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Annual Recurring Charge (ARC) Adjustment Procedure at Time of <br />Technology Refresh <br />A <br />Index at time of calculation: Dec'20 <br />243.333 <br />B <br />Index at Effective Date of contract: Nov' 14 <br />215.303 <br />C <br />Dec'20 Index divided by Nov' 14 Index <br />(ARC multiplier) <br />(243.303/215.303) _ <br />13.019% <br />D <br />I APX6000 ARC at Effective Date <br />$768.23 <br />E <br />Nov' 14 ARC multiplied by ARC multiplier <br />$768.23 x (1 +13.019 %) = <br />$868.25 <br />F <br />ADJUSTED PRICE <br />$868.25 <br />Termination: <br />• In the event that the contract is terminated by Motorola the customer will have the <br />right to take title to equipment. <br />If Cabarrus County chooses to cancel the contract, the County will pay the following <br />termination charges. All charges are based upon cancellation at the end of the <br />contract year: <br />1 <br />1 2 <br />1 3 <br />1 4 <br />1 5 <br />1 6 <br />$1,584,638 <br />1 $1,355,960 <br />1 $1,127,282 <br />1 $898,604 <br />1 $669,925 <br />1 $441,247 <br />• At the time of a subscriber refresh the County shall pay an amount equal to $441,247 <br />in the event the County terminates the agreement prior to the full 18 -year term. <br />Motorola Solutions, Inc. Device Management Agreement- Confidential 10/14/14 <br />Page 28 <br />Attachment number 1 <br />G -2 Page 361 <br />