2.  Payment for Contractor's Services

The client shall pay the contractor for the services described in this contract as follows:

2.01 Basic Services - The contractor shall provide basic services for the project consisting of consultation, research, design, supervision of implementation, and coordination of the project and its execution. In connection with performing basic services, the contractor shall prepare and present materials to the client that demonstrate or describe the designer's intentions and shall prepare various materials, such as artwork, drawings, and specifications, to enable the design to be printed, fabricated, installed, or otherwise implemented.

2.02 Supplementary Services - In addition to the services described above, the contractor's fee may also include the provision of certain specialized supplementary services. Such supplementary services might include: Creative services including copy development, editing, photography, and illustration. Preparation of existing materials for reproduction such as partial or complete redrawing, line conversion, retouching, and making camera-ready color separations. Preparation of special presentation materials including detailed renderings, comps, mockups, and presentations.

The contractor's services under this agreement do not include implementation such as printing, fabrication, and installation of the project design. The client and contractor agree that any such implementation is to be provided by others, and the contractor's services with respect to such implementation shall be restricted to providing specifications, coordination, and management. Unless otherwise specified in this agreement, the contractor shall have no responsibility to the providers of such implementation, and charges therefore shall be billed directly to the client. While not responsible for implementation, in a supervisory capacity the contractor may assume responsibility for paying such charges, and the contractor shall be entitled to reimbursement from the client for implementation costs plus such handling charge as is specified herein.

2.03 Rate of Payment - Client agrees to pay contractor for services in accordance with the terms of invoicing listed below. Payment shall be made to the contractor in the gross amount of payment due, without withholding federal, state or local income taxes. Contractor agrees to pay all self-employment and other taxes, including income taxes and estimates thereof.

Client shall pay any and all taxes, except income taxes including but not limited to sales or use taxes. Contractor shall be responsible for any taxes or penalties assessed by reason of any claims that contractor is an employee of client, and client and contractor specifically agree that contractor is not an employee of client.

2.04 Invoicing - Client shall pay the amounts agreed to herein upon receipt of invoices or statements, sent by the contractor. Contractor will extend services of 1 hour, but not to exceed 20 hours. Client agrees to immediately pay contractor upon receipt of contractor's invoice. Should contractor's invoice not be paid within ten (10) days of receipt thereof, contractor shall have the absolute right to suspend all work for client until such time as the invoice amount, in addition to a late payment charge, is paid. The late payment charge is to compensate contractor for the administrative costs incurred by contractor as the result of such late payment.

If any invoice is unpaid thirty or more days past its due date, contractor shall have the absolute right to terminate this agreement without further liability. Client shall still remain fully liable to contractor for all services performed by contractor up to the date of termination of the agreement by contractor.

2.05 Summary of Hours Allotted Under Agreement - Where specified in this contract, the client shall pay the contractor at the contractor's standard hourly rates as in effect at this time. No change shall be made in the contractor's standard rates prior to 90 days from the date of this agreement.

2.06 Initial Payment - Upon signing this agreement, client shall make a payment equal to the amount of the required deposit.

2.07 Payment Schedule - After receipt of an invoice, the client shall make payments.

2.08 Revisions and Additions - A fixed fee or fee estimated not to exceed a specified amount is based upon the time estimated to complete the services specified in this agreement during normal working hours. Any revisions or additions to the services described in this agreement shall be billed as additional services not included in any fixed fee or estimated fee specified above. Such additional services shall include, but shall not be limited to, changes in the extent of work, changes in the complexity of any elements of the project, and any changes made after approval has been given for a specific stage of design, documentation, or preparation of artwork.

2.09 Rush Work - The client shall pay a surcharge for any services requiring work to be performed outside of normal working hours by reason of unusual deadlines or as a consequence of the client not meeting scheduled times for delivery of information, materials, or approvals. The surcharge for rush work shall be at the standard rates plus an additional 50% of the total, for each instance. Normal working hours for this project are during regular business hours of Monday - Friday, 9am-5pm.

2.10 Reimbursable Expense - The client shall reimburse the contractor for all out-of-pocket expenses incurred by the contractor with respect to the project including, but not limited to, expenditures for: Implementation, typesetting, prints, photography, overlays, proofs, presentation materials, copies, telephone charges, postage, and shipping.

2.11 Reimbursable and Implementation Budgets - Any budget figures or estimates for reimbursable expenses or implementation charges such as printing, fabrication, or installation are for planning purposes only. The contractor shall use his or her best efforts to work within stated budgets but shall not be liable if such expenses exceed budgets. The contractor shall maintain records of hours and reimbursable expenses and shall make such records available to the client for inspection on request.