Option Letter Clause Samples
An Option Letter clause defines the process by which one party can exercise a contractual option, typically by providing written notice to the other party. In practice, this clause outlines the required format, timing, and method for delivering the option notice, such as specifying that the notice must be in writing and sent to a designated address within a certain timeframe. The core function of this clause is to ensure that the exercise of contractual options is clear, formalized, and legally effective, thereby reducing the risk of disputes over whether an option has been properly exercised.
Option Letter. (a) Subject to Section 11.1 and Section 11.3(b), the Reinsurer, promptly following receipt of the requisite approvals of applicable Governmental Entities, shall transmit by mail to every Required Party an option letter (the “Option Letter”), together with a Notice and Certificate of Assumption, including, where required as reasonably determined by the Reinsurer, a form for rejection or acceptance, as permitted by applicable Law, and a self-addressed return envelope (the “Notice and Certificate of Assumption”). Option Letters and Notices and Certificates of Assumption shall not be sent with respect to a Reinsured Policy unless and until all requisite approvals of applicable Governmental Entities have been received with respect to such Reinsured Policy, including approval of the requisite form and rate filings.
(b) Subject to the receipt of the requisite regulatory approvals and applicable Law, the Reinsurer may, at its option, in lieu of transmission of an Option Letter to a Required Party by mail, effect such transmission by electronic mail to an appropriately confirmed electronic mail address for the Required Party, or in the alternative, by any other method allowed under applicable Law.
(c) The Reinsurer and the Ceding Company shall in good faith agree to modify the procedures set forth in this Section 11.3 on a state-by-state basis to the extent required to conform to any procedures for novation and assumption of Reinsured Policies imposed or required by the applicable Governmental Entity or as reasonably requested by the Reinsurer.
(d) Notwithstanding anything in this Agreement to the contrary, with respect to the classes of Required Parties described on Schedule 11.3(d) or as reasonably determined by the Reinsurer, the Option Letter, to the extent permitted by applicable Law, may be accompanied by a form for rejection, and a self-addressed return envelope, and the Reinsurer shall not be required to seek affirmative consent from such Required Parties, unless required by applicable Law as reasonably determined by the Reinsurer.
(e) The Ceding Company shall cooperate in any actions taken by the Reinsurer in connection with this Article XI.
Option Letter a. The State may increase/decrease the quantity of goods/services described in Exhibit A at the same unit prices (rates) originally established in the contract. The State may exercise the option by written notice to the Local Agency in a form substantially equivalent to Exhibit C.
b. As a result of increasing/decreasing the locations, the State may also unilaterally increase/decrease the maximum amount payable under this contract based upon the unit prices (rates) originally established in the contract and the schedule of services required, as set by the terms of this contract. The State may exercise the option by providing a fully executed option to the Local Agency, in a form substantially equivalent to Exhibit C, immediately upon signature of the State Controller or an authorized delegate. The Option Letter shall not be deemed valid until signed by the State Controller or an authorized delegate. Any such rate change will go into effect on the first day of the first month following the option letter execution date.
Option Letter. RiconPharma LLC shall have executed and tendered to Purchaser the Option Letter.
Option Letter. This is an indefinite quantity contract for the Work specified herein. The parties have estimated the quantity and total cost of the Work, but such estimates are estimates only.
a) Funds are available and encumbered in the amount of the estimate. The Owner shall not perform Work, which creates a financial obligation of the State exceeding the amount of available funds specified herein. [Additionally, the Owner shall notify the State’s representative when State commitments, paid and unpaid, are within 10% of the amount of funds available]. The State is not liable beyond the amount of funds specified as available in this paragraph.
b) The State may allocate more or less funds available on this contract using an Option Letter substantially equivalent to Exhibit C and bearing the approval of the State Controller or designee. The Option Letter shall not be deemed valid until it shall have been approved by the State Controller or designee.
Option Letter i. Option Letter to modify existing State Contract as listed in the executed Contract as follows:
a) The State, at its discretion, shall have the option to revise the budget over 15% to correct typographical errors; add or remove lines within the budget; increase gross or annual salary of positions listed under Personnel; revisions to personnel; changes between lines of the budget that exceed 15%; and changes to negotiated indirect rates through an Option Letter. In order to exercise this option, the State shall obtain an email agreeing to the changes and follow up with written notice to Contractor in a form substantially equivalent to Exhibit E, and any new rates table or exhibit shall be effective as of the effective date of that notice unless the notice provides for a different date.
b) The Option Letter shall not be allowed for changes in the Statement of Work.