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Letter of Credit $2,303,875Letter of Credit No. 1-06-284 Dated: April 25, 2006 Expiration Date: July 31, 2007 Amount: $2,303,875.00 Kalispell City Council City of Kalispell PO Box 1997 Kalispell, MT 59901 We hereby establish in your favor an Irrevocable Letter of Credit up to the aggregate amount of $2,303,875.00 at the request of Hutton Ranch Plaza. Associates, LLC. If Hutton Ranch Plaza Associates, LLC fails to complete the specified improvements in the Hutton Ranch Plaza Phase I, within the time period set forth in the attached Improvements Agreement, we will pay on demand your draft or drafts for such funds, to the limit of credit set forth herein, as are required to complete said improvements. All drafts must indicate the number and date of this Letter of Credit and be accompanied by a signed statement of an authorized official, that the amount is drawn to install improvements not installed in conformance with the Improvement Agreement and specifying the default or defect in question. All drafts must be presented prior to the expiration date stated above, and this Letter of Credit must accompany the final draft for payment. This letter may not be withdrawn or reduced in any amount prior to its expiration date except by your draft or written release. Unless otherwise expressly states, this Letter of Credit is subject to the Montana Uniform Commercial Code and the Uniform Custom and Practice for the Documentary Credits (1993 Revision) International Chamber of Commerce Document No. 500. Sincerely, Dennis S. Beams Executive Vice President Glacier Bank LACIER c�COPY� ANK I : C '9 a � ! :: R a W0 0 V Dl :Z�T�CIi.� Dl l� Y'11 Letter of Credit No. 1-06-284 Dated: April 25, 2006 Expiration Date: July 31, 2007 Amount: $2,303,875.00 Kalispell City Council City of Kalispell PO Box 1997 Kalispell, MT 59901 We hereby establish in your favor an Irrevocable Letter of Credit up to the aggregate amount of $2,303,875.00 at the request of Hutton Ranch Plaza Associates, LLC. If Hutton Ranch Plaza Associates, LLC fails to complete the specified improvements in the Hutton Ranch Plaza Phase I, within the time period set forth in the attached Improvements Agreement, we will pay on demand your draft or drafts for such funds, to the limit of credit set forth herein, as are required to complete said improvements. All drafts must indicate the number and date of this Letter of Credit and be accompanied by a signed statement of an authorized official, that the amount is drawn to install improvements not installed in conformance with the Improvement Agreement and specifying the default or defect in question. All drafts must be presented prior to the expiration date stated above, and this Letter of Credit must accompany the final draft for payment. This letter may not be withdrawn or reduced in any amount prior to its expiration date except by your draft or written release. Unless otherwise expressly states, this Letter of Credit is subject to the Montana Uniform Commercial Code and the Uniform Custom and Practice for the Documentary Credits (1993 Revision) International Chamber of Commerce Document No. 500. Sincerely, Dennis S. Beams Executive Vice President Glacier Bank