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<br />r" <br />"".;J <br />,~ <br /> <br />/";.." <br />~', ' ,~ ..; <br />..... <br /> <br />BORROWER any unused funds contained in the CD ACCOUNT, <br /> <br />C, The STATE and the BORROWER mutually agree as follows: <br /> <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 /> <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 /> <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 /> <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 /> <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 appendices, the provisions of this contract shall control. <br /> <br />6. Eligible Expenses. PROJECT costs eligible for financing by the STATE shall be limited to the <br />cost of: <br /> <br />a, Preparing final designs and specifications for the PROJECT, <br /> <br />b, Preparing bid and construction contract documents. <br /> <br />c, Preparing environmental assessment or environmental impact statements, and otherwise <br />complying with the Federal National Environmental Policy Act. <br /> <br />d, Complying with all federal, state, and local regulatory requirements, including the <br />obtaining of all required permits. <br /> <br />e, Fish and wildlife mitigation measures required by federal, state, or local laws and <br />regulations. <br /> <br />f. Actual construction as called for in the design documents and in change orders approved <br />by the STATE, the BORROWER, the CONSU~ TANT and the CONSTRUCTION FIRM, <br /> <br />g. Engineering services for construction management, including design and construction <br />management for STATE-approved change orders, <br /> <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 /> <br />The Decker Lateral Company <br /> <br />Page 9 of 14 <br /> <br />Loan Contract <br />