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5.7. NOTIFICATION OF DELAY. Contractor shall provide prompt notice to Participant and Enterprise <br /> Services for any delay in the manufacturing process that will affect the expected delivery date. <br /> Contractor will provide notice of the delay within fourteen (14)days of discovery of the potential <br /> delay. This notice of delay must include a reasonable expectation of when the delay will be <br /> resolved, the reason for the delay, whether the delay will cause the delivery to exceed the <br /> delivery date, and any other applicable information regarding the delay. <br /> ■ Participant shall provide Contractor with notice of acceptance of the reasonable delay or <br /> notice that the delay is determined to be non-excusable within seven (7) days of receipt <br /> of the notice of delay. <br /> ■ If there is a dispute between Contractor and Participant as to whether the delay is <br /> reasonable, Contractor may appeal Participant's decision to Enterprise Services within <br /> seven (7)days of receipt of the notice that the delay is non-excusable. Enterprise Services <br /> will review the provided information and make a final determination as to whether the <br /> delay is reasonable or non-excusable. If a dispute remains after this procedure, parties <br /> shall follow the dispute resolution process of Section 16. <br /> ■ Contractor shall promptly comply with any request from Enterprise Services or Participant <br /> for additional information in making the delay determination. A request for more <br /> information from Enterprise Services or Participant tolls the time for required response <br /> until the time that Contractor responds to the request for more information. <br /> ■ Reasonable delay is a delay for which the Contractor is not responsible. A reasonable <br /> delay must arise from unforeseeable causes, be beyond the control of Contractor,and be <br /> without the fault of the Contractor. A reasonable delay will extend the delivery date by <br /> the agreed upon length of the delay. <br /> ■ Non-excusable delay is a delay for which Contractor is wholly or partially responsible. A <br /> non-excusable delay is a delay that arises from a foreseeable cause, is within the control <br /> of Contractor, or is due to the fault of Contractor. A non-excusable delay will not extend <br /> the agreed upon delivery date. <br /> 5.8. DELAY DAMAGES. Participant will be damaged by any failure on the part of Contractor to deliver <br /> the buses within the time specified in delivery date.The amount of damages for delay of beyond <br /> the delivery date is difficult if not impossible to ascertain. The amount of such damages <br /> Contractor shall pay to Participant is fixed at the amount of$250.00 per day for each bus not <br /> delivered in substantially good condition as inspected by the Participant. Participant may elect <br /> to deduct the amount of the damages from the amount due to Contractor under the Purchase <br /> Order or may notify Contractor of the amount due based on the delay. If Participant requires <br /> Contractor to pay the delay damages, Contractor shall pay the entire amount within thirty (30) <br /> days after receipt of a written demand by Participant.The payment of damages will be in lieu of <br /> any damages for any loss of profit, loss of revenue, loss of use, or for any other direct, indirect, <br /> special or consequential losses or damages of any kind that may be suffered by Participant arising <br /> at any time from the failure of Contractor to fulfill the delivery obligations in a timely manner. <br /> 5.9. INSPECTION AND ACCEPTANCE OF TRANSIT BUSES. Transit Buses purchased under this Master Contract <br /> are subject to Participant's reasonable inspection, testing, and approval at Participant's <br /> destination for a period of fourteen (14) days from the date that the Transit Buses are received <br /> at the place of delivery. Participant reserves the right to reject and refuse acceptance of Transit <br /> Buses that are not in accordance with this Master Contract and the Participant's Purchase Order <br /> during this inspection period. Representatives of Contractor may witness acceptance inspections <br /> MASTER CONTRACT No.06719-01 <br /> PAGE 10 <br />