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1. Designated Agent Of The STATE. The CWC8, which includes its agents and employees, is hereby designated as the agent of the STATE for the purpose of this contract. 2. Contract Is Not Assignable. This contract is not assignable by the BORROWER except with the prior written approval of the STATE. 3. Contract Relationship. The parties to this contract intend that the relationship between them contemplated by this contract is that of lender-borrower, not employer-employee. No agent, employee, or servant of the BORROWER shall be, or shall be deemed to be, an employee, agent, or servant of the STATE. The BORROWER shall be solely and entirely responsible for its acts and the act~ of its agents, employees, servants, engineering firms, construction firms, and subcontractors during the performance of this contract. 4. Complete Integration Of All Understandings. This agreement is intended as the complete integration of all understandings between the parties. No prior or contemporaneous addition, deletion, or other amendment hereto shall have any force or effect whatsoever unless embodied herein in writing. No subsequent novation, renewal, addition, deletion, or other amendment hereto shall have any force or effect unless embodied in a written contract executed and approved pursuant to STATE fiscal rules, unless expressly provided for herein. 5. In Event Of A Conflict. In the event of conflict between the terms of this contract and conditions as set forth in any of the appendices, the provisions of this contract shall control. 6. Eligible Expenses. PROJECT costs eligible for financing by the STATE shall be limited to the cost of: a. Preparing final designs and specifications for the PROJECT. b. Preparing bid and construction contract documents. c, Preparing environmental assessment or environmental impact statements, and otherwise complying with the Federal National Environmental Policy Act. d. Complying with all federal, state, and local regulatory requirements, including the obtaining of all required permits. e. Fish and wildlife mitigation measures required by federal, state, or local laws and regulations. f. Actual construction as called for in the design documents and in change orders approved by the STATE, the BORROWER, the CONSULTANT and the CONSTRUCTION FIRM. g. Engineering services for construction management, including design and construction management for STATE-approved change orders. h. Legal services for reviewing engineering services contracts, reviewing this contract, reviewing construction contract documents, and for complying with all federal, state, and local regulatory requirements. Legal services must be approved by the STATE in writing and in advance to be eligible for financing by the STATE. Ryan Gulch Reservoir Company Page 9 of 13 Loan Contract