Document:

Unassociated Document

     

    THE CITY
OF NEW YORK

    DEPARTMENT
OF ENVIRONMENTAL PROTECTION

    CONTRACT
NO.  PO-98B

    Registration
No. CTC 826 20101417884

     

    

     

    For the
Services of:

    ThermoEnergy
Corporation

    124 West
Capitol Street, Suite 880

    Little
Rock, Arkansas 72201

     

    

     

    Ammonia
Removal Process System

    

     

    City of
New York

     

    Department
of Environmental Protection

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE OF
CONTENTS

    
    

     

    
      
        
          
            	
                    ARTICLE                                DESCRIPTION

                  	
                    PAGE

                  
	 
      	 
      
	
                    WHEREAS
      CLAUSES

                  	
                    1

                  
	 
      	 
      
	
                    ARTICLE
      I: SPECIFIC PROVISIONS

                  	
                    2

                  
	 
      	 
      
	
                    ARTICLE
      II: SCOPE OF SERVICES

                  	
                    5

                  
	 
      	 
      
	
                    ARTICLE
      III: INFORMATION AND WORK TO BE FURNISHED BY THE DEPARTMENT OF
      ENVIRONMENTAL PROTECTION

                  	
                    10

                  
	 
      	 
      
	
                    ARTICLE
      IV: PAYMENT FOR SERVICES

                  	
                    10

                  
	 
      	 
      
	
                    ARTICLE
      V: EXECUTION BY COMMISSIONER AND COMPANY

                  	
                    13

                  

          

        

      

    

     

    ATTACHMENTS

     

    
      	
              Appendix
      A:

            	
              General
      Provisions

            
	 	 
	Attachment
      No. 1	Specific
      Requirements
	 	 
	Attachment
      No. 2	Proposed
      Subcontractors
	 	 
	Attachment
      No. 3	Project
      Schedule
	 	 
	Attachment
      No. 4	Payment
      Schedule
	 	 
	Attachment
      No. 5	Equipment
      List
	 	 
	Attachment
      No. 6	Design
      Deliverables

    

     

    
      
        
        

      

      
        - i
-

        
          

        

      

      
        
        

      

    

     

    THIS AGREEMENT, made and
entered into this 11th day of May, 2010 by and between the City of New York,
hereinafter called “the City” acting by and through the Commissioner of the
Department of Environmental Protection of the City of New York, 59-17 Junction
Blvd., Flushing, NY 11373, hereinafter called “the Commissioner,” and
ThermoEnergy Corporation, 124 West Capitol Street, Suite 880, Little Rock,
Arkansas 72201, hereinafter called “the Company,”

     

    WITNESSETH

     

    WHEREAS, the City has
determined that it is necessary to decrease the amount of ammonia in the sludge
dewatering centrate generated at its waste water pollution control plants,
including the 26th Ward
waste water pollution control plant (26th Ward
WPCP);

     

    WHEREAS, the Department of
Environmental Protection of the City of New York (NYCDEP) has reviewed different
potential technologies and methods of decreasing the amount of ammonia in the
sludge dewatering centrate generated at its waste water pollution control
plants;

     

    WHEREAS, as part of its
analysis, the NYCDEP reviewed the Company’s proprietary ammonia recovery process
system;

     

    WHEREAS, based on the NYCDEP’s
analysis, the City desires to implement a full scale system (System) utilizing
the Company’s ammonia recovery process system (ARP®) at the 26th Ward
WPCP;

     

    WHEREAS, the NYCDEP has
determined that it is necessary to rehabilitate the Cake Storage Building and
miscellaneous systems at the 26th Ward
WPCP in order to accommodate the installation of the Company’s
ARP®;

     

    WHEREAS, the City desires to
enter into this Agreement, on a sole source basis, with the Company to cause the
Company to (a) provide engineering and design services with respect to the
rehabilitation of the Cake Storage Building, process equipment, and
miscellaneous systems at the 26th Ward
WPCP, (b) supply and install ARP®  equipment at the 26th Ward
WPCP, and (c) operate and maintain the System utilizing the Company’s
ARP®  at the 26th Ward
WPCP (the “Services”);

     

    WHEREAS, the Company desires
to provide the Services to the City;

     

    WHEREAS, the City desires to
perform all construction activities related to the System either directly or
through the use of other contractors; and

     

    WHEREAS, this Agreement will
be funded by Capital Project WP-285.

     

    NOW THEREFORE, in
consideration of the premises hereof, the mutual promises, covenants and
agreements contained herein, and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties agree as
follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

        ARTICLE
I:  SPECIFIC PROVISIONS

      

    

     

    
      	
               
      

            	
              A.

            	
              Except
      for titles, subtitles, headings, running headlines, tables of content, and
      indices (all of which are printed herein merely for convenience), the
      following shall be deemed to be part of this
  Agreement:

            

    

     

    
      	
               
      

            	
              1.

            	
              Agreement,
      including Appendix A

            

    

     

    
      	
               
      

            	
              2.

            	
              Attachment
      No. 1 – Specific Requirements

            

    

     

    
      	
               
      

            	
              3.

            	
              Attachment
      No. 2 – Proposed Subcontractors

            

    

     

    
      	
               
      

            	
              4.

            	
              Attachment
      No. 3 – Project Schedule

            

    

     

    
      	
               
      

            	
              5.

            	
              Attachment
      No. 4 – Payment Schedule

            

    

     

    
      	
               
      

            	
              6.

            	
              Attachment
      No. 5 – Equipment List

            

    

     

    
      	
               
      

            	
              7.

            	
              Attachment
      No. 6 – Design Deliverables

            

    

     

    
      	
               
      

            	
              8.

            	
              All
      conditions required by law to be inserted in this Agreement, whether
      actually inserted or not.

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      words “the Agreement” or “this Agreement,” where used herein, are
      understood to mean each of the various parts of this Agreement referred to
      in A above, both as a whole and severally.  In the event of any
      conflict between the main body of this Agreement and Appendix A, the main
      body of this Agreement shall
govern.

            

    

     

    
      	
               
      

            	
              C.

            	
              Amendments
      to this Agreement, if any, will be made a part of this Agreement upon
      signing by both the City and the
Company.

            

    

     

    
      	
               
      

            	
              D.

            	
              Definitions
      – The following words and expressions, or pronouns used in their stead,
      shall, wherever they appear in this Agreement, be construed as follows,
      unless a different meaning is clear from the
  context:

            

    

     

    
      	
               
      

            	
              1.

            	
              “The
      Mayor,” where used herein, is understood to mean the Mayor of the City of
      New York, his successors, or duly authorized
    representatives.

            

    

     

    
      	
               
      

            	
              2.

            	
              “The
      Director of Management and Budget,” where used herein, is understood to
      mean the Director of the Office of Management and Budget of the City of
      New York, his successors, or duly authorized representatives
      (OMB).

            

    

     

    
      	
               
      

            	
              3.

            	
              “The
      Commissioner,” or “Administrator” where used herein, is understood to mean
      the Commissioner of the NYCDEP, his successors, or duly authorized
      representative.

            

    

     

    
      
        
        

      

      
        - 2
-

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
               
      

            	
              4.

            	
              “The
      City,” where used herein, is understood to mean the City of New
      York.

            

    

     

    
      	
               
      

            	
              5.

            	
              “The
      Comptroller,” where used herein, is understood to mean the Comptroller of
      the City of New York, his successors, or duly authorized
      representative.

            

    

     

    
      	
               
      

            	
              6.

            	
              “The
      NYCDEP,” or “DEP” or “Department” where used herein, is understood to mean
      the Department of Environmental Protection of the City of New
      York.

            

    

     

    
      	
               
      

            	
              7.

            	
              “The
      Bureau,” where used herein, is understood to mean the Bureau of Wastewater
      Treatment of the NYCDEP.

            

    

     

    
      	
               
      

            	
              8.

            	
              “Owner,”
      where used herein, is understood to mean the City of New York, acting
      though the Commissioner.

            

    

     

    
      	
               
      

            	
              9.

            	
              “The
      Engineering Audit Officer” (EAO), where used herein, is understood to mean
      the Engineering Audit Officer of the
NYCDEP.

            

    

     

    
      	
               
      

            	
              10.

            	
              “The
      Project,” where used herein, is understood to mean the design,
      engineering, construction, startup and operation of a System utilizing the
      Company’s ARP®  at the 26th
      Ward WPCP.  As described herein, certain elements of work with
      respect to the Project shall be performed by the Company and certain
      elements of the work with respect to the Project will be performed by the
      City.

            

    

     

    
      	
               
      

            	
              11.

            	
              “The
      Services,” where used herein, are understood to mean
      the  services to be provided by the Company pursuant to this
      Agreement, which services constitute (a) the provision of engineering and
      design services, including plans and specifications for work to be bid
      separately by the NYCDEP with respect to the rehabilitation of the Cake
      Storage Building, process equipment, and miscellaneous systems at the
      26th
      Ward WPCP, (b) the supply and installation of ARP®  equipment at
      the 26th
      Ward WPCP, and (c) the operation and maintenance of the System utilizing
      the Company’s ARP®  at the 26th
      Ward WPCP, all as further described in Attachment No. 1, the Specific
      Requirements.

            

    

     

    
      	
               
      

            	
              12.

            	
              “Company,”
      or “Consultant” where used herein, is understood to mean ThermoEnergy
      Corporation, 124 West Capitol Street, Suite 880, Little Rock, Arkansas
      72201.

            

    

     

    
      	
               
      

            	
              13.

            	
              “The
      Principals” or “the Principals of the firm,” are understood to mean those
      individuals in a firm who possess legal responsibility for its
      management.  The may be owners, corporate officers, associates,
      partners, etc.  With respect to a corporation, a Principal is
      further defined as a person who owns ten (10) percent or more of the
      voting stock.

            

    

     

    
      
        
        

      

      
        - 3
-

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              14.

            	
              “The
      Engineer,” where used herein, is understood to mean the project manager
      who is assigned to this project by the City of New
  York.

            

    

     

    
      	
               
      

            	
              15.

            	
              “The
      26th
      Ward WPCP,” where used herein, is understood to mean the waste water
      pollution control plant owned by the City and located at 12266 Flatlands
      Avenue, Brooklyn, New York, 11297.

            

    

     

    
      	
               
      

            	
              16.

            	
              “The
      ARP®,” where used herein, is understood to mean the Company’s proprietary
      ammonia recovery process system.

            

    

     

    
      	
               
      

            	
              17.

            	
              “The
      System,” where used herein, is understood to mean the full scale system to
      be located within the rehabilitated Cake Storage Building at the 26th
      Ward WPCP and which will utilize the Company’s
  ARP®.

            

    

     

    
      	
               
      

            	
              18.

            	
              “The
      Cake Storage Building,” where used herein, is understood to mean the cake
      storage building located at the 26th
      Ward WPCP.

            

    

     

    
      	
               
      

            	
              19.

            	
              “PROCUREMENT
      POLICY BOARD” (PPB) - The Procurement Policy Board is a permanent agency
      of the City of New York whose functions are to establish comprehensive and
      consistent procurement policies and rules which shall have broad
      application throughout the City.

            

    

     

    
      	
               
      

            	
              20.

            	
              “CITY
      CHIEF PROCUREMENT OFFICER” (CCPO) - Position delegated by authority of the
      Mayor to coordinate and oversee the procurement activity of mayoral agency
      staff, including the ACCO and any offices which have oversight
      responsibility for the procurement of
  construction.

            

    

     

    
      	
               
      

            	
              21.

            	
              “AGENCY
      CHIEF CONTRACTING OFFICER” (ACCO) - Position delegated by authority of the
      agency head to organize and supervise the procurement activity of
      subordinate agency staff in conjunction with the
  CCPO.

            

    

     

    
      	
               
      

            	
              22.

            	
              “Law”
      or “Laws” shall include but not be limited to the New York City Charter,
      the New York City Administrative Code, a local law of the City of New
      York, and any ordinance, rule or regulation having the force of
      law.

            

    

     

    
      	
               
      

            	
              E.

            	
              The
      City hereby retains the Company to perform the Services on the terms and
      conditions specified herein, and the Company hereby agrees to perform such
      services.  The Company shall ascertain the standard practices of
      the City, and all Services under this Agreement shall be performed in
      accordance with these standard practices and the provisions of this
      Agreement and the Specific Requirements set forth in Attachment No.
      1.

            

    

     

    
      	
               
      

            	
              F.

            	
              This
      Agreement contains all the terms and conditions agreed upon by the parties
      hereto, and no other agreement, oral or otherwise, regarding the subject
      matter of this Agreement shall be deemed to exist or to bind any of the
      parties hereto, or to vary any of the terms contained
    herein.

            

    

     

    
      
        
        

      

      
        - 4
-

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              G.

            	
              This
      Agreement will not be binding or effective unless and until approved by
      the Commissioner and, if necessary, other officers, Agencies, or Boards
      charged by the law with approving agreements of this nature, and executed
      by the parties hereto, and registered by the
  Comptroller.

            

    

     

    
      	
               
      

            	
              H.

            	
              The
      Company shall cooperate with the City in developing and
      implementing  public education activities with respect to the
      26th
      Ward WPCP (including the System), subject to reasonable confidentiality
      restrictions intended to protect the Company’s proprietary interests in
      the ARP®  technology.

            

    

     

    ARTICLE
II:  SCOPE OF SERVICES

     

    
      	
               
      

            	
              A.

            	
              Definition
      of Scope of Services

            

    

     

    The
Services, more particularly set forth in Attachment No. 1 (Specific
Requirements) shall involve three separate Phases.  During Phase 1,
the Company shall provide engineering and design services with respect to the
rehabilitation of the Cake Storage Building, process equipment, and
miscellaneous systems at the 26th Ward WPCP to accommodate the ARP® system at
the 26th Ward WPCP.  During Phase 2, the Company shall supply and
install ARP® equipment at the 26th Ward
WPCP. In addition, the Company shall start-up the System during Phase
2.  The City and the Company acknowledge that the time periods for
performance of Phase 1 and Phase 2 Services will, to a certain extent,
overlap.  This is due, in part, to the need to order certain pieces of
equipment well in advance of any agreed-upon delivery date.  During
Phase 3, the Company shall operate and maintain the System for a twelve month
period.  All Services are more specifically described in Attachment
No. 1, the Specific Requirements.  If there is any conflict between
the provisions of this Agreement and the provisions of the Specific
Requirements, the Specific Requirements shall to that extent
prevail.

     

    
      	
               
      

            	
              B.

            	
              Commencement
      of Services

            

    

     

    The
Commissioner shall direct the Company by written notice to proceed with the
Services or portion thereof and the Company shall thereupon take charge of the
Services described in the Specific Requirements in accordance with the schedule
agreed upon herein.

     

    
      	
               
      

            	
              C.

            	
              Period
      of Performance

            

    

     

    The Phase
1 design and engineering portion of the Services and the Phase 2 equipment
supply and installation portion of the Services shall be performed in accordance
with a schedule mutually agreed upon by the City and the Company.  The
schedule for Phase 1 and Phase 2 Services shall be fully coordinated so as not
to interfere or unreasonably delay the City’s construction work with respect to
the demolition and rehabilitation of the Cake Storage Building and
miscellaneous systems at the 26th Ward
WPCP.  After installation of all equipment has been completed, the
Company shall start-up the System in accordance with the Phase 2 Scope of
Services.  The City and the Company acknowledge that the time periods
for performance of the Services in Phase 1 and the Services in Phase 2 will, to
a certain extent, overlap.  After the successful completion by each
Party of Phase 1 and Phase 2, the Phase 3 operations portion of the Services
shall commence.  During the operational Phase, the Company shall
operate and maintain the System and shall train NYCDEP staff in the operations
and maintenance of the System.  The startup period will be thirty (30)
days.  After the startup period, the Company shall operate and
maintain the System for twelve (12) months.

     

    
      
        
        

      

      
        - 5
-

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

      

       

    

    
      	
               
      

            	
              D.

            	
              Meetings
      with Outside Agencies

            

    

     

    The
Company shall arrange and attend those meetings or conferences with federal,
state and municipal departments or any other agencies and Citizen Action
Committees necessary for the completion of the Services in conformance with the
Specific Requirements.  Where attendance by City personnel is
required, the Company shall provide reasonable advance notice and coordinate the
meetings with the schedule of the City personnel.  The Company shall
provide sufficient copies of materials, including prints, reports, etc.,
necessary for such meetings and shall prepare and submit to the Commissioner
minutes of the meetings within thirty (30) working days thereof as directed by
the Commissioner.

     

    
      	
               
      

            	
              E.

            	
              Progress
      Reports and Meetings

            

    

     

    Each
month, commencing thirty days after the date fixed in the notice to proceed for
commencement of work, the Company shall submit a progress report, giving the
status of the performance of the design and engineering portion of the Services
and the equipment supply portion of the Services.  If progress is
delayed for any reason, the Company shall state the reason for such delay in
this report.  In addition, the Company shall provide monthly reports
during the operation period.  Throughout the term of this Agreement,
the Company shall conduct monthly meetings with NYCDEP regarding the status of
all activities related to the Project.

     

    
      	
               
      

            	
              F.

            	
              Schedule

            

    

     

    Attached
hereto as Attachment No. 3 is a schedule estimating the timing of the Phases of
the Project.  Within four (4) weeks after the start of the design and
engineering portion of the Services, the Company shall prepare and submit to the
Bureau a more detailed schedule or its approved equivalent for the work to be
performed.  This schedule is to be in sufficient detail to outline all
work to be accomplished under each Phase or task of the design and engineering
Services, the equipment supply Services and the operational
Services.  The Bureau shall review and comment on the
schedule.  The City and the Company shall cooperate in order to update
the schedule each month indicating the work completed and the work
remaining.

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              G.

            	
              Sequence
      of Work

            

    

     

    The
Services to be furnished by the Company shall be rendered in a logical sequence
that is conducive to the timely fulfillment of the scope of Services of this
Agreement; provided that the sequencing shall be subject to approval by the
City.

     

    
      	
               
      

            	
              H.

            	
              Personnel
      of the Company

            

    

     

    The
Company shall engage at its sole expense all personnel required for the proper
performance of the Services.  The Company shall be responsible for the
performance of its personnel, including the maintenance of schedules,
correlation of their work, and resolution of all differences between
them.  The Company shall pay its personnel monies commensurate with
the services they render, and in compliance with the terms of this
Agreement.  It is understood that all such personnel shall be engaged
by the Company, not the City, and that Company alone is responsible for their
work.

     

    
      	
               
      

            	
              I.

            	
              Subcontractors
      of the Company

            

    

     

    The
Company may retain such subcontractors that may, in the Company’s judgment, be
required to fully perform any aspect of the Services hereunder.  The
Company shall submit in writing the names of the proposed subcontractors to the
Commissioner for approval by NYCDEP before their employment; provided that the
subcontractors listed on Attachment No. 2 are hereby approved by the
Commissioner.  Companies that enter into purchase orders or agreements
to provide equipment, materials or supplies with respect to the System shall not
be subject to prior approval of NYCDEP; provided that all such equipment,
materials and supplies furnished shall be in accordance with this
Agreement.  The Company shall pay subcontractors retained on any part
of the Project, monies commensurate with the services they render, and in
compliance with the terms of this Agreement.  The Company shall
stipulate in each and every subcontract that (a) all services performed and
materials furnished shall strictly comply with the requirements of the
Agreement, (b) nothing contained in such subcontract shall impair the rights of
the NYCDEP, (c) nothing contained in such subcontract shall create any
contractual relation between the subcontractor or supplier and the NYCDEP, and
(d) the subcontractor specifically agrees to be bound by the confidentiality
provision set forth in this Agreement between the NYCDEP and the
Company.  The Company shall furnish the Commissioner two copies of all
subcontracts with such subcontractors.

     

    It is
understood that any and all such subcontractors shall be retained by the
Company, not by the City, and that the Company alone is responsible for their
work and the Company shall not in any way be relieved of any responsibility
under this Agreement by any subcontract.

     

    
      
        
        

      

      
        - 7
-

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

      

       

    

    The
parties acknowledge that the City may retain contractors to perform all or a
portion of the City’s obligations with respect to the Project and, in such
event, the City alone shall be responsible for their work.

     

    
      	
               
      

            	
              J.

            	
              Qualifications
      of the Company, Subcontractors and
Employees

            

    

     

    The
Company specifically agrees that: (a) its subcontractors, agents or employees
shall possess the experience, knowledge and character necessary to qualify them
individually for the particular duties they perform; (b) it will comply with the
provisions of all State, Federal and local statutes, ordinances and regulations
that are applicable to the performance of this Agreement; and (c) it will secure
all licenses and permits, if any, that are necessary for the performance of the
Services.

     

    
      	
               
      

            	
              K.

            	
              Removal
      of Personnel

            

    

     

    All
personnel assigned to perform the Services by the Company shall be required to
cooperate fully with personnel assigned to the Project by the Commissioner and
in the event the Company’s personnel fail to so cooperate the Company shall
relieve them of their duties on the Project when directed by the Commissioner or
his representative in writing.

     

    
      	
               
      

            	
              L.

            	
              Project
      Manager

            

    

     

    The
Company shall designate in writing one person, known as the Project Manager who,
on the Company’s behalf, shall be responsible for the management and
coordination of all the Services to be rendered by the Company.  Such
designee shall be subject to the approval of the Commissioner.  Such
approval shall not be unreasonably withheld.  Company shall provide an
organization chart with all key personnel of this Project and their contact
numbers.  Company shall designate a contact person and a backup person
which the City will be able to contact on a 24-hour basis in case of any
emergency situation.

     

    
      	
               
      

            	
              M.

            	
              License
      of Design Deliverables and Proprietary
  Technology

            

    

     

    All
design and engineering deliverables required to be prepared and furnished by the
Company in order to perform the Services, and the Company’s proprietary
technology related to its ARP®, shall hereby be licensed to the City on a
nonexclusive, irrevocable, royalty free basis for use solely in the construction
and operation of the System built in accordance with Company’s design and
located at the 26th Ward
WPCP.  The Company shall deliver to the Commissioner all such design
deliverables, which thereafter the City may utilize in whole or in part solely
for the above stated purposes without payment of any additional compensation to
the Company.  Subject to the license provided herein, the Company
shall retain all rights, title and interest in the design deliverables and all
proprietary property related to the ARP®, including improvements with respect to
the Company’s technology that are developed at the 26th Ward
WPCP by the Company.  The provisions of this clause shall survive any
termination of this Agreement.

     

    
      
        
        

      

      
        - 8
-

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              N.

            	
              Confidentiality

            

    

     

    The
Company shall hold all information furnished by the NYCDEP as
confidential.  All of the reports, information or data, furnished to
or prepared, assembled or used by the Company under this Agreement are to be
held confidential, and prior to publication, the Company agrees that the same
shall not be made available to any individual or organization without the prior
written approval of the NYCDEP.  At any time prior to the completion
of this Agreement, the Company shall not make any statement to the press or
release any information or material to the public for publication through any
media or communication, having a bearing on or referring to this Agreement or
any work performed hereunder without prior written approval of the City, except
that which Company is required to disclose pursuant to reporting requirements of
the Securities and Exchange Commission Act of 1934, as
amended.  Notwithstanding the above, the Company shall be permitted to
allow third parties, including potential investors or users of the ARP®
technology, to visit and tour the 26th Ward
WPCP and to review operating data relating to the 26th Ward
WPCP, including the System, at the prior approval of the City, which approval
may be withheld at the City’s sole discretion.  The Company shall
cause all Subcontractors to comply with the provisions of this
section.

     

    The City
acknowledges that the 26th Ward
WPCP will incorporate proprietary technology owned by the Company.  In
the course of performing its responsibilities under this Agreement, the Company
may provide the City with confidential information and the City agrees that all
written or electronic information marked confidential by the Company shall be
kept confidential and shall not be released by the City without prior written
approval from the Company, unless the City is ordered to do so by a court of
competent jurisdiction or pursuant to law.  The City shall make no
copies of any confidential documents provided by the Company under this
Agreement other than for the use by the City’s employees who need such
information to perform their normal duties with respect to the 26th Ward
WPCP.

     

    The
confidentiality provisions of this clause shall only be applicable during the
period of this Agreement.

     

    
      	
               
      

            	
              O.

            	
              Services
      of the Company

            

    

     

    The
Services to be performed by the Company shall at all times be subject to the
inspection of the Commissioner.  Acceptance by the Commissioner of any
work or document hereunder shall not relieve the Company of sole responsibility
for completing the Services as expressly set forth in this Agreement, in
accordance with all applicable laws and regulations.

     

    
      
        
        

      

      
        - 9
-

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
               
      

            	
              P.

            	
              No
      Consequential Damages; Limitation of
Liability

            

    

     

    Either
party to this Agreement shall have the right to pursue any remedy at law or in
equity as a result of a material breach of this Agreement by the other
party.  However, any remedy for damages shall be limited to the
recovery of actual damages.  Neither party shall be liable to the
other party hereunder for special, indirect, incidental, consequential or
punitive damages resulting from or arising out of this Agreement.  The
Company’s total responsibility to the City for any claims, damages, losses or
liabilities arising out of or related to its performance of any particular Phase
of work under this Agreement shall not exceed the price payable hereunder to the
Company for the work.  Notwithstanding the above, the limitations in
this clause shall not apply to third party claims which result or may result in
liability to the City and for which the Company has agreed to indemnify the City
pursuant to this Agreement.

     

    ARTICLE
III:  INFORMATION AND WORK TO BE FURNISHED BY

    THE
DEPARTMENT OF ENVIRONMENTAL PROTECTION

     

    The City,
acting through the NYCDEP, shall be responsible for all aspects of site
preparation work and construction activities related to the demolition and
rehabilitation of the Cake Storage Building, process equipment, and
miscellaneous systems at the 26th Ward
WPCP in order to accommodate the installation of the ARP®  equipment
and the operation of the ARP®.  Such activities shall be performed in
accordance with the design and engineering materials provided by the
Company.  Upon completion of all site preparation work and
construction activities, the NYCDEP shall certify to the Company that such
activities have been successfully completed.  The City shall be
responsible for the operation of all aspects of the 26th Ward
WPCP (other than the System which shall be operated by the
Company).  The obligations of the City are further described in the
Specific Requirements in Attachment 1.

     

    In order
to assist the Company in performing its Services, the NYCDEP shall make
available to the Company all existing studies, drawings, and other data in its
possession, which may be of assistance to the Company in performing the
Services.  It shall be the responsibility of the Company to determine
the reliability and accuracy of all information furnished by the
NYCDEP.  Where the Company finds that the information so furnished is
incomplete or inadequate it shall so inform the Commissioner and shall
incorporate its findings in its work product produced pursuant to this
Agreement.

     

    ARTICLE
IV:  PAYMENT FOR SERVICES

     

    The
specific provisions for payment for Services are set forth as
follows:

     

    
      	
               
      

            	
              A.

            	
              Phase
      1 - Design and Engineering Services

            

    

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              1.

            	
              The
      total lump sum cost for the design and engineering Services related to the
      demolition and rehabilitation of the Cake Storage Building and
      miscellaneous systems at the 26th
      Ward WPCP in order to accommodate the Company’s ARP®  is
      $5,786,197,  which shall be payable in accordance with
      Attachment No. 4 – Payment Schedule. Each payment shall be based upon
      achieving certain milestones (i.e. 30%, 60%, 90% plans and specifications)
      and accompanied by an invoice from the Company and approved by the
      NYCDEP.  With respect to each invoice, the Company shall be
      required to certify that it has completed the applicable work related to
      such invoice, as described in Attachment No. 6.  In addition,
      the Company shall include the relevant supporting material with each
      invoice.

            

    

     

    
      	
               
      

            	
              B.

            	
              Phase
      2 - Equipment Supply Services

            

    

     

    
      	
               
      

            	
              1.

            	
              The
      total lump sum cost for the equipment supply Services related to providing
      and installing the ARP®  equipment at the 26th
      Ward WPCP and starting-up the System is $13,441,300 which shall be payable
      in accordance with Attachment No. 4 – Payment Schedule. Each payment shall
      be based upon an invoice from the Company and approved by the
      NYCDEP.  With respect to each invoice, the Company shall be
      required to certify that it has completed the applicable work related to
      such invoice.  In addition, the Company shall include the
      relevant supporting material with each
invoice.

            

    

     

    
      	
               
      

            	
              2.

            	
              The
      parties acknowledge that the start-up period is thirty (30)
      days.  The payments for start-up services are included in the
      amount set forth above in subsection 1 of this clause B.  The
      Company shall be responsible for the marketing, sale, and/or disposal of
      ammonium sulfate.  The City will provide all
      utilities.

            

    

     

    
      	
               
      

            	
              C.

            	
              Phase
      3 - Operation and Maintenance
Services

            

    

     

    
      	
               
      

            	
              1.

            	
              The
      City shall pay the Company for operation and maintenance Services with
      respect to the System.  Once the startup of the System has been
      completed and accepted by the NYCDEP, the operational period shall
      commence.  The operational period shall have a one year (twelve
      (12) month) duration.  The annual base operating fee shall be
      $2,324,383.  During the operational period, the Company shall be
      paid on a monthly basis as detailed in Attachment No. 4 – Payment
      Schedule.  The Company shall submit a monthly invoice, no later
      than the fifteenth of the following month detailing personnel assigned to
      the project and the actual hours worked.  The Company shall
      submit a Final Summary Report within thirty (30) days of the last day of
      operation period and such Report shall summarize the performance of the
      System during the operating period.

            

    

     

    
      
        
        

      

      
        - 11
-

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
               
      

            	
              2.

            	
              In
      addition to the payments listed above, the City shall reimburse the
      Company, on a monthly basis, the Company’s actual costs related to (a)
      chemicals and reagents used with respect to the ARP®, including costs to
      transport and deliver such materials, and (b) the handling, storage, and
      transportation of byproducts from the System, including ammonium sulfate
      (including the Company’s reasonable internal costs and reasonable
      overhead).  The estimated amount for such items during the
      operational period (as described in Attachment 4) is $5,580,800, however,
      the Company shall be reimbursed for such costs based on the actual costs
      incurred during such period.  The Company shall be responsible
      for the marketing, sale, and/or disposal of ammonium
      sulfate.  The City will provide all
  utilities.

            

    

     

    
      	
               
      

            	
              D.

            	
              Potential
      Delays

            

    

     

    The lump
sum prices set forth in clauses A, B and C above are subject to change in the
event that work is not authorized to commence by December 31,
2010.  If such event(s) occur, the Company shall be entitled to
receive additional funds to cover any increased costs, which increased costs
shall be substantiated by the Company with all applicable supporting materials;
provided that any such increase shall be subject to approval by the
City.

     

    
      	
               
      

            	
              E.

            	
              Certain
      Taxes

            

    

     

    The City
acknowledges that the Company shall not be responsible for any New
York State or local sales or use taxes or excise taxes with respect to any
materials or equipment purchased or services provided with respect to this
Agreement on behalf of the City to the extent permitted by law.  In
addition, the City acknowledges that the Company shall not be responsible for
any real property taxes with respect to the 26th Ward
WPCP or the System.  In the event that any such taxes are assessed
against the Company, the City shall reimburse the Company for such
amounts.  The Company agrees to cooperate with the City and follow the
directions of the City in order to avoid the incurrence of taxes for which an
exemption exists.  The City shall provide the Company with its tax
identification number or other relevant documentation related to obtaining tax
exemptions.

     

    
      	
               
      

            	
              F.

            	
              Delivery
      of Invoices

            

    

     

    The City
and the Company acknowledge that the timing for the provision of design and
engineering Services and equipment supply Services will overlap and that
invoices related to both Phases will, to a certain extent, be provided
simultaneously.  The Company shall send all invoices to the following
address:

     

    Process
Planning Section

    Division
of Operation Support

    Bureau of
Wastewater Treatment

    Department
of Environmental Protection

    96-05
Horace Harding Expressway, 2/FL.

    Corona,
NY 11368

    

    
      
        
        

      

      
        - 12
-

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

        
 

      

    

    ARTICLE
V:  EXECUTION BY COMMISSIONER AND COMPANY

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement in
sextuplicate, three parts of which are to remain with the Commissioner, one
other to be filed with Comptroller of the City of New York, and two others to be
delivered to the Company.

     

    
      
        	 	THE
      CITY OF NEW YORK DEPARTMENT OF ENVIRONMENTAL PROTECTION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Caswell
      Holloway	 
	 	 	Commissioner	 
	 	 	 	 

      

    

     

    Approved
as to Form

    Certified
as to Legal Authority

     

    
      
        	 	 	 	 	 
	
                [indecipherable]

              	 	 	
              	 
	
                Assistant
      Corporation Counsel

              	 	 	
                 

              	 

      

    

    
    

     

    
      	Date: 	
              MAR 09
      2010

            	 

    

     

    
       

      
        
          	 	THE
      COMPANY	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Cary
      Bullock	 
	 	 	
                  ThermoEnergy  Corporation

                	 
	 	 	
                  Name:
      Cary Bullock

                	 
	 	 	
                  Title:
      CEO

                	 

        

      

    

    Seal and
Attest

     

    
      
        
        

      

      
        - 13
-

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    ACKNOWLEDGEMENT
BY COMMISSIONER

     

     

    
      	STATE OF NEW
      YORK	)	 
	 	)  SS.:	 
	COUNTY OF
      QUEENS	)	 

    

     

     

     

    On this
11th day of May, before me personally came Caswell Holloway to me know and known
to me to be the Commissioner of the Department of Environmental Protection of
the City of New York, the person described in and who executed the foregoing
instrument, and he acknowledge to me that he executed the same as such
Commissioner for the purposes therein mentioned.

     

    
      
        	 	 	 
	
                 

              	/s/ Jacqueline
      Ajax	 
	 	Notary
      Public or Commissioner of Deeds	 
	 	 	 
	 	
                Jacqueline
      Ajax

              	 
	 	
                Notary
      Public State  of New York

              	 
	 	
                No.
      01AJ4961476

              	 
	 	
                Qualified
      in Queens County

              	 
	 	
                Commission
      Expires Jan 22, 2014

              	 

      

    

     

    
      
        
        

      

      
        - 14
-

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    ACKNOWLEDGEMENT
BY CORPORATION

    
       

      
        	STATE OF NEW
      YORK	)	 
	 	)  SS.:	 
	COUNTY OF NEW
      YORK	)	 

      

       

       

    

     

    On this 7
day of May, before me personally came Cary Bullock, who being by me sworn, did
dispose and say that he resides at 124 West Capitol Street Little Rock, AK: that
he is the CEO of ThermoEnergy Corporation, the corporation described in and
which executed the foregoing instrument: that he knows the seal of said
corporation; that the seal affixed to the said instrument is such corporate
seal; that it was so affixed by order of the Board of Directors of said
corporation; and that he signed his name thereto by like order.

    
       

      
        
          	 	 	 
	
                   

                	/s/ Jacqueline
      Ajax	 
	 	Notary
      Public or Commissioner of Deeds	 
	 	 	 
	 	
                  Jacqueline
      Ajax

                	 
	 	
                  Notary
      Public State  of New York

                	 
	 	
                  No.
      01AJ4961476

                	 
	 	
                  Qualified
      in Queens County

                	 
	 	
                  Commission
      Expires Jan 22, 2014

                	 

        

      

    

    

    
      
        
        

      

      
        - 15
-

        
          

        

      

      
        
        

      

    

    
    

    
      
        Contract
No. PO-98B

         

         

      

    

    
      	
               

               

               

              

               

               

              APPENDIX
      A14

               

               

              GENERAL PROVISIONS
      GOVERNING CONTRACTS FOR

               

               

              CONSULTANTS,
      PROFESSIONAL AND TECHNICAL SERVICES

               

               

              For
      the Services of:

               

               

              THERMOENERGY
      CORPORATION

               

               

              
                
      

               

              
                
      

              
                
      

              

               

              For

               

              Ammonia
      Removal Process System

               

              

               

              Contract

               

               

               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      Contract
No. PO-98B

       

       

    

    APPENDIX
A

     

    GENERAL PROVISIONS GOVERNING
CONTRACTS FOR CONSULTANTS, PROFESSIONAL AND TECHNICAL
SERVICES

    
    

     

    
      	ARTICLE 1.
      DEFINITIONS	
              1

            
	 	 	 	 
	ARTICLE
      2.  REPRESENTATIONS AND WARRANTIES	
              1

            
	 	 	 	 
	 	
              2.1

            	PROCUREMENT OF
      AGREEMENT	
              1

            
	 	 	 	 
	 	
              2.2

            	CONFLICT OF
      INTEREST	
              2

            
	 	 	 	 
	 	
              2.3

            	FAIR
    PRACTICES	
              2

            
	 	 	 	 
	ARTICLE
      3.  AUDIT BY THE DEPARTMENT AND CITY	
              2

            
	 	 	 	 
	ARTICLE
      4.  COVENANTS OF THE CONSULTANT	
              3

            
	 	 	 	 
	 	
              4.1

            	EMPLOYEES	
              3

            
	 	 	 	 
	 	
              4.2

            	INDEPENDENT
      CONSULTANT STATUS	
              4

            
	 	 	 	 
	 	
              4.3

            	INSURANCE	
              5

            
	 	 	 	 
	 	
              4.4

            	PROTECTION OF CITY
      PROPERTY	
              9

            
	 	 	 	 
	 	
              4.5

            	CONFIDENTIALITY	
              9

            
	 	 	 	 
	 	
              4.6

            	BOOKS AND
      RECORDS	
              10

            
	 	 	 	 
	 	
              4.7

            	RETENTION OF
      RECORDS	
              10

            
	 	 	 	 
	 	
              4.8

            	COMPLIANCE WITH
      LAW	
              10

            
	 	 	 	 
	 	
              4.9.1

            	INVESTIGATION
      CLAUSE	
              10

            
	 	 	 	 
	 	
              4.10

            	
              ASSIGNMENT 

            	
              12

            
	 	 	 	 
	 	
              4.11

            	SUBCONTRACTING	
              13

            
	 	 	 	 
	 	
              4.12

            	
              PUBLICITY 

            	
              13

            

    

    
       

      
        
        

      

      
        i

        
          

        

      

      
        
        

      

      
      

      
        
          Contract
No. PO-98B

           

           

        

      

      
        	 	
                4.13

              	PARTICIPATION IN AN
      INTERNATIONAL BOYCOTT	
                14

              
	 	 	 	 
	 	
                4.14

              	
                INVENTIONS, PATENTS AND
      COPYRIGHTS 

              	
                15

              
	 	 	 	 
	 	
                4.15

              	INFRINGEMENTS	
                15

              
	 	 	 	 
	 	
                4.16

              	ANTI-TRUST	
                15

              
	 	 	 	 
	ARTICLE
      5.  TERMINATION	
                15

              
	 	 	 	 
	 	
                5.1

              	TERMINATION OF
      AGREEMENT	
                15

              
	 	 	 	 
	ARTICLE 6. CLAIMS,
      WAIVER, ETC	
                17

              
	 	 	 	 
	 	
                6.1

              	CONFLICT OF
      LAWS	
                17

              
	 	 	 	 
	 	
                6.2

              	GENERAL
      RELEASE	
                18

              
	 	 	 	 
	 	
                6.3

              	CLAIMS AND ACTIONS
      THEREON	
                18

              
	 	 	 	 
	 	
                6.4

              	NO CLAIM AGAINST
      OFFICERS, AGENTS OR EMPLOYEES	
                18

              
	 	 	 	 
	 	
                6.5

              	WAIVER	
                18

              
	 	 	 	 
	 	
                6.6

              	NOTICE	
                18

              
	 	 	 	 
	 	
                6.7

              	ALL LEGAL PROVISIONS
      DEEMED INCLUDED	
                19

              
	 	 	 	 
	 	
                6.8

              	SEVERABILITY	
                19

              
	 	 	 	 
	 	
                6.9

              	POLITICAL
      ACTIVITY	
                19

              
	 	 	 	 
	 	
                6.10

              	MODIFICATION	
                19

              
	 	 	 	 
	 	
                6.11

              	PARAGRAPH
      HEADINGS	
                20

              
	 	 	 	 
	 	
                6.12

              	NO REMOVAL OF
      RECORDS FROM PREMISES	
                20

              
	 	 	 	 
	 	
                6.13

              	INSPECTION AT
      SITE	
                20

              
	 	 	 	 
	ARTICLE
      7.  MERGER	
                20

              
	 	 	 	 
	ARTICLE
      8.  CONDITIONS PRECEDENT	
                20

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

        
          Contract
No. PO-98B

           

           

        

        
          	ARTICLE
      9.  PROCUREMENT POLICY BOARD RULES	
                  21

                
	 	 	 	 
	ARTICLE
      10.  STATE LABOR LAW AND CITY ADMINISTRATIVE CODE	
                  21

                
	 	 	 	 
	ARTICLE
      11.  RESOLUTION OF DISPUTES	
                  22

                
	 	 	 	 
	ARTICLE
      12.  CONTRACT CHANGES	
                  27

                
	 	 	 	 
	ARTICLE
      13.  EXTENSION OF TIME	
                  27

                
	 	 	 	 
	
                  ARTICLE
      14.  CHOICE OF LAW, CONSENT TO JURISDICTION AND VENUE
      FORUM  PROVISION

                	
                  28

                
	 	 	 	 
	ARTICLE
      15.  PROMPT   PAYMENT	
                  29

                
	 	 	 	 
	ARTICLE
      16.  E.O. 50 - EQUAL EMPLOYMENT OPPORTUNITY	
                  29

                
	 	 	 	 
	ARTICLE 17. CONTRACT
      PERFORMANCE EVALUATION	
                  30

                
	 	 	 	 
	
                  MACBRIDE
      PRINCIPLES PROVISIONS FOR NEW YORK CITY
      CONTRACTORS/CONSULTANTS

                	
                  31

                
	 	 	 	 
	VOTER
      REGISTRATION	
                  33

                
	 	 	 	 
	AFFIRMATION	
                  37

                

        

         

        
          
            
            

          

          
            iii

            
              

            

          

          
            
            

          

        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    APPENDIX
A

     

    GENERAL PROVISIONS GOVERNING
CONTRACTS FOR

     

    CONSULTANTS, PROFESSIONAL
AND TECHNICAL SERVICES

     

    ARTICLE
1. DEFINITIONS

     

    As used
throughout this Agreement, the following terms shall have the meaning set forth
below:

     

    
      	
               
      

            	
              a.

            	
              “City”
      shall mean the City of New York, its departments and political
      divisions.

            

    

     

    
      	
               
      

            	
              b.

            	
              “Comptroller”
      shall mean the Comptroller of the City of New
  York.

            

    

     

    
      	
               
      

            	
              c.

            	
              “Department”
      shall mean the New York
      City Department of Environmental Protection
  (“DEP”).

            

    

     

    
      	
               
      

            	
              d.

            	
              “Commissioner”
      or “Administrator” shall mean the Commissioner of  the
      New York City Department of Environmental Protection, or his or her
      duly authorized representative.  The term “duly authorized
      representative” shall include any person or persons acting within the
      limits of his or her authority.

            

    

     

    
      	
               
      

            	
              e.

            	
              “Law”
      or “Laws” shall include but not be limited to the New York City Charter,
      the New York City Administrative Code, a local law of the City of New
      York, and any ordinance, rule or regulation having the force of
      law.

            

    

     

    ARTICLE
2.  REPRESENTATIONS AND WARRANTIES

     

    2.1           PROCUREMENT OF
AGREEMENT

     

    
      	
               
      

            	
              A.

            	
              The
      Consultant represents and warrants that no person or selling agency has
      been employed or retained to solicit or secure this Agreement upon an
      agreement or understanding for a commission, percentage, brokerage fee,
      contingent fee or any other compensation.  The Consultant
      further represents and warrants that no payment, gift or thing of value
      has been made, given or promised to obtain this or any other agreement
      between the parties.  The Consultant makes such representations
      and warranties to induce the City to enter into this Agreement and the
      City relies upon such representations and warranties in the execution
      hereof.

            

    

     

    
      	
               
      

            	
              B.

            	
              For
      a breach or violation of such representations or warranties, the
      Administrator shall have the right to annul this Agreement without
      liability, entitling the City to recover all monies paid hereunder and the
      Consultant shall not make claim for, or be entitled to recover, any sum or
      sums due under this Agreement.  This remedy, if effected, shall
      not constitute the sole remedy afforded the City for the falsity or
      breach, nor shall it constitute a waiver of the City's right to claim
      damages or refuse payment or to take any other action provided for by law
      or pursuant to this Agreement.

            

    

     

    
      
        
        

      

      
        GP-1

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              2.2

            	
              CONFLICT OF
      INTEREST

            

    

     

    The
Consultant represents and warrants that neither it nor any of its directors,
officers, members, partners or employees, has any interest nor shall they
acquire any interest, directly or indirectly, which would or may conflict in any
manner or degree with the performance or rendering of the services herein
provided.  The Consultant further represents and warrants that in the
performance of this Agreement no person having such interest or possible
interest shall be employed by it.  No elected official or other
officer or employee of the City or Department, nor any person whose salary is
payable, in whole or in part, from the City Treasury, shall participate in any
decision relating to this Agreement which affects his or her personal interest
or the interest of any corporation, partnership or association in which is,
directly or indirectly, interested; nor shall any such person have any interest,
direct or indirect, in this Agreement or in the proceeds thereof.

     

    
      	
              2.3

            	
              FAIR
      PRACTICES

            

    

     

    The
Consultant and each person signing on behalf of any consultant represents and
warrants and certifies, under penalty of perjury, that to the best of its
knowledge and belief:

     

    
      	
               
      

            	
              A.

            	
              The
      prices in this contract have been arrived at independently without
      collusion, consultation, communication, or agreement, for the purpose of
      restricting competition, as to any matter relating to such prices with any
      other bidder or with any
competitor;

            

    

     

    
      	
               
      

            	
              B.

            	
              Unless
      otherwise required by law, the prices which have been quoted in this
      contract and on the proposal submitted by the Consultant have not been
      knowingly disclosed by the Consultant prior to the proposal opening,
      directly or indirectly, to any other bidder or to any competitor;
      and

            

    

     

    
      	
               
      

            	
              C.

            	
              No
      attempt has been made or will be made by the Consultant to induce any
      other person, partnership or corporation to submit or not to submit a
      proposal for the purpose of restricting
  competition.

            

    

     

    The fact
that the Consultant (a) has published price lists, rates, or tariffs covering
items being procured, (b) has informed prospective customers of proposed or
pending publications of new or revised price lists for such items, or (c) has
sold the same items to other customers at the same prices being bid, does not
constitute, without more, a disclosure within the meaning of the
above.

     

    ARTICLE
3.  AUDIT BY THE DEPARTMENT AND CITY

     

    
      	
              3.1

            	
              All
      vouchers or invoices presented for payment to be made hereunder, and the
      books, records and accounts upon which said vouchers or invoices are based
      are subject to audit by the Department and by the Comptroller of the City
      of New York pursuant to the powers and responsibilities as conferred upon
      said Department and said Comptroller by the New York City Charter and
      Administrative Code of the City of New York, as well as all orders and
      regulations promulgated pursuant
thereto.

            

    

     

    
      
        
        

      

      
        GP-2

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
              3.2

            	
              The
      Consultant shall submit any and all documentation and justification in
      support of expenditures or fees under this Agreement as may be required by
      said Department and said Comptroller so that they may evaluate the
      reasonableness of the charges and shall make its records available to the
      Department and to the Comptroller as they consider
    necessary.

            

    

     

    
      	
              3.3

            	
              All
      books, vouchers, records, reports, canceled checks and any and all similar
      material may be subject to periodic inspection, review and audit by the
      State of New York, Federal Government and other persons duly authorized by
      the City.  Such audit may include examination and review of the
      source and application of all funds whether from the City, any State, the
      Federal Government, private sources or
  otherwise.

            

    

     

    
      	
              3.4

            	
              The
      Consultant still not be entitled to final payment under the Agreement
      until all requirements have been satisfactorily
  met.

            

    

     

    ARTICLE
4.  COVENANTS OF THE CONSULTANT

     

    
      	
              4.1

            	
              EMPLOYEES

            

    

     

    
      	
               
      

            	
              A.

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

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      Consultant shall be solely responsible for all physical injuries or death
      to its agents, servants, or employees or to any other person or damage to
      any property sustained during its operations and work on the project under
      this agreement resulting from any act of omission or commission or error
      in judgment of any of its officers, trustees, employees, agents, servants,
      or independent contractors, and shall hold harmless and indemnify the City
      from liability upon any and all claims for damages on account of such
      injuries or death to any such person or damages to property on account of
      any neglect, fault or default of the Consultant, its officers, trustees,
      employees, agents, servants, or independent contractors.  The
      Consultant shall be solely responsible for the safety and protection of
      all of its employees whether due to the negligence, fault or default of
      the Consultant or not.

            

    

     

    
      
        
        

      

      
        GP-3

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              C.

            	
              Workers' Compensation
      and Disability Benefits

            

    

     

    If this
Agreement be of such a character that the employees engaged thereon are required
to be insured by the provision of Chapter 615 of the Laws of 1922, known as the
“Workers' Compensation Law” and acts amendatory thereto, the Agreement shall be
void and of no effect unless the Consultant shall secure compensation for the
benefit of, and keep insured during the life of this Agreement such employees in
compliance with the provision of said law, inclusive of Disability Benefits;
and, shall furnish the Department with two (2) certificates of these insurance
coverages.

     

    
      	
               
      

            	
              D.

            	
              Unemployment
      Insurance

            

    

     

    Unemployment
Insurance coverage shall be obtained and provided by the Consultant for its
employees.

     

    
      	
               
      

            	
              E.

            	
              Minimum
      Wage

            

    

     

    Except
for those employees whose minimum wage is required to be fixed pursuant to
Section 220 of the Labor Law of the State of New York, all persons employed by
the Consultant in the performance of this Agreement shall be paid, without
subsequent deduction or rebate, unless expressly authorized by law, not less
than the minimum wage as prescribed by law.  Any breach or violation
of the foregoing shall be deemed a breach or violation of a material provision
of this Agreement.

     

    
      	
              4.2

            	
              INDEPENDENT CONSULTANT
      STATUS

            

    

     

    The
Consultant and the Department agree that the Consultant is an independent
consultant, and not an employee of the Department or the City of New York, and
that in accordance with such status as independent consultant, the Consultant
covenants and agrees that neither it nor its employees or agents will hold
themselves out as, nor claim to be, officers or employees of the City of New
York, or of any department, agency or unit thereof, by reason hereof, and that
they will not, be reason hereof, make any claim, demand or application to or for
any rights or privilege applicable to an officer or employee of the City of New
York, including, but not limited to, Workmen's Compensation coverage,
Unemployment Insurance Benefits, Social Security coverage or employee retirement
membership or credit.

     

    
      
        
        

      

      
        GP-4

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    
      	
              4.3

            	
              INSURANCE

            

    

     

    A.           AGREEMENT TO
INSURE

     

    
      	
               
      

            	
              The
      following general schedule of insurance is required for this
      Agreement.

            

    

     

    Commercial General
Liability

     

    
      	
               
      

            	
              x

            	
              Commercial
      General Liability CG 00 01 (ed.10/93)
      or  equivalent.  Combined Single Limit-Bodily Injury
      and  Property Damage:

            

    

     

    $ 3,000,000 per
occurrence:

     

    $ 3,000,000
products/completed operations aggregate

     

    $ 3,000,000 personal
injury

     

    $ 6,000,000 general
aggregate

     

    $ 25,000 per claim
maximum deductible, except as approved by DEP.

     

    Workers
Compensation

     

    
      	
               
      

            	
              x

            	
              Statutory
      per New York State Law without regard to
  jurisdiction.

            

    

     

    
      	
               
      

            	
               

            	
              x

            	
              Business
      Auto Coverage:

            

    

     

    CA 00 01
(ed. 06/92) or equivalent Combined Single Limit - Bodily Injury and Property
Damage.  The following coverage must be provided:

     

    
      	
               
      

            	
              Bodily
      Injury & Property Damage $2,000,000 Each
      Occurrence

            

    

     

    
      	
               
      

            	
               

            	
              o

            	
              Professional
      Liability per CNA Design Professionals 1-87503-A (ed 08/83) or
      equivalent as applicable for all design and engineering service afforded
      under this contract except as approved by DEP.

            

    

     

    $  per
claim

     

    $ 
aggregate

     

    $   maximum
deductible, except as specifically approved pursuant to ¶vii below.

     

    
      	
               
      

            	
              (i)

            	
              The
      Consultant is required to obtain and to maintain insurance outlined in the
      above Schedule.

            

    

     

    
      
        
        

      

      
        GP-5

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
               
      

            	
              (ii)

            	
              The
      insurance required for this contract must be on forms acceptable to DEP
      and offered by Insurers acceptable to DEP.  The insurance for
      all New York Consultants must be issued by New York authorized carriers
      except as approved by DEP
      and in any event must comply with all standards of form set forth in
      above.  Insurance for non-New York Consultants must be through
      insurers and sureties admitted and authorized in the state of headquarters
      of the Consultant,
      have an A.M. rating of A or better and meet the standards of form set
      forth in New York Law & Regulation apply without regard to
      jurisdiction as standards of
coverage.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Where
      circumstances warrant, DEP may, at its discretion subject to acceptance by
      the Law Department and/or the Office of the Comptroller, accept letters of
      credit or custodial accounts in lieu of specific insurance
      requirements.  The letter of credit must be on a form prescribed
      by DEP
      and payable at a New York City office of  a bank approved by
      DEP.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              The
      Consultant agrees that all insurance contributing to satisfaction of
      insurance requirements shall not be materially modified, terminated or
      canceled by the Consultant
      without prior written approval of
DEP.

            

    

     

    
      	
               
      

            	
              (v)

            	
              The
      Consultant shall be solely responsible for payment of all premiums for
      insurance contributing to satisfaction of the above Schedule requirements
      and shall be
      solely responsible for the payment of all deductibles to which such
      policies are subject, whether or not the City of New York is an insured
      under the policy.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Claims
      made policies will be accepted only for professional liability and such
      other risks as are authorized by the New York State Insurance
      Department.  All such policies contributing to satisfaction of
      requirements shall have extended reporting period option or automatic
      coverage of not less than two years.  If provided as an option,
      the Consultant agrees to purchase the extended reporting period on
      cancellation or termination unless a new policy is effecting with a
      retroactive date, including at least last policy
  year.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              The
      Consultant shall promptly notify its Insurance Carrier and DEP’s General
      Counsel within 24 hours of
      any accidents arising in
      the course of operations under this contract causing bodily injury or
      property damage and shall cooperate fully with the Department in providing
      all such records and information as may be requested by DEP’s General
      Counsel in anticipation of claims against the City which may arise from
      the accident. A complete written report of the accident shall be made
      within five business days.

            

    

     

    Notice to
the Insurance Carrier by the Consultant of an accident or claim on the site
shall constitute notice by the City to the Insurance Carrier.

     

    
      	
               
      

            	
              (viii)

            	
              The
      Consultant may apply to DEP for approval of higher deductibles based on
      financial capacity and quality of the carrier affording
      coverage.

            

    

     

    
      
        
        

      

      
        GP-6

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    
      	
              1. 

            	
              Commercial
      General Liability:

            

    

     

    Before
commencing work at the site, the Consultant shall procure a commercial general
liability insurance policy issued by a New York admitted carrier via
the New York admitted market through a New York licensed resident broker in
the  Consultant’s name, and
naming the, New York City Department of Environmental Protection as additional
insured (CG 20 10 (10/93) ), and endorsed to cover liability assumed by the
Consultant under the indemnity provisions of this agreement.  This
insurance policy must be maintained during the life of the contract and shall
protect the City, as additional insured, the Consultant and its
subconsultants  performing work at the site from claims for property
damage and/or bodily injury which may arise from operations under this contract,
whether such operations are performed by the Consultant or anyone directly or
indirectly employed by the Consultant.  Two certificates of insurance
shall be furnished to the Contract Management Office in a manner acceptable to
DEP, together with copies of all endorsements as pertain to the requirements of
this contract.

     

    The
policy shall contain no exclusions or endorsements which are not acceptable to
the City and to DEP and shall be of a form and by an insurance company
acceptable to the City and DEP.

     

    Commercial General Liability
- Endorsements and Exclusions

     

    The
following endorsements are required to be made on the policy.

     

    
      	
               
      

            	
              a.

            	
              Notice shall be
      addressed to the  Department of Environmental Protection, Agency
      Chief Contracting Officer, ATTN: Contract Management Office (Insurance),
      17th Floor,  59-17 Junction Blvd., Corona, New York
      11368

            

    

     

    
      	
               
      

            	
              b.

            	
              Notice of Cancellation
      of Policy:  The policy shall not be canceled, terminated,
      modified, or changed by the Insurance Carrier or Consultant unless
      the  30 days prior
      written notice is sent to the Contract Management
  Office.

            

    

     

    
      	
               
      

            	
              c.

            	
              The
      following shall also be added as additional
  insureds:

            

    

     

    
      	
               
      

            	 

    

     

    
      	
               
      

            	 

    

     

    
      	
               
      

            	 

    

     

    
      	
              2.

            	
              Business
      Auto Coverage

            

    

     

    The
Consultant shall provide the Contract Management Office with evidence of
insurance covering all owned, non-owned, and hired vehicles to be used in
connection with this Agreement.  If on a "schedule autos" basis,
Consultant shall present the schedule of insured autos, including the vehicles
to be used for operations under this contract.

     

    
      
        
        

      

      
        GP-7

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              3.

            	
              Workers
      Compensation and Disability Benefit
  Insurance

            

    

     

    Prior to
the execution of this contract, the Consultant shall procure Workers
Compensation Insurance in accord with the Laws of the State of New York, without
regard to jurisdiction, on behalf of all employees who are to provide labor or
service under this contract.

     

    If leased
employees are to be used under this contract, consultant shall furnish copy of
lease agreement to the Department’s Contract Management Office, together with
confirmation of New York mandated endorsements to Workers Compensation policies
of contractors and leasing company.  Prior to starting work, a list of
all leased employees shall be furnished to the Department’s Project Manager for
this contract.

     

    Two
certificates of such insurance or authority for
self-insurance shall be furnished to the Contract Management
Office.

     

    
      
        	
                4.

              	
                Professional
      Liability Insurance:

              

      

    

     

    
      	 	
              CNA
      DESIGN PROFESSIONALS - 1-87503-A (ed.8/83), or
  equivalent.

            

    

     

    Covering
as insured the Consultant.

     

    
      	 	
              Professional
      liability policies shall include an endorsement whereby the Consultant
      indemnifies and holds harmless the Commissioner and the City and each
      officer, agent, and employee of the City against all claims against any of
      them, for personal injury or wrongful death or property damage arising out
      of the negligent performance of professional services or caused by any
      error, omission, or negligent act of the Consultant or anyone employed by
      the Consultant.

            

    

     

    
      	 	
              All
      subconsultants providing professional services under this contract shall
      also provide evidence of professional liability insurance to the Contract
      Management Office at limits appropriate to the exposures of the
      subconsultants work, with deductible suitable for the financial capacity
      of the subconsultants and through carriers and on-forms acceptable to
      DEP.

            

    

     

    
      	
              B.

            	
              PROOF
      OF INSURANCE

            

    

     

    
      	 	
              The
      Consultant agrees to procure and maintain insurance of the kinds and in
      the amounts hereinabove provided by insurance companies authorized to do
      business in the State of New York, covering all work under this Agreement
      whether performed by the Consultant or
  subconsultants.

            

    

     

    Before
commencing work under this Agreement, the Consultant shall furnish to the
Contract Management Office, two certificates of such insurance  (the
original and one copy) and copies of forms, policies, endorsements or other
documentation as may be required to determine compliance with insurance
requirements.

     

    
      
        
        

      

      
        GP-8

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
              C.

            	
              DURATION
      OF INSURANCE

            

    

     

    
      	 	
              The
      insurance policies described in this Article shall be continuously kept in
      force for the term of the contract, except
that:

            

    

     

    Professional
Liability Insurance shall be maintained until at least one year after completion
of all work required under this Agreement.

     

    
      	
              D.

            	
              In
      the event that any claim is made or any action is brought against the City
      arising out of negligent or careless acts of an employee of the
      Consultant, either within or without the scope of his employment, or
      arising out of Consultant's negligent performance of this Agreement, then
      the City shall the right to withhold further payments hereunder for the
      purpose of set-off in sufficient sum to cover the said claim or
      action.  The rights and remedies of the City provided for in
      this clause shall not be exclusive and are in addition to any other rights
      and remedies provided by law or this
Agreement.

            

    

     

    
      	
              4.4

            	
              PROTECTION OF CITY
      PROPERTY

            

    

     

    
      	
               
      

            	
              A.

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

            

    

     

    
      	
               
      

            	
              B.

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

            

    

     

    
      	
               
      

            	
              C.

            	
              The
      Consultant agrees to indemnify the City and hold it harmless from any and
      all liability or claims for damages due to any such loss or damage to any
      such City property described in subsection A
  above.

            

    

     

    
      	
               
      

            	
              D.

            	
              The
      rights and remedies of the City provided herein shall not be exclusive and
      are in addition to any other rights and remedies provided by law or by
      this Agreement.

            

    

     

    
      	
              4.5

            	
              CONFIDENTIALITY

            

    

     

    All of
the reports, information or data, furnished to or prepared, assembled or used by
the Consultant under this Agreement are to be held confidential, and prior to
publication, the Consultant agrees that the same shall not be made available to
any individual or organization without the prior written approval of the
Department.

     

    
      
        
        

      

      
        GP-9

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    
      	
              4.6

            	
              BOOKS AND
      RECORDS

            

    

     

    The
Consultant agrees to maintain separate and accurate books, records, documents
and other evidence and accounting procedures and practices which sufficiently
and properly reflect all direct and indirect costs of any nature expended in the
performance of this Agreement.

     

    
      	
              4.7

            	
              RETENTION OF
      RECORDS

            

    

     

    The
Consultant agrees to retain all books, records, and other documents relevant to
this Agreement for six years after the final payment or termination of this
Agreement, whichever is later.  City, State and Federal auditors and
any other persons duly authorized by the Department shall have full access to
and the right to examine any of said materials during said period.

     

    
      	
              4.8

            	
              COMPLIANCE WITH
      LAW

            

    

     

    Consultant
shall render all services under this Agreement in accordance with applicable
provisions of federal, state and local laws, rules and regulations as are in
effect at the time such services are rendered.

     

    
      	
              4.9.1

            	
              INVESTIGATION
      CLAUSE

            

    

     

    The
parties to this agreement 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 Inspector General of a 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.

     

    
      	
              4.9.2(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 other 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;

            

    

     

    
      	
              4.9.2(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 Inspector General of 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, contract, or license entered into with the City,
      the State, or any political subdivision thereof or any local development
      corporation within the City, then;

            

    

     

    
      
        
        

      

      
        GP-10

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
              4.9.3(a)

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

            

    

     

    
      	
              4.9.3(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 5 below without the City
      incurring any penalty or damages for delay or
  otherwise.

            

    

     

    
      
        	
                4.9.4

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

              

      

    

     

    
      	
              4.9.4(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/or

            

    

     

    
      	
              4.9.4(b)

            	
              The
      cancellation or termination of any and all such existing City 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 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 City

            

    

     

    
      	
              4.9.5

            	
              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:

            

    

     

    
      	
              4.9.5(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.

            

    

     

    
      	
              4.9.5(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.

            

    

     

    
      	
              4.9.5(c)

            	
              The
      nexus of the testimony sought to the subject entity and its contracts,
      leases, permits or licenses with the
City.

            

    

     

    
      
        
        

      

      
        GP-11

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              4.9.5(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 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 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.

            

    

     

    
      	
              4.9.6(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.

            

    

     

    
      	
              4.9.6(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.    

            

    

     

    
      	
              4.9.6(c)

            	
              The
      term “entity” as used herein shall be defined as any firm, partnership,
      corporation, association, or person that receives monies, benefits,
      licenses, leases, or permits from or through the City, or otherwise
      transacts business with the City.

            

    

     

    
      	
              4.9.6(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.

            

    

     

    
      	
              4.9.7

            	
              In
      addition to and notwithstanding any other provision of this agreement the
      Commissioner or agency head may in his or her sole discretion terminate
      this agreement upon not less that three (3) days written notice in the
      event consultant 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 of other person, firm, corporation
      or entity for any purpose which may be related to the procurement or
      obtaining of this agreement by the consultant, or affecting the
      performance of this contract.

            

    

     

    
      	
              4.10

            	
              ASSIGNMENT

            

    

     

    
      	
               
      

            	
              A.

            	
              The
      Consultant shall not assign, transfer, convey, or otherwise dispose of
      this Agreement or of Consultant's rights, obligations, duties, in whole or
      in part, or of its right to execute it, or its right, title or interest in
      it or any part thereof, or assign, by power of attorney or otherwise, any
      of the notices due or to become due under this contract, unless the prior
      written consent of the Administrator shall be obtained.  Any
      such assignment, transfer, conveyance or other disposition without such
      consent shall be void.

            

    

     

    
      	
               
      

            	
              B.

            	
              Failure
      of the Consultant to obtain any required consent to any assignment, shall
      be cause for termination for cause, at the option of the option of the
      Administrator; and if so terminated, the City shall thereupon be relieved
      and discharged from any further liability and obligation to the
      Consultant, its assignees or transferees, and all monies that may become
      due under the contract shall be forfeited to the City except so much
      thereof as may be necessary to pay the Consultant's
    employees.

            

    

     

    
      
        
        

      

      
        GP-12

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
               
      

            	
              C.

            	
              The
      provisions of this clause shall not hinder, prevent, or affect or
      assignment by the Consultant for the benefit of its creditors made
      pursuant to the laws of the State of New
York.

            

    

     

    
      	
               
      

            	
              D.

            	
              This
      Agreement may be assigned by the City to any corporation, agency or
      instrumentality having authority to accept such
  assignment.

            

    

     

    
      	
              4.11

            	
              SUBCONTRACTING

            

    

     

    
      	
               
      

            	
              A.

            	
              The
      Consultant agrees not to enter into any subcontracts for the performance
      of its obligations, in whole or in part, under this Agreement without the
      prior written approval of the Department.  Two copies of each
      such proposed subcontract shall be submitted to the Department with the
      Consultant's written request for approval.  All such
      subcontracts shall contain provisions
  specifying:

            

    

     

    
      	
               
      

            	
              1.

            	
              That
      the work performed by the subconsultant must be in accordance with the
      terms of the Agreement between the Department and the
      Consultant,

            

    

     

    
      	
               
      

            	
              2.

            	
              That
      nothing contained in such agreement shall impair the rights of the
      Department,

            

    

     

    
      	
               
      

            	
              3.

            	
              That
      nothing contained herein, or under this Agreement between the Department
      and the Consultant, shall create any contractual relation between the
      subconsultant and the Department,
and

            

    

     

    
      	
               
      

            	
              4.

            	
              That
      the subconsultant specifically agrees to be bound by the confidentiality
      provision set forth in this Agreement between the Department and the
      Consultant.

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      Consultant agrees that it is fully responsible to the Department for the
      acts and omissions of the subconsultants and of persons either directly or
      indirectly employed by them as it is for the acts and omissions of persons
      directly employed by it.

            

    

     

    

     

    
      	
               
      

            	
              C.

            	
              The
      aforesaid approval is required in all cases other than individual
      employer-employee contracts.

            

    

     

    
      	
               
      

            	
              D.

            	
              The
      Consultant shall not in any way be relieved of any responsibility under
      this Contract by any subcontract.

            

    

     

    
      	
              4.12

            	
              PUBLICITY

            

    

     

    
      	
               
      

            	
              A.

            	
              The
      prior written approval of the Department is required before the Consultant
      or any of its employees, servants, agents, or independent contractors may,
      at any time, either during or after completion or termination of this
      Agreement, make any statement to the press or issue any material for
      publication through any media of communication bearing on the work
      performed or data collected under this
  Agreement.

            

    

     

    
      
        
        

      

      
        GP-13

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              B.

            	
              If
      the Contract publishes a work dealing with any aspect of performance under
      this Agreement, or of the results and accomplishments attained in such
      performance, the Department shall have a royalty free, non-exclusive and
      irrevocable license to reproduce, publish or otherwise use and to
      authorize others to use the
publication.

            

    

     

    
      	
              4.13

            	
              PARTICIPATION IN AN
      INTERNATIONAL BOYCOTT

            

    

     

    
      	
               
      

            	
              A.

            	
              The
      Consultant agrees that neither the Consultant 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 of the Commerce Department or any other agency of
      the United States as to, or conviction of the Consultant or a
      substantially-owned affiliated company thereof, participation in an
      international boycott in violation of the provisions of the Export
      Administration Act of 1979, as amended, or the regulations promulgated
      thereunder, the Comptroller may, at his option, render forfeit and void
      this contract.

            

    

     

    
      	
               
      

            	
              C.

            	
              The
      Consultant shall comply, in all respects, with the provisions of § 6-114
      of the Administrative Code of the City of New York and the rules and
      regulations issued by the Comptroller
  thereunder.

            

    

     

    
      
        
        

      

      
        GP-14

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              4.14

            	
              INVENTIONS, PATENTS
      AND COPYRIGHTS

            

    

     

    
      	
               
      

            	
              A.

            	
              Any
      discovery or invention arising out of or developed in the course of
      performance of this Agreement shall be promptly and fully reported to the
      Department, and if this work is supported by a federal grant of funds,
      shall be promptly and fully reported to the Federal Government for
      determination as to whether patent protection on such invention shall be
      sought and how the rights in the invention or discovery, including rights
      under any patent issued thereon, shall be disposed of and administered in
      order to protect the public
interest.

            

    

     

    
      	
               
      

            	
              B.

            	
              No
      report, document or other data produced in whole or in part with contract
      funds shall be copyrighted by the Consultant nor shall any notice of
      copyright be registered by the Consultant in connection with any report,
      document or other data developed for the
  contract.

            

    

     

    
      	
               
      

            	
              C.

            	
              In
      no case shall subsections A and B of this section apply to, or prevent the
      Consultant from asserting or protecting its rights in any report, document
      or other data, or any invention which existed prior to or was developed or
      discovered independently from the activity directly related to this
      Agreement.

            

    

     

    
      	
              4.15

            	
              INFRINGEMENTS

            

    

     

    The
Consultant shall be liable to the Department and hereby agrees to indemnify and
hold the Department harmless for any damage or loss or expense sustained by the
Department from any infringement by the Consultant of any copyright, trademark
or patent rights of design, systems, drawings, graphs, charts, specifications or
printed matter furnished or used by the Consultant in the performance of this
Agreement.

     

    
      	
              4.16

            	
              ANTI-TRUST

            

    

     

    The
Consultant hereby assigns, sells, and transfers to the City all right, title and
interest in and to any claims and causes of action arising under the anti-trust
laws of the State of New York or of the United States relating to the particular
goods or services purchased or procured by the City under this
Agreement.

     

    ARTICLE
5.  TERMINATION

     

    
      	
              5.1

            	
              TERMINATION OF
      AGREEMENT

            

    

     

    
      	
               
      

            	
              A.

            	
              The
      Department and/or City shall have the right to terminate this Agreement,
      in whole or in part:

            

    

     

    
      	
               
      

            	
              1.

            	
              Under
      any right to terminate as specified in any section of this
      Agreement.

            

    

     

    
      	
               
      

            	
              2.

            	
              Upon
      the failure of the Consultant to comply with any of the terms and
      conditions of this Agreement.

            

    

     

    
      
        
        

      

      
        GP-15

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    
      	
               
      

            	
              3.

            	
              Upon
      the Consultant's becoming
insolvent.

            

    

     

    
      	
               
      

            	
              4.

            	
              Upon
      the commencement under the Bankruptcy Act of any proceeding by or against
      the Consultant, either voluntarily or
  involuntarily.

            

    

     

    
      	
               
      

            	
              5.

            	
              Upon
      the Commissioner's determination, termination is in the best interest of
      the City.

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      Department or City shall give the Consultant written notice of any
      termination of this Agreement specifying therein the applicable provisions
      of subsection A of this section and the effective date thereof which shall
      not be less than ten (10) days from the date the notice is
      received.

            

    

     

    
      	
               
      

            	
              C.

            	
              The
      Consultant shall be entitled to apply to the Department to have this
      Agreement terminated by said Department by reason of any failure in the
      performance of this Agreement (including any failure by the Consultant to
      make progress in the prosecution of work hereunder which endangers such
      performance), if such failure arises out of causes beyond the control and
      without the fault or negligence of the Consultant.  Such causes
      may include, but are not restricted to:  acts of God or of the
      public enemy; acts of the Government in either its sovereign or
      contractual capacity; fire, floods; epidemics; quarantine restrictions;
      strikes; freight embargoes; or any other case beyond the reasonable
      control of the Consultant.  The determination that such failure
      arises out of causes beyond the control and without the fault or
      negligence of the Consultant shall be made by the Department which agrees
      to exercise reasonable judgment therein. If such a determination is made
      and the Agreement terminated by the Department pursuant to such
      application by the Consultant, such termination shall be deemed to be
      without cause.

            

    

     

    
      	
               
      

            	
              D.

            	
              Upon
      termination of this Agreement the Consultant shall comply with the
      Department or City close-out procedures, including but not limited
      to:

            

    

     

    
      	
               
      

            	
              1.

            	
              Accounting
      for and refund to the Department or City, within thirty (30) days, any
      unexpended funds which have been paid to the Consultant pursuant to this
      Agreement.

            

    

     

    
      	
               
      

            	
              2.

            	
              Furnishing
      with thirty (30) days an inventory to the Department or City of all
      equipment, appurtenances and property purchased through or provided under
      this Agreement carrying out any Department or City directive concerning
      the disposition thereof.

            

    

     

    
      	
               
      

            	
              3.

            	
              Not
      incurring or paying any further obligation pursuant to this Agreement
      beyond the termination date.  Any obligation necessarily
      incurred by the Consultant on account of this Agreement prior to receipt
      of notice of termination and falling due after such date shall be paid by
      the Department or City in accordance with the terms of this
      Agreement.  In no event shall the “obligation”, as used herein,
      be construed as including any lease agreement, oral or written, entered
      into between the Consultant and its
landlord.

            

    

     

    
      
        
        

      

      
        GP-16

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              4.

            	
              Turn
      over to the Department or City or its designees all books, records,
      documents and material specifically relating to this
      Agreement.

            

    

     

    
      	
               
      

            	
              5.

            	
              Submit,
      within ninety (90) days, a final statement and report relating to the
      Agreement.  The report shall be made by a certified public
      accountant or a licensed public
accountant.

            

    

     

    
      	
               
      

            	
              E.

            	
              In
      the event the Department or City shall terminate this Agreement, in whole
      or in part, as provided in paragraphs 1, 2, 3, or 4 of subsection A of
      this section, the Department or City may procure, upon such terms and in
      such manner as deemed appropriate, services similar to those so
      terminated, and the Consultant shall continue to performance of this
      Agreement to the extent not terminated
hereby.

            

    

     

    
      	
               
      

            	
              F.

            	
              Notwithstanding
      any other provisions of this contract, the Consultant shall not be
      relieved of liability to the City for damages sustained by the City by
      virtue of Consultant's breach of the contract, and the City may withhold
      payments to the Consultant for the purpose of set-off until such time as
      to the exact amount of damages due to the City from the Consultant is
      determined.

            

    

     

    
      	
               
      

            	
              G.

            	
              The
      provisions of the Agreement regarding confidentiality of information shall
      remain in full force and effect following any
  termination.

            

    

     

    
      	
               
      

            	
              H.

            	
              The
      rights and remedies of the City provided in this section shall not be
      exclusive and are in addition to all other rights and remedies provided by
      law or under this Agreement.

            

    

     

    ARTICLE 6. CLAIMS, WAIVER,
ETC.

     

    
      	
              6.1

            	
              CONFLICT OF
      LAWS

            

    

     

    All
disputes arising out of this Agreement shall be interpreted and decided in
accordance with the laws of the State of New York.

     

    
      
        
        

      

      
        GP-17

        
          

        

      

      
        
        

      

    

    
      Contract
No. PO-98B

       

       

    

    
      	
              6.2

            	
              GENERAL
      RELEASE

            

    

     

    The
acceptance by the Consultant or its assignees of the final payment under this
contract, whether by voucher, judgment of any court of competent jurisdiction or
any other administrative means, shall constitute and operate as a general
release to the City from any and all claims of and liability to the Consultant
arising out of the performance of this contract.

     

    
      	
              6.3

            	
              CLAIMS AND ACTIONS
      THEREON

            

    

     

    
      	
               
      

            	
              A.

            	
              No
      action at law or proceeding in equity against the City or Department shall
      lie or be maintained upon any claim based upon this Agreement or arising
      out of this Agreement or in any way connected with this Agreement unless
      the Consultant shall have strictly complied with all requirements relating
      to the giving of notice and of information with respect to such claims,
      all as herein provided.

            

    

     

    
      	
               
      

            	
              B.

            	
              No
      action shall lie or be maintained against the City by Consultant upon any
      claims based upon this Agreement unless such action shall be commenced
      within six (6) months after the date of filing in the Office of the
      Comptroller of the City of the certificate for the final payment
      hereunder, or within six (6) months of the termination or conclusion of
      this Agreement, or within six (6) months after the accrual of the Cause of
      Action, whichever first occurs.

            

    

     

    
      	
               
      

            	
              C.

            	
              In
      the event any claim is made or any action brought in any way relating to
      the Agreement herein, the Consultant shall diligently render to the
      Department and/or the City of New York without additional compensation any
      and all assistance which the Department and/or the City of New York may
      require of the Consultant.

            

    

     

    
      	
               
      

            	
              D.

            	
              The
      Consultant shall report to the Department in writing within three (3)
      working days of the initiation by or against the Consultant of any legal
      action or proceeding in connection with or relating to this
      Agreement.

            

    

     

    
      	
              6.4

            	
              NO CLAIM AGAINST
      OFFICERS, AGENTS OR
EMPLOYEES

            

    

     

    No claim
whatsoever shall be made by the Consultant against any officer, agent or
employee of the City for, or on account of, anything done or omitted in
connection with this contract.

     

    
      	
              6.5

            	
              WAIVER

            

    

     

    Waiver by
the Department of a breach of any provision of this Agreement shall not be
deemed to be a waiver of any other or subsequent breach and shall not be
construed to be a modification of the terms of the Agreement unless and until
the same shall be agreed to in writing by the Department or City as required and
attached to the original Agreement.

     

    
      
        
        

      

      
        GP-18

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              6.6

            	
              NOTICE

            

    

     

    The
Consultant and the Department hereby designate the business addresses
hereinabove specified as the places where all notices, directions or
communications from one such party to the other party shall be delivered, or to
which they shall be mailed.  Actual delivery of any such notice,
direction or communication to a party at the aforesaid place, or delivery by
certified mail shall be conclusive and deemed to be sufficient service thereof
upon such party as of the date such notice, direction or communication is
received by the party.  Such address may be changed at any time by an
instrument in writing executed and acknowledged by the party making such change
and delivered to the other party in the manner as specified
above.  Nothing in this section shall be deemed to serve as a waiver
of any requirements for the service of notice of process in the institution of
an action or proceeding as provided by law, including the Civil Practice Law and
Rules.

     

    
      	
              6.7

            	
              ALL LEGAL PROVISIONS
      DEEMED INCLUDED

            

    

     

    It is the
intent and understanding of the parties to this Agreement that each and every
provision of law required to be inserted in this Agreement shall be and is
inserted herein.  Furthermore, it is hereby stipulated that every such
provision is to be deemed to be inserted herein, and if, through mistake or
otherwise, any such provision is not inserted, or is not inserted in correct
form, then this Agreement shall forthwith upon the application of either party
be amended by such insertion so as to comply strictly with the law and without
prejudice to the rights of either party hereunder.

     

    
      	
              6.8

            	
              SEVERABILITY

            

    

     

    If this
Agreement contains any unlawful provision not an essential part of the Agreement
and which shall not appear to have been a controlling or material inducement to
the making thereof, the same shall be deemed of no effect and shall upon notice
by either party, be deemed stricken from the Agreement without affecting the
binding force of the remainder.

     

    
      	
              6.9

            	
              POLITICAL
      ACTIVITY

            

    

     

    There
shall be no partisan political activity or any activity to further the election
or defeat of any candidate for public, political or party office as part of or
in connection with this Agreement, nor shall any of the funds provided under
this Agreement be used for such purposes.

     

    
      	
              6.10

            	
              MODIFICATION

            

    

     

    This
Agreement may be modified by the parties in writing in a manner not materially
affecting the substance hereof.  It may not be altered or modified
orally.

     

    
      
        
        

      

      
        GP-19

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              6.11

            	
              PARAGRAPH
      HEADINGS

            

    

     

    Paragraph
headings are inserted only as a matter of convenience and for reference and in
no way define, limit or describe the scope or intent of this contract and in no
way affect this contract.

     

    
      	
              6.12

            	
              NO REMOVAL OF RECORDS
      FROM PREMISES

            

    

     

    Where
performance of this Agreement involves use by the Consultant of Department
papers, files, data or records at Departmental facilities or offices, the
Consultant shall not remove any such papers, files, data or records, therefrom
without the prior approval of the Department's designated official.

     

    
      	
              6.13

            	
              INSPECTION AT
      SITE

            

    

     

    The
Department shall have the right to have representatives of the Department or of
the City or of the State or Federal governments present at the site of the
engagement to observe the work being performed.

     

    ARTICLE
7.  MERGER

     

    This
written Agreement contains all the terms and conditions agreed upon by the
parties hereto, and no other agreement, oral or otherwise, regarding the subject
matter of this Agreement shall be deemed to exist or to bind any of the parties
hereto, or to vary any of the terms contained herein.

     

    ARTICLE
8.  CONDITIONS PRECEDENT

     

    This
contract shall neither be binding nor effective unless:

     

    
      	
               
      

            	
              (a)

            	
              Approved
      by the Mayor pursuant to the provisions of Executive Order No. 42, dated
      October 9, 1975, in the event the Executive Order requires such approval;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              Certified
      by the Mayor (Mayor's Fiscal Committee created pursuant to Executive Order
      No. 43, dated October 14, 1975) that performance thereof will be in
      accordance with the City's financial plan;
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Approved
      by the New York State Financial Control Board (Board) pursuant to the New
      York State Financial Emergency Act for the City of New York, as amended,
      (the “Act”), in the event regulations of the Board pursuant to the Act
      require such approval.

            

    

     

    
      	
               
      

            	
              (d)

            	
              It
      has been authorized by the Mayor and the Comptroller shall have endorsed
      his or her certificate that there remains unexpended and unapplied a
      balance of the appropriation of funds applicable thereto sufficient to pay
      the estimated expense of carrying out this
  Agreement.

            

    

     

    
      
        
        

      

      
        GP-20

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    The
requirements of this section of the contract shall be in addition to, and not in
lieu of, any approval or authorization otherwise required for this contract to
be effective and for the expenditure of City funds.

     

    ARTICLE
9.  PROCUREMENT POLICY BOARD RULES

     

    This
contract is subject to the Rules and the Procurement Policy Board of the City of
New York.   In the event of a conflict between and Rules and a
provision of this contract, the Rules shall take precedence.

     

    ARTICLE
10.  STATE LABOR LAW AND CITY ADMINISTRATIVE CODE

     

    
      	
              1.

            	
              As
      required by New York State Labor Law §
220-e:

            

    

     

    
      	
               
      

            	
              (a)

            	
              That
      in the hiring of employees for the performance of work under this contract
      or any subcontract hereunder, neither the Consultant, Subconsultant, nor
      any person acting on behalf of such Consultant or Subconsultant, 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;

            

    

     

    
      	
               
      

            	
              (b)

            	
              That
      neither the Consultant, Subconsultant, 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;

            

    

     

    
      	
               
      

            	
              (c)

            	
              That
      there may be deducted from the amount payable to the Consultant by the
      City under this contract a penalty of five dollars for each person for
      each calendar day during which such person was discriminated against or
      intimidated in violation of the provisions of this contract;
      and

            

    

     

    
      	
               
      

            	
              (d)

            	
              That
      this contract may be canceled or terminated by the City and all monies 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.

            

    

     

    
      	
               
      

            	
              (e)

            	
              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.

            

    

     

    
      	
              2.

            	
              As
      required by New York City Administrative Code §
  6-108

            

    

     

    
      	
               
      

            	
              (a)

            	
              It
      shall be unlawful for any person engaged in the construction, alteration
      or repair of buildings or engaged in the construction or repair of streets
      or highways pursuant to a contract with the City or engaged in the
      manufacture, sale or distribution of materials, equipment or supplies
      pursuant to a contract with the City to refuse to employ or to refuse to
      continue in any employment any person on account of the race, color or
      creed of such person.

            

    

     

    
      
        
        

      

      
        GP-21

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              (b)

            	
              It
      shall be unlawful for any person or any servant, agent or employee of any
      person, described in subdivision (a) above, to ask, indicate or transmit,
      orally or in writing, directly or indirectly, the race, color, creed or
      religious affiliation of any person employed or seeking employment from
      such person, firm or corporation.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Disobedience
      of the foregoing provisions shall be deemed a violation of a material
      provision of this contract.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Any
      person, or the employee, manager or owner of or officer of such firm or
      corporation who shall violate any of the provisions of this section shall,
      upon conviction thereof, be punished by a fine of not more than one
      hundred dollars or by imprisonment for not more than thirty days, or
      both.

            

    

     

    ARTICLE
11.  RESOLUTION OF DISPUTES

     

    1.           All
disputes between the City and the Consultant of the kind delineated in this
section that arise under, or by virtue of, this Contract shall be finally
resolved in accordance with the provisions of this section and Section 5-11 of
the Rules of the Procurement Policy Board ("PPB Rules").  The
procedure for resolving all disputes of the kind delineated herein shall be the
exclusive means of resolving any such disputes.

     

    (a)           This
section shall not apply to disputes concerning matters dealt with in other
sections of the PPB Rules or to disputes involving patents, copyrights,
trademarks, or trade secrets (as interpreted by the courts of New York State)
relating to proprietary rights in computer software.

     

    (b)           For
construction and construction-related services this section shall apply only to
disputes about the scope of work delineated by the contract, the interpretation
of contract documents, the amount to be paid for extra work or disputed work
performed in connection with the contract, the conformity of the Consultant's
work to the contract, and the acceptability and quality of the Consultant's
work; such disputes arise when the Engineer makes a determination with which the
Consultant disagrees.

     

    2.           All
determinations required by this section shall be clearly stated, with a reasoned
explanation for the determination based on the information and evidence
presented to the party making the determination.  Failure to make such
determination within the time required by this section shall be deemed a
non-determination without prejudice that will allow application to the next
level.

     

    3.           During
such time as any dispute is being presented, heard, and considered pursuant to
this section, the contract terms shall remain in full force and effect and the
Consultant shall continue to perform work in accordance with the contract and as
directed by the Agency Chief Contracting Officer ("ACCO") or
Engineer.  Failure of the Consultant to continue the work as directed
shall constitute a waiver by the Consultant of any and all claims being
presented pursuant to this section and a material breach of
contract.

     

    
      
        
        

      

      
        GP-22

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    4.           Presentation
of Dispute to Agency Head.

     

    (a)           Notice
of Dispute and Agency Response.  The Consultant shall present its
dispute in writing ("Notice of Dispute") to the Agency Head within the time
specified herein, or, if no time is specified, within thirty (30) days of
receiving written notice of the determination or action that is the subject of
the dispute.  This notice requirement shall not be read to replace any
other notice requirements contained in the contract.  The Notice of
Dispute shall include all the facts, evidence, documents, or other basis upon
which the Consultant relies in support of its position, as well as a detailed
computation demonstrating how any amount of money claimed by the Consultant in
the dispute was arrived at.  Within thirty (30) days after receipt of
the complete Notice of Dispute, the ACCO or, in the case of construction or
construction-related services, the Engineer, shall submit to the Agency Head all
materials he or she deems pertinent to the dispute. Following initial
submissions to the Agency Head, either party may demand of the other the
production of any document or other material the demanding party believes may be
relevant to the dispute. The requested party shall produce all relevant
materials that are not otherwise protected by a legal privilege recognized by
the courts of New York State.  Any question of relevancy shall be
determined by the Agency Head whose decision shall be final. Willful failure of
the Consultant to produce any requested material whose relevancy the Consultant
has not disputed, or whose relevancy has been affirmatively determined, shall
constitute a waiver by the Consultant of its claim.

     

    (b)           Agency
Head Inquiry.  The Agency Head shall examine the material and may, in
his or her discretion, convene an informal conference with the Consultant and
the ACCO and, in the case of construction or construction-related services, the
Engineer, to resolve the issue by mutual consent prior to reaching a
determination.  The Agency Head may seek such technical or other
expertise as he or she shall deem appropriate, including the use of neutral
mediators, and require any such additional material from either or both parties
as he or she deems fit.  The Agency Head's ability to render, and the
effect of, a decision hereunder shall not be impaired by any negotiations in
connection with the dispute presented, whether or not the Agency Head
participated therein.  The Agency Head may or, at the request of any
party to the dispute, shall compel the participation of any other Consultant
with a contract related to the work of this contract and that Consultant shall
be bound by the decision of the Agency Head.  Any Consultant thus
brought into the dispute resolution proceeding shall have the same rights and
obligations under this section as the Consultant initiating the
dispute.

     

    (c)           Agency
Head Determination.  Within thirty (30) days after the receipt of all
materials and information, or such longer time as may be agreed to by the
parties, the Agency Head shall make his or her determination and shall deliver
or send a copy of such determination to the Consultant and ACCO and, in the case
of construction or construction-related services, the Engineer, together with a
statement concerning how the decision may be appealed.

     

    (d)           Finality
of Agency Head Decision.  The Agency Head's decision shall be final
and binding on all parties, unless presented to the Contract Dispute Resolution
Board ("CDRB") pursuant to this section. The City may not take a petition to the
CDRB.  However, should the Consultant take such a petition, the City
may seek, and the CDRB may render, a determination less favorable to the
Consultant and more favorable to the City than the decision of the Agency
Head.

     

    
      
        
        

      

      
        GP-23

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    5.           Presentation
of Dispute to the Comptroller.  Before any dispute may be brought by
the Consultant to the CDRB, the Consultant must first present its claim to the
Comptroller for his or her review, investigation, and possible
adjustment.

     

    (a)           Time,
Form, and Content of Notice.  Within thirty (30) days of receipt of a
decision by the Agency Head, the Consultant shall submit to the Comptroller and
to the Agency Head a Notice of Claim regarding its dispute with the agency. The
Notice of Claim shall consist of (i) a brief statement of the substance of the
dispute, the amount of money, if any, claimed and the reason(s) the Consultant
contends the dispute was wrongly decided by the Agency Head; (ii) a copy of the
decision of the Agency Head, and (iii) a copy of all materials submitted by the
Consultant to the agency, including the Notice of Dispute.  The
Consultant may not present to the Comptroller any material not presented to the
Agency Head, except at the request of the Comptroller.

     

    (b)           Agency
Response.  Within thirty (30) days of receipt of the Notice of Claim,
the agency shall make available to the Comptroller a copy of all material
submitted by the agency to the Agency Head in connection with the
dispute.  The agency may not present to the Comptroller any material
not presented to the Agency Head, except at the request of the
Comptroller.

     

    (c)           Comptroller
Investigation.  The Comptroller may investigate the claim in dispute
and, in the course of such investigation, may exercise all powers provided in
sections 7-201 and 7-203 of the New York City Administrative Code.  In
addition, the Comptroller may demand of either party, and such party shall
provide, whatever additional material the Comptroller deems pertinent to the
claim, including original business records of the Consultant.  Willful
failure of the Consultant to produce within fifteen (15) days any material
requested by the Comptroller shall constitute a waiver by the Consultant of its
claim.  The Comptroller may also schedule an informal conference to be
attended by the Consultant, agency representatives, and any other personnel
desired by the Comptroller.

     

    (d)           Opportunity
of Comptroller to Compromise or Adjust Claim.  The Comptroller shall
have forty-five (45) days from his or her receipt of all materials referred to
in 5(c) to investigate the disputed claim.  The period for
investigation and compromise may be further extended by agreement between the
Consultant and the Comptroller, to a maximum of ninety (90) days from the
Comptroller's receipt of all the materials.  The Consultant may not
present its petition to the CDRB until the period for investigation and
compromise delineated in this paragraph has expired.  In compromising
or adjusting any claim hereunder, the Comptroller may not revise or disregard
the terms of the contract between the parties.

     

    (6)           Contract
Dispute Resolution Board.  There shall be a Contract Dispute
Resolution Board composed of:

     

    (a)           the
chief administrative law judge of the Office of Administrative
Trials  and Hearings ("OATH") or his/her designated OATH
administrative law judge, who shall act as chairperson, and may adopt
operational procedures and issue such orders consistent with this section as may
be necessary in the execution of the CDRB’s functions, including, but not
limited to, granting extensions of time to present or respond to
submissions;

     

    
      
        
        

      

      
        GP-24

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    (b)           the
City Chief Procurement Officer ("CCPO") or his/her designee, or in the case of
disputes involving construction, the Director of the Office of Construction or
his/her designee; any designee shall have the requisite background to consider
and resolve the merits of the dispute and shall not have participated personally
and substantially in the particular matter that is the subject of the dispute or
report to anyone who so participated , and

     

    (c)           a
person with appropriate expertise who is not an employee of the
City.  This person shall be selected by the presiding administrative
law judge from a prequalified panel of individuals, established and administered
by OATH, with appropriate background to act as decision-makers in a
dispute.  Such individuals may not have a contract or dispute with the
City or be an officer or employee of any company or organization that does, or
regularly represent persons, companies, or organizations having disputes with
the City.

     

    (7)           Petition
to CDRB.  In the event the claim has not been settled or adjusted by
the Comptroller within the period provided in this section, the Consultant,
within thirty (30) days thereafter, may petition the CDRB to review the Agency
Head determination.

     

    (a)           Form
and Content of Petition by Consultant.  The Consultant shall present
its dispute to the CDRB in the form of a Petition, which shall include (i) a
brief statement of the substance of the dispute, the amount of money, if any,
claimed, and the reason(s) the Consultant contends that the dispute was wrongly
decided by the Agency Head; (ii) a copy of the decision of the Agency Head;
(iii) copies of all materials submitted by the Consultant to the agency; (iv) a
copy of the decision of the Comptroller, if any, and (v) copies of all
correspondence with, and material submitted by the Consultant to, the
Comptroller’s Office.  The Consultant shall concurrently submit four
complete sets of the Petition: one to the Corporation Counsel (Attn: Commercial
and Real Estate Litigation Division), and three to the CDRB at OATH’s offices,
with proof of service on the Corporation Counsel. In addition, the Consultant
shall submit a copy of the statement of the substance of the dispute, cited in
(i) above, to both the Agency Head and the Comptroller.

     

    (b)           Agency
Response. Within thirty (30) days of receipt of the Petition by the Corporation
Counsel, the agency shall respond to the statement of the Consultant and make
available to the CDRB all material it submitted to the Agency Head and
Comptroller. Three complete copies of the agency response shall be submitted to
the CDRB at OATH’s offices and one to the Consultant.  Extensions of
time for submittal of the agency response shall be given as necessary upon a
showing of good cause or, upon the consent of the parties, for an initial period
of up to thirty (30) days.

     

    (c)           Further
Proceedings.  The Board shall permit the Consultant to present its
case by submission of memoranda, briefs, and oral argument. The Board shall also
permit the agency to present its case in response to the Consultant by
submission of memoranda, briefs, and oral argument.  If requested by
the Corporation Counsel, the Comptroller shall provide reasonable assistance in
the preparation of the agency's case.  Neither the Consultant nor the
agency may support its case with any documentation or other material that was
not considered by the Comptroller, unless requested by the CDRB.  The
CDRB, in its discretion, may seek such technical or other expert advice as it
shall deem appropriate and may seek, on it own or upon application of a party,
any such additional material from any party as it deems fit. The CDRB, in its
discretion, may combine more than one dispute between the parties for concurrent
resolution.

     

    
      
        
        

      

      
        GP-25

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    (d)           CDRB
Determination.  Within forty-five (45) days of the conclusion of all
submissions and oral arguments, the CDRB shall render a decision resolving the
dispute.  In an unusually complex case, the CDRB may render its
decision in a longer period of time, not to exceed ninety (90) days, and shall
so advise the parties at the commencement of this period.  The CDRB’s
decision must be consistent with the terms of the contract.  Decisions
of the CDRB shall only resolve matters before the CDRB and shall not have
precedential effect with respect to matters not before the CDRB.

     

    (e)           Notification
of CDRB Decision.  The CDRB shall send a copy of its decision to the
Consultant, the ACCO, the Corporation Counsel, the Comptroller, the CCPO, the
Office of Construction, the PPB, and, in the case of construction or
construction-related services, the Engineer. A decision in favor of the
Consultant shall be subject to the prompt payment provisions of the PPB Rules.
The Required Payment Date shall be thirty (30) days after the date the parties
are formally notified of the CDRB’s decision.

     

    (f)           Finality
of CDRB Decision. The CDRB’s decision shall be final and binding on all
parties.  Any party may seek review of the CDRB’s decision solely in
the form of a challenge, filed within four months of the date of the CDRB’s
decision, in a court of competent jurisdiction of the State of New York, County
of New York pursuant to Article 78 of the Civil Practice Law and
Rules.  Such review by the court shall be limited to the question of
whether or not the CDRB’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 proceeding that was not presented to the CDRB in accordance with
Section 5-11 of the PPB Rules.

     

    (8)           Any
termination, cancellation, or alleged breach of the contract prior to or during
the pendency of any proceedings pursuant to this section shall not affect or
impair the ability of the Agency Head or CDRB to make a binding and final
decision pursuant to this section.

     

    
      
        
        

      

      
        GP-26

        
          

        

      

      
        
        

      

    

    
      Contract
No. PO-98B

       

       

    

    ARTICLE
12.  CONTRACT CHANGES

     

    Changes
may be made to this contract only as duly authorized by the Agency Chief
Contracting Officer or the Agency Chief Contracting Officer’s designee.
Consultants deviating from the requirements of an original purchase order or
contract without a duly approved change order, do so at their own
risk.  All such changes, modifications and amendments will become a
part of the original contract.

     

    Contract
changes will be made only for work necessary to complete the work included in
the original scope of the contract, and for non-material changes to the scope of
the contract.  Changes are not permitted for any material alteration
in the scope of the work.

     

    Changes
may include any one or more of the following:

     

    
      	
               
      

            	
              

            	
              Specification
      changes to account for design errors or
  omissions;

            

    

    

    
      	
               
      

            	
              

            	
              Changes
      in contract amount due to authorized additional or omitted work. Any such
      changes require appropriate price and cost analysis to determine
      reasonableness.  In addition, except for non-construction
      requirements contracts, all changes that cumulatively exceed the greater
      of ten percent of the original contract amount or $100,000 shall be
      approved by the CCPO (for non-construction contracts) or the Director of
      the Office of Construction (for construction and construction-related
      contracts).

            

    

    

    
      	
               
      

            	
              

            	
              Extensions
      of a contract term for good and sufficient cause for a cumulative period
      not to exceed one year from the date of expiration of the current
      contract.  Requirements contracts shall be subject to this
      limitation;

            

    

    

    
      	
               
      

            	
              

            	
              Changes
      in delivery location;

            

    

    

    
      	
               
      

            	
              

            	
              Changes
      in shipment method; and

            

    

    

    
      	
               
      

            	
              

            	
              Any
      other change not inconsistent with §5-02 the P.P.B. Rules (ed.
      9/99).

            

    

    

    The
Consultant may be entitled to a price adjustment for extra work performed or to
be performed pursuant to a written change order.  If any part of the
contract work is necessarily delayed by a change order, the Consultant may be
entitled to an extension to time for performance.  Adjustments to
price shall be validated for reasonableness by using appropriate price and cost
analysis.

    

    ARTICLE
13.  EXTENSION OF TIME

     

    Upon
written application by the Consultant, the Agency Chief Contracting Officer may
grant an extension of time for the performance of the Agreement.  Said
application must state, at a minimum, in detail, each cause for delay, the date
the cause of the alleged delay occurred, and the total length of the delay in
days attributable to such cause.  The ruling of the Agency Chief
Contracting Officer shall be final and binding as to the allowance of an
extension and the number of days allowed.

     

    
      
        
        

      

      
        GP-27

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    ARTICLE
14.  CHOICE OF LAW, CONSENT TO JURISDICTION AND
VENUEFORUM  PROVISION

     

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

     

    The
parties agree that any and all claims asserted by or against the City arising
under this Contract or related thereto shall be heard and determined either in
the courts of the United States located in New York City (“Federal Court”) or in
the courts of the State of New York (“New York State Courts”) located in the
City and County of New York.  To effect this Agreement and intent, the
Consultant agrees:

     

    
      	
               
      

            	
              (a)

            	
              If
      the City initiates any action against the Consultant in Federal Court or
      in New York State Court, service of process may be made on the Consultant
      either in person, wherever such Consultant may be found, or by registered
      mail addressed to the Consultant at its address as set forth in this
      Contract, or to such other address as the Consultant may provide to the
      City in writing; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              With
      respect to any action between the City and the Consultant in New York
      State Court, the Consultant hereby expressly waives and relinquishes any
      rights it might otherwise have (i) to move to dismiss on grounds of forum non conveniens;
      (ii) to remove to Federal Court; and (ii) to move for a change of venue to
      a New York State Court outside New York
County.

            

    

     

    
      	
               
      

            	
              (c)

            	
              With
      respect to any action between the City and the Consultant in Federal Court
      located in New York City, the Consultant expressly waives and relinquishes
      any right it might otherwise have to move to transfer the action to a
      United States Court outside the City of New
  York.

            

    

     

    
      	
               
      

            	
              (d)

            	
              If
      the Consultant commences any action against the City in a court located
      other than in the City and State of New York, upon request of the City,
      the Consultant shall either consent to a transfer of the action to a court
      of competent jurisdiction located in the City and State of New York or, if
      the court where the action is initially brought will not or cannot
      transfer the action, the Consultant shall consent to dismiss such action
      without prejudice and may thereafter reinstate the action in a court of
      competent jurisdiction in New York
City.

            

    

     

    If any
provision(s) of this Article is held unenforceable for any reason, each and all
other provision(s) shall nevertheless remain in full force and
effect.

     

    
      
        
        

      

      
        GP-28

        
          

        

      

      
        
        

      

    

    
      Contract
No. PO-98B

       

       

    

    ARTICLE
15.  PROMPT PAYMENT

     

    All
payments to the Consultant shall be made in accordance with the Prompt Payment
provisions set forth in the Procurement Policy Board Rules.

     

    ARTICLE
16.  E.O. 50 - EQUAL EMPLOYMENT OPPORTUNITY

     

    This
contract is subject to the requirements of Executive Order No. 50 (1980) as
revised (“E.O. 50”) and the Rules and Regulations promulgated
thereunder.  No contract will be awarded unless and until these
requirements have been complied with in their entirety.  By signing
this contract, the consultant agrees that it:

     

    
      	
               
      

            	
              (1)

            	
              will
      not engage in any unlawful discrimination against any employee or
      applicant for employment because of race, creed, color, national origin,
      sex, age, disability, marital status or sexual orientation with respect to
      all employment decisions including, but not limited to, recruitment,
      hiring, upgrading, demotion, downgrading, transfer, training, rates of pay
      or other forms of compensation, layoff, termination, and all other terms
      and conditions of employment;

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      consultant agrees that when it subcontracts it will not engage in any
      unlawful discrimination in the selection of subconsultants on the basis of
      the owner’s race, color, creed, national origin, sex, age, disability,
      marital status or sexual
orientation;

            

    

     

    
      	
               
      

            	
              (3)

            	
              will
      state in all solicitations or advertisements for employees placed by or on
      behalf of the consultant that all qualified applicants will receive
      consideration for employment without unlawful discrimination based on
      race, creed, color, national origin, sex, age, disability, marital status
      or sexual orientation, or that it is an equal employment opportunity
      employer;

            

    

     

    
      	
               
      

            	
              (4)

            	
              will
      send to each labor organization or representative of workers with which it
      has a collective bargaining agreement or other contract or memorandum of
      understanding, written notification of its equal employment opportunity
      commitments under E.O. 50 and the rules and regulations promulgated
      thereunder; and

            

    

     

    
      	
               
      

            	
              (5)

            	
              will
      furnish all information and reports including an Employment Report before
      the award of the contract which are required by E.O. 50, the rules and
      regulations promulgated thereunder, and orders of the Director of the
      Bureau of Labor Services (“Bureau”), and will permit access to its books,
      records and accounts by the Bureau for the purposes of investigation to
      ascertain compliance with such rules, regulations, and
    orders.

            

    

     

    The
consultant understands that in the event of its noncompliance with
nondiscrimination clauses of this contract or with any of such rules,
regulations, or orders, such noncompliance shall constitute a material breach of
the contract and noncompliance with the E.O. 50 and the rules and regulations
promulgated thereunder.  After a hearing held pursuant to the rules of
the Bureau, the Director may direct the imposition by the contracting agency
held of any or all of the following sanctions:

     

    
      
        
        

      

      
        GP-29

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
            	
              (i) 

            	
              disapproval
      of the consultant;

            

    

    
      	
               
      

            	
              (ii)

            	
              suspension
      or termination of the contract;

            

    

    
      	
               
      

            	
              (iii)

            	
              declaring
      the consultant in default; or

            

    

    
      	
               
      

            	
              (iv)

            	
              in
      lieu of any of the foregoing sanctions, the Director may impose an
      employment program.

            

    

    The
Director of the Bureau may recommend to the contracting agency head that a Board
of Responsibility be convened for purposes of declaring a consultant who has
repeatedly failed to comply with E.O. 50 and the rules and regulations
promulgated thereunder to be non-responsible.

     

    The
consultant agrees to include the provisions of the foregoing paragraphs in every
subcontract or purchase order in excess of $50,000 to which it becomes a party
unless exempted by E.O. 50 and the rules and regulations promulgated thereunder,
so that such provisions will be binding upon each subconsultant or
vendor.  The consultant will take such action with respect to any
subcontract or purchase order as may be directed by the Director of the Bureau
of Labor Services as a means of enforcing such provisions including sanctions
for noncompliance.

     

    The
consultant further agrees that it will refrain from entering into any contract
or contract modification subject to E.O. 50 and the rules and regulations
promulgated thereunder with a subconsultant who is not in compliance with the
requirements of E.O. 50 and the rules and regulations promulgated
thereunder.

     

    ARTICLE 17. CONTRACT
PERFORMANCE EVALUATION

     

    The
Consultant’s performance shall be evaluated by the City yearly, on the
anniversary of the commence work date, and upon Contract
completion.  A copy of the evaluation will be sent to the Consultant
not later than 15 calendar days after the occurrence of this event and the
Consultant may respond in writing to the performance report.  Such
response shall be submitted to the City not later than fifteen 15 calendar days
after a copy of the evaluation is sent to the Consultant.  The
response will be affixed to the evaluation.  Failure to respond may
result in review of the Consultant’s  performance when a
proposal is evaluated without the benefit of the
Consultant’s  response to the evaluation

     

    For each
contract with an original or amended term of greater than 12 months, the
Consultant's performance shall be evaluated by the City no later than 120 days
after the last day of each 12 month period following the Commence Work Date
(“interim evaluation”).  The Consultant’s performance shall
additionally be evaluated within no later than 120 days after  the
contract’s expiration, completion, or termination date (“final
evaluation”).  Where the interim and final evaluation are to be
performed within the same 120 day period, only the final evaluation need be
performed.  A copy of each evaluation will be sent to the Consultant
not later than 15 calendar days after the evaluation had been prepared, and
the  Consultant may respond in writing to the performance
evaluation.  Such responses shall be submitted to the Evaluator not
later than 15 calendar days after a copy of the evaluation is sent to the
Consultant.  The response will be affixed to the
evaluation.  Failure to respond to a less than satisfactory evaluation
may result in review of Consultant's performance when a bid is evaluated,
without the benefit of Consultant's response to the evaluation.

     

    
      
        
        

      

      
        GP-30

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    MACBRIDE
PRINCIPLES PROVISIONS FOR NEW YORK CITYCONTRACTORS/CONSULTANTS

     

    ARTICLE
I.  MACBRIDE PRINCIPLES

     

    NOTICE
TO ALL PROSPECTIVE CONTRACTORS/CONSULTANTS

     

    Local Law
No. 34 of 1991 became effective on September 10, 1991 and added section 6-115.1
to the Administrative Code of the City of New York.  The local law
provides for certain restrictions on City contracts to express the opposition of
the people of the City of New York to employment discrimination practices in
Northern Ireland and to encourage companies doing business in Northern Ireland
to promote freedom of work place opportunity.

     

    Pursuant
to Section 6-115.1, prospective Consultants for contracts to provide goods or
services involving an expenditure of an amount greater than ten thousand
dollars, or for construction involving an amount greater than fifteen thousand
dollars, are asked to sign a rider in which they covenant and represent, as a
material condition of their contract, that any business in Norther Ireland
operations conducted by the Consultant that holds a ten percent or greater
ownership interest in the Consultant will be conducted in accordance with the
MacBride Principles of nondiscrimination in employment.

     

    Prospective
Consultants are not required to agree to these conditions.  However,
in the case of contracts let by competitive sealed bidding, whenever the lowest
responsible bidder has not agreed to stipulate to the conditions set forth in
this section, and another bidder who has agreed to stipulate to such conditions
has submitted a bid within five percent of the lowest responsible bid for a
contract to supply goods, services or construction comparable quality, the
contracting entity shall refer such bids to the Mayor, the Speaker or other
officials, as appropriate who may determine, in accordance with applicable law
and rules, that it is in the best interest of the city that the contract be
awarded to other than the lowest responsible bidder pursuant to Section
313(b)(2) for the City Charter.

     

    In the
case of contracts let by other than competitive sealed bidding, if a prospective
Consultant does not agree to these conditions, no agency, elected official or
the Council shall award the contract to that bidder unless the entity seeking to
use the goods, services or construction certifies in writing that the contract
is necessary for the entity to perform its construction of comparable quality at
a comparable prices.

     

    PART A

     

    In
accordance with section 6-115.1 of the Administrative Code of the City of New
York, the Consultant and any individual or legal entity in which the Consultant
holds ten percent or grater ownership interest and any individual or legal
entity that holds a ten percent or greater ownership interest in the Consultant
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.

     

    
      
        
        

      

      
        GP-31

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    PART B

     

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

     

    
      	
              1.

            	
              “MacBride
      Principles” shall mean those principles relating to nondiscrimination in
      employment and freedom of work place opportunity which required employers
      doing business in Northern Ireland
to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              increase
      the representation of individuals from under represented 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
      under represented religious groups both at the work place and while
      traveling to and from work;

            

    

     

    
      	
               
      

            	
              (3)

            	
              ban
      provocative religious or political emblems from the work
      place;

            

    

     

    
      	
               
      

            	
              (4)

            	
              publicly
      advertise all job openings and make special recruitment efforts to attract
      applicants from under represented 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 under represented religious groups fro skilled jobs,
      including the expansion of existing programs and the creation of new
      programs to train, upgrade and improve the skills of workers from under
      represented religious groups;

            

    

     

    
      	
               
      

            	
              (8)

            	
              establish
      procedures to assess, identify and actively recruit employees from under
      represented 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
Consultant agrees that the covenants and representation in Article I above are
material conditions to this contract.  In the event the contracting
entity receives information that the Consultant who made the stipulation
required by this section is in violation thereof, the contracting entity shall
review such information and give the Consultant an opportunity to
respond.   If  the contracting entity finds that a
violation has occurred, the entity shall have the right to declare the
Consultant in default and/or terminate this contract for cause and procure the
supplies and services or work from another source in any manner the entity deems
proper.  In the event of such terminations, the Consultant shall pay
to the entity, or the entity in its sole discretion may withhold from any
amounts otherwise payable to the Consultant, 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 Consultant or Consultants.  In the case of a
requirements contract, the Consultant shall be liable for such differences 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
Consultant in partial or total default in accordance with the default provisions
of this contract, and/or may seek debarment or suspension of the
Consultant.  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.

     

    
      
        
        

      

      
        GP-32

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

      

       

    

    VOTER
REGISTRATION

     

    ARTICLE I. 
VOTER
REGISTRATION

     

    NOTICE TO ALL PROSPECTIVE
CONTRACTORS

     

    Local Law
No. 29 of 2000, effective August 23, 2000, added Section 1058 to the Charter of
the City of New York.  The local law provides for, among other things,
the distribution of voter registration forms by City Consultants, under certain
circumstances, in the performance of their services under City
agreements.  The
Department hereby provides fair notice to prospective Consultants that they may
be required to comply with the provisions of Section 1058 for contracts entered
into on or after August 23, 2000.

     

    As
detailed in Article I, Part A, below, Consultants (or subConsultants, as
appropriate), if they have regular contact with the public in the daily
administration of their business, shall be required to provide and distribute
voter registration forms to all persons together with written applications for
services, renewal or recertification for services and change of address relating
to such services, whether in person or through the United States mail, provided
that this requirement does not apply to services that must be provided to
prevent actual or potential danger to the life, health or safety of any
individual or of the public.  In addition, these Consultants shall
incorporate an opportunity to request a voter registration application into any
application for services, renewal or recertification for services and change of
address relating to such services provided on computer terminals, the World Wide
Web or the Internet.  In response to such request, these Consultants
must send a voter registration form to the person requesting it, or direct that
person to where the form may be downloaded.

     

    As
detailed in Article I, Part B, Consultants or subConsultants may also provide
certain other services related to voter registration.  Specifically,
these Consultants may provide assistance to applicants in completing voter
registration forms, and may receive and transmit completed forms for transmittal
to the New York City Board of Elections.

     

    As
detailed in Article I, Part C, Section 1058 bars Consultants from taking certain
actions, such as seeking to influence an applicant’s political preference or
party designation, displaying any political preference or party allegiance,
making any statement to an applicant or taking any action the purpose or effect
of which is to discourage the applicant form registering to vote, or making any
statement to an applicant or taking any action the purpose or effect of which is
to lead the applicant to believe that a decision to register or not register has
any bearing on the availability of services or benefits.

     

    
      
        
        

      

      
        GP-33

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    PART A

     

    In
accordance with Section 1058 of the Charter of the City of New York, the
Consultant, if a Consultant having regular contact with the public in the daily
administration of its business under this Agreement, hereby agrees as
follows:

     

    1.           The
Consultant shall provide and distribute voter registration forms to all persons
together with written applications for services, renewal or recertification for
services and change of address relating to such services.  Such voter
registration forms shall be provided to the Consultant by the
City.  The Consultant should be prepared to provide forms written in
Spanish or Chinese, and shall obtain a sufficient supply of such forms from the
City.

     

    2.           The
Consultant shall also include a voter registration form with any Consultant
communication sent through the United States mail for the purpose of supplying
clients with application, renewal or recertification for services and change of
address relating to such services materials.  If forms written in
Spanish or Chinese are not provided in such mailing, the Consultant shall
provide such forms upon request.

     

    3.           The
Consultant shall, subject to approval by the Department, incorporate an
opportunity to request a voter registration application into any application for
services, renewal or recertification for services and change of address relating
to such services provided on computer terminals, the World Wide Web or the
Internet.  Any person indicating that they wish to be sent a voter
registration form, via computer terminals, the World Wide Web or the Internet
shall be sent such a form by the Consultant or be directed, in a manner subject
to approval by the Department, to a bank on that system where such a form may be
downloaded.

     

    4.           The
Consultant shall, at the earliest practicable or next regularly scheduled
printing of its own forms, subject to approval by the Department, physically
incorporate the voter registration forms with its own application forms in a
manner that permits the voter registration portion to be detached
therefrom.  Until such time when the Consultant amends its form, the
Consultant should affix or include a postage paid New York City Board of
Elections voter registration form to or with its application, renewal,
recertification and change of address forms.

     

    5.           The
Consultant shall prominently display in its public office, subject to approval
by the Department, promotional materials designed and approved by the New York
City or New York State Board of Elections.

     

    6.           For
the purposes of Part A, the word “Consultant” shall be deemed to include
subConsultants having regular contract with the public in the daily
administration of their business.

     

    
      
        
        

      

      
        GP-34

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    7.           The
provisions of Part A shall not apply to services that must be provided to
prevent actual or potential danger to life, health or safety of any individual
or of the public.

     

    PART B

     

    In
accordance with Section 1058 of the Charter of the City of New York, the
Consultant hereby agrees as follows:

     

    1.           In
the event the Department provides assistance in completing distributed voter
registration forms, the Consultant shall also provide such assistance, in the
manner and to the extent specified by the Department.

     

    2.           In
the event the Department receives and transmits completed registration forms
from applicants who wish to have the forms transmitted to the New York City
Board of Elections, the Consultant shall similarly provide such service, in the
manner and to the extent specified by the Department.

     

    3.           If,
in connection with the provision of services under this Agreement, the
Consultant intends to provide assistance in completing distributed voter
registration forms or to receive and transmit completed registration forms from
applicants who wish to have the forms transmitted to the New York City Board of
Elections, the Consultant shall do so only by prior arrangement with the
Department.

     

    4.           The
provision of Part B services by the Consultant may be subject to Department
protocols, including one on confidentiality.

     

    PART C

     

    In
accordance with Section 1058 of the Charter of the City of New York, the
Consultant hereby agrees as follows:

     

    1.           The
Consultant shall advise all persons seeking voter registration forms and
information, in writing together with other written materials provided by the
Consultant or by appropriate publicity, that the Consultant’s or government
services are not conditioned on being registered to vote.

     

    2.           No
statement shall be made and no action shall be taken by the Consultant or an
employee of the Consultant to discourage an applicant from registering to vote
or to encourage or discourage an applicant from enrolling in any particular
political party.

     

    3.           The
Consultant shall communicate to applicants that the completion of voter
registration forms is voluntary.

     

    4.           The
Consultant and the Consultant’s employees shall not:

     

    (a)           seek
to influence an applicant’s political preference or party
designation;

     

    
      
        
        

      

      
        GP-35

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    (b)           display
any political preference or party allegiance;

     

    (c)           make
any statement to an applicant or take any action the purpose or effect of which
is to discourage the applicant from registering to vote; or

     

    (d)           make
any statement to an applicant or take any action the purpose or effect of which
is to lead the applicant to believe that a decision to register or not to
register has any bearing on the availability of services or
benefits.

     

    ARTICLE II. 
ENFORCEMENT OF ARTICLE
I

     

    The
Consultant, as defined above and in this Agreement, agrees that the covenants
and representations in Article I are material conditions of this
Agreement.  In the event the Department receives information that the
Consultant is in violation of the provisions of Article I, the Department shall
review such information and give the Consultant an opportunity to
respond.  If the Department finds that a violation has occurred, the
Department shall have the right to terminate this Agreement and procure the
services or work from another source in any manner the Department deems
proper.  In the event of such termination, the Consultant shall pay to
the Department, or the Department in its sole discretion may withhold from any
amounts otherwise payable to the Consultant, the difference between the contract
price for the uncompleted portion of this Agreement and the cost to the
Department of completing performance of this Agreement either itself or by
engaging another Consultant or Consultants.

     

    
      
        
        

      

      
        GP-36

        
          

        

      

      
        
        

      

    

    
      Contract
No. PO-98B

       

    

     

    AFFIRMATION

     

    The undersigned proposer or bidder
affirms and declares that said proposer or bidder is not in arrears to the City
of New York upon debt, contract or taxes and is not a defaulter, as surety or
otherwise, upon 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 proposer or bidder to receive public contracts except  .

     

    Full name
of Proposer or Bidder ThermoEnergy
Corporation

     

    Address
124 West Capitol
Street, Suite 880

     

    City           Little
Rock                      State
Arkansas                      
Zip Code 72201

     

    CHECK ONE
BOX AND INCLUDE APPROPRIATE NUMBER:

    
      	
              q

            	
              A

            	
              -

            	
              Individual
      or Sole Proprietorship*

            

    

    SOCIAL
SECURITY NUMBER

     

    
      	
              q

            	
              B

            	
              -

            	
              Partnership,
      Joint Venture or other unincorporated
  organization

            

    

    EMPLOYER IDENTIFICATION
NUMBER

     

    
      	
              q

            	
              C

            	
              -

            	
              Corporation

            

    

    EMPLOYER IDENTIFICATION
NUMBER         
 -             

     

    
      	
              By

            	
              _________________________

            

    

    Signature

    

    
       

      
        	
                 

              	
                _________________________

              

      

    

    Title

    

    If a
corporation place seal here

     

    Must be
signed by an officer or duly authorized representative.

     

    
      
        
        

      

      
        GP-37

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

      

    THE CITY
OF NEW YORK

    DEPARTMENT
OF ENVIRONMENTAL PROTECTION

    CONTRACT
NO. PO-98B

    REGISTRATION
NO.  ________

    

    

    

    

    For the
Services of

    THERMOENERGY
CORPORATION

    124 West
Capitol Street, Suite 880

    Little
Rock, Arkansas 72201

    

    

    

    ATTACHMENT
NO. 1

    SPECIFIC
REQUIREMENTS

    

    

    

    

    Ammonia
Removal Process System

    

    

    City of
New York

    Department
of Environmental Protection

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    TABLE
OF CONTENTS

     

    Page

    
    

     

    
      	
              1.

            	SCOPE OF WORK --
      UNDERSTANDING OF PROJECT	
              1

            
	 	 	 	 
	 	
              1.1

            	
              General

            	
              1

            
	 	 	 	 
	
              2.

            	DESCRIPTION OF
      PROCESS	
              3

            
	 	 	 	 
	
              3.

            	NOTIFICATION OF
      START OF WORK	
              3

            
	 	 	 	 
	
              4.

            	PHASE
      1:  DESIGN AND ENGINEERING	
              4

            
	 	 	 	 
	 	
              4.1

            	General	
              4

            
	 	
              4.2

            	Management/Coordination	
              4

            
	 	
              4.3

            	
              Planning

            	
              5

            
	 	
              4.4

            	Design	
              6

            
	 	 	 	 
	
              5.

            	PHASE 2 - ARP® SYSTEM EQUIPMENT
      SUPPLY AND INSTALLATION	
              9

            
	 	 	 	 
	 	
              5.1

            	Fabrication	9
	 	
              5.2

            	Installation	9
	 	
              5.3

            	Specifications	9
	 	
              5.4

            	Performance	10
	 	
              5.5

            	Substitution of
      Equipment	10
	 	
              5.6

            	Inspection	10
	 	
              5.7

            	Non-Delivery and
      Rejections	11
	 	
              5.8

            	Infringement –
      Vendor Warranty	12
	 	
              5.9

            	Company
      Warranty	12
	 	
              5.10

            	Start-up and Testing
      of System	13
	 	 	 	 
	
              6.

            	PHASE 3 - ARP® OPERATIONS	13
	 	 	 	 
	 	
              6.1

            	Monitoring	14
	 	
              6.2

            	Preparation of Color
      Flow Diagrams	14
	 	
              6.3

            	Preparation of
      Operations and Maintenance Manual	15
	 	
              6.4

            	Preparation of
      Standard Operating Procedures	15
	 	
              6.5

            	Training	15
	 	
              6.6

            	Coordination with
      City	16
	 	
              6.7

            	Operational
      Responsibilities of Company	16
	 	
              6.8

            	Byproduct
      Marketing	17
	 	
              6.9

            	Reagents	18
	 	
              6.10

            	Mitigation and
      Indemnification	18
	 	
              6.11

            	Operation and
      Maintenance Plan	18
	 	
              6.12

            	Health and Safety
      Plan (HASP)	19
	 	
              6.13

            	Hot Work
      Operations	20
	 	
              6.14

            	Emergency
    Plan	20

    

     

    
      
        
        

      

      
        - i
-

        
          

        

      

      
        
        

      

      
      

      
        
          Contract
No. PO-98B

           

           

        

      

      
        	 	
                6.15

              	Cleanup of
      Spills	
                21

              
	 	
                6.16

              	On-Site Chemical
      Storage Facility	21
	 	
                6.17

              	Reports	21
	 	 	 	 
	
                7.

              	RESPONSIBILITIES OF
      THE CITY	22

      

       

      
        
          
          

        

        
          - ii
-

          
            

          

        

        
          
          

        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    ATTACHMENT
NO. 1

     

    SPECIFIC
REQUIREMENTS

     

    
      	
              1.

            	
              SCOPE
      OF WORK -- UNDERSTANDING OF PROJECT

            

    

     

    The
overall goal of this Agreement is to provide the NYCDEP with Services related to
an Ammonia Recovery Process (ARP®) System at the 26th Ward WPCP, including
design and engineering services, procurement of equipment, and operating and
training services.

     

    
      	
              1.1

            	
              General

            

    

     

    The
NYCDEP has signed a Consent Decree setting specific nitrogen reduction discharge
levels for the Upper East River and Jamaica Bay.  As part of its
Nitrogen Removal Feasibility Plan, the City is looking for new nitrogen removal
methods that show great promise in meeting these nitrogen reduction goals at the
lowest cost to its ratepayers.  One such technology is the Company’s
Ammonia Recovery Process (ARP®).

     

    Based on
existing test data, the ARP®  appears to be an extremely cost
effective process for removing nitrogen from centrate, a highly concentrated
nitrogen stream derived from the sludge dewatering
process.  Therefore,  the City desires to implement the
Project, utilizing the ARP®, at the 26th Ward WPCP.

     

    The
Company shall assume certain responsibility for the implementation of the
ARP®  System Project as described in this Agreement.  These
responsibilities are set forth in this Agreement and include responsibilities
related to engineering, preparation of biddable plans and specifications,
design, permitting, public participation, public education, study work,
environmental reviews, testing, operation, training, maintenance and
transportation.

     

    The
Company shall operate and maintain the System, and shall have responsibilities
with respect to the storage/transshipment, and handling, marketing and
distribution of certain materials.  The Company shall coordinate
activities at the System with the City and the operators of the 26th Ward
WPCP.

     

    The
Company shall be responsible for assisting the NYCDEP in securing all licenses,
permits, notices and approvals required for the site preparation, design,
construction, operation and maintenance of the System and ancillary facilities,
including but not limited to, cranes, processing, storage/transshipment,
handling, marketing, and distribution facilities.

     

    The City
and the Company acknowledge that the ARP®  has not been proven on a
large scale basis.  The Company shall use good faith efforts to
operate and maintain the System in order to achieve the most favorable results
with respect to the removal of nitrogen from centrate.  As part of
such efforts, the Company shall use good faith efforts during the operational
period to maximize the productivity of the System.  The City and the
Company acknowledge that performance of the ARP®  will vary depending
on the incoming quality of the centrate.  The Company will guarantee
an effluent ammonia concentration of no more than 100 mg/l on a monthly average,
provided that the influent to the System meets the design parameters set forth
in Section 4.4 of these Specific Requirements.

     

    
      
        
        

      

      
        SR-1

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    Ammonium
measured as nitrogen plus or minus the accuracy of the test method (SM
18-B,C-NES).  The samples will be collected at the discharge of the
Ammonia Removal Systems by an Isco sampler. The sampler should obtain 48
sequential sub-samples for compositing at the rate of one sub-sample every 30
minutes.  The total volume of the sample shall be of sufficient size
to permit on-site analysis using SM NH3 C and
analysis by SM 18-B by a state certified laboratory of choice by the NYCDEP, and
analysis by C-NES by a state certified laboratory of choice by Company, and two
additional test volumes to be retained and stored in accordance with the
method.  The data obtained from the laboratory selected by the NYCDEP
shall be considered the official data and used to calculate the monthly
average.  The two retained sample volumes will be analyzed if the
NYCDEP laboratory sample exceeds 100 ppm and Company’s laboratory sample is less
than 100 ppm.  The average of the four samples will then be considered
the official sample.  Any sample that deviates from this average by
more than 10% shall be considered erroneous and rejected.  The average
will then be calculated from the remaining three samples, and this will be the
official sample.  Both Company and the NYCDEP may request a change in
Laboratories if either party can demonstrate inconsistent or erroneous data is
being produced, either Laboratory losses its’ state certification, or either
Laboratory fails to follow proper protocol.

     

    This
Agreement is for a full scale ARP® System capable of treating 1.2 MGD (total
volume of centrate produced daily at the 26th Ward
WPCP).  However, the ARP® System will lack full unit process
redundancy (i.e., the System will not have totally redundant process trains at
1.2 MGD).  The ARP® System is modular with two process trains each
capable of treating 600 thousand gallons per day.  Key components of
each process train have redundant equipment.  This allows simple
maintenance to be performed at the 1.2 MGD flow rate without reducing
flow.  For major maintenance, the duplex process trains will allow a
flow of 600 thousand gallons per day through one train while the other train is
shut down for maintenance.  However, this limited redundancy may
episodically prevent normal ARP®  System operations at the full flow
rate and therefore require that the untreated centrate be diverted to the
headworks of the existing plant.  In the event that the
ARP®  System does not achieve the full flow rate, the Company shall
use commercially reasonable efforts to perform corrective  maintenance
in order to cause the ARP®  System to re-achieve the full flow rate as
soon as possible.  Periodic system failures, above and beyond the
Company’s control will also affect the average monthly nitrogen removal
value.  The Company is not to be held liable and shall not be
financially penalized or impacted for the following:

     

    
      	
               
      

            	
              a.

            	
              Systems
      failures due to lack of equipment redundancy; provided that the Company
      exercises reasonable commercial efforts to perform corrective maintenance
      as soon as possible.  The loss of any primary unit operation
      component may result in temporary or extended system
      down-time.

            

    

     

    
      	
               
      

            	
              b.

            	
              Centrate
      volume or centrate flow from the existing dewatering facility above 1.2
      MGD.

            

    

     

    
      	
               
      

            	
              c.

            	
              Operational
      changes executed by the 26th Ward WPCP that will affect the
      ARP®  treatment process or the mechanics of the
      ARP®  treatment
equipment.

            

    

     

    
      	
               
      

            	
              d.

            	
              Union
      staffing issues, policies or practices (strike, other labor difficulty or
      labor shortage) that may result in work stoppages at the 26th
      Ward WPCP.

            

    

     

    
      
        
        

      

      
        SR-2

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              e.

            	
              Loss
      of public utilities such as electrical power, natural gas or potable water
      required to operate the
ARP®  System.

            

    

     

    
      	
               
      

            	
              f.

            	
              Centrate
      that is greater than the design concentration range of 0-800 PPM NH3-N
      average, 1130 PPM NH3 maximum, or is otherwise outside the parameters set
      forth in Section 4.4 of these Specific
  Requirements.

            

    

     

    
      	
               
      

            	
              g.

            	
              The
      Company shall not be liable for damages of any nature resulting from delay
      or failure of performance caused by any event beyond the reasonable
      control of Company, including but not limited to: accident; fire;
      explosion; flood; earthquake or adverse weather conditions; delay in
      transportation or lack of transportation facilities; and changes in
      federal, state, county or local government or governmental agency laws,
      rules, regulations, orders, proclamations, codes, decrees, or permit
      requirements, including judicial actions.  In case any delay is
      so caused, the Company shall have such additional time within which to
      perform as may be reasonably necessary under the
      circumstances.  In addition, to the extent any such event
      increases the Company’s cost of performance under this Agreement, then the
      Company shall be relieved from such performance unless the City agrees to
      pay such excess costs.

            

    

     

    
      	
               
      

            	
              h.

            	
              The
      water softeners are located after the DAF clarifiers and prior to pH
      adjustment.  Concentrations of coagulants that exceed the recommended
      stochiometric dosages posted in the centrifuge building by more than 25%
      will adversely affect the performance of the ARP® system and may impact
      the average monthly ammonia
removal.

            

    

     

    
      	
              2.

            	
              DESCRIPTION
      OF PROCESS

            

    

     

    The
Company’s proprietary ARP® system is a physical-chemical process that uses flash
vacuum distillation, ion exchange and pre-treatment technologies to reduce the
ammonia concentration in wastewater and recover ammonium
sulfate.  ARP®  does not produce the fugitive greenhouse gas
emissions inherent in biological nitrogen reduction processes. Since the ARP®
system uses controlled physical-chemical processes, it is not sensitive to
seasonal temperature fluctuation that can result in complete process upset or
reduced effectiveness of ABT/BNR alternative technologies. ARP® only operates
when centrate is produced.

     

    ARP®  systems
are enclosed, skid mounted process units, built at a factory, transported to the
site and set in place. They are then connected to tanks and utilities, ready for
operation.

     

    
      	
              3.

            	
              NOTIFICATION
      OF START OF WORK

            

    

     

    
      	
               
      

            	
              A.

            	
              At
      least 7 days in advance of its intention to start work, the Company shall
      notify the Engineer:

            

    

     

     Bureau
of Wastewater Treatment

     96-05
Horace Harding Expressway, 2nd Floor

     Corona,
NY  11368

     Phone:  (718)
595-5014

     Fax:  (718)
595-4953

     

    
      
        
        

      

      
        SR-3

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    Should
the work be halted for any reason, the Company is required to notify the
above-referenced office at least 48 hours in advance of its intention to resume
work.

     

    
      	
               
      

            	
              B.

            	
              At
      the start of each workday, each worker employed by or working on behalf of
      the Company shall report to the 26th
      Ward WPCP Office and shall sign in, and give his/her employee
      identification number.  At the end of the workday, each worker
      employed by or on behalf of the Company shall report to the 26th
      Ward WPCP office and sign out.  Copies of the plant sign-in
      sheets must be submitted to the Engineer with each partial payment
      request.  Failure to comply with these requirements will be
      reflected in the Company’s performance evaluation and may be reflected in
      the progress payments.

            

    

     

    
      	
               
      

            	
              C.

            	
              All
      employees or subcontractors of the Company shall display photo
      identification that indicates the company, the employee’s name and
      prevailing wage title.  The photo identification must be
      durable, retain its legibility, and be clearly displayed at all times when
      at the location.

            

    

     

    
      	
              4.

            	
              PHASE
      1:  DESIGN AND
ENGINEERING

            

    

     

    
      	
              4.1

            	
              General

            

    

     

    This
Phase is broken down into four components: Management/Coordination, Planning,
Design,  and Permitting.  The Company, either directly, or
through the use of subcontractors will perform all design service tasks
described in this Phase.

     

    
      	
              4.2

            	
              Management/Coordination

            

    

     

    The
Company, either directly or through subcontractors, will provide engineering
services and will assist the City in managing the overall Project and
coordinating all major Project activities, including but not limited to the
following:

     

    
      	
               
      

            	
              ·

            	
              Coordination
      with the NYCDEP, and all New York City and State agencies and Federal
      agencies with jurisdiction;

            

    

    
      	
               
      

            	
              ·

            	
              Developing
      construction documents for the interior demolition and rehabilitation of
      the existing cake storage building which NYCDEP will then advertise, bid,
      and award to the lowest responsible bidder as more fully described in
      Section 4.4;

            

    

    
      	
               
      

            	
              ·

            	
              Preparing
      plans and specifications for the items related to the installation of the
      ARP equipment as more fully described in section
  4.4;

            

    

    
      	
               
      

            	
              ·

            	
              Submitting
      30%, 60%, 90% design deliverables to the NYCDEP for
      review.  Said deliverables will be prepared in accordance with
      Attachment 6, Design Deliverables;

            

    

    
      	
               
      

            	
              ·

            	
              Maintaining
      Project schedule and budget
information;

            

    

    
      	
               
      

            	
              ·

            	
              Submission
      of monthly progress reports;

            

    

     

    
      
        
        

      

      
        SR-4

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              ·

            	
              Coordinating
      and attending all meetings related to the Project, including preparation
      of agenda and minutes;

            

    

    
      	
               
      

            	
              ·

            	
              Conduct
      monthly meetings with NYCDEP regarding construction
    progress;

            

    

    
      	
               
      

            	
              ·

            	
              Managing
      individual task leaders for each design discipline;
  and,

            

    

    
      	
               
      

            	
              ·

            	
              Implementing
      and overseeing quality control, quality assurance  and site
      safety procedures,

            

    

     

    Central
to these services is a detailed cost estimate and construction schedule. The
construction schedule will be cross-checked with other projects and activities
at the 26th Ward WPCP to assure coordination and non-interference. All
construction drawings will be submitted to the Company and the NYCDEP for
approval. A construction schedule, performance checklist and firm fixed price
budget estimate shall be prepared for ''Final Design and Construction" after the
Company's and the NYCDEP’s approval of the detailed design.

     

    Notwithstanding
the above, the City shall retain responsibility for all construction and
construction-related activities, will enter into direct contracts with
construction contractors, and will interface directly with all construction
contractors.  The Company’s role with respect to construction aspects
of the Project shall be to develop construction documents that the City will
advertise, bid and award, to advise and assist the City in the coordination and
management of such activities, and to resolve any design or other issues that
are directly related to the development of these construction
documents.

     

    
      	
              4.3

            	
              Planning

            

    

     

    The
Company will collect data and perform the necessary investigations required to
produce the bid specifications and drawing packages for the demolition and
rehabilitation of the Cake Storage Building; including all utilities
installations, facility modification, associated equipment installation,
supporting process infrastructure and exterior alterations and
additions.  Given the use of an existing building, the initial focus
of this task will be the review of the original design and as-built construction
records of the Cake Storage Building. To the extent possible, the NYCDEP will
make all the records it has in its possession available in a timely manner.
Specifically, the design drawings and specifications, the as-built building
drawings, boring logs and geotechnical reports are needed.  It is the
responsibility of the Company to verify the accuracy of these
documents.

     

    Based on
discussions with NYCDEP plant personnel, it is understood that the location of
the centrate line is adjacent to the north end of the Cake Storage Building and
the location of a 14” high-pressure gas line is adjacent to the south end of the
building. Therefore, the excavation to tie into these utilities is limited.
Similarly, the need for soil characterization is limited and the risk of
generating significant volumes of contaminated soil is also
reduced.

     

    Surveying
and base mapping records will be provided by the NYCDEP, to the extent they are
available.  Field efforts are limited to verifying field conditions
and locations of underground utilities. Based on the current information
provided, the limits of project are defined by an envelope approximately 40 feet
around the Cake Storage Building.  The Company will perform
underground utility data collection and field survey of existing utilities. An
existing condition survey of the building is required to establish the condition
and serviceability of existing Cake Storage Building MEP (mechanical,
electrical, plumbing) and HVAC equipment and feasibility of use for supporting
the ARP® System.  The Company will perform said survey.

     

    
      
        
        

      

      
        SR-5

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    The
geotechnical engineering effort involves the review of historical design records
of the building to establish the capacity of the existing foundation systems to
support the new loads. The Company will review this information to determine if
subsurface field investigations of the existing structure will be
required.  The Company will also determine if modifications to the
Cake Storage Building are required for conformance with current seismic code
design requirements. This analysis and any seismic upgrade are considered in the
proposed scope.  An Environmental Assessment Study (EAS) has been
prepared and submitted to the NYCDEP. Building permits are required and an air
permit is required for the boilers. Application for registration of chemical
storage tanks is also required. The Company will submit the facility information
forms for those tanks as required by NYC regulations. Since the project is
housed within an existing building and operations are consistent with the
current land use, a Consistency Determination per the NYC Waterfront
Revitalization Zone regulations is not required.  No other
environmental approvals for this project are anticipated.

     

    Permits
are required for all construction work, including demolition.  The
Company will assist the City with respect to expediting the preparation, reviews
and approvals of all plans and building and fire related construction
permits.

     

    The
Company will coordinate and provide the sealed drawings for demolition,
modifications to the building and related mechanical, electrical, and plumbing
systems, utility and equipment installation.. The Company will provide
process-related drawings, as required, to support permitting and trade
coordination.

     

    
      	
              4.4

            	
              Design

            

    

     

    The
Company shall prepare contract documents, drawings and specifications required
to define the scope of any required construction activities.  Documents,
drawings, and specifications will detail site preparation activities, the
interior demolition and rehabilitation of the Cake Storage building and its
systems, fabrication and installation of the ARP and other items necessary to
provide a complete, functional ARP system to the
NYCDEP.  Specifications will utilize standard NYCDEP specifications
and approved products wherever possible. The content of the various design
packages will vary, as appropriate, to reflect the use of existing
infrastructure to the maximum extent practicable.  Two separate design
packages will be provided.  The first will include complete design
plans and specifications for the interior demolition and rehabilitation of the
Cake Storage building.  This package will be broken down into five
separate contracts – general, electrical, mechanical, plumbing and HVAC that the
NYCDEP will advertise, bid, and award.  The second package will
include complete design plans and specifications for the ARP
system.  The proposed ARP system design is based on the following key
parameters as provided by the NYCDEP:

     

    
      	
               
      

            	
              ·

            	
              Maximum
      daily centrate flow - 1.2 mgd

            

    

    
      	
               
      

            	
              ·

            	
              Dewatering
      Operations – 365 days/yr

            

    

     

    
      
        
        

      

      
        SR-6

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              ·

            	
              Influent
      Centrate:  

            

    

    
      	
               
      

            	
              ·

            	
              NH3-
      800 mg/l avg.

            

    

    
      	
               
      

            	
              ·

            	
              NH3
      – 1130 mg/l max

            

    

    
      	
               
      

            	
              ·

            	
              Target
      treatment level – 100 mg/l NH3-N
      monthly average

            

    

    
      	
               
      

            	
              ·

            	
              The
      Company will also need to control the pump speed of the centrate discharge
      pumps in the de-watering building to ensure a consistent usable flow rate
      for the ARP System

            

    

    

    
      	
            	
              4.4.1 

            	
              Civil
      Engineering

            

    

     

    Civil
engineering plans and specifications will address all work exterior to the
building. This includes the vertical and horizontal geometry to the centrate
line and natural gas line. The building currently has electrical supply,
domestic water, and domestic waste discharge. Electric may need to be upgraded
or treatment volume of the ARP® System reduced.  Engineering plans
related to treated centrate will direct such treated centrate to a location
specified by NYCDEP.  The final design of the centrate interception
will permit the NYCDEP to allocate and direct variable volumes of centrate to
either the ARP® or AT3 as required.

     

     

    Other
exterior work includes cooling towers, scrubbers, and containment and pavements
for loading and unloading of process chemicals. Provisions for temporary
construction trailers, equipment storage and lay down areas will also be
presented.  The Company shall provide a site plan to NYCDEP showing
the proposed locations.

     

    
      	
            	
              4.4.2 

            	
              Structural
      Engineering

            

    

     

    The
Company will analyze the existing facility to determine its ability to support
the proposed loads and, if required, identify the facility modifications
necessary to correct any deficiencies. Analysis is also required for the
demolition of the Cake Silos and associated equipment. The current basis for
estimating an allowance for construction is that the silos are independent of
the larger Cake Storage Building. It will be verified that removal of the silos
and associated equipment will not impact the structural integrity of the current
building.

     

     

    Structural
design will address required modifications to the first floor slab to support
process equipment and tanks interior to the facility and foundation, containment
and pavement design for the exterior trucking loading and unloading
areas.

     

    
      	
            	
              4.4.3 

            	
              Facility
      Engineering

            

    

     

    Minor
work is proposed exterior to the existing Cake Storage Building to install
cooling towers and scrubbers for odor, ammonia and hydrogen sulfide control and
process chemical storage tank ventilation  The aesthetic design of the
exterior work will be subject to the NYCDEP review and approval, and, if
applicable, Arts Commission approval.  Modifications to the building
will be designed to be able to utilize existing equipment to the maximum extent
possible and the proposed modifications are not subject to LEED evaluation or
compliance with NYC sustainability requirements.

     

    
      
        
        

      

      
        SR-7

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
            	
              4.4.4 

            	
              Electrical
      Engineering

            

    

     

    The
Company will provide engineering and design services to prepare preliminary and
final design drawings and specifications for the distribution of the existing
480v, 3-phase electrical power in the Cake Storage Building. The design will
include technical specifications, one-line diagrams, cable and conduit schedules
and layout drawings from the existing MCC to the ARP® System. The design will be
based, in part, on the following:

     

    
      	
               
      

            	
              ·

            	
              The
      existing 480 volt service can be modified to provide sufficient power to
      support the ARP® System.  Insufficient electrical power may
      result in a reduced system performance or require a change in scope to
      supply alternate electrical energy
sources.

            

    

    
      	
               
      

            	
              ·

            	
              Existing
      branch circuits for the power distribution from the MCC to existing
      building systems (e.g., freight elevators, sump pumps, control room, pump
      room, compressor room, lighting panels and heating and ventilating
      equipment) located within the Cake Storage Building will be
      salvageable.

            

    

    
      	
               
      

            	
              ·

            	
              The
      existing fire alarm, telephone and communications systems are operational
      and suitable for ARP® use.

            

    

    
      	
               
      

            	
              ·

            	
              The
      location of indoor and outdoor lighting and receptacles might require
      relocation.

            

    

     

    
      	
            	
              4.4.5 

            	
              Mechanical
      Engineering

            

    

     

    It will
be verified that there is sufficient head at the intercept point (north end of
the Cake Storage Building) to feed the ARP® process. The ARP® process will need
to interface with the existing centrate discharge pumps.  The
discharge flow rate will need to be controlled to accommodate the operation of
the ARP® System.  Treated centrate will be returned to the existing
centrate line to discharge into a location as specified by the
NYCDEP.

     

    HVAC
service of the building is based upon 15 air changes per hour and comfort
cooling for occupied spaces such as the control room and laboratory areas. The
existing HVAC system will be evaluated to determine its  sufficiency
to support the revised building use. Duct work will require new design to
reflect equipment layout. Servicing of equipment is likely necessary due to lack
of use and maintenance during the period of non-use of the Cake Storage
Building.  It will be verified that the HVAC will be salvageable with
ducting modifications.

     

    
      	
            	
              4.4.6 

            	
              Plumbing

            

    

     

    The
existing domestic water supply to the Cake Storage Building must be adequate for
both domestic and process use. The Company will verify that no changes are
required to the existing plumbing to toilets within the building or to the
existing sanitary discharge points within the building. Water supply to hose
bibs, emergency drench showers and eyewash stations throughout the facility and
domestic water supply to the various pieces of process equipment will be laid
out based on final process equipment layout and requirements.

     

    The
Company will verify that the existing fire protection system is adequate and
will review the sprinkler layout throughout building’s the first floor.
Hydraulic calculations will be performed and distribution and spacing of
sprinkler heads will be designed in accordance with NFPA 13. The Company will
prepare data required for FDNY permit.

     

    
      
        
        

      

      
        SR-8

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              5.

            	
              PHASE
      2 - ARP®
      SYSTEM EQUIPMENT SUPPLY AND
INSTALLATION

            

    

     

    
      	
              5.1

            	
              Fabrication

            

    

     

    Once
Detailed System Design Plans and specifications are approved by the NYCDEP, the
Company will initiate system fabrication.  The Company will
manufacture and assemble the components of the 26th Ward
Ammonia Recovery Process System.  Quality testing will be performed on
all assemblies prior to shipment to 26th Ward
WPCP to minimize installation time.  The Company will work with NYCDEP
to avoid disruptions to 26th Ward
WPCP operations as the ARP® System is installed.

     

    
      	
              5.2

            	
              Installation

            

    

     

    Components
essential to the ARP® System’s reliability and performance will be installed in
typical N+1 fashion.  The ARP® System will be capable of normal
operation while allowing routine maintenance, monitoring and system performance
verification.  A summary list of System components is provided in
Attachment No. 5.  During installation, the Company shall adhere to
the following guidelines:

     

    
      	
               
      

            	
              A.

            	
              If
      necessary the Company’s materials (e.g., tools, supplies, etc.) may be
      stored at the site as directed by the Engineer.  Any storage
      space shall be kept clean and accessible to the Engineer and the staff at
      the 26th
      Ward WPCP at all times.  Every precaution shall be taken to
      avoid damage by fire, water, etc.  The City will not be
      responsible for the security of such materials and any damages or theft
      shall be the responsibility of the
Company.

            

    

     

    
      	
               
      

            	
              B.

            	
              There
      is limited area available at the work-site for the Company’s use for field
      offices, storage of materials, storage and maintenance of equipment,
      automobile parking, and other work related uses.  The location
      of the area shall be as directed by the Engineer, and will be shared by
      other entities working at the site.  On-site parking for
      vehicles is also limited.  Notwithstanding these restrictions,
      the City shall provide limited parking for Company employees
      (subcontractor employees will park off-site) during the term of this
      Agreement and shall supply space for a trailer during Phase 2 of the
      Services.

            

    

     

    
      	
               
      

            	
              C.

            	
              The
      Company is responsible for providing its own hoisting equipment and
      procuring hoisting permits for the installation work required under this
      Agreement.  The Company shall take all necessary precautions to
      prevent damage to existing structures and equipment during the course of
      the work.  The Company shall pay for the repair or replacement
      of any property or equipment of the City which is damaged as a result of
      its work.

            

    

     

    
      	
              5.3

            	
              Specifications

            

    

     

    Unless
specifically noted in the Agreement, all goods must be new and unused and
undamaged, however, vendors are encouraged to use secondary or recycled
materials in the manufacture of products to the maximum extent practicable
without jeopardizing the performance or intended end use of the product unless
such use is precluded due to health and welfare or safety requirements or
product specifications contained herein.

     

    
      
        
        

      

      
        SR-9

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              5.4

            	
              Performance

            

    

     

    The
Company shall furnish and deliver the equipment in the manner and in accordance
with shipping terms agreed upon by the parties.  The Company shall
accept as full compensation therefor the sums set forth in this Agreement, which
sums are amounts at which the Agreement was awarded to the Company.

     

    
      	
              5.5

            	
              Substitution of
      Equipment

            

    

     

    In the event a specified manufacturer’s
commodity listed in the Agreement in Attachment No. 5 becomes unavailable or
cannot be supplied to the City by the Company for any reason, the Company may
substitute a product of equal quality, subject to approval by the Agency Chief
Contracting Officer, which approval shall not be unreasonably
withheld.

     

    
      	
              5.6

            	
              Inspection

            

    

     

    
      	
               
      

            	
              5.6.1

            	
              Right
      to Inspect.  The City shall have the right to inspect the
      equipment at the point or points of delivery.  The City reserves
      the right to make additional inspection(s) at the plant of the
      manufacturer, packer or Company or its supplier(s).  The
      exercise by the City of the right of inspection shall in no way be deemed
      a waiver by the City of any right later to reject, revoke acceptance, or
      recover damages for goods accepted which are not in fact free from patent
      or latent defects, or of the Company’s obligation to deliver conforming
      goods.  The Company will  pay for the costs of NYCDEP
      travel and lodging for equipment shop testing and/or
      inspections.  It is anticipated that testing and/or inspections
      will occur on a monthly basis with respect to any items of equipment
      specified in Attachment No. 5.

            

    

     

    
      	
               
      

            	
              5.6.2

            	
              Removal
      of Non-Conforming Goods.  The Company shall remove any
      non-conforming equipment or part thereof at Company’s own expense within a
      reasonable time not to exceed thirty (30) days after notification of any
      rejection or revocation of acceptance.  The City shall have the
      right to dispose of rejected equipment left longer than thirty (30) days
      at no cost or liability to the City and the Company shall have no right of
      action for damages or any right to an accounting
  therefor.

            

    

     

    
      	
               
      

            	
              5.6.3

            	
              No
      Obligation to Minimize Company Damage.  The City shall be under
      no obligation to sell or resell any rejected goods, whether perishable or
      non-perishable or whether or not such goods are threatened to or do
      depreciate in value, in order to minimize the Company’s
      damages.

            

    

     

    
      	
               
      

            	
              5.6.4

            	
              Costs
      of Additional Inspections.  The Company shall bear the
      reasonable cost of all further inspections required by reason of any
      rejection or revocation of
acceptance.

            

    

     

    
      
        
        

      

      
        SR-10

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              5.6.5

            	
              Risk
      of Loss.  Title and risk of loss shall not pass from the Company
      to the City until the goods have been received by the ordering Agency and
      accepted by the City.  Mere acknowledgment by Agency personnel
      of the delivery or receipt of goods (as in a signed bill of lading) shall
      not be deemed or construed as acceptance of the goods
      received.  The Company bears the risk of loss of all goods until
      inspected and accepted; if acceptance is revoked the Company bears the
      risk of loss thereafter.

            

    

     

    
      	
               
      

            	
              5.6.6

            	
              Right
      to Cure.  Any right of the Company to “cure,” as defined in the
      New York Uniform Commercial Code, shall be employed by the Company within
      a reasonable time; provided that if such period is greater than thirty
      (30) days, the Company shall provide information to the City regarding its
      plan of cure and the Company shall diligently pursue such cure during any
      such extended cure period.

            

    

     

    
      	
              5.7

            	
              Non-Delivery and
      Rejections

            

    

     

    
      	
               
      

            	
              5.7.1

            	
              Rejected
      Goods.  The City may withhold acceptance of or reject any goods
      which are found, upon examination, not to conform to the terms of this
      Agreement.

            

    

     

    
      	
               
      

            	
              5.7.2

            	
              Labels.  All
      goods which are customarily labeled or identified must have securely
      affixed thereto the original unmutilated label or marking of the
      manufacturer.  Failure to comply with this requirement may be
      considered sufficient cause for rejection.  When a label or
      marking is required by any regulatory agency, it must be affixed to all
      goods delivered under this
Agreement.

            

    

     

    
      	
               
      

            	
              5.7.3

            	
              Cover
      (Buying Against Contract).

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      the Company fails to perform in accordance with this Agreement and does
      not cure such failure within the period allowed, the Agency Chief
      Contracting Officer may obtain such goods or any part thereof from other
      sources with or without public letting, as s/he may deem advisable, and,
      with no obligation to Company to mitigate damages.  If the price
      paid in obtaining the goods from other sources is greater than this
      Agreement’s price, the difference, plus the reletting cost and the
      liquidated damages, if any, will be charged against the
      Company.  If such price is less, the Company shall have no claim
      to the difference, but the reletting cost and the liquidated damages will
      become charges against the Company.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      reletting cost is hereby determined to be one hundred ($100) dollars for
      each order, unless a contract readvertisement is necessary, in which case
      it is determined to be two hundred and fifty dollars
    ($250).

            

    

     

    
      
        
        

      

      
        SR-11

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              5.7.4

            	
              Collection
      of Charges.  All charges becoming due under the provisions above
      relating to “Cover” shall be deducted from current obligations that are
      due or may become due to the Company.  In the event that
      collection is not made as provided above, the Company shall pay to the
      City on demand the amount of such
charges.

            

    

     

    
      	
              5.8

            	
              Infringement – Vendor
      Warranty

            

    

     

    The
Company shall deliver the goods specified free from the claim of any third party
by way of infringement including but not limited to patent, copyright, trade
secrets, or the like.  Unless designs were furnished by City, the
execution of this Agreement is deemed to be a warranty by the Company that
Company has inspected the specifications and has determined that no claim of any
third party by way of infringement or otherwise will result from compliance with
the specifications.  The Company shall indemnify and hold the City
harmless against any such claim regardless of whether or not the infringement
arises out of compliance with the specifications, provided City notifies Company
promptly in writing of any claim or suit, gives Company assistance and
information and permits Company to assume full direction and control of any
settlement, negotiations or suit.  Company shall, at its option,
either (a) procure for City the right to continue using the equipment, parts or
materials, (b) modify or replace the equipment, parts or materials or (c) remove
the equipment, parts or materials and refund the purchase price.  The
City may retain any funds due or to become due to the Company sufficient to meet
all claims arising from such infringements.  The sufficiency of such
amount shall be conclusively determined by the Comptroller.

     

    
      	
              5.9

            	
              Company
      Warranty

            

    

     

    The
Company represents and warrants that all equipment delivered pursuant to this
Agreement will conform in all respects with the specifications furnished,
specified or approved by the City.  The Company warrants title to the
equipment and that all equipment manufactured by Company and delivered hereunder
will meet the agreed applicable specifications, be new, free from defects in
material and workmanship for a period of twelve (12) months from the completion
of start-up, provided such defects are open to discovery during the warranty
period and such equipment is used by City in accordance with specific
recommendations of Company to City including the pressure range for which the
equipment was manufactured.  The City shall be obligated to promptly
report any claimed defect in writing to the Company immediately upon discovery
and, in any event, within the above period.  After notice from City
and reasonable substantiation of the claim, at Company’s expense and request,
City shall return the goods to Company FOB Company’s designated plant or service
location, and Company shall, subject to City’s concurrence, either correct such
defect by suitable repair to such equipment; furnish replacement goods FOB
City’s facility/delivery point at Company’s expense; and /or refund the full
contract price paid by City.  Any repayment of purchase price shall be
without interest.  Company warrants any repair work performed on the
equipment will meet specific requirements, if any, of this Agreement and will be
done in a good and workmanlike manner.  Company warrants its repair
work for the period of six (6) months from completion of such
repairs.  Company warrants any labor performed will meet specific
requirements, if any, of this Agreement and will be done in a good and
workmanlike manner.  Company warrants its labor for the period of
ninety (90) days from completion of such labor.  Further, Company
assigns to City when Company is not the manufacturer of the Equipment any and
all manufacturers’ and/or suppliers’ product warranties and remedies thereunder
applicable to such equipment.  Consistent herewith Company agrees to
submit and otherwise handle all product warranty claims of City with the
applicable manufacturer or supplier of the equipment and fully assist and
intervene on City’s behalf in the enforcement of the manufacturers’ and
suppliers’ warranties.

     

    
      
        
        

      

      
        SR-12

        
          

        

      

      
        
        

      

      
        Contract
No. PO-98B

         

         

      

    

    EXCEPT AS
SET FORTH HEREIN AND EXCEPT AS TO TITLE, IT IS EXPRESSLY AGREED THAT (A) THERE
IS NO IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS OR OTHER WARRANTY, EXPRESS,
IMPLIED, STATUTORY, OR ANY AFFIRMATION OF FACT OR PROMISE BY THE COMPANY WITH
REFERENCE TO THE EQUIPMENT, PARTS, SERVICES, OR OTHERWISE WHICH EXTENDS BEYOND
THE DESCRIPTION OF THE EQUIPMENT, PARTS, OR SERVICES SET FORTH HEREIN AND (B)
CITY ACKNOWLEDGES THAT IT IS PURCHASING THE EQUIPMENT, PARTS, OR SERVICES SOLELY
ON THE BASIS OF THE COMMITMENTS OF COMPANY EXPRESSLY SET FORTH
HEREIN.

     

    
      	
              5.10

            	
              Start-up and Testing
      of System

            

    

     

    After the
completion of all construction work by the City and the delivery and
installation of all ARP® System equipment by the Company, the Company shall
start-up and test the System.  The Company shall provide a start-up
and testing plan to the City for their review and approval at least 30 days
prior to start-up.  The startup and testing period will be thirty (30)
days.  During the start-up and testing period, the Company will
conduct preliminary field tests of the equipment and controls as soon as
conditions permit and the NYCDEP approves.  Deficiencies will be
identified, documented and corrected.  In addition, during this period
the Company shall test the basic functionality of the System and confirm that
the System is ready and able to accept centrate.

     

    The
Company will notify the NYCDEP a minimum of 15 business days prior to initiating
start-up operations. Upon the successful completion of start-up operations and
testing by the Company, as determined by the City, the Company will initiate
System operations. 

     

    
      	
              6.

            	
              PHASE
      3 - ARP®
      OPERATIONS

            

    

     

    After the
successful start-up of the System by the Company, as determined by the City, the
operations portion of the Services shall commence (Phase 3).  During
the operational Phase, the Company shall operate and maintain the System for
twelve (12) months.

     

    
      
        
        

      

      
        SR-13

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    The
System will be designed to accept no more than 1,200,000 gallons per day of
centrate from the 26th Ward WPCP.  The ARP process will treat the
centrate and thereby reduce the concentration of ammonia to 100 parts per
million (ppm) as NH3-N or less
on a monthly average basis.  The ammonia reduced centrate will then be
returned to the existing wastewater treatment process.  The Company
will also be responsible for using good faith efforts to market and distribute
the by-product resulting from the ARP®  System.

     

    
      	
              6.1

            	
              Monitoring

            

    

     

    After
startup, the Company will operate the ARP®  System for a 12-month
period and shall monitor the performance of the System.  The Company staff
will maintain detailed records of system operations to include material
consumption rates, energy consumption, and system operating parameters such as
influent centrate characteristics, effluent centrate characteristics, and
ammonium sulfate product quality.  The ARP®  System influent
flow monitoring will be performed at the pipeline after the cartridge filter and
prior to the ARP®.   The effluent ammonia concentration shall be
measured after the ARP®  column before returning back to the
wastewater treatment process.  Composite samples shall be sent out to a NY
State Department of Health Certified laboratory for testing on a weekly
basis.  Small samples of treated centrate taken at intervals of
approximately every 6 hours will be collected and equal aliquots from each
blended to comprise the composite sample.  The collected composite samples
will be collected in a measured quantity of buffer solution and the mixture
split into three samples prior to shipment.  One portion of the sample will
be analyzed by the Company, one portion analyzed by the certified laboratory and
the final portion of the sample will be archived for a period of thirty (30)
days.  The specification for outside laboratory testing will require the
use of Standard Method 4500 (NH3) Part B (distillation) and Part C (Titration)
for ammonia determination.  Records will be kept for the quantity of buffer
solution used as well as purchased chemicals and general performance (Standard
Methods Handbook 20th Edition).  Influent samples will be taken and stored
in the same manner as effluent samples.  The first will be analyzed by the
Company and the other portion of the sample will be archived for a period of
thirty (30) days.  All Company testing and storage will be as required by
Standard Method 4500, and records will be kept in the same manner as described
above for effluent standards.

     

    
      	
              6.2

            	
              Preparation of Color
      Flow Diagrams

            

    

     

    Company
shall prepare color flow diagrams depicting the as-built equipment, tankage,
valves, piping, etc, for each system.  Each system shall be
represented by one or more diagrams.  No diagram shall contain more
than one system except where two or more fluids or materials enter and/or leave
a piece of equipment or other structure.  In this case the secondary
fluids or material lines will only be shown sufficiently to indicate type of
fluid or materials, direction and on which diagram continuation may be
found.

     

    Each
diagram shall show the outline of process areas, structures and equipment as
well as all lettering in black.  Pipelines and valves shall be shown
in accordance with the NYCDEP's color coded list.  Vessels shall be
shaded to depict the contents thereof.  In the event there is a fluid
or material not covered by the color code list the Engineer shall in writing,
request a determination from NYCDEP.

     

    
      
        
        

      

      
        SR-14

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    All
dashed lines shall conform to NYCDEP's requirements.  All valves
normally closed shall be filled in (in black) and so indicated in the
legend.  Valves, equipment and structures shall have identification
numbers lettered conforming to NYCDEP's standards.

     

    Company
shall submit to NYCDEP for approval, draft prints of each flow diagrams. Company
shall furnish six (6) complete sets of color diagrams. Company shall also
furnish the color diagrams on diskette or CD-ROM for use by NYCDEP
staff.

     

    
      	
              6.3

            	
              Preparation of
      Operations and Maintenance
Manual

            

    

     

    Company
shall prepare an Operations and Maintenance Manual in hard copy and electronic
form (the “Manual”) and shall provide copies (both in hard copy and
electronically) to NYCDEP.  The Manual shall reflect intent, design
options and operating modes for the plant systems and areas changed under this
project.

     

    
      	
              6.4

            	
              Preparation of
      Standard Operating
Procedures

            

    

     

    Company
shall develop standard operation procedures for the upgraded systems for the
plant.  The guide shall utilize visual aids such as cross sections,
plans, schematic and isometric figures to assist in clearly conveying the
information.  The procedures shall be printed on standard 8 1⁄2 x 11
paper, and designed so that they can be included in the Operations and
Maintenance Manual for reference, or be mounted separately as a stand-alone
procedure.  

     

    
      	
            	
              6.4.1 

            	
              Update
      the Emergency Operations Plan

            

    

     

    Company
shall review the existing Emergency Operations Plan (EOP) in order to
incorporate any necessary updates.  The Company shall provide updates
to the existing EOP.  The updates will encompass any changes in the
existing EOP that will be necessary due to equipment updates in this
contract.  The updates will identify changes in actions, specific
personnel responsibilities, procedures, and equipment required by the upgrades
to the WPCP.    

     

    
      	
            	
              6.4.2 

            	
              Equipment
      Maintenance Data

            

    

     

    Company
shall collect and organize equipment and related maintenance data to assist
NYCDEP staff with incorporating data into existing maintenance management
program information.  The data shall be transmitted in a format
acceptable to and approved by NYCDEP.

     

    
      	
              6.5

            	
              Training

            

    

     

    Company
will train City staff in the operation and maintenance of the
ARP®  System.  Such training shall include the provision of
training materials and the following activities:

     

    1.           Determine
equipment training audience for operations, electrical maintenance, mechanical
maintenance, electronic maintenance.

     

    2.           Review
and expand as required manufacturer's training lesson plans.

     

    3.           Coordinate
training scheduling with NYCDEP staff.

     

    
      
        
        

      

      
        SR-15

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    4.           Proctor
and coach instructor conducting manufacturer training.

     

    5.           Prepare
training completion reports including attendance, covered material synopsis and
evaluation of the presentation.

     

    During
the Phase 3 Operations, Company shall provide the services of a full time onsite
representative to train the NYCDEP staff.  This representative shall
be in addition to any process operations staff needed to operate the system
during the Operations Period.  Training shall consist of a combination
of classroom and field training and shall incorporate power point
presentations.  Training shall consist of 100 hours of combined
classroom and hands-on time.  Training shall be based on the operation
and maintenance manuals and the operations plan provided by
Company.  A lesson plan for each training session shall be submitted
to the NYCDEP.  The NYCDEP may at its option video record all
training. The NYCDEP may submit, for the approval by the New York State
Department of Environmental Conservation (NYS DEC), an ARP  training
program to provide contact time for Professional Licensing maintenance and
Wastewater  Treatment License Re-Certification.

     

    
      	
              6.6

            	
              Coordination with
      City

            

    

     

    The 26th
Ward WPCP will be in continuous operation by the NYCDEP during the period in
which the System is expected to be operating.  The parties shall
cooperate such that work under this Agreement may be scheduled and conducted by
the Company such that it will not impede the operation of the 26th Ward
WPCP.  At no time during course of this Agreement may the Company
close or obstruct any roadway, sidewalk, or passageway by the placement or
storage of materials or equipment without the permission of the Engineer or his
designee.  All operations shall be conducted with minimal interference
to vehicular and pedestrian traffic on these ways.

     

    
      	
              6.7

            	
              Operational
      Responsibilities of Company

            

    

     

    The
Company shall comply with the following during the Phase 3 operational
period:

     

    
      	
               
      

            	
              A.

            	
              Assume
      complete charge of, and have care, custody and control over the operations
      and maintenance of the System and the provision of
    services.

            

    

     

    
      	
               
      

            	
              B.

            	
              Provide
      all on-site labor and equipment to maintain and operate the ARP®
      system.

            

    

     

    
      	
               
      

            	
              C.

            	
              Perform
      or cause to be performed all operation and maintenance of the System and
      supply or cause to be supplied all chemicals, goods, materials, personnel
      and services in accordance with the provisions of this
      Agreement.

            

    

     

    
      	
               
      

            	
              D.

            	
              Perform
      all necessary work in accordance with approved Operation and Maintenance
      Plans; all applicable City, State and Federal laws, regulations, codes,
      permits, licenses and standards; prudent engineering practices; the
      accepted HASP; and this Agreement.

            

    

     

    
      	
               
      

            	
              E.

            	
              Assist
      the City in obtaining and maintaining all necessary licenses and permits
      required to allow Company to perform the work and establish a
      self-monitoring program ensuring compliance with the requirements of all
      licenses and permits.

            

    

     

    
      
        
        

      

      
        SR-16

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              F.

            	
              Cooperate
      with the City regarding regular access to and inspection of the System,
      performance records and logs, test results, scheduling of planned
      shutdowns and the implementation of operating and safety procedures on the
      26th
      Ward WPCP Site.

            

    

     

    
      	
               
      

            	
              G.

            	
              Maintain
      operating logs, records and reports and current revisions of any System
      drawings, specifications and manuals and prepare and submit reports to the
      City in accordance with the
Agreement.

            

    

     

    
      	
               
      

            	
              H.

            	
              Advise
      the City promptly in the event of an emergency affecting the safety or
      protection of persons or endangering the 26th
      Ward WPCP or 26th
      Ward WPCP Site and take prompt action to prevent threatened damage, injury
      or loss.

            

    

     

    
      	
               
      

            	
              I.

            	
              Implement
      training programs for new hires and refresher courses for operating and
      maintenance personnel.

            

    

     

    
      	
               
      

            	
              J.

            	
              Submit
      billing invoices to the City in accordance with this
      Agreement.

            

    

     

    
      	
               
      

            	
              K.

            	
              Designate
      a manager who shall act as the single point of contact for the City during
      the term of the Agreement.

            

    

     

    
      	
               
      

            	
              L.

            	
              Provide
      a monthly status report to the City explaining the status of the services
      and providing scheduling information that will enable the City to
      coordinate the activities of the Company with the City and City’s other
      contractors at the Site.

            

    

     

    
      	
               
      

            	
              M.

            	
              Take
      all reasonable precautions to protect the persons and property of the City
      and of others from damage, loss or injury from the Company’s
      operations.  The Company’s obligation to protect shall include,
      but not be limited to the duty to provide, place, and adequately maintain
      at or about the site sufficient and suitable equipment, lights,
      barricades, enclosures and personnel to safely and efficiently operate the
      System.  Within three days after notice of any such loss,
      damage, or injury, the Company shall make full and complete report thereof
      to the City.  The Company shall notify the City in writing of
      any loss, damage or injury or accidents to property, or persons within
      twenty-four hours of the
occurrence.

            

    

     

    
      	
               
      

            	
              N.

            	
              Conduct
      monthly meetings with NYCDEP regarding the status of System
      operations.

            

    

     

    
      	
              6.8

            	
              Byproduct
      Marketing

            

    

     

    The
Company shall be responsible for the marketing, sale and/or disposal of ammonium
sulfate produced at the System.  The Company shall locate potential
buyers or users of the ammonium sulfate produced at the System and the Company
shall be responsible for delivering the ammonium sulfate to such buyers and/or
users.  The Company believes that ammonium sulfate from the System may
be usable for land reclamation or as fertilizer.  Any contracts
related to the purchase or use of ammonium sulfate from the System, including
contracts with wholesalers or brokers, shall be between the Company and the
third party user or purchaser.  Any revenue from such sales shall be
retained by the Company.  To the extent that all or a portion of such
by-products are not successfully marketed, the Company shall be responsible for
disposing of such materials and shall provide NYCDEP with the manifest for
disposal of such materials.  The Company shall bear all costs related
to the marketing, sale or disposal of byproducts.  The Company shall
be reimbursed by the City for costs related to handling, storage, and
transportation of ammonium sulfate.

     

    
      
        
        

      

      
        SR-17

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              6.9

            	
              Reagents

            

    

     

    The
Company shall be permitted the addition of reagents to the centrate during
processing if identified as an inherent part of the
ARP®  technology.  Reagents may include but not be limited
to caustic and sulfuric acid which are used in the ammonia recovery process
system.  Under no circumstance shall the Company be permitted to use a
reagent that is a regulated waste, unless the Company receives prior approval
from the regulatory agency(ies) maintaining jurisdiction over the Company’s
processing facility and the Company can demonstrate to the City an apparent
benefit in using the material in its process.

     

    If
reagents are utilized, the Company agrees to transport reagents by trucks from
the manufacturers to the  26th Ward
WPCP or to make other arrangements for the delivery of such reagents to the
26th
Ward WPCP.  The Company shall be permitted to utilize selected
roadways at the 26th Ward WPCP for temporary queuing of the trucks prior to
unloading, as directed by the City.  The Company shall be reimbursed
by the City for all costs related to reagents, including transportation
costs.

     

    
      	
              6.10

            	
              Mitigation and
      Indemnification

            

    

     

    The
Company shall address and mitigate, in a prompt fashion, any adverse effects in
the System that may cause harm to public health or the environment, 26th Ward
WPCP personnel, and/or the 26th Ward
WPCP or its operations, as deemed necessary by Federal, State and local
regulatory agencies.  The Company shall notify the City immediately
upon occurrence of the adverse condition or situation and shall keep the City
informed of the status of mitigative actions.  To the extent such
adverse effects were due to the fault of Company, all related costs and expenses
associated with the mitigative activities shall be borne by the
Company.  To the extent such adverse effects were not due to the fault
of Company, all related costs and expenses associated with the adverse effects,
as well as the mitigative activities, shall be borne by the City.

     

    The
Company shall assume the defense of all claims of whatever character which may
be brought against the City arising out of any adverse condition or situation
identified at the System and due to the fault of the Company, and indemnify and
save the City, its officers and employees, to the greatest extent permitted by
law, harmless from all claims arising out of injury (including death) or damages
to persons, or property.  The Company shall not be required to
indemnify the City against damage or claims that are not due to the fault of
Company.

     

    
      
        
        

      

      
        SR-18

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              6.11

            	
              Operation and
      Maintenance Plan

            

    

     

    The
Company shall prepare and submit to the City for approval a comprehensive
Operation and Maintenance (O & M) Plan no later than sixty (60) days prior
to the date that the System is scheduled to commence operations.  As a
minimum, this shall include the following:

     

    
      	
               
      

            	
              A.

            	
              Schedule
      of planned shutdowns for maintenance on equipment, storage/ transshipment,
      handling, marketing, distribution (if
  applicable).

            

    

     

    
      	
               
      

            	
              B.

            	
              Emergency
      plan of operation, including backup capability, indicating all impacts on
      the City’s operation.

            

    

     

    
      	
               
      

            	
              C.

            	
              Copies
      of all permits, licenses, and other regulatory documents obtained for
      Company’s services, if not previously
submitted.

            

    

     

    
      	
               
      

            	
              D.

            	
              Staffing
      plan showing a breakdown by staff classification of all personnel to be
      utilized during operations and maintenance
  activities.

            

    

     

    
      	
               
      

            	
              E.

            	
              Operational
      Quality Control Program.

            

    

     

    
      	
              6.12

            	
              Health and Safety Plan
      (HASP)

            

    

     

    Within 30
days of the notice to proceed, the Company shall submit to the City in writing,
a specific site Health and Safety Plan (HASP). The HASP shall meet all of the
requirements, if any, specified elsewhere in the Specific Requirements, as well
other requirements of NYCDEP, and the following:

     

    
      	
               
      

            	
              (a)

            	
              The
      HASP shall identify and define the hazards anticipated, describe control
      measures required, establish a safety training program meeting all
      applicable safety mandates and develop the necessary safety check list
      forms specific to the work methods and crews performing work at the
      various job locations.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      HASP shall identify and address:  1) specific work areas and
      their anticipated hazards, 2) control measures to protect workers from
      those hazards, 3) surveillance methods, and schedules of both walk-through
      surveys and in-depth safety audits to be performed on site, 4) emergency
      evacuation procedures, 5) areas requiring personal protection equipment,
      types of personal protection equipment, and availability of personal
      protection equipment on site, 6) medical monitoring and screening methods,
      7) emergency response procedures, 8) copies of safety inspection check-off
      sheets to be used on a regular basis in evaluating the site and work
      methods, 9) means and methods to control emissions of dust and fibers from
      any building openings, 10) safety personnel qualifications, and 11)
      materials safety data sheets for chemicals
..

            

    

     

    The
Company shall submit six (6) copies of the HASP to the Project Engineer for
approval.  Acceptance of the plan by the City shall not impose on the
City the responsibility for the Company’s health and safety program nor will it
relieve the Company from any of its safety responsibilities.

     

    
      
        
        

      

      
        SR-19

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
              6.13

            	
              Hot Work
      Operations

            

    

     

    Hot work
operations shall include but not be limited to, grinding, welding, burning,
cutting, heating, brazing, soldering, or any use of spark generating
tools.  All hot work shall be performed in accordance with the
provisions of OSHA Standard 1910-155.  A fire watch shall be used for
each hot work operation.

     

    Interim
Permit Form 9-03 Part A and Interim Permit Form 9-03 Part B will be furnished to
the Company.  Form 9-03 Part A shall be completed weekly and shall be
valid for a maximum of seven (7) consecutive calendar days.  Form 9-03
Part B shall be completed each day a hot work operation is
used.  Items 1 through 26 inclusive on both forms shall be completed,
signed and dated by the Company.  The Engineer will complete and sign
Items 27 through 33 (Form 9-03 Part A).  Completed forms shall be
posted conspicuously at the work location.

     

    
      	
              6.14

            	
              Emergency
      Plan

            

    

     

    The
Company shall have proper emergency and rescue equipment adequately maintained
and readily available for such foreseeable contingency. This equipment shall
include such applicable items as:  proper fire extinguishers, first
aid supplies, safety ropes and harnesses, stretchers, water safety devices,
oxygen breathing apparatus, resuscitators, gas detectors, oxygen deficiency
indicators, combustible gas detectors, etc.  This equipment should be
kept in protected areas and checked at scheduled intervals.  A log
shall be maintained indicating who checked the equipment, when it was checked,
and that it was acceptable.  This equipment log shall be updated
monthly and be submitted with the monthly report.  Equipment that
requires calibration shall have copies of dated calibration certificates on
site.  Substitute safety equipment must be provided while primary
equipment is being serviced or calibrated.

     

    The
Company shall promptly report to the City all accidents involving injury to
personnel or damage to equipment and structures as specified in the Agreement
and shall investigate these accidents and prepare required reports and submit a
monthly summary of these accidents. The summary report shall include
descriptions of corrective actions to reduce the probability of future similar
accidents. In addition, the Company shall furnish to the City a copy of all
accident and health or safety hazard reports received from OSHA or any other
government agency within one day of receipt.

     

    In
addition to the reports, the Company is required to file under the provisions of
the Workmen’s Compensation Law, the Company shall submit to the City, on or
before the 10th day of each month, a report giving the total work force employed
on this Agreement in man-hours during the previous calendar month, the number
and character of any and all accidents resulting in loss of time or considered
recordable by OSHA, and any other information on classification of employees,
injuries received on the job, and disabilities arising therefrom.  The
submittal shall also contain an audit report for the prior month, including the
safety training conducted, the equipment logs, records of the condition of the
work areas, safety and health records, OSHA and ANSIXZ16.1 incidence rates for
frequency and severity of recordable accidents, and an evaluation of the
effectiveness of the safety plan, with any changes necessary. The safety
professional and the Company shall sign this audit report. The City shall review
these reports to ensure the Company’s compliance with the safety provisions of
the Agreement.

     

    
      
        
        

      

      
        SR-20

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    All
personnel employed by the Company or its subcontractors or any visitors entering
the job site shall be required to wear appropriate personal protection equipment
required for that area. The Company shall continuously provide all necessary
personal protective equipment as requested by the City for its designated
representatives.

     

    
      	
              6.15

            	
              Cleanup of
      Spills

            

    

     

    All
chemical storage facilities will have a containment area in case of an
accidental spill. In the event of an accidental spill during the test, it will
be the Company’s responsibility to immediately notify the City and to take all
the necessary steps to properly contain and clean such spill to the prevailing
standards required by local, state and/or federal regulations governing such
incidents. The Company shall also be responsible for the proper disposal of all
spills and refuse resulting from the clean-up. If necessary, the contaminated
waste shall be stored in a secured area and be removed as promptly as practical
by the Company.  To the extent that a spill occurs due to the fault of
Company, then Company shall bear the costs of the activities set forth in this
section.  To the extent that a spill is not due to the fault of
Company, then the City shall bear such costs.

     

    
      	
              6.16

            	
              On-Site Chemical
      Storage Facility

            

    

     

    All
chemicals shall be stored in a chemical storage facility. The chemical storage
facility should be located in a separate area and be secured in a manner that
will only allow access to the Company personnel and or NYCDEP personnel involved
in demonstration test. The chemical storage facility shall conform to applicable
state and/or federal regulations and industrial codes and standards approved by
the City.

     

    
      	
              6.17

            	
              Reports

            

    

     

    Within
fifteen (15) days following the end of each month during the operation period,
the Company shall submit a summary report describing the operation and
maintenance performed for the preceding month.  This report shall
include, but not be limited to:

     

    
      	
               
      

            	
              A.

            	
              Quantities
      by volume of centrate processed by
  ARP®  System;

            

    

     

    
      	
               
      

            	
              B.

            	
              Quantities
      by weight or volume of reagents, amendments and/or chemicals used in
      processing the centrate, if any;

            

    

     

    
      	
               
      

            	
              C.

            	
              Quantities
      by weight or volume of solid and/or liquid waste generated during the
      process, if any, and the method of
disposal;

            

    

     

    
      	
               
      

            	
              D.

            	
              Results
      of any tests and/or monitoring
conducted;

            

    

     

    
      	
               
      

            	
              E.

            	
              Significant
      operational difficulties and methods employed to remedy
    them;

            

    

     

    
      	
               
      

            	
              F.

            	
              Maintenance
      activities and associated labor
requirements;

            

    

     

    
      	
               
      

            	
              G.

            	
              Copies
      of all reports submitted to regulatory agencies during the
      month;

            

    

     

    
      
        
        

      

      
        SR-21

        
          

        

      

      
        
        

      

      
        
          Contract
No. PO-98B

           

           

        

      

    

    
      	
               
      

            	
              H.

            	
              All
      accidents involving injury to personnel or damage to equipment and
      structures as specified in this Agreement.  Company shall
      investigate any accidents and prepare required reports and submit a
      monthly summary of any such accidents. The summary report shall include
      descriptions of corrective actions taken to reduce the probability of
      similar accidents.

            

    

     

    
      	
               
      

            	
              I.

            	
              Within
      thirty (30) days following the end of the last month of the Agreement, the
      Company shall prepare a final report that describes in detail the
      operation and maintenance performance of the
  System.

            

    

     

    
      	
              7.

            	
              RESPONSIBILITIES
      OF THE CITY

            

    

     

    The City
shall provide the following work and services with respect to the
Project:

     

    
      	
               
      

            	
              A.

            	
              Designate
      an Engineer who shall act as a single point of contact to interact with
      the Company.

            

    

     

    
      	
               
      

            	
              B.

            	
              Review
      all System related drawings, specifications, reports and manuals in a
      timely manner so as not to unreasonably impact Company’s service
      implementation schedule.

            

    

     

    
      	
               
      

            	
              C.

            	
              Obtain,
      with the assistance of Company, where appropriate, the licenses and
      permits necessary for the Project.

            

    

     

    
      	
               
      

            	
              D.

            	
              Pay
      the Company for the services provided in accordance with this
      Agreement.

            

    

     

    
      	
               
      

            	
              E.

            	
              To
      the extent available, provide the drawings, specifications, reports and
      performance data specified in Section 4.4 of these Specific
      Requirements.

            

    

     

    
      	
               
      

            	
              F.

            	
              Provide
      adequate space at the 26th Ward WPCP for the
  System.

            

    

     

    
      	
               
      

            	
              G.

            	
              Provide
      water, sewer, centrate supply, natural gas and power facilities for the
      System.

            

    

     

    
      	
               
      

            	
              H.

            	
              Implement
      all site preparation work and all construction work related to the
      demolition and rehabilitation of the Cake Storage Building, process
      equipment, and miscellaneous systems in order to accommodate the
      ARP®  System at the 26th
      Ward WPCP.  All such work shall be in accordance with the design
      and schedule provided by the
Company.

            

    

     

    
      	
               
      

            	
              I.

            	
              Provide
      the Company adequate access to the 26th
      Ward WPCP and the 26th Ward WPCP Site in order for the Company to perform
      its obligations pursuant to this
Agreement.

            

    

     

    
      	
               
      

            	
              J.

            	
              Provide
      coordination of feed and effluent flows with the operations of the 26th
      Ward WPCP.

            

    

     

    
      
        
        

      

      
        SR-22

        
          

        

      

      
        
        

      

    

    
      
        Contract
No. PO-98B

         

         

      

    

    ATTACHMENT
NO. 2

     

    PROPOSED
SUBCONTRACTORS

     

    

     

    Engineering
and Operational Services

    CASTion
Corporation

    10 Bond
Street

    Worcester,
MA 01606

    

    Design
and Engineering Services

    AECOM

    One World
Financial Center

    25th
Floor

    New York,
NY 10281

    

    Permitting
Services

    Walter T.
Gorman PE PC

    115-14
Beach Channel Drive

    Rockaway
Park, NY 11694

    

    Assessment
Services

    Creative
Environmental Solutions

    1 Penn
Plaza

    New York,
NY 10119

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Project
      Schedule 2-22-2010

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                1

              	
                2

              	
                3

              	
                4

              	
                5

              	
                6

              	
                7

              	
                8

              	
                9

              	
                10

              	
                11

              	
                12

              	
                13

              	
                14

              	
                15

              	
                16

              	
                17

              	
                18

              	
                19

              	
                20

              	
                21

              	
                22

              	
                23

              	
                24

              	
                25

              	
                26

              	
                27

              	
                28

              	
                29

              	
                30

              	
                31

              	
                32

              	
                33

              	
                34

              	
                35

              	
                36

              	
                37

              	
                38

              	
                39

              	
                40

              	
                41

              	
                42

              	 
      	 
      
	
                AECOM
      PKG1-DEMOLITION SPECIFICATION

              	
                DEP
      DEMOLITION PROCUREMENT/BIDDING

              	
                DEMOLITION
      ACTIVITY

              	 
      	
                TWELVE
      MONTH OPERATIONAL PERIOD

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                AECOM
      PKG2-BUILDING AND SITE WORK SPECIFICATION

              	
                DEP
      PROCESS TIME TO START CONSTRUCTION

              	
                CONSTRUCTION,
      UTILITIES, FACILITIES AND PROCESS INFRASTRUCTURE

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                INSTALL
      EQUIPMENT

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                AECOM
      PKG3A-CASTION EQUIPMENT SPECIFICATION

              	
                PROCURE,
      FABRICATE, ASSEMBLE, TEST, PACK AND SHIP ALL EQUIPMENT

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                AECOM
      PKG3B-NON-CASTION EQUIPMENT SPECIFICATION

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Proposed
      Payment Terms ThermoEnergy ARP

                                        	 	
                                          revised
      2-22-2010

                                        	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase
      1 - design/engineering

                                        	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase
      2 - Furnish and Install Equipment

                                        	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase
      3- Operations

                                        	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	 
      	 	 	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Proposed
      Payment Terms ThermoEnergy ARP

                                        	 	
                                          revised
      2-22-2010

                                        	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase
      1 - design/engineering

                                        	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase
      2 - Furnish and Install Equipment

                                        	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase
      3- Operations

                                        	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	 
      	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Phase 1 Task Design
      and Engineering Services

                                        	 	 	 	 	
                                          Phase2 Task Equipment
      Supply

                                        	 	 	 	 
      	
                                          Phase 3 Task
      Operations and Maintenance Services

                                        	 
	
                                          project
      management fee1

                                        	 	 	$	841,167.00	 	 
      	 	 	 	 
      	 
      	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 
      	 
      	 	 	 
	
                                          Cake Storage Bldg Demo
      and Rehab

                                        	 	 	 	 	 	
                                          RCAST Equipment total
      $3,927,792.00

                                        	 	 	 	 
      	
                                          12
      monthly payments @$193,698.00

                                        	 
	
                                          30%
      demo bid plans and specs

                                        	 	 	$	329,703.00	 	
                                          25%
      @ start of production

                                        	 	$	981,948.00	 	 
      	 
      	 	 	 
	
                                          60%
      demo bid plans and specs

                                        	 	 	$	109,901.00	 	
                                          25%
      @release of PO to vendors

                                        	 	$	981,948.00	 	 
      	
                                           TOTAL
      Phase 3

                                        	 	$	2,324,383.00	 
	
                                          90%
      demo bid plans and specs

                                        	 	 	$	109,901.00	 	
                                          25%
      @ receipt of vendor invoices

                                        	 	$	981,948.00	 	 
      	 
      	 	 	 	 
	
                                          100%
      demo bid plans and specs

                                        	 	 	$	109,901.00	 	
                                          25%
      @ post-factory testing

                                        	 	$	981,948.00	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          ARP Equipment (RCAST
      and CAST)

                                        	 	 	 	 	 	
                                          CAST Equipment total
      $1,526,960.00

                                        	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          30%
      construction bid plans and specs

                                        	 	 	$	879,208.00	 	
                                          25%
      @ start of production

                                        	 	$	381,740.00	 	 
      	 
      	 	 	 	 
	
                                          60%
      construction bid plans and specs

                                        	 	 	$	219,802.00	 	
                                          25%
      @release of PO to vendors

                                        	 	$	381,740.00	 	 
      	 
      	 	 	 	 
	
                                          90%
      construction bid plans and specs

                                        	 	 	$	109,901.00	 	
                                          25%
      @ receipt of vendor invoices

                                        	 	$	381,740.00	 	 
      	 
      	 	 	 	 
	
                                          100%
      construction bid plans and specs

                                        	 	 	$	109,901.00	 	
                                          25%
      @ post-factory testing

                                        	 	$	381,740.00	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          Additional
      Equipment

                                        	 	 	 	 	 	 	 	
                                          Additional Equipment
      total $4,674,125.00

                                        	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          30%
      equipment plans and specs

                                        	 	 	$	659,406.00	 	
                                          25%
      @ start of production

                                        	 	$	1,168,531.00	 	 
      	 
      	 	 	 	 
	
                                          60%
      equipment plans and specs

                                        	 	 	$	219,802.00	 	
                                          25%
      @release of PO to vendors

                                        	 	$	1,168,531.00	 	 
      	 
      	 	 	 	 
	
                                          90%
      equipment plans and specs

                                        	 	 	$	219,802.00	 	
                                          25%
      @ receipt of vendor invoices

                                        	 	$	1,168,531.00	 	 
      	 
      	 	 	 	 
	
                                          100%  equipment
      plans and specs

                                        	 	 	$	219,802.00	 	
                                          25%
      @ post-factory testing

                                        	 	$	1,168,532.00	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          Construction
      Management 2

                                        	 	 	 	 	 	
                                          Installation mgmt,
      labor and contractor fees3

                                        	 	 
      	 
      	 	 	 	 
	
                                          14
      monthly payments @$117,714.00

                                        	 	 	$	1,545,000.00	 	
                                          7
      monthly payments @ $456,064.00

                                        	 	$	3,192,423.00	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          Asbestos
      Survey

                                        	 	 	 	 	 	 	 	
                                          consumables and start
      up

                                        	 	$	100,000.00	 	 
      	 
      	 	 	 	 
	
                                          start
      study

                                        	 	 	$	25,750.00	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          50%
      completion

                                        	 	 	$	51,500.00	 	
                                          DEP
      shop-testing and inspection fee

                                        	 	$	20,000.00	 	 
      	 
      	 	 	 	 
	
                                          100%
      study completion

                                        	 	 	$	25,750.00	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          TOTAL
      Phase 1

                                        	 	 	 	 	$	5,786,197.00	 	
                                          TOTAL
      Phase 2

                                        	 	$	13,441,300.00	 	 
      	
                                          TOTAL
      Phase 3

                                        	 	$	2,324,383.00	 
	 
      	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          SUB
      TOTAL ALL Phases

                                        	 	$	21,551,880.00	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          pass-thru
      estimates

                                        	 	 	 	 	 	 	 	 	 
      	 	 	 	 	
                                          Labor
      Rates

                                        	
                                           Principal

                                        	 	
                                          $150/hour

                                        	 
	
                                          NaOH

                                        	 	$	2,675,932.00	 	 	 	 	 	 
      	 	 	 	 	 
      	
                                           Engineer

                                        	 	
                                          $120/hour

                                        	 
	
                                          H2SO4

                                        	 	$	787,664.00	 	 	 	 	 	 
      	 	 	 	 	 
      	
                                           Operator

                                        	 	
                                          $90/hour

                                        	 
	
                                          Softener

                                        	 	$	290,277.00	 	 	 	 	 	 
      	 	 	 	 	 
      	
                                           Maintenance

                                        	 	
                                          $90/hour

                                        	 
	
                                          coag/flocc

                                        	 	$	471,338.00	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          AS
      disposal

                                        	 	$	1,355,589.00	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          GRAND
      TOTAL

                                        	 	$	27,132,680.00	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          ASSUMPTIONS

                                        	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 
      	 
      	 	 	 	 
	
                                          Three
      Phases: design/engineering, equipment supply and
operations

                                        	 
	
                                          Firm-Fixed
      Price Contract (plus certain pass-thru costs during
    operation)

                                        	 
	
                                          DEP
      will contract directly for cake storage interior demo, reconstruction
      and remediation; these are not in ThermoEnergy's scope

                                        	 
	
                                          Project
      management fee will be applied across the project. It is expected
      that DEP will not incur any additional PM fees other than the initial
      payment for the contract duration

                                        	 
	 	 
	      
                                          NOTES

                                        	 
	      
                                          1Project
      Management Fee payable upon Notice to Proceed

                                          
                                            2Construction
      Management payable upon start of DEP construction
      contract

                                          

                                          
                                            3Installation
      management, labor, and contractor fees payable upon completion of the DEP
      contract and the building ready to accept the Company's ARP
      equipment

                                          

                                        	 
	 	 
	 	 
	 	 
	
                                          DEP
      procurement of General Contractor and Wicks’ Contractors will take 15
      months

                                        	 
	
                                          Construction
      of building interior and balance of plant will take 10
    months

                                        	 
	
                                          Construction
      will last 18 months

                                        	 
	
                                          Construction
      Coordination will last 18 months

                                        	 
	
                                          Operations
      will last 12 months

                                        	 	
                                          rev
      October 21, 2009

                                        	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                SUMMARY EQUIPMENT
      INFORMATION FOR 26TH WARD NYC DEP ARP - 100709

              	 
      
	
                February
      22,2010

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ITEM

              	
                QTY

              	
                TAG

              	
                DESCRIPTION

              	
                MANUFACTURER

              	
                MODEL
      NUMBER

              	 
      
	
                1A

              	
                2

              	
                AE-01

              	
                Ammonia
      analyzer

              	
                AMTAX
      - Hach

              	
                61584-00

              	 
      
	
                1B

              	
                2

              	
                SMP-01

              	
                Metered
      sampling system

              	
                INSO

              	
                6712

              	 
      
	
                2

              	
                2

              	
                BDS-01

              	
                Bulk
      discharge system

              	
                SacMaster

              	
                604M
      DHL

              	 
      
	
                3

              	
                2

              	
                PMS-01

              	
                Polymer
      make up system

              	
                Polyblend

              	
                PB
      100-1.0

              	 
      
	
                4

              	
                2

              	
                DAF-01

              	
                Dissolved
      Air Floatation

              	
                ECOLAB
      - Krofta

              	
                MFV-500

              	 
      
	
                5

              	
                2

              	
                PT-01

              	
                Differential
      Pressure Trnsmtr

              	
                Foxboro

              	
                IDP10

              	 
      
	
                6

              	
                2

              	
                P-04

              	
                Centrifugal
      pump

              	
                G&L
      by Goulds

              	
                24SH
      1-1/2 X 2-1/2 - 10

              	 
      
	
                7

              	
                2

              	
                P-05

              	
                Centrifugal
      pump

              	
                G&L
      by Goulds

              	
                23SH
      3 X4 - 8

              	 
      
	
                8

              	
                2

              	
                ADT-1

              	
                Air
      dissolving tube

              	
                ECOLAB
      - Krofta

              	
                ADT-500

              	 
      
	
                9

              	
                2

              	
                SCS-01

              	
                Sludge
      Scraper

              	
                ECOLAB
      - Krofta

              	
                SAF67
      & DT80K4

              	 
      
	
                10

              	
                2

              	
                COM-1

              	
                Air
      compressor

              	
                Ingersoll
      Rand

              	
                UP6-7TAS-210

              	 
      
	
                11

              	
                2

              	
                VFD-1

              	
                Variable
      Frequency Drive

              	
                Rockwell
      Automation

              	
                PowerFlex
      40P

              	 
      
	
                12

              	
                2

              	
                P-06

              	
                Sludge
      Pump

              	
                Sandpiper

              	
                HDB2-A
      - DS-3-CI

              	 
      
	
                13

              	
                2

              	
                P-02A&B

              	
                Chemical
      metering pumps

              	
                LMI

              	
                B74-1-313SI

              	 
      
	
                14

              	
                2

              	
                TK-01A&B

              	
                Tank

              	
                Synder

              	
                5830000N--L

              	 
      
	
                15

              	
                2

              	
                TK-02

              	
                Tank

              	
                Chemtainer

              	
                R363630AB/CD

              	 
      
	
                16

              	
                2

              	
                TK-03

              	
                Tank
      -See DAF-01

              	
                ECOLAB
      - Krofta

              	
                MFV-500

              	 
      
	
                17

              	
                2

              	
                FM-01

              	
                Flow
      meter

              	
                Foxboro

              	
                8003A-WCI-PJGFGZ-A

              	 
      
	
                18

              	
                2

              	
                PG-001

              	
                Pressure
      gage

              	
                Wika

              	
                Type
      23X.34

              	 
      
	
                19

              	
                2

              	
                ROT-01

              	
                Rotometer

              	
                King
      or equal

              	
                7530

              	 
      
	
                20

              	
                2

              	
                LT-001

              	
                Level
      transmitter

              	
                Sitrans

              	
                LC-300

              	 
      
	
                21

              	
                2

              	
                LT-002

              	
                Level
      transmitter

              	
                Sitrans

              	
                LC-300

              	 
      
	
                22

              	
                2

              	
                TK-04

              	
                Brine
      Tank

              	
                Culligan
      or equal

              	
                N/A

              	 
      
	
                23

              	
                2

              	
                PE-02

              	
                Pressure
      Transmitter

              	
                Rosmount

              	
                2051L

              	 
      
	
                24

              	
                10

              	
                SFT-1A-E

              	
                Water
      Softener

              	
                Culligan
      or equal

              	
                Hy-Flo
      50

              	 
      
	
                25

              	
                2

              	
                AE-02

              	
                Ammonia
      analyzer

              	
                AMTAX
      - Hach

              	
                61584-00

              	 
      
	
                26

              	
                2

              	
                HS-01

              	
                Hardness
      analzyer

              	
                HACH

              	
                SP  510

              	 
      
	
                27

              	
                1

              	
                BRN-01

              	
                Brine
      Maker

              	
                Desing
      Tanks

              	
                50
      Ton

              	 
      
	
                28

              	
                2

              	
                P-13A&B

              	
                Centrifugal
      pump

              	
                Griswold
      or equal

              	
                811S
      3x2x6-1750

              	 
      
	
                29

              	
                2

              	
                FE-03A&B

              	
                Flow
      Transmitter

              	
                Signet

              	
                2537

              	 
      
	
                30

              	
                2

              	
                FE-02

              	
                Flow
      Transmitter

              	
                Signet

              	
                2537

              	 
      
	
                31

              	
                2

              	
                CF01A&B

              	
                Cartridge
      Filters

              	
                FSI
      or equal

              	
                FSCN2740B015

              	 
      
	
                32

              	
                2

              	
                UV-01A&B

              	
                UV
      Sterilizer

              	
                Trojan
      or equal

              	
                STD
      UVSwift 12E

              	 
      
	
                33

              	
                2

              	
                PE-03&04

              	
                Pressure
      Transmitter

              	
                Rosmount

              	
                2090P

              	 
      
	
                34

              	
                A/R

              	
                Mutiple
      Ref.

              	
                Butterfly
      Valve

              	
                Keystone-Tyco

              	
                221/222

              	 
      
	
                35

              	
                1

              	
                pH-01

              	
                pH
      meter

              	
                Mettler
      Toledo

              	
                770MAX

              	 
      
	
                36

              	
                A/R

              	
                Mutiple
      Ref.

              	
                Flow
      transmitter

              	
                Signet

              	
                8550/2536

              	 
      
	
                37

              	
                A/R

              	
                Mutiple
      Ref.

              	
                Conductivity
      meter

              	
                Mettler
      Toledo

              	
                770MAX

              	 
      
	
                38

              	
                3

              	
                P-20A-C

              	
                Boiler
      Pumps

              	
                Grundfos

              	
                CR9022AGAEKUBE

              	 
      
	
                39

              	
                2

              	
                Boiler-1&2

              	
                Boilers

              	
                Cleaver
      Brooks

              	
                CB-LE-250

              	 
      
	
                40

              	
                3

              	
                P-19A-C

              	
                Cooling
      water pump

              	
                Goulds-ITT

              	
                3656

              	 
      
	
                41

              	
                2

              	
                COM-02A&B

              	
                Air
      Compressor

              	
                Ingersol
      Rand

              	
                DRW
      NO. 22063374

              	 
      
	
                42

              	
                3

              	
                FMSC-01A,
      B &C

              	
                Fume
      Scrubber

              	
                Tri-Mer

              	
                F/S
      1/4 DP

              	 
      
	
                43

              	
                8

              	
                RCAST-01
      - 08

              	
                Vacuum
      Flash ARP Systems

              	
                CASTion
      Inc.

              	
                N/A

              	 
      
	
                44

              	
                4

              	
                CAST
      - 01 - 04

              	
                Flash
      Distillation Systems

              	
                CASTion
      Inc.

              	
                N/A

              	 
      
	
                45

              	
                6

              	
                TK-05
      A-F

              	
                12,500
      gal Am. Sulfate Tanks

              	
                TBD

              	
                N/A

              	 
      
	
                46

              	
                4

              	
                TK-06
      A-C

              	
                5,000
      gal Sulfuric Acid Tanks

              	
                TBD

              	
                N/A

              	 
      
	
                47

              	
                4

              	
                TK-07
      A-C

              	
                5,000
      gal pH Adjust Tanks

              	
                TBD

              	
                N/A

              	 
      
	
                48

              	
                4

              	
                TK-08
      A-C

              	
                5,000
      gal Centrate Tanks

              	
                TBD

              	
                N/A

              	 
      
	
                49

              	
                4

              	
                TK-09
      A-C

              	
                5,000
      gal NaOH Tanks

              	
                TBD

              	
                N/A

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ThermoEnergy
      reserves the right to substitute and/or modify the proposed
      equipment.

              	 
      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	
                SUMMARY SPARE PARTS
      INFORMATION FOR 26TH WARD NYC DEP ARP

              	 
      	 
      
	 
      	 
      
	
                ITEM

              	
                QTY

              	
                TAG

              	
                DESCRIPTION

              	
                MANUFACTURER

              	 
      	 
      
	
                1

              	
                1

              	
                AE-01

              	
                Ammonia
      analyzer

              	
                AMTAX
      - Hach

              	 
      	 
      
	
                2

              	
                1

              	
                SMP-01

              	
                Metered
      sampling system

              	
                INSO

              	 
      	 
      
	
                3

              	
                2

              	
                PT-01

              	
                Differential
      Pressure Trnsmtr

              	
                Foxboro

              	 
      	 
      
	
                4

              	
                1

              	
                P-04

              	
                Centrifugal
      pump

              	
                G&L
      by Goulds

              	 
      	 
      
	
                5

              	
                1

              	
                P-05

              	
                Centrifugal
      pump

              	
                G&L
      by Goulds

              	 
      	 
      
	
                6

              	
                1

              	
                VFD-1

              	
                Variable
      Frequency Drive

              	
                Rockwell
      Automation

              	 
      	 
      
	
                7

              	
                1

              	
                P-06

              	
                Sludge
      Pump

              	
                Sandpiper

              	 
      	 
      
	
                8

              	
                2

              	
                P-02A&B

              	
                Chemical
      metering pumps

              	
                LMI

              	 
      	 
      
	
                9

              	
                2

              	
                FM-01

              	
                Flow
      meter

              	
                Foxboro

              	 
      	 
      
	
                10

              	
                6

              	
                PG-001

              	
                Pressure
      gage

              	
                Wika

              	 
      	 
      
	
                11

              	
                2

              	
                ROT-01

              	
                Rotometer

              	
                King
      or equal

              	 
      	 
      
	
                12

              	
                2

              	
                LT-001

              	
                Level
      transmitter

              	
                Sitrans

              	 
      	 
      
	
                13

              	
                2

              	
                PE-02

              	
                Pressure
      Transmitter

              	
                Rosmount

              	 
      	 
      
	
                14

              	
                1

              	
                SFT-1A-E

              	
                Softener
      valve and controls

              	
                Culligan
      or equal

              	 
      	 
      
	
                15

              	
                2

              	
                HS-01

              	
                Hardness
      analzyer

              	
                HACH

              	 
      	 
      
	
                16

              	
                1

              	
                P-13A&B

              	
                Centrifugal
      pump

              	
                Griswold
      or equal

              	 
      	 
      
	
                17

              	
                2

              	
                FE-03A&B

              	
                Flow
      Transmitter

              	
                Signet

              	 
      	 
      
	
                18

              	
                1

              	
                CF01A&B

              	
                Cartridge
      Filter Housing

              	
                FSI
      or equal

              	 
      	 
      
	
                19

              	
                2

              	
                PE-03&04

              	
                Pressure
      Transmitter

              	
                Rosmount

              	 
      	 
      
	
                20

              	
                A/R

              	
                Mutiple
      Ref.

              	
                Valves

              	
                Keystone-Tyco

              	 
      	 
      
	
                21

              	
                1

              	
                pH-01

              	
                pH
      meter

              	
                Mettler
      Toledo

              	 
      	 
      
	
                22

              	
                2

              	
                Mutiple
      Ref.

              	
                Flow
      transmitter

              	
                Signet

              	 
      	 
      
	
                23

              	
                2

              	
                Mutiple
      Ref.

              	
                Conductivity
      meter

              	
                Mettler
      Toledo

              	 
      	 
      
	
                24

              	
                1

              	
                P-20A-C

              	
                Boiler
      Pumps

              	
                Grundfos

              	 
      	 
      
	
                25

              	
                1

              	
                P-19A-C

              	
                Cooling
      water pump

              	
                Goulds-ITT

              	 
      	 
      
	
                26

              	
                1

              	 
      	
                PLC,
      BP, PS and cards

              	
                AB-Rockwell

              	 
      	 
      
	
                27

              	
                A/R

              	 
      	
                Hardware

              	 
      	 
      	 
      
	
                28

              	
                A/R

              	 
      	
                Orings,
      gaskets, seals

              	 
      	 
      	 
      
	
                29

              	
                A/R

              	 
      	
                Piping
      and fittings

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                SUMMARY CRITICAL PARTS
      INFORMATION FOR 26TH WARD NYC DEP ARP

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                ITEM

              	
                QTY

              	
                TAG

              	
                DESCRIPTION

              	
                MANUFACTURER

              	 
      
	
                1

              	
                1

              	
                UV-01A&B

              	
                UV
      Sterilizer

              	
                Trojan
      of equal

              	 
      
	
                2

              	 
      	
                RCAST
      units:

              	
                Vacuum
      Flash ARP Systems

              	
                CASTion
      Inc.

              	 
      
	
                3

              	
                1

              	 
      	
                Main
      Circulation pump

              	
                CASTion
      Inc.

              	 
      
	
                4

              	
                1

              	 
      	
                Vacuum
      pump

              	
                CASTion
      Inc.

              	 
      
	
                5

              	
                1

              	 
      	
                Heat
      exchanger

              	
                CASTion
      Inc.

              	 
      
	
                6

              	
                1

              	 
      	
                Condenser

              	
                CASTion
      Inc.

              	 
      
	
                7

              	
                1

              	 
      	
                Spray
      Nozzle

              	
                CASTion
      Inc.

              	 
      
	
                8

              	
                1

              	 
      	
                Sight
      glass/level controls

              	
                CASTion
      Inc.

              	 
      
	
                9

              	
                1

              	 
      	
                Valve
      kit

              	
                CASTion
      Inc.

              	 
      
	
                10

              	
                1

              	 
      	
                Venturi

              	
                CASTion
      Inc.

              	 
      
	
                11

              	
                1

              	 
      	
                Electrical
      panel kit

              	
                CASTion
      Inc.

              	 
      
	
                12

              	
                1

              	 
      	
                Process
      Vessel

              	
                CASTion
      Inc.

              	 
      
	 
      	 
      	
                CAST
      units:

              	
                Flash
      Distillation Systems

              	
                CASTion
      Inc.

              	 
      	 
      
	
                13

              	
                1

              	 
      	
                Main
      Circulation pump

              	
                CASTion
      Inc.

              	 
      
	
                14

              	
                1

              	 
      	
                Vacuum
      pump

              	
                CASTion
      Inc.

              	 
      
	
                15

              	
                1

              	 
      	
                Heat
      exchanger

              	
                CASTion
      Inc.

              	 
      
	
                16

              	
                1

              	 
      	
                Condenser

              	
                CASTion
      Inc.

              	 
      
	
                17

              	
                1

              	 
      	
                Spray
      Nozzle

              	
                CASTion
      Inc.

              	 
      
	
                18

              	
                1

              	 
      	
                Sight
      glass/level controls

              	
                CASTion
      Inc.

              	 
      
	
                19

              	
                1

              	 
      	
                Valve
      kit

              	
                CASTion
      Inc.

              	 
      
	
                20

              	
                1

              	 
      	
                Venturi

              	
                CASTion
      Inc.

              	 
      
	
                21

              	
                1

              	 
      	
                Electrical
      panel kit

              	
                CASTion
      Inc.

              	 
      
	
                22

              	
                1

              	 
      	
                Process
      Vessel

              	
                CASTion
      Inc.

              	 
      
	
                23

              	
                A/R

              	
                SFT-1A-E

              	
                Water
      Softener Components

              	
                Culligan
      or equal

              	 
      
	
                24

              	
                A/R

              	
                DAF-01

              	
                DAF
      components

              	
                ECOLAB
      - Krofta

              	 
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    February
22, 2010

    Attachment
6

    Design
Deliverables

    

    

    ThermoEnergy
will provide DEP with biddable construction specifications for the demolition
and rehabilitation of the Cake Storage Building for the installation of the ARP
equipment. At the 30% Design, ThermoEnergy will provide DEP with a set of
drawings and key specifications that represent all of the major project concepts
accompanied by a Preliminary Design Report that provides narrative to support
the key decisions. In the 30% Design, ThermoEnergy will conduct the necessary
calculations and evaluations and solicit stakeholder feedback to develop final
layouts, design criteria, and requirements of the scope items identified in the
Basis of Design Report. The preliminary design provides the necessary review,
validation, and vetting of the scope items and concepts identified in the Basis
of Design Report and reflects final agreement by all stakeholders of the
fundamental design elements.

    

    The key
deliverables in ThermoEnergy’s 30% Design Package include the
following:

    

    
      	
            	
              ü

            	
              Complete
      Drawing List

            

    

    

    
      	
            	
              ü

            	
              Design
      Drawings (Advanced P&ID, Civil, Architectural, and Mechanical
      Disciplines; Basic Plan and Profile, Electrical, HVAC, and Structural
      Disciplines)

            

    

    

    
      	
            	
              ü

            	
              Final
      Hydraulic or Hydrologic Modeling

            

    

    

    
      	
            	
              ü

            	
              Final
      Hydraulic Profile, Process, and Major Equipment
    Calculations

            

    

    

    
      	
            	
              ü

            	
              Specifications
      Table of Contents, Specifications Not Included List, and Manufacturer’s
      List

            

    

    

    
      	
            	
              ü

            	
              Draft
      Specifications for Major Items (major equipment, pipe,
      concrete)

            

    

    

    
      	
            	
              ü

            	
              Preliminary
      Control Narratives (or Strategies)

            

    

    

    
      	
            	
              ü

            	
              Final
      Geotechnical Report

            

    

    

    
      	
            	
              ü

            	
              Final
      EAS or EIS

            

    

    

    
      	
            	
              ü

            	
              Final
      Hazard Investigations (asbestos, lead, mercury,
  etc.)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              ü

            	
              Final
      Construction Schedule incorporating all required sequencing, shutdowns,
      and scheduling constraints to allow construction while maintaining
      operations.

            

    

    

    
      	
            	
              ü

            	
              Final
      Permit List (for Approval by Permit Resource
  Division)

            

    

    

    
      	
            	
              ü

            	
              Calculations
      Log

            

    

    

    
      	
            	
              ü

            	
              Updated
      Engineer’s Estimate

            

    

    

    
      	
               
      

            	
              ü

            	
              Quality
      Checklists

            

    

    

    

    At 60%
Design ThermoEnergy will provide a “progress” set of drawings and specifications
between the 30% Design and 90% Design.

    

    The key
deliverables in ThermoEnergy’s 60% Design Package include the
following:

    

    
      	
               
      

            	
              ü

            	
              Design
      Drawings (Nearly complete Instrumentation, Civil, Mechanical and
      Architectural Drawings, Advanced Plan and Profile, Structural, HVAC,
      Electrical, Plumbing and Fire Protection
  Drawings)

            

    

    

    
      	
               
      

            	
              ü

            	
              Final
      Acoustical, Traffic Control, Corrosion Control, and Other Technical Plans
      and Reports

            

    

    

    
      	
               
      

            	
              ü

            	
              Draft
      Specifications for all Divisions, Specifications Not Included List, and
      Manufacturer’s List

            

    

    

    
      	
               
      

            	
              ü

            	
              Final
      Calculations for all equipment and
piping

            

    

    

    
      	
               
      

            	
              ü

            	
              Calculations
      Log

            

    

    

    
      	
               
      

            	
              ü

            	
              Updated
      Engineer’s Estimate

            

    

    

    
      	
               
      

            	
              ü

            	
              Quality
      Checklists

            

    

    

    At 90%
Design ThermoEnergy will provide DEP with its best representation of completed
drawings and specifications including resolution and incorporation of all
comments submitted during the 60% Design review.

    

    The key
deliverables in ThermoEnergy’s 90% Design Package include the
following:

    

    
      	
               
      

            	
              ü

            	
              Final
      Draft Design Drawings (all sheets for all
  disciplines)

            

    

    

    
      	
               
      

            	
              ü

            	
              Final
      Draft Specifications for all Divisions, Specifications Not Included List,
      and Manufacturer’s List

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
               
      

            	
              ü

            	
              Final
      Calculations Log

            

    

    

    
      	
               
      

            	
              ü

            	
              Final
      Engineer Estimate

            

    

    

    
      	
               
      

            	
              ü

            	
              Quality
      Checklists

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    The 100%
Design represents the DEP’s completed drawings and specifications including
resolution and incorporation of all comments submitted during the 90% Design
review.

    

    The
key deliverables in the 100% Design Package include the following:

    

    
      	
            	
              ü

            	
              Final
      Signed Design Drawings (all sheets for all
  disciplines)

            

    

    

    
      	
            	
              ü

            	
              Final
      Specifications for all Divisions, Specifications Not Included List, and
      Manufacturer’s List

            

    

    

    
      	
            	
              ü

            	
              Final
      Engineer Estimate

            

    

    

    
      	
            	
              ü

            	
              Final
      EOR Quality Certification FormExhibit
4.9

     

    THIRD
AMENDMENT AGREEMENT TO THE

     

    SIMPLE
CREDIT OPENING AGREEMENT

    UP TO AN
AMOUNT EQUIVALENT IN PESOS, MEXICAN

    CURRENCY,
TO THE SUM OF US$21'000,000.00,

    DATED MAY
16, 2006

     

    executed
by and between

     

    Grupo
Radio Centro, S.A.B. de C.V.,

    as
Borrower;

     

    Radio
Centro Publicidad, S.A. de C.V.,

    GRC
Publicidad, S.A. de C.V.,

    GRC
Medios, S.A. de C.V.,

    GRC
Comunicaciones, S.A. de C.V.,

    as Joint
Obligors;

     

    Desarrollos
Empresariales, S.A. de C.V.,

    Radiodifusión
Red, S.A. de C.V.,

    Inmobiliaria
Radio Centro, S.A. de C.V., and

    Universal
de Bienes Muebles e Inmuebles, S.A. de C.V.,

    as
Guarantors

     

    and

     

    Banco
Inbursa, S.A., Institución de Banca Múltiple,

    Grupo
Financiero Inbursa,

    as
Lender

     

    May 14,
2009.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    THIRD AMENDMENT AGREEMENT to
the Simple Credit Opening Agreement dated May 16, 2006 (the “Amendment
Agreement”), executed by and between Grupo Radio Centro, S.A.B. de C.V.,
as Borrower, Radio Centro Publicidad, S.A. de C.V., GRC Publicidad, S.A. de
C.V., GRC Medios, S.A. de C.V. and GRC Comunicaciones, S.A. de C.V., as Joint
Obligors, Desarrollos Empresariales, S.A. de C.V., Radiodifusión Red, S.A. de
C.V., Inmobiliaria Radio Centro, S.A. de C.V. and Universal de Bienes Muebles e
Inmuebles, S.A. de C.V., as Guarantors, and Banco Inbursa, S.A., Institución de
Banca Múltiple, Grupo Financiero Inbursa, as Lender, pursuant to the following
antecedents, representations and articles:

     

    ANTECEDENTS

     

    
      	
              I.

            	
              On
      May 16, 2006, Grupo Radio Centro, S.A.B. de C.V. (the “Borrower”), GE
      Capital CEF México, S. de R.L. de C.V. and Banco Inbursa, S.A.,
      Institución de Banca Múltiple, Grupo Financiero Inbursa (the “Lenders”),
      executed a Simple Credit Opening Agreement (the “Loan
      Agreement”) under which, among other things, the Lenders agreed to
      make available to the Borrower an amount equivalent in Pesos, Mexican
      currency, to the sum of US$21'000,000.00
  Dollars.

            

    

     

    
      	
              II.

            	
              On
      May 16, 2008, Grupo Radio Centro, S.A.B. de C.V., GE Capital CEF México,
      S. de R.L. de C.V. and the Lender executed an Amendment Agreement to the
      Loan Agreement (the “First Amendment Agreement”), under which they
      extended the date of disbursement thereof to June 16,
  2008.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              III.

            	
              On
      June 04, 2008, Grupo Radio Centro, S.A.B. de C.V., GE Capital CEF México,
      S. de R.L. de C.V. and the Lender executed a Second Amendment Agreement to
      the Loan Agreement, under which several conditions of the Loan Agreement
      and of the First Amendment Agreement were amended (the “Second Amendment
      Agreement”).

            

    

     

    
      	
              IV.

            	
              On
      December 11, 2008, Grupo Radio Centro, S.A.B. de C.V., GE Capital CEF
      México, S. de R.L. de C.V., in its capacity as Borrower, GE Capital CEF
      México, S. de R.L. de C.V., in its capacity as “Assignor”, and Banco
      Inbursa, S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa, in
      its capacity as “Assignee”, executed a Rights Assignment Agreement (the
      “Assignment Agreement”), under which GE Capital CEF México, S. de R.L. de
      C.V., assigned to Banco Inbursa, S.A., Institución de Banca Múltiple,
      Grupo Financiero Inbursa, the rights and obligations under the Loan
      Agreement, the First Amendment Agreement and the Second Amendment
      Agreement.

            

    

     

    Capitalized
terms not defined under this Amendment Agreement shall have the meanings
ascribed to them under the Loan Agreement, the First Amendment Agreement, the
Second Amendment Agreement and the Assignment Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    REPRESENTATIONS

     

    
      	
              I.

            	
              The
      parties to this Amendment Agreement, through their legal representatives,
      hereby state that:

            

    

     

    (a) They
acknowledge and accept each other the capacity in which they execute this
Amendment Agreement and the scope of the authorities and powers of their
representatives.

     

    (b) The
Loan Agreement, the First Amendment Agreement and the Second Amendment Agreement
are in full force and effect on the date of this Amendment
Agreement.

     

    (c) It is
in their best interest to execute this Amendment Agreement in order to amend
certain terms and conditions of the Loan Agreement, the First Amendment
Agreement and the Second Amendment Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d)
Payment or any other obligations of the Borrower under the Loan Agreement, the
First Amendment Agreement and the Second Amendment Agreement are currently
guaranteed by: (1) a first priority mortgage created by Inmobiliaria Radio
Centro, S.A. de C.V. in favor of the Lender on the office building located at
Avenida de Los Constituyentes number 1154, Colonia Lomas Altas, Delegación
Miguel Hidalgo, Mexico City, Federal District, as evidenced in public instrument
number 94,755, dated December 11, 2008, issued by Mr. Francisco José Visoso del
Valle, acting as an associate in the notarial book of Mr. José Visoso del Valle;
and (2) first priority mortgage created by the Borrower and Universal de Muebles
e Inmuebles, S.A. de C.V. in favor of the Lender on the following real
properties: (i) the house located at Artículo Ciento Veintitrés number 90,
Colonia Centro, Delegación Cuauhtémoc, Mexico City, Federal District; (ii) the
real property located at Plutarco Elías Calles number 21, Colonia Granjas
México, Delegación Iztacalco, Mexico City, Federal District; (iii) the real
property located at Constitución de la República number 188, Colonia Ampliación
Providencia, Delegación Gustavo A. Madero, Mexico City, Federal District; (iv)
the real property located at Atenas number 9, Colonia Juárez, Delegación
Cuauhtémoc, Federal District; and (v) the real property located at Avenida
Presidente Juárez, Kilometer 15.5, Tlalnepantla, State of México (the “Mortgaged Real
Properties”), as evidenced in public instrument number 93,023, dated June
04, 2008, issued by Mr. Francisco José Visoso del Valle, acting as an associate
in the notarial book of Mr. José Visoso del Valle (the mortgage guarantees so
created shall be hereinafter referred to as the “Real Properties”);

     

    Pursuant
to the foregoing Antecedents and Representations, the parties hereby bind
themselves pursuant to the following:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    ARTICLES

     

    ONE. Amendments.

     

    
      	
              1.1

            	
              The
      parties hereby agree to amend Article One of the Loan Agreement, so that
      the total amount of US$21'000,000.00 (TWENTY ONE MILLION 00/100 DOLLARS,
      LAWFUL CURRENCY OF THE UNITED STATES OF AMERICA) is divided
      into:

            

    

     

    
      	
            	
              A)

            	
              The
      amount of US$14'000,000.00 (FOURTEEN MILLION 00/100 DOLLARS, LAWFUL
      CURRENCY OF THE UNITED STATES OF AMERICA) or the equivalent thereof in
      Pesos, Mexican currency, hereinafter referred to as Tranche
      "A".

            

    

     

    
      	
            	
              B)

            	
              The
      amount of US$7'000,000.00 (SEVEN MILLION 00/100 DOLLARS, LAWFUL CURRENCY
      OF THE UNITED STATES OF AMERICA) or the equivalent thereof in Pesos,
      Mexican currency, hereinafter referred to as Tranche
  “B”.

            

    

     

    Tranche
“A” referred to in this Agreement is not a revolving credit, that is, when each
disbursement is paid, the sum of the Loan Agreement shall not be reestablished
in whole or in part and Tranche “B” referred to in this Agreement is a revolving
credit, that is, when any disbursement is paid, the sum of the Loan Agreement
shall be reestablished in whole or in part.

     

    Whenever
the term Loan Agreement is used in this instrument, it shall be deemed to
comprise jointly Tranche “A” and Tranche “B”.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              1.2

            	
              The
      parties hereby agree to amend Article Two of the Loan Agreement, so that
      Tranche “B” is be able to disburse again any amounts that shall have been
      paid and the authorization of the Borrower is not required to disburse
      them, as long as it is in compliance with its obligations under the Loan
      Agreement, the First Amendment Agreement, the Second Amendment Agreement
      and this Amendment Agreement.

            

    

     

    
      	
              1.3

            	
              The
      parties hereby agree to amend Article Three of the Loan Agreement, so
      that, regarding Tranche “B”, the funds shall be earmarked to cover cash or
      working capital needs.

            

    

     

    
      	
              1.4

            	
              The
      parties hereby agree to amend Article Six of the Loan Agreement, provided
      that the applicable rate shall be: i) for Tranche “A”, the difference that
      must be added to the TIIE Rate to calculate the Interest Rate under the
      Loan Agreement shall be increased to 5.5 (five point five) percentage
      points. Due to the foregoing, the definition of Interest Rate for Tranche
      “A” must be understood as the TIIE Rate plus 5.5 (five point five)
      percentage points; ii) for Tranche “B”, the rate and method of payment of
      interest individually agreed in each Promissory Note upon the terms of the
      Loan Agreement, the First Amendment Agreement and the Second Amendment
      Agreement; or iii) for both Tranches, the fixed rate agreed in each
      Promissory Note. The provisions of this paragraph shall be applicable both
      to the Interest Rate and to the Substitute Interest
  Rate.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    The
interest rate on the disbursements made under the Loan Agreement, the First
Amendment Agreement and the Second Amendment Agreement may be revised and
adjusted pursuant to the individual provisions of each Promissory Note, except
in such cases when a fixed rate is established.

     

    The mere
subscription of the Promissory Notes evidencing the provisions of the Loan
Agreement by the Borrower shall imply the acceptance and agreement to the rate
and method of payment of interest set forth therein.

     

    In the
event that the instruments stated in the Promissory Notes as reference to
establish the ordinary interest rate disappear in whole without being
substituted, the parties hereby agree to substitute the corresponding Promissory
Notes within 5 (five) Business Days of such event or, otherwise, the
acceleration of this instrument and of the corresponding Promissory Notes shall
occur, except in the case of a fixed rate.

     

    The
Borrower hereby accepts any amendments that may result based on the foregoing
without prior notice and without an Amendment Agreement being executed in each
case.

     

    The
computation of both ordinary and default interest provided in the following
Article shall be accrued on a 360 (three hundred and sixty) day-year basis and
the actual number of days elapsed.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              1.5

            	
              The
      parties hereby agree to amend Article Eight as follows: i) item 8.6 of the
      Loan Agreement, so that the Borrower does not make any mandatory
      prepayment for the transfer referred to in item 1.7 of this Amendment
      Agreement, provided that it must accrue no commission for prepayment; and
      ii) item 8.7 of the Loan Agreement, so that the Real Estate Guarantee
      Coverage Ratio (as defined under the Loan Agreement) of the Borrower is
      not less than 1.5 (one point five) to 1 (one) without computing the Real
      Properties which release is requested by the Borrower in the calculation
      of such Ratio. The parties hereby agree that such releases may only and
      exclusively be made on a yearly basis, on the anniversary of the date of
      disbursement or the Loan Agreement, on which date the Real Estate
      Guarantee Coverage Ratio (as defined in the Loan Agreement) shall be
      calculated based on the last appraisal made upon the terms of this
      Agreement.

            

    

     

    
      	
              1.6

            	
              The
      parties hereby agree to amend Article Nine, item 9.2, subparagraph n) of
      the Loan Agreement, so that the appraisal value of the Real Properties is
      not less than the Inbursa Commitment amount (as such term is defined under
      the Loan Agreement) multiplied by 1.5 (one point
  five).

            

    

     

    
      	
              1.7

            	
              The
      parties hereby agree to amend Article Fifteen, item 15.4 of the Loan
      Agreement, so that the Borrower may transfer up to 75% (seventy-five
      percent) of its corporate interest in the capital stock, solely and
      exclusively with respect to its subsidiary, Grupo Radio Centro LA, LLC, in
      the United States of America.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    TWO. Joint
Obligation. The Joint Obligors hereby ratify that they jointly bind
themselves and become Joint Obligors of the Borrower under the Loan Agreement,
the First Amendment Agreement, the Second Amendment Agreement and the other Loan
Documents and participate in the execution of this Amendment Agreement to
become, and they indeed become, Joint Obligors of the Borrower vis-à-vis the
Lender, upon the terms of Articles one thousand nine hundred and eighty-seven,
one thousand nine hundred and eighty-eight and one thousand nine hundred and
eighty-nine and other applicable Articles of the Federal Civil Code and their
correlative Articles of the other Civil Codes for the Mexican Republic;
therefore, they shall be absolutely and unconditionally liable for the full and
timely payment of each and all the obligations of the Borrower under the Loan
Agreement and other documentation related thereto. For such purposes, the
obligations derived from the Loan Agreement are deemed to be indivisible;
therefore, the Joint Obligors are liable for all the extended credit. Likewise,
the Joint Obligors agree to subscribe the Promissory Notes as guarantors
(aval).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    The Joint
Obligors hereby accept and agree that any right or action they may have against
the Borrower, whether by virtue of the Loan Agreement, the First Amendment
Agreement and the Second Amendment Agreement or otherwise, shall be subordinated
to all the rights and actions of the Lender against the Borrower or pursuant to
the provisions hereof. Likewise, the Joint Obligors hereby expressly agree with
the Lender not to exercise the collection rights or any other actions that may
correspond to them against the Borrower until the Lender shall have received the
full payment of the obligations of the Borrower under the Loan Agreement, the
First Amendment Agreement and the Second Amendment Agreement.

     

    By virtue
of the foregoing, whenever reference is made to the “Joint Obligors” in the Loan
Agreement, the First Amendment Agreement, the Second Amendment Agreement and the
other Loan Documents, the parties hereby agree that such term shall include
Radio Centro Publicidad, S.A. de C.V., GRC Publicidad, S.A. de C.V., GRC Medios,
S.A. de C.V., and GRC Comunicaciones, S.A. de C.V., which hereby undertake all
the rights and obligations of the Joint Obligors under the Loan Agreement, the
First Amendment Agreement, the Second Amendment Agreement and the Loan
Documents.

     

    Likewise,
the Joint Obligors hereby authorize the Lender, upon the terms of Article
Twenty-Seven of the Agreement, to take the actions provided by such
Article.

     

    THREE. Term. No
Novation. The
parties hereby agree that the Loan Agreement, the First Amendment Agreement and
the Second Amendment Agreement have been specifically amended by this Amendment
Agreement, and continue in full force and effect. All the provisions of the Loan
Agreement, the First Amendment Agreement and the Second Amendment Agreement not
expressly amended by the execution of this Amendment Agreement shall continue in
full force.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    The
parties to this Amendment Agreement hereby acknowledge and agree that the
amendment contained herein does not constitute a novation of the obligations
contemplated by the Loan Agreement, the First Amendment Agreement and the Second
Amendment Agreement.

     

    FOUR. Applicable
Law and Jurisdiction.
The parties hereby agree that for the construction and performance of
this Amendment Agreement, Mexican law shall be applicable and the parties
irrevocably submit themselves to the jurisdiction of the competent courts for
Mexico City, Federal District, to hear any controversy that may arise by virtue
of the construction or performance of this Amendment Agreement, for which
purpose the parties hereby waive any jurisdiction that may correspond to them by
reason of their present or future domiciles.

     

    [Signature
pages of this Amendment Agreement]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto execute this Amendment Agreement in Mexico City, Federal
District, on May 14, 2009, in 3 (three) original counterparts. Two original
counterparts shall remain with the Borrower (and the Joint Obligors and the
Guarantors), and one original counterpart shall remain with the
Lender.

     

    THE
BORROWER

     

    Grupo
Radio Centro, S.A.B. de C.V.

     

    
      
        
          
            
              
                
                  	 
      /s/ Ana María
      Aguirre Gómez	 
      	  /s/ María Esther
      Aguirre Gómez
	
                          By:
      Ana María Aguirre Gómez

                        	 
      	
                          By:
      María Esther Aguirre Gómez

                        
	
                          Title:
      Attorney-in-fact

                        	 
      	
                          Title:
      Attorney-in-fact

                        
	 
      	 
      	 
      
	  /s/ Carlos de
      Jesús Aguirre Gómez	 
      	  /s/ José Manuel
      Aguirre Gómez
	
                          By:
      Carlos de Jesús Aguirre Gómez (also

                        	 
      	
                          By:
      José Manuel Aguirre Gómez

                        
	
                          known
      as Carlos Aguirre Gómez)

                        	 
      	
                          Title:
      Attorney-in-fact

                        
	
                          Title:
      Attorney-in-fact

                        	 
      	 
      

                

              

            

          

        

      

    

     

    THE JOINT
OBLIGORS

     

    Radio
Centro Publicidad, S.A. de C.V.,

    GRC
Publicidad, S.A. de C.V.,

    GRC
Medios, S.A. de C.V., and

    GRC
Comunicaciones, S.A. de C.V.

     

    
      
        
          
            
              	  /s/ Ana María
      Aguirre Gómez	 
      	  /s/ María Esther
      Aguirre Gómez
	
                      By:
      Ana María Aguirre Gómez

                    	 
      	
                      By:
      María Esther Aguirre Gómez

                    
	
                      Title:
      Attorney-in-fact

                    	 
      	
                      Title:
      Attorney-in-fact

                    

            

          

        

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	 
      /s/ Carlos de
      Jesús Aguirre Gómez	 
      	  /s/ José Manuel
      Aguirre Gómez
	
                      By:
      Carlos de Jesús Aguirre Gómez (also

                    	 
      	
                      By:
      José Manuel Aguirre Gómez

                    
	
                      known
      as Carlos Aguirre Gómez)

                    	 
      	
                      Title;
      Attorney-in-fact

                    
	
                      Title:
      Attorney-in-fact

                    	 
      	 
      

            

          

        

      

       

      THE
GUARANTORS

       

      Desarrollos
Empresariales, S.A. de C.V.,

      Radiodifusión
Red, S.A. de C.V.,

      Inmobiliaria
Radio Centro, S.A. de C.V., and

      Universal
de Bienes Muebles e Inmuebles, S.A. de C.V.

      

      
        
          
            
              
                
                  
                    	 
      /s/ Ana María
      Aguirre Gómez	 
      	  /s/ María Esther
      Aguirre Gómez
	
                            By:
      Ana María Aguirre Gómez

                          	 
      	
                            By:
      María Esther Aguirre Gómez

                          
	
                            Title:
      Attorney-in-fact

                          	 
      	
                            Title:
      Attorney-in-fact

                          
	 	 	 
	  /s/ Carlos de
      Jesús Aguirre Gómez	 
      	  /s/
       José Manuel Aguirre Gómez
	
                            By:
      Carlos de Jesús Aguirre Gómez (also

                          	 
      	
                            By:
      José Manuel Aguirre Gómez

                          
	
                            known
      as Carlos Aguirre Gómez)

                          	 
      	
                            Title:
      Attorney-in-fact

                          
	
                            Title:
      Attorney-in-fact

                          	 
      	 
      

                  

                

              

            

          

        

      

       

      THE
LENDER

      

      Banco
Inbursa, S.A. de C.V., Institución de Banca Múltiple,

      Grupo
Financiero Inbursa

      

      
        
          
            	 
      	
                      /s/ Luis Frías
      Humphrey

                  	 
      
	 
      	
                    By:
      Luis Frías Humphrey

                  	 
      
	 
      	
                    Title:
      Legal Representative

                  	 
      

          

        

      

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    These
signature pages are part of the THIRD AMENDMENT AGREEMENT to the
Simple Credit Opening Agreement dated May 16, 2006 (the “Amendment
Agreement”), executed by and between Grupo Radio Centro, S.A.B. de C.V.,
as borrower, Radio Centro Publicidad, S.A. de C.V., GRC Publicidad, S.A. de
C.V., GRC Medios, S.A. de C.V. and GRC Comunicaciones, S.A. de C.V., as joint
obligors; Desarrollos Empresariales, S.A. de C.V., Radiodifusión Red, S.A. de
C.V., Inmobiliaria Radio Centro, S.A. de C.V., and Universal de Bienes Muebles e
Inmuebles, S.A. de C.V., as guarantors, and Banco Inbursa, S.A., Institución de
Banca Múltiple, Grupo Financiero Inbursa, dated May 14, 2009.

     

    
      
        
        

      

      
        15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]