EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT


                  AGREEMENT,  dated as of October 1, 1999,  by and between Clear
Channel Communications,  Inc., a Texas corporation (the Company), and L. Lowry
Mays (Executive).

                  IN  CONSIDERATION of the premises and the mutual covenants set
forth below, the parties hereby agree as follows:

                  1. Employment. The Company hereby agrees to continue to employ
Executive  as the  Chairman  and Chief  Executive  Officer of the  Company,  and
Executive hereby accepts such continued employment,  on the terms and conditions
hereinafter set forth.

                  2. Term.  The period of employment of Executive by the Company
under this Agreement (the Employment Period) shall commence on October 1, 1999
(the  Commencement  Date) and shall continue  through the seventh  anniversary
thereof;  provided,  that, the Employment Period shall automatically be extended
for one (1) additional  day each day during the Employment  Period unless either
party gives written notice not to extend this Agreement.  The Employment  Period
may be sooner  terminated by either party in  accordance  with Section 6 of this
Agreement.

                  3.  Position  and  Duties.   During  the  Employment   Period,
Executive  shall serve as Chairman and Chief  Executive  Officer of the Company,
and shall report solely and directly to the Companys  Board of Directors of the
Company (the  Board).  Executive  shall have those powers and duties  normally
associated with the position of Chairman and Chief Executive Officer of entities
comparable  to the Company and such other powers and duties as may be prescribed
by the Board;  provided that,  such other powers and duties are consistent  with
Executives  position as Chairman and Chief Executive  Officer.  Executive shall
devote  as much of his  working  time,  attention  and  energies  during  normal
business   hours   (other  than   absences   due  to  illness  or  vacation)  to
satisfactorily  perform his duties for the Company.  Notwithstanding  the above,
Executive shall be permitted, to the extent such activities do not substantially
interfere with the  performance by Executive of his duties and  responsibilities
hereunder to (i) manage Executives personal,  financial and legal affairs, (ii)
to serve on civic  or  charitable  boards  or  committees  (it  being  expressly
understood  and agreed that  Executives  continuing  to serve on any such board
and/or  committees  on which  Executive is serving,  or with which  Executive is
otherwise  associated,  as of the  Commencement  Date  shall  be  deemed  not to
interfere with the  performance by Executive of his duties and  responsibilities
under  this   Agreement)  and  (iii)  deliver   lectures  or  fulfill   speaking
engagements.  During  the  Employment  Period,  Executive  shall also serve as a
director of the Company.

                  4. Place of Performance.  The principal place of employment of
Executive shall be at the Companys  principal executive offices in San Antonio,
Texas.


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     5.       Compensation and Related Matters.

     (a) Base Salary and Bonus.  During the Employment Period, the Company shall
pay  Executive  a base salary at the rate of not less than  $1,000,000  per year
(Base Salary).  Executives  Base Salary shall be paid in approximately  equal
installments in accordance with the Companys  customary payroll practices.  The
Compensation  Committee of the Board (the Committee)  shall review Executives
Base Salary for increase (but not decrease) no less frequently than annually and
consistent  with the  compensation  practices and guidelines of the Company.  If
Executives Base Salary is increased by the Company,  such increased Base Salary
shall then  constitute  the Base Salary for all purposes of this  Agreement.  In
addition to Base Salary,  Executive  shall be paid an annual bonus (the Bonus)
as provided for under the Performance Based Compensation Plan of the Company and
any other annual incentive plan maintained by the Company or any successor plans
thereto as determined by the Committee.

     (b)  Expenses.  The Company  shall  promptly  reimburse  Executive  for all
reasonable  business  expenses  upon the  presentation  of  reasonably  itemized
statements  of such  expenses in  accordance  with the  Companys  policies  and
procedures  now in force or as such policies and procedures may be modified with
respect to all senior executive officers of the Company. In addition, during the
Employment  Period,  Executive  shall be entitled to, at the sole expense of the
Company,  the  use of an  automobile  appropriate  to his  position  and no less
favorable than the  automobile  provided  immediately  prior to the date of this
Agreement.

     (c)  Vacation.  Executive  shall be entitled to the number of weeks of paid
vacation per year that he was eligible for immediately prior to the date of this
Agreement,  but in no event less than four (4) weeks  annually.  Unused vacation
may be carried  forward from year to year.  In addition to  vacation,  Executive
shall be  entitled  to the number of sick days and  personal  days per year that
other senior  executive  officers of the Company with similar tenor are entitled
under the Companys policies.

     (d) Services  Furnished.  During the Employment  Period,  the Company shall
furnish Executive,  with office space,  stenographic and secretarial  assistance
and such other  facilities and services no less favorable than those that he was
receiving  immediately  prior to the date of this  Agreement  or, if better,  as
provided to other senior executive officers of the Company.

     (e) Welfare,  Pension and Incentive  Benefit  Plans.  During the Employment
Period, Executive (and his spouse and dependents to the extent provided therein)
shall be entitled to participate in and be covered under all the welfare benefit
plans or programs maintained by the Company from time to time for the benefit of
its   senior   executives   including,    without   limitation,   all   medical,
hospitalization,  dental,  disability,  accidental death and  dismemberment  and
travel  accident  insurance  plans and programs.  The Company shall at all times
provide to Executive (and his spouse and dependents to the extent provided under
the applicable plans or programs) (subject to modifications affecting all senior
executive  officers) the same type and levels of  participation  and benefits as
are being provided to other senior  executives (and their spouses and dependents
to  the  extent  provided  under  the  applicable  plans  or  programs)  on  the
Commencement Date. In addition, during the Employment Period, Executive shall be
eligible to participate in all pension,  retirement,  savings and other employee
benefit plans and programs  maintained  from time to time by the Company for the
benefit of its senior executives.

(f)      Stock Options.

     (i) During each  calendar year of the  Employment  Period  occurring  after
December 31, 1999,  the Committee  shall cause the Company to grant  Executive a
stock option to acquire at least 100,000  shares of the  Companys  common stock
(each,  an Option  and  collectively  the  Options)  at such  time(s) as the
Company has historically  granted stock options to its senior executive officers
during the year; provided,  that, such grants shall be made by at least December
31 of each calendar year occurring after December 31, 1999.  Notwithstanding the
foregoing,  unless  otherwise  waived  by  Executive  in  his  sole  discretion,
Executive  shall receive no less than the number of Options  granted  during any
prior year of employment.  In addition, to the extent necessary to carry out the
intended  terms of this  paragraph  (f)(i),  such  number  of  options  shall be
adjusted as is  necessary to take into account any change in the common stock of
the Company in a manner consistent with adjustments made to other option holders
of the Company.

     (ii) All Options  described in paragraph (i) above shall be granted subject
to the following terms and conditions: (A) except as provided below, the Options
shall be granted under and subject to the Companys  stock option plan;  (B) the
exercise price per share of each Option shall be equal to the last reported sale
price of the  Companys  common  stock on the New York Stock  Exchange  (or such
other principal  trading market for the Companys  common stock) at the close of
the trading day  immediately  preceding  the date as of which the grant is made;
(C) each Option shall be vested and  exercisable as determined by the Committee;
(D) each Option shall be exercisable for the ten (10) year period  following the
date of grant  whether or not  Executive is then  employed;  and (E) each Option
shall be evidenced by, and subject to, a stock option  agreement whose terms and
conditions are consistent with the terms hereof.

6. Termination.  Executives  employment  hereunder may be terminated during the
Employment Period under the following circumstances:

     (a) Death. Executives employment hereunder shall terminate upon his death.

     (b) Disability.  If, as a result of Executives  incapacity due to physical
or mental illness, Executive shall have been substantially unable to perform his
duties hereunder for an entire period of six (6) consecutive  months, and within
thirty (30) days after written Notice of Termination is given after such six (6)
month period,  Executive shall not have returned to the substantial  performance
of his  duties  on a  full-time  basis,  the  Company  shall  have the  right to
terminate   Executives   employment   hereunder  for  Disability,   and  such
termination  in and of  itself  shall  not be,  nor  shall it be deemed to be, a
breach of this Agreement.

     (c)  Cause.  The  Company  shall  have the right to  terminate  Executives
employment  for Cause,  and such  termination in and of itself shall not be, nor
shall it be deemed  to be, a breach  of this  Agreement.  For  purposes  of this
Agreement,  the Company shall have Cause to terminate  Executives  employment
upon Executives:

     (i) final conviction of a felony involving moral turpitude; or

     (ii) willful  misconduct  that is  materially  and  demonstrably  injurious
economically to the Company.

For purposes of this Section 6(c), no act, or failure to act, by Executive shall
be considered  willful  unless committed in bad faith and without a reasonable
belief that the act or omission was in the best  interests of the Company or any
entity in control of,  controlled  by or under  common  control with the Company
(Affiliates)  thereof.  Cause shall not exist under  paragraph (ii) unless and
until the Company has delivered to Executive a copy of a resolution duly adopted
by three-quarters  of the Board (excluding  Executive) at a meeting of the Board
called and held for such purpose  (after  reasonable  (but in no event less than
thirty (30) days) notice to Executive and an opportunity for Executive, together
with his counsel, to be heard before the Board),  finding that in the good faith
opinion of the Board, Executive was guilty of the conduct set forth in paragraph
(ii) and specifying the particulars  thereof in detail.  This Section 6(c) shall
not prevent  Executive from challenging in any arbitration or court of competent
jurisdiction the Boards  determination  that Cause exists or that Executive has
failed to cure any act (or failure to act) that purportedly formed the basis for
the Boards determination.

     (d) Good Reason.  Executive may terminate his  employment for Good Reason
anytime after  Executive  has actual  knowledge of the  occurrence,  without the
written consent of Executive, of one of the following events:

     (i) (A) any change in the duties or responsibilities  (including  reporting
responsibilities)  of Executive that is inconsistent in any adverse respect with
Executives  position(s),  duties,  responsibilities  or status with the Company
immediately  prior to such change  (including  any  diminution of such duties or
responsibilities)  or (B) an  adverse  change in  Executives  titles or offices
(including, membership on the Board) with the Company;

     (ii) a reduction in Executives Base Salary or Bonus opportunity;

     (iii) (A) any requirement  that Executive  travel on Company business to an
extent   substantially   greater  than  the  travel   obligations  of  Executive
immediately  prior to the date of this  Agreement or (B) the  relocation  of the
Companys  principal  executive  offices or Executives own office location to a
location more than fifteen (15) miles from their location  immediately  prior to
the date hereof;

     (iv) the failure of the Company or any  Affiliate to continue in effect any
material  employee  benefit plan,  compensation  plan,  welfare  benefit plan or
fringe benefit plan in which Executive is participating immediately prior to the
date of this  Agreement  or the  taking  of any  action  by the  Company  or any
Affiliate which would adversely  affect  Executives  participation in or reduce
Executives  benefits  under any such plan,  unless  Executive  is  permitted to
participate in other plans  providing  Executive with  substantially  equivalent
benefits;

     (v) any  refusal by the  Company or any  Affiliate  to  continue  to permit
Executive to engage in  activities  not directly  related to the business of the
Company  which  Executive  was  permitted to engage in prior to the date of this
Agreement;

     (vi) any purported termination of Executives employment for Cause which is
not  effected  pursuant to the  procedures  of Section 6(c) (and for purposes of
this Agreement, no such purported termination shall be effective);

     (vii) the Companys or any  Affiliates  failure to provide in all material
respects the indemnification set forth in Section 11 of this Agreement;

     (viii) a Change in Control of the Company;  provided, that, the transaction
contemplated by the Company and AMFM, Inc. shall not be deemed to be a Change in
Control for purposes of this clause (viii);

     (ix) the failure of the Company to obtain the assumption agreement from any
successor as contemplated in Section 13(a);

     (x) the Company or any Affiliate providing Executive
         the  notice  not to renew  the  Employment  Period as  contemplated  by
         Section 2 hereof;

     (xi) any other  breach of a material  provision  of this  Agreement  by the
Company or any Affiliate.

     For  purposes  of clauses (i) through  (vii) and (xi) above,  an  isolated,
insubstantial  and inadvertent  action taken in good faith and which is remedied
by the Company  within ten (10) days after  receipt of notice  thereof  given by
Executive  shall not  constitute  Good  Reason.  Executives  right to terminate
employment for Good Reason shall not be affected by  Executives  incapacity due
to mental or physical  illness and Executives  continued  employment  shall not
constitute  consent  to, or a waiver of rights  with  respect  to,  any event or
condition constituting Good Reason.

     (e)  Without  Cause.   The  Company  shall  have  the  right  to  terminate
Executives  employment  hereunder  without Cause by providing  Executive with a
Notice of Termination at least thirty (30) days prior to such  termination,  and
such termination  shall not in and of itself be, nor shall it be deemed to be, a
breach of this Agreement.

     (f) Without Good Reason.  Executive  shall have the right to terminate  his
employment  hereunder without Good Reason by providing the Company with a Notice
of  Termination  at least thirty (30) days prior to such  termination,  and such
termination  shall  not in and of  itself  be,  nor  shall it be deemed to be, a
breach of this Agreement.

     For purposes of this Agreement,  a Change in Control of the Company means
the occurrence of one of the following events:

     (1) individuals  who, on the Commencement  Date,  constitute the Board (the
Incumbent Directors) cease for any reason to constitute at least a majority of
the Board,  provided  that any person  becoming  a  director  subsequent  to the
Commencement  Date whose  election or nomination  for election was approved by a
vote of at least two-thirds of the Incumbent Directors then on the Board (either
by a specific vote or by approval of the proxy statement of the Company in which
such  person is named as a  nominee  for  director,  without  objection  to such
nomination)  shall  be  an  Incumbent  Director;   provided,  however,  that  no
individual  initially  elected or  nominated  as a director  of the Company as a
result of an actual or threatened  election contest with respect to directors or
as a result of any other actual or threatened  solicitation  of proxies by or on
behalf of any person other than the Board shall be an Incumbent Director;

                           (2) any  person (as such term is defined in Section
         3(a)(9) of the Securities Exchange Act of 1934 (the Exchange Act) and
         as used in Sections  13(d)(3) and  14(d)(2) of the Exchange  Act) is or
         becomes,  after the Commencement Date, a beneficial owner (as defined
         in Rule 13d-3  under the  Exchange  Act),  directly or  indirectly,  of
         securities  of the  Company  representing  20% or more of the  combined
         voting power of the Companys then outstanding  securities  eligible to
         vote for the election of the Board (the Company  Voting  Securities);
         provided,  however, that an event described in this paragraph (2) shall
         not be deemed to be a Change in  Control  if any of  following  becomes
         such  a  beneficial  owner:  (A)  the  Company  or  any  majority-owned
         subsidiary  (provided,  that  this  exclusion  applies  solely  to  the
         ownership levels of the Company or the majority-owned subsidiary),  (B)
         any  tax-qualified,  broad-based  employee  benefit  plan  sponsored or
         maintained  by the Company or any  majority-owned  subsidiary,  (C) any
         underwriter  temporarily  holding securities pursuant to an offering of
         such   securities,   (D)  any  person  pursuant  to  a   Non-Qualifying
         Transaction  (as defined in  paragraph  (3)),  or (E)  Executive or any
         group of  persons  including  Executive  (or any entity  controlled  by
         Executive or any group of persons including Executive).

                           (3) the approval by the  shareholders  of the Company
         of  a  merger,  consolidation,   share  exchange  or  similar  form  of
         transaction  involving the Company or any of its  subsidiaries,  or the
         sale of all or  substantially  all of the Companys assets (a Business
         Transaction),  unless immediately  following such Business Transaction
         (i) more than 65% of the total  voting  power of the  entity  resulting
         from such Business  Transaction  or the entity  acquiring the Companys
         assets in such Business  Transaction  (the Surviving  Corporation) is
         beneficially   owned,   directly  or   indirectly,   by  the  Companys
         shareholders  immediately prior to any such Business  Transaction,  and
         (ii) no person  (other than the persons set forth in clauses (A),  (B),
         or  (C) of  paragraph  (2)  above  or  any  tax-qualified,  broad-based
         employee  benefit plan of the Surviving  Corporation or its Affiliates)
         beneficially  owns,  directly or  indirectly,  20% or more of the total
         voting  power  of  the   Surviving   Corporation   (a   Non-Qualifying
         Transaction); or

                           (4) Board approval of a liquidation or dissolution of
         the Company,  unless the voting common  equity  interests of an ongoing
         entity  (other  than  a  liquidating  trust)  are  beneficially  owned,
         directly or indirectly,  by the Companys shareholders in substantially
         the  same  proportions  as  such   shareholders   owned  the  Companys
         outstanding  voting common equity interests  immediately  prior to such
         liquidation and such ongoing entity assumes all existing obligations of
         the Company to Executive under this Agreement.

7. Termination Procedure.

     (a) Notice of Termination. Any termination of Executives employment by the
Company or by Executive  during the  Employment  Period (other than  termination
pursuant to Section 6(a)) shall be communicated by written Notice of Termination
to the other party  hereto in  accordance  with Section 14. For purposes of this
Agreement,  a Notice of  Termination  shall mean a notice which shall indicate
the specific  termination  provision in this Agreement relied upon and shall set
forth in  reasonable  detail  the facts and  circumstances  claimed to provide a
basis  for  termination  of  Executives   employment  under  the  provision  so
indicated.

     (b)  Date  of  Termination.   Date  of  Termination  shall  mean  (i)  if
Executives  employment is terminated by his death, the date of his death,  (ii)
if Executives  employment is terminated  pursuant to Section 6(b),  thirty (30)
days  after  Notice  of  Termination  (provided  that  Executive  shall not have
returned  to the  substantial  performance  of his duties on a  full-time  basis
during such thirty (30) day  period),  and (iii) if  Executives  employment  is
terminated  for any other reason,  the date on which a Notice of  Termination is
given or any  later  date  (within  thirty  (30) days  after the  giving of such
notice) set forth in such Notice of Termination.

          8.  Compensation Upon Termination or During  Disability.  In the event
     Executive is disabled or his  employment  terminates  during the Employment
     Period,  the Company shall provide Executive with the payments and benefits
     set forth below.  Executive  acknowledges  and agrees that the payments set
     forth in this Section 8 constitute  liquidated  damages for  termination of
     his employment during the Employment Period.

          (a)  Termination  By Company  without  Cause or By Executive  for Good
     Reason.  If  Executives  employment is  terminated by the Company  without
     Cause or by Executive for Good Reason:

                           (i) within five (5) days following such  termination,
         the  Company  shall pay to  Executive  (A) his Base  Salary,  Bonus and
         accrued  vacation  pay  through  the  Date of  Termination,  as soon as
         practicable following the Date of Termination,  and (B) a lump-sum cash
         payment equal to seven (7) times (the Severance  Multiple) the sum of
         Executives  Base Salary and  highest  Bonus paid to  Executive  in the
         three year  period  preceding  such  termination  (including,  for this
         purpose,  any and all bonuses  paid to  Executive  prior to the date of
         this Agreement);  provided, that, for purposes of this Section 8(a)(i),
         Executives Bonus shall be deemed to be no less than $3,000,000; and

                           (ii) the  Company  shall  maintain  in full force and
         effect,  for the  continued  benefit of  Executive,  his spouse and his
         dependents  for a  period  of seven  (7)  years  following  the Date of
         Termination the medical,  hospitalization,  dental,  and life insurance
         programs  in  which  Executive,  his  spouse  and his  dependents  were
         participating immediately prior to the Date of Termination at the level
         in  effect  and  upon  substantially  the  same  terms  and  conditions
         (including without limitation  contributions  required by Executive for
         such benefits) as existed immediately prior to the Date of Termination;
         provided,  that,  if  Executive,  his spouse or his  dependents  cannot
         continue  to  participate  in  the  Company  programs   providing  such
         benefits,  the Company shall arrange to provide  Executive,  his spouse
         and his dependents with the economic  equivalent of such benefits which
         they otherwise would have been entitled to receive under such plans and
         programs  (Continued  Benefits),   provided,   that,  such  Continued
         Benefits  shall  terminate  on the  date or  dates  Executive  receives
         equivalent   coverage  and   benefits,   without   waiting   period  or
         pre-existing condition  limitations,  under the plans and programs of a
         subsequent  employer  (such coverage and benefits to be determined on a
         coverage-by-coverage or benefit-by-benefit, basis); and

                           (iii) the Company shall reimburse  Executive pursuant
         to Section 5 for reasonable  expenses  incurred,  but not paid prior to
         such termination of employment; and

                           (iv) Executive shall be entitled to any other rights,
         compensation  and/or  benefits as may be due to Executive in accordance
         with the terms and provisions of any  agreements,  plans or programs of
         the Company; and

                           (v) As of the Date of Termination, Executive shall be
         granted a stock  option to acquire  1,000,000  shares of the  Companys
         common stock (Termination Option) under the following conditions, (A)
         except as provided below, the Termination Option shall be granted under
         and subject to the Companys  stock option plan; (B) the exercise price
         per share of the Termination Option shall be equal to the last reported
         sale price of the Companys common stock on the New York Stock Exchange
         (or such other principal trading market for the Companys common stock)
         at the  close of the  trading  day  immediately  preceding  the Date of
         Termination;  (C) the  Termination  Option  shall  be 100%  vested  and
         exercisable on the date of grant;  (D) the Termination  Option shall be
         exercisable  for  the  ten  (10)  year  period  following  the  Date of
         Termination whether or not Executive is still providing services to the
         Company;  and (E) each Option shall be evidenced  by, and subject to, a
         stock option  agreement  whose terms and conditions are consistent with
         the terms hereof. In addition, to the extent necessary to carry out the
         intended  terms of this  paragraph  (a)(v),  such number of Termination
         Options  shall be adjusted  as is  necessary  to take into  account any
         change in the common stock of the Company in a manner  consistent  with
         adjustments  made to other option  holders of the Company.  The Company
         shall take all action  necessary  such that the shares of common  stock
         issuable upon exercise of the Termination Options (and all other shares
         of common stock held by Executive)  are  registered on Form S-4 or Form
         S-8 (or any successor or other appropriate forms).

                           (vi)  Notwithstanding  the terms or conditions of any
         stock option,  stock  appreciation  right or similar agreements between
         the Company and  Executive to the contrary,  and for purposes  thereof,
         such  agreements  shall be deemed to be amended in accordance with this
         Section  8(a)(vi) if need be as of the Date of Termination  and neither
         the  Company,  the Board nor the  Committee  shall  take or assert  any
         position  contrary to the  foregoing,  Executive  shall vest, as of the
         Date of Termination,  in all rights under such agreements (i.e.,  stock
         options that would  otherwise vest after the Date of  Termination)  and
         thereafter shall be permitted to exercise any and all such rights until
         the end of the term of such awards  (regardless  of any  termination of
         employment restrictions therein contained) and restricted stock held by
         Executive   shall  become   immediately   vested  as  of  the  Date  of
         Termination; and

                           (vii)  Executive  shall  be paid a lump  sum  payment
         equal to the amount of compensation or  contributions  (as the case may
         be) by the Company that  Executive  would have been entitled to receive
         (assuming  he  would  have  received  the  maximum  amount  payable  or
         contributable  under each plan or  arrangement  for any year) under any
         plan  or  arrangement  he  was  then   participating  (or  entitled  to
         participate  in) for a seven  (7)  year  period  following  the Date of
         Termination; and

                           (viii) Any and all insurance benefits or policies for
         the benefit of Executive  shall  become the sole  property of Executive
         and, to the extent  applicable,  all of the  Companys  rights  therein
         (including  repayment  of  premiums)  shall be forfeited by the Company
         and,  to the  extent  not  already  made,  the  Company  shall make all
         contributions  or payments  required of such  policies  for the year of
         termination; and

                           (ix) Any amount payable under this Section 8(a) shall
         also include an  additional  cash payment which shall equal any and all
         federal,  state and  local  taxes  due upon the  provision  of any such
         benefits  or  payments  thereunder  (other  than  taxes  due  under the
         operation  of  Section  4999 of the Code  which  Section of the Code is
         addressed  in Section  8(e) hereof and,  if  applicable,  shall work in
         conjunction  with this  Section  8(a)(ix)),  which  shall be payable to
         Executive   within  five  (5)  business  days  following  his  Date  of
         Termination  and such  additional  payment shall be grossed-up  for any
         additional taxes due thereon (and any taxes thereon,  etc.) in a manner
         consistent with the manner set forth in Section 8(e) of this Agreement,
         whether or not such Section 8(e) is applicable.

          (b)  Cause  or  By  Executive  Without  Good  Reason.  If  Executives
     employment is  terminated  by the Company for Cause or by Executive  (other
     than for Good Reason):

                           (i) the Company  shall pay Executive his Base Salary,
         Bonus and his accrued vacation pay through the Date of Termination,  as
         soon as practicable following the Date of Termination; and

                           (ii) the Company shall reimburse  Executive  pursuant
         to Section 5 for reasonable  expenses  incurred,  but not paid prior to
         such termination of employment; and

                           (iii)  Executive  shall  be  entitled  to  any  other
         rights,  compensation  and/or  benefits as may be due to  Executive  in
         accordance  with the terms and provisions of any  agreements,  plans or
         programs of the Company.

          (c) Disability.  During any period that Executive fails to perform his
     duties  hereunder  as a result  of  incapacity  due to  physical  or mental
     illness (Disability Period), Executive shall continue to receive his full
     Base Salary set forth in Section 5(a) until his  employment  is  terminated
     pursuant to Section 6(b). In the event Executives employment is terminated
     for Disability pursuant to Section 6(b):

                           (i) the Company  shall pay to Executive  (A) his Base
         Salary, Bonus and accrued vacation pay through the Date of Termination,
         as soon as  practicable  following  the  Date of  Termination,  and (B)
         continued  Base Salary (as provided for in Section  5(a)) and Continued
         Benefits for seven (7) years; and

                           (ii) the Company shall reimburse  Executive  pursuant
         to Section 5 for reasonable  expenses  incurred,  but not paid prior to
         such termination of employment; and

                           (iii)  Executive  shall  be  entitled  to  any  other
         rights,  compensation  and/or  benefits as may be due to  Executive  in
         accordance  with the terms and provisions of any  agreements,  plans or
         programs of the Company; and

                           (iv)   Executive   shall  be  paid  the   amount   of
         compensation or contributions  (as the case may be) by the Company that
         Executive  would have been entitled to receive  (assuming he would have
         received the maximum amount payable or contributable under each plan or
         arrangement  for any year)  under any plan or  arrangement  he was then
         participating  (or  entitled  to  participate  in) for a seven (7) year
         period following the Date of Termination.

          (d) Death. If Executives employment is terminated by his death:

                           (i)  the   Company   shall  pay  in  a  lump  sum  to
         Executives  beneficiary,  legal representatives or estate, as the case
         may be, Executives Base Salary, Bonus and accrued vacation pay through
         the Date of  Termination  and  $3,750,000  (which  may be paid  through
         insurance) and shall provide  Executives  spouse and  dependents  with
         Continued Benefits for seven (7) year; and

                           (ii)  the   Company   shall   reimburse   Executives
         beneficiary,  legal  representatives,  or  estate,  as the case may be,
         pursuant to Section 5 for reasonable  expenses  incurred,  but not paid
         prior to such termination of employment; and

                           (iii) Executives beneficiary,  legal representatives
         or estate,  as the case may be, shall be entitled to any other  rights,
         compensation  and  benefits as may be due to any such persons or estate
         in accordance with the terms and provisions of any agreements, plans or
         programs of the Company; and

                           (iv) Executives  beneficiary,  legal representatives
         or estate,  as the case may be shall be paid the amount of compensation
         or  contributions  (as the case may be) by the Company  that  Executive
         would have been  entitled to receive  (assuming he would have  received
         the  maximum  amount  payable  or  contributable  under  each  plan  or
         arrangement  for any year)  under any plan or  arrangement  he was then
         participating  (or  entitled  to  participate  in) for a seven (7) year
         period following the Date of Termination.

          (e)  Additional  Payments.  (i)  Anything  in  this  Agreement  to the
     contrary  notwithstanding,  in the  event it shall be  determined  that any
     payment,  award,  benefit  or  distribution  (or  any  acceleration  of any
     payment, award, benefit or distribution) by the Company or any entity which
     effectuates  a Change in Control (or other change in  ownership)  to or for
     the benefit of Executive  (the  Payments)  would be subject to the excise
     tax imposed by Section 4999 of the Code,  or any interest or penalties  are
     incurred by  Executive  with  respect to such excise tax (such  excise tax,
     together with any such interest and penalties, are hereinafter collectively
     referred to as the Excise  Tax),  then the Company shall pay to Executive
     an additional  payment (a Gross-Up  Payment) in an amount such that after
     payment by Executive of all taxes  (including  any Excise Tax) imposed upon
     the Gross-Up  Payment,  Executive retains an amount of the Gross-Up Payment
     equal to the sum of (x) the Excise Tax imposed  upon the  Payments  and (y)
     the product of any  deductions  disallowed  because of the inclusion of the
     Gross-Up  Payment in  Executives  adjusted  gross  income and the  highest
     applicable  marginal rate of federal income  taxation for the calendar year
     in which the Gross-Up  Payment is to be made.  For purposes of  determining
     the amount of the Gross-Up  Payment,  Executive  shall be deemed to (A) pay
     federal income taxes at the highest  marginal rates of federal income taxes
     at the highest marginal rate of taxation for the calendar year in which the
     Gross-Up  Payment is to be made, (B) pay applicable  state and local income
     taxes at the highest  marginal  rate of taxation for the  calendar  year in
     which the Gross-Up  Payment is to be made, net of the maximum  reduction in
     federal  income taxes which could be obtained from  deduction of such state
     and local taxes and (C) have  otherwise  allowable  deductions  for federal
     income tax  purposes  at least  equal to those  which  could be  disallowed
     because of the inclusion of the Gross-Up  Payment in  Executives  adjusted
     gross income.

                     (ii)  Subject to the  provisions  of Section  8(e)(i),  all
determinations required to be made under this Section
8(e),  including whether and when a Gross-Up Payment is required,  the amount of
such  Gross-Up  Payment and the  assumptions  to be utilized in arriving at such
determinations,  shall be made by a nationally recognized public accounting firm
that is  selected by  Executive  (the  Accounting  Firm)  which shall  provide
detailed  supporting  calculations  both to the  Company  and  Executive  within
fifteen  (15)  business  days of the  receipt  of  notice  from the  Company  or
Executive that there has been a Payment, or such earlier time as is requested by
the  Company or  Executive  (collectively,  the  Determination).  All fees and
expenses  of the  Accounting  Firm shall be borne  solely by the Company and the
Company  shall enter into any  agreement  requested  by the  Accounting  Firm in
connection with the performance of the services hereunder.  The Gross-Up Payment
under this Section 8(e) with respect to any Payments made to Executive  shall be
made no later than thirty (30) days  following  such Payment.  If the Accounting
Firm  determines  that no Excise Tax is payable by  Executive,  it shall furnish
Executive with a written opinion to such effect,  and to the effect that failure
to report the Excise Tax, if any, on Executives  applicable  federal income tax
return should not result in the imposition of a negligence or similar penalty.

                           (iii)  As  a  result  of  the   uncertainty   in  the
application of Section 4999 of the Code at the time of the
Determination,  it is possible that Gross-Up  Payments  which will not have been
made by the Company should have been made  (Underpayment) or Gross-Up Payments
are made by the  Company  which  should  not  have  been  made  (Overpayment),
consistent with the  calculations  required to be made  hereunder.  In the event
that  Executive  thereafter  is  required  to make  payment of any Excise Tax or
additional  Excise Tax, the  Accounting  Firm shall  determine the amount of the
Underpayment that has occurred and any such Underpayment (together with interest
at the rate  provided  in Section  1274(b)(2)(B)  of the Code) shall be promptly
paid by the Company to or for the benefit of Executive.  In the event the amount
of the Gross-Up Payment exceeds the amount necessary to reimburse  Executive for
his  Excise  Tax,  the  Accounting  Firm  shall  determine  the  amount  of  the
Overpayment that has been made and any such Overpayment  (together with interest
at the rate  provided in Section  1274(b)(2) of the Code) shall be promptly paid
by Executive  (to the extent he has received a refund if the  applicable  Excise
Tax has been paid to the Internal  Revenue Service) to or for the benefit of the
Company. Executive shall cooperate, to the extent his expenses are reimbursed by
the Company,  with any reasonable requests by the Company in connection with any
contest or disputes with the Internal  Revenue  Service in  connection  with the
Excise Tax.

                  9.  Mitigation.  Executive  shall not be  required to mitigate
amounts  payable under this Agreement by seeking other  employment or otherwise,
and there shall be no offset against  amounts due Executive under this Agreement
on account of subsequent  employment  except as  specifically  provided  herein.
Additionally, amounts owed to Executive under this Agreement shall not be offset
by any  claims  the  Company  may  have  against  Executive  and  the  Companys
obligation to make the payments  provided for in this Agreement and otherwise to
perform  its  obligations  hereunder,   shall  not  be  affected  by  any  other
circumstances,  including,  without  limitation,  any counterclaim,  recoupment,
defense or other right which the Company may have against Executive or others.

                  10.      Restrictive Covenants.

          (a)  Confidential  Information.  Executive  shall hold in a  fiduciary
     capacity for the benefit of the Company all trade secrets and  confidential
     information,  knowledge or data relating to the Company and its  businesses
     and  investments,  which  shall  have been  obtained  by  Executive  during
     Executives  employment by the Company and which is not generally available
     public  knowledge  (other than by acts by  Executive  in  violation of this
     Agreement). Except as may be required or appropriate in connection with his
     carrying out his duties under this Agreement,  Executive shall not, without
     the prior written consent of the Company or as may otherwise be required by
     law or any  legal  process,  or as is  necessary  in  connection  with  any
     adversarial  proceeding  against the Company (in which case Executive shall
     use his  reasonable  best  efforts  in  cooperating  with  the  Company  in
     obtaining a protective  order  against  disclosure  by a court of competent
     jurisdiction),  communicate or divulge any such trade secrets, information,
     knowledge or data to anyone other than the Company and those  designated by
     the Company or on behalf of the Company in the  furtherance of its business
     or to perform duties hereunder.

                      (b)    Non-Solicitation.Executive    hereby   agrees,   in
consideration of his employment hereunder and in view of the
confidential  position  to be  held  by  Executive  hereunder,  that  after  his
termination  of  employment in which he is entitled to the benefits set forth in
Section 8(a) hereof and through the second anniversary thereof,  Executive shall
not directly or indirectly  induce any employee of the Company to terminate such
employment or to become employed by any other radio broadcasting station.

                      (c)   Non-Competition.   Executive   hereby   agrees,   in
consideration of his employment hereunder and in view of the
confidential  position  to be  held  by  Executive  hereunder,  that  after  his
termination  of  employment in which he is entitled to the benefits set forth in
Section 8(a) hereof and through the second anniversary  thereof, he shall not be
employed by or perform  activities  on behalf of, or have an ownership  interest
in, any person,  firm,  corporation or other entity,  or in connection  with any
business enterprise, that is directly or indirectly engaged in any of the radio,
television,  or  related  business  activities  in  which  the  Company  and its
subsidiaries  have  significant  involvement  (other than  direct or  beneficial
ownership of up to five percent (5%) of any entity whether or not in the same or
competing business.

          (e) Blue Pencil.  The parties hereby acknowledge that the restrictions
     in this Section 10 have been  specifically  negotiated and agreed to by the
     parties  hereto and are limited  only to those  restrictions  necessary  to
     protect the  Company and its  subsidiaries  from  unfair  competition.  The
     parties hereby agree that if the scope or  enforceability of any provision,
     paragraph or  subparagraph of this Section 10 is in any way disputed at any
     time, and should a court find that such  restrictions are overly broad, the
     court may modify and enforce the covenant to the extent that it believes to
     be  reasonable  under the  circumstances.  Each  provision,  paragraph  and
     subparagraph  of this Section 10 is separable  from every other  provision,
     paragraph,  and  subparagraph  and  constitutes  a  separate  and  distinct
     covenant. Executive acknowledges that the Company operates in major, medium
     and small sized markets  throughout the United States and North America and
     that the effect of Section  10(c) may be to prevent  him from  working in a
     competitive business after his termination of employment hereunder.

                      (f) Remedies. Executive hereby expressly acknowledges that
any breach or threatened breach by Executive
of any of the terms set forth in  Section  10 of this  Agreement  may  result in
significant  and continuing  injury to the Company,  the monetary value of which
would be impossible to establish.  Therefore,  Executive agrees that the Company
shall be  entitled  to apply for  injunctive  relief  in a court of  appropriate
jurisdiction.

11. Indemnification.

          (a) General. The Company agrees that if Executive is made a party or a
     threatened to be made a party to any action,  suit or  proceeding,  whether
     civil,  criminal,  administrative  or  investigative (a  Proceeding),  by
     reason of the fact that Executive is or was a trustee,  director or officer
     of the Company or any subsidiary of the Company or is or was serving at the
     request of the Company or any subsidiary as a trustee,  director,  officer,
     member,  employee or agent of another  corporation or a partnership,  joint
     venture, trust or other enterprise,  including, without limitation, service
     with respect to employee  benefit  plans,  whether or not the basis of such
     Proceeding  is  alleged  action  in  an  official  capacity  as a  trustee,
     director,  officer,  member,  employee or agent while serving as a trustee,
     director,   officer,   member,   employee  or  agent,  Executive  shall  be
     indemnified  and  held  harmless  by  the  Company  to the  fullest  extent
     authorized  by Texas law, as the same exists or may  hereafter  be amended,
     against  all  Expenses  incurred or suffered  by  Executive  in  connection
     therewith,  and such indemnification shall continue as to Executive even if
     Executive has ceased to be an officer, director, trustee or agent, or is no
     longer employed by the Company and shall inure to the benefit of his heirs,
     executors and administrators.

          (b) Expenses.  As used in this Agreement,  the term  Expenses  shall
     include,  without  limitation,  damages,  losses,  judgments,  liabilities,
     fines, penalties,  excise taxes,  settlements,  and costs, attorneys fees,
     accountants fees,  and  disbursements  and costs of attachment or similar
     bonds,  investigations,  and  any  expenses  of  establishing  a  right  to
     indemnification under this Agreement.

          (c)  Enforcement.  If a claim or request  under this  Agreement is not
     paid by the  Company  or on its  behalf,  within  thirty  (30) days after a
     written claim or request has been received by the Company, Executive may at
     any time  thereafter  bring suit  against the Company to recover the unpaid
     amount  of the  claim or  request  and if  successful  in whole or in part,
     Executive  shall be  entitled to be paid also the  expenses of  prosecuting
     such suit. All obligations for  indemnification  hereunder shall be subject
     to, and paid in accordance with, applicable Texas law.

          (d)  Partial  Indemnification.  If  Executive  is  entitled  under any
     provision of this Agreement to indemnification by the Company for some or a
     portion of any Expenses,  but not,  however,  for the total amount thereof,
     the Company, shall nevertheless indemnify Executive for the portion of such
     Expenses to which Executive is entitled.

          (e) Advances of Expenses. Expenses incurred by Executive in connection
     with any Proceeding shall be paid by the Company in advance upon request of
     Executive that the Company pay such  Expenses;  but, only in the event that
     Executive shall have delivered in writing to the Company (i) an undertaking
     to reimburse  the Company for Expenses  with respect to which  Executive is
     not entitled to  indemnification  and (ii) an affirmation of his good faith
     belief that the standard of conduct  necessary for  indemnification  by the
     Company has been met.

          (f) Notice of Claim. Executive shall give to the Company notice of any
     claim made  against him for which  indemnification  will or could be sought
     under this  Agreement.  In addition,  Executive shall give the Company such
     information  and  cooperation as it may reasonably  require and as shall be
     within Executives power and at such times and places as are convenient for
     Executive.

          (g)  Defense  of Claim.  With  respect to any  Proceeding  as to which
     Executive notifies the Company of the commencement thereof:


          (i) The Company  will be entitled  to  participate  therein at its own
     expense; and

          (ii) Except as  otherwise  provided  below,  to the extent that it may
     wish,  the Company  will be entitled  to assume the defense  thereof,  with
     counsel reasonably  satisfactory to Executive,  which in the Companys sole
     discretion  may be  regular  counsel to the  Company  and may be counsel to
     other  officers and directors of the Company or any  subsidiary.  Executive
     also shall have the right to employ his own counsel in such action, suit or
     proceeding if he reasonably concludes that failure to do so would involve a
     conflict of interest  between  the  Company and  Executive,  and under such
     circumstances the fees and expenses of such counsel shall be at the expense
     of the Company.

          (iii) The Company  shall not be liable to  indemnify  Executive  under
     this  Agreement  for any amounts paid in  settlement of any action or claim
     effected  without its  written  consent.  The Company  shall not settle any
     action or claim in any manner which would impose any penalty or  limitation
     on Executive without Executives  written consent.  Neither the Company nor
     Executive will unreasonably withhold or delay their consent to any proposed
     settlement.

          (h)  Non-exclusivity.  The right to indemnification and the payment of
     expenses  incurred  in  defending  a  Proceeding  in  advance  of its final
     disposition  conferred  in this  Section 11 shall not be  exclusive  of any
     other right which  Executive  may have or hereafter  may acquire  under any
     statute,   provision  of  the   declaration  of  trust  or  certificate  of
     incorporation or by-laws of the Company or any subsidiary,  agreement, vote
     of shareholders or disinterested directors or trustees or otherwise.

          12. Arbitration. Except as provided for in Section 10 of this
Agreement,  if any contest or dispute arises between the parties with respect to
this  Agreement,   such  contest  or  dispute  shall  be  submitted  to  binding
arbitration  for resolution in San Antonio,  Texas in accordance  with the rules
and  procedures  of the  Employment  Dispute  Resolution  Rules of the  American
Arbitration  Association then in effect. The decision of the arbitrator shall be
final and binding on both parties,  and any court of competent  jurisdiction may
enter  judgment upon the award.  The Company shall pay all expenses  relating to
such  arbitration,  including,  but not limited to,  Executives  legal fees and
expenses, regardless of outcome.

          13. Successors; Binding Agreement.

                  (a)  Companys  Successors.  No rights or  obligations  of the
Company  under this  Agreement  may be assigned or  transferred  except that the
Company will require any  successor  (whether  direct or indirect,  by purchase,
merger,  consolidation or otherwise) to all or substantially all of the business
and/or  assets of the  Company to  expressly  assume  and agree to perform  this
Agreement  in the same manner and to the same  extent that the Company  would be
required to perform it if no such  succession  had taken place.  As used in this
Agreement,  Company  shall mean the Company as herein  before  defined and any
successor to its business and/or assets (by merger, purchase or otherwise) which
executes  and delivers  the  agreement  provided for in this Section 13 or which
otherwise  becomes bound by all the terms and  provisions  of this  Agreement by
operation of law.

                  (b)  Executives  Successors.  No  rights  or  obligations  of
Executive under this Agreement may be assigned or transferred by Executive other
than his rights to payments or benefits hereunder, which may be transferred only
by will or the laws of descent and  distribution.  Upon Executives  death, this
Agreement  and all rights of Executive  hereunder  shall inure to the benefit of
and be  enforceable by Executives  beneficiary  or  beneficiaries,  personal or
legal  representatives,  or estate,  to the extent any such  person  succeeds to
Executives  interests  under this  Agreement.  Executive  shall be  entitled to
select and change a  beneficiary  or  beneficiaries  to receive  any  benefit or
compensation payable hereunder following Executives death by giving the Company
written  notice  thereof.  In the  event  of  Executives  death  or a  judicial
determination  of his  incompetence,  reference  in this  Agreement to Executive
shall be deemed, where appropriate, to refer to his beneficiary(ies),  estate or
other legal  representative(s).  If Executive  should die  following his Date of
Termination  while any amounts would still be payable to him hereunder if he had
continued to live, all such amounts unless  otherwise  provided  herein shall be
paid in accordance with the terms of this Agreement to such person or persons so
appointed in writing by Executive,  or otherwise to his legal representatives or
estate.

                  14.  Notice.  For the  purposes  of this  Agreement,  notices,
demands and all other communications  provided for in this Agreement shall be in
writing  and  shall be deemed to have been  duly  given  when  delivered  either
personally or by United  States  certified or registered  mail,  return  receipt
requested, postage prepaid, addressed as follows:

                  If to Executive:

                  L. Lowry Mays
                  200 Concord Plaza, Suite 600
                  San Antonio, Texas 78216


                  If to the Company:

                  Clear Channel Communications, Inc.
                  200 Concord Plaza, Suite 600
                  San Antonio, Texas 78216
                  Attention: President

with a copy to:

                  Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                  1700 Pacific Avenue
                  Suite 4100
                  Dallas, Texas
                  Attention: Michael Dillard

or to such  other  address  as any party  may have  furnished  to the  others in
writing in accordance  herewith,  except that notices of change of address shall
be effective only upon receipt.

                  15.  Miscellaneous.  No  provisions  of this  Agreement may be
amended,  modified, or waived unless such amendment or modification is agreed to
in writing signed by Executive and by a duly authorized  officer of the Company,
and such  waiver is set forth in writing  and signed by the party to be charged.
No waiver by either  party  hereto at any time of any breach by the other  party
hereto of any  condition or provision of this  Agreement to be performed by such
other  party  shall be deemed a waiver of similar or  dissimilar  provisions  or
conditions  at the same or at any prior or  subsequent  time.  No  agreements or
representations,  oral or  otherwise,  express or implied,  with  respect to the
subject  matter  hereof  have been made by either  party which are not set forth
expressly  in this  Agreement.  The  respective  rights and  obligations  of the
parties  hereunder of this Agreement  shall survive  Executives  termination of
employment and the termination of this Agreement to the extent necessary for the
intended   preservation   of  such  rights  and   obligations.   The   validity,
interpretation, construction and performance of this Agreement shall be governed
by the  laws of the  State of  Texas  without  regard  to its  conflicts  of law
principles.

          16. Validity.  The invalidity or  unenforceability of any provision or
     provisions   of  this   Agreement   shall  not  affect  the   validity   or
     enforceability of any other provision of this Agreement, which shall remain
     in full force and effect.

          17.  Counterparts.  This  Agreement  may be  executed  in one or  more
     counterparts,  each of which shall be deemed to be an  original  but all of
     which together will constitute one and the same instrument.

          18. Entire Agreement.  Except as other provided herein, this Agreement
     sets forth the entire  agreement  of the  parties  hereto in respect of the
     subject  matter  contained  herein  and  supersede  all  prior  agreements,
     promises,  covenants,  arrangements,  communications,   representations  or
     warranties,   whether  oral  or  written,  by  any  officer,   employee  or
     representative  of any party  hereto in  respect  of such  subject  matter.
     Except as other provided herein,  any prior agreement of the parties hereto
     in respect of the subject matter contained herein is hereby  terminated and
     cancelled.

          20.  Withholding.  All  payments  hereunder  shall be  subject  to any
     required  withholding  of Federal,  state and local  taxes  pursuant to any
     applicable law or regulation.

          21.  Noncontravention.  The Company represents that the Company is not
     prevented from entering into, or performing  this Agreement by the terms of
     any law, order, rule or regulation, its by-laws or declaration of trust, or
     any  agreement  to which it is a party,  other than which  would not have a
     material  adverse effect on the Companys  ability to enter into or perform
     this Agreement.

          22.  Section  Headings.   The  section  headings  in  this  Employment
     Agreement are for  convenience of reference  only, and they form no part of
     this Agreement and shall not affect its interpretation.



<PAGE>


                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Agreement on the date first above written.



                                         CLEAR CHANNEL COMMUNICATIONS, INC.



                                         By:  /s/Randall Mays
                                                 Name: Randall Mays
                                                 Title: Vice President


                                         /s/L Lowry Mays
                                         L. Lowry Mays