<PAGE>

                                                                   Exhibit 10.17


                              NYC D.O.T. CONTRACT




                               ATLANTIC PARATRANS
                        7 North Street Staten Island, NY
<PAGE>

[Letterhead of New York City Transit]

October 19, 1995

Mr. David Kessler
Vice President
Atlantic Paratrans, Inc.
1752 Shore Pkwy.
Brooklyn, NY 11213

Re: Contract No. 94E5461B Modification #1 - Zones 2 & 3

Dear David:

As previously mentioned, enclosed are five copies of the above referenced
contract modification.

Please sign all five copies, returning all five to the address below:

Gail H. Eisenfeld
New York City Transit Authority
130 Livingston St., Room 6052B
Brooklyn, New York 11201

Thank You.

Sincerely yours,


/s/ Gail

Gail H. Eisenfeld
Procurement Manager
Material Division

1312a/ge

MTA New York City Transit is an agency of the Metropolitan Transportation
     Authority
Peter E. Stangl, Chairman and Chief Executive Officer
<PAGE>

                         NEW YORK CITY TRANSIT AUTHORITY

                       CONTRACT MODIFICATION/CHANGE ORDER

Change Order No.: 1
Contract No:      94E5461B
Contract Title:   Five Borough Paratransit Carrier Service

Contractor:       Atlantic Paratrans, Inc.
                  1752 Shore Parkway
                  Brooklyn, NY 11214

This Modification/Change Order, when properly executed, constitutes
authorization to proceed with the changes describe herein and changes the amount
of the contract as noted.

--------------------------------------------------------------------------------

                              DESCRIPTION OF CHANGE
--------------------------------------------------------------------------------

1. ARTICLE 110, Payment, Paragraph B only shall be deleted in its entirety and
changed to read as follows:

      B. Payment will be made to the Contractor on:

            (1) a fixed payment basis for items allowed in the fixed price
portion of this contract;

            (2) A variable payment basis for each service hour operated by the
Contractor at the direction of NYC Transit;

            (3) a pass-through payment basis to include

                  (a) a per unit monthly cost for revenue vehicles acquired by
the Contractor with the prior approval of NYC Transit;

                  (b) a per vehicle cost for insurance; and

                  (c) tolls for revenue vehicles.

            Mobilization costs will be paid upon submission of invoices in a
form acceptable to NYC Transit.

2. ARTICLE 125, Warranty Work and Parts: Delete the last sentence, which will be
relocated to become the last sentence of ARTICLE 126, Vehicle Equivalency
Procedure.
<PAGE>

3. ARTICLE 126 , Vehicle Equivalency Procedure: At the end of this Article,
include the following sentence, "All submissions will then be forwarded to the
Chairman of the Vehicle Equivalency Committee in a timely fashion for
consideration as an `approved equal'."

4. PARAGRAPH 2.9, Technical Specifications, (Page T-2), delete the paragraph in
its entirety and replace with the following: "As of the contract start date,
service hours for Zones 1, 2, 3 and 4 are 6 am to 8 pm on weekdays and 10 am to
12 midnight on weekends and holidays. Beginning 7/1/96, service hours for Zones
1, 2, 3 and 4 are 6 am to 8 pm on weekdays and 6 am to midnight on weekends and
holidays. Beginning 10/1/96, service hours for Zones 1, 2, 3 and 4 are 6 am to
midnight on weekdays, weekends and holidays.

5. PARAGRAPH 2.11, Technical Specifications, (Page T-3), delete the phrase
"within 90 calendar days" and replace with "at least 90 days in advance."

6. PARAGRAPH 2.20 of the Technical Specifications (Page T-4) shall be changes to
read as follows:

      "Payment will be made to the contractor on (1) a fixed payment basis for
items allowed in the fixed price portions of this contract, (2) a variable
payment basis for each service hour operated by the carrier at the direction of
NYC transit and (3) a pass-through basis to include costs for revenue vehicles,
revenue vehicle insurance and tolls for revenue service vehicles calculated on a
monthly basis in accordance with Article 110, Payment, and Article 111, Invoices
and Audit."

7. PARAGRAPH 5.8, Technical Specifications (Page T-8) delete the following
sentence: "PMMIS hardware provided by the carrier shall be acquired, installed
and tested by the carrier during Phase III." Replace with the following
sentence: "PMMIS hardware provided by the carrier shall be acquired, installed
and tested by the carrier during Phase I."

8. PARAGRAPH 13.8B, Vehicle Equivalency Procedure, Technical Specifications
(page T-20), delete in its entirety and replace with the following: Any
contractor proposing a vehicle with specifications that differ from those listed
in Appendices A, B, C and D must submit those vehicle specifications as stated
in Article 126, Vehicle Equivalency Procedure, page C-22.

9. PARAGRAPH 13.11, Technical Specifications (page T-20), delete the last
sentence and replace with the following: "All equipment considered for
reassignment are built on 1993 or newer chassis."

10. PARAGRAPH 14.11, Technical Specifications (page T-23), in the last sentence
delete "one day" and replace with "two days...."

11. SECTION 28.1 through SECTION 28.5 shall be renumbered Section 27.1 through
Section 27.5.

12. SECTION 27.1 through SECTION 27.4, Estimated Contract Quantities shall be
changed to reflect new dates for mobilization and contract duration as follows:


                                       2
<PAGE>

Section 27.1 Zone 1 - Manhattan and the Bronx

Mobilization Date: October 1, 1995

Contract Period Beginning April 1, 1996: Term 5 years

1st Year - 4/1/96 through 3/31/97 
2nd Year - 4/1/97 through 3/31/98 
3rd Year - 4/1/98 through 3/31/99 
4th Year - 4/1/99 through 3/31/00 
5th Year - 4/1/00 through 3/31/01

Section 27.2 Zone 2 - Queens

Mobilization Date: November 1, 1995

Contract Period Beginning May 1, 1995: Term 5 Years

1st Year - 5/1/96 through 4/30/97 
2nd Year - 5/1/97 through 4/30/98 
3rd Year - 5/1/98 through 4/30/99 
4th Year - 5/1/99 through 4/30/00 
5th Year - 5/1/00 through 4/30/01

Section 27.3 - Zone 3 - Brooklyn

Mobilization Date: December 1, 1995

Contract Period Beginning June 1, 1995: Term 5 Years

1st Year - 6/1/96 through 5/31/97 
2nd year - 6/1/97 through 5/31/98 
3rd Year - 6/1/98 through 5/31/99 
4th Year - 6/1/99 through 5/31/00 
5th Year - 6/1/00 through 5/31/01

Section 27.4 - Zone 4 - Staten Island

Mobilization Date: November 1, 1995

Contract Period Beginning May 1, 1996: Term 5 Years

1st Year - 5/1/96 through 4/30/97 
2nd Year - 5/1/97 through 4/30/98 
3rd Year - 5/1/98 through 4/30/99 
4th Year - 5/1/99 through 4/30/00 
5th Year - 5/1/00 through 4/30/01

13. SECTION 29, Lease Agreement, Technical Specifications (page T-47) delete the
words, "The language in paragraph 30.3...." and replace with "The language in
paragraph 29.3...."


                                       3
<PAGE>

14. PART III, TECHNICAL SPECIFICATIONS: the cause "in this RFP" as stated in
many paragraphs of this Contract, is deemed to mean "in this Contract" as well.

--------------------------------------------------------------------------------

      All terms, covenants, and conditions of the Original Agreement 94E5461B
remain in force and effect except as herein stated.


      A. Original Contract Amount               $77,044,351.00
                                                --------------
      B. New Mod #1 (No Change Amount)          $    - 0 -
                                                --------------
      C. New Contract Amount (A+B)              $77,044,351.00
                                                --------------

--------------------------------------------------------------------------------

CONTRACTOR: ATLANTIC PARATRANS, INC.      NEW YORK CITY TRANSIT AUTHORITY

Signature: /s/ David S. Kessler           Signature:____________________________

Name:  David S. Kessler                   Name: Joy Fairtile

Title: Vice-President                     Title: Asst. Chief Proc. Officer

Date:  October 23, 1995                          Material Division

                                          Date: _________________________

--------------------------------------------------------------------------------

RETURN EXECUTED COPIES TO NEW YORK CITY TRANSIT AUTHORITY, 130 LIVINGSTON ST.,
Room 6052A, BROOKLYN, NY 11201 ATTN: Gail H. Eisenfeld, Procurement Manager


                                       4
<PAGE>

[Letterhead of New York City Transit]

October 20, 1995

Mr. David Kessler
Atlantic Paratrans, Inc.
1752 Shore Parkway
Brooklyn, NY 11214

Re: NOTICE TO PROCEED, Contract Number 94E5461B, Five Borough Paratransit
Carrier Service, Zones 2 & 3

Dear Mr. Kessler:

As you have been advised, the subject contract has been awarded to your firm.
New mobilization instructions have been sent to you under separate cover. This
letter is the NOTICE TO PROCEED with those mobilization instructions.

Please acknowledge receipt of this letter by signing below and indicate the date
of receipt. Return this letter to Gail Eisenfeld, Procurement at 130 Livingston
St., Room 6052A, Brooklyn, NY 11201.

Sincerely yours,


/s/ Stanley Grill

Stanley Grill
Chief Procurement Officer
Materiel Division


___________________________________________
ACKNOWLEDGEMENT: Signature and Date

MTA New York City Transit is an agency of the Metropolitan Transportation
     Authority
Peter E. Stangl, Chairman and Chief Executive Officer
<PAGE>

[Letterhead of New York City Transit]

October 20, 1995

Mr. David Kessler
Vice President/Director of Transportation
Atlantic Paratrans, Inc.
1752 Shore Parkway
Brooklyn, New York 11214

Dear Mr. Kessler:

In accordance with Contract 94E5461B, the purpose of this letter is to provide
you with sufficient requirements to prepare your start-up plans for approval to
start your actual mobilization activity. The items specified are vehicle levels,
minimum facility square footage and the starting first quarter's vehicle service
hours as follows:

                                    VEHICLES

Zone 2 - Queens - 55* 
Zone 3 - Brooklyn - 66*

* These are starting levels for the beginning of the respective contract years.
Additional vehicles will be required for the ramp-up activities in the in the
latter part of 1996. We will advise you of the additional requirements at a
later date. When submitting your plan, assume you will receive 1 large and 6
small vans that will be reassigned from the current Queens operator. Also, your
plan should include the mix of vehicles types that were accepted in the executed
contracts.

You may start this service with any vehicle approved by the project manager for
use that is no older than March 1994.

                                   FACILITIES

Zone 2 - Queens - 32,350 square feet
Zone 3 - Brooklyn - 36,533 square feet

                       FIRST QUARTER VEHICLE SERVICE HOURS

Zone 2 - Queens - 30,755 hours
Zone 3 - Brooklyn - 37,078 hours

MTA New York City Transit is an agency of the Metropolitan Transportation
     Authority
Peter E. Stangl, Chairman and Chief Executive Officer
<PAGE>

Page 2

As a reminder, as the contract requires, please ensure that your accounting
records are not commingled with any other business owned or operated by the
principals of your company.

Sincerely,


/s/ Dennis A. Erkus

Dennis A. Erkus
Director, Operations
Divisions of Paratransit & ADA Compliance

cc: G. Millis
    K. DeDonno
    P. Baker
    E. Kalomiris
    G. Eisenfeld
    Contractor File
<PAGE>

[Letterhead of New York City Transit]

September 22, 1995

Mr. David Kessler
Vice President
Atlantic Paratrans, Inc.
1752 Shore Parkway
Brooklyn, NY 11214

Re:  Contract 94E5461B - Five Borough Paratransit Carrier 
     Contracts - Zone 2 and 3

Dear Mr. Kessler:

You are hereby notified that the above subject contract has been awarded to
Atlantic Paratrans, Inc. The contract is deemed to be in effect as of the date
of this letter.

This contract is in the not to exceed amount of $77,044,351. The demand
estimates contained in this contract are currently being reviewed.
Mobilization instructions will follow shortly.

Attached is a fully executed original copy of your contract with the 
Authority. If you have any questions, please call Gail Eisenfeld, Procurement 
Manager, at (718) 694-3171.

Sincerely,


/s/ Stanley Grill

Stanley Grill
Chief Procurement Officer
Material Division

Enclosure

MTA New York City Transit is an agency of the Metropolitan Transportation
     Authority
Peter E. Stangl, Chairman and Chief Executive Officer
<PAGE>

                                  [ILLEGIBLE]

CHGS: CS DIV.           AUTHORITY               OPERATING AUTHORITY
R.C # 7196
ACCT. # 808.99          ACCEPTANCE AND ORDER   
FUNCT. # 806                                   
                                                       -------------------------
                                                       CON. DEPT.           |X|
                                                       PURCH DEPT.          |_|
                                                       130 LIVINGSTON STREET
                                                       BROOKLYN, NY 11201     
                                                       -------------------------

------------------------------------------------     
            Atlantic Paratrans, Inc.                 Proc. Manager: G. Eisenfeld
            1752 Shore Parkway                         Tel. No.: (718) 694-3177 
            Brooklyn, NY 11214                       Project Man: D. Erkus      
            Attn: D. Kessler                           Tel. No.: (212) 373-5635 
------------------------------------------------     
                                                     
      YOU ARE HEREBY NOTIFIED THAT YOUR BID FOR THE ARTICLES LISTED IN THE
SCHEDULE BELOW HAS BEEN ACCEPTED AND YOU ARE HEREBY DIRECTED TO FURNISH SAME IN
ACCORDANCE WITH THE TERMS THEREOF TO BE DELIVERED AT TIME DESIGNATED IN SAID
PROPOSAL.

GOODS WILL NOT BE ACCEPTED OR BILLS AUDITED FOR PAYMENT, UNLESS THE FOLLOWING
CONDITIONS ARE COMPLIED WITH:

PLACE ORDER NUMBER AND DELIVERY POINT ON ALL BILLS, PACKING SLIPS AND SHIPPING
LABELS.

BILLS MUST BE SUBMITTED IN DUPLICATE FOR EACH DELIVERY MADE. MAIL TO: N.Y.C.
TRANSIT AUTHORITY OR MANHATTAN AND BRONX SURFACE TRANSIT OPERATING AUTHORITY per
contract terms.
                                                --------------------------------
                                                   SEPARATE INVOICES REQUIRED
                                                   FOR EACH DELIVERY POINT
                                                --------------------------------
SEND MEMORANDUM BILL WITH EACH SHIPMENT, INCLUDING PRICES, TO DELIVERY POINT.
MAKE DELIVERIES BETWEEN 8 A.M. AND 3 P.M. DAILY, EXCEPT SATURDAY AND SUNDAY.

---------------------------------------------------------------
  DELIVERY POINT: SEE STOREROOM COLUMN BELOW FOR DESIGNATION.           TRANS 
                  ADDRESSES OF STOREROOMS ON REVERSE SIDE.              CODE 15
---------------------------------------------------------------
                                                                   
================================================================================
NO.      ORDER DATE  ORDER NO:   MARK ALL BILLS AND SHIPMENTS    DELIVERY DATE
E5461B     9/22/95    E-2098                                        SEE BELOW
                                      WITH THIS NUMBER
--------------------------------------------------------------------------------
[ILLEGIBLE]                  Shipping Instructions:
Contract 94E5461B                               See Below

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
[ILLEGIBLE] STORE  QUANTITY    UNIT
            ROOM               MEAS.       DESCRIPTION                                UNIT PRICE   AMOUNT
---------------------------------------------------------------------------------------------------------
<S>         <C>    <C>         <C>         <C>                                        <C>          <C>

                                       THIS  MATERIAL IS EXEMPT FROM ALL EXCISE TAX

                                    FOR ACCOUNTING PURPOSES ONLY

                                    Furnish and deliver Paratransit Access-
                                    a-Ride service for Zones 2 and 3 (Boroughs
                                    of Queens and Brooklyn) in accordance
                                    with Contract #94E5461B.

     
                                                               TOTAL AMOUNT NOT TO
                                                               EXCEED $77,044,351
                                                                      -----------

=========================================================================================================
</TABLE>

NOTE: THAT PURSUANT TO THE DIRECTIVE OF JOSEPH H. MURPHY, COMMISSIONER OF 
TAXATION AND FINANCE OF THE STATE OF NEW YORK DATED 7/22/65. THIS PURCHASE 
MAY BE ACCEPTED IN LIEU OF AN EXEMPTION CERTIFICATE, WITH THE VENDOR 
RETAINING A COPY TO PROVE THAT THE SALE WAS EXEMPT.

THIS ORDER SUBJECT TO NON-DISCRIMINATION CLAUSE ON REVERSE SIDE.

                                               _________________________________
                                                AUTHORIZED PROCUREMENT OFFICER
<PAGE>

                      -------------------------------------

                         NEW YORK CITY TRANSIT AUTHORITY
                              DIVISION OF MATERIEL
                            PROCUREMENT SUB-DIVISION

                                CONTRACT #94E5461
                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

                     ---------------------------------------
<PAGE>

               FIVE BOROUGH PARATRANSIT CARRIER SERVICE CONTRACTS

                                CONTRACT 94E5461

                               TABLE OF CONTENTS

SECTION

PART I      Contract Terms and Conditions

PART II     General Contract Provisions

PART III    Technical Specifications

            Appendices

ATTACHMENTS:

Attachment I:     PRICE SCHEDULE
Attachment II:    Schedule A - Insurance and Bonding Requirements
Attachment III:   Schedule D - Federal Contract Provisions
Attachment IV:    Schedule F - Certification and Disclosure Forms
Attachment V:     Schedule C - Disadvantaged Business Enterprise
                               Participation
Attachment VI:    Schedule G - Rider to Contract Documents
Attachment VII:   FAR Part 31
<PAGE>

                                CONTRACT 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

PART I

                         CONTRACT TERMS AND CONDITIONS                     PAGE
                         -----------------------------                     ----
ARTICLE

101   DEFINITIONS ......................................................    C-1
102   SCOPE OF WORK ....................................................    C-5
103   TERM OR AGREEMENT ................................................    C-6
104   TIME AND STANDARDS OF PERFORMANCE ................................    C-6
105   DELIVERY AND WORK PRODUCTS AND MATERIALS .........................    C-8
106   DRUG AND ALCOHOL PROGRAM .........................................    C-8
107   SUSPENSION OF PERFORMANCE ........................................    C-8
108   PERMITS ..........................................................    C-8
109   GRAND JURY TESTIMONY .............................................    C-8
110   PAYMENT ..........................................................    C-9
111   INVOICES AND AUDIT ...............................................    C-11
112   LIQUIDATED DAMAGES ...............................................    C-13
113   ENTIRE AGREEMENT .................................................    C-18
114   PROSECUTION OF THE WORK ..........................................    C-18
115   RISK OF LOSS .....................................................    C-19
116   SUBCONTRACTORS ...................................................    C-20
117   RELATIONSHIP OF CONTRACTOR TO THE AUTHORITY ......................    C-20
118   DISCLOSURE .......................................................    C-21
119   MOST FAVORED CUSTOMER ............................................    C-21
120   PUBLICITY ........................................................    C-21
121   AMENDMENTS .......................................................    C-21
122   ATTACHMENTS ......................................................    C-21
123   RESCISSION .......................................................    C-22
124   ORDER OF PREFERENCE ..............................................    C-22
125   WARRANTY WORK AND PARTS: VEHICLE MAINTENANCE AGREEMENTS ..........    C-22
126   VEHICLE EQUIVALENCY PROCEDURE ....................................    C-22
<PAGE>

                                    PART II

                         CONTRACT TERMS AND CONDITIONS

                                    94E5461

      AGREEMENT, made this_______ day of ____________,199_, between the NEW YORK
CITY TRANSIT AUTHORITY (hereinafter the "Authority"), with offices at 370 Jay
Street, Brooklyn, NY 11201, and ____________________ (hereinafter the
"Contractor"), a Corporation, with offices at______________________

                                  WITNESSETH:

      WHEREAS, the Authority desires to retain a Contractor to provide Americans
with Disabilities Act mandated Paratransit (Access-a-Ride) service for Zone
_________ as set forth in Part III, Technical Specifications;

      WHEREAS, the Contractor represents that it possesses the necessary
knowledge and experience to perform the Work and services herein described; and

      WHEREAS, the Authority desires to retain Contractor on the terms and
conditions set forth in this Agreement and Contractor has agreed to accept such
compensation based upon the rates set forth in the Price Schedule designated
herein;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto do hereby agree as follows:


                                      C-0
<PAGE>

                        NEW YORK CITY TRANSIT AUTHORITY
                        Materiel Division - Procurement

                              CONTRACT PROVISIONS

ARTICLE 101                   DEFINITIONS

      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" shall mean New York City Transit Authority
            paratransit service.

      2.    "Adaptive Device" shall mean a tool used by persons with physical
            disabilities to help with mobility and communication.

      3.    "Addenda" or "Addendum" shall mean the additional Contract
            provisions relating to the Contract issued in writing by the
            Authority prior to the Award Date.

      4.    "Add-on Trips" shall mean stand-by trips not provided in a driver's
            daily manifest to be dispatched real-time to driver.

      5.    "Advance Reservations" shall mean paratransit service mode requiring
            passengers to call to place a reservation for paratransit service.

      6.    "Annual Paratransit Plan Update" shall mean the report required
            annually by the Federal Transit Administration which documents
            Americans with Disabilities Act.

      7.    "Authority" or "NYC Transit" (or the initials "T.A" or "N.Y.C.T.A.")
            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 pass or be held to appertain.

      8.    "Award Date" shall mean the date of the Notice of Award is issued.

      9.    "Brochure Rack" shall mean a pamphlet display fixture to be
            furnished by the New York City Transit Authority and installed by
            carriers in the interior of Access-a-Ride vehicles.

      10.   "Bus Block" shall mean a segment of vehicle platform time in
            non-revenue and revenue service.

      11.   "Call Holding" shall mean the queuing of customer calls awaiting
            availability of a reservations operator.

      12.   "Call Reservations" shall mean an Access-a-Ride function providing
            customers with on-line confirmation of their advance registration
            trip request.

      13.   "Carrier" shall mean an operator of, or party submitting a proposal
            to operate some or all of, the Access-a-Ride service.


                                      C-1
<PAGE>

      14.   "Carrier No-Show" shall mean a failure by the Contractor to pick up
            a passenger.

      15.   "Centralized Reservations and Scheduling System (CRSS)" shall mean
            an automated system supporting paratransit ride reservations,
            scheduling and reporting.

      16.   "City" shall mean the City of New York, according to its boundaries
            at the date of this Contract.

      17.   "Command Center" shall mean a New York City Transit Authority site
            for operating Access-a-Ride reservations, scheduling and customer
            assistance functions during Phase 3 of operations.

      18.   "Conditional Eligibility" shall mean service restrictions of some
            Access-a-Ride participants.

      19.   "Contract," "Contract Documents" or "Agreement" shall mean the
            ATTACHMENTS, APPENDIX, PROPOSER'S PROPOSAL, CONTRACT TESTIMONIUM,
            GENERAL CONTRACT PROVISIONS, INFORMATION FOR PROPOSERS
            (IFP),SPECIFIC CONTRACT PROVISIONS, SCHEDULES deemed included (if
            any), TECHNICAL SPECIFICATIONS (if any), FORMS OF BONDS (if any),
            CONTRACT DRAWINGS (if any), all ADDENDA hereafter issued (if any),
            and the Notice of Award.

      20.   "Contractor" shall mean the Proposer to whom this Contract is
            awarded, its successors and assignees. For convenience the
            Contractor may be 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".

      21.   "Contractor Cancellation" shall mean Unauthorized Access-a-Ride
            carrier cancellation of scheduled passenger trip.

      22.   "Contractor Early" shall mean vehicle arrival more than 15 minutes
            before scheduled passenger pick-up time.

      23.   "Contractor Late" shall mean vehicle arrival more than 15 minutes
            after scheduled passenger pick-up time.

      24.   "Customer Assistance Division" shall mean a Sub-division of NYC
            Transit which provides customer information and complaint
            management.

      25.   "Customer No-Show" shall mean Access-a-Ride participant not
            available for properly scheduled trip.

      26.   "Deadheading" shall mean any vehicle time and mileage when vehicle
            is not in revenue service.

      27.   "Depot" shall mean the Carrier's operation facility.


                                      C-2
<PAGE>

      28.   "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.

      29.   "Dispatch Log" shall mean the dispatchers daily record of service
            and vehicle information.

      30.   "Disputes Resolution Officer" or "DRO" shall mean the individual
            designated by the Authority to resolve disputes between the parties.

      31.   "DOT" shall mean the United States Department of Transportation.

      32.   "Driver Bid" mean the process by which carrier personnel are
            assigned regular work

      33.   "Engineer" shall have the same meaning as "Project Manager".

      34.   "En Route Relief" shall mean a change in revenue vehicle drivers in
            the field during carrier service hours.

      35.   "Federal" or words of like import shall mean the United States of
            America.

      36.   "Inspector" shall mean any representative of the Project Manager
            designated to act as an inspector.

      37.   "Late Trip Cancellation" shall mean customer cancellation after 5:00
            p.m. the night before a trip.

      38.   "Law shall mean the Constitution and laws of the United States and
            of the State of New York, the New York City Charter, the City 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).

      39.   "Legal Proceeding" shall mean every action, litigation, arbitration,
            administrative proceedings, and other legal or equitable proceeding
            of any kind whatsoever.

      40.   "Liens" shall mean any and every lien of kind whatsoever against the
            Work, any monies due or to become due from the Authority to
            Contractor, and/or any other property of the Authority, for or on
            account of the work, including any Public Lien.

      41.   "Maintenance Campaign" shall mean inspections of heating and air
            conditioning equipment and revenue vehicles.

      42.   "Manufacturer" - See "Supplier".


                                      C-3
<PAGE>

      43.   "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.

      44.   "New York City Transit System" (or "system") shall mean the transit
            system within the City of New York operated by the New York City
            Transit Authority.

      45.   "New York State" shall mean the State of New York.

      46.   "Non-revenue Equipment" shall mean vehicles used by the Contractor
            that are not in revenue service; it may include vehicles used for
            supervisory and maintenance functions.

      47.   "Notice" or "notice" shall mean a written notice.

      48.   "Notice of Award" shall mean a document that apprises the Contractor
            that this Contract has been approved by the NYCTA.

      49.   "On-Line Confirmation" shall mean confirmation to a customer of
            his/her requested ride at the time the customer makes the
            reservation.

      50.   "On-Time Performance" shall mean plus or minus 15 minutes from the
            scheduled pick-up time.

      51.   The term "Original Equipment Manufacturer" or "O.E.M." shall mean
            the standards, requirements, recommendations of the respective
            Manufacturer.

      52.   "Pigtail" shall mean a long cord used in the remote control
            operation of a wheelchair lift in a lift vehicle.

      53.   "Post Trip Vehicle Inspection" shall mean the daily inspection of
            the revenue vehicle immediately following completion of revenue
            service tour.

      54.   "Pre-trip Vehicle Inspection" shall mean inspection of the revenue
            vehicle immediately preceding the revenue service tour.

      55.   "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 who shall be appointed by the Authority.

      56.   "Pull-In" shall mean the return of the revenue vehicle to the
            assigned depot facility.

      57.   "Pull-Out" shall mean the revenue vehicle departure from the
            assigned depot facility to enter revenue services.

      58.   "Pull-Out/Pull-in Logs" shall mean dispatcher records of vehicle
            pull-outs and pull-ins.

      59.   "Pull Out Ready Line " shall mean the revenue vehicles available for
            revenue service pull-out at the beginning of each peak period.


                                      C-4
<PAGE>

      60. "Repeaters" shall mean repeating radio signals during radio
transmissions.

      61. "Revenue Service" shall mean the period of time from the initial
departure of the revenue vehicle from the assigned depot to the last passenger
drop-off and return of revenue vehicle to the assigned depot.

      62. "Service Hour" shall mean each hour that a revenue vehicle is in
revenue service.

      63. "Service Capacity" shall mean the sum total of passenger trips
scheduled to be completed, including passenger late cancellations, passenger
no-shows and completed trips.

      64. "SI System" shall mean the International System of Units.

      65. "State" -- See "New York State."

      66. "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 on behalf of
the Contractor and whether or not in privity of Contract with the Contractor.

      67. "Subscription" shall mean regularly scheduled paratransit service
available without a reservation.

      68. "Supplier" shall mean an individual or organization who furnishes
materials, equipment or supplies to the Contractor either directly or
indirectly, for incorporation in the Work.

      69. "Timely Trip Cancellation" shall mean a trip cancellation received
before 5 p.m. the day before a trip is scheduled.

      70. The term "Warranty Unit" or "warranty unit" shall mean any Unit
returned pursuant to the Warranty Provisions of this Contract.

      71. "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.

      72. "UMTA" shall mean the United States Department of Transportation Urban
Mass Transportation Administration, now known as the Federal Transit
Administration.

      73. "United States Government" -- See "Federal."

ARTICLE 102       SCOPE OF WORK

      The New York City Transit Authority (hereafter referred to as "the
Authority," "NYC Transit" or "NYCTA") hereby retains the Contractor, and the
Contractor hereby agrees to perform the services as described in the Technical


                                       C-5
<PAGE>

      Specifications, which is appended hereto and incorporated herein. (Part
III). All performance obligations specified herein and in Scope of Work shall be
referred to as the "Work." Contract shall perform all Work in accordance with
the highest professional standards.

ARTICLE 103       TERM OF AGREEMENT

      This Agreement shall become effective upon the date of the notice to
proceed and shall continue in effect for a period of five years (plus a
mobilization period) unless terminated sooner.

ARTICLE 104       TIME AND STANDARDS OF PERFORMANCE

      A. Contractor shall complete all Work assigned hereunder within the period
of time specified by the Contract.

      B. The Contractor shall adhere to the following performance standards.

         1. On Time Performance: the Contractor shall provide ninety (90)
percent on time performance for all scheduled pick-ups and drop-offs. On-time is
deemed to mean plus or minus fifteen (15) minutes from the scheduled time.

         2. Advanced Reservation Shared Ride Time: the Contractor shall not
require any customer to ride on an advanced reservation shared ride that is
twice as long as an advanced reservation non-shared ride.

         3. Subscription Shared Ride Time: the Contractor shall not require any
customer to ride on any revenue vehicle in shared ride subscription service when
that ride is twice as long as an advanced reservation non-shared ride.

         4. Reservationist Response: the Contractor shall provide a sufficient
number of reservationists during Phase Two operations so as to provide immediate
(no call holding or waiting) access to customers calling for a ride a minimum of
seventy-five (75) percent of the time. Remaining calls should be answered within
two minutes of customers accessing the automated call distribution system.

         5. Cancellation "Hot Line" Response: the Contractor shall provide a
sufficient number of operators during the hours of 6:00 a.m. to 10:00 p.m.
weekdays and weekends to handle the Cancellation "Hot Line" so as to provide
customers canceling reservations immediate access (no call holding or call
waiting) to personnel at a minimum of seventy-five (75) percent of the time.
Remaining call should be answered within two minutes of initial access. During
non-business hours, all calls must be captured by the Automated Call
Distribution System and reviewed by the Contractor no later than 6:00 a.m. the
following morning.

         6. Phase Two Posting and Delivery of Trip Tickets and PMMIS
deliverables shall be made within three (3) business days of the actual trips.

         7. Telephone Recording Cassettes Tapes shall be delivered to NYCTA no
later than three (3) business days after Contractor's receipt of request from
NYCTA.


                                       C-6
<PAGE>

         8. Signed Trip Tickets: during Phase Two operations, all trip tickets
must be handled in the manner specific in paragraphs 11.20 and 11.21, Technical
Specifications.

         9. Preventative Maintenance of Revenue Vehicles: the Contractor shall
be required to perform ninety-five (95) percent of all Type A, B and C
inspections within three (3) business days and 400 miles or less from the
scheduled maintenance date and mileage requirements. The Contractor is
specifically exempted from this requirement during the first month of Phase Two
operations.

         10. Pre and Post Trip Vehicle Inspection: the Contract shall implement
a program to establish a ninety-nine percent conformance with paragraph 14.4,
Technical Requirements.

         11. Accidents/Incidents:

      a. Reporting: The Contractor shall provide a verbal report to the NYC
Transit Project Manager or duly authorized representative within one hour of the
accident or incident involving injury to a customer, Access-a-Ride employee or
any other person or where damage is in excess of $1,000. A written report to
follow the verbal report is required within 24 hours. All other incidents are to
be reported verbally and in writing within 24 hours of the event.

      b. Repairs: The Contractor must repair all damage to vehicles or
facilities within 30 days.

         12. Deadheading: the Contractor will adhere to a maximum thirty (30)
minute deadheading limit at both the beginning and end of any revenue vehicle
work block.

         13. Complaints: the Contractors shall maintain a ratio of complaints to
completed trips to 1:2,500.

         14. Productivity: the Contractor shall maintain a trip per hour ration
of no less than 1.80 trips per revenue vehicle hour, measured from vehicle
pull-out to pull-in during Phase Two.

         15. Heating and Air Conditioning: the Contractor shall properly
maintain operating heating and air conditioning systems on all revenue vehicles.
No revenue vehicle shall be operated in revenue service for longer than two (2)
days without properly functioning heating or air conditioning systems as
described in paragraph 14.11, Technical Specifications.

         16. Cleanliness of Revenue Vehicles: The Contractor shall be
responsible for maintaining the appearance and cleanliness of all vehicles used
in the Paratransit service. The Contractor shall implement and maintain a
regular schedule of vehicle washing.

      (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 25 feet. In the event of inclement weather, the
Contractor may suspend vehicle washing for no later than 24 hours after the end
of the inclement weather, at which time the Contractor will resume vehicle
washing.


                                       C-7
<PAGE>

      (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.

ARTICLE 105       DELIVERY OF WORK PRODUCTS AND MATERIALS

      Upon request of the Authority, the Contractor shall deliver forthwith to
the Authority any Work products produced and all data, studies, reports,
material, specifications, plans, charts, photographs, exhibits prepared,
developed or kept in connection with, or as part of this project, and all their
material and records of whatsoever nature prepared, developed or kept in
connection with, or as part of, this project ("Work Products"). Without the
necessity of any demand by the Authority, Contractor shall deliver to the
Authority, prior to the expiration or upon the earlier termination of this
Agreement, all Work Products, which shall become the property of the Authority.
This paragraph does not apply to any records or documents pertaining to the
operation of Contractor's business. The Contractor may retain copies of those
records or documents which it considers necessary for proof of performance.

ARTICLE 106       DRUG AND ALCOHOL PROGRAM

      The Contractor shall comply with all applicable federal, state and local
drug testing requirements in effect on the date of this Contract's execution and
any such requirements as become effective thereafter.

ARTICLE 107       SUSPENSION OF PERFORMANCE

      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 at least ten days 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 the Authority.

ARTICLE 108       PERMITS

      A. The Contractor, at its own expense, shall apply for, request, process
and obtain all permits and approvals required for, necessary for, or in
connection with the Work.

      B. The Contractor is required by the New York State Department of Motor
Vehicles (NYSDMV) to comply with the requirements of Article 19-A, Part 6 of the
Vehicle and Traffic Law and all other relevant federal, state and city
regulations including those of the Taxi and Limousine Commission (TLC).

ARTICLE 109       GRAND JURY TESTIMONY

      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


                                       C-8
<PAGE>

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 (MTA) 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 or collected by the City, the Metropolitan Transportation
            Authority (MTA), 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 is a
            member, partner, director or officer may be canceled or terminated
            by the City, the Metropolitan Transportation Authority (MTA) 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.

ARTICLE 110       PAYMENT

      A. It is agreed that for all services and Work rendered or to be rendered,
and for all costs and expenses incurred under this Agreement, the Authority will
pay, and the Contractor will accept as full payment the amounts set forth in the
Price Schedule (Technical Specifications, Attachment No. I, at a total cost not
to exceed $______.

      B. Payment will be made to the Contractor on:

         (1) a fixed payment basis for items allowed in the fixed price portion
of this contract;

         (2) a variable payment basis for each service hour operated by the
Contractor at the director of NYC Transit

         (3) a per vehicle cost for insurance; and

         (4) a per unit monthly cost for revenue vehicles acquired by the
Contractor with the prior approval of NYC Transit.


                                       C-9
<PAGE>

         (5) mobilization costs will be paid upon submission of an invoice in a
form acceptable to NYC Transit.

      C. Fixed costs shall be subject to the U.S. Department of Labor's New
York, New York-Northern New Jersey CPIU (Consumer Price Index for all Urban
Consumers) on an annual basis.

      D. Variable costs shall be subject to General Contract Provisions Article
222, QUANTITIES ARE APPROXIMATE/VARIABLE QUANTITIES CLAUSE

      E. NYC Transit shall pay the Contractor for actual vehicle service hours
less adjustments for excessive deadheading. No payment shall be made to the
Contractor in excess of the sum total of vehicle hours plus 2% defined by the
run-blocks provided by NYC Transit. [See Article III(A)(2)].

      F. Payment will be made by NYC Transit for only those revenue vehicles
receiving pre-approval and authorization for use by NYC Transit.

      G. There shall be deducted and retained as security eight (8) percent of
the value of work certified for payment in each invoice. Such retained monies
("retainage") shall be held as security for the faithful performance by the
Contractor of all the conditions, covenants and requirements specified and
provided in this Agreement. Beginning in the first month of the second year
after the Contract start date specified in the Notice to Proceed, one-twelfth
(1/12) of the monies retained in Contract Year One shall be returned to the
Contractor. The same formula shall be applied in the third, forth and fifth
years of the Contract term. Monies retained in the fifth year of the Contract
shall be returned in accordance with final payment provisions. Retained monies
will not be returned with interest.

      H. All payments are subject to audit and revision by the Authority. In
general allowable costs shall be as specified in Federal Acquisition Regulations
(FAR) Part 31 made a part of the Agreement by ATTACHMENT NO. VII.

ARTICLE 111       INVOICES AND AUDIT

      a. The Authority shall make payments to the Contractor upon the following
terms:

         1. Fixed Costs: Monthly Lump Sum Payment - one twelfth (1/12) of each
annually fixed cost paid monthly to the Contractor as set forth in the Authority
approved fixed price schedule. Adjustments may be made by NYC Transit if it is
found that the Contractor has not provided the services, personnel, goods or any
other item contained in the Contractor's approved fixed price schedule.

         2. Variable Costs; Monthly payment per Vehicle Service Hours - payment
for vehicle service hours invoiced by the Contractor to the NYCTA not in excess
of two (2%) percent of the vehicle service hours indicated in bus blocks and
runs provided provided by NYC Transit to the Contractor. All invoices for
Vehicle Service hours must be supported by complete and adequate documentation.
Additional payment will be made for any authorized tolls for which the
Contractor has provided the required documentation.

         3. Insurance Costs: Monthly Payment per insured revenue vehicle for any
NYCTA approved revenue vehicles.


                                      C-10
<PAGE>

         4. (a) Revenue Vehicle Leasing Costs: Monthly payment per lease vehicle
for any NYCTA approved leased vehicle. Contractor must provide backup and
support documentation.

         (b) Revenue Vehicle Purchase Costs: Consistent with paragraph 13.7 of
the Technical Specifications on page T-19, as amended, reimbursement for the
costs of such vehicles will be made on a monthly basis, in an amount equal to
1/60 of the approved cost of such vehicles. Contractor must provide backup and
support documentation. At the end of the 60 month amortization period for each
such vehicle, NYC Transit may, at its option, purchase from the Contractor such
vehicle for $1.00.

         5. Liquidated damages and fare revenue paid by customers shall be
deducted by the NYCTA from the Contractor's fixed price payment each month.

         6. Mobilization Costs: will be paid upon submission of an invoice in a
form acceptable to NYC Transit.

         7. 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 211) of this
Contract.

         8. The Authority shall pay the Contractor within thirty (30) days of
its receipt of the Contractor's invoices in a form satisfactory to the
Authority. In no event, however, shall an invoice be submitted sooner than
forty-five (45) days after the start of work. Payment shall be deemed made upon
mailing by the Authority.

      B. Contractor shall certify that each invoice is accurate. Any false
certification shall render the invoice void, and the Authority shall be entitled
to recover immediately any monies paid on such invoices.

      C. All payments are subject to audit and revision by the Authority.
Contractor shall make its records available for three years (3) after the later
of termination of, or final payment under this Agreement.

      D. Invoices:

         1. Proper Invoice: 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, must set forth:

         (a) 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;

         (b) that portion of the contract price related to such payment less any
deductions, such as retainage, required pursuant to the terms hereof; and


                                      C-11
<PAGE>

         (c) 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. Supporting Documentation: The following are in addition to any other
requirement set forth in this contract with respect to what supporting
documentation must accompany an invoice:

         a. 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.

         b. In the event the contract provides for payment upon achieving stated
milestones of performance, the Contractor's invoice relating to any milestone
must be accompanied by a copy of the Project Manager's certificate, or
equivalent document, that the milestone has been achieved.

         c. In the event that the payment request is based upon a "deliverable,"
the Contractor's invoice must 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.

         d. Invoices must also be accompanied by all affidavits, time records,
staffing 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 accorance with
the terms of the contract.

      3. 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.

      4. 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 the Authority's
Prompt Payment Rules adopted by its Board on March 25, 1988.

      5. Designated Payment Office: The Designated Payment Office, to which all
invoices and supporting documentation are required to be submitted under this
contract, is as follows:


                                      C-12
<PAGE>

      E. The Contractor must submit the original and one copy of the invoice and
supporting documentation to the Designated Payment Office:

                         New York City Transit Authority
                            Disbursements Department
                        130 Livingston Street, 7th Floor
                              Brooklyn, N.Y. 11201

     The Contractor must submit one copy of an invoice to:

                         New York City Transit Authority
                              Paratransit Division
                          10 Columbus Circle, 17th Floor
                            New York, New York 11019

          Attention: Glenn Millis, Chief Paratransit Division, 94E5461

     Either of the above may be changed at any time by the Authority upon
notification in writing to the Contractor.

ARTICLE 112       LIQUIDATED DAMAGES

      A. NYC Transit 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, radio monitoring, telephone monitoring and recording,
on-street service monitoring, dispatch center inspection and random facility and
vehicle inspections. The Contractor must recognize that strict adherence to the
Contract terms and conditions in providing clean, safe, reliable,
customer-friendly effective service to the disabled community is of paramount
importance. Poor performance on the part of the Contractor resulting from a
failure of the Contractor in exercising due diligence in the performance of the
tasks listed herein may result in the imposition of liquidated damages. In the
event the Contractor shall fail to comply with the provisions set forth in this
Contract, the liquidated damages set forth in this item are hereby fixed and the
parties agree that the damages that NYC Transit will suffer by reason of such
failure to comply are not a penalty. NYC Transit reserves the right to
substitute performance standards upon consultation (and agreement) with the
Contractor. The Contractor shall strive at all times to provide service in a
manner that will maximize both productivity and efficient paratransit service.
NYC Transit shall have the right to enter the Contractor's premises at any time
without advance notice or authorization from the Contractor in order to observe
the Contractor's operations only.

      B. Should liquidated damages be assessed, the Contractor shall be so
notified in writing. The assessed amount will then be deducted from the payments
due the Contractor for the month in which the liquidated damage(s) occurred. NYC
Transit will cooperate with the Contractor to fully explore any concerns
regarding the service and performance standards. Prior to assessing any
liquidated damage(s), the following procedures will occur:

         1. NYC Transit will notify the Contractor in writing of performance
problems with respect to the service standards. The Contractor


                                      C-13
<PAGE>

shall be given a reasonable amount of time to take corrective action with
respect to the problem identified by NYC Transit.

         2. Should the problem not be correct, NYC Transit shall issue a second
letter indicating NYC Transit's intent to monitor the service closely in order
to assess the liquidated damages.

         3. Within forty-eight hours of assessment of liquidated damages, the
Contractor will be given written notice of each failure to conform to the terms
of this Contract and the liquidated damages assessment resulting from each
failure Supporting documentation will be provided at that time. Should the
Contractor wish to contest all or part of a notice of assessment of liquidated
damages, it must, within ten (10) business days from the date of such notice,
respond in writing to NYC Transit stating the reasons why such assessment is
improper, after which NYC Transit may affirm, modify, or withdraw the assessment
as it 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 shall become final and binding upon the Contractor
without further notice from NYC Transit.

      C. The following liquidated damages shall apply, unless otherwise agreed
upon:

         1. PERFORMANCE:

            a. On Time Performance:

               The Contractor shall provide ninety (90) percent on time
performance for all schedule pick-ups and drop-offs. On-time shall mean plus or
minus fifteen (15) minutes from the agreed to time. If the Contractor has failed
to provide ninety (90) percent on-time performance for all scheduled pick-ups
and drop-offs each month, the carrier will be assessed liquidated damages of
$250 for each day that NYC Transit determines the Contractor is less than ninety
(90) percent on time.

               NYC Transit may make this determination from sampling
Contractor's completed trips, the sampling to be taken from a combination of
route manifests, field surveys, customer surveys or any other reasonable
sampling methods.

            b. Shared Ride Time - Advanced Reservation:

               The Contractor shall not require any customer to share an
advanced reservation ride which is twice as long as the same ride on a
non-shared basis. In the event that NYC Transit determines that the Contractor
has exceeded this limitation, NYC Transit may assess liquidated damages in the
amount of $25 per day per occurrence.

            c. Shared Ride Time - Subscription:

               The Contractor shall not require any customer to share a
subscription ride which is twice as long as the same ride on a non-shared basis.
In the event that NYC Transit determines that the Contractor has exceeded this
limitation, NYC Transit may assess $25 per day per occurrence.


                                      C-14
<PAGE>

      2. RESERVATIONIST RESPONSE:

      In order to provide efficient and customer-friendly service, it is
important that the Contractor provide a sufficient number of reservationists
during Phase Two Operations so as to provide the customer with immediate (no
call holding nor call waiting) access to the Contractor's reservation system a
minimum of seventy-five (75) percent of the time, with the remaining twenty-five
(25) percent of the calls answered within two minutes of automated call
distribution.

      In the event that NYC Transit determines that the Contractor has exceeded
these limitations, NYC Transit may assess liquidated damages in the amount of
$100 per day.

      3. CANCELLATION "HOT LINE RESPONSE":

      Between the hours of 6:00 a.m. and 10:00 p.m. on weekdays and weekend, all
cancellations shall be handled by "live" personnel, not by recording devices so
as to provide the customer with immediate (no call holding nor call waiting)
access to the Contractor's reservation system a minimum of seventy-five (75)
percent of the time, with the remaining twenty-five (25) percent of the calls
answered within two minutes of automated call distribution. During non business
hours, all calls shall be captured by the automated call distribution system and
reviewed by the Contractor no later than 6:00 a.m. each morning.

      In the event that NYC Transit determines that the contractor has exceeded
these limitation, NYC Transit may assess $100 per day.

      4. CASSETTE TAPES:

      Cassettes tapes from tape recording devices shall be delivered to NYC
Transit within three (3) business days from date of receipt of the request by
NYC Transit. In the event that NYC Transit determines that the Contractor has
failed to do so, NYC Transit may assess damages in the amount of $50 per day per
occurrence.

      5. TRIP TICKETS:

      During Phase Two Operations, all trip tickets shall be processed as stated
in paragraphs 11.20 and 11.21, Technical Specifications and delivered to NYC
Transit within three (3) business days of the actual trips. In the event that
NYC Transit determines that the Contractor has failed to achieve this standard,
the NYC Transit may assess liquidated damages in the amount of $250 per day.

      6. PREVENTATIVE MAINTENANCE OF REVENUE VEHICLES:

      In order to maintain a serviceable fleet, the Contractor shall be required
to perform ninety-five (95) percent of all Type A, B and C inspections no more
than 400 miles and within three (3) business days the scheduled maintenance
date. The Contractor is expressly excepted from this requirement during the
first month of Phase Two Operations.

      In the event that NYC Transit determines that the Contractor has exceeded
the limitation set forth herein, NYC Transit may assess liquidated damages in
the amount of $500 per vehicle for each vehicle found in non-compliance.


                                      C-15
<PAGE>

      7. PRE & POST TRIP VEHICLE INSPECTION:

      The Contractor shall implement a program to establish a ninety-nine (99)
percent compliance with pre and post vehicle inspections as detailed in
Paragraph 14.2, Technical Specifications. In the event that NYC Transit
determines that the Contractor has exceeded this limitation, NYC Transit may
assess $100 per day for each day the Contractor is found to be in
non-compliance.

      8. ACCIDENT, DAMAGE REPAIRS:

      The Contractor is required to repair all accident damage to revenue and
non-revenue vehicles within thirty (30) days from date of the accident. In the
event that NYC Transit determines that the carrier has exceeded this limitation,
NYC Transit may assess liquidated damages in the amount of $50 per day per
vehicle.

      9. COMPLAINTS:

      Contractors shall maintain a ratio of complaints to completed trips of
1:2,500. Complaints relating to NYC Transit policy or procedure shall be not
considered for the purposes of assessing liquidated damages. In the event that
NYC Transit determines that the carrier has exceeded this limitation, NYC
Transit may assess liquidated damages in the amount of $1000 for the month in
which the carrier exceeded the limitation.

      11. TRIPS:

          a. Late Trips:

      In the event that NYC Transit determines that the Contractor is more than
30 minutes late for a scheduled pick-up, NYC Transit may assess liquidated
damages in the amount of $40.

          b. Failed Trips:

      In the event that NYC Transit determines that the Contractor is over 45
minutes late for a passenger, the trip will be considered a failure and the
NYCTA may assess liquidated damages in the amount of $60.

          c. Missed Trips:

      In the event that NYC Transit determines that the Contractor did not
perform the trip and that the Contractor's vehicle was a no-show, the trip will
be considered a missed trip and NYC Transit may assess liquidated damages in the
amount of $80. The Contractor will also be required to reimburse the customer
who was to be picked up by the no-show vehicle for any reasonable expenses
incurred by the customer in order for the customer to arrange and complete the
trip independently of the Contractor.

      11. VEHICLE CLEANLINESS:

      In order to provide a positive public image and appearance, the Contractor
will be responsible for maintaining the appearance and cleanliness of all
revenue and non-revenue vehicles used in AAR services. The word


                                      C-16
<PAGE>

appearance is deemed to mean a vehicle without readily apparent or visible
accident damage. In the event that NYC Transit determines that a vehicle is
below the cleanliness standards described in Paragraph 10.16, Technical
Specifications, or that the carrier is not performing exterior or interior
vehicle cleaning, the NYC Transit may assess liquidated damages in the amount of
$10 per vehicle per day.

      12. DRIVERS:

          a. Dress Requirements:

             In the event that NYC Transit determines that a driver in revenue
service is seen out of uniform or in a dirty or damaged uniform as described in
Section 15, Driver Requirements, Technical Specifications, NYC Transit may
assess liquidated damages in the amount of $25 per occurrence.

          b. Training Requirements:

             In the event that NYC Transit determines that a driver in revenue
service has not satisfactorily passed all required training, NYC Transit may
assess liquidated damages in the amount of $100 per driver per day. The driver
will be immediately removed from service and will not be permitted to drive
again until NYC Transit has certified that the driver has been properly trained.

          c. Vehicle Operation/Driving Requirements:

             In the event that NYC Transit determines that a driver has been
employed in revenue service after notification by NYC Transit to the Contractor
that the driver is not to be allowed to operate any AAR revenue vehicle, NYC
Transit may assess liquidated damages in the amount of $1000 per driver per day.

      13. RECORDKEEPING:

      If the Contractor fails to accurately keep, complete, and/or return
billing and other required paperwork within the time periods specified, the
Contractor shall be charged at the rate of $10 per day per item.

      14. ACCIDENT REPORTING:

      If the Contractor fails to report an accident within the required time
period, the Contractor will be charged liquidated damages of $400 per accident,
per day the report is late.

      15. UNAUTHORIZED USE OF VEHICLES:

      If NYC Transit determines that a Contractor has used any AAR revenue
service for any purpose other than that described in this RFP or otherwise
directly authorized in writing by NYC Transit, the Contractor will be assess
liquidated damages of $1,000 per vehicle per incident.

      16. UNSAFE CONDUCT:

      If NYC Transit determines that the Contractor's drivers or facility
support staff have engaged in any conduct or unsafe action which creates a
safety hazard, the Contractor will be assessed liquidated damages of $100 per
incident.


                                      C-17
<PAGE>

      17. HEATING/AIR CONDITIONING

      The Contractor shall be assessed liquidated damages of $25 per day for
each vehicle found not in compliance with heating and air conditioning standards
set forth herein.

ARTICLE 113      ENTIRE AGREEMENT

      This Contract constitutes the entire agreement and understanding between
the parties, all prior and contemporaneous representations, understandings and
agreements having been merged therein.

ARTICLE 114     PROSECUTION OF THE WORK

      A.    If, during the prosecution of the Work, unforeseen difficulties of
            any nature be encountered, the Contractor shall take every necessary
            or proper precaution to overcome the unforeseen difficulty according
            to the direction of the Project Manager and as provided in these
            Contract Documents.

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

      C.    In all operations connected with the Work, all 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 to them,
            shall be strictly complied with, and further, the Contractor shall
            comply with all applicable Federal, State and Municipal Regulations
            regarding the transportation of goods in and around the City and
            State of New York.

      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 locations of the Technical Specifications
            in details and satisfied himself as to the intent of the Technical
            Specifications relating to the Work to be performed, and he shall
            not at any time make any claim for damage or extension of time, or
            ny other demand because of any misinterpretation or misunderstanding
            of the Technical Specifications, 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 Technical
            Specifications; and shall perform such Work within the direction and
            to the satisfaction of the Project Manager.


                                      C-18
<PAGE>

      H.    The Contractor agrees to deliver and install conforming goods in
            accordance with the Technical Specifications.

      I.    All Work by the Contractor shall be within the time specified in the
            Scope of Work. If for any reason the Work cannot be performed by the
            date or dates specified, the Contractor must immediately furnish the
            Authority with written notice of such delay and reason thereof.
            Extension of time will be granted only if the delay is deemed by the
            Authority to be unavoidable as provided for in Paragraph L below.

      J.    Time is of the essence of this Contract. In the event of a delay in
            the Work for which the Contractor is not entitled to an extension of
            time under Paragraph L, the Authority may recover all damages for
            such delay.

      K.    If the Work under this Contract should be unavoidably delayed, the
            Authority may extend the time for completion of the Contract for the
            determined number of days of excusable delay provided the Contractor
            advised the Authority as required under Paragraph J above. A delay
            is unavoidable only if the delay was substantial and in fact caused
            the Contractor to miss performance dates and arose from unforeseen
            causes beyond the Contractor's control, provided the Contractor has
            taken reasonable precautions to prevent delays due to such causes
            and further provided such delays were not caused directly or
            substantially by acts, omissions, negligence, or mistakes of the
            Contractor, the Contractor's suppliers, or their agents, and could
            not adequately have been guarded against by contractual or legal
            means.

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

      M.    The acceptance of Work after the date fixed for completion of
            performance shall not be deemed a waiver of the right of the
            Authority to terminate this Contract with respect to the unperformed
            portion thereof or to require the delivery of any undelivered goods
            in accordance with this Contract.

ARTICLE 115       RISK OF LOSS

      A. Contractor assumes the risk of, and shall be responsible for, any loss
or damage to Authority property, including property, including property and
equipment leased by 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-19
<PAGE>

      C. The Contractor agrees to indemnify the Authority and hold it harmless
from any and all liability or claim for damages due to any such loss or damage
to any such Authority property described in Subsection (a) above.

      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 116       SUBCONTRACTORS

      A.    If the Contractor will cause any part of this Contract to be
            performed by a Subcontractor, the provisions of this Contract will
            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 will not be in any manner thereby discharged from
            its obligations and liabilities hereunder, but will 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 will be subject to
            the same provisions hereof as the employees of the Contractor; and
            the Work performed by the Subcontractor will 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, will state in writing to the Authority the name of the
            proposed subcontractor, the portion of the Work which the
            subcontractor is to do, the place of business of such subcontractor,
            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 will
            inform the subcontractors 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 such
            subcontractor will 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 must 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
            subcontractor must 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.

ARTICLE 117       RELATIONSHIP OF CONTRACTOR TO THE AUTHORITY

      The relationship of Contractor to the Authority is that of an independent
Contractor, and said Contractor, in accordance with its status as such,
covenants and agrees that it will conduct itself consistent with such


                                      C-20
<PAGE>

status, that it will neither hold itself out as nor claim to be an officer or
employee of the Authority (or the MTA or the City) by reason hereof, and that it
will not, by reason hereof, make any claim, demand or application to, or for any
right or privilege applicable to an officer or employee of the Authority (or the
MTA or the City), including, but not limited to, Workers' Compensation coverage,
Unemployment Insurance Benefits, Social Security coverage or retirement
membership or credit.

ARTICLE 118       DISCLOSURE

      Contractor hereby represents that to the best of its knowledge neither it
nor any of its personnel has been the subject of any investigation or 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. Breach of this
provision is expressly understood to constitute a material breach hereof.

ARTICLE 119       MOST FAVORED CUSTOMER

      The Contractor warrants and represents that the prices, warranties,
benefits and terms set forth herein are at least equal to or more favorable to
the Authority than the prices, warranties, benefits, and terms now charged or
offered by the Contractor to other customers under similar circumstances and
terms and conditions, or that may be charged or offered during the term hereof
for the same or substantially similar products or services.

ARTICLE 120       PUBLICITY

      A. Prior written approval of the Authority is required before the
Contractor or any of its employees, servants, agents or independent contractor
may, at any time, either during or after completion or termination of this
Contract, make any statement to the press or issue any material for publicity
through any media of communication bearing on the Work performed or data
collected under this Contract.

      B. If the Contractor wishes to publish a work dealing with any aspect of
performance under this Contract, or of the results and accomplishments attained
in such performance, such publication requires the prior written approval of the
Authority, which approval may be conditioned upon the Authority's obtaining
royalties from the Contractor, and also obtaining a non-exclusive and
irrevocable license to reproduce, publish, or otherwise use and authorize others
to use the publication.

ARTICLE 121       AMENDMENTS

      This Contract may be amended only by an instrument in writing executed by
the Authority and Contractor.

ARTICLE 122       ATTACHMENTS

      Attachment Numbers I, II, III, IV, V, VI and VII are incorporated in this
Contract and shall be deemed to apply to the entire Contract.


                                      C-21
<PAGE>

ARTICLE 123    RESCISSION

      In the event that the Authority elects to execute this Contract prior to
submission by the Contractor of any required document, such as insurance
policies, performance bond and DBE documentation, and approval of such items by
the Authority, the Authority may, in its sole discretion, rescind this Contract
if all such matters have not been resolved to the Authority's satisfaction
within thirty (30) Days after execution hereof.

ARTICLE 124       ORDER OF PREFERENCE

      If there is a conflict between provisions of this Agreement, the following
order of precedence shall apply

      A. Attachments
      B. Technical Specifications
      C. Terms and Conditions
      D. Price Schedule

ARTICLE 125       WARRANTY WORK AND PARTS: VEHICLE MAINTENANCE AGREEMENTS

The Contractor may choose to enter into agreements with vehicle manufacturers or
dealers by which the Contractor will perform warranty work or receive warranty
parts in exchange for cash or other valuable consideration. Any such agreement
entered into between the Contractor and a third party must receive prior written
approval by the NYCTA. The value of that work or parts received shall be passed
along in full to the NYCTA. The value of work performed or parts received shall
be the fair market value at the time of performance or delivery of parts.

The total value of any work performed or parts received shall be reported to the
NYCTA and shall be deducted from the subsequent Fixed Cost: Monthly Lump Sum
Payment as described in ARTICLE III, Invoices and Audit, (A)(1).

      All submissions will then be forwarded to the Chairman of the Vehicle
Equivalency Committee in a timely fashion for consideration as an "approved
equal."

ARTICLE 126:      VEHICLE EQUIVALENCY PROCEDURE

Any Contractor proposing a vehicle with specifications that differ from those
listed in Appendices A, B, C and D must submit those vehicle specifications to
the NYCTA Vehicle Equivalency Committee. All such submissions must be sent to
the Paratransit Director of Contract Administration as follows:

      Mr. Dennis Erkus
      Director, Contract Administration
      Paratransit Division
      New York City Transit Authority
      10 Columbus Circle
      New York, NY 10019

      Tel. No. (212) 353-5635
      Fax No. (212) 977-5126


                                      C-22
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be
effective with the date set forth in the Notice to Proceed.


_______________________________________________________________________________

CONTRACTOR:                                NEW YORK CITY TRANSIT AUTHORITY:
                                       
Signature: ______________________          Signature: _________________________
                                       
Name: ___________________________          Name: ______________________________
                                       
Title: __________________________          Title: _____________________________
                                       
Date: ___________________________          Date: ______________________________
                                  

                                      C-23
<PAGE>

                          ACKNOWLEDGMENT FOR CONTRACTOR

STATE OF ______________________)
                               )  ss.:
COUNTY OF _____________________)

      On this ______________________ day of _________________________, 1994
before me personally appeared _________________________ to me known, who, being
by me first duly sworn, did depose and say that he resides at No.
________________________________________________________ in the City of
__________________, in the County of ________________________ in the State of
_________________: that he is ____________________ of
___________________________, the corporation described in and which executed the
foregoing contract; that she knows the corporate seal of said corporation; that
one of the seals affixed to said contract is such corporate seal; that it was
affixed thereto by order of the Board of Directors of said corporation, and that
she signed his name thereto by like authority.


                                                  __________________________
                                                         Notary Public
<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

<TABLE>
<CAPTION>
                                                                            Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]                     Page 1 of 7

    Phase 1 - Start Up Team (Payment Category - Mobilization Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
<S> <C>                                        <C>        <C>              <C>
1   Consultant Labor, On-Site                                              $
--------------------------------------------------------------------------------------------
2   Consultant Labor, Off-Site                                             $
--------------------------------------------------------------------------------------------
3   Consultant Travel (give number of trips)                               $
--------------------------------------------------------------------------------------------
4   Consultant Automobile Rental/Parking                                   $
--------------------------------------------------------------------------------------------
5   Consultant Lodging (nights, rate)                                      $
--------------------------------------------------------------------------------------------
6   Consultant Meals                                                       $
--------------------------------------------------------------------------------------------
7   Consultant Telephone                                                   $
--------------------------------------------------------------------------------------------
8   Consultant Xerox                                                       $
--------------------------------------------------------------------------------------------
9   Consultant Printing                                                    $
--------------------------------------------------------------------------------------------
10  Consultant Office Rental                                               $
--------------------------------------------------------------------------------------------
11  Consultant Utilities                                                   $
--------------------------------------------------------------------------------------------
12  Consultant Miscellaneous                                               $
--------------------------------------------------------------------------------------------
                                                                  Subtotal $
                                                                           =================

    Phase 1 - Start Up, Other (Payment Category - Mobilization Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
13  Project Manager                                                        $
--------------------------------------------------------------------------------------------
14  Operations Manager                                                     $
--------------------------------------------------------------------------------------------
15  Maintenance Manager                                                    $
--------------------------------------------------------------------------------------------
16  Driver Supervisors                                                     $
--------------------------------------------------------------------------------------------
17  Dispatcher Supervisors                                                 $
--------------------------------------------------------------------------------------------
18  Scheduler Supervisor                                                   $
--------------------------------------------------------------------------------------------
19  Reservationist Supervisor                                              $
--------------------------------------------------------------------------------------------
20  Benefits. Lines 13 to 19                                               $
--------------------------------------------------------------------------------------------
21  Dispatchers                                                            $
--------------------------------------------------------------------------------------------
22  Schedulers                                                             $
--------------------------------------------------------------------------------------------
23  Reservationists                                                        $
--------------------------------------------------------------------------------------------
24  Benefits. Lines 21 to 23                                               $
--------------------------------------------------------------------------------------------
25  Drivers                                                                $
--------------------------------------------------------------------------------------------
26  Mechanics                                                              $
--------------------------------------------------------------------------------------------
27  Servicemen                                                             $
--------------------------------------------------------------------------------------------
28  Benefits, Lines 25 to 27                                               $
--------------------------------------------------------------------------------------------
29  Fuel                                                                   $
--------------------------------------------------------------------------------------------
30  Maintenance Parts & Fluids                                             $
--------------------------------------------------------------------------------------------
31  Tires                                                                  $
--------------------------------------------------------------------------------------------
32  Office Equipment                                                       $
--------------------------------------------------------------------------------------------
33  Office Furnishings                                                     $
--------------------------------------------------------------------------------------------
34  Telephone                                                              $
--------------------------------------------------------------------------------------------
35  Xerox                                                                  $
--------------------------------------------------------------------------------------------
36  Printing                                                               $
--------------------------------------------------------------------------------------------
37  Facility Rental                                                        $
--------------------------------------------------------------------------------------------
38  Facility Renovations                                                   $
--------------------------------------------------------------------------------------------
39  Utilities                                                              $
--------------------------------------------------------------------------------------------
40  Business Insurance                                                     $
--------------------------------------------------------------------------------------------
41  Vehicle Insurance                                                      $
--------------------------------------------------------------------------------------------
42  Revenue Vehicles                                                       $
--------------------------------------------------------------------------------------------
43  Non-Revenue Vehicles                                                   $
--------------------------------------------------------------------------------------------
44  Computer Equipment                                                     $
--------------------------------------------------------------------------------------------
45  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
46  Tools                                                                  $
--------------------------------------------------------------------------------------------
47  Licenses, Taxes, Permits                                               $
--------------------------------------------------------------------------------------------
48  Other Equipment (Detail)                                               $
--------------------------------------------------------------------------------------------
49  Other Operating (Detail)                                               $
--------------------------------------------------------------------------------------------
50  Other Overheads                                                        $
--------------------------------------------------------------------------------------------
51  Miscellaneous                                                          $
--------------------------------------------------------------------------------------------
                                                                  Subtotal $
                                                                           =================
                                                                           =================
                                                                     TOTAL $
                                                                           =================
</TABLE>

<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

<TABLE>
<CAPTION>

Year ONE, 1995-1996                                                         Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]                     Page 2 of 7

    Phase 2 - Operations (Payment Category - Fixed Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
<S> <C>                                        <C>        <C>              <C>
1   Consultant Labor, On-Site                                              $
--------------------------------------------------------------------------------------------
2   Consultant Labor, Off-Site                                             $
--------------------------------------------------------------------------------------------
3   Consultant Travel (give number of trips)                               $
--------------------------------------------------------------------------------------------
4   Consultant Automobile Rental/Parking                                   $
--------------------------------------------------------------------------------------------
5   Consultant Lodging (nights, rate)                                      $
--------------------------------------------------------------------------------------------
6   Consultant Meals                                                       $
--------------------------------------------------------------------------------------------
7   Consultant Telephone                                                   $
--------------------------------------------------------------------------------------------
8   Consultant Xerox                                                       $
--------------------------------------------------------------------------------------------
9   Consultant Printing                                                    $
--------------------------------------------------------------------------------------------
10  Consultant Office Rental                                               $
--------------------------------------------------------------------------------------------
11  Consultant Utilities                                                   $
--------------------------------------------------------------------------------------------
12  Consultant Miscellaneous                                               $
--------------------------------------------------------------------------------------------
13  Project Manager                                                        $
--------------------------------------------------------------------------------------------
14  Operations Manager                                                     $
--------------------------------------------------------------------------------------------
15  Maintenance Manager                                                    $
--------------------------------------------------------------------------------------------
16  Benefits, Lines 13 to 15                                               $
--------------------------------------------------------------------------------------------
17  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
18  Telephone                                                              $
--------------------------------------------------------------------------------------------
19  Xerox                                                                  $
--------------------------------------------------------------------------------------------
20  Printing                                                               $
--------------------------------------------------------------------------------------------
21  Facility Rental                                                        $
--------------------------------------------------------------------------------------------
22  Utilities                                                              $
--------------------------------------------------------------------------------------------
23  Business Insurance                                                     $
--------------------------------------------------------------------------------------------
24  Reservation Supervisor                                                 $
--------------------------------------------------------------------------------------------
25  Reservationists                                                        $
--------------------------------------------------------------------------------------------
26  Scheduler Supervisor                                                   $
--------------------------------------------------------------------------------------------
27  Schedulers                                                             $
--------------------------------------------------------------------------------------------
28  Dispatcher Supervisor                                                  $
--------------------------------------------------------------------------------------------
29  Dispatchers                                                            $
--------------------------------------------------------------------------------------------
30  Benefits, Lines 24 to 29                                               $
--------------------------------------------------------------------------------------------
31  Licenses, Taxes, Permits                                               $
--------------------------------------------------------------------------------------------
32  Other Equipment (Detail)                                               $
--------------------------------------------------------------------------------------------
33  Other Operating (Detail)                                               $
--------------------------------------------------------------------------------------------
34  Other Overheads                                                        $
--------------------------------------------------------------------------------------------
35  Miscellaneous                                                          $
--------------------------------------------------------------------------------------------
36  Non-Revenue Vehicles                                                   $
--------------------------------------------------------------------------------------------
37  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
    Subtotal Fixed Costs:                                         Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

    Phase 2 - Operations (Payment Category - Variable Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
38  Driver Supervisors                                                     $
--------------------------------------------------------------------------------------------
39  Drivers                                                                $
--------------------------------------------------------------------------------------------
40  Mechanics                                                              $
--------------------------------------------------------------------------------------------
41  Servicemen                                                             $
--------------------------------------------------------------------------------------------
42  Benefits, Lines 38 to 41                                               $
--------------------------------------------------------------------------------------------
43  Fuel                                                                   $
--------------------------------------------------------------------------------------------
44  Maintenance Parts & Fluids                                             $
--------------------------------------------------------------------------------------------
45  Tires                                                                  $
--------------------------------------------------------------------------------------------
46  Miscellaneous Maintenance                                              $
--------------------------------------------------------------------------------------------
    Subtotal Variable Costs:                                      Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
47  Vehicle Hours Bid                       
--------------------------------------------
48  Subtotal Line 40 to 48                  
--------------------------------------------
49  Divide Line 50 by Line 49               
--------------------------------------------
50  Variable Cost Per Vehicle Hour                        Per Vehicle Hour $
--------------------------------------------                               =================

    Phase 2 - Operations (Payment Category - Pass Through)
--------------------------------------------------------------------------------------------
51  Lift Van (Large)                                             (month)   $
--------------------------------------------------------------------------------------------
52  Lift Van (Small)                                             (month)   $
--------------------------------------------------------------------------------------------
53  Ramp Equipped MiniVan                                        (month)   $
--------------------------------------------------------------------------------------------
54  Sedan                                                        (month)   $
--------------------------------------------------------------------------------------------
55  Tolls                                                        (month)   $
--------------------------------------------------------------------------------------------
56  Revenue Vehicle Insurance                                    (month)   $
--------------------------------------------------------------------------------------------
    Subtotal Pass-Through Costs:                                  Subtotal $
                                                                           =================
                                                                           =================
                                                                 Total Bid $
                                                                           =================
</TABLE>
<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

<TABLE>
<CAPTION>

Year TWO, 1996-1997                                                         Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]                     Page 3 of 7

    Phase 2 & 3 - Operations (Payment Category - Fixed Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
<S> <C>                                        <C>        <C>              <C>
1   Consultant Labor, On-Site                                              $
--------------------------------------------------------------------------------------------
2   Consultant Labor, Off-Site                                             $
--------------------------------------------------------------------------------------------
3   Consultant Travel (give number of trips)                               $
--------------------------------------------------------------------------------------------
4   Consultant Automobile Rental/Parking                                   $
--------------------------------------------------------------------------------------------
5   Consultant Lodging (nights, rate)                                      $
--------------------------------------------------------------------------------------------
6   Consultant Meals                                                       $
--------------------------------------------------------------------------------------------
7   Consultant Telephone                                                   $
--------------------------------------------------------------------------------------------
8   Consultant Xerox                                                       $
--------------------------------------------------------------------------------------------
9   Consultant Printing                                                    $
--------------------------------------------------------------------------------------------
10  Consultant Office Rental                                               $
--------------------------------------------------------------------------------------------
11  Consultant Utilities                                                   $
--------------------------------------------------------------------------------------------
12  Consultant Miscellaneous                                               $
--------------------------------------------------------------------------------------------
13  Project Manager                                                        $
--------------------------------------------------------------------------------------------
14  Operations Manager                                                     $
--------------------------------------------------------------------------------------------
15  Maintenance Manager                                                    $
--------------------------------------------------------------------------------------------
16  Benefits, Lines 13 to 15                                               $
--------------------------------------------------------------------------------------------
17  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
18  Telephone                                                              $
--------------------------------------------------------------------------------------------
19  Xerox                                                                  $
--------------------------------------------------------------------------------------------
20  Printing                                                               $
--------------------------------------------------------------------------------------------
21  Facility Rental                                                        $
--------------------------------------------------------------------------------------------
22  Utilities                                                              $
--------------------------------------------------------------------------------------------
23  Business Insurance                                                     $
--------------------------------------------------------------------------------------------
24  Reservation Supervisor                                                 $
--------------------------------------------------------------------------------------------
25  Reservationists                                                        $
--------------------------------------------------------------------------------------------
26  Scheduler Supervisor                                                   $
--------------------------------------------------------------------------------------------
27  Schedulers                                                             $
--------------------------------------------------------------------------------------------
28  Dispatcher Supervisor                                                  $
--------------------------------------------------------------------------------------------
29  Dispatchers                                                            $
--------------------------------------------------------------------------------------------
30  Benefits, Lines 24 to 29                                               $
--------------------------------------------------------------------------------------------
31  Licenses, Taxes, Permits                                               $
--------------------------------------------------------------------------------------------
32  Other Equipment (Detail)                                               $
--------------------------------------------------------------------------------------------
33  Other Operating (Detail)                                               $
--------------------------------------------------------------------------------------------
34  Other Overheads                                                        $
--------------------------------------------------------------------------------------------
35  Miscellaneous                                                          $
--------------------------------------------------------------------------------------------
36  Non-Revenue Vehicles                                                   $
--------------------------------------------------------------------------------------------
37  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
    Subtotal Fixed Costs:                                         Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

    Phase 2 &  3 - Operations (Payment Category - Variable Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
38  Driver Supervisors                                                     $
--------------------------------------------------------------------------------------------
39  Drivers                                                                $
--------------------------------------------------------------------------------------------
40  Mechanics                                                              $
--------------------------------------------------------------------------------------------
41  Servicemen                                                             $
--------------------------------------------------------------------------------------------
42  Benefits, Lines 38 to 41                                               $
--------------------------------------------------------------------------------------------
43  Fuel                                                                   $
--------------------------------------------------------------------------------------------
44  Maintenance Parts & Fluids                                             $
--------------------------------------------------------------------------------------------
45  Tires                                                                  $
--------------------------------------------------------------------------------------------
46  Miscellaneous Maintenance                                              $
--------------------------------------------------------------------------------------------
    Subtotal Variable Costs:                                      Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
47  Vehicle Hours Bid                       
--------------------------------------------
48  Subtotal Line 40 to 48                  
--------------------------------------------
49  Divide Line 50 by Line 49               
--------------------------------------------
50  Variable Cost Per Vehicle Hour                        Per Vehicle Hour $
--------------------------------------------                               =================

    Phase 2 & 3 - Operations (Payment Category - Pass Through)
--------------------------------------------------------------------------------------------
51  Lift Van (Large)                                              (month)  $
--------------------------------------------------------------------------------------------
52  Lift Van (Small)                                              (month)  $
--------------------------------------------------------------------------------------------
53  Ramp Equipped MiniVan                                         (month)  $
--------------------------------------------------------------------------------------------
54  Sedan                                                         (month)  $
--------------------------------------------------------------------------------------------
55  Tolls                                                         (month)  $
--------------------------------------------------------------------------------------------
56  Revenue Vehicle Insurance                                     (month)  $
--------------------------------------------------------------------------------------------
    Subtotal Pass-Through Costs:                                  Subtotal $
                                                                           =================
                                                                           =================
                                                                 Total Bid $
                                                                           =================
</TABLE>
<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

<TABLE>
<CAPTION>

Year THREE, 1997-1998                                                        Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]                     Page 4 of 7

    Phase 3 - Operations (Payment Category - Fixed Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
<S> <C>                                        <C>        <C>              <C>
1   Consultant Labor, On-Site                                              $
--------------------------------------------------------------------------------------------
2   Consultant Labor, Off-Site                                             $
--------------------------------------------------------------------------------------------
3   Consultant Travel (give number of trips)                               $
--------------------------------------------------------------------------------------------
4   Consultant Automobile Rental/Parking                                   $
--------------------------------------------------------------------------------------------
5   Consultant Lodging (nights, rate)                                      $
--------------------------------------------------------------------------------------------
6   Consultant Meals                                                       $
--------------------------------------------------------------------------------------------
7   Consultant Telephone                                                   $
--------------------------------------------------------------------------------------------
8   Consultant Xerox                                                       $
--------------------------------------------------------------------------------------------
9   Consultant Printing                                                    $
--------------------------------------------------------------------------------------------
10  Consultant Office Rental                                               $
--------------------------------------------------------------------------------------------
11  Consultant Utilities                                                   $
--------------------------------------------------------------------------------------------
12  Consultant Miscellaneous                                               $
--------------------------------------------------------------------------------------------
13  Project Manager                                                        $
--------------------------------------------------------------------------------------------
14  Operations Manager                                                     $
--------------------------------------------------------------------------------------------
15  Maintenance Manager                                                    $
--------------------------------------------------------------------------------------------
16  Benefits, Lines 13 to 15                                               $
--------------------------------------------------------------------------------------------
17  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
18  Telephone                                                              $
--------------------------------------------------------------------------------------------
19  Xerox                                                                  $
--------------------------------------------------------------------------------------------
20  Printing                                                               $
--------------------------------------------------------------------------------------------
21  Facility Rental                                                        $
--------------------------------------------------------------------------------------------
22  Utilities                                                              $
--------------------------------------------------------------------------------------------
23  Business Insurance                                                     $
--------------------------------------------------------------------------------------------
24  Reservation Supervisor                                                 $
--------------------------------------------------------------------------------------------
25  Reservationists                                                        $
--------------------------------------------------------------------------------------------
26  Scheduler Supervisor                                                   $
--------------------------------------------------------------------------------------------
27  Schedulers                                                             $
--------------------------------------------------------------------------------------------
28  Dispatcher Supervisor                                                  $
--------------------------------------------------------------------------------------------
29  Dispatchers                                                            $
--------------------------------------------------------------------------------------------
30  Benefits, Lines 24 to 29                                               $
--------------------------------------------------------------------------------------------
31  Licenses, Taxes, Permits                                               $
--------------------------------------------------------------------------------------------
32  Other Equipment (Detail)                                               $
--------------------------------------------------------------------------------------------
33  Other Operating (Detail)                                               $
--------------------------------------------------------------------------------------------
34  Other Overheads                                                        $
--------------------------------------------------------------------------------------------
35  Miscellaneous                                                          $
--------------------------------------------------------------------------------------------
36  Non-Revenue Vehicles                                                   $
--------------------------------------------------------------------------------------------
37  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
    Subtotal Fixed Costs:                                         Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

    Phase  3 - Operations (Payment Category - Variable Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
38  Driver Supervisors                                                     $
--------------------------------------------------------------------------------------------
39  Drivers                                                                $
--------------------------------------------------------------------------------------------
40  Mechanics                                                              $
--------------------------------------------------------------------------------------------
41  Servicemen                                                             $
--------------------------------------------------------------------------------------------
42  Benefits, Lines 38 to 41                                               $
--------------------------------------------------------------------------------------------
43  Fuel                                                                   $
--------------------------------------------------------------------------------------------
44  Maintenance Parts & Fluids                                             $
--------------------------------------------------------------------------------------------
45  Tires                                                                  $
--------------------------------------------------------------------------------------------
46  Miscellaneous Maintenance                                              $
--------------------------------------------------------------------------------------------
    Subtotal Variable Costs:                                      Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
47  Vehicle Hours Bid                       
--------------------------------------------
48  Subtotal Line 40 to 48                  
--------------------------------------------
49  Divide Line 50 by Line 49               
--------------------------------------------
50  Variable Cost Per Vehicle Hour                        Per Vehicle Hour $
--------------------------------------------                               =================

    Phase 3 - Operations (Payment Category - Pass Through)
--------------------------------------------------------------------------------------------
51  Lift Van (Large)                                              (month)  $
--------------------------------------------------------------------------------------------
52  Lift Van (Small)                                              (month)  $
--------------------------------------------------------------------------------------------
53  Ramp Equipped MiniVan                                         (month)  $
--------------------------------------------------------------------------------------------
54  Sedan                                                         (month)  $
--------------------------------------------------------------------------------------------
55  Tolls                                                         (month)  $
--------------------------------------------------------------------------------------------
56  Revenue Vehicle Insurance                                     (month)  $
--------------------------------------------------------------------------------------------
    Subtotal Pass-Through Costs:                                  Subtotal $
                                                                           =================
                                                                           =================
                                                                 Total Bid $
                                                                           =================
</TABLE>
<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

<TABLE>
<CAPTION>

Year FOUR, 1998-1999                                                        Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]                     Page 5 of 7

    Phase 3 - Operations (Payment Category - Fixed Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
<S> <C>                                        <C>        <C>              <C>
1   Consultant Labor, On-Site                                              $
--------------------------------------------------------------------------------------------
2   Consultant Labor, Off-Site                                             $
--------------------------------------------------------------------------------------------
3   Consultant Travel (give number of trips)                               $
--------------------------------------------------------------------------------------------
4   Consultant Automobile Rental/Parking                                   $
--------------------------------------------------------------------------------------------
5   Consultant Lodging (nights, rate)                                      $
--------------------------------------------------------------------------------------------
6   Consultant Meals                                                       $
--------------------------------------------------------------------------------------------
7   Consultant Telephone                                                   $
--------------------------------------------------------------------------------------------
8   Consultant Xerox                                                       $
--------------------------------------------------------------------------------------------
9   Consultant Printing                                                    $
--------------------------------------------------------------------------------------------
10  Consultant Office Rental                                               $
--------------------------------------------------------------------------------------------
11  Consultant Utilities                                                   $
--------------------------------------------------------------------------------------------
12  Consultant Miscellaneous                                               $
--------------------------------------------------------------------------------------------
13  Project Manager                                                        $
--------------------------------------------------------------------------------------------
14  Operations Manager                                                     $
--------------------------------------------------------------------------------------------
15  Maintenance Manager                                                    $
--------------------------------------------------------------------------------------------
16  Benefits, Lines 13 to 15                                               $
--------------------------------------------------------------------------------------------
17  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
18  Telephone                                                              $
--------------------------------------------------------------------------------------------
19  Xerox                                                                  $
--------------------------------------------------------------------------------------------
20  Printing                                                               $
--------------------------------------------------------------------------------------------
21  Facility Rental                                                        $
--------------------------------------------------------------------------------------------
22  Utilities                                                              $
--------------------------------------------------------------------------------------------
23  Business Insurance                                                     $
--------------------------------------------------------------------------------------------
24  Reservation Supervisor                                                 $
--------------------------------------------------------------------------------------------
25  Reservationists                                                        $
--------------------------------------------------------------------------------------------
26  Scheduler Supervisor                                                   $
--------------------------------------------------------------------------------------------
27  Schedulers                                                             $
--------------------------------------------------------------------------------------------
28  Dispatcher Supervisor                                                  $
--------------------------------------------------------------------------------------------
29  Dispatchers                                                            $
--------------------------------------------------------------------------------------------
30  Benefits, Lines 24 to 29                                               $
--------------------------------------------------------------------------------------------
31  Licenses, Taxes, Permits                                               $
--------------------------------------------------------------------------------------------
32  Other Equipment (Detail)                                               $
--------------------------------------------------------------------------------------------
33  Other Operating (Detail)                                               $
--------------------------------------------------------------------------------------------
34  Other Overheads                                                        $
--------------------------------------------------------------------------------------------
35  Miscellaneous                                                          $
--------------------------------------------------------------------------------------------
36  Non-Revenue Vehicles                                                   $
--------------------------------------------------------------------------------------------
37  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
    Subtotal Fixed Costs:                                         Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

    Phase  3 - Operations (Payment Category - Variable Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
38  Driver Supervisors                                                     $
--------------------------------------------------------------------------------------------
39  Drivers                                                                $
--------------------------------------------------------------------------------------------
40  Mechanics                                                              $
--------------------------------------------------------------------------------------------
41  Servicemen                                                             $
--------------------------------------------------------------------------------------------
42  Benefits, Lines 38 to 41                                               $
--------------------------------------------------------------------------------------------
43  Fuel                                                                   $
--------------------------------------------------------------------------------------------
44  Maintenance Parts & Fluids                                             $
--------------------------------------------------------------------------------------------
45  Tires                                                                  $
--------------------------------------------------------------------------------------------
46  Miscellaneous Maintenance                                              $
--------------------------------------------------------------------------------------------
    Subtotal Variable Costs:                                      Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
47  Vehicle Hours Bid                       
--------------------------------------------
48  Subtotal Line 40 to 48                  
--------------------------------------------
49  Divide Line 50 by Line 49               
--------------------------------------------
50  Variable Cost Per Vehicle Hour                        Per Vehicle Hour $
--------------------------------------------                               =================

    Phase 3 - Operations (Payment Category - Pass Through)
--------------------------------------------------------------------------------------------
51  Lift Van (Large)                                              (month)  $
--------------------------------------------------------------------------------------------
52  Lift Van (Small)                                              (month)  $
--------------------------------------------------------------------------------------------
53  Ramp Equipped MiniVan                                         (month)  $
--------------------------------------------------------------------------------------------
54  Sedan                                                         (month)  $
--------------------------------------------------------------------------------------------
55  Tolls                                                         (month)  $
--------------------------------------------------------------------------------------------
56  Revenue Vehicle Insurance                                     (month)  $
--------------------------------------------------------------------------------------------
    Subtotal Pass-Through Costs:                                  Subtotal $
                                                                           =================
                                                                           =================
                                                                 Total Bid $
                                                                           =================
</TABLE>
<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

<TABLE>
<CAPTION>

Year FIVE, 1999-2000                                                        Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]                     Page 6 of 7

    Phase 3 - Operations (Payment Category - Fixed Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
<S> <C>                                        <C>        <C>              <C>
1   Consultant Labor, On-Site                                              $
--------------------------------------------------------------------------------------------
2   Consultant Labor, Off-Site                                             $
--------------------------------------------------------------------------------------------
3   Consultant Travel (give number of trips)                               $
--------------------------------------------------------------------------------------------
4   Consultant Automobile Rental/Parking                                   $
--------------------------------------------------------------------------------------------
5   Consultant Lodging (nights, rate)                                      $
--------------------------------------------------------------------------------------------
6   Consultant Meals                                                       $
--------------------------------------------------------------------------------------------
7   Consultant Telephone                                                   $
--------------------------------------------------------------------------------------------
8   Consultant Xerox                                                       $
--------------------------------------------------------------------------------------------
9   Consultant Printing                                                    $
--------------------------------------------------------------------------------------------
10  Consultant Office Rental                                               $
--------------------------------------------------------------------------------------------
11  Consultant Utilities                                                   $
--------------------------------------------------------------------------------------------
12  Consultant Miscellaneous                                               $
--------------------------------------------------------------------------------------------
13  Project Manager                                                        $
--------------------------------------------------------------------------------------------
14  Operations Manager                                                     $
--------------------------------------------------------------------------------------------
15  Maintenance Manager                                                    $
--------------------------------------------------------------------------------------------
16  Benefits, Lines 13 to 15                                               $
--------------------------------------------------------------------------------------------
17  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
18  Telephone                                                              $
--------------------------------------------------------------------------------------------
19  Xerox                                                                  $
--------------------------------------------------------------------------------------------
20  Printing                                                               $
--------------------------------------------------------------------------------------------
21  Facility Rental                                                        $
--------------------------------------------------------------------------------------------
22  Utilities                                                              $
--------------------------------------------------------------------------------------------
23  Business Insurance                                                     $
--------------------------------------------------------------------------------------------
24  Reservation Supervisor                                                 $
--------------------------------------------------------------------------------------------
25  Reservationists                                                        $
--------------------------------------------------------------------------------------------
26  Scheduler Supervisor                                                   $
--------------------------------------------------------------------------------------------
27  Schedulers                                                             $
--------------------------------------------------------------------------------------------
28  Dispatcher Supervisor                                                  $
--------------------------------------------------------------------------------------------
29  Dispatchers                                                            $
--------------------------------------------------------------------------------------------
30  Benefits, Lines 24 to 29                                               $
--------------------------------------------------------------------------------------------
31  Licenses, Taxes, Permits                                               $
--------------------------------------------------------------------------------------------
32  Other Equipment (Detail)                                               $
--------------------------------------------------------------------------------------------
33  Other Operating (Detail)                                               $
--------------------------------------------------------------------------------------------
34  Other Overheads                                                        $
--------------------------------------------------------------------------------------------
35  Miscellaneous                                                          $
--------------------------------------------------------------------------------------------
36  Non-Revenue Vehicles                                                   $
--------------------------------------------------------------------------------------------
37  Computer Support Services                                              $
--------------------------------------------------------------------------------------------
    Subtotal Fixed Costs:                                         Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

    Phase  3 - Operations (Payment Category - Variable Cost)
--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
38  Driver Supervisors                                                     $
--------------------------------------------------------------------------------------------
39  Drivers                                                                $
--------------------------------------------------------------------------------------------
40  Mechanics                                                              $
--------------------------------------------------------------------------------------------
41  Servicemen                                                             $
--------------------------------------------------------------------------------------------
42  Benefits, Lines 38 to 41                                               $
--------------------------------------------------------------------------------------------
43  Fuel                                                                   $
--------------------------------------------------------------------------------------------
44  Maintenance Parts & Fluids                                             $
--------------------------------------------------------------------------------------------
45  Tires                                                                  $
--------------------------------------------------------------------------------------------
46  Miscellaneous Maintenance                                              $
--------------------------------------------------------------------------------------------
    Subtotal Variable Costs:                                      Subtotal $
                                                                           =================
    Profit:                                                         Profit $
                                                                           =================

--------------------------------------------------------------------------------------------
#   Item                                       Quantity   Unit Price           Extension
--------------------------------------------------------------------------------------------
47  Vehicle Hours Bid                       
--------------------------------------------
48  Subtotal Line 40 to 48                  
--------------------------------------------
49  Divide Line 50 by Line 49               
--------------------------------------------
50  Variable Cost Per Vehicle Hour                        Per Vehicle Hour $
--------------------------------------------                               =================

    Phase 3 - Operations (Payment Category - Pass Through)
--------------------------------------------------------------------------------------------
51  Lift Van (Large)                                              (month)  $
--------------------------------------------------------------------------------------------
52  Lift Van (Small)                                              (month)  $
--------------------------------------------------------------------------------------------
53  Ramp Equipped MiniVan                                         (month)  $
--------------------------------------------------------------------------------------------
54  Sedan                                                         (month)  $
--------------------------------------------------------------------------------------------
55  Tolls                                                         (month)  $
--------------------------------------------------------------------------------------------
56  Revenue Vehicle Insurance                                     (month)  $
--------------------------------------------------------------------------------------------
    Subtotal Pass-Through Costs:                                  Subtotal $
                                                                           =================
                                                                           =================
                                                                 Total Bid $
                                                                           =================
</TABLE>
<PAGE>

                                 PRICE SCHEDULE

                               CONTRACT # 94E5461

                    FIVE BOROUGH PARATRANSIT CARRIER SERVICE

Summary: Year ONE to Year FIVE                                      Attachment 1
Circle Proposed Zone(s)  [ 1 ] [ 2 ] [ 3 ] [ 4 ] [ All ]             Page 7 of 7

          MOBILIZATION COSTS:                                  $
                                                               =================

          TOTAL FIXED COSTS:                                   $
                                                               =================

          PROFIT ON FIXED COSTS:                               $
                                                               =================

          TOTAL VARIABLE COSTS:                                $
                                                               =================

          PROFIT ON VARIABLE COSTS:                            $
                                                               =================

          SUBTOTAL:                                            $
                                                               =================

          TOTAL PASS-THROUGH COSTS:                            $
                                                               =================

                                                               =================
          GRAND TOTAL:                                         $
                                                               =================