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Gentlemen: <br />r' <br />We hereby issue and establish our irrevocable letter of credit, the amount of which is available by beneficiary's draft or <br />drafts drawn upon us, which shall be paid at sight, when accompanied by the following document: <br />A written statement of the Director ( "the Director ") of the Division of Reclamation, Mining and Safety of the State <br />of Colorado ( "the Division") certifying that he is a duly authorized official acting on behalf of the State of <br />Colorado and that the amount of the accompanying sight draft is due andpayable to the State of Colorado pursuant <br />to applicable provisions of Colorado statutes governing mined land reclamation and that Tim d'.ftY.*T.WgM <br />(Operator's Name) or its successor has neglected, failed, or refused to pay such amount although <br />requested to do so by the Director. <br />Each sight draft so drawn andpresented shall be honored by us ifpresented prior to the close of business on the expiration <br />date of this letter of credit The Bank shall make a payment.liy wire transfer to.the Beneficiary. This letter of credit refers <br />to Tim and Justin Kuntz Trucking; LLC X is (Operator's Name) application for a permit to <br />engage in mining and reclamation activities within the State of Colorado. <br />It is an express condition of this letter of credit that it shall be automatically extended for successive additional periods of <br />one year each, from the initial and each future'expiration date unless th_e•Northstar <br />Bank of Co!oiado ("the Bank) shall notify the Director at feast 90 days prior k an expiration date in writing by <br />registered mail, at the above address, that the Bank elects not to extend the letter of credit for such additional period. In <br />such event, in addition to his power to draw., hereon under the preceding paragraphs, the Director may draw the full or any <br />lesser amount hereof at any time prior to such expiration date by sight draft, or drafts, accomVahi6d.-by the written <br />statement of th6 Difector'cerdfyiiig that the ainotint drawn will be held as a cash deposit in lieu off ran_ cial yvarranty, as <br />provided in applicable Colorado statutes governing"mined laiid and reclamation. - <br />The original signed letter of credit and any amendments will-be presented to the Bank by the beneficiary along with any <br />draft presented pursuant to this letter of credit, and will be surrendered to the Bank with any draft which draws the full <br />amour or the balance remaining available under thus letter of credit. Delivery of the on i fetter of credi `si `f draft (s) <br />� g � ry t, � ( ) <br />and all other documents required as'a condition-precedent forpayment, may be.made,by overnight courier'Id"the Bank: <br />Each payment on a draft,shall reduce.the aggregate above written amount by the amount drawn. ; <br />This Letter of Credit is subject to Uniform Customs and Practice,for Documentary Credits (2007 Revision); 3iiternational <br />Chamber of Commerce — Publication No. 600 (the "UCP600') and shall be govemed�by,.the,laws;ofthe State.of,Colorado <br />with respect to subject matters not addressed.by the UCP600. In the event of an action between :the beneficiary and the <br />Bank regarding this letter of credit, the bank submits to the jurisdiction and venue ofthe Denver - District Court, State of <br />Colorado: ne Bank agrees to accept*service of process iri any such"action;'if service is made byeregist�e`{red or certified mail <br />(return receipt requested), or.courier. service, postage ortdelivery.fee.prepaid, to- the.addras ;of the Bank,set forth above. <br />If any expiration date specified herein shall ,fall upon a day`other than a regular business day df the Bank, the expiration <br />date shall ipso facto'be extended to the close-of business &Ahe-next successive business day-of the Bank. <br />The NorthStar ' <br />Bank of Colorado <br />akra =• a�; -'tom :.1! .:4.r -`_4 . <br />The Letter of Credit shall not be in excess of. pereent of the bank's capital surplus account or m excess df 30'percent if the <br />applicant liar more than one Letter of Credit for different permits. To demonstrate this requirement, the issuing bank should <br />proiride a balance sheet certified by a Certified Public Accountant Generally, this is available in the Bank's most recent <br />Annual Report or Call Report. <br />2. The Letter of Credit shall be submitted on the Bank's letterhead. <br />3. The Mined Land Reclamation Board or the Office of Mined Land Reclamation may recover the necessary costs, including <br />attorney's fees or fees incuned_in foreclpqing on or realizing the collateral usedin the event this Letter of Credit is forfeited. <br />The face amount of this Letter of Credit shall be increased by five hundred dollars ($506.00) to cover these.costs. <br />Mlmin \share tif�slII .oC3RDPtywith'UCP6'oobngaae BND.' 3/li% b 8)q...; :x.r ' <br />