Common use of Exchange Rate Variation Clause in Contracts

Exchange Rate Variation. 7.1. Where, as agreed in the Agreement, the cost of goods is based on the foreign currency price and calculated on an exchange rate in relation to the pound sterling (GBP), prices may be varied by negotiation between the Contractor and Authority using the base rate, exchange rates and formula as specified below. 7.2. The Price is calculated by reference to the London market rate of exchange of the Euro (EUR) to the GBP (the Base Exchange Rate). If the London market rate of Exchange, on the date on which the Purchase Order was submitted to the Contractor or at six monthly intervals, is greater or less than the Base Exchange Rate by at least [Seven] per centum, the Price shall be varied in direct proportion to the increase or decrease and be payable accordingly. 7.3. The base rate for these exchange rates will be the Financial Times average closing prices on the date the Contractor submitted their tender to the Authority (i.e. 25/08/2010). The Schedule 2 pricing is calculated on a base rate of 1.2172 to £1.00.

Exchange Rate Variation. 7.1. Where, as agreed in the Agreement, the cost of goods is based on the foreign currency price and calculated on an exchange rate in relation to the pound sterling (GBP), prices may be varied by negotiation between the Contractor and Authority using the base rate, exchange rates and formula as specified below. 7.2. The Price is calculated by reference to the London market rate of exchange of the Euro US Dollar (EURUSD) to the GBP (the Base Exchange Rate). If the London market rate of Exchange, on the date on which the Purchase Order was submitted to the Contractor or at six monthly intervals, is greater than $1.80 or less lower than the Base Exchange Rate by at least [Seven] per centum$1.50, the Price shall be varied in direct proportion to the increase or decrease and be payable accordingly. 7.3. The base rate for these exchange rates will be the Financial Times average closing prices on the date the Contractor submitted their tender to the Authority (i.e. 25/08/2010). The Schedule 2 pricing is calculated on a base rate of 1.2172 $1.65 to £1.00.