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05-018.00 Sterling Savings Bankr - `"~ ~~~ ~~; ~~ Ivtarch 15, 2005 iVlr. Steve Worley City o~Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, ~V~ 99206 RE: Irrevocable Standby L' etter of Credit No. SS13-SB-2005/0272 Dear Steve: STERLING~~° SAVINGS BANK ~~Vith reFerence to the above Trrcvocable Standby Letter of Credit issued today in favor of the City of Spokane Valley in the amount of US$121,533.56 for the account of PinecroEt LhC, we are pleased to enclose our origuial operative document. In ease of a dra~\~ing, please provide your reimbursement instructions directly to this of'tice. ~Ve ask that you acknowledge your acceptance of this Letter of Credit by dating, signing and returning a copy of this letter to my attention in the enclosed postage paid envelope provided for your convenience in reply. Tf you have any questions, please fool free to contact me at 1-509-835-1637 or 1-877- 453-0892. Sincerely, ~1'~~~ Vice President and Manager $aukuig Dlvlston ~~~ c~~~- 1 1 1 N. WALL SPOKANE, WA 99201-0696 PFEOh E Ci l~B-S6d3-6447 FAX: 5179-36®-2049 ~'.~~_~~ .. , . . ~~ ,~ ST>/RLING SAVINGS BAr~TK International Banking Division 111 Int. `'Lull Spokane, Washington 99201-0696 (Issuance/I~tegotiation: l -877-453-0892) March 1 S, 2005 STERLING ~~ SAVINGS BANK TRREVOCABT.,E STANDBY LEfiTER OI9 CREDIT NUI~TBER SSB-SB-2UU5/0272 BENEFICIARY: City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley; WA 99206 T.ETTF,R OF CREDIT NUMBER: APPLICANT: PinecroR LLC 12310 E. Mirabcau Y}.-~ry, Suite 150 Spokane Valley, WA 99216 SSB-5B-2005/0272 EXPIRY DATE: March 15, 2006 AT: Our counters presently located at 111 N. \~Vall Spokane, \~Vashington 99201-0696 AMOUNT: US$121,533.SG NOT TO EXCEED: --One hundred twenty-one thousand five hundred thirty-three and 56/100 U.S. llollars--------------------------------------------------------------------------------- \~Vc hereby issue our Irrevocable Standby 'Letter of Credit No. SSB-SB-2005/0272 for the Debtor's iVTitigation Agreement SR 27 (Pines Road)/~~ansfield Road Constriction Project available by your draft(s) drawn at sight on us and accompanied by the following: 1. k3eneficiary's signed Statement certifying that: "I, the undersigned duly authori;~ed representative of the City of Spokane Valley, hereby certify that the draft drawn under this Letter of Credit represents the developer's contribution to the Debtor's Mitigation Agreement for the SR 27 (Pines Road)IVlansfield Road Construction Project for mitigation of future traffc impacts identified in the Mitigation Agreement signed February 8, 2005. 2. The original of this Letter of Credit. SPECIAL CONDITIONS: 1. Partial drawings are permitted 2. Any and all banking charges, other than those of the issuing bank, are for the account of the beneficiary. 1 1 1 N VJALL SPOKAN[, bVA 99 20 1-069 5 PHCiNE: 666-566.5447 FAX: 509-358-2049 -~ '~ J ~ ~. ~~ STERLING ~' SAVINGS BANK 3. It is a condition of this Letter of Credit that it shall be automatically extended, without amendment; for an additional period of one year from the present expiration date or each future expiration date, unless we have notified you ul v«-iting not less than thirty (30) days before such expiration date, that we elect not to renew this Vetter of Credit. In that event, you may draw your sight draft on us under this Letter of Credit prior to the close of business on the then relevant expiration date, up to the full amount then available under this T..etter of Credit. All written notification shall be sent via registered mail. 17rafts deawn under. this Credit must bear the clause: ".Dra~~n under Stcrluig Savings Bank Irrevocable Standby Leiter of Credit No. SSB-SB-2005/0272." Pursuant to U.S. I.aw, we are prohibited from issuing, transferring, ace.epting or paying Letters of Credit to any party or entity identified by the Office of Foreign Assets Control, U.S. Dept. of Treasury or subject to the denial of export privileges by the U.S. Dept. of Commerce. T'lus credit is subject to "The Uniform Customs and Practice for Documentary Credits" (1993 Revision) International Chamber of Commerce Publication TTo. 500. ~Ve hereby engage with you that drawings presented and negotiated under and in compliance with the terms of this Irrevocable Standby Letter of Credit v~rill be duly honored withui 5 business days of presentation to us. The amount of each drawilig must be endorsed on the reverse of this credit. STERLING SAVTI\jGS Br-1I~FK, A i\~MBER OF TI-TF FBIaF.RAL RESERVIJ SYSTI/M blc, Vice President and iVlanager rnationa113anl:.ing Division t t i r~. w~~~ SPOKAtJE, WA 9920 1 -069 6 PHONE: B6a-566-644'7 FAX: 509-36B-2049