Merle C. Basse11,P. C. Anorney at Law If) Wes! Lorena Ave. Area Code 618 \V'ood River. Illinois 62095 Telephone 254-0141 December 18, 1985 Mr. Ernie Asebey Ill. Dept. of Mines Minerals 227 South 7th St. - Room 201 Springfield, IL 62706 Re: SureFire Coal, Inc. Dear Sir: Enclosed is the corrected Irrevocable Letter of Credit which has been executed by the First National Bank of Wbod River. we respectfully request that the Letter of Credit previously furnished you that contained the errors be returned to me innediately so that it may be returned to the bank for cancelling so that duplicates are not on file. enc. RECEIVED 19 ESL-5 DEPT. OF AND MYERALS LAND RECLAMATWN DW. RECEIVED - 1L. .. 1113019193 WW ll?l . A i? - DEPT. OF MINESAND mum LAND RECLAMAHON M. THE mug-sir meme BANK OF WOOD RIVER WOOD RIVER . ILL. 62095 December 12, 1985 Irrevocable letter of Credit Amount: $320,608.00 Permit No . 129 Illinois Department of Mines and Minerals Land Reclamation Division 227 South 7th Street Rocm 201 Springfield, IL 62706 The First National Bank of Wood River, Wood River, IL (Issuing Bank) hereby issues this Irrevocable letter of Credit to the Illinois Department of Mines and Minerals (Department) for SureFire Coal, Inc. Permit No. 129 (Permittee) . This Irrevocable letter of Credit authorizes the Department to draw on the Issuing Bank, up to the amount of $320,608.00, by sight draft presented for payment to the Issuing Bank. The sight draft shall include a signed statenent the Department that the Permittee? 5 acts or failures to act warrant forfeiture of this Irrevocable letter of Credit, pursuant to 62 Ill. Admin. Code 1806.12 and 1808.13. The Issuing Bank authorizes the Department, its lawful assigns, or the attorneys for the Department and its assigns, to sue, to waive notice and process, to appear on behalf of, and to confess judgment against the Issuing Bank, in the event that this Irrevocable letter of Credit is dishonored. This Irrevocable letter of Credit shall be deemed to be made in Sangamon County, Illinois, for purposes of enforcement and any actions thereon shall be enforce- able in the Courts of Illinois and shall be construed under Illinois law. The Issuing Bank is a national banking corporation operating under charter issued for national banking corporations and conducts its business at the address shown above. The Issuing Bank shall give prompt notice to the Permittee and to the Department of any notice received or action alleging the insolvency or bankruptcy of the Issuing Bank, or alleging any violations of regulatory requirements which could result in suspension or revocation of the Issuing Bank's charter or license to do business. In the event the Issuing Bank becomes unable to fulfill its obligations under this Irrevocable letter of Credit for any reason, notice shall be given immediately to the Permittee and the Department, provided that such notice shall in no way relieve the Issuing Bank of its obligations under this Irrevocable Letter of Credit. December 12, 1985 Page 2 Upon the incapacity of the Issuing Bank by reason of bankruptcy, insolven- cy, or su3pension or revocation of its charter or license, the Permittee, within thirty (30) days after receiving notice thereof from the Department, shall substitute for this Irrevocable letter of Credit a replacement bond that fully complies with the Department's regulations. Upon the Permittee' 5 failure to sunnit a replacement bond as herein provided, the Department shall suspend Permit No. 129 until such substitution has been made. This Irrevocable letter of Credit is a binding obligation on the Issuing Bank, independent of the acts and omissions of the Permittee, payable upon presentment to the Department or its written order. The Department and/ or the State of Illinois shall in no way be obligated to the Issuing Bank or Permittee for repayment of all or any portion thereof subject to the provisions of 62 Ill. Admin. Code 1808.14. This Letter of Credit will automatically extend for an additional term of One (1) year unless the Bank provides at least ninety (90) days notice prior to the expiration date that it does not wish to extend the Letter of Credit for an additional period. The Department has the right to draw this Irrevocable letter of Credit in the event Permittee does not replace this Irrevocable letter of Credit prior to thirty (30) days before the expiration of this Irrevocable letter of Credit with a replacement bond that complies with the Department Regulations, pursuant to 62 Ill. Admin. Code 1806.12(c) and/or 62 Ill. Admin. Code 1808.13. GRAY.HUNTER STENN A mamansmp or PROFESSIONAL CORPORATIONS CERTIFIED PUBLIC ACCOUNTANTS NEW ROUTE I3 WEST, P.O. Box I728 MARION, ILLINOIS 62959-7728 MARION, ILLINOIS CHICAGO, ILLINOIS WEST FRANKFORT, ILLINOIS QUINCY, ILLINOIS December 18, 1985 RECEIVED h?A?iQ' . ?1 (9:513:34. Illinois Department of Mines and Minerals Springfield, Illinois 62700 n- Re: Sure Fire Coal, Inc. - Letter of Credit Permit No. 129 Gentlemen: We are hereby certifying that the Statement of Condition of The First National Bank, Wood River, Illinois as of September 30, 1985 is correct and that the surplus of $2,800,000.00 is correct. Sincerely, ccountants cc: Mike McClintock i?iio OF WOOD RIVER WOOD RIVER . ILL. 62095 December 12, 1985 Illinois Department of Mines 8 Minerals Land Reclamation Division 227 South Seventh Street Room 201 Springfield, IL 62706 Gen?emen: We enclose the Statement of Condition dated September 30, 1985, for your reviewing. Our legal lending limit is in excess of thereby, the Letter of Credit issued is well within our legal lending limits. Yours truly, Thomas Macias Exec. Vice President ENC: