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-2- <br /> Each sight draft so drawn and presented shall be honored by us if presented prior to the close of business on the expiration <br /> date of this letter of credit. The Bank shall make a payment by wire transfer to the Beneficiary. This credit refers to <br /> Perin,Inc. 's application for a permit to engage in mining <br /> 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 the High country'Bank <br /> Bank of ("the Bank") shall notify the Director at least 90 days prior to an <br /> expiration date in writing by certified mail, at the above address, that the Bank elects not to extend the credit for such <br /> additional period. In such event, in addition to his power to draw hereon under the preceding paragraphs, the Director <br /> may draw the full or any lesser amount hereof at any time prior to such expiration date by sight draft, or drafts, <br /> accompanied by the written statement of the Director certifying that the amount drawn will be held as a cash deposit in <br /> lieu of financial warranty,as provided in applicable Colorado statutes governing mined land 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 /> amount, or the balance remaining available, under this letter of credit. Delivery of the original letter of credit, sight <br /> draf(s) and all other documents required as a condition precedent for payment,may be made by overnight courier to the <br /> Bank. 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), International <br /> Chamber of Commerce—Publication No.600 (the"UCP600")and shall be governed by the laws of the 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 of the Denver District Court, State of <br /> Colorado. The Bank agrees to accept service of process in any such action, if service is made by registered or certified <br /> mail (return receipt requested) or courier service, postage or delivery fee prepaid, to the address of the Bank set forth <br /> above. <br /> If any expiration date specified herein shall fall upon a day other than a regular business day of the Bank, the expiration <br /> date shall ipso facto be extended to the close of business on the next successive business day of the Bank. <br /> The High Cou Bank Bank of <br /> By _ Date <br /> A orized Signet e <br /> NOTES: 1. The Letter of Credit shall not be in excess of 10 percent of the baWs capital surplus account or in excess <br /> of 30 percent if the applicant has more than one Letter of Credit for different permits. To demonstrate this <br /> requirement, the issuing bank shall provide a balance sheet certified by a Certified Public Accountant. <br /> Generally,this is available in the Banks most recent 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 <br /> costs, including attorney's fees or fees Incurred in foreclosing on or realizing the collateral used in the <br /> event this Letter of Credit is forfeited.The face amount of this Letter of Credit shall be increased by five <br /> hundred dollars($500.00)to cover these costs. <br /> M 1manuhare►bondformsNlL0C bnd final with UCP600language(3/12/08) <br />