Common use of Fixed Pricing Clause in Contracts

Fixed Pricing. The fixed price is the sum of a metal component fixed price and a conversion component. a/Metal component fixed price. The metal component fixed price is the LME's London Clearing House (LCH) aluminum high-grade futures contracts closing price for the agreed future delivery period, plus the applicable Midwest market delivered premium at the time of order acceptance. The notification day and placement period are as defined below in Article 5, Section 5.5-d. b/Actual metal component price. The metal component price payable by ANC is equal to the metal component fixed price. c/Conversion component. For each product (body-stock, end-stock, tab-stock), and specification, the conversion component of the fixed price shall be the lower of (I) ALCOA's published conversion price at the time of shipment, or (II) the competitive market conversion price. The competitive market conversion price shall be the lower of (I) for delivery within the continental United States, ALCOA's lowest weighted average conversion price charged to another customer of ALCOA for ALUMINUM PURCHASE AGREEMENT (ANC-ALCOA) 12/27 STRICTLY PRIVATE delivery within continental United States, for the same specification during the same period, and for delivery in Mexico or Canada, ALCOA's lowest weighted average conversion price charged to another customer of ALCOA for delivery respectively into Mexico or Canada, for the same specification during the same period or: (II) the lowest weighted average conversion price for the same specification during the same period, available to ANC from KAISER and/or ALCAN, if those competitors are committed to, or are offering to supply, individually at least 15% of ANC's North American requirements for the relevant type of can stock. d/Procedure for establishing a fixed price. ANC shall advise ALCOA in writing of the volume and delivery period for which the fixed price will be established. ALCOA will confirm in writing to ANC the details of the intended metal coverage program, provided that the quantity to be fixed on any one day shall not exceed 40 million pounds, in aggregate for all pricing mechanisms, unless specifically agreed upon by the parties. The notification day ends at 5:00pm East Standard Time on the day ANC instructs ALCOA to fix the price of the metal component for the requested delivery period. In the event that ANC places more than forty (40) million pounds of volume on any one day, in order to establish the metal component price, ALCOA will use the average of the LME cash settlement prices for the next "X" LME working days (the placement period), plus the contangoes or backwardations applicable to the future delivery periods, where "X" is the total volume placed divided by forty (40) million pounds, and rounded up to the whole number of days. ANC will immediately instruct ALCOA whether or not to implement the program. After completion, ALCOA will notify ANC as to the actual metal component fixed price.

Fixed Pricing. The fixed price is the sum of a metal component fixed price and a conversion component. a/. a/ Metal component fixed price. The metal component fixed price is the LME's London Clearing House (LCH) aluminum high-grade futures contracts closing price for the agreed future delivery period, plus the applicable Midwest market delivered premium at the time of order acceptance. The notification day and placement period are as defined below in Article 5, Section 5.5-d. b/d. b/ Actual metal component price. The metal component price payable by ANC is equal to the metal component fixed price. c/. c/ Conversion component. For each product (body-stock, end-stock, tab-stock), and specification, the conversion component of the fixed price shall be the lower of (I) ALCOA's published conversion price at the time of shipment, or (II) the competitive market conversion price. The competitive market conversion price shall be the lower of (I) for delivery within the continental United States, ALCOA's lowest weighted average conversion price charged to another customer of ALCOA for ALUMINUM PURCHASE AGREEMENT (ANC-ALCOA) 12/27 STRICTLY PRIVATE delivery within continental United States, for the same specification during the same period, and for delivery in Mexico or Canada, ALCOA's lowest weighted average conversion price charged to another customer of ALCOA for delivery respectively into Mexico or Canada, for the same specification during the same period or: (II) the lowest weighted average conversion price for the same specification during the same period, available to ANC from KAISER and/or ALCAN, if those competitors are committed to, or are offering to supply, individually at least 15% of ANC's North American requirements for the relevant type of can stock. d/. d/ Procedure for establishing a fixed price. ANC shall advise ALCOA in writing of the volume and delivery period for which the fixed price will be established. ALCOA will confirm in writing to ANC the details of the intended metal coverage program, provided that the quantity to be fixed on any one day shall not exceed 40 million pounds, in aggregate for all pricing mechanisms, unless specifically ALUMINUM PURCHASE AGREEMENT (ANC-ALCOA) 12/27 STRICTLY PRIVATE agreed upon by the parties. The notification day ends at 5:00pm East Standard Time on the day ANC instructs ALCOA to fix the price of the metal component for the requested delivery period. In the event that ANC places more than forty (40) million pounds of volume on any one day, in order to establish the metal component price, ALCOA will use the average of the LME cash settlement prices for the next "X" LME working days (the placement period), plus the contangoes or backwardations applicable to the future delivery periods, where "X" is the total volume placed divided by forty (40) million pounds, and rounded up to the whole number of days. ANC will immediately instruct ALCOA whether or not to implement the program. After completion, ALCOA will notify ANC as to the actual metal component fixed price.