Common use of HSC Calculation Clause in Contracts

HSC Calculation. The monthly HSC charge for each security hardware in each month (HSC) will equal the following: Monthly HSC = (P * [(s/12*(1+s/12)n)/((1+(s/12))n-1)] + [(xx/12) * 0.5P] +M ) Where:  Monthly HSC = the monthly Hardware Service Charge  P = the prorated monthly amount of actual Capital Expenditures. Service Component Provider will use commercially reasonable efforts to obtain the lowest possible commercially available discounted prices for the Capital Expenditures, including through DIR’s contracts as set forth in the Agreement  M = the total amount of Maintenance Costs that were paid during the applicable month, to the extent required beyond the warranty period  n = equals the finance term  s = equals the service charge rate for the term;  XX = the then-applicable personal property tax at time of purchase Copies of relevant Third Party invoices and such other information reasonably requested by DIR or Customer will also be included with the Monthly Invoice. Service Component Provider shall obtain Customer’s approval prior to incurring any Capital Expenditures (including the Capital Expenditure amounts for leased security hardware) or Maintenance Costs. If Service Component Provider does not obtain Customer’s prior approval in respect of any Capital Expenditures or Maintenance Costs, then such costs shall not be included in the HSC and Service Component Provider shall be responsible for such costs. If Customer requests Service Component Provider to remove security hardware prior to the end of its applicable refresh term, Service Component Provider shall use commercially reasonable efforts to re-deploy such security in any environment, including in Service Component Provider’s environment (internally or in support of other customers). Any remaining HSC shall continue until the earlier of (a) such time as Service Component Provider is able to re-deploy such security hardware or (b) end of the refresh term, using a discount rate equal to the applicable service charge rate as included in the HSC calculation, provided that Service Component Provider continues to use commercially reasonable efforts to re- deploy such security hardware as set forth above, or (c) in the event such security hardware is no longer being used because of a termination of this Agreement, at such time that Customer is no longer using the security hardware for receipt of Services, in which case Customer shall purchase the security hardware as set forth in (b) hereof. With respect to any security hardware that Customers elects, in Customer’s sole discretion, to keep installed following the end of its applicable refresh term, only the personal property taxes actually paid by Service Component Provider in respect of such security hardware (and not any other Capital Expenditures) and any ongoing Maintenance Costs paid by Service Component Provider shall continue to be included in the HSC until security hardware is refreshed or removed. If Customer cancels an order for previously approved HSC security hardware, and such hardware cannot be returned to the Third Party, Service Provider shall assist Customer with the redeployment, as appropriate, within either Customer or Service Provider (internally or for its other customers), as set forth above. In the event, such security hardware cannot be returned or redeployed, Customer shall be responsible for any commercially reasonable restocking fees or other charges resulting from the cancellation request (i.e. freight).

HSC Calculation. The monthly HSC charge for each security hardware in each month (HSC) will equal the following: Monthly HSC = (P * [(s/12*(1+s/12)n)/((1+(s/12))n-1)] + [(xx/12) * 0.5P] +M ) Where:  ▪ Monthly HSC = the monthly Hardware Service Charge  ▪ P = the prorated monthly amount of actual Capital Expenditures. Service Component Provider will use commercially reasonable efforts to obtain the lowest possible commercially available discounted prices for the Capital Expenditures, including through DIR’s contracts as set forth in the Agreement  ▪ M = the total amount of Maintenance Costs that were paid during the applicable month, to the extent required beyond the warranty period  ▪ n = equals the finance term  ▪ s = equals the service charge rate for the term;  ▪ XX = the then-applicable personal property tax at time of purchase Copies of relevant Third Party invoices and such other information reasonably requested by DIR or Customer will also be included with the Monthly Invoice. Service Component Provider shall obtain Customer’s approval prior to incurring any Capital Expenditures (including the Capital Expenditure amounts for leased security hardware) or Maintenance Costs. If Service Component Provider does not obtain Customer’s prior approval in respect of any Capital Expenditures or Maintenance Costs, then such costs shall not be included in the HSC and Service Component Provider shall be responsible for such costs. If Customer requests Service Component Provider to remove security hardware prior to the end of its applicable refresh term, Service Component Provider shall use commercially reasonable efforts to re-deploy such security in any environment, including in Service Component Provider’s environment (internally or in support of other customers). Any remaining HSC shall continue until the earlier of (a) such time as Service Component Provider is able to re-deploy such security hardware or (b) end of the refresh term, using a discount rate equal to the applicable service charge rate as included in the HSC calculation, provided that Service Component Provider continues to use commercially reasonable efforts to re- deploy such security hardware as set forth above, or (c) in the event such security hardware is no longer being used because of a termination of this Agreement, at such time that Customer is no longer using the security hardware for receipt of Services, in which case Customer shall purchase the security hardware as set forth in (b) hereof. With respect to any security hardware that Customers elects, in Customer’s sole discretion, to keep installed following the end of its applicable refresh term, only the personal property taxes actually paid by Service Component Provider in respect of such security hardware (and not any other Capital Expenditures) and any ongoing Maintenance Costs paid by Service Component Provider shall continue to be included in the HSC until security hardware is refreshed or removed. If Customer cancels an order for previously approved HSC security hardware, and such hardware cannot be returned to the Third Party, Service Provider shall assist Customer with the redeployment, as appropriate, within either Customer or Service Provider (internally or for its other customers), as set forth above. In the event, such security hardware cannot be returned or redeployed, Customer shall be responsible for any commercially reasonable restocking fees or other charges resulting from the cancellation request (i.e. freight).