Common use of HSC Calculation Clause in Contracts

HSC Calculation. The monthly charges for asset acquisitions in a given 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 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 actually paid during the applicable month, to the extent required beyond the warranty period ▪ n = equals 60 months (the finance term) ▪ s = equals the service charge rate of 7% for a 60 month lease; ▪ XX = the then-applicable personal property tax at time of purchase; and ▪ Current benchmark rates can be found at: ▇▇▇▇://▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇/releases/h15/update/ For any STM Server which supports a single DCS Customer, whether it is single or multi-instance, the calculation above is made per Server, each of which is billed to the applicable DCS Customer. HSC for STM Servers that support multiple DCS Customers are handled as follows:

HSC Calculation. The monthly charges for asset acquisitions in a given 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 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 actually paid during the applicable month, to the extent required beyond the warranty period ▪ n = equals 60 months (the finance term) ▪ s = equals the service charge rate of 7% for a 60 month lease; ▪ XX = the then-applicable personal property tax at time of purchase; and ▪ Current benchmark rates can be found at: ▇▇▇▇://▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇/releases/h15/update/ For any STM Server which supports a single DCS DIR Customer, whether it is single or multi-instance, the calculation above is made per Server, each of which is billed to the applicable DCS DIR Customer. HSC for STM Servers that support multiple DCS DIR Customers are handled as follows: