2007-09-25_REVISION - M1984041 (9)

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-3- The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does not operate to liquidate, limit, ealuge or restria the Operator'a obligaaoac to complete reclamation and to comply in all respects with the permit and with applicable laws a~ regulations governing reclamation, even though the actual cost thereof may substantially exceed the amount of this Financial Warranty. The.Warrdntor shall not be liable under this Financial warranty for an amount greater than the sum designated herein, unless increased by a later amendment to This Financial warranty. This Fittaacial Warranty shall be reviewed by the Board from time to tune, and the Board may require an increase in the principal sum of this Financial Warranty (and a corresponding increase in the surety amount} to cover increases in the estimated costs of reclamation, but no such increase shall bind the Warrantor unless and until it shall have consented thereto in writing by the issuance of an additional Financial Warranty or by an endorsement to this Financial Warranty. The Warrantor reserves the right to cancel this Financial Warranty, effective only upon an anniversary date, and only by giving written notice to that effect, mailed by Certified Mail, at least ninety (90) days prior to such anniversary date, addressed to both the Operator at its address herein stated, and w the Board at the address herein stated. In the event of such cancellation, this Finattcisl Warranty shall nevertheless remain in full force and effect as respects the reclamation of all areas disturbed prior to the effeaive date of such cancellation, unless and utttil the Operator shall file a substitute Financial Watxanty which: (1} assumes liability for all reclamation obligations which shall have arisen u any time while this Financlal Warranty is in force: and (2) is accepted in writing by the Board. In the event of such cancellation, 1f the Financial Warranty is not fully released, the amount of the continuing Financial warranty ava7able for the reclamation of areas disturbed and unreclaimed az the date of cancellation shall be fixed by the Boazd u the atnotlttt it dettsntinea necessary to complete such reclamation (which amotmt tray not exceed the sttm designated herein and the Board shall coneurretnly idemify such areas in writing, and notify the Warrantor and the Operator thereof. Thereafter, the obligation of the Warrantor shall be limited to reclamation of the areas so idermfired. The wnsideration for the Warrantor's exeattion of this agreement is the promise of the Operator to pay the prPmn,me, but failure by the Operator to pay such premiums shall not invalidate or diminish the warrsator's obligation hereunder. The Board may make demand upon the Warrantor for payment hereunder if the Board dererass that reclamation which ought to have been performed by the Operator, or its successors or assigns, remains unperformed, and ff Pittaaciai Warranty forfeitare procedures regt>acd by law have bean imtiatal. No other condition pt~edent need be fulfilled to entitle the State to receive the amount so dt:man!t~+ However, if, upon completion of reclamation by the State, the amouata expended for reclamation shall be less than the amoum received from the Warrantor, the exuxs shall be promptly mfuaded to the Warrantor. If demand is made upon the Warrantor for paymerrc of an amount due to the Board hereunder. and if the Warrantor fails to make payta~ of such amoum within ninety (90) days after the date of receipt of such demand, or if it should thereafter be determined, by agreement of the Warrantor or by final judgment of court, that the amount demanded was properly payable, the Warrantor agrees to pay m the Board, in addition to the amount demanded, interest at the prime rue in effect from time to time u The United Bank of Daher for the period commencing at the e~ of such Winery-day period and ending on the date of atnral payment.