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Material Material Overhead Other Direct Cost Total Manufacturing Cost G&A Expense Total Cost Prot Requested Adjustment Conrad Claim 95,000 yards @ $10/yard $ 950,000 5%

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Material Material Overhead Other Direct Cost Total Manufacturing Cost G&A Expense Total Cost Prot Requested Adjustment Conrad Claim 95,000 yards @ $10/yard $ 950,000 5% of Material Cost $ 47,500 Estimation of cost impact of the $ 500 change 1,000 Claim preparation cost $ 999,000 10% of Total Manufacturing Cost 99,900 $1,098,900 164,835 15% of Total Cost $1,263,735 quiiable Adjustment Negotiation Objective Material Accepted Conradkproposed amount 950,000 Material Overhead Accepted"Technical D 250 recommendation Other Direct Cost Accepted Conrad proposed amount 500 Total Manufacturing S 950,750 Cost G8/ 1 xponsc Accepted proposed 10% rate 95,075 ofal Cost 51.045 825 Pol 5% of Total Cost because costs all 52.29 incurred Adjustment Objective $1.098 16Pro oosed E . uitable Ad'ustment Material 95,000 yards @ $10 yard $ 950,000 Material Overhead 5% of Material Cost $ 47,500 Other Direct Cost Estimation of cost impact $ 500 of Total Manufacturing the change Cost $ 998,000 G&A Expense $ 99,800 10% of Total Total Cost Manufacturing Cost $1,097,800 Prot $ 164,670 Requested Adjustment 15% of Total Cost $1,262,470

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