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k Dc\.i.Y LTD.
<br />'Thomas Da, Orel l"ghton,, Esq.
<br />September 26, PI 198'6
<br />P a, 21 el 2
<br />6
<br />Central recolg�nizes, that bj,at noncompliance may sect North
<br />Central to penalties and other, remedies provided in the
<br />franchises.
<br />2. North, Central will not in:Ltiate with any of the Commissions,
<br />or their member Cities,, d i scussialons, of changes 'in the
<br />c mm,uni,ty programming requirements of the franichises, prior to
<br />one year from June, 191861, if ever. June, 1986, is the date
<br />is -
<br />upon which Hau se r Communi cat loins, Inca became responsible as
<br />manager,, for the operation of the cabins television systems of
<br />the ablove-referenced commissions.,
<br />#I
<br />3, North Central confirms that its oibiligations under the
<br />f'ran,chis�esi are guaranteled, by the pierformiancle bonds and
<br />leittefins of cred3 I t now *in, pilace. The performance bionds for,
<br />the hour above, referenced commissions, total $9vOOO,OOO, In
<br />add itiont letters of credit availabile to the four commissions
<br />total $383, 0. These blonds, and letters of credit are0o *in
<br />turn,,, guaranteed by Cant rental Ciab ,lei ision, Inic. Hauser
<br />Communications e, Inca guarantees to Continental 50% of the
<br />total amount. (See Coat inenta1-Hauser Agreement, S 10.11.)
<br />T' a blonds, and letters of cireldit "in the respective commission
<br />areas total. .
<br />Bonds, Letters of Credit
<br />BlurIn,svI i 1le/Eagan 400 ,O 601000
<br />North, Central Sublurban 31, 2001 ,, O� O� 10 ,000
<br />North Suburban 5?000f000 18 5 000
<br />Quad Cities 4 0 01 1 000 4 0 ,000
<br />$9,000 1 0 0 0 1$ 3 8 3 10 0 0
<br />4 a Contil''nental Cabilevisliont Inca, has g�uarianteed that it will.
<br />provide, $10,000,000 of equ,3".1ty capitalization to North Central
<br />Ca,bile Communications Corpoirlat ion al In, alddit illonir Continental
<br />Cablevis ion , Inc ., has available, to purchase the cap 141tal
<br />stock olf the subs id karies and for other business purposes F up
<br />to an additional $3o,0001#0001, pursuant to 5 1.16 of the
<br />Continental-Hauser, Agreement, entitled "Continental
<br />Guarantee" al See, Continental letter of Septlembler, 16,r 1986
<br />(Attachment,A).
<br />5 North Central confirms that in the event that further
<br />additional funding is required, 'it expects to have adequate
<br />k fI
<br />addi'ti'Lanal borrowing CapiaClity available. This additional
<br />borrowling ca,plac�i-ty arises from the fact that North Central
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<br />expects to, be, 'in a posit ion to, obtain senior credits over and
<br />
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