Document:

EXHIBIT 10.25

 

A REQUIREMENTS
AGREEMENT WITH ELIGIBLE
INDEPENDENT PROVIDERS/ AGENCIES FOR THE
PROVISION OF RELATED
SERVICES TO STUDENTS
WITH DISABILITIES

 

A Requirements
Agreement entered into as
of the first day of September
2010 by and between the BOARD OF
EDUCATION OF THE CITY OF
SCHOOL DISTRICT OF THE CITY OF NEW YORK
(hereinafter, referred to as the 'Board',
BOE or DOE), with principal offices
located at 52 Chambers
Street, New York, New York 10007 and Signature
Learning Resources, Inc. (hereinafter, referred to
as the 'Contractor"), with
offices located at 19 West 21st
Street • Suite 701 New York,
New York 10010.

 

WITNESSETH

 

WHEREAS, in order to fulfill the mandates
of students with Individualized Education Programs ("IEPs'), when DOE personnel
and/or agencies under contract with the DOE are unable to serve these students, the DOE allows parents to obtain the service from
an independent service provider at no cost to the parent; and

 

WHEREAS,
the Board has identified the Contractor as an independent related service provider or agency whose anticipated
payments are expected to exceed One Hundred
Thousand ($100,000.00) Dollars per annum; and

 

WHEREAS,
the Chancellor by a Request for Authorization authorized this Requirements Agreement with the Contractor for the period
September 1, 2010 through August 31, 2012 subject to availability of funds for
each fiscal year, which Request for Authorization is hereby incorporated in
this Agreement, and affixed hereto as Attachment
A; and,

 

WHEREAS,
the Contractor represents that it is
ready, willing and able to perform all
of the services herein described.

 

NOW, THEREFORE, in consideration of
the foregoing stipulations and the terms, conditions and specifications expressed below,
the Board and the Contractor
agree and covenant as
follows:

 

1.            TERM
OF AGREEMENT

 

A.           The
Term of this Requirements Agreement (hereinafter, referred
to as the "Term") shall commence on
September 1, 2010 and extend through
August 31, 2012, unless earlier
terminated pursuant to the provisions
of this Agreement.

 

B.           This
Agreement may be terminated at any time
upon fifteen (15) days prior written notice
from the Chancellor or his/her designee.
No claim for damages will be
made by or allowed to the Contractor
because of said termination.

 

2.            ESTIMATED
CONTRACT AMOUNT

 

The estimated
annual cost for services rendered
pursuant to this Agreement
is as listed on the RA (Attachment A).

 

    	 

    	 

    

 

3.            SERVICES
UNDER THIS AGREEMENT

 

Hereinafter,
the term "Services" shall
be deemed to describe collectively all
of the services, that the Contractor furnishes
to the Board and/or to any of its
students, their parent(s) or guardian(s). The Contractor shall provide the Services expressed
in Attachment A, as required by the Individualized Education Program ("IEP") for each student, and in accordance
with the individual Related Services Authorization
("RSA") form signed by each parent and approved by the
Board (or execution of the Pre-K
Related Services Agreement, as applicable). Furthermore, notwithstanding any language or provision(s) in any Attachments
to the contrary,
the following terms
and conditions shall govern the
Contractor's performance of Services under
this Agreement:

 

(A)            This
is a non-exclusive Requirements Agreement for
the procurement of such professional services as may be required by the Board. The Board shall not be obligated or limited in any
manner or to any extent to assign any minimum or maximum number of
related services sessions as applicable
to the Contractor. This Agreement is effective upon the approval by the Board
of a completed Related Services Authorization
(RSA) form validly
executed by the parent
and the Contractor (and the individual
provider of Contractor is an agency).

 

{B)            The
Board will utilize the Services of the
Contractor only after the contracted Service Provider for that service sector
is unable to provide the Services under the aforementioned awarded contract.

 

(C)            The
Contractor shall comply with any and all
policies and procedures of the
Board's Office of Special Education Initiatives, as specified by the Chancellor or his designee(s).

 

(D)            The
Contractor shall permit the Chancellor and/or his/her designee(s) to conduct periodic
monitoring of all aspects of the Services performed
under this Requirements Agreement. Such monitoring may
include, without limitation, on-site visits, inspections of
the Contractor and
its service records, and observations
of the Contractor's staff while performing any and all of the Services
under this Requirements Agreement.

 

(E)            The
Contractor shall:

 

{i) Serve the
student in accordance with the recommendation
prescribed on the Individualized Education Program (i.e., language, frequency, duration and group size).

 

(ii) Complete first attend information and
immediately forward it to the appropriate
office designated by the Board to
receive such information.

 

(iii) The
rate to be charged for each service shall
be the lesser of
(a) the rate for the service listed
on Attachment A; or (b) the lowest rate
charged by the Contractor to other
clients for the service in question in
the same district. However, in the case where the Contractor has a
contract with the DOE
to provide related services, in no event shall the rate charged for a particular related
service under this Agreement exceed the highest
rate charged by the Contractor for
that related service through its existing DOE contract.

 

(iv) Make no requests to the parent/guardian
or student for payments for services provided.

 

(v) Submit
bills directly to the Board of
Education, and to the attention of
the office designated by the Board to
receive the bills, using the format designated by the Board.

 

(vi) Maintain
weekly student specific progress notes and
submit them to the appropriate Committee on Preschool Special
Education (CPSE) or Committee on School Age Education (CSE) within the timeframe required
by the Board.

 

(viii) Participate in Individualized Education
Program conferences and parent/guardian meetings when requested
at no additional cost to the Board.

 

(ix)  Participate
in Board conferences/workshops when requested at no additional cost
to the Board.

 

    	 

    	 

    

 

(x) Maintain
and submit Related Service Attendance information in the form and manner required
by the Board; in addition, prepare or participate in
the preparation of reports, documents
and/or in the collection of data
or information requested by the Board
or other agencies, at no additional cost
to the Board, in order that the Board
receive Medicaid reimbursement for the costs associated with the provision of related
services. Each individual providing service to the
student must have a National Provider Identifier (NPI) number entered in the appropriate
field on the electronic invoice. Failure to include
the NPI number of the direct service provider
may result in non-payment.

 

(xi) For preschool
students contact the appropriate CPSE if the related service provider is notified or
becomes aware of a change in the student's
name, address, etc., or if
the provider is made aware of the
parent/guardian's intent to
withdraw the student from the CPSE recommended service. The provider
must complete the Student Information (T-2P)
Notice and submit it to the
student's current CPSE.

 

(xii) For preschool students if an approved
student (who has been referred to a related service provider and who has
not yet established a first attend date) is unavailable to receive services
within five (5) days from the student's first eligible date, the
provider shall contact the parent to
ascertain the reason for the delay. If the provider
is unable to ascertain the reason for the absence
the provider must promptly complete and forward the T-2P form to
the CPSE.

 

(xiii) For preschool students, contact
the appropriate CPSE if the student
is absent five (5) consecutive sessions
without a legal excuse.

 

(xiv) For
preschool students, contact
the appropriate CPSE
if the location where the related services will be provided changes from the initial location. A new IEP conference is not
required; however, the provider may change the location only with the knowledge
and consent of the parent/ guardian. The provider must notify the CPSE of
the new location within five
(5) school days of this
change.

 

(xv) Any
Service Provider currently under
contract to provide related services to the Board may not provide related services
as an independent provider in Integrated Service Center(s)/district(s) for which it
has been awarded a separate contract.

 

(xvi) Unless· a waiver has been obtained,
the service provider that conducted the student's evaluation may not be selected to provide the related service to the student.

 

(F)      Any individual who leaves the employ of
the Board or any other New York City agency may not provide service related services
as an independent provider under
the independent provider agreements for a minimum of one year following the termination
of employment, in accordance with the
provisions of the New York City Charter Chapter
68 and Chancellor's Regulation C-110, unless a waiver
is obtained.

 

(G)      Any
individual currently employed by the Board may
not provide related services
as an independent provider unless otherwise approved by the Board in writing in compliance
with all governing Board rules
and regulations.

 

4.         PAYMENT
TERMS AND CONDITIONS

 

If the Contractor well and faithfully provides
the Services in compliance with the terms, conditions and specifications of this Requirements Agreement,
the Board shall pay the Contractor the unit
charge(s) as stated in paragraph
3(E)(iii). The Contractor shall be paid only for those units of services requested by the Board and provided
by the Contractor. Accordingly, the Contractor shall not be entitled to receive, nor shall
it make any demand for, any additional payment(s). Any provision(s) in the
Attachments to the contrary notwithstanding,
the Board shall make all
payments to the Contractor for Services
under this Agreement according to the terms and
conditions of this paragraph 4 both as
above and as follows:

 

    	 

    	 

    

 

(A)        The Contractor shall submit
monthly invoice(s) to the Board for the Services rendered. The Contractor shall state
clearly on each invoice all Services performed, and shall certify on each invoice(s)
that the Services for the requested
payment have been performed fully in compliance with this Requirements Agreement.  Contractor
shall be responsible for obtaining the signature of the parent or guardian and if required
the school administrator verifying that services have been rendered satisfactorily
by the Contractor.

 

(B)        Contractor shall not provide any Services
prior to the approval of a completed Related Services Authorization Form validly executed by the parent and the Contractor
(and individual provider if the Contractor
is an agency). These forms shall not be issued in excess of
the appropriations then available therefore,
and if issued through inadvertence or otherwise,
shall be deemed null and
void and utterly invalid. The Board
shall have no liability for
payment of same.

 

(C)        During the Term
of this Agreement
and any renewal period, or extension thereof,
the Contractor shall maintain an
accurate running total of the dollar amount
of all orders for services;

 

(D)        The Contractor
shall not increase the price of any
services during the Term of this Agreement, any renewal period, or extension thereof.

 

(i)
         If at any time the Contractor
shall reduce the price of any service, the Board shall be
entitled to such reduced price as of the effective date of such reduction. The
Contractor shall immediately notify the Board of such reduction, and upon receipt
of such notice, this Agreement (specifically, Attachment A) shall be deemed amended to reflect such
price reduction retroactively to the
effective date of the reduction.

 

(ii)        Any
amounts paid the Contractor for
Program services after the effective date of the price reduction, that were paid
through inadvertence or otherwise at the price that
was in effect before the effective date of the price reduction, shall
be returned or refunded to the Board. The Board may,
at its option, choose to recoup such amounts
from any other payments due the Contractor under this Agreement, or any other
agreement, written or otherwise, between the Contractor and the
Board. The obligation of the Contractor to return or refund
such amounts shall remain an obligation of the Contractor and/or its successors or assigns,
that survives the
termination of this Agreement.

 

(iii)       The Contractor's
failure to provide any notice
specified in this paragraph, or perform any of the
terms or conditions stated in this paragraph (D), shall be deemed to
be a material breach of this
Agreement.

 

(E)        No invoice shall be
approved by the Board until the Services described therein shall have
been received and found satisfactory.
Contractor's invoices shall be supported by contemporaneously kept time records,
pay vouchers and other supporting documents as required. Contractor shall certify on
all invoices the days and the hours worked by the individual provider. The Board will process invoices with all deliberate
speed and will use its best efforts to insure prompt payment within
sixty (60) days. All books, records, bills,
reports or materials deemed necessary
by the Board to substantiate the
validity of claims
for compensation shall be made
available for review.

 

(F)        If the Contractor
fails or refuses to provide reasonable evidence to support any charge(s) for
which it requests payment, the Board shall
not be required to
pay such charge(s).  If such charge(s),
or any part thereof, shall have been previously
paid, the Contractor shall immediately refund the full, appropriate amount upon
the Board's request.

 

(G)        No expenses shall be incurred under this
Agreement which are not ordinary, necessary and reasonable or which are contrary to law, public policy or Board policy.

 

(H)       This Agreement and all consideration hereunder
are subject to pre-audit, contemporaneous audit
and post-audit by the Board, the
Comptroller of the City of New York (Comptroller"),
and any designee(s) of the Board. No audit
by the Board or its designee(s)
shall be binding on the Comptroller.

 

(I)         The Contractor
shall maintain and retain for six (6) years from termination
of this Requirements Agreement, adequate time, payroll,
personnel and expense records relating to
the Services, and such other tapes, records, cards,
invoices, papers and things as are necessary to assure proper accounting and
audit of the funds
payable hereunder. The Contractor shall make said items available
for inspection by the Board, the Comptroller, or their designees,
upon demand.

 

    	 

    	 

    

 

5.            REPORTING
REQUIREMENTS

 

The Contractor shall comply fully with all
requests by the Board for both fiscal and programmatic reports,
and, without limitation, and all other types of reports, information, data, and
so forth in such formats and frequency as determined by the Chancellor or his designee(s).

 

6.            INSURANCE

 

A.            The
Contractor shall obtain all
required coverage from insurers licensed by the New York State
Superintendent of Insurance to do
business in New
York State having a
rating of at least "A-" (Excellent) and a financial rating of "X",
as rated by the most recent Best's Insurance Rating Guide. Not later than thirty (30)
days after the date of execution of this
Agreement, the Contractor shall submit to the Board evidence of the insurance coverage herein
described. The Contractor shall arrange with its carrier
to have the Board and
the City of New York appear as an additional insureds on each policy and Certificate of Insurance for all
required coverage. The Contractor shall send a
copy of each insurance policy or insurance certificate
to the Board of Education, Vendor
Resources Unit, 65 Court Street, 12th Floor,
Brooklyn, NY 11201. The Board's receipt of
policies or certificate(s) shall be a
condition precedent to payment by the Board under this Agreement. Furthermore
the Contractor shall transmit an informational copy of
this Agreement to its insurance carrier(s) together with a cover letter(s),
the cover letter(s) shall identify the Contractor's insurance policy(ies) and/or account
number(s), that alerts and informs the carrier(s) of the existence of this
Agreement and the particular insurance
provisions contained herein. The Contractor shall obtain:

 

(i) Commercial General Liability Insurance
coverage for bodily
injury, (including but not limited to death, sickness disease and impairment),
property damage and personal injury, caused
either, directly or indirectly by any act(s) of commission or omission, negligent
or otherwise of  the Contractor or the Contractor's
agents, servants, employees, officers, owners, directors, partners,
subcontractors or any other representatives. The liability limit under this commercial
general liability insurance coverage
shall be in an amount not less than Two Million
Dollars ($2,000,000.00) per occurrence. Any
general aggregate limit shall apply separately
to each premises at which Contractor's
operations are performed. Coverage on
an occurrence basis is preferred.

 

(ii) Workers' Compensation Insurance
as prescribed by applicable law, and Employers Liability Insurance
with coverage of not less than One Million Dollars ($1,000,000.00) for each accident, and each employee for
disease;

 

(iii) (Note: This may
be waived if individual provider is
not using a motor vehicle to travel to the
students.) Motor Vehicle Liability Insurance and shall insure the Contractor, its employees
and agents, the Board, and the City of
New York, during the performance of
work under this Agreement, against all present and
future claims for bodily injury, sickness, disease, death, and property damage as shall arise because of a
motor vehicle accident. The limit of liability shall be
at least One Million Dollars ($1,000,000.00) each
accident for bodily injury and
property damage. Such damages shall include all
injury to or destruction
of property of such claimant(s), as well as
the loss of use occasioned by the accident;

 

(iv) (Note: This may be waived if the Contractor
and Individual provider do not provide services on Board premises.) Property Loss
Insurance in the minimum amount of Fifty Thousand Dollars ($50,000.00) per occurrence protecting the supplies,
equipment and property,
etc., of the Board against "All Risks" of loss, which include,
but are not limited to, fire, lightning,
windstorm, hail, riot, civil commotion, vandalism, malicious mischief, burglary,
theft, floods, earthquakes, hurricanes, tornadoes
and other perils, including mysterious disappearance while supplies,
etc., are in the possession, control or responsibility of the Contractor, subcontractor
or anyone directly or indirectly employed by either of them; and

 

    	 

    	 

    

 

(v) Professional Malpractice Liability Insurance
coverage in an amount not less than
Two Million Dollars ($2,000,000.00) each claim and aggregate for any injury or damage
that is in any way connected with or related
to this Agreement.

 

(B) The Contractor's insurance policy(ies)
must be endorsed to allow severability of interest and rights of cross-claim. Insurance
coverage in the amount provided for herein shall not constitute a limit
of the Contractor's liability and shall not relieve the Contractor for
any liability that might exceed such
amounts, nor shall the Board or the City
be precluded from taking such
other actions as are available to the Board
or the City under
any other provisions of this Agreement
or otherwise.

 

(C) The
Contractor shall not obtain or use any insurance policy(ies) or
contract(s) for purposes of this Agreement that contains any endorsed
exclusions relating to the additional insured's negligence, relating to the maintenance,
use and operation of
the additional insured's realty or personalty, or relating to any other activities
by the additional insured that arise from, or in the context of, this Agreement.

 

(D)        The Contractor
shall maintain the levels of insurance coverage
prescribed hereinabove throughout the Term including
but not limited to, original, additional, renewal and
extension periods

 

(E)        Required
Provisions. The Contractor shall ensure
that every policy for all
of the insurance coverage required pursuant to this Agreement shall contain
the following provisions via an endorsement attached
to every such policy: (i) Any and all
notices that the insurer(s) shall provide to the Board shall be addressed
to the Chancellor or his/her designee(s) at the address stated above; (ii) The
Contractor's insurance policy(ies) or contract(s) shall not be terminated, revised, modified or otherwise changed in such a manner
as to reduce or limit the Contractor's coverage for any services under this Agreement in
any way, unless the affected insurer(s) shall have provided at least thirty (30) days
advance written notice to the Chancellor or his/her designee(s) regarding such
termination, revision, modification or other change. If an insurer(s) notifies
the Board of the termination of any required coverage, the Contractor shall provide
written evidence, e.g., a new certificate
of insurance, before the effective date contained in such notice(s) that
the affected insurance coverage has been
fully replaced. If an insurer(s)
notifies the Board of any non-termination
revision, modification or other change that causes the Contractor's insurance coverage
to be out of compliance with the requirements
of this Agreement, the Contractor shall
cure such non-compliance before
the effective date contained in such notice(s).

 

(F)        If professional
or commercial general liability
insurance has been issued on a "Claims made" basis, the
Contractor must comply with the following additional conditions. The Contractor
must either: (i) Provide certificates of insurance
evidencing the above coverages for a period of two years after final payment for the contract Such certificates shall
evidence a retroactive date, no later
than the beginning of the Contractor's work under this contract, or (ii) Purchase
an extended (minimum two years) reporting period
endorsement for the policy or policies in
force during the term of this contract
and evidence the purchase of this extended reporting period endorsement by means of a certificate of insurance or a copy of the
endorsement itself.

 

(G) Any deductibles
or retentions shall be disclosed by the Contractor and each subcontractor and
shall be subject to advance written approval by the Chancellor or his/her designee(s).
Any deductible or retention amounts elected
by the Contractor or imposed by the Contractor's
and/or any Subcontractor's insurer(s) shall be the sole responsibility of the
Contractor and/or the affected subcontractor.

 

(H) If the Contractor
and/or any subcontractor do not meet this
Agreement's insurance requirements, the Contractor
shall forward a written request to the Chancellor's designee for
a waiver in writing of the
insurance requirement(s) not met, or
approval in writing of alternate insurance coverage, self-insurance, or group self-insurance arrangements.
If the Chancellor's
designee shall deny the
request, the Contractor and each
affected Subcontractor must comply with
this Agreement's specified insurance requirements.

 

    	 

    	 

    

 

7.          INDEMNIFICATION

 

The Contractor shall
defend, indemnify and hold harmless
the Board and the City of New York for
all claims, damages or other liabilities
arising from any act(s) of commission or omission, negligent or otherwise, by the
Contractor and/or the Contractor's employees, agents, servants, officers, directors,
owners, partners, subcontractors or any other representatives.

 

8.           SECURITY
CLEARANCE

 

A. All Contractor staff are
required to undergo the Board's Security Clearance Procedures and
must be cleared to work with
Students by the Designated Security Clearance
Office prior to commencing services with direct contact with Students or having access to confidential student information.
This obligation applies regardless of whether
an individual has been fingerprinted by another agency, (e.g., NYC Department of Investigations or
a private security firm). If a staff member has
been fingerprinted by the Board
after July 1, 1990, pursuant to any
Agreement with the Board, the Staff member does not
have to be reprinted.

 

B. Contractor
shall grant the Board access to all
Staff members' personnel records upon request, unless otherwise prohibited
by law, for the
purpose of conducting a background
check and monitoring compliance with Security Clearance
Procedures.

 

C. The Executive
Director of the Division of Human Resources ("DHR") for the Board or
his/her designees shall determine, on
an ongoing basis, whether and
to what extent any Staff shall be
ineligible to provide services under this Agreement for security
reasons. The Board shall have the right to require the removal of any
Staff who is the subject
of an investigation by DHR pending a final determination. In the event the
Executive Director or his/her designees determine that Staff is ineligible, the Contractor
does hereby consent and agree to abide
by the following:

 

(1) The
Board Will notify the Contractor
and the individual of
the specific grounds
for the decision and will afford the individual and/or Contractor an opportunity
to present information on his/her/its
own behalf; and,

 

(2) Immediately upon notification, the Contractor
shall remove and bar the affected individual and/or entity from providing any services in furtherance
of this Agreement, unless and until the decision is
reversed or modified; and,

 

(3) Immediately upon notification, the
Contractor shall assign another Staff member to fulfill the duties and
responsibilities of the removed
individual and/or entity in connection with the performance of this Agreement,
unless and until the decision is reversed or modified.

 

(4) Contractor shall make no
demand for, nor be entitled to receive, any additional compensation
for costs arising from the debarment
of any one or more of its Staff.

 

D. The Contractor
agrees not to hire or retain any
person as a Staff member for purposes of this Agreement who is required
to undergo Security Clearance Procedures and
who refuses to grant authorization for fingerprinting or criminal
record review; who has not completely
and truthfully reported information concerning
his/her criminal convictions; or who has a criminal conviction record, subject to and
consistent with Article 23-A of the New York
State Correction Law.

 

E. Contractor is
required to advise its Staff to notify
Contractor in the
event that any Staff is arrested
and charged with a felony, misdemeanor or violation
in any jurisdiction. Thereafter, Contractor shall:

 

(1) notify the Board's
Office of Personnel Investigation, in
writing, by facsimile, at (718) 935-2726, or by
hand delivery to 65
Court Street, Room 102, Brooklyn,
New York Within twenty-four hours of discovering such arrest; and

 

    	 

    	 

    

 

(2) submit
a copy of (a) the criminal complaint, (b)
a court order or disposition
resolving the case and (c) any other documents deemed necessary by the Designated Security Clearance
Office.

 

F. Contractor  shall
be responsible to pay for all  fingerprinting costs 
at the time of fingerprinting.

 

G. Any waiver of the
Security Clearance Procedures set forth herein
or approval required hereunder shall not be
effective unless in writing by
the Chancellor or his
designee.

 

H. The Contractor understands and acknowledges
that payment for services under this Agreement is conditioned, in part, upon the Contractor's compliance
with this "Security Clearance" Section and that in accepting payment, the Contractor represents that the Contractor
is in full compliance.

 

I. Contractor's failure to comply with
any provision under this "Security Clearance" Section may result
in the withholding of payment and/or termination of this Agreement at the discretion of the Board. Additionally, in the event
that Provider fails to comply with any
provision in this "Security Clearance" Section, the Board shall have
the right to impose liquidated damages in the amount of
Two Hundred Dollars ($200.00) per day and
set-off such amount from any monies
due and owing
to the Contractor
until Contractor complies with the
applicable provision.

 

9.            PERSONNEL/LICENSE
REQUIREMENTS

 

(A)         The
Contractor shall supply all supervisory staff
necessary to complete successfully the performance
of this Agreement.

 

(B)         The
Contractor shall retain only certified, licensed,
competent personnel to provide the Services herein
described.

 

(C)         The
related services must
be provided only
by the individual provider named
on each student's RSA form. In the event that an individual provider must changes,
a new RSA form must be completed and signed by the parent and Contractor, and
submitted to the Board
for approval.

 

(D) The requirements for the providers
of related services under this Agreement
are listed below. Contractor shall not be entitled to payment for related services performed
by individuals who do not possess valid
and appropriate licenses and certification as listed below.

 

•           Counseling:
A New York State license and
current registration as a Mental
Health Counselor, Clinical Social Worker or Psychologist

 

•           Health
Services by a Registered Nurse for Schools Program and Health Services for
Transportation: A New York State license
and current registration as a Registered Nurse and current certification
in Cardio-Pulmonary Resuscitation, as well as Automated External Defibrillation (CPRIAED).

 

•           Health
Services by a Health Aide: Supporting documentation that the individual has been trained
as a Health Aide.

 

•           Occupational
Therapy: A New York State license and current registration as an Occupational Therapist.

 

•           Physical
Therapy: A New York State license and current registration as a
Physical Therapist.

 

•           Speech
Therapy: A New York State
license and current registration as a
Speech/Language Pathologist and a New York
State Education Department certificate as a Teacher of the Speech and Hearing Handicapped
or Teacher of Students with Speech and Language Disabilities. Please note: Clinical Fellowship Year (CFY)
candidates must be directly supervised by their CFY NYS licensed
SLP holding the previously mentioned credentials. In addition,
CFY candidates must also hold the initial Teacher of Speech Language Disabilities certification and
have an approved application on file with New York State for their CFY.

 

    	 

    	 

    

 

•           Hearing
 Education Services: A New York State  Education
Department certificate as a Teacher of Deaf
and Hearing Impaired or Teacher of Deaf
and Hard of Hearing.

 

•           Vision
Education Services: A New  York State Education Department certificate as a Teacher
of Blind/Partially Sighted or Teacher of Blind
and Visually Impaired.

 

•           Evidence
of Bilingual Proficiency:  The following licenses or certifications
are acceptable: The passing results of the New York State Education Assessment (BEA) or other 
valid language proficiency assessment; and/or  (b) a New York
State Education Department Bilingual Extension Certificate. Reports of Language
Proficiency, formerly conducted by Colleges/Universities
are no longer acceptable.

 

10.         CHANCELLOR'S
DESIGNEE(S)

 

Wherever mentioned in
this Requirements Agreement, the Chancellor's designee(s) shall be the Executive
Director, Office of Related and  Contractual Services and/or such 
other person(s) as the Chancellor shall designate.

 

11.          CONFIDENTIALITY

 

A.           In
the course of the Services under this Agreement, the Contractor will have access to certain of
the Board’s and the Board’s students’ Confidential
Information as defined in paragraph (C) herein. Without the Board's written consent, the
Contractor shall not disclose any Confidential Information unless required by law or
court order. The Contractor shall use such Confidential Information only for
the purposes for which it was provided by the Board. The Contractor shall advise its employees and agents with access to the Confidential
Information of its confidentiality. Upon the termination of work on this project, the
Contractor shall return all Confidential Information that has been provided and
any analyses or other documents prepared by the Contractor which reflect Confidential Information.

 

B.         The Contractor and all
Contractor Personnel shall adhere in every respect to the law, Board policy
and the Chancellor's regulations concerning confidentiality of student records. The Chancellor's
Regulation A-820 governing access to and the disclosure of information contained in student records are incorporated into this
Agreement by this reference. The Contractor shall submit to the Board any and all information
and data that the Contractor and Contractor Personnel
collect pursuant to this Agreement unless otherwise prohibited by law.

 

C.         "Confidential Information" means:
(i) any personally identifiable information related to Board students,  student families
or guardians, teachers, staff, agents and/or volunteers; (ii) any information marked "confidential" or any other information
that a reasonable person under similar circumstances would consider to
be confidential or proprietary at the time of disclosure, notwithstanding a failure to make 
it or identify it as such; and (iii) all derived based thereon; whether in oral, written, graphic, or machine-readable
form.         Confidential Information of the BOE includes, but is not limited
to, names, addresses, contact information, school, school district, grades or other
reviews, scores, analysis or evaluations, records,
correspondence, activities or associations, financial information, social security numbers
or other identifying numbers or codes,
date of birth or age, gender,
religion, sexual preference, national origin, socio-economic status (including free/reduced lunch status), race, ethnicity,
special education status, or English Language Learner status. The Board may provide
the Contractor with certain Confidential Information, as necessary for performance of the Services,
including Participant students'
grades, transcripts, attendance data, and school schedule.

 

    	 

    	 

    

 

D.         Contractor agrees to:

 

(i)         Hold the Confidential Information of the
BOE in strict confidence and not
to disclose Confidential Information of the BOE to any third
parties nor make use of such Confidential Information for its own benefit or for the benefit of another,
or for any use other than the purpose of this
Agreement.

 

(ii)        Only disclose the Confidential
Information of the BOE to its employees or agents who need to know the Confidential
Information of the BOE, and in those instances, only to the extent justifiable by that need,
and ensure that all such entities
and personnel comply with the terms of this Agreement.

 

(iii)       Adhere in every respect to the Law, BOE
policy and the Chancellor's regulations concerning confidentiality of personally identifiable
pupil records, including Chancellor's Regulation A-820.

 

(iv)       Hold
all individually identifiable information obtained, learned or developed by Contractor
confidential pursuant to applicable provisions of the Family Educational Rights and Privacy Act (20
U.S.C. 1232g) and any applicable regulations
promulgated thereunder. Contractor understands
that the release of confidential information
to persons or agencies not authorized to receive
such information is a
violation of US
federal law.

 

(v)        Whenever required by BOE, Contractor shall
promptly surrender (or destroy if surrender is not practicable) all Confidential Information
of the BOE and all media containing same to the BOE and certify, in writing,
that all of the foregoing materials have
been surrendered or destroyed in
accordance with this Agreement.

 

E.        Unauthorized disclosure of Confidential
Information by the Contractor, its Contractor
Personnel and agents may result in civil and/or
criminal penalties under New York State and Federal laws. Moreover, in addition
to all other remedies that Board may have, the
Board shall be entitled to specific performance and
injunctive or other equitable relief
as a remedy for
any breach of confidentiality

 

12.            BOARD
AUTHORITY

 

The supervisory
and disciplinary authority of the Board, the Chancellor, Superintendents, Principals
and other Board staff over staff,
pupils and buildings of the City School
District of the City of New York shall not be diminished in
any manner by this Agreement.

 

13.         OWNERSHIP
OF DOCUMENTS AND OTHER MATERIALS

 

Any reports, evaluation
documents, work papers, notes, correspondence, visual and/or sound recordings,
and other forms of documentation generated under this Agreement,
as well as any materials the Contractor is required to furnish the Board, including
drafts and reproduction copies thereof,
shall be and remain exclusive property of the Board. Upon request
by the Board, the Contractor shall deliver all such materials to
the Board. Except in connection with the performance of its obligations
pursuant to the Agreement, the Contractor shall not publish,
cause or allow to be published, or license the use of
the above- expressed  documentation
and or recordings without prior written approval from  the Chancellor or
his designee(s). The Contractor may
otherwise keep copies of such materials for internal use in
connection with performance of this Agreement.

 

14.            CHANGES
IN OWNERSHIP/PARTICIPANTS

 

The Contractor
shall be responsible during the Term of the Agreement for notifying the Chancellor or
his/her designee(s) in
writing within ten (10) calendar days, of
any changes in any of the following: (A) beneficial owners (including, without
limitation, parent and over- parent entities), limited or
general partners, silent or apparent partners,
major shareholders (more than five percent stock ownership), elected or
appointed officials, officers and/or
directors of the Contractor; (B) subsidiary and/or affiliated entities that are directly
or indirectly involved in the performance
of this Agreement; (C) consultants, sub-consultants and/or subcontractors directly or indirectly involved in the
performance of this Agreement; (D) transfer
payees or payment assignees; and (E)
any relationship that might involve or create a conflict of
interest.

 

    	 

    	 

    

 

15.            NO
SUBCONTRACTING WITHOUT THE CONSENT
OF THE BOARD

 

Contractors and their staff(s) are
prohibited from subcontracting to
other agencies, firms or individuals
without the prior written approval of the Chancellor's Designee. In the
event of such approval this Agreement shall
not create any relationship between the
Board and any of the Contractor's consultants, sub-consultants and/or subcontractors.
All claims, actions, disputes
and/or other controversies arising under
any formal, informal, written and/or oral agreement and/or other relationship between
the Contractor and any one or more of its consultants, sub-consultants and/or subcontractors
shall be and remain the Contractor's sole province,
interest and responsibility including subcontractors.

 

16.            NO
OTHER FEE CHARGES

 

The Contractor shall
not charge any student, their
parent(s) or guardian(s) for
any Services provided under this
Requirements Agreement.

 

17.            INCORPORATION
OF TERMS AND CONDITIONS

 

The following
document is hereby incorporated by this
reference into this Agreement: the standard "Terms
and Conditions" of the Board, which are hereto affixed as
Attachment B.

 

18.            CONFLICTS
OF INTEREST

 

The Chancellor's Regulation on Conflicts of Interest C-110 is hereby
incorporated by this reference into the Agreement
as if set forth herein in its entirety.

 

19.            ORDER
OF GOVERNANCE OF THIS DOCUMENT AND ITS ATIACHMENTS

 

The following
order of governance shall prevail in the event of a conflict with the document and
any attachments: first Attachment A,
then this document, then Attachment
B.

 

20.            HEADINGS

 

The paragraph
headings of this Agreement are inserted
for reference only and shall not
be used to interpret this Agreement
in any way.

 

21.            EXECUTORY
CLAUSE

 

This Agreement
shall be deemed executory only to the extent of monies available to the Board for
the performance of its terms, and no liability
shall be incurred by the Board
beyond the monies so available.

 

22.            AFFIRMATION
NO DEBT

 

The Contractor
affirms and declares that said Contractor is not in arrears to the City of New York
upon any debt, contract or taxes and is not a
defaulter, as a surety or otherwise, upon any
obligation to the City of New York,
and has not been declared not responsible, or disqualified, by any agency of the City of New York, nor is there any proceeding
pending relating to the responsibility or
qualification of the Contractor to receive
public contracts.

 

23.            REPRESENTATIONS

 

The Contractor
does hereby represent and
warrant to the Board
the following:

 

(i)             Contractor has the full power and
authority to execute and deliver this Agreement and to
perform all of its obligations
hereunder; and

 

    	 

    	 

    

 

{ii)            That
the execution and delivery of this Agreement have been duly authorized by all necessary
action of the Contractor and constitutes the
valid and legally binding obligation of the Contractor, enforceable against
the Contractor in accordance with
its terms.

 

{NO FURTHER
TEXT ON THIS PAGE)

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
the parties have executed this Agreement as
of the year and day first  above written.

  

	BOARD OF EDUCATION OF THE CITY 

    SCHOOL DISTRICT OF THE CITY OF 

    NEW YORK 	 	CONTRACTOR 
	 	 	 	 	 
	BY:	/s/ Roger Platt	 	BY: /s/	Jared Bauer
	 	 	 	 	 
	 	For the Chancellor	 	 	Jared Bauer
	 	 	 	 	Print Name
	 	 	 	 	 
	 	 	 	 	VP of Operations
	 	 	 	 	Title
	 	 	 	 	 
	 	 	 	 	16-1503758
	 	 	 	 	Tax Identification Number (Required)

 

Approved as
to Budget, Program

Description of Services
and

Availability of Funds:

 

	BY:	/s/ Ava Mopper 	 
	Director	 
	Office of Related and Contractual Services	 

 

THIS
CONTRACT FORM HAS BEEN APPROVED BY THE NEW YORK
CITY DEPARTMENT OF EDUCATION OFFICE OF
LEGAL SERVICES AND THE NEW
YORK CITY LAW DEPARTMENT. NO ALTERATIONS,
INSERTIONS, OR DELETIONS ARE PERMISSIBLE AND ANY SUCH ALTERATIONS, INSERTIONS, OR DELETIONS
SHALL BE DEEMED NULL AND VOID.

 

    	 

    	 

    

 

BOARD OF EDUCATION ACKNOWLEDGMENT

 

	STATE OF NEW YORK	)
	CITY OF NEW YORK	) 
	ss: COUNTY OF NEW YORK	) 

 

On this 25th
day of April , in the year 2011 before
me personally appeared Roger Platt, on behalf of the BOARD
OF EDUCATION OF THE CITY OF NEW YORK
and acknowledged that he/she executed
the foregoing Agreement on behalf of said BOARD OF EDUCATION OF THE
CITY OF NEW YORK. 

 

/s/ Adeathra Williams

ADEATHRA WILLIAMS

Notary Public,
State of New York

No. 01W16202741

Qualified
in New York County

Commission Expires
03/23/2013

 

CONTRACTOR
ACKNOWLEDGMENT

 

	STATE OF NEW YORK	) 
	CITY OF NEW YORK  	)
	ss.: COUNTYOF	)

  

On this 5th day of April, 2011, before me personally came
Jared Bauer, to me known and who, being duly sworn, did depose and say that he is the VP of Operations of Interactive Therapy Group,
described herein and who executed the foregoing agreement, and duly acknowledged to me that he duly authorized to execute the same
on behalf of the Interactive Therapy Group for the purposes herein mentioned.

 

/s/ Robin Sikora

ROBIN E. SIKORA

Notary Public,
State of New York

No. 01S16034517

Qualified
in Nassau County

Commission Expires
December 13, 20 13

 

    	 

    	 

    

 

ATTACHMENT A

 

REQUEST
FOR AUTHORIZATION

 

    	 

    	 

    

 

REQUEST FOR AUTHORIZATION
TO ENTER INTO REQUIREMENTS AGREEMENTS
FOR THE PROVISION OF
RELATED SERVICES TO STUDENTS
WITH DISABILITIES AGES 3 TO 21 YEARS

 

 

	
        Estimated

        Annual Total

        Contract Amount
	
         

        Funding

        Source
	
         

        Contract Term
	
         

        Options to

        Renew
	
         

        Procurement

        Method
	
         

        Is Contract

        Retroactive?
	
         

        Contract Type

	$ 5,490,829/$10,981,658	Tax Levy	2 Years(September 1,2010 to August31, 2012)	None	Court MandatedServices	No	RequirementsAgreements
	
         

        Vendor Name & Address
	
         

        Various; see table
        below.

 

	
         

        Service Requestor/Contract Manager
	
         

        Division of
        Contracts and Purchasing Contact

	
        Ava Mapper, Director

        Office of School Health
        (OSH)/

        Office of Related
        & Contractual Services (ORCS)
	
         

        Susan Naste, Contract Manager

        Funded &
        Special Services Procurement (FSSP)

 

STATEMENT OF PURPOSE

 

The Chancellor's
approval is sought to enter
into requirements contracts with independent
providers for special education related services (Related Services). Independent
providers are necessary to fulfill statutory,
regulatory and court ordered
mandates pertaining to the provision
of related services to students certified as having a disability.

 

The following
vendors are recommended for a Related
Services Contract:

 

    	 

    	 

    

 

	 	 	 	 	 	Estimated	 
	 	 	Independent Provider 		 	Annual Amount	 
	 	 	 	 	 	 	 
	1	 	 	City Sounds of New York	 	$	399,955	 
	 	 	 	Chelsea Arts Building	 	 	 	 
	 	 	 	134 West 26th Street Suite #602	 	 	 	 
	 	 	 	New York, New York 10001	 	 	 	 
	 	 	 	 	 	 	 	 
	2	 	 	Greater New York Services Home Care	 	 	 	 
	 	 	 	535 Kent Avenue	 	$	358,000	 
	 	 	 	Brooklyn, New York 11211	 	 	 	 
	 	 	 	 	 	 	 	 
	3	 	 	Interactive Therapy Group	 	 	 	 
	 	 	 	1 Adler Drive	 	$	350,435	 
	 	 	 	East Syracuse, New York 13057	 	 	 	 
	 	 	 	 	 	 	 	 
	4	 	 	Keep Children Moving	 	 	 	 
	 	 	 	244 Fifth Avenue S#267	 	$	2,141,560	 
	 	 	 	New York, New York 10001	 	 	 	 
	 	 	 	 	 	 	 	 
	5	 	 	Kenneth J. Wachstick	 	 	 	 
	 	 	 	196-14 Pompeii Avenue	 	$	110,000	 
	 	 	 	Holliswood, New York 11423	 	 	 	 
	 	 	 	 	 	 	 	 
	6	 	 	Kids In Harmony	 	 	 	 
	 	 	 	227 Harmony Drive	 	$	131,065	 
	 	 	 	Massapequa Park, New York 11762	 	 	 	 
	 	 	 	 	 	 	 	 
	7	 	 	Movement Matters	 	 	 	 
	 	 	 	Alice Chiu	 	$	1,171,837	 
	 	 	 	264 Canal Street	 	 	 	 
	 	 	 	New York, New York 10013	 	 	 	 
	 	 	 	 	 	 	 	 
	8	 	 	Occupational Therapy ON	 	 	 	 
	 	 	 	250 West 57th Street-Suite 814	 	$	105,000	 
	 	 	 	New York, New York 10107	 	 	 	 
	 	 	 	 	 	 	 	 
	9	 	 	P’Tach	 	 	 	 
	 	 	 	1428 36th Street-Suite 211	 	$	138,353	 
	 	 	 	Brooklyn, New York 11218	 	 	 	 
	 	 	 	 	 	 	 	 
	10	 	 	Signature Learning	 	 	 	 
	 	 	 	19 West 21st Street-Suite 701	 	$	286,676	 
	 	 	 	New York, New York 10010	 	 	 	 
	 	 	 	 	 	 	 	 
	11	 	 	Speak Out New York	 	 	 	 
	 	 	 	12-48 Clintonville Street	 	$	180,678	 
	 	 	 	Whitestone, New York 11357	 	 	 	 
	 	 	 	 	 	 	 	 
	12	 	 	Susin Gladstone	 	 	 	 
	 	 	 	135 East 83rd Street-4B	 	$	117,270	 
	 	 	 	New York, New York 10028	 	 	 	 
	 	 	 	 	 	 	 	 
	Total Estimated Annual Amount 	 	$ 	5,490,829 	 

 

    	 

    	 

    
  

DISCUSSION

 

The DOE is mandated
by federal and state law, as well
as by judgment in federal court, to evaluate and provide special education
related services to identified students with disabilities. The DOE's Standard Operating Procedures Manual: The Referral,
Evaluation and Placement of School Age Students
with Disabilities (dated February 2009) outlines
a broad range of special education
services and provides a basis for Individualized Education Programs
(IEP). IEPs include Related Service recommendations. Related Services support the participation of
students with disabilities in general
education classrooms. Those services include
occupational therapy, physical therapy, speech therapy,
nursing, and counseling in English and other
languages. The delivery of these services
must be provided in a timely fashion.

 

In cases where New
York City Department of Education (DOE)
personnel and agencies under contract
with the DOE are unable to meet this mandate, services may be obtained by parents from
licensed/certified independent providers. They are obtained through the Related Service
Authorization (RSA) procedure described below. These contracts are for related service
providers estimated to provide
more than $100,000 per year in services. Doing so assures
the DOE that large providers have
contractual obligations in addition to
those stated in the RSA.

 

The RSA
process begins when a student is
recommended to receive a
related service and the
DOE does not have either in-house staff
or contracted agency staff available.
The RSA allows parents to obtain the
needed services from an appropriately licensed
or certified independent provider, at no cost to them. 
The related services may be provided
at the student's school, home, or at the
provider's place of business. Providers must be
approved by the respective Committee
of Special Education (CSE) and Children First Network (CFN) before the start of
service.

 

The Office of Related & Contractual Services
sets the rate schedule for RSA services. The rates vary depending on the service type,
language (monolingual/bilingual), group size, and/or session length (current schedule attached). 
All DOE-contracted providers entering
into a formal agreement authorized by this
RA must adhere to the same rate schedule.

 

The subject
contracts are not pursuant to procurements
and are therefore not subject
to the 2009 Education Law provisions regarding
Panel for Educational Policy approval and registration
before implementation.

 

DCP conducted background reviews in VENDEX
and its own internal records for contracts estimated $1,000,000 and less. For those
contracts estimated at over $1,000,000, the following data
bases were reviewed: Various criminal data bases, D&B,
Lexis, Westlaw, OSHA, Federal Debarment List,
Department of Justice, New York  state
 Department of Taxation, Uniform Commercial
Code, Workers Compensation Debarred List,
New York State Division of Corporations,
SEC, and the
New York State Charities Bureau. No Advices of
Caution or significant
adverse information were uncovered with the
following exceptions:

 

•                     Greater
New York Services Inc.: An affiliate of
the prime vendor has an
outstanding $359,965 IRS lien from
October 2009. DCP obtained a letter from
the IRS stating that the
company is working with the IRS on a payment by installment
agreement.

 

•                     Keep
Children Moving Therapy LLC: Keep
Children Moving was involved in a 2006 case
investigated by the SCI when
the company was known as KCM Therapy.
The sole owner reported to SCI that two of its independent providers had submitted
time sheets falsely describing the services provided to
students. One of them allowed an unidentified male to attend OT sessions
with school children. Since the
owner reported the matter to SCI, and since the SCI report did not recommend any action
be taken against KCM or sole owner,
this is not believed that the matter should
bar an affirmative determination of
responsibility.

 

All vendors are deemed responsible. 

 

    	 

    	 

    

 

RELATED SERVICE AUTHORIZATION -
4 FORM — RATE SCHEDULE FOR 

INDEPENDENT PROVIDERS OF
RELATED SERVICES 

 

	Type of Related Service	 	Language	 	Group  Size	 	Maximum

Rate

	 	
        Session

        Length

	
        Counseling:

        Licensed Psychologist
	 	Monolingual/Bilingual	 	Individual/Group	 	$	45	 	30 minutes
	
        Counseling:

        Mental Health Counselor
	 	Monolingual/Bilingual	 	Individual/Group	 	$ 	45	 	30 minutes
	
        Counseling:

        Licensed Clinical Social
        Worker
	 	Monolingual/Bilingual	 	Individual/Group	 	$ 	40	 	30 minutes
	HeaHh: Registered Nurse	 	Monolingual	 	Individual/Group	 	$ 	45	 	30 minutes
	
        Health:

        Health Aide
	 	Monolingual	 	Individual/Group	 	$ 	20	 	60 minutes
	Hearing Education Services	 	MonolinguaUBilingual	 	Individual/Group	 	$ 	45	 	30 minutes
	Sign Language Interpreter	 	MonolinguaUBilingual	 	Individual/Group	 	$ 	30	 	30 minutes
	Occupational Therapy	 	Monolingual	 	Individual/Group	 	$ 	45	 	30 minutes
	Physical Therapy	 	Monolingual	 	Individual/Group	 	$ 	45	 	30 minutes
	Speech Therapy	 	Monolingual	 	Individual	 	$ 	45	 	30 minutes
	Speech Therapy	 	Monolingual	 	Group of2	 	$ 	56.25	 	30 minutes
	Speech Therapy	 	Monolingual	 	Group of3	 	$ 	67.50	 	30 minutes
	Speech Therapy	 	Monolingual	 	Group of4	 	$ 	78.75	 	30 minutes
	Speech Therapy	 	Monolingual	 	Group of 5 or more	 	$ 	90	 	30 minutes
	Speech Therapy	 	Bilingual	 	Individual	 	$ 	54	 	30 minutes
	Speech Therapy	 	Bilingual	 	Group of2	 	$ 	67.50	 	30 minutes
	Speech Therapy	 	Bilingual	 	Group of3	 	$ 	81	 	30 minutes
	Speech Therapy	 	Bilingual	 	Group of4	 	$ 	94.50	 	30 minutes
	Speech Therapy	 	Bilingual	 	Group of 5 or more	 	$ 	108	 	30 minutes
	Vision Education Services	 	Monolingua/Bilingual	 	Individual/Group	 	$ 	45	 	30 minutes
	Orientation/Mobility Specialist	 	Monolingual/Bilingual	 	Individual/Group	 	$ 	45	 	30 minutes

 

    	 

    	 

    

 

ATTACHMENT B

 

BOARD'S STANDARD TERMS AND CONDITIONS

 

    	 

    	 

    

 

TERMS
AND CONDITIONS

 

1.                  Definitions

 

A.           Words
used in this Agreement shall have their ordinary meanings in
the English language, except that scientific,
technical, specialized or foreign words shall be given
their appropriate scientific, specialized or foreign
meanings, and definitions specifically provided
elsewhere in the Agreement shall apply.

 

B.           The
following words, names and
titles shall have the following meanings:

 

(1)          "The
Board" means the Board of Education
of the City School District of the City of New
York.

 

(2)          "The
City'' means the City of
New York.

 

(3)         "Contract Budget Detail" means
the document attached to and incorporated into the Agreement explaining and
limning how funds
paid hereunder are to be expended by
the Contractor.

 

(4)          ''The
Comptroller" and "The Commissioner of Finance" mean
the Comptroller and the Commissioner
of Finance of the City, respectively.

 

(5)          ''The
Chancellor· means the Chancellor of the
Board.

 

(6)          "Approved," "Required,"
"Directed," "Specified," "Designated" or "Deemed Necessary," unless otherwise expressed,
mean approved, required, directed, specified, designated, or deemed necessary, as
the case may be by the Chancellor or his
designee.

 

(7)          "Completion" means full and
complete compliance with every requirement of the Agreement
by the Contractor as certified by the
Chancellor or his designee.

 

(8)           "Final
Payment" means (i) the payment or
refund by the Board or
City of any moneys that exhausts the
amount of money made available under the Agreement
or (ii) any payment marked "Final
Payment."

 

2.                   Captions

 

The headings of this Agreement, the
paragraphs, and subparagraphs of the Agreement,
and of any attachments, are included solely for convenience and reference, and
they shall not be used in any way to interpret
this Agreement.

 

3.                  Conditions
Precedent

 

This Agreement shall not become effective or
binding upon the Board until: (1) it shall have been approved as to legal sufficiency by the Board's Office of Legal Services;
(2) it shall have been executed by the Chancellor;
(3) it shall have
been approved as to legal authority by
the New York City Law
Department; (4) it shall
have been registered by the Comptroller; (5)
it shall have been
approved by the New York State Education Department, if applicable; and, (6)
the Comptroller shall have issued a certificate indicating there remains unexpended and unapplied a balance of 
the appropriation or fund applicable hereto sufficient to pay the estimated expense of performing
the Agreement as certified by the Board. A Requirement Agreement for an extended
period will require an endorsement upon the
Agreement from time to time as services and/or
items and materials are ordered, of the sufficiency of the appropriation applicable towards the payment for
said services and/or materials as and when ordered. (Rev. 4/16/01)

 

    	 

    	 

    

 

4.                  Compliance
with Laws

 

In connection with the performance
of this Agreement, the
Contractor shall comply with
all applicable laws, rules and regulations. The parties hereto agree that every
provision of law required to be inserted herein
be deemed a part hereof. It is
further agreed that if any
such provision is
not inserted or is incorrectly inserted,
through mistake or otherwise, this Agreement
shall be deemed amended so as to
comply strictly with the Law.

 

5.                  Unlawful
Provisions Void

 

If this
Agreement contains any unlawful
provisions or portions thereof, they shall be
deemed deleted from the Agreement and
the remainder of the Agreement shall
remain in full force and
effect.  If the deletion of
such provision frustrates the purpose
of this Agreement, either party may make
application to the Chancellor's designee
for relief. (Rev. 10/4/02)

 

6.                   Religious
Activity Prohibited

 

There
shall be no religious
worship, instruction, proselytizing, or other
religious activity in connection with the performance
of this Agreement

 

7.                   Political
Activity Prohibited

 

No Board
property provided to
the Contractor hereunder for the
purposes of this Agreement shall be
used for any political activity or to further the election or defeat of any candidate for
public office. As used herein the
term "Board property" shall include,
but not be limited to, supplies,
work sites, funds advanced
and services.

 

8.                   Publication
and Publicity

 

The Contractor
or anyone employed by the Contractor may not publish the results of its participation
or findings in the performance of
this Agreement without the prior
written approval of the Chancellor or his designee.  All
approved publications shall
acknowledge that the program is supported by
funds from the Board. Five true copies
of each approved publication shall be furnished
to the Board without charge. (8/29/88)

 

9.                   Copyright

 

If the Contractor or anyone employed by the
Contractor shall write, record or otherwise produce copyrightable material within the scope or
in furtherance of this Agreement, the Board shall be considered the author
for purposes of copyright, renewal of
copyright, and termination of copyright and,
unless expressly waived in a written instrument signed by the Chancellor
or his designee, the owner of all of the
rights comprised in the copyright. (6/88)

 

10.                   Patents

 

Any invention or discovery arising out of or
developed in furtherance of this Agreement shall be promptly and fully reported to
the Board. The Board shall have
the exclusive right to apply for
patent protection on such invention or discovery and to determine how the rights in said
invention or discovery, including rights under
any patent issued thereon, shall be disposed of
and administered.

 

11.                   Accounting
for Property

 

If any property is acquired
by the Contractor with funds
provided by the Board under this
Agreement, the property shall
be deemed purchased
by the Board for
the use of the
Contractor during the term
of the Agreement shall be
permanently embossed "Property of New
York City Board of Education" and shall be
returned to the Board, at the Contractor's
expense, within thirty (30) days after the end
of said term, unless the Contractor is  otherwise
notified in writing by the Chancellor or his designee. (6/21/88)

 

    	 

    	 

    

 

12.           Non-Reimbursable
Expenses

 

The following items may not
be claimed as a direct or indirect
cost of the Services provided under
this

Agreement:

 

	a.	rental expense of apartments;
	b.	interest on loans;
	c.	penalties for delinquent filing of tax returns;
	d.	political or charitable contributions;
	e.	advertising and promotions;
	f.	legal expenses;
	g.	key-man life insurance premiums;
	h.	federal, state and city income taxes, state and city franchise taxes, and any costs for the preparation of such tax returns;
	i.	expenses incurred in preparing for operations;
	j.	cost of employee meals and lodging except when traveling outside the City and pursuant to the Contract Budget Detail of this Agreement;
	k.	entertainment, gratuities, and any other items of a personal nature;
	I.	long distance telephone calls unless directly related to the services provided under the terms of this Agreement;
	m.	any expense not ordinary, necessary or reasonable in the performance of the Agreement.

 

13.          Limitation
on Overhead

 

Notwithstanding any
provision of this Agreement to the
contrary, the Contractor shall be reimbursed for overhead costs equal to
the lesser of either (1)
the amount specified in the
Contract Budget Detail of this Agreement
or (2) the amount calculated by multiplying
the total direct labor cost plus
fringe benefits stated in the Contract Budget
Detail of this Agreement by
a fraction, the numerator of which shall
be the total of all the Contractor's overhead
costs during the term of  this Agreement for all operations,
and the denominator of
which shall be the total
of all of the Contractor's direct labor
costs plus fringe benefits during the Term
of this Agreement for all operations.

 

14.         No Extra
Compensation

 

The Contractor shall not seek, ask for, demand,
sue for or recover, as extra compensation or
otherwise, any sum for labor, materials or Services
other than the compensation agreed upon
and fixed.

 

15.         Invoices
and Payments

 

The Contractor
shall furnish proof
of performance with each invoice,
and shall comply with
all Board requirements concerning the manner in
which invoices are to be submitted. The Contractor shall not be entitled to
demand or receive full or partial
payment, until each and every one
of the provisions of this Agreement
is complied with, and the Chancellor or his designee shall have given written certification to that effect. Nothing contained
herein shall be construed to affect
the right hereby reserved by the Board to reject the
whole or any portion of
the performance, should said certification
be inconsistent with the terms
of this Agreement, or
otherwise erroneously given.

 

16.         Cancellation
of Grant Funding

 

If the
goods or Services to be provided hereunder are to be paid for, in whole or
in part, by means of grant
funding received by the
Board from federal, state, city or private
sources, the obligation to pay
the Contractor shall be subject
to the continuing availability of said
funding. The Board shall notify the Contractor
within five (5) business days from the date
the Board receives written notice of the cancellation
of grant funding, in whole or in part, whereupon the Contractor may cease further performance
of this Agreement to the extent said performance would not be supported by grant funding. However, the Board may, at its
option, require completion of
performance of this Agreement by the Contractor upon giving written assurance,
signed by the Chancellor or his designee, within fifteen (15) business days
of the date
the Board receives written notice of such
cancellation, that the completed
performance of this Agreement shall
be supported by other available
funds.

 

    	 

    	 

    

 

17.         No Estoppel

 

The Board, City,
and their respective departments, divisions
and offices, shall not be precluded or estopped by a statement
or document issued by or on behalf
of the Board or
the City, from indicating the
true value of Services
performed and supplies furnished
by the Contractor or by
any other person pursuant
to or as a result of this Agreement, or from indicating that any such return
or certificate is untrue or incorrect
in any particular, or that
the Services performed
and supplies furnished or any part
thereof do not  in fact conform to the provisions of the Agreement Notwithstanding
any such statement or document, or payment in accordance therewith,
the Board and the City shall not be precluded or
estopped from demanding and
recovering from the Contractor such
damages as may be sustained by reason
of the Contractor's failure to
comply with the provisions of this
Agreement.

 

18.         Acceptance
of Final Payment

 

Receipt and negotiation by the Contractor,
or by any person claiming under
this Agreement, of the Final Payment hereunder,
notwithstanding whether such payment
be made pursuant to any judgment or order of any court,
shall constitute a general release
of the Board from any and all claims and liability for
anything done, furnished, or relating
to the labor, materials, or services provided, or
for any act of omission or commission of the Board or its agents and employees.
Said release shall be effective against the Contractor
and the Contractors representatives, heirs, executors,
administrators, successors, and assigns.

 

19.         Claims-
Limitation of Action

 

No action
at law or equity shall be maintained by
the Contractor, its successors or assigns, against the Board on any claim based upon
or arising out of this Agreement, or out of anything done in connection with this Agreement, unless such action
shall be commenced within six (6) months after the date of filing of the voucher
for final payment hereunder or within six
(6) months of the required completion date for the services performed hereunder, whichever
is sooner. None of the provisions
of Article 2 of the Civil Practice Law
and Rules shall apply
to any action against the Board arising out
of this Agreement.

 

20.         Notices

 

The Contractor’s address stated on page
1 of this Agreement is hereby designated as the place where all notices, letters or
other communications directed to the Contractor
shall be served, mailed or delivered. Any notice, letter or other communication directed to the Contractor and
delivered to such address, or sealed in a post-paid wrapper and deposited in any post office box regularly maintained
by the United States Postal Service, shall
be deemed sufficient service thereof upon the Contractor. Said address may be changed
at any time by an instrument in writing, executed and acknowledged by the Contractor
and delivered to the Chancellor’s designee. Nothing herein contained
shall be deemed to preclude or render inoperative
personal delivery of any notice,
letter or other communication, written or oral, to the
Contractor. Whenever it
shall be necessary
or required to prove the delivery
of any notice, an affidavit describing such delivery
shall be conclusive evidence of such
delivery.

 

21.         Amendments
and Waivers

 

A.
                  This Agreement may be amended by a
written instrument signed by an
authorized officer for the Contractor, and
by the Chancellor or his designee. No amendment materially affecting the substance
hereof shall be effective unless authorized by the Chancellor,
and a copy of said authorization is attached
to the amendment and incorporated
therein. (Rev. 11/27/02)

 

B.
                  No
waiver by the Board of any term
or condition hereof shall be effective
unless in writing and signed by the
Chancellor or his designee. Any
waiver shall be
specifically limited to its terms,
and shall not be
deemed applicable to subsequent like
circumstances.

 

    	 

    	 

    

 

C.
                  Any purported oral
amendment or waiver shall be void.

 

22.
         Suspension of Deliveries

 

The
Chancellor or his designee, may postpone, delay, or suspend the delivery of the goods or Services, or any part thereof, without
additional compensation to the Contractor. In such event, (A) the time established for performance by the Contractor of any duty
during the Term of this Agreement may, at the Contractor's option, be extended for the number of days the Contractor was delayed
by said suspension, postponement, or delay provided the Term is not thereby extended; however, (B) the Term may, at the Board's
option, be extended for the number of days the Contractor was delayed by said suspension, postponement, or delay.

 

23.
         Cancellation

 

A.
                 If the Contractor violates
any provision of this Agreement, the Chancellor or his designee may pursue any legal or equitable remedies available to the Board.
In addition, the Chancellor or his designee may seek to have the Contractor declared in default by a panel to be designated by
the Chancellor. In the event that the Chancellor's designee shall determine the Contractor to be in default, the Board may cancel
this Agreement and shall thereafter be relieved of all liability hereunder. Upon a finding of default in violation of this contract,
the Contractor shall be deemed not responsible and disqualified from bidding for a period of four years, unless in such finding
of default, a lesser penalty is imposed by reason of mitigating circumstances. (Rev.10/4/02)

 

B.
                 In the event of breach of
this Agreement by the Contractor, the Board shall have the right to cancel and terminate said Agreement, and the Contractor shall
be liable to the Board for any additional cost of completion of the within services, the Board's other costs in connection with
the termination, reletting and completion of the services. All such costs, along with any liquidated damages for delay provided
herein, may be assessed by the Board against the Contractor and deducted by the Board from payment to be made to the Contractor
under this or any other Agreement at any time between the Contractor and the Board or City. In the event that said costs exceed
all sums owed at the termination date of this Agreement, the Contractor shall pay the amount of such excess to the Board upon
notice from the Board of said amount, and in the event that said costs and liquidated damages are less than the sum payable under
this Agreement as if same had been  completed  by the Contractor, the Contractor shall forfeit all claims to the difference to
the Board.  If the Board undertakes to secure the services or any part thereof under this section of the Agreement, the certificate
of the Chancellor or his designee indicating the amount of services secured, the cost and excess cost, if any, of completing this
Agreement, and the amount of liquidated damages hereunder, shall be conclusive and binding upon the Contractor, its assigns and
all other claimants.

 

24.
         Board Determination

 

The
Chancellor or his designee shall in all cases determine the acceptability of the labor, materials, or Services which are delivered
pursuant to this Agreement, including but not limited to their quality, delivery, and condition, and shall in all cases decide
every question which may arise relative to the performance of this Agreement. The Contractor may not rely upon, and the Board
shall not be bound by, any explanations, determinations or other statements by or from the Board which are not in writing and
signed by the Chancellor or his designee.

 

25.
         Investigations

 

25.1
             The Contractor agrees to cooperate fully and faithfully
with any investigation, audit or inquiry conducted by a State of New York (State) or City of New York (City) governmental agency
or authority that is empowered directly or by designation to compel the attendance of witnesses and to examine witnesses under
oath, or conducted by the governmental agency that is a party in interest to the transaction, submitted bid, submitted proposal,
contract, lease, permit, or license that is the subject of the investigation, audit or inquiry.

 

    	 

    	 

    

 

25.2(a)            If any person who has been advised
that his or her statement, and any information from
such statement will not be used
against him or her
in any subsequent criminal proceeding refuses
to testify before a grand jury or
governmental agency or authority empowered directly or by designation to compel the
attendance of witnesses and to examine witnesses
under oath concerning the award of, or performance
under, any transaction, agreement, lease,
permit, contract, or license entered into with the
City, the State, or any political
subdivision or public authority thereof, or
the Port Authority
of New York and New
Jersey, or any local development corporation
within the City, or any public
benefit corporation organized under the
laws of the State of New York;
or,

 

25.2(b)           If any person
refuses to testify for a reason other than the assertion of his or
her privilege against self-incrimination in
an investigation, audit or
inquiry conducted by a City
or State governmental agency
or authority empowered directly or by designation to compel the attendance
of witnesses and to take testimony
under oath, or by the governmental agency that is
a party in interest in, and is seeking testimony
concerning the award of, or performance
under, any transaction, agreement,
lease, permit, contractor license entered
into with the City, the State, or any political subdivision thereof or any local
development corporation within the
City, then:

 

25.3(a)            The
commissioner or agency head
whose agency is
a party in interest to the transaction,
submitted bid, submitted proposal, contract,
lease, permit, or license may
convene a hearing, upon not less than
(5) days written notice to
the parties involved to determine
if any penalties should attach for the failure of
a person to testify.

 

25.3(b)            If
any non-governmental party to the hearing
requests an adjournment, the commissioner or agency head who convened the hearing
may, upon granting the adjournment, suspend
any contract, lease, permit, or license
pending the final determination pursuant to
paragraph 25.5 below without the City
and Board incurring any penalty or damages
for delay or otherwise.

 

25.4                 The penalties
which may attach after a
final determination by the commissioner
or agency head
may include but shall not exceed:

 

(a)             The disqualification for a period not to
exceed five (5) years from the date of an adverse determination for any person, or any entity
of which such person was a member
at the time the testimony was sought, from submitting
bids for, or transacting business with, or entering into
or obtaining any contract, lease, permit
or license with or from the City
and Board; and/or

 

(b)             The
cancellation or termination of any and
all such existing City and Board
contracts, leases, permits or licenses that the refusal to testify concerns
and that have not been assigned as permitted under
this agreement, nor the proceeds of which pledged, to an unaffiliated and unrelated institutional lender for fair value prior
to the issuance of the notice scheduling
the hearing, without the City and Board incurring any penalty or damages on account
of such cancellation or termination; monies lawfully due for goods delivered, work done, rentals, or fees
accrued prior to the cancellation or termination shall be paid by
the Board.

 

25.5                 The
Commissioner or agency head shall consider and address
in reaching his or her determination and in assessing
an appropriate penalty the factors in
paragraphs (a) and (b)
below. He or she may also consider, if relevant
and appropriate, the criteria established
in paragraphs (c) and (d) below in addition to
any other information which may be relevant and
appropriate:

 

	 	(a)	The party's good faith endeavors or lack thereof to cooperate fully and faithfully with any governmental investigation or audit, including but not limited to the discipline, discharge, or disassociation of any person failing to testify, the production of accurate and complete books and records, and the forthcoming testimony of all other members, agents, assignees or fiduciaries whose testimony is sought.
	 	 	 
	 	(b)	The relationship of the person who refused to testify to any entity that is a party to the hearing, including but not limited to, whether the person whose testimony is sought has an ownership interest in the entity and/or the degree of authority and responsibility the person has within the entity.

 

    	 

    	 

    

 

	 	(c)	The nexus of the testimony sought to the subject entity and its contracts, leases, permits or licenses with the City and the Board.
	 	 	 
	 	(d)	The effect a penalty may have on an unaffiliated and unrelated party or entity that has a significant interest in an entity subject to penalties under 25.4 above, provided that the party or entity has given actual notice to the commissioner or agency head upon the acquisition of the interest, or at the hearing called for in 25.3(a) above gives notice and proves that such interest was previously acquired. Under either circumstances the party or entity must present evidence at the hearing demonstrating the potential adverse impact a penalty will have on such person or entity.
	 	 	 
	25.6	(a)	The term "license" or "permit' as used herein shall be defined as a license, permit, franchise or concession not granted as a matter of right.
	 	 	 
	 	(b)	The term "person" as used herein shall be defined as any natural person doing business alone or associated with another person or entity as a partner, director, officer, principal or employee.
	 	 	 
	 	(c)	The term  "entity" as used herein shall  be defined as any firm, partnership, corporation, association, or person that receives monies, licenses, leases, or permits from or through the City or Board or otherwise transacts business with the City or Board.
	 	 	 
	 	(d)	The term "member" as used herein shall be defined as any person associated with another person or entity as a partner, director, officer, principal or employee.

 

25.7              In
addition to  and notwithstanding any  other
provisions of this agreement, the commissioner or agency head may in his or her sole discretion
terminate this agreement upon not less than
three (3) days written notice in the event the Contractor
fails to promptly report in writing to the Commissioner of Investigation of
the City of New York any solicitation of money, goods, requests for future employment
or other benefit or
thing of value, by or on behalf of any
employee of the
City or Board,
or other person, firm, corporation or entity
for any purpose which may be related to
the procurement or obtaining of this agreement
by the Contractor
or affecting the performance of this
agreement.

 

26.         Reports.
Inspection and Records

 

A.               The
Contractor shall promptly provide all reports required by the Board,
including without limitation, financial, program, statistical, analytical,
narrative and progress reports. Unless otherwise provided herein, the final payment
hereunder shall not be made until all reports have
been submitted and approved by the Board.

 

B.               The
Contractor shall, until six (6)
years after completion of its services hereunder or
six years after date of termination
of this Agreement, whichever is later, maintain
and retain complete and correct books and records relating to all aspects of the Contractor's obligations hereunder. Records must
be maintained separately, so as to identify
clearly the hours charged to this Agreement
and be distinguishable from all
other hours charged which are not related
to this Agreement.

 

C.              The
Contractor shall make its staff, and
premises, books, records,
operations, and Services provided under
this Agreement, and those of its subcontractors, available to the
Board and to any person, agency
or entity designated by the Board, at
any time, for program, audit, fiscal
audit, inspection, observation, sampling, visitation and evaluation, and shall render
all assistance and cooperation for said purposes. The Contractor agrees to attend, upon demand, any investigation
conducted by the Board to produce any records and other documents required by
the Board at that investigation, to cooperate
with the Board, and to give swam testimony pertaining to those documents or the subject
of the investigation; provided only that the
investigation, testimony, records and documents
relate to the subject of the Contractor's
relationship with the Board of Education. If a corporation, partnership
or government agency, the Contractor agrees
to require its officers, employees and partners to comply
with the foregoing.

 

    	 

    	 

    

 

D.
             In its record keeping the Contractor shall also
comply with all federal, state and local laws and regulations pertaining to such records, including, without limitation, the regulations
of the Comptroller, and shall require its subcontractors to do likewise.

 

E.
              In the event that any federal, state or local
government agency, or other public or private agency conducts an audit of any of the Contractor's operations which pertains directly
or indirectly to the goods and services provided pursuant to this Agreement, within five (5) working days after receipt by the
Contractor of notice of the commencement of such audit the Contractor shall give notice of such commencement to the Board; and
within five (5) working days after receipt by the Contractor of a copy of any resulting interim or final audit report, the Contractor
shall supply one copy thereof to the Board. (6/24/88)

 

27.
         Non-Assignment of Contract

 

The
Contractor shall give its personal attention to the faithful performance of this Agreement. The Contractor covenants that it will
not assign, transfer, convey, sublet or otherwise dispose of this Agreement or its right, title or interest therein or its power
to execute such Agreement, to any other person or corporation without the previous written consent of the Chancellor or his designee.
Request for permission to assign a contract shall be submitted in writing to the Chancellor's designee, Executive Director of
the Division of Contracts and Purchasing, 65 Court Street, Brooklyn, New York 11201. A non-refundable processing fee of $250.00
for contract amounts less than $100,000.00 and $500.00 for contract amounts $100,000.00 or greater shall be submitted with the
request. Said fee shall be by check or money order and made payable to the New York City Board of Education, Division of Contracts
and Purchasing. The Chancellor's designee shall grant or deny such requests after consultation with the appropriate Division or
Office, the decision is final and binding. If the Contractor in any way violates the terms of this provision, the Board shall
have the right to cancel and terminate this Agreement, and the Board shall thereupon be relieved from all liability hereunder.
Nothing contained herein shall be construed to affect an assignment by the Contractor for the benefit of its creditors made pursuant
to the statutes of the State of New York. No right under this Agreement, or to any monies due or to become due hereunder, shall
be asserted against the Board or the City in law or in equity by reason of a purported assignment of this Agreement, or any part
thereof, or of any monies due or to become due hereunder, unless authorized as aforesaid. (Rev.11/27/02)

 

28.         Contractor’s
Staff 

 

The
Contractor shall employ or contract for the services of only competent workmen, consultants, independent contractors and other
employees as are, or reasonably may be, necessary for the performance of the Services hereunder. The Contractor warrants that
it shall be solely responsible for its employees' work, direction, safety and compensation.         (6/84)
The Contractor agrees to replace immediately any employee, and not engage such employee in the performance of this Agreement,
if the Contractor is  notified in writing that, in the opinion  of  either the Chancellor, a  Community Superintendent,  or their
designees, such employee is incompetent or otherwise  impedes  the performance of the services hereunder.

 

29.
         Confidentiality of Records

 

All
personally identifiable student and staff information obtained by or furnished to the Contractor by the Board, and all reports
and studies containing such information prepared or assembled by the Contractor, are to be kept strictly confidential by the Contractor
and shall not be provided or disclosed to any third party without the express written permission of the Chancellor or his designee.
 The Contractor shall limit access to such material in its control to those of its employees performing services pursuant to this
Agreement strictly on a need to know basis. The Contractor shall restrict its use of the information to its performance under
this Agreement and shall return all such material to the Board upon the completion of the services herein.

 

30.
         Testimony

 

If
the project which is the subject matter of this Agreement at any time becomes involved in a proceeding, to which the Board or
the City is a party, before any court, board, tribunal, panel, arbitrator, referee or agency, the Contractor shall provide such
knowledgeable witnesses as the Board shall require, free of additional compensation of any kind. Nothing herein shall require
the Contractor to provide testimony in any proceeding in which it is a party with interests opposed to those of the Board.

 

    	 

    	 

    

 

31.
         No Personal Liability

 

Neither
the Chancellor, nor any board members, nor any officer, employee, agent or representative of the Board or of the City shall be
personally liable, based upon any theory of law or equity, to the Contractor or to any party claiming on behalf of or through
the Contractor, under this Agreement, or by reason of any individual's actions or failure to act in any way connected with this
Agreement, whether or not the action shall have been within or without an individual's scope of authority. The scope of this provision
includes personal injury to any personal interest (commercial or otherwise), physical injury (including death), property damages,
and any pecuniary damages where such injuries or damages result from or arise out of negligence. The Contractor further waives
any and all rights to make a claim or commence an action or special proceeding, in law or equity, against any of the aforementioned
individuals, and the Contractor hereby assigns its complete right, title, and interest in any such claim, action, or special proceeding
to the Board. (Rev. 12/12/02)

 

32.
         Indemnification

 

The
Contractor shall protect, indemnify and hold harmless the Board and the City from any and all claims, suits, actions, costs and
damages to which the Board and the City may be subjected by reason of injury to person or property, or wrongful death, as may
result of any act, omission, carelessness, malpractice or incompetence of the Contractor, or anyone employed or engaged by the
Contractor, in connection with the performance of this Agreement. (12/19/02)

 

33.         Conflicts
of Interest

 

A.
         Except as stated in paragraph B, no non-governmental Contractor may have
on its Board of Directors (or comparable body), employ or have under contract for services (1) any present full-time officer or
employee of the City of New York or the Board of Education or any part-time officer or employee of the Board, or (2) any present
full- time officer or employee of the City on leave from the City or the Board or any part- time officer or employee of the Board
currently on leave from the Board. Generally, the Conflicts of Interest Board may grant waivers of this provision, if an employee
or officer is not involved in the Contractor's business with the City or the Board.  Said waivers are discretionary and must be
approved prior to the commencement of services by that individual. The Board of Education's Ethics Officer must be contacted if
an officer or employee wishes to request a waiver. (Rev.12/12/02)

 

B.
         No Board of Education officer or employee may serve as an unpaid member
of a Board of Directors (or comparable body) of a non-governmental not-for-profit Contractor without the permission of the Chancellor.
To obtain this permission, the officer or employee must contact the Board of Education's Ethics Officer. All other City officers
or employees may serve as unpaid members of Boards of Directors (or comparable body) of a non-governmental not-for-profit Contractor,
if the officer or employee has no involvement with the Contractor's business with the City or the Board. (Rev.11/27/02)

 

C.           No
officer or employee of the Board of Education, or the officer or employee's spouse/ domestic partner or unemancipated child(ren)
can have an  ownership interest in the contractor, defined as an interest which exceeds five percent of the firm or an investment
of $32,000 in cash or other form of commitment, whichever is less, and any lesser interest when the officer or employee or spouse,
unemancipated child(ren), or domestic partner exercises managerial control or responsibility regarding any such firm. For Contractors
with stock that is publicly traded, compliance with this subparagraph C is the obligation of Board of Education employees and
officers. (1/16/03)

 

D.           No
former officer or employee of the Board may appear before the Board on behalf of a non- governmental Contractor within one year
of the former officer or employee's termination of service with the Board. An appearance before the Board includes all communications
with the Board. However, a former employee of the Board is not prohibited from serving on a non-governmental Contractor's Board
of Directors (or comparable body), or from employment or contracting for services with the Contractor, provided that the former
employee does not appear before the Board within one year of the termination of service with the Board.

 

    	 

    	 

    

 

E.           No
former officer or employee of the City (including the Board) may have any involvement on behalf of a non-governmental Contractor
with any aspect of a contract, including services under that contract, if that former officer or employee was involved substantially
and personally with any aspect of that contract while employed by the City. Any former City employee whose duties for the City
or the Board involved a contract shall contact the New York City Conflicts of Interest Board for clarification before having any
involvement with the contract on behalf of a non-governmental Contractor or any other private interest.

 

F.           The
Contractor warrants that, other than a bona fide employee or contractor regularly working as a sales representative for the Contractor,
no person, selling agency, or other entity has solicited or secured this Agreement, or has been employed or retained to do so,
for a commission, percentage, brokerage fee or contingent fee.

 

G.
         The Contractor shall not give, and warrants that it has not given or promised
to give, any gift to a community school board member, school leadership team member or to any officer, employee or other person
whose salary is payable in whole or part from Board or City funds, or other funds under this Agreement. The word 'gift" shall
include, without limitation, money, tangible goods, services, loans, promises or negotiable instruments. (2/13/01)

 

H.           If
the Contractor violates any provision of this paragraph, the Board may, at its option: (1) cancel and terminate this Agreement
and be relieved of all liability hereunder; (2) deduct all amounts paid by the Contractor or other value given by the Contractor
in violation of this paragraph from payments made or to be made to the Contractor under this or any other Agreement at any time;
(3) require the refund of any funds paid hereunder; (4) any combination of  the foregoing; or (5) any other action the  Board
deems necessary and appropriate as permitted by law. Any breach of the warranties or violation of the provisions of this paragraph
shall be grounds to find the Contractor or its principals as not a responsible bidder on other Board or City contracts.

 

I.
          Provider shall adhere to the Central Board of Education policy on
Conflicts of Interest, the Chancellor’s Regulations on Conflicts of Interest C-110, and the New York City Charter provisions
on Conflicts of Interest which are hereby incorporated by reference as if fully attached hereto.

 

34.         Antitrust

 

The
Contractor assigns to the Board its right, title and interest in and to any claim or cause of action arising under the antitrust
laws of New York State or the United States relating to the goods or Services purchased or procured by the Board pursuant to this
Agreement

 

35.         Mercer
and Choice of Law

 

This
written Agreement constitutes the entire agreement of the parties, and no other prior or contemporaneous agreement, oral or otherwise,
regarding the subject matter of this Agreement shall be deemed to exist or bind any of the parties hereto, or to vary any of the
terms contained herein. This Agreement shall be governed and construed in accordance with the laws of the State of New York without
regard to its conflict of law rules.

 

36.         Participation
in an International Boycott

 

A.           The
Contractor agrees that neither it nor any substantially-owned affiliated company is participating or shall participate in an international
boycott in violation of the provisions of the Export Administration Act of 1979, as amended, or the regulations of the United
States Department of Commerce promulgated thereunder.

 

B.           Upon
the final determination by the Commerce Department or any other agency of the United States that the Contractor or a substantially-owned
affiliated company thereof, participated, or is participating, in an international boycott in violation of the provisions of the
Export Administration Act of 1979, as amended, or the regulations promulgated thereunder, the Chancellor or his designee may,
at his option, render forfeit and void this contract. (1/12/89)

 

    	 

    	 

    

  

37.         No
Discrimination

 

A.           The
Contractor will strictly
comply with all applicable
Federal, State and Local laws pertaining to the subject of discrimination on any ground, as they may now read
or as they may hereafter be amended.

 

B.           The
Contractor is, and will remain,
an Equal Opportunity Employer.
In addition to the other requirements of this paragraph 37, the Contractor shall provide equal opportunity for all qualified
persons, and shall not discriminate in employment because of race,
creed, gender, color, age, sexual orientation, national origin, handicapping
condition, marital status, or religion and shall
promote the full realization of
equal opportunity. (Rev. 9/20/88)

 

C.           Pursuant
to the provisions of the New York State Labor Law, the Contractor
agrees, in its operations performed within the State of
New York:

 

(1)         That
in the hiring of employees
for the performance of
work under this contract
or any subcontract hereunder, neither the contractor, subcontractor,
nor any person acting on behalf of such contractor or subcontractor, shall by
reason of race, creed, color, sex
or national origin discriminate
against any citizen of the
State of New York who is qualified and available to perform the work to
which the employment relates;

 

(2)         That
no contractor, subcontractor, nor any person
on his behalf shall, in any
manner, discriminate against or intimidate any employee hired for the performance of work under this
contract on account
of race, creed, color, sex or national
origin;

 

(3)         That
there may be deducted from the
amount payable to the contractor by the state or municipality under this contract a penalty of five dollars for each person
for each calendar day during which such
person was discriminated against or intimidated
by the contractor or subcontractor, or anyone acting on behalf of the contractor in violation of the
provisions of the contract;

 

(4)         That
this contract may be cancelled
or terminated by the state or municipality, and
all moneys due or to become due hereunder may be forfeited, for a second or any subsequent
violation of the terms or conditions of this section of the
contract;

 

(5)         The
aforesaid provisions of this
section covering every contract
for or on behalf of the state or a municipality
for the manufacture, sale or distribution of materials, equipment or supplies shall be limited to operations performed within
the territorial limits of the State of New York; and

 

(6)          That
the Board is, for purposes of this subparagraph C., a "state or municipality." (Rev. 11/25/96)

 

38.          Equal
Employment Opportunity Requirements for Professional Contractors

 

A.           Definition
of Terms for the
Implementation of a Program of
Affirmative Action.

 

The following
terms, when used in this paragraph,
shall have the meanings given for them.

 

(1)          "Employee":
Any person employed full or part-time
in any capacity
by the Contractor or sub-contractor.

 

(2)          "Minority
Groups and Affected
Classes": Blacks, Hispanics (Non-European), Asian Americans, American Indians, females and
individuals with handicapping conditions.

 

(3)         "Program
of Affirmative Action":  A detailed, result-oriented
set of written procedures submitted by a Contractor or sub-contractor which
when implemented with conscious effort results in compliance with the Equal Opportunity
Policy herein, through full utilization and equal treatment of minorities, women and
individuals with handicapping conditions at all
levels and in all segments of the Contractor's or sub- contractor's
work force. An effective Program of Affirmative Action shall include but notnecessarily
be limited to, the following elements (Rev. 9/20/88):

 

    	 

    	 

    

 

(a)          Development
or reaffirmation of the Contractor's or sub-contractor's Equal Opportunity Policy;

 

(b)          Dissemination
of the Policy;

 

(c)          Responsibility
for implementation;

 

(d)          A
survey and analysis of employment
at all levels and in all categories and aspects
of the Contractor's or sub-contractor's
work force, which determines if and
at which levels, categories, and aspects
there is an underutilization of minority and female employees;

 

(e)          An
analysis of employment policies and
practices, including but not limited to seniority systems, recruitment, training,
promotion, insurance and job benefits and  their effects upon minorities, women and
individuals with handicapping conditions;

 

(f)           Corrective
actions taken, or to be taken, toward the elimination of any employment policy or
practice having a discriminatory effect on minority group members and
women; and

 

(g)          Description
of the Contractor's efforts to engage, as sub-contractors, bona fide minority business
enterprises and female enterprises.

 

(4)         “Goals
and Timetables”: Projected levels of achievement resulting from an analysis by the Contractor or sub-contractor of deficiencies,
and of what it can reasonably do to remedy them within a specified time period.

 

(5)         “Underutilization”:
Having fewer minorities, women and individuals with handicapping conditions in a particular job classification than would reasonably
be expected by their availability in the appropriate labor force.

 

(6)          “The
Office”: The Office of Equal Opportunity of the Board.

 

B.            Required
Program of Affirmative Action

 

(1)           The
Contractor is required to identify and eliminate overt and covert discriminatory practices
and implement the Program of Affirmative Action. Upon demand of the Office the Contractor
shall submit to the Office a detailed written Program of Affirmative Action (hereinafter
referred to as a "P.A.A."). In
the event the Contractor submits a P.A.A.
not acceptable to the
Office, the Office will require
the correction or revision of the P.A.A. to
its satisfaction.

 

(2)           In
the event the Contractor fails
to submit such an acceptable
P.A.A. within the time specified
in the demand, the Contractor may be declared in default. The Director shall
be the sole judge of the P.A.A.'s
acceptability. The P.A.A. shall:

 

(a)        
  Apply to all Board of Education professional services contracts with the Contractor;

 

(b)           Encompass
all phases of the employment process, including evaluation of job classification to
ensure job relatedness, recruitment, selection,
validity of examinations, retention, layoffs,
seniority, assignments, training, promotion, salary
and benefits;

 

(c)            Fulfill
the following requirements:

 

(i)             Include
 measurable goals, reasonable timetables and specific programs to be implemented by
the contractor to identify and eliminate deficiencies
in employment practices with respect to the underutilization of members of minority
 groups and members of affected classes;

 

    	 

    	 

    

 

(ii)          
Include a statement of the present utilization
of minority group members and women in
the Contractor's work force and a projection
of the minority utilization in the Contractor’s
work force for the life of the Contract and for
at least a one-year period succeeding its completion.
This statement and projection shall include present and projected (1) rates
of hiring and promotion of minority group members and
women in specific job categories at each
wage rate within each  level of employment and according to major organizational
unit, and  (2) percentages of minority group and women utilization
in specific job categories
at each wage rate within each
level of employment, and according to major organizational workforce;

 

(iii)         Include
all of the Contractor's facilities within New
York City as well as those facilities located elsewhere within the continental
limits of the United States;

 

(iv)        Specify
the union(s) or other employee organizations to which the Contractor's employees
belong, and shall include commitments to good faith efforts
to effect Equal Opportunity changes directly or indirectly, in programs by
such unions or organizations to recruit, train, qualify or otherwise select members,
if such changes are deemed necessary. The P.A.A. shall also include a copy of any
agreement with an employee association which affects employment policies and practices;

 

(v)         Be
submitted in such format as shall be specified
by the Director of the Office;

 

(vi)        Include
a commitment to submit to the
Director a separate P.A.A., of the form
(i) to (v)
hereof, for each subcontractor
prior to approval of the subcontractor by
the Board of Education;

 

(vii)       Include
a written evidence or  proof  which shows
that minority entrepreneurs have been solicited
and given an equal opportunity to submit
proposals and that such proposals have been
given equal consideration for
award;

 

(viii)       Contain
commitments as to goals for minority and affected classes employment and adoption of equal employment practices not less strict
than the commitments contained in the Contractor's
most recent P.A.A. which was approved
by the Office.

 

C.           Compliance
Inspection Report

 

Upon
demand of the
Office the Contractor shall, within
the specified time, submit to
the Office a Compliance Inspection
Report. The completed Compliance Inspection Report must be returned to the Office within
such time as is specified in the requisition for
information accompanying the report form.

 

D.          Conferences

 

The Contractor
shall attend such conferences as
shall be required by the Office
for the purpose of acquainting it with
the statutory and contractual requirements and
what specific measures shall constitute an acceptable P.A.A.

 

E.          Implementation
of P.A.A.

 

During the Term of the Contract, the Contractor
shall successfully implement the P.A.A. approved by the Office.

 

F.         
Default

 

If, in the opinion of the Office, the
Contractor has breached any of the requirements of paragraphs 36 or 37 hereof
it may seek to have the Contractor declared in default by the Chancellor's designee
as provided elsewhere herein. (Rev. 10/10/02)

 

For further information concerning these rules,
regulations or procedures, contractors may consult with the
Office of Equal Opportunity of
the Board.

  

39.         MacBride
Principles Provisions for Board
of Education Contractors

 

    	 

    	 

    

 

ARTICLE I. MACBRIDE PRINCIPLES

 

PART A

 

In accordance
with section 6-115.1 of the Administrative Code of
the City of New York, the Contractor
stipulates that such Contractor and any individual
or legal entity in which the Contractor holds a ten percent or greater ownership
interest and any individual or legal entity that holds a ten percent or greater ownership
interest in the
Contract either (a) have no
business operations in Northern
Ireland, or (b) shall take lawful steps
in good faith to conduct any business
operations they have in Northern Ireland in accordance with
the MacBride Principles, and shall permit
independent monitoring of their compliance with such
principles.

 

PARTB

 

For purposes
of this section, the following
terms shall have the following meanings:

 

"MacBride Principles"
shall mean those principles relating to nondiscrimination in employment and freedom
of workplace opportunity which
require employers doing business in
Northern Ireland to:

 

(1)         increase
the representation of individuals from underrepresented religious groups in the work force, including managerial, supervisory,
administrative, clerical and technical jobs;

 

(2)        
take steps to promote adequate security for the protection of employees from underrepresented religious groups both at the workplace
and while traveling to and from work;

 

(3)         ban
provocative religious or political
emblems from the workplace;

 

(4)         publicly
advertise all job openings and make special recruitment efforts to attract
applicants from underrepresented religious groups;

 

(5)         establish
layoff, recall and termination procedures which
do not in practice favor a particular religious group;

 

(6)         abolish
all job reservations, apprenticeship restrictions and different employment criteria
which discriminate on the basis
of religion;

 

(7)         develop
training programs that will prepare substantial numbers of current employees from underrepresented religious groups
for skilled jobs, including the expansion
of existing programs and the creation of new programs to train, upgrade and improve
the skills of workers from underrepresented religious groups;

 

(8)         establish
procedures to assess, identify and actively recruit employees from underrepresented religious groups with potential for
further advancement; and

 

(9)         appoint
a senior management staff member to oversee
affirmative action efforts and
develop a timetable to ensure
their full implementation.

 

    	 

    	 

    

 

ARTICLE II. ENFORCEMENT
OF ARTICLE I.

 

The Contractor agrees that the covenants and
representations in Article Iabove are material conditions to this contract. In the
event the contracting entity receives
information that the
Contractor who made the stipulation required
by this section is in violation thereof,
the contracting entity shall review such information and give the Contractor
an opportunity to respond. If the contracting entity finds
that a violation has occurred, the entity
shall have the right to declare the Contractor in default and/or terminate this contract for cause and procure the supplies,
services or work from another source in
any manner the entity deems proper. In the event
of such termination, the Contractor shall pay to the
entity, or the entity
in its sole
discretion may withhold
from any amounts otherwise payable
to the Contractor, the difference between the contract price for the uncompleted portion of this contract and
the cost to the contracting entity
of completing performance of this contract either itself or by engaging another contractor
or contractors. In the case
of a requirements contract, the
Contractor shall be liable for such difference
in price for the entire amount of supplies
required by the contracting entity for the uncompleted
term of its contract. In
the case of a construction contract,
the contracting entity shall also have the right to hold the Contractor in partial
or total default in accordance with the default
provisions of this contract, and/or may
seek debarment or suspension of the Contractor.
The rights and remedies of the entity hereunder
shall be in addition to, and not in lieu
of, any rights and remedies the entity has pursuant to this contract or by operation of law. (8/92)

 

40.         Set-Off
Rights

 

The Board
shall have all of its common law, equitable and
statutory rights of set-off. These rights
shall include, but not be limited to, the Board's option to withhold for the purposes
of set-off any moneys due and owing to the Board with regard to this Agreement, any
other agreement with the Board, including
any agreement for a term commencing prior
to the term of this Agreement, plus any amounts
due and owing to the Board
for any other
reason. The Board shall exercise its set-off rights in accordance with normal
Board practices including, in cases of set-off pursuant to an audit. the finalization
of such audit by the
Board, its representatives, or the
State or City Comptroller. (1/95)

 

41.         Non-Collusive
Bidding

 

If this Agreement was awarded by the Board
based upon the submission of bids or proposals, Contractor
warrants under penalty of perjury,
that its bid or price quotation was arrived at independently and
without collusion aimed at restricting
competition. (10/92)

 

42.         Intentionally
Left Blank (Burma Provision Deleted 9/6/01)

 

43.         Intentionally
Left Blank (Year 2000 Compliance Required Deleted
11/27/02)

 

44.         Fair
and Ethical Business Practices

 

A.  Fair
and Ethical Business Practices shall be strictly adhered to during the term of this
Agreement. During the term of this Agreement,
Contractor shall not:

 

(1)         File
with a government office or employee, a written instrument
which intentionally contains a false
statement or false information;

 

(2)         Intentionally
falsify business records;

 

(3)        Give,
or offer to give, money, gifts or anything
of value or any
other benefit to a labor official or public
servant with intent to influence that labor official or
public servant with respect to any of his
or her official acts, duties or
decisions as a labor official or public servant;

 

(4)        Give
or offer to give, money, gifts or anything
of value or any other
benefit to a labor official or public
servant for any reason;

 

(5)        Give,
or offer to give, money, gifts or other
benefit(s) to an official or employee of a private
business with intent
to induce that official or employee to engage in unethical or illegal business practices;

 

(6)        Knowingly
participate  in the criminal activities  of
any organized  crime  group, syndicate
or "family," nor shall any person
employed by or associated with any
such organized crime "family," syndicate or group participate through criminal means
in any of the business affairs of Contractor.

 

    	 

    	 

    

 

B.           Contractor
certifies throughout the term of
this Agreement, that there have been
no changes in circumstances, conditions or status of Contractor's qualification(s) as reflected in Contractor
Questionnaire or other such documents submitted to the Board. Any change in
the information provided by Contractor in its questionnaire currently on file with
the Board must be immediately reported
to the Board. In addition, Contractor shall
immediately notify the Board of any of
the following events if it becomes known that any
director, partner, officer, member or employee of Contractor, or any shareholder owning
5% of more of Contractor's membership interests:

 

(1)         
is the subject of investigation involving any
violation of criminal law or other federal, state or
local law or regulation by any governmental
agency; or

 

(2)          is
arrested, indicted or named as an unindicted co-conspirator in any indictment or other
accusatory instrument; or

 

(3)         
is convicted of any felony under state or federal law and/or any
misdemeanor involving a  business-related crime. (10/8/98)

 

45.          Indemnification
Language

 

The Contractor shall defend, indemnify and
hold the Department and the City harmless from
and against any and all claims, suits, damages, judgments, liabilities, costs, and expenses, including reasonable
attorneys' fees, to which they may
be subject because of or related
to any claim that the Copyrightable
Materials or their use constitutes an infringement by the
Contractor or a violation by the
Contractor of the copyright, patent, trademark,
or any other property or personal
right of any third party. For the purposes of this provision, "Copyrightable
Materials" shall include any reports, documents, data, photographs, software, and/or
other materials provided pursuant to
this agreement, regardless of whether the copyright
in such materials is or shall
be owned by the Department,
the Contractor, or third parties.  This
indemnification shall survive the termination or expiration of this Agreement. This indemnification provision
shall not be limited in any way by the Contractor's
obligations to obtain insurance as provided under this Agreement. Furthermore, Contractor
shall defend and settle at its sole
expense all suits or proceedings brought against Contractor arising
out of the foregoing. However, in cases
involving software, no such
settlement shall be made that prevents the
Department from continuing to use the software without
the Department's prior written consent,
which consent shall not be withheld unreasonably.
1/15/03

 

46.          Dispute
Resolution Procedure

 

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

 

B.           The
Dispute Resolution Officer
("DRO") selected by the Executive Director of
the Division of Contracts and Purchasing  shall 
be authorized to decide all questions of any nature whatsoever arising out
of, under or in connection
with, or in any way related
to or on
account of, this  Agreement (including claims in the nature of breach of contract
or fraud or misrepresentation before or subsequent to contract award)
and the DRO 's decision shall be conclusive, final
and binding on the parties. The DRO's decision may be based on such assistance as s/he
may find desirable, including advice of experts. The
effect of the DRO's decision shall not
be impaired or waived by any negotiations or settlement offers in connection therewith, or by any prior decision of others, which
prior decisions shall be deemed subject to review, or
by any termination or cancellation
of this Agreement.

 

C.           All
such disputes shall be submitted
in writing by the Contractor
to the DRO, together
with all evidence and other pertinent information with regard to such
questions, in order that a fair and
impartial decision may be made. The Board
Contract Manager may submit to the DRO all materials that s/he deems
pertinent to the dispute. The DRO
shall render a decision in writing and deliver
a copy of same to the parties
within forty-five (45)
days of the conclusion of submission of all materials
and information, or such longer time as
may be agreed to by the parties. In an unusually complex case, the DRO
may render his or her decision in a longer period of time,
not to exceed ninety (90) days or
such longer time as may be agreed to by the parties, and shall so advise the parties
at the commencement of this period. The DRO 'S decision shall
be deemed a final agency
action.

 

    	 

    	 

    

 

D.          During
such time as any dispute is being presented,
heard, and considered pursuant to this Section 46, the terms of this Agreement shall
remain in full force and effect and the Contractor shall
continue to provide
any services in accordance with
this Agreement. Failure of
the Contractor to continue to provide
services shall constitute a material breach of contract.

 

E.           If
the Contractor protests the determination of the DRO, the Contractor may commence a
lawsuit in Supreme Court, County
of New York under Article 78
of the New York Civil Practice Law and
Rules. Such review of the Court
shall be limited to the question of whether
or not the DRO 's decision was made in violation
of lawful procedure, was affected
by an error of law, or was arbitrary and capricious or an abuse of
discretion. No evidence or information shall be introduced or relied upon in
such an action or proceeding that has not been presented
to the DRO prior
to the making of his or her
decision.Exhibit 10.1

 

 

INCREMENTAL ASSUMPTION AGREEMENT

 

 

dated as of February 10, 2012,

 

 

made by

 

 

CREDIT SUISSE AG, Cayman Islands Branch,

as Assuming Lender

 

 

relating to the

 

SENIOR SECURED REVOLVING CREDIT AGREEMENT

dated as of August 4, 2011,

 

among

 

 

MEDLEY CAPITAL CORPORATION,

as Borrower,

 

The Several Lenders and Agents

from Time to Time Parties Thereto,

 

 

and

 

 

ING CAPITAL LLC,

as Administrative Agent and Collateral Agent

 

 

 

 

 

    	 

    	 

    
  

INCREMENTAL ASSUMPTION AGREEMENT, dated as of February
10, 2012 (this “Assumption Agreement”), by and among MEDLEY CAPITAL CORPORATION (the “Borrower”),
MOF I BDC LLC (the “Subsidiary Guarantor”), ING CAPITAL LLC, in its capacity as Administrative Agent (the “Administrative
Agent”), and CREDIT SUISSE AG, Cayman Islands Branch, as assuming lender (the “Assuming Lender”),
relating to the SENIOR SECURED REVOLVING CREDIT AGREEMENT, dated as of August 4, 2011 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among the Borrower, the Administrative Agent and the several banks
and other financial institutions or entities from time to time party to the Credit Agreement.

 

A.The Borrower has
requested that the Assuming Lender provide an additional Commitment in an aggregate amount equal to $15,000,000 (the “Incremental
Commitment”) pursuant to Section 2.06(f) of the Credit Agreement.

 

B.The Assuming Lender
is willing to make such an Incremental Commitment to the Borrower on the terms and subject to the conditions set forth herein and
in the Credit Agreement.

 

Accordingly, in consideration
of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the parties hereto agree as follows:

 

SECTION 1. Defined
Terms; Interpretation; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to such terms
in the Credit Agreement. The rules of construction set forth in Section 1.03 of the Credit Agreement shall apply equally to
this Assumption Agreement. This Assumption Agreement shall be a “Loan Document” for all purposes of the Credit Agreement
and the other Loan Documents.

 

SECTION 2. Incremental
Commitment. a) Pursuant to Section 2.06(f) of the Credit Agreement and subject to the terms and conditions hereof, the Assuming
Lender hereby agrees to make the Incremental Commitment to the Borrower effective on and as of the Effective Date (as defined below).
The Incremental Commitment shall constitute an additional “Commitment” for all purposes of the Credit Agreement and
the other Loan Documents.

 

(b)The terms of
the Incremental Commitment shall be the same as the other Commitments made under the Credit Agreement.

 

(c)On
the Effective Date, in connection with the adjustments to any outstanding Loans and participation
interests contemplated by Section 2.06(f)(iv) of the Credit Agreement, the Assuming Lender shall make a payment to the Administrative
Agent, for account of the other Lenders, in an amount calculated by the Administrative Agent in accordance with such section, so
that after giving effect to such payment and to the distribution thereof to the other Lenders in accordance with such section,
the Loans are held ratably by the Lenders in accordance with the respective Commitments of such Lenders (after giving effect to
the Incremental Commitment and any other Commitment Increases, if any, occurring on the date hereof).

    	 

    	 

    
 

 

(d)As of the Effective
Date, the Assuming Lender shall become a Lender under the Credit Agreement and shall have all rights of a Lender under the Credit
Agreement and any other documents or instruments delivered pursuant thereto.

 

SECTION 3. Conditions
Precedent to Incremental Commitment. This Assumption Agreement, and the obligations of the Assuming Lender to make the Incremental
Commitment, shall become effective on and as of the Business Day (the “Effective Date”) occurring on or before
February 10, 2012 on which the following conditions precedent have been satisfied:

 

(a)the Administrative
Agent shall have received counterparts of this Assumption Agreement that, when taken together, bear the signatures of the Borrower,
the Subsidiary Guarantor, the Administrative Agent and the Assuming Lender;

 

(b)on the date
hereof, each of the conditions set forth or referred to in Section 2.06(f)(i) of the Credit Agreement shall be satisfied, and pursuant
to Section 2.06(f)(ii)(x) of the Credit Agreement, the Administrative Agent shall have received a certificate of a duly authorized
officer of the Borrower dated the date hereof certifying as to the foregoing;

 

(c)the Administrative
Agent shall have received for the account of the Lenders the amounts, if any, payable under Section 2.13 of the Credit Agreement
as a result of the adjustments of Borrowings pursuant to Section 2(c) of this Assumption Agreement;

 

(d)the Assuming
Lender shall have received an up-front fee in the amount of $112,500, due to the Assuming Lender on the date hereof; and

 

(e)the Administrative
Agent shall have received all other documented fees and expenses related to this Assumption Agreement owing on the date hereof.

 

SECTION 4. Representations
and Warranties of the Borrower. To induce the other parties hereto to enter into this Assumption Agreement, the Borrower represents
and warrants to the Administrative Agent and the Assuming Lender that, as of the date hereof:

 

(a)This Assumption
Agreement has been duly authorized, executed and delivered by the Borrower and the Subsidiary Guarantor, and constitutes a legal,
valid and binding obligation of the Borrower and the Subsidiary Guarantor in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

    	 

    	 

    
 

 

(b)Each of the
representations and warranties made by the Borrower and the Subsidiary Guarantor in or pursuant to the Loan Documents are true
and correct in all material respects as if made on such date (except to the extent they relate specifically to an earlier date,
in which case they are true and correct in all material respects as of such earlier date, and unless a representation or warranty
is already qualified by materiality or by Material Adverse Effect, in which case it is true and correct in all respects).

 

(c)No Default
or Event of Default has occurred and is continuing on the date hereof or shall result from the Incremental Commitment.

 

SECTION 5. Representations,
Warranties and Covenants of the Assuming Lender. The Assuming Lender (a) represents and warrants that (i) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Incremental
Commitment, shall have the obligations of a Lender thereunder, and (ii) it has received a copy of the Credit Agreement, together
with copies of the consolidated statement of assets and liabilities and the related consolidated statements of operations, changes
in net assets and cash flows and related schedule of investments of the Borrower and its Subsidiaries as of and for the fiscal
year ended September 30, 2011, delivered pursuant to Section 5.01(a) thereof, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into this Assumption Agreement and to make the Incremental
Commitment on the basis of which it has made such analysis and decision independently and without reliance on the Administrative
Agent or any other Lender; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent or any
other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all
of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

SECTION 6. Consent
and Reaffirmation. (a)  The Subsidiary Guarantor hereby consents to this Assumption Agreement and the transactions contemplated
hereby, (b) the Borrower and the Subsidiary Guarantor agree that, notwithstanding the effectiveness of this Assumption Agreement,
the Guarantee and Security Agreement and each of the other Security Documents continue to be in full force and effect, (c) the
Borrower and the Subsidiary Guarantor acknowledge that the terms “Credit Agreement Obligations,” “Guaranteed
Obligations” and “Secured Obligations” (each as defined in the Guarantee and Security Agreement) include any
and all Loans made now or in the future by the Assuming Lender in respect of the Incremental Commitment and all interest and other
amounts owing in respect thereof under the Loan Documents (including all interest and expenses accrued or incurred subsequent to
the commencement of any bankruptcy or insolvency proceeding with respect to the Borrower, whether or not such interest or expenses
are allowed as a claim in such proceeding), and (d) the Subsidiary Guarantor confirms its guarantee of the Guaranteed Obligations
and the Borrower and the Subsidiary Guarantor confirm their grant of a security interest in their assets as Collateral for the
Secured Obligations, all as provided in the Loan Documents as originally executed (and amended prior to the date hereof and supplemented
hereby).

    	 

    	 

    
 

 

SECTION 7. Notices.
All notices hereunder shall be given in accordance with the provisions of Section 9.01 of the Credit Agreement.

 

SECTION 8. Expenses.
The Borrower agrees to pay all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent in connection
with this Assumption Agreement in accordance with the Credit Agreement, including the reasonable and documented fees, charges and
disbursements of one outside counsel for the Administrative Agent.

 

SECTION 9. Counterparts.
This Assumption Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but
one and the same contract. Delivery of an executed counterpart of a signature page of this Assumption Agreement by facsimile or
electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

SECTION 10. Applicable
Law; Jurisdiction; Consent to Service of Process; Other. THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK. THE PROVISIONS OF SECTION 9.09 OF THE CREDIT AGREEMENT (AND ALL OTHER APPLICABLE PROVISIONS OF ARTICLE IX OF THE CREDIT
AGREEMENT) ARE HEREBY INCORPORATED BY REFERENCE.

 

SECTION 11. Headings.
The headings of this Assumption Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

 

SECTION 12. No
Third Party Beneficiaries. This Assumption Agreement is intended to be solely for the benefit of the parties hereto and is
not intended to confer any benefits upon, or create any rights in favor of, any other person or entity. No person or entity other
than the parties hereto shall have any rights under or be entitled to rely upon this Assumption Agreement.

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Assumption Agreement to be duly executed and delivered by their proper and duly authorized
representatives as of the day and year first above written.

 

	 	MEDLEY CAPITAL CORPORATION,
	 	as Borrower
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Richard T. Allorto, Jr.	 
	 	Name: Richard T. Allorto, Jr.
	 	Title: Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	MOF I BDC LLC, as Subsidiary Guarantor
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Richard T. Allorto, Jr.	 
	 	Name: Richard T. Allorto, Jr.
	 	Title: Chief Financial Officer

 

 

 

 

 

 

 

[Signature Page to Incremental Assumption Agreement] 

 

    	 

    	 

    

 

 

	 	ING CAPITAL LLC, as Administrative Agent
	 	 
	 	 
	 	By:	/s/ Patrick Frisch	 
	 	 	Name:	Patrick Frisch	 
	 	 	Title:	Managing Director	 

 

 

 

 

 

 

 

 

[Signature Page to Incremental Assumption Agreement]

    	 

    	 

    

 

	 	CREDIT SUISSE AG, Cayman Islands Branch,
	 	as Assuming Lender
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Doreen Barr	 
	 	Name: Doreen Barr
	 	Title: Director
	 	 	 	 
	 	By:	/s/ Michael Spaight	 
	 	Name: Michael Spaight
	 	Title: Associate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Incremental Assumption Agreement]

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