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<br />records, and financial records. These inspections are solely for the purpose of verifying
<br />compliance with the terms and conditions of this contract and shall not be construed nor
<br />interpreted as an approval of the actual design, construction or operation of any element of
<br />the PROJECT facilities.
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<br />2. Adhere To Applicable Laws. The BORROWER shall strictly adhere to all applicable federal,
<br />state, and local laws and regulations that are in effect or may hereafter be established
<br />throughout the term of this contract.
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<br />3. Designated Agent Of The CWCS. The CWCB's agents and employees are hereby
<br />designated as the agents of the CWCB for the purpose of this contract.
<br />
<br />4. Contract Is Not Assignable. The BORROWER may not assign this contract except with the
<br />prior written approval of the CWCB.
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<br />5. Contract Relationship. The parties to this contract intend that the relationship between
<br />them under this contract is that of lender-borrower, not employer-employee. No agent,
<br />employee, or servant of the BORROWER shall be, or shall be deemed to be, an employee,
<br />agent, or servant of the CWCB. The BORROWER shall be solely and entirely responsible for
<br />its acts and the acts of its agents, employees, servants, engineering firms, construction
<br />firms, and subcontractors during the term of this contract.
<br />
<br />6. Complete Integration Of All Understandings. This agreement is intended as the
<br />complete integration of all understandings between the parties. No prior or
<br />contemporaneous addition, deletion, or other amendment hereto shall have any force or
<br />effect whatsoever unless embodied herein in writing. No subsequent novation, renewal,
<br />addition, deletion, or other amendment hereto shall have any force or effect unless
<br />embodied in a written contract executed and approved pursuant to STATE fiscal rules, unless
<br />expressly provided for herein.
<br />
<br />7. In Event Of A Conflict. In the event of conflict between the terms of this contract and
<br />conditions as set forth in any of the appendices, the provisions of this contract shall control.
<br />
<br />8. CWCS May Release Contract. In its sole discretion, the CWCB may at any time give any
<br />consent, deferment, subordination, release, satisfaction, or termination of any or all of the
<br />BORROWER'S obligations under this contract, with valuable consideration, upon such terms
<br />and conditions as the CWCB may determine to be advisable to further the purposes of this
<br />contract or to protect the CWCB's financial interest therein, and consistent with both the
<br />statutory purposes of this Contract and the limitations of the statutory authority under which
<br />it is made.
<br />
<br />9. Casualty and Eminent Domain. If, at any time, during the term of this contract, (a) the
<br />BORROWER'S PROJECT facilities, including buildings or any portion thereof, are damaged or
<br />destroyed, in whole or in part, by fire or other casualty, or (b) title to or use of the PROJECT
<br />facilities or any part thereof shall be taken under the exercise of the power of eminent
<br />domain, the BORROWER shall cause the net proceeds of any insurance claim or
<br />condemnation award to be applied to the prompt replacement, repair and restoration of the
<br />PROJECT facilities or any portion thereof, or to repayment of this loan. Any net proceeds
<br />remaining after such work has been completed or this loan has been repaid, shall be
<br />retained by the BORROWER. If the net insurance proceeds are insufficient to pay the full cost
<br />of the replacement, repair and restoration, the BORROWER shall complete the work and pay
<br />any cost in excess of the net proceeds. In the event BORROWER opts to repay the loan,
<br />
<br />Tilton Lateral, Inc.
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<br />Loan Contract
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