20231208_ISLOC

WACCAMAW
BANK
MDOM FDIC
Irrevocable Standby Letter of Credit No. 1088
November 9,2009
$282400.00 RECEIVED
State of North Carolina
Department of Environment and Natural Resources �'.11 � 3 2�'��
1612 Mail Service Center -.0
Raleigh, NC 27699-1612 [.AND 01 AL:77 ,
Applicant: Wayne's Backhoe Service, Inc.
20 Thomasboro Road
Calabash, NC 28467
Brunswick County
Mining Permit No. 10-62
To Whom It May Concern:
1) The APPLICANVOPERATOR desires to engage in mining operations within the
State of North Carolina, under the provisions of the Mining Act of 1971,N.C. Gen. Stat. 74-46,
et seg., and the administrative rules promulgated there under.
2) N. C. Gen. Stat. 74-50 requires that operators engaged in mining shall first obtain an
operating permit from the N. C. Department of Environment and Natural Resources ("DENR")
which covers the affected land and which has not terminated, been revoked, been suspended for
the period in question, or otherwise become invalid. N. C. Gen. Stat. 74-54 requires that each
applicant for an operating permit, or for the renewal thereof, shall file with DENR, and shall
thereafter maintain in force, a bond in favor of the State of North Carolina in an amount as
prescribed by Title 15A N.C. Administrative Code Subchapter 5B.0003. N. C. Gen. Stat. 74-54
further provides that in lieu of the surety bond, an applicant or operator may file with DENR a
cash deposit, negotiable securities, or an assignment of a savings account in a North Carolina
bank.
3) Thus, this IRREVOCABLE STANDBY LETTER OF CREDIT is issued to DENR, in
lieu of the surety bond required to be files by the APPLICANT/OPERATOR, as provided by N.
C. Gen. Stat. 74-54.
4) The undersigned hereby establishes its IRREVOCABLE STANDBY LETTER OF
CREDIT in favor of DENR,,for the account of Wayne's Backhoe Service, Inc. for the amount of
Twenty-Eight Thousand Four Hundred Dollars and no 100's ($28,400.00), available by DENR's
draft(s) drawn on sight.
5) This IRREVOCABLE STANDBY LETTER OF CREDIT shall expire on November
9, 2010. 7`he expiration date shall be extended automatically fora period of one year on
November 9, 2010 and on each successive expiration date, unless, at.least sixty(60) days prior to
the expiration date, the undersigned notifies DENR and the OPERATOR by certified mail, return
A WACCAMW BANKSHARES BANK NASDAQ SYMBOL: \t'BNK %VW7V-W-ACCAN1AWBANK.00M
200 SMITH AVENUE PO BOX 2241 S�-aLUOTTE, NC 28459

receipt requested that the undersigned will not extend this letter of credit beyond the current
expiration date. If the undersigned notifies DENR that this letter of credit will not be extended,
any unused portion of the credit shall be available upon presentation of DENR's sight draft
within sixty(60) days after DENR's or the OPERATOR's receipt of such notification, whichever.
is later.
6) This IRREVOCABLE STANDBY LETTER OF CREDIT is nontransferable.
7) Draft(s) shall be marked"Drawn Under Waccamaw Bank Credit No.1088 "and shall
include the following documentation:
(a) A signed certificate by DENR, referring to the effective date and Number of
this IRREVOCABLE STANDBY LETTER OF CREDIT, and stating that:
"In accordance with N. C. Gen. Stat. 74-59, we have received a notice of
forfeiture of part or all of the-Bond amount. The amount of our drawing does
not exceed the amount of the forfeiture as set forth in such notice.";
or
(b) A signed certificate by DENR, referring to the effective date and Number of
this IRREVOCABLE STANDBY LETTER OF CREDIT, and stating that:
"We have received from Waccamaw Bank written notice stating(1) that this
IRREVOCABLE STANDBY LETTER OF CREDIT has not been renewed;
and, (2) that the amount of our drawing does not exceed the Bank Amount,
less any previous forfeitures thereunder, pursuant to notices received in
accordance with N.C. Gen. Stat. 74-59.",
or
(c) A signed certificate by DENR, referring to the effective date and Number of
this IRREVOCABLE STANDBY LETTER OF CREDIT, and stating that:
"We have received from Waccamaw Bank written notice stating(1)that there
exists an Event of Default under the Credit Agreement(as defined in the
IRREVOCABLE STANDBY LETTER OF CREDIT); (2) that a drawing
should be made under this IRREVOCABLE STANDBY LETTER OF
CREDIT; and (3) that the amount of the drawing does not exceed
the bond amount, less any previous forfeitures thereunder, pursuant to notices
received in accordance with N.C. Gen. Stat. 74-59."
8) This IRREVOCABLE STANDBY LETTER OF CREDIT is subject to the Uniform
Customs and Practice for Documentary Credits (1992 Revision), International Chamber of
Commerce Publication No. 500 and the laws of the State of North Carolina. In the event of any
conflict, the laws of the State of North Carolina will control.
9) Waccamaw Bank hereby agrees with the drawers, endorsers, and bona fide holders
that all drafts drawn under and in compliance with the terms of this IRREVOCABLE

STANDBY LETTER OF CREDIT will be duly honored upon presentation to this bank/issuing
institution.
Very truly yours,
Waccamaw Bank
Dianne F. McRainey
Vice President
November 9, 2009
Sworn and subscribed to before me this the 9th day of November, 2009.
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