Common use of Settlement Gains/Losses Clause in Contracts

Settlement Gains/Losses. The parties acknowledge that fluctuations may occur between the currency conversion rates used at the time of authorization and those used at the time of settlement of Foreign Transactions by the Card Associations. Such fluctuations will affect the Acquirer Settlement Amount and therefore the amount of Gross FX Margin that may be earned with respect to particular DCC Transactions, which may be higher or lower than the amount anticipated at the time of the Transaction, thus creating either Settlement Gains or Settlement Losses. Because such Settlement Gains and Settlement Losses are a component of the Gross FX Margin, such Settlement Gains and Settlement Losses are typically shared in the same proportion that the parties share the Net FX Margin. However, notwithstanding the previous sentence, for the period of one (1) year after Implementation all Settlement Gains and Losses shall be allocated solely to Planet Payment and the Gross FX Margin shall be adjusted accordingly. Thereafter the parties shall review the position and agree whether Acquirer will accept a share of Settlement Gains and Losses, or whether the provisions of the previous sentence shall remain in force for a further period. In the absence of any agreement to the contrary Planet Payment shall continue to be allocated all Settlement Gains and Losses thereafter.