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<br />.:; :~"'. <br />' ....1 <br /> <br />- <br /> <br />C. The STATE and the BORROWER mutually agree as follows: <br /> <br />1. Designated agent of the STATE. The CWCB, its agents and employees, is hereby designated <br />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 the <br />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, agent, or <br />servant of the STATE. The BORROWER will be solely and entirely responsible for its acts and the acts <br />of its agents, employees, servants, engineering firms, construction firms, and subcontractors during <br />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, deletion, <br />or other amendment hereto shall have any force or effect whatsoever unless embodied herein in <br />writing. No subsequent novation, renewal, addition, deletion, or other amendment hereto shall have <br />any force or effect unless embodied in a written contract executed and approved pursuant to STATE <br />fiscal rules. <br /> <br />5. Eligible expenses. PROJECT construction costs eligible for financing by the STATE shall be <br />limited to the cost of: <br /> <br />a. Preparing final designs and specifications for the PROJECT. <br /> <br />b. Preparin9 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, acquiring the land and water rights needed for <br />the PROJECT, and for complying with all federal, state, and local regulatory requirements. <br />Legal services must be approved by the STATE in writing before they are rendered to be <br />eligible for payment by the STATE. <br /> <br />APPLETON ML350 DITCH COMPANY, INC. LOAN CONTRACT <br /> <br />Page 8 of 11 <br />