Document:

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                                                                  Exhibit 10.3

                                  $135,000,000

                                CREDIT AGREEMENT

                                      AMONG

                       SPANISH BROADCASTING SYSTEM, INC.,

                                  AS BORROWER,

                                   THE LENDERS

                         FROM TIME TO TIME PARTY HERETO,

               MERRILL LYNCH, PIERCE FENNER & SMITH, INCORPORATED

                                       AND

                          DEUTSCHE BANK SECURITIES INC.

                           AS CO-DOCUMENTATION AGENTS,

                                       AND

                          LEHMAN COMMERCIAL PAPER INC.,

                AS SYNDICATION AGENT AND AS ADMINISTRATIVE AGENT

                          DATED AS OF OCTOBER 30, 2003

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

                              LEHMAN BROTHERS INC.

              SOLE ADVISOR, SOLE LEAD ARRANGER AND SOLE BOOK RUNNER

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                                TABLE OF CONTENTS

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SECTION 1.        DEFINITIONS....................................................................................1

         1.1      Defined Terms..................................................................................1

         1.2      Other Definitional Provisions.................................................................26

SECTION 2.        AMOUNT AND TERMS OF COMMITMENTS...............................................................26

         2.1      Term Loan Commitments.........................................................................26

         2.2      Procedure for Term Loan Borrowing.............................................................26

         2.3      Repayment of Term Loans.......................................................................27

         2.4      Revolving Credit Commitments..................................................................27

         2.5      Procedure for Revolving Credit Borrowing......................................................27

         2.6      Swing Line Commitment.........................................................................28

         2.7      Procedure for Swing Line Borrowing; Refunding of Swing Line Loans.............................28

         2.8      Repayment of Loans; Evidence of Indebtedness..................................................29

         2.9      Commitment Fees, etc..........................................................................30

         2.10     Termination or Reduction of Revolving Credit Commitments......................................30

         2.11     Optional Prepayments..........................................................................30

         2.12     Mandatory Prepayments and Commitment Reductions...............................................31

         2.13     Conversion and Continuation Options...........................................................33

         2.14     Minimum Amounts and Maximum Number of Eurodollar Tranches.....................................33

         2.15     Interest Rates and Payment Dates..............................................................33

         2.16     Computation of Interest and Fees..............................................................34

         2.17     Inability to Determine Interest Rate..........................................................34

         2.18     Pro Rata Treatment and Payments...............................................................35

         2.19     Requirements of Law...........................................................................36

         2.20     Taxes.........................................................................................37

         2.21     Indemnity.....................................................................................39

         2.22     Illegality....................................................................................39

         2.23     Change of Lending Office......................................................................39

         2.24     Replacement of Lenders under Certain Circumstances............................................39

SECTION 3.        LETTERS OF CREDIT.............................................................................40

         3.1      L/C Commitment................................................................................40

         3.2      Procedure for Issuance of Letter of Credit....................................................40

         3.3      Fees and Other Charges........................................................................40

         3.4      L/C Participations............................................................................41

         3.5      Reimbursement Obligation of the Borrower......................................................42

         3.6      Obligations Absolute..........................................................................42

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         3.7      Letter of Credit Payments.....................................................................42

         3.8      Applications..................................................................................43

SECTION 4.        REPRESENTATIONS AND WARRANTIES................................................................43

         4.1      Financial Condition...........................................................................43

         4.2      No Change.....................................................................................43

         4.3      Existence; Compliance with Law................................................................43

         4.4      Power; Authorization; Enforceable Obligations.................................................44

         4.5      No Legal Bar..................................................................................44

         4.6      No Material Litigation........................................................................44

         4.7      No Default....................................................................................44

         4.8      Ownership of Property; Liens..................................................................44

         4.9      Intellectual Property.........................................................................45

         4.10     Taxes.........................................................................................45

         4.11     Federal Regulations...........................................................................45

         4.12     Labor Matters.................................................................................45

         4.13     ERISA.........................................................................................45

         4.14     Investment Company Act; Other Regulations.....................................................46

         4.15     Subsidiaries..................................................................................46

         4.16     Use of Proceeds...............................................................................46

         4.17     Environmental Matters.........................................................................47

         4.18     Accuracy of Information, etc..................................................................47

         4.19     Security Documents............................................................................48

         4.20     Solvency......................................................................................48

         4.21     Senior Indebtedness...........................................................................48

         4.22     Insurance.....................................................................................49

         4.23     Permits and Licenses..........................................................................49

SECTION 5.        CONDITIONS PRECEDENT..........................................................................50

         5.1      Conditions to Initial Extension of Credit.....................................................50

         5.2      Conditions to Each Extension of Credit........................................................52

SECTION 6.        AFFIRMATIVE COVENANTS.........................................................................53

         6.1      Financial Statements..........................................................................53

         6.2      Certificates; Other Information...............................................................53

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         6.3      Payment of Obligations........................................................................55

         6.4      Conduct of Business and Maintenance of Existence, FCC Licenses, etc...........................55

         6.5      Maintenance of Property; Insurance............................................................55

         6.6      Inspection of Property; Books and Records; Discussions........................................56

         6.7      Notices.......................................................................................56

         6.8      Environmental Laws............................................................................57

         6.9      Broadcast License Subsidiaries................................................................57

         6.10     Additional Collateral, etc....................................................................58

         6.11     Use of Proceeds...............................................................................60

         6.12     Further Assurances............................................................................60

         6.13     Corporate Structure...........................................................................60

SECTION 7.        NEGATIVE COVENANTS............................................................................60

         7.1      Financial Condition Covenants.................................................................60

         7.2      Limitation on Indebtedness....................................................................63

         7.3      Limitation on Liens...........................................................................64

         7.4      Limitation on Fundamental Changes.............................................................65

         7.5      Limitation on Disposition of Property.........................................................65

         7.6      Limitation on Restricted Payments.............................................................66

         7.7      Limitation on Capital Expenditures............................................................67

         7.8      Limitation on Investments.....................................................................67

         7.9      Limitation on Subordinated Indebtedness.......................................................68

         7.10     Limitation on Transactions with Affiliates....................................................69

         7.11     Limitation on Sales and Leasebacks............................................................69

         7.12     Limitation on Changes in Fiscal Periods.......................................................69

         7.13     Limitation on Negative Pledge Clauses.........................................................69

         7.14     Limitation on Restrictions on Subsidiary Distributions, etc...................................70

         7.15     Limitation on Lines of Business...............................................................70

         7.16     Broadcast License Subsidiaries................................................................70

         7.17     Amendment of Certain Documents................................................................70

SECTION 8.        EVENTS OF DEFAULT.............................................................................71

SECTION 9.        THE AGENTS and ARRANGER.......................................................................74

         9.1      Appointment...................................................................................74

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         9.2      Delegation of Duties..........................................................................74

         9.3      Exculpatory Provisions........................................................................74

         9.4      Reliance by Agents............................................................................75

         9.5      Notice of Default.............................................................................75

         9.6      Non-Reliance on Agents and Other Lenders......................................................75

         9.7      Indemnification...............................................................................76

         9.8      Arranger and Agents in Their Individual Capacities............................................76

         9.9      Successor Administrative Agent................................................................76

         9.10     Authorization to Release Liens................................................................77

         9.11     The Arranger, Syndication Agent and Co-Documentation Agents...................................77

SECTION 10.       MISCELLANEOUS.................................................................................77

         10.1     Amendments and Waivers........................................................................77

         10.2     Notices.......................................................................................78

         10.3     No Waiver; Cumulative Remedies................................................................79

         10.4     Survival of Representations and Warranties....................................................79

         10.5     Payment of Expenses...........................................................................79

         10.6     Successors and Assigns; Participations and Assignments........................................80

         10.7     Adjustments; Set-off..........................................................................82

         10.8     Counterparts..................................................................................83

         10.9     Severability..................................................................................83

         10.10    Integration...................................................................................83

         10.11    GOVERNING LAW.................................................................................83

         10.12    Submission To Jurisdiction; Waivers...........................................................83

         10.13    Acknowledgments...............................................................................84

         10.14    Confidentiality...............................................................................84

         10.15    Release of Collateral and Guarantee Obligations...............................................85

         10.16    Accounting Changes............................................................................85

         10.17    Delivery of Lender Addenda....................................................................85

         10.18    Construction..................................................................................86

         10.19    WAIVERS OF JURY TRIAL.........................................................................86

         10.20    Designated Senior Debt........................................................................86

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                                TABLE OF CONTENTS
                                   (CONTINUED)

SCHEDULES:

4.3      Compliance With Law
4.6      Litigation
4.9      Intellectual Property
4.10     Certain Existing Liens
4.15     Subsidiaries
4.16(a)  Sources and Uses Table
4.19     UCC Filing Jurisdictions
5.1(m)   Real Property Mortgages at Closing
7.2(d)   Existing Indebtedness
7.3(f)   Existing Liens
7.8(g)   Existing Investments
7.10     Existing Affiliate Transactions
7.13     Existing Agreements with Negative Pledge Clauses

ANNEXES

Annex A - Pricing Grid

EXHIBITS

A        Form of Compliance and Pricing Certificate
B        Form of Guarantee and Collateral Agreement
C        Form of Lender Addendum
D        Form of Notice of Borrowing
E        Form of Solvency Certificate
F-1      Form of Term Note
F-2      Form of Revolving Credit Note
F-3      Form of Swing Line Note
G        Form of Exemption Certificate
H        Form of Closing Certificate
J        Form of Assignment and Acceptance

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<PAGE>
                  CREDIT AGREEMENT, dated as of October 30, 2003, among SPANISH
BROADCASTING SYSTEM, INC., a Delaware corporation (the "BORROWER"), the several
banks and other financial institutions or entities from time to time party to
this Agreement (the "LENDERS"), MERRILL LYNCH, PIERCE FENNER & SMITH,
INCORPORATED and DEUTSCHE BANK SECURITIES INC., as co-documentation agents (in
such capacity, the "CO-DOCUMENTATION AGENTS"), LEHMAN COMMERCIAL PAPER INC., as
syndication agent (in such capacity, the "SYNDICATION Agent") and LEHMAN
COMMERCIAL PAPER INC., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT").

                              W I T N E S S E T H:

                  WHEREAS, the Borrower has requested that the Lenders make (a)
a term loan credit facility available to the Borrower in order to (i) finance
the KXOL Acquisition (as hereinafter defined), (ii) pay costs and expenses
incurred in connection with the Facilities and the Borrower's issuance of the
Preferred Stock (as hereinafter defined), (iii) provide excess cash to the
Borrower and (iv) fund working capital needs and general corporate purposes of
the Borrower and its Subsidiaries and (b) a revolving credit facility available
to the Borrower for the working capital needs and general corporate purposes of
the Borrower and its Subsidiaries; and

                  WHEREAS, the Lenders are willing to make such credit
facilities available upon and subject to the terms and conditions hereinafter
set forth.

                  NOW, THEREFORE, in consideration of the premises and the
agreements hereinafter set forth, the parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS

                  1.1 Defined Terms. As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in this Section
1.1.

                  "ACQUIRED BUSINESS": as defined in the definition of
         "ACQUISITION" set forth in this Section 1.1.

                  "ACQUISITION": any acquisition, consisting of a single
         transaction or a series of related transactions, by the Borrower or any
         one or more of its Wholly Owned Subsidiaries of any Capital Stock of,
         or all or a substantial part of the assets of, or of a business unit or
         division of, any Person engaged in a Permitted Business that is
         organized under the laws of the United States or any state or territory
         thereof (such Person, assets, business unit or division, the "ACQUIRED
         BUSINESS").

                  "ACQUISITION CONSIDERATION": as defined in the definition of
         "PERMITTED ACQUISITIONS" set forth in this Section 1.1.

                  "ACQUISITION DOCUMENTATION": the agreements governing or
         relating to any Permitted Acquisition and all schedules, exhibits,
         annexes and amendments thereto and all side letters and agreements
         affecting the terms thereof or entered into in connection therewith, in
         each case, as amended supplemented, replaced or otherwise modified from
         time to time.

                  "ADMINISTRATIVE AGENT": as defined in the preamble hereto.

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                  "AFFILIATE": as to any Person, any other Person that, directly
         or indirectly, is in control of, is controlled by, or is under common
         control with, such Person. For purposes of this definition, "control"
         of a Person means the power, directly or indirectly, either to (a) vote
         10% or more of the securities having ordinary voting power for the
         election of directors (or persons performing similar functions) of such
         Person or (b) direct or cause the direction of the management and
         policies of such Person, whether by contract or otherwise.

                  "AGENTS": the collective reference to the Administrative
         Agent, the Syndication Agent and the Co-Documentation Agents.

                  "AGGREGATE EXPOSURE": with respect to any Lender at any time,
         an amount equal to (a) prior to termination of the Term Loan
         Commitments, the aggregate amount of such Lender's Commitments then in
         effect and (b) thereafter, the sum of (i) the principal amount of such
         Lender's Term Loans then outstanding and (ii) the amount of such
         Lender's Revolving Credit Commitment then in effect or, if the
         Revolving Credit Commitments have terminated, the principal amount of
         such Lender's Revolving Extensions of Credit then outstanding.

                  "AGGREGATE EXPOSURE PERCENTAGE": with respect to any Lender at
         any time, the ratio (expressed as a percentage) of such Lender's
         Aggregate Exposure at such time to the Aggregate Exposure of all
         Lenders at such time.

                  "AGREEMENT": this Credit Agreement, as amended, supplemented,
         replaced or otherwise modified from time to time.

                  "APPLICABLE MARGIN": for each Type of Loan, the rate per annum
         set forth under the relevant column heading below:

                                             Base Rate Loans   Eurodollar Loans
                                             ---------------   ----------------

                   Term Loans                     2.25%             3.25%

                   Revolving Credit Loans         2.00%             3.00%
                   and Swing Line Loans

         PROVIDED that on and after the Grid Effective Date, the Applicable
         Margin with respect to Revolving Credit Loans and Swing Line Loans will
         be determined pursuant to the Pricing Grid.

                  "APPLICATION": an application, in such form as the Issuing
         Lender may specify from time to time, requesting the Issuing Lender to
         open a Letter of Credit.

                  "ARRANGER": as defined in Section 9.11.

                  "ASSET SALE": any Disposition of Property or series of related
         Dispositions of Property (excluding any such Disposition permitted by
         clause (a), (b), (c) or (d) of Section 7.5) that yields gross proceeds
         to the Borrower or any of its Subsidiaries (valued at the initial
         principal amount thereof in the case of non-cash proceeds consisting of
         notes or other debt securities and valued at fair market value in the
         case of other non-cash proceeds) in excess of $250,000.

                  "ASSIGNEE": as defined in Section 10.6(c).

                  "ASSIGNOR": as defined in Section 10.6(c).

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                  "AVAILABLE REVOLVING CREDIT COMMITMENT": as to any Revolving
         Credit Lender at any time, an amount equal to the excess, if any, of
         (a) such Lender's Revolving Credit Commitment then in effect over (b)
         such Lender's Revolving Extensions of Credit then outstanding; PROVIDED
         that in calculating any Lender's Revolving Extensions of Credit for the
         purpose of determining such Lender's Available Revolving Credit
         Commitment pursuant to Section 2.9(a), the aggregate principal amount
         of Swing Line Loans then outstanding shall be deemed to be zero.

                  "BASE RATE": for any day, a rate per annum (rounded upwards,
         if necessary, to the next 1/100 of 1%) equal to the greatest 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%. For purposes hereof: "PRIME
         RATE": the rate publicly quoted from time to time by THE WALL STREET
         JOURNAL as the "base rate on corporate loans posted by at least 75% of
         the nation's 30 largest banks" (or, if THE WALL STREET JOURNAL ceases
         quoting a base rate of the type described, the highest per annum rate
         of interest published by the Federal Reserve Board in Federal Reserve
         statistical release H.15 (519) entitled "Selected Interest Rates" as
         the Bank prime loan rate or its equivalent).

                  "BASE RATE LOANS": Loans for which the applicable rate of
         interest is based upon the Base Rate.

                  "BENEFITED LENDER": as defined in Section 10.7.

                  "BOARD": the Board of Governors of the Federal Reserve System
         of the United States (or any successor).

                  "BORROWER": as defined in the preamble hereto.

                  "BORROWING DATE": any Business Day specified by the Borrower
         as a date on which the Borrower requests the relevant Lender(s) to make
         Loans hereunder.

                  "BROADCAST LICENSE SUBSIDIARY": a Wholly Owned Subsidiary of
         the Borrower that owns no material assets other than FCC Licenses and
         related rights and has no liabilities other than (i) liabilities
         arising under the Guarantee and Collateral Agreement and (ii) trade
         payables incurred in the ordinary course of business and tax
         liabilities incidental to ownership of such rights.

                  "BUSINESS DAY": (i) for all purposes other than as covered by
         clause (ii) below, a day other than a Saturday, Sunday or other day on
         which commercial banks in New York City are authorized or required by
         law to close and (ii) with respect to all notices and determinations in
         connection with, and payments of principal and interest on, Eurodollar
         Loans, any day which is a Business Day described in clause (i) and
         which is also a day for trading by and between banks in Dollar deposits
         in the interbank eurodollar market.

                  "CAPITAL EXPENDITURES": for any period, with respect to any
         Person, the aggregate of all expenditures (other than those made in
         payment of purchase consideration for Permitted Acquisitions) by such
         Person and its Subsidiaries for the acquisition or leasing (pursuant to
         a capital lease) of fixed or capital assets or additions to equipment
         (including replacements, capitalized repairs and improvements during
         such period) that should be capitalized in conformity with GAAP on a
         consolidated balance sheet of such Person and its Subsidiaries.

                  "CAPITAL LEASE OBLIGATIONS": as to any Person, the obligations
         of such Person to pay rent or other amounts under any lease of (or
         other arrangement conveying the right to use) real or

                                      -3-
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         personal property, or a combination thereof, which obligations are
         required to be classified and accounted for as capital leases on a
         balance sheet of such Person in conformity with GAAP, and, for the
         purposes of this Agreement, the amount of such obligations at any time
         shall be the capitalized amount thereof at such time determined in
         conformity with GAAP.

                  "CAPITAL STOCK": any and all shares, interests, participations
         or other equivalents (however designated) of capital stock of a
         corporation, any and all equivalent ownership or profit interests in a
         Person (other than a corporation) and any and all warrants, rights or
         options to purchase any of the foregoing.

                  "CASH EQUIVALENTS": (a) marketable direct obligations issued
         by, or unconditionally guaranteed by, the United States Government or
         issued by any agency thereof and backed by the full faith and credit of
         the United States, in each case maturing within one year from the date
         of acquisition; (b) certificates of deposit, time deposits, eurodollar
         time deposits or overnight bank deposits having maturities of six
         months or less from the date of acquisition issued by any Lender or by
         any commercial bank organized under the laws of the United States of
         America or any state thereof having combined capital and surplus of not
         less than $500,000,000; (c) commercial paper of an issuer rated at
         least A-1 by Standard & Poor's Ratings Services ("S&P") or P-1 by
         Moody's Investors Service, Inc. ("MOODY'S"), or carrying an equivalent
         rating by a nationally recognized rating agency, if both of the two
         named rating agencies cease publishing ratings of commercial paper
         issuers generally, and maturing within six months from the date of
         acquisition; (d) repurchase obligations of any Lender or of any
         commercial bank satisfying the requirements of clause (b) of this
         definition, having a term of not more than 30 days with respect to
         securities issued or fully guaranteed or insured by the United States
         government; (e) securities with maturities of one year or less from the
         date of acquisition issued or fully guaranteed by any state,
         commonwealth or territory of the United States, by any political
         subdivision or taxing authority of any such state, commonwealth or
         territory or by any foreign government, the securities of which state,
         commonwealth, territory, political subdivision, taxing authority or
         foreign government (as the case may be) are rated at least A by S&P or
         A by Moody's; (f) securities with maturities of six months or less from
         the date of acquisition backed by standby letters of credit issued by
         any Lender or any commercial bank satisfying the requirements of clause
         (b) of this definition; or (g) shares of money market mutual or similar
         funds which invest exclusively in assets satisfying the requirements of
         clauses (a) through (f) of this definition.

                  "CERTIFICATES OF DESIGNATION": the Borrower's Certificate of
         Designations setting forth the Voting Power, Preferences and Relative,
         Participating, Optional and Other Special Rights and Qualifications,
         Limitations and Restrictions of the Borrower's 10 3/4% Series A
         Cumulative Exchangeable Redeemable Preferred Stock and the Certificate
         of Designations setting forth the Voting Power, Preferences and
         Relative, Participating, Optional and Other Special Rights and
         Qualifications, Limitations and Restrictions of the Borrower's 10 3/4%
         Series B Cumulative Exchangeable Redeemable Preferred Stock, as the
         case may be, each as filed with the Secretary of State of Delaware on
         October 29, 2003, as in effect on the Closing Date or as amended,
         modified or supplemented in accordance with the terms of Borrower's
         certificate of incorporation, its terms, the terms of applicable
         Delaware law and the terms of this Agreement.

                  "CLOSING DATE": October 30 2003.

                  "CODE": the Internal Revenue Code of 1986, as amended from
         time to time.

                  "CO-DOCUMENTATION AGENTS": as defined in the preamble hereto.

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                  "COLLATERAL": all Property of the Loan Parties, now owned or
         hereafter acquired, upon which a Lien is purported to be created by any
         Security Document, including the Intellectual Property Collateral.

                  "COMMITMENT": as to any Lender, the sum of the Term Loan
         Commitment and the Revolving Credit Commitment of such Lender.

                  "COMMITMENT FEE RATE": 0.5% per annum.

                  "COMMITMENT LETTER": the commitment letter, dated October 8,
         2003, by and among the Administrative Agent, the Arranger, the
         Co-Documentation Agents, Merrill Lynch Capital Corporation, Deutsche
         Bank Trust Company Americas and the Borrower, as amended, modified or
         supplemented from time to time.

                  "COMMONLY CONTROLLED ENTITY": an entity, whether or not
         incorporated, which is under common control with the Borrower within
         the meaning of Section 4001 of ERISA or is part of a group that
         includes the Borrower and that is treated as a single employer under
         Section 414 of the Code.

                  "COMPLIANCE AND PRICING CERTIFICATE": a certificate duly
         executed by a Responsible Officer substantially in the form of Exhibit
         A.

                  "CONFIDENTIAL INFORMATION MEMORANDUM": the information
         memorandum furnished to the Persons invited in the syndication of the
         Facilities to become Lenders.

                  "CONSOLIDATED EBITDA": of any Person for any period,
         Consolidated Net Income of such Person and its Subsidiaries for such
         period plus, without duplication and to the extent reflected as a
         charge in the statement of such Consolidated Net Income for such
         period, the sum of (a) income tax expense, (b) Consolidated Interest
         Expense of such Person and its Subsidiaries, amortization or write-off
         of debt discount and debt issuance costs and commissions, discounts and
         other fees and charges associated with Indebtedness (including, in the
         case of the Borrower, the Loans and Letters of Credit), (c)
         depreciation and amortization expense, (d) amortization of intangibles
         (including goodwill) and organization costs, (e) any extraordinary,
         unusual or non-recurring expenses or losses (including, whether or not
         otherwise includable as a separate item in the statement of such
         Consolidated Net Income for such period, losses on sales of assets
         outside of the ordinary course of business) and (f) any other non-cash
         charges, and minus, to the extent included in the statement of such
         Consolidated Net Income for such period, the sum of (i) interest income
         (except to the extent deducted in determining Consolidated Interest
         Expense), (ii) any extraordinary, unusual or non-recurring income or
         gains (including, whether or not otherwise includable as a separate
         item in the statement of such Consolidated Net Income for such period,
         gains on the sales of assets outside of the ordinary course of
         business) and (iii) any other non-cash income, all as determined on a
         consolidated basis; PROVIDED, HOWEVER, that in calculating Consolidated
         EBITDA solely for the use of such term in the definitions of
         Consolidated Senior Debt Ratio and Consolidated Senior Secured Debt
         Ratio for any period (i) the Consolidated EBITDA of any Person acquired
         by the Borrower or any of its Subsidiaries during such period shall be
         included on a pro forma basis for such period (assuming the
         consummation of such acquisition and the incurrence or assumption of
         any Indebtedness in connection therewith occurred on the first day of
         such period) if the consolidated balance sheet of such acquired Person
         and its consolidated Subsidiaries as at the end of the period preceding
         the acquisition of such Person and the related consolidated statements
         of income and stockholders' equity and of cash flows for the period in
         respect of which Consolidated EBITDA is to be calculated (x) have been

                                      -5-
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         previously provided to the Administrative Agent and the Lenders and (y)
         either (1) have been reported on without a qualification arising out of
         the scope of the audit by independent certified public accountants of
         nationally recognized standing or (2) have been found acceptable by the
         Administrative Agent and (ii) the Consolidated EBITDA of any Person
         Disposed of by the Borrower or its Subsidiaries during such period
         shall be excluded for such period (assuming the consummation of such
         Disposition and the repayment of any Indebtedness in connection
         therewith occurred on the first day of such period).

                  "CONSOLIDATED FIXED CHARGE COVERAGE RATIO": for any period,
         the ratio of (a) Consolidated EBITDA of the Borrower and its
         Subsidiaries for such period minus (i) the aggregate amount actually
         paid by the Borrower and its Subsidiaries in cash during such period on
         account of Capital Expenditures (but not including any Capital
         Expenditures made with the proceeds of any Reinvestment Deferred Amount
         or from 50% of the Net Cash Proceeds of an issuance and sale of Capital
         Stock as set forth in clause (iii)(x) of Section 7.7) and (ii)
         provision for cash income taxes made by the Borrower and its
         Subsidiaries on a consolidated basis in respect of such period, to (b)
         Consolidated Fixed Charges for such period.

                  "CONSOLIDATED FIXED CHARGES": for any period, the sum (without
         duplication) of (a) Consolidated Interest Expense of the Borrower and
         its Subsidiaries for such period, and scheduled payments made during
         such period on account of principal of Indebtedness of the Borrower or
         any of its Subsidiaries (including scheduled principal payments in
         respect of the Term Loans).

                  "CONSOLIDATED INTEREST COVERAGE RATIO": for any period, the
         ratio of (a) Consolidated EBITDA of the Borrower and its Subsidiaries
         for such period to (b) Consolidated Interest Expense of the Borrower
         and its Subsidiaries for such period.

                  "CONSOLIDATED INTEREST EXPENSE": of any Person for any period,
         (i) total cash interest expense (including that attributable to Capital
         Lease Obligations) of such Person and its Subsidiaries for such period
         on a consolidated basis with respect to all outstanding Indebtedness of
         such Person and its Subsidiaries (including all commissions, discounts
         and other fees and charges owed by such Person with respect to letters
         of credit and bankers' acceptance financing and net costs of such
         Person under Hedge Agreements in respect of interest rates to the
         extent such net costs are allocable to such period in accordance with
         GAAP), net of the interest income of such Person and its Subsidiaries
         for such period on a consolidated basis plus (ii) cash dividends paid
         on the Preferred Stock during such period; PROVIDED, HOWEVER, that for
         the purposes of calculating Consolidated Interest Coverage Ratio and
         Consolidated Fixed Charge Coverage Ratio for the periods ending on
         March 31, 2004, June 30, 2004 and September 30, 2004, respectively,
         Consolidated Interest Expense for the periods of one, two and three
         fiscal quarters ending on such dates, respectively, shall be deemed to
         be the amount of actual Consolidated Interest Expense for such periods
         multiplied by 4.000, 2.000 and 1.334, respectively.

                  "CONSOLIDATED LEVERAGE RATIO": as at the last day of any
         period of four consecutive fiscal quarters, the ratio of (a)
         Consolidated Total Debt on such day to (b) Consolidated EBITDA for such
         period.

                  "CONSOLIDATED NET INCOME": of any Person for any period, the
         consolidated net income (or loss) of such Person and its Subsidiaries
         for such period, determined on a consolidated basis in accordance with
         GAAP; PROVIDED that in calculating Consolidated Net Income of the
         Borrower and its Subsidiaries for any Period, there shall be excluded
         (a) the income (or deficit) of any Person accrued prior to the date it
         becomes a Subsidiary of the Borrower or is merged into or

                                      -6-
<PAGE>

         consolidated with the Borrower or any of its Subsidiaries, (b) the
         income (or deficit) of any Person (other than a Subsidiary of the
         Borrower) in which the Borrower or any of its Subsidiaries has an
         ownership interest, except to the extent that any such income is
         actually received by the Borrower or such Subsidiary in the form of
         dividends or similar distributions and (c) the undistributed earnings
         of any Subsidiary of the Borrower to the extent that the declaration or
         payment of dividends or similar distributions by such Subsidiary is not
         at the time permitted by the terms of any Contractual Obligation (other
         than under any Loan Document) or Requirement of Law applicable to such
         Subsidiary.

                  "CONSOLIDATED SENIOR DEBT": all Consolidated Total Debt, other
         than Subordinated Debt.

                  "CONSOLIDATED SENIOR DEBT RATIO": as of the last day of any
         period of four consecutive fiscal quarters, the ratio of (a)
         Consolidated Senior Debt on such day to (b) Consolidated EBITDA for
         such period.

                  "CONSOLIDATED SENIOR SECURED DEBT": all Consolidated Total
         Debt that by its terms is secured by a Lien upon any Property of the
         Borrower or any of its Subsidiaries, regardless of whether the value of
         such collateral security is at least equal to the amount of such
         Indebtedness.

                  "CONSOLIDATED SENIOR SECURED DEBT RATIO": as of the last day
         of any period of four consecutive fiscal quarters, the ratio of (a)
         Consolidated Senior Secured Debt on such day to (b) Consolidated EBITDA
         for such period.

                  "CONSOLIDATED TOTAL DEBT": at any date, the aggregate
         principal amount of all Funded Debt of the Borrower and its
         Subsidiaries at such date, required to be reported on a consolidated
         balance sheet prepared in accordance with GAAP.

                  "CONTINUING DIRECTORS": as to any Person, the directors of
         such Person on the Closing Date and each other director of such Person
         whose nomination for election to the board of directors of such Person
         is recommended by, or whose election was approved by, at least a
         majority of the then Continuing Directors or who received the vote of
         each of the shareholders of such Person on the Closing Date in his or
         her election by the shareholders of such Person.

                  "CONTRACTUAL OBLIGATION": as to any Person, any provision of
         any security issued by such Person or of any agreement, instrument or
         other undertaking to which such Person is a party or by which it or any
         of its Property is bound.

                  "CONTROL AGREEMENT": each Control Agreement to be executed and
         delivered by each Loan Party party thereto, substantially in the form
         of Exhibit E, Exhibit F, Exhibit G, Exhibit H or Exhibit I, as the case
         may be, to the Guarantee and Collateral Agreement, as the same may be
         amended, supplemented, replaced or otherwise modified from time to time
         in accordance with this Agreement.

                  "CONTROL INVESTMENT AFFILIATE": as to any Person, any other
         Person that (a) directly or indirectly, is in control of, is controlled
         by, or is under common control with, such Person and (b) is organized
         by such Person primarily for the purpose of making equity or debt
         investments in one or more companies. For purposes of this definition,
         "control" of a Person means the power, directly or indirectly, to
         direct or cause the direction of the management and policies of such
         Person whether by contract or otherwise.

                                      -7-
<PAGE>

                  "COPYRIGHT SECURITY AGREEMENT SUPPLEMENT": as defined in the
         Guarantee and Collateral Agreement.

                  "DEFAULT": any of the events specified in Section 8, whether
         or not any requirement set forth therein for the giving of notice, the
         lapse of time, or both, has been satisfied.

                  "DERIVATIVES COUNTERPARTY": as defined in Section 7.6.

                  "DISPOSITION": with respect to any Property, and except as
         otherwise provided in Sections 7.13(a)(x) and 7.15 of the Guarantee and
         Collateral Agreement, any sale, lease, license, sale and leaseback,
         assignment, conveyance, transfer or other disposition thereof, but not
         including the issuance of Capital Stock by the Borrower; and the terms
         "DISPOSE" and "DISPOSED OF" shall have correlative meanings.

                  "DISQUALIFIED EQUITY ISSUANCE": an issuance by the Borrower or
         any of its Subsidiaries of any Disqualified Stock.

                  "DISQUALIFIED STOCK": any Capital Stock (or any security into
         which such Capital Stock is convertible or for which it is exchangeable
         at the option of the holder thereof) of the Borrower or any of its
         Subsidiaries that any of them is or, upon the passage of time or the
         occurrence of any event (other than an asset sale or change of
         control), may become obligated to redeem, purchase, retire, defease or
         otherwise make any payment in respect of (except payments consisting of
         Capital Stock that does not constitute Disqualified Stock) at any time
         prior to the date six months following the Term Loan Maturity Date.

                  "DOLLARS" and "$": dollars in lawful currency of the United
         States of America.

                  "DOMESTIC SUBSIDIARY": any Subsidiary of the Borrower
         organized under the laws of the District of Columbia or any state
         within the United States of America.

                  "ELIGIBLE ASSIGNEE": commercial banks, finance companies,
         insurance companies or other financial institutions or any Person
         (other than a natural Person) that is engaged in making, purchasing,
         holding or otherwise investing in commercial loans and similar
         extensions of credit in the ordinary course of its business.

                  "ENVIRONMENTAL LAWS": any and all laws, rules, orders,
         regulations, statutes, ordinances, codes, decrees or other legally
         enforceable requirements (including common law) of any international
         authority, foreign government, the United States, or any state, local,
         municipal or other Governmental Authority, regulating, relating to or
         imposing liability or standards of conduct concerning protection of the
         environment or of human health, as has been, is now, or may at any time
         hereafter be, in effect.

                  "ENVIRONMENTAL PERMITS": any and all permits, licenses,
         approvals, registrations, notifications, exemptions and any other
         authorization required under any Environmental Law.

                  "ERISA": the Employee Retirement Income Security Act of 1974,
         as amended from time to time.

                  "EUROCURRENCY RESERVE REQUIREMENTS": for any day as applied to
         a Eurodollar Loan, the aggregate (without duplication) of the maximum
         rates (expressed as a decimal fraction) of reserve requirements in
         effect on such day (including basic, supplemental, marginal and
         emergency

                                      -8-
<PAGE>

         reserves under any regulations of the Board or other Governmental
         Authority having jurisdiction with respect thereto) dealing with
         reserve requirements prescribed for eurocurrency funding (currently
         referred to as "Eurocurrency Liabilities" in Regulation D) maintained
         by a member bank of the Federal Reserve System. Eurodollar Loans shall
         be deemed to constitute Eurocurrency Liabilities and to be subject to
         such reserve requirements without benefit or credit for proration,
         exceptions or offsets that may be available from time to time to any
         Lender under Regulation D.

                  "EURODOLLAR BASE RATE": with respect to each day during each
         Interest Period pertaining to a Eurodollar Loan, the rate per annum
         determined on the basis of the rate for deposits in Dollars for a
         period equal to such Interest Period commencing on the first day of
         such Interest Period appearing on Page 3750 of the Telerate screen as
         of 11:00 A.M., London time, two Business Days prior to the beginning of
         such Interest Period. In the event that such rate does not appear on
         Page 3750 of the Telerate screen (or otherwise on such screen), the
         "Eurodollar Base Rate" for purposes of this definition shall be
         determined by reference to such other comparable publicly available
         service for displaying eurodollar rates as may be selected by the
         Administrative Agent.

                  "EURODOLLAR LOANS": Loans the rate of interest applicable to
         which is based upon the Eurodollar Rate.

                  "EURODOLLAR RATE": with respect to each day during each
         Interest Period pertaining to a Eurodollar Loan, a rate per annum
         determined for such day in accordance with the following formula
         (rounded upward to the nearest 1/100th of 1%):

                              Eurodollar Base Rate
                    ----------------------------------------
                    1.00 - Eurocurrency Reserve Requirements

                  "EURODOLLAR TRANCHE": the collective reference to Eurodollar
         Loans the then current Interest Periods with respect to all of which
         begin on the same date and end on the same later date (whether or not
         such Loans shall originally have been made on the same day).

                  "EVENT OF DEFAULT": any of the events specified in Section 8,
         PROVIDED that any requirement set forth therein for the giving of
         notice, the lapse of time, or both, has been satisfied.

                  "EXCHANGE SUBORDINATED DEBT": Subordinated Debt issued
         pursuant to Section 8 of the Certificates of Designation and pursuant
         to an indenture substantially in the form of Exhibit A thereto, which
         indenture includes, among other things, an express provision
         designating the Exchange Subordinated Debt as "Subordinated Debt" for
         purposes of this Agreement and designating this Agreement as a "Senior
         Credit Facility" and as "Designated Senior Debt" referred to therein.

                  "EXCLUDED ASSETS": as defined in the Guarantee and Collateral
         Agreement.

                  "EXCLUDED FOREIGN SUBSIDIARY": any Foreign Subsidiary other
         than (a) any Foreign Subsidiary that has elected to be taxed as a
         partnership or a disregarded entity pursuant to Section 301.7701-3 of
         the United States Treasury Regulations, (b) Spanish Broadcasting System
         of Puerto Rico, Inc. and its Subsidiaries and (c) any Foreign
         Subsidiary that has guaranteed or is required to guarantee the Senior
         Subordinated Notes or any other Subordinated Debt.

                                      -9-
<PAGE>

                  "FACILITY": each of (a) the Term Loan Commitments and the Term
         Loans made thereunder (the "TERM LOAN FACILITY") and (b) the Revolving
         Credit Commitments and the extensions of credit made thereunder (the
         "REVOLVING CREDIT FACILITY").

                  "FAIR MARKET VALUE": (a) with respect to any asset or group of
         assets (other than a marketable security) at any date, the value of the
         consideration obtainable in a sale of such asset at such date assuming
         a sale by a willing seller to a willing purchaser dealing at arm's
         length and arranged in an orderly manner over a reasonable period of
         time having regard to the nature and characteristics of such asset, as
         reasonably determined by the Board of Directors of the Borrower or, if
         such asset shall have been the subject of a relatively contemporaneous
         appraisal by an independent third party appraiser, the basic
         assumptions underlying which have not materially changed since its
         date, the value set forth in such appraisal and (b) with respect to any
         marketable security at any date, the closing sale price of such
         security on the Business Day next preceding such date, as appearing in
         any published list of any national securities exchange or the NASDAQ
         Stock Market or, if there is no such closing sale price of such
         Security, the final price for the purchase of such Security at face
         value quoted on such business day by a financial institution of
         recognized standing regularly dealing in securities of such type and
         selected by the Administrative Agent.

                  "FCC": the Federal Communications Commission (or any
         successor).

                  "FCC LICENSES": any licenses, permits and authorizations
         issued by the FCC for the operation of stations.

                  "FEDERAL FUNDS EFFECTIVE RATE": for any day, the weighted
         average 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 which is a Business Day, the average of the quotations for
         the day of such transactions received by the Administrative Agent from
         three federal funds brokers of recognized standing selected by it.

                  "FEE LETTER": the Senior Secured Credit Facilities Fee Letter,
         dated as of October 8, 2003, among the Borrower, the Administrative
         Agent, the Arranger, the Co-Documentation Agents, Merrill Lynch Capital
         Corporation and Deutsche Bank Trust Company Americas as the same may be
         amended, supplemented, replaced or otherwise modified from time to time
         in accordance with this Agreement.

                  "FOREIGN SUBSIDIARY": any Subsidiary of the Borrower that is
         not a Domestic Subsidiary.

                  "FQ1", "FQ2", "FQ3", and "FQ4": when used with a numerical
         year designation, mean the first, second, third or fourth fiscal
         quarters, respectively, of such fiscal year of the Borrower (e.g., "FQ1
         in 2004" means the first fiscal quarter, ending on March 31, 2004, of
         the Borrower's fiscal year 2004, which ends on December 31, 2004).

                  "FUNDED DEBT": as to any Person, all Indebtedness of such
         Person required under GAAP to be shown as or reflected in the
         liabilities on its balance sheet, to the extent required under GAAP to
         be shown as or reflected in such liabilities, that matures more than
         one year from the date of its creation or matures within one year from
         such date but is renewable or extendible, at the option of such Person,
         to a date more than one year from such date or arises under a revolving
         credit or similar agreement that obligates the lender or lenders to
         extend credit during a period of more than one year from such date,
         including all current maturities and current sinking fund

                                      -10-
<PAGE>

         payments in respect of such Indebtedness whether or not required to be
         paid within one year from the date of its creation and, in the case of
         the Borrower, Indebtedness in respect of the Loans.

                  "FUNDING OFFICE": the office specified from time to time by
         the Administrative Agent as its funding office by notice to the
         Borrower and the Lenders.

                  "GAAP": generally accepted accounting principles in the United
         States of America as in effect from time to time, except that for
         purposes of Section 7.1, GAAP shall be determined on the basis of such
         principles in effect on the date hereof and consistent with those used
         in the preparation of the most recent audited financial statements
         delivered pursuant to Section 4.1(b).

                  "GOVERNING DOCUMENTS": collectively, as to any Person, the
         articles or certificate of incorporation and bylaws, any shareholders
         agreement, certificate of formation, limited liability company
         agreement, partnership agreement or other formation or constituent
         documents of such Person.

                  "GOVERNMENTAL AUTHORITY": any nation or government, any state
         or other political subdivision thereof and any entity exercising
         executive, legislative, judicial, regulatory or administrative
         functions of or pertaining to government.

                  "GRANTOR": each signatory to the Guarantee and Collateral
         Agreement (together with any other entity that may become a party to
         the Guarantee and Collateral Agreement as provided therein).

                  "GRID EFFECTIVE DATE": the date of delivery to the
         Administrative Agent of the Borrower's financial statements for the
         second fiscal quarter that ends following the Closing Date.

                  "GUARANTEE AND COLLATERAL AGREEMENT": the Guarantee and
         Collateral Agreement to be executed and delivered by the Borrower and
         each Subsidiary Guarantor, substantially in the form of Exhibit B, as
         the same may be amended, supplemented, replaced or otherwise modified
         from time to time in accordance with this Agreement.

                  "GUARANTEE OBLIGATION": as to any Person (the "GUARANTEEING
         PERSON"), any obligation of (a) the guaranteeing person or (b) another
         Person (including any bank under any letter of credit) to induce the
         creation of which the guaranteeing person has issued a reimbursement,
         counterindemnity or similar obligation, in either case guaranteeing or
         in effect guaranteeing any Indebtedness, leases, dividends or other
         obligations (the "PRIMARY OBLIGATIONS") of any other third Person (the
         "PRIMARY OBLIGOR") in any manner, whether directly or indirectly,
         including any obligation of the guaranteeing person, whether or not
         contingent, (i) to purchase any such primary obligation or any Property
         constituting direct or indirect security therefor, (ii) to advance or
         supply funds (1) for the purchase or payment of any such primary
         obligation or (2) to maintain working capital or equity capital of the
         primary obligor or otherwise to maintain the net worth or solvency of
         the primary obligor, (iii) to purchase Property, securities or services
         primarily for the purpose of assuring the owner of any such primary
         obligation of the ability of the primary obligor to make payment of
         such primary obligation or (iv) otherwise to assure or hold harmless
         the owner of any such primary obligation against loss in respect
         thereof; PROVIDED, HOWEVER, that the term "Guarantee Obligation" shall
         not include endorsements of instruments for deposit or collection in
         the ordinary course of business. The amount of any Guarantee Obligation
         of any guaranteeing person shall be deemed to be the lower of (a) an
         amount equal to the stated or determinable amount of the primary
         obligation in respect of which such Guarantee Obligation is made and
         (b) the maximum amount for which such guaranteeing person may be liable
         pursuant to

                                      -11-
<PAGE>

         the terms of the instrument embodying such Guarantee Obligation, unless
         such primary obligation and the maximum amount for which such
         guaranteeing person may be liable are not stated or determinable, in
         which case the amount of such Guarantee Obligation shall be such
         guaranteeing person's maximum reasonably anticipated liability in
         respect thereof as determined by the Borrower in good faith.

                  "HEDGE AGREEMENTS": all interest rate swaps, caps or collar
         agreements or similar arrangements entered into by the Borrower or any
         of its Subsidiaries providing for protection against fluctuations in
         interest rates or currency exchange rates or the exchange of nominal
         interest obligations, either generally or under specific contingencies,
         as each may be amended, supplemented, replaced or otherwise modified
         from time to time in accordance with this Agreement.

                  "INDEBTEDNESS": of any Person at any date, without
         duplication, (a) all indebtedness of such Person for borrowed money,
         (b) all obligations of such Person, whether or not contingent, for the
         deferred purchase price of Property or services (other than trade
         payables incurred in the ordinary course of such Person's business),
         (c) all obligations of such Person evidenced by notes, bonds,
         debentures or other similar instruments, (d) all indebtedness created
         or arising under any conditional sale or other title retention
         agreement with respect to Property acquired by such Person (even though
         the rights and remedies of the seller or lender under such agreement in
         the event of default are limited to repossession or sale of such
         Property), (e) all Capital Lease Obligations of such Person, (f) all
         obligations of such Person, contingent or otherwise, as an account
         party under acceptance, letter of credit or similar facilities, (g) all
         obligations of such Person, contingent or otherwise, to purchase,
         redeem, retire or otherwise acquire for value any Disqualified Stock of
         such Person, (h) all Guarantee Obligations of such Person in respect of
         obligations of the kind referred to in clauses (a) through (g) above;
         (i) all obligations of the kind referred to in clauses (a) through (h)
         above secured by (or for which the holder of such obligation has an
         existing right, contingent or otherwise, to be secured by) any Lien on
         Property (including accounts and contract rights) owned by such Person,
         whether or not such Person has assumed or become liable for the payment
         of such obligation, but if any such obligation is non-recourse to such
         Person, then the amount of such obligation shall be deemed to be the
         lesser of the fair market value of such Property and the amount of the
         obligation so secured, and (j) for the purposes of Section 8(e) only,
         all obligations of such Person in respect of Hedge Agreements. For the
         avoidance of doubt, "Indebtedness" shall not include any Capital Stock
         (other than Disqualified Stock) or any liabilities or obligations in
         respect of Capital Stock (other than Disqualified Stock).

                  "INDEMNIFIED LIABILITIES": as defined in Section 10.5.

                  "INDEMNITEE": as defined in Section 10.5.

                  "INSOLVENCY": with respect to any Multiemployer Plan, the
         condition that such Multiemployer Plan is insolvent within the meaning
         of Section 4245 of ERISA.

                  "INSOLVENT": pertaining to a condition of Insolvency.

                  "INSURANCE REQUIREMENTS": all material terms of any insurance
         policy required pursuant to this Agreement or any Security Document.

                  "INTELLECTUAL PROPERTY": the collective reference to all
         rights, priorities and privileges relating to intellectual property,
         whether arising under United States, state, multinational or

                                      -12-
<PAGE>

         foreign laws or otherwise, including copyrights, patents, trademarks,
         service-marks, technology, know-how and processes, recipes, formulas,
         trade secrets, or licenses (under which the applicable Person is
         licensor or licensee) relating to any of the foregoing and all rights
         to sue at law or in equity for any infringement or other impairment
         thereof, including the right to receive all proceeds and damages
         therefrom.

                  "INTELLECTUAL PROPERTY COLLATERAL": all Intellectual Property
         of the Loan Parties, now owned or hereafter acquired, upon which a Lien
         is purported to be created by the Intellectual Property Security
         Agreements or the Guarantee and Collateral Agreement.

                  "INTELLECTUAL PROPERTY SECURITY AGREEMENTS": as defined in the
         Guarantee and Collateral Agreement.

                  "INTEREST PAYMENT DATE" (a) as to any Base Rate Loan, the last
         day of each March, June, September and December to occur while such
         Loan is outstanding and the final maturity date of such Loan, (b) as to
         any Eurodollar Loan having an Interest Period of three months or less,
         the last day of such Interest Period, (c) as to any Eurodollar Loan
         having an Interest Period longer than three months, each day that is
         three months, or a whole multiple thereof, after the first day of such
         Interest Period and the last day of such Interest Period and (d) as to
         any Loan (other than any Revolving Credit Loan that is a Base Rate Loan
         (unless all Revolving Credit Loans are being repaid in full in
         immediately available funds and the Revolving Credit Commitments
         terminated) and any Swing Line Loan), the date of any repayment or
         prepayment made in respect thereof.

                  "INTEREST PERIOD": as to any Eurodollar Loan, (a) initially,
         the period commencing on the borrowing or conversion date, as the case
         may be, with respect to such Eurodollar Loan and ending one, two, three
         or six months thereafter, as selected by the Borrower in its Notice of
         Borrowing or notice of conversion, as the case may be, given with
         respect thereto; and (b) thereafter, each period commencing on the last
         day of the next preceding Interest Period applicable to such Eurodollar
         Loan and ending one, two, three or six months thereafter, as selected
         by the Borrower by irrevocable notice to the Administrative Agent not
         less than three Business Days prior to the last day of the then current
         Interest Period with respect thereto; PROVIDED that all of the
         foregoing provisions relating to Interest Periods are subject to the
         following:

                           (i) if any Interest Period would otherwise end on a
                  day that is not a Business Day, such Interest Period shall be
                  extended to the next succeeding Business Day unless the result
                  of such extension would be to carry such Interest Period into
                  another calendar month in which event such Interest Period
                  shall end on the immediately preceding Business Day;

                           (ii) any Interest Period that would otherwise extend
                  beyond the Revolving Credit Termination Date or beyond Term
                  Loan Maturity Date shall end on the Revolving Credit
                  Termination Date or the Term Loan Maturity Date, as
                  applicable;

                           (iii) any Interest Period that begins on the last
                  Business Day of a calendar month (or on a day for which there
                  is no numerically corresponding day in the calendar month at
                  the end of such Interest Period) shall end on the last
                  Business Day of a calendar month; and

                           (iv) the Borrower shall select Interest Periods so as
                  not to require a payment or prepayment of any Eurodollar Loan
                  during an Interest Period for such Loan.

                                      -13-
<PAGE>

                  "INVESTMENTS": as defined in Section 7.8.

                  "ISSUING LENDER": any Revolving Credit Lender that is
         appointed by the Borrower, with the consent of the Administrative
         Agent, to act as Issuing Lender under this Agreement, if such Revolving
         Credit Lender is willing to act as such and has confirmed in writing
         its acceptance of such appointment.

                  "KXOL ACQUISITION": the acquisition of radio station KXOL-FM
         on the terms and subject to the conditions set forth in the KXOL
         Acquisition Agreement.

                  "KXOL ACQUISITION AGREEMENT": the Asset Purchase Agreement,
         dated November 2, 2000, between the International Church of the
         FourSquare Gospel and the Borrower, as amended through the Second
         Amendment thereto, dated February 8, 2002.

                  "L/C COMMITMENT": at any time, the lesser of (a) $2,500,000
         and (b) the Total Revolving Credit Commitments at such time.

                  "L/C FEE PAYMENT DATE": the last day of each March, June,
         September and December and the last day of the Revolving Credit
         Commitment Period.

                  "L/C OBLIGATIONS": at any time, an amount equal to the sum of
         (a) the aggregate then undrawn and unexpired amount of the then
         outstanding Letters of Credit and (b) the aggregate amount of drawings
         under Letters of Credit that have not then been reimbursed pursuant to
         Section 3.5.

                  "L/C PARTICIPANTS": the collective reference to all the
         Revolving Credit Lenders other than the Issuing Lender.

                  "LEASE": any lease of real or personal property under which
         any Grantor is the lessee.

                  "LEHMAN ENTITY": any of Lehman Commercial Paper Inc. or any of
         its affiliates.

                  "LENDER ADDENDUM": with respect to any initial Lender, a
         Lender Addendum, substantially in the form of Exhibit C, to be executed
         and delivered by such Lender on the Closing Date as provided in Section
         10.17.

                  "LENDERS": as defined in the preamble hereto and includes the
         Issuing Lender.

                  "LETTERS OF CREDIT": as defined in Section 3.1(a).

                  "LIEN": any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, encumbrance, lien (statutory or other), charge or
         other security interest or any preference, priority or other security
         agreement or preferential arrangement of any kind or nature whatsoever
         (including any conditional sale or other title retention agreement and
         any capital lease having substantially the same economic effect as any
         of the foregoing).

                  "LOAN": any loan made by any Lender pursuant to this
         Agreement.

                  "LOAN DOCUMENTS": this Agreement, the Security Documents, the
         Fee Letter, the Applications and the Notes.

                                      -14-
<PAGE>

                  "LOAN PARTIES": the Borrower and each Subsidiary of the
         Borrower that is a party to a Loan Document (including pursuant to
         Section 6.10).

                  "MAJORITY FACILITY LENDERS": with respect to any Facility, the
         holders of more than 50% of the sum of (a) the aggregate unfunded
         Commitments in respect of such Facility PLUS (b) the aggregate unpaid
         principal amount of the Loans or, in the case of the Revolving Credit
         Facility, Total Revolving Extensions of Credit outstanding under such
         Facility.

                  "MANAGEMENT EQUITY": common stock, or options or warrants to
         acquire common stock, of the Borrower, granted to any present or former
         director, officer or employee of the Borrower pursuant to an employee
         stock incentive program approved by the Board of Directors of the
         Borrower.

                  "MATERIAL ACTION": as to any Broadcast License Subsidiary, (i)
         to consolidate or merge such Broadcast License Subsidiary with or into
         any Person, or sell all or substantially all of the assets of such
         Broadcast License Subsidiary, or to institute proceedings to have such
         Broadcast License Subsidiary be adjudicated bankrupt or insolvent, or
         consent to the institution of bankruptcy or insolvency proceedings
         against such Broadcast License Subsidiary or file a petition seeking,
         or consent to, reorganization or relief with respect to such Broadcast
         License Subsidiary under any applicable federal or state law relating
         to bankruptcy, or consent to the appointment of a receiver, liquidator,
         assignee, trustee, sequestrator (or other similar official) of such
         Broadcast License Subsidiary or a substantial part of its property, or
         make any assignment for the benefit of creditors of such Broadcast
         License Subsidiary, or admit in writing such Broadcast License
         Subsidiary's inability to pay its debts generally as they become due,
         or, to the fullest extent permitted by law, take action in furtherance
         of any such action, or dissolve or liquidate such Broadcast License
         Subsidiary, or (ii) to take any other action that would cause or permit
         the dissolution of such Broadcast License Subsidiary whether pursuant
         to the Governing Documents of such Broadcast License Subsidiary,
         judicial dissolution, applicable law or otherwise.

                  "MATERIAL ADVERSE EFFECT": a material adverse effect on or
         affecting (a) the business, assets, property, condition (financial or
         otherwise) or prospects of the Loan Parties taken as a whole, (b) the
         validity or enforceability of this Agreement or any of the other Loan
         Documents, (c) the validity, enforceability or priority of the Liens
         purported to be created by the Security Documents, or (d) the rights or
         remedies of any Secured Party hereunder or under any of the other Loan
         Documents.

                  "MATERIAL ENVIRONMENTAL AMOUNT": an amount or amounts payable
         by the Borrower and/or any of its Subsidiaries, in the aggregate in
         excess of $5,000,000, for: costs to comply with any Environmental Law;
         costs of any investigation, and any remediation, of any Material of
         Environmental Concern; and compensatory damages (including, without
         limitation damages to natural resources), punitive damages, fines, and
         penalties pursuant to any Environmental Law.

                  "MATERIALS OF ENVIRONMENTAL CONCERN": any gasoline or
         petroleum (including crude oil or any fraction thereof) or petroleum
         products, polychlorinated biphenyls, urea-formaldehyde insulation,
         asbestos, pollutants, contaminants, radioactivity, and any other
         substances or forces of any kind, whether or not any such substance or
         force is defined as hazardous or toxic under any Environmental Law,
         that is regulated pursuant to or could give rise to liability under any
         Environmental Law.

                  "MORTGAGE": means each of the mortgages, deeds of trust,
         leasehold mortgages, leasehold deeds of trust, collateral assignments
         of leases or other real estate security documents delivered

                                      -15-
<PAGE>

         by any Loan Party to the Administrative Agent on behalf of itself and
         the Lenders with respect to any real property, in each case, as
         amended, modified or supplemented from time to time.

                  "MULTIEMPLOYER PLAN": a Plan that is a multiemployer plan as
         defined in Section 3(37) or 4001(a)(3) of ERISA.

                  "NET CASH PROCEEDS": (a) in connection with any Asset Sale or
         any Recovery Event, the proceeds thereof in the form of cash and Cash
         Equivalents (including any such proceeds received by way of deferred
         payment of principal pursuant to a note or installment receivable or
         purchase price adjustment receivable or otherwise, but only as and when
         received) of such Asset Sale or Recovery Event, net of reasonable and
         customary attorneys' fees, accountants' fees, investment banking fees,
         amounts required to be applied to the repayment of Indebtedness secured
         by a Lien expressly permitted hereunder on any asset that is the
         subject of such Asset Sale or Recovery Event (other than any Lien
         pursuant to a Security Document) and other reasonable and customary
         fees, commissions and expenses (including severance costs), in each
         case, to the extent actually incurred in connection therewith and net
         of taxes paid or reasonably estimated to be payable as a result thereof
         (after taking into account any available tax credits or deductions and
         any tax sharing arrangements) and (b) in connection with any issuance
         or sale of equity securities or debt securities or instruments or the
         incurrence of loans or any other indebtedness, the cash proceeds
         received from such issuance or incurrence, net of reasonable and
         customary attorneys' fees, investment banking fees, accountants' fees,
         underwriting discounts and commissions and other reasonable and
         customary fees and expenses, in each case, to the extent actually
         incurred in connection therewith.

                  "NON-EXCLUDED TAXES": as defined in Section 2.20(a).

                  "NON-U.S. LENDER": as defined in Section 2.20(f).

                  "NOTES": the collective reference to the Revolving Credit
         Notes, the Term Notes and the Swing Line Notes, if any, evidencing
         Loans.

                  "NOTICE OF BORROWING": a notice duly executed by a Responsible
         Officer of the Borrower substantially in the form of Exhibit D.

                  "OBLIGATIONS": the unpaid principal of and interest on
         (including interest accruing after the maturity of the Loans and
         Reimbursement Obligations and interest accruing after the filing of any
         petition in bankruptcy, or the commencement of any insolvency,
         reorganization or like proceeding, relating to any Loan Party, whether
         or not a claim for post-filing or post-petition interest is allowed in
         such proceeding) the Loans and all other obligations and liabilities of
         the Loan Parties to the Arranger, to any Agent, to any Lender (or, in
         the case of Specified Hedge Agreements, any affiliate of any Lender) or
         to any Indemnitee, whether direct or indirect, absolute or contingent,
         due or to become due, or now existing or hereafter incurred, which may
         arise under, out of, or in connection with, this Agreement, any other
         Loan Document, the Letters of Credit, any Specified Hedge Agreement or
         any other document made, delivered or given in connection herewith or
         therewith, whether on account of principal, interest, reimbursement
         obligations, fees, indemnities, costs, expenses (including all fees,
         charges and disbursements of counsel to the Arranger, to any Agent or
         to any Lender that are required to be paid by any Loan Party pursuant
         hereto or to any other Loan Document) or otherwise; PROVIDED that (a)
         Obligations of the Borrower or any other Loan Party under any Specified
         Hedge Agreement shall be secured and guaranteed pursuant to the
         Security Documents only to the extent that, and for so long as, the
         other Obligations are so secured and guaranteed and (b) any release of
         Collateral or Subsidiary

                                      -16-
<PAGE>

         Guarantors effected in the manner permitted by this Agreement shall
         require the consent only of the Lenders as set forth in Section 10.1.

                  "OTHER TAXES": any and all present or future stamp or
         documentary taxes or any other excise or property taxes, charges or
         similar levies arising from any payment made hereunder or from the
         execution, delivery or enforcement of, or otherwise with respect to,
         this Agreement or any other Loan Document.

                  "PARTICIPANT": as defined in Section 10.6(b).

                  "PATENT SECURITY AGREEMENT SUPPLEMENT": as defined in the
         Guarantee and Collateral Agreement.

                  "PAYMENT AMOUNT": as defined in Section 3.5.

                  "PAYMENT OFFICE": the office of the Administrative Agent
         specified in Section 10.2 or as otherwise specified from time to time
         by the Administrative Agent as its payment office by notice to the
         Borrower and the Lenders.

                  "PBGC": the Pension Benefit Guaranty Corporation established
         pursuant to Subtitle A of Title IV of ERISA (or any successor).

                  "PERMITS": the collective reference to (a) Environmental
         Permits and (b) any and all other franchises, licenses, leases,
         permits, approvals, notifications, certifications, registrations,
         authorizations, exemptions, qualifications, easements, rights of way,
         Liens and other rights, privileges and approvals required under any
         Requirement of Law.

                  "PERMITTED ACQUISITIONS": Any Acquisition of a Permitted
         Business that meets the following requirements at the time such
         Acquisition is consummated:

                  (i) no Default exists or would exist after giving effect to
         such Acquisition and each representation and warranty made by any Loan
         Party in or pursuant to the Loan Documents shall be true and correct on
         and as of such date as if made on and as of such date and immediately
         after giving effect to such Acquisition;

                  (ii) the Borrower has delivered to the Administrative Agent a
         certificate of a Responsible Officer stating that, on a pro forma
         basis, after giving effect to such Acquisition and any incurrence or
         assumption of Indebtedness in connection therewith and the application
         of the proceeds thereof as if they had occurred on the first day of the
         12-month period ending on the last day of the fiscal quarter of the
         Borrower then most recently ended, the Borrower would have been in
         compliance, as of the last day of such fiscal quarter, with each of the
         financial condition covenants set forth in Section 7.1, accompanied by
         (A) historic financial statements for the Acquired Business in such
         Acquisition that either are audited by an accounting firm of recognized
         standing or reasonably satisfactory to the Administrative Agent
         covering such 12-month period and, if available, the preceding two
         years and (B) an analysis showing the calculations of such pro forma
         financial covenant compliance in reasonable detail;

                  (iii) the Borrower delivers to the Administrative Agent,
         promptly after consummation of such Acquisition, a signed counterpart
         of each legal opinion, if any, delivered in connection with such
         Acquisition, accompanied by a reliance letter in favor of the
         Administrative Agent and the Lenders;

                                      -17-
<PAGE>

                  (iv) if the Acquired Business in such Acquisition consists of
         or includes any business other than the Spanish language radio
         broadcast business in the United States or Puerto Rico, (x) the
         Administrative Agent and Lenders have been provided, at least 10
         Business Days prior to the consummation of such Acquisition, (A)
         written notice of such Acquisition, (B) copies of all Acquisition
         Documentation for such Acquisition and (C) such financial statements,
         information, documents and materials as the Administrative Agent or
         Required Lenders may request in order to conduct and complete a
         business, financial and legal due diligence review satisfactory to the
         Administrative Agent and Required Lenders of such Acquisition, of the
         Acquired Business in such Acquisition and of the terms and conditions
         of the Acquisition Documentation for such Acquisition and (y) the
         Borrower has not been notified, within 10 Business Days after all
         financial statements, information, documents and materials so requested
         were provided, that the Administrative Agent or Required Lenders are
         not satisfied with the results of their diligence review; and

                  (v) (x) the consideration for such acquisition consists
         entirely of Capital Stock or is paid with the proceeds of Capital Stock
         (in each case, other than Disqualified Stock) or (y) (1) after giving
         effect to the consummation of such Acquisition, and the funding of any
         Loans or the incurrence of any other Indebtedness in connection
         therewith the sum of (A) the amount of Total Revolving Commitments that
         on a pro forma basis (assuming that the Acquisition and the financing
         thereof occurred on the last day of the fiscal quarter of the Borrower
         then most recently ended) would be available to the Borrower in
         accordance with the conditions to borrowing hereunder, including
         Section 5.2(c), plus (B) the Borrower's and the Guarantors' cash and
         Cash Equivalents, shall be at least $30,000,000 and (2) either (A) the
         consideration for such Acquisition (including assumption of
         Indebtedness but excluding consideration paid with the proceeds of
         Capital Stock or constituting Capital Stock (in each case, other than
         Disqualified Stock) and excluding consideration paid with Net Cash
         Proceeds constituting a Reinvestment Deferred Amount in accordance with
         the terms of this Agreement) (the non-excluded portion of such
         consideration, "ACQUISITION CONSIDERATION") does not exceed, when added
         to all Acquisition Consideration previously paid in such fiscal year,
         $50,000,000, or when added to all other Acquisition Consideration
         previously paid since the Closing Date, $100,000,000, or (B) on a pro
         forma basis after giving effect to the Acquisition (as though the
         Acquisition and any Loans or other Indebtedness incurred in connection
         therewith occurred on the first day of the most recently reported
         period of twelve consecutive months), Consolidated Interest Coverage
         Ratio for such period is not less than 1.25 to 1.00.

                  "PERMITTED BUSINESS": the media business and any business
         reasonably similar, complementary, ancillary or related thereto,
         including the operation of Latin music websites and internet portals,
         and any activity reasonably incidental thereto.

                  "PERMITTED GUARANTOR": any Subsidiary Guarantor that as of the
         Closing Date has guaranteed the Senior Subordinated Notes or that after
         the Closing Date has become required to guarantee the Senior
         Subordinated Notes pursuant to the Senior Subordinated Note Indenture
         as in effect on the Closing Date or as subsequently amended with the
         prior written consent of the Required Lenders.

                  "PERMITTED INVESTORS": in any combination, Raul Alarcon, Jr.
         and Pablo Raul Alarcon, Sr. and any corporation, trust, partnership,
         company or other entity more than 50% of the beneficial interests in
         which are owned, in any combination, by Raul Alarcon, Jr. and Pablo
         Raul Alarcon, Sr.

                                      -18-
<PAGE>

                  "PERMITTED REFINANCING": the incurrence by Borrower or any of
         its Subsidiaries of Indebtedness, the proceeds of which are used to
         redeem or repurchase the Senior Subordinated Notes so long as (1) in
         the event such Indebtedness constitutes Subordinated Debt, (a) except
         as provided in clause (1)(b) below, the terms of such indebtedness
         (including terms of subordination) are substantially similar to those
         of the Senior Subordinated Notes (or more favorable to the Lenders) and
         (b) such Indebtedness matures after, and there is no scheduled
         mandatory redemption or prepayment of principal of such Indebtedness
         prior to, the date six (6) months following the Term Loan Maturity Date
         or (2) in the event that such Indebtedness does not constitute
         Subordinated Debt, (a) such Indebtedness is unsecured and is upon terms
         and conditions and documentation acceptable in all respects to the
         Administrative Agent, (b) after giving effect to the incurrence of such
         Indebtedness on a pro forma basis (assuming that such Indebtedness was
         incurred on the first day of the most recently completed period of
         twelve consecutive months) the Consolidated Senior Debt Ratio is not
         more than 5.0:1.0 and (c) such Indebtedness matures after, and there is
         no scheduled mandatory redemption or prepayment of principal of such
         Indebtedness prior to, the date six (6) months following the Term Loan
         Maturity Date.

                  "PERSON": an individual, partnership, corporation, limited
         liability company, business trust, joint stock company, trust,
         unincorporated association, joint venture, Governmental Authority or
         other entity of whatever nature.

                  "PLAN": at a particular time, any employee benefit plan that
         is covered by ERISA and that the Borrower or any Commonly Controlled
         Entity maintains, administers, contributes to or is required to
         contribute to or under which the Borrower or any Commonly Controlled
         Entity could incur any liability.

                  "PRICING GRID": the pricing grid attached hereto as Annex A.

                  "PREFERRED STOCK": $75,000,000 in aggregate original
         liquidation preference of the Borrower's 10 3/4% Series A Cumulative
         Exchangeable Redeemable Preferred Stock, and any shares of Borrower's
         10 3/4% Series B Cumulative Exchangeable Preferred Stock issued in
         exchange for such Series A Preferred Stock.

                  "PROCEEDS": as defined in the Guarantee and Collateral
         Agreement.

                  "PRO FORMA BALANCE SHEET": as defined in Section 4.1(a).

                  "PROJECTIONS": as defined in Section 6.2(c).

                  "PROPERTY": any right or interest in or to property of any
         kind whatsoever, whether real, personal or mixed and whether tangible
         or intangible, including Capital Stock.

                  "PUERTO RICO INTERCOMPANY DEBT": Indebtedness that (a) was
         incurred or assumed by Spanish Broadcasting System of Puerto Rico,
         Inc., a Delaware corporation, or any of its Subsidiaries and (b) is
         outstanding to the Borrower or a Wholly Owned Subsidiary Guarantor.

                  "QUALIFIED SUPPORTING LETTER OF CREDIT" means, with respect to
         any Letter of Credit, a back-to-back letter of credit, issued by a bank
         acceptable to the Issuing Lender of such Letter of Credit and to the
         Administrative Agent and in form and substance acceptable to such
         Issuing Lender and the Administrative Agent, and as to which such
         Issuing Lender is the beneficiary and

                                      -19-
<PAGE>

         in an amount equal to not less than 105% of the undrawn and available
         amount of such Letter of Credit at the time of issuance of such letter
         of credit.

                  "RECOVERY EVENT": any settlement of or payment in respect of
         any property or casualty insurance claim or any condemnation proceeding
         relating to any asset of the Borrower or any of its Subsidiaries.

                  "REFUNDED SWING LINE LOANS": as defined in Section 2.7(b).

                  "REFUNDING DATE": as defined in Section 2.7(c).

                  "REGISTER": as defined in Section 10.6(d).

                  "REGULATION D": Regulation D of the Board as in effect from
         time to time (and any successor to all or a portion thereof).

                  "REGULATION T": Regulation T of the Board as in effect from
         time to time (and any successor to all or a portion thereof).

                  "REGULATION U": Regulation U of the Board as in effect from
         time to time (and any successor to all or a portion thereof).

                  "REGULATION X": Regulation X of the Board as in effect from
         time to time (and any successor to all or a portion thereof).

                  "REIMBURSEMENT OBLIGATION": the obligation of the Borrower to
         reimburse the Issuing Lender pursuant to Section 3.5 for amounts drawn
         under Letters of Credit.

                  "REINVESTMENT DEFERRED AMOUNT": with respect to any
         Reinvestment Event, the aggregate Net Cash Proceeds received by the
         Borrower or any of its Subsidiaries in connection therewith that are
         not applied to prepay the Term Loans or reduce the Revolving Credit
         Commitments pursuant to Section 2.12(b) as a result of the delivery of
         a Reinvestment Notice.

                  "REINVESTMENT EVENT": any Asset Sale or Recovery Event in
         respect of which the Borrower has delivered a Reinvestment Notice.

                  "REINVESTMENT NOTICE": a written notice executed by a
         Responsible Officer stating that no Default has occurred and is
         continuing and that the Borrower (directly or indirectly through a
         Wholly Owned Subsidiary) intends and expects to use all or a specified
         portion of the Net Cash Proceeds of an Asset Sale or Recovery Event to
         acquire assets (including the acquisition of Capital Stock or assets
         pursuant to a Permitted Acquisition) useful in its business or, in the
         case of a Recovery Event, repair assets to which such Recovery Event
         relates.

                  "REINVESTMENT PREPAYMENT AMOUNT": with respect to any
         Reinvestment Event, the Reinvestment Deferred Amount relating thereto
         less any amount expended prior to the relevant Reinvestment Prepayment
         Date to acquire assets (including the acquisition of Capital Stock or
         assets pursuant to a Permitted Acquisition) useful in the Borrower's
         business or, in the case of a Recovery Event, repair assets to which
         such Recovery Event relates.

                  "REINVESTMENT PREPAYMENT DATE": with respect to any
         Reinvestment Event, the earlier of (a) the date occurring 365 days
         after such Reinvestment Event and (b) the date on which the

                                      -20-
<PAGE>

         Borrower shall have determined not to, or shall have otherwise ceased
         to, acquire assets (including the acquisition of Capital Stock or
         assets pursuant to a Permitted Acquisition) useful in the Borrower's
         business or, in the case of a Recovery Event, repair assets to which
         such Recovery Event relates, in any such case with all or any portion
         of the relevant Reinvestment Deferred Amount.

                  "RELATED FUND": with respect to any Lender that is a fund that
         invests in loans, any other fund that is managed by the same investment
         advisor as such Lender or by an Affiliate of such Lender or investment
         advisor.

                  "RELATED PERSON": as to each of the Arranger, the Agents and
         the Lenders, each of its officers, directors, stockholders, members,
         partners, employees, agents, attorneys and other advisors, controlling
         persons and Affiliates.

                  "REORGANIZATION": with respect to any Multiemployer Plan, the
         condition that such plan is in reorganization within the meaning of
         Section 4241 of ERISA.

                  "REPORTABLE EVENT": any of the events set forth in Section
         4043(c) of ERISA, other than those events as to which the thirty day
         notice period is waived under subsections .27, .28, .29, .30, .31, .32,
         .34 or .35 of PBGC Reg. Section 4043.

                  "REQUIRED LENDERS": at any time, the holders of more than 50%
         of (a) until the Closing Date, the Commitments and (b) thereafter, the
         sum of (i) the aggregate unpaid principal amount of the Term Loans then
         outstanding and (ii) the Total Revolving Credit Commitments then in
         effect or, if the Revolving Credit Commitments have terminated, the
         Total Revolving Extensions of Credit then outstanding.

                  "REQUIRED PREPAYMENT LENDERS": the Majority Facility Lenders
         in respect of each Facility.

                  "REQUIREMENT OF LAW": as to any Person, the Governing
         Documents of such Person, and any law, treaty, rule or regulation or
         determination of an arbitrator or a court or other Governmental
         Authority, in each case applicable to or binding upon such Person or
         any of its Property or to which such Person or any of its Property is
         subject.

                  "RESPONSIBLE OFFICER": as to any Person, the chief executive
         officer, president, chief financial officer or treasurer of such
         Person, but in any event, with respect to financial matters, the chief
         financial officer or treasurer of such Person. Unless otherwise
         qualified, all references to a "Responsible Officer" shall refer to a
         Responsible Officer of the Borrower.

                  "RESTRICTED PAYMENTS": as defined in Section 7.6.

                  "REVOLVING CREDIT COMMITMENT": as to any Lender, the
         obligation of such Lender, if any, to make Revolving Credit Loans
         and/or participate in Swing Line Loans and Letters of Credit, in an
         aggregate principal and/or face amount not to exceed the amount set
         forth under the heading "Revolving Credit Commitment" opposite such
         Lender's name on Schedule 1 to the Lender Addendum delivered by such
         Lender, or, as the case may be, in the Assignment and Acceptance
         pursuant to which such Lender became a party hereto, as the same may be
         changed from time to time pursuant to the terms hereof. The original
         aggregate principal amount of the Revolving Credit Commitments is
         $10,000,000.

                                      -21-
<PAGE>

                  "REVOLVING CREDIT COMMITMENT PERIOD": the period from and
         including the Closing Date to the Revolving Credit Termination Date.

                  "REVOLVING CREDIT LENDER": each Lender that has a Revolving
         Credit Commitment or that is the holder of Revolving Credit Loans.

                  "REVOLVING CREDIT LOANS": as defined in Section 2.4(a).

                  "REVOLVING CREDIT NOTES": as defined in Section 2.8(e).

                  "REVOLVING CREDIT PERCENTAGE": as to any Revolving Credit
         Lender at any time, the percentage that such Lender's Revolving Credit
         Commitment then constitutes of the Total Revolving Credit Commitments
         (or, at any time after the Revolving Credit Commitments have
         terminated, the percentage which the aggregate principal amount of such
         Lender's Revolving Extensions of Credit then outstanding constitutes of
         the aggregate principal amount of the Total Revolving Extensions of
         Credit then outstanding).

                  "REVOLVING CREDIT TERMINATION DATE": the earlier of (a) the
         date that is five (5) years following the Closing Date, (b) the date of
         termination of the Revolving Credit Lenders' obligations to make
         Revolving Credit Loans pursuant to the last paragraph of Section 8 and
         (c) the date of (i) the payment in full in cash by the Borrower of any
         outstanding Revolving Credit Loans, (ii) the cancellation and return
         (or stand-by guarantee) of all Letters of Credit and (iii) the
         permanent reduction of all Revolving Credit Commitments to zero Dollars
         ($0) pursuant to Section 2.10.

                  "REVOLVING EXTENSIONS OF CREDIT": as to any Revolving Credit
         Lender at any time, an amount equal to the sum of (a) the aggregate
         principal amount of all Revolving Credit Loans then outstanding to such
         Lender, (b) such Lender's Revolving Credit Percentage of the L/C
         Obligations then outstanding and (c) such Lender's Revolving Credit
         Percentage of the aggregate principal amount of Swing Line Loans then
         outstanding.

                  "SA STATIONS": collectively, radio stations KLEY-FM (San
         Antonio, Texas) and KSAH-AM (Universal City, Texas).

                  "SEC": the United States Securities and Exchange Commission
         (or successors thereto or an analogous Governmental Authority).

                  "SECURED PARTIES": collectively, the Arranger, the Agents, the
         Lenders, each Indemnitee and, with respect to any Specified Hedge
         Agreement, any affiliate of any Lender party thereto that has agreed to
         be bound by the provisions of Section 14.02 of the Guarantee and
         Collateral Agreement as if it were a party thereto and by the
         provisions of Section 9 hereof as if it were a Lender party hereto.

                  "SECURITY DOCUMENTS": the collective reference to the
         Guarantee and Collateral Agreement, the Mortgages, the Intellectual
         Property Security Agreements, the Control Agreements and all other
         pledge and security documents hereafter delivered to the Administrative
         Agent granting a Lien on any Property of any Person to secure the
         obligations and liabilities of any Loan Party under any Loan Document.

                  "SELLER INDEBTEDNESS": (a) Indebtedness incurred by the
         Borrower issued as purchase consideration to the seller in a Permitted
         Acquisition, PROVIDED that such Indebtedness shall (i) be

                                      -22-
<PAGE>

         in an aggregate principal amount which, when taken together with the
         aggregate principal amount of all other outstanding Seller Indebtedness
         incurred after the Closing Date, does not exceed $25,000,000 at any one
         time outstanding, (ii) be issued and payable and subordinated to the
         Obligations on terms acceptable to the Administrative Agent, (iii) in
         respect of which no payments of principal are due (including sinking
         fund payments, redemption or defeasance deposits or any required
         purchase) earlier than the date six months following the Term Loan
         Maturity Date and (iv) not bear interest payable in cash during the
         continuance of an Event of Default, and (b) any other Indebtedness
         incurred by the Borrower or any Subsidiary in connection with a
         Permitted Acquisition, if the amount and terms of such Indebtedness
         have been approved in writing by the Required Lenders.

                  "SENIOR SUBORDINATED NOTES": the unsecured 9% Senior
         Subordinated Notes due 2009 issued and outstanding under the Senior
         Subordinated Note Indenture.

                  "SENIOR SUBORDINATED NOTE INDENTURE": the Indenture dated as
         of June 8, 2001 between the Borrower and The Bank of New York, as
         Trustee, in connection with the Senior Subordinated Notes, as the same
         may be amended, supplemented, replaced or otherwise modified from time
         to time in accordance with this Agreement.

                  "SF STATION": radio station KPTI-FM (San Francisco,
         California).

                  "SINGLE EMPLOYER PLAN": any Plan that is covered by Title IV
         of ERISA, but which is not a Multiemployer Plan.

                  "SOLVENCY CERTIFICATE": the Solvency Certificate to be
         executed and delivered by the chief financial officer of the Borrower,
         substantially in the form of Exhibit E, which certificate shall address
         the Solvency of the Borrower and its Subsidiaries after giving effect
         to the consummation of the Facilities, the Preferred Stock issuance,
         the KXOL Acquisition and any other transactions contemplated by the
         Loan Documents.

                  "SOLVENT": when used with respect to any Person, as of any
         date of determination, (a) the amount of the "present fair saleable
         value" of the assets of such Person will, as of such date, exceed the
         amount of all "liabilities of such Person, contingent or otherwise", as
         of such date, as such quoted terms are determined in accordance with
         applicable federal and state laws governing determinations of the
         insolvency of debtors, (b) the present fair saleable value of the
         assets of such Person will, as of such date, be greater than the amount
         that will be required to pay the liability of such Person on its debts
         as such debts become absolute and matured, (c) such Person will not
         have, as of such date, an unreasonably small amount of capital with
         which to conduct its business and (d) such Person will be able to pay
         its debts as they mature; and the term "Solvency" shall have a
         correlative meaning. For purposes of this definition, (i) "debt" means
         liability on a "claim", and (ii) "claim" means any (x) right to
         payment, whether or not such a right is reduced to judgment,
         liquidated, unliquidated, fixed, contingent, matured, unmatured,
         disputed, undisputed, legal, equitable, secured or unsecured or (y)
         right to an equitable remedy for breach of performance if such breach
         gives rise to a right to payment, whether or not such right to an
         equitable remedy is reduced to judgment, fixed, contingent, matured or
         unmatured, disputed, undisputed, secured or unsecured.

                  "SPECIFIED CHANGE OF CONTROL": a "change of control" or
         similar event (howsoever defined) as defined in the Senior Subordinated
         Note Indenture or following issuance of any Exchange Subordinated Debt
         or any Indebtedness incurred in a Permitted Refinancing, in the
         indenture governing the Exchange Subordinated Debt or such
         Indebtedness, as applicable.

                                      -23-
<PAGE>

                  "SPECIFIED HEDGE AGREEMENT": any Hedge Agreement (a) entered
         into by (i) the Borrower or any of its Subsidiaries for the purpose of
         hedging the interest rate exposure in connection with indebtedness
         permitted under this Agreement and (ii) any Person who at the time of
         entering into such Hedge Agreement as a counter-party is a Lender or
         any affiliate thereof and (b) which has been designated by such Lender
         and the Borrower, by notice to the Administrative Agent not later than
         90 days after the execution and delivery thereof by the Borrower or
         such Subsidiary, as a Specified Hedge Agreement; PROVIDED that the
         designation of any Hedge Agreement as a Specified Hedge Agreement shall
         not create in favor of any Lender or affiliate thereof that is a party
         thereto any rights in connection with the management or release of any
         Collateral or of the obligations of any Guarantor under the Guarantee
         and Collateral Agreement.

                  "SUBORDINATED DEBT": any Indebtedness of the Borrower (a) that
         is not secured by any Lien upon any Property of the Borrower or any of
         its Subsidiaries, (b) that is issued and payable and subordinated to
         the Obligations on terms acceptable to the Administrative Agent and (c)
         in respect of which no payments of principal are due (including sinking
         fund payments, redemption or defeasance deposits or any required
         purchase) prior to the date six months following the Term Loan Maturity
         Date and in any event shall include the Senior Subordinated Notes and
         the Exchange Subordinated Debt.

                  "SUBSIDIARY": as to any Person, a corporation, partnership,
         limited liability company or other entity of which shares of stock or
         other ownership interests having ordinary voting power (other than
         stock or such other ownership interests having such power only by
         reason of the happening of a contingency) to elect a majority of the
         board of directors or other managers of such corporation, partnership
         or other entity are at the time owned, or the management of which is
         otherwise controlled, directly or indirectly through one or more
         intermediaries, or both, by such Person. Unless otherwise qualified,
         all references to a "Subsidiary" or to "Subsidiaries" in this Agreement
         shall refer to a Subsidiary or Subsidiaries of the Borrower.

                  "SUBSIDIARY GUARANTOR": each Subsidiary of the Borrower other
         than (i) any Excluded Foreign Subsidiary and (ii) JuJu Media, Inc.

                  "SWING LINE COMMITMENT": at any time, the lesser of (a)
         $3,000,000 and (b) the aggregate amount of the Revolving Credit
         Commitments at such time.

                  "SWING LINE LENDER": Lehman Commercial Paper Inc., in its
         capacity as the lender of Swing Line Loans.

                  "SWING LINE LOANS": as defined in Section 2.6(a).

                  "SWING LINE NOTES": as defined in Section 2.8(e).

                  "SWING LINE PARTICIPATION AMOUNT": as defined in Section
         2.7(c).

                  "SYNDICATION AGENT": as defined in the preamble hereto.

                  "TERM LOAN": as defined in Section 2.1(a).

                  "TERM LOAN COMMITMENT": as to any Term Loan Lender, the
         obligation of such Lender to make a Term Loan to the Borrower hereunder
         on the Closing Date in a principal amount not to exceed the amount set
         forth under the heading "Term Loan Commitment" opposite such Lender's
         name on Schedule 1 to the Lender Addendum delivered by such Lender, or,
         as the case may be,

                                      -24-
<PAGE>

         in the Assignment and Acceptance pursuant to which such Lender became a
         party hereto, as the same may be changed from time to time pursuant to
         the terms hereof. The original aggregate amount of the Term Loan
         Commitments is $125,000,000.

                  "TERM LOAN LENDER": each Lender that has a Term Loan
         Commitment or is the holder a Term Loan.

                  "TERM LOAN MATURITY DATE": the date that is six (6) years
         following the Closing Date; PROVIDED, HOWEVER, that in the event the
         Borrower has not redeemed or repurchased and retired (with the proceeds
         of an equity issuance (other than a Disqualified Equity Issuance) or
         with the proceeds of a Permitted Refinancing) all Senior Subordinated
         Notes on or prior to December 31, 2008, the "Term Loan Maturity Date"
         shall be the date that is five and one-half (5-1/2) years following the
         Closing Date.

                  "TERM LOAN PERCENTAGE": as to any Term Loan Lender at any
         time, the percentage which such Lender's Term Loan Commitment bears to
         the aggregate Term Loan Commitments at such time.

                  "TERM NOTES": as defined in Section 2.8(e).

                  "TERMINATION DATE": the date and time, if any, that all
         Obligations have been paid in full in cash, no Commitment shall be in
         effect and no Letter of Credit shall be in effect, other than any
         Letter of Credit (i) for which there shall have been deposited in a
         cash collateral account in which the Administrative Agent has a first
         priority perfected security interest pursuant to a Control Agreement
         and on terms acceptable to the Administrative Agent, cash in an amount
         at least equal to the undrawn amount of such Letter of Credit or (y)
         for which the Issuing Lender with respect to such Letter of Credit
         shall have received a Qualified Supporting Letter of Credit.

                  "TOTAL REVOLVING CREDIT COMMITMENTS": at any time, the
         aggregate amount of the Revolving Credit Commitments then in effect;
         PROVIDED that the amount of the Total Revolving Credit Commitments on
         the Closing Date shall be $10,000,000.

                  "TOTAL REVOLVING EXTENSIONS OF CREDIT": at any time, the
         aggregate amount of the Revolving Extensions of Credit of the Revolving
         Credit Lenders outstanding at such time.

                  "TRADEMARK SECURITY AGREEMENT SUPPLEMENT": as defined in the
         Guarantee and Collateral Agreement.

                  "TRANSFEREE": as defined in Section 10.14.

                  "TYPE": as to any Loan, its nature as a Base Rate Loan or a
         Eurodollar Loan.

                  "UNFUNDED PENSION LIABILITY" means the excess of a Single
         Employer Plan's benefit liabilities under Section 4001(a)(16) of ERISA,
         over the current value of that plan's assets, determined in accordance
         with the assumptions used for funding such Plan pursuant to Section 412
         of the Code for the applicable plan year.

                  "WHOLLY OWNED SUBSIDIARY": as to any Person, any other Person
         all of the Capital Stock of which (other than directors' qualifying
         shares required by law) is owned by such Person directly and/or through
         other Wholly Owned Subsidiaries.

                                      -25-
<PAGE>

                  "WHOLLY OWNED SUBSIDIARY GUARANTOR": any Subsidiary Guarantor
         that is a Wholly Owned Subsidiary of the Borrower.

                  1.2 OTHER DEFINITIONAL PROVISIONS.

                  (a) Unless otherwise specified therein, all terms defined in
this Agreement shall have such defined meanings when used in the other Loan
Documents or any certificate or other document made or delivered pursuant hereto
or thereto.

                  (b) As used herein and in the other Loan Documents and any
certificate or other document made or delivered pursuant hereto or thereto,
accounting terms relating to the Borrower and its Subsidiaries not defined in
Section 1.1 and accounting terms partly defined in Section 1.1, to the extent
not defined, shall have the respective meanings given to them under GAAP.

                  (c) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.

                  (d) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

                  (e) The expressions "payment in full," "paid in full" and any
other similar terms or phrases when used herein with respect to the Obligations
shall mean the payment in full, in immediately available funds, of all of the
Obligations.

                  (f) The term "including" is not limiting and means "including
without limitation."

SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

                  2.1 TERM LOAN COMMITMENTS.

                  (a) Subject to the terms and conditions hereof, each Term Loan
Lender severally agrees to make term loans (each a "TERM LOAN") to the Borrower
in a single funding on the Closing Date in an aggregate amount not to exceed the
amount of the Term Loan Commitment of such Lender.

                  (b) The Term Loan Commitments shall terminate as to each Term
Loan Lender upon funding of its Term Loan. Term Loans that are repaid may not be
reborrowed.

                  2.2 PROCEDURE FOR TERM LOAN BORROWING. The Borrower shall give
the Administrative Agent irrevocable notice (which notice must be received by
the Administrative Agent prior to 10:00 A.M., New York City time, one Business
Day prior to the anticipated Closing Date if the Term Loans are funded as Base
Rate Loans or three Business Days prior to the anticipated Closing Date if the
Term Loans are funded as Eurodollar Loans) requesting that the Term Loan Lenders
make the Term Loans on such anticipated Closing Date and specifying the amount
to be borrowed, which shall be equal to the aggregate amount of the Term Loan
Commitments of all Term Loan Lenders. Upon receipt of such notice, the
Administrative Agent shall promptly notify each Term Loan Lender thereof. Not
later than 12:00 noon, New York City time, on such anticipated Closing Date,
each Term Loan Lender shall make available to the Administrative Agent at the
Funding Office an amount in immediately available funds equal to the Term Loan
or Term Loans to be made by such Lender.

                                      -26-
<PAGE>

                  2.3 REPAYMENT OF TERM LOANS. The Borrower shall pay the
principal amount of the Term Loans in twenty (20) consecutive quarterly
installments commencing on March 31, 2004 and continuing on the last day of each
December, March, June and September of each year thereafter through and
including December 31, 2008, and the amount of the quarterly installment due on
each such payment date shall be equal to 0.25% of the original principal balance
of all Term Loans funded on the Closing Date. Thereafter, the Borrower shall pay
the remaining principal amount of the Term Loans on the last day of each March,
June, September and December, and the amount of the quarterly installment due on
each such payment date shall be equal to 25% of the remaining principal balance
of all Term Loans as of December 31, 2008. Notwithstanding the foregoing, the
aggregate outstanding principal balance of the Term Loans shall be due and
payable in immediately available funds on the Term Loan Maturity Date, if not
sooner paid in full.

                  2.4 REVOLVING CREDIT COMMITMENTS.

                  (a) Subject to the terms and conditions hereof, each Revolving
Credit Lender severally agrees to make revolving credit loans (each a "REVOLVING
CREDIT LOAN") to the Borrower in one or more fundings during the Revolving
Credit Commitment Period in an aggregate principal amount at any one time
outstanding which, when added to such Lender's Revolving Credit Percentage of
the sum of (i) the L/C Obligations then outstanding and (ii) the aggregate
principal amount of the Swing Line Loans then outstanding, does not exceed the
amount of such Lender's Revolving Credit Commitment. During the Revolving Credit
Commitment Period the Borrower may use the Revolving Credit Commitments by
borrowing, prepaying the Revolving Credit Loans in whole or in part and
reborrowing, all in accordance with the terms and conditions hereof. The
Revolving Credit Commitments shall terminate on the Revolving Credit Termination
Date. The Revolving Credit Loans may from time to time be Eurodollar Loans or
Base Rate Loans, as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections 2.5 and 2.13, provided that no
Revolving Credit Loan shall be made as a Eurodollar Loan after the day that is
one month prior to the Revolving Credit Termination Date.

                  (b) The Borrower shall repay all outstanding Revolving Credit
Loans on the Revolving Credit Termination Date.

                  2.5 PROCEDURE FOR REVOLVING CREDIT BORROWING. The Borrower may
borrow under the Revolving Credit Commitments during the Revolving Credit
Commitment Period on any Business Day; PROVIDED that the Borrower shall give the
Administrative Agent irrevocable notice in a Notice of Borrowing (which Notice
of Borrowing must be received by the Administrative Agent prior to 12:00 noon,
New York City time, (a) three Business Days prior to the requested Borrowing
Date, in the case of Eurodollar Loans or (b) one Business Day prior to the
requested Borrowing Date, in the case of Base Rate Loans, specifying (i) the
amount and Type of Revolving Credit Loans to be borrowed, (ii) the requested
Borrowing Date and (iii) in the case of Eurodollar Loans, the length of the
initial Interest Period therefor. Any Revolving Credit Loans made on the Closing
Date shall initially be Base Rate Loans, and no Revolving Credit Loan may be
made as, converted into or continued as a Eurodollar Loan having an Interest
Period in excess of one month prior to the date which is 60 days after the
Closing Date. Each borrowing under the Revolving Credit Commitments shall be in
an amount equal to (x) in the case of Base Rate Loans, $1,000,000 or a whole
multiple thereof (or, if the then aggregate Available Revolving Credit
Commitments are less than $1,000,000, such lesser amount) and (y) in the case of
Eurodollar Loans, $1,000,000 or a whole multiple of $1,000,000 in excess
thereof; PROVIDED that the Swing Line Lender may request, on behalf of the
Borrower, borrowings under the Revolving Credit Commitments that are Base Rate
Loans in other amounts pursuant to Section 2.7. Upon receipt of any such Notice
of Borrowing from the Borrower, the Administrative Agent shall promptly notify
each Revolving Credit Lender thereof. Each Revolving Credit Lender will make the
amount of its pro rata share of each borrowing available to the Administrative
Agent for the account of the Borrower at the Funding Office

                                      -27-
<PAGE>

prior to 12:00 noon, New York City time, on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent. Such
borrowing will then be made available to the Borrower by the Administrative
Agent in like funds as received by the Administrative Agent.

                  2.6 SWING LINE COMMITMENT.

                  (a) Subject to the terms and conditions hereof, the Swing Line
Lender agrees to make a portion of the credit otherwise available to the
Borrower under the Revolving Credit Commitments from time to time during the
Revolving Credit Commitment Period by making swing line loans ("SWING LINE
LOANS") to the Borrower; PROVIDED that (i) the aggregate principal amount of
Swing Line Loans outstanding at any time shall not exceed the Swing Line
Commitment then in effect (notwithstanding that the Swing Line Loans outstanding
at any time, when aggregated with the Swing Line Lender's other outstanding
Revolving Credit Loans hereunder, may exceed the Swing Line Commitment then in
effect) and (ii) the Borrower shall not request, and the Swing Line Lender shall
not make, any Swing Line Loan if, after giving effect to the making of such
Swing Line Loan, the aggregate amount of the Available Revolving Credit
Commitments would be less than zero. During the Revolving Credit Commitment
Period, the Borrower may use the Swing Line Commitment by borrowing, repaying
and reborrowing, all in accordance with the terms and conditions hereof. Swing
Line Loans shall be Base Rate Loans only.

                  (b) The Borrower shall repay all outstanding Swing Line Loans
on the Revolving Credit Termination Date.

                  2.7 PROCEDURE FOR SWING LINE BORROWING; REFUNDING OF SWING
LINE LOANS.

                  (a) Whenever the Borrower desires that the Swing Line Lender
make Swing Line Loans it shall give the Swing Line Lender irrevocable telephonic
notice confirmed promptly in writing (which telephonic notice must be received
by the Swing Line Lender not later than 1:00 P.M., New York City time, on the
proposed Borrowing Date) specifying (i) the amount to be borrowed and (ii) the
requested Borrowing Date (which shall be a Business Day during the Revolving
Credit Commitment Period). Each borrowing under the Swing Line Commitment shall
be in an amount equal to $500,000 or a whole multiple of $100,000 in excess
thereof. Not later than 3:00 P.M., New York City time, on the Borrowing Date
specified in a notice in respect of Swing Line Loans, the Swing Line Lender
shall make available to the Administrative Agent at the Funding Office an amount
in immediately available funds equal to the amount of the Swing Line Loan to be
made by the Swing Line Lender. The Administrative Agent shall make the proceeds
of such Swing Line Loan available to the Borrower on such Borrowing Date in
immediately available funds.

                  (b) The Swing Line Lender, at any time and from time to time
in its sole and absolute discretion may, on behalf of the Borrower (which hereby
irrevocably directs the Swing Line Lender to act on its behalf), on one Business
Day's notice given by the Swing Line Lender no later than 12:00 noon, New York
City time, request each Revolving Credit Lender to make, and each Revolving
Credit Lender hereby agrees to make, a Revolving Credit Loan, in an amount equal
to such Revolving Credit Lender's Revolving Credit Percentage of the aggregate
amount of the Swing Line Loans (the "REFUNDED SWING LINE LOANS") outstanding on
the date of such notice, to repay the Swing Line Lender. Each Revolving Credit
Lender shall make the amount of such Revolving Credit Loan available to the
Administrative Agent at the Funding Office in immediately available funds, not
later than 12:00 noon, New York City time, one Business Day after the date of
such notice. The proceeds of such Revolving Credit Loans shall be immediately
made available by the Administrative Agent to the Swing Line Lender for
application by the Swing Line Lender to the repayment of the Refunded Swing Line
Loans. The Borrower irrevocably authorizes the Swing Line Lender to charge the
Borrower's accounts with the

                                      -28-
<PAGE>

Administrative Agent (up to the amount available in each such account) in order
to immediately pay the amount of such Refunded Swing Line Loans to the extent
amounts received from the Revolving Credit Lenders are not sufficient to repay
in full such Refunded Swing Line Loans.

                  (c) If prior to the time a Revolving Credit Loan would have
otherwise been made pursuant to Section 2.7(b), one of the events described in
Section 8(f) shall have occurred and be continuing with respect to the Borrower
or if for any other reason, as determined by the Swing Line Lender in its sole
discretion, Revolving Credit Loans may not be made as contemplated by Section
2.7(b), each Revolving Credit Lender shall, on the first Business Day following
demand by the Swing Line Lender therefor (the "REFUNDING DATE"), purchase for
cash an undivided participating interest in the then outstanding Swing Line
Loans by paying to the Swing Line Lender an amount (the "SWING LINE
PARTICIPATION AMOUNT") equal to (i) such Revolving Credit Lender's Revolving
Credit Percentage times (ii) the sum of the aggregate principal amount of Swing
Line Loans then outstanding.

                  (d) Whenever, at any time after the Swing Line Lender has
received from any Revolving Credit Lender such Lender's Swing Line Participation
Amount, the Swing Line Lender receives any payment on account of the Swing Line
Loans, the Swing Line Lender will distribute to such Revolving Credit Lender its
Swing Line Participation Amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Revolving Credit
Lender's participating interest was outstanding and funded and, in the case of
principal and interest payments, to reflect such Revolving Credit Lender's pro
rata portion of such payment if such payment is not sufficient to pay the
principal of and interest on all Swing Line Loans then due); PROVIDED, HOWEVER,
that in the event that such payment received by the Swing Line Lender is
required to be returned, such Revolving Credit Lender will return to the Swing
Line Lender any portion thereof previously distributed to it by the Swing Line
Lender.

                  (e) Each Revolving Credit Lender's obligation to make the
Loans referred to in Section 2.7(b) and to purchase participating interests
pursuant to Section 2.7(c) shall be absolute and unconditional and shall not be
affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right which such Revolving Credit Lender or the
Borrower may have against the Swing Line Lender, the Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or continuation of any
Default or the failure to satisfy any of the other conditions precedent
specified in Section 5; (iii) any adverse change in the condition (financial or
otherwise) of the Borrower; (iv) any breach of this Agreement or any other Loan
Document by the Borrower, any other Loan Party or any other Revolving Credit
Lender; or (v) any other circumstance, happening or event whatsoever, whether or
not similar to any of the foregoing.

                  2.8 REPAYMENT OF LOANS; EVIDENCE OF INDEBTEDNESS.

                  (a) The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of the appropriate Lender (i) the then
unpaid principal amount of each Revolving Credit Loan on the Revolving Credit
Termination Date (or such earlier date on which the Loans become due and payable
pursuant to Section 8), (ii) the then unpaid principal amount of each Swing Line
Loan on the Revolving Credit Termination Date (or such earlier date on which the
Loans become due and payable pursuant to Section 8) and (iii) the principal
amount of each Term Loan in installments or at maturity as set forth in Section
2.3 (or on such earlier date on which the Loans become due and payable pursuant
to Section 8). The Borrower hereby further agrees to pay interest on the unpaid
principal amount of the Loans from time to time outstanding from the date hereof
until payment in full thereof at the rates per annum, and on the dates, set
forth in Section 2.15.

                                      -29-
<PAGE>

                  (b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing Indebtedness of the Borrower to such
Lender resulting from each Loan of such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.

                  (c) The Administrative Agent, on behalf of the Borrower, shall
maintain the Register pursuant to Section 10.6(e), and a subaccount therein for
each Lender, and shall record therein (i) the amount of each Loan made hereunder
and any Note evidencing such Loan, the Type thereof and each Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from the Borrower to each Lender hereunder and
(iii) both the amount of any sum received by the Administrative Agent hereunder
from the Borrower and each Lender's share thereof.

                  (d) The entries made in the Register and the accounts of each
Lender maintained pursuant to Section 2.8(b) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; PROVIDED, HOWEVER, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such account, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay (with applicable interest) the Loans made to
the Borrower by such Lender in accordance with the terms of this Agreement.

                  (e) The Borrower agrees that, upon the request to the
Administrative Agent of any Lender, the Borrower will execute and deliver to
such Lender a promissory note of the Borrower evidencing any Term Loans,
Revolving Credit Loans or Swing Line Loans, as the case may be, of such Lender,
substantially in the forms of Exhibits F-1, F-2 or F-3, respectively, with
appropriate insertions as to date and principal amount (such notes,
respectively, "TERM NOTES", "REVOLVING CREDIT NOTES" and "SWING LINE NOTES").

                  2.9 COMMITMENT FEES, ETC.

                  (a) The Borrower agrees to pay to the Administrative Agent,
for the account of each Revolving Credit Lender, a commitment fee for the period
from and including the Closing Date to the last day of the Revolving Credit
Commitment Period, computed at the Commitment Fee Rate determined from day to
day on the average daily amount of the Available Revolving Credit Commitment of
such Lender during the period for which payment is made, payable quarterly in
arrears on the last day of each March, June, September and December and on the
Revolving Credit Termination Date, commencing on the first of such dates to
occur after the date hereof.

                  (b) The Borrower agrees to pay to each Agent the fees in the
amounts and on the dates from time to time agreed to in writing by the Borrower
pursuant to the Fee Letter.

                  2.10 TERMINATION OR REDUCTION OF REVOLVING CREDIT COMMITMENTS.
The Borrower shall have the right, upon not less than three Business Days'
notice to the Administrative Agent, to terminate the Revolving Credit
Commitments or, from time to time, to reduce the amount of the Revolving Credit
Commitments; PROVIDED that no such termination or reduction of Revolving Credit
Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Credit Loans and Swing Line Loans made on the
effective date thereof, the Total Revolving Extensions of Credit would exceed
the Total Revolving Credit Commitments. Any such reduction shall be in an amount
equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently
the Revolving Credit Commitments then in effect.

                  2.11 OPTIONAL PREPAYMENTS. The Borrower may at any time and
from time to time prepay the Loans, in whole or in part, without premium or
penalty, upon irrevocable notice delivered to

                                      -30-
<PAGE>

the Administrative Agent at least three Business Days prior thereto in the case
of Eurodollar Loans and at least one Business Day prior thereto in the case of
Base Rate Loans, which notice shall (i) designate whether the Borrower is
prepaying Revolving Credit Loans, Term Loans or both and (ii) specify the date
and amount of prepayment and whether the prepayment is of Eurodollar Loans or
Base Rate Loans; PROVIDED that if a Eurodollar Loan is prepaid on any day other
than the last day of the Interest Period applicable thereto, the Borrower shall
also pay any amounts owing pursuant to Section 2.21. Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof. If any such notice is given, the amount specified in such notice shall
be due and payable on the date specified therein, together with (except in the
case of Revolving Credit Loans (unless all Revolving Credit Loans are being
repaid and the Revolving Credit Commitments terminated) that are Base Rate Loans
and Swing Line Loans) accrued interest to such date on the amount prepaid.
Optional prepayments of Term Loans shall be applied pro rata against the
remaining installments thereof. Optional partial prepayments of Term Loans and
Revolving Credit Loans shall be in an aggregate principal amount of $1,000,000
or any integral multiple of $500,000 in excess thereof. Optional partial
prepayments of Swing Line Loans shall be in an aggregate principal amount of
$100,000 or a whole multiple thereof.

                  2.12 MANDATORY PREPAYMENTS AND COMMITMENT REDUCTIONS.

                  (a) Unless the Required Prepayment Lenders shall otherwise
agree:

                           (i) if the Borrower or any of its Subsidiaries incurs
         any Indebtedness or issues any Disqualified Stock after the Closing
         Date (except any incurrence of Indebtedness permitted under Section
         7.2), an amount equal to 100% of all Net Cash Proceeds of such
         incurrence or issuance shall be applied within one Business Day of such
         incurrence or issuance toward the prepayment of the Term Loans and the
         reduction of the Revolving Credit Commitments as set forth in Section
         2.12(c), PROVIDED, that notwithstanding the foregoing the proceeds of
         any Permitted Refinancing may be applied by the Borrower to the
         redemption or purchase of the Senior Subordinated Notes;

                           (ii) if the Borrower or any of its Subsidiaries
         issues any Capital Stock (other than any Disqualified Stock) after the
         Closing Date (other than (1) Capital Stock, the proceeds of which are
         used solely to fund Permitted Acquisitions or constitute or to redeem
         or repurchase Senior Subordinated Notes and premiums, costs and
         expenses associated therewith and Capital Stock constituting
         consideration payable in a Permitted Acquisition, (2) the Preferred
         Stock and (3) Capital Stock the proceeds of which are used to redeem
         the Preferred Stock in accordance with and subject to the limits set
         forth in the Certificates of Designation and premiums, costs and
         expenses associated therewith), an amount equal to 50% of the Net Cash
         Proceeds of such issuance shall be applied within one Business Day of
         such issuance toward the prepayment of the Term Loans and the reduction
         of the Revolving Credit Commitments as set forth in Section 2.12(c);

                           (iii) if the Borrower or any of its Subsidiaries
         sells the SA Station and/or the SF Station, an amount equal to 100% of
         the Net Cash Proceeds of any such sale in excess of $25,000,000 (until
         $25,000,000 of such Net Cash Proceeds has been applied toward the
         prepayments described in this subsection (iii)) and thereafter 50% of
         such Net Cash Proceeds, shall be applied within one Business Day of
         receipt thereof toward the prepayment of the Term Loans and the
         reduction of the Revolving Credit Commitments as set forth in Section
         2.12(c); and

                           (iv) if the Borrower or any of its Subsidiaries
         receives any purchase price refund or other adjustment in respect of
         the KXOL Acquisition, an amount equal to 100% of the such refund or
         other adjustment (other than such portion, if any, of such refund
         or other

                                      -31-
<PAGE>
         adjustment that is paid in respect of liabilities of radio station
         KXOL-FM) shall be applied within one Business Day of receipt thereof
         toward the prepayment of the Term Loans and the reduction of the
         Revolving Credit Commitments as set forth in Section 2.12(c).

                  (b) Unless the Required Prepayment Lenders shall otherwise
agree, if on any date the Borrower or any of its Subsidiaries shall receive Net
Cash Proceeds from any Asset Sale (other than an Asset Sale described above in
Section 2.12(a)(iii)) or Recovery Event then, unless a Reinvestment Notice shall
be delivered in respect thereof, an amount equal to 100% of such Net Cash
Proceeds shall be applied on such date toward the prepayment of the Term Loans
and the reduction of the Revolving Credit Commitments as set forth in Section
2.12(c); PROVIDED that, notwithstanding the foregoing, (i) the aggregate Net
Cash Proceeds of Asset Sales that may be excluded from the foregoing requirement
pursuant to a Reinvestment Notice shall not, when added to all amounts
previously excluded pursuant to a Reinvestment Notice and not yet reinvested in
assets useful in the Borrower's business, exceed $60,000,000 in respect of any
single Asset Sale or $100,000,000 in any fiscal year of the Borrower and (ii) on
each Reinvestment Prepayment Date, an amount equal to the Reinvestment
Prepayment Amount with respect to the relevant Reinvestment Event shall be
applied toward the prepayment of the Term Loans and the reduction of the
Revolving Credit Commitments as set forth in Section 2.12(c).

                  (c) Amounts to be applied in connection with prepayments and
Commitment reductions made pursuant to this Section 2.12 shall be applied,
FIRST, to the prepayment of the Term Loans pro rata against the remaining
installments thereof (PROVIDED that each Term Loan Lender may decline such
prepayment, and if any Term Loan Lender elects to so decline (i) each Term Loan
Lender that has not so declined shall be offered the option to receive its pro
rata share of any such declined prepayments and (ii) such process shall continue
until either (x) all such prepayments are applied to the Term Loans then
outstanding or (y) none of the Term Loan Lenders will accept any remaining
declined prepayments), SECOND, following payment in full of the Term Loans, to
reduce permanently the Revolving Credit Commitments and, THIRD, to the Borrower
or such other Person as shall be lawfully entitled thereto. Any such reduction
of the Revolving Credit Commitments shall be accompanied by prepayment of the
Revolving Credit Loans and/or Swing Line Loans to the extent, if any, that the
Total Revolving Extensions of Credit exceed the amount of the Total Revolving
Credit Commitments as so reduced, PROVIDED that if the aggregate principal
amount of Revolving Credit Loans and Swing Line Loans then outstanding is less
than the amount of the Total Revolving Credit Commitments as so reduced (because
L/C Obligations constitute a portion thereof), the Borrower shall, to the extent
of the balance of such excess, replace outstanding Letters of Credit and/or
deposit an amount in immediately available funds in a cash collateral account
established with the Administrative Agent for the benefit of the Secured Parties
on terms and conditions satisfactory to the Administrative Agent (and the
Borrower hereby grants to the Administrative Agent, for the ratable benefit of
the Secured Parties, a continuing security interest in all amounts at any time
on deposit in such cash collateral account to secure all L/C Obligations from
time to time outstanding and all other Obligations). If at any time the
Administrative Agent determines that any funds held in such cash collateral
account are subject to any right or claim of any Person other than the
Administrative Agent and the Secured Parties or that the total amount of such
funds is less than the amount of such excess, the Borrower shall, forthwith upon
demand by the Administrative Agent, pay to the Administrative Agent, as
additional funds to be deposited and held in such cash collateral account, an
amount equal to the excess of (A) the amount of such excess over (B) the total
amount of funds, if any, then held in such cash collateral account that the
Administrative Agent determines to be free and clear of any such right and
claim. The application of any prepayment pursuant to Section 2.11 and this
Section 2.12 shall be made, FIRST, to Base Rate Loans and, SECOND, to Eurodollar
Loans. Each prepayment of the Loans under Section 2.11 and this Section 2.12
(except in the case of Revolving Credit Loans (unless the Revolving Credit Loans
are being repaid in full and the Revolving Credit Commitments terminated) that
are Base Rate Loans and Swing Line Loans) shall be accompanied by accrued
interest to the date of such prepayment on the amount prepaid. All prepayments
and Commitment reductions made

                                      -32-
<PAGE>

pursuant to this Section 2.12 shall be made without penalty or premium, PROVIDED
that if a Eurodollar Loan is prepaid on any day other than the last day of the
Interest Period applicable thereto, the Borrower shall also pay any amounts
owing pursuant to Section 2.21.

                  2.13 CONVERSION AND CONTINUATION OPTIONS.

                  (a) The Borrower may elect from time to time to convert
Eurodollar Loans to Base Rate Loans by giving the Administrative Agent at least
two Business Days' prior irrevocable notice of such election, PROVIDED that any
such conversion of Eurodollar Loans may only be made on the last day of an
Interest Period with respect thereto. The Borrower may elect from time to time
to convert Base Rate Loans to Eurodollar Loans by giving the Administrative
Agent at least three Business Days' prior irrevocable notice of such election
(which notice shall specify the length of the initial Interest Period therefor),
PROVIDED that no Base Rate Loan under a particular Facility may be converted
into a Eurodollar Loan (i) when any Event of Default has occurred and is
continuing if the Administrative Agent or the Majority Facility Lenders in
respect of such Facility have determined in its or their sole discretion not to
permit such conversions or (ii) after the date that is one month prior to the
final scheduled termination or maturity date of such Facility. Upon receipt of
any such notice the Administrative Agent shall promptly notify each relevant
Lender thereof.

                  (b) Any Eurodollar Loan may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
Borrower giving irrevocable notice to the Administrative Agent, in accordance
with the applicable provisions of the term "Interest Period" set forth in
Section 1.1, of the length of the next Interest Period to be applicable to such
Loans, PROVIDED that no Eurodollar Loan under a particular Facility may be
continued as such (i) when any Event of Default has occurred and is continuing
if the Administrative Agent or the Majority Facility Lenders in respect of such
Facility have determined in its or their sole discretion not to permit such
continuations or (ii) after the date that is one month prior to the final
scheduled termination or maturity date of such Facility, and PROVIDED, FURTHER,
that if the Borrower shall fail to give any required notice as described above
in this paragraph or if such continuation is not permitted pursuant to the
preceding proviso, such Loans shall be automatically converted to Base Rate
Loans on the last day of such then expiring Interest Period. Upon receipt of any
such notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

                  2.14 MINIMUM AMOUNTS AND MAXIMUM NUMBER OF EURODOLLAR
TRANCHES. Notwithstanding anything to the contrary in this Agreement, all
borrowings, conversions, continuations and optional prepayments of Eurodollar
Loans hereunder and all selections of Interest Periods hereunder shall be in
such amounts and be made pursuant to such elections so that (a) after giving
effect thereto, the aggregate principal amount of the Eurodollar Loans
comprising each Eurodollar Tranche shall be equal to $1,000,000 or a whole
multiple of $1,000,000 in excess thereof and (b) no more than six Eurodollar
Tranches shall be outstanding at any one time.

                  2.15 INTEREST RATES AND PAYMENT DATES.

                  (a) Each Eurodollar Loan shall bear interest for each day
during each Interest Period with respect thereto at a rate per annum equal to
the Eurodollar Rate determined for such day plus the Applicable Margin.

                  (b) Each Base Rate Loan shall bear interest at a rate per
annum equal to the Base Rate plus the Applicable Margin.

                  (c) (i) If all or a portion of the principal amount of any
Loan or Reimbursement Obligation shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), all

                                      -33-
<PAGE>

outstanding Loans and Reimbursement Obligations (whether or not overdue) shall
bear interest at a rate per annum that is equal to (x) in the case of the Loans,
the rate that would otherwise be applicable thereto pursuant to the foregoing
provisions of this Section plus 2.0% per annum or (y) in the case of
Reimbursement Obligations, the rate applicable to Base Rate Loans under the
Revolving Credit Facility plus 2.0% per annum and (ii) if all or a portion of
any interest payable on any Loan or Reimbursement Obligation or any commitment
fee or other amount payable hereunder shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to Base Rate
Loans under the relevant Facility plus 2.0% per annum (or, in the case of any
such other amounts that do not relate to a particular Facility, the rate then
applicable to Base Rate Loans under the Revolving Credit Facility plus 2.0% per
annum), in each case, with respect to clauses (i) and (ii) above, from the date
of such non-payment until such amount is paid in full (after as well as before
judgment).

                  (d) Interest shall be payable in arrears on each Interest
Payment Date, provided that interest accruing pursuant to paragraph (c) of this
Section shall be payable from time to time on demand.

                  2.16 COMPUTATION OF INTEREST AND FEES.

                  (a) Interest, fees and commissions payable pursuant hereto
shall be calculated on the basis of a 360-day year for the actual days elapsed,
except that, with respect to Base Rate Loans the rate of interest on which is
calculated on the basis of the Prime Rate, the interest thereon shall be
calculated on the basis of a 365-day (or 366-day, as the case may be) year for
the actual days elapsed. The Administrative Agent shall as soon as practicable
notify the Borrower and the relevant Lenders of each determination of a
Eurodollar Rate. Any change in the interest rate on a Loan resulting from a
change in the Base Rate or the Eurocurrency Reserve Requirements shall become
effective as of the opening of business on the day on which such change becomes
effective. The Administrative Agent shall as soon as practicable notify the
Borrower and the relevant Lenders of the effective date and the amount of each
such change in interest rate. Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error. The Administrative Agent shall, at the request of the Borrower
or any Lender, deliver to the Borrower or such Lender a statement showing the
quotations used by the Administrative Agent in determining any interest rate
pursuant to Section 2.15(a).

                  2.17 INABILITY TO DETERMINE INTEREST RATE. If prior to the
first day of any Interest Period:

                  (a) the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrower) that, by reason
of circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate for such Interest Period, or

                  (b) the Administrative Agent shall have received notice from
the Majority Facility Lenders in respect of the relevant Facility that the
Eurodollar Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (as conclusively
certified by such Lenders) of making or maintaining their affected Loans during
such Interest Period,

                  (c) the Administrative Agent shall give telecopy or telephonic
notice thereof to the Borrower and the relevant Lenders as soon as practicable
thereafter. If such notice is given (i) any Eurodollar Loans under the relevant
Facility requested to be made on the first day of such Interest Period shall be
made as Base Rate Loans, (ii) any Loans under the relevant Facility that were to
have been converted on the first day of such Interest Period to Eurodollar Loans
shall be continued as Base Rate

                                      -34-
<PAGE>

Loans and (iii) any outstanding Eurodollar Loans under the relevant Facility
shall be converted, on the last day of the then current Interest Period with
respect thereto, to Base Rate Loans. If adequate and reasonable means do exist
for ascertaining the Eurodollar Rate for a future Interest Period and the
Eurodollar Rate determined or to be determined for such Interest Period will
adequately and fairly reflect the cost to such Lenders (as conclusively
determined by such Lenders) then such Lenders shall promptly direct the
Administrative Agent to withdraw such notice. Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans under the
relevant Facility shall be made or continued as such, nor shall the Borrower
have the right to convert Loans under the relevant Facility to Eurodollar Loans.

                  2.18 PRO RATA TREATMENT AND PAYMENTS.

                  (a) Each borrowing by the Borrower from the Lenders hereunder,
each payment by the Borrower on account of any commitment fee and any reduction
of the Commitments of the Lenders shall be made pro rata according to the
respective Term Loan Percentages or Revolving Credit Percentages, as the case
may be, of the relevant Lenders. Subject to Section 2.18(c), each payment (other
than prepayments) in respect of principal or interest in respect of the Loans,
and each payment in respect of fees or expenses payable hereunder shall be
applied to the amounts of such obligations owing to the Lenders pro rata
according to the respective amounts then due and owing to the Lenders. The
application of any prepayment pursuant to this Section 2.18 shall be made,
FIRST, to Base Rate Loans and, SECOND, to Eurodollar Loans.

                  (b) Each prepayment to be applied to Term Loans shall be
allocated among the Term Loan Lenders holding such Term Loans pro rata based on
the principal amount of the Term Loans held by each Term Loan Lender and shall
be applied to the remaining scheduled quarterly installments due on the Term
Loans pursuant to Section 2.3 PRO RATA.

                  (c) Each payment (including each prepayment) by the Borrower
on account of principal of and interest on the Revolving Credit Loans shall be
made pro rata according to the respective outstanding principal amounts of the
Revolving Credit Loans then held by the Revolving Credit Lenders.

                  (d) All payments (including prepayments) to be made by the
Borrower hereunder, whether on account of principal, interest, fees or
otherwise, shall be made without setoff or counterclaim and shall be made prior
to 12:00 noon, New York City time, on the due date thereof to the Administrative
Agent, for the account of the Lenders, at the Payment Office, in Dollars and in
immediately available funds. The Administrative Agent shall distribute such
payments to the Lenders promptly upon receipt in like funds as received. If any
payment hereunder (other than payments on the Eurodollar Loans) becomes due and
payable on a day other than a Business Day, such payment shall be extended to
the next succeeding Business Day. If any payment on a Eurodollar Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business Day. In
the case of any extension of any payment of principal pursuant to the preceding
two sentences, interest thereon shall be payable at the then applicable rate
during such extension.

                  (e) Unless the Administrative Agent shall have been notified
in writing by any Lender prior to a borrowing that such Lender will not make the
amount that would constitute its share of such borrowing available to the
Administrative Agent, the Administrative Agent may assume that such Lender is
making such amount available to the Administrative Agent, and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such amount is not made available to the Administrative
Agent by the required time on the Borrowing Date

                                      -35-
<PAGE>

therefor, such Lender shall pay to the Administrative Agent, on demand, such
amount with interest thereon at a rate equal to the daily average Federal Funds
Effective Rate for the period until such Lender makes such amount immediately
available to the Administrative Agent. A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error. If such Lender's share of
such borrowing is not made available to the Administrative Agent by such Lender
within three Business Days of such Borrowing Date, the Administrative Agent
shall also be entitled to recover such amount with interest thereon at the rate
per annum applicable to Base Rate Loans under the relevant Facility, on demand,
from the Borrower.

                  (f) Unless the Administrative Agent shall have been notified
in writing by the Borrower prior to the date of any payment being made hereunder
that the Borrower will not make such payment to the Administrative Agent, the
Administrative Agent may assume that the Borrower is making such payment, and
the Administrative Agent may, but shall not be required to, in reliance upon
such assumption, make available to the Lenders their respective pro rata shares
of a corresponding amount. If such payment is not made to the Administrative
Agent by the Borrower within three Business Days of such required date, the
Administrative Agent shall be entitled to recover, on demand, from each Lender
to which any amount which was made available pursuant to the preceding sentence,
such amount with interest thereon at the rate per annum equal to the daily
average Federal Funds Effective Rate. Nothing herein shall be deemed to limit
the rights of the Administrative Agent or any Lender against the Borrower.

                  2.19 REQUIREMENTS OF LAW.

                  (a) If the adoption of or any change in any Requirement of Law
or in the interpretation or application thereof or compliance by any Lender with
any request or directive (whether or not having the force of law) from any
central bank or other Governmental Authority made subsequent to the date hereof:

                           (i) shall subject any Lender to any tax of any kind
         whatsoever with respect to this Agreement, any Letter of Credit, any
         Application or any Eurodollar Loan made by it, or change the basis of
         taxation of payments to such Lender in respect thereof (except for
         Non-Excluded Taxes covered by Section 2.20 and changes in the rate of
         tax on, or the imposition of a tax on, the overall net income of such
         Lender);

                           (ii) shall impose, modify or hold applicable any
         reserve, special deposit, compulsory loan or similar requirement
         against assets held by, deposits or other liabilities in or for the
         account of, advances, loans or other extensions of credit by, or any
         other acquisition of funds by, any office of such Lender that is not
         otherwise included in the determination of the Eurodollar Rate
         hereunder; or

                           (iii) shall impose on such Lender any other
         condition;

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or issuing or participating in
Letters of Credit, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall promptly pay such Lender,
upon its demand, any additional amounts necessary to compensate such Lender on
an after-tax basis for such increased cost or reduced amount receivable. If any
Lender becomes entitled to claim any additional amounts pursuant to this
Section, such Lender shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so entitled.

                                      -36-
<PAGE>

                  (b) If any Lender shall have determined that the adoption of
or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder or under or in respect of any Letter of
Credit to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender's or such corporation's policies with respect to capital adequacy)
by an amount deemed by such Lender to be material, then from time to time, after
submission by such Lender to the Borrower (with a copy to the Administrative
Agent) of a written request therefor, the Borrower shall pay to such Lender such
additional amount or amounts as will compensate such Lender on an after-tax
basis for such reduction.

                  (c) A certificate as to any additional amounts payable
pursuant to this Section submitted by any Lender to the Borrower (with a copy to
the Administrative Agent) shall be conclusive in the absence of manifest error.
The obligations of the Borrower pursuant to this Section shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

                  2.20 TAXES.

                  (a) All payments made by the Borrower under this Agreement or
any other Loan Document shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding net income taxes, branch profits taxes and franchise taxes (imposed in
lieu of net income taxes) imposed on the Arranger, any Agent or any Lender as a
result of a present or former connection between the Arranger, such Agent or
such Lender and the jurisdiction of the Governmental Authority imposing such tax
or any political subdivision or taxing authority thereof or therein (other than
any such connection arising solely from the Arranger's, such Agent's or such
Lender's having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any other Loan Document). Subject
to the provisions of Section 2.20(f), if any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings ("NON-EXCLUDED
TAXES"), including Other Taxes, are required to be withheld from any amounts
payable to the Arranger, any Agent or any Lender hereunder, the amounts so
payable to the Arranger, such Agent or such Lender shall be increased to the
extent necessary to yield to the Arranger, such Agent or such Lender (after
payment of all Non-Excluded Taxes, including Other Taxes) interest or any such
other amounts that would have been received hereunder had such withholding not
been required. The Borrower or the applicable Subsidiary Guarantor shall make
any required withholding and pay the full amount withheld to the relevant tax
authority or other Governmental Authority in accordance with applicable
Requirements of Law.

                  (b) The Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable Requirements of Law.

                  (c) Subject to Section 2.20(f), the Borrower shall indemnify
the Arranger, each Agent and each Lender for the full amount of Non-Excluded
Taxes or Other Taxes arising in connection with payments made under this
Agreement (including any Non-Excluded Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 2.20) paid by the Arranger,
such Agent or Lender or any of their respective Affiliates and any liability
(including penalties, additions to tax interest and expenses) arising therefrom
or with respect thereto. Payment under this indemnification shall be made within
ten days from the date the Arranger, any Agent or any Lender or any of their
respective Affiliates makes written demand therefor.

                                      -37-
<PAGE>

                  (d) Whenever any Non-Excluded Taxes or Other Taxes are payable
by the Borrower, as promptly as possible thereafter the Borrower shall send to
the Administrative Agent for the account of the Arranger or the relevant Agent
or Lender, as the case may be, a certified copy of an original official receipt
received by the Borrower showing payment thereof.

                  (e) The agreements in this Section 2.20 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

                  (f) Each Lender (or Transferee) that is not a citizen or
resident of the United States of America, or a corporation, partnership or other
entity created or organized in or under the laws of the United States of America
(or any jurisdiction thereof) (a "NON-U.S. LENDER") shall deliver to the
Borrower and the Administrative Agent (and, in the case of a Participant, to the
Lender from which the related participation shall have been purchased) (i) two
copies of either U.S. Internal Revenue Service Form W-8BEN, Form W-8ECI or Form
W-8IMY (or any successor forms), or, in the case of a Non-U.S. Lender claiming
exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of "portfolio interest", a statement
substantially in the form of Exhibit G to the effect that such Lender is
eligible for a complete exemption from withholding of U.S. taxes under Section
871(h) or 881(c) of the Code and a Form W-8BEN, or any subsequent versions
thereof or successors thereto, and (ii) any other form or certificate required
by a taxing authority (including a certificate required under the Code) that is
requested by the Borrower or the Administrative Agent in writing, properly
completed and duly executed by such Non-U.S. Lender claiming complete exemption
from U.S. federal withholding tax on all payments by the Borrower under this
Agreement and the other Loan Documents. Such forms shall be delivered by each
Non-U.S. Lender on or before the date it becomes a party to this Agreement (or,
in the case of any Participant, on or before the date such Participant purchases
the related participation). In addition, each Non-U.S. Lender shall deliver such
forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).
Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall
not be required to deliver any form pursuant to this paragraph that such
Non-U.S. Lender is not legally able to deliver. For any period with respect to
which a Lender (or Transferee) has failed to provide the Borrower with the
appropriate forms described in this Section 2.20(f) (other than if such failure
is due to a change in law occurring subsequent to the date on which a form
originally was required to be provided), such Lender (or Transferee) shall not
be entitled to indemnification under Section 2.20 with respect to Non-Excluded
Taxes that would have been avoided but for such failure.

                  (g) If and to the extent that any Lender is able, in its sole
opinion, to obtain a tax refund or to apply or otherwise take advantage of any
offsetting tax credit or other similar tax benefit arising out of or in
conjunction with any deduction or withholding which gives rise to an obligation
on the Borrower to pay any Non-Excluded Taxes or Other Taxes pursuant to Section
2.20 then such Lender shall, to the extent that in its sole opinion it can do so
without prejudice to the retention of such tax refund or the amount of such
credit or benefit and without any other adverse tax consequences for such
Lender, reimburse to the Borrower at such time as such tax refund or such tax
credit or benefit shall have actually been received by such Lender such amount
as such Lender shall, in its sole opinion, have determined to be attributable to
such tax refund or the relevant deduction or withholding and as will leave such
Lender in no better or worse position than it would have been in if the payment
of such Non-Excluded Taxes or Other Taxes had not been required. Nothing in this
Section 2.20(g) shall oblige any Lender to disclose to the Borrower or any other
person any information regarding its tax affairs or tax computations or
interfere with the right of any Lender to arrange its tax affairs in whatever
manner it thinks fit and, in particular, no Lender shall be under any obligation
to claim relief from its corporate profits or similar tax liability in

                                      -38-
<PAGE>

credits or deductions available to it and, if it does claim, the extent, order
and manner in which it does so shall be at its absolute discretion.

                  2.21 INDEMNITY. The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense that such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making a
borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any
prepayment after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment or conversion of
Eurodollar Loans on a day that is not the last day of an Interest Period with
respect thereto. Such indemnification may include an amount equal to the excess,
if any, of (i) the amount of interest that would have accrued on the amount so
prepaid, or not so borrowed, converted or continued, for the period from the
date of such prepayment or of such failure to borrow, convert or continue to the
last day of such Interest Period (or, in the case of a failure to borrow,
convert or continue, the Interest Period that would have commenced on the date
of such failure) in each case at the applicable rate of interest for such Loans
provided for herein (excluding, however, the Applicable Margin included therein,
if any) over (ii) the amount of interest (as reasonably determined by such
Lender) that would have accrued to such Lender on such amount by placing such
amount on deposit for a comparable period with leading banks in the interbank
eurodollar market. A certificate as to any amounts payable pursuant to this
Section submitted to the Borrower by any Lender shall be conclusive in the
absence of manifest error. This covenant shall survive the termination of this
Agreement and the payment of the Loans and Letters of Credit and all other
amounts payable hereunder.

                  2.22 ILLEGALITY. Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall
forthwith be canceled and (b) such Lender's Loans then outstanding as Eurodollar
Loans, if any, shall be converted automatically to Base Rate Loans on the
respective last days of the then current Interest Periods with respect to such
Loans or within such earlier period as required by law. If any such conversion
of a Eurodollar Loan occurs on a day that is not the last day of the then
current Interest Period with respect thereto, the Borrower shall pay to such
Lender such amounts, if any, as may be required pursuant to Section 2.21.

                  2.23 CHANGE OF LENDING OFFICE. Each Lender agrees that, upon
the occurrence of any event giving rise to the operation of Section 2.19,
2.20(a), 2.20(c) or 2.22 with respect to such Lender, it will, if requested by
the Borrower, use reasonable efforts (subject to overall policy considerations
of such Lender) to designate another lending office for any Loans affected by
such event with the object of avoiding the consequences of such event; PROVIDED
that such designation is made on terms that, in the sole judgment of such
Lender, cause such Lender and its lending office(s) to suffer no economic, legal
or regulatory disadvantage, and PROVIDED, FURTHER, that nothing in this Section
shall affect or postpone any of the obligations of any Borrower or the rights of
any Lender pursuant to Section 2.19, 2.20(a) or 2.22.

                  2.24 REPLACEMENT OF LENDERS UNDER CERTAIN CIRCUMSTANCES. The
Borrower shall be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 2.19, 2.20(a) or 2.20(c) or
(b) defaults in its obligation to make Loans hereunder, with a replacement
financial institution; PROVIDED that (i) such replacement does not conflict with
any Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) prior to any such replacement,
such Lender shall have taken no action under Section 2.23 so as to eliminate the
continued need for payment of amounts owing pursuant to Section 2.19, 2.20(a) or
2.20(c), (iv) the replacement financial institution shall purchase, at par, all
Loans

                                      -39-
<PAGE>

and other amounts owing to such replaced Lender on or prior to the date of
replacement, (v) the Borrower shall be liable to such replaced Lender under
Section 2.21 (as though Section 2.21 were applicable) if any Eurodollar Loan
owing to such replaced Lender shall be purchased other than on the last day of
the Interest Period relating thereto, (vi) the replacement financial
institution, if not already a Lender or an Agent, shall be reasonably
satisfactory to the Administrative Agent, (vii) the replaced Lender shall be
obligated to make such replacement in accordance with the provisions of Section
10.6 (PROVIDED that the Borrower shall be obligated to pay the registration and
processing fee referred to therein), (vii) until such time as such replacement
shall be consummated, the Borrower shall pay all additional amounts (if any)
required pursuant to Section 2.19, 2.20(a) or 2.20(c), as the case may be, and
(ix) any such replacement shall not be deemed to be a waiver of any rights that
the Borrower, the Administrative Agent or any other Lender shall have against
the replaced Lender.

SECTION 3. LETTERS OF CREDIT

                  3.1 L/C COMMITMENT.

                  (a) Subject to the terms and conditions hereof, the Issuing
Lender, in reliance on the agreements of the other Revolving Credit Lenders set
forth in Section 3.4(a), agrees to issue standby letters of credit ("LETTERS OF
CREDIT") for the account of the Borrower on any Business Day during the
Revolving Credit Commitment Period in such form as may be approved from time to
time by the Issuing Lender; PROVIDED that the Issuing Lender shall not issue any
Letter of Credit if, after giving effect to such issuance, (i) the L/C
Obligations would exceed the L/C Commitment or (ii) the aggregate amount of the
Available Revolving Credit Commitments would be less than zero. Each Letter of
Credit shall (i) be denominated in Dollars and (ii) expire no later than the
earlier of (x) the first anniversary of its date of issuance and (y) the date
which is five Business Days prior to the date specified in clause (a) of the
definition of Revolving Credit Termination Date, PROVIDED that any Letter of
Credit with a one-year term may provide for the renewal thereof for additional
one-year periods (which shall in no event extend beyond the date referred to in
clause (y) above).

                  (b) The Issuing Lender shall not at any time be obligated to
issue any Letter of Credit hereunder if such issuance would conflict with, or
cause the Issuing Lender or any L/C Participant to exceed any limits imposed by,
any applicable Requirement of Law.

                  3.2 PROCEDURE FOR ISSUANCE OF LETTER OF CREDIT. The Borrower
may from time to time request that the Issuing Lender issue a Letter of Credit
by delivering to the Issuing Lender at its address for notices specified herein
an Application therefor, completed to the satisfaction of the Issuing Lender,
and such other certificates, documents and other papers and information as the
Issuing Lender may request. Upon receipt of any Application, the Issuing Lender
will process such Application and the certificates, documents and other papers
and information delivered to it in connection therewith in accordance with its
customary procedures and shall promptly issue the Letter of Credit requested
thereby (but in no event shall the Issuing Lender be required to issue any
Letter of Credit earlier than three Business Days after its receipt of the
Application therefor and all such other certificates, documents and other papers
and information relating thereto) by issuing the original of such Letter of
Credit to the beneficiary thereof or as otherwise may be agreed to by the
Issuing Lender and the Borrower. The Issuing Lender shall furnish a copy of such
Letter of Credit to the Borrower promptly following the issuance thereof. The
Issuing Lender shall promptly furnish to the Administrative Agent, which shall
in turn promptly furnish to the Lenders, notice of the issuance of each Letter
of Credit (including the amount thereof).

                  3.3 FEES AND OTHER CHARGES.

                                      -40-
<PAGE>

                  (a) The Borrower will pay a fee on the aggregate drawable
amount of each outstanding Letter of Credit at a per annum rate equal to the
Applicable Margin then in effect with respect to Eurodollar Loans under the
Revolving Credit Facility, shared ratably among the Revolving Credit Lenders and
payable quarterly in arrears on each L/C Fee Payment Date after the issuance
date of such Letter of Credit. In addition, the Borrower shall pay to the
Issuing Lender for its own account a fronting fee as agreed between the Issuing
Lender and the Borrower.

                  (b) In addition to the foregoing fees, the Borrower shall pay
or reimburse the Issuing Lender for such normal and customary costs and expenses
as are incurred or charged by the Issuing Lender in issuing, negotiating,
effecting payment under, amending or otherwise administering any Letter of
Credit.

                  3.4 L/C PARTICIPATIONS.

                  (a) The Issuing Lender irrevocably agrees to grant and hereby
grants to each L/C Participant, and, to induce the Issuing Lender to issue
Letters of Credit hereunder, each L/C Participant irrevocably agrees to accept
and purchase and hereby accepts and purchases from the Issuing Lender, on the
terms and conditions hereinafter stated, for such L/C Participant's own account
and risk an undivided interest equal to such L/C Participant's Revolving Credit
Percentage in the Issuing Lender's obligations and rights under each Letter of
Credit issued hereunder and the amount of each draft paid by the Issuing Lender
thereunder. Each L/C Participant unconditionally and irrevocably agrees with the
Issuing Lender that, if a draft is paid under any Letter of Credit for which the
Issuing Lender is not reimbursed in full by the Borrower in accordance with the
terms of this Agreement, such L/C Participant shall pay to the Issuing Lender,
regardless of the occurrence or continuance of a Default or the failure to
satisfy any of the other conditions specified in Section 5, on the first
Business Day after demand, at the Issuing Lender's address for notices specified
herein an amount equal to such L/C Participant's Revolving Credit Percentage of
the amount of such draft, or any part thereof, that is not so reimbursed.

                  (b) If any amount required to be paid by any L/C Participant
to the Issuing Lender pursuant to Section 3.4(a) in respect of any unreimbursed
portion of any payment made by the Issuing Lender under any Letter of Credit is
paid to the Issuing Lender within three Business Days after the date such
payment is due, such L/C Participant shall pay to the Issuing Lender on demand
an amount equal to the product of (i) such amount, times (ii) the daily average
Federal Funds Effective Rate during the period from and including the date such
payment is required to the date on which such payment is immediately available
to the Issuing Lender, times (iii) a fraction the numerator of which is the
number of days that elapse during such period and the denominator of which is
360. If any such amount required to be paid by any L/C Participant pursuant to
Section 3.4(a) is not made available to the Issuing Lender by such L/C
Participant within three Business Days after the date such payment is due, the
Issuing Lender shall be entitled to recover from such L/C Participant, on
demand, such amount with interest thereon calculated from such due date at the
rate per annum applicable to Base Rate Loans under the Revolving Credit
Facility. A certificate of the Issuing Lender submitted to any L/C Participant
with respect to any amounts owing under this Section shall be conclusive in the
absence of manifest error.

                  (c) Whenever, at any time after the Issuing Lender has made
payment under any Letter of Credit and has received from any L/C Participant its
pro rata share of such payment in accordance with Section 3.4(a), the Issuing
Lender receives any payment related to such Letter of Credit (whether directly
from the Borrower or otherwise, including proceeds of collateral applied thereto
by the Issuing Lender), or any payment of interest on account thereof, the
Issuing Lender will distribute to such L/C Participant its pro rata share
thereof; PROVIDED, HOWEVER, that in the event that any such payment received by
the Issuing Lender shall be required to be returned by the Issuing Lender, such
L/C

                                      -41-
<PAGE>

Participant shall return to the Issuing Lender the portion thereof previously
distributed by the Issuing Lender to it.

                  3.5 REIMBURSEMENT OBLIGATION OF THE BORROWER. The Borrower
agrees to reimburse the Issuing Lender on each date on which the Issuing Lender
notifies the Borrower of the date and amount of a draft presented under any
Letter of Credit and paid by the Issuing Lender for the amount of (a) such draft
so paid and (b) any taxes, fees, charges or other costs or expenses incurred by
the Issuing Lender in connection with such payment (the amounts described in the
foregoing clauses (a) and (b) in respect of any drawing, collectively, the
"PAYMENT AMOUNT"). Each such payment shall be made to the Issuing Lender at its
address for notices specified herein in lawful money of the United States of
America and in immediately available funds. Interest shall be payable on each
Payment Amount from the date of the applicable drawing until payment in full at
the rate set forth in (i) until the second Business Day following the date of
the applicable drawing, Section 2.15(b) and (ii) thereafter, Section 2.15(c).
Each drawing under any Letter of Credit shall (unless an event of the type
described in clause (i) or (ii) of Section 8(f) shall have occurred and be
continuing with respect to the Borrower, in which case the procedures specified
in Section 3.4 for funding by L/C Participants shall apply) constitute a request
by the Borrower to the Administrative Agent for a borrowing pursuant to Section
2.5 of Base Rate Loans (or, at the option of the Administrative Agent and the
Swing Line Lender in their sole discretion, a borrowing pursuant to Section 2.7
of Swing Line Loans) in the amount of such drawing. The Borrowing Date with
respect to such borrowing shall be the first date on which a borrowing of
Revolving Credit Loans (or, if applicable, Swing Line Loans) could be made,
pursuant to Section 2.5 (or, if applicable, Section 2.7), if the Administrative
Agent had received a notice of such borrowing at the time of such drawing under
such Letter of Credit.

                  3.6 OBLIGATIONS ABSOLUTE. The Borrower's obligations under
this Section 3 shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to payment
that the Borrower may have or have had against the Issuing Lender, any
beneficiary of a Letter of Credit or any other Person. The Borrower also agrees
with the Issuing Lender that the Issuing Lender shall not be responsible for,
and the Borrower's Reimbursement Obligations under Section 3.5 shall not be
affected by, among other things, the validity or genuineness of documents or of
any endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee. The Issuing
Lender shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit. The Borrower agrees that
any action taken or omitted by the Issuing Lender under or in connection with
any Letter of Credit or the related drafts or documents, if done in accordance
with the standards or care specified in the Uniform Commercial Code of the State
of New York, shall be binding on the Borrower and shall not result in any
liability of the Issuing Lender to the Borrower.

                  3.7 LETTER OF CREDIT PAYMENTS. If any draft shall be presented
for payment under any Letter of Credit, the Issuing Lender shall promptly notify
the Borrower of the date and amount thereof. The responsibility of the Issuing
Lender to the Borrower in connection with any draft presented for payment under
any Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the
documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such
Letter of Credit.

                                      -42-
<PAGE>

                  3.8 APPLICATIONS. To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, the provisions of this Section 3 shall apply.

SECTION 4. REPRESENTATIONS AND WARRANTIES

                  To induce the Administrative Agent and the Lenders to enter
into this Agreement and to induce the Lenders to make the Loans and issue or
participate in the Letters of Credit, the Borrower hereby represents and
warrants to the Agents and Lenders that:

                  4.1 FINANCIAL CONDITION.

                  (a) The unaudited pro forma consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at June 30, 2003 (including the
notes thereto), copies of which have heretofore been furnished to each Lender,
has been prepared giving effect (as if such events had occurred on such date) to
(i) the consummation of the Facilities and the Preferred Stock issuance and (ii)
the payment of fees and expenses in connection with the foregoing (including
such adjustments, the "PRO FORMA BALANCE SHEET"). The Pro Forma Balance Sheet
has been prepared based on the best information available to the Borrower as of
the date of delivery thereof, and presents fairly on a pro forma basis the
estimated financial position of Borrower and its consolidated Subsidiaries as at
June 30, 2003, assuming that the events specified in the preceding sentence had
actually occurred at such date.

                  (b) The audited consolidated balance sheets of the Borrower
and its Subsidiaries as at December 29, 2002, December 30, 2001 and September
30, 2001, and the related consolidated statements of income and of cash flows
for the fiscal years, or in the case of the December 30, 2001 balance sheets,
the three-month transitional period, ended on such dates, reported on by and
accompanied by an unqualified report from KPMG LLP, present fairly in all
material respects the consolidated financial condition of the Borrower and its
Subsidiaries as at each such date, and the consolidated results of its
operations and its consolidated cash flows for the respective fiscal years, or
in the case of the December 30, 2001 balance sheets, the three-month
transitional period, then ended. The unaudited consolidated balance sheet of the
Borrower and its Subsidiaries as at June 30, 2003, and the related unaudited
consolidated statements of income and cash flows for the six-month period ended
on such date, present fairly in all material respects the consolidated financial
condition of the Borrower and its Subsidiaries as at such date, and the
consolidated results of its operations and its consolidated cash flows for the
six-month period then ended (subject to normal year-end audit adjustments). All
such financial statements, including the related schedules and notes thereto,
have been prepared in accordance with GAAP applied consistently throughout the
periods involved (except as approved by the aforementioned firm of accountants
and disclosed therein). The Borrower and its Subsidiaries have no material
Guarantee Obligations, contingent liabilities or liabilities for taxes, or any
long-term leases or unusual forward or long-term commitments, including any
interest rate or foreign currency swap or exchange transaction or other
obligation in respect of derivatives, that are not reflected in the most recent
financial statements referred to in this paragraph, to the extent same are
required to be so reflected. During the period from December 29, 2002 to and
including the Closing Date there has been no Disposition by any of the Borrower
or its Subsidiaries of any material part of its business or Property.

                  4.2 NO CHANGE. Since December 29, 2002, there has been no
development or event that has had or could reasonably be expected to have a
Material Adverse Effect.

                  4.3 EXISTENCE; COMPLIANCE WITH LAW. Except as set forth in
Schedule 4.3, each of the Borrower and its Subsidiaries (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the corporate or other applicable organizational power

                                      -43-
<PAGE>

and authority, and the legal right, to own and operate its Property, to lease
the Property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of Property or the conduct of its business requires such qualification
and (d) is in compliance with all Requirements of Law except to the extent that
the failure to comply therewith could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect.

                  4.4 POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS. Each Loan
Party has the corporate or other applicable organizational power and authority,
and the legal right, to make, deliver and perform the Loan Documents to which it
is a party and, in the case of the Borrower, to borrow hereunder. Each Loan
Party has taken all necessary corporate action to authorize the execution,
delivery and performance of the Loan Documents to which it is a party and, in
the case of the Borrower, to authorize the borrowings on the terms and
conditions of this Agreement. No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with the borrowings hereunder or with the
execution, delivery, performance, validity or enforceability of this Agreement
or any of the Loan Documents, except (i) consents, authorizations, filings and
notices that have been obtained or made and are in full force and effect and
(ii) the filings referred to in Section 4.19. The Loan Documents and the Senior
Subordinated Note Indenture have been duly executed and delivered on behalf of
each Loan Party party thereto. This Agreement constitutes, and each other Loan
Document and the Senior Subordinated Note Indenture constitutes or upon
execution will constitute, a legal, valid and binding obligation of each Loan
Party party thereto, enforceable against each such Loan Party in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

                  4.5 NO LEGAL BAR. The execution, delivery and performance of
this Agreement and the other Loan Documents, the issuance of Letters of Credit,
the borrowings hereunder and the use of the proceeds thereof will not violate
any Requirement of Law or any Contractual Obligation of the Borrower or any of
its Subsidiaries and will not result in, or require, the creation or imposition
of any Lien on any of their respective properties or revenues pursuant to any
Requirement of Law or any such Contractual Obligation (other than the Liens
created by the Security Documents). No Requirement of Law or Contractual
Obligation applicable to the Borrower or any of its Subsidiaries could
reasonably be expected to have a Material Adverse Effect.

                  4.6 NO MATERIAL LITIGATION. Except as set forth on Schedule
4.6, no  litigation,  investigation  or proceeding of or before any arbitrator
or Governmental  Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any of its  Subsidiaries or against any
of their  respective  properties or revenues  (a) with  respect to any of the
Loan Documents or any of the transactions contemplated hereby or thereby or (b)
that could reasonably be expected to have a Material Adverse Effect.

                  4.7 NO DEFAULT. Neither the Borrower nor any of its
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect that could reasonably be expected to have a Material
Adverse Effect. No Default has occurred and is continuing.

                  4.8 OWNERSHIP OF PROPERTY; LIENS. Each of the Borrower and its
Subsidiaries has good, marketable and insurable title in fee simple to, or a
valid leasehold interest in, all its material real property, and good title to,
or a valid leasehold interest in or adequate rights to use, all its other
material Property, and none of such material Property is subject to any Lien
except as permitted by Section 7.3.

                                      -44-
<PAGE>

                  4.9 INTELLECTUAL PROPERTY. The Borrower and each of its
Subsidiaries owns, or is licensed to use, all Intellectual Property necessary
for the conduct of its business as currently conducted. Except as set forth on
Schedule 4.9, no material claim has been asserted or is pending by any Person
challenging or questioning the use of any Intellectual Property or the validity
or effectiveness of any Intellectual Property, nor does the Borrower know of any
valid basis for any such claim. To the best knowledge of the Borrower, the use
of Intellectual Property by the Borrower and its Subsidiaries does not infringe
on the rights of any Person in any material respect.

                  4.10 TAXES. Each of the Borrower and its Subsidiaries has
filed or caused to be filed all Federal, state and other material tax returns
that are required to be filed and has paid all taxes shown to be due and payable
on said returns or on any assessments made against it or any of its Property and
all other material taxes, fees or other charges imposed on it or any of its
Property by any Governmental Authority (other than any the amount or validity of
which are currently 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 the Borrower or its Subsidiaries, as the case may be). The contents of
all such material tax returns are correct and complete in all material respects.
Except as set forth in Schedule 4.10, no tax Lien has been filed, and, to the
knowledge of the Borrower, no claim is being asserted, with respect to any such
tax, fee or other charge.

                  4.11 FEDERAL REGULATIONS. No part of the proceeds of the Loans
or Letters of Credit will be used for purchasing or carrying any "margin stock"
(within the meaning of Regulation U) or for the purpose of purchasing, carrying
or trading in any securities under such circumstances as to involve the Borrower
in a violation of Regulation X or to involve any broker or dealer in a violation
of Regulation T. No indebtedness being reduced or retired out of the proceeds of
the Loans or Letters of Credit was or will be incurred for the purpose of
purchasing or carrying any "margin stock" (within the meaning of Regulation U).
Following application of the proceeds of the Loans and Letters of Credit,
"margin stock" (within the meaning of Regulation U) does not constitute more
than 25% of the value of the assets of the Borrower and its Subsidiaries. None
of the transactions contemplated by this Agreement (including the direct and
indirect use of proceeds of the Loans and Letters of Credit) will violate or
result in a violation of Regulation T, Regulation U or Regulation X. If
requested by any Lender or the Administrative Agent, the Borrower will furnish
to the Administrative Agent and each Lender a statement to the foregoing effect
in conformity with the requirements of FR Form G-3 or FR Form U-1 referred to in
Regulation U.

                  4.12 LABOR MATTERS. There are no strikes, stoppages, slowdowns
or other labor disputes against the Borrower or any of its Subsidiaries pending
or, to the knowledge the Borrower, threatened that (individually or in the
aggregate) could reasonably be expected to have a Material Adverse Effect. Hours
worked by and payment made to employees of the Borrower and its Subsidiaries
have not been in violation of the Fair Labor Standards Act or any other
applicable Requirement of Law dealing with such matters that (individually or in
the aggregate) could reasonably be expected to have a Material Adverse Effect.
All payments due from the Borrower or any of its Subsidiaries on account of
employee health and welfare insurance that (individually or in the aggregate)
could reasonably be expected to have a Material Adverse Effect if not paid have
been paid or accrued as a liability on the books of the Borrower or the relevant
Subsidiary.

                  4.13 ERISA. Neither a Reportable Event nor an "ACCUMULATED
FUNDING DEFICIENCY" (within the meaning of Section 412 of the Code or Section
302 of ERISA) has occurred during the five-year period ending on the date on
which this representation is made or deemed made with respect to any Plan, and
each Plan has complied and has been administered in all material respects with
all applicable provisions of ERISA and the Code. During such five-year period,
(i) no termination of a Single Employer Plan has occurred, (ii) no filing of any
notice of intent to terminate a Single Employer Plan has been made, (iii) the
PBGC has not instituted any proceedings under Section 4042 of ERISA for the

                                      -45-
<PAGE>

termination of, or the appointment of a trustee to administer, any Single
Employer Plan and (iv) no Lien in favor of the PBGC or a Plan has arisen with
respect to any Plan. There exists no Unfunded Pension Liability (determined as
of the last applicable annual valuation date prior to the date on which this
representation is made or deemed made) with respect to Single Employer Plans in
the aggregate, taking into account only Single Employer Plans with positive
Unfunded Pension Liability, could reasonably be expected to be material. Each
Plan which is intended to be qualified under Section 401(a) of the Code has been
determined by the IRS to be so qualified, and, nothing has occurred since the
date of such determination that would adversely affect such determination. There
has been no failure to make a required contribution to any Plan that would
result in the imposition of an encumbrance under Section 412 of the Code or
Section 302 of ERISA and there has been no filing of any request for a minimum
funding waiver under Section 412 of the Code with respect to any Plan. No
non-exempt prohibited transaction within the meaning of Section 4975 of the Code
or Section 406 of ERISA has occurred with respect to any Plan that has resulted
or could reasonably be expected to result in a material liability to the
Borrower or any Subsidiary. Neither the Borrower nor any Commonly Controlled
Entity has incurred any liability under Title IV of ERISA with respect to any
Plan (other than premiums due and not delinquent under Section 4007 of ERISA).
Neither the Borrower nor any Commonly Controlled Entity has had a complete or
partial withdrawal from any Multiemployer Plan that has resulted or could
reasonably be expected to result in a material liability under ERISA, and
neither the Borrower nor any Commonly Controlled Entity would become subject to
any material liability under ERISA if the Borrower or any such Commonly
Controlled Entity were to withdraw completely from all Multiemployer Plans as of
the valuation date most closely preceding the date on which this representation
is made or deemed made. To the best knowledge of the Borrower, no such
Multiemployer Plan is in Reorganization or Insolvent.

                  4.14 INVESTMENT COMPANY ACT; OTHER REGULATIONS. No Loan Party
is an "investment company", or a company "controlled" by an "investment
company", within the meaning of the Investment Company Act of 1940, as amended.
No Loan Party is subject to regulation under any Requirement of Law (other than
Regulation X) which limits or conditions its ability to incur Indebtedness.

                  4.15 SUBSIDIARIES.

                  (a) The Subsidiaries listed on Schedule 4.15 constitute all
the Subsidiaries of the Borrower as of the Closing Date. Schedule 4.15 sets
forth as of the Closing Date the name and jurisdiction of formation of each
Subsidiary and, as to each such Subsidiary, the percentage and number of each
class of Capital Stock thereof owned by the Borrower and its Subsidiaries.

                  (b) As of the Closing Date, none of the Borrower or any of its
Subsidiaries has issued, or authorized the issuance of, any Disqualified Stock.

                  4.16 USE OF PROCEEDS.

                  (a) The proceeds of the Term Loans shall be used solely to (i)
finance the KXOL Acquisition, (ii) pay costs and expenses incurred in connection
with the Facilities and with the Borrower's issuance of the Preferred Stock (to
be set forth on the Closing Date on a sources and uses table attached hereto as
Schedule 4.16(a)), (iii) provide excess cash to the Borrower and (iv) fund
working capital purposes, capital needs and general corporate purposes of the
Borrower and its Subsidiaries.

                  (b) The proceeds of the Revolving Credit Loans, the Swing Line
Loans and the Letters of Credit shall be used for working capital purposes,
capital needs and general corporate purposes of the Borrower and its
Subsidiaries.

                                      -46-
<PAGE>

                  4.17 ENVIRONMENTAL MATTERS. Other than exceptions to any of
the following that could not, individually or in the aggregate, reasonably be
expected to result in the payment of a Material Environmental Amount:

                  (a) The Borrower and its Subsidiaries (i) are, and within the
period of all applicable statutes of limitation have been, in compliance with
all applicable Environmental Laws; and (ii) reasonably believe that compliance
with any Environmental Law that is or is expected to become applicable to any of
them will be timely attained and maintained, without material expense.

                  (b) Materials of Environmental Concern are not present at, on,
under, in, or about any real property now or formerly owned, leased or operated
by the Borrower or any of its Subsidiaries, or at any other location (including
any location to which Materials of Environmental Concern have been sent for
re-use or recycling or for treatment, storage, or disposal) which could
reasonably be expected to (i) give rise to liability of the Borrower or any of
its Subsidiaries under any applicable Environmental Law, or (ii) interfere with
the Borrower's or any of its Subsidiaries' continued operations, or (iii) impair
the fair saleable value of any real property owned or leased by the Borrower or
any of its Subsidiaries.

                  (c) There is no judicial, administrative or arbitral
proceeding (including any notice of violation or alleged violation) under or
relating to any Environmental Law to which the Borrower or any of its
Subsidiaries is, or to the knowledge of the Borrower will be, named as a party
that is pending or, to the knowledge of the Borrower, threatened.

                  (d) Neither the Borrower nor any of its Subsidiaries has
received any written request for information, or been notified that it is a
potentially responsible party under or relating to the federal Comprehensive
Environmental Response, Compensation, and Liability Act or any similar
Environmental Law, or with respect to any Materials of Environmental Concern.

                  (e) Neither the Borrower nor any of its Subsidiaries has
entered into or agreed to any consent decree, order, or settlement or other
agreement, or is subject to any judgment, decree, or order or other agreement,
in any judicial, administrative, arbitral, or other forum for dispute
resolution, relating to compliance with or liability under any Environmental
Law.

                  (f) Neither the Borrower nor any of its Subsidiaries has
assumed or retained, by contract or operation of law, any liabilities of any
kind, fixed or contingent, known or unknown, under any Environmental Law or with
respect to any Material of Environmental Concern.

                  4.18 ACCURACY OF INFORMATION, ETC. No statement or information
contained in this Agreement, any other Loan Document, the Confidential
Information Memorandum or any other document, certificate or statement furnished
to the Arranger, any Agent or any Lender by or on behalf of the Borrower or any
of its Subsidiaries for use in connection with the transactions contemplated by
this Agreement or the other Loan Documents, contained as of the date such
statement, information, document or certificate was so furnished (or, in the
case of the Confidential Information Memorandum, as of the date of this
Agreement), any untrue statement of a material fact or omitted to state a
material fact necessary in order to make the statements contained herein or
therein not misleading. The projections and pro forma financial information
contained in the materials referenced above are based upon good faith estimates
and assumptions believed by management of the Borrower to be reasonable at the
time made, it being recognized by the Lenders that such financial information as
it relates to future events is not to be viewed as fact and that actual results
during the period or periods covered by such financial information may differ
from the projected results set forth therein by a material amount. There is no
fact known to the Borrower or any of its Subsidiaries that could reasonably be
expected to have a Material Adverse Effect that has not been expressly disclosed
herein, in the other Loan Documents, in the Confidential

                                      -47-
<PAGE>

Information Memorandum or in any other documents, certificates and written
statements furnished to the Arranger, the Agents and the Lenders for use in
connection with the transactions contemplated hereby and by the other Loan
Documents.

                  4.19 SECURITY DOCUMENTS.

                  (a) The Guarantee and Collateral Agreement is effective to
create in favor of the Administrative Agent, for the benefit of the Secured
Parties, a legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof. In the case of the Pledged Securities
(described, and as defined, in the Guarantee and Collateral Agreement), when any
certificates, notes or other instruments representing such Pledged Securities
are delivered to the Administrative Agent, and in the case of the other
Collateral described in the Guarantee and Collateral Agreement (other than
Intellectual Property, which is addressed in paragraph (b) of this Section
4.19), when financing statements in appropriate form are filed in the offices
specified on Schedule 4.19 (which financing statements have been duly authorized
and completed by the Administrative Agent), the Guarantee and Collateral
Agreement shall constitute a fully perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties in such Collateral and the
proceeds thereof as security for the Obligations, in each case prior and
superior in right to any other Person, except, in the case of Collateral other
than Pledged Securities, Liens permitted by Section 7.3.

                  (b) The Intellectual Property Security Agreements are
effective to create in favor of the Administrative Agent, for the benefit of the
Secured Parties, a legal, valid and enforceable security interest in the
Intellectual Property Collateral described therein and proceeds thereof. Upon
the filing of (i) the Patent Security Agreement Supplement and the Trademark
Security Agreement Supplement in the appropriate indexes of the United States
Patent and Trademark Office relative to patents and trademarks, respectively
(within three (3) months after the Closing Date), and the Copyright Security
Agreement Supplement in the appropriate indexes of the United States Copyright
Office relative to copyrights (within thirty (30) days after the Closing Date),
together with provision for payment of all requisite fees, and (ii) financing
statements in appropriate form for filing in the offices specified on Schedule
4.19 (which financing statements have been duly completed and executed by the
Administrative Agent), the Intellectual Property Security Agreements shall
constitute a fully perfected Lien on, and security interest in, all right, title
and interest of the Loan Parties in the Intellectual Property Collateral and the
proceeds and products thereof, as security for the Obligations, in each case
prior and superior in right to any other Person (it being understood that
subsequent recordings in the United States Patent and Trademark Office and the
United States Copyright Office may be necessary to perfect a Lien on any
After-Acquired Intellectual Property (as defined in the Guarantee and Collateral
Agreement)), except Liens permitted by Section 7.3.

                  4.20 SOLVENCY. Each Loan Party is, and after giving effect to
the incurrence of all Indebtedness and obligations being incurred in connection
with the Loan Documents, the Preferred Stock issuance and the KXOL Acquisition
will be and will continue to be, Solvent.

                  4.21 SENIOR INDEBTEDNESS. The Obligations (including the
Guarantee Obligations of each Subsidiary Guarantor under the Guarantee and
Collateral Agreement) constitute "SENIOR DEBT" and "DESIGNATED SENIOR DEBT"
under and as defined in the Senior Subordinated Note Indenture and, as and when
issued in accordance with this Agreement, Exchange Subordinated Debt or, if
applicable, Indebtedness incurred in a Permitted Refinancing (under clause (1)
of the definition of such term) and constitute Indebtedness permitted to exist
under the Senior Subordinated Note Indenture and, as and when issued in
accordance with this Agreement, the Exchange Subordinated Debt or Indebtedness
incurred in a Permitted Refinancing. The provisions of Article Ten of the Senior
Subordinated Note Indenture and as and when issued in accordance with this
Agreement, Article Ten of the indenture that will govern the

                                      -48-
<PAGE>

Exchange Subordinated Debt or (if such Indebtedness is Subordinated Debt) the
subordination provisions of such Indebtedness, are enforceable by each Lender
and each other holder of Obligations in accordance with their terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

                  4.22 INSURANCE. Each of the Borrower and its Subsidiaries is
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in
which it is engaged; and none of the Borrower or any of its Subsidiaries (a) has
received notice from any insurer or agent of such insurer that substantial
capital improvements or other material expenditures will have to be made in
order to continue such insurance or (b) has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers at a cost that could
not reasonably be expected to have a Material Adverse Effect. The Administrative
Agent, as agent for the Lenders, has been named as loss payee on all property
and casualty insurance policies for the benefit of any Loan Party and as
additional insured on all liability insurance policies for the benefit of any
Loan Party.

                  4.23 PERMITS AND LICENSES.

                  (a) The FCC Licenses held by the Borrower and its Subsidiaries
constitute all of the licenses, permits and other authorizations issued by the
FCC that are necessary for the Borrower and its Subsidiaries to conduct their
business in the manner in which it is currently being conducted.

                  (b) All FCC Licenses relating to the business of the Borrower
and its Subsidiaries are in full force and effect, valid for the balance of the
license terms normally applicable to radio stations licensed to the states in
which the stations are licensed, and are not subject to any conditions outside
the ordinary course. The stations subject to such FCC Licenses are operating,
and have been operated since their construction or acquisition by the Borrower
or any of its Subsidiaries, in material compliance with the Communications Act,
the FCC's rules, regulations and written policies promulgated thereunder and
with the terms of the FCC Licenses. As of the Closing Date, (i) neither the
Borrower nor any Subsidiary has received any notice of apparent liability,
notice of violation, order to show cause or other writing from the FCC that may
lead to any liability or sanction by the FCC and (ii) there is no proceeding
pending by or before the FCC relating to the Borrower or any Subsidiary or any
station, nor, to the best knowledge of the Borrower or any Subsidiary, is any
such proceeding threatened and no complaint or investigation is pending or
threatened by or before the FCC (other than rulemaking proceedings of general
applicability to which the Borrower and its Subsidiaries and the stations are
not parties). The Borrower and its Subsidiaries have timely filed all required
reports and notices with the FCC and have paid all amounts due in timely fashion
on account of fees and charges to the FCC.

                  (c) All FCC Licenses relating to the business of the Borrower
and its Subsidiaries (except, to the extent elected by the Borrower, FCC
Licenses that are owned solely by one or more of the Excluded Foreign
Subsidiaries and relate solely to the business conducted by any of the Excluded
Foreign Subsidiaries) are held by one or more Broadcast License Subsidiaries.

                  (d) Other than exceptions to any of the following that could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect (or, in the case of Environmental Permits, result in the payment
of a Material Environmental Amount) (i) each of the Borrower and its
Subsidiaries has obtained and holds all Permits required for any property owned,
leased or otherwise operated by or on behalf of, or for the benefit of, such
Person and for the operation of each of its businesses as presently conducted
and as proposed to be conducted, (ii) all such Permits are in full force and
effect, and each of the Borrower and its Subsidiaries has performed and observed
all requirements of

                                      -49-
<PAGE>

such Permits, (iii) no event has occurred which allows or results in, or after
notice or lapse of time would allow or result in, revocation or termination by
the issuer thereof or in any other impairment of the rights of the holder of any
such Permit, (iv) none of such Permits contain any restrictions, either
individually or in the aggregate, that are materially burdensome to the Borrower
or any of its Subsidiaries, or to the operation of any of their respective
businesses or any property owned, leased or otherwise operated by such Person,
(v) each of the Borrower and its Subsidiaries reasonably believes that each of
its Permits will be timely renewed and complied with, without material expense,
and that any additional Permits that may be required of such Person will be
timely obtained and complied with, without material expense, and (vi) the
Borrower has no knowledge or reason to believe that any Governmental Authority
is considering limiting, suspending, revoking or renewing on materially
burdensome terms any such Permit.

                  (e) No consent or authorization of, filing with or Permit
from, or other act by or in respect of, any Governmental Authority is required
in connection with the execution, delivery, performance, validity or
enforceability of this Agreement and the other Loan Documents other than FCC
approval of the transfer of FCC Licenses to Broadcast License Subsidiaries,
which (except in the case of FCC Licenses owned solely by one or more of the
Excluded Foreign Subsidiaries and relating solely to the business conducted by
any of the Excluded Foreign Subsidiaries that the Borrower has not transferred
to a Broadcast License Subsidiary) has been obtained.

SECTION 5. CONDITIONS PRECEDENT

                  5.1 CONDITIONS TO INITIAL EXTENSION OF CREDIT. The agreement
of each Lender to make the initial extension of credit requested to be made by
it is subject to the satisfaction, prior to or concurrently with the making of
such extension of credit on the Closing Date and in any event on or before
November 15, 2003, of the following conditions precedent:

                  (a) Loan Documents. The Administrative Agent shall have
received (i) this Agreement, executed and delivered by a duly authorized officer
of the Borrower, (ii) the Guarantee and Collateral Agreement, executed and
delivered by a duly authorized officer of the Borrower and each Subsidiary
Guarantor, (iii) each Intellectual Property Security Agreement, executed and
delivered by a duly authorized officer of the Borrower and each Subsidiary
Guarantor, and (iv) if requested by any Lender, for the account of such Lender,
Notes conforming to the requirements hereof and executed and delivered by a duly
authorized officer of the Borrower.

                  (b) Pro Forma Balance Sheet; Financial Statements. The Lenders
shall have received (i) the Pro Forma Balance Sheet, (ii) audited consolidated
financial statements of the Borrower and its Subsidiaries for the 2002 and 2001
fiscal years and the three-month transitional period ended December 30, 2001 and
(iii) unaudited interim consolidated financial statements of the Borrower and
its Subsidiaries for the fiscal quarters ended March 31, 2003 and June 30, 2003,
and such financial statements shall not, in the reasonable judgment of the
Lenders, reflect any material adverse change in the consolidated financial
condition of the Borrower and its Subsidiaries, as reflected in the financial
statements or projections contained in the Confidential Information Memorandum.

                  (c) Approvals. All governmental and third-party approvals
necessary or, in the discretion of the Administrative Agent, reasonably
appropriate in connection with the continuing operations of the Borrower and its
Subsidiaries and the transactions contemplated hereby shall have been obtained
and be in full force and effect, and all applicable waiting periods shall have
expired without any action being taken or threatened by any competent authority
that would restrain, prevent or otherwise impose adverse conditions on the
financing contemplated hereby.

                                      -50-
<PAGE>

                  (d) Related Agreements. The Administrative Agent shall have
received (in a form and substance reasonably satisfactory to the Administrative
Agent), with a copy for each Lender, true and correct copies, certified as to
authenticity by the Borrower, of the KXOL Acquisition Agreement, and all
material Acquisition Documentation related thereto.

                  (e) Fees. The Arranger, the Agents and the Lenders shall have
received all amounts payable under the Fee Letter on or before the Closing Date,
and the Administrative Agent shall have received, to the extent payable under
this Agreement or the Commitment Letter, reimbursement of all reasonable
out-of-pocket expenses of the Arranger and the Administrative Agent invoiced to
and payable by the Borrower on or prior to the Closing Date in connection with
the transactions contemplated by the Facilities.

                  (f) Business Plan. The Lenders shall have received a business
plan of the Borrower and its Subsidiaries for the fiscal years 2004 through and
including 2009.

                  (g) Solvency. The Lenders shall have received a Solvency
Certificate executed by the chief financial officer of the Borrower.

                  (h) Lien Searches. The Administrative Agent shall have
received the results of recent lien, tax lien and other searches in each of the
jurisdictions or offices (including in the United States Patent and Trademark
Office and the United States Copyright Office) in which Uniform Commercial Code
financing statements or other filings or recordations should be made to evidence
or perfect security interests in the Collateral, which results reveal no Liens
on any of the Property of the Borrower or any of its Subsidiaries other than
Liens permitted by Section 7.3 or Liens to be discharged on or prior to the
Closing Date pursuant to documentation satisfactory to the Administrative Agent.

                  (i) Closing Certificate. The Administrative Agent shall have
received a certificate of each Loan Party, dated as of the Closing Date,
substantially in the form of Exhibit H, with appropriate insertions and
attachments.

                  (j) Other Certifications. The Administrative Agent shall have
received the following:

                           (i) a copy of the Governing Documents of each Loan
         Party, certified (as of a date reasonably near the Closing Date) as
         being a true and correct copy thereof by the Secretary of State or
         other applicable Governmental Authority of the jurisdiction in which
         such Loan Party is organized;

                           (ii) a copy of a good standing certificate of the
         Secretary of State or other applicable Governmental Authority of the
         jurisdiction in which each Loan Party is organized, dated reasonably
         near the Closing Date, and

                           (iii) as requested by the Administrative Agent, a
         copy of a good standing certificate of the Secretary of State or other
         applicable Governmental Authority of any jurisdiction in which the
         Borrower or any of its Subsidiaries is qualified as a foreign
         corporation or entity, dated reasonably near the Closing Date.

                  (k) Legal Opinions. The Lenders shall have received the legal
opinion of Kaye Scholer LLP, counsel to the Borrower and its Subsidiaries, and
of local counsel for the Borrower, in each case, covering such matters incident
to the transactions contemplated by this Agreement as the

                                      -51-
<PAGE>

Administrative Agent may reasonably require and in form and substance reasonably
satisfactory to the Administrative Agent.

                  (l) Pledged Collateral. The Administrative Agent shall have
received the certificates, notes and other instruments representing the Pledged
Securities pledged pursuant to the Guarantee and Collateral Agreement, all
endorsed in blank (or accompanied by an executed transfer form in blank
satisfactory to the Administrative Agent) by the pledgor thereof.

                  (m) Filings, Registrations and Recordings. The Administrative
Agent shall have received, in proper form for filing, registration or
recordation, each Mortgage and each other document (including Uniform Commercial
Code financing statements) required by the Security Documents or under law or
reasonably requested by the Administrative Agent to be filed, registered or
recorded in order to evidence or perfect the Liens granted to the Administrative
Agent in the Security Documents, and all documents described in Section 6.10(b)
as to the parcels of real estate listed on Schedule 5.1(m), and the Borrower
shall have paid all recording costs, title insurance premiums and other amounts
in connection therewith.

                  (n) Insurance. The Administrative Agent shall have received
insurance certificates satisfying the requirements of Section 6.5(b).

                  (o) Consolidated EBITDA. The Administrative Agent shall have
received a certificate of a Responsible Officer of the Borrower stating that
Consolidated EBITDA for the 12-month period ended June 30, 2003 was at least
$41,500,000.

                  (p) KXOL Acquisition. Concurrently with the funding of the
Term Loans, the closing of the KXOL Acquisition shall occur (with no waivers,
amendments or other modifications to the KXOL Acquisition Agreement except those
as may be acceptable to the Administrative Agent).

                  (q) Preferred Stock Issuance. The Borrower shall have issued
the Preferred Stock having an aggregate liquidation value and for cash
consideration of at least $75,000,000, on terms reasonably acceptable to the
Arranger.

                  (r) Ratings. The Term Loan Facility shall have been rated at
least (i) B+ by S&P and (ii) B1 by Moody's.

                  (s) Environmental Matters. The Lenders shall be satisfied with
the environmental affairs of the Borrower and its Subsidiaries of the parcels of
real estate listed on Schedule 5.1(m).

                  (t) Miscellaneous. The Administrative Agent shall have
received such other documents, agreements, certificates and information as it
may reasonably request.

                  5.2 CONDITIONS TO EACH EXTENSION OF CREDIT. The agreement of
each Lender to make any extension of credit requested to be made by it on any
date (including its initial extension of credit) is subject to the satisfaction
of the following conditions precedent:

                  (a) Representations and Warranties. Each of the
representations and warranties made by any Loan Party in or pursuant to the Loan
Documents shall be true and correct in all material respects on and as of such
date as if made on and as of such date.

                  (b) No Default. No Default shall have occurred and be
continuing on such date or after giving effect to the extensions of credit
requested to be made on such date.

                                      -52-
<PAGE>

                  (c) Pro Forma Financial Covenant Compliance. After giving
effect to such extension of credit and the application of the proceeds thereof
as if they had occurred on the last day of the fiscal quarter of the Borrower
then most recently ended, the Consolidated Leverage Ratio and the Consolidated
Senior Secured Debt Ratio shall not exceed the maximum ratios that would have
been permitted under Sections 7.1(c) and (e), respectively, as of such day.

SECTION 6. AFFIRMATIVE COVENANTS

                  The Borrower hereby agrees that, so long as any of the
Commitments remain in effect, any Letter of Credit remains outstanding or any of
the principal of or interest on any Loan or Reimbursement Obligation is
outstanding, the Borrower shall and shall cause each of its Subsidiaries to:

                  6.1 FINANCIAL STATEMENTS. Furnish to the Administrative Agent
and each Lender:

                  (a) as soon as available, but in any event within 90 days
after the end of each fiscal year of the Borrower, a copy of the audited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at the end of such year and the related audited consolidated statements of
income and of cash flows for such year, setting forth in each case in
comparative form the figures for the previous year, reported on without a "going
concern" or like qualification or exception, or qualification arising out of the
scope of the audit, by KPMG LLP or other independent certified public
accountants of nationally recognized standing; and

                  (b) as soon as available, but in any event not later than 45
days after the end of each of the first three quarterly periods of each fiscal
year of the Borrower, the unaudited consolidated balance sheet of the Borrower
and its consolidated Subsidiaries as at the end of such quarter and the related
unaudited consolidated statements of income and of cash flows for such quarter
and the portion of the fiscal year through the end of such quarter, setting
forth in each case in comparative form the figures for the previous year,
certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments and the absence of
footnotes).

                  6.2 CERTIFICATES; OTHER INFORMATION. Furnish to the
Administrative Agent and each Lender, or, in the case of Section 6.2(j), to the
relevant Lender:

                  (a) concurrently with the delivery of the financial statements
referred to in Section 6.1(a), a certificate of the independent certified public
accountants reporting on such financial statements stating that in making the
examination necessary therefor no knowledge was obtained of any Default arising
under Section 7.1 or Section 7.7, except as specified in such certificate;

                  (b) concurrently with the delivery of any financial statements
pursuant to Section 6.1, (i) a certificate of a Responsible Officer stating
that, to the best of such Responsible Officer's knowledge, each Loan Party
during such period has observed or performed all of its covenants and other
agreements, and satisfied every condition, contained in this Agreement and the
other Loan Documents to which it is a party to be observed, performed or
satisfied by it, and that such Responsible Officer has obtained no knowledge of
any continuing Default except as specified in such certificate, (ii) in the case
of quarterly or annual financial statements, a Compliance and Pricing
Certificate containing all information and calculations necessary for
determining compliance by the Borrower and its Subsidiaries with the provisions
of this Agreement referred to therein as of the last day of the fiscal quarter
or fiscal year of the Borrower, as the case may be, and (iii) in the case of
annual financial statements, to the extent not previously disclosed to the
Administrative Agent in writing, a listing of any Intellectual Property acquired
by any Loan Party since the date of the most recent list delivered pursuant to
this clause (iii) (or, in the case of the first such list so delivered, since
the Closing Date);

                                      -53-
<PAGE>

                  (c) as soon as available, and in any event no later than 45
days after the end of each fiscal year of the Borrower, for the following fiscal
year, a detailed projected income statement, a projected condensed statement of
cash flows, and a projected condensed consolidated balance sheet, and, as soon
as available, significant revisions, if any, of such projections with respect to
such following fiscal year (collectively, the "PROJECTIONS"), which Projections
shall in each case be accompanied by a certificate of a Responsible Officer
stating that such Projections have been approved by the board of directors of
the Borrower, it being recognized that such Projections are not to be viewed as
fact and that actual results during the subject fiscal year may differ from the
projected results set forth therein by a material amount;

                  (d) within 45 days after the end of each fiscal quarter of the
Borrower, the information required to be set forth in a quarterly report on Form
10-Q filed pursuant to Section 13 of the Securities Exchange Act of 1934, as
amended;

                  (e) within five Business Days after the same are sent, copies
of all financial statements and reports that the Borrower or any of its
Subsidiaries sends to the holders of any class of its debt securities or public
equity securities and, within five days after the same are filed, copies of all
financial statements and reports that the Borrower or any of its Subsidiaries
may make to, or file with, the SEC;

                  (f) as soon as possible and in any event within five Business
Days of obtaining knowledge thereof, (i) notice of any development, event, or
condition that, individually or in the aggregate with other developments, events
or conditions, could reasonably be expected to result in the payment by the
Borrower or any of its Subsidiaries, in the aggregate, of a Material
Environmental Amount; and (ii) any notice that any Governmental Authority may
deny any application for an Environmental Permit or any other material Permit
held by the Borrower or any of its Subsidiaries on terms and conditions that are
materially burdensome to the Borrower or any of its Subsidiaries, or to the
operation of any of its businesses or any Property owned, leased or otherwise
operated by such Person;

                  (g) on the date of the occurrence thereof, notice that (i) any
or all of the obligations under the Senior Subordinated Note Indenture have been
accelerated or (ii) the trustee or the required holders of Senior Subordinated
Notes has given notice that any or all such obligations are to be accelerated;

                  (h) to the extent not included in clauses (a) through (h)
above, no later than the date the same are delivered thereunder, copies of all
agreements, documents or other instruments (including (i) audited and unaudited,
pro forma and other financial statements, reports, forecasts, and projections,
together with any required certifications thereon by independent public auditors
or officers of the Borrower or any of its Subsidiaries or otherwise, (ii) press
releases, (iii) statements or reports furnished to any other holder of the
securities of the Borrower or any of its Subsidiaries and (iv) regular, periodic
and special securities reports), in each case, that the Borrower or any of its
Subsidiaries is required to provide pursuant to the terms of the Senior
Subordinated Note Indenture;

                  (i) (i) promptly and in any event within fifteen days after
the Borrower, any Subsidiary or any Commonly Controlled Entity files a Schedule
B (or such other schedule as contains actuarial information) to IRS Form 5500 in
respect of any Plan with Unfunded Pension Liabilities, a copy of such IRS Form
5500 (including the Schedule B);

                           (ii) promptly and in any event within thirty days
         after the Borrower, any Subsidiary or any Commonly Controlled Entity
         knows or has reason to know that any event described in Section 8(g)
         (an "ERISA EVENT") that, individually or when aggregated with any other
         ERISA Event, could reasonably be expected to have a Material Adverse
         Effect has

                                      -54-
<PAGE>

         occurred, the written statement of a Responsible Officer of such
         Person, as applicable, describing such ERISA Event and the action, if
         any, that it proposes to take with respect thereto and a copy of any
         notice filed with the PBGC or the IRS pertaining thereto; and

                           (iii) promptly and in any event within thirty days
         after the Borrower, any Subsidiary or any Commonly Controlled Entity
         becoming aware of any of the following a detailed written description
         thereof from a Responsible Officer of such Person: (w) a material
         increase in Unfunded Pension Liabilities, taking into account only
         Single Employer Plans with positive Unfunded Pension Liabilities, (x)
         the existence of potential withdrawal liability under Section 4201 of
         ERISA, if the Company and the Commonly Controlled Entities were to
         completely or partially withdraw from all Multiemployer Plans, (y) the
         adoption of, or the commencement of contributions to, any Plan subject
         to Section 412 of the Code by Borrower, any Subsidiary or any Commonly
         Controlled Entity or (z) the adoption of any amendment to a Plan
         subject to Section 412 of the Code that could result in a material
         increase in contribution obligations of Borrower, any Subsidiary or
         Commonly Controlled Entity; and

                  (j) promptly, such additional financial and other information
as any Lender may from time to time reasonably request.

                  6.3 PAYMENT OF OBLIGATIONS. Pay, discharge or otherwise
satisfy at or before maturity or before they become delinquent, as the case may
be, all its material obligations of whatever nature, if the failure to do so
could reasonably be expected to have a Material Adverse Effect.

                  6.4 CONDUCT OF BUSINESS AND MAINTENANCE OF EXISTENCE, FCC
LICENSES, ETC.

                  (a) Preserve, renew and keep in full force and effect its
corporate existence and take all reasonable action to maintain all rights,
privileges and franchises necessary or desirable in the normal conduct of its
business, except as otherwise permitted by Section 7.4 and except to the extent
that failure to take any such action could not reasonably be expected to have a
Material Adverse Effect;

                  (b) Duly perform and observe its obligations under the KXOL
Acquisition Agreement, and comply with all other Contractual Obligations and all
Requirements of Law except to the extent that failure to comply with such other
Contractual Obligations and Requirements of Law could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect; and

                  (c) Operate all of the Stations in material compliance with
the Communications Act and the FCC's rules, regulations and written policies
promulgated thereunder and with the terms of the FCC Licenses, timely file all
required reports and notices with the FCC and pay all amounts due in timely
fashion on account of fees and charges to the FCC, timely file and prosecute all
applications for renewal or for extension of time with respect to all of the FCC
Licenses and advise the Administrative Agent of any deviation from the foregoing
and of any written communication from the FCC outside the ordinary course.

                  6.5 MAINTENANCE OF PROPERTY; INSURANCE.

                  (a) Keep all material Property and systems useful and
necessary in its business in good working order and condition, ordinary wear and
tear and damage by casualty excepted.

                  (b) Maintain with financially sound and reputable insurance
companies insurance on all its Property (including all inventory, equipment and
vehicles) in at least such amounts and against at

                                      -55-
<PAGE>
least such risks as are usually insured against in the same general area by
companies engaged in the same or a similar business; and furnish to the
Administrative Agent with copies for each Lender, upon written request, full
information as to the insurance carried. All insurance shall provide that no
cancellation, material reduction in amount or material change in coverage
thereof shall be effective until at least 30 days (10 days in the case of
non-payment) after receipt by the Administrative Agent of written notice
thereof. The Administrative Agent for its own benefit and for the benefit of the
Lenders shall be named as additional insured on all such liability insurance
policies, and the Administrative Agent shall be named as loss payee on all
property and casualty insurance policies.

                  (c) Deliver to the Administrative Agent (i) on the Closing
Date, a certificate dated such date showing the amount and types of insurance
coverage as of such date, (ii) upon request of the Administrative Agent from
time to time, full information as to the insurance carried, (iii) forthwith,
notice of any cancellation or nonrenewal of coverage, (iv) promptly after such
information is available to any of the Borrower or any of its Subsidiaries, full
information as to any claim for an amount in excess of $5,000,000 with respect
to any property and casualty insurance policy maintained by any of the Borrower
or its Subsidiaries and (v) concurrently with the delivery of its audited
financial statements for each fiscal year, a report of a reputable insurance
broker with respect to such insurance and such supplemental reports with respect
thereto as the Administrative Agent may from time to time reasonably request.

                  6.6 INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS.

                  (a) Keep proper books of records and account in which full,
true and correct entries in conformity with GAAP and all Requirements of Law
shall be made of all dealings and transactions in relation to its business and
activities; and

                  (b) permit representatives of the Administrative Agent or any
Lender (with respect to visits by any Lender more frequent than once in any
calendar year, if no Default is continuing, at such Lender's expense) to visit
and inspect any of its properties and examine and, at the Borrower's expense,
make abstracts from any of its books and records at any reasonable time, upon
reasonable notice and as often as may reasonably be desired and to discuss the
business, operations, Properties and financial and other condition of the
Borrower and its Subsidiaries with officers and employees of the Borrower and
its Subsidiaries and with their respective independent certified public
accountants.

                  6.7 NOTICES. Promptly give notice to the Administrative Agent
and each Lender of:

                  (a) the occurrence of any Default or Event of Default;

                  (b) the occurrence of any "Event of Default" or term of
similar meaning under the Senior Subordinated Note Indenture or the KXOL
Acquisition Agreement;

                  (c) any termination, amendment or modification of, or other
change in, the Senior Subordinated Note Indenture, the Certificates of
Designation, the Exchange Subordinated Debt, any Indebtedness incurred in a
Permitted Refinancing, the KXOL Acquisition Agreement or any other Acquisition
Documentation, or any material default thereunder by any party thereto;

                  (d) any (i) default or event of default under any other
Contractual Obligation of the Borrower or any of its Subsidiaries or (ii)
litigation, investigation or proceeding that may exist at any time between the
Borrower or any of its Subsidiaries and any Governmental Authority, that in
either case, if not cured or if adversely determined, as the case may be, could
reasonably be expected to have a Material Adverse Effect;

                                      -56-
<PAGE>

                  (e) any litigation or proceeding affecting the Borrower or any
of its Subsidiaries in which the amount involved is $5,000,000 or more and not
covered by insurance or in which injunctive or similar relief is sought;

                  (f) the following events, as soon as possible and in any event
within 30 days after the Borrower or any of its Subsidiaries knows or has reason
to know thereof: (i) the occurrence of any Reportable Event with respect to any
Plan, a failure to make any required contribution to a Plan, the creation of any
Lien in favor of the PBGC or a Plan or any withdrawal from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan, in each case in
connection with or involving an amount that could reasonably be expected to have
a Material Adverse Effect, or (ii) the institution of proceedings or the taking
of any other action by the PBGC or the Borrower or any Commonly Controlled
Entity or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan; and

                  (g) any other development or event that has had or could
reasonably be expected to have a Material Adverse Effect.

Each notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the Borrower or the relevant Subsidiary proposes to take
with respect thereto.

                  6.8 ENVIRONMENTAL LAWS. In each of the following cases, except
as could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect:

                  (a) Comply in all material respects with, and ensure
compliance in all material respects by all tenants and subtenants, if any, with,
all applicable Environmental Laws and Environmental Permits, and obtain,
maintain and comply in all material respects with and maintain, and ensure that
all tenants and subtenants obtain, maintain and comply in all material respects
with and maintain, any and all Environmental Permits.

                  (b) Conduct and complete all investigations, studies, sampling
and testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply in all material respects with all lawful
orders and directives of all Governmental Authorities regarding Environmental
Laws.

                  6.9 BROADCAST LICENSE SUBSIDIARIES.

                  (a) Cause all FCC Licenses (except, at the option of the
Borrower, FCC Licenses that are owned solely by one or more of the Excluded
Foreign Subsidiaries and relate solely to the business conducted by any of the
Excluded Foreign Subsidiaries) to be owned and held at all times by one or more
Broadcast License Subsidiaries.

                  (b) Ensure that each Broadcast License Subsidiary engages only
in the business of holding FCC Licenses and rights related thereto and that such
restriction is set forth in the Governing Documents of such Broadcast License
Subsidiary.

                  (c) Cause its financial statements, through appropriate
footnote disclosure, to indicate that the FCC Licenses (except, if applicable,
any FCC Licenses that are owned solely by one or more of the Excluded Foreign
Subsidiaries and relate solely to the business conducted by any of the Excluded
Foreign Subsidiaries) are held by one or more Broadcast License Subsidiaries.

                                      -57-
<PAGE>

                  (d) Conduct its affairs strictly in accordance with its
Governing Documents and observe all necessary, appropriate, and customary
corporate, limited liability company and other organizational formalities,
including keeping separate and accurate minutes of meetings of its board of
directors, shareholders, managers, members or partners, as the case may be,
passing all resolutions or consents necessary to authorize actions to be taken,
and maintaining accurate and separate books, records and accounts and in a
manner permitting the assets and liabilities of the Borrower and each of its
Subsidiaries (including the Broadcast License Subsidiaries) to be easily
separated and readily ascertained.

                  (e) Ensure that the Property of the Borrower or any of its
Subsidiaries (including each Broadcast License Subsidiary) is not commingled
with the Property of any of the others of them or any other Person and otherwise
remains clearly identifiable.

                  (f) Conduct the business of the Borrower or any of its
Subsidiaries (including each Broadcast License Subsidiary) solely in its own
name and through its respective duly authorized managers, members, officers or
agents so as not to mislead others as to the identity of the Person with which
those others are concerned.

                  (g) Ensure that no Broadcast License Subsidiary has any
Indebtedness or other liabilities except under the Guarantee and Collateral
Agreement and liabilities permitted to be incurred under Section 7.16.

                  (h) Not hold itself out to the public or to any of its
individual creditors as being a unified Person with common assets and
liabilities with the Borrower or any of its Subsidiaries or act in a manner that
would otherwise cause its creditors to believe that the Borrower or any of its
Subsidiaries (including each Broadcast License Subsidiary) is not a separate
entity distinct from each of the others and all other Persons.

                  (i) Not take any action, or conduct its affairs in any manner,
that could reasonably be expected to result in the separate existence of any
Broadcast License Subsidiary being ignored or the assets and liabilities of any
Broadcast License Subsidiary being substantively consolidated with those of the
Borrower or any of its other Subsidiaries (including any other Broadcast License
Subsidiary) in a bankruptcy, reorganization or other insolvency proceeding.

                  6.10 ADDITIONAL COLLATERAL, ETC.

                  (a) With respect to any Property acquired after the Closing
Date by the Borrower or any of its Subsidiaries (other than (x) any Property
described in paragraphs (b), (c) or (d) of this Section, (y) any Excluded Assets
and (z) Property acquired by a Subsidiary that is not a Subsidiary Guarantor) as
to which the Administrative Agent, for the benefit of the Secured Parties, does
not have a perfected Lien, promptly (and, in any event, within 90 days following
the date of such acquisition) (i) execute and deliver to the Administrative
Agent such amendments to the Guarantee and Collateral Agreement or such other
documents as the Administrative Agent deems reasonably necessary or advisable to
grant to the Administrative Agent, for the benefit of the Secured Parties, a
security interest in such Property and (ii) take all actions reasonably
necessary or advisable to grant to the Administrative Agent, for the benefit of
the Secured Parties, a perfected first priority security interest in such
Property (subject only to Liens permitted by Section 7.3 that are not
consensually granted), including, but not limited to, the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required by
the Guarantee and Collateral Agreement or by law or as may be requested by the
Administrative Agent.

                  (b) If at any time so requested by the Administrative Agent or
by the Required Lenders with respect to any fee interest in any real property
having a value (net of Liens thereon

                                      -58-
<PAGE>

permitted under Section 7.3) of at least $3,000,000 now owned or hereafter
acquired by the Borrower or any Subsidiary Guarantor, promptly (and, in any
event, within 90 days following the date of such request) (i) execute, deliver
(in recordable form) and record a mortgage in favor of the Administrative Agent,
for the benefit of the Secured Parties, covering such real property, (ii) if
requested by the Administrative Agent, provide the Secured Parties with (x)
title and extended coverage insurance covering such real property in an amount
at least equal to the value of such real property (or such other amount as shall
be reasonably specified by the Administrative Agent) as well as a current ALTA
survey thereof, together with a surveyor's certificate, and (y) any consents or
estoppels reasonably deemed necessary or advisable by the Administrative Agent
in connection with such mortgage, each of the foregoing in form and substance
reasonably satisfactory to the Administrative Agent, and (iii) if reasonably
requested by the Administrative Agent, deliver to the Administrative Agent legal
opinions relating to the matters described above, which opinions shall be in
form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

                  (c) With respect to each Person that now is or hereafter
becomes a Subsidiary of the Borrower (except JuJu Media, Inc. and any Excluded
Foreign Subsidiary) and with respect to each Subsidiary that ceases to be an
Excluded Foreign Subsidiary (but continues to be a Subsidiary), promptly (and,
in any event, within 90 days following such creation or the date of such
acquisition) (i) execute and deliver to the Administrative Agent such amendments
to the Guarantee and Collateral Agreement as the Administrative Agent deems
reasonably necessary or advisable to grant to the Administrative Agent, for the
benefit of the Secured Parties, a perfected first priority security interest in
the Capital Stock of such new Subsidiary that is owned by the Borrower or any of
its Subsidiaries, (ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of the Borrower or such
Subsidiary, as the case may be, (iii) cause such new Subsidiary (A) to become a
party to the Guarantee and Collateral Agreement and the Intellectual Property
Security Agreement and (B) to take such actions reasonably necessary or
advisable to grant to the Administrative Agent for the benefit of the Secured
Parties a perfected first priority security interest (subject only to Liens
permitted by Section 7.3 that are not consensually granted) in the Collateral
described in the Guarantee and Collateral Agreement and the Intellectual
Property Security Agreements with respect to such new Subsidiary, including the
recording of instruments in the United States Patent and Trademark Office and
the United States Copyright Office, the execution and delivery by all necessary
Persons of Control Agreements and the filing of Uniform Commercial Code
financing statements in such jurisdictions as may be required by the Guarantee
and Collateral Agreement, the Intellectual Property Security Agreements or by
law or as may be requested by the Administrative Agent, and (iv) if requested by
the Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

                  (d) With respect to any new Excluded Foreign Subsidiary
created or acquired after the Closing Date by the Borrower or any of its
Subsidiaries, promptly (and, in any event, within 90 days following such
creation or the date of such acquisition) (i) execute and deliver to the
Administrative Agent such amendments to the Guarantee and Collateral Agreement
as the Administrative Agent deems reasonably necessary or advisable in order to
grant to the Administrative Agent, for the benefit of the Secured Parties, a
perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by the Borrower or any of its Subsidiaries (provided
that in no event shall more than 65% of the total outstanding Capital Stock of
any such new Subsidiary be required to be so pledged), (ii) deliver to the
Administrative Agent the certificates representing such Capital Stock, together
with undated stock powers, in blank, executed and delivered by a duly authorized
officer of the Borrower or such Subsidiary, as the case may be, and take such
other action as may be necessary or, in the reasonable opinion of the
Administrative Agent, desirable to perfect the Lien of the Administrative Agent
thereon and (iii) if requested by the Administrative Agent, deliver to the
Administrative Agent legal opinions relating to the

                                      -59-
<PAGE>

matters described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent.

                  (e) Notwithstanding anything to the contrary in this Section
6.10, paragraphs (a), (b), (c) and (d) of this Section 6.10 shall not apply to
any Property, new Subsidiary or new Excluded Foreign Subsidiary created or
acquired after the Closing Date, as applicable, as to which the Administrative
Agent has determined in its sole discretion that the collateral value thereof is
insufficient to justify the difficulty, time and/or expense of obtaining a
perfected Lien thereon.

                  6.11 USE OF PROCEEDS. Use the proceeds of the Loans lawfully,
in accordance with this Agreement and only for the purposes specified in Section
4.16.

                  6.12 FURTHER ASSURANCES. From time to time execute and
deliver, or cause to be executed and delivered, such additional instruments,
certificates or documents, and take all such actions, as the Administrative
Agent may reasonably request, for the purposes of implementing or effectuating
the provisions of this Agreement and the other Loan Documents, or of more fully
perfecting or renewing the rights of the Administrative Agent and the Secured
Parties with respect to the Collateral in accordance with the Guarantee and
Collateral Agreement (or with respect to any additions thereto or replacements
or proceeds or products thereof or with respect to any other Property or assets
hereafter acquired that may be deemed to be part of the Collateral) pursuant
hereto or thereto. Upon the exercise by the Administrative Agent or any Lender
of any power, right, privilege or remedy pursuant to this Agreement or the other
Loan Documents that requires any consent, approval, recording, qualification or
authorization of any Governmental Authority, the Borrower will execute and
deliver, or will cause the execution and delivery of, all applications,
certifications, instruments and other documents and papers that the
Administrative Agent or such Lender may be required to obtain from the Borrower
or any of its Subsidiaries for such governmental consent, approval, recording,
qualification or authorization.

                  6.13 CORPORATE STRUCTURE. Except for JuJu Media, Inc. and
except as otherwise permitted under Section 7.8(h), cause each Subsidiary of
Borrower to be and remain a Wholly Owned Subsidiary of the Borrower.

SECTION 7. NEGATIVE COVENANTS

                  The Borrower hereby agrees that, so long as any of the
Commitments remain in effect, any Letter of Credit remains outstanding or any of
the principal of or interest on any Loan or Reimbursement Obligation is
outstanding, the Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly:

                  7.1 FINANCIAL CONDITION COVENANTS.

                  (a) Consolidated EBITDA. Permit Consolidated EBITDA for the
period of twelve consecutive months ending as of the last day of any fiscal
quarter set forth below to be less than the amount set forth opposite such date
(it being understood that there will be no test under this Section 7.1(a) for
any period ending after June 30, 2005):

                   Fiscal Quarter                     Consolidated EBITDA
                   --------------                     -------------------
                 December 31, 2003                          $36,900,000
                 March 31, 2004                             $36,900,000
                 June 30, 2004                              $38,500,000
                 September 30, 2004                         $40,400,000
                 December 31, 2004                          $41,900,000

                                 -60-
<PAGE>

                 March 31, 2005                             $43,900,000
                 June 30, 2005                              $45,000,000

                  (b) Consolidated Fixed Charge Coverage Ratio. Permit the
Consolidated Fixed Charge Coverage Ratio for any period of four consecutive
fiscal quarters of the Borrower ending on the last day of any fiscal quarter set
forth below to be less than the ratio set forth below opposite such fiscal
quarter (it being understood that there will be no test under this Section
7.1(b) prior to the fiscal quarter ending on September 30, 2005):

                                                         Consolidated Fixed
                                                          Charged Coverage
                            Fiscal Quarter                   Ratio (x:1)
                            --------------               ------------------
                 September 30, 2005                            1.00:1
                 December 31, 2005                             1.00:1
                 March 31, 2006 through and including
                 December 31, 2006                             1.00:1
                 March 31, 2007 through and including
                 December 31, 2007                             1.05:1
                 March 31, 2008 through and including
                 December 31, 2008                             1.10:1
                 March 31, 2009 and each fiscal
                 quarter thereafter                            1.15:1

                  (c) Consolidated Leverage Ratio. Permit the Consolidated
Leverage Ratio determined as of the last day of any fiscal quarter set forth
below to exceed the ratio set forth below opposite such fiscal quarter:

                                                         Consolidated Leverage
                             Fiscal Quarter                  Ratio (x:1)
                             --------------              ---------------------
                 December 31, 2003                             11.25:1
                 March 31, 2004                                11.25:1
                 June 30, 2004                                 11.00:1
                 September 30, 2004                            10.75:1
                 December 31, 2004                             10.50:1
                 March 31, 2005                                10.25:1
                 June 30, 2005                                 10.00:1
                 September 30, 2005                             9.75:1
                 December 31, 2005                              9.50:1
                 March 31, 2006 through and including
                 December 31, 2006                              9.00:1
                 March 31, 2007 through and including
                 December 31, 2007                              8.50:1
                 March 31, 2008 through and including
                 December 31, 2008                              8.00:1
                 March 31, 2009 and each fiscal
                 quarter thereafter                             7.50:1

                                      -61-
<PAGE>

                  (d) Consolidated Interest Coverage Ratio. Permit the
Consolidated Interest Coverage Ratio for any period of four consecutive fiscal
quarters of the Borrower ending on the last day of any fiscal quarter set forth
below to be less than the ratio set forth below opposite such fiscal quarter:

                                                        Consolidated Interest
                                                               Coverage
                               Fiscal Quarter                Ratio (x:1)
                             December 31, 2003              not applicable
                             -----------------          ---------------------
                 March 31, 2004                                 1.00:1
                 June 30, 2004                                  1.00:1
                 September 30, 2004                             1.00:1
                 December 31, 2004                              1.00:1
                 March 31, 2005                                 1.05:1
                 June 30, 2005                                  1.05:1
                 September 30, 2005                             1.10:1
                 December 31, 2005                              1.10:1
                 March 31, 2006 through and including
                 December 31, 2006                              1.15:1
                 March 31, 2007 through and including
                 December 31, 2007                              1.20:1
                 March 31, 2008 through and including
                 December 31, 2008                              1.25:1
                 March 31, 2009 and each fiscal
                 quarter thereafter                             1.30:1

                  (e) Consolidated  Senior Secured Debt Ratio.  Permit the
Consolidated  Senior Secured Debt Ratio determined as of the last day of any
fiscal quarter set forth below to exceed the ratio set forth below opposite such
fiscal quarter:

                                                          Consolidated Senior
                                                                 Secured
                                                                   Debt
                               Fiscal Quarter                  Ratio (x:1)
                               --------------             -------------------

                 December 31, 2003                                3.25:1
                 March 31, 2004                                   3.25:1
                 June 30, 2004                                    3.00:1
                 September 30, 2004                               3.00:1
                 December 31, 2004                                2.75:1
                 March 31, 2005                                   2.75:1
                 June 30, 2005                                    2.75:1
                 September 30, 2005                               2.50:1
                 December 31, 2005                                2.50:1
                 March 31, 2006 through and including
                 December 31, 2006                                2.50:1
                 March 31, 2007 through and including
                 December 31, 2007                                2.25:1
                 March 31, 2008 through and including
                 December 31, 2008                                2.00:1
                 March 31, 2009 and each fiscal
                 quarter thereafter                               2.00:1

                                      -62-
<PAGE>

                  7.2 LIMITATION ON INDEBTEDNESS. Create, incur, assume or
suffer to exist any Indebtedness, except:

                  (a) Indebtedness of any Loan Party pursuant to any Loan
Document;

                  (b) Unsecured Indebtedness (i) constituting Puerto Rico
Intercompany Debt, (ii) of the Borrower outstanding to any Solvent Subsidiary,
(iii) of any Subsidiary Guarantor outstanding to the Borrower or any other
Subsidiary Guarantor or (iv) of any Subsidiary of the Borrower that is not a
Subsidiary Guarantor outstanding to the Borrower or any Subsidiary Guarantor, so
long as the aggregate Investments of the Borrower and the Subsidiary Guarantors
(whether in the form of debt or equity and counted at cost (or if made in assets
at the fair market value thereof when made, as determined in good faith by the
Borrower's board of directors), net of returns of the principal thereof received
in cash thereon) made at any time after the Closing Date in any and all
Subsidiaries of the Borrower that are not Subsidiary Guarantors and in any and
all Persons that are not Subsidiaries of the Borrower does not at any time
exceed $35,000,000; PROVIDED that all such Indebtedness outstanding to the
Borrower or any Subsidiary Guarantor shall be evidenced by promissory notes duly
endorsed and delivered to the Administrative Agent in pledge as security for the
Obligations and, if the Borrower or any Subsidiary Guarantor is the obligor
thereon, subordinated in right of payment to the Obligations on terms and
conditions satisfactory to the Administrative Agent;

                  (c) Indebtedness of the Borrower or any of its Subsidiaries
(including Capital Lease Obligations) secured by Liens permitted by Section
7.3(g) in an aggregate principal amount, for the Borrower and all of its
Subsidiaries, not exceeding $8,500,000 at any one time outstanding;

                  (d) Indebtedness (other than the Indebtedness referred to in
Section 7.2(f)) outstanding on the date hereof and listed on Schedule 7.2(d) and
any refinancings, refundings, renewals or extensions thereof (without any
increase in the principal amount thereof or any shortening of the maturity of
any principal amount thereof);

                  (e) Unsecured Guarantee Obligations made in the ordinary
course of business by the Borrower or any of its Subsidiaries of obligations of
the Borrower or any Subsidiary Guarantor;

                  (f) Unsecured Indebtedness of the Borrower in respect of
Senior Subordinated Notes outstanding under the Senior Subordinated Note
Indenture in an aggregate principal amount not exceeding $335,000,000 less any
amounts thereof redeemed, repurchased or repaid by Borrower, and the guaranty of
such Indebtedness, on the terms set forth in the Senior Subordinated Note
Indenture, by any Permitted Guarantor;

                  (g) Seller Indebtedness constituting purchase consideration
for Permitted Acquisitions;

                  (h) Exchange Subordinated Debt issued in exchange for the
Preferred Stock and the guaranty thereof by any Permitted Guarantor, so long as
at the time of such exchange, and after giving effect thereto, on a pro forma
basis (assuming that such exchange occurred on the first day of the most
recently reported period of twelve consecutive months) the Consolidated Leverage
Ratio shall be not more than 7.00:1.00 and the Consolidated Senior Secured Debt
Ratio shall be not more than 1.75:1.00;

                  (i) Indebtedness incurred as a result of a Permitted
Refinancing in an aggregate principal amount not in excess of the aggregate
principal amount of Senior Subordinated Notes (plus any call premium payable
upon redemption or repurchase of the Senior Subordinated Notes) outstanding

                                      -63-
<PAGE>

immediately prior to the application of proceeds of such Indebtedness, together
with reasonable fees, costs and expenses related thereto; and

                  (j) additional Indebtedness of the Borrower or any of its
Subsidiaries in an aggregate principal amount (for the Borrower and all
Subsidiaries) not to exceed $5,000,000 at any one time outstanding.

                  7.3 LIMITATION ON LIENS. Create, incur, assume or suffer to
exist any Lien upon any of its Property, whether now owned or hereafter
acquired, except for:

                  (a) Liens for taxes, assessments or governmental charges or
levies not yet due and payable or being contested in good faith by appropriate
proceedings, provided that adequate reserves with respect thereto are maintained
on its books in conformity with GAAP;

                  (b) carriers', warehousemen's, mechanics', materialmen's,
landlords', repairmen's or other like Liens arising in the ordinary course of
business that are not overdue for a period of more than 60 days or are being
contested in good faith by appropriate proceedings;

                  (c) pledges or deposits in connection with workers'
compensation, unemployment insurance and other social security legislation;

                  (d) pledges or deposits by or on behalf of the Borrower or any
of its Subsidiaries to secure the performance of tenders, bids, trade contracts
(other than for borrowed money), leases, utilities, statutory obligations,
surety and appeal bonds, performance and return of money bonds and other
obligations of a like nature incurred in the ordinary course of business;

                  (e) easements, rights-of-way, restrictions and other similar
charges or encumbrances incurred in the ordinary course of business that, in the
aggregate, are not substantial in amount and do not in any case materially
detract from the value of the Property subject thereto or materially interfere
with the ordinary conduct of the business of the Borrower or any of its
Subsidiaries;

                  (f) Liens in existence on the date hereof listed on Schedule
7.3(f), securing Indebtedness permitted by Section 7.2(d) and refinancings,
renewals and extensions thereof, provided that no such Lien is extended to cover
any additional Property after the Closing Date and that the amount of
Indebtedness secured thereby is not increased; and Liens in existence on the
date hereof listed on Schedule 4.10;

                  (g) Liens securing Indebtedness of the Borrower or any of its
Subsidiaries incurred pursuant to Section 7.2(c) to finance the acquisition of
fixed or capital assets, provided that (i) such Liens shall be created
substantially simultaneously with the acquisition of such fixed or capital
assets, (ii) such Liens do not at any time encumber any Property other than the
Property financed by such Indebtedness and (iii) the amount of Indebtedness
secured thereby is not increased;

                  (h) Liens created pursuant to any of the Loan Documents;

                  (i) any interest or title of a lessor under any lease entered
into by the Borrower or any of its Subsidiaries in the ordinary course of its
business and covering only the assets so leased;

                  (j) Liens in favor of the Borrower or any of its Subsidiaries,
if and to the extent that the liability secured by such Liens is pledged to the
Administrative Agent for the benefit of the Secured Parties;

                                      -64-
<PAGE>

                  (k) the Lien in favor of the trustee under the Senior
Subordinated Note Indenture or, after issuance of the Exchange Subordinated Debt
or Indebtedness incurred in a Permitted Refinancing in accordance with the terms
of this Agreement, the trustee under the indenture governing the Exchange
Subordinated Debt or such Indebtedness, attaching to money and property held or
collected by such trustee and securing amounts due to it in its individual
capacity, set forth in Section 7.07 of the Senior Subordinated Note Indenture or
the equivalent provision of the indenture set forth in the indenture governing
the Exchange Subordinated Debt or such Indebtedness;

                  (l) Liens securing judgments that individually and in the
aggregate do not exceed $5,000,000 and that do not constitute a Default; and

                  (m) Liens not otherwise permitted by this Section 7.3 so long
as neither (i) the aggregate outstanding principal amount of the obligations
secured thereby nor (ii) the aggregate fair market value (determined, in the
case of each such Lien, as of the date such Lien is incurred) of the assets
subject thereto exceeds (as to the Borrower and all Subsidiaries) $2,500,000 at
any one time.

                  7.4 LIMITATION ON FUNDAMENTAL CHANGES. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or Dispose of all or substantially all
of its Property or business, except that:

                  (a) any Solvent Subsidiary of the Borrower or, in connection
with a Permitted Acquisition, any Acquired Business, may be merged or
consolidated with or into the Borrower (PROVIDED that the Borrower shall be the
continuing or surviving corporation) or with or into any Subsidiary Guarantor
(PROVIDED that the Subsidiary Guarantor shall be the continuing or surviving
corporation);

                  (b) any Subsidiary of the Borrower that is not a Subsidiary
Guarantor may Dispose of any or all of its assets (upon voluntary liquidation,
dissolution or otherwise) to its shareholders in accordance with their
respective pro rata interests;

                  (c) any Subsidiary Guarantor may Dispose of any or all of its
assets (upon voluntary liquidation, dissolution or otherwise) to the Borrower or
any other Subsidiary Guarantor; and

                  (d) any Wholly Owned Subsidiary of the Borrower that is not a
Subsidiary Guarantor may be merged with or into any other Wholly Owned
Subsidiary of the Borrower that is not a Subsidiary Guarantor.

                  7.5 LIMITATION ON DISPOSITION OF PROPERTY. Dispose of any of
its Property (including receivables and leasehold interests), whether now owned
or hereafter acquired, or, in the case of any Subsidiary, issue or sell any
shares of such Subsidiary's Capital Stock to any Person, except:

                  (a) the Disposition of obsolete or worn out Property or other
Property no longer used or useful in the ordinary course of business;

                  (b) the sale of inventory in the ordinary course of business;

                  (c) Dispositions of Cash Equivalents and Dispositions
permitted by Section 7.4;

                  (d) the sale or issuance of any Subsidiary's Capital Stock
(other than Disqualified Stock) to the Borrower or any Subsidiary Guarantor;

                                      -65-
<PAGE>

                  (e) Asset Sales, each on an arms' length basis, for which the
consideration received is not less than the Fair Market Value of the assets
being disposed of, not to exceed in aggregate (i) $60,000,000 in the case of any
single Asset Sale or (ii) $100,000,000 in any fiscal year of the Borrower,
PROVIDED, HOWEVER, that no Asset Sale involving assets with a Fair Market Value
of more than $20,000,000 may be consummated unless after giving effect to such
Asset Sale and the application of the proceeds thereof, in each case, as if they
had occurred on the first day of the 12-month period ending on the last day of
the fiscal quarter of the Borrower then most recently ended, the Borrower would
have been in compliance, as of the last day of such fiscal quarter, with each of
the financial condition covenants set forth in Section 7.1, PROVIDED, FURTHER,
that in the event that any Permitted Acquisition is consummated concurrently
with such Asset Sale, the pro forma effect of such Permitted Acquisition (as
contemplated by clause (ii) of the definition of "Permitted Acquisition") shall
be taken into account in determining whether such Asset Sale meets the pro forma
compliance test of the immediately preceding proviso;

                  (f) the Asset Sales referred to in Section 2.12(a)(iii); and

                  (g) any Recovery Event, if the requirements of Section 2.12(b)
are complied with in connection therewith.

                  7.6 LIMITATION ON RESTRICTED PAYMENTS. Declare or pay any
dividend (other than dividends payable solely in common stock (excluding
Disqualified Stock) of the Person making such dividend) on, or make any payment
on account of, or set apart assets for a sinking or other analogous fund for,
the purchase, redemption, defeasance, retirement or other acquisition of, any
Capital Stock of the Borrower or any of its Subsidiaries, whether now or
hereafter outstanding, or make any other distribution in respect thereof, either
directly or indirectly, whether in cash or property or in obligations of the
Borrower or any of its Subsidiaries, or enter into any derivatives or other
transaction with any financial institution, commodities or stock exchange or
clearinghouse (a "DERIVATIVES COUNTERPARTY") obligating the Borrower or any of
its Subsidiaries to make payments to such Derivatives Counterparty as a result
of any change in market value of any such Capital Stock or make any payment of
interest in cash on the Exchange Subordinated Debt (collectively, "RESTRICTED
PAYMENTS"), except that:

                  (a) any Subsidiary of the Borrower may make Restricted
Payments to its shareholders in accordance with their respective pro rata
interests;

                  (b) the Borrower may pay dividends solely in kind, by
distributing additional shares of the same Capital Stock;

                  (c) the Borrower may redeem or repurchase the Senior
Subordinated Notes through a Permitted Refinancing;

                  (d) the Borrower may redeem for cash up to a maximum of 40% of
the outstanding accreted value of the Preferred Stock (at the time of the first
redemption thereof after the Closing Date) with the proceeds of an issuance of
Capital Stock (other than Disqualified Stock) in accordance with and subject to
the limits of the Certificates of Designation;

                  (e) so long as no Default shall have occurred and be
continuing, the Borrower may purchase Capital Stock of the Borrower from present
or former officers or employees of the Borrower or any of its Subsidiaries upon
the death, disability or termination of employment of such officer or employee,
PROVIDED that the aggregate consideration paid for all such purchases in any
fiscal year of the Borrower (net of amounts repaid in respect of loans
contemplated in Section 7.8(d)(i) and any cash proceeds received subsequent to
the date hereof from the issuance and sale of Management Equity in

                                      -66-
<PAGE>

connection with the exercise of common stock options for Management Equity)
shall not exceed $3,000,000;

                  (f) the exchange of Borrower's 10.75% Series A Cumulative
Exchangeable Redeemable Preferred Stock for Borrower's 10.75% Series B
Cumulative Exchangeable Redeemable Preferred Stock; and

                  (g) the Borrower may pay cash dividends on the Preferred Stock
so long as at the time of such payment and after giving effect thereto, on a pro
forma basis (assuming that such payment occurred on the first day of the most
recently reported period of twelve consecutive months) the Consolidated Leverage
Ratio shall be not more than 8.50:1.00 and the Consolidated Senior Secured Debt
Ratio shall be not more than 2.00:1.00.

                  7.7 LIMITATION ON CAPITAL EXPENDITURES. Make or commit to make
any Capital Expenditure, except Capital Expenditures of the Borrower and its
Subsidiaries in the ordinary course of business not exceeding $10,000,000 per
fiscal year; PROVIDED that (i) up to 100% of any such amount referred to above,
if not so expended in the fiscal year for which it is permitted, may be carried
over for expenditure in the next succeeding fiscal year; (ii) Capital
Expenditures made during any fiscal year shall be deemed made, FIRST, in respect
of amounts permitted for such fiscal year as provided above and; SECOND, in
respect of amounts carried over from the prior fiscal year pursuant to clause
(i) above; and (iii) in addition, the Borrower and its Subsidiaries shall be
permitted to make Capital Expenditures during the term of this Agreement in an
amount not exceeding (x) 50% of the Net Cash Proceeds of any issuance and sale
of Capital Stock (other than Disqualified Stock) by the Borrower after the
Closing Date, if such Net Cash Proceeds are used within 365 days from receipt
thereof to pay for such Capital Expenditures, and (y) the proceeds of any
Reinvestment Deferred Amount.

                  7.8 LIMITATION ON INVESTMENTS. Make any advance, loan,
extension of credit (by way of guaranty or otherwise) or capital contribution
to, or purchase any Capital Stock, bonds, notes, debentures or other debt
securities of, or any assets constituting an ongoing business from, or make any
other investment in, any other Person (all of the foregoing, "INVESTMENTS"),
except:

                  (a) Investments consisting of extensions of credit in the
nature of accounts receivable or notes receivable arising from the grant of
trade credit in the ordinary course of business, and Investments received in
satisfaction or partial satisfaction thereof from financially troubled account
debtors;

                  (b) Investments in cash and Cash Equivalents;

                  (c) Investments arising in connection with the incurrence of
Indebtedness permitted by Sections 7.2(b), 7.2(e) and 7.2(j);

                  (d) (i) loans made by the Borrower to officers and employees
of the Borrower or any Subsidiary of the Borrower the proceeds of which are
utilized contemporaneously to purchase Management Equity from the Borrower and
(ii) other loans and advances to employees of the Borrower or any Subsidiaries
of the Borrower in the ordinary course of business (including for travel,
entertainment and relocation expenses) in an aggregate amount for the Borrower
and Subsidiaries of the Borrower not to exceed $250,000 at any one time
outstanding;

                  (e) any Permitted Acquisition made by Borrower directly or
through Wholly Owned Subsidiaries, including the acquisition, formation and
capitalization of any new Wholly

                                      -67-
<PAGE>

Owned Subsidiary of the Borrower to consummate a Permitted Acquisition, so long
as the Borrower complies with Section 6.10(c) in respect thereof;

                  (f) Investments in Capital Stock of a Subsidiary Guarantor, so
long as the Borrower complies with Section 6.10(c) in respect thereof;

                  (g) Investments existing on the Closing Date and listed on
Schedule 7.8(g);

                  (h) any Investments in Capital Stock of any Subsidiary of the
Borrower that is not a Subsidiary Guarantor or of any Person that is not a
Subsidiary of the Borrower, so long as the aggregate Investments of the Borrower
and the Subsidiary Guarantors (whether in the form of debt or equity and counted
at cost (or if made in assets at the fair market value thereof when made, as
determined in good faith by the Borrower's board of directors), net of returns
of the principal thereof received in cash thereon) made at any time after the
Closing Date in any and all Subsidiaries of the Borrower that are not Subsidiary
Guarantors and in any and all Persons that are not Subsidiaries of the Borrower
does not at any time exceed $30,000,000; and

                  (i) in addition to Investments otherwise expressly permitted
by this Section, Investments by the Borrower or any of its Subsidiaries in an
aggregate amount (valued at cost, net of returns of the principal thereof
received in cash thereon) not exceeding $5,000,000; and

                  (j) Investments in Preferred Stock redeemed in accordance with
Section 7.6(d) or exchanged in accordance with Section 7.2(h) so long as such
Preferred Stock is retired upon acquisition or exchange thereof and Investments
in Senior Subordinated Notes with the proceeds of Indebtedness incurred in a
Permitted Refinancing or with the proceeds of Capital Stock (other than
Disqualified Stock) so long as such Senior Subordinated Notes are retired upon
repurchase or redemption thereof.

                  7.9 LIMITATION ON SUBORDINATED INDEBTEDNESS.

                  (a) Make or offer to make any optional or voluntary payment,
prepayment, repurchase or redemption of, or otherwise voluntarily or optionally
defease, any Indebtedness that is subordinated in right of payment to the
Obligations or that constitutes Indebtedness contemplated by clause (2) of the
definition of Permitted Refinancing (other than the redemption or repurchase of
the Senior Subordinated Notes through a Permitted Refinancing) or segregate
funds for any such payment, prepayment, repurchase, redemption or defeasance, or
enter into any derivative or other transaction with any Derivatives Counterparty
obligating the Borrower or any of its Subsidiaries to make payments to such
Derivatives Counterparty as a result of any change in market value of any such
Indebtedness (it being understood that except as provided in paragraph (b)
below, this Agreement does not prohibit Borrower from (x) making an "Asset Sale
Offer" to the extent required by (and as such term is defined in) the indenture
governing the Senior Subordinated Notes (or Exchange Subordinated Debt or any or
Indebtedness incurred in a Permitted Refinancing) in respect of the portion of
the proceeds of such Asset Sale that the Borrower is not required to apply to
the Obligations hereunder or (y) making any payment in respect of any such
"Asset Sale Offer" that is accepted by any holder of Senior Subordinated Notes
(or Exchange Subordinated Debt or any Indebtedness incurred in a Permitted
Refinancing) to the extent so required);

                  (b) make any payment or distribution in respect of any
Indebtedness that is subordinated in right of payment to the Obligations at any
time when such payment or distribution, or the acceptance thereof, is prohibited
or restricted under the subordination provisions governing such Subordinated
Indebtedness;

                                      -68-
<PAGE>

                  (c) amend, modify or otherwise change, or consent or agree to
any amendment, modification, waiver or other change to, any of the terms
(including the subordination terms) of any of the Senior Subordinated Note
Indenture or any other agreement governing or relating to any Indebtedness that
is subordinated in right of payment to the Obligations, except any such
amendment, modification, waiver or other change which (i) would extend the
maturity or reduce the amount of any payment of principal thereof, reduce the
rate or extend the date for payment of interest thereon or relax any covenant or
other restriction applicable to the Borrower or any of its Subsidiaries and (ii)
does not involve the payment of a consent fee; or

                  (d) designate any Indebtedness (other than the Obligations) as
"Designated Senior Debt" for the purposes of the Senior Subordinated Note
Indenture or any indenture governing Indebtedness incurred in a Permitted
Refinancing or Exchange Subordinated Debt.

                  7.10 LIMITATION ON TRANSACTIONS WITH AFFILIATES. Enter into
any transaction, including any purchase, sale, lease or exchange of Property,
the rendering of any service or the payment of any management, advisory or
similar fees, with any Affiliate (other than the Borrower, any Wholly Owned
Subsidiary of the Borrower or any other Subsidiary of the Borrower so long as no
Capital Stock of such other Subsidiary is owned by any Person that controls the
Borrower) unless such transaction is (a) otherwise permitted under this
Agreement, (b) in the ordinary course of business of the Borrower or such
Subsidiary, as the case may be, and (c) upon fair and reasonable terms no less
favorable to the Borrower or such Subsidiary, as the case may be, than it could
reasonably be expected to obtain in a comparable arm's length transaction with a
Person that is not an Affiliate. Notwithstanding the foregoing, the following
transactions shall not be prohibited: (i) fees and compensation paid to, and
indemnity provided on behalf of, officers, directors or employees of the
Borrower or any of its Subsidiaries, to the extent the same are reasonable and
customary, and (ii) transactions pursuant to agreements or arrangements in
effect on the Closing Date and listed on Schedule 7.10.

                  7.11 LIMITATION ON SALES AND LEASEBACKS. Enter into any
arrangement with any Person providing for the leasing by the Borrower or any of
its Subsidiaries of Property that has been or is to be sold or transferred by
the Borrower or such Subsidiary to such Person or to any other Person to whom
funds have been or are to be advanced by such Person on the security of such
Property or rental obligations of the Borrower or such Subsidiary.

                  7.12 LIMITATION ON CHANGES IN FISCAL PERIODS. Permit the
fiscal year of the Borrower or any of its Subsidiaries to end on a day other
than December 31 or change the Borrower's or any of its Subsidiaries' method of
determining fiscal quarters.

                  7.13 LIMITATION ON NEGATIVE PLEDGE CLAUSES. Enter into or
suffer to exist or become effective any agreement that prohibits or limits the
ability of the Borrower or any of its Subsidiaries to create, incur, assume or
suffer to exist any Lien upon any of its Property or revenues, whether now owned
or hereafter acquired, to secure the Obligations or, in the case of any
Guarantor (as defined in the Guarantee and Collateral Agreement), its
obligations under the Guarantee and Collateral Agreement, other than (a) this
Agreement and the other Loan Documents, (b) applicable law and agreements in
effect on the date hereof and listed on Schedule 7.13, (c) any Lease, any
Intellectual Property license agreement under which the Borrower or a Subsidiary
of the Borrower is the licensee, and any other agreement under which the
Borrower or a Subsidiary of the Borrower is entitled to the performance of any
obligation other than the payment of money, if any such prohibition or
limitation is limited to the interest of the Borrower or such Subsidiary
thereunder and in the reasonable judgment of the Borrower, the acceptance of
such prohibition or limitation was necessary to achieve a business purpose of
the Borrower or such Subsidiary, (d) any restriction under any agreement
governing Indebtedness permitted under Section 7.2(c), if such restriction is
enforceable only by the holder of such Indebtedness and applies only to the
assets securing

                                      -69-
<PAGE>

such Indebtedness and (e) in any indenture governing Indebtedness incurred in a
Permitted Refinancing or Exchange Subordinated Debt so long as any such
agreement is not more restrictive that the corresponding provision in the Senior
Subordinated Note Indenture as in effect on the Closing Date.

                  7.14 LIMITATION ON RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS,
ETC.. Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of the Borrower or any of its
Subsidiaries (or, in the case of clause (a) only, any Subsidiary of the
Borrower) to (a) make Restricted Payments in respect of any Capital Stock of
such Subsidiary held by, or pay or subordinate any Indebtedness owed to, the
Borrower or any other Subsidiary, (b) make Investments in the Borrower or any
other Subsidiary or (c) transfer any of its assets to the Borrower or any other
Subsidiary, except for such encumbrances or restrictions existing under or by
reason of (i) any restrictions existing under the Loan Documents, (ii) any
restrictions with respect to a Subsidiary imposed pursuant to an agreement that
has been entered into in connection with the Disposition of all or substantially
all of the Capital Stock or assets of such Subsidiary, (iii) customary
provisions restricting subletting or assignment of any lease, license or other
contract entered into in the ordinary course of business, (iv) restrictions on
the transfer or disposition of any asset subject to a Lien otherwise permitted
under this Agreement, if such restriction is enforceable only by the holder of
such Lien and only against such assets, (v) restrictions imposed by any joint
venture or similar agreement entered into with respect to Investments otherwise
permitted under this Agreement, (vi) restrictions existing on the Closing Date
and (vii) restrictions contained in any indenture governing Indebtedness
incurred in a Permitted Refinancing or Exchange Subordinated Debt so long as any
such restriction is not more restrictive that the corresponding provision in the
Senior Subordinated Note Indenture as in effect on the Closing Date.

                  7.15 LIMITATION ON LINES OF BUSINESS. Enter into any business,
either directly or through any Subsidiary, except for Permitted Businesses.

                  7.16 BROADCAST LICENSE SUBSIDIARIES. In the case of each
Broadcast License Subsidiary, (a) engage in any business or activity other than
holding FCC Licenses and rights related thereto, (b) incur, assume or otherwise
become or remain obligated in respect of any liability except trade payables
incurred in the ordinary course of business and tax liabilities incidental to
ownership of such rights, (c) grant or become subject to any Lien except Liens
securing Obligations or (d) take any Material Action.

                  7.17 AMENDMENT OF CERTAIN DOCUMENTS.

                  (a) Amend or permit the amendment of its Governing Documents
in any manner materially adverse to the Lenders.

                  (b) Amend, modify, supplement or otherwise change the KXOL
Acquisition Agreement or (after they have been provided to the Administrative
Agent and Lenders pursuant to clause (iv)(x) in the definition of "Permitted
Acquisition" and the 10 Business Day period described in clause (iv)(y) of such
definition has expired) any other Acquisition Documentation, except upon written
notice to and the consent of the Administrative Agent (which consent shall not
unreasonably be withheld).

                  (c) Amend, modify or otherwise change the Senior Subordinated
Note Indenture or any other documents establishing the terms and conditions of
any other Subordinated Debt or the Preferred Stock, in any case, in any manner
that is or could reasonably be expected to be adverse to the Lenders or any
Agent.

                                      -70-
<PAGE>

SECTION 8. EVENTS OF DEFAULT

                  If any of the following events shall occur and be continuing:

                  (a) The Borrower shall fail to pay any principal of any Loan
or Reimbursement Obligation when due in accordance with the terms hereof; or the
Borrower shall fail to pay any interest on any Loan or Reimbursement Obligation,
or any other amount payable hereunder or under any other Loan Document, within
five days after any such interest or other amount becomes due in accordance with
the terms hereof; or

                  (b) Any representation or warranty made or deemed made by any
Loan Party herein or in any other Loan Document or that is contained in any
certificate, document or financial or other statement furnished by it at any
time under or in connection with this Agreement or any such other Loan Document
shall prove to have been inaccurate in any material respect on or as of the date
made or deemed made; or

                  (c) Any Loan Party shall default in the observance or
performance of any agreement contained in Section 7 or (ii) Section 6.4(a) (with
respect to the Borrower only); or

                  (d) Any Loan Party shall default in the observance or
performance of any other covenant or agreement contained in this Agreement or
any other Loan Document (other than as provided in paragraphs (a) through (c) of
this Section), and such default shall continue unremedied for a period of thirty
(30) days; or

                  (e) The Borrower or any of its Subsidiaries shall (i) default
in making any payment of any principal of any Indebtedness (including any
Guarantee Obligation, but excluding the Loans) on the due date with respect
thereto; or (ii) default in making any payment of any interest on any such
Indebtedness beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or (iii) default in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist,
the effect of which default or other event or condition is to cause, or to
permit the holder or beneficiary of such Indebtedness (or a trustee or agent on
behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or (in
the case of any such Indebtedness constituting a Guarantee Obligation) to become
payable; PROVIDED that a default, event or condition described in clause (i),
(ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of
Default unless, at such time, one or more defaults, events or conditions of the
type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have
occurred and be continuing with respect to Indebtedness the outstanding
principal amount of which exceeds in the aggregate $5,000,000; or

                  (f) (i) The Borrower or any of its Subsidiaries shall commence
any case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B)
seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or the
Borrower or any of its Subsidiaries shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against the Borrower
or any of its Subsidiaries any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there shall be

                                      -71-
<PAGE>

commenced against the Borrower or any of its Subsidiaries any case, proceeding
or other action seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of its assets
that results in the entry of an order for any such relief that shall not have
been vacated, discharged, or stayed or bonded pending appeal within 60 days from
the entry thereof; or (iv) the Borrower or any of its Subsidiaries shall take
any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
or (v) the Borrower or any of its Subsidiaries shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they
become due; or

                  (g) (i) Any Person shall engage in any "prohibited
transaction" (as defined in Section 406 of ERISA or Section 4975 of the Code)
involving any Plan, (ii) any "accumulated funding deficiency" (as defined in
Section 302 of ERISA), whether or not waived, shall exist with respect to any
Plan or any Lien in favor of the PBGC or a Plan shall arise on the assets of the
Borrower, any of its Subsidiaries or any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) the Borrower or any Commonly
Controlled Entity shall, or in the reasonable opinion of the Required Lenders is
likely to, incur any liability in connection with a withdrawal from, or the
Insolvency or Reorganization of, a Multiemployer Plan, (vi) the Borrower, any of
its Subsidiaries or any Commonly Controlled Entity shall be required to make
during any fiscal year of the Borrower payments pursuant to any employee welfare
benefit plans (as defined in Section 3(1) of ERISA) that provides benefits to
retired employees (or their dependents) that, in the aggregate, exceed
$1,000,000, (vii) the Borrower, any of its Subsidiaries or any Commonly
Controlled Entity shall be required to make during any fiscal year of the
Borrower contributions to any defined benefit pension plans subject to Title IV
of ERISA (including any Multiemployer Plan) that, in the aggregate, exceed
$1,600,000 (viii) an aggregate Unfunded Pension Liability (taking into account
only Single Employer Plans with positive Unfunded Pension Liabilities) shall
exist, (ix) any potential withdrawal liability under Section 4201 of ERISA, if
the Borrower, its Subsidiaries and each Commonly Controlled Entity were to
completely or partially withdraw from all Multiemployer Plans shall exist or (x)
any other similar event or condition shall occur or exist with respect to a
Plan; and in each case in clauses (i) through (viii) above, such event or
condition, either in and of itself or together with all other such events or
conditions, if any, could, in the sole judgment of the Required Lenders,
reasonably be expected to have a Material Adverse Effect; or

                  (h) One or more judgments or decrees shall be entered against
the Borrower or any of its Subsidiaries involving for the Borrower and its
Subsidiaries taken as a whole a liability (not paid or covered by insurance in
the reasonable opinion of the Borrower if the Borrower provides evidence of such
coverage to the Administrative Agent) of $5,000,000 or more, and all such
judgments or decrees shall not have been vacated, discharged, stayed or bonded
pending appeal within 30 days from the entry thereof; or

                  (i) Any of the Security Documents shall cease, for any reason
(other than pursuant to the terms thereof), to be in full force and effect, or
any Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien
created by any of the Security Documents shall cease to be enforceable and of
the same effect and priority purported to be created thereby; or

                  (j) The guarantee contained in Section 2 of the Guarantee and
Collateral Agreement shall cease, for any reason (other than pursuant to the
terms thereof), to be in full force and effect or any Loan Party or any
Affiliate of any Loan Party shall so assert; or

                  (k) Such provisions of the Senior Subordinated Notes and of
any other Subordinated Debt that provide that the Obligations are senior thereto
shall cease, for any reason, to be in full force and effect or any Loan Party or
any Affiliate of any Loan Party shall so assert; or

                                      -72-
<PAGE>

                  (l) Any Loan Party or any Affiliate of any Loan Party shall
assert in writing that any provision of any Loan Document is not enforceable; or

                  (m) (i) The Permitted Investors shall cease to have the power
to vote or direct the voting of securities having a majority of the ordinary
voting power for the election of directors of the Borrower (determined on a
fully diluted basis); (ii) any "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT")), excluding the Permitted Investors, shall become, or obtain
rights (whether by means or warrants, options or otherwise) to become, the
"beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange
Act), directly or indirectly, of more than 35% of the outstanding common stock
of the Borrower; (iii) the board of directors of the Borrower shall cease to
consist of a majority of Continuing Directors; or (iv) a Specified Change of
Control shall occur; or

                  (n) Any FCC License necessary for the conduct of any business
or activity at any time conducted by the Borrower or any of its Subsidiaries
shall be revoked, annulled, cancelled or the FCC takes any action with respect
to any FCC License, the effect of which could reasonably be expected to result
in, individually or in the aggregate, a Material Adverse Effect;

then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) above with respect to any Loan Party,
automatically the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters of
Credit shall have presented the documents required thereunder) shall immediately
become due and payable, and (B) if such event is any other Event of Default,
either or both of the following actions may be taken: (i) upon the request of
the Required Lenders, the Administrative Agent shall, by notice to the Borrower
declare the Commitments to be terminated forthwith, whereupon the Commitments
shall immediately terminate; and (ii) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters of
Credit shall have presented the documents required thereunder) to be due and
payable forthwith, whereupon the same shall immediately become due and payable.
Upon the occurrence and during the continuation of an Event of Default, the
Administrative Agent and the Lenders shall be entitled to exercise any and all
remedies available under the Security Documents, including the Guarantee and
Collateral Agreement, or otherwise available under applicable law or otherwise.
With respect to each Letters of Credit with respect to which presentment for
honor shall not have occurred at the time of an acceleration pursuant to this
paragraph, the Borrower shall at such time either (i) deposit in a cash
collateral account opened by the Administrative Agent an amount in immediately
available funds equal to the aggregate then undrawn and unexpired amount of such
Letters of Credit (and the Borrower hereby grants to the Administrative Agent,
for the ratable benefit of the Secured Parties, a continuing security interest
in all amounts at any time on deposit in such cash collateral account to secure
the undrawn and unexpired amount of such Letters of Credit and all other
Obligations) or (ii) provide to the Issuing Lender with respect to such Letter
of Credit a Qualified Supporting Letter of Credit. If at any time the
Administrative Agent determines that any funds held in such cash collateral
account are subject to any right or claim of any Person other than the
Administrative Agent and the Secured Parties or that the total amount of such
funds is less than the aggregate undrawn and unexpired amount of outstanding
Letters of Credit, the Borrower shall, forthwith upon demand by the
Administrative Agent, pay to the Administrative Agent, as additional funds to be
deposited and held in such cash collateral account, an amount equal to the
excess of (a) such aggregate undrawn and unexpired amount over (b) the total
amount of funds, if any, then held in such cash collateral account that the
Administrative Agent determines to be free and clear of any such right and
claim.

                                      -73-
<PAGE>

Amounts held in such cash collateral account shall be applied by the
Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay other
obligations of the Loan Parties hereunder and under the other Loan Documents.
After all such Letters of Credit shall have expired or been fully drawn upon,
all Reimbursement Obligations shall have been satisfied and all other
obligations of the Loan Parties hereunder and under the other Loan Documents
shall have been paid in full, the balance, if any, in such cash collateral
account shall be returned to the Loan Parties (or such other Person as may be
lawfully entitled thereto).

SECTION 9. THE AGENTS and ARRANGER

                  9.1 APPOINTMENT. Each Lender hereby irrevocably designates and
appoints Lehman Commercial Paper Inc. as the Administrative Agent under this
Agreement and the other Loan Documents, and each Lender irrevocably authorizes
the Administrative Agent, in such capacity, to take such action on its behalf
under the provisions of this Agreement and the other Loan Documents and to
exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, no
Agent shall have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or any other Loan Document or otherwise exist
against any Agent.

                  9.2 DELEGATION OF DUTIES. The Administrative Agent may execute
any of its duties under this Agreement and the other Loan Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or attorneys
in-fact selected by it with reasonable care.

                  9.3 EXCULPATORY PROVISIONS. Neither the Arranger, nor any
Agent nor any of their respective Related Persons shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except for any
liability imposed by law, but then only if and to the extent found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted
solely from its or any of its Related Persons' personal gross negligence or
willful misconduct) or (ii) responsible in any manner to any of the Lenders for
any recitals, statements, representations or warranties made by any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document or
in any certificate, report, statement or other document referred to or provided
for in, or received by the Arranger or the Agents under or in connection with,
this Agreement or any other Loan Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document or for any failure of any Loan Party party thereto to
perform its obligations hereunder or thereunder or for the creation, validity,
legality, enforceability, perfection, priority, maintenance or enforcement of
any guaranty or Lien required or purporting to be created under any of the Loan
Documents or any other collateral security for the Obligations. As against any
Secured Party, any matter required herein to be satisfactory to, found
acceptable by or otherwise approved by the Administrative Agent may be approved
or disapproved by it in its sole discretion, acting as it may see fit given any
interest that it or its Affiliates may have and without any duty whatsoever to
any other Lender. The Agents shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party.

                                      -74-
<PAGE>

                  9.4 RELIANCE BY AGENTS. Each Agent shall be entitled to rely,
and shall be fully protected in relying, upon any instrument, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex,
teletype or e-mail message, statement, order or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to the Loan Parties), independent accountants and other
experts selected by such Agent. The Agents may deem and treat the payee of any
Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent. Each Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Required Lenders or the
requisite Lenders required under Section 10.1 to authorize or require such
action (or, if so specified by this Agreement, all Lenders) as it deems
appropriate or it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense that may be incurred by it by reason
of taking or continuing to take any such action. Each Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this Agreement
and the other Loan Documents in accordance with a request of the Required
Lenders or the requisite Lenders under Section 10.1 to authorize or require such
action (or, if so specified by this Agreement, all Lenders), and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all the Lenders and all future holders of the Obligations.

                  9.5 NOTICE OF DEFAULT. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default hereunder
unless it has received written notice from a Lender or the Borrower referring to
this Agreement, describing such Default and stating that such notice is a
"notice of default". In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default as
shall be reasonably directed by the Required Lenders (or, if so specified by
this Agreement, all Lenders), except that (a) the Administrative Agent shall not
be required to take any such action that it in good faith determines may be
unlawful or that it in good faith believes may be imprudent or may expose it to
liability, (b) the Administrative Agent shall not be required to take any such
action unless it receives indemnity satisfactory to it from the Persons
directing such action, and (c) unless and until the Administrative Agent shall
have received such direction, the Administrative Agent may decline to act or may
(but shall not be obligated to) take any action that it deems advisable.

                  9.6 NON-RELIANCE ON AGENTS AND OTHER LENDERS. Each Lender
expressly acknowledges that neither the Arranger nor any of the Agents nor any
of their respective officers, directors, employees, agents, attorneys and other
advisors, partners, attorneys-in-fact or Affiliates have made any
representations or warranties to it and that no act by the Arranger or any Agent
hereinafter taken, including any review of the affairs of a Loan Party or any
Affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by the Arranger or any Agent to any Lender. Each Lender represents to
the Arranger and the Agents that it has, independently and without reliance upon
the Arranger or any Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition, prospects and creditworthiness of the Loan Parties and their
Affiliates and made its own decision to make its Loans (and in the case of the
Issuing Lender, its Letters of Credit) hereunder and enter into this Agreement.
Each Lender also represents that it will, independently and without reliance
upon the Arranger or any Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition, prospects and
creditworthiness of the Loan Parties and their affiliates. Except for notices,
reports and other documents expressly required to be furnished to the Lenders by
the Administrative Agent hereunder, neither the Arranger nor any Agent shall
have any duty or responsibility

                                      -75-
<PAGE>

to provide any Lender with any credit or other information concerning the
business, operations, property, condition (financial or otherwise), prospects or
creditworthiness of any Loan Party or any Affiliate of a Loan Party that may
come into the possession of the Arranger or such Agent or any of its officers,
directors, employees, agents, attorneys and other advisors, partners,
attorneys-in-fact or Affiliates.

                  9.7 INDEMNIFICATION. The Lenders agree to indemnify the
Arranger and each Agent in its capacity as such (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to their respective Aggregate Exposure Percentages in effect
on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance
with such Aggregate Exposure Percentages immediately prior to such date), from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever that may at any time (including at any time following the payment of
the Loans) be imposed on, incurred by or asserted against the Arranger or such
Agent in any way relating to or arising out of, the Commitments, this Agreement,
any of the other Loan Documents, any Acquisition Documentation or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the Arranger or
such Agent under or in connection with any of the foregoing; PROVIDED that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted solely from the Arranger's
or such Agent's gross negligence or willful misconduct. The agreements in this
Section 9.7 shall survive the payment of the Loans and Letters of Credit and all
other amounts payable hereunder.

                  9.8 ARRANGER AND AGENTS IN THEIR INDIVIDUAL CAPACITIES. The
Arranger and each Agent and their respective Affiliates may make loans to,
accept deposits from and generally engage in any kind of business with any Loan
Party as though the Arranger was not the Arranger and such Agent was not an
Agent. With respect to its Loans made or renewed by it and with respect to any
Letter of Credit issued or participated in by it, the Arranger and each Agent
shall have the same rights and powers under this Agreement and the other Loan
Documents as any Lender and may exercise the same as though it were not the
Arranger or an Agent, as the case may be, and the terms "Lender" and "Lenders"
shall include the Arranger and each Agent in their respective individual
capacities.

                  9.9 SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent
may resign as Administrative Agent upon 30 days' notice to the Lenders and the
Borrower. If the Administrative Agent shall resign as Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall
appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default under Section 8(a) or Section
8(f) with respect to the Borrower shall have occurred and be continuing) be
subject to approval by the Borrower (which approval shall not be unreasonably
withheld or delayed), whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, and the term
"Administrative Agent" shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent's rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans or Letters of Credit.
If no successor agent has accepted appointment as Administrative Agent by the
date that is 30 days following a retiring Administrative Agent's notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
thereupon become effective, and the Lenders collectively shall assume and
perform all of the duties of the Administrative Agent hereunder until such time,
if any, as the Required Lenders appoint a successor agent as provided for above.
After any retiring Administrative Agent's resignation as such, the provisions

                                      -76-
<PAGE>

of this Section 9 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement and the
other Loan Documents.

                  9.10 AUTHORIZATION TO RELEASE LIENS. The Administrative Agent
is hereby irrevocably authorized by each of the Lenders to release any Lien
covering any Property of the Borrower or any of its Subsidiaries that is the
subject of a Disposition that the Administrative Agent in good faith believes to
be permitted by this Agreement or to have been consented to in accordance with
Section 10.1 or to be owned by any Subsidiary of the Borrower the Capital Stock
of which was transferred, in any such Disposition, to a Person who is not an
Affiliate of the Borrower.

                  9.11 THE ARRANGER, SYNDICATION AGENT AND CO-DOCUMENTATION
AGENTS. The parties acknowledge and agree that (a) Lehman Brothers Inc. (in such
capacity, the "Arranger") shall be credited as and may publicize that it is the
sole advisor, sole lead arranger and sole book runner of the financing
contemplated hereby, (b) Lehman Commercial Paper Inc. shall be credited as and
may publicize that it is the Syndication Agent of such financing and (c) each of
Merrill Lynch, Pierce Fenner & Smith, Incorporated and Deutsche Bank Securities
Inc. shall be credited as and may publicize that it is one of the
Co-Documentation Agents of such financing. The Arranger, Syndication Agent and
Co-Documentation Agents (i) shall not, by reason of their designation as such or
the provisions of this Section 9 or any action taken or omitted in such
capacity, have any power, duty, responsibility or liability whatsoever under
this Agreement or any other Loan Document or in respect of the financing
contemplated hereby and (ii) shall nevertheless be entitled to all of the
rights, immunities, indemnities and benefits granted to them herein.

SECTION 10. MISCELLANEOUS

                  10.1 AMENDMENTS AND WAIVERS. Neither this Agreement nor any
other Loan Document, nor any terms hereof or thereof may be amended,
supplemented or modified except in accordance with the provisions of this
Section 10.1. The Required Lenders and each Loan Party party to the relevant
Loan Document may, or (with the written consent of the Required Lenders) the
Administrative Agent and each Loan Party party to the relevant Loan Document
may, from time to time, (a) enter into written amendments, supplements or
modifications hereto and to the other Loan Documents (including amendments and
restatements hereof or thereof) for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such
terms and conditions as may be specified in the instrument of waiver, any of the
requirements of this Agreement or the other Loan Documents or any Default and
its consequences; PROVIDED, HOWEVER, that no such waiver and no such amendment,
supplement or modification shall (i) forgive the principal amount or extend the
final scheduled date of maturity of any Loan or Reimbursement Obligation, extend
the scheduled date of any amortization payment in respect of any Term Loan,
reduce the stated rate of any interest or fee payable hereunder or extend the
scheduled date of any payment thereof, increase the amount or extend the
expiration date of any Commitment of any Lender or require any consent to be
obtained with respect to any participation or assignment by a Lender other than
as required under Sections 10.6(b) and (c) respectively, in each case without
the consent of each Lender directly affected thereby; (ii) amend, modify or
waive any provision of this Section or reduce any percentage specified in the
definition of "REQUIRED LENDERS", consent to the assignment or transfer by any
Loan Party of any of its rights and obligations under this Agreement and the
other Loan Documents, release all or substantially all of the Collateral or
release all or substantially all of the Subsidiary Guarantors from their
guarantee obligations under the Guarantee and Collateral Agreement, in each case
without the consent of all Lenders; (iii) reduce the percentage specified in the
definition of "MAJORITY FACILITY LENDERS" with respect to any Facility without
the written consent of all Lenders under such Facility; (iv) amend, modify or
waive any provision of Section 9 without the consent of the Arranger or any
Agent directly affected thereby; (v) amend, modify or waive any provision of
Section 2.6 or 2.7 without the written consent of the Swing Line Lender; (vi)
amend, modify or waive any

                                      -77-
<PAGE>

provision of Section 2.18 without the consent of each Lender directly affected
thereby; (vii) amend, modify or waive any provision of Section 3 without the
consent of the Issuing Lender; or (viii) amend, modify or waive any condition
precedent to any extension of credit under the Revolving Credit Facility set
forth in Section 5.2 (including the waiver of an existing Default or Event of
Default required to be waived in order for such extension of credit to be made)
without the consent of the Majority Facility Lenders with respect to the
Revolving Credit Facility. Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Loan Parties, the Lenders, the Agents, the Arranger and all existing
and future holders of the Obligations. In the case of any waiver, the Loan
Parties, the Lenders, the Arranger and the Agents shall be restored to their
former position and rights hereunder and under the other Loan Documents, and any
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default, or impair any right
consequent thereon. Any such waiver, amendment, supplement or modification shall
be effected by a written instrument signed by the parties required to sign
pursuant to the foregoing provisions of this Section; PROVIDED that delivery of
an executed signature page of any such instrument by facsimile transmission
shall be effective as delivery of a manually executed counterpart thereof. For
the avoidance of doubt, this Agreement may be amended (or amended and restated)
with the written consent of the Required Lenders, the Arranger, the Agents and
the Borrower (x) to add one or more additional credit facilities to this
Agreement and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof (collectively,
the "ADDITIONAL EXTENSIONS OF Credit") to share ratably in the benefits of this
Agreement and the other Loan Documents with the Term Loans and Revolving
Extensions of Credit and the accrued interest and fees in respect thereof and
(y) to include appropriately the Lenders holding such credit facilities in any
determination of the Required Lenders, Required Prepayment Lenders and Majority
Revolving Facility Lenders; provided, HOWEVER, that no such amendment shall
permit the Additional Extensions of Credit to share ratably with or with
preference to the Term Loans in the application of mandatory prepayments without
the consent of the Required Prepayment Lenders or otherwise to share ratably
with or with preference to the Revolving Extensions of Credit without the
consent of the Majority Revolving Facility Lenders.

                  10.2 NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed (a) in the case of the Borrower, the Arranger and the
Agents, as follows and (b) in the case of the Lenders, as set forth on Schedule
1 to the Lender Addendum to which such Lender is a party or, in the case of a
Lender which becomes a party to this Agreement pursuant to an Assignment and
Acceptance, in such Assignment and Acceptance or (c) in the case of any party,
to such other address as such party may hereafter notify to the other parties
hereto:

           The Borrower:                      Spanish Broadcasting System, Inc.
                                              2601 South Bayshore Drive, PH II
                                              Coconut Grove, Florida 33133
                                              Attention:     Joseph A. Garcia
                                              Telecopy:      (305) 441-7861
                                              Telephone:     (305) 441-6901

                                      -78-

<PAGE>

           with a copy to:                    Kaye Scholer LLP
                                              425 Park Avenue
                                              New York, New York 10022
                                              Attention:     Edmond Gabbay
                                              Telecopy:      (212) 836-6476
                                              Telephone:     (212) 836-8000

           Lehman Commercial Paper Inc.:      Lehman Commercial Paper Inc.
                                              745 Seventh Avenue
                                              New York, New York 10019
                                              Attention:     Diane Albanese
                                              Telecopy:      (646) 758-5130
                                              Telephone:     (212) 526-4979

           with a copy to:                    Clifford Chance US LLP
                                              200 Park Avenue
                                              New York, New York  10166
                                              Attention:     Robert S. Finley
                                              Telecopy:      (212) 878-8375
                                              Telephone:     (212) 878-8000

           The Arranger:                      Lehman Brothers Inc.
                                              745 Seventh Avenue
                                              New York, New York 10019
                                              Attention:     Robert Berzins
                                              Telecopy:      (646) 758-1906
                                              Telephone:     (212) 526-3712

           With a copy to:                    Clifford Chance US LLP
                                              200 Park Avenue
                                              New York, New York  10166
                                              Attention:     Robert S. Finley
                                              Telecopy:      (212) 878-8375
                                              Telephone:     (212) 878-8000

           Issuing Lender:                    As notified by the Issuing Lender
                                              to the Administrative Agent and
                                              the Borrower provided that any
                                              notice, request or demand to or
                                              upon any Agent or any Lender shall
                                              not be effective until received.

                  10.3 NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise
and no delay in exercising, on the part of the Arranger, any Agent or any
Lender, any right, remedy, power or privilege hereunder or under the other Loan
Documents shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

                                      -79-
<PAGE>

                  10.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans and other extensions of credit hereunder.

                  10.5 PAYMENT OF EXPENSES. The Borrower agrees (a) to pay or
reimburse the Arranger and the Administrative Agent on demand for all reasonable
out-of-pocket expenses, including the reasonable fees, disbursements and other
charges of counsel, incurred in connection with the Facilities and the
development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Loan Documents and any other
documents prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby PROVIDED,
HOWEVER, that notwithstanding the foregoing, the obligations of Borrower under
this clause (a) in respect of such out-of-pocket expenses incurred by the
Arranger and Administrative Agent through the Closing Date shall be limited as
provided in the Commitment Letter, (b) to pay or reimburse each Lender, the
Arranger and each Agent for all its costs and expenses incurred in connection
with the enforcement or preservation of any rights under this Agreement, the
other Loan Documents and any such other documents, including the fees and
disbursements of counsel (including the allocated fees and disbursements and
other charges of in-house counsel) to each Lender and of counsel to the Arranger
and each Agent, (c) to pay, indemnify, and hold each Lender, the Arranger and
the Agents harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other similar taxes, if any, that may be payable or determined to be
payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Loan Documents and any such other documents, and (d)
to pay, indemnify, and hold each Lender, the Arranger and each Agent, and each
of their respective Related Persons (each of the Lenders, Arranger and Agents
and their Related Persons, an "INDEMNITEE") harmless from and against any and
all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance and
administration of this Agreement, the other Loan Documents and any such other
documents, including any of the foregoing relating to the use of proceeds of the
Loans or Letters of Credit or the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of any Loan Party or
any of the Properties and the fees and disbursements and other charges of legal
counsel in connection with claims, actions or proceedings by any Indemnitee
against the Borrower hereunder (all the foregoing in this clause (d),
collectively, the "INDEMNIFIED LIABILITIES"), PROVIDED that the Borrower shall
have no obligation hereunder to any Indemnitee with respect to Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Indemnitee. Without
limiting the foregoing, and to the extent permitted by applicable law, the
Borrower agrees not to assert and to cause its Subsidiaries not to assert, and
hereby waives and agrees to cause its Subsidiaries so to waive, all rights for
contribution or any other rights of recovery with respect to all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and expenses
of whatever kind or nature, under or related to Environmental Laws, that any of
them might have by statute or otherwise against any Indemnitee. All amounts due
under this Section shall be payable not later than five days after written
demand therefor. Statements payable by the Borrower pursuant to this Section
shall be submitted to the Borrower in accordance with Section 10.2, or to such
other Person or address as may be hereafter designated by the Borrower in a
written notice to the Administrative Agent. The agreements in this Section shall
survive repayment of the Loans and Letters of Credit and all other amounts
payable hereunder.

                  10.6 SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS.

                                      -80-
<PAGE>

                  (a) This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Lenders, the Arranger, the Agents, all other
holders of the Obligations and their respective successors and assigns, except
that the Borrower may not assign or transfer any of its rights or obligations
under this Agreement without the prior written consent of the Arranger, the
Agents and each Lender.

                  (b) Any Lender may, without the consent of the Borrower or any
other Person, in accordance with applicable law, at any time sell to one or more
Eligible Assignees (each, a "PARTICIPANT") participating interests in any Loan
owing to such Lender, any Commitment of such Lender or any other interest of
such Lender hereunder and under the other Loan Documents. In the event of any
such sale by a Lender of a participating interest to a Participant, such
Lender's obligations under this Agreement to the other parties to this Agreement
shall remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Loan for
all purposes under this Agreement and the other Loan Documents, and the Borrower
and the Administrative Agent shall continue to deal solely and directly with
such Lender in connection with such Lender's rights and obligations under this
Agreement and the other Loan Documents. In no event shall any Participant under
any such participation have any right to approve any amendment or waiver of any
provision of any Loan Document, or any consent to any departure by any Loan
Party therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Loans or any fees payable
hereunder, or postpone the date of the final maturity of the Loans, in each case
to the extent subject to such participation. The Borrower agrees that if amounts
outstanding under this Agreement and the Loans are due or unpaid, or shall have
been declared or shall have become due and payable upon the occurrence of an
Event of Default, each Participant shall, to the maximum extent permitted by
applicable law, be deemed to have the right of setoff in respect of its
participating interest in amounts owing under this Agreement to the same extent
as if the amount of its participating interest were owing directly to it as a
Lender under this Agreement, provided that, in purchasing such participating
interest, such Participant shall be deemed to have agreed to share with the
Lenders the proceeds thereof as provided in Section 10.7(a) as fully as if it
were a Lender hereunder. The Borrower also agrees that each Participant shall be
entitled to the benefits of Sections 2.19, 2.20 and 2.21 with respect to its
participation in the Commitments and the Loans outstanding from time to time as
if it was a Lender; PROVIDED that, in the case of Section 2.20, such Participant
shall have complied with the requirements of said Section; and PROVIDED,
FURTHER, that no Participant shall be entitled to receive any greater amount
pursuant to any such Section than the transferor Lender would have been entitled
to receive in respect of the amount of the participation transferred by such
transferor Lender to such Participant had no such transfer occurred.

                  (c) Any Lender (an "ASSIGNOR") may, in accordance with
applicable law, upon written notice to the Administrative Agent, at any time and
from time to time assign to any Lender or any Affiliate or Control Investment
Affiliate thereof or, with the consent of the Borrower and the Administrative
Agent and, in the case of any assignment of Revolving Credit Commitments, the
written consent of the Issuing Lender and the Swing Line Lender (which, in each
case, shall not be unreasonably withheld or delayed) (PROVIDED that (x) no such
consent need be obtained if (i) the assignment is to an Eligible Assignee and
the Assignor is the Administrative Agent or any Affiliate thereof, (ii) the
Assignee is another Lender or an Affiliate of a Lender, (iii) the assignment is
by a Lender to a Related Fund of such Lender, or (iv) Term Loans are being
assigned to an Eligible Assignee, and (y) in any event the consent of the
Borrower need not be obtained with respect to any assignment to an Eligible
Assignee at any time when a Default is continuing), to an additional Eligible
Assignee (an "ASSIGNEE") all or any part of its rights and obligations under
this Agreement pursuant to an Assignment and Acceptance, substantially in the
form of Exhibit J, executed by such Assignee and such Assignor (and, where the
consent of the Borrower, the Administrative Agent or the Issuing Lender or the
Swing Line Lender is required pursuant to the foregoing provisions, by the
Borrower and such other Persons) and delivered to the Administrative Agent for
its acceptance and recording in the Register; PROVIDED that no such assignment
to an Assignee (other than any Lender or any affiliate thereof) shall be in an
aggregate principal amount of less than

                                      -81-
<PAGE>

$1,000,000 and, after giving effect thereto, the Assignor shall retain an
Aggregate Exposure of no less than $1,000,000 (other than in the case of an
assignment of all of a Lender's interests under such Agreement), unless
otherwise agreed by the Borrower and the Administrative Agent. Any such
assignment need not be ratable as among the Facilities. Upon such execution,
delivery, acceptance and recording, from and after the effective date determined
pursuant to such Assignment and Acceptance, (x) the Assignee thereunder shall be
a party hereto and, to the extent provided in such Assignment and Acceptance,
have the rights and obligations of a Lender hereunder with a Commitment and/or
Loans as set forth therein, and (y) the Assignor thereunder shall, to the extent
provided in such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all of an Assignor's rights and obligations under this Agreement, such Assignor
shall cease to be party hereto as a Lender).

                  (d) The Administrative Agent shall, on behalf of the Borrower,
maintain at its address referred to in Section 10.2 a copy of each Assignment
and Acceptance delivered to it and a register (the "REGISTER") for the
recordation of the names and addresses of the Lenders and the Commitment of, and
principal amount of the Loans owing to, each Lender from time to time. The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Administrative Agent and the Lenders shall treat each
Person whose name is recorded in the Register as the owner of the Loans and any
Notes evidencing such Loans recorded therein for all purposes of this Agreement.
Any assignment of any Loan, whether or not evidenced by a Note, shall be
effective only upon appropriate entries with respect thereto being made in the
Register (and each Note shall expressly so provide). Any assignment or transfer
of all or part of a Loan evidenced by a Note shall be registered on the Register
only upon surrender for registration of assignment or transfer of the Note
evidencing such Loan, accompanied by a duly executed Assignment and Acceptance;
thereupon one or more new Notes in the same aggregate principal amount shall be
issued to the designated Assignee, and the old Notes shall be returned by the
Administrative Agent to the Borrower marked "canceled". The Register shall be
available for inspection by the Borrower or any Lender (with respect to any
entry relating to such Lender's Commitment and Loans) at any reasonable time and
from time to time upon reasonable prior notice.

                  (e) Upon its receipt of an Assignment and Acceptance executed
by an Assignor and an Assignee (and, in any case where the consent of any other
Person is required by Section 10.6(c), by each such other Person) together with
payment to the Administrative Agent of a registration and processing fee of
$3,500 (except that no such registration and processing fee shall be payable (x)
in connection with an assignment by a Lender to a Related Fund of such Lender,
(y) in connection with an assignment by or to a Lehman Entity or (z) in the case
of an Assignee that is already a Lender or is an Affiliate of a Lender or a
Person under common management with a Lender), the Administrative Agent shall
promptly accept such Assignment and Acceptance and record the information
contained therein in the Register and give notice of such acceptance and
recordation to the Borrower. On or prior to such effective date, the Borrower,
at its own expense, upon request, shall execute and deliver to the
Administrative Agent (in exchange for any Revolving Credit Note and/or Term
Notes, as the case may be, of the assigning Lender) a new Revolving Credit Note
and/or Term Notes, as the case may be, to such Assignee or its registered
assigns in an amount equal to the Revolving Credit Commitment and/or Term Loans,
as the case may be, assumed or acquired by it pursuant to such Assignment and
Acceptance and, if the Assignor has retained a Revolving Credit Commitment
and/or Term Loans, as the case may be, upon request, a new Revolving Credit Note
and/or Term Notes, as the case may be, to the Assignor or its registered assigns
in an amount equal to the Revolving Credit Commitment and/or applicable Term
Loans, as the case may be, retained by it hereunder. Such new Note or Notes
shall be dated the Closing Date and shall otherwise be in the form of the Note
or Notes replaced thereby.

                  (f) For the avoidance of doubt, the parties to this Agreement
acknowledge that the provisions of this Section concerning assignments of Loans
and Notes relate only to absolute assignments

                                      -82-
<PAGE>

and that such provisions do not prohibit assignments creating security
interests, including any pledge or assignment by a Lender of any Loan or Note to
any Federal Reserve Bank in accordance with applicable law.

                  10.7 ADJUSTMENTS; SET-OFF.

                  (a) Except to the extent that this Agreement provides for
payments to be allocated to a particular Lender or to the Lenders under a
particular Facility, if any Lender (a "BENEFITED LENDER") shall at any time
receive any payment of all or part of the Obligations owing to it, or receive
any collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in Section
8(f), or otherwise), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of such other
Lender's Obligations, such Benefited Lender shall purchase for cash from the
other Lenders a participating interest in such portion of each such other
Lender's Obligations, or shall provide such other Lenders with the benefits of
any such collateral, as shall be necessary to cause such Benefited Lender to
share the excess payment or benefits of such collateral ratably with each of the
Lenders; PROVIDED, HOWEVER, that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefited Lender, such purchase shall
be rescinded, and the purchase price and benefits returned, to the extent of
such recovery, but without interest.

                  (b) In addition to any rights and remedies of the Lenders
provided by law, each Lender shall have the right, without prior notice to the
Borrower (any such notice being expressly waived by the Borrower to the extent
permitted by applicable law), upon any amount becoming due and payable by the
Borrower hereunder (whether at stated maturity, by acceleration or otherwise),
to set off and appropriate and apply against such amount any and all deposits
(general or special, time or demand, provisional or final), in any currency, and
any other credits, indebtedness or claims, in any currency, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, at any time
held or owing by such Lender or any branch or agency thereof to or for the
credit or the account of the Borrower. Each Lender agrees to notify promptly the
Borrower and the Administrative Agent after any such setoff and application made
by such Lender, PROVIDED that the failure to give such notice shall not affect
the validity of such setoff and application.

                  10.8 COUNTERPARTS. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument. Delivery of an executed signature page of this
Agreement by facsimile transmission shall be effective as delivery of a manually
executed counterpart hereof. A set of the copies of this Agreement signed by all
the parties shall be lodged with the Borrower and the Administrative Agent.

                  10.9 SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                  10.10 INTEGRATION. This Agreement and the other Loan Documents
represent the agreement of the Borrower, the Agents, the Arranger and the
Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Arranger, any Agent or any
Lender relative to subject matter hereof not expressly set forth or referred to
herein or in the other Loan Documents.

                                      -83-
<PAGE>

                  10.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                  10.12 SUBMISSION TO JURISDICTION; WAIVERS. The Borrower hereby
irrevocably and unconditionally:

                  (a) submits for itself and its Property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State of
New York situated in the County of New York, the courts of the United States of
America for the Southern District of New York, and appellate courts from any
thereof;

                  (b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

                  (c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the
Borrower at its address set forth in Section 10.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;

                  (d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

                  (e) waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred
to in this Section any special, exemplary, punitive or consequential damages.

                  10.13 ACKNOWLEDGMENTS. The Borrower hereby acknowledges that:

                  (a) it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents;

                  (b) neither the Arranger, nor any Agent nor any Lender has any
fiduciary relationship with or duty to the Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Arranger, the Agents and the Lenders, on one hand, and
the Borrower, on the other hand, in connection herewith or therewith is solely
that of participants in a debtor and creditor transaction; and

                  (c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Arranger, the Agents and the Lenders or between the Borrower and any
of them.

                  10.14 CONFIDENTIALITY. Each of the Arranger, the Agents and
the Lenders agrees to keep confidential all non-public information provided to
it by any Loan Party pursuant to this Agreement; PROVIDED that nothing herein
shall prevent the Arranger, any Agent or any Lender from disclosing any such
information (a) to the Arranger, any Agent, any other Lender or any affiliate of
any thereof, (b) to any Participant or Assignee (each, a "TRANSFEREE") or
prospective Transferee that agrees to comply with

                                      -84-
<PAGE>

the provisions of this Section or substantially equivalent provisions, (c) to
any of its employees, directors, agents, attorneys, accountants and other
professional advisors involved in the evaluation or administration of the credit
facilities contemplated hereby to the extent that such advisor shall agree to
comply with the provisions of this section, (d) upon the request or demand of
any Governmental Authority having jurisdiction over it, (e) in response to any
order of any court or other Governmental Authority or as may otherwise be
required pursuant to any Requirement of Law, (f) if required to do so in
connection with any litigation or similar proceeding, (g) that has been publicly
disclosed other than in breach of this Section, (h) to the National Association
of Insurance Commissioners or any similar organization or any nationally
recognized rating agency that requires access to information about a Lender's
investment portfolio in connection with ratings issued with respect to such
Lender, (i) to the extent necessary in connection with the exercise of any
remedy hereunder or under any other Loan Document or (j) if such information
constitutes the "tax treatment" and "tax structure" (in each case, within the
meaning of United States Treasury Regulation Section 1.6011-4) of any
transaction contemplated by this Agreement or any other Loan Agreement and any
materials of any kind (including opinions or other tax analyses) that are
provided to the Arranger, any Agent or any Lender relating to such tax treatment
and tax structure.

                  10.15 RELEASE OF COLLATERAL AND GUARANTEE OBLIGATIONS.

                  (a) Notwithstanding anything to the contrary contained herein
or in any other Loan Document, upon request of the Borrower in connection with
any Disposition of Property permitted by the Loan Documents, the Administrative
Agent shall (without notice to or vote or consent of any Lender, or any
affiliate of any Lender that is a party to any Specified Hedge Agreement) take
such actions as shall be required to release its security interest in any
Collateral being Disposed of in such Disposition, and to release any Guarantee
Obligations of any Person being Disposed of in such Disposition, to the extent
necessary to permit consummation of such Disposition in accordance with the Loan
Documents; PROVIDED that the Borrower shall have delivered to the Administrative
Agent, at least five Business Days prior to the date of the proposed release, a
written request for release identifying the relevant Collateral being Disposed
of in such Disposition and the terms of such Disposition in reasonable detail,
including the date thereof, the price thereof and any estimated expenses in
connection therewith, together with a certification by a Responsible Officer of
the Borrower stating that such transaction is in compliance with this Agreement
and the other Loan Documents and that the proceeds of such Disposition will be
applied in accordance with this Agreement and the other Loan Documents.

                  (b) The Administrative Agent shall be, and hereby is,
irrevocably authorized and empowered to release any and all of the Collateral
and take any and all actions necessary therefor or reasonably incidental
thereto, upon request of the Borrower and without notice to or consent of any
Lender or any other holder of Obligations, when all Commitments have terminated,
all Letters of Credit have been discharged, the principal of and interest on all
Loans and Reimbursement Obligations have been paid in full and the
Administrative Agent has received payment in full, or payment security
satisfactory to it, as to all other Obligations that are claimed by the
Administrative Agent or in respect of which the Administrative Agent has
received, reasonably in advance of such release, written notice that any payment
is due or any claim is pending.

                  10.16 ACCOUNTING CHANGES. In the event that any "Accounting
Change" (as defined below) shall occur and such change results in a change in
the method of calculation of financial covenants, standards or terms in this
Agreement, then the Borrower and the Administrative Agent agree to enter into
negotiations in order to amend such provisions of this Agreement so as to
equitably reflect such Accounting Changes with the desired result that the
criteria for evaluating the Borrower's financial condition shall be the same
after such Accounting Changes as if such Accounting Changes had not been made.
Until such time as such an amendment shall have been executed and delivered by
the Borrower, the Administrative Agent and the Required Lenders, all financial
covenants, standards and terms in this

                                      -85-
<PAGE>

Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred. "ACCOUNTING CHANGES" refers to changes in accounting
principles required or permitted by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the SEC.

                  10.17 DELIVERY OF LENDER ADDENDA. Each initial Lender shall
become a party to this Agreement by delivering to the Administrative Agent a
Lender Addendum duly executed by such Lender, the Borrower and the
Administrative Agent.

                  10.18 CONSTRUCTION. Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

                  10.19 WAIVERS OF JURY TRIAL. EACH PARTY HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

                  10.20 DESIGNATED SENIOR DEBT. The Obligations (including the
Guarantee Obligations of each Subsidiary Guarantor under the Guarantee and
Collateral Agreement) are hereby designated as "Designated Senior Debt" for the
purposes of and as defined in the Senior Subordinated Note Indenture and any
indenture governing Exchange Subordinated Debt or Indebtedness incurred in any
Permitted Refinancing under clause (1) of the definition of such term.

        [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY; SIGNATURES FOLLOW.]

                                      -86-
<PAGE>

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

                                   SPANISH BROADCASTING SYSTEM, INC.

                                   By: /s/ Joseph A. Garcia
                                       -----------------------------------------
                                       Name:  Joseph A. Garcia
                                       Title: Executive Vice-President, Chief
                                              Financial Officer and Secretary

                                   LEHMAN COMMERCIAL PAPER INC.,
                                   as Administrative Agent

                                   By: /s/ G. Robert Berzins
                                       -----------------------------------------
                                       Name:  G. Robert Berzins
                                       Title: Vice President

                        SPANISH BROADCASTING SYSTEM, INC.
                                CREDIT AGREEMENT
                                 SIGNATURE PAGE

<PAGE>

                                                                         Annex A

                   PRICING GRID FOR REVOLVING CREDIT LOANS AND
                                SWING LINE LOANS

<TABLE>
<CAPTION>

Consolidated Senior Secured         Applicable Margin for         Applicable Margin for Base
         Debt Ratio                    Eurodollar Loans                   Rate Loans
---------------------------         ---------------------         --------------------------
<S>                                         <C>                             <C>
  equal to or more than                     3.00%                           2.00%
  2.0:1.0
  less than 2.0:1.0 and equal               2.75%                           1.75%
  to or more than 1.5:10
  less than 1.5:1.0                         2.50%                           1.50%

</TABLE>

The Applicable Margin shall be determined on a quarterly basis based on the
Consolidated Senior Leverage Ratio as of the last day of the most recent fiscal
quarter and for the period of four consecutive fiscal quarters then ended,
except that the Applicable Margin will be the highest rate set forth above
(3.00% for Eurodollar Rate Loans and 2.00% for Base Rate Loans) (a) for the
period from the Closing Date until the Grid Effective Date and (b) whenever any
Event of Default is continuing. Changes in the Applicable Margin resulting from
changes in the Consolidated Senior Secured Debt Ratio shall become effective on
the date on which the Compliance and Pricing Certificate for each fiscal quarter
is delivered to the Lenders pursuant to Section 6.1 (but in any event not later
than the 45th day after the end of each of the first three quarterly periods of
each fiscal year or the 90th day after the end of each fiscal year, as the case
may be) and shall remain in effect until the next change to be effected pursuant
to this paragraph. If any Compliance and Pricing Certificate referred to above
is not delivered within the time periods specified above, then, until such
financial statements are delivered, the Consolidated Senior Secured Debt Ratio
as at the end of the fiscal period that would have been covered thereby shall
for the purposes of this definition be deemed to be greater than 2.0 to 1.0.

                                     Annex-1

<PAGE>
                                    EXHIBIT A

                   FORM OF COMPLIANCE AND PRICING CERTIFICATE

         This Compliance and Pricing Certificate is delivered to you pursuant to
Section 6.2(b) of the Credit Agreement, dated as of October 30, 2003, as
amended, supplemented or modified from time to time (the "CREDIT AGREEMENT"),
among SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation (the
"BORROWER"), the several banks and other financial institutions or entities from
time to time party thereto (the "LENDERS"), MERRILL LYNCH, PIERCE FENNER &
SMITH, INCORPORATED and DEUTSCHE BANK SECURITIES INC., as co-documentation
agents (in such capacity, the "CO-DOCUMENTATION AGENTS"), LEHMAN COMMERCIAL
PAPER INC., as syndication agent (in such capacity, the "SYNDICATION AGENT") and
LEHMAN COMMERCIAL PAPER INC., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT"). Terms defined in the Credit Agreement and not otherwise
defined herein are used herein with the meanings so defined.

         1. I am the duly elected, qualified and acting Chief Financial Officer
of the Borrower.

         2. I have reviewed and am familiar with the contents of this
Certificate.

         3. I have reviewed the terms of the Credit Agreement and the Loan
Documents and have made or caused to be made under my supervision, a review in
reasonable detail of the transactions and condition of the Borrower during the
accounting period covered by the financial statements attached hereto as
ATTACHMENT 1 (the "FINANCIAL STATEMENTS"). Such review did not disclose the
existence during or at the end of the accounting period covered by the Financial
Statements, and I have no knowledge of the existence, as of the date of this
Certificate, of any condition or event which constitutes a Default or an Event
of Default [, except as set forth below].

         [DESCRIBE ANY DEFAULT OR EVENT OF DEFAULT, IF APPLICABLE.]

         4. Attached hereto as ATTACHMENT 2 are the computations showing
compliance with the covenants set forth in Sections 7.1, 7.7 and 7.8 of the
Credit Agreement.

         5. Based on the computation of Consolidated Senior Secured Debt Ratio
set forth in ATTACHMENT 2, the Applicable Margins for Revolving Loans and Swing
Line Loans are __% in the case of Eurodollar Loans and ___% in the case of Base
Rate Loans.

         IN WITNESS WHEREOF, I execute this Certificate this _____ day of
______________, ______.

                                       SPANISH BROADCASTING SYSTEM, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      A-1
<PAGE>
                                 Attachment 1 to
                                    Exhibit A

                              Financial Statements

                                      A-2
<PAGE>

                                 Attachment 2 to
                                    Exhibit A

         The information described herein is as of ________________, 200_, and
pertains to the period from ______________, 200_ to ______________, 200_

                       [Set forth covenant calculations.]

                                      A-3
<PAGE>
                                    EXHIBIT B

                                      B-1
<PAGE>
                                    EXHIBIT C

                             FORM OF LENDER ADDENDUM

         Reference is made to the Credit Agreement, dated as of October 30, 2003
(as amended, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT"), among SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation
(the "BORROWER"), the several banks and other financial institutions or entities
from time to time party thereto (the "LENDERS"), MERRILL LYNCH, PIERCE FENNER &
SMITH, INCORPORATED and DEUTSCHE BANK SECURITIES INC., as co-documentation
agents (in such capacity, the "CO-DOCUMENTATION AGENTS"), LEHMAN COMMERCIAL
PAPER INC., as syndication agent (in such capacity, the "SYNDICATION AGENT") and
LEHMAN COMMERCIAL PAPER INC., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT"). Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

         Upon execution and delivery of this Lender Addendum by the parties
hereto as provided in Section 10.17 of the Credit Agreement, the undersigned
hereby becomes a Lender thereunder having the Commitment set forth in Schedule 1
hereto, effective as of the Closing Date.

         THIS LENDER ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         This Lender Addendum may be executed by one or more of the parties
hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
Delivery of an executed signature page hereof by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.

         IN WITNESS WHEREOF, the parties hereto have caused this Lender Addendum
to be duly executed and delivered by their proper and duly authorized officers
as of this ___ day of ______________, 2003.

                                        [NAME OF LENDER]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

Accepted and agreed:

SPANISH BROADCASTING SYSTEM, INC.

By:
    ----------------------------------
    Name:
    Title:

                                      C-1
<PAGE>

LEHMAN COMMERCIAL PAPER INC.,
as Administrative Agent

By:
    ----------------------------------
    Name:
    Title:

                                      C-2
<PAGE>

                                                                      Schedule 1

                                   Commitment

                                                      % of total amount of
                                                      such Commitment from
                                       Amount              All Lenders
                                       ------         --------------------

Term Loan Commitment

Revolving Credit Commitment

                                      C-3
<PAGE>
                                    EXHIBIT D

                           FORM OF NOTICE OF BORROWING

                                ___________, 2003

Lehman Commercial Paper Inc.,
  as Administrative Agent
3 World Financial Center
New York, New York 10285
Attention: _____________

                        SPANISH BROADCASTING SYSTEM, INC.

          Ladies and Gentlemen:

                  Pursuant to Section 2.5 of that certain Credit Agreement,
dated as of October 30, 2003 (as amended, supplemented, replaced or otherwise
modified from time to time, the "CREDIT AGREEMENT"; capitalized terms used but
not defined herein having the meanings given such terms in the Credit
Agreement), among Spanish Broadcasting System, Inc., a Delaware corporation (the
"BORROWER"), each lender from time to time party thereto, the co-documentation
agents named therein, the syndication agent named therein and Lehman Commercial
Paper Inc., as administrative agent (the "ADMINISTRATIVE AGENT"), the Borrower
hereby gives the Administrative Agent irrevocable notice that the Borrower
hereby requests a Loan under the Credit Agreement, and in that connection sets
forth below the information relating to such Loan:

                  (i) The Business Day of the proposed Loan is __________,
200__.

                  (ii) The Type of the proposed Loan is a Base Rate
Loan/Eurodollar Loan.

                  (iii) The aggregate amount of the proposed Loan is
$__,000,000.

                  [(iv) The Interest Period shall be one /two/three/six months.]

                  The Borrower hereby certifies that the following statements
are true and correct on the date hereof, and will be true and correct on the
date of the proposed Loan:

                  (b) Each of the representations and warranties made by any
Loan Party in or pursuant to the Loan Documents is true and correct in all
material respects on and as of the date hereof as if made on and as of the date
hereof (except to the extent that they relate expressly to an earlier date).

                  (c) No Default or Event of Default has occurred and is
continuing on the date hereof, or would result from the proposed Loan or the
application of the proceeds thereof.

                  (d) The proceeds of the $__,000,000 borrowing will be used
solely in accordance with Section 4.16 of the Credit Agreement.

                  (e) The Administrative Agent is authorized and directed to
disburse the proceeds of the $__,000,000 borrowing as set forth in Section 2.5
of the Credit Agreement.

                                      D-1
<PAGE>

                  The Borrower agrees that, if prior to the time of the proposed
Loan any of the foregoing certifications shall cease to be true and correct, the
Borrower shall forthwith notify the Administrative Agent thereof in writing (any
such notice, a "NON-COMPLIANCE NOTICE"). Except to the extent, if any, that
prior to the time of the proposed Loan, the Borrower shall deliver a
Non-Compliance Notice to the Administrative Agent, each of the foregoing
certifications shall be deemed to be made additionally on the date of the
proposed Loan as if made on such date.

                                       Very truly yours,

                                       SPANISH BROADCASTING SYSTEM, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      D-2
<PAGE>
                                    EXHIBIT E

                          FORM OF SOLVENCY CERTIFICATE

                  This Solvency Certificate (this "CERTIFICATE") is delivered in
connection with that certain Credit Agreement, dated as of October 30, 2003 (as
amended, supplemented, replaced or otherwise modified from time to time, the
"CREDIT AGREEMENT"), among SPANISH BROADCASTING SYSTEM, INC., a Delaware
corporation (the "BORROWER"), the several banks and other financial institutions
or entities from time to time party thereto (the "LENDERS"), MERRILL LYNCH,
PIERCE FENNER & SMITH, INCORPORATED and DEUTSCHE BANK SECURITIES INC., as
co-documentation agents (in such capacity, the "CO-DOCUMENTATION AGENTS"),
LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such capacity, the
"SYNDICATION AGENT") and LEHMAN COMMERCIAL PAPER INC., as administrative agent
(in such capacity, the "ADMINISTRATIVE AGENT"). Capitalized terms used but not
defined herein have the meanings given such terms in the Credit Agreement.

                  For purposes of this Certificate, "TRANSACTIONS" means (i) the
fulfillment of all conditions to the making of Loans and the issuance of Letters
of Credit under the Credit Agreement and the funding of such Loans and Letters
of Credit, if any, on the Closing Date, (ii) the execution and delivery of the
Loan Documents, (iii) the repayment, if any, of outstanding Indebtedness on the
Closing Date, (iv) the Preferred Stock issuance, (v) the KXOL Acquisition, and
(vi) the payment of all fees, costs and expenses associated with the foregoing.

                  I hereby certify as of the date hereof on behalf of the Loan
Parties as follows:

                  1. I am the duly qualified and acting Vice President and/or
Chief Financial Officer of each Loan Party and in such capacity am a senior
financial officer with responsibility for the management of the financial
affairs of such Loan Party and the preparation of financial statements of such
Loan Party. I, together with other officers of the Loan Parties, acted on behalf
of each Loan Party in connection with the negotiation and execution of the
Credit Agreement and the other Loan Documents to which any Loan Party is a
party. In connection with the following certifications, I have reviewed the
financial statements of the Loan Parties.

                  2. I have carefully reviewed the contents of this Certificate,
and I have conferred with counsel for the Loan Parties for the purpose of
discussing the meaning of its contents and the purpose for which it is to be
used. I have made such investigations and inquiries as I have deemed to be
necessary and prudent and have reviewed the Credit Agreement and the other Loan
Documents to which any Loan Party is a party. I am providing this certificate
solely in my capacity as an officer of each Loan Party.

                  3. For purposes of delivering this Certificate, I have:

                  (a) made inquiries within the Borrower concerning, among other
matters, pending and threatened litigation, uninsured risks, guaranties of
obligations of other Persons and other contingent obligations and have included
as a liability in my conclusions my best judgment as to the maximum realistic
exposure of each Loan Party to liabilities that would not be included in
reserves otherwise reflected on the consolidated balance sheet of the Borrower
and its Subsidiaries as of June 30, 2003;

                  (b) reviewed the financial statements of each Loan Party; and

                  (c) made such other investigations and inquiries as I have
deemed appropriate and have taken into account the nature of the particular
business anticipated to be conducted by the Loan Parties after consummation of
the Transactions.

                                      E-1
<PAGE>

                  Based upon the foregoing, I have reached the following
conclusions:

                  (i) No Loan Party is now, and the consummation of the
Transactions will not render any Loan Party, "insolvent" as defined below. I
understand that in this context, "insolvent" means that the present fair salable
value of assets of each Loan Party is less than the amount that will be required
to pay its probable liability on its existing debts as they become absolute and
matured. I have assumed that in this context "fair salable value" means the
price available upon the sale of such assets by a willing seller to a willing
buyer, where material information as to the asset and the market for such asset
is known to both, and where the sale is executed with commercially reasonable
promptness. I also understand that (i) the term "debts" includes any liability
on a "claim", and (ii) "claim" means any (x) right to payment, whether or not
such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured
or unsecured or (y) right to an equitable remedy for breach of performance if
such breach gives rise to a right to payment, whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent, matured or
unmatured, disputed, undisputed, secured or unsecured.

                  (ii) No Loan Party will incur, and no Loan Party intended to
incur or believed that it would incur, debts beyond its ability to pay as they
mature as a result of the consummation of the Transactions. I have concluded
that the cash flow and cash resources (including earnings plus non-cash charges
to earnings and, to the extent permitted under the Credit Agreement, the
disposition of assets held for sale) of such Loan Party will be sufficient to
provide cash necessary to repay indebtedness and liabilities of such Loan Party
(including, in the case of the Borrower, the indebtedness and liabilities of the
Borrower under the Credit Agreement, any Notes and any outstanding Letters of
Credit) as such debts and liabilities mature.

                  (iii) The consummation of the Transactions will not leave any
Loan Party with property remaining in its hands constituting "unreasonably small
capital." I have assumed for purposes of reaching this conclusion that
"unreasonably small capital" depends upon the nature of the particular business
or businesses conducted or to be conducted, and I have reached my conclusion
based on the needs and anticipated needs for capital of the businesses conducted
or anticipated to be conducted by each Loan Party in light of the Projections
and available credit capacity.

                  (iv) No Loan Party has executed the Credit Agreement, any
Notes, any Letters of Credit or any other Loan Documents, in each case, to which
such Loan Party is a party or made any transfer or incurred any obligations in
connection with the Transactions, with actual intent to hinder, delay or defraud
either present or future creditors.

                  I understand that the Secured Parties are relying on the truth
and accuracy of the foregoing in connection with each extension of credit to the
Borrower pursuant to the Credit Agreement and the other Loan Documents.

                  I represent the foregoing information to be, to the best of my
knowledge and belief, after diligent inquiry, true and correct and execute this
Solvency Certificate as the Vice President and/or Chief Financial Officer of
each Loan Party as of the ___ day of __________, 2003.

                            [SIGNATURE PAGE FOLLOWS]

                                      E-2
<PAGE>

                  IN WITNESS WHEREOF, the undersigned has duly executed this
Solvency Certificate as of the date first written above.

SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation
SPANISH BROADCASTING SYSTEM FINANCE CORPORATION, a Delaware corporation
SPANISH BROADCASTING SYSTEM OF GREATER MIAMI, INC.
SPANISH BROADCASTING SYSTEM OF ILLINOIS, INC.
SPANISH BROADCASTING SYSTEM, INC., a New Jersey corporation
SPANISH BROADCASTING SYSTEM OF SAN ANTONIO, INC.
ALARCON HOLDINGS, INC.
SPANISH BROADCASTING SYSTEM OF CALIFORNIA, INC.
SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC., a Delaware corporation
SPANISH BROADCASTING SYSTEM OF FLORIDA, INC.
SBS OF GREATER NEW YORK, INC.
SBS FUNDING, INC.
SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC., a Puerto Rico corporation
SPANISH BROADCASTING SYSTEM NETWORK, INC.
SBS PROMOTIONS, INC.
SPANISH BROADCASTING SYSTEM SOUTHWEST, INC.
SPANISH BROADCASTING SYSTEM-SAN FRANCISCO, INC.
WRMA LICENSING, INC.
WXDJ LICENSING, INC.
WDEK LICENSING, INC.
WKIE LICENSING, INC.
WKIF LICENSING, INC.
WLEY LICENSING, INC.
WSKQ LICENSING, INC.
KLEY LICENSING, INC.
KSAH LICENSING, INC.
KZAB LICENSING, INC.
KZBA LICENSING, INC.
KPTI LICENSING, INC.
WCMQ LICENSING, INC.
KLAX LICENSING, INC.
WPAT LICENSING, INC.
WCMA LICENSING, INC.
WZET LICENSING, INC.
WMEG LICENSING, INC.
KXOL LICENSING, INC.

By:
   ------------------------------------------------------
   Name:
   Title:   Vice President and/or Chief Financial Officer
               of each Loan Party

                                      E-3
<PAGE>
                                   EXHIBIT F-1

                                FORM OF TERM NOTE

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED EXCEPT
IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO
BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE
RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE
TERMS OF SUCH CREDIT AGREEMENT.

$___________                                                  New York, New York
                                                              --------- ---, ---

                  FOR VALUE RECEIVED, the undersigned, SPANISH BROADCASTING
SYSTEM, INC., a Delaware corporation (the "BORROWER"), hereby unconditionally
promises to pay to _____________ (the "LENDER") or its registered assigns at the
Payment Office specified in the Credit Agreement (as hereinafter defined) in
lawful money of the United States and in immediately available funds, the
principal amount of (a) _______________ DOLLARS ($______), or, if less, (b) the
unpaid principal amount of the Term Loan outstanding to the Lender made pursuant
to Section 2.1 of the Credit Agreement. The principal amount shall be paid in
the amounts and on the dates specified in Section 2.3 of the Credit Agreement.
The Borrower further agrees to pay interest in like money at such office on the
unpaid principal amount hereof from time to time outstanding at the rates and on
the dates specified in Section 2.15 of the Credit Agreement.

                  The holder of this Note is authorized to endorse on the
schedules annexed hereto and made a part hereof, or on a continuation thereof
that shall be attached hereto and made a part hereof, the date, Type and amount
of the Term Loan and the date and amount of each payment or prepayment of
principal with respect thereto, each conversion of all or a portion thereof to
another Type, each continuation of all or a portion thereof as the same Type
and, in the case of Eurodollar Loans, the length of each Interest Period with
respect thereto. Each such endorsement shall constitute prima facie evidence of
the accuracy of the information endorsed. The failure to make any such
endorsement or any error in any such endorsement shall not affect the
obligations of the Borrower in respect of the Term Loan.

                  This Note (a) is one of the Term Notes referred to in the
Credit Agreement dated as of October 30, 2003 (as amended, supplemented or
otherwise modified from time to time, the "CREDIT AGREEMENT"), among the
Borrower, the Lender, the several other banks and financial institutions or
entities from time to time party thereto, as lenders, Merrill Lynch, Pierce
Fenner & Smith, Incorporated and Deutsche Bank Securities Inc., as
Co-Documentation Agents, Lehman Commercial Paper Inc., as Syndication Agent, and
Lehman Commercial Paper Inc., as Administrative Agent, (b) is subject to the
provisions of the Credit Agreement and (c) is subject to optional and mandatory
prepayment in whole or in part as provided in the Credit Agreement. This Note is
secured and guaranteed as provided in the Loan Documents. Reference is hereby
made to the Loan Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the
security and the guarantees, the terms and conditions upon which the security
interests and each guarantee were granted and the rights of the holder of this
Note in respect thereof.

                  Upon the occurrence of any one or more of the Events of
Default, all principal and all accrued interest then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable, all as
provided in the Credit Agreement.

                                      F1-1
<PAGE>

                  All parties now and hereafter liable with respect to this
Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby
waive presentment, demand, protest and all other notices of any kind.

                  Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement

                  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR
IN THE CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND
IN ACCORDANCE WITH THE REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6 OF THE
CREDIT AGREEMENT.

                  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                                       SPANISH BROADCASTING SYSTEM, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      F1-2
<PAGE>
                                   SCHEDULE A
                                  to Term Note

                          LOANS AND REPAYMENTS OF LOANS

<TABLE>
<CAPTION>

                                                                                                                IF
                                                                                                            EURODOLLAR
                                          AMOUNT OF        UNPAID          AMOUNT OF         AMOUNT OF         LOAN,
                                        PRINCIPAL OF     PRINCIPAL       CONVERSION OF    CONTINUATION OF    LENGHT OF
                           AMOUNT OF     TERM LOANS      BALANCE OF      TERM LOAN TO      TERM LOAN AS      INTEREST     NOTATION
     DATE         TYPE     TERM LOAN       REPAID        TERM LOANS      ANOTHER TYPE       SAME TYPE         PERIOD       MADE BY
     ----         ----     ---------    ------------     ----------      -------------    ----------------  -----------   --------

<S>              <C>       <C>          <C>              <C>              <C>              <C>               <C>           <C>
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------

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</TABLE>

                                      F1-3
<PAGE>

                                   EXHIBIT F-2

                          FORM OF REVOLVING CREDIT NOTE

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED EXCEPT
IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO
BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE
RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE
TERMS OF SUCH CREDIT AGREEMENT.

$_____________                                                New York, New York
                                                           ---------- ----, ----

                  FOR VALUE RECEIVED, the undersigned, SPANISH BROADCASTING
SYSTEM, INC., a Delaware corporation (the "BORROWER"), hereby unconditionally
promises to pay to __________________ (the "LENDER") or its registered assigns
at the Payment Office specified in the Credit Agreement (as hereinafter defined)
in lawful money of the United States and in immediately available funds, on the
Revolving Credit Termination Date the principal amount of (a) ___________
DOLLARS ($_______), or, if less, (b) the aggregate unpaid principal amount of
all Revolving Credit Loans outstanding to the Lender made pursuant to Section
2.4 of the Credit Agreement. The Borrower further agrees to pay interest in like
money at such Payment Office on the unpaid principal amount hereof from time to
time outstanding at the rates and on the dates specified in Section 2.15 of the
Credit Agreement.

                  The holder of this Note is authorized to endorse on the
schedules annexed hereto and made a part hereof, or on a continuation thereof
that shall be attached hereto and made a part hereof, the date, Type and amount
of each Revolving Credit Loan made pursuant to the Credit Agreement and the date
and amount of each payment or prepayment of principal thereof, each continuation
thereof, each conversion of all or a portion thereof to another Type and, in the
case of Eurodollar Loans, the length of each Interest Period with respect
thereto. Each such endorsement shall constitute PRIMA FACIE evidence of the
accuracy of the information endorsed. The failure to make any such endorsement
or any error in any such endorsement shall not affect the obligations of the
Borrower in respect of any Revolving Credit Loan.

                  This Note (a) is one of the Revolving Credit Notes referred to
in the Credit Agreement dated as of October 30, 2003 (as amended, supplemented
or otherwise modified from time to time, the "CREDIT AGREEMENT"), among the
Borrower, the Lender, the several other banks and financial institutions or
entities from time to time party thereto, as lenders, Merrill Lynch, Pierce
Fenner & Smith, Incorporated and Deutsche Bank Securities Inc., as
Co-Documentation Agents, Lehman Commercial Paper Inc., as Syndication Agent, and
Lehman Commercial Paper Inc., as Administrative Agent, (b) is subject to the
provisions of the Credit Agreement and (c) is subject to optional and mandatory
prepayment in whole or in part as provided in the Credit Agreement. This Note is
secured and guaranteed as provided in the Loan Documents. Reference is hereby
made to the Loan Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the
security and the guarantees, the terms and conditions upon which the security
interests and each guarantee were granted and the rights of the holder of this
Note in respect thereof.

                  Upon the occurrence of any one or more of the Events of
Default, all principal and all accrued interest then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable, all as
provided in the Credit Agreement.

                                      F2-1
<PAGE>

                  All parties now and hereafter liable with respect to this
Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby
waive presentment, demand, protest and all other notices of any kind.

                  Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

                  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR
IN THE CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND
IN ACCORDANCE WITH THE REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6 OF THE
CREDIT AGREEMENT.

                  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                                       SPANISH BROADCASTING SYSTEM, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      F2-2
<PAGE>
                                   SCHEDULE A
                            TO REVOLVING CREDIT NOTE

                          LOANS AND REPAYMENTS OF LOANS

<TABLE>
<CAPTION>

                                                                           AMOUNT OF
                                          AMOUNT OF       UNPAID         CONVERSION OF        AMOUNT OF
                                        PRINCIPAL OF     PRINCIPAL         REVOLVING        CONTINUATION    IF EURODOLLAR
                           AMOUNT OF     REVOLVING       BALANCE OF       CREDIT LOAN       OF REVOLVING     LOAN, LENGTH
                           REVOLVING    CREDIT LOANS     REVOLVING        TO ANOTHER        CREDIT LOAN      OF INTEREST   NOTATION
     DATE         TYPE    CREDIT LOAN      REPAID       CREDIT LOANS         TYPE           AS SAME TYPE       PERIOD       MADE BY
     ----         ----    -----------   ------------    ------------     -------------     --------------   -------------  --------

<S>              <C>       <C>          <C>              <C>              <C>              <C>               <C>           <C>
-----------------------------------------------------------------------------------------------------------------------------------

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</TABLE>

                                      F2-3
<PAGE>
                                   EXHIBIT F-3

                             FORM OF SWING LINE NOTE

                  THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE
TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT
AGREEMENT REFERRED TO BELOW. TRANSFERS OF THIS NOTE AND THE OBLIGATIONS
REPRESENTED HEREBY MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE
ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH CREDIT AGREEMENT.

$______________________                                       New York, New York
                                                          --------------, ------

                  FOR VALUE RECEIVED, the undersigned, SPANISH BROADCASTING
SYSTEM, INC., a Delaware corporation (the "BORROWER"), hereby unconditionally
promises to pay to LEHMAN COMMERCIAL PAPER INC. (the "SWING LINE LENDER") or its
registered assigns at the Payment Office specified in the Credit Agreement (as
hereinafter defined) in lawful money of the United States and in immediately
available funds, on the Revolving Credit Termination Date the principal amount
of (a) _______________ DOLLARS ($__________________), or, if less, (b) the
aggregate unpaid principal amount of all Swing Line Loans outstanding to the
Swing Line Lender made pursuant to Section 2.6 of the Credit Agreement, as
hereinafter defined. The Borrower further agrees to pay interest in like money
at such office on the unpaid principal amount hereof from time to time
outstanding at the rates and on the dates specified in Section 2.15 of such
Credit Agreement.

                  The holder of this Note is authorized to endorse on the
schedules annexed hereto and made a part hereof, or on a continuation thereof
that shall be attached hereto and made a part hereof, the date and amount of
each Swing Line Loan made pursuant to the Credit Agreement and the date and
amount of each payment or prepayment of principal thereof. Each such endorsement
shall constitute prima facie evidence of the accuracy of the information
endorsed. The failure to make any such endorsement or any error in any such
endorsement shall not affect the obligations of the Borrower in respect of any
Swing Line Loan.

                  This Note (a) is the Swing Line Note referred to in the Credit
Agreement dated as of October 30, 2003 (as amended, supplemented or otherwise
modified from time to time, the "CREDIT AGREEMENT"), among the Borrower, the
Swing Line Lender, the several other banks and financial institutions or
entities from time to time party thereto, as lenders, Merrill Lynch, Pierce
Fenner & Smith, Incorporated and Deutsche Bank Securities Inc., as
Co-Documentation Agents, Lehman Commercial Paper Inc., as Syndication Agent, and
Lehman Commercial Paper Inc., as Administrative Agent, (b) is subject to the
provisions of the Credit Agreement and (c) is subject to optional and mandatory
prepayment in whole or in part as provided in the Credit Agreement. This Note is
secured and guaranteed as provided in the Loan Documents. Reference is hereby
made to the Loan Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the
security and the guarantees, the terms and conditions upon which the security
interests and each guarantee were granted and the rights of the holder of this
Note in respect thereof.

                  Upon the occurrence of any one or more of the Events of
Default, all principal and all accrued interest then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable, all as
provided in the Credit Agreement.

                                      F3-1
<PAGE>

                  All parties now and hereafter liable with respect to this
Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby
waive presentment, demand, protest and all other notices of any kind.

                  Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.

                  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR
IN THE CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND
IN ACCORDANCE WITH THE REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6 OF THE
CREDIT AGREEMENT.

                  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SPANISH BROADCASTING SYSTEM, INC.

By:
    -------------------------------------
    Name:
    Title:

                                      F3-2
<PAGE>
                                   SCHEDULE A
                               TO SWING LINE NOTE

                          LOANS AND REPAYMENTS OF LOANS

<TABLE>
<CAPTION>

                                                              AMOUNT OF                       UNPAID
                                     AMOUNT OF             PRINCIPAL OF SWING            PRINCIPAL BALANCE OF
              DATE               SWING LINE LOANS          LINE LOANS REPAID                SWING LINE LOANS       NOTATION MADE BY
              ----               ----------------          ------------------            --------------------      ----------------

<S>                              <C>                       <C>                          <C>                         <C>
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</Table>

                                      F3-3
<PAGE>
                                    EXHIBIT G

                          FORM OF EXEMPTION CERTIFICATE

                  Reference is made to the Credit Agreement, dated as of October
30, 2003 (as amended, supplemented or otherwise modified from time to time, the
"CREDIT AGREEMENT") among SPANISH BROADCASTING SYSTEM, INC., a Delaware
corporation (the "BORROWER"), the several banks and other financial institutions
or entities from time to time party thereto (the "LENDERS"), MERRILL LYNCH,
PIERCE FENNER & SMITH, INCORPORATED and DEUTSCHE BANK SECURITIES INC., as
co-documentation agents (in such capacity, the "CO-DOCUMENTATION AGENTS"),
LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such capacity, the
"SYNDICATION AGENT") and LEHMAN COMMERCIAL PAPER INC., as administrative agent
(in such capacity, the "ADMINISTRATIVE AGENT"). Capitalized terms used herein
that are not defined herein shall have the meanings ascribed to them in the
Credit Agreement. _________ (the "NON-U.S. LENDER") is providing this
certificate pursuant to Section 2.20(f) of the Credit Agreement. The Non-U.S.
Lender hereby represents and warrants that:

                  1. The Non-U.S. Lender is the sole record and beneficial owner
of the Loans or the obligations evidenced by the Note(s) in respect of which it
is providing this Certificate.

                  2. The Non-U.S. Lender is not a "bank" for purposes of Section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the "CODE"). In
this regard, the Non-U.S. Lender further represents and warrants that:

                  (a) the Non-U.S. Lender is not subject to regulatory or other
legal requirements as a bank in any jurisdiction; and

                  (b) the Non-U.S. Lender has not been treated as a bank for
purposes of any tax, securities law or other filing or submission made to any
Governmental Authority, any application made to a rating agency or qualification
for any exemption from tax, securities law or other legal requirements;

                  3. The Non-U.S. Lender is not a 10-percent shareholder of the
Borrower within the meaning of Section 881(c)(3)(B) of the Code; and

                  4. The Non-U.S. Lender is not a controlled foreign corporation
receiving interest from a related person within the meaning of Section
881(c)(3)(C) of the Code.

                  IN WITNESS WHEREOF, the undersigned has duly executed this
Certificate.

                                       [NAME OF NON-U.S. LENDER]

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

Date:
     ------------------------------

                                      G-1
<PAGE>

                                    EXHIBIT H

                           FORM OF CLOSING CERTIFICATE

                  Pursuant to Section 5.1(i) of the Credit Agreement dated as of
October 30, 2003 (the "CREDIT AGREEMENT"; terms defined therein being used
herein as therein defined), among SPANISH BROADCASTING SYSTEM, INC., a Delaware
corporation (the "BORROWER"), the several banks and other financial institutions
or entities from time to time party thereto (the "LENDERS"), MERRILL LYNCH,
PIERCE FENNER & SMITH, INCORPORATED and DEUTSCHE BANK SECURITIES INC., as
co-documentation agents (in such capacity, the "CO-DOCUMENTATION AGENTS"),
LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such capacity, the
"SYNDICATION AGENT") and LEHMAN COMMERCIAL PAPER INC., as administrative agent
(in such capacity, the "ADMINISTRATIVE AGENT"), the undersigned [INSERT TITLE OF
OFFICER] of [INSERT NAME OF COMPANY] (the "COMPANY") hereby certifies as
follows:

                  1. The representations and warranties of the Company set forth
in each of the Loan Documents to which it is a party or which are contained in
any certificate furnished by or on behalf of the Company pursuant to any of the
Loan Documents to which it is a party are true and correct in all material
respects on and as of the date hereof with the same effect as if made on the
date hereof, except for representations and warranties expressly stated to
relate to a specific earlier date, in which case such representations and
warranties were true and correct in all material respects as of such earlier
date.

                  2. ____________ is the duly elected and qualified Corporate
Secretary of the Company and the signature set forth for such officer below is
such officer's true and genuine signature.

                  3. No Default or Event of Default has occurred and is
continuing as of the date hereof or after giving effect to the Loans to be made
on the date hereof and the other transactions to be completed on the Closing
Date, all as contemplated by the Loan Documents. [BORROWER ONLY.]

                  4. The conditions precedent set forth in Section 5.1 of the
Credit Agreement were satisfied as of the Closing Date except as set forth on
Schedule I hereto. [BORROWER ONLY.]

                  5. Attached hereto as Attachment 1 is a calculation
demonstrating that Adjusted EBITDA for the 12 month period ended June 30, 2003
was at least $41,500,000.

                  The undersigned Corporate Secretary of the Company certifies
as follows:

                  1. There are no liquidation or dissolution proceedings pending
or to my knowledge threatened against the Company, nor has any other event
occurred adversely affecting or threatening the continued corporate existence of
the Company.

                  2. The Company is a corporation duly incorporated, validly
existing and in good standing under the laws of the jurisdiction of its
organization.

                  3. Attached hereto as ANNEX 1 is a true and complete copy of
resolutions duly adopted by the Board of Directors of the Company on
________________; such resolutions have not in any way been amended, modified,
revoked or rescinded, have been in full force and effect since their adoption to
and including the date hereof and are now in full force and effect [and are the
only corporate proceedings of the Company now in force relating to or affecting
the matters referred to therein.]

                                       H-1
<PAGE>

                  4. Attached hereto as ANNEX 2 is a true and complete copy of
the By-Laws of the Company as in effect on the date hereof.

                  5. Attached hereto as ANNEX 3 is a true and complete copy of
the Certificate of Incorporation of the Company as in effect on the date hereof,
and such certificate has not been amended, repealed, modified or restated.

                  6. The following persons are now duly elected and qualified
officers of the Company holding the offices indicated next to their respective
names below, and such officers have held such offices with the Company at all
times since the date indicated next to their respective titles to and including
the date hereof, and the signatures appearing opposite their respective names
below are the true and genuine signatures of such officers, and each of such
officers is duly authorized to execute and deliver on behalf of the Company each
of the Loan Documents to which it is a party and any certificate or other
document to be delivered by the Company pursuant to the Loan Documents to which
it is a party:

         NAME               OFFICE                DATE                SIGNATURE

                  IN WITNESS WHEREOF, the undersigned have hereunto set our
names as of the date set forth below.

-----------------------------------      ---------------------------------------
Name:                                    Name:
Title:                                   Title:

Date:    ____________________, ________

                                       H-2
<PAGE>
                                    EXHIBIT I

                                      I-1

<PAGE>
                                    EXHIBIT J

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                  Reference is made to the Credit Agreement, dated as of October
30, 2003 (as amended, supplemented or otherwise modified from time to time, the
"CREDIT AGREEMENT"), among SPANISH BROADCASTING SYSTEM, INC., a Delaware
corporation (the "BORROWER"), the several banks and other financial institutions
or entities from time to time party thereto (the "LENDERS"), MERRILL LYNCH,
PIERCE FENNER & SMITH, INCORPORATED and DEUTSCHE BANK SECURITIES INC., as
co-documentation agents (in such capacity, the "CO-DOCUMENTATION AGENTS"),
LEHMAN COMMERCIAL PAPER INC., as syndication agent (in such capacity, the
"SYNDICATION AGENT") and LEHMAN COMMERCIAL PAPER INC., as administrative agent
(in such capacity, the "ADMINISTRATIVE AGENT"). Unless otherwise defined herein,
terms defined in the Credit Agreement and used herein shall have the meanings
given to them in the Credit Agreement.

                  The Assignor identified on Schedule I hereto (the "ASSIGNOR")
and the Assignee identified on Schedule I hereto (the "ASSIGNEE") agree as
follows:

                  1. The Assignor hereby irrevocably sells and assigns to the
Assignee without recourse to the Assignor, and the Assignee hereby irrevocably
purchases and assumes from the Assignor without recourse to the Assignor, as of
the Effective Date (as defined below), the interest described in Schedule I
hereto (the "ASSIGNED INTEREST") in and to the Assignor's rights and obligations
under the Credit Agreement with respect to those credit facilities contained in
the Credit Agreement as are set forth on Schedule I hereto (individually, an
"ASSIGNED FACILITY" collectively, the "ASSIGNED FACILITIES"), in a principal
amount for each Assigned Facility as set forth on Schedule I hereto.

                  2. The Assignor (a) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or with
respect to the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other Loan Document or any
other instrument or document furnished pursuant thereto, other than that the
Assignor has not created any adverse claim upon the interest being assigned by
it hereunder and that such interest is free and clear of any such adverse claim;
(b) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower, any of its Subsidiaries or
any other obligor or the performance or observance by the Borrower, any of its
Subsidiaries or any other obligor of any of their respective obligations under
the Credit Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto; and (c) attaches any Notes held
by it evidencing the Assigned Facilities and (i) requests that the
Administrative Agent, upon request by the Assignee, exchange the attached Notes
for a new Note or Notes payable to the Assignee and (ii) if the Assignor has
retained any interest in the Assigned Facility, requests that the Administrative
Agent exchange the attached Notes for a new Note or Notes payable to the
Assignor, in each case in amounts which reflect the assignment being made hereby
(and after giving effect to any other assignments which have become effective on
the Effective Date).

                  3. The Assignee (a) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (b) confirms that it
has received a copy of the Credit Agreement, together with copies of the
financial statements delivered pursuant to Section 4.1 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (c) agrees
that it will, independently and without reliance upon the Assignor, the
Arranger, the Agents or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking

                                      J-1
<PAGE>

action under the Credit Agreement, the other Loan Documents or any other
instrument or document furnished pursuant hereto or thereto; (d) appoints and
authorizes the Agents to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement, the other Loan Documents
or any other instrument or document furnished pursuant hereto or thereto as are
delegated to the Agents by the terms thereof, together with such powers as are
incidental thereto; and (e) agrees that it will be bound by the provisions of
the Credit Agreement and will perform in accordance with its terms all the
obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligations pursuant to Section
2.20(f) of the Credit Agreement.

                  4. The effective date of this Assignment and Acceptance shall
be the Effective Date of Assignment described in Schedule I hereto (the
"EFFECTIVE DATE"). Following the execution of this Assignment and Acceptance, it
will be delivered to the Administrative Agent for acceptance by it and recording
by the Administrative Agent pursuant to the Credit Agreement, effective as of
the Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).

                  5. Upon such acceptance and recording, from and after the
Effective Date, the Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and other
amounts) [to the Assignor for amounts that have accrued to the Effective Date
and to the Assignee for amounts that have accrued subsequent to the Effective
Date] [to the Assignee whether such amounts have accrued prior to the Effective
Date or accrue subsequent to the Effective Date. The Assignor and the Assignee
shall make all appropriate adjustments in payments by the Agent for periods
prior to the Effective Date or with respect to the making of this assignment
directly between themselves.]

                  6. From and after the Effective Date, (a) the Assignee shall
be a party to the Credit Agreement and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and under the other Loan Documents and shall be bound by the
provisions thereof and (b) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Credit Agreement.

                  7. This Assignment and Acceptance shall be governed by and
construed in accordance with the laws of the State of New York.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed as of the date first above written by
their respective duly authorized officers on Schedule 1 hereto.

                                      J-2
<PAGE>

                                   Schedule I
                          to Assignment and Acceptance

Name of Assignor: ______________________________________________________________

Name of Assignee: ______________________________________________________________

Effective Date of Assignment: __________________________________________________

<Table>
<Caption>

            Credit Facility                        Principal Amount                Commitment Percentage
                Assigned                                Assigned                         Assigned
            ---------------                        ----------------                ---------------------

<S>                                                 <C>                               <C>
                                                    $--------------                   ----.-----------%

</Table>

[Name of Assignee]                       [Name of Assignor]

By:                                       By:
    -------------------------------           ----------------------------------
Title:                                        Title:

                                      J-3
<PAGE>

Accepted                                  Consented

LEHMAN COMMERCIAL PAPER INC.              SPANISH BROADCASTING SYSTEM, INC.

By:                                       By:
    -------------------------------           ----------------------------------
Title:                                        Title:

                                      J-4<PAGE>
                                                                    Exhibit 10.4

                       GUARANTEE AND COLLATERAL AGREEMENT

                          DATED AS OF October 30, 2003

                                       BY

                        SPANISH BROADCASTING SYSTEM, INC.

                        AND CERTAIN OF ITS SUBSIDIARIES,

                                  AS GRANTORS,

                                   IN FAVOR OF

                          LEHMAN COMMERCIAL PAPER INC.,

                             AS ADMINISTRATIVE AGENT

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                       PAGE
                                                                                                       ----

<S>                                                                                                    <C>
Section 1.        Definitions...........................................................................1

         1.01.    Definition of Terms Used Herein Generally.............................................1

         1.02.    Definition of Certain Terms Used Herein...............................................1

         1.03.    Rules of Interpretation...............................................................7

Section 2.        Guarantee.............................................................................7

         2.01.    Guarantee.............................................................................7

         2.02.    Right of Contribution.................................................................8

         2.03.    Subrogation...........................................................................8

         2.04.    Amendments, etc. with respect to the Borrower Obligations.............................9

         2.05.    Guarantee Absolute and Unconditional..................................................9

         2.06.    Reinstatement........................................................................10

         2.07.    Payments.............................................................................10

Section 3.        Grant of Security Interest...........................................................10

Section 4.        Authorization to File Financing Statements...........................................11

Section 5.        Relation to Other Security Documents.................................................12

         5.01.    Real Estate Documents................................................................12

         5.02.    Patent and Trademark Security Agreement Supplements..................................12

         5.03.    Copyright Security Agreement Supplement..............................................12

Section 6.        Representations and Warranties.......................................................12

         6.01.    Grantors' Legal Status...............................................................12

         6.02.    Grantors' Legal Names................................................................12

         6.03.    Grantors' Locations..................................................................12

         6.04.    Representations in the Credit Agreement..............................................13

         6.05.    Title to Collateral..................................................................13

         6.06.    Nature of Collateral.................................................................13

         6.07.    Compliance with Laws.................................................................14

         6.08.    Validity of Security Interest........................................................14

         6.09.    Perfection Certificate; Intellectual Property Filings................................14

         6.10.    Investment Property..................................................................14

         6.11.    Receivables..........................................................................15

Section 7.        Covenants............................................................................15

         7.01.    Grantors' Legal Status...............................................................15
</TABLE>

                                      -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                       PAGE
                                                                                                       ----

<S>                                                                                                    <C>

         7.02.    Grantors' Names......................................................................15

         7.03.    Grantors' Organizational Numbers.....................................................15

         7.04.    Locations............................................................................15

         7.05.    Covenants in Credit Agreement........................................................15

         7.06.    Promissory Notes and Tangible Chattel Paper..........................................15

         7.07.    Deposit Accounts.....................................................................15

         7.08.    Investment Property..................................................................16

         7.09.    Collateral in the Possession of a Bailee.............................................18

         7.10.    Electronic Chattel Paper and Transferable Records....................................18

         7.11.    Letter-of-Credit Rights..............................................................19

         7.12.    Commercial Tort Claims...............................................................19

         7.13.    Intellectual Property................................................................19

         7.14.    Maintenance of Collateral; Compliance with Laws......................................22

         7.15.    Dispositions of Collateral...........................................................22

         7.16.    Maintenance of Insurance.............................................................22

         7.17.    Periodic Certification...............................................................22

         7.18.    Other Actions as to any and all Collateral...........................................23

Section 8.        Inspection and Verification..........................................................23

Section 9.        Collateral Protection Expenses; Preservation of Collateral...........................23

         9.01.    Expenses Incurred by the Administrative Agent........................................23

         9.02.    Administrative Agent's Obligations and Duties........................................23

         9.03.    Duties as to Pledged Securities......................................................24

         9.04.    Use of Collateral....................................................................25

Section 10.       Securities and Deposits..............................................................25

Section 11.       Notification to Account Debtors and Other Persons Obligated on Collateral............26

Section 12.       Power of Attorney....................................................................26

         12.01.   Appointment and Powers of Administrative Agent.......................................26

         12.02.   Failure of Grantor to Perform........................................................28

         12.03.   Expenses of Attorney-in-Fact.........................................................28

         12.04.   Ratification by Grantor..............................................................28

         12.05.   No Duty on Secured Party.............................................................28

Section 13.       Remedies.............................................................................28
</TABLE>

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                       PAGE
                                                                                                       ----

<S>                                                                                                    <C>

         13.01.   Default..............................................................................28

         13.02.   Remedies Upon Default................................................................28

         13.03.   Grant of License to Use Intellectual Property........................................30

         13.04.   Waivers by Grantors..................................................................30

         13.05.   Application of Proceeds..............................................................30

         13.06.   Surplus, Deficiency..................................................................31

         13.07.   Information Related to the Collateral................................................31

         13.08.   Sale Exempt from Registration........................................................31

         13.09.   Rights and Remedies Cumulative.......................................................32

         13.10.   No Direct Enforcement by Secured Parties.............................................32

Section 14.       Standards for Exercising Remedies....................................................32

         14.01.   Commercially Reasonable Manner.......................................................32

         14.02.   Standard of Care.....................................................................33

Section 15.       Waivers by Grantor; Obligations Absolute.............................................33

         15.01.   Specific Waivers.....................................................................33

         15.02.   Obligations Absolute.................................................................33

Section 16.       Marshalling..........................................................................33

Section 17.       Interest.............................................................................34

Section 18.       Reinstatement........................................................................34

Section 19.       Miscellaneous........................................................................34

         19.01.   Notices..............................................................................34

         19.02.   GOVERNING LAW; CONSENT TO JURISDICTION...............................................34

         19.03.   WAIVER OF JURY TRIAL, ETC............................................................34

         19.04.   Counterparts.........................................................................35

         19.05.   Headings.............................................................................35

         19.06.   No Strict Construction...............................................................35

         19.07.   Severability.........................................................................35

         19.08.   Survival of Agreement................................................................35

         19.09.   Fees and Expenses; Indemnification...................................................35

         19.10.   Binding Effect; Several Agreement....................................................36

         19.11.   Waivers; Amendment...................................................................36

         19.12.   Set-Off..............................................................................36
</TABLE>

                                     -iii-
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                       PAGE
                                                                                                       ----

<S>                                                                                                    <C>

         19.13.   Integration..........................................................................37

         19.14.   Acknowledgments......................................................................37

         19.15.   Additional Grantors and Guarantors...................................................37

         19.16.   Releases.............................................................................37

         19.17.   Intercompany Debt....................................................................38

SCHEDULES

7.07(a)  Principal Deposit Accounts
7.07(b)  Local Deposit Accounts

EXHIBITS

A        Perfection Certificate
B        Form of Copyright Security Agreement Supplement
C        Form of Patent Security Agreement Supplement
D        Form of Trademark Security Agreement Supplement
E        Form of Control Agreement (Deposit Accounts)
F        Form of Control Agreement (Uncertificated Securities)
G        Form of Control Agreement (Securities Accounts)
H        Form of Control Agreement (Commodities Contracts)
I        Form of Control Agreement (Letter-of-Credit Rights)

ANNEXES

1        Form of Assumption Agreement

</TABLE>

                                      -iv-

<PAGE>

         GUARANTEE AND COLLATERAL AGREEMENT, dated as of October 30, 2003, by
each of the signatories hereto identified on the signature pages hereto as a
grantor (together with any other entity that may become a party hereto as
provided herein, each a "GRANTOR" and collectively, jointly and severally, the
"GRANTORS") in favor of Lehman Commercial Paper Inc. as Administrative Agent (in
such capacity, the "ADMINISTRATIVE AGENT") for (i) the banks and other financial
institutions or entities (the "LENDERS") from time to time parties to the Credit
Agreement, dated as of October 30, 2003 (as amended, supplemented or otherwise
modified from time to time, the "CREDIT AGREEMENT") among Spanish Broadcasting
System, Inc., a Delaware corporation (the "BORROWER"), the Lenders, the
Arranger, the Syndication Agent, the Co-Documentation Agents and the
Administrative Agent and (ii) the other Secured Parties (as hereinafter
defined).

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, pursuant to the Credit Agreement, the Lenders have severally
agreed to make extensions of credit to the Borrower upon the terms and
conditions set forth therein;

         WHEREAS, the Borrower is a member of an affiliated group of companies
that includes each other Grantor;

         WHEREAS, the proceeds of the extension of credit under the Credit
Agreement will be used in part to enable the Borrower to make valuable transfers
to one or more of the other Grantors in connection with the operation of their
respective businesses;

         WHEREAS, the Borrower and the other Grantors are engaged in related
businesses, and each Grantor will derive substantial direct and indirect benefit
from the making of extensions of credit under the Credit Agreement; and

         WHEREAS, it is a condition precedent to the obligations of the Lenders
to make their respective extensions of credit to the Borrower under the Credit
Agreement that the Grantors shall have executed and delivered this Agreement to
the Administrative Agent.

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         Section 1. DEFINITIONS.

                  1.01. DEFINITION OF TERMS USED HEREIN GENERALLY. Except as
otherwise provided herein, all capitalized terms used but not defined herein
shall have the meanings set forth in the Credit Agreement. Except as
specifically provided herein, all terms used herein and defined in the NYUCC
shall have the same definitions herein as specified therein as of the date
hereof; PROVIDED, HOWEVER, that if a term is defined in Article 9 of the NYUCC
differently than in another Article of the NYUCC, the term has the meaning
specified in Article 9 of the NYUCC as of the date hereof.

                  1.02. DEFINITION OF CERTAIN TERMS USED HEREIN. As used herein,
the following terms shall have the following meanings:

         "AFTER-ACQUIRED INTELLECTUAL PROPERTY": as defined in Section 7.13.

<PAGE>

         "AGREEMENT": this Guarantee and Collateral Agreement, as the same may
be amended, supplemented, replaced or otherwise modified from time to time.

         "ARRANGER": Lehman Brothers Inc., in its capacity as sole lead arranger
and book running manager.

         "BORROWER OBLIGATIONS": the collective reference to the Obligations (as
defined in the Credit Agreement).

         "COLLATERAL": as defined in Section 3.

         "COPYRIGHT LICENSE": any written agreement, now or hereafter in effect,
granting any right to any third party under any Copyright now or hereafter owned
by any Grantor or that the Grantor otherwise has the right to license, or
granting any right to any Grantor under any Copyright now or hereafter owned by
any third party, and all rights of any Grantor under any such agreement.

         "COPYRIGHT OFFICE": the United States Copyright Office.

         "COPYRIGHTS": (i) all copyrights, whether or not the underlying works
of authorship have been published, and all works of authorship and other
intellectual property rights therein, all copyrights of works based on,
incorporated in, derived from or relating to works covered by such copyrights,
all right, title and interest to make and exploit all derivative works based on
or adopted from works covered by such copyrights, and all copyright
registrations and copyright applications, and any renewals or extensions
thereof, including, without limitation, each registration and application
identified in SCHEDULE 7(b) to the Perfection Certificate, (ii) the rights to
print, publish and distribute any of the foregoing, (iii) the right to sue or
otherwise recover for any and all past, present and future infringements and
misappropriations thereof, (iv) all income, royalties, damages and other
payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all Copyright Licenses entered into in
connection therewith, and damages and payments for past, present or future
infringements thereof), and (v) all other rights of any kind whatsoever accruing
thereunder or pertaining thereto.

         "COPYRIGHT SECURITY AGREEMENT SUPPLEMENT": a supplement to this
Agreement, executed by one or more Grantors in favor of the Secured Party,
substantially in the form of EXHIBIT B hereto.

         "EVENT": as defined in SECTION 9.03 HEREOF.

         "EXCLUDED ASSETS": collectively, (a) FCC Licenses, but only if and to
the extent that, and only for as long as, the grant of a security interest
therein is prohibited (notwithstanding the intention of the holder to grant such
security interest to the fullest extent lawful) under the laws of the United
States of America; provided, that notwithstanding the foregoing, all Proceeds of
a Disposition by a Grantor of an FCC License shall not constitute an Excluded
Asset, (b) any General Intangible to the extent that (i) the terms of the
agreement between the applicable Grantor and the account debtor or other
contract party with respect to such General Intangible prohibits, restricts or
requires the consent of the account debtor to, the assignment or transfer of, or
creation, attachment or perfection of a security interest in, such General

                                      -2-
<PAGE>

Intangible, or provides that the assignment or transfer or creation, attachment
or perfection of such security interest may give rise to a default, breach,
right of recoupment, claim, defense, termination, right of termination or remedy
and (ii) such terms are effective under Sections 9-406, 9-407 or 9-408 of the
NYUCC and (c) any property that is subject to a Lien permitted under Section
7.3(g) of the Credit Agreement pursuant to documents that prohibit the
applicable Grantor from granting other liens in such property.

         "EXCLUDED FOREIGN SUBSIDIARY VOTING STOCK": the voting Capital Stock of
any Excluded Foreign Subsidiary.

         "FCC LICENSES": any licenses, permits and authorizations issued by the
Federal Communications Commission for the operation of stations.

         "FOREIGN SUBSIDIARY": any Subsidiary organized under the laws of any
jurisdiction other than any state of the United States of America or the
District of Columbia.

         "FULLY SATISFIED" means, with respect to the Secured Obligations,
Guarantor Obligations or Borrower Obligations, as the case may be, at any time
that (a) all principal constituting Secured Obligations, Guarantor Obligations
or Borrower Obligations, as the case may be, and all interest (including
interest that shall have accrued after the commencement of a bankruptcy
proceeding with respect to the Borrower or any Guarantor at the rate provided in
the Loan Documents) accrued to such time on such principal and on all other
Secured Obligations, Guarantor Obligations or Borrower Obligations, as the case
may be, shall have been paid in full in cash, (b) all fees, expenses and other
amounts (including contingent obligations, including those in respect of
indemnification provisions contained in the Loan Documents, but excluding
obligations in respect of such indemnification provisions for which no claim has
been made and for which no notice of claim has been given) unpaid as of such
time which constitute Secured Obligations, Guarantor Obligations or Borrower
Obligations, as the case may be, shall have been paid in full in cash, (c) each
outstanding Letter of Credit shall have been (i) terminated, (ii) collateralized
with cash as contemplated by the definition of "Termination Date" in the Credit
Agreement or (iii) backed by a Qualified Supporting Letter of Credit delivered
to the applicable Issuing Lender, and (c) the Commitments shall have expired or
been terminated.

         "GENERAL INTANGIBLES": all "general intangibles" as such term is
defined in Section 9-102(42) of the NYUCC as in effect on the date hereof and,
in any event, including, without limitation, with respect to any Grantor, all
contracts, agreements, instruments and indentures and all licenses and permits
issued by Governmental Authorities in any form, and portions thereof, to which
such Grantor is a party or under which such Grantor has any right, title or
interest or to which such Grantor or any property of such Grantor is subject, as
the same may from time to time be amended, supplemented, replaced or otherwise
modified, including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guaranty with respect thereto, (iii) all rights of such
Grantor to damages arising thereunder, (iv) all rights of such Grantor to
receive any tax refunds, and (v) all rights of such Grantor to terminate and to
perform, compel performance and to exercise all remedies thereunder.

         "GUARANTOR OBLIGATIONS": with respect to any Guarantor, all obligations
and liabilities of such Guarantor which may arise under or in connection with
this Agreement (including, without limitation, Section 2) or any other Loan
Document to which such Guarantor is a party, in each case whether on account of
guarantee obligations, reimbursement obligations, fees, indemnities, costs,

                                      -3-
<PAGE>

expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to any Secured Party that are required to be paid by such Guarantor
pursuant to the terms of this Agreement or any other Loan Document).

         "GUARANTORS": the collective reference to each Grantor other than the
Borrower.

         "HEDGE AGREEMENTS": as to any Person, all interest rate swaps, caps or
collar agreements or similar arrangements entered into by such Person providing
for protection against fluctuations in interest rates or currency exchange rates
or the exchange of nominal interest obligations, either generally or under
specific contingencies.

         "INTELLECTUAL PROPERTY": all intellectual and similar property of any
Grantor of every kind and nature now owned or hereafter acquired by any Grantor,
including inventions, designs, Patents, Patent Licenses, Trademarks, Trademark
Licenses, Copyrights, Copyright Licenses, Trade Secrets, Trade Secret Licenses,
confidential or proprietary technical and business information, know-how,
show-how or other data or information, software and databases and all
embodiments or fixations thereof and related documentation, registrations and
franchises, licenses for any of the foregoing and all license rights, and all
additions, improvements and accessions to, and books and records describing or
used in connection with, any of the foregoing.

         "INTELLECTUAL PROPERTY SECURITY AGREEMENT": each of a Copyright
Security Agreement Supplement, a Patent Security Agreement Supplement and a
Trademark Security Agreement Supplement.

         "INTERCOMPANY DEBT": as defined in Section 19.17.

         "INTERCOMPANY NOTE": any promissory note evidencing loans made by any
Grantor to any of its Subsidiaries or any loan made by any Grantor to another
Grantor.

         "INVESTMENT PROPERTY": the collective reference to (i) all "investment
property" as such term is defined in Section 9-102(48) of the NYUCC on the date
hereof including, without limitation, all certificated securities and
uncertificated securities, all security entitlements, all securities accounts,
all commodity contracts and all commodity accounts (other than any Excluded
Foreign Subsidiary Voting Stock excluded from the definition of "Pledged
Stock"), (ii) security entitlements, in the case of any United States Treasury
book-entry securities, as defined in 31 C.F.R. section 357.2, or, in the case of
any United States federal agency book-entry securities, as defined in the
corresponding United States federal regulations governing such book-entry
securities, and (iii) whether or not constituting "investment property" as so
defined, all Pledged Notes, all Pledged Stock, all Pledged Security Entitlements
and all Pledged Commodity Contracts.

         "ISSUERS": the collective reference to each issuer of a Pledged
Security.

         "LEASE": any lease of personal property under which any Grantor is the
lessee.

         "LIEN": any security interest, mortgage, lien, encumbrance or adverse
claim, and any financing statement or similar document filed in respect of same.

         "NYUCC": the Uniform Commercial Code as in effect in the State of New
York from time to time.

                                      -4-
<PAGE>

         "PATENT LICENSE": any written agreement, now or hereafter in effect,
granting to any third party any right to make, use or sell any invention on
which a Patent, now or hereafter owned by any Grantor or that any Grantor
otherwise has the right to license, is in existence, or granting to any Grantor
any right to make, use or sell any invention on which a Patent, now or hereafter
owned by any third party, is in existence, and all rights of any Grantor under
any such agreement.

         "PATENTS": all of the following now owned or hereafter acquired by any
Grantor: (a) all letters patent of the United States or any other country, all
registrations and recordings thereof, and all pending applications for letters
patent of the United States or any other country, including registrations,
recordings and applications in the PTO or in any similar office or agency of the
United States, any State or Territory thereof, or any other country, including
those identified in SCHEDULE 7(a) to the Perfection Certificate, and (b) all
reissues, continuations, divisions, continuations-in-part, renewals or
extensions thereof and the inventions disclosed or claimed therein, including
the right to make, use and/or sell inventions disclosed or claimed therein.

         "PATENT SECURITY AGREEMENT SUPPLEMENT": a supplement to this Agreement,
executed by one or more Grantors in favor of Secured Party, substantially in the
form of EXHIBIT C hereto.

         "PERFECTION CERTIFICATE": shall mean a certificate substantially in the
form of EXHIBIT A hereto, completed and supplemented with the schedules and
attachments contemplated thereby, and duly executed by the Grantors.

         "PERFECTION SUPPLEMENT": shall have the meaning assigned to such term
in Section 7.19.

         "PLEDGED COMMODITY CONTRACTS": all commodity contracts listed on
SCHEDULE 8 in the Perfection Certificate, and all other commodity contracts to
which any Grantor is party from time to time.

         "PLEDGED DEBT SECURITIES": the debt securities listed on SCHEDULE 9 to
the Perfection Certificate, together with any other certificates, options,
rights or security entitlements of any nature whatsoever in respect of the debt
securities of any Person that may be issued or granted to, or held by, any
Grantor while this Agreement is in effect.

         "PLEDGED NOTES": all promissory notes listed on SCHEDULE 9 to the
Perfection Certificate, all Intercompany Notes at any time issued to any Grantor
and all other promissory notes issued to or held by any Grantor (other than
promissory notes in an aggregate principal amount for all Grantors not to exceed
$250,000 at any time outstanding issued in connection with extensions of trade
credit by any Grantor in the ordinary course of business).

         "PLEDGED SECURITIES": the collective reference to the Pledged Debt
Securities, the Pledged Notes and the Pledged Stock.

         "PLEDGED SECURITY ENTITLEMENTS": all security entitlements with respect
to the financial assets listed on SCHEDULE 8 to the Perfection Certificate and
all other security entitlements of any Grantor.

         "PLEDGED STOCK": the shares of Capital Stock listed on SCHEDULE 8 to
the Perfection Certificate, together with any other shares, stock certificates,
options, rights or security entitlements of any nature whatsoever in respect of
the Capital Stock of any Person that may be issued or granted to, or held by,
any Grantor while this Agreement is in effect; provided that in no event shall

                                      -5-
<PAGE>

more than 65% of the total outstanding Excluded Foreign Subsidiary Voting Stock
of any Excluded Foreign Subsidiary be required to be pledged hereunder.

         "PROCEEDS": all "proceeds" as such term is defined in Section 9-102(64)
of the NYUCC in effect on the date hereof and, in any event, shall include,
without limitation, all dividends or other income from the Pledged Securities,
collections thereon or distributions or payments with respect thereto.

         "PTO": the United States Patent and Trademark Office.

         "RECEIVABLE": any right to payment on account of any obligation that
could create any right to receive money, whether or not such right is evidenced
by an instrument or chattel paper and whether or not it has been earned by
performance (including, without limitation, any account or payment intangible).

         "SBS PUERTO RICO": Spanish Broadcasting System of Puerto Rico, Inc., a
Puerto Rican corporation.

         "SECURED OBLIGATIONS": the Borrower Obligations and the Guarantor
Obligations.

         "SECURED PARTIES": collectively, the Arranger, the Agents, the Lenders
and, with respect to any Specified Hedge Agreement, any Person that at the time
of entering into such Specified Hedge Agreement was a Lender or an affiliate of
such Lender, is a party thereto and has agreed to be bound by the provisions of
Sections 9.02 and 9.03 as if it were a party hereto and by the provisions of
Section 9 of the Credit Agreement as if it were a Lender party thereto and each
Indemnitee.

         "SECURITIES ACT": the Securities Act of 1933, as amended.

         "SECURITY DOCUMENTS": this Agreement, the Perfection Certificate and
the other documents, agreements and supplements to be executed pursuant to the
terms hereof, including, without limitation, the Intellectual Property Security
Agreements and the "control" agreements contemplated hereby.

         "SECURITY INTEREST": the security interest granted pursuant to Section
3, as well as all other security interests created or assigned as additional
security for the Secured Obligations pursuant to the provisions of this
Agreement.

         "TRADE SECRET LICENSE": any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trade
Secret, including, without limitation, any of the foregoing referred to on
SCHEDULE 7(a) to the Perfection Certificate.

         "TRADE SECRETS": (i) all trade secrets and all confidential and
proprietary information, including know-how, trade secrets, manufacturing and
production processes and techniques, inventions, research and development
information, technical data, financial, marketing and business data, pricing and
cost information, business and marketing plans, and customer and supplier lists
and information, including, without limitation, those identified in SCHEDULE
7(a) to the Perfection Certificate, (ii) the right to sue or otherwise recover
for any and all past, present and future infringements and misappropriations
thereof, (iii) all income, royalties, damages and other payments now and

                                      -6-
<PAGE>

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, present or future infringements thereof), and
(iv) all other rights of any kind whatsoever of such Grantor accruing thereunder
or pertaining thereto.

         "TRADEMARK LICENSE": any written agreement, now or hereafter in effect,
granting to any third party any right to use any Trademark now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, or
granting to any Grantor any right to use any Trademark now or hereafter owned by
any third party, and all rights of any Grantor under any such agreement.

         "TRADEMARK SECURITY AGREEMENT SUPPLEMENT": a supplement to this
Agreement, executed by the Grantor in favor of Secured Party, substantially in
the form of EXHIBIT D hereto.

         "TRADEMARKS": (i) all trademarks, service marks, trade names, corporate
names, company names, business names, domain names, trade dress, trade styles,
logos, or other indicia of origin or source identification, trademark and
service mark registrations, and applications for trademark or service mark
registrations and any renewals thereof, including, without limitation, those
identified in SCHEDULE 7(a) to the Perfection Certificate, (ii) the right to sue
or otherwise recover for any and all past, present and future infringements and
misappropriations thereof, (iii) all income, royalties, damages and other
payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all Trademark Licenses entered into in
connection therewith, and damages and payments for past, present or future
infringements thereof), and (iv) all other rights of any kind whatsoever
accruing thereunder or pertaining thereto, together in each case with the
goodwill of the business connected with the use of, and symbolized by, each of
the above.

         "UCC": the Uniform Commercial Code as in effect in any jurisdiction
(except as otherwise contemplated in Section 7.20). References to particular
sections of Article 9 of the UCC shall be, unless otherwise indicated,
references to Revised Article 9 of the UCC adopted and effective in certain
jurisdictions on or after July 1, 2001.

                  1.03. RULES OF INTERPRETATION. The rules of interpretation
specified in paragraphs (c), (d), (e) and (f) of Section 1.2 of the Credit
Agreement shall be applicable to this Agreement. References to "Sections",
"Exhibits" and "Schedules" shall be to Sections, Exhibits and Schedules,
respectively, of this Agreement unless otherwise specifically provided. Any of
the terms defined in this Section 1 may, unless the context otherwise requires,
be used in the singular or the plural depending on the reference. All references
to statutes and related regulations shall include (unless otherwise specifically
provided herein) any amendments of same and any successor statutes and
regulations.

         Section 2. GUARANTEE

                  2.01. GUARANTEE. (a) Each of the Guarantors hereby, jointly
and severally, unconditionally and irrevocably, guarantees to the Administrative
Agent, for the ratable benefit of the Secured Parties and their respective
successors, indorsees, transferees and assigns, the prompt and complete payment
and performance by the Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

                           (b) Anything herein or in any other Loan Document to
the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Loan Documents shall in no event exceed the amount which can

                                      -7-
<PAGE>

be guaranteed by such Guarantor under applicable federal, state and other laws
relating to the insolvency of debtors (after giving effect to the right of
contribution established in Section 2.02).

                           (c) Each Guarantor agrees that the Borrower
Obligations may at any time and from time to time exceed the amount of the
liability of such Guarantor hereunder without impairing the guarantee contained
in this Section 2 or affecting the rights and remedies of any Secured Party
hereunder.

                           (d) The guarantee contained in this Section 2 shall
remain in full force and effect until all the Borrower Obligations and Guarantor
Obligations shall have been Fully Satisfied notwithstanding that from time to
time during the term of the Credit Agreement the Borrower may be free from any
Borrower Obligations.

                           (e) No payment made by the Borrower, any of the
Guarantors, any other guarantor or any other Person or received or collected by
any Secured Party from the Borrower, any of the Guarantors, any other guarantor
or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or
in payment of the Borrower Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of any Guarantor hereunder which
shall, notwithstanding any such payment (other than any payment made by such
Guarantor in respect of the Borrower Obligations or any payment received or
collected from such Guarantor in respect of the Borrower Obligations), remain
liable for the Borrower Obligations up to the maximum liability of such
Guarantor hereunder until the Borrower Obligations are Fully Satisfied.

                  2.02. RIGHT OF CONTRIBUTION. Each Guarantor hereby agrees that
to the extent that a Guarantor shall have paid more than its proportionate share
of any payment made hereunder, such Guarantor shall be entitled to seek and
receive contribution from and against any other Guarantor hereunder which has
not paid at least its proportionate share of such payment. Each Guarantor's
right of contribution shall be subject to the terms and conditions of Section
2.03. The provisions of this Section 2.02 shall in no respect limit the
obligations and liabilities of any Guarantor to the Secured Parties and each
Guarantor shall remain liable to the Secured Parties for the full amount
guaranteed by such Guarantor hereunder.

                  2.03. SUBROGATION. Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
any Secured Party, no Guarantor shall be entitled to be subrogated to any of the
rights of any Secured Party against the Borrower or any other Guarantor or
Grantor or any collateral security or guarantee or right of offset held by any
Secured Party for the payment of the Borrower Obligations, nor shall any
Guarantor seek or be entitled to seek any contribution or reimbursement from the
Borrower or any other Guarantor or Grantor in respect of payments made by such
Guarantor hereunder, until all Borrower Obligations are Fully Satisfied.. If any
amount shall be paid to any Guarantor on account of such subrogation rights at
any time when all of the Borrower Obligations shall not have been Fully
Satisfied, such amount shall be held by such Guarantor in trust for the Secured
Parties, segregated from other funds of such Guarantor, and shall, forthwith
upon receipt by such Guarantor, be turned over to the Administrative Agent in
the exact form received by such Guarantor (duly endorsed by such Guarantor to
the Administrative Agent, if required), to be applied against the Borrower
Obligations, whether matured or unmatured, in such order as the Administrative
Agent may determine.

                                      -8-
<PAGE>

                  2.04. AMENDMENTS, ETC. WITH RESPECT TO THE BORROWER
OBLIGATIONS. Each Guarantor shall remain obligated hereunder notwithstanding
that, without any reservation of rights against any Guarantor and without notice
to or further assent by any Guarantor, any demand for payment of any of the
Borrower Obligations made by any Secured Party may be rescinded by such Secured
Party and any of the Borrower Obligations continued, and the Borrower
Obligations, or the liability of any other Person upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with respect
thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
any Secured Party, and the Credit Agreement and the other Loan Documents and any
other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent (or the Requisite Lenders under the Credit Agreement or all Lenders, as
the case may be) may deem advisable from time to time, and any collateral
security, guarantee or right of offset at any time held by any Secured Party for
the payment of the Borrower Obligations may be sold, exchanged, waived,
surrendered or released. No Secured Party shall have any obligation to protect,
secure, perfect or insure any Lien at any time held by it as security for the
Borrower Obligations or for the guarantee contained in this Section 2 or any
property subject thereto.

                  2.05. GUARANTEE ABSOLUTE AND UNCONDITIONAL. Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Borrower Obligations and notice of or proof of reliance by any Secured
Party upon the guarantee contained in this Section 2 or acceptance of the
guarantee contained in this Section 2; the Borrower Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred,
or renewed, extended, amended or waived, in reliance upon the guarantee
contained in this Section 2; and all dealings between the Borrower and any of
the Guarantors, on the one hand, and the Secured Parties, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in this Section 2. Each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Borrower or any of the Guarantors with respect to the
Borrower Obligations. Each Guarantor understands and agrees that the guarantee
contained in this Section 2 shall be construed as a continuing, absolute and
unconditional guarantee of payment and performance without regard to (a) the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Borrower Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by any Secured Party, (b) any defense, set-off or counterclaim (other
than a defense of payment or performance hereunder) which may at any time be
available to or be asserted by the Borrower or any other Person against any
Secured Party, or (c) any other circumstance whatsoever (with or without notice
to or knowledge of the Borrower or such Guarantor) which constitutes, or might
be construed to constitute, an equitable or legal discharge of the Borrower for
the Borrower Obligations, or of such Guarantor under the guarantee contained in
this Section 2, in bankruptcy or in any other instance. When making any demand
hereunder or otherwise pursuing its rights and remedies hereunder against any
Guarantor, any Secured Party may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as it may have
against the Borrower, any other Guarantor or any other Person or against any
collateral security or guarantee for the Borrower Obligations or any right of
offset with respect thereto, and any failure by any Secured Party to make any
such demand, to pursue such other rights or remedies or to collect any payments
from the Borrower, any other Guarantor or any other Person or to realize upon
any such collateral security or guarantee or to exercise any such right of
offset, or any release of the Borrower, any other Guarantor or any other Person

                                      -9-
<PAGE>

or any such collateral security, guarantee or right of offset, shall not relieve
any Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of any Secured Party against any Guarantor. For the purposes
hereof, "demand" shall include the commencement and continuance of any legal
proceedings.

                  2.06. REINSTATEMENT. The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by any Secured Party upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrower or any Guarantor or any substantial part of its property, or otherwise,
all as though such payments had not been made.

                  2.07. PAYMENTS. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars in immediately available funds at the office of the
Administrative Agent located at the Payment Office specified in the Credit
Agreement and that all such payments will be subject to the provisions of
Section 2.20 of the Credit Agreement.

        Section 3. GRANT OF SECURITY INTEREST.

         Each Grantor hereby grants to the Administrative Agent, for the ratable
benefit of the Secured Parties, a security interest in and mortgage on, all of
the following property now owned or at any time hereafter acquired by such
Grantor or in which such Grantor now has or at any time in the future may
acquire any right, title or interest (collectively, the "COLLATERAL"), as
collateral security for the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of the Secured
Obligations

                  a. all accounts, including health-care receivables;

                  b. all chattel paper, whether tangible or electronic;

                  c. all deposit accounts, all claims now or hereafter arising
therefrom, all funds now or hereafter therein and all amounts now or hereafter
credited thereto;

                  d. all goods;

                  e. all documents;

                  f. all equipment;

                  g. all fixtures;

                  h. all general intangibles, including all payment intangibles;

                  i. all instruments;

                  j. all Intellectual Property;

                  k. all inventory;

                  l. all Investment Property;

                                      -10-
<PAGE>

                  m. all Leases;

                  n. all letter-of-credit rights;

                  o. all money;

                  p. all supporting obligations;

                  q. all tort claims;

                  r. all other property not otherwise described above;

                  s. all bank accounts, all claims now or hereafter arising
therefrom, all funds now or hereafter held therein, all amounts now or hereafter
credited thereto and all certificates and instruments, if any, from time to time
representing or evidencing such bank accounts;

                  t. all books and records pertaining to the Collateral; and

                  u. to the extent not otherwise included, all Proceeds and
products of any and all of the foregoing and all collateral security and
guarantees given by any Person with respect to any of the foregoing.

         Notwithstanding the foregoing, none of the Excluded Assets shall, to
the extent and for so long as they are Excluded Assets, constitute Collateral.
If at any time, by reason of any change in law or the receipt of any required
consent or otherwise, (i) any FCC License that was an Excluded Asset ceases to
meet the conditions set forth in clause (a) of the definition of "Excluded
Assets" found in Section 1 of this Agreement or (ii) any General Intangible that
was an Excluded Asset ceases to meet the conditions set forth in the definition
of "Excluded Assets" found in Section 1 of this Agreement, then such FCC License
or general intangible, as the case may be, shall immediately and automatically
cease to be an Excluded Asset and the security interest herein granted shall
immediately and automatically attach thereto without necessity of any further
act or deed by any Grantor.

         Section 4. AUTHORIZATION TO FILE FINANCING STATEMENTS. Each Grantor
hereby irrevocably authorizes the Administrative Agent at any time and from time
to time to file in any jurisdiction in which the UCC has been adopted any
initial financing statements and amendments thereto that (a) indicate the
Collateral (i) as all assets of such Grantor or words of similar effect,
regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the NYUCC or such jurisdiction, or (ii) as
being of an equal or lesser scope or with greater detail, and (b) contain any
other information required by part 5 of Article 9 of the UCC for the sufficiency
or filing office acceptance of any initial financing statement or amendment,
including (i) whether such Grantor is an organization, the type of organization
and any organization identification number issued to such Grantor and, (ii) in
the case of a financing statement filed as a fixture filing or indicating
Collateral as timber to be cut or as-extracted collateral, a sufficient
description of real property to which such Collateral relates. Each Grantor
agrees to furnish any such information to the Administrative Agent promptly upon
request. Each Grantor also ratifies its authorization for the Administrative
Agent to have filed in any UCC jurisdiction any like initial financing
statements or amendments thereto if filed prior to the date hereof.

                                      -11-
<PAGE>

         Section 5. RELATION TO OTHER SECURITY DOCUMENTS.

                  5.01. REAL ESTATE DOCUMENTS. The provisions of this Agreement
supplement the provisions of any real estate mortgage or deed of trust granted
by any Grantor to the Administrative Agent and securing the payment or
performance of any of the Secured Obligations. Nothing contained in any such
real estate mortgage or deed of trust shall derogate from any of the rights or
remedies of the Administrative Agent or any Secured Party hereunder.

                  5.02. PATENT AND TRADEMARK SECURITY AGREEMENT SUPPLEMENTS.
Concurrently herewith certain of the Grantors are executing and delivering to
the Administrative Agent for recording in the PTO the Trademark Security
Agreement Supplement. There are no Patents owned by any Grantor as of the
Closing Date. After the Closing Date one or more Grantors may execute and
deliver to the Administrative Agent for recording in the PTO one or more Patent
Security Agreement Supplements or Trademark Security Agreement Supplements. The
provisions of any such Patent Security Agreement Supplement or the current or
any such future Trademark Security Agreement Supplement are supplemental to the
provisions of this Agreement. Nothing contained in any such Patent Security
Agreement Supplement or the current or any such future Trademark Security
Agreement Supplement shall derogate from any of the rights or remedies of the
Secured Party hereunder, nor shall anything contained in any such Patent
Security Agreement Supplement or the current or any such future Trademark
Security Agreement Supplement be deemed to prevent or extend the time of
attachment or perfection of any Security Interest in such Collateral created
hereby.

                  5.03. COPYRIGHT SECURITY AGREEMENT SUPPLEMENT. There are no
Copyrights owned by any Grantor as of the Closing Date. In the event that after
the Closing Date any Grantor executes and delivers to the Administrative Agent
for recording in the Copyright Office a Copyright Security Agreement Supplement,
the provisions of any such Copyright Security Agreement Supplement will be
supplemental to the provisions of this Agreement. Nothing contained in any such
Copyright Security Agreement Supplement shall derogate from any of the rights or
remedies of the Secured Party hereunder, nor shall anything contained in any
such Copyright Security Agreement Supplement be deemed to prevent or extend the
time of attachment or perfection of any Security Interest in such Collateral
created hereby.

        Section 6. REPRESENTATIONS AND WARRANTIES. To induce the Arranger, the
Administrative Agent, the Syndication Agent, the Co-Documentation Agents and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit to the Borrower thereunder, each Grantor
hereby represents and warrants to the Secured Parties that:

                  6.01. GRANTORS' LEGAL STATUS. (a) Such Grantor is an
organization as set forth in the Perfection Certificate; (b) if the Grantor is
an organization, such organization is of the type, and is organized in the
jurisdiction, set forth in the Perfection Certificate; and (c) the Perfection
Certificate sets forth such Grantor's organizational identification number or
states that such Grantor has none.

                  6.02. GRANTORS' LEGAL NAMES. Such Grantor's exact legal name
is that set forth on the Perfection Certificate and on the signature page
hereof.

                  6.03. GRANTORS' LOCATIONS. The Perfection Certificate sets
forth such Grantor's place of business or (if it has more than one place of
business) its chief executive office, as well as its mailing address if
different. Such Grantor's place of business or (if it has more than one place of

                                      -12-
<PAGE>

business) its chief executive office (if such Grantor is an organization) is
located in a jurisdiction that has adopted the UCC or whose laws generally
require that information concerning the existence of nonpossessory security
interests be made generally available in a filing, recording or registration
system as a condition or result of the security interest obtaining priority over
the rights of a lien creditor with respect to the collateral.

                  6.04. REPRESENTATIONS IN THE CREDIT AGREEMENT. In the case of
each Guarantor, the representations and warranties set forth in Section 4 of the
Credit Agreement as they relate to such Guarantor or to the Loan Documents to
which such Guarantor is a party, each of which is hereby incorporated herein by
reference, are true and correct in all material respects, and the Secured
Parties shall be entitled to rely on each of them as if they were fully set
forth herein, provided that each reference in each such representation and
warranty to the Borrower's knowledge shall, for the purposes of this Section
6.04, be deemed to be a reference to such Guarantor's knowledge.

                  6.05. TITLE TO COLLATERAL. The Collateral of such Grantor is
owned by such Grantor free and clear of any Lien, except for Liens expressly
permitted pursuant to the Credit Agreement. Such Grantor has not filed or
consented to the filing of (a) any financing statement or analogous document
under the UCC or any other applicable laws covering any of its Collateral, (b)
any assignment in which such Grantor assigns any Collateral or any security
agreement or similar instrument covering any Collateral with the PTO or the
Copyright Office or (c) any assignment in which such Grantor assigns any
Collateral or any security agreement or similar instrument covering any
Collateral with any foreign governmental, municipal or other office, which
financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each case, with respect to
Liens expressly permitted pursuant to the Credit Agreement.

                  6.06. NATURE OF COLLATERAL. None of the Collateral of such
Grantor constitutes, or is the proceeds of, farm products and none of the
Collateral has been purchased or will be used by such Grantor primarily for
personal, family or household purposes, and as of the Closing Date, except as
indicated in the Perfection Certificate and as of any date of any Perfection
Supplement, except as indicated in such Perfection Supplement or in the
Perfection Certificate:

                           (a) none of the account debtors or other persons
obligated on any of the Collateral of such Grantor is a governmental authority
subject to the Federal Assignment of Claims Act or like federal, state or local
statute or rule in respect of such Collateral;

                           (b) such Grantor holds no commercial tort claims;

                           (c) such Grantor has no deposit accounts or other
bank accounts;

                           (d) such Grantor owns no motor vehicles;

                           (e) such Grantor has no securities accounts or
securities entitlements or commodities accounts or commodities contracts;

                           (f) such Grantor holds no interest in, title to or
power to transfer, any Patents, Patent Licenses, Trademarks, Trademark Licenses,
Trade Secrets, Trade Secret Licenses, Copyrights or Copyright Licenses; and

                                      -13-
<PAGE>

                           (g) such Grantor holds no interest in, title to or
power to transfer any Intellectual Property that is eligible for registration in
the PTO or the Copyright Office.

                  6.07. COMPLIANCE WITH LAWS. Such Grantor has at all times
operated its business in compliance with all Requirements of Law, except as
could not reasonably be expected to have a Material Adverse Effect..

                  6.08. VALIDITY OF SECURITY INTEREST. Except with respect to
assets which in the aggregate for all Grantors do not have a value exceeding
$200,000, (a) the Security Interest granted by such Grantor constitutes a legal
and valid security interest in all of the Collateral of such Grantor securing
the payment and performance of the Secured Obligations and (b) upon the giving
of value, the filing of financing statements describing the Collateral in the
offices listed on the Perfection Certificate, the recording in the PTO of the
Trademark Security Agreement Supplement and the Patent Security Agreement
Supplement and in the Copyright Office of the Copyright Security Agreement
Supplement, and the taking of all applicable actions in respect of perfection
contemplated by Sections 7.06, 7.07, 7.08, 7.09, 7.10, 7.11 and 7.12 in respect
of Collateral (in which a security interest cannot be perfected by the filing of
a financing statement or such recordings in the PTO or the Copyright Office),
the Security Interest will be valid, enforceable and perfected in all Collateral
of such Grantor in which a security interest can be perfected by the Secured
Party filing a financing statement, taking possession or obtaining control under
the UCC. The Security Interest is and shall be prior to any other Lien on the
Collateral, other than Liens expressly permitted to be prior to the Security
Interest under the Credit Agreement.

                  6.09. PERFECTION CERTIFICATE; INTELLECTUAL PROPERTY FILINGS.

                           (a) All information set forth on the Perfection
Certificate is, and all information set forth on each Perfection Supplement
shall be, accurate and complete.

                           (b) A fully executed Patent Security Agreement
Supplement, Trademark Security Agreement Supplement and a Copyright Security
Agreement Supplement containing a description of all Collateral of such Grantor
consisting of United States Patents and United States registered Trademarks (and
Trademarks for which United States registration applications are pending) and
United States registered Copyrights have been delivered to the Secured Party for
recording by the PTO and the Copyright Office, as necessary, pursuant to 35
U.S.C. ss. 261, 15 U.S.C. ss. 1060 or 17 U.S.C. ss. 205 and the regulations
thereunder, as applicable.

                6.10. INVESTMENT PROPERTY.

                           (a) The shares of Pledged Stock pledged by such
Grantor hereunder constitute all of the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Excluded Foreign Subsidiary Voting Stock, 65% of the outstanding
Excluded Foreign Subsidiary Voting Stock of each relevant Issuer.

                           (b) All the shares of the Pledged Stock pledged by
such Grantor have been duly and validly issued and are fully paid and
nonassessable.

                           (c) The terms of any uncertificated limited liability
company interests and partnership interests included in the Pledged Stock
expressly provide that they are securities governed by Article 8 of the Uniform
Commercial Code in effect from time to time in the "issuer's jurisdiction" of

                                      -14-
<PAGE>

each Issuer thereof (as such term is defined in the UCC in effect in such
jurisdiction).

                           (d) Such Grantor is the record and beneficial owner
of, and has good and marketable title to, the Pledged Securities pledged by it
hereunder, free of any and all Liens or options in favor of, or claims of, any
other Person, except the Security Interest created by this Agreement.

                  6.11. RECEIVABLES. No amount exceeding $250,000 and payable to
such Grantor under or in connection with any Receivable is evidenced by any
instrument or chattel paper which has not been delivered to the Administrative
Agent.

        Section 7. COVENANTS. Each Grantor covenants and agrees with the
Administrative Agent, in each case at such Grantor's own cost and expense, as
follows.

                  7.01. GRANTORS' LEGAL STATUS. Such Grantor shall not change
its type of organization, jurisdiction of organization or other legal structure
except, upon not less than ten (10) days' prior written notice to the
Administrative Agent.

                  7.02. GRANTORS' NAMES. Such Grantor shall not change its name,
except upon not less than ten (10) days' prior written notice to the
Administrative Agent.

                  7.03. GRANTORS' ORGANIZATIONAL NUMBERS. Without providing at
least thirty (30) days' prior written notice to the Administrative Agent, such
Grantor shall not change its organizational identification number if it has one.
If such Grantor does not have an organizational identification number and later
obtains one, such Grantor shall forthwith notify the Administrative Agent of
such organizational identification number.

                  7.04. LOCATIONS. Without providing at least thirty (30) days'
prior written notice to the Administrative Agent, such Grantor shall not (a)
change its place of business or (if it has more than one place of business) its
chief executive office and shall promptly notify the Administrative Agent of any
new location of Collateral owned by the Borrower or a Domestic Subsidiary
thereof that is not set forth on a Perfection Certificate or Perfection
Supplement.

                  7.05. COVENANTS IN CREDIT AGREEMENT. Each Guarantor shall
take, or shall refrain from taking, as the case may be, each action that is
necessary to be taken or not taken, as the case may be, so that no Default or
Event of Default is caused by the failure to take such action or to refrain from
taking such action by such Guarantor or any of its Subsidiaries.

                  7.06. PROMISSORY NOTES AND TANGIBLE CHATTEL PAPER. If such
Grantor, together with the other Grantors, shall at any time hold or acquire any
promissory notes or tangible chattel paper in an aggregate principal amount of
more than $250,000, such Grantor shall forthwith endorse, assign and deliver the
same to the Administrative Agent, accompanied by such instruments of transfer or
assignment duly executed in blank as the Administrative Agent may from time to
time specify to be held by the Administrative Agent as Collateral pursuant to
this Agreement.

                  7.07. DEPOSIT ACCOUNTS. For each deposit account that such
Grantor at any time opens or maintains, such Grantor shall, at the
Administrative Agent's request and option, either (a) cause the Depository bank

                                      -15-
<PAGE>

to enter into a written agreement or other authenticated record with the
Administrative Agent, in form and substance reasonably satisfactory to the
Administrative Agent, pursuant to which such Depository bank shall agree, among
other things, to comply at any time with instructions from the Administrative
Agent to such Depository bank directing the disposition of funds from time to
time credited to such deposit account, without further consent of the Grantor
such agreement to be substantially in the form of EXHIBIT E or such other form
as the Administrative Agent shall approve, or (b) arrange for the Administrative
Agent to become the customer of the Depository bank with respect to the deposit
account; PROVIDED, HOWEVER, that notwithstanding the foregoing, the requirements
of this Section 7.07 shall not apply to (i) any payroll account maintained by
any Grantor (and each Grantor agrees not to deposit in any payroll account
maintained by it any funds, except funds needed at the time of deposit (or
within three days thereafter) to meet payroll needs of such Grantor), (ii) any
deposit account maintained by any Grantor as of the Closing Date and listed on
Schedule 7.07(a) until the date sixty (60) days following the Closing Date,
(iii) any deposit account maintained by any Grantor as of the Closing Date and
listed on Schedule 7.07(b) until the date ninety (90) days following the Closing
Date or (iv) deposit account number 4072007856 maintained by the Borrower and
Juan Rodriguez DTD with Wachovia Bank, N.A.

                  7.08. INVESTMENT PROPERTY.

                           (a) If any of the Collateral shall be or become
evidenced or represented by an uncertificated security, such Grantor shall cause
the Issuer thereof either (i) to register the Administrative Agent as the
registered owner of such uncertificated security, upon original issue or
registration of transfer or (ii) to agree in writing with such Grantor and the
Administrative Agent that such Issuer will comply with instructions with respect
to such uncertificated security originated by the Administrative Agent without
further consent of such Grantor, such agreement to be in substantially the form
of EXHIBIT F or such other form as the Administrative Agent shall approve.

                           (b) If any of the Collateral shall be or become
evidenced or represented by a security entitlement, such Grantor shall cause the
securities intermediary with respect to such security entitlement either (i) to
identify in its records the Administrative Agent as having such security
entitlement against such securities intermediary or (ii) to agree in writing
with such Grantor and the Administrative Agent that such securities intermediary
will comply with entitlement orders originated by the Administrative Agent
without further consent of such Grantor, such agreement to be in substantially
the form of EXHIBIT G or such other form as the Administrative Agent shall
approve.

                           (c) If any of the Collateral shall be or become
evidenced or represented by a commodity contract, such Grantor shall cause the
commodity intermediary with respect to such commodity contract to agree in
writing with such Grantor and the Administrative Agent that such commodity
intermediary will apply any value distributed on account of such commodity
contract as directed by the Administrative Agent without further consent of such
Grantor, such agreement to be in substantially the form of EXHIBIT H or such
other form as the Administrative Agent shall approve.

                           (d) If any of the Collateral shall be or become
evidenced or represented by or held in a securities account or a commodity
account, such Grantor shall, in the case of a securities account, comply with
subsection (b) of this Section 7.08 with respect to all security entitlements
carried in such securities account and, in the case of a commodity account,

                                      -16-
<PAGE>

comply with subsection (c) of this Section 7.08 with respect to all commodity
contracts carried in such commodity account.

                           (e) If such Grantor shall receive any stock or other
ownership certificate (including, without limitation, any certificate
representing a stock dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital
Stock of any Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any shares of or other ownership interests in the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Secured Parties, hold the same in trust for the Secured
Parties and deliver the same forthwith to the Administrative Agent in the exact
form received, duly endorsed by such Grantor to the Administrative Agent, if
required, together with an undated stock power covering such certificate duly
executed in blank by such Grantor and with, if the Administrative Agent so
requests, signature guaranteed, to be held by the Administrative Agent, subject
to the terms hereof, as additional collateral security for the Secured
Obligations.

                           (f) Subject to Section 7.08(h) hereof, such Grantor
shall be entitled:

                                    (i) to exercise, as it shall think fit, but
in a manner not inconsistent with the terms hereof, the voting power with
respect to the Pledged Stock of such Grantor, and for that purpose the
Administrative Agent shall (if any Pledged Stock shall be registered in the name
of the Administrative Agent or its nominee) execute or cause to be executed from
time to time, at the expense of such Grantor, such proxies or other instruments
in favor of such Grantor or its nominee, in such form and for such purposes as
shall be reasonably required by such Grantor and shall be specified in a written
request therefor, to enable it to exercise such voting power with respect to the
Pledged Stock; and

                                    (ii) except as otherwise provided in
paragraphs (g) and (h) of this Section 7.08, to receive and retain for its own
account any and all payments made in respect of the Pledged Securities to the
extent such are permitted pursuant to the terms of the Credit Agreement.

                           (g) Any sums paid upon or in respect of the Pledged
Securities upon the liquidation or dissolution of any Issuer shall be paid over
to the Administrative Agent to be held by it hereunder as additional collateral
security for the Secured Obligations, and in case any distribution of capital
shall be made on or in respect of the Pledged Securities or any property shall
be distributed upon or with respect to the Pledged Securities pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to
the reorganization thereof, the property so distributed shall, unless otherwise
subject to a perfected security interest in favor of the Administrative Agent,
be delivered to the Administrative Agent to be held by it hereunder as
additional collateral security for the Secured Obligations. If any sums of money
or property so paid or distributed in respect of the Pledged Securities shall be
received by such Grantor, such Grantor shall, until such money or property is
paid or delivered to the Administrative Agent, hold such money or property in
trust for the Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Secured Obligations.

                           (h) Upon the occurrence and during the continuance of
any Event of Default and following a single written notice thereof from the
Administrative Agent to the Borrower referring to this Section 7.08(h), all
rights of such Grantor to exercise or refrain from exercising the voting and

                                      -17-
<PAGE>

other consensual rights that it would otherwise be entitled to exercise pursuant
to Section 7.08(f)(i) hereof and to receive the payments pursuant to Section
7.08(f)(ii) hereof shall cease, and thereupon the Administrative Agent shall be
entitled to exercise all voting power with respect to the Pledged Securities and
to receive and retain, as additional collateral hereunder, any and all such
payments any time declared or paid upon any of the Pledged Securities during
such an Event of Default and otherwise to act with respect to the Pledged
Securities as outright owner thereof.

                           (i) At any time and from time to time with respect to
Pledged Securities other than Pledged Stock of a Subsidiary of the Borrower and
at any time and from time to time during the continuance of an Event of Default
with respect to Pledged Stock of a Subsidiary of the Borrower, the
Administrative Agent may cause all or any of the Pledged Securities to be
transferred to or registered in its name or the name of its nominee or nominees.

                           (j) Without the prior written consent of the
Administrative Agent, such Grantor will not (i) sell, assign, transfer,
exchange, or otherwise dispose of, or grant any option with respect to, any of
the Investment Property or Proceeds thereof or any interest therein (except
pursuant to a transaction permitted by the Credit Agreement), (ii) create, incur
or permit to exist any Lien or option in favor of, or any claim of any Person
with respect to, any of the Investment Property or Proceeds thereof, or any
interest therein, except for the Security Interests created by this Agreement
and except for non-consensual Liens permitted by the Credit Agreement, or (iii)
enter into any agreement or undertaking expressly restricting the foreclosure of
the Administrative Agent's Security Interest in any of the Investment Property
or Proceeds thereof or any interest therein.

                           (k) In the case of each Grantor which is an Issuer,
such Issuer agrees that (i) it will be bound by the terms of this Agreement
relating to the Pledged Securities issued by it and will comply with such terms
insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 7.08(e) or Section 7.08(g) with respect to the Pledged
Securities issued by it and (iii) the terms of Section 13.04(c) shall apply to
it, mutatis mutandis, with respect to all actions that may be required of it
with respect to the Pledged Securities issued by it. Each Grantor which is an
Issuer consents to the grant of a Security Interest in Capital Stock of such
Issuer the exercise of rights by the Administrative Agent in respect of such
Capital Stock, including (to the extent permitted hereunder) the foreclosure
thereon and the Administrative Agent, its nominee or transferee becoming a
partner or member of any such Issuer that is a partnership or limited liability
company.

                  7.09. COLLATERAL IN THE POSSESSION OF A BAILEE. If any goods
with a value in excess of $50,000 are at any time in the possession of a bailee,
such Grantor shall promptly notify the Administrative Agent thereof and, if
requested by the Administrative Agent, shall promptly obtain an acknowledgement
from such bailee, in form and substance reasonably satisfactory to the
Administrative Agent, that such bailee holds such Collateral for the benefit of
the Secured Parties.

                  7.10. ELECTRONIC CHATTEL PAPER AND TRANSFERABLE RECORDS. If
such Grantor, together with the other Grantors, shall at any time hold or
acquire interests in any electronic chattel paper or any "transferable record,"
as that term is defined in Section 201 of the federal Electronic Signatures in
Global and National Commerce Act, or in Section 16 of the Uniform Electronic

                                      -18-
<PAGE>

Transactions Act as in effect in any relevant jurisdiction, in excess of
$250,000 in the aggregate, such Grantor shall promptly notify the Administrative
Agent thereof and, at the request of the Administrative Agent, shall take such
action as the Administrative Agent may reasonably request to vest in the
Administrative Agent control, under Section 9-105 of the UCC, of such electronic
chattel paper or control under Section 201 of the federal Electronic Signatures
in Global and National Commerce Act or, as the case may be, Section 16 of the
Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record. The Administrative Agent agrees with such Grantor that
the Administrative Agent shall arrange, pursuant to procedures reasonably
satisfactory to the Administrative Agent and so long as such procedures will not
result in the Administrative Agent's loss of control, for such Grantor to make
alterations to the electronic chattel paper or transferable record permitted
under Section 9-105 of the UCC or, as the case may be, Section 201 of the
federal Electronic Signatures in Global and National Commerce Act or Section 16
of the Uniform Electronic Transactions Act, unless an Event of Default has
occurred and is continuing or would occur after taking into account any action
by such Grantor with respect to such electronic chattel paper or transferable
record.

                  7.11. LETTER-OF-CREDIT RIGHTS. If such Grantor, together with
the other Grantors, shall at any time be beneficiaries under one or more letters
of credit, now or hereafter issued, having aggregate undrawn amounts of more
than $250,000, such Grantor shall promptly notify the Administrative Agent
thereof and, at the request and option of the Administrative Agent, such Grantor
shall either (a) arrange, for the issuer and any nominated person with respect
to such letter of credit to consent, pursuant to an agreement or other
authenticated record with and in the form of EXHIBIT I or in such other form and
in substance satisfactory to the Administrative Agent, to an assignment to the
Secured Party of the proceeds of any drawing under the letter of credit or (b)
arrange for the Administrative Agent to become the transferee beneficiary of the
letter of credit.

                  7.12. COMMERCIAL TORT CLAIMS. If such Grantor shall at any
time hold or acquire a commercial tort claim, such Grantor shall immediately
notify the Administrative Agent in a writing signed by such Grantor of the brief
details thereof and grant to the Secured Parties in such writing a security
interest therein and in the proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably satisfactory
to the Administrative Agent.

                  7.13. INTELLECTUAL PROPERTY.

                           (a) Except in any respect that would not materially
impair the right, power, authority and ability of the Grantors to use their
intellectual property as necessary or convenient for the profitable conduct of
their businesses and would not reasonably be expected to have a Material Adverse
Effect:

                                    (i) Such Grantor (either itself or through
licensees) will (A) continue to use each material Trademark on each and every
trademark class of goods applicable to its current line as reflected in its
current catalogs, brochures and price lists in order to maintain such Trademark
in full force free from any claim of abandonment for non-use, (B) maintain as in
the past the quality of products and services offered under such Trademark and
take all necessary steps to ensure that all licensed users of such Trademark
maintain as in the past such quality, (C) use such Trademark with the
appropriate notice of registration and all other notices and legends required by
applicable Requirements of Law, (D) not adopt or use any mark which is
confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent, for the ratable benefit of the Secured Parties, shall

                                      -19-
<PAGE>

obtain a perfected security interest in such mark pursuant to this Agreement and
the Intellectual Property Security Agreement, and (E) not (and not permit any
licensee or sublicensee thereof to) do any act or knowingly omit to do any act
whereby such Trademark may become invalidated or impaired in any way.

                                    (ii) Such Grantor (either itself or through
licensees) will not do any act, or omit to do any act, whereby any material
Patent may become forfeited, abandoned or dedicated to the public.

                                    (iii) Such Grantor (either itself or through
licensees) (A) will employ each material Copyright and (B) will not (and will
not permit any licensee or sublicensee thereof to) do any act or knowingly omit
to do any act whereby any material portion of the Copyrights may become
invalidated or otherwise impaired. Such Grantor will not (either itself or
through licensees) do any act whereby any material portion of the Copyrights may
fall into the public domain.

                                    (iv) Such Grantor (either itself or through
licensees) will not do any act that knowingly uses any material Intellectual
Property to infringe the intellectual property rights of any other Person.

                                    (v) Such Grantor (either itself or through
licensees) will use proper statutory notice in connection with the use of each
material Patent, Trademark and Copyright included in the Intellectual Property.

                                    (vi) Such Grantor will take all reasonable
and necessary steps, including, without limitation, in any proceeding before the
PTO, the Copyright Office or any similar office or agency in any other country
or any political subdivision thereof, to maintain and pursue each application
(and to obtain the relevant registration) and to maintain each registration of
material Intellectual Property, including, without limitation, the payment of
required fees and taxes, the filing of responses to office actions issued by the
PTO and the Copyright Office, the filing of applications for renewal or
extension, the filing of affidavits of use and affidavits of incontestability,
the filing of divisional, continuation, continuation-in-part, reissue, and
renewal applications or extensions, the payment of maintenance fees, and the
participation in interference, reexamination, opposition, cancellation,
infringement and misappropriation proceedings.

                                    (vii) Such Grantor (either itself or through
licensees) will not, without the prior written consent of the Administrative
Agent, discontinue use of or otherwise abandon any Intellectual Property or
abandon any right to file an application for letters patent, trademark, or
copyright, unless such Grantor shall have previously determined that such use or
the pursuit or maintenance of such Intellectual Property is no longer desirable
in the conduct of such Grantor's business and that the loss thereof could not
reasonably be expected to have a Material Adverse Effect and, in which case,
such Grantor shall give prompt notice of any such abandonment to the
Administrative Agent in accordance herewith.

                                    (viii) In the event that any material
Intellectual Property is infringed, misappropriated or diluted by a third party,
such Grantor shall (A) take such actions as such Grantor shall reasonably deem
appropriate under the circumstances to protect such Intellectual Property and
(B) if such Intellectual Property is of material economic value, promptly notify
the Administrative Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution.

                                      -20-
<PAGE>

                                    (ix) Such Grantor will do all things that
are necessary and proper within such Grantor's power and control to keep each
license of Intellectual Property held by such Grantor as licensee or licensor in
full force and effect except to the extent that (A) such Grantor has reasonably
determined that the failure to keep any such license in full force and effect
could not be reasonably expected to have a Material Adverse Effect or (B) any
such license would expire by its terms or is terminable at will by a Person
other than Grantor.

                                    (x) In the event that such Grantor shall
create any nonexclusive license in any Trademark, Copyright, Patent or other
Intellectual Property or General Intangible, in each case owned by or licensed
to such Grantor (whether pursuant to a local marketing agreement, time
broadcasting agreement or otherwise) and such license is (x) for a duration of
more than eighteen (18) months, (y) not terminable at the option of such Grantor
and (z) not by its terms expressly subject and subordinate to the Security
Interest, then, and in any such event, such license shall constitute a
Disposition of the licensed property. In the event such Grantor creates any
license in Trademark, Copyright, Patent, other Intellectual Property or General
Intangible owned by or licensed to such Grantor that does not meet the
requirements of the immediately preceding sentence, such license shall not
constitute a Disposition of such Trademark, Copyright, Patent, other
Intellectual Property or General Intangible.

                           (b) Such Grantor will notify the Administrative Agent
immediately if it knows, or has reason to know, that any registration relating
to any material Intellectual Property has been or could reasonably be expected
to be forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including, without limitation, the institution of,
or any such determination or development in, any proceeding in the PTO, the
Copyright Office or any court or tribunal in any country) regarding such
Grantor's ownership of, or the validity of, any material Intellectual Property
or such Grantor's right to register the same or to own and maintain the same.

                           (c) Whenever such Grantor, either by itself or
through any agent, employee, licensee or designee, shall file an application for
the registration of any Intellectual Property with the PTO, the Copyright Office
or any similar office or agency in any other country or any political
subdivision thereof, such Grantor shall report such filing to the Administrative
Agent within five Business Days after the last day of the fiscal quarter in
which such filing occurs. Upon request of the Administrative Agent, such Grantor
shall execute and deliver, and have recorded, any and all agreements,
instruments, documents, and papers as the Administrative Agent may request to
evidence the Secured Parties' Security Interest in any Copyright, Patent,
Trademark or other Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby.

                           (d) Such Grantor agrees that, should it obtain an
ownership interest in any item of Intellectual Property which is not now a part
of the Intellectual Property Collateral (the "AFTER-ACQUIRED INTELLECTUAL
PROPERTY"), (i) the provisions of Section 3 shall automatically apply thereto,
(ii) any such After-Acquired Intellectual Property, and in the case of
trademarks, the goodwill of the business connected therewith or symbolized
thereby, shall automatically become part of the Collateral, (iii) it shall give
prompt (and, in any event within 15 days after the date of such acquisition)
written notice thereof to the Administrative Agent in accordance herewith, and

                                      -21-
<PAGE>

(iv) it shall provide the Administrative Agent promptly (and, in any event
within 15 days after the date of such acquisition) with an amended Perfection
Certificate and amended schedules to the applicable Intellectual Property
Security Agreement reflecting the acquisition of such After-Acquired
Intellectual Property. Such Grantor authorizes the Administrative Agent to
modify this Agreement by amending the Perfection Certificate and to modify the
schedules to the applicable Intellectual Property Security Agreement if such
Grantor fails to provide the Administrative Agent with satisfactory amended
schedules hereto or thereto within the time period required hereunder (and will
cooperate with the Administrative Agent in effecting any such amendment) to
include any After-Acquired Intellectual Property which becomes part of the
Intellectual Property Collateral under this Section, and to record any such
modified agreement with the PTO, the Copyright Office, or any other applicable
Governmental Authority.

                           (e) Such Grantor assumes all responsibility and
liability arising from the use of the Intellectual Property and hereby
indemnifies and holds the Secured Parties harmless from and against any claim,
suit, loss, damage or expense (including reasonable attorneys' fees arising out
of any alleged defect in any product manufactured, promoted or sold by such
Grantor (or any affiliate or subsidiary thereof) in connection with such
Intellectual Property or out of the manufacture, promotion, labeling, sale or
advertisement of any such product by such Grantor (or any affiliate or
subsidiary thereof).

                           (f) Such Grantor agrees to execute one or more
applicable Intellectual Property Security Agreements with respect to its
Intellectual Property in order to record the Security Interest granted herein to
the Administrative Agent for the ratable benefit of the Secured Parties with the
PTO, the Copyright Office, and any other applicable Governmental Authority.

                  7.14. MAINTENANCE OF COLLATERAL; COMPLIANCE WITH LAWS. (a)
Such Grantor shall keep the Collateral provided by it in good order and repair
and shall not use the same in violation of any Requirement of Law to the extent
that such violation could reasonably be expected to have a Material Adverse
Effect.

                  7.15. DISPOSITIONS OF COLLATERAL. Such Grantor shall not sell
or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral
provided by it or any interest therein except for dispositions permitted by the
Credit Agreement. In the event that such Grantor shall create any lease of any
personal property owned by or leased to such Grantor (whether pursuant to a
local marketing agreement, time broadcasting agreement or otherwise) and such
lease is (x) for a duration of more than eighteen (18) months, (y) not
terminable at the option of such Grantor and (z) not by its terms expressly
subject and subordinate to the Security Interest, then, and in any such event,
such lease shall constitute a Disposition of the leased property. In the event
such Grantor creates any lease in any personal property owned by or leased to
such Grantor that does not meet the requirements of the immediately preceding
sentence, such lease shall not constitute a Disposition of such personal
property.

                  7.16. MAINTENANCE OF INSURANCE. Such Grantor, at its sole cost
and expense, shall maintain or cause to be maintained insurance covering
physical loss or damage to the Collateral provided by it in accordance with the
Credit Agreement.

                  7.17. PERIODIC CERTIFICATION. From time to time on demand
(which demand, absent an Event of Default, shall be no more frequent that once
every four months) from the Administrative Agent, but in no event less
frequently than annually, such Grantor shall deliver to the Administrative Agent
a supplemental perfection certificate (each, a "PERFECTION SUPPLEMENT") executed
by such Grantor setting forth the information required pursuant to the
Perfection Certificate or confirming that there has been no change in such
information since the date of such certificate or the date of the most recent
certificate delivered pursuant to this Section 7.17.

                                      -22-
<PAGE>

                  7.18. OTHER ACTIONS AS TO ANY AND ALL COLLATERAL. Such Grantor
further agrees to take any other action reasonably requested by the
Administrative Agent to insure the attachment, perfection and first priority of,
and the ability of the Administrative Agent to enforce, the Security Interest in
any and all of the Collateral provided by such Grantor including, without
limitation, (a) executing, delivering and, where appropriate, filing financing
statements and amendments relating thereto under the UCC, to the extent, if any,
that such Grantor's signature thereon is required therefor; (b) causing the
Administrative Agent's name to be noted as secured party on any certificate of
title for a titled good if such notation is a condition to attachment,
perfection or priority of, or ability of the Administrative Agent to enforce,
the Security Interest in such Collateral; (c) complying with any provision of
any statute, regulation or treaty of the United States of America as to any
Collateral if compliance with such provision is a condition to the attachment,
perfection or priority of, or the ability of the Administrative Agent to
enforce, the Security Interest in such Collateral; (d) obtaining governmental
and other third party consents and approvals, including without limitation any
consent of any licensor, lessor or other person obligated on such Collateral;
(e) obtaining waivers from mortgagees, bailees, landlords and any other person
who has possession of or any interest in any Collateral or any real property on
which any such Collateral may be located, in form and substance satisfactory to
the Secured Party; (f) providing to the Administrative Agent "control" over such
Collateral, to the extent that perfection can only be achieved under the UCC by
control or where obtaining perfection by control provides more protection to the
Secured Parties that perfection by filing a financing statement; and (g) taking
all actions required by the UCC or by other law, as applicable in any relevant
UCC jurisdiction, or by other law as applicable in any foreign jurisdiction;
PROVIDED, HOWEVER, that nothing contained in paragraphs (d) or (e) shall require
such Grantor to pay any consideration (other than any governmental application,
processing, filing or recording fees) in order to obtain any consent or waiver
referred to in such paragraphs.

         Section 8. INSPECTION AND VERIFICATION. The Administrative Agent and
such Persons as the Administrative Agent may designate shall have the right, at
each Grantor's own cost and expense, to inspect the Collateral of such Grantor,
all records related thereto (and to make extracts and copies from such records)
and the premises upon which any of the Collateral of such Grantor is located, to
discuss such Grantor's affairs with the officers of such Grantor.

         Section 9. COLLATERAL PROTECTION EXPENSES; PRESERVATION OF COLLATERAL.

                  9.01. EXPENSES INCURRED BY THE ADMINISTRATIVE AGENT. In its
discretion, the Administrative Agent may discharge taxes and other encumbrances
at any time levied or placed on any of the Collateral, make repairs thereto and
pay any necessary filing fees or, if the debtor fails to do so, insurance
premiums. Each Grantor agrees to reimburse the Administrative Agent on demand
for any and all expenditures so made, and all sums disbursed by the
Administrative Agent in connection with this Section 9.01, including reasonable
attorneys' fees, court costs, expenses and other charges relating thereto, shall
be payable, upon demand, by such Grantor to the Administrative Agent shall bear
interest at the per annum rate specified in Section 17 and shall constitute
additional Secured Obligations. The Administrative Agent shall have no
obligation to any Grantor to make any such expenditures, nor shall the making
thereof relieve any Grantor of any default.

                  9.02. ADMINISTRATIVE AGENT'S OBLIGATIONS AND DUTIES.

                           (a) Anything herein to the contrary notwithstanding,
each Grantor shall remain liable under each contract or agreement comprised in
the Collateral provided by it to be observed or performed by such Grantor

                                      -23-
<PAGE>

thereunder. Neither the Administrative Agent nor any other Secured Party shall
have any obligation or liability under any such contract or agreement by reason
of or arising out of this Agreement or the receipt by the Administrative Agent
or any other Secured Party of any payment relating to any of the Collateral, nor
shall the Administrative Agent or any other Secured Party be obligated in any
manner to perform any of the obligations of any Grantor under or pursuant to any
such contract or agreement, to make inquiry as to the nature or sufficiency of
any payment received by the Administrative Agent or any other Secured Party in
respect of the Collateral or as to the sufficiency of any performance by any
party under any such contract or agreement, to present or file any claim, to
take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to the Administrative Agent or any other
Secured Party or to which the Administrative Agent or any other Secured Party
may be entitled at any time or times.

                           (b) The Administrative Agent's sole duty with respect
to the custody, safe keeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the NYUCC or otherwise, shall be to deal with
such Collateral in the same manner as the Secured Party deals with similar
property for its own account.

                           (c) Neither the Administrative Agent, nor any other
Secured Party nor any of their respective officers, directors, partners,
employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates
shall be liable for failure to demand, collect or realize upon any of the
Collateral or for any delay in doing so or shall be under any obligation to sell
or otherwise dispose of any Collateral upon the request of any Grantor or any
other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof. The powers conferred on the Secured Parties
hereunder are solely to protect the Secured Parties' interests in the Collateral
and shall not impose any duty upon any Secured Party to exercise any such
powers. The Secured Parties shall be accountable only for amounts that they
actually receive as a result of the exercise of such powers, and neither they
nor any of their officers, directors, partners, employees, agents, attorneys and
other advisors, attorneys-in-fact or affiliates shall be responsible to any
Grantor for any act or failure to act hereunder, except to the extent that any
such act or failure to act is found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from their respective gross
negligence or willful misconduct.

                           (d) Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, voting right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Administrative Agent and the other Secured
Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation, or entitlement, to make any inquiry respecting such
authority.

                  9.03. DUTIES AS TO PLEDGED SECURITIES.

                           (a) With respect to any calls, conversions,
exchanges, redemptions, offers, tenders or similar matters relating to any such
Pledged Securities (herein called "EVENTS"), any duty in connection therewith
imposed on the Administrative Agent by applicable law shall be fully satisfied
if:

                                      -24-
<PAGE>

                                    (i) the Administrative Agent exercises
reasonable care to ascertain the occurrence and to give reasonable notice to the
applicable Grantor of any Events applicable to any Pledged Securities that are
registered and held in the name of Secured Party or its nominee;

                                    (ii) the Administrative Agent gives the
applicable Grantor reasonable notice of the occurrence of any Events of which
the Administrative Agent has received actual knowledge, which Events are
applicable to any securities that are in bearer form or are not registered and
held in the name of the Administrative Agent or its nominee (each Grantor
agreeing to give the Administrative Agent reasonable notice of the occurrence of
any Events of which such Grantor has knowledge, which Events are applicable to
any securities in the possession of the Administrative Agent); and

                                    (iii) the Administrative Agent endeavors to
take such action with respect to any of the Events as the applicable Grantor may
reasonably and specifically request in writing in sufficient time for such
action to be evaluated and taken or, if the Administrative Agent reasonably
believes that the action requested would adversely affect the value of the
Pledged Securities as collateral or the collection of the Secured Obligations,
or would otherwise prejudice the interests of any Secured Party, the
Administrative Agent gives reasonable notice to such Grantor that any such
requested action will not be taken and, if the Administrative Agent makes such
determination or if such Grantor fails to make such timely request, the
Administrative Agent takes such other action as it reasonably deems advisable in
the circumstances.

                           (b) Except as hereinabove specifically set forth,
neither the Administrative Agent nor any other Secured Party shall have any
further obligation to ascertain the occurrence of, or to notify any Grantor with
respect to, any Events and shall not be deemed to assume any such further
obligation as a result of the establishment by the Administrative Agent or any
other Secured Party of any internal procedures with respect to any securities in
its possession, nor shall the Administrative Agent or any other Secured Party be
deemed to assume any other responsibility for, or obligation or duty with
respect to, any Pledged Securities or its use of any nature or kind, or any
matter or proceedings arising out of or relating thereto, including, without
limitation, any obligation or duty to take any action to collect, preserve or
protect its or any Grantor's rights in the Pledged Securities or against any
prior parties thereto, but the same shall be at such Grantor's sole risk and
responsibility at all times.

                           (c) Nothing contained in this Section 9.03 shall be
deemed to create any obligation in respect of Events on the Administrative
Agent, the purpose of this Section 9.03 being solely to provide standards, in
the event that applicable law imposes any obligations on the Administrative
Agent as to Events.

                  9.04. USE OF COLLATERAL. With respect to any Collateral in the
possession of the Administrative Agent or any other Secured Party, or a bailee
or other third party holding on its behalf, the Administrative Agent or such
other Secured Party may use or operate such Collateral in any manner and to the
extent determined by the Administrative Agent or such Secured Party.

         Section 10. SECURITIES AND DEPOSITS. Without limitation of Section
7.08, but subject to Section 7.08(i), the Administrative Agent may at any time
at its option, transfer to itself or any nominee any securities constituting
Collateral, and, subject to Section 7.08(f)(ii), receive any income thereon and
hold such income as additional Collateral or apply it to the Secured

                                      -25-
<PAGE>

Obligations. Whether or not any Secured Obligations are due, the Administrative
Agent may after the occurrence and during the continuance of an Event of Default
demand, sue for, collect, or make any settlement or compromise which it deems
desirable with respect to the Collateral. Regardless of the adequacy of
Collateral or any other security for the Secured Obligations, any deposits or
other sums at any time credited by or due from the Administrative Agent or any
other Secured Party to any Grantor may at any time be applied to or set off
against any of the Secured Obligations whether or not due and owing.

         Section 11. NOTIFICATION TO ACCOUNT DEBTORS AND OTHER PERSONS OBLIGATED
ON COLLATERAL. If an Event of Default shall have occurred and be continuing,
each Grantor shall, at the request of the Administrative Agent, notify account
debtors and other persons obligated on any of the Collateral of such Grantor of
the Security Interest in any account, chattel paper, general intangible,
instrument or other Claims constituting Collateral that payment thereof is to be
made directly to the Administrative Agent or to any financial institution
designated by the Administrative Agent as the Administrative Agent's agent
therefor, and the Administrative Agent may itself, if an Event of Default shall
have occurred and be continuing, without notice to or demand upon any Grantor,
so notify account debtors and other persons obligated on Collateral. After the
making of such a request or the giving of any such notification, each Grantor
shall hold any proceeds of collection of accounts, chattel paper, general
intangibles, instruments and other Claims constituting Collateral received by
the Grantor as trustee for the Secured Parties without commingling the same with
other funds of the Grantor and shall turn the same over to the Administrative
Agent in the identical form received, together with any necessary endorsements
or assignments. The Administrative Agent may apply the proceeds of collection of
accounts, chattel paper, general intangibles, instruments and other Claims
constituting Collateral received by the Administrative Agent or any other
Secured Party to the Secured Obligations or hold such proceeds as additional
Collateral, at the option of the Administrative Agent. The provisions of Section
9-209 of the NYUCC shall not apply to any account, chattel paper or payment
intangible as to which notification of assignment has been sent to the account
debtor or other person obligation on the Collateral, whether under this Section
11, Section 12 or Section 13.

         Section 12. POWER OF ATTORNEY.

                  12.01. APPOINTMENT AND POWERS OF ADMINISTRATIVE AGENT. Each
Grantor hereby irrevocably constitutes and appoints the Administrative Agent and
any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own name,
for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Administrative Agent the power and right, on behalf of such Grantor, without
notice to or assent by such Grantor, to do any or all of the following:

                           (a) in the name of such Grantor or its own name, or
otherwise, take possession of and endorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under any
Receivable or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Administrative Agent for the purpose of collecting any and
all such moneys due under any Receivable or with respect to any other Collateral
whenever payable;

                                      -26-
<PAGE>

                           (b) in the case of any Intellectual Property, execute
and deliver, and have recorded, any and all agreements, instruments, documents
and papers as the Administrative Agent may request to evidence the Security
Interest in such Intellectual Property and the goodwill and general intangibles
of such Grantor relating thereto or represented thereby;

                           (c) pay or discharge taxes and Liens levied or placed
on or threatened against the Collateral, effect any repairs or provide any
insurance and pay all or any part of the premiums therefor and the costs
thereof;

                           (d) execute, in connection with any sale provided for
in Section 13, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Collateral;

                           (e) exercise all rights of such Grantor as owner of
the Pledged Securities or as party to any partnership, limited liability company
or similar agreement, including, without limitation, the right to sign any and
all amendments, instruments, certificates, proxies, and other writings and
exercise all voting and consent rights with respect to the Pledged Securities;

                           (f) (1) direct any party liable for any payment under
any of the Collateral to make payment of any and all moneys due or to become due
thereunder directly to the Administrative Agent or as the Administrative Agent
shall direct; (2) ask or demand for, collect, and receive payment of and receipt
for, any and all moneys, claims and other amounts due or to become due at any
time in respect of or arising out of any Collateral; (3) sign and endorse any
invoices, freight or express bills, bills of lading, storage or warehouse
receipts, drafts against debtors, assignments, verifications, notices and other
documents in connection with any of the Collateral; (4) commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any portion thereof and to enforce any
other right in respect of any Collateral; (5) defend any suit, action or
proceeding brought against such Grantor with respect to any Collateral; (6)
settle, compromise or adjust any such suit, action or proceeding and, in
connection therewith, give such discharges or releases as the Administrative
Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along
with the goodwill of the business to which any such Copyright, Patent or
Trademark pertains) throughout the world for such term or terms, on such
conditions, and in such manner, as the Administrative Agent shall in its sole
discretion determine; and (8) generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Administrative Agent were the absolute owner
thereof for all purposes, and do, at the Administrative Agent's option and such
Grantor's expense, at any time, or from time to time, all acts and things which
the Administrative Agent deems necessary to protect, preserve or realize upon
the Collateral and the Security Interest therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do; and

                           (g) to the extent that such Grantor's authorization
given in Section 4 is not sufficient, to file such financing statements or
similar documents under the laws of any jurisdiction with respect hereto, with
or without such Grantor's signature, or a photocopy of this Agreement in
substitution for a financing statement or such other document, as the
Administrative Agent may deem appropriate and to execute in such Grantor's name
such financing statements, other such documents and amendments thereto and
continuation statements which may require such Grantor's signature.

                                      -27-
<PAGE>

Anything in this Section 12.01 to the contrary notwithstanding, the
Administrative Agent agrees that it will not exercise any rights under the power
of attorney provided for in this Section 12.01 (other than under paragraph (g)
of this Section 12.01) unless an Event of Default shall have occurred and be
continuing and, in the case of paragraph (e) of this Section 12.01 until the
notice referred to in Section 7.08(h) has been given.

                  12.02. FAILURE OF GRANTOR TO PERFORM. If any Grantor fails to
perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may
following not less than five (5) days' prior written notice to the Borrower,
perform or comply, or otherwise cause performance or compliance, with such
agreement.

                  12.03. EXPENSES OF ATTORNEY-IN-FACT. The expenses of the
Administrative Agent incurred in connection with actions undertaken as provided
in this Section 12, together with interest thereon at a rate per annum equal to
the rate per annum at which interest would then be payable on past due Base Rate
Loans under the Credit Agreement, from the date of payment by the Administrative
Agent to the date reimbursed by the relevant Grantor, shall be payable by such
Grantor to the Administrative Agent on demand.

                  12.04. RATIFICATION BY GRANTOR. To the extent permitted by
law, each Grantor hereby ratifies all that said attorneys shall lawfully do or
cause to be done by virtue of this Section 12. This power of attorney is a power
coupled with an interest and is irrevocable.

                  12.05. NO DUTY ON SECURED PARTY. The powers conferred on the
Administrative Agent, its directors, officers and agents pursuant to this
Section 12 are solely to protect the Secured Parties' interests in the
Collateral and shall not impose any duty upon any of them to exercise any such
powers. Each Secured Party shall be accountable only for the amounts that it
actually receives as a result of the exercise of such powers, and neither it nor
any of its officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act, except for such Secured Party's own gross
negligence or willful misconduct.

         Section 13. REMEDIES.

                  13.01. DEFAULT. Grantors shall be in default under this
Agreement (a) whenever any Event of Default has occurred and is continuing (and
each of the Grantors shall thereupon be in default hereunder without regard to
whether or to what degree any Grantor individually may have caused, participated
in, or had any knowledge of the occurrence of such Event of Default) and (b) at
all times after the Loans have become due and payable (giving effect to any
grace period), whether at maturity, upon acceleration pursuant to the Credit
Agreement or otherwise.

                  13.02. REMEDIES UPON DEFAULT. At any time when any Grantor is
in default under this Agreement as set forth in Section 13.01, the
Administrative Agent may exercise and enforce, in any order, (i) each and all of
the rights and remedies available to a secured party upon default under the
NYUCC or any other applicable UCC or other applicable law, (ii) each and all of
the rights and remedies available to it under the Credit Agreement or any other
Loan Document and (iii) each and all of the following rights and remedies:

                           (a) Collection Rights. Without notice to any Grantor
or any other Loan Party, the Administrative Agent may notify any or all account
debtors and obligors on any accounts, instruments, general intangibles or other
Claims constituting Collateral of the Secured Parties' Security Interests

                                      -28-
<PAGE>

therein and may direct, demand and enforce payment thereof directly to the
Administrative Agent. The provisions of Section 9-209 of the NYUCC shall not
apply to any account, chattel paper or payment intangible as to which
notification of assignment has been sent to the account debtor.

                           (b) Taking Possession. The Administrative Agent may
(i) enter upon any and all premises owned or leased by any Grantor where
Collateral is located (or believed by the Administrative Agent to be located),
with or (to the fullest extent permitted by law) without judicial process and
without any obligation to pay rent, (ii) prior to the disposition of the
Collateral, store, process, repair or recondition the Collateral or otherwise
prepare the Collateral for disposition in any manner to the extent the
Administrative Agent deems appropriate, (iii) take possession of any Grantor's
premises or place custodians in exclusive control thereof, remain on such
premises and use the same and any Grantor's equipment for the purpose of
completing any work in process or otherwise preparing the Collateral for sale or
selling or otherwise transferring the Collateral, (iv) take possession of all
items of Collateral that are not then in its possession, either upon such
premises or by removal from such premises, and (v) require any Grantor or the
Person in possession thereof to deliver such Collateral to the Administrative
Agent at one or more locations designated by the Administrative Agent and
reasonably convenient to it and each Grantor owning an interest therein.

                           (c) Foreclosure. The Administrative Agent may sell,
lease, license or otherwise dispose of or transfer any or all of the Collateral
or any part thereof in one or more parcels at public sale or in private sale or
transaction, on any exchange or market or at the Administrative Agent's offices
or on any Grantor's premises or at any other location, for cash, on credit or
for future delivery, and may enter into all contracts necessary or appropriate
in connection therewith, without any notice whatsoever unless required by law.
Where permitted by law, one or more of the Secured Parties may be the purchasers
at any such sale and in such event, if such bid is made by all of the Lenders or
otherwise whenever a credit bid is expressly permitted under the Credit
Agreement or approved in writing by the Administrative Agent and the Required
Lenders, the Secured Parties bidding at such sale may bid part or all of the
Obligations owing to them without necessity of any cash payment on account of
the purchase price, even though any other purchaser at such sale is required to
bid a purchase price payable in cash. Each Grantor agrees that at least ten (10)
calendar days' written notice to such Grantor of the time and place of any
public sale of Collateral owned by it (or, to the extent such Grantor is
entitled by law to notice thereof, the public sale of any other Collateral), or
the time after which any private sale of Collateral owned by it (or, to the
extent such Grantor is entitled by law to notice thereof, the private sale of
any other Collateral) is to be made, shall be commercially reasonable. For
purposes of such notice, to the fullest extent permitted by law (i) each Grantor
waives notice of any sale of Collateral owned by any other Grantor and (ii) each
Grantor agrees that notice given to the Borrower shall constitute notice given
to such Grantor. The giving of notice of any such sale or other disposition
shall not obligate the Administrative Agent to proceed with the sale or
disposition, and any such sale or disposition may be postponed or adjourned from
time to time, without further notice.

                           (d) Voting Rights. Subject to Section 7.08(h), the
Administrative Agent may exercise any and all rights of any Grantor as the owner
of any Pledged Securities, including, without limitation, voting rights, rights
to give or withhold consent under any agreement under which any Pledged Security
is issued and all other rights referred to in Section 12.01(e).

                                      -29-
<PAGE>

                           (e) Use of Intellectual Property. The Administrative
Agent may, on a royalty-free basis, use and license use of any Trademark, Trade
Secret, trade name, trade style, Copyright, Patent, technical knowledge or
process or other Intellectual Property owned, held or used by any Grantor in
respect of any Collateral as to which any right or remedy of the Administrative
Agent is exercised or enforced. In addition, the Administrative Agent may
exercise and enforce such rights and remedies for collection as may be available
to it by law or agreement. Each Grantor grants a license pursuant to Section
13.03 in connection therewith.

                  13.03. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY. For the
purpose of enabling the Administrative Agent to exercise rights and remedies
under this Section 13 at such time as the Administrative Agent shall be lawfully
and otherwise entitled to exercise such rights and remedies, each Grantor hereby
grants to the Administrative Agent an irrevocable, non-exclusive license
(exercisable without payment of royalty or other compensation to such Grantor)
to use, license or sub-license any of the Collateral consisting of Intellectual
Property now owned or hereafter acquired by the Grantor to the extent that such
Grantor is not legally or contractually prohibited from doing so (Grantor
agreeing to use commercially reasonable efforts not to enter into, after the
Closing Date, any such contractual prohibition), and wherever the same may be
located, and including in such license reasonable access to all media in which
any of the licensed items may be recorded or stored and to all computer software
and programs used for the compilation or printout thereof. The use of such
license by the Administrative Agent shall be exercised, at the Administrative
Agent's option, only upon the occurrence and during the continuation of an Event
of Default; provided that any license, sub-license or other transaction entered
into by the Administrative Agent in accordance herewith shall be binding upon
each Grantor notwithstanding any subsequent cure, waiver or other termination of
an Event of Default.

                  13.04. WAIVERS BY GRANTORS. Each Grantor hereby irrevocably
waives (a) all rights of redemption from any foreclosure sale, (b) the benefit
of all valuation, appraisal, exemption and moratorium laws, (c) to the fullest
extent permitted by law, all rights to notice or a hearing prior to the exercise
by the Administrative Agent of its right to take possession of any Collateral,
whether by self-help or by legal process and any right to object to the
Administrative Agent taking possession of any Collateral by self-help, and (d)
if the Administrative Agent seeks to obtain possession of any Collateral by
replevin, claim and delivery, attachment, levy or other legal process, (i) any
notice or demand for possession prior to the commencement of legal proceedings,
(ii) the posting of any bond or security in any such proceedings, and (iii) any
requirement that the Administrative Agent retain possession and not dispose of
any Collateral until after a trial or final judgment in such proceedings.

                  13.05. APPLICATION OF PROCEEDS. Except as expressly provided
elsewhere in this Agreement, all proceeds received by the Administrative Agent
in respect of any sale of, collection from, or other realization upon all or any
part of the Collateral may, in the discretion of the Administrative Agent, be
held by the Administrative Agent as Collateral for, or then, or at any other
time thereafter, applied in full or in part by the Administrative Agent against,
the Secured Obligations in the following order of priority:

                  FIRST: to the payment of all reasonable costs and expenses of
         such sale, collection or other realization, including reasonable
         compensation to the Administrative Agent and its agents and counsel,
         and all other reasonable expenses, liabilities and advances made or
         incurred by the Administrative Agent in connection therewith, and all
         amounts for which the Administrative Agent is entitled to
         indemnification hereunder and all reasonable advances made by the

                                      -30-
<PAGE>

         Administrative Agent hereunder for the account of any Grantor, and to
         the payment of all reasonable costs and expenses paid or incurred by
         the Administrative Agent in connection with the exercise of any right
         or remedy hereunder, all in accordance with Section 19.09;

                  SECOND: to the payment of all other Secured Obligations (for
         the ratable benefit of the holders thereof) then due and payable;

                  THIRD: to any payments required by Sections 9-608(a)(1)(C) or
         9-615(a)(3) of the NYUCC; and

                  FOURTH, to the payment to or upon the order of the Grantor
         entitled thereto, or to whomsoever may be lawfully entitled to receive
         the same or as a court of competent jurisdiction may direct, of any
         surplus then remaining from such proceeds.

                  13.06. SURPLUS, DEFICIENCY. Any surplus proceeds of any sale
or other disposition by the Administrative Agent of any Collateral remaining
after discharge of the Credit Agreement and after all Secured Obligations are
paid in full and in cash and any payments required by Sections 9-608(a)(1)(C) or
9-615(a)(3) of the NYUCC are paid in full shall be paid over to the Grantor
entitled thereto, or to whomever may be lawfully entitled to receive such
surplus or as a court of competent jurisdiction may direct, but prior to
termination and discharge of the Credit Agreement, such surplus proceeds may be
retained by the Administrative Agent and held as Collateral until termination
and discharge of the Credit Agreement. The Borrower and each Guarantor shall be
and remain liable for any deficiency.

                  13.07. INFORMATION RELATED TO THE COLLATERAL. If, during the
continuance of an Event of Default, the Administrative Agent determines to sell
or otherwise transfer any Collateral, each Grantor shall, and shall cause any
Person controlled by it to, furnish to the Administrative Agent all information
the Administrative Agent may request that pertains or could pertain to the value
or condition of the Collateral or that would or might facilitate such sale or
transfer. The Administrative Agent shall have the right, notwithstanding any
confidentiality obligation or agreement otherwise binding upon it, freely (but
not in violation of any law, including federal securities laws) to disclose such
information, and any and all other information (including confidential
information) pertaining in any manner to the Collateral or the assets,
liabilities, results of operations, business or prospects of any Secured
Parties, freely to any Person that the Administrative Agent in good faith
believes to be a potential or prospective purchaser in such sale or transfer,
without liability for any disclosure, dissemination or use that may be made as
to such information by any such Person.

                  13.08. SALE EXEMPT FROM REGISTRATION. The Administrative Agent
shall be entitled at any such sale or other transfer, if it deems it advisable
to do so, to restrict the prospective bidders or purchasers to Persons who will
provide assurances satisfactory to the Administrative Agent that the Collateral
may be offered and sold to them without registration under the Securities Act,
and without registration or qualification under any other applicable state or
federal law. Upon the consummation of any such sale, the Administrative Agent
shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold. The Administrative Agent may solicit
offers to buy the Collateral, or any part of it, from a limited number of
investors deemed by the Administrative Agent, in its good faith judgment or in
good faith reliance upon advice of its counsel, to meet the requirements to

                                      -31-
<PAGE>

purchase securities under Regulation D promulgated under the Securities Act (or
any other regulation of similar import). If the Administrative Agent solicits
such offers from such investors, then the acceptance by the Administrative Agent
of the highest offer obtained from any of them shall be deemed to be a
commercially reasonable method of disposition of the Collateral.

                  13.09. RIGHTS AND REMEDIES CUMULATIVE. The rights provided for
in this Agreement and the other Loan Documents are cumulative and are not
exclusive of any other rights, powers or privileges or remedies provided by law
or in equity, or under any other instrument, document or agreement. The
Administrative Agent may exercise and enforce each right and remedy available to
it either before or concurrently with or after, and independently of, any
exercise or enforcement of any other right or remedy of the Administrative Agent
or any Secured Party against any Person or property. All such rights and
remedies shall be cumulative, and no one of them shall exclude or preclude any
other.

                  13.10. NO DIRECT ENFORCEMENT BY SECURED PARTIES. The
Administrative Agent may freely exercise and enforce any and all of its rights
and remedies hereunder, for the benefit of the Secured Parties. No Secured
Party, other than the Administrative Agent, shall have any independent right to
collect, take possession of, foreclose against or otherwise enforce the Security
Interests granted hereby.

         Section 14. STANDARDS FOR EXERCISING REMEDIES.

                  14.01. COMMERCIALLY REASONABLE MANNER. To the extent that
applicable law imposes duties on the Administrative Agent to exercise remedies
in a commercially reasonable manner, each Grantor acknowledges and agrees that
it is not commercially unreasonable for the Administrative Agent (a) to fail to
incur expenses reasonably deemed significant by the Administrative Agent to
prepare Collateral for disposition or otherwise to complete raw material or work
in process into finished goods or other finished products for disposition or to
postpone any such disposition pending any such preparation or processing; (b) to
fail to obtain third party consents for access to Collateral to be disposed of,
or to obtain or, if not required by other law, to fail to obtain governmental or
third party consents for the collection or disposition of Collateral to be
collected or disposed of; (c) to fail to exercise collection remedies against
account debtors or other persons obligated on Collateral or to remove any Lien
on or any adverse claims against Collateral; (d) to exercise collection remedies
against account debtors and other persons obligated on Collateral directly or
through the use of collection agencies and other collection specialists; (e) to
advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature; (f) to
contact other persons, whether or not in the same business as such Grantor, for
expressions of interest in acquiring all or any portion of the Collateral; (g)
to hire one or more professional auctioneers to assist in the disposition of
Collateral, whether or not the collateral is of a specialized nature; (h) to
dispose of Collateral by utilizing Internet sites that provide for the auction
of assets of the types included in the Collateral or that have the reasonable
capability of doing so, or that match buyers and sellers of assets; (i) to
dispose of assets in wholesale rather than retail markets; (j) to disclaim
disposition warranties; (k) to purchase insurance or credit enhancements to
insure the Administrative Agent against risks of loss, collection or disposition
of Collateral or to provide to the Administrative Agent a guaranteed return from
the collection or disposition of Collateral; or (l) to the extent deemed
appropriate by the Administrative Agent, to obtain the services of other
brokers, investment bankers, consultants and other professionals to assist the
Administrative Agent in the collection or disposition of any of the Collateral.
Each Grantor acknowledges that the purpose of this Section 14 is to provide
non-exhaustive indications of what actions or omissions by the Administrative

                                      -32-
<PAGE>

Agent would not be commercially unreasonable in the Administrative Agent's
exercise of remedies against the Collateral and that other actions or omissions
by the Administrative Agent shall not be deemed commercially unreasonable solely
on account of not being indicated in this Section 14. Without limiting the
foregoing, nothing contained in this Section 14 shall be construed to grant any
rights to any Grantor or to impose any duties on the Administrative Agent that
would not have been granted or imposed by this Agreement or by applicable law in
the absence of this Section 14.

                  14.02. STANDARD OF CARE. The powers conferred on the
Administrative Agent hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such powers.
Except for the exercise of reasonable care in the custody of any Collateral in
its possession and the accounting for moneys actually received by it hereunder,
the Administrative Agent shall have no duty as to any Collateral or as to the
taking of any necessary steps to preserve rights against prior parties or to
protect, preserve, vote or exercise any rights pertaining to any Collateral. The
Administrative Agent shall be deemed to have exercised reasonable care in the
custody and preservation of Collateral in its possession if such Collateral is
accorded treatment substantially equal to that which the Administrative Agent
accords its own property or if it selects, with reasonable care, a custodian to
hold such Collateral on its behalf.

        Section 15. WAIVERS BY GRANTOR; OBLIGATIONS ABSOLUTE.

                  15.01. SPECIFIC WAIVERS. Each Grantor waives demand, notice,
protest, notice of acceptance of this Agreement, notice of loans made, credit
extended, Collateral received or delivered or other action taken in reliance
hereon and all other demands and notices of any description.

                  15.02. OBLIGATIONS ABSOLUTE. All rights of the Administrative
Agent hereunder, the Security Interest and all obligations of the Grantors
hereunder shall be absolute and unconditional irrespective of (a) any lack of
validity or enforceability of the Credit Agreement, any other Loan Document, any
agreement with respect to any of the Secured Obligations or any other agreement
or instrument relating to any of the foregoing, (b) any change in the time,
manner or place of payment of, or in any other term of, all or any of the
Secured Obligations, or any other amendment or waiver of or any consent to any
departure from the Credit Agreement, any other Loan Document, or any other
agreement or instrument, (c) any exchange, release or non-perfection of any Lien
on other collateral, or any release or amendment or waiver of or consent under
or departure from or any acceptance of partial payment thereon and or
settlement, compromise or adjustment of any Secured Obligation or of any
guarantee, securing or guaranteeing all or any of the Secured Obligations, or
(d) any other circumstance that might otherwise constitute a defense available
to, or a discharge of, any Grantor in respect of the Secured Obligations or this
Agreement.

         Section 16. MARSHALLING. The Administrative Agent shall not be required
to marshal any present or future collateral security (including but not limited
to this Agreement and the Collateral) for, or other assurances of payment of,
the Secured Obligations or any of them or to resort to such collateral security
or other assurances of payment in any particular order, and all of its rights
hereunder and in respect of such collateral security and other assurances of
payment shall be cumulative and in addition to all other rights, however
existing or arising. To the extent that it lawfully may, each Grantor hereby
agrees that it shall not invoke any law relating to the marshalling of
collateral which might cause delay in or impede the enforcement of the
Administrative Agent's rights under this Agreement or under any other instrument
creating or evidencing any of the Secured Obligations or under which any of the
Secured Obligations is outstanding or by which any of the Secured Obligations is

                                      -33-
<PAGE>

secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, each Grantor hereby irrevocably waives the benefits of all such
laws.

         Section 17. INTEREST. Until paid, all amounts due and payable by each
Grantor hereunder shall be a debt secured by the Collateral and shall bear,
whether before or after judgment, interest at a rate per annum equal to the rate
per annum at which interest would then be payable on past due Base Rate Loans
under the Credit Agreement, from the date of payment by the Administrative Agent
to the date reimbursed by such Grantor, and such interest shall be payable by
such Grantor to the Administrative Agent on demand.

         Section 18. REINSTATEMENT. The obligations of each Grantor pursuant to
this Agreement shall continue to be effective or automatically be reinstated, as
the case may be, if at any time payment of any of the Secured Obligations is
rescinded or otherwise must be restored or returned by the Administrative Agent
or any other Secured Party upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of such Grantor or any other obligor or otherwise,
all as though such payment had not been made.

        Section 19. MISCELLANEOUS.

                  19.01. NOTICES. All notices, requests and demands to or upon
the Administrative Agent or any Grantor hereunder shall be effected in the
manner provided for in Section 10.2 of the Credit Agreement; provided that any
such notice, request or demand to or upon any Guarantor shall be addressed to
such Guarantor at its notice address set forth beneath its signature to this
Agreement.

                  19.02. GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK. Each Grantor agrees that any suit for the enforcement of this
Agreement may be brought in the courts of the State of New York or any federal
court sitting therein and consents to the non-exclusive jurisdiction of such
court and to service of process in any such suit being made upon such Grantor by
mail at the address specified in Section 10.2 of the Credit Agreement or in the
case of any Guarantor, beneath its signature to this Agreement. Each Grantor
hereby waives any objection that it may now or hereafter have to the venue of
any such suit or any such court or that such suit is brought in an inconvenient
court.

                  19.03. WAIVER OF JURY TRIAL, ETC. EACH GRANTOR WAIVES ITS
RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY
LITIGATION OR DISPUTE DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE
PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS. EXCEPT AS PROHIBITED BY LAW, EACH
GRANTOR WAIVES ANY RIGHT WHICH IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION
OR DISPUTE REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES. Each Grantor certifies that neither the Administrative Agent,
any other Secured Party nor any representative, agent or attorney of the
Administrative Agent or other Secured Party has represented, expressly or
otherwise, that the Administrative Agent or other Secured Party would not, in
the event of litigation, seek to enforce the foregoing waivers and acknowledges

                                      -34-
<PAGE>

that, in entering into the Credit Agreement and the other Loan Documents to
which any Secured Party is a party, such Secured Party is relying upon, among
other things, the waivers and certifications contained in this Section 19.03.

                  19.04. COUNTERPARTS. This Agreement may be executed in two or
more separate counterparts, each of which shall constitute an original and all
of which shall collectively and separately constitute one and the same
agreement.

                  19.05. HEADINGS. The headings of each section of this
Agreement are for convenience only and shall not define or limit the provisions
thereof.

                  19.06. NO STRICT CONSTRUCTION. The parties hereto have
participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

                  19.07. SEVERABILITY. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction).

                  19.08. SURVIVAL OF AGREEMENT. All covenants, agreements,
representations and warranties made by the Grantors herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the
Secured Parties and shall survive the execution and delivery of the Credit
Agreement, and the advance of all extensions of credit contemplated thereby,
regardless of any investigation made by any Secured Party, and shall continue in
full force and effect until this Agreement shall terminate (or thereafter to the
extent provided herein).

                  19.09. FEES AND EXPENSES; INDEMNIFICATION.

                           (a) The Grantors, jointly and severally, agree to pay
upon demand the amount of any and all expenses, including the fees,
disbursements and other charges of counsel and of any experts or agents, which
(i) any Secured Party may incur in connection with (x) collecting against any
Grantor under the guarantee contained in Section 2 or otherwise enforcing or
preserving any rights under this Agreement and the other Loan Documents, (y) the
exercise, enforcement or protection of any of the rights of such Secured Party
hereunder or (z) the failure of any Grantor to perform or observe any of the
provisions hereof, and (ii) the Administrative Agent may incur in connection
with (x) the administration of this Agreement (including the customary fees and
charges of such Secured Party for any audits conducted by it or on its behalf
with respect to the accounts receivable or inventory) or (y) the custody or
preservation of, or the sale of, collection from or other realization upon any
of the Collateral.

                           (b) Each Grantor agrees to pay, and to save the
Secured Parties harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the
Borrower would be required to do so pursuant to Section 10.5 of the Credit
Agreement.

                                      -35-
<PAGE>

                           (c) The agreements in this Section shall survive
repayment of the Obligations and all other amounts payable under the Credit
Agreement and the other Loan Documents.

                           (d) Each Grantor agrees that the provisions of
Section 2.20 of the Credit Agreement are hereby incorporated herein by
reference, mutatis mutandis, and each Secured Party shall be entitled to rely on
each of them as if they were fully set forth herein.

                  19.10. BINDING EFFECT; SEVERAL AGREEMENT. This Agreement is
binding upon each Grantor and the Secured Parties and their respective
successors and permitted assigns, and shall inure to the benefit of the
Grantors, the Secured Parties and their respective successors and permitted
assigns, except that no Grantor shall have any right to assign or transfer its
rights or obligations hereunder or any interest herein, except as specifically
permitted by the Credit Agreement, without the prior written consent of the
Administrative Agent (and any such assignment or transfer shall be void).

                  19.11. WAIVERS; AMENDMENT.

                           (a) No failure or delay of the Administrative Agent
in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Secured Parties hereunder and of
the Secured Parties under the Credit Agreement and other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provisions of this Agreement or consent to any
departure by any Grantor therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) below, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on any Grantor in any case shall entitle such or
any other Grantor to any other or further notice or demand in similar or other
circumstances.

                           (b) Neither this Agreement nor any provision hereof
may be waived, amended or modified except pursuant to an agreement or agreements
in writing entered into by the Administrative Agent and each affected Grantor;
PROVIDED, that any provision of this Agreement imposing obligations on any
Grantor may be waived by the Administrative Agent in a written instrument
executed by the Administrative Agent in accordance with Section 10.1 of the
Credit Agreement.

                  19.12. SET-OFF. Each Grantor hereby irrevocably authorizes
each Secured Party at any time and from time to time while an Event of Default
shall have occurred and be continuing, without notice to such Grantor or any
other Grantor, any such notice being expressly waived by each Grantor, to
set-off and appropriate and apply any and all deposits (general or special, time
or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Secured Party to or for the credit or the account of such Grantor,
or any part thereof in such amounts as such Secured Party may elect, against and
on account of the obligations and liabilities of such Grantor to such Secured
Party hereunder and claims of every nature and description of such Secured Party
against such Grantor, in any currency, whether arising hereunder, under the
Credit Agreement, any other Loan Document or otherwise, as such Secured Party
may elect, whether or not any Secured Party has made any demand for payment and

                                      -36-
<PAGE>

although such obligations, liabilities and claims may be contingent or
unmatured. Each Secured Party shall notify such Grantor promptly of any such
set-off and the application made by such Secured Party of the proceeds thereof,
provided that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of each Secured Party under this
Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which such Secured Party may have.

                  19.13. INTEGRATION. This Agreement and the other Loan
Documents represent the agreement of the Grantors, the Administrative Agent and
the other Secured Parties with respect to the subject matter hereof and thereof,
and there are no promises, undertakings, representations or warranties by any
Secured Party relative to subject matter hereof and thereof not expressly set
forth or referred to herein or in the other Loan Documents.

                  19.14. ACKNOWLEDGMENTS. Each Grantor hereby acknowledges that:

                           (a) it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party;

                           (b) no Secured Party has any fiduciary relationship
with or duty to any Grantor arising out of or in connection with this Agreement
or any of the other Loan Documents, and the relationship between the Grantors,
on the one hand, and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

                           (c) no joint venture is created hereby or by the
other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Secured Parties or among the Grantors and the
Secured Parties.

                  19.15. ADDITIONAL GRANTORS AND GUARANTORS. Each Subsidiary of
the Borrower that is required to become a party to this Agreement pursuant to
Section 6.10 of the Credit Agreement shall become a Grantor and Guarantor for
all purposes of this Agreement upon execution and delivery by such Subsidiary of
an Assumption Agreement in the form of ANNEX 1 hereto.

                  19.16. RELEASES.

                           (a) Notwithstanding anything to the contrary
contained in the Credit Agreement, herein or in any other Loan Document, upon
request of the Borrower in connection with any Disposition of Property permitted
by the Loan Documents, the Administrative Agent shall (without notice to or vote
or consent of any Lender, or any affiliate of any Lender that is a party to any
Specified Hedge Agreement or any other Secured Party) take such actions as shall
be required to release the Security Interest in any Collateral being Disposed of
in such Disposition, and to release any guarantee obligations of any Person
being Disposed of in such Disposition, to the extent necessary to permit
consummation of such Disposition in accordance with the Loan Documents, provided
that the Borrower shall have delivered to the Administrative Agent, at least
five (5) Business Days prior to the date of the proposed release, a written
request for release identifying the relevant Collateral being Disposed of in
such Disposition and the terms of such Disposition in reasonable detail,
including the date thereof, the price thereof and any estimated expenses in
connection therewith, together with a certification by the Borrower stating that

                                      -37-
<PAGE>

such transaction is in compliance with the Credit Agreement and the other Loan
Documents and that the proceeds of such Disposition will be applied in
accordance with the Credit Agreement and the other Loan Documents.

                           (b) If any of the Collateral shall be Disposed of by
any Grantor in a transaction permitted by the Credit Agreement, then the
Administrative Agent, at the request and sole expense of such Grantor, shall
execute and deliver to such Grantor all releases or other documents reasonably
necessary or desirable for the release of the Liens created hereby on such
Collateral. At the request and sole expense of the Borrower, a Subsidiary
Guarantor shall be released from its obligations hereunder in the event that all
the Capital Stock of such Subsidiary Guarantor shall be Disposed of in a
transaction permitted by the Credit Agreement; provided that the Borrower shall
have delivered to the Administrative Agent, at least five (5) Business Days
prior to the date of the proposed release, a written request for release
identifying the relevant Subsidiary Guarantor and the terms of the Disposition
in reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by the Borrower stating that such
transaction is in compliance with the Credit Agreement and the other Loan
Documents and that the Proceeds of such Disposition will be applied in
accordance therewith.

                  19.17. INTERCOMPANY DEBT.

                           (a) Each Grantor hereby agrees that any intercompany
Indebtedness or other intercompany payables or receivables, or intercompany
advances directly or indirectly made by or owed to such Grantor by any other
Grantor (collectively, "INTERCOMPANY DEBT"), of whatever nature at any time
outstanding shall be subordinate and subject in right of payment to the prior
payment in full in cash of the Borrower Obligations. Each Grantor hereby agrees
that following a single written notice to the Borrower, such Grantor will not,
while any Event of Default is continuing, accept any payment, including by
offset, on any Intercompany Debt until the Termination Date, in each case,
except with the prior written consent of the Administrative Agent.

                           (b) In the event that any payment on any Intercompany
Debt shall be received by a Grantor other than as permitted by this Section
19.17 before the Termination Date, such Grantor shall receive such payments and
hold the same in trust for, segregate the same from its own assets and shall
immediately pay over to, the Administrative Agent for the benefit of the
Administrative Agent and Lenders all such sums to the extent necessary so that
the Administrative Agent and the Lenders shall have been paid in full, in cash,
all Borrower Obligations owed or which may become owing.

                                      -38-
<PAGE>

                           (c) Upon any payment or distribution of any assets of
any Grantor of any kind or character, whether in cash, property or securities by
set-off, recoupment or otherwise, to creditors in any liquidation or other
winding-up of such Grantor or in the event of any case, proceeding or other
action described in Section 8(f) of the Credit Agreement, the Administrative
Agent and Lenders shall first be entitled to receive payment in full in cash, in
accordance with the terms of the Borrower Obligations and of this Agreement, of
all amounts payable under or in respect of such Borrower Obligations, before any
payment or distribution is made on, or in respect of, any Intercompany Debt, in
any such case, proceeding or other action, any distribution or payment, to which
the Administrative Agent or any Lender would be entitled except for the
provisions hereof shall be paid by such Grantor, or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or
distribution directly to the Administrative Agent (for the benefit of the
Administrative Agent and the Lenders) to the extent necessary to pay all such
Borrower Obligations in full in cash, after giving effect to any concurrent
payment or distribution to the Administrative Agent and Lenders (or to the
Administrative Agent for the benefit of the Administrative Agent and Lenders).

      [Remainder of Page Intentionally Left Blank; Signature Pages Follow]

                                      -39-
<PAGE>

         IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee
and Collateral Agreement to be duly executed and delivered as of the date first
above written.

GRANTORS:

SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation
SPANISH BROADCASTING SYSTEM FINANCE CORPORATION
SPANISH BROADCASTING SYSTEM OF GREATER MIAMI, INC.
SPANISH BROADCASTING SYSTEM OF ILLINOIS, INC.
SPANISH BROADCASTING SYSTEM INC., a New Jersey corporation
SPANISH BROADCASTING SYSTEM OF SAN ANTONIO, INC.
ALARCON HOLDINGS, INC.
SPANISH BROADCASTING SYSTEM OF CALIFORNIA, INC.
SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC., a Delaware corporation
SPANISH BROADCASTING SYSTEM OF FLORIDA, INC.
SBS OF GREATER NEW YORK, INC.
SBS FUNDING, INC.
SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC., a Puerto Rico corporation
SPANISH BROADCASTING SYSTEM NETWORK, INC.
SBS PROMOTIONS, INC.
SPANISH BROADCASTING SYSTEM SOUTHWEST, INC.
SPANISH BROADCASTING SYSTEM-SAN FRANCISCO, INC.
WRMA LICENSING, INC.
WXDJ LICENSING, INC.
WDEK LICENSING, INC.
WKIE LICENSING, INC.
WKIF LICENSING, INC.
WLEY LICENSING, INC.
WSKQ LICENSING, INC.
KLEY LICENSING, INC.
KSAH LICENSING, INC.
KZAB LICENSING, INC.
KZBA LICENSING, INC.
KPTI LICENSING, INC.
WCMQ LICENSING, INC.
KLAX LICENSING, INC.
WPAT LICENSING, INC.
WCMA LICENSING, INC.
WZET LICENSING, INC.
WMEG LICENSING, INC.
KXOL LICENSING, INC.

By: /s/ Joseph A. Garcia
    ------------------------------------------------
Name: Joseph Garcia
Title: Vice President and/or Chief Financial Officer
         of each Loan Party

               Guarantee and Collateral Agreement Signature Pages

                                      -40-
<PAGE>

Address for Notice:
2601 South Bayshore Drive, PH II
Coconut Grove, Florida 33133
Attention: Joseph A. Garcia
Telecopy:
Telephone: (305) 441-6901

Copy to:
Kaye, Scholer LLP
425 Park Avenue
New York, New York 10022
Attention: Edmond Gabbay
Telecopy: (212) 836-6476
Telephone: (212) 836-8000

Accepted: as to Sections 9.02 and 9.03

LEHMAN COMMERCIAL PAPER INC.
as Administrative Agent

By: /s/ G. Robert Berzins
    ---------------------------------------------
    Name:  G. Robert Berzins
    Title: Vice President

Address for Notice:
745 Seventh Avenue
New York, New York 10019
Attention:  Diane Albanese
Telecopy:  (646) 758-5130
Telephone:  (212) 526-4979

Copy to:
Clifford Chance US LLP
200 Park Avenue
New York, New York 10166
Attention:  Robert S. Finley
Telecopy:  (212) 878-8375
Telephone:  (212) 878-8000

               Guarantee and Collateral Agreement Signature Pages

                                      -41-
<PAGE>

                         EXHIBIT A TO SECURITY AGREEMENT

                             PERFECTION CERTIFICATE

         The undersigned, the Chief Financial Officer, Executive Vice President
and Secretary of Spanish Broadcasting System, Inc., a Delaware corporation
("SBS"), on behalf of SBS and each of its subsidiaries party to the Guarantee
and Collateral Agreement, dated as of October 30, 2003 (the "GUARANTEE AND
COLLATERAL AGREEMENT"; terms not defined herein having the meanings as assigned
to such terms therein) by SBS and such subsidiaries, as guarantors (SBS and each
such subsidiary, a "GRANTOR", and collectively, the "GRANTORS") in favor of
Lehman Commercial Paper Inc., as administrative agent (the "SECURED PARTY"),
hereby certifies to the Secured Party the following:

         1. NAME. Attached hereto as SCHEDULE 1 is the exact legal name of each
Grantor, as such name appears on its certificate or articles of incorporation,
partnership agreement, limited company agreement or other organizational
documents governing its formation, as applicable.

         2. OTHER IDENTIFYING FACTORS. Attached hereto as SCHEDULE 2 is the: (a)
mailing address; (b) the place of business or, if more than one, its chief
executive office, if different from its mailing address under subsection (a);
(c) type of organization; (d) jurisdiction of organization; and (e) state-issued
organizational identification number (if any), with respect to each of the
Grantors.

         3. OTHER NAMES, ETC.

         (a) Attached hereto as SCHEDULE 3(a) is a list of all other names
(including trade names or similar appellations) used by each Grantor, or any
other business or organization to which such Grantor became the successor by
merger, consolidation, amalgamation, acquisition, change in form, nature or
jurisdiction of organization or otherwise, now or at any time during the past
five years.

         (b) Attached hereto as SCHEDULE 3(b) is the information required in
Section 2 of this Perfection Certificate for any other business or organization
to which any Grantor became the successor by merger, consolidation, acquisition,
change in form, nature or jurisdiction of organization or otherwise, now or at
any time during the past five years.

         4. OTHER CURRENT LOCATIONS.

         (a) Attached hereto as SCHEDULE 4(a) are all locations in the United
States of America in which any Grantor maintains any books or records relating
to any of the Collateral consisting of accounts, instruments, chattel paper,
general intangibles or mobile goods.

         (b) Attached hereto as SCHEDULE 4(b) are all other places of business
of each Grantor in the United States of America.

         (c) Attached hereto as SCHEDULE 4(c) is a list of all real property in
the United States of America that is leased or owned by each Grantor.

         (d) Attached hereto as SCHEDULE 4(d) are all locations in the United
States of America where any of the Collateral consisting of inventory or
equipment is located for each Grantor.

         (e) Attached hereto as SCHEDULE 4(e) are the names and addresses of all
persons or entities other than each Grantor, such as lessees, consignees,
processors, warehousemen or purchasers of chattel paper, which have possession

                                      A-1
<PAGE>

or are intended to have possession of any of the Collateral consisting of
instruments, chattel paper, inventory or equipment and the nature of such
possession.

         5. PRIOR LOCATIONS.

         (a) Attached hereto as SCHEDULE 5(a) is the information required by
Sections 4(a) or (b) of this Perfection Certificate with respect to each
location or place of business previously maintained by each Grantor at any time
during the past five years in a state in which such Grantor has previously
maintained a location or place of business at any time during the past four
months.

         (b) Attached hereto as SCHEDULE 5(b) is the information required by
Sections 4(d) or (e) of this Perfection Certificate with respect to each other
location at which, or other person or entity with which, any of the Collateral
consisting of inventory or equipment has been previously held at any time during
the past twelve months.

         6. FIXTURES. Attached hereto as SCHEDULE 6 is the location of the real
estate to which any of the Collateral consisting of fixtures are or are to be
located, the name of the record owner of such real estate and the name and
address of each real estate recording office where a mortgage on the real estate
on which such fixtures are or are to be located would be recorded.

     7. INTELLECTUAL PROPERTY. Attached hereto as SCHEDULE 7(a) is a schedule
setting forth all of each Grantor's patents, patent licenses, trademarks,
trademark licenses, trade secrets and trade secret licenses, including the name
of the registered owner, the registration number and the expiration date of each
patent, patent license, trademark and trademark license owned by such Grantor.
Attached hereto as SCHEDULE 7(b) is a schedule setting forth all of each
Grantor's copyrights and copyright licenses, including the name of the
registered owner, the registration number and the expiration date of each
copyright or copyright license owned by such Grantor. Attached hereto as
SCHEDULE 7(c) is a schedule setting forth all of each Grantor's broadcasting and
other media licenses, including any Federal Communication Commission (FCC) or
other government licenses, including the name of the registered owner, the
registration number and the expiration date of each such license owned by each
of the Grantors. Attached hereto as SCHEDULE 7(d) is a schedule setting forth
are all existing filings (other than financing statements) against Intellectual
Property of each Grantor in the Patent and Trademark Office, the Copyright
Office or any other Government Office.

         8. STOCK OWNERSHIP AND OTHER EQUITY INTERESTS. Attached hereto as
SCHEDULE 8 is a list of all the issued and outstanding stock, partnership
interests, limited liability company membership interests or other equity
interests owned directly by each Grantor and the record and beneficial owners of
such stock, partnership interests, membership interest or other equity
interests.

         9. DEBT INSTRUMENTS. Attached hereto as SCHEDULE 9 is a description of
all promissory notes and other evidence of indebtedness held by each Grantor,
including all intercompany notes.

         10. OTHER INSTRUMENTS, LETTER-OF-CREDIT RIGHTS, CHATTEL PAPER. Attached
hereto as SCHEDULE 10 is a description of all other instruments (other than as
listed in paragraph 9 above), letter-of-credit rights and chattel paper (in each
case as defined in the UCC as in effect in New York on the date hereof) of each
Grantor.

         11. BANK ACCOUNTS. Attached hereto as SCHEDULE 11 is a description of
all deposit accounts and other bank accounts held by, or in the name of, each
Grantor, by account bank and account number.

                                      A-2
<PAGE>

         12. MOTOR VEHICLES. All motor vehicles owned by each Grantor which are
inventory or equipment are listed below or on SCHEDULE 12 hereto, by model,
model year and vehicle identification number.

         13. UNUSUAL TRANSACTIONS. Except for those purchases, acquisitions and
other transactions described on SCHEDULE 3(b) or SCHEDULE 13 attached hereto,
all of the Collateral has been originated by each Grantor in the ordinary course
of such Grantor's business or consists of goods which have been acquired by such
Grantor in the ordinary course from a person in the business of selling goods of
that kind.

         14. FILE SEARCH REPORTS. Attached hereto as SCHEDULE 14(a) is a true
copy of a file search report from the UCC filing officer (or, if such officer
does not issue such reports, from an experienced UCC search organization
acceptable to the Secured Party) (i) in each jurisdiction identified in Section
2(d) or in Section 4 or 5 with respect to each name set forth in Section 1 or 3,
(ii) from each filing officer in each real estate recording office identified on
SCHEDULE 6 with respect to real estate on which Collateral consisting of
fixtures are or are to be located and (iii) in each jurisdiction in which any of
the transactions described in SCHEDULE 3(b) or SCHEDULE 13 took place with
respect to the legal name of the person from which any Grantor purchased or
otherwise acquired any of the Collateral. Attached hereto as SCHEDULE 14(b) is a
true copy of each financing statement or other filing identified in such file
search reports to the extent the applicable UCC filing officer or search
organization is able to provide such copies.

         15. UCC FILINGS. Attached hereto as SCHEDULE 15 is a copy of financing
statements filed or to be filed in the central UCC filing office in the
jurisdiction identified in Section 2(d) and in each real estate recording office
referred to on SCHEDULE 6 hereto.

         16. TERMINATION STATEMENTS. To the extent reasonably requested by the
Secured Party to terminate existing Liens (other than Permitted Liens), a duly
signed or otherwise authorized termination statement in form acceptable to the
Secured Party has been duly filed with respect to any applicable financing
statement in each applicable jurisdiction identified in Section 2(d) of this
Perfection Certificate. Attached hereto as Schedule 16 is a true copy of each
such filing duly acknowledged or otherwise identified by the filing office.

         17. FILING FEES. All fees and taxes payable in connection with the
filings described in Sections 15 and 16 have been paid.

         18. CONTROL AGREEMENTS. Attached hereto as SCHEDULE 18 is a schedule of
all "control" agreements with respect to deposit accounts, letter-of-credit
rights, electronic chattel paper or investment property of each Grantor:

                  [Remainder of Page Intentionally Left Blank]

                                      A-3
<PAGE>

IN WITNESS WHEREOF, we have hereunto signed this Certificate on this __ day of
______, 2003.

                                              [GRANTORS]

                                              By:
                                                 ------------------------------
                                                 Name:
                                                 Title:

                                      A-4
<PAGE>

                 EXHIBIT B TO GUARANTEE AND COLLATERAL AGREEMENT

                SUPPLEMENT TO GUARANTEE AND COLLATERAL AGREEMENT
                                  (COPYRIGHTS)

WHEREAS, [ ], a [ ] corporation (herein referred to as "GRANTOR"), having an
address at [ ], has adopted, used and is using the copyrights listed on the
annexed Schedule 1-A, which copyrights are registered in the United States
Copyright Office (the "COPYRIGHTS");

WHEREAS, the Grantor has entered into a Guarantee and Collateral Agreement (said
Guarantee and Collateral Agreement, as it may hereafter be amended or otherwise
modified from time to time being the "SECURITY AGREEMENT", the terms defined
therein and not otherwise defined herein being used herein as therein defined)
in favor of the Secured Party; and

WHEREAS, pursuant to the Security Agreement, the Grantor has granted to Secured
Party a security interest in all right, title and interest of the Grantor in and
to the Copyrights, and the registrations and recordings thereof in the United
States Copyright Office or any other country or any political subdivision
thereof, all whether now or hereafter owned or licensable by the Grantor and all
extensions or renewals thereof and all Copyright Licenses, and all proceeds of
all of the foregoing, including, without limitation, any claims by the Grantor
against third parties for infringement thereof (the "COLLATERAL"), to secure the
payment and performance of the Secured Obligations.

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

The Grantor does hereby further acknowledge and affirm that the rights and
remedies of Secured Party with respect to the assignment of and grant of a
security interest in the Collateral made 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 745 Seventh Avenue, New York, New York 10019,
Attention:
______________.

                                      B-1
<PAGE>

IN WITNESS WHEREOF, the Grantor has duly executed or caused this Agreement to be
duly executed as of [                   ].

                               [                             ]

                               By:
                                 ---------------------------------------------
                                        Name:
                                        Title:

                                      B-2
<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

On this ____ day of __________, ____, before me personally appeared
__________________, to me known, who, being by me duly sworn, did depose and say
that he/she resides at _________________________________________ and that he/she
is _______________ of the Grantor; that he/she knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was affixed pursuant to authority of the Board of Directors of said
corporation and that he/she signed his/her name thereto in his/her capacity as
an authorized officer of said corporation pursuant to such authority.

                                                  ----------------------------
                                                         Notary Public

                                      B-3
<PAGE>

                   SCHEDULE 1-A TO THE SUPPLEMENT TO GUARANTEE
                            AND COLLATERAL AGREEMENT
                                  (COPYRIGHTS)

       COPYRIGHT                REGISTRATION DATE            REGISTRATION NO.
----------------------       ------------------------       ------------------

                                      B-4
<PAGE>

                 EXHIBIT C TO GUARANTEE AND COLLATERAL AGREEMENT

                SUPPLEMENT TO GUARANTEE AND COLLATERAL AGREEMENT
                                    (PATENTS)

WHEREAS, [ ], a [ ] corporation (herein referred to as "GRANTOR"), having an
address at [ ], owns the letters patent and/or applications for letters patent
of the United States of America more particularly described on Schedule 1-A
annexed hereto as part hereof (the "Patents");

WHEREAS, the Grantor has entered into a Guarantee and Collateral Agreement (said
Guarantee and Collateral Agreement, as it may hereafter be amended or otherwise
modified from time to time being the "SECURITY AGREEMENT", the terms defined
therein and not otherwise defined herein being used herein as therein defined)
in favor of the Secured Party; and

WHEREAS, pursuant to the Security Agreement, the Grantor has granted to Secured
Party a security interest in all right, title and interest of Grantor in and to
the Patents, together with all registrations and recordings thereof, including,
without limitation, applications, registrations and recordings in the United
States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof, all whether now or hereafter owned or licensable by
Grantor, and all reissues, continuations, continuations-in-part, term
restorations or extensions thereof, all Patent Licenses and all proceeds of all
of the foregoing, including, without limitation, any claims by Grantor against
third parties for infringement thereof for the full term of the Patents (the
"COLLATERAL"), to secure the prompt payment and performance of the Secured
Obligations.

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

The Grantor does hereby further acknowledge and affirm that the rights and
remedies of Secured Party with respect to the assignment of and grant of a
security interest in the Collateral made 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 745 Seventh Avenue, New York, New York 10019,
Attention:

 ______________.

                                      C-1
<PAGE>

IN WITNESS WHEREOF, the Grantor has duly executed or caused this Agreement to be
duly executed as of [                   ].

                               [                             ]

                               By:
                                 ---------------------------------------------
                                        Name:
                                        Title:

                                      C-2
<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

On this ____ day of ____________, before me personally appeared
________________, to me known, who, being by me duly sworn, did depose and say
that he/she resides at _________________________________________ and that he/she
is _______________ of the Grantor; that he/she knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was affixed pursuant to authority of the Board of Directors of said
corporation and that he/she signed his/her name thereto in his/her capacity as
an authorized officer of said corporation pursuant to such authority.

                                                   ----------------------------
                                                          Notary Public

                                      C-3
<PAGE>

                   SCHEDULE 1-A TO THE SUPPLEMENT TO GUARANTEE
                            AND COLLATERAL AGREEMENT
                                    (PATENTS)

                          DATE FILED                   SERIAL NO. OR
       TITLE              OR GRANTED                     PATENT NO.
-------------------  ----------------------       -------------------------

                                      C-4
<PAGE>

                 EXHIBIT D TO GUARANTEE AND COLLATERAL AGREEMENT

                SUPPLEMENT TO GUARANTEE AND COLLATERAL AGREEMENT
                                  (TRADEMARKS)

WHEREAS, [ ], a [ ] corporation (herein referred to as "GRANTOR"), having an
address at [ ], (1) has adopted, used and is using, or (2) has intended to use
and filed an application indicating that intention, but has not yet filed an
allegation of use under Section l(c) or l(d) of the Trademark Act, or (3) has
filed an application based on an intention to use and has since used and has
filed an allegation of use under Section l(c) or l(d) of the Trademark Act, the
trademarks, trade names, trade styles and service marks listed on the annexed
Schedule 1-A, which trademarks, trade names, trade styles and service marks are
registered in the United States Patent and Trademark Office (the "TRADEMARKS");
and

WHEREAS, the Grantor has entered into a Guarantee and Collateral Agreement (said
Guarantee and Collateral Agreement, as it may hereafter be amended or otherwise
modified from time to time being the "SECURITY AGREEMENT", the terms defined
therein and not otherwise defined herein being used herein as therein defined)
in favor of the Secured Party; and

WHEREAS, pursuant to the Security Agreement, the Grantor has granted to Secured
Party a security interest in all right, title and interest of the Grantor in and
to the Trademarks, together with all prints and labels on which said Trademarks
have appeared or appear, designs and general intangibles of like nature, now
existing or hereafter adopted or acquired, and the goodwill of the business
symbolized by the Trademarks and the applications, registrations and recordings
in the United States Patent and Trademark Office or in any similar office or
agency of the United States of America, any State thereof, or any other country
or any political subdivision thereof, all whether now or hereafter owned or
licensable by Grantor, and all reissues, extensions or renewals thereof, all
Trademark Licenses and all proceeds of all of the foregoing, including, without
limitation, any claims by Grantor against third parties for infringement thereof
(the "COLLATERAL"), to secure the payment and performance of the Secured
Obligations.

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

The Grantor does hereby further acknowledge and affirm that the rights and
remedies of Secured Party with respect to the grant of, security interest in and
mortgage on the Collateral made 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 745 Seventh Avenue, New York, New York 10019,
Attention:

______________.

                                      D-1
<PAGE>

IN WITNESS WHEREOF, the Grantor has duly executed or caused this Agreement to be
duly executed as of [            ].

                               [                             ]

                               By:
                                 ---------------------------------------------
                                        Name:
                                        Title:

                                      D-2
<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

On this ____ day of _________, ____, before me personally appeared
___________________, to me known, who, being by me duly sworn, did depose and
say that he/she resides at _________________________________________ and that
he/she is _______________ of the Grantor; that he/she knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was affixed pursuant to authority of the Board of Directors of said
corporation and that he/she signed his/her name thereto in his/her capacity as
an authorized officer of said corporation pursuant to such authority.

                                                     --------------------------
                                                          Notary Public

                                      D-3
<PAGE>

                   SCHEDULE 1-A TO THE SUPPLEMENT TO GUARANTEE
                            AND COLLATERAL AGREEMENT
                                  (TRADEMARKS)

                              APPLICATION OR        APPLICATION SERIAL NO. OR
        TRADEMARK            REGISTRATION DATE          REGISTRATION NO.
-----------------------   ------------------------  --------------------------

                                      D-4
<PAGE>

                 EXHIBIT E TO GUARANTEE AND COLLATERAL AGREEMENT

                            FORM OF CONTROL AGREEMENT

         This CONTROL AGREEMENT (as amended, supplemented or otherwise modified
from time to time, this "CONTROL AGREEMENT") dated as of _______________, 200__,
is made by and among _______________, a __________ corporation (the "GRANTOR"),
Lehman Commercial Paper Inc., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Secured Parties (as defined in the Guarantee and
Collateral Agreement referred to below), and ____________, a ____________ (the
"DEPOSITORY BANK").

         WHEREAS, the Depository Bank maintains for the Grantor a deposit
account, Account No. _________________ (the "PLEDGED ACCOUNT"), in the name of
the Grantor.

         WHEREAS, the Grantor has granted to the Administrative Agent for the
benefit of the Secured Parties a security interest in the Pledged Account, all
claims arising therefrom, all funds now or hereafter therein, all amounts now or
hereafter credited thereto and all Proceeds thereof (collectively, the
"COLLATERAL") pursuant to a Guarantee and Collateral Agreement, dated as of
October 30, 2003 (as amended, supplemented, replaced or otherwise modified from
time to time, the "GUARANTEE AND COLLATERAL AGREEMENT"), by the Grantor and the
other persons party thereto as grantors in favor of the Administrative Agent.

         WHEREAS, the following terms which are defined in Article 9 of the
Uniform Commercial Code in effect in the State of New York on the date hereof
(the "UCC") are used herein as so defined (whether or not such terms are
capitalized in the UCC): Bank, Bank's Jurisdiction, Control, Deposit Account and
Proceeds.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         SECTION 1. NOTICE OF SECURITY INTEREST. The Grantor, the Administrative
Agent and the Depository Bank are entering into this Control Agreement to
perfect, and to confirm the priority of, the Administrative Agent's security
interest in the Collateral. The Depository Bank acknowledges that this Control
Agreement constitutes written notification to the Depository Bank of the
Administrative Agent's security interest in the Collateral. The Depository Bank
agrees to promptly make all necessary entries or notations in its books and
records to reflect the Administrative Agent's security interest in the
Collateral. The Depository Bank acknowledges that the Administrative Agent has
control over the Pledged Account, all claims arising therefrom, all funds now or
hereafter therein all amounts now or hereafter credited thereto and all Proceeds
thereof.

         SECTION 2. COLLATERAL; PLEDGED ACCOUNT. (a) The Grantor agrees with the
Administrative Agent and the Depository Bank that the Grantor will direct that,
all funds transferred by the Grantor to the Depository Bank, deposited by the
Grantor with the Depository Bank, or otherwise held by the Depository Bank for
the Grantor, be credited to the Pledged Account, another deposit account with
the Depository Bank subject to a Control Agreement or, in accordance with
Section 7.07 of the Security Agreement, a payroll account.

         (b) The Depository Bank hereby represents and warrants to, and agrees
with the Grantor and the Administrative Agent, that (i) the Depository Bank is a
Bank, (ii) the Pledged Account is and shall remain a Deposit Account, (iii) the
Bank's Jurisdiction is, and during the term of this Control Agreement shall

                                      E-1
<PAGE>

remain, the State of New York and (iv) SCHEDULE 1 contains a true and complete
statement of the Pledged Account and credit balance therein as of the date
hereof. The Depository Bank will not, so long as this Control Agreement is in
effect, enter into any agreement with any other person that provides Control
over the Pledged Account to such person. The Depository Bank will not advance
credit to the Grantor secured by the Collateral (other than the fees and charges
referred to in Section 7).

         (c) The Administrative Agent hereby instructs the Depository Bank, and
the Depository Bank hereby confirms and agrees that, unless the Administrative
Agent shall otherwise direct the Depository Bank in writing, all funds
transferred by the Grantor to the Depository Bank, deposited by the Grantor with
the Depository Bank, or otherwise held by the Depository Bank for the Grantor
shall be credited to the Pledged Account, another deposit account with the
Depository Bank subject to a Control Agreement or a payroll account with the
Depository Bank.

         SECTION 3. CONTROL. The Depository Bank hereby agrees, upon written
direction from the Administrative Agent and without further consent from the
Grantor, (a) to comply with all instructions originated by the Administrative
Agent directing disposition of the funds in the Pledged Account and all other
instructions regarding the Pledged Account originated by the Administrative
Agent and to the extent directed by the Administrative Agent and to pay over to
the Administrative Agent all proceeds without any setoff or deduction, and (b)
except as otherwise directed by the Administrative Agent, not to comply with the
instructions or directions of any kind originated by the Grantor or any other
person regarding the Pledged Account or disposition of the funds therein;
PROVIDED, HOWEVER, that notwithstanding the foregoing provisions of this
paragraph (b), the Depository Bank may comply with instructions regarding
disposition of funds in the Pledged Account originated by the Grantor except
during any period beginning at the time that the Depository Bank has received
from the Administrative Agent a notice, substantially in the form of EXHIBIT 1
hereto (a "NOTICE OF DEFAULT") and ending at the time that the Depository Bank
has received from the Administrative Agent a written notice withdrawing such
Notice of Default.

         SECTION 4. OTHER AGREEMENTS; TERMINATION. The Depository Bank shall
simultaneously send to the Administrative Agent copies of all notices given and
statements rendered pursuant to the Pledged Account. The Depository Bank shall
notify promptly the Administrative Agent and the Grantor if any other person
asserts any lien, encumbrance, claim (including any adverse claim) or security
interest in or against any of the Collateral. As long as the Guarantee and
Collateral Agreement remains in effect, neither the Grantor nor the Depository
Bank shall terminate the Pledged Account without thirty (30) days' prior written
notice to the other party and the Administrative Agent. In the event of any
conflict between the provisions of this Control Agreement and any other
agreement governing the Pledged Account or the Collateral, the provisions of
this Control Agreement shall control.

         SECTION 5. PROTECTION OF DEPOSITORY BANK. The Depository Bank may rely
and shall be protected in acting upon any notice, instruction or other
communication that it reasonably believes to be genuine and authorized.

         SECTION 6. TERMINATION. This Control Agreement shall terminate
automatically upon receipt by the Depository Bank of written notice executed by
the Administrative Agent terminating this Agreement.

                                      E-2
<PAGE>

         SECTION 7. WAIVER; PRIORITY OF ADMINISTRATIVE AGENT'S INTERESTS. Other
than with respect to its fees and customary charges with respect to the Pledged
Account, the Depository Bank hereby waives its right to set off any obligations
of the Grantor to the Depository Bank against any or all of the Collateral and
hereby agrees that any and all liens, encumbrances, claims or security interests
which the Depository Bank may have against the Collateral, either now or in the
future in connection with the Pledged Account (other than in respect of such
fees and customary charges) are and shall be subordinate and junior to the prior
payment in full in immediately available funds of all obligations of the Grantor
now or hereafter existing under the Credit Agreement, the Guarantee and
Collateral Agreement, and all other documents related thereto, whether for
principal, interest (including, without limitation, interest as provided in the
Credit Agreement, whether or not such interest accrues after the filing of such
petition for purposes of the federal Bankruptcy Code or is an allowed claim in
such proceeding), indemnities, fees, premiums, expenses or otherwise. Except for
the foregoing and claims and interests of the Administrative Agent and the
Grantor in the Collateral and the rights of the Depository Bank therein, the
Depository Bank does not know of any claim to or security interest or other
interest in the Collateral.

         SECTION 8. EXCULPATION AND INDEMNITY. The Depository Bank shall not be
liable, except for its own gross negligence or willful misconduct or its breach
of the express terms of this Control Agreement and, except with respect to
claims based upon such gross negligence or willful misconduct or any such breach
that are successfully asserted against the Depository Bank, the Grantor shall
indemnify and hold harmless the Depository Bank (and any successor Depository
Bank) from and against any and all losses, liabilities, claims, actions, damages
and expenses, including reasonable attorneys' fees and disbursements arising out
of and in connection with this Control Agreement.

         SECTION 9. NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three days after being deposited
in the mail, postage prepaid, or, in the case of telecopy notice, when received,
to the Grantor's and the Administrative Agent's addresses as set forth in the
Guarantee and Collateral Agreement, and to the Depository Bank's address as set
forth below, or to such other address as any party may give to the others in
writing for such purpose:

                           [Name of Depository Bank]
                           [Address of Depository Bank]
                           Attention:-------------------
                           Telephone: (  )  ------  ----- -----------
                           Telecopy:  (  )  ------  ----- -----------

         SECTION 10. AMENDMENTS IN WRITING. None of the terms or provisions of
this Control Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the parties hereto.

         SECTION 11. ENTIRE AGREEMENT. This Control Agreement and the Guarantee
and Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

                                      E-3
<PAGE>

         SECTION 12. EXECUTION IN COUNTERPARTS. This Control Agreement may be
executed in any number of counterparts (including by telecopy), each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         SECTION 13. SUCCESSORS AND ASSIGNS. This Control Agreement will be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Grantor may not assign, transfer or
delegate any of its rights or obligations under this Control Agreement without
the prior written consent of the Administrative Agent.

         SECTION 14. GOVERNING LAW AND JURISDICTION. This Control Agreement has
been delivered to and accepted by the Administrative Agent and will be deemed to
be made in the State of New York. THIS CONTROL AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. Each of the parties hereto submits for itself and its property in any
legal action or proceeding relating to this Control Agreement, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the Courts of the State of New York, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

         SECTION 15. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

         IN WITNESS WHEREOF, each of the undersigned has caused this Control
Agreement to be duly executed and delivered as of the date first above written.

                                      [NAME OF GRANTOR]

                                      By:
                                        ---------------------------------------
                                           Name:
                                           Title:
                                      LEHMAN COMMERCIAL PAPER INC., as
                                      Administrative Agent

                                      By:
                                         --------------------------------------
                                           Name:
                                           Title:

                                      [NAME OF DEPOSITORY BANK]

                                      By:
                                         --------------------------------------
                                           Name:
                                           Title:

                                      E-4
<PAGE>

                                                  Exhibit 1 to Control Agreement

                                     [Date]

         To: [Name of Depository Bank
              Address of Depository Bank]

         Attention:
         Telecopy:

         Dear_______;

         We refer to the Control Agreement, dated _______ (as heretofore
         amended, modified or supplemented, the "CONTROL AGREEMENT") by and
         among [Name of Depository Bank,] [name of Grantor] and us. Except as
         otherwise provided herein, terms defined in the Control Agreement, when
         used herein, shall have the respective meanings therein provided.

         This constitutes a Notice of Default under and as such term is defined
         in the Control Agreement. Until the Depository Bank receives a written
         notice from us withdrawing this Notice of Default, the Depository Bank
         shall not comply with any instructions regarding disposition of funds
         in the Pledged Account.

         Very truly yours,

         LEHMAN COMMERCIAL PAPER INC.,
         as Administrative Agent

         By:_______________________
             Name:
             Title:

                                      E-5
<PAGE>

                 EXHIBIT F TO GUARANTEE AND COLLATERAL AGREEMENT

                            FORM OF CONTROL AGREEMENT

         This CONTROL AGREEMENT (as amended, supplemented or otherwise modified
from time to time, this "CONTROL AGREEMENT") dated as of ______________, 200__
is made by and among _______________, a __________ corporation (the "GRANTOR"),
Lehman Commercial Paper Inc., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Secured Parties (as defined in the Guarantee and
Collateral Agreement referred to below), and ____________, a ____________
corporation (the "ISSUER").

         WHEREAS, the Grantor has granted to the Administrative Agent for the
benefit of the Secured Parties a security interest in the uncertificated
securities of the Issuer owned by the Grantor from time to time (collectively,
the "PLEDGED SECURITIES"), and all additions thereto and substitutions and
Proceeds thereof (collectively, with the Pledged Securities, the "COLLATERAL")
pursuant to a Guarantee and Collateral Agreement, dated as of October 30, 2003
(as amended, supplemented, replaced or otherwise modified from time to time, the
"GUARANTEE AND COLLATERAL AGREEMENT"), by the Grantor and the other persons
party thereto as grantors in favor of the Administrative Agent.

         WHEREAS, the following terms which are defined in Articles 8 and 9 of
the Uniform Commercial Code in effect in the State of New York on the date
hereof (the "UCC") are used herein as so defined (whether or not such terms are
capitalized in the UCC): Adverse Claim, Control, Instruction, Issuer's
Jurisdiction, Proceeds and Uncertificated Security.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         SECTION 1. NOTICE OF SECURITY INTEREST. The Grantor, the Administrative
Agent and the Issuer are entering into this Control Agreement to perfect, and to
confirm the priority of, the Administrative Agent's security interest in the
Collateral. The Issuer acknowledges that this Control Agreement constitutes
written notification to the Issuer of the Administrative Agent's security
interest in the Collateral. The Issuer agrees to promptly make all necessary
entries or notations in its books and records to reflect the Administrative
Agent's security interest in the Collateral and, upon request by the
Administrative Agent, to register the Administrative Agent as the registered
owner of any or all of the Pledged Securities. The Issuer acknowledges that the
Administrative Agent has control over the Collateral.

         SECTION 2. COLLATERAL. The Issuer hereby represents and warrants to,
and agrees with the Grantor and the Administrative Agent that (i) the terms of
any limited liability company interests or partnership interests included in the
Collateral from time to time shall expressly provide that they are securities
governed by Article 8 of the Uniform Commercial Code in effect from time to time
in the State of [__________], (ii) the Pledged Securities are Uncertificated
Securities, (iii) the Issuer's Jurisdiction is, and during the term of this
Control Agreement shall remain, the State of [____________], (iv) SCHEDULE 1
contains a true and complete description of the Pledged Securities as of the
date hereof and (v) except for the claims and interests of the Administrative
Agent and the Grantor in the Collateral, the Issuer does not know of any claim
to or security interest or other interest in the Collateral.

                                      F-1
<PAGE>

         SECTION 3. CONTROL. The Issuer hereby agrees, upon written direction
from the Administrative Agent and without further consent from the Grantor, (a)
to comply with all Instructions and directions of every kind originated by the
Administrative Agent concerning the Collateral, to liquidate or otherwise
dispose of the Collateral as and to the extent directed by the Administrative
Agent and to pay over to the Administrative Agent all Proceeds of the Collateral
without any setoff or deduction, and (b) except as otherwise directed by the
Administrative Agent, not to comply with the Instructions or directions of any
kind originated by the Grantor or any other person with respect to the
Collateral.

         SECTION 4. OTHER AGREEMENTS. The Issuer shall notify promptly the
Administrative Agent and the Grantor if any other person asserts any lien,
encumbrance, claim (including any adverse claim) or security interest in or
against any of the Collateral. In the event of any conflict between the
provisions of this Control Agreement and any other agreement governing the
Pledged Securities or the Collateral, the provisions of this Control Agreement
shall control.

         SECTION 5. PROTECTION OF ISSUER. The Issuer may rely and shall be
protected in acting upon any notice, instruction or other communication that it
reasonably believes to be genuine and authorized.

         SECTION 6. TERMINATION. This Control Agreement shall terminate
automatically upon receipt by the Issuer of written notice executed by the
Administrative Agent terminating this Agreement.

         SECTION 7. NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three days after being deposited
in the mail, postage prepaid, or, in the case of telecopy notice, when received,
to the Grantor's and the Administrative Agent's addresses as set forth in the
Guarantee and Collateral Agreement, and to the Issuer's address as set forth
below, or to such other address as any party may give to the others in writing
for such purpose:

                           [Name of Issuer]
                           [Address of Issuer]
                           Attention:  -------------------
                           Telephone: (  )  ------  ----- -----------
                           Telecopy:  (  )  ------  ----- -----------

         SECTION 8. AMENDMENTS IN WRITING. None of the terms or provisions of
this Control Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the parties hereto.

         SECTION 9. ENTIRE AGREEMENT. This Control Agreement and the Guarantee
and Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

         SECTION 10. EXECUTION IN COUNTERPARTS. This Control Agreement may be
executed in any number of counterparts (including by telecopy), each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                                      F-2
<PAGE>

         SECTION 11. SUCCESSORS AND ASSIGNS. This Control Agreement will be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Grantor may not assign, transfer or
delegate any of its rights or obligations under this Control Agreement without
the prior written consent of the Administrative Agent.

         SECTION 12. GOVERNING LAW AND JURISDICTION. This Control Agreement has
been delivered to and accepted by the Administrative Agent and will be deemed to
be made in the State of New York. THIS CONTROL AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. Each of the parties hereto submits for itself and its property in any
legal action or proceeding relating to this Control Agreement, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the Courts of the State of New York, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

         SECTION 13. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

         IN WITNESS WHEREOF, each of the undersigned has caused this Control
Agreement to be duly executed and delivered as of the date first above written.

                                     [NAME OF GRANTOR]

                                     By:
                                        --------------------------------------
                                          Name:
                                          Title:

                                     LEHMAN COMMERCIAL PAPER INC., as
                                     Administrative Agent

                                     By:
                                        --------------------------------------
                                          Name:
                                          Title:

                                     [NAME OF ISSUER]

                                     By:
                                        --------------------------------------
                                          Name:
                                          Title:

                                      F-3
<PAGE>

                 EXHIBIT G TO GUARANTEE AND COLLATERAL AGREEMENT

                            FORM OF CONTROL AGREEMENT

         This CONTROL AGREEMENT (as amended, supplemented or otherwise modified
from time to time, this "CONTROL AGREEMENT") dated as of ______________, 200__,
is made by and among _______________, a __________ corporation (the "GRANTOR"),
Lehman Commercial Paper Inc., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Secured Parties (as defined in the Guarantee and
Collateral Agreement referred to below), and ____________, a ____________
corporation (the "BROKER").

         WHEREAS, the Broker maintains for the Grantor a securities account,
Account No. _________________ (the "PLEDGED ACCOUNT"), in the name of the
Grantor.

         WHEREAS, the Grantor has granted to the Administrative Agent for the
benefit of the Secured Parties a security interest in the Pledged Account, the
financial assets and any free credit balance carried therein, all security
entitlements with respect thereto, and all additions thereto and substitutions
and Proceeds thereof (collectively, the "COLLATERAL") pursuant to a Guarantee
and Collateral Agreement, dated as of October 30, 2003 (as amended,
supplemented, replaced or otherwise modified from time to time, the "GUARANTEE
AND COLLATERAL AGREEMENT"), by the Grantor and the other persons party thereto
as grantors in favor of the Administrative Agent.

         WHEREAS, the following terms which are defined in Articles 8 and 9 of
the Uniform Commercial Code in effect in the State of New York on the date
hereof (the "UCC") are used herein as so defined (whether or not such terms are
capitalized in the UCC): Adverse Claim, Commodity Account, Commodity Contract,
Control, Entitlement Order, Financial Asset, Investment Property, Proceeds,
Securities Account, Securities Intermediary, Securities Intermediary's
Jurisdiction and Security Entitlement.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         SECTION 1. NOTICE OF SECURITY INTEREST. The Grantor, the Administrative
Agent and the Broker are entering into this Control Agreement to perfect, and to
confirm the priority of, the Administrative Agent's security interest in the
Collateral. The Broker acknowledges that this Control Agreement constitutes
written notification to the Broker of the Administrative Agent's security
interest in the Collateral. The Broker agrees to promptly make all necessary
entries or notations in its books and records to reflect the Administrative
Agent's security interest in the Collateral. The Broker acknowledges that the
Administrative Agent has control over the Pledged Account, all Financial Assets
contained therein from time to time, and all Security Entitlements with respect
thereto.

         SECTION 2. COLLATERAL; PLEDGED ACCOUNT. (a) The Grantor hereby agrees
with the Administrative Agent and the Broker that that Grantor shall direct that
all Investment Property (other than any Commodity Contract or Commodity Account)
held by the Broker for the Grantor be credited to the Pledged Account or another
securities account subject to a Control Agreement maintained with the Broker.

         (b) The Broker hereby represents and warrants to, and agrees with the
Grantor and the Administrative Agent that (i) the Broker is a Securities
Intermediary with respect to the Grantor and the Pledged Account is a Securities
Account, (ii) all assets, property and items from time to time carried in the

                                      G-1
<PAGE>

Pledged Account, including, without limitation, any Investment Property, are,
and will continue to be, Financial Assets, (iii) the Securities Intermediary's
Jurisdiction is, and during the term of this Control Agreement shall remain, the
State of New York, (iv) SCHEDULE 1 contains a true and complete statement of the
Pledged Account and the Financial Assets carried therein and any free credit
balance therein as of the date hereof, (v) no Financial Asset included in the
Collateral is registered in the name of, payable to the order of, or specially
indorsed to, the Grantor, which has not been indorsed to the Broker or in blank,
and (vi) the Pledged Account is and shall remain a cash account, and the Broker
will not extend, directly or indirectly, any "purpose credit" (within the
meaning of such term under Regulation T of the Board of Governors of the Federal
Reserve System of the United States) to the Grantor in respect of the Pledged
Account. The Brokers will not, so long as this Control Agreement is in effect,
enter into any agreement with any other Person that provides Control over the
Pledged Account to such other Person.

         (c) The Administrative Agent hereby instructs the Broker, and the
Broker hereby confirms and agrees that, unless the Administrative Agent shall
otherwise direct the Broker in writing, the Investment Property (other than any
Commodity Contract or Commodity Account) from time to time held by the Broker
for the Grantor shall be credited only to, and carried only in, the Pledged
Account or another securities account subject to a Control Agreement maintained
with the Broker.

         SECTION 3. CONTROL. The Broker hereby agrees, upon written direction
from the Administrative Agent and without further consent from the Grantor, (a)
to comply with all instructions, Entitlement Orders and directions of every kind
originated by the Administrative Agent concerning the Collateral, to liquidate
or otherwise dispose of the Collateral as and to the extent directed by the
Administrative Agent and to pay over to the Administrative Agent all proceeds
without any setoff or deduction, and (b) except as otherwise directed by the
Administrative Agent, not to comply with the instructions, Entitlement Orders or
directions of any kind originated by the Grantor or any other person.

         SECTION 4. OTHER AGREEMENTS; TERMINATION; SUCCESSOR BROKERS. The Broker
shall simultaneously send to the Administrative Agent copies of all notices
given and statements rendered pursuant to the Pledged Account. The Broker shall
notify promptly the Administrative Agent and the Grantor if any other person
asserts any lien, encumbrance, claim (including any adverse claim) or security
interest in or against any of the Collateral. As long as the Guarantee and
Collateral Agreement remains in effect, neither the Grantor nor the Broker shall
terminate the Pledged Account without thirty (30) days' prior written notice to
the other party and the Administrative Agent. In the event of any conflict
between the provisions of this Control Agreement and any other agreement
governing the Pledged Account or the Collateral, the provisions of this Control
Agreement shall control. In the event the Broker no longer serves as Broker for
the Collateral, the Pledged Account and the Financial Assets carried therein
shall be transferred to a successor broker or custodian satisfactory to the
Administrative Agent, provided, that prior to such transfer, such successor
broker or custodian shall execute an agreement that is substantially in the form
of this Control Agreement or is otherwise in form and substance satisfactory to
the Administrative Agent.

         SECTION 5. PROTECTION OF BROKER INDEMNIFICATION. The Broker may rely
and shall be protected in acting upon any notice, instruction or other
communication that it reasonably believes to be genuine and authorized. The
Broker shall not be liable, except for its own gross negligence or willful

                                      G-2
<PAGE>

misconduct or its breach of the express terms of this Control Agreement and,
except with respect to claims based upon such gross negligence or willful
misconduct or any such breach that are successfully asserted against the Broker,
the Grantor shall indemnify and hold harmless the Broker (and any successor
Broker) from and against any and all losses, liabilities, claims, actions,
damages and expenses, including reasonable attorneys' fees and disbursements
arising out of and in connection with this Control Agreement.

         SECTION 6. TERMINATION. This Control Agreement shall terminate
automatically upon receipt by the Broker of written notice executed by the
Administrative Agent terminating this Agreement.

         SECTION 7. WAIVER; PRIORITY OF ADMINISTRATIVE AGENT'S INTERESTS. Other
than with respect to its fees and customary commissions with respect to the
Pledged Account, the Broker hereby waives its right to set off any obligations
of the Grantor to the Broker against any or all of the Collateral and hereby
agrees that any and all liens, encumbrances, claims or security interests which
the Broker may have against the Collateral, either now or in the future in
connection with the Pledged Account, are and shall be subordinate and junior to
the prior payment in full in immediately available funds of all obligations of
the Grantor now or hereafter existing under the Credit Agreement, the Guarantee
and Collateral Agreement, and all other documents related thereto, whether for
principal, interest (including, without limitation, interest as provided in the
Credit Agreement, whether or not such interest accrues after the filing of such
petition for purposes of the federal Bankruptcy Code or is an allowed claim in
such proceeding), indemnities, fees, premiums, expenses or otherwise. Except for
the foregoing and claims and interests of the Administrative Agent and the
Grantor in the Collateral and the rights of the Broker therein, the Broker does
not know of any claim to or security interest or other interest in the
Collateral.

         SECTION 8. NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy) and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three days after being deposited
in the mail, postage prepaid, or, in the case of telecopy notice, when received,
to the Grantor's and the Administrative Agent's addresses as set forth in the
Guarantee and Collateral Agreement, and to the Broker's address as set forth
below, or to such other address as any party may give to the others in writing
for such purpose:

                     [Name of Broker]
                     [Address of Broker]
                     Attention:-------------------
                     Telephone: ( ) ------ ----- -----------
                     Telecopy: ( ) ------ ----- -----------

         SECTION 9. AMENDMENTS IN WRITING. None of the terms or provisions of
this Control Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the parties hereto.

         SECTION 10. ENTIRE AGREEMENT. This Control Agreement and the Guarantee
and Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

                                      G-3
<PAGE>

         SECTION 11. EXECUTION IN COUNTERPARTS. This Control Agreement may be
executed in any number of counterparts (including by telecopy), each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         SECTION 12. SUCCESSORS AND ASSIGNS. This Control Agreement will be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Grantor may not assign, transfer or
delegate any of its rights or obligations under this Control Agreement without
the prior written consent of the Administrative Agent.

         SECTION 13. GOVERNING LAW AND JURISDICTION. This Control Agreement has
been delivered to and accepted by the Administrative Agent and will be deemed to
be made in the State of New York. THIS CONTROL AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. Each of the parties hereto submits for itself and its property in any
legal action or proceeding relating to this Control Agreement, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the Courts of the State of New York, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

         SECTION 14. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

         IN WITNESS WHEREOF, each of the undersigned has caused this Control
Agreement to be duly executed and delivered as of the date first above written.

                                [NAME OF GRANTOR]

                                By:
                                    --------------------------------------
                                     Name:
                                     Title:

                                LEHMAN COMMERCIAL PAPER INC., as
                                Administrative Agent

                                By:
                                    --------------------------------------
                                     Name:
                                     Title:

                                [NAME OF BROKER]

                                By:
                                    --------------------------------------
                                     Name:
                                     Title:

                                      G-4
<PAGE>

                 EXHIBIT H TO GUARANTEE AND COLLATERAL AGREEMENT

                            FORM OF CONTROL AGREEMENT

         This CONTROL AGREEMENT (as amended, supplemented or otherwise modified
from time to time, this "CONTROL AGREEMENT") dated as of ______________, 200__,
is made by and among _______________, a __________ corporation (the "GRANTOR"),
Lehman Commercial Paper Inc., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Secured Parties (as defined in the Guarantee and
Collateral Agreement referred to below), and ____________, a ____________
corporation (the "BROKER").

         WHEREAS, the Broker maintains for the Grantor a commodity account,
Account No. _________________ (the "PLEDGED ACCOUNT"), in the name of the
Grantor.

         WHEREAS, the Grantor has granted to the Administrative Agent for the
benefit of the Secured Parties a security interest in the Pledged Account, the
commodity contracts and any free credit balance carried therein, and all
additions thereto and substitutions and Proceeds thereof (collectively, the
"COLLATERAL") pursuant to a Guarantee and Collateral Agreement, dated as of
October 30, 2003 (as amended, supplemented, replaced or otherwise modified from
time to time, the "GUARANTEE AND COLLATERAL AGREEMENT"), by the Grantor and the
other persons party thereto as grantors in favor of the Administrative Agent.

         WHEREAS, the following terms which are defined in Articles 8 and 9 of
the Uniform Commercial Code in effect in the State of New York on the date
hereof (the "UCC") are used herein as so defined (whether or not such terms are
capitalized in the UCC): Commodity Account, Commodity Contract, Commodity
Intermediary's Jurisdiction, Control and Proceeds.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         SECTION 1. NOTICE OF SECURITY INTEREST. The Grantor, the Administrative
Agent and the Broker are entering into this Control Agreement to perfect, and to
confirm the priority of, the Administrative Agent's security interest in the
Collateral. The Broker acknowledges that this Control Agreement constitutes
written notification to the Broker of the Administrative Agent's security
interest in the Collateral. The Broker agrees to promptly make all necessary
entries or notations in its books and records to reflect the Administrative
Agent's security interest in the Collateral. The Broker acknowledges that the
Administrative Agent has control over the Pledged Account and all Commodity
Contracts and any free credit balance carried therein from time to time.

         SECTION 2. COLLATERAL; PLEDGED ACCOUNT. (a) The Grantor hereby agrees
with the Administrative Agent and the Broker that the Grantor shall direct that
all Commodity Contracts carried by the Broker on its books for the Grantor be
credited to the Pledged Account or another commodity account subject to a
Control Agreement maintained with the Broker.

         (b) The Broker hereby represents and warrants to, and agrees with the
Grantor and the Administrative Agent that (i) the Broker is a Commodity
Intermediary with respect to the Grantor and the Pledged Account is a Commodity

                                      H-1
<PAGE>

Account, (ii) the Commodity Intermediary's Jurisdiction is, and during the term
of this Control Agreement shall remain, the State of New York, (iii) SCHEDULE 1
contains a true and complete statement of the Pledged Account and the Commodity
Contracts and any free credit balance carried therein as of the date hereof, and
(iv) the Pledged Account is and shall remain a cash account, and the Broker will
not extend, directly or indirectly, any "purpose credit" (within the meaning of
such term under Regulation T of the Board of Governors of the Federal Reserve
System of the United States) to the Grantor in respect of the Pledged Account.
The Broker will not, so long as this Control Agreement is in effect, enter into
any agreement with any other person that provides Control over the Pledged
Account to such other person.

         (c) The Administrative Agent hereby instructs the Broker, and the
Broker hereby confirms and agrees that, unless the Administrative Agent shall
otherwise direct the Broker in writing, all Commodity Contracts carried by the
Broker on its books for the Grantor shall be credited only to, and carried only
in, the Pledged Account or another commodity account subject to a Control
Agreement maintained with the Broker.

         SECTION 3. CONTROL. The Broker hereby agrees, upon written direction
from the Administrative Agent and without further consent from the Grantor, (a)
to apply any value distributed on account of the Commodity Contracts carried in
the Pledged Account as directed by the Administrative Agent, to liquidate or
otherwise dispose of the Collateral as and to the extent directed by the
Administrative Agent and to pay over to the Administrative Agent all proceeds
and other value therefrom or otherwise distributed with respect thereto without
any setoff or deduction, and (b) except as otherwise directed by the
Administrative Agent, not to apply any value distributed on account of any
Commodity Contract carried in the Pledged Account as directed by the Grantor or
any other person.

         SECTION 4. OTHER AGREEMENTS; TERMINATION; SUCCESSOR BROKERS. The Broker
shall simultaneously send to the Administrative Agent copies of all notices
given and statements rendered pursuant to the Pledged Account. The Broker shall
notify promptly the Administrative Agent and the Grantor if any other person
asserts any lien, encumbrance, claim or security interest in or against any of
the Collateral. As long as the Guarantee and Collateral Agreement remains in
effect, neither the Grantor nor the Broker shall terminate the Pledged Account
without thirty (30) days' prior written notice to the other party and the
Administrative Agent. In the event of any conflict between the provisions of
this Control Agreement and any other agreement governing the Pledged Account or
the Collateral, the provisions of this Control Agreement shall control. In the
event the Broker no longer serves as Broker for the Collateral, the Pledged
Account, the Commodity Contracts and any free credit balance carried therein
shall be transferred to a successor broker, custodian or futures commission
merchant satisfactory to the Administrative Agent, provided, that prior to such
transfer, such successor broker, custodian or futures commission merchant shall
execute an agreement that is substantially in the form of this Control Agreement
or is otherwise in form and substance satisfactory to the Administrative Agent.

         SECTION 5. PROTECTION OF BROKER INDEMNIFICATION. The Broker may rely
and shall be protected in acting upon any notice, instruction or other
communication that it reasonably believes to be genuine and authorized. The
Broker shall not be liable, except for its own gross negligence or willful
misconduct or its breach of the express terms of this Control Agreement and,
except with respect to claims based upon such gross negligence or willful
misconduct or any such breach that are successfully asserted against the Broker,
the Grantor shall indemnify and hold harmless the Broker (and any successor
Broker) from and against any and all losses, liabilities, claims, actions,
damages and expenses, including reasonable attorneys' fees and disbursements
arising out of and in connection with this Control Agreement.

                                      H-2
<PAGE>

         SECTION 6. TERMINATION. This Control Agreement shall terminate
automatically upon receipt by the Broker of written notice executed by the
Administrative Agent terminating this Agreement.

         SECTION 7. WAIVER; PRIORITY OF ADMINISTRATIVE AGENT'S INTERESTS. Other
than with respect to its fees and customary commissions with respect to the
Pledged Account, the Broker hereby waives its right to set off any obligations
of the Grantor to the Broker against any or all of the Collateral and hereby
agrees that any and all liens, encumbrances, claims or security interests which
the Broker may have against the Collateral, either now or in the future in
connection with the Pledged Account, are and shall be subordinate and junior to
the prior payment in full in immediately available funds of all obligations of
the Grantor now or hereafter existing under the Credit Agreement, the Guarantee
and Collateral Agreement, and all other documents related thereto, whether for
principal, interest (including, without limitation, interest as provided in the
Credit Agreement, whether or not such interest accrues after the filing of such
petition for purposes of the federal Bankruptcy Code or is an allowed claim in
such proceeding), indemnities, fees, premiums, expenses or otherwise. Except for
the foregoing and claims and interests of the Administrative Agent and the
Grantor in the Collateral and the rights of the Broker therein, the Broker does
not know of any claim to or security interest or other interest in the
Collateral.

         SECTION 8. NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy) and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three days after being deposited
in the mail, postage prepaid, or, in the case of telecopy notice, when received,
to the Grantor's and the Administrative Agent's addresses as set forth in the
Guarantee and Collateral Agreement, and to the Broker's address as set forth
below, or to such other address as any party may give to the others in writing
for such purpose:

                     [Name of Broker]
                     [Address of Broker]
                     Attention:-------------------
                     Telephone: ( ) ------ ----- -----------
                     Telecopy: ( ) ------ ----- -----------

         SECTION 9. AMENDMENTS IN WRITING. None of the terms or provisions of
this Control Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the parties hereto.

         SECTION 10. ENTIRE AGREEMENT. This Control Agreement and the Guarantee
and Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

         SECTION 11. EXECUTION IN COUNTERPARTS. This Control Agreement may be
executed in any number of counterparts (including by telecopy), each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         SECTION 12. SUCCESSORS AND ASSIGNS. This Control Agreement will be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Grantor may not assign, transfer or
delegate any of its rights or obligations under this Control Agreement without
the prior written consent of the Administrative Agent.

                                      H-3
<PAGE>

         SECTION 13. GOVERNING LAW AND JURISDICTION. This Control Agreement has
been delivered to and accepted by the Administrative Agent and will be deemed to
be made in the State of New York. THIS CONTROL AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. Each of the parties hereto submits for itself and its property in any
legal action or proceeding relating to this Control Agreement, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the Courts of the State of New York, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

         SECTION 14. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

         IN WITNESS WHEREOF, each of the undersigned has caused this Control
Agreement to be duly executed and delivered as of the date first above written.

                                [NAME OF GRANTOR]

                                By:
                                    --------------------------------------
                                     Name:
                                     Title:

                                LEHMAN COMMERCIAL PAPER INC., as
                                Administrative Agent

                                By:
                                    --------------------------------------
                                     Name:
                                     Title:

                                [NAME OF BROKER]

                                By:
                                    --------------------------------------
                                     Name:
                                     Title:

                                      H-4
<PAGE>

                 EXHIBIT I TO GUARANTEE AND COLLATERAL AGREEMENT

                            FORM OF CONTROL AGREEMENT

         This CONTROL AGREEMENT (as amended, supplemented or otherwise modified
from time to time, this "CONTROL AGREEMENT") dated as of _________, 200_, is
made by and among _______________, a __________ corporation (the "BENEFICIARY"),
Lehman Commercial Paper Inc., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Secured Parties (as defined in the Guarantee and
Collateral Agreement referred to below), and ____________, a ____________ (the
"ISSUER").

         WHEREAS, the Issuer has issued Letter of Credit No. _________ (together
with all accepted amendment or other modifications thereto, the "CREDIT") in
favor of the Beneficiary.

         WHEREAS, the Beneficiary has granted to the Administrative Agent for
the benefit of the Secured Parties a security interest in and assignment of all
proceeds of and all of the Beneficiary's other Letter-of-Credit Rights with
respect to the Credit (the "COLLATERAL") pursuant to a Guarantee and Collateral
Agreement, dated as of October 30, 2003 (as amended, supplemented, replaced or
otherwise modified from time to time, the "GUARANTEE AND COLLATERAL AGREEMENT"),
by the Beneficiary and the other persons named as "Grantors" therein in favor of
the Administrative Agent.

         WHEREAS, the following terms which are defined in Article 9 of the
Uniform Commercial Code in effect in the State of New York on the date hereof
(the "UCC") are used herein as so defined (whether or not such terms are
capitalized in the UCC): Letter-of-Credit Rights and Proceeds.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         SECTION 1. NOTICE OF SECURITY INTEREST. The Beneficiary, the
Administrative Agent and the Issuer are entering into this Control Agreement to
perfect, and to confirm the priority of, the Administrative Agent's security
interest in the Collateral. The Issuer acknowledges that this Control Agreement
constitutes written notification to the Issuer of the Administrative Agent's
security interest in the Collateral. The Issuer agrees, upon its receipt of the
original Credit (which the Beneficiary agrees to transmit forthwith to the
Issuer), to promptly make a notation to reflect the Administrative Agent's
security interest in the Collateral upon the original Credit and thereafter
return the original Credit to the Beneficiary. The Issuer also agrees to
promptly make such other necessary entries or notations in its books and records
to reflect the Administrative Agent's security interest in the Collateral. The
Issuer acknowledges that the Administrative Agent has control over the
Collateral.

         SECTION 2. CONTROL. For the purposes of Sections 5-114(c) and 9-107 of
the UCC, the Issuer hereby consents to the grant to the Administrative Agent of
a security interest in the Letter-of-Credit Rights under the Credit and to the
assignment to the Administrative Agent of the Proceeds of the Credit. The Issuer
will pay all Proceeds of the Credit to the Administrative Agent in accordance
with the Administrative Agent's written instructions. The Beneficiary agrees to
immediately return to the Issuer any Proceeds of the Credit inadvertently paid
to the Beneficiary. The Issuer will not consent to any other assignment of
Proceeds of the Credit or to any other security interest in the Collateral.

                                      I-1
<PAGE>

         SECTION 3. EXTENT OF AGREEMENT. This Control Agreement (a) is not a
transfer or assignment of the Credit, (b) does not give the Administrative Agent
any interest in the Credit or any documents presented thereunder or any right to
draw on the Credit or to consent or to refuse to consent to amendments to the
Credit or to the cancellation thereof, (c) does not affect whether the
Beneficiary can transfer its right to draw on the Credit and (d) does not affect
the Beneficiary's right to draw on the Credit or the Beneficiary's or the
Issuer's right to consent or to refuse to consent to amendments to the Credit or
to the cancellation thereof.

         SECTION 4. REPRESENTATIONS AND WARRANTIES. The Beneficiary represents
and warrants that:

         (a) other than as set forth herein, the Beneficiary has not and will
not, by transfer or assignment of the Credit, by negotiation of drafts, by
drawing drafts to a third party or otherwise, assign the right to receive the
whole or any portion of the Collateral or give any other control rights,
authorization or direction in respect of the Collateral to any other party;

         (b) the Beneficiary has not and will not, without the prior written
consent of the Issuer, present to anyone but the Issuer any documents under the
Credit;

         (c) the Beneficiary's execution, delivery and performance of this
Control Agreement (i) are within its powers, (ii) have been duly authorized,
(iii) do not contravene any charter provision, by-law, resolution, contract or
other undertaking binding on or affecting the Beneficiary or any of its
properties, (iv) do not violate any applicable domestic or foreign law, rule or
regulation and (v) do not require any notice, filing or other action to, with or
by any governmental authority;

         (d) this Control Agreement has been duly executed and delivered by the
Beneficiary and is the Beneficiary's legal, valid and binding obligation; and

         (e) the transactions underlying the Credit (and any shipment of goods
or provision of services and any related financial arrangements) and this
Control Agreement do not violate any applicable United States or other law, rule
or regulation.

         SECTION 5. OTHER AGREEMENTS; TERMINATION; SUCCESSOR ISSUERS. The Issuer
shall simultaneously send to the Administrative Agent copies of all notices
given and statements rendered pursuant to the Credit. The Issuer shall notify
promptly the Administrative Agent and the Beneficiary if any other person
asserts any lien, encumbrance, claim (including any adverse claim) or security
interest in or against any of the Collateral. Until the Administrative Agent has
notified the Issuer and Beneficiary that this Agreement has been terminated in
accordance with Section 7, neither the Beneficiary nor the Issuer shall
terminate the Credit before its stated maturity without thirty (30) days' prior
written notice to the other party and the Administrative Agent. In the event of
any conflict between the provisions of this Control Agreement and any other
agreement governing the Credit or the Collateral, the provisions of this Control
Agreement shall control. In the event the Issuer no longer serves as Issuer for
the Credit, the Credit shall be transferred to a successor Issuer satisfactory
to the Administrative Agent, provided, that prior to such transfer, such
successor Issuer shall execute an agreement that is substantially in the form of
this Control Agreement or is otherwise in form and substance satisfactory to the
Administrative Agent.

                                      I-2
<PAGE>

         SECTION 6. PROTECTION OF ISSUER; INDEMNIFICATION. The Issuer may rely
and shall be protected in acting upon any notice, instruction or other
communication that it reasonably believes to be genuine and authorized. The
Issuer shall not be liable, except for its own gross negligence or willful
misconduct or its breach of the express terms of this Control Agreement and,
except with respect to claims based upon such gross negligence or willful
misconduct or any such breach that are successfully asserted against the Issuer,
the Beneficiary shall indemnify and hold harmless the Issuer (and any successor
Issuer) from and against any and all losses, liabilities, claims, actions,
damages and expenses, including reasonable attorneys' fees and disbursements
arising out of and in connection with this Control Agreement.

         SECTION 7. TERMINATION. This Control Agreement shall terminate
automatically upon receipt by the Issuer of written notice executed by the
Administrative Agent terminating this Agreement.

         SECTION 8. WAIVER. The Issuer hereby waives its right to set off any
obligations of the Beneficiary to the Issuer against any or all of the
Collateral.

         SECTION 9. NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three days after being deposited
in the mail, postage prepaid, or, in the case of telecopy notice, when received,
to the Beneficiary's and the Administrative Agent's addresses as set forth in
the Guarantee and Collateral Agreement, and to the Issuer's address as set forth
below, or to such other address as any party may give to the others in writing
for such purpose:

                     [Name of Issuer]
                     [Address of Issuer]
                     Attention:-------------------
                     Telephone: ( ) ------ ----- -----------
                     Telecopy: ( ) ------ ----- -----------

         SECTION 10. AMENDMENTS IN WRITING. None of the terms or provisions of
this Control Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the parties hereto.

         SECTION 11. ENTIRE AGREEMENT. This Control Agreement and the Guarantee
and Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

         SECTION 12. EXECUTION IN COUNTERPARTS. This Control Agreement may be
executed in any number of counterparts (including by telecopy), each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         SECTION 13. SUCCESSORS AND ASSIGNS. This Control Agreement will be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Beneficiary may not assign, transfer or
delegate any of its rights or obligations under this Control Agreement without
the prior written consent of the Administrative Agent.

                                      I-3
<PAGE>

         SECTION 14. GOVERNING LAW AND JURISDICTION. This Control Agreement has
been delivered to and accepted by the Administrative Agent and will be deemed to
be made in the State of New York. This Control Agreement is made subject to the
practice rules (E.G., UCP 500 or ISP 98) to which the Credit is subject. THIS
CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. Each of the parties hereto
submits for itself and its property in any legal action or proceeding relating
to this Control Agreement, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof.

         SECTION 15. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

         IN WITNESS WHEREOF, each of the undersigned has caused this Control
Agreement to be duly executed and delivered as of the date first above written.

                               [NAME OF BENEFICIARY],
                              as Beneficiary

                               By:
                                  --------------------------------------
                                    Name:
                                    Title:

                               LEHMAN COMMERCIAL PAPER INC.,
                               as Administrative Agent

                               By:
                                  --------------------------------------
                                    Name:
                                    Title:

                               [NAME OF ISSUER],
                               as Issuer

                               By:
                                  --------------------------------------
                                    Name:
                                    Title:

                                      I-4
<PAGE>

                  ANNEX 1 TO GUARANTEE AND COLLATERAL AGREEMENT

         ASSUMPTION AGREEMENT, dated as of ____________, 200__, made by
______________________, a _______________ corporation (the "ADDITIONAL
GRANTOR"), in favor of Lehman Commercial Paper Inc., as administrative agent (in
such capacity, the "ADMINISTRATIVE AGENT") for (i) the lenders (the "LENDERS")
party to the Credit Agreement referred to below and (ii) the other Secured
Parties (as defined in the Guarantee and Collateral Agreement (as hereinafter
defined)). All capitalized terms not defined herein shall have the meaning
ascribed to them in such Credit Agreement.

                              W I T N E S S E T H:

         WHEREAS, Spanish Broadcasting System, Inc., a Delaware corporation (the
"BORROWER"), the Lenders and the Administrative Agent have entered into a Credit
Agreement, dated as of October 30, 2003 (as amended, supplemented, replaced or
otherwise modified from time to time, the "CREDIT AGREEMENT");

         WHEREAS, in connection with the Credit Agreement, the Borrower and
certain of its Affiliates (other than the Additional Grantor) have entered into
the Guarantee and Collateral Agreement, dated as of October 30, 2003 (as
amended, supplemented or otherwise modified from time to time, the "GUARANTEE
AND COLLATERAL AGREEMENT") in favor of the Administrative Agent for the benefit
of the Secured Parties;

         WHEREAS, the Credit Agreement requires the Additional Grantor to become
a party to the Guarantee and Collateral Agreement; and

         WHEREAS, the Additional Grantor has agreed to execute and deliver this
Assumption Agreement in order to become a party to the Guarantee and Collateral
Agreement;

         NOW, THEREFORE, IT IS AGREED:

         1. GUARANTEE AND COLLATERAL AGREEMENT. By executing and delivering this
Assumption Agreement, the Additional Grantor, as provided in Section 19.15 of
the Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee
and Collateral Agreement as a Grantor and Guarantor thereunder with the same
force and effect as if originally named therein as a Grantor and Guarantor and,
without limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Grantor and Guarantor thereunder. The
information set forth in Annex 1-A hereto is hereby added to the information set
forth in the Perfection Certificate or Perfection Supplement most recently
delivered pursuant to the terms of the Guarantee and Collateral Agreement. The
Additional Grantor hereby represents and warrants that each of the
representations and warranties as to the Additional Grantor contained in Section
6 of the Guarantee and Collateral Agreement is true and correct on and as the
date hereof (after giving effect to this Assumption Agreement) as if made on and
as of such date.

         2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

<PAGE>

         IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                        [ADDITIONAL GRANTOR]

                                        By:---------------------------------
                                             Name:
                                             Title:

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