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"Hourly Rate ", the ENGINEER will be paid on the basis of actual hours of <br />work performed by essential personnel exclusively on this Agreement at <br />the rates identified in Exhibit B for each classification of employee. <br />4. The ENGINEER shall receive as payment from the OWNER for the <br />Additional Services rendered under Appendix "E" of this Agreement as <br />follows: <br />a. For Additional Services of ENGINEER's principals and employees <br />engaged on the project, except services to appear as a consultant <br />or witness, on the basis of the employee classification hourly rate <br />and all Reimbursable Expenses incurred in connection with all <br />Additional Services in accordance with the ENGINEER's fee <br />structure attached as Exhibit B to this Agreement and made an <br />integral part hereof. <br />b. For services and Reimbursable expenses of independent <br />professional associates and consultants employed by ENGINEER <br />to render Additional Services, the amount billed to ENGINEER <br />therefore times a factor of 1.20. <br />C. For services rendered by ENGINEER's principals and employees to <br />appear as consultants or witnesses in any litigation, arbitration or <br />other legal or administrative proceeding, except for time spent in <br />preparing to appear in any such litigation, arbitration or proceeding, <br />at the rate of $2,500.00 per principal or employee per day or any <br />portion thereof. <br />d. The hourly rates, which are attached as Exhibit B and used as a <br />basis for payment, mean salaries and wages (basic and incentive) <br />paid to all ENGINEER's personnel engaged directly on the project, <br />including, but not limited to, engineers, architects, surveyors, <br />planners, designers, draftsmen, specification writers, estimators, <br />other technical and business personnel, and include the cost of <br />customary and statutory benefits including, but not limited to, social <br />security contributions, unemployment, excise and payroll taxes, <br />worker's compensation, health and retirement benefits, sick leave, <br />vacation and holiday pay, other group benefits, overhead expenses <br />and profit. <br />e. Reimbursable Expenses mean the actual expenses incurred by <br />ENGINEER or ENGINEER's independent professional associates <br />or consultants, directly or indirectly in connection with the project, <br />such as expenses for: transportation and subsistence incidental <br />thereto; obtaining bids for proposals from Contractor(s), overnight <br />mail, facsimile (FAX) transmittals, toll telephone calls and <br />telegrams; reproduction of reports, drawings, specifications, bidding <br />documents, and similar project related items in addition to those <br />2 of 4 <br />Appendix "D" <br />