Document:

Exhibit 10.3
                               SECURITY AGREEMENT

                  This SECURITY AGREEMENT ("Agreement"), dated as of August 31,
2000 is made between each entity set forth on the signature pages hereto as a
grantor (each such entity and each entity which hereafter executes and delivers
a Borrower Joinder in substantially the form of Exhibit E to the Credit
Agreement or a Subsidiary Joinder in substantially the form of Attachment 1 to
the Guaranty (as defined below) to be referred to herein as a "Grantor", and
collectively as, the "Grantors") and BARCLAYS BANK PLC ("Bank").

                                    RECITALS

         A. Bank is entering into a Credit Agreement, dated as of August 31,
2000 (such agreement, as it may hereafter be amended or modified, the "Credit
Agreement" with Chadmoore Wireless Group, Inc. ("Chadmoore") and a Guaranty of
even date herewith with the subsidiaries of Chadmoore (collectively, the
"Subsidiaries").

         B. It is a condition precedent to the extension of credit by Bank under
the Credit Agreement that each Grantor shall have executed and delivered this
Agreement and shall have granted a security interest in all of its assets to
Bank in accordance herewith.

         C. Terms defined in the Credit Agreement and not otherwise defined
herein have the same respective meanings when used herein.

                                    AGREEMENT

                  NOW, THEREFORE, in order to induce Bank to enter into the
Credit Agreement and for other good and valuable consideration, the receipt and
adequacy of which hereby is acknowledged, each Grantor hereby represents,
warrants, covenants, agrees and grants as follows:

         1. Definitions. Unless the context otherwise requires, terms defined in
the Uniform Commercial Code of the State of New York (the "Uniform Commercial
Code") and not otherwise defined in this Agreement or in the Credit Agreement
shall have the meanings defined for those terms in the Uniform Commercial Code.
In addition, the following terms shall have the meanings respectively set forth
after each:

                  "Certificates" means all certificates, instruments and other
documents now or hereafter representing or evidencing any Pledged Securities or
Pledged Limited Liability Company Interests.

                  "Closing Date" shall mean the date of this Agreement.

                  "Collateral" means and includes all present and future right,
title, interest, claims and demands of each Grantor in or to any personal
property or assets whatsoever, whether now

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owned or existing or hereafter arising or acquired and wheresoever located, and
all hereafter arising or acquired and wheresoever located, and all rights and
powers of such Grantor to transfer any interest in or to any personal property
or assets whatsoever, including without limitation, any and all of the following
personal property:

         (a) All present and future acounts, accounts receivable, agreements,
guaranties, contracts (including without limitation management agreements,
leases, contract rights and rights to payment (collectively, the "Accounts"),
together with all instruments, documents, chattel paper, security agreements,
guaranties, undertakings, surety bonds, insurance policies, notes and drafts,
and all forms of obligations owing to such Grantor or to which such Grantor may
have an interest, however created or arising;

         (b) All present and future general intangibles, including without
limitation, (i) each FCC License and each Other Authorization described on
Schedules 1.01(a)(1), 1.01(a)(2) and 1.01(a)(3) of the Nextel Agreement and
including without limitation, all of such Grantor's rights under or relating to
any FCC License or any Other Authorization and the proceeds of any FCC License
or Other Authorization; provided, however, that the Collateral does not include
at any time any FCC License to the extent, but only to the extent, that such
Grantor is prohibited at that time from granting a security interest therein
pursuant to the Communications Act and the FCC Rules, but includes, to the
maximum extent permitted by law, all of such Grantor's proprietary rights
vis-a-vis third parties under or relating to any FCC License and the rights to
receive all proceeds derived from or in connection with the sale, assignment or
transfer of such FCC License, (ii) all tax refunds of every kind and nature to
which such Grantor now or hereafter may become entitled, however arising, (iii)
all other refunds, (iv) all commitments to extend financing to such Grantor, (v)
all deposits, (vi) all goodwill, (vii) all choses in action, (viii) all
insurance proceeds, and (ix) all trade secrets, computer programs, software,
customer lists, trademarks, trade names, patents, licenses, copyrights,
tecnology, processes and proprietary information, including without limitation,
the Copyrights, the Patents and the Marks and the goodwill of such Grantor's
business connected with and symbolized by the Marks;

         (c) All present and future demand, time, savings, passbook, deposit and
like accounts (general or special) (collectively, the "Deposit Accounts") in
which such Grantor has any interest which is maintained with any bank, savings
and loan association, credit union or like organization and all money, cash and
cash equivalents of such Grantor, whether or not deposited in any Deposit
Account;

         (d) All present and future books and records, including without
limitation, books of account and ledgers of every kind and nature, all
electronically recorded data relating to such Grantor, all receptacles and
containers for such records, and all files and correspondence;

         (e) All present and future goods, including without limitation, all
equipment, machinery, audio and/or video recording equipment, transmitting
towers, transmitters, broadcasting equipment, videotapes, audio tapes, DAT tapes
and other recorded media, tools, molds, dies, furniture, furnishings, fixtures,
trade fixtures and all other goods used in connection with or in

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the conduct of such Grantor's business, including without limitation, all goods
as defined in Section 9101(2) of the Uniform Commercial Code (collectively, the
"Equipment");

         (f) All present and future inventory and merchandise, including without
limitation, all present and future goods held for sale or lease or to be
furnished under a contract of service, all recorded media, all raw materials,
work in process and finished goods, all packing materials, supplies and
containers relating to or used in connection with any of the foregoing, and all
bills of lading, warehouse receipts and documents of title relating to any of
the foregoing (collectively, the "Inventory");

         (g) All present and future stocks, bonds, debentures, certificated and
uncertificated securities, security entitlements, subscription rights, options,
warrants, puts, calls, certificates, security accounts, commodity accounts,
commodity contracts, partnership interests, limited liability compnay interests,
joint venture interests and investment and/or brokerage accounts, and all other
investment properties, including without limitation, the Certificates, the
Pledged Securities, the Pledged Partnership Interests, the Pledged Limited
Liability Company Interests and all rights, preferences, privileges, dividends,
distributions (in cash or in kind), redemption payments or liquidation payments
with respect thereto;

         (h) All present and future accessions, appurtenances, components,
repairs, repair parts, spare parts, replacements, substitutions, additions,
issue and/or improvements to or of or with respect to any of the foregoing;

         (i) All other tangible and intangible personal property of such
Grantor;

         (j) All rights, remedies, powers and/or privileges of such Grantor with
respect to any of the foregoing; and

         () Any and all proceeds and products of the foregoing, including
without limitation, all money, accounts, general intangibles, deposit accounts,
documents, instruments, chattel paper, goods, insurance proceeds and any other
tangible or intangible property received upon the sale or disposition of any of
the foregoing.

                  "Communications Act" has the meaning given to that term in the
Credit Agreement.

                  "Copyright" means all:

(a) Copyrights, whether or not published or registered under the Copyright Act
of 1976, 17 U.S.C. Section 101 et seq., as the same shall be amended from time
to time and any predecessor or successor statute thereto (the "Copyright Act"),
and applications for registration of copyrights, and all works of authorship and
other intellectual property rights therein, including without limitation,
copyrights for computer programs, source code and object code databases and
related materials and documentation, and (i) all renewals, revisions, derivative
works,

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enhancements, modifications, updates, new releases and other revisions thereof,
(ii) all income, royalties, damages and payments now and hereafter due and/or
payable with respect thereto, including without limitation, payments under all
licenses entered into in connection therewith and damages and payments for past
or future infringements thereof, (iii) the right to sue for past, present and
future infringemens thereof and (iv) all of such Grantor's rights corresponding
thereto throughout the world;

         (b) Rights under or interests in any copyright license agreements with
any other party, whether Grantors are a licensee or licensor under any such
license agreement and the right to use the foregoing in connnection with the
enforcement of the Bank's rights under the Operative Documents; and

         (c) Copyrightable materials now or hereafter owned by such Grantor,
including without limitation, all tangible property embodying the copyright
described in clause (a) hereof or such copyrightable materials, and all tangible
property covered by the licenses described in clause (b) hereof.

                  "Disclosure Schedule"has the meaning given to that term in the
Credit Agreement.

                  "FCC" has the meaning given to that term in the Credit
Agreement.

                  "FCC License" has the meaning given to that term in the Credit
Agreement.

                  "FCC Rules" has the meaning given to that term in the Credit
Agreement.

                  "Governmental Authority" has the meaning given to that term in
the Credit Agreement.

                  "Guaranty" has the meaning given to that term in the Credit
Agreement.

                  "Issuer Acknowledgement" has the meaning given to that term in
Section 3(b) of this Agreement.

                  "Liens" has the meaning given to that term in the Credit
Agreement.

                  "Limited Liability Company Interests" means the entire limited
liability company interest at any time owned by the Grantors in any Pledged
Entity.

                  "Loans" has the meaning given to that term in the Credit
Agreement.

                  "Marks" means all (a) trademarks, trademark registrations,
interest under trademark license agreements, trade names, trademark
applications, service marks, business names, trade styles, designs, logos and
other source or business identifiers for which registrations have been issued or
applied for in the United States Patent and Trademark Office or in any other
office or with any other official anywhere in the world or which are used in the
United States or

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any state, territory or possession thereof, or in any other place, nation or
jurisdicion anywhere in the world, (b) licenses pertaining to any such mark
whether such Grantor is licensor or licensee, (c) all income, royalties, damages
and payments for past, present or future infringements thereof, (d) rights to
sue for past, present and future infringements thereof, (e) rights corresponding
thereto throughout the world, (f) all product specification documents and
production and quality control manuals used in the manufacture of products sold
under or in connection with such marks, (g) all documents that reveal the name
and address of all sources of supply of, and all terms of purchase and delivery
for, all materials and components used in the production of products sold under
or in connection with such marks, (h) all documents constituting or concerning
the then current or proposed advertising and promotion by such Grantor, their
subsidiaries or licensees of products sold under or in connection with such
marks, including without limitation, all documents that reveal the media used or
to be used and the cost for all such advertising conducted within the described
period or planned for such products and (i) renewals and proceeds of any of the
foregoing.

                  "Material Adverse Effect" has the meaning given to that term
in the Credit Agreement.

                  "Obligations" has the meaning given to that term in the Credit
Agreement.

                  "Operative Documents" has the meaning given to that term in
the Credit Agreement.

                  "Other Authorization" has the meaning given to that term in
the Credit Agreement.

                  "Patents" means all (a) letters patent, design patents,
utility patents, inventions and trade secrets, all patents and patent
applications in the United States Patent and Trademark Office, and interests
under patent license agreements, including without limitation, the inventions
and improvements described and claimed therein, (b) licenses pertaining to any
patent whether such Grantor is licensor or licensee, (c) income, royalties,
damges and payments now and hereafter due and /or payable under and with respect
thereto, including without limitation, damages and payments for past, present or
future infringements, (d) rights to sue for past, present and future
infringements thereof, (e) rights corresponding thereto throughout the world in
all jurisdictions in which such patents have been issud or applied for and (f)
the reissues, divisions, continuations, renewals, extensions and
continuations-in-part of any of the foregoing.

                  "Permitted Liens" has the meaning given to that term in the
Credit Agreement.

                  "Person" has the meaning given to that term in the Credit
Agreement.

                  "Partnership Interests" means the entire partnership interest
at any time owned by the Grantors in any Pledged Partnership Entity.

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                  "Pledge Notice" shall have the meaning ascribed to it in
Section 3(b) of this Agreement.

                  "Pledged Collateral" means the Certificates, the Pledged
Securities, the Pledged Partnership Interests and the Pledged Limited Liability
Company Interests.

                  "Pledged Entity" means each limited liability company set
forth in Schedule 1 attached hereto, together with any other limited liability
company in which any Grantor may have an interest at any time.

                  "Pledged Limited Liability Company Interests" means all
limited liability company interests held by each Grantor, including, but not
limited to those limited liability company interests set forth in Schedule 1
attached hereto, as such Schedule may be supplemented from time to time in
accordance with the terms of this Agreement and all capital, limited liability
company assets, dividends, cash, instruments and other properties from time to
time received, to be received or otherwise distributed in respect of or in
exchange for any or all of such interests and all certificates and instruments
representing or evidencing such other property received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof.

                  "Pledged Partnership Entity" means each partnership interest
set forth in Schedule 1 attached hereto, together with any other partnership
interest in which any Grantor may have an interest at any time.

                  "Pledged Partnership Interests" means all interests in any
partnership or joint venture held by each Grantor, including, but not limited to
those partnership interests set forth in Schedule 1 attached hereto, as such
Schedule may be supplemented from time to time in accordance with the terms of
this Agreement, and all dividends, cash, instruments and other properties from
time to time received, to be received or otherwise distributed in respect of or
in exchange for any or all of such interests.

                  "Pledged Securities" means all shares of capital stock of each
issuer in which each Grantor has an interest, including, but not limited to
those shares of capital stock set forth in Schedule 1 attached hereto, as such
Schedule may be supplemented from time to time in accordance with the terms of
this Agreement, and all dividends, cash, instruments and other properties from
time to time received, to be received or otherwise distributed in respect of or
in exchange for any or all of such shares.

                  "Term" has the meaning given to that term in the Credit
Agreement.

         2. Creation of Security Interest. Each Grantor, in order to secure the
Obligations, does hereby grant and pledge to Bank to the extent permitted by law
a security interest in and to, all right, title and interest of such Grantor in
and to all presently existing and hereafter acquired Collateral. The security
interest and pledge created by this Section 2 shall continue in effect so long
as any Obligation remains outstanding or Bank has any obligation to make Loans
under the

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Credit Agreement. Notwithstanding the foregoing provisions of this Section 2,
such grant of a security interest shall not extend to, and the term "Collateral"
shall not include, any general intangibles of the Grantors to the extent that
(but only to the extent that) (i) such general intangibles are not assignable or
capable of being encumbered as a matter of law or under the terms of the license
or other agreement applicable thereto (but solely to the extent that any such
restriction shall be enforceable under applicable law), without the consent of
the licensor thereof or other applicable party thereto and (ii) such consent has
not been obtained; provided, however, that the foregoing grant of a security
interest shall extend to, and the term "Collateral" shall include, (A) any
general intangible which is in the nature of an account receivable or a right to
the payment of money or a proceed of, or otherwise related to the enforcement or
collection of, any account receivable or right to the payment of money, or goods
which are the subject of any account receivable or right to the payment of
money, (B) any and all proceeds of any general intangibles which are otherwise
excluded to the extent that the assignment or encumbrance of such proceeds is
not so restricted, and (C) upon obtaining the consent of any such licensor or
other applicable party's consent with respect to any such otherwise excluded
general intangibles, such general intangibles as well as any and all proceeds
thereof that might have theretofor have been excluded from such grant of a
security interest and the term "Collateral".

         3. Delivery of Pledged Collateral.

         (a) With respect to each Certificate on (i) the Closing Date and (ii)
the day on which such Certificate shall be received or acquired by a Grantor
(with respect to any Certificate received or acquired after the Closing Date
that is not delivered to Senior Lender), and (iii) the day on which any such
Certificate is delivered to Senior Lender, Grantor shall deliver to Bank a
letter, countersigned by Senior Lender, in the form set forth in Exhibit A-1A
attached hereto (the "Pledge Letter") or, if Senior Lender does not have
possession of such Certificates, Grantor shall deliver to Bank the Certificates,
accompanied by instruments of transfer in blank, in form and substance
reasonably satisfactory to Bank.

         (b) With respect to each uncertificated Limited Liability Company
Interest and each uncertificated Partnership Interest, on (i) the Closing Date
(with respect to such Limited Liability Company Interests and such Partnership
Interests existing on such date) and (ii) the day on which any such Limited
Liability Company Interest and any such Partnership Interest shall be acquired
by a Grantor (with respect to such Limited Liability Company Interests and such
Partnership Interests acquired after the Closing Date), a notice in the form set
forth in Exhibit A-1 attached hereto (the "Pledge Notice") shall be
appropriately completed and delivered to each Pledged Entity and each Pledged
Partnership Entity, notifying each Pledged Entity and each Pledged Partnership
Entity of the existence of this Agreement, a certified copy of this Agreement
shall be delivered by the Grantor to the relevant Pledged Entity and relevant
Pledged Partnership Entity, and such Grantor shall have received and delivered
to Bank a copy of such Pledge Notice, along with an acknowledgment in the form
set forth in Exhibit A-2 attached hereto (the "Issuer Acknowledgment"), duly
executed by the relevant Pledged Entity.

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         (c) Subject to receipt of any and all necessary prior approvals
required under the Communications Act and the FCC Rules, Bank shall have the
right, upon the occurrence and during the continuance of an Event of Default,
without notice to any of the Grantors, in connection with a commercially
reasonable foreclosure sale, to transfer to, or to direct the applicable Grantor
or any nominee of such Grantor to register or cause to be registered in the name
of, Bank or any of its nominees any or all of the Pledged Securities, Pledged
Partnership Interests or Pledged Limited Liability Company Interests. In
addition, Bank shall have the right at any time to exchange certificates or
instruments representing or evidencing Pledged Securities for certificates or
instruments of smaller or larger denominations.

         4. Further Assurances.

         (a) At any time and from time to time at the reasonable written request
of Bank, each Grantor shall execute and deliver to Bank, at such Grantor's
expense, all such financing statements and other instruments, certificates and
documents (including notices to financial institutions holding deposit accounts
of any Grantor as to the security interest granted hereby) in form and substance
reasonably satisfactory to Bank, and perform all such other acts as shall be
necessary or reasonably desirable to fully perfect or protect or maintain, when
filed, recorded, delivered or performed, Bank's security interests granted
pursuant to this Agreement or to enable Bank to exercise and enforce its rights
and remedies hereunder with respect to any Collateral. Without limiting the
generality of the foregoing, each Grantor shall: (i) at the request of the Bank,
mark conspicuously each document included in the Inventory and each other
contract relating to the Accounts, and all chattel paper, instruments and other
documents and each of its records pertaining to the Collateral with a legend, in
form and substance satisfactory to Bank, indicating that such document,
contract, chattel paper, instrument or Collateral is subject to the security
interest granted hereby, (ii) at the request of Bank, if any Account or contract
or other writing relating thereto shall be evidenced by a promissory note or
other instrument, deliver and pledge to the Bank, such note or other instrument
duly endorsed and accompanied by duly executed undated instruments of transfer
or assignment, all in form and substance reasonably satisfactory to the Bank;
(iii) execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be necessary or
desirable, or as Bank may reasonably request, in order to perfect and preserve,
with the required priority, the security interests granted, or purported to be
granted hereby, (iv) upon any Grantor's registration or application of any
copyright under the Copyright Act, execute and deliver immediately to Bank for
recordation and filing in the United States Copyright Office a Grant of Security
Interest, in the form of Exhibit B attached hereto, (v) upon any Grantor's
registration or application of any Patent or Mark, execute and deliver
immediately to Bank for recordation and filing in the United States Patent and
Trademark Office a Grant of Security Interest, in the form of Exhibit B attached
hereto, and (vi) with respect to any license or agreement in which any Grantor
now has or hereafter acquires an interest which by its terms prohibits
assignment, such Grantor will use its best efforts to procure the consent of the
counterpart party thereto.

         (b) At any time and from time to time, Bank shall be entitled to file
and/or record any or all such financing statements, instruments and documents
held by it, and any or all such

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further financing statements, documents and instruments, relative to the
Collateral or any part thereof in each instance, and to take all such other
actions as Bank may reasonably deem appropriate to perfect and to maintain
perfected the security interests granted herein.

         (c) Each Grantor hereby authorizes Bank to file one or more financing
or continuation statements, and amendments thereto, relative to all or any part
of the Collateral without the signature of such Grantor where permitted by law.
A carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.

         (d) With respect to any Collateral consisting of securities,
instruments, partnership or joint venture interests, limited liability company
interests, or the like, each Grantor hereby consents and agrees that, upon the
occurrence and during the continuance of an Event of Default, subject to receipt
of any and all necessary prior approvals required under the Communications Act
and the FCC Rules, the issuers of, or obligors on, any such Collateral, or any
registrar or transfer agent or trustee for any such Collateral, shall be
entitled to accept the provisions of this Agreement as conclusive evidence of
the right of Bank to effect any transfer or exercise any right hereunder or with
respect to any such Collateral subject to the terms hereof, notwithstanding any
other notice or direction to the contrary heretofore or hereafter given by any
Grantor or any other Person to such issuers or such obligors or to any such
registrar or transfer agent or trustee.

         5. Voting Rights; Dividends; etc. Subject to receipt of any and all
necessary prior approvals required under the Communications Act and the FCC
Rules, so long as no Event of Default shall have occurred and be continuing:

         (a) Voting Rights. Each Grantor shall be entitled to exercise any and
all voting and other consensual rights pertaining to its Pledged Securities, its
Pledged Partnership Interests and its Pledged Limited Liability Company
Interests, or any part thereof, for any purpose not inconsistent with the terms
of this Agreement, the Credit Agreement or the other Operative Documents;
provided, however, that each Grantor shall not exercise, or shall refrain from
exercising, any such right if it would result in a Default.

         (b) Dividend and Distribution Rights. Subject to the terms of the
Credit Agreement, each Grantor shall be entitled to receive and to retain and
use any and all dividends or distributions paid in respect of its Pledged
Securities, its Pledged Partnership Interests or its Pledged Limited Liability
Company Interests; provided, however, that any and all:

             (i) non-cash dividends or distributions in the form of capital
stock, certificated limited liability company interests, instruments or other
property received, receivable or otherwise distributed in respect of, or in
exchange for, any Pledged Securities, Pledged Partnership Interests, Pledged
Limited Liability Company Interests,

             (ii) dividends and other distributions paid or payable in cash in
respect of any Pledged Securities, Pledged Partnership Interests or Pledged
Limited Liability Company

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Interests in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in-surplus, and

             (iii) cash paid, payable or otherwise distributed in redemption of,
or in exchange for, any Pledged Securities, Pledged Partnership Interests or
Pledged Limited Liability Company Interests,

         shall, except as otherwise provided for in the Credit Agreement or the
other Operative Documents, forthwith be delivered to Bank, in the case of (i)
above, to be held as Collateral and shall, if received by such Grantor, be
received in trust for the benefit of Bank, be segregated from the other property
of such Grantor and forthwith be delivered to Bank as Collateral in the same
form as so received (with any necessary endorsements), and in the case of (ii)
and (iii) above, to be applied to the Obligations to the extent permitted by the
Credit Agreement or otherwise to be held as Collateral.

         6. Rights as to Pledged Collateral During Event of Default. When an
Event of Default has occurred and is continuing, subject to receipt of any and
all necessary prior approvals required under the Communications Act and the FCC
Rules:

         (a) Voting, Dividend and Distribution Rights. At the option of Bank,
all rights of each Grantor to exercise the voting and other consensual rights
which it would otherwise be entitled to exercise pursuant to Section 5(a) above,
and to receive the dividends and distributions which it would otherwise be
authorized to receive and retain pursuant to Section 5(b) above, shall cease,
and all such rights shall thereupon become vested in Bank who shall thereupon
have the sole right to exercise such voting and other consensual rights and to
receive and to hold as Pledged Collateral such dividends and distributions
during the continuance of such Event of Default.

         (b) Dividends and Distributions Held in Trust. All dividends and other
distributions which are received by any Grantor contrary to the provisions of
Section 6(a) of this Agreement shall be received in trust for the benefit of
Bank, shall be segregated from other funds of such Grantor and forthwith shall
be paid over to Bank as Collateral in the same form as so received (with any
necessary endorsements).

         7. Irrevocable Proxy. Except for the proxy granted to Senior Lender,
each Grantor hereby revokes all previous proxies with regard to its Pledged
Securities, its Pledged Partnership Interests and its Pledged Limited Liability
Company Interests and, subject to receipt of any and all necessary prior
approvals required under the Communications Act and the FCC Rules, appoints Bank
as its respective proxyholder to (a) attend and vote at any and all meetings of
the shareholders of the corporation(s) which issued the Pledged Securities, and
any adjournments thereof, held on or after the date of the giving of this proxy
and prior to the termination of this proxy and to execute any and all written
consents of shareholders of such corporation(s) executed on or after the date of
the giving of this proxy and prior to the termination of this proxy, with the
same effect as if such Grantor had personally attended the meetings or had
personally

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<PAGE>

voted its shares or had personally signed the written consents, waivers or
ratification, and (b) to attend and vote at any and all meetings of the members
of the Pledged Entities or partners of the Pledged Partnership Entities (whether
or not such Pledged Limited Liability Company Interests or Pledged Partnership
Interests are transferred into the name of Bank), and any adjournments thereof,
held on or after the date of the giving of this proxy and to execute any and all
written consents, waivers and ratifications of the Pledged Entities or Pledged
Partnership Entities executed on or after the date of the giving of this proxy
and prior to the termination of this proxy with the same effect as if such
Grantor had personally attended the meetings or had personally voted on their
respective Limited Liability Company Interests or Partnership Interests or had
personally signed the consents, waivers or ratifications; provided, however,
that Bank as proxyholder shall have rights hereunder only upon the occurrence
and during the continuance of an Event of Default and subject to Section 13(j)
hereof. Each Grantor hereby authorizes Bank to substitute another Person (which
Person shall be a successor to the rights of Bank hereunder, a nominee appointed
by Bank to serve as proxyholder, or otherwise as approved by such Grantor in
writing, such approval not to be unreasonably withheld) as the proxyholder and,
upon the occurrence or during the continuance of any Event of Default, hereby
authorizes and directs the proxyholder to file this proxy and the substitution
instrument with the secretary of the appropriate corporation. This proxy
is-coupled with an interest and is irrevocable until such time as no part of any
commitment to make Loans pursuant to the Credit Agreement remains outstanding
and all Obligations have been indefeasibly paid in full.

         8. The Grantors' Representations and Warranties. Each Grantor
represents and warrants as follows:

         (a) (i) The locations listed on the Schedule 2 constitute all locations
at which Collateral owned by such Grantor is located; (ii) the chief executive
office of such Grantor, where such Grantor keeps its records concerning the
Collateral, is located at the address set forth for such Grantor on Schedule 3;
and (iii) such Grantor has exclusive possession and control of the Collateral
owned by such Grantor.

         (b) Such Grantor currently conducts business only under its own name
and the trade names listed on Schedule 4. Neither such Grantor nor any corporate
predecessor has, during the preceding five years, been known as or used any
other corporate or fictitious name, except the names disclosed on Schedule 4.

         (c) Such Grantor is the legal and beneficial owner of the Collateral
free and clear of all Liens except for Permitted Liens and restrictions imposed
by the FCC Rules. Such Grantor has the power, authority and legal right to grant
the security interests in the Collateral purported to be granted hereby, and to
execute, deliver and perform this Agreement. The pledge of the Collateral
pursuant to this Agreement creates a valid first priority security interest in
the Collateral (except for any Permitted Liens).

         (d) Except as set forth on Schedule 1, the Pledged Securities described
on Schedule 1 attached hereto constitute (i) all of the shares of capital stock
of any Person owned by such

                                      -11-
<PAGE>

Grantor and (ii) that percentage of the issued and outstanding shares of the
respective issuers thereof indicated on Schedule 1 attached hereto, and there is
no other class of shares issued and outstanding of the respective issuers
thereof except as set forth on Schedule 1 attached hereto. Except as set forth
in Schedule 1, the Pledged Partnership Interests described on Schedule 1
attached hereto constitute all of the partnerships or joint ventures in which
each Grantor has an interest, and such Grantor's percentage interest in each
such partnership or joint venture is as set forth on such Schedule 1 attached
hereto. Except as set forth in Schedule 1, the Pledged Limited Liability Company
Interests described on Schedule 1 attached hereto constitute all of the Limited
Liability Company Interests of each Grantor and such Grantor's percentage
interest in each such Pledged Entity is as set forth on Schedule 1 attached
hereto.

         (e) No authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority (other than such authorizations,
approvals and other actions as have already been taken and are in full force and
effect) is required (A) for the pledge of the Collateral or the grant of the
security interest in the Collateral by any of the Grantors hereby or for the
execution, delivery or, subject to approvals described in Section 13(j)(ii)
hereof, performance of this Agreement by any of the Grantors, or (B) for the
exercise by Bank of the voting rights in the Pledged Securities, the Pledged
Partnership Interest or the Pledged Limited Liability Company Interests or of
any other rights or remedies in respect of the Collateral hereunder except (1)
as may be required in connection with any disposition of Collateral consisting
of securities by laws affecting the offering and sale of securities generally,
and (2) as may be required by the FCC Rules and the Comunications Act.

         9. Copyrights.

         (a) Royalties. Each Grantor hereby agrees that the use by Bank of the
Copyrights as authorized hereunder in connection with Bank's exercise of their
rights and remedies hereunder shall be without any liability for royalties or
other related charges from Bank to Grantors.

         (b) Restrictions on Future Agreements. Subject to the terms hereof and
of the Credit Agreement, each Grantor shall be permitted to manage, license and
administer its Copyrights in such manner as such Grantor in its reasonable
business judgment deems desirable, provided, however, that such Grantor will
not, without the Bank's prior written consent, such consent not to be
unreasonably withheld, (i) enter into any copyright license agreements except
license agreements entered into in the ordinary course of its business
consistent with past practices and containing such additional provisions to
protect Bank's interest hereunder as Bank may from time to time reasonably
request or (ii) take any action, or permit any action to be taken by others,
including, without limitation, licensees, or fail to take any action, which
would customarily be taken by a Person in the same business and in similar
circumstances as such Grantor, which could in any respect reasonably be expected
to have a Material Adverse Effect.

         (c) Duties of Grantors. Each Grantor shall have the duty to:

             (i) prosecute diligently any copyright application included in the
Copyrights,

                                      -12-
<PAGE>

             (ii) upon the occurrence and during the continuance of an Event of
Default, at the request of Bank, make application for registration of such
uncopyrighted but copyrightable material owned by such Grantor as Bank
reasonably deems appropriate if the failure to do so could reasonably be
expected to have a Material Adverse Effect,

             (iii) place notices of copyright on all copyrightable property
produced or owned by such Grantor embodying the Copyrights and use diligent
reasonable efforts to have its licensees do the same and

             (iv) take all reasonable action necessary in such Grantor's
reasonable business judgment consistent with past practices to preserve and
maintain all of Grantor's rights in the Copyrights that are or shall be
necessary in the operation of Grantor's business, including, without limitation,
making timely filings for renewals and extensions of registered Copyrights and
diligently monitoring unauthorized use thereof, unless the failure to do so
could not reasonably be expected to have a Material Adverse Effect. Any expenses
incurred in connection with the foregoing shall be borne by Grantors. Bank shall
have no duty with respect to the Copyrights other than to act lawfully and
without gross negligence or willful misconduct. Without limiting the generality
of the foregoing, Bank shall not be under any obligation to take any steps
necessary to preserve rights in the Copyrights against any other parties, but
Bank may do so at its option upon the occurrence and during the continuance of
an Event of Default, and all reasonable expenses incurred in connection
therewith shall be for the sole account of Grantors and shall be added to the
Obligations.

         10. Patents and Marks.

         (a) Royalties. Each Grantor hereby agrees that any rights granted
hereunder to Bank with respect to Patents and Marks shall be applicable to all
jurisdictions in which such Grantor has the right to use such Patents and Marks,
from time to time, and without any liability for royalties or other related
charges from Bank to Grantors.

         (b) Restrictions on Future Agreements. Each Grantor will not, without
Bank's prior written consent, such consent not to be unreasonably withheld,
abandon any Patent or Mark in which such Grantor now owns or hereafter acquires
any rights or interests if such abandonment could reasonably be expected to have
a Material Adverse Effect or enter into any agreement, including, without
limitation, any license agreement, which is inconsistent with such Grantor's
obligations under this Agreement, if such actions could reasonably be expected
to have a Material Adverse Effect. Each Grantor further agrees that it will not
take any action, or permit any action to be taken by others subject to its
control, including licensees, or fail to take any action which would customarily
be taken by a Person in the same business and in similar circumstances as such
Grantor, which could reasonably be expected to have a Material Adverse Effect.

         (c) Duties of Grantors. Each Grantor shall have the duty to

                                      -13-
<PAGE>

             (i) prosecute diligently any patent application or trademark
application pending as of the date hereof or thereafter until the Obligations
shall have been indefeasibly paid in full and Bank has no obligation to make any
Loans under the Credit Agreement,

             (ii) upon the occurrence and during the continuance of an Event of
Default, make application on unpatented but patentable inventions owned by such
Grantor and on Marks, as the case may be, as Bank reasonably deems appropriate,

             (iii) file and prosecute opposition and cancellation proceedings if
the failure to do so could reasonably be expected to have a Material Adverse
Effect and

             (iv) take all reasonable action necessary in such Grantor's
reasonable business judgment consistent with past practices to preserve and
maintain all rights in patent applications of the Patents and in applications
for registrations of the Marks unless the failure so to do could not reasonably
be expected to have a Material Adverse Effect. Any expenses incurred in
connection with such applications shall be borne by Grantors. Each Grantor shall
not abandon any right to file a Patent application or Mark application without
the consent of Bank (which consent shall not be unreasonably withhold) if such
abandonment could reasonably be expected to have a Material Adverse Effect. Each
Grantor shall give proper statutory notice in connection with its use of each of
the Marks to the extent necessary for the protection of each of the Marks.
Grantors shall notify the Bank of any suits it commences to enforce the Patents
and Marks and shall provide Bank with copies of any documents reasonably
requested by Bank relating to such suits.

         11. Grantors' Covenants. In addition to the other covenants and
agreements set forth herein and in the other Operative Documents, each Grantor
covenants and agrees as follows:

         (a) Such Grantor will pay, prior to delinquency, all taxes, charges,
Liens and assessments against the Collateral owned by it, except those with
respect to which the amount or validity is being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of such Grantor and except those which
could not reasonably be expected to have a Material Adverse Effect.

         (b) The Collateral will not be used in violation of any material law,
regulation or ordinance or any applicable laws (including without limitation,
all applicable regulations, rules and orders), nor used in any way that will
void or impair any insurance required to be carried in connection therewith.

         (c) Such Grantor will keep the Collateral in reasonably good repair,
working order and operating condition (normal wear and tear excluded), and from
time to time make all necessary and proper repairs, renewals, replacements,
additions and improvements thereto and, as appropriate and applicable, will
otherwise deal with the Collateral in all such ways as are considered customary
practice by owners of like property.

                                      -14-
<PAGE>

         (d) Such Grantor will take all reasonable steps to preserve and protect
the Collateral except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

         (e) Such Grantor will maintain all insurance coverage required pursuant
to Section 6.01 of the Credit Agreement.

         (f) Such Grantor will promptly notify Bank in writing in the event of
any material damage to the Collateral from any source whatsoever.

         (g) Such Grantor will not (i) establish any location of Collateral not
listed in Schedule 2, (ii) move its principal place of business, chief executive
offices or any other office listed in Schedule 3 or (iii) adopt, use or conduct
business under any trade name or other corporate or fictitious name not
disclosed in Schedule 4, except upon not less than 30 days prior written notice
to Bank and such Grantor's prior compliance with all applicable requirements of
Section 4 hereof necessary to perfect Bank's security interest hereunder.

         (h) Subject to the provisions of Section 15(j) hereof, such Grantor
agrees to take any action which Bank may reasonably request in order to obtain
from the FCC such approval as may be necessary to enable Bank to exercise and
enjoy the full rights and benefits granted to them by this Agreement, including
the use of such Grantor's best efforts to assist in obtaining the approval of
the FCC for any action or transaction contemplated by this Agreement or any
other Operative Document for which such approval is required by law.

         (i) Such Grantor shall cause all of its equipment constituting
Collateral to be operated and maintained in accordance with any applicable
manufacturer's manuals or instructions and the requirements of its insurance
policies. Such Grantor, at its expense, shall maintain such equipment in good
condition, reasonable wear and tear excepted, and will comply with all laws,
ordinances and regulations to which the use and operation of such equipment may
be or become subject. Such obligation shall extend to repair and replacement of
any partial loss or damage to such equipment, regardless of the cause. If
maintenance is mandated by the manufacturer, such Grantor shall obtain and keep
in effect at all times during the Term maintenance service contracts with the
vendor of such equipment or suppliers approved by Lessor, such approval not to
be unreasonably withheld. All parts furnished in connection with such
maintenance or repair shall immediately become part of such equipment. All such
maintenance, repair and replacement services shall be immediately paid for and
discharged by such Grantor with the result that no lien will attach to such
equipment. Only qualified personnel of such Grantor or qualified contract
personnel shall operate such equipment. Such equipment shall be used only for
the purposes for which it was designed. Upon prior written notice to Lessor,
such Grantor may make improvements, modifications or additions to such
equipment; provided, that if such improvements, modifications or additions are
not capable of being removed without causing material damage to such equipment,
then Lessor's prior written consent shall be required. Upon the return of such
equipment, such Grantor shall, at its expense, restore such equipment to the
original configuration in accordance with the manufacturer's

                                      -15-
<PAGE>

specifications; provided, that, with Lessor's prior written consent, such
Grantor may return such equipment as so improved, modified or added to.

         12. Bank's Rights Regarding Collateral. At any time and from time to
time, Bank may, to the extent necessary or desirable to protect the security
hereunder, but Bank shall not be obligated to: (a) (whether or not a Default has
occurred) itself or through its representatives, at its own expense, upon
reasonable notice and at such reasonable times during usual business hours,
visit and inspect any of the Grantors' properties and examine and make abstracts
from any of its books and records at any reasonable time and as often as may
reasonably be desired and discuss the business, operations, properties and
financial and other condition of any of the Grantors with officers of such
Grantors and with their accountants or (b) if an Event of Default has occurred
and is continuing, at the expense of the Grantors, perform any obligation of any
of the Grantors under this Agreement. At any time and from time to time, at the
expense of the Grantors, Bank may, to the extent necessary or desirable to
protect the security hereunder, but Bank shall not be obligated to: (i) notify
obligors of the Collateral that the Collateral has been pledged as security to
Bank; (ii) after an Event of Default has occurred and is continuing, at any time
and from time to time request from obligors of the Collateral, in the name of
the applicable Grantor or in the name of Bank, information concerning the
Collateral and the amounts owing thereon; and (iii) after an Event of Default
has occurred and is continuing, direct obligors under the contracts included in
the Collateral to direct their performance to Bank. Each Grantor shall keep
proper books and records and accounts in which full, true and correct entries in
conformity with GAAP and all applicable laws (including without limitation, all
applicable regulations, rules and orders) shall be made of all material dealings
and transactions pertaining to the Collateral. Bank shall at all reasonable
times on reasonable notice have full access to and the right to audit any and
all of Grantors' books and records pertaining to the Collateral, and to confirm
and verify the value of the Collateral. Bank shall not be under any duty or
obligation whatsoever to take any action to preserve any rights of or against
any prior or other parties in connection with the Collateral, to exercise any
voting rights or managerial rights with respect to any Collateral or to make or
give any presentments for payment, demands for performance, notices of
non-performance, protests, notices of protest, notices of dishonor or notices of
any other nature whatsoever in connection with the Collateral or the
Obligations. Bank shall not be under any duty or obligation whatsoever to take
any action to protect or preserve the Collateral or any rights of the Grantors'
therein, or to make collections or enforce payment thereon, or to participate in
any foreclosure or other proceeding in connection therewith. Nothing contained
herein or in any consent shall constitute an assumption by Bank of any of the
Grantors' obligations under the contracts assigned hereunder unless Bank shall
have given written notice to the counterpart to such assigned contract of Bank's
intention to assume such contract. Each Grantor shall continue to be liable for
performance of its obligations under such contracts.

         13. Collections on the Collateral. Except as provided to the contrary
in the Credit Agreement, each Grantor shall have the right to use and to
continue to make collections on and receive dividends and other proceeds of all
of the Collateral in the ordinary course of business so long as no Event of
Default shall have occurred and be continuing. Upon the occurrence and during
the continuance of an Event of Default, at the option of Bank, each Grantor's
right to make collections on and receive dividends and other proceeds of the
Collateral and to use or

                                      -16-
<PAGE>

dispose of such collections and proceeds shall terminate, and any and all
dividends, proceeds and collections, including all partial or total prepayments,
then held or thereafter received on or on account of the Collateral will be held
or received by such Grantor in trust for Bank and immediately delivered in kind
to Bank (duly endorsed to Bank, if required), to be applied to the obligations
or held as Collateral, as Bank shall elect. Upon the occurrence and during the
continuance of an Event of Default, Bank shall have the right at all times to
receive, receipt for, endorse, assign, deposit and deliver, in the name of any
of the Grantors, any and all checks, notes, drafts and other instruments for the
payment of money constituting proceeds of or otherwise relating to the
Collateral; and each Grantor hereby authorizes Bank to affix, by facsimile
signature or otherwise, the general or special endorsement of such Grantor, in
such manner as Bank shall deem advisable, to any such instrument in the event
the same has been delivered to or obtained by Bank without appropriate
endorsement, and Bank and any collecting bank are hereby authorized to consider
such endorsement to be a sufficient, valid and effective endorsement by such
Grantor, to the same extent as though it were manually executed by the duly
authorized representative of such Grantor, regardless of by whom or under what
circumstances or by what authority such endorsement actually is affixed, without
duty of inquiry or responsibility as to such matters, and such Grantor hereby
expressly waives demand, presentment, protest and notice of protest or dishonor
and all other notices of every kind and nature with respect to any such
instrument.

         14. Possession of Collateral by Bank. All the Collateral now,
heretofore or hereafter delivered to Bank shall be held by Bank in its
possession, custody and control. Upon the occurrence and during the continuance
of an Event of Default, whenever any of the Collateral is in Bank's possession,
custody or control, Bank may use, operate and consume the Collateral, whether
for the purpose of preserving and/or protecting the Collateral, or for the
purpose of performing any of the Grantors' obligations with respect thereto, or
otherwise so long as consistent with the Operative Documents or transactions
contemplated thereby. Bank may at any time deliver or redeliver the Collateral
or any part thereof to the Grantors, and the receipt of any of the same by the
Grantors shall be complete and full acquittance for the Collateral so delivered,
and Bank thereafter shall be discharged from any liability or responsibility
arising after such delivery to the Grantors. So long as Bank exercises
reasonable care and complies with Section 9207 of the UCC with respect to any
Collateral in its possession, custody or control, Bank shall have no liability
for any loss of or damage to any Collateral, and in no event shall Bank have
liability for any diminution in value of Collateral occasioned by economic or
market conditions or events.

         15. Remedies. Provided that nothing contained in this Agreement shall
be construed to give Bank or any purchaser of the Collateral the right to
operate or control any aspect of the business of any of the Grantors that
requires an FCC License without the prior consent of the FCC, to the extent
required by law or the terms of any FCC License or the FCC Rules:

         (a) Rights Upon Event of Default. Upon the occurrence and during the
continuance of an Event of Default, the Grantors shall be in default hereunder
and, subject to applicable law, Bank shall have, in any jurisdiction where
enforcement is sought, in addition to all other rights
and remedies that Bank

                                      -17-
<PAGE>

may have under this Agreement and under applicable laws or in equity, all rights
and remedies of a secured party under the Uniform Commercial Code as enacted in
any such jurisdiction in effect at that time, and in addition the following
rights and remedies, all of which may be exercised with or without further
notice to the Grantors except such notice as may be specifically required by
applicable law: (i) to foreclose the Liens and security interests created
hereunder or under any other Operative Document by any available judicial
procedure or without judicial process; (ii) to enter any premises where any
Collateral may be located for the purpose of securing, protecting, inventorying,
appraising, inspecting, repairing, preserving, storing, preparing, processing,
taking possession of or removing the same; (iii) to sell, assign, lease or
otherwise dispose of any Collateral or any part thereof, either at public or
private sale or at any broker's board, in lot or in bulk, for cash, on credit or
otherwise, with or without representations or warranties and upon such terms as
shall be commercially reasonable; (iv) to notify obligors on the Collateral that
the Collateral has been assigned to Bank and that all payments thereon, or
performance with respect thereto, are to be made directly and exclusively to
Bank; (v) to collect by legal proceedings or otherwise all dividends,
distributions, interest, principal or other sums now or hereafter payable upon
or on account of the Collateral; (vi) to enter into any extension,
reorganization, disposition, merger or consolidation agreement, or any other
agreement relating to or affecting the Collateral, and in connection therewith
Bank may deposit or surrender control of the Collateral and/or accept other
property in exchange for the Collateral as Bank reasonably deems appropriate and
is commercially reasonable; (vii) to settle, compromise or release, on terms
acceptable to Bank, in whole or in part, any amounts owing on the Collateral
and/or any disputes with respect thereto; (viii) to extend the time of payment,
make allowances and adjustments and issue credits in connection with the
Collateral in the name of the applicable Grantor for the benefit of Bank; (ix)
to enforce payment and prosecute any action or proceeding with respect to any or
all of the Collateral and take or bring, on behalf of itself or in the name of
the applicable Grantor, any and all steps, actions, suits or proceedings deemed
necessary or reasonably desirable by Bank to effect collection of or to realize
upon the Collateral, including any judicial or nonjudicial foreclosure thereof
or thereon, and each Grantor specifically consents to any nonjudicial
foreclosure of any or all of the Collateral or any other action taken by Bank
which may release any obligor from personal liability on any of the Collateral,
and each Grantor waives, to the extent permitted by applicable law, any right to
receive notice of any public or private judicial or nonjudicial sale or
foreclosure of any security or any of the Collateral, and any money or other
property received by Bank in exchange for or on account of the Collateral,
whether representing collections or proceeds of Collateral, and whether
resulting from voluntary payments or foreclosure proceedings or other legal
action taken by Bank or any of the Grantors, may be applied by Bank, without
notice to the Grantors, to the Obligations in such order and manner as Bank in
their sole discretion shall determine; (x) to insure, protect and preserve the
Collateral; (xi) to exercise all rights, remedies, powers or privileges provided
under any of the Operative Documents; and (xii) to remove, from any premises
where the same may be located, the Collateral and any and all documents,
instruments, files and records, and any receptacles and cabinets containing the
same, relating to the Collateral, and Bank may, at the cost and expense of the
Grantors, use such of its supplies, equipment, facilities and space at its
places of business as may be necessary or appropriate to properly administer,
process, store, control, prepare for sale or disposition and/or sell or dispose
of the Collateral or to properly administer and control the handling of
collections and realizations thereon, and Bank shall be deemed to have a
rent-free

                                      -18-
<PAGE>

tenancy of any premises of the Grantors for such purposes and for such
periods of time as reasonably required by Bank. So long as an Event of Default
has occurred and is continuing, each Grantor will, at Bank's request, assemble
the Collateral and make it available to Bank at places which Bank may designate,
whether at the premises of such Grantor or elsewhere, and will make available to
Bank, free of cost, all premises, equipment and facilities of such Grantor for
the purpose of Bank's taking possession of the Collateral or storing the same or
removing or putting the Collateral in salable form or selling or disposing of
the same.

         (b) Possession by Bank. Upon the occurrence and during the continuance
of an Event of Default, Bank also shall have the right, without notice or
demand, either in person, by Bank or by a receiver to be appointed by a court in
accordance with the provisions of applicable law (and each Grantor hereby
expressly consents, to the fullest extent permitted by applicable law, upon the
occurrence and during the continuance of an Event of Default to the appointment
of such a receiver), and, to the extent permitted by applicable law, without
regard to the adequacy of any security for the Obligations, to take possession
of the Collateral or any part thereof and to collect and receive the rents,
issues, profits, income and proceeds thereof. The taking possession of the
Collateral by Bank shall not cure or waive any Event of Default or notice
thereof or invalidate any act done pursuant to such notice. The rights, remedies
and powers of any receiver appointed by a court shall be as ordered by said
court.

         (c) Sale of Collateral. Any public or private sale or other disposition
of the Collateral may be held at any office of Bank, or at the Grantors' places
of business, or at any other place permitted by applicable law, and without the
necessity of the Collateral being within the view of prospective purchasers.
Bank may direct the order and manner of sale of the Collateral, or portions
thereof, as it in its sole and absolute discretion may determine provided such
sale is commercially reasonable, and each Grantor expressly waives, to the
extent permitted by applicable law, any right to direct the order and manner of
sale of any Collateral. Bank or any Person acting on Bank's behalf may bid and
purchase at any such sale or other disposition. In furtherance of Bank's rights
hereunder, each Grantor hereby grants to Bank an irrevocable, non-exclusive
license (exercisable without royalty or other payment by Bank) to use, license
or sublicense any patent, trademark, trade name, copyright or other intellectual
property in which Grantor now or hereafter has any right, title or interest
together with the right of access to all media in which any of the foregoing may
be recorded or stored; provided, however, that such license shall only be
exercisable in connection with the disposition of Collateral upon Bank's
exercise of its remedies hereunder.

         (d) Notice of Sale. Unless the Collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market, Bank will give the Grantors reasonable notice of the time and place of
any public sale thereof or of the time on or after which any private sale
thereof is to be made. The requirement of reasonable notice conclusively shall
be met if: (i) such notice is mailed, certified mail, postage prepaid, to the
Grantors at their addresses set forth on the signature page hereto or delivered
or otherwise sent to the Grantors, at least five (5) Business Days before the
date of the sale or (ii) if Grantors have previously executed any applications
for consent to the assignment of any FCC Licenses or for consent to the transfer
of control of any holder of such licenses. Each Grantor expressly waives, to the

                                      -19-
<PAGE>

fullest extent permitted by applicable law, any right to receive notice of any
public or private sale of any Collateral or other security for the Obligations
except as expressly provided for in this paragraph. Bank shall not be obligated
to make any sale of the Collateral if it shall determine not to do so regardless
of the fact that notice of sale of the Collateral may have been given. Bank may,
without notice or publication, except as required by applicable law, adjourn the
sale from time to time by announcement at the time and place fixed for sale, and
such sale may, without further notice (except as required by applicable law), be
made at the time and place to which the same was so adjourned.

         (e) Private Sales. With respect to any Collateral consisting of
securities, partnership interests, limited liability company interests, joint
venture interests or the like, and whether or not any of such Collateral has
been effectively registered under the Securities Act of 1933, as amended, or
other applicable laws, Bank may, in its sole and absolute discretion, sell all
or any part of such Collateral at private sale in such manner and under such
circumstances as Bank may deem necessary or advisable in order that the sale may
be lawfully conducted in a commercially reasonable manner. Without limiting the
foregoing, Bank may (i) approach and negotiate with a limited number of
potential purchasers, and (ii) restrict the prospective bidders or purchasers to
persons who will represent and agree that they are purchasing such Collateral
for their own account for investment and not with a view to the distribution or
resale thereof. In the event that any such Collateral is sold at private sale,
each Grantor agrees to the extent permitted by applicable law that if such
Collateral is sold for a price which is commercially reasonable, then (A) the
Grantors shall not be entitled to a credit against the Obligations in an amount
in excess of the purchase price, and (B) Bank shall not incur any liability or
responsibility to the Grantors in connection therewith, notwithstanding the
possibility that a substantially higher price might have been realized at a
public sale. Each Grantor recognizes that a ready market may not exist for such
Collateral if it is not regularly traded on a recognized securities exchange,
and that a sale by Bank of any such Collateral for an amount substantially less
than a pro rata share of the fair market value of the issuer's assets minus
liabilities may be commercially reasonable in view of the difficulties that may
be encountered in attempting to sell a large amount of such Collateral or
Collateral that is privately traded.

         (f) Title of Purchasers. Upon consummation of any sale of Collateral
hereunder, Bank shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each such purchaser at
any such sale shall hold the Collateral so sold absolutely free from any claim
or right upon the part of any Grantor or any other Person claiming through any
Grantor, and each Grantor hereby waives (to the extent permitted by applicable
laws) all rights of redemption, stay and appraisal which it now has or may at
any time in the future have under any rule of law or statute now existing or
hereafter enacted. If the sale of all or any part of the Collateral is made on
credit or for future delivery, Bank shall not be required to apply any portion
of the sale price to the Obligations until such amount actually is received by
Bank, and any Collateral so sold may be retained by Bank until the sale price is
paid in full by the purchaser or purchasers thereof. Bank shall not incur any
liability in case any such purchaser or purchasers shall fail to pay for the
Collateral so sold, and, in case of any such failure, the Collateral may be sold
again.

                                      -20-
<PAGE>

         (g) Disposition of Proceeds of Sale. The proceeds resulting from the
collection, liquidation, sale or other disposition of the Collateral shall be
applied, first, to the reasonable costs and expenses (including reasonable
attorneys' fees) of retaking, holding, storing, processing and preparing for
sale, selling, collecting and liquidating the Collateral, and the like; second,
to the satisfaction of all Obligations; and third, any surplus remaining after
the satisfaction of all Obligations, to be paid over to the Grantors or to
whomsoever may be lawfully entitled to receive such surplus.

         (h) Certain Waivers. To the extent permitted by applicable law, each
Grantor waives all claims, damages and demands against Bank arising out of the
repossession, retention or sale of the Collateral, or any part or parts thereof,
except to the extent any such claims, damages and awards arise out of the gross
negligence or willful misconduct of Bank.

         (i) Remedies Cumulative. The rights and remedies provided under this
Agreement are cumulative and may be exercised singly or concurrently, and are
not exclusive of any other rights and remedies provided by law or equity.

         (j) Compliance with Communications Act and FCC Rules and Regulations.

             (i) Notwithstanding any other provision of this Agreement, any
foreclosure on, sale, transfer or other disposition of, or the exercise of any
right to vote or consent with respect to, any of the Collateral as provided
herein or any other action taken or proposed to be taken by Bank hereunder which
would affect the operational, voting or other control of any entity holding an
FCC License shall be made in accordance with the Communications Act, the terms
of each FCC License, and any applicable FCC Rules, including any requirement
that there be a public or private sale.

             (ii) If an Event of Default shall have occurred and be continuing,
each Grantor shall take any action which Bank may request in the exercise of its
rights and remedies under this Agreement, including, but not limited to, the
execution and delivery of any documents requested by Bank, in order to transfer
and assign to Bank or to one or more third parties as Bank may designate,
including, but not limited to, a receiver or trustee or to a combination of the
foregoing, the Collateral for the purposes of a public or private sale. Upon the
occurrence and during the continuance of an Event of Default, each Grantor shall
further use its best efforts to assist in obtaining the approval of the FCC (and
that required by any other Governmental Authority) for any action or transaction
contemplated by this Agreement, including without limitation, the preparation,
execution and filing with the FCC of the assignor's or transferor's portion of
any application or applications for consent to the assignment of any FCC License
or transfer of control of any entity holding or controlling any FCC License as
may be necessary or appropriate under the FCC Rules. Each Grantor further agrees
that, because of the unique nature of its undertaking in this Section 13(j), the
same may be specifically enforced, and it hereby waives, and agrees to waive,
any claim or defense that Bank would have an adequate remedy at law for the
breach of this undertaking and any requirement for the posting of bond or other
security. Each Grantor hereby agrees that in the event that such Grantor has
been given five Business

                                      -21-
<PAGE>

Days' prior written notice telecopied to its telecopier number set forth on the
signature page hereto and such Grantor has not responded by executing any such
applications or other instruments, the clerk of the court of any court of
competent jurisdiction may execute in the place of such Grantor any application
or other instrument necessary or appropriate for the obtaining of such consent.
This Section 13(j) shall not be deemed to limit any other rights of Bank
available under applicable law and consistent with the Communications Act and
the applicable FCC Rules.

         16. Notice. Bank shall use reasonable efforts to give the Grantors
prior written notice of the exercise of any remedy provided for herein, provided
that the failure to give such notice shall not subject Bank to liability and
shall not affect the validity or exercise of any remedy hereunder.

         17. Bank Appointed Attorney-in-Fact. To the full extent permitted by
applicable law, including the Communications Act and FCC Rules, each Grantor
hereby irrevocably appoints Bank as such Grantor's attorney-in-fact, with full
authority in the place and stead of such Grantor, and in the name of such
Grantor, or otherwise, from time to time, in Bank's sole and absolute discretion
to do any of the following acts or things upon the occurrence and during the
continuance of an Event of Default: (a) to do all acts and things and to execute
all documents necessary or advisable to perfect and continue perfected the
security interests created by this Agreement and to preserve, maintain and
protect the Collateral; (b) to do any and every act which such Grantor is
obligated to do under this Agreement; (c) to prepare, sign, file and record, in
such Grantor's name, any financing statement covering the Collateral; (d) to
endorse and transfer the Collateral upon foreclosure by Bank; and (e) to file
any claims or take any action or institute any proceedings which Bank may
reasonably deem necessary or desirable for the protection or enforcement of any
of the rights of Bank with respect to any of the Collateral; provided, however,
that Bank shall be under no obligation whatsoever to take any of the foregoing
actions, and Bank shall have no liability or responsibility for any act or
omission (other than Bank's own gross negligence or willful misconduct) taken
with respect thereto.

         18. Costs and Expenses. Each Grantor shall pay on demand (i) all
reasonable fees and expenses, including reasonable attorneys' fees and expenses,
incurred by Bank in connection with the preparation, execution and delivery of,
and the exercise of its duties under, this Agreement (not to exceed $50,000),
(ii) all reasonable fees and expenses, including reasonable attorneys' fees and
expenses, incurred by Bank in connection with the preparation, execution and
delivery of amendments and waivers hereunder and (iii) all reasonable fees and
expenses, including reasonable attorneys' fees and expenses, incurred by Bank in
connection with the enforcement or attempted enforcement of this Agreement or
any of the Obligations or in preserving any of Bank's rights and remedies
(including, without limitation, all such fees and expenses incurred in
connection with any "workout" or restructuring affecting the Operative Documents
or the Obligations or any bankruptcy or similar proceeding involving such
Grantor, any other Grantor, Borrower or any of their Affiliates).

                                      -22-
<PAGE>

         19. Transfers and Other Liens. Each Grantor agrees that, except as
specifically permitted under the Credit Agreement or any other Operative
Document, it will not (a) sell, assign, exchange, transfer or otherwise dispose
of, or contract to sell, assign, exchange, transfer or otherwise dispose of, or
grant any option with respect to, any of the Collateral, or (b) create or permit
to exist any Lien upon or with respect to any of the Collateral, except for
legally permissible Liens in favor of Bank or otherwise permitted under the
Credit Agreement or any other Operative Document.

         20. Other Agreements; Governing Agreement. Nothing herein shall in any
way modify or limit the effect of terms or conditions set forth in any other
Operative Document executed by the Grantors or any other Person in connection
with the Obligations, but each and every term and condition hereof shall be in
addition thereto; provided, however, that in the event of inconsistency between
this Agreement and the Credit Agreement, the Credit Agreement shall govern.

         21. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement.

         22. Understandings With Respect to Waivers and Consents. Each Grantor
warrants and agrees that each of the waivers and consents set forth herein are
made with full knowledge of their significance and consequences, with the
understanding that events giving rise to any defense or right waived may
diminish, destroy or otherwise adversely affect rights which such Grantor
otherwise may have against Bank or others, or against any Collateral. If any of
the waivers or consents herein are determined to be unenforceable under
applicable law, such waivers and consents shall be effective to the maximum
extent permitted by law.

         23. Indemnity. Each Grantor shall indemnify, reimburse and hold Bank,
each of Bank's members, and each of their respective successors, assigns,
agents, officers, directors, shareholders, servants, agents and employees
harmless from and against all liabilities, losses, damages, actions, suits,
demands, claims of any kind and nature (including claims relating to
environmental discharge, cleanup or compliance), all costs and expenses
whatsoever to the extent they may be incurred or suffered by such indemnified
party in connection therewith (including reasonable attorneys' fees and
expenses), fines, penalties (and other charges of applicable governmental
authorities), licensing fees relating to any item of Collateral, damage to or
loss of use of property (including consequential or special damages to third
parties or damages to Borrower's property), or bodily injury to or death of any
person (including any agent or employee of Borrower) (each, a "Claim"), directly
or indirectly relating to or arising out of the use of the proceeds of the Loan,
the falsity of any representation or warranty of such Grantor or such Grantor's
failure to comply with the terms of this Agreement or any other Operative
Document during the Term. The foregoing indemnity shall cover, without
limitation, (i) any Claim in connection with a design or other defect (latent or
patent) in any item of equipment included in the Collateral, (ii) any Claim for
infringement of any patent, copyright, trademark or other intellectual property
right, (iii) any Claim resulting from the presence on or under or

                                      -23-
<PAGE>

the escape, seepage, leakage, spillage, discharge, emission or release of any
Hazardous Materials on the premises of such Grantor, including any Claims
asserted or arising under any Environmental Law, or (iv) any Claim for
negligence or strict or absolute liability in tort; provided, however, that such
Grantor shall not indemnify Bank for any liability incurred by Bank as a result
of Bank's gross negligence or willful misconduct. Such indemnities shall
continue in full force and effect, notwithstanding the expiration or termination
of this Agreement. Upon an indemnitee's written demand, such Grantor shall
assume and diligently conduct, at its sole cost and expense, the entire defense
of Bank, each of its members, and each of their respective agents, employees,
directors, officers, shareholders, successors and assigns, using counsel
reasonably acceptable to such indemnitee against any indemnified Claim. Such
Grantor shall not settle or compromise any Claim against or involving Bank
without first obtaining Bank's written consent thereto, which consent shall not
be unreasonably withheld. If Bank elects to assume its own defense in connection
with an indemnified Claim, then Bank shall not settle or compromise such Claim
without first obtaining such Grantor's written consent thereto, which consent
shall not be unreasonably withheld, provided that if such Grantor does not
consent thereto, then Borrower shall post security or a bond in the amount of
such Claim for the benefit of the Bank.

         24. Amendments, Etc. No amendment or waiver of any provision of this
Agreement nor consent to any departure by the Grantors herefrom (other than
supplements to the Schedules hereto in accordance with the terms of this
Agreement) shall in any event be effective unless the same shall be in writing
and made in accordance with of the Credit Agreement, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

         25. Notices. All notices and other communications provided for
hereunder shall be given in the manner and to the addresses set forth either in
the Credit Agreement or in the Guaranty dated as of even date herewith made by
the Grantors.

         26. Continuing Security Interest: Transfer of Notes; Termination. This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until indefeasible payment in full of
the Obligations and the termination or expiration of Bank's obligation to make
Loans under the Credit Agreement, (ii) be binding upon each Grantor, their
successors and assigns and (iii) inure, together with the rights and remedies of
Bank hereunder, to the benefit of Bank and any successor Bank, subject to the
terms and conditions of the Credit Agreement. Subject to the terms of the Credit
Agreement, any Bank may assign or otherwise transfer any Loan, or any rights in
Collateral held by it to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to such Bank or
Bank herein or otherwise. Nothing set forth herein or in any other Operative
Document is intended or shall be construed to give to any other party any right,
remedy or claim under, to or in respect of this Agreement or any other Operative
Document or any Collateral. The Grantors' successors and assigns shall include,
without limitation, a receiver, trustee or debtor-in-possession thereof or
therefor, provided that, except as otherwise permitted under the Credit
Agreement or any other Operative Document, none of the rights or

                                      -24-
<PAGE>

obligations of the Grantors hereunder may be assigned or otherwise transferred
without the prior written consent of Bank.

         27. Release of the Grantors. This Agreement and all obligations of each
Grantor hereunder and all security interests granted hereby shall be released
and terminated when all Obligations have been paid in full in cash and when
Bank's obligation to make Loans under the Credit Agreement has expired or have
otherwise been terminated. Upon such release and termination of all Obligations
and the security interest hereunder, all rights in and to the Collateral granted
or pledged by the Grantors hereunder shall automatically revert to the Grantors,
and Bank shall return any pledged Collateral in their possession to the
Grantors, or to the Person or Persons legally entitled thereto, and shall
endorse, execute, deliver, record and file all instruments and documents, and do
all other acts and things, reasonably required for the return of the Collateral
to the Grantors, or to the Person or Persons legally entitled thereto, and to
evidence or document the release of the interests of Bank arising under this
Agreement, all as reasonably requested by, and at the sole expense of, the
Grantors.

         28. Governing Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS OTHERWISE REQUIRED
BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED
BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF CALIFORNIA ARE GOVERNED BY
THE LAWS OF SUCH JURISDICTION.

         29. Jury Trial. EACH GRANTOR AND BANK, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO
ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT.

         30. Limitation of Liability. NO CLAIM MAY BE MADE BY ANY GRANTOR
AGAINST BANK OR THE MEMBERS, AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES,
ATTORNEYS OF BANK FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES
IN RESPECT OF ANY CLAIM (WHETHER BASED UPON ANY BREACH OF CONTRACT, TORT, BREACH
OF STATUTORY DUTY OR ANY OTHER THEORY OF LIABILITY) ARISING OUT OF OR RELATED TO
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ANY ACT, OMISSION OR EVENT
OCCURRING IN CONNECTION THEREWITH AND EACH GRANTOR HEREBY WAIVES, RELEASES AND
AGREES NOT TO SUE UPON ANY CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT NOW
ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

         31. Covenant Not to Issue Uncertificated Securities. Each Grantor
covenants to Bank that any Pledged Securities held by them shall be in
certificated form (as contemplated by Article 8 of the Uniform Commercial Code),
and that it will not seek to convert all or any part of

                                      -25-
<PAGE>

any Pledged Securities into uncertificated form (as contemplated by Article 8 of
the Uniform Commercial Code).

         32. Covenant Not to Dilute Interests of Secured Party in Securities.
Each Grantor represents, warrants and covenants to Bank that it will (a) not at
any time cause or permit any Subsidiary that is an issuer of Pledged Securities
to issue any capital stock or any warrant options or other rights to acquire any
capital stock, other than to such Grantor or as otherwise permitted under the
Credit Agreement and (b) pledge to Bank in accordance with the terms hereof,
immediately upon its acquisition (directly or indirectly) thereof, any and all
shares of stock or other securities of each issuer of Pledged Securities.

         33. Pledged Limited Liability Company Interests/Covenant Not to Dilute.
Each Grantor represents, warrants and covenants to Bank that it will (a) not at
any time cause or permit any Pledged Entities to issue any additional membership
interests or any other rights or options to acquire any additional limited
liability company interests, other than to the Grantors or as otherwise
permitted under the Credit Agreement, and (b) pledge to Bank in accordance with
the terms hereof, immediately upon its acquisition (directly or indirectly)
thereof, any and all additional Limited Liability Company Interests of each
Pledged Entity.

         34. Pledged Partnership Interests/Covenant Not to Dilute. Each Grantor
represents, warrants and covenants to Bank that it will (a) not at any time
cause or permit any Pledged Partnership Entities to issue any additional
partnership interests or any other rights or options to acquire any additional
partnership interests, other than to the Grantors or as otherwise permitted
under the Credit Agreement, and (b) pledge to Bank in accordance with the terms
hereof, immediately upon its acquisition (directly or indirectly) thereof, any
and all additional Partnership Interests of each Pledged Partnership Entity.

                                      -26-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto, by their officers
thereunto duly authorized, have executed this Agreement as of the day and year
first above written.

                                    CHADMOORE WIRELESS GROUP, INC.

                                    By: /s/ Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    CHADMOORE COMMUNICATIONS, INC.

                                    By: /s/ Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT TANNER, INC.

                                    By:  /s/ Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT BEACON HILL, INC.

                                    By:  /s/ Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                      -27-
<PAGE>

                                    PTT OF NEVADA, INC.

                                    By:  /s/ Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    CMRS SYSTEMS, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    CHADMOORE COMMUNICATIONS OF TENNESSEE, INC.

                                    By:  /s/ Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT COMMUNICATIONS OF RICHMOND, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT MAPLE, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                      -28-
<PAGE>

                                    PTT COMMUNICATIONS OF HUNTSVILLE, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT BURTON, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT COMMUNICATIONS OF FORT WAYNE, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT COMMUNICATIONS OF ROANOKE, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT TRISTAN, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                      -29-
<PAGE>

                                    PTT COMMUNICATIONS OF AUSTIN, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT COMMUNICATIONS OF JACKSONVILLE, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT COMMUNICATIONS OF VIRGINIA BEACH,LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT ROSELAND, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT ARTINA, INC.

                                      -30-
<PAGE>

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT FRANKLIN, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT CHACO, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    800 SMR NETWORK, INC.

                                    By:  /s/Robert W. Moore
                                    Name:  Robert W. Moore
                                    Title:  President

                                    PTT COMMUNICATIONS OF BATON ROUGE
                                    LIMITED

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT COMMUNICATIONS OF LAKE CHARLES,  LLC

                                      -31-
<PAGE>

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    PTT COMMUNICATIONS OF BAY CITY, LLC

                                    By:  /s/Rick D. Rhodes
                                    Name:  Rick D. Rhodes
                                    Title:  Manager

                                    BARCLAYS BANK PLC

                                    By:  /s/Philip Capparis
                                    Name:  Philip Capparis
                                    Title:  Director

                                      -32-
<PAGE>

                                   Exhibit A-1
                                   -----------
To Security Agreement

                              FORM OF PLEDGE NOTICE

                             [Letterhead of Grantor]

                                                                    [Date]

TO:      [Name of Pledged Entity]

         Notice is hereby given that, pursuant to the Security Agreement (a true
and correct copy of which is attached hereto), dated as of [Date] (as amended,
modified or supplemented from time to time in accordance with the terms thereof,
the "Security Agreement"), among [NAME OF GRANTOR] (the "Grantor"), the other
pledgors from time to time party thereto and BARCLAYS BANK PLC(the "Bank"), the
Grantor has pledged and assigned to the Bank, and granted to the Bank a
continuing security interest in, all right, title and interest of the Grantor,
whether now existing or hereafter arising or acquired, as a [[limited partner]
[general partner]] [member] in [NAME OF PLEDGED ENTITY] (the ["Partnership"]
["LLC"]), and in, to and under the [TITLE OF APPLICABLE AGREEMENT] (the
"[Partnership] [LLC] Agreement"), including, without limitation:

         (i) all the capital of the [Partnership] [LLC] and the Grantor's
interest in all profits, income, surplus, losses, [Partnership] [LLC] assets and
other distributions to which the Grantor shall at any time be entitled in
respect of such [Partnership] [Membership] interest;

         (ii) all other payments due or to become due to the Grantor in respect
of such [partnership [limited liability company] interest, whether under the
[Partnership] [LLC] Agreement or otherwise, whether as contractual obligations,
damages, insurance proceeds or otherwise;

         (iii) all of its claims, rights, powers, privileges, authority,
options, security interest, liens and remedies, if any, under the [Partnership]
[LLC] Agreement or at law or otherwise in respect of such [Partnership]
[Membership] Interest;

                                      -33-
<PAGE>

         (iv) all present and future claims, if any, of the Grantor against the
[Partnership [LLC] for moneys loaned or advanced, for services rendered or
otherwise;

         (v) all of the Grantor's rights under the [Partnership] [LLC] Agreement
or at law to exercise and enforce every right, power, remedy, authority, option
and privilege of the Grantor relating to the [Partnership] [Membership]
Interest, including any power to terminate, cancel or modify the [Partnership]
[LLC] Agreement, to execute any instruments and to take any and all other action
on behalf of and in the name of the Grantor in respect of the [Partnership]
[Membership] Interest and the [Partnership] [LLC], to make determinations, to
exercise any election (including, but not limited, election of remedies) or
option or to give or receive any notice, consent, amendment, waiver or approval,
together with full power and authority to demand, receive, enforce, collect or
receipt for any of the foregoing, to enforce or execute any checks, or other
instruments or orders, to file any claims and to take any action in connection
with any of the foregoing;

         (vi) all other property hereafter delivered in substitution for or in
addition to any of the foregoing, all certificates and instruments representing
or evidencing such other property and all cash, securities, interest, dividends,
rights and other property at any time and from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all thereof;
and

         (vii) to the extent not otherwise included, all proceeds of any or all
of the foregoing.

         Pursuant to the Security Agreement, the [Partnership] [LLC] is hereby
authorized and directed to register the Grantor's pledge to the Bank of the
interest of the Grantor on the [Partnership's] [LLC's] books.

         The Grantor hereby requests the [Partnership] [LLC] to indicate the
[Partnership's] [LLC's] acceptance of this Notice and consent to and
confirmation of its terms and provisions by signing a copy hereof where
indicated on the attached page and returning the same to the Bank.

                                        [NAME OF GRANTOR]
                                        By
                                          --------------------------------------
                                        Name:
                                        Title:

                                      -34-
<PAGE>
                                   Exhibit A-2
                                   -----------
To Security Agreement

                          FORM OF ISSUER ACKNOWLEDGMENT
                          -----------------------------

         [NAME OF PLEDGED ENTITY] (the ["Partnership"] ["LLC"]) hereby
acknowledges receipt of a copy of the assignment by [NAME OF GRANTOR]
("Grantor") of its interest under the [TITLE OF APPLICABLE AGREEMENT] (the
"[Partnership] [LLC] Agreement") pursuant to the terms of the Security
Agreement, dated as of [Date] (as amended, modified or supplemented from time to
time in accordance with the terms thereof, the "Security Agreement"), among the
Grantor, the other grantors from time to time party thereto, and BARCLAYS BANK
PLC (the "Bank"). The undersigned hereby further confirms (i) the registration
of the Grantor's pledge of its interest to the Bank on behalf of the Secured
Creditors on the [Partnership's] [LLC's] books and (ii) upon receipt from the
Bank of a notice stating that an "Event of Default" has occurred and is
continuing, subject to applicable law, including the Communications Act and the
FCC Rulees, the undersigned shall only comply with instructions originated by
the Bank with respect to the pledge of the interest referred to above
notwithstanding contrary instructions given by any other person or entity,
including the Grantor until such time as otherwise notified by the Bank.

Dated:   _______, ____

                                        [NAME OF PLEDGED ENTITY]
                                        BY
                                           -------------------------------------
                                        Name:
         Title:

<PAGE>

                                    Exhibit B
                                    ---------

                              To Security Agreement
                              ---------------------

                            [SEPARATE INSTRUMENT FOR
                            EACH FORM OF COLLATERAL]

         GRANT OF SECURITY INTEREST

                        [PATENTS][TRADEMARKS][COPYRIGHTS]

THIS GRANT OF SECURITY INTEREST, dated as of ________________, 199_, is executed
by [GRANTOR], a [state of incorporation] corporation ("Grantor"), in favor of
BARCLAYS BANK PLC ("Secured Party").

         A. Pursuant to a Senior Secured Credit Agreement, dated as of [Date]
(the "Credit Agreement"), among Chadmoore Wireless Group, Inc. ("Chadmoore"),
the subsidiaries of Chadmoore party thereto (collectively, the "Subsidiaries,"
and together with Chadmoore, the "Borrowers") and Secured Party, Secured Party
has agreed to extend certain credit facilities to Borrowers upon the terms and
subject to the conditions set forth therein.

         [B. Grantor owns the letters patent, and/or applications for letters
patent, of the United States, more particularly described on Schedules 1-A and
1-B annexed hereto as part hereof (collectively, the "Patents");]

         [B. Grantor has adopted, used and is using the trademarks, more
particularly described on Schedules 1-A and 1-B annexed hereto as part hereof,
which trademarks are registered or subject to an application for registration in
the United States Patent and Trademark Office (collectively, the "Trademarks");]

         [B. Grantor owns the copyrights registered in the United States
Copyright Office, more particularly described on Schedule 1-A annexed hereto as
part hereof (collectively, the "Copyrights");]

         C. Grantor has entered into a Security Agreement dated the date hereof
(the "Security Agreement") in favor of Secured Party; and

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Patents, together with any reissue, continuation, continuation-in-part or
extension thereof, and all proceeds thereof, including any and all causes of
action which may exist by reason of infringement thereof for the full term of
the Patents (the "Collateral"), to secure the prompt payment, performance and
observance of the Obligations, as defined in the Security Agreement;

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Trademarks, together with the goodwill of the business symbolized by the
Trademarks and the customer lists and records related to the Trademarks

<PAGE>

and the applications and registrations thereof, and all proceeds thereof,
including any and all causes of action which may exist by reason of infringement
thereof (the "Collateral"), to secure the payment, performance and observance of
the Obligations, as defined in the Security Agreement;]

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Copyrights and the registrations thereof, together with any renewals or
extensions thereof, and all proceeds thereof, including any and all causes of
action which may exist by reason of infringement thereof for the full term of
the Copyrights (the "Collateral"), to secure the prompt payment, performance and
observance of the Obligations, as defined in the Security Agreement;]

         NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged, Grantor does hereby further grant to Secured Party a
security interest in the Collateral to secure the prompt payment, performance
and observance of the Obligations.

Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the security interest in the Collateral granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are hereby incorporated herein by reference as if fully set
forth herein.

         Secured Party's address is:                 BARCLAYS BANK PLC
                                                     222 Broadway
                                                     New York, NY  10038

<PAGE>

IN WITNESS WHEREOF, Grantor has caused this instrument to be executed as of the
day and year first above written.

[GRANTOR]

         By:

         Name:
              ---------------------------------------

Title:
      --------------------------------------

STATE OF NEVADA                     )
                                            )
COUNTY OF                           )
          --------------------------

         On _______________________________ __________, 199___ before me,
_________________________, personally appeared , personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in her/her/their authorized capacity(ies), and
that by his/her/their signature(s) on such instrument the person or entity on
behalf of which the person(s) acted executed the instrument.

              WITNESS my hand and official seal.

              Signature                                                 (Seal)
                        ----------------------------------

Exhibit 10.3
                               SECURITY AGREEMENT

                  This SECURITY AGREEMENT ("Agreement"), dated as of August 31,
2000 is made between each entity set forth on the signature pages hereto as a
grantor (each such entity and each entity which hereafter executes and delivers
a Borrower Joinder in substantially the form of Exhibit E to the Credit
Agreement or a Subsidiary Joinder in substantially the form of Attachment 1 to
the Guaranty (as defined below) to be referred to herein as a "Grantor", and
collectively as, the "Grantors") and BARCLAYS BANK PLC ("Bank").

                                    RECITALS

         A. Bank is entering into a Credit Agreement, dated as of August 31,
2000 (such agreement, as it may hereafter be amended or modified, the "Credit
Agreement" with Chadmoore Wireless Group, Inc. ("Chadmoore") and a Guaranty of
even date herewith with the subsidiaries of Chadmoore (collectively, the
"Subsidiaries").

         B. It is a condition precedent to the extension of credit by Bank under
the Credit Agreement that each Grantor shall have executed and delivered this
Agreement and shall have granted a security interest in all of its assets to
Bank in accordance herewith.

         C. Terms defined in the Credit Agreement and not otherwise defined
herein have the same respective meanings when used herein.

                                    AGREEMENT

                  NOW, THEREFORE, in order to induce Bank to enter into the
Credit Agreement and for other good and valuable consideration, the receipt and
adequacy of which hereby is acknowledged, each Grantor hereby represents,
warrants, covenants, agrees and grants as follows:

         1. Definitions. Unless the context otherwise requires, terms defined in
the Uniform Commercial Code of the State of New York (the "Uniform Commercial
Code") and not otherwise defined in this Agreement or in the Credit Agreement
shall have the meanings defined for those terms in the Uniform Commercial Code.
In addition, the following terms shall have the meanings respectively set forth
after each:

                  "Certificates" means all certificates, instruments and other
documents now or hereafter representing or evidencing any Pledged Securities or
Pledged Limited Liability Company Interests.

                  "Closing Date" shall mean the date of this Agreement.

                  "Collateral" means and includes all present and future right,
title, interest, claims and demands of each Grantor in or to any personal
property or assets whatsoever, whether now

                                      -1-
<PAGE>
owned or existing or hereafter arising or acquired and wheresoever located, and
all hereafter arising or acquired and wheresoever located, and all rights and
powers of such Grantor to transfer any interest in or to any personal property
or assets whatsoever, including without limitation, any and all of the following
personal property:

         (a) All present and future acounts, accounts receivable, agreements,
guaranties, contracts (including without limitation management agreements,
leases, contract rights and rights to payment (collectively, the "Accounts"),
together with all instruments, documents, chattel paper, security agreements,
guaranties, undertakings, surety bonds, insurance policies, notes and drafts,
and all forms of obligations owing to such Grantor or to which such Grantor may
have an interest, however created or arising;

         (b) All present and future general intangibles, including without
limitation, (i) each FCC License and each Other Authorization described on
Schedules 1.01(a)(1), 1.01(a)(2) and 1.01(a)(3) of the Nextel Agreement and
including without limitation, all of such Grantor's rights under or relating to
any FCC License or any Other Authorization and the proceeds of any FCC License
or Other Authorization; provided, however, that the Collateral does not include
at any time any FCC License to the extent, but only to the extent, that such
Grantor is prohibited at that time from granting a security interest therein
pursuant to the Communications Act and the FCC Rules, but includes, to the
maximum extent permitted by law, all of such Grantor's proprietary rights
vis-a-vis third parties under or relating to any FCC License and the rights to
receive all proceeds derived from or in connection with the sale, assignment or
transfer of such FCC License, (ii) all tax refunds of every kind and nature to
which such Grantor now or hereafter may become entitled, however arising, (iii)
all other refunds, (iv) all commitments to extend financing to such Grantor, (v)
all deposits, (vi) all goodwill, (vii) all choses in action, (viii) all
insurance proceeds, and (ix) all trade secrets, computer programs, software,
customer lists, trademarks, trade names, patents, licenses, copyrights,
tecnology, processes and proprietary information, including without limitation,
the Copyrights, the Patents and the Marks and the goodwill of such Grantor's
business connected with and symbolized by the Marks;

         (c) All present and future demand, time, savings, passbook, deposit and
like accounts (general or special) (collectively, the "Deposit Accounts") in
which such Grantor has any interest which is maintained with any bank, savings
and loan association, credit union or like organization and all money, cash and
cash equivalents of such Grantor, whether or not deposited in any Deposit
Account;

         (d) All present and future books and records, including without
limitation, books of account and ledgers of every kind and nature, all
electronically recorded data relating to such Grantor, all receptacles and
containers for such records, and all files and correspondence;

         (e) All present and future goods, including without limitation, all
equipment, machinery, audio and/or video recording equipment, transmitting
towers, transmitters, broadcasting equipment, videotapes, audio tapes, DAT tapes
and other recorded media, tools, molds, dies, furniture, furnishings, fixtures,
trade fixtures and all other goods used in connection with or in

                                      -2-
<PAGE>

the conduct of such Grantor's business, including without limitation, all goods
as defined in Section 9101(2) of the Uniform Commercial Code (collectively, the
"Equipment");

         (f) All present and future inventory and merchandise, including without
limitation, all present and future goods held for sale or lease or to be
furnished under a contract of service, all recorded media, all raw materials,
work in process and finished goods, all packing materials, supplies and
containers relating to or used in connection with any of the foregoing, and all
bills of lading, warehouse receipts and documents of title relating to any of
the foregoing (collectively, the "Inventory");

         (g) All present and future stocks, bonds, debentures, certificated and
uncertificated securities, security entitlements, subscription rights, options,
warrants, puts, calls, certificates, security accounts, commodity accounts,
commodity contracts, partnership interests, limited liability compnay interests,
joint venture interests and investment and/or brokerage accounts, and all other
investment properties, including without limitation, the Certificates, the
Pledged Securities, the Pledged Partnership Interests, the Pledged Limited
Liability Company Interests and all rights, preferences, privileges, dividends,
distributions (in cash or in kind), redemption payments or liquidation payments
with respect thereto;

         (h) All present and future accessions, appurtenances, components,
repairs, repair parts, spare parts, replacements, substitutions, additions,
issue and/or improvements to or of or with respect to any of the foregoing;

         (i) All other tangible and intangible personal property of such
Grantor;

         (j) All rights, remedies, powers and/or privileges of such Grantor with
respect to any of the foregoing; and

         () Any and all proceeds and products of the foregoing, including
without limitation, all money, accounts, general intangibles, deposit accounts,
documents, instruments, chattel paper, goods, insurance proceeds and any other
tangible or intangible property received upon the sale or disposition of any of
the foregoing.

                  "Communications Act" has the meaning given to that term in the
Credit Agreement.

                  "Copyright" means all:

(a) Copyrights, whether or not published or registered under the Copyright Act
of 1976, 17 U.S.C. Section 101 et seq., as the same shall be amended from time
to time and any predecessor or successor statute thereto (the "Copyright Act"),
and applications for registration of copyrights, and all works of authorship and
other intellectual property rights therein, including without limitation,
copyrights for computer programs, source code and object code databases and
related materials and documentation, and (i) all renewals, revisions, derivative
works,

                                      -3-
<PAGE>

enhancements, modifications, updates, new releases and other revisions thereof,
(ii) all income, royalties, damages and payments now and hereafter due and/or
payable with respect thereto, including without limitation, payments under all
licenses entered into in connection therewith and damages and payments for past
or future infringements thereof, (iii) the right to sue for past, present and
future infringemens thereof and (iv) all of such Grantor's rights corresponding
thereto throughout the world;

         (b) Rights under or interests in any copyright license agreements with
any other party, whether Grantors are a licensee or licensor under any such
license agreement and the right to use the foregoing in connnection with the
enforcement of the Bank's rights under the Operative Documents; and

         (c) Copyrightable materials now or hereafter owned by such Grantor,
including without limitation, all tangible property embodying the copyright
described in clause (a) hereof or such copyrightable materials, and all tangible
property covered by the licenses described in clause (b) hereof.

                  "Disclosure Schedule"has the meaning given to that term in the
Credit Agreement.

                  "FCC" has the meaning given to that term in the Credit
Agreement.

                  "FCC License" has the meaning given to that term in the Credit
Agreement.

                  "FCC Rules" has the meaning given to that term in the Credit
Agreement.

                  "Governmental Authority" has the meaning given to that term in
the Credit Agreement.

                  "Guaranty" has the meaning given to that term in the Credit
Agreement.

                  "Issuer Acknowledgement" has the meaning given to that term in
Section 3(b) of this Agreement.

                  "Liens" has the meaning given to that term in the Credit
Agreement.

                  "Limited Liability Company Interests" means the entire limited
liability company interest at any time owned by the Grantors in any Pledged
Entity.

                  "Loans" has the meaning given to that term in the Credit
Agreement.

                  "Marks" means all (a) trademarks, trademark registrations,
interest under trademark license agreements, trade names, trademark
applications, service marks, business names, trade styles, designs, logos and
other source or business identifiers for which registrations have been issued or
applied for in the United States Patent and Trademark Office or in any other
office or with any other official anywhere in the world or which are used in the
United States or

                                      -4-
<PAGE>

any state, territory or possession thereof, or in any other place, nation or
jurisdicion anywhere in the world, (b) licenses pertaining to any such mark
whether such Grantor is licensor or licensee, (c) all income, royalties, damages
and payments for past, present or future infringements thereof, (d) rights to
sue for past, present and future infringements thereof, (e) rights corresponding
thereto throughout the world, (f) all product specification documents and
production and quality control manuals used in the manufacture of products sold
under or in connection with such marks, (g) all documents that reveal the name
and address of all sources of supply of, and all terms of purchase and delivery
for, all materials and components used in the production of products sold under
or in connection with such marks, (h) all documents constituting or concerning
the then current or proposed advertising and promotion by such Grantor, their
subsidiaries or licensees of products sold under or in connection with such
marks, including without limitation, all documents that reveal the media used or
to be used and the cost for all such advertising conducted within the described
period or planned for such products and (i) renewals and proceeds of any of the
foregoing.

                  "Material Adverse Effect" has the meaning given to that term
in the Credit Agreement.

                  "Obligations" has the meaning given to that term in the Credit
Agreement.

                  "Operative Documents" has the meaning given to that term in
the Credit Agreement.

                  "Other Authorization" has the meaning given to that term in
the Credit Agreement.

                  "Patents" means all (a) letters patent, design patents,
utility patents, inventions and trade secrets, all patents and patent
applications in the United States Patent and Trademark Office, and interests
under patent license agreements, including without limitation, the inventions
and improvements described and claimed therein, (b) licenses pertaining to any
patent whether such Grantor is licensor or licensee, (c) income, royalties,
damges and payments now and hereafter due and /or payable under and with respect
thereto, including without limitation, damages and payments for past, present or
future infringements, (d) rights to sue for past, present and future
infringements thereof, (e) rights corresponding thereto throughout the world in
all jurisdictions in which such patents have been issud or applied for and (f)
the reissues, divisions, continuations, renewals, extensions and
continuations-in-part of any of the foregoing.

                  "Permitted Liens" has the meaning given to that term in the
Credit Agreement.

                  "Person" has the meaning given to that term in the Credit
Agreement.

                  "Partnership Interests" means the entire partnership interest
at any time owned by the Grantors in any Pledged Partnership Entity.

                                      -5-
<PAGE>

                  "Pledge Notice" shall have the meaning ascribed to it in
Section 3(b) of this Agreement.

                  "Pledged Collateral" means the Certificates, the Pledged
Securities, the Pledged Partnership Interests and the Pledged Limited Liability
Company Interests.

                  "Pledged Entity" means each limited liability company set
forth in Schedule 1 attached hereto, together with any other limited liability
company in which any Grantor may have an interest at any time.

                  "Pledged Limited Liability Company Interests" means all
limited liability company interests held by each Grantor, including, but not
limited to those limited liability company interests set forth in Schedule 1
attached hereto, as such Schedule may be supplemented from time to time in
accordance with the terms of this Agreement and all capital, limited liability
company assets, dividends, cash, instruments and other properties from time to
time received, to be received or otherwise distributed in respect of or in
exchange for any or all of such interests and all certificates and instruments
representing or evidencing such other property received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof.

                  "Pledged Partnership Entity" means each partnership interest
set forth in Schedule 1 attached hereto, together with any other partnership
interest in which any Grantor may have an interest at any time.

                  "Pledged Partnership Interests" means all interests in any
partnership or joint venture held by each Grantor, including, but not limited to
those partnership interests set forth in Schedule 1 attached hereto, as such
Schedule may be supplemented from time to time in accordance with the terms of
this Agreement, and all dividends, cash, instruments and other properties from
time to time received, to be received or otherwise distributed in respect of or
in exchange for any or all of such interests.

                  "Pledged Securities" means all shares of capital stock of each
issuer in which each Grantor has an interest, including, but not limited to
those shares of capital stock set forth in Schedule 1 attached hereto, as such
Schedule may be supplemented from time to time in accordance with the terms of
this Agreement, and all dividends, cash, instruments and other properties from
time to time received, to be received or otherwise distributed in respect of or
in exchange for any or all of such shares.

                  "Term" has the meaning given to that term in the Credit
Agreement.

         2. Creation of Security Interest. Each Grantor, in order to secure the
Obligations, does hereby grant and pledge to Bank to the extent permitted by law
a security interest in and to, all right, title and interest of such Grantor in
and to all presently existing and hereafter acquired Collateral. The security
interest and pledge created by this Section 2 shall continue in effect so long
as any Obligation remains outstanding or Bank has any obligation to make Loans
under the

                                      -6-
<PAGE>

Credit Agreement. Notwithstanding the foregoing provisions of this Section 2,
such grant of a security interest shall not extend to, and the term "Collateral"
shall not include, any general intangibles of the Grantors to the extent that
(but only to the extent that) (i) such general intangibles are not assignable or
capable of being encumbered as a matter of law or under the terms of the license
or other agreement applicable thereto (but solely to the extent that any such
restriction shall be enforceable under applicable law), without the consent of
the licensor thereof or other applicable party thereto and (ii) such consent has
not been obtained; provided, however, that the foregoing grant of a security
interest shall extend to, and the term "Collateral" shall include, (A) any
general intangible which is in the nature of an account receivable or a right to
the payment of money or a proceed of, or otherwise related to the enforcement or
collection of, any account receivable or right to the payment of money, or goods
which are the subject of any account receivable or right to the payment of
money, (B) any and all proceeds of any general intangibles which are otherwise
excluded to the extent that the assignment or encumbrance of such proceeds is
not so restricted, and (C) upon obtaining the consent of any such licensor or
other applicable party's consent with respect to any such otherwise excluded
general intangibles, such general intangibles as well as any and all proceeds
thereof that might have theretofor have been excluded from such grant of a
security interest and the term "Collateral".

         3. Delivery of Pledged Collateral.

         (a) With respect to each Certificate on (i) the Closing Date and (ii)
the day on which such Certificate shall be received or acquired by a Grantor
(with respect to any Certificate received or acquired after the Closing Date
that is not delivered to Senior Lender), and (iii) the day on which any such
Certificate is delivered to Senior Lender, Grantor shall deliver to Bank a
letter, countersigned by Senior Lender, in the form set forth in Exhibit A-1A
attached hereto (the "Pledge Letter") or, if Senior Lender does not have
possession of such Certificates, Grantor shall deliver to Bank the Certificates,
accompanied by instruments of transfer in blank, in form and substance
reasonably satisfactory to Bank.

         (b) With respect to each uncertificated Limited Liability Company
Interest and each uncertificated Partnership Interest, on (i) the Closing Date
(with respect to such Limited Liability Company Interests and such Partnership
Interests existing on such date) and (ii) the day on which any such Limited
Liability Company Interest and any such Partnership Interest shall be acquired
by a Grantor (with respect to such Limited Liability Company Interests and such
Partnership Interests acquired after the Closing Date), a notice in the form set
forth in Exhibit A-1 attached hereto (the "Pledge Notice") shall be
appropriately completed and delivered to each Pledged Entity and each Pledged
Partnership Entity, notifying each Pledged Entity and each Pledged Partnership
Entity of the existence of this Agreement, a certified copy of this Agreement
shall be delivered by the Grantor to the relevant Pledged Entity and relevant
Pledged Partnership Entity, and such Grantor shall have received and delivered
to Bank a copy of such Pledge Notice, along with an acknowledgment in the form
set forth in Exhibit A-2 attached hereto (the "Issuer Acknowledgment"), duly
executed by the relevant Pledged Entity.

                                      -7-
<PAGE>

         (c) Subject to receipt of any and all necessary prior approvals
required under the Communications Act and the FCC Rules, Bank shall have the
right, upon the occurrence and during the continuance of an Event of Default,
without notice to any of the Grantors, in connection with a commercially
reasonable foreclosure sale, to transfer to, or to direct the applicable Grantor
or any nominee of such Grantor to register or cause to be registered in the name
of, Bank or any of its nominees any or all of the Pledged Securities, Pledged
Partnership Interests or Pledged Limited Liability Company Interests. In
addition, Bank shall have the right at any time to exchange certificates or
instruments representing or evidencing Pledged Securities for certificates or
instruments of smaller or larger denominations.

         4. Further Assurances.

         (a) At any time and from time to time at the reasonable written request
of Bank, each Grantor shall execute and deliver to Bank, at such Grantor's
expense, all such financing statements and other instruments, certificates and
documents (including notices to financial institutions holding deposit accounts
of any Grantor as to the security interest granted hereby) in form and substance
reasonably satisfactory to Bank, and perform all such other acts as shall be
necessary or reasonably desirable to fully perfect or protect or maintain, when
filed, recorded, delivered or performed, Bank's security interests granted
pursuant to this Agreement or to enable Bank to exercise and enforce its rights
and remedies hereunder with respect to any Collateral. Without limiting the
generality of the foregoing, each Grantor shall: (i) at the request of the Bank,
mark conspicuously each document included in the Inventory and each other
contract relating to the Accounts, and all chattel paper, instruments and other
documents and each of its records pertaining to the Collateral with a legend, in
form and substance satisfactory to Bank, indicating that such document,
contract, chattel paper, instrument or Collateral is subject to the security
interest granted hereby, (ii) at the request of Bank, if any Account or contract
or other writing relating thereto shall be evidenced by a promissory note or
other instrument, deliver and pledge to the Bank, such note or other instrument
duly endorsed and accompanied by duly executed undated instruments of transfer
or assignment, all in form and substance reasonably satisfactory to the Bank;
(iii) execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be necessary or
desirable, or as Bank may reasonably request, in order to perfect and preserve,
with the required priority, the security interests granted, or purported to be
granted hereby, (iv) upon any Grantor's registration or application of any
copyright under the Copyright Act, execute and deliver immediately to Bank for
recordation and filing in the United States Copyright Office a Grant of Security
Interest, in the form of Exhibit B attached hereto, (v) upon any Grantor's
registration or application of any Patent or Mark, execute and deliver
immediately to Bank for recordation and filing in the United States Patent and
Trademark Office a Grant of Security Interest, in the form of Exhibit B attached
hereto, and (vi) with respect to any license or agreement in which any Grantor
now has or hereafter acquires an interest which by its terms prohibits
assignment, such Grantor will use its best efforts to procure the consent of the
counterpart party thereto.

         (b) At any time and from time to time, Bank shall be entitled to file
and/or record any or all such financing statements, instruments and documents
held by it, and any or all such

                                      -8-
<PAGE>

further financing statements, documents and instruments, relative to the
Collateral or any part thereof in each instance, and to take all such other
actions as Bank may reasonably deem appropriate to perfect and to maintain
perfected the security interests granted herein.

         (c) Each Grantor hereby authorizes Bank to file one or more financing
or continuation statements, and amendments thereto, relative to all or any part
of the Collateral without the signature of such Grantor where permitted by law.
A carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.

         (d) With respect to any Collateral consisting of securities,
instruments, partnership or joint venture interests, limited liability company
interests, or the like, each Grantor hereby consents and agrees that, upon the
occurrence and during the continuance of an Event of Default, subject to receipt
of any and all necessary prior approvals required under the Communications Act
and the FCC Rules, the issuers of, or obligors on, any such Collateral, or any
registrar or transfer agent or trustee for any such Collateral, shall be
entitled to accept the provisions of this Agreement as conclusive evidence of
the right of Bank to effect any transfer or exercise any right hereunder or with
respect to any such Collateral subject to the terms hereof, notwithstanding any
other notice or direction to the contrary heretofore or hereafter given by any
Grantor or any other Person to such issuers or such obligors or to any such
registrar or transfer agent or trustee.

         5. Voting Rights; Dividends; etc. Subject to receipt of any and all
necessary prior approvals required under the Communications Act and the FCC
Rules, so long as no Event of Default shall have occurred and be continuing:

         (a) Voting Rights. Each Grantor shall be entitled to exercise any and
all voting and other consensual rights pertaining to its Pledged Securities, its
Pledged Partnership Interests and its Pledged Limited Liability Company
Interests, or any part thereof, for any purpose not inconsistent with the terms
of this Agreement, the Credit Agreement or the other Operative Documents;
provided, however, that each Grantor shall not exercise, or shall refrain from
exercising, any such right if it would result in a Default.

         (b) Dividend and Distribution Rights. Subject to the terms of the
Credit Agreement, each Grantor shall be entitled to receive and to retain and
use any and all dividends or distributions paid in respect of its Pledged
Securities, its Pledged Partnership Interests or its Pledged Limited Liability
Company Interests; provided, however, that any and all:

             (i) non-cash dividends or distributions in the form of capital
stock, certificated limited liability company interests, instruments or other
property received, receivable or otherwise distributed in respect of, or in
exchange for, any Pledged Securities, Pledged Partnership Interests, Pledged
Limited Liability Company Interests,

             (ii) dividends and other distributions paid or payable in cash in
respect of any Pledged Securities, Pledged Partnership Interests or Pledged
Limited Liability Company

                                      -9-
<PAGE>

Interests in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in-surplus, and

             (iii) cash paid, payable or otherwise distributed in redemption of,
or in exchange for, any Pledged Securities, Pledged Partnership Interests or
Pledged Limited Liability Company Interests,

         shall, except as otherwise provided for in the Credit Agreement or the
other Operative Documents, forthwith be delivered to Bank, in the case of (i)
above, to be held as Collateral and shall, if received by such Grantor, be
received in trust for the benefit of Bank, be segregated from the other property
of such Grantor and forthwith be delivered to Bank as Collateral in the same
form as so received (with any necessary endorsements), and in the case of (ii)
and (iii) above, to be applied to the Obligations to the extent permitted by the
Credit Agreement or otherwise to be held as Collateral.

         6. Rights as to Pledged Collateral During Event of Default. When an
Event of Default has occurred and is continuing, subject to receipt of any and
all necessary prior approvals required under the Communications Act and the FCC
Rules:

         (a) Voting, Dividend and Distribution Rights. At the option of Bank,
all rights of each Grantor to exercise the voting and other consensual rights
which it would otherwise be entitled to exercise pursuant to Section 5(a) above,
and to receive the dividends and distributions which it would otherwise be
authorized to receive and retain pursuant to Section 5(b) above, shall cease,
and all such rights shall thereupon become vested in Bank who shall thereupon
have the sole right to exercise such voting and other consensual rights and to
receive and to hold as Pledged Collateral such dividends and distributions
during the continuance of such Event of Default.

         (b) Dividends and Distributions Held in Trust. All dividends and other
distributions which are received by any Grantor contrary to the provisions of
Section 6(a) of this Agreement shall be received in trust for the benefit of
Bank, shall be segregated from other funds of such Grantor and forthwith shall
be paid over to Bank as Collateral in the same form as so received (with any
necessary endorsements).

         7. Irrevocable Proxy. Except for the proxy granted to Senior Lender,
each Grantor hereby revokes all previous proxies with regard to its Pledged
Securities, its Pledged Partnership Interests and its Pledged Limited Liability
Company Interests and, subject to receipt of any and all necessary prior
approvals required under the Communications Act and the FCC Rules, appoints Bank
as its respective proxyholder to (a) attend and vote at any and all meetings of
the shareholders of the corporation(s) which issued the Pledged Securities, and
any adjournments thereof, held on or after the date of the giving of this proxy
and prior to the termination of this proxy and to execute any and all written
consents of shareholders of such corporation(s) executed on or after the date of
the giving of this proxy and prior to the termination of this proxy, with the
same effect as if such Grantor had personally attended the meetings or had
personally

                                      -10-
<PAGE>

voted its shares or had personally signed the written consents, waivers or
ratification, and (b) to attend and vote at any and all meetings of the members
of the Pledged Entities or partners of the Pledged Partnership Entities (whether
or not such Pledged Limited Liability Company Interests or Pledged Partnership
Interests are transferred into the name of Bank), and any adjournments thereof,
held on or after the date of the giving of this proxy and to execute any and all
written consents, waivers and ratifications of the Pledged Entities or Pledged
Partnership Entities executed on or after the date of the giving of this proxy
and prior to the termination of this proxy with the same effect as if such
Grantor had personally attended the meetings or had personally voted on their
respective Limited Liability Company Interests or Partnership Interests or had
personally signed the consents, waivers or ratifications; provided, however,
that Bank as proxyholder shall have rights hereunder only upon the occurrence
and during the continuance of an Event of Default and subject to Section 13(j)
hereof. Each Grantor hereby authorizes Bank to substitute another Person (which
Person shall be a successor to the rights of Bank hereunder, a nominee appointed
by Bank to serve as proxyholder, or otherwise as approved by such Grantor in
writing, such approval not to be unreasonably withheld) as the proxyholder and,
upon the occurrence or during the continuance of any Event of Default, hereby
authorizes and directs the proxyholder to file this proxy and the substitution
instrument with the secretary of the appropriate corporation. This proxy
is-coupled with an interest and is irrevocable until such time as no part of any
commitment to make Loans pursuant to the Credit Agreement remains outstanding
and all Obligations have been indefeasibly paid in full.

         8. The Grantors' Representations and Warranties. Each Grantor
represents and warrants as follows:

         (a) (i) The locations listed on the Schedule 2 constitute all locations
at which Collateral owned by such Grantor is located; (ii) the chief executive
office of such Grantor, where such Grantor keeps its records concerning the
Collateral, is located at the address set forth for such Grantor on Schedule 3;
and (iii) such Grantor has exclusive possession and control of the Collateral
owned by such Grantor.

         (b) Such Grantor currently conducts business only under its own name
and the trade names listed on Schedule 4. Neither such Grantor nor any corporate
predecessor has, during the preceding five years, been known as or used any
other corporate or fictitious name, except the names disclosed on Schedule 4.

         (c) Such Grantor is the legal and beneficial owner of the Collateral
free and clear of all Liens except for Permitted Liens and restrictions imposed
by the FCC Rules. Such Grantor has the power, authority and legal right to grant
the security interests in the Collateral purported to be granted hereby, and to
execute, deliver and perform this Agreement. The pledge of the Collateral
pursuant to this Agreement creates a valid first priority security interest in
the Collateral (except for any Permitted Liens).

         (d) Except as set forth on Schedule 1, the Pledged Securities described
on Schedule 1 attached hereto constitute (i) all of the shares of capital stock
of any Person owned by such

                                      -11-
<PAGE>

Grantor and (ii) that percentage of the issued and outstanding shares of the
respective issuers thereof indicated on Schedule 1 attached hereto, and there is
no other class of shares issued and outstanding of the respective issuers
thereof except as set forth on Schedule 1 attached hereto. Except as set forth
in Schedule 1, the Pledged Partnership Interests described on Schedule 1
attached hereto constitute all of the partnerships or joint ventures in which
each Grantor has an interest, and such Grantor's percentage interest in each
such partnership or joint venture is as set forth on such Schedule 1 attached
hereto. Except as set forth in Schedule 1, the Pledged Limited Liability Company
Interests described on Schedule 1 attached hereto constitute all of the Limited
Liability Company Interests of each Grantor and such Grantor's percentage
interest in each such Pledged Entity is as set forth on Schedule 1 attached
hereto.

         (e) No authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority (other than such authorizations,
approvals and other actions as have already been taken and are in full force and
effect) is required (A) for the pledge of the Collateral or the grant of the
security interest in the Collateral by any of the Grantors hereby or for the
execution, delivery or, subject to approvals described in Section 13(j)(ii)
hereof, performance of this Agreement by any of the Grantors, or (B) for the
exercise by Bank of the voting rights in the Pledged Securities, the Pledged
Partnership Interest or the Pledged Limited Liability Company Interests or of
any other rights or remedies in respect of the Collateral hereunder except (1)
as may be required in connection with any disposition of Collateral consisting
of securities by laws affecting the offering and sale of securities generally,
and (2) as may be required by the FCC Rules and the Comunications Act.

         9. Copyrights.

         (a) Royalties. Each Grantor hereby agrees that the use by Bank of the
Copyrights as authorized hereunder in connection with Bank's exercise of their
rights and remedies hereunder shall be without any liability for royalties or
other related charges from Bank to Grantors.

         (b) Restrictions on Future Agreements. Subject to the terms hereof and
of the Credit Agreement, each Grantor shall be permitted to manage, license and
administer its Copyrights in such manner as such Grantor in its reasonable
business judgment deems desirable, provided, however, that such Grantor will
not, without the Bank's prior written consent, such consent not to be
unreasonably withheld, (i) enter into any copyright license agreements except
license agreements entered into in the ordinary course of its business
consistent with past practices and containing such additional provisions to
protect Bank's interest hereunder as Bank may from time to time reasonably
request or (ii) take any action, or permit any action to be taken by others,
including, without limitation, licensees, or fail to take any action, which
would customarily be taken by a Person in the same business and in similar
circumstances as such Grantor, which could in any respect reasonably be expected
to have a Material Adverse Effect.

         (c) Duties of Grantors. Each Grantor shall have the duty to:

             (i) prosecute diligently any copyright application included in the
Copyrights,

                                      -12-
<PAGE>

             (ii) upon the occurrence and during the continuance of an Event of
Default, at the request of Bank, make application for registration of such
uncopyrighted but copyrightable material owned by such Grantor as Bank
reasonably deems appropriate if the failure to do so could reasonably be
expected to have a Material Adverse Effect,

             (iii) place notices of copyright on all copyrightable property
produced or owned by such Grantor embodying the Copyrights and use diligent
reasonable efforts to have its licensees do the same and

             (iv) take all reasonable action necessary in such Grantor's
reasonable business judgment consistent with past practices to preserve and
maintain all of Grantor's rights in the Copyrights that are or shall be
necessary in the operation of Grantor's business, including, without limitation,
making timely filings for renewals and extensions of registered Copyrights and
diligently monitoring unauthorized use thereof, unless the failure to do so
could not reasonably be expected to have a Material Adverse Effect. Any expenses
incurred in connection with the foregoing shall be borne by Grantors. Bank shall
have no duty with respect to the Copyrights other than to act lawfully and
without gross negligence or willful misconduct. Without limiting the generality
of the foregoing, Bank shall not be under any obligation to take any steps
necessary to preserve rights in the Copyrights against any other parties, but
Bank may do so at its option upon the occurrence and during the continuance of
an Event of Default, and all reasonable expenses incurred in connection
therewith shall be for the sole account of Grantors and shall be added to the
Obligations.

         10. Patents and Marks.

         (a) Royalties. Each Grantor hereby agrees that any rights granted
hereunder to Bank with respect to Patents and Marks shall be applicable to all
jurisdictions in which such Grantor has the right to use such Patents and Marks,
from time to time, and without any liability for royalties or other related
charges from Bank to Grantors.

         (b) Restrictions on Future Agreements. Each Grantor will not, without
Bank's prior written consent, such consent not to be unreasonably withheld,
abandon any Patent or Mark in which such Grantor now owns or hereafter acquires
any rights or interests if such abandonment could reasonably be expected to have
a Material Adverse Effect or enter into any agreement, including, without
limitation, any license agreement, which is inconsistent with such Grantor's
obligations under this Agreement, if such actions could reasonably be expected
to have a Material Adverse Effect. Each Grantor further agrees that it will not
take any action, or permit any action to be taken by others subject to its
control, including licensees, or fail to take any action which would customarily
be taken by a Person in the same business and in similar circumstances as such
Grantor, which could reasonably be expected to have a Material Adverse Effect.

         (c) Duties of Grantors. Each Grantor shall have the duty to

                                      -13-
<PAGE>

             (i) prosecute diligently any patent application or trademark
application pending as of the date hereof or thereafter until the Obligations
shall have been indefeasibly paid in full and Bank has no obligation to make any
Loans under the Credit Agreement,

             (ii) upon the occurrence and during the continuance of an Event of
Default, make application on unpatented but patentable inventions owned by such
Grantor and on Marks, as the case may be, as Bank reasonably deems appropriate,

             (iii) file and prosecute opposition and cancellation proceedings if
the failure to do so could reasonably be expected to have a Material Adverse
Effect and

             (iv) take all reasonable action necessary in such Grantor's
reasonable business judgment consistent with past practices to preserve and
maintain all rights in patent applications of the Patents and in applications
for registrations of the Marks unless the failure so to do could not reasonably
be expected to have a Material Adverse Effect. Any expenses incurred in
connection with such applications shall be borne by Grantors. Each Grantor shall
not abandon any right to file a Patent application or Mark application without
the consent of Bank (which consent shall not be unreasonably withhold) if such
abandonment could reasonably be expected to have a Material Adverse Effect. Each
Grantor shall give proper statutory notice in connection with its use of each of
the Marks to the extent necessary for the protection of each of the Marks.
Grantors shall notify the Bank of any suits it commences to enforce the Patents
and Marks and shall provide Bank with copies of any documents reasonably
requested by Bank relating to such suits.

         11. Grantors' Covenants. In addition to the other covenants and
agreements set forth herein and in the other Operative Documents, each Grantor
covenants and agrees as follows:

         (a) Such Grantor will pay, prior to delinquency, all taxes, charges,
Liens and assessments against the Collateral owned by it, except those with
respect to which the amount or validity is being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of such Grantor and except those which
could not reasonably be expected to have a Material Adverse Effect.

         (b) The Collateral will not be used in violation of any material law,
regulation or ordinance or any applicable laws (including without limitation,
all applicable regulations, rules and orders), nor used in any way that will
void or impair any insurance required to be carried in connection therewith.

         (c) Such Grantor will keep the Collateral in reasonably good repair,
working order and operating condition (normal wear and tear excluded), and from
time to time make all necessary and proper repairs, renewals, replacements,
additions and improvements thereto and, as appropriate and applicable, will
otherwise deal with the Collateral in all such ways as are considered customary
practice by owners of like property.

                                      -14-
<PAGE>

         (d) Such Grantor will take all reasonable steps to preserve and protect
the Collateral except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

         (e) Such Grantor will maintain all insurance coverage required pursuant
to Section 6.01 of the Credit Agreement.

         (f) Such Grantor will promptly notify Bank in writing in the event of
any material damage to the Collateral from any source whatsoever.

         (g) Such Grantor will not (i) establish any location of Collateral not
listed in Schedule 2, (ii) move its principal place of business, chief executive
offices or any other office listed in Schedule 3 or (iii) adopt, use or conduct
business under any trade name or other corporate or fictitious name not
disclosed in Schedule 4, except upon not less than 30 days prior written notice
to Bank and such Grantor's prior compliance with all applicable requirements of
Section 4 hereof necessary to perfect Bank's security interest hereunder.

         (h) Subject to the provisions of Section 15(j) hereof, such Grantor
agrees to take any action which Bank may reasonably request in order to obtain
from the FCC such approval as may be necessary to enable Bank to exercise and
enjoy the full rights and benefits granted to them by this Agreement, including
the use of such Grantor's best efforts to assist in obtaining the approval of
the FCC for any action or transaction contemplated by this Agreement or any
other Operative Document for which such approval is required by law.

         (i) Such Grantor shall cause all of its equipment constituting
Collateral to be operated and maintained in accordance with any applicable
manufacturer's manuals or instructions and the requirements of its insurance
policies. Such Grantor, at its expense, shall maintain such equipment in good
condition, reasonable wear and tear excepted, and will comply with all laws,
ordinances and regulations to which the use and operation of such equipment may
be or become subject. Such obligation shall extend to repair and replacement of
any partial loss or damage to such equipment, regardless of the cause. If
maintenance is mandated by the manufacturer, such Grantor shall obtain and keep
in effect at all times during the Term maintenance service contracts with the
vendor of such equipment or suppliers approved by Lessor, such approval not to
be unreasonably withheld. All parts furnished in connection with such
maintenance or repair shall immediately become part of such equipment. All such
maintenance, repair and replacement services shall be immediately paid for and
discharged by such Grantor with the result that no lien will attach to such
equipment. Only qualified personnel of such Grantor or qualified contract
personnel shall operate such equipment. Such equipment shall be used only for
the purposes for which it was designed. Upon prior written notice to Lessor,
such Grantor may make improvements, modifications or additions to such
equipment; provided, that if such improvements, modifications or additions are
not capable of being removed without causing material damage to such equipment,
then Lessor's prior written consent shall be required. Upon the return of such
equipment, such Grantor shall, at its expense, restore such equipment to the
original configuration in accordance with the manufacturer's

                                      -15-
<PAGE>

specifications; provided, that, with Lessor's prior written consent, such
Grantor may return such equipment as so improved, modified or added to.

         12. Bank's Rights Regarding Collateral. At any time and from time to
time, Bank may, to the extent necessary or desirable to protect the security
hereunder, but Bank shall not be obligated to: (a) (whether or not a Default has
occurred) itself or through its representatives, at its own expense, upon
reasonable notice and at such reasonable times during usual business hours,
visit and inspect any of the Grantors' properties and examine and make abstracts
from any of its books and records at any reasonable time and as often as may
reasonably be desired and discuss the business, operations, properties and
financial and other condition of any of the Grantors with officers of such
Grantors and with their accountants or (b) if an Event of Default has occurred
and is continuing, at the expense of the Grantors, perform any obligation of any
of the Grantors under this Agreement. At any time and from time to time, at the
expense of the Grantors, Bank may, to the extent necessary or desirable to
protect the security hereunder, but Bank shall not be obligated to: (i) notify
obligors of the Collateral that the Collateral has been pledged as security to
Bank; (ii) after an Event of Default has occurred and is continuing, at any time
and from time to time request from obligors of the Collateral, in the name of
the applicable Grantor or in the name of Bank, information concerning the
Collateral and the amounts owing thereon; and (iii) after an Event of Default
has occurred and is continuing, direct obligors under the contracts included in
the Collateral to direct their performance to Bank. Each Grantor shall keep
proper books and records and accounts in which full, true and correct entries in
conformity with GAAP and all applicable laws (including without limitation, all
applicable regulations, rules and orders) shall be made of all material dealings
and transactions pertaining to the Collateral. Bank shall at all reasonable
times on reasonable notice have full access to and the right to audit any and
all of Grantors' books and records pertaining to the Collateral, and to confirm
and verify the value of the Collateral. Bank shall not be under any duty or
obligation whatsoever to take any action to preserve any rights of or against
any prior or other parties in connection with the Collateral, to exercise any
voting rights or managerial rights with respect to any Collateral or to make or
give any presentments for payment, demands for performance, notices of
non-performance, protests, notices of protest, notices of dishonor or notices of
any other nature whatsoever in connection with the Collateral or the
Obligations. Bank shall not be under any duty or obligation whatsoever to take
any action to protect or preserve the Collateral or any rights of the Grantors'
therein, or to make collections or enforce payment thereon, or to participate in
any foreclosure or other proceeding in connection therewith. Nothing contained
herein or in any consent shall constitute an assumption by Bank of any of the
Grantors' obligations under the contracts assigned hereunder unless Bank shall
have given written notice to the counterpart to such assigned contract of Bank's
intention to assume such contract. Each Grantor shall continue to be liable for
performance of its obligations under such contracts.

         13. Collections on the Collateral. Except as provided to the contrary
in the Credit Agreement, each Grantor shall have the right to use and to
continue to make collections on and receive dividends and other proceeds of all
of the Collateral in the ordinary course of business so long as no Event of
Default shall have occurred and be continuing. Upon the occurrence and during
the continuance of an Event of Default, at the option of Bank, each Grantor's
right to make collections on and receive dividends and other proceeds of the
Collateral and to use or

                                      -16-
<PAGE>

dispose of such collections and proceeds shall terminate, and any and all
dividends, proceeds and collections, including all partial or total prepayments,
then held or thereafter received on or on account of the Collateral will be held
or received by such Grantor in trust for Bank and immediately delivered in kind
to Bank (duly endorsed to Bank, if required), to be applied to the obligations
or held as Collateral, as Bank shall elect. Upon the occurrence and during the
continuance of an Event of Default, Bank shall have the right at all times to
receive, receipt for, endorse, assign, deposit and deliver, in the name of any
of the Grantors, any and all checks, notes, drafts and other instruments for the
payment of money constituting proceeds of or otherwise relating to the
Collateral; and each Grantor hereby authorizes Bank to affix, by facsimile
signature or otherwise, the general or special endorsement of such Grantor, in
such manner as Bank shall deem advisable, to any such instrument in the event
the same has been delivered to or obtained by Bank without appropriate
endorsement, and Bank and any collecting bank are hereby authorized to consider
such endorsement to be a sufficient, valid and effective endorsement by such
Grantor, to the same extent as though it were manually executed by the duly
authorized representative of such Grantor, regardless of by whom or under what
circumstances or by what authority such endorsement actually is affixed, without
duty of inquiry or responsibility as to such matters, and such Grantor hereby
expressly waives demand, presentment, protest and notice of protest or dishonor
and all other notices of every kind and nature with respect to any such
instrument.

         14. Possession of Collateral by Bank. All the Collateral now,
heretofore or hereafter delivered to Bank shall be held by Bank in its
possession, custody and control. Upon the occurrence and during the continuance
of an Event of Default, whenever any of the Collateral is in Bank's possession,
custody or control, Bank may use, operate and consume the Collateral, whether
for the purpose of preserving and/or protecting the Collateral, or for the
purpose of performing any of the Grantors' obligations with respect thereto, or
otherwise so long as consistent with the Operative Documents or transactions
contemplated thereby. Bank may at any time deliver or redeliver the Collateral
or any part thereof to the Grantors, and the receipt of any of the same by the
Grantors shall be complete and full acquittance for the Collateral so delivered,
and Bank thereafter shall be discharged from any liability or responsibility
arising after such delivery to the Grantors. So long as Bank exercises
reasonable care and complies with Section 9207 of the UCC with respect to any
Collateral in its possession, custody or control, Bank shall have no liability
for any loss of or damage to any Collateral, and in no event shall Bank have
liability for any diminution in value of Collateral occasioned by economic or
market conditions or events.

         15. Remedies. Provided that nothing contained in this Agreement shall
be construed to give Bank or any purchaser of the Collateral the right to
operate or control any aspect of the business of any of the Grantors that
requires an FCC License without the prior consent of the FCC, to the extent
required by law or the terms of any FCC License or the FCC Rules:

         (a) Rights Upon Event of Default. Upon the occurrence and during the
continuance of an Event of Default, the Grantors shall be in default hereunder
and, subject to applicable law, Bank shall have, in any jurisdiction where
enforcement is sought, in addition to all other rights
and remedies that Bank

                                      -17-
<PAGE>

may have under this Agreement and under applicable laws or in equity, all rights
and remedies of a secured party under the Uniform Commercial Code as enacted in
any such jurisdiction in effect at that time, and in addition the following
rights and remedies, all of which may be exercised with or without further
notice to the Grantors except such notice as may be specifically required by
applicable law: (i) to foreclose the Liens and security interests created
hereunder or under any other Operative Document by any available judicial
procedure or without judicial process; (ii) to enter any premises where any
Collateral may be located for the purpose of securing, protecting, inventorying,
appraising, inspecting, repairing, preserving, storing, preparing, processing,
taking possession of or removing the same; (iii) to sell, assign, lease or
otherwise dispose of any Collateral or any part thereof, either at public or
private sale or at any broker's board, in lot or in bulk, for cash, on credit or
otherwise, with or without representations or warranties and upon such terms as
shall be commercially reasonable; (iv) to notify obligors on the Collateral that
the Collateral has been assigned to Bank and that all payments thereon, or
performance with respect thereto, are to be made directly and exclusively to
Bank; (v) to collect by legal proceedings or otherwise all dividends,
distributions, interest, principal or other sums now or hereafter payable upon
or on account of the Collateral; (vi) to enter into any extension,
reorganization, disposition, merger or consolidation agreement, or any other
agreement relating to or affecting the Collateral, and in connection therewith
Bank may deposit or surrender control of the Collateral and/or accept other
property in exchange for the Collateral as Bank reasonably deems appropriate and
is commercially reasonable; (vii) to settle, compromise or release, on terms
acceptable to Bank, in whole or in part, any amounts owing on the Collateral
and/or any disputes with respect thereto; (viii) to extend the time of payment,
make allowances and adjustments and issue credits in connection with the
Collateral in the name of the applicable Grantor for the benefit of Bank; (ix)
to enforce payment and prosecute any action or proceeding with respect to any or
all of the Collateral and take or bring, on behalf of itself or in the name of
the applicable Grantor, any and all steps, actions, suits or proceedings deemed
necessary or reasonably desirable by Bank to effect collection of or to realize
upon the Collateral, including any judicial or nonjudicial foreclosure thereof
or thereon, and each Grantor specifically consents to any nonjudicial
foreclosure of any or all of the Collateral or any other action taken by Bank
which may release any obligor from personal liability on any of the Collateral,
and each Grantor waives, to the extent permitted by applicable law, any right to
receive notice of any public or private judicial or nonjudicial sale or
foreclosure of any security or any of the Collateral, and any money or other
property received by Bank in exchange for or on account of the Collateral,
whether representing collections or proceeds of Collateral, and whether
resulting from voluntary payments or foreclosure proceedings or other legal
action taken by Bank or any of the Grantors, may be applied by Bank, without
notice to the Grantors, to the Obligations in such order and manner as Bank in
their sole discretion shall determine; (x) to insure, protect and preserve the
Collateral; (xi) to exercise all rights, remedies, powers or privileges provided
under any of the Operative Documents; and (xii) to remove, from any premises
where the same may be located, the Collateral and any and all documents,
instruments, files and records, and any receptacles and cabinets containing the
same, relating to the Collateral, and Bank may, at the cost and expense of the
Grantors, use such of its supplies, equipment, facilities and space at its
places of business as may be necessary or appropriate to properly administer,
process, store, control, prepare for sale or disposition and/or sell or dispose
of the Collateral or to properly administer and control the handling of
collections and realizations thereon, and Bank shall be deemed to have a
rent-free

                                      -18-
<PAGE>

tenancy of any premises of the Grantors for such purposes and for such
periods of time as reasonably required by Bank. So long as an Event of Default
has occurred and is continuing, each Grantor will, at Bank's request, assemble
the Collateral and make it available to Bank at places which Bank may designate,
whether at the premises of such Grantor or elsewhere, and will make available to
Bank, free of cost, all premises, equipment and facilities of such Grantor for
the purpose of Bank's taking possession of the Collateral or storing the same or
removing or putting the Collateral in salable form or selling or disposing of
the same.

         (b) Possession by Bank. Upon the occurrence and during the continuance
of an Event of Default, Bank also shall have the right, without notice or
demand, either in person, by Bank or by a receiver to be appointed by a court in
accordance with the provisions of applicable law (and each Grantor hereby
expressly consents, to the fullest extent permitted by applicable law, upon the
occurrence and during the continuance of an Event of Default to the appointment
of such a receiver), and, to the extent permitted by applicable law, without
regard to the adequacy of any security for the Obligations, to take possession
of the Collateral or any part thereof and to collect and receive the rents,
issues, profits, income and proceeds thereof. The taking possession of the
Collateral by Bank shall not cure or waive any Event of Default or notice
thereof or invalidate any act done pursuant to such notice. The rights, remedies
and powers of any receiver appointed by a court shall be as ordered by said
court.

         (c) Sale of Collateral. Any public or private sale or other disposition
of the Collateral may be held at any office of Bank, or at the Grantors' places
of business, or at any other place permitted by applicable law, and without the
necessity of the Collateral being within the view of prospective purchasers.
Bank may direct the order and manner of sale of the Collateral, or portions
thereof, as it in its sole and absolute discretion may determine provided such
sale is commercially reasonable, and each Grantor expressly waives, to the
extent permitted by applicable law, any right to direct the order and manner of
sale of any Collateral. Bank or any Person acting on Bank's behalf may bid and
purchase at any such sale or other disposition. In furtherance of Bank's rights
hereunder, each Grantor hereby grants to Bank an irrevocable, non-exclusive
license (exercisable without royalty or other payment by Bank) to use, license
or sublicense any patent, trademark, trade name, copyright or other intellectual
property in which Grantor now or hereafter has any right, title or interest
together with the right of access to all media in which any of the foregoing may
be recorded or stored; provided, however, that such license shall only be
exercisable in connection with the disposition of Collateral upon Bank's
exercise of its remedies hereunder.

         (d) Notice of Sale. Unless the Collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market, Bank will give the Grantors reasonable notice of the time and place of
any public sale thereof or of the time on or after which any private sale
thereof is to be made. The requirement of reasonable notice conclusively shall
be met if: (i) such notice is mailed, certified mail, postage prepaid, to the
Grantors at their addresses set forth on the signature page hereto or delivered
or otherwise sent to the Grantors, at least five (5) Business Days before the
date of the sale or (ii) if Grantors have previously executed any applications
for consent to the assignment of any FCC Licenses or for consent to the transfer
of control of any holder of such licenses. Each Grantor expressly waives, to the

                                      -19-
<PAGE>

fullest extent permitted by applicable law, any right to receive notice of any
public or private sale of any Collateral or other security for the Obligations
except as expressly provided for in this paragraph. Bank shall not be obligated
to make any sale of the Collateral if it shall determine not to do so regardless
of the fact that notice of sale of the Collateral may have been given. Bank may,
without notice or publication, except as required by applicable law, adjourn the
sale from time to time by announcement at the time and place fixed for sale, and
such sale may, without further notice (except as required by applicable law), be
made at the time and place to which the same was so adjourned.

         (e) Private Sales. With respect to any Collateral consisting of
securities, partnership interests, limited liability company interests, joint
venture interests or the like, and whether or not any of such Collateral has
been effectively registered under the Securities Act of 1933, as amended, or
other applicable laws, Bank may, in its sole and absolute discretion, sell all
or any part of such Collateral at private sale in such manner and under such
circumstances as Bank may deem necessary or advisable in order that the sale may
be lawfully conducted in a commercially reasonable manner. Without limiting the
foregoing, Bank may (i) approach and negotiate with a limited number of
potential purchasers, and (ii) restrict the prospective bidders or purchasers to
persons who will represent and agree that they are purchasing such Collateral
for their own account for investment and not with a view to the distribution or
resale thereof. In the event that any such Collateral is sold at private sale,
each Grantor agrees to the extent permitted by applicable law that if such
Collateral is sold for a price which is commercially reasonable, then (A) the
Grantors shall not be entitled to a credit against the Obligations in an amount
in excess of the purchase price, and (B) Bank shall not incur any liability or
responsibility to the Grantors in connection therewith, notwithstanding the
possibility that a substantially higher price might have been realized at a
public sale. Each Grantor recognizes that a ready market may not exist for such
Collateral if it is not regularly traded on a recognized securities exchange,
and that a sale by Bank of any such Collateral for an amount substantially less
than a pro rata share of the fair market value of the issuer's assets minus
liabilities may be commercially reasonable in view of the difficulties that may
be encountered in attempting to sell a large amount of such Collateral or
Collateral that is privately traded.

         (f) Title of Purchasers. Upon consummation of any sale of Collateral
hereunder, Bank shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each such purchaser at
any such sale shall hold the Collateral so sold absolutely free from any claim
or right upon the part of any Grantor or any other Person claiming through any
Grantor, and each Grantor hereby waives (to the extent permitted by applicable
laws) all rights of redemption, stay and appraisal which it now has or may at
any time in the future have under any rule of law or statute now existing or
hereafter enacted. If the sale of all or any part of the Collateral is made on
credit or for future delivery, Bank shall not be required to apply any portion
of the sale price to the Obligations until such amount actually is received by
Bank, and any Collateral so sold may be retained by Bank until the sale price is
paid in full by the purchaser or purchasers thereof. Bank shall not incur any
liability in case any such purchaser or purchasers shall fail to pay for the
Collateral so sold, and, in case of any such failure, the Collateral may be sold
again.

                                      -20-
<PAGE>

         (g) Disposition of Proceeds of Sale. The proceeds resulting from the
collection, liquidation, sale or other disposition of the Collateral shall be
applied, first, to the reasonable costs and expenses (including reasonable
attorneys' fees) of retaking, holding, storing, processing and preparing for
sale, selling, collecting and liquidating the Collateral, and the like; second,
to the satisfaction of all Obligations; and third, any surplus remaining after
the satisfaction of all Obligations, to be paid over to the Grantors or to
whomsoever may be lawfully entitled to receive such surplus.

         (h) Certain Waivers. To the extent permitted by applicable law, each
Grantor waives all claims, damages and demands against Bank arising out of the
repossession, retention or sale of the Collateral, or any part or parts thereof,
except to the extent any such claims, damages and awards arise out of the gross
negligence or willful misconduct of Bank.

         (i) Remedies Cumulative. The rights and remedies provided under this
Agreement are cumulative and may be exercised singly or concurrently, and are
not exclusive of any other rights and remedies provided by law or equity.

         (j) Compliance with Communications Act and FCC Rules and Regulations.

             (i) Notwithstanding any other provision of this Agreement, any
foreclosure on, sale, transfer or other disposition of, or the exercise of any
right to vote or consent with respect to, any of the Collateral as provided
herein or any other action taken or proposed to be taken by Bank hereunder which
would affect the operational, voting or other control of any entity holding an
FCC License shall be made in accordance with the Communications Act, the terms
of each FCC License, and any applicable FCC Rules, including any requirement
that there be a public or private sale.

             (ii) If an Event of Default shall have occurred and be continuing,
each Grantor shall take any action which Bank may request in the exercise of its
rights and remedies under this Agreement, including, but not limited to, the
execution and delivery of any documents requested by Bank, in order to transfer
and assign to Bank or to one or more third parties as Bank may designate,
including, but not limited to, a receiver or trustee or to a combination of the
foregoing, the Collateral for the purposes of a public or private sale. Upon the
occurrence and during the continuance of an Event of Default, each Grantor shall
further use its best efforts to assist in obtaining the approval of the FCC (and
that required by any other Governmental Authority) for any action or transaction
contemplated by this Agreement, including without limitation, the preparation,
execution and filing with the FCC of the assignor's or transferor's portion of
any application or applications for consent to the assignment of any FCC License
or transfer of control of any entity holding or controlling any FCC License as
may be necessary or appropriate under the FCC Rules. Each Grantor further agrees
that, because of the unique nature of its undertaking in this Section 13(j), the
same may be specifically enforced, and it hereby waives, and agrees to waive,
any claim or defense that Bank would have an adequate remedy at law for the
breach of this undertaking and any requirement for the posting of bond or other
security. Each Grantor hereby agrees that in the event that such Grantor has
been given five Business

                                      -21-
<PAGE>

Days' prior written notice telecopied to its telecopier number set forth on the
signature page hereto and such Grantor has not responded by executing any such
applications or other instruments, the clerk of the court of any court of
competent jurisdiction may execute in the place of such Grantor any application
or other instrument necessary or appropriate for the obtaining of such consent.
This Section 13(j) shall not be deemed to limit any other rights of Bank
available under applicable law and consistent with the Communications Act and
the applicable FCC Rules.

         16. Notice. Bank shall use reasonable efforts to give the Grantors
prior written notice of the exercise of any remedy provided for herein, provided
that the failure to give such notice shall not subject Bank to liability and
shall not affect the validity or exercise of any remedy hereunder.

         17. Bank Appointed Attorney-in-Fact. To the full extent permitted by
applicable law, including the Communications Act and FCC Rules, each Grantor
hereby irrevocably appoints Bank as such Grantor's attorney-in-fact, with full
authority in the place and stead of such Grantor, and in the name of such
Grantor, or otherwise, from time to time, in Bank's sole and absolute discretion
to do any of the following acts or things upon the occurrence and during the
continuance of an Event of Default: (a) to do all acts and things and to execute
all documents necessary or advisable to perfect and continue perfected the
security interests created by this Agreement and to preserve, maintain and
protect the Collateral; (b) to do any and every act which such Grantor is
obligated to do under this Agreement; (c) to prepare, sign, file and record, in
such Grantor's name, any financing statement covering the Collateral; (d) to
endorse and transfer the Collateral upon foreclosure by Bank; and (e) to file
any claims or take any action or institute any proceedings which Bank may
reasonably deem necessary or desirable for the protection or enforcement of any
of the rights of Bank with respect to any of the Collateral; provided, however,
that Bank shall be under no obligation whatsoever to take any of the foregoing
actions, and Bank shall have no liability or responsibility for any act or
omission (other than Bank's own gross negligence or willful misconduct) taken
with respect thereto.

         18. Costs and Expenses. Each Grantor shall pay on demand (i) all
reasonable fees and expenses, including reasonable attorneys' fees and expenses,
incurred by Bank in connection with the preparation, execution and delivery of,
and the exercise of its duties under, this Agreement (not to exceed $50,000),
(ii) all reasonable fees and expenses, including reasonable attorneys' fees and
expenses, incurred by Bank in connection with the preparation, execution and
delivery of amendments and waivers hereunder and (iii) all reasonable fees and
expenses, including reasonable attorneys' fees and expenses, incurred by Bank in
connection with the enforcement or attempted enforcement of this Agreement or
any of the Obligations or in preserving any of Bank's rights and remedies
(including, without limitation, all such fees and expenses incurred in
connection with any "workout" or restructuring affecting the Operative Documents
or the Obligations or any bankruptcy or similar proceeding involving such
Grantor, any other Grantor, Borrower or any of their Affiliates).

                                      -22-
<PAGE>

         19. Transfers and Other Liens. Each Grantor agrees that, except as
specifically permitted under the Credit Agreement or any other Operative
Document, it will not (a) sell, assign, exchange, transfer or otherwise dispose
of, or contract to sell, assign, exchange, transfer or otherwise dispose of, or
grant any option with respect to, any of the Collateral, or (b) create or permit
to exist any Lien upon or with respect to any of the Collateral, except for
legally permissible Liens in favor of Bank or otherwise permitted under the
Credit Agreement or any other Operative Document.

         20. Other Agreements; Governing Agreement. Nothing herein shall in any
way modify or limit the effect of terms or conditions set forth in any other
Operative Document executed by the Grantors or any other Person in connection
with the Obligations, but each and every term and condition hereof shall be in
addition thereto; provided, however, that in the event of inconsistency between
this Agreement and the Credit Agreement, the Credit Agreement shall govern.

         21. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement.

         22. Understandings With Respect to Waivers and Consents. Each Grantor
warrants and agrees that each of the waivers and consents set forth herein are
made with full knowledge of their significance and consequences, with the
understanding that events giving rise to any defense or right waived may
diminish, destroy or otherwise adversely affect rights which such Grantor
otherwise may have against Bank or others, or against any Collateral. If any of
the waivers or consents herein are determined to be unenforceable under
applicable law, such waivers and consents shall be effective to the maximum
extent permitted by law.

         23. Indemnity. Each Grantor shall indemnify, reimburse and hold Bank,
each of Bank's members, and each of their respective successors, assigns,
agents, officers, directors, shareholders, servants, agents and employees
harmless from and against all liabilities, losses, damages, actions, suits,
demands, claims of any kind and nature (including claims relating to
environmental discharge, cleanup or compliance), all costs and expenses
whatsoever to the extent they may be incurred or suffered by such indemnified
party in connection therewith (including reasonable attorneys' fees and
expenses), fines, penalties (and other charges of applicable governmental
authorities), licensing fees relating to any item of Collateral, damage to or
loss of use of property (including consequential or special damages to third
parties or damages to Borrower's property), or bodily injury to or death of any
person (including any agent or employee of Borrower) (each, a "Claim"), directly
or indirectly relating to or arising out of the use of the proceeds of the Loan,
the falsity of any representation or warranty of such Grantor or such Grantor's
failure to comply with the terms of this Agreement or any other Operative
Document during the Term. The foregoing indemnity shall cover, without
limitation, (i) any Claim in connection with a design or other defect (latent or
patent) in any item of equipment included in the Collateral, (ii) any Claim for
infringement of any patent, copyright, trademark or other intellectual property
right, (iii) any Claim resulting from the presence on or under or

                                      -23-
<PAGE>

the escape, seepage, leakage, spillage, discharge, emission or release of any
Hazardous Materials on the premises of such Grantor, including any Claims
asserted or arising under any Environmental Law, or (iv) any Claim for
negligence or strict or absolute liability in tort; provided, however, that such
Grantor shall not indemnify Bank for any liability incurred by Bank as a result
of Bank's gross negligence or willful misconduct. Such indemnities shall
continue in full force and effect, notwithstanding the expiration or termination
of this Agreement. Upon an indemnitee's written demand, such Grantor shall
assume and diligently conduct, at its sole cost and expense, the entire defense
of Bank, each of its members, and each of their respective agents, employees,
directors, officers, shareholders, successors and assigns, using counsel
reasonably acceptable to such indemnitee against any indemnified Claim. Such
Grantor shall not settle or compromise any Claim against or involving Bank
without first obtaining Bank's written consent thereto, which consent shall not
be unreasonably withheld. If Bank elects to assume its own defense in connection
with an indemnified Claim, then Bank shall not settle or compromise such Claim
without first obtaining such Grantor's written consent thereto, which consent
shall not be unreasonably withheld, provided that if such Grantor does not
consent thereto, then Borrower shall post security or a bond in the amount of
such Claim for the benefit of the Bank.

         24. Amendments, Etc. No amendment or waiver of any provision of this
Agreement nor consent to any departure by the Grantors herefrom (other than
supplements to the Schedules hereto in accordance with the terms of this
Agreement) shall in any event be effective unless the same shall be in writing
and made in accordance with of the Credit Agreement, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

         25. Notices. All notices and other communications provided for
hereunder shall be given in the manner and to the addresses set forth either in
the Credit Agreement or in the Guaranty dated as of even date herewith made by
the Grantors.

         26. Continuing Security Interest: Transfer of Notes; Termination. This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until indefeasible payment in full of
the Obligations and the termination or expiration of Bank's obligation to make
Loans under the Credit Agreement, (ii) be binding upon each Grantor, their
successors and assigns and (iii) inure, together with the rights and remedies of
Bank hereunder, to the benefit of Bank and any successor Bank, subject to the
terms and conditions of the Credit Agreement. Subject to the terms of the Credit
Agreement, any Bank may assign or otherwise transfer any Loan, or any rights in
Collateral held by it to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to such Bank or
Bank herein or otherwise. Nothing set forth herein or in any other Operative
Document is intended or shall be construed to give to any other party any right,
remedy or claim under, to or in respect of this Agreement or any other Operative
Document or any Collateral. The Grantors' successors and assigns shall include,
without limitation, a receiver, trustee or debtor-in-possession thereof or
therefor, provided that, except as otherwise permitted under the Credit
Agreement or any other Operative Document, none of the rights or

                                      -24-
<PAGE>

obligations of the Grantors hereunder may be assigned or otherwise transferred
without the prior written consent of Bank.

         27. Release of the Grantors. This Agreement and all obligations of each
Grantor hereunder and all security interests granted hereby shall be released
and terminated when all Obligations have been paid in full in cash and when
Bank's obligation to make Loans under the Credit Agreement has expired or have
otherwise been terminated. Upon such release and termination of all Obligations
and the security interest hereunder, all rights in and to the Collateral granted
or pledged by the Grantors hereunder shall automatically revert to the Grantors,
and Bank shall return any pledged Collateral in their possession to the
Grantors, or to the Person or Persons legally entitled thereto, and shall
endorse, execute, deliver, record and file all instruments and documents, and do
all other acts and things, reasonably required for the return of the Collateral
to the Grantors, or to the Person or Persons legally entitled thereto, and to
evidence or document the release of the interests of Bank arising under this
Agreement, all as reasonably requested by, and at the sole expense of, the
Grantors.

         28. Governing Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS OTHERWISE REQUIRED
BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED
BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF CALIFORNIA ARE GOVERNED BY
THE LAWS OF SUCH JURISDICTION.

         29. Jury Trial. EACH GRANTOR AND BANK, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO
ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT.

         30. Limitation of Liability. NO CLAIM MAY BE MADE BY ANY GRANTOR
AGAINST BANK OR THE MEMBERS, AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES,
ATTORNEYS OF BANK FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES
IN RESPECT OF ANY CLAIM (WHETHER BASED UPON ANY BREACH OF CONTRACT, TORT, BREACH
OF STATUTORY DUTY OR ANY OTHER THEORY OF LIABILITY) ARISING OUT OF OR RELATED TO
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ANY ACT, OMISSION OR EVENT
OCCURRING IN CONNECTION THEREWITH AND EACH GRANTOR HEREBY WAIVES, RELEASES AND
AGREES NOT TO SUE UPON ANY CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT NOW
ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

         31. Covenant Not to Issue Uncertificated Securities. Each Grantor
covenants to Bank that any Pledged Securities held by them shall be in
certificated form (as contemplated by Article 8 of the Uniform Commercial Code),
and that it will not seek to convert all or any part of

                                      -25-
<PAGE>

any Pledged Securities into uncertificated form (as contemplated by Article 8 of
the Uniform Commercial Code).

         32. Covenant Not to Dilute Interests of Secured Party in Securities.
Each Grantor represents, warrants and covenants to Bank that it will (a) not at
any time cause or permit any Subsidiary that is an issuer of Pledged Securities
to issue any capital stock or any warrant options or other rights to acquire any
capital stock, other than to such Grantor or as otherwise permitted under the
Credit Agreement and (b) pledge to Bank in accordance with the terms hereof,
immediately upon its acquisition (directly or indirectly) thereof, any and all
shares of stock or other securities of each issuer of Pledged Securities.

         33. Pledged Limited Liability Company Interests/Covenant Not to Dilute.
Each Grantor represents, warrants and covenants to Bank that it will (a) not at
any time cause or permit any Pledged Entities to issue any additional membership
interests or any other rights or options to acquire any additional limited
liability company interests, other than to the Grantors or as otherwise
permitted under the Credit Agreement, and (b) pledge to Bank in accordance with
the terms hereof, immediately upon its acquisition (directly or indirectly)
thereof, any and all additional Limited Liability Company Interests of each
Pledged Entity.

         34. Pledged Partnership Interests/Covenant Not to Dilute. Each Grantor
represents, warrants and covenants to Bank that it will (a) not at any time
cause or permit any Pledged Partnership Entities to issue any additional
partnership interests or any other rights or options to acquire any additional
partnership interests, other than to the Grantors or as otherwise permitted
under the Credit Agreement, and (b) pledge to Bank in accordance with the terms
hereof, immediately upon its acquisition (directly or indirectly) thereof, any
and all additional Partnership Interests of each Pledged Partnership Entity.

                                      -26-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto, by their officers
thereunto duly authorized, have executed this Agreement as of the day and year
first above written.

                                       CHADMOORE WIRELESS GROUP, INC.

                                       By: /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       CHADMOORE COMMUNICATIONS, INC.

                                       By: /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT TANNER, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT BEACON HILL, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                      -27-
<PAGE>

                                       PTT OF NEVADA, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       CMRS SYSTEMS, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                     CHADMOORE COMMUNICATIONS OF TENNESSEE, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT COMMUNICATIONS OF RICHMOND, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT MAPLE, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                      -28-
<PAGE>

                                       PTT COMMUNICATIONS OF HUNTSVILLE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT BURTON, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT COMMUNICATIONS OF FORT WAYNE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF ROANOKE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT TRISTAN, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                      -29-
<PAGE>

                                       PTT COMMUNICATIONS OF AUSTIN, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF JACKSONVILLE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF VIRGINIA BEACH,LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT ROSELAND, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT ARTINA, INC.

                                      -30-
<PAGE>

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT FRANKLIN, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT CHACO, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       800 SMR NETWORK, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT COMMUNICATIONS OF BATON ROUGE
                                       LIMITED

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF LAKE CHARLES,  LLC

                                      -31-
<PAGE>

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF BAY CITY, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       BARCLAYS BANK PLC

                                       By:  /s/Philip Capparis
                                       Name:  Philip Capparis
                                       Title:  Director

                                      -32-
<PAGE>

                                   Exhibit A-1
                                   -----------
To Security Agreement

                              FORM OF PLEDGE NOTICE

                             [Letterhead of Grantor]

                                                                    [Date]

TO:      [Name of Pledged Entity]

         Notice is hereby given that, pursuant to the Security Agreement (a true
and correct copy of which is attached hereto), dated as of [Date] (as amended,
modified or supplemented from time to time in accordance with the terms thereof,
the "Security Agreement"), among [NAME OF GRANTOR] (the "Grantor"), the other
pledgors from time to time party thereto and BARCLAYS BANK PLC(the "Bank"), the
Grantor has pledged and assigned to the Bank, and granted to the Bank a
continuing security interest in, all right, title and interest of the Grantor,
whether now existing or hereafter arising or acquired, as a [[limited partner]
[general partner]] [member] in [NAME OF PLEDGED ENTITY] (the ["Partnership"]
["LLC"]), and in, to and under the [TITLE OF APPLICABLE AGREEMENT] (the
"[Partnership] [LLC] Agreement"), including, without limitation:

         (i) all the capital of the [Partnership] [LLC] and the Grantor's
interest in all profits, income, surplus, losses, [Partnership] [LLC] assets and
other distributions to which the Grantor shall at any time be entitled in
respect of such [Partnership] [Membership] interest;

         (ii) all other payments due or to become due to the Grantor in respect
of such [partnership [limited liability company] interest, whether under the
[Partnership] [LLC] Agreement or otherwise, whether as contractual obligations,
damages, insurance proceeds or otherwise;

         (iii) all of its claims, rights, powers, privileges, authority,
options, security interest, liens and remedies, if any, under the [Partnership]
[LLC] Agreement or at law or otherwise in respect of such [Partnership]
[Membership] Interest;

                                      -33-
<PAGE>

         (iv) all present and future claims, if any, of the Grantor against the
[Partnership [LLC] for moneys loaned or advanced, for services rendered or
otherwise;

         (v) all of the Grantor's rights under the [Partnership] [LLC] Agreement
or at law to exercise and enforce every right, power, remedy, authority, option
and privilege of the Grantor relating to the [Partnership] [Membership]
Interest, including any power to terminate, cancel or modify the [Partnership]
[LLC] Agreement, to execute any instruments and to take any and all other action
on behalf of and in the name of the Grantor in respect of the [Partnership]
[Membership] Interest and the [Partnership] [LLC], to make determinations, to
exercise any election (including, but not limited, election of remedies) or
option or to give or receive any notice, consent, amendment, waiver or approval,
together with full power and authority to demand, receive, enforce, collect or
receipt for any of the foregoing, to enforce or execute any checks, or other
instruments or orders, to file any claims and to take any action in connection
with any of the foregoing;

         (vi) all other property hereafter delivered in substitution for or in
addition to any of the foregoing, all certificates and instruments representing
or evidencing such other property and all cash, securities, interest, dividends,
rights and other property at any time and from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all thereof;
and

         (vii) to the extent not otherwise included, all proceeds of any or all
of the foregoing.

         Pursuant to the Security Agreement, the [Partnership] [LLC] is hereby
authorized and directed to register the Grantor's pledge to the Bank of the
interest of the Grantor on the [Partnership's] [LLC's] books.

         The Grantor hereby requests the [Partnership] [LLC] to indicate the
[Partnership's] [LLC's] acceptance of this Notice and consent to and
confirmation of its terms and provisions by signing a copy hereof where
indicated on the attached page and returning the same to the Bank.

                                        [NAME OF GRANTOR]
                                        By
                                          --------------------------------------
                                        Name:
                                        Title:

                                      -34-
<PAGE>
                                   Exhibit A-2
                                   -----------
To Security Agreement

                          FORM OF ISSUER ACKNOWLEDGMENT
                          -----------------------------

         [NAME OF PLEDGED ENTITY] (the ["Partnership"] ["LLC"]) hereby
acknowledges receipt of a copy of the assignment by [NAME OF GRANTOR]
("Grantor") of its interest under the [TITLE OF APPLICABLE AGREEMENT] (the
"[Partnership] [LLC] Agreement") pursuant to the terms of the Security
Agreement, dated as of [Date] (as amended, modified or supplemented from time to
time in accordance with the terms thereof, the "Security Agreement"), among the
Grantor, the other grantors from time to time party thereto, and BARCLAYS BANK
PLC (the "Bank"). The undersigned hereby further confirms (i) the registration
of the Grantor's pledge of its interest to the Bank on behalf of the Secured
Creditors on the [Partnership's] [LLC's] books and (ii) upon receipt from the
Bank of a notice stating that an "Event of Default" has occurred and is
continuing, subject to applicable law, including the Communications Act and the
FCC Rulees, the undersigned shall only comply with instructions originated by
the Bank with respect to the pledge of the interest referred to above
notwithstanding contrary instructions given by any other person or entity,
including the Grantor until such time as otherwise notified by the Bank.

Dated:   _______, ____

                                        [NAME OF PLEDGED ENTITY]
                                        BY
                                           -------------------------------------
                                        Name:
         Title:

<PAGE>

                                    Exhibit B
                                    ---------

                              To Security Agreement
                              ---------------------

                            [SEPARATE INSTRUMENT FOR
                            EACH FORM OF COLLATERAL]

         GRANT OF SECURITY INTEREST

                        [PATENTS][TRADEMARKS][COPYRIGHTS]

THIS GRANT OF SECURITY INTEREST, dated as of ________________, 199_, is executed
by [GRANTOR], a [state of incorporation] corporation ("Grantor"), in favor of
BARCLAYS BANK PLC ("Secured Party").

         A. Pursuant to a Senior Secured Credit Agreement, dated as of [Date]
(the "Credit Agreement"), among Chadmoore Wireless Group, Inc. ("Chadmoore"),
the subsidiaries of Chadmoore party thereto (collectively, the "Subsidiaries,"
and together with Chadmoore, the "Borrowers") and Secured Party, Secured Party
has agreed to extend certain credit facilities to Borrowers upon the terms and
subject to the conditions set forth therein.

         [B. Grantor owns the letters patent, and/or applications for letters
patent, of the United States, more particularly described on Schedules 1-A and
1-B annexed hereto as part hereof (collectively, the "Patents");]

         [B. Grantor has adopted, used and is using the trademarks, more
particularly described on Schedules 1-A and 1-B annexed hereto as part hereof,
which trademarks are registered or subject to an application for registration in
the United States Patent and Trademark Office (collectively, the "Trademarks");]

         [B. Grantor owns the copyrights registered in the United States
Copyright Office, more particularly described on Schedule 1-A annexed hereto as
part hereof (collectively, the "Copyrights");]

         C. Grantor has entered into a Security Agreement dated the date hereof
(the "Security Agreement") in favor of Secured Party; and

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Patents, together with any reissue, continuation, continuation-in-part or
extension thereof, and all proceeds thereof, including any and all causes of
action which may exist by reason of infringement thereof for the full term of
the Patents (the "Collateral"), to secure the prompt payment, performance and
observance of the Obligations, as defined in the Security Agreement;

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Trademarks, together with the goodwill of the business symbolized by the
Trademarks and the customer lists and records related to the Trademarks

<PAGE>

and the applications and registrations thereof, and all proceeds thereof,
including any and all causes of action which may exist by reason of infringement
thereof (the "Collateral"), to secure the payment, performance and observance of
the Obligations, as defined in the Security Agreement;]

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Copyrights and the registrations thereof, together with any renewals or
extensions thereof, and all proceeds thereof, including any and all causes of
action which may exist by reason of infringement thereof for the full term of
the Copyrights (the "Collateral"), to secure the prompt payment, performance and
observance of the Obligations, as defined in the Security Agreement;]

         NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged, Grantor does hereby further grant to Secured Party a
security interest in the Collateral to secure the prompt payment, performance
and observance of the Obligations.

Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the security interest in the Collateral granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are hereby incorporated herein by reference as if fully set
forth herein.

         Secured Party's address is:                 BARCLAYS BANK PLC
                                                     222 Broadway
                                                     New York, NY  10038

<PAGE>

IN WITNESS WHEREOF, Grantor has caused this instrument to be executed as of the
day and year first above written.

[GRANTOR]

         By:

         Name:
              ---------------------------------------

Title:
      --------------------------------------

STATE OF NEVADA                     )
                                            )
COUNTY OF                           )
          --------------------------

         On _______________________________ __________, 199___ before me,
_________________________, personally appeared , personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in her/her/their authorized capacity(ies), and
that by his/her/their signature(s) on such instrument the person or entity on
behalf of which the person(s) acted executed the instrument.

              WITNESS my hand and official seal.

              Signature                                                 (Seal)
                        ----------------------------------

Exhibit 10.3
                               SECURITY AGREEMENT

                  This SECURITY AGREEMENT ("Agreement"), dated as of August 31,
2000 is made between each entity set forth on the signature pages hereto as a
grantor (each such entity and each entity which hereafter executes and delivers
a Borrower Joinder in substantially the form of Exhibit E to the Credit
Agreement or a Subsidiary Joinder in substantially the form of Attachment 1 to
the Guaranty (as defined below) to be referred to herein as a "Grantor", and
collectively as, the "Grantors") and BARCLAYS BANK PLC ("Bank").

                                    RECITALS

         A. Bank is entering into a Credit Agreement, dated as of August 31,
2000 (such agreement, as it may hereafter be amended or modified, the "Credit
Agreement" with Chadmoore Wireless Group, Inc. ("Chadmoore") and a Guaranty of
even date herewith with the subsidiaries of Chadmoore (collectively, the
"Subsidiaries").

         B. It is a condition precedent to the extension of credit by Bank under
the Credit Agreement that each Grantor shall have executed and delivered this
Agreement and shall have granted a security interest in all of its assets to
Bank in accordance herewith.

         C. Terms defined in the Credit Agreement and not otherwise defined
herein have the same respective meanings when used herein.

                                    AGREEMENT

                  NOW, THEREFORE, in order to induce Bank to enter into the
Credit Agreement and for other good and valuable consideration, the receipt and
adequacy of which hereby is acknowledged, each Grantor hereby represents,
warrants, covenants, agrees and grants as follows:

         1. Definitions. Unless the context otherwise requires, terms defined in
the Uniform Commercial Code of the State of New York (the "Uniform Commercial
Code") and not otherwise defined in this Agreement or in the Credit Agreement
shall have the meanings defined for those terms in the Uniform Commercial Code.
In addition, the following terms shall have the meanings respectively set forth
after each:

                  "Certificates" means all certificates, instruments and other
documents now or hereafter representing or evidencing any Pledged Securities or
Pledged Limited Liability Company Interests.

                  "Closing Date" shall mean the date of this Agreement.

                  "Collateral" means and includes all present and future right,
title, interest, claims and demands of each Grantor in or to any personal
property or assets whatsoever, whether now

                                      -1-
<PAGE>
owned or existing or hereafter arising or acquired and wheresoever located, and
all hereafter arising or acquired and wheresoever located, and all rights and
powers of such Grantor to transfer any interest in or to any personal property
or assets whatsoever, including without limitation, any and all of the following
personal property:

         (a) All present and future acounts, accounts receivable, agreements,
guaranties, contracts (including without limitation management agreements,
leases, contract rights and rights to payment (collectively, the "Accounts"),
together with all instruments, documents, chattel paper, security agreements,
guaranties, undertakings, surety bonds, insurance policies, notes and drafts,
and all forms of obligations owing to such Grantor or to which such Grantor may
have an interest, however created or arising;

         (b) All present and future general intangibles, including without
limitation, (i) each FCC License and each Other Authorization described on
Schedules 1.01(a)(1), 1.01(a)(2) and 1.01(a)(3) of the Nextel Agreement and
including without limitation, all of such Grantor's rights under or relating to
any FCC License or any Other Authorization and the proceeds of any FCC License
or Other Authorization; provided, however, that the Collateral does not include
at any time any FCC License to the extent, but only to the extent, that such
Grantor is prohibited at that time from granting a security interest therein
pursuant to the Communications Act and the FCC Rules, but includes, to the
maximum extent permitted by law, all of such Grantor's proprietary rights
vis-a-vis third parties under or relating to any FCC License and the rights to
receive all proceeds derived from or in connection with the sale, assignment or
transfer of such FCC License, (ii) all tax refunds of every kind and nature to
which such Grantor now or hereafter may become entitled, however arising, (iii)
all other refunds, (iv) all commitments to extend financing to such Grantor, (v)
all deposits, (vi) all goodwill, (vii) all choses in action, (viii) all
insurance proceeds, and (ix) all trade secrets, computer programs, software,
customer lists, trademarks, trade names, patents, licenses, copyrights,
tecnology, processes and proprietary information, including without limitation,
the Copyrights, the Patents and the Marks and the goodwill of such Grantor's
business connected with and symbolized by the Marks;

         (c) All present and future demand, time, savings, passbook, deposit and
like accounts (general or special) (collectively, the "Deposit Accounts") in
which such Grantor has any interest which is maintained with any bank, savings
and loan association, credit union or like organization and all money, cash and
cash equivalents of such Grantor, whether or not deposited in any Deposit
Account;

         (d) All present and future books and records, including without
limitation, books of account and ledgers of every kind and nature, all
electronically recorded data relating to such Grantor, all receptacles and
containers for such records, and all files and correspondence;

         (e) All present and future goods, including without limitation, all
equipment, machinery, audio and/or video recording equipment, transmitting
towers, transmitters, broadcasting equipment, videotapes, audio tapes, DAT tapes
and other recorded media, tools, molds, dies, furniture, furnishings, fixtures,
trade fixtures and all other goods used in connection with or in

                                      -2-
<PAGE>

the conduct of such Grantor's business, including without limitation, all goods
as defined in Section 9101(2) of the Uniform Commercial Code (collectively, the
"Equipment");

         (f) All present and future inventory and merchandise, including without
limitation, all present and future goods held for sale or lease or to be
furnished under a contract of service, all recorded media, all raw materials,
work in process and finished goods, all packing materials, supplies and
containers relating to or used in connection with any of the foregoing, and all
bills of lading, warehouse receipts and documents of title relating to any of
the foregoing (collectively, the "Inventory");

         (g) All present and future stocks, bonds, debentures, certificated and
uncertificated securities, security entitlements, subscription rights, options,
warrants, puts, calls, certificates, security accounts, commodity accounts,
commodity contracts, partnership interests, limited liability compnay interests,
joint venture interests and investment and/or brokerage accounts, and all other
investment properties, including without limitation, the Certificates, the
Pledged Securities, the Pledged Partnership Interests, the Pledged Limited
Liability Company Interests and all rights, preferences, privileges, dividends,
distributions (in cash or in kind), redemption payments or liquidation payments
with respect thereto;

         (h) All present and future accessions, appurtenances, components,
repairs, repair parts, spare parts, replacements, substitutions, additions,
issue and/or improvements to or of or with respect to any of the foregoing;

         (i) All other tangible and intangible personal property of such
Grantor;

         (j) All rights, remedies, powers and/or privileges of such Grantor with
respect to any of the foregoing; and

         () Any and all proceeds and products of the foregoing, including
without limitation, all money, accounts, general intangibles, deposit accounts,
documents, instruments, chattel paper, goods, insurance proceeds and any other
tangible or intangible property received upon the sale or disposition of any of
the foregoing.

                  "Communications Act" has the meaning given to that term in the
Credit Agreement.

                  "Copyright" means all:

(a) Copyrights, whether or not published or registered under the Copyright Act
of 1976, 17 U.S.C. Section 101 et seq., as the same shall be amended from time
to time and any predecessor or successor statute thereto (the "Copyright Act"),
and applications for registration of copyrights, and all works of authorship and
other intellectual property rights therein, including without limitation,
copyrights for computer programs, source code and object code databases and
related materials and documentation, and (i) all renewals, revisions, derivative
works,

                                      -3-
<PAGE>

enhancements, modifications, updates, new releases and other revisions thereof,
(ii) all income, royalties, damages and payments now and hereafter due and/or
payable with respect thereto, including without limitation, payments under all
licenses entered into in connection therewith and damages and payments for past
or future infringements thereof, (iii) the right to sue for past, present and
future infringemens thereof and (iv) all of such Grantor's rights corresponding
thereto throughout the world;

         (b) Rights under or interests in any copyright license agreements with
any other party, whether Grantors are a licensee or licensor under any such
license agreement and the right to use the foregoing in connnection with the
enforcement of the Bank's rights under the Operative Documents; and

         (c) Copyrightable materials now or hereafter owned by such Grantor,
including without limitation, all tangible property embodying the copyright
described in clause (a) hereof or such copyrightable materials, and all tangible
property covered by the licenses described in clause (b) hereof.

                  "Disclosure Schedule"has the meaning given to that term in the
Credit Agreement.

                  "FCC" has the meaning given to that term in the Credit
Agreement.

                  "FCC License" has the meaning given to that term in the Credit
Agreement.

                  "FCC Rules" has the meaning given to that term in the Credit
Agreement.

                  "Governmental Authority" has the meaning given to that term in
the Credit Agreement.

                  "Guaranty" has the meaning given to that term in the Credit
Agreement.

                  "Issuer Acknowledgement" has the meaning given to that term in
Section 3(b) of this Agreement.

                  "Liens" has the meaning given to that term in the Credit
Agreement.

                  "Limited Liability Company Interests" means the entire limited
liability company interest at any time owned by the Grantors in any Pledged
Entity.

                  "Loans" has the meaning given to that term in the Credit
Agreement.

                  "Marks" means all (a) trademarks, trademark registrations,
interest under trademark license agreements, trade names, trademark
applications, service marks, business names, trade styles, designs, logos and
other source or business identifiers for which registrations have been issued or
applied for in the United States Patent and Trademark Office or in any other
office or with any other official anywhere in the world or which are used in the
United States or

                                      -4-
<PAGE>

any state, territory or possession thereof, or in any other place, nation or
jurisdicion anywhere in the world, (b) licenses pertaining to any such mark
whether such Grantor is licensor or licensee, (c) all income, royalties, damages
and payments for past, present or future infringements thereof, (d) rights to
sue for past, present and future infringements thereof, (e) rights corresponding
thereto throughout the world, (f) all product specification documents and
production and quality control manuals used in the manufacture of products sold
under or in connection with such marks, (g) all documents that reveal the name
and address of all sources of supply of, and all terms of purchase and delivery
for, all materials and components used in the production of products sold under
or in connection with such marks, (h) all documents constituting or concerning
the then current or proposed advertising and promotion by such Grantor, their
subsidiaries or licensees of products sold under or in connection with such
marks, including without limitation, all documents that reveal the media used or
to be used and the cost for all such advertising conducted within the described
period or planned for such products and (i) renewals and proceeds of any of the
foregoing.

                  "Material Adverse Effect" has the meaning given to that term
in the Credit Agreement.

                  "Obligations" has the meaning given to that term in the Credit
Agreement.

                  "Operative Documents" has the meaning given to that term in
the Credit Agreement.

                  "Other Authorization" has the meaning given to that term in
the Credit Agreement.

                  "Patents" means all (a) letters patent, design patents,
utility patents, inventions and trade secrets, all patents and patent
applications in the United States Patent and Trademark Office, and interests
under patent license agreements, including without limitation, the inventions
and improvements described and claimed therein, (b) licenses pertaining to any
patent whether such Grantor is licensor or licensee, (c) income, royalties,
damges and payments now and hereafter due and /or payable under and with respect
thereto, including without limitation, damages and payments for past, present or
future infringements, (d) rights to sue for past, present and future
infringements thereof, (e) rights corresponding thereto throughout the world in
all jurisdictions in which such patents have been issud or applied for and (f)
the reissues, divisions, continuations, renewals, extensions and
continuations-in-part of any of the foregoing.

                  "Permitted Liens" has the meaning given to that term in the
Credit Agreement.

                  "Person" has the meaning given to that term in the Credit
Agreement.

                  "Partnership Interests" means the entire partnership interest
at any time owned by the Grantors in any Pledged Partnership Entity.

                                      -5-
<PAGE>

                  "Pledge Notice" shall have the meaning ascribed to it in
Section 3(b) of this Agreement.

                  "Pledged Collateral" means the Certificates, the Pledged
Securities, the Pledged Partnership Interests and the Pledged Limited Liability
Company Interests.

                  "Pledged Entity" means each limited liability company set
forth in Schedule 1 attached hereto, together with any other limited liability
company in which any Grantor may have an interest at any time.

                  "Pledged Limited Liability Company Interests" means all
limited liability company interests held by each Grantor, including, but not
limited to those limited liability company interests set forth in Schedule 1
attached hereto, as such Schedule may be supplemented from time to time in
accordance with the terms of this Agreement and all capital, limited liability
company assets, dividends, cash, instruments and other properties from time to
time received, to be received or otherwise distributed in respect of or in
exchange for any or all of such interests and all certificates and instruments
representing or evidencing such other property received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof.

                  "Pledged Partnership Entity" means each partnership interest
set forth in Schedule 1 attached hereto, together with any other partnership
interest in which any Grantor may have an interest at any time.

                  "Pledged Partnership Interests" means all interests in any
partnership or joint venture held by each Grantor, including, but not limited to
those partnership interests set forth in Schedule 1 attached hereto, as such
Schedule may be supplemented from time to time in accordance with the terms of
this Agreement, and all dividends, cash, instruments and other properties from
time to time received, to be received or otherwise distributed in respect of or
in exchange for any or all of such interests.

                  "Pledged Securities" means all shares of capital stock of each
issuer in which each Grantor has an interest, including, but not limited to
those shares of capital stock set forth in Schedule 1 attached hereto, as such
Schedule may be supplemented from time to time in accordance with the terms of
this Agreement, and all dividends, cash, instruments and other properties from
time to time received, to be received or otherwise distributed in respect of or
in exchange for any or all of such shares.

                  "Term" has the meaning given to that term in the Credit
Agreement.

         2. Creation of Security Interest. Each Grantor, in order to secure the
Obligations, does hereby grant and pledge to Bank to the extent permitted by law
a security interest in and to, all right, title and interest of such Grantor in
and to all presently existing and hereafter acquired Collateral. The security
interest and pledge created by this Section 2 shall continue in effect so long
as any Obligation remains outstanding or Bank has any obligation to make Loans
under the

                                      -6-
<PAGE>

Credit Agreement. Notwithstanding the foregoing provisions of this Section 2,
such grant of a security interest shall not extend to, and the term "Collateral"
shall not include, any general intangibles of the Grantors to the extent that
(but only to the extent that) (i) such general intangibles are not assignable or
capable of being encumbered as a matter of law or under the terms of the license
or other agreement applicable thereto (but solely to the extent that any such
restriction shall be enforceable under applicable law), without the consent of
the licensor thereof or other applicable party thereto and (ii) such consent has
not been obtained; provided, however, that the foregoing grant of a security
interest shall extend to, and the term "Collateral" shall include, (A) any
general intangible which is in the nature of an account receivable or a right to
the payment of money or a proceed of, or otherwise related to the enforcement or
collection of, any account receivable or right to the payment of money, or goods
which are the subject of any account receivable or right to the payment of
money, (B) any and all proceeds of any general intangibles which are otherwise
excluded to the extent that the assignment or encumbrance of such proceeds is
not so restricted, and (C) upon obtaining the consent of any such licensor or
other applicable party's consent with respect to any such otherwise excluded
general intangibles, such general intangibles as well as any and all proceeds
thereof that might have theretofor have been excluded from such grant of a
security interest and the term "Collateral".

         3. Delivery of Pledged Collateral.

         (a) With respect to each Certificate on (i) the Closing Date and (ii)
the day on which such Certificate shall be received or acquired by a Grantor
(with respect to any Certificate received or acquired after the Closing Date
that is not delivered to Senior Lender), and (iii) the day on which any such
Certificate is delivered to Senior Lender, Grantor shall deliver to Bank a
letter, countersigned by Senior Lender, in the form set forth in Exhibit A-1A
attached hereto (the "Pledge Letter") or, if Senior Lender does not have
possession of such Certificates, Grantor shall deliver to Bank the Certificates,
accompanied by instruments of transfer in blank, in form and substance
reasonably satisfactory to Bank.

         (b) With respect to each uncertificated Limited Liability Company
Interest and each uncertificated Partnership Interest, on (i) the Closing Date
(with respect to such Limited Liability Company Interests and such Partnership
Interests existing on such date) and (ii) the day on which any such Limited
Liability Company Interest and any such Partnership Interest shall be acquired
by a Grantor (with respect to such Limited Liability Company Interests and such
Partnership Interests acquired after the Closing Date), a notice in the form set
forth in Exhibit A-1 attached hereto (the "Pledge Notice") shall be
appropriately completed and delivered to each Pledged Entity and each Pledged
Partnership Entity, notifying each Pledged Entity and each Pledged Partnership
Entity of the existence of this Agreement, a certified copy of this Agreement
shall be delivered by the Grantor to the relevant Pledged Entity and relevant
Pledged Partnership Entity, and such Grantor shall have received and delivered
to Bank a copy of such Pledge Notice, along with an acknowledgment in the form
set forth in Exhibit A-2 attached hereto (the "Issuer Acknowledgment"), duly
executed by the relevant Pledged Entity.

                                      -7-
<PAGE>

         (c) Subject to receipt of any and all necessary prior approvals
required under the Communications Act and the FCC Rules, Bank shall have the
right, upon the occurrence and during the continuance of an Event of Default,
without notice to any of the Grantors, in connection with a commercially
reasonable foreclosure sale, to transfer to, or to direct the applicable Grantor
or any nominee of such Grantor to register or cause to be registered in the name
of, Bank or any of its nominees any or all of the Pledged Securities, Pledged
Partnership Interests or Pledged Limited Liability Company Interests. In
addition, Bank shall have the right at any time to exchange certificates or
instruments representing or evidencing Pledged Securities for certificates or
instruments of smaller or larger denominations.

         4. Further Assurances.

         (a) At any time and from time to time at the reasonable written request
of Bank, each Grantor shall execute and deliver to Bank, at such Grantor's
expense, all such financing statements and other instruments, certificates and
documents (including notices to financial institutions holding deposit accounts
of any Grantor as to the security interest granted hereby) in form and substance
reasonably satisfactory to Bank, and perform all such other acts as shall be
necessary or reasonably desirable to fully perfect or protect or maintain, when
filed, recorded, delivered or performed, Bank's security interests granted
pursuant to this Agreement or to enable Bank to exercise and enforce its rights
and remedies hereunder with respect to any Collateral. Without limiting the
generality of the foregoing, each Grantor shall: (i) at the request of the Bank,
mark conspicuously each document included in the Inventory and each other
contract relating to the Accounts, and all chattel paper, instruments and other
documents and each of its records pertaining to the Collateral with a legend, in
form and substance satisfactory to Bank, indicating that such document,
contract, chattel paper, instrument or Collateral is subject to the security
interest granted hereby, (ii) at the request of Bank, if any Account or contract
or other writing relating thereto shall be evidenced by a promissory note or
other instrument, deliver and pledge to the Bank, such note or other instrument
duly endorsed and accompanied by duly executed undated instruments of transfer
or assignment, all in form and substance reasonably satisfactory to the Bank;
(iii) execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be necessary or
desirable, or as Bank may reasonably request, in order to perfect and preserve,
with the required priority, the security interests granted, or purported to be
granted hereby, (iv) upon any Grantor's registration or application of any
copyright under the Copyright Act, execute and deliver immediately to Bank for
recordation and filing in the United States Copyright Office a Grant of Security
Interest, in the form of Exhibit B attached hereto, (v) upon any Grantor's
registration or application of any Patent or Mark, execute and deliver
immediately to Bank for recordation and filing in the United States Patent and
Trademark Office a Grant of Security Interest, in the form of Exhibit B attached
hereto, and (vi) with respect to any license or agreement in which any Grantor
now has or hereafter acquires an interest which by its terms prohibits
assignment, such Grantor will use its best efforts to procure the consent of the
counterpart party thereto.

         (b) At any time and from time to time, Bank shall be entitled to file
and/or record any or all such financing statements, instruments and documents
held by it, and any or all such

                                      -8-
<PAGE>

further financing statements, documents and instruments, relative to the
Collateral or any part thereof in each instance, and to take all such other
actions as Bank may reasonably deem appropriate to perfect and to maintain
perfected the security interests granted herein.

         (c) Each Grantor hereby authorizes Bank to file one or more financing
or continuation statements, and amendments thereto, relative to all or any part
of the Collateral without the signature of such Grantor where permitted by law.
A carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.

         (d) With respect to any Collateral consisting of securities,
instruments, partnership or joint venture interests, limited liability company
interests, or the like, each Grantor hereby consents and agrees that, upon the
occurrence and during the continuance of an Event of Default, subject to receipt
of any and all necessary prior approvals required under the Communications Act
and the FCC Rules, the issuers of, or obligors on, any such Collateral, or any
registrar or transfer agent or trustee for any such Collateral, shall be
entitled to accept the provisions of this Agreement as conclusive evidence of
the right of Bank to effect any transfer or exercise any right hereunder or with
respect to any such Collateral subject to the terms hereof, notwithstanding any
other notice or direction to the contrary heretofore or hereafter given by any
Grantor or any other Person to such issuers or such obligors or to any such
registrar or transfer agent or trustee.

         5. Voting Rights; Dividends; etc. Subject to receipt of any and all
necessary prior approvals required under the Communications Act and the FCC
Rules, so long as no Event of Default shall have occurred and be continuing:

         (a) Voting Rights. Each Grantor shall be entitled to exercise any and
all voting and other consensual rights pertaining to its Pledged Securities, its
Pledged Partnership Interests and its Pledged Limited Liability Company
Interests, or any part thereof, for any purpose not inconsistent with the terms
of this Agreement, the Credit Agreement or the other Operative Documents;
provided, however, that each Grantor shall not exercise, or shall refrain from
exercising, any such right if it would result in a Default.

         (b) Dividend and Distribution Rights. Subject to the terms of the
Credit Agreement, each Grantor shall be entitled to receive and to retain and
use any and all dividends or distributions paid in respect of its Pledged
Securities, its Pledged Partnership Interests or its Pledged Limited Liability
Company Interests; provided, however, that any and all:

             (i) non-cash dividends or distributions in the form of capital
stock, certificated limited liability company interests, instruments or other
property received, receivable or otherwise distributed in respect of, or in
exchange for, any Pledged Securities, Pledged Partnership Interests, Pledged
Limited Liability Company Interests,

             (ii) dividends and other distributions paid or payable in cash in
respect of any Pledged Securities, Pledged Partnership Interests or Pledged
Limited Liability Company

                                      -9-
<PAGE>

Interests in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in-surplus, and

             (iii) cash paid, payable or otherwise distributed in redemption of,
or in exchange for, any Pledged Securities, Pledged Partnership Interests or
Pledged Limited Liability Company Interests,

         shall, except as otherwise provided for in the Credit Agreement or the
other Operative Documents, forthwith be delivered to Bank, in the case of (i)
above, to be held as Collateral and shall, if received by such Grantor, be
received in trust for the benefit of Bank, be segregated from the other property
of such Grantor and forthwith be delivered to Bank as Collateral in the same
form as so received (with any necessary endorsements), and in the case of (ii)
and (iii) above, to be applied to the Obligations to the extent permitted by the
Credit Agreement or otherwise to be held as Collateral.

         6. Rights as to Pledged Collateral During Event of Default. When an
Event of Default has occurred and is continuing, subject to receipt of any and
all necessary prior approvals required under the Communications Act and the FCC
Rules:

         (a) Voting, Dividend and Distribution Rights. At the option of Bank,
all rights of each Grantor to exercise the voting and other consensual rights
which it would otherwise be entitled to exercise pursuant to Section 5(a) above,
and to receive the dividends and distributions which it would otherwise be
authorized to receive and retain pursuant to Section 5(b) above, shall cease,
and all such rights shall thereupon become vested in Bank who shall thereupon
have the sole right to exercise such voting and other consensual rights and to
receive and to hold as Pledged Collateral such dividends and distributions
during the continuance of such Event of Default.

         (b) Dividends and Distributions Held in Trust. All dividends and other
distributions which are received by any Grantor contrary to the provisions of
Section 6(a) of this Agreement shall be received in trust for the benefit of
Bank, shall be segregated from other funds of such Grantor and forthwith shall
be paid over to Bank as Collateral in the same form as so received (with any
necessary endorsements).

         7. Irrevocable Proxy. Except for the proxy granted to Senior Lender,
each Grantor hereby revokes all previous proxies with regard to its Pledged
Securities, its Pledged Partnership Interests and its Pledged Limited Liability
Company Interests and, subject to receipt of any and all necessary prior
approvals required under the Communications Act and the FCC Rules, appoints Bank
as its respective proxyholder to (a) attend and vote at any and all meetings of
the shareholders of the corporation(s) which issued the Pledged Securities, and
any adjournments thereof, held on or after the date of the giving of this proxy
and prior to the termination of this proxy and to execute any and all written
consents of shareholders of such corporation(s) executed on or after the date of
the giving of this proxy and prior to the termination of this proxy, with the
same effect as if such Grantor had personally attended the meetings or had
personally

                                      -10-
<PAGE>

voted its shares or had personally signed the written consents, waivers or
ratification, and (b) to attend and vote at any and all meetings of the members
of the Pledged Entities or partners of the Pledged Partnership Entities (whether
or not such Pledged Limited Liability Company Interests or Pledged Partnership
Interests are transferred into the name of Bank), and any adjournments thereof,
held on or after the date of the giving of this proxy and to execute any and all
written consents, waivers and ratifications of the Pledged Entities or Pledged
Partnership Entities executed on or after the date of the giving of this proxy
and prior to the termination of this proxy with the same effect as if such
Grantor had personally attended the meetings or had personally voted on their
respective Limited Liability Company Interests or Partnership Interests or had
personally signed the consents, waivers or ratifications; provided, however,
that Bank as proxyholder shall have rights hereunder only upon the occurrence
and during the continuance of an Event of Default and subject to Section 13(j)
hereof. Each Grantor hereby authorizes Bank to substitute another Person (which
Person shall be a successor to the rights of Bank hereunder, a nominee appointed
by Bank to serve as proxyholder, or otherwise as approved by such Grantor in
writing, such approval not to be unreasonably withheld) as the proxyholder and,
upon the occurrence or during the continuance of any Event of Default, hereby
authorizes and directs the proxyholder to file this proxy and the substitution
instrument with the secretary of the appropriate corporation. This proxy
is-coupled with an interest and is irrevocable until such time as no part of any
commitment to make Loans pursuant to the Credit Agreement remains outstanding
and all Obligations have been indefeasibly paid in full.

         8. The Grantors' Representations and Warranties. Each Grantor
represents and warrants as follows:

         (a) (i) The locations listed on the Schedule 2 constitute all locations
at which Collateral owned by such Grantor is located; (ii) the chief executive
office of such Grantor, where such Grantor keeps its records concerning the
Collateral, is located at the address set forth for such Grantor on Schedule 3;
and (iii) such Grantor has exclusive possession and control of the Collateral
owned by such Grantor.

         (b) Such Grantor currently conducts business only under its own name
and the trade names listed on Schedule 4. Neither such Grantor nor any corporate
predecessor has, during the preceding five years, been known as or used any
other corporate or fictitious name, except the names disclosed on Schedule 4.

         (c) Such Grantor is the legal and beneficial owner of the Collateral
free and clear of all Liens except for Permitted Liens and restrictions imposed
by the FCC Rules. Such Grantor has the power, authority and legal right to grant
the security interests in the Collateral purported to be granted hereby, and to
execute, deliver and perform this Agreement. The pledge of the Collateral
pursuant to this Agreement creates a valid first priority security interest in
the Collateral (except for any Permitted Liens).

         (d) Except as set forth on Schedule 1, the Pledged Securities described
on Schedule 1 attached hereto constitute (i) all of the shares of capital stock
of any Person owned by such

                                      -11-
<PAGE>

Grantor and (ii) that percentage of the issued and outstanding shares of the
respective issuers thereof indicated on Schedule 1 attached hereto, and there is
no other class of shares issued and outstanding of the respective issuers
thereof except as set forth on Schedule 1 attached hereto. Except as set forth
in Schedule 1, the Pledged Partnership Interests described on Schedule 1
attached hereto constitute all of the partnerships or joint ventures in which
each Grantor has an interest, and such Grantor's percentage interest in each
such partnership or joint venture is as set forth on such Schedule 1 attached
hereto. Except as set forth in Schedule 1, the Pledged Limited Liability Company
Interests described on Schedule 1 attached hereto constitute all of the Limited
Liability Company Interests of each Grantor and such Grantor's percentage
interest in each such Pledged Entity is as set forth on Schedule 1 attached
hereto.

         (e) No authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority (other than such authorizations,
approvals and other actions as have already been taken and are in full force and
effect) is required (A) for the pledge of the Collateral or the grant of the
security interest in the Collateral by any of the Grantors hereby or for the
execution, delivery or, subject to approvals described in Section 13(j)(ii)
hereof, performance of this Agreement by any of the Grantors, or (B) for the
exercise by Bank of the voting rights in the Pledged Securities, the Pledged
Partnership Interest or the Pledged Limited Liability Company Interests or of
any other rights or remedies in respect of the Collateral hereunder except (1)
as may be required in connection with any disposition of Collateral consisting
of securities by laws affecting the offering and sale of securities generally,
and (2) as may be required by the FCC Rules and the Comunications Act.

         9. Copyrights.

         (a) Royalties. Each Grantor hereby agrees that the use by Bank of the
Copyrights as authorized hereunder in connection with Bank's exercise of their
rights and remedies hereunder shall be without any liability for royalties or
other related charges from Bank to Grantors.

         (b) Restrictions on Future Agreements. Subject to the terms hereof and
of the Credit Agreement, each Grantor shall be permitted to manage, license and
administer its Copyrights in such manner as such Grantor in its reasonable
business judgment deems desirable, provided, however, that such Grantor will
not, without the Bank's prior written consent, such consent not to be
unreasonably withheld, (i) enter into any copyright license agreements except
license agreements entered into in the ordinary course of its business
consistent with past practices and containing such additional provisions to
protect Bank's interest hereunder as Bank may from time to time reasonably
request or (ii) take any action, or permit any action to be taken by others,
including, without limitation, licensees, or fail to take any action, which
would customarily be taken by a Person in the same business and in similar
circumstances as such Grantor, which could in any respect reasonably be expected
to have a Material Adverse Effect.

         (c) Duties of Grantors. Each Grantor shall have the duty to:

             (i) prosecute diligently any copyright application included in the
Copyrights,

                                      -12-
<PAGE>

             (ii) upon the occurrence and during the continuance of an Event of
Default, at the request of Bank, make application for registration of such
uncopyrighted but copyrightable material owned by such Grantor as Bank
reasonably deems appropriate if the failure to do so could reasonably be
expected to have a Material Adverse Effect,

             (iii) place notices of copyright on all copyrightable property
produced or owned by such Grantor embodying the Copyrights and use diligent
reasonable efforts to have its licensees do the same and

             (iv) take all reasonable action necessary in such Grantor's
reasonable business judgment consistent with past practices to preserve and
maintain all of Grantor's rights in the Copyrights that are or shall be
necessary in the operation of Grantor's business, including, without limitation,
making timely filings for renewals and extensions of registered Copyrights and
diligently monitoring unauthorized use thereof, unless the failure to do so
could not reasonably be expected to have a Material Adverse Effect. Any expenses
incurred in connection with the foregoing shall be borne by Grantors. Bank shall
have no duty with respect to the Copyrights other than to act lawfully and
without gross negligence or willful misconduct. Without limiting the generality
of the foregoing, Bank shall not be under any obligation to take any steps
necessary to preserve rights in the Copyrights against any other parties, but
Bank may do so at its option upon the occurrence and during the continuance of
an Event of Default, and all reasonable expenses incurred in connection
therewith shall be for the sole account of Grantors and shall be added to the
Obligations.

         10. Patents and Marks.

         (a) Royalties. Each Grantor hereby agrees that any rights granted
hereunder to Bank with respect to Patents and Marks shall be applicable to all
jurisdictions in which such Grantor has the right to use such Patents and Marks,
from time to time, and without any liability for royalties or other related
charges from Bank to Grantors.

         (b) Restrictions on Future Agreements. Each Grantor will not, without
Bank's prior written consent, such consent not to be unreasonably withheld,
abandon any Patent or Mark in which such Grantor now owns or hereafter acquires
any rights or interests if such abandonment could reasonably be expected to have
a Material Adverse Effect or enter into any agreement, including, without
limitation, any license agreement, which is inconsistent with such Grantor's
obligations under this Agreement, if such actions could reasonably be expected
to have a Material Adverse Effect. Each Grantor further agrees that it will not
take any action, or permit any action to be taken by others subject to its
control, including licensees, or fail to take any action which would customarily
be taken by a Person in the same business and in similar circumstances as such
Grantor, which could reasonably be expected to have a Material Adverse Effect.

         (c) Duties of Grantors. Each Grantor shall have the duty to

                                      -13-
<PAGE>

             (i) prosecute diligently any patent application or trademark
application pending as of the date hereof or thereafter until the Obligations
shall have been indefeasibly paid in full and Bank has no obligation to make any
Loans under the Credit Agreement,

             (ii) upon the occurrence and during the continuance of an Event of
Default, make application on unpatented but patentable inventions owned by such
Grantor and on Marks, as the case may be, as Bank reasonably deems appropriate,

             (iii) file and prosecute opposition and cancellation proceedings if
the failure to do so could reasonably be expected to have a Material Adverse
Effect and

             (iv) take all reasonable action necessary in such Grantor's
reasonable business judgment consistent with past practices to preserve and
maintain all rights in patent applications of the Patents and in applications
for registrations of the Marks unless the failure so to do could not reasonably
be expected to have a Material Adverse Effect. Any expenses incurred in
connection with such applications shall be borne by Grantors. Each Grantor shall
not abandon any right to file a Patent application or Mark application without
the consent of Bank (which consent shall not be unreasonably withhold) if such
abandonment could reasonably be expected to have a Material Adverse Effect. Each
Grantor shall give proper statutory notice in connection with its use of each of
the Marks to the extent necessary for the protection of each of the Marks.
Grantors shall notify the Bank of any suits it commences to enforce the Patents
and Marks and shall provide Bank with copies of any documents reasonably
requested by Bank relating to such suits.

         11. Grantors' Covenants. In addition to the other covenants and
agreements set forth herein and in the other Operative Documents, each Grantor
covenants and agrees as follows:

         (a) Such Grantor will pay, prior to delinquency, all taxes, charges,
Liens and assessments against the Collateral owned by it, except those with
respect to which the amount or validity is being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of such Grantor and except those which
could not reasonably be expected to have a Material Adverse Effect.

         (b) The Collateral will not be used in violation of any material law,
regulation or ordinance or any applicable laws (including without limitation,
all applicable regulations, rules and orders), nor used in any way that will
void or impair any insurance required to be carried in connection therewith.

         (c) Such Grantor will keep the Collateral in reasonably good repair,
working order and operating condition (normal wear and tear excluded), and from
time to time make all necessary and proper repairs, renewals, replacements,
additions and improvements thereto and, as appropriate and applicable, will
otherwise deal with the Collateral in all such ways as are considered customary
practice by owners of like property.

                                      -14-
<PAGE>

         (d) Such Grantor will take all reasonable steps to preserve and protect
the Collateral except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

         (e) Such Grantor will maintain all insurance coverage required pursuant
to Section 6.01 of the Credit Agreement.

         (f) Such Grantor will promptly notify Bank in writing in the event of
any material damage to the Collateral from any source whatsoever.

         (g) Such Grantor will not (i) establish any location of Collateral not
listed in Schedule 2, (ii) move its principal place of business, chief executive
offices or any other office listed in Schedule 3 or (iii) adopt, use or conduct
business under any trade name or other corporate or fictitious name not
disclosed in Schedule 4, except upon not less than 30 days prior written notice
to Bank and such Grantor's prior compliance with all applicable requirements of
Section 4 hereof necessary to perfect Bank's security interest hereunder.

         (h) Subject to the provisions of Section 15(j) hereof, such Grantor
agrees to take any action which Bank may reasonably request in order to obtain
from the FCC such approval as may be necessary to enable Bank to exercise and
enjoy the full rights and benefits granted to them by this Agreement, including
the use of such Grantor's best efforts to assist in obtaining the approval of
the FCC for any action or transaction contemplated by this Agreement or any
other Operative Document for which such approval is required by law.

         (i) Such Grantor shall cause all of its equipment constituting
Collateral to be operated and maintained in accordance with any applicable
manufacturer's manuals or instructions and the requirements of its insurance
policies. Such Grantor, at its expense, shall maintain such equipment in good
condition, reasonable wear and tear excepted, and will comply with all laws,
ordinances and regulations to which the use and operation of such equipment may
be or become subject. Such obligation shall extend to repair and replacement of
any partial loss or damage to such equipment, regardless of the cause. If
maintenance is mandated by the manufacturer, such Grantor shall obtain and keep
in effect at all times during the Term maintenance service contracts with the
vendor of such equipment or suppliers approved by Lessor, such approval not to
be unreasonably withheld. All parts furnished in connection with such
maintenance or repair shall immediately become part of such equipment. All such
maintenance, repair and replacement services shall be immediately paid for and
discharged by such Grantor with the result that no lien will attach to such
equipment. Only qualified personnel of such Grantor or qualified contract
personnel shall operate such equipment. Such equipment shall be used only for
the purposes for which it was designed. Upon prior written notice to Lessor,
such Grantor may make improvements, modifications or additions to such
equipment; provided, that if such improvements, modifications or additions are
not capable of being removed without causing material damage to such equipment,
then Lessor's prior written consent shall be required. Upon the return of such
equipment, such Grantor shall, at its expense, restore such equipment to the
original configuration in accordance with the manufacturer's

                                      -15-
<PAGE>

specifications; provided, that, with Lessor's prior written consent, such
Grantor may return such equipment as so improved, modified or added to.

         12. Bank's Rights Regarding Collateral. At any time and from time to
time, Bank may, to the extent necessary or desirable to protect the security
hereunder, but Bank shall not be obligated to: (a) (whether or not a Default has
occurred) itself or through its representatives, at its own expense, upon
reasonable notice and at such reasonable times during usual business hours,
visit and inspect any of the Grantors' properties and examine and make abstracts
from any of its books and records at any reasonable time and as often as may
reasonably be desired and discuss the business, operations, properties and
financial and other condition of any of the Grantors with officers of such
Grantors and with their accountants or (b) if an Event of Default has occurred
and is continuing, at the expense of the Grantors, perform any obligation of any
of the Grantors under this Agreement. At any time and from time to time, at the
expense of the Grantors, Bank may, to the extent necessary or desirable to
protect the security hereunder, but Bank shall not be obligated to: (i) notify
obligors of the Collateral that the Collateral has been pledged as security to
Bank; (ii) after an Event of Default has occurred and is continuing, at any time
and from time to time request from obligors of the Collateral, in the name of
the applicable Grantor or in the name of Bank, information concerning the
Collateral and the amounts owing thereon; and (iii) after an Event of Default
has occurred and is continuing, direct obligors under the contracts included in
the Collateral to direct their performance to Bank. Each Grantor shall keep
proper books and records and accounts in which full, true and correct entries in
conformity with GAAP and all applicable laws (including without limitation, all
applicable regulations, rules and orders) shall be made of all material dealings
and transactions pertaining to the Collateral. Bank shall at all reasonable
times on reasonable notice have full access to and the right to audit any and
all of Grantors' books and records pertaining to the Collateral, and to confirm
and verify the value of the Collateral. Bank shall not be under any duty or
obligation whatsoever to take any action to preserve any rights of or against
any prior or other parties in connection with the Collateral, to exercise any
voting rights or managerial rights with respect to any Collateral or to make or
give any presentments for payment, demands for performance, notices of
non-performance, protests, notices of protest, notices of dishonor or notices of
any other nature whatsoever in connection with the Collateral or the
Obligations. Bank shall not be under any duty or obligation whatsoever to take
any action to protect or preserve the Collateral or any rights of the Grantors'
therein, or to make collections or enforce payment thereon, or to participate in
any foreclosure or other proceeding in connection therewith. Nothing contained
herein or in any consent shall constitute an assumption by Bank of any of the
Grantors' obligations under the contracts assigned hereunder unless Bank shall
have given written notice to the counterpart to such assigned contract of Bank's
intention to assume such contract. Each Grantor shall continue to be liable for
performance of its obligations under such contracts.

         13. Collections on the Collateral. Except as provided to the contrary
in the Credit Agreement, each Grantor shall have the right to use and to
continue to make collections on and receive dividends and other proceeds of all
of the Collateral in the ordinary course of business so long as no Event of
Default shall have occurred and be continuing. Upon the occurrence and during
the continuance of an Event of Default, at the option of Bank, each Grantor's
right to make collections on and receive dividends and other proceeds of the
Collateral and to use or

                                      -16-
<PAGE>

dispose of such collections and proceeds shall terminate, and any and all
dividends, proceeds and collections, including all partial or total prepayments,
then held or thereafter received on or on account of the Collateral will be held
or received by such Grantor in trust for Bank and immediately delivered in kind
to Bank (duly endorsed to Bank, if required), to be applied to the obligations
or held as Collateral, as Bank shall elect. Upon the occurrence and during the
continuance of an Event of Default, Bank shall have the right at all times to
receive, receipt for, endorse, assign, deposit and deliver, in the name of any
of the Grantors, any and all checks, notes, drafts and other instruments for the
payment of money constituting proceeds of or otherwise relating to the
Collateral; and each Grantor hereby authorizes Bank to affix, by facsimile
signature or otherwise, the general or special endorsement of such Grantor, in
such manner as Bank shall deem advisable, to any such instrument in the event
the same has been delivered to or obtained by Bank without appropriate
endorsement, and Bank and any collecting bank are hereby authorized to consider
such endorsement to be a sufficient, valid and effective endorsement by such
Grantor, to the same extent as though it were manually executed by the duly
authorized representative of such Grantor, regardless of by whom or under what
circumstances or by what authority such endorsement actually is affixed, without
duty of inquiry or responsibility as to such matters, and such Grantor hereby
expressly waives demand, presentment, protest and notice of protest or dishonor
and all other notices of every kind and nature with respect to any such
instrument.

         14. Possession of Collateral by Bank. All the Collateral now,
heretofore or hereafter delivered to Bank shall be held by Bank in its
possession, custody and control. Upon the occurrence and during the continuance
of an Event of Default, whenever any of the Collateral is in Bank's possession,
custody or control, Bank may use, operate and consume the Collateral, whether
for the purpose of preserving and/or protecting the Collateral, or for the
purpose of performing any of the Grantors' obligations with respect thereto, or
otherwise so long as consistent with the Operative Documents or transactions
contemplated thereby. Bank may at any time deliver or redeliver the Collateral
or any part thereof to the Grantors, and the receipt of any of the same by the
Grantors shall be complete and full acquittance for the Collateral so delivered,
and Bank thereafter shall be discharged from any liability or responsibility
arising after such delivery to the Grantors. So long as Bank exercises
reasonable care and complies with Section 9207 of the UCC with respect to any
Collateral in its possession, custody or control, Bank shall have no liability
for any loss of or damage to any Collateral, and in no event shall Bank have
liability for any diminution in value of Collateral occasioned by economic or
market conditions or events.

         15. Remedies. Provided that nothing contained in this Agreement shall
be construed to give Bank or any purchaser of the Collateral the right to
operate or control any aspect of the business of any of the Grantors that
requires an FCC License without the prior consent of the FCC, to the extent
required by law or the terms of any FCC License or the FCC Rules:

         (a) Rights Upon Event of Default. Upon the occurrence and during the
continuance of an Event of Default, the Grantors shall be in default hereunder
and, subject to applicable law, Bank shall have, in any jurisdiction where
enforcement is sought, in addition to all other rights
and remedies that Bank

                                      -17-
<PAGE>

may have under this Agreement and under applicable laws or in equity, all rights
and remedies of a secured party under the Uniform Commercial Code as enacted in
any such jurisdiction in effect at that time, and in addition the following
rights and remedies, all of which may be exercised with or without further
notice to the Grantors except such notice as may be specifically required by
applicable law: (i) to foreclose the Liens and security interests created
hereunder or under any other Operative Document by any available judicial
procedure or without judicial process; (ii) to enter any premises where any
Collateral may be located for the purpose of securing, protecting, inventorying,
appraising, inspecting, repairing, preserving, storing, preparing, processing,
taking possession of or removing the same; (iii) to sell, assign, lease or
otherwise dispose of any Collateral or any part thereof, either at public or
private sale or at any broker's board, in lot or in bulk, for cash, on credit or
otherwise, with or without representations or warranties and upon such terms as
shall be commercially reasonable; (iv) to notify obligors on the Collateral that
the Collateral has been assigned to Bank and that all payments thereon, or
performance with respect thereto, are to be made directly and exclusively to
Bank; (v) to collect by legal proceedings or otherwise all dividends,
distributions, interest, principal or other sums now or hereafter payable upon
or on account of the Collateral; (vi) to enter into any extension,
reorganization, disposition, merger or consolidation agreement, or any other
agreement relating to or affecting the Collateral, and in connection therewith
Bank may deposit or surrender control of the Collateral and/or accept other
property in exchange for the Collateral as Bank reasonably deems appropriate and
is commercially reasonable; (vii) to settle, compromise or release, on terms
acceptable to Bank, in whole or in part, any amounts owing on the Collateral
and/or any disputes with respect thereto; (viii) to extend the time of payment,
make allowances and adjustments and issue credits in connection with the
Collateral in the name of the applicable Grantor for the benefit of Bank; (ix)
to enforce payment and prosecute any action or proceeding with respect to any or
all of the Collateral and take or bring, on behalf of itself or in the name of
the applicable Grantor, any and all steps, actions, suits or proceedings deemed
necessary or reasonably desirable by Bank to effect collection of or to realize
upon the Collateral, including any judicial or nonjudicial foreclosure thereof
or thereon, and each Grantor specifically consents to any nonjudicial
foreclosure of any or all of the Collateral or any other action taken by Bank
which may release any obligor from personal liability on any of the Collateral,
and each Grantor waives, to the extent permitted by applicable law, any right to
receive notice of any public or private judicial or nonjudicial sale or
foreclosure of any security or any of the Collateral, and any money or other
property received by Bank in exchange for or on account of the Collateral,
whether representing collections or proceeds of Collateral, and whether
resulting from voluntary payments or foreclosure proceedings or other legal
action taken by Bank or any of the Grantors, may be applied by Bank, without
notice to the Grantors, to the Obligations in such order and manner as Bank in
their sole discretion shall determine; (x) to insure, protect and preserve the
Collateral; (xi) to exercise all rights, remedies, powers or privileges provided
under any of the Operative Documents; and (xii) to remove, from any premises
where the same may be located, the Collateral and any and all documents,
instruments, files and records, and any receptacles and cabinets containing the
same, relating to the Collateral, and Bank may, at the cost and expense of the
Grantors, use such of its supplies, equipment, facilities and space at its
places of business as may be necessary or appropriate to properly administer,
process, store, control, prepare for sale or disposition and/or sell or dispose
of the Collateral or to properly administer and control the handling of
collections and realizations thereon, and Bank shall be deemed to have a
rent-free

                                      -18-
<PAGE>

tenancy of any premises of the Grantors for such purposes and for such
periods of time as reasonably required by Bank. So long as an Event of Default
has occurred and is continuing, each Grantor will, at Bank's request, assemble
the Collateral and make it available to Bank at places which Bank may designate,
whether at the premises of such Grantor or elsewhere, and will make available to
Bank, free of cost, all premises, equipment and facilities of such Grantor for
the purpose of Bank's taking possession of the Collateral or storing the same or
removing or putting the Collateral in salable form or selling or disposing of
the same.

         (b) Possession by Bank. Upon the occurrence and during the continuance
of an Event of Default, Bank also shall have the right, without notice or
demand, either in person, by Bank or by a receiver to be appointed by a court in
accordance with the provisions of applicable law (and each Grantor hereby
expressly consents, to the fullest extent permitted by applicable law, upon the
occurrence and during the continuance of an Event of Default to the appointment
of such a receiver), and, to the extent permitted by applicable law, without
regard to the adequacy of any security for the Obligations, to take possession
of the Collateral or any part thereof and to collect and receive the rents,
issues, profits, income and proceeds thereof. The taking possession of the
Collateral by Bank shall not cure or waive any Event of Default or notice
thereof or invalidate any act done pursuant to such notice. The rights, remedies
and powers of any receiver appointed by a court shall be as ordered by said
court.

         (c) Sale of Collateral. Any public or private sale or other disposition
of the Collateral may be held at any office of Bank, or at the Grantors' places
of business, or at any other place permitted by applicable law, and without the
necessity of the Collateral being within the view of prospective purchasers.
Bank may direct the order and manner of sale of the Collateral, or portions
thereof, as it in its sole and absolute discretion may determine provided such
sale is commercially reasonable, and each Grantor expressly waives, to the
extent permitted by applicable law, any right to direct the order and manner of
sale of any Collateral. Bank or any Person acting on Bank's behalf may bid and
purchase at any such sale or other disposition. In furtherance of Bank's rights
hereunder, each Grantor hereby grants to Bank an irrevocable, non-exclusive
license (exercisable without royalty or other payment by Bank) to use, license
or sublicense any patent, trademark, trade name, copyright or other intellectual
property in which Grantor now or hereafter has any right, title or interest
together with the right of access to all media in which any of the foregoing may
be recorded or stored; provided, however, that such license shall only be
exercisable in connection with the disposition of Collateral upon Bank's
exercise of its remedies hereunder.

         (d) Notice of Sale. Unless the Collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market, Bank will give the Grantors reasonable notice of the time and place of
any public sale thereof or of the time on or after which any private sale
thereof is to be made. The requirement of reasonable notice conclusively shall
be met if: (i) such notice is mailed, certified mail, postage prepaid, to the
Grantors at their addresses set forth on the signature page hereto or delivered
or otherwise sent to the Grantors, at least five (5) Business Days before the
date of the sale or (ii) if Grantors have previously executed any applications
for consent to the assignment of any FCC Licenses or for consent to the transfer
of control of any holder of such licenses. Each Grantor expressly waives, to the

                                      -19-
<PAGE>

fullest extent permitted by applicable law, any right to receive notice of any
public or private sale of any Collateral or other security for the Obligations
except as expressly provided for in this paragraph. Bank shall not be obligated
to make any sale of the Collateral if it shall determine not to do so regardless
of the fact that notice of sale of the Collateral may have been given. Bank may,
without notice or publication, except as required by applicable law, adjourn the
sale from time to time by announcement at the time and place fixed for sale, and
such sale may, without further notice (except as required by applicable law), be
made at the time and place to which the same was so adjourned.

         (e) Private Sales. With respect to any Collateral consisting of
securities, partnership interests, limited liability company interests, joint
venture interests or the like, and whether or not any of such Collateral has
been effectively registered under the Securities Act of 1933, as amended, or
other applicable laws, Bank may, in its sole and absolute discretion, sell all
or any part of such Collateral at private sale in such manner and under such
circumstances as Bank may deem necessary or advisable in order that the sale may
be lawfully conducted in a commercially reasonable manner. Without limiting the
foregoing, Bank may (i) approach and negotiate with a limited number of
potential purchasers, and (ii) restrict the prospective bidders or purchasers to
persons who will represent and agree that they are purchasing such Collateral
for their own account for investment and not with a view to the distribution or
resale thereof. In the event that any such Collateral is sold at private sale,
each Grantor agrees to the extent permitted by applicable law that if such
Collateral is sold for a price which is commercially reasonable, then (A) the
Grantors shall not be entitled to a credit against the Obligations in an amount
in excess of the purchase price, and (B) Bank shall not incur any liability or
responsibility to the Grantors in connection therewith, notwithstanding the
possibility that a substantially higher price might have been realized at a
public sale. Each Grantor recognizes that a ready market may not exist for such
Collateral if it is not regularly traded on a recognized securities exchange,
and that a sale by Bank of any such Collateral for an amount substantially less
than a pro rata share of the fair market value of the issuer's assets minus
liabilities may be commercially reasonable in view of the difficulties that may
be encountered in attempting to sell a large amount of such Collateral or
Collateral that is privately traded.

         (f) Title of Purchasers. Upon consummation of any sale of Collateral
hereunder, Bank shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each such purchaser at
any such sale shall hold the Collateral so sold absolutely free from any claim
or right upon the part of any Grantor or any other Person claiming through any
Grantor, and each Grantor hereby waives (to the extent permitted by applicable
laws) all rights of redemption, stay and appraisal which it now has or may at
any time in the future have under any rule of law or statute now existing or
hereafter enacted. If the sale of all or any part of the Collateral is made on
credit or for future delivery, Bank shall not be required to apply any portion
of the sale price to the Obligations until such amount actually is received by
Bank, and any Collateral so sold may be retained by Bank until the sale price is
paid in full by the purchaser or purchasers thereof. Bank shall not incur any
liability in case any such purchaser or purchasers shall fail to pay for the
Collateral so sold, and, in case of any such failure, the Collateral may be sold
again.

                                      -20-
<PAGE>

         (g) Disposition of Proceeds of Sale. The proceeds resulting from the
collection, liquidation, sale or other disposition of the Collateral shall be
applied, first, to the reasonable costs and expenses (including reasonable
attorneys' fees) of retaking, holding, storing, processing and preparing for
sale, selling, collecting and liquidating the Collateral, and the like; second,
to the satisfaction of all Obligations; and third, any surplus remaining after
the satisfaction of all Obligations, to be paid over to the Grantors or to
whomsoever may be lawfully entitled to receive such surplus.

         (h) Certain Waivers. To the extent permitted by applicable law, each
Grantor waives all claims, damages and demands against Bank arising out of the
repossession, retention or sale of the Collateral, or any part or parts thereof,
except to the extent any such claims, damages and awards arise out of the gross
negligence or willful misconduct of Bank.

         (i) Remedies Cumulative. The rights and remedies provided under this
Agreement are cumulative and may be exercised singly or concurrently, and are
not exclusive of any other rights and remedies provided by law or equity.

         (j) Compliance with Communications Act and FCC Rules and Regulations.

             (i) Notwithstanding any other provision of this Agreement, any
foreclosure on, sale, transfer or other disposition of, or the exercise of any
right to vote or consent with respect to, any of the Collateral as provided
herein or any other action taken or proposed to be taken by Bank hereunder which
would affect the operational, voting or other control of any entity holding an
FCC License shall be made in accordance with the Communications Act, the terms
of each FCC License, and any applicable FCC Rules, including any requirement
that there be a public or private sale.

             (ii) If an Event of Default shall have occurred and be continuing,
each Grantor shall take any action which Bank may request in the exercise of its
rights and remedies under this Agreement, including, but not limited to, the
execution and delivery of any documents requested by Bank, in order to transfer
and assign to Bank or to one or more third parties as Bank may designate,
including, but not limited to, a receiver or trustee or to a combination of the
foregoing, the Collateral for the purposes of a public or private sale. Upon the
occurrence and during the continuance of an Event of Default, each Grantor shall
further use its best efforts to assist in obtaining the approval of the FCC (and
that required by any other Governmental Authority) for any action or transaction
contemplated by this Agreement, including without limitation, the preparation,
execution and filing with the FCC of the assignor's or transferor's portion of
any application or applications for consent to the assignment of any FCC License
or transfer of control of any entity holding or controlling any FCC License as
may be necessary or appropriate under the FCC Rules. Each Grantor further agrees
that, because of the unique nature of its undertaking in this Section 13(j), the
same may be specifically enforced, and it hereby waives, and agrees to waive,
any claim or defense that Bank would have an adequate remedy at law for the
breach of this undertaking and any requirement for the posting of bond or other
security. Each Grantor hereby agrees that in the event that such Grantor has
been given five Business

                                      -21-
<PAGE>

Days' prior written notice telecopied to its telecopier number set forth on the
signature page hereto and such Grantor has not responded by executing any such
applications or other instruments, the clerk of the court of any court of
competent jurisdiction may execute in the place of such Grantor any application
or other instrument necessary or appropriate for the obtaining of such consent.
This Section 13(j) shall not be deemed to limit any other rights of Bank
available under applicable law and consistent with the Communications Act and
the applicable FCC Rules.

         16. Notice. Bank shall use reasonable efforts to give the Grantors
prior written notice of the exercise of any remedy provided for herein, provided
that the failure to give such notice shall not subject Bank to liability and
shall not affect the validity or exercise of any remedy hereunder.

         17. Bank Appointed Attorney-in-Fact. To the full extent permitted by
applicable law, including the Communications Act and FCC Rules, each Grantor
hereby irrevocably appoints Bank as such Grantor's attorney-in-fact, with full
authority in the place and stead of such Grantor, and in the name of such
Grantor, or otherwise, from time to time, in Bank's sole and absolute discretion
to do any of the following acts or things upon the occurrence and during the
continuance of an Event of Default: (a) to do all acts and things and to execute
all documents necessary or advisable to perfect and continue perfected the
security interests created by this Agreement and to preserve, maintain and
protect the Collateral; (b) to do any and every act which such Grantor is
obligated to do under this Agreement; (c) to prepare, sign, file and record, in
such Grantor's name, any financing statement covering the Collateral; (d) to
endorse and transfer the Collateral upon foreclosure by Bank; and (e) to file
any claims or take any action or institute any proceedings which Bank may
reasonably deem necessary or desirable for the protection or enforcement of any
of the rights of Bank with respect to any of the Collateral; provided, however,
that Bank shall be under no obligation whatsoever to take any of the foregoing
actions, and Bank shall have no liability or responsibility for any act or
omission (other than Bank's own gross negligence or willful misconduct) taken
with respect thereto.

         18. Costs and Expenses. Each Grantor shall pay on demand (i) all
reasonable fees and expenses, including reasonable attorneys' fees and expenses,
incurred by Bank in connection with the preparation, execution and delivery of,
and the exercise of its duties under, this Agreement (not to exceed $50,000),
(ii) all reasonable fees and expenses, including reasonable attorneys' fees and
expenses, incurred by Bank in connection with the preparation, execution and
delivery of amendments and waivers hereunder and (iii) all reasonable fees and
expenses, including reasonable attorneys' fees and expenses, incurred by Bank in
connection with the enforcement or attempted enforcement of this Agreement or
any of the Obligations or in preserving any of Bank's rights and remedies
(including, without limitation, all such fees and expenses incurred in
connection with any "workout" or restructuring affecting the Operative Documents
or the Obligations or any bankruptcy or similar proceeding involving such
Grantor, any other Grantor, Borrower or any of their Affiliates).

                                      -22-
<PAGE>

         19. Transfers and Other Liens. Each Grantor agrees that, except as
specifically permitted under the Credit Agreement or any other Operative
Document, it will not (a) sell, assign, exchange, transfer or otherwise dispose
of, or contract to sell, assign, exchange, transfer or otherwise dispose of, or
grant any option with respect to, any of the Collateral, or (b) create or permit
to exist any Lien upon or with respect to any of the Collateral, except for
legally permissible Liens in favor of Bank or otherwise permitted under the
Credit Agreement or any other Operative Document.

         20. Other Agreements; Governing Agreement. Nothing herein shall in any
way modify or limit the effect of terms or conditions set forth in any other
Operative Document executed by the Grantors or any other Person in connection
with the Obligations, but each and every term and condition hereof shall be in
addition thereto; provided, however, that in the event of inconsistency between
this Agreement and the Credit Agreement, the Credit Agreement shall govern.

         21. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement.

         22. Understandings With Respect to Waivers and Consents. Each Grantor
warrants and agrees that each of the waivers and consents set forth herein are
made with full knowledge of their significance and consequences, with the
understanding that events giving rise to any defense or right waived may
diminish, destroy or otherwise adversely affect rights which such Grantor
otherwise may have against Bank or others, or against any Collateral. If any of
the waivers or consents herein are determined to be unenforceable under
applicable law, such waivers and consents shall be effective to the maximum
extent permitted by law.

         23. Indemnity. Each Grantor shall indemnify, reimburse and hold Bank,
each of Bank's members, and each of their respective successors, assigns,
agents, officers, directors, shareholders, servants, agents and employees
harmless from and against all liabilities, losses, damages, actions, suits,
demands, claims of any kind and nature (including claims relating to
environmental discharge, cleanup or compliance), all costs and expenses
whatsoever to the extent they may be incurred or suffered by such indemnified
party in connection therewith (including reasonable attorneys' fees and
expenses), fines, penalties (and other charges of applicable governmental
authorities), licensing fees relating to any item of Collateral, damage to or
loss of use of property (including consequential or special damages to third
parties or damages to Borrower's property), or bodily injury to or death of any
person (including any agent or employee of Borrower) (each, a "Claim"), directly
or indirectly relating to or arising out of the use of the proceeds of the Loan,
the falsity of any representation or warranty of such Grantor or such Grantor's
failure to comply with the terms of this Agreement or any other Operative
Document during the Term. The foregoing indemnity shall cover, without
limitation, (i) any Claim in connection with a design or other defect (latent or
patent) in any item of equipment included in the Collateral, (ii) any Claim for
infringement of any patent, copyright, trademark or other intellectual property
right, (iii) any Claim resulting from the presence on or under or

                                      -23-
<PAGE>

the escape, seepage, leakage, spillage, discharge, emission or release of any
Hazardous Materials on the premises of such Grantor, including any Claims
asserted or arising under any Environmental Law, or (iv) any Claim for
negligence or strict or absolute liability in tort; provided, however, that such
Grantor shall not indemnify Bank for any liability incurred by Bank as a result
of Bank's gross negligence or willful misconduct. Such indemnities shall
continue in full force and effect, notwithstanding the expiration or termination
of this Agreement. Upon an indemnitee's written demand, such Grantor shall
assume and diligently conduct, at its sole cost and expense, the entire defense
of Bank, each of its members, and each of their respective agents, employees,
directors, officers, shareholders, successors and assigns, using counsel
reasonably acceptable to such indemnitee against any indemnified Claim. Such
Grantor shall not settle or compromise any Claim against or involving Bank
without first obtaining Bank's written consent thereto, which consent shall not
be unreasonably withheld. If Bank elects to assume its own defense in connection
with an indemnified Claim, then Bank shall not settle or compromise such Claim
without first obtaining such Grantor's written consent thereto, which consent
shall not be unreasonably withheld, provided that if such Grantor does not
consent thereto, then Borrower shall post security or a bond in the amount of
such Claim for the benefit of the Bank.

         24. Amendments, Etc. No amendment or waiver of any provision of this
Agreement nor consent to any departure by the Grantors herefrom (other than
supplements to the Schedules hereto in accordance with the terms of this
Agreement) shall in any event be effective unless the same shall be in writing
and made in accordance with of the Credit Agreement, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

         25. Notices. All notices and other communications provided for
hereunder shall be given in the manner and to the addresses set forth either in
the Credit Agreement or in the Guaranty dated as of even date herewith made by
the Grantors.

         26. Continuing Security Interest: Transfer of Notes; Termination. This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until indefeasible payment in full of
the Obligations and the termination or expiration of Bank's obligation to make
Loans under the Credit Agreement, (ii) be binding upon each Grantor, their
successors and assigns and (iii) inure, together with the rights and remedies of
Bank hereunder, to the benefit of Bank and any successor Bank, subject to the
terms and conditions of the Credit Agreement. Subject to the terms of the Credit
Agreement, any Bank may assign or otherwise transfer any Loan, or any rights in
Collateral held by it to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to such Bank or
Bank herein or otherwise. Nothing set forth herein or in any other Operative
Document is intended or shall be construed to give to any other party any right,
remedy or claim under, to or in respect of this Agreement or any other Operative
Document or any Collateral. The Grantors' successors and assigns shall include,
without limitation, a receiver, trustee or debtor-in-possession thereof or
therefor, provided that, except as otherwise permitted under the Credit
Agreement or any other Operative Document, none of the rights or

                                      -24-
<PAGE>

obligations of the Grantors hereunder may be assigned or otherwise transferred
without the prior written consent of Bank.

         27. Release of the Grantors. This Agreement and all obligations of each
Grantor hereunder and all security interests granted hereby shall be released
and terminated when all Obligations have been paid in full in cash and when
Bank's obligation to make Loans under the Credit Agreement has expired or have
otherwise been terminated. Upon such release and termination of all Obligations
and the security interest hereunder, all rights in and to the Collateral granted
or pledged by the Grantors hereunder shall automatically revert to the Grantors,
and Bank shall return any pledged Collateral in their possession to the
Grantors, or to the Person or Persons legally entitled thereto, and shall
endorse, execute, deliver, record and file all instruments and documents, and do
all other acts and things, reasonably required for the return of the Collateral
to the Grantors, or to the Person or Persons legally entitled thereto, and to
evidence or document the release of the interests of Bank arising under this
Agreement, all as reasonably requested by, and at the sole expense of, the
Grantors.

         28. Governing Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS OTHERWISE REQUIRED
BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED
BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF CALIFORNIA ARE GOVERNED BY
THE LAWS OF SUCH JURISDICTION.

         29. Jury Trial. EACH GRANTOR AND BANK, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO
ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT.

         30. Limitation of Liability. NO CLAIM MAY BE MADE BY ANY GRANTOR
AGAINST BANK OR THE MEMBERS, AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES,
ATTORNEYS OF BANK FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES
IN RESPECT OF ANY CLAIM (WHETHER BASED UPON ANY BREACH OF CONTRACT, TORT, BREACH
OF STATUTORY DUTY OR ANY OTHER THEORY OF LIABILITY) ARISING OUT OF OR RELATED TO
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ANY ACT, OMISSION OR EVENT
OCCURRING IN CONNECTION THEREWITH AND EACH GRANTOR HEREBY WAIVES, RELEASES AND
AGREES NOT TO SUE UPON ANY CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT NOW
ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

         31. Covenant Not to Issue Uncertificated Securities. Each Grantor
covenants to Bank that any Pledged Securities held by them shall be in
certificated form (as contemplated by Article 8 of the Uniform Commercial Code),
and that it will not seek to convert all or any part of

                                      -25-
<PAGE>

any Pledged Securities into uncertificated form (as contemplated by Article 8 of
the Uniform Commercial Code).

         32. Covenant Not to Dilute Interests of Secured Party in Securities.
Each Grantor represents, warrants and covenants to Bank that it will (a) not at
any time cause or permit any Subsidiary that is an issuer of Pledged Securities
to issue any capital stock or any warrant options or other rights to acquire any
capital stock, other than to such Grantor or as otherwise permitted under the
Credit Agreement and (b) pledge to Bank in accordance with the terms hereof,
immediately upon its acquisition (directly or indirectly) thereof, any and all
shares of stock or other securities of each issuer of Pledged Securities.

         33. Pledged Limited Liability Company Interests/Covenant Not to Dilute.
Each Grantor represents, warrants and covenants to Bank that it will (a) not at
any time cause or permit any Pledged Entities to issue any additional membership
interests or any other rights or options to acquire any additional limited
liability company interests, other than to the Grantors or as otherwise
permitted under the Credit Agreement, and (b) pledge to Bank in accordance with
the terms hereof, immediately upon its acquisition (directly or indirectly)
thereof, any and all additional Limited Liability Company Interests of each
Pledged Entity.

         34. Pledged Partnership Interests/Covenant Not to Dilute. Each Grantor
represents, warrants and covenants to Bank that it will (a) not at any time
cause or permit any Pledged Partnership Entities to issue any additional
partnership interests or any other rights or options to acquire any additional
partnership interests, other than to the Grantors or as otherwise permitted
under the Credit Agreement, and (b) pledge to Bank in accordance with the terms
hereof, immediately upon its acquisition (directly or indirectly) thereof, any
and all additional Partnership Interests of each Pledged Partnership Entity.

                                      -26-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto, by their officers
thereunto duly authorized, have executed this Agreement as of the day and year
first above written.

                                       CHADMOORE WIRELESS GROUP, INC.

                                       By: /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       CHADMOORE COMMUNICATIONS, INC.

                                       By: /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT TANNER, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT BEACON HILL, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                      -27-
<PAGE>

                                       PTT OF NEVADA, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       CMRS SYSTEMS, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                     CHADMOORE COMMUNICATIONS OF TENNESSEE, INC.

                                       By:  /s/ Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT COMMUNICATIONS OF RICHMOND, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT MAPLE, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                      -28-
<PAGE>

                                       PTT COMMUNICATIONS OF HUNTSVILLE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT BURTON, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT COMMUNICATIONS OF FORT WAYNE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF ROANOKE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT TRISTAN, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                      -29-
<PAGE>

                                       PTT COMMUNICATIONS OF AUSTIN, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF JACKSONVILLE, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF VIRGINIA BEACH,LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT ROSELAND, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT ARTINA, INC.

                                      -30-
<PAGE>

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT FRANKLIN, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT CHACO, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       800 SMR NETWORK, INC.

                                       By:  /s/Robert W. Moore
                                       Name:  Robert W. Moore
                                       Title:  President

                                       PTT COMMUNICATIONS OF BATON ROUGE
                                       LIMITED

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF LAKE CHARLES,  LLC

                                      -31-
<PAGE>

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       PTT COMMUNICATIONS OF BAY CITY, LLC

                                       By:  /s/Rick D. Rhodes
                                       Name:  Rick D. Rhodes
                                       Title:  Manager

                                       BARCLAYS BANK PLC

                                       By:  /s/Philip Capparis
                                       Name:  Philip Capparis
                                       Title:  Director

                                      -32-
<PAGE>

                                   Exhibit A-1
                                   -----------
To Security Agreement

                              FORM OF PLEDGE NOTICE

                             [Letterhead of Grantor]

                                                                    [Date]

TO:      [Name of Pledged Entity]

         Notice is hereby given that, pursuant to the Security Agreement (a true
and correct copy of which is attached hereto), dated as of [Date] (as amended,
modified or supplemented from time to time in accordance with the terms thereof,
the "Security Agreement"), among [NAME OF GRANTOR] (the "Grantor"), the other
pledgors from time to time party thereto and BARCLAYS BANK PLC(the "Bank"), the
Grantor has pledged and assigned to the Bank, and granted to the Bank a
continuing security interest in, all right, title and interest of the Grantor,
whether now existing or hereafter arising or acquired, as a [[limited partner]
[general partner]] [member] in [NAME OF PLEDGED ENTITY] (the ["Partnership"]
["LLC"]), and in, to and under the [TITLE OF APPLICABLE AGREEMENT] (the
"[Partnership] [LLC] Agreement"), including, without limitation:

         (i) all the capital of the [Partnership] [LLC] and the Grantor's
interest in all profits, income, surplus, losses, [Partnership] [LLC] assets and
other distributions to which the Grantor shall at any time be entitled in
respect of such [Partnership] [Membership] interest;

         (ii) all other payments due or to become due to the Grantor in respect
of such [partnership [limited liability company] interest, whether under the
[Partnership] [LLC] Agreement or otherwise, whether as contractual obligations,
damages, insurance proceeds or otherwise;

         (iii) all of its claims, rights, powers, privileges, authority,
options, security interest, liens and remedies, if any, under the [Partnership]
[LLC] Agreement or at law or otherwise in respect of such [Partnership]
[Membership] Interest;

                                      -33-
<PAGE>

         (iv) all present and future claims, if any, of the Grantor against the
[Partnership [LLC] for moneys loaned or advanced, for services rendered or
otherwise;

         (v) all of the Grantor's rights under the [Partnership] [LLC] Agreement
or at law to exercise and enforce every right, power, remedy, authority, option
and privilege of the Grantor relating to the [Partnership] [Membership]
Interest, including any power to terminate, cancel or modify the [Partnership]
[LLC] Agreement, to execute any instruments and to take any and all other action
on behalf of and in the name of the Grantor in respect of the [Partnership]
[Membership] Interest and the [Partnership] [LLC], to make determinations, to
exercise any election (including, but not limited, election of remedies) or
option or to give or receive any notice, consent, amendment, waiver or approval,
together with full power and authority to demand, receive, enforce, collect or
receipt for any of the foregoing, to enforce or execute any checks, or other
instruments or orders, to file any claims and to take any action in connection
with any of the foregoing;

         (vi) all other property hereafter delivered in substitution for or in
addition to any of the foregoing, all certificates and instruments representing
or evidencing such other property and all cash, securities, interest, dividends,
rights and other property at any time and from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all thereof;
and

         (vii) to the extent not otherwise included, all proceeds of any or all
of the foregoing.

         Pursuant to the Security Agreement, the [Partnership] [LLC] is hereby
authorized and directed to register the Grantor's pledge to the Bank of the
interest of the Grantor on the [Partnership's] [LLC's] books.

         The Grantor hereby requests the [Partnership] [LLC] to indicate the
[Partnership's] [LLC's] acceptance of this Notice and consent to and
confirmation of its terms and provisions by signing a copy hereof where
indicated on the attached page and returning the same to the Bank.

                                        [NAME OF GRANTOR]
                                        By
                                          --------------------------------------
                                        Name:
                                        Title:

                                      -34-
<PAGE>
                                   Exhibit A-2
                                   -----------
To Security Agreement

                          FORM OF ISSUER ACKNOWLEDGMENT
                          -----------------------------

         [NAME OF PLEDGED ENTITY] (the ["Partnership"] ["LLC"]) hereby
acknowledges receipt of a copy of the assignment by [NAME OF GRANTOR]
("Grantor") of its interest under the [TITLE OF APPLICABLE AGREEMENT] (the
"[Partnership] [LLC] Agreement") pursuant to the terms of the Security
Agreement, dated as of [Date] (as amended, modified or supplemented from time to
time in accordance with the terms thereof, the "Security Agreement"), among the
Grantor, the other grantors from time to time party thereto, and BARCLAYS BANK
PLC (the "Bank"). The undersigned hereby further confirms (i) the registration
of the Grantor's pledge of its interest to the Bank on behalf of the Secured
Creditors on the [Partnership's] [LLC's] books and (ii) upon receipt from the
Bank of a notice stating that an "Event of Default" has occurred and is
continuing, subject to applicable law, including the Communications Act and the
FCC Rulees, the undersigned shall only comply with instructions originated by
the Bank with respect to the pledge of the interest referred to above
notwithstanding contrary instructions given by any other person or entity,
including the Grantor until such time as otherwise notified by the Bank.

Dated:   _______, ____

                                        [NAME OF PLEDGED ENTITY]
                                        BY
                                           -------------------------------------
                                        Name:
         Title:

<PAGE>

                                    Exhibit B
                                    ---------

                              To Security Agreement
                              ---------------------

                            [SEPARATE INSTRUMENT FOR
                            EACH FORM OF COLLATERAL]

         GRANT OF SECURITY INTEREST

                        [PATENTS][TRADEMARKS][COPYRIGHTS]

THIS GRANT OF SECURITY INTEREST, dated as of ________________, 199_, is executed
by [GRANTOR], a [state of incorporation] corporation ("Grantor"), in favor of
BARCLAYS BANK PLC ("Secured Party").

         A. Pursuant to a Senior Secured Credit Agreement, dated as of [Date]
(the "Credit Agreement"), among Chadmoore Wireless Group, Inc. ("Chadmoore"),
the subsidiaries of Chadmoore party thereto (collectively, the "Subsidiaries,"
and together with Chadmoore, the "Borrowers") and Secured Party, Secured Party
has agreed to extend certain credit facilities to Borrowers upon the terms and
subject to the conditions set forth therein.

         [B. Grantor owns the letters patent, and/or applications for letters
patent, of the United States, more particularly described on Schedules 1-A and
1-B annexed hereto as part hereof (collectively, the "Patents");]

         [B. Grantor has adopted, used and is using the trademarks, more
particularly described on Schedules 1-A and 1-B annexed hereto as part hereof,
which trademarks are registered or subject to an application for registration in
the United States Patent and Trademark Office (collectively, the "Trademarks");]

         [B. Grantor owns the copyrights registered in the United States
Copyright Office, more particularly described on Schedule 1-A annexed hereto as
part hereof (collectively, the "Copyrights");]

         C. Grantor has entered into a Security Agreement dated the date hereof
(the "Security Agreement") in favor of Secured Party; and

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Patents, together with any reissue, continuation, continuation-in-part or
extension thereof, and all proceeds thereof, including any and all causes of
action which may exist by reason of infringement thereof for the full term of
the Patents (the "Collateral"), to secure the prompt payment, performance and
observance of the Obligations, as defined in the Security Agreement;

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Trademarks, together with the goodwill of the business symbolized by the
Trademarks and the customer lists and records related to the Trademarks

<PAGE>

and the applications and registrations thereof, and all proceeds thereof,
including any and all causes of action which may exist by reason of infringement
thereof (the "Collateral"), to secure the payment, performance and observance of
the Obligations, as defined in the Security Agreement;]

         [D. Pursuant to the Security Agreement, Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Copyrights and the registrations thereof, together with any renewals or
extensions thereof, and all proceeds thereof, including any and all causes of
action which may exist by reason of infringement thereof for the full term of
the Copyrights (the "Collateral"), to secure the prompt payment, performance and
observance of the Obligations, as defined in the Security Agreement;]

         NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged, Grantor does hereby further grant to Secured Party a
security interest in the Collateral to secure the prompt payment, performance
and observance of the Obligations.

Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the security interest in the Collateral granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are hereby incorporated herein by reference as if fully set
forth herein.

         Secured Party's address is:                 BARCLAYS BANK PLC
                                                     222 Broadway
                                                     New York, NY  10038

<PAGE>

IN WITNESS WHEREOF, Grantor has caused this instrument to be executed as of the
day and year first above written.

[GRANTOR]

         By:

         Name:
              ---------------------------------------

Title:
      --------------------------------------

STATE OF NEVADA                     )
                                            )
COUNTY OF                           )
          --------------------------

         On _______________________________ __________, 199___ before me,
_________________________, personally appeared , personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in her/her/their authorized capacity(ies), and
that by his/her/their signature(s) on such instrument the person or entity on
behalf of which the person(s) acted executed the instrument.

              WITNESS my hand and official seal.

              Signature                                                 (Seal)
                        ----------------------------------Exhibit 10.4
================================================================================

                          SUBORDINATED CREDIT AGREEMENT

                           Dated as of August 31, 2000

                                      among

                                BARCLAYS BANK PLC
                                  222 Broadway
                               New York, NY 10038

                                     as Bank

                                       and

                         CHADMOORE WIRELESS GROUP, INC.
                             a Colorado corporation
                             2875 East Patrick Lane
                             Las Vegas, Nevada 89120

              (AND ANY OF ITS SUBSIDIARIES WHO MAY BECOME PARTIES)
                                  as Borrowers

================================================================================

<PAGE>
         This SUBORDINATED  CREDIT AGREEMENT,  dated as of August 31, 2000 (this
"Agreement"), is entered into by and among BARCLAYS BANK PLC ("Bank"), CHADMOORE
WIRELESS  GROUP,  INC.  ("Chadmoore"),  and any of its  SUBSIDIARIES  LISTED  ON
SCHEDULE  1 HERETO  (collectively,  the  "Chadmoore  Subsidiaries")  who  become
parties pursuant to Section  6.01(g)(i) (such Chadmoore  Subsidiaries,  together
with Chadmoore, the "Borrowers").

                                    ARTICLE I

                                 INTERPRETATION

1.01. Certain  Definitions.  Unless otherwise indicated in this Agreement or any
other Operative  Document,  the following terms,  when used in this Agreement or
any other Operative Document, shall have the following respective meanings:

         "Adjusted Base Rate" means,  for any day, a rate per annum equal to the
greater  of (a) the Prime Rate in effect on such day and (b) the  Federal  Funds
Effective  Rate in effect on such day plus 1/2 of 1%. Any change in the Adjusted
Base Rate due to a change in the Prime Rate or the Federal Funds  Effective Rate
shall be effective  from and including the effective  date of such change in the
Prime Rate or the Federal Effective Rate, respectively.

         "Adjusted  Consolidated  Tangible Net Worth" shall mean, as of any date
of  determination,  the sum of the capital stock and additional  paid-in capital
plus  retained  earnings (or minus  accumulated  deficit) of  Chadmoore  and its
Subsidiaries  minus  intangible  assets,  on a consolidated  basis determined in
accordance with GAAP, plus the aggregate book value of all FCC Licenses owned by
Chadmoore and its Subsidiaries.

         "Adjusted LIBO Rate" means, with respect to any Eurodollar Loan for any
Interest Period, an interest rate per annum (rounded upwards,  if necessary,  to
the  next  1/16 of 1%)  equal to (a) the LIBO  Rate  for  such  Interest  Period
multiplied by (b) the Statutory Reserve Rate.

         "Affiliate"  with respect to any Person,  shall mean (i) any  director,
officer or  employee of such  Person,  (ii) any Person  directly  or  indirectly
controlling  or  controlled by or under direct or indirect  common  control with
such Person, and (iii) any Person  beneficially  owning or holding 5% or more of
any class of voting  securities of such Person or any  corporation of which such
Person beneficially owns or holds, in the aggregate,  5% or more of any class of
voting  securities  The  term  "control"  means  the  possession,   directly  or
indirectly,  of the power to direct or cause the direction of the management and
policies of a Person,  whether  through the ownership of voting  securities,  by
contract or otherwise.  The term "Affiliate," when used herein without reference
to any Person, shall mean an Affiliate of Chadmoore.

         "Agreement"  has the  meaning  given to that  term in the  introductory
paragraph hereof.

         "Bank" has the meaning given to that term in the introductory paragraph
hereof.

         "Borrowers"  has the  meaning  given to that  term in the  introductory
paragraph hereof.

                                       -1-
<PAGE>

         "Business  Day"  shall mean any day other  than a  Saturday,  Sunday or
public  holiday  under  the laws of New York or Nevada or any other day on which
banking institutions are authorized or obligated to close in New York or Nevada.

         "Chadmoore"  has the  meaning  given to that  term in the  introductory
paragraph hereof.

         "Chadmoore  Subsidiaries"  has the  meaning  given to that  term in the
introductory paragraph hereof.

         "Change in Law" means (a) the adoption of any law,  rule or  regulation
after the date of this Agreement,  (b) any change in any law, rule or regulation
or in the  interpretation or application  thereof by any Governmental  Authority
after the date of this  Agreement or (c) compliance by Bank (or, for purposes of
Section 2.06, by any lending office of Bank or by such Bank's  holding  company,
if any) with any  request,  guideline  or  directive  (whether or not having the
force of law) of any  Governmental  Authority  made or issued  after the date of
this Agreement.

         "Claim" has the meaning given to that term in Section 10.03.

         "Collateral"  has  the  meaning  given  to that  term  in the  Security
Agreement.

         "Commitment Fee" has the meaning given to that term in Section 2.10.

         "Commitment  Termination Date" means the earlier of (i) March 30, 2002,
(ii) the date of the closing under the Nextel  Agreement,  (iii)  termination of
the Nextel  Agreement  pursuant  to the terms  thereof,  or (iv) the time when a
voluntary  case is commenced  by any  Borrower or a  proceeding  is commenced by
seeking a decree or order for relief in respect of any Borrower is instituted in
a court of competent jurisdiction under any applicable bankruptcy, insolvency or
similar law.

         "Communications  Act" shall  mean the  Communications  Act of 1934,  as
amended and the rules and regulations issued thereunder,  as in effect from time
to time.

         "Consolidated  Income Tax  Expense"  shall  mean,  with  respect to any
period, the provision for federal,  state, local, foreign and other income taxes
of  Chadmoore  and  its   Subsidiaries  for  such  period  as  determined  on  a
consolidated basis in accordance with GAAP.

         "Consolidated  Interest  Expense"  shall  mean ,  with  respect  to any
period,  without  duplication,  the sum of (i) the interest expense of Chadmoore
and its  Subsidiaries  for such period as determined on a consolidated  basis in
accordance with GAAP,  including,  without  limitation,  (a) any amortization of
debt  discount,  (b)  the net  cost  under  interest  rate  hedging  arrangement
(including  any  amortization  of  discounts),  (c) the interest  portion of any
deferred payment obligation,  (d) all commissions,  discounts and other fees and
charges owed with respect to letters of credit and bankers' acceptance financing
and similar  transactions and (e) all capitalized interest and accrued interest,
(ii) the interest  component of capital leases paid, accrued and/or scheduled to
be paid or accrued by Chadmoore and its Subsidiaries during such period as

                                       -2-
<PAGE>

determined on a consolidated basis in accordance with GAAP, (iii) the portion of
any rental obligation in respect of any sale/leaseback  transaction allocable to
interest  expense  (determined as if such were treated as a capital lease),  and
(iv) the amount of dividends and  distributions in respect of Preferred Stock or
Disqualified  Stock  paid by  Chadmoore's  Subsidiaries  to a Person  other than
Chadmoore or any Subsidiary of Chadmoore or by Chadmoore during such period.

         "Consolidated  Net Income" shall mean, with respect to any period,  the
net  income  (or  loss)  of  Chadmoore  and its  Subsidiaries  for  such  period
determined on a consolidated  basis in accordance  with GAAP,  adjusted,  to the
extent  included  in  calculating  such  consolidated  net  income  (or loss) by
excluding, without duplication,  (i) all extraordinary,  unusual or nonrecurring
gains or losses  and all gains or losses  from  sales or other  dispositions  of
assets out of the ordinary  course of business (net of taxes,  fees and expenses
relating to the  transaction  giving rise  thereto) for such  period,  (ii) that
portion of such net income (or loss)  derived from or in respect of  Investments
in Persons other than Chadmoore's Subsidiaries, except to the extent of any cash
dividends actually received by Chadmoore or a Subsidiary of Chadmoore  (subject,
in the  case  of any  Subsidiary,  to the  provisions  of  clause  (vi)  of this
definition); (iii) any gain or loss, net of taxes, realized upon the termination
of any employee  pension  benefit plan during such period,  (iv) that portion of
such net income (or loss) allocable to minority  interests in any Subsidiary for
such  period,  (v) net  income  (or  loss) of any  other  Person  combined  with
Chadmoore or any Subsidiary on a "pooling of interests"  basis  attributable  to
any  period  prior to the date of  combination  and (vi) the net  income  of any
Subsidiary  for such period to the extent that the  declaration  of dividends or
similar  distributions  by that  Subsidiary  of that  income  is not at the time
permitted,  directly or indirectly,  by operation of the terms of its charter or
any  agreement,   instrument,   judgment,   decree,   order,  statute,  rule  or
governmental regulations applicable to that Subsidiary or its stockholders.

         "Consolidated  Operating  Cash Flow"  shall mean,  with  respect to any
period,   Consolidated  Net  Income  for  such  period  (a)  increased  (without
duplication),  to the extent  deducted  in  arriving  at such  Consolidated  Net
Income, by the sum of (i) Consolidated  Income tax expense for such period; (ii)
Consolidated   Interest  Expense  for  such  period;  and  (iii)   depreciation,
amortization  and any other  non-cash items for such period of Chadmoore and its
Subsidiaries  (other than any non-cash item which  requires the accrual of, or a
reserve for, cash charges for any future period), including, without limitation,
amortization of capitalized debt issuance costs for such period,  all determined
on a  consolidated  basis in  accordance  with GAAP,  and (b)  decreased  by any
non-cash items (including non-recurring gains and non-recurring items of income)
to the extent they increased  Consolidated Net Income for such period (including
any partial or complete reversal of reserves taken in a prior period).

         "Consolidated  Total  Indebtedness"  shall  mean  as  of  any  date  of
determination,  an amount equal to the aggregate  amount of all  Indebtedness of
Chadmoore and its Subsidiaries outstanding as of such date of determination.

         "Credit Amount" shall mean the maximum amount that Bank is committed to
lend under the terms of this Agreement.

                                       -3-
<PAGE>

         "Current  Assets" shall mean the aggregate amount of the current assets
of Chadmoore and its Subsidiaries  which would be set forth on the balance sheet
of Chadmoore in accordance with GAAP.

         "Current  Liabilities"  shall mean the aggregate  amount of the current
liabilities  of Chadmoore and its  Subsidiaries  which would be set forth on the
balance  sheet of Chadmoore in accordance  with GAAP,  excluding (i) the current
portion  of the Loans  made  pursuant  to this  Agreement  and (ii) the  current
portion of Indebtedness to the Senior Lender.

         "Default"  shall mean any event  which with the  passing of time or the
giving of notice or both would become an Event of Default hereunder.

         "Disclosure  Schedule" shall mean the disclosure  schedule  attached as
Schedule 3 to the Senior Loan Agreement.

         "Disqualified  Stock"  means,  with respect to any Person,  any capital
stock  which,  by its terms (or by the terms of any  security  into  which it is
convertible  or for  which it is  exchangeable),  or upon the  happening  of any
event,  matures or becomes  mandatorily  redeemable,  pursuant to a sinking fund
obligation or otherwise,  or becomes exchangeable for Indebtedness at the option
of the  holder  thereof,  or  becomes  redeemable  at the  option of the  holder
thereof,  in whole or in part,  on or prior to the  final  maturity  date of the
Loans.

         "Environmental  Law" shall mean the Resource  Conservation and Recovery
Act  of  1987,  the  Comprehensive  Environmental  Response,   Compensation  and
Liability Act, and any other federal,  state,  local,  foreign or  international
statute,  law, ordinance,  code, rule,  regulation,  order, writ,  judgment,  or
decree (in each case having the force of law) (i) regulating, imposing liability
or standards of conduct  concerning the manufacture,  processing,  distribution,
use,  treatment,  storage,  disposal,  transport,  or handling of any  Hazardous
Material,  as now or at any time hereafter in effect,  or (ii) pertaining to the
protection of the health and safety of employees or the public.

         "Equity  Securities"  of any Person  shall  mean (a) all common  stock,
preferred stock,  participations,  shares, partnership interests or other equity
interests in and of such Person (regardless of how designated and whether or not
voting or non-voting) and (b) all warrants,  options and other rights to acquire
any of the foregoing.

         "ERISA" means the Employee  Retirement  Income Security Act of 1974, as
amended from time to time,  and including any rules or  regulations  promulgated
thereunder.

         "ERISA  Affiliate"  has  the  meaning  given  to that  term in  Section
3.01(m).

         "Event of Default" has the meaning given to that term in Section 9.01.

         "Facility"  shall mean any facility being operated by the Borrowers and
their  Subsidiaries  in connection  with the  management  and operation of their
business.

                                       -4-
<PAGE>

         "FCC" shall mean the Federal Communications Commission or any successor
thereto.

         "FCC  Licenses"  shall  mean  any  FCC  license,  permit,  certificate,
ordinance, approval or other authorization,  or any renewal or extension thereof
issued by the FCC.

         "FCC Rules" shall mean the rules, regulations and policies of the FCC.

         "Federal Funds Effective Rate" means, for any day, the weighted average
(rounded  upwards,  if  necessary,  to the  next  1/100  of 1%) of the  rates on
overnight Federal funds  transactions with members of the Federal Reserve System
arranged by Federal funds brokers,  as published on the next succeeding Business
Day by the  Federal  Reserve  Bank  of New  York,  or,  if  such  rate is not so
published for any day that is a Business Day, the average (rounded  upwards,  if
necessary,  to the  next  1/100 of 1%) of the  quotations  for such day for such
transactions received by the Bank from three Federal funds brokers of recognized
standing selected by it.

         "Federal  Reserve  Board"  means the Board of  Governors of the Federal
Reserve System or any successor thereto.

         "Financial  Statements"  shall  mean,  with  respect to any  accounting
period for any Person, statements of operations, retained earnings and cash flow
of such Person for such period,  and balance sheets of such Person as of the end
of such period,  setting forth in each case in comparative  form figures for the
corresponding  period in the preceding fiscal year if such period is less than a
full fiscal year or, if such period is a full fiscal year, corresponding figures
from the  preceding  fiscal  year,  all  prepared  in  reasonable  detail and in
accordance with GAAP.  Unless otherwise  indicated,  each reference to Financial
Statements  of any  Person  shall be  deemed  to refer to  Financial  Statements
prepared on a consolidated basis.

         "Funding  Date"  shall  mean  any date on which a Loan is made to or on
account of a Borrower under this Agreement.

         "GAAP"  shall  mean  generally  accepted   accounting   principles  and
practices  as in  effect in the  United  States  of  America  from time to time,
consistently applied.

         "Governmental  Authority" shall mean any domestic or foreign  national,
state or local government,  any political  subdivision  thereof, any department,
agency,  authority  or  bureau  of any of the  foregoing,  or any  other  entity
exercising  executive,  legislative,   judicial,  regulatory  or  administrative
functions of or pertaining to government.

         "Guarantor" has the meaning given in the Guaranty.

         "Guaranty" means the Guaranty in the form attached hereto as Exhibit C.

         "Hazardous Material" means any hazardous,  dangerous or toxic material,
pollutant, waste or other substance, whether solid, liquid or gaseous in nature,
which is  regulated  by any  federal,  state,  local,  foreign or  international
governmental authority.

                                       -5-
<PAGE>

         "Indebtedness" shall mean, with respect to Chadmoore or any Subsidiary,
the aggregate amount of, without duplication, (a) all obligations of such Person
for  borrowed  money,  (b) all  obligations  of such Person  evidenced by bonds,
debentures,   notes  or  other  similar  instruments,   (c)  all  non-contingent
reimbursement or payment obligations with respect to Surety Instruments, (d) all
obligations  with  respect to capital  leases,  (e) all  obligations  created or
arising  under any  conditional  sale or other title  retention  agreement  with
respect to property acquired by such Person,  (f) all obligations of such Person
to pay the  deferred  purchase  price of property or services  (excluding  trade
payables aged less than 180 days),  (g) all obligations or liabilities of others
secured by a lien on any asset of such Person, whether or not such obligation or
liability is assumed, (h) all obligations or liabilities of others guaranteed by
such Person;  and (i) any other obligations or liabilities which are required by
GAAP to be shown as debt on the balance sheet of such Person.  Unless  otherwise
indicated,  the term "Indebtedness"  shall include all Indebtedness of Chadmoore
and the Subsidiaries.

         "Interest  Payment  Date" means (a) with respect to any Base Rate Loan,
the  last  Business  Day of each  calendar  month  and (b) with  respect  to any
Eurodollar Loan, the last Business Day of the Interest Period  applicable to the
Borrowing  of  which  such  Loan is a party  and,  in the  case of a  Eurodollar
Borrowing  with an Interest  Period of more than three  months'  duration,  each
Business  Day  prior to the last day of such  Interest  Period  that  occurs  at
intervals of three months' duration after the first day of such Interest Period.

         "Interest Period" means with respect to any Eurodollar  Borrowing,  the
period  commencing on the date of such  Borrowing and ending on the  numerically
corresponding  day in the calendar  month that is one, two,  three or six months
thereafter, as the Borrower may elect; provided, that (i) if any Interest period
would end on a day other than a Business  Day,  such  Interest  Period  shall be
extended  to the next  succeeding  Business  Day  unless  such  next  succeeding
Business Day would fall in the next calendar  month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest Period
that  commences on the last  Business  Day of a calendar  month (or on a day for
which there is no  numerically  corresponding  day in the last calendar month of
such  Interest  Period)  shall end on the last Business Day of the last calendar
month of such  Interest  Period.  For purposes  hereof,  the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall
be the  effective  date of the most recent  conversion or  continuation  of such
Borrowing.

         "Investment"  of any Person  shall mean any loan or advance of funds by
such Person to any other Person (other than advances to employees of such Person
for moving and travel expense,  drawing accounts and similar expenditures in the
ordinary  course of business),  any purchase or other  acquisition of any Equity
Securities or Indebtedness of any other Person, any capital contribution by such
Person to or any other investment by such Person in any other Person (including,
without  limitation,  any  Indebtedness  incurred  by such  Person  of the  type
described in clauses (a) and (b) of the definition of  "Indebtedness"  on behalf
of any other Person);  provided,  however,  that  Investments  shall not include
accounts receivable or other indebtedness owed by customers of such Person which
are  current  assets  and arose  from sales or  non-exclusive  licensing  in the
ordinary course of such Person's business.

                                       -6-
<PAGE>

         "LIBO Rate" means,  with respect to any  Eurodollar  Borrowing  for any
Interest Period,  the rate appearing on Page 3750 of the Telerate Service (or on
any  successor  or  substitute  page of such  Service,  or any  successor  to or
substitute  for such  Service,  providing  rate  quotations  comparable to those
currently provided on such page of such Service, as determined by Bank from time
to time for purposes of providing  quotations  of interest  rates  applicable to
U.S.  dollar deposits in the London  interbank  market) at  approximately  11:00
a.m.,  London time, two Business Days prior to the commencement of such Interest
Period, as the rate for U.S. dollar deposits with a maturity  comparable to such
Interest  Period.  In the event that such rate is not available at such time for
any reason,  then the "LIBO Rate" with respect to such Eurodollar  Borrowing for
such  Interest  Period  shall be the  rate at  which  U.S.  dollar  deposits  of
$5,000,000,  and for a maturity  comparable to such Interest Period, are offered
by the principal London office of the Bank in immediately available funds in the
London interbank market at approximately  11:00 a.m.,  London time, two Business
Days prior to the commencement of such Interest Period.

         "Lien" shall mean any pledge, bailment, lease, mortgage, hypothecation,
conditional sales and title retention agreements,  charge, claim, encumbrance or
other lien in favor of any Person.

         "Loan"  shall mean a loan  advanced  by Bank to a  Borrower  under this
Agreement.

         "Management  Agreement"  shall  mean any  agreement  between a Borrower
and/or any of its Subsidiaries,  on the one hand, and any Other Licensee, on the
other,  pursuant  to which a Borrower  and/or any of its  Subsidiaries  operates
and/or manages Facilities for which any FCC Licenses or Other Authorizations are
held by such Other Licensee

         "Material  Adverse Effect" shall mean a material  adverse effect on (a)
the assets of the Borrowers; (b) the ability of a Borrower to pay or perform the
Obligations  in  accordance  with the  terms  of this  Agreement  and the  other
Operative  Documents and to avoid an Event of Default,  or an event which,  with
the giving of notice or the passage of time or both,  would  constitute an Event
of  Default,  under any  Operative  Document;  or (c) the rights,  remedies  and
security interests of Bank under this Agreement,  the other Operative  Documents
or any related document, instrument or agreement or on any item of Collateral.

         "Nextel  Agreement" shall mean the Agreement and Plan of Reorganization
dated as of August 21, 2000, as it maybe amended from time to time, by and among
Nextel Communications, Inc., Nextel Finance Company and Chadmoore.

         "Nextel Note" shall mean the  Subordinated  Secured  Promissory Note of
Chadmoore in favor of Unrestricted Subsidiary Funding Company dated as of August
25, 2000.

         "Note" or "Notes" shall mean the secured  promissory  note or notes, as
applicable, of a Borrower substantially in the form of Exhibit A.

         "Obligations"  shall  mean and  include  all  Loans,  advances,  debts,
liabilities and obligations, howsoever arising, owed by the Borrowers to Bank of
every kind and description

                                       -7-
<PAGE>

(whether or not evidenced by any note or  instrument  and whether or not for the
payment of money),  now existing or hereafter  arising  under or pursuant to the
terms of this  Agreement,  the  Notes,  the  Guaranty  and the  other  Operative
Documents,  including,  all interest,  fees, charges, premium payable under this
Agreement,  expenses, reasonable attorneys' fees and costs and accountants' fees
and costs  chargeable to and payable by the Borrowers  hereunder and thereunder,
in each case,  whether  direct or indirect,  absolute or  contingent,  due or to
become due, and whether or not arising  after the  commencement  of a proceeding
under Title 11 of the United  States Code (11 U. S. C. Section 101 et seq.),  as
amended from time to time (including  post-petition interest) and whether or not
allowed or allowable as a claim in any such proceeding.

         "Operative  Documents"  shall  mean  this  Agreement,  the  Notes,  the
Guaranty,  the Security  Agreement,  the  Subordination  Agreement and all other
documents,  instruments  and  agreements  executed and  delivered in  connection
herewith  or  therewith  or in  respect  of  the  closing  of  the  transactions
contemplated hereby or thereby.

         "Other  Authorization"  shall mean any  license,  permit,  certificate,
ordinance,  approval or other authorization  specifically  related to the use of
specialized  mobile radio  frequencies or the operation of a specialized  mobile
radio  business,  or any renewal or  extension  thereof,  from any  Governmental
Authority other than the FCC.

         "Other Licensee" shall mean any party,  other than the Borrowers or any
of their  Subsidiaries,  that holds an FCC License or Other  Authorization for a
Facility being operated or managed by the Borrower or any of its Subsidiaries in
connection with the management and operation of their business.

         "Permitted Indebtedness" shall mean and include:

         (a)  Indebtedness of the Borrowers to Bank;

         (b)  Indebtedness of Borrowers to Senior Lender in a principal amount
              not to exceed the principal amount outstanding on August 31, 2000;

         (c)  Indebtedness existing on the date hereof and set forth on the
              Disclosure Schedule;

         (d)  Indebtedness of a Borrower to any other Borrower;

         (e)  Indebtedness to the FCC related to 900 MHz channels; and

         (f)  Subordinated Indebtedness, so long as no Default or Event of
              Default exists prior to the incurrence thereof or would exist
              immediately after giving effect thereto.

         "Permitted Investments" shall mean and include:

         (a)  Investments in marketable obligations issued or fully guaranteed
              by the United States and maturing not more than one (1) year from
              the date of issuance;

                                      -8-
<PAGE>

         (b)  Investments in open market commercial paper rated at least "A1" or
              "P1" or higher by a national credit rating agency and maturing not
              more than one (1) year from the creation thereof;

         (c)  Other liquid Investments  maturing not more than one (1) year from
              the date of issuance  permitted under a written  investment policy
              of  Chadmoore  approved by its Board of  Directors  and by Bank in
              writing;

         (d)  Investments  pursuant to or arising under  currency  agreements or
              interest rate  agreements  entered into in the ordinary  course of
              business;

         (e)  Investments  existing on the date of this  Agreement and disclosed
              in the Disclosure Schedule;

         (f)  Investments by a Borrower in any other Borrower;

         (g)  Investments   consisting   of  loans  and  advances  to  employees
              aggregating  not  in  excess  of  Twenty-Five   Thousand   Dollars
              ($25,000) at any time;

         (h)  Investments  consisting of deposit accounts of a Borrower in which
              Bank has a perfected security interest; and

         (i)  Other  Investments  aggregating  not  in  excess  of  One  Hundred
              Thousand Dollars ($100,000) at any time.

         "Permitted Liens" shall mean:

         (a)  The Lien created as contemplated by this Agreement;

         (b)  The Lien to Senior Lender;

         (c)  Liens  for  fees,  taxes,   levies,   imposts,   duties  or  other
              governmental  charges of any kind which are not yet  delinquent or
              which are being contested in good faith by appropriate proceedings
              which suspend the collection thereof (provided, however, that such
              proceedings  do not  involve any  substantial  danger of the sale,
              forfeiture or loss of any item of  Collateral  and that a Borrower
              has  adequately  bonded  such  Lien  or  reserves   sufficient  to
              discharge  such  Lien  have  been  provided  on the  books of such
              Borrower);

         (d)  Liens identified on the Disclosure Schedule;

         (e)  Liens  and  deposits  under  workers'  compensation,  unemployment
              insurance and social security laws or to secure the performance of
              bids, tenders, contracts (other than for the repayment of borrowed
              money) or leases, or to secure statutory  obligations or to secure
              indemnity,  performance  or other  similar  bonds in the  ordinary
              course of business;

                                      -9-
<PAGE>

         (f)  Liens upon any equipment or other personal  property acquired by a
              Borrower after the date hereof to secure (i) the purchase price of
              such  equipment or other  personal  property or (ii) capital lease
              obligations  or  indebtedness   otherwise   permitted  under  this
              Agreement  and incurred  solely for the purpose of  financing  the
              acquisition of such equipment or other personal property; provided
              that (A) such Liens are confined  solely to the equipment or other
              personal property so acquired  (together with accessions  thereto,
              substitutions  therefore  and proceeds  thereof),  and (B) no such
              Lien shall be created,  incurred,  assumed or suffered to exist in
              favor of a Borrower's officers,  directors or shareholders holding
              five percent (5%) or more of a Borrower's Equity Securities;

         (g)  Easements,   reservations,  rights  of  way,  restrictions,  minor
              defects or  irregularities  in title and other similar  charges or
              encumbrances affecting real property in a manner not materially or
              adversely affecting the value or use of such property;

         (h)  Liens arising  solely by virtue of any  contractual,  statutory or
              common law provision relating to banker's liens, rights of set-off
              or similar rights as to deposit accounts and other fund maintained
              with a  depository  institution;  provided,  that (i) such deposit
              account is not a  dedicated  cash  collateral  account  and is not
              subject to restrictions  against access by a Borrower in excess of
              those set forth by regulations  promulgated by the Federal Reserve
              Board,  and (ii) such  deposit  account  is not  intended  by such
              Borrower to provide collateral to the depository institution;

         (i)  Carriers', warehousemen's,  mechanics', landlords', materialmen's,
              repairmen's or other similar Liens arising in the ordinary  course
              of business  which are not  delinquent or remain  payable  without
              penalty  or  which  are  being  contested  in  good  faith  and by
              appropriate proceedings;

         (j)  Lien  held  by  the  FCC to  secure  payment  of the  Indebtedness
              identified   in  clause  (e)  of  the   definition   of  Permitted
              Indebtedness; and

         (k)  Non-exclusive  licenses of Intellectual  Property  entered into in
              the ordinary course of business.

         "Person"  shall  mean and  include  an  individual,  a  partnership,  a
corporation,  a business  trust,  a joint  stock  company,  a limited  liability
company,  an  unincorporated  association  or other  entity and any  domestic or
foreign national, state or local government,  any political subdivision thereof,
and any department, agency, authority or bureau of any of the foregoing.

         "Preferred  Stock"  means,  with  respect  to any  Person,  any and all
shares,  interests,  participations or other equivalents (however designated) of
such Person's  preferred or preference  stock whether now  outstanding or issued
after the date hereof, and including, without limitation, all classes and series
of preferred or preference stock of such Person.

                                      -10-
<PAGE>

         "Prime  Rate" means the rate of interest per annum  publicly  announced
from  time to time by  Barclays  Bank PLC,  as its  prime  rate in effect at its
principal  office in New York  City;  each  change in the  Prime  Rate  shall be
effective from and including the date such change is publicly announced as being
effective.

         "Security  Agreement"  shall mean the  Security  Agreement  in the form
attached hereto as Exhibit D.

         "Senior Lender" means GATX Capital Corporation, a Delaware corporation.

         "Senior Loan Agreement" means the Senior Secured Loan Agreement,  dated
as of March 2, 1999, among the Senior Lender, Chadmoore and certain Subsidiaries
of Chadmoore, as amended.

         "Solvent"  shall mean,  with respect to any Person on any date, that on
such date (a) the fair value of the  property of such Person is greater than the
fair  value  of  the  liabilities  (including,  without  limitation,  contingent
liabilities)  of such Person,  (b) the present fair saleable value of the assets
of such  Person is not less than the  amount  that will be  required  to pay the
probable  liability  of such  Person on its debts as they  become  absolute  and
matured,  (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person's ability to pay as such debts and
liabilities  mature  and (d) such  Person  is not  engaged  in a  business  or a
transaction,  and is not about to engage in a  business  or a  transaction,  for
which such Person's property would constitute an unreasonably small capital.

         "State PUC" shall mean any state administrative agency that has primary
jurisdiction  for  the  regulation  of  specialized  mobile  radio  services  or
telecommunications services.

         "State PUC Rules" shall mean the rules, regulations and policies of any
State PUC.

         "Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and  denominator of which is the number one
minus the aggregate of the maximum reserve percentages  (including any marginal,
special,  emergency or supplemental reserves) expressed as a decimal established
by the  Federal  Reserve  Board to which the Bank is  subject  for  eurocurrency
funding (currently referred to as "Eurocurrency  Liabilities" in Regulation D of
the Federal Reserve Board). Such reserve percentages shall include those imposed
pursuant to such  Regulation D.  Eurodollar  Loans shall be deemed to constitute
eurocurrency  funding  and to be subject to such  reserve  requirements  without
benefit of or credit for proration,  exemptions or offsets that may be available
from time to time to Bank under such Regulation D or any comparable  regulation.
The  Statutory  Reserve  Rate shall be adjusted  automatically  on and as of the
effective date of any change in any reserve percentage.

         "Subordinated   Indebtedness"   shall   mean   unsecured   Indebtedness
subordinated to the  Obligations on terms and conditions,  including no payments
of principal while the Obligations  are  outstanding,  acceptable to Bank in its
sole and absolute discretion.

                                      -11-
<PAGE>

         "Subordination   Agreement"  shall  mean  that  certain   Subordination
Agreement,  dated as of August 31, 2000,  between GATX Capital  Corporation  and
Barclays Bank, PLC.

         "Subsidiary"  shall mean, with respect to any Person, a Person of which
a majority of the outstanding  voting stock or other Equity  Securities is owned
by such Person directly or indirectly through Subsidiaries.

         "Surety  Instruments"  shall  mean all  letters  of  credit  (including
standby and commercial),  banker's acceptances, bank guaranties, shipside bonds,
surety bonds and similar instruments.

         "Term"  shall mean the period from and after the date hereof  until the
payment or satisfaction in full of all Obligations  under this Agreement and the
other Operative Documents.

         "Transfer"  shall  have  the  meaning  given  to that  term in  Section
7.01(c).

1.02.  Headings.  Headings  in this  Agreement  and each of the other  Operative
Documents  are for  convenience  of  \reference  only  and  are not  part of the
substance hereof or thereof.

1.03.  Plural Terms.  All terms defined in this Agreement or any other Operative
Document in the singular  form shall have  comparable  meanings when used in the
plural form and vice versa.

1.04. Construction.  This Agreement is the result of negotiations among, and has
been  reviewed  by,  the  Borrowers  and  Bank  and  their  respective  counsel.
Accordingly,  this  Agreement  shall be deemed to be the  product of all parties
hereto, and no ambiguity shall be construed in favor of or against the Borrowers
or Bank.

1.05.  Entire  Agreement.  This Agreement,  together with the terms set forth in
each of the other Operative Documents,  taken together,  constitute and, contain
the  entire  agreement  of the  Borrowers  and Bank  and,  with  regard to their
respective subject matters, supersede any and all prior agreements, term sheets,
negotiations,  correspondence,   understandings  and  communications  among  the
parties,  whether  written or oral,  with  respect to their  respective  subject
matters.

1.06. Other Interpretive Provisions. References in this Agreement to "Articles,"
"Sections,"  "Exhibits,"  "Schedules"  and "Annexes" are to articles,  sections,
exhibits,  schedules and annexes herein and hereto unless  otherwise  indicated.
References in this  Agreement and each of the other  Operative  Documents to any
document,  instrument or agreement  shall  include (a) all exhibits,  schedules,
annexes  and  other  attachments  thereto,  (b) all  documents,  instruments  or
agreements  issued or executed in  replacement  thereof,  and (c) such document,
instrument or agreement,  or  replacement or  predecessor  thereto,  as amended,
modified and supplemented from time to time and in effect at any given time. The
words  "hereof,"  "herein" and "hereunder" and words of similar import when used
in this Agreement or any other Operative  Document shall refer to this Agreement
or such other Operative Document,  as the case may be, as a whole and

                                      -12-
<PAGE>

not to any  particular  provision  of this  Agreement  or such  other  Operative
Document,  as the case may be. The words  "include" and "including" and words of
similar import when used in this Agreement or any other Operative Document shall
not be construed to be limiting or exclusive. Unless otherwise indicated in this
Agreement or any other  Operative  Document,  all accounting  terms used in this
Agreement or any other Operative Document shall be construed, and all accounting
and  financial  computations  hereunder  or  thereunder  shall be  computed,  in
accordance with GAAP.

                                   ARTICLE II
                                   ----------

                                   THE CREDIT
                                   ----------

2.01. Credit Facility; Notes.

         (a)  Availability.  On the terms and subject to the conditions  hereof,
Bank agrees to make Loans to the Borrowers up to an aggregate  principal  amount
of Thirty-Two Million Five Hundred Thousand Dollars ($32,500,000).

         (b)  Type of  Loans.  Subject  to  Section  2.05,  each  Loan  shall be
comprised  entirely of Base Rate Loans or  Eurodollar  Loans as the Borrower may
request in accordance herewith.

         (c) Minimum Amounts.  At the commencement of each Interest Period for a
Eurodollar  Loan,  such  request  shall  be in an  aggregate  amount  that is an
integral  multiple of $100,000  and not less than  $1,000,000.  At the time that
each Base Rate Borrowing is made, such Borrowing shall be in an aggregate amount
that  is an  integral  multiple  of  $100,000  and  not  less  than  $1,000,000.
Borrowings of more than one Type may be outstanding  at the same time;  provided
that  there  shall  not at any  time  be  more  than a  total  of 10  Eurodollar
Borrowings outstanding.

         (d)  Maximum  Amount.   The  initial  Loan  Request  shall  not  exceed
$5,200,000 plus any fees, interests, or other expenses (i) then due hereunder or
which are reasonably expected to become due in the next 30 days thereafter,  and
(ii)  payable  under a letter  agreement  dated the date of this  Agreement.  No
subsequent  Loan Request shall request a Loan of more than the sum of $1,300,000
plus any fees or interest then due hereunder or which are reasonably expected to
become due within 30 days thereafter.

         (e) Frequency. Loans shall be made to the Borrowers not more often than
monthly, on or before the fifth Business Day of a calendar month.

         (f)  Identity  of  Borrower.  Bank  shall  advance  a Loan  only to the
Borrower that will utilize the proceeds of such Loan, provided that Loans may be
advanced by Bank to any Subsidiaries of Chadmoore only if the conditions of Part
III of Schedule 2 have been satisfied.

         (g) Notes.  The obligation of a Borrower to repay the aggregate  unpaid
principal  amount  of and  interest  on  each  Loan to such  Borrower  shall  be
evidenced by a Note.  Bank may,

                                      -13-
<PAGE>

and is hereby  authorized by each Borrower to, endorse on a grid annexed to such
Note appropriate  notations  regarding such Loan;  provided,  however,  that the
failure to make,  or an error in making,  any such  notation  shall not limit or
otherwise affect the obligations of a Borrower hereunder or under such Note.

         (h) Termination of Commitment to Lend.  Notwithstanding anything to the
contrary in the Operative  Documents,  Bank's obligation to lend the undisbursed
portion  hereunder  shall  be  suspended  upon the  occurrence  and  during  the
continuation  of an Event of  Default,  and shall  terminate  on the  Commitment
Termination Date.

         (i) Maturity. All unpaid principal and interest shall, in any event, be
paid not later than June 30, 2002.

2.02.    Requests for Borrowings; Funding.

         (a) To  request a Loan,  the  Borrower  shall  notify  the Bank of such
request by telephone (i) in the case of a Eurodollar  Loan, not later than 11:00
a.m.,  New York City time,  three  Business Days before the date of the proposed
Borrowing  or (ii) in the case of a Base Rate Loan,  not later than 11:00  a.m.,
New York City time, one Business Day before the date of the proposed Loan.  Each
such  telephonic  Loan  Request  shall be  irrevocable  and  shall be  confirmed
promptly by hand delivery or telecopy of the Bank of a written Loan Request in a
form approved by the Bank and signed by the Borrower.  Each such  telephonic and
written Loan Request shall specify the following information:

             (i)  the Borrower (which,  if the Borrower is other than Chadmoore,
                  must have complied with Part III of Schedule 2);

             (ii) the aggregate amount of the Loan being requested;

             (iii)whether  such Loan is to be a Base  Rate Loan or a  Eurodollar
                  Loan;

             (iv) the  location  and number of the  Borrowers'  account to which
                  funds are to be disbursed.

         The initial Loan made hereunder,  and any other Loan if no type of Loan
is specified in the Loan Request shall be a Base Rate Borrowing.

         (b)  Bank  shall  make  each  Loan to be made  by it  hereunder  on the
proposed  date thereof by wire  transfer of  immediately  available  funds to an
account of the  Borrower  designated  by the  Borrower  in the  applicable  Loan
Request.

2.03. Use of Proceeds. The proceeds of the Loans shall be used to pay principal,
interest  and fees on  Indebtedness  to  Senior  Lender,  to pay  principal  and
interest under the Nextel Note, to pay fees and interest on Loans made hereunder
for working capital and other general corporate purposes.

                                      -14-
<PAGE>

2.04.    Interest.

         (a) Base Rate Borrowings.  Each Base Rate Loan shall bear interest at a
rate per annum equal to the Adjusted Base Rate plus 3.5%.

         (b) Eurodollar Borrowings.  Each Eurodollar Loan shall bear interest at
a rate per annum  equal to the  Adjusted  LIBO Rate for the  Interest  Period in
effect for such Loan plus 4.5%.

         (c) Default  Interest.  Notwithstanding  the foregoing,  (i) during the
period when any Event of Default  shall have  occurred  and be  continuing,  the
principal of each Loan hereunder  shall bear  Interest,  after as well as before
judgment, at a rate per annum (herein, the "Post-Default Rate") equal to 2% plus
the rate,  otherwise  applicable to such Loan as provided  above and (ii) if any
interest  on any  Loan  or any  fee or  other  amount  payable  by the  Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or
otherwise,  such  overdue  amount shall bear  interest,  after as well as before
judgment,  at a rate per annum  equal to the  Post-Default  Rate for the Loan in
respect of which such interest is payable.

         (d) Payment of Interest. Accrued interest on each Loan shall be payable
in arrears  on each  Interest  Payment  Date for such  Loan;  provided  that (i)
interest accrued pursuant to paragraph (c) of this Section 2.04 shall be payable
on demand,  (ii) in the event of any repayment or  prepayment of any  Eurodollar
Loan (or the repayment or prepayment in full of the Loans),  accrued interest on
the  principal  amount  repaid or  prepaid  shall be payable on the date of such
repayment  or  prepayment,  and  (iii)  in the  event of any  conversion  of any
Eurodollar  Loan  prior  to the end of the  current  Interest  period  therefor,
accrued  interest  on such Loan shall be payable on the  effective  date of such
conversion.

         (e) Computation.  All interest hereunder shall be computed on the basis
of a year of 360  days,  except  that  interest  computed  by  reference  to the
Adjusted  Base Rate at times when the  Adjusted  Base Rate is based on the Prime
Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year),  and in each case shall be payable for the actual  number of days elapsed
(including the first day but excluding the last day).  The  applicable  Adjusted
Base Rate,  Adjusted LIBO Rate or LIBO Rate shall be determined by the Bank, and
such determination shall be conclusive absent manifest error.

2.05.  Alternate Rate of Interest.  If prior to the commencement of any Interest
Period for a Eurodollar Loan, the Bank determines (which  determination shall be
conclusive  absent  manifest  error) that adequate and  reasonable  means do not
exist for  ascertaining  the Adjusted LIBO Rate or the LIBO Rate, as applicable,
for such Interest  Period;  then the Bank shall give notice thereof to Chadmoore
by telephone or telecopy as promptly as  practicable  thereafter  and, until the
Bank notifies  Chadmoore  that the  circumstances  giving rise to such notice no
longer exist, (i) any Interest  Election Request that requests the conversion of
any Loan  to,  or  continuation  of any Loan  as,  a  Eurodollar  Loan  shall be
ineffective and (ii) if any Loan Request  requests a Eurodollar  Loan, such Loan
shall be made as a Base Rate Loan.

                                      -15-
<PAGE>

2.06.    Increased Costs.

         (a) Increased Costs Generally. If any Change in Law shall:

             (i) impose, modify or deem applicable any reserve,  special deposit
or similar  requirement  against assets of, deposits with or for the account of,
or credit  extended by, Bank (except any such reserve  requirement  reflected in
the Adjusted LIBO Rate); or

             (ii)  impose  on Bank or the  London  interbank  market  any  other
condition  affecting this Agreement or Eurodollar Loans made by such Bank or any
participation therein;

and the result of any of the  foregoing  shall be to  increase  the cost to such
Bank of  making  or  maintaining  any  Eurodollar  Loan (or of  maintaining  its
obligation to make any such Loan) or to reduce the amount of any sum received or
receivable by such Bank hereunder (whether of principal, interest or otherwise),
then the  Borrower  will pay to such Bank such  additional  amount or amounts as
will  compensate  such  Bank,  as the case may be,  for  such  additional  costs
incurred or reduction suffered.

         (b)  Capital  Requirements.  If any  Bank or  Issuing  Bank  reasonably
determines that any Change in Law regarding  capital  requirements  has or would
have the effect of reducing the rate of return on such Bank's  capital or on the
capital  of such  Bank's  holding  company,  if any,  as a  consequence  of this
Agreement or the Loans made by such Bank,  to a level below that which such Bank
or such Bank's  holding  company  could have achieved but for such Change in Law
(taking into  consideration such Bank's policies and the policies of such Bank's
holding  company with respect to capital  adequacy),  then from time to time the
Borrower  will pay to such  Bank,  such  additional  amount or  amounts  as will
compensate  such Bank, or such Bank's  holding  company,  for any such reduction
suffered.

         (c)  Certificates  from Banks.  A certificate of Bank setting forth the
amount or amounts  necessary to compensate such Bank or its holding company,  as
the case may be, as specified in paragraph (a) or (b) of this Section 2.06 shall
be  delivered  to  Chadmoore  and shall be  conclusive  so long as it reflects a
reasonable  basis for the  calculation of the amounts set forth therein and does
not contain any  manifest  error.  The  Borrower  shall pay such Bank the amount
shown as due on any such certificate within 10 days after receipt thereof.

         (d) Delay in  Requests.  Failure or delay on the part of Bank to demand
compensation pursuant to this Section 2.06 shall not constitute a waiver of such
Bank's right to demand such  compensation;  provided that the Borrower shall not
be required to compensate a Bank pursuant to this Section 2.06 for any increased
costs or  reductions  incurred  more than six months prior to the date that such
Bank, as the case may be, notifies the Borrower of the Change in Law giving rise
to such  increased  costs or  reductions  and of such Bank's  intention to claim
compensation  therefor;  provided further that, if the Change in Law giving rise
to such increased costs or reductions is retroactive,  then the six-month period
referred to above shall be extended to include the period of retroactive  effect
thereof.

                                      -16-
<PAGE>

2.07. Break Funding  Payments.  In the event of (a) the payment of any principal
of any  Eurodollar  Loan  other  than  one the last  day of an  Interest  Period
applicable  thereto  (including  as a result  of an Event of  Default),  (b) the
conversion  of any  Eurodollar  Loan other than on the last day of the  Interest
Period  applicable  thereof,  (c) the  failure to borrow,  convert,  continue or
prepay any Loan on the date specified in any notice  delivered  pursuant  hereto
(regardless  of whether such notice is permitted to be revocable  and is revoked
in accordance  herewith) or (d) the assignment of any Eurodollar Loan other than
on the last day of the  Interest  Period  applicable  thereto  as a result  of a
request by the Borrower  pursuant to Section 2.07,  then, in any such event, the
Borrower shall  compensate Bank for the loss,  cost and expense  attributable to
such event.

         In the case of a Eurodollar Loan, the loss to Bank  attributable to any
such event  shall be deemed to include an amount  determined  by such Bank to be
equal to the excess,  if any, of (i) the amount of interest that such Bank would
pay for a deposit equal to the principal amount of such Loan for the period from
the date of such payment,  conversion,  failure or assignment to the last day of
the then current  Interest period for such Loan (or, in the case of a failure to
borrow, convert or continue, the duration of the Interest Period that would have
resulted from such borrowing,  conversion or  continuation) if the interest rate
payable on such deposit were equal to the Adjusted  LIBO Rate for such  Interest
period,  over (ii) the  amount of  interest  that such Bank  would  earn on such
principal  amount  for such  period if such Bank were to invest  such  principal
amount for such period at the interest  rate that would be bide by such Bank (or
an  affiliate  of such Bank) for U.S.  dollar  deposits  from other banks in the
eurodollar  market at the  commencement  of such period.  A certificate  of Bank
setting  forth any  amount or  amounts  that such Bank is  entitled  to  receive
pursuant to this  Section  2.07 shall be  delivered to the Borrower and shall be
conclusive  absent manifest  error.  The Borrower shall pay such Bank the amount
shown as due on any such certificate within 10 days after receipt thereof.

2.08.    Prepayments.

         (a) Optional  Prepayments.  Borrower may make  prepayments of Loans, at
any time,  in whole or in part subject to the other  provisions  of this Section
2.08.

         (b) Mandatory Prepayments.  Subject to Borrower's obligations under the
Senior Loan Agreement, Borrower shall make prepayments of the Loans hereunder:

             (i) any time after the obligations  under the Senior Loan Agreement
have been paid in full or at any other time that Senior  Lender does not require
that such amounts be applied to obligations  under the Senior Loan Agreement and
the  Borrowers   have  aggregate   proceeds  from  sales,   exchanges  or  other
dispositions  of assets  outside  the  ordinary  course of business in excess of
$2,000,000  after  payment of any  expenses  incurred  in  connection  with such
dispositions, then, subject to the requirements of Section 2.08(c), the proceeds
shall be paid to Lender; and

                                      -17-
<PAGE>

             (ii) on the  date of any  sale,  issuance  or other  incurrence  of
Indebtedness  or sale of securities,  in an amount equal to the cash proceeds of
such  transaction  net  of  any  expenses   incurred  in  connection  with  such
transaction.

         (c) Amount to be Paid.  Any  prepayment  other than  prepayment in full
must be of a principal  amount of $2,000,000  or more, in integral  multiples of
$1,000,000  at a price  equal  to the  principal  amount  of each  Loan so to be
prepaid,  plus interest  accrued  thereon through and including the date of such
prepayment plus any amount due under Section 2.07.

         (d)  Notification  of Payments.  The Borrower  shall notify the Bank by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar  Borrowing,  not later than 11:00 a.m., New York City
time,  three  Business Days before the date of prepayment or (ii) in the case of
prepayment of a Base Rate  Borrowing,  not later than 11:00 a.m.,  New York City
time, on the date of prepayment. Each such notice shall be irrevocable and shall
specify  the  prepayment  date and the  principal  amount of each  Borrowing  or
portion  thereof to be prepaid.  Each  partial  payment of any  Borrowing  under
paragraph (a) of this Section 2.08 shall be in an amount that would be permitted
in the case of an advance of a Borrowing of the same Type as provided in Section
2.02.

2.09.    Other Payment Terms.

         (a) Place and Manner. The Borrowers shall make all payments due to Bank
in lawful money of the United States,  in immediately  available  funds,  at the
address for payments and in the manner specified in Section 10.05(b).

         (b) Date.  Whenever any payment due  hereunder  shall fall due on a day
other than a Business  Day,  such payment  shall be made on the next  succeeding
Business Day, and such extension of time shall be included in the computation of
interest or fees, as the case may be.

2.10.  Commitment Fee.  Chadmoore shall pay a fee (the "Commitment Fee") of 1.0%
per annum  payable  quarterly  in arrears on the average  unused  portion of the
amount available under Section 2.01.

                                  ARTICLE III
                                  -----------

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

3.01.  Representations  and  Warranties.  Except as set forth in the  Disclosure
Schedule,  each Borrower makes the following  representations  and warranties to
Bank as of the date hereof and again on each Funding Date:

         (a) Due  Incorporation,  Qualification,  etc. Each of such Borrower and
its  Subsidiaries  (i)  is a  corporation  or  limited  liability  company  duly
organized,  validly existing and in good standing under the laws of its state of
incorporation  or formation;  (ii) has the power and authority to own, lease and
operate its properties and carry on its business as now conducted;  and (iii) is

                                      -18-
<PAGE>

duly  qualified,  licensed  to do  business  and in good  standing  as a foreign
corporation or limited liability company in each jurisdiction  where the failure
to be so qualified or licensed  could  reasonably be expected to have a Material
Adverse Effect.

         (b) Authority. The execution, delivery and performance by such Borrower
of each Operative  Document to be executed by such Borrower and the consummation
of the  transactions  contemplated  thereby  (i) are  within  the  power of such
Borrower and (ii) have been duly authorized by all necessary actions on the part
of such Borrower.

         (c)  Enforceability.   Each  Operative  Document  executed,  or  to  be
executed,  by such Borrower has been, or will be, duly executed and delivered by
such Borrower and constitutes,  or will constitute,  a legal,  valid and binding
obligation  of such  Borrower,  enforceable  against such Borrower in accordance
with its terms,  except as limited by  bankruptcy,  insolvency  or other laws of
general  application  relating to or affecting  the  enforcement  of  creditors'
rights generally and general principles of equity.

         (d)  Non-Contravention.  The execution and delivery by such Borrower of
the  Operative  Documents  executed by such  Borrower  and the  performance  and
consummation of the  transactions  contemplated  thereby do not and will not (i)
violate the articles of  incorporation  or bylaws or certificate of formation or
limited liability  company agreement of such Borrower or any material  judgment,
order, writ, decree,  statute,  rule or regulation  applicable to such Borrower;
(ii) violate any provision of, or result in the breach or the  acceleration  of,
or entitle any other Person to accelerate (whether after the giving of notice or
lapse of time or both), any material mortgage, indenture,  agreement, instrument
or contract to which such Borrower is a party or by which it is bound;  or (iii)
result in the creation or  imposition  of any Lien upon any  property,  asset or
revenue  of such  Borrower  (other  than any Lien  arising  under the  Operative
Documents) or the suspension,  revocation, impairment, forfeiture, or nonrenewal
of any material permit,  license,  authorization or approval  applicable to such
Borrower, its business or operations, or any of its assets or properties.

         (e) Approvals.  No consent,  approval,  order or  authorization  of, or
registration,  declaration or filing with, any  Governmental  Authority or other
Person  (including,  without  limitation,  the  shareholders  of any  Person) is
required  in  connection  with  the  execution  and  delivery  of the  Operative
Documents  executed by such Borrower and the performance and consummation of the
transactions contemplated thereby.

         (f) No Violation or Default.  None of such Borrower or such  Borrower's
Subsidiaries  is in  violation of or in default with respect to (i) its articles
of  incorporation  or bylaws or  certificate  of formation or limited  liability
company agreement or any material judgment,  order, writ, decree,  statute, rule
or regulation applicable to such Person; (ii) any material mortgage,  indenture,
agreement, instrument or contract to which such Person is a party or by which it
is bound  (nor is there any  waiver in effect  which,  if not in  effect,  would
result in such a violation or default),  where,  in each case, such violation or
default,  individually,  or together with all such violations or defaults, could
reasonably be expected to have a Material  Adverse Effect.  Without limiting the
generality  of  the  foregoing,   none  of  such  Borrower  or  such  Borrower's
Subsidiaries

                                      -19-
<PAGE>

(A) has  violated  any  Environmental  Law,  (B) has  any  liability  under  any
Environmental  Law or (C) has  received  notice  or  other  communication  of an
investigation or is under  investigation  by any  Governmental  Authority having
authority  to enforce  Environmental  Law,  where such  violation,  liability or
investigation could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.

         (g) Nextel  Agreement.  The Nextel Agreement  remains in full force and
effect,  there has been no breach or  default  or event that (with the giving of
notice  or the  passage  of time or  both)  could  become a  breach  or  default
thereunder.  No party  thereto has given notice under Section 9.01 of the Nextel
Agreement.

                                   ARTICLE IV
                                   ----------

                             REPORTING REQUIREMENTS
                             ----------------------

4.01.    Furnishing Reports.  Chadmoore shall furnish to Bank:

         (a) Reports to Senior  Lender.  As and when delivered to Senior Lender,
true, correct and complete copies of financial statements,  reports,  notices or
other information  delivered to Senior Lender  (including,  without  limitation,
deliveries required under Article IV of the Senior Loan Agreement).

         (b) Notices  Under Nextel  Agreement.  As and when  delivered to Nextel
Finance  Company,  true,  correct and  complete  copies of any notice  delivered
pursuant to the Nextel  Agreement,  and,  promptly after management of Chadmoore
becomes  aware  thereof,  and in any event within ten (10) Business Days of such
awareness,  provide  Bank with notice of any breach or default  under the Nextel
Agreement.

         (c)  Miscellaneous.  Promptly upon request,  such other information and
reports as Bank may reasonably request from time to time.

                                   ARTICLE V
                                   ---------

                    SECURITY; GUARANTIES; CORPORATE STRUCTURE
                    -----------------------------------------

5.01.  Security  Agreement.  The  Obligations  shall be secured by the  Security
Agreement  which  shall  be  entered  into  by each of the  Borrowers  and  each
Guarantor,   provided,  however,  that  upon  the  closing  of  the  transaction
contemplated in the Nextel Agreement, Bank shall release the Collateral upon the
assumption as contemplated by Section 7.03(f) of the Nextel Agreement.

5.02.  Guaranty.  Each of the Borrowers and each new  Subsidiary  shall become a
party to the Guaranty and guaranty the Obligations of each of the Borrowers.

5.03.    Corporate Structure.

                                      -20-
<PAGE>

         (a) Formation of New Subsidiaries. Without the prior written consent of
Bank,  Chadmoore and its Subsidiaries  shall not form or suffer to exist any new
Subsidiaries.

         (b) Consolidation of Existing  Subsidiaries.  Subject to receipt of FCC
approval, Chadmoore shall use commercially reasonable efforts to (i) consolidate
all FCC  Licenses  (other than those with  respect to which the  Borrowers  have
existing  contractual  obligations  to  maintain  licenses  in  non-wholly-owned
Subsidiaries)  in one or more  non-operating  direct  Subsidiaries of Chadmoore,
(ii)  consolidate  its  operations  (except  with respect to the  operations  of
non-wholly-owned  Subsidiaries) in one or more direct Subsidiaries of Chadmoore,
and (iii)  eliminate  through  merger  or  liquidation  all  other  wholly-owned
Subsidiaries.

                                   ARTICLE VI
                                   ----------

                              AFFIRMATIVE COVENANTS
                              ---------------------

6.01.    Affirmative Covenants.

         (a) Existence; Good Standing; Maintenance. Each Borrower shall maintain
or cause to be maintained its and each of its Subsidiaries'  corporate existence
(except as permitted in Section  7.01(e)) and good standing in its  jurisdiction
of incorporation  and maintain  qualification in each  jurisdiction in which the
failure to so qualify would  reasonably  be expected to have a Material  Adverse
Effect.  Each Borrower shall maintain,  and shall cause each of its Subsidiaries
to  maintain,  in force all  licenses,  approvals  and  agreements  necessary to
construct its network  infrastructure  and otherwise  operate its business,  the
loss of which would reasonably be expected to have a Material Adverse Effect.

         (b) Government Compliance.

             (i)  Subject to the more  specific  requirements  of  clauses  (ii)
                  through (ix) below,  each  Borrower  shall  comply,  and shall
                  cause each  Subsidiary  to comply,  with all  statutes,  laws,
                  ordinances and  government  rules and  regulations,  including
                  Environmental Laws, to which it is subject, noncompliance with
                  which could  reasonably be expected to have a Material Adverse
                  Effect or a material  adverse  effect on the Collateral or the
                  priority of Bank's Lien on the Collateral. Each Borrower shall
                  meet,  and shall cause each  Subsidiary  to meet,  the minimum
                  funding  requirements  of ERISA with  respect to any  employee
                  benefit plans subject to ERISA.

             (ii) Each   Borrower  and  its   Subsidiaries   shall  operate  the
                  Facilities  in all material  respects in  accordance  with the
                  terms  and  conditions  of the  FCC  Licenses  and  the  Other
                  Authorizations,  if any,  that are  necessary  or advisable in
                  connection with the control,  management, and operation of the
                  business  of  the  Borrowers,   and  in  compliance  with  any
                  applicable   law,

                                      -21-
<PAGE>

                  including the requirements of the Communications  Act, the FCC
                  Rules, public utilities laws, and State PUC Rules.

             (iii)Each of the  Borrowers and its  Subsidiaries  shall obtain any
                  appropriate FCC Licenses and any Other Authorizations, if any,
                  necessary for it to acquire, own, lease,  control,  manage and
                  operate their business.

             (iv) Each of the Borrowers and its Subsidiaries shall comply in all
                  material  respects  with, and shall ensure that all Facilities
                  comply in all material respects with the  Communications  Act,
                  the FCC Rules, any applicable public utilities laws, State PUC
                  Rules, and the FCC Licenses and Other Authorizations,  if any,
                  that  are  necessary  or  advisable  in  connection  with  the
                  control,  management,  and  operation  of the business of such
                  Borrowers and its Subsidiaries.

             (v)  Each of Borrowers and its Subsidiaries shall duly, timely, and
                  accurately file all material reports and documents required by
                  the Communications  Act, required by the FCC Rules,  requested
                  by the FCC,  required by any applicable public utilities laws,
                  required  by any State PUC Rules,  or  requested  by any State
                  PUC.

             (vi) Each of the  Borrowers  and its  Subsidiaries  shall  take all
                  actions and  perform all  obligations  that are  necessary  or
                  advisable  to comply in all material  respects  with the terms
                  and  conditions  of all FCC  Licenses  that are  necessary  or
                  advisable  in  connection  with the control,  management,  and
                  operation   of  the   business  of  such   Borrower   and  its
                  Subsidiaries,  and to maintain such FCC Licenses in full force
                  and effect and without  adverse  modification  or  impairment.
                  Each of the  Borrowers  and its  Subsidiaries  shall  take all
                  actions and  perform all  obligations  that are  necessary  to
                  comply in all material  respects with the terms and conditions
                  of  all  Other  Authorizations  and  to  maintain  such  Other
                  Authorizations  in full force and effect and  without  adverse
                  modification or impairment.

             (vii)Each of the  Borrowers  and its  Subsidiaries  shall  take all
                  actions and  perform all  obligations  that are  necessary  or
                  advisable to  effectuate  the renewal of all FCC Licenses that
                  are  necessary or advisable  in  connection  with the control,
                  management, and operation of the business of such Borrower and
                  its  Subsidiaries  and of all  Other  Authorizations  that are
                  necessary  or  advisable  in  connection   with  the  control,
                  management, and operation of the business of such Borrower and
                  its Subsidiaries.

             (viii) Each of the  Borrowers and its  Subsidiaries  shall take all
                  actions  necessary  or advisable  to preserve  their  material
                  rights  under  the   Management   Agreements   and  shall  use
                  reasonable  efforts to cause each Other  Licensee:  to perform
                  all of its respective obligations  thereunder;  to maintain in
                  full

                                      -22-
<PAGE>

                  force  and  effect  and  without   adverse   modification   or
                  impairment  any FCC Licenses or Other  Authorizations  held by
                  such Other Licensee  applicable to any Facility being operated
                  or managed by such Borrower or its Subsidiaries; and to comply
                  with the  terms and  conditions  of any such FCC  Licenses  or
                  Other  Authorizations,  the Communications Act, the FCC Rules,
                  and any applicable public utilities laws, and State PUC Rules.

             (ix) Each of the Borrower and its  Subsidiaries  shall  operate and
                  manage the  Facilities in such a manner as to ensure that they
                  will not cause or result in exposure of workers or the general
                  public to levels of radio frequency radiation in excess of the
                  applicable  limits  stated  in the  FCC  Rules,  or any  other
                  applicable law.

         (c) Payment of Taxes,  etc. Each Borrower shall pay and discharge,  and
cause  each  Subsidiary  to  pay  and  discharge,  all  taxes,  assessments  and
governmental charges or levies imposed upon it or upon its income or profits, or
upon any properties belonging to it, prior to the date on which penalties attach
thereto, and all lawful claims which, if unpaid, might become a Lien upon any of
its properties; provided that there shall be no requirement to pay any such tax,
assessment, charge, levy or claim (i) which is being contested in good faith and
by appropriate  proceedings  or which  presents no risk of seizure,  forfeiture,
levy or other event  which could  jeopardize  any  Collateral  or (ii) for which
payment in full is bonded or reserved in  Chadmoore's  Financial  Statements  in
accordance  with GAAP.  Each Borrower  shall pay and  discharge,  and cause each
Subsidiary to pay and discharge,  each of its contractual obligations with third
parties  except to the extent that the failure to do so could not  reasonably be
expected to have a Material Adverse Effect.

         (d) Inspection Rights.  Each Borrower shall, at any reasonable time and
from time to time,  and so long as no Default or Event of Default  has  occurred
and is continuing,  upon reasonable notice from Bank and at Bank's sole expense,
permit, and shall cause each Subsidiary to permit,  Bank or any of its agents or
representatives  to inspect  the  Collateral,  to examine and make copies of and
abstracts from the records and books of account of, and visit the properties of,
such Borrower and to discuss the affairs, finances and accounts of such Borrower
with any of its officers or directors  relating in each case to Bank's  capacity
as lender and secured party hereunder and with respect to the Collateral.

         (e) Maintenance of Equipment and Other Assets. Each Borrower shall keep
and maintain, and shall cause each Subsidiary to keep and maintain, all items of
equipment and other  tangible  personal  property in good  operating  condition,
reasonable wear and tear excepted, shall make all necessary replacements thereof
and renewals thereto so that the value and operating efficiency thereof shall at
all times be maintained and  preserved.  Each Borrower shall not permit any such
material item of property to be operated or maintained in material  violation of
any  applicable  law,  statute,  rule or  regulation  or provisions of insurance
policies.  With respect to items of leased equipment,  Each Borrower shall keep,
maintain,  repair,  replace and operate such leased equipment in accordance with
the terms of the applicable lease.

                                      -23-
<PAGE>

         (f)  Nextel  Agreement.  Chadmoore  shall use  commercially  reasonable
efforts to perform its obligations under the Nextel Agreement.

         (g) New Subsidiaries; Additional Borrowers.

             (i) The Borrower(s) will cause (i) any Subsidiary that makes a Loan
Request hereunder,  prior to making such request,  to execute and deliver to the
Bank a Borrower Joinder in the form of Exhibit B attached hereto,  to cause such
Subsidiary  to become a Borrower  under this  Agreement,  (ii) if any  Chadmoore
Subsidiary becomes a Borrower hereunder,  Chadmoore will join and become a party
to  the  Guaranty  by a  form  of  joinder  in  form  and  substance  reasonably
satisfactory to Bank, and (iii) each of their  Subsidiaries  hereafter formed or
acquired prior to the payment in full of all obligations hereunder,  to become a
Guarantor  under the Guaranty and a Grantor  under the Security  Agreement.  The
Borrowers and such  Subsidiary  shall fully  cooperate with Bank and perform all
additional  acts  requested  by Bank to  effect  the  purposes  of this  Section
6.01(g)(i),  including without limitation, execution and delivery of agreements,
instruments,  UCC-1 financing statements,  documents,  certificates and opinions
all in form and substance satisfactory to Bank.

             (ii) The Borrowers will cause each of their Subsidiaries  hereafter
formed or acquired on or after the Commitment  Termination  Date, to execute and
deliver  to the Bank a  Subsidiary  Joinder in the form of  Attachment  1 to the
Guaranty,  to cause such Subsidiary to become a Guarantor under the Guaranty and
a Grantor under the Security Agreement.  The Borrowers and such Subsidiary shall
fully  cooperate with Bank and perform all additional  acts requested by Bank to
effect the purposes of this Section  6.01(g)(ii),  including without limitation,
execution and delivery of agreements,  instruments,  UCC-1 financing statements,
documents,  certificates and opinions all in form and substance  satisfactory to
Bank.

                                   ARTICLE VII
                                   -----------

                        NEGATIVE AND FINANCIAL COVENANTS
                        --------------------------------

7.01. Negative Covenants. So long as the Obligations remain outstanding:
         (a) Name;  Location  of Chief  Executive  Office.  No  Borrower  shall,
without  thirty (30) days prior written notice to Bank,  change its name,  chief
executive office or principal place of business.

         (b) Liens. No Borrower shall,  nor shall it permit its Subsidiaries to,
create,  incur,  assume  or suffer to exist any Lien of any kind upon any of its
properties or assets, whether tangible or intangible,  whether real, personal or
mixed, whether now owned or hereafter acquired, except Permitted Liens.

         (c) Dispositions of Assets.  No Borrower shall, nor shall it permit its
Subsidiaries  to, convey,  sell,  offer to sell,  lease,  transfer,  exchange or
otherwise dispose of (collectively,  a "Transfer") all or any part of its assets
to any Person,  other than:  (i)  Transfers  of  worn-out,  obsolete or unneeded
equipment;  (ii) Transfers from any Borrower to Chadmoore or a Borrower

                                      -24-
<PAGE>

which is a wholly-owned  Subsidiary of Chadmoore;  (iii) Transfers in compliance
with Section 5.03, (iv) Transfers of Licenses listed on the Disclosure  Schedule
to  non-wholly-owned  Subsidiaries  solely  pursuant  to the  terms of  existing
agreements with the holders of minority  interests in such  Subsidiaries,  which
agreements  are  listed  on the  Disclosure  Schedule,  (v) other  Transfers  of
property for fair  consideration in an amount not exceeding ten percent (10%) of
Adjusted  Consolidated  Tangible Net Worth in any fiscal year, (vi) Transfers of
Excluded  Assets (as defined in the Nextel  Agreement) and (vii) pursuant to the
Nextel Agreement.

         (d)  Distributions.   No  Borrower  shall,  nor  shall  it  permit  its
Subsidiaries  to, (i) pay any dividends or make any  distributions on its Equity
Securities;  (ii) purchase,  redeem,  retire,  defease or otherwise  acquire for
value any of its Equity  Securities  (other than  repurchases by cancellation of
indebtedness  pursuant to the terms of employee stock purchase  plans,  employee
restricted stock  agreements or similar  arrangements in an aggregate amount not
to exceed  $100,000);  (iii)  return  any  capital  to any  holder of its Equity
Securities as such;  (iv) make any  distribution of assets,  Equity  Securities,
obligations or securities to any holder of its Equity Securities as such; or (v)
set apart any sum for any such purpose;  provided,  however,  that (A) Chadmoore
may pay  dividends  payable  solely in its common stock,  (B) any  Subsidiary of
Chadmoore  may  pay  dividends  and  make   distributions   to  Chadmoore  or  a
wholly-owned  Subsidiary  of  Chadmoore,  (C)  Chadmoore may redeem its Series C
Preferred Stock in accordance with the terms of such Series C Preferred Stock as
set forth in its  Certificate of Designation of Rights and Preferences of Series
C  Preferred  Stock in  effect as of the date  hereof,  (D) each  Subsidiary  of
Chadmoore which is a limited  liability  company may make  distributions  in any
fiscal  year to its  members in an amount not to exceed  such  Subsidiary's  net
income for such fiscal and the tax  liabilities  of its members  arising  during
such fiscal year solely from their ownership  interests in such Subsidiary,  and
(E)  Chadmoore  may  make   distributions   to  effectuate  the   reorganization
contemplated by the Nextel Agreement.

         (e) Mergers or  Acquisitions.  Except to effectuate the  reorganization
contemplated by the Nextel Agreement, no Borrower shall, nor shall it permit its
Subsidiaries  to, merge or consolidate  with or into any other Person or acquire
all or  substantially  all of the  capital  stock or assets of  another  Person;
provided,  that any Borrower may merge with and into  Chadmoore and any Borrower
may merge  with and into any  Borrower  which is a  wholly-owned  Subsidiary  of
Chadmoore  so  long as no  Default  or  Event  of  Default  shall  exist  either
immediately prior to or after giving effect thereto.

         (f)  Transactions  With  Affiliates.  No Borrower  shall,  nor shall it
permit its  Subsidiaries  to,  enter into any  contractual  obligation  with any
Affiliate  or engage in any other  transaction  with any  Affiliate  except upon
terms at least as  favorable  to Borrower  as an  arms-length  transaction  with
unaffiliated Persons.

         (g) Indebtedness  Payments.  No Borrower shall, nor shall it permit its
Subsidiaries to, (i) prepay, redeem,  purchase,  defease or otherwise satisfy in
any  manner  prior to the  scheduled  repayment  thereof  any  Indebtedness  for
borrowed  money (other than amounts due under this Loan  Agreement or the Notes,
or the Senior Loan  Agreement  and  related  notes) or lease  obligations,  (ii)
amend,  modify or otherwise  change the terms of any  Indebtedness  for borrowed

                                      -25-
<PAGE>

money (other than the Obligations) or lease  obligations so as to accelerate the
scheduled  repayment thereof or (iii) repay any notes to officers,  directors or
shareholders.

         (h)   Indebtedness.   No  Borrower  shall,  nor  shall  it  permit  its
Subsidiaries  to,  create,  incur,  assume or  permit to exist any  Indebtedness
except Permitted Indebtedness.

         (i)   Investments.   No  Borrower  shall,   nor  shall  it  permit  its
Subsidiaries to, make any Investment except for Permitted Investments.

         (j)  Security  Interest  in  FCC  Licenses.  The  Borrowers  and  their
Subsidiaries  shall not contest the  validity of the security  interest  granted
with respect to FCC Licenses  pursuant to the terms of the  Operative  Documents
and in compliance with FCC regulations.

7.02.    Financial Covenants.  Chadmoore shall maintain:

         (a) Consolidated Total Indebtedness to Adjusted  Consolidated  Tangible
Net Worth Ratio.  As of the last day of each  calendar  quarter,  a ratio of (i)
Consolidated Total Indebtedness minus Subordinated Indebtedness to (ii) Adjusted
Consolidated Tangible Net Worth plus Subordinated  Indebtedness of not more than
2.2:1.00 for each calendar quarter ending in 1999 and not more than 1.7 for each
calendar quarter ending thereafter;

         (b) Current Ratio. As of the last day of each calendar quarter, a ratio
of Current  Assets to Current  Liabilities  of not less than  0.7:1.00  for each
calendar quarter ending in 1999 and 2000 and not less than 1.3 for each calendar
quarter ending thereafter;

         (c) Consolidated  Operating Cash Flow to Consolidated  Interest Expense
and Principal  Repayment  Ratio.  As of the last day of each  calendar  quarter,
commencing  with  the  calendar  quarter  ending  March  31,  2000,  a ratio  of
Consolidated  Operating Cash Flow to Consolidated Interest Expense and Principal
Repayment of not less than  0.7:1.00 for each calendar  quarter  ending in 2000,
not less than  1.8:1:00 for each  calendar  quarter  ending in 2001 and not less
than 3.0 for each calendar quarter ending thereafter;

         (d) Adjusted  Tangible Net Worth. At all times,  Adjusted  Consolidated
Tangible Net Worth plus Subordinated Indebtedness of not less than $18,000,000.

                                  ARTICLE VIII
                                  ------------

                              CONDITIONS PRECEDENT
                              --------------------

8.01.  Closing.  At the time of execution  and delivery of this  Agreement,  the
Borrowers shall have duly executed and/or  delivered to Bank the items set forth
in Part I of Schedule 2.

8.02.  Other  Conditions.  The  obligation  of Bank to make each  Loan  shall be
subject to the execution  and/or delivery to Bank of each of the items set forth
in Part I of Schedule 2 and the satisfaction by the applicable  Borrower of each
condition  set forth in Part II of  Schedule 2 and, if  applicable,  Part III of
Schedule 2..

                                      -26-
<PAGE>

8.03.  Covenant  to  Deliver.  Borrower  agrees  (not  as a  condition  but as a
covenant)  to deliver to Bank each item  required to be  delivered  to Bank as a
condition to a Loan, if the Loan is advanced. Borrower expressly agrees that the
extension  of a Loan  prior to the  receipt  by Bank of any such item  shall not
constitute a waiver by Bank of Borrower's obligation to deliver such item.

                                   ARTICLE IX
                                   ----------

                              DEFAULT AND REMEDIES
                              --------------------

9.01. Events of Default.  An "Event of Default" shall mean the occurrence of one
or more of the following described events:

         (a) Any  Borrower  shall (i) default in the payment of  principal of or
interest on the Loan when the same is due, or (ii) default in the payment of any
expense or other amount payable  hereunder or thereunder for five (5) days after
receipt of written notice from Bank that the same is due; or

         (b) Any Borrower  shall breach any provision of Section  5.03,  Section
6.01(f),  Section 6.01(g),  Section 7.01 and Section 7.02, except that if Senior
Lender shall have waived or otherwise  agreed to forbear  exercising  its rights
under the  comparable  provisions  of the  Senior  Loan  Agreement,  whether  in
writing,  orally,  or through failure to act, then as to such breach there shall
not be an Event of Default hereunder; or

         (c) Any Borrower  shall  default in the  performance  of any  covenant,
agreement or obligation (other than a covenant, agreement or obligation referred
to in, Section 9.01(a) or Section 9.01(b))  contained in any Operative  Document
and such  Borrower  shall fail to cure such  default for a period of twenty (20)
days after  Borrower knew or should have known of such  default,  except that if
Senior Lender shall have waived or otherwise  agreed to forbear  exercising  its
rights under the comparable provisions of the Senior Loan Agreement,  whether in
writing,  orally, or through failure to act, then as to such default there shall
not be an Event of Default hereunder; or

         (d) Any Borrower shall have breached any material term of any agreement
with Senior Lender,  except that if Senior Lender shall have waived or otherwise
agreed to forbear  exercising  its rights  related  to such  breach,  whether in
writing,  orally,  or through failure to act, then as to such breach there shall
not be an Event of Default hereunder; or

         (e) Any  representation or warranty made herein or on a Funding Date by
any Borrower in any Operative Document, or any certificate furnished pursuant to
the  provisions  of any  Operative  Document,  shall prove to have been false or
misleading in any material respect as of the time made or furnished; or

         (f) Any  Operative  Document or any material  term thereof shall in any
material respect cease to be, or any Borrower or any Guarantor shall assert that
any Operative  Document

                                      -27-
<PAGE>

or any material  term thereof is not, a legal,  valid and binding  obligation of
such Borrower or such Guarantor,  as applicable,  enforceable in accordance with
its terms; or

         (g) A  proceeding  shall have been  instituted  in a court of competent
jurisdiction seeking a decree or order for relief in respect of a Borrower in an
involuntary  case under any applicable  bankruptcy,  insolvency or other similar
law  now  or  hereafter  in  effect,  or  for  the  appointment  of a  receiver,
liquidator,  assignee, custodian, trustee (or similar official) of a Borrower or
for any substantial  part of its property,  or for the winding-up or liquidation
of its affairs,  and such proceeding shall remain undismissed or unstayed and in
effect for a period of sixty (60)  consecutive  days or such court shall enter a
decree or order granting the relief sought in such proceeding; or

         (h) Any Borrower  shall  commence a voluntary case under any applicable
bankruptcy,  insolvency or other  similar law now or hereafter in effect,  shall
consent  to the entry of an order for  relief in an  involuntary  case under any
such law,  or shall  consent to the  appointment  of or taking  possession  by a
receiver,  liquidator,  assignee, trustee, custodian (or other similar official)
of a  Borrower  or for any  substantial  part of its  property,  or shall make a
general assignment for the benefit of creditors,  or shall fail generally to pay
its debts as they become due, or shall take any corporate  action in furtherance
of any of the foregoing.

9.02.    Consequences of Event of Default.

         (a) If an Event of Default  specified  under and of clauses (a) through
(f) of Section  9.01 shall  occur and be  continuing,  Bank may (i)  declare the
Loans,  together  with  interest  thereon,  and  all  other  liabilities  of the
Borrowers  hereunder  and  under  the other  Operative  Documents  to be due and
payable  180 days  after  the Event of  Default,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby expressly waived,
and (ii) terminate its commitment to make the Loans and terminate any commitment
to  advance  money or  extend  credit  to or for the  benefit  of the  Borrowers
pursuant to any other agreement or commitment extended by Bank to Borrowers.

         (b) If an Event of Default specified under clause (g) or (h) of Section
9.01 shall occur,  then  immediately and without notice (i) the Loans,  together
with interest thereon,  and all other liabilities of the Borrowers hereunder and
under the other Operative Documents shall automatically  become due and payable,
without  presentment,  demand,  protest or notice of any kind,  all of which are
hereby expressly waived,  and (ii) Bank's commitment  hereunder to make the Loan
and any other  commitment  of Bank to the  Borrowers to advance  money or extend
credit pursuant to any other agreement or commitment shall be terminated.

9.03.  Rights Regarding  Collateral.  The Borrowers agree that when any Event of
Default  has  occurred  and is  continuing,  in addition to the rights set forth
above,  Bank shall have the rights,  options,  duties and  remedies of a secured
party as permitted by law and as set forth in the Security  Agreement,  subject,
however, to all FCC Rules.

                                      -28-
<PAGE>

9.04.  Reinstatement of Rights. This Agreement and the other Operative Documents
shall remain in full force and effect and  continue to be  effective  should any
petition  be filed by or  against  a  Borrower  or any of its  Subsidiaries  for
liquidation or  reorganization,  should a Borrower  become  insolvent or make an
assignment  for the  benefit of  creditors  or should a  receiver  or trustee be
appointed for all or any significant  part of a Borrower's  property and assets,
and shall continue to be effective or be  reinstated,  as the case may be, if at
any time payment and  performance of the  Obligations,  or any part thereof,  is
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee of the  Obligations,  whether as a "voidable
preference,"  "fraudulent  conveyance," or otherwise, all as though such payment
or  performance  had not been made.  In the event that any payment,  or any part
thereof, is rescinded,  reduced,  restored or returned, the Obligations shall be
reinstated  and deemed  reduced  only by such amount paid and not so  rescinded,
reduced, restored or returned. If Bank shall have proceeded to enforce any right
under this Agreement or any other Operative Document by foreclosure, sale, entry
or otherwise, and such proceedings shall have been discontinued or abandoned for
any reason or shall have been determined adversely,  then and in every such case
(unless otherwise ordered by a court of competent  jurisdiction),  Bank shall be
restored  to its  former  position  and  rights  hereunder  with  respect to the
property subject to the security interest created under this Agreement.

                                   ARTICLE X
                                   ---------

                                  MISCELLANEOUS
                                  -------------

10.01.  Modifications,  Amendments or Waivers.  The  provisions of any Operative
Document may be modified,  amended or waived only by a written instrument signed
by the parties thereto.

10.02. No Implied Waivers;  Cumulative Remedies;  Writing Required.  No delay or
failure of Bank in exercising any right,  power or remedy hereunder shall affect
or operate as a waiver thereof; nor shall any single or partial exercise thereof
or any abandonment or discontinuance of steps to enforce such a right,  power or
remedy  preclude any further  exercise  thereof or of any other right,  power or
remedy.  The  rights  and  remedies  hereunder  of Bank are  cumulative  and not
exclusive of any rights or remedies which it would  otherwise  have. Any waiver,
permit,  consent or approval of any kind or character on the part of Bank of any
breach or default  under this  Agreement or any such waiver of any  provision or
condition of this  Agreement  must be in writing and shall be effective  only in
the specified instance and to the extent specifically set forth in such writing.

10.03.  Expenses;  Indemnification.  The  Borrowers  shall pay on demand (i) all
reasonable fees and expenses, including reasonable attorneys' fees and expenses,
incurred by Bank in connection with the preparation,  execution and delivery of,
and the exercise of its duties under,  this  Agreement  and the other  Operative
Documents,   (ii)  all  reasonable  fees  and  expenses,   including  reasonable
attorneys'  fees  and  expenses,   incurred  by  Bank  in  connection  with  the
preparation,  execution  and delivery of  amendments  and waivers  hereunder and
(iii) all reasonable fees and expenses, including reasonable attorneys' fees and
expenses,  incurred by

                                      -29-
<PAGE>

Bank in  connection  with  the  enforcement  or  attempted  enforcement  of this
Agreement or any of the  Obligations  or in preserving  any of Bank's rights and
remedies (including,  without limitation, all such fees and expenses incurred in
connection with any "workout" or restructuring affecting the Operative Documents
or the  Obligations  or any  bankruptcy  or  similar  proceeding  involving  any
Borrower or any of its Affiliates). The Borrowers shall indemnify, reimburse and
hold Bank,  each of Bank's  members,  and each of their  respective  successors,
assigns,  agents,  officers,  directors,  shareholders,   servants,  agents  and
employees harmless from and against all liabilities,  losses, damages,  actions,
suits,  demands,  claims of any kind and nature  (including  claims  relating to
environmental  discharge,   cleanup  or  compliance),  all  costs  and  expenses
whatsoever  to the extent they may be  incurred or suffered by such  indemnified
party  in  connection  therewith  (including   reasonable  attorneys'  fees  and
expenses),  fines,  penalties  (and  other  charges of  applicable  governmental
authorities),  licensing fees relating to any item of  Collateral,  damage to or
loss of use of property  (including  consequential  or special  damages to third
parties or damages to a Borrower's  property),  or bodily  injury to or death of
any person  (including  any agent or employee of a Borrower)  (each, a "Claim"),
directly or indirectly  relating to or arising out of the use of the proceeds of
the Loan,  the  falsity of any  representation  or  warranty  of a Borrower or a
Borrower's  failure  to  comply  with the terms of this  Agreement  or any other
Operative Document during the Term. The foregoing indemnity shall cover, without
limitation, (i) any Claim in connection with a design or other defect (latent or
patent) in any item of equipment included in the Collateral,  (ii) any Claim for
infringement of any patent, copyright,  trademark or other intellectual property
right,  (iii) any Claim  resulting  from the presence on or under or the escape,
seepage,  leakage,  spillage,  discharge,  emission or release of any  Hazardous
Materials  on the  premises  of a  Borrower,  including  any Claims  asserted or
arising under any Environmental  Law, or (iv) any Claim for negligence or strict
or absolute liability in tort; provided,  however,  that the Borrowers shall not
indemnify  Bank for any  liability  incurred by Bank as a result of Bank's gross
negligence or willful misconduct.  Such indemnities shall continue in full force
and effect,  notwithstanding  the expiration or  termination of this  Agreement.
Upon Bank's written demand,  the Borrowers shall assume and diligently  conduct,
at its sole cost and expense,  the entire defense of Bank,  each of its members,
and  each  of  their  respective,   agents,  employees,   directors,   officers,
shareholders,  successors and assigns,  using counsel  reasonably  acceptable to
such indemnitee against any indemnified Claim. The Borrowers shall not settle or
compromise  any Claim against or involving Bank without first  obtaining  Bank's
written consent thereto,  which consent shall not be unreasonably  withheld.  If
Bank elects to assume its own defense in connection  with an indemnified  Claim,
then Bank shall not settle or  compromise  such Claim  without  first  obtaining
Borrower's  written  consent  thereto,  which consent shall not be  unreasonably
withheld,  provided  that if Borrower  does not consent  thereto,  then Borrower
shall post security or a bond in the amount of such Claim for the benefit of the
Bank.

10.04.  Waivers.  (a) Borrower shall give Bank written notice within one hundred
eighty (180) days of obtaining knowledge of the occurrence of any claim or cause
of action it  believes  it has,  or may seek to  assert to allege  against  Bank
whether such claim is based in law or equity,  arising  under or related to this
Agreement  or  any of  the  other  Operative  Documents  or to the  transactions
contemplated  hereby  or  thereby,  or any act or  omission  to act by Bank with
respect hereto or thereto, and that if it shall fail to give such notice to Bank
with  regard to any such claim

                                      -30-
<PAGE>

or cause of  action,  Borrower  shall be  deemed  to have  waived,  and shall be
forever  barred from bringing or asserting  such claim or cause of action in any
suit,  action or  proceeding in any court or before any  governmental  agency or
authority or any arbitrator.

(b)  NO  CLAIM  MAY BE  MADE  BY  ANY  BORROWER  AGAINST  BANK  OR THE  MEMBERS,
AFFILIATES,  DIRECTORS,  OFFICERS, EMPLOYEES, ATTORNEYS OF BANK FOR ANY SPECIAL,
INDIRECT,  CONSEQUENTIAL  OR PUNITIVE  DAMAGES IN RESPECT OF ANY CLAIM  (WHETHER
BASED UPON ANY BREACH OF CONTRACT,  TORT,  BREACH OF STATUTORY DUTY OR ANY OTHER
THEORY OF LIABILITY) ARISING OUT OF OR RELATED TO THE TRANSACTIONS  CONTEMPLATED
BY THIS  AGREEMENT,  OR ANY ACT,  OMISSION  OR  EVENT  OCCURRING  IN  CONNECTION
THEREWITH AND EACH BORROWER  HEREBY WAIVES,  RELEASES AND AGREES NOT TO SUE UPON
ANY CLAIM FOR ANY SUCH  DAMAGES,  WHETHER OR NOT NOW  ACCRUED AND WHETHER OR NOT
KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

10.05. Notices;  Payments.  (a) All notices and other communications given to or
made upon any party hereto in connection with this Agreement shall be in writing
(including  telexed,  telecopied or  telegraphic  communication)  and mailed (by
certified or registered mail), telexed, telegraphed,  telecopied or delivered to
the respective parties, as follows:

              Borrowers:       At the address set forth on the cover page of
                               this Agreement.

              with a
              copy to:         Gray Cary Ware & Freidenrich LLP
                               400 Capitol Mall
                               Suite 2400
                               Sacramento, California  95814
                               Attention:  Gilles S. Attia, Esq.

              Bank:            BARCLAYS BANK PLC
                               222 Broadway
                               New York, New York  10038
                               Telephone No.:  212-412-3355
                               Telecopier No.:  212-412-5306 or 07 or 08
                               Attention: Central Loan Administration/Manager,
                                         Agent Section

or in accordance with any subsequent  written direction from either party to the
other.  All such  notices and other  communications  shall,  except as otherwise
expressly  herein  provided,  be  effective  when  received;  or in the  case of
delivery  by  messenger  or  overnight  delivery  service,   when  left  at  the
appropriate address.

         (b) Unless Bank specifies  otherwise in writing,  all payments shall be
made by wire transfer to:

                                      -31-
<PAGE>

                  Federal Reserve Bank of New York
                  Account No. 026002574 in the name of Barclays Bank PLC
                  Central Loan Administration
                  Control Account No. 050-01910-4
                  Central Loan

10.06.   Termination.  This Agreement shall terminate at the end of the Term.

10.07. Severability.  If any provision of any Operative Document is held invalid
or  unenforceable  to any extent or in any  application,  the  remainder of such
Operative Document and all other Operative Documents, or the application of such
provision to different  Persons or circumstances or in different  jurisdictions,
shall not be affected thereby.

10.08.  Survival. All covenants and agreements of the Borrowers contained herein
or made in writing in  connection  herewith  shall  survive  the  execution  and
delivery of the Operative Documents, the making of Loans hereunder, the granting
of security  and the  issuance of the Notes.  All  representations  and warrants
shall be made upon the  execution  and delivery of the  Operative  Documents and
upon the  making of each  Loan;  provided  that the right to declare an Event of
Default or bring an action  for  damages or  exercise  any other  remedy if such
representations  and  warranties  are found to have been  false in any  material
respect when made shall  survive the  execution  and  delivery of the  Operative
Documents and the making of each Loan.

10.09.  Governing Law. This  Agreement,  the other  Operative  Documents and the
rights and  obligations  of the parties  hereto and thereto shall be governed by
and construed and enforced in accordance with the laws of the State of New York.

10.10.  Successors and Assigns. This Agreement and the other Operative Documents
shall be binding  upon and inure to the benefit of Bank,  all future  holders of
the Notes, the Borrowers and their respective  successors and permitted assigns,
except  that no  Borrower  may assign or transfer  its rights  hereunder  or any
interest  herein  other than as  contemplated  by Section  7.03(f) of the Nextel
Agreement  without the prior written consent of Bank. Bank may sell to any other
entity (a  "Participant")  participation  interests in Bank's  rights under this
Agreement and the other Operative  Documents;  provided that notwithstanding the
sale of participation  or assignment of rights by Bank hereunder,  the Borrowers
shall continue to deal solely and directly with one Bank in connection with this
Agreement  and the other  Operative  Documents.  Bank may disclose the Operative
Documents and any other financial or other information relating to the Borrowers
or any Subsidiary to any potential  Participant,  provided that such Participant
agrees to protect the  confidentiality  of such documents and information  using
the same measures that it uses to protect its own confidential information.

                                      -32-
<PAGE>

10.11.   Counterparts.   This  Agreement  may  be  executed  in  any  number  of
counterparts and by different parties hereto on separate  counterparts,  each of
which,  when so  executed  and  delivered,  shall be an  original,  but all such
counterparts shall together constitute one and the same instrument.

10.12. Further Assurances.  Each Borrower will, at its own expense, from time to
time do, execute,  acknowledge and deliver all further acts, deeds, conveyances,
transfers and  assurances,  and all financing and  continuation  statements  and
similar  notices,  reasonably  necessary  or proper  for the  perfection  of the
security interest being herein provided for in the Collateral, whether now owned
or hereafter acquired.

10.13.  Confidentiality.  All information  (other than periodic reports filed by
Chadmoore  with  the  Securities  and  Exchange  Commission)  disclosed  by  the
Borrowers to Bank in writing or through  inspection  pursuant to this  Agreement
shall be considered confidential.  Bank agrees to use the same degree of care to
safeguard and prevent  disclosure of such confidential  information as Bank uses
with  its  own  confidential  information,  but  in any  event  no  less  than a
reasonable degree of care. Bank shall not disclose such information to any third
party  (other than  Bank's  members,  Bank's or Bank's  member's  attorneys  and
auditors  subject to the same  confidentiality  obligation set forth herein) and
shall use such  information  only for purposes of evaluation of its extension of
credit to Borrower and the exercise of Bank's rights and the  enforcement of its
remedies  under  this  Agreement  and  the  other  Operative   Agreements.   The
obligations of  confidentiality  shall not apply to any information that (a) was
known to the public prior to disclosure by a Borrower under this Agreement,  (b)
becomes known to the public  through no fault of Bank,  (c) is disclosed to Bank
by a third  party'  having a legal  right  to make  such  disclosure,  or (d) is
independently developed by Bank.

10.14.  Jury Trial.  EACH BORROWER AND BANK, TO THE FULLEST EXTENT  PERMITTED BY
APPLICABLE LAW, HEREBY  IRREVOCABLY  WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY
ISSUE RELATING HERETO IN ANY ACTION,  PROCEEDING, OR COUNTERCLAIM ARISING OUT OF
OR RELATING TO THIS AGREEMENT.

10.15.  Payments Free of Taxes,  Etc. All payments  made by the Borrowers  under
this  Agreement  shall be made by the  Borrowers  free and clear of and  without
deduction for any and all present and future taxes, levies, charges,  deductions
and withholdings.  In addition, the Borrowers shall pay upon demand any stamp or
other  taxes,  levies  or  charges  of  any  jurisdiction  with  respect  to the
execution,   delivery,   registration,   performance  and  enforcement  of  this
Agreement.  If any taxes,  levies,  charges or other  amounts are required to be
withheld from any amounts payable to Bank, hereunder,  the amounts so payable to
Bank shall be increased to the extent  necessary to yield to Bank (after payment
of all  such  amounts)  any  such  amounts  payable  hereunder  in the  amounts,
specified in this  Agreement.  Upon request by Bank, the Borrowers shall furnish
evidence  satisfactory to Bank that all requisite  authorizations  and approvals
by, and

                                      -33-
<PAGE>

notices to and filings with, governmental authorities and regulatory bodies have
been  obtained and made and that all  requisite  taxes,  levies and charges have
been paid.

10.16. Consent to Jurisdiction;  Venue. All judicial proceedings with respect to
this Agreement and the other Operative  Documents may be brought in any state or
federal court of competent  jurisdiction  in the Borough of Manhattan,  City and
State of New  York,  and by  execution  and  delivery  of this  Agreement,  each
Borrower accepts for itself and in connection with its properties, generally and
unconditionally,  the nonexclusive  jurisdiction of such courts, and irrevocably
agrees to be bound by any  judgment  rendered  thereby in  connection  with this
Agreement.  Each Borrower irrevocably waives any right it may have to assert the
doctrine  of forum  non  conveniens  or to  object  to venue to the  extent  any
proceeding is brought in accordance with this Section. Any action with regard to
Collateral,  may be brought wherever such Collateral is located.  Nothing herein
shall affect the right of Bank to bring proceedings against a Borrower in courts
of any jurisdiction.

         [Remainder of page intentionally left blank]

                                      -34-
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto,  by their officers  thereunto
duly authorized, have executed this Agreement as of the day and year first above
written.

Bank:                                       BARCLAYS BANK PLC

                                            By: /s/ Philip Capparis
                                            Name:  Philip Capparis
                                            Title:  Director

Borrowers:                                  CHADMOORE WIRELESS GROUP, INC.

                                            By: /s/ Robert W. Moore
                                            Name: Robert W. Moore
                                            Title: President

                                      -35-
<PAGE>

SCHEDULES

1        List of Subsidiaries
2        Conditions Precedent

EXHIBITS

A        Form of Secured Promissory Note
A-1      Form of Pledge Letter
B        Form of Borrower Joinder
C        Form of Guaranty
D        Form of Security Agreement

<PAGE>

                                   SCHEDULE 1

                              LIST OF SUBSIDIARIES

                  CHADMOORE COMMUNICATIONS, INC.

                  PTT TANNER, INC.

                  PTT BEACON HILL, INC.

                  PTT OF NEVADA, INC.

                  CMRS SYSTEMS, INC.

                  CHADMOORE COMMUNICATIONS OF TENNESSEE, INC.

                  PTT COMMUNICATIONS OF RICHMOND, LLC

                  PTT MAPLE, INC.

                  PTT COMMUNICATIONS OF HUNTSVILLE, LLC

                  PTT BURTON, INC.

                  PTT COMMUNICATIONS OF FORT WAYNE, LLC

                  PTT COMMUNICATIONS OF ROANOKE, LLC

                  PTT TRISTAN, INC.

                  PTT COMMUNICATIONS OF AUSTIN, LLC

                  PTT COMMUNICATIONS OF JACKSONVILLE, LLC

                  PTT COMMUNICATIONS OF VIRGINIA BEACH, LLC

                  PTT ROSELAND, INC.

                  PTT ARTINA, INC.

                  PTT FRANKLIN, INC.

                  PTT CHACO, INC.

                  800 SMR NETWORK, INC.

                  PTT COMMUNICATIONS OF BATON ROUGE LIMITED

<PAGE>

                  PTT COMMUNICATIONS OF LAKE CHARLES, LLC

                  PTT COMMUNICATIONS OF BAY CITY, LLC

<PAGE>
                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

PART I:
------

         At the time of execution  and delivery of this  Agreement,  there shall
also have been delivered to Lender:

         (a) The Guaranty;

         (b) The Security Agreement;

         (c) The Subordination Agreement;

         (d) An Initial Pledge Letter;

         (e) A favorable opinion of corporate  counsel for the Borrowers,  dated
             as of the  closing  date,  in form and  substance  satisfactory  to
             Lender.

         (f) Copies,  certified  by the  Secretary  or  Assistant  Secretary  of
             Chadmoore  as of the  closing  date,  of all  documents  evidencing
             action taken by such Borrower  authorizing the execution,  delivery
             and  performance  of the Operative  Documents to which  Borrower or
             such Guarantor is a party,  in form and substance  satisfactory  to
             Lender and its counsel;

         (g) Good  standing  certificates  for  Chadmoore  from (i) such party's
             state of  incorporation,  and (ii) the state in which such  party's
             principal place of business is located,  together with certificates
             of the applicable  governmental  authorities  that Borrower or such
             Guarantor is in compliance with the franchise tax laws of each such
             state, each dated as of a recent date;

         (h) All necessary consents of shareholders and other third parties with
             respect  to  the  execution,   delivery  and  performance  of  this
             Agreement,  the Guaranty, the Security Agreement, the Notes and the
             other Operative Documents;

         (i) Schedules  and  Exhibits  to the  Agreement  in form and  substance
             satisfactory to Lender;

         (j) True and correct copies of schedules to Senior Credit Agreement;

         (k) Loan  Request  (timely  made in  advance  of  funding  as if Credit
             Agreement then in effect)

         (l) A Disclosure Schedule in form and substance satisfactory to Lender.

<PAGE>

PART II
-------

         On or prior to the  Funding  Date of each  Loan,  each of the items set
forth in Part I of this  Schedule 2 shall have been  delivered to Lender and the
following conditions shall have been satisfied or waived by Lender:

         (a) Each  Borrower  shall  have  provided  to  Lender  such  documents,
             instruments   and  agreements  as  Lender  shall  have   reasonably
             requested to evidence the  perfection  and priority of the security
             interests  granted to Lender  pursuant to the  Security  Agreement,
             including  form UCC-1  Financing  Statements,  duly executed by the
             applicable Borrower;

         (b) Each new Subsidiary of Borrower  which has not previously  become a
             party to the Loan Agreement,  Security  Agreement and the Guaranty,
             shall execute and deliver and become a party to the Loan Agreement,
             Security Agreement and the Guaranty;

         (c) No  Event  of  Default  or  Default  shall  have  occurred  and  be
             continuing;

         (d) The representations and warranties  contained in this Agreement and
             the other  Operative  Documents  to which each  Borrower is a party
             shall be true and  correct in all  material  respects as if made on
             such Funding Date; and

         (e) Each of the Operative Documents remains in full force and effect.

PART III

         Conditions precedent to loans to Subsidiaries.

         (a) Resolutions;

         (b) Opinion of Counsel;

         (c) Incumbency;

         (d) The  applicable  Borrower shall have duly executed and delivered to
             Lender a Note prepared by Lender with respect to the Loan; and

         (e) UCCs.

                                      -2-
<PAGE>

                                    EXHIBIT A

                      SUBORDINATED SECURED PROMISSORY NOTE

$32,500,000                                                       Las Vegas, NV
                                                                August 31, 2000

                  Chadmoore Wireless Group, Inc., a Colorado  corporation,  (the
"Borrower"), FOR VALUE RECEIVED, hereby promises to pay to the order of Barclays
Bank PLC (the  "Bank") at its  offices  as  specified  in the  Credit  Agreement
referred to below,  or such other  place as may be  designated  by Bank,  on the
dates specified in the Credit Agreement, the principal sum of THIRTY-TWO MILLION
FIVE HUNDRED  THOUSAND DOLLARS  ($32,500,000),  or if less, the aggregate unpaid
principal  amount of all Advances,  made by the Bank to the Borrower,  in lawful
money of the  United  States of  America  and in  immediately  available  funds.
Capitalized  terms not defined  herein shall have the meanings given them in the
Credit Agreement referred to below.

                  The  Borrower  promises  also to pay  interest  on the  unpaid
principal amount hereof in like money at said office for the account of the Bank
from the date hereof until such principal  amount is paid in full at the rate or
rates per annum which shall be determined in accordance  with the  provisions of
the Credit Agreement dated as of August 31, 2000,  among Borrower,  Bank and the
other  parties  thereto (as such  Credit  Agreement  may be  amended,  restated,
modified  or  supplemented  from time to time,  the  "Credit  Agreement"),  said
interest  to be payable on the dates  specified  in the  Credit  Agreement.  All
unpaid  principal and interest shall in any event be payable not later than June
30, 2002.

                  This Note is the Secured  Promissory  Note  referred to in the
Credit  Agreement and is entitled to the benefits  thereof.  This Note evidences
Advances made by the Bank to the Borrower.  This Note is subject to  prepayment,
in whole or in part, as specified in the Credit  Agreement.  In case an Event of
Default shall occur and be continuing,  the principal of and accrued interest on
this Note may become or may be  declared to be due and payable in the manner and
with the effect provided in the Credit Agreement.

                  This Note is secured by and  entitled  to the  benefits of the
Security Agreement and reference is hereby made to the Credit Agreement and such
Security  Documents for a description of the properties  mortgaged,  pledged and
assigned,  the nature and extent of the collateral and the rights of the parties
to the Security Agreement in respect of such collateral.

                  The Borrower hereby waives  presentment,  protest or notice of
any kind in connection with this Note other than notices  required by the Credit
Agreement.

                  This  Note  shall  be  construed  in  accordance  with  and be
governed  by the  law of the  State  of New  York ,  without  giving  effect  to
principles of conflicts of law.

                                      CHADMOORE WIRELESS GROUP, INC.

                                      By:
                                         ---------------------------------------
                                           Name:

                                      A-1
<PAGE>

                                           Title:

                                      A-2
<PAGE>
                                                                     Schedule I

<TABLE>
<CAPTION>
                           LOAN AND REPAYMENT SCHEDULE

======================== ====================== ====================== ====================== ======================
                               Amount of Principal
                                                Repayment              Unpaid Principal       Notation Made By
Date                     Amount of Loan                                Balance
<S>                      <C>                    <C>                    <C>                    <C>
------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

======================== ====================== ====================== ====================== ======================
</TABLE>

                                      A-3
<PAGE>

                                    EXHIBIT B

                                     FORM OF

                                BORROWER JOINDER

THIS  BORROWER  JOINDER (this  "Agreement"),  dated as of  __________,  ____, is
executed by [SUBSIDIARY], a ___________ [corporation] [partnership] [etc.] ("New
Subsidiary"), in favor of BARCLAYS BANK PLC (the "Bank").

                                    RECITALS

         A. Pursuant to a Credit Agreement dated as of August 31, 2000 (as
amended from time to time, the "Loan Agreement"), among Chadmoore Wireless
Group, Inc. ("Chadmoore") and certain Subsidiaries of Chadmoore (together with
Chadmoore, the "Borrowers") listed therein and Lender, Lender has agreed to
extend loans to Borrowers upon the terms and subject to the conditions set forth
therein.

         B. The Lender's obligation to extend loans to Borrowers under the Loan
Agreement is subject, among other conditions, to receipt by lender of a
Guaranty, dated as of the August ___, 2000 (the "Guaranty"), duly executed by
Chadmoore and each of its Subsidiaries and a Security Agreement, dated as of
March 2, 1999 (the "Security Agreement") duly executed by Chadmoore and each of
its Subsidiaries.

         C. Pursuant to Section 6.01(g) of the Loan Agreement, each Subsidiary
of Chadmoore that requests a Loan under the Credit Agreement is required to
become a Borrower under the Loan Agreement, and each new Subsidiary created is
required to become a Guarantor under the Guaranty and a Grantor under the
Security Agreement, by delivering and executing this Agreement to the Lender.

         D. New Subsidiary is a [new] Subsidiary of Chadmoore and expects to
derive substantial direct and indirect benefit from the transactions
contemplated by the Loan Agreement.

                                    AGREEMENT

         NOW,  THEREFORE,  in  consideration of the above recitals and for other
good and  valuable  consideration,  the receipt and adequacy of which are hereby
acknowledged, New Subsidiary hereby agrees with Lender, as follows:

         1. Definitions and Interpretation. Unless otherwise defined herein, all
capitalized terms used herein and defined in the Loan Agreement shall have the
respective meanings given

                                      C-1
<PAGE>

to those terms in the Loan Agreement. New Subsidiary acknowledges receipt of
copies of the Loan Agreement, the Guaranty, the Security Agreement and the other
Operative Documents.

         2. Representations and Warranties. On and as of the date of this
Agreement (the "Effective Date") and for the benefit of the Lender, New
Subsidiary hereby makes each of the representations and warranties made by (i)
each Borrower in the Loan Agreement, (ii) each Guarantor in the Guaranty and
(iii) each Grantor in the Security Agreement.

         3. Agreement to be Bound. New Subsidiary agrees that, on and as of the
Effective Date, it shall become a Borrower under the Loan Agreement, a Guarantor
under the Guaranty and a Grantor under the Security Agreement and shall be bound
by all the provisions of the Loan Agreement, the Guaranty and the Security
Agreement to the same extent as if New Subsidiary had executed the Loan
Agreement, the Guaranty and the Security Agreement on the Closing Date.

         4. Waiver. Without limiting the generality of the waivers in the
Guaranty, New Subsidiary specifically agrees to be bound by the Loan Agreement,
the Guaranty and the Security Agreement and waives any right to notice of
acceptance of its execution of this Agreement and of its agreement to be bound
by the Loan Agreement, the Guaranty and the Security Agreement.

         5. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

         IN WITNESS  WHEREOF,  New  Subsidiary  has caused this  Agreement to be
executed by its duly authorized officer.

                                              [SUBSIDIARY]

                                              By: _________________________
                                                  Name:
                                                  Title:

Address:

[                              ]
[                              ]
[                              ]
Attn:
Telephone:
Facsimile:

                                      C-2
Exhibit 10.4
================================================================================

                          SUBORDINATED CREDIT AGREEMENT

                           Dated as of August 31, 2000

                                      among

                                BARCLAYS BANK PLC
                                  222 Broadway
                               New York, NY 10038

                                     as Bank

                                       and

                         CHADMOORE WIRELESS GROUP, INC.
                             a Colorado corporation
                             2875 East Patrick Lane
                             Las Vegas, Nevada 89120

              (AND ANY OF ITS SUBSIDIARIES WHO MAY BECOME PARTIES)
                                  as Borrowers

================================================================================

<PAGE>
         This SUBORDINATED  CREDIT AGREEMENT,  dated as of August 31, 2000 (this
"Agreement"), is entered into by and among BARCLAYS BANK PLC ("Bank"), CHADMOORE
WIRELESS  GROUP,  INC.  ("Chadmoore"),  and any of its  SUBSIDIARIES  LISTED  ON
SCHEDULE  1 HERETO  (collectively,  the  "Chadmoore  Subsidiaries")  who  become
parties pursuant to Section  6.01(g)(i) (such Chadmoore  Subsidiaries,  together
with Chadmoore, the "Borrowers").

                                    ARTICLE I

                                 INTERPRETATION

1.01. Certain  Definitions.  Unless otherwise indicated in this Agreement or any
other Operative  Document,  the following terms,  when used in this Agreement or
any other Operative Document, shall have the following respective meanings:

         "Adjusted Base Rate" means,  for any day, a rate per annum equal to the
greater  of (a) the Prime Rate in effect on such day and (b) the  Federal  Funds
Effective  Rate in effect on such day plus 1/2 of 1%. Any change in the Adjusted
Base Rate due to a change in the Prime Rate or the Federal Funds  Effective Rate
shall be effective  from and including the effective  date of such change in the
Prime Rate or the Federal Effective Rate, respectively.

         "Adjusted  Consolidated  Tangible Net Worth" shall mean, as of any date
of  determination,  the sum of the capital stock and additional  paid-in capital
plus  retained  earnings (or minus  accumulated  deficit) of  Chadmoore  and its
Subsidiaries  minus  intangible  assets,  on a consolidated  basis determined in
accordance with GAAP, plus the aggregate book value of all FCC Licenses owned by
Chadmoore and its Subsidiaries.

         "Adjusted LIBO Rate" means, with respect to any Eurodollar Loan for any
Interest Period, an interest rate per annum (rounded upwards,  if necessary,  to
the  next  1/16 of 1%)  equal to (a) the LIBO  Rate  for  such  Interest  Period
multiplied by (b) the Statutory Reserve Rate.

         "Affiliate"  with respect to any Person,  shall mean (i) any  director,
officer or  employee of such  Person,  (ii) any Person  directly  or  indirectly
controlling  or  controlled by or under direct or indirect  common  control with
such Person, and (iii) any Person  beneficially  owning or holding 5% or more of
any class of voting  securities of such Person or any  corporation of which such
Person beneficially owns or holds, in the aggregate,  5% or more of any class of
voting  securities  The  term  "control"  means  the  possession,   directly  or
indirectly,  of the power to direct or cause the direction of the management and
policies of a Person,  whether  through the ownership of voting  securities,  by
contract or otherwise.  The term "Affiliate," when used herein without reference
to any Person, shall mean an Affiliate of Chadmoore.

         "Agreement"  has the  meaning  given to that  term in the  introductory
paragraph hereof.

         "Bank" has the meaning given to that term in the introductory paragraph
hereof.

         "Borrowers"  has the  meaning  given to that  term in the  introductory
paragraph hereof.

                                       -1-
<PAGE>

         "Business  Day"  shall mean any day other  than a  Saturday,  Sunday or
public  holiday  under  the laws of New York or Nevada or any other day on which
banking institutions are authorized or obligated to close in New York or Nevada.

         "Chadmoore"  has the  meaning  given to that  term in the  introductory
paragraph hereof.

         "Chadmoore  Subsidiaries"  has the  meaning  given to that  term in the
introductory paragraph hereof.

         "Change in Law" means (a) the adoption of any law,  rule or  regulation
after the date of this Agreement,  (b) any change in any law, rule or regulation
or in the  interpretation or application  thereof by any Governmental  Authority
after the date of this  Agreement or (c) compliance by Bank (or, for purposes of
Section 2.06, by any lending office of Bank or by such Bank's  holding  company,
if any) with any  request,  guideline  or  directive  (whether or not having the
force of law) of any  Governmental  Authority  made or issued  after the date of
this Agreement.

         "Claim" has the meaning given to that term in Section 10.03.

         "Collateral"  has  the  meaning  given  to that  term  in the  Security
Agreement.

         "Commitment Fee" has the meaning given to that term in Section 2.10.

         "Commitment  Termination Date" means the earlier of (i) March 30, 2002,
(ii) the date of the closing under the Nextel  Agreement,  (iii)  termination of
the Nextel  Agreement  pursuant  to the terms  thereof,  or (iv) the time when a
voluntary  case is commenced  by any  Borrower or a  proceeding  is commenced by
seeking a decree or order for relief in respect of any Borrower is instituted in
a court of competent jurisdiction under any applicable bankruptcy, insolvency or
similar law.

         "Communications  Act" shall  mean the  Communications  Act of 1934,  as
amended and the rules and regulations issued thereunder,  as in effect from time
to time.

         "Consolidated  Income Tax  Expense"  shall  mean,  with  respect to any
period, the provision for federal,  state, local, foreign and other income taxes
of  Chadmoore  and  its   Subsidiaries  for  such  period  as  determined  on  a
consolidated basis in accordance with GAAP.

         "Consolidated  Interest  Expense"  shall  mean ,  with  respect  to any
period,  without  duplication,  the sum of (i) the interest expense of Chadmoore
and its  Subsidiaries  for such period as determined on a consolidated  basis in
accordance with GAAP,  including,  without  limitation,  (a) any amortization of
debt  discount,  (b)  the net  cost  under  interest  rate  hedging  arrangement
(including  any  amortization  of  discounts),  (c) the interest  portion of any
deferred payment obligation,  (d) all commissions,  discounts and other fees and
charges owed with respect to letters of credit and bankers' acceptance financing
and similar  transactions and (e) all capitalized interest and accrued interest,
(ii) the interest  component of capital leases paid, accrued and/or scheduled to
be paid or accrued by Chadmoore and its Subsidiaries during such period as

                                       -2-
<PAGE>

determined on a consolidated basis in accordance with GAAP, (iii) the portion of
any rental obligation in respect of any sale/leaseback  transaction allocable to
interest  expense  (determined as if such were treated as a capital lease),  and
(iv) the amount of dividends and  distributions in respect of Preferred Stock or
Disqualified  Stock  paid by  Chadmoore's  Subsidiaries  to a Person  other than
Chadmoore or any Subsidiary of Chadmoore or by Chadmoore during such period.

         "Consolidated  Net Income" shall mean, with respect to any period,  the
net  income  (or  loss)  of  Chadmoore  and its  Subsidiaries  for  such  period
determined on a consolidated  basis in accordance  with GAAP,  adjusted,  to the
extent  included  in  calculating  such  consolidated  net  income  (or loss) by
excluding, without duplication,  (i) all extraordinary,  unusual or nonrecurring
gains or losses  and all gains or losses  from  sales or other  dispositions  of
assets out of the ordinary  course of business (net of taxes,  fees and expenses
relating to the  transaction  giving rise  thereto) for such  period,  (ii) that
portion of such net income (or loss)  derived from or in respect of  Investments
in Persons other than Chadmoore's Subsidiaries, except to the extent of any cash
dividends actually received by Chadmoore or a Subsidiary of Chadmoore  (subject,
in the  case  of any  Subsidiary,  to the  provisions  of  clause  (vi)  of this
definition); (iii) any gain or loss, net of taxes, realized upon the termination
of any employee  pension  benefit plan during such period,  (iv) that portion of
such net income (or loss) allocable to minority  interests in any Subsidiary for
such  period,  (v) net  income  (or  loss) of any  other  Person  combined  with
Chadmoore or any Subsidiary on a "pooling of interests"  basis  attributable  to
any  period  prior to the date of  combination  and (vi) the net  income  of any
Subsidiary  for such period to the extent that the  declaration  of dividends or
similar  distributions  by that  Subsidiary  of that  income  is not at the time
permitted,  directly or indirectly,  by operation of the terms of its charter or
any  agreement,   instrument,   judgment,   decree,   order,  statute,  rule  or
governmental regulations applicable to that Subsidiary or its stockholders.

         "Consolidated  Operating  Cash Flow"  shall mean,  with  respect to any
period,   Consolidated  Net  Income  for  such  period  (a)  increased  (without
duplication),  to the extent  deducted  in  arriving  at such  Consolidated  Net
Income, by the sum of (i) Consolidated  Income tax expense for such period; (ii)
Consolidated   Interest  Expense  for  such  period;  and  (iii)   depreciation,
amortization  and any other  non-cash items for such period of Chadmoore and its
Subsidiaries  (other than any non-cash item which  requires the accrual of, or a
reserve for, cash charges for any future period), including, without limitation,
amortization of capitalized debt issuance costs for such period,  all determined
on a  consolidated  basis in  accordance  with GAAP,  and (b)  decreased  by any
non-cash items (including non-recurring gains and non-recurring items of income)
to the extent they increased  Consolidated Net Income for such period (including
any partial or complete reversal of reserves taken in a prior period).

         "Consolidated  Total  Indebtedness"  shall  mean  as  of  any  date  of
determination,  an amount equal to the aggregate  amount of all  Indebtedness of
Chadmoore and its Subsidiaries outstanding as of such date of determination.

         "Credit Amount" shall mean the maximum amount that Bank is committed to
lend under the terms of this Agreement.

                                       -3-
<PAGE>

         "Current  Assets" shall mean the aggregate amount of the current assets
of Chadmoore and its Subsidiaries  which would be set forth on the balance sheet
of Chadmoore in accordance with GAAP.

         "Current  Liabilities"  shall mean the aggregate  amount of the current
liabilities  of Chadmoore and its  Subsidiaries  which would be set forth on the
balance  sheet of Chadmoore in accordance  with GAAP,  excluding (i) the current
portion  of the Loans  made  pursuant  to this  Agreement  and (ii) the  current
portion of Indebtedness to the Senior Lender.

         "Default"  shall mean any event  which with the  passing of time or the
giving of notice or both would become an Event of Default hereunder.

         "Disclosure  Schedule" shall mean the disclosure  schedule  attached as
Schedule 3 to the Senior Loan Agreement.

         "Disqualified  Stock"  means,  with respect to any Person,  any capital
stock  which,  by its terms (or by the terms of any  security  into  which it is
convertible  or for  which it is  exchangeable),  or upon the  happening  of any
event,  matures or becomes  mandatorily  redeemable,  pursuant to a sinking fund
obligation or otherwise,  or becomes exchangeable for Indebtedness at the option
of the  holder  thereof,  or  becomes  redeemable  at the  option of the  holder
thereof,  in whole or in part,  on or prior to the  final  maturity  date of the
Loans.

         "Environmental  Law" shall mean the Resource  Conservation and Recovery
Act  of  1987,  the  Comprehensive  Environmental  Response,   Compensation  and
Liability Act, and any other federal,  state,  local,  foreign or  international
statute,  law, ordinance,  code, rule,  regulation,  order, writ,  judgment,  or
decree (in each case having the force of law) (i) regulating, imposing liability
or standards of conduct  concerning the manufacture,  processing,  distribution,
use,  treatment,  storage,  disposal,  transport,  or handling of any  Hazardous
Material,  as now or at any time hereafter in effect,  or (ii) pertaining to the
protection of the health and safety of employees or the public.

         "Equity  Securities"  of any Person  shall  mean (a) all common  stock,
preferred stock,  participations,  shares, partnership interests or other equity
interests in and of such Person (regardless of how designated and whether or not
voting or non-voting) and (b) all warrants,  options and other rights to acquire
any of the foregoing.

         "ERISA" means the Employee  Retirement  Income Security Act of 1974, as
amended from time to time,  and including any rules or  regulations  promulgated
thereunder.

         "ERISA  Affiliate"  has  the  meaning  given  to that  term in  Section
3.01(m).

         "Event of Default" has the meaning given to that term in Section 9.01.

         "Facility"  shall mean any facility being operated by the Borrowers and
their  Subsidiaries  in connection  with the  management  and operation of their
business.

                                       -4-
<PAGE>

         "FCC" shall mean the Federal Communications Commission or any successor
thereto.

         "FCC  Licenses"  shall  mean  any  FCC  license,  permit,  certificate,
ordinance, approval or other authorization,  or any renewal or extension thereof
issued by the FCC.

         "FCC Rules" shall mean the rules, regulations and policies of the FCC.

         "Federal Funds Effective Rate" means, for any day, the weighted average
(rounded  upwards,  if  necessary,  to the  next  1/100  of 1%) of the  rates on
overnight Federal funds  transactions with members of the Federal Reserve System
arranged by Federal funds brokers,  as published on the next succeeding Business
Day by the  Federal  Reserve  Bank  of New  York,  or,  if  such  rate is not so
published for any day that is a Business Day, the average (rounded  upwards,  if
necessary,  to the  next  1/100 of 1%) of the  quotations  for such day for such
transactions received by the Bank from three Federal funds brokers of recognized
standing selected by it.

         "Federal  Reserve  Board"  means the Board of  Governors of the Federal
Reserve System or any successor thereto.

         "Financial  Statements"  shall  mean,  with  respect to any  accounting
period for any Person, statements of operations, retained earnings and cash flow
of such Person for such period,  and balance sheets of such Person as of the end
of such period,  setting forth in each case in comparative  form figures for the
corresponding  period in the preceding fiscal year if such period is less than a
full fiscal year or, if such period is a full fiscal year, corresponding figures
from the  preceding  fiscal  year,  all  prepared  in  reasonable  detail and in
accordance with GAAP.  Unless otherwise  indicated,  each reference to Financial
Statements  of any  Person  shall be  deemed  to refer to  Financial  Statements
prepared on a consolidated basis.

         "Funding  Date"  shall  mean  any date on which a Loan is made to or on
account of a Borrower under this Agreement.

         "GAAP"  shall  mean  generally  accepted   accounting   principles  and
practices  as in  effect in the  United  States  of  America  from time to time,
consistently applied.

         "Governmental  Authority" shall mean any domestic or foreign  national,
state or local government,  any political  subdivision  thereof, any department,
agency,  authority  or  bureau  of any of the  foregoing,  or any  other  entity
exercising  executive,  legislative,   judicial,  regulatory  or  administrative
functions of or pertaining to government.

         "Guarantor" has the meaning given in the Guaranty.

         "Guaranty" means the Guaranty in the form attached hereto as Exhibit C.

         "Hazardous Material" means any hazardous,  dangerous or toxic material,
pollutant, waste or other substance, whether solid, liquid or gaseous in nature,
which is  regulated  by any  federal,  state,  local,  foreign or  international
governmental authority.

                                       -5-
<PAGE>

         "Indebtedness" shall mean, with respect to Chadmoore or any Subsidiary,
the aggregate amount of, without duplication, (a) all obligations of such Person
for  borrowed  money,  (b) all  obligations  of such Person  evidenced by bonds,
debentures,   notes  or  other  similar  instruments,   (c)  all  non-contingent
reimbursement or payment obligations with respect to Surety Instruments, (d) all
obligations  with  respect to capital  leases,  (e) all  obligations  created or
arising  under any  conditional  sale or other title  retention  agreement  with
respect to property acquired by such Person,  (f) all obligations of such Person
to pay the  deferred  purchase  price of property or services  (excluding  trade
payables aged less than 180 days),  (g) all obligations or liabilities of others
secured by a lien on any asset of such Person, whether or not such obligation or
liability is assumed, (h) all obligations or liabilities of others guaranteed by
such Person;  and (i) any other obligations or liabilities which are required by
GAAP to be shown as debt on the balance sheet of such Person.  Unless  otherwise
indicated,  the term "Indebtedness"  shall include all Indebtedness of Chadmoore
and the Subsidiaries.

         "Interest  Payment  Date" means (a) with respect to any Base Rate Loan,
the  last  Business  Day of each  calendar  month  and (b) with  respect  to any
Eurodollar Loan, the last Business Day of the Interest Period  applicable to the
Borrowing  of  which  such  Loan is a party  and,  in the  case of a  Eurodollar
Borrowing  with an Interest  Period of more than three  months'  duration,  each
Business  Day  prior to the last day of such  Interest  Period  that  occurs  at
intervals of three months' duration after the first day of such Interest Period.

         "Interest Period" means with respect to any Eurodollar  Borrowing,  the
period  commencing on the date of such  Borrowing and ending on the  numerically
corresponding  day in the calendar  month that is one, two,  three or six months
thereafter, as the Borrower may elect; provided, that (i) if any Interest period
would end on a day other than a Business  Day,  such  Interest  Period  shall be
extended  to the next  succeeding  Business  Day  unless  such  next  succeeding
Business Day would fall in the next calendar  month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest Period
that  commences on the last  Business  Day of a calendar  month (or on a day for
which there is no  numerically  corresponding  day in the last calendar month of
such  Interest  Period)  shall end on the last Business Day of the last calendar
month of such  Interest  Period.  For purposes  hereof,  the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall
be the  effective  date of the most recent  conversion or  continuation  of such
Borrowing.

         "Investment"  of any Person  shall mean any loan or advance of funds by
such Person to any other Person (other than advances to employees of such Person
for moving and travel expense,  drawing accounts and similar expenditures in the
ordinary  course of business),  any purchase or other  acquisition of any Equity
Securities or Indebtedness of any other Person, any capital contribution by such
Person to or any other investment by such Person in any other Person (including,
without  limitation,  any  Indebtedness  incurred  by such  Person  of the  type
described in clauses (a) and (b) of the definition of  "Indebtedness"  on behalf
of any other Person);  provided,  however,  that  Investments  shall not include
accounts receivable or other indebtedness owed by customers of such Person which
are  current  assets  and arose  from sales or  non-exclusive  licensing  in the
ordinary course of such Person's business.

                                       -6-
<PAGE>

         "LIBO Rate" means,  with respect to any  Eurodollar  Borrowing  for any
Interest Period,  the rate appearing on Page 3750 of the Telerate Service (or on
any  successor  or  substitute  page of such  Service,  or any  successor  to or
substitute  for such  Service,  providing  rate  quotations  comparable to those
currently provided on such page of such Service, as determined by Bank from time
to time for purposes of providing  quotations  of interest  rates  applicable to
U.S.  dollar deposits in the London  interbank  market) at  approximately  11:00
a.m.,  London time, two Business Days prior to the commencement of such Interest
Period, as the rate for U.S. dollar deposits with a maturity  comparable to such
Interest  Period.  In the event that such rate is not available at such time for
any reason,  then the "LIBO Rate" with respect to such Eurodollar  Borrowing for
such  Interest  Period  shall be the  rate at  which  U.S.  dollar  deposits  of
$5,000,000,  and for a maturity  comparable to such Interest Period, are offered
by the principal London office of the Bank in immediately available funds in the
London interbank market at approximately  11:00 a.m.,  London time, two Business
Days prior to the commencement of such Interest Period.

         "Lien" shall mean any pledge, bailment, lease, mortgage, hypothecation,
conditional sales and title retention agreements,  charge, claim, encumbrance or
other lien in favor of any Person.

         "Loan"  shall mean a loan  advanced  by Bank to a  Borrower  under this
Agreement.

         "Management  Agreement"  shall  mean any  agreement  between a Borrower
and/or any of its Subsidiaries,  on the one hand, and any Other Licensee, on the
other,  pursuant  to which a Borrower  and/or any of its  Subsidiaries  operates
and/or manages Facilities for which any FCC Licenses or Other Authorizations are
held by such Other Licensee

         "Material  Adverse Effect" shall mean a material  adverse effect on (a)
the assets of the Borrowers; (b) the ability of a Borrower to pay or perform the
Obligations  in  accordance  with the  terms  of this  Agreement  and the  other
Operative  Documents and to avoid an Event of Default,  or an event which,  with
the giving of notice or the passage of time or both,  would  constitute an Event
of  Default,  under any  Operative  Document;  or (c) the rights,  remedies  and
security interests of Bank under this Agreement,  the other Operative  Documents
or any related document, instrument or agreement or on any item of Collateral.

         "Nextel  Agreement" shall mean the Agreement and Plan of Reorganization
dated as of August 21, 2000, as it maybe amended from time to time, by and among
Nextel Communications, Inc., Nextel Finance Company and Chadmoore.

         "Nextel Note" shall mean the  Subordinated  Secured  Promissory Note of
Chadmoore in favor of Unrestricted Subsidiary Funding Company dated as of August
25, 2000.

         "Note" or "Notes" shall mean the secured  promissory  note or notes, as
applicable, of a Borrower substantially in the form of Exhibit A.

         "Obligations"  shall  mean and  include  all  Loans,  advances,  debts,
liabilities and obligations, howsoever arising, owed by the Borrowers to Bank of
every kind and description

                                       -7-
<PAGE>

(whether or not evidenced by any note or  instrument  and whether or not for the
payment of money),  now existing or hereafter  arising  under or pursuant to the
terms of this  Agreement,  the  Notes,  the  Guaranty  and the  other  Operative
Documents,  including,  all interest,  fees, charges, premium payable under this
Agreement,  expenses, reasonable attorneys' fees and costs and accountants' fees
and costs  chargeable to and payable by the Borrowers  hereunder and thereunder,
in each case,  whether  direct or indirect,  absolute or  contingent,  due or to
become due, and whether or not arising  after the  commencement  of a proceeding
under Title 11 of the United  States Code (11 U. S. C. Section 101 et seq.),  as
amended from time to time (including  post-petition interest) and whether or not
allowed or allowable as a claim in any such proceeding.

         "Operative  Documents"  shall  mean  this  Agreement,  the  Notes,  the
Guaranty,  the Security  Agreement,  the  Subordination  Agreement and all other
documents,  instruments  and  agreements  executed and  delivered in  connection
herewith  or  therewith  or in  respect  of  the  closing  of  the  transactions
contemplated hereby or thereby.

         "Other  Authorization"  shall mean any  license,  permit,  certificate,
ordinance,  approval or other authorization  specifically  related to the use of
specialized  mobile radio  frequencies or the operation of a specialized  mobile
radio  business,  or any renewal or  extension  thereof,  from any  Governmental
Authority other than the FCC.

         "Other Licensee" shall mean any party,  other than the Borrowers or any
of their  Subsidiaries,  that holds an FCC License or Other  Authorization for a
Facility being operated or managed by the Borrower or any of its Subsidiaries in
connection with the management and operation of their business.

         "Permitted Indebtedness" shall mean and include:

         (a)  Indebtedness of the Borrowers to Bank;

         (b)  Indebtedness of Borrowers to Senior Lender in a principal amount
              not to exceed the principal amount outstanding on August 31, 2000;

         (c)  Indebtedness existing on the date hereof and set forth on the
              Disclosure Schedule;

         (d)  Indebtedness of a Borrower to any other Borrower;

         (e)  Indebtedness to the FCC related to 900 MHz channels; and

         (f)  Subordinated Indebtedness, so long as no Default or Event of
              Default exists prior to the incurrence thereof or would exist
              immediately after giving effect thereto.

         "Permitted Investments" shall mean and include:

         (a)  Investments in marketable obligations issued or fully guaranteed
              by the United States and maturing not more than one (1) year from
              the date of issuance;

                                      -8-
<PAGE>

         (b)  Investments in open market commercial paper rated at least "A1" or
              "P1" or higher by a national credit rating agency and maturing not
              more than one (1) year from the creation thereof;

         (c)  Other liquid Investments  maturing not more than one (1) year from
              the date of issuance  permitted under a written  investment policy
              of  Chadmoore  approved by its Board of  Directors  and by Bank in
              writing;

         (d)  Investments  pursuant to or arising under  currency  agreements or
              interest rate  agreements  entered into in the ordinary  course of
              business;

         (e)  Investments  existing on the date of this  Agreement and disclosed
              in the Disclosure Schedule;

         (f)  Investments by a Borrower in any other Borrower;

         (g)  Investments   consisting   of  loans  and  advances  to  employees
              aggregating  not  in  excess  of  Twenty-Five   Thousand   Dollars
              ($25,000) at any time;

         (h)  Investments  consisting of deposit accounts of a Borrower in which
              Bank has a perfected security interest; and

         (i)  Other  Investments  aggregating  not  in  excess  of  One  Hundred
              Thousand Dollars ($100,000) at any time.

         "Permitted Liens" shall mean:

         (a)  The Lien created as contemplated by this Agreement;

         (b)  The Lien to Senior Lender;

         (c)  Liens  for  fees,  taxes,   levies,   imposts,   duties  or  other
              governmental  charges of any kind which are not yet  delinquent or
              which are being contested in good faith by appropriate proceedings
              which suspend the collection thereof (provided, however, that such
              proceedings  do not  involve any  substantial  danger of the sale,
              forfeiture or loss of any item of  Collateral  and that a Borrower
              has  adequately  bonded  such  Lien  or  reserves   sufficient  to
              discharge  such  Lien  have  been  provided  on the  books of such
              Borrower);

         (d)  Liens identified on the Disclosure Schedule;

         (e)  Liens  and  deposits  under  workers'  compensation,  unemployment
              insurance and social security laws or to secure the performance of
              bids, tenders, contracts (other than for the repayment of borrowed
              money) or leases, or to secure statutory  obligations or to secure
              indemnity,  performance  or other  similar  bonds in the  ordinary
              course of business;

                                      -9-
<PAGE>

         (f)  Liens upon any equipment or other personal  property acquired by a
              Borrower after the date hereof to secure (i) the purchase price of
              such  equipment or other  personal  property or (ii) capital lease
              obligations  or  indebtedness   otherwise   permitted  under  this
              Agreement  and incurred  solely for the purpose of  financing  the
              acquisition of such equipment or other personal property; provided
              that (A) such Liens are confined  solely to the equipment or other
              personal property so acquired  (together with accessions  thereto,
              substitutions  therefore  and proceeds  thereof),  and (B) no such
              Lien shall be created,  incurred,  assumed or suffered to exist in
              favor of a Borrower's officers,  directors or shareholders holding
              five percent (5%) or more of a Borrower's Equity Securities;

         (g)  Easements,   reservations,  rights  of  way,  restrictions,  minor
              defects or  irregularities  in title and other similar  charges or
              encumbrances affecting real property in a manner not materially or
              adversely affecting the value or use of such property;

         (h)  Liens arising  solely by virtue of any  contractual,  statutory or
              common law provision relating to banker's liens, rights of set-off
              or similar rights as to deposit accounts and other fund maintained
              with a  depository  institution;  provided,  that (i) such deposit
              account is not a  dedicated  cash  collateral  account  and is not
              subject to restrictions  against access by a Borrower in excess of
              those set forth by regulations  promulgated by the Federal Reserve
              Board,  and (ii) such  deposit  account  is not  intended  by such
              Borrower to provide collateral to the depository institution;

         (i)  Carriers', warehousemen's,  mechanics', landlords', materialmen's,
              repairmen's or other similar Liens arising in the ordinary  course
              of business  which are not  delinquent or remain  payable  without
              penalty  or  which  are  being  contested  in  good  faith  and by
              appropriate proceedings;

         (j)  Lien  held  by  the  FCC to  secure  payment  of the  Indebtedness
              identified   in  clause  (e)  of  the   definition   of  Permitted
              Indebtedness; and

         (k)  Non-exclusive  licenses of Intellectual  Property  entered into in
              the ordinary course of business.

         "Person"  shall  mean and  include  an  individual,  a  partnership,  a
corporation,  a business  trust,  a joint  stock  company,  a limited  liability
company,  an  unincorporated  association  or other  entity and any  domestic or
foreign national, state or local government,  any political subdivision thereof,
and any department, agency, authority or bureau of any of the foregoing.

         "Preferred  Stock"  means,  with  respect  to any  Person,  any and all
shares,  interests,  participations or other equivalents (however designated) of
such Person's  preferred or preference  stock whether now  outstanding or issued
after the date hereof, and including, without limitation, all classes and series
of preferred or preference stock of such Person.

                                      -10-
<PAGE>

         "Prime  Rate" means the rate of interest per annum  publicly  announced
from  time to time by  Barclays  Bank PLC,  as its  prime  rate in effect at its
principal  office in New York  City;  each  change in the  Prime  Rate  shall be
effective from and including the date such change is publicly announced as being
effective.

         "Security  Agreement"  shall mean the  Security  Agreement  in the form
attached hereto as Exhibit D.

         "Senior Lender" means GATX Capital Corporation, a Delaware corporation.

         "Senior Loan Agreement" means the Senior Secured Loan Agreement,  dated
as of March 2, 1999, among the Senior Lender, Chadmoore and certain Subsidiaries
of Chadmoore, as amended.

         "Solvent"  shall mean,  with respect to any Person on any date, that on
such date (a) the fair value of the  property of such Person is greater than the
fair  value  of  the  liabilities  (including,  without  limitation,  contingent
liabilities)  of such Person,  (b) the present fair saleable value of the assets
of such  Person is not less than the  amount  that will be  required  to pay the
probable  liability  of such  Person on its debts as they  become  absolute  and
matured,  (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person's ability to pay as such debts and
liabilities  mature  and (d) such  Person  is not  engaged  in a  business  or a
transaction,  and is not about to engage in a  business  or a  transaction,  for
which such Person's property would constitute an unreasonably small capital.

         "State PUC" shall mean any state administrative agency that has primary
jurisdiction  for  the  regulation  of  specialized  mobile  radio  services  or
telecommunications services.

         "State PUC Rules" shall mean the rules, regulations and policies of any
State PUC.

         "Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and  denominator of which is the number one
minus the aggregate of the maximum reserve percentages  (including any marginal,
special,  emergency or supplemental reserves) expressed as a decimal established
by the  Federal  Reserve  Board to which the Bank is  subject  for  eurocurrency
funding (currently referred to as "Eurocurrency  Liabilities" in Regulation D of
the Federal Reserve Board). Such reserve percentages shall include those imposed
pursuant to such  Regulation D.  Eurodollar  Loans shall be deemed to constitute
eurocurrency  funding  and to be subject to such  reserve  requirements  without
benefit of or credit for proration,  exemptions or offsets that may be available
from time to time to Bank under such Regulation D or any comparable  regulation.
The  Statutory  Reserve  Rate shall be adjusted  automatically  on and as of the
effective date of any change in any reserve percentage.

         "Subordinated   Indebtedness"   shall   mean   unsecured   Indebtedness
subordinated to the  Obligations on terms and conditions,  including no payments
of principal while the Obligations  are  outstanding,  acceptable to Bank in its
sole and absolute discretion.

                                      -11-
<PAGE>

         "Subordination   Agreement"  shall  mean  that  certain   Subordination
Agreement,  dated as of August 31, 2000,  between GATX Capital  Corporation  and
Barclays Bank, PLC.

         "Subsidiary"  shall mean, with respect to any Person, a Person of which
a majority of the outstanding  voting stock or other Equity  Securities is owned
by such Person directly or indirectly through Subsidiaries.

         "Surety  Instruments"  shall  mean all  letters  of  credit  (including
standby and commercial),  banker's acceptances, bank guaranties, shipside bonds,
surety bonds and similar instruments.

         "Term"  shall mean the period from and after the date hereof  until the
payment or satisfaction in full of all Obligations  under this Agreement and the
other Operative Documents.

         "Transfer"  shall  have  the  meaning  given  to that  term in  Section
7.01(c).

1.02.  Headings.  Headings  in this  Agreement  and each of the other  Operative
Documents  are for  convenience  of  \reference  only  and  are not  part of the
substance hereof or thereof.

1.03.  Plural Terms.  All terms defined in this Agreement or any other Operative
Document in the singular  form shall have  comparable  meanings when used in the
plural form and vice versa.

1.04. Construction.  This Agreement is the result of negotiations among, and has
been  reviewed  by,  the  Borrowers  and  Bank  and  their  respective  counsel.
Accordingly,  this  Agreement  shall be deemed to be the  product of all parties
hereto, and no ambiguity shall be construed in favor of or against the Borrowers
or Bank.

1.05.  Entire  Agreement.  This Agreement,  together with the terms set forth in
each of the other Operative Documents,  taken together,  constitute and, contain
the  entire  agreement  of the  Borrowers  and Bank  and,  with  regard to their
respective subject matters, supersede any and all prior agreements, term sheets,
negotiations,  correspondence,   understandings  and  communications  among  the
parties,  whether  written or oral,  with  respect to their  respective  subject
matters.

1.06. Other Interpretive Provisions. References in this Agreement to "Articles,"
"Sections,"  "Exhibits,"  "Schedules"  and "Annexes" are to articles,  sections,
exhibits,  schedules and annexes herein and hereto unless  otherwise  indicated.
References in this  Agreement and each of the other  Operative  Documents to any
document,  instrument or agreement  shall  include (a) all exhibits,  schedules,
annexes  and  other  attachments  thereto,  (b) all  documents,  instruments  or
agreements  issued or executed in  replacement  thereof,  and (c) such document,
instrument or agreement,  or  replacement or  predecessor  thereto,  as amended,
modified and supplemented from time to time and in effect at any given time. The
words  "hereof,"  "herein" and "hereunder" and words of similar import when used
in this Agreement or any other Operative  Document shall refer to this Agreement
or such other Operative Document,  as the case may be, as a whole and

                                      -12-
<PAGE>

not to any  particular  provision  of this  Agreement  or such  other  Operative
Document,  as the case may be. The words  "include" and "including" and words of
similar import when used in this Agreement or any other Operative Document shall
not be construed to be limiting or exclusive. Unless otherwise indicated in this
Agreement or any other  Operative  Document,  all accounting  terms used in this
Agreement or any other Operative Document shall be construed, and all accounting
and  financial  computations  hereunder  or  thereunder  shall be  computed,  in
accordance with GAAP.

                                   ARTICLE II
                                   ----------

                                   THE CREDIT
                                   ----------

2.01. Credit Facility; Notes.

         (a)  Availability.  On the terms and subject to the conditions  hereof,
Bank agrees to make Loans to the Borrowers up to an aggregate  principal  amount
of Thirty-Two Million Five Hundred Thousand Dollars ($32,500,000).

         (b)  Type of  Loans.  Subject  to  Section  2.05,  each  Loan  shall be
comprised  entirely of Base Rate Loans or  Eurodollar  Loans as the Borrower may
request in accordance herewith.

         (c) Minimum Amounts.  At the commencement of each Interest Period for a
Eurodollar  Loan,  such  request  shall  be in an  aggregate  amount  that is an
integral  multiple of $100,000  and not less than  $1,000,000.  At the time that
each Base Rate Borrowing is made, such Borrowing shall be in an aggregate amount
that  is an  integral  multiple  of  $100,000  and  not  less  than  $1,000,000.
Borrowings of more than one Type may be outstanding  at the same time;  provided
that  there  shall  not at any  time  be  more  than a  total  of 10  Eurodollar
Borrowings outstanding.

         (d)  Maximum  Amount.   The  initial  Loan  Request  shall  not  exceed
$5,200,000 plus any fees, interests, or other expenses (i) then due hereunder or
which are reasonably expected to become due in the next 30 days thereafter,  and
(ii)  payable  under a letter  agreement  dated the date of this  Agreement.  No
subsequent  Loan Request shall request a Loan of more than the sum of $1,300,000
plus any fees or interest then due hereunder or which are reasonably expected to
become due within 30 days thereafter.

         (e) Frequency. Loans shall be made to the Borrowers not more often than
monthly, on or before the fifth Business Day of a calendar month.

         (f)  Identity  of  Borrower.  Bank  shall  advance  a Loan  only to the
Borrower that will utilize the proceeds of such Loan, provided that Loans may be
advanced by Bank to any Subsidiaries of Chadmoore only if the conditions of Part
III of Schedule 2 have been satisfied.

         (g) Notes.  The obligation of a Borrower to repay the aggregate  unpaid
principal  amount  of and  interest  on  each  Loan to such  Borrower  shall  be
evidenced by a Note.  Bank may,

                                      -13-
<PAGE>

and is hereby  authorized by each Borrower to, endorse on a grid annexed to such
Note appropriate  notations  regarding such Loan;  provided,  however,  that the
failure to make,  or an error in making,  any such  notation  shall not limit or
otherwise affect the obligations of a Borrower hereunder or under such Note.

         (h) Termination of Commitment to Lend.  Notwithstanding anything to the
contrary in the Operative  Documents,  Bank's obligation to lend the undisbursed
portion  hereunder  shall  be  suspended  upon the  occurrence  and  during  the
continuation  of an Event of  Default,  and shall  terminate  on the  Commitment
Termination Date.

         (i) Maturity. All unpaid principal and interest shall, in any event, be
paid not later than June 30, 2002.

2.02.    Requests for Borrowings; Funding.

         (a) To  request a Loan,  the  Borrower  shall  notify  the Bank of such
request by telephone (i) in the case of a Eurodollar  Loan, not later than 11:00
a.m.,  New York City time,  three  Business Days before the date of the proposed
Borrowing  or (ii) in the case of a Base Rate Loan,  not later than 11:00  a.m.,
New York City time, one Business Day before the date of the proposed Loan.  Each
such  telephonic  Loan  Request  shall be  irrevocable  and  shall be  confirmed
promptly by hand delivery or telecopy of the Bank of a written Loan Request in a
form approved by the Bank and signed by the Borrower.  Each such  telephonic and
written Loan Request shall specify the following information:

             (i)  the Borrower (which,  if the Borrower is other than Chadmoore,
                  must have complied with Part III of Schedule 2);

             (ii) the aggregate amount of the Loan being requested;

             (iii)whether  such Loan is to be a Base  Rate Loan or a  Eurodollar
                  Loan;

             (iv) the  location  and number of the  Borrowers'  account to which
                  funds are to be disbursed.

         The initial Loan made hereunder,  and any other Loan if no type of Loan
is specified in the Loan Request shall be a Base Rate Borrowing.

         (b)  Bank  shall  make  each  Loan to be made  by it  hereunder  on the
proposed  date thereof by wire  transfer of  immediately  available  funds to an
account of the  Borrower  designated  by the  Borrower  in the  applicable  Loan
Request.

2.03. Use of Proceeds. The proceeds of the Loans shall be used to pay principal,
interest  and fees on  Indebtedness  to  Senior  Lender,  to pay  principal  and
interest under the Nextel Note, to pay fees and interest on Loans made hereunder
for working capital and other general corporate purposes.

                                      -14-
<PAGE>

2.04.    Interest.

         (a) Base Rate Borrowings.  Each Base Rate Loan shall bear interest at a
rate per annum equal to the Adjusted Base Rate plus 3.5%.

         (b) Eurodollar Borrowings.  Each Eurodollar Loan shall bear interest at
a rate per annum  equal to the  Adjusted  LIBO Rate for the  Interest  Period in
effect for such Loan plus 4.5%.

         (c) Default  Interest.  Notwithstanding  the foregoing,  (i) during the
period when any Event of Default  shall have  occurred  and be  continuing,  the
principal of each Loan hereunder  shall bear  Interest,  after as well as before
judgment, at a rate per annum (herein, the "Post-Default Rate") equal to 2% plus
the rate,  otherwise  applicable to such Loan as provided  above and (ii) if any
interest  on any  Loan  or any  fee or  other  amount  payable  by the  Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or
otherwise,  such  overdue  amount shall bear  interest,  after as well as before
judgment,  at a rate per annum  equal to the  Post-Default  Rate for the Loan in
respect of which such interest is payable.

         (d) Payment of Interest. Accrued interest on each Loan shall be payable
in arrears  on each  Interest  Payment  Date for such  Loan;  provided  that (i)
interest accrued pursuant to paragraph (c) of this Section 2.04 shall be payable
on demand,  (ii) in the event of any repayment or  prepayment of any  Eurodollar
Loan (or the repayment or prepayment in full of the Loans),  accrued interest on
the  principal  amount  repaid or  prepaid  shall be payable on the date of such
repayment  or  prepayment,  and  (iii)  in the  event of any  conversion  of any
Eurodollar  Loan  prior  to the end of the  current  Interest  period  therefor,
accrued  interest  on such Loan shall be payable on the  effective  date of such
conversion.

         (e) Computation.  All interest hereunder shall be computed on the basis
of a year of 360  days,  except  that  interest  computed  by  reference  to the
Adjusted  Base Rate at times when the  Adjusted  Base Rate is based on the Prime
Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year),  and in each case shall be payable for the actual  number of days elapsed
(including the first day but excluding the last day).  The  applicable  Adjusted
Base Rate,  Adjusted LIBO Rate or LIBO Rate shall be determined by the Bank, and
such determination shall be conclusive absent manifest error.

2.05.  Alternate Rate of Interest.  If prior to the commencement of any Interest
Period for a Eurodollar Loan, the Bank determines (which  determination shall be
conclusive  absent  manifest  error) that adequate and  reasonable  means do not
exist for  ascertaining  the Adjusted LIBO Rate or the LIBO Rate, as applicable,
for such Interest  Period;  then the Bank shall give notice thereof to Chadmoore
by telephone or telecopy as promptly as  practicable  thereafter  and, until the
Bank notifies  Chadmoore  that the  circumstances  giving rise to such notice no
longer exist, (i) any Interest  Election Request that requests the conversion of
any Loan  to,  or  continuation  of any Loan  as,  a  Eurodollar  Loan  shall be
ineffective and (ii) if any Loan Request  requests a Eurodollar  Loan, such Loan
shall be made as a Base Rate Loan.

                                      -15-
<PAGE>

2.06.    Increased Costs.

         (a) Increased Costs Generally. If any Change in Law shall:

             (i) impose, modify or deem applicable any reserve,  special deposit
or similar  requirement  against assets of, deposits with or for the account of,
or credit  extended by, Bank (except any such reserve  requirement  reflected in
the Adjusted LIBO Rate); or

             (ii)  impose  on Bank or the  London  interbank  market  any  other
condition  affecting this Agreement or Eurodollar Loans made by such Bank or any
participation therein;

and the result of any of the  foregoing  shall be to  increase  the cost to such
Bank of  making  or  maintaining  any  Eurodollar  Loan (or of  maintaining  its
obligation to make any such Loan) or to reduce the amount of any sum received or
receivable by such Bank hereunder (whether of principal, interest or otherwise),
then the  Borrower  will pay to such Bank such  additional  amount or amounts as
will  compensate  such  Bank,  as the case may be,  for  such  additional  costs
incurred or reduction suffered.

         (b)  Capital  Requirements.  If any  Bank or  Issuing  Bank  reasonably
determines that any Change in Law regarding  capital  requirements  has or would
have the effect of reducing the rate of return on such Bank's  capital or on the
capital  of such  Bank's  holding  company,  if any,  as a  consequence  of this
Agreement or the Loans made by such Bank,  to a level below that which such Bank
or such Bank's  holding  company  could have achieved but for such Change in Law
(taking into  consideration such Bank's policies and the policies of such Bank's
holding  company with respect to capital  adequacy),  then from time to time the
Borrower  will pay to such  Bank,  such  additional  amount or  amounts  as will
compensate  such Bank, or such Bank's  holding  company,  for any such reduction
suffered.

         (c)  Certificates  from Banks.  A certificate of Bank setting forth the
amount or amounts  necessary to compensate such Bank or its holding company,  as
the case may be, as specified in paragraph (a) or (b) of this Section 2.06 shall
be  delivered  to  Chadmoore  and shall be  conclusive  so long as it reflects a
reasonable  basis for the  calculation of the amounts set forth therein and does
not contain any  manifest  error.  The  Borrower  shall pay such Bank the amount
shown as due on any such certificate within 10 days after receipt thereof.

         (d) Delay in  Requests.  Failure or delay on the part of Bank to demand
compensation pursuant to this Section 2.06 shall not constitute a waiver of such
Bank's right to demand such  compensation;  provided that the Borrower shall not
be required to compensate a Bank pursuant to this Section 2.06 for any increased
costs or  reductions  incurred  more than six months prior to the date that such
Bank, as the case may be, notifies the Borrower of the Change in Law giving rise
to such  increased  costs or  reductions  and of such Bank's  intention to claim
compensation  therefor;  provided further that, if the Change in Law giving rise
to such increased costs or reductions is retroactive,  then the six-month period
referred to above shall be extended to include the period of retroactive  effect
thereof.

                                      -16-
<PAGE>

2.07. Break Funding  Payments.  In the event of (a) the payment of any principal
of any  Eurodollar  Loan  other  than  one the last  day of an  Interest  Period
applicable  thereto  (including  as a result  of an Event of  Default),  (b) the
conversion  of any  Eurodollar  Loan other than on the last day of the  Interest
Period  applicable  thereof,  (c) the  failure to borrow,  convert,  continue or
prepay any Loan on the date specified in any notice  delivered  pursuant  hereto
(regardless  of whether such notice is permitted to be revocable  and is revoked
in accordance  herewith) or (d) the assignment of any Eurodollar Loan other than
on the last day of the  Interest  Period  applicable  thereto  as a result  of a
request by the Borrower  pursuant to Section 2.07,  then, in any such event, the
Borrower shall  compensate Bank for the loss,  cost and expense  attributable to
such event.

         In the case of a Eurodollar Loan, the loss to Bank  attributable to any
such event  shall be deemed to include an amount  determined  by such Bank to be
equal to the excess,  if any, of (i) the amount of interest that such Bank would
pay for a deposit equal to the principal amount of such Loan for the period from
the date of such payment,  conversion,  failure or assignment to the last day of
the then current  Interest period for such Loan (or, in the case of a failure to
borrow, convert or continue, the duration of the Interest Period that would have
resulted from such borrowing,  conversion or  continuation) if the interest rate
payable on such deposit were equal to the Adjusted  LIBO Rate for such  Interest
period,  over (ii) the  amount of  interest  that such Bank  would  earn on such
principal  amount  for such  period if such Bank were to invest  such  principal
amount for such period at the interest  rate that would be bide by such Bank (or
an  affiliate  of such Bank) for U.S.  dollar  deposits  from other banks in the
eurodollar  market at the  commencement  of such period.  A certificate  of Bank
setting  forth any  amount or  amounts  that such Bank is  entitled  to  receive
pursuant to this  Section  2.07 shall be  delivered to the Borrower and shall be
conclusive  absent manifest  error.  The Borrower shall pay such Bank the amount
shown as due on any such certificate within 10 days after receipt thereof.

2.08.    Prepayments.

         (a) Optional  Prepayments.  Borrower may make  prepayments of Loans, at
any time,  in whole or in part subject to the other  provisions  of this Section
2.08.

         (b) Mandatory Prepayments.  Subject to Borrower's obligations under the
Senior Loan Agreement, Borrower shall make prepayments of the Loans hereunder:

             (i) any time after the obligations  under the Senior Loan Agreement
have been paid in full or at any other time that Senior  Lender does not require
that such amounts be applied to obligations  under the Senior Loan Agreement and
the  Borrowers   have  aggregate   proceeds  from  sales,   exchanges  or  other
dispositions  of assets  outside  the  ordinary  course of business in excess of
$2,000,000  after  payment of any  expenses  incurred  in  connection  with such
dispositions, then, subject to the requirements of Section 2.08(c), the proceeds
shall be paid to Lender; and

                                      -17-
<PAGE>

             (ii) on the  date of any  sale,  issuance  or other  incurrence  of
Indebtedness  or sale of securities,  in an amount equal to the cash proceeds of
such  transaction  net  of  any  expenses   incurred  in  connection  with  such
transaction.

         (c) Amount to be Paid.  Any  prepayment  other than  prepayment in full
must be of a principal  amount of $2,000,000  or more, in integral  multiples of
$1,000,000  at a price  equal  to the  principal  amount  of each  Loan so to be
prepaid,  plus interest  accrued  thereon through and including the date of such
prepayment plus any amount due under Section 2.07.

         (d)  Notification  of Payments.  The Borrower  shall notify the Bank by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar  Borrowing,  not later than 11:00 a.m., New York City
time,  three  Business Days before the date of prepayment or (ii) in the case of
prepayment of a Base Rate  Borrowing,  not later than 11:00 a.m.,  New York City
time, on the date of prepayment. Each such notice shall be irrevocable and shall
specify  the  prepayment  date and the  principal  amount of each  Borrowing  or
portion  thereof to be prepaid.  Each  partial  payment of any  Borrowing  under
paragraph (a) of this Section 2.08 shall be in an amount that would be permitted
in the case of an advance of a Borrowing of the same Type as provided in Section
2.02.

2.09.    Other Payment Terms.

         (a) Place and Manner. The Borrowers shall make all payments due to Bank
in lawful money of the United States,  in immediately  available  funds,  at the
address for payments and in the manner specified in Section 10.05(b).

         (b) Date.  Whenever any payment due  hereunder  shall fall due on a day
other than a Business  Day,  such payment  shall be made on the next  succeeding
Business Day, and such extension of time shall be included in the computation of
interest or fees, as the case may be.

2.10.  Commitment Fee.  Chadmoore shall pay a fee (the "Commitment Fee") of 1.0%
per annum  payable  quarterly  in arrears on the average  unused  portion of the
amount available under Section 2.01.

                                  ARTICLE III
                                  -----------

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

3.01.  Representations  and  Warranties.  Except as set forth in the  Disclosure
Schedule,  each Borrower makes the following  representations  and warranties to
Bank as of the date hereof and again on each Funding Date:

         (a) Due  Incorporation,  Qualification,  etc. Each of such Borrower and
its  Subsidiaries  (i)  is a  corporation  or  limited  liability  company  duly
organized,  validly existing and in good standing under the laws of its state of
incorporation  or formation;  (ii) has the power and authority to own, lease and
operate its properties and carry on its business as now conducted;  and (iii) is

                                      -18-
<PAGE>

duly  qualified,  licensed  to do  business  and in good  standing  as a foreign
corporation or limited liability company in each jurisdiction  where the failure
to be so qualified or licensed  could  reasonably be expected to have a Material
Adverse Effect.

         (b) Authority. The execution, delivery and performance by such Borrower
of each Operative  Document to be executed by such Borrower and the consummation
of the  transactions  contemplated  thereby  (i) are  within  the  power of such
Borrower and (ii) have been duly authorized by all necessary actions on the part
of such Borrower.

         (c)  Enforceability.   Each  Operative  Document  executed,  or  to  be
executed,  by such Borrower has been, or will be, duly executed and delivered by
such Borrower and constitutes,  or will constitute,  a legal,  valid and binding
obligation  of such  Borrower,  enforceable  against such Borrower in accordance
with its terms,  except as limited by  bankruptcy,  insolvency  or other laws of
general  application  relating to or affecting  the  enforcement  of  creditors'
rights generally and general principles of equity.

         (d)  Non-Contravention.  The execution and delivery by such Borrower of
the  Operative  Documents  executed by such  Borrower  and the  performance  and
consummation of the  transactions  contemplated  thereby do not and will not (i)
violate the articles of  incorporation  or bylaws or certificate of formation or
limited liability  company agreement of such Borrower or any material  judgment,
order, writ, decree,  statute,  rule or regulation  applicable to such Borrower;
(ii) violate any provision of, or result in the breach or the  acceleration  of,
or entitle any other Person to accelerate (whether after the giving of notice or
lapse of time or both), any material mortgage, indenture,  agreement, instrument
or contract to which such Borrower is a party or by which it is bound;  or (iii)
result in the creation or  imposition  of any Lien upon any  property,  asset or
revenue  of such  Borrower  (other  than any Lien  arising  under the  Operative
Documents) or the suspension,  revocation, impairment, forfeiture, or nonrenewal
of any material permit,  license,  authorization or approval  applicable to such
Borrower, its business or operations, or any of its assets or properties.

         (e) Approvals.  No consent,  approval,  order or  authorization  of, or
registration,  declaration or filing with, any  Governmental  Authority or other
Person  (including,  without  limitation,  the  shareholders  of any  Person) is
required  in  connection  with  the  execution  and  delivery  of the  Operative
Documents  executed by such Borrower and the performance and consummation of the
transactions contemplated thereby.

         (f) No Violation or Default.  None of such Borrower or such  Borrower's
Subsidiaries  is in  violation of or in default with respect to (i) its articles
of  incorporation  or bylaws or  certificate  of formation or limited  liability
company agreement or any material judgment,  order, writ, decree,  statute, rule
or regulation applicable to such Person; (ii) any material mortgage,  indenture,
agreement, instrument or contract to which such Person is a party or by which it
is bound  (nor is there any  waiver in effect  which,  if not in  effect,  would
result in such a violation or default),  where,  in each case, such violation or
default,  individually,  or together with all such violations or defaults, could
reasonably be expected to have a Material  Adverse Effect.  Without limiting the
generality  of  the  foregoing,   none  of  such  Borrower  or  such  Borrower's
Subsidiaries

                                      -19-
<PAGE>

(A) has  violated  any  Environmental  Law,  (B) has  any  liability  under  any
Environmental  Law or (C) has  received  notice  or  other  communication  of an
investigation or is under  investigation  by any  Governmental  Authority having
authority  to enforce  Environmental  Law,  where such  violation,  liability or
investigation could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.

         (g) Nextel  Agreement.  The Nextel Agreement  remains in full force and
effect,  there has been no breach or  default  or event that (with the giving of
notice  or the  passage  of time or  both)  could  become a  breach  or  default
thereunder.  No party  thereto has given notice under Section 9.01 of the Nextel
Agreement.

                                   ARTICLE IV
                                   ----------

                             REPORTING REQUIREMENTS
                             ----------------------

4.01.    Furnishing Reports.  Chadmoore shall furnish to Bank:

         (a) Reports to Senior  Lender.  As and when delivered to Senior Lender,
true, correct and complete copies of financial statements,  reports,  notices or
other information  delivered to Senior Lender  (including,  without  limitation,
deliveries required under Article IV of the Senior Loan Agreement).

         (b) Notices  Under Nextel  Agreement.  As and when  delivered to Nextel
Finance  Company,  true,  correct and  complete  copies of any notice  delivered
pursuant to the Nextel  Agreement,  and,  promptly after management of Chadmoore
becomes  aware  thereof,  and in any event within ten (10) Business Days of such
awareness,  provide  Bank with notice of any breach or default  under the Nextel
Agreement.

         (c)  Miscellaneous.  Promptly upon request,  such other information and
reports as Bank may reasonably request from time to time.

                                   ARTICLE V
                                   ---------

                    SECURITY; GUARANTIES; CORPORATE STRUCTURE
                    -----------------------------------------

5.01.  Security  Agreement.  The  Obligations  shall be secured by the  Security
Agreement  which  shall  be  entered  into  by each of the  Borrowers  and  each
Guarantor,   provided,  however,  that  upon  the  closing  of  the  transaction
contemplated in the Nextel Agreement, Bank shall release the Collateral upon the
assumption as contemplated by Section 7.03(f) of the Nextel Agreement.

5.02.  Guaranty.  Each of the Borrowers and each new  Subsidiary  shall become a
party to the Guaranty and guaranty the Obligations of each of the Borrowers.

5.03.    Corporate Structure.

                                      -20-
<PAGE>

         (a) Formation of New Subsidiaries. Without the prior written consent of
Bank,  Chadmoore and its Subsidiaries  shall not form or suffer to exist any new
Subsidiaries.

         (b) Consolidation of Existing  Subsidiaries.  Subject to receipt of FCC
approval, Chadmoore shall use commercially reasonable efforts to (i) consolidate
all FCC  Licenses  (other than those with  respect to which the  Borrowers  have
existing  contractual  obligations  to  maintain  licenses  in  non-wholly-owned
Subsidiaries)  in one or more  non-operating  direct  Subsidiaries of Chadmoore,
(ii)  consolidate  its  operations  (except  with respect to the  operations  of
non-wholly-owned  Subsidiaries) in one or more direct Subsidiaries of Chadmoore,
and (iii)  eliminate  through  merger  or  liquidation  all  other  wholly-owned
Subsidiaries.

                                   ARTICLE VI
                                   ----------

                              AFFIRMATIVE COVENANTS
                              ---------------------

6.01.    Affirmative Covenants.

         (a) Existence; Good Standing; Maintenance. Each Borrower shall maintain
or cause to be maintained its and each of its Subsidiaries'  corporate existence
(except as permitted in Section  7.01(e)) and good standing in its  jurisdiction
of incorporation  and maintain  qualification in each  jurisdiction in which the
failure to so qualify would  reasonably  be expected to have a Material  Adverse
Effect.  Each Borrower shall maintain,  and shall cause each of its Subsidiaries
to  maintain,  in force all  licenses,  approvals  and  agreements  necessary to
construct its network  infrastructure  and otherwise  operate its business,  the
loss of which would reasonably be expected to have a Material Adverse Effect.

         (b) Government Compliance.

             (i)  Subject to the more  specific  requirements  of  clauses  (ii)
                  through (ix) below,  each  Borrower  shall  comply,  and shall
                  cause each  Subsidiary  to comply,  with all  statutes,  laws,
                  ordinances and  government  rules and  regulations,  including
                  Environmental Laws, to which it is subject, noncompliance with
                  which could  reasonably be expected to have a Material Adverse
                  Effect or a material  adverse  effect on the Collateral or the
                  priority of Bank's Lien on the Collateral. Each Borrower shall
                  meet,  and shall cause each  Subsidiary  to meet,  the minimum
                  funding  requirements  of ERISA with  respect to any  employee
                  benefit plans subject to ERISA.

             (ii) Each   Borrower  and  its   Subsidiaries   shall  operate  the
                  Facilities  in all material  respects in  accordance  with the
                  terms  and  conditions  of the  FCC  Licenses  and  the  Other
                  Authorizations,  if any,  that are  necessary  or advisable in
                  connection with the control,  management, and operation of the
                  business  of  the  Borrowers,   and  in  compliance  with  any
                  applicable   law,

                                      -21-
<PAGE>

                  including the requirements of the Communications  Act, the FCC
                  Rules, public utilities laws, and State PUC Rules.

             (iii)Each of the  Borrowers and its  Subsidiaries  shall obtain any
                  appropriate FCC Licenses and any Other Authorizations, if any,
                  necessary for it to acquire, own, lease,  control,  manage and
                  operate their business.

             (iv) Each of the Borrowers and its Subsidiaries shall comply in all
                  material  respects  with, and shall ensure that all Facilities
                  comply in all material respects with the  Communications  Act,
                  the FCC Rules, any applicable public utilities laws, State PUC
                  Rules, and the FCC Licenses and Other Authorizations,  if any,
                  that  are  necessary  or  advisable  in  connection  with  the
                  control,  management,  and  operation  of the business of such
                  Borrowers and its Subsidiaries.

             (v)  Each of Borrowers and its Subsidiaries shall duly, timely, and
                  accurately file all material reports and documents required by
                  the Communications  Act, required by the FCC Rules,  requested
                  by the FCC,  required by any applicable public utilities laws,
                  required  by any State PUC Rules,  or  requested  by any State
                  PUC.

             (vi) Each of the  Borrowers  and its  Subsidiaries  shall  take all
                  actions and  perform all  obligations  that are  necessary  or
                  advisable  to comply in all material  respects  with the terms
                  and  conditions  of all FCC  Licenses  that are  necessary  or
                  advisable  in  connection  with the control,  management,  and
                  operation   of  the   business  of  such   Borrower   and  its
                  Subsidiaries,  and to maintain such FCC Licenses in full force
                  and effect and without  adverse  modification  or  impairment.
                  Each of the  Borrowers  and its  Subsidiaries  shall  take all
                  actions and  perform all  obligations  that are  necessary  to
                  comply in all material  respects with the terms and conditions
                  of  all  Other  Authorizations  and  to  maintain  such  Other
                  Authorizations  in full force and effect and  without  adverse
                  modification or impairment.

             (vii)Each of the  Borrowers  and its  Subsidiaries  shall  take all
                  actions and  perform all  obligations  that are  necessary  or
                  advisable to  effectuate  the renewal of all FCC Licenses that
                  are  necessary or advisable  in  connection  with the control,
                  management, and operation of the business of such Borrower and
                  its  Subsidiaries  and of all  Other  Authorizations  that are
                  necessary  or  advisable  in  connection   with  the  control,
                  management, and operation of the business of such Borrower and
                  its Subsidiaries.

             (viii) Each of the  Borrowers and its  Subsidiaries  shall take all
                  actions  necessary  or advisable  to preserve  their  material
                  rights  under  the   Management   Agreements   and  shall  use
                  reasonable  efforts to cause each Other  Licensee:  to perform
                  all of its respective obligations  thereunder;  to maintain in
                  full

                                      -22-
<PAGE>

                  force  and  effect  and  without   adverse   modification   or
                  impairment  any FCC Licenses or Other  Authorizations  held by
                  such Other Licensee  applicable to any Facility being operated
                  or managed by such Borrower or its Subsidiaries; and to comply
                  with the  terms and  conditions  of any such FCC  Licenses  or
                  Other  Authorizations,  the Communications Act, the FCC Rules,
                  and any applicable public utilities laws, and State PUC Rules.

             (ix) Each of the Borrower and its  Subsidiaries  shall  operate and
                  manage the  Facilities in such a manner as to ensure that they
                  will not cause or result in exposure of workers or the general
                  public to levels of radio frequency radiation in excess of the
                  applicable  limits  stated  in the  FCC  Rules,  or any  other
                  applicable law.

         (c) Payment of Taxes,  etc. Each Borrower shall pay and discharge,  and
cause  each  Subsidiary  to  pay  and  discharge,  all  taxes,  assessments  and
governmental charges or levies imposed upon it or upon its income or profits, or
upon any properties belonging to it, prior to the date on which penalties attach
thereto, and all lawful claims which, if unpaid, might become a Lien upon any of
its properties; provided that there shall be no requirement to pay any such tax,
assessment, charge, levy or claim (i) which is being contested in good faith and
by appropriate  proceedings  or which  presents no risk of seizure,  forfeiture,
levy or other event  which could  jeopardize  any  Collateral  or (ii) for which
payment in full is bonded or reserved in  Chadmoore's  Financial  Statements  in
accordance  with GAAP.  Each Borrower  shall pay and  discharge,  and cause each
Subsidiary to pay and discharge,  each of its contractual obligations with third
parties  except to the extent that the failure to do so could not  reasonably be
expected to have a Material Adverse Effect.

         (d) Inspection Rights.  Each Borrower shall, at any reasonable time and
from time to time,  and so long as no Default or Event of Default  has  occurred
and is continuing,  upon reasonable notice from Bank and at Bank's sole expense,
permit, and shall cause each Subsidiary to permit,  Bank or any of its agents or
representatives  to inspect  the  Collateral,  to examine and make copies of and
abstracts from the records and books of account of, and visit the properties of,
such Borrower and to discuss the affairs, finances and accounts of such Borrower
with any of its officers or directors  relating in each case to Bank's  capacity
as lender and secured party hereunder and with respect to the Collateral.

         (e) Maintenance of Equipment and Other Assets. Each Borrower shall keep
and maintain, and shall cause each Subsidiary to keep and maintain, all items of
equipment and other  tangible  personal  property in good  operating  condition,
reasonable wear and tear excepted, shall make all necessary replacements thereof
and renewals thereto so that the value and operating efficiency thereof shall at
all times be maintained and  preserved.  Each Borrower shall not permit any such
material item of property to be operated or maintained in material  violation of
any  applicable  law,  statute,  rule or  regulation  or provisions of insurance
policies.  With respect to items of leased equipment,  Each Borrower shall keep,
maintain,  repair,  replace and operate such leased equipment in accordance with
the terms of the applicable lease.

                                      -23-
<PAGE>

         (f)  Nextel  Agreement.  Chadmoore  shall use  commercially  reasonable
efforts to perform its obligations under the Nextel Agreement.

         (g) New Subsidiaries; Additional Borrowers.

             (i) The Borrower(s) will cause (i) any Subsidiary that makes a Loan
Request hereunder,  prior to making such request,  to execute and deliver to the
Bank a Borrower Joinder in the form of Exhibit B attached hereto,  to cause such
Subsidiary  to become a Borrower  under this  Agreement,  (ii) if any  Chadmoore
Subsidiary becomes a Borrower hereunder,  Chadmoore will join and become a party
to  the  Guaranty  by a  form  of  joinder  in  form  and  substance  reasonably
satisfactory to Bank, and (iii) each of their  Subsidiaries  hereafter formed or
acquired prior to the payment in full of all obligations hereunder,  to become a
Guarantor  under the Guaranty and a Grantor  under the Security  Agreement.  The
Borrowers and such  Subsidiary  shall fully  cooperate with Bank and perform all
additional  acts  requested  by Bank to  effect  the  purposes  of this  Section
6.01(g)(i),  including without limitation, execution and delivery of agreements,
instruments,  UCC-1 financing statements,  documents,  certificates and opinions
all in form and substance satisfactory to Bank.

             (ii) The Borrowers will cause each of their Subsidiaries  hereafter
formed or acquired on or after the Commitment  Termination  Date, to execute and
deliver  to the Bank a  Subsidiary  Joinder in the form of  Attachment  1 to the
Guaranty,  to cause such Subsidiary to become a Guarantor under the Guaranty and
a Grantor under the Security Agreement.  The Borrowers and such Subsidiary shall
fully  cooperate with Bank and perform all additional  acts requested by Bank to
effect the purposes of this Section  6.01(g)(ii),  including without limitation,
execution and delivery of agreements,  instruments,  UCC-1 financing statements,
documents,  certificates and opinions all in form and substance  satisfactory to
Bank.

                                   ARTICLE VII
                                   -----------

                        NEGATIVE AND FINANCIAL COVENANTS
                        --------------------------------

7.01. Negative Covenants. So long as the Obligations remain outstanding:
         (a) Name;  Location  of Chief  Executive  Office.  No  Borrower  shall,
without  thirty (30) days prior written notice to Bank,  change its name,  chief
executive office or principal place of business.

         (b) Liens. No Borrower shall,  nor shall it permit its Subsidiaries to,
create,  incur,  assume  or suffer to exist any Lien of any kind upon any of its
properties or assets, whether tangible or intangible,  whether real, personal or
mixed, whether now owned or hereafter acquired, except Permitted Liens.

         (c) Dispositions of Assets.  No Borrower shall, nor shall it permit its
Subsidiaries  to, convey,  sell,  offer to sell,  lease,  transfer,  exchange or
otherwise dispose of (collectively,  a "Transfer") all or any part of its assets
to any Person,  other than:  (i)  Transfers  of  worn-out,  obsolete or unneeded
equipment;  (ii) Transfers from any Borrower to Chadmoore or a Borrower

                                      -24-
<PAGE>

which is a wholly-owned  Subsidiary of Chadmoore;  (iii) Transfers in compliance
with Section 5.03, (iv) Transfers of Licenses listed on the Disclosure  Schedule
to  non-wholly-owned  Subsidiaries  solely  pursuant  to the  terms of  existing
agreements with the holders of minority  interests in such  Subsidiaries,  which
agreements  are  listed  on the  Disclosure  Schedule,  (v) other  Transfers  of
property for fair  consideration in an amount not exceeding ten percent (10%) of
Adjusted  Consolidated  Tangible Net Worth in any fiscal year, (vi) Transfers of
Excluded  Assets (as defined in the Nextel  Agreement) and (vii) pursuant to the
Nextel Agreement.

         (d)  Distributions.   No  Borrower  shall,  nor  shall  it  permit  its
Subsidiaries  to, (i) pay any dividends or make any  distributions on its Equity
Securities;  (ii) purchase,  redeem,  retire,  defease or otherwise  acquire for
value any of its Equity  Securities  (other than  repurchases by cancellation of
indebtedness  pursuant to the terms of employee stock purchase  plans,  employee
restricted stock  agreements or similar  arrangements in an aggregate amount not
to exceed  $100,000);  (iii)  return  any  capital  to any  holder of its Equity
Securities as such;  (iv) make any  distribution of assets,  Equity  Securities,
obligations or securities to any holder of its Equity Securities as such; or (v)
set apart any sum for any such purpose;  provided,  however,  that (A) Chadmoore
may pay  dividends  payable  solely in its common stock,  (B) any  Subsidiary of
Chadmoore  may  pay  dividends  and  make   distributions   to  Chadmoore  or  a
wholly-owned  Subsidiary  of  Chadmoore,  (C)  Chadmoore may redeem its Series C
Preferred Stock in accordance with the terms of such Series C Preferred Stock as
set forth in its  Certificate of Designation of Rights and Preferences of Series
C  Preferred  Stock in  effect as of the date  hereof,  (D) each  Subsidiary  of
Chadmoore which is a limited  liability  company may make  distributions  in any
fiscal  year to its  members in an amount not to exceed  such  Subsidiary's  net
income for such fiscal and the tax  liabilities  of its members  arising  during
such fiscal year solely from their ownership  interests in such Subsidiary,  and
(E)  Chadmoore  may  make   distributions   to  effectuate  the   reorganization
contemplated by the Nextel Agreement.

         (e) Mergers or  Acquisitions.  Except to effectuate the  reorganization
contemplated by the Nextel Agreement, no Borrower shall, nor shall it permit its
Subsidiaries  to, merge or consolidate  with or into any other Person or acquire
all or  substantially  all of the  capital  stock or assets of  another  Person;
provided,  that any Borrower may merge with and into  Chadmoore and any Borrower
may merge  with and into any  Borrower  which is a  wholly-owned  Subsidiary  of
Chadmoore  so  long as no  Default  or  Event  of  Default  shall  exist  either
immediately prior to or after giving effect thereto.

         (f)  Transactions  With  Affiliates.  No Borrower  shall,  nor shall it
permit its  Subsidiaries  to,  enter into any  contractual  obligation  with any
Affiliate  or engage in any other  transaction  with any  Affiliate  except upon
terms at least as  favorable  to Borrower  as an  arms-length  transaction  with
unaffiliated Persons.

         (g) Indebtedness  Payments.  No Borrower shall, nor shall it permit its
Subsidiaries to, (i) prepay, redeem,  purchase,  defease or otherwise satisfy in
any  manner  prior to the  scheduled  repayment  thereof  any  Indebtedness  for
borrowed  money (other than amounts due under this Loan  Agreement or the Notes,
or the Senior Loan  Agreement  and  related  notes) or lease  obligations,  (ii)
amend,  modify or otherwise  change the terms of any  Indebtedness  for borrowed

                                      -25-
<PAGE>

money (other than the Obligations) or lease  obligations so as to accelerate the
scheduled  repayment thereof or (iii) repay any notes to officers,  directors or
shareholders.

         (h)   Indebtedness.   No  Borrower  shall,  nor  shall  it  permit  its
Subsidiaries  to,  create,  incur,  assume or  permit to exist any  Indebtedness
except Permitted Indebtedness.

         (i)   Investments.   No  Borrower  shall,   nor  shall  it  permit  its
Subsidiaries to, make any Investment except for Permitted Investments.

         (j)  Security  Interest  in  FCC  Licenses.  The  Borrowers  and  their
Subsidiaries  shall not contest the  validity of the security  interest  granted
with respect to FCC Licenses  pursuant to the terms of the  Operative  Documents
and in compliance with FCC regulations.

7.02.    Financial Covenants.  Chadmoore shall maintain:

         (a) Consolidated Total Indebtedness to Adjusted  Consolidated  Tangible
Net Worth Ratio.  As of the last day of each  calendar  quarter,  a ratio of (i)
Consolidated Total Indebtedness minus Subordinated Indebtedness to (ii) Adjusted
Consolidated Tangible Net Worth plus Subordinated  Indebtedness of not more than
2.2:1.00 for each calendar quarter ending in 1999 and not more than 1.7 for each
calendar quarter ending thereafter;

         (b) Current Ratio. As of the last day of each calendar quarter, a ratio
of Current  Assets to Current  Liabilities  of not less than  0.7:1.00  for each
calendar quarter ending in 1999 and 2000 and not less than 1.3 for each calendar
quarter ending thereafter;

         (c) Consolidated  Operating Cash Flow to Consolidated  Interest Expense
and Principal  Repayment  Ratio.  As of the last day of each  calendar  quarter,
commencing  with  the  calendar  quarter  ending  March  31,  2000,  a ratio  of
Consolidated  Operating Cash Flow to Consolidated Interest Expense and Principal
Repayment of not less than  0.7:1.00 for each calendar  quarter  ending in 2000,
not less than  1.8:1:00 for each  calendar  quarter  ending in 2001 and not less
than 3.0 for each calendar quarter ending thereafter;

         (d) Adjusted  Tangible Net Worth. At all times,  Adjusted  Consolidated
Tangible Net Worth plus Subordinated Indebtedness of not less than $18,000,000.

                                  ARTICLE VIII
                                  ------------

                              CONDITIONS PRECEDENT
                              --------------------

8.01.  Closing.  At the time of execution  and delivery of this  Agreement,  the
Borrowers shall have duly executed and/or  delivered to Bank the items set forth
in Part I of Schedule 2.

8.02.  Other  Conditions.  The  obligation  of Bank to make each  Loan  shall be
subject to the execution  and/or delivery to Bank of each of the items set forth
in Part I of Schedule 2 and the satisfaction by the applicable  Borrower of each
condition  set forth in Part II of  Schedule 2 and, if  applicable,  Part III of
Schedule 2..

                                      -26-
<PAGE>

8.03.  Covenant  to  Deliver.  Borrower  agrees  (not  as a  condition  but as a
covenant)  to deliver to Bank each item  required to be  delivered  to Bank as a
condition to a Loan, if the Loan is advanced. Borrower expressly agrees that the
extension  of a Loan  prior to the  receipt  by Bank of any such item  shall not
constitute a waiver by Bank of Borrower's obligation to deliver such item.

                                   ARTICLE IX
                                   ----------

                              DEFAULT AND REMEDIES
                              --------------------

9.01. Events of Default.  An "Event of Default" shall mean the occurrence of one
or more of the following described events:

         (a) Any  Borrower  shall (i) default in the payment of  principal of or
interest on the Loan when the same is due, or (ii) default in the payment of any
expense or other amount payable  hereunder or thereunder for five (5) days after
receipt of written notice from Bank that the same is due; or

         (b) Any Borrower  shall breach any provision of Section  5.03,  Section
6.01(f),  Section 6.01(g),  Section 7.01 and Section 7.02, except that if Senior
Lender shall have waived or otherwise  agreed to forbear  exercising  its rights
under the  comparable  provisions  of the  Senior  Loan  Agreement,  whether  in
writing,  orally,  or through failure to act, then as to such breach there shall
not be an Event of Default hereunder; or

         (c) Any Borrower  shall  default in the  performance  of any  covenant,
agreement or obligation (other than a covenant, agreement or obligation referred
to in, Section 9.01(a) or Section 9.01(b))  contained in any Operative  Document
and such  Borrower  shall fail to cure such  default for a period of twenty (20)
days after  Borrower knew or should have known of such  default,  except that if
Senior Lender shall have waived or otherwise  agreed to forbear  exercising  its
rights under the comparable provisions of the Senior Loan Agreement,  whether in
writing,  orally, or through failure to act, then as to such default there shall
not be an Event of Default hereunder; or

         (d) Any Borrower shall have breached any material term of any agreement
with Senior Lender,  except that if Senior Lender shall have waived or otherwise
agreed to forbear  exercising  its rights  related  to such  breach,  whether in
writing,  orally,  or through failure to act, then as to such breach there shall
not be an Event of Default hereunder; or

         (e) Any  representation or warranty made herein or on a Funding Date by
any Borrower in any Operative Document, or any certificate furnished pursuant to
the  provisions  of any  Operative  Document,  shall prove to have been false or
misleading in any material respect as of the time made or furnished; or

         (f) Any  Operative  Document or any material  term thereof shall in any
material respect cease to be, or any Borrower or any Guarantor shall assert that
any Operative  Document

                                      -27-
<PAGE>

or any material  term thereof is not, a legal,  valid and binding  obligation of
such Borrower or such Guarantor,  as applicable,  enforceable in accordance with
its terms; or

         (g) A  proceeding  shall have been  instituted  in a court of competent
jurisdiction seeking a decree or order for relief in respect of a Borrower in an
involuntary  case under any applicable  bankruptcy,  insolvency or other similar
law  now  or  hereafter  in  effect,  or  for  the  appointment  of a  receiver,
liquidator,  assignee, custodian, trustee (or similar official) of a Borrower or
for any substantial  part of its property,  or for the winding-up or liquidation
of its affairs,  and such proceeding shall remain undismissed or unstayed and in
effect for a period of sixty (60)  consecutive  days or such court shall enter a
decree or order granting the relief sought in such proceeding; or

         (h) Any Borrower  shall  commence a voluntary case under any applicable
bankruptcy,  insolvency or other  similar law now or hereafter in effect,  shall
consent  to the entry of an order for  relief in an  involuntary  case under any
such law,  or shall  consent to the  appointment  of or taking  possession  by a
receiver,  liquidator,  assignee, trustee, custodian (or other similar official)
of a  Borrower  or for any  substantial  part of its  property,  or shall make a
general assignment for the benefit of creditors,  or shall fail generally to pay
its debts as they become due, or shall take any corporate  action in furtherance
of any of the foregoing.

9.02.    Consequences of Event of Default.

         (a) If an Event of Default  specified  under and of clauses (a) through
(f) of Section  9.01 shall  occur and be  continuing,  Bank may (i)  declare the
Loans,  together  with  interest  thereon,  and  all  other  liabilities  of the
Borrowers  hereunder  and  under  the other  Operative  Documents  to be due and
payable  180 days  after  the Event of  Default,  without  presentment,  demand,
protest or further notice of any kind, all of which are hereby expressly waived,
and (ii) terminate its commitment to make the Loans and terminate any commitment
to  advance  money or  extend  credit  to or for the  benefit  of the  Borrowers
pursuant to any other agreement or commitment extended by Bank to Borrowers.

         (b) If an Event of Default specified under clause (g) or (h) of Section
9.01 shall occur,  then  immediately and without notice (i) the Loans,  together
with interest thereon,  and all other liabilities of the Borrowers hereunder and
under the other Operative Documents shall automatically  become due and payable,
without  presentment,  demand,  protest or notice of any kind,  all of which are
hereby expressly waived,  and (ii) Bank's commitment  hereunder to make the Loan
and any other  commitment  of Bank to the  Borrowers to advance  money or extend
credit pursuant to any other agreement or commitment shall be terminated.

9.03.  Rights Regarding  Collateral.  The Borrowers agree that when any Event of
Default  has  occurred  and is  continuing,  in addition to the rights set forth
above,  Bank shall have the rights,  options,  duties and  remedies of a secured
party as permitted by law and as set forth in the Security  Agreement,  subject,
however, to all FCC Rules.

                                      -28-
<PAGE>

9.04.  Reinstatement of Rights. This Agreement and the other Operative Documents
shall remain in full force and effect and  continue to be  effective  should any
petition  be filed by or  against  a  Borrower  or any of its  Subsidiaries  for
liquidation or  reorganization,  should a Borrower  become  insolvent or make an
assignment  for the  benefit of  creditors  or should a  receiver  or trustee be
appointed for all or any significant  part of a Borrower's  property and assets,
and shall continue to be effective or be  reinstated,  as the case may be, if at
any time payment and  performance of the  Obligations,  or any part thereof,  is
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee of the  Obligations,  whether as a "voidable
preference,"  "fraudulent  conveyance," or otherwise, all as though such payment
or  performance  had not been made.  In the event that any payment,  or any part
thereof, is rescinded,  reduced,  restored or returned, the Obligations shall be
reinstated  and deemed  reduced  only by such amount paid and not so  rescinded,
reduced, restored or returned. If Bank shall have proceeded to enforce any right
under this Agreement or any other Operative Document by foreclosure, sale, entry
or otherwise, and such proceedings shall have been discontinued or abandoned for
any reason or shall have been determined adversely,  then and in every such case
(unless otherwise ordered by a court of competent  jurisdiction),  Bank shall be
restored  to its  former  position  and  rights  hereunder  with  respect to the
property subject to the security interest created under this Agreement.

                                   ARTICLE X
                                   ---------

                                  MISCELLANEOUS
                                  -------------

10.01.  Modifications,  Amendments or Waivers.  The  provisions of any Operative
Document may be modified,  amended or waived only by a written instrument signed
by the parties thereto.

10.02. No Implied Waivers;  Cumulative Remedies;  Writing Required.  No delay or
failure of Bank in exercising any right,  power or remedy hereunder shall affect
or operate as a waiver thereof; nor shall any single or partial exercise thereof
or any abandonment or discontinuance of steps to enforce such a right,  power or
remedy  preclude any further  exercise  thereof or of any other right,  power or
remedy.  The  rights  and  remedies  hereunder  of Bank are  cumulative  and not
exclusive of any rights or remedies which it would  otherwise  have. Any waiver,
permit,  consent or approval of any kind or character on the part of Bank of any
breach or default  under this  Agreement or any such waiver of any  provision or
condition of this  Agreement  must be in writing and shall be effective  only in
the specified instance and to the extent specifically set forth in such writing.

10.03.  Expenses;  Indemnification.  The  Borrowers  shall pay on demand (i) all
reasonable fees and expenses, including reasonable attorneys' fees and expenses,
incurred by Bank in connection with the preparation,  execution and delivery of,
and the exercise of its duties under,  this  Agreement  and the other  Operative
Documents,   (ii)  all  reasonable  fees  and  expenses,   including  reasonable
attorneys'  fees  and  expenses,   incurred  by  Bank  in  connection  with  the
preparation,  execution  and delivery of  amendments  and waivers  hereunder and
(iii) all reasonable fees and expenses, including reasonable attorneys' fees and
expenses,  incurred by

                                      -29-
<PAGE>

Bank in  connection  with  the  enforcement  or  attempted  enforcement  of this
Agreement or any of the  Obligations  or in preserving  any of Bank's rights and
remedies (including,  without limitation, all such fees and expenses incurred in
connection with any "workout" or restructuring affecting the Operative Documents
or the  Obligations  or any  bankruptcy  or  similar  proceeding  involving  any
Borrower or any of its Affiliates). The Borrowers shall indemnify, reimburse and
hold Bank,  each of Bank's  members,  and each of their  respective  successors,
assigns,  agents,  officers,  directors,  shareholders,   servants,  agents  and
employees harmless from and against all liabilities,  losses, damages,  actions,
suits,  demands,  claims of any kind and nature  (including  claims  relating to
environmental  discharge,   cleanup  or  compliance),  all  costs  and  expenses
whatsoever  to the extent they may be  incurred or suffered by such  indemnified
party  in  connection  therewith  (including   reasonable  attorneys'  fees  and
expenses),  fines,  penalties  (and  other  charges of  applicable  governmental
authorities),  licensing fees relating to any item of  Collateral,  damage to or
loss of use of property  (including  consequential  or special  damages to third
parties or damages to a Borrower's  property),  or bodily  injury to or death of
any person  (including  any agent or employee of a Borrower)  (each, a "Claim"),
directly or indirectly  relating to or arising out of the use of the proceeds of
the Loan,  the  falsity of any  representation  or  warranty  of a Borrower or a
Borrower's  failure  to  comply  with the terms of this  Agreement  or any other
Operative Document during the Term. The foregoing indemnity shall cover, without
limitation, (i) any Claim in connection with a design or other defect (latent or
patent) in any item of equipment included in the Collateral,  (ii) any Claim for
infringement of any patent, copyright,  trademark or other intellectual property
right,  (iii) any Claim  resulting  from the presence on or under or the escape,
seepage,  leakage,  spillage,  discharge,  emission or release of any  Hazardous
Materials  on the  premises  of a  Borrower,  including  any Claims  asserted or
arising under any Environmental  Law, or (iv) any Claim for negligence or strict
or absolute liability in tort; provided,  however,  that the Borrowers shall not
indemnify  Bank for any  liability  incurred by Bank as a result of Bank's gross
negligence or willful misconduct.  Such indemnities shall continue in full force
and effect,  notwithstanding  the expiration or  termination of this  Agreement.
Upon Bank's written demand,  the Borrowers shall assume and diligently  conduct,
at its sole cost and expense,  the entire defense of Bank,  each of its members,
and  each  of  their  respective,   agents,  employees,   directors,   officers,
shareholders,  successors and assigns,  using counsel  reasonably  acceptable to
such indemnitee against any indemnified Claim. The Borrowers shall not settle or
compromise  any Claim against or involving Bank without first  obtaining  Bank's
written consent thereto,  which consent shall not be unreasonably  withheld.  If
Bank elects to assume its own defense in connection  with an indemnified  Claim,
then Bank shall not settle or  compromise  such Claim  without  first  obtaining
Borrower's  written  consent  thereto,  which consent shall not be  unreasonably
withheld,  provided  that if Borrower  does not consent  thereto,  then Borrower
shall post security or a bond in the amount of such Claim for the benefit of the
Bank.

10.04.  Waivers.  (a) Borrower shall give Bank written notice within one hundred
eighty (180) days of obtaining knowledge of the occurrence of any claim or cause
of action it  believes  it has,  or may seek to  assert to allege  against  Bank
whether such claim is based in law or equity,  arising  under or related to this
Agreement  or  any of  the  other  Operative  Documents  or to the  transactions
contemplated  hereby  or  thereby,  or any act or  omission  to act by Bank with
respect hereto or thereto, and that if it shall fail to give such notice to Bank
with  regard to any such claim

                                      -30-
<PAGE>

or cause of  action,  Borrower  shall be  deemed  to have  waived,  and shall be
forever  barred from bringing or asserting  such claim or cause of action in any
suit,  action or  proceeding in any court or before any  governmental  agency or
authority or any arbitrator.

(b)  NO  CLAIM  MAY BE  MADE  BY  ANY  BORROWER  AGAINST  BANK  OR THE  MEMBERS,
AFFILIATES,  DIRECTORS,  OFFICERS, EMPLOYEES, ATTORNEYS OF BANK FOR ANY SPECIAL,
INDIRECT,  CONSEQUENTIAL  OR PUNITIVE  DAMAGES IN RESPECT OF ANY CLAIM  (WHETHER
BASED UPON ANY BREACH OF CONTRACT,  TORT,  BREACH OF STATUTORY DUTY OR ANY OTHER
THEORY OF LIABILITY) ARISING OUT OF OR RELATED TO THE TRANSACTIONS  CONTEMPLATED
BY THIS  AGREEMENT,  OR ANY ACT,  OMISSION  OR  EVENT  OCCURRING  IN  CONNECTION
THEREWITH AND EACH BORROWER  HEREBY WAIVES,  RELEASES AND AGREES NOT TO SUE UPON
ANY CLAIM FOR ANY SUCH  DAMAGES,  WHETHER OR NOT NOW  ACCRUED AND WHETHER OR NOT
KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

10.05. Notices;  Payments.  (a) All notices and other communications given to or
made upon any party hereto in connection with this Agreement shall be in writing
(including  telexed,  telecopied or  telegraphic  communication)  and mailed (by
certified or registered mail), telexed, telegraphed,  telecopied or delivered to
the respective parties, as follows:

              Borrowers:       At the address set forth on the cover page of
                               this Agreement.

              with a
              copy to:         Gray Cary Ware & Freidenrich LLP
                               400 Capitol Mall
                               Suite 2400
                               Sacramento, California  95814
                               Attention:  Gilles S. Attia, Esq.

              Bank:            BARCLAYS BANK PLC
                               222 Broadway
                               New York, New York  10038
                               Telephone No.:  212-412-3355
                               Telecopier No.:  212-412-5306 or 07 or 08
                               Attention: Central Loan Administration/Manager,
                                         Agent Section

or in accordance with any subsequent  written direction from either party to the
other.  All such  notices and other  communications  shall,  except as otherwise
expressly  herein  provided,  be  effective  when  received;  or in the  case of
delivery  by  messenger  or  overnight  delivery  service,   when  left  at  the
appropriate address.

         (b) Unless Bank specifies  otherwise in writing,  all payments shall be
made by wire transfer to:

                                      -31-
<PAGE>

                  Federal Reserve Bank of New York
                  Account No. 026002574 in the name of Barclays Bank PLC
                  Central Loan Administration
                  Control Account No. 050-01910-4
                  Central Loan

10.06.   Termination.  This Agreement shall terminate at the end of the Term.

10.07. Severability.  If any provision of any Operative Document is held invalid
or  unenforceable  to any extent or in any  application,  the  remainder of such
Operative Document and all other Operative Documents, or the application of such
provision to different  Persons or circumstances or in different  jurisdictions,
shall not be affected thereby.

10.08.  Survival. All covenants and agreements of the Borrowers contained herein
or made in writing in  connection  herewith  shall  survive  the  execution  and
delivery of the Operative Documents, the making of Loans hereunder, the granting
of security  and the  issuance of the Notes.  All  representations  and warrants
shall be made upon the  execution  and delivery of the  Operative  Documents and
upon the  making of each  Loan;  provided  that the right to declare an Event of
Default or bring an action  for  damages or  exercise  any other  remedy if such
representations  and  warranties  are found to have been  false in any  material
respect when made shall  survive the  execution  and  delivery of the  Operative
Documents and the making of each Loan.

10.09.  Governing Law. This  Agreement,  the other  Operative  Documents and the
rights and  obligations  of the parties  hereto and thereto shall be governed by
and construed and enforced in accordance with the laws of the State of New York.

10.10.  Successors and Assigns. This Agreement and the other Operative Documents
shall be binding  upon and inure to the benefit of Bank,  all future  holders of
the Notes, the Borrowers and their respective  successors and permitted assigns,
except  that no  Borrower  may assign or transfer  its rights  hereunder  or any
interest  herein  other than as  contemplated  by Section  7.03(f) of the Nextel
Agreement  without the prior written consent of Bank. Bank may sell to any other
entity (a  "Participant")  participation  interests in Bank's  rights under this
Agreement and the other Operative  Documents;  provided that notwithstanding the
sale of participation  or assignment of rights by Bank hereunder,  the Borrowers
shall continue to deal solely and directly with one Bank in connection with this
Agreement  and the other  Operative  Documents.  Bank may disclose the Operative
Documents and any other financial or other information relating to the Borrowers
or any Subsidiary to any potential  Participant,  provided that such Participant
agrees to protect the  confidentiality  of such documents and information  using
the same measures that it uses to protect its own confidential information.

                                      -32-
<PAGE>

10.11.   Counterparts.   This  Agreement  may  be  executed  in  any  number  of
counterparts and by different parties hereto on separate  counterparts,  each of
which,  when so  executed  and  delivered,  shall be an  original,  but all such
counterparts shall together constitute one and the same instrument.

10.12. Further Assurances.  Each Borrower will, at its own expense, from time to
time do, execute,  acknowledge and deliver all further acts, deeds, conveyances,
transfers and  assurances,  and all financing and  continuation  statements  and
similar  notices,  reasonably  necessary  or proper  for the  perfection  of the
security interest being herein provided for in the Collateral, whether now owned
or hereafter acquired.

10.13.  Confidentiality.  All information  (other than periodic reports filed by
Chadmoore  with  the  Securities  and  Exchange  Commission)  disclosed  by  the
Borrowers to Bank in writing or through  inspection  pursuant to this  Agreement
shall be considered confidential.  Bank agrees to use the same degree of care to
safeguard and prevent  disclosure of such confidential  information as Bank uses
with  its  own  confidential  information,  but  in any  event  no  less  than a
reasonable degree of care. Bank shall not disclose such information to any third
party  (other than  Bank's  members,  Bank's or Bank's  member's  attorneys  and
auditors  subject to the same  confidentiality  obligation set forth herein) and
shall use such  information  only for purposes of evaluation of its extension of
credit to Borrower and the exercise of Bank's rights and the  enforcement of its
remedies  under  this  Agreement  and  the  other  Operative   Agreements.   The
obligations of  confidentiality  shall not apply to any information that (a) was
known to the public prior to disclosure by a Borrower under this Agreement,  (b)
becomes known to the public  through no fault of Bank,  (c) is disclosed to Bank
by a third  party'  having a legal  right  to make  such  disclosure,  or (d) is
independently developed by Bank.

10.14.  Jury Trial.  EACH BORROWER AND BANK, TO THE FULLEST EXTENT  PERMITTED BY
APPLICABLE LAW, HEREBY  IRREVOCABLY  WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY
ISSUE RELATING HERETO IN ANY ACTION,  PROCEEDING, OR COUNTERCLAIM ARISING OUT OF
OR RELATING TO THIS AGREEMENT.

10.15.  Payments Free of Taxes,  Etc. All payments  made by the Borrowers  under
this  Agreement  shall be made by the  Borrowers  free and clear of and  without
deduction for any and all present and future taxes, levies, charges,  deductions
and withholdings.  In addition, the Borrowers shall pay upon demand any stamp or
other  taxes,  levies  or  charges  of  any  jurisdiction  with  respect  to the
execution,   delivery,   registration,   performance  and  enforcement  of  this
Agreement.  If any taxes,  levies,  charges or other  amounts are required to be
withheld from any amounts payable to Bank, hereunder,  the amounts so payable to
Bank shall be increased to the extent  necessary to yield to Bank (after payment
of all  such  amounts)  any  such  amounts  payable  hereunder  in the  amounts,
specified in this  Agreement.  Upon request by Bank, the Borrowers shall furnish
evidence  satisfactory to Bank that all requisite  authorizations  and approvals
by, and

                                      -33-
<PAGE>

notices to and filings with, governmental authorities and regulatory bodies have
been  obtained and made and that all  requisite  taxes,  levies and charges have
been paid.

10.16. Consent to Jurisdiction;  Venue. All judicial proceedings with respect to
this Agreement and the other Operative  Documents may be brought in any state or
federal court of competent  jurisdiction  in the Borough of Manhattan,  City and
State of New  York,  and by  execution  and  delivery  of this  Agreement,  each
Borrower accepts for itself and in connection with its properties, generally and
unconditionally,  the nonexclusive  jurisdiction of such courts, and irrevocably
agrees to be bound by any  judgment  rendered  thereby in  connection  with this
Agreement.  Each Borrower irrevocably waives any right it may have to assert the
doctrine  of forum  non  conveniens  or to  object  to venue to the  extent  any
proceeding is brought in accordance with this Section. Any action with regard to
Collateral,  may be brought wherever such Collateral is located.  Nothing herein
shall affect the right of Bank to bring proceedings against a Borrower in courts
of any jurisdiction.

         [Remainder of page intentionally left blank]

                                      -34-
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto,  by their officers  thereunto
duly authorized, have executed this Agreement as of the day and year first above
written.

Bank:                                       BARCLAYS BANK PLC

                                            By: /s/ Philip Capparis
                                            Name:  Philip Capparis
                                            Title:  Director

Borrowers:                                  CHADMOORE WIRELESS GROUP, INC.

                                            By: /s/ Robert W. Moore
                                            Name: Robert W. Moore
                                            Title: President

                                      -35-
<PAGE>

SCHEDULES

1        List of Subsidiaries
2        Conditions Precedent

EXHIBITS

A        Form of Secured Promissory Note
A-1      Form of Pledge Letter
B        Form of Borrower Joinder
C        Form of Guaranty
D        Form of Security Agreement

<PAGE>

                                   SCHEDULE 1

                              LIST OF SUBSIDIARIES

                  CHADMOORE COMMUNICATIONS, INC.

                  PTT TANNER, INC.

                  PTT BEACON HILL, INC.

                  PTT OF NEVADA, INC.

                  CMRS SYSTEMS, INC.

                  CHADMOORE COMMUNICATIONS OF TENNESSEE, INC.

                  PTT COMMUNICATIONS OF RICHMOND, LLC

                  PTT MAPLE, INC.

                  PTT COMMUNICATIONS OF HUNTSVILLE, LLC

                  PTT BURTON, INC.

                  PTT COMMUNICATIONS OF FORT WAYNE, LLC

                  PTT COMMUNICATIONS OF ROANOKE, LLC

                  PTT TRISTAN, INC.

                  PTT COMMUNICATIONS OF AUSTIN, LLC

                  PTT COMMUNICATIONS OF JACKSONVILLE, LLC

                  PTT COMMUNICATIONS OF VIRGINIA BEACH, LLC

                  PTT ROSELAND, INC.

                  PTT ARTINA, INC.

                  PTT FRANKLIN, INC.

                  PTT CHACO, INC.

                  800 SMR NETWORK, INC.

                  PTT COMMUNICATIONS OF BATON ROUGE LIMITED

<PAGE>

                  PTT COMMUNICATIONS OF LAKE CHARLES, LLC

                  PTT COMMUNICATIONS OF BAY CITY, LLC

<PAGE>
                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

PART I:
------

         At the time of execution  and delivery of this  Agreement,  there shall
also have been delivered to Lender:

         (a) The Guaranty;

         (b) The Security Agreement;

         (c) The Subordination Agreement;

         (d) An Initial Pledge Letter;

         (e) A favorable opinion of corporate  counsel for the Borrowers,  dated
             as of the  closing  date,  in form and  substance  satisfactory  to
             Lender.

         (f) Copies,  certified  by the  Secretary  or  Assistant  Secretary  of
             Chadmoore  as of the  closing  date,  of all  documents  evidencing
             action taken by such Borrower  authorizing the execution,  delivery
             and  performance  of the Operative  Documents to which  Borrower or
             such Guarantor is a party,  in form and substance  satisfactory  to
             Lender and its counsel;

         (g) Good  standing  certificates  for  Chadmoore  from (i) such party's
             state of  incorporation,  and (ii) the state in which such  party's
             principal place of business is located,  together with certificates
             of the applicable  governmental  authorities  that Borrower or such
             Guarantor is in compliance with the franchise tax laws of each such
             state, each dated as of a recent date;

         (h) All necessary consents of shareholders and other third parties with
             respect  to  the  execution,   delivery  and  performance  of  this
             Agreement,  the Guaranty, the Security Agreement, the Notes and the
             other Operative Documents;

         (i) Schedules  and  Exhibits  to the  Agreement  in form and  substance
             satisfactory to Lender;

         (j) True and correct copies of schedules to Senior Credit Agreement;

         (k) Loan  Request  (timely  made in  advance  of  funding  as if Credit
             Agreement then in effect)

         (l) A Disclosure Schedule in form and substance satisfactory to Lender.

<PAGE>

PART II
-------

         On or prior to the  Funding  Date of each  Loan,  each of the items set
forth in Part I of this  Schedule 2 shall have been  delivered to Lender and the
following conditions shall have been satisfied or waived by Lender:

         (a) Each  Borrower  shall  have  provided  to  Lender  such  documents,
             instruments   and  agreements  as  Lender  shall  have   reasonably
             requested to evidence the  perfection  and priority of the security
             interests  granted to Lender  pursuant to the  Security  Agreement,
             including  form UCC-1  Financing  Statements,  duly executed by the
             applicable Borrower;

         (b) Each new Subsidiary of Borrower  which has not previously  become a
             party to the Loan Agreement,  Security  Agreement and the Guaranty,
             shall execute and deliver and become a party to the Loan Agreement,
             Security Agreement and the Guaranty;

         (c) No  Event  of  Default  or  Default  shall  have  occurred  and  be
             continuing;

         (d) The representations and warranties  contained in this Agreement and
             the other  Operative  Documents  to which each  Borrower is a party
             shall be true and  correct in all  material  respects as if made on
             such Funding Date; and

         (e) Each of the Operative Documents remains in full force and effect.

PART III

         Conditions precedent to loans to Subsidiaries.

         (a) Resolutions;

         (b) Opinion of Counsel;

         (c) Incumbency;

         (d) The  applicable  Borrower shall have duly executed and delivered to
             Lender a Note prepared by Lender with respect to the Loan; and

         (e) UCCs.

                                      -2-
<PAGE>

                                    EXHIBIT A

                      SUBORDINATED SECURED PROMISSORY NOTE

$32,500,000                                                       Las Vegas, NV
                                                                August 31, 2000

                  Chadmoore Wireless Group, Inc., a Colorado  corporation,  (the
"Borrower"), FOR VALUE RECEIVED, hereby promises to pay to the order of Barclays
Bank PLC (the  "Bank") at its  offices  as  specified  in the  Credit  Agreement
referred to below,  or such other  place as may be  designated  by Bank,  on the
dates specified in the Credit Agreement, the principal sum of THIRTY-TWO MILLION
FIVE HUNDRED  THOUSAND DOLLARS  ($32,500,000),  or if less, the aggregate unpaid
principal  amount of all Advances,  made by the Bank to the Borrower,  in lawful
money of the  United  States of  America  and in  immediately  available  funds.
Capitalized  terms not defined  herein shall have the meanings given them in the
Credit Agreement referred to below.

                  The  Borrower  promises  also to pay  interest  on the  unpaid
principal amount hereof in like money at said office for the account of the Bank
from the date hereof until such principal  amount is paid in full at the rate or
rates per annum which shall be determined in accordance  with the  provisions of
the Credit Agreement dated as of August 31, 2000,  among Borrower,  Bank and the
other  parties  thereto (as such  Credit  Agreement  may be  amended,  restated,
modified  or  supplemented  from time to time,  the  "Credit  Agreement"),  said
interest  to be payable on the dates  specified  in the  Credit  Agreement.  All
unpaid  principal and interest shall in any event be payable not later than June
30, 2002.

                  This Note is the Secured  Promissory  Note  referred to in the
Credit  Agreement and is entitled to the benefits  thereof.  This Note evidences
Advances made by the Bank to the Borrower.  This Note is subject to  prepayment,
in whole or in part, as specified in the Credit  Agreement.  In case an Event of
Default shall occur and be continuing,  the principal of and accrued interest on
this Note may become or may be  declared to be due and payable in the manner and
with the effect provided in the Credit Agreement.

                  This Note is secured by and  entitled  to the  benefits of the
Security Agreement and reference is hereby made to the Credit Agreement and such
Security  Documents for a description of the properties  mortgaged,  pledged and
assigned,  the nature and extent of the collateral and the rights of the parties
to the Security Agreement in respect of such collateral.

                  The Borrower hereby waives  presentment,  protest or notice of
any kind in connection with this Note other than notices  required by the Credit
Agreement.

                  This  Note  shall  be  construed  in  accordance  with  and be
governed  by the  law of the  State  of New  York ,  without  giving  effect  to
principles of conflicts of law.

                                      CHADMOORE WIRELESS GROUP, INC.

                                      By:
                                         ---------------------------------------
                                           Name:

                                      A-1
<PAGE>

                                           Title:

                                      A-2
<PAGE>
                                                                     Schedule I

<TABLE>
<CAPTION>
                           LOAN AND REPAYMENT SCHEDULE

======================== ====================== ====================== ====================== ======================
                               Amount of Principal
                                                Repayment              Unpaid Principal       Notation Made By
Date                     Amount of Loan                                Balance
<S>                      <C>                    <C>                    <C>                    <C>
------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

------------------------ ---------------------- ---------------------- ---------------------- ----------------------

======================== ====================== ====================== ====================== ======================
</TABLE>

                                      A-3
<PAGE>

                                    EXHIBIT B

                                     FORM OF

                                BORROWER JOINDER

THIS  BORROWER  JOINDER (this  "Agreement"),  dated as of  __________,  ____, is
executed by [SUBSIDIARY], a ___________ [corporation] [partnership] [etc.] ("New
Subsidiary"), in favor of BARCLAYS BANK PLC (the "Bank").

                                    RECITALS

         A. Pursuant to a Credit Agreement dated as of August 31, 2000 (as
amended from time to time, the "Loan Agreement"), among Chadmoore Wireless
Group, Inc. ("Chadmoore") and certain Subsidiaries of Chadmoore (together with
Chadmoore, the "Borrowers") listed therein and Lender, Lender has agreed to
extend loans to Borrowers upon the terms and subject to the conditions set forth
therein.

         B. The Lender's obligation to extend loans to Borrowers under the Loan
Agreement is subject, among other conditions, to receipt by lender of a
Guaranty, dated as of the August ___, 2000 (the "Guaranty"), duly executed by
Chadmoore and each of its Subsidiaries and a Security Agreement, dated as of
March 2, 1999 (the "Security Agreement") duly executed by Chadmoore and each of
its Subsidiaries.

         C. Pursuant to Section 6.01(g) of the Loan Agreement, each Subsidiary
of Chadmoore that requests a Loan under the Credit Agreement is required to
become a Borrower under the Loan Agreement, and each new Subsidiary created is
required to become a Guarantor under the Guaranty and a Grantor under the
Security Agreement, by delivering and executing this Agreement to the Lender.

         D. New Subsidiary is a [new] Subsidiary of Chadmoore and expects to
derive substantial direct and indirect benefit from the transactions
contemplated by the Loan Agreement.

                                    AGREEMENT

         NOW,  THEREFORE,  in  consideration of the above recitals and for other
good and  valuable  consideration,  the receipt and adequacy of which are hereby
acknowledged, New Subsidiary hereby agrees with Lender, as follows:

         1. Definitions and Interpretation. Unless otherwise defined herein, all
capitalized terms used herein and defined in the Loan Agreement shall have the
respective meanings given

                                      C-1
<PAGE>

to those terms in the Loan Agreement. New Subsidiary acknowledges receipt of
copies of the Loan Agreement, the Guaranty, the Security Agreement and the other
Operative Documents.

         2. Representations and Warranties. On and as of the date of this
Agreement (the "Effective Date") and for the benefit of the Lender, New
Subsidiary hereby makes each of the representations and warranties made by (i)
each Borrower in the Loan Agreement, (ii) each Guarantor in the Guaranty and
(iii) each Grantor in the Security Agreement.

         3. Agreement to be Bound. New Subsidiary agrees that, on and as of the
Effective Date, it shall become a Borrower under the Loan Agreement, a Guarantor
under the Guaranty and a Grantor under the Security Agreement and shall be bound
by all the provisions of the Loan Agreement, the Guaranty and the Security
Agreement to the same extent as if New Subsidiary had executed the Loan
Agreement, the Guaranty and the Security Agreement on the Closing Date.

         4. Waiver. Without limiting the generality of the waivers in the
Guaranty, New Subsidiary specifically agrees to be bound by the Loan Agreement,
the Guaranty and the Security Agreement and waives any right to notice of
acceptance of its execution of this Agreement and of its agreement to be bound
by the Loan Agreement, the Guaranty and the Security Agreement.

         5. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

         IN WITNESS  WHEREOF,  New  Subsidiary  has caused this  Agreement to be
executed by its duly authorized officer.

                                              [SUBSIDIARY]

                                              By: _________________________
                                                  Name:
                                                  Title:

Address:

[                              ]
[                              ]
[                              ]
Attn:
Telephone:
Facsimile:

                                      C-2

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