Common use of Cost Elements Clause in Contracts

Cost Elements. Material Cost [*] • Module Material ▇▇▇▇ up [*] • Sub-assy/Components Material ▇▇▇▇ up [*] • SOE Hours Agreed upon average build time Base Labor Rate [*] • Labor Resale Rate [*] • CCR Rate of Change [*] • Freight-in Estimated at [*] of incoming material • Teardown Fee [*] Labor Rate *actual Teardown time for Configurable Module/Sub-assy (*) For parts manufactured by KTec, such Cost will be calculated as follow: Material Cost = [*] Pricing Model for Standard Modules: Pricing = [*] Where: • SOE Hours are actual, agreed upon, built times for the Standard Module —See List 1 of this Attachment Teardown: Teardown will be implemented if reconfiguration becomes impractical and if instructed by Applied or if Module becomes excess or obsolete. Applied Teardown Credit = [*] Pricing Model for Configurable Modules: Pricing = [*] Where: • SOE Hours are average, agreed upon, built times for Module's Type (i.e. Controller) • CCR rate is applied to the SOE hours to compensate for average configuration changes. In the formula above, if actual SOE Hours for a specific Module exceed [*] of the average SOE Hours for the Module's Type, due to Applied configuration changes, the SOE Hours will be replaced by the actual SOE Hours for the specific Module and the CCR rate of change removed. —See List 2 of this Attachment *Confidential Treatment Requested—Indicates material that has been omitted and for which confidential treatment has been requested. Teardown: Teardown will be implemented if reconfiguration becomes impractical and if instructed by Applied or if Module becomes excess or obsolete. Applied Teardown Credit = [*] Purchased Items Pricing = [*] Manufactured Items Pricing = [*] —See List 3 of this Attachment

Cost Elements. Material Cost [*] • Module Material ▇▇▇▇ up [*] for all others • Sub-assy/Components Material ▇▇▇▇ up [*] • SOE Hours Agreed upon average build time Base Labor Rate [*] • Labor Resale Rate [*] Multiplier on Base Labor Rate • CCR Rate of Change [*] application to labor only • Freight-in Estimated at [*] of incoming material • Teardown Fee [*] $X,XX per Standard Module type Labor Rate *actual Teardown time for Configurable Module/Sub-assy (*) For parts manufactured by KTec, such Cost will be calculated as follow: Material Cost = [*] Pricing Model for Standard Modules: Pricing = [*] Where: • SOE Hours are actual, agreed upon, built times for the Standard Module —See List 1 of this Attachment Teardown: Teardown will be implemented if reconfiguration becomes impractical and if instructed by Applied or if Module becomes excess or obsolete. Applied Teardown Credit = [*] Pricing Model for Configurable Modules: Pricing = [*] Where: • SOE Hours are average, agreed upon, built times for Module's Type (i.e. Controller) • CCR rate is applied to the SOE hours to compensate for average configuration changes. In the formula above, if actual SOE Hours for a specific Module exceed [*] of the average SOE Hours for the Module's Type, due to Applied configuration changes, the SOE Hours will be replaced by the actual SOE Hours for the specific Module and the CCR rate of change removed. —See List 2 of this Attachment *Confidential Treatment Requested—Indicates material that has been omitted and for which confidential treatment has been requested. Teardown: Teardown will be implemented if reconfiguration becomes impractical and if instructed by Applied or if Module becomes excess or obsolete. Applied Teardown Credit = [*] Purchased Items Pricing = [*] Manufactured Items Pricing = [*] —See List 3 of this Attachment

Cost Elements. Material Cost [*] • Module Material ▇▇▇▇ up [*] • Sub-assy/Components Material ▇▇▇▇ up [*] • SOE Hours Agreed upon average build time • Base Labor Rate [*] • Labor Resale Rate [*] • CCR Rate of Change [*] • Freight-in Estimated at [*] of incoming material • Teardown Fee [*] Labor Rate rate *actual Teardown time for Configurable Module/Sub-assy (*) For parts manufactured by KTec, such Cost will be calculated as follow: Material Cost = [*] Pricing Model for Standard Modules: Pricing = [*] Where: • SOE Hours are actual, agreed upon, built times for the Standard Module —See List 1 of this Attachment Teardown: Teardown will be implemented if reconfiguration becomes impractical and if instructed by Applied or if Module becomes excess or obsolete. Applied Teardown Credit = [*] Pricing Model for Configurable Modules: Pricing = [*] Where: • SOE Hours are average, agreed upon, built times for Module's Type (i.e. Controller) • CCR rate is applied to the SOE hours to compensate for average configuration changes. In the formula above, if actual SOE Hours for a specific Module exceed [*] of the average SOE Hours for the Module's Type, due to Applied configuration changes, the SOE Hours will be replaced by the actual SOE Hours for the specific Module and the CCR rate of change removed. —See List 2 of this Attachment *Confidential Treatment Requested—Indicates material that has been omitted and for which confidential treatment has been requested. Teardown: Teardown will be implemented if reconfiguration becomes impractical and if instructed by Applied or if Module becomes excess or obsolete. Applied Teardown Credit = [*] Purchased Items Pricing = [*] Manufactured Items Pricing = [*] —See List 3 of this Attachment