The project is a continuation of an on-going effort to develop a comprehensive model of ionosphere - magnetosphere coupling. The emphasis in this phase of the project will be on coupling the horizontal convective motion with field-aligned transport processes. An important aspect of the work is the inclusion of both magnetospheric drivers (field-aligned currents, hot plasma, field-aligned potential drops, and kinetic instabilities) and ionospheric drivers (varying boundary conditions at low altitudes). The overall goal is to elucidate the interplay between horizontal convection and the microphysics associated with field-aligned transport for different solar cycle, seasonal, and magnetic activity conditions.