What are the negotiation approaches?
There are three basic approaches. At any point prior to the season, any IFQ holder (including affiliated IFQ holders) and any IPQ holder can engage in Open Negotiations. Other approaches that may be used by Arbitration IFQ holders and IPQ holders include a Lengthy Season approach, in which some delivery terms are decided pre-season others are negotiated mid-season. Share Matching is another preseason approach in which Arbitration IFQ holders “match up” shares pre-season with IPQ holders that have available IPQ. There are some limits on when these approaches can be used. Once the season begins, if there is not resolution on specific issues, IFQ and IPQ holders can enter into Binding Arbitration in which an arbitrator uses the Market Report, Non-Binding Price Formula and other information to establish binding contract terms. This system uses the last-best offer approach. During the season, the System allows for Post Arbitration Opt-in. Arbitration IFQ holders who aren’t committed can opt
