By: Sarah Chaisson-Warner
Shore Scripts is offering an exciting new opportunity through our Feature Contest – a Guaranteed Option Prize! Showdown Productions will select and sign a Paid Option Agreement with one of Shore’s 2024 feature writers, working with the writer to develop their project before taking it out to market.
Showdown Productions is a Los Angeles-based Production Company founded by Bo Youngblood and John Ierardi. Both Bo and John have independently produced multiple feature films, branded content, music videos, documentaries and commercials. They met while working on set, and decided to join creative forces to produce material that not only has a strong artistic vision but also makes strong commentary on social and diverse issues.
While many writers’ ultimate goal is to sell their script and see their script on the screen, the paths for selling a script can sometimes be confusing. Read below for a quick primer on how option agreements, shopping agreements, and purchase agreements work.
What is an Option Agreement?
An option agreement is a contract that gives a producer the exclusive ability to purchase the rights to a story, script, or idea for a specified period. The producer doesn’t own the rights to the story, but the option agreement essentially takes your script off the market and allows the producer time to develop the project, raise money for it, and attach talent.
The terms of an option agreement can vary depending on a variety of factors. Option agreements usually include payment for the option period and the purchase price if the producer decides to exercise the option. Most option agreements are about 1 year, with the opportunity to extend the option agreement if the producer needs more time.
Option agreements are typically about 10% of the anticipated purchase price, but some option agreements can be more or less. The purchase price is usually a percentage of the film’s budget. The writer keeps the option agreement fee regardless of if the project is purchased or not.
Shopping and Purchase Agreements
Option agreements aren’t the only types of agreements a writer can make in attempting to sell their script – some writers enter into shopping agreements. A shopping agreement isn’t the same as an option agreement. A shopping agreement allows a producer to “shop” the script to potential buyers, like studios, and create interest from buyers. The producer doesn’t have exclusive rights to the project during the shopping agreement period.
Shopping agreements typically include a commission for the producer if they sell the project, and typically don’t have a finite end date. Shopping agreements often continue until the script is sold or one of the parties no longer wants to continue with the contract.
Also different from an option agreement and a shopping agreement is a screenplay purchase agreement. A purchase agreement gives the buyer ownership of the intellectual property and typically involves a flat fee, bonus, and contingent compensation.
The Dollar Baby Program
Believe it or not, some option agreements are for as little as $1. While the $1 option agreement is a bit controversial as new and emerging writers consider the pros and cons, writer Stephen King has used the $1 option agreement to support emerging filmmakers.
King created the Dollar Baby program in 1977 and it operated until 2023, when the program’s manager finally retired. The Dollar Baby program gave permission to students and aspiring filmmakers to adapt one of his short stories for just $1. While King retained the rights to his work, the program helped support the careers of emerging filmmakers.
Between 1977 and 1996, nearly a dozen films were made from King’s program. While the films made through the Dollar Baby program were meant largely for student use and film festivals, the first Dollar Baby film released was in 2002. Paranoid was based off a 100-line poem written by King and had a limited internet release, with King’s permission. It then was released on commercial DVD. Near the end of the program in 2021, Barker Street Cinema hosted a Dollar Baby Film Festival, and did virtual screenings of 25 films that were created through the program.
How the Showdown Guaranteed Option Prize Works
Now that we’ve covered all of the ways you might go about selling your script and the various types of agreements that help to facilitate that, let’s talk about our Feature Contest and the Guaranteed Option prize!
Working with Showdown Productions will be a career-changing experience for an up-and-coming writer! The chosen writer will gain experience developing their work with a top production company and the opportunity to build and strengthen their network, while giving their script the best opportunity of being taken through into production.
Showdown will be presented with a short list of top screenplays submitted in the Feature Contest. From there, John and Bo will choose the winner and work with the writer to prepare to take the script out to the industry.
Learn More
Interested in learning more about the Guaranteed Option Prize in our Feature Contest? Click here!
