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2. Work for Hire/Intellectual Property Unless otherwise expressly agreed in <br /> writing, all work, including writings and publications, created pursuant to this <br /> Agreement, or for the City of Everett, belong to the City of Everett and all rights in such <br /> work belong to the City of Everett. Work created by Contractor prior to engagement, or <br /> not solely for performance in the course of the engagement for the City, shall not be work <br /> for hire. <br /> 3. Time of Beginning and Completion of Performance. Performance of this <br /> Agreement shall commence as of the date of execution of this Agreement. A draft Phase I <br /> report shall be delivered to the City within 11 weeks of the execution of this Agreement. <br /> If a Phase II analysis is warranted,based on the Contractor's findings regarding the <br /> soundness of projections and estimates that have been made of scheduled air service that <br /> can be attracted to Paine Field,then the City will authorize the Contractor to proceed with <br /> a Phase II analysis. A draft Phase II report shall be delivered to the City within 15 weeks <br /> of the City's authorization to proceed. <br /> 4. Compensation. <br /> A. The Contractor shall be paid by the City only for completed Work and for <br /> services actually rendered which are described herein. Such payment shall be <br /> full compensation for Work performed or services rendered, including, but not <br /> limited to, all labor, materials, supplies,mileage, gas,phone parking, lodging, <br /> food, equipment and incidentals necessary to complete the Work. <br /> B. The Contractor shall be paid upon the City's receipt of an invoice, on a monthly <br /> basis. <br /> C. Contractor may receive payment as reimbursement for Special Eligible Expenses <br /> actually incurred and documented. "Special. Eligible Expenses" means those <br /> types and amounts of expenses for which prior written approval or <br /> documentation is obtained from the City prior to Contractor's incurring the <br /> expense. If approval for reimbursement is not obtained from the City prior to the <br /> Contractor's incurring the expense, Contractor acknowledges that the City <br /> retains the option not to reimburse the Contractor. If authorized,the City may(at <br /> its sole option) obtain or arrange air travel for the Contractor. <br /> D. Total compensation, including all services and expenses, but excluding Special <br /> Eligible Expenses, shall not exceed a maximum of Sixty-Nine Thousand Three <br /> Hundred Dollars ($69,300.00). <br /> E. If Contractor fails or refuses to accept direction or carry out the reasonable <br /> directions of the City in performance of its work, the City may, in addition to any <br /> other remedy, withhold from any payment otherwise due an amount that the City <br /> in good faith believes is equal to the cost to the City of correcting, re-procuring, <br /> or remedying any damage caused by Contractor's conduct. <br /> 5. Termination of Contract. City reserves the right to terminate this Agreement at <br /> any time by sending written notice of termination to Contractor("Notice"). The Notice <br /> shall specify a termination date ("Termination Date") at least fourteen(14) days after the <br /> Page 2 <br />