Common use of Initial Negotiation Clause in Contracts

Initial Negotiation. During the period January 1, 1998 through March 31, 1998 (or earlier with the approval of both parties) Seller and Buyer shall conduct negotiations in good faith for the purpose of reaching agreement by no later than March 31, 1998 on the following matters: (a) A percentage of the Payable Copper price determined pursuant to Article 8, the applicable price range for such percentage and the associated (price participation) formula for smelting and refining charges for the Payable Copper price which is outside of such designated price range (or alternatively two or more different percentages of such Payable Copper price with a corresponding range of prices which are applicable to each such percentage) for each cargo of Concentrate sold hereunder during the period commencing with the first delivery of Concentrates hereunder and continuing through December 31, 2003, which shall constitute a combined smelting and refining charge for Part A Tonnage for such period; and (b) Whether or not gold and silver refining charges will be applicable to Part A tonnage, and the amount (if any) of such charges applicable for the same period specified in (a) above, all based on the generally prevailing market for price sharing type contracts.