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Falcon Cable Letter of Credit BankofAmerica ~ 'l~ (~; PAGE: 1 DATE: JANUARY 14, 2002 IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER: 3045406 BENEFICIARY CITY OF GILROY ATTN: CITY MANAGER 7351 ROSANNA ST. GILROY, CA 95020 APPLICANT FALCON CABLE COMMUNICATIONS LLC 12405 POWERS COURT DR. ST. LOUIS, MO 63131 AMOUNT NOT EXCEEDING USD 25,000.00 NOT EXCEEDING TWENTY FIVE THOUSAND AND 00/100'S US DOLLARS EXPIRATION FEBRUARY 4, 2003 AT OUR COUNTERS THIS LETTER OF CREDIT IS EFFECTIVE FEBRUARY 4, 2002. WE HEREBY ESTABLISH IN YOUR FAVOR OUR IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER 3045406 WHICH IS AVAILABLE WITH BANK OF AMERICA, N.A. BY PAYMENT AGAINST PRESENTATION OF THE ORIGINAL OF THIS LETTER OF CREDIT AND YOUR DRAFTS AT SIGHT DRAWN ON BANK OF AMERICA, N.A., ACCOMPANIED BY THE DOCUMENT DETAILED BELOW: A SIGNED STATEMENT BY A PURPORTED OFFICER OF THE BENEFICIARY STATING THAT: "I) FALCON CABLE COMMUNICATIONS, LLC OR AN AFFILIATE (COLLECTIVELY "CHARTER") HAS BREACHED ITS OBLIGATIONS UNDER THE FRANCHISE AGREEMENT BETWEEN THE CITY OF GILROY, CA AND CHARTER (THE "FRANCHISE AGREEMENT") AND BENEFICIARY IS ENTITLED THEREUNDER TO PRESENT THIS DRAFT AND DRAW UPON THE LETTER OF CREDIT, II) THE AMOUNT OF THE ACCOMPANYING DRAFT DOES NOT EXCEED THE AMOUNT WHICH IS DUE AND PAYABLE BY CHARTER TO THE BENEFICIARY UNDER THE FRANCHISE AGREEMENT, AND III) CHARTER HAS FAILED TO PAY SUCH AMOUNT WHEN DUE. SUCH AMOUNTS SHALL BE PAID BY WIRE TRANSFER TO THE FOLLOWING BANK AND ACCOUNT: " . THIS LETTER OF CREDIT SHALL BE DEEMED AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR A PERIOD OF ONE (1) YEAR FROM THE PRESENT OR ANY FUTURE EXPIRATION DATE, UNLESS AT LEAST 30 DAYS PRIOR TO ANY EXPIRATION DATE, WE NOTIFY YOU BY REGISTERED MAIL OR OVERNIGHT COURIER SERVICE AT THE ABOVE ADDRESS, THAT WE ELECT NOT TO CONSIDER THIS LETTER OF CREDIT RENEWED FOR ANY SUCH ADDITIONAL PERIOD. WE HEREBY ENGAGE WITH YOU THAT DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS LETTER OF CREDIT WILL BE DULY HONORED UPON PRESENTATION, AS SPECIFIED HEREIN. THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES 1998, ICC PUBLICATION NO. 590. IF YOU REQUIRE ANY ASSISTANCE OR HAVE ANY QUESTIONS REGARDING THIS TRANSACTION, PLEASE CALL 213-345-6630. Bank of America, N.A. Trade Operations Mail Code: CA9-703-19-09 333 S. Beaudry Avenue, 19th Floor, Los Angeles, CA 90017 ORIGINAL 00-35-0202NSB 9-1999_CA9 19 #. ~.) Recycled Paper