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-z- <br />Each sight daft 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 letter of credit refers to <br />'s application for a permit to engage in mining and reclamation <br />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 <br />Bank of ("the Bank") shall notify the Director at least 90 days prior to an expiration <br />date in writing by registered mail, at the above address, that the Bank elects not to extend the letter of credit for such <br />addifionat period. In such event, in addition to his power to draw hereon under the preceding paragraphs, the Director may <br />draw the full or any lesser amount hereof at any 6me prior to such expiration date by sight draft, or drafts, accompanied by <br />the written statement of the Director certifying that the amount drawn will be held as a cash deposit in lieu of financial <br />warranty, as provided in applicable Colomdo 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 draft <br />presented pursuant to this letter of credit, and will be surrendered to the Bank with any draft which draws the full amount, or <br />the balance remaining available, under this letter of credit. Delivery of the original letter of credit, sight draft(s) and all other <br />documents required as a condition precedent for payment, may be made by overnight courier to the Bank. Each payment on <br />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 (1993 Revision), International <br />Chamber of Commerce -Publication No. 500 (the "UCP500") and shall be governed by the laws of the State of Colorado <br />with respect to subject matters not addressed by the UCP500. in the event of an action between the beneficiary and the Bank <br />regarding this letter of credit, the bank submits to the jurisdiction and venue of the Denver District Court, State of Colorado. <br />The Bank agrees to accept service of process in any such action, if service is trade by registered or certified trail (return <br />receipt requested) or courier service, postage or delivery fee prepaid, to the address of the Bank set forth above. <br />If any expimtion date specified herein shall Fall upon a day other than a regular business day of the Bank, the expiration date <br />shall ipso facto be extended to the close of business on the next successive business day ofthe Bank. <br />The Bank of <br />By <br />Date <br />Authorized Signature <br />NOTES: 1. The Letter ofCredit shall not be in excess of 10 percent ofthe bank's capital surplus account or in excess of <br />30 percent if the applicant has more than one Letter of Credit far different permits. To demonstrate this <br />requirement, the issuing bank shaft provide a balance sheet certified by a Certifted Public Accountant. <br />Generally, this is available in the Bank's most recent Annual Report or Call Report. <br />2. The Letter of Credit shall be submitted on the Bank's letterhead. <br />M:Uninlchare\lwndCam5111AC.tmd 08/'242004 <br />