Common use of Index for Foreign Exchange Rate Changes Clause in Contracts

Index for Foreign Exchange Rate Changes. The changes in the foreign exchange rate between the US dollar and the RMB shall be measured by comparing the exchange rate published by the Wall Street Journal on the dates of the first and last POs during the first year of the Agreement and by repeating the process of comparing the exchange rates on the dates of the first and last POs of the second year and each subsequent years thereafter if the term of the Agreement is extended if the need to do so for a price increase or decrease arises.