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<br />,......., <br />, '. <br /> <br />the prior written approval of the STATE, <br /> <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, <br />agent, or servant of the STATE. The BORROWER shall be solely and entirely responsible for its <br />acts and the acts of its agents, employees, servants, engineering firms, construction firms, <br />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 the Event Of A Conflict. In the event of a 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 25% <br />of the 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 obtaining <br />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 CONSULTANT 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 />local regulatory requirements, <br /> <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 consideratiDn, upon such terms and <br />conditions as the STATE may determine to be advisable to further the purposes of this contract <br />or to protect the STATE'S financial interest therein, and consistent with both the statutory <br />purposes of this contract and the limitations of the statutory authority under wnich it is made, <br /> <br />7. 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 /> <br />Chilco:t Ditch Company <br /> <br />Page 9 of 13 <br />