Currency Exchange Rates
Commercial Contract
In the following exemplars, the parties agree to certain exchange rates for purposes of converting payment made in one currency into contracted pricing set in another currency:
Exemplar C20-1
Where Supplier pricing is in currency other than U.S. Dollars, prices will be converted to U.S. Dollar equivalents on a quarterly basis, as set forth in this subsection. For the purpose of determining pricing for subsequent quarters, the conversion to U.S. Dollars will be made using the U.S. Dollar Currency Exchange Rate specified by the Citibank 1200 Noon Rate on the third day before the end of the second fiscal month of the current quarter. Intra-quarter exchange rate adjustments will not be permitted.
Exemplar C20-2
Adjustments to pricing due to exchange rate fluctuations will be reconciled quarterly. By way of example only, the fees may be increased if the market price of fuels, Materials, equipment, labor and other production costs, increase beyond normal variations in pricing or currency exchange rates. The Fees List will be based on the exchange rate(s) for converting the purchase price for Inventory denominated in the Parts Purchase Currency(ies) into the Functional Currency. The fees will be adjusted, on a monthly basis based on changes in the Exchange Rate(s) as reported on the last business day of each month, for the following month to the extent that such Exchange Rates change more than +/- 0.75% from the prior month (the “Currency Window”). “Exchange Rate(s)” is defined as the closing currency exchange rate(s) as reported on Reuters' page FIX on the last business day of the current month prior to the following month. “Functional Currency” means the currency in which all payments are to be made pursuant to this Agreement. “Parts Purchase Currency(ies)” means U.S. Dollars, Japanese Yen and/or Euros to the extent such currencies are different from the Functional Currency and are used to purchase Inventory needed for the performance of the Work forecasted to be completed during the applicable month.
In the following exemplar, the pricing is fixed and dictates the exchange rate:
Exemplar C20-3
Contractor will invoice in US Dollars based upon the exchange rate for the British Pound at the time of invoicing that yields the pricing shown above. European subsidiaries will invoice in US Dollars based upon the exchange rate for the Euro at the time of invoicing that yields the pricing shown above. All payment by the Company to Contractor will be in US Dollars.