PATTERN.match(stripped):
+            elements.append(ScriptElement(
+                type="transition",
+                text=stripped,
+                line_number=line_num,
+            ))
+            i += 1
+            continue
+
+        # Centered text — treat as action
+        if _CENTERED_TEXT.match(stripped):
+            elements.append(ScriptElement(
+                type="action",
+                text=stripped[1:-1].strip(),
+                line_number=line_num,
+            ))
+            i += 1
+            continue
+
+        # Character + Dialogue block
+        if _is_character_line(stripped, lines, i):
+            # Character name
+            char_name = stripped.rstrip("^").strip()  # remove dual dialogue caret
+            if char_name.startswith("@"):
+                char_name = char_name[1:]  # forced character
+            elements.append(ScriptElement(
+                type="character",
+                text=char_name,
+                line_number=line_num,
+            ))
+            i += 1
+
+            # Consume parentheticals and dialogue that follow
+            while i < len(lines):
+                next_line = lines[i].strip()
+                if not next_line:
+                    break
+                if _PARENTHETICAL.match(next_line):
+                    elements.append(ScriptElement(
+                        type="parenthetical",
+                        text=next_line,
+                        line_number=i + 1,
+                    ))
+                else:
+                    elements.append(ScriptElement(
+                        type="dialogue",
+                        text=next_line,
+                        line_number=i + 1,
+                    ))
+                i += 1
+            continue
+
+        # Default: action
+        elements.append(ScriptElement(
+            type="action",
+            text=stripped,
+            line_number=line_num,
+        ))
+        i += 1
+
+    return elements
+
+
+def _is_character_line(stripped: str, lines: list[str], index: int) -> bool:
+    """Determine if a line is a character cue.
+
+    Fountain rules:
+    - All uppercase
+    - Followed by dialogue (non-empty next line after possible blank)
+    - May end with ^ (dual dialogue)
+    - May start with @ (forced character)
+    """
+    if stripped.startswith("@"):
+        return True
+
+    # Must be uppercase (ignoring parenthetical extensions like (V.O.), (O.S.))
+    name_part = re.sub(r"\(.*?\)", "", stripped).strip().rstrip("^").strip()
+    if not name_part:
+        return False
+    if not name_part.replace(" ", "").replace(".", "").replace("'", "").replace("-", "").isalpha():
+        return False
+    if name_part != name_part.upper():
+        return False
+
+    # Must have a non-empty line following (the dialogue)
+    next_i = index + 1
+    if next_i < len(lines) and lines[next_i].strip():
+        return True
+
+    return False
+
+
+def _find_first_content_line(lines: list[str]) -> int:
+    """Find the first line that isn't part of the title page.
+
+    Title page ends at the first blank line.
+    """
+    for i, line in enumerate(lines):
+        if not line.strip():
+            return i + 1
+    return 0
diff --git a/src/ingestion/normalizer.py b/src/ingestion/normalizer.py
new file mode 100644
index 0000000..232729a
--- /dev/null
+++ b/src/ingestion/normalizer.py
@@ -0,0 +1,29 @@
+"""Normalizer — wraps parsed ScriptElements into a validated NormalizedScript."""
+
+from src.schemas.script_element import ScriptElement
+from src.schemas.normalized_script import NormalizedScript
+
+
+class NormalizationError(Exception):
+    pass
+
+
+def normalize(elements: list[ScriptElement]) -> NormalizedScript:
+    """Validate and wrap ScriptElements into NormalizedScript.
+
+    Args:
+        elements: Output from fountain_parser.parse_fountain()
+
+    Returns:
+        Validated NormalizedScript.
+
+    Raises:
+        NormalizationError: If elements are empty or contain no scene headings.
+    """
+    if not elements:
+        raise NormalizationError("No elements to normalize — input is empty")
+
+    try:
+        return NormalizedScript(elements=elements)
+    except ValueError as e:
+        raise NormalizationError(str(e)) from e
diff --git a/src/logging/__init__.py b/src/logging/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/logging/layer_logger.py b/src/logging/layer_logger.py
new file mode 100644
index 0000000..ef1d512
--- /dev/null
+++ b/src/logging/layer_logger.py
@@ -0,0 +1,63 @@
+"""Structured JSON logger for pipeline layer executions."""
+
+import json
+import os
+import time
+import uuid
+from src.schemas.layer_log import LayerLog, TokenUsage
+
+
+class LayerLogger:
+    def __init__(self, project_name: str, output_dir: str = "output"):
+        self.project_name = project_name
+        self.log_dir = os.path.join(output_dir, project_name, "logs")
+        os.makedirs(self.log_dir, exist_ok=True)
+        self._runs: dict[str, dict] = {}
+
+    def start(self, layer_id: str, scene_id: int | None = None) -> str:
+        """Begin tracking a layer execution. Returns run_id."""
+        run_id = uuid.uuid4().hex[:8]
+        self._runs[run_id] = {
+            "layer_id": layer_id,
+            "scene_id": scene_id,
+            "start_time": time.time(),
+        }
+        return run_id
+
+    def finish(
+        self,
+        run_id: str,
+        input_hash: str,
+        output_hash: str | None,
+        validation_result: str,
+        failure_state: str | None = None,
+        retry_count: int = 0,
+        token_usage: dict | None = None,
+    ) -> LayerLog:
+        """Finalize a layer execution and write log to disk."""
+        run = self._runs.pop(run_id)
+        execution_time_ms = int((time.time() - run["start_time"]) * 1000)
+
+        log = LayerLog(
+            layer_id=run["layer_id"],
+            scene_id=run["scene_id"],
+            run_id=run_id,
+            timestamp=time.strftime("%Y-%m-%dT%H:%M:%S.000Z", time.gmtime()),
+            input_hash=input_hash,
+            output_hash=output_hash,
+            validation_result=validation_result,
+            execution_time_ms=execution_time_ms,
+            failure_state=failure_state,
+            retry_count=retry_count,
+            token_usage=TokenUsage(**token_usage) if token_usage else None,
+        )
+
+        # Write log file
+        scene_part = f"_scene_{run['scene_id']:03d}" if run["scene_id"] is not None else ""
+        filename = f"{run['layer_id']}{scene_part}_run_{run_id}.json"
+        filepath = os.path.join(self.log_dir, filename)
+
+        with open(filepath, "w", encoding="utf-8") as f:
+            json.dump(log.model_dump(), f, indent=2)
+
+        return log
diff --git a/src/prompts/L2_continuity_check_v1.json b/src/prompts/L2_continuity_check_v1.json
new file mode 100644
index 0000000..821e785
--- /dev/null
+++ b/src/prompts/L2_continuity_check_v1.json
@@ -0,0 +1,17 @@
+{
+  "contract_id": "L2_continuity_check_v1",
+  "layer": "L2",
+  "version": 1,
+  "purpose": "Verify continuity flags across extracted scenes",
+  "required_output_schema": "SceneArray",
+  "forbidden_behaviors": [
+    "Do not add new scenes",
+    "Do not remove existing scenes",
+    "Do not change scene_number or scene_heading values",
+    "Do not invent continuity relationships that are not supported by the script",
+    "Do not modify action_summary or dialogue_summary"
+  ],
+  "system_prompt": "You are a continuity verification engine. You will receive a JSON array of extracted scenes from a screenplay.\n\nYour job is to review and correct ONLY the following fields:\n- continuity_notes: Ensure these accurately reflect state changes (injuries, wardrobe changes, time jumps, emotional shifts) that affect other scenes\n- dependencies: Ensure these accurately reference scene numbers that this scene continues from or references\n\nDo NOT modify any other fields. Return the full scenes array with corrections applied.\n\nReturn ONLY a JSON object with key \"scenes\" containing the corrected array. No additional text.",
+  "user_prompt_template": "Review and correct continuity fields in these extracted scenes:\n\n{{scenes_json}}",
+  "max_output_tokens": 8000
+}
diff --git a/src/prompts/L2_scene_extraction_v1.json b/src/prompts/L2_scene_extraction_v1.json
new file mode 100644
index 0000000..ccb192a
--- /dev/null
+++ b/src/prompts/L2_scene_extraction_v1.json
@@ -0,0 +1,19 @@
+{
+  "contract_id": "L2_scene_extraction_v1",
+  "layer": "L2",
+  "version": 1,
+  "purpose": "Extract structured scene metadata from normalized screenplay text",
+  "required_output_schema": "SceneArray",
+  "forbidden_behaviors": [
+    "Do not invent characters not present in the script text",
+    "Do not invent locations not present in the script text",
+    "Do not invent props not described or implied in the script text",
+    "Do not merge distinct scenes into one",
+    "Do not split a single scene into multiple scenes",
+    "Do not summarize dialogue as action or vice versa",
+    "Do not leave any field empty — use UNKNOWN if the information cannot be determined"
+  ],
+  "system_prompt": "You are a script analysis engine. Your job is to extract structured scene metadata from a screenplay.\n\nYou must return a JSON object with a single key \"scenes\" containing an array of scene objects.\n\nEach scene object MUST have ALL of the following fields (no exceptions):\n- scene_number (int): Sequential scene number starting from 1\n- scene_heading (string): The full scene heading line (e.g. \"INT. APARTMENT - NIGHT\")\n- location (string): The location name derived from the heading\n- time_of_day (string): One of: DAWN, MORNING, DAY, AFTERNOON, DUSK, NIGHT, UNKNOWN\n- int_ext (string): One of: INTERIOR, EXTERIOR, BOTH\n- characters_present (string[]): All characters present in the scene\n- new_characters_introduced (string[]): Characters appearing for the first time in the script\n- props (string[]): Significant objects mentioned or implied\n- wardrobe_clues (string[]): Described or implied clothing/appearance details\n- emotional_tone (string): The dominant mood of the scene\n- visual_beats (string[]): Key visual moments or images\n- action_summary (string): 2-3 sentence summary of scene action\n- dialogue_summary (string): 1-2 sentence summary of key dialogue\n- continuity_notes (string[]): State changes relevant to other scenes\n- dependencies (int[]): Scene numbers this scene references or continues from\n\nRULES:\n- Do not invent characters not present in the script text\n- Do not invent locations not present in the script text\n- Do not invent props not described or implied in the script text\n- Do not merge distinct scenes into one\n- Do not split a single scene into multiple scenes\n- Do not summarize dialogue as action or vice versa\n- Do not leave any field empty — use UNKNOWN if the information cannot be determined\n- For list fields where nothing applies, use an empty array []\n- Return ONLY the JSON object, no additional text",
+  "user_prompt_template": "Extract structured scene metadata from the following screenplay:\n\n{{script_text}}",
+  "max_output_tokens": 8000
+}
diff --git a/src/prompts/contract_schema.json b/src/prompts/contract_schema.json
new file mode 100644
index 0000000..b67a9e7
--- /dev/null
+++ b/src/prompts/contract_schema.json
@@ -0,0 +1,27 @@
+{
+  "$schema": "https://json-schema.org/draft/2020-12/schema",
+  "type": "object",
+  "required": [
+    "contract_id",
+    "layer",
+    "version",
+    "purpose",
+    "required_output_schema",
+    "forbidden_behaviors",
+    "system_prompt",
+    "user_prompt_template",
+    "max_output_tokens"
+  ],
+  "properties": {
+    "contract_id": { "type": "string" },
+    "layer": { "type": "string" },
+    "version": { "type": "integer", "minimum": 1 },
+    "purpose": { "type": "string" },
+    "required_output_schema": { "type": "string" },
+    "forbidden_behaviors": { "type": "array", "items": { "type": "string" } },
+    "system_prompt": { "type": "string" },
+    "user_prompt_template": { "type": "string" },
+    "max_output_tokens": { "type": "integer", "minimum": 1 }
+  },
+  "additionalProperties": false
+}
diff --git a/src/schemas/__init__.py b/src/schemas/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/schemas/department.py b/src/schemas/department.py
new file mode 100644
index 0000000..9a6a107
--- /dev/null
+++ b/src/schemas/department.py
@@ -0,0 +1,61 @@
+"""Department interpretation schemas — Layer 4. Built in Phase 3, defined now for contract stability."""
+
+from pydantic import BaseModel
+
+
+class DirectingOutput(BaseModel):
+    scene_objective: str
+    pacing_notes: str
+    key_dramatic_beats: list[str]
+    subtext_notes: str
+
+
+class CinematographyOutput(BaseModel):
+    camera_style: str
+    lens_character: str
+    movement_patterns: list[str]
+    depth_of_field_intent: str
+    color_palette_direction: str
+
+
+class LightingOutput(BaseModel):
+    key_light_direction: str
+    practical_sources: list[str]
+    mood_notes: str
+    time_of_day_requirements: str
+    contrast_ratio_intent: str
+
+
+class ProductionDesignOutput(BaseModel):
+    required_set_elements: list[str]
+    set_dressing_priorities: list[str]
+    color_texture_palette: str
+    era_period_notes: str
+    spatial_blocking_requirements: str
+
+
+class WardrobeOutput(BaseModel):
+    character_wardrobe: list[dict]
+    costume_condition: str
+    thematic_notes: str
+    changes_from_previous: str
+
+
+class PerformanceOutput(BaseModel):
+    character_states: list[dict]
+    key_shifts: list[str]
+    subtext_notes: str
+    physical_behavior_cues: list[str]
+
+
+class StoryboardOutput(BaseModel):
+    character_positions: list[str]
+    key_composition_frames: list[str]
+    spatial_relationships: list[str]
+    entry_exit_patterns: list[str]
+
+
+class SceneDepartmentBreakdown(BaseModel):
+    scene: int
+    directing: DirectingOutput
+    cinematography: CinematographyOutput
diff --git a/src/schemas/layer_log.py b/src/schemas/layer_log.py
new file mode 100644
index 0000000..ab54284
--- /dev/null
+++ b/src/schemas/layer_log.py
@@ -0,0 +1,21 @@
+from typing import Literal, Optional
+from pydantic import BaseModel
+
+
+class TokenUsage(BaseModel):
+    input: int
+    output: int
+
+
+class LayerLog(BaseModel):
+    layer_id: str
+    scene_id: Optional[int]
+    run_id: str
+    timestamp: str
+    input_hash: str
+    output_hash: Optional[str]
+    validation_result: Literal["valid", "failed", "flagged"]
+    execution_time_ms: int
+    failure_state: Optional[str]
+    retry_count: int
+    token_usage: Optional[TokenUsage]
diff --git a/src/schemas/normalized_script.py b/src/schemas/normalized_script.py
new file mode 100644
index 0000000..7ce7e4f
--- /dev/null
+++ b/src/schemas/normalized_script.py
@@ -0,0 +1,19 @@
+from pydantic import BaseModel, model_validator
+from src.schemas.script_element import ScriptElement
+
+
+class NormalizedScript(BaseModel):
+    elements: list[ScriptElement]
+
+    @model_validator(mode="after")
+    def must_have_scene_heading(self):
+        headings = [e for e in self.elements if e.type == "scene_heading"]
+        if len(headings) == 0:
+            raise ValueError("Script contains zero scene headings — cannot proceed")
+        return self
+
+    @model_validator(mode="after")
+    def must_not_be_empty(self):
+        if len(self.elements) == 0:
+            raise ValueError("Script contains no elements")
+        return self
diff --git a/src/schemas/production_bible.py b/src/schemas/production_bible.py
new file mode 100644
index 0000000..07eae25
--- /dev/null
+++ b/src/schemas/production_bible.py
@@ -0,0 +1,82 @@
+"""Production Bible schemas — Layer 3. Built in Phase 2, defined now for contract stability."""
+
+from typing import Optional
+from pydantic import BaseModel
+
+
+class Relationship(BaseModel):
+    character: str
+    nature: str
+
+
+class WardrobeState(BaseModel):
+    scene_range: list[int]
+    description: str
+
+
+class EmotionalState(BaseModel):
+    scene: int
+    state: str
+
+
+class Character(BaseModel):
+    name: str
+    aliases: list[str]
+    description: str
+    arc_summary: str
+    first_appearance: int
+    scenes_present: list[int]
+    relationships: list[Relationship]
+    wardrobe_states: list[WardrobeState]
+    emotional_arc: list[EmotionalState]
+    reference_prompt: str
+
+
+class Location(BaseModel):
+    name: str
+    description: str
+    type: str
+    scenes_used: list[int]
+    time_of_day_variants: list[str]
+    notable_features: list[str]
+    mood_associations: list[str]
+    reference_prompt: str
+
+
+class Prop(BaseModel):
+    name: str
+    description: str
+    significance: str
+    scenes_present: list[int]
+    owner_or_association: str
+    state_changes: list[EmotionalState]  # reuses {scene, state} shape
+
+
+class WardrobeEntry(BaseModel):
+    character: str
+    scene_range: list[int]
+    description: str
+    change_trigger: str
+
+
+class EmotionalBeat(BaseModel):
+    scene: int
+    dominant_tone: str
+    tension_level: int
+    arc_position: str
+
+
+class TimelineEntry(BaseModel):
+    scene: int
+    story_time: str
+    elapsed_since_previous: str
+    concurrent_with: list[int]
+
+
+class ProductionBible(BaseModel):
+    characters: list[Character]
+    locations: list[Location]
+    props: list[Prop]
+    wardrobe: list[WardrobeEntry]
+    emotional_arc: list[EmotionalBeat]
+    timeline: list[TimelineEntry]
diff --git a/src/schemas/prompt_package.py b/src/schemas/prompt_package.py
new file mode 100644
index 0000000..4f5c994
--- /dev/null
+++ b/src/schemas/prompt_package.py
@@ -0,0 +1,12 @@
+"""Prompt package schema — Layer 6. Built in Phase 5, defined now for contract stability."""
+
+from typing import Optional
+from pydantic import BaseModel
+
+
+class PromptPackage(BaseModel):
+    category: str
+    scene: int
+    prompt: str
+    source_refs: list[str]
+    negative_prompt: Optional[str] = None
diff --git a/src/schemas/scene.py b/src/schemas/scene.py
new file mode 100644
index 0000000..fb241ff
--- /dev/null
+++ b/src/schemas/scene.py
@@ -0,0 +1,19 @@
+from pydantic import BaseModel
+
+
+class Scene(BaseModel):
+    scene_number: int
+    scene_heading: str
+    location: str
+    time_of_day: str
+    int_ext: str
+    characters_present: list[str]
+    new_characters_introduced: list[str]
+    props: list[str]
+    wardrobe_clues: list[str]
+    emotional_tone: str
+    visual_beats: list[str]
+    action_summary: str
+    dialogue_summary: str
+    continuity_notes: list[str]
+    dependencies: list[int]
diff --git a/src/schemas/scene_array.py b/src/schemas/scene_array.py
new file mode 100644
index 0000000..9ddb5b8
--- /dev/null
+++ b/src/schemas/scene_array.py
@@ -0,0 +1,20 @@
+from pydantic import BaseModel, model_validator
+from src.schemas.scene import Scene
+
+
+class SceneArray(BaseModel):
+    scenes: list[Scene]
+
+    @model_validator(mode="after")
+    def must_have_scenes(self):
+        if len(self.scenes) == 0:
+            raise ValueError("SceneArray contains no scenes")
+        return self
+
+    @model_validator(mode="after")
+    def unique_scene_numbers(self):
+        numbers = [s.scene_number for s in self.scenes]
+        dupes = [n for n in numbers if numbers.count(n) > 1]
+        if dupes:
+            raise ValueError(f"Duplicate scene numbers: {set(dupes)}")
+        return self
diff --git a/src/schemas/script_element.py b/src/schemas/script_element.py
new file mode 100644
index 0000000..6427f9b
--- /dev/null
+++ b/src/schemas/script_element.py
@@ -0,0 +1,18 @@
+from typing import Literal, Optional
+from pydantic import BaseModel
+
+
+ELEMENT_TYPES = Literal[
+    "scene_heading",
+    "action",
+    "character",
+    "dialogue",
+    "parenthetical",
+    "transition",
+]
+
+
+class ScriptElement(BaseModel):
+    type: ELEMENT_TYPES
+    text: str
+    line_number: Optional[int] = None
diff --git a/src/schemas/shot.py b/src/schemas/shot.py
new file mode 100644
index 0000000..3962eae
--- /dev/null
+++ b/src/schemas/shot.py
@@ -0,0 +1,24 @@
+"""Shot schema — Layer 5. Built in Phase 4, defined now for contract stability."""
+
+from typing import Optional
+from pydantic import BaseModel
+
+
+class Shot(BaseModel):
+    shot_id: str
+    scene: int
+    order: int
+    type: str
+    movement: str
+    subject: str
+    framing_notes: str
+    duration_intent: str
+    emotional_intent: str
+    lighting_notes: str
+    lens_notes: str
+    action_description: str
+    dialogue: Optional[str]
+    transition_in: str
+    transition_out: str
+    vfx_notes: Optional[str]
+    audio_notes: Optional[str]
diff --git a/src/understanding/__init__.py b/src/understanding/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/understanding/chunker.py b/src/understanding/chunker.py
new file mode 100644
index 0000000..18652b2
--- /dev/null
+++ b/src/understanding/chunker.py
@@ -0,0 +1,63 @@
+"""Script chunker — splits long scripts at scene boundaries."""
+
+from src.schemas.normalized_script import NormalizedScript
+from src.schemas.script_element import ScriptElement
+
+
+def chunk_script(script: NormalizedScript, max_chars: int = 50000) -> list[NormalizedScript]:
+    """Split a normalized script into chunks at scene boundaries.
+
+    Args:
+        script: Full normalized script.
+        max_chars: Maximum character count per chunk (approximate, based on text content).
+
+    Returns:
+        List of NormalizedScript chunks. Each contains only complete scenes.
+    """
+    # Find scene boundary indices
+    scene_starts: list[int] = []
+    for i, elem in enumerate(script.elements):
+        if elem.type == "scene_heading":
+            scene_starts.append(i)
+
+    if not scene_starts:
+        return [script]
+
+    # Build scene groups (each group = elements from one scene heading to the next)
+    scene_groups: list[list[ScriptElement]] = []
+    for i, start in enumerate(scene_starts):
+        end = scene_starts[i + 1] if i + 1 < len(scene_starts) else len(script.elements)
+        scene_groups.append(script.elements[start:end])
+
+    # Build chunks by accumulating scenes until max_chars
+    chunks: list[NormalizedScript] = []
+    current_elements: list[ScriptElement] = []
+    current_chars = 0
+
+    for group in scene_groups:
+        group_chars = sum(len(e.text) for e in group)
+
+        # If a single scene exceeds max_chars, it becomes its own chunk
+        if group_chars > max_chars:
+            # Flush current chunk if non-empty
+            if current_elements:
+                chunks.append(NormalizedScript(elements=current_elements))
+                current_elements = []
+                current_chars = 0
+            chunks.append(NormalizedScript(elements=list(group)))
+            continue
+
+        # Would adding this scene exceed the limit?
+        if current_chars + group_chars > max_chars and current_elements:
+            chunks.append(NormalizedScript(elements=current_elements))
+            current_elements = []
+            current_chars = 0
+
+        current_elements.extend(group)
+        current_chars += group_chars
+
+    # Flush remaining
+    if current_elements:
+        chunks.append(NormalizedScript(elements=current_elements))
+
+    return chunks
diff --git a/src/understanding/extractor.py b/src/understanding/extractor.py
new file mode 100644
index 0000000..8c64472
--- /dev/null
+++ b/src/understanding/extractor.py
@@ -0,0 +1,129 @@
+"""Layer 2 AI extractor — sends normalized script to Claude, receives scene JSON."""
+
+import json
+from dataclasses import dataclass
+from anthropic import Anthropic
+from src.schemas.normalized_script import NormalizedScript
+
+
+@dataclass
+class ExtractionResult:
+    raw_scenes: list[dict]
+    token_usage: dict  # {"input": int, "output": int}
+
+
+class ExtractionError(Exception):
+    pass
+
+
+def extract_scenes(
+    script: NormalizedScript,
+    contract_path: str,
+    api_key: str,
+    model: str = "claude-sonnet-4-20250514",
+) -> ExtractionResult:
+    """Extract structured scene data from a normalized script using AI.
+
+    Args:
+        script: Validated NormalizedScript from Layer 1.
+        contract_path: Path to the prompt contract JSON file.
+        api_key: Anthropic API key.
+        model: Model ID to use.
+
+    Returns:
+        ExtractionResult with raw scene dicts and token usage.
+
+    Raises:
+        ExtractionError: If AI response cannot be parsed as JSON.
+    """
+    # Load prompt contract
+    with open(contract_path, "r", encoding="utf-8") as f:
+        contract = json.load(f)
+
+    # Build script text from elements
+    script_text = _elements_to_text(script)
+
+    # Render user prompt
+    user_prompt = contract["user_prompt_template"].replace("{{script_text}}", script_text)
+
+    # Call Claude API
+    client = Anthropic(api_key=api_key)
+    response = client.messages.create(
+        model=model,
+        max_tokens=contract["max_output_tokens"],
+        temperature=0,
+        system=contract["system_prompt"],
+        messages=[{"role": "user", "content": user_prompt}],
+    )
+
+    # Extract text content
+    response_text = response.content[0].text
+
+    # Parse JSON
+    try:
+        parsed = json.loads(response_text)
+    except json.JSONDecodeError as e:
+        # Try to extract JSON from response if wrapped in markdown
+        cleaned = _extract_json(response_text)
+        if cleaned:
+            try:
+                parsed = json.loads(cleaned)
+            except json.JSONDecodeError:
+                raise ExtractionError(f"AI response is not valid JSON: {e}") from e
+        else:
+            raise ExtractionError(f"AI response is not valid JSON: {e}") from e
+
+    # Extract scenes array
+    if isinstance(parsed, dict) and "scenes" in parsed:
+        scenes = parsed["scenes"]
+    elif isinstance(parsed, list):
+        scenes = parsed
+    else:
+        raise ExtractionError(f"Unexpected response structure: expected dict with 'scenes' key or list, got {type(parsed)}")
+
+    if not isinstance(scenes, list):
+        raise ExtractionError(f"'scenes' is not a list: {type(scenes)}")
+
+    token_usage = {
+        "input": response.usage.input_tokens,
+        "output": response.usage.output_tokens,
+    }
+
+    return ExtractionResult(raw_scenes=scenes, token_usage=token_usage)
+
+
+def _elements_to_text(script: NormalizedScript) -> str:
+    """Convert NormalizedScript back to readable text for the AI prompt."""
+    lines = []
+    for elem in script.elements:
+        if elem.type == "scene_heading":
+            lines.append("")
+            lines.append(elem.text)
+            lines.append("")
+        elif elem.type == "character":
+            lines.append("")
+            lines.append(f"    {elem.text}")
+        elif elem.type == "dialogue":
+            lines.append(f"  {elem.text}")
+        elif elem.type == "parenthetical":
+            lines.append(f"  {elem.text}")
+        elif elem.type == "transition":
+            lines.append("")
+            lines.append(f"                    {elem.text}")
+            lines.append("")
+        else:  # action
+            lines.append(elem.text)
+    return "\n".join(lines)
+
+
+def _extract_json(text: str) -> str | None:
+    """Try to extract JSON from text that may be wrapped in markdown code blocks."""
+    if "```json" in text:
+        start = text.index("```json") + 7
+        end = text.index("```", start)
+        return text[start:end].strip()
+    if "```" in text:
+        start = text.index("```") + 3
+        end = text.index("```", start)
+        return text[start:end].strip()
+    return None
diff --git a/src/validators/__init__.py b/src/validators/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/src/validators/scene_validator.py b/src/validators/scene_validator.py
new file mode 100644
index 0000000..8ccda17
--- /dev/null
+++ b/src/validators/scene_validator.py
@@ -0,0 +1,92 @@
+"""Scene-specific validation — post-schema semantic checks for Layer 2 output."""
+
+from dataclasses import dataclass
+from typing import Literal
+from difflib import SequenceMatcher
+from src.schemas.scene_array import SceneArray
+
+
+@dataclass
+class ValidationWarning:
+    type: Literal[
+        "duplicate_scene_number",
+        "similar_character_names",
+        "scene_count_deviation",
+        "empty_characters",
+        "unknown_values",
+    ]
+    scene_number: int | None
+    message: str
+
+
+def validate_scenes(scene_array: SceneArray, heading_count: int) -> list[ValidationWarning]:
+    """Run semantic validation checks on extracted scenes.
+
+    Args:
+        scene_array: Validated SceneArray from Layer 2.
+        heading_count: Number of scene_heading elements from Layer 1 output.
+
+    Returns:
+        List of warnings. Empty list means all checks passed.
+    """
+    warnings: list[ValidationWarning] = []
+
+    # 1. Duplicate scene numbers (already caught by SceneArray validator, but double-check)
+    seen_numbers: dict[int, int] = {}
+    for scene in scene_array.scenes:
+        if scene.scene_number in seen_numbers:
+            warnings.append(ValidationWarning(
+                type="duplicate_scene_number",
+                scene_number=scene.scene_number,
+                message=f"Scene number {scene.scene_number} appears more than once",
+            ))
+        seen_numbers[scene.scene_number] = seen_numbers.get(scene.scene_number, 0) + 1
+
+    # 2. Similar character names (possible duplicates)
+    all_characters: set[str] = set()
+    for scene in scene_array.scenes:
+        all_characters.update(scene.characters_present)
+
+    char_list = sorted(all_characters)
+    for i, name_a in enumerate(char_list):
+        for name_b in char_list[i + 1:]:
+            ratio = SequenceMatcher(None, name_a.upper(), name_b.upper()).ratio()
+            if ratio > 0.8 and name_a != name_b:
+                warnings.append(ValidationWarning(
+                    type="similar_character_names",
+                    scene_number=None,
+                    message=f"Possible duplicate characters: '{name_a}' and '{name_b}' (similarity: {ratio:.0%})",
+                ))
+
+    # 3. Scene count deviation
+    extracted_count = len(scene_array.scenes)
+    if heading_count > 0:
+        deviation = abs(extracted_count - heading_count) / heading_count
+        if deviation > 0.20:
+            warnings.append(ValidationWarning(
+                type="scene_count_deviation",
+                scene_number=None,
+                message=f"Extracted {extracted_count} scenes but Layer 1 found {heading_count} scene headings (deviation: {deviation:.0%})",
+            ))
+
+    # 4. Empty characters_present
+    for scene in scene_array.scenes:
+        if not scene.characters_present:
+            warnings.append(ValidationWarning(
+                type="empty_characters",
+                scene_number=scene.scene_number,
+                message=f"Scene {scene.scene_number} has no characters listed",
+            ))
+
+    # 5. UNKNOWN values
+    for scene in scene_array.scenes:
+        scene_dict = scene.model_dump()
+        for key, value in scene_dict.items():
+            if value == "UNKNOWN" or (isinstance(value, list) and "UNKNOWN" in value):
+                warnings.append(ValidationWarning(
+                    type="unknown_values",
+                    scene_number=scene.scene_number,
+                    message=f"Scene {scene.scene_number} field '{key}' contains UNKNOWN",
+                ))
+
+    return warnings
diff --git a/src/validators/schema_validator.py b/src/validators/schema_validator.py
new file mode 100644
index 0000000..28642b7
--- /dev/null
+++ b/src/validators/schema_validator.py
@@ -0,0 +1,48 @@
+"""Generic schema validator — validates raw dicts against Pydantic models."""
+
+from dataclasses import dataclass, field
+from typing import Literal, Optional, Any
+from pydantic import BaseModel, ValidationError
+
+
+@dataclass
+class ValidationResult:
+    status: Literal["valid", "failed", "flagged"]
+    errors: list[str] = field(default_factory=list)
+    data: Optional[Any] = None  # populated with the Pydantic model instance if valid/flagged
+
+
+def validate(raw: dict, schema_class: type[BaseModel]) -> ValidationResult:
+    """Validate a raw dict against a Pydantic model class.
+
+    Returns:
+        ValidationResult with status:
+        - "valid": all fields present, correct types, no UNKNOWN values
+        - "flagged": structurally valid but contains UNKNOWN values
+        - "failed": schema validation error (missing fields, wrong types)
+    """
+    try:
+        instance = schema_class.model_validate(raw)
+    except ValidationError as e:
+        error_messages = []
+        for err in e.errors():
+            loc = " -> ".join(str(x) for x in err["loc"])
+            error_messages.append(f"{loc}: {err['msg']}")
+        return ValidationResult(status="failed", errors=error_messages, data=None)
+
+    # Check for UNKNOWN values — structurally valid but semantically incomplete
+    if _contains_unknown(raw):
+        return ValidationResult(status="flagged", errors=["Contains UNKNOWN values"], data=instance)
+
+    return ValidationResult(status="valid", errors=[], data=instance)
+
+
+def _contains_unknown(obj: Any) -> bool:
+    """Recursively check if any value in the structure is the string 'UNKNOWN'."""
+    if isinstance(obj, str):
+        return obj == "UNKNOWN"
+    if isinstance(obj, dict):
+        return any(_contains_unknown(v) for v in obj.values())
+    if isinstance(obj, list):
+        return any(_contains_unknown(item) for item in obj)
+    return False
diff --git a/test_scripts/action_heavy.fountain b/test_scripts/action_heavy.fountain
new file mode 100644
index 0000000..6570804
--- /dev/null
+++ b/test_scripts/action_heavy.fountain
@@ -0,0 +1,238 @@
+Title: The Extraction
+Credit: written by
+Author: Test Script
+Draft date: 2026-04-06
+
+====
+
+EXT. ROOFTOP - MEXICO CITY - NIGHT
+
+A sprawling cityscape glitters below. JACK REEVES (40s, ex-military, scar across his jaw) crouches behind an air conditioning unit, binoculars pressed to his eyes.
+
+Through the binoculars: a fortified compound three blocks away. Armed guards patrol the perimeter.
+
+Jack touches his earpiece.
+
+JACK
+I count twelve on the outside. How many inside?
+
+DISPATCH (V.O.)
+Thermal says another eight. Plus the package.
+
+JACK
+Twenty hostiles. One extraction target. Lovely.
+
+He slings a tactical bag over his shoulder and moves to the roof's edge.
+
+EXT. ALLEY - MEXICO CITY - NIGHT
+
+Jack drops from a fire escape, landing silently. He presses against the wall as a patrol vehicle passes.
+
+He checks his watch: 11:47 PM.
+
+He moves through the shadows toward the compound.
+
+EXT. COMPOUND PERIMETER - NIGHT
+
+Jack reaches a drainage grate at the compound's east wall. He pulls a small cutting tool from his bag and works the bolts.
+
+A guard's flashlight sweeps nearby. Jack freezes. The light passes.
+
+He removes the grate and slides into the drain.
+
+INT. DRAINAGE TUNNEL - NIGHT
+
+Cramped, wet, dark. Jack crawls through the tunnel using a red-filtered headlamp. Rats scatter ahead of him.
+
+He reaches a junction and checks a hand-drawn map.
+
+JACK
+(whispering)
+Left fork, thirty meters, then up.
+
+He crawls left.
+
+INT. COMPOUND - BASEMENT - NIGHT
+
+Jack pushes up through a floor grate into a dimly lit basement. Stacked crates everywhere. He draws his suppressed pistol and listens.
+
+Footsteps above. Two sets, moving away.
+
+He crosses the basement to a steel door. Locked. He pulls a bypass kit from his bag and works the lock. It clicks open in twelve seconds.
+
+INT. COMPOUND - GROUND FLOOR CORRIDOR - NIGHT
+
+Jack moves down a concrete corridor, back to the wall. Security camera ahead — he pulls a small device from his pocket and aims it. The camera's red light blinks off.
+
+He rounds a corner and comes face to face with GUARD #1.
+
+A brutal, silent fight. Jack disarms the guard, puts him in a chokehold. The guard goes limp. Jack drags him into a side room.
+
+INT. COMPOUND - STAIRWELL - NIGHT
+
+Jack climbs the stairs, pistol leading. He pauses at the second floor landing — voices in Spanish behind the door.
+
+He waits. The voices move away. He opens the door slowly.
+
+INT. COMPOUND - SECOND FLOOR - NIGHT
+
+A hallway lined with doors. At the far end, GUARD #2 and GUARD #3 stand outside a reinforced door.
+
+Jack checks his options. A ventilation shaft above him. He holsters the pistol, jumps, grabs the edge, and pulls himself up.
+
+INT. VENTILATION SHAFT - NIGHT
+
+Jack crawls above the hallway. Through a vent below, he can see the two guards.
+
+He pulls two smoke canisters from his bag. Drops them through the vent.
+
+The hallway fills with white smoke. Shouts from the guards. Jack drops through the vent, lands between them.
+
+Two precise strikes. Both guards are down in four seconds.
+
+INT. COMPOUND - HOLDING ROOM - NIGHT
+
+Jack kicks through the reinforced door. Inside: a bare room with a single chair. DR. SOFIA NAVARRO (30s, bruised, defiant) is handcuffed to it.
+
+SOFIA
+About time.
+
+Jack cuts the cuffs with bolt cutters.
+
+JACK
+Can you run?
+
+SOFIA
+Can you get us out of here?
+
+An alarm blares. Red lights flood the corridor outside.
+
+JACK
+That answers that. Move.
+
+He hands her a spare earpiece and they exit into the hallway.
+
+INT. COMPOUND - SECOND FLOOR - NIGHT
+
+They run. Jack fires twice behind them as guards pour from a doorway. Both shots hit.
+
+JACK
+Stairs — go left!
+
+They hit the stairwell. Gunfire chases them, sparking off the metal railing.
+
+EXT. COMPOUND - COURTYARD - NIGHT
+
+They burst through a ground floor exit into an open courtyard. Floodlights snap on. Guards converge from two sides.
+
+Jack pulls a flashbang from his vest. Throws it. BANG — blinding white light.
+
+In the chaos, Jack grabs Sofia and they sprint for the east wall.
+
+JACK
+Over the wall. I'll boost you.
+
+He cups his hands. Sofia steps up and scrambles over. Jack follows, bullets pocking the concrete around him.
+
+EXT. STREET - MEXICO CITY - NIGHT
+
+They drop onto a narrow street. A black SUV screeches around the corner — RAMOS (30s, driver, cool under fire) behind the wheel.
+
+RAMOS
+Get in!
+
+They dive into the back. Ramos floors it.
+
+INT. SUV - MOVING - NIGHT
+
+Jack reloads. Sofia catches her breath.
+
+SOFIA
+Who sent you?
+
+JACK
+People who want you alive.
+
+SOFIA
+That narrows it down to almost nobody.
+
+Rear window SHATTERS — pursuit vehicle behind them.
+
+RAMOS
+Hang on!
+
+Ramos cuts hard left through a market street. Stalls explode as the SUV plows through. The pursuit vehicle follows.
+
+Jack leans out the window and fires at the pursuit vehicle's tires. Third shot connects — the vehicle swerves and crashes into a storefront.
+
+EXT. HIGHWAY - NIGHT
+
+The SUV merges onto a highway. City lights fall behind them.
+
+Silence in the car. Ramos checks the mirror — no pursuit.
+
+RAMOS
+Airstrip is forty minutes out.
+
+Jack nods. He looks at Sofia.
+
+JACK
+You're going to have to tell them everything. The lab, the formula, all of it.
+
+SOFIA
+I know.
+
+JACK
+They won't be happy about what you found.
+
+SOFIA
+That's why they tried to kill me.
+
+EXT. DESERT AIRSTRIP - NIGHT
+
+A small prop plane waits on a dirt runway, engines running. The SUV skids to a stop beside it.
+
+Jack, Sofia, and Ramos exit. PILOT waves them toward the plane.
+
+JACK
+(to Ramos)
+Burn the car.
+
+RAMOS
+Already planned on it.
+
+Jack and Sofia board the plane.
+
+INT. PROP PLANE - NIGHT
+
+They settle into seats. The plane taxis and lifts off. Through the window, they watch the SUV ignite below — Ramos standing clear, lighter in hand.
+
+SOFIA
+Where are we going?
+
+JACK
+Somewhere they can't reach you.
+
+SOFIA
+Does that place exist?
+
+Jack doesn't answer. The plane climbs into darkness.
+
+EXT. COMPOUND - NIGHT
+
+The compound is in chaos. Guards shout, lights sweep the surrounding blocks. COLONEL VEGA (50s, cold, scarred) stands in the holding room, staring at the empty chair and cut handcuffs.
+
+An AIDE approaches.
+
+AIDE
+They escaped east. Vehicle lost them on the highway.
+
+VEGA
+Find the pilot's name. Find the airstrip. Find the plane.
+
+He picks up the cut handcuffs.
+
+VEGA
+And find whoever sent the soldier.
+
+FADE OUT.
diff --git a/test_scripts/dialogue_heavy.fountain b/test_scripts/dialogue_heavy.fountain
new file mode 100644
index 0000000..6753b56
--- /dev/null
+++ b/test_scripts/dialogue_heavy.fountain
@@ -0,0 +1,267 @@
+Title: The Weight of Words
+Credit: written by
+Author: Test Script
+Draft date: 2026-04-06
+
+====
+
+INT. THERAPIST'S OFFICE - DAY
+
+A small, warm room. Bookshelves line the walls. DR. ELENA VOSS (50s, calm, measured) sits across from MARCUS CHEN (30s, restless, avoiding eye contact).
+
+DR. VOSS
+How have you been sleeping?
+
+MARCUS
+(shifting in his seat)
+Fine. Same as always.
+
+DR. VOSS
+Marcus, we've talked about this. "Fine" isn't —
+
+MARCUS
+It's not a feeling, I know. You've said that.
+
+A long beat. Elena writes something in her notebook.
+
+DR. VOSS
+Your sister called me.
+
+MARCUS
+She had no right to do that.
+
+DR. VOSS
+She's worried about you. She said you haven't left the apartment in two weeks.
+
+MARCUS
+That's an exaggeration.
+
+DR. VOSS
+Is it?
+
+Marcus finally looks at her. His eyes are red-rimmed.
+
+INT. MARCUS'S APARTMENT - NIGHT
+
+A cluttered studio apartment. Takeout containers on every surface. Marcus sits on the floor against the wall, phone in hand. He stares at a text from LILY CHEN: "Please call me back."
+
+He sets the phone face-down.
+
+INT. COFFEE SHOP - MORNING
+
+Bright, busy. LILY CHEN (late 20s, sharp, put-together but tired) waits at a corner table. Marcus enters, looking like he hasn't slept.
+
+LILY
+You look terrible.
+
+MARCUS
+Thanks. Love you too.
+
+He sits. An awkward silence.
+
+LILY
+Mom's been asking about you.
+
+MARCUS
+Tell her I'm fine.
+
+LILY
+I'm not going to lie to her, Marcus.
+
+MARCUS
+Then don't tell her anything.
+
+LILY
+That's the same thing and you know it.
+
+MARCUS
+(quiet)
+How is she?
+
+LILY
+She's scared. Dad's getting worse and you won't even visit.
+
+Marcus stares at his coffee.
+
+INT. HOSPITAL ROOM - AFTERNOON
+
+HENRY CHEN (60s) lies in a hospital bed, frail but alert. Marcus stands in the doorway, unable to step inside.
+
+HENRY
+Are you going to stand there all day or come in?
+
+Marcus enters slowly. He sits in the chair beside the bed.
+
+HENRY
+Your sister tells me you've been hiding.
+
+MARCUS
+I haven't been hiding.
+
+HENRY
+(smiling weakly)
+You're a terrible liar. Always were.
+
+MARCUS
+Dad —
+
+HENRY
+I'm dying, Marcus. Not dead yet. You can still talk to me.
+
+Marcus's composure cracks. He puts his head in his hands.
+
+INT. THERAPIST'S OFFICE - DAY
+
+Back with Dr. Voss. Marcus is more open now, leaning forward.
+
+MARCUS
+He just said it. Like it was nothing. "I'm dying."
+
+DR. VOSS
+How did that make you feel?
+
+MARCUS
+Like I've been wasting time. Like every day I spent not going to see him was —
+
+He stops.
+
+DR. VOSS
+Was what?
+
+MARCUS
+Selfish. It was selfish.
+
+DR. VOSS
+You were protecting yourself. That's not the same as selfishness.
+
+MARCUS
+Isn't it?
+
+INT. MARCUS'S APARTMENT - NIGHT
+
+Marcus packs a small bag. He picks up a framed photo from the shelf — a young Marcus and Henry at a baseball game, both laughing.
+
+He puts the photo in the bag.
+
+INT. HOSPITAL ROOM - NIGHT
+
+Marcus enters with the bag. Henry is asleep. NURSE PATRICIA (40s, gentle) is checking his IV.
+
+NURSE PATRICIA
+He's been asking for you.
+
+MARCUS
+I'm here now.
+
+He sits in the chair and takes his father's hand. Henry stirs.
+
+HENRY
+(half asleep)
+Marcus?
+
+MARCUS
+I'm here, Dad. I'm not going anywhere.
+
+Henry squeezes his hand weakly and drifts back to sleep. Marcus settles in, pulling his jacket around himself like a blanket.
+
+INT. HOSPITAL CAFETERIA - MORNING
+
+Marcus and Lily sit across from each other, both holding bad coffee.
+
+LILY
+You stayed all night?
+
+MARCUS
+Yeah.
+
+LILY
+(softening)
+Thank you.
+
+MARCUS
+Don't thank me. I should have been here weeks ago.
+
+LILY
+You're here now. That's what matters.
+
+A beat.
+
+MARCUS
+I'm going to take a leave from work. Stay until... however long.
+
+LILY
+(eyes welling up)
+Okay.
+
+MARCUS
+I called Dr. Voss. She's going to do phone sessions.
+
+LILY
+That's good. That's really good, Marcus.
+
+They sit in silence, something unspoken settling between them.
+
+INT. HOSPITAL ROOM - AFTERNOON
+
+Marcus reads aloud from a book. Henry listens, eyes closed but smiling.
+
+HENRY
+You always did have a good voice for reading.
+
+MARCUS
+Mom used to say I should have been an actor.
+
+HENRY
+Your mother was right about most things.
+
+MARCUS
+She was right about you too.
+
+HENRY
+(opening his eyes)
+What did she say?
+
+MARCUS
+That you were the most stubborn man alive.
+
+HENRY
+(laughing, then coughing)
+Was. Was the most stubborn.
+
+They share a look — sad, warm, real.
+
+INT. HOSPITAL HALLWAY - EVENING
+
+Marcus leans against the wall outside Henry's room, on the phone.
+
+MARCUS
+(into phone)
+I know I missed the deadline. I understand... No, I'm not asking for sympathy. I'm asking for two weeks... Thank you. I appreciate it.
+
+He hangs up. Takes a breath. Goes back inside.
+
+INT. THERAPIST'S OFFICE - DAY (PHONE SESSION)
+
+Marcus sits in the hospital cafeteria, phone to his ear.
+
+DR. VOSS (V.O.)
+How does it feel to be there?
+
+MARCUS
+Terrifying. And also... right. Like I'm finally where I'm supposed to be.
+
+DR. VOSS (V.O.)
+That's a significant shift, Marcus.
+
+MARCUS
+I know. I just wish it hadn't taken this long.
+
+DR. VOSS (V.O.)
+The important thing isn't when you arrived. It's that you stayed.
+
+Marcus looks through the cafeteria window toward the hallway leading to his father's room.
+
+MARCUS
+Yeah. I'm staying.
+
+FADE OUT.
diff --git a/test_scripts/expected/action_heavy_scenes.json b/test_scripts/expected/action_heavy_scenes.json
new file mode 100644
index 0000000..160bdeb
--- /dev/null
+++ b/test_scripts/expected/action_heavy_scenes.json
@@ -0,0 +1,7 @@
+{
+  "expected_scene_count": 18,
+  "expected_characters": ["JACK", "SOFIA", "RAMOS", "VEGA"],
+  "expected_locations": ["ROOFTOP", "ALLEY", "COMPOUND", "DRAINAGE TUNNEL", "STAIRWELL", "SUV", "HIGHWAY", "AIRSTRIP", "PROP PLANE"],
+  "must_not_contain_characters": [],
+  "must_not_contain_locations": []
+}
diff --git a/test_scripts/expected/dialogue_heavy_scenes.json b/test_scripts/expected/dialogue_heavy_scenes.json
new file mode 100644
index 0000000..b9eeb80
--- /dev/null
+++ b/test_scripts/expected/dialogue_heavy_scenes.json
@@ -0,0 +1,7 @@
+{
+  "expected_scene_count": 13,
+  "expected_characters": ["MARCUS", "DR. VOSS", "LILY", "HENRY", "NURSE PATRICIA"],
+  "expected_locations": ["THERAPIST'S OFFICE", "APARTMENT", "COFFEE SHOP", "HOSPITAL ROOM", "HOSPITAL CAFETERIA", "HOSPITAL HALLWAY"],
+  "must_not_contain_characters": [],
+  "must_not_contain_locations": []
+}
diff --git a/test_scripts/expected/nonstandard_scenes.json b/test_scripts/expected/nonstandard_scenes.json
new file mode 100644
index 0000000..5131f6a
--- /dev/null
+++ b/test_scripts/expected/nonstandard_scenes.json
@@ -0,0 +1,7 @@
+{
+  "expected_scene_count": 11,
+  "expected_characters": ["NADIA", "DEREK", "TOMMY", "MRS. PETROV", "MOTHER"],
+  "expected_locations": ["APARTMENT", "GROCERY STORE", "PARKING LOT", "BUS STOP", "BUS", "GAS STATION", "FAMILY HOUSE", "MOTEL ROOM"],
+  "must_not_contain_characters": [],
+  "must_not_contain_locations": []
+}
diff --git a/test_scripts/nonstandard.fountain b/test_scripts/nonstandard.fountain
new file mode 100644
index 0000000..2494803
--- /dev/null
+++ b/test_scripts/nonstandard.fountain
@@ -0,0 +1,186 @@
+Title: Loose Threads
+Author: Test Script
+
+====
+
+apartment - morning
+
+NADIA wakes up on the couch. Still in yesterday's clothes. Her phone buzzes on the coffee table — 14 missed calls.
+
+She ignores it and walks to the kitchen.
+
+NADIA
+(to herself)
+Not today.
+
+She opens the fridge. Empty except for a bottle of hot sauce.
+
+INT GROCERY STORE DAY
+
+Nadia pushes a cart through fluorescent aisles. She looks half-asleep. Her phone rings again. She silences it.
+
+at the checkout, TOMMY (20s, works here, knows everybody) scans her items.
+
+TOMMY
+You look rough.
+
+NADIA
+Didn't sleep.
+
+TOMMY
+Your brother was in here earlier looking for you.
+
+Nadia freezes.
+
+NADIA
+What did you tell him?
+
+TOMMY
+Nothing. I don't get involved.
+
+EXT. PARKING LOT - DAY
+
+Nadia loads groceries into her car. A beat-up sedan is parked three spaces away. DEREK (30s, her brother, intense) leans against it.
+
+DEREK
+We need to talk.
+
+NADIA
+No we don't.
+
+DEREK
+It's about the house.
+
+NADIA
+I said no.
+
+She gets in her car and drives away. Derek watches her go.
+
+nadia's apartment - night
+
+Nadia sits at her kitchen table eating cereal. A KNOCK at the door. She doesn't move. Another KNOCK.
+
+MRS. PETROV (O.S.)
+Nadia, I know you're in there. I can hear the television.
+
+Nadia mutes the TV and stays quiet.
+
+MRS. PETROV (O.S.)
+Your rent is late again, dear.
+
+NADIA
+(calling out)
+I'll have it Friday!
+
+MRS. PETROV (O.S.)
+That's what you said last Friday.
+
+Silence. Footsteps recede.
+
+EXT. BUS STOP - EARLY MORNING
+
+Nadia waits at a bus stop, duffel bag at her feet. The sun is barely up. Nobody else around.
+
+Her phone rings. She looks at the screen — "DEREK." She answers.
+
+NADIA
+What.
+
+DEREK (V.O.)
+The lawyer says we have to both sign or we lose everything.
+
+NADIA
+Maybe we should lose everything.
+
+DEREK (V.O.)
+You don't mean that.
+
+NADIA
+Don't tell me what I mean.
+
+She hangs up. The bus arrives. She boards.
+
+INT - BUS - MORNING
+
+Nadia sits in the back. PASSENGER (elderly woman) across the aisle knits something blue.
+
+PASSENGER
+Going far?
+
+NADIA
+Hopefully.
+
+The bus pulls away.
+
+EXT GAS STATION - AFTERNOON
+
+The bus has stopped. Passengers mill around. Nadia buys a sandwich from a vending machine and sits on the curb.
+
+Her phone has 3 new texts from Derek. She reads them:
+
+"Please just call me"
+"This isn't about us this is about mom's house"
+"Nadia"
+
+She types: "I need a few days." Sends it.
+
+.FLASHBACK - INT. FAMILY HOUSE - KITCHEN - YEARS AGO
+
+Young NADIA (12) and young DEREK (16) sit at the kitchen table. Their MOTHER sets plates in front of them.
+
+MOTHER
+Eat your dinner before it gets cold.
+
+YOUNG DEREK
+Mom, can I go to Tyler's after?
+
+MOTHER
+After you clean your room.
+
+YOUNG NADIA
+His room is disgusting.
+
+YOUNG DEREK
+Shut up.
+
+MOTHER
+Both of you. Eat.
+
+A normal evening. Nothing special. Everything special.
+
+INT. MOTEL ROOM - NIGHT
+
+Cheap. Clean enough. Nadia drops her duffel on the bed and lies down without undressing.
+
+She stares at the ceiling for a long time.
+
+Then she calls Derek.
+
+DEREK (V.O.)
+Nadia?
+
+NADIA
+Tell the lawyer I'll sign.
+
+DEREK (V.O.)
+Really?
+
+NADIA
+But I want to go through the house first. Before they clear it.
+
+DEREK (V.O.)
+...okay. Yeah. We can do that.
+
+NADIA
+I'll be back Thursday.
+
+DEREK (V.O.)
+Okay. Drive safe. Or... bus safe. Whatever.
+
+NADIA
+(almost smiling)
+Goodnight, Derek.
+
+She hangs up. Closes her eyes.
+
+> FADE OUT.