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configurations shall not require special identification.Articles rejected as unsuitable or scrap <br /> shall be plainly marked and controlled to prevent installation on the bus. Articles that <br /> become obsolete as a result of engineering changes or other actions shall be controlled to <br /> prevent unauthorized assembly or installation. Unusable articles shall be isolated and then <br /> scrapped. Discrepancies noted by the Contractor or resident inspectors during assembly <br /> shall be entered by the inspection personnel on a record that accompanies the major <br /> component, subassembly, assembly or bus from start of assembly through final inspection. <br /> Actions shall be taken to correct discrepancies or deficiencies in the manufacturing <br /> processes, procedures or other conditions that cause articles to be in nonconformity with <br /> the requirements of the Contract specifications. The inspection personnel shall verify the <br /> corrective actions and mark the discrepancy record. If discrepancies cannot be corrected by <br /> replacing the nonconforming materials, then the Agency shall approve the modification, <br /> repair or method of correction to the extent that the Contract specifications are affected. <br /> ■ Quality assurance audits:The quality assurance organization shall establish and maintain <br /> a quality control audit program. Records of this program shall be subject to review by the <br /> Agency. <br /> 14. CLAIMS. <br /> 14.1. ASSUMPTION OF RISKS; CLAIMS BETWEEN THE PARTIES. Contractor assumes Sole responsibility and all <br /> risks of personal injury or property damage to itself and its employees, and agents in connection <br /> with its operations under this Master Contract. Neither Enterprise Services nor any Participant <br /> has made any representations regarding any factor affecting Contractor's risks. Contractor shall <br /> pay for all damage to any Participant's property resulting directly or indirectly from its acts or <br /> omissions under this Master Contract. <br /> 14.2. THIRD-PARTY CLAIMS; INDEMNITY. To the fullest extent permitted by law, Contractor shall defend, <br /> indemnify, and hold harmless Enterprise Services and any Participant and their employees and <br /> agents from and against all claims,demands,judgments,assessments,damages, penalties,fines, <br /> costs, liabilities or losses including, without limitation, sums paid in settlement of claims, <br /> attorneys' fees, consultant fees, and expert fees (collectively "claims") arising from any act or <br /> omission of Contractor or its successors,agents, and subcontractors under this Master Contract, <br /> except claims caused solely by Enterprise Services or any Participants' negligence. Contractor <br /> shall take all steps needed to keep Participant's property free of liens arising from Contractor's <br /> activities, and promptly obtain or bond the release of any such liens that may be filed. <br /> 15. DISPUTE RESOLUTION. <br /> 15.1. DISPUTE PROCEDURE. The parties shall cooperate to resolve any dispute pertaining to this Master <br /> Contract efficiently, as timely as practicable, and at the lowest possible level with authority to <br /> resolve such dispute. If, however,a dispute persists and cannot be resolved, it may be escalated <br /> within each organization. In such situation, upon notice by either party, each party, within five <br /> (5) business days shall reduce its description of the dispute to writing and deliver it to the other <br /> party. The receiving party then shall have three (3) business days to review and respond in <br /> writing. In the event that the parties cannot then agree on a resolution of the dispute,the parties <br /> shall schedule a conference between the respective senior manager of each organization to <br /> attempt to resolve the dispute. In the event the parties cannot agree,either party may resort to <br /> court to resolve the dispute. <br /> MASTER CONTRACT N0.06719-01 <br /> PAGE 25 <br />