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OWNER shall pay ENGINEER for basic services outlined herein, at the hourly rates shown on Exhibit B hereto, for work performed on the — project. It is agreed that the ENGINEER'S compensation, based upon the scope of work presently contemplated, shall not exceed the following amounts Project 1: $52,900 Project 2: $126,400 5.1.2. For Additional Services - OWNER shall pay ENGINEER for additional services rendered under this Agreement as follows: 5.1.2.1. General - For Additional Services rendered, on the basis of per diem hourly rates shown on Exhibit B hereto for services rendered by principals and employees assigned to the Project. 5.1.2.2. Special Consultants - For services and reimbursable expenses of special consultants employed by ENGINEER pursuant to Section 2.1, the amount billed to ENGINEER therefor, times a factor of 1.05. 5.1.2.3. For Reimbursable Expenses - in addition to payments provided for in paragraphs 5.1.2.1. and 5.1.2.2., OWNER shall pay ENGINEER the actual costs of all Reimbursable Expenses incurred in connection with all Additional Services. The term "Reimbursable Expenses" means the actual expense incurred directly or indirectly in connection with the Project for: transportation and subsistence incidental to locations other than the site; furnishing and maintaining field office facilities; subsistence and transportation of on -site observers; toll telephone calls and telegrams; special package delivery charges; laboratory testing f ees; reproduction of reports, Drawings, Specifications,and similar Project - related items in addition to those required under Section 1; and, if authorized in advance by OWNER, overtime work requiring higher than regular rates. 5.2. Times of Pavments 5.2.1. ENGINEER shall submit monthly statements for Basic and Additional Services rendered and for Reimbursable. Expenses incurred. The statements will be based upon ENGINEER'S estimate of the proportion of the total services actually completed at the time of billing. OWNER shall make prompt monthly payments in response to ENGINEER'S monthly statements. 5.3. Other Provisions Concerning Payments 5.3.1. If OWNER fails to make any payment due ENGINEER for services and expenses within sixty days after receipt of ENGINEER'S statement therefor, the amounts due ENGINEER will be increased at the rate of 1% per month from the thirtieth day, and in addition, ENGINEER may, after giving seven days' written notice to OWNER, suspend services under this Agreement until he has been paid in full all amounts ..due him for services, expenses and charges. Page 11 of 17 Pages