49.109-2 Reservations.
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(a) The TCO shall-
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(1) Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;
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(2) Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;
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(3) Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;
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(4) Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and
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(5) At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.
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(b) A recommended format for settlement of reservations appears in 49.603-9.