2008-03-31_REVISION - M1979192 - Laserfiche WebLink

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-2- Each sight draft so drawn and presented shall be honored by us if presented prior to the close of business on the expiration dare of this letter of credit. The Bank shall make a payment by wire transfer to the Beneficiary. This credit refers to _ _ Rockbottom , LLC 's application for a permit to engage in mining 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 First National Bank of Pueblo ("the Bank")shall notify the Director at least 90 days prior to an expiration date in writing by certifie:d 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 ofthe Director certifying; that the amount drawn will be held as a cash deposit in lieu of financial warranty, as provided in applicable Colorado sta#~utes governing mined land and reclamation. The original signed Letter of credit and any amendments will be presented to the Bank by the beneficiary along with any draft presented pursuant to this letter of credit, and will be surrendered to the Bank with any draft which draws the full amount, or the balance remaining available, under this letter of credit. Delivery ofthe original letter of credit, sight draft(s) and all other documents required as a c;ondition precedent for payment, maybe made by overnight courier to the Bank. Each payment on a draft shall reduce the al;gregate above written amount by the amount drawn. This Letter of Credit is subject to Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce -Publication No. 500 (the "liCP500") and shall be governed by the [aws ofthe State of Colorado with respect to subject matters not addressed by the UC.PSOO..tn the event of an action between the beneficiary and the Bank regarding this letter of credit, the bank submits to the jurisdiction anal venue ofthe Denver District Court, State ofColorado. The Bank agrees to accept service of process in any such action, if service is made by registered ar certified mail (return receipt requested) or courier service, postage or delivery fee prepaid, to the address ofthe Bank set forth above. if any expiration date specified herein shall fall upon a day other than a regular business day of the Bank, the expiration date shall ipso facto be extend:d to the close of business on the next successive business day ofthe Bank. 7-he First National Bank of Pueblo BY ~. -~'C`.°,-. f,.°.°'-- Date _ 3I a °/ ~ 8 Auth •ize;d Signature 1V()TES: (. The Fetter of Credit shalt{ nc~t be in excess of 10 percent c>f the bank's capital surplus account or in excess of ~0 percentt if the applicant has more than one letter of Credit fctr rlifterent permits. "1'a demonstrate this requirement, the issuing bank shall provide a balance sheet certified by a Certified Public Accountant. C;eneralty, this is available in the Bank's.most recent Annual Report or Call Report.. 2. The Letter of Credit shall be submitted on the Bank's letterhead. 3. The Minecl Laud Reclamation Board or the Office of Mined Land Reclamation may recover the necessary costs, including attorney's fees or fees incurred in foreclosing on or realizing the collateral used in the event this Letter ofCredit is forfeited. The face amount of this Letter ofCredit shall be increased by five hundred dollars ($Sp0A0) to cover these costs. M: unini9harc`~~~hdf~rmsl[Lt X'' brut frn~ (16i 10/0?)