Common use of External Affairs Clause in Contracts

External Affairs. Provide services in support of corporate strategies for managing relationships with federal, state and local governments, agencies and legislative bodies. Formulate and assist with public relations and communications programs and administration of corporate contribution and community affairs programs. EXHIBIT B METHODS OF ALLOCATION FOR VIRGINIA POWER Virginia Power shall allocate costs independently to DRS using the following methods: I. The costs of rendering service by Virginia Power will include all costs of doing business including interest on debt and a return for the use of equity capital. A. Virginia Power will maintain a separate record of the expenses of each department. The expenses of each department will include: 1. those expenses that are directly attributable to such department, and 2. an appropriate portion of those office and housekeeping expenses that are not directly attributable to a department but which are necessary to the operation of such department. B. Expenses of the department will include salaries and wages of employees, materials and supplies, and all other expenses attributable to the department. The expenses of a department will not include: 1. those incremental out-of-pocket expenses that are incurred for the direct benefit and convenience of an individual company or group of companies, 2. Virginia Power overhead expenses that are attributable to maintaining the corporate existence of Virginia Power, and all other incidental overhead expenses including rent and utilities, depreciation, and those auditing fees, internal auditing department expenses and accounting department expenses attributable to Virginia Power. C. Virginia Power will establish annual budgets for controlling the expenses of each department and for determining estimated costs to be included in interim monthly billing. III A. There will be attributed to the salary or wage of an employee who directly provides services to DRS, a percentage of all other expenses of such employee's department. B. Employees who directly provide service to DRS will maintain a record of the time they are employed in rendering such service to DRS. An hourly rate will be determined by dividing the total salary or wage expense attributable to the employee by the productive hours reported by such employee.

External Affairs. Provide services in support of corporate strategies for ---------------- managing relationships with federal, state and local governments, agencies and legislative bodies. Formulate and assist with public relations and communications programs and administration of corporate contribution and community affairs programs. EXHIBIT B METHODS OF ALLOCATION FOR VIRGINIA POWER Virginia Power shall allocate costs independently to DRS DRI Services using the following methods: I. The costs of rendering service by Virginia Power will include all costs of doing business including interest on debt and but excluding a return for the use of equity capitalcapital for which no charge will be made to DRI Services. A. Virginia Power will maintain a separate record of the expenses of each department. The expenses of each department will include: 1. those expenses that are directly attributable to such department, and 2. an appropriate portion of those office and housekeeping expenses that are not directly attributable to a department but which are necessary to the operation of such department. B. Expenses of the department will include salaries and wages of employees, rent and utilities, materials and supplies, depreciation, and all other expenses attributable to the department. The expenses of a department will not include: 1. those incremental out-of-pocket expenses that are incurred for the direct benefit and convenience of an individual company or group of companies, 2. Virginia Power overhead expenses, including expenses of the corporate secretary's department that are attributable to maintaining the corporate existence of Virginia Power, and all other incidental overhead expenses including rent and utilities, depreciation, and those auditing fees, internal auditing department expenses and accounting department expenses attributable to Virginia Power. C. Virginia Power will establish annual budgets for controlling the expenses of each department and for determining estimated costs to be included in interim monthly billing. III A. Employees in each department will be divided into two groups: 1. Group A will include those employees who may render service to DRI Services, and 2. Group B will include those office and general service employees, such as secretaries, file clerks and administrative assistants, who generally assist employees in Group A or render other housekeeping services and who are not engaged directly in rendering service to DRI Services. B. Expenses set forth in Section II. above will be separated to show: 1. salaries and wages of Group A employees, and 2. all other expenses of the department. C. There will be attributed to the each dollar of a Group A employee's salary or wage of an employee who directly provides services to DRSwage, a that percentage of all other expenses of such employee's his department (as defined in B above), that his salary or wage is to the total Group A salaries and wages of that department. B. Employees who directly provide service to DRS D. Group A employees in each department will maintain a record of the time they are employed in rendering such service to DRSDRI Services. An hourly rate will be determined by dividing the total salary or wage expense attributable to the a Group A employee as determined under subsection C above by the productive hours reported by such employee. IV. The charge to DRI Services for a particular service will be determined by multiplying the hours reported by Group A employees in rendering such service to DRI Services by the hourly rates applicable to such employees. V. To the extent appropriate and practical, the foregoing computations of hourly rates and charges may be determined for groups of employees within reasonable salary range limits. VI. Those expenses of Virginia Power that are not included in the annual expense of a department under Section II. above will be charged to DRI Services as follows: A. Incremental out-of-pocket costs incurred for the direct benefit and convenience of DRI Services will be charged directly to such company. B. Virginia Power overhead expenses referred to in Section II. above will be charged to DRI Services in the proportion that the charges made to DRI Services for costs, other than those set forth in this Section VI, are to the total of all department costs as defined in Section II. VII. Notwithstanding the foregoing basis of determining cost allocations for billing purposes, cost allocations for certain services involving machine operations and production units will be determined on an appropriate basis established by Virginia Power relating to the direct use of machine equipment or production units. VIII. Monthly bills will be issued for the services rendered to DRI Services on an actual or estimated basis. Estimates will normally be predicated on service department budgets and estimated productive hours of employees for the year. At the end of each year, estimated figures will be revised to reflect actual experience during such year and adjustments will be made in amounts billed to give effect to such revision. IX. If the use of a basis of allocation would result in an inequity because of a change in operations or organization, then Virginia Power may adjust the basis to effect an equitable distribution.

External Affairs. Provide services in support of corporate strategies for managing relationships with federal, state and local governments, agencies and legislative bodies. Formulate and assist with public relations and communications programs and administration of corporate contribution and community affairs programs. EXHIBIT B METHODS OF ALLOCATION FOR VIRGINIA POWER Virginia Power shall allocate costs independently to DRS DRI Services using the following methods: I. The costs of rendering service by Virginia Power will include all costs of doing business including interest on debt and but excluding a return for the use of equity capitalcapital for which no charge will be made to DRI Services. A. Virginia Power will maintain a separate record of the expenses of each department. The expenses of each department will include: 1. those expenses that are directly attributable to such department, and 2. an appropriate portion of those office and housekeeping expenses that are not directly attributable to a department but which are necessary to the operation of such department. B. Expenses of the department will include salaries and wages of employees, rent and utilities, materials and supplies, depreciation, and all other expenses attributable to the department. The expenses of a department will not include: 1. those incremental out-of-pocket expenses that are incurred for the direct benefit and convenience of an individual company or group of companies, 2. Virginia Power overhead expenses, including expenses of the corporate secretary's department that are attributable to maintaining the corporate existence of Virginia Power, and all other incidental overhead expenses including rent and utilities, depreciation, and those auditing fees, internal auditing department expenses and accounting department expenses attributable to Virginia Power. C. Virginia Power will establish annual budgets for controlling the expenses of each department and for determining estimated costs to be included in interim monthly billing. III A. Employees in each department will be divided into two groups: 1. Group A will include those employees who may render service to DRI Services, and 2. Group B will include those office and general service employees, such as secretaries, file clerks and administrative assistants, who generally assist employees in Group A or render other housekeeping services and who are not engaged directly in rendering service to DRI Services. B. Expenses set forth in Section II. above will be separated to show: 1. salaries and wages of Group A employees, and 2. all other expenses of the department. C. There will be attributed to the each dollar of a Group A employee's salary or wage of an employee who directly provides services to DRSwage, a that percentage of all other expenses of such employee's his department (as defined in B above), that his salary or wage is to the total Group A salaries and wages of that department. B. Employees who directly provide service to DRS D. Group A employees in each department will maintain a record of the time they are employed in rendering such service to DRSDRI Services. An hourly rate will be determined by dividing the total salary or wage expense attributable to the a Group A employee as determined under subsection C above by the productive hours reported by such employee. IV. The charge to DRI Services for a particular service will be determined by multiplying the hours reported by Group A employees in rendering such service to DRI Services by the hourly rates applicable to such employees. V. To the extent appropriate and practical, the foregoing computations of hourly rates and charges may be determined for groups of employees within reasonable salary range limits. VI. Those expenses of Virginia Power that are not included in the annual expense of a department under Section II. above will be charged to DRI Services as follows: A. Incremental out-of-pocket costs incurred for the direct benefit and convenience of DRI Services will be charged directly to such company. B. Virginia Power overhead expenses referred to in Section II. above will be charged to DRI Services in the proportion that the charges made to DRI Services for costs, other than those set forth in this Section VI, are to the total of all department costs as defined in Section II. VII. Notwithstanding the foregoing basis of determining cost allocations for billing purposes, cost allocations for certain services involving machine operations and production units will be determined on an appropriate basis established by Virginia Power relating to the direct use of machine equipment or production units. VIII. Monthly bills will be issued for the services rendered to DRI Services on an actual or estimated basis. Estimates will normally be predicated on service department budgets and estimated productive hours of employees for the year. At the end of each year, estimated figures will be revised to reflect actual experience during such year and adjustments will be made in amounts billed to give effect to such revision. IX. If the use of a basis of allocation would result in an inequity because of a change in operations or organization, then Virginia Power may adjust the basis to effect an equitable distribution.