SUPPLIER’S DISTRIBUTION AND SINGLE PACK CAPABILITY. Supplier shall accommodate NCR special requests for drop shipping single unit packs (as opposed to any MOQ normally ordered by NCR manufacturing) of Parts or Hardware to NCR Customers or NCR designated Distribution Centers in the Americas, Europe, the Middle East and Africa, and Asia Pacific and Japan. Any adjustment in price for creating single unit packs shall first be discussed and agreed to between the parties before implementation. *** End of Schedule *** NCR Confidential SCHEDULE E COST REDUCTION PLAN Supplier will actively pursue cost reductions and implement continuous cost improvements through value analysis and value engineering. Supplier will provide a quarterly cost reduction plan to meet the target set below. In furtherance hereof, NCR may conduct benchmarking activities, including reverse auctions, with respect to the Product prices. All material cost reductions and manufacturing cost reductions identified by the Supplier, will be [*****]. All material and value engineering cost reductions identified by NCR will be [*****]. Cost reduction will mean the net value of the on-going reduction less the costs of introduction amortised over a mutually agreed period of time and / or volume of product delivered, and will be reflected as corresponding price reductions. A formal review of manufacturing and material costs aimed at the implementation of a cost reduction program will be carried out on an on-going basis. Supplier commits to best efforts to achieve maximum cost reduction annually. *** End of Schedule *** NCR Confidential SCHEDULE F
