|   | a) | The      Notice of Award; and |
|--------|----|-------------------------------|

|   | b) | The      provisions of this Agreement; the Important Notice to Proposers including      the final Contract Terms and Conditions attached hereto, including the      Specific Contract Provisions and the General Contract Provisions which      incorporate the pre-award Addenda and changes to the Contract Terms and      Conditions set forth in the request for Best and Final Offer (BAFO), the      Testimonium and Acknowledgement pages;and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | The      following Attachments: |
|--|----|---------------------------------|

|   | Attachment      No. 1 | Scope      of Work (Final) |
|--------|-----------------------|----------------------------|

|   | Attachment      No. 2 | Price      Schedule |
|--------|-----------------------|---------------------|

|   | Attachment      No. 3 | Form      of Vehicle Lease Agreement |
|--------|-----------------------|--------------------------------------|

----

|   | Attachment      No. 4 | Schedule      A, Insurance Requirements |
|--------|-----------------------|-----------------------------------------|

|   | Attachment      No. 5 | Schedule      J, Responsibility Questionnaire |
|--------|-----------------------|-----------------------------------------------|

|   | Attachment      No. 6 | Schedule      K, Opportunities for Minority and Women Owned Business      Enterprises |
|--------|-----------------------|---------------------------------------------------------------------------------------|

|   | Attachment      No. 7 | Schedule      W, Compliance with NYS Finance Law Sections 139-j and  139-k |
|--------|-----------------------|----------------------------------------------------------------------------|

|   | Attachment      No. 8 | Schedule      X, Federal Drug and Alcohol TestingRequirements |
|--------|-----------------------|---------------------------------------------------------------|

|   | Attachment      No. 9 | Sample      Printed Trip Ticket |
|--------|-----------------------|---------------------------------|

|   | Attachment      No. 10 | Sample      Printed Manifest |
|--------|------------------------|------------------------------|

|   | Attachment      No. 11 | Operator      Vehicle Condition (OVC) Card |
|--------|------------------------|--------------------------------------------|

|   | Attachment      No. 12 | Preventative      Maintenance Worksheet |
|--------|------------------------|-----------------------------------------|

|   | Attachment      No. 13 | DMV      Approved Accident Prevention CourseProviders |
|--------|------------------------|-------------------------------------------------------|

|   | Attachment      No. 14 | Road      Call Form |
|--------|------------------------|---------------------|

|   | Attachment      No. 15 | Paratransit      Accident/Incident Reports |
|--------|------------------------|--------------------------------------------|

|   | Attachment      No. 16 | National      Transit Database (NTD) Safety and Security  Requirements |
|--------|------------------------|------------------------------------------------------------------------|

|   | Attachment      No. 17 | AAR      Coupon |
|--------|------------------------|-----------------|

|   | Attachment      No. 18 | Driver      Hire/Drop Notice |
|--------|------------------------|------------------------------|

|   | Attachment      No. 19 | Midnight      Fleet Verification Form |
|--------|------------------------|---------------------------------------|

|   | Attachment      No. 20 | Warranty      Information for Sedans |
|--------|------------------------|--------------------------------------|

|   | Attachment      No. 21 | Warranty      Information for Vans |
|--------|------------------------|------------------------------------|

|   | Attachment      No. 22 | Customer      No Show Form |
|--------|------------------------|----------------------------|

|   | Attachment      No. 23 | Maintenance      Performed/Supplies Usage Report |
|--------|------------------------|--------------------------------------------------|

|   | Attachment      No. 24 | FTA      Drug and Alcohol Testing Program |
|--------|------------------------|-------------------------------------------|

|   | Attachment      No. 25 | Operator      Transfer Forms |
|--------|------------------------|------------------------------|

|   | Attachment      No. 26 | Operator      Check by Road Supervisor Form |
|--------|------------------------|---------------------------------------------|

|   | Attachment      No. 27 | Vehicle      Lettering Illustration |
|--------|------------------------|-------------------------------------|

|   | Attachment      No. 28 | Fleet      Profile |
|--------|------------------------|--------------------|

|   | Attachment      No. 29 | Common      Carrier Application |
|--------|------------------------|---------------------------------|

|   | Attachment      No. 30 | Start      Up/Expansion Plan |
|--------|------------------------|------------------------------|

|   | Attachment      No. 31 | Original      RFP, Addenda 1 through 5 and Best and Final Offer Request (Included by      Reference); and |
|--------|------------------------|-----------------------------------------------------------------------------------------------------------|

|   | d) | The      Contractor’s BAFO Price Proposal dated June 26, 2008, as corrected or      revised on or about July 3, 2008 (as ultimately accepted by the      Authority), which is not physically attached hereto.  This      Agreement is deemed to include the entire BAFO Price Proposal by      reference, which the Contractor deems to be propriety and confidential to      the extent that it contains the basis for Contractor’s      pricing.  It is understood that this shall not be construed to      preclude or limit the Authority’s disclosure for the Price Schedule,      Attachment 2, hereto; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | The      Contractor’s Schedule J Responsibility Questionnaire (Attachment No. 5)      which is not physically attached hereto.  The Agreement is      deemed to include by reference those portions of the Responsibility      Questionnaire which contain additional conditions and obligations on the      Contractor and rights in favor of the Authority;  and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | f) | The      original RFP, Addenda 1 through 5 and the request for Best and Final      Offers is hereby included by reference.  In addition, the      portions of Addenda 1 though 5 which modified language in the Contract      Documents have been incorporatedherein. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.  | Project      Description. |
|----------|---------------------------|

| 3. | Contractor’s      Duties and Responsibilities. |
|----|------------------------------------------------------|

----

|   | By:    | /s/ Timothy r. Rooney                                 |   | 12/24/08 |
|--------|--------|-------------------------------------------------------|--------|----------|
|   |   |            Timothy P. Rooney |   | Date     |
|   |   | Assistant      Chief Procurement Officer              |   |     |

|   | By:    | /s/ Domenic Gatto |   | 12/23/08 |
|--------|--------|-------------------|--------|----------|
|   |   | (Signature)       |   | Date     |

----

----

| ARTICLE      101 | DEFINITIONS |
|------------------|-------------|

| A. | The      following terms used in this Contract shall, except where, by the context,      it is clear that another meaning is intended, be construed as      follows: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | “Access-A-Ride”      or “AAR” shall mean New York City Transit Authority paratransit      service. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | 2. | “Accident”      shall mean an event causing property damage in excess of $1,000.00 or any      personal injury that occurs during the Contractor’s operation of any AAR      service. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | “Accident      Damage” shall mean any property damage caused as a result of an      Accident. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | 4. | “Addenda”      or “Addendum” shall mean the additional Contract provisions relating to      the Contract issued in writing by the Authority prior to the Award      Date. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | “Americans      with Disabilities Act of 1990” or “ADA” shall mean the Federal civil      rights legislation requiring, among other things, that paratransit service      comparable to fixed route service be provided to persons with disabilities      who meet ADA paratransit eligibilitycriteria. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | “ADEPT”      shall mean the automated reservation, scheduling and dispatch software      system presently used by the Authority to provide centralized AAR trip      reservation and scheduling. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | “Assistive      Device” shall mean devices used by physically disabled persons for      mobility and/or communication, such as canes, walkers, oxygen equipment,      etc. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | “Authority”      or “NYCT” or “NYC Transit” shall mean the New York City Transit Authority,      a public benefit corporation existing by virtue of the Public Authorities      Law, Title 9 of Article 5, and any other authority, board, body,      commission, official or officials to which or to whom the powers now      belonging to the said Authority with respect to the location,      construction, equipment, maintenance and operation of transit facilities      shall by virtue of any act or acts hereinafter passed or be held to      appertain. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | “Authorized      Fuel Usage” shall mean any fuel usage less than or equal to 1.5 gallons      for Vans and 1.15 gallons for Sedans per Vehicle Service    Hour. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10. | “Automatic      Vehicle Location and Monitoring” or “AVLM” shall mean a computerized      system that utilizes a global positioning system with mobile data      terminals to produce two-way wireless data communication concerning the      speed and directional movement of subject Vehicle(s) via dynamic, graphic      display screen at remote dispatch/control  location(s). |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11. | “Award      Date” shall mean the date the Notice of Award is  issued. |
|--|-----|-----------------------------------------------------------------------------------|

----

|  | 12. | “Borough”      shall mean one of the five (5) political jurisdictions (counties)      comprising the City of New York.  They are the Bronx, Brooklyn,      Manhattan, Queens and StatenIsland. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13. | “City”      shall mean the City of New York, according to its boundaries at the date      of this Contract. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------|

|  | 14. | “Command      Center” shall mean the Authority site for operating Access-A-Ride      reservations, scheduling and Customer assistance  functions. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 15. | “Contract,"      "Contract Documents" or "Agreement" shall mean the Attachments, Appendix,      Contract Testimonium, General Contract Provisions, Specific Contract      Provisions, Schedules deemed included (if any), Technical Specifications      (if any), Scope of Work, Forms of Bonds (if any), Contract Drawings (if      any), all Addenda hereafter issued (if any), and the Notice of      Award. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 16. | “Contractor”      shall mean the proposer to whom this Contract is awarded, its successors      and assignees.  For convenience the Contractor is hereinafter      referred to as if the Contractor were an individual.  The word      “he” shall, as the sense may require include “she,” “it” and “they;” the      word “him” shall include “her,” “it” and “them;” and the word “his” shall      include “her,” “its” and “their.” |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 17. | “Contractor      No Show” shall mean any instance that the Contractor does not arrive at      the Scheduled Pickup location during the Scheduled Pickup Window or when      the Contractor arrives at the Scheduled Pickup location more than      forty-five (45) minutes after the Scheduled Pickup Time, and the Customer      is not provided service. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 18. | “Customer”      shall mean an individual with disabilities who the Authority has      determined meets ADA paratransit eligibility criteria and has been issued      an AAR identification card, also known as or AAR    registrant. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 19. | "Customer      Assistance Division" shall mean a division of the Authority which provides      customer information and complaintmanagement. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | 20. | “Customer      No Show” shall mean the Customer has not presented him/herself, declines      the trip or is unable for any reason to take the trip when the Operator      has arrived and waited for the Customer in accordance with the      Contract. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 21. | “Deletion”      shall mean a Customer trip originally scheduled on the Manifest that is      subsequently cancelled. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------|

|  | 22. | "Directed,"      "required," "permitted," "ordered," "designated," "selected,"      "prescribed," or words of like import used in the specifications or upon      the drawings (if any) shall mean, respectively, the direction,      requirement, permission, order, designation, selection or prescription of      the Project Manager; and similarly the words "approved," "approved      manner," "approval," “acceptable," "satisfactory," "equal," "necessary,"      or words of like import shall mean, respectively, approved by, or      acceptable or satisfactory to, or equal, or necessary in the opinion of      the Project Manager. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 23. | “Dispatch”      shall mean the Contractor’s unit responsible for directing and monitoring      the Revenue Service, and communicating information to and between the      Operators and the Command Center. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 24. | “Dispatch      Liaison” shall mean a Contractor Dispatcher who shall be located at the      Command Center to coordinate Command Center personnel with Contractor      Dispatchers and Operators. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 25. | “Dispatcher”      shall mean the individual responsible for directing, monitoring and      communicating with Operators and coordinating with the Command      Center. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 26. | “Disputes      Resolution Officer” or “DRO” shall mean the Labor & Employee Relations      Officer, Department of Buses. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 27. | "DMV"      shall mean the New York State Department of Motor  Vehicles. |
|--|-----|-------------------------------------------------------------------------|

|  | 28. | “DOT”      shall mean the United States Department of  Transportation. |
|--|-----|------------------------------------------------------------------------------------|

|  | 29. | “Federal”      or words of like import shall mean the United States of      America. |
|--|-----|--------------------------------------------------------------------------------------------------|

|  | 30. | “FTA”      shall mean the Federal TransitAdministration. |
|--|-----|----------------------------------------------------------------------|

|  | 31. | “Guest”      shall mean any person accompanying an AAR Customer other than the Personal      Care Attendant. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------|

|  | 32. | “Holiday”      shall mean New Year’s Day, Martin Luther King Day, President’s Day,      Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas      Day. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 33. | “Incident”      shall mean any notable or newsworthy occurrence on the Vehicle or in      connection with AAR service other than an  Accident. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 34. | “Incumbent      Contractor” shall mean a primary carrier under Contract 00D7815A, B, C, D,      E, F, G and H or regional carrier under Contract 06D9374A, B, C, D, E and      F. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 35. | “Insertion”      shall mean a Customer trip assigned to a Route on the day of service that      was not originally scheduled on theManifest. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 36. | “Late      Pickup” shall mean any AAR pickup that occurs past the Scheduled Pickup      Window. |
|--|-----|-------------------------------------------------------------------------------------------------------------|

|  | 37. | “Law”      shall mean the Constitution and laws of the United States and of the State      of New York, the New York City Charter, the New York City Administrative      Code, and each and every other law, rule, regulation, requirement, order,      judgment, decree, or ordinance of every kind whatsoever issued by any      government entity, applicable to or affecting the Contract, the Work and      all persons engaged in the Work (including any of the foregoing which      concern health, safety, environmental protection, and      non-discrimination). |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 38. | “Legal      Proceeding” shall mean every action, litigation, arbitration,      administrative proceeding, and other legal or equitable proceeding of any      kind whatsoever. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 39. | “Liens”      shall mean any and every lien of any kind whatsoever against the Work,      against any monies due or to become due from the Authority to Contractor,      and/or against any other property of the Authority, for or on account of      the Work, including any PublicLien. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 40. | “Manifest”      shall mean the schedule provided to an Operator listing all stops and time      points during a Vehicle tour orRoute. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 41. | “Midnight      Fleet Verification Report” shall mean the Contractor’s list accounting for      the location, on or off the Contractor’s facility, of all Vehicles and      Non-Revenue Vehicles assigned to theContractor. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 42. | “MTA”      shall mean the Metropolitan Transportation Authority and any other board,      body,  commission, official or officials to which or to whom the      powers now belonging to the said Authority in respect to the planning,      financing, location, construction, equipment, maintenance and operation of      mass transportation facilities or the purchase of Rapid Transit cars under      the provisions of Article 5, Title 11 of the Public Authorities Law of the      State of New York shall, by virtue of any act or acts, hereafter pass or      be held to appertain. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 43. | “New      York State” shall mean the State of NewYork. |
|--|-----|--------------------------------------------------------------------|

|  | 44. | “NYS      DOT” shall mean the New York State Department of      Transportation. |
|--|-----|---------------------------------------------------------------------------------------------|

|  | 45. | “No-Fault/No-Show”      shall mean the Contractor arrives at the pickup location within thirty      (30) to forty-five (45) minutes past the Scheduled Pickup Time and the      Customer cannot be located. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 46. | “Non-Revenue      Vehicle” shall mean any vehicle used by the Contractor to      perform   Contract requirements other than Customer      transportation. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 47. | “Notice      of Award” shall mean a document that apprises the Contractor that this      Contract has been approved by theAuthority. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 48. | “Notice      to Proceed” shall mean a document that directs the Contractor to start      Work. |
|--|-----|------------------------------------------------------------------------------------------------------------|

|  | 49. | “On      Time Performance” shall mean a measure of service reliability based on the      percentage of completed trips in which the Contractor has picked up a      Customer within the Scheduled PickupWindow. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 50. | “Operator”      shall mean the Contractor’s employee who operates the    Vehicle. |
|--|-----|-----------------------------------------------------------------------------------------------------|

----

|  | 51. | “Original      Equipment Manufacturer” or “OEM” shall mean the manufacturer of any      specifically referenced equipment, component or unit in this      Contract. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 52. | “Paratransit      Division” shall mean the Authority division responsible for administration      and operation of AAR. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|  | 53. | “Passenger”      shall mean any Customer, Personal Care Attendant or Guest authorized to      travel on an AAR Vehicle. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|  | 54. | “Preventive      Maintenance” shall mean maintenance of the Vehicles and Non-Revenue      Vehicles described in the Scope of Work and Attachment 12 of this      Contract. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 55. | “Personal      Care Attendant” or “PCA” shall mean a person who is authorized or required      by the Authority to accompany the Customer for the purpose of providing      travel and other assistance to theCustomer. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 56. | “Post-Trip      Vehicle Inspection” shall mean the inspection of a Vehicle immediately      following completion of the Revenue Service  tour. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 57. | “Pre-Trip      Vehicle Inspection” shall mean inspection of a Revenue Vehicle immediately      preceding the Revenue Service tour. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 58. | “Project      Director” shall mean the individual designated by the Contractor to      administer this Contract or his duly authorized representative and any      successor or successors duly appointed or any deputy or substitute for him      who shall be appointed by theContractor. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 59. | “Project      Manager” shall mean the individual designated by the Authority to      administer this Contract or his duly authorized representative and any      successor or successors duly appointed or any deputy or substitute for him      who shall be appointed by theAuthority. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 60. | “Pull-In”      shall mean the return of a Vehicle to the Contractor’s facility upon      completion of a Revenue Servicetour. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 61. | “Pull-Out”      shall mean the departure of a Vehicle from the Contractor’s facility to      perform a Revenue Service tour. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 62. | “Revenue      Service” shall mean the period of time from authorized Pull-Out to      authorized Pull-In. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------|

|  | 63. | “Road      Call” shall mean the Contractor field response to a Vehicle operating      problem. |
|--|-----|------------------------------------------------------------------------------------------------------------|

|  | 64. | “Road      Supervisor” shall mean the Contractor’s employee responsible for providing      on road, planned and random observation and supervision of Operator      performance, Road Call response and Accident  investigation. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 65. | “Route”      shall mean a scheduled tour prescribed on a Manifest with a designated      Pull-Out and Pull-In time. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------|

|  | 66. | “Scheduled      Pickup Time” shall mean the pickup time as agreed upon by the Customer and      the Command Center that appears on theManifest. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 67. | “Scheduled      Pickup Window” shall mean the period from the Scheduled Pickup Time to      thirty (30) minutes after the Scheduled Pickup  Time. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 68. | “Sedan”      shall mean a four (4) door, Ford Crown Victoria, or comparable, with taxi      package. |
|--|-----|------------------------------------------------------------------------------------------------------------------|

|  | 69. | “Service      Hour” shall mean each hour of a RevenueService. |
|--|-----|---------------------------------------------------------------------------|

|  | 70. | “Service      Ready” shall mean that the Vehicle is clean, mechanically safe and      reliable, and all equipment isoperable. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | 71. | “State”      - See "New York State." |
|--|-----|--------------------------------------------------|

|  | 72. | “Subcontractor”      shall mean an individual or organization who enters into a Contract to      furnish labor or services only or labor and materials or apparatus in      connection with the Work directly or indirectly for or in behalf of the      Contractor and whether or not in privity of Contract with the      Contractor. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 73. | “Supplier”      shall mean an individual or organization that furnishes materials,      equipment or supplies to the Contractor either directly or indirectly, for      incorporation in the Work. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 74. | “Trip      Ticket” shall mean a document that includes the date of the trip, pickup      and destination locations, and the Trip ID  Number. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 75. | “Trip      ID Number” shall mean the individual number generated and assigned by      ADEPT to a scheduled trip. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | 76. | “Unauthorized      Fuel Usage” shall mean fuel usage exceeding 1.5 gallons for Vans and 1.15      gallons for Sedans per Vehicle ServiceHour. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 77. | “United      States Government” - See “Federal.” |
|--|-----|--------------------------------------------------------------------------|

|  | 78. | “Van”      shall mean a body-on-chassis Ford E-350 or comparable lift equipped      Vehicle with five (5) Passenger seats and two (2) wheelchair tie down      positions. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 79. | “Vehicle”      shall mean a Van or Sedan leased to the Contractor to perform Revenue      Service. |
|--|-----|----------------------------------------------------------------------------------------------------------------|

|  | 80. | “Vehicle      Service Hour” shall mean all the time from Pull-Out to Pull-In exclusive      of any excessive dead head. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 81. | “Work”      or “Project” shall be defined as all the required obligations of the      Contractor hereunder, including but not limited to, the performance of any      labor or services, the supplying of any goods or materials, the furnishing      or repair and/or remanufacture of any equipment or any other resources or      requirements or deliverables necessary to perform, construct, accomplish      and complete this Contract's objectives as stated in Article 102      below. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      102 | PROJECT      DESCRIPTION |
|------------------|--------------------------|

| ARTICLE      103 | TERM      OF CONTRACT |
|------------------|-----------------------|

| ARTICLE      104 | STANDARDS      OF PERFORMANCE |
|------------------|-------------------------------|

| A. | Contractor      shall complete all Work assigned hereunder within the period of time      specified by the Contract, and in accordance with the requirements for      performance as set forth in the Scope of Work and in this      Article.  The requirements set forth in this Article are      material provisions of the Contract and a breach thereof may result in the      assessment of liquidated damages or deduction of performance credits as      set forth in Article 108 or in the Authority availing itself of any other      remedy existing herein, including termination, or any such remedy as may      exist in law or equity. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contractor shall be responsible for service quality, Vehicles and Operator      availability, and coordination of all services furnished under this      Contract. The Contractor is responsible to perform safe, reliable and on      time transportation service in a customer friendly manner as such      performance is defined by this Contract and shall adhere to the following      minimum standards: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a. | Contractor      No Shows are prohibited except when due to circumstances beyond the      control of the Contractor, as determined by the Project      Manager. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | b. | The      Authority reserves the right to declare a Contractor No Show or      No-Fault/No-Show, as applicable, for pickup(s) where, based upon the      circumstances, the Authority determines that the Contractor will be unable      to appear at the designated location within forty-five (45) minutes after      the Scheduled Pickup Time. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | In      addition to any other remedies provided elsewhere in this Contract,      Contractor shall reimburse the Authority for the actual cost of any      reasonable expense incurred by the Customer or the Authority to perform      the trip independently of the Contractor.  Such reimbursement      will apply when the Customer has called the Authority and the Authority      either dispatches another service provider to perform the trip, or      authorizes the Customer to use a taxi or livery for the    trip. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | On      Time Performance |
|--|----|--------------------------|

|  | 3. | Vehicle      Availability |
|--|----|---------------------------|

|  | 4. | Vehicle      Operator Availability |
|--|----|------------------------------------|

|  | a. | The      Contractor shall assure that there are sufficient numbers of Operators      available to service each Route assigned to the Contractor. To meet this      performance standard, the Contractor shall implement the qualification and      training requirements for Operators set forth in the Scope of Work,      Attachment No. 1, prior to placement of Operators in Revenue Service; and      the Contractor shall timely hire and train individuals in sufficient      numbers to meet the Operator availability standard set forth      herein.  In the event that the Authority determines that an      Operator in Revenue Service does not meet the qualifications or has not      completed the required training, the Project Manager may direct that the      Operator be removed from service until such time as the Authority is      satisfied that the requirements of the Contract have been    met. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | b. | The      Contractor shall observe each Operator to ensure that he is fit for duty      before his Vehicle Pull-Out, and monitor each Operator’s continued fitness      throughout the Revenue Service. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | The      Contractor shall implement a program for retraining and/or disciplining      Operators who fail to perform their duties in accordance with Contract      requirements.  All activity pertaining to such program shall be      fully documented and all documentation maintained and available to the      Authority. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | The      Contractor shall not assign an Operator to operate a Vehicle after      notification by the Authority to the Contractor that the Operator is to be      removed pursuant to a removal determination as set forth in the Scope of      Work, Attachment 1, Section IX, B. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Safe      Conduct: The Contractor shall implement a safety program in accordance      with the requirements of this Contract to prevent conduct or actions by      Operators or other field staff which creates a safety hazard to Customers      or the public.  Such safety program shall incorporate provisions      for the retraining and/or discipline of Operators as appropriate by the      Contractor and the full documentationthereof. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Signed      Trip Tickets: All Trip Tickets shall be handled in the manner specified in      the Scope of Work. |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | 7. | Accidents/Incidents: |
|--------|----|----------------------|

|   | a. | Reporting:  The      Contractor shall provide a verbal report to the Authority Project Manager      or duly authorized representative within one hour of any Accident or      Incident involving injury to a Customer, Contractor employee or any other      person or where property damage is in excess of $1,000.00.  A      written report to follow the verbal report is required within twenty-four      (24) hours.  All other Incidents are to be reported verbally      within one (1) hour and in writing within twenty-four (24) hours of the      event. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Repairs:  The      Contractor shall repair all damage to Vehicles within thirty (30) calendar      days. |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|   | 8. | Heating      and Air Conditioning:  The Contractor shall properly maintain      operating heating and air conditioning systems on all      Vehicles.  No Vehicle shall be operated in Revenue Service for      longer than one (1) day without properly functioning heating or air      conditioning systems as described in the Scope of  Work. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Cleanliness      of Vehicles:  The Contractor shall be responsible for      maintaining the appearance and cleanliness of all Vehicles.  The      Contractor shall implement and maintain a regular schedule of Vehicle      washing as follows: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Vehicle      Exteriors:  Vehicles shall be washed at least twice each week to      maintain a clean exterior appearance.  Clean is defined as no      visible dirt buildup from a distance of twenty-five (25)      feet.  In the event of inclement weather, the Contractor may      suspend Vehicle washing for up to twenty-four (24) hours after the end of      the inclement weather, at which time the Contractor shall resume Vehicle      washing. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | Vehicle      Interiors:  At a minimum, interiors shall be swept, trash      emptied and cleaned daily; fully mopped, windows cleaned and driver's area      cleaned once a week; and fully cleaned throughout once a      month. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10. | Recordkeeping:      The Contractor shall accurately keep, complete, and/or submit billing and      other required paperwork within the time periods specified in the Scope of      Work. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11. | Unauthorized      Use of Vehicles: The Contractor shall not use any Vehicles or Non-Revenue      Vehicles for any purpose other than that described in the Scope of Work or      otherwise directly authorized in writing by the Authority.  No      Authority-leased vehicles shall be takenhome. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12. | Force      Majeure: A Contractor’s failure to meet the standards of performance set      forth in this Article 104 may be excused when the failure is caused by      forces beyond the control of the Contractor, as determined by the Project      Manager.  The Authority has established a set of “mitigation      codes” which the Contractor is authorized to use, as applicable subject to      Project Manager approval, in its performance of Trip Reconciliation as      described in the Scope of Work, Attachment No. 1, Section II,      E. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      105 | NOT      USED |
|------------------|---------------|

| ARTICLE      106 | LIQUIDATED      DAMAGES |
|------------------|-------------------------|

| A. | In      the event of a delay in delivery of any Work under this Contract beyond      the times as set forth in Article 104 B or beyond the period to which such      time may be extended by the Authority as herein provided, the Authority      shall be paid damages for such delay. In as much as the amount of such      damages and the loss to the Authority will be extremely difficult to      ascertain, it is hereby expressly agreed that such damages will be      liquidated and paid as follows: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Late      Trips:  A Late Trip is any trip performed by the Contractor      picks up a customer after the Scheduled Pickup Window.  In any      month in which the Contractor fails to achieve 92% On Time Performance,      the Contractor shall pay the Authority the sum of $10.00 for each trip      that occurred fifteen (15) minutes or more past the Scheduled Pickup      Window. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Start      Up of Service:  If the Contractor fails to put a Vehicle, other      than spare Vehicles, into service within the time specified in Article      104, the Contractor shall pay the Authority the sum of $100.00 per missed      Route per Vehicle not in service. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      parties agree that the damages that the Authority will suffer by reason of      such failure to comply are not a penalty.  The Authority shall      have the right to deduct such liquidated damage assessments from any      monies due or which may thereafter become due to the Contractor under this      Contract; and in case the amount which may become due hereunder shall be      less than liquidated damages due to the Authority, the Contractor shall      pay the difference upon demand by theAuthority. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | The      Authority will closely monitor performance of this Work.  The      Authority has the right to enter the Contractor’s premises at any time      without advance notice to or authorization from the Contractor in order to      observe the Contractor’s operations.  Monitoring methods that      will be used to assess the Contractor's performance include, but are not      limited to, radio monitoring, telephone monitoring and recording, on      street service monitoring and random facility and Vehicle records      inspections. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Should      the Contractor wish to contest all or part of an assessment of liquidated      damages or credits for performance, it shall, within ten (10) business      days from the date of such notice, respond in writing to the Project      Manager stating the reasons why such assessment is in error. The Project      Manager may affirm, modify, or withdraw the assessment, as he deems      appropriate.  If the Contractor fails to contest a notice of      assessment of liquidated damages within ten (10) business days from the      date of such notice, the assessment becomes final and binding upon the      Contractor without further notice from the  Authority. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      107 | SUSPENSION      OF PERFORMANCE |
|------------------|--------------------------------|

| A. | The      Authority may at any time, and without cause, direct the Contractor to      stop Work under this Contract for a period of time.  Such      direction shall be given by notice in writing, which shall specify the      period during which Work shall be stopped.  The Contractor shall      resume Work upon the date specified in such direction, or upon such other      date as the Authority may thereafter specify in writing.  The      period during which Work shall have been stopped may be deemed added to      the Contract term at the sole discretion of the      Authority.  Stoppage of Work under this Article shall not give      rise to any claim against theAuthority. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Authority reserves the right of temporarily suspending the performance of      the whole or any part of the Work, if it shall deem it in its best      interest so to do, without compensation to the Contractor for such      suspension other than extending the time for completing the Work as much      as in the opinion of the Authority the Contractor may have been delayed by      such suspension. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      108 | CREDITS      FOR PERFORMANCE DEFICIENCY |
|------------------|-----------------------------------------|

| A. | The      Authority intends to monitor performance on this Contract      closely.  Techniques that will be used to assess the      Contractor's performance include, but are not limited to, on street      service monitoring and random facility and Vehicle      inspections.  The Contractor shall recognize that strict      adherence to the Contract terms and conditions in providing clean, safe,      reliable, Customer friendly effective service to the elderly and disabled      community is of paramount importance to the Authority and is the basis      upon which the Authority has agreed to the Contract price for the      Work.  Accordingly, performance deficiencies on the part of the      Contractor shall result in the Authority taking a credit in the applicable      amount specified below against monies otherwise due the Contractor      (“Credit for Performance Deficiency”) as  follows: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1.  | Contractor      No Show: |
|--|----------|--------------------------|

----

|   | 2. | Removal      of Vehicle Operators: |
|--------|----|------------------------------------|

|   | In      the event that the Contractor fails to remove an Operator from Revenue      Service as directed by the Authority, the Authority shall be entitled to a      Credit for Performance Deficiency of $250.00 per Operator per calendar      day. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Accident      Reporting: |
|--------|----|--------------------------|

|   | If      the Contractor fails to report an Accident within the required time      period, the Authority shall be entitled to a Credit for Performance      Deficiency of $25.00 per Accident, per calendar day the report is      late. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Unsafe      Conduct: |
|--------|----|----------------------|

|   | If      the Contractor’s performance includes any conduct or unsafe action, which      creates a safety hazard, the Authority shall be entitled to a Credit for      Performance Deficiency of $250.00 perincident. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5.  | Quality      of Customer Service: |
|--|----------|-----------------------------------|

|  | 6. | Late/Failed      Pull-Outs: |
|--|----|-----------------------------|

----

|  | 7. | Customer      Liaison Coverage: |
|--|----|---------------------------------|

| B. | The      Authority shall have the right to deduct such Credits for Performance      Deficiencies from any monies due or which may thereafter become due to the      Contractor under this Contract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      109 | INCENTIVES |
|------------------|------------|

| A. | In      any month in which the Contractor exceeds 95% On Time Performance, the      Contractor will be paid an incentive payment of ten (10) cents per      completed trip for all completed trips for the  month. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | In      any month in which the Contractor’s No Shows are less than 0.2% of all      trips assigned to the Contractor, the Contractor will be paid an incentive      payment of ten (10) cents per completed trip for all completed trips for      the month. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | A      Contractor is eligible for the incentive payments set forth herein only      upon approval by the Authority of an incentive sharing plan whereby at      least half of the incentive payments received by the Contractor is shared      with Operators, Dispatchers and/or maintenance personnel whose performance      assisted the Contractor in earning the  incentive. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      110 | PRICE      TO INCLUDE/INVOICES AND PAYMENTS |
|------------------|---------------------------------------------|

| A. | Price      to Include:  The Authority shall pay and the Contractor shall      accept the amounts set forth in the Price Schedule, Attachment No. 2, as      full compensation for all costs and expenses of completing the Work in      accordance with the Contract, including, but not limited to, all labor and      material required to be done or furnished under this Contract; all      overhead, expenses, fees and profits including the cost of providing      storage yard or facilities; all risks and obligations set forth in the      Contract; any applicable fees or taxes; and all expenses due to any      unforeseen difficulty encountered in the prosecution of the Work      (collectively referred to as “the Contract  Price”). |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Payments:  Subject      to the Contractor's compliance with the submission requirements contained      hereunder and all other provisions of the Contract Documents, payment will      be made at the rates specified in the Price Schedule, Attachment 2, as      follows: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.      Mobilization |
|--------|----------------------|

----

|  | a. | Per-Vehicle      Mobilization Costs.  The Authority shall pay the Contractor the      one (1) time “Per-Vehicle Mobilization Costs,” Price Schedule, Line      Item(s) 2, for each Vehicle, if any, that the Authority assigns to the      Contractor during the billing month. Incumbent Contractors are not      eligible for this payment in the event that the Authority assigns them the      same number or fewer Vehicles. Incumbent Contractors shall be paid in      accordance with the Price Schedule for Vehicles in excess of the initial      award. Incumbent Contractors are eligible for this payment, in the event      they are assigned additional Vehicles for expansion. This payment is not      applicable to replacementVehicles. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | Non-Vehicle      Mobilization Costs.The      Authority shall pay the Contractor's “Non-Vehicle Mobilization” costs upon      submission of an invoice and adequate documentation to confirm that the      Contractor has incurred such costs.  In no event shall the      Contractor be paid for any amount expended that is in excess of the total      amount specified in the Price Schedule, Line Item 1, “Non-Vehicle      Mobilization” costs.  The Contractor shall allocate its      expenditures for mobilization costs in accordance with its Authority      approved start up plan and in a manner to assure that sufficient monies      are available to pay all mobilization costs.  The      Authority’s Project Manager may question and reject any mobilization cost      if it appears that the expenditure will adversely affect the Contractor’s      ability to effect mobilization. During the term of      the Contract, the Contractor is prohibited from disposing of any equipment      purchased with Authority funds the cost of which was $1,000.00 or greater      without prior written approval of the Project Manager. In the event of      termination of this Contract at any time prior to its expiration, any      equipment previously purchased with Authority funds, and valued by the      Project Manager at $1,000.00 or greater at the time of termination shall      be delivered to the Authority uponrequest. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | At      the determination of the Project Manager, the Contractor may be allowed or      directed to replace computer equipment, faxes and copiers during the term      of the Contract. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Fixed      Costs - Commencing in the first month of Revenue Service, on a monthly      basis, the Authority shall pay the following “Fixed  Costs”: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Non-Vehicle      Fixed Costs - One-twelfth (1/12) of the total annual Non-Vehicle Fixed      Cost amount stated in the Price Schedule, Line Item(s) 5. For the first      month in which Service begins and the month in which the Contract expires      or is terminated, the payment will be prorated based on the actual number      of days in service divided by the total number of days in that      month. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Per      Vehicle Fixed Costs - One-twelfth (1/12) of the total annual Per-Vehicle      Fixed Costs rate specified in the Price Schedule, Line Item(s) 6, for each      Vehicle in the Contractor’s active fleet on the last day of the billing      month. For any Vehicle assigned to an additional route, the Contractor      shall not be paid until such route is fielded. Payments for ramp-up or      expansion Vehicles that are not in Revenue Service for the full month will      be prorated based on the actual number of days in service divided by the      total number of days in that month.  The Non-Revenue Vehicle      associated costs shall be part of the Per-Vehicle Fixed costs. These costs      include registration, maintenance, NYS DMV inspections, decaling, tolls,      fuel and insurance.  For Non-Revenue Vehicles, the Contractor      will be paid based on the number and general type of automobiles in their      active Non-Revenue fleet at the end of the billing  month. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | c. | The      Contractor may shift funds as necessary among items in the Fixed Costs      category to meet operational needs, so long as the services required      hereunder are in no way diminished and Contractor can justify the action      upon request by the Authority or upon audit.  This paragraph      shall not be construed to permit the Contractor to exceed the total annual      allowable Fixed Costs. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | The      Authority may adjust the Fixed Costs if it is determined that the      Contractor has not provided the services related  thereto. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | In      the event that Contractor moves to a different facility than the one whose      costs were included in the total annual Non-Vehicle Fixed Cost amount      stated in the Price Schedule, Line Item 5 the Authority shall adjust the      Non-Vehicle Fixed Cost amount to reflect the rental or acquisition costs      to the Contractor for the different facility up to the original      acquisition or rental amount included in the total annual Non-Vehicle      Fixed Costs, but in no event to exceed such  amount. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Vehicle      Service Hour - The Authority shall pay the Contractor each month for the      actual number of Vehicle Service Hours as reconciled by the Contractor and      approved by the Authority at the rate specified in the Price      Schedule. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Maintenance      Costs - One-twelfth (1/12) of the Maintenance Costs specified in the Price      Schedule, Line Item(s) 7 or 8, as applicable, based upon the actual number      and category of Vehicles in the Contractor’s active fleet. For any Vehicle      assigned for the purpose of fielding an additional route, Contractor shall      not be paid until such route is fielded. Any newly assigned or      decommissioned Vehicle which is part of a Contractor’s active fleet for a      partial month will be prorated for that month. Newly assigned or      decommissioned Vehicles that are not in Revenue Service for the full month      will be prorated based on the actual number of days in service divided by      the total number of days in that month. All Vehicles will be assigned to a      maintenance category based on that Vehicle’s mileage as of that Vehicle’s      Revenue Service start date. On the first day of the seventh full calendar      month of Revenue Service, the fleet will be adjusted to reflect the then      appropriate maintenance categories. This will occur every six (6) months      thereafter. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Consumer      Price Index (CPI) |
|--------|----|---------------------------------|

|   | a. | Effective      for the billing of the first full month of year two following the      commencement of Revenue Service (as described in the Scope of Work,      Attachment 1, Section III), Fixed Costs, Vehicle Service Hour Cost, Per      Vehicle Mobilization, if any, Non-Vehicle Mobilization for Expansion, if      any, and Maintenance costs will be adjusted annually in accordance with      Table 10 of the Consumer Price Index for All Urban Consumers (CPI-U) using      the selected local area of New York – Northern NJ – Long Island,      NY-NJ-CT-PA.  It is the Contractor’s obligation to submit for      the first full month in which an adjustment is available and invoice in an      amount that accurately reflects the adjustment, if any, that is      due.  Absent such invoice, it shall be within the Authority’s      discretion whether to adjust Fixed Costs for that Contract      year. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | At      the discretion of the Authority, Contractors currently providing      paratransit services on behalf of the Authority pursuant to Contract No.      06D9374 that are awarded a Contract hereunder may be required to continue      to provide such services under Contract No. 06D9374 for all or part of the      term thereunder.  If this occurs, the CPI adjustment set forth      in Article 110.B.5.a will be made to such Contractor’s Price Schedule      under this Contract upon the commencement of Mobilization following the      Notice to Proceed under this Contract, retroactive to January 31,      2009.  All subsequent CPI adjustments will be made in accordance      to Article 110.B.5. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The      Contractor warrants that the costs set forth in the Price Schedule are in      current U.S. dollars and do not include any allowance for any contingency      to cover anticipated increased cost of performance, which are covered by      the economic adjustment clauses contained in paragraph 5.a.,      above.  These provisions shall be the sole and exclusive measure      of adjustment to the costs specified in the Price Schedule of this      Contract without regard to actual changes in the cost or use of labor or      materials over the term of theContract. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | At      the discretion of the Authority, the Contractor shall establish a      dedicated on-site fuel tank and/or a Contractor-Provided Fuel Card      Program, or administer an Authority-Provided Fuel Card Program subject to      the approval of the Project Manager.  A combination of on-site      fueling and fleet fuel card will only be considered where Contractors are      assigned a mixed fleet of gasoline and diesel Vehicles and only one type      of fuel tank is available at the Contractor’s facility. The cost for all      fuel used in Vehicles for Revenue Service, excluding charges for any taxes      which the Authority is exempt, will be paid by the    Authority. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Any      fuel usage exceeding a ratio of 1.5 gallons for Vans and 1.15 gallons for      Sedans per Vehicle Service Hour (the Authorized Fuel Usage) shall be      presumed by the Authority to be unauthorized fuel usage (the Unauthorized      Fuel Usage).   The cost of Unauthorized Fuel Usage attributable      to the Contractor will be deducted on a monthly basis from the Authority’s      payment to the Contractor (Usage Deduction).  For the purposes of all      calculations, deductions and credits, gasoline and diesel will be handled      separately. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | In      the event there is Unauthorized Fuel Usage, the monthly payment to the      Contractor shall be reduced by an amount equal to the number of gallons      used by the Contractor which exceeds its Authorized Fuel Usage (i.e.,      Unauthorized Fuel Use) for the month as multiplied by the average fuel      cost per gallon for such month. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d. | Savings      in fuel costs resulting from the Contractor operating under its Authorized      Fuel Usage (“Economic Fuel Usage”) will be accrued to the Contractor on an      annual basis.  If any monthly deductions for Unauthorized Fuel      Usage occurred, an annual review of the Contractor’s fuel usage for that      period will be performed.  The first review period will end on      the completion of the first full calendar month after the anniversary of      the Revenue Service start date and will be performed thereafter      annually.  The Contractor's total fuel usage shall be compared      against the Contractor’s total Authorized Fuel Usage for the period under      review. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | If      for the annual review period, the Contractor is found to have an Economic      Fuel Usage for which the total gallons used is less than the total gallons      authorized for the review period, the Contractor may seek a credit equal      to the number of gallons used in the total period’s Usage Deduction      multiplied by the average price per gallon for the review      period. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | If      for the annual review period, the Contractor is found to have a total      Unauthorized Fuel Usage that is less than the sum total of all monthly      Unauthorized Fuel Usage during the review period, the Contractor may seek      a partial credit equal to the difference in gallons between the two      multiplied by the average price per gallon for the review      period. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | In      no event shall the dollar value of any partial credit and any prior      credits for fuel costs during the subject year exceed the total      unreimbursed Fuel Costs during suchyear. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | The      Authority will specify the type of fuel to be  provided. |
|--------|----|-------------------------------------------------------------------|

|  | 7.  | Reimbursable      Costs (Pass Through Costs) |
|--|----------|----------------------------------------------|

|   | a. | Contractor      Provided Fuel Card: |
|--------|----|-------------------------------------|

|  | i. | Each      monthly payment to the Contractor shall be reduced by an amount equal to      the number of gallons used by the Contractor which exceeds its Authorized      Fuel Usage (i.e., Unauthorized Fuel Use) for the month multiplied by the      average fuel cost per gallon invoiced by the Contractor for such      month. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | On      a monthly basis, the Authority shall reimburse the Contractor’s actual      Authorized Fuel Usage costs, exclusive of any taxes charged for which the      Authority is exempt. The Authority will pay the Contractor for any taxes      which the Authority is not exempt. The Contractor shall provide the fuel      card invoice.  The Contractor shall maintain detailed reports of      the card usage that shall, at a minimum provide the date, time of fueling,      price per gallon, any discount provided, number of gallons, vehicle      number, total monthly gallons used and total cost.  Upon the      request of the Project Manager, the Contractor shall provide these      reports. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | iii. | In      the event the Contractor receives any notice of a denial of its claim for      a fuel tax refund, the Contractor shall immediately inform the      Authority.  Further, in such event the Contractor shall not take      any action (e.g., waive its right to have the IRS or NYS Department of      Taxation further consider its claim) which might impair its opportunity      (or the Authority's ability) to dispute (without bringing suit) the denial      of its claim. If the Contractor fails to abide by these requirements, the      Authority shall have no obligation to pay the Contractor the amount of the      fuel taxes in issue. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | On      Site Bulk Delivery by AuthoritySuppliers: |
|--------|----|---------------------------------------------------|

|  |   | No      payment to the Contractor for bulk delivered fuel will be made. The      Authority will designate and make payments to the bulk fuel provider      directly. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c.  | Tolls |
|--|----------|-------|

|  | d.  | Registration |
|--|----------|--------------|

|  | e.  | Fares |
|--|----------|-------|

|  | f.  | Insurance      Costs |
|--|----------|----------------------|

|  | i. | No      more frequently than once monthly, the Authority will pay the insurance      premium costs paid by the Contractor for the contractually required      comprehensive collision insurance.  Additionally, the Authority      will pay actual premium costs for all required and permitted automobile      insurance coverage, as well as premium financing costs, if the Project      Manager expressly authorizes the Contractor to finance any or all premium      costs.  The total annual payment for all such costs shall not      exceed the amount stated for auto insurance reimbursable costs or any item      that has not been approved by the Authority prior to the Contractor having      entered into a legal commitment for the expenditure.  In the      event that the Contractor's fleet is reduced, rebates on premiums and      financing charges, if applicable, shall be obtained by the Contractor and      refunded to theAuthority. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | ii. | On      an annual basis the scheduled reimbursable amount will be adjusted by the      Authority to reflect the Contractor’s actual insurance premium costs for      the upcoming insurance coverage year.  Each year, upon the      Contractor’s receipt of any renewal notice for insurance coverage to be      paid as a reimbursable cost by the Authority, the Contractor shall submit      a copy of such notice and all requested documentation to the Authority      including policy declaration pages, premium notices and/or invoices from      the Contractor’s insurance company itemizing the premiums and      corresponding insurance coverage to be provided.  Deductible      rates established with applicable insurance coverage at the time of policy      issuance shall remain as proposed by the  Contractor. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | iii. | The      Authority, in its sole discretion, may, at the commencement of the      Contract or at any time thereafter, purchase Vehicle insurance for the      Work.  In such event, the Contract will be modified to eliminate      such insurance costs from the ContractPrice. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | iv. | The      Authority will pay actual premium costs for Garage Keepers Liability      or   collision coverage and associated premium financing      costs if the Project Manager expressly authorizes such    costs. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | g. | Computers      and Peripherals |
|--|----|--------------------------------|

| C. | Proper      Invoice: |
|----|----------------------|

|   | 1. | In      order to allow appropriate time to complete the reconciliation process,      the Contractor shall not submit any invoice prior to fifteen (15) calendar      days after the end of each month that constitutes the billing      period.  In addition to any other requirement set forth in this      Contract with respect to what constitutes a proper invoice or for the      Contractor to be entitled to receive payment, the Contractor's invoice, in      triplicate, shall set forth (1) a description, with specificity, of the      goods delivered, Work performed, services rendered, or other event      initiating entitlement to payment pursuant to the terms of this Contract;      (2) that portion of the Contract price related to such payment less any      deductions such as retainage required pursuant to the terms hereof (if      any); and (3) the Contract number.  Should the invoice not be      calculated correctly, such as not taking into account retainage as a      deduction, the Authority may either reject the invoice or treat the      invoice as proper only to the extent of the correct calculation of the      amount thereof. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2. | The      Authority will return incomplete or improper invoices to the Contractor.      The imposition of net thirty (30) calendar days for the Authority to make      payment will not begin until a complete and proper invoice is returned to      the Authority. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      Contractor shall provide a monthly bill itemized by the components of the      Contract Price in paragraph B, above,  “Payments.” |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Supporting      Documentation - The following are in addition to any other requirement set      forth in this Contract with respect to supporting documentation that shall      accompany an invoice: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The      Contractor's invoice shall be accompanied by appropriate documentation      that the deliverable has been delivered in accordance with the Contract,      and if this Contract requires acceptance thereof as a condition precedent      to payment, that the deliverable has been so  accepted. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | All      invoices for Vehicle Service Hours shall be supported by complete and      adequate documentation sufficient to permit the Authority to confirm that      the Vehicle Service Hours wereprovided. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | All      invoices for Vehicle insurance costs shall be accompanied by a copy of the      original invoice from the insurance company and a copy of the Contractor’s      check for payment, and any other supporting documentation that the      Authority directs.  Quarterly insurance premium for collision,      fire, theft and vandalism and, on an optional basis, glass, at the actual      amount invoiced by the insurance carrier payable upon submission of the      invoice and copy of payment made. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Invoices      shall also be accompanied by all affidavits and other records, as      applicable, including EZ-Pass billing records in disk form and with their      supporting documentation, and other records provided for or required by      the Contract to establish the amount of payment and/or performance of the      Work billed, as well as a statement with sufficient specificity which      establishes the basis on which the payment is due according to the      Contract.  Any documentation generated by the Authority, such as      certificate of acceptance, will be issued in accordance with the terms of      the Contract. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | A      sworn certificate or equivalent document signed by a knowledgeable officer      of the Contractor that the services covered by the Contract have been      performed for the period covered by the invoice.  Any false      certification shall render the invoice void, and the Authority shall be      entitled to recover immediately any monies paid on such      invoices. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | All      bills for fuel shall be accompanied by copies of the monthly invoice      received by the Contractor from its fuel provider and the check(s) to pay      such invoices. Contractor shall ensure that all fuel invoices from its      fuel provider clearly delineate the type and amount of taxes      charged. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| D. | Inspection,      Review and Audit: In addition to any other requirements pertaining to the      right of the Authority or other entity to perform inspections, reviews or      audits with respect to any payment or to the Contract as a whole, the      Authority reserves the right to inspect, review and/or audit each invoice      for payment to verify that the invoice amount is consistent with the      materials, labor, goods, and/or services provided and is in accordance      with the provisions of the Contract, as well as to determine the resources      applied or used by the Contractor in fulfilling the terms of the Contract      or otherwise to verify that the Work, goods or services billed for were      provided in accordance therewith.  The Authority will require      ten (10) Authority business days from the Receipt of Invoice Date within      which to perform this function. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Set-off:  The      Authority shall have the right to set-off against any payment due the      Contractor under this Contract any unpaid legally enforceable debt owed by      the Contractor to the Authority as outlined in Authority's Prompt Payment      Rules (21 NYCRR §1002). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | Liquidated      damages as well as monies equal to the fare revenue that should have been      collected, calculated as the number of Customer and Guest trips performed      times the then applicable fare, shall be deducted by the Authority from      the payments made to the Contractor eachmonth. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | Designated      Payment Office: The Designated Payment Office, to which all invoices and      supporting documentation are required to be submitted under this Contract,      are as follows: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1. | Original      and one (1) copy of all invoicesto: |
|--|----|---------------------------------------------------|

|  | 2. | In      addition, one (1) copy of all invoices to the designated Project Manager      for this Contract at his or her mailingaddress: |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------|

| H. | Conditions      Precedent to Payment: Unless otherwise stipulated in writing by the      parties, the Authority shall make payment subject to the following      conditions, which are, unless waived in whole or in part by the Authority      in writing, conditions precedent topayment: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Contractor is not, in the Project Manager’s opinion, in breach of any      terms or provision of thisContract; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Project Manager has accepted theWork; |
|--------|----|------------------------------------------------|

----

|   | 3. | All      records required to be submitted to the Authority have been received by      the Authority, unless the Project Manager has, in writing, granted an      extension of time. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| I. | Withholding      Payment: The Authority may withhold sums equal to any claims of the      Authority against the Contractor, for indemnification, pending settlement      or other disposition of such claim.  The Authority may withhold      from any payment otherwise due the Contractor as much as may be necessary      to protect the Authority and if it so elects may also withhold any amounts      due from the Contractor to any Subcontractors or Suppliers for work      performed or material furnished by them.  The foregoing      provisions shall be construed solely for the benefit of the Authority and      will not require the Authority to determine or adjust any claims or      disputes between the Contractor and his Subcontractors or Suppliers, or to      withhold any monies for their protection unless the Authority elects to do      so.  The failure or refusal of the Authority to withhold any      monies from the Contractor shall in no way impair the obligations of any      surety or sureties under any bond or bonds furnished under this      Contract.  The Authority may withhold payment to the Contractor,      if the Contractor fails to remedy unsuitable conditions.  The      Contractor shall be given written notice of any unsuitable      conditions. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| J. | Prompt      Payment Rules and Regulations - The Authority will pay proper invoices      within the time periods provided in the Prompt Payment Rules and      Regulations.  Payment will be deemed to have been made upon      being mailed by the Authority. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| K. | Final      Payment - After the expiration of the Contract, or its termination, the      Contractor shall submit an invoice marked "Invoice for Final Payment"      covering all items not previously invoiced.  This "Invoice for      Final Payment" shall contain or be accompanied by the information or      supporting documentation, and shall otherwise be in the form, described in      this Article or elsewhere in this Contract.  Any dispute over      the proper amount of the final payment is subject to the dispute      resolution provisions (Article 212) of this  Contract. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| L. | Audit      and Adjustment: All payments are subject to audit and adjustment by the      Authority.  Contractor shall make its records available for      three (3) years after the letter of termination of or final payment under      this Agreement. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| M. | Retainage:      The Authority will retain an amount equal to 5% of each monthly payment      for the first year of the Contract.  In each subsequent month,      the Authority will retain an amount equal to 5% of each monthly payment      minus an amount equal to the average of monthly retainages for the prior      Contract years.  Such retained monies shall be held as security      for the full and faithful performance by the Contractor of all the      conditions, covenants and requirements contained in this Agreement.      Pass-Through items identified in Item 4 of the Price Schedule will be      excluded from retainage. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      111 | DRUG      AND ALCOHOL TESTING |
|------------------|-------------------------------|

| A. | A      portion of the Work to be performed by the Contractor falls within the      definition of “Safety Sensitive” as that term is defined by FTA      Regulations, 49 CFR Part 655.  Therefore, the Contractor is      required to establish a substance abuse testing program in compliance with      FTA Regulations, 49 CFR Part 40.  These requirements are further      described in SCHEDULE X,      FEDERAL DRUG AND      ALCOHOL TESTING REQUIREMENTS, Attachment 8  hereto. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| B. | In      addition, the Contractor agrees to maintain a Drug and Alcohol program      that adheres to a “Zero-Tolerance” policy, meaning that the Contractor      shall immediately and permanently remove any employee testing positive for      drugs or alcohol (or refusing to submit to testing) from performing      any  safety-sensitive function under this    Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      112 | PRIVACY      ACT |
|------------------|------------------|

| A. | The      Contractor agrees to comply with, and assures the compliance of its      employees with, the information restrictions and other applicable      requirements of the Privacy Act of 1974, 5 USC §552a.  Among      other things, the Contractor agrees to obtain the express consent of the      Federal Government before the Contractor or its employees operate a system      of records on behalf of the Federal Government.  The Contractor      understands that the requirements of the Privacy Act, including the civil      and criminal penalties for violation of that Act, apply to those      individuals involved, and that failure to comply with the terms of the      Privacy Act may result in termination of the  Contract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contractor also agrees to include the requirements of this Article in all      subcontracts to administer any system of records on behalf of the Federal      Government issued pursuant to thisContract. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      113 | VEHICLE      LEASES |
|------------------|---------------------|

| ARTICLE      114 | PROSECUTION      OF THE WORK |
|------------------|------------------------------|

| A. | During      the prosecution of the Work, should unforeseen difficulties of any nature      be encountered, the Contractor shall promptly notify the Project Manager      and take every necessary or proper precaution to overcome the unforeseen      difficulty according to the direction of the Project Manager and as      provided in these ContractDocuments. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | All      goods and workmanship shall be of the best class in every respect, and the      Project Manager shall be the sole judge of quality and      efficiency. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | In      all operations connected with the Work, the Contractor shall comply with      applicable local laws and ordinances of the City of New York, and all laws      of the State of New York which control or limit in any way the actions of      those engaged in the Work, or affecting the Work belonging to or used by      them, shall be strictly complied with, and further, the Contractor shall      comply with all applicable Federal, State and City regulations regarding      the transportation of Customers and other  passengers. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| D. | The      Contractor shall employ only competent, skillful, and faithful personnel      to do the Work. |
|----|--------------------------------------------------------------------------------------------------------|

| E. | The      Contractor hereby represents that prior to submitting his proposal, he      examined the Scope of Work in detail and satisfied himself as to the      intent of the Scope of Work relating to the Work to be performed, and he      shall not at any time make any claim for damages or extension of time, or      any other demand because of any misinterpretation or misunderstanding of      the Scope of Work, or because of any lack of  information. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | All      goods of whatever kind, which, during their installation become damaged      from any cause whatsoever, shall be removed and shall be replaced by new,      undamaged goods without any additional cost to the    Authority. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | The      Contractor shall furnish all labor, material, plant, tools, supplies and      other means necessary to perform the Work described in the Contract      Documents in accordance with the Scope of Work, and shall perform such      Work within the direction and to the satisfaction of the Project      Manager. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H. | All      Work by the Contractor shall be within the time specified in the      Contract. |
|----|------------------------------------------------------------------------------------------|

| ARTICLE      115 | INSURANCE |
|------------------|-----------|

| A. | The      Contractor and any Subcontractor shall procure at a minimum, the insurance      coverage specified in Attachment 4.  The Contractor or      Subcontractor shall be responsible for any deductible    amount. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | At      the discretion of the Project Manager, the Contractor shall procure      collision insurance, in an amount prescribed by the Project Manager, in      lieu of Garage Keepers Legal Liability  Insurance. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Authority has adopted a Central Insurance Program to be administered by      MTA Risk & Insurance Management, which provides Automobile and Truck      Liability Insurance for all Revenue Vehicles used in the Authority’s      paratransit service, with limits and other provisions as set forth in      Attachment No. 4, “Schedule A.1 – Modified Insurance Requirements for      Paratransit Contracts,” and also provides a Third Party Administrator to      process and investigate claims and defend the Insureds with regard to all      claims and actions covered by such liability insurance.  The      Contractor is a Named Insured under the aforesaid policy.  In      addition, the aforesaid policy shall name as Additional Insureds the      following parties, as applicable:  (i) any corporate parent of      the Contractor which has provided a guarantee of Contractor's performance      under this Contract; and (ii) any third party lessor of Revenue Vehicles      to Contractor.  It is the Contractor's responsibility to timely      notify the Authority of any such parties to be named as Additional      Insureds. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | In      the event a Vehicle or Non-Revenue Vehicle is deemed totaled by the      Authority, the ‘replacement value’ shall be calculated by a daily straight      line depreciation on the full purchase price over seven (7) years for a      Van and seven (7) years for a Sedan and ten (10) years for a Non-Revenue      Vehicle starting on the first day of Revenue Service.  The      Contractor shall be responsible to pay the replacement value including the      deductible. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      116 | RISK      OF LOSS |
|------------------|-------------------|

| A. | The      Contractor assumes the risk of, and shall be responsible for, any loss or      damage to Authority property, including property and equipment leased from      the Authority, used in the performance of this Contract, and caused,      either directly or indirectly by the acts, conduct, omissions or lack of      good faith of the Contractor, its officers, managerial personnel, and      employees or any person, firm, company, agent or others engaged by the      Contractor as expert, consultant, specialist, or Subcontractor      hereunder. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | In      the event that any such Authority property is lost or damaged, except for      normal wear and tear, then the Authority shall have the right to withhold      further payments hereunder for the purpose of set-off, in sufficient sums      to cover such loss or damage. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Contractor’s      obligation hereunder is to immediately repair, replace and make good such      loss or damage so as to restore the Work to the same character and      condition as before the loss or damage in accordance with the Contract      Documents without cost to theAuthority. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      rights and remedies of the Authority provided herein shall not be      exclusive and are in addition to any other rights and remedies provided by      law or by the Contract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      117 | SUBCONTRACTORS |
|------------------|----------------|

| A. | If      the Contractor will cause any part of this Contract to be performed by a      Subcontractor, unless otherwise expressly provided elsewhere in this      Contract, the provisions of this Contract shall apply to such      Subcontractor and its officers, agents and employees in all respects as if      it and they were employees of the Contractor; and the Contractor shall not      be in any manner thereby discharged from its obligations and liabilities      hereunder, but shall be liable hereunder for all acts and negligence of      the Subcontractor, its officers, agents and employees, as if they were      employees of the Contractor.  The employees of the Subcontractor      shall be subject to the same provisions hereof as the employees of the      Contractor; and the Work performed by the Subcontractor shall be subject      to the provisions hereof as if performed directly by the      Contractor. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contractor, before making any subcontract for any portion of the Work,      shall state in writing to the Authority the name of the proposed      Subcontractor, the portion of the Work which the proposed Subcontractor is      to do, its place of business, and such other information as the Authority      may require.  The Authority will have the right to require the      Contractor not to award any subcontract to a person, firm or corporation      disapproved by the Authority. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Before      entering into any subcontract hereunder, the Contractor shall inform the      proposed Subcontractor fully and completely of all provisions and      requirements of this Contract relating either directly or indirectly to      the Work to be performed.  Such Work performed by a      Subcontractor shall strictly comply with the requirements of this      Contract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| D. | In      order to qualify as a Subcontractor satisfactory to the Authority, in      addition to the other requirements herein provided, the Subcontractor      shall be prepared to prove to the satisfaction of the Authority that it      has the necessary facilities, skill and experience, and ample financial      resources to perform the Work in a satisfactory manner.  To be      considered skilled and experienced, the proposed Subcontractor shall show      to the satisfaction of the Authority that it has satisfactorily performed      Work of the same general type which is required to be performed under this      Contract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | If      any proposed Subcontractor or Supplier is a subsidiary or affiliate of      Contractor, then the Authority will require the submission of two (2)      additional competitive bids (for a total of three) from other potential      Subcontractors or Suppliers for the Work required to be performed under      this Contract.  The Contractor shall provide justification for      the selection of its own subsidiary or affiliate and will be subject to      Authority review and approval. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARTICLE      118 | RELATIONSHIP      OF CONTRACTOR TO THE AUTHORITY |
|------------------|--------------------------------------------------|

| ARTICLE      119 | DISCLOSURE |
|------------------|------------|

| ARTICLE      120 | CONFIDENTIALITY/ADVERTISITING      LIMITATION |
|------------------|-----------------------------------------------|

----

| A. | Confidential      Information |
|----|-------------------------------|

|  | 1. | For      purposes of this Article, the term “Contractor” shall be deemed to include      its principals, members, directors, officers and employees, and shall also      be deemed to include its Subcontractors, Suppliers, consultants and      agents, as well as their principals, members, directors, officers,      employees, agents and consultants.  The Contractor and the above      mentioned individuals or entities shall keep confidential all information      furnished to it (them) by the Authority or otherwise learned or derived by      it (them) about or in connection with this Project, any other      MTA/Authority project or contract or MTA/Authority policies, procedures,      operations, or infrastructure (“Confidential      Information”).  Confidential Information includes, but is not      limited to, specifications, drawings, plans, diagrams, sketches,      renderings and other technical data and information, as well as all      designs, maps, surveys, design calculations, shop drawings, charts,      photographs (including “progress photographs”) and CADD materials and      media.  Confidential Information pertaining to this Project may      only be utilized in connection with such Project and by individuals who,      in fact, have a “need to know” the contents of such Confidential      Information, and shall be appropriately safeguarded by the Contractor from      disclosure to anyone who is not so authorized by the Authority to have      access thereto. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Neither      the Contractor nor any of the above mentioned individuals or entities may      sell, transfer, disclose, display or otherwise make available to anyone      any part of such Confidential Information without the prior written      consent of the Authority. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | The      Contractor and the above mentioned individuals or entities shall not and      hereby represent and warrant that it/they shall not (nor shall it/they      through an agent or third party), unless agreed to in writing by the      Authority:  (i) send, ship, mail, deliver, email or otherwise      transmit in or by any fashion whatsoever (whether manually, by machine, by      facsimile or other electronic or digital technology or by other technology      or method), or (ii) enter into or issue an agreement, subcontract or other      instrument to send, ship, mail, deliver, email or otherwise transmit in or      by any fashion whatsoever (whether manually, by machine, by facsimile or      other electronic or digital technology or by other technology or method),      any such Confidential Information in any form or by any means (and if in      electronic form, for any such Confidential Information to be transmitted      to or reside in a computer or electronic device located) outside of the      United States. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | The      Contractor shall advise each of its employees, agents, consultants,      Subcontractors and Suppliers who may be exposed to such Confidential      Information of their obligation to maintain the confidentiality      thereof.  In addition, the Contractor agrees to cooperate fully      and provide any assistance necessary to ensure the confidentiality of the      Confidential Information. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | At      any time during the term of this Contract, the Contractor shall forthwith      deliver to the Authority any and all media containing any Confidential      Information as the Authority shall request.  The special      confidentiality obligations as set forth in this Article shall continue      until specifically released by the Authority in writing, except where      release thereof has been finally ordered by a court of competent      jurisdiction. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 6. | The      Contractor and the above mentioned individuals or entities hereby      represent and warrant that at the conclusion of the Project or upon its      termination, any Confidential Information that is to be retained by      it/them for archival/audit/legal purposes shall be certified as such and      shall be maintained in a secure facility, and that it/they shall maintain      care, custody and control over any and all media containing any      Confidential Information while in such secure facility and until any and      all media containing the Confidential Information are either returned to      the Authority or destroyed as provided in paragraph 7.,    below. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Except      as provided in paragraph 6, above, at the conclusion of the Project or      upon its termination, unless otherwise instructed in writing by the      Authority, the Contractor and the above mentioned individuals or entities      shall destroy its/their copies of any and all media containing all      Confidential Information such that recognition or reconstruction of the      Confidential Information is precluded.  Unless otherwise      permitted by the Authority, cross cut shredding of hardcopy items,      physical destruction of diskettes, floppies, CDs, DVDs, and any other      recordable media, deleting of electronic items by permanent deletion or      non-retrievable/irreversible placement in delete overwrite status are the      Authority’s required methods of such destruction with respect to documents      or materials containing Confidential Information which the Authority has      instructed are to be destroyed. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | In      the event the Contractor or any of the above mentioned individuals or      entities learns or believes that Confidential Information has been      released or believes that Confidential Information is about to be      released, the Authority shall be notified  immediately. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                     |
|--------|------------------------------------------|
| B.     | Approval      for Publication of Reports |

| C. | Press      Releases |
|----|---------------------|

| D. | Violations      of this Article |
|----|---------------------------------|

| Breach      of any of the foregoing provisions may be deemed by the Authority to be a      material breach of the Contract.  It is understood and agreed      that in the event of any such breach by the Contractor of these      provisions, damages may not be an adequate remedy and the Authority shall      be entitled to injunctive relief to restrain any such breach or threatened      breach. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      121 | AMENDMENTS |
|------------------|------------|

| ARTICLE      122 | ATTACHMENTS |
|------------------|-------------|

| ARTICLE      123 | RESCISSION |
|------------------|------------|

| ARTICLE      124 | EXTENSION      OF TERM |
|------------------|------------------------|

| A. | The      Authority has the option to extend the term of the Contract with no change      to the Contract Price, except for those adjustments to the Contract Price      which are set forth in the Contract, for up to ten (10) additional      year(s).  This option may be exercised, in the sole discretion      of the Authority, for a single or multiple  terms. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      option shall be exercised by notification by the Authority to the      Contractor, in writing, that it is exercising the option to extend the      term of the Contract, at any time prior to one (1) month in advance of the      expiration of the Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ARTICLE      125 | ORDER      OF PRECEDENCE |
|------------------|--------------------------|

| A. | If      this Contract contains any errors, inconsistencies, ambiguities or      discrepancies including typographical errors, the Contractor shall request      a clarification of same by requesting a determination by the Project      Manager. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | If      there is a conflict between provisions of the Contract Documents, upon      request for a determination by the Project Manager, the following order of      precedence shall generally apply, except that regarding a conflict between      or among provisions contained in the Scope of Work, Appendices and      Specific Contract Provisions, the more stringent requirement or provision      will generally be determined tocontrol. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Specific Contract Provisions, except that mandatory statutory and      regulatory provisions and requirements are not deemed superseded by      anything to the contrary contained in the Technical Specifications or the      Appendices. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      General Contract Provisions, except that mandatory statutory and      regulatory provisions and requirements are not deemed superseded by      anything to the contrary contained in the Technical Specifications, the      Appendices or the Specific ContractProvisions. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      Scope of Work. |
|--------|----|-------------------------|

|   | 4. | The      Price Schedule. |
|--------|----|--------------------------|

|   | 5. | The      Request for Proposals. |
|--------|----|---------------------------------|

|   | 6. | The      Contractor’s Price Proposal, as revised and accepted by the      Authority. |
|--------|----|--------------------------------------------------------------------------------------------|

----

| NEW      YORK CITY TRANSIT AUTHORITY | GENERAL      CONTRACT PROVISIONS |
|--------------------------------------|----------------------------------|

|             |                                                                                  | Page   |
|------------------|---------------------------------------------------------------------------------------|--------|
|             |                                                                                  |   |
| ARTICLE      201 | Agreement                                                                             | 1      |
| ARTICLE      202 | Notices                                                                               | 1      |
| ARTICLE      203 | General      Rules of Interpretation                                                  | 1      |
| ARTICLE      204 | Consent      of Authority Required for Subcontracting, Subletting, or      Assignment | 2      |
| ARTICLE      205 | Coordination      With Other Contractors                                              | 2      |
| ARTICLE      206 | Changes                                                                               | 2      |
| ARTICLE      207 | Extensions      of Time                                                               | 3      |
| ARTICLE      208 | Remedies      in Case of Default & Termination for Cause                          | 5      |
| ARTICLE      209 | Termination      for Convenience by the Authority                                     | 6      |
| ARTICLE      210 | Termination      for Convenience - Intergrity Matters                                 | 6      |
| ARTICLE      211 | Authority      of the Project Manager                                                 | 6      |
| ARTICLE      212 | Disputes                                                                              | 7      |
| ARTICLE      213 | Withholding      Money Due To Contractor to Meet Claims or Liens                      | 8      |
| ARTICLE      214 | Claims      By Contractor                                                             | 9      |
| ARTICLE      215 | Substitution      of Approved Securities                                              | 9      |
| ARTICLE      216 | Use      of Monies Withheld                                                           | 10     |
| ARTICLE      217 | Authority      May Avail Itself of All Remedies                                       | 10     |
| ARTICLE      218 | Relationship      Between the Authority and Others                                    | 10     |
| ARTICLE      219 | Liability      and Indemnification                                                    | 10     |
| ARTICLE      220 | Patents,      Copyrights and Infringement Claims                                      | 11     |
| ARTICLE      221 | Quantities      are Approximate/Variable Quantities Clause                            | 12     |
| ARTICLE      222 | General      Representations and Warranties                                           | 12     |
| ARTICLE      223 | No      Estoppel and No Waiver                                                        | 15     |
| ARTICLE      224 | Safety      Precautions                                                               | 15     |
| ARTICLE      225 | Inspection      and Evaluation                                                        | 15     |
| ARTICLE      226 | Books      and Records/Audit and Examination                                          | 16     |
| ARTICLE      227 | Subcontractor/Supplier      Books and Records                                         | 16     |
| ARTICLE      228 | Brand      Names/Substitution of Specified Material                                   | 16     |
| ARTICLE      229 | Removal      of Material/Waste Material                                               | 17     |
| ARTICLE      230 | Quality      Assurance                                                                | 17     |
| ARTICLE      231 | Compliance      with Applicable Laws, Regulations/Environmental Matters               | 17     |
| ARTICLE      232 | Final      Payment to Act as Release                                                  | 20     |
| ARTICLE      233 | Independent      Contractor                                                           | 20     |
| ARTICLE      234 | Contractor's      Employees                                                           | 20     |
| ARTICLE      235 | Confidentiality/Advertising      Limitation                                           | 21     |
| ARTICLE      236 | Tax      Exemption                                                                    | 21     |
| ARTICLE      237 | Equal      Employment Opportunities for Minority Group Members and    Women           | 21     |
| ARTICLE      238 | Antitrust      Assignment                                                             | 22     |
| ARTICLE      239 | Grand      Jury Testimony                                                             | 22     |
| ARTICLE      240 | Not      Used                                                                         | 23     |
| ARTICLE 241 | New      York Laws/Choice of Law, Consent to Jurisdiction and Venue                   | 23     |

| 8/06 | Operating      Contract | Page       i |
|------|-------------------------|-------------------|

----

|             |                                                                                                                    | Page   |
|------------------|-------------------------------------------------------------------------------------------------------------------------|--------|
|             |                                                                                                                    |   |
| ARTICLE      242 | Statute      of Limitations on Right to Sue the Authority/No Claim Against Authority      Officers, Agents or Employees | 24     |
| ARTICLE      243 | Contract      Documents Contain All Terms/Contractor Has Examined    Contract                                           | 23     |
| ARTICLE      244 | All      Legal Provisions Included                                                                                      | 25     |
| ARTICLE      245 | Severability                                                                                                            | 25     |
| ARTICLE 246 | Survival                                                                                                                | 25     |

| Contract      Execution | follows      after General ContractProvisions |
|-------------------------|-----------------------------------------------|

| Schedule      A | Insurance      Requirements                                                                           |
|-----------------|-------------------------------------------------------------------------------------------------------|
| Schedule      J | Responsibility      Questionnaire                                                                     |
| Schedule      K | Opportunities      for Minority and Women-Owned Business Enterprises                                  |
| Schedule      W | Compliance      with NYS State Finance law Sections 139-j and 139-k (“Lobbying      Law”) |
| Schedule X | Federal      Drug and Alcohol TestingRequirements                                                     |

| 8/06 | Operating      Contract | Page       ii |
|------|-------------------------|--------------------|

----

| A. | The      Information for Bidders, the Bid (including the Price Schedule), General      Contract Provisions, Specific Contract Provisions, Schedules (excluding      Schedule H, Bidder’s Qualification Questionnaire or Schedule J,      Responsibility questionnaire), all Addenda (if any), the Technical      Specifications (if any), the Contract Drawings (if any), the Attachments      (if any), and the Notice of Award, constitute the Contract and shall be      referred to collectively as the “Contract” or the “Contract      Documents.” |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contract is also deemed to include by reference those portions of the      Bidder’s Qualification Questionnaire or Responsibility Questionnaire which      contain additional conditions and obligations on the Contractor and rights      in favor of the Authority. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | References      to any agreement or other instrument shall be deemed to include such      agreement or other instrument as it may, from time to time, be modified,      amended, supplemented, or restated in accordance with its      terms. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      word “Contractor” when used in this Contract, shall mean the Bidder to      whom the Authority awards thisContract. |
|----|------------------------------------------------------------------------------------------------------------------------------------------|

| E. | The      terms “hereof,” “herein,” “hereby,” “herewith,” “hereto,” and “hereunder”      shall be deemed to refer to thisContract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| F. | The      headings of the paragraphs are inserted for convenience only and shall not      affect the construction or interpretation of this  Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | All      references to “days” shall be deemed to be calendar days, unless otherwise      expressly indicated. |
|----|---------------------------------------------------------------------------------------------------------------------------|

| H. | All      references to “business days” shall be deemed to be references to the days      of Mondays through Fridays, exclusive of Authority observed      holidays. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| I. | All      notices hereunder must be in writing, in accordance with ARTICLE 202, NOTICES,      unless expressly indicatedotherwise. |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

| J. | As      used herein the singular shall mean and include the plural; the masculine      gender shall mean and include the feminine and neuter genders; and vice      versa. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| K. | Other      terms appertaining to this Contract are set forth in the Specific Contract      Provisions. |
|----|--------------------------------------------------------------------------------------------------------|

| A. | This      Contract may be modified and changed from time to time as agreed to in      writing between the parties hereto, in a manner not materially affecting      the substance hereof. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | No      change in or modification, termination or discharge of this Contract in      any form whatsoever, shall be valid or enforceable unless it is in writing      and signed by the party to be charged therewith or his duly authorized      representative; provided, however, that any change in or modification,      termination or discharge of this Contract expressly provided for in this      Contract shall be effective as soprovided. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| C. | It      is agreed by the Contractor that any change resulting in additional Work      shall be paid at the applicable rates set forth in the Price Schedule for      equivalent items as determined by the Project Manager.  In the      event that the Authority shall order additional Work for which there are      no applicable rates set forth in the Price Schedule for equivalent items,      it is understood and agreed by Contractor that the Authority and      Contractor shall negotiate a mutually agreeable price to be paid by the      Authority for Contractor's performance of such additional      Work.  In the event that the parties are unable to agree upon a      price for the additional Work, the Project Manager may nevertheless direct      the Contractor to proceed with the additional Work.  The      Contractor shall diligently proceed with the additional Work, but may,      initiate a dispute within five (5) days of the Project Manager's directive      to proceed pursuant to ARTICLE 212, DISPUTES,      for a determination by the Disputes Resolution Officer (“DRO”) as to a      reasonable price therefor. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | If      as a result of the change or modification, the Authority determines that      more time is required for the Contractor to complete performance than is      specified within the Contract, the Authority will extend the time for      Contractor’s performance by the number of days actually required for      Contractor to complete the Work. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | If      the Contractor is delayed at any time during the progress of the Work by      the neglect or failure of the Authority or by a force majeure, then the      time for completion and/or affected delivery date(s) shall be extended by      the Authority subject to the following  conditions: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1 | the      cause of the delay arises after the Notice of Award and neither was nor      could have been anticipated by the Contractor by reasonable investigation      before such award; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | the      Contractor demonstrates that the completion of the Work and/or affected      delivery(s) will be actually and necessarily  delayed; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | the      effect of such cause cannot be avoided or mitigated by the exercise of all      reasonable precautions, efforts and measures whether before or after the      occurrence of the cause of delay;and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | the      Contractor makes written request and provides other information to the      Authority as described in paragraph (D)below. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------|

| B. | Any      reference in this Article to the Contractor shall be deemed to include      materialmen, Suppliers and Subcontractors, whether or not in privity of      contract with the Contractor, all of whom shall be considered as agents of      the Contractor for the purpose of thisArticle. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Authority reserves the right to rescind or shorten any extension      previously granted, if subsequently the Authority determines that any      information provided by Contractor in support of a request for an      extension of time was erroneous; provided however, that such information      or facts, if known, would have resulted in a denial of the request for an      excusable delay.  Notwithstanding the above, the Authority will      not rescind or shorten any extension previously granted if the Contractor      acted in reliance upon the granting of such extension and such extension      was based on information which, although later found to have been      erroneous, was submitted in good faith by the  Contractor. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| D. | The      request for an extension of time pursuant to paragraph (A) above, shall be      made within ten (10) days after the time when Contractor knows or should      know any cause for which it may claim an excusable delay and shall provide      any actual or potential basis for an extension of time, identifying such      cause and describing, as fully as practicable at that time the nature and      expected  duration of the delay and its effect on the completion      of that part of the Work identified in the request.  Contractor      shall not be entitled to an extension of time unless it affirmatively      demonstrates that it is entitled to such extension.  The      Authority may require the Contractor to furnish such additional      information or documentation as the Authority shall reasonably deem      necessary or helpful in considering the requested      extension.  The Contractor must also comply with requirements      sets forth in the Specifications (if any) regarding Contractor’s detailed      schedule for performance. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Within      thirty (30) days of its receipt of all such information and documentation      [or within thirty (30) days of Contractor’s filing of the original request      in the event the Authority requires no such additional material] the      Authority shall advise the Contractor of its decision on such requested      extension; except that, where it is not reasonably practicable for the      Authority to render such decision in the thirty (30) day period, it shall,      prior to the expiration of such period, advise the Contractor that it will      require additional time and the approximate date upon which it expects to      render such decision. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | In      regard to an injunction, strike or interference of public authority which      may delay the Work, the Contractor shall promptly give the Authority a      copy of the injunction or other order and copies of the papers upon which      the same shall have been granted.  The Authority shall be      accorded the right to intervene or become a party to any suit or      proceeding in which any such injunction shall be obtained and to move to      vacate the same or otherwise, as the Authority may deem      proper. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | Neither      the permitting of the Contractor to proceed with the Work subsequent to      the date specified in the Contract (as such date may have been extended      pursuant to this Article), the making of any payments to the Contractor      thereafter, nor the issuance of any Change Order thereafter, shall operate      as a waiver on the part of the Authority of any rights under this      Contract, including but not limited to the assessment of liquidated      damages (if any) or declaring Contractor in  default. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H. | In      case the Contractor shall be delayed at any time or for any period by two      or more of the causes above-mentioned in this Article, the Contractor      shall not be entitled to a separate extension for each one of the causes      but only one period of extension shall be granted for the      delay. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| I. | The      Contractor agrees to make no claim for damages for delay of any kind in      the performance of this Contract whether occasioned by any act or omission      of the Authority or any of its representatives and Contractor agrees that      any such claim shall be compensated for solely by an extension of time to      complete performance of the Work as provided  herein. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | The      Contractor shall be in default if it commits a breach of the Contract      deemed material by the Authority.  Without limiting the      generality of the foregoing and in addition to those instances      specifically referred to in the Contract, the Contractor shall be in such      default if: (i) it fails to begin the Work in accordance with the      requirements of the Contract; (ii) it abandons the Work; (iii) it assigns      or subcontracts the Work other than as provided in the Contract; (iv) at      any time the Project Manager shall be of the opinion that performance of      this Contract is unnecessarily or unreasonably delayed, or that the      Contractor is willfully violating any of the provisions or covenants of      this Contract or is not executing the same in good faith or in accordance      with its terms; (v) the Work is not completed within the time prescribed,      as may be extended by the Authority; (vi) the Contractor becomes insolvent      (other than as a bankrupt), or assigns for the benefit of creditors, or      takes advantage of any insolvency statute or debtor or creditor law or if      its property of affairs are put in the hands of a receiver; or (vii) the      Project Manager shall be of the opinion that the Work cannot be completed      within the time herein provided therefor or within the time to which such      completion may have been extended provided, however, that the      impossibility of timely completion is in the Project Manager’s opinion,      attributable to conditions within the Contractor’s  control. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | In      the event of a default by the Contractor, the Authority will notify the      Contractor of the default, in writing, and the Contractor shall      immediately cease performance of the Work or any part thereof under this      Contract.  The Authority shall thereupon have the right to take      any action necessary to complete the Work, including performing the Work      itself, or contracting with another individual or entity.  In      the event the Work is completed by the Authority or others, Contractor      shall be liable for the costs and expense of said labor, materials, plant,      tools, equipment, supplies and property.  The costs and expenses      so charged may be deducted by the Authority and paid out of any monies      otherwise payable to theContractor. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Authority may also bring any suit or proceeding to recover damages or to      obtain any other relief or for any other purpose proper under this      Contract. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      Authority may, in its sole discretion, waive a default by the Contractor,      but such waiver, and failure by the Authority to take action in respect to      any default, shall not be deemed a waiver of any subsequent      default. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | In      case the Authority shall by Contract or otherwise complete the Work or any      part thereof under the provisions of Paragraph B above, the Project      Manager from time to time during the course of the completion of the Work      or such part thereof or at any time thereafter, shall certify to the      amount of the expense incurred by the Authority in the completion of the      Work or such part thereof. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | In      the event that the Authority wrongfully terminates the Contract for      default, such termination shall be deemed to be a termination for      convenience in accordance with Article209. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | In      addition to any rights of termination by the Authority which may exist      pursuant to this Contract or by law, the Authority may terminate      performance of this Contract at any time for its own convenience upon      giving written notice thereof specifying the effective date, whereupon all      further liability of the Authority to the Contractor under this Contract      shall cease.  In the event of such termination, a proportionate      part of the compensation due for Contract Work performed prior to the      effective date of such termination and deemed acceptable to the Authority,      will be paid to the Contractor as determined by the    Authority. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Upon      receipt of a notice of termination under this article, the Contractor      shall cease performance of the Contract Work, shall cancel all cancelable      orders and place no further orders.  The Authority’s only      obligation with respect to such termination for convenience is to      compensate the Contractor for the goods/services supplied up until the      effective date of termination, provided, however, that in the event the      termination for convenience is predicated on a cessation or reduction of      funding earmarked for purposes hereof, the Authority’s payment obligations      with respect to such termination for convenience will be limited to the      amount of such funding actually received herefor.  The      Contractor shall not be entitled to any other payment by virtue of the      Authority’s exercise of its right of termination as provided in Paragraph      A of this Article and expressly waives and relinquishes any right to claim      damages or pursue any other remedy at law or relief in equity including      specific performance, by virtue of the Authority’s exercise of such right      of termination. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      Project Manager shall have general authority to give the Contractor orders      and directions with respect to this Contract, including but not limited      to, the right at any time to direct the return of any Authority material      or equipment removed by the Contractor as part of the Work.  The      Project Manager shall in all cases have the authority to initially      determine the value, acceptability and fitness of the Work under this      Contract, and to determine every question which may arise relative to the      Contract and to the fulfillment of the Contract on the part of the      Contractor.  Any and all material or equipment required or      proposed to be incorporated in the Work shall be subject to the approval      of the Project Manager and shall not be incorporated in the Work until      such approval has been given. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| B. | The      Project Manager shall make all necessary explanations as to the meaning      and intention of the Technical Specifications or Contract Drawings, shall      give all orders and directions contemplated therein or thereby and also      such orders and directions as may be necessary in every case in which      difficult or unforeseen conditions shall arise in performance of the Work      required by this Contract.  The Project Manager will provide      appropriate explanations and reasons for his decisions if requested by the      Contractor. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Contractor shall be bound by and promptly obey and follow every direction      or order given by the Project Manager regarding the performance and the      nature and manner of performance arising out of, under, or in connection      with, or related to or on account of, this Contract whether in writing or      orally and confirmed in writing, including any direction which the Project      Manager may give by way of withdrawal, modification or reversal of any      previous direction given by him, and regardless of whether the Contractor      agrees with the Project Manager’s determination.  This Article      shall not include such directions which by their nature are change orders      and which require that the procedures for change orders be followed prior      to the effectiveness of suchdirections. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      Contractor shall have a representative at its plant and the work site at      all times during performance of the Work authorized to receive orders and      directions from the ProjectManager. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | In      the event the Contractor and the Authority are unable to resolve their      differences concerning a determination by the Project Manager, the      Contractor may initiate a dispute in accordance with the procedure set      forth in this Article.  Exhaustion of these dispute resolution      procedures shall be a precondition to any lawsuit permitted      hereunder. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      parties to this Contract authorize the Disputes Resolution Officer      (“DRO”), identified as the Labor & Employee Relations Officer,      Department of Buses, acting personally, to decide all questions of any      nature whatsoever arising out of, under or in connection with, or in any      way related to or on account of, this Contract (including claims in the      nature of breach of Contract or fraud or misrepresentation before or      subsequent to Contract award) and the DRO’s decision shall be conclusive,      final and binding on the parties.  The DRO’s decision may be      based on such assistance as s/he may find desirable, including advice of      engineering or other experts.  The effect of the DRO’s decision      shall not be impaired or waived by any negotiations or settlement offers      in connection therewith, or by any prior decision of others, which prior      decisions shall be deemed subject to review, by any termination or      cancellation of this Contract.  All such disputes shall be      submitted in writing by either party to the DRO, acting personally, for      it’s decision, together with all evidence and other pertinent information      in regard to such questions, in order that a fair and impartial decision      may be made.  The DRO shall render their decision in writing and      deliver a copy of same to theparties. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | If      the Contractor protests the determination of the DRO, the Contractor may      commence a lawsuit in Supreme Court, Kings County under Article 78 of the      New York Civil Practice Law and Rules, it being understood the review of      the Court shall be limited to the question of whether or not the DRO’s      determination is arbitrary, capricious or so grossly erroneous as to      evidence bad faith.  No evidence or information shall be      introduced or relied upon in such an action or proceeding that has not      been presented to the DRO personally prior to the DRO making their      decision. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| D. | Neither      the requirements of this Article nor the time necessary for compliance      therewith, however, shall affect the time to have accrued for purpose of      any statute controlling actions/proceedings against the Authority and the      time of such accrual shall be determined without reference to this      Article. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | If      at any time a claim, lien or judgment shall be made by any person or      corporation against the Authority, for which Contractor is liable under      this Contract or, otherwise by law, with respect to matters pertaining to      the Work of this Contract, the Authority shall have the right to withhold      an amount it deems reasonably necessary to satisfy such claim, in addition      to the other sums herein authorized by the Contract to be so retained, out      of any monies then due or thereafter becoming due to the Contractor      hereunder, as security for the payment of such claim.  If the      liability of any such party on such claim or claims shall have been      finally adjudicated by a judgment of a court of competent jurisdiction or      such claim or claims shall have been admitted by the Contractor to be      valid, then the claim may, if determined by the Authority to be in its      best interest, be paid from the amount so retained hereunder, credited      against the payments due Contractor, and the balance, if any, paid to the      Contractor. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Should      any such claim remain unsatisfied at the time the final payment is due the      Contractor, the Authority shall have the right to retain out of said final      payment a sum in its judgment sufficient to protect the Authority in      regard to all unsatisfied claims.  In lieu of the foregoing, the      Authority may require othersecurity. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | In      case the amount thus retained should be insufficient to pay the amount      adjudicated to be due upon such claim, the Contractor shall pay the amount      of the deficiency to the Authority.  Upon the failure of the      Contractor so to do, the Authority may sue for and recover from the      Contractor the amount or balance as a debt from the      Contractor. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Notwithstanding      anything in this Article to the contrary, in the event of a claim for      injury to persons or damage to property by persons or corporations other      than the Authority, the Authority shall not withhold money due the      Contractor provided the Authority receives adequate written assurance from      the Contractor's insurance carrier that it will assume all responsibility      in connection with the claim including defending the Contractor or the      Authority in any lawsuit, and paying any judgment based on said      claim.  The Authority shall have sole discretion to determine      the adequacy of the assurancefurnished. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | In      the event that this Contract provides for retainage by the Authority of      monies due the Contractor as security for its full and timely completion,      the Contractor may from time to time withdraw portions of the amounts so      retained, or monies otherwise withheld for any other reasons under the      Contract provided any such monies have not been applied by the Authority      for reimbursement to itself or a third party in accordance with applicable      provisions of the Contract by depositing with the Chief Financial Officer      of the Authority approved securities, as set forth in paragraph C hereof,      with a market value equal to the amount to be  withdrawn. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contractor shall pay to the Authority the service charges then in effect      for the custodial safekeeping of securities deposited with the Authority      by the Contractor pursuant to the terms of this  Contract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Approved      securities are: securities of the United States Government, State of New      York, City of New York, New York City Transit Authority, Metropolitan      Transportation Authority or Triborough Bridge and Tunnel      Authority.  Other securities may be submitted for Authority      approval.  All such securities must be payable to, run in favor      of, or be transferred to, the Authority.  In case the securities      shall, during the term of the Contract, diminish in market value in the      opinion of the Authority, or are sold as set forth in ARTICLE 215, SUBSTITUTION OF      APPROVED SECURITIES, then, within ten (10) days after notice, the      Contractor shall deposit cash or securities to restore the value to that      originally stated.  A failure by the Contractor to deposit such      cash or securities in accordance herewith shall be a cause for      default. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      Authority shall pay to the Contractor all interest, dividends and other      income on the securities, when and as collected.  If the      securities are in the form of coupon bonds, the coupons as they      respectively become due shall be delivered to the Contractor; provided,      however, that the Contractor shall not be entitled to interest, dividends      or other income on any securities the proceeds of which shall be used or      applied as authorized under theContract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | The      term “Indemnified Parties,” whenever referred to in this Article, shall be      deemed to mean the Authority, the MTA, its affiliate agencies, New York      State and their members, officers, employees, and  agents. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contractor shall be solely responsible for all physical injuries      (including death) to person(s) (including, but not limited to, employees      of the Authority, Contractor or Subcontractors) and damage to property      (including, but not limited to, property of the Authority or the      Contractor or Subcontractors), occurring on account of or in connection      with the performance of the Work hereunder or sustained by any employee of      the Authority or Contractor or of Subcontractor.  The Contractor      shall indemnify and save harmless the Indemnified Parties, to the fullest      extent permitted by law, from loss and liability upon any and all claims      and expenses, including but not limited to attorneys’ fees, on account of      such injuries to persons or such damage to property, irrespective of the      actual cause of the accident, irrespective of whether it shall have been      due in part to negligence of the Contractor or its subcontractors or      negligence of the Indemnified Parties, or of any other persons, but      excepting bodily injuries and property damage to the extent caused by the      negligence of the Authority. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      term “loss and liability,” as used herein, shall be deemed to include, but      not be limited to, liability for the payment of Workers’ Compensation and      disability benefits under the Workers’ Compensation Law of the State of      New York or similar statutes. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| D. | Except      as otherwise provided in (B) above, the liability of the Contractor under      this Article is absolute and is not dependent upon any question of      negligence on its part or on the part of its agents, officers or      employees.  The approval of the Authority of the methods of      doing the Work or the failure of the Authority to call attention to      improper or inadequate methods or to require a change in methods or to      direct the Contractor to take any particular precautions or to refrain      from doing any particular thing shall not excuse the Contractor in case of      any such injury to person or damage toproperty. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | In      case any damage shall occur to any part of the Authority or New York City      Transit System (except only for the removal of such parts thereof as the      Contractor is specifically required by this Contract to remove) on account      of the Work, and the Contractor is responsible therefor, the Authority      shall have the right to cause such damage to be repaired and to charge the      expense of such repairs to the Contractor.  In the event that      such work is performed by the Authority, then the Authority shall deduct      the amount of such expense that may be incurred in repairing any such      damage from any monies due or to become due to the Contractor under this      Contract or any other agreement between the Contractor and the      Authority. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | All      inventions, ideas, designs and methods contained in the Contract Documents      in which the Authority has, or acquires patent, copyright or other      intellectual property rights (hereinafter referred to as “IPR”) shall      remain reserved for the exclusive use of the Authority and may not be      utilized, reproduced or distributed by or on behalf of the Contractor, or      any employee, Subcontractor or agent without the prior written consent of      the Authority except to the extent necessarily required in connection with      performance of the Work. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | If,      pursuant to performance of the Work, the Contractor or any of its agents,      officers, employees or subcontractors shall produce any patentable or      copyrightable subject matter as to which the Authority does not gain      ownership rights, the Authority and its affiliates shall thereupon have,      without cost or expense, an irrevocable, non-exclusive, royalty-free      license to make, have made or use, either themselves or by another      contractor or other party on their behalf, such subject matter in      connection  with any work or any activity now or      hereafter  undertaken by or on behalf of the Authority or any of      its affiliates or subsidiaries.  The license herein granted      shall not be transferable  and shall not extend to contractors      or other parties except to the extent of their work or activity on behalf      of the Authority or such affiliates or  subsidiaries. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Except      to the extent that rights are held by Contractor or others under existing      valid patents or copyrights and are not given to the Authority, the      Authority shall have the right to use or permit the use of all such      drawings, data, and other papers, and also any oral information of any      nature whatsoever received by the Authority, and any ideas or methods      represented by such papers and information, for any purposes and at any      time without other compensation than that specifically provided herein,      and no such papers or information shall be deemed to have been given in      confidence and any statement or legend to the contrary on any of said      drawings, data, or other papers shall be void and of no      effect. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      Contractor warrants that all Work performed shall be free from any claims      made against the Authority or Indemnified Parties of IPR from any other      person or entity.  The Contractor shall save harmless and      indemnify the Indemnified Parties from and against all costs, expenses and      damages which any of them shall incur or be obligated to pay by reason of      any such infringement or claim of infringement, and shall, at the election      of the Authority, defend at the Contractor’s sole expense all such claims      in connection with any allegedinfringement. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| E. | If      the Authority be enjoined from using any portion of the Work as to which      the Contractor is to indemnify the Authority against IPR claims, the      Authority may at its option and without thereby limiting any other right      it may have hereunder or at law or in equity, require the Contractor to      supply at its own expense, temporarily or permanently, facilities not      subject to such injunction and not infringing any IPR, and if the      Contractor shall fail to do so, the Contractor shall, at its expense,      remove such offending facilities and refund the cost thereof to the      Authority or take such steps as may be necessary to ensure compliance by      the Authority with such injunction, to the satisfaction of the      Authority. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | The      Contractor is responsible to determine whether a prospective Supplier or      Subcontractor is a party to any litigation involving IPR infringement      claims, including antitrust or other trade regulation claims, or is      subject to any injunction which may prohibit it under certain      circumstances from selling equipment to be used or installed under this      Contract.  The Contractor enters into any agreement with a party      to such litigation at its own risk and the Authority will not undertake to      determine the merits of such litigation.  The Authority,      however, reserves the right to reject any article which is the subject of      such litigation or injunction, or in its judgment use of such article as a      result of such circumstances, would delay the Work or be      unlawful. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      Contractor understands that the quantities of the various unit price items      specified in the Bid (if any) are the approximate quantities of such items      for the Work as estimated by the Authority, and are not in any way      guaranteed or represented as correct or intended to be relied upon and      they shall not be taken as final and shall form no basis for any claims      for damages including, but not limited to anticipated profits in case they      do not correspond with the final quantities actually ordered and that the      Authority reserves the right to increase or to diminish or to omit      entirely any of the quantities or items as therein stated in the Price      Schedule or these ContractDocuments. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | With      respect to any unit price item as to which an estimated quantity is set      forth in the Price Schedule, such unit price shall apply regardless of the      actual quantity of such item ultimately utilized in, or required by, the      Work; except that, if the actual quantity for a unit price item differs      from the estimated quantity in the Price Schedule by more than twenty      percent (20%), then the Project Manager shall review whether application      of the unit price would cause a substantial inequity to either party, and,      if so, the unit price for such item will be equitably adjusted, upward or      downward, as determined by the ProjectManager. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | This      is not an exclusive contract, and does not obligate the Authority to fill      through the Contractor all its needs for the goods or services covered by      the Contract. The Authority is free to obtain these goods or services from      other sources to the extent it seesfit. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | Existence; Compliance      with Law.  The Contractor (i) if it is a corporation is      duly incorporated, organized, validly existing and in good standing as a      corporation under the laws of the jurisdiction of its incorporation; (ii)      if it is a partnership, non-profit organization, individual or sole      proprietorship is duly organized and validly existing under the laws of      the jurisdiction in which it was organized; (iii) is duly qualified and in      good standing under the laws of each jurisdiction where its existing      ownership, lease, or operation of property in the conduct of its business      requires, and (iv) has the power and authority and the legal right to      conduct the business in which it is currently engaged and to enter into      this Contract. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Authority.  The      Contractor has full power, authority and legal right to execute, deliver      and perform this Contract.  The Contractor has taken all      necessary action to authorize the execution, delivery and performance of      this Contract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | No Legal      Bar.  The execution, delivery and performance of the      Contract do not and will not violate any provision of any existing law,      regulation, or of any order, judgment, award or decree of any court or      government applicable to the Contractor or the charter or by-laws of the      Contractor or any mortgage, indenture, lease, contract, or other agreement      or undertaking to which the Contractor is a party or by which the      Contractor or any of its properties or assets may be bound, and will not      result in the creation or imposition of any lien on any of its respective      properties or assets pursuant to the provisions of any such mortgage,      indenture, lease, contract or other agreement or    undertaking. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | No      Litigation.  Except as specifically disclosed to the      Authority in writing prior to the date hereof, no claim, litigation,      investigation or proceeding of or before any court, arbitrator or      governmental authority is currently pending nor, to the knowledge of the      Contractor, is any claim, litigation or proceeding threatening against the      Contractor or against its properties or revenues (i) which involves a      claim of defective design or workmanship in connection with any contract      entered into by the Contractor or (ii) which, if adversely determined,      would have an adverse effect on the business, operations, property or      financial or other condition of the Contractor.  For purposes of      this paragraph, a claim, litigation, investigation or proceeding may be      deemed disclosed to the Authority if the Authority has received, prior to      the date hereof, detailed information concerning the nature of the matter      involved, the relief requested, and a description of the intention of the      Contractor to controvert or respond to such  matter. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | No      Default.  The Contractor is not in default in any respect      in the payment or performance of any of its obligations or in the      performance of any mortgage, indenture, lease, contract or other agreement      or undertaking to which it is a party or by which it or any of its      properties or assets may be bound, and no such default or Event of Default      (as defined in any such mortgage, indenture, lease, contract, or other      agreement or undertaking) has occurred and is continuing or would occur      solely as a result of the execution and performance of this      Contract.  The Contractor is not in default under any order,      award, or decree of any court, arbitrator,  or      government  binding upon or affecting it or by which any of its      properties or assets may be bound or affected, and no such order, award or      decree would affect the ability of the Contractor to carry on its business      as presently conducted or the ability of the Contractor to perform its      obligations under this Contract or any of the other financing to which it      is a party. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

|   | 1. | Contractor      warrants that no person or selling agency has been employed or retained to      solicit or secure this Contract upon any agreement or understanding for a      commission, percentage, brokerage, or contingent fee, excepting bona fide      employees or bona fide established commercial or selling agencies      maintained by Contractor for the purpose of securing    business. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Additionally,      Contractor warrants that no gratuities or other inducements have been      offered or given or will be offered or given (in the form of      entertainment, gifts, offers of employment, or any other thing of value)      to any official or employee of the Authority.  The Contractor      further warrants that during the term of the contract it shall not make      any offers of employment to any Authority employee, or solicit or      interview therefor, without obtaining the written approval of the      employee's Department Head. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | For      breach or violation of the foregoing warranties, the Authority shall have      the right to cancel the Contract without liability or, at its discretion,      to deduct from the Total Contract Price or otherwise to recover the full      amount of such commission, percentage, brokerage or contingent fee, or      gratuities, and to include the occurrence of such a breach or violation in      assessments of the Contractor’s responsibility in future    bids. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | Conflict of      Interest.  Contractor covenants that neither it, nor any      officer of the corporation or partner of the partnership, as the case may      be if Contractor be a corporation or partnership, has any interest, nor      shall it acquire any interest, either directly or indirectly, which would      conflict in any manner or degree with the performance of the Work      hereunder.  It further covenants that, in the performance      hereof, no person having such interest shall be employed by      it.  It is expressly understood that breach of any of the      covenants contained in this paragraph is a material breach hereof and      shall entitle the Authority to recover damages immediately, as well as all      monies paid hereunder. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H. | No Conviction or      Indictment.  Contractor hereby represents that to the      best of its knowledge neither it, nor any of its personnel or shareholders      has been the subject of any investigation nor has any of them been      convicted or indicted for commission of any crime involving misconduct,      corruption, bribery, or fraud in connection with any public contract in      the State of New York or any other jurisdiction, except as has been      specifically disclosed in writing to the Authority, and that, should any      such conviction or indictment be obtained or any such investigation      commenced prior to the expiration of the term hereof, regardless of the      date of the occurrence giving rise to the subject matter of such      conviction, indictment or investigation, it will be disclosed in writing      to the Authority. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | The      Authority shall not, nor shall any department or officer thereof be      precluded or estopped by any return or certificate made or given by the      Authority, the Project Manager or other officer, agent, or appointee      thereof under any provision of this Contract from at any time either      before or after the final completion and acceptance of the Work and      payment therefor pursuant to any such return or certificate, showing the      true and correct classification, amount, quality and character of the Work      done and materials furnished by the Contractor or any other person under      this Contract or from showing at any time that such return or certificate      is untrue and incorrect or improperly made in any particular, or that the      Work and materials, or any part thereof, do not in fact conform to the      Contract; and the Authority shall not be precluded or estopped,      notwithstanding any such return or certificate and payment in accordance      therewith, from demanding and recovering from the Contractor such damages      as it may sustain by reason of his failure to comply with this      Contract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Neither      the acceptance of the Authority or the Project Manager or any of the      employees of the Authority, nor any order, measurement or certificate by      the Project Manager nor any order by the Authority for payment of money      nor any payment for, nor acceptance of, the whole or part of the Work nor      any extension of time, nor any possession taken by the Authority or the      employees of the Authority shall operate as a waiver of any portion of      this Contract or of any power herein reserved to the Authority or of any      right to damages herein provided; nor shall any waiver of any breach of      this Contract be held to be a waiver of any other or subsequent      breach. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | In      the event that the Authority is entitled to any rights under any statute,      whether or not expressly referenced in the Contract Documents, nothing      shall be deemed to constitute a waiver by the Authority      thereof. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      Authority shall have the right to inspect the Work      hereunder.  If any such inspection shows that the Work does not      conform to the Contract Documents including, but not limited to, the      Technical Specifications, the Authority shall so notify the Contractor and      the Contractor shall replace or repair the Work at no additional cost to      the Authority so that the Work conforms to the Contract      Documents.  The Authority’s failure to draw the Contractor’s      attention to any such failure to conform shall not relieve the Contractor      of any of its obligations under thisContract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| B. | Upon      completion of the Work, the Contractor shall notify the Project Manager in      writing that the Work has been completed.  An Authority      inspector will inspect the Work and if such Work is deemed unsatisfactory      in any respect, the Contractor, at no additional cost to the Authority,      will replace the goods or repair or correct such Work and, if applicable,      correct the installation all to the satisfaction of the Project      Manager.  The Contractor must notify the Project Manager in      writing that all Work has beencompleted. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Wherever      in the Contract a particular brand, or make of material, or equipment is      shown or specified, such material or equipment is to be regarded merely as      a standard for the purpose of concisely indicating the requirements as to      type, quality, performance, design and finish.  Any material or      equipment other than that specified will be acceptable if, in the opinion      of the Project Manager, it is as satisfactory for the particular work for      which it was intended as the material or equipment      specified.  Complete documentation in support of an “or equal”      contention will be required.  The Project Manager may require      that a presentation be made for any proposed substitution.  The      Authority reserves the right to reject any such other material or      equipment offered which is not approved by the Project Manager as being in      all respects equal to the named material or equipment for the work for      which it is to be used.  Such rejection may be for any reason      including without limitation the Project Manager’s determination that the      evaluation would result in excessive expense and/or time needed to      evaluate such material orequipment. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Unless      there is a specific statement to the contrary, the Contractor understands      that requests for such approval of any alternative material or equipment      shall be submitted within thirty (30) days after Contract      Award. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Contractor is obligated to furnish all data and information as the      Authority in its discretion deems necessary to establish the equality of      the alternative material or equipment.  If the Contractor seeks      reconsideration of any determination with respect to equivalency, the      Authority shall have discretion to reconsider the matter.  In      the event of a reconsideration the Contractor shall be obligated to pay      all Authority expenses in connectiontherewith. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The      Authority shall be the sole judge of the acceptability of items offered as      equal to that specified and may reject any item not considered as equal      thereto.  The Contractor must submit proof satisfactory to the      Authority, including a non-returnable sample if requested by the      Authority, that the item the Contractor offers is equal to the material or      equipment specified in quality, performance and such other characteristics      as the Authority may deemrelevant. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| E. | The      Authority will consider as evidence of equivalency an independent      laboratory certification concluding that the Contractor's proposed item      meets or exceeds all requirements and standards, including performance      criteria, of the particular brand or make of material or equipment      specified by the Authority.  The laboratory must be accredited      by the American Association for Laboratory Accreditation or be otherwise      acceptable to the Authority. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Unless      otherwise specified for return to the Authority, all scrap material (if      any) shall become the property of the Contractor.  It is      presumed that the scrap credit value is reflected in the Price      Schedule.  The Contractor, at its own cost and expense, shall be      responsible for removal and proper disposal of all scrap material, in      accordance with all applicable federal, state and local laws, rules and      regulations.  The Contractor shall defend, indemnify and hold      harmless the Authority for any and all claims relating to said scrap      material. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Waste      material of any character will under no conditions be permitted to remain      on the site of the Work but must be immediately on it becoming unfit for      use in the Work be carted away and disposed of by the Contractor at his      own expense.  The Contractor shall thoroughly clean and keep      clean the areas in which the Work hereunder is to be done or which are to      be used in connection herewith. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      Contractor and all persons employed upon the Work, including its      Subcontractors, agents, officers, and employees shall comply with all      applicable laws, rules and regulations, including all applicable      requirements of governmental agencies and departments in the jurisdiction      in which the Work is performed, and all safety regulations of the      Authority. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| B. | The      Contractor, Subcontractor and all Suppliers must submit evidence that all      standards, orders and regulations issued pursuant to the Clean Air Act of      1970 will be met.  If either the State or City air pollution      control agency has more restrictive standards, they shall be      enforced.  The evidence and related documents will be retained      by the Authority for on-site examination by appropriate enforcement      agencies. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Contractor, and any Subcontractor must comply with all local, State and      Federal laws, rules and regulations applicable to this Contract and to the      Work to be done hereunder, including but not limited to the Federal      Occupational Safety and Health Act of 1970 and the Construction Safety Act      of 1969, as amended. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Attention      is called regarding environmental matters that must be observed by the      Contractor in the prosecution of the Work, consisting, among others, of      safety of operations, noise control, prevention and/or control of air      pollution, removal of waste materials, storage of construction materials,      protection against fire, minimum disturbance to pedestrian and vehicular      traffic, maintaining use of public facilities, and protection against dust      hazards.  These matters are specifically enumerated merely as a      guide.  The enumeration is not a complete list of environmental      matters to be observed and does not exclude matters contained in this      Contract or matters applicable by virtue of City, State or Federal law,      rule or regulation which are not specifically designated in this      paragraph.  All environmental provisions will be strictly      enforced. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | As      between inconsistent provisions among Federal State and local laws, the      Contractor should generally comply with the more stringent requirement,      unless a Federal law, rule or regulation requires that the affected      Federal provision be observed, notwithstanding the existence of a more      stringent applicable State or localrequirement. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | Prohibition on      Purchase of TropicalHardwoods |
|----|---------------------------------------------------|

|   | 1. | Except      as hereinafter provided, New York State Finance Law §165-2, prohibits      public benefit corporations (the Authority) from purchasing or obtaining      for any purpose any tropical hardwoods or tropical hardwood products in      any form. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | the      purchase of any tropical hardwood or tropical hardwood product for which      there is no acceptable non-tropical hardwood species;  or |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | where      the Contracting Officer finds that no person or entity doing business in      the state is capable of providing acceptable non-tropical hardwood species      sufficient to meet these particular contract requirements;    or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | the      restriction would violate the terms of a grant to the Authority from the      Federal Government; or |
|--------|----|---------------------------------------------------------------------------------------------------------------|

|   | e. | where      the inclusion of such provisions results in a substantial cost increase to      the Authority. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

|   | a. | “Non-tropical      hardwood species” shall mean any and all hardwood that grows in any      geographically temperate regions, as defined by the United States Forest      Service, and is similar to tropical hardwood in density, texture, grain,      stability or durability.  Non-tropical hardwood, the use or      purchase of which is preferred under this Article, shall include, but not      be limited to those species listed in New York State Finance Law Section      165, paragraph 1. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | “Tropical      hardwood” shall mean any and all hardwood, scientifically classified as      angiosperme that grows in any tropical moist forest.  A list of      tropical hardwoods is found in New York State Finance Law Section 165,      paragraph 1. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | “Tropical      rain forests” shall mean any and all forests classified by the scientific      term “Tropical moist forests,” the classification determined by the      equatorial region of the forest and average  rainfall. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | “Tropical      wood products” shall mean any wood products, wholesale or retail, in any      form, including but not limited to veneer, furniture, cabinets, paneling,      moldings, doorskins, joinery, or sawnwood, which are composed of tropical      hardwood except plywood. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | Omnibus      Procurement Act of 1992 |
|----|--------------------------------------|

|   | 1. | If      this Contract is awarded in an amount equal to or greater than one million      dollars, the Contractor will be required to document its efforts to      encourage the participation of New York State business enterprises as      suppliers and subcontractors by showing that the Contractor      has: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | solicited      bids, in a timely and adequate manner, from New York State business      enterprises including certified minority-owned  business, |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | contacted      the New York State Department of Economic Development to obtain listings      of New York State businessenterprises, |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | placed      notices for subcontractors and suppliers in newspapers, journals and other      trade publications distributed in New York State,  or |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

|   | 2. | If      this Contract is awarded in an amount equal to or greater than one million      dollars, the Contractor will be required to notify New York State      residents of employment opportunities through listing any such positions      with Community Services Division of the New York Department of Labor, or      providing for such notification in such manner as is consistent with      existing collective bargaining contracts or  agreements. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | All      experts or consultants or employees of the Contractor who are employed by      the Contractor to perform Work under this Agreement are neither employees      of the Authority nor under contract to the Authority and the Contractor      alone is responsible for their work, direction, compensation and personal      conduct while engaged under this Agreement.  Nothing in this      Agreement shall impose any liability or duty on the Authority for the      acts, omissions, liabilities or obligations of the Contractor or any other      person, firm, company, agency, association, corporation, or organization      engaged by the Contractor as expert, consultant, independent contractor,      specialist, trainee, employee, servant, or agent, or for taxes of any      nature including but not limited to unemployment insurance, workers’      compensation, disability benefits and social security, or, except as      specifically stated in this Agreement, to any person, firm or      corporation. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | All      employees of the Contractor or Subcontractor shall wear a visible      identification badge at all times while on Authority property and shall      observe all rules and regulations applicable to Authority      employees.  The identification badge shall contain the      employee’s name, picture, title of position, name of company and address      of company. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Employees      of the Contractor who are found to be intoxicated, or who have been found      partaking of or appear to be under the influence of intoxicating or      alcoholic beverages or controlled substances while engaged in the      performance of their duties or during their break period shall be      summarily removed by the Contractor from the project for the duration of      the Contract because of the stringent safety precautions      required. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| D. | Whenever      the Project Manager shall notify the Contractor in writing that in his/her      opinion any worker employed for this Contract is incompetent, unfaithful,      behaving in an unsafe or disorderly manner, such individual shall be      discharged from the Work and shall not again be employed on      it. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Contractor,      its employees, and Subcontractors shall keep confidential all information      furnished to it (them) by the Authority or otherwise learned by it (them)      in the course of performancehereunder. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Except      as may be required by law, Contractor shall not make any announcement or      release any information concerning this Contract or any part thereof to      any member of the public, press, or any official body, unless prior      written consent is obtained from theAuthority. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      Contractor will not discriminate against employees or applicants for      employment because of race, creed, color, national origin, sex, age,      disability or marital status, and will undertake or continue existing      programs of affirmative action to ensure that minority group members and      women are afforded equal employment opportunities without discrimination.      For purposes of this Article affirmative action shall mean recruitment,      employment, job assignment, promotion, upgrading, demotion, transfer,      layoff, or termination and rates of pay or other form of      compensation. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | At      the request of the Authority, the Contractor shall request each employment      agency, labor union, or authorized representative of workers with which it      has a collective bargaining or other agreement or understanding to furnish      a written statement that such employment agency, labor union or      representative will not discriminate on the basis of race, creed, color,      national origin, sex, age, disability or marital status and the such union      or representative will affirmatively cooperate in the implementation of      the Contractor’s obligationsherein. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      Contractor shall state, in all solicitations or advertisements for      employees, that, in the performance of this Contract, all qualified      applicants will be afforded equal employment opportunities without      discrimination because of race, creed, color, national origin, sex, age,      disability or marital status. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| D. | After      award of this Contract, the Contractor shall submit to the Authority a      work force utilization report. in a form and manner required by the      Authority, of the work force actually utilized on this Contract. broken      down by specified ethnic background, gender, and Federal Occupational      Categories or other appropriate categories specified by the      Authority. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Within      sixty (60) days of the execution of this Contract, the Contractor shall      submit a staffing plan, in a form and manner required by the Authority,      which shall contain information on employees projected to work on      activities related to the contract. This information must be broken down      by specified ethnic background, gender and related job    titles. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | For      construction contracts, after the award of the Contract, the Contractor      shall submit on a monthly basis, in a form and manner required by the      Authority, throughout the life of the Contract, a work force utilization      report which details employee’s hours worked on activities related to this      Contract. This information must be broken down by specified ethnic      background, gender and related jobtitles. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | Except      for construction contracts, after the award of the Contract, the      Contractor shall submit on a semi-annual basis, in a form and manner      required by the Authority, throughout the life of the Contract, a work      force utilization report which details the number of employees that worked      on activities related to this Contract. This information must be broken      down by specified ethnic background, gender and related job titles. In      instances where a contractor's work force cannot be broken out, the      Contractor must affirm such and submit, an EEO-1 Form detailing its      current work force. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H. | The      Contractor will include the provision of paragraphs A through G above. in      every subcontract in such a manner that the provisions will be binding      upon each Subcontractor as to work in connection with this Contract,      including the requirement that subcontractors and parties to this Contract      shall undertake or continue existing programs of affirmative action to      ensure that minority group members and women are afforded equal employment      opportunities without discrimination, and, when requested, provide to the      Contractor information on the ethnic background, gender, and Federal      Occupational Categories of the employees to be utilized on this      Contract. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

| A. | Upon      refusal of the Contractor as an individual or as member, partner, director      or officer of the Contractor, if the Contractor be a firm, partnership or      corporation, when called before a grand jury, governmental department,      commission, agency or any other body which is empowered to compel the      attendance of witnesses and examine them under oath, to testify in an      investigation or to answer any relevant questions concerning any      transaction or contract entered into with the State, or any political      subdivision thereof, or a public authority or with any public department,      agency or official of the State or any political subdivision thereof, when      immunity has been granted to the witness against subsequent use of such      testimony, or any evidence derived therefrom in any subsequent criminal      proceeding: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Such      individual, or any firm, partnership or corporation of which he is a      member, partner, director or officer shall be disqualified for a period of      five (5) years after such refusal from submitting bids for, or entering      into or obtaining any contracts, leases, permits or licenses with the City      of New York, the Metropolitan Transportation Authority or the New York      City Transit Authority or submitting bids for or entering into, or      obtaining any contracts, leases, permits or licenses which will be paid      out of any monies under the control of or collected by the City, the      Metropolitan Transportation Authority, the New York City Transit Authority      and/or shall be subject to such other action appropriate under the      circumstances; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | this      Contract and any and all such existing contracts, leases, permits or      licenses made with or obtained by any such individual or with or by the      firm, partnership, or corporation of which he/she is a member, partner,      director or officer may be cancelled or terminated by the City, the      Metropolitan Transportation Authority or the New York City Transit      Authority or the contracting agency or be subject to such action      appropriate under the circumstances thereto without incurring any penalty      or damages on account of such cancellation or termination, but any monies      owing for goods delivered, work done, or rentals, permit or license fees      due, prior to the cancellation or termination, shall be    paid. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | This      Contract shall be deemed to be executed in the City of New York, State of      New York, regardless of the domicile of the Contractor and shall be      governed by and construed in accordance with the laws of the State of New      York. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      parties agree that any and all claims asserted by or against the Authority      arising hereunder or related hereto shall be heard and determined either      in the courts of the United States located in New York City (“Federal      Courts”) or in the courts of the State of New York (“New York State      Courts”) located in Kings County.  To effect this agreement and      intent, the Contractor agrees: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | If      the Authority initiates any action against the Contractor in Federal Court      or in New York State Court, service of process may be made on the      Contractor either in person, wherever such Contractor may be found, or by      Certified Mail addressed to the Contractor at its address as set forth      herein or to such other address as the Contractor may provide to the      Authority in writing. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

|   | 2. | With      respect to any action between the Authority and the Contractor in a New      York State Court, the Contractor hereby expressly waives and relinquishes      any rights he may otherwise have (a) to move to dismiss on grounds of      forum non conveniens, (b) to remove to Federal Court; and (c) to move for      a change of venue to a New York State Court outside Kings      County. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | With      respect to any action between the Authority and the Contractor in Federal      Court located in New York City, the Contractor expressly waives and      relinquishes any right it might otherwise have to move to transfer the      action to a Federal Court outside the City of New  York. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | If      the Contractor commences any action against the Authority in a court      located other than as provided for herein, upon request, the Contractor      shall either consent to a transfer of the action to a court of competent      jurisdiction, as set forth herein, or, if the court where the action is      initially brought will not or cannot transfer the action, shall consent to      dismiss such action without prejudice and thereafter reinstitute the      action in a court of competent jurisdiction as provided for      herein. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | No      action shall lie or be maintained by the Contractor against the Authority      upon any claim arising out of or based upon this Contract or by reason of      any act or omission or requirement of the Authority or its agents, unless      such action shall be commenced within six (6) months after the completion      of the Work, other than Warranty Work, or earlier termination of the      Contract.  No additional time shall be allowed to begin anew any      other action if an action commenced within the time herein limited be      dismissed or discontinued, notwithstanding any provision in the New York      Civil Practice Law and Rules (“CPLR”) to the contrary.  Nothing      herein shall extend the time, as provided in the CPLR, to commence a      lawsuit. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | No      member, officer, agent or employee of the Authority shall be liable      personally hereunder or by reasonhereof. |
|----|---------------------------------------------------------------------------------------------------------------------------|

| A. | These      Contract Documents contain all the terms and conditions agreed upon by the      parties hereto, and no other agreement, oral or otherwise, regarding the      subject matter of this Contract shall be deemed to exist or to bind any of      the parties hereto, or to vary any of the terms contained      herein. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Contractor hereby represents that prior to the execution of this Contract      he read each and every clause and section of the Contract and had full      opportunity to consider the same and make necessary investigations      relating thereto; and he shall not make any claim for, or have any right      to, damages or an extension of time for completion of the Contract or any      other concession because of any misinterpretation or misunderstanding of      this Contract or because of any lack of  information. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | GENERAL      CONTRACT PROVISIONS |
|--------|----------------------------------|

----

|   | * | The      Contractor, if a partnership, joint venture or corporation, must execute      this Contract in the exact firm or corporate name as it appears in its      partnership or joint venture agreement or certificate of      incorporation.  If the Contractor is a corporation and this      Contract is executed by an Officer other than the President or Vice      President, the Contractor shall furnish a certified copy of by-laws or a      resolution authorizing said Officer to sign, unless same has previously      been furnished to the Authority.  If the Contractor is a joint      venture or partnership, and an individual executes this Contract on behalf      of more than one member of the joint venture or partnership, documentation      shall be furnished establishing such individual’s authority to bind each      such member. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |
|--------------------|
| Notary      Public |

| 8/06 | Operating      Contract | Page       2 |
|------|-------------------------|-------------------|

----

|  ̈ | (If an individual):      executed the foregoing instrument in her/his name and on her/his own      behalf. |
|--------|------------------------------------------------------------------------------------------------------------|

|  ̈ | (If a corporation): is      the __________________________________________________________ of      __________________________________________________, the corporation in      said instrument; that, by authority of the Board of Directors of said      corporation, s/he is authorized to execute the foregoing instrument on      behalf of the corporation for the purposes set forth therein; and that,      pursuant to that authority, s/he executed the foregoing instrument in the      name of and on behalf of said corporation as the act and deed of said      corporation. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | (If a partnership): is      the ___________________________________________________________ of      __________________________________________________, the partnership      described in said instrument; that, by the terms of said partnership s/he      is authorized to execute the foregoing instrument on behalf of the      partnership for the purposes set forth therein; and that, pursuant to that      authority, s/he executed the foregoing instrument in the name of and on      behalf of said partnership as the act and deed of said      partnership. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | (If a limited liability      company): is a duly authorized member of      ______________________________________________________________ LLC, the      limited liability company described in said instrument; that, s/he is      authorized to execute the foregoing instrument on behalf of the limited      liability company for the purposes set forth therein; and that, pursuant      to that authority, s/he executed the foregoing instrument in the name of      and on behalf of said limited liability company as the act and deed of      said limited liability company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |
|--------------------|
| Notary      Public |

----

| I.     | INTRODUCTION                                                                                                  | 1      |
|--------|---------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                          |   |
| II.    | GENERAL      SCOPE OF PARATRANSIT SERVICE PROVISION                                                           | 1      |
|   |                                                                                                          |   |
| III.   | DIVISION      OF RESPONSIBILITES BETWEEN THE AUTHORITY AND CONTRACTOR FOR START UP AND      OPERATIONS PHASES | 5      |
|   |                                                                                                          |   |
| IV.    | CONTRACTOR      FACILITIES                                                                                    | 7      |
|   |                                                                                                          |   |
| V.     | STRATAGEN      – ADEPT AUTOMATED SCHEDULING SYSTEM                                                      | 9      |
|   |                                                                                                          |   |
| VI.    | VEHICLES                                                                                                      | 10     |
|   |                                                                                                          |   |
| VII.   | MAINTENANCE      – VEHICLES & NON-REVENUE VEHICLES                                                  | 11     |
|   |                                                                                                          |   |
| VIII.  | FUEL                                                                                                          | 14     |
|   |                                                                                                          |   |
| IX.    | PERSONNEL                                                                                                     | 16     |
|   |                                                                                                          |   |
| X.     | OPERATOR      QUALIFICATIONS                                                                                  | 19     |
|   |                                                                                                          |   |
| XI.    | OPERATOR      TRAINING                                                                                        | 20     |
|   |                                                                                                          |   |
| XII.   | OPERATOR      DUTIES                                                                                          | 21     |
|   |                                                                                                          |   |
| XIII.  | CUSTOMER      SERVICE                                                                                         | 24     |
|   |                                                                                                          |   |
| XIV.   | DISPATCH                                                                                                      | 25     |
|   |                                                                                                          |   |
| XV.    | DISPATCH      LIAISON                                                                                         | 26     |
|   |                                                                                                          |   |
| XVI.   | ROAD      SUPERVISION                                                                                         | 28     |
|   |                                                                                                          |   |
| XVII.  | REPORTING                                                                                                     | 28     |
|   |                                                                                                          |   |
| XVIII. | ACCIDENT      INVESTIGATION AND REPORTING                                                                     | 29     |
|   |                                                                                                          |   |
| XIX.   | CONTRACT      MANAGEMENT                                                                                      | 30     |
|   |                                                                                                          |   |
| XX.    | COMPLAINT      MANAGEMENT REQUIREMENTS                                                                        | 32     |
|   |                                                                                                          |   |
| XXI.   | FUTURE      SERVICE AND OPERATIONS CHANGES                                                                    | 33     |

----

|   | 1. | The      Contractor shall operate paratransit service in such a manner as to meet      the Authority’s objective to provide ADA compliant paratransit service      that is safe, reliable, clean, Customer friendly and cost      efficient. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Contractor shall provide Operators, maintenance, Dispatch, supervisors,      training, security, safety and all other personnel required to perform the      Contract. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      Contractor shall provide Vehicle and office facilities, fuel, parts,      supplies, office equipment and all other items and services described      herein to ensure efficient operation of the service and to fully satisfy      the maintenance, operational and safety objectives of this      Contract. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The      Authority will determine the number and type of Vehicles to be assigned to      the Contractor, the number of Routes required on a daily basis, the number      of hours of each Route and the trips to be  performed. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The      Authority will provide policy direction, Customer eligibility      determinations, government and community relations, Customer assistance      and various services in support of the Contractor’s    operation. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | The      Authority from time to time will issue directives clarifying matters      relating to this Scope of Work and other Contract      requirements.  The Contractor shall comply with all such      directives. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Authority will schedule Routes to operate at any time during the period      from approximately 4:00 a.m. to 12:00 a.m., the Authority may schedule the      Contrator’s routes to operate twenty-four (24) hours a day.  On occasion, with      two (2) calendar days notice, the Authority may require the Contractor to      perform additional Routes for service past 10:00 p.m. for holidays, such      as, Thanksgiving, New Year’s Eve, Christmas Eve, Mother’s Day and      Independence Day.  The Authority will assign the      Contractor a group of Route |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2. | The      Operator shall wait for the Customer for up to five (5) minutes past the      Scheduled Pickup Time, or, if the Operator arrives after the Scheduled      Pickup Time, for at least five (5) minutes from arrival.  If the      Customer fails to show after five (5) minutes of waiting, the Operator      shall make a reasonable attempt to locate the Customer. If the Customer      still cannot be located, the Operator shall notify the Dispatcher who      shall attempt to contact the Customer by telephone. If the Dispatcher is      unable to contact the Customer by telephone, the Dispatcher shall release      the Operator.  The Operator shall record a Customer No Show on      the Trip Ticket, indicating actual arrival and release times, as well as      the odometer reading, and immediately relay all information to the      Dispatcher who, in turn, shall notify the Command Center.  The      Operator shall note this same information on the Manifest and complete the      Customer No Show Form, Attachment No.22. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      Operators are to provide door to door (outside street level door at the      pickup and drop off locations) service and assistance to Customers, as      required.  Operators shall assist Customers with the fastening      of their seat belts, if needed.  Should a passenger refuse the      seat belt, the Operator shall immediately notify the      Dispatcher.  The Dispatcher shall record it in ADEPT and notify      the Command Center.  The Operator shall also record it on the      Manifest and Trip Ticket.  If requested, Customers who are      unable to climb stairs may use the wheelchair lift to enter the      Van.  All wheelchairs and motorized scooters shall be secured      with the appropriate securement system in the Vehicle wheelchair location      prior to departure. If a Customer wishes to transfer to a seat from a      wheelchair or scooter and if space is and will be available on the Route,      Operators are required to assist Customers if the transfer can be made      without lifting or carrying the Customer, both of these actions are      strictly prohibited.  Operators shall contact the Dispatcher for      instructions if a Customer refuses to have his/her wheelchair or person      secured. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | If      requested, the Operator shall assist the Customer with up to two (2)      parcels with a combined total weight not to exceed forty (40) pounds, from      the door of the pickup location to the Vehicle and from the Vehicle to the      door of their destination location.  Operators shall also handle      and safely stow assistive devices, such as, wheelchairs, walkers, canes,      etc. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 5. | ADA      requires that disabled persons who have been determined by the Authority      to be ADA eligible for paratransit service be permitted to travel with      Personal Care Attendants (PCAs) and one (1) Guest.  If eligible      to travel with a PCA, the Customer’s AAR identification card issued by the      Authority is coded with the symbol “Y”. The Operator is only required to      provide assistance to the Customer, not to PCAs or Guests.  The      Customer and the Guest pay the paratransit fare, currently $2.00 per      trip.  The PCA rides free of fare.  The Manifest shall      indicate if the Customer is traveling on a particular trip with a PCA      and/or Guest. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Paratransit      is a shared ride service.  Therefore, the Routes shall include      multiple pickups and drop offs of Customers to and from destinations in      proximity to each other, as permitted by Vehicle      capacity.  Customers shall present to the Operator an AAR      identification card or in the case of applicants for AAR who are traveling      to certifier facilities, a certifier authorization letter issued by the      Authority. Customers who have been approved for the service but have not      yet received their AAR identification card shall present a personal photo      identification. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Trips      are scheduled in advance using a reservation and scheduling software      program, ADEPT.  Trip Tickets and a Manifests will be issued      electonically to the Contractor the evening before the Route is to be      performed. The Contractor shall print Trip Tickets and Manifests for its      use. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | Manifests      will include the following information for each trip      scheduled: |
|--------|----|-------------------------------------------------------------------------------------|

|   | · | Trip      ID Number; |
|--------|--------|----------------------|

|   | · | Scheduled      Pickup Time; |
|--------|--------|-----------------------------|

|   | · | Customer      name and identification number; |
|--------|--------|-----------------------------------------------|

|   | · | Pickup      and destination address and contact telephone  numbers; |
|--------|--------|---------------------------------------------------------------------|

|   | · | Scheduled      Pickup Time for the return trip, ifany; |
|--------|--------|--------------------------------------------------------|

|   | · | Specific      notations (PCA, Guest(s), Assistive Device, pickup location details,      etc.) |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | 1. | Service      animals shall be allowed to travel with the Customer and/or Guest at no      cost.  The AAR identification card will note that the Customer      travels with a service animal.  Pets are not permitted to travel      with any passenger, except in a petcarrier. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2. | The      Operator shall not deny service to any scheduled Customer, authorized PCA,      authorized Guest and authorized service animal.  If any Customer      is disruptive, violent or otherwise not conducting himself/herself in a      safe manner, the Operator shall contact the Dispatcher for instructions      and complete an Incident report, in the form set forth in Attachment      15. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      safety of Customers is of primary concern.  Pickup and discharge      of Customers shall not occur at the following  locations: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | within      a pedestrian crosswalk; |
|--------|--------|-------------------------------------|

|   | · | within      an intersection, except on the side of a roadway opposite a street which      intersects, but does not cross suchroadway; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | alongside      or opposite any street excavation that obstructs  traffic; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | under      conditions that obstruct the movement of traffic and in no instance so as      to leave fewer than ten (10) feet available for the free movement of      traffic; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | where      stopping is prohibited; |
|--------|--------|------------------------------------|

|   | · | within      a bicycle lane; |
|--------|--------|-----------------------------|

|   | · | within      horse drawn carriage boardingareas. |
|--------|--------|-------------------------------------------------|

|   | 1. | The      Authority will provide a one (1) time train the trainer instruction of all      of the requirements of daily reconciliations to representatives designated      by the Contractor. Any subsequent training shall be provided by the      Contractor. Incumbent Contractor’s shall not receive    training. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Authority will electronically provide Manifests and issue Insertions to      the Contractor.  The Contractor shall print two (2) copies of      the Manifests on Contractor supplied paper and print Trip Tickets on the      Authority supplied form..  The Manifests generally will be      available by 8:00 p.m. the evening before the scheduled      trips.  A sample manifest is provided in Attachment No. 10      “Sample Printed Manifest”.  A sample Trip Ticket is provided in      Attachment No. 9 “Sample Printed TripTicket”. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      Contractor shall on a daily basis reconcile all activity by entering Trip      Ticket and Manifest information into ADEPT. All reconciliation in ADEPT      shall be completed within three (3) calendar  days. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The      Contractor shall separate the Trip Tickets and Manifests, provide the      Authority with the originals, and retain the copies for its      records. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The      Contractor shall enter the following information into the ADEPT      system: |
|--------|----|---------------------------------------------------------------------------------------|

|   | · | Vehicle      odometer readings and pickup/drop off times for each  trip. |
|--------|--------|--------------------------------------------------------------------------|

|   | · | The      arrival time and Vehicle odometer reading for each Customer No Show and      No-Fault/No-Show. No arrival time shall be entered for a Contractor No      Show, however, the no show declaration time is to be    recorded. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      identification number of theOperator. |
|--------|--------|------------------------------------------------|

|   | · | The      Vehicle number. |
|--------|--------|--------------------------|

----

|   | · | Any      Insertions or Deletions. |
|--------|--------|-----------------------------------|

|   | · | Fares      collected and/or refusals by Customers and/or Guests to pay      fares. |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | Applicable      codes required within ADEPT. |
|--------|--------|----------------------------------------------|

|   | · | Pertinent      comments. |
|--------|--------|--------------------------|

|   | 6. | After      reconciliation data entry has been performed, the Contractor shall run an      error report and correct allerrors. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

| III. | DIVISION      OF RESPONSIBILITES BETWEEN THE AUTHORITY AND CONTRACTOR FOR START UP AND      OPERATIONS PHASES |
|------|---------------------------------------------------------------------------------------------------------------|

|   | 1. | Start      up consists of all of the work required to be performed to assure that      operations are fully ready to commence as  scheduled. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Contractor shall perform the tasks specified below in accordance with its      Authority approved start up plan.  The Contractor shall schedule      the tasks to assure their timely completion in order to timely commence      operations. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Hiring      of all key personnel including the Project Director, operations manager      and maintenance manager. Other key personnel with time/tasks dedicated to      start up shall also commence work in keeping with the start up plan. The      Project Director and other key personnel shall be hired and working on      site and available for meetings with the Authority within one (1) month of      the Notice of Award. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Obtain      NYS DOT Contract Carrier Operating Permit and all other City, State and      Federal permits and licenses necessary to conduct the business required in      this Contract. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Take      all steps necessary to secure the facility required to house and maintain      Vehicles and Non-Revenue Vehicles and to provide space for Contractor's      supervisory, administrative and operations personnel to operate the      service. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Procure      all of the equipment required for the proper operation of the service,      including all maintenance equipment, office equipment, communications      equipment (both land line and mobile), Contractor provided computer      equipment, and other equipment as needed.  Network hardware      shall be acquired, installed, andtested. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Complete      all procedural and training manuals, forms, operating instructions and      other documents necessary to the proper operation of the service. Manuals      shall include at minimum, Operator’s responsibilities and procedures,      substance abuse procedures, training manuals, maintenance procedures,      supervisor’s responsibilities and procedures, and safety procedures for      AAR service.  All manuals shall be forwarded to the Authority      prior to finalization. Any deficiencies noted by the Authority shall be      promptly corrected by Contractor.  All forms required by the      Scope of Work, if not provided by the Authority, shall be developed by the      Contractor and submitted to the Authority for  approval. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 8. | Hire      Operators, maintenance personnel, and all other employees and conduct all      other major preparations necessary to begin operation of the      service.  Execute subcontracts, if any and any other      administrative tasks. All personnel shall be hired and trained; procedures      shall be established; facilities and equipment tested and prepared; and      all other activities required for Contractor start up shall be      performed.  The Contractor shall recruit and provide sufficient      quantities of personnel, trained for duty, in the event that Contractor      personnel fail to report for duty and to accommodate start up and      personnel wash out. The Contractor shall phase the hiring of personnel to      ensure their availability on the first day of Revenue      Service.  The Contractor shall provide dates for the      availability of all personnel bycategory. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Install      a communications system that shall enable two-way communication between      Vehicles, Non-Revenue Vehicles, the operations/maintenance facility, and      the Command Center.  The Contractor shall provide a base station      radio and/or Nextel hook up that allows the Authority to monitor      performance and make emergency contact with the Dispatcher or      Operator.  If two-way radios are used, the Contractor shall      provide the Authority with three (3) receiver units, rooftop antennae,      necessary hardware and three (3) mobile units to allow the Authority to      monitor Contractor dispatch.  If Nextel, or other similar      equipment, is to be used, the Contractor shall furnish the Command Center      with six (6) Nextel or other approved units and a commensurate number of      desktop battery chargers.  The Contractor is responsible for the      maintenance of all two-way radio equipment including equipment provided by      the Contractor to the Authority. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10. | The      Contractor shall provide, install and maintain communications between the      Contractor’s operating base and each of the Vehicles and Non-Revenue      Vehicles used by the Contractor to provide paratransit service and the      other requirements of this Scope of Work.  The Contractor shall      identify to the Authority all radio frequency numbers used.  The      Contractor is responsible for all radio frequency licensing      fees. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11. | The      Contractor shall install and maintain any telephone service required under      this Contract and shall procure and ensure continued operations of all      two-way communication equipment, including repeaters and antennas for both      Vehicles and buildings mounted for both Contractor operated equipment and      equipment provided to theAuthority. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12. | The      Contractors shall coordinate with other Contractors whose existing      Contracts are not renewed or whose fleet size has  changed. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13. | All      other tasks identified by the Contractor in its Authority approved start      up plan are to be completed to provide a successful and timely start      up. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | During      the performance by the Contractor of the above tasks, the Authority will      work with the Contractor to provide information, answer questions, and      provide approvals necessary for the Contractor to complete its approved      start up plan. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Project Manager may require the Contractor start up team to meet weekly to      review start up activities. |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | 3. | Generally,      all meetings with Contractor personnel will be held at 33-00 Northern      Blvd., Long Island City, NY 11101. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The      Authority may provide personnel to accompany the Contractor to meetings      between existing and new Contractors to coordinate transition of service      from the existing to the newContractors. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The      Authority will provide the Contractor with typical run schedules within      one (1) month of Contract award to allow the Contractor to begin service      analysis, Operator picks (bids) and other related    activities. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | The      Authority will provide training for Contractor managers and supervisors in      the use of ADEPT prior to the date scheduled for start of      service.  The training shall be train the trainer      type.  The Authority will provide the Contractor with a copies      of the manual describing the procedures and processes specific to the use      of ADEPT.  The Contractor shall provide training for other      Contractor personnel.  The Contractor is authorized to make      additional copies of training materials provided by the Authority to the      Contractor's personnel. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | The      Authority will provide review and, where appropriate, approvals or      disapprovals of any plans or other items required to be submitted by the      Contractor to the Authority. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | The      Authority will provide the Contractor with a functioning ADEPT software system on      the Contractor’s PC hardware equipment prior to start of service. The      Authority will provide personnel to assist the Contractor as needed to      make ADEPT fully      operational. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | The      Authority will provide the Contractor with an adequate supply of      preprinted Trip Ticket forms to be used by the Contractor in providing      service. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10. | The      Contractor is prohibited from engaging in any marketing or advertising of      the service except for personnelrecruitment. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | Facilities      shall be provided by the Contractor and appropriately sized for the size      of the fleet to be operated and the number of employees required to      perform all Contract services.  The Contractor shall identify to      the Authority functions that shall be performed inhouse and those to be      subcontracted. Interior storage of Vehicles is encouraged. The facility      shall comply with all Federal, State and local safety requirements and      laws and other laws including but not limited to fire codes, building      codes, OSHA requirements and environmental regulations. The Contractor shall      obtain permits/approvals required to lawfully operate the facilities to be      used for this Contract. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | B. | The      Contractor shall determine the maintenance capabilities of each facility,      and may decide to locate maintenance at a central facility.  If      more than one (1) facility is operated by the Contractor, the cost of      shuttling Vehicles between facilities for maintenance will not be      reimbursed by the Authority. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | The      Contractor’s facility shall be located to minimize      deadheading.  The Authority will not reimburse deadheading in      excess of schedules. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | A      Contractor who plans to locate outside New York City is specifically      advised that he shall not be reimbursed for excessive      deadheading.  Contractors shall not be reimbursed for any      turnpike, bridge or tunnel tolls for deadheading to and from any      Contractor facility located outside of New York  City. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | Each      facility shall be sufficient to deliver the planned transportation and      maintenance service levels. |
|--|----|-------------------------------------------------------------------------------------------------------------------|

|  | F. | The      facility shall be either inside a secured building or a lighted, fence      secured parking lot. All furnishings, equipment and supplies are the      responsibility of the Contractor. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | The      Contractor is responsible for providing twenty-four (24) hour security of      the facility and twenty-four (24) hour response to any security incidents      at the facility. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | H. | The      Contractor shall be responsible for any work required to ensure that the      Contractor's communications system located at the Contractor's facility      provides thorough coverage of all five (5) New York City Boroughs,      including transmission and reception from the Command    Center. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | Each      Contractor is required to have a minimum of one (1) fax machine in each      dispatch area to be dedicated to transmitting documents to and from the      Authority. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | J. | Provision      for on-site fueling of Vehicles is preferred but not required. There shall      be no reimbursement for deadheading costs related to fueling Vehicles at      other than the Contractor'sfacility. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | K. | No      Vehicle or Non-Revenue Vehicle, operable or inoperable, shall be left      overnight on any public road or property not under the control of the      Contractor without the express authorization of the Authority. All      Vehicles shall be housed overnight at the Contractor’s facility with the      exception of Vehicles that are at Authority authorized repair      facilities. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | L. | The      Contractor shall make provision for on site Vehicle cleaning at its      facility. |
|--|----|---------------------------------------------------------------------------------------------|

|  | M. | The      Contractor shall be responsible for maintaining and repairing its      facilities to provide for a safe and professional operating environment.      Floors and walls shall be kept free of grease, oil and other fluids, as      well as tripping hazards. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | N. | All      parts, fluids, tires and other maintenance parts shall be kept in secure      rooms dedicated for those purposes.  Hazardous materials at the      facility shall be stored in compliance with all Federal, State and local      laws/regulations. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | O. | The      Contractor shall be solely responsible for arranging for and maintaining      all utilities for the Contractor’sfacility. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------|

|  | P. | In      the event of Contract termination by the Authority for any reason, the      Contractor shall permit the Authority to continue to use the Contractor’s      facility for a period of up to twelve (12)  months. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Q. | All      Contractor primary and satellite operating facilites shall be required to      have adequate emergency power generators to maintain full and      uninterrupted operation of the ADEPT computer system and all other system      communications including terminals and peripherals, as well as lighting,      fuel dispensing and security functions.  The generator shall be      hard-wired into the facility in such a manner that in the event of a power      loss, the generator shall switch on to maintain operation of the foregoing      systems and functions.  The generator shall remain functional at      all times during this Contract.  The Contractor shall perform      all scheduled and remedial maintenance as recommended by the OEM. Copies      of OEM manuals and maintenance records shall be available to the Project      Manager upon request. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | R. | The      Contractor’s fleet storage facility for all Vehicles to be used under this      Contract shall be inspected and approved by the Authority prior to award      of this Contract, or, where facilities are to be acquired or moved after      award, they shall be inspected and approved by the Project Manager prior      to Contractor commencing performance of services at the new      facility. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | S. | Any      facility used by the Contractor in the performance of the Contract shall      be subject to inspection and approval by the Authority. Facility      acquisition or rental shall be effectuated within ninety (90) days from      the Notice to Proceed, except as such period may be extended by the      Authority. The Contractor’s failure to secure an approved facility may be      grounds for termination of the Contract by the Authority.  No      payment for facility costs will be made until after the facility is      acquired. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Stratagen      ADEPT is the Authority’s current demand responsive online real time      scheduling and dispatching software system. ADEPT creates Routes and is      used during dispatch and reconciliation. The Authority has the right to      change the scheduling system to another similar system during the term of      the Contract. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | ADEPT      is used by Dispatch to monitor Vehicles, Routes and trips, record      Incidents, make changes, record completion of trips and adjust schedules      in response to situations as theyoccur. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3. | ADEPT      generates reports and forms.  Forms that are generated include      Trip Tickets and Manifests.  Reports are generated for multiple      purposes, e.g., service improvement, contract compliance, billing      documentation, etc. Samples of a Trip Ticket and a Manifest are provided      in Attachments 9 and 10. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Computers |
|----|-----------|

|   | 1. | The      Contractor is responsible for purchasing, maintaining, repairing all      personal computers/software and peripherals, and connecting to the      Authority wide area network during the Contract, the Contractor may be      required to replace computers/software and Peripherals as directed by the      Project Manager.  These replacements will be paid as a pass      through budgeted by the Authority.  The Contractor shall obtain      three (3) quotes for initial and/or replacement computers/software and      peripherals specified by the Project Manager from suppliers. The      Contractor shall submit the quotes to the Project Manager who will review      the quotations, select the supplier and give approval to the Contractor to      purchase the equipment. All computers/software and peripherals shall be      used only for Authority business.  The actual cost of the      equipment shall be paid to the Contractor under non-vehicle pass      through.  Minimum specifications, subject to change as required      by the Project Manager, include: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - 2.33/1333/4M Intel®  CoreTM 2 Duo E6550                                                                          | - Epson DFX-9000 - 9-pin printer, or equal                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| - GB DDR2-667 SYNC RAM PC2-5300- Nvidia XFX GeForce 8600 GT XXX Video Card, or equal | - HP LaserJet 4350N network printer 55 ppm    blk w/ Ethernet print server card, or equal |

|  | 2. | The      Authority will provide and maintain the file servers, as well as supply      instructions for the connection to the network and insure stability and      reliable connectivity. All local network hardware is subject to the      approval of the Project Manager. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | The      Authority will provide, through a lease in the form attached hereto as      Attachment 3, Vehicles and Non-Revenue Vehicles to be used by the      Contractor for service.  The Contractor will be leased either a      Ford Taurus, sample VIN 1FAFP53U47A168185 or Ford Escape Hybrid, sample      VIN 1FMCU59H08KC44766 or similar model Non-Revenue      Vehicles.  The Contractor shall pick up and return Vehicles and      Non-Revenue Vehicles at an Authority location as directed by the Project      Manager. The Contractor shall have all new Vehicles assigned inspected by      NYS DOT.  The Vehicles shall be lettered by the Contractor. The      Contractor shall be responsible for initial decals and maintenance of the      decals. In general, the spare factor will be 10% of the peak number of      Routes, excluding split Routes.  All Revenue Vehicles will be      furnished complete with fire extinguishers, safety triangles, first aid      kits, and will be in a condition so as to pass a NYS DOT      inspection. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | All      Vehicles and Non-Revenue Vehicles supplied as part of this Contract shall      be used solely for the performance of activities specified in this      Contract.  All Vans shall have a seven (7) years in service life      expectancy. All Sedans shall have a minimum of seven (7) years in service      life expectancy. For Non-Revenue Vehicles, life expectancy is to be      determined solely by the ProjectManager. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | A. | Vehicles      and Non-Revenue Vehicles shall be kept free of all Accident Damage (body      and mechanical) and shall be promptly repaired after such damage occurs.      No Vehicles with other than minor body damage shall be operated in Revenue      Service. All body damage shall be repaired within thirty (30) calendar      days of the date that the damage was incurred. Any Vehicle and Non-Revenue      Vehicle not meeting the Authority’s quality control standards may be      repaired by the Authority and the cost of repairs will be charged back to      the Contractor and/or the Authority may disallow the monthly per Vehicle      maintenance cost. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The      Contractor shall establish and follow a pre-trip/post-trip inspection      program involving a walk around inspection of the Vehicles and Non-Revenue      Vehicles each day before they are put into use and after return to the      Contractor’s facility. This inspection shall include, as a minimum, the      below listed items: |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Heating      or air conditioning systems asappropriate |
|--------|--------|--------------------------------------------------------|

|   | · | Oil,      other fluids |
|--------|--------|------------------------|

|   | · | Fuel |
|--------|--------|------|

|   | · | Belts,      hoses |
|--------|--------|-------------------|

|   | · | Seats,      wheelchair positions, tie downs |
|--------|--------|---------------------------------------------|

|   | · | Lights |
|--------|--------|--------|

|   | · | Doors |
|--------|--------|-------|

|   | · | Windshield      wiper/washer system |
|--------|--------|-------------------------------------|

|   | · | Emergency      equipment |
|--------|--------|--------------------------|

|   | · | Brakes |
|--------|--------|--------|

|   | · | Wheelchair      lift (shall be cycled daily) |
|--------|--------|----------------------------------------------|

|   | · | Tires/Wheels |
|--------|--------|--------------|

|   | · | Exhaust      system |
|--------|--------|---------------------|

|   | · | Mirrors |
|--------|--------|---------|

|   | · | Glass |
|--------|--------|-------|

|   | · | Horn |
|--------|--------|------|

|   | · | Body      damage |
|--------|--------|------------------|

|  | C. | In      addition to the defects or problems discovered in the inspection listed      above, any problems or defects detected and reported by Operators or      Customers while the Vehicles are in service shall be noted and recorded      through a written defect reporting system. The system shall include a      formal process for recording all problems, reporting all problems to      appropriate maintenance personnel and following up with a report when      repairs have been completed. A three (3) ply Operator Vehicle Condition      (OVC), Attachment 11, shall be used by      Operators for their pre-trip and post-trip inspections. The top copy shall      be given to the Contractor’s maintenance manager to effect      repairs.  Two (2) copies will be given to Contractor’s      operations manager, one (1) of which shall be available for Operator      review as prescribed in the 19-A regulations.  All copies shall      be filed by Vehicle number by theContractor. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | The      Authority's designated representative(s) shall, at all times, have the      right to inspect any Vehicle and Non-Revenue Vehicle being utilized by the      Contractor for this Contract. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | E. | The      Authority shall have the right, at its sole discretion, to perform      maintenance audits of Vehicles, Non-Revenue Vehicles and      equipment. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F. | The      Contractor shall maintain the Vehicles and Non-Revenue Vehicles in Service      Ready condition at all times. Service Ready shall mean that both Vehicles      and Non-Revenue Vehicles are clean, mechanically safe and reliable, and      all accessories are operable.  The Contractor shall perform,      maintain or repair the following: |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Daily      fueling from an acceptable clean fuel source with proper grade fuel as per      manufacturer’s specification |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | Daily      fluid checks |
|--------|--------|-------------------------|

|   | · | Exterior      Cleaning |
|--------|--------|------------------------|

|   | · | Interior      Cleaning including sweeping andmopping |
|--------|--------|------------------------------------------------------|

|   | · | Fan      belts |
|--------|--------|----------------|

|   | · | Flat      tires |
|--------|--------|-----------------|

|   | · | Replace      windshield wipers |
|--------|--------|--------------------------------|

|   | · | Hoses |
|--------|--------|-------|

|   | · | Bulbs      and lenses |
|--------|--------|-----------------------|

|   | · | Batteries      and fuses |
|--------|--------|--------------------------|

|   | · | Preliminary      road service |
|--------|--------|-------------------------------|

|   | · | Cycle      wheelchair lifts and maintain tiedowns |
|--------|--------|---------------------------------------------------|

|   | · | Maintain      body and fittings in presentable condition including replacement of      mirrors and fittings |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Maintain      equipment such as fire extinguisher and first aid  kit |
|--------|--------|----------------------------------------------------------------------|

|   | · | Present      Vehicles to DOT and Non-Revenue Vehicles to DMV for inspection on or      before the requisite dates with all systems operating and without body      damage. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | The      Contractor shall maintain an inventory of parts and fluids sufficient to      assure timely repairs for Vehicles and Non-Revenue Vehicles. Monthly, the      Contractor shall submit a Maintenance Performed / Supplies Usage Report,      Attachment No. 23. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | H. | The      Contractor shall be responsible for the proper use, care, maintenance and      towing of all Vehicles and Non-Revenue Vehicles used in the performance of      service. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | The      Contractor shall use its own maintenance facilities or those of an      Authority approved Subcontractor. |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|   | J. | The      Contractor shall maintain all Vehicles in compliance with      the Preventive Maintenance Program, Attachment 12.  The      Contractor shall maintain Non-Revenue Vehicles in accordance with the      manufacturer’s recommendations. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | K. | In      brief, the Preventive Maintenance Program requires that the Contractor      schedule every Vehicle for preventive maintenance at least every thirty      (30) calendar days (plus or minus three (3) calendar days) or every four      thousand (4,000) miles plus or minus five hundred (500) miles, whichever      occurs first. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | L. | Where      the Vehicle manufacturer's recommended maintenance program requires      additional maintenance not noted in the Preventive Maintenance Program,      Attachment 12, the additional items shall be included in the Preventive      Maintenance Program. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | M. | The      Contractor shall maintain a maintenance file for each individual Vehicle      and Non-Revenue Vehicle. A complete record of warranty repairs performed      on each Vehicle and Non-Revenue Vehicle shall be maintained. This      information shall be included in the warranty history for each Vehicle.      Warranty administration, including the collection of monies due for      warranty repair shall be the Contractor’s responsibility. These monies      will remain the Contractor’s. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | N. | The      Contractor shall utilize a computerized maintenance record system. Should      the Authority elect to, the system should allow access via modem      connection. The system shall be capable of providing complete, accurate      and up to date maintenance recordkeeping of Vehicles and Non-Revenue      Vehicles.  Records shall be kept for each individual Vehicle and      Non-Revenue Vehicle. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | O. | The      Contractor shall properly maintain operating heating and air conditioning      systems on all Vehicles.  Maintenance campaigns shall be      conducted by the Contractor to ensure these systems are operational at the      appropriate times of the year.  The Authority shall be notified      at the beginning and end of each campaign.  At a minimum,      heating systems shall be operable between September 15 and April 15 and      air conditioning systems shall be operable between April 15 and September      15. During winter service operation, the measured temperature anywhere      within the interior of a Vehicle shall not be less than 68 degrees      F.  During summer service operation, the interior temperature      shall not be greater than 75 degrees F. No Vehicle shall be operated in      Revenue Service for longer than one (1) calendar day without a properly      functioning heating or air conditioningsystem. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | P. | The      Contractor shall provide and maintain a reasonable inventory of any and      all parts necessary for the proper maintenance of all Vehicles,      Non-Revenue Vehicles and equipment used in the provision of the      service. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Q. | All      parts used during this Contract for the maintenance of Vehicles,      Non-Revenue Vehicles and equipment shall be new OEM or Authority approved      equivalent. The Contractor shall provide the original equiptment tire or      Authority approved equal for all Vehicles and Non-Revenue Vehicles. The      Contractor may contract for tire maintenance. In no case shall retread or      recapped tires be allowed. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | R. | All      Vehicles that are out of service due to mechanical reasons or damage shall      be immediately reported to the Authority. The report shall include the      reason the Vehicle is out of service, when the Vehicle developed the      problem, and when the Vehicle is to berepaired. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | S. | The      Price Schedule reflects labor and material prices to maintain the      fleet.  The Scope of Work requires scheduled and unscheduled      maintenance that, when followed, will maintain Vehicle reliability      throughout the seven (7) year service life.  To ensure the      proper investment in the fleet, a bumper to bumper, detailed inspection of      Vehicles will be performed during the fifth year of the service life of      each Vehicle.  The inspection will be jointly performed by the      Contractor’s maintenance manager and the Authority who together will      identify work to be performed on systems and components, including      replacements thereof, as necessary.  All identified work shall      be completed within thirty (30) days except as may be extended by the      Authority and shall be performed at no additional cost to the Authority as      a function of Vehicle maintenance. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | T. | The      Authority reserves the right to take over any portion of Contractor      provided maintenance (labor or materials) with written      notice.  Proper Vehicle maintenance is required to      ensure  safe, reliable Customer service levels. Failure to      provide appropriate maintenance after notification may result in the      Authority taking corrective action. Such corrective actions available to      the Authority include taking the Vehicle from the Contractor and providing      the required maintenance at a third party maintenance shop selected by the      Authority with the cost of the repairs charged back to the Contractor and      set off against applicable subsequent service invoice(s) and/or the      Authority may disallow the monthly per Vehicle maintenance      cost. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Contractor shall maintain the appearance and cleanliness of all Vehicles      and Non-Revenue Vehicles used in providing AAR service in order to provide      a positive image and appearance.  The Contractor shall not      operate any Vehicle with dirt readily apparent and visible from a distance      of twenty-five (25) feet. Reasonable cleanliness exceptions will be made      be made during inclement weather. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Contractor shall wash Vehicles in regularly spaced intervals at least      twice each week. |
|--------|----|------------------------------------------------------------------------------------------------------|

|   | 3. | Vehicle      interiors shall be swept and cleaned at least once daily.  Trash      shall be emptied at least once daily.  Interiors shall be fully      mopped, the windows and the Operator’s area shall be cleaned at least once      weekly. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The      Contractor shall perform a thorough interior scrub at least once      monthly. |
|--------|----|-----------------------------------------------------------------------------------------|

|   | 5. | In      the event the Contractor fails to maintain the cleanliness of any Vehicle      and Non-Revenue Vehicles in accordance with the terms of this Contract,      the Project Manager shall have the right to cause such Vehicle to be      removed from Revenue Service. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | The      Contractor shall establish a dedicated, on site, fuel tank or a fleet card      program for all fueling of all Vehicles used in Revenue Service subject to      the approval of the Project Manager.  The cost for all fuel used      in Revenue Service, excluding charges for any taxes for which the      Authority is exempt, will be paid by the  Authority. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | The      Contractor shall provide and maintain a dedicated fuel tank to be utilized      for fueling Vehicles. The Contractor shall not replace the fuel tank      without the approval of the ProjectManager. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Except      as otherwise provided herein, and subject to the terms and conditions of      the separate agreement with the Authority’s fuel supplier, the Authority      shall procure and pay for diesel fuel and/or gasoline for the      Work.  The Contractor is responsible for all other aspects of      fueling Vehicles operated under this Contract, including arrangements for      fuel delivery. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Pursuant      to its separate agreement with the Authority, the Authority’s fuel      supplier is required to make deliveries seven (7) days a week between the      hours of 8:00 a.m. and 3:00 p.m. in general to maintain a minimum      inventory of 1,000 gallons of fuel at the  facility. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | It      is the Contractor’s absolute obligation to ensure that its supply of fuel      is sufficient at all times.  In the event of any problem which      may arise with any fuel delivery by the Authority’s fuel supplier, the      Contractor shall take appropriate steps to ensure uninterrupted Revenue      Service. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The      Contractor shall maintain in good working order its fuel tank, its      automated fuel tank leak detection system and all equipment required for      on site fueling, and provide for prompt repair as needed at no additional      cost to the Authority. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | The      Contractor shall maintain strict controls to safeguard the integrity of      fuel usage and prevent fraud.  The Contractor shall ensure that      all equipment utilized in the on site fuel program is properly calibrated      to ensure the accuracy of fuel deliveries and fuel      dispensing.  The Contractor shall be liable for any unauthorized      fuel use. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | The      Contractor shall monitor the amount of each fuel delivery made to its fuel      tank to ensure the accuracy of the quantity and type of fuel invoiced by      the Authority’s fuel supplier in accordance with the following      procedure. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Immediately      prior to each fuel delivery the Contractor shall measure the number of      gallons in the fuel tank and record such measurement.  If the      Contractor has a Veeder Root system (or an equivalent system), such system      shall be used to take this measurement.  If not, the Contractor      shall take the measurementmanually. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Immediately      prior to each fuel delivery the Contractor shall ensure that the fuel      delivery truck meter is properly calibrated and  reset. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Immediately      upon completion of each fuel delivery the Contractor shall obtain from the      fuel supplier a record of the delivery truck meter reading of the amount      of fuel delivered. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Immediately      upon completion of each fuel delivery the Contractor shall measure the      number of gallons in the fuel tank and record such measurement. If the      Contractor has a Veeder Root system (or an equivalent system), such system      shall be used to take this measurement. If not, the Contractor shall take      the measurement manually. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | e. | The      Contractor shall then compare the pre-delivery measurement, the      post-delivery measurement and the delivery truck meter      reading.  The Contractor shall not sign for a fuel delivery      where the Contractor finds any discrepancy in amount of fuel      delivered. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | The      Contractor shall maintain a record of daily starting and ending pump      counter readings and daily starting and closing tank    balances. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Consistent      with Article 226 of the General Contract Provisions, the records required      by this section shall be retained by the Contractor for a period of three      (3) years from the termination of theContract. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10. | The      Contractor shall review the weekly invoice from the Authority’s fuel      provider for fuel delivered to Contractor.  Within five (5)      calendar days of the date of an invoice which the Contractor determines to      be accurate, the Project Director shall sign it attesting to its accuracy,      state the total quantity of fuel utilized over the month and send the      invoice by facsimile to the Project Manager.  If the invoice is      inaccurate in any respect, the Project Director shall alert the      Authority’s fuel supplier and the Project Manager of the discrepancy      immediately, make an appropriate written notation on the invoice, sign it      attesting to the accuracy of the invoice, subject to the notation(s),      state the total quantity of fuel utilized over the month and send the      invoice to the Project Manager. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Contractor shall insure that the card shall be used for fuel      only.  The card shall entitle the Contractor to purchase fuel at      the pump price or less. The Contractor shall review usage on a regular      basis through reports available through the fuel or fleet card      provider. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Authority will specify the type of fuel to be  provided. |
|--------|----|-------------------------------------------------------------------|

|  | A. | The      Authority may provide the Contractor with eligibility information that is      reasonably required by the Contractor to perform its obligations to      provide paratransit service as specified herein to the Customer. Under no      circumstances shall Contractor personnel disclose any information      concerning any Customer to anyone.  The Operator can report      medical or any other information to authorized medical assistance      personnel who report to the scene of an Accident or to the scene of any      medical emergency. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The      Contractor shall furnish all necessary Operators, Dispatchers and other      personnel needed to provide AAR service as specified in the Contract      Documents. Upon written notice to the Contractor that the Authority has      determined that a Contractor employee’s performance fails to meet the      requirements of the Contract, or otherwise seriously detracts from the      quality or efficiency of the service, the Contractor shall remove the      employee from assignment to thisContract. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | The      Contractor shall assign a designated person (i.e. the Project Director) to      this operation to ensure that all operations comply with Contract      requirements. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | D. | A      supervisor shall be available at the Contractor’s facility or by phone      during all hours of the operational day to make decisions or provide      coordination as necessary. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | In      selecting and fielding Operators, the Contractor shall conduct an adequate      background check on each person to be hired for this Contract to ensure      that he or she meets the standards and satisfactorily completes the      training set forth in Section XI below and is qualified to perform all of      the Operator functions required by this  Contract. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F. | At      a minimum, the Contractor’s management personnel shall include a full time      Project Director, an operations manager and a maintenance manager      throughout the term of the Contract. These managers are expected to spend      a majority of their working time on site, in the Contractor's facility.      Should any key personnel position(s) be vacated for a month or more and      failing demonstration of a reasonable good faith effort to refill the      position(s), the Contractor’s monthly payment may be adjusted downward to      reflect the salary of the vacant position until such time as the position      has been filled.  The initial and any replacements for the      Project Director, operations manager and maintenance manager shall be      approved by the Authority. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | The      Project Director shall be responsible for all aspects of the Contractor's      operation. This person shall not hold any other position in the operation      or any other operation. The Project Director shall have the full authority      to independently make any decisions required for the safe and efficient      operation of the service. The Project Director shall have at least three      (3) years experience in the management and supervision of paratransit      service or other specialized transportation services. An additional three      (3) years of fixed route transportation management experience is      desirable. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | H. | The      operations manager shall be dedicated 100 percent to overseeing the day to      day operation of the service. The operations manager shall have at least      three (3) years experience in the management and supervision of demand      responsive transportation service. An additional two (2) years of fixed      route management experience isdesirable. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | The      maintenance manager shall be dedicated 100 percent to overseeing the      proper maintenance of Vehicle and Non-Revenue Vehicles. The maintenance      manager shall have at least three (3) years experience in the management      and performance of fleetmaintenance. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | J. | A      detailed resume of not more than two (2) pages for each position shall be      submitted for the proposed Project Director, operations manager and      maintenance manager. This resume shall include at least three (3)      professional references with current telephone numbers. The individuals      selected by the Contractor as the Project Director, operations manager and      maintenance manager shall require initial and continued concurrence of the      Authority. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | K. | The      Project Director and, in his or her absence, the operations manager shall      be available during all hours of service to make decisions and to provide      coordination with the Authority. The Contractor shall provide the Project      Director and operations manager with cellular phones sufficient to allow      communication anywhere primarily within the New York City area. The resume      of temporary replacement personnel shall be provided to the Project      Manager for concurrence prior to assumption of  duties. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | L. | The      Contractor shall designate a knowledgeable employee to act as Project      Director, operations manager or maintenance manager whenever any of these      managers has a leave of absence for any reason of more than one (1)      week. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | M. | Dispatchers      responsible for controlling the Operators and the performance of the fleet      shall be on duty, at the Contractor’s facility available and within      communication range at all times when Vehicles are in      service.  Dispatch personnel shall be trained in the use of      ADEPT by      Contractor's personnel who have been trained by the Authority prior to the      assumption of their duties. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | N. | The      Contractor shall have Road Supervisors in sufficient number to ensure      planned and random field supervision of Operator performance and to      investigate Accidents and provide assistance in the event of a Road Call.      Road Supervisors shall be trained by the Contractor in Accident      investigation procedures and be available to investigate an Accident site      at all hours that the service is inoperation. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | O. | All      Contractor mechanics (maintenance personnel) shall be trade certified and      thoroughly trained and retrained to complete the maintenance tasks      required by this Contract.  Mechanics, mechanic helpers, service      personnel performing post-trip maintenance and/or fueling shall be      dedicated to this Contract and shall not share duties with other fleet      services. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | P. | The      Contractor shall ensure that Operators hired for this service are reliable      and able to drive safely. Operators shall be employees of the      Contractor.  The use of an independant contractor or other such      arrangements is prohibited for this position. The Contractor is required      by the New York State Department of Motor Vehicles (NYS DMV) and by this      Contract to comply with the requirements of Article 19-A of the Vehicle      and Traffic Law (VTL) and the NYS DMV regulations published at 15 NYCRR      Part 6, as well as all other applicable Federal, State and local      laws/regulations. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Q. | Throughout      the term of this Contract, the Contractor shall comply with the the      Authority approved FTA Drug & Alcohol Testing Program for this      Contract. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | R. | Management,      Road Supervisors, Dispatch supervisors, Dispatchers, Operators and any      other staff that interface with Customers shall be provided sensitivity      training in accordance with theContract. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | S. | The      Contractor shall provide proper training and retraining for all      paratransit personnel.  The Contractor shall, as necessary,      update all manuals, including training manuals and procedures and assure      that all of its personnel are properly trained for the functions assigned      to them. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | T. | Operators      shall not be placed into Revenue Service until an appropriate Hire/Drop      Notice, Attachment 18, has been submitted by the Contractor to the      Authority and the Operator is approved for Revenue Service by the      Authority. When an Operator resigns or is terminated by the Contractor, a      Drop/Hire Notice indicating the Operator has resigned or been terminated      shall be provided to the Authority within twenty-four (24)      hours. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | U. | The      Contractor is solely responsible for any union/labor agreements required      in the operation of this service. The Contractor is responsible for      entering labor agreements and maintaining labor agreements where required      that enable the Contractor to perform the work of this Contract in keeping      with all its terms. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | V. | The      Contractor is solely responsible for administering Contractor employee      discipline.  It is strongly recommended that the Contractor      institute a progressive disciplinary system which includes employee      reinstruction, suspension and termination as  appropriate. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Valid      New York State (NYS) Commercial Driver’s License with Passenger      Endorsement; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | Unrestricted      license in effect for three (3)years; |
|--------|--------|---------------------------------------------------------|

|   | · | Shall      be at least 21 years old; |
|--------|--------|--------------------------------------|

|   | · | New      York State Vehicle and Traffic Law Article 19-A and 21 NYCRR Part 6 of the      NYS DMV regulations, including the physical examination      requirements. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | Operators  shall      not have any one (1) of thefollowing: |
|--|----|-----------------------------------------------------------------------|

|   | · | More      than four (4) points accumulated within three (3) years immediately      preceding employment.  Allowance shall be given for taking the      NYS DMV Defensive Driving Course’s reduction in points accumulated during      the eighteen (18) month period preceding the date of hire. The Operator’s      abstract shall reflect the point reduction at the time of      hire; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      conviction for driving any vehicle while impaired or intoxicated within      the five (5) years immediately preceding  employment; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Any      punitive suspension or revocation of license during the three (3) years      immediately preceding employment; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | Three      (3) or more moving violations within the three (3) years immediately      preceding employment; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | Three      (3) or more at-fault Accidents within the three (3) years immediately      preceding employment; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Any      violation issued in connection with an Accident within the three (3) years      immediately preceding employment. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | Satisfactory      results from a drug and alcohol test administered in accordance with FTA      regulations; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | Satisfactory      results from a NYS Department of Criminal Justice Services’ and Federal      Bureau of Investigation fingerprint checks in accordance with New York      State Department of Motor Vehicles, Commissioner’s Regulations Part 6,      Special Requirements for BusDrivers; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Abilty      to speak, read and write the Englishlanguage; |
|--------|--------|-----------------------------------------------------------|

|   | · | Ability      to read maps; |
|--------|--------|----------------------------|

----

|   | · | Familiarity      with the five (5) Boroughs of New YorkCity. |
|--------|--------|--------------------------------------------------------------|

|   | 1. | If      an Operator is convicted of a moving violation that was pending at the      time he/she was hired: |
|--------|----|------------------------------------------------------------------------------------------------------------|

|   | a. | The      Operator shall be terminated, if, as a result of this conviction he/she no      longer meets the requirements stated in Paragraph  X.B; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The      Operator shall be suspended a minimum of five (5) working days if, despite      this conviction the Operator continues to meet the requirements stated in      Paragraph X.B. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | Operator      training shall meet generally accepted paratransit industry standards and      shall include at a minimum, instruction in the areas described      below.  The Contractor shall identify a specific curriculum and      training time for each curriculum component.  The Authority      reserves the right to approve or disapprove training curricula and      training manual(s). When deemed necessary by the Authority, the Contractor      may be directed to add, delete or amend components of the      training.  The Contractor shall develop, issue and maintain an      adequate number of all trainingmanuals. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The      Contractor shall provide a minimum total of thirty-two (32) hours of      behind the wheel instruction with a trainer or experienced Operator. Eight      (8) hours shall be with the trainer or supervisor. Twenty-four (24) hours      shall be in service training with an experienced Operator. During the      behind the wheel instruction the following subjects shall be      covered: |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Operator’s      Vehicle Condition Report; |
|--------|--------|-------------------------------------------------|

|   | · | Routes/Services      and area street network; |
|--------|--------|-----------------------------------------------|

|   | · | Map      Reading; |
|--------|--------|-------------------|

|   | · | Fare      structure and collection; |
|--------|--------|-------------------------------------|

|   | · | Manifest      reading and completion; |
|--------|--------|---------------------------------------|

|   | · | System      Familiarization. |
|--------|--------|------------------------------|

|  | C. | In      addition, the Contractor shall provide the  following: |
|--|----|----------------------------------------------------------------|

|   | · | A      minimum of eight (8) hours of Vehicle orientation to include Pre-Trip and      Post-Trip Vehicle Inspection, use of communication systems, wheelchair      lift and securement device operating procedures, Customer assistance      techniques, FTA Substance Abuse Program and Authority procedures and      policies as they apply to thisContract; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An      eight (8) hour Department of Motor Vehicle approved Accident prevention      course.  See Attachment 13 for approved    providers; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      minimum of eight (8) hours of instruction in breakdowns and Accident      reporting procedures, emergency procedures and practices, including the      emergency evacuation of Vehicles; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      minimum of eight (8) hours to better identify medical      emergencies.  Operators shall be required to receive training in      first aid and proper response (as defined by the Contractor) to emergency      medical needs of passengers; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | A      minimum of sixteen (16) hours of certified instruction in Customer and      passenger sensitivity and interaction with all persons including persons      with disabilities, persons of diverse races, cultures and sexual      orientation, the elderly andchildren. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | The      Contractor shall provide within fourteen (14) calendar days prior to or      after the anniversary date that each Operator began Revenue Service a      minimum of eight (8) hours behind the wheel training, and a minimum one      (1) hour evaluation of the Operator’s driving  skills. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | A      continuing program of Operator safety and instruction shall be instituted      by the Contractor and fully detailed and maintained in a Training      Policy/Procedure Manual. Each Operator shall receive a minimum of sixteen      (16) hours of retraining each year.  A required component of      this retraining shall be Customer and passenger sensitivity and defensive      driving. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F. | It      shall be the sole responsibility of the Contractor to fully train all      Operators. The Authority will only become involved in Operator training if      the Authority determines that the Contractor is not doing proper, thorough      training.  In such case, the Contractor may be required to pay      the Authority for expenses incurred by the Authority related to the      provision of such training. In this event, the Contractor shall be      responsible for the payroll costs of Operators attending the Authority      directed training. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | During      the course of training, Operators shall be thoroughly trained in the      requirement to offer and provide assistance to Customers both on and off      the Vehicle. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | At      all times while on duty, Operators shall be neatly dressed and well      groomed. Operators shall wear uniforms prescribed and provided by the      Contractor and approved by the Authority at all times while the Operator      is in service. The uniform shall consist of a white blouse or shirt, with      pocket, dark blue slacks or trousers, a dark baseball type cap and,      depending upon the season, a dark blue jacket and other dark blue outer      garments. Dark blue uniform style A-line skirts, culottes or dress shorts      with dark blue socks will be permitted. Dress shorts will be permitted to      be worn during the period of May 1st      through September 30th.      Shoes shall be black and serviceable having flat, nonskid soles. No high      heels, sneakers, or open sandals shall be worn. Tee shirts are prohibited.      At no time shall hair or anything else be worn so as to obscure vision or      create a safety hazard. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | While      in Revenue Service no Operator shall have or display any insignia, patch,      or emblem other than those supplied by the Contractor and approved by the      Authority. Each Operator shall wear picture identification supplied by the      Contractor to be worn on the Operator’s shirt, blouse or jacket in a      manner visible to Customers and approved by the Authority. The badge shall      contain the names of the Contractor and the Operator, and the letters      AAR. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | Each      Operator shall carry a timepiece that keeps accurate time and a Hagstrom      or approved equivalent five (5) Borough street map.  Each      Operator is to verify the time with the Dispatcher at least once each day      prior to leaving the facility or during shift change.  An      Operator shall carefully read each comment noted on the Manifest to insure      that he/she is at the correct pickup location.  If at any time      the Operator is unable to find a location, he/she shall promptly contact      the Dispatcher. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | D. | Operators      shall report to the Dispatcher any service problems as they      occur.  These are to include but not be limited to: Accidents;      incidents; injuries; Vehicle condition; Manifest error; schedule adherence      problems; Customer No Show; traffic condition; Customer problem; excessive      Customer assistance requirement; Customer identification problem; fare      payment problem and unusualoccurrences. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | Operators      shall record the time and mileage of Vehicles at the time of Pull-Out and      Pull-In. |
|--|----|--------------------------------------------------------------------------------------------------------|

|  | F. | Operators      shall be required to perform the Routes as shown on the      Manifests.  Deviation from the sequence without prior approval      from the Dispatcher is sufficient grounds to request permanent removal of      any Operator from service. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | If      the Operator arrives prior to the Scheduled Pickup Window and the Customer      is not ready to travel, the Operator cannot require the Customer to board      prior to the Scheduled Pickup Time. The Operators shall      report any arrival twenty-five (25) minutes later than the Scheduled      Pickup Time to the Contractor's Dispatcher. The report shall be made as      soon as the Operator can foresee a latearrival. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | H. | Prior      to drop off, the Operator shall provide the Customer with their Trip      Ticket. The Operator shall assist any Customers unable to sign a Trip      Ticket by signing for them and noting on the ticket that the Operator has      done so. In addition, a PCA may sign the Trip Ticket for the      Customer. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | Upon      arrival at the pickup or drop off location, the Operator shall record the      time on the Manifest. The Operator shall exit the Vehicle to locate the      Customer and offer any assistance that the Customer may require in      boarding and exiting the Vehicle as authorized in this      Contract. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | J. | In      the event that the Operator cannot locate a Customer, the Operator shall      immediately contact the Dispatcher for assistance, including confirmation      of the pickup location. The Dispatcher shall attempt by telephone to      locate the Customer and shall provide further instructions to the      Operator.  The Operator shall not leave the pickup location      until authorized to do so by the Dispatcher.  Prior to leaving      the pickup location, the Operator shall note the Customer No Show on the      Trip Ticket and Manifest, and complete and sign the Customer No Show Form,      Attachment No. 22. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | K. | Operators      shall call out the name of the Customer at each pickup and drop off      location. |
|--|----|---------------------------------------------------------------------------------------------------|

|  | L. | The      Contractor shall devise a procedure to ensure that the Operators wait for      a Customer when the Operator knows that the Customer is on the way to the      Vehicle. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | M. | Operators      shall notify the Dispatcher at each pickup and drop off time if they are      more than twenty-five (25) minutes behind  schedule. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | N. | Operators      shall ask a Customer to present an AAR photo identification card. If the      Customer does not have his or her AAR photo identification card, an      alternate photo identification shall be allowed.  If the      Customer has no photo identification, the trip shall not be provided. The      Operator shall notify the Dispatcher in order that the appropriate      comments are entered in the tracking log. For Customers travelling to and      from eligibility centers, the Operator shall ask the Customer to present      the letter from the Authority authorizing the  trip. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | O. | An      Operator is required to know the paratransit fare at the time he/she      begins Revenue Service and to be advised as to any changes in the fare      communicated by the Authority to theContractor. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | P. | The      Operator shall use the interior lighting of the Vehicle when alighting all      Customers at night to provide for a safe ingress and egress from the      Vehicle. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Q. | The      Operator shall operate heating and air conditioning systems to provide for      the comfort of Customers. The Operator is not authorized to open windows      for ventilation in lieu of air conditioning unless Vehicle air      conditioning systems have failed. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | R. | Operators      are prohibited from soliciting, accepting or in any way encouraging      payment of a tip, gratuity, additional payment or any service from any      Customer at any time. Engaging in such conduct is grounds for immediate      removal from service. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | S. | Operators      shall at all times be courteous to Customers.  Operators shall      at all times comport themselves      as they have been trained to do in the sensitivity training provided by      the Contractor. Any inappropriate behavior of the Customer shall be      reported to the Dispatcher. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | T. | If      a Customer is required to travel with a PCA as shown on the Manifest and      is not accompanied by the PCA, the Operator shall not provide the      ride.  The Operator shall notify the Dispatcher in order to      ensure that the appropriate comments are entered into the track log. When      the Operator’s experience with a Customer who travels without a PCA leads      him/her to conclude that the individual cannot travel unattended, the      Operator shall report the circumstances to the Dispatcher.  The      Contractor shall notify the Authority for follow up and further      instructions. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | U. | In      the event of a medical emergency, the Operator shall immediately pull the      Vehicle out of traffic and notify the Dispatcher of the emergency. The      Operator shall provide any first aid assistance reasonably required. The      Operator shall stay with the Customer until emergency assistance      arrives. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | V. | In      the event that any Customer engages in any illegal act or other conduct      that is unsafe to himself/herself or any others on board the Vehicle, or      strikes or otherwise abuses the Operator or any other Customer or      passenger, the Operator shall, at the earliest safe moment, report the      incident to the Dispatcher forinstructions. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | W. | Operators      shall operate wheelchair lifts from outside of the Vehicle using the      remote device. Operators shall provide assistance to Customers who use      Assistive Devices in entering and exiting the lift platform and the      Operators shall know how to operate the wheelchair lift      manually. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | X. | Operators      are prohibited from going inside of buildings and from providing      assistance to persons attempting to navigate more than one (1)      step.  Operators found to be entering residences shall be      removed from AAR service. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Y. | Operators      shall require all Customers on board the Vehicle to observe rules of      carriage to include: no smoking; no drinking of any beverages; no eating,      no standing while Vehicle is in motion; no person shall put a wheelchair      in motion, occupied or unoccupied, while the Vehicle is moving; no person      other than the Operator shall be allowed to operate the Vehicle or the      Vehicle's communication system or wheelchair lift; no person shall be      allowed to operate a radio, TV or any other such device that can be heard      by others on the Vehicle. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Z. | Operators      shall not smoke, play radios, televisions or any other such devices while      on Vehicles.  Operators shall not consume food or beverage on      the Vehicle while in Revenue Service.  If food and beverages are      consumed onboard during a service break, the Operator shall dispose of the      trash in an appropriate waste receptacle off the Vehicle prior to      recommencing Revenue Service. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | AAR      service shall be operated on a door to door basis.  This      requirement applies only to the Customer, not to PCAs and      Guests. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | Operators      shall be ready, willing and able to offer assistance to every      Customer.  If the Customer accepts the offer of asistance, the      Operator shall provide boarding and exiting assistance from the front of      the Vehicle.  If the Customer refuses assistance, the Operator      shall stand nearby in the event assistance is necessary.  All      Customers who request or require the use of the lift shall be assisted by      the Operator in boarding and exiting the lift. All Customers shall be      assisted in boarding or exiting by lift.  Customer assistance      includes fastening and unfastening safety belts and wheelchair tie downs.      For Customers with PCAs, the PCAs are responsible for providing all      assistance except boarding and deboarding from the wheelchair lift and the      securement of the wheelchair orscooter. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | Operators      shall assist Customers boarding and exiting the Vehicle and while inside      the Vehicle.  Operators shall attempt to locate a Customer who      is not waiting at the pickup location at the scheduled time, by verifying      the pickup location, exiting the Vehicle, visually scanning the area, and      calling out the Customer’s name. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | Customers      boarding in three (3) wheeled scooters may be requested but cannot be      required to transfer to a seat.  Operators are required to help      in the transfer if the transfer can be made without lifting or carrying      the Customer, both of which actions are strictly    prohibited. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | Operators      shall carry up to two (2) bags or parcels on and off the Vehicle, not      exceeding forty (40) pounds total. |
|--|----|------------------------------------------------------------------------------------------------------------------------------|

|  | G. | Operators      shall help Customers secure portable oxygen bottles and other devices      necessary to the Customer’stransport. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------|

----

|  | H. | For      the safety of all Customers and other passengers, Operators are not      required to assist Customers more than one hundred (100) feet from the      Vehicle or provide assistance that would cause the Operator to lose sight      of the Vehicle. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | Generally,      a Customer may bring an infant seat on board when traveling with a child      who is under forty (40) pounds or under one (1) year of age. The child is      considered a Guest of the Customer. PCAs and Guests may not bring children      or others with them.  The Vehicle is not equipped with infant      seats. Operators shall help secure infant seats brought by      Customers.  If no infant seat is brought, the infant shall ride      on the Customer’s lap, or if the Customer is accompanied by a PCA, on the      PCA’s lap. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | J. | Operators      are required to give oral directions and provide physical assistance to      persons using wheelchair lifts with or without a    wheelchair. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | K. | In      the event of an Accident or Vehicle breakdown that prevents an Operator      from being able to complete the scheduled trips for that tour, the      Contractor shall notify the Authority immediately and shall have one (1)      hour to send a replacement Vehicle to complete the remaining      tour.  If the Contractor is unable to dispatch a replacement      Vehicle within the one (1) hour standard, the trips that would have been      delivered shall be considered Contractor No  Shows. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | The      Contractor shall ensure that a Dispatcher or other supervisor capable of      acting on behalf of the Contractor’s Project Director is on duty at all      times that any Vehicle is scheduled to be in service and to ensure proper      Pull-Out and Pull-In of Vehicles.      Dispatch shall ensure that Vehicles operate in accordance with the      schedules unless otherwise instructed by the Command    Center. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The      Dispatcher shall be required to inspect all Operators for fitness for duty      before they are allowed to operate aVehicle. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | The      Dispatcher or other supervisor designated by the Contractor shall be      required to provide Operators, prior to their departure from the facility,      with all materials necessary to perform their work. This shall include      Vehicle keys, an Operator clipboard with Trip Tickets, the Manifest and      any special instructions. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | The      Contractor shall provide and maintain a means of direct communication      between Dispatch and the CommandCenter. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------|

|  | E. | The      Dispatcher shall provide to the Command Center information concerning      service and receive and act upon instructions from the Command Center,      including trip Insertions. If available the Dispatch Liason shall perform      this fuction. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F. | The      Dispatcher shall maintain Vehicle Pull-Out and Pull-In records. The      Dispatcher shall record the Pull-Out and Pull-In times of each Operator on      each Manifest. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | G. | The      Dispatcher shall have copies of all Manifests for work assigned during the      day in the event of an ADEPTfailure. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------|

|  | H. | The      Dispatcher shall annotate to the ADEPT system Incidents. Annotations shall      include but not be limited to Vehicle breakdowns, radio failures, Late      Pickups or drop-offs, Customer or Contractor No Shows, substitution of      Operator or Vehicle for assigned Operator,etc. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | The      Dispatcher shall immediately report to the Command Center any problems      with any Customer or other passenger, such as misbehavior or abusive      conduct, requests for assistance beyond those required by the Contract,      Customers who do not have appropriate identification, and all other      Incidents which the Operator is required to report to the      Dispatcher.  The Dispatcher shall relay instructions from the      Authority in response to identified problems to  Operators. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | J. | The      Dispatcher shall request and accept instructions from the Command Center      concerning any service problem. |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

|  | K. | The      Dispatcher shall receive from the Command Center notices of cancellations      of scheduled trips, Insertions, and other changes in Vehicle      schedules.  The Dispatcher shall relay the information to the      Operator and the Dispatcher shall record the information in      ADEPT. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | L. | The      Dispatcher is required to communicate with each Operator in Revenue      Service minimally every sixty (60) minutes. The Dispatcher shall provide      updates to the Command Center minimally every sixty (60)      minutes.  These updates include but are not limited to, Vehicle      location and loading, traffic conditions, Vehicle condition, routing      and schedule adherence. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | M. | The      Dispatchers shall be proactive in ensuring On Time Performance of Routes      by continuously monitoring of the progress of the Routes; initiating      actions to recover lost time, such as moving trips between proximately      located Vehicles and contacting the Command Center to determine whether      trips can be moved to anotherContractor. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | N. | The      Dispatcher shall coordinate road service and/or towing service, if      required for an in service breakdown or  Accident. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------|

|  | O. | The      Dispatcher shall not dispatch a spare Vehicle under any circumstances      without permission from the CommandCenter. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------|

|  | A. | The      Contractor shall provide Dispatch Liaison(s) at the Command Center or in      the field who have extensive Dispatch/Supervisory experience and are fully      knowlegeable with operations and the ADEPT system. Dispatch Liaison(s) are      in addition to the normal Dispatch and Supervisory staffing      levels.  Dispatch Liaison(s) are subject to prior Project      Manager approval. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Act      as a liaison between the Command Center and Dispatchers to ensure timely      ADEPT updates; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | Assist      the Command Center in providing Customers with timely trip information      regarding scheduled pickups; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Work      in tandem with the Dispatchers on certain Dispatch    functions; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | Ensure      quality of on-street service; |
|--------|--------|-------------------------------------------|

|   | · | Perform      Accident, event, and supervisory review of field operation and      staff. |
|--------|--------|-----------------------------------------------------------------------------------------|

|  | C. | When      available, the Dispatch Liaison shall be the principal point of contact      between the Contractor and the Command Center for questions and concerns      on particular trips during operations. The Dispatch Liaison shall receive,      accept and act on instructions from the  Authority. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | The      Dispatch Liaison shall communicate with the Dispatchers and Operators in      service to ensure that the ADEPT system is updated every sixty (60)      minutes.  These updates include Vehicle location and loading,      traffic conditions, Vehicle condition and trip      disposition. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Dispatch Liaison shall be proactive to ensure On Time Performance of      Routes. The Dispatch Liaison shall monitor the progress of Vehicles,      initiate actions to recover lost time, move trips between proximately      located Vehicles; and interface with other AAR Contractor Dispatch      Liaison’s and/or Command Center to determine whether trips can be moved to      or from another AAR Contractor; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Monitoring      on-street and Operator performance to insure service      quality.  This may include Operator reinstruction and      discipline. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F. | The      Dispatch Liaison shall work with the Dispatcher to coordinate Road Calls      and/or towing service for an in service breakdown or    Accident. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | G. | Customers      call the Command Center for pickup information. In the event the Command      Center does not have up to date information concerning scheduled pickups,      the Customer’s call will be forwarded to the Dispatch Liaison. The      Dispatch Liaison shall coordinate the pickup with the Operator, Dispatcher      and Customer. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | H. | The      Dispatch Liaison shall sign in and out at the start and end of their tour      and at the start and end of their lunch. Meal periods shall be thirty (30)      minutes. Coverage is not required by Dispatch Liaison for the following      holidays: New Year’s Day, Martin Luther King’s Birthday, President’s Day,      Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day,      Veteran’s Day, Thanksgiving Day, The day after Thanksgiving Day, Christmas      Eve Day, Christmas Day and New Year’s EveDay. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | The      Contractor shall insure that Dispatch Liaison(s) report to a designated      field location or the Command Center located at 33-00 Northern Blvd., Long      Island City, NY or other Command Center location. If the Dispatch Liaison      scheduled to report is unavailable, the Contractor shall cover the tour      with an alternate Dispatch Liaison.  A Dispatch Liaison shall be      required Monday through Friday for two (2) tours per day consisting of two      8-hour tours for Contractors with less than 150 Vehicles; or one 8-hour      tour and one 10-hour tour for those Contractors with 150 Vehicles or more.      The Authority shall have the right to eliminate the Dispatch Liaison      position on thirty (30) days prior written notice to the      Contractor.  In such event, the Non-Vehicle Fixed Costs, Item 5      of the Price Schedule shall be reduced by the then-current amount being      paid by the Authority for the Dispatch Liaison  positions. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | A. | The      Contractor shall have sufficient, dedicated Road Supervisors to ensure      field supervision, planned and random, of Operator      performance. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. |  The      Contractor shall have sufficient numbers of qualified 19-A examiners to be      in compliance with NYS VTL Article 19-A and NYS DMV regulations, 15 NYCRR      Part 6. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C.  |  The      Contractor shall ensure that all Road Supervisors have a CDL with      passenger endorsement and be 19Acertified. |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------|

|  | D.  | Road      Supervisors shall make an in service check of every Operator at least once      each month. Road Supervisors shall document and submit these in service      checks on the Authority approved in service Operator check form,      Attachment 26.  The Road Supervisor shall observe the Operator’s      perfomance for all items on the form and complete the entire form for each      in service check. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | Road      Supervisors shall be trained by the Contractor in Accident investigation      procedures and be available to investigate an Accident site at all hours      that the service is in operation. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F. | Road      Supervisors shall be available while any Vehicle is in service in the      event of a Road Call. |
|--|----|------------------------------------------------------------------------------------------------------------|

|  | G. | Road      Supervisors shall provide increased supervision and checks of a particular      Operator or a particlar aspect of the service, if requested by the      Authority. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | H. | As      required by the Authority, Road Supervisors may be required to coordinate      pickups and drop-offs at scheduledevents. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------|

|  | A. | The      Contractor shall accurately keep, complete, and/or submit trip      reconciliation data, invoices and all other paperwork as required by and      within the time periods set forth in the Scope of Work, Attachment No.      1. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | In      addition to reporting information specified in other Sections of this      Scope of Work, the Contractor shall provide to the Authority the documents      and reports specified in this Section within the specified      frequency. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Supporting      documentation for monthly billing within fifteen (15) business days of the      end of the month; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | Customer      signed Trip Tickets within three (3) business days of    service; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Completed      Manifests, including Operator name and Vehicle number, within three (3)      business days of service; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Preventative      Maintenance Worksheet, Attachment12; |
|--------|--------|--------------------------------------------------------|

|   | · | Road      Call Forms within three (3) business days, Attachment  14; |
|--------|--------|----------------------------------------------------------------------|

----

|   | · | Accident/Incident      Reports within twenty-four (24) hours of the occurance, Attachment      15; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | National      Transit Database (NTD) Safety and Security Form on a monthly basis,      Attachment 16; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | Driver      Hire/Drop Notice – Driver Hire Notice shall be submitted and approved      prior to an Operator being placed in Revenue Service. The Drive Drop      Notice shall be submitted immediately upon separation form the Contractor.      Attachment 18; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Midnight      Fleet Verification Report on a daily basis, Attachment  19; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | Completed      Customer No Show Form on a monthly basis, Attachment  22; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | Maintenance      Performed/Supplies Usage Report on a monthly basis, Attachment      23; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | FTA      Drug and Alcohol Testing Program form on a monthly basis, Attachment No.      24; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | Other      information as deemed appropriate by the Authority summarizing the month's      activities and overall systemperformance. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | In      addition to the above mentioned reports, the Contractor shall keep up to      date and accurate records of the following information throughout the term      of this Contract, and shall, at the request of the Authority, make such      records available to the Authority: |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Operator      Pre-Trip and Post-Trip Vehicle Inspection logs, and Operator Vehicle      Condition (OVC) Cards, Attachment No.11; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Employee      payroll reports; |
|--------|--------|--------------------------------|

|   | · | Vehicle      maintenance records; |
|--------|--------|-----------------------------------|

|   | · | Operator      records demonstrating compliance with all qualifications and training      requirements of this Contract and of applicable Laws and      regulations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | All      records and reports required to be in compliance with the approved FTA      Drug and Alcohol Testing Program; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | Other      records relating to performance of this  Contract. |
|--------|--------|---------------------------------------------------------------|

|  | A. | The      Authority shall be notified of all Accidents and      Incidents.  Completed Daily Accident/Incident Reports, on the      required form(s), Attachment 15, shall be submitted to the Project Manager      within twenty-four (24) hours of the occurrence. Simultaneously sending a      copy to the Authority’s Third Party Administrator (TPA) for auto liability      insurance, Claims Service Bureau of New York, Inc., 21 Hempstead Turnpike,      P.O. Box 805, Lynbrook, NY  11563.  The Contractor      shall transmit to the TPA any notice of claim, claim, summons and/or      complaint promptly upon receipt.  The Contractor shall promptly      supply all information, documentation, witnesses or any other assistance      requested by the TPA, and otherwise fully cooperate with the TPA with      regard to all claims arising from such Incidents or    Accidents. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The      Contractor shall verbally notify the Project Manager of all FTA reportable      Accidents, within one (1) hour of occurrence.  The following are      the current applicable FTA criteria for reportable    Accidents: |
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|   | · | An      individual dies (all surviving covered employees on the Vehicle shall be      tested); |
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|   | · | An      individual suffers bodily injury and immediately receives medical      treatment away from the scene of anAccident; |
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|   | · | One      (1) or more Vehicles incurs disabling damages as a result of the      occurrence and is transported away by towtruck. |
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|  | C. | The      Contractor shall verbally notify the Project Manager of all Accidents      within one (1) hour of occurrence. |
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|  | D. | The      Contractor shall verbally notify the Project Manager of all otherwise      noteworthy Incidents within one (1) hour of  occurrence. |
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|  | E. | Accidents      or Incidents that do not meet the above criteria in A above shall be      reported to the the Project Manager within twenty-four (24)      hours. |
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|  | F. | With      respect to Accidents resulting in any personal injury, or in property      damage in excess of $1,000.00, the Contractor shall file with NYS DMV and      submit to the Project Manager a complete written Accident report on the      NYS DMV Accident form within twenty-four (24) hours of the Accident. The      Contractor also shall send a copy of the NYS DMV Accident form to the      TPA. |
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|  | G. | All      drug and alcohol testing as a result of a FTA reportable Accident      (post-accident testing) is to be completed in accordance with the FTA Drug      and Alcohol Testing Program. |
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|  | A. | The      Contractor shall maintain records necessary to document that all Operator      licensing, training and other requirements are current and shall make them      available to the Authority uponrequest. |
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|  | B. | The      Contractor shall establish employee payroll, internal accounting and      budgeting systems sufficient to provide this service.  The      Contractor shall maintain books and records for this Contract independent      of books and records for other business.  Allocations to this      Contract for overhead and other shared costs of multiple businesses shall      be certified as reasonable by the independent accountant audit required      herein.  The Contractor shall retain an independent certified      public accounting firm to perform an annual audit of the Contractor's      financial accounts in accordance with generally accepted accounting      principles.  An original copy of the audit shall be provided to      the Authority upon request. |
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|  | C. | The      Contractor shall maintain internal management information systems      sufficient to document the management of the service by the Contractor in      keeping with the terms of this Contract. Such information systems shall      allow the Contractor to provide on a monthly basis Federal Transit      Administration (FTA) required safety and security information detailing      major incidents and non-major incidents and any other information required      (see Attachment 15). |
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|  | D. | The      Contractor shall maintain accurate service information and shall provide      such information to the Authority upon request. Trip Tickets, Manifests,      Pull-Out/Pull-In logs, Dispatch logs, Road Call logs, Accident, Incident,      Vehicle inventory and mileage reports and information required to complete      the FTA National Transit Database Annual Report requirements and other      information as required by the Authority shall be maintained by the      Contractor in a complete, current and professional  manner. |
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|  | E. | The      Contractor shall be solely responsible for collection, custody and      submission of AAR Coupons to facilitate appropriate Contractor billing      adjustments. The amount in fares that the Contractor is required to      collect each month shall be deducted from monies owed to the Contractor by      the Authority. The Contractor shall be credited for each AAR Coupon      provided to the Authority. Fares shall not be collected from exempt      passengers as noted on the Manifest, such as PCA’s. Fares will not be      deducted from the bill that the Contractor is not instructed to collect as      per the Manifest. |
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|  | F. | The      Contractor is responsible for repairs required to ensure proper      maintenance of Vehicles operated by the Contractor in Revenue Service and      for ensuring a minimum ninety percent (90%) fleet availability at all      times. |
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|  | G. | The      Contractor is required to maintain and secure a minimum of one (1) spare      key for all Vehicles.  Replacement keys shall be furnished by      the Contractor at no additional cost to the  Authority. |
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|  | H. | The      Contractor is responsible for the timely repair and servicing of any      equipment installed by the Contractor at the Contractor's facility,      whether provided by the Contractor or provided by the Authority. This      includes hardware maintenance of any computer equipment obtained by the      Contractor required for use byADEPT. |
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|   | I. | The      Contractor shall maintain and manage an inventory of parts, fuel,      lubricants, fluids and tires required for routine servicing and      maintenance of all Vehicles. |
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|   | J. | The      Contractor shall be solely responsible for arranging for and maintaining      all utilities for the Contractor’sfacilities. |
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|  | K. | The      Contractor shall maintain and replace missing or damaged Vehicle lettering      or logos. The Contractor shall procure and maintain adequate replacement      lettering and logos.  The Authority reserves the right to direct      the Contractor to replace all or part of the lettering and      logos.  The Contractor is prohibited from placing any decal,      sign, paint or other marking identifying the service with the Authority or      any other MTA service. |
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|  | L. | The      Contractor shall be required to estimate and budget for any      highway/bridge/tunnel tolls reasonably required to operate the service in      an efficient manner. The Contractor is required to maintain an EZ-PASS      account sufficient for its fleet requirements.  The Contractor      is required to maintain all EZ-PASSes so that they properly function.      Manual toll receipts will be accepted on a limited basis subject to the      Project Manager’s approval.  Excessive manual tolls will be      disallowed.  All Vehicles in operation shall have a unique      EZ-PASS number. EZ-PASSes are to be permanently affixed to      Vehicles.  The Contractor shall maintain and supply the      Authority with a log which lists the EZ-PASS tag number assigned to each      Vehicle. Copies of EZ-PASS bills shall be presented to the Authority      monthly on a disk provided by MTA Bridges & Tunnels. The Contractor is      responsible for tolls that are for Non-Revenue  Vehicles. |
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|  | M. | The      Contractor shall be required to meet monthly or as otherwise required with      the Authority to discuss operations and Contract management      issues. |
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|  | N. | The      Contractor is solely responsible for developing, implementing and      maintaining a system to assign Contractor employee  Work. |
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|  | O. | The      Contractor is solely responsible for any and all office supplies required      in the performance of thisContract. |
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|   | P. | The      Contractor shall post signs in Vehicles as requested by the Authority and      shall distribute on board Customer notices and surveys when requested to      do so by the Authority. |
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|  | Q. | The      Contractor shall not sell any space or display any advertising on any      Vehicle used in the operation of this service without the approval of the      Authority. Bumper stickers and other similar materials      are specifically not allowed, except for Operator recruitment upon prior      approval of the material by the Authority. No literature of any sort shall      be distributed on any Vehicle without express prior authorization from the      Authority. |
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|  | R. | The      Contractor is prohibited from placing any decal, sign, paint or other      marking on the Vehicle without the prior approval of the      Authority. |
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|  | S. | The      Contractor is responsible for receiving and inspecting Vehicles, obtaining      proper insurance cards and completing Vehicle registration prior to the      date a Vehicle is scheduled to commence Revenue  Service. |
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|  | T. | The      Contractor is required to present clean, defect free Vehicles for NYS DOT      inspection according to State requirements and shall meet the minimum NYS      DOT inspection passing standard of90%. |
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|  | U. | The      Contractor is solely responsible for the payment of any tickets, fines or      penalties assessed by any government authority resulting from the      Contractor's operation of service. |
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|  | V. | For      Operators who transfer to another AAR Contractor, the Contractor shall      supply all initial and refresher training certificates to the hiring      Contractor. The hiring Contractor shall have the Operator complete the FTA      Drug and Alcohol Record Release form and an original of this form shall be      provided to the AAR Contractor that the Operator came from. The hiring AAR      Contractor shall not place any transferred Operators in Revenue Service      prior to the transfer of training certificates and the FTA Drug and      Alcohol Record Release form, and the approval of the      Authority. |
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|   | A.The      Authority’s Division of Customer Assistance will manage the complaints      receipt and distribution process as specified herein.  All      Customers and other persons who make a complaint by telephone shall be      referred to the Division of Customer Assistance at (718) 330-3322. The      Contractor shall forward hard copy of written complaints within three (3)      business days of receipt to the Paratransit Customer Correspondence Unit,      33-00 Northern Boulevard., Long Island City, NY  11101. |
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|  | B. | The      Contractor shall be required to provide a written response to any      complaint forwarded by the Authority to the Contractor.  The      Contractor shall investigate and respond to the Authority no later that      three (3) business days after receipt by the Contractor of the Project      Manager's request.  The Authority shall instruct the Contractor      to whom the response and any copies should be directed. In addition, the      Contractor may be required to telephone Customers in response to      complaints. |
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|  | C. | The      Project Director is required to personally review and sign all complaint      correspondence. |
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|  | D. | At      the monthly meeting between the Contractor and the Authority, the Project      Director shall be required to discuss complaint trends, if any, and to      recommend and implement corrective action to be taken by the      Contractor. |
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|  | E. | Responsiveness      to Customer complaints is a material performance standard of this      Contract. |
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|  | B. | Feeder      Service |
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|   | · | Minimum      dimensions: width-9 feet, length-13 feet, height-8  feet |
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|   | · | Dedicated      Air Conditioning equipment to maintain temperature of approximately 65      degrees Fahrenheit. |
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|   | · | A      dedicated, 30 AMP NEMA twist lock 120 volt AC receptacle circuit shall be      provided to the rack mounted UPS from the electrical  panel. |
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|   | · | Two      heated and lighted interior installation bays.  Lifts are not      required. |
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|   | · | 110      Volt AC. |
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|   | · | Washroom      facilities. |
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