2006-09-01_REVISION - M1994114 - Laserfiche WebLink

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r,~ RECE9°~/ED AUG 0 3 2006 IRREVOCABLE LETTER OF CREDIT The Pueblo Bank and Tmst Company Street: 301 W. 5'" Street City: Pueblo State: Colorado Zip Code: 81003 Area Code: 719 Telephone: 545-1834 Beneficiary: STATE OF COLORADO MINED LAND RECLAMATION BOARD 215 CENTENNIAL BUILDING 1313 SHERMAN STREET DENVER, COLORADO 80203 LETTER OF CREDIT NUMBER: Amount US $26,460.00 Date of Issuance: 08/01/06 Initial Expiration Date: 07/31/07 Pueblo QBank SINCE 1 8 8 9 Canon City 719/269-9100 1401 Main Street Canon City, CO 81212 Applicant: Kagan & Son, L.L.C. Street: 555 Emest Ave City: Westcliffe State: Colorado Zip Code: 81252 Area Code: 719 Telephone: 783-0387 Gentlemen: We hereby issue and establish our irrevocable letter of credit, the amount of which is available by beneficiary's draft or drafts drawn upon us, which shall be paid at sight, when accompanied by the following documents: A written statement of the Director ("the Director") of the Division of Minerals and Geology of the State of Colorado ("the Division") certifying that he is a duly authorized official acting on behalf of the State of Colorado and that the amount of the accompanying sight draft is due and payable to the State of Colorado pursuant to applicable provisions of Colorado statutes governing mined land reclamation and that Kagan & Son, L.L.C. or its successor has neglected, failed, or refused to pay such amount although requested to do so by the Director. Each sight draft so drawn and presented shall be honored by us if presented prior to the close of business on the expiration date of this letter of credit. This credit refers to Kagan & Son South Pit with Kagan & Son, L.L.C. as operator for an application for a permit to engage in muting and reclamation activities within the State of Colorado. It is an express condition of this letter of credit that it shall be automatically extended for successive additional periods of one year each, from the initial and each future expiration date unless The Pueblo Bank and Tmst Company ("the Bank") shall notify [he Director at least 90 days prior to an expiration date in writing by registered mail, at the above address, that the Bank elects not to extend the credit for such additional period. In such event, in addition to his power to draw hereon under the preceding paragraphs, the Director may draw the full or any lesser amount hereof at any time prior to such expiration date by sight draft, or drafts, accompanied by the written statement of the Director certifying that the amount drawn will be held as a cash deposit in lieu of financial warranty, as provided in applicable Colorado statutes governing mined land and reclamation.