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prior written approval of the STATE. <br /> 3. Contract Relationship. The parties to this contract intend that the relationship between them <br /> contemplated by 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, agent, <br /> or servant of the STATE. The BORROWER shall be solely and entirely responsible for its acts and <br /> the acts of its agents, employees, servants, engineering firms, construction firms, and <br /> subcontractors during the performance of this contract. <br /> 4. Complete Integration Of All Understandings. This agreement is intended as the complete <br /> integration of all understandings between the parties. No prior or contemporaneous addition, <br /> deletion, or other amendment hereto shall have any force or effect whatsoever unless embodied <br /> herein in writing. No subsequent novation, renewal, addition, deletion, or other amendment <br /> hereto shall have any force or effect unless embodied in a written contract executed and <br /> approved pursuant to STATE fiscal rules, with the exception of the Revision Letter as described in <br /> the Changes Provision of this contract. <br /> 5. In Event Of A Conflict. In the event of conflict between the terms of this contract and conditions <br /> as set forth in any of the appendices, the provisions of this contract shall control. <br /> 6. Eligible Expenses. PROJECT costs eligible for financing by the STATE shall be limited to the cost <br /> of: <br /> a. Preparing final designs and specifications for the PROJECT. <br /> b. Preparing bid and construction contract documents. <br /> c. Preparing environmental assessment or environmental impact statements, and otherwise <br /> complying with the Federal National Environmental Policy Act. <br /> d. Complying with all federal, state, and local regulatory requirements, including the obtaining of <br /> all required permits. <br /> e. Fish and wildlife mitigation measures required by federal, state, or local laws and regulations. <br /> f. Actual construction as called for in the design documents and in change orders approved by <br /> the STATE, the BORROWER, the CONSULTANT and the CONSTRtCT1ON IRF J <br /> g. Engineering services for construction management, Includir'ig design nd construction <br /> management for STATE-approved change orders. <br /> 1 ff 11 <br /> h. Legal services for reviewing engineering services contracts, revs wing this ntr4dt, reviewing. <br /> construction contract documents, and for complying with all federal, state, r and"lobal regulatory <br /> requirements. Legal services must be approved by the STATE in writing and in advance to be <br /> eligible for financing by the STATE. <br /> 6. STATE May Release Contract. In its sole discretion, the STATE 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 and <br /> conditions as the STATE may determine to be advisable to further the purposes of this contract or <br /> to protect the STATE'S financial interest therein, and consistent with both the statutory purposes of <br /> this contract and the limitations of the statutory authority under which it is made. <br /> Smith Irrigation Ditch Page 9 of 13 Loan Contract <br />