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<br />/.-., <br /> <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 <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, with <br />the exception of the Revision 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 />b. Preparing bid and construction contract documents. <br /> <br />c. Preparing environmental assessment or environmental impact statements, and <br />otherwise 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 <br />approved 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. Legal services must be approved by the STATE in writing <br />and in advance to be eligible for financing by the STATE. <br /> <br />i. Repayment of any principal amount borrowed under Loan Contract C153854, dated <br />March 22,1999, between the BORROWER and the STATE. <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 consideration, upon such terms <br /> <br />Leroux.Creek Water Users' Association <br /> <br />Page g of , 3 <br /> <br />Loan Contract <br />