Document:

cytationagmt

                              CYTATION CORPORATION

                              Consulting Agreement

        In consideration of the agreement of AMERICAN RADIO EMPIRE, INC., a Nevada
Corporation (the "Company") to retain CYTATION CORPORATION, a Delaware
corporation, as an independent consultant ("Consultant") to provide the services
set forth below for the term and compensation specified below, the Company
agrees with Consultant as follows:

        1. Definitions. For purposes of this Consulting Agreement, the following
terms shall have the meanings set forth below:

        "Act" means the Securities Act of 1933, as amended, and all regulations and
rules, promulgated or issued thereunder.

        "Commission" means the Securities and Exchange Commission.

        "Common Stock" means the Company's common stock, par value $0.01 per share.

        "Compliance Date" means the latest date that Consultant receives the
following: (i) written confirmation from the Company's outside legal counsel
that the Registration Statement has been declared effective by the Commission,
(ii) written confirmation from the Company's outside legal counsel that the
Consideration is registered pursuant to Section 12(b) or Section 12(g) of the
Exchange Act, and (iii) the Representation Letter.

        "Consideration" means the 500,000 restricted shares of the Company's common
stock and 125,000 Warrants as described herein.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
all regulations and rules, promulgated or issued thereunder.

        "Registration Statement" means the Company's registration statement or
registration statements on Form SB-2 or equivalent filed with the Commission in
which the Consideration is included for resale.

        "Representation Letter" means the letter addressed to Consultant executed
by a duly authorized officer of the Company acting pursuant to the resolution of
the board of directors of the Company which contains representations,
warranties, covenants and indemnities to and in favor of Consultant comparable
in scope and substance to those representations, warranties, covenants and
indemnities generally included in underwriting agreements executed in connection
with initial public offerings including, without limitation, the representations
and warranties set forth in Section 7 hereof.

        "Transfer Agent" means Computershare Trust Company of Golden, Colorado.

                                     Page 1

        "Warrants" means five year warrants exercisable one year after the
Compliance Date at 125% of the average closing price of the Common Stock during
the first 30 trading days. The Warrants shall be in the form provided in Exhibit
A hereto. The number of Warrants shall equal one-fourth the number of shares of
Common Stock issued to Consultant pursuant to Section 4 hereof.

        2. Services. From and after the date hereof until the expiration of the
Term, Consultant will provide assistance and advice with respect to the
following: preparing and filing the Registration Statement; compliance with
state securities laws; applying for listing on the OTCBB, NASDAQ or the American
Stock Exchange and assistance in meeting shareholder and stock ownership listing
criteria; development of strategies for listing on NASDAQ or the American Stock
Exchange, including the evaluation of and assistance in meeting alternative
listing requirements; obtaining market makers; evaluating opportunities for
research on the Company; evaluating general Company profile materials;
introductions to investment bankers; introduction to private placement investors
and private placement opportunities and general private to public company
transition issues and matters. Consultant shall also provide such other related
services as may be mutually agreed by Company and Consultant. Nothing in this
Agreement shall be construed as requiring Consultant to provide any investor
relations or financial public relations services or to assist the Company with
respect to retaining any third party investor relations financial public
relations services provider or, after the Compliance Date, to provide any
services to the Company that would reasonably require Consultant to have access
to information about the Company that is not generally available to the public.
Consultant's services in many instances will be supplemental to the services
provided to the Company by its outside legal counsel and firm of independent
auditors. All of Consultant's services are provided hereunder in good faith on a
best efforts basis, and Consultant shall not be liable to the Company if the
Compliance Date does not occur because the Registration Statement for any reason
is not declared effective.

        3. Term. This Agreement shall expire one year after the Compliance Date,
provided, however, that this Agreement may be terminated in accordance with
Section 5 hereof, and provided further that the representations and warranties
set forth in Section 7 of this Agreement shall survive the expiration of the
Term.

        4. Compensation. The Company has previously paid to Consultant $15,000.
Upon execution of this Agreement, Consultant shall issue the Consideration to or
as directed by Consultant. The Common Stock included in the Consideration shall
consist of not less than 9.9% of the sum, as of the date hereof, of the issued
and outstanding shares of Common Stock of the Company and all warrants and
options exercisable within one year.

        Within three business days after the Compliance Date, the Company will pay
to Consultant an additional $15,000.

        5. Termination. This Agreement may not be terminated by either party other
than as set forth herein. Consultant may terminate this Agreement if the Company
abandons or withdraws the Registration Statement or if the Compliance Date does
not occur within six months of the date hereof. If for any reason the Company
abandons or withdraws the Registration Statement and Consultant terminates this
Agreement, the balance of the cash fee to the Company pursuant to Section 4
shall be immediately due and payable, the Company shall pay a termination fee to
Consultant of $50,000, Consultant shall retain the Consideration. In such event,

                                     Page 2

the Company shall cause, without cost to Consultant, the Consideration (or
consideration received by the Company in exchange for the Consideration) to be
included for resale in any subsequent registration statement filed by the
Company or any successor-in-interest with the Commission.

        6. Expenses. Consultant will pay all of its expenses associated with its
performance of this Agreement other than out-of-pocket expenses incurred by
Consultant directly in connection with financial advisory services for which
Consultant is entitled to a fee pursuant to Section 15 hereof.

        7. Representations and warranties. The Company represents and warrants to
and agrees with Consultant as follows:

         (a) the Company has the right, power and authority to enter into this
Agreement and to issue to Consultant the Consideration and that this
Agreement and the issuance of the Consideration to Consultant have been
duly authorized by the Company's board of directors in a meeting called for
that purpose or by unanimous written consent, a copy of which is attached
hereto as Exhibit B;

         (b) the Consideration constitutes no less than 9.9% of the issued and
outstanding shares of Common Stock (including, for this purpose, warrants
and options exercisable within one year of the date hereof) and that such
shares have been validly issued and are fully paid and non-assessable;

         (c) before the expiration of the Term, the Company will not issue any
shares of Common Stock except in an arms-length private placement for fair
value, provided that such shares may not be the subject of a registration
statement, for a period ending six months after the expiration of the Term,
unless the holders of such shares agree to a lockup lasting until six
months after the effectiveness of such registration statement;

         (d) the Company has no class of equity securities other than Common
Stock and will not issue any such class of equity securities other than in
connection with an arms-length private placement for value, provided that
any such issue of equity securities which is convertible into Common Stock
will not allow such conversion to occur, or a registration statement to be
filed with respect thereto, until six months after the expiration of the
Term;

         (e) as of the Compliance Date and at all times through the expiration
of the date which is six months after the expiration of the Term, the total
number of options and warrants that have been authorized to purchase shares
of Common Stock will not exceed ten percent of the issued and outstanding
shares of Common Stock at the Compliance Date;

         (f) the Company will promptly prepare and, within 45 days of the date
hereof, file the Registration Statement with the Commission; will include
the Consideration in the Registration Statement for resale or otherwise for
sale or other disposition; will provide Consultant with an opportunity to
review the Registration Statement before it is filed with the Commission;
will provide Consultant with any comments from the Commission promptly
after receipt; will at all times diligently proceed in good faith to have
the Registration Statement declared effective at the earliest possible date
and to register promptly thereafter the Consideration under Section 12(b)
or Section 12(g) of the Exchange Act; and will deliver to Consultant the
Representation Letter.

                                     Page 3

         (g) the Company will provide the prospectus included in the
Registration Statement to its shareholders as required by the Act and
Exchange Act;

         (h) after the Compliance Date the Company will make all necessary
filings and take all other steps necessary to remain a reporting company
under the Exchange Act and to comply with the Act;

         (i) after the Compliance Date and before the expiration of the Term,
the Company will not file any registration statement with the Commission or
register any shares of Common Stock with the Commission on Form S-8 or
Regulation S;

         (j) the Company will cause its officers, directors and all
shareholders who own 1% or more of the Company's issued and outstanding
shares of capital stock on the date the Registration Statement is filed to
agree in writing to restrict the transfer of their equity securities until
the expiration of the Term;

         (k) after the Compliance Date, Consultant may use the Company's name
in its promotional materials;

         (l) the Company will enter into an agreement with the Transfer Agent
to serve as transfer agent for its securities for a term of no less than
one year and pay all fees associated with the issuance of the
Consideration; and

         (m) the Company is not entering this Agreement for purposes of
becoming a "shell" company and will exert its best efforts to continue to
be an operating entity after the Compliance Date for one year and will not
thereafter engage in any reverse merger or shell corporation transaction
for a period of one year.

        Consultant represents and warrants to and agrees with the Company that
it will not engage in any short sale practices or market stabilization
activities with respect to the Common Stock.

        8. Payments to Third Parties. Consultant reserves the right to pay
compensation in cash or in shares of the Consideration to third parties in
accordance with the Act and the Exchange Act in consideration for the
introduction of the Company to Consultant and for related services.

        9. Independent Contractor. In furnishing services, Consultant will at all
times be acting as an independent contractor.

        10. Company-Furnished Information. All information furnished by the Company
to Consultant ("Company-furnished information") shall be and remain the sole
property of the Company. Consultant agrees to use Company-furnished information
solely for the benefit of the Company and to mark and handle all
Company-furnished information in accordance with established Company policy made
known to Consultant. Consultant shall be fully responsible for the care and
protection of any Company-furnished information which may be in its possession
or custody or in the possession or custody of any person engaged by Consultant
and shall deliver all Company-furnished information to the Company at its
request upon completion upon termination of this Agreement. Consultant agrees

                                     Page 4

than no person other than its authorized representatives shall have access to
any confidential Company-furnished information.

        11. Trade Secrets. Consultant will not, during the term of service to the
Company or thereafter, disclose to others or use for its own benefit any trade
secrets acquired from the Company, its customers, suppliers, consultants or
affiliates. (A trade secret is information not generally known to the trade
which gives the Company an advantage over its competitors. Trade secrets can
include, by way of example, products under development, production methods and
processes, sources of supply, materials used in manufacture, customer lists,
costs of parts and materials, business and marketing plans, and information
concerning the filing or pendency of patent applications.)

        12. Confidentiality. Consultant shall not divulge or disclose to anyone
outside the Company, Company-furnished information or trade secrets. For the
purposes of Sections 10 and 11 of this Agreement, information and/or trade
secrets which pass into the public domain shall thereafter no longer be
considered confidential or secret.

        13. Conflict of Interest. Consultant agrees that it shall be its
responsibility to recognize, disclose and avoid any situation which might,
either directly or indirectly, adversely affect its judgment in acting for the
Company or which might otherwise involve a conflict between personal interest
and the interests of the Company.

        14. Non-Solicitation. This Agreement is intended to secure to the Company
the help and cooperation of Consultant and to generate good will on the
Company's behalf. Consultant agrees that for a period of one year after the
termination of its consulting services with the Company for any reason,
Consultant will not solicit, induce, attempt to hire, or hire any employee of
the Company, or assist in such hiring by any other person, organization, firm or
business, or encourage any such employee to terminate his or her employment with
the Company.

        15. Finders' Fee. The Company agrees to pay to Consultant a fee based on
the "Lehman Formula" for equity or debt funds received by the Company from third
parties introduced to the Company by Consultant or pursuant to negotiated
transactions in which Consultant provides any financial advisory services to the
Company. The Company agrees to include Consultant in all negotiations for
financing or for any other type of strategic transaction (including, but not
limited to, for the acquisition of the Company or the licensing of its products
or technology) which commence before the Compliance Date. Consultant's efforts
to provide equity or debt financing for the Company shall be on a best efforts
basis and shall consist solely of introductions of Company management to
prospective investors.

        16. Applicable Law. This Agreement shall be construed, interpreted and
applied in accordance with the substantive laws of the State of Delaware.

        17. Notice. Any written notice to be given under the Agreement must be
delivered in person or given by registered or certified mail:

         If to the Company, to:
                                              American Radio Empire, Inc.
                                              13210 Kerrville Folkway, Building G

                                     Page 5

                                              Austin, Texas 78729-7523
                                              Attention:  Dain L. Schult

         If to Consultant, to:
                                              Cytation Corporation
                                              251 Thames Street, No. 8 (Second Floor)
                                              P.O. Box 809
                                              Bristol, RI 02809
                                              Attention: General Counsel

        18. Entire Agreement and Amendment. This Agreement fully expresses the
entire and only agreement between the Company and Consultant respecting its
services as a consultant. All prior and collateral understandings, agreements
and promises with respect thereto are merged into this Agreement (including,
without limitation, previously executed undated agreement executed in March 2003
by the Company and Consultant). Consultant understands that this Agreement may
not be modified, waived, or extended unless agreed to in writing by an
authorized officer of the Company.

        19. Severability. In case any one or more of the provisions or part of a
provision contained in this Agreement shall, for any reason, be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement, but
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision or part of a provision had never been contained herein. In the event
that any provision of this Agreement shall be determined to be unenforceable by
any court of competent jurisdiction by reason of extending for too great a
period of time or over too large a geographic area or over too great a range of
activities, it shall be interpreted to extend only over the maximum period of
time, geographic area or range of activities as to which it may be enforceable.

        20. Delay in Filing or Effectiveness of Registration Statement. Consultant
shall have the right to cause the filing of the Registration Statement and/or,
if filed, the effectiveness of the Registration Statement, to be delayed for up
to 45 days. The total delay under this Section 20 shall not exceed 45 days, and
any such delays shall not be counted for purposes of the Company's
representation set forth in Section 7(f) hereof.

AMERICAN RADIO EMPIRE, INC.

By: /s/Dain Schult                                 Dated: August 1, 2003
    Dain Schult, Its President/CEO

CYTATION CORPORATION

                                     Page 6

By: /s/Richard Fisher                                 Dated: August 1, 2003
    Richard Fisher, its Chairman and General Counselassetagmt

                            ASSET PURCHASE AGREEMENT

        This Agreement, for the sale and purchase of substantially all the assets
used or usable in the operation of Broadcast Stations KCYL AM, Lampasas, Texas
and KACQ FM, Lometa, Texas, (hereinafter, the "Stations"), is between Mr. Ronnie
Witcher and Mrs. Debbie Witcher ("Seller"), a Texas sole-proprietorship which is
now the owner, operator and licensee of the Stations, and American Radio Empire,
Inc. ("Buyer" or "ARE"), a Nevada Corporation.

        In consideration of the mutual promises and covenants made in this
Agreement, and in reliance upon the representations and warranties contained
herein, the parties, intending to be legally bound, agree as follows:

                                   ARTICLE 1

                             ASSETS TO BE CONVEYED

        At the Closing, Buyer shall purchase from Seller and Seller shall assign,
convey, transfer and deliver to Buyer, by good and sufficient instruments, all
of the tangible and intangible assets used or usable in or required for the
operation of the Stations (the "Purchased Assets"), such assets to include but
not be limited to those assets described in the remainder of this Article 1,
except seller's cash on-hand and in banks, cash equivalents, and securities
(collectively, the "Excluded Assets").

        1.1 Licenses. Seller shall assign to Buyer the broadcast and other
licenses, permits and authorizations used in, required or intended for the
operation of the Stations, and all rights in pending applications (collectively,
the "Licenses"). A list of the Licenses is included in Schedule A to this
Agreement.

                                       1

        1.2 Personal Property. Seller shall convey to Buyer all the tangible
personal property used or usable in the operation of the Stations, including
without limitation all assets listed in Schedule B to this Agreement (the
"Personal Property") with the specific exception of the office and studio
building located at 505 North Key Avenue in Lampasas, Texas. The Personal
Property shall include all replacements and additions made in the ordinary
course of business between the date hereof and the Closing Date in accordance
with past practices.

        1.3 Agreements.

        (a) Seller shall assign and transfer to Buyer all contracts, leases
(including the tower lease), agreements and other rights which relate to the
assets or the operation of the Stations and are listed in Schedule C to this
Agreement (collectively, the "Contracts"). Prior to the Closing Date, Seller
shall use its best efforts to obtain the consent of any third parties necessary
for the assignment to Buyer of any Contract. Buyer shall assume and agree to pay
and perform all obligations of Seller under the Contracts, to the extent such
obligations arise or accrue after the Closing Date. Notwithstanding the
foregoing, Buyer will not be obligated to assume any Contract which Seller does
not have the right to assign Buyer or for which Seller has not obtained any
necessary third party consents. It shall be a condition precedent to Buyer's
closing hereunder that all Contracts listed on Schedule C-2 (the "Essential
Contracts") be assigned to Buyer at the Closing.

        (b) In addition, Seller shall assign and transfer to Buyer all agreements
for the sale for cash of broadcast time on the Stations in effect on the Closing
Date ("Air Time Agreements"). Buyer shall assume and agree to perform all
obligations of Seller under such agreements to the extent such obligations are
to be performed after the Closing Date. Notwithstanding the foregoing, Buyer, at

                                       2

its option, shall not be obligated to assume any such agreement which (i) is in
effect on the date hereof and has a term beyond the date which is one year from
the date hereof, (ii) is entered into after the date hereof and has a term
longer than ninety (90) days, (iii) obligates Buyer to do anything other than
provide broadcast time on the Stations, (iv) was not entered into in the
ordinary course of the Stations' Business for the benefit of the Stations and
substantially in accordance with past practices of the Stations or (v) is not
included on the Schedule delivered to Buyer on the Closing Date as provided in
Paragraph 12.1 (d) hereof. Nor will Buyer be obligated to assume any such
agreement which Seller does not have the right to assign Buyer or for which
Seller has not obtained any necessary third party consents. Prior to the Closing
Date, Seller shall use its best efforts to obtain the consent of any third party
necessary for the assignment to Buyer of any such agreement.

        (c) Anything herein to the contrary notwithstanding, Seller shall not
convey, and Buyer shall not be obligated to assume, accept or perform, any
agreements for the sale of broadcast time on the Stations which provide for
payment in goods, services, or other non-cash consideration in respect thereof
("Barter Transaction") except as provided in Paragraph 10.5 hereof, but subject
in all events to paragraph 8.2 (h) hereof.

        (d) Seller and Buyer will execute a mutually satisfactory lease for Buyer's
use of the existing station office/studio building located at 505 North Key
Avenue, Lampasas, Texas with a proposed monthly rent of $1,500.00. Additionally
Seller and Buyer will execute a mutually satisfactory consulting agreement for
Ronnie Witcher to provide on-going engineering consulting and equipment
maintenance to Buyer for $600.00 per month.

                                       3

        (e) Buyer shall not assume or be liable for any contract, liability or
obligation of the Seller of any kind or nature, whether known or unknown,
contingent, absolute or otherwise, other than as expressly provided herein.

        1.4 Intellectual Property Rights. Seller shall transfer and convey to Buyer
all copyrights, trademarks, service marks, trade names or other similar rights
(including, without limitation, all of Sellers rights, if any, in and to the
call letters KCYL and KACQ, all logos and licenses to use intellectual property
rights of others, as well as the use of the term "Radiogram" as a newsletter
marketing title) as used in connection with the operation of the Stations, and
any additions thereto made by Seller in the ordinary course of business between
the date hereof and the Closing Date, and all other intellectual property and
property rights, all goodwill and other general intangibles.

        1.5 Records. At the Closing Seller shall deliver to Buyer all files, records
and logs (or, except for the logs, copies thereof) relating to the business or
operation of the Stations as Buyer shall require or reasonably request
(collectively, the "Records"). The Records shall not include the Seller's
bookkeeping, financial and accounting records relating to the Stations.

        1.6 Accounts Receivable. All accounts receivable at Closing shall become
property of Buyer with Buyer's assumption of accounts payable that relate to the
operations of the Stations.

        1.7 Other Assets. Seller shall convey and deliver all other property and
property rights held for the operation of the Stations except the Excluded
Assets.

                                       4

                                   ARTICLE 2

                           PURCHASE PRICE FOR ASSETS

        The purchase price to be paid by Buyer to Seller shall be Eight Hundred
Thousand and no/100 DOLLARS ($800,000.00) to be paid by Buyer to Seller in the
following manner:

        2.1 Escrow Deposit. Coincident with the execution and subsequent filing of
a Form 314 for application to the Federal Communications Commission ("FCC") for
consent of transferring the stations licenses, Buyer will have deposited (or
caused to be deposited) with a mutually acceptable Escrow Agent, pursuant to an
executed escrow agreement (the "Escrow Agreement"), 100,000 shares of restricted
ARE common stock as a security deposit for its obligation to buy the Purchased
Assets (the "Deposit"). At the Closing, the Escrow Agent shall pay over to
Seller the Deposit as a portion of the stock payment portion of the purchase
price Buyer will pay for the Purchased Assets.

        2.2 Cash Payment at Closing. Buyer shall deliver to Seller at Closing by
wire transfer or other immediately available Federal funds, under instructions
to be given by Seller to Buyer at least one day before the Closing, the sum of
(i) Four Hundred Thousand and no/100 Dollars ($400,000.00) (the "Cash Portion")
plus or minus the prorations and adjustments described in Article 5 hereof.
$25,000 of this cash payment at Closing will be attributed to consideration for
Sellers' covenants not to compete with Buyer.

        2.3 Stock Payment at Closing. The balance of $400,000.00 worth of ARE
common stock (the exact number of shares to be determined on the day of Closing
based on market value of that stock use a trailing average of the ten (10)
trading days prior to the Closing) delivered to Seller on the date upon which

                                       5

the transaction contemplated by the Agreement are consummated (the "Closing
Date" and such consummation the "Closing"). Additionally there will be
restrictions (that Seller must agree to in writing) placed on this common stock
to be received by Seller. These restrictions will regulate the amount of shares
that can be sold on the open market by Seller as well as the timing of those
sales.

                                   ARTICLE 3

                                  FCC CONSENT

        The consummation of this Agreement is subject to the prior receipt of
consent of the FCC. At a future date, after the execution of this agreement and
the successful approval of Buyer's SB-2 registration with the Securities and
Exchange Commission ("SEC"), Buyer and Seller will join in the preparation of an
application for consent to assignment of the Stations' FCC Licenses as
contemplated herein (the "Application") and will, in any event, file the
Application within thirty (30) business days following its execution. The
parties will take or cooperate in taking all reasonable steps that are necessary
and proper to the expeditious and diligent prosecution of the Application to a
favorable conclusion. Upon execution of this Agreement, a copy will be sent to
the FCC for informational purposes. Additionally a copy of this Agreement will
be included in Buyer's SB-2 registration filing with the SEC. This Agreement
will be submitted to the FCC along with a completed FCC Form 314 Application on
the date at which Seller and Buyer wish to proceed with this transaction.

                                   ARTICLE 4

                                  TERMINATION

        (a) Buyer may terminate this Agreement upon written notice to Seller at any
time prior to the closing in the event (i) the Seller is in breach of any

                                       6

representation, warranty or covenant contained in this Agreement in any material
respect, or (ii) if any of the conditions set forth in Article 10 hereof shall
have became impossible to fulfill for reasons beyond control of the Buyer and
shall have not been waived.

        (b) Seller may terminate this Agreement upon written notice to Buyer at any
time prior to the Closing in the event (i) the Buyer is in breach of any
representation, warranty or covenant contained in this Agreement in any material
respect, or (ii) if any of the conditions set fourth in Article 11 hereof shall
have become impossible to fulfill for reasons beyond control of the Seller and
shall not have been waived.

        (c) If not sooner terminated in accordance with subparagraphs (a) or (b) of
this article 4, this Agreement shall terminate on April 30, 2004 (the "Outside
Closing Date") unless otherwise agreed by the parties hereto, provided, however,
that if the FCC has failed or refused to grant its consent to the assignment of
the FCC Licenses by grant of the Application for such consent by the Outside
Closing Date, or if such consent shall have been obtained but the grant of the
application shall not have become a "Final Order" (as defined hereinafter) by
the Outside Closing Date may be extended by mutual consent of both Seller and
Buyer, and further provided that if on or prior to the expiration of the
termination date, the FCC shall have granted its consent to the assignment of
the FCC Licenses by grant of the application for such consent but the grant of
the application shall not have become a Final Order, the Agreement shall be
automatically extended pending receipt of a Final Order.

        For purposes of this Agreement, a grant by the FCC shall be deemed to be a
"Final Order": (i) when the date for filing a request for administrative or
judicial review or reconsideration of such grant has expired without any such
filing having been made; and (ii) when the time within which the FCC and/or its

                                       7

staff may seek to review or reconsider such grant on its own motion has expired
without any such review or reconsideration having been ordered by the FCC and/or
its staff; and (iii) in the event of any filing of any request for
administrative or judicial review or reconsideration of such grant, or in the
event that review or reconsideration of such grant is instituted by the FCC or
its staff on the FCC's or the FCC staff's own motion, when the grant has been
reaffirmed or upheld and the time for seeking or instituting any further
administrative or judicial review or reconsideration with respect to such grant
has expired without any request for such further review or reconsideration
having been filed and without such further review or reconsideration having been
initiated.

        (d) Upon termination of this Agreement pursuant to subparagraph (a) (ii),
(a) (iii), (a) (iv), (b) (iii) or Paragraph (c) of this article 4, except
otherwise expressly provided herein, neither party shall have any further right
or liability hereunder and the Deposit shall be returned to Buyer together with
all interest accrued thereon. Upon termination of this Agreement pursuant to
subparagraph (a) (i) of this Article 4, the Deposit shall be returned to Buyer
together with all interest accrued thereon.

        (e) The provisions of Paragraph (e) of this Article 4 and the
indemnification provisions of this Agreement shall survive the termination of
this Agreement.

                                   ARTICLE 5

                           PRORATIONS AND ADJUSTMENTS

        The income and expenses attributable to the operation of the Stations up to
12:01 a.m. on the Closing Date shall be for the account of the Seller, and
thereafter for the account of the Buyer. Expenses including, but not limited to,
such items as power and utility charges, real and personal property taxes,

                                       8

advances to salesmen, frequency discounts, rents, wages, payroll taxes, vacation
pay and or other employee benefits for employees, if any, of Seller who enter
into the employment of Buyer as of the Closing Date, and similar prepaid and
deferred items shall be prorated between Buyer and Seller, the proration to be
made, insofar as feasible, on the Closing Date, with a final settlement within
ninety (90) days after the Closing Date.

                                    ARTICLE 6

                    REPRESENTATIONS AND WARRANTIES OF SELLER

        Seller represents and warrants to Buyer as follows:

        6.1 Licenses and Authorizations. Seller is, and on the Closing Date will be,
the holder of the Licenses relating to the Stations, all of which are in full
force and effect (and none of which shall be altered or modified between the
date hereof and the Closing Date); and, except as disclosed in Schedule A hereof
and except as may be expressly consented to in writing by Buyer, Seller has and
will have no applications outstanding for any operating authority, or for the
construction of any facility or for the modification of any authorization or
application therefor. Schedule A annexed hereto sets forth a complete listing of
all FCC Licenses and other authorizations currently held by or issued to Seller
in connection with the operation of the Stations. The Licenses constitute all
licenses, permits and authorizations from the FCC and other regulatory bodies
that are required for the operation of the Stations and the conduct of its
business as conducted on the date hereof. There is not now, and on the Closing
Date there will not be, pending, or to the knowledge of Seller threatened, any
action by or before the FCC to revoke, cancel, rescind, modify, or refuse to
renew in the ordinary course any of the Licenses, or any investigation, Order to
Show Cause, Notice of Violation, Notice of Apparent Liability for Forfeiture,

                                       9

Order of Forfeiture, or Complaint against the Stations or Seller. In the event
of any such action, or the filing or issuance of any such order, notice or
complaint, or knowledge of the threat thereof, Seller shall notify Buyer of same
within (5) business days after Seller receives notice thereof, and shall take
all reasonable measures to contest in good faith or seek removal or rescission
of such action, order, notice or complaint, and shall pay any sanctions imposed.
There is not now in existence any violation on any federal, state or local law
or regulation in respect of the operation of the Stations the effect of which,
individually or in aggregate, could be materially adverse to the Stations or the
Stations' Assets. Seller knows of no reason why the FCC should not approve the
Application required by Article 3 hereof.

        6.2 Title to and Condition of Personal Property. Seller has good and
marketable title to all of the Personal Property, free and clear of all liens,
mortgages, pledges, or encumbrances, except as indicated on Schedule B. All of
the Seller's Personal Property used or usable in the operation of the Stations
as of the date hereof is listed in Schedule B except for items, which may be
leased, which are included on Schedule C. Except as indicated on Schedule B, all
transmitting and studio equipment used or usable by Seller in the operation of
the Stations is now in proper operating condition and substantially good repair,
complies with all FCC requirements and generally accepted good engineering
practices and standards, is suitable for the purposes used and intended, and the
same shall be true with respect to the transmitting and studio equipment on the
Closing Date. At the Closing, the Personal Property shall be conveyed and/or
transferred to Buyer free and clear of all liens, mortgages, pledges, or
encumbrances.

                                       10

        6.3 Contracts and Air Time Agreements. Schedule C lists all written and
oral contracts, leases and agreements relating to the operation or assets of the
Stations to which Seller is a party as of the date hereof other than Air Time
Agreements. Seller is not in default under any Contract or Air Time Agreement.
Seller has provided Buyer with a copy of each written contract and a description
of each oral contract listed on Schedule C. As of the date hereof, Seller has
made all payments and is otherwise in compliance with the terms and conditions
in the Contracts or Air Time Agreements. As of the date hereof, the Contracts or
Air Time Agreements are, and on the Closing Date will be, in full force and
effect and enforceable by Seller in accordance with their terms, or pursuant to
renewals or extensions thereof on substantially the same terms.

        6.4 Intellectual Property Rights. Except in each case as set forth in
Schedule D: (i) Seller owns, possesses or has the right to use all Intellectual
Property Rights (as hereinafter defined) necessary or required for the conduct
of its business as presently conducted, or otherwise used by Seller, all of
which Intellectual Property Rights are identified on Schedule D; (ii) no
royalties or other amounts are payable by Seller to other persons by reason of
the ownership or use of Intellectual Property Rights; (iii) to the knowledge of
the Seller, no product or service marketed or sold by Seller and no activities
of Seller violate any license or infringe upon any Intellectual Property Rights
of others; (vi) Seller has not received any notice that any of its Intellectual
Property Rights or the operation of Seller's business in connection with
operation of the Stations conflicts with the Intellectual Property Rights of
others; and (v) to the knowledge of Seller, there is not any reasonable basis to
believe that any such violation, infringement or conflict may exist. As used
herein, the term "Intellectual Property Rights" means all licenses, patents,

                                       11

trademarks, service marks, trade names, copyrights, inventions, trade secrets,
proprietary processes, software and formulae, applications for patents,
trademarks, service marks, and copyrights, and other creative industrial and
intellectual property rights.

        6.5 Litigation. Except as disclosed in Schedule 6.5 hereof, there is no
judgment outstanding and no litigation, suit, action, claim investigation, Order
to Show Cause, Notice of Violation, Notice of Apparent Liability, complaint, or
proceeding pending before any forum, court or government agency (including the
FCC), or to the knowledge of Seller threatened, against or relating to the
Stations, its business operations, financial condition or customer relations,
the Purchased Assets, the right of Seller to dispose of the Purchased Assets or
to enter into and carry out this Agreement and Seller does not know of any basis
for any such action or proceeding.

        6.6 Insurance. Seller now has and shall maintain until the Closing Date in
full force and effect the policies of fire, hazard, and liability insurance on
the Purchased Assets and the Stations and its business are in effect on the date
hereof. All such policies of insurance are listed on Schedule 6.6 hereof. Seller
has delivered to Buyer evidence of all such policies and evidence of the payment
of premiums for the current period under each of such policies.

        6.7 Personnel. Seller has delivered to Buyer a list showing the names of
all persons currently employed at the Stations, together with a statement of the
salary or other compensation payable to such person and the basis thereof.
Seller is not a party to any collective bargaining agreement covering any of the
Stations' employees nor is any proceeding pending, or threatened, to designate a
union as the exclusive bargaining agent of such employees. No agreement exists

                                       12

that would require that Buyer employ any of the Stations' or Seller's employees
after the execution and delivery hereof and Buyer is not so obligated.

        6.8 Compliance with Laws. The operation of the Stations is now in
compliance with all applicable laws, rules and regulations of all federal, state
and local authorities or agencies so as to permit the Stations to operate as at
present and/or as it is fully licensed to do. The Stations have been, and shall
continue to be, operated in full compliance with is FCC Licenses, the
Communications Act of 1934, as amended, and the rules, regulations and policies
of the FCC. All applications, reports and other disclosures and filings required
by the FCC with respect to the Stations have been, and will be as of the Closing
Date, duly and timely filed. All such applications, reports and other
disclosures and filings are and will be as of the Closing Date hereunder
complete and accurate in all material respects. Seller possesses all of the
permits, authorizations, or consents necessary to operate the Stations and own
the Purchased Assets and lease the site in which is located Seller's
transmitting antenna tower in accordance with law, and they are all, and on the
Closing Date will be, transferable to Buyer, such that upon the Closing Buyer
will possess all permits, authorizations and consents necessary to enable the
Buyer to operate the Stations and own the Purchased Assets and lease the site in
which is located Seller's transmitting antenna tower, except to the extent any
third-party consent to the assignment of an Essential Contract may not have been
received.

        6.9 Absence of Restrictions. The execution, delivery and consummation of
this Agreement by Seller does not and on the Closing Date will not conflict
with, or result in breach of, the terms, conditions, or provisions of, or
constitute a default under, or constitute an event that permits the imposition
of a lien upon or the creation of a security interest in the Purchased Assets

                                       13

pursuant to, any agreement, instrument, law or regulation to which Seller is now
or on the Closing Date will be subject, except to the extent that consent to the
assignment of certain agreements to Buyer may be required as herein
contemplated.

        6.10 Taxes. Except as disclosed on Schedule 6.10, the Seller has filed all
income, franchise, sales and other tax returns, declarations, statements and
reports of every nature, including and schedule or attachment thereto and
including any amendment thereof ("Tax Return") required to be filed by it
relating to or affecting the Stations, accurately reflecting any and all taxes
owing to the United States or any other government or any subdivision thereof,
or any other taxing authority, and has paid in full or made adequate provision
in it's December 31, 2002 balance sheet and shall continue to pay in full and
make such provision for the payment of all taxes (including penalties and
interest) relating to the Stations with respect to all tax periods ending on or
before the Closing Date for which the Seller has or may have liability, whether
or not shown on any Tax Return. Except as disclosed on Schedule 6.10, there is
no unassessed tax deficiency proposed or threatened against the Stations, and
there are no tax liens on any of the Purchased Assets. There are, and will
hereafter be, no net tax deficiencies (including penalties and interest) of any
kind assessed against or relating to the Stations with respect to any of the
taxable periods ending on or before, or including, the Closing Date. The Seller
is not currently the beneficiary of any extension of time within which to file
any Tax Return. There are no outstanding agreements or waivers extending the
statutory period of limitations for filing any Tax Return. Proper amounts have
been withheld by the Seller from its employees, independent contractors and
other third parties in compliance with the tax withholding provisions of all
applicable federal, state, local, foreign and other laws, and timely deposits

                                       14

have been made of all payroll taxes due. Any provision hereof to the contrary
notwithstanding, this representation shall survive the Closing until the
expiration of any period during which any tax may be assessed.

        6.11 Public File. The Stations' local public inspection is and will be
maintained in compliance with the rules and regulations of the Commission, is
available for inspection by Buyer and will be delivered to Buyer at Closing.

        6.12 Reports. All reports, schedules, and/or returns of any administrative
agency of the Federal or any state or local governments heretofore required to
be filed by Seller in connection with the Stations have been filed and all such
reports, schedules, and returns required to be filed before the Closing Date
will have been filed before such date.

        6.13 Organization and Standing. Seller is and on the Closing Date will be a
sole proprietorship, validly existing and in good standing under the laws of the
State of Texas, with all requisite power and authority to enter into and perform
the terms of this Agreement, subject only to the issuance of the consent of the
FCC with respect thereto.

        6.14 Authorizations. Seller has taken all necessary corporate action to
approve the execution and delivery of this Agreement, and to approve the
performance of this Agreement and the consummation of the transactions
contemplated herein. This Agreement constitutes a valid and binding obligation
of Seller enforceable in accordance with its terms.

        6.15 Solvency. As of the date hereof and on the Closing Date (either before
or after the transactions contemplated herein), the fair market value of
Seller's assets do and will exceed the face amount of its liabilities, Seller

                                       15

has and will have adequate working capital to conduct its business, and Seller
is paying and will be able to pay its debts as they mature.

        6.16 Environmental, Health and Safety Matters. Except as set forth on
Schedule 6.16, Seller has not caused or contributed to any condition or
potential condition existing at any leased or owned facility of the Seller or at
any former facility of the Seller with respect to the storage or release into
the earth or its atmosphere of effluent, waste or other materials, solid liquid
or gaseous, nor has any material been disposed of or released in any way or
manner, which would or may in the future cause the Buyer or its affiliates to be
liable for damages, fines or penalties or to incur expenses (including without
limitation legal and consulting fees) to investigate or correct any such
condition or to meet with or otherwise communicate with any governmental unit or
agency or public or private body in connection therewith. The Seller has never
exposed any employee or other individual to any substance or condition, or owned
or operated any property or facility in any manner, that would or may in the
future cause the Buyer or its affiliates to be liable for damages, fines or
penalties or to incur expenses (including without limitation legal and
consulting fees) in connection with any claim of illness of or personal injury
to any employee or other individual. Without limiting the generality of the
foregoing, the Seller and its assets have been and are in compliance with all
applicable laws and regulations regarding the environment, health, or safety.
The Seller has not received any notice, nor to the knowledge of the Seller is
any such notice pending, from any governmental, public or private body claiming
any violation or potential violation of any zoning, building, health, safety or
environmental law or ordinance, or requiring any work, repairs, construction,
alterations, noise reduction, odor elimination, cleanup or installation,
encapsulation or abatement which has not been complied with, and the Seller has

                                       16

delivered to the Buyer copies of each such notice, whether or not complied with.
All of the assets of the Seller and all properties and equipment used at any
time in or at the Stations have been free of asbestos, PCBs, methylene chloride,
trichloroethylene, 1,2 trans-dichloroethylene, dioxins, dibenzofurans, and any
"extremely hazardous substance" within the meaning set forth in Section 302 of
the Emergency Planning and Community Right-to-know act of 1986, as amended.

        Schedule 6.16 lists each environmental permit relating to the Stations.
Each such permit is transferable to the Buyer and renewable and would not be
subject to materially different terms upon transfer or renewal. There is no
plan, study or effort by any governmental authority or any other person, which
may prevent or hinder the continued use of any real property owned or leased by
the Seller and used in the Stations' business.

        6.17 Conduct of the Business. Upon consummation of the transactions
contemplated by this Agreement, the Buyer will have acquired all of the
properties and rights necessary to operate the Stations in the manner that it
has been operated by Seller heretofore.

        6.18 Benefit Plans. The execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby will not
constitute a violation of, or give rise to any liability under, title I of the
Employee Retirement Income Security Act of 1974, as amended, and the rules and
regulations promulgated thereunder ("ERISA") or section 4975 of the Code. The
Seller maintains no "employee benefit plan" (as defined in section 3 (3) of
ERISA) or any other retirement, profit sharing, stock option, stock bonus or
employee benefit plan.

        6.19 Labor Relations. There is no unfair labor practice complaint pending
or, to the knowledge of the Seller, threatened against the Seller in connection

                                       17

with the Stations nor, to the knowledge of the Seller, any basis therefor. There
is no discrimination charge (relating to sex, age, race, national origin,
handicap or veteran status) pending before any federal, State or foreign agency
or authority nor, to the knowledge of the Seller, any basis therefor.

        6.20 Disclosure. No representation or warranty in this Agreement or in any
schedule to this Agreement, and no statement made by the Seller contained
elsewhere in this Agreement or in any schedule, exhibit, certificate, instrument
or agreement delivered or to be delivered by the Seller to the Buyer pursuant to
this Agreement or in connection with the transactions contemplated hereby
contains or will contain any untrue statement of a material fact or omits or
will omit to state a fact necessary to make the statements contained herein or
therein not misleading. Nothing in any Schedule to this Agreement shall be
deemed adequate to disclose an exception to a representation or warranty made
herein unless such Schedule identifies the exception with particularity and
describes the relevant facts in sufficient detail to put the Buyer on notice as
to the implications of such exception.

        6.21 Access. Buyer and its officers, attorneys, accountants and authorized
representatives are hereby granted the right during normal business hours, to
inspect the assets, properties, books and records of Seller relating to the
Assets, and to consult with the officers, directors, employees, suppliers,
customers, creditors, agents, accountants and attorneys of Seller concerning the
Assets and ownership and operation thereof, as long as such access is not
unreasonably disruptive to its operations. Such inspections may reasonably
include, for example, environmental and other physical inspections of the Assets
review of the books, records of account, tax records, and stock or other
ownership books and records of Seller relating to the Assets, by Buyer's
auditors, and a review of records of corporate proceedings, contracts,

                                       18

trademarks, FCC filings, correspondence and other records containing FCC
authorizations to own and operate the Stations and other business activities and
matters in which Buyer may have an interest in light of the transactions
contemplated by this letter.

        Buyer agrees to maintain all information it learns from such inspections in
confidence and will not disclose such information except to its officers,
directors, employees, attorneys, accountants, creditors, investors or
prospective lenders and their attorneys, and other authorized representatives
unless such information is or becomes public knowledge through no fault of
Buyer. Notwithstanding the above, Seller grants Buyer the right to present, to
whatever degree necessary, information about this proposed transaction in its
SB-2 registration filing with the Securities and Exchange Commission.

        6.22 Non-Competition. Seller agrees not to use or disclose confidential or
proprietary information relating to Buyer, or the Assets and businesses
conducted therewith not to interfere with the business relationships of the
Stations and Buyer, including those with employees, suppliers and customers and
not to compete with the Stations or Buyer in the radio broadcasting business
within the total signal range of the Stations for three years after the Closing
Date.

                                    ARTICLE 7

                     REPRESENTATIONS and WARRANTIES OF BUYER

        Buyer represents, warrants and covenants to Seller as follows:

        7.1 Organization and Standing. On the Closing Date Buyer will be a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada with all requisite corporate power and authority to enter

                                       19

into and perform the terms of this Agreement, subject only to the issuance of
the consent of the FCC with respect thereto.

        7.2 Authorization. Buyer has taken all necessary corporate action to
approve the execution and delivery of this Agreement, and to approve the
performance of this Agreement and the consummation of the transactions
contemplated herein. This Agreement constitutes a valid and binding obligation
of Buyer enforceable in accordance with its terms.

        7.3 Absence of Restrictions. The execution, delivery and consummation of
this Agreement by Buyer shall not, on the Closing Date, conflict with, or result
in breach of, the terms, conditions, or provisions of, or constitute a default
under its Articles of Incorporation or By-Laws or any other agreement,
instrument, law or regulation to which it now is subject or will be subject on
the Closing Date.

        7.4 Qualifications. To the best of Buyers knowledge:(a) Buyer is legally,
technically and financially qualified, and on the Closing Date will be legally,
technically and financially qualified, to become a licensee of the FCC; and (b)
Buyer knows of no reason why the FCC should not approve the application required
by Article 3 hereof. Between the date hereof and the Closing Date, Buyer will
take no action which would adversely affect its qualifications to be the
licensee of the Stations or which would delay FCC approval of the application
required by article 3 hereof.

        7.5 Third Party Consents. Buyer shall cooperate with Seller and will
execute such documents as may reasonably be required in order to assign any
Contract or Air Time Agreement to Buyer pursuant to the terms of this Agreement.

                                       20

                                   ARTICLE 8

                              COVENANTS OF SELLERM

        8.1 Negative. Between the date hereof and the Closing Date, Seller will
not, without prior written consent of Buyer:

        (a) Sell, assign, lease, encumber, mortgage or otherwise transfer or
dispose of any asset or property of the Stations, except in the normal and usual
course of business:

        (b) Cancel, modify or in any way impair any Essential Contracts or, except
in the ordinary course of the Stations' business, any other Contract;

        (c) Enter into any new Air Time Agreement, except for agreements which:

                (1) Are made in the ordinary course for the benefit of the Stations and
substantially in accordance with past practice of the Stations; and

                (2) Have a term not to exceed ninety (90) days.

        (d) Increase the compensation or bonuses or to become payable to any of
Stations' employees, except in accordance with existing employment practices, or
effect any changes in personnel policies or employee benefits except in
accordance with existing employment practices:

        (e) Enter into any new Barter Transactions; or

        (f) Violate any rules, regulations or policies of the FCC or any provisions
of the Communications Act of 1934, as amended, or any provisions of any of the
FCC Licenses, or cause or permit any of the FCC Licenses to lapse, to be
modified in any adverse respect or to become impaired in any manner;

        (g) Take or refrain from taking any action that would cause the face amount
of Seller's liabilities to exceed the fair market value of its assets or render

                                       21

Seller with inadequate working capitol with which to conduct its business or
unable to pay its debts as they mature.

        8.2 Affirmative. Between the date hereof and the Closing Date, Seller will:

        (a) Seller will give to Buyer and its authorized representatives reasonable
access normal business hours to all Records, properties, books, records,
(including, without limitation, bookkeeping, financial and accounting records)
contracts and documents and furnish or cause to be furnished to Buyer or its
authorized representatives all information with respect to the affairs and
business of the Stations as Buyer may reasonably request (it being understood
that the rights of Buyer under this subparagraph shall not be exercised in such
a manner as to interfere unreasonably with the operations of the Stations);

        (b) Prepare and maintain the books, records and financial statements
relating to the Stations consistently with past periods;

        (c) Comply with all laws and regulations to which it or the Stations is
subject;

        (d) Notify Buyer within seven (7) days of Seller's first notice of any
litigation pending or threatened against the Stations and within forty-eight
(48) hours of any damage to or destruction of any assets or property to be sold
hereunder;

        (e) Use its best efforts to procure the consent of any third parties
necessary for the assignment to Buyer of the Contracts Air Time Agreements to be
assigned hereunder;

        (f) Use its best efforts in the preparation, filing and prosecution of the
Application;

        (g) Notify Buyer upon receipt of any administrative or other order relating
to any violation of the FCC's rules and regulations or any other federal, state
or local regulatory or administrative body, including rules relating to the
employment, labor or equal employment opportunity. Seller shall correct any such

                                       22

violations as relate to the operation of the Stations prior to the Closing Date
and shall be responsible for the removal of such, including the payment of any
fines or back pay that may be assessed for any such violation committed by
Seller;

        (h) To the extent reasonably possible, complete all obligations owing by
Seller to advertisers for the sale of airtime on the Stations for anything other
than cash in accordance with past Stations practices;

        (i) Continue to operate the Stations in full compliance with the terms of
its FCC Licenses, in the usual and ordinary course of business, and in
conformity with all applicable laws, ordinances, regulations, rules and orders,
and file with the FCC all applications, reports and other filings and documents
required to be filed with the FCC in connection with the ownership and operation
of the Stations;

                                   ARTICLE 9

                               COVENANTS OF BUYER

        Between the date hereof and the Closing Date Buyer will:

        (a) Notify Seller within seven (7) days of Buyer's first notice of any
litigation pending or threatened against the Stations or any damage to or
destruction of any assets or property to be sold hereunder;

        (b) Cooperate with Seller in its efforts to procure the consent of any
third parties necessary for the assignment to Buyer of any Contract;

        (c) Use its best efforts in the preparation, filing and prosecution of an
Application seeking FCC consent to assignment of the Stations' Licenses to
Buyer;

                                       23

                                   ARTICLE 10

                         CONDITIONS OF CLOSING BY BUYER

        The obligations of Buyer hereunder are, at its option, subject to
compliance with, on or prior to the Closing Date, each of the following
conditions:

        10.1 FCC Consent. The FCC shall have granted its consent to the transaction
contemplated hereunder by granting the Application without imposing any
conditions on grant, which are materially adverse to Buyer or the Stations, and
such grant shall have become a Final Order.

        10.2 Representations and Warranties. Seller's representations and
warranties shall be true and correct in all material respects on and as of the
Closing Date as though such representations and warranties were made at and as
of such time.

        10.3 Compliance With Terms. Seller shall have performed and complied with
terms, covenants and conditions required by this Agreement to be performed and
complied with by it on or before the Closing Date.

        10.4 Closing Documents. Seller shall have delivered to Buyer all of the
Closing materials described in Article 12.1 hereof.

        10.5 Barter Transactions. The outstanding Barter Transaction liability with
respect to the Stations as of the Closing Date shall not exceed the sum of Ten
Thousand Dollars ($10,000). All Barter Transactions assumed by Buyer, if any,
shall be sales exclusively of preemptible time on a "run of schedule" basis.

        10.6 FCC Licenses. At the Closing, the FCC Licenses shall be assigned and
transferred to Buyer, shall be valid and existing authorizations in every
respect for the purposes of operating the Stations, issued by the FCC under the
Communications Act of 1934, as amended, for the full license term ending June 1,

                                       24

1998, and shall contain no material adverse modifications of the terms of such
Licenses from the terms as in effect as of the date of the Licenses and
authorizations as set forth on Schedule A hereof. Seller shall not have violated
any rules, regulations or policies of the FCC on any provisions of the
Communications Act of 1934, as amended, or any of the provisions of the FCC
Licenses, if, as a result of thereof (i) the Stations shall have suffered or
thereafter may suffer, any material adverse effect, or (ii) there shall have
been any material adverse impact on any of the Licenses.

        10.7 Approval of ARE's SB-2 Registration

Furthermore, the conditions to closing include (i) that ARE's registration
statement on Form SB-2 filed with the SEC shall have become effective and shall
then be in effect, and (ii) that ARE's common stock shall have become authorized
for listing or quotation on a national exchange, the OTC Bulletin Board or
another nationally recognized quotation service.

                                   ARTICLE 11

                        CONDITIONS OF CLOSING OF SELLER

        The obligations of Seller hereunder are, at its option, subject to
compliance with, on or prior to the Closing Date, each of the following
conditions:

        11.1 FCC Consent. The FCC shall have granted its consent to the transaction
completed hereunder by granting the Application without imposing any conditions
on grant that are materially adverse to Buyer or the Stations and such grant
shall have become a Final Order.

                                       25

        11.2 Representations and Warranties. Buyer's representations and warranties
shall be true and correct on and as of the Closing Date as though such
representations and warranties were made at and as of such time.

        11.3 Compliance with Terms. Buyer shall have performed and complied with
the terms, covenants and conditions required by this Agreement to be performed
and complied with by it on or before Closing Date.

        11.4 Closing Documents. Buyer shall have delivered to Seller all of the
Closing materials described in Article 12.2 hereof and the purchase price as
provided in Article 2 hereof.

        11.5 Third-Party Consents. Seller shall have delivered to Buyer any
required third party consents to the assignment of the Essential Contracts.

                                   ARTICLE 12

                               CLOSING DOCUMENTS

        12.1 To Be Delivered By Seller. On the Closing Date Seller shall execute
and/or deliver or cause to be delivered to Buyer:

        (a) A good sufficient bill of sale, or other instruments of assignment,
transfer and conveyance for all of the Personal Property and intangible personal
property to be transferred to Buyer hereunder, including the Licenses, free and
clear of any lien, mortgage, charge, or encumbrance whatsoever.

        (b) The Contracts and Air Time Agreements to be assigned to Buyer
hereunder, with assignments thereof.

        (c) Copies of all third party consents or approvals that may be required
under any provision hereof.

                                       26

        (d) A list of all Agreements for the sale for cash of broadcast time on the
Stations in effect on the Closing Date.

        (e) A certificate of Seller's principals or other duly authorized person
certifying to the fulfillment of the conditions set forth in Articles 10.2 and
10.3 hereof.

        (f) Certified resolution of Seller as may be required under applicable law,
authorizing the transactions provided for in this Agreement.

        (g) A written opinion from both local and FCC counsels for the Seller,
dated as of the Closing Date, addressed to the Buyer, and reasonably
satisfactory to the Buyer and its counsel in form and substance to the effect
that the Seller is a sole proprietorship validly existing and in good standing
with the Secretary of the State of Texas; the Seller has the corporate power and
authority to own and lease its properties and to conduct its business as
presently conducted, to execute and deliver this Agreement and to carry out and
perform the transactions contemplated hereby; this Agreement has been duly
authorized, executed and delivered by Seller, and is a valid legally binding
obligation of the Seller, enforceable in accordance with its terms, subject to
laws of general application affecting equitable relief or creditors rights and
remedies; that, after due inquiry, to the best of such counsel's knowledge,
neither the execution and delivery of this and provisions thereof by the Seller
will result in a breach by the Seller of the terms, conditions or provisions of
any judgment, order, injunction, decree, agreement or instrument to which it or
by which it may be bound or constitute a default thereunder, or result in the
creation or imposition of any lien, charge, restriction or encumbrance of any
nature whatsoever, upon, or give others any interest or rights including
termination or cancellation rights in, or with respect to, any of the Purchased
Assets; that, after diligent , such counsel does not know of any litigation,

                                       27

proceeding or governmental investigation or labor dispute or labor trouble
pending or threatened against or relating to the Stations or to the Seller;
except as disclosed in the Agreement, no consent, approval or authorization of,
or registration, qualification or filing with any governmental agency or
authority is required for the execution and delivery of the Agreement or for the
consummation by the Seller of the transactions contemplated in the Agreement;
and the instruments executed and delivered by the Seller at the Closing
effectively vest in the Buyer of all the right, title, and interest of the
Seller in the Purchased Assets. In providing such opinion(s), counsel may rely
upon representations of Seller's officers as to issues of fact.

        12.2 To Be Delivered By Buyer. On the Closing Date Buyer shall execute
and/or deliver or cause to be delivered to Seller:

        (a) Certified resolution of Buyer's Board of Directors and such other
corporate authorizations as may be required under applicable law, authorizing
the transactions provided for this Agreement.

        (b) Payment of the purchase price including, if applicable, Article 2
hereof.

        (c) An agreement, in form reasonably satisfactory to Seller, agreeing to
assume and be bound by the Contracts to be assigned under this Agreement.

        (d) A Certificate of Buyer's President or other duly authorized officer
certifying to the fulfillment of the conditions set forth in Articles 11.2 and
11.3 hereof.

        (e) A written opinion of local counsel for Dated as of the Closing Date,
addressed to the Seller, reasonably satisfactory to the Seller and its counsel
in form and substance to the effect that the corporate existence and good
standing of the Buyer is as stated herein; that this Agreement has been duly
authorized, executed and delivered by the Buyer, and is a valid and legally

                                       28

binding obligation of the Buyer, enforceable in accordance with its terms
subject to laws of general application affecting equitable relief or creditors
rights and remedies; that the Buyer has taken all corporate action necessary to
authorize the performance of all obligations imposed upon it by this Agreement;
that, after due inquiry, to the best of such counsel's knowledge, neither the
execution and delivery of this Agreement, nor compliance with the terms and
provisions hereof and thereof by the Buyer will result in a breach by the Buyer
of the terms, conditions or provisions of any judgment, order, injunction,
decree, agreement or instrument to which it or by which it may be bound or
constitute a default thereunder. In providing such opinion(s), counsel may rely
upon representations of Buyer's officers as to issues of fact.

                                   ARTICLE 13

                             CLOSING DATE AND PLACE

        The Closing shall occur, on a date (the "Closing Date") designated by the
Buyer, but within ten (10) days after the Commission's consent to assignment of
the FCC Licenses to Buyer has become a Final Order, unless other mutually agreed
to by both Seller and Buyer. The Closing shall be held at such place as the
parties shall mutually agree or, failing such agreement, at the office of
Buyer's attorney. Buyer may, at its option, waive the requirement that the FCC's
consent has become a Final Order.

                                   ARTICLE 14

                               TAXES AND EXPENSES

        All transfer taxes, if any, payable or asserted to be payable by reason of
the Purchased Assets shall be paid by Seller, except that Buyer shall pay any
sales or use tax imposed on the transfer of the Personal Property. Each party

                                       29

shall bear the expenses incurred by it in connection with the preparation,
execution and consummation of this Agreement and the prosecution of the FCC
application contemplated by this Agreement. All applicable FCC fees shall be
paid equally by the parties.

                                   ARTICLE 15

                                  RISK OF LOSS

        The risk of any loss, damage or destruction to any of the Purchased Assets
from fire or other casualty or cause shall be borne by the Seller at all times
prior to the Closing Date. Upon the occurrence of any loss or damage to any of
the Stations' assets to be transferred hereunder as a result of fire, casualty
or other causes prior to Closing, Seller shall notify Buyer of same in writing
as soon as practicable starting with particularity the extent of such loss or
damage incurred, the cause thereof if known and the extent to which restoration,
replacement and repair of the Purchased Assets lost or destroyed will be
reimbursed under any insurance policy with respect thereto. Subject to the
provisions hereof, Buyer shall have the option in the event the loss or damage
exceeds Fifty Thousand Dollars ($50,000) and the property cannot be
substantially repaired or restored before the Closing Date, exercisable within
ten (10) days after receipt of such notice from Seller to:

        (i) Terminate this Agreement, in which case the Deposit shall be returned
to Buyer,

        (ii) Postpone the Closing until such time as the property has completely
been repaired, replaced or restored, unless the same cannot be reasonably
effected within five (5) months of notification, or

        (iii) Elect to consummate the Closing and accept the property in its "then"
condition, in which event Seller shall assign all rights under any insurance
claims covering the loss and pay over (as part of the Purchased Assets) any

                                       30

proceeds under any such insurance policy theretofore received by Seller with
respect thereto. In the event Buyer elects to postpone the Closing Date as
provided in subparagraph (ii) above, the parties hereto will cooperate and
extend the time during which this Agreement must be closed as specified in the
consent of the FCC referred to in Article 3 hereof.

        If any event occurs that prevents the broadcast transmissions of the
Stations with full licensed power and antenna height as described in the FCC
Licenses and in the manner in which the Stations has heretofore been operating,
and such facilities are not restored so that operation is resumed with full
licensed power and antenna height as described in the Licenses within fifteen
(15) days of such event, or, in the case of more than one event, the aggregate
number of days preceding such restorations from all such events exceeds twenty
(20) days, or if the Stations is off the air more than four (4) times for a
period, in each case, exceeding ten (10) hours, Seller shall give prompt written
notice to Buyer, and Buyer shall have the right, by giving written notice to
Seller of its election to do so, to terminate this agreement forthwith without
any further obligation hereunder.

                                   ARTICLE 16

                                INDEMNIFICATION

        16.1 Rights of Buyer. Seller shall indemnify and hold harmless Buyer, its
successors and assigns, from and against:

        (a) Any and all claim, demands, actions, suits, proceedings, damages,
deficiencies, assessments, judgments, costs, liabilities, obligations and
expenses, including reasonable attorney's fees arising from or related to the
operation of the Stations prior to the Closing, any contract, liability or
obligation of Seller not expressly assumed by Buyer, including, without
limitation, any claim, liability or obligation with respect to any employee of

                                       31

the Seller in connection with his or her employment or the termination of such
employment on or prior to the Closing Date or the failure of the Buyer to
continue such employment;

        (b) Any and all claims, demands, actions, suits, proceedings, damages,
deficiencies, assessments, judgments, costs, liabilities, obligations and
expenses, including reasonable attorney's fees incurred by Buyer as a result of
any misrepresentation, breach of warranty or covenant, or nonfulfillment of any
agreement on the part of Seller under this Agreement, or from any
misrepresentation in any omission from any certificate or other instrument
required to be furnished to Buyer pursuant to this Agreement or in any
connection with any of the transactions contemplated herein; and

        (c) Any and all claims, demands, actions, suits, proceedings, damages,
deficiencies, assessments, judgments, costs, liabilities, obligations and
expenses, including reasonable attorney's fees incurred by Buyer as a result of
Seller's failure or refusal to discharge, satisfy, compromise or defend any
claim included within the foregoing provisions of this Article 16.1 and Article
21.

        16.2 Rights of Seller. Buyer shall indemnify and hold harmless Seller, its
successors and assigns, from and against:

        A) Any and all claims, liabilities, and obligations arising from or related
to the operation of the Stations from and after the Closing;

        B) Any and all damage or deficiency resulting from any misrepresentations,
breach of warranty or covenant, or nonfulfillment of any agreement on the part
of Buyer under this Agreement, or from any certificate or other instrument
required to be furnished to Seller pursuant to this Agreement or in connection
with any of the transactions contemplated herein; and

                                       32

        (C) Any and all actions, suits, proceedings, damages, assessments,
judgments, costs, liabilities and expenses, including reasonable attorneys' fees
incurred by Seller as a result of Buyer's failure or refusal to discharge,
satisfy, compromise or defend any claim included within the foregoing provisions
of this Article 16.2.

                                   ARTICLE 17

                              CONTROL OF STATIONS

        Between the date of this Agreement and the Closing Date, Buyer shall not
directly or indirectly control, supervise, or direct, or attempt to control,
supervise, or direct the operations of the Stations; such operations, including
control and supervision of all Stations programming, personnel and finances,
shall be the sole responsibility of Seller.

                                   ARTICLE 18

                          SURVIVAL OF REPRESENTATIONS

        Subject to the provisions of Article 16 hereof, the representations,
warranties, covenants and agreements of Buyer and Seller contained herein shall
be binding upon the successors and assigns of Buyer and Seller and shall survive
the Closing for a period of one year from the date thereof, except that (i) with
respect to those Claims as to which a thirty-seven (37) month notice period is
applicable (as provided in Article 16), such representations, warranties,
covenants and agreements of Seller shall survive the Closing for a period of
three (3) years from the Closing Date and (ii) with respect to any Claim
relating to any income, franchise, sales or other tax, such representations,
warranties, covenants and agreements of Seller shall survive the Closing until
thirty (30) days after the expiration of any period during which any such tax
may be assessed.

                                       33

                                   ARTICLE 19

                              SPECIFIC PERFORMANCE

        Seller recognizes that in the event it should refuse to sell the Stations
in accordance with the provisions of this Agreement, money damages will not be
adequate. In such event, if Buyer is not itself in default, then Buyer shall
have the right to specifically enforce this Agreement as the sole and exclusive
remedy for Seller's default.

                                   ARTICLE 20

                               LIQUIDATED DAMAGES

        If the purchase and sale is terminated because of a willful breach by
Buyer, including, but not limited to the failure of Buyer to deliver the
Purchase Price to Seller at the Closing, and provided that the Seller is not in
default. The entire Deposit shall be paid to Seller as liquidated damages as the
sole and exclusive remedy for Buyer's default.

                                   ARTICLE 21

                                   BULK SALES

        The parties hereto waive compliance with the provisions of any bulk sales
law applicable to the transaction contemplated herein; provided, however, that
any loss, liability, obligation or cost suffered by Buyer as a result of a
failure to comply therewith shall be borne by Seller and Seller will indemnify
and hold Buyer harmless against any cost or expense incurred in connection with
such failure.

                                       34

                                   ARTICLE 22

                          ALLOCATION OF PURCHASE PRICE

        The purchase price shall be allocated between the categories "Personal
Property" and "Intangibles" in a manner satisfactory to both Seller and Buyer.
This allocation will be established on or before the Closing date.

                                   ARTICLE 23

                             BENEFIT AND ASSIGNMENT

        This agreement shall be binding upon and inure to the benefit of the
parties hereto, their heirs, successors and assigns. Nevertheless, neither party
shall assign its rights or obligations under this Agreement without the written
consent of the other.

                                   ARTICLE 24

                                    NOTICES

        All notices, requests, demands and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given if delivered personally or mailed by any form of mail or courier
service requiring a signed receipt from the addressee or his agent, postage
prepaid, addressed to the following:

        If to the Seller, to:
        Mr. Ronnie Witcher and Mrs. Debbie Witcher
        KCYL AM and KACQ FM
        505 North Key Avenue
        Lampasas, Texas 76550

        With copies (which shall not constitute notice) to:

        Robert Miller, Esquire
        Gardere Wynn Sewell, LLP

                                       35

        1601 Elm Street
        Dallas, TX 75201

        If to the Buyer, to:
        Dain L. Schult, President
        American Radio Empire, Inc.,
        13210 Kerrville Folkway, Building G
        Austin, Texas 78729-7522

        With a copy (which shall not constitute notice) to:

        James L. Oyster, Esquire
        108 Oyster Lane
        Castleton, VA 22716-9720

        Thomas P. McNamara, Esquire
        2909 Bay to Bay Blvd., Suite 309
        Tampa, Florida 33629

                                   ARTICLE 25

                                ENTIRE AGREEMENT

        This Agreement contains the entire understanding of the parties with
respect to the subject matter hereof. For information purposes, a copy of this
executed Agreement will be sent to both the FCC and the SEC in advance of Seller
and Buyer attaching any and all exhibits or schedules mentioned in various
clauses of this Agreement. At the point in time when Seller and Buyer are ready
to proceed with this proposed transaction and file the Form 314 with the FCC,
all necessary attachments and exhibits will be included.

        This Agreement shall not be modified except by a written instrument signed
by the party to be charged.

                                       36

                                   ARTICLE 26

                                    HEADINGS

        The headings of the paragraphs of this Agreement are inserted as a matter
of convenience and for references purposes only, and in no way define, limit or
describe the scope of this Agreement or the intent of any paragraph hereof. The
use of any gender herein shall include the other genders and the use of the
singular shall, where appropriate, include the plural.

                                   ARTICLE 27

                                  COUNTERPARTS

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

                                   ARTICLE 28

                                 LAW GOVERNING

        This Agreement shall be constructed and governed in accordance with the
laws of Texas.

                                   ARTICLE 29

                         COVENANT OF FURTHER ASSURANCES

        After the Closing, Seller and Buyer shall, upon the request of the other,
take such other action, and execute and deliver to the other such additional
instruments, as may be reasonably necessary to assure, complete, and evidence
the full and effective implementation and consummation of the transaction
contemplated by this Agreement.

                                       37

                                   ARTICLE 30

                                     BROKER

        Buyer and Seller each represent to the other that the sole broker, finder,
or consultant involved in the negotiations leading to the execution of this
Agreement is Jack Riley of Riley Reps. Buyer will pay Riley Reps' commission.
Half of that commission will be paid at Closing, in cash, ($20,000) and the
other half will be in the form of ARE restricted common stock distributed after
Closing with the same exact terms as agreed to by the Seller. Seller and Buyer
shall hold each other harmless from any claim for a fee by any other broker or
finder who claims to have dealt with that party.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized officers as of October 24, 2003.

SELLER
BY:/s/Ronnie Witcher

Ronnie Witcher, Principal and License holder for KCYL AM

BY:/s/Debbie Witcher

Debbie Witcher, Principal and License holder for KACQ FM

BUYER

BY:/s/Dain L. Schult

Dain L. Schult, President, American Radio Empire, Inc.

                                       38

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