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Exhibit 10.1    
  


 
 

ASSET PURCHASE AGREEMENT    
  


        This Asset Purchase Agreement ("Agreement"), made as of the 26 day of August, 2002, is by and among Simmons-NM,
LLC, a Utah limited liability company ("SNM"), and Simmons-NM, LS, LLC, a Utah limited liability company ("LS," and
collectively with SNM, the "Seller"), and Hispanic Broadcasting Corporation, a Delaware corporation ("Buyer"). 


RECITALS



	A.
	LS
is the licensee of Radio Stations KIOT(FM), KOSZ(FM), KKRG(FM), KRQS(FM) and KKSS(FM), licensed in New Mexico and identified on Schedule 1.1(a) hereto (the "Stations),
together with related licenses and authorizations issued by the Federal Communications Commission (the "FCC").



	B.
	SNM
is the owner of the operational assets used in the broadcasting of the Stations.



	C.
	SNM
operates and manages the Stations for LS pursuant to a License Subsidiary Management Agreement (the "Management Agreement") dated as of May 18, 2001.



	D.
	SNM
desires to sell to the Buyer substantially all of the assets relating to the operation of the Stations, and the Buyer desires to purchase such assets on the terms and conditions
contained in this Agreement.



	E.
	LS
desires to assign its Federal Communications Commission ("FCC") licenses related to the Stations to Buyer, subject to consent of the FCC and the terms of this Agreement.



	F.
	The
defined terms shall have the meanings ascribed to them in Article 13. 



WITNESSETH:  


        NOW, THEREFORE, in consideration of the mutual covenants contained herein, Seller and Buyer hereby agree as follows: 


 
 

ARTICLE 1
  ASSETS TO BE CONVEYED    
  


        1.1  Closing. Subject to (i) the provisions of  Section 10.1 and (ii) the satisfaction or, to the extent
permissible by law, waiver (by the party for whose benefit the closing condition
is imposed), on or prior to the date scheduled for the Closing, of the closing conditions set forth in Article 7 hereof, including, for example, the consent of the FCC to the transaction
contemplated by this Agreement, the closing (the "Closing") of the sale and purchase of the Station Assets (as defined in Section 1.2) shall take place in the offices of the Buyer, at
11:00 a.m., local time, on the seventh day following the satisfaction or waiver of the conditions set forth in Article 7 (or on the next normal business day if the seventh day is not a
normal business day), or at such other place, time or date as Buyer and Seller may mutually agree in writing. 


        1.2  Transfer of Assets. Subject to the terms and conditions set forth in this Agreement, Seller
hereby agrees to sell, assign, transfer, convey and deliver to Buyer on the Closing Date, and Buyer agrees to purchase all of Seller's right, title and interest in, the following assets, together with
any additions thereto (pursuant to paragraph (a) or paragraph (e) below) between the date of this Agreement and the Closing Date, free and clear of all Liens, except as otherwise
provided in this Agreement, but excluding the assets described in Section 1.3 (collectively, the "Station Assets"): 



        (a)  All
licenses, permits, construction permits, and other authorizations issued by the FCC, the Federal Aviation Administration, or any other federal, state or local
governmental authority to Seller, currently in effect and used in the conduct of the business or operations of the Stations, together with renewals or modifications thereof and any additions thereto
between the date hereof 








and the Closing Date, including, without limitation, the licenses, permits and authorizations listed on Schedule 1.2(a) attached hereto (the
licenses, permits and authorizations issued by the FCC collectively are referred to herein as the "FCC Licenses;" and the FCC Licenses and the licenses, permits and other authorizations issued by any
other governmental authority collectively are referred to herein as the "Station Licenses"); 


        (b)  All
of Seller's right, title and interest in the towers, equipment, spare parts and other tangible personal property located at the Stations' transmitters or studio site
and used exclusively in the operation of the Stations and in any other tangible personal property identified on Schedule 1.2(b) (the "Personal
Property"); 


        (c)  All
contracts which (i) are listed on Schedule 1.2(c) hereto and designated as "material contracts" (the
"Material Contracts"), (ii) are listed on Schedule 1.2(c) and designated as "other contracts" provided that, as to any such contract the
assignment of which requires the consent of a party other than Seller, such consent is obtained prior to the Closing (the "Other Contracts"), or (iii) are entered into between the date hereof
and the Closing which Seller has agreed to assign, and Buyer has agreed to assume, in writing at the Closing provided that, with respect to any such contract the assignment of which requires the
consent of a party other than Seller, such consent is obtained prior to the Closing (the "Post-Agreement Contracts"); the Material Contracts, Other Contracts and Post-Agreement
Contracts being referred to in this Agreement as the "Assumed Contracts;" 


        (d)  Seller's
public inspection file, filings with the FCC relating to the Stations, and such technical information, engineering data, rights under manufacturers' warranties
as exist at Closing and relate exclusively to the assets being conveyed hereunder; 



        (e)  All
copyrights, logos, slogans, trademarks, trade names, service marks, websites, website domain names and other intellectual property used by the Stations, as listed on  Schedule 1.2(e), together with
any associated goodwill (the "Intellectual Property"); 


        (f)    Copies
of the Assumed Contracts, and all records required by the FCC to be kept by the Stations; 


        (g)  All
of Seller's proprietary information, technical information and data, machinery and equipment warranties, maps, computer discs and tapes, plans, diagrams, blueprints
and schematics, including filings with the FCC, relating to the business and operation of the Stations; 


        (h)  All
of Seller's right, title and interest in and to the agreements with advertisers to broadcast commercial messages on the Stations ("Time Sales Agreements") which have
not been performed as of the Closing; and 


        (i)    All
of Seller's right, title and interest in and to the real property listed on Schedule 1.2(h) hereto, including,
without limitation, the fee and/or leasehold interest in the real property and all of the improvements thereon (the "Real Property"), free and clear of all Liens except as indicated on  Schedule 1.2(h) hereto. 




        1.3  Excluded Assets. The Station Assets shall not include the following: 



        (a)  All
cash, cash equivalents or similar investments such as certificates of deposit, treasury bills and other marketable securities on hand and/or in banks, deposits or
prepaid expenses of Seller; 


        (b)  All
accounts receivable of Seller; 


        (c)  Any
insurance policies, promissory notes, amounts due from employees, bonds, letters of credit, certificates of deposit, or other similar items, and any cash surrender
value in regard thereto; 


        (d)  Any
pension, profit-sharing or cash or deferred (section 401(k)) plans and trust and assets thereof any other employee benefit plan or arrangement and the assets
thereof of Seller; 










        (e)  Duplicate
copies of such records as may be necessary to enable Seller to prepare and file tax returns and reports, all original financial statements and supporting
materials, all books and records that Seller is required by law to retain, and all records of Seller relating to the sale of the Station Assets; 



        (f)    Any
interest in and to any refunds of federal, state or local franchise, income or other taxes for periods prior to the Closing; 


        (g)  All
tangible and intangible personal property disposed of or consumed between the date of this Agreement and the Closing, as permitted under this Agreement; 


        (h)  Any
other assets identified on Schedule 1.3(h); 


        (i)    The
account books of original entry and general ledges and all limited liability company records of the Seller, including, but not limited to, tax returns and transfer
books; 


        (j)    Those
agreements and arrangements for the exchange of advertising time for consideration other than money which remain in effect and unfulfilled as of the Closing Date
("Barter Obligations"); and 


        (k)  Assets
not used by Seller in the operation of the Stations. 




        1.4  Assumption of Liabilities and Obligations. As of the Closing Date, Buyer shall assume and
undertake to pay, discharge and perform all obligations and liabilities of Seller arising or accruing after the Closing under the Station Licenses, Time Sales Agreements and Assumed Contracts. Buyer
shall not assume any other obligations or liabilities of Seller or the Stations, including (i) any obligations or liabilities under any contract or agreement not included in the Assumed
Contracts, (ii) any obligation or liabilities under the Assumed Contracts relating to the period prior to the Closing except insofar as an adjustment therefore is made in favor of Buyer under  Section 2.5, (iii) any claims or pending litigation or proceedings relating to the operation of the Stations prior to the Closing,
(iv) any obligations or liabilities of Seller which are unrelated to the Stations, (v) any agreements, executed or executory, relating to the exchange of broadcast time on the Stations
for goods, wares, services, advertising, promotions, merchandising or anything other than cash, (vi) any obligations relating to current or former employees of the Stations and (vii) any
obligations relating to the Excluded Assets. 


 
 

ARTICLE 2
  PURCHASE PRICE    
  


        2.1  Purchase Price. The purchase price (the "Purchase Price") for the Station Assets shall be
$22.5 million. 


        2.2  Deposit. The Buyer has delivered $1,250,000 (the "Deposit Amount") to Star Media, as the "Escrow
Agent," subject to an escrow agreement in substantially the form set forth on Schedule 2.2. The Deposit Amount is to be held subject to the
following: 



        (a)  If
the purchase of the Assets under this Agreement is not consummated due to a breach by the Buyer of any of its obligations under this Agreement, the Seller shall be
entitled to the Deposit Amount (together with interest thereon) as liquidated damages, to compensate the Seller for the damages resulting to the Seller from such breach. 



        (b)  If
the purchase of the Assets under this Agreement is not consummated due to the failure of any of the conditions in  Section 7 (other than as a result of the Buyer's breach of any of its obligations
under this Agreement), the Seller shall not be entitled to the
Deposit Amount (or interest thereon) and,
promptly after the termination of this Agreement in accordance with Section 7, the Deposit Amount (together with interest thereon) shall be paid
by the Escrow Agent to the Buyer. 


        (c)  At
the closing, the parties shall cause the Deposit Amount (and any interest earned thereon) to be paid to the Seller. 











        2.3  Payment of Purchase Price. At the Closing, Buyer shall pay Seller the Purchase Price, less the
Deposit Amount and interest earned thereon, and subject to the prorations set forth in Section 2.5, by wire transfer of immediately available
funds to an account at a bank or other financial institution pursuant to wire transfer instructions that Seller shall deliver to Buyer at least five (5) days prior to the Closing Date. 


        2.4  Allocation. The Purchase Price shall be allocated for income tax purposes in a manner as mutually
agreed between the parties based upon an appraisal prepared by Bond & Pecaro (whose fees shall be paid by Purchaser). Such agreed allocations shall be used by the parties in preparing all
relevant tax returns, information reports and other tax documents and forms. 



        2.5  Prorations. All income and expenses arising from the conduct of the business and operations of
the Stations shall be prorated between Buyer and Seller as of 12.01 a.m. local time, on the Closing Date in accordance with generally accepted accounting principles. Such prorations shall be
based upon the principles that Seller shall be entitled to all income earned and shall be responsible for all liabilities and obligations accruing in connection with the operation of the Stations
until the Closing Date, and Buyer shall be entitled to such income earned and be responsible for such liabilities and obligations accruing in connection with the operation of the Stations thereafter.
Such prorations shall include, without limitation, all ad valorem and other property taxes (but excluding taxes arising by reason of the transfer of the Station Assets as contemplated hereby, which
shall be paid as set forth in Section 12.1 of this Agreement), deposits, utility expenses, liabilities and obligations under all Time Sales
Agreements and Assumed Contracts, rents and similar prepaid and deferred items and all other expenses attributable to the ownership and operation of the Stations; provided, however, there shall be no
adjustment for, and Seller shall remain solely liable for, any contracts or agreements not included in the Assumed Contracts and any other obligation or liability not being assumed by Buyer in
accordance with Section 1.4. All real estate taxes shall be apportioned on the basis of the number of days that each party owned the Real
Property during the relevant tax year. 


        2.6  Replacement Cost. At the closing, Seller shall pay to Buyer $130,000 by wire transfer of
immediately available funds to an account designated by Buyer as the replacement cost for the backup transmitters at each of the KKRG(FM), KOSZ(FM), and KIOT(FM) stations. 


 
 

ARTICLE 3
  REPRESENTATIONS AND WARRANTIES OF SELLER    
  



        LS and SNM, each as to itself as may be applicable, represents and warrants to Buyer that, except as otherwise disclosed in the schedules to this Agreement (the
"Schedule of Exceptions"), the following representations and warranties will be true and correct on the Closing Date, except for those representations and warranties specifically noted as being true
and correct as of the date of this Agreement through the Closing Date: 


        3.1  Organization and Standing. 



        (a)  As
of the date of this Agreement through the Closing Date, SNM (i) is a Utah limited liability company duly formed, validly existing and in good standing under
the laws of the State of Utah; (ii) is qualified to do business in the State of New Mexico; and (iii) has all necessary power and authority to carry on the business of the Stations. 


        (b)  As
of the date of this Agreement through the Closing Date, LS (i) is a Utah limited liability company duly formed, validly existing and in good standing under the
laws of the State of Utah; (ii) is qualified to do business in the State of New Mexico; and (iii) has all necessary power and authority to carry on the business of the Stations. 




        3.2  Authorization and Binding Obligation. As of the date of this Agreement through the Closing Date,
SNM and LS each has all necessary power and authority to enter into and perform its respective obligations under this Agreement and the documents contemplated hereby and to consummate the transactions
contemplated hereby and thereby. As of the date of this Agreement through the Closing Date, this Agreement has been duly executed and delivered by both SNM and LS and is enforceable in 







accordance with its terms, except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally or the availability of equitable remedies. 



        3.3  Absence of Conflicting Agreements or Required Consents. As of the date of this Agreement through
the Closing Date, the execution, delivery and performance of this Agreement and the documents contemplated hereby (with or without the giving of notice, the lapse of time, or both) by SNM and LS,
respectively: (a) do not and will not violate any provisions of their organizational documents; (b) do not and will not conflict with, result in a material breach of, constitute a
default under, or violate any applicable law, judgment, order, ordinance, injunction, decree, rule regulation or ruling of any court or governmental authority; (c) do not and will not, either
alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination of, result in a material breach of, constitute a material default under, or
accelerate or permit the acceleration of any performance
required by the terms of, any agreement, lease, instrument, license or permit to which SNM or LS is a party or by which either SNM or LS is bound; and (d) will not create any claim, liability,
mortgage, lien, pledge, condition, charge, or encumbrance upon any of the Station Assets. 


        3.4  Litigation. There is no claim, action, counterclaim, suit, litigation, labor dispute,
arbitration, or other legal, administrative, or tax proceeding, nor any order, decree, or judgment, pending, or to the knowledge of either SNM or LS threatened, against or relating to either SNM or LS
with respect to the ownership or operation of the Stations or otherwise relating to the Station Assets or the business or operations of the Stations. 


        3.5  Station and Other Licenses. 



        (a)  Schedule 1.2(a) contains a true and complete list of the Station Licenses, and there are no other licenses,
permits or other authorizations required for the lawful operation of the Stations in the manner now operated. LS has made available to Buyer true and complete copies of the Station Licenses (including
any amendments and other modifications thereto). LS is the authorized legal holder of the Station Licenses. The Station Licenses are in good standing and in full force and effect. To the best of the
knowledge of LS, the Stations and the facilities of the Stations are being operated in all material respects in accordance with the FCC Licenses and all material FCC rules and policies. 


        (b)  Except
as set forth in Schedule 1.2(a), and except for proceedings affecting the radio broadcasting industry
generally, there are no applications, petitions, complaints, investigations, forfeitures, proceedings or other actions pending or, to the best of the knowledge of either SNM or LS, threatened before
the FCC relating to the Stations or the Station Licenses. Should any such filing be made or action initiated, SNM and LS shall promptly notify Buyer thereof. To the best of the knowledge of SNM and
LS, the Stations' transmission towers and equipment have been operated and maintained by SNM in material compliance with the Communications Act and the rules and regulations of the FCC and the Federal
Aviation Administration ("FAA"), and the towers have been properly registered with the FCC and approved by the FAA as necessary. 


        (c)  LS
is qualified to hold the FCC Licenses. 


        (d)  In
addition to the Station Licenses, to the best of the knowledge of SNM and LS, either SNM and LS, as may be the case, possess all licenses and other required
governmental or official approvals, permits or authorizations, the failure to possess which would have a material adverse effect on the business, financial condition or results of operations of the
Stations. To the knowledge of SNM and LS, such licenses, approvals, permits and authorizations are in full force and effect, SNM or LS, as the case may be, is in compliance with their requirements and
no proceeding is pending or threatened to revoke or amend any of them. Schedule 1.2(a) contains a complete list of such licenses, approvals, permits and authorizations. 




        3.6  Title to and Condition of Real and Personal Property. 



        (a)  Except
as disclosed on Schedule 1.2(b), SNM and LS, respectively, have good and marketable title to the Personal
Property free and clear of all Liens. Except as disclosed on Schedule 1.2(h), SNM has either (i) good and marketable title to the Real
Property which is 








indicated on Schedule 1.2(h) as being owned by Seller ("Owned Real Property") or (ii) valid leasehold interest in and to the Real
Property which is indicated on Schedule 1.2(h) as being leased by SNM ("Leased Real Property"), in each case free and clear of all Liens. LS owns
no real property, nor does it have any leasehold interests in real property. The buildings, structures and improvements situated on the Owned Real Property are in good condition and repair, reasonable
wear and tear excepted, and are adequate and sufficient to carry on the operations of the Stations as presently conducted. 


        (b)  At
the Closing, the Personal Property will be in reasonable condition and working order, ordinary wear and tear excepted, and reasonably suitable for the uses for which
intended, free from any defects known to either SNM or LS, normal wear and tear excepted, and will be in material compliance with the published rules and regulations of the FCC and, to the best of the
knowledge of SNM or LS, all other applicable federal, state and local statutes, ordinances, rules and regulations. 


        (c)  Both
the Personal Property and the Real Property are available for immediate use in the operation of the Stations. SNM has not received written notice of any violation
of law, municipal or county ordinances or other legal requirements with respect to the Real Property or with respect to the use, occupancy or construction thereof. SNM has not received any written
notice of any pending or threatened termination or impairment of access to the Real Property or discontinuation of necessary sewer, water, electrical, gas, telephone or other utilities or services. 


        (d)  SNM
has not received any written notice (i) that either the whole or any portion of the Real Property is to be condemned, requisitioned or otherwise taken by any
public authority, (ii) of violation of restrictive covenants, deed restrictions or governmental requirements on the Real Property which have not been remedied, (iii) of any proceedings
which would cause the change, redefinition or other modification of the zoning classification or (iv) any proceedings to widen or realign any street or highway adjacent to the Real Property. 




        3.7  Assumed Contracts. To the best of the knowledge of SNM and LS, respectively, the Assumed
Contracts are in full force and effect and are legally valid, binding and enforceable by Seller in accordance with their respective terms, except as limited by laws affecting creditor's rights or
equitable principles generally. To the best of the knowledge of SNM and LS, respectively, neither SNM nor LS is in any material respect in default under Assumed Contracts. 


        3.8  Compliance with Laws. To the best of the knowledge of SNM and LS, SNM and LS, respectively, have
complied in all material respects with, and neither is in any material respect in violation of, any federal, state or local laws, statutes, rules, regulations or orders relating to the ownership and
operation of the Stations. 


        3.9  Broker's Fees. As of the date of this Agreement through the Closing Date, other than a payment
owed by Seller to Star Media Group, neither Seller nor any person or entity acting on Seller's behalf has agreed to pay a commission, finder's fee or similar payment in connection with this Agreement
or any matter related hereto to any person or entity, and no person or entity is entitled to any such payment from Seller in connection with the transactions contemplated by this Agreement. 



        3.10 Consents. As of the date of this Agreement, except for the FCC Consent provided in  Section 5.1 and the consents with
respect to certain of the Material Contracts so designated on  Schedule 1.2(c), no consent, approval, permit, or authorization of, or declaration to, or filing with any governmental or regulatory
authority or
any other third party is required (a) to consummate the transactions contemplated hereby; or (b) to permit either SNM or LS to assign or transfer the Station Assets to Buyer. The
assignment or transfer of the Material Contracts, including leases, shall be completed at no additional cost to Buyer, and Seller shall save and hold Buyer harmless from any and all such costs. 



        3.11 Taxes. 



        (a)  SNM
and LS has each filed all federal, state, county and local tax returns and reports required to be filed by them with respect to taxes for which successor liability
will apply, including 








payroll, property, withholding, social security, sales and use taxes, to the extent that such taxes relate to the Station Assets; have either paid in full all such taxes that have become due, as
reflected on any return or report, and any interest and penalties with respect thereto or have fully accrued on its books or have established adequate reserves for all taxes payable but not yet due;
and have made required cash deposits with appropriate governmental authorities representing estimated payments of taxes, including employee withholding tax obligations. No extension or waiver of any
statute of limitations or time within which to file any return has been granted to or requested by either SNM or LS with respect to any such tax. No unsatisfied deficiency, delinquency or default for
any such tax, assessment or governmental charge has been assessed (or, to the knowledge of either Seller, claimed or proposed) against SNM or LS, nor has either SNM or LS received notice of any such
deficiency, delinquency or default. 


        (b)  SNM
and LS have paid all required state, county, and local sales tax resulting from sales made in Albuquerque, New Mexico, as such taxes relate to the Station Assets. 




        3.12 Reports. All reports and statements that either SNM or LS are required to file with the FCC in
respect of the Stations have been filed, and all reporting requirements of the FCC have been complied with in all material respects. 


        3.13 Trademarks and Similar Rights. To the knowledge of SNM and LS, respectively, the use of the
Intellectual Property in connection with the conduct or operation of the Stations has not infringed, is not infringing upon and is not otherwise violating the rights of any third party in or to such
Intellectual Property or the asserted proprietary rights of others, and no notices have been received by either SNM or LS that the use of the Intellectual Property in connection with the conduct or
operation of the Stations infringes upon or otherwise violates any rights of a third party in or to the Intellectual Property or the proprietary rights of others. 


        3.14 Financial Statements of the Stations. SNM and LS have previously delivered to Buyer the
unaudited balance sheet and income statement for the Stations as of and for the year ended December 31, 2001 and unaudited balance sheet and income statement as of and for the seven
(7) months ended July 31, 2002. These financial statements have been prepared in all material respects in accordance with generally accepted accounting principles consistently followed
by SNM and LS throughout the periods indicated (except that they may omit certain footnotes required by such principles and the interim financial statements do not reflect normal year-end
adjustments and accruals) and fairly present financial position of the Stations as of the respective dates of the balance sheets included and the results of their operations for the respective periods
indicated. 


        3.15 Absence of Changes in Seller's Business Operations. With reference to the Station Assets and the
operations of the Stations, from May 31, 2002 to the date hereof, there has not been any: 



        (a)  Transaction
by SNM or LS related to the Stations entered into except in the ordinary course of business; 


        (b)  Material
adverse change in the financial condition, liabilities, assets, business or prospects of SNM or LS with respect to the Stations; 



        (c)  Destruction,
damage, or loss of any asset of SNM or LS (insured or uninsured) that materially and adversely affects the financial condition, business, or prospects of
SNM or LS with respect to the Stations; 


        (d)  Material
change in accounting methods or practices (including any change in depreciation or amortization policies or rates) by SNM or LS with respect to the Stations; 


        (e)  Sale
or transfer of any material asset used by either SNM or LS in the operation of the Stations, except in the ordinary course of business; 



        (f)    Amendment
or termination of any contract, agreement, or license related to the operation of the Stations, except in the ordinary course of business; 


        (g)  Commencement
or notice or threat of commencement of any civil litigation or any governmental proceeding against or investigation of SNM or LS or the affairs of either of
them; or 










        (h)  Labor
trouble or claim of wrongful discharge or other unlawful labor practice or action. 




        3.16 Personnel. 



        (a)  Neither
SNM nor LS is a party to or subject to any collective bargaining agreements with respect to the Stations. To the best knowledge of SNM and LS, there is no
representation or organizing effort pending or threatened against or involving or affecting either SNM or LS, as the case may be, with respect to employees employed at the Stations. There is no
pending or, to the knowledge of SNM and LS, threatened labor dispute, strike, or work stoppage affecting the Stations. 


        (b)  Each
employee benefit plan that is maintained by SNM or LS or any member of either company's controlled group of companies (within the meaning of Code
Section 414) and in which any Covered Employee participates and that is intended to be "qualified" under Code Section 401(a) has been determined by the Internal Revenue Service to be so
qualified (or an application for such a determination has been filed with the Internal Revenue Service); no event has occurred that would have a material adverse effect on the qualified status of any
such employee benefit plan; and each trust maintained in connection with each such employee benefit plan is tax-exempt under Code Section 501(a). 


        (c)  Neither
SNM nor LS maintains or has maintained, contributes to or has contributed to, or otherwise has any liability for or obligation under any employee pension benefit
plan that is a defined benefit plan (as described in Section 3(35) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or a multiemployer plan (as described in ERISA
Section 4001(a)(3)). 




        3.17 Environmental Matters. In respect of the Real Property: 



        (a)  SNM
has not received any written notice from any governmental authority that SNM is in violation or alleged violation of any judgment, decree, order, law, license, rule
or regulation pertaining to environmental matters, including, without limitation those arising under the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 as amended ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, the Federal Water Pollution Control Act, the Solid Waste Disposal Act, as amended, the
Federal Clean Air Act, the Toxic Substances Control Act, or any state or local statute, regulation, ordinance, order or decree relating to the environment, (hereinafter "Environmental Laws"); 



        (b)  SNM
has not received written notice from any third party, including without limitation any federal, state or local governmental authority, that any hazardous waste, as
defined by 42 U.S.C. §6903(5), any hazardous substance as defined by 42 U.S.C. §9601(33) or any toxic substance, oil or hazardous material or other hazardous chemical or
hazardous substance regulated by any Environmental Laws ("Hazardous Substances") which SNM has generated, transported or disposed of has been found at any site at which a federal, state or local
agency or other third party has conducted or has ordered that SNM conduct a remedial investigation, removal or other response action pursuant to any Environmental Law; 



        (c)  No
portion of any of the Real Property has been used by SNM for the handling, manufacturing, processing, storage or disposal of Hazardous Substances in material
violation of applicable Environmental Laws; and 


        (d)  To
the knowledge of SNM, there have been no releases (i.e., any past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, disposing or dumping) by SNM or threatened releases by SNM of Hazardous Substances on, upon, into or from any of the Real Property in material violation of applicable
Environmental Laws. 




        3.18 Tower Height. The Sandia Peak, KSOZ(FM) tower measures 60' high from the base terrain. 







 
 

ARTICLE 4
  REPRESENTATIONS AND WARRANTIES OF BUYER    
  


        Buyer represents and warrants to Seller as follows: 


        4.1  Organization and Standing. Buyer is a corporation duly formed, validly existing and in good
standing under the laws of the State of Delaware. 


        4.2  Authorization and Binding Obligation. Buyer has all necessary power and authority to enter into
and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement and all other documents required hereby have been duly executed and delivered by
Buyer and constitute valid and binding obligations enforceable against Buyer in accordance with their terms except as may be limited by applicable bankruptcy, insolvency or similar laws affecting
creditors' rights generally or the availability of equitable remedies. 


        4.3  Absence of Conflicting Agreements or Required Consents. Except for the FCC Consent, the
execution, delivery and performance of this Agreement by Buyer: (a) do not and will not violate any provision of Buyer's organizational documents; (b) do not and will not require the
consent of any third party or governmental authority; (c) do not and will not violate any law, judgment, order, injunction, decree, rule, regulation or ruling of any governmental authority; and
(d) do not and will not, either alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination or acceleration of or result in a breach of
the terms, conditions or provisions of, or constitute a default under, any agreement, lease, instrument, license or permit to which Buyer is now subject. 


        4.4  Absence of Litigation. There is no claim, litigation, arbitration or proceeding pending or, to
the best of Buyer's knowledge, threatened, before or by any court, governmental authority or arbitrator, that seeks to enjoin or prohibit, that questions the validity of or that might materially
hinder or impair Buyer's performance of its obligations under this Agreement. 


        4.5  FCC Qualifications. To the best of Buyer's knowledge, Buyer is qualified under the Communications
Act of 1934, as amended, and the rules and regulations of the FCC to be the assignee of the FCC Licenses, it being understood that Buyer has a duty to ascertain what would cause it to lose such
qualification. There are no facts known to Buyer that would delay the consummation of the transactions contemplated by this Agreement. Buyer has no reason to believe that the FCC assignment
contemplated hereby might be challenged or might not be granted by the FCC in the ordinary course solely because of its qualifications. 


        4.6  Broker's Fees. Neither Buyer nor any person or entity acting on its behalf has agreed to pay a
commission, finder's fee or similar payment in connection with this Agreement or any matter related hereto to any person or entity, and no person or entity is entitled to any such payment from Buyer
in connection with the transactions contemplated by this Agreement. 


        4.7  Financial Qualifications. Buyer is financially qualified to consummate the transactions
contemplated by this Agreement and to certify to its financial qualifications on FCC Form 314. 


        4.8  Seller's Representations and Warranties. Buyer has not relied on or been induced to enter into
this Agreement by any statement, representation or warranty other than those expressly set forth in Article 3 of this Agreement. 


 
 

ARTICLE 5
  GOVERNMENTAL CONSENTS    
  


        5.1  FCC Application. 



        (a)  The
assignment of the FCC Licenses as contemplated by this Agreement is subject to the prior consent and approval of the FCC. Prior to the Closing, Buyer shall not
directly or indirectly control, supervise, direct, or attempt to control, supervise, or direct, the operations of the Stations, 








and all such operations, including complete control and supervision of all of the Stations' programs, employees, and policies, shall be the sole responsibility of Seller until the Closing. 



        (b)  No
later than ten (10) days after the date of this Agreement, Buyer and Seller shall prepare and jointly file a complete and grantable FCC Application, and
the parties shall use reasonable efforts to cause the FCC to accept the FCC Application for filing as soon as practicable. Seller and Buyer shall thereafter prosecute the FCC Application in good faith
and with all reasonable diligence and otherwise use their best efforts to obtain the grant of the FCC Application as expeditiously as practicable; provided, however, that neither Seller nor Buyer
shall have any obligation to satisfy any complainant or the FCC by taking any steps which would have a material adverse effect upon Seller or Buyer or upon any affiliated entity, but neither the
expense nor inconvenience to a party of defending against a complainant or an inquiry by the FCC shall be considered a material adverse effect on such party. If the FCC Consent imposes any condition
on any party hereto, such party shall use its best efforts to comply with such condition; provided, however, that no party shall be required to comply with any
condition that would have a material adverse effect upon it or any affiliated entity. If rehearing, reconsideration or judicial review is sought by a third party or by the FCC on its own motion with
respect to the FCC Consent, Buyer and Seller shall vigorously oppose such efforts for rehearing, reconsideration or judicial review; provided, however, that nothing herein shall be construed to limit
either party's right to terminate this Agreement pursuant to Article 10 (Termination Rights). 



        (c)  All
FCC filing or grant fees with respect to the assignment of the FCC Licenses from Seller to Buyer shall be paid equally by Buyer and Seller. Each party shall
otherwise bear its own costs and expenses (including the fees and disbursements of its counsel) in connection with the preparation of the portion of the FCC Application to be prepared by it and in
connection with the processing and defense of the application. 




        5.2  Other Filings and Governmental Consents. Promptly following the execution of this Agreement, the
parties shall prepare and file with the appropriate governmental authorities any other requests for approval or waiver that are required from such governmental authorities in connection with the
transactions contemplated hereby and shall diligently and expeditiously prosecute, and shall cooperate fully with each other in the prosecution of, such requests for approval or waiver and all
proceedings necessary to secure such approvals and waivers. Each party shall bear its own costs and expenses in connection with the preparation of any filings, documents or requests to be prepared by
it in order to obtain such governmental consents, approvals or waivers and in connection with any prosecution or defense by it of such filings, documents or requests. 


 
 

ARTICLE 6
  COVENANTS    
  


        6.1  Conduct of Business. 



        (a)  Affirmative Covenants. Between the date of this Agreement and the Closing Date; except as expressly permitted by this
Agreement or with the prior written consent of Buyer, which consent shall not be unreasonably withheld, Seller shall: 



        (i)    Comply
in all material respects with all laws applicable to Seller's use of the Station Assets and continue to operate and maintain the Stations in conformity with the
Station Licenses, the Communications Act of 1934, as amended, and the rules and regulations of the FCC. 


        (ii)  Maintain
the Station Assets in customary repair, maintenance and condition. 


        (iii)  Use
reasonable efforts to obtain the consent of any third party necessary for the assignment to Buyer, without any material adverse change, of the contracts listed on
Schedule 1.2(c). 












        (iv)  Timely
make or provide all payments, services or other consideration due for the Assumed Contracts so that all payments required to be made as of the Closing Date will
have been paid, except for any amounts being contested by Seller in good faith. 


        (v)  Maintain
in full force and effect the Station Licenses and all other licenses, permits and authorizations relating to the Stations and take any action necessary before
the FCC, including the preparation and prosecution of applications for renewal of the FCC Licenses, if necessary, to preserve such licenses in full force and effect without material adverse change. 


        (vi)  Maintain
insurance on the Station Assets. 


        (vii) To
the extent Seller may do so without penalty, terminate, or send notice of termination of, such of the Assumed Contracts as Buyer may request. 


        (viii)Use
its best efforts to complete all of the Stations' Barter Obligations prior to the Closing. 


        (ix)  Exercise
all renewal options on the transmitter site leases for which notice of renewal would be required to be given prior to the Closing. 


        (x)  Intentionally Deleted. 


        (xi)  Repair,
at its expense, all items of Personal Property included in the Station Assets to the extent Buyer's inspection of same reveals items which, in the reasonable
opinion of Buyer, require such repair. 




        (b)  Negative Covenants. Between the date of this Agreement and the Closing Date, except as expressly permitted by this
Agreement or with the prior written consent of Buyer, which consent shall not be unreasonably withheld, Seller shall not: 



        (i)    Terminate,
modify or amend any Assumed Contract except as contemplated in Section 6.1(a)(vii). 


        (ii)  Create
any Lien on any of the Station Assets. 


        (iii)  Sell,
assign, lease or otherwise transfer or dispose of any of the material Station Assets now owned or hereafter acquired, except for assets consumed or disposed of
in the ordinary course of business. 





        6.2  Access. Between the date hereof and the Closing Date, Seller will afford Buyer reasonable access
to the Stations and the Station Assets. Buyer, at its sole expense, shall be entitled to make such engineering and other inspections of the Station Assets as Buyer may desire, so long as such
inspection would not unreasonably interfere with the operation of the Stations. 



        6.3  No Inconsistent Action. Between the date of this Agreement and the Closing, each party shall use
its reasonable efforts to cause the fulfillment at the earliest practicable date of all of the conditions to the obligations of the other party to consummate the sale and purchase and shall take no
actions which are inconsistent with its obligations under this Agreement or that would materially hinder or delay the consummation of the transactions contemplated by this Agreement. In particular,
neither party shall take any action that would jeopardize the Station Licenses, result in its disqualification to hold the FCC Licenses or in any way delay grant of the FCC Application or consummation
of the transactions contemplated by this Agreement, and Buyer shall take no action which would impair its financial or other qualifications to consummate this transaction in accordance with its terms.
Should either party become aware of any such fact or circumstance, such party shall promptly inform the other. 


        6.4  Confidentiality.



        (a)  Buyer
and Seller shall each keep confidential all information obtained by it with respect to the other in connection with this Agreement, except where such information
is known through other lawful sources or where its disclosure is required in accordance with applicable law. If the transactions contemplated hereby are not consummated for any reason, Buyer and
Seller shall 








return to the other, without retaining a copy thereof in any medium whatsoever, any schedules, documents or other written information, including all financial information, obtained from the other in
connection with this Agreement and the transactions contemplated hereby. Except as is required for the consummation of the transaction contemplated by this Agreement, during the period from the date
hereof through the Closing Date, both Buyer and Seller shall also keep confidential the fact that the parties have entered into this Agreement and all other matters relating to this transaction. 


        (b)  Except
as required by the FCC in connection with the filing of the FCC Application, without the prior consent of both Buyer and Seller, there shall be no public
announcement relating to this Agreement. 




        6.5  Further Assurances. Seller and Buyer shall cooperate and take such actions, and execute such
other documents, at the Closing or subsequently, as may be reasonably requested by the other in order to carry out the provisions and purposes of this Agreement, including, for example, promptly
advising each other of all communications relevant to the transactions contemplated by this Agreement received from the FCC after the date of this Agreement and furnishing each other with copies of
all such written communications and summaries of all such oral communications. 


        6.6  Intentionally Deleted. 


        6.7  Employees; ERISA. 



        (a)  Employment. The Buyer may, but is not obligated to, offer employment to any or all of the employees of the Stations in
positions and on terms substantially similar to their present employment. To the extent the Buyer employs any employees of the Stations and terminates such employees after the Closing, the Buyer
(except as set forth in the last sentence of this paragraph) shall be responsible for any severance pay owed to such employee of the Stations that the Buyer terminates within one year after the
Closing Date. To the extent the employees are not offered employment with Buyer and are terminated by Seller, the Seller shall pay to any such employee severance in accordance with the policy of the
Stations. Further, to the extent that Buyer employs the general manager of the Station, R. Bruce Pollock ("the GM"), and assumes his employment contract, and within one year from the Closing Date, the
GM's employment is terminated in such a manner as to require a one-year severance payment as provided for in the GM employment contract, Seller agrees to reimburse Buyer for such amount. 



        (b)  Employee Benefits Generally. The Buyer shall provide all employees of the Stations that become employees of the Buyer
("Covered Employees") employee benefits that are maintained by the Buyer generally for its employees (the "HBC Plans") in accordance with their terms. To the extent permitted by the terms of the HBC
Plans, the Buyer will (i) waive all deductibles, waiting periods and limitations with respect to pre-existing conditions and other conditions applicable to employees of Seller under
the HBC Plans, and (ii) grant full past service credit (including credit for eligibility, benefit accrual and for vesting) to the Covered Employees for service with Seller or its subsidiaries
or affiliates under any and all of the HBC Plans. Neither this Agreement nor the consummation of the transactions contemplated by this Agreement will entitle any employee, including but not limited
to, Covered Employees, to any other severance benefits nor will it accelerate compensation due any such Covered Employee as of the Closing Date. Subject to the foregoing, the Buyer shall have the
right in the good faith exercise of
operations and managerial discretion to make changes or cause changes to be made after the Closing Date in compensation, benefits and other terms of employment and to terminate any such employee. 


        (c)  Transition Services. Buyer may identify one or more employees of the Stations that Buyer does not intend to hire on a
permanent basis and become Covered Employees but as to whom Buyer would desire to receive assistance, for a period not to exceed 60 days after Closing, in connection with the transition of the
operations of the Stations to Buyer. As to these employees, Seller will use reasonable efforts to continue the employment of such persons for such transition period after the Closing; provided,
however, that Buyer shall reimburse Seller for its incremental 











out-of-pocket costs associated with the continued employment of such persons during said transition period. 




        6.8  Cooperation Relative to Accounts Receivable. Following the Closing Date, the Buyer shall
(i) assist the Seller, as reasonably requested in the collection of the Accounts Receivable for a period of 120 days (it being understood that Buyer is not required to expend any of its
own funds in connection therewith), (ii) endorse and deliver to the Seller, on or before the 15th, 30th, 45th, 60th, 75th,
90th, and 120th days following the Closing Date (each, a "Turnover Date") and thereafter, any checks or other instruments received by the Buyer in respect of the Seller's
Accounts Receivables. In addition, the Buyer hereby agrees and acknowledges (a) that the Accounts Receivable are solely the property of the Seller, (b) that all payments received by the
Buyer or Buyer's lender on account of the Accounts Receivable shall be held in trust for the benefit of the Seller, (c) that payments received from customers of the Buyer that owe payments to
the Buyer in respect of the operations of the Stations and also owe payments to the Seller shall be applied first and to the full extent to Seller's Accounts Receivable (unless otherwise specified by
the payor), and (d) that all such payments shall be delivered to the Seller together with any necessary endorsements thereon, on each Turn Over Date and thereafter. To the extent that Seller
has not received payment on any Accounts Receivable as of the 120th day following the Closing Date, the Buyer shall have no further obligation or right to collect the Accounts Receivable, unless
otherwise agreed upon by the Seller and the Buyer and the Buyer shall promptly return any and all documentation related to the Accounts Receivable to the Seller. Notwithstanding the foregoing, Buyer
shall have no obligation to contact account debtors or undertake other collection efforts in respect of the Seller's Accounts Receivables except as specifically provided in this paragraph. 


        6.9  ADA Compliance. On or before the Closing, Seller shall, at Seller's sole cost and expense, bring
that certain two-story office building located at 8009 Marble Avenue NE, Albuquerque, New Mexico (as more specifically set forth on Schedule 1.2(h), the "Studios") into compliance
with all federal, state and local laws (including the Americans with Disabilities Act ("ADA")), which shall include, but not be limited to, installing an ADA compliant access lift (which does not have
to be an elevator), and remedy all such other non-compliant issues (whether or not ADA compliance issues), reasonable wear and tear excepted, that are identified on any
pre-closing inspection performed at the direction of Buyer, and reasonably agreed to by the parties. 


        6.10 Barter. Seller shall ensure that at the Closing Date, any and all barter obligations existing
under any Assumed Contracts will not in the aggregate exceed $25,000. 


        6.11 Dish. On or before the Closing, Seller shall relocate that certain dish that is located on or
near the Studios and encroaches on the neighboring property so that it does not encroach on the neighboring property. Prior to relocating that certain dish, Seller shall obtain Buyer's written consent
to such relocation. 


        6.12 Billboard. Seller shall proceed to close the contract being negotiated with Clear Channel
Outdoor for that certain billboard designated as Location #30512; provided, however, that Seller shall keep Buyer apprised of negotiation progress and give Buyer the right to comment on such contract
prior to its closing. 


        6.13 AM Stations. Prior to the expiration of 60 days following the Closing, Seller shall move
all of its operations that pertain to the Excluded Assets out of the Studios. Prior to the expiration of such 60-day period Buyer shall allow such operations to remain in the Studios. 


        6.14 Arbitron Agreement. During the term of that certain Station License Agreement to Receive and Use
Arbitron Radio Listening Estimates, Seller shall reimburse Buyer for 2/7 of all costs incurred by Buyer associated with and relating to performance under such contract. Seller's
obligations under this Section 6.14 shall survive closing. 







 
 

ARTICLE 7
  CONDITIONS PRECEDENT    
  



        7.1  To Buyer's Obligations. The obligations of Buyer hereunder are, at its option, subject to
satisfaction or waiver by Buyer (except for prior FCC consent), at or prior to the Closing Date, of each of the following conditions: 



        (a)  Representations, Warranties and Covenants. 



        (i)    All
representations and warranties made by Seller in this Agreement shall be true and correct in all material respects (except as otherwise expressly permitted by this
Agreement) on and as of the Closing Date as if made on and as of that date. 


        (ii)  All
of the terms, covenants and conditions to be complied with and performed by Seller under this Agreement on or prior to Closing Date shall have been complied with or
performed by Seller in all material respects. 




        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Buyer except those that are customary in the assignment of FM licenses. LS shall have complied with any conditions imposed on it by the FCC Consent, and (solely in the event that a petition to deny
was filed in connection with the FCC Consent) the FCC Consent shall have become a Final Order (unless Buyer elects to waive the Final Order). 


        (c)  No Injunction. No order of any court or administrative agency shall be in effect which restrains or prohibits the
transactions contemplated by this Agreement in accordance with its terms. 


        (d)  Governmental Authorizations. LS shall be the holder of all FCC Licenses, and there shall not have been any modification
of any Station License relating to the Stations that could have an adverse effect on the Stations or the conduct of the business and operations of the Stations. No proceeding (other than proceedings
affecting the broadcasting industry generally) shall be pending which presents a substantial probability of revocation, failure to renew, suspension or materially adverse modification of any FCC
License. 


        (e)  Consents. Seller shall have obtained all necessary approvals and consents to the assignment to Buyer of each Assumed
Contract without any adverse change in the terms or conditions of such contracts. 


        (f)    Deliveries. Seller shall have made or stand willing to make all deliveries required under  Section 8.1. 


        (g)  Title Insurance. A title insurance company reasonably acceptable to Buyer shall be prepared to issue an owner's title
insurance policy in a standard ALTA form insuring Buyer's fee simple title to the Owned Real Property, free and clear of all Liens, subject only to the delivery of the documents, materials and funds
described in Section 8.1, the recordation of the grant deed referred to Section 8.1 and
payment of the applicable title insurance premiums. 




        7.2  To Seller's Obligations. The obligations of Seller hereunder are, at its option, subject to
satisfaction or waiver by Seller (except for prior FCC Consent), at or prior to the Closing Date, of each of the following conditions: 



        (a)  Representations, Warranties and Covenants. 



        (i)    All
representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects (except as otherwise expressly permitted by this
Agreement) on and as of the Closing Date as if made on and as of that date. 


        (ii)  All
of the terms, covenants and conditions to be complied with or performed by Buyer under this Agreement on or prior to the Closing Date shall have been complied with
or performed by Buyer in all material respects. 













        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Seller except those that are customary in the assignment of FM licenses. Buyer shall have complied with any conditions imposed on it by the FCC Consent, and (solely in the event that a petition to
deny was filed in connection with the FCC Consent) the FCC Consent shall have become a Final Order (unless Seller elects to waive the Final Order). 


        (c)  No Injunction. No order of any court or administrative agency shall be in effect which restrains or prohibits the
transactions contemplated by this Agreement in accordance with its terms. 


        (d)  Deliveries. Buyer shall have made or stand willing to make all the deliveries required under  Section 8.2 and shall have paid or stand willing to pay the
Purchase Price as provided in  Section 2.3. 


        (e)  Consent. All necessary approvals and consents to the assignment to Buyer of each Assumed Contract shall have been
obtained. 



 
 

ARTICLE 8
  DOCUMENTS TO BE DELIVERED AT THE CLOSING    
  


        8.1  Documents to be Delivered by Seller. At the Closing, Seller shall deliver to Buyer the following: 



        (a)  Copies
of resolutions of the managers of SNM and LS authorizing the execution, delivery and performance of this Agreement by SNM and LS, respectively, and the
consummation of the transactions contemplated hereby, certified by a duly authorized officer or manager of SNM and of LS, as being true, correct and complete as of the Closing Date; 


        (b)  A
certificate, dated as of the Closing Date, executed by an officer or manager of SNM and of LS, certifying that the closing conditions specified in  Section 7.1(a) have been satisfied; 


        (c)  Duly
executed instruments of conveyance and transfer, in form and substance reasonably satisfactory to Buyer, effecting the sale, transfer, assignment and conveyance of
the Station Assets to Buyer free and clear of all Liens, including, but not limited to, the following: 



        (i)    an
assignment of the FCC Licenses; 


        (ii)  bills
of sale for all Personal Property; 


        (iii)  a
grant deed for any Owned Real Property; and 


        (iv)  an
assignment of Seller's rights under the Assumed Contracts; 




        (d)  A
copy of any instrument evidencing receipt of any of the required consents described in Section 7.1(e); 


        (e)  Such
other documents, information, certificates and materials as may be required by this Agreement. 




        8.2  Documents to be Delivered by Buyer. At the Closing, Buyer shall deliver to Seller the following: 



        (a)  Copies
of resolutions of the board of directors of Buyer authorizing the execution, delivery and performance of this Agreement by Buyer and the consummation of the
transactions contemplated hereby; 


        (b)  A
certificate, dated as of the Closing Date, executed on behalf of Buyer by a duly authorized representative of Buyer, certifying that the closing conditions specified
in Section 7.2(a) have been satisfied; 


        (c)  The
Purchase Price in immediately available wire transferred federal funds as provided in Section 2.3; and 



        (d)  Such
other documents, information, certificates and materials as may be required by this Agreement. 










 
 

ARTICLE 9
  INDEMNIFICATION, SURVIVAL    
  



        9.1  Seller's Indemnities. From and after the Closing, Seller shall indemnify, defend, and hold
harmless Buyer and its affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person
claiming by or through any of them, from and against, and reimburse them for, all claims, damages, liabilities, losses, costs and expenses, including, without limitation, interest, penalties, court
costs and reasonable attorneys' fees and expenses, resulting from: 



        (a)  The
ownership or operation of the Station Assets prior to the Closing, including without limitation any liabilities arising under the Station Licenses or the Assumed
Contracts which relate to events occurring prior to the Closing; 


        (b)  Any
liabilities of Seller not assumed by Buyer under this Agreement, including without limitation any liabilities arising at any time under any contract or agreement not
included in the Assumed Contracts; 



        (c)  Any
untrue representation, breach of warranty or nonfulfillment of any covenant by Seller contained in this Agreement or in any certificate, document or instrument
delivered by Seller to Buyer under this Agreement; 


        (d)  Any
failure of Seller to comply with any "bulk sales" laws applicable to the transactions contemplated hereby; or 


        (e)  Any
actions, suits, proceedings, claims, demands, assessments, judgments, costs and expenses, including reasonable legal fees and expenses, incident to any of the
foregoing or incurred in investigating or attempting to avoid the same or to oppose the imposition thereof, or in enforcing this indemnity. 




        9.2  Buyer's Indemnities. From and after the Closing, Buyer shall indemnify, defend and hold harmless
Seller and its affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person claiming
by or through any of them, from and against, and reimburse them for, all claims, damages, liabilities, losses, costs and expenses, including, without limitation, interest, penalties, court costs and
reasonable attorneys' fees and expenses, resulting from: 



        (a)  any
untrue representation, breach of warranty or nonfulfillment of any covenant by Buyer contained in this Agreement or in any certificate, document or instrument
delivered by Buyer to Seller under this Agreement; 


        (b)  the
ownership or operation of the Station Assets from and after the Closing; 


        (c)  any
actions, suits, proceedings, claims, demands, assessments, judgments, costs and expenses, including reasonable legal fees and expenses, incident to any of the
foregoing or incurred in investigating or attempting to avoid the same or to oppose the imposition thereof, or in enforcing this indemnity; or 



        (d)  any
liability or obligations assumed by Buyer under this Agreement or arising from the conduct of Buyer after the Closing Date. 




        9.3  Procedure for Indemnification. The procedure for indemnification shall be as follows: 



        (a)  The
party seeking indemnification under this Article 9 (the "Claimant") shall give notice to the party from whom indemnification is sought (the "Indemnitor") of
any claim, reasonably specifying (i) the factual basis for the claim; and (ii) the amount of the claim if then known. If the claim relates to an action, suit or proceeding filed by a
third party against Claimant, notice shall be given by Claimant within fifteen (15) days after written notice of the action, suit or proceeding was given to Claimant. In all other
circumstances, notice shall be given by Claimant within thirty (30) days after Claimant becomes aware of the facts giving rise to the claim. Notwithstanding the 








foregoing, Claimant's failure to give Indemnitor timely notice shall not preclude Claimant from seeking indemnification from Indemnitor if Claimant's failure has not materially prejudiced
Indemnitor's ability to defend the claim or litigation. 


        (b)  The
Claimant shall make available to Indemnitor and/or its authorized representatives the information relied upon by the Claimant to substantiate the claim for
indemnity. 


        (c)  With
respect to any claim by a third party as to which the Claimant is entitled to indemnification hereunder, the Indemnitor shall defend against the claim with counsel
reasonably acceptable to Claimant, and the Claimant shall cooperate fully with the Indemnitor, subject to reimbursement for reasonable expenses incurred by the Claimant as the result of a request by
the Indemnitor. The Claimant shall have the right to participate in the defense of the claim at its own expense. If the Indemnitor does not assume control of the defense of any third party claim,
Claimant may, but shall have no obligation to, defend or settle such claim or litigation in such a manner as it deems appropriate, and in such event Indemnitor shall be bound by the results obtained
by the Claimant with respect to the claim (by default or otherwise) and shall promptly reimburse Claimant for the amount of all expenses (including the amount of any judgment rendered), legal or
otherwise, incurred in connection with such claim or litigation. The Indemnitor shall be subrogated to all rights of the Claimant against any third party with respect to any claim for which indemnity
was paid. 




        9.4  Limitations. Neither party shall be required to indemnify the other party under this
Article 9 unless (i) written notice of a claim under this Article 9 was received by the party within the pertinent survival period specified in  Section 9.5; and (ii) the
aggregate amount of claims against the party to which the other party (as a Claimant) is entitled to be
indemnified under this Agreement exceeds $25,000, after which the Claimant shall be entitled to recover, and the Indemnitor shall be obligated for, all additional losses, costs, liabilities, damages
and expenses for Claimant. In calculating the amount of losses to the Buyer or the Seller under Section 9.1 and Section 9.2,
(a) such losses shall be reduced by any recovery received from any third party (including insurance proceeds) as a result of the facts or circumstances giving rise to the losses, and
(b) no amount shall be included in such losses except for the party's actual out-of-pocket costs and expenses. 


        9.5  Survival of Representations, Warranties and Covenants. The representations, warranties,
covenants, indemnities and other agreements contained in this Agreement or in any certificate, document or instrument delivered pursuant to this Agreement are and will be deemed and construed to be
continuing representations, warranties, covenants, indemnities and agreements and shall survive the Closing for a period of 18 months (the "Survival Period"). No claim may be brought under this
Agreement unless written notice describing in reasonable detail the nature and basis of such claim is given on or prior to the last day of the Survival Period. In the event such notice is given, the
right to indemnification with respect thereto shall survive the Survival Period until such claim is finally resolved and any obligations thereto are fully satisfied. Any investigation by or on behalf
of any party hereto shall not constitute a waiver as to enforcement of any representation, warranty, covenant or agreement contained herein. 









 
 

ARTICLE 10
  TERMINATION RIGHTS    
  


        10.1 Termination. 



        (a)  In
addition to other available remedies, this Agreement may be terminated by either Buyer or Seller, if the party seeking to terminate is not in material default or
breach of this Agreement, upon written notice to the other if: 



        (i)    the
other party is in material breach of this Agreement and such breach has been neither cured within thirty (30) days after written notice of such breach nor
waived by the party giving such termination notice; 


        (ii)  a
court of competent jurisdiction or governmental, regulatory or administrative agency or commission shall have issued an order, decree or ruling or taken any other
action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and
nonappealable; or 


        (iii)  the
Closing has not occurred by a date that is one (1) year from the date the FCC Application is accepted by the FCC for filing (the "Upset Date"); 




        (b)  This
Agreement may be terminated by mutual written consent of Buyer and Seller. 


        (c)  If
either party believes the other to be in breach or default of this Agreement, the non-defaulting party shall, prior to exercising its right to terminate
under Section 10.1(a)(i), provide the defaulting party with notice specifying in reasonable detail the nature of such breach or default. Except
for a failure to pay the Purchase Price, the defaulting party shall have thirty (30) days from receipt of such notice to cure such default; provided that, if the breach or default is due to no
fault of the defaulting party and is not capable of cure within such thirty (30) day period, the cure period shall be extended as long as the defaulting party is diligently and in good faith
attempting to effect a cure. Nothing in this Section 10.1(c) shall be interpreted to extend the Upset Date. 




        10.2 Effect of Termination. The following sections shall survive the termination of this Agreement
pursuant to Section 10.1(a): 6.4 (Confidentiality),  11.1 (Default), 11.3 (Limitations on Damages), 12.3
(Entire Agreement; Schedules; Amendment; Waiver), 12.4 (Headings), 12.5 (Computation of Time),  12.6
(Governing Law; Waiver of Jury Trial), 12.7 (Attorneys' Fees),  12.9 (Notices), 12.10 (Counterparts) and
13.1
(Definitions). 


 
 

ARTICLE 11
  REMEDIES UPON DEFAULT    
  



        11.1 Remedies Generally. The parties acknowledge that the Station Assets and the transactions
contemplated hereby are unique, that a failure by Seller or Buyer to complete such transactions will cause irreparable injury to the other, and that actual damages for any such failure may be
difficult to ascertain and may be inadequate. Consequently, Seller and Buyer agree that each shall be entitled, in the event of a default by the other, to specific performance of any of the provisions
of this Agreement in addition to any other legal or equitable remedies to which the non-defaulting party may otherwise be entitled. 



        11.2 Limitations on Damages. Notwithstanding the foregoing, neither party shall be liable to the
other for special, consequential, punitive or exemplary damages, and in no event shall Seller's total liability to Buyer under this Agreement (including, for example, Seller's liability to Buyer
pursuant to Section 9.1 (Seller's Indemnities) and Buyer's liability to Seller pursuant to
Section 9.2 (Buyer's Indemnifies)) exceed the amount of the Purchase Price if after Closing, or the Deposit Amount, if before Closing. 







 
 

ARTICLE 12
  OTHER PROVISIONS    
  


        12.1 Transfer Taxes and Expenses. All recordation, transfer, and documentary fees (but not including
FCC fees or sales taxes, if any) imposed on this transaction shall be paid one-half by Buyer and one-half by Seller. Sales taxes, if any, imposed in connection with the
transactions contemplated by this Agreement shall be paid one-half by Buyer and one-half by Seller. Seller shall pay the premium for the title insurance referred to in  Section 7.1(g). Except as
otherwise provided in this Agreement, each party shall be solely responsible for and shall pay all other costs and
expenses (including attorney and accounting fees) incurred by it in connection with the negotiation, preparation and performance of and compliance with the terms of this Agreement. 


        12.2 Benefit and Assignment. This Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns. Neither Buyer nor Seller may assign its rights under this Agreement without the prior written consent of the other; provided, however,
that Buyer may assign this Agreement to one or more of its wholly-owned subsidiaries so long as (i) such assignment does not result in any delay of the Closing and (ii) Hispanic
Broadcasting Corporation continues to remain liable hereunder for the obligations of the assignee(s). 


        12.3 Entire Agreement; Schedules; Amendment; Waiver. This Agreement and the exhibits and schedules
hereto and thereto, embody the entire agreement and understanding of the parties hereto and supersede any and all prior agreements, arrangements and understandings relating to the matters provided for
herein. Any matter that is disclosed in a schedule hereto shall be deemed to have been included in other pertinent schedules, notwithstanding the omission of an appropriate cross-reference. No
amendment, waiver of compliance with any provision or condition hereof or consent pursuant to this Agreement shall be effective unless evidenced by an instrument in writing signed by the party against
whom enforcement of any waiver, amendment or consent is sought. No failure or delay on the part of Buyer or Seller in exercising any right or power under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. 


        12.4 Headings. The headings set forth in this Agreement are for convenience only and shall not
control or affect the meaning or construction of the provisions of this Agreement. 


        12.5 Computation of Time. If after making computations of time provided for in this Agreement, a time
for action or notice falls on Saturday, Sunday or a federal holiday, then such time shall be extended to the next business day. 



        12.6 Governing Law;. The construction and performance of this Agreement shall be governed by the law
of the State of New Mexico without regard to its principles of conflicts of law. 


        12.7 Attorneys' Fees. In the event of any dispute between the parties to this Agreement, Seller or
Buyer, as the case may be, shall reimburse the prevailing party for its reasonable attorneys' fees and other costs incurred in enforcing its rights or exercising its remedies under this Agreement.
Such right of reimbursement shall be in addition to any other right or remedy that the prevailing party may have under this Agreement. 



        12.8 Severability. If any term or provision of this Agreement or the application thereof to any
person or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than
those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 


        12.9 Arbitration. 



        (a)  Arbitration Disclosures. 



        (i)    ARBITRATION
IS FINAL AND BINDING ON THE PARTIES AND SUBJECT TO ONLY VERY LIMITED REVIEW BY A COURT. 









        (ii)  IN
ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL. 


        (iii)  DISCOVERY
IN ARIBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT. 


        (iv)  ARBITRATORS
ARE NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING IN THEIR AWARDS. THE RIGHT TO APPEAL OR TO SEEK MODIFICATION OF ARBITRATORS' RULINGS IS VERY
LIMITED. 


        (v)  IF
YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR ATTORNEY OR THE AMERICAN ARBITRATION ASSOCIATION. 




        (b)  Arbitration Provisions. Any dispute or controversy between the parties arising under or in connection with this Agreement
and by execution and delivery of this Agreement shall be resolved under the Commercial Arbitration Rules of the American Arbitration Association (the "Administrator"). In this regard: 



        (i)    Any
claim or controversy ("Dispute") between the parties and their assigns, including, but not limited to, Disputes arising out of or relating to this Agreement, this  Section 12.9 ("arbitration
clause"), or any related agreements or instruments relating hereto or delivered in connection herewith ("Related
Documents"), shall, at the request of either party, be resolved by binding arbitration in accordance with
the applicable arbitration rules of the Administrator. The provisions of this arbitration clause shall survive any termination, amendment or expiration of this Agreement or the Related Documents. If
any provision of this arbitration clause should be determined to be unenforceable, all other provisions of this arbitration clause shall remain in full force and effect. 


        (ii)  The
arbitration proceedings shall be conducted in Albuquerque, New Mexico at a place to be determined by the Administrator. The Administrator and the arbitrator(s)
shall have the authority to the extent practicable to take any action to require the arbitration proceeding to be completed and the arbitrator(s)' award issued within one hundred twenty
(120) days of the filing of the Dispute with the Administrator. 


        (iii)  The
arbitrator(s) shall be selected in accordance with the rules of the Administrator from panels maintained by the Administrator. A single arbitrator shall have
expertise in the subject matter of the Dispute. Where three arbitrators conduct an arbitration proceeding, the Dispute shall be decided by a majority vote of the three arbitrators, at least one of
whom must have expertise in the subject matter of the Dispute and at least one of whom must be a practicing attorney. The arbitrator(s) shall award to the prevailing party recovery of all costs and
fees (including attorneys' fees and costs, arbitration administration fees and costs, and arbitrator(s)' fees). The arbitrator(s), either during the pendency of the arbitration proceeding or as part
of the arbitration award, also may grant provisional or ancillary remedies, including but not limited to an award of injunctive relief, foreclosure, sequestration, attachment, replevin, garnishment,
or the appointment of a receiver. 


        (iv)  Judgment
upon an arbitration award may be entered in any court having jurisdiction, and the amount of the arbitration award shall be binding. The computation of the
total amount of an arbitration award shall include amounts awarded for attorneys' fees and costs, arbitration administration fees and costs, and arbitrator(s)' fees. 



        (v)  Either
party may initiate arbitration with the Administrator; however, if either party initiates litigation and another party disputes any allegation in that litigation,
the disputing party, upon the request of the initiating party, must file a demand for arbitration with the Administrator and pay the Administrator's filing fee. The parties may serve by mail a
notice of an initial motion for an order of arbitration. 





Notwithstanding
the applicability of any other law to this Agreement, the arbitration clause or Related Documents between the parties, the Federal Arbitration Act, 9 U.S.C. Section 1,  et seq., shall apply to the
construction and interpretation of this arbitration clause. 






        12.10  Notices. Any notice, demand or request required or permitted to be given under
this Agreement shall be in writing and shall be addressed to the following addresses or to such other address as any part may request: 



	

If to Seller:	
 	

Simmons-New Mexico, LLC

515 South 700 East, #1C

Salt Lake City, Utah 84102

Attention: David E. Simmons

Telephone: 801-323-9315

Telecopier 801-323-9316

E-mail: dsimmons@simmonsmedia.com
	

With a copy to:	
 	

Dorothy C. Pleshe

Callister Nebeker & McCullough

Gateway Tower East #900

East South Temple Street

Salt Lake City, UT 84133

Telephone: 801-530-7367

Telecopier: 801-364-9127

E-ail: dcpleshe@cnmlaw.com
	

If to Buyer:	
 	

Hispanic Broadcasting Corporation

3102 Oak Lawn Avenue, Suite 215

Dallas, Texas 75219

Attn: Jeffrey T. Hinson, Senior Vice President

Fax: 214-525-7750

E-mail: jhinson@hispanicbroadcasting.com
	
With a copy to:	
 	

Hallett & Perrin

2001 Bryan St., Suite 3900

Dallas, Texas 75201

Attn: Bruce H. Hallett

Fax: 214-922-4170

E-mail: bhallett@hallettperrin.com





Any
such notice, demand or request shall be deemed to have been duly delivered and received (a) on the date of personal delivery, (b) on the date of transmission if sent by facsimile,
(c) on the date of receipt if mailed by registered or certified mail, postage prepaid and return receipt requested, or (d) on the date of a signed receipt if sent by an overnight
delivery service. 


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


 
 

ARTICLE 13
  DEFINITIONS    
  


        13.1 Defined Terms. Unless otherwise stated in this Agreement, the following terms when used herein
shall have the meanings assigned to them below (such meanings to be equally applicable to both the singular and plural forms of the terms defined). 


        "Agreement"
shall mean this Asset Purchase Agreement. 


        "Assumed
Contracts" shall have the meaning set forth in Section 1.2(c). 


        "Buyer"
shall have the meaning set forth in the preamble to this Agreement. 


        "Claimant"
shall have the meaning set forth in Section 9.3. 


        "Closing"
shall have the meaning set forth in Section 1.1. 








        "Closing
Date" shall mean the date on which the Closing is completed. 


        "Code"
shall mean the Internal Revenue Code of 1986, as amended, and the regulations thereunder, or any subsequent legislative enactment thereof, as in effect from time to time. 


        "FCC"
shall have the meaning set forth in the preamble to this Agreement. 


        "FCC
Application" shall mean the application or applications that Seller and Buyer must file with the FCC requesting its consent to the assignment of the FCC Licenses from Seller to
Buyer. 


        "FCC
Consent" shall mean the action by the FCC granting the FCC Application. 


        "FCC
Licenses" shall have the meaning set forth in Section 1.2(a).



        "Final
Order" shall mean action by the FCC with respect to the FCC Application (i) which has not been vacated, reversed, stayed, set aside, annulled or suspended, (ii) with
respect to which no timely appeal, request for stay or petition for rehearing, reconsideration or review by any party or by the FCC on its own motion is pending, and (iii) as to which the time
for filing any such appeal, request, petition or similar document or for the reconsideration or review by the FCC on its own motion under the Communications Act of 1934, as amended, has expired. 


        "Indemnitor"
shall have the meaning set forth in Section 9.3. 



        "Liens"
shall mean mortgages, deeds of trust, liens, security interests, pledges, collateral assignments, condition sales agreements, leases, encumbrances, claims or other defects of
title, but shall not include (i) liens for current taxes not yet due and payable, (ii) other liens imposed by law (such as materialman's mechanic's, carrier's, worker's and repairman's
liens) arising in the ordinary course of business (provided that such liens do not interfere in any material respect with the use of the Station Assets as currently used and that Seller remains liable
for paying such liens), (iii) valid leases or subleases to third parties with respect to property not used in the operation of the Stations, and which are listed on  Schedule 1.2(h); and
(iv) in respect of the Real Property, defects in title or other matters that do not materially adversely affect the
continued use of the Real Property as currently used by Seller. 


        "Material
Contracts" shall have the meaning set forth in Section 1.2(c). 


        "Other
Contracts" shall have the meaning set forth in Section 1.2(c). 


        "Personal
Property" shall have the meaning set forth in Section 1.2(b). 


        "Purchase
Price" shall have the meaning set forth in Section 2.1. 


        "Real
Property" shall have the meaning set forth in Section 1.2(i). 


        "Seller"
shall have the meaning set forth in the preamble to this Agreement. 


        "Station"
shall have the meaning set forth in the preamble to this Agreement. 


        "Station
Assets" shall mean the assets to be transferred to Buyer hereunder, as more fully specified in Section 1.2. 



        "Station
Licenses" shall have the meaning set forth in Section 1.2(a).


        "Survival
Period" shall have the meaning set forth in Section 9.5. 


        "Upset
Date" shall have the meaning set forth in Section 10.1(a)(iii). 


        13.2 Miscellaneous Terms. The term "or" is disjunctive; the term "and" is conjunctive. The term
"shall" is mandatory; the term "may" is permissive. Masculine terms apply to females as well as males; feminine terms apply to males as well as females. The term "includes" or "including" is by way of
example and not limitation. 


        [Remainder
of page intentionally left blank] 






[signature
page of Simmons New Mexico/Hispanic Broadcasting Asset Purchase Agreement] 


        IN
WITNESS WHEREOF, the parties hereto have caused this Asset Purchase Agreement to be duly executed as of the date first written above. 



	

        SELLER	
 	

Simmons-New Mexico, LLC
	

 	
 	

By:	
 	

/s/  D. Simmons      
 David E. Simmons, Chairman and Manager
	

 	
 	

Simmons-New Mexico, LS, LLC
	

 	
 	

By:	
 	

/s/  D. Simmons      
 David E. Simmons, Manager
	

        BUYER	
 	

Hispanic Broadcasting Corporation
	

 	
 	

By:	
 	

/s/  Jeffrey T. Hinson      
 Jeffrey T. Hinson, Senior Vice President











QuickLinks



Exhibit 10.1


ASSET PURCHASE AGREEMENT

ARTICLE 1 ASSETS TO BE CONVEYED

ARTICLE 2 PURCHASE PRICE

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER


ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER

ARTICLE 5 GOVERNMENTAL CONSENTS

ARTICLE 6 COVENANTS

ARTICLE 7 CONDITIONS PRECEDENT

ARTICLE 8 DOCUMENTS TO BE DELIVERED AT THE CLOSING

ARTICLE 9 INDEMNIFICATION, SURVIVAL


ARTICLE 10 TERMINATION RIGHTS

ARTICLE 11 REMEDIES UPON DEFAULT

ARTICLE 12 OTHER PROVISIONS

ARTICLE 13 DEFINITIONS