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July 25, 2006
City of Albert-zlle
Attn:1'ina Laruies
5975 Main Ave
P.O. Box 9
Albertville, MN 55301
RE: Finken Water, Inc.
Letter of Credit # 423
Effective date: July 25, 2006
Expiration date: August 1, 2007
Gentlemen:
We hereby establish our Irrevocable Letter of Credit. numbered as indicateed above, and. efi'ectivc
immediately, in favor of the City of Albertville C'City-)► at the request and for the account of Firal:en Water, 1pe,
(the Developer) in the amount of and not to exceed Sixty Six Thousand Eight HiwArt:d Seventy Six Dollars and
no1001s ($66876.00 ), as such amount is decreased as provided below, available to you by sight draft of drafts
drawn upon us in connection will* g,uarant"ing payment of expenses incurred in preparing said plans and
specifications for the construction of the Site Improvements for the project known as Shoppes at Prairie Run.
Each draft drawn under this Letter of Credit must be accompa4aied by:
1. The original Letter of Credit;
2. A notarized statement execrated by the City Engineer, stating that the Developer Aas railed to perform in
aec ordanee with the Developmeni Contract, and that the City is er,.titled to draw upon the Letter of Credit.
Such statement shall set forth the defautts and the arnount required to cure such default.
Each draft dra\vu under site Letter of Credit must:
1. Be signed can behalf of the City by the City Engineer or his (her) desinnee.
2. Be in the amount required to cure the default by the Developer, amount shall riot exceed 1,66,876.00,
3. Bear on its face the clause "DRAWN UNDER LETTER OF CREI311' No. 423 dated July 25, 2006.
4. Be presented for payment during regular business hours at Stearns Bank NA, 4191 2"'' Street South, St.
Cloud, MN 56301, no later than 12:01 PNI on August 1, 2007.
Stuarns $ao.k L):a.:ow,y AiJa y, MN ♦ fdrtir, k1l`4 r t'joidrglorcl, M.N ♦ St. Glad, MN a Ulp-sd:3, ,\,:;'. s icon' -dale, `,.L
i. L-25--2000 UE 32' 40 PM STEARNS BANK ST, CLOUD FAX NO. 320 ?_53 305': P. 0=;
Hach drawing herecunder shall reduce by the amount of such drawing the amount avail ble Linder this Letter of
Credit..
We here -by agree that drafts drawn under and presented in conformity with the terms of this better of Credit will
be duly honored Lpoil presentation.
Except as otherwise expressly states, this Letter of Credit is su ject to the Unifoixrt C'ustoins and Practice foe
Documentary Credits 0 993 Revision), International Chamber of Commerce publications No. 500, As to
matters not governed by the uniform Customs, this Letter of Credit shall be govemed by and construed in
accordance with the laws of State of Minnesota, including the Uniform Commercial Code as in effect in the
State of Miauiesota.
This letter of Credit Is not transferable or assignable and is not issued for the l)enefic of m,y third party, efiw nani.
We shall not ba called aeon to resolve issues of factor law betiveen the Commission wed the Developer.
Steam- A
II ,
By:
Daryl Wa ral
Its Vice Presideat
DW:ss