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i. <br />any third party with respect to its rights and responsibilities under this Agreement without the <br />prior written concurrence of the Department. Further, the Contractor shall incorporate the <br />provisions of this Agreement into any lease arrangement and shall not enter into any lease <br />arrangement without the prior concurrence of the Department. Any lease approved by the <br />Department shall be subject to the conditions or limitations governing the lease as set forth by <br />the FTA and the Department. If the Contractor leases any Project asset to another party, the <br />Contractor agrees to retain ownership of the leased asset, and assure that the Lessee will use <br />the Project asset to provide mass transportation service, either through a "Lease and <br />Supervisory Agreement" between the Contractor and Lessee, or another similar document. The <br />Contractor agrees to provide a copy of any relevant documents. <br />(1) Significant Participation by a Third Party Contractor. Although the <br />Contractor may enter into a third party contract, after obtaining approval from the Department, in <br />which the third party contractor agrees to provide property or services in support of the Project, <br />or even carry out Project activities normally pertormed by the Contractor (such as in a turnkey <br />contract), the Contractor agrees that it, rather than the third party contractor, is ultimately <br />responsible to the Department for compliance with all applicable Federal and State laws, <br />regulations, and directives, except to the extent that the Department determines otherwise in <br />writing. <br />(2) Significant Participation by a Subcontractor. Although the Contractor <br />may delegate any or almost. all Project responsibilities to one or more subcontractors, the <br />Contractor agrees that it, rather than the subcontractor, is ultimately responsible for compliance <br />with all applicable Federal and State laws, regulations, and directives, except to the extent that <br />the Department determines otherwise in writing. <br />h. Contractor's Responsibility to Extend Federal and State Requirements to <br />Other Entities. <br />07-SC-056 <br />Orange County <br />Page 5 of 59 <br />