Effcctivü date frür,¡, (07!0I/t01S) tü' (07/01/2019)


Operations and Maintenance

Management and Operations


by and among

Puerto Rico Highways and Transportation Authority
Autopistas Metropolitanas de Puerto Rico, LLC
Gila, LLC

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EXECUTION COPY _ _ _---'Page 2 of 116
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• Annexure A - General Syslems and Specifications
• Annexure B - Contractor Final Bid Proposal
• Annexure e - Form 01 Parenl Company Guaranlee
• Annexure D - Oplional Services

• Atlachment 1 - Projecl Milestones
• At!achment 2 - $cope 01 Works

• Attachment 1 - Third Party Software
• Attachmen! 2 - General Operations & Maintenance Specilications
• Attachmen! 3 - Contrae! Key Peñormance Indicalors
• Altachment 4 - $ystem and COr'ltraclual Reporting




SERVICES AGREEMENT ........ , ." ............ " _ ,,12

1 CONDITIONS OF CONTRAer .................................................... 12

1.1 Definitions ............ .. ,......... , ___ ....... 12
1.2 lnterpretation .... ,.... ,.... ...27
1.3 Replacement 80dy Interprelation o., _ •••••••••••••••• , ,.. 29
1.4 Contract Business Pay ... _.29
1.5 Order 01 Precedence., ....... ,.... " .. .. . ... 29
1.6 Cosl of Performing Obligations .......... . ,.. 30
17 Agreement Framework................. , _................ , ,... 31
1.8 SelVice Recipien!s ............ . ,... 31
1.9 No Par!nership, Joint Venture or Other Fiduciary Relatiollship ......................... . ..... 32

2 GENERAL OBLIGAT10NSISCOPE OF WORK ................................ 32

2.1 General Responsibilities 01 Con tractor, PRHTA and Metropistas ............... . ............ 32
2.2 COlltracto~s Responsibilities ................ . ..................... 33
2.3 Particular Obligations ....................................................... . ................................. 33
2.4 Tolling System................. . ......... . .................................. 34
2.5 Assistance.......... . .................... . ................................. 34
2.6 Plan! and Equipment ........ . .................. 34
2.7 Acknowledgement by Contractor .. ..35
2.8 Optional Services ....................... . .................. 36

3 ROLE OF PARTIES ................................................................. 36

3.1 PRHTA as an Authority .................................. . ........ 36
3.2 Other Authorilies ................ . ......... 37
3.3 Service Recipient Representative... ............ . . ..... 37
3.4 Con!ractor's Representative ................... . ................ 38
3.5 Acknowledgment 01 Interoperability Agreements .. ........ 38
3.6 Retationship 01 Con!ractor and Service Recipient. .......... . ................ 39

4 EQUIPMENT ..........................................................................39

4.1 Genernlly................. . ................... . .. 39
( 4.2 Equipment Warranly ........... ............. .40

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5.1 Tolling System .............. _ " ........ " ... _ " ..41
5.2 Serviea Recipient IP ......... " ..41
5.3 ContractorlP. __ ........... ,_ ..... .41
5.4 Developed IP o .... _ ......... .. ...42
5.5 Consents, Approvals and Requests ." ... .43
5.6 Use 01 Sarvies Recipiellt's Marks ...... .. ,... .43

6 lNTELLECTUAL PROPERTY ..................................................... 44

6.1 warranties ...... , _." ........... , ............ .. ,.. 44
6.2 Ownership 01 Data ... _.............. .. ." ....... .44
6.3 Correclion ofErrors .......... , _ " ....... .. ,............... _..44
6.4 Data Security and Computer Access......... .............. . ............... _............ . ......... ..45
6.5 PrivacyandPII ................. _ ........................... _............. _ ........... _................ .46
6.6 Regulatory Inlormatlon ............. .............. ............ ......................................... 47
6.7 Information Security Audit ... _............ ........... ................. 47
6.8 Data Security Breaches............ ........... .............. .............. ........................ ..47


7.1 Acknowledgement and Warranties ............ _............. . .... .48
72 Indemnity ...................................... _ ...... 49

8 GENERAL OBLIGA TI ONS ......................................................... 49

6.1 Workplace Health, Safety and Rehabilitation. __ ........... . . ........ .49
8.2 tnteñerence and Nuisance .. _........... . _..49
8.3 Labor and Employment Matlers. ....... 50
8.4 Utilities ........... . ... 50
85 Certification Schedule .. __ ............ __ ............. _........ 51
8.6 Progressive Removat 01 Materials and Make Good __ ............. _ .. 51

9 ACCESS ANO SEPARATE SUBCONTRACTORS ............................ 51

9.1 Access ........ _................ _............ _............ . ...... 51
9.2 Cooperation with Other Subcontractors ............. . .............. _.51
,, 9.3
Condition 01 Land ...... .
Permitted Use ...... _............... _........... .
........ 52
..... 53
9.5 Environmental lssues ... _ ........ 53
9.6 Discovery 01 Contamination .. _ ............. _ ............... .. _............ _ ........~ .. : .... _53

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9.7 Utility Owners .. " _ ....... 54
9.8 Easements" _." ... " ... ................. ,54

10 lTEMS TO BE PROVIDED BY CONTRACTOR ................................ 54

11 SLJSPENS10N , ............•..........•....•...............••. , .............•......... 54

12 TESTlNG .............................................................................. 55


13.1 Generally............... ,' .............. , ,....... 55
13.2 Appointmenl 01 Subcontractors ,...... . ___ 57
13,3 Key Individuals ..... . ..... 58

14 QUALlTY .. , ....... ""', ........... , .. ", ........... """, .. , ........ , .... , .......... , .. ,59

14.1 Generally........ ................. ............. . . ............... 59
14.2 Project Quality Non-Conformance ....... . ............... 60
14.3 Righl lo Enter, Inspect and Test... ....... . . ................ 60
14.4 Certilications ................................ . ..................... 61

15 WARRANTIES •....... """", .......... """" .•....... ,,,"",,,, ......... ",.", ....... 62

15.1 Generally....................................................... . .........62

16 DEFECTS CORRECTION , ....... ,"""", .. , .......... ,,'"", .......... ""', .. " ....... 64

16.1 Service Reoipient's Direction .................... . ........ 64
16,2 Correction of Defect .. . ... 64
16.3 Failure by the Contactor lo Comply with Direction .. .............. 65
16.4 Dispute as lo Defects '. .... ..... ..... .................... . ....... 65

17 PAYnnENT , •• ", ........ "" ••........ "."" •.......... """ .......... """ .•....... 65

17.1 Service Recipient Payment Obligalions....... . ..... 66
17,2 Set-Off ... ................... ............................ . ...... 66
17.3 Final Progress Paymenl Claim and Final Paymenl Claim ...... 66

\ 17.4 Taxes .. ....... 66
17.5 Invoices ........... . ..... . ........... 67
17.6 Credits ... . ......................... 6~
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17.7 No Contractor Evenl 01 Default.._ .. 67
17.8 Wilhholding to Protec! from Loss ,.... 67

18 MAN UF ACTURER'S WARRANTlES ......... "_•..... 0........ 0._ ••• _............ 67

19 CONFIDENTIALITY ..................................................................68

19.1 Generally........... . __ .. 68
19.2 Permitted Disclosure .. .... ,68
19.3 Exclusions ......... . ,,68
19.4 Relum 01 Malerials .... _" ............. 69
19.5 Unaulhorized Acts .. ,... " ................ ,,69
19.6 Unaulhonzed Use, Access or Disclosure ..................... . " ................. ".' ................69
19.7 DISCO and DAVID+ Informalion ......................... . , ••••••••••••••••• , •••• 0 ••••••••••••••••• ,,69

20 GUARANTEES ....................................................................... 69

20.1 Parent Company Guarantee.. ........... . ........69
20.2 Performance Security .......................... . . ...........69

21 lNDEMNJTIES ......................................................................... 70

21.1 Generallndemnity.. . ................. ........................ .................. . ... 70
21.2 Damages Cap .. ... 72
21.3 Exclusions ...................................................... . ... 72
21.4 Calculation 01 Losses; Full Recovery and No Duplicalion. ... 73
21.5 Indemnification by Contractor .... ..74
21.6 Notíce 01 Claims ............. . ... 74
21.7 Defense of Claims ... . ... 74
21.8 Thírd Party Beneficiaries .. ... 75
21.9 No Limitation ......... . . ... 75
21.10 Jointand Severa! Liability....... ........... . .... 75
21.11 Liabilily................... . ........... ................. . ... 75
21.12 Non-Liability 01 Service Recipiant Representatives .... 76

22 INSURANCE .......................................................................... 76

22.1 Workers Compensation ...................... . ..76
22.2 Employer's Liabilily Insurance .. ........ 76
( ..76
22.3 Employee Disability Insurance .....
22.4 Chauffeur Social Security Insurance ...... . ................. 76

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22.5 Liability Insurance. .... ,76
22.6 Duralion ....... ,__ ", ............ . .".,,78
22.7 General Requirements ..... ,........ .. .... .78
22.8 Evidence .. " .... 79
22.9 Generallnsurance Obligations .... .79
22.10 Notices of Polential Claims _ " ... ,79
22.11 Waivsr of Subrogation" .... " .... ,..... ............... ,80

23 PROPERTY DAMAGE .............................................................. 80

23.1 Damage to Tolling Syslem o .... _ " .. ,,80
23.2 Damage lo Third Perty Property ...... . .80

24 TERM AND TERMINATION ........................................................80

24.1 Term ............. ,... , ., ............ 80
24.2 Termination by Service Recipient for Contraelor Breaeh ... ., ......... 81
24.3 Termina!ion by Contrac!or for Serviee Recipient's Breach ,......... . ........ ,.... ,82
24.4 Termination Without Cause ............. ,......... ,... . .... ,....... 83
24.5 Terminalion by Convenienoo ................................ ,....................... . .... ,.............. 83
24.6 Termination for Legal Malfeasance ........ ,... ,.... . .., .................. ,.... ,84
24.7 Terminalion for Deterioration 01 Financial Condition .... , ........... ,... ............. 84
24.8 Termination lor Key Performance Indicator Failure ..... ,.... ,.... ,,85
24.9 Termination for Change in Law .. " ... ,....... ,.. 85
24.10 No Olher Terminalion Rights ........... ,... . .85
24.11 Limitation ....... ,... " ... , . " ... , ....... , .. 85
24.12 Effec!s 01 Termination ., ... . ".85
24.13 Termina!ion Assistance .. . ." .. " ... ,... ,.. 87

25 FORCE MAJEURE .................................................................. 87

25.1 Initial Notioo ...... , . ........... 87
25.2 Particulars ..... ,.. . ." ... ,...... 88
25.3 Continuing Updates .... ,....... ,.. 88
25.4 Meeting ,........ ,... " ,....... 88
25.5 Suspension 01 Obligations .. 88
25.6 Recommencement.. . ........ 89
25.7 Bes! Efforts to Mitigate Ellec!, . ..89
25.8 Alternative Arrangements., .... ,.... " ,... ,... 89
( 25.9 Cessation 01 Force Majeure Event .... ,.... ,.. ,... 89
25.10 No Financial Relielto Contrac!or ." ... ,... ,... 89
25.11 Termination for Force Majeure .. ... ~
.................... 89
.... iJI'{Y
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25.12 Business Continuily Plan .. ,... ,90
25.13 Step-ln Rights ." ............ .. .." ........ ,.... 90

26 INTENTIONALL.Y OMITTED ....................................................... 91

27 I NTENTlONALL y OMITTED o •••• o . . . . . . . . . . . . . . . o •••••••••• " . . . . . o . . . . . . . . . . . . . . . . 91

28 AlJ[)IT~ •••••••••.•.....•••••••••......••••••••••••.....••••••••••..•....••••••••••••... 9 1

28.1 5erviceAudits., .. ,... ,.. 91
28.2 Financial Audits ......... ,' ,.. 92
28.3 Control Audils ........ _ " ... 0 •••••••• ...... ,........ " ..... 92
28.4 Annual Third Party Audit ,_ ... 92
28.5 Facilities ..... ,......... , ............. . ,.... , ...... 93
28.6 Ragulatory Auclits., ................ ,.......... ,.. . ................. 93

29 CONFLICT OF INTE;REST .........................................................93

30 ASS1GNMENT ..................................................... " ................. 93

31 MODIFJCATIONS ....................................................................94

31.1 Mocliflcation Proposal ... , ,........ " .. . ... ,,94
31.2 Content 01 Contractor's Modi/ication Notica .... ,.95
31.3 Election, .... ,. ,' ... " ... ,....... " .. ,., ... ,......... . ,,95
31.4 lnstructian ..... ", .. , . ", ... ,... ,... , ,........ ,.97
31.5 Moclilications Propasad by Contractor... " .... ,... ,.... ,.. ". " ... ,....... . ,........ ,.,97
31.6 Contractar lo Baar Risk and Cost 01 ils Own Modifications ", ... ,... ,.. 99
31.7 Dayworks .... ,' ... ,.... ,.... ,.. , .... ,......... ,.... , ,... ".99
31.8 Limitatian 01 USe " .. " .. " ....... " ..... " ......... . ,100
31.9 Amendments lo Moclifications Procedures . ,...... ,.... ,.. ,,100

32 DISPUTE RESOLUTION ......................................................... 100

32.1 Procedure lar Resotving Disputes. , ... ,.100
32.2 Negotiation ... ,... "....... ... " ... ,.... ,..... . ..... ,........ ,.101
32.3 Expert Determination .. ,......... ,.. " . ".101
32.4 Selection ofExpert ..... ,.. ". " ......... , ".102
( 32.5 Rules of Expert Oeterminalion., . " ...... 102
32.6 Expert Finding. ." ....... . ... 102
32.7 LiabWty 01 Expert, .. , . " ... ,........ , ... ~ .... ~

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32.8 Costs .. ..103
32.9 Arbitration ..... , ... 103
32,10 IdentityofArbitrator. _." ....... " ... , _." .......... " ............ 103
32.11 Rules lor Conducl 01 Arbilration " .. 104
32,12 Place 01 Expert Delerminaúon or Art:itration._ ............. 104
32.13 Continua ###BOT_TEXT### Perform ... " ... .. ,104
32.14 Summary or Urgen! Relief.. ....... _ ", ........ 104
32.15 Joinder ...... ,' ... " ....... . ,,_o , ••• ,104
32.18 lnjunctive Relief... .. ." ... ,.... ,104

33 LAWS ANO APPROVALS .....•.............••....••..........• , ................ 105

33.1 Comply wilh all Laws .... . ... 105
33.2 Changes in Law ...................... .. . ............................................. 106

34 CHANGE IN CONTROL .......................................................... 106

35 UPDATES ........................................................................... 106

35.1 Updates 01 Third Parly Software ....................................... . ................................. 106

36 NOTICES ............................................ " .............................. 107

36.1 Notiees 01 Claims .. . ....... 109
36.2 Prescribed Notices ..... . .. 109
36,3 Continuing Events ... . ....... 110

37 GOVERNING LAWAND JURISDICTION ..................................... 110

3B PUBUCITY ......................... "' .............................................. 111

38.1 No Endorsement.. ......................... . ...... ..... ....... 111
38.2 Prior Approval 01 Pubtic Stalements ........... 111
38.3 Approval 01 Communications .. 111
38.4 Rights in Published Works ....................... . . ............. 111

39 MISCELLANEOUS ................................................................ 111

( 39.1 Cooperation anel lurther aets ............ . .. 112
39.2 Service Recipient's rights ....... . ... 112
39.3 Survival 01 Contract ........................ . ........................ 7 ....... 112

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39.4 Waiver. ... ,112
39.5 Severability .113
39.6 Counterparts _ ", ..... 113
39.7 Cumulative Remedies, _ ...... 113
398 No Agency ", .............. , " ..... 113
39.9 Indemnities., ... .. , 113
39.10 Time Is 01 the Essence .... , ,.113
39.11 COllsents, Approvels ami Requests ,. ,.114
39.12 No Co-Employment.. ....... , _ ,............ . ,.114
39.13 Invoioe Certiflcatioll __ ' ................... , _ ... 114
39.14 Corporntion Duly Authorized lo do Business in Puerto Rico __ ,................. " _ ,.. 115
39.15 Tax Obligations .. .115
39.16 Elderly Support ..... " ....... . ....... 115
39.17 LewNo,237-2004. __ .. 115
39.18 Professional Ethics ........ . .... 116
39.19 Government Ethics, Crimes aflainst ¡he Treasury and Olhers... .............. ..117
39.20 Adverse Interests [Act 84-2002, Act 237-2004] .... .............. ,...... .... 119
39.21 Loss or Oamage 01 Material ... . . ................................................................ 119
39.22 Hold Harmless ......................................... . ...................... ......... 119
39.23 General Provisions ............... . ...................................................................... 120
39.24 Record in Ihe Office 01 the Comptroller ........... . ...... 121


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MASTER SERVICES AGREEMENT is enlered inlo the 4th day of February, 2015 (the
" and between Ihe Puerto Rico Highways and Transportatiol1 Authority
Metropolitanas de Puerto Rico, LLC ("Metropistas"), a limited liability
under Iha laws 01 Puerto Rico, and Gila LLC ("Contractor"), a limited liability
under the laws of Ihe State of Texas, United States of America, and duly
authorized do business in Puerto Rico (lhe "Contrae!").


WHEREAS, the PRHTA owns and operates an Eleclronic Toll Collection Syslem rETCS")
for Ihe collection of tolls on Ihe toH highways owned by Ihe PRHTA and operated by eilher
Ihe PRHTA or its concessionaire(s);

WHEREAS, Ihe Service Recipients desire Ihal Conlractor provide services, including ETCS
operations and mainlenance for the Tollroads owned by the PRHTA and operated by Ihe
Servlee Recipients, llpon the terms and eonditions sel forth in this Agreement;

WHEREAS, Ihe Service Recipienls further desire Ihal Contractor provide services, inclllding
Cuslomer Serviee Center ("CSC") managemenl and operations for Ihe Tollroads upon the
terms and conditions se! forth in this Agreemenl;

NOW, THEREFORE, in consideration 01 the premises and the mutual covenants and
agreements contained herein, and other good and valuable consideralion, the receipt and
sufficíency of which are hereby acknowledged, Ihe Partíes covenant and agree as follows:

1,1 Deflnltions

In this Agreament, unless Ihe conlext clearly indicates otherwise,

Afflllate means, as lo any entity, any olher entity thal, direcUy or indireetly, Contrals, is
Controlled by, or is under common Control with, such entity.

Agreemen! means (a) this Contraet, the Build SOW and the O&M SOW, eollactively, (b) this
Contrae! and the Btrild SOW or (e) this Contrae! and Ihe O&M SOW, as the eontaxt raquires.

Approval means any license, permil, eonsent, approval, determination, certifieale, alearanee,
permission or Ihe like whic~ is r€quired lo be issued by, or obtained from, any Authorily or any
other person or under any Law, or any requirement made under any law which shall be
obtained or salis/ied (as the case may be):
,'j in conneetion with Ihe Servicas; or

EXECUTION COPY Psge 12 01 116
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(b) ¡he Tolling System.

Associates means in retalian lo a person, any Affiliate 01 lha! persan and any officer,
employee, agent, contractor, consultant, nominee, licensee af adviser 01 tha! persan or Affiliate

(a) in relation lo Contractor, does no! include Servica Recipían! or any 01 lIs
Associates; and

lb) in relation lo Service Recipían! does no! include Conlractor ar ally 01 ils

Authority means any and all federnl, slate, cily, municipal, regional ar local authorities,
departments, bodies, boards, bureaus, inslrumentalitiss, Gommissions, public oorporations,
branches, agencies, courts, tribullals, judicial aUlhorities, legislalive bodies, administrative
bodies, regulatory bodies, autonomous or quasi-autonomous entities or laxing aulhOlities or any
political subdivision 01 any thereof and any person or entily (whelher aulonomous or not)
exerclsing executive, legislative, judicial, regulalory or administrative lunctions of or pertaining lo
any 01 Ihe foregoing entities.

Bes! Practlces means design, construch'on, commissioning, repair arld support practices
performed with the dua sklll, care and diligence which may reasonably be expected of a skilled
professional, suilably qualified in the performance 01 obligations similar lo Contraclor's
obligations under this Agreement so as lo achleve a result consistent with Law, reliability,
safely, protection 01 Ihe Environment and Ihe requirements 01 Ihis Agreemenl. It Includes
everylhing reasonably necessary lo ansure Ihal:

(a) Ihe Tolling System is designed and construcled in a manrler safe lo all people
and the Environment:

(b) Ihe design 01 Ihe Tolling System is conduc!ed in an interactive manner with
Service Recipienl Ihal besl elicils the required operalional detail from

(e) the utility of all the systam user interfaces are lit fer purpose in Ihal they have
been optimized for usabilily;

(d) the Tolling System is conslrucled as designed;

(e) Ihe Tolling System is designed and conslructed lo ensure reliable long lerm
and sale operation and the Services are performed by trained and
experienced personnel utilizing proper equipmenl, lools and procedures;

(f) sufficient personnel are available and are adequately experienced and trained
lo proVide the Services;

(g) adequale materíals, rasources and supplies are available lo enSUle
compliance with requirements 01 IMis Agreement under normal conditions and
reasonably anlicipated at normal conditions; and

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(h) Ihe principie 01 continuous improvement is adhered lo; Ihal Is, a commitment
lo continually improving Ihe standards and quality of ¡he design and
construction of Ihe Tolling System and Ihe manner in which the Servicas are
eaTried out including ensuring lhe design and construction 01 Ihe Servicas are
earried out in a mannar which al all times remains consisten! with Ihe overall
road network slandards, subject lo obsolescence pursuen! lo Clause 2.7(d).

Bulld SOW means Iha! Statamen! of Work lar Build Servicas entered ¡nla between Servica
Recipients and Contreclar, dated 01 aquel date herewith,

Business Continuily Plan has the meaning set forth in Clause 25.12.

Business Day means:

(a) when used in Article 36, a day in the place where the communication Is reeeived
which is not a Saturday, Sunday or a public holiday on whieh banks are generally
dosed lor business; and

(b) when used in any other clausa under this Agreemant, a day in San Juan, Puerto
Rico that is not a Saturday, Sunday or a public holiday on whieh banks are
generally elosed lor business_

Business Hours means between 9:00 a.m. to 5:00 p.m. on a Business Day.

Call Center means the help desk provided by Contractor with respect to the Tolling System.

Certificate of Tolllng System Completion means a eertifieate issued by Service Reciplent
eertifying that Tolling System Completion has been achieved.

Certifleatlon Schedule means the certilication schedule set forth as part of the Project

Change in Control means Ihe (a) consolidation, merger, share exchange or other business
combination involving Contractor in which immediately lollowing such transaetion either (i) less
than 50 pereent 01 the directors 01 the surviving parent entity immediately lollowing the closing
of the transaction were directors 01 Contractor immediately prior lo the closing of the transaction
or (ií) 18SS than 50 pereent 01 the voting power 01 the surviving parent entity immediately
following the closing of the transaction is held by persons who were shareholders of Contractor
immediately prior lo the dosing 01 Ihe transactiol1 (other than the eonsolidatiol1 or merger 01
Contraetor with an Affiliate 01 Contractor in which Conlractor Is the surviving entily of such
consolidation or merger), (b) sale, transler or other disposilion of all or substantially all, with
respect lo Contractor, 01 the assets usad lo provide the Serviees or (e) acquisition by any entity,
or group of entities acting in concert, 01 beneficial ownarship 01 50 pereent or more of the
outstanding voting seCl.IfI'jies or other ownership interasts 01 Contractor (other than an
aequisition of Contractor by an Affiliale 01 Contractor in which the same entity or person as 01
the Effeclive Date remalns in control 01 Contractor, through direct or indirect ownership 01 50
pereent or more 01 the outstanding voting securities or other ownership lnterests 01 Contractor
that have ordlnaly voting power lo elecl the board 01 direetors, managing general partner or
\ similar managing aulhorityl_

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Claim means any assertion, or any actual or threaterled claim, ection, sui! or proceeding
(whether civil, criminal, administrative, arbitral, invesligative or otherwise).

Close·Out means the slege under Ihe Build SOW when:

(a) Contractor has achieved Main Eles Sita Completion, DR Site Completion and
Tolling Points Completion and Tolling Day Three has occurred; al1d

(b) Service Recipient has done everything which this Aareernent raquires il lo do as a
conditioll preceden! lo Closa-Out as sel out under Attachment 2 lo Ihe Build

Commencement Date means Ihe earlier 01 Ihe Gommerlcement 01 Ihe performance 01 !he
SSNicas by Con!rac!or amI !he date 01 lhis Contraet.

Confidentlal Informallon means tha eonfidential lnformation, both oral and writlen, 01 a Party
or its Affiliales, aganls or representatives which relates to tha subject matter 01 this Agreemant
and ineludes inlormation relating lo:

(a) the plans and designs lor ¡he Tollroad, toll plaZas, revenue projections, estimated
or actual numbers olvehicles lo be using or actually using the Tolling System;

(b) the de!ails 01 the systems with whieh the Tolling System shall be Inleroperable:

(e) Ihe leehnology and design 01 Ihe Tolling System;

(d) lhe personnel, policies or business slrategies 01 Serviee Recipíant; and

(e) Iha lerms 01 this Agreemenl including with respect lo how the Tolling System and
tha Serviees have been supplied or installed pursuent to this Agreement

Contrael has Ihe meaning sel forth in the preamble.

Contraetor has the meaning se! forth in !he preamble. Use 01 the term "Contractor" shall
¡nelude any Affilieles 01 Contractor providing the Serviess, subject lo the terms 01 this

Contractor Consents means alllieenses, eonsents, permils, approvals and authorizations lha!
are neeessary lo allow, in conneelion wilh the Serviees (a) Contractor and Conlracto~s
Associales lo use (i) the Contractor IP end hardware owned or leased by Contractor, (ii) any
assets owned or leased by Conlraelor or Contractor Assoeiates and (W) any Ihird party services
relained by Conlractor, (b) Servies Reeipient and Serviee Recipient's Assoeiates to use tha
Contractor IP and hardware owned or leasad by Contractor and (e) Contractor and Conlraetor's
Assoeiates lo assign the Deliverables and Serviee Reeipient Dala lo Serviee Recipien!.

Contrae!or IP meens Inlelleetual Property tha! is lieensed or ownad by Contractor that is used
in eonneetion wilh lhe Serviees, including Soltware sel forth in any SOW.
\ Contraetor Pre-Exlsting IPR means (i) intellectual property rights the! ere licensed or owned
by the Contractor balore the execution 01 this Agreement and tha! are used in conneclion with

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the ServiC9s, including Software se! forth in sny SOW or (ii) intellectual property rights crealed
independenlly 01 Ihis Agreemenl.

Contractor's Modificatlon Notlca has lhe meaning sel forth in Clause 31.1{b).

Control means, wilh raspee! lo any entily, Ihe Poss€ssion, directly or indirectly, 01 ¡he power lo
direct or cause ¡he direction 01 ¡he management or policías of such entity, whether through Ihe
ownership 01 voting securities (DI olher ownership interest), by contracl 01 othelWise.

Control Objectives means 5ervice Recipient's internal audit conlrols with respect lo Ihe

ese has Ihe meaning sel forth in the recilals.

Customer means, al any time:

(a) in respeo! 01 Servioe Recipient, any person who is then registered for use of, or
Ihe entitlement lo use Ihe Tollroad or any par! of Ihe Tollroad by one or more
vehicles in aceordanoe wilh Ihe lerms 01 tha! arrangement; and

(b) in raspect of anolher Tollroad Servioo Provider, any person who is Ihen regislered
with or is a party lo an arrangement with Ihal Tollroad Servioo Provider goveming
Ihe arrangemenls for Ihe use of, or Ihe entittement lo use Ihe relevan! Tollroad by
one or more vehicles in aceordanee wilh Ihe lerms 01 Iha! arrangemenl.

Customer Servieas means the cuslomer services (e.g. call center servioos; walk-in Customer
Serviee Cenlers, in-Iane replenishmenl lanes) and related functions and responsibilities of
Contractor described in Ihe O&M SOW.

Damages Cap has Ihe meaning set forth in Clause 21.2.

Data Security Breaeh means any unlawful or unauthorized aoooss, use or diselosure 01 Pll or
breaeh or atlempled breach 01 the securily 01 PI!.

Date 01 Tolllng System Completion means Ihe date 01 Tolling System Completion atated in a
Certificate 01 Tolling System Completion.

Deleet means:

(a) any defeel, shrinkage, movement, deficieney, malfunction, imperfection, crash,
look-up, fault or omission in Ihe Tolting System arising Irom any cause, including
design, malerials or workmanship;

(b) any olher aspeet 01 the Tolling $ystEm which is not in aeoordanee wilh the
requirements of this Agreement; or

(el any physieal damage lo Ihe Tolling Syslem resulting Imm sueh deleel, shrinkage.
movement, delieiency, mallunetion, imperfection, erash, lock-up. faul!, omission or

EXECUTION "'"OC"'--_ __
_ _ _ _ _ page 16 of 116
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Defect Natíoe meana written notice 01 a Defec! issued lo Contractor during Ihe Delecta Liability

Delects Liablllty Periad mearla Ihe periad 0136 months which begins on Ihe Date 01 Tolling
System Completion and, in respee! 01 any work ¡elating lo Detects completed after a Defect
Notice, a furlher 36 months alter the date on which Ihe Defea! ia corrected in accordance with
this Agreemenl.

Deliverables meana any ítem delilfered, 01 gooda al Servicas provided, by Contractor lo
Service Recipient under this Agreement (ar any par! 01 any ollhem).

Demobilizallon Costs means:

(a) prior lo Close-Out, (i) Ihe sum 01 the casI 01 paraoonel lerminalion oosls {other
than expatriate personne~, (il) non-personnel contrae! terminationloaneellation
eosts and (iii) Pass Through Expenses ineurred; and

(b) alter Close-Out, (i) Ihe sum 01 the cost 01 personnel lermination oosls (other than
expatriale personnel), (ii) non-personnel contrae! lerminationlcancellation cosls,
(iii) Pass Through Expenses incurred, and (iv) the cosl 01 any already aequired
(even il in transll) equipmen~ parls and inventary that canno! be either raturned or
utilizad in any olher on-going projeets 01 Contractor.

Deslgn Documenlation means all design documenlation (ineluding all design slandards,
design reports, durability reports, drawings, specifieations, manuals, designs, models, samples,
patterns and ealeulations, oparating manuals, user guides, Iraining materials and associaled
documenlailon) in eomputer ¡aaclable and written lorm$, or slored by any other means, relevant
lo the design and operalion 01 the Tolling System, induding any Oaveloped IP, or which
Conlrae!or creates in performing the Services. The Design Documentation shall include any
Related Documentation.

Developed IP means any In!elledual Property developed by Conlractor pursuant lo this
Agreement tha! is (a) Developed Software, (b) a modification or enhancemenl 01 Service
Recipient IP or (e) an original non_derivative work.

Developed Software means the Software Ihal is lo be developed by Conlraetor in respeel 01
the Services (or pursuant lo this Agreement) as parl 01 Ihe Development, including related
Design Documentalion.

Development means the deve1opmenl, design, proourement or manufadure by Conlrador 01
Ihe Developed IP, Ihe Third Parly Soltware, tha Equipment, any component or parl 01 the
Developed IP, the Third Parly Software or the Equipment or any olher produe! or ítem
necessary to provida Service Reeipíent wilh the Tolling System thal conlorms with the
Requiremenls Specificalion.

Discrlmlnatory Change in Puerto Rico 01 Federal Law means:

(a) Ihe amendment, repeal ar change of a Puerto Rico Law or Federal Law (not
\ including any amendmenl or ehange in an Approval resulting from any dired ar
indirect aclion of Sarviee Recipient in accordanee with Ihis Agreement including

~~~. Page 17 01 1J.6
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any modification requested by Servioa Recipient) existing al the dale of this

(b) the enactment 01 a new Puerto Rico ar Federal Law; ar

(e) a change in Ihe interprelation or application 01 an existing Puerto Rico ar Federal
Law, brough! about by:

(i) the amendment, rapeal ar change 01 another Puerto Rico ar Federal
Law; ar

(ii) the enactment 01 a new Puerto Rico ar Federallaw,

which direclly affects Ihe interpretation ar application 01 such existing Puerto Rico
ar Federal Law;

alld which specifically and only affecls the Servicas ar has a direct affae! upon the Services
togelher with othsr privately owned and aparated toll roads in Puerto Rico.

Disputes has ¡he meaning set forth In Clause 32.1(a}.

DR Site means the Sile al which Contractor maintains a fully synehronized replica of the Tolling
system, which shall be located in a geographically remote area from ¡he Main ETCS Site.

DR Slte Completion means Contractor has completed all acceptance crileria associated with
the DR Site, as sel forth in the Build SOw.

Effective Date has Ihe meaning se! forth in the preamble.

Encumbrance means a mortgage, pledge, lien, charge, assignment by way of securily,
hypolhecalion, secured inleresl, title retenlion and arrangement, preferential right, trust
arrangemenl or any arrangement having Ihe same 01 an equivalen! commercial effect 01 any
agreemenl lo create such an arrangement and includes all olher third party interests of
whalever description.

Environment includes:

(a) ecosystems and lheir eonstituenl parts, inctuding people and communities:

(b) natural and physical resourcas:

(e) the qualilies and characteristics 01 locations. placas and areas; and

(d) the social, economic, aeslhetic and eulturel aspects of a thing mentioned in
paragraphs (a) lo (e).

Equipment means the eqUlpment which is to be supplied or procured by Conlractor and is
necessary lo mee! Ihe requirements 01 the Requiremenls Specification and this Agreemenl.

ETCS has the meaning se! forth in lhe recitals.

_ _ _ _ Page 18 of 116
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Event 01 Default mean$ any 01 ¡he following:

(a) a material breach 01 en obligation lindar this Agraement by Con tractor;

(b) Contractor abandons or displays an intention lo abandon any 01 tha SSNices;

(e) en Event 01 Insolvsncy occurs in relation lo Contractor; or

(d) an Even! 01 Insolvency occurs in relation lo any guarantor 01 Contractor.

Even! 01 Insolvency means:

(a) in ralalian lo a company, any 01 the following events:

(i) a "Controller", manager, trustee, adminislrator ar similar officer ls
appoinled in respect ofthe company ar any asse! ofthe company;

(ii) a Iiquidator ar provisionalliquidator ls appointed in raspeel ofthe eompany;

(iii) any appliealion (not being an application withdrawn or diamiased wilhin len
(10) Business Days) is made to a court lor an order, or an oroer ia made,
or a meeting ia convened, or a reaolution is pasaed, lor the purpose of:

(A) appointing a person referred lo in parsgraphs (i) or (ii);

(B) winditlfJ-up the eornpany; or

(C) proposing or implementing a scherne 01 errangemenl In respeel 01
Ihe company;

(iv) a moratmium 01 any debls 01 the eompany or an official essignment or a
composition or en arrangement (formal or informal) with Ihe company's
credilors or any similar proceeding or arrangemenl by which the asaels of
the company are subjected conditionally or unconditionally lo the Conlrol of
the company'a eredilors is ordered, declared or egreed lo, or is epplied lor
and Ihe epplicallon is nol withdrewn or diarnissed within len (10) Business

the cornpany beco mes, admits in wliting Ihal il ¡s, is declared lo be, or is
deemed under any appliceble Law lo be, insolvenl or lInable lo pay ils

(vi) eny wril 01 execulion, gernishee order, injune!ion or similar order,
ettachmenl, dislress or olher process is made, [evied or iSSlled against or
in relatlon lo any assel ollhe company; or

(vii) any ae! is done or event occurs which under Ihe Laws lrom time lo time 01
a eountry other Ihan Puerto Rico which has jurisdiction over Conlractor or
Guarantor has an analogolls or similar effee! to any 01 lhe events in

c:::::c__p_,mgmPh' (lHI'j wl'h "'P'" 'e C"te"'e; e; G",'''~ _



(b) in retalian lo a trust, any 01 lhe following events:

(i) an application or arder is sought or mada (and is no! stayed or dismissed
within ten (10) Business Days alter being soughl or made) in any court lor
¡he property 01 ¡he trust lo be broughl into court or adminislered by lhe
court or broughl under ¡lB control; or

(ji) ¡he essels 01 the trust are no! sufficient lo satisfy lhe trustee's debts as aná
when thay become due end payable in rasped ofwhich il has a righl lo be
indemnified out 01 the a88ets aflhe trust.

Exi! Plan means Ihe detailad exi! plan lar Ihe tmnslar 01 aaeh oflhe Services from Contractor lo
Ssrvice Recipient or a supplier designated by Service Recipíent.

Extenslon Notíce has Ihe meaning sellorth in Clause 24.1(b).

Fees means Ihe O&M Fees, with respect lo Ihe O&M SOW, including (plus) lhe Pass Through

Final Bid Proposal means Ihe bes! and final offer submitled by Conlractor on Sep!ember 12,
2014 and se! forth in Annexure B.

Force MaJeure Event means an evenl Iha!:

(a) occurs afterlhe dale hereol;

(b) was no! foreseeable as ollhe dale hereof;

(e) is beyond the reasonable conlrol 01 and withoul Ihe faul! or negligence oflhe
aifecled Parly;

(d) causes Ihe affecled party lo be unable lo perform ¡Is obligations under Ihis

(e) by Ihe exercise 01 due loresigh\, sueh affecled Party could nol reasonably have
been expected lo avoid; and

(f) such affecled Party Is ul1able lo overcome by Ihe exercise 01 due diligence and
reasonable care (il being underslood and agreed Ihal reasonable care includes
ae!s or aclivities lo proteel against a casually evenl Ihal are reasonable in lighl 01
Ihe likelihood 01 such evenl, Ihe probable effect 01 such evenl il il should oeeur
and the líkely efficacy 01 such prolection measures).

However, each 01 the lollowing are explicilly eXeluded Irom Force Majeure and are the sale
responsibility 01 Contractor:

(o) slrikes or labor disturbances involving only employees 01 Contraclor or
employeas 01 any Subconlrnctor;

-~f!h _ _'c,~gC 20 of 115
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(b) shortages or price fluctuations wilh respee! lo malerials, supplies or componenls
of equipmenl or other Services, late delivery 01 materials, supplies or
components of equipment:

(e) economic hardship;

(d) shortegss of manpower;

(e) the del ay, defaul! or failllfa lo perform i:fy Contrac1m or any Conlractor Associate;

{f} machinery or equipment breakdown;

(g) customs procedures;

(h) unavailability al lhe Sitas 01 necessary water and other Utilities, othar lhan power
provided by 5ervice Recipient;

(i) fiaws or ambiguities in the Design Documentatioll requiring Contractor lo re-
design or re-engineer any portian af the Tolling 8ystem or otherwise ehange or
modify !ha Tolling Sys!em; and

(j) weather (exeluding earthquakes measuring more Ihan VI on Ihe Modified Merealti
Inlensity Seale, hurricanes wilh basic wind speed over Ihree-second gust speed
al 33 leet above Ihe ground in Exposure e -145 mph lar Puerto Rico (IBC 2009
Figure 1609), Iloods, Isunamis or lomados) or geologioal condilions Ihal could
reasonably be expected lo occur by an experieneed eonlractor in Puerto Rico or
Ihal are accounled lar 9r addressed in Ihe Design Doeumenlalion.

Indemnitees has Ihe meaning sel forth in Clause 21.5.

Inilial Term has the meaning sel forth in Clause 24.1 (a).

Intelleclual Property means all U.S and non-U.S. (a) trademarks, service marks, brand names,
certifioation marks, eolleolive marks, dlbla's, Internet domain names, logos, symbola, trade
dreas, assumed names, fictitious names, trade names and olher indicia 01 origin, and aU
goodwill associated with all 01 Ihe fore{loing; (b) all patents and patent applicalions;
(e) invantions, diseoveries, ideas, confidenlial and proprielary information, trade secrets and
know-how, inoluding proceases, sehemalics, databases, formulae, drawings, prolotypes,
models, designs and eustomer lisIs; (d) PUblished and unpublished works of authorship
(including software), and copyrights and moral righls !herein and therelo; (e) electronic data
processilljJ, inlormation, record keeping, communicaliona, telecommunications, aecount
management, inventory management and other computar systema (including all computar
programa, software, databases, firmware, hardware and Related Documentation) and Inlernet
websites and ralated content; and (1) inlorrnalion and data, whether in printed or electronic form
and whelher contained in a database or otherwise.

Interoperability Agreemenls means an agreement between Sarvice Recipienl and another
Tollroad Service Provider that enables CuslomefS 01 Service Reclpienl and such other Tollroad
I Serviee Provider lo use a lag issued, in accordanee with such agreement, by either Service
Recipient or such olher Tollroad Serviee Provider to be Interoperable.

EXECUTlON COPY page 21 of 116
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Interoperable or Interoperablllty means when a tolling system:

(a) has each ofthe following fsatures:

(i) is capable 01 recording a Journey and essociated lolls and charges incurred
by a Customer 01 ona Puerto Rico tollroad oparatar while travelling on a
Puerto Rico tollroad 01 another aperatar;

(jI) it enables tha! Cuslomer lo be billsd for 10118 and charges ¡ncurrad on the
journey by ¡he oparatar 01 such tollroad; and

(iii) il provictes lar payment of lolls 8nd charges ¡ncurred on lha! joumey lo be
remitted lo an aparatar from another aparator (whelher directly or Ihrough
an agreed payments clearing mechanism); and

(b) allows Ssrvice Recipient lo provida recíprocal eapacity to each other Puerto Rican
tollroad without prior arrangement between either:

ti) the Cuslomer of the other lollroad Servies Provider and Servica Recipient;

(ii) a Customer of SaNice Recipíen! and Ihe other lollroad Service Provider.

Key Individual means tha Contractor representative, pursuant 10 Clause 13.3, and such other
individuals identified as "key individuals" in an SOW.

Key Performance Indlcator has the meaning se! forth in the O&M SOW.

Laws means all Uni!ed Slates and Commonweal!h of Puerto Rico ordinancas, rules,
regulations, declarations, decrees. directives, legislative enactments and court (or othsr
governman!al, administrative or regutalory).

Loss means any loss, damage, payment, liabílity (including setttements, judgments, fines and
penalties) or cost and expense (including reasonable altorneys' lees, court costs and other
titigalion expenses).

Main ETCS Site means Ihe Site where the Tolling System is hosted.

Main ETCS Slte Completion means Contractor has completed all aecaptance criteria
assoeialed with Ihe Main ElCS Site, as set lorth in the Build SOw.

Marks has the meaning sel lorth in Clause 5.6.

Metrapistas has Ihe meaning se! forth in lhe preambla.

Mileslone means any milestones listed in the applicable SOw.

Milestone Credit means Ihe amoun! ollhe eredit lo be paid, or eredited lo, Servíce Recipient,
\ a! its oplion, il a Miles!one Date is not achieved by Contractor, as such amollnt ia sel lorth in the
applicable SOW.

EXECUTlON COPY page 22 of 116
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Mllestone Date means Ihe date by which Contractor shall mee! eaeh Milestona, as sal lorth in
lhe applicable SOW.

Modificatlon means any changa lo lhe TOlling System or lhe Servicas, including any addition,
¡ncrease, decreese, omission, delstian, demolition or removal lo or fram Iham.

Modificstlon Cosí means, lo Ihe extent a propased Modi/icalion ¡ncreases Ihe scope or Ihe
cosl 01 the Services:

(a) Ihe diree! cosls and associated on-site overheads reasonably arisirlg as a diree!
result 01 Ihe Modification afiar deducling all Modification Savings as a direcl result
01 Ihe Modiflcation: and

(b) a reasonable amount on acoount of off-site overheads and profit margin 01

Modlllcation Proposal has the meaning set forth in Clause 31.l(a).

Modlllcation Saving means, to Ihe extent the Modilication decreases the scope or lhe cost of
the Services, the cosl savings arising as a díreet resull of the Modifiealion (including any
savings in relaHon ID eonslruction costs, associated on-site overheads and a reasonable
amount on account 01 off-site overheads and profit margín).

Obsolescenee has the meaning sel lorth in Clause 6,1.201 Annsxure A.

O&M Fees has Ihe meaning set forth in the O&M SOW.

O&M SOW means that Statementol Work for Operalion and Maintenanoo enlered into between
Servioo Reeipienl and Contractor, dated of equal date herewith.

Optional Services means those services deseribed in Annexura D.

Par1y means either Contractor or Serviee Recipient, as the context dictates.

Parties means the Contractor and Service Recipient.

Pass Through Expenses means, in addition lo any expenses thal may be designaled as such
under the Build SOW or Ihe O&M SOW, or both, all filing fees and municipal construetion tax
impositions whieh are payable under applieabls Law to any applieable Authority lor filing and
obtaining the conslruction permits for lhe provision ofthe Services contemplated under the Build

Performance Security has Ihe meaning sel forth in Clause 20,2(a}.

Personnel has lhe meaning sel forth in Clause 13.1(b}(i}.

PII means information or dala that (a) identifies an individual, including by name, signature,
address, telephone number or other unique identifier or (b) that can be used to identify or
( authenticate an individual. including passwords, PINs, biomelric data, unique idenlification
numbers (e,g" social securily numbers), answers lo securily questions or other personal

EXECUTION co,,-,,'--___ _ _ _ _--'page 23 of 116
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PRHTA has ¡he meaning se! forth in lhe preamble.

Project Milestone has Ihe meaning se! forth in lhe BUlld SOW.

ProJect Schedule has Ihe meaning sel forth in the Build SOW.

Quallty Assurance System has lhe meaning se! forth in Clause 6.2.1 01 Annexure A.

Relatad Documentation means, with raspee! lo Software, all materials, documenlalion
(including oontrol documentation utilizad in connection with en aUdit), specifications, lechnicel
manuals, usar manuals, flow diagrams, file descriptions and other written ¡nfarmellan ¡ha!
describes Ihe functian and use 01 such Software, bu! excluding any souree codeo

Representativas has Ihe meanlng sel forth in Clause 32.2(a).

Requiremenls Speeilieatlon means lhe documenl sel lorlh in the diflerenl Annexures and
SOWs 10 Ihis Agreemenl, Including Annexure A.

Servlee Reclplent has Ihe meaning sel lorth in Clause 1.8.

Servlee Reeipianl Audltors means Servies Recipient and any 01 its r8{lulalors, accountants,
audilors or third party eonsultanls.

Serviee Reelplent Consents means all licenses, consents, permits, approvals and
authorizalions lhal are necessary lo allow Conlraetor lo use (a) Ihe Servica Recipient IP and
hardware owned or leased by Service Reclpianl, (b) any assats owned or [easad by Service
Reeipienl and (e) the services provided lor Ihe beneli! of the Serviee recipienls under Service
Reeipient's lhird party services conlracts. in each case, as necessary lo provide Iha Services.

Sarviee Reeipienl Dala meal1s all data or il1lormation regarding Service Reclpienl, the
businasses 01 Serviee Recipienl, or Serviee Reeipienl amployees, former employees, suppliers
or Cuslomers (a) submitled lo Conlraclor by Service Reclpient or any Serviee recipienls, (b)
oblainad, developed, pro ces sed or produced by Conlractor (olhar Ihan data internal lo
Contraclor) or (e) accessed by Contraclor in eonnection wilh Ihe Serviees.

Servlee Reeipienl Dala Safeguards means Service Recipienl's electronic sacurity policles,
standards and proeedures as Sarvice Recipient provides or makes available lo Contractor Irom

Sarviee Reeipienl IP means Inlallectual Proparty thal is licensad or owned by Service
Recipient (other Ihan Ihe Conlractor IP) Ihat is usad by Contractor in eonnection with the
Services, ineluding Ihe Software sel forth in any SOW.

Serviea Reelplent Privaey Policy means Service Recipient's privacy policy as Servioe
Reeipienl provides or makes available lo Contraclor from time-to-time and annexed lo Ihis

Servlees means the services, functions and rasponsibililies 01 Contractor desenbed in this
( Contraet and the SOWs.

( (


Site means the locations for delivery and Installation 01 any part 01 ¡he Tolling Systern, including
sny related Equipment.

Software m8sns the objecl code and source code versions of any applicstions programs,
operating system software, computar software languages, utililies, lools, machine readable taxts
and files and olher computar programe, in whalever 101m ar media (including Ihe tangible media
upon which such are recordad ar printed), including all corrections, improvements, updates and
releases Ihereo!.

SOW ar SOWs has the meanir1g sel forth in Clause 1.7(b).

Step-In Dale has Ihe meaning sel forth in Clause 25. 13(a).

Step-Ollt Dale has Ihe meaning sel lorth in Clallsa 25.13(d).

Step-Olll Nollce has Iha meaning sel lorth in Clausa 25.13(b).

Slep-Out Plan has the meaning se! forth in Clause 25.13(c).

Subcontraclor means in relalion lo a person, any agenl, conlractor, consullanl, nominee.
licensee or adviser 01 thal person and:

(a) in relalion lo Contractor, does not include Service Recipient or ¡¡ny 01 its
sllbconlraclors; and

(b) in relation lo Serviee Recipienl does not inelude Contraetor or any of its

Syslem Software means Ihe Developad Software and Ihe Third Party Software.

Tag means an electronie davice provided by a Tollroad Sarviee Provider lo a user of a lollroad
lo enable Iha userlo pay lolls on 1011 roads (including Ihe Tollroad) by means 01 an electronie tall
colleetion system

Tag Interoperable means Tags Ihal are Inleroperable with respact lo Customers 01 Service
Raeipient or another Tollroad Serviea Provider.

Term has the meaning sel forth in Clausa 24.1 (a).

Termination Asslslanee Perlod means a period 01 lima designated by Service Reclpient,
commencing on Ihe date a delermination is made Ihat Ihere shall ba an expiralion or termination
01 Ihis Agreemenl, in whole or in part, and conlinuing lor up lo 24 months afler Ihe effactive dale
01 such expiralion or termination.

Termlnatlon Assistance Servicas has the meaning se! lorth in Clause 24.13

Test and Evaluation Master Plan means the plan thal defines Ihe slrategy behilld, and
activities lo implement, all veriflcation and validation activities lo ensure the Tolling System lo be
provided by Contractor meels or exceads Ihe requirements under this Agreament. The Tesl
and Evalualion Master Plan is provided by Con!ractor and approved by Servica Recipient in
accordance wilh Iha Requiremenls Specificalioll.

EXECUTION COPY page 25 of 116
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Third Party Software means Software usad in connection with Ihe developmenl or operation of
Ihe Tolling System, which is no! owned by Ssrvice Recipient.

Tolling means detecting, classifying, identifying and lolling, and charging lolls for Ihe use 01, or
olherwise in connection with, Ihe Tollroad as contemplaled by Ihis Agreement.

Tolling Commencement means Ihe slege when Serviea Recipient certifies Iha! such parts 01
Ihe Tolling System have been sufficiently completad prior lo Ihe Tolling Day Two such Iha!
Serviea Recipienl has Ihe ability, al Ihe least, lo: commenes lo generala transactions al Ihe
Tolling Points; generala toll revenues Irom toll transaclions and, have Call Center availabilily;
have access lo Customer-facing web-inteñace and reports conlaining Iraffic and revenues; have
lulllnleroparabilily, and migrele end load cuslomer accounl inlormalion Irom exisling system lo
Tolling Syslem.

Tolling Day One means July 1, 2015 al OO:OOhrs.

Tolling Day Two has Ihe meaning sel forth in Ihe Build SOw.

Tolling Day Three has Ihe meaning sel forth in Ihe 8uild SOW.

Tolllng Polnl meens lhe physicallocaú"ons along Ihe Tollroad where Ihe Tolling System records
Ihe pass~e 01 vehicles.

Tolling Poinls Completion means Contractor has completad all acceptance criteria associ~led
with all Tolling Poinls, as sel torth in Ihe 8uild SOW.

Tolllng System: means:

(a) al any time, (i) the Equipment and Ihe System Software and any olher physical
hardware, software, firmware and olher aspec!s 01 Ihe system proposed lo be
used or used (as Ihe case may be) al Ihal time lor levying and collecling Tolls, in
accordance wilh Ihe Requirements Specificalion; and (ii) includes any billing
syslems. operaling systems, and any olhar ancillary systams Ihal are necessary
or dasirable lor Ihe full and propar operalion 01 Ihe syslem described in c!ause (i)
or Ihe Tollroads. On Tolling Day One, Conlraclor shall use the Legacy Syslem (as
defined in Ihe Build SOW) lo provide Ihe Services under Ihe O&M SOW.
Pursuant lo Ihe Build SOW, Contrac!or shall provide a new Tolling Syslem and on
Tolling Day Two (as defmed in Ihe Build SOW) shall use such new Tolling Syslem
lo provide Ihe Servicas undar Ihe O&M SOW. Tha use 01 Ihe lerm "Tolling
System" shall reter lo Ihe lolling syslem Ihen In use or being developed pursuanl
lo Ihe Build SOW, as Ihe conlext requires; and

(b) il Servica Reaipient exercises ¡Is oplion lo receive any Oplional Services, Ihe
loregoing shall be deemed lo include sueh Oplional Services, bul only afler Ihe
date of such oplion is exercised and in accordanca with Ihe limaline lor Ihe
implemenlalion 01 such services as described in Ihe Build SOW and provision 01
such services as desaribed in tha O&M SOW.

Tolllng Syslem Complellon means Ihe dale on which Serviee Recipienl certilies thal:

(,) Ihe Tolling Syslem is complete, excepl for minor Defects which: ~

----~page 26 of 116
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(i) do no! preven! Ihe Tolling System Irom being reasonably capable 01 being
usad and effec!ively and accuralely opernted far ¡ls lntended purpose as
specified in or ascertainable Irom this Agreement;

(ii) do no! preven! the Tollroad Irom being reasonably capable 01 being lIsed
lar lIs intended purposa as specified in 01 ascertainable Irom this

(iii) Serviea Recipien! determines have reasonable grounds lor no! promptly
rectifying; and

(IV) can be corredad withou! prejudicing Ihe conveniel1! use 01 the Tolling
System or ¡he Tollroad; and

(b) Contractor has done evarything which Ihis Agreemenl (including the
Requirements Specificalion) requires il lo do as a condilion precadenl lo "Tolling
System Completion,"

Tollroad means Iha 1011 roads ownad and operatad by Ihe PRHTA including PR-20, PR-52, PR-
53 and PR-66 and Iha 1011 roads oparated by Melropislas (PR-22 and PR-5) and Teodoro
Moscoso Bridge or such other name as agreed lo Oy the Partíes.

Tollroad Servies Provlder means a providar of Tolling sarvices lo customars in connection
with the use 01, or entitlement lo use, a toUroad in Puerto Rico and, for the purposes of any
Interoperabilily Agreement, includes any person who enters into an lnteroperability Agreement.

Updllte means a computer program or patoh tha! has been produeed by Contractor or provided
by the owner ofThird Party Software primarily to overeome defects in Software.

UtHitles means any service or ítem 01 infrastructure, ineluding water, elecl¡icity, gas, fuel,
lelephone, exisling draln~e, sewerage, railway, monorail, tramway, aqueduct. conduit, cabla,
pipe, pipeline, pole, electrical instaUation, telecommunications plant, water channel, and railway
and electronic communications sarvices (except those communieatíon systems provided as part
01 Ihe Tollroad).

Valldity Period means, wíth respeet lo each Contractor's Modilication Notice, the 25 Business
Day (or such longer period il is reasonable in all 01 the eircumstances) period after receipt by
Serviee Recipient 01 a Contractor's Modification Notíee during which terms 01 Ihe Contraetor's
Modilieation Notíoe remains open lar accaptance or rejeclion by Service Recipien!.

1.2 Interpretation

Unless the conlext of this Agreement otherwíse requires. the following rules 01 interpretation
shall apply lo this Agreement

(a) References to this Contrect ínelude the Schedules, exhibits. attachments or
Annexures hereto; relerenees to the Schedules or Annexures lo this Contract
inelude any exhibí!, attachment or annex thereto.

--~eC,-ge 27 of 116
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(b) Except where otherwise indicated, references in Ihis Contrae! (exclusive 01 lhe
Annexures) lo Clauses or Annexures ale lo Clauses of, 01 Armexures to, this
Contrae! (exclusive 01 the Annexures).

(e) References lo sny Clause shall include all Clauses, sub clauses and
paragraphs contained therein.

Id) References lo any Law means such Law as changed, supplemented,
emendad 01 raplaced.

(.) References to, and mentions of, the word "induda", "including" 01 lhe phrases
"e.g." or "such as" means "inc1uding, without limitation", unless otherwise

(1) References lo "day", "week", "quarter" or "year" reler lo a calendar day, week,
quarter or year respeclively, unless othe¡wise indicaled.

(g) $, "USD" or "dollars" reters lo Uniled Slales dollars.

(h) The words "hereol," "herein," "herelo" and "hereunder" and words 01 similar
imporl when used in Ihis Agreemen\ shall reler lo this Agreemenl as a whole
and nol lo any particular provision in ¡his Agreement.

(i) The masculine, leminine or neuler gender, and the singular or plural number,
shalleach be deemed lo include Ihe olhers whenever the context so requires.

II a word or phrase is given a delined meaning, any other part 01 speech or
grammatical lorm 01 thal word or phrase has a corresponding meaning.

(k) The word "will" shall be conslrued to have Ihe same meaning and efled as lhe
word "shall."

(1) The lerm "or" is not exclusive.

(m) The term "person" includes an individual, Ihe estale 01 an individual, a
corporation, an authorily, an association or a joinl venture (whelher
incorporated or unincorporated), a partnership and a trust. Relerences ###BOT_TEXT### any
peffion shall be conslrued as a relerence lo such person's successors and
permitted assigns.

(o) A relerence lo a Party indudes thal Party's execulors, adminislrators,
successors and permitted assigfls and, in Ihe case 01 a Irustee, iflcludes a
substituled or an addllional Irustee,

(o) A relerence lo Ihe Requirements Specificalion mcludes all appendices,
annaxures, attachments and exhibits lo il.

(p) The haadings contained in Ihls Agreemenl are used solaly lor convanience
and do nol conslilule a par! 01 Ihis Agreemeflt between Ihe Parties, flor should
Ihey be usad lo aid in afly manfler lo conslrue or inlerprel this Agreement.

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(q) References lo any controct, agreement ar document (including this Contrae! or
any SOW) shall be construed as a referenee lo such agreement or document
as Ihe sama may be amended, modifled, supplemented or raslatad, and shall
include a reference lo any agreement or dacuman! tha! amends, modi/les,
supplements or restates, or is entered into, meda or given pursuan! lo or in
accordance with ils terms.

(r) Al! obligations under Ihis Agreement 01 either Perly are conlinuing obligations
throughout the lelm hereo!.

(s) Unless otherw1se specified, ally refaranes lo a time 01 day mearts the time 01
day in San JUan, Puerto Rico.

(!) If an index ar similar reference referred lo in this Agreement is changed or no
longer published or reported by the person tha\, al Ihe dale hereof, publishes
or reports such index or reference, then Ihe Parties shall use their best efforts
lo replace such index or referonce wilh the besl substitute for Ihe changed or
no-Ionger-published index or reference.

(u) References in Ihe Annexures lo the "Eleclronic TolI Colleclian Syslem" ar
"ETCS" shall mean Ihe Tolling Syslem as dEJfi'ned in this Conlrad

1,3 Replacement Body Interpretatlon

Where a reference is made to any Authorily which ceases lo exist, Ihal reference will be lo tha!
Authority which then serves subslantlally the same functions as the Authority which ceases lo

1.4 Contrael Business Day

If Ihe day on or by which any Ihing is to be done under Ihis Agreemenl is not a Business Day,
thallhing shall be done:

(a) if it involves a paymenl other than a payment which is due on demand, on ¡he
preceding Business Day; and

(b) In all other cases, no [aler ¡han the nexl Business Day.

1.5 Order 01 Precedence

(a) The following order 01 precedence applies in the evenl 01 any inconsistency,
ambiguity or discrepancy between the various documents comprising this

(i) [he Contrae!, excluding Ihe Annexures lo this Contrae!;

(ii) the Annexures lo this Contrae!; and
( (iii) the Final Bid Proposal,

c. .___¡¡rl
-~c--~~ '"
~XECUTJON COPY Pago 29 al 116
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par! of quality,
lhe various
level documents
: ~;:::J:~,:t,:h~'i'~'~";"::t: :t~h~'~t,~,~;nystandard,
of servica orcomprising
documents comprising Ihis A9reement in wtich
standard, quality, level 01 servioe ar quantum prevails;
quantum than

Ihal wilh respee! lo any inconsistencias in Ihe dOGuments,
i shall no! in any way amend, modify ar changa Ihe Feas,
the Milestones ar ¡he Requirements Specifications.

(bl This Contrae! shall conlrol in Ihe event 01 any canllic! with any SOw.

(e) An SOW shall control in Ihe evenl of any conflict between such SOW arld a;ny
Attachment lo such SOW.

(d) 1I Ihere Is any ambiguity, discrepancy ar inconsislency in or between ¡he
documents which make up ¡his Agreement (such as the Requirements
Specilication) or between this Agreemenl and any Design Doeumenlation
which Contractor is entitled to use lor eonslruction purposes under any SOW:

(1) where Ihe ambiguily, discrepancy or inconsisteney is in or between
SElrvice Recipienl requiremenls and Ule Requirements Speeifieation,
to Ihe extent thal any parl 01 lhe various documenls eomprising this
Agreement impose a higher standard, qua lit y, level 01 servioe or
quanlum than any olher parl 01 the various documente comprising
this Agreement in which case the higher standard, quality, [evel 01
service or quantum prevails;

(il) where Ihe ambiguily, discrepancy or inconsistency is in or between
¡he doeuments which make up this Agreement, Ihe order 01
precedenee sel forlh in ClauBe 1,5(a) will apply;

(iii) where Ihe ambiguity, discrepancy or inconsistency is between Ihis
Agreemenl and any parl 01 the Design Documentation, the higher
standard, qua~'Iy, level 01 serviee or quanlum will prevail, but il Ihis
does no! resolve the ambiguity, discrepaney or inconsistency, Ihls
Agreemenl will prevail;

(IV) il it is diseovered by Service Recipíent or Conlmctor, thal Parly shall
promptly notify Ihe other 01 such diseovery; and

(,) Service Reclpient may inslruet Contraolor as lo Ihe course il shall
adopl wilhin five (5) Business Days afler Ihe notice under
Clause 1.5(d)(iv).

(e) An inslruclion given by Service Recipient under Clause 1.5(d)(v) will not
constitute a Modificalion or otherwise en!itle Contractor lo make a Claim
against Service Recipien! arising out olor in connection with Ihe instruction.

1.6 CasI 01 Performing Obligalions

Each Party shall perform ils obligalions under this Agreemenl a! ils own cosl unless expressly
provided otherwise. ~ ~ rt
. . / - f!¡'Ac.
EXECUTlON COPY Page 30 01 116
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1.7 Agreement Framework

(a) This Contract establishes Ihe general terms and conditions applicable lo
Contractor's provision, and Servica Recipient's receipt 01, Ihe Services
contemplated by this Agreement.

(b) This Contrae! contemplates Ihe execution by SelViee Recipient amI Contractor of
one or more statements 01 work (each such statement 01 work, an "SOW'; and
colleclively, Ihe "SOWs"). Each SOW 8hall be effeclive when 8XSCUtect by en
aulhorized representativa 01 Servios Recipient and en authorized representativa
of Contractor. The terms 01 lhis Contrae! shall be deemed lo be incorporated ¡nto
each saw and Ihe larms and eonditions sel forth in this Conlrael shall govern
Contractor's provision 01 Services under Ihe SOW, exeept lar provisions in this
Contraet Iha! are specifieally excluded or modi/ied in sueh SOW, which shall
Include a relerenee to ¡he applieable Clause in this Contrae! being exeluded or

(e) Each SOW shall conlain, lo the extenl applicable: (i) a desc(¡plion 01 any
lechnology lo be developed or provided, any systems or operations lo be
supported or Ihe Services lo be performed by Contraelor: (ii) the relaled lasks lo
be eompleted by Service Recipient and any third parties {olher lhan Conlreetor's
Associales}; (iii) a lisl 01 all Conlractor IP lo be incorpora!ed or embedded in, or
¡ha! are necessary lor Ihe use, operation or malntenance 01, Ihe Deliverebles,
syslems or Services; (iv) a description 01 Ihe Deliverebles lo be produced by
Contraotor, including any aeceplance eriteria lor sueh Deliverables; (v) Ihe
performance and delivery schedule; {vi} the Feas lo be paid lo Conlractor; (vii)
Ihe descrip!ion 01 any serviee levels; and (viii) such additional inlormation as Ihe
Parties may wish lo inelude.

(d) As 01 Ihe Effeotive Dale, Servioe Recipíenl and Contractor will simultaneously
with Ihe execution 01 this Contract, execule ¡he lollowing SOWs:

(i) IheO&MSOWforPRHTA;

(ii) Ihe O&M SOW lar Metropistas; and

(iti) Ihe Build SOW lor PRHTA and Metropistas.

1.8 Serviee Reciplents

(a) PRHTA is entitled lo receive Services under Ihis Agreement pursuanl lo Ihose
SOWs exeeuled by Contractor and PRHTA. Me/ropislas is enlitled lo reeeive
Serviees under this Agreement pursuenl lo Ihose SOWs executed by
Contrector and Melropistas.

(b) A Service Recipient may exercise Ihe righls and remedíes set forth in this
Agreament solely wilh respee! lo an SOW exeeuled by such Service
( Recipienl, and in no evenl shall sueh Serviee Recipien! exereise righls or
remedies in respee! 01 an SOWexeclIted by the other Serviee Reeipien!.

EXECUTION COPY _ _ _ _'-P,a Q€ 31 of 116
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(e) In no event shall PRHTA be liable lor the acts al omissions 01 Metropistas
urlder this Agreement, Melropistas be liabla lar the aels al omissions 01
PRHTA under this Agreemenl 01 PRHTA and Metropistas be joinlly end
severally liabla, in each case, including with raspee! lo Ilon,peyment ar any
o/her Loss arising in connection with Ihis Agreement

(d) Metropistas' exercise 01 a terminatioll righ! under this Agreement shall only be
in raspee! 01 those SOWs executed by Metropistas_ PRHTA's exercise 01 a
termination right under this Agreement shall only be in raspee! 01 Ihose SOWs
exacuted by PRHTA

(e) Referenc€s under this Agreemen! lo Ihe lerm:

(i) "O&M SOW" shall mean Ihe O&M SOW or O&M SOWs exeeuted by
eilher PRHTA or Melropislas;

(U) "Service Reeipient" shall mean (i) PRHTA, in raspee! 01 an SOW
exeeuled by PRHTA and (ii) Melropistas, in respee! 01 an SOW
execu!ed by Melropislas; anct

(iil) "Services" shall mean lhose Services beirg provided lo (i) PRHTA
under an SOW exeeuted by PRHTA or (ii) Melropis!as under an SOW
exeeuted by Melropistas.

(f) A Service Reeipient shall have the righl lo lermínate a Servies under an SOW
exeeuled by sueh Servíee Recipient in the avent lhe olher Service Recipient
has termina!ed ¡he same Service under Ihe same or another SOWexeculed
by such other Service Recipienl pursuant lo Clause 11(d), Clause 24.2,
Clause 24.6, Clause 247, Clause 24.8, Clause 24.9 or Clause 25.11.
Metropistas shall have Ihe righl lo terminate the O&M SOW il Ihe PRHTA
terminales ils reeeip! of the Serviees in respee! of the CSC.

1.9 No Parlnershlp, Joint Venture or Other Fiduciary Relationship

Nothing in Ihis Agreement shall be deemed to constilute eilher Parly a partner, agen\, employee
or representative 01 Ihe olher Party. or to ereale any fiduciary relalionship between the Partí es.
Contrae!or is and shall remain an independenl contrae!or in the pelformance 01 this Agreement.
maintaining completa control of ils parsonnel, workers, Subeontrae!ors and operators required
for pelformance oflhe Services.

2.1 General Responsibililies 01 Contractor, PRHTA and Metropislas

Each Party will:

('l fully cooperate with eaeh olher lo ensure timely progress and lulfillmenl of this

(bl ae! reasonably with respeet lo matters that relate lo lhis Agreement;

EXECUTlON,,'~OC"'--_ __ _ _ _ _ _ Page 32 of 116
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(e) hald meetings (including rneetings relating lo planning, review and issue
resolution) as necessary or as required by the applicable SOW or the Test and
Evaluation Master Plan and report lo the other on a regular basis or as
required by Ihe Test and Evaluation Master Plan in arder lo keep the olher
fully informed ofthe progress ofwork required under this Agreement; and

(d) work logether lo establish inleroperability with Ihe eleclronic lolllng system
implementad by Servies Reclpíen! on ¡he toll roads.

2.2 Contractor's Responslblllties

{al To enable timely progreS$ and complelion of this Agreement, Conlractorwill:

(i) eslablish, procure and maintain al! necassary laeilities, resourcas and
parsonnel ror tha effective conducl and managemenl 01 iis

(ii) record any material changes in relevant facilities or procadures and
make this record available to Service Recipienl on requesl; and

(iil) provida all reasonabla assislance required by Serviea Recipient.

lb} Contraclor shall inform Serviea Recipient immadiately il it bacomes reasonably
apparenl al any slage that implamenlation of the Tolling System may not be
eapable of completion in a manner consistent with tha requiremanls under this

{e} Contractor shall cooperale al Ihe reques! 01 Service Recipient with any lhird
party serviee provider identified by Service Recipien! where neeessary lo
ensura tha integrated and efficient eonduel 01 Serviee Reeipianl's operations,
inciuding allowing Service Recipient to inspect Contfacto~s work al any slage
01 the performance 01 the Sarvices or its obligations under this Agreement.
Without limiling the loregoing, Contractor shall provida sueh reasonable
assistance lo Service Recipienl and any Ihird party serviee providers as
Serviee Recipient may request 110m time.lo-time.

2,3 Particular Obllgations


(a) shall provida the Serví ces in accordance wilh this Agreement;

(b) shall use Best Practlces in providing the Services;

(e) aceapls full responsibilily lor all eonstruction means, methods and techmques
used in the performance olthe Services; and

(d) shall provida everylhing (including labor, materíals, plant and equipment)
\ necessary to provide the Services, including Ihe design, supply, construction
and commissioning 01 tha Tolling System

EXECUTlON COpy'--_ _ __
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Without limiling ¡he foregoing, Contractor shall:

(a) provide advice concerning Ihe operation alld use 01 ¡he Tolling System;

(b) provida traimng and instruclion lo Servic6 Recipient's personnel in ¡he use of
Ihe Tolling System and ¡he interpretation 01 ¡he Design Documentation in
accordance wilh Ihe Requirements Specificatioll;

(e) promptly resolve Tolling System deficiencies or operational difficulties;

(d) perform administralive tasks (includillg submission 01 time sheets lor day
works, il required, and ¡he provision 01 prescribed reports); ami

(e) ensure all reports and commumcations are in Spanish or English, as Servíce
Recipient elecls.

2.4 Tolling System

Contraclor shall ensure !ha! the Tolling System:

(a) complies with the requirements and specifications se! forth in the Requirements
Specification; and

(b) ie Tag Interoperable, il the Service Reeipienl elects the Oplion Services
associated with making ¡he existing Service Reeipienl lanes Tag Interoperable.

2.5 Asslstance

Conlraclor shall:

(a) comply wilh Ihe Requirements Specifica!ions; and

(b) eomply W1th any direclion or order given by Service Reeipient relating lo Ihe

2.6 Plant and Equipment

Conlraelor shall ensure Ihal all 01 its plan!. systems, hardware, software (other than
subscription-baeed, off-the-shelf software, (i.e., SalesForce software) and olher assets and
property comprised or used in, or for ¡he purposes 01, the Tollroads will be either:

(a) owned by Conlraclor; or

(b) ¡he sUbject 01 an agreement (such as alease or purchase aareement):

(i) under which it has ¡he right lo aequire ownership of them lor nominal
eost at the end 01 ¡he term 01 sueh agreemen!;

( (ii) which ¡neludes a right for il lo assign its righls and obligations under
such agreernent to Servíee Recipient (or its nominee) prior lo the end

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01 Ihe lerm ollha! agreemerlt, on termination of this Agreement upon
Ilotica by Service Recipient, ar pursuant lo Clause 4, 1(b); and

(ili) which will no! terminate, be suspended af impose more onerOU$
lerms on Service Recipient il Service Reciplent were lo exercise any
of ¡ls righ!s under this Agreement.

(e) Durirlg ¡he Term, and until, when applicable, transler of title ¡hereto is required
lo be transferred by Contractor 10 Service Recipient hereunder, Service
Recipienl shall no! place, ar allow others lo place, any Encumbrances on the
essets 01 Contractor wilhout Contractor's prior written consen! ar as otherwise
required by applicable Law.

2.7 Acknowledgement by Contractor

Conlraclor agrees lhal all matlers pertaining lo the island-wide toll road syslem, or any maltar
which could potentially impact lhe Tollroads or users ollhe Tollroads shall be diseussed with
and approved by Service Recipient prior lo lhe execution or implementation 01 lhe maller.

Contraclor accepls Ihe lollowing risks (excep! as olherwise expressly provided in Ihis

(a) (Cosl): the actual cosl of or the performance 01 the SeNioes being greater
than lhe cosl estimaled;

(b) (Time): lhe lime or period of performance 01 lhe Services being grealer than
estimaled, suqect to the oCGurrenee 01 an Exlension Event under Ihe Build

(e) (Fi! lor purpose): the Tolling System nol being fit lor ils inlanded purposes as
specilied in, or ascertalnable from this Agreement;

(d) (Obsolescence): technical obsolescence oCGurring in relalion lo any
equipment or syslems (including Ihe lolling system of anolher Tollroad Service
Provider) used, or proposed lo be used, in relalion lo Ihe Tolling Syslam;

(e) (Tolling): Ihe Tolling System nol operaling effectively;

(1) (Laws and Taxes): any Law or laxes (or change in Law or laxes) adopted altar
the Effeolive Date 01 lhis Agreement affecting Service Reeipient's rights,
obligations or liabililies under this Agreemenl;

(g) (Labor snd employment selion): labor and employmenl malters;

(h) (Weather): inclemenl weather;

(i) (Requiremenls Speclfioation): the risk tha! compliance with the Requirements
Specifioation will no! salisfy Contraclor's obligations under !his Agreement;

~t~page 35 01 116
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UJ (ETeS Activities): all risks associeted with providing the 5ervices including
subjecl lo Ihe 16rms of lhis Agreement, any changas in the Services causing
deley or increased cosl;

(k) (Interfaces): the interface between performing the Servicas al1d any other
works, infrastructure, plan!, equipmenl or systems;

(1) (Approvals): delay in, or (efusel by, any Authorily in granting an Approval or
the conditions of en Approval or 01 a legal challenge lo an Approval or
ablsining en Approval subjec! lo Danditions unsatisfactory lo Contractor;

(m) (Insurance): Ihe ability lo oblain and maintain insuranc€s required by this
Agreement, or the adequacy olthose insuraneas;

(n) (Salety): any workplace health and salety matters; and

(o) (Environmental): any environmenlal mattar.

(p) (Condition 01 Facilities): tha condition or state 01 repair 01 the land, or any
slructure or olher lhing on, aboye or adjacenl lo, or under Ihe land, as
described in Clause 9.l

2,8 Qptional Servlces

Serviee Recipient may eleel to raceive any 01 the Oplional Services under lhe eonditiolls sel
lorth under this Agreament.

Serviee Recipient has alected lo receive those Optional Servioes as identified in Annexure D as
havíng been elecled, and such eleeUon shall not change the Contractor's obligations in respec!
of Tolling System Completion and Close-Out as sel out in this Agreement, including completion
by Tolling Day One, lhe Projecl Schedule, Performance Seourity, Project Milestones, Milestone
Credit and Milestone Date.

Following lhe Effeclive Date, Servioe Reeipíent may eleel from time to lime upon notice to
Conlractor lo raeeive any additional OpUonal Serviees identified in Annexure D. Such eledion
by Serviee Recipian! lo receive any Oplional Services may require modificalion lo certain terms
and conditions 01 this A!,Jreement in respeel 01 the implanlation 01 such Customer Serviees and
the Oplional Servicas (e.g., the Project Schedule and Performance Seeurily) and the Partíes
shall agree lo such modifications undar an addendum to be executed batween the Partíes no
later than fifteen (iS) days afler the date the election has been notified lo the Contractor by
Serviee Reclpient.

3.1 PRHTA as an Authorily

Contractor acknowledges and agrees tha\:

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{a} nothing in this Agreement will in any way unlawfully restrict or otherwise
unlawfully alleel Ihe unfettered discretion 01 PRHTA lo exercise any of ils
statutory functions or powers; and

(b) anything which PRHTA does, falls lo do, or purports lo do, pursuant lo its
staMory funclions or powers or in Ihe cOllrse ollhe creation or development
01 lis policies and procedurss and strate{lic decisions WIII be deemed no! lo be
an ael or omission by PRHTA undar this Agreement and will no! antilla
Contractor lo make any Claim against PRHTA arising out 01 lhe sul::ject mallar
ofthis Agreemenl.

3.2 Other Authorltles

Contractor acknowledgss and agrees Ina\:

(a) Ihere are Aulhorilies (olner tnal'\ PRHTA) wilh jurisdietiol'\ over aspects of tne
Services al'\d parts oftne Siles;

(b) sueh AUlhorities may from time lo lime exercise tneir statu!ory functions al'\d
powers il'\ suen a way as lo disrupt, il'\!erfere with or otnerwise alfeet Ine
Services; and

(e) except as o!nerwise provided il'\ !hís Agreement, COl'\tractor bears the fult risk
01 all oeeurrel'\oos 01 the kil'\d referred lo il'\ Clause 3.2(b} al'\d will 1'###BOT_TEXT###1 be
enlítled lo make al'\y Claim arising out 01, or in (my way in eonnection with,
sueh oeCUlfences, except lo the extent Service Recipíent receives
eompensation relating to such occurrel'\ees Irom the Authorities in which case
sueh eompensation shall be passed Ihrough to the Contractor as they relale lo
the Serviees.

3.3 Servlce Reeipient Representative

(a) Upon notíce lo COl'\tractor, Service Recipient may appoil'\t a person to be its
representative for any purpose lll'lder thís Agreemel'\t and, upon notice to
COl'\tractor, replace Buch person wilh anolnar person as a representative.

(b) COl'\tractor shall comply wilh 0111 dlrectiol'\s, instructions al'\d olher notiees given
or purported lo be given ul'\der this Agreemen! by each Serviee Recipient's
represel'\tative. II Contractor reasonably determines that a conflict, difference,
or discrepancy exists, belween the Service Recipients based 01'\ direetions,
instructions al'\d other notices given or purported to be given under this
Agreement, Contractor shall provide notíce 01 sueh eonflict, differenee, or
diserepancy lo both PRHTA al'\d Metropistas (il'\ accordance with Article 36),
and il no resolution has been reaehed within fifteel'\ (15) Business Days afier
sueh notíce, Contractor shall Ihel'\ be relieved Irom its obligatiol'\S in conl'\ection
with sueh eonflict. difference, or discrepal'\cy until such tima as a resolution is
reached and commul'\ieated to Contractor.
(o) Unless expressly provided otherwise il'\ Ihis Agreement, a representative 01
Servioe Reeipient appointed pursuant lo this Clause 3.3 is not obliged to

e --0 ~W
--- ~k
page 37 of 116
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review, ar commen! UPOIl, any documentation or information which Contractor
gives lo Serviee Recipient in respee! 01 the Services.

3.4 Contractor's Representatlve

(a) Contractor shall, withill three (3) Business Days afiar the Commencement Date,
give notice in writing lo SeNiee Recipient in which il nominales the person lo be
ils project manager and act as a representative 01, and be authonzed lo act on
behalf 01, Contractor in discharging ¡ts funclions under this Agreemenl.

(b) Contractor shall appoint Ihe parson as proJect manager, upon the written
approval of Sarviee Recipient.

(e) Conlractor shall ensure lhat Ihe project manager:

(1) speaks and wnles f1uent Spanish and E~lish;

(il) is fully acquainted with all the requirements of this Agreement, including
the Requirements Specification, Ihe component parts 01 the Toliing
System and the Tesl and Evaluation Master Plan;

(iii) upon request by Service Recipient. prepares any requlred written

(iv) accepls principal responsibility lor preparing all necessary reports and
plans pursuant to this Agreemenl;

(v) upon reasonable nolice, attends aU meetings requlred by Service
Recipient; and

(vi) nolifies Service Recipient il il becomes reasonably apparenl at any slage
Iha! the Tolling System or any component 01 Ihe Tolling System, when

(A) may produce inconsistent or unintended consequences for
Serviee Recipient;

(B) may breach the InteUectual Property rights 01 a third party; or

(C) may be inappropriate lor operation in conjunclion wilh the
operating system and olher facilities utilized by Service

3.5 Acknowledgment 01 Interoperability Agreemanls

(a) Contractor acknowledges tha! aftar !he Effective Dale, Servioo Recipien! may
negoliale and enter into Interoperability Agreements, As 01 !he Effective Date,

Contractor has lo diligently work lo provide all necessary information lo
( Servioo Recipient regarding Interoperability 01 the Tolling System such Iha!
Service Recipient can include such inlormalion In its Il1leroperability
Agreements. Serviee Recipient shall share the reqUi~

EXECUTlON COPY Page 38 01 116
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Interoperable with Contractor on or aftar 5ervice Recipient has enterad into
Ihe Interoperability Agreements.

(b) Contractor confirms Ihal il is aware 01 Ihe obligatiorls lo establish
Interoperability Agreements wilh each Tollroad 5ervice Provider as mal' be
required ¡rom time-lo-time end Ihe industry protocols and rights Ihal gene rally
are created under Ihe Interoperabilily Agreements and represents, warrants
and undertakes Ihal il will:
(i) perform lIs obligalions under ¡his Agreement al all Urnas in a menller
which will aneble Serviee Recipient lo fully perform lIs obligations
under Ihe industry practices lar Inleroperability;

(ii) nol do anylhing whieh may eause Serviea Recipienl lo be in breach of
ils obligations under lhe industry atandards and prolocola for
lnleroperability; and

(iB) permit Service ReGipienl lo exercise ils righls under Ihe industry
slandards for Inleroperabilily.

(e) The Inleroperat:illty Agreemenl with respeet lo the Tolling Syslem shall be
eompleled al least 240 days prior to Tolling Day Three in order lo allow
sufficient lime lor Contraclor lo develop the necessary inlerfaees lo ensure the
Tolling Syslem will be lnteroperable by Tolling Day Three.

(d) Contractor represenls, warrants and underlakes lo ensure ¡hal Ihe Tolling
System will be Interoperable and tha!:

(il on or prior lo Close-Out, Conlractor shall bear Ihe costs wilh respect
to any ehanges lo Ihe Tolling Syslem lo achieve Interoperabilily and;

(ii) afler Closa.Out. Service Recipíenl shall be responsible for eosls anct
expenses related lo changes lo lhe Tolling Syslem required lo be
made solely due lo a change in the requiremenls lo be lnteroperable.

3.6 Ralationshlp of Contrac!or and Service Reeipian!

In providing the Sarviees. Conlraclor shall use ils besl ef¡orls lo:

(a) eoordinate its work with Serviee Recipienl and Service Reeipíent's
SUbconlrac!ors' work lo minimize any delays;

(b) no! obslruct. delay or inlerfere with Serviee Recipient's work; and

(el no! damage Serviee Reeipient's work.

4.1 Genarally

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(a) The Equipmelll and related Design Documentation shall al all times end lar al
purpOsas relevan! 10 this Agreemenl conform lo the Requirements

(b) Contraclor transfers title in each ílem, uní! or module 01 the Equipment lo (x)
each Serviea Recipient jointly far Equipment usad lo provida shared 5aIVices
end (y) a Service Recipiant for Equipment usad lo provide non-sharect
Services lo such SeNies recipienl, in each case free end clear 01 all
Encumbrances on lhe earlier 01 (i) Date 01 Tolling System Complelion end (ii)
¡he lermination 01 this Agreement. On and alter Ihe transrer 01 tille, Serviea
Recipient shall be responsible for Ihe risk of loss or damage lo lhe Equipment
during Ihe Term of this Agreemenl, except lo lhe extenl in any manner directly
or indirectly eaused or, oeeasioned, or eonlributed lo, in whole or in part, by
reason 01 any negligence or breach 01 Ihis Agreement by Con!raclor or ils
Subconlractors. Conlfactor agmes lo exeeu!e any doeumenls (or take any
other actions) as may be neeessary, or as Service Recipien! may reques!, lo
perfec! the ownership of Serviee ReGipíenl in the Equipment.

(e) Servíce Recipíenl shall nol, dírectly or al ils direetion, place any addítional
equipment, maleríals or signs lo the Tolling Points without the prior written
consent 01 Conlractor.

(d) Contractor will inslall and integrale Ihe Equipment and provide Iraining lo
Contractor's personnel lo Ihe exlent specified in the Requiremenls

(e) No subslilulion or modifieation 01 the Equipmenl or any componenl 01 the
Equipment lrom Ihat described in the Requirements Speoification or In any
Design Documenlation approved by Service Recipien! may be made by
Conlrac!or prior lo delivery wilhoul Ihe written consen! 01 Servíce ReGipíen!.

4.2 Equipment Warranty

Contractorwarranls and covenanls tha! the Equipmenl shall:

(a) be free Irom Defects in ma1erials, design, workmanship and installation;

(b) comply wi!h the Requirements Specification;

(e) ba new and 01 good and merchan!able quality;

(d) be free lrom any Encumbrances;

(e) be safe and lit lar Ihe purpose for which il was designed and lor the purpose
specified lor tha! Equipmenl in lhe Requiremenls SpeGificalion; and

(1) be a complete sel 01 lhe equipmenl required lar lhe Tolling System to conlorm
( lo the Requirements Specification and lo operate !he Tolling Sys!em.


_ _ _"pagc 40 01 116
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5.1 Tolling Syslem

(a) Each Service Recipient shall own and have all righl, title anó ¡nteres! in and lo
the Tolling System joinlly wilh Ihe other Servies Recipient, with Ihe exception
01 Third Party Software and Contractor Pre-Existing IPR Iha! is embedded in
lha Tolling System Iha! are no! Ilcensad or assigned lo Servics Recipient.
Contractor hereby irrevocably assigns, Iransfers and conveys lo each Service
Recipienl 0111 01 lis right, title and interes! in and lo the Developed IP forming
part 01 Ihe Tolling System far Servics Recipier¡t's use in Ihe Commol'\wealth of
Puerto Rico in connection with the Tolling Syslem. Conlraclor shall execule
any doeuments (or take any olher actions) as may be neeessary, or as a
Service Recipíen! may roquesl, lo perfecl !he ownership of Servíce Recipíen!
in the Tolllng System. Each Service Recipien! may designala anolher entity
for Ihe ownership in !his Clause 5.1, in whieh case Ihe references lo Service
Recipient in Ihis Clause 5.1 shall be to such el1lity.

(b) To Ihe extanl Con!rac!or raquires use 01 the Tolling Syslem in conneclion with
providing the Serviees, Serviee Recipient grants Conlraclor a limited, royalty-
free, non-exclusive, non-transferable Ilcense lor Conlraclor and Contraclor's
Associales lo access and use the Tolling Syslem during Ihe Term and solely
lo the exlent necessary lor Conlraclor and Conlractor's Associates lo perform
Iheir obligalions hereunder.

(e) Service Reeipiant grants Conlractor a limited, royalty-free, non-exclusive, non-
Ilansferable lieense on as-is basis wíthout any warranties lor Conlractor
and Contraclor's and use Ihe Tolling System lo provide
services lo third Ihat such Ihird parties are bound
by i i li i il Ihose 01 Conlractor hereunder.
Contraclor shall indemnily and hold harmless Serviee Recipien!, and
ils Associates Irom againsl any Loss relating lo a Claim arising direclly or
indireelly in i with, relating lo or arising oul 01 the license granled
under Ihis Clause 5.1(c}.

6.2 Servlee Recipiant IP

To Ihe extenl Contractor requires use 01 SeNiee RecipientlP in connection with providing Iha
Services, Service Reeipíant grants Contraclor a limited, royalty-Iree, non-exclusive, non-
Iransferable license for Conlractor and Contraclor's Associates lo aeeess and use Ihe Service
Recipient IP (but only lo the extent permiUed by any applicable third party license agreemenl)
during Ihe Term and solely lo Ihe extenl neeessary lar Conlractor and Contractor's Associales
lo perform Iheir obligations hereunder.

6.3 Contractor IP

(a) With respec! lo Contraclor IP Iha! is no! Software, lo Ihe extenl Serviee
\ Recipient requires use of any sueh Contractor IP Iha! is used lar, or embedded
in, the Serviees, Contraetor hereby grants Service Recipienl a royalty-free,
irrevocable, non-exclusive ¡¡cense lor Service Recipient lo access, use, W
__ .~~G
EXECUTION CON Page 41 of 116
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mainlain and modify such Contractor IP in Ihe Commonweellh 01 Puerto Rico
in connection with the Tolling System. 5uch license extends lo lhlrd parties
providing services lo Service Recipient t the lor such
services lo be provided such ¡hird , Iha! such
third partíes are bound by ti I Service
Recipían! hereunder.

(b) 1I Contractor wishes lo use Contractor IP thal is Software tha! Is no! listad in
an SOW, Contractor 8hall oblain Servioa Recipient's approval 01 any such
Software prior lo Conlraclor's use 01 slIch Software in cormection with the
8ervices. II any such Software is used in cormection wilh lhe Services,
Contraclor hereby grants and shall procure ¡rom any applicable Ihird party Ihe
righl lo gran! a royalty-free, irrevocable, non-exclusiva license lo Service
Rec1pianl lo aecess and use sueh Software in Ihe Commonweallh of Puerto
Rico in conneetion wilh Ihe Tolling Syslem. Sueh licensa axtends lo I~rd
partíes providing services lo Service ReGipienl lo Ihe exlenl necessary for
such sarvices lo be províded by such Ihird partíes: provided, however, Ihat
such Ihird parties are bound by confidenlialily obligations similar lo Ihose of
Service Recipian! hereunder.

(e) With respee! lo Conlractor IP Ihal is embedded in or practicad by a Deliverable
Ihal is nol Developed IP, Conlraclor hereby granls Servíca Reeipienl a royally-
frea, perpelual, irrevocable, non-exclusive license for Service Recipíenl lo
access, use, copy, maínlain and modily such Conlraclor IP in Ihe
Commonwaallh of Puerto Rico in conneclíon wilh such Daliverabla. Wilh
respecl lo Conlraclor IP Ihal is Developed IP, Servica Recipienl hereby granls
Conlraclor a world-wide, royalty-free, perpelual, irrevocable, exclusive ~cense
lor Conlraclor lo access, use, copy, mainlain, modify, sell, and sublicense
such Conlraclor IP.

(d) The Partíes agrea Ihal Conlraclor shall deposi! Ihe source code rala!ad lo
Conlraclor IP wilh an eserow agenl agread upon by Ihe Parties after Ihe
applieable dates se! lorth in Ihe Build SOW and such souree eode shall
immedialely be released lo Service Recipienl lollowing Ihe occurrenee 01 an
Evelll of Default. Upon sueh release, Service Recipian! may use such source
code only in eonneclion wilh the Tolling Syslem alle! no! lor resale or

5.4 Developed IP

(e' Unless olherwise agreed lo by Ihe Parties, each Service Recipielll shall own
and have all righ!, litle and inleresl in and lo Ihe Developed IP joilltly with the
other Service ReGipien!. Contrae!or hereby irrevocably assigns, transfers and
conveys!o eaeh Serviee Reeipíen! all 01 ils rlghl, litle and inleresl in and lo the
Developed IP. Conlraclor shall execule any documellls (or lake any olher
aclions) as may be necessary, or as a Service Recipian! may request, lo
perlecl Ihe ownership 01 Service Recipienl in Ihe Developed IP. Each Service
Recipien! may designa!e anolher entily lor Ihe ownership in lhis Clause 5.4, il!
which case Ihe relerences lo Service Recipienl in this Clause 5.4 shall be lo
such olher enlily.

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(b) Contractor shall cause each Dell'verable the! is Developed IP lo: el) after
acceptance by Servies Recipient, (A) materially conform lo and perform in
8ccordanoe with lhe applicable Relatad Documentation, acceptance critería
and agreed-upon specifications, including operating in connectioll with Ihe
applicable Servies Recipían! systems end (B) be provided on media that Is
free af defaels in materials end workmanship, under normal use; (Ii) no!
contain any virus ar disabling code (and Contractor shall use commercially
reasonable efforts no! lo introduce any virus ar disabling code ¡nlo any Serviea
Recipíanl systems); end (iji) nol contain any Software tha! requires as a
eondition 01 i!s use, modification or distribution tha! such Software (or other
Software incorporated inlo, derived from or distn'buted with such Software) be
(A) disclosed or distributed in source code form, (B) licensed for !he purpose
01 making derivative works or (C) redis!ributed at no eharge.
(e) Contractor shall provide Service Recipíenl with all Related Documentation
(and olher documentation that is Intellectual Proparly) !ha! is cuslomarily
provided with the applicable type 01 Services, Deliverable and Exit Plan and
such Related Documentation (and other documentation ¡hat is Intellectual
Proparly) shall be accurate, curren! and complete and sufficient lo enable an
individual reasonably skilled in Ihe applicable subject matter to use and
maintain !he applicable Deliverable.

5.5 Consents, Approvals and Requests

(a) Contraclor shall, al ils cosl and expense, obtain, mainlain and comply wilh Ihe
Contraclor Consenls, 11 any. Service Recipient shall comply with the
Contractor Consents. In the event Contractor is unable to obtain a Contraetor
Consent, Contraetor shall implemant (a! its own caSI and expense), subject !o
Serviee Recipient's prior approval, a work around as necessary to enable
Contraetor to provide Ihe Services without such consent. Upon Service
Recipienl's request, Canlraclor shall pravide Servíce Reeipíent with evidence
01 any Canlractor Cansen!.

(b) Service Reeipían! shall, at ils casi and expense, obtain, maíntaín and comply
with the Servíce Reeipíenl Consents, il any. Contractor shall comply with the
Service Recipíant Cansents. In the event Sarvice Recipíant ís unable to obtain
a Servíce Recipient Consent, Serviee Recipien! shall implement (al ils own
cosl and expense) a work around as nacessary to enable Contractor to
provida the Services wilhout such consen\.

(e) Eaeh Party shall reasonably cooperare with the other in obtaining tha Service
Recipiant Consents and Contractor COrlsents, as applieable, including by
executing raasonable confidentiality agreemants il required by the applieable
third party.

5.6 Use of Service Recipient's Marks
( The Tolling System, Servieas and Tags shall be branded by Contractar as determined by
Servíce Recipien!. No use 01 the Servíce Recipíent trndemarks (ineluding Ihe Autoexpreso ©
~nark) (the "Marks") pursuant to this Agreement shall ereate any ownership ri:~~1r

EXECUTlON COPY Paga 43 of 116
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in (he Marks. AII use ofthe Marks, including lhe goodwill associated therewith, shall ¡nure lo ¡he
sale benell! 01 Servios Recipient. Contractor shall comply with Service Recipient's brand and
quality control guidelines wilh raspee! lo such Marks, as provided lo Contractor from time lo
time. To the extent Contractor and Contredor's subcontraclors require use 01 ¡he Marks 8S
described aboye, Servioe Recipient grants a limited, royalty-free, non-exclusive, non-
lransferable licensa lar Contractor and Contractor's subcontractors lo use Ihe Marks.

6.1 Warrantles

Contractor warranls and covenants that:

(a) no Intellectual Property rights or other protected rights of any person will be
breached or infringed in performing the Services;

(b) the design, construction, delivery, supply, use or enjoyment of the Deliverables
in accordance with, Of as contemplated by, this Agreement will not infringe any
Intellectual Property rights or other protected rights of any person;

(e) 1I is no! aware of any claims lhat the Deliverables or their use or enjoyment in
accordance with, or as contemplated by, thls Agreement infringe or will
Infringe any Intellectual Property rights or other proteeted righls of any person;
(d) it has (or will at the relevant time obtain) Ihe authority to grant lhe rights
granted to Serviee Recipient under Article 5 and Article 6 in respeet of all
Intellectual Property rights whieh are owned by third parties.

6.2 Ownership 01 Data

To the extent Conlractor has or acquires any rights in Service Recipient Data, Contractor
hereby irrevoeably assigns, Iranslers and conveys ro Service Reeipient (or Ihe entity desig nated
by Serviee Recipient) all of ils right, title and inlerest in and to Service Reeipient Data. Upon
Service Recipient's request, Contractor shall execute any documents (or take any other actions)
as mal' be neeessary, or as Service Reeipient mal' requesl, lo enforce these rights 01 Serviee
Recipient in Service Reeipient Data.

6.3 Correction 01 Errors

Conlraclor shall promptly (a) notify SeNice Recipient of any damage, errors or inaccuracies in
Service Recipient Data if and when Contraetor becomes aware of such damage, errors or
inaccuracies, (b) correct any sueh damage, errors or inaccuracies at its eost and expense to the
extent such damage, efrors or inaccuracies are eaused by Contractor's ae! or omission and (el
corree! any sueh damage, errors or inaccuracies upon SeNice Recipient's request and at
SeTVice Recipient's cost and expense lo the extent sllch damage, errors or inaccuraeies are not
eaused by Contractor's act or omission. In the event 01 a dispute as to which Party caused sueh
\ damage, error or inaccuracy, Contrae!or shall promptly correet slleh damage. error or
inaecuracy at its cast and expense as directed by Service Recipient pending the resolution of
such dispute in accordance with Article 32. If it is determined through procedures tha!
Contraetor dld not cause sueh damage, error or Inaccuracy, Servlce Reclplent shall comR~J1Páte

page 44 of 116
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Contractor lar Contractor's perrormance of ¡he services necessary lo correel such damage,
error or inaccuracy.

6.4 Dala Securlty and Computer Acoess
{a} Contrac!or shall comply with the Service Recipient Data Safeguard&
Contractor shall comply wilh arly modifications lo Ihe Servica Recipient Dala
Safeguards communicaled lo Contrnctor by Service Recipienl. To Ihe extent
Iha! such modificatiorls materially increase or decrease Conlractor's cosls lo
provide the Services, the Parties shall rlegotiate en equitable adjuslment lo Ihe
Feas wilh raspee! lo such increased ar decreased cost in accordance with
Artiele 31.

(b) Contractor shall, and shall cause Ihe Personnel lo, nol lamper wilh,
compromlse or circumvenl any Service Recipient Data Saleguards.
Conlraclor shall ensure Iha! only those users who are specifically authorized
lo gaill access to Service Recipient's syslems gain such access. eonlractor
shall preven! unauthonzed destruclion, alteralion or loss 01 illlormatioll
contained in Ihe Systems.

(e) 1I al ally time either Party determines that (i) a member 01 Ihe Personllsl has
aUempted lo circumvenl or has circumvented the Service Recipienl Dala
Saleguards, (ii) an unauthorized person has accessed or may access Ihe
Service Recipienl systems or (iii) a person has engaged in aclivities that may
lead lo Ihe unauthorized access, deslruclion or alteralion or loss of Ihe
Confidelltial Inlormation 01 Service Reeipient, then, in each case, as soon as
Contractor is aware 01 such delermination, Ihen eontractor shall immediately:
(A) notify Service Recipient; (8) terminate any such person's access; and (e) il
Contractor was responsible lor the circumvention, attempted circumvention,
unauthorized access, destruction or alteration, (1) investigate and cure such
circumvention, aUempted circumvention, unauthorized access, destruclion or
alteralion and (2) provide satisfactory assurance lo Service Recipient thal
such oircumvention, attempted circunwention. unauthorized access,
destruction or alleration shall nol recur. 1I Service Recipient reasonably
determines Iha! a member 01 the Personnel has altempted lo or has
circumvenled the Service Reoipient Data Safeguards, Service Recipient may
immediately terminate such membe~s access lo Ihe Systems. Failure to
comply wilh Ihe Servioo Recipient Data Saleguards shall be deemed a
material breach 01 this Agreemenl.

(d) Service Recipient may revlew any inlormation, electrollic mail
communicalions, or other data stored on or contained In any computer hard
drive, disk, or any olher storage medium located at Service Recipient's
premises to determine whelher there has been any breach 01 security or
violation 01 this Agreement, regardless 01 whether such computer hard drives,
disks, storage media or electronic mail communications are on equipment
owned or leased by Servioe Recipient or are brought or sent onto Service
\ Recipient's premises by Contractor or a member 01 Ihe Personnel. 1I Service
Recipiel"lt condudes fha! there has been any breach 01 security or this
Agreemen! by eontractor or a member 01 the Personnel, no!withstanding

EXECUTlON ,'=0,','_ __
Poge 45 of 116
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anything lo the contrary, Serviea Recipían! may disclose (my computer ¡lles or
electronic mail message lo third partías, includmg law enforcemenl oflicíals, as
Service Recipían! deems appropriete wilhout prior natíce lo any individuals
who may have written, sen! or received such files or massage. To the extent
no! prohibited by Law, il Contractor Is idenlified by name in any such
disclosure, Serviea Recipien! shall provida Contractor natíce 01 such
disclosure as soon as reasonably practical alter such disclosure.

6.5 Prlvacy and PI!

Contractor shall comply with the Servica Recipient Privacy Policy. In arder lo comply with
applicable Law concerning proeessing 01 PII, Ihe Parties shall each cause its respective
a!fillales to exeeule a dala Iransler agreement in a lorm reasonably acceptable lo Service
Recipienl and lo make such amendments lo such agreement as may be required under
applicable Law Irom time-to-time. Wilh respecl to any PII, Conlractor shall:

(a) process a[1 PII collecled by Conlraclor only lo perlorm its obligations under Ihis
Agreement and as specilically permilted by Ihis Agreemenl, or as olhelWise
Inslructed in writing Irom lime-lo-time by Selvice Reeipient;

(b) nol use sueh PII tor any other purpose, incuding for lis own commercial

lo) for ¡he purposes 01 this Agreement, aeknowledge Ihal PII ineludes sil
information regarding vehicle ownership and other dala oblained Irom
aceountholders or through other means;

Id) trea! all plI as Confidenliallnformation;

1') ensure Ihat all PII erea!ad by Contractor on behalf 01 Service Reeipíent is no!
subject lo unauthorized alteralion or deletion;

ensure Ihat all appropriate lechnieal and organizational measures are laken lo

" proteet PI¡ againsl accidental or unlawful deslruction or accidental loss or
alteralion, or unaulhorized disclosure or access and againsl all olher unlawful
forms 01 proeessing, inciuding meeting or exceeding the requiremenls 01 the
SeIVice Recipient Dala Safeguards;

Ig) comply wilh Ihe provisions of Ihis Agreemen! and Ihe reasonable inslruclions
01 SelViee Recipient to rejum, slore or destroy Ihe PII;

(h) eomply with al! applicable Laws with respeet lo processing of PII and take any
additional s!eps reasonably requesled by Servioe Recipíen! lo comply with any
notification or olher obligations under sueh Laws;

(i) limil access lo and possession 01 PII only lo Ihose Personnel whose
responsibilities under Ihis Agreemenl reasonably reqllire such aceess or
Ihis Clallse 6.5; %
notify SelVice Recipient promptly 01 a breach 01 any 01 Ihe lorgolng ciauses in

EXECUTlON co,,-,,'--____ p~~
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(k) notify Service Recipient prior lo any change thal is macis wilh respee! lo
Contrnctor's organizalional or technical measurss taken lo protect PII Ihal
could affect Ihe controls or standards 01 protection previously specifled or

(1) notify 5ervice Recipienl pronlptly (and in any evenl no taler Ihan five (5) days
alter receipt) of arry communication received from any natural person about
whom data may be processed as part of Ihe Services relating lo Ihe security of
PI! and comply with all reasonable inslruclions of Sarvies Recipient befare
responding lo such communications; and

(m) cause Ihe Personnel lo atterld such training as Servíoe Recipienl may requesl
from lime lo time with respeet to PIl.

6.6 Regulatory lnformation

Conlractor shall promplly provide lo Service Recipien! any information or records 01 Service
Recipien! mainlained by Contractor thal are requesled by any Authority or olherwise required lo
answer any inquiries from any Aulhority.

6.7 Information Security Audll

COrllraelor agrees thal Service Reeipient or Service Recipienl's audilors may ¡rom time-lo-lime
conduet penetration testirlg and Orl-site inspections lo review arld assess Ihe adequaey 01
COrllraetor's information security measures and Contractor shall, al no additiorlal cosí or
expense lo Service Recipient. promptly remedy all deficiencies found as a result 01 such

6.8 Dala Security Breaches

(a) II al any lime COrltraelor determirles thal a Dala Security Breach may have (or
has) oceurred, COrltractor shall immedialely: (i) notily Service Reeipienl 01
such Data Security Breaeh; (ii) irlvesligale such Dala Securíly Breach; {iii}
provide Service Reeipien! access lo all Irlformalion, electronic mail
communications and olher data stored on, or conlained in, any storage
medium urlder Contractor's conlrol to Ihe extenl necessary lo delermine Ihe
existence, and extent, 01 any Data Security Breach; arld (iv) provide
salislactory assurance to Service Recipient thal such Data Seeurily Breach
shall nol reeur_ 1I Service Recipíent coneludes thal there has been a Data
Security Breach, notwithstandirlg Article 19 or anything else lo Ihe conlrary sel
lorth in Ihis ireemenl, Serviee Recipient may disclose any inlormation,
electrorlic mail eommunications and olher data lo Ihird parties, including any
Authority, as Serviee Recipienl deems appropriale without notice to Con!ractor
or any individuals who may have written, sent or received sueh inlormation,
communications or other data

lb) Any decision lo notify a third parly, including an AUlhority, 01 a Data Security
I Breach shall be in SeNiee Recipienl's sole discretion. The liming, conlent and
manner 01 any notice lo be provided by Contractor in connection with a Data
Security Breach shall be approved in actvarlce by Service Recipient, provided
Ih" 'he ooctecte 01 ,"oh di"'""e ,he" be I'm"ed lo 'he' whloh " ~'il1;."

. . . ~
EXECUTION COPY Page 4 of 116
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the Dala Securily Breach and as olherwise required by Law. In addition lo
Service Recipient's other rights ar>d remedies under this Agreemenl, in lhe
event Servíoe Recipient decides lo notify a third party 01 a Data Security
Breach, Contrnctor shall reimburse Serviee Recipienj for nolification casts
incurred by Service Recipient arising out olor in conneotion wilh such Data
Security Breach lo lhe exlsn! caused by a breach of Contrector's obligations
sel forth in this Agreement or ils obligalions as a data processor under
applicable Law, including the reasonable CQsls associated with (1) l10tifying
such Ihird partíes by mail or other means, (ii) providing credi! reporting
services in connection wi!h sueh nolilications and (iii) Service Recipienl's lega!
lees related lo sueh notilications.

7.1 Acknow!edgement and Warranties

(a) The standards, lasks, obligations and other provisions oontained in, or referred
lo, in the Requirements Specilicalion do not purport lo be a comprehensive
stalement 01 Conlractor's obligations underlhis Agreemenl.

(b) Contraetor acknowledges and agrees Ihat, except as expressly se! forth in Ihis
Agreemen!, Service Recipienl has not made and makes no represenlation,
and gives no warranty, in respect 01:

(I) this Agreement;

(ii) any lransaction or arrangemenl contemplated under Ihis Agreemenl;

(iii) any olMer malter retevanl lo Contractor's decision to enter inlo Ihis

(e) Conlractor warranls Ihat il has done, and will be deemed lo have done,
everything which woutd be expected of a teading wortd expert in Ihe design,
oonstruction and commissioning 01 Tolling Syslems, using Bes! Practices and
Ihe mos! modern technotogy and melhodology in:

(1) assessing Ihe risks which il is assuming under Ihis Agreement; and

(ii) accepting and addressing Ihose risks.

(d) Withollt limiting the loregoing, Contraetor warranls Ihal prior lo Ihe date 01 this
Agreement il:

(1) examined the Sites and the;r surroundings and has undertaken
sufficienl due diligenee lo inlorm ilself futly as to site conditions;

\ (ii) examinad, and relied solely upon ¡Is own assessmenl, skill, expertise
and enquiries in respeel 01. alt informalion relevant lo Ihe risks,
contingencias and o!her circumslances having an effect on its
proposal for Iha Services and ils obligations under this Agreemem;riV
,,'1.} -~
EXECUTION COPY _--,',O"~C 48 of 116
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(Ui) satisfied itsel! as lo Ihe correctnes$ and sufficiency 01 its propasal and
lha! il has meda adequate allowance lar the cosls 01 complying with
all the obligations 01 this Agreement and 01 all mallars and lhlngs
neoessary lor the due and proper performarlce and completion 01 lhe

(iv) informad itsel! 01 all matters relevan! lo the employmenl 01 labor snd
employment matters relevan! lo the Sites and the Services; and

(v) was given the opporlunity lo itsel! undertake, and lo reques! olhers lo
undertake, tests, enquiries and investigations:

(A) relating ###BOT_TEXT### Ihe subject matter oflhe Services; and

(8) lar design purposes and otherwise,

and lorlhis purpose was given access lo such parts 01 the Sites as il requirad.

7.2 Indemnlty

Contractor shall dafend. indemnify and hold harmless Serviee Recipierll. and its Associales
from and against any Loss relating lo a Claim arising out olor in any way in connaction with Iha
provision 01, or the actual or purporlad reliance upon, or use 01. any 01 Ihe inlormation described
under Clause 7.1 by Conlractor, a Subcorltractor 01 Conlractor or any other person to whom
such inlormation is disclosed.

8.1 Workplace Health, Safely and Rehabllitation

(a) Contractor shall ansure Ihal in providing tha Services it complies wilh all Laws
and olher requiremenls 01 this agraement lor workplace heallh, safety and
rehabllilation management, and shall keep ServicIO Recipient lully informed 01
all workplace health, salety and rehabililaliorl mattars arising out 01, or in any
way in connaction with Ihe Services as soon as Ihey ocollr.

(b) Conlractor shall be appoinled "Principal Conlractor" lor all work earriad out
and activities undertaken, as well as "Principal Con tractor" during tha lerm 01
Ihe applicable SOVVS, and Conlraclor shall comply with all wriUen directions 01
Service Reclpienl. Contractor acknowledges Ihal Service Recipienl may
revoke such appointment upon nolice.

8.2 Inlerference and Nuisance

(a) In provicing Ihe Services, Contrador shal~

{i} avoid unnecessary:

(A) inlerference with Ihe passage 01 people and vehicies: or

(B) obslruc!ion lo any property; and

EXECUTION COPY page 49 01 1
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(Ii) preven! nuisance including any nuisance caused by unreasonable
noise, dusl, emission, vibration or disturbance.

(b) Contractor shall notify Servics Recipient in writing il il reeeives any complaint,
lener 01 demand or order by anyone (including an Aulhority) in respect 01
Contractor providing Ihe Services.

(e) To Ihe extent ¡hal any part 01 Ihe Tollroad is under traffie, Contractor shall
peñorm Ihe Services (including Ihe rectification of Defeels) in a manner which
complies with Ihe traffie management plan (Ind which minimizes impacl on Ihe
traffie fiow. Contractor shall comply with SeNiee Reoipierrt's directions with
respee! lo Ihe management 01 traffic.

(d) Conlractor shall provide sueh securily measures as are naeessary in
eonneclion wilh ils provision 01 Ihe Services.

8.3 Labor and Employment Mattera

Conlractor shatl, in providing Ihe Servicas:

(a) assume sole responsibitity for and manage alt aspects 01 ¡Is employees and

(b) ensure tha! !he rales of pay and eondilions 01 employment specified in elt
relevanl agreemenls and any applicable labor and employment Laws for elt
employees engaged by Conlraclor and its Subconlractors, are always
observed in lull; and

(e) keep Service Recipíenl fully and promptly informed 01 labor and employmenl
issues which alleel or are likely lo afleet the provision olthe Sef\lices.

8.4 Ut1)ltles


(a) shall conneet all Equipment lo the power eonneclion poinls provided by
Sef\lice Reeipienl (which shall be al such laealion 01 the power conneclion
points exisling as 01 the Effective Date) and any modifications lo Ihe power
connection painls (including Iheir localions) Ihal Contractor requires lo perform
its obligalions under this Agreement shall be Ihe sale respansibility of

(b) shall oblain and pay for any Utilities il needs to perform ils obligalions under
this Agreement olher Ihan power (wIlich shalt be Ihe respansibility 01 Service
Recipien! lo provide);

lo) shalt investigate, prolect, relocate. modify and provide lor alt Equipmenl
necessary lor it lo comply with its obligalions under Ihis Agreemenl;
(d) shall assume Ihe risk 01 the existence, localion, condition and availability 01
Equipment in respeol ollhe Services;
EXECUTlON CO~e>',,-_ _ __ _ _ _ _ _ Pa Q€ 50 of 116
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(e) 8hall contrae! lar, ecquire or othsrwise procure or provide lor the provision 01,
all fuel and other materíals required for lhe performarles 01 ils obligations
under this Agreement; and

(1) shall defend, illdemnify and hoJd harmleBs Service Recipient, and ils
Associates ¡rOm and ageinst any Loss relating lo a Claim arising out alor in
anyway in connection with:

(i) aoy disrlIptiofl lo, or caused by, ally Equipmenl: or

(Ii) a failure by Contractor lo comply with any obligation ullder this
Agreement (including lhe Requiremenls Specification) with raspee! lo

Service Recipient will no! be Ijable under this Agresment or olherwise in relation to any
Equipment lor lhe Tolling System, except as a result 01 ils actions.

8.5 Certificatlon Schedule

COntractor shall provide to Service Reciplent Ihe certificates required by the Certification
Schedule in accordance with the terms olthe CertificaUon Schedule.

8.6 Progressive Remova! 01 Materíals and Make Good

Contractor sha!1 as soon as practicable after completion of any part 01 the Tol~ng Systam
remove all plant, Equipment. machinery. lacilities and vehicles and make good all damage
caused by Contraclor's use and occupalion olthat part 01 a Sita or such other land.

9.1 Access

(a) Subjecl lo this Clause 9.1. Service Recipient shall give or procura tha!
Contractor and ils Subcontractors have access to lhe Sites.

(b) Contractor agrees that it will nol be given exclusive access or possession 01
any Site and may be required to share the Sites with others,

9.2 Cooperation wlth Other Subcontractors

(a) Contrac!or acknowledges that other subcontractors 01 Service Recipiel'lt may
be present while Contractor is peJiorming the Services,

(b) Contractor shall:

(i) cooperate with any other Subcontractors 01 Service Recipient;

(ii) coordinats its work wilh olher Servlce Recipient subcontractors' work
lo minimize any delays. aftar a reasonable notice period provided by
Service Recipient;

EXECUTION COpY _ __ ->~ Page 51 01 116
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(jii) no! unreasonably obstruc!, delay or interfare wilh olhsr Servioa
Recipían! Subcontractors' work;

(Iv) no! damage other Service Recipíen! Subcontractors' work;

(v) comply with all reasonable written directions 1fom Service Recipían!
regarding other Subcontractors of Serviea Recipían! and lheir work;

(vi) promptly provida written notice 01 any delay or likely delay lo the
Services causad or likely lo be causad by other Subcontraclors 01
Service Recipient.

(e) Servies Recipiel'll shall notify Contrador of any other Subconlractors of
Servies Recipient wilh whom Contractor is required lo coordinats.

(d) Conlractor shall notify Service ReGipient immediately if any Subcontractor of
Servioe Recipienl is in defaull under thls Agreemenl and Conlractor shall lake
all reasonable efforts lo mi!igate any impact lo Contractor's obligalions under
this Agreemenl caused by suoh defau!t.

(e) Service Reoipien! shall use reasonable endeavors lo resolve confiicts between
Conlractor and any alher Subcon!ractors 01 Service Recipíen! relaled lo Ihe

9.3 Condillon ofLand

(a) Service Recipíenl makes no representalion and gives no warranly in respee!

(i) Ihe condilion ar stale 01 repair of Ihe land, or any slructure or other
Ihing on, above or adjacenl lo, 01 under Ihe land lhe Conlractor may
need lo aecess in conneetian wilh Ihe Services; or

(ii) Ihe exislence, localion, condition or availabilily 01 any public ulility
services other Ihan lhe exisling power connection sites,

(b) Conlractor accepts Ihe Siles and any slructures or other Ihings on, above or
adjacent lo, or under the suñace of a Site, in its presenl candilion and slate 01
repair and subject to:

ti) all defects, and sub-suñace condiUons, excepl lor the exislence 01
hazardous surtace and subsurface condilions exis!ing as of the
Effective Dale and archaeological lindings tha! an expeTienced
conlractor in Puerto Rico could nal have reasonably uncovered in ils
due diligence; and

(ii) all easements and rights 01 way in favor 01 any Authorily ar olher

EXECUTlON COPY PBge 52 of 116
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9.4 Permitted Use

Gontractor shall nol use or permit the use oflhe Sitas or any part of a Site for any purposa other
Ihan as permitted underlhls Agreemenl.

9.5 Envlronmentallssues

(a) Contrector 8hell, except in accordance with applicable Law unless olherwise
prohibited or limited by any applicable permit, license or aulhorization ar
written agreement with an Authority:

(i) not use sny Site ar allow il, during any periad during which Gontractor
is entitled lo use or occupy ji, 10 be lIsed so that:

(A) any industrial waste ar hazardous substance is handled,
disposed oi, disturbad, discharged or released ar dumped on
any Sita; and

(B) except as aulhorized by any Approval, any olher subslance
is handled, disposed 01, disturbed, discharged, releaeed,
deposlled to, or emanates Irom, a Site such lhat a slele of
eonlaminalion oceure;

(ii) al all times provide, and ensure ¡ha! ils Subcontractors provide, Ihe
Serviees in an environmentally reeponsible manner and so as to
protect the Environment and prevent an environmental hazard; and

(iii) without limiling Conlractor's other obligations under this Agreement,
comply wilh, and provide and lulllll, and ensure thal ils
Subcontractors in providing Ihe Services eomply with, provide and
fulfill, the conditlons and requirements 01 all Law relating to Ihe
Environment lo Ihe extent Ihal Ihey relale lo the Services; and

(Iv) immedialely notily Service Recipienl in writing 01 any breaeh or
polenliat breach or non·compliance or potential non-compliance with
Ihe eonditions or requirements 01 any Law relating lo the ErlVironment
upon discovery 01 any environmenlal hazard in Ihe provision 01 the

(b) Contractor shall defend, Indemnify and hold harmless Serviee Recipient, and
its Associales Irom and aaainst any Loss relating lo a Claim arising out olor in
any way in eonnection wilh a breach by Contraclor 01 lis obligalions under this
Clause 9.5.

9.6 Discovery of Contamination

If Contraclor discovers any contamination in, on or under any Sile (whether or no! Conlractor or
ils Subcontractors have causad or contribuled lo that contamination), Contractor shall
\ immediately notify Serviee Recipienl in writing ¡hereol. Contractor shall nol be liable for any
contaminalion discovered at the Siles which predaled the Effeclive Date 01 this Agreemenl or

EXECUTlON COPY Page 53 of 116
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was otherwise caused by Ihird partias (excluding Contractor Associates), including Sarvice
Recipient ar any Authority_

9.7 Utility Owners

Contracto! shall consult with utility owners and sny alhsr persons having en ¡nteres! (such as a
license, or ¡he benefit 01 en easement) in land ¡ncludad in the Sites, and shall minimiza sny
disruption lo and damages lo all such persons as a resul! 01 lhe undertaking 01 Ihe Servicas.
Any sucio consultation shall be undertaken in accordance with the directions 01 Servica

9.8 Easements

Contractor accepts and acknowledges lhal Servica Recipient mayal any time oreaje any
easements benefiting or burdening lhe Sites:

(a) wilh any 01 the owners, lessees, tenants or occupiers 01 the land adjaoont lo or
in Ihe vieinity 01 Ihe Sites;

(b) with sny publie or olher authority;

(e) and release, vary, modify or give waivers 01 such easements; and

(d) dedícate land 01 which il is Ihe owner ollee simple estate lar road, rail or olher

(a) Serviee Recipient shall, al its awn expense, provide lo Conlractor the items
expressly listed in an SOW as an item to be provided by Serviee Recipient.

(b) Contraetor shall, upon request Irom Serviee Reeipient, supply sueh inlormation
and assistance in respect ollhe Services lo enable Serviee Reeipient to verify
Ihe design or function ofthe Tolling System.

(e) In addition lo and notwithstandil19 this Article 10, Conlractor underlakes to
provide Serviee Recipienl with suffieient inlormelian, at Serviee Recipient's
sole satislaelion lo ensure there will be, lor the purposes 01 inslallation:

(i) adeqtlate Utilities, including supply 01 electricify; and

(ii) appropriate environmental eondilions.

lo) Serviee Reeipient may, by notice in writing lo Contrac!or, suspend all or part of
the Serviees il in ils reesonable diserelion il determines such suspension is
neoossary or convenien!

lb) Provided tha! such susperlsion is nol due to breaeh 01 this Agreement by
COol"do;, if Ih, ","p,,,loo l. "01 11ft" by S'NI" R"IPI'~ gr
EXECUTION COpy ragc 5 of 116


01 such suspension lhe provision 01 the 5ervices is affected andlor lo lhe
extent lhal a Milestone cannot be mel, then Ihe Milestone schedule shall be
extended by the number 01 days equal lo ¡he suspension period and any costs
01 Contractor direcUy resulting from such suspension shall be borne by
Service Recipient.

(e) 1I the suspension lasts more than thirty (30) days, Contractor shall upon
Service Recipienfs request, demobllize ils "team" providing Ihe Services.
After a demobilization, Conlractor shall restart the Services on lhirty (30) days'

(d) 1I the suspension lasts lar more lhan six (6) months ¡he Partíes shall mee! lo
discuss the possíbílity of termínating this N¡reemel1!. Alter sueh meetíl1g,
elther parly may termínate upon written notiee.

(e) tI lhe suspel1sion was ror Serviee Recipienl's conveniel1ee. and no! due lo
breach 01 lhis N¡reement by COl1lractor or required by lhe Aulhority, such
lerminalion shalt be pursuant to Clause 24.4.

(1) If Ihe Authority requíres Service Recipient to suspend Ihls Services, sueh
suspension sha. not I::e considered a suspension for the eonvenience of
Serviee Reeipient and a termination pursuant to ¡his Miele 11 shall nol be
pursuant to Clause 24.4. Notwithslanding sueh termination, the Partias
reserve any rights they may have, if any, against the Authority under
applicabta Law.

(g) Both Parlies shall use all reasonable efforls lo have lhe Serviees recommence
as soon as possible.

Contractor shall tesl the Tolling System in accordanee with Ihe requirements 01 the
Requirements Specífication, the applieable SOW and the Test and Evaluation Master Plan,

Servies Recipient or ¡Is authorized represenlative may observe the Tolling System being
subjeeled to any or all ofthe tests,

13,1 Generally

(a) Contractor shallulilize such personnel as are necessary to enable It to fulfill its
obligalions under this N¡reement, Contractor will ensure thal the personnel
which il utilizes pursuan! lo this Clause 13.1 have the requisite skills and

(b) Contractorwill:
(i) provide or procure the provision of sueh information as can be
lawfully provided and which Is reasonably requested by S~iee(

( (


Recipient conceming the parsannsl (including Subcontractors'
parsannel) il propases lo utiliza lo provide Ihe Services lor ¡he
purposes 01 this Agreement (the "Personnel'');

(ii) provida suilable replacemenl Parsanoel should Service Recipíent,
acting reasonably, deny aocess lo ar raques! removal 01 any

(iíi) ansure lIs Personnel, when al a Site ar when accessing Serviea
Recipíen! facilities and ¡nfarmalian, comply with this Agreemenl and
¡he reasonable requirements and directions 01 Servica Recipient with
regard lo conducl, behavior, safely and security {including atlending a
site induction and submitting lo security checks as required and
complying wilh any obligation imposed on Service Reoipienl by Law};
(iv) comply with all legislative, regulalory and other government
requiremenls lor Itsell including in relalion to workers compensation
and entitlements, the paymenl 01 all tax or pension oonlributions and
laking out and maintaining insurances including complying wilh all
legislative and other requirements, including those' requlred by
Service Recipienl, in respect 01 its Personnel and will provide
doeumentary evidence, satisfaclory to Servioe Recipient, of sueh
compliance as and when requested by Service Recipíen\.

(e) Contractor will, and will cause its Subcontractors to, comply with any collec!ive
bargaining agreement applicable lo any employees 01 Contractor, ils
Subcontrac!ors and Service Recipien\.

(d) In Ihe evenl that Contractor suffers an Evenl 01 Insolvency or ceases lo oarry
on business, Servica Reclpienl shall be entilled lo procure the services 01 any
third party servioe provider. Contractor hereby undertakes Iha! it will take all
such acls and execute all such documente as shall be necessary or desirable
to enable such persons lo acl or rendar their services lo or take up
employment with Service Recipian\.

(e) Contractor shall ensure Ihat each 01 its Personnel engaged in providing the
Services shall if requested by Service Recipient exacule and otherwise comply
with the terms of a "Confidentiality Agraement" substanlially in a Imm specified
by Service Recipien\.

(1) AII Personnel shall possese Ihe training, skills and qualifications agreed upon
by the Parties and otherwise necessary lo properly petiorm the Services.

(g) Belore assigning any individual lo the Personnel, Contractor shall, at a
minimum, conduct, in compliance wilh all applicable Laws, an educational and
prior work experience background check on each such individual. Such
background check shall include verilying each sueh individual's (i)
\ identilication through original documentation, (ii) educational degrees or
diplomas earned through original documentation or confirmation from the . /
applicable educational institutioll, (iii) prior employment history through origin~~1

--~~page 56 of 116
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documentation ar confirmation fram the applicable employer lor the previous
seven years and (iv) criminal background check, including fingerprinling 01
such individual. Contractor shall oblain Ihe Gansent 01 any individual prior lo
periorming the background checks describad in this Clause 13.1. Contractor
shall no! assign any individual lo lhe Personnel and shall promptly notify
Serviea Recipien! 01 any individual (A) whose background check is no!
consisten! wilh Ihe ¡nfarmelian provided by such individual or such individual's
previous employer, (8) who has besn convicted 01, piad guilty ar nolo
contendere lo a crima involving breach oltrust, dishonesty, injury or altempled
Injury lo any property or person, or (C) who reluses to provide consent wilh
respect lo Contractor's or Service Recipient's, as applicable, performance 01
Ihe background ehecks deseribed in Ihis Clause 13,1, Contractor shatl
mainlain a copy 01 sueh background ehecks during the Term and, upon
Service Recipient's request, provide Serviee Reeipient wilh such eopy lar ¡Is

(h) Contractor shalt provide Serviee Recipienl with a list 01 all Persannel providing
Ihe Services and an organization ehart regarding such Personnel (i) eaeh
monlh, (ií) upon any ehange in the Personnet and (iii) as olherwise requested
by Service Recipienl.

(i) Contractor personnet located al Service Reeipient premises may onty provide
services Irom such Service Recipient premises Iha! support SelViee
Recipien!'s operations. Contractor shall notily Serviee Recipienl as soon as
possible after dismissing or reassigning any Personnet.

UJ Conlractor shalt ensure Iha! al! Personnel comply with (i) Ihe eanlidentialily
provlsions 01 Ihis Agreemenl, (ií) Ihe lerms and eonditions 01 this Agreement,
(iii) ¡he provisions 01 lhis Clause 13.1 and (iv) while any member 01 the
Personnel is al any SelViee Recipienl premises, ¡he lacitily's policies, codes 01
eonduct and safety requirements applicable lo such Serviee Reeipient
premises Ihal are made availabte lo such members or Conlractor.

13.2 Appointment 01 Subeonlractors

(a) Contractor shall no! subcontract the whole or par! of the Services without Ihe
prior wrilten cansen! 01 Serviee Reeipient. tI Contraelor wishes lo engage a
Subeontractor for the whole or par! 01 the Serviees, Contractor shall first natify
Service Recipient providing information on the name 01 Ihe proposed
Subcontractor and the portion 01 Ihe Services involved. SelVice Reeipienl
shall have len (10) Business Days lo approve or rejeel sueh Subcanlractor in
ils sole diseretion. 1I Service Recipienl lails to respond within such len (10)
Business Day term, il shall be deemed that Service Recipient has approved
such Subcontractor.

(b) The engagemenl by Con tractor 01 a Subconlraelor lo perform some or all 01
the obligations 01 Contraclor under this Agreemenl will not limil or affact
( Contraclor's obligations or liability under this Agreement. Conlraelor will be
liable lo Serviee Recipienl lor lhe acts and omissions of any Subeontraelor
and their respective Associates in performing Ihe Serviees as il such aels ofnllf
omissions were the aels or omissions 01 Contractor. To the extenl anyV'"

-"-.-=57 of 116
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Subcontractor is providing Ihe Services, or performing any other obligalion 01
Contractor pursuen! lo Ihis Agreement, use 01 lhe lelm "Contractor" shall
include such Subcontractor. The inclusion 01 "Subcontractor" ar
"subcontractor" within the 16rm of "Contractor" daes no! cause any
Subcontractor lo be a party lo Ihis Agreement.

(e) Contractor is responsible lar ensuring Ihe suitability 01 all Suboontractors and
lar ensuring Ihal Ihe work performed by Ihe subconlraclor meets Ihe
requirements ofthis Agreement.

(d) Contractor shall en8ura thal each Subconlractor is aware 01 all Ihe larms 01
lhis Agreement relevan! lo Ihe Subcontractor's part in the performance of this

(e) Contractor shall provide Servies Recipient access to any proposed or
executed eontraet in respect ofthe Serviees with a Subcontractor.

13.3 Key lndlvlduals

(a) Contractor shalf assign the Key Individuals to the Personnel. Key Individuats
shall be dediealed lo performing the Serviees lor the period 01 time and level
of dedieation set forth in the applieable SOW.

(b) Before assigning any Key Individual, whether as an initial assignment or as a
replaeement, Contraetor shall. (i) notily Serviee Recipient of the proposed
assignment; (ii) introduce the individual lo appropriate representativas of
Servies Recipient; (iii) provide Servlee Recipient with a rasume and any other
information available to Contractor regarding the individual lha! may be
requesled by Servies Reeipient; and (iv) obtain Serviee Reeipient's approval
for such assignment. If Sarvies Recipienl does not approve sueh individual,
Contraetor shall as soon as reasonably possible propose a replaesment to
Servioa Reeipienl in aecordance with this Clause 13.3. Contractor shall
provide Serviee Reeipient with an updaled lis! of all Key Individuals al leasl
quarterty after the Effeclive Date and otherwise upon reques! by Servies

(e) Contrac!or shall not raplace or reassígn any Key Individual lor Ihe pariod of
time set forth in Ihe applieable SOW from the date an individual is first
assignect as a Key Individual, unless: (i) the Servioe Raeípient representative
eonsenls to such reassignmenl or replacement; or (ii) suoh Key Individual (A)
volunta¡jly resigns from, or is dismissed by, Contractor. (S) fails to perform his
or her dulíes and responsibili!ies pursuan! to this Agreement or (C) díes, Is
disabled or is placed on long lerm mediealleave. In no event shall Conlraetor
replace mora than one-quarter of the total number 01 Key Individuals in a Site
during any rolling 60-day period during the Term.
(d) Upon noUce from lhe Service Reoipiant representative, Contraotor shall
promptly remove any Personnel member; provided, however, tha! in the event r/
the Sarviee Recipient representative requests removal 01 a PersOfmel membe'tfl '

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ti) because of such individual's tortuous condue!, ¡Ilegal condue! or moral
turpitude or (ii) because Ihe Service Recipían! representativa reasonably
believes such individual's continuing as a member 01 !he Personnel is no! in
Ihe bes! ¡nleres! 01 SSNiee Recipient's business, Contractor shall remove such
individual immediately upon receipl 01 Ihe raques! from Ihe 8ervice Recipían!
representativa. Notwrlhstanding Ihe foregoing, Ssrvice Recipient agrees lha! il
will no! exercise Its discretion lo require Ihe removal 01 any person on Ihe
basis 01 race, color, religion, national origir!, sex, age, disability, sexual
oriemation, or other characterislics proteeted by applicable Law.

(e) Contractor shall as soan as reasonably possible replaee any Personnel
member who is lerminated, resigns or otherwise eeases lo perform the
Services wilh an individual with equal or be!ter qualillcations to pelform the
Services and shall olherwise maintain baekup and replacement proeedures lor
the Personne[ to maintain continuity ollhe Serviees.

(1) Unless olherwise agreed lo by Ihe Partíes, Conlraetor shatl not invoice Serviee
Recipienl lor, and Serviea Recipienl shall have no obligation to pay any
amounls with respect 'to, time lo train any individual appointed lo the
Personnel. including with respee! lo Iraining lor an individual replacing an
individual who was removed Irom Ihe Personnel.

(g) Conlractor shall ensura conlínuity 01 the Personnel and shall use eommereially
reasonable ellorts lo mainlain less lhan a five pareen! (5%) lurnover 01 Ihe
Personne[ in any rolling 12·monlh period during the Term. Should lurnover
exceed live pereenl in any rolling 12-monlh perlad during the Term, Contractor
shall promplly provide Serviee Recipient with a remediation plan in
accordance wilh ils existing retenlion policies lor Service Recipient's review
and approval, and promplly implement such plan, at its cosl and expense, as
approved by Serviee Recipíent.

Conlraclor shall implement a quality syslem lar the management 01 all aspects 01 qualily
assurance in accordanee with the requiremenls 01 lhe Requirements Specification.

14.1 Generally

(a) Conlractor shatl:

(i) plan, eslablish and mainlain a quality system which conforms lo
internatiorml qualily standards and industry practices;

(ii) provide Service Reeipient with acooss lo Ihe Quality Assuranee
System 01 Contractor lo enable monitoring and quality auditing;

(jii) develop a quality assurance plan which eonlorms lo Serviee
Recipient approval in order lo demonstrale the developing qualily 01
Ihe Serviees; and

- - - ---
Page 59 01 116
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(iv) where requested by Sarvies Recipíen!, provida evidence 01 ils
complianee with the Quality Assurance System.

lb) Any such Quality Assurance System shall be used only as en aid lo achieving
compllanes with this Agreement and lo documen! such complianee. Such
system does nol relieve Contractor 01 Ihe responsibility lo comply with lhis

(e) Conlractor shall develap and comply with Ihe Quality Assurance System and
plan in accordance with this Agreement, and lo Servioe Recipient's
satisfeclían, failing which Service Recipían! may suspend the work under this
Agreement un!il such time as Serviea ReGipían! direcls lhe suspension is lo
eease. Conlraelor [S nol relieved of any liability under Ihis Agreemen! as a
resull 01 eomplianee wi!h Ihe Qualily Assuranee System or any aet or omission
01 Service Recipien! in relatlon lo !he Quality Assurance Syslem including
auditing Conlractor's eomptiance wilh Ihe Quality Assurance Syslem.

(d) Conlractor shall provide the certifieales required by Ihe Cerlification SeheOule
wilh respect lo quality.

14.2 Project Quality Non-Conformance

(a) Conlraetor shall comply wilh lhe proeedure lor non-conlormances sel forth in
the Requiremenls Specilicalion.

(b) Corrective actions implemenled under Conlracto~s qualily system shall
comply with Ihe requirements 01 Ihis Agreement

(e) Contraelor shall promptly issue all documents relaling lo qualily
non-conlormances lo Service Recipient.

14,3 Rlghl lo Enter, Inspeel and Tesl

(a) Conlraetor shall permit Servíee Recipient or its designee lo enler any area
where the Services are being carned out during Business Hours or upon
reasonable notiee lor Ihe purposes of:

(i) obseJVing Conlractor's performance 01 SeJVices and moni!oring
complianoe by Conlractor wilh ils obligations under Ihis Agreemenl;

(ii) inspecting or lesting any part of the Tolling System; and

(iii) exercislng any right ~neluding any step-in righl) or performing any
obliga!ion which Service Recipienl has under any SOW.

(b) Conlractor aeknowledges Iha! the powar lo test any part of Ihe Tolling System
ineludes Ihe power lo provide lests on any part 01 the Tolling Syslem whe!her
or no! those tests are olherwise required by this Agreement and whether or
( nol Ihe work the subject of Ihose tesis has been certilied by Servioe Recipien!

as complian! with Ihe requiremenls oflhis Agreemen_t._ _ _ _ _ _ ~Bi,L(lf(,¡.(,,,~

EXECUTlON CON page 60 01 116
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(e) When Serviee Recipíen! 6xercises lhis righ! 01 entry, Servíce Recipian! shall:

(i) observe rules Of requiremenls 01 Contractor, as to safety or securily
on the Gonstruelion Site, which are applied generally by Contractor;

(ji) no! unnecessaflly delay the performance oflfle Services; and

(iii) no! damage the Tolling System in connection with lhe exercise af
purported exercise of righls under this Clause 14.3.

(d) Contractor shall give such assislance as ls reasonably required by Serviea
Recipían! in respee! 01 any inspection Dr testing under this Clause 14.3,

(i) providing access lo such par! 01 the Tolling System and all relevanl
Design Doeumentation as may be requirad by Serviae Recipianl; and

(ii) providing any tests (including lesls no! otherwise required by Ihis
~reemant, provided Ihat SeNiee Recipianl shall reimburse
Contractor lar any reasonable delay eosts directly incurred as a resull
01 those tests) and providing the resulls 01 those tesis to SeNiee

(e) The reasonable GOsls ineurred by Contractor in cormection wilh any inspection
or test eonducled al SeNice Racipient direction undar this Clause 14.3 will be
paid or reimbursad by Service Racipient, unless:

(i) the inspeclion ar tesl reveals any Deleal;

(ii) Iha lesl is in respact 01 work coverad up ar made inaecassible wilhout
Sarvice Reeipient prior approval where such approval was required;

(iii) the tast is upon work underlaken lo correel or overcome a Detact;

(iv) Ihe inspaction ar lesl is required by Besl Practices; or

(v) tha inspeetion or lest was required by Ihis Agreemenl lo be carried
out by Serviee Racipienl,

in which case those oosts will be borne by Serviee Recipianl and any reasonable casts
incurrad by Conlraclor in conneclion wilh those tests will ba payable lo Conlraclor by
Servica Recipienl.

14.4 Certifications

1I the results 01 any inspection or lest damonstrale tha! work whieh has bean eerllfied by
Contraetor or Serviee Racipiant as aomplianl with Ihe requiremenls 01 this Agreemenl, is
aclually not complian!:
(a) Ihe relevant eertificatians will be void; and

EXECUTlON COpy_ _ _ __
____c'' 'aga 61 01 116
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(b) Ihe procese for Ihe issuance 01 lhe relevarlt certlficatiofls will reapply.

15.1 Generally

Notwithstanding any warranties provided by a third party lo Service Recipíen! in respee! 01
individual componenls 01 ¡he Tolling System, Contractor warrants and represents lo Serviee
Recipíen! Ihat:

(a) Contractor has checked and carefully considered Ihe requirements 01 ¡he
Requirements SpeCification;

lb) ¡he Requiremenls Specification is proper, adequate and fit tor lis intended

(e) Contractor has taken into consideration ami made due allowance for al! risks
and oosts associated wilh ¡he provisioll oflhe Services;

(d) the design ofthe Tolling System (including all Design Documentation) will:

(i) be and will remain al all relevanl limes lit lor its intended purposes;
(ii) be completed in accordance with, and satisfy the requirements 01, this

(e) constluction 01 the Tolling System in accordance with the design (including the
Design Documentation) will satisfy the requilements 01 this Agreement;

(1) the Tolb'ng System will:

(i) be completed in accordance with, and satisfy Ihe lequirements 01, Ihis

(ii) upon Tolling Syslem Completion and Close-Out, respectively, be lit
lor its intended purposes: and

(iii) remain at all times lit 101 ils intended purposes;

(g) all componenls 01 the Tolling System will inlerad wilh each other in
accordance with lhe Requiremenls Specification;

(h) il has Ihe aUlhorily to utili¡:e the Third Parly Software and any Development as
requiled by this Agreement;

(i) Ihe Equipment and Ihe System Software and each and every componant
thereof are compatible and will work in combinalion as required by this
Agreemenl and in accordance with Ihe Requirements Specilication;

_____ ce'~gc 62 01 116
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(j) Contractor shall, al all times, peliorm ¡he Services and ils obligations under
this Agreement:

(i) in a proper and professional manner;

(ji) wrlh all due care, skill, judgment and diligenoe;

(iii) using personnel who are suitably qualified lor Ihe performance ollhe
duties allotled them in connection with this Agreement;

(iv) using appropriate materials 01 high quality; and

(v) employing appropriale techniques and standards;

(k) Contractor will conducl a reasonable system testing of Ihe 5ystem Software
prior lo lIs delivery lo Service Recipient in accordance wilh Ihe Requirements
Specification, lo el1surs lha! Service Recipienl receives virus free, stable and
reliable System Software lor installation lesling lo take place;

(1) the Third Party Software is the only additionat software not owned by
COntractor or Service Recipien~ whieh will be Incorporated or used by
Contraclor in the Tolling Syslem;

(m) Contractor will compty with the terms 01 the ticense 01 any Third Parly
Software so there is no restriction on Serviee Reeipient's ability to use Ihe
Tolling System;

(n) Ihe Tolling System will not infringe Ihe Intellectual Property righls 01 any third

(o) there is no legal impedimenl prevenling it Irom lullilling eaeh 01 ils obligalions
under Ihis Agreement, and Conlractor will no! be in breach 01 any Law or
agreemenl by entering into Ihis Agreemenl,

(p) the Design Documenlalion shall be complete, aeeurate and adequale lar
Service Recipienl lo operate and maintain the System Software. For those
purposes, Ihe Design Documentation shall be able lo be underslood and
utilized by a reasonable and independent qualified syslems analysl;

(q) Contractor has available sufficiently qualified slaft lo complete ils obligations
under this Agreemenl;

(r) Con!ractor has capaeily lo entar ¡nto Ihis Agreemenl;

(s) the System Software and Equipment is free Irom any material Defaels;

(t) at the time 01 delivery lo Service Recipient, the System Soltware will be Iree
from any "worm", "virus", "Iock-oul", "self-destruclion", "Trojan Harse" or other
( similar command or instruction (as those lerms are commonly lInderstood in
the computar industry);

_ _ _--'"oagc 63 al 116
( (


(u) Ihe System Software shall perform in accordance with the Requiremel11s

(v) Contractor will provida operation and maintenanoo alld suPport 01 the Tolling
System in accordance with Ihe O&M SOW; and

(w) Contractor will comply wilh all Law, including with respect lo workers
compensation, Ihe payment 01 all applicable tax ar pension contributions and
taking out and maintaining insurances, as appb"cable.

16.1 Service Reclpient's Directlon

(a) Contractof shall C\lrrect all Defects during Ihe Defects Liabiltly Periad and Ihe
term of Ihe applicable SOW.

(b) Contraclor shall as $oon as practicable notify Servíoe Recipienl 01 Defeels 01
whieh il becomes aware,

(e) 1I a breaeh olwarranty gives rise lo a Deleel during Ihe Defeels Uabi~'ly Period
or any supplemenlary Deleels Liability Period to whieh it relales, Ihen Serviee
Reclpienl shall give Conlraelor a notiee idenlilying Ihe Deleet and:

(i) where Ihe Deleel does nol relale lo Ihe System Software, requiring
Contraelor lo eorreel Ihe Peleel, specifying a reasonable time wi!hin
which lo do so; or

(ii) where Ihe Deleel doea relale to Ihe Syslem Software, requiring
Contraetor lo corree! Ihe Deleel under Ihe terma 01 Ihe applicable

{d} Servlee Reeiplenl shall provida COntraetor wilh adequate notice in respee! 01
Ihe Deleet, the nalure 01 the clrcumslancea 01 Ihe oecurrence 01 lhe Deleel
and all olher reasonable diagnoslie inlormalion to identify Ihe Defeel lo

16.2 Correetion 01 Deleet

(a) II a notiee is given under Clause 16,1 prior lo expiration 01. Ihe Defeela Liability
Perlod, Conlractor shall expediliously and diligently progress correction ollhe

(i) wilhin the reasonable lime speeified in Servioe Recipienl's notíee;

(ii) so as lo minimize any adverse effect on the use of Ihe Tollroad,
colleotions 01 Tolls or Interoperability; and
(iii) in a manrler which minimizes any adverse effecl upon Customers. /

Page 64 of 116
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(b) II Contractor can demonstrale after receipt 01 ihe naboe tha! the time specified
in the notice ie unreasortable lhen the time lo correct the Delee! shall be
adjusted lo reflecl the reasonable periad demonstrated as necessary by
(el 1I Contractor raceives a Defeel Notice during the lerm of the applicable SOW,
Contractof shall comply wilh the requirements 01 the applicable SQW wilh
raspad lo the Defac!.

(d) The Defec! correction shall be in compllanee with Ihe Requirements
Specification amI include any correclions lo Ihe Design Docurnenlalion so thal
il ie al all times up lo date.

(e) Contractor shall give notice lo SeTVice Recipient Ihal Ihe Defect has been
eorreeled promptly alter correction ollhe Defeet

(f) Contractor shall al its own expense repair or, il Service ReGipienl considers
necessary, replace Ihe Tolling Syslem or any componenl 01 Ihe Tolling Syslem
wilhin a reasonable time il il is defective or non-conlorming wilh Ihe
Requirements SpeGillcalion or il il is olherwise unsuilable lar the ordinaly use
reasonably contemplated I:F¡ Service Redplent

16,3 Fallure by Ihe Contactor to Comply with Directlon

1I Contraclor does nol compty with its obligalions under Ctause 16.2, Sarviee Reeipien!,
provided Ihal il has given Gonlraclor prior notice 01 ils Intention lo do so, may corree! Ihe Delect
ilsel! or engage olllers (ineludi~ by allowi~ olher providers) to correel lhe Defecl, in which
case, Ihe cosls ineurred by Serviee ReGipienl in so doing will be a debl due and payable by
Contraclor lo Service ReGipient, provided Ihal Service Recipient will use reasonable efforts lo
minimiza sueh oasIs.

16.4 Dispute as 10 Delects

(a) Contractor shall oamply with ¡ts obligalion lo reclily any Delecl under tMis
Article 16 notwithstanding Ihat:

(i) Contraetor disputes Ihe exislence olor extent ollhe Deleet; or

(ii) Contraetor considers Ihal the Deleet arises Irom work performed by

lb) tn Ihe event 01 a dispute deseribed in paragraph (a) then, despite the
existenee 01 Ihe dispute, Serviee Recipient will pay Contractor's reasonable
cosls 01 complying wilh Ihe nolice. On deteJTllinalion or reso[ulion 01 a
dispute, lo the extent il is agreed or delermir<ed Ihat Ihe Defeet arises Irom
Conlraclor's work, then Conlraetor shall repay lo Servies Recipient Ihe amounl
paid by Serviee Recipien! lor the reelilicalion work, such amounl to be agreed
or determined by expert determination under Artiele 32.
EXECUTION COPV _ _ _ _ _ page 6~
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17.1 Service Recipient Payment Obllgalions

(a) Service Recipient shall pay Contractor 1he Fees in respee! 01 Conlraclor's
provision 01 ¡he Services il receives under en SOW_ There shall be no
amounts payable by Servíos Recipient in raspeo! 01 Contractor's provision 01
Ihe Services, other ¡han Ihe Feas under this Agreement.

(b) Contractor acknowledges Ihal Ihe Feas inc[ude Contractor's profits and
overheads end 0111 oasts and expenses Contractor may incur in executing Ihe
Services and ¡Is other obligations underlhis Agreemen!.

17.2 Sel-Off

(a) Service Recipient may sel-off or deduct from any moneys due lo Contractor
under ¡his Agreemen! or othelWise al Law againsl:

(i) any debl or other moneys due from Contractor lo Service Recipient:
(ii) any Claim lo any money which Serviee Recipient may have against
Conlraelm, whether lor damages or olhelWise, to Ihe exlen! Ihe Claim
has been setlled in favor of Service Recipienl pursuan! lo Article 32,

(b) Contrac!or shall make all payments lo Service Recipienl free from any set"off
or counlerclaim and withou! deduction or withholding lor or on account of any
present or future tax, untess Contraclor is eompelled by Law lo make such a
deduction orwithholdi~,

17.3 Final Progress Payment Claim and Final Paymenl Claim

The Fees represen! Ihe lotal cosl lo Service Recipienl and includes all govemmenl levies or
laxes, including cusloms duties and sales lax, Ireighl handling and clearing cosls or export
licenses or any increases Iherein.

17.4 Taxes

(a) Contractor shall colleet and remit any laxes as required by Law. Each Party
shall be responsible lor ils own income laxes and any laxes on ils personal

(b) Eaeh Party represents, warrants and covenanls that il shall file appropriate lax
retums, and pay applicable laxes owed arising from or related lo Ihe provision
ofthe Services in appliesble jurisdictions.

(e) Eaeh Party shall provide and make available lo Ihe olher Parly any applicable
exemption certificates or information requesled by a Party as may be
necessary lor such Parly to comply wilh applicable tax laws. Service
Reeipienl and Conlractor each shall be enlitled lo any tax refunds, credits or
i rebates obtained wilh respeet lo Ihe laxes lor which sueh Parly Is financially
responsible under this Agreement. ~

EXECUTlON COPY Page 66 of 116
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17.5 Invoiees
AII ¡nvoiees submitted by Ihe Contractor shall be deemed final and certiti'ed as correct without
the possibility of review by Ihe Contraclor, once paid in full by Service Recipient.

17.6 Credlts

Service Recipienl reserves the right lo impose upon and deduct from any invoiee, credits due lo
Contractor's lailure lo mee! milesIDnes ar comply wilh performance standards, as Gontained in
this Agreement, including lhe Build SOW and O&M SOw.

17.7 No Contractor Evan! of Default

5eIVice Recipient shall no! be required lo make any payments lo Contraclor during an Evan! of
Default, except for ¡nvoiees subnitted and approved prior lo the occurrence 01 the Event 01
Default, unless Ihe approved invoiee is Ihe basis ollhe Event of Default.

17,8 Wilhholding lo Protect Irom Loss

(a) Serviee Reeipient may wilhhold all or any portian of any payment lo such
extent as may be necessary in Service Recipient's reasonable opinion lo
protect Service Recipienl from 108s due lo (for clarity, Ihe remainlng portion of
Ihe invoice shall be paid):

(i) defective or Incomplete Services by Contractor or any of ils

(ii) claims filed by third parties arising out of Contraclor's performance of
Ihe Services (olher lhan conlractual payments claimed lo be due lo

(iii) failure 01 Contractor lo make undisputed payments when due lo

(iv) damage lo Servies Recipienl caused in whole or in part by any
Contractor or a Subcontractor;

(v) liens or encumbranees flled by a Subeontractor or any olher Person
claiming through a Subconlractor or Conlractor againsl aSile, any
Servies Recipient"prOVided Service localion ar any olher property 01
Servies Recipient; and

(vi) failure by Conlractor lo mainlain the insuranes required by Ihis

(b) When Contractor has remedied Ihe cause for withholding any payment and
has fumished evidence 01 such remedy Ihal Is salisfactory lo Service
Recipient, Conlractor may include, in Ihe next invoice lo be submiUed, a
( request lor paymenl 01 the amounls wilhheld by Service Recipienl.


EXECUTlON COpy_ _ __
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Contractor shall procure lar Service Recipíen! lhe benefit 01 any:

(a) manufacturers' warranties relevan! lo the Equipment;

(b) licensare' warranties in relation lo ¡he Third Party Software; and

(e) other warranties normally provided by suppliers, manufacturers and
Subcontradors with respee! lo lhe Sarvicsa ar Tolling Syslem.

19.1 Gensrally

Each Party agrees tha!: (a) il shall keep and maintain all Confidential Information in sine!
corrfidenc8, using such degree 01 care as is appropriate lo avold unaulhorized use ar disclosure.
bu! in no event les$ than a commercially reasonable degree 01 care; (b) il shall use and disclose
Confidential Inlormation solely lor the purposes for which such inlormation, or aceess lo il, is
provided pursuant to Ihe lelms 01 this Agreement and shall not use or disctose Confidential
Information lor such Party's own purposes or lor the banafit 01 anyone other than the olher
Party; and (e) il shall no!, direelly or indireetly, disclose Confidential Informalion lo anyone
oulside oflhe othar Parly, exeep! wilh Ihe olher Parly's consen\,

19,2, Permitted Dlseloaure

Either parly may disclose relevant aspacts 01 the olher's Confidential Inlormalion lo the general
and limited parlners, officers, directors, employees, professional advisors (including aceounlants
and insurers), eonlractors and olher agenta 01 il lo the ex!en! such disclosure is necessary lar
Ihe curren! or lulure performance 01 Iheir obliga!ions lo sueh Parly; provided, however, tha! Ihe
disclosing Party causes the Confiden!ial Informalion lo be held in confidence by Ihe recipient lo
Ihe same extenl and in the same manner as required under Ihis Agreement. In addition, (a)
eilher party may disclose Confidential Inlormation 01 Ihe other Pally lo the extant required lo
eomply wilh any Law (provided, however, Ihal lo ¡he extent permissible by Law such Parly
providas Ihe olher Parly wllh prior notice 01 any sueh disclosure and works wilh the other party
lo resisl or limil Ihe scopa 01 sUch disclosure and lurthar provided Ihal Ihe dlsclosing Parly limit
any such disclosure lo tha information or reeords required lo satisly the request or inquiry and lo
Iha enti!y (or entitias) lo whom such diselosure is required lo ba made), (b) Serviee Recipient
may diselose Confidential Information lo Aulhorilias having Jurisdiction over Service Reciplent
and (e) SeIViee Recipienl may diselose Confidential Informalion relating to Ihe SeIVices in
conneetion wilh (i) a response by Service Reeipienl lo requesta fur information, proposal or due
diligence, provided any diselosed Confidantial Inlormation 01 Conlractor is subject lo a
confldentialily agreemenl wilh tarms consistenl with those under this Agreemenl, or (ii) as long
as the disclosure does nol attribute Iha information lo Conlractor, a reques! lor mlormalion or
proposal for seIVices lo replace tha Services_

19,3 Exclusions

The restrictions on lisa and diselosure in Ihis Arlide 19 shall not apply lo: (a) Confidenlial
( Inlormalion already known lo a party on a non-confidential basis, as damonslrated by prior
existing records, when il was disclosed by Ihe olher Party; (b) Conlidentiallnlormation lhal is or
beeomes known lo Ihe public Ihrough no fault of a party or ils employees, agants or contraGJf'

. ~bC~
Pnge 68 01 116
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(e) Confidential Information that is received by a Party from a Ihird party where such party is
unaware, after reasonable inquiry, thal such Confidential Information is subjeot lo a
confidentiality or other non"disclosure agreement; and (d) COrlfidentiallnformation devebped I:ry
a Party independently 01 disclosure by or receipt from Ihe other Party.

19.4 Return ofMaterials

Upon a Party's reques! and as directed by such Party, Ihe other Party shall promptly raturo or
erase and deslroy, al Ihe requesting Party's direction, any or all Confidentiallnformation and all
written mataríais thal contain, summarize or describe any Confidential Irllormation in its
possession, excapt to the exterlt the Party irl possession 01 such Confiderltlal Irlformatíon (a)
has 'a license to such materíals under thís Agraement or (b) is required to retain particular
Conlidential Information in order 10 comply wllh Law or such Party's internal record retention

19.5 Unauthorizad Acts

Each Parly shali immediately notify the olher 01 any unaulhorized possession, use or knowledge
01 the othe~s Confidenlial Information, íncludirlg disclosure 01 the olher Party's Confldential
Information lo an unintended recipiant, 01 which such Party is awara.

19.6 Unauthorizad Use, Accass or Dlsclosura

Each Party shall (a) notify the olher Parly immediately upon learning 01 any unlawful or
unauthonzed access, use or disclosure 01 the Confidentiallnformalion olthe olher Party and (h)
to the extent one Parly was responsible for such access, use or disclosure, promptly cure such
aCC8SS, use or disclosure and provide salisfactory assurance to the other Parly that such
accass, use or disclosure shall not recuro

19.7 DISCO and DAVID+ Inlormallan

Contractor shall acknowledge and protect as confidanlial all data that il receives as parl 01
providing ETC Services the information Ihal is providad from ¡he Departmenl 01 Trnnsporlalion
and Public Works from tha DISCO and DAVID+ System. The information ragarding the licanse
plate renewal data and addrasses will only be used for tha limited purpose 01 pursuing payment
for lolls and ¡he violation feas pursuanl to nonpaymenl 01 such tolls. This information provided
from DISCO and DAVID+ is raferred lo as "DMV Information."


20.1 Parent Campany Guarantes

Contractor shall provida, on Ihe Effective Date, a contract 01 guaTantee and indemnily in Ihe
form 01 Annexure C herejo, duly executad by ORG Gila Holdings, LLC pursuant to which the
related corporation undertakas lo guarnntea the Services

20.2 Performance Securily
(,) Within 14 days 01 Ihe Effective Date, Contractor shall lurnish a single
peñormance bond issuad by a surety company authorized to furnish ~

.. ~¡;V
Page 69 of 116
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bonds in Puerto Rico in favor 01 bolh PRHTA and Metropislas (the
millian Dollars
, Ih,
contrary, Servíoe Recipíen! will only ¡ti lo a I 1",
Peliormance Security lar a breach by Contractor 01 lis obligations lhis

(b) Serviee Recipían! wI11 retuf[] lo Contractor the Performance Securily following
¡he expiration 01 lhe Term. Withoul Contractor's consen!, $eTVice Recipían!
may assign any or all 01 ils rights, title and interesl in, lo and undar the
Pertormance 5scurily lo any ¡inencing party (ar similar lhird party) as collateral

21.1 Generallndemnlty

(a) Contractor shall defend, indemnify and hold harmless Serviee Reeipient and
itsAssociates Irom and against any Loss relating to a Claim arising out olor in
any way in connection with any breach by Contracter el arly provisiorl 01 this
Agreemerlt, including any aets or omissions 01 the Contractor arising out 01,
resulting Irom, or incidental to the peñorrnance 01 the Contrae! or olherwise
relaling lo Ihe Contrae! dulías,

(b) COrllractor shall delend, indemnify and hold harmtess Servioe Recipien! and
Its Associatas Irom and againet any Loss relating lo a Claim arising out olor in
any way in eonnection with:

(i) damage lo, loss or deslruction 01, or loss 01 use 01 (whelher lolal or
partial), any real or personal property (ineluding property belonging to
Serviea Recipient);

(ii) any injury lo, disease or daalh 01, persons, irlcluding personal injury,
sickness, emotional dislress, disease;

(iii) economic loss suffered by third parties as determined by a court 01

(Iv) any discharge, emission, spill, ralease or Ihreataned release, disposal
(or arranging lor ¡ha disposal), distribution, manulacture, processing,
storage, treatment, transport or other use 01 hazardous substances
no! in accordance with Law;

the violation by Contraclor or any Associate 01 Contractor 01 eny
applicable Law, including: (x) eny Ihaft 01 funds or lailme 01 Ihe funds
deposited in the Serviee Reclpient's accounl lo equel the amount
( posted or eollecled lor Iha relavant period; (y) violatiens by Iha
Conlractef 01 permits, approvals, restrictions, agreements or olher
requiremants identified in !ha Contrae!; (z) any failllre by I~

EXECUTION COPY ----cpage&~
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Contractor lo pay any Puerto Rico or Federal laxes based upon gross
receipts, purchsses, rentals or sales, lhe use of any property, for
unemployrnent insurance, disability coverage, old age insurance ar
any other social security ar social bel1sfit laxes applicable lo all
employees 01 lhe Contractor ar ils Associates af any olher laxes
imposed in connection wilh Ihe Contrae! dulías;

(vi) Contractor's obligation lo pay COlltractor's laxes;

{vii} all Encumbrancas, claims or similar encumbranoos arising in
col1llection with Ihe Services;

(viii) any inlerference wilh Service Recipient's ongolng operatiol1 01 arty

(Ix) any claim by any Associates 01 Contractor and their respective
Associates, and

(x) faiture 01 the ETCS lo post transactions or post transactlons in a
timely manner in accordance wilh the Conlract,

caused by, arising oul 01, or in any way in eonnection with, the Services,

(e) Contractor shall defend, indemnily and hotd harmless (a) PRHTA and ils
Associates from and against any Loss relaling lo a Claim arising directly or
indirectly in eonnection with, relaling lo or arising out 01 a Claim by Contractor
or ils Associates against Metropislas or ils Associales in connection with this
Agreement and (b) Melropistas and íts Associates and shareholders from and
against any Loss relatlng lo a Claim arising directly or indirectly in conneclion
wilh, relating to or arising out 01 a Claim by Contractor or its Associales
against PRHTA or its Associales in connection with this Agreement.

(d) Intelleetual Property Indemnilication by Conlractor.

(i) Contraclor shall detend, indemnify and hold harmless Service
Recipient and ils Associates Irom and againsl any and aH los$,
damage, expense, cost, claim, demand, cause 01 action, debt or
liability, including reasonable attorneys' and expert lees and costs
paid in seltlement:

(A) arising out 01, or relating to, any claim lor inlringement 01 any
patent, copyright, trademark, trade secret or other third party
proprietary right arising as a result 01 the operation 01 Ihe
ETCS or the use 01 any item 01 Equipment, including the
Syslem Software, by Ihe Service Recipient, the Contractor or
any 01 its Subconlractors, or any agent or affiliale 01 any 01
them; or
(B) arising out 01", or relaling lo, (xl any breach 01 Ihe warranties
set Clause 6,1, (y) any other material or ítem provided by vi
Contractor lo Service Recipient in connection with t~

. '(3J>L: /-'
EXECUTION COPY page 71 of 11~
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Agreemenl ami (z) the use or enjoyment 01 any Deliverable
provided by Contractor lo Servies Recipient or as modified
by Contractor (bul no! by Service Reciplsnt).

(ii) Withoul limiting the generality 01 lhe fOJ"e9oing or limiting any other
remedies 01 jhe Service Recipient, il the ETCS or any ítem of
Equipmenl or System Software or any componen! ¡hereo! is held lo
constiMe en jnfringement or ils use is or may be enjoined, Ihe
Contractor shall, al lhe oplion of Ihe Contraclar, (A) replace or modify,
or require lha! Ihe applicable subcontractor, consultan!, agent or
supplier replace or modify, the allegad infringing portian 01 the ETeS,
ítem of Equipment or System Software, al lhe Conlraclor's sale
expense, wilhoul malerially impairing Ihe functionality or performance
01 the ETCS, or (B) procure for the Service Recipienl, al no addilional
cosl lo lhe Service Recipienl, Ihe rights necessary lo use the
infringing portion 01 (he ETCS, ~em 01 Equipmenl or System

(iii) The indemnification provided in Clause 21.1(d}(i) and remedy
provided in Clause 21.1(d}(ii) shall nol extend lo any alleged
infringemenl or violation lo Ihe extent that 11: (A) is based upon the
Service Recipient's use of equipmenl or software in connee!ion with
Ihe ETCS other than lhe Equipment or Syslem Software, (B) results
from Ihe Service Recipienl's use of the ETCS or any componenl
Ihel<!of olher Ihan as provided In this Agreement, (C) relates lo use of
Equipmenl or System Software in combinalion with olher equipment
or software, furnished either by Ihe Service Recipienl or by others,
which combinalion is nol consislenl wilh Ihis Agreemenl, il such ctaim
would have been avolded but for such combined use, or (D) arises
lrom any action or mocliflcation by Contractor with respect lo any pr~
exisling syslem upon which Conlractor is obligated lo work wilh in
connection hel<!wilh.

21.2 Damages Cap

The liebilily of either Party lo the other lar any Loss arising out olor relaling lo ils
performance or fallure to perform its obligations under Ihis Agreemenl, whelher based
on an action or claim in contract, equity, negtigence, lor! or olherwise, lor any event,
acl or omission occurring during Ihe Term shatl not exceed, in the agareaate, an
amount equel lo:

(a) with respee! to Ihe Build SOW, US $8,000,000.00; and

(b) with respee! lo ¡he O&M SOW. durina the O&M SOW Term, US $8,000,000.00
per calendar year,

(each a "Damages Cap").
21.3 Exclusions

Too Damages Cap shatl nol apply in Ihe case of:

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(a) any Losses suffered by Setvice Recipient resulting Irom the abandonmenl 01
any obligation under Ihis Agreement (in whole or in part) by Contractor;

(b) any Losses resulting Irom Ihe gross negligence, willful misconducl or ¡¡aud 01

(e) any Losses suffered by Serviee Recipían! resulting from Ihe breach 01 Articles
5 or 6 ofthis Agreement;

(d) damage lo, 105$ or destruclion 01, or 10$$ 01 use 01 (whelher total or partíal),
any real or personal proparty (including property belonging lo Service

(e) erty Losses resulting ¡mm a breach 01 Article 19;

(I) arly LOBses suffered arising in connection with Ihe inctemnificallon provided In
Clause 5.1 (e) {Tolling Syslem}, Clause 9.5(b} (Environmenlal issues), Clause
21.1 (b) (General Indemnity), Clause 21.1(d} (Indemniliea) or Clause 33.1 (e)
(Comply with all Laws);

(g) al1y Clalms broughl by a ¡hird party agains! Service Reeipienl lor whieh
Serviee ReGipíen! ia enlilled to indemnification under Ihis Agreement (including
under Clause 23.2 (Damage lo third party property}); or

(h) the obligalion lo pay undiaputed Fees or eredits (including Milestone Credits).

21.4 Caleulallon of Losses; Full Recovery and No Duplicat!on

(a) The amount 01 any and all Losses under this Article 21 shall be delermined net
01 any insurance recoveries payable lo Ihe affected party in connection with
the lacts giving rise to the righl 01 indemnifieation. The Parlies agree Ihat any
Party seeking ¡nsurance reeovery shall seek full recovery under all insurance
policíes covering any Loss without being realneted by the Damages Cap.

(b) Servíce Recipient's ríght lo obtain Milestona Credíts undar the Build
SOW shall not limil Service right to reeovar other Losses incurred
by sueh failllre or to termínate the Bulld SOW;
I Recipient collecls other damagas from
lailure, Ihe amount 01 sueh other damages shall
be redueed by the amount 01 Mileslone Credits paid lo Serviee Reeipient for
such lailure, such that Sarvice Recipianl does not recover twice lor the same

(e) Servíce Recipiant's right lo obtaín performance credits under the O&M
SOW shall nol limil Service Reeipient's righl lo recover other Losses incurred
by Servíce Reeipient as a result 01 such lailure or lo lerminale Ihe O&M SOW;
( provided, however, that jI Sarviee Recipienl eolleets other damafles Imm
Contractor as a rasult 01 sueh lailure, the amount 01 such other damages shall
be reduced by the amount of performance credils paid lo Serviee ReciPíent~

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SLlch failure, such Iha! Service Recipient does no! recover twice lor the sama
(d) In no event shall 5ervice Recipient be entitled lo recovar any Losses lindar
one Clause or provision 01 this Agreement lo the extent of the full amollnl 01
slIch Losses already recovered by Service Recipienl, nor shall lis insurer or
indemnitor be entitled lo any kind 01 sLlbrogation or substiMíon, which would
give il the right lo make a claim againsl Contractor.

21.6 Indemnification by Contractor

To lhe lulles! exten¡ permitted by Law, Ihe indemnilications by Gontractor shall include, in
addition lo each SaNiee Recipient and lis Associates, the Commonwealth 01 Puerto Rico, Ihe
Department 01 Transportation and Public Works and each 01 lheir respective aulhorities,
departmenls and polilical subdivisions and lheir respective officials, employees, agenls,
attorneys, directors and representativas, and its or Iheir respective consultants (collectively, the
"Indemnitees"), For clarity, Losses shall include all expenses incurrad by Ihe Indemnilees in the
negotiation, dalense, settlemenl or salislaction 01 any claims or proceedings broughl thereon,
regardless 01 Ihe validity Ihereol, including attorneys' lees and expenses.

21.6 Nollce 01 Claims

Whenever claim shall arise lor Indemnification hereunder with respec! lo a claim by or
11;"::i:';:;~"~~:~:::~;; ,~::,~,:: asserted lo be owed lo a third party, Ihe Indemnitee shall promplly
~' Ihe claim and, whan known, Ihe lacts constituling lhe basis lor such claim;
. Ihal no delay on Ihe parl 01 Ihe Indemnitee in nolitying Contractor shall
Ii Irom any Ilability or obliga«on /lereunder except to Ihe extent 01 any damage
or liability caused by such lailure. In Ihe evenl 01 any such olaim lor indemnilioation hereunder
resulting Irom or in oonnection with any claim or legal proeeedings by a third party, the notice lo
Contractor shall speoily, il known, Ihe amount or an estimale ollhe amounl 01 the liability arising
Iherelrom. The Indemnilee shall not settle or compro mise any claim by a third party lor which il
is saeking indemnification hereunder wilhout Ihe prior written consenl 01 Conlractor (which shall
not ba unreasonably withheld or delayed), unless Contractor shall no! have laken control ollhe
defense 01 such claim as proV1ded in Clause 21.7, alter notifiealion Ihereo! pursuanl lo this
Clause 21.6, in which case the Indemnilee may seltle or eompromise such claim withoul
Contrac!or's consen!.

21.7 Delense 01 Clalms

In connection with any claim lor indemnificalion hereunder resulting lrom or arising oul 01 any
claim or legal proceeding by a third parly, Conlractor al i!s sole cost and expense may, upon
written notice to the Indemnitee given within !wenly (20) days alter !he date 01 Ihe notice ollhe
claim Irom the Indemnitee pursuant to Clause 21.6, assume Ihe defense 01 such claim or legal
proceeding with counsel approved by the Indemnitee, which approval shall no! ba unreasonably
withheld or delayed, il (1) Contractor acknowledges lo Ihe Indemnitee in wriling Contrac!or's
obligalions to indemnify Ihe Indemnitee with respee! lo all elemellts 01 such claim, (ii) the Ihird
party seeks monetary damages only, and (iii) an adverse resolu!ion Ihe third party's claim would
( not hava a material adverse effect on Ihe goodwill or lhe reputation 01 Ihe Indemnitee or the
Serviee Recipienl or the future conduct 01 Ihe business 01 Ihe Indemnitee or Iha Service
Reclpienl II Conlractor assumes sueh delellse, Ihe Indemnltee shall be enhlled to particlpale ~

EXECUTlON COPY Paga 74 o~~
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(bu! not control) such defensa, wilh its caunsal and al its own expense. In addition, if Contraclor
so assumes slIch defensa, il shall lake all steps necessary in ¡he defense or settlement Ihereaf;
provided, however, Iha! Contractor shall no! cansen! lo any settlement or lo lhe entry 01 any
judgmenl with respad lo a claim or legal proceeding which does no! Includa a complete ralease
01 Ihe Service Recipiellt and any Indemnitea fmm all liability wilh raspee! (hareta or which
impasas any liabilily on Ihe Service Recipient or any Indemnitee without Ihe written consant 01
Ihe Service Recipient and any Indemnilee. 1I Contractor does no! (ar is no! permilted under the
terms hereol lo) assume the defense 01 any such elaim or legal proceeding, (A) Ihe Indemnitee
may delend against such claim or legal proceeding (wilh Contraelor responsible lor Ihe
reasonable lees and expenses 01 eounsel lor Ihe Indemnilee) in such manner as it may deem
appropriate, including setlling such claim or legal proceeding on sueh lerms as the Indemnitee
reasonably and in good failh may deem appropriale, and (8) Contractor shall be entitled lo
participate in (bul not control) the defense 01 such action, with ils counsel and at ils own

21.6 Third Party Beneficiaries
The provisions 01 this Article 21 shall be lor the benelil 01 each Indemnilee with the same lorce
and eflecl as il each individual Indemnitee were in privity 01 contrae! wilh Ihe Contraelor. and
each Indemnilee shali have Ihe right lo bring a direct aelion agains! Ihe Conlraelor lo enlorce
this indemnity. Each Indemnllee is hereby mOlde a third party beneficiary 01 too Contrae! with
respee! to Ihe provisions of thisArticle 21.

21.9 No Limitatlon
(a) No Limitations Implied by Law: The Indemnifiealion obligalion under this
Article 21 shall nol be limited in any raspee! by legal limitalions on the
amounts or types 01 damages. compensation or benelils payable by, or on
behall 01, the Conlraclor (or lis Associales) under workers' compensalion,
disability benefil. employee benelit or olher social benefi! laws or insurance.

(b) Olher Remedies and Insurance No Limitalion: The indemnifiaalion obligations
sel lorth in this Artiale 21 shall nol be conslrued lo negate, abridge or in any
way diminish any olher obligation 01 indemnity running lo the Indemnilees or
any olher racourse ¡hal would otherwise existo The maintenance 01 insurance
by the Conlrae!or in accordance wilh Ihe Contract shall not limil, waive or
affeel in any raspect Ihe indemnificalion obligalions 01 Ihe Contraclor sel forth
in this Artiale 21.

21.1 OJoin! and Several Llabllity

The Contractor's liability shall be joinl and several wilh that 01 any Associale or any 01 ils or their
respective employees.


In no even! shall Service Recipient be liable lo the Con!raelor except lar obligations expressly
i assumed by !he Servíce Recipienl under the Contrae!, nor shall the Service Recipien! ever be
liable to the Con!ractor lor indirecto special, incidental or consequenlial damages resulting lrom,
arising out 01. or in connection wilh the Services, the Contract or ils terminalion in whole o~ i~"/
part Uy
EXECUTION COPY -C,C'-"-:7S of 116
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21.12Non-Liablllty of Service Reclpient Representatlves

No representativa 01 Ihe Service Recipien! nor any officer, agenl, consultan! or employee
Ihereo! shall be charged personally by the Contractor with any liability or held Ijable lo il undar
any term or provision 01 the Contraet, or beca use 01 its execution or attempted execution 01 the
Contrae!, or becallse 01 any breach ofthe Contrae!.

Contractor shall carry and mainlain in force insurance policies lar ¡he Services. Contractor is
responsible lar insurance policies 01 ¡he types, and in lhe amounts 01 mínimum coverage, as

22.1 Workers Compensation

Regardless 01 the number 01 employees, Contractor shall provide and maintain Workers
Compensation insurance covering Contractor and all workers. Such insurance shall provide all
statutory benefits required by the state in which operations is located andlor any other
governmental or legal aulhority having jurisdie!ion, and include Employers Liability with limits 01:
$1,000,000 each accldent, $1,000,000 Disease Policy Limit, $1,000,000 each employaa.

22,2 Employer's Llability lnsuranca

Contractor shall provide and maintain Employer's liability insurance wlth minimum limits 01 One
Hundred Thousand Dollars ($100,OOO) lor bodily injury by accident or disease, including death,
arising out 01 and in Ihe course 01 employmenl, other than and distinct from any claim under Ihe
22,3 Employee Dlsability Insurance

Contraetor shall provide and mainlain Employee disability insurance in complianee wilh Ihe
Disability Senelils Act 01 June 26, 1968, as amended,

22,4 Chauffeur Social Securlty Insurance

Contractor shall provide and meinlain Chauffeur Social SeOJrity insurance covering drivers 01
motor vehicles engaged in the performance 01 the Work, in accordance with 29 LP.RA § 68 1,
et seq,

22,5 Llability Insurance

Contractor shall provide and maintain Liabillty insurance broad lorm and covering all services lo
be peñormed under Ihis Contrae! wilh limits not less than the amounts specilied below, Such
insurance shall inolude al leas! the following:

(a) Commeroial General Liabilily: a Commeroial General Liability policy on all
occurrellce basad lorm with Ihe following minimum program limils and
(i) Limits:

EXECUTION CO,O,''--_ _ ___
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(A) $1,000,000 Par occurrence
(S) $1,000,000 Personal arld Advertising Injury
(e) $100,000 Fire Damage
(O) $50,000 Medica! Expense per person
(E) $2,000,000 General Aggregate
(F) $1,000,000 Proctucts/Completed Operations per occurrence

(ii) Coverage shall include:

(A) Contractual Liability insuring Ihe obligations assumed by
Conlractor urlder the contrae!;
(B) Explosion, Collapse and Underground;
(e) Aggregale limil par location;
(O) Additional insured on all poli cíes including all Primary Liability
Olnd Excess/Umbrella as may be provided. Service Recipient
and all of ¡he affiliates, parents, subsidiaries, officials,
directors, employees, suecessors, assigns, representatives
and volunteers 01 each of them, shall be named as Additional
Insured on all Contractor policies including Operations and
Products Completed Operalions; and
{E} No policy shall contain exe~sions or have gaps in coverage
that restríct or limil its ability to respondo

(b) Commercial Automobile Liability: a Commercial Automobile Liabilily poliey
ineluding coverage lor bodily injury and property damaga arising from Owned,
Hirad and Non-owned vehieles oparated on or off {Service Reeipient}
premises wllh limits 01: $1,000,000 Combined Single Limit.

(e) Professional Liability: a Proressional Liability policy wilh a mínimum limil of
$1,000,000 per claim and $1,000,000 par aggregate eovering elaims arising
oul of the peTformance of professional services under the control or
managemenl of Contractor and caused by errors, omissions, or negligenl acts
lor which Contractor is liable. Such insurance shall be maintained in force by
Contraclor for the period 01 the contrae!.

(d) Pollution Liat:ility: a Pollution Liability policy with a mínimum limil of $1,000,000
aggregate eovering claims arising out 01 the release, diseharge or use of
pollutants or hazardous materíals for whieh the Contractor is liable. Sueh
insuranee shall be maintained in force by Conlraclor for the period of the

(e) Direclors and Offieers: a Direclors and Offieers policy wilh a minimum limil 01
$1,000,000 par claim and $1,000,000 per aggregate eovering claims arising
out of the wrongful aels 01 the direclors and offieers 01 the Contractor and
eaused by errors, omissions, or negligenl aets for whieh Contractor is liable.
Sueh insuranee shall ba maintained in force by Contraelor lor the period 01 the
(f) UmbrellalExcess policy: Policy with a minimum limil of $5,000,000.
-----c~S2JL Page 77 of 116
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(g) Business Inlerruption: Business Inlerruption coverage wllh a limil 01 no! less
¡han ona month 01 revenues lo cavar Ihe 108$ 01 revenue arising 01 an inciden!
which causes interruption lo normal services. Also an extra expense coverage
lor additional expenses lhal may arise lo reinstale Ihe services (perlad 01 time
required in contract).

(h) Olher Insurance: Contractor shall maintain separata insurarlC6, be responsible
for, and waives and misases claims against SeNiee Recipienl relaling lo 10$$
or damage lo rented, Isased or awned equipment, temporary facilities, or alher
personal property 01 Ihe Contractor or any oflheir employees.

22.6 Duration

Conlraclor shall oblain and maintain alllnsurance required by thlS Agreemant during !he Term.

22.7 General Requlrements


(a) Must be issued by insurer(s) au!horized lo write business in Ihe
Commonweallh 01 Puerto Rico by Ihe Offlce 01 Ihe Commissioner 01
Insurance. In addi!ion, it mus! haya an A.M. Bes! classilication 01 nolless than
A- (Excellent) and FSC (Financial Size Calegory) VI. Insurar{s) shall have a
claims office in Puerto Rico;

(b) shall be 011 ¡he lerms raquired by thls Artiele 22 or olherwise as approved by
Servica Recipienl;

(e) shall nol contain any exclusion, endorsemenl or alteralion, unless il is firs!
approved in wriling by Service Recipien!, excepl exclusions Ihal are standard
in Ihe relevant induslry;

(d) shall have Service Recipienl as addilional insured's, as their inleres! may
appear, axcept lar Ihe prolessional indemnity insurance, the employers' and
workers' compensation insurance policies and Ihe motor vehiele insurance
covering third party dealh and injury lo persons;

(e) which nama more Ihan one insurad shall inelude a waiver and cross liabilily
elause in which Ihe ¡nsurer agrees:

(i) to waive all righls 01 subrogation or aelíon Ihal JI may haya or acquire
againsl all or any 01 ¡he persons eomprising the ¡nsurad; and

(ií) tha! Ihe term "insured" applies lo eaeh 01 the persons comprising Ihe
insurad as if a saparate poliey of insurance had been jssuad lo eaeh
01 Ihem (subject always to Ihe overall sum insured nol being
increased as a result): and

I lO Iha! any non-disclosure, breaeh 01 any duty or ael or omission by one insured
does nol prejudice the right 01 any othar insured lo claim undar any insura~r

"-'-'-'-'-"-'-'-0-"--- - page ~~
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22.8 Evldence

Contractor shall provide evidence 01 all coverage required by Service Recipient. Required
endorsements shall be attached lo a Certificate(s) and all policles shall be endorsed lo provide
no less ¡han sixly (60) daya' prior written natice lo Ihe oertificate holder 01 cancellation ar

22.9 Generallnsurance Obligations

Contractor shall:

(a) no! do or permit, ar ami! lo do, al'\ything which prejudices any insurarlce;

(b) rectify anylhing which might, il no! reclified, prejudice any insurance;

(e) reinstale an insurance il il tapses;

(d) no! cancel, vary ar allow any ¡Ilauranee lo lapse wilhout Ihe prior wrillen
consent of Service Recipient;

(,) immedialely notify Service Recipient of any lac! or circumslance or change in
eireumslances which may prejudice an insurance;

lully and promplly disciose all malerial inlormation lo all relevanl insurers (and
any persons acting on lheir behalf) relating to Ihe Insurances (whether held
solely or jointly with others) in all respects, including where failure lo do so
would violale or invalidale the relevanl policy;

(g) comply al alJlimes wilh Ihe lerms 01 each insurance;

(h) Wilh regards lo subcontracting lo others, require and secure similar insurance
limits and coverB.!,]e Irom ils subconlractors; and

(i) Wilh regards to deductibles and self-insured retentions, be responsible far
payrnent al all deduclioles applicaole lo operator Insurance eoverage.

22.10Notiees of Potenllal Claims

In additioll lo the obligations lo notify the insurer ullder any insurance palicy. Contraelor shall:

(a) other Ihan where Service Recipienl or ils respective Assaeiates are brillging
Ihe elaim. notify Service Recipienl of any occurrence Iha! may give rise lo a
claim under any insurance;

(o) other Ihall where Service Recipient or ils respective Assaeia!es are bringing
Ihe claim. keep Serviee Reelpient informed of sLlosequent developments
concerning lhe claim:

( (e) diligenlly pursue ally elaim whieh il has under any insurallee; and

( (


(d) no! compromisa, settle, prosecute or enlorce a claim under any insurance
without lhe prior written consen! 01 Service Recipíen!.

22.11 Walver 01 Subrogatlon

(a) Pnmary arld non-contributory: Contractor stipulales and shall provide written
conflrmation from ¡ts inslIrers ¡ha! ¡he insurance described aboye is primary
and non-contributory.

(b) Non-waiver: aH documentatiort required herein shall be provided in a limely
manner. However, failure lo provide lhe required documenlation shall no! be
construed as a waiver 01 any insurance requirements provided abov8.

(e) II Contractor submits any documentation Iha! does no! conform lo tha
Insurance requiraments harein províded, the acceplance or relention of Iha
non-conforming documenlation by Servíce Recipienl shall not operale as an
es!oppa! or waiver 01 Ihe insurance requirements specified by Sarvice

23.1 Damage to Totting System

The Service9 include Conlraclor's obligalion lo maintain lhe Tolling Syslem in accordance with
Ihe O&M SOW unlillha and 01 this Agreamenl, excepl lo the extenl ¡hare Is any loss or damage
lo Ihe Tolling System caused by Servíce Recipienl, ¡Is Subcontraclors, third parties al Force
Majeure, in which case such IOS9 or damage shall be al Service Recipienl's cosl.

23.2 Damage lo Third party Properly

Where any loss of or damage lo real or personal property of Ihird parties occurs which arises
out 01, or in connection wilh:

(a) any failure by Contractor to comply wilh ils obligations under this Agreement,
Contractor shall, al ils cost, promptly repair any such loss or damage; and

(b) the Servic8s, Contractor shall, al its own cost, where Contractor has a legal
liabilily lo do so, promptly repair such loss or damage, or il Ihe affected person
¡¡graes, reasonably compensate Iha affecled parson for that loss or damage_

1I Contractor fails to provide any repair work or to pay reasonabla compansation under this
Clause 23.2, Service Recipíanl may provida such work or pay any 9uch raasonable
compansalion and any Loss incurred by Service Recipienl will be a debl due and payable Irom
Conlractor to Sarvice Recipient.

, 24.1 Term
Inlllal Term: The initial lerm 01 the Conlract shall commence on the Effectíva
Date and conlinua lar four yaars Irom the date on which O&M:J!.J"

, , 1'o~c,¿
EXECUTlON COPY _-----;;;'1'
__ """9 ·'80 of 116-
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commence in eccordance with Section 2.4 01 the O&M SOW {Ihe "Initial Term"
and, together with any rerlewals, Ihe "l!llin"}. The tnllial Term rnay be
extended pursuant lo Subsection 24 1(b) below.

(b) Oplional Two and Additional Two Year Term: The Servíce Recipíen! shall
have Ihe opllan lo extend Ihe Terrn for two (2) additional two (2)-year periods
on Ihe ¡erms and conditions 01 Ihe Contrae!, by giving Ihe Contrnctor written
notice (Ihe "Extension Notioe") oflhe Service Recipient's eleclían lo extend Ihe
Contrae! no! rater Ihan six (6) months prior lo Ihe end of Ihe tnilial Term or Ihe
first Oplional Two-Year Term, whichever il rnay be. Any such extension of Ihe
Term shall take elfect upon Ihe giving 01 the Extension Notice without Iha
nacessily 01 axecuting any furthar instrumenl.

24.2 Tarminatlon by Serviea Raciplent lor Conlractor Breaeh

(a) II an Event 01 Default oecurs, Ihen Serviea Raeipianl may give writtan notice
requiring Conlraetor 10 remedy the Event 01 Delault wilhin:

(i) ona day il il is an Event 01 Delaull whareby (a) Contractor abandons
or displays any intantion to abandon any 01 the Sarviees, (b) an Evant
01 Insolvency oecurs in ralation lo Contraetor or (e) an Event 01
Insolvaney oeeurs in relaUon 10 any guarantor 01 Contraetor;

(ii) five (5) Business Days il relalad lo a faiture to aehieve a Mileslone
Date; and

(iii) in all other cases, thirty (30) days.

(b) II notice is given 10 Contractor pursuanl lo Clause 24.2(a), Conlraetor shall
comply with thal notice and give a program lo remedy the Event 01 Delault
idenlified in Service Recipient's notice. Contractor shall implement and eomply
with the programo

(e) II an Event 01 Default is nol remedied within Ihe lime specifled in Clause
24.2(a) or al any lime Contractor is not diligently pUlsuing the remedialion 01
an Event 01 Delault then Service Recipient may terminate this Agreement
upon noUca to Conlractor.

(d) Upon termination 01 this Agleement under Ihis Clause 24.2, Serviee Recipient
shall nol be liable to pay any oompensation or olher amounts whatsoever lo
Contractor by reasan 01 thal lermination. including any money claimed by
Contractor or certilied lor paymenl by Servica Recipienl, subject lo resolulion
01 any disputes arising in connec!ion with such termination.

(e) II Contraclor commits an Evenl 01 Delault, Service Recipient may, in addition
lo terminaling Ihe Contraet under this Clause 24.2:

(i) take over and use, or require Conlractor to remove Irom the sile, Ihe
plant, equipment and work and all materials, equipment and othel
Ihings intendad lar Ihe Tolling System;
Page 81 of 116
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(ji) require Contractor lo assign lo Service Recipíen! or Service
Recipient's designes, any or all subcontracts between Contractor and
¡ls Subconlractors as required by Service ReGipían!, provided,
however, lha! Contractor may retain a subconlracl with such
Subcontractors lo the axten! necessary lo continue lo provide
Services under this Agreement lo lhe other SeNice Recipían! and as
necessary lo mee! ils obligalions upon a terrnination or expiration with
respect lo such other Service Recipient as required under Ihis Clause
24.2{e){m; and

(iii) recaver from Contractor any costs, losses or damages incurred or
suffered by il as a result 01, or arising oul 01, or in any way in
connection with, Buch lermination.

(f) Contractor shall immediately hand over to Service Recipientall copies 01:

(i) documents provided by Service Recipient; and

(ii) Design Doeumentation prepared by Contractor lo Ihe date of
terminalion (whether complete or nol).

(g) II it is necessary lar Conlractor lo relain copies 01 these doeumenls or Design
Documenlation, Conlractor agrees lo keep conlidential any proprietary
inlormalion 01 Service Recipient.

(h) To Ihe extent Servioe Recipien! can use and makes use 01 parts 01 the Tolling
System already exeeuted prior lo Ihe termination, il Serviee Recipient elec!s lo
use sueh parts, Serviee Recipient shall pay to Conlraetor the value 01 such
parts. To the ex!ent Service Reeipíent eannO! use and dees not make use 01
parts 01 the Tolling Syslem, Contraolor shall remove, al ¡Is cost, sueh patis,
upon requesl by Service Recipient.

24.3 Termination by Contractor lor Service Recipient's Breach

(,) Solely with respee! to Ihe Build SOW, il Service Recipian! lalls lo pay
Contractor any undisputad Fees alter eertilication by Service Reclpienl as to
sueh Fees and Ihe lailure lo pay is nol due to Conlractor's delaull, Ihan
Contractor may deliver lo Serviee Reeipient a notiee in writing lnlorming
Serviee Recipienl thal il payment is nol mada wilhin twen!y (20) Business
Days afler Service Reeipient's receipt 01 the natica, Conlracter may suspend
Iha Serviees lo which the non"payment relates. Contractor shall immedialely
resume performance 01 its obligations under Ihis Agreement upen receipt 01
payment 01 Bueh undispuled Fees. II Contractor is entrUed to suspend
performance 01 ¡he relevant works pursuenl lo Ihis Clause 24.3(a) and
payment 01 Ihe due emoun! the subject 01 the natice is no! made within twenty
(20) Business Days alter the delivery 01 the natiee Ihen at any time alter tha!
period, Contraclor may daliver lo 8ervice Recipienl a notiee eaeh lo Ihe Chie!
( Execulive Officer, General Counsel and Chie! Financial Officer 01 Service
Reeipien! in wliting advising that il payment is no! made wilhin two (2)
8usiness Days, this Agreement is terminaled. Any sueh nolice shall reler to
this Clause 24.3. M
~'B-,-,:~Xc ~
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page 82 of I1r
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(b) Solely with respee! lo the O&M SOW, il Servios Recipient breaches its
obligation lo pey Contractor any undisputed Feas after certilication by Sarviae
Recipient as lo such undispuled Feas and fails lo cure such breech within
thirty (30) days after receipt by SaIViae Recipient 01 notice thereo! ¡rom
Contractor referencing this Clause 24.3(b) Ihen, alter such thirty (30)-day
period, Contractor shall provida Sarvice Recipían! with a second notice each
lo Ihe Chie! Execulive Officer, General Coullsel and Chief Financial Officer of
Servios Recipient 01 such breach referencing tllis Clause 24.3{b). II Sarvies
Recipían! fails lo cure such breach within fifleen (iS) days alter its receipt 01
such second notice, then Contractor may terminate the O&M SOW upon
notice lo Service Reeipíen!. In the event that Service Reeipíent fails to pay in
time any undispuled Fees and Contractor is requirecf lo send to Service
Recipienl the second notice indicated in this Clause 24.3(b), and il such
situation occurs three times during the course 01 the telm 01 the O&M SOW,
Contractor, at any time thereafter Ihat an additional non-payment recurs, shall
have the right lo terminate the O&M SOW with thirty (30) days' prior wrilten
notice, if such non-payment is not cured within a ten (10)-day period 01 the
writlen notice.

(e) In Ihe event Contractor terminates this Agreemenl pursuanl to Clause 24.3{b),
Contraclor shall have the righl lo exercise all remedies afforded lo il uncler
Law, including require speeilic performance and claiming damages and
Demobilization Costs.

24.4 Terminallon Wlthout Cause

(a) PRHTA may lermínale this Agreement by providing Contractorwilh ninety (90)
Business Days' written notice. Serviee Reeipíenl may terminate any Service
being received under Ihe O&M SOW by providing Contractor wílh ninely (90)
Business Days' wrilten notice.

lb) If PRHTA terminales Ihis Agreement pursuant to Clause 24.4(a), PRHTA
shall, subject to its acclued and olher righls under this Agreement, pay to
Contraclor Ihe amount payable lo Contraclor by the applicalion of Article 17,
plus Demobilization Cos/s. If Service Reeipienl terminales any Serviee being
received under Ihe O&M SOW pursuan! lo Clause 24.4(a), Service Reeipient
shall, subjecl lo ils acerued and other rights under Ihis Agreemenl, pay tI;)
Contraclor the amounl payable to Contraclor by the applieation 01 Article 17,
plus Demobilization Cosls.

(e) Conlractor's enlitlements under Ihis Clause 24.4 are its sole enlitlement lo any
payment or compensation of any kind from PRHTA in conneclion with Ihe
lerminatiorl olthis Agreement or any Service under Clause 24.4{a).

24.5 Terminalion by Convenienee

PRHTA, al ils sole discrelion and lar arly reason, may termínate Ihis Agreement by written
( notice lo Ihe Contractor Ihirty (30) days befare Ihe date on which Ihis Agreement will erld,
withoul it being understood thal the Contractor is entitled lo additional compensalion, excepl
whal ís aecrued up to the date 01 Ihe notification. [Law 237-2004].

EXECUl'lON COPY ----e-"-.-e 83 o~~


24.6 Termination for Legal Malfeasance

Notwilhstanding lhe aforementioned, Ihe prior notice requirement does nOI apply, Iherefore
annulling the contrae! immediately and freeing Ihe PRHTA from Hny liability Ihereunder, when:

1. When probable cause far arres! has besn found against Ihe Contractor or any 01
his shareholders, partners, officers, principals, employees, subsidiaries or paren!
companíes for an offense agains! the public finances, falth and public serviee,
againsl government or involving public funds or property, in ¡he federal or state
level [Law 458"2000, as amended by Law 285-2004];
2. The Contractor, or any 01 his shareholders, partners, officers, principals,
employees, subsidiaries or parent companies, incurs in negligence, abandons Mis
duty, incurs in misconduct or breaches this Agreement [Law 237-2004]; or
3. The Contractor, or any 01 his shareholders, partners, officers, principals,
employees, subsidiaries or parenl companies has been convicted 01 crimas against
public integrily, as defined in 1he Penal Code or embezzlemant 01 public lunds and
has not yet been convicled 01 the offense in the courts 01 the Commonwealth 01
Puerto Rico, in Ihe federal courts or Ihe courts 01 any other Jurisdiction 01 the
United States or any other oountry [Law 237-2004].
4. The PRHTA underslands thal there is an exlraordinary fiscal siluation Ihal warrants
immediale spending culs.
a) In lhe evenl lhat Ihe funds appropriated lor the Conlraet are reduced
or canceled lor reasons oulslde ollhe PRHTA's conlrol, the Parlies
acknowledge thal the Contracl shall lermínate as 01 lhe date on which
the Contractor is notifiad in wnting 01 Ihe same. In such event, Ihe
Conlractor shall be compensaled lor all Services provided, íncluding
until Ihe date 01 lhe written notíce 01 lhe change in lunds, in
accordanee with the lerms of Ihe Conlrac!. 1I Ihe appropriated lunds
are reduced, the Parties sha!1 have tha oplion lo negotiale a new
contrad lor tolling services subject lo Ihe limitalion on funds available
lo Ihe PRHTA.
b} In Ihe evenl lhe Contrad is canceled or terminated, Ihe Contraclor
shall submil a linal, written report Belting lorth the Services rendered
and pending items as of Ihe dale 01 cancellation or !ermination. The
PRHTA shall only be obligated lo reímburse Ihe Conlraclor for
Services rendered through !he date of cancellation or termination.

24.7 Terminatlon lor Deterloration of Flnancial Condltlon

Service Recipienl may !erminale this Agreemenl in !he event that (a) Conlrador files a volunlary
patilion in bankruptcy or an involuntary palition is liled againsl il; (b) Contrador is adjudged
bankrupt; (e) a courl assumes jurisdiclion 01 lhe assels of Conlraclor under a federal
reorganization aet, or olher s!alute; (d) a !rustee or receiver is appointed by a courl lor all or a
substantial portion of the assels of Contractor; (e) Conlractor becomes insolvent, suspends
\ business or ceases lo oonduct ils business in the ordinary course; (1) Conlractor makes an

assignment of a significanl amount of ils assets for !he benefit of i!s creditors; (g) a material
adverse change occurs in Conlracto~s bUSiness, propertles, financlal condlllon or

EXECUTlON COPY page 84 uf 116 ~
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(h) Contrac!or's external atldilor gives Contractor a "goin9 cancam" explanation or qualification:
or (i) Moody's, Standard & Poor's or Fitch, or other equivalen! rating agency, lowers Contractor's
eradi! rating below "investment grade" (e.9., in the case of Moody's, a reting lower lhan Baa3; in
Ihe case of Standard & Poor's, a rating lower ¡han BBB-; in Ihe case of Fitch, a rating lower than
BSB_; or, if ¡he defir18d ratmgs shall have been revised by Moody's, Standard & Poor's or Fitch,
en equivalen! retinglo Contractor shall give Servica Recipient prompt natiea of any such event

;24.8 Terminatlon for Key Performance Indlcator Failure

Service Recipienl may lerminate Ihis Agreemenl upon nolice lo Contractor il Conlraotor (i) lails
lo meel a Key Performance Indicalor al any time, during a six (6) consecutive month period, or
(ii) the Contrador lails lo mee! performance standards lo a level which would amount to a
reduction in the invoice 01 10% or higher lor lour (4) monlhs, which need not be subsequent

24.9 Terminalion lor Change in law

Service Recipient may lerminale thís Agreemenl upon ninety (90) days' nolice (or such earlier
period 01 lime as required by an Aulhority) lo Conlraclor il any change in Law, or an applicable
Aulhority imposes a binding reslridion or requiremenl !hal, makes. or shall make. il impossible
or substantially impracticable for Sarviee Recipienl lo continue lo receive Ihe Services;
provjded, however, thal Ihe Partíes ahall negoliale in good faith a work around wi!h resped lo
sueh change in Law or binding restriction or requirement during such ninely (90)-day periodo In
¡he event Ihal such change in Law or Issuance 01 guidance is due primarily lo Ihe adions 01
Contraotor, its Affiliates or agenls (whether or not related lo Ihe Services), Ihen such lerminalion
shal] be Irealed as il il were a lermination for cause. In Ihe event tha! such change in Law or
issuance of guidance ia due primarlly lo the ac!ions 01 Service Recipienl, ils Affiliales or agents
(whether or nol related lo Ihe Services), Ihen such terminalion shall be Ireated as il il were a
lerminatíon under Clause 24.4.

24.10No Other Termlnation Rights

Despile any rule 01 jaw or equity to Ihe contrary, neither party may terminale, rescind nor Ireal
as repudialed Ihis Agreemenl or any righls under Ihis Agreemen! olher lhan as expressly
provided lor in Ihis Agreement.

24.11 Limitation

II Ihis Agreemenl is lerminated. Conlractor recognizes and accepls that any righl il mighl have
lo pursue a claim shall be limited lo a claim(s) lor compensation as specifically indicated in Ihis

24.12Effecls of Terminatton

II this Agreemenl is lerminated. Conlractor shall follow all diredions given by
Service Recipíent lor Ihe orderly terminalion 01 Services.

(b) Contrador shall take all reasonable efforts lo mitigate any loss occasioned by
an early termination oflhis Agreement.

. ()"..C~
EXECUTlON COrY.-'-_ _ _ __ Pag~ 85 01 116
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(e) Contrnctor shall, wilhin seven days afler the date 01 termination, deliver lo
Serviee Recipíen! any Confidential Informalion 01 Service Reclpien! in
Contractor's pO$session or certify as lo the deslruclion 01 such Confidential

(d) In the event 01 any such termination or expiration:

(1) Conlractor shall implemenl the Exi! Plan upon SeNies Recipient's
raques! and cease lhe terminated Services upon the effective dale 01

(ii) any rights granted lo Contractor under lhis Agreement in SSNiee
Recipient's intelleclual property shall terminale al Selviae Recipient's
direction and Contractor shall (A) deliver to Service Recipient, a
curren! copy 01 the Service ReGipien! intellectual property in ¡he lorm
in use as of the dale ollermination or e)(piralion 01 lhis Agreemenl, as
applíeable and (B) deslroy or erase all olher copies 01 lhe Serviee
Recipienl intelleclual property in Conlraclor's possession. Conlraclor
shall, upon Serviee Reeipienl's request, certily in writing to Service
Recipienl, in a form acceptable lo Serviee Reoipienl and execuled by
an aulhorized officer 01 Conlractor, lha! all sueh copies have been
destroyed or erased;

(ili) Conlrac!or shall only be enlilled lo paymenl lar Services properly
performed prior lo ¡he effec!lve dale 01 lellTlination, apportioned
according lo any deliverable ProJeot Mileslones or fixed price
arrangemenls il paymenl is other Ihan on a time and malerials basis
(however, Contrac!or shall nol be entitled lo any paymenl for
deliverable Projecl Milestones thal have no! been mel il lerminalion is
by Service Recipienl due lo breach by Conlractor);

(iv) Conlraclor shall (A) deliver lo Serviee Recipienl a copy 01 the
applicable Contraclor IP (olher Ihan any third party inlellectual
property), irl the lorm in use as of lhe dale 01 terminalion or e)(piration
01 Ihis Agreemenl, and Serviee Reeipienl shall have the rights
described in Articte 5, and (B) upon Serviee Reeipienl's request, with
respec! lo any lhird party intellec!ual property Ihal Contractor has
licensed or purchased and is using lo provide lhe Serviees as of lhe
termination (or expiration) dale, Contraotor shall Iransler, assign or
sublicense such Ihird party inlelleclual property to Servies Recipíen!
or ils designee, provided, however, Ihal Contraclor may relain a
licerlse lo such Ihird party intelleclual property lo Ihe extent necessary
lo continue lo provide Serviees ur.der Ihis Agreemenl lo the other
Servíoe Reeipíenl and as neeessary lo mee! ¡Is obligatiorls upon a
lermination or expiralion with respecl lo slIeh olher Serviee Reeipienl
as required under this Clause 24.12(d}(iv)(B);

Conlrac!or shall deliver lo Service Reoipient a eopy 01 all Developed
\ Software, ir. Ihe form in use as of Ihe date 01 lermination or expiration
01 this Agreemenl,

EXECUTION cor~,______
_ _ _ _ _ _ _ page 86 of 116
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(vi) UpOI1 Servíos Recipient's raques!, with respect lo any agreements for
maintenance, disasler recovary ssrvices or other Ihird party services
ar any hardware no! owned by Contractor being usad by Contractor
specifically lor Ihe beneli! 01 Servícs Recipient lo provide Ihe Services
as 01 Ihe effectiva dale 01 expiration or lerrninalion 01 this Agreemenl,
and Contrnctor shall transler or assign such agreements lo Service
Recipient or ¡Is new service provider, on lerms and conditions
acceptable lo all applicable partías; and

(vii) upor! Service Recipient's raquest, Contractor shall sell to Service
Recipient or ¡ls new servios provider Ihe hardware used by Conlraetor
Of ils Subeonlractors primarily tor lhe benefil 01 Serviee Recipient lo
perform Ihe Services as 01 the effec!lve dale of expiralion or
terminalion 01 this Agreement, lree and clear of all liens, security
interests or other eneumbranees al the lesser 01 the fair marke! value,
as shall be determined by an agreed-upon appraisal, and tha book
va[ua, plus any applieab[e de-bonding eharges.

24.13Termination Assistance

[f Ihis Agreement or any Serviee terminales or expires, in whole or in part, ror any reason
(including lermination by Conlraetor due lo breaeh by Serviee Recipient or rejaction 01 this
Agreement under applieable bankrupley law) Service Recipient may require Contractor, for up
to 24 monlhs afier the effeetive date 01 sueh lerminalion or expiralion, lo: (a) continue to
perform the terminated or expired Serviees (or portion thereo!); (b) cooperale with Service
Recipient or anolher supplier designaled by Serviee Reeipient in the transler 01 the Services lo
Serviee Reeipient or such other supplier in order lo lacllitate the transfer 01 the Services lo
Service Recipient or such other supptier; {e} al the option and direction 01 the PRHTA, assign all
cse lease(s) (il any) lo Ihe PRHTA (or ils designee) al no addilional eost or expense to the
PRHTA and the PRHTA (or ils designee) shall assume all obligations and liabilities 01 the
Contractor under sueh CSC Leases, other Ihan obligations or liabilities related lo breaches by
the Contractor 01 the cse Lease(s); and Id) perform any other seNiees requesled by Service
Recipielll lo Iransfer the provision 01 the terminaled or expired Services lo SeNice Reciplent or
another supplier, including any services set forth in Ihe Exit Plan (the services in elauses {a}
through (e), the uTerminalion Assistance Serviees The Terminetion Assistance Services shall

be considerad uServiees" and shall be performed and paid in accordance with this Agreemenl
Illhere are no established rates lor the services in ctause (e), Ihe Parties shall negotiate rates
for sueh serviees eonsistent with Ihe Fees (e.g., comparable discounts). There shell be no
additionel Fees tor providing the eooperation described in elause (b) unless sueh cooperation
requires edditional resourees over and aboye those used 10 provide the Services without
eausing disruption in the Services. During any Termination Assistence Period, the Termination
Assistance Services shall be of the sama quallty, level 01 performance and scope as provided
prior to lermination, bul not less than as required under this Agreement.

25.1 Inltlal Notiee

Page 87 of 116
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1I Gontractor alleges ar wishes lo claim tha! a Force Majeure Event has occurred, Contractor
shall promplly give Service Recipient notice ollhe Force Majeure Evellt as $oon as Contractor
bacomes aware 01 Ihe occurrence 01 the Force Majeure Event.

25.2 Particulars

As 800n as reasonably practicable after giving notice under Clause 25. 1, Contractor shall give
Servies Reclpíen! (progressively il necessary) additional notice wilh the full particulars of all
relevan! mallers pertaining lo the Force Majeure Evenl including:

(a) lhe natura ofllle Force Majeure Evenl;
(b) the obligations 01 Contractor under this Agreement affected;

(e) the aclion ¡hal Conlrector has laken andtor proposes 10 lake lo remedy ¡he ils

(d) an eSlímate 01 Ihe lime during which Conlractor will be unable 10 provide Ihe
affected obligations due lo Ihe Force Majeure Event;

(e) en estímate oflhe COSIS Ihal Contractor will incur lo remedy Ihe situalion; and

(1) 1.111 insurance moneys lo which Contractor believes it will be enlitled in making
good damage caused by the Force Majeure Evenl.

25.3 Continulng Updates

After giving notice under Clause 25.1 and Clause 25.2, Conlractor shall continue lo keep
SeNics Recipienl informed of 1.111 relevanl informalion pertaining lo lhe Force Majeure Evenl.

25.4 Meeting

(a) The Partíes shall meel as soon as reasonably possible after service 01 a notice
under Clause 25.1 lo delermine:

(i) whelher a Force Majeure Evenl has occurred;

(ii) illhe Force Majeure Evenl is covered by insurance and il so, 10 what
extent; and

(iii) Ihe estimated length of time lor which Ihe Force Majeure Event will

(b) The Parties will be bound by any decision by the Service Recipienl or the
Aulhorities in relalion to the issues listed in this Clause 25.4.

25.5 Suspension of Obligations

( 1I il is determined lhat a Force Majeure Event has occurred and Conlractor has given notice
under Clause 25.1 and Clause 25.2: ~

( (


(a) Conlraclor's obligalions under this Agreement (other Ihan Ihis Articla 25)
which are affected by the Force Majeure Event will be suspended, bul only lo
¡he axtsn! and lor so long as those obligations are affecled by the Force
Majeure Event; and

(b) no defaul! notice may be given in respect 01 a breach 01 any obligations wlich
are suspended under this Articls 25 during Ihe periad 01 suspension.

25.6 Recommencement
UpOIl Contractor becoming abta lo recommence performing lis obligaliol1s which were
suspended under this Article 25, COl'ltractor shall recommence Ihe performance 01 those

25.7 Bes! Efforts lo Mitigate Efleet

During Ihe period 01 suspension, Contractor shall use ils basl efforts lo overeoma or mitigate the
elfacts 01. Ihe Force Majeure Event. This may inctuda incurring reasonabla expenditure,
reseheduling resources or implemerltirlg appropria!e temporary measures.

26.8 A!ternatlve Arrangemerlts

During Ihe period 01 suspension, Serviee Recipient may make allernative arrangements lor the
performance 01 arly suspended obtigations (without ineurring any Iiability lo Conlractor).

25.9 Cessation 01 Force Majeure Event

Conlractor shall notily Sarviee Recipierll immediately alter il ceases lo be prevented or delayed
Irom performing ils obligations as a resull 01 a Foree Majeure Event.

25.10No Financlal Re!ief lo Conlractor

SelViee Recipienl will no! be obliged lo provide any financia! relie! lo Contractor during Ihe
period 01 suspension, except !or work already performed and aecepled.

25.11 Termlnatlon for Force Majeure

(a) SeNiee Recipient may in lis absolute discrelion termirlate this Agreement
immedialely upon notice in writing lo Contractor jI il lorms the reasonable
opinion lhat lhe Services cannot be compleled as a consequence 01 Force
Majeure or will not resume wilh 45 days after a notice pursuant lo Clause 25.1
and Clause 25.2.

(b) Where Serviee Recipienl terminares lhis ,l\f¡reamenl pursuanl lo this Clause
25.11. the total amounl payabla to Con!ractor will be lhe amount equal lo Ihe
amounl determined by Serviee Recipian! as being the aggregale 01:

(i) lhe Serviees performed up lo lhe dale 01 Ihe evenl 01 Force Majeure:

EXECUTlON COPY page 89 01 116
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(ii) liabilities lo Ihird parties as a reBult 01 the termination due lo Force

25.12 Business Continulty Plan

Contractor shall maintain business continuily and disaster recovery plans (collectively. Ihe
"Business Conlinuity Plan") providing tor continuirlg operations as Ihe rasul! of an event
affecting, disrupting or adversely impacting Contractor's abilily lo perform ¡Is obligations undef
this Agreement, which Business Continuity Plan shall be commercially appropriale given Ihe
natura of Ihe operations of Ihe Contractor. Conlractor shall test Ihe Business Continuily Plan al
leas! once each year and address any material dellCiencies revealed in 6uch test In a
commereially reasonable lashion. In addition, if requested, Contractor shall provide Serviee
Reclpient's regulators access lo such test results_ Upon Ihe oecurrence 01 an event thal Iriggers
Ihe Business Continuity Plan, Conlractor shall promplly (a) nolify Service Reeipient of such
event, (b) implement the Business Continuily Plan and (e) use commercially reasonable efforts
lo restore Contractor's operalions within Ihe lime frame specllied in the Business Conlinuily

25.13 Step-ln Rlghts

('l In Ihe evenl (i) of a malerial breaeh 01 an obligation 01 Contraclor wilh respeet
01 the Service or in Ihe evenl of Force Majeure evenl or (ii) Service Recipien!
Is directed, or required, by a Law or Aulhority lo slep in, Service Recipienl may
slep in and supervise or perform, or designale a Service Reclpien! Associate
lo slep in and supervise or perform, Contractor's performance of Ihe impacted
Services, until sueh time Ihal Con!raclor can demonslrale Ihe ability lo resume
01 such Services (Ihe dale SE¡rvice Recipienl sleps.in, the
Conlractor shall be liable lor Serviee Reeipienl's eosls and
as a resull 01 exereising its righls under Ihis Clauss 25.13
Majeure or il requlred by Aulhority or applicable Law.
i t' exercise 01 ils righls under this Clause 25.13 shall nol
it by Service Reeipienl of any ¡ighls il may have (inciuding
rights lo lermínate Ihis Agreement) before, on or afler lhe
Step-In Dale. Conlractor shall eooperale wilh Service Recipien! or Service
Recipient's Associale in respect of such slep-in, including by providing access
lo Software, hardware and Siles and any olher assislance and information
requested by Service Recipienl or any Service ReGipient Associale, including
by providing Service Recipienl or any Service Recipienl Associale space al
any Sile. In the evenl Serviee Recipient exercises ils righl lo termínate Ihis
Agreemenl in eonnection wilh Ihe evenls giving rise lo a step-in, Service
Recipienl may initiale or continue lo exerclse its step-in rights during Ihe
Terminalion Assistance Period

lb) II Servies ReGipíenl exeroised its step-in rights in aceordance wilh Ihis
Clause 25.13, Service Recipienl may elecl lo cease exercising ils right lo slep_
in al any time by gíving noliee lo Conlractor ("Slep-Out Nolice").

(ol Wilhin Ihree (3) Business Days alter Ihe Slep-ln Dale, Conlractor shall
develop a plan to demonstrale lo Service Recipienl how it shall resume Ihe
proper performance 01 Ihe applicable Services ("Slep-Out plan"), anC~1

EXECUTION COpy Page 90 of 116
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provida such Step-Out Plan lo SeNiee Recipient lor approval. Approval by
Servies Recipient ofllle Step-Out Plan shall no! constitute a waiver by SeNiee
Recipient 01 any righ!s il may have il Contractor is unable lo petform any 01 lis
obligations in accordance wllh lhe terms 01 Ihis Agreement after the Step-Out
Date. The Step-Out Plan and delivery 01 lhe Services shall remain
Contractor's responsibility.

(d) Following receipt and review of any Step-Oul Plan, Service Recipienl shall
either (i) confirm lhe date lor resumption of lhe affecled SSl\Iices by Contractor
as being Ihe date se! out in the Step-Out Notica ar (ii) revise lhe date lo refleel
the time lo implemenl Ihe Step-Out Plan and the atale of readineas 01
Contrndor. The dale notilied by Serviee Recipient under elause (i) ar clauae
(ii) shall be Ihe "Step_Out Date", Once SeNiee Reeipienl has notilied
Contractor 01 a Step-Oul Date, Conlractor shall devote all necessary
resources to implemenl Ihe Step-Out Plan such Iha! delivery 01 ¡he affected
Serviees by Contractor is restored, and Iha! Ihe affeeled Serviees are
delivered in aceordance wilh all other provisions 01 Ihis Agreement, Irom Ihe
Slep-Out Date.

(e) During any step-in period, Ihe Parties shall mee! al leasl weekly lo diseuas
progresa toward remedying the evenl which gave riae lo exercise 01 lhe step-
tn right, including decidlng whether or nol Contraelor can resume performance
01 the affec!ed Services. By exercising ils fighl lo slep-in Serviee Recipient
shall nol, and shall nol be deemed lo, assume any obligation to resolve ¡he
evenl givlng rise lo its righl to step-in or relieve Conlractor of any obligalion or
liabilily in relation to Ihal evenl or relieve Conlractor 01 any 01 ils olher
obliga!ions or liabilitiea under IMis Agreement. Contractor shall not be liable lor
any damages eaused by any Service Recipient Associales in performing Ihe
s!ep-in Services.




28.1 ServlceAudits

Upon reasonable prior nolice lo the Contractor, Contractor shall provide Serviee Recipient
Audi!ora with aceess to, and any assistance and informatlon Ihal Ihey may reasonably require
wí!h respec! lo, the Sites, Services and Tolling System lar purposes 01 audiling Conlractor's
complianee wilh this Agreemenl, Ihe SOWs and applicable Law and Ihat Ihe Tolling Syslem is
opera!ing in accordanee with Ihe Requirement Specifica!ions. Upon notifieation Iha! an audit
identilies Ihal: (a) Contraetor is nol in compllanee wilh this Agreement or an SOW; or (b)
Servíoe Recipienl is nol in compliance wilh applieable Laws due lo Conlractor's non-complianee
wilh Ihis Agreemenl, an SOW or applieable Laws, in each case, Conlractor shall promptly
correol sueh non-complianee and il such eorrection takes more Ihan 72 hours lo complete
Contrnclor shall provide Service Reeipient a plan for eorreeting such non-compliance no later
than 24 hours afler sllch 72-hour penod, lor SeNlee Reelplent's revlew and approval, _~

( (


26.2 Financia! Audits

UpOI1 natíoe lo Con tractor, Serviee Recipient shall provide Service ReGipíen! Auditors with
access lo suoh racords and supporting documentation as may be requested by Servies
Recipient Auditors lo audi! and determine if lhe Feas are aeGurate and in (lccordance with this
Agreernent, as well as compliance with financial lelms and conditions 01 this Agreement. 1I
such audí! reveals Iha! Gontractor has ovarcharged Servíoe Rscipient, upan l10tice 01 Ihe
amOUrlt 01 such overcharge: (a) Contractor shall promptly provide a credi! note lo Service
Recipient lar Ihe amount 01 the overcharge; 9nd (b) il Ihe amount 01 lhe overcharge is grealer
lhan live pereent (5%) 01 lhe amounl 01 Fees that were subjeel lo the audit, Contractor shall
promptly reimburse Serviee Reeipient lor the reasonable cost and expense 01 such audi!.

28,3 Control Audits

Service Recipienl shall, from time.lo-time, provide to Contractor the Control Objeelives_
Contraetor shall comply with, shall provide the Sarvices to satisfy amI shall otherwlse not cause
Ihe Service Recipient's computer systems lo fail lo satisly, the Control Objectives (including any
corrective recommendations or other Service Recipient tnstructions). Contractor shall assist
Servies Recipient in addressing its audit control requirements relating lo the Control Objectives,
including by: (a) partíclpating in any revíews by Serviee Recipient as lo compliance with such
requirements; and (b) includíng Serviee Recipient in any reviews by Conlractor as lo compliance
with auch requirements. Contractor shall promptly remedíale any weaknesa or deficiency that
has resulted in a qualilied controls audit as a result of any lailure by Conlractor to comply with,
or to provide Services which comply with, the Control Objectivea, at lis cosl and expense.

28.4 Annual Thlrd Party Audll

(,) Each year, Contraclor shall, at ils casI and expense, engage a mulually
agreeable third party auditor lo provide an audit report lor each Sile lor
purposes 01 auditing Contractor's compliance with this Agreement, the SQWs
and applicable Law and that the Tolling System is operatil1g in accordal1ce
with Iha Requirement Specilications. Service Recipienl shall cooperale with
Contractor and sucl.. audilor to determine scope and control objective
requirements lar the reports. Aa soon as reasol1ably practicable following
Contractor's receip! 01 such reporta, but no laler than September 15 01 each
year covering a period commencing July 1 01 Ihe previous year through and
inctuding June 30 01 the then-curren! year, or such other dates as provided by
Servíce Recipient lrom time-to-time. Contractor shall provide Service Recipíent
and its external auditors with a copy 01 such report to Ihe extent related to the
proviaion or receipt 01 Ihe Services and Service Recipient may share a copy of
such report with its customers, customer's agents and regulators.

(b) Every 180 days, Contractor shall permit, and reasonably cooperate with,
Servíee Recipient Auditors lo conduct an audit 01 financia' controls and the
security, availability, processing integrily, confidentiality and privacy controls
implemented by Contraclor in cormection With the Services (including, as
directed by Service Reeipient, lor each of Contractor's Subcontractors and at
each 01 the Sites). Contractor shall respond lo inquiríes reaarding such audit
lrom SeNies Recipient and its external auditors as necessary.


Centres d'intérêt liés

Page 92 o/ 116
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(e) With raspee! lo any audi! reports ¡ssuad under this Clause, Contrnctor shall
promptly remediate any weakness or deficiency identified in such reports or
tha! oould reasonably be expected lo rseul! in a quallfied report, Such
remediation shall be provided al Contractor's casI end expense.

(d) If Service Recipienl determines tha! an additional or alternativa Ihird party
report sel forth in Ihis Clause 28.4 is sufficient lo salisfy Servies Recipíerlt's
audí! and reporting requirements, lhell Contractor shatt, al Servies Recipient's
request, perform ¡ts obligations relating lo lhe ¡ssuanes 01 such naw audí! or
certificstion and any associated remedialion work arising lherefrom. The
transilion lo sueh additional or alternativa Ihird party audil or certifieation shall
be at Sarvioe Recipienl's expense, wilh lhe Fees lo be adjusled equitably lo
relleel any ongoing expense lo Contractor, other Ihan for remediation required
by applicable Law or Ihe lerms 01 this Agreemant.

28.5 Facilities

Contractor shall provide SeNice Recipienl Auditors wilh space, oflice lurnishings (including
lockable cabinets), lelephone, inlernet and facsimile saNices, utilities and duplieating seNices
and reasonable aecess to systems, data and reports conlaining SeNice Racipient inlonnalion
on Contractor's premises as Service Recipient Auditora may require lo perform Ihe audits and
inspections described in Ihis Artiele 28. While on Conlrae!or's premises, SeNice Recipient
Auditors shall comply with Conlrae!or's slandard securily policías gene rally applicable lo third
parties perfonning seNices on Conlrae!or's premises.

28.6 Regulalory Audlts
Contraclor shall, upon reasonable prior nolice when possible, make all books and records thal
relate lo lhis Agreemenl available lo the applicable Servlce Recipient ragulators and
government representatives or Iheir designaes (including an Authority) lo audi!. evaluale and
inspeet Conlractor's books and racords. Contrae!or agrees to comply wilh any regulalory
requirements relatad to audils or inspeclions imposed upon SeNice Recipient.

Conlractor warranls Ihal lo Ihe bes! 01 ils knowledge no conflie! 01 inleres! exists or ís likely to
arise in Ihe performance 01 ¡Is obligations under Ihis Agreement.

Contraclor shall not. during Ihe course 01 this Agreement engage in any activity likely lo
compromise Ihe abilily 01 Contractor lo perform its obligations under this Agreement lairly and
independently. Conlrac!or shall immedialely disclose to SeNice Reeipien! any aetivity which
constitutes or may consUMa a con/lic! 01 inlerest.

Contractor shall nol assign, Iransfer, mortgaga, charge or otherwise deal with ils inlerasl in or
obligations undar Ihis Agreemen! without SeNice Recipient's plior written consen!. Service
Reclpient may consenl lo the assignmenl 01 this Agreement subjecl lo such conditions as it
chooses lo impose.

Pago 93 of 116
- -


Contractor agrees tha! 5ervice Recipienl can assign lo ils nominee or successor any rights and
obligations under this Agreement. Contractor will do all things and execute all documents
necessary ar requested by 5ervice Recipient (a! Service Recipient's casI) lo give effecl lo the
assignment contemplated by lhis Article 30, including entering ¡nlo a contrae! 01 assignment
which shall be in a form reasonable acceptable lo Service Recipient

Any <lssignment under this Article 30 shall be agreed and executed by COl'ltractor al no cosl to
Service Recipienl or the assignee, provided ¡ha! the benefit 01 lhe license granted under this
Agreement is used only with regard lo Ihe Tollroad.

31,1 Modilicalion Proposa!

(a) Service Recipient may issue lo Conlractor a nolice entitled "Modificalion
Proposal" selting out the details 01 a proposed Modification which il is
considering, including Serviee Recipient's proposed requírements lor the
implementation 01 lhe proposed Modilication. Serviee Recipient will not be
obligad to proceed wilh any Modilicalion proposed in a "Modification

(b) As soon as practicable and in any event within ten (10) Business Days afler
recaipt 01 a Modifieation Proposal, Conlractor shall provide Service Racipient
with a notice ("eontractor's Modifieation Notíee") selting out detailed
particulars of:

(i) eontracto~s estímate 01 the Modilicalion eosts whieh il will ¡ncur, or
the Modifieatíon Savings whieh il will derive, by providing the
pro posad Modification ineluding a breakdown 01 lhose cosls;

(il) the effecl which tha proposed Modffieation will have on the program;

(iii) tha affec!s whlch the proposed Modillcation will have on:

(A) the workmanship, durabilily or lunc!ional integrily 01 any
element ollhe Tolling System or lhe Tollroad;

(B) lhe use 01 the Tolling System or the Tollroad by the general
publie lor the sale, efficient and conlinuous passage 01
vehicles; and

(e) Contractor's ability lo hand-over the Tolling System in
accordanee with the requiremenls 01 this Agreement;

(iv) Contractor's ability lo:

(A) satisly any warranty given by Conlraclor under Ihis
( Agreement or

(B) perform any 01 ils other obligallons under this Agreement;

( (


(v) a deleitad explanalion 01 the circumstances ir lhe Validity Periad is
less than 25 Business Days; and

(vi) 8ny olher relevan! information requested by SeNies Recipíen!.

31.2 Canten! of Contractor's Modlflcation Notlce

(a) Contractor's Modification Notice shall be preparad:

ti) so as lo avoid, as lar as practicable, ¡he need lar a new Approval or a
Madi/icalian lo an exisb'ng Approval lar the implemel'ltalion 01 the

(ii) on an open book basis wilh respee! lo Contractor's internat casls and
Ihe oasIs 01 any Relevan! Entity (and lo this end Conlractor shall
allow SSTVice Recipient review and eudí! righls sufficient lo verify tha!
Con!ractor's Modificalion Notice has been prepared in accordance
with the requiremenls of this Agreement (includlng Ihe definition 01
"Modification Costs"));

(iii) assuming Contractor is a wilí'na, effiGient and competent provider of
the Modification in an etficient and competitive market;

(iv) in a manner which is consistent wilh lhe requirements of Service
ReGipíen! lor the implementation 01 the Modificatlon;

(v) having regard to minimizing Ihe disruption to users of Ihe Tollroad;

(vi) having regard to minimizing any delay in achieVing events or dates
set forth In the Project Schedule (including Tolling Commencement,
Tolli~ System Completion, Main ETCS Site Completion, DR Site
Completion, Tolling Points Completion, Final Completion, Tolling Day
Three and Close-Out) to the extent Iha! they have not yet been

(vii) having regard to minimizing any adverse safety impacls 01 the

(viii) in a manner which ensures that all appropriate insurance relevanl lo
Ihe Modification is taken out and maintained consislently with those
Ihal would have been required by Service Recipient il the Modification
had been inctuded in the Services as applicable, as at lhe date 01 Ihis
Agreement unless SelViee Recipient olherwise determines; and

(Ix) in a manner so that there is no cosl or expense Iha! is charged more
than once.

31.3 Election
(,) Within the Validily Periodo Servlce Recipient shall either: (\ ('i/

EXECUTION co~eC''--__
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_ _ _cpage g5 of 116


(i) advise Contractor Iha! il:

(A) requires further information andfor clarification with respect
lo Ihe Contractor's Modificalion Notice (in which case
Contractor shall provide Ihe further information within five (5)
Business Days after the request); or

(B) has reduced the scope ollhe Modification Proposal;

(ii) aecep! ¡he Contractor's Modificalion Notice and il Ihere are options,
nominate which aplion il accepts;

(jii) accept Ihe Contracto~s MOdilication NolicEl, bu! dispute ¡he proposed
casI 01 ¡he Modification, in which case Contractor shall proceed
diligently and expeditiously with Ihe Modificalion and a reasonable
value shall be agreed by the Partíes as soon as is praclicable. 1I the
I'arties lail to reach agreement within ten (10) Business Days after
Ihe notice, either Party may reler the Issue to dispute in accordanee
wilh this Agreemenl, but al <lll times Contractor shall eomply wilh the
oblig<ltion to proeeed;

(iv) rejeel Ihe Conlractor's Modification Notice; or

(v) withdraw Ihe Modification Proposal.

(b) 1I Serviee Reeipíent aecepls Contraelor's Modifieation Notice Conlraclor $hall
proeeed to implement the Modílication on the basis 01 Conlractor's
Modifiealion Notice (as aceepled by Servíce Reeípienl).

(e) 1I Service Reeipienl rejects Contractor's Modilication Notice Serviee Recipíent
may require that the Parties consult in good laith, and use Iheir reasonable
endeavors lo agree on a mutually acceptable resolution lo lhe malters set
lorth in Contractor's Modilication Notice which are in dispute. 1I the Partíes
reach agreement on the disputed maUers in Contraetor's Modilieation Notiee
and Serviee Recipient directs Contractor lo proceed with the Modification (by
nonce entitled "Modification arder"), Contraelor shall proceed lo implement Ihe
Modification on the basis 01 Contractor's Modificalion Notíce (as varied by the
Partíes' agreemenl, as recorded in Ihe "Modifieation arder", on Ihe malters in
Contractor's Modification Noliee whieh were in dispule).

Id) Illhe Partíes are unable lo reach agreemenl wilhin three (3) Business Days
alter the commencemenl 01 the consultatíon, Serviee Recipienl m<ly refer the
maller lor dispute resolution in accordance with Clause 32.9.

(,) Service Recipíent may dlrect Contractor lo proceed with Ihe Modificalion
pending Ihe oulcome 01 dispute resolution process. 1I Service ReGipienl refers
the maUer lor dispute resolution, il m<ly also diree! Conlractor lo proceed lo
implemenl the Modification by a notice litled "Modifieatíon arder whether or
nol the maUers in díspute have been <lgreed or determined in accordance with
this Clause 31.3. 1I Service ReGipíent gives such a nOlice, the disputed

_-fl-E C
EXECUTlON CüPY _'CO,""'_'_Ó_O,-,116~


matters will, unli] Ihe Parties otherwise agree ar a determination is meda in
accordance wilh Ariicle 32, be reasonably determinad by Serviee Recipient.

31.4 Instruction

(a) Whelher or no! Service Recipient has issued a Modification Proposal under
Clause31.1{a) and whether or no! Contractor has issLled a Contractor's
Modification Notice in response lo a Modification Proposal undar
Clause 31.1{b}, Sarviee Recipient mayal any time instluct Contractor lo
implemenl a Modificalion by issuing a notice entitled "Modification Order". In
Ihese circumstances Ihe matters of plica and aIree! 01 Ihe Mocliflcalion will,
until Service Recipient agree or a determination is mada in aceordance with
Article 32, be reasonably determined by Serviee Recipient.

(b) If Contractor disagrees with a matter detennined under this Clause 31.4:

(i) Contractor may refer the maller lor dispute resolution in accordance
with Articla 32;

(ii) Contractor shall proceed to Implement the Modification on the basis
determined by Service Reciplent notwithstanding that tha malters in
dispute have not been agreed or determined in accordance with
Article 32;

(iii) any necessary adjustments will be made lollowing the expert or
arbitralor's determination; and

(Iv) In the event the determinalion under Article 32 is in favor 01 the
Contraclor, Servioe Reoipient will bear all risks and cosls assooiated
wilh ils raquested Modificalion.

31.5 Modifications Proposad by Contractor

(a) Contractor shall no! vary the Tolling System, except as direolad and approved
by Servíoa Recipient in writing.

(b) Contractor may propose a Modifioation by giving a written notice with delails

(i) the proposed Modification;

(ii) tha reason lor the proposed Modification:

(iit) Contractor's estimate 01 the Modification Costs it will inour, or the
Modífication Savings il will derive, by providing tha proposed

(iv) the time within, and the mannar in which, Contractor proposes lo
\ implement Ihe proposed Modification;

¡'j the effects whieh the proposed ModlflcatlOn will have on Ihe progra~



(vi) Ihe effects which ¡he proposed Modification will have on:

(A) ¡he workmanship, durability or functional inlegrity 01 any
element oflhe Tolling System or ¡he Tollroad;

(B) ¡he use 01 the Tollroad by ¡he general public lar ¡he safe,
efficient and continuous passage 01 vehicles;

(e) Gonlractor's ability ro hend over ¡he Tolling System in
accordance with the requirements 01 this Agreement; and

(D) Contractor's ability lo satisfy any warranty given by
Contractor under this Agreement ar peñorm any 01 lis other
obligations under Ihis Agreement; and

(vii) ¡he changes (il any) requirad lo ¡he Approvals, and any additional
Approvals lo accomrnodate the proposed Modification.

(e) At Service Recipient's request, Contraelor shall provide in resped 01 any
Modilieation it proposes, a written statement stating tha! the proposed

(i) will not adversely affeet ¡he functional integrity 01 the Tollroad or lhe
abllily 01 Contractor lo provide the Serviees in accordanee wilh this

(ii) will not adversely affecl the quality standards, warranties and other
obligations required under this Agreement: and

(iii) any other information and supporting documentation Service
Recipient requires.

(d) 1I Contractor gives a notice under Clause 31.5(b) togather wílh any written
slatement or olher informalion or supporting doeumentation whieh Service
Recipíenl may require, SelVice Recipient will consider Con\raclor's proposad
Modification in good laith: and subjecl to Clause 31.5(e):

(j) may approve (wíth or without conditions) or rejeet tha proposed
Modifieation in ¡Is absoluta discretion by notice lo COntractor (which in
Ihe case of an approval shall be entitled "Modification Approval"); and

(jí) will be under no obligation lo approve the proposed Modilication for
the convenienca of or lo assist Conlrador.

(e) 1I Serviee Reeipient approves Ihe Modifieation:

(i) Contraetor shall proeeed lo implement the Modilieation on lhe basis
approved by Service Recipient; and
(íi) Contractor will be relieved of ils obligations under Ihls Agreemenl lo
the exlenl speeified in Serviee Recipient's approvaL~ ~

EXECUTlON co:~C---- ____ o • • Pege 98 9116
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(1) Sarvies Recipient shall, lo Ihe extent a Modification requested by Contractor is
required lo ell5ure thal Ihe Tolling System complies with a changa in Law, in
ils discretion:

(i) no! rejecl Ihe MOdification proposed by Contractor:

(ii) direct Contractor 10 provide a Modification in accordallce wilh Clause
31.1 lo address Ihe change in Law (as applicable); or

(m) lake such other action as Sarviee Recipienl considers necessaly lo
ensure ¡hal Ihe Tolling System complies wilh Ihe change in Law or
advancement in technology or operation and maintenance practices
(as applicable).

(g) 1I Ihe change in Law is a Discriminatory Change in Puerto Rico or Federal Law
than Article 33 will apply.

31.6 Contractor to Bear Rlsk and Cosl 01 Its Own Modificatlons

(a) Unless othaJWise agreed in writing by Service Reclpient, Contractor will bear
all n"sks and costs'

(i) assooiated with proposing a Modifioation;

(ii) reasonably incurred by Serviee Reoipient in assessing a Modilicalion
proposed by Conlractor;

{iii} associated with providing a Modilieation (including ¡he risk in relalion
lo obtaining and eomplying with Approvals) proposed by Conlractor;

(iv) Contractor will not be entilled lo make any Claim againsl Servlce
Recipient arising out 01, or relatad lo, a Modiflcation proposed by
Contractor and approved by Service Reclpíenl.

(b) II Contractor implements a Modilication proposed by Contractor tha! has a
Modificalion Saving, Contractor shall pay Service Recipient 50 peroenl (50%)
of any Modilication Saving. The Modification Savings may be set off againsl
any Modification Costs in respeet 01 the Services or whera this is not a set-off,
il shall be paid by Contractor to SelVioe Recipíent progressively within ten (10)
Business Days after each month in which tha relevant work has been deleted
01 omitted would have been undertaken bul forthe Modilicalion.

31.7 Dayworks

SelVioe Recipíen! may, in its absolule disoretion, direcl Contraclor lo complete a Modification
under the Build SOW (BUlld Customer Serviee being excluded Irom the Modification) on a day
labor basis. In such a case, the rates and condilions shall be the rates included in Ihis
\ Agreement or agreed between Ihe Partias before the work is eommenced, bul il not agreed or
included wi!hin this Agreemen!, Servica Recipien! will reasonably de!ermine tha rates to apply. (
Contractor shall keep comprehensive reeords 01 the work carned ou! ene! the weges paid an~

EXECUTlONC'C'C'C'_ _ __ _ _ _ _--'>cagc 99 o 116
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equipment usad. Dockets relating lo work carried out on this basis shall be signad by Serviea
Recipient's representativa al lhe ami 01 each day on wtich the work was performed. Any
materíals incorporated into ¡he Contrad works are lo be charged al actual casI lo Contractor,
plus a 1S pereen! mark"up lar overheads and profit. 1I required by Servioe Recipíen!, Contractor
shall submi! employee's time sheets, wage records, supplier ¡nvoiees, receipls and other
records nec9ssary lar Service Recipíen! lo verify any claims arising Irom signed dockets.
Serviee Recipíen! shall no! be [¡able lo pay any day labor claims unless ¡hay are supported by
reeords signed by Service Recipient's representative. In any event, a Modification under a Build
SOW, which exceeds 10 pereent (10%) 01 the initial amount payable by Serviee Recipient under
the Build SOW eannot be requested by Serviee Reeipient on a day labor basis. No
Modifications on a day labor basis are permissible under the O&M SOW.

31.8 Llmitation 01 Use

Contractor Will implement an ETCS such that routine modiflcations to business rules wili not
necessitate the use 01 this Article 31 lor Modilications. Business rule modifications that optimize
the distribution 01 violation notices, modily the timing 01 grace periods lor relills 01 cash
aecounls, periods oftime lor the application 01 serviee eharges, and similar modifications will be
accomplished through adjustments provided lo the ETCS such tha! no Modifications are
required and no charges associated with the Modificalíons are required.

31.9 Amendments 10 Modificatlons Procedures

The Partíes agree lo work together in good lalth following the Effective Date to make such
reasonable revisions to the foregoing Modificalions procedures as may be idenlifled by either
party lo streamlíne the Modifications notification and approval process and eliminate
unnecessary procedural delays.

32.1 Procedure lor Resolvlng Disputes

(a) Unless Ihis Agreement provides otherwise, any dispute between Servics
Reeipient and Contraotor arising out of or in oonneetion with this Agreement or
Ihe Services (ineluding questions conooming Ihis Agreement's exis/ence,
meaning or validity) ("Disputes") shall be resolved in accordanee with the
pro~edures se! lorth in Ihis Article 32.

(b) The seqllential procedure that is lo be lollowed to resolve a Dispute is as

(i) Eaeh Dispute shall be negotiated in accordance with Article 32;

(ii) II Ihe Dispute remains unresolved (in whole or in part) afler the
expiration 01 the period lor negoliation referred to in Artiele 32 and the
Dispute is one 01 Ihe following:

___{A{ _ _'_Dispute in relation to a MOdificatiO_"_' _c~ d
EXECUTION COpy _ _ _ page 100 of 116
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(B) a Dispute as lo Contractors entitlement lo en extension 01

(e) a Dispute as lo Ihe manner and timing of Ihe payment;

(O) a Dispute as referred la in Clause 31.2;

than Ihe Dispute shall be referrad lo expert delerminatioll in accordance
with Clause 32.3.

(e) II (1) lhe Dispute remains unresolved {in whole or in part} aftar Ihe expiration 01
Ihe periad for negolialion referred lo in Clause 32.2 and Ihe Dispute is no! one
01 Ihose referred lo in Clause 31.1(b)(ii); or (ii) Ihe Dispute has been referrad
lo expert delermination; amI a determination is no! made by Ihe axpert wilhin
60 days after Ihe expert's acceptance 01 appointment; or a notiee 01
dissalisfaelion is giverl urlder Clause 32.6; therl in each case, Ihe Dispute shall
be referred lo arbitration in aecordance with Clause 32.9.

(d) It is a condition preceden! lo a Party being entitled lo refer a Dispute lo
arbilration Ihal the procedures referred lo in Clause 32.1(b) first be complied

32.2 Negotiatlon

(a) II a Dispute arises, then a Party may give notíoe to the olher Party requesting
that the Dispule be relerred for resolu!ion by negotialion between the chie!
executive offícers of Servioe Recipíent and Contractor or Iheir nominees (the

(b) A notíce under Clause 32.2(a) shall:

(i) slate Ihal il is a notíce under this Ctause 32.2; and

(ii) inelude or be acoompanied by reasonable particulars 01 the matters
that are the subjecl oflhe Dispute.

(e) The Representatives shall mee! and use reasonable endeavors acting in good
faith lo resolve the Dispule (in whole or in part) within len (10) Business Days
afler the date on which the notiee under Clause 32.2(a) is received (or sueh
later date as the Parties may agree). The joinl decision (il any) of the
Representatives wili be reduced to writing and will be eontractually binding on
the Parties.

32.3 Expert Determination

(a) 1I a Dispute which has been referred lo Ihe Representatives for negotialion
pursuanl lo Clause 32.2 remains unresolved (in whole or in part) afler the
expiration 01 the period lor negotiation referred lo in Clause 32.2(e) and the
( Dispute Is one 01 those referred lo in Clause 32.1 (b)(ii), then either Party may
by giving nolioe lo the olher Pally requesting thal those parts 01 the Disput~

... ~-p/t
EXECUTlON COPY page 101 of 116
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which remaill unresolved be raferred lo an expert lor determination in
accordance with ¡his Clause 32.3.

(b) A notlGe under Clause 32.3(a) shall:

(i) be giverl wilhin ten (10) Business Days after the periad for expiry 01
lhe perlod for negotiation referrad to in Clause 32.2;

(il) slate lhal it is a nonce under this Clause 32.3; and

(jii) irlClude or be accompanied by reasonable particulars 01 Ihose parts 01
Ihe Dispute which remain unresolved,

32.4 Selection 01 Expert

(a) Within ten (10) Business Days after lhe date 01 ¡he notice under Clause 32,3
Servies Recipient and Gontractor shall exchange w¡itten lisis 01 Ihree persons
who, il appoinled, would salisfy lhe requiremenls 01 Ihis Clause 32.4, Irom
whom Ihe expert is lo be chosen in order 01 prelerence.

(b) kly person that appears on bolh lisIs will be appoinled as Ihe expert lo
determine a Dispute alld il more Ihall one person appears on both lists the
person giyen the highest order of priorily by the Party thal gaye Ihe nolice will
be appoinled.

(e) 1I no person appears on bolh lisIs, the Party whieh gaye the noliee under
Clause 32.3 shall procure Ihe Director of Arbitration of Ihe American
Arbitration Associalion lo nominale a person lo ac! as ¡he experto

(d) It is Ihe intention 01 Ihe Partíes thal Ihe expert appointed lo determine a
Dispute will be a person wilh appropriate skills having regard lo Ihe nature 01
Ihe matters in dispute.

(e) Neither party will be entitled lo ehallenge Ihe appointment 01 an expert under
Ihis Clause 32.4 on Ihe basis thal Ihe expert does not salisfy the requirements
01 this Clsuse 32.4.

(1) Service Recipient and Con tractor shallenler inlo an agreement with the expert
on such reasonable lerms as the expert may requíre.

32.5 Rules of Exper! Datermination

The expert determinalion proeess will be administered, and the exper! will be required to act in
accordance with the terms oflhe agreement relerellced in Clause 32.4(1).

32.6 Expert Findlng

(") The determination of the expert shall be in wfiling and will be linal and binding
on Serviee Recipient and Conlractor unless wilhin ten (10) Business Days
alter receipt 01 the determination, a Party gives nolice lo each other Party 01 its(

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dissatisfaction and intention to refer the matter to arbitration pursuan! to this
Clause 32.6.

(b) Upon submission by any Party, the expert may amene! ¡he determinalion to
(i) a clerical mislake,

(íl) sn error from en accidental slip or omission;

(lB) a material miscalculalion 01 figures or a material mistake in Ihe
description 01 any person, thing or manner; or

(iv) a deleel in formo

32.7 Llablllty of Expert

The Partíes agres lha! the expert will no! be Ilable in respee! 01 ¡he expert determination, except
in !he case 01 ¡raud on Ihe part 01 ¡he experto Service Recipient and Contractor agree lo
indemnify lhe expert from and againsl all claims, except in the case ollraud 011 the part 01 the
expert, which may be made against him or her by any person in respeet 01 the expert's
appointmenl lo delellTline the Dispute.

32.8 Costs

Service Recipient and COl1tractor shall bear their OWI1 costs in connec!lon wilh ¡he expert
determination proeeedil1gs and shall pay al1 equal portion olthe cost 01 the experto

32.9 Arbitratiol1

(a) II (i) a Dispute which has been relerred to the Representatives lor negotiation
pursuan! lo Clause 32.2 remains unresolved (in whole or in part) after the
expiration 01 Ihe period lor negoliation and the Dispute is not one 01 those
referred to in Clause 32.1{b); or (ii) in the case 01 a Dispute which is relerred
to expert determinalion, a de!erminatiol1 is not made wilhin sixty (60) days of
the expert's acceptance 01 the appoinlmel1t or a notice 01 dissatislac!ion Is
given under Clause 32.6, then, in each case 01 (i) and (ii), Service Provider or
Conlrac!or may notify Ihe other that il requires the Dispute to be relerrad to

(b) Upon receipt by Ihe olher Party 01 a notice under this Clause 32.91he Dispule
will then be relerrad lo arbitration.

32.10Ident1ty 01 Arbilrator

Any arbilration under Clause 32.9 shall be conducled by a single arbitrator to be agreed
between the Partíes or, lailing such agreement within ten (10) Business Days afler referral 01
Ihe Dispute lo arbitration under Clause 32.9, then by an albilrator lo be nominaled by the
( Secretary-Generel ofthe Puerto Rican Centre for International Commercial Arbitratlon.

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32.11 Rules far Conduct 01 Arbitration

Except as otherwise expressly provided in this Article 32, an arbitration under this Clause 32.11
will be candueted in accordance wilh Ihe rules 01 the American Arbitration Associalion curren! al
the dale 01 raferenes 01 the dispute lo arbitrntion.

32.12Plece 01 Expert Determinatlon or Arbitration

The place 01 any expert determination ar arbitration will be San Juan, Puerto Rico.

32.13Continue te Perform

Notwilhslanding the existence 01 a Dispute, each Party shall continua lo perform its obligalions
under Ihis Agreement.

32.14Summary or Urgent Relief

Nolhing will prejudice the righl 01 a Party lo íns/¡Iute proceedings lo seek urgenl Injunctive,
inlerloculory or declaratory ralief.


(a) Service Recipient and Contractor agree that for Ihe purposes of this
Clause 32.15, Conlractor shatl co-operate fully wilh and reasonably assist
Service Reciplent in Ihe negoliatians and dispute resolutíon procedures
contempla/ed by this Clause 32.15; provided that Contractor's rights or
obligations under Ihis Agreement are direclly and materially affected by lhal
decision or faiture lo comply, Service Recipient shall provide Contractor wilh:

(i) copies of all relevanl documents and informalion in relation lo;

(ii) an opportunily lo atlend, make submissions and parlicipate in (vía
Service Recipient or otherwise): and

(iii) the negotiation and dispute resolutíon procedures contemptaled by
Clause 32. 15(a).

(b) Service Recipient shall nol, wilhout Ihe written consent of Contractor in
circumslances where Contractor's rights or obligalions under Ihis Agreement
are directly and materially affecled by lhe subjecl maller of negotialions or a
dispute referred lo in Ihis Clause 32.15, provided Ihat Contractor promptly
gives Service Recipient response in respect 01 any consent soughl by Service
Recipient, such consent not to be unreasonably wilhheld. agree to a resolution
of those negoliatians or agree lo settle thal dispute.

32.16 Injuncllve Relief

Without limiting any righls 01 Service Recipient lo obtain equitable relief under Law, Contractor
acknowledges and agrees that any breach (or threalened breach) of Clause 2.2(c), Article 5,
Article 6, Clause 19.4, Clause 24.11 and Clause 25.13 by it shall be deemed lo cause
immedlale and Irreparable injury lo Service Reclpient, and In Ihe event af such breach (q, (
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threatened breach), Servias Recipient shall be entitled to seek injunclive relie!, without bond or
other security. The dispute resolution procedures in lhis Article 32 shall no! apply wilh respee!
lo any raques! for such injunclive reliel.

33.1 Comply wlth aH Laws

(a) Contrac!or shall:

(i) in providing Ihe Services, comply with; and

(ii) ensure Iha! ils Subcontraclors, in providing Ihe Services, comply with:
(iii) ensure Ihal ¡he Tolling System complies with,

all applicable Laws, including any change in a Law. 1I is Ihe responsibility 01
Contractor lo familiarize themselves with ¡he conditions of any approvals relevant to
tha Sarvices and wilh any updates ane! amandments to Ihem,

(b) Contractor shall:

(i) oblain and mainlain, and ansure thal its Subconlractors obtain and
mainlain, all Approvals;

(ii) comply wilh, and ensura tha! its Subcontrae!ors in providing the
Services comply wilh, all raquiraments of all relevant Approvals;

(iii) pay all fees, effee! all insurancas, provida any bonds and exacule any
undertaking or agreements required by any relevant Aulhority in
raspee! of any Approval, which Conlractor shall oblain or maintain
(and ensure Iha! its Subcontreclors do likewise in relation lo any
Approvals Ihal they shall obtain or mainlain in connection with
Contractor's obligations);

(Iv) give Servica Recipient copies of:

(A) all documents including notices it gives to Aulhoritias al Ihe
time il submils such documents including notices; and

(B) all documents (including Approvals and olher nolicas) thal
Authoritias issue to il within two (2) Business Days aftar
raceiving such documenls; and

(v) as a condition precedent to Tolling Syslem Complation, ensure Iha! it

(Al obtained all Approvals il ia required lo oblain under this
Agreement wilh respee! lo Ihe Tolling System; and
EXECUTION,,'C',"'--_ _ _ _ _-'''~"O",l05 of 116
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(S) complied wilh, carried out end fulfilled all conditions and
requirements 01 all Approvals.

(e) Contractor shall defand, indemnify and hold hal11lless Sarvics Recipient, end
ils Associates Irom amI against any Loss retaling lo a Claim arising out 01 ar in
any way in connection wilh 11s breach 01 lhis Clause 33.1.

33.2 Changes in Law

(a) Subject lo ¡his Clause 33,2, Contractor will be liable lor the conse{1uences 01,
end will have no Claim against Service Recipienl arising out 01, ar in any way
in connection with, any changas in Law.

(b) II Contractor considers tha! a Discriminatory Changa in Puerto Rico or Federal
Law has occurred, which impacts on the Services or Contractor's other
obligations under this Agreement, Contractor shall give Serviee Recipient a
written notice within a reasonable period, but not exceeding five Business
Days after Contractor first beeame aware of or oughl reasonably to have
become aware of the Piscriminatory Change in Puerto Rico or Federal Law,

(i) the Discriminatory Change in Puerto Rico or Federal Law upon whieh
Contractor's Claim is based; and

(ii) full detalls 01 the impaet 01 the Discriminatory Change In Puerto Rico
or Federal Law on Ihe Services and Contractor's other obligations
under this Agreemenl.

(e) Service Recipient will only pay to Conlraclor i!s reasonable cosls and
expenses directly arising as a resul! of a Discrimina!ory Change in Puerto Rico
or Federal Law il Contraclor and ils Subcontraclors !ake all reasonable sleps
lo mitigate any eosts and expenses incurred by il arising direotly as a result of
a Discriminatory Changa in Puerto Rico or Federallaw.

(d) To the extent any amount is recovered as delay costs undar Clause 14.3 in
respect 01 direct and reasonable oosts in connection with a delay lor a
Discriminatory Change in Puerto Rico or Federallaw, Conlractor agrees Ihat
it may no! recover tha! amount under !his Clause 33.2.

The Con!raetor hereby agrees lo immediately notify Serviee Recipient in Ihe event of a Change
in Control of Ihe Contractor. If Ihere is Change in Control of Conlraclor, Serviee Recipient may
by written notice lo Contractor, lermínate this Agreemenl. In the evant 01 termination, the rights
and liabilities 01 Ihe Parties shall be in accordance with Artlcle 2.4. Any modification 01 the
Contractor shareholding tha! involves only Affllia!es is no! considered as a Change 01 Control.

35.1 Updates ofThird Parly Soltware

EXECUTION coc'c'____
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(a) Contrador shall, until the termination or expiration 01 lhis Agreement, offer
SSlViee Recipient all Updates of Ihe Third Party Software immedialely afler
thay become available. If requested lo do so by SeNiea Recipient, Contractor
shall demonstrate the features ofthe Updales and lhe aflae! 01 Ihe Updales on
lhe performance 01 the Tolling System.

(b) Servíce Recipient mayal ¡Is aplian require Iha! lhe Update be implemented by
Contraclor. Notwilhstanding Ihe foregoing, Service Recipient shall no! be
obliged lo accept any Update which is no! a mandatory or otherwise automatic
Updale provided by the Third Parly Software provider, and, il Service
Recipient does no! accept such Update, Contractor will continue lo lutllll its
obliga!ions in aceordance with the terms of this Agreement. To the extent such
mandatory or otherwise automatic Update implies a diree! or indirect eos! for
Servíce Reeipient, the same shall be borne by Contractor.

(e) Where an Update is implemenled:

(i) Contractor shall deliver and install the Update al no additional charge
to Servies Recipient;

(ji) the Fees shall not be increased;

(iii) thís Agreement Will eontinue to apply in all respecta to the Update;

(iv) Service Recipient shall upon reques!, and at Contractor's expense,
return to Contractor alt copies 01 the original Third Party Software or
part Ihereo! which have been superseded by the Update or otherwise
deal with all such copies in accordance with Contrae!or's direclions;
(v) the Updates, shatl be deemed to 101m part 01 the Tolling System.

AtI communications (including notices, consents, approvals, requests and demands) under or in
connection with this Agreement:

(a) shall be in writing;

(b) shall be addressed as follows (or as otherwise notified by tha! Party lo each
olher Party from time-to-time):

Puerto Rico Highways and Transportation Authority
Roberto Sánchez Vilella GOVernment Center
De Diego Avenue, Stop 22
Santuree, Puerto Rico 00940
Altention: Executive Diree!or
Fax: (787) 727"5456

___'c,~gG 107 of 115
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With a copy (no! amounting lo natice) too
Puerto Rico Highways and Transportation Authority
Roberto Sánchaz Vilella Governmen! Center
De Diego Avenue, Stop 22
5anturce, Puerto Rico 00940
Attentiorl: General Courlsel
Fax: (787) 727-5456


CityView Plaza, Torre 1, Suile 500
Carretera 165 #48, Guaynabo
Fax: +1787-474-5998
Altention: Xavier Serra (Director of Operalions)
Daniel Torres (General Counsel)
Emeil: xavier.serra@metropistas.com

W~h a copy (no! amounting lo nolice) lo:
CityView Plaza, Torre 1, Suite 500
Carretera 165#48, GUaynabo
Fax: +1787-474-5998
Attention: General Counsel


GI1a LLC d/bla Municipal Services Bureau
8325 Tuscany Way
Austin, TX 78754
Fax: (512) 371-9994
Atlention: Jason Schmer
Emall: jason.schmer@9i1acorp_com

Wilh a eopy (no! amounling lo no/ice) lo:
Gila LLC d/b/a Municipal Services Bureau
8325 Tuseany Way
Austin, TX 78754
Fax: (512) 371-9994
Attention: Bruce Cummings
Email: bruce.cummings@gilacorp.com

(e) shall be signed by the Party making the eommunicalion or (on ils behalf) by
the solicitor for, or any atlorney, director, seerelary or authorized agent of, lha!

EXECUTION COPY page 108 of 116
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(d) shall be delivered or postad by prepaid post lo the address, or sel1t by fax lo
the number, aflhe addressee; and

(e) are takan lo be receivad by the addressee:

(i) (in the case 01 prepaid post) on Ihe Ihird Business Day aftar the date
01 posting lo an addres$ within the USA and onlhe fifth Business Day
afiar lhe date 01 postirlg by airmail lo an address outside the USA;

(Ii) (in Ihe case offax) al the local time (in Ihe place 01 receipt ofthat fax),
which than equates lo lhe time Iha! fax Is sen! as showl1 011 the
trensmission rsport produced by lhe machina from which tha! fax is
sen! confirming transmissioll 01 Iha! fax in ¡ls entirety, unless Ihal
local lime is outside Business Hours, when Ihat communication is
laken lo be received al g,OO a.m. on Ihe naxt Business Day; and

(iii) (in Ihe case 01 delivery by hand) on delivery al Ihe address 01 Ihe
addressee as provided in this Article 36, unless Ihal delivary is
outside Business Hours, when Ihal communícation ís taken to ba
received al g.OO a.m. on Ihe next Business Day.

36.1 Notices 01 Clalms

Subject lo any provisions 01 Ihis Agreemenl containing specific notíce requiremallls, Service
Recipiellt will nol be liable upon any Claim by Contractor arising out olor ill any way in
connection wilh any ael or omission 01, or braach 01 a provision 01 this Agreement by, Service
Recipient or any other laet, matter or thing, under, arlsing out 01, or in connectioll wilh Ihe
Sarvices, unless Conlractor gives Service Recipíalll the nolices required by this Clause 36,1.

36.2 Prescribed Notlces

Notices referred lo in Ihis Clause 36.2 are:

(a) a written notíce Irom Contractor in which Conlractor stetes that il intends lo
submil a Claim and Ihe avenl 011 which the Claim will be based and whích
shall be given to Servíce Recipíall! wi!hin lhe earlier 01:

(i) len (10) Business Days alter Iha dala lhal Con!raclor filst became
aware 01 Ihe events on which Ihe Claim is based; or

(ii) Ihirty (30) Business Days alter the lirsl occurrence 01 Ihe evan! on
which tha Clalm is based; and

(b) a written Claim by Conlractor lo ba given lo Serviee Reeipient within ten (10)
Business Days after givillg nolice undar Clause 36.2(a) and which shall

(i) delailad particulars concerning Ihe events on which Ihe Claim is
( based;


Centres d'intérêt liés

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(ii) the legal besis lar Ihe Claim whelher based on a lerm 01 ¡!ls
agreement ar olherwise, and il based on a lerm 01 thls agreement,
clearly identifying lhe specific lerm;

(iii) Ihe faels raliad upan in support 01 the Claim in sufficient detail lo
permit verification; and

(iv) details 01 lhe amount claimed and how it has been calculated.

Any notice relaled lo thls Agreement shall be made in writing and shall be processed by hend or
by registered mail. In adcH"on lo lhe Execullve Director 01 ¡he PRHTA or lIs aulhonzed
representativa, ¡he Contractor shall send a oopy 01 any notice lo the Legal Counsel, as sellorth
in Article 36. Notifications to the PRHTA shall be directed to:

Executive Director
Puerto Rico Highways and Transporta.tion Authority
PO Box42007
San Juan, Puerto Rico, 00940"2007

Notices to the Conlractor shall be directed to:

Gila LLC d/bla Municipal Services Bureau
$325 Tuscany Way
Austln, TX 78754
Fax: (512) 371"9994
Atlention: Jason Schmer
Email: jason.schmer@gilacorp.com

36.3 Contlnulng Events

1I the events upon which tre Claim under Clause 36.2 is based or !he consequences of the
events are conlinuing, Contraclor shall continue to give informalion required by Clause 36.2
every ten (10) Business Days alter the written Claim under Clause 36.2 was sUbmitted, until
afterthe events or consequences have ceased.

This Contrae! is governed by and shall be construed in accordance wilh the laws of the
Commonweallh of Puerto Rico.

A. Each Party irrevocably submits lo the jurisdiction of the Commonwealth 01 Puerto Rico,
Superior Court 01 Firsl Inslance, San Juan Part, regarding any dispute arising or relating lo
Ihis Agreemenl. Should it be deemed necessary, the PRHTA will pursue legal action for
breach 01 contrae! againsl the Contractor, and the Contractor shall reimburse Ihe PRHTA for
all costs, expenses and lees incurred in respect 01 Ihe same,

t. Each Party irrevocably submits to the non-exclusive jurisdiction of Ihe couTts 01
( Puerto Rico. and Ihe courts competent to delermine appeals from Ihose courts. wilh
respect lo any proceedings which may be broughl al any time relating lo Ihis rv'
Aareement. tA

__.5<r;_. ?>Jk
EXECUTION COPY pagc 110 01 116
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ii. Each Party waives any objsction 1I may now or in Ihe fulure have lo Ihe venus 01 any
proceedings, and any claim il may now or in ¡he future have !ha! any proceedings
have been broughl In an inconvenient forum, il thal venue falls within Clause 37(a).

B, This Agreement is governed by and shall be constlued in accordance with Ihe laws 01 the
Commonwealth of Puerto Rico, and a~y cause 01 aclian arising out 01 il shall be filad only in
Ihe courts ollha Commollweallh of Puerto Rico, as stated in Article 37{A).


38.1 No Endorsement

Neither Contractor nor ¡Is Subcontractors, consultants, agents or suppliers shall represent,
direclly or indirectly, lo any person or enlity Ihal Ihe ETeS, the Equipmenl, Syslem Software or
any Work or Servioe provided by il hereunder has been approved or endorsed by Ihe PRHTA.
nor will any 01 Ihem make any announcements 01 release any inlormation cancerning Ihis
Contract or any part hereol to any member oflhe public, press or any officíal body, unless il has
oblained Ihe priorwritlen cansent 01 the PRHTA.

38.2 Prior Approval 01 Publlc Stalements

Conlractor shall obtain Ihe prior written approval 01 Ihe PRHTA belore íl, or any 01 ils
Subcanlractor$, officers, agenls, consullanls, employees or suppliers, ei/her during or alter
expiration or lermination 01 this Agreemenl, makes any stalemenl or issues any malerial lor
publicalion Ihrough any medium 01 cammunicalion bearing on Ihe ETCS or any Work or
SelVices performed or Work or SelVices provided under Ihe Contracto

38,3 Approval 01 Communicalions

Excepl as directed or approved by the PRHTA in Clauses 38.1 and 38.2 herein, neither the
Conlractor nor any 01 ils Subcantractors, suppliels, consullanls or agents nor any of their
respective employees shall initiate contact wilh third parties, including public agencies and Ihe
Federal Governmenl or Ihe Commonweallh 01 Puerto Rico, local governmental agencies or
boards, 01 local politícal leaders or community groups, regarding Ihe ETCS, Ihe Contract, Ihe
Work or the Services, Should any such governmenl agency or group contact Ihe Conlractor or
any 01 ils Subcantractors, suppliers, consullants or agents or any 01 Iheir respective employees,
Ihe Contractor shall promptly notily Ihe PRHTA ollhe delails of such contacto

38.4 Rightsln Published Works

11, wilh the approval 01 Ihe PRHTA, Contractor or any 01 its Subconlractors, employees,
consultanls, agents or suppliers publishes a work(s) regarding any aspect 01 ¡Is or their
performance under this Agreement, or of Ihe resulls and accamplishmenls atlained in such
performance, the PRHTA shall have a royalty-free, non-exclusive and irrevocable license lo
( reproduce, publish or olherwise use and lo aulhorize others lo use the publíshed work.


-~~( Page 111 o/ 116
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39.1 Cooperation and further aots

(a) Contractor shall sign all documents and do all lhings necessary or desirable lo
give effect lo this Agreement and will procure ils Associates lo declare, make
or sign sil documents and do all things necessary or desirable lo give full
afleel lo this Agreement.

(b) In addition lo erld rmtwilhstanding any other obligalion under Ihis Agreement,
Contractor will:

(i) !o the extent practical, cooperare with Service Recipíen! in Ihe pursuit
01 5ervice Recipíant's business objeclives relevan! lo this Agreemenl;

(ii) pursue Bes! Practica in \he delivery 01 Ihe Services pursuant lo this
Agreement; and

(jii) "'$ soon as practicable consull wílh Servíce Reeipient on any maller
arísing whieh may materially affee! Ihe performance by Conlractor of
ils obligalions under Ihis Agreement.

39.2 Servlee Reeipient·s rights

Any express sla!emen! 01 a right of Service ReGipien! under this Agreemenl is wilhou! prejudiee
to any olher righl 01 Service Reeipient expressly slaled in this Agreem!;lnl or arising allaw.

39.3 Survival of Contrae!

(a) Subject lo any provisíon to Ihe conlrary, Ihis Agreemenl shall operate lor ¡he
benelíl 01 and be binding upon lhe Parties and ¡heir successors, permitted
assigns or receivers bul shall no! operate lor the benefit of any olher persons.

(b) The covenanls, eonditions and provisions 01 this Agreement which are capable
of having effect after Ihe expiralion 01 Ihe Contract shall remain in fuI! force
and effect following the lermination or expiralion 01 Ihe Contrae! ler a pelied of
12 months; provided that the covenants, agreemenls and obliga!ions ollhe
Parties sel forth in Article 19 (Conlidenliality), Arlicle 21 (Indemnities), Arliole
32 (Dispute Resolulion). Article 36 (No!ices), Article 37 (Governing Law and
Jurisdiclion) and Article 39 (Miscellaneous) hereof shall survive any suoh
lermination and shall be enforceable hereunder; provided, further, Ihal subjec!
lo Article 21, nothing in Ihls Clause 39.3 shall relieve Conlractor or Service
Recipient 01 any Loss resulting Irom a breach 01 !hís Agreement.

39.4 Waiver

(,) Failure lo exereise or enforce, or a delay in exercising or enforcing, er Ihe
partíal exerolae or enloreemenl 01, a righl, power or remedy provided by Law
or under Ihis Agreemenl by a Party dees nol preolude, or operate as a waiver
01, the exercise or enforcement, or further exercise or enlorcemenl, 01 tha! er
any other right, power er remedy provided by Law er under Ihis Agreement.

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(b) A waiver or cansen! given by a party urlder this Agreement is only effective
and binding on thal Perty il il is given or confirmed in writing by Ihal Perty
(e) No waiver 01 a breach of a term 01 Ihis Agreement operatas as a waiver 01
enolher breach of thal term or 01 a breach 01 any other term 01 Ihis Agreement.

39.5 Severability

1I any provision 01 IMis Agreement Is held invalid, unenforceable or iIIegal lar any reason, ¡his
Agreemen! shall remain otherwise in fuI! force apart from such provision which shall be deemed

39.6 Counterparts

This Contract may be executed in counterparts by Ihe respective Partí es, each of which when
so executed shall be deemed lo be an original and all of whieh laken together shall eonstitule
one and lhe same agreemen!, provided lha! !his Agreemen! sMal1 be of no force and effeet unlil
IMe eounlerparts are exehanged.

39.7 Cumulatlve Remedies

No speei/ie remedy undar ¡his Agreemen! shalllimit a Parly's righ! lo exercise all other remedies
available lo sueh Parly under Law, in equily or under Ihis Agreemenl, and all such remedies
shall be cumulative.
39.8 No Agency

Exeepl as expressly parmilted or eontemplated by Ihis Agreemenl, Contraetor will no! in
conneetion with Ihe Serviees or o!herwise direetly or indireetly hold out or permit lo be held out
lo any person any slatemanl, act, agreemenl, ma!ler or Ihing indicaling Ihal Services are being
earried on or managed or supervisad by Serviee Reeipien! nor may Con!raetor ael as or
reprasen! ilsell lo be !he servan! or agenl of Servíee Reeipien!.

39.9 lndemnilies

(a) Each indemnily in lhis Agreement is a continuing obligalion, separale and
independenl fmm Ihe other obligalions of Ihe partías, and survivas lerminalion,
completion or expiralion 01 Ihis Agreemenl.

(b) 11 is nol necessary for a Party lo ineur expense or lo make any payment before
enforcing a righl of indemnity eonlerred by this Agreemenl.

(e) A Parly shall pay on demand any amounl it shell pey undar an indemnily in
this Agreement.

39,10Time is of the Essenee

Time is 01 lhe essenee in relalion lo Ihe performance 01 Conlractor's obligations under ¡his

EXECUTlON COPY ____C'C""":',,113 of 116


39.11 Consents, Approvals end Requ6sts

Except as specifically se! forth in IMis Agreement, all consents, acceptances amI approvals lo be
given by either Party under Ihis Agreement shall nol be unreasonably withheld or delayed and
each Perty shall make only reasonable requests under this Agreement.

39.12 No Co-Employment

Contraclor agrees and acknowledges, lar jlsel! alld lor Ihe Personnel, Ihal:

(a) lhe Personnel shall no! be entilled lo any benefits provided lo employees 01
Service Recipíent or ils Affiliates, whether consisting of participation in an
amplayes reliremen!, pensiono $upplemental compensation, defined
contribulion or similar plan; workers' eompansalion; disability or olher similar
benalils; unemploymanl or other similar insurance or othelWisa. Conlraetor
shall ba responsible for providing all Personnel with all sueh bena/ils as may
be requirad by Law or by Iha lerms of any amployee relirement, pension,
supplemenlal compensation, de/ine'd eontribution or similar plan in or lo which
Conlractor or any Personnel participales or conlributes;

(b) Serviee Recipienl shall nol be respollsible lor, and Conlractor shall be
exclusively responsible for, making paymanl 01 waaes, salary or bonus or
other amounls lo Ihe members 01 Ihe Personnel, and lor wilhholding Irom all
such amounts and making payments to the appropriate Authorilies lor any and
all stalutory withholdings and other amounts in conneclion with any and all
governmenlal laxes or fees;

(e) Service Recipienl shall lurther nol be responsible lar, and Conlractor shall be
exclusively responsible for, any wilhholdings Irom paymen!s lo Ihe Personnel
wilh respect lo payments lo any union, club or other organizalion of or lo
which Conlractor or any Personnel is a member or may be subject or any
employee retiremenl, pension, supplemenlal eompensalion, defined
conlribulion or similar plan in or lo which either Conlraclor or any member 01
Ihe Personnel participates or conlribules; and

(d) Conlraelor acknowledges and agrees tha! Service Recipienl shall have no
responsibility for verilying the work authorizalion slatus of any 01 Ihe members
01 Ihe Personnel.

39,13lnvoice Certlflcatlon

AII invoices submitted by !he Conlractor shall conlain Ihe following certiflcation:

('l "Under penalty of absoluta nullily, I hereby certify Iha! none of the employees
01 Ihe Puerto Rico Highways and Transporlation Authorily are part or have any
inlerest in the pro/ils or benefils oblained Irom Ihe conlrae! upon which Ihis
invoice is based on, or il Ihey have part or any inleresl in Ihe profits or benefils
110m this contrae!, a dispensation musl have been previously approved_ The
only consideration for submitting the goods ane! serviees objecl 01 Ihis contract
has been the payment agreed upon with Ihe Puerto Rico Highways and .Al
Transportation Aulhorily's aulhorized representaltve. The amount in tMis t \ '{

EXECUTION cocec'_____ ,5~1~ ~
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invoice is true and COlfect and al! lhe servic9s have been rendered arld no
payment has been received."

(b) The PRHTA will no! pay ¡he Contractor for any invoice lha! does rlO! contain
the aforemenlioned csrtification.

39.14Corporatlon Duly AUlhorized to do Business in Puerto Rico

The Contractor certifies ¡ha! il is duly organized and exis~'ng validly as a limited liabilily company
under Ihe laws of the State 01 Texas, with full power and authority lo peñorm al! activities
undertaken by il. The Contractor owns, possesses or has obtained alllicenses, permits, orders
and olher governmental aulhorizations necessary lo conduct business in the Commonwealth of
Puerto Rico as it Is currenlly conducted. The Contractor certilles thal the transactions made in
this Agreemenl are within ils powers and have been duly authorized by corporate resolution to
that effee!.

39.15Tax Obligatlons

The Contractor certifies and warrants that at Ihe time 01 the execution of this Agreement he has
lullilled his tax obligalions lor the past live (5) years prior lo this conlract, including ¡he filing 01
Income Tax Returns and Sales and Use Tax lor Ihe past sixly (60) taxable periods (months) and
does nol have any current debt wilh ¡he Commonwealth 01 Puerto Rico, relating Income Tax,
Sales and Use lax, real property, personal property or excise laxes, or otherwise has a
payment plan in place and is currently complying wilh ils lerms, conlributlons lor unemployment
insurance, lemporary disabilily and drivers' social securily taxes requirea by the Departmenl 01
Labor and Human Resources 01 Puerto Rico or child support to ASUME (by its Spanlsh
acronyms), as applicable, as delined in the Administrativa Bulletin No. DE- 1991-24 issued by
Ihe Governor 01 tha Commonwealth 01 Puerto Rico on Juna 18, 1991, as amended, and Circular
Latter 1300-25·14 issuea by tha Departmenl 01 Treasury. [Act 237-2004J

39.16Elderly Support

The Contraclor certilles Ihat il he has Ihe obtigation lo pay supporl lor the elderly, he is currently
complying with il or has a paymen! plan lor said purpose and has not laited lo comply with
orders, subpoenas, requesls, resolulions, court judgments or the administrator 01 the
Administration lor Child Support, as required by Act 168 01 August 12, 2000.

39.17Law No. 237-2004

Pursuant to the provisions 01 Aa! No_ 237 01 August 31, 2004, as amended, the lollowing
documents are made part ollhis Agreement:

• Certilication 01 No Debl, issued by !he Department 01 Treasury (Form 6096);
• Certilication 01 Tax Filing lor the pasl live (5) years, issued by the Departmenl 01
Treasury (Form 6088);
• Certillcatlon 01 Tax Filing lor Sales and Use ("IVU") lor the pas! sixty (60) taxable periods
(ModeI2942); tP'Y
]1! e
~XECUTION COPY Page 115 of 116


• Certification 01 Debt for Sales and Use Tax C'IVU") (ModeI2927);

• Certification 01 Filing Personal Propelty Tax;

• Certificatioll 01 Debt for AII Concepts issued by the Center for MUrlicipal Revenue
Colleclions ("CRIM", by ils Spanish acronym);

• Certiflcation 01 Regislration as an Employer and 01 Debt regarding Unemployment and
Disability Insurance, issued by Ihe Departmellt 01 Labor al1d Human Resources;

• Certification 01 Registration as an Employer and 01 Debt regarding Drivers' Social

• Certificate 01 Good Standing [Corporations];

• Certificate 01 Existence or Certificate 01 Al.lthorization lo do Business ir! Puerto Rico.

• Certlficate 01 Incorporatiort [Corporatiorts];

• Corporate Resolution authorizirtg Ihe person signing this Agreemellt on behall of the

• Certilicalioll !hat the Conlractor has no child support debt as issued by the
Admillistration for Child Support or Certified Statemell! [individuals] (ASUME, by its
Spanish acronym);

• Certificalioll 01 Compllanee Status [Corporations].

• Subcontractors, professional or lechnical personnel used by the Contractor with
prior writtell authorization from Ihe PRHTA shall comply with the obligations 01
this Agreement. To be considered a subcontractor twellty-five pereent (25%) or
more of Iheir lime shall be devoted to !hese services. The Contractor shall be
responsible lo require such subcontractors lo provide and certify the required
information stated above and nolifY Ihe PRHTA about (his maller.

• The Contraotor expressly acknowledges Ihal the certificatiolls listed above are
essential to the validity 01 this Agreement and il incorrect in whole or in part, this
will be suffioient cause lar (he PRHTA to resoind this Agreemen! immediately
and the Con!raotor shall repay the PRHTA all monies paid.
o The Contractor acknowledges tha! all informalion or dala provided. obtained and
produced as part of the services under this contract shall be considered
conlidential and, as such, disclosure wilhout Ihe written cansent of Ihe PRHTA is
strictly prohibiled.

39.18Professional Ethics

The Contractor is aware of the ethical s!andards of his profession, aSBuming responsibility for
his actions. The Contractor agrees lo provide competen! and diligent services, pursuant to t~

. .~kC
EXECUTlON COPY Page 116 o/ 116


Codes 01 Ethics govarning his profession and making his bes! efforl in arder lo obtain fair and
reasonable solutions lar !he PRHTA TMe Contractor 5hall also immedialely noli!y Ihe PRHTA 01
eny situation 01 importanes in retalían lo Ihe issues herein referred lo and 5hall consult all)'
importan! decision related lo Ihem. The Contractor 8hall nol incur any obligation regarding
tr~msactions or payment agreements wilhout Ihe express written approval ollhe PRHTA and i6
subject lo Ihe approvel 01 Ihe Board 01 Directors il required, depending on Ihe amount in
queslion, [Act 237-2004]

39.19Government Ethlcs, Crimas against the Treasury and Others

A. The PARTIES slale that no officer or employee 01 Iha PRHTA or any member 01 their
household has a dirad or indirecl pecllniary interest in the prolits or benelits 01 Ihis
Agreement. [AcI237-2004]

B. The PRHTA certilies Ihal none 01 ils officers or employees who have the aUlhorily lo
approve or aulhorize agreements, or any member 01 their household, have or have had
dming Iha pasl lour (4) yaars prior to taking offica, dired or indirect peeuniary Interes! wilh
the Contractor. [Acl 237-2004J

C. The Conlractor cartilies Ihal nailher he nor any 01 his shareholders. partners, officers,
principals, employees, subsidiaries or parenl cempanies:

1. Have been convicted or probabla cause lor arres! has baen lound againsl tham lor any
ol/ense againsl the treasury, lailh and public service, against the governmenl or
Involving public funds or property, al Ihe federal or stale leval. [Act 458-2000, Act 84-

ii. Have ever been convicted 01 offenses againsl public integrily, as definad in Ihe Penal
Code or misapproprialion 01 public lunds and has nOI been convicted 01 a crime in the
courts 01 Ihe Commonweallh 01 Puerto Rico, in lederal courts or Ihe courls 01 any
other jurisdiction 01 the Uni!ed States or any olher country. II convidad 01 any Ihe
above offenses, Ihe contract will be terminated. [Act 237-2004, Act 458-2000]

iii. Any family member who is a publie servant parlicipating or having access lo Ihe
decision makil'lg process to detarmine the nead lor serviees covered in Ihis
Agreement, or in the process 01 negotialion and axeculion Ihereol does nol have a
specillc interest in any case or matter Ihal mal' create a cOl'lllict 01 interes! er 01 publie
poliey while rendering services agreed upon under this Agreemenl and shall nol
accep! any contract wilh Ihe PRHTA ¡hat mal' eause a confiict 01 inlerest or publie
poliey. IAet 458-2000, Act 84-2002]

iv. No amployee, officer, director or shareholder 01 Ihe Contractor. whalever the casa
mal' be, has served as a public officer or employee related to Ihe specilie servicas lo
be provided under this Agreement, within two (2) years preceding tha signature
thereo!. IAe! 237-2004]

D. The Contractor certilies that upon execulion 01 this Agreement he received a copy and
\ agreed to abide by Ihe provisions 01 Act No. 84 01 June 18, 2002, which establishes Ihe
Code 01 Ethlcs lor Contractors, Suppliars 01 Goods and Services and Economlc IncentIVe ,.J!
Seekers 01 Ihe Executive AgenCies 01 the Commonwealth 01 Puerto RICO, Ihe Puerto Ric0t}!. \

~'8kt age 117 01 116
( (


Government Ethic5 Act and signad Ihe Certification 01 No Conflict 01 Inlerast, as required by
Circular Letlsr No. 2002"05 01 Ihe Puerto Rico Government Ethics Office.

E. The Contractor cartilias tha! he does no! rseeiva compensation as a regular employee 01
any other agency, public corporation, municipalily ar government agency, and has no!
signad any other contrae! wilh another agency, public corporation, municipal'ty or
government ager\Cy 01 Ihe Commonwealth 01 Puerto Rico, except as permitted by law. He
also carlinas ¡ha! he is no! an ad honorom afficíal of any agency, public Gorporation or
governmental agency 01 ¡he Commonwealth 01 Puerto Rico. (This clause is used when
contrading wilh an individual) [Ae! 237-2004]

F. The Contrae!or cerlilies Ihat he has obtained any exemption required by law Iram any
government entilies authorized to gran! such dispensations, end thet copies ollhese have
been given lo !he PRHTA lo be made part 01 this Agreemenfs lile. [Act 237-2004]

G. The Contractor acknowledges his duty to inlorm the PRHTA continuously during the term 01
lhis Agreement 01 any situation relating to what is provided in Ihis clause. This obligalion is
conllnuous in nature during all slages 01 the procurement and execu\ion 01 this Agreement.
[Act 458-2000, Ac! 84-2002]

H. The Contractor certllies and warranls lor himsell and on behal! 01 his shareholders and
ollicera ¡ha! he is no! under inves!igation or civil or criminal proceedings lor acts itwolving
crimes against Ihe treasury, laith and public service. The Contraclor recognizes his
obliga!ion to inlorm lhe PRHTA during the conlracling stage and during lhe term of Ihis
Agreement 01 any civil or criminal itwestigation or process lhal is related lo public lunds,
testimonies, public lundions and public property, al lhe lederal or slate level.

l. II the Conlractor or any 01 its shareholdera or officers are guilty 01 crimes as defined by Act
No. 458-2000. as amanded, this Agreement shall be terminated immediately and Ihe
PRHTA shall be enlitted to demand repayment made undar this Agreement directly affec\ed
by the commission 01 Ihe crima. The Conlractor shall submit an affidavil In aacordanee with
Ihe provisions 01 Aat No. 428 01 September 22, 2004. [AeI458-2000]

J. The Conlraelor certifies that he has nol engaaed in dishonorable conduel, thal he is no!
addieted lo the habitual and exeessiva use of conlrolled substences andfor alcohol; he has
not been convided 01 a felony or misdamaanor, or any offense involving moral turpitude or
has been removad lrom public service. Having incurred any such disabling causes, the
Contraelor shall submit lhe Decision issuad by (Ihe) director 01 the Oflice 01 Human
Resources of the Commonwealth 01 Puerto Rico (OCALARH, by ils Spanish acronyms)
which certilies his habililation, a copy 01 whieh will be made part ollhis Agreement's lila. The
Contractor expressly recognizes (hal this is en essen!ial condition 01 this Agreement and il
Iha inlormation provided is nol accurate, the PRHTA will hava sufficlent cause lo rescind !his
Agraement and the Contractor will have lo reimburse the PRHTA any monies received lor
sarvices rendered under this Agreement. 1I during the term 01 this Agreement Ihe Contrac!or
incurs in any ollhe dissbling causes, Ihe PRHTA may immadialely terminale this Agreement
withou! nolice.

\ K. The Conlractor and his aulhorized representatives shall conduet thamsalves professionally
and respeellully toward officers or employaas 01 Ihe PRHTA al all times. [AeI 84-2002] ~

rage 118 of 116
- - -
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39.20AdverS6 lnterests [Act 84-2002, Act 237-2004]

A. The Contrac!or acknowledges Ihal in rendering his professional servicas, he has lo be
complelely loyal lo the PRHTA, includillfl no! hevirlQ adversa interesls towerd Ihe
Gommorlwealth 01 Puerto Rico. These adversa interests include representing cllents who
have or may have confticting irlterests with Ihe Commonwealth of Puerto Rico. This duty
also includes a continuing obligation lo disclose lo lhe PRHTA all Ihe circumstances 01 his
relationships wilh customers and third partías, as well as any tnleres! thal may in/luenca Ihe
PRHTA when executing this Agreement or during ¡ls termo

B. The Contraetor makes expliei! recognihon 01 his duty nol lo accept prolessional or personal
interes! in any matter lo resul! in confliet 01 interest wilh Ihe PRHTA. In addition, Ihe
Contraclor certifies that, al present, nei!her he nor any of its shareholders, partners, officers,
principals, employees, subsidiaries or parenl companies, have prolessional or personal
interes! in any maller that results in conflie! 01 inlerest with Ihe PRHTA.

C. The Contraclor has conflicling interests when, on behall 01 a client, it is his du!y lo promote
what he mus! oppose to in complying wilh his obligations to any past, curren! or potential
ciients. The Conlraclor a1so represents conflicting inleres!s wherr his behavior is described
as sueh in lhe recognized standards of elhics 01 his prolession, or the laws and regulations
01 the Commonwealth 01 Puerto Rico. In contracts with partnerships or firms. a violation 01
this prohibition will occur if any 01 his shareholders. directors, partners or employees ineurs
in the conduel describecl herein. The Contraclor must avoid even the appearance 01 the
exislenee of conflicting interests.

D. The Con!raclor recognires the power of supervision 01 the Execulive Director 01 lhe PRHTA
in compllance with lhe provisions contained herein. 1I the Executive Director 01 lhe PRHTA
understands tha! an adverse inlerest exists or has arisen Wi!h the Contractor, the Contraetor
will be notilied in writing of the findings and the Au!horily's intention to lenninale the
Contraet within thirty (30) days. Within this term, the Contraetor may request a meeting with
the Execulive Director of the PRHTA to make his case regarding the determination of
conflie!. The ExecuUve Director of the PRHTA will gran! said meeting. Upon lailure to
request the meeting in the aforementioned term 01 thirty (30) days, or lailure to resolve
salisfactorily the dispute during the meeting granted, this Agreement shall be deemed

39.21 Loss or Damage 01 Material

The Contractor shall be responsible lor the 105S or damage of material oWfled by the PRHTA
under his custody and responsibility, pursuant to the Civil Code 01 Puerto Rico.

39.22Hold Harmless

A. The Contractor shall release, indemnify and hold harmless the PRHTA, its employees and
officers Irom all claim5, charges andlor legal acliofl5 due lo any negligenl or laulty ael or
omission made by the Con!ractor, its agents or employees in providing the conlracted
\ services under this contrae!.

B. The Contractor shall also release. indemnily and hold harmless Ihe PRHTA 01 any penaltyui

. .&-J3.fl,C
EXECUTION COPY Page 119 af 116
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punishmellt ar damages causad by Ihe faull ar negligence 01 the Conlractor in any court,
administrativa body ar quasi-judicial entity In such cases, Ihe Contractor shall dafand,
ir¡demnify and hold harmless lhe PRHTA, ¡Is affiliates, agents, officers, employees,
shareholders and authonzed representativas from any claims liabilities, casls, expenses,
fines, jlldgmenls, damages, including attorneys' fees when il has been proven Iha! ¡he
Contractor has engaged in negligence, inactioil, omission or misrepresentahon in ¡he
defensa 01 Ihe PRHTA, as well as violations 01 law by the Contractor, claims product ollhe
faull ar rlegligence ollhe Contractor in the procurement; unauthorized obligations incurred
on behall 01 the PRHTA made by the Contrae!or, its agenls, employees or third partíes hired
by the Contractor.

C. The Contrae!or shall also release, irldemnily and hold harmless the PRHTA for expenses
incurred (including damages, cosls and atlorneys' fees) in claims andlor legal proceedings
filed agains! the PRHTA related to libe!. delamation, slander, invasion 01 right 01 privacy,
piracy, plagiarism, unfair competilíon, misappropriation 01 ideas, violation 01 copyright and
related claims arising out 01 tha lault or negligence 01 the Conlractor,

39.23General Provislons

A The lailure 01 either party to objecl or take correctiva aclion against the olher party, lor
Conduct in violation 01 any 01 Ihe tenns 01 lhis Agreement, shall no! be deemed a walver 01
said lerms or any other.

S, The Conlraclor shall not assign any rights or delegale arly obliga!ions included here wilhou!
prior written consent of the PRHTA. However, upon prior written consent 01 the PRHTA, Ihe
Contrae!or may assigrl the amounls owed by tha PRHTA urlder Ihis Agreement lo a financial
ínsUtution, as provided by Act No. 16 01 May 1. 1967 (3 L.P.RA sections 901 and 902) as
security lar paymenl 01 arly presen! or future debt Ihat the Con!ractor has or may have with
that financial inslitution.

C. This COrltract conslilu!es the entire agreement between Ihe parties with respee! lo the
services lo be provided under il. Any amendmen! lo this contrae! mus! be made in wriling
signed by both parties during the !erm 01 the contraet pursuant lo Ihe PRHTA's needs, and
subjee! lo Ihe availability 01 lunds for the implementation of Ihe amendmenl.

O. This Agreemenl Supersedes any olher existing expressed or implied agreements between
the Contrae!or and the PRHTA and il may not be altered, modilied, amended or tenninated,
excapt by written agreement

E. This Agreemenl shall prevail ovar any dispute arising out 01 inlerpretation between this and
any lelter and/ar propasal submitled by Ihe Contractor.

F. The headings used in this Agreement are lar relerence purposes only and do nat constitute
an integral par! thereol.

G, II is slipulated that the lerms arld canditions of this Agreement are separate and apar! Irom
each other, and il ane or more dauses ara declared invalid by a compelerlt court, il does not
\ affee! Ihe validity 01 the remainder 01 this Agreemerll, which will continue in full lorce and
eflee!. ~

EXECUTION C.,',','_ _ _ __ _ _ _,"_','C120 01 116
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H. The Contrae/or shall use and shall give preference lo those items exlractect, produced,
assernbled or packaged in Puerto Rico or distributed by agents established herein, provided
lhat Ihey have lo mee! Ihe spacifica/ions, lelms and conditions sel forth in Ihe staleman! 01
auction or purchase order and ¡Is price, afiar applying the appropriate investment
parameters, is the lowest [Ae! 14-2004]

1. The Contractor certifies tha! il has no curren! conlrac!s with other agencies, and tha! il il did,
they are compatible with the servicas harein contraeted.

J. The Parties agree llO! lo disclose or reveal either Party's social security number usad lo
iderttify Ihe olher party lar olher purposes no! permitted by law artd make il illegible, illhey
come lo any copy 01 lhis contrae!. [Ae! 243 - 2006J

39,24Reeord in the Omee 01 the Complroller

No lradeoffs eontained in lhis Aareemertl may be required unlil il is regislered in Ihe Ofliee of
the Complroller 01 Ihe Commonweallh 01 PUerto Rico, pursuartt lo Ihe provisions 01 Act No, 18
01 Oclober 30, 1975, as amended.

Remainder of page in1entionally left blank; signatura page follows.

_---::- 8M
Pago 121 01 116
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IN WITNESS WHEREOF, lhe authorized representatives of the Partías haya axecuted this
Contrae! as ofthe Effeclive Date.


title: ",d'"

~~~e: &~~~m
tille: CdIC-E "",(§?!.!DIIS O~~
Social S~curity Nunber:


EXECUTION COPY ?age 122 of 116

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