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2006-09-06 LOC Establish 3172Central Bank September 6, 2006 Coon Rapids 3585 124th Ave. NW Letter of Credit No. 3172 Coon Rapids, MN 55433 (763) 780-0484 Fax (763) 783-1863 City of Albertville c/o City Clerk P.0.Box 9 Eden Prairie Albertville, MN 55301 6640 Shady Oak Road Eden Prairie, MN 55344 (952) 944-6640 Ladies and Gentlemen: Fax (952) 944-3696 We hereby establish this as our Letter of Credit in your favor for the account of Albertville Plaza, LLC, a Minnesota limited liability Golden Valley company ("Borrower"), in the amount of One Hundred Eighty-nine Golden Valley. MvN55427 Thousand Eight Hundred Fifty and no/100 ($189,850.00) Dollars in the ( a63(763) 545 6663 aggregate available to you by one (1) draft at sight on the undersigned Bank. A draft drawn under this Letter of Credit must: St. Michael 750 Central Avenue NW St. Michael, MN 55376 1. Be sipp-py1ed bV an authorized officer of the addressee hereof, signed (763)497-3114 Fax (763) 315-8958 2. Bear on its face the clause "Drawn under Letter of Credit No. 3172, dated September 6, 2006; Stillwater 2270 Frontage Road West 3. Be presented for payment at Central Bank, 3585 124cn P.O. Box 225 Stillwater, MN55082 Avenue N.W., Coon Rapids, Minnesota 55433, no later than 2:00 439-3050 Fax1(651) 351--1550 p.m. Coon Rapids times on the Expiry Date (defined below), after which time this Letter of Credit will be null and void; White Bear Lake 4. Be accompanied by this Letter of Credit; and 3670 East County Line N White Bear Lake, MN 55110 426-2564 5. Not exceed the amount of One Hundred Eighty-nine Fax(651)426-6348 Fax Thousand Eight Hundred Fifty and no/100 ($189,850.00) Dollars and be accompanied by a certificate signed by an authorized officer of the addressee hereof, stating as follows: Website www.centralbnk.com "The undersigned is entitled to make a draw hereunder in the amount of $189,850.00 because a default has occurred under that certain Developer's Agreement between 1121 Equal Housing LENDER Member F.D.I.C. Page 2 Borrower and addressee dated September 6, 2006, and has not been cured by the Borrower within any applicable period of cure, grace or notice set forth in the Developer's Agreement." This Letter of Credit is not assignable or transferable by endorsement or in any other manner. This Letter of Credit shall terminate on July 31, 2007 (the "Expiry Date"). It is a condition of this Letter of Credit that it shall be automatically extended for additional periods of one (1) year from the present or each future expiration date unless sixty (60) days prior to such date you are notified in writing by registered mail at the afore mentioned address that Central Bank elects not to renew this Letter of Credit for additional periods. This Letter of Credit is subject to the Minnesota Uniform Commercial Code — Letters of Credit as set forth in Minnesota Statutes Sections 336.5-101 through 336.5-117, as amended. We hereby agree that a draft under and in compliance with the terms of this Letter of Credit will be duly honored upon presentation, we are not to be called upon to resolve issues of law or fact between you and Borrower. This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified or amplified by reference to any document, instrument or agreement referred to herein or in which this Letter of Credit relates, and any such reference shall not be deemed to incorporate herein by reference to any document, instrument or agreement. CENTRAL BANK BY ay y Qh� Sheryl Carlson Its Vice President