SILVER POINT FINANCE, LLC
Two Greenwich Plaza
Greenwich, CT 06830

Dated as of March 19, 2008

Equity Media Holdings Corporation, as Borrower Representative
1 Shackleford Drive, Suite 400
Little Rock, Arkansas 72111
Attention: Larry E. Morton, President
Fax No.: (501) 221-1101

Re:
First Amendment to Third Amended and Restated Credit Agreement and Forbearance
Agreement of even date herewith (the "First Amendment") amending the Third
Amended and Restated Credit Agreement dated as of February 13, 2008 (as amended,
supplemented and joined, the "Credit Agreement") among EQUITY MEDIA HOLDINGS
CORPORATION, as successor by merger to Equity Broadcasting Corporation ("EMHC"),
certain of EMHC's affiliates (together with EMHC, "Borrowers"), SILVER POINT
FINANCE, LLC, as administrative agent and documentation agent (in such capacity,
"Administrative Agent"), WELLS FARGO FOOTHILL, INC., as collateral agent (in
such capacity, "Collateral Agent", and together with Administrative Agent, the
"Agents"), and the lenders that are from time to time parties thereto (each a
"Lender" and collectively the "Lenders").

 
Ladies and Gentlemen:
 
This letter agreement (this "Agreement") is the First Amendment to Side Letter
Agreement referred to in the First Amendment. Unless otherwise indicated, all
capitalized terms used but not defined herein shall have the meanings assigned
to such terms in the Credit Agreement.
 
For good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, and to induce the Agents and Lenders to enter into the
First Amendment, the parties hereto hereby amend the terms of that certain Side
Letter Agreement dated as February 13, 2008 (the "Side Letter Agreement") as
follows:
 
1, Section I Amendments. Paragraphs (a) and (b) of Section I of the Side Letter
Agreement are hereby amended to read in their entirety as follows:
 
"(a) Within the time frames set forth in the chart below, Borrowers shall
deliver to Agents, and maintain in full force and effect through closing
thereunder, executed bona fide purchase agreements with third parties for
Dispositions of Stations that will generate, in the aggregate, minimum Net Cash
Proceeds as follows:
 

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Not later than the Date that is::
 
Minimum Aggregate
Net Cash
Proceeds:
 
March 30, 2008
 
$
7,500,000
 
Two Months after March 17, 2008
 
$
10,000,000
 
Four (4) months after March 17, 2008
 
$
20,000,000
 
Six (6) months after March 17, 2008
 
$
30,000,000
 
Eight (8) months after March 17, 2008
 
$
40,000,000;
 

 
"(b) Within the time frames set forth in the chart below, Borrowers shall close
on Dispositions of Stations that will generate, in the aggregate, minimum Net
Cash Proceeds as follows:

Not later than the Date that is:
 
Minimum Aggregate
Net Cash
Proceeds:
 
Four (4) months after March 17, 2008
 
$
7,500,000
 
Five (5) months after March 17, 2008
 
$
10,000,000
 
Seven (7) months after March 17, 2008
 
$
20,000,000
 
Nine (9) months after March 17, 2008
 
$
30,000,000
 
Eleven (11) months after March 17, 2008
 
$
40,000,000"
 

 
2. Section III Amendments. Section III of the Side Letter Agreement is hereby
amended to read in its entirety as follows:
 
"III. Financial Officers. Borrowers shall, at any time after the earlier of (a)
April 18, 2008, and (b) the date of any Termination Event, upon the Required
Lenders' or Administrative Agent's request, hire a financial advisor and/or
chief restructuring officer at Borrowers' cost and expense, provided, that such
date shall be extended to April 30, 2008 if EMHC issues additional Equity
Securities or Indebtedness permitted by the Credit Agreement and receives cash
proceeds of $5,000,000 in exchange therefor prior to March 28, 2008. Such
financial advisor and/or chief restructuring officer shall be selected and hired
by EMHC, shall be reasonably acceptable to Agents and shall have duties and
rights reasonably satisfactory to Agents. Borrowers shall commence the selection
process for such parties promptly after the earlier to occur of (a) March 28,
2008, and (b) the occurrence of a Termination Event."
 

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3. Additional Definition. (a) The following definition is hereby added to the
Side Letter Agreement as Section III-A (other than the Designated Defaults as
defined in the First Amendment):
 
"For the purpose of this Agreement, “Termination Event” shall mean the
occurrence of any one or more of the following events:
 
(a) any misrepresentation by Borrowers made in the Credit Agreement or this
letter, as amended, supplemented or otherwise modified from time to time;
 
(b) any default by any Person other than an Agent or any Lender in the due
observance or performance of, or compliance with, any covenant, condition or
agreement contained in the Credit Agreement or this letter, as the same may be
amended, supplemented or otherwise modified from time to time;
 
(c) the occurrence of a Default or an Event of Default under Article VIII of the
Credit Agreement (other than a Default under paragraph (d)(ii) of Article VIII
by reason of any default by Borrowers in earning minimum required levels of
Minimum Revenues and EBITDA under Section 5.06(a) of the Credit Agreement for
the month of February 2008)."
 

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(b) A new Exhibit A is hereby added to the Side Letter Agreement to read in its
entirety in the form of Exhibit A attached hereto and made a part hereof.
 
4. Miscellaneous Provisions. 
 
(a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS
OF LAW THAT REQUIRE OR PERMIT APPLICATION OF THE LAWS OF ANY OTHER STATE OR
JURISDICTION.
 
(b) Borrowers acknowledge and agree that, a failure to comply in all respects
with the terms of the Side Letter Agreement, as amended hereby, shall constitute
an Event of Default under the Credit Agreement and the other Loan Documents.
 
(c) This Agreement shall, for all purposes, constitute a Loan Document.
 
(d) This Agreement may be executed in any number of counterparts, each of which
shall be an original but all of which together shall constitute one instrument.
Each counterpart may consist of a number of copies hereof, each signed by less
than all, but together signed by all, of the parties hereto.
 
(e) Any signature delivered by a party by facsimile transmission shall be deemed
to be an original signature hereto.
 
(f) By signing this Agreement, Borrowers agree to be bound by the terms and
conditions hereof.
 
(g) Except as amended hereby, the Side Letter Agreement shall remain in full
force and effect and is in all respects hereby ratified and affirmed.
 
(Signatures begin on the next page.)
 

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Very truly yours,
 
WELLS FARGO FOOTHILL, INC., as
Collateral Agent and a Lender
 
By:
_____________________________________  
Print Name: ____________________________________
 
Title: _________________________________________
   
SILVER POINT FINANCE, LLC, as
Administrative Agent and Documentation Agent
   
By:
_____________________________________  
Print Name: ____________________________________
 
Title: _________________________________________
   
SPF CDO I, LTD., as a Lender
   
By:
_____________________________________  
Print Name: ____________________________________
 
Title: _________________________________________
   
SPCP GROUP, LLC, as a Lender
   
By:
_____________________________________  
Print Name: ____________________________________
 
Title: _________________________________________
   
FIELD POINT III, LTD., as a Lender
   
By:
_____________________________________  
Print Name: ____________________________________
 
Title: _________________________________________
   
FIELD POINT IV, LTD., as a Lender
   
By:
_____________________________________  
Print Name: ____________________________________
 
Title: _________________________________________

 

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Accepted and agreed as of the day and year first above written.
 
BORROWERS:
EQUITY MEDIA HOLDINGS CORPORATION
 
By:
___________________________  
Print Name: ___________________________
 
Title: _______________________________

ARKANSAS 49, INC.
BORGER BROADCASTING, INC.
DENVER BROADCASTING, INC.
EBC HARRISON, INC.
EBC PANAMA CITY, INC.
EBC POCATELLO, INC.
EBC SCOTTSBLUFF, INC.
EBC ST. LOUIS, INC.
EQUITY NEWS SERVICES, INC.,

 
f/k/a Hispanic News Network, Inc.

FORT SMITH 46, INC.
LA GRANDE BROADCASTING, INC.
LOGAN 12, INC.
MARQUETTE BROADCASTING, INC.
MONTGOMERY 22, INC.
NEVADA CHANNEL 3, INC.
NEWMONT BROADCASTING CORPORATION
PRICE BROADCASTING, INC.
PULLMAN BROADCASTING INC.
REP PLUS, INC.
RIVER CITY BROADCASTING, INC.
ROSEBURG BROADCASTING, INC.
SHAWNEE BROADCASTING, INC.
TV 34, INC.
VERNAL BROADCASTING, INC.
WOODWARD BROADCASTING, INC.
EBC MINNEAPOLIS, INC.
EBC DETROIT, INC.
EBC BUFFALO, INC.
EBC WATERLOO, INC.
EBC ATLANTA, INC.
EBC SEATTLE, INC. 
EBC KANSAS CITY, INC.
EBC SYRACUSE, INC.
 

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NEVADA CHANNEL 6, INC.
EBC PROVO, INC.
EBC SOUTHWEST FLORIDA, INC.
EBC LOS ANGELES, INC.
EBC BOISE, INC.
C.A.S.H. SERVICES, INC. f/k/a Skyport
Services, Inc.
EBC NASHVILLE, INC.
EBC JACKSONVILLE, INC.

By:
_____________________________  
James Hearnsberger
 
Vice President of Each

 

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