<PAGE>
 
                                                                    EXHIBIT 10.7

 
                                                                   Draft 3/13/98


                          AGREEMENT AND PLAN OF MERGER

                                     AMONG

                     SULLIVAN BROADCASTING COMPANY II, INC.

                        SINCLAIR BROADCAST GROUP, INC.,

                                      and

                              ABRY PARTNERS, INC.
                        (as Stockholder Representative)



                                EFFECTIVE AS OF

                               FEBRUARY 23, 1998
<PAGE>
 
                          AGREEMENT AND PLAN OF MERGER


          THIS AGREEMENT AND PLAN OF MERGER is entered into on March 16, 1998,
but is effective as of March 16, 1998, among Sullivan Broadcasting Company II,
Inc., a Delaware corporation ("Sullivan"), Sinclair Broadcast Group, Inc., a
                               --------                                     
Maryland corporation ("Sinclair"), on behalf of itself and a subsidiary to be
                       --------                                              
formed by it pursuant to Article I below, and ABRY Partners, Inc., a Delaware
corporation ("ABRY Partners"), solely in its capacity as the Stockholder
              ---- --------                                             
Representative referred to in this Agreement.

          WHEREAS, the parties to this Agreement are among the parties to an
Agreement and Plan of Merger dated as of February 23, 1998 (the "Prior
                                                                 -----
Agreement"), and the parties to the Prior Agreement have agreed to restate the
---------                                                                     
Prior Agreement by entering into this Agreement and certain other agreements;

          NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION,  the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows,
effective as of the date of the Prior Agreement:



                                   ARTICLE I

                            FORMATION OF SUBSIDIARY

On or prior to March 20, 1998, Sinclair will form a wholly-owned Subsidiary
which will be a Delaware corporation.  Such Subsidiary will be the "Merger Sub"
referred to in this Agreement.  Sinclair will cause such Subsidiary to become a
party to this Agreement and the Indemnity Escrow Agreement by executing and
delivering to Sullivan a counterpart thereof.


                                   ARTICLE II

                                     MERGER

          2.A  General.  Upon and subject to the terms and conditions stated in
               -------                                                         
this Agreement, on the Closing Date, effective as of the Effective Time, the
Merger Sub will merge with and into Sullivan in accordance with the terms and
conditions of this Agreement.  Sullivan will be the corporation which survives
such merger  (the "Merger") and in such capacity is sometimes referred to in
                   ------                                                   
this Agreement as "Post-Merger Sullivan."
 
          2.B  Effect on Sullivan Shares.  Immediately after the Closing,
               ------ -- -------- ------                                 
effective at the Effective Time, subject to the terms and conditions of this
Agreement (1) the Merger will be effected by the filing with the Secretary of
the State of Delaware of a Certificate of Merger; (2) each Sullivan Share
outstanding at the Effective Time, by said occurrence and with no further action
on the part 


                                       
<PAGE>
 
of the holder thereof, will be canceled without consideration; (3) each share of
common stock of the Merger Sub outstanding immediately prior to the Effective
Time will, by said occurrence and with no further action on the part of the
holder thereof, be transformed and converted into one share of common stock of
Post-Merger Sullivan, so that immediately thereafter Sinclair will be the sole
and exclusive owner of all equity securities of Post-Merger Sullivan; and (4)
Post-Merger Sullivan will be the owner of the business, assets, rights,
privileges, immunities, powers, franchises and other attributes of Sullivan and
the Merger Sub.

          2.C  Certificate of Incorporation.  Immediately after the Effective
               ----------- -- -------------                                  
Time, the certificate of incorporation of Post-Merger Sullivan will be the
certificate of incorporation of the Merger Sub as in effect immediately prior to
the Effective Time.

          2.D  Bylaws.  Immediately after the Effective Time, the bylaws of 
               ------ 
Post-Merger Sullivan will be the bylaws of the Merger Sub as in effect
immediately prior to the Effective Time.

          2.E  Board of Directors and Officers.  The board of directors and
               ----- -- --------- --- --------                             
officers of the Merger Sub immediately prior to the Effective Time will be the
board of directors and the officers, respectively, of Post-Merger Sullivan
immediately after the Effective Time, and such individuals will serve in such
positions for the respective terms provided by applicable Legal Requirements or
in the bylaws of Post-Merger Sullivan until their respective successors are
elected and qualified.

          2.F  Name.  The name of Post-Merger Sullivan will be designated by
               ----                                                         
Sinclair.

          2.G  Transfer of Sullivan Stock.  At the Effective Time, the stock
               -------- -- -------- -----                                  
transfer books of Sullivan will be closed and no transfer of Sullivan Shares
will thereafter be made.


                                  ARTICLE III

                        MERGER CONSIDERATION AND CLOSING


          3.A  Merger Consideration.  No consideration will be payable to the
               ------ -------------                                          
holders of Sullivan Shares by reason of or in connection with the Merger.

          3.B  Closing Time and Place.  Subject to Section 12.A, the
               ------- ---- --- -----                               
consummation of the Merger (the "Closing") will be held in the offices of
                                 -------                                 
Kirkland & Ellis, in New York, New York, at 10:00 a.m., local time, on the date
determined pursuant to the following two sentences, or at such other place
and/or at such other time and date as the Merger Sub and Sullivan 


                                       2
<PAGE>
 
may agree in writing. The Merger Closing will occur on a date designated by the
Merger Sub by written notice to Sullivan not less than ten Business Days in
advance of such date (which designated date will be not later than the
Expiration Date). Notwithstanding the foregoing, but subject to Section 12.A, if
on a date for the Closing described in the preceding sentence or specified
pursuant to this sentence any condition of the Merger Sub or Sullivan specified
in Article IX or X has not been satisfied (and will not be satisfied by the
delivery of documents at the Closing) or waived in writing, then the date for
the Closing will be extended to any date specified by the Merger Sub to Sullivan
with not less than 10 Business Days' notice to the other (subject to the Merger
Sub's and Sullivan's respective conditions to the Closing set forth in Articles
IX and X being satisfied or waived in writing on such specified date); provided
                                                                       --------
that any such specified date will be on or prior to the Expiration Date.
 
          3.C  Deliveries at the Closing.  All actions on the Closing Date
               ---------- -- --- -------                                  
(including those described in Section 11.D) will be deemed to occur
simultaneously, and no document or payment to be delivered or made on the
Closing Date will be deemed to be delivered or made until all such documents and
payments are delivered or made to the reasonable satisfaction of Sullivan, the
Merger Sub, the Stockholder Representative and their respective legal counsel.

               (1)  Deliveries by Sullivan.  At the Closing, Sullivan will
                    ---------- -- --------                                
     deliver to the Merger Sub the following:
 
                    (a) the minute book, stock transfer book and other records
          relating to the internal corporate affairs of Sullivan which are in
          Sullivan's possession, and resignations of the officers and directors
          of Sullivan, which resignations will be effective as of the Effective
          Time;
 
                    (b) all mortgage discharges or releases of Liens, if any,
          that will be sufficient to cause the Station Assets held by Sullivan
          to be as described in Section 4.E;

                    (c) a certificate of the President or Chief Executive
          Officer of Sullivan dated the Closing Date to the effect that, except
          as specified in such certificate, to the best of such officer's
          knowledge, the conditions set forth in Sections 10.A(1) and 10.A(2)
          have been fulfilled;

                    (d) a certificate of Sullivan dated the Closing Date to the
          effect that, except as specified in such certificate, the conditions
          set forth in Sections 10.A(1) and 10.A(2) have been fulfilled;

                    (e) a certified copy of the resolutions or action by written
          consent of the board of directors and stockholders of Sullivan
          authorizing the Merger and Sullivan's execution, delivery and
          performance of this Agreement;


                                       3
<PAGE>
 
                    (f) certificates as to the existence and/or good standing of
          Sullivan, in each case issued by the Secretary of State or a
          comparable official of Delaware and each other jurisdiction (if any)
          in which it is then required to be qualified to do business,
          certifying as to the existence and/or good standing of such
          corporation in such jurisdictions;

                    (g) one or more opinions of counsel or special counsel to
          Sullivan, each dated the Closing Date, as to the matters set forth in
          the attached Exhibit A; and
                       ------- -

                    (h) such other documents, instruments and receipts as the
          Merger Sub may reasonably request in order to effectuate the Merger
          and the other transactions contemplated by this Agreement to be
          consummated at the Closing.

     Each of the foregoing will be reasonably satisfactory in form to the Merger
     Sub and its legal counsel.

               (2)  Deliveries by the Merger Sub. At the Closing, the Merger Sub
                    ---------- -- --- ----------
     will deliver to the Stockholder Representative the following:

                    (a) a certificate of an officer or similar official of the
          Merger Sub dated the Closing Date to the effect that, except as
          specified in such certificate, to the best of such officer's or
          official's knowledge, the conditions set forth in Sections 9.A(1) and
          9.A(2) have been fulfilled;

                    (b) a certificate of an officer or similar official of
          Sinclair dated the Closing Date to the effect that, except as
          specified in such certificate, to the best of such officer's or
          official's knowledge, the conditions set forth in Sections 9.A(1) and
          9.A(2) have been fulfilled;

                    (c) a certificate of the Merger Sub dated the Closing Date
          to the effect that, except as specified in such certificate, the
          conditions set forth in Sections 9.A(1) and 9.A(2) have been
          fulfilled;

                    (d) a certificate of Sinclair dated the Closing Date to the
          effect that, except as specified in such certificate, the conditions
          set forth in Sections 9.A(1) and 9.A(2) have been fulfilled;

                    (e) a certified copy of the resolutions or action by written
          consent of the board of directors and stockholders of the Merger Sub
          authorizing the Merger and the Merger Sub's execution, delivery and
          performance of this Agreement;

                    (f) a certified copy of the resolutions or action by written
          consent of the board of directors of Sinclair authorizing Sinclair's
          execution, delivery and 


                                       4
<PAGE>
 
          performance of this Agreement;

                    (g) certificates as to the existence and/or good standing of
          Sinclair and the Merger Sub, in each case issued by the Secretary of
          State or a comparable official of such jurisdictions as Sullivan may
          reasonably request and dated on or after the fifth Business Day prior
          to the Closing Date, certifying as to the existence and/or good
          standing of such corporation in such jurisdictions;
 
                    (h) one or more opinions of counsel or special counsel to
          Sinclair and the Merger Sub, each dated the Closing Date, as to the
          matters set forth in the attached Exhibit B; and
                                            ------- -     

                    (i) such other documents, instruments and receipts as
          Sullivan may reasonably request in order to effectuate the Merger and
          the other transactions contemplated by this Agreement to be
          consummated at the Closing.

     Each of the foregoing will be reasonably satisfactory in form to Sullivan
     and its legal counsel.


                                   ARTICLE IV

                   REPRESENTATIONS AND WARRANTIES OF SULLIVAN
                                        
          Subject to Section 13.Q, Sullivan makes the following representations
and warranties:

          4.A  Organization. Sullivan is a corporation which is duly organized,
               ------------                                                    
validly existing and in good standing under the laws of the State of Delaware.
From and after the Spin-Off,  Sullivan will be qualified to do business or have
similar status under the laws of each jurisdiction in which such qualification
is required by applicable Legal Requirements.  Sullivan has the power and
authority to carry on the business being conducted by it, to own and operate the
Station Assets owned and operated by it, and to enter into and consummate the
transactions contemplated to be consummated by it pursuant to this Agreement.

          4.B  Action. Each action necessary to be taken by or on the part of
               ------                                                        
Sullivan in connection with the execution and delivery of this Agreement and the
consummation of the transactions contemplated to be consummated by Sullivan
pursuant to this Agreement and necessary to make the same effective will be duly
and validly taken by, and be effective at, the time by which such action is
required to be taken. This Agreement has been duly and validly authorized,
executed, and delivered by Sullivan and constitutes its valid and binding
agreement, enforceable against Sullivan in accordance with and subject to its
terms, subject to the effect of applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, arrangement, moratorium or similar laws
affecting the rights of creditors generally and the availability of equitable
remedies.


                                       5
<PAGE>
 
          4.C  FCC Authorizations.  As of the time of the Closing, Sullivan will
               --- --------------                                               
be the holder of the FCC Authorizations.  As of the time of the Closing, except
as set forth on the attached Schedule 4C, (i) the Authorizations will constitute
                             -------- --                                        
all of the licenses and authorizations required under the Communications Act, or
the current rules, regulations, and policies of the FCC, for the operation of
the Stations as now conducted; (ii) the FCC Authorizations will be in full force
and effect and are subject to or scheduled for renewal on the respective dates
specified on the attached Schedule 4C (unless theretofore renewed after the date
                          -------- --                                           
of this Agreement); (iii) the FCC Authorizations will be valid for the full
respective terms thereof; (iv) Sullivan will have no reason to believe that the
FCC Authorizations will not be renewed for a full and customary term in the
ordinary course with no materially adverse conditions (except with respect to
general rule-making and similar matters relating generally to television
broadcast stations by reason of any action or omission of Sinclair or any of its
Subsidiaries); (v) there will not be not pending, or, to the knowledge of
Sullivan, threatened, any action by or before the FCC to revoke, cancel,
rescind, modify, or refuse to renew in the ordinary course any of the FCC
Authorizations, and there will not be pending, or, to the knowledge of any such
Person, threatened, issued, or outstanding by or before the FCC, any
investigation, order to show cause, notice of violation, notice of apparent
liability, or notice of forfeiture or complaint against Sullivan with respect to
any Station, in each case other than by reason of any actual or alleged action
or omission of Sinclair or any of its Subsidiaries; (vi) Sullivan will have
complied in all material respects with the FCC Authorizations, the
Communications Act, and the current rules, regulations and policies of the FCC;
and (vii) all documents required by 47 C.F.R. Section 73.3526 to be kept in each
Station's public inspection file are in such file and such file will be
maintained in proper order and complete up to and through the Closing Date.
 
          4.D  Condition of Assets.  Except as set forth on the attached
               --------- -- ------                                      
Schedule 4D, the material tangible assets of Sullivan and the improvements on
-------- --                                                                  
any real property which are used by it (a) at the time of the Spin-Off and on
the Closing Date will in all material respects be in good and technically sound
operating condition (ordinary wear and tear excepted) and are not in need of
repair and in a condition which would be sufficient to permit the owner thereof
to operate the Stations (in the manner in which the Stations are operated or
programmed by Sullivan Holdings and its Subsidiaries as of the date of this
Agreement) in compliance with the terms of the FCC Authorizations, the
Communications Act and current FCC rules and regulations (if such owner had the
right to use the Station Assets not owned by Sullivan and such Station Assets
were in at least such condition), and (b) have in all material respects been
maintained in a manner consistent with generally accepted standards of good
engineering practice and to the knowledge of Sullivan, all applicable federal,
state and local statutes, ordinances, rules and regulations, including, without
limitation, all applicable tower painting and lighting requirements.
 
          4.E  Title, Etc.  Immediately after the Spin-Off, Sullivan will have
               ------ ---                                                      
good title to, or a valid leasehold in, the tangible assets  and personal
property included in the Station Assets, and all such assets and personal
property will on the Closing Date (after the repayment in full of the
indebtedness of Sullivan and all related interest and other obligations and the
release of all related Liens and the Mission Guarantees) be free and clear of
all Liens other than Permitted Encumbrances.  


                                       6
<PAGE>
 
Sullivan possesses (and immediately after the Merger, will possess) adequate
rights, licenses, or other authority to use the call letters presently used by
the Stations, free and clear of all Liens other than Permitted Encumbrances.

          4.F  Litigation.   Except as set forth on the attached Schedule 4F:
               ----------                                        -------- -- 
 
               (1) on the date of this Agreement, Sullivan is not operating
     under or subject to or in default with respect to any order, writ,
     injunction, or decree of any court or federal, state, municipal, or other
     governmental department, commission, board, agency, or instrumentality
     arising out of a proceeding to which it is or was a party, and on the
     Closing Date, no such item will have or reasonably be expected to result in
     a Material Adverse Change; and

               (2) on the date of this Agreement, there is no litigation pending
     by or against, or to the knowledge of Sullivan threatened against, Sullivan
     which interferes with, or could reasonably be expected to interfere with,
     (a) the operations of the Stations as presently conducted or (b) the
     ability of Sullivan to carry out the transactions contemplated to be
     carried out by it pursuant to this Agreement, and on the Closing Date, no
     such pending or threatened litigation will have or will reasonably be
     expected to result in a Material Adverse Change.

There are no attachments, executions, or assignments for the benefit of
creditors or voluntary or involuntary proceedings in bankruptcy initiated or
contemplated by, or, to the knowledge of Sullivan, threatened or pending
against, Sullivan.

          4.G  Compliance with Laws.  Other than with respect to matters
               ---------- ---- -----                                     
disclosed in the attached Schedule 4C or the attached Schedule 4F, subject to
                          -------- --                 -------- --            
obtaining all applicable Consents: (a) Sullivan, with respect to the Station
Assets, is in compliance in all material respects with all applicable Legal
Requirements, and (b) the present uses by Sullivan of the Station Assets which
it owns do not in any material respect violate any such Legal Requirements.

          4.H  No Defaults.  Except for (w) any item on the attached Schedule
               -- --------                                           --------
4H, (x) the requisite approval of the FCC, (y) compliance with the requirements
--
of the Hart-Scott-Rodino Act, and (z) any Consent which may be required under
any Contract, on the Closing Date (after giving effect to all Consents which
have been obtained) neither the execution and delivery by Sullivan of this
Agreement, nor the consummation by Sullivan of the Merger or the other
transactions contemplated by this Agreement to be consummated by Sullivan,
requires any Consent under, will constitute, or, with the giving of notice or
the passage of time or both, would constitute, a material violation of or would
conflict in any material respect with or result in any material breach of or any
material default under, or will result in the creation of any Lien (other than
any Permitted Encumbrance or any Lien in favor of one or more of the Acquiring
Parties) under, any of the terms, conditions, or provisions of any Legal
Requirement to which Sullivan is subject, or of the certificate of incorporation
or by-laws of Sullivan.


                                       7
<PAGE>
 
          4.I  Subsidiaries.  Sullivan does not own any shares of stock or other
               ------------                                                     
equity or debt securities of or any interest in any Person.

          4.J  Tax Matters.
               --- ------- 

               (1) Tax Returns.  Except as set forth on the attached Schedule 4J
                   --- -------                                       -------- --
     or as has not caused and is not reasonably expected to cause a Material
     Adverse Change: (a) all federal, state, local and foreign tax returns and
     tax reports required to be filed by Sullivan have been timely filed (taking
     into account any extensions of which Sullivan may have availed itself) with
     the appropriate governmental agencies in all jurisdictions in which such
     returns and reports are required to be filed, and all of the foregoing
     (including any summary balance sheets included therein) are true, correct,
     and complete; (b) all federal, state, local and foreign income, profits,
     franchise, sales, use, occupation, property, excise, and other taxes
     (including interest and penalties) due and payable by Sullivan have been
     fully paid; (c) no issues have been raised in writing (or, to Sullivan's
     knowledge, orally) and are currently pending by the Internal Revenue
     Service or any other taxing authority in connection with any of such
     returns and reports; (d) no waivers of statutes of limitations as to tax
     matters have been given or requested with respect to Sullivan; (e) the
     federal, state, local, and foreign income tax and franchise tax returns of
     or with respect to Sullivan have not been examined by the Internal Revenue
     Service or by appropriate state, provincial, or departmental tax
     authorities; (f) no issue has been raised in writing (or, to Sullivan's
     knowledge, orally) with Sullivan by any taxing authority which can
     reasonably be expected to result in a deficiency for any fiscal year or all
     deficiencies asserted or assessments (including interest and penalties)
     made as a result of any examinations have been fully paid, and no proposed
     (but unassessed) additional taxes, interest, or penalties have been
     asserted; (h) Sullivan is not (and has never been) a party to any Tax
     sharing agreement with any Person who was not a member of an Affiliated
     Group consisting in whole or in part of the parties to such agreement, and
     Sullivan has no liability for the Taxes of any other Person (other than
     Sullivan Holdings and its Subsidiaries) pursuant to Reg. Section 1.1502-6
     under the Tax Code (or any similar provision of state, local or foreign Tax
     law) or as a transferee or successor or by contract.

               (2) Tax Elections and Special Tax Status.  Except as set forth on
                   --- --------- --- ------- --- ------                         
     the attached Schedule 4J:  (a) Sullivan is not and has never been a United
                  -------- --                                                  
     States real property holding corporation within the meaning of Section
     897(c)(2) of the Tax Code during the applicable period specified in Section
     897(c)(1)(A)(ii) of the Tax Code; (b) Sullivan has not made any election or
     filed any consent pursuant to Section 341(f) of the Tax Code relating to
     collapsible corporations; (c) Sullivan has not entered into any
     compensatory agreements with respect to the performance of services which
     payment thereunder would result in a nondeductible expense to Sullivan
     pursuant to Section 280G of the Tax Code or an excise tax to the recipient
     of such payment pursuant to Section 4999 of the Tax Code; and (d) Sullivan
     has not agreed to make, nor is it required to make,  any adjustment under
     Section 481(a) of the Tax Code by reason of a change in accounting method
     or otherwise.


                                       8
<PAGE>
 
          4.K  Capital Stock.  As of the date of this Agreement, Sullivan has
               ------- -----                                                 
authorized capital stock consisting of 80,000,000 shares of capital stock, of
which (a) 25,000,000 shares will be designated Class A One Common Stock, par
value $0.001 per share, (b) 25,000,000 shares will be designated Class B-1
Common Stock, par value $0.001 per share, (c) 25,000,000 shares will be
designated Class B-2 Common Stock, par value $0.001 per share, and (d) 5,000,000
shares will be designated Class C Common Stock, par value $0.001 per share.  As
of the Closing Date, all of the issued and outstanding capital stock of Sullivan
will be duly authorized and validly issued, fully paid and nonassessable, and
there will be no preemptive rights in respect thereof in favor of any Person
(other than any Person which holds Sullivan Shares).  There are no outstanding
options, warrants or other rights to subscribe for or purchase from Sullivan, no
contracts or commitments providing for the issuance of, or the granting of
rights to acquire, and no securities convertible into or exchangeable for, any
shares of capital stock or any other ownership interest of Sullivan.

          4.L  Books and Records. The minute books of Sullivan contain records
               ----- --- -------                                              
which are complete and accurate in all material respects of all meetings and
other corporate actions of its stockholders, its board of directors and all
committees, if any, appointed by its board of directors.  The books of accounts,
ledgers, order books, records and documents of Sullivan, in all material
respects, accurately and completely reflect information relating to its
business, the nature, acquisitions, maintenance and location of its assets and
the transactions giving rise to its obligations and accounts receivable.

          4.M  Absence of Significant Undisclosed Liabilities.  Sullivan has no
               ------- -- ----------- ----------- -----------                  
debt, liability or obligation of any kind, whether accrued, absolute, contingent
or otherwise, including any liability or obligation on account of Taxes or any
governmental charges or penalty, interest or fines, which would be required to
be reflected in its balance sheet prepared in accordance with GAAP and which
would have, or which in the case of contingent or inchoate liabilities, would
have if accrued or absolute, a material adverse effect on the financial
condition of Sullivan, viewed as a whole with Sullivan Holdings, its
Subsidiaries and Sullivan Three as of the Closing Date, other than any liability
or obligation (a) reflected in any Sullivan Holdings Financial Statement, (b)
identified with particularity in any attached Schedule or arising under any
Contract which is described, or which is not required to be described, on any
attached Schedule or the Contracts Schedule, (c) incurred in the ordinary course
of business since September 30, 1997, (d) incurred in connection with the
transactions contemplated by this Agreement, or (e) pursuant to the promissory
note issued to Sullivan Holdings and its Subsidiaries in connection with the
Spin-Off.

          4.N  Employee Benefit Plans.  Other than any plan described on the
               -------- ------- -----                                       
attached Schedule 4N, (a) Sullivan does not  maintain, is not a party to and
         -------- --                                                        
make no contributions to any of the following:  (i) any "employee pension
benefit plan," (as such term is defined in Section 3(2) of the Employee
Retirement Income Security Act of 1974 ("ERISA")); or (ii) any "employee welfare
                                         -----                                  
benefit plan" (as such term is defined in Section 3(a) of ERISA), whether
written or oral; and (b) Sullivan has never sponsored or maintained, had any
obligation to sponsor or maintain, or had any liability (whether actual or
contingent, with respect to any of its assets or otherwise) with respect to any
employee pension benefit plan subject to Section 302 of ERISA or Section 412 of
the Tax Code 


                                       9
<PAGE>
 
or Title IV of ERISA (including any multiemployer plan). No employee or former
employee of Sullivan, and no beneficiary of any such employee or former employee
is, by reason of such employee's or former employee's employment, entitled to
receive any benefits, including death or medical benefits (whether or not
insured) beyond retirement or other termination of employment as described in
Statement of Financial Accounting Standards No. 106, other than continuation
coverage mandated under Section 4980B of the Tax Code or comparable state law.
 
          4.O  Brokers. There is no broker or finder or other Person who would
               -------                                                        
have any valid claim against Sullivan or any Acquiring Party for a commission or
brokerage fee in connection with this Agreement or the transactions contemplated
hereby as a result of any agreement or understanding of or action taken by
Sullivan or any of its Affiliates.

          4.P  Disclosure.  To the knowledge of Sullivan, no statement of a
               ----------                                                  
material fact set forth in this Article IV contains any statement of any
material fact which is untrue in any material respect or omits to state a
material fact which is necessary in order to make the statements set forth in
this Article IV not misleading in any material respect.
 

                                   ARTICLE V

                       REPRESENTATIONS AND WARRANTIES OF
                          SINCLAIR AND THE MERGER SUB

          Sinclair and the Merger Sub, jointly and severally, represent and
warrant as follows:

          5.A  Incorporation.  Sinclair is a corporation duly organized, validly
               -------------                                                    
existing, and in good standing (or has comparable active status) under the laws
of the State of Maryland, and Sinclair has the corporate power and authority to
enter into and consummate the transactions contemplated to be consummated by it
pursuant to this Agreement.  From and after the time it is formed, the Merger
Sub will be a corporation duly organized, validly existing, and in good standing
(or has comparable active status) under the laws of the State of Delaware and
will have the corporate power and authority to enter into and consummate the
transactions contemplated to be consummated by it pursuant to this Agreement.

          5.B  Corporate Action.  Each action necessary to be taken by or on the
               --------- ------                                                 
part of either Sinclair or the Merger Sub in connection with the execution and
delivery of this Agreement and the consummation of transactions contemplated
hereby to be consummated by it and necessary to make the same effective duly and
validly taken by, and be effective at, the time by which such action is required
to be taken.  This Agreement has been duly and validly authorized, executed, and
delivered by each of Sinclair and the Merger Sub and constitutes a valid and
binding agreement, enforceable against each of them  in accordance with and
subject to its terms, subject to the effect of applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance, arrangement, moratorium or
similar laws affecting the rights of creditors generally and the availability of
equitable 



                                      10
<PAGE>
 
remedies.

          5.C  No Defaults.  Except as set forth on the attached Schedule 4H,
               -- --------                                       -------- -- 
the requisite approval of the FCC and compliance with the requirements of the
Hart-Scott-Rodino Act, on the Closing Date (after giving effect to all approvals
and consents which have been obtained), neither the execution and delivery by
Sinclair or the Merger Sub of this Agreement, nor the consummation by Sinclair
or the Merger Sub of the Merger and the other transactions contemplated by this
Agreement to be consummated by it, will constitute, or, with the giving of
notice or the passage of time or both, would constitute, a material violation of
or would conflict in any material respect with or result in any material breach
of or any material default under, any of the terms, conditions, or provisions of
any Legal Requirement to which Sinclair or the Merger Sub is subject, or of
Sinclair's or the Merger Sub's certificate of incorporation or by-laws or
similar organizational documents, or of any material contract, agreement, or
instrument to which Sinclair or the Merger Sub is a party or by which Sinclair
or the Merger Sub is bound.

          5.D  Brokers.  There is no broker or finder or other Person who would
               -------                                                         
have any valid claim against Sullivan (except after the Effective Time) or any
Old Sullivan Stockholder for a commission or brokerage fee in connection with
this Agreement or the transactions contemplated hereby as a result of any
agreement or understanding of or action taken by Sinclair, the Merger Sub or any
Affiliate of any of them.
 
          5.E  Qualification as a Broadcast Licensee.  Sinclair and the Merger
               ------------- -- - --------- --------                        
Sub will, at the time of the filing of the applications for the Required FCC
Consent described in Section 6.A, be legally and financially qualified under the
Communications Act, and the rules and regulations promulgated by the FCC
thereunder, to control Sullivan (in the case of Sinclair) or be the successor by
merger to Sullivan and the holder of the FCC Authorizations (in the case of the
Merger Sub).  To Sinclair's and the Merger Sub's knowledge, no fact exists as of
the date of this Agreement that would, under the Communications Act, the
existing rules, regulations, policies, and practices of the FCC or any other
Legal Requirement, disqualify either Sinclair or the Merger Sub as the direct or
indirect holder of any FCC Authorization or as owner and operator of the related
Station Assets or any related Station.

          5.F  Litigation.  There is no litigation pending by or against, or to
               ----------                                                      
Sinclair's or the Merger Sub's knowledge (after due inquiry) threatened against,
Sinclair or the Merger Sub related to or affecting Sinclair's or the Merger
Sub's ability fully to carry out the transactions contemplated to be consummated
by them pursuant to this Agreement.  There are no attachments, executions, or
assignments for the benefit of creditors or voluntary or involuntary proceedings
in bankruptcy contemplated by, or, to Sinclair's or the Merger Sub's knowledge,
threatened or pending against, Sinclair or the Merger Sub.

          5.G  Disclosure.  To Sinclair's and the Merger Sub's knowledge, no
               ----------                                                   
statement of a material fact set forth in this Article V contains a statement of
any material fact which is untrue in any material respect or omits to state a
material fact which is necessary in order to make the 

                                       11
<PAGE>
 
statements set forth in this Article V not misleading in any material respect.


                                  ARTICLE VI

                     APPLICATIONS FOR REQUIRED FCC CONSENT

          6.A  Preparation and Filing.  Within 30 Business Days after Sinclair's
               ----------- --- ------                                           
or its own written request after the Spin-Off, each of Sullivan and Sinclair
will, and will cause its Subsidiaries to, complete the portions of the
applications for the Required FCC Consent which pertain to it and jointly file
such applications with the FCC.  Each of Sullivan and Sinclair will, and will
cause its Subsidiaries to, diligently take or cooperate in the taking of all
steps which are reasonably within its ability to take and which are necessary,
proper, or desirable to expedite the prosecution of such applications and to
cause the Required FCC Consent expeditiously to become Granted and expeditiously
to become a Final Order.

          6.B  Certain Actions.  Sullivan will refrain from making any filing or
               ------- -------                                                  
announcement or taking (or causing or assisting any other Person to take) any
other action which reasonably could be expected to delay the Required FCC
Consent being Granted or becoming a Final Order in any respect without
Sinclair's prior written consent.  Without limiting Section 6.D, Sinclair will,
and will cause its Subsidiaries to, refrain from making any filing or
announcement or taking (or causing or assisting any other Person to take) any
other action which reasonably could be expected to delay the Required FCC
Consent being Granted or becoming a Final Order in any respect without the prior
written consent of Sullivan (or, after the Closing, the Stockholder
Representative).

          6.C  Notice of Objections, etc.  Sullivan will promptly provide
               ------ -- ----------- ---                                 
Sinclair (or, after the Closing, the Stockholder Representative) with a copy of
any pleading, order, or other document served on Sullivan relating to such
applications (other than any of the same which is addressed to or states that it
is to be served upon or delivered to the Person to whom such copy is to be
provided or such Person's communications counsel).  Sinclair will promptly
provide Sullivan (or, after the Closing, the Stockholder Representative) with a
copy of any pleading, order, or other document served on Sinclair or any of its
Subsidiaries relating to such applications (other than any of the same which is
addressed to or states that it is to be served upon or delivered to the Person
to whom such copy is to be provided or such Person's communications counsel).

          6.D  Prohibited Actions.  Sinclair will not, and will not cause or
               ---------- -------                                           
permit any of its Subsidiaries to, make any "major amendment" (as that term is
used in Section 73.3578(b) of the rules of the FCC (Ch. 47 C.F.R.)) in respect
of any such application other than (i) with prior written consent of Sullivan
(prior to the Closing) or the Stockholder Representative (after the Closing),
(ii) in order to reflect any change in the proposed operating or ownership
structure of the Merger Sub or any Station which the FCC or its staff has
indicated to Sinclair or any Affiliate or agent of Sinclair is a condition to
the Required FCC Consent to be Granted, or (iii) if required by a change in the

                                       12
<PAGE>
 
rules, regulations or policies of the FCC to disclose any attributable interest
which Sinclair or any of its Subsidiaries may be deemed to have by virtue of any
local marketing, time brokerage or similar arrangement in effect on the date of
this Agreement.

                                       13
<PAGE>
 
                                  ARTICLE VII

                             COVENANTS OF SULLIVAN

          7.A  Actions after Spin-Off and prior to Merger.
               ------- ----- -------- --- ----- -- ------ 
 
               (1) Operation Generally.  After the Spin-Off and until the
                   --------- ---------                                   
     Closing, Sullivan will (a) with respect to Station Assets, keep books of
     account, records, and files substantially in accordance with the practices
     of Sullivan Holdings and its Subsidiaries with respect to such assets of
     such type prior to the Spin-Off, (b) promptly execute and timely file any
     applications reasonably required for renewal of the FCC Authorizations, (c)
     timely file (taking into account any extensions of which Sullivan may avail
     itself) true, correct and complete federal, state, local and foreign tax
     returns and tax reports required to be filed by Sullivan, (d) fully pay all
     federal, state, local and foreign income, profits, franchise, sales, use,
     occupation, property, excise and other taxes (including interest and
     penalties) due and payable by Sullivan, (e) to the extent necessary to the
     conduct of its business:  use reasonable efforts to (i) perform its
     obligations under all Station Contracts to which it is a party, (ii)
     preserve the Station Assets held by it, and (iii) maintain in full force
     and effect the FCC Authorizations, and (f) maintain property damage
     insurance in such amounts, and insuring against such risks, as Sinclair may
     reasonably request.

               (2) Contracts.  After the Spin-Off and until to the Closing,
                   ---------                                               
     Sullivan will be entitled to renew or extend the term of any Contract
     which, by its terms, has expired at the time of such renewal or extension
     or which would expire prior to the sixtieth day after the effective date of
     such renewal or extension, and, in connection therewith, to agree to
     increase the amounts payable thereunder during any such renewal or extended
     term in accordance with Sullivan Holdings' and its Subsidiaries' past
     practice in the operation of the Stations, or enter into any other Contract
     which is reasonably required in order to enable it to comply with its
     obligations under this Agreement.

               (3) Restrictions.  After the Spin-Off and until to the Merger
                   ------------                                             
     Closing, Sullivan will not without the prior written consent of Sinclair
     (to the extent the following restrictions are permitted by the FCC and all
     other applicable Legal Requirements):

                   (a) other than in the ordinary course of business, sell,
          lease (as lessor), transfer, or agree to sell, lease (as lessor), or
          transfer any Station Assets which are required for the operation of
          any Station without replacement thereof with a functionally equivalent
          or superior asset of substantially equal or greater value;

                   (b) apply to the FCC for any construction permit that would
          materially restrict any Station's present operations or make any
          material adverse change in the buildings or leasehold improvements
          which constitute Station Assets;

                                       14
<PAGE>
 
                   (c) merge or consolidate, or agree to merge or consolidate,
          with or into any Person;
 
                   (d) enter into any Contract with any of its Affiliates which
          will not be performed in its entirety or by its terms terminate at or
          prior to the time of the Closing;

                   (e) cause any of its assets or properties to become subject
          to any Lien, other than any Permitted Encumbrance;

                   (f) commit any material breach of any material Contract to
          which it is a party; or

                   (g) change any material tax election if such change could
          reasonably be expected to adversely affect Post-Merger Sullivan,
          except to the extent required by any Legal Requirement, any Contract
          or GAAP.

               (4) No Premature Assumption of Control.  Nothing contained in
                   -- --------- ---------- -- -------                       
     this Agreement will give any Acquiring Party any right to control the
     programming, operations, or any other matter relating to the Stations prior
     to the Closing, and Sullivan will have complete control of the programming,
     operations, and all other matters relating to the Stations up to the time
     of the Closing.

          7.B  Organization/Goodwill. After the Spin-Off and until to the
               ---------------------                                     
Closing, Sullivan will use reasonable efforts to preserve the business
organization of Sullivan with respect to the Stations and preserve the goodwill
of the Stations' suppliers, customers, and others, to the extent such Persons
have business relations with Sullivan.  This Section 7.B will not apply to the
Corporate Personnel, with respect to continued service by them after the Closing
(it being understood that the Corporate Personnel intend to resign their
respective positions with Sullivan effective as of the Effective Time).

          7.C  Access to Facilities, Files, and Records.  From time to time at
               ------ -- ----------- ------ --- -------                       
the request of Sinclair after the Spin-Off and prior to the Closing, Sullivan
will give or cause to be given to the officers, employees, accountants, counsel,
and representatives of Sinclair and the Merger Sub
 
                   (a) access (in the presence of any representative designated
          by Sullivan, at Sullivan's option), upon reasonable prior notice,
          during normal business hours, to all facilities, property, accounts,
          books, deeds, title papers, insurance policies, licenses, agreements,
          contracts, commitments, records, equipment, machinery, fixtures,
          furniture, vehicles, accounts payable and receivable, and inventories
          of Sullivan (but, in any event, not personnel, unless Sullivan
          otherwise consents) related to the Stations, including for purposes of
          permitting Sinclair to perform "Phase One" (and, after consulting with
          Sullivan as to the scope thereof, 

                                       15
<PAGE>
 
          "Phase Two") environmental surveys with respect to the Station Assets,
          and

                   (b) all such other information in Sullivan's possession
          concerning the affairs of the Stations as Sinclair may reasonably
          request,

     in each case at Sinclair's expense; provided that the foregoing does not
                                         --------                            
     disrupt or interfere with the business and operations of Sullivan or any
     Station in any material respect ("materiality," for purposes of this
     proviso, being determined by reference to each Station individually, and
     not taken as a whole).

          7.D  Hart-Scott-Rodino Matters.  Within thirty (30) days after
               -------------------------                                
Sinclair's or its own request after the Spin-Off, Sullivan will complete all
documents (if any) required to be filed with the Federal Trade Commission (the
"FTC") and the United States Department of Justice (the "DOJ") with respect to
 ---                                                     ---                  
itself and/or its Affiliate(s) and concerning the Merger in order to comply with
the Hart-Scott-Rodino Act and together with Sinclair and/or the appropriate
Affiliate(s) of Sinclair who are required to join in such filings, will file the
same with the FTC and the DOJ.  Sullivan will promptly furnish all materials
thereafter required by the FTC, the DOJ or any other governmental entity having
jurisdiction over such filings, and will take all reasonable actions and will
file and use reasonable efforts to have declared effective or approved all
documents and notifications with any such governmental entity, as may be
required under the Hart-Scott-Rodino Act or other federal antitrust laws for the
consummation of the Merger.

          7.E  Consents.  Except as provided in Article VI and Section 7.D, it
               --------                                                       
is agreed that (1) as among Sullivan and the Acquiring Parties, it will be the
sole responsibility of the Acquiring Parties to timely obtain all Acquiring
Party Consents, (2) so long as Sullivan complies with its obligations pursuant
to the following sentence and Article VI and Section 7.D, Sullivan, the Old
Sullivan Stockholders and the Stockholder Representative will not be liable to
any Person for any failure to obtain or other absence of any effective Acquiring
Party Consent, and (3) except as provided in Sections 10.C and 10.D, the absence
of any effective Consent will not excuse any Acquiring Party from consummating
the Merger.  Sullivan will use reasonable efforts (without being required to
make any payment not specifically required by the terms of any licenses, leases,
and other contracts), including executing any related agreement or undertaking
which does not take effect until the Effective Time, to obtain the Sullivan
Consents and to assist the Acquiring Parties (at the Acquiring Parties' request
and expense) to (a) timely obtain all Acquiring Party Consents or, in the
absence of any Acquiring Party Consent (where applicable), one or more
replacement agreements, and (b) cause each Consent or replacement agreement to
become effective as of the time of the Spin-Off or the Effective Time, as
applicable.
 
          7.F  Notice of Proceedings.  After the Spin-Off and prior to the
               ---------------------                                      
Closing, Sullivan will promptly notify Sinclair in writing upon becoming aware
of any order or decree or any complaint praying for an order or decree
restraining or enjoining the consummation of the Merger or any other transaction
contemplated by this Agreement to be consummated 

                                       16
<PAGE>
 
by Sullivan, or upon receiving any notice from any governmental department,
court, agency, or commission of its intention to institute an investigation into
or institute a suit or proceeding to restrain or enjoin the consummation of the
Merger or any such other transaction, or to nullify or render ineffective this
Agreement, the Merger or any such other transaction if consummated.

          7.G  Confidential Information.  If for any reason the transactions
               ------------ -----------                                     
contemplated in this Agreement are not consummated, Sullivan will not use or
disclose to any Person (except to its agents, representatives and advisors, to
its lenders and securityholders and their respective agents, representatives and
advisors, or as may be required by any Legal Requirement) any confidential
information received from any Acquiring Party or any of their respective agents,
representatives and advisors (each a "disclosing party" for purposes of this
Section 7.G) in the course of investigating, negotiating, and completing the
transactions contemplated by this Agreement.  Nothing will be deemed to be
confidential information for purposes of this Section 7.G that:  (a) is or was
known to any Sullivan-Related Entity at the time of its initial disclosure by a
disclosing party to any Sullivan-Related Entity; (b) has become or becomes
publicly known or available other than through disclosure by any Sullivan-
Related Entity; (c) is or was rightfully received by any Sullivan-Related Entity
from any Person unrelated to any Sullivan-Related Entity (other than any Person
engaged by any Sullivan-Related Entity in connection with the transactions
contemplated by this Agreement); or (d) is or was independently developed by any
Sullivan-Related Entity.

          7.H  Efforts to Consummate.  Subject to the provisions of Article IX
               ------- -- ----------                                         
and Section 12.A, Sullivan will use reasonable efforts to fulfill and perform
all conditions and obligations on its part to be fulfilled and performed under
this Agreement and to cause the conditions set forth in Articles IX and X to be
fulfilled and cause the Merger and the other transactions contemplated by this
Agreement in connection with the Closing to be fully carried out.  In addition,
promptly after Sullivan becomes aware prior to the Closing of a breach of any
fact or circumstance which constitutes or would constitute a breach of any other
Party's representation or warranty set forth in this Agreement, Sullivan will
give such Party notice thereof so that such Party may attempt to cure the same.

          7.I  Notice of Certain Developments.  Sullivan will give prompt
               ------ -- ------- ------------                            
written notice to Sinclair if, after the Spin-Off and prior to the Closing:  (1)
Sullivan receives notice from any Market Cable System currently carrying a
Station's signal of such Market Cable System's intention to delete such Station
from carriage or change such Station's channel position on such Market Cable
System, or (2) Sullivan becomes aware of any breach of any representation or
warranty of Sullivan set forth in Article IV.
 
          7.J  Updated Information.  Sullivan agrees to provide to Sinclair and
               ------- -----------                                             
the Merger Sub at or prior to the Closing, for informational purposes only,
copies of all material Contracts in existence at the time of the Closing and
which are entered into after the Spin-Off and prior to the Closing.

                                       17
<PAGE>
 
          7.K  Non-Solicitation.  After the Spin-Off and prior to the Closing or
               ----------------                                                 
the earlier termination of this Agreement, each of ABRY Partners and Sullivan
will not, and each of them will not cause (and will use reasonable efforts not
to permit) any of its Subsidiaries, affiliates, directors, officers, employees,
representatives or agents to, directly or indirectly solicit, or initiate,
entertain or enter into any discussions or transactions with, or encourage or
provide any information to, any Person (other than any Person described in
Section 7.C), concerning any sale of any of the assets of Sullivan (other than
any sale which is not prohibited by Section 7.A(3)) or any merger, stock
acquisition or similar transaction involving Sullivan (other than an issuance of
capital stock or capital stock equivalents by Sullivan); provided that nothing
                                                         --------             
in this Section 7.K will prohibit ABRY Partners or Sullivan from furnishing, or
causing or permitting any other Person to furnish, information concerning
Sullivan to any governmental authority or court of competent jurisdiction or any
other Person as may be required by any Legal Requirement.


                                 ARTICLE VIII

                   COVENANTS OF SINCLAIR AND THE MERGER SUB

          8.A  Hart-Scott-Rodino Matters. Within 30 days after Sullivan's or its
               ----------------- -------                                       
own request after the Spin-Off, Sinclair will complete all documents (if any)
required to be filed with the FTC and the DOJ with respect to itself and/or its
Affiliate(s)  and concerning Merger in order to comply with the Hart-Scott-
Rodino Act and together with Sullivan and/or the appropriate Affiliate(s) of
Sullivan who are required to join in such filings, will file the same with the
FTC and the DOJ.  Sinclair will pay the filing fees associated with all such
filings and the filings described in Section 6.A.  Sinclair and the Merger Sub
will promptly furnish all materials thereafter required by the FTC, the DOJ or
any other governmental entity having jurisdiction over such filings, and will
take all reasonable actions and will file and use reasonable efforts to have
declared effective or approved all documents and notifications with any such
governmental entity, as may be required under the Hart-Scott-Rodino Act or other
federal antitrust laws for the consummation of the Merger.
 
          8.B  Confidential Information. If for any reason the transactions
               ------------ -----------                                    
contemplated in this Agreement are not consummated, each of Sinclair and the
Merger Sub will not use or disclose to any Person (except to its agents,
representatives and advisors, to its lenders and their respective agents,
representatives and advisors, or as may be required by any Legal Requirement)
any confidential information received from Sullivan Holdings, any of its
Subsidiaries, Sullivan or any of their respective agents, representatives and
advisors (each a "disclosing party" for purposes of this Section 8.B) in the
course of investigating, negotiating, and completing the transactions
contemplated by this Agreement.  Nothing will be deemed to be confidential
information for purposes of this Section 8.B that:  (a) is or was known to any
Sinclair-Related Entity at the time of its initial disclosure by a disclosing
party to any Sinclair-Related Entity; (b) has become or becomes publicly known
or available other than through disclosure by any Sinclair-Related Entity; (c)
is or was rightfully received by any Sinclair-Related Entity from any Person
unrelated to any Sinclair-

                                       18
<PAGE>
 
Related Entity (other than any Person engaged by any Sinclair-Related Entity in
connection with the transactions contemplated by this Agreement); or (d) is or
was independently developed by any Sinclair-Related Entity. In addition, the
Merger Sub agrees to be bound by the same obligations as Sinclair is bound
pursuant to the confidentiality agreement dated as of November 20, 1997 between
Sinclair and Sullivan Broadcasting, which confidentiality agreement will survive
the execution and delivery of this Agreement and will survive the execution and
termination of this Agreement, and no provision of this Section 8.B will be
deemed to supersede or in any way limit any obligation or right under such
confidentiality agreement.

          8.C  Efforts to Consummate.  Subject to the provisions of Article X
               ------- -- ----------                                         
and Section 12.A, each of Sinclair and the Merger Sub will use reasonable
efforts to fulfill and perform all conditions and obligations on its part to be
fulfilled and performed under this Agreement and to cause the conditions set
forth in Articles IX and X to be fulfilled and cause the Merger and the
transactions contemplated by this Agreement in connection with the Merger to be
fully carried out. In addition, promptly after Sinclair or the Merger Sub
becomes aware prior to the Closing of a breach of any fact or circumstance which
constitutes or would constitute a breach of any representation or warranty of
Sullivan set forth in this Agreement, Sinclair will give Sullivan notice thereof
so that Sullivan may attempt to cure the same.

          8.D  Notice of Proceedings.  Each of Sinclair and the Merger Sub will
               ------ -- -----------                                           
promptly notify Sullivan (prior to the Closing) or the Stockholder
Representative (after the Closing) in writing upon becoming aware of any order
or decree or any complaint praying for an order or decree restraining or
enjoining the consummation of the Merger or any other transaction contemplated
by this Agreement, or upon receiving any notice from any governmental
department, court, agency, or commission of its intention to institute an
investigation into or institute a suit or proceeding to restrain or enjoin the
consummation of the Merger or any such other transaction, or to nullify or
render ineffective this Agreement, the Merger or any such other transaction, if
consummated.  Sinclair will give the Stockholder Representative prompt written
notice if any Acquiring Party becomes aware of any breach of any representation
or warranty of any Acquiring Party set forth in Article V.
 
          8.E  Section 338 Election.  Without the Stockholder Representative's
               ------- --- --------                                           
prior written consent, Sinclair will not, and will not cause or permit any of
its Subsidiaries to, make an election under Section 338 of the Tax Code, or
under any analogous provision of any other Legal Requirements relating to Taxes,
with respect to the Merger.


                                  ARTICLE IX

           CONDITIONS TO THE OBLIGATIONS OF SULLIVAN AT THE CLOSING
                                        
          The obligation of Sullivan to consummate the Merger is, at Sullivan's
option, subject to the fulfillment of the following conditions at the time of
the Closing (Sullivan expressly 

                                       19
<PAGE>
 
acknowledging that the effectiveness of the Sullivan Consents is not a condition
to such obligation):

          9.A  Representations, Warranties, Covenants.
               -------------------------------------- 

               (1) Each of the representations and warranties of Sinclair and
     the Merger Sub set forth in Article V, considered without regard to any
     materiality qualifiers contained therein, will be deemed to be made again
     at and as of the time of the Closing (other than any such representation or
     warranty which is expressly made with reference to a time prior to the time
     of the Closing, which will be deemed remade as of such time only), and
     taken as a whole such representations and warranties, as so remade, will
     have been true and accurate in all material respects, except to the extent
     of deviations therefrom permitted or contemplated by this Agreement; and

               (2) each of Sinclair and the Merger Sub will in all material
     respects have performed and complied with the covenants and agreements
     required by this Agreement to be performed or complied with by it prior to
     or at the time of the Closing, taken as a whole.

          9.B  Proceedings.
               ----------- 

               (1) No action or proceeding will have been instituted and be
     pending before any court or governmental body to restrain or prohibit, or
     to obtain a material amount of damages in respect of, the consummation of
     the transactions contemplated by this Agreement that, in the reasonable
     opinion of Sullivan, may reasonably be expected to result in a preliminary
     or permanent injunction against such consummation or, if the transactions
     contemplated hereby were consummated, an order to nullify or render
     ineffective this Agreement or such transactions or for the recovery against
     any Sullivan-Related Entity or any officer, director or stockholder of any
     Sullivan-Related Entity of a material amount of damages; and
 
               (2) no Party will have received written notice from any
     governmental body of (a) such governmental body's intention to institute
     any action or proceeding to restrain or enjoin or nullify this Agreement or
     the transactions contemplated hereby, or to commence any investigation
     (other than a routine letter of inquiry, including, without limitation, a
     routine Civil Investigative Demand) into the consummation of the
     transactions contemplated by this Agreement, or (b) the actual commencement
     of such an investigation, in each case unless the same has been withdrawn,
     resolved, concluded or abandoned.

          9.C  Hart-Scott-Rodino and FCC Matters.  The Approval Date will have
               ---------------------------------                              
occurred and the Required FCC Consent will be in full force and effect.

          9.D  Spin-Off.  The Spin-Off will have been consummated.
               --------                                           

          9.E  Other Deliveries.  The Merger Sub will have delivered, or will
               ----------------                                              
stand ready 

                                       20
<PAGE>
 
to deliver to Sullivan such instruments, documents, and certificates as are
contemplated by Section 3.B(1).


                                   ARTICLE X

        CONDITIONS TO THE OBLIGATIONS OF THE MERGER SUB AT THE CLOSING

          The obligations of the Merger Sub to consummate the Merger on the
Closing Date are, at the Merger Sub's option, subject to the fulfillment of the
following conditions at the time of the Closing (Sinclair and the Merger Sub
expressly acknowledging that the effectiveness of the Acquiring Party Consents
is not a condition to such obligations):

          10.A Representations, Warranties, Covenants.
               -------------------------------------- 

               (1) Each of the representations and warranties of Sullivan set
     forth in Article IV, considered without regard to any materiality
     qualifiers contained therein, will be deemed to be made again at and as of
     the time of the Closing (other than any such representation or warranty
     which is expressly made with reference to a time prior to the time of the
     Closing, which will be deemed remade as of such time only), and taken as a
     whole such representations and warranties, as so remade, will have been
     true and accurate, except to the extent of deviations therefrom which are
     permitted or contemplated by this Agreement or which, in the aggregate, do
     not constitute and have not caused a Material Adverse Change; and
 
               (2) Sullivan will in all material respects have performed and
     complied with the covenants agreements required by this Agreement to be
     performed or complied with by it prior to or at the time of the Closing,
     taken as a whole, and Sullivan will in all material respects have performed
     and complied with the covenants and agreements required by this Agreement
     to be performed or complied with by it prior to or at the time of the
     Closing, taken as a whole.

          10.B Proceedings.
               ----------- 

               (1) No action or proceeding will have been instituted and be
     pending before any court or governmental body to restrain or prohibit, or
     to obtain a material amount of damages in respect of, the consummation of
     the transactions contemplated by this Agreement that, in the reasonable
     opinion of Sinclair, may reasonably be expected to result in a preliminary
     or permanent injunction against such consummation or, if the transactions
     contemplated hereby were consummated, an order to nullify or render
     ineffective this Agreement or such transactions or for the recovery against
     any Sinclair-Related Entity or any officer, director or stockholder of any
     Sinclair-Related Entity of a material amount of damages; and

                                       21
<PAGE>
 
               (2) no Party will have received written notice from any
     governmental body of (a) such governmental body's intention to institute
     any action or proceeding to restrain or enjoin or nullify this Agreement or
     the transactions contemplated hereby, or to commence any investigation
     (other than a routine letter of inquiry, including, without limitation, a
     routine Civil Investigative Demand) into the consummation of the
     transactions contemplated by this Agreement, or (b) the actual commencement
     of such an investigation, in each case unless the same has been withdrawn,
     resolved, concluded or abandoned.

          10.C Hart-Scott-Rodino and FCC Matters.  The Approval Date will have
               ---------------------------------                              
occurred and the Required FCC Consent will be in full force and effect.

          10.D Other Instruments.  Sullivan will have delivered, or will stand
               -----------------                                              
ready to deliver, to the Merger Sub such instruments, documents, and
certificates as are contemplated by Section 3.C(1).


                                  ARTICLE XI

                             POST-CLOSING MATTERS

          11.A Survival.  The representations, warranties and certifications of
               --------                                                        
the Parties contained in or made pursuant to this Agreement (including any
certification contained in any certificate to be delivered pursuant to Section
3.C) will survive the execution of this Agreement and the Closing only to the
extent expressly provided in the Indemnity Agreement.  The covenants and
agreements of the Parties set forth in this Agreement will survive until
performed and discharged in full.

          11.I Limitation of Recourse.  Except as provided in the Indemnity
               ----------------------                                      
Agreement, after the Closing, no claim may be brought or maintained against any
Party or  any Old Sullivan Stockholder or any of their respective present or
former officers, directors, employees or other affiliates by any Party or Old
Sullivan Stockholder or any of its successors or assigns, and no recourse may be
sought or granted against any Person, by virtue of or based upon any alleged
misstatement, omission, inaccuracy in, or breach of any representation, warranty
or certification of any Party set forth in or made pursuant to this Agreement,
and in no event will Sinclair or Post-Merger Sullivan be entitled to claim or
seek any rescission of the Merger or any of the other transactions consummated
pursuant to the Transaction Documents, any such right of rescission or rights to
damages which any such Party might otherwise have being hereby expressly waived
and any claims or judgments being limited accordingly.

          11.C Acknowledgment by the Acquiring Parties.  Each of the Acquiring
               ---------------------------------------                        
Parties has conducted, to its satisfaction, an independent investigation and
verification of Sullivan, its Subsidiaries, the Stations and the Station Assets
and the financial condition, results of operations, assets, liabilities,
properties and projected operations of Sullivan, its Subsidiaries, the Stations
and 

                                       22
<PAGE>
 
the Station Assets.  In determining to enter into this Agreement and proceed
with the transactions contemplated by this Agreement, each Acquiring Person has
relied on the covenants of Sullivan, the results of such independent
investigation and verification and the representations and warranties of
Sullivan (in conjunction with the Schedules hereto) set forth in this Agreement
(including the certifications to be made in any certificate to be delivered
pursuant to Section 3.C), all of which each Acquiring Party acknowledges and
agrees will survive for a limited duration. SUCH REPRESENTATIONS, WARRANTIES AND
CERTIFICATIONS CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS,  WARRANTIES
AND CERTIFICATIONS WITH RESPECT TO SULLIVAN, ITS SUBSIDIARIES, THE STATIONS AND
THE STATION ASSETS TO THE ACQUIRING PARTIES IN CONNECTION WITH THE TRANSACTIONS
CONTEMPLATED HEREBY, AND EACH ACQUIRING PARTY UNDERSTANDS, ACKNOWLEDGES AND
AGREES THAT ALL OTHER REPRESENTATIONS, WARRANTIES AND CERTIFICATIONS OF ANY KIND
OR NATURE AND WHETHER ORAL OR CONTAINED IN ANY WRITING OTHER THAN THIS AGREEMENT
OR ANY SUCH CERTIFICATE (INCLUDING WITHOUT LIMITATION, ANY REPRESENTATION,
WARRANTY OR CERTIFICATION RELATING TO THE PROJECTED, FUTURE OR HISTORICAL
FINANCIAL CONDITION, RESULTS OR OPERATIONS, ASSETS OR LIABILITIES RELATING TO
THE STATIONS) ARE SPECIFICALLY DISCLAIMED BY SULLIVAN, THE STOCKHOLDER
REPRESENTATIVE, THE OFFICERS OF SULLIVAN AND ITS SUBSIDIARIES AND THE OLD
SULLIVAN STOCKHOLDERS.

          11.D Corporate Name.  After the Merger (but on the Closing Date),
               --------------                                              
Post-Merger Sullivan will take and will cause its Subsidiaries to take such
action as is necessary to change its corporate name in its certificate or
articles of incorporation filed with the Secretary of State or similar official
of the jurisdiction of its incorporation to a name which does not include, and
is not confusingly similar to, the name "Sullivan" and will cease the use of all
Sullivan Broadcasting logos or any similar mark.  Notwithstanding anything in
this Agreement to the contrary, Post-Merger Sullivan will be entitled to
continue to use its present corporate name until such time as such name change
is effective and to the extent necessary to accomplish such name change, and may
endorse checks and other instruments in such name.


                                  ARTICLE XII

                                  TERMINATION

          12.A Termination of Agreement Prior to Closing.  Subject to Section
               -----------------------------------------                     
12.A(3), this Agreement may be terminated at any time prior to the Closing as
follows:

               (1) By Sullivan.  By Sullivan, by written notice (a "Sullivan
                   -----------                                      --------
     Termination Notice") to Sinclair:
     ------------------               

                                       23
<PAGE>
 
                   (a) at any time when any material breach by any Acquiring
          Party of its obligations pursuant to this Agreement has occurred and
          is continuing, if both

                       (i)   such breach materially and adversely affects the
               likelihood that any of the conditions set forth in Article IX or
               X which has not been satisfied or waived will be satisfied or
               materially and adversely affects any Party's ability to comply
               with its obligations pursuant to this Agreement, and

                       (ii)  at least thirty days have elapsed since Sullivan
               gave Sinclair written notice requesting that such Person cure
               such breach,

          unless prior to the giving of the Sullivan gave each such breaching
          Acquiring Party has cured such breach;

                   (b) at any time after the Expiration Date, if

                       (i)   as of the Expiration Date, each of Sullivan's and
               the Merger Sub's conditions to closing set forth in Articles IX
               and X was satisfied or waived in writing,

                       (ii)  the absence of satisfaction of each of Sullivan's
               and the Merger Sub's conditions to closing set forth in Articles
               IX and X which was not waived in writing or satisfied as of the
               Expiration Date was caused by a breach by one or more of the
               Acquiring Parties of any of its or their  representations,
               warranties and/or obligations under this Agreement and/or the
               failure of any Acquiring Party Consent to have been obtained,
 
                       (iii) the Approval Date had not occurred on or prior
               to the Expiration Date as a result of any breach by one or more
               of the Acquiring Parties of any provision of this Agreement, or

                       (iv)  one or more of the Acquiring Parties and the
               Affiliates thereof refused, failed or declined to take any action
               (other than divesting itself of an broadcast television or radio
               station of which it or one of its Subsidiaries is the licensee or
               terminating any time brokerage or similar arrangement) which the
               FCC, the FTC, the DOJ or the staff of any of them indicates to
               any Acquiring Party or agent thereof is a condition to the grant
               of the Required FCC Consent or the expiration or termination of
               the requisite waiting period under the Hart-Scott-Rodino Act for
               the Merger; or
 
                   (c) at any time after the Expiration Date, in any
          circumstance 

                                       24
<PAGE>
 
          which is not described in Section 12.A(1)(b), unless the absence of
          satisfaction of each of Sullivan's and the Merger Sub's closing
          conditions set forth in Articles IX and X which has not been satisfied
          or waived in writing has been caused by a breach by Sullivan of its
          obligations under this Agreement.

               (2) By Sinclair.  By Sinclair, by written notice (a "Sinclair
                   -----------                                      --------
     Termination Notice") to Sullivan:
     ------------------               
 
                   (a) at any time when any material breach by Sullivan of its
          obligations pursuant to this Agreement has occurred and is continuing,
          if both

                       (i)   such breach materially and adversely affects the
               likelihood that any of the conditions set forth in Article IX or
               X will be satisfied or materially and adversely affects any
               Party's ability to comply with its obligations pursuant to this
               Agreement and

                       (ii)  at least thirty days have elapsed since Sinclair
               gave Sullivan written notice requesting that Sullivan cure such
               breach,

          unless prior to the giving of such Sinclair Termination Notice
          Sullivan has cured such breach; or

                   (b) at any time after the Expiration Date, under any
          circumstances described in Section 12.A(1)(b) or Section 12.A(1)(c).
 
               (3) When Termination Not Permitted.  Sullivan may not terminate
                   ------------------------------                             
     this Agreement pursuant to Section 12.A(1) at any time when Sullivan is in
     material breach of a material obligation under this Agreement.  Sinclair
     may not terminate this Agreement pursuant to Section 12.A(2) at any time
     when any Acquiring Party is in material breach of a material obligation
     under this Agreement.

          12.B Survival of Certain Provisions; Remedies.
               ---------------------------------------- 

               (1) General.  No Party will have any liability to any other Party
                   -------                                                      
     for costs, expenses, damages (consequential or otherwise), loss of
     anticipated profits, or otherwise as a result of a termination pursuant to
     Section 12.A except as provided in Section 12.B(2) or 12.B(3). The Parties
     agree that time is of the essence with respect to the provisions of
     Sections 3.B and 12.A.  Sections 7.G and 8.G, this Article XII and Article
     XIII will survive the termination of this Agreement pursuant to Section
     12.A.

               (2) For Sullivan.  Sullivan  will have such remedies as it may
                   ------------                                              
     have at law or in equity in the event of a termination of this Agreement
     pursuant to Section 12.A.

                                       25
<PAGE>
 
               (3) For the Acquiring Parties.  The Acquiring Parties' sole and
                   -------------------------                                  
     exclusive remedies for the termination of this Agreement or any failure of
     performance or compliance by Sullivan with any covenant or agreement
     contained in this Agreement prior to the Closing, or by Sullivan with any
     covenant or agreement contained in this Agreement prior to the Closing,
     will be

                   (a) their respective rights (if any) under applicable law or
          equitable principles to seek damages in respect of their direct out-
          of-pocket losses or expenses (but not any damages in respect of lost
          profits or other similar or consequential or incidental damages)
          occasioned by and as a consequence of such breach;

                   (b) their respective rights (if any) under applicable law or
          equitable principles to seek specific enforcement of this Agreement
          against Sullivan, including specific enforcement of Sullivan's
          obligation to consummate the Merger (subject to FCC approval and other
          required Consents being obtained), it being acknowledged by Sullivan
          that the Acquiring Parties would not have an adequate remedy at law in
          the event of any such failure, provided that no Acquiring Party will
                                         --------                             
          be entitled to such specific performance unless (i) each Acquiring
          Party has complied in all material respects with its material
          obligations under this Agreement and (ii) either (A) each condition to
          closing of Sullivan set forth in Article IX has been satisfied or
          waived in writing or (B) the absence of satisfaction of each such
          condition to closing which has not been satisfied or waived in writing
          is caused solely by a breach by Sullivan of its obligations under this
          Agreement.

                                 ARTICLE XIII

                                 MISCELLANEOUS

          13.A Expenses.  Except as otherwise expressly provided in this
               --------                                                 
Agreement, Sullivan will bear all of the expenses incurred prior to the Closing
by Sullivan and the Stockholder Representative in connection with the
transactions contemplated by this Agreement, and each of the Acquiring Parties
will bear all of its expenses incurred in connection with the transactions
contemplated by this Agreement, in each case including, without limitation,
account  ing and legal fees incurred in connection herewith.

          13.B Assignments.
               ----------- 

               (1) By Sullivan.  This Agreement may not be assigned by Sullivan
                   -----------                                                 
     without the prior written consent of the Acquiring Parties.
     Notwithstanding the foregoing, Sullivan may assign its rights under this
     Agreement for collateral purposes only to any lender to it, or any agent
     for any such lender(s), without the consent of any other Party, and any

                                       26
<PAGE>
 
     such lender or agent may transfer such rights pursuant to the exercise of
     remedies with respect to such collateral security to any other Person (it
     being understood that any such lender or agent will be a third-party
     beneficiary of the agreement constituted by this Section 13.B(1)).

               (2) By Sinclair.  Sinclair or the Merger Sub may assign its
                   -----------                                            
     rights under this Agreement without the consent of Sullivan or the
     Stockholder Representative.

               (3) General Rules.  Any attempt to assign this Agreement or any
                   -------------                                              
     rights or obligations hereunder without first obtaining any consent which
     is required by this Section 13.B will be void.  This Agreement will be
     binding upon and inure to the benefit of the parties hereto and their
     respective successors and permitted assigns.  Each Old Sullivan Stockholder
     is an express third-party beneficiary of this Agreement.

          13.C Further Assurances.  From time to time prior to, at, and after
               ------------------                                            
the Closing, each Party will execute all such instruments and take all such
actions as any other of them, being advised by counsel, may reasonably request
in connection with carrying out and effectuating the intent and purpose hereof,
and all transactions and things contemplated by this Agreement, including the
execution and delivery of any and all consents, confirmatory and other
instruments, in addition to those to be delivered at the Closing, and any and
all actions which may reasonably be necessary to complete the transactions
contemplated hereby.

          13.D Notices.  All notices, demands, and other communications which
               -------                                                       
may or are required to be given under or with respect to this Agreement will be
in writing, will be delivered personally or sent by nationally recognized
overnight delivery service, charges prepaid, or by registered or certified mail,
return-receipt requested, and will be deemed to have been given or made when
personally delivered, or on the next Business Day after delivery to such
overnight delivery service, or on the fifth day after it is deposited in the
mail, registered or certified, first class postage prepaid, as the case may be,
if addressed as follows:
 
               (1) If to Sullivan (prior to the Closing) or the Stockholder
                   --------------------------------------------------------
     Representative:
     -------------- 

               c/o ABRY Partners, Inc.
               18 Newbury Street
               Boston, Massachusetts 02116
               Attn: Royce Yudkoff, President

                                       27
<PAGE>
 
               with a copy (which will not constitute notice to Sullivan or the
               Stockholder Representative) to:

                   John L. Kuehn, Esq.
                   Kirkland & Ellis
                   153 E. 53rd Street
                   New York, New York 10022

          or to such other address and/or with such other copies as the Person
          to whom such notice is to be given may from time to time designate by
          notice to the Acquiring Parties given in accordance with this Section
          13.D.

               (2) If to Sinclair, the Merger Sub or  Post-Merger Sullivan:
                   -- -- --------- --- ------ --- --  ----------- -------- 

               Sinclair Broadcast Group, Inc.
               2000 W. 41st Street
               Baltimore, Maryland  21211
               Attn:  David D. Smith, President

               with a copy (which will not constitute notice to Sinclair, the
               Merger Sub or Post-Merger Sullivan) to:

                   Steven A. Thomas, Esq.
                   Thomas & Libowitz, P.A.
                   100 Light Street, Suite 1100
                   Baltimore, Maryland  21202
 
                   and
                   ---
 
                   Sinclair Communications, Inc.
                   2000 W. 41st Street
                   Baltimore, Maryland 21211
                   Attn:  General Counsel
 
 
          or to such other address and/or with such other copies as the Person
          to whom such 

                                       28
<PAGE>
 
          notice is to be given may from time to time designate by notice to
          Sullivan (if prior to the Closing) and the Stockholder Representative
          given in accordance with this Section 13.D.
 
          13.E Captions.  The captions of Articles and Sections of this
               --------                                                
Agreement are for convenience only, and will not control or affect the meaning
or construction of any of the provisions of this Agreement.

          13.F Law Governing.  THIS AGREEMENT WILL BE GOVERNED BY, CONSTRUED,
               -------------                                                 
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCES TO THE PRINCIPLES OF CONFLICT OF LAWS OF THE STATE OF NEW YORK,
EXCEPT TO THE EXTENT THAT THE FEDERAL LAW OF THE UNITED STATES GOVERNS THE
TRANSACTIONS CONTEMPLATED HEREBY.
 
          13.G Waiver of Provisions.  The terms, covenants, representations,
               --------------------                                         
warranties, and conditions of this Agreement may be waived as to any Party only
by a written instrument executed by such Party.  The terms, covenants,
representations, warranties, and conditions of this Agreement may be waived as
to any Old Sullivan Stockholder only by a written instrument executed by
Sullivan, prior to the Closing, or the Stockholder Representative, after the
Closing. The failure of any Party or any Old Sullivan Stockholder at any time or
times to require performance of any provision of this Agreement will in no
manner affect the right at a later date to enforce the same.  No waiver by or on
behalf of any Party to this Agreement or any Old Sullivan Stockholder of any
condition or the breach of any provision, term, covenant, representation, or
warranty contained in this Agreement, whether by conduct or otherwise, in any
one or more instances, will be deemed to be or construed as a further or
continuing waiver of any such condition or of the breach of any other provision,
term, covenant, representation, or warranty of this Agreement.

          13.H Counterparts.  This Agreement may be executed in two (2) or more
                -----------                                                    
counterparts, and all counterparts so executed will constitute one (1) agreement
binding on all of the parties hereto, notwithstanding that all the parties
hereto are not signatory to the same counterpart.

          13.I Entire Agreement.  This Agreement (including the Schedules and
               ----------------                                              
Exhibits hereto) and the confidentiality agreement referred to in Section 8.C
(including the Acquiring Parties' obligations with respect thereto, as provided
in Section 8.C), constitute the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersede any and all prior
agreements, understandings, negotiations, and discussions, whether oral or
written, between them relating to the subject matter hereof.

          13.J Access to Books and Records.
               --------------------------- 
 
               (1) Post-Merger Sullivan will, and will cause its Subsidiaries
     to, preserve for not less than five (5) years after the Closing Date all
     books and records included in the Station Assets.  After such five-year
     period, Post-Merger Sullivan will not, and will not  

                                       29
<PAGE>
 
     cause or permit its Subsidiaries to, destroy any books or records relating
     to the conduct of business of the Stations prior to the Effective Time
     unless Post-Merger Sullivan first offers to transfer such books and records
     to the Stockholder Representative at no cost to the Stockholder
     Representative, and if Post-Merger Sullivan is requested to do so, Post-
     Merger Sullivan will transfer, or cause a Subsidiary of Post-Merger
     Sullivan to transfer, such books or records to the Stockholder
     Representative.

               (2) At the request of the Stockholder Representative, Post-Merger
     Sullivan will, and will cause each of its Subsidiaries to, permit the
     Stockholder Representative (including its officers, employees, accountants,
     and counsel) any access, upon reasonable prior written notice during normal
     business hours, to all of its property, accounts, books, contracts,
     records, accounts payable and receivable, records of employees, FCC logs
     and other information concerning the affairs or operation of the Stations
     as the Stockholder Representative may reasonably request for any reasonable
     purpose relating to the transactions contemplated by this Agreement or the
     ownership or operation of any Station prior to the Effective Time, and to
     make extracts or copies from the foregoing at the Stockholder
     Representative's expense.  At Post-Merger Sullivan's request, prior to
     receiving any such requested information, the Stockholder Representative
     will execute a confidentiality agreement with respect thereto which is
     reasonably acceptable to Post-Merger Sullivan.

          13.K Public Announcements.  Prior to the Closing, no Party will,
               ------ -------------                                       
except by mutual agreement of Sullivan and Sinclair (including agreement as to
content, text and method of distribution or release), make any press release or
other public announcement or disclosure concerning the transactions contemplated
by this Agreement, except as may be required by any Legal Requirement (including
filings and reports required to be made with or pursuant to the rules of the
Securities and Exchange Commission); provided that, prior to making any such
                                     --------                               
announcement or disclosure required by any Legal Requirement, to the extent
practicable, the disclosing Party gives each Person named above prior written
notice of the context, text and content of, the method of distribution or
release of, and all other material facts concerning, such disclosure.
 
          13.L Disclosure.  If and to the extent that any information required
               ----------                                                     
to be furnished by Sullivan in any attached Schedule is contained in this
Agreement or in any attached Schedule, such information will be deemed to have
been included in each other attached Schedule in which such information is
required to be included to the extent its relevance to such latter Schedule is
reasonably apparent.  By including any information in any attached Schedule,
Sullivan will not be deemed to have admitted or acknowledged that such
information is material to or outside the ordinary course of the business of
Sullivan or any Station.

          13.M Definitional Provisions.
               ------------ ---------- 

               (1) Terms Defined in Appendix.  Each capitalized term which is
                   ----- ------- -- --------                                 
     used and not otherwise defined in this Agreement or any attached Schedule
     has the meaning 

                                       30
<PAGE>
 
     which is specified for such term in the Appendix which is attached to this
     Agreement.

               (2) Knowledge.  As used in this Agreement, the term "knowledge"
                   ---------                                                  
     of Sullivan will refer only to the actual knowledge, without any particular
     inquiry (except as specified in this Agreement), of the Corporate
     Personnel, Andrew Banks and Royce Yudkoff, after inquiry of the general
     managers of the Stations; and the "knowledge" of Sinclair or the Merger Sub
     will refer only to the actual knowledge, without any particular inquiry
     (except as specified in this Agreement) of David Smith and David Amy.
 
               (3) Interpretation.  Words used in this Agreement, regardless of
                   --------------                                              
     the gender and number specifically used, will be deemed and construed to
     include any other gender, masculine, feminine or neuter, and any other
     number, singular or plural, as the context requires.  Whether or not used
     in conjunction with the words "without limitation" or words of similar
     import, the term "including" as used in this Agreement imports that the
     items referred to are illustrative only and do not purport to be a complete
     listing of the items of the type in question.  The wording of the
     provisions of this Agreement is the result of arms-length negotiations
     among the parties to this Agreement and was selected by them to reflect
     their mutual intentions; therefore, no party will be deemed the "drafter"
     of this Agreement and no rule of strict construction will be applied
     against or in favor of any party to this Agreement.

          13.N Arbitration.
               ----------- 

               (1) Generally.  Except as expressly provided in the Indemnity
                   ---------                                                
     Escrow Agreement or for purposes of pursuing any remedy pursuant to Section
     12.B(3)(b), the arbitration procedures described in this Section 13.N will
     be the sole and exclusive method of resolving and remedying claims arising
     under this Agreement and the other Transaction Documents ("Disputes");
                                                                --------   
     provided that nothing in this Section 13.N will prohibit a Party from
     --------                                                             
     instituting litigation to enforce any Final Arbitration Award.  Except as
     otherwise provided in the Commercial Arbitration Rules of the American
     Arbitration Association as in effect from time to time (the "AAA Rules"),
                                                                  --- -----   
     the arbitration procedures described in this Section 13.N and any Final
     Arbitration Award will be governed by, and will be enforceable pursuant to,
     the Uniform Arbitration Act as in effect in the State of New York from time
     to time.  No Person will be entitled to claim or recover punitive damages
     in any such proceeding.

               (2) Notice of Arbitration.  If a Party asserts that there exists
                   ------ -- -----------                                       
     a Dispute, then such Person (the "Disputing Person") will give each other
                                       --------- ------                       
     Person involved in such Dispute a written notice setting forth the nature
     of the asserted Dispute.  If all such Persons do not resolve any such
     asserted Dispute prior to the tenth Business Day after such notice is
     given, then the Disputing Person may commence arbitration pursuant to this
     Section 13.N by giving each other Person involved in such Dispute a written
     notice to that effect (an "Arbitration Notice"), setting forth any matters
                                ----------- ------                             
     which are required to be set forth therein in 

                                       31
<PAGE>
 
     accordance with the AAA Rules. Unless otherwise notified, the Acquiring
     Parties are entitled to assume that the Stockholder Representative is
     authorized to act on behalf of each Old Sullivan Stockholder with respect
     to any Dispute.

               (3) Selection of Arbitrator.  The Persons involved in such
                   --------- -- ----------                               
     Dispute will attempt to select a single arbitrator by mutual agreement.  If
     no such arbitrator is selected prior to the twentieth Business Day after
     the related Arbitration Notice is given, then an arbitrator which is
     experienced in matters of the type which are the subject matter of the
     Dispute will be selected in accordance with the AAA Rules.

               (4) Conduct of Arbitration.  The arbitration will be conducted
                   ------- -- -----------                                    
     under the AAA Rules, as modified by any written agreement among the Persons
     involved in such Dispute.  The arbitrator will conduct the arbitration in a
     manner so that the final result, determination, finding, judgment or award
     determined by the arbitrator (the "Final Arbitration Award") is made or
                                        ----- ----------- -----             
     rendered as soon as practicable, and the Persons involved in such Dispute
     will use reasonable efforts to cause a Final Arbitration Award to occur not
     later than the sixtieth day after the arbitrator is selected.  Any Final
     Arbitration Award will be final and binding upon the Persons involved in
     such Dispute, and there will be no appeal from or reexamination of any
     Final Arbitration Award, except as provided in the Uniform Arbitration Act,
     as in effect in the State of New York from time to time.
 
               (5) Enforcement.  A Final Arbitration Award may be enforced in
                   -----------                                               
     any state or federal court having jurisdiction over the subject matter of
     the related Dispute.

               (6) Expenses.  The prevailing Person(s) in any arbitration
                   --------                                              
     proceeding in connection with this Agreement will be entitled to recover
     from the non-prevailing Person(s) their reasonable attorneys' fees and
     disbursements in addition to any damages or other remedies awarded to such
     prevailing Person(s), and the non-prevailing Person(s) will be required to
     pay all other costs and expenses associated with the arbitration; provided
                                                                       --------
     that (i) if an arbitrator is unable to determine that a Person is a
     prevailing Person in any such arbitration proceeding, then such costs and
     expenses will be equitably allocated by such arbitrator upon the basis of
     the outcome of such arbitration proceeding, and (ii) if such arbitrator is
     unable to allocate such costs and expenses in such a manner, then the costs
     and expenses of such arbitration will be paid one-half by Sullivan and one-
     half by Sinclair, and each Party will pay the out-of-pocket expenses
     incurred by it.  As part of any Final Arbitration Award, the arbitrator may
     designate the prevailing Person(s) for purposes of this Section 13.N(6).
     Except as provided in the preceding sentences, each Person involved in a
     Dispute will bear its own costs and expenses (including legal fees and
     disbursements) in connection with any such proceeding or submission.
 
          13.O Stockholder Representative.
               ----------- -------------- 

               (1) Appointment; Authority Generally.  On behalf of the Old
                   ------------ --------- ---------                       
     Sullivan 

                                       32
<PAGE>
 
     Stockholders, Sullivan hereby appoints ABRY Partners as the initial
     Stockholder Representative under this Agreement, to serve in accordance
     with the terms, conditions and provisions of this Agreement, and ABRY
     Partners, by its execution of this Agreement, hereby agrees to act as such,
     upon the terms, conditions and provisions of this Agreement. From and after
     the Closing, the Stockholder Representative will be authorized to act on
     behalf of the Old Sullivan Stockholders in accordance with this Agreement.

               (2) Authorization.  The Stockholder Representative, in such
                   -------------                                          
     capacity, will be entitled to take all actions on behalf of the holders of
     Sullivan Shares or the Old Sullivan Stockholders, as the case may be, with
     respect to this Agreement and the other agreements contemplated hereby, and
     omit to take any action, each as directed by

                   (a) prior to the Effective Time, the holders of capital
          stock of Sullivan having a majority of the voting power represented by
          the outstanding capital stock of Sullivan at the time in question, and

                   (b) after the Effective Time, Persons who immediately prior
          to the Effective Time held Sullivan Shares which represented a
          majority of the voting power of the Sullivan Shares,

     (in either case, the "Majority Sullivan Stockholders").  The Stockholder
                           -------- -------- ------------                    
     Representative may be removed and replaced from time to time as the
     representative of the holders of the Sullivan Shares or the Old Sullivan
     Stockholders by written notice given by the Majority Sullivan Stockholders
     to Sullivan (prior to the Effective Time) and the Acquiring Parties.

               (3) Responsibility.  The Stockholder Representative will have no
                   --------------                                              
     duties or responsibilities except those expressly set forth in this
     Agreement or any other agreement which may be entered into by it hereunder.
     The Stockholder Representative will have no responsibility for the validity
     of this Agreement or any agreement referred to in this Agreement or for the
     performance of any such agreements by any party thereto or for the
     interpretation of any of the provisions of any such agreements.  The
     Stockholder Representative's liability in fulfilling its duties will be
     limited to bad faith, willful misconduct or gross negligence on its part.
     The Stockholder Representative will be protected in acting upon any
     certificate, notice or other instrument whatsoever received by the
     Stockholder Representative as to its due execution, the validity and
     effectiveness of its provisions, and the truth and accuracy of any
     information therein contained that the Stockholder Representative in good
     faith believes to be genuine and to have been signed or presented by a
     proper Person or Persons.  The Stockholder Representative may, in its sole
     discretion, consult with and obtain advice from legal counsel and any other
     Person in the event of any question as to any of the provisions of this
     Agreement, any other agreement entered into in connection herewith or its
     duties hereunder or thereunder.  The reasonable cost of such services, to
     the extent not borne by Sullivan, will be borne among the Old Sullivan
     Stockholders who held Sullivan Shares immediately prior to the Effective
     Time, pro 

                                       33
<PAGE>
 
     rata in accordance with the respective amounts of the Merger Consideration
     to be received by them in respect of the Sullivan Shares.

               (4) Resignation; Replacement.  The Stockholder Representative
                   ------------ -----------                                 
     will have the right, in its sole discretion, to resign as the Stockholder
     Representative (in its capacity as the representative of the holders of
     Sullivan Shares or the Old Sullivan Stockholders) at any time by giving at
     least 30 days prior written notice to Sullivan (prior to the Effective
     Time) and the Acquiring Parties.  In such event, Sullivan (prior to the
     Effective Time) or the Majority Sullivan Stockholders (after the Effective
     Time) will promptly appoint another Stockholder Representative to represent
     the holders of Sullivan Shares and the Old Sullivan Stockholders and give
     notice of such selection to the Acquiring Parties and the Old Sullivan
     Stockholders (after the Effective Time).  Such resignation of the
     Stockholder Representative will be effective upon such notice being given
     and such new Stockholder Representative's acceptance of such appointment
     and will relieve the resigning Stockholder Representative of all duties and
     responsibilities of the Stockholder Representative in such capacity
     thereafter arising.

          13.P Completion of Sullivan's Schedules.  The Acquiring Parties
               ---------- -- ---------- ---------                        
acknowledge that Sullivan has executed this Agreement without having the
opportunity to request of personnel of the Stations information which may be
material to the preparation of the attached Schedules referred to in Article IV
(and that, therefore, some or all of such attached Schedules may not be correct
and complete and, as a result, some or all of the representations and warranties
set forth in Article IV which refer to such attached Schedules may not be true
and correct).  On or prior to March 9, 1998, Sullivan may deliver to Sinclair an
amendment and restatement of any such attached Schedule, or any portion thereof,
or a supplement to any such attached Schedule or any portion thereof, which may
be required in order to accurately depict facts and circumstances which exist on
the date of this Agreement (or any other applicable date referred to in any such
representation or warranty), and the attached Schedule or portion thereof in
question will be deemed to have been so amended and restated or modified, as the
case may be, as of the time of the execution and delivery of this Agreement.

          13.Q Treatment of Station KOKH.  Each Acquiring Party acknowledges
               --------- -- ------- ----                                    
that, notwithstanding any language to the contrary in this Agreement, Sullivan
has made and will make no representation, warranty or certification of any kind
with respect to Station KOKH (including with respect to the assets, liabilities
and operations related to Station KOKH), and no representation or warranty set
forth in Article IV, and no certification relating thereto delivered pursuant to
Section 3.C, will be deemed to apply to Station KOKH (including to any related
asset, liability or operations).


                          [SIGNATURE PAGES TO FOLLOW
                   --REST OF PAGE LEFT INTENTIONALLY BLANK]

                                       34
<PAGE>
 
          IN WITNESS WHEREOF, the parties have caused this Agreement and Plan of
Merger to be duly executed by their duly authorized officers, all as of the day
and year first above written.


                         SULLIVAN BROADCASTING COMPANY II, INC.


                         By:
                            -----------------------------------------
                         Its:
                             ----------------------------------------
                             
                         SINCLAIR BROADCAST GROUP, INC.,
                           in its own right and on behalf of a Subsidiary
                           to be formed by it


                         By:
                            -----------------------------------------
                         Its:
                             ----------------------------------------


                         ABRY PARTNERS, INC.

 
                         By:
                            -----------------------------------------
                         Its:
                             ----------------------------------------

                                       35
<PAGE>
 
                                   APPENDIX


          Additional Defined Terms.  The following capitalized terms have the
          ---------- ------- -----                                           
following meanings when used in this Agreement and the Schedules attached to
this Agreement:

          "ABRY Fund" means ABRY Broadcast Partners II, L.P., a Delaware limited
           ---- ----                                                            
     partnership.

          "Acquiring Parties" means Sinclair, the Merger Sub and Post-Merger
           --------- -------                                                
     Sullivan.

          "Acquiring Party Consents" means all Consents other than the Required
           --------- ----- --------                                            
     FCC Consent, any Consent required under the Hart-Scott-Rodino Act, or any
     Sullivan Consent.

          "Affiliate" of any Person means any other Person which is controlled
           ---------                                                          
     by, controls, or is under common control with, such first Person.

          "Affiliated Group" means an affiliated group of corporations, as that
           ---------- -----                                                    
     term is defined in Section 1504(a) of the Tax Code (or in any analogous
     combined, consolidated or unitary group defined under state, local or
     foreign income Tax law).

          "Approval Date" means the first day upon which the Required FCC
           -------- ----                                                 
     Consent has been Granted and the requisite waiting period under the Hart-
     Scott-Rodino Act for the consummation of the Merger has expired or been
     terminated.

          A "Business Day" means any day other than a Saturday, a Sunday or
             -------- ---                                                  
     another day upon which banks in New York, New York generally are not open
     for business.
 
          "Closing Date" means the date upon which the Closing occurs.
           ------- ----                                               

          "Communications Act" means the Communications Act of 1934, as amended
           -------------- ---                                                  
     and as in effect from time to time.

          "Consent" means any consent, order, approval, authorization or other
           -------                                                            
     action of, or any filing with or notice to or other action by or with
     respect to, any Person which is required for any of the execution, delivery
     or performance of this Agreement, the consummation of the Spin-Off, the
     Merger, or the conduct of the business of Sullivan or Post-Merger Sullivan
     or the holding or utilization of any Station Asset thereafter, whether such
     requirement arises pursuant to any Legal Requirement, Contract, a Person's
     organizational documents or otherwise, including any of the foregoing which
     is required in order to prevent a breach of or a default under or a
     termination or modification of any Contract.

                                       36
<PAGE>
 
          "Contract" means any agreement, lease, arrangement, commitment, or
           --------                                                         
     understanding to which Sullivan, with respect to the Stations, is a party.

          "Contracts Schedule" means the attached Exhibit C.
           --------- --------                     ------- - 

          "Corporate Personnel" means J. Daniel Sullivan, David Pulido, Patrick
           --------- ---------                                                 
     Bratton, Richard Montgomery, Barry Charbonneau and any successor to any of
     them in his capacity as an employee and/or officer of Sullivan.

          "Effective Time" means the time of the filing of the Certificate of
           --------- ----                                                    
     Merger described in Article II.

          "Expiration Date" means the earlier of (a) the last to occur of the
           ---------- ----                                                   
     15th day after the date upon which the Required FCC Consent is Granted and
     the last day of the calendar month during which the Required FCC Consent is
     Granted, and (b) December 31, 2008.

          "FCC" means the Federal Communications Commission or any successor
           ---                                                              
     thereto.

          "FCC Authorizations" means the authorizations issued by the FCC and
           --- --------------                                                
     described on the attached Schedule 4C.
                               -------- -- 

          A "Final Order" means the Required FCC Consent if (a) the Required FCC
             ----- -----                                                        
     Consent has been Granted and has not been reversed, stayed, set aside,
     enjoined, annulled or suspended (whether under Section 402 or 405 of the
     Communications Act or otherwise) and (b) (i) no request has been filed for
     administrative or judicial review, reconsideration, appeal, certiorari or
     stay and the time for filing any such request and for the FCC to review the
     Required FCC Consent on its own motion has expired, or (2) if such a
     review, reconsideration or appeal has occurred, such review,
     reconsideration or appeal has been denied and the time for further review,
     reconsideration or appeal has expired.
 
          "GAAP" means United States generally accepted accounting principles,
           ----                                                               
     as in effect from time to time, as applied by Sullivan and its Subsidiaries
     from time to time.

          The Required FCC Consent is "Granted" on the effective date, as
                                       -------                           
     determined under the FCC's rules, regulations and policies, of the grant
     thereof by the FCC or its staff.

          "Hart-Scott-Rodino Act" means the Hart-Scott-Rodino Antitrust
           ----------------- ---                                       
     Improvements Act of 1976, as in effect from time to time.

          "Headquarters Assets" means the assets of Sullivan Holdings and its
           ------------ ------                                               
     Subsidiaries located in the offices of Sullivan Holdings and its
     Subsidiaries located in Franklin, Tennessee, and Boston, Massachusetts, and
     any so-called "personal seat license" or other right of Sullivan Holdings
     or any of its Subsidiaries to subscribe for tickets to events at the

                                       37
<PAGE>
 
     stadium presently being constructed or proposed to be constructed in the
     Nashville, Tennessee, metropolitan area.

          "Indemnity Agreement" means the Indemnity Agreement entered into among
           --------- ---------                                                  
     Sullivan, Sinclair and certain other Persons dated as of the date of this
     Agreement, as such agreement is in effect from time to time.
 
          "Indemnity Escrow Agreement" means the Indemnity Escrow Agreement
           --------- ------ ---------                                      
     entered into among the Stockholder Representative, Sinclair and certain
     other Persons dated as of the date of this Agreement, as such agreement is
     in effect from time to time.
 
          "Legal Requirements" means the Communications Act, the rules,
           ----- ------------                                          
     regulations and published policies of the FCC, and all other federal, state
     and local laws, rules, regulations, ordinances, judgments, orders and
     decrees.

          "Lien" means any mortgage, pledge, hypothecation, encumbrance, lien
           ----                                                              
     (statutory or otherwise), preference, priority or other security agreement
     of any kind or nature whatsoever (including any conditional sale or other
     title retention agreement and any lease having substantially the same
     effect as any of the foregoing and any assignment or deposit arrangement in
     the nature of a security device).

          "Market Cable System" means, with respect to any Station, any cable
           ------ ----- ------                                               
     television system located within such Station's television market, as that
     term is defined in Section 76.55(e) of the rules of the FCC.
 
          "Mission Guarantees" means the (i) Guaranty of Sullivan Broadcasting
           ------- ----------                                                 
     dated as of July 11, 1996 in favor of NationsBank of Texas, N.A., and any
     other lenders referred to therein relating to certain indebtedness of
     Mission Broadcasting I, Inc., a Delaware corporation, and (ii) the Guaranty
     of Sullivan Broadcasting dated as of July 29, 1996 in favor of NationsBank
     of Texas, N.A., and any other lenders referred to therein relating to
     certain indebtedness of Mission Broadcasting II, Inc., a Delaware
     corporation, in each case as in effect from time to time.

          "Old Sullivan Stockholder" means any holder of record of any Sullivan
           --- -------- -----------                                            
     Share immediately prior to the Effective Time.

          "ordinary course of business" means the ordinary course of the conduct
           -------- ------ -- --------                                          
     of business by Sullivan Holdings and is Subsidiaries, substantially
     consistent with their respective past practices.

          "Parties" means the parties to this Agreement.
           -------                                      
 
          "Permitted Encumbrances" means (i) Liens arising by operation of law
           --------- ------------                                             
     and 

                                       38
<PAGE>
 
     securing the payment of Taxes which are not yet due and payable, (ii) with
     respect to any property leased by Sullivan as lessee, the interest of the
     lessor in such property, (iii) easements, rights-of-way, reservations of
     rights, conditions or covenants, zoning, building or similar restrictions
     or other non-monetary Liens or defects that do not, individually or in the
     aggregate, materially interfere with the use of the affected property in
     the operation of the Stations as currently conducted or as presently
     proposed by Sullivan Holdings and its Subsidiaries to be conducted, (iv)
     restrictions on transfer imposed under state or federal securities laws or
     pursuant to the Communications Act or the FCC Regulations, and (v) Liens
     securing indebtedness under the Sullivan Senior Debt Arrangements, other
     indebtedness and the Mission Guarantees.

          A "Person" means any individual, partnership, limited liability
             ------                                                      
     company, joint venture, corporation, trust, unincorporated association or
     government or department thereof.

          "Required FCC Consent" means the action(s) or order(s) by the FCC
           -------- --- -------                                            
     granting its Consent to the transfer of control of Sullivan by reason of
     the Merger, without any condition which in the reasonable judgment of the
     Sullivan and the Acquiring Parties is adverse to such Person (or, in
     Sullivan's or the Stockholder Representative's reasonable judgment, adverse
     to any of the Old Sullivan Stockholders), as the case may be, in any
     material respect.

          "Sinclair-Related Entity" means Sinclair, the Merger Sub, any direct
           ---------------- ------                                            
     or indirect assignee or proposed assignee (by operation of law or
     otherwise) of any of the rights of any of them pursuant to this Agreement
     or any other agreement contemplated hereby, any direct or indirect
     successor or proposed successor to Post-Merger Sullivan's business or
     operation with respect to any Station, or any Affiliate or any of them.

          "Spin-Off" means the transfer of the assets described on the attached
           --------                                                            
     Exhibit D to Sullivan by Sullivan Holdings and its Subsidiaries.
     ------- -                                                       

          "Station Assets" means all of Sullivan's rights in, to and under the
           ------- ------                                                     
     assets and properties of the Stations, real and personal, tangible and
     intangible, of every kind and description which are owned and used by
     Sullivan in connection with the business and operations of the Stations,
     including rights under contracts and leases, real and personal property,
     plant and equipment, inventories, intangibles, licenses and goodwill, and
     all other assets and properties of Sullivan used solely in connection with
     the operation of any Station; provided that the Station Assets will not
     include the Headquarters Assets.

          "Station KOKH" means broadcast television station KOKH-TV, Oklahoma
           ------- ----                                                      
     City, Oklahoma, together with all related translator stations (if any)
     owned by Sullivan.

          "Stations" means broadcast television station WZTV, Nashville, TN;
           --------                                                         
     broadcast television station WUTV, Buffalo, New York; broadcast television
     station WXLV-TV, Winston-Salem, North Carolina; broadcast television
     station WRLH-TV, Richmond, 

                                       39
<PAGE>
 
     Virginia; broadcast television station WUHF, Rochester, New York; and
     broadcast television station WMSN-TV, Madison, Wisconsin; in each case
     together with all associated translator stations (if any) owned by Sullivan
     Holdings or any of its Subsidiaries immediately prior to the Spin-Off.

          "Stockholder Representative" means ABRY Partners, Inc., a Delaware
           ----------- --------------                                       
     corporation, or any successor thereto as the Stockholder Representative
     designated pursuant to Section 13.O.

          With respect to any Person, a "Subsidiary" means any corporation,
                                         ----------                        
     partnership, limited liability company, association or other business
     entity of which, at the time of such reference, (i) if a corporation, a
     majority of the total voting power of shares of stock entitled (without
     regard to the occurrence of any contingency) to vote in the election of
     directors, managers or trustees thereof, or a majority economic interest,
     is at the time owned or controlled, directly or indirectly, by that Person
     or one or more of the other Subsidiaries of that Person or a combination
     thereof, or (ii) if a partnership, limited liability company, association
     or other business entity, a majority of the partnership or other similar
     ownership interest thereof is at the time owned or controlled, directly or
     indirectly, by any Person or one or more Subsidiaries of that Person or a
     combination thereof.  For purposes hereof, a Person or Persons will be
     deemed to have a majority ownership interest in a partnership, limited
     liability company, association or other business entity if such Person or
     Persons will be allocated a majority of partnership, company, association
     or other business entity gains or losses or will be or control the managing
     director or general partner of such partnership, company, association or
     other business entity.

          "Sullivan Broadcasting" means Sullivan Broadcasting Company, Inc., a
           -------- ------------                                              
     Delaware corporation.

          "Sullivan Common Stock" means Sullivan Shares which are common stock.
           -------- ------ -----                                               

          "Sullivan Consents" means all Consents of the board of directors or
           -------- --------                                                 
     stockholders of Sullivan.

          "Sullivan Holdings" means Sullivan Broadcast Holdings, Inc., a
           -------- --------                                            
     Delaware corporation.

          "Sullivan Holdings Financial Statements" means the Financial
           -------- -------- --------- ----------                     
     Statements attached to this Agreement as Exhibit E.
                                              --------- 

          "Sullivan-Related Entity" means any Affiliate of ABRY Partners Inc. or
           ---------------- ------                                              
     ABRY Broadcast Partners II, L.P., including Sullivan, prior to the
     Effective Time.

          "Sullivan Senior Debt Arrangements" means the Credit Agreement dated
           -------- ------ ---- ------------                                  
     as of 

                                       40
<PAGE>
 
     January 4, 1996 among Sullivan Holdings, Sullivan Broadcasting, the various
     Agents and co-Agents referred to therein, and the several Lenders from time
     to time parties thereto, together with all "Loan Documents" and other
     documents and instruments relating to the "Obligations" referred to
     therein, in each case as in effect from time to time.

          "Sullivan Share" means any share of capital stock of Sullivan which is
           -------- -----                                                       
     outstanding immediately prior to the Effective Time.

          "Sullivan Station Assets" means all of Sullivan Holdings', its
           -------- ------- ------                                      
     Subsidiaries, Sullivan's and Sullivan Three's rights in, to and under the
     assets and properties of the Sullivan Stations, real and personal, tangible
     and intangible, of every kind and description which are owned and used by
     Sullivan Holdings, its Subsidiaries, Sullivan or Sullivan Three in
     connection with the business and operations of the Sullivan Stations,
     including rights under contracts and leases, real and personal property,
     plant and equipment, inventories, intangibles, licenses and goodwill, and
     all other assets and properties of Sullivan, its Subsidiaries, Sullivan and
     Sullivan Three used solely in connection with the operation of any Sullivan
     Station; provided that the Sullivan Station Assets will not include the
              --------                                                      
     Headquarters Assets.

          "Sullivan Stations" means broadcast television station WZTV,
           -------- --------                                          
     Nashville, TN; broadcast television station WUTV, Buffalo, New York;
     broadcast television station WXLV-TV, Winston-Salem, North Carolina;
     broadcast television station WRGT-TV, Dayton, Ohio; broadcast television
     station WRLH-TV, Richmond, Virginia; broadcast television station WVAH-TV,
     Charleston, West Virginia; broadcast television station WUHF, Rochester,
     New York; broadcast television station WTAT-TV, Charleston, South Carolina;
     broadcast television station WFXV, Utica, New York; low-power television
     station WPNY-LP, Rome, New York; broadcast television station WMSN-TV,
     Madison, Wisconsin; Station KOKH; broadcast television station WUXP,
     Nashville, Tennessee; and broadcast television station WUPN-TV, Greensboro,
     North Carolina; in each case together with all associated translator
     stations (if any).

          "Sullivan Three" means Sullivan Broadcasting Company III, Inc., a
           -------- -----                                                  
     Delaware corporation.

          "Tax" (and, with correlative meaning, "Taxes", "Taxable" and "Taxing")
           ---                                                                  
     means any (A) federal, state, local or foreign income, gross receipts,
     franchise, estimated, alternative minimum, add-on minimum, sales, use,
     transfer, registration, value added, excise, natural resources, severance,
     stamp, occupation, premium, windfall profits, environmental (including
     under Section 59A of the Tax Code), customs, duties, real property, real
     property gains, personal property, capital stock, social security,
     unemployment, disability, payroll, license, employee or other withholding,
     or other tax of any kind whatsoever, including any interest, penalties or
     additions to tax or additional amounts in respect of the foregoing; (B)
     liability of any corporation for the payment of any amounts of the type
     described in clause (A) arising 

                                       41
<PAGE>
 
     as a result of being (or ceasing to be) a member of any Affiliated Group
     (or being included in any Tax Return relating thereto); and (C) liability
     for the payment of any amounts of the type described in clause (A) or (B)
     as a result of any express or implied obligation to indemnify or otherwise
     assume or succeed to the liability of any other Person.

          "Tax Code" means the Internal Revenue Code of 1986, as amended
           --- ----                                                     
     (including, where applicable, the Internal Revenue Code of 1954, as
     amended).

          "Transaction Documents" means this Agreement and all agreements
           ----------- ---------                                         
     between or among any or all of the Sullivan-Related Entities and the
     Sinclair-Related Entities relating thereto, in each case as in effect from
     time to time.

                                       42
<PAGE>
 
                               LIST OF SCHEDULES


Schedule 4C              FCC Matters
Schedule 4D              Certain Asset-Related Matters
Schedule 4F              Litigation
Schedule 4H              Conflicts
Schedule 4J              Tax Matters
Schedule 4N              Employee Benefit Matters



                               LIST OF EXHIBITS


Exhibit A           Opinions of Sullivan's Counsel
Exhibit B           Opinions of Sinclair's and the Merger Sub's Counsel
Exhibit C           Contracts Schedule
Exhibit D           Spin-Off Assets
Exhibit E           Sullivan Holdings Financial Statements

                                       43