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Group Retention Incentive Rebate: The group retention incentive is designed to reward NEOSO and its collective membership for their purchases with ADW as part of the NEOSO program. As the group's combined purchases increase, so does the rebate. The rebate is calculated on the group's annual purchases as follows: Annual Grou Purchases Rebate Earned $1,500,000 - $2,999,000 7% $3,000,000+ 13% Sample Pricing of Parts for 2003 Ford Crown Victoria Under NEOSO's program with ADW, NEOSO members can achieve the following price savings by qualifying for each of the available discounts. Part Descri tion Part Number Base Price Max. Disc. Price Motorcraft Air Filter FA1032 6.09 5.27 Motorcraft Fuel Filter FG9866 8.15 7.06 Motorcraft Oil Filter FL820S 3.55 3.07 Motorcraft Ser Belt JK6922A 24.27 21.02 Motorcraft S ark Plu AGSF32PM 2.23 1.93 Motorcraft Batte BXT65-650 73.68 63.80 Motorcraft Severe Dut Brake Pads BRSD931 60.77 52.62 Motorcraft Brake Rotor BRR111 63.83 55.27 Stocking Requirements: Each municipality will be required to stock $2500 in parts inventory from ADW. • Minimum of 6 batteries are required stock. • Brakes and filters are recommended and ADW offers an additional 2% discount for stocking these lines. Program and Rebates Term: This program is in effect for 1-year and will be reviewed quarterly. NEOSO and ADW will determine whether to issue rebates on a six-month or annual basis as the program is implemented. All rebates will be issued to NEOSO; those rebates will be allocated between NEOSO and inembers participating in the auto parts program at the discretion of NEOSO's board. Additional Required Information: • Credit applications from each NEOSO member • Contact information for each NEOSO member • Computer System profile • Internet Connectivity • Current vehicle inventory • Parts usage data -4- '. . . , '1'eg.g?+dK?1?F, ... .:. ? .. .. . . . . .. . . .. . .. ?_