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2.5 Hourly Fees. Consultant will not perform any work on an hourly basis, and costs <br />for the work shall not exceed the amounts shown on the following fee schedule <br />attached hereto as Exhibit B. <br />2.6 Reimbursable Expenses. Reimbursable expenses are included in the <br />implementation costs specified in Exhibit B of this Agreement, and no additional <br />expenses will be incurred by the City. <br />2.7 Payment of Taxes. Consultant is solely responsible for the payment of <br />employment taxes incurred under this Agreement and any similar federal or state <br />taxes. <br />2.8 Payment upon Termination. In the event that the City or Consultant terminates <br />this Agreement pursuant to Section 8, the City shall compensate the Consultant <br />for all outstanding costs incurred for work satisfactorily completed as of the date <br />of written notice of termination. Consultant shall maintain adequate logs and <br />timesheets in order to verify costs incurred to that date. <br />2.9 Authorization to Perform Services. The Consultant is not authorized to perform <br />any services or incur any costs whatsoever under the terms of this Agreement <br />until receipt of authorization from the Contract Administrator. <br />Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, <br />at its sole cost and expense, provide all facilities and equipment that may be necessary to <br />perform the services required by this Agreement. City shall make available to Consultant only <br />the facilities and equipment listed in Exhibit C, and only under the terms and conditions set forth <br />therein. <br />Section 4. INSURANCE, REQUIREMENTS. Before beginning any work under this <br />Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall <br />procure the types and amounts of insurance listed below against claims for injuries to persons or <br />damages to property that may arise from or in connection with the performance of the work <br />hereunder by the Consultant and its agents, representatives, employees, and subcontractors. <br />Consistent with the following provisions, Consultant shall provide proof satisfactory to City of <br />such insurance that meets the requirements of this section and under forms of insurance <br />satisfactory in all respects to the City, Consultant shall maintain the insurance policies required <br />by this section throughout the term of this Agreement. The cost of such insurance shall be <br />included in the Consultant's bid. Consultant shall not allow any subcontractor to commence <br />work on any subcontract until Consultant has obtained all insurance required herein for the <br />subcontractor(s) and provided evidence thereof to City. Verification of the required insurance <br />shall be submitted and made part of this Agreement prior to execution. <br />4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, <br />maintain Statutory Workers' Compensation Insurance and Employer's Liability <br />Insurance for any and all persons employed directly or indirectly by Consultant. <br />The Statutory Workers' Compensation Insurance and Employer's Liability <br />Consulting Services Agreement between May 3, 2004 <br />City of San Leandro and ECS Imaging, Inc. Page 3 of 19 <br />~4 <br />