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BORROWER any unused funds contained in the CD ACCOUNT. <br /> C. The STATE and the BORROWER mutually agree as follows: <br /> 1. Designated Agent Of The STATE. The CWCB, which includes its agents and employees, is <br /> hereby designated as the agent of the STATE for the purpose of this contract. <br /> 2. Contract Is Not Assignable. This contract is not assignable by the BORROWER except with <br /> the prior written approval of the STATE. <br /> 3. Contract Relationship. The parties to this contract intend that the relationship between <br /> them contemplated by this contract is that of lender-borrower, not employer-employee. No <br /> agent, employee, or servant of the BORROWER shall be, or shall be deemed to be, an <br /> employee, agent, or servant of the STATE. The BORROWER shall be solely and entirely <br /> responsible for its acts and the acts of its agents, employees, servants, engineering firms, <br /> construction firms, and 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 <br /> embodied herein in writing. No subsequent novation, renewal, addition, deletion, or other <br /> amendment hereto shall have any force or effect unless embodied in a written contract <br /> executed and approved pursuant to STATE fiscal rules, with the exception of the Revision <br /> Letter as described in 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 <br /> conditions as set forth in any of the aupendices, the provisions of this contract shall control. <br /> 6. Eligible Expenses. PROJECT costs bI`:r+ E.Pfor ntjthe STATE shall be limited to the <br /> cost 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 <br /> obtaining of all required permits. <br /> e. Fish and wildlife mitigation measures required by federal, state, or local laws and <br /> regulations. <br /> f. Actual construction as called for in the design documents and in change orders approved <br /> by the STATE, the BORROWER, the CONSULTANT and the CONSTRUCTION FIRM. <br /> g. Engineering services for construction management, including design and construction <br /> management for STATE-approved change orders. <br /> h. Legal services for reviewing engineering services contracts, reviewing this contract, <br /> reviewing construction contract documents, and for complying with all federal, state, and <br /> The Decker Lateral Company Page 9 of 14 Loan Contract <br />