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District Agreement No. 4-1653-C PROVEMENTS related change order items or costs and,if the con- tractor's estimate is greater than the estimate provided in Exhibit A, to reject IMPROVEMENTS or to modify design of IMPROVE- MENTS mutually acceptable to CITY and STATE. Exhibit A is at- tached and made a part of this Agreement. SECTION II CITY AGREES: (1) At no cost to STATE, to prepare all design plans, specifications and estimate relating to IMPROVEMENTS and to pre- pare modifications to those changes as may be necessary to ade- quately construct IMPROVEMENTS to STATE standards. CITY shall only be responsible under Section III, Article (4) for the CITY initiated changes to the original design plans prepared by STATE. (2) To deposit with STATE within twenty-five (25) days of receipt of billing therefor (which billing will be forwarded immediately following execution of this Agreement) the amount of $352,000, which figure represents CITY's estimated cost (includ- ing contingencies) of the work to be performed by STATE on CITY's behalf pursuant to this Agreement. Exhibit A, summarizes the Engineer's estimate for construction of PROJECT IMPROVEMENTS, and net amount to be paid by CITY. (3) To pay one hundred percent (100%) of the actual �s construction cost of IMPROVEMENTS, including thE! cost of IMPROVE- MENTS construction related claims and the cost of STATE defense