Common use of Option Work Clause in Contracts

Option Work. 10.1 CTDOT may, at its sole discretion, exercise any Options for additional rail cars or services as specified in the Scope of Work. 10.2 CTDOT shall have the right to exercise any option for additional rail cars up until the date that eighty percent (80%) of the rail cars currently under production (whether Base rail cars or Option rail cars, as applicable) are delivered to CTDOT. Contractor shall notify CTDOT in writing six (6) months prior to the expected date for such 80% completion. 10.3 CTDOT shall have the right to exercise the Post‐Warranty Service and Support option up until twelve (12) months prior to the expiration of the warranty period of the first Conditionally Accepted rail car. Payment for the Post‐Warranty Service and Support option, as set forth in the Payment Summary, shall be invoiced and paid in monthly installments. 10.4 The unit price for the additional rail cars purchased at CTDOT’s option, if any, as set forth in the Payment Summary, shall be adjusted if exercised after twelve (12) months from issuance of NTP. No price adjustment shall be allowed if the Option is exercised within the first twelve (12) months following issuance of NTP for the base order. (a) The price adjustment shall be based on the U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Index as published in the monthly periodical "PPI Detailed Report" for NAICS 33651 Railroad Rolling Stock Manufacturing. The option prices will be adjusted according to the following equation: (Proposal Option Price) x (PPI at time of NTP for Option) = Adjusted Option Price (PPI at time of NTP for Base Order) The Producer Price Index (33651) used for the Price Adjustment calculation shall be in its originally published, unadjusted form.

Option Work. 10.1 CTDOT may, at its sole discretion, exercise any Options for additional rail cars or services as specified in the Scope of Work. 10.2 CTDOT shall have the right to exercise any option for additional rail cars up until the date that eighty percent (80%) of the rail cars currently under production (whether Base rail cars or Option rail cars, as applicable) are delivered to CTDOT. Contractor shall notify CTDOT in writing six (6) months prior to the expected date for such 80% completion. 10.3 CTDOT shall have the right to exercise the Post‐Warranty Post-Warranty Service and Support option up until twelve (12) months prior to the expiration of the warranty period Warranty Period of the first Conditionally Accepted rail car. Payment for the Post‐Warranty Post-Warranty Service and Support option, as set forth in the Payment Summary, shall be invoiced and paid in monthly installments. 10.4 The unit price for the additional rail cars purchased at CTDOT’s option, if any, as set forth in the Payment Summary, shall be adjusted if exercised after twelve (12) months from issuance of NTP. No price adjustment shall be allowed if the Option is exercised within the first twelve (12) months following issuance of NTP for the base order. (a) The price adjustment shall be based on the U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Index as published in the monthly periodical "PPI Detailed Report" for NAICS 33651 Railroad Rolling Stock Manufacturing. The option prices will be adjusted according to the following equation: (Proposal Option Price) x (PPI at time of NTP for Option) = Adjusted Option Price (PPI at time of NTP for Base Order) The Producer Price Index (33651) used for the Price Adjustment calculation shall be in its originally published, unadjusted form.