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An option agreement is made between a writer and a producer and grants the producer an exclusive option to buy the rights in the writer's work. A ?shopping? agreement allows the producer to represent the work but gives the producer fewer rights than an option and typically lasts for a shorter period.
A screenplay option is an agreement between you and another party in which you grant them sole rights to your script during the period dictated in the agreement; this usually ranges from six months to a year (although some option agreements can be for as long as eighteen months or the time can be extended).
A Script Acquisition Agreement is entered into between a producer and an author, when a potential film producer such as a movie studio, a production company or an individual, wishes to purchase exclusive rights of a source material such as a book, play or a screenplay.
An ?Option Agreement? usually comes in the form of two agreements: (1) the purchase of the right to buy the screenplay (the ?option?), and (2) the agreement for the sale of the screenplay that comes into effect upon the exercise of the option (the ?purchase?).
The option price is the initial sum of money offered to acquire the rights and keep the screenplay off the market. This is traditionally 10% of the purchase price. You keep the option fee regardless of whether the interested party ultimately acquires the screenplay.