Document:

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                                                                   Exhibit 10.11

                            ASSET PURCHASE AGREEMENT

                            Dated as of May 11, 2000

                                  by and among

                             NextMedia Group, Inc.,

                          AJ Indoor Advertising, Inc.,

                                       and

                          AJ Indoor International, Inc.
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                                TABLE OF CONTENTS

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Article I.        PURCHASE OF ASSETS............................................................1

         1.1.     Purchase and Sale of Assets...................................................1

                  1.1.1.   Contract Rights......................................................1

                  1.1.2.   Fixed Assets and Supplies............................................1

                  1.1.3.   Tangible Personal Property...........................................1

                  1.1.4.   Manufacturers' or Vendors' Warranties................................2

                  1.1.5.   Intellectual Property................................................2

                  1.1.6.   Real Property Leases.................................................2

                  1.1.7.   Governmental Licenses, Permits and Approvals.........................2

                  1.1.8.   Books and Records....................................................2

                  1.1.9.   Sellers' Names.......................................................2

                  1.1.10.  Accounts Receivable..................................................2

                  1.1.11.  Prepaid Items........................................................2

                  1.1.12.  Miscellaneous Assets.................................................2

         1.2.     Excluded Assets...............................................................3

                  1.2.1.   Cash.................................................................3

                  1.2.2.   Corporate Documents..................................................3

                  1.2.3.   Employee Benefit Plans...............................................3

                  1.2.4.   Other Excluded Assets................................................3

         1.3.     Nonassignable Contracts and Permits...........................................3

                  1.3.1.   Nonassignability.....................................................3

                  1.3.2.   Sellers to Use Best Efforts..........................................3

                  1.3.3.   If Waivers or Consents Cannot Be Obtained............................3

Article II.       ASSUMPTION OF LIABILITIES.....................................................4

         2.1.     Assumed Liabilities...........................................................4

         2.2.     Retained Liabilities..........................................................4

Article III.      PURCHASE PRICE; ADJUSTMENTS...................................................5

         3.1.     Purchase Price................................................................5

         3.2.     June EBITDA Adjustment........................................................6

         3.3.     Calendar 2000 EBITDA Adjustment...............................................7
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         3.4.     Allocation of Purchase Price..................................................8

Article IV.       THE CLOSING...................................................................8

         4.1.     Date of Closing...............................................................8

Article V.        REPRESENTATIONS AND WARRANTIES................................................8

         5.1.     Representations and Warranties of AJ Indoor...................................8

                  5.1.1.   Organization and Good Standing.......................................8

                  5.1.2.   Authorization of Agreement; Binding Obligation.......................8

                  5.1.3.   No Restrictions Against Sale of the Assets; Required Consents........9

                  5.1.4.   No Third Party Options...............................................9

                  5.1.5.   Fixed Assets.........................................................9

                  5.1.6.   Books and Records....................................................9

                  5.1.7.   Contracts and Commitments............................................9

                  5.1.8.   Title to Assets.....................................................10

                  5.1.9.   Intellectual Property...............................................10

                  5.1.10.  Condition of Assets.................................................10

                  5.1.11.  Leased Real Property................................................10

                  5.1.12.  Litigation; Decrees.................................................11

                  5.1.13.  Compliance With Law; Permits........................................11

                  5.1.14.  Taxes...............................................................11

                  5.1.15.  Commissions or Finders Fees.........................................12

                  5.1.16.  Conduct of Business; Certain Actions................................12

                  5.1.17.  Personal Guarantees.................................................12

                  5.1.18.  Top Ten Customers...................................................13

                  5.1.19.  Disclosure..........................................................13

         5.2.     Representations and Warranties of International..............................13

                  5.2.1.   Organization and Good Standing......................................13

                  5.2.2.   Authorization of Agreement; Binding Obligation......................13

                  5.2.3.   No Restrictions Against Sale of the Assets; Required Consents.......13

                  5.2.4.   No Third Party Options..............................................14
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                  5.2.5.   Fixed Assets........................................................14

                  5.2.6.   Books and Records...................................................14

                  5.2.7.   Contracts and Commitments...........................................14

                  5.2.8.   Title to Assets.....................................................14

                  5.2.9.   Intellectual Property...............................................14

                  5.2.10.  Condition of Assets.................................................15

                  5.2.11.  Leased Real Property................................................15

                  5.2.12.  Litigation; Decrees.................................................15

                  5.2.13.  Compliance With Law; Permits........................................15

                  5.2.14.  Taxes...............................................................16

                  5.2.15.  Commissions or Finders Fees.........................................16

                  5.2.16.  Conduct of Business; Certain Actions................................17

                  5.2.17.  Personal Guarantees.................................................17

                  5.2.18.  Disclosure..........................................................17

         5.3.     Representations and Warranties of Purchaser..................................17

                  5.3.1.   Organization and Good Standing......................................17

                  5.3.2.   Authorization and Effect of Agreement...............................18

                  5.3.3.   No Restrictions Against Purchase of the Assets......................18

Article VI.       PRE-CLOSING COVENANTS........................................................18

         6.1.     Access to Information........................................................18

         6.2.     Conduct of Business..........................................................18

         6.3.     Notification.................................................................19

         6.4.     Required Consents; Cooperation...............................................20

         6.5.     No Inconsistent Action.......................................................20

         6.6.     Satisfaction of Conditions...................................................20

         6.7.     Confidentiality..............................................................20

         6.8.     Publicity....................................................................20

         6.9.     Acquisition Proposals........................................................21

         6.10.    Release of Personal Guarantees...............................................21

Article VII.      CONDITIONS TO CLOSING........................................................21
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         7.1.     Conditions Precedent to Obligations of Purchaser.............................21

                  7.1.1.   Representations, Warranties and Covenants...........................21

                  7.1.2.   Closing Documents...................................................21

                  7.1.3.   Governmental Consents or Approvals..................................22

                  7.1.4.   No Adverse Proceedings..............................................22

                  7.1.5.   Third Party Consents................................................22

                  7.1.6.   Key Employee Agreements.............................................22

                  7.1.7.   No Liens............................................................22

                  7.1.8.   Material Adverse Change.............................................22

                  7.1.9.   Security for Indemnification Obligations of Sellers.................22

                  7.1.10.  Investment Side Letter..............................................22

         7.2.     Conditions Precedent to Obligations of Sellers...............................23

                  7.2.1.   No Material Misrepresentation or Breach.............................23

                  7.2.2.   Closing Documents...................................................23

                  7.2.3.   Governmental Consents or Approvals..................................23

                  7.2.4.   No Adverse Proceedings..............................................23

                  7.2.5.   Closing Price.......................................................23

                  7.2.6.   Financial Change....................................................23

                  7.2.7.   Letter of Credit....................................................23

Article VIII.     DOCUMENTS TO BE DELIVERED AT THE CLOSING.....................................24

         8.1.     Documents to be Delivered by Sellers.........................................24

                  8.1.1.   Transfer Documents..................................................24

                  8.1.2.   Resolutions.........................................................24

                  8.1.3.   Officer's Certificate...............................................24

                  8.1.4.   Good Standing Certificates..........................................24

                  8.1.5.   Purchaser Letter of Credit Side Letter..............................24

                  8.1.6.   Seller Letter of Credit Side Letter.................................24

                  8.1.7.   Other Documents.....................................................24

         8.2.     Documents to be Delivered by Purchaser.......................................24

                  8.2.1.   Purchase Price......................................................24
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                  8.2.2.   Certified Resolutions...............................................24

                  8.2.3.   Officer's Certificate...............................................25

                  8.2.4.   Good Standing Certificates..........................................25

                  8.2.5.   Key Employment Agreements...........................................25

                  8.2.6.   Assumption Agreement................................................25

                  8.2.7.   Purchaser Letter of Credit Side Letter..............................25

                  8.2.8.   Seller Letter of Credit Side Letter.................................25

                  8.2.9.   Other Documents.....................................................25

Article IX.       POST-CLOSING COVENANTS.......................................................25

         9.1.     Employee Benefits............................................................25

         9.2.     Non-Solicitation.............................................................25

         9.3.     Discharge of Business Obligations............................................26

         9.4.     Maintenance of Books and Records.............................................26

         9.5.     Payments Received............................................................26

         9.6.     UCC Matters..................................................................27

         9.7.     Covenant Not to Compete; Confidentiality.....................................27

         9.8.     Certain Tax Matters..........................................................27

         9.9.     Insurance....................................................................28

         9.10.    Operation of Business........................................................28

         9.11.    Transfer of Assets...........................................................29

         9.12.    Working Capital Amount.......................................................29

         9.13.    Notices and Filings Under Franchise Agreements...............................29

         9.14.    Maintenance of Seller Health Plan............................................29

Article X.        SURVIVAL AND INDEMNIFICATION.................................................30

         10.1.    Survival of Representations, Warranties and Covenants........................30

         10.2.    Limitations on Liability.....................................................30

         10.3.    Indemnification..............................................................30

         10.4.    Defense of Claims............................................................31

Article XI.       TERMINATION..................................................................33

         11.1.    Termination..................................................................33
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Article XII.      MISCELLANEOUS PROVISIONS.....................................................33

         12.1.    Notices......................................................................33

         12.2.    Expenses.....................................................................34

         12.3.    Successors and Assigns.......................................................34

         12.4.    Entire Agreement.............................................................35

         12.5.    Amendments and Supplements...................................................35

         12.6.    Rights of the Parties........................................................35

         12.7.    Further Assurances...........................................................35

         12.8.    Bulk Sales...................................................................35

         12.9.    Transfers....................................................................35

         12.10.   Governing Law................................................................35

         12.11.   Severability.................................................................35

         12.12.   Execution in Counterparts....................................................35

         12.13.   Titles and Headings..........................................................36

         12.14.   Waiver.......................................................................36

         12.15.   Passage of Title and Risk of Loss............................................36

         12.16.   Offset Rights................................................................36

         12.17.   Certain Interpretive Matters and Definitions.................................36
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                            ASSET PURCHASE AGREEMENT

     This ASSET PURCHASE AGREEMENT (this "Agreement") is made and entered into
as of this 11th day of May, 2000, by and among AJ Indoor Advertising, Inc., a
Minnesota corporation ("AJ Indoor"), AJ Indoor International, Inc., a Minnesota
corporation ("International" and, collectively with AJ Indoor, "Sellers") and
NextMedia Group, Inc., a Delaware corporation, or its assignee ("Purchaser").

                                    RECITALS:

     A. AJ Indoor presently operates the leading indoor advertising company in
the United States, placing advertising in restaurants, clubs and sports arenas
throughout the United States and International, a wholly-owned subsidiary of AJ
Indoor, presently operates a leading indoor franchising company (collectively,
the "Business"); and

     B. Sellers desires to sell to Purchaser and Purchaser desires to purchase
from Sellers, the assets, rights and properties of Sellers used or useful in the
operation of the Business, on the terms and subject to the conditions contained
in this Agreement.

     NOW, THEREFORE, the parties hereto agree as follows:

                          ARTICLE I. PURCHASE OF ASSETS

     1.1. Purchase and Sale of Assets. On the terms and subject to the
          ---------------------------
conditions contained herein, at the Closing (as defined herein), Sellers will
sell, transfer, convey, assign and deliver to Purchaser, and Purchaser will
purchase and accept from Sellers, all right, title and interest of Sellers in
and to all rights, properties and assets of Sellers used or useful in connection
with the Business, excluding the Excluded Assets (as hereinafter defined)
wherever located (collectively, the "Assets"), free and clear of all mortgages,
liens, pledges, security interests, charges, claims, restrictions and
encumbrances of any nature whatsoever, subject to the terms and conditions
contained in this Agreement, including, without limitation, all of Sellers'
right, title and interest in and to the rights, properties and assets described
in this Section 1.1:

          1.1.1. Contract Rights. All rights and incidents of interest as of the
                 ---------------
Closing Date in and to all leases, agreements and other contracts and legally
binding contractual rights and obligations relating to the Business
(collectively, the "Contracts"), including, without limitation, such of the
foregoing as are described on Schedule 1.1.1;
                              --------------

          1.1.2. Fixed Assets and Supplies. All raw materials, components,
                 -------------------------
work-in-process, finished products, packaging materials, supplies, spare parts
and samples (collectively, the "Fixed Assets"), wherever located;

          1.1.3. Tangible Personal Property. All owned or leased machinery and
                 --------------------------
equipment, tools, furniture, and all other tangible personal property, wherever
located, including, without limitation, the tangible personal property listed on
Schedule 1.1.3 (collectively, the "Tangible Personal Property");
--------------
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          1.1.4. Manufacturers' or Vendors' Warranties. Any rights under any
                 -------------------------------------
manufacturers' or vendors' warranties relating to items included in the Assets,
and all similar rights against third parties relating to items included in the
Assets;

          1.1.5. Intellectual Property. All of Sellers' right, title and
                 ---------------------
interest in and to all domestic and foreign letters patent, patents, patent
applications, patent licenses, software licenses and know-how licenses, trade
names, trademarks, registered copyrights, service marks, trademark registrations
and applications, service mark registrations and applications, copyright
registrations and applications and domain names and URL addresses owned or used
by Sellers in the operation of the Business and all trade secrets, technical
knowledge, know-how and other confidential proprietary information and related
ownership, use and other rights of Sellers, including, but not limited to, those
listed or described on Schedule 1.1.5 (collectively, the "Intellectual
                       --------------
Property");

          1.1.6. Real Property Leases. The rights and incidents of interest of
                 --------------------
Sellers in and to all real property leases (the "Real Property Leases") relating
to the operation of the Business, including, but not limited to, those listed or
described on Schedule 1.1.6, and all of Sellers' rights as of the Closing in all
             --------------
of the structures, fixtures and improvements located thereon (the "Leased Real
Property");

          1.1.7. Governmental Licenses, Permits and Approvals. Any rights and
                 --------------------------------------------
incidents of interest of Sellers in and to any licenses, permits, authorizations
and approvals (collectively, the "Permits") issued to Sellers by any
Governmental Entity (as defined herein) in connection with the operation of the
Business, including, without limitation, such of the foregoing as are listed in
Schedule 1.1.7;
--------------

          1.1.8. Books and Records. Copies of all of the books and records of
                 -----------------
Sellers relating to the operation of the Business and all files and documents
(including credit information) relating to customers and vendors of the
Business;

          1.1.9. Sellers' Names. All of Sellers' rights to the names AJ Indoor
                 --------------
Advertising, Inc. and AJ Indoor International, Inc.; and

          1.1.10. Accounts Receivable. All accounts receivable and notes
                  -------------------
receivable arising out of the operation of the Business (collectively, the
"Accounts Receivable"), which are described on Schedule 1.1.10;
                                               ---------------

          1.1.11. Prepaid Items. Any prepaid items, costs or fees relating to
                  -------------
the operation of the Business, which are described on Schedule 1.1.11; and
                                                      ---------------

          1.1.12. Miscellaneous Assets. Except for the Excluded Assets, such
                  --------------------
other rights, properties and assets owned by Sellers, wherever located, that are
listed or described in Schedule 1.1.12.
                       ---------------

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     1.2. Excluded Assets. Notwithstanding anything to the contrary contained in
          ---------------
this Agreement, the following rights, properties and assets (collectively, the
"Excluded Assets") will not be included in the Assets:

          1.2.1. Cash. All cash and cash equivalents in transit, on hand and/or
                 ----
in banks and all marketable securities and other liquid assets ("Cash");

          1.2.2. Corporate Documents. Sellers' minute books, charter documents,
                 -------------------
stock record books and such other books and records as pertain to the
organization, existence or capitalization of Sellers, and duplicate copies of
such records as are necessary to enable Sellers to file their tax returns and
reports, as well as any other records or materials relating to Sellers generally
and not related to the Assets or the operation of the Business.

          1.2.3. Employee Benefit Plans. Except as is otherwise provided herein,
                 ----------------------
any employee plans or pension plans and all other pension, profit sharing, cash
or deferred plans and trusts, and the assets thereof, and any other employee
benefit plan or arrangement and the assets thereof, if any, maintained by
Sellers or any of their Affiliates (as defined in Article XII); and

          1.2.4. Other Excluded Assets. Any right, property or asset which is
                 ---------------------
described on Schedule 1.2.4.
             --------------

     1.3. Nonassignable Contracts and Permits.
          -----------------------------------

          1.3.1. Nonassignability. Without limiting or otherwise affecting the
                 ----------------
rights of Purchaser pursuant to Articles VII or X, to the extent that any
Contract or Permit to be assigned pursuant to the terms of Sections 1.1.1 or
1.1.7 is not capable of being assigned without the consent, approval or waiver
of a third person or entity (including, without limitation, a Governmental
Entity), nothing in this Agreement will constitute an assignment or require the
assignment thereof, except to the extent provided in this Section 1.3.

          1.3.2. Sellers to Use Best Efforts. Notwithstanding anything to the
                 ---------------------------
contrary contained in this Agreement, Sellers will not be obligated to assign to
Purchaser any of their rights and obligations in and to any of the Contracts or
Permits referred to in Section 1.3.1 without first having obtained all of the
consents, approvals and waivers necessary for such assignment; provided,
                                                               --------
however, that Sellers shall use their best efforts to obtain all such consents,
-------
approvals and waivers prior to and, if the Closing occurs, after the Closing
Date (as defined herein).

          1.3.3. If Waivers or Consents Cannot Be Obtained. To the extent that
                 -----------------------------------------
any consents, approvals and waivers referred to in Section 1.3.1 are not
obtained by Sellers, Sellers shall use their best efforts to: (a) provide to
Purchaser the economic and business benefits of any Contract or Permit referred
to in Section 1.3.1 and (b) enforce, at Purchaser's request and for Purchaser's
account, any rights of Sellers arising from any such Contract or Permit
(including, without limitation, the right to elect to terminate such Contract or
Permit in accordance with the terms thereof).

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                      ARTICLE II. ASSUMPTION OF LIABILITIES

     2.1. Assumed Liabilities. As of the Closing, Purchaser will assume, and
          -------------------
thereafter in due course will pay and fully satisfy, the following liabilities
and obligations of Sellers (the "Assumed Liabilities") and no other liabilities
or obligations:

          (i) liabilities arising out of the ownership of the Assets and/or the
     operation of the Business by Purchaser or any other person or entity,
     including, without limitation, liability for personal injury of customers
     or employees, but only to the extent that the event giving rise to such
     liability occurs after the Closing Date;

          (ii) liabilities under the Real Property Leases assumed under this
     Agreement arising solely from and after the Closing Date, but only to the
     extent that the event giving rise to such liability occurs after the
     Closing Date;

          (iii) liabilities under the Contracts, but only to the extent that the
     event giving rise to such liability occurs after the Closing Date;

          (iv) liabilities with respect to the termination of employment of any
     person by Purchaser who becomes an employee of Purchaser after the Closing
     Date; and

          (v) all of the accounts payable and any accrued expenses arising out
     of the operation of the Business as of the Closing Date, a description of
     which is outlined on Schedule 2.1(v).
                          ---------------

     2.2. Retained Liabilities. Notwithstanding anything to the contrary
          --------------------
contained in this Agreement, Purchaser does not assume or agree to pay, satisfy,
discharge or perform, and will not be deemed by virtue of the execution and
delivery of this Agreement or any document delivered at the Closing pursuant to
this Agreement, or as a result of the consummation of the transactions
contemplated by this Agreement, to have assumed, or to have agreed to pay,
satisfy, discharge or perform, any liability, obligation or indebtedness of
Sellers, whether primary or secondary or direct or indirect, other than the
Assumed Liabilities. Sellers will retain and pay, satisfy, discharge and perform
in accordance with the terms thereof, all liabilities and obligations other than
the Assumed Liabilities, including, without limitation, those set forth below
(such liabilities and obligations retained by Sellers being referred to herein
as the "Retained Liabilities"):

          (a) all obligations or liabilities of Sellers or any predecessor or
Affiliate of Sellers which relate to any of the Excluded Assets;

          (b) all obligations or liabilities of Sellers or any predecessor or
Affiliate of Sellers relating to Taxes (as defined herein) with respect to the
operation of the Business, the transfer from Sellers to Purchaser of the Assets,
or otherwise, for all periods, or portions thereof, on or prior to the Closing
Date;

          (c) all obligations or liabilities for any legal, accounting,
investment banking, brokerage or similar fees or expenses incurred by Sellers in
connection with, resulting from, or attributable to the transactions
contemplated by this Agreement;

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          (d) all obligations or liabilities for any borrowed money incurred
with respect to the operation of the Business prior to the Closing Date;

          (e) all liabilities and obligations of Sellers or any predecessor or
Affiliate of Sellers resulting from, caused by or arising out of, directly or
indirectly, the conduct of the Business or the ownership or lease of any of the
Assets or any of the properties or assets previously used in the Business at any
time prior to or on the Closing Date, including, without limitation, such of the
foregoing as constitute, may constitute or are alleged to constitute a tort,
breach of contract or violation or requirement of any domestic or foreign
statute, law, ordinance, rule or regulation ("Law") of any domestic or foreign
court, government, governmental agency, authority, entity or instrumentality
("Governmental Entity"), or which relate to, result in or arise out of the
existence or imposition of any liability or obligation to remediate or
contribute or otherwise pay any amount under or in respect of any environmental,
superfund or other environmental cleanup or remedial Laws, occupational safety
and health Laws or other Laws; and

          (f) all claims for severance, other employee benefits (including,
without limitation, benefits mandated by Law) or other compensation or damages
by or on behalf of any employees (present or former), agents or independent
contractors of Sellers or by or on behalf of any Governmental Entity in respect
of employees (present or former), agents or independent contractors of Sellers
involving any alleged employment loss, violation of any Law or termination of
employment actually or constructively (by operation of Law or pre-existing
contract, including without limitation any liability for severance), all
liabilities and obligations of Sellers or any predecessor or Affiliate of
Sellers with respect to employees (present or former), agents or independent
contractors of Sellers under any employee plan or any pension plan, or in
respect of payments for unemployment compensation or unemployment insurance, all
liabilities and obligations with respect to physical, mental or other health
conditions of employees (present or former), agents or independent contractors
of Sellers existing prior to or at the Closing and all other obligations in
respect of employees (present or former), agents or independent contractors of
Sellers relating to periods of employment ending on or prior to the Closing
Date.

                    ARTICLE III. PURCHASE PRICE; ADJUSTMENTS

     3.1. Purchase Price. The initial purchase price (the "Initial Purchase
          --------------
Price") for the Assets shall be Eleven Million Nine Hundred Thirty Nine Thousand
Five Hundred Twenty Dollars ($11,939,520). The parties have attached hereto as
Exhibit 3.1(a) the mutually agreed upon calculation of the EBITDA (defined
--------------
below) of the Business for the period beginning April 1, 1999 and ending March
31, 2000 which was used to determine the Initial Purchase Price and will be used
by the parties as a guideline to make any EBITDA calculations of the Business in
accordance with this Article III. The parties acknowledge and agree that the
Initial Purchase Price shall be adjusted prior to the Closing Date to include an
amount equal to the amount by which value of the Accounts Receivable and the
prepaid items acquired by Purchaser pursuant to Sections 1.1.10 and 1.1.11
hereof exceeds the value of the liabilities assumed by the Purchaser pursuant to
Section 2.1(v) (the "Working Capital Amount"). The calculation of the Working
Capital Amount shall be attached hereto as Exhibit 3.1(b) prior to the Closing
                                           --------------
of the transactions contemplated hereby. The sum of the Initial Purchase Price
and the Working Capital Amount is hereinafter referred to as the "Purchase
Price." At Closing, Purchaser shall pay to Sellers the

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Purchase Price in cash, which amount shall be paid by Purchaser to Sellers by
wire transfer of immediately available funds to an account or accounts
designated by Sellers.

     3.2. June EBITDA Adjustment. If, and only if, Sellers receive at Closing a
          ----------------------
Purchase Price less than $15,000,000 for the Assets, Sellers may be entitled to
an additional amount based upon the earnings before interest, taxes,
depreciation and amortization (including unamortized lease-up expenses)
("EBITDA") of the Business for the period beginning July 1, 1999 and ending June
30, 2000. As soon as is practicable following June 30, 2000, Purchaser shall
deliver Sellers an income statement (the "Proposed June Statement") prepared by
Purchaser or its representatives in accordance with GAAP, consistently applied,
which reflects the EBITDA of the Business for the period beginning July 1, 1999
and ending June 30, 2000. Sellers, within a reasonable period of time following
receipt of the Proposed June Statement, not to exceed five (5) business days,
shall review the EBITDA calculation contained in the Proposed June Statement. In
connection with Sellers' review of the Proposed June Statement, Purchaser hereby
acknowledges and agrees that it will promptly make available to Sellers such
documents or records relating to Purchaser's EBITDA calculation contained in the
Proposed June Statement as may be required for Sellers to properly understand
such calculation. Following their review of the Proposed June Statement and any
of Purchaser's documents or records relating thereto, Sellers shall deliver to
Purchaser their determination of the EBITDA of the Business for the period
beginning July 1, 1999 and ending June 30, 2000 ("Sellers' June EBITDA
Calculation"). In the event that Sellers' June EBITDA Calculation matches
Purchaser's EBITDA calculation contained in the Proposed June Statement,
Purchaser's EBITDA calculation shall become final and binding on both Purchaser
and Sellers for purposes of determining any additional amount to be paid
pursuant to this Section 3.2 (the "Agreed June EBITDA Amount"). In the event
that Sellers' June EBITDA Calculation differs from the EBITDA calculation
contained in the Proposed June Statement, Purchaser and Sellers, in good faith
and acting reasonably, shall attempt promptly to arrive at a mutually agreeable
figure which represents the EBITDA of the Business for the period beginning July
1, 1999 and ending June 30, 2000, which figure will become the Agreed June
EBITDA Amount. In the event that Purchaser and Sellers cannot mutually agree
upon an EBITDA figure for the Business for the period beginning July 1, 1999 and
ending June 30, 2000 within five (5) business days following Purchaser's receipt
of Sellers' June EBITDA Calculation, Purchaser and Sellers agree that they shall
promptly refer the EBITDA determination for the period beginning July 1, 1999
and ending June 30, 2000 to PricewaterhouseCoopers (the "Accountant"). The
Accountant shall promptly make its determination as to the EBITDA of the
Business for such period, which calculation shall become the Agreed June EBITDA
Amount and which shall be: (i) in writing, (ii) furnished to each of the
Purchaser and Sellers as promptly as practicable, and (iii) conclusive and
binding upon each of the parties. Each of Purchaser and Sellers shall comply
with all requests by the Accountant for information, books, records and similar
items to assist the Accountant in establishing the Agreed June EBITDA Amount.
The fees and expenses of the Accountant shall be shared equally by Purchaser and
Sellers, unless it shall have been determined by a court of competent
jurisdiction that the dispute as to the calculation of EBITDA was caused by the
bad faith of either party, in which case the fees and expenses of the Accountant
shall be borne entirely by the party who has been found to have acted in bad
faith.

     Following the determination of the Agreed June EBITDA Amount, Purchaser
shall multiply the Agreed June EBITDA Amount by eight; the resulting figure is
referred to herein as

                                       6
<PAGE>

the "June Price". In the event that the June Price exceeds the Purchase Price,
Purchaser shall remit to Sellers only that portion of the difference that equals
the difference between the Purchase Price paid at Closing and $15,000,000, and
Sellers shall be entitled to no additional amount. Any amount to be paid by
Purchaser to Sellers pursuant to this Section 3.2 promptly shall be remitted by
Purchaser to Sellers by wire transfer of immediately available funds to an
account designated by Sellers.

     3.3. Calendar 2000 EBITDA Adjustment. If, and only if, the Purchase Price
          -------------------------------
that Sellers have received at Closing, plus any June Payment amount which
Sellers received in accordance with Section 3.2 above, is less than $21,300,000,
Sellers may be entitled to an additional amount based on the EBITDA of the
Business for calendar year 2000, as provided in this Section 3.3. As soon as
practicable following the close of calendar year 2000, Purchaser shall present
Sellers with an income statement (the "2000 EBITDA Statement") which reflects
the EBITDA of the Business for the period beginning January 1, 2000 and ending
December 31, 2000 (the "2000 Calendar EBITDA"). Sellers, within a reasonable
period of time following receipt of the 2000 EBITDA Statement, not to exceed
five (5) business days, shall review the EBITDA calculation contained in the
2000 EBITDA Statement. In connection with Sellers' review of the 2000 EBITDA
Statement, Purchaser hereby acknowledges and agrees that it will promptly make
available to Sellers such documents or records relating to Purchaser's EBITDA
calculation contained in the 2000 EBITDA Statement as may be required for
Sellers to properly understand such calculation. Following its review of the
2000 EBITDA Statement and any of Purchaser's documents or records relating
thereto, Sellers shall deliver to Purchaser their determination of the EBITDA of
the Business for the period beginning January 1, 2000 and ending December 31,
2000 ("Sellers' 2000 EBITDA Calculation"). In the event that Sellers' 2000
EBITDA Calculation matches Purchaser's EBITDA calculation contained in the 2000
EBITDA Statement, Purchaser's EBITDA calculation shall become final and binding
on both Purchaser and Sellers for purposes of determining any additional amount
to be paid pursuant to this Section 3.3 (the "Agreed 2000 Calendar EBITDA"). In
the event that Sellers' 2000 EBITDA Calculation differs from the EBITDA
calculation contained in the 2000 EBITDA Statement, Purchaser and Sellers, in
good faith and acting reasonably, promptly shall attempt to arrive at a mutually
agreeable figure which represents the EBITDA of the Business for the period
beginning January 1, 2000 and ending December 31, 2000, which figure will become
the Agreed 2000 Calendar EBITDA. In the event that Purchaser and Sellers cannot
mutually agree upon an EBITDA figure for the Business for the period beginning
January 1, 2000 and ending December 31, 2000 within five (5) business days
following Purchaser's receipt of Sellers' 2000 EBITDA Calculation, Purchaser and
Sellers agree that they shall promptly refer the EBITDA determination for the
period beginning January 1, 2000 and ending December 31, 2000 to the Accountant.
The Accountant shall promptly make its determination as to the EBITDA of the
Business for such period, which calculation shall become the Agreed 2000
Calendar EBITDA and which shall be: (i) in writing, (ii) furnished to each of
the Purchaser and Sellers as promptly as practicable, and (iii) conclusive and
binding upon each of the parties. Each of Purchaser and Sellers shall comply
with all requests by the Accountant for information, books, records and similar
items to assist the Accountant in establishing the Agreed 2000 Calendar EBITDA.
The fees and expenses of the Accountant shall be shared equally by Purchaser and
Sellers, unless it shall have been determined by a court of competent
jurisdiction that the dispute as to the calculation of EBITDA was caused by the
bad faith of either party, in which case the fees and

                                       7
<PAGE>

expenses of the Accountant shall be borne entirely by the party who has been
found by such court to have acted in bad faith.

     Following the determination of the Agreed 2000 Calendar EBITDA, Purchaser
shall multiply the Agreed 2000 Calendar EBITDA by eight; the resulting figure is
referred to herein as the "2000 Price". In the event that the 2000 Price exceeds
the sum of the Purchase Price and the June Payment, Purchaser shall remit to
Sellers only that portion of the difference that equals the difference between
the Purchase Price paid at Closing plus the June Payment amount and $21,300,000,
and Sellers shall be entitled to no additional amount. Any amount to be paid by
Purchaser to Sellers pursuant to this Section 3.3 promptly shall be remitted by
Purchaser to Sellers by wire transfer of immediately available funds to an
account designated by Sellers.

     3.4. Allocation of Purchase Price. Sellers and Purchaser agree upon the
          ----------------------------
allocation of the Purchase Price for the Assets as set forth on Exhibit 3.3 (the
                                                                -----------
"Allocation"). Purchaser and Sellers agree to prepare and to file all income tax
returns (including, if applicable, Form 8594) in a manner consistent with the
mutually agreed upon Allocation and will not in connection with the filing of
such returns make any allocation which is contrary to any such Allocation.

                             ARTICLE IV. THE CLOSING

     4.1. Date of Closing. The consummation of the purchase and sale of the
          ---------------
Assets contemplated hereby (the "Closing") shall take place on or before May 23,
2000 at the offices of AJ Indoor Advertising, Inc., 3940 Quebec Ave. North, Ste.
203, Minneapolis, Minnesota 55247 (or at such other place as the parties may
designate) or such other date designated by the parties in writing, after each
of the conditions specified in Article VII has been fulfilled (or waived by the
party entitled to waive that condition). The date on which the Closing is
effected is referred to in this Agreement as the "Closing Date."

                    ARTICLE V. REPRESENTATIONS AND WARRANTIES

     5.1. Representations and Warranties of AJ Indoor. AJ Indoor hereby makes
          -------------------------------------------
the following representations and warranties to Purchaser, each of which is true
and correct as of the date hereof and shall be true and correct as of the
Closing Date:

          5.1.1. Organization and Good Standing. AJ Indoor is a corporation
                 ------------------------------
validly existing and in good standing under the laws of the State of Minnesota.
AJ Indoor has the requisite corporate power and authority to own, lease or
otherwise hold the Assets owned, leased or otherwise held by it and to carry on
the Business as presently conducted by it. AJ Indoor is in good standing and
duly qualified to conduct business as a foreign corporation in every state of
the United States in which its ownership or lease of property or conduct of the
Business makes such qualification necessary.

          5.1.2. Authorization of Agreement; Binding Obligation. AJ Indoor has
                 ----------------------------------------------
the requisite corporate power to execute and to deliver this Agreement and to
perform the transactions contemplated hereby. The execution and delivery by AJ
Indoor of this Agreement and the performance by AJ Indoor of the transactions
contemplated hereby to be performed by AJ Indoor shall be duly authorized by all
necessary action on the part of AJ Indoor prior to Closing. This Agreement has
been duly executed and delivered by duly authorized officers of

                                       8
<PAGE>

AJ Indoor and, assuming the due execution and delivery of this Agreement by
International and Purchaser, constitutes a valid and binding obligation of AJ
Indoor enforceable against AJ Indoor in accordance with its terms, except as may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights in general and
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

          5.1.3. No Restrictions Against Sale of the Assets; Required Consents.
                 -------------------------------------------------------------
The execution and delivery of this Agreement by AJ Indoor does not, and the
performance by AJ Indoor of the transactions contemplated hereby to be performed
by AJ Indoor will not: (a) conflict with the articles of incorporation or
by-laws of AJ Indoor, (b) conflict with, or result in any violation of, or
constitute a default (with or without notice or lapse of time, or both) under,
or give rise to a right of termination, cancellation or acceleration of any
obligation or to loss of a benefit under, any contract, permit, order, judgment
or decree to which AJ Indoor is a party or by which any of its properties are
bound, (c) constitute a violation of any law or regulation applicable to AJ
Indoor, or (d) result in the creation of any lien, charge or encumbrance upon
any of the Assets. Except as described on Schedule 5.1.3, no consent, approval,
                                          --------------
order or authorization of, or registration, declaration or filing with, any
Governmental Entity or third party is required to be obtained or made by or with
respect to AJ Indoor in connection with the execution and delivery of this
Agreement by AJ Indoor or the performance by AJ Indoor of the transactions
contemplated hereby.

          5.1.4. No Third Party Options. There are no existing agreements with,
                 ----------------------
options or rights of, or commitments to, any other person to acquire any of the
Assets or any interest therein.

          5.1.5. Fixed Assets. All Fixed Assets of AJ Indoor used in the conduct
                 ------------
of the Business, have been maintained in the ordinary course of the Business,
are of good and merchantable quality, and consist substantially of a quality,
quantity and condition usable, leasable or saleable in the ordinary course of
the Business.

          5.1.6. Books and Records. The books, records and accounts of AJ Indoor
                 -----------------
maintained with respect to the Business accurately and fairly reflect, in
reasonable detail, the transactions and the assets and liabilities of AJ Indoor
with respect to the Business.

          5.1.7. Contracts and Commitments. Except as disclosed on Schedule
                 -------------------------                         --------
5.1.7, each material Contract which comprises a portion of the Assets acquired
-----
by Purchaser is valid and enforceable in accordance with its terms; AJ Indoor
is, and to the best of AJ Indoor's knowledge all other parties thereto are, in
compliance with the provisions thereof; AJ Indoor is not, and to AJ Indoor's
knowledge no other party thereto is, in default in the performance, observance
or fulfillment of any obligation, covenant or condition contained therein; and
no event has occurred which with or without the giving of notice or lapse of
time, or both, would constitute a default thereunder. Furthermore, no such
Contract contains any contractual requirement with which there is a reasonable
likelihood that AJ Indoor, or, to AJ Indoor's knowledge, any other party
thereto, will be unable to comply.

                                       9
<PAGE>

          5.1.8. Title to Assets. Except as listed or described on Schedule
                 ---------------                                   --------
5.1.8, AJ Indoor has, and following the Closing, Purchaser will have, good,
-----
valid and marketable title to the Assets free and clear of all title defects or
objections, mortgages, liens, claims, pledges, or other encumbrances of any
nature whatsoever, including without limitation licenses, leases, chattel or
other mortgages, collateral security arrangements, pledges, title imperfections,
defect or objection liens, security interests, conditional and installment sales
agreements, charges, and other title or interest retention arrangements or
reservations (collectively, "Liens").

          5.1.9. Intellectual Property. Schedule 1.1.5 contains an accurate and
                 ---------------------  --------------
complete list of all Intellectual Property owned or used by AJ Indoor in the
operation of the Business. Except as set forth on Schedule 5.1.9, AJ Indoor owns
                                                  --------------
the entire right, title and interest in and to the Intellectual Property used in
the operation of the Business (including, without limitation, the right to use
and license the same). Except as set forth in Schedule 5.1.9, there are no
                                              --------------
pending, or to the knowledge of AJ Indoor, threatened actions or claims of any
nature affecting the Intellectual Property. Except as set forth on Schedule
                                                                   --------
5.1.9, there is, to the knowledge of AJ Indoor, no reasonable basis upon which
-----
any claim may be asserted against AJ Indoor for infringement or misappropriation
of any domestic or foreign letters patent, patents, patent applications, patent
licenses, software licenses, and know-how licenses, trade names, trademark
registrations and applications, trademarks, service marks, copyrights, copyright
registrations or applications, domain names or URL addresses, trade secrets,
technical knowledge, know-how or other confidential proprietary information. All
letters patent, registrations and certificates issued by any Governmental Entity
relating to any of the Intellectual Property and all licenses and other
agreements pursuant to which AJ Indoor uses any of the Intellectual Property,
are valid and subsisting, have been properly maintained and neither AJ Indoor,
nor to the knowledge of AJ Indoor, any other person, is in default or violation
thereunder.

          5.1.10. Condition of Assets. All of the Assets are in good operating
                  -------------------
condition and repair, subject to normal wear and maintenance, are usable in the
regular and ordinary course of business and conform to all applicable laws,
ordinances, codes, rules and regulations, and Permits relating to their
construction, use and operation. The Assets constitute all of the assets and
rights necessary to operate the Business as currently conducted and as currently
contemplated to be conducted. No person, other than Sellers, owns any equipment
or other tangible assets or properties situated on the premises of AJ Indoor or
necessary to the operation of the Business of Sellers, except for leased items
disclosed herein.

          5.1.11. Leased Real Property.
                  --------------------

          (a) Leased Real Property. Each Real Property Lease is, and at Closing
              --------------------
shall be, in full force and effect and has not been assigned, modified,
supplemented or amended, and, except as disclosed in Schedule 5.1.11, no party
                                                     ---------------
under any Real Property Lease is in default under any of the Real Property
Leases, and no circumstances or state of facts presently exists which, with the
giving of notice or passage of time, or both, would permit any party under any
Real Property Lease to terminate any Real Property Lease.

          (b) No Notices. The property used under the Real Property Leases,
              ----------
complies with all Laws of all Governmental Entities having jurisdiction over
such property, and AJ Indoor has received no notices, oral or written, from any
Governmental Entity, and has no reason to

                                       10
<PAGE>

believe, that such property or any improvements erected or situated thereon, or
the uses conducted thereon or therein, violate any Laws of any Governmental
Entity having jurisdiction over such property.

          5.1.12. Litigation; Decrees. There are no judicial or administrative
                  -------------------
actions, proceedings or investigations pending or, to AJ Indoor' knowledge,
threatened that question the validity of this Agreement or any action taken or
to be taken by AJ Indoor in connection with this Agreement. Except as listed or
described on Schedules 5.1.12 or 5.1.13, there are no: (i) lawsuits, claims,
             ----------------    ------
administrative or other proceedings or investigations relating to the conduct of
the Business pending or, to AJ Indoor' knowledge, threatened by, against or
affecting AJ Indoor or any Affiliate thereof or (ii) judgments, orders or
decrees of any Governmental Entity binding on the AJ Indoor or the Assets.

          5.1.13. Compliance With Law; Permits. AJ Indoor has complied, in all
                  ----------------------------
material respects, with each Law, judgment, order and decree of any Governmental
Entity to which AJ Indoor or its business, operations, assets or properties is
subject and is not currently in violation of any of the foregoing. AJ Indoor
owns, holds, possesses or lawfully uses in the operation of its business all
Permits which are in any manner necessary for it to conduct the Business as now
or previously conducted or for the ownership and use of the Assets, free and
clear of all liens, charges, restrictions and encumbrances and in compliance
with all Laws. AJ Indoor is not in default, nor has it received any notice of
any claim of default, with respect to any such Permits. Except as disclosed on
Schedule 5.1.13, all such Permits are renewable by their terms or in the
---------------
ordinary course of business without the need to comply with any special
qualification procedures or to pay any amounts other than routine filing fees
and none of such Permits will be adversely affected by consummation of the
transactions contemplated hereby.

          5.1.14. Taxes.
                  -----

          (a) All Tax Returns (as defined herein) that are required to be filed
on or before the Closing Date by AJ Indoor have been duly filed on a timely
basis under the statutes, rules or regulations of each applicable jurisdiction.
All such Tax Returns were complete and accurate in all material respects. All
Taxes owed by AJ Indoor have been paid by it, whether or not such Taxes are
disputed. AJ Indoor has not executed or filed with the Internal Revenue Service
or any other taxing authority any agreement extending the period for filing any
Tax Return.

          (b) No claim for assessment or collection of Taxes has been asserted
against AJ Indoor. AJ Indoor is not a party to any pending action, proceeding or
investigation by any Governmental Entity for the assessment or collection of
Taxes nor does AJ Indoor have knowledge of any such threatened action,
proceeding or investigation.

          (c) No waivers of statutes of limitation in respect of any Tax Returns
have been given or requested by AJ Indoor nor has AJ Indoor agreed to any
extension of time with respect to a Tax assessment or deficiency. No claim has
ever been made by a Governmental Entity in a jurisdiction where AJ Indoor does
not currently file Tax Returns that it is or may be subject to taxation by that
jurisdiction nor is AJ Indoor aware that any such assertion of jurisdiction is
threatened. No security interests have been imposed upon or asserted against any

                                       11
<PAGE>

of AJ Indoor's Assets as a result of or in connection with any failure, or
alleged failure, to pay any Tax.

          (d) AJ Indoor has withheld and paid all Taxes required to be withheld
in connection with any amounts paid or owing to any employee, creditor,
independent contractor or other third party.

          (e) For purposes of this Agreement, the terms "Tax" and "Taxes" shall
mean all federal, state, local, or foreign income, payroll, employee
withholding, unemployment insurance, social security, sales, use, service,
service use, leasing, leasing use, excise, franchise, gross receipts, value
added, alternative or add-on minimum, estimated, occupation, real and personal
property, stamp, transfer, workers' compensation, severance, windfall profits,
environmental (including taxes under Section 59A of the Code), or other tax of
the same or of a similar nature, including any interest, penalty, or addition
thereto, whether disputed or not. The term "Tax Return" means any return,
declaration, report, claim for refund, or information return or statement
relating to Taxes or any amendment thereto, and including any Schedule or
attachment thereto.

          5.1.15. Commissions or Finders Fees. Other than to Johnsen, Fretty and
                  ---------------------------
Co. LLC, AJ Indoor has not agreed to pay a commission, finder's fee or similar
payment in connection with this Agreement or any matter related hereto to any
person or entity.

          5.1.16. Conduct of Business; Certain Actions. Except as set forth on
                  ------------------------------------
Schedule 5.1.16 attached hereto, from March 3, 2000 to the date hereof, AJ
---------------
Indoor has, in all material respects, conducted its Business in the ordinary
course and consistent with past practices and has:

          (i) maintained the Assets of the Business in sufficient operating
     condition and repair to enable them to operate in all material respects in
     the manner in which they were being operated;

          (ii) not sold, encumbered or otherwise placed any Lien on any of the
     Assets other than in the ordinary course of business;

          (iii) used its commercially reasonable efforts to retain the services
     of its officers, employees, and independent contractors;

          (iv) used its commercially reasonable efforts to preserve its
     relationships with each of its material lenders, suppliers, customers and
     other third parties having material business dealings with AJ Indoor; and

          (v) recorded all sales and maintained its books of account in
     accordance with GAAP.

          5.1.17. Personal Guarantees. Schedule 5.1.17 describes in detail each
                  -------------------  ---------------
of the personal guarantees that have been made on behalf of Sellers by James
Arabanos, Tony Jacobson and Mark Spaniol in connection with the ownership of the
Assets and the operation of the Business (the "Personal Guarantees"). Other than
the Personal Guarantees described on

                                       12
<PAGE>

Schedule 5.1.17, there are no other personal guarantees that have been made with
---------------
respect to the ownership of the Assets or the operation of the Business.

          5.1.18. Top Ten Customers. Schedule 5.1.18 contains a list of the Top
                  -----------------  ---------------
10 customers of the Business. Each Contract relating to one of the Top 10
customers of the Business will be properly assigned to Purchaser at Closing.

          5.1.19. Disclosure. No representation or warranty by AJ Indoor
                  ----------
contained in this Agreement, and no statement contained in any document, list,
certificate or other instrument furnished or to be furnished by or on behalf of
AJ Indoor or any Affiliate thereof to Purchaser or any of its representatives 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 any
material fact necessary, in light of the circumstances under which it was or
will be made, in order to make the statements herein or therein not misleading
or necessary in order fully and fairly to provide the information required to be
provided in any such document, list, certificate or other instrument. AJ Indoor
has not failed to disclose to Purchaser any fact which would reasonably be
determined to have a material adverse effect on the business, financial
condition, results of operations or prospects of the Business, or which is
otherwise material to the Business.

     5.2. Representations and Warranties of International. International hereby
          -----------------------------------------------
makes the following representations and warranties to Purchaser, each of which
is true and correct as of the date hereof and shall be true and correct as of
the Closing Date:

          5.2.1. Organization and Good Standing. International is a corporation
                 ------------------------------
validly existing and in good standing under the laws of the State of Minnesota.
International has the requisite corporate power and authority to own, lease or
otherwise hold the Assets owned, leased or otherwise held by it and to carry on
the Business as presently conducted by it. International is in good standing and
duly qualified to conduct business as a foreign corporation in every state of
the United States in which its ownership or lease of property or conduct of the
Business makes such qualification necessary.

          5.2.2. Authorization of Agreement; Binding Obligation. International
                 ----------------------------------------------
has the requisite corporate power to execute and to deliver this Agreement and
to perform the transactions contemplated hereby. The execution and delivery by
International of this Agreement and the performance by International of the
transactions contemplated hereby to be performed by International shall be duly
authorized by all necessary action on the part of International prior to
Closing. This Agreement has been duly executed and delivered by duly authorized
officers of International and, assuming the due execution and delivery of this
Agreement by International and Purchaser, constitutes a valid and binding
obligation of International enforceable against International in accordance with
its terms, except as may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors' rights
in general and subject to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

          5.2.3. No Restrictions Against Sale of the Assets; Required Consents.
                 -------------------------------------------------------------
The execution and delivery of this Agreement by International does not, and the
performance by International of the transactions contemplated hereby to be
performed by International will not:

                                       13
<PAGE>

(a) conflict with the articles of incorporation or by-laws of International, (b)
conflict with, or result in any violation of, or constitute a default (with or
without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a
benefit under, any contract, permit, order, judgment or decree to which
International is a party or by which any of its properties are bound, (c)
constitute a violation of any law or regulation applicable to International, or
(d) result in the creation of any lien, charge or encumbrance upon any of the
Assets. Except as described on Schedule 5.2.3, no consent, approval, order or
                               --------------
authorization of, or registration, declaration or filing with, any Governmental
Entity is required to be obtained or made by or with respect to International in
connection with the execution and delivery of this Agreement by International or
the performance by International of the transactions contemplated hereby.

          5.2.4. No Third Party Options. There are no existing agreements with,
                 ----------------------
options or rights of, or commitments to, any other person to acquire any of the
Assets or any interest therein.

          5.2.5. Fixed Assets. All Fixed Assets of International used in the
                 ------------
conduct of the Business, have been maintained in the ordinary course of the
Business, are of good and merchantable quality, and consist substantially of a
quality, quantity and condition usable, leasable or saleable in the ordinary
course of the Business.

          5.2.6. Books and Records. The books, records and accounts of
                 -----------------
International maintained with respect to the Business accurately and fairly
reflect, in reasonable detail, the transactions and the assets and liabilities
of International with respect to the Business.

          5.2.7. Contracts and Commitments. Except as disclosed on Schedule
                 -------------------------                         --------
5.2.7, each material Contract which comprises a portion of the Assets acquired
-----
by Purchaser is valid and enforceable in accordance with its terms;
International is, and to the best of International's knowledge all other parties
thereto are, in compliance with the provisions thereof; International is not,
and to International's knowledge no other party thereto is, in default in the
performance, observance or fulfillment of any obligation, covenant or condition
contained therein; and no event has occurred which with or without the giving of
notice or lapse of time, or both, would constitute a default thereunder.
Furthermore, no such Contract contains any contractual requirement with which
there is a reasonable likelihood that International, or, to International's
knowledge, any other party thereto, will be unable to comply.

          5.2.8. Title to Assets. Except as listed or described on Schedule
                 ---------------                                   --------
5.2.8, International has, and following the Closing, Purchaser will have, good,
-----
valid and marketable title to the Assets free and clear of all Liens.

          5.2.9. Intellectual Property. Schedule 1.1.5 contains an accurate and
                 ---------------------  --------------
complete list of all Intellectual Property owned or used by International in the
operation of the Business. Except as set forth on Schedule 5.2.9, International
                                                  --------------
owns the entire right, title and interest in and to the Intellectual Property
used in the operation of the Business (including, without limitation, the right
to use and license the same). Except as set forth in Schedule 5.2.9, there are
                                                     --------------
no pending, or to the knowledge of International, threatened actions or claims
of any nature affecting the Intellectual Property. Except as set forth on
Schedule 5.2.9, there is, to the
--------------

                                       14
<PAGE>

knowledge of International, no reasonable basis upon which any claim may be
asserted against International for infringement or misappropriation of any
domestic or foreign letters patent, patents, patent applications, patent
licenses, software licenses, and know-how licenses, trade names, trademark
registrations and applications, trademarks, service marks, copyrights, copyright
registrations or applications, trade secrets, technical knowledge, know-how or
other confidential proprietary information. All letters patent, registrations
and certificates issued by any Governmental Entity relating to any of the
Intellectual Property and all licenses and other agreements pursuant to which
International uses any of the Intellectual Property, are valid and subsisting,
have been properly maintained and neither International, nor to the knowledge of
International, any other person, is in default or violation thereunder.

          5.2.10. Condition of Assets. All of the Assets are in good operating
                  -------------------
condition and repair, subject to normal wear and maintenance, are usable in the
regular and ordinary course of business and conform to all applicable laws,
ordinances, codes, rules and regulations, and Permits relating to their
construction, use and operation. The Assets constitute all of the assets and
rights necessary to operate the Business as currently conducted and as currently
contemplated to be conducted. No person, other than Sellers, owns any equipment
or other tangible assets or properties situated on the premises of International
or necessary to the operation of the Business of Sellers, except for leased
items disclosed herein.

          5.2.11. Leased Real Property.
                  --------------------

          (a) Leased Real Property. Each Real Property Lease is, and at Closing
              --------------------
shall be, in full force and effect and has not been assigned, modified,
supplemented or amended, and, except as disclosed in Schedule 5.2.11, no party
                                                     ---------------
under any Real Property Lease is in default under any of the Real Property
Leases, and no circumstances or state of facts presently exists which, with the
giving of notice or passage of time, or both, would permit any party under any
Real Property Lease to terminate any Real Property Lease.

          (b) No Notices. The property used under the Real Property Leases,
              ----------
complies with all Laws of all Governmental Entities having jurisdiction over
such property, and International has received no notices, oral or written, from
any Governmental Entity, and has no reason to believe, that such property or any
improvements erected or situated thereon, or the uses conducted thereon or
therein, violate any Laws of any Governmental Entity having jurisdiction over
such property.

          5.2.12. Litigation; Decrees. There are no judicial or administrative
                  -------------------
actions, proceedings or investigations pending or, to International' knowledge,
threatened that question the validity of this Agreement or any action taken or
to be taken by International in connection with this Agreement. Except as listed
or described on Schedules 5.2.12 or 5.2.13, there are no: (i) lawsuits, claims,
                ----------------    ------
administrative or other proceedings or investigations relating to the conduct of
the Business pending or, to International' knowledge, threatened by, against or
affecting International or any Affiliate thereof or (ii) judgments, orders or
decrees of any Governmental Entity binding on the International or the Assets.

          5.2.13. Compliance With Law; Permits. International has complied, in
                  ----------------------------
all material respects, with each Law, judgment, order and decree of any
Governmental Entity to

                                       15
<PAGE>

which International or its business, operations, assets or properties is subject
and is not currently in violation of any of the foregoing. International owns,
holds, possesses or lawfully uses in the operation of its business all Permits
which are in any manner necessary for it to conduct the Business as now or
previously conducted or for the ownership and use of the Assets, free and clear
of all liens, charges, restrictions and encumbrances and in compliance with all
Laws. International is not in default, nor has it received any notice of any
claim of default, with respect to any such Permits. Except as disclosed on
Schedule 5.2.13, all such Permits are renewable by their terms or in the
---------------
ordinary course of business without the need to comply with any special
qualification procedures or to pay any amounts other than routine filing fees
and none of such Permits will be adversely affected by consummation of the
transactions contemplated hereby.

          5.2.14. Taxes.
                  -----

          (a) All Tax Returns (as defined herein) that are required to be filed
on or before the Closing Date by International have been duly filed on a timely
basis under the statutes, rules or regulations of each applicable jurisdiction.
All such Tax Returns were complete and accurate in all material respects. All
Taxes owed by International have been paid by it, whether or not such Taxes are
disputed. International has not executed or filed with the Internal Revenue
Service or any other taxing authority any agreement extending the period for
filing any Tax Return.

          (b) No claim for assessment or collection of Taxes has been asserted
against International. International is not a party to any pending action,
proceeding or investigation by any Governmental Entity for the assessment or
collection of Taxes nor does International have knowledge of any such threatened
action, proceeding or investigation.

          (c) No waivers of statutes of limitation in respect of any Tax Returns
have been given or requested by International nor has International agreed to
any extension of time with respect to a Tax assessment or deficiency. No claim
has ever been made by a Governmental Entity in a jurisdiction where
International does not currently file Tax Returns that it is or may be subject
to taxation by that jurisdiction nor is International aware that any such
assertion of jurisdiction is threatened. No security interests have been imposed
upon or asserted against any of International's Assets as a result of or in
connection with any failure, or alleged failure, to pay any Tax.

          (d) International has withheld and paid all Taxes required to be
withheld in connection with any amounts paid or owing to any employee, creditor,
independent contractor or other third party.

          5.2.15. Commissions or Finders Fees. Other than to Johnsen, Fretty and
                  ---------------------------
Co. LLC, International has not agreed to pay a commission, finder's fee or
similar payment in connection with this Agreement or any matter related hereto
to any person or entity.

                                       16
<PAGE>

          5.2.16. Conduct of Business; Certain Actions. Except as set forth on
                  ------------------------------------
Schedule 5.2.16 attached hereto, from March 3, 2000 to the date hereof,
---------------
International has, in all material respects, conducted its Business in the
ordinary course and consistent with past practices and has:

          (i) maintained the Assets of the Business in sufficient operating
     condition and repair to enable them to operate in all material respects in
     the manner in which they were being operated;

          (ii) not sold, encumbered or otherwise placed any Lien on any of the
     Assets other than in the ordinary course of business;

          (iii) used its commercially reasonable efforts to retain the services
     of its officers, employees, and independent contractors;

          (iv) used its commercially reasonable efforts to preserve its
     relationships with each of its material lenders, suppliers, customers and
     other third parties having material business dealings with International;
     and

          (v) recorded all sales and maintained its books of account in
     accordance with GAAP.

          5.2.17. Personal Guarantees. Schedule 5.1.17 describes in detail each
                  -------------------  ---------------
of the personal guarantees that have been made on behalf of Sellers by James
Arabanos, Tony Jacobson and Mark Spaniol in connection with the ownership of the
Assets and the operation of the Business (the "Personal Guarantees"). Other than
the Personal Guarantees described on Schedule 5.1.17, there are no other
                                     ---------------
personal guarantees that have been made with respect to the ownership of the
Assets or the operation of the Business.

          5.2.18. Disclosure. No representation or warranty by International
                  ----------
contained in this Agreement, and no statement contained in any document, list,
certificate or other instrument furnished or to be furnished by or on behalf of
International or any Affiliate thereof to Purchaser or any of its
representatives 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 any material fact necessary, in light of the circumstances
under which it was or will be made, in order to make the statements herein or
therein not misleading or necessary in order fully and fairly to provide the
information required to be provided in any such document, list, certificate or
other instrument. International has not failed to disclose to Purchaser any fact
which would reasonably be determined to have a material adverse effect on the
business, financial condition, results of operations or prospects of the
Business, or which is otherwise material to the Business.

     5.3. Representations and Warranties of Purchaser. Purchaser hereby makes
          -------------------------------------------
the following representations and warranties to Sellers, each of which is true
and correct as of the date hereof and shall be true and correct as of the
Closing Date and shall be unaffected by any investigation heretofore or
hereafter made by Sellers.

          5.3.1. Organization and Good Standing. Purchaser is a corporation
                 ------------------------------
validly existing and in good standing under the laws of its jurisdiction of
incorporation and has the

                                       17
<PAGE>

requisite corporate power and authority to own, lease or otherwise hold its
properties and assets and to carry on its business as presently conducted.

          5.3.2. Authorization and Effect of Agreement. Purchaser has the
                 -------------------------------------
requisite corporate power to execute and to deliver this Agreement and to
consummate the transactions contemplated hereby to be consummated by Purchaser.
The execution and delivery by Purchaser of this Agreement and the consummation
by Purchaser of the transactions contemplated hereby to be consummated by
Purchaser have been duly authorized by all necessary corporate action on the
part of Purchaser. This Agreement has been duly executed and delivered by
Purchaser and, assuming the due execution and delivery of this Agreement by
Sellers, constitutes a valid and binding obligation of Purchaser, except as may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights in general and
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

          5.3.3. No Restrictions Against Purchase of the Assets. The execution
                 ----------------------------------------------
and delivery of this Agreement by Purchaser does not, and the performance by
Purchaser of the transactions contemplated hereby to be performed by Purchaser
will not (a) conflict with the articles of incorporation or bylaws of Purchaser,
(b) conflict with, or result in any violation of, or constitute a default (with
or without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a
benefit under, any material contract or permit, order, judgment or decree to
which Purchaser is a party or by which it is bound, or (c) constitute a
violation of any law or regulation applicable to Purchaser. Except as described
on Schedule 5.3.3, no consent, approval, order or authorization of, or
   --------------
registration, declaration or filing with any Governmental Entity is required to
be obtained or made by or with respect to Purchaser in connection with the
execution and delivery of this Agreement by Purchaser or the consummation by
Purchaser of the transactions contemplated hereby to be consummated by it,
except as listed or described on Schedule 5.3.3.
                                 --------------

                        ARTICLE VI. PRE-CLOSING COVENANTS

     6.1. Access to Information. Prior to the Closing, upon reasonable notice
          ---------------------
from Purchaser to Sellers, Sellers will afford to the officers, attorneys,
accountants or other authorized representatives of Purchaser reasonable access,
during normal business hours, with minimal disruption to Sellers' Business and
accompanied by a senior management officer to the employees, Assets, facilities
and the books and records of Sellers so as to afford Purchaser full opportunity
to make such review, examination and investigation of the Business as Purchaser
may desire to make. Purchaser will be permitted to make extracts from, or to
make copies of, such books and records as may be reasonably necessary in
connection therewith. Prior to the Closing, Sellers will promptly furnish or
cause to be furnished to Purchaser such financial and operating data and other
information as Purchaser may reasonably request. All such due diligence shall be
conducted in strict compliance with that certain confidentiality agreement dated
February 21, 2000 by and between Purchaser and Johnsen, Fretty & Co., LLC,
acting on behalf of AJ Indoor, and in accordance with Section 6.7 of this
Agreement.

     6.2. Conduct of Business. Except as set forth on Schedule 6.2, as
          -------------------                         ------------
contemplated herein, or as otherwise consented to by Purchaser in writing,
during the period from the date of

                                       18
<PAGE>

the Agreement and continuing until the Closing Date, Sellers will, in respect of
the conduct of the Business:

          (a) use their commercially reasonable efforts to (i) carry on the
Business in the usual, regular and ordinary course as presently conducted and
consistent with past practice, (ii) keep the Business intact, (iii) keep
available the services of the present employees of the Business, and (iv)
maintain the goodwill associated with the Business, including, but not limited
to, preserving the relationships of customers, suppliers and others having
business dealings with the Business;

          (b) maintain the Assets in good condition, subject to normal wear and
tear;

          (c) not sell, lease or dispose of, or make any contract for the sale,
lease or disposition of, or subject to Lien, any Assets other than in the
ordinary course of the Business;

          (d) not intentionally incur any liability or obligation (absolute,
accrued, contingent or otherwise) or assume, guarantee, endorse or otherwise as
an accommodation become responsible for the obligations of any other person,
other than in the ordinary course of business;

          (e) not amend or terminate any material Contract or other agreement,
other than in the ordinary course of business consistent with past practices;

          (f) not make any change in financial or tax accounting methods,
principles or practices unless required by GAAP or applicable law;

          (g) maintain their books, accounts and records in the usual, regular
and ordinary manner on a basis consistent with prior years;

          (h) not grant to any employee of the Business any increase in
compensation or in severance or termination pay, grant any severance or
termination pay, or enter into any employment agreement with any employee,
except as may be required under employment or termination agreements in effect
on the date of this Agreement;

          (i) not enter into any agreement, including an agreement to purchase
or lease Assets, which includes an aggregate payment or commitment on the part
of either party of more than $10,000.00, and in no event enter into any such
agreements which have payments or commitments in the aggregate exceeding
$150,000; and

          (j) not take or omit to take any action as a result of which any
representation or warranty of Sellers in Article V would be rendered untrue or
incorrect if such representation or warranty were made immediately following the
taking or failure to take such action.

     6.3. Notification.
          ------------

          (a) Sellers shall notify Purchaser, and Purchaser shall notify
Sellers, of any litigation, arbitration or administrative proceeding pending or,
to such party's knowledge,

                                       19
<PAGE>

threatened against the Sellers or Purchaser, as the case may be, which
challenges the transactions contemplated hereby.

          (b) Sellers will provide prompt written notice to Purchaser of any
change in any of the information contained in its representations and warranties
made in Article V hereof or any Exhibits or Schedules referred to herein or
attached hereto and shall promptly furnish any information which Purchaser may
reasonably request in relation to such change; provided, however, that such
                                               --------  -------
notice shall not operate to cure any breach of the representations and
warranties made in Article V hereof or any Exhibits or Schedules referred to
herein or attached hereto.

     6.4. Required Consents; Cooperation. Sellers shall obtain and shall deliver
          ------------------------------
to Purchaser prior to Closing all third-party consents required to effect the
transactions contemplated hereby including, without limitation, any consents
required to assign the Contracts to Purchaser. Purchaser and the Sellers shall
cooperate fully with each other in taking any actions, including actions to
obtain the required consent of any Governmental Entity or any third party,
necessary or helpful to accomplish the transactions contemplated by this
Agreement; provided, however, that no party shall be required to take any action
           --------  -------
which would have a material adverse effect upon such party, any Affiliate
thereof, or the Assets.

     6.5. No Inconsistent Action. Neither Purchaser nor Sellers shall take any
          ----------------------
action which is materially inconsistent with their obligations under this
Agreement.

     6.6. Satisfaction of Conditions. Without limiting the generality or effect
          --------------------------
of any provision of Article VII, prior to the Closing, each of the parties will
use its reasonable efforts with due diligence and in good faith to satisfy
promptly all conditions required hereby to be satisfied by such party in order
to expedite the consummation of the transactions contemplated hereby.

     6.7. Confidentiality. Purchaser and Sellers shall keep confidential all
          ---------------
information obtained by any such party with respect to the other in connection
with this Agreement and the negotiations preceding this Agreement, and will use
such information solely in connection with the transactions contemplated by this
Agreement, and if the transactions contemplated hereby are not consummated,
shall return to the other, without retaining a copy thereof, any Schedules,
documents or other written information obtained from the other in connection
with this Agreement and the transactions contemplated hereby. Notwithstanding
the foregoing, no party shall be required to keep confidential or return any
information which (a) is known or available through other lawful sources, not
bound by a confidentiality agreement with the disclosing party, (b) is or
becomes publicly known through no fault of the receiving party or its agents,
(c) is required to be disclosed pursuant to an order or request of a judicial
authority or Governmental Entity (provided the disclosing party is given
reasonable prior notice), or (d) is developed by the receiving party
independently of the disclosure by the disclosing party.

     6.8. Publicity. Prior to the Closing, neither party will issue or cause the
          ---------
publication of any press release or other public announcement with respect to
this Agreement or the transactions contemplated hereby without the prior consent
of the other party, which consent will not be unreasonably withheld; provided,
                                                                     --------
however, that nothing herein will prohibit either party
-------

                                       20
<PAGE>

from issuing or causing publication of any such press release or public
announcement to the extent that such party determines such action to be required
by Law, in which event the party making such determination will, if practicable
in the circumstances, use reasonable efforts to allow the other party reasonable
time to comment on such release or announcement in advance of its issuance. The
parties hereto acknowledge and agree that as promptly as is practicable
following the Closing that they shall issue a joint press release in agreed form
regarding the execution of this Agreement and the consummation of the
transactions

     6.9. Acquisition Proposals. From and after the date of this Agreement,
          ---------------------
Sellers shall not, nor shall Sellers authorize or permit any officer, director
or employee of, or any investment banker, attorney, accountant or other
representative retained by Sellers to, solicit, initiate or encourage submission
of any proposal or offer (including by way of furnishing information) from any
person which constitutes, or may reasonably be expected to lead to, any
Acquisition Proposal. As used in this Agreement, "Acquisition Proposal" shall
mean any proposal for a merger or other business combination involving Sellers
or any proposal or offer to acquire in any manner a substantial equity interest
in, or a substantial portion of the Sellers Assets.

     6.10. Release of Personal Guarantees. Sellers acknowledge and agree that
           ------------------------------
prior to the Closing that they shall use their best efforts to cause each of the
Personal Guarantees made on their behalf to be released.

                       ARTICLE VII. CONDITIONS TO CLOSING

     7.1. Conditions Precedent to Obligations of Purchaser. The obligations of
          ------------------------------------------------
Purchaser under this Agreement to consummate the transactions contemplated
hereby will be subject to the satisfaction, at or prior to Closing, of all of
the following conditions, any one or more of which may be waived at the option
of Purchaser:

          7.1.1. Representations, Warranties and Covenants.
                 -----------------------------------------

          (a) All representations and warranties of Sellers made in this
Agreement or any Exhibit, Schedule or document delivered pursuant to this
Agreement, shall be true and complete in all material respects as of the date
hereof without regard to any Schedule updates furnished by Sellers after the
date hereof and on and as of the Closing Date as if made on and as of that date.

          (b) All of the terms, covenants and conditions to be complied with and
performed by the Sellers on or prior to the Closing Date shall have been
complied with or performed.

          (c) Purchaser shall have received a certificate, dated as of the
Closing Date, executed on behalf of Sellers by authorized officers thereof,
certifying in such detail as Purchaser may reasonably request that the
conditions specified in Sections 7.1.1(a) and (b) hereof have been fulfilled.

          7.1.2. Closing Documents. Sellers shall have delivered to Purchaser
                 -----------------
the documents identified in Section 8.1.

                                       21
<PAGE>

          7.1.3. Governmental Consents or Approvals. Each of the governmental
                 ----------------------------------
and other approvals, consents or waivers required to be obtained pursuant to the
terms and conditions of this Agreement shall have been obtained.

          7.1.4. No Adverse Proceedings. No suit, action, claim or governmental
                 ----------------------
proceeding shall be pending against, and no order, decree or judgment of any
court, agency or Governmental Entity shall have been rendered against, any party
hereto which would render it unlawful, as of the Closing Date, to effect the
transactions contemplated by this Agreement in accordance with its terms.

          7.1.5. Third Party Consents. Sellers shall have obtained, and shall
                 --------------------
have delivered to Purchaser, all third-party consents required to effect the
transactions contemplated hereby, including, without limitation, any consents
required to assign the Contracts to Purchaser.

          7.1.6. Key Employee Agreements. Each of James Arabanos, Tony Jacobson
                 -----------------------
and Mark Spaniol shall enter into employment agreements with Purchaser on the
Closing Date on the terms and conditions mutually agreeable to the parties
thereto.

          7.1.7. No Liens. Purchaser shall have received evidence reasonably
                 --------
satisfactory to Purchaser that any Liens on the Assets have been released,
terminated or otherwise discharged.

          7.1.8. Material Adverse Change. From the date hereof, to and including
                 -----------------------
the Closing Date, there shall not have occurred any event, condition or change
to the Business with respect to the Assets or the financial condition of the
Business, individually or together with other events, conditions or changes,
which could reasonably be expected to materially and adversely affect the value
of the Assets, taken as a whole, or the ability of Purchaser to operate the
Business.

          7.1.9. Security for Indemnification Obligations of Sellers. Sellers
                 ---------------------------------------------------
shall have issued a letter of credit for the benefit of Purchaser in the amount
of One Hundred Thousand Dollars ($100,000) in order to secure any payments that
may be required to be made by Sellers to Purchaser pursuant to Section 10.3 of
this Agreement, on terms and conditions more particularly described in the side
letter among the parties and referenced in Sections 8.1.6 and 8.2.8.

          7.1.10. Investment Side Letter. Purchaser shall have entered into a
                  ----------------------
side letter with James Arabanos, Tony Jacobson and Mark Spaniol on terms and
conditions mutually acceptable to Purchaser regarding the obligation of each of
Arabanos, Jacobson and Spaniol to invest in Class C membership interests of
NextMedia Investors, LLC, a Delaware limited liability company and the parent of
Purchaser.

                                       22
<PAGE>

     7.2. Conditions Precedent to Obligations of Sellers. The obligations of
          ----------------------------------------------
Sellers under this Agreement to consummate the transactions contemplated hereby
will be subject to the satisfaction, at or prior to the Closing, of all the
following conditions, any one or more of which may be waived at the option of
Sellers:

          7.2.1. No Material Misrepresentation or Breach.
                 ---------------------------------------

          (a) All representations and warranties of the Purchaser made in this
Agreement or in any Exhibit, Schedule or document delivered pursuant hereto,
shall be true and complete in all material respects as of the date hereof and on
and as of the Closing Date as if made on and as of that date.

          (b) All of the terms, covenants and conditions to be complied with and
performed by the Purchaser on or prior to the Closing Date shall have been
complied with or performed.

          (c) Sellers shall have received a certificate, dated as of the Closing
Date, executed on behalf of Purchaser by an authorized officer, certifying in
such detail as Sellers may reasonably request that the conditions specified in
Sections 7.2.1(a) and (b) have been fulfilled.

          7.2.2. Closing Documents. Purchaser shall have delivered to Sellers
                 -----------------
the documents identified in Section 8.2.

          7.2.3. Governmental Consents or Approvals. Each of the governmental
                 ----------------------------------
and other approvals, consents or waivers required to be obtained pursuant to the
terms and conditions of this Agreement shall have been obtained.

          7.2.4. No Adverse Proceedings. No suit, action, claim or governmental
                 ----------------------
proceeding shall be pending against, and no order, decree or judgment of any
court, agency or other Governmental Entity shall have been rendered against, any
party hereto which would render it unlawful, as of the Closing Date, to effect
the transactions contemplated by this Agreement in accordance with its terms.

          7.2.5. Closing Price. Purchaser shall have delivered to Sellers by
                 -------------
wire transfer an amount equal to the Purchase Price.

          7.2.6. Financial Change. From the date hereof, to and including the
                 ----------------
Closing Date, there shall not have occurred any event, condition or change
outside of the ordinary course of business which has had, or could reasonably be
expected to have, a material adverse effect on the financial condition of
Purchaser.

          7.2.7. Letter of Credit. Purchaser shall have issued a letter of
                 ----------------
credit for the benefit of Sellers in order to secure any payments that may be
required to be made by Purchaser to Sellers pursuant to Sections 3.2 and 3.3 of
this Agreement, on terms and conditions more particularly described in the side
letter among the parties and referenced in Sections 8.1.5 and 8.2.7 of this
Agreement.

                                       23
<PAGE>

             ARTICLE VIII. DOCUMENTS TO BE DELIVERED AT THE CLOSING

     8.1. Documents to be Delivered by Sellers. At the Closing, Sellers will
          ------------------------------------
deliver to Purchaser the following, at the expense of Sellers and in proper form
for recording when appropriate:

          8.1.1. Transfer Documents. Such bills of sale, assignments (including
                 ------------------
assignments with respect to contracts and leases), and other good and sufficient
instruments of transfer as Purchaser may reasonably request conveying and
transferring to Purchaser title to the Assets.

          8.1.2. Resolutions. Resolutions of the Board of Directors of each
                 -----------
Sellers approving the execution and delivery of this Agreement and each of the
other documents delivered by such Sellers pursuant thereto and authorizing the
consummation of the transactions contemplated hereby and thereby.

          8.1.3. Officer's Certificate. Certificates, dated the Closing Date,
                 ---------------------
executed on behalf of Sellers in the form described in Section 7.1.1.

          8.1.4. Good Standing Certificates. Governmental certificates showing
                 --------------------------
that Sellers are validly existing and in good standing in Minnesota and are in
good standing in each state in which they are qualified to conduct the Business,
certified as of a date not more than ten (10) days before the Closing Date.

          8.1.5. Purchaser Letter of Credit Side Letter. A side letter by and
                 --------------------------------------
among the parties with respect to Purchaser's obligation to issue a letter of
credit for the benefit of Sellers in order to secure any payments that may be
required to be made by Purchaser to Sellers pursuant to Sections 3.2 and 3.3 of
this Agreement.

          8.1.6. Seller Letter of Credit Side Letter. A side letter by and among
                 -----------------------------------
the parties with respect to Sellers' obligation to issue a letter of credit for
the benefit of Purchaser in order to secure any payments that may be required to
be made by Sellers to Purchaser pursuant to Section 10.3 of this Agreement.

          8.1.7. Other Documents. Such additional information and materials as
                 ---------------
Purchaser shall reasonably request.

     8.2. Documents to be Delivered by Purchaser. At the Closing, Purchaser will
          --------------------------------------
deliver to Sellers, at its expense:

          8.2.1. Purchase Price. Evidence of a wire transfer in the amount of
                 --------------
the Purchase Price.

          8.2.2. Certified Resolutions. Resolutions by an authorized officer of
                 ---------------------
Purchaser approving the execution and delivery of this Agreement and each of the
other documents delivered by Purchaser pursuant hereto and authorizing the
consummation of the transactions contemplated hereby and thereby.

                                       24
<PAGE>

          8.2.3. Officer's Certificate. A certificate, dated the Closing Date,
                 ---------------------
executed on behalf of the Purchaser in the form described in Section 7.2.1.

          8.2.4. Good Standing Certificates. Governmental certificates showing
                 --------------------------
that Purchaser is validly existing and in good standing in the state of its
organization, certified as of a date not more than ten (10) days before the
Closing Date.

          8.2.5. Key Employment Agreements. Employment agreements between
                 -------------------------
Purchaser and each of James Arabanos, Tony Jacobson and Mark Spaniol executed on
behalf of the parties thereto on terms and conditions mutually agreeable to the
parties thereto.

          8.2.6. Assumption Agreement. An assumption agreement in a form and
                 --------------------
substance reasonably satisfactory to Seller which governs Purchaser's assumption
of the Assumed Liabilities pursuant to the terms and conditions of this
Agreement.

          8.2.7. Purchaser Letter of Credit Side Letter. A side letter by and
                 --------------------------------------
among the parties with respect to Purchaser's obligation to issue a letter of
credit for the benefit of Sellers in order to secure any payments that may be
required to be made by Purchaser to Sellers pursuant to Sections 3.2 and 3.3 of
this Agreement.

          8.2.8. Seller Letter of Credit Side Letter. A side letter by and among
                 -----------------------------------
the parties with respect to Sellers' obligation to issue a letter of credit for
the benefit of Purchaser in order to secure any payments that may be required to
be made by Sellers to Purchaser pursuant to Section 10.3 of this Agreement.

          8.2.9. Other Documents. Such additional information and materials as
                 ---------------
Sellers shall reasonably request.

                       ARTICLE IX. POST-CLOSING COVENANTS

     9.1. Employee Benefits. Purchaser shall assume no liability to any employee
          -----------------
of Sellers in connection with any benefit accrued by such employee price to
Closing. No portion of the assets of any employee plan, pension plan or any
other plan, fund, program or arrangement, written or unwritten, heretofore
sponsored or maintained by Sellers (and no amount attributable to any such plan,
fund, program or arrangement) shall be transferred to Purchaser, and Purchaser
shall not be required to continue any such plan, fund, program or arrangement
after the Closing Date. The amounts payable on account of all benefit
arrangements shall be determined with reference to the date of the event by
reason of which such amounts become payable, without regard to conditions
subsequent, and Purchaser shall not be liable for any claim for insurance,
reimbursement or other benefits payable by reason of any event which occurs
prior to the Closing Date. All employees of Sellers who are employed by
Purchaser on or after the Closing Date in accordance with Section 9.2 of this
Agreement shall be new employees of Purchaser and any prior employment by
Sellers of such employees shall not affect entitlement to, or the amount of,
salary or other cash compensation, current or deferred, which Purchaser may make
available to its employees.

     9.2. Non-Solicitation. As of the Closing Date, Purchaser shall offer
          ----------------
employment to, and Sellers shall use their commercially reasonable efforts,
without any obligation to incur any

                                       25
<PAGE>

expense or liability, to assist Purchaser in employing as new employees of
Purchaser, all persons presently engaged in the Business who are identified by
Purchaser prior to the Closing Date (the "Employees"). Sellers shall terminate
effective as of the Closing Date all employment arrangements it has with any of
the Employees. Sellers shall be responsible for any severance or similar
obligations arising from any such terminations. Until the third anniversary of
the Closing Date, Sellers will not directly or indirectly solicit or offer
employment to any Employee (i) who did not become an employee of Purchaser
within 180 days of Closing, (ii) who is then an employee of Purchaser, or (iii)
who has terminated such employment without the consent of Purchaser within 180
days of such solicitation or offer.

     9.3. Discharge of Business Obligations. From and after the Closing Date,
          ---------------------------------
Sellers shall pay and discharge, in accordance with past practice but not less
than on a timely basis, all obligations and liabilities incurred prior to the
Closing Date in respect of the Business, its operations or the assets and
properties used therein (except for those expressly assumed by Purchaser
hereunder), including without limitation any liabilities or obligations to
employees, trade creditors and clients of the Business.

     9.4. Maintenance of Books and Records. Sellers and Purchaser shall preserve
          --------------------------------
until the tenth anniversary of the Closing Date all records possessed or to be
possessed by such party relating to any of the Assets, the Assumed Liabilities
or the Business prior to the Closing Date. After the Closing Date, where there
is a legitimate purpose, such party shall provide the other parties with access,
upon prior reasonable written request specifying the need therefor, during
regular business hours, to (i) the officers, employees and representatives of
such party and (ii) the books of account and records of such party, but, in each
case, only to the extent relating to the Assets, Assumed Liabilities or the
Business prior to the Closing Date, and the other parties and their
representatives shall have the right to make copies of such books and records;
provided, however, that the foregoing right of access shall not be exercisable
--------  -------
in such a manner as to interfere unreasonably with the normal operations and
business of such party; and further, provided, that, as to so much of such
                            -------  --------
information as constitutes trade secrets or confidential business information of
such party, the requesting party and its officers, directors and representatives
will use due care to not disclose such information except (i) as required by
law, (ii) with the prior written consent of such party, which consent shall not
be unreasonably withheld, or (iii) where such information becomes available to
the public generally, or becomes generally known to competitors of such party,
through sources other than the requesting party, its affiliates or its officers,
directors or representatives. Such records may nevertheless be destroyed by a
party if such party sends to the other parties written notice of its intent to
destroy records, specifying with particularity the contents of the records to be
destroyed. Such records may then be destroyed after the 30th day after such
notice is given unless another party objects to the destruction, in which case
the party seeking to destroy the records shall either agree to retain such
records or deliver such records to the objecting party.

     9.5. Payments Received. Each party agrees that after the Closing that such
          -----------------
party will hold and will promptly transfer and deliver to the other, from time
to time as and when received by such party, any cash, checks with appropriate
endorsements (using their efforts not to convert such checks into cash), or
other property that such party may receive on or after the Closing which
properly belongs to the other under this Agreement.

                                       26
<PAGE>

     9.6. UCC Matters. From and after the Closing Date, Sellers will promptly
          -----------
refer all inquiries with respect to ownership of the Assets or the Business to
Purchaser. In addition, Sellers will execute such title documents and financing
statements as Purchaser may reasonably request from time to time to evidence
transfer of the Assets to Purchaser, including any necessary assignments of
financing statements.

     9.7. Covenant Not to Compete; Confidentiality. Sellers agrees that for a
          ----------------------------------------
period of three (3) years after the Closing Date that neither Sellers nor any of
their Affiliates will, directly or indirectly, (i) own, manage, operate, control
or participate in the ownership, management, operation or control of any
business, whether in corporate, proprietorship or partnership form or otherwise,
that competes with the Business; A competing business for purposes of the
foregoing, shall include any business engaged in indoor print advertising in
restaurants, bars and public facilities located throughout the United States, or
(ii) disclose, reveal, divulge or communicate to any person or entity other than
authorized officers, directors or employees of Purchaser, or use or otherwise
exploit for their own benefit or for the benefit of anyone other than Purchaser,
any Confidential Information (as defined below). Sellers shall not have any
obligation to keep confidential any Confidential Information if and to the
extent disclosure thereof is specifically required by law; provided, however,
                                                           --------  -------
that in the event disclosure is required by applicable law, Sellers shall, to
the extent reasonably possible, provide Purchaser with prompt notice of such
requirement prior to making any disclosure so that Purchaser may seek an
appropriate protective order. For purposes of this Section 9.7, "Confidential
Information" shall mean any confidential information with respect to the conduct
or details of the Business, including, without limitation, methods of operation,
customers, and customer lists, products, proposed products, former products,
proposed, pending or completed acquisitions of any company, division, product
line or other business unit, prices, fees, costs, plans, designs, technology,
inventions, trade secrets, know-how, software, marketing methods, policies,
plans, personnel, suppliers, competitors, markets or other specialized
information or proprietary matters. The term "Confidential Information" does not
include, and there shall be no obligation hereunder with respect to, information
that (a) is generally available to the public on the date of this Agreement, or
(b) becomes generally available to the public other than as a result of a
disclosure by Sellers not otherwise permissible thereunder, or (c) Sellers learn
from other sources where such sources have not violated their confidentiality
obligation to Purchaser. The parties hereto specifically acknowledge and agree
that the remedy at law for any breach of the foregoing will be inadequate and
that the Purchaser, in addition to any other relief available to it, shall be
entitled to temporary and permanent injunctive relief without the necessity of
proving actual damage. In the event that the provisions of this Section 9.7
should ever be deemed to exceed the limitation provided by applicable law, then
the parties hereto agree that such provisions shall be reformed to set forth the
maximum limitations permitted.

     9.8. Certain Tax Matters.
          -------------------

          (a) All sales, use, transfer, stamp, conveyance, value added or other
similar taxes, duties, excises or governmental charges imposed by any taxing
jurisdiction, domestic or foreign, and all recording or filing fees, notarial
fees and other similar costs of Closing with respect to the transfer of the
Assets or otherwise on account of this Agreement or the transactions
contemplated hereby will be borne by Sellers. Sellers will indemnify Purchaser
against any liability, direct or indirect, for any Taxes imposed on Purchaser or
with respect to the Assets that

                                       27
<PAGE>

are attributable to any taxable periods ending on or prior to the Closing Date
or with respect to the allocable portion of any taxable period that includes but
does not end on the Closing Date.

          (b) Purchaser, in conjunction with Sellers where the taxable period
for which the Tax Return is to be filed includes any period for which Sellers
may be subjected to Tax liability in conjunction with their operation of the
Business, will prepare and file or cause to be prepared and filed all Tax
Returns with respect to the Business required to be filed with the appropriate
United States, state and local agencies for all taxable periods for which Tax
Returns are due after the Closing Date. Purchaser will make all payments
required with respect to any such Tax Returns. The preceding sentence will not
limit or relieve Sellers of their obligations to reimburse Purchaser
concurrently therewith to the extent that any payment by Purchaser relates to
the operations of the Business for any period ending on or before the Closing
Date or with respect to the allocable portion of any taxable period that
includes but does not end on the Closing Date.

          (c) Sellers will prepare and file or cause to be prepared and filed
all Tax Returns for the Sellers that are required to be filed with respect to
the Business, other than Tax Returns that Purchaser is obligated to prepare and
file pursuant to Section 9.8(b) with the appropriate United States, state and
local agencies. Sellers will pay or cause to be paid all Taxes required to be
paid with respect to such Tax Returns. Sellers will pay all Taxes that are
imposed with respect to the Business or with respect to the allocable portion of
any taxable period that includes but does not end on the Closing Date (or, if
applicable, reimburse Purchaser for the payment of such Taxes) attributable to
taxable periods ending on or prior to the Closing Date. The amount of Taxes
attributable to a portion of a taxable period that includes but does not end on
the Closing Date shall be determined pursuant to the interim closing of the
books method.

     9.9. Insurance. With respect to any loss, liability or damage relating to,
          ---------
resulting from or arising out of the conduct of the Business on or prior to the
Closing Date for which Sellers would be entitled to assert, or cause any
Affiliate or other person or entity to assert, a claim for recovery under any
policy of insurance maintained by or for the benefit of Sellers or any Affiliate
thereof in respect of the Business or the Assets, at the request of Purchaser,
Sellers will use reasonable efforts to assert, or to assist Purchaser to assert,
one or more claims under such insurance covering such loss, liability or damage
if Purchaser is not itself entitled to assert such claim but Sellers are so
entitled. In the case of any damage to or destruction of the Assets occurring
prior to Closing that is covered by insurance maintained by Sellers or any
Affiliate of Sellers, Sellers shall deliver all insurance proceeds realized
therefrom to Purchaser at Closing or as soon thereafter as collected by Sellers
or such Affiliate.

     9.10. Operation of Business. Purchaser acknowledges and agrees that from
           ---------------------
and after the Closing Date through December 31, 2000 that it shall consistently
operate the Business in general conformity to Sellers' projected 2000 budget for
the Business as set forth on Schedule 9.10 attached hereto. Purchaser further
acknowledges that prior to incurring any Material Expense(s) in connection with
the operation of the Business that it shall obtain the prior written consent of
Sellers, which consent shall not be unreasonably withheld or delayed. For the
purposes of the foregoing, "Material Expense(s)" shall include any of the
following: (i) any Business expense relating to operational overhead which
exceeds $10,000.000 per year in the aggregate and is not included in the
projected 2000 Budget, (ii) any new market acquisition

                                       28
<PAGE>

expenses, (iii) any capital expenses, and (iv) any salaries/bonuses or
compensation to employees or independent contractors that are not included in
the projected 2000 Budget. In the event that Purchaser fails to obtain any such
written consent, the amount of such unconsented Material Expense shall not be
included in the EBITDA calculation for purposes of the adjustment provisions
contained in Article III of this Agreement.

     9.11. Transfer of Assets. Purchaser acknowledges and agrees that from and
           ------------------
after the Closing Date through the date on which it is determined that no
additional adjustment payments are required to be made to Sellers by Purchaser
pursuant to Article III, or the date on which all of the adjustment payments to
be made by Purchaser to Sellers under Article III have been made, that Purchaser
shall actively manage and operate the Business and shall not transfer title to
any of the Assets to any entity who is not an Affiliate of Purchaser. Purchaser
further acknowledges that in the event that Purchaser breaches the provisions of
this Section 9.11 that Purchaser shall pay to Sellers an amount equal to
$21,300,000 less all amounts which have previously been paid to Sellers pursuant
to the terms and conditions of Article III.

     9.12. Working Capital Amount. The parties acknowledge and agree that in the
           ----------------------
event that it is discovered at any time following the Closing that the Accounts
Receivable or the prepaid expenses acquired pursuant to Sections 1.1.10 or
1.1.11 of this Agreement were invalid or that the liabilities assumed pursuant
to Section 2.1(v) were understated such that the working capital amount that
should have been a part of the Purchase Price at Closing differed from the
Working Capital Amount actually included, and the difference provided a benefit
to Sellers, Purchaser shall be entitled to promptly receive from Sellers the
amount that was incorrectly attributable to the Working Capital Amount in favor
of Sellers. The parties further acknowledge and agree that in the event that any
Accounts Receivable assumed by Purchaser pursuant to Section 1.1.10 of this
Agreement have not been collected within 120 days of the Closing Date that, upon
written notice from Purchaser detailing the amount of such uncollected Accounts
Receivable, Sellers shall promptly pay to Purchaser an amount equal to the
amount of such uncollected Accounts Receivable and, in the event of any
subsequent collection of the uncollected Accounts Receivable by Purchaser,
Purchaser shall promptly remit such funds to Sellers.

     9.13. Notices and Filings Under Franchise Agreements. International agrees
           ----------------------------------------------
that, from and after the Closing Date, it shall make all filings, and shall
deliver or cause to be delivered all notices, as may be required under the terms
and conditions of any franchise agreement to which International is a party as
of the Closing Date.

     9.14. Maintenance of Seller Health Plan. At Closing, Purchaser shall assume
           ---------------------------------
AJ Indoor's Group Health Care Coverage Contract with Blue Cross and Blue Shield
of Minnesota, Contract Number RG086. Purchaser agrees that from and after the
Closing Date through December 31, 2000 that Purchaser shall make all regular
premium payments which come due with respect to such contract and shall keep
such contract in full force and effect. Purchaser shall have no obligation to
maintain such contract, and may terminate the same in its sole and absolute
discretion, at any time following December 31, 2000.

                                       29
<PAGE>

                     ARTICLE X. SURVIVAL AND INDEMNIFICATION

     10.1. Survival of Representations, Warranties and Covenants.
           -----------------------------------------------------

          (a) Except as to (i) the representations and warranties contained in
Section 5.1.8 relating to title to the Assets, which shall survive the Closing
and remain in effect indefinitely and (ii) the representations and warranties
contained in Section 5.1.14, which shall survive the Closing until the
expiration of the last day on which any Tax may be validly assessed by the
Internal Revenue Service or any other Governmental Entity against the Assets or
the Business, the representations and warranties of Sellers and Purchaser
contained in this Agreement or in any Transfer Document shall survive the
Closing until the expiration of two years from the Closing Date. Any claim for
indemnification with respect to any of such matters which is not asserted by
notice given as herein provided relating thereto within such specified period of
survival may not be pursued and is hereby irrevocably waived after such time.
Any claim for an Indemnifiable Loss asserted within such period of survival as
herein provided will be timely made for purposes hereof.

          (b) Unless a specified period is set forth in this Agreement (in which
event such specified period will control), the covenants in this Agreement will
survive the Closing and remain in effect indefinitely.

     10.2. Limitations on Liability. For purposes of this Agreement, (i)
           ------------------------
"Indemnity Payment" means any amount of Indemnifiable Losses required to be paid
pursuant to this Agreement, (ii) "Indemnitee" means any person or entity
entitled to indemnification under this Agreement, (iii) "Indemnifying Party"
means any person or entity required to provide indemnification under this
Agreement, (iv) "Indemnifiable Losses" means any and all damages, losses,
liabilities, obligations, costs and expenses, and any and all claims, demands or
suits (by any person or entity, including without limitation any Governmental
Entity), including without limitation the costs and expenses of any and all
actions, suits, proceedings, demands, assessments, judgments, settlements and
compromises relating thereto and including reasonable attorneys' fees, court
costs and expenses in connection therewith, and (v) "Third Party Claim" means
any claim, action or proceeding made or brought by any person or entity who or
which is not a party to this Agreement or an Affiliate of a party to this
Agreement. Notwithstanding any other provision hereof or of any applicable Law,
no Indemnitee will be entitled to make a claim against an Indemnifying Party
hereunder unless and until the aggregate amount of claims asserted for
Indemnifiable Losses exceeds $100,000 in which event the Indemnitee will be
entitled to make a claim against the Indemnifying Party to the extent of the
full amount of Indemnifiable Losses. Notwithstanding the foregoing, the
aggregate amount of claims which may be asserted for Indemnifiable Losses with
respect to breaches of representations and warranties under Sections 10.3(a)(i)
or 10.3(b)(i) shall in no event exceed $4,500,000.

     10.3. Indemnification.
           ---------------

          (a) Subject to Sections 10.1 and 10.2, Sellers agree to indemnify,
defend and hold harmless Purchaser and its Affiliates and their respective
directors, officers, partners, employees, agents and representatives from and
against any and all Indemnifiable Losses to the extent relating to, resulting
from or arising out of:

                                       30
<PAGE>

          (i) any breach of any representation or warranty of Sellers under the
     terms of this Agreement or any certificate or other document delivered
     pursuant hereto;

          (ii) any breach or nonfulfillment of any agreement or covenant of
     Sellers under the terms of this Agreement;

          (iii) any Retained Liabilities;

          (iv) any failure to comply with any "bulk sales" laws applicable to
     the transactions contemplated hereby; and

          (v) the conduct of the Business or any portion thereof or the use or
     ownership of any of the Assets prior to or on the Closing Date.

          (b) Subject to Sections 10.1 and 10.2, Purchaser agrees to indemnify,
defend and hold harmless Sellers and their Affiliates and their respective
directors, officers, partners, employees, agents or representatives from and
against any and all Indemnifiable Losses to the extent relating to, resulting
from or arising out of:

          (i) any breach of representation or warranty of Purchaser under the
     terms of this Agreement or any certificate or other document delivered
     pursuant hereto;

          (ii) any breach or nonfulfillment of any agreement or covenant of
     Purchaser under the terms of this Agreement;

          (iii) any Assumed Liabilities;

          (iv) the conduct of the Business or any portion thereof or use or
     ownership of any of the Assets after the Closing Date; and

          (v) any claim made by a third party with respect to the Personal
     Guarantees (to the extent that the same shall not have been released prior
     to the Closing).

     10.4. Defense of Claims.
           -----------------

          (a) If any Indemnitee receives notice of the assertion or commencement
of any Third Party Claim against such Indemnitee with respect to which an
Indemnifying Party is obligated to provide indemnification under this Agreement,
the Indemnitee will give such Indemnifying Party reasonably prompt written
notice thereof, but in any event not later than 30 calendar days after receipt
of the notice of such Third Party Claim. Such notice will describe the Third
Party Claim in reasonable detail, will include copies of all material written
evidence thereof and will indicate the estimated amount, if reasonably
practicable, of the Indemnifiable Loss that has been or may be sustained by the
Indemnitee. The Indemnifying Party will have the right to participate in, or, by
giving written notice to the Indemnitee, to assume, the defense of any Third
Party Claim at such Indemnifying Party's own expense and by such Indemnifying
Party's own counsel (reasonably satisfactory to the Indemnitee), and the
Indemnitee will cooperate in good faith in such defense.

                                       31
<PAGE>

          (b) If, within ten calendar days after giving notice of a Third Party
Claim to an Indemnifying Party pursuant to Section 10.4(a), an Indemnitee
receives written notice from the Indemnifying Party that the Indemnifying Party
has elected to assume the defense of such Third Party Claim as provided above,
the Indemnifying Party will not be liable for any legal expenses subsequently
incurred by the Indemnitee in connection with the defense thereof; provided,
                                                                   --------
however, that if the Indemnifying Party fails to take reasonable steps necessary
-------
to defend diligently such Third Party Claim within ten calendar days after
receiving written notice from the Indemnitee that the Indemnitee believes the
Indemnifying Party has failed to take such steps or if the Indemnifying Party
has not undertaken fully to indemnify the Indemnitee in respect of all
Indemnifiable Losses relating to the matter, the Indemnitee may assume its own
defense, and the Indemnifying Party will be liable for all reasonable costs or
expenses paid or incurred in connection therewith. Without the prior written
consent of the Indemnitee, the Indemnifying Party will not enter into any
settlement of any Third Party Claim which would lead to liability or create any
financial or other obligation on the part of Indemnitee for which Indemnitee is
not entitled to indemnification hereunder. If a firm offer is made to settle a
Third Party Claim without leading to liability or the creation of a financial or
other obligation on the part of Indemnitee for which Indemnitee is not entitled
to indemnification hereunder and the Indemnifying Party desires to accept and
agree to such offer, the Indemnifying Party will give written notice to the
Indemnitee to that effect. If the Indemnitee fails to consent to such firm offer
within ten calendar days after its receipt of such notice, the Indemnitee may
continue to contest or defend such Third Party Claim and, in such event, the
maximum liability of the Indemnifying Party as to such Third Party Claim will
not exceed the amount of such settlement offer, plus costs and expenses paid or
incurred by the Indemnitee through the end of such ten calendar day period.

          (c) A failure to give timely notice or to include any specified
information in any notice as provided in Sections 10.4(a) or 10.4(b) will not
affect the rights or obligations of any party hereunder except, and only to the
extent that, as a result of such failure, any party which was entitled to
receive such notice was damaged as a result of such failure.

          (d) The Indemnifying Party will have a period of 30 calendar days
within which to respond in writing to any claim by an Indemnitee on account of
an Indemnifiable Loss which does not result from a Third Party Claim (a "Direct
Claim"). If the Indemnifying Party does not so respond within such 30 calendar
day period, the Indemnifying Party will be deemed to have rejected such claim,
in which event the Indemnitee will be free to pursue such remedies as may be
available to the Indemnitee on the terms and subject to the provisions of this
Article X.

          (e) If the amount of any Indemnifiable Loss, at any time subsequent to
the making of an Indemnity Payment, is reduced by recovery, settlement or
otherwise under or pursuant to any insurance coverage, or pursuant to any claim,
recovery, settlement or payment by or against any other entity, the amount of
such reduction, less any costs, expenses, premiums or taxes incurred in
connection therewith (together with interest thereon from the date of payment
thereof at the annualized rate of interest equal to the "prime" or "reference"
rate of interest as publicly announced by NorWest N.A. and in effect from time
to time during the relevant period, calculated on the basis of the actual number
of days elapsed over 365) will promptly be repaid by the Indemnitee to the
Indemnifying Party. Upon making any Indemnity Payment the

                                       32
<PAGE>

Indemnifying Party will, to the extent of such Indemnity Payment, be subrogated
to all rights of the Indemnitee against any third party that is not an Affiliate
of the Indemnitee in respect of the Indemnifiable Loss to which the Indemnity
Payment related; provided, however, that (i) the Indemnifying Party shall then
be in compliance with its obligations under this Agreement in respect of such
Indemnifiable Loss and (ii) until the Indemnitee recovers fully payment of its
Indemnifiable Loss, any and all claims of the Indemnifying Party against any
such third party on account of said Indemnity Payment will be subrogated and
subordinated in right of payment to the Indemnitee's rights against such third
party. Without limiting the generality or effect of any other provision hereof,
each such Indemnitee and Indemnifying Party will duly execute upon request all
instruments reasonably necessary to evidence and perfect the above-described
subrogation and subordination rights.

                             ARTICLE XI. TERMINATION

     11.1. Termination. Notwithstanding anything contained in this Agreement to
           -----------
the contrary, this Agreement may be terminated at any time prior to the Closing
if the party seeking to terminate is not then in material default or breach of
this Agreement:

          (a) By the mutual written consent of Purchaser and Sellers;

          (b) By either Purchaser or Sellers if the Closing shall not have
occurred on or before May 23, 2000; provided, however, that if the Closing shall
                                    --------  -------
not have occurred on or before any such date due to a breach of this Agreement
by Purchaser or Sellers, the breaching party may not terminate this Agreement
pursuant to this Section 11.1(b);

          (c) By either Purchaser or Sellers if there shall have been entered an
order or injunction of any Governmental Entity restraining or prohibiting the
consummation of the transactions contemplated hereby or any material part
thereof; or

          (d) By either Purchaser or Sellers if, prior to the Closing Date, the
other party is in material breach of any representation, warranty, covenant or
agreement herein contained and such breach shall not be cured within fifteen
(15) days of the date of notice of default served by the party claiming such
material default, provided that such terminating party shall not also be in
material breach of this Agreement at the time notice of termination is
delivered. In no event shall termination of this Agreement relieve any party of
any liability for breaches of this Agreement prior to the date of termination.

     In no event shall termination of this Agreement relieve any party of any
liability for breaches of this Agreement prior to the date of termination.

                      ARTICLE XII. MISCELLANEOUS PROVISIONS

     12.1. Notices. All notices and other communications required or permitted
           -------
hereunder will be in writing and, unless otherwise provided in this Agreement,
will be deemed to have been duly given when delivered in person, one (1)business
day after having been dispatched by a nationally recognized overnight courier
service or when such notice is delivered by certified mail, return receipt
requested, postage prepaid to the appropriate party at the address specified
below:

                                       33
<PAGE>

          (a)  If to Sellers, to:

               AJ Indoor Advertising, Inc.
               and
               AJ Indoor International, Inc.
               3940 Quebec Ave. North, Ste. 203
               Minneapolis, Minnesota  55247
               Attention: Mr. Jim Arabanos

               with a copy to:

               Segreto & Associates
               1433 W. 32nd Street
               Minneapolis, Minnesota  55408
               Attention: Louise M. Segreto

          (b)  If to Purchaser, to:

               NextMedia Group, LLC
               6312 S. Fiddler's Green Circle, 360E
               Englewood, Colorado  80111
               Attention: Sean Stover

               with a copy to:

               Weil, Gotshal & Manges LLP
               100 Crescent Court, Suite 1300
               Dallas, Texas  75201-6950
               Attention: Glenn D. West

or to such other address or addresses as any such party may from time to time
designate as to itself by like notice.

     12.2. Expenses. Except as otherwise expressly provided herein, each party
           --------
will pay its expenses incurred incident to this Agreement and in preparing to
consummate and consummating the transactions provided for herein.

     12.3. Successors and Assigns. This Agreement shall be binding upon, and
           ----------------------
shall inure to the benefit of, the parties hereto and their respective
successors and permitted assigns, but will not be assignable or delegable by any
party without the prior written consent of the other party which consent shall
not be unreasonably withheld; provided, however, that (a) other than the
                              --------  -------
provisions contained in Section 9.11, nothing in this Agreement is intended to
limit Purchaser's ability to sell or to transfer any or all of the Assets
following the Closing Date, (b) upon notice to Sellers, Purchaser may assign or
delegate any or all of its rights or obligations under this Agreement to any
Affiliate or subsidiary of Purchaser, and (c) Purchaser may make a collateral
assignment of its rights under this Agreement to any institutional lender who
provides funds to Purchaser for the acquisition of the Assets. Sellers agree to
execute acknowledgements of such assignment(s) and collateral assignments in
such forms as Purchaser or Purchaser's institutional

                                       34
<PAGE>

lender(s) may from time to time reasonably request. In the event of such a
proposed assignment by Purchaser, the provisions of this Agreement shall inure
to the benefit of, and be binding upon, Purchaser's assigns.

     12.4. Entire Agreement. This Agreement (including the Schedules hereto)
           ----------------
supersedes any other agreement, whether written or oral, that may have been made
or entered into by any party hereto (or by any representative thereof) relating
to the matters contemplated hereby. This Agreement (together with any Exhibits
or Schedules hereto) constitutes the entire agreement by and among the parties
hereto and there are no agreements or commitments by or among such parties or
their Affiliates except as expressly set forth herein.

     12.5. Amendments and Supplements. This Agreement may be amended or
           --------------------------
supplemented at any time by additional written agreements signed by the parties
hereto.

     12.6. Rights of the Parties. Except as may otherwise be provided herein,
           ---------------------
nothing expressed or implied in this Agreement is intended or will be construed
to confer upon or give any person or entity other than the parties hereto and
their respective Affiliates any rights or remedies under or by reason of this
Agreement or any transaction contemplated hereby.

     12.7. Further Assurances. From time to time, as and when requested by any
           ------------------
party, the other parties will execute and deliver, or cause to be executed and
delivered, all such documents and instruments as may be reasonably necessary to
consummate the transactions contemplated by this Agreement.

     12.8. Bulk Sales. Purchaser waives compliance by Sellers with the
           ----------
provisions of the bulk sales Law of any jurisdiction; provided, however, that
                                                      --------  -------
Sellers will indemnify, defend and hold harmless Purchaser and its Affiliates in
respect of any Indemnifiable Loss relating to, resulting from or arising out of
Sellers' failure so to comply with such Laws in connection with the transactions
contemplated by this Agreement.

     12.9. Transfers. The parties hereto will cooperate and take such action as
           ---------
may be reasonably requested by the other parties in order to effect an orderly
transfer of the Assets and the Business with minimum disruption to the
operations and employees of the businesses of Purchaser and Sellers.

     12.10. Governing Law. This Agreement, including without limitation, the
            -------------
interpretation, construction and validity hereof, shall be governed by the Laws
of the state of Minnesota.

     12.11. Severability. The parties agree that if one or more provisions
            ------------
contained in this Agreement shall be deemed or held to be invalid, illegal or
unenforceable in any respect under any applicable Law, this Agreement shall be
construed with the invalid, illegal or unenforceable provision deleted, and the
validity, legality and enforceability of the remaining provisions contained
herein shall not be affected or impaired thereby.

     12.12. Execution in Counterparts. This Agreement may be executed in two or
            -------------------------
more counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same agreement.

                                       35
<PAGE>

     12.13. Titles and Headings. Titles and headings to sections of this
            -------------------
Agreement are inserted for convenience of reference only and are not intended to
be a part of, or to affect the meaning or interpretation of, this Agreement.

     12.14. Waiver. No failure or delay on the part of any party in exercising
            ------
any right, power or privilege hereunder or under any of the documents delivered
in connection with this Agreement shall operate as a waiver of such right, power
or privilege; nor shall any single or partial exercise of any such right, power
or privilege preclude any other or future exercise thereof or the exercise of
any other right, power or privilege.

     12.15. Passage of Title and Risk of Loss. Legal title, equitable title and
            ---------------------------------
risk of loss with respect to the Assets will not pass to Purchaser until such
Assets are transferred at the Closing.

     12.16. Offset Rights. No offset rights shall be granted to any party to
            -------------
this Agreement with respect to any payment that such party may owe to any other
party to this Agreement against any payment that is owed to such party by such
other party.

     12.17. Certain Interpretive Matters and Definitions.
            --------------------------------------------

          (a) Unless the context otherwise requires, (i) all references to
Sections, Articles or Schedules are to Sections, Articles or Schedules of or to
this Agreement, (ii) each term defined in this Agreement has the meaning
assigned to it, (iii) each accounting term not otherwise defined in this
Agreement has the meaning assigned to it in accordance with GAAP, (iv) "or" is
disjunctive but not necessarily exclusive, (v) words in the singular include the
plural and vice versa, and (vi) the terms "Subsidiary" and "Affiliate" have the
meanings given to those terms in Rule 12b-2 of Regulation 12B under the 1934
Act. All references to "$" or dollar amounts will be to lawful currency of the
United States of America.

          (b) No provision of this Agreement will be interpreted in favor of, or
against, either of the parties hereto by reason of the extent to which either
such party or its counsel participated in the drafting thereof or by reason of
the extent to which any such provision is inconsistent with any prior draft
hereof or thereof.

                                       36
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                                          NextMedia Group, Inc.

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                          AJ Indoor Advertising, Inc.

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                          AJ Indoor International, Inc.

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________<PAGE>

                                                                   Exhibit 10.12

                            ASSET PURCHASE AGREEMENT

                                 by and between

                              BEAVERKETTLE COMPANY
                                   (as Seller)

                                       and

                              NEXTMEDIA GROUP, INC.
                                   (as Buyer)

                                   dated as of
                                  June 15, 2000
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                 Page
<S>          <C>                                                                                   <C>
Article 1        PURCHASE OF ASSETS................................................................1

    1.1      Transfer of Assets....................................................................1

             1.1.1    Licenses and Permits.........................................................1

             1.1.2    Tangible Personal Property...................................................1

             1.1.3    Contract Rights..............................................................2

             1.1.4    Intellectual Property........................................................2

             1.1.5    Books and Records............................................................2

             1.1.6    Manufacturers' and Vendors' Warranties.......................................2

             1.1.7    Owned Real Estate............................................................2

             1.1.8    Leased Real Estate...........................................................2

             1.1.9    Causes of Action.............................................................3

             1.1.10   Miscellaneous Assets.........................................................3

    1.2      Excluded Assets.......................................................................3

             1.2.1    Cash; Deposits and Accounts..................................................3

             1.2.2    Notes Receivable and Accounts Receivable.....................................3

             1.2.3    Ordinary Course of Business Dispositions.....................................3

             1.2.4    Contracts Terminated in the Ordinary Course of Business......................3

             1.2.5    Corporate Documents..........................................................3

             1.2.6    Certain Contracts of Insurance and Insurance Proceeds........................3

             1.2.7    Employee Benefit Plans.......................................................3

             1.2.8    Pre-Closing Tax Refunds......................................................3

             1.2.9    Certain Lots Near Transmitter Site...........................................4

             1.2.10   Sign Pro Operations and Related Assets.......................................4

             1.2.11   Name of Seller...............................................................4

             1.2.12   Broadcast Scripts and Recordings.............................................4

             1.2.13   Other Excluded Assets........................................................4

    1.3      Nonassignable Contracts...............................................................4

             1.3.1    Nonassignability.............................................................4

             1.3.2    Seller to Use Commercially Reasonable Best Efforts...........................4

             1.3.3    If Waivers or Consents Cannot Be Obtained....................................4
</TABLE>

                                       i
<PAGE>

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                                   (continued)

<TABLE>
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Article 2        ASSUMPTION OF OBLIGATIONS.........................................................5

    2.1      Assumption of Obligations.............................................................5

    2.2      Retained Liabilities..................................................................5

Article 3        CONSIDERATION.....................................................................6

    3.1      Delivery of Consideration.............................................................6

    3.2      Allocation of Consideration...........................................................7

    3.3      Allocations and Prorations............................................................7

Article 4        CLOSING...........................................................................8

    4.1      Closing...............................................................................8

Article 5        GOVERNMENTAL CONSENTS.............................................................9

    5.1      FCC Consent...........................................................................9

    5.2      FCC Applications......................................................................9

Article 6        REPRESENTATIONS AND WARRANTIES OF SELLER..........................................9

    6.1      Representations and Warranties of Seller..............................................9

             6.1.1    Organization, Good Standing, Etc.............................................9

             6.1.2    Authority....................................................................9

             6.1.3    Financial Statements........................................................10

             6.1.4    Absence of Undisclosed Liabilities..........................................10

             6.1.5    Compliance with Applicable Laws, FCC Matters................................11

             6.1.6    Litigation..................................................................12

             6.1.7    Insurance...................................................................12

             6.1.8    Real Estate.................................................................13

             6.1.9    Personal Property...........................................................13

             6.1.10   Liens and Encumbrances......................................................14

             6.1.11   Environmental Matters.......................................................14

             6.1.12   Taxes.......................................................................15

             6.1.13   Personnel...................................................................16

             6.1.14   Certain Agreements..........................................................17

             6.1.15   ERISA Compliance............................................................17

             6.1.16   Labor.......................................................................17
</TABLE>

                                       ii
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                                   (continued)

<TABLE>
<CAPTION>
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             6.1.17   Intellectual Property.......................................................18

             6.1.18   Absence of Certain Changes or Events........................................18

             6.1.19   Commission or Finder's Fees.................................................18

             6.1.20   Seller's Financial Condition................................................18

             6.1.21   Books and Records...........................................................18

             6.1.22   Barter Arrangements.........................................................19

             6.1.23   Interest in Competitors, Suppliers and Customers............................19

             6.1.24   No Third Party Options......................................................19

             6.1.25   Full Disclosure.............................................................19

Article 7        REPRESENTATIONS AND WARRANTIES OF BUYER..........................................19

    7.1      Representations and Warranties of Buyer..............................................19

             7.1.1    Organization and Standing...................................................19

             7.1.2    Authorization and Binding Obligation........................................19

             7.1.3    Qualification...............................................................20

             7.1.4    Absence of Conflicting Agreements or Required Consents......................20

             7.1.5    Litigation..................................................................20

             7.1.6    Commission or Finder's Fees.................................................21

             7.1.7    No Violation of Multiple Ownership Rules....................................21

             7.1.8    Full Disclosure.............................................................21

Article 8        COVENANTS OF SELLER..............................................................21

    8.1      Seller Covenants.....................................................................21

             8.1.1    Conduct Prior to the Closing Date...........................................21

             8.1.2    Access......................................................................23

             8.1.3    Satisfaction of Conditions; Closing.........................................23

             8.1.4    Sale of Acquired Assets; Negotiations.......................................23

             8.1.5    Notification................................................................24

             8.1.6    FCC Reports.................................................................24

             8.1.7    Updating of Information.....................................................24

             8.1.8    Response to Certain Actions.................................................24

             8.1.9    Interim Financial Statements................................................25
</TABLE>

                                      iii
<PAGE>

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                                   (continued)

<TABLE>
<CAPTION>
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<S>          <C>                                                                                  <C>
             8.1.10   Estoppel Certificates.......................................................25

             8.1.11   Covenant Not to Compete.....................................................25

             8.1.12   Shareholder Consents and Approvals..........................................25

             8.1.13   Financial Statements........................................................25

             8.1.14   Non-Solicitation............................................................26

             8.1.15   Excluded Lots...............................................................26

Article 9        COVENANTS OF BUYER...............................................................26

    9.1      Buyer Covenants......................................................................26

             9.1.1    Notification................................................................27

             9.1.2    Post-Closing Access.........................................................27

             9.1.3    Satisfaction of Conditions; Closing.........................................27

             9.1.4    Response to Certain Actions.................................................27

Article 10       JOINT COVENANTS..................................................................27

    10.1     FCC Applications.....................................................................27

    10.2     Confidentiality......................................................................28

    10.3     Cooperation..........................................................................28

    10.4     Bulk Sales Laws......................................................................28

    10.5     Public Announcements.................................................................28

    10.6     Condition of Real Estate.............................................................29

    10.7     WARN Act Compliance..................................................................29

Article 11       CONDITIONS OF CLOSING BY BUYER...................................................30

    11.1     Representations, Warranties and Covenants............................................30

    11.2     Compliance with Agreement............................................................30

    11.3     Closing Certificates.................................................................30

    11.4     Third Party Consents and Approvals...................................................30

    11.5     Governmental Consents................................................................30

    11.6     Shareholder Consents and Approvals...................................................31

    11.7     No Adverse Proceedings...............................................................31

    11.8     Closing Documents....................................................................31

    11.9     Release of Encumbrances..............................................................31
</TABLE>

                                       iv
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                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
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<S>          <C>                                                                                  <C>
    11.10    Legal Opinions.......................................................................31

    11.11    Earnest Money Letter of Credit.......................................................31

    11.12    No Material Adverse Change...........................................................31

    11.13    1445 Certificate.....................................................................31

    11.14    Indemnification Escrow Agreement.....................................................31

    11.15    Noncompetition and Nonsolicitation Side Letter.......................................31

Article 12       CONDITIONS OF CLOSING BY SELLER..................................................32

    12.1     Representations, Warranties and Covenants............................................32

    12.2     Compliance with Agreement............................................................32

    12.3     Closing Certificates.................................................................32

    12.4     Governmental Consents................................................................32

    12.5     No Adverse Proceedings...............................................................32

    12.6     Shareholder Approval.................................................................32

    12.7     Opinion..............................................................................32

    12.8     Closing Documents....................................................................32

    12.9     Indemnification Escrow Agreement.....................................................32

Article 13       DOCUMENTS TO BE DELIVERED AT THE CLOSING.........................................33

    13.1     Documents to be Delivered by Seller..................................................33

             13.1.1   Transfer Documents..........................................................33

             13.1.2   Certified Resolutions.......................................................33

             13.1.3   Officer's Certificate.......................................................33

             13.1.4   Opinion.....................................................................33

             13.1.5   Good Standing Certificates..................................................33

             13.1.6   Evidence of Release of Encumbrances.........................................33

             13.1.7   Indemnification Escrow Agreement............................................33

             13.1.8   Earnest Money Escrow Agreement..............................................33

             13.1.9   Other Documents.............................................................33

    13.2     Documents to be Delivered by Buyer...................................................34

             13.2.1   Purchase Price..............................................................34

             13.2.2   Assumption Agreement(s).....................................................34
</TABLE>

                                       v
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                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
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<S>          <C>                                                                                  <C>
             13.2.3   Certified Resolutions.......................................................34

             13.2.4   Officer's Certificate.......................................................34

             13.2.5   Opinion.....................................................................34

             13.2.6   Good Standing Certificates..................................................34

             13.2.7   Indemnification Escrow Agreement............................................34

             13.2.8   Other Documents.............................................................34

Article 14       SURVIVAL AND INDEMNIFICATION.....................................................34

    14.1     Survival of Representations, Warranties and Covenants................................34

    14.2     Limitations on Liability.............................................................35

    14.3     Indemnification......................................................................35

    14.4     Defense of Claims....................................................................36

    14.5     Exclusive Remedy.....................................................................38

Article 15       TRANSFER TAXES; FEES AND EXPENSES................................................38

    15.1     Expenses.............................................................................38

    15.2     Transfer Taxes and Similar Charges...................................................38

    15.3     Governmental Filing or Grant Fees....................................................38

Article 16       SPECIFIC PERFORMANCE.............................................................38

    16.1     Specific Performance.................................................................38

Article 17       TERMINATION......................................................................39

    17.1     Termination Rights...................................................................39

    17.2     Procedures and Effect of Termination.................................................40

    17.3     Termination Fees.....................................................................41

Article 18       RISK OF LOSS.....................................................................41

    18.1     Risk of Loss.........................................................................41

Article 19       MISCELLANEOUS PROVISIONS.........................................................42

    19.1     Certain Interpretive Matters and Definitions.........................................42

    19.2     Further Assurances...................................................................43

    19.3     Assignment...........................................................................43

    19.4     Amendments...........................................................................43

    19.5     Headings.............................................................................43
</TABLE>

                                       vi
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                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
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    <S>      <C>                                                                                  <C>
    19.6     Governing Law........................................................................43

    19.7     Notices..............................................................................43

    19.8     Schedules............................................................................45

    19.9     Entire Agreement.....................................................................45

    19.10    Severability.........................................................................45

    19.11    Counterparts.........................................................................45

    19.12    No Third-Party Rights................................................................45

    19.13    Attorneys' Fees......................................................................45
</TABLE>

                                      vii
<PAGE>

                                    Schedules
                                    ---------

Schedule 1.1.1      Stations Licenses
Schedule 1.1.2      Tangible Personal Property
Schedule 1.1.3      Contracts
Schedule 1.1.4      Intellectual Property
Schedule 1.1.7      Owned Real Estate
Schedule 1.1.8      Leased Real Estate
Schedule 1.2.9      Certain Lots Near Transmitter Site
Schedule 1.2.13     Excluded Assets
Schedule 6.1.1      State Qualifications
Schedule 6.1.4      Liabilities
Schedule 6.1.5      Compliance With Laws
Schedule 6.1.6      Litigation
Schedule 6.1.8      Defects in Leaseholds on Leased Real Estate
Schedule 6.1.11     Environmental Matters
Schedule 6.1.12     Taxes
Schedule 6.1.13     Personnel
Schedule 6.1.15     ERISA Compliance and Employee Benefit Plans
Schedule 6.1.16     Labor Compliance
Schedule 6.1.22     Barter Arrangements
Schedule 6.1.23     Interest in Competitors, Suppliers and Customers
Schedule 7.1.3      Qualification
Schedule 7.1.4      Conflicting Agreements and Required Consents

                                    Exhibits
                                    --------

Exhibit A           Form of Indemnification Escrow Agreement
Exhibit B-1         Form of Opinion of Baker & Hostetler LLP
Exhibit B-2         Form of Opinion of Seller's Regulatory Counsel
Exhibit C           Form of Opinion of Weil, Gotshal & Manges LLP
Exhibit D           Form of Earnest Money Escrow Agreement

                                      viii
<PAGE>

                                  Defined Terms
                                  -------------

Defined Terms                                                           Section
-------------                                                           -------

Affiliate................................................................. 19.1
Agreement............................................................  Preamble
Allocation..................................................................3.2
Assumed Liabilities.......................................................  2.1
business day..............................................................3.3.2
BIA.........................................................................3.2
BIA Appraisal...............................................................3.2
Buyer................................................................  Preamble
Buyer Notice...............................................................10.6
Closing...................................................................  4.1
Closing Date..............................................................  4.1
COBRA....................................................................2.2(g)
Code......................................................................  3.2
Communications Act....................................................... 6.1.5
Contracts...............................................................  1.1.3
Direct Claim............................................................14.4(d)
Earnest Money Escrow Agent.............................................. 17.3.2
Earnest Money Escrow Agreement...........................................17.3.2
Earnest Money Letter of Credit.......................................... 17.3.2
Effective Time..........................................................  3.3.1
Employee Benefit Plans.................................................. 6.1.15
Environmental Costs and Liabilities.................................. 6.1.11(f)
Environmental Laws................................................... 6.1.11(f)
ERISA................................................................... 6.1.15
ERISA Group............................................................. 6.1.15
Exchange Act............................................................ 8.1.13
Excluded Assets...........................................................  1.2
Excluded Lots............................................................8.1.15
FAA................................................................... 6.1.5(b)
FCC.....................................................................  1.1.1
FCC Applications..........................................................  5.2
FCC Consents..............................................................  5.1
Final Order..............................................................  11.5
FMLA.....................................................................2.2(g)
GAAP..................................................................... 6.1.3
Governmental Entity...................................................... 6.1.2
Hazardous Substances................................................. 6.1.11(d)
Indemnifiable Losses....................................................14.2(a)
Indemnification Escrow Agent.............................................3.1(a)

                                       ix
<PAGE>

Indemnification Escrow Agreement.........................................3.1(a)
Indemnifying Party......................................................14.2(a)
Indemnitee..............................................................14.2(a)
Indemnity Payment.......................................................14.2(a)
Independent Auditor.....................................................  3.3.2
Initial Purchase Price...................................................3.1(a)
Intellectual Property...................................................  1.1.4
knowledge.................................................................6.1.5
Leased Real Estate......................................................  1.1.8
Liens................................................................... 6.1.10
multi employer plan......................................................6.1.15
Nonassignable Right.......................................................1.3.1
Owned Real Estate.......................................................  1.1.7
Predecessor.......................................................... 6.1.11(a)
Purchase Price.........................................................  3.1(a)
Real Estate.............................................................  1.1.8
Retained Liabilities......................................................  2.2
Securities Act.......................................................... 8.1.13
Seller...............................................................  Preamble
Seller's Financial Statements............................................ 6.1.3
Sign Pro Premise.........................................................1.2.10
Specified Event........................................................ 18.1(b)
Stations.............................................................  Recitals
Stations Assets...........................................................  1.1
Stations Licenses.......................................................  1.1.1
Studies................................................................... 10.6
Tax.................................................................. 6.1.12(h)
Taxes................................................................ 6.1.12(h)
Tax Return........................................................... 6.1.12(h)
Third Party..............................................................8.1.15
Third Party Claim.......................................................14.2(a)
Time Brokerage Agreement.................................................3.1(b)
Trade Agreements.......................................................  3.1(b)
Trade Imbalance..........................................................3.1(b)
Trade Liability..........................................................3.1(b)
Trade Receivables........................................................3.1(b)
Transfer Documents.......................................................13.1.1
WARN Act.................................................................2.2(g)

                                       x
<PAGE>

                            ASSET PURCHASE AGREEMENT

          THIS ASSET PURCHASE AGREEMENT (this "Agreement"), made as of June 15,
                                               ---------
2000, is by and between Beaverkettle Company, an Ohio corporation ("Seller"),
                                                                    ------
and NextMedia Group, Inc., a Delaware corporation ("Buyer").
                                                    -----

                                   WITNESSETH:

          WHEREAS, Seller owns certain assets that are used in connection with
the business and operations of radio stations WHBC 94.1 FM and WHBC 1480 AM in
Canton, Ohio (collectively, the "Stations"); and
                                 --------

          WHEREAS, Seller desires to sell the Stations, and Buyer desires to
purchase substantially all of the assets of Seller used in connection with the
business and operations of the Stations in accordance with the terms and
conditions set forth in this Agreement;

          NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and agreements hereinafter set forth, the parties hereto,
intending to be legally bound, hereby agree as follows:

                                    ARTICLE 1

                               PURCHASE OF ASSETS
                               ------------------

     1.1 Transfer of Assets. On the terms and subject to the conditions
         ------------------
contained in this Agreement (including, without limitation, the terms and
conditions contained in Section 1.2), on the Closing Date (as defined in Section
                        -----------                                      -------
4.1), Seller shall assign, transfer, convey and deliver to Buyer and Buyer shall
---
acquire and assume from Seller, all of the right, title and interest of Seller
in and to all of the following assets, properties, interests and rights of
Seller (collectively, the "Stations Assets") free and clear of all Liens (as
                           ---------------
defined in Section 6.1.10):
                   ------

          1.1.1 Licenses and Permits. To the extent transferable, all of
                --------------------
Seller's rights in and to the licenses, permits and other authorizations issued
to Seller, by any Governmental Entity (as defined in Section 6.1.2), including
                                                     -------------
those issued by the Federal Communications Commission (the "FCC") (hereinafter
                                                            ---
referred to as the "Stations Licenses"), used in connection with the operation
                    -----------------
of the Stations, along with renewals or modifications of such items between the
date hereof and the Closing Date, including, but not limited to, those listed in
Schedule 1.1.1 hereto;
--------------

          1.1.2 Tangible Personal Property. All equipment, office furniture and
                --------------------------
fixtures, office materials and supplies, inventory, spare parts and all other
tangible personal property of every kind and description, and Seller's rights
therein, owned, leased or held by Seller and used in connection with the
business or operations of the Stations, including, but not limited to, those
items described or listed in Schedule 1.1.2 hereto, together with any
                             --------------
replacements thereof or improvements or additions thereto made
<PAGE>

between the date hereof and the Closing Date, and less any retirements or
dispositions thereof made between the date hereof and the Closing Date in the
ordinary course of Seller's business consistent with past practices;

          1.1.3 Contract Rights. All of Seller's rights in and under those
                ---------------
contracts, agreements, leases and legally binding contractual rights relating to
the business or operations of the Stations as of the Closing Date which are
listed in Schedule 1.1.3 attached hereto ("Contracts"), subject to Sections 1.2,
          --------------                   ---------               -------------
2.2 and 8.1.1 hereto;
---     -----

          1.1.4 Intellectual Property. All of Seller's rights in and to all call
                ---------------------
letters, foreign and domestic letter patents, patents, patent licenses,
trademarks, trade names, service marks, franchises, copyrights, Internet domain
names, including registrations and applications for registration of any of them,
URL addresses, computer software programs and licenses, know-how licenses, all
programming material of whatever form or nature, jingles, slogans, the Stations'
logos and all other logos or licenses to use same, all trade secrets, technical
knowledge, know-how, confidential proprietary information and all other
intangible property rights of Seller, which are used or useful in connection
with the business or operations of the Stations, including, but not limited to,
those listed in Schedule 1.1.4 hereto (collectively, the "Intellectual
                --------------                            ------------
Property"), together with any associated goodwill and any additions thereto
--------
between the date hereof and the Closing Date;

          1.1.5 Books and Records. All of Seller's rights in and to all of the
                -----------------
files, documents, records, and books of account relating to the business or
operations of the Stations or to the Stations Assets, including, without
limitation, each Station's public files, programming information and studies,
technical information and engineering data, news and advertising studies or
consulting reports, marketing and demographic data, sales correspondence, lists
of advertisers, promotional materials, credit and sales reports and filings with
the FCC, originals of all written Contracts to be assigned hereunder, logs,
software programs and books and records relating to personnel, financial,
accounting, operational and technical matters;

          1.1.6 Manufacturers' and Vendors' Warranties. All of Seller's rights
                --------------------------------------
under manufacturers' and vendors' warranties relating to items included in the
Stations Assets and all similar rights against third parties relating to items
included in the Stations Assets;

          1.1.7 Owned Real Estate. All real property owned by Seller, together
                -----------------
with all appurtenant easements thereunto, and all structures, fixtures and
improvements located thereon used in connection with the business or operations
of the Stations as more fully described in Schedule 1.1.7 hereto, together with
                                           --------------
any additions thereto between the date hereof and the Closing Date ("Owned Real
                                                                     ----------
Estate");
------

          1.1.8 Leased Real Estate. All rights and interests of Seller under any
                ------------------
and all of the real property leases entered into in connection with the business
or operations of the Stations (the "Leased Real Estate," and, together with the
                                    ------------------
Owned Real

                                       2
<PAGE>

Estate, the "Real Estate") which Leased Real Estate is more fully described in
             -----------
Schedule 1.1.8;
--------------

          1.1.9 Causes of Action. All of Seller's rights in and to all causes of
                ----------------
action relating to the business or operations of the Stations, including,
without limitation, any causes of action for any past infringement on any of the
Intellectual Property; and

          1.1.10 Miscellaneous Assets. All such other assets, properties,
                 --------------------
interests and rights owned by Seller that are used in connection with the
business or operations of the Stations or that are located as of the Closing
Date on the Real Estate, except for Excluded Assets (as defined in Section 1.2).
                                                                   -----------

     1.2 Excluded Assets. Notwithstanding anything to the contrary contained
         ---------------
herein, it is expressly understood and agreed that the Stations Assets shall not
include any of the following assets or any right, title or interest therein (the
"Excluded Assets"):
 ---------------

          1.2.1 Cash; Deposits and Accounts. All cash, checks, drafts,
                ---------------------------
marketable securities and cash equivalents of Seller on hand and/or in banks,
all bank or trust accounts in which any of the foregoing may be deposited and
all deposits, including utility deposits;

          1.2.2 Notes Receivable and Accounts Receivable. All notes receivable
                ----------------------------------------
and accounts receivable of Seller;

          1.2.3 Ordinary Course of Business Dispositions. All tangible and
                ----------------------------------------
intangible personal property of Seller disposed of or consumed in the ordinary
course of business of Seller consistent with past practices between the date
hereof and the Closing Date, as permitted hereunder;

          1.2.4 Contracts Terminated in the Ordinary Course of Business. All
                -------------------------------------------------------
Contracts that have terminated or expired on or prior to the Closing Date in the
ordinary course of business of Seller;

          1.2.5 Corporate Documents. Seller's corporate seals, minute books,
                -------------------
charter documents, corporate stock record books and such other books and records
as pertain to the organization, existence or share capitalization of Seller and
duplicate copies of such financial records as are necessary to enable Seller to
file its Tax Returns (as defined in Section 6.1.12(h)) and reports;
                                    -----------------

          1.2.6 Certain Contracts of Insurance and Insurance Proceeds. Contracts
                -----------------------------------------------------
of insurance, and all insurance proceeds arising out of or related thereto,
including the cash surrender value relating to any contract of insurance;

          1.2.7 Employee Benefit Plans. The Employee Benefit Plans (as defined
                ----------------------
in Section 6.1.15) and the assets thereof;
   --------------

          1.2.8 Pre-Closing Tax Refunds. All Tax (as defined in Section
                -----------------------                         -------
6.1.12(h)) refunds relating to all periods prior to the Closing Date;
---------

                                       3
<PAGE>

          1.2.9 Certain Lots Near Transmitter Site . The property located near
                ----------------------------------
Seller's transmitter site which is more particularly described on Schedule 1.2.9
                                                                  --------------
attached hereto.

          1.2.10 Sign Pro Operations and Related Assets. All of the personal
                 --------------------------------------
property located at 7201 Whipple Avenue N.W., North Canton, Ohio 44720 (the
"Sign Pro Premise") that is used in connection with the operation of the Sign
 ----------------
Pro business, the lease agreement relating the Sign Pro Premise, all causes of
action relating to the Sign Pro business, all contracts and agreements relating
to the Sign Pro business and all other assets relating to the Sign Pro business;

          1.2.11 Name of Seller. The name "Beaverkettle", or any variation
                 --------------
thereof;

          1.2.12 Broadcast Scripts and Recordings. Any broadcast scripts and
                 --------------------------------
recordings relating to Seller's operation of the Stations prior to the Closing
Date; and

          1.2.13 Other Excluded Assets. Those specific assets identified on the
                 ----------------------
Excluded Assets Schedule attached to this Agreement as Schedule 1.2.13.
                                                       ---------------

     1.3 Nonassignable Contracts.
         -----------------------

          1.3.1 Nonassignability. Without limiting or otherwise affecting the
                ----------------
rights of Buyer pursuant to Articles 11 or 14 of this Agreement, to the extent
                            -----------    --
that any Contract to be assigned pursuant to the terms of Section 1.1.3 is not
                                                          -------------
capable of being assigned without the consent, approval or waiver of a third
person or entity (including, without limitation, a Governmental Entity), or if
such assignment or attempted assignment would constitute a breach thereof or a
violation of any law or regulation (each, a "Nonassignable Right"), nothing in
                                             -------------------
this Agreement will constitute an assignment or require the assignment thereof,
except to the extent provided in this Section 1.3.
                                      ------------

          1.3.2 Seller to Use Commercially Reasonable Best Efforts.
                --------------------------------------------------
Notwithstanding anything to the contrary contained herein, Seller shall not be
obligated to assign to Buyer any rights or obligations in, to or under any of
the Nonassignable Rights without first having obtained all consents, approvals
and waivers necessary for such assignment; provided, however, that Seller shall
use commercially reasonable best efforts to obtain all such consents, approvals
and waivers prior to the Closing (as defined in Section 4.1) and, if the Closing
                                                -----------
occurs without certain consents being obtained, Seller shall use commercially
reasonable best efforts after the Closing Date to obtain all such consents,
approvals and waivers. Buyer acknowledges and agrees that it shall cooperate
with Seller in Seller's efforts to obtain all required consents, approvals and
waivers.

          1.3.3 If Waivers or Consents Cannot Be Obtained. To the extent that
                -----------------------------------------
any consent, approval or waiver required for the assignment of any Nonassignable
Right cannot be obtained by Seller either prior to or after the Closing, then
Seller shall use commercially reasonable best efforts to: (i) provide to Buyer
the financial and business benefits of such Nonassignable Right and (ii)
enforce, at the request of Buyer, for the account of Buyer, any rights of Seller
arising from any such Nonassignable Right

                                       4
<PAGE>

(including, without limitation, the right to elect to terminate in accordance
with the terms thereof upon the advice of Buyer). Buyer acknowledges and agrees
that it shall use commercially reasonable best efforts to perform any portion of
a Nonassignable Right, the financial and business benefits of which are being
provided to Buyer in accordance with clause (i) of the preceding sentence, to
the same extent as would be required of Seller under the terms of such
Nonassignable Right (i.e., in the same (or as similar as practicable) manner and
time, and with the same quality, required of Seller).

                                    ARTICLE 2

                            ASSUMPTION OF OBLIGATIONS
                            -------------------------

     2.1 Assumption of Obligations. Subject to the provisions of this Section
         -------------------------                                    -------
2.1 and Section 2.2, on the Closing Date, Buyer shall assume the obligations of
---     -----------
Seller arising or to be performed after the Closing Date under the Contracts in
effect on the Closing Date and all other liabilities and obligations that arise
from the ownership or operation of the Stations Assets after the Effective Time
(as such term is defined hereinafter in Section 3.3.1). All of the foregoing
                                        -------------
liabilities and obligations shall be referred to herein collectively as the
"Assumed Liabilities."
 -------------------

     2.2 Retained Liabilities. Notwithstanding anything contained in this
         --------------------
Agreement to the contrary, Buyer does not assume or agree to pay, satisfy,
discharge or perform, and will not be deemed by virtue of the execution and
delivery of this Agreement or any document delivered at the execution of this
Agreement, or as a result of the consummation of the transactions contemplated
by this Agreement, to have assumed, or to have agreed to pay, satisfy, discharge
or perform, any liability or obligation of Seller other than the Assumed
Liabilities, including, without limitation, any of the following liabilities or
obligations of Seller (the "Retained Liabilities"):
                            --------------------

               (a) all obligations or liabilities of Seller or any predecessor
or Affiliate (as defined in Section 19.1) of Seller which in any way relate to,
                            ------------
or arise out of, any of the Excluded Assets;

               (b) other than Taxes expressly allocated pursuant to other
provisions of this Agreement, any and all Tax liabilities of Seller;

               (c) all liabilities or obligations of Seller owed to Affiliates
of Seller;

               (d) all liabilities or obligations of Seller for borrowed money
or for interest on such borrowed money;

               (e) all liabilities or obligations arising out of any breach by
Seller or any predecessor or Affiliate of Seller of any of the terms or
conditions of any provision of any Contract;

               (f) all liabilities or obligations of Seller or any predecessor
or Affiliate of Seller resulting from, caused by or arising out of, any
violation of law;

                                       5
<PAGE>

               (g) all claims, liabilities, or obligations of Seller as an
employer, including, without limitation, liabilities for wages, supplemental
unemployment benefits, vacation benefits, severance benefits, retirement
benefits, Federal Consolidated Omnibus Budget Reconciliation Act of 1985
("COBRA") benefits, Federal Family and Medical Leave Act of 1993 ("FMLA")
  -----                                                            ----
benefits, Federal Workers Adjustment and Retraining Notification Act ("WARN
                                                                       ----
Act") obligations and liabilities, or any other employee benefits, withholding
---
Tax liabilities, workers' compensation, or unemployment compensation benefits or
premiums, hospitalization or medical claims, occupational disease or disability
claims, or other claims attributable in whole or in part to employment or
termination by Seller or arising out of any labor matter involving Seller as an
employer, and any claims, liabilities and obligations arising from or relating
to the Employee Benefit Plans;

               (h) all claims, liabilities, losses, damages, or expenses
relating to any litigation, proceeding, or investigation of any nature arising
out of the business or operations of the Stations prior to the Effective Time,
including, without limitation, any claims against or any liabilities for injury
to, or death of, persons or damage to or destruction of property, any workers'
compensation claims, and any warranty claims;

               (i) except as may otherwise be provided herein, any accounts
payable, other indebtedness, obligations or accrued liabilities of Seller;

               (j) all claims, liabilities, losses, damages, expenses or
obligations resulting from the failure to comply with, or imposed pursuant to,
any Environmental Law (as defined in Section 6.1.11(f)) or resulting from the
                                     -----------------
use, presence, generation, storage, treatment, transportation, handling,
disposal, emission or release of Hazardous Substances (as hereinafter defined in
Section 6.1.11(d) hereof), solid wastes, and gaseous matters by Seller and by
----------------
any other person in relation to Seller or the Stations to the extent related to,
arising from or otherwise attributable to acts or omissions prior to or
conditions existing as of the Effective Time, including, without limitation, any
liability or obligation for cleaning up waste disposal sites from or related to
acts or omissions prior to the Effective Time; and

               (k) all fees and expenses incurred by Seller in connection with
negotiating, preparing, closing, and carrying out this Agreement and the
transactions contemplated by this Agreement, including, without limitation, the
fees and expenses of Seller's attorneys, accountants, consultants and brokers.

                                    ARTICLE 3

                                  CONSIDERATION
                                  -------------

     3.1 Delivery of Consideration. (a) In exchange for the Stations Assets,
         -------------------------
Buyer shall, at the Closing (as defined in Section 4.1) deliver to Seller,
                                           -----------
except as provided below, the sum of Forty-Three Million Five Hundred Thousand
Dollars ($43,500,000) (the "Initial Purchase Price"). The Initial Purchase Price
                            ----------------------
shall be reduced at Closing, dollar for dollar, by the amount of any accrued
vacation liability assumed by Buyer

                                       6
<PAGE>

pursuant to the terms and conditions contained in Section 2(c) of the Time
                                                  ------------
Brokerage Agreement (as defined below). The Initial Purchase Price, as so
adjusted, shall be referred to herein as the "Purchase Price." At Closing, Buyer
                                              --------------
shall remit the Purchase Price to Seller by wire transfer of immediately
available funds to an account or accounts designated by Seller; provided,
                                                                --------
however, that notwithstanding anything to the contrary contained in this
-------
Agreement, a portion of the Purchase Price equal to $500,000 will be paid by
Buyer into escrow pursuant to an Indemnification Escrow Agreement among Buyer,
Seller and the escrow agent named therein (the "Indemnification Escrow Agent"),
                                                ----------------------------
in substantially the form attached hereto as Exhibit A (the "Indemnification
                                             ---------       ---------------
Escrow Agreement").
----------------

               (b) To the extent that the value of the aggregate liability (the
"Trade Liability") of the Stations at the commencement date of the Time
 ---------------
Brokerage Agreement contemplated to be entered into by the parties hereto with
respect to the operation of the Stations prior to the Closing Date (the "Time
                                                                         ----
Brokerage Agreement") under the Trade Agreements (as defined below) exceeds by
-------------------
$25,000 the aggregate value of the goods and services to be received by the
Stations or Buyer after the commencement date of the Time Brokerage Agreement
under the Trade Agreements (the "Trade Receivables"), the Purchase Price shall
                                 -----------------
be reduced by the amount over $25,000 by which the Trade Liabilities exceed the
Trade Receivables (the "Trade Imbalance"). For the purposes of this Agreement,
                        ---------------
"Trade Agreements" shall mean Contracts for consideration other than cash, such
 ----------------
as merchandise, services or promotional consideration.

     3.2 Allocation of Consideration. Within thirty (30) days after the
         ---------------------------
execution of this Agreement, Seller and Buyer shall negotiate in good faith an
allocation of the Purchase Price among the Stations Assets (the "Allocation").
                                                                 ----------
If the Allocation is not agreed upon within thirty (30) days after the execution
of this Agreement, Buyer and Seller, by joint letter, will order an appraisal
(the "BIA Appraisal") of the Stations Assets from Broadcast Investments Analysts
      -------------
("BIA"), and BIA will determine the Allocation. The BIA Appraisal, if required,
  ---
shall be provided to Seller within forty-five (45) days after it is ordered. The
Allocation shall comply with Section 1060 of the Internal Revenue Code of 1986,
as amended (the "Code"), and Treasury Regulations promulgated thereunder.
                 ----
Subject to the requirements of applicable Tax law, all Tax Returns and reports
including, without limitation, Form 8594, filed by Buyer and Seller shall be
prepared consistently with the Allocation and neither Buyer nor Seller shall
take any position contrary thereto. The cost of the BIA Appraisal, if required,
shall be borne equally between Buyer and Seller.

     3.3 Allocations and Prorations.
         --------------------------

          3.3.1 Subject to the terms and conditions of the Time Brokerage
Agreement, the business and the operations of the Stations and the income and
expenses attributable thereto through 12:01 a.m. on the Closing Date (the
"Effective Time") shall be for the account of Seller and thereafter shall be for
 --------------
the account of Buyer. Expenses for goods and services received both before and
after the Effective Time, utilities charges, ad valorem, real estate, property
and other Taxes (other than income Taxes, which shall be

                                       7
<PAGE>

Seller's sole responsibility for all taxable periods ending prior to and
including the Effective Time, and those Taxes arising from the sale and transfer
of the Stations Assets, which, in the case of transfer and other similar Taxes,
shall be paid as set forth in Section 15.2), income and expenses under the
                              ------------
Contracts (other than Trade Agreements), prepaid expenses, music and other
license fees (including any retroactive adjustments thereof), and rents and
similar prepaid and deferred items shall be prorated between Seller and Buyer in
accordance with the foregoing. Notwithstanding the foregoing, no proration shall
be made with respect to any prepaid expense or other deferred item unless Buyer
will receive a benefit in respect of such prepayment or deferral after the
Effective Time. For purposes of this Section 3.3.1, ad valorem and other real
                                     -------------
estate Taxes shall be apportioned on the basis of the Taxes assessed for the
most recently-completed calendar year, with a reapportionment as promptly as
practicable after the Tax rates and real property valuations for the calendar
year in which the Closing occurs can be ascertained. Notwithstanding anything in
this Section 3.3.1 to the contrary, no proration will be made hereunder with
     -------------
respect to any item accounted for pursuant to Section 3.1(b).
                                              --------------

          3.3.2 Allocation and proration of the items set forth in Section 3.3.1
                                                                   -------------
shall be made by Buyer and a statement thereof shall be given to Seller within
thirty (30) days after the Closing Date. Seller shall give written notice of any
objection to such statement within twenty (20) business days after receipt of
such statement, detailing the reason for such objection and stating the amount
of Seller's proposed final allocation and proration. If a timely objection is
made and the parties cannot reach agreement within thirty (30) days after
receipt of the objection as to the amount of the final allocation and proration,
the matter shall be referred to the Canton, Ohio office of Ernst & Young, LLP
(the "Independent Auditor") to resolve the matter, whose decision will be final
      -------------------
and binding on the parties, and whose fees and expenses shall be borne by Buyer
and Seller in accordance with the following: each party shall pay an amount
equal to the sum of all fees and expenses of the Independent Auditor on a
proportional basis taking into account the amount of the net allocation and
proration proposed by each of Buyer and Seller and the amount of the final
allocation and proration determined by the Independent Auditor (for example, if
Buyer proposed a payment of $10 to Seller, Seller proposed a payment of $100,
and the Independent Auditor proposed a payment of $30, Buyer would pay 20/90ths
of the Independent Auditor's fees and Seller would pay 70/90ths of those fees
based on the $90 in dispute between the parties). For the purposes of this
Agreement, "business day" shall mean any day other than a Saturday, a Sunday or
            ------------
a day on which banking institutions in Canton, Ohio are not required to be open.

                                    ARTICLE 4

                                     CLOSING
                                     -------

     4.1 Closing. The consummation of the transactions contemplated herein (the
         -------
"Closing") shall occur: (a) within ten (10) business days after the FCC Consents
 -------
(as defined in Section 5.1 hereto) to the assignments of the Stations Licenses
               -----------
have become Final Orders (as defined in Section 11.5 hereto) or (b) such other
                                        ------------
date to which the parties hereto shall agree in writing after each of the terms
and conditions set forth in Articles 11 and 12 has been fulfilled or waived in
                            -----------     --
writing by the party entitled to waive such term or

                                       8
<PAGE>

condition (the "Closing Date"). The Closing shall be held at 10:00 am (eastern
                ------------
time) in the offices of Baker & Hostetler LLP, 3200 National City Center,
Cleveland, Ohio, or at such other place as the parties hereto may agree.

                                    ARTICLE 5

                              GOVERNMENTAL CONSENTS
                              ---------------------

     5.1 FCC Consent. It is specifically understood and agreed by Buyer and
         -----------
Seller that the Closing, the assignments of the Stations Licenses and the
transfer of the Stations Assets are expressly conditioned on, and are subject
to, the prior consent and approval of the FCC ("FCC Consents").
                                                ------------

     5.2 FCC Applications. Within ten (10) business days after the execution of
         ----------------
this Agreement, or such earlier time as shall be agreed to by all of the parties
hereto, Buyer and Seller shall file applications with the FCC for the FCC
Consents ("FCC Applications").
           ----------------

                                    ARTICLE 6

                    REPRESENTATIONS AND WARRANTIES OF SELLER
                    ----------------------------------------

     6.1 Representations and Warranties of Seller. Seller hereby makes the
         ----------------------------------------
following representations and warranties to Buyer:

          6.1.1 Organization, Good Standing, Etc. (a) Seller is a corporation
                --------------------------------
validly existing and in good standing under the laws of the State of Ohio, has
all requisite corporate power and authority to own, lease, operate or otherwise
hold the Stations Assets owned, leased or otherwise held by it and to carry on
the operations of the Stations as now being conducted and is duly qualified to
do business in each jurisdiction in which its operation of the Stations or its
ownership or leasing of property makes such qualification necessary. Such of the
foregoing states are listed on Schedule 6.1.1 hereto.

               (b) Seller has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement by Seller and the
consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action on the part of Seller other than
approval by its shareholders. This Agreement has been duly executed and
delivered by Seller and, assuming the due execution and delivery of this
Agreement by Buyer, constitutes the legal, valid and binding obligation of
Seller, enforceable against Seller in accordance with its terms, except as may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights in general and
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

          6.1.2 Authority. Assuming the consents identified by this Section
                ---------                                           -------
6.1.2 and Section 6.1.14 are obtained, neither the execution and delivery of
-----     --------------
this Agreement nor

                                       9
<PAGE>

the consummation of the transactions contemplated hereby by Seller shall: (i)
violate, conflict with or result in any breach of any provision of the articles
of incorporation or the code of regulations of Seller, (ii) violate, conflict
with or result in a violation or breach of, or constitute a default (with or
without due notice or lapse of time or both) under, or permit the termination
of, or result in the acceleration of, or entitle any party to accelerate
(whether as a result of the sale of the Stations Assets or otherwise) any
obligation, or result in the loss of any benefit, or give rise to the creation
of any Lien upon any of the properties or assets of Seller or any of its
subsidiaries under any of the terms, conditions or provisions of any loan or
credit agreement, note, bond, mortgage, indenture or deed of trust, or any
license, lease, agreement or other instrument or obligation to which any of them
are a party or by which they or any of their properties or assets may be bound
or affected, or (iii) violate any order, writ, judgment, injunction, decree,
statute, rule or regulation, of any court, administrative agency or commission
or other governmental authority or instrumentality (a "Governmental Entity")
                                                       -------------------
applicable to Seller or to any of its properties or assets, except for those
violations that individually or in the aggregate could not reasonably be
expected to have a material adverse effect on Seller's ability to consummate the
transactions contemplated by this Agreement. No consent, approval, order or
authorization of, or registration, declaration or filing with, any Governmental
Entity is required by or with respect to Seller in connection with the execution
and delivery of this Agreement by Seller or the consummation by Seller of the
transactions contemplated hereby, except for: (i) the FCC Consents and (ii)
those other consents that individually or in the aggregate could not reasonably
be expected to have a material adverse effect on Seller's ability to consummate
the transactions contemplated by this Agreement.

          6.1.3 Financial Statements. Seller has previously provided Buyer with
                --------------------
copies of the Stations' (a) audited balance sheets at December 31, 1998 and 1999
and the related statements of income and cash flow for the fiscal years then
ended, and (b) internally prepared balance sheets at March 31, 1999 and 2000,
and the related statement of income for the periods then ended (such financial
statements collectively being referred to herein as the "Seller's Financial
                                                         ------------------
Statements"). The Seller's Financial Statements were prepared in accordance with
----------
generally accepted accounting principles applied on a consistent basis
throughout the periods covered thereby ("GAAP") and present fairly, in all
                                         ----
material respects, the financial position, results of operations and changes in
cash flows of the Stations as of such dates and for the periods then ended,
except that Seller's Financial Statements for the period ended March 31, 1999
and 2000 do not include cash flow statements, notes to the financial statements
or year-end audit adjustments.

          6.1.4 Absence of Undisclosed Liabilities. Except as set forth on
                ----------------------------------
Schedule 6.1.4 hereto, there are no material liabilities of Seller of any kind
--------------
whatsoever with respect to the Stations (whether absolute, accrued, contingent
or otherwise, and whether due or to become due) that are required to be
reflected on, or disclosed in the notes to, a consolidated balance sheet of
Seller prepared in accordance with GAAP, other than liabilities and obligations
(a) provided for or reserved against in Seller's Financial Statements or (b)
arising after March 31, 2000 in the ordinary course of business and consistent
with past practices.

                                       10
<PAGE>

          6.1.5 Compliance with Applicable Laws, FCC Matters. (a) Except as
                --------------------------------------------
permitted or contemplated hereby, the business and operations of the Stations
have been, and now are being, conducted in compliance in all material respects
with the Stations Licenses, each law, ordinance, regulation, judgment, decree,
injunction, rule or order of the FCC or any other Governmental Entity binding on
Seller, the Stations or their respective properties or assets. No investigation
or review by any Governmental Entity with respect to Seller or the Stations is
pending or, to Seller's knowledge, threatened. Without limiting the generality
of the foregoing, Seller has complied in all material respects with the
Communications Act of 1934, as amended (the "Communications Act"), all rules,
                                             ------------------
regulations and written policies of the FCC thereunder, all obligations with
respect to equal opportunity under applicable law and the FCC's policy on
exposure to radio frequency radiation applicable to the Stations. No renewal of
any Stations License would constitute a major environmental action under the
rules of the FCC. Access to the Stations' transmission facilities are restricted
in accordance with the policies of the FCC. In addition, Seller has duly and
timely filed, or caused to be filed, with the appropriate Governmental Entities
all reports, statements, documents, registrations, filings or submissions with
respect to the business or operations of the Stations and the ownership thereof,
including, without limitation, applications for renewal of authority required to
be filed by applicable law, except where failure to so file is not reasonably
likely to have a material adverse effect in the business and operations of the
Stations. All such filings complied in all material respects with applicable
laws when made and, to the Seller's knowledge, no deficiencies have been
asserted with respect to any such filings. Seller has duly and timely paid, or
caused to be paid, to the appropriate Governmental Entities, all fees associated
with any such filings. Seller has duly and timely paid, or caused to be paid,
all annual regulatory fees to the appropriate Governmental Entities as required
by applicable law. All of the material required by 47 C.F.R. Section 73.3526 to
be kept in the public inspection files of the Stations is in such files. Except
as otherwise disclosed on Schedule 6.1.5, Seller has no knowledge of any fact or
                          --------------
circumstance relating to Seller or the Stations arising from noncompliance with
the Communications Act, or the rules, regulations or written policies of the FCC
in effect on the date of this Agreement that could reasonably be expected to (i)
disqualify Seller from assigning the Stations Licenses to Buyer or (ii) prevent
or delay the consummation by the parties of the transactions contemplated by
this Agreement. The ground system of the AM Station is as specified in the
current license or applicable construction permit for the AM Station (including
with respect to the number, length and burial depth of radials). For the
purposes of this Agreement, the term "knowledge", when used to refer to the
                                      ---------
knowledge of Seller, shall mean the actual knowledge of any of the following
individuals with respect to any matter with which such individual is charged
with knowledge: Theodore V. Boyd, Chairman of the Board of Directors of Seller,
Ray Hexamer, President of Seller and General Manager of the Stations, Jackman S.
Vodrey, Secretary, Treasurer and General Counsel of Seller, William Glasser,
Chief Engineer of the Stations and Wayne Coy, Jr. of Cohn and Marks, Seller's
FCC counsel.

               (b) Schedule 1.1.1 lists (A) all licenses, permits or other
                   --------------
authorizations issued to Seller by the FCC relating to the Stations and held by
Seller as of the date of this Agreement and (B) all licenses, permits or
authorizations issued to Seller by any other Governmental Entities which are
material to the business or operations of

                                       11
<PAGE>

the Stations and held by Seller as of the date of this Agreement. Such licenses,
permits and authorizations, and all applications for modification, extension or
renewal thereof or for new licenses, permits, permissions or authorizations that
would be material to the business or operations of the Stations are collectively
referred to herein as the Stations Licenses (as further defined in Section
                                                                   -------
1.1.1), each of which is in full force and effect. All towers and other
-----
structures used in the operation of the Stations or located on the Real Property
are obstruction marked and lighted to the extent required by, and in accordance
with the rules and regulations of the Federal Aviation Administration (the
"FAA"), the FCC and other federal, state and local authorities. Appropriate
 ---
notifications to the FAA and registrations with the FCC have been filed for such
towers where required. Except for proceedings affecting the radio broadcast
industry generally, there are no proceedings pending or, to Seller's knowledge,
threatened with respect to Seller's ownership or operation of the Stations which
reasonably may be expected to result in the revocation, material adverse
modification, non-renewal or suspension of any of the Stations Licenses, the
denial of any pending applications for Stations Licenses, the issuance against
Seller of any cease and desist order, or the imposition of any administrative
actions by the FCC or any other Governmental Entity with respect to the Stations
Licenses, or which reasonably may be expected to adversely affect the Stations'
ability to operate as currently operated or Buyer's ability to obtain assignment
of the Stations Licenses. With the exception of such temporary reduced power
operations as are necessary for routine maintenance, the Stations operate (i) in
conformity with the Stations Licenses; and (ii) within the operating power
tolerances specified in 47 C.F.R. Section 73.1560(a)(1) and 47 C.F.R. Section
73.1560(b). To Seller's knowledge, no other broadcast Stations or radio
communications facility is causing interference to the Stations' transmissions
beyond that which is allowed by FCC rules and regulations. Seller has all
necessary authority to use the call signs set forth on Schedule 1.1.1.
                                                       ---------------

          6.1.6 Litigation. Except as disclosed on Schedule 6.1.6, there are no
                ----------                         --------------
actions, suits, inquiries, judicial or administrative proceedings, arbitrations
or investigations: (a) pending against Seller, (b) that relate to the operation
of the Stations or the Stations Assets to which Seller, to Seller's knowledge,
is not a party or, (c) to the knowledge of Seller, threatened against Seller.
There are no material judgments, decrees, injunctions, or orders of any
Governmental Entity or arbitrator outstanding against Seller or any of its
respective properties or assets. There is no action, suit, inquiry, judicial or
administrative proceeding pending or, to the knowledge of Seller, threatened
against Seller by a third party relating to the transactions contemplated by
this Agreement.

          6.1.7 Insurance. Seller has previously delivered to Buyer a list of
                ---------
all fire, liability and other forms of insurance and all fidelity bonds held by
or applicable to the Stations setting forth in respect of each such policy the
policy name, policy number, carrier, term, type of coverage and annual premium,
each of which is in full force and effect on the date hereof, is valid and
enforceable in accordance with its terms and is in an amount which is adequate
in relation to the business and operations of the Stations and the Stations
Assets. No event has occurred, including, without limitation, the failure by
Seller to give any notice or information, or the delivery of any inaccurate or
erroneous notice or information, which limits or impairs the rights of Seller
under any such

                                       12
<PAGE>

insurance policies. Seller shall keep comparable policies of insurance in effect
for acts, omissions and events occurring on or prior to the Closing Date.

          6.1.8 Real Estate. (a) Seller has, and upon Closing, Buyer will have,
                -----------
valid, good and marketable title to the Owned Real Estate and, except as set
forth on Schedule 6.1.8, valid leasehold interests in the Leased Real Estate,
         --------------
free and clear of any Liens. The buildings (or portions thereof), improvements
and fixtures that are included in the Real Estate are suitable for their
intended use. Seller owns, or has a valid right to use adequate routes of
vehicular and pedestrian ingress and egress to, from and over all of the Real
Estate necessary to operate the Stations. The Real Estate has adequate water
supply, sewage and waste disposal facilities, is connected to and served by
telephone, gas, electricity and other utility equipment facilities and services
necessary for the operation or use of the Real Estate. To Seller's knowledge, no
fact or condition exists which would result in the termination or impairment of
the furnishing of utility services to the Real Estate. Schedule 1.1.7 lists the
                                                       --------------
street address and/or legal descriptions of the Owned Real Estate and Schedule
                                                                      --------
1.1.8 lists the street addresses and/or legal descriptions of the Leased Real
-----
Estate. All real estate Taxes, assessments and use charges pertaining to the
Owned Real Estate that have become due have been paid in full.

               (b) The Real Estate, any improvements thereon, and the use by
Seller thereof conforms in all material respects to: (i) all applicable laws,
including, but not limited to, zoning requirements and the Americans With
Disabilities Act, and (ii) all restrictive covenants, if any. There are no
eminent domain proceedings pending, or, to Seller's knowledge, threatened
against the Real Estate. All material improvements (i) have been constructed in
a good and workmanlike manner, free, in all material respects, from defects in
workmanship and material and (ii) have been constructed, occupied maintained and
operated in material compliance with all applicable laws, insurance
requirements, contracts, leases, permits, licenses, ordinances, restrictions,
building set-back lines, covenants, reservations, and easements, and Seller has
received no notice, written or oral, claiming any material violation of any of
the same or requesting or requiring the performance of any material repairs,
alterations or other work in order to so comply. No improvement on any of the
Real Estate encroaches, in any material respect, upon any adjacent real property
of any other person or entity. The heating, air conditioning, plumbing,
ventilating, utility, sprinkler and other mechanical and electrical systems,
apparatus and appliances located on the Real Estate or in the improvements are
in good operating condition (normal wear and tear excepted), free from material
defects in workmanship and material.

          6.1.9 Personal Property. Schedule 1.1.2 contains a list of all
                -----------------  --------------
material tangible personal property and assets owned or held by Seller and used
in the conduct of the business and operations of the Stations. Except as
disclosed in Schedule 1.1.2, Seller owns and will have on the Closing Date, and
             --------------
upon Closing Buyer will own and will have, good and marketable title to all such
property and none of such property is, or at the Closing will be, subject to any
Liens. The tangible personal property and the fixtures owned or used by Seller
and necessary for the business or operations of the Stations, are, in all
material respects, in good operating condition (subject to normal wear and tear)
and are sufficient to permit the conduct of the business and operations of the
Stations in

                                       13
<PAGE>

compliance with FCC rules and regulations. Seller owns or holds under valid
leases all of the tangible personal property and fixtures necessary to conduct
the business and operations of the Stations as presently conducted. The Stations
Assets to be transferred hereunder constitute all of the assets, rights and
properties that are required for the business and operations of the Stations as
they are now conducted.

          6.1.10 Liens and Encumbrances. All of the Stations Assets, as of the
                 ----------------------
Closing, will be free and clear of all liens, pledges, claims, security
interests, restrictions, mortgages, tenancies and other possessory interests,
conditional sale or other title retention agreements, assessments, easements,
rights of way, covenants, restrictions, rights of first refusal, defects in
title, encroachments and other burdens, options or encumbrances of any kind
(other than (a) liens for taxes and other governmental charges and assessments
which are not yet due and payable, but for which Seller shall continue to be
liable and make payments as the same shall become due and payable, (b) liens of
landlords and liens of carriers, warehousemen, mechanics and materialmen and
other like liens arising in the ordinary course of business for sums not yet due
and payable, but for which Seller shall continue to be liable and make payments
as the same shall become due and payable, and (c) other liens or imperfections
on property (including any easements of record on any of the Real Estate) that,
individually or in aggregate, are not material in amount or do not materially
detract from the value of, or materially impair the existing use of, the
property affected by such lien or imperfection) (collectively, "Liens").
                                                                -----

          6.1.11 Environmental Matters.
                 ---------------------

          Except as disclosed on Schedule 6.1.11:
                                 ---------------

               (a) The Stations and any and all Real Estate is, and to Seller's
knowledge with respect to any predecessor or prior owner, operator or lessee
(each a "Predecessor") has been, in compliance, in all material respects, with
         -----------
all Environmental Laws (defined in Section 6.1.11(f));
                                   -----------------

               (b) No judicial or administrative proceedings are pending or, to
the knowledge of Seller, threatened against Seller relating to any of the Real
Estate, alleging the violation of, or seeking to impose liability on Seller
pursuant to, any Environmental Law. Seller has not received any written notice,
claim or other written communication from any Governmental Entity or other
person alleging the violation of, or liability under, any Environmental Laws;

               (c) There are no facts, circumstances or conditions associated
with the Real Estate or the business or operations thereon known to Seller that
could reasonably be expected to give rise to a material environmental claim
against the Stations or the owner or operator thereof or result in the Stations
or the owners or operators thereof incurring material Environmental Costs and
Liabilities (as defined in subsection (f) below);

               (d) All substances, materials or waste that are regulated by
federal, state or local government under the Environmental Laws as hazardous,
toxic or a

                                       14
<PAGE>

pollutant or contaminant as well as any petroleum or petroleum derived product
(collectively, "Hazardous Substances"), used or generated by Seller or to
                --------------------
Seller's knowledge, by any Predecessor in connection with the ownership of Real
Estate, have been stored, used, treated, and disposed of by such persons or on
their behalf in such manner as not to result in any material Environmental Costs
or Liabilities;

               (e) There are not now, nor have there been in the past, on, in or
under any Real Estate when owned, leased or operated by Seller or, to Seller's
knowledge, when owned, leased or operated by any Predecessor, any of the
following: underground storage tanks, above-ground storage tanks, dikes or
impoundments containing Hazardous Substances, asbestos containing materials,
polychlorinated biphenyls or related compounds (other than those labeled and
maintained in accordance with applicable Environmental Laws), in each case, in
amounts or concentrations regulated under the Environmental Laws or radioactive
substances in amounts or concentrations regulated under the Environmental Laws;
and

               (f) For purposes of this Agreement, the following terms shall
have the following meanings: "Environmental Laws" shall mean all applicable
                              ------------------
federal, state and local laws, statutes, codes, rules, regulations, common law
or other legal requirements relating to the environment, natural resources, and
public or employee health and safety; "Environmental Costs and Liabilities"
                                       -----------------------------------
shall mean any losses, including environmental remediation costs, liabilities,
obligations, damages, fines, penalties or judgments, arising from or under any
Environmental Law or order of or agreement with any Governmental Entity or other
person.

          6.1.12 Taxes. (a) All Tax Returns (as defined in subsection (h) below)
                 -----
that are required to be filed on or before the execution of this Agreement by
Seller have been duly filed on a timely basis under the statutes, rules and
regulations of each applicable jurisdiction and Seller will file or will cause
to be duly filed, all Tax Returns required to be filed by Seller as of the
Closing Date and with respect to any taxable period prior to or which includes
the Closing Date. All such Tax Returns are (or will be) complete and accurate in
all material respects. Except as set forth on Schedule 6.1.12, all Taxes,
                                              ---------------
whether or not reflected on the Tax Returns, which are due with respect to
Seller have been timely paid by Seller, whether or not such Taxes are disputed
or are properly reserved for in the Seller's Financial Statements.

               (b) No claim for assessment or collection of Taxes has been
asserted against Seller. Seller is not a party to any pending audit, action,
investigation or proceeding by any Governmental Entity for the assessment or
collection of Taxes nor does Seller have knowledge of any threatened audit,
action, proceeding or investigation.

               (c) Seller has not waived or extended any statutes of limitation
for the assessment or collection of Taxes. No claim has ever been made by a
Governmental Entity in a jurisdiction where Seller does not currently file Tax
Returns that it is or may be subject to taxation by that jurisdiction nor is
Seller aware that any such assertion of jurisdiction is pending or threatened.
No Liens have been imposed

                                       15
<PAGE>

upon or asserted against any of the Stations Assets as a result of or in
connection with any failure, or alleged failure to pay any Tax.

               (d) Seller has withheld and paid all Taxes required to be
withheld in connection with any amounts paid or owing to any employee, creditor,
independent contractor or other third party.

               (e) Seller is not a foreign person within the meaning of Section
1445 of the Code.

               (f) None of the Stations Assets is (i) "tax-exempt use" property
                                                       --------------
within the meaning of Section 168(h) of the Code, (ii) required to be treated as
owned by another person pursuant to the provisions of Section 168(f)(8) of the
Internal Revenue Code of 1954, as amended and in effect immediately prior to the
enactment of the Tax Reform Act of 1986, (iii) "tax exempt bond financed
                                                ------------------------
property" within the meaning of Section 168(g) of the Code or (iv) "limited use
--------                                                            -----------
property" (as that term is used in Rev. Proc. 76-30).
--------

               (g) Seller has no Affiliates (excluding officers, directors and
controlling stockholders), subsidiaries or investments in any other entity,
other than marketable securities.

               (h) For purposes of this Agreement, the terms "Tax" and "Taxes"
                                                              ---       -----
shall mean all federal, state, local, or foreign income, payroll, Medicare,
withholding, unemployment insurance, social security, sales, use, service,
service use, leasing, leasing use, excise, franchise, gross receipts, value
added, alternative or add-on minimum, estimated, occupation, real and personal
property, stamp, duty, transfer, workers' compensation, severance, windfall
profits, environmental (including Taxes under Section 59A of the Code), or other
tax, charge, fee, levy or assessment of the same or of a similar nature,
including any interest, penalty, or addition thereto whether disputed or not.
The term "Tax Return" means any return, declaration, report, claim for refund,
          ----------
or information return or statement relating to Taxes or any amendment thereto,
and including any schedule or attachment thereto.

          6.1.13 Personnel. Seller has previously provided to Buyer a complete
                 ---------
and correct list, as of the date of this Agreement, of the names and positions
of all employees or other Stations and broadcast personnel (whether employees or
independent contractors) of the Stations (other than Theodore Boyd, Jackman
Vodrey and those employees who primarily perform work for the Sign Pro
business), which sets forth the current salaries of all such persons and the
other compensation arrangements with Seller. None of such persons, except as set
forth on Schedule 6.1.13, is a party to any employment, consulting or similar
         ---------------
contract with Seller. Seller has no reason to believe that any employee material
to the business or operations of the Stations will terminate his or her
employment with the Stations as a result of the consummation of the transactions
contemplated by this Agreement or otherwise.

                                       16
<PAGE>

          6.1.14 Certain Agreements. The Contracts are the only contractual
                 ------------------
agreements necessary to carry out the business and operations of the Stations as
currently conducted. Each Contract (as identified on Schedule 1.1.3) is a valid
                                                     --------------
and binding obligation of Seller and is in full force and effect and, to the
knowledge of Seller, each other party to such Contract has performed in all
material respects the obligations required to be performed by it and is not
(with or without lapse of time or the giving of notice, or both) in material
breach or default thereunder. Schedule 1.1.3 identifies, as to each Contract,
                              --------------
whether the consent of the other party thereto is required in order for such
Contract to continue in full force and effect upon the consummation of the
transactions contemplated hereby.

          6.1.15 ERISA Compliance. Seller, nor any other trades or businesses
                 ----------------
under common control, or which are treated as a single employer with Seller
under Sections 414(b), (c), (m) or (o) of the Code (collectively, the "ERISA
                                                                       -----
Group") has not contributed to or been obligated to contribute to any "multi
-----                                                                  -----
employer plan" as such term is defined in Section 3(37) or Section 4001(a)(3) of
-------------
the Employee Retirement Income Security Act of 1974, as amended ("ERISA") except
                                                                  -----
as disclosed on Schedule 6.1.15. Schedule 6.1.15 lists all "employee benefit
                ---------------  ---------------
plans" within the meaning of Section 3(3) of ERISA and bonus, pension, profit
sharing, defined benefit, deferred compensation, incentive compensation, stock
ownership, stock purchase, stock option, phantom stock, retirement, vacation,
severance, disability, death benefit, hospitalization, salary continuation,
educational assistance, club memberships, company car (other than those provided
to employees pursuant to employment agreements listed on Schedule 1.1.3 hereto),
                                                         --------------
insurance or other plans, arrangements or understandings providing benefits to
any present or former employee or contractor of the Stations maintained by
Seller or as to which Seller (with respect to such individuals) has any
liability or obligation (collectively, "Employee Benefit Plans").
                                        ----------------------

          6.1.16 Labor. Seller has not agreed to recognize any union or other
                 -----
collective bargaining unit, nor has any union or other collective bargaining
unit been certified as representing any of Seller's employees. Except as
disclosed on Schedule 6.1.16, for the past five years, Seller: (a) is and has
             ---------------
been in compliance, in all material respects, with all applicable laws regarding
employment and employment practices (including, without limitation, ERISA), and
those laws relating to terms and conditions of employment, wages and hours, and
plant closing, occupational safety and health and workers' compensation and is
not engaged, nor has it engaged, in any unfair labor practices, (b) has no, and
has not had any, unfair labor practice charges or complaints pending or, to
Seller's knowledge, threatened against it before the National Labor Relations
Board, (c) has no, and has not had any, grievances pending or, to Seller's
knowledge, threatened against it and (d) has no, and has not had any, charges
pending or, to Seller's knowledge, threatened against it before the Equal
Employment Opportunity Commission or any state or local agency responsible for
the prevention of unlawful employment practices. There is no labor strike,
slowdown, work stoppage or lockout actually pending or, to the knowledge of
Seller, threatened against the Stations. To Seller's knowledge, no union
organizational effort or representation petition is currently pending with
respect to the employees of Seller.

                                       17
<PAGE>

          6.1.17 Intellectual Property. Schedule 1.1.4 sets forth all
                 ---------------------  --------------
Intellectual Property used in the business and operations of the Stations
(whether owned, leased or licensed by Seller). Seller has, and upon the Closing
Buyer will have, good and marketable title to all Intellectual Property owned by
Seller, free and clear of any Liens. Seller has not received any notice of any
claimed conflict, violation or infringement of such Intellectual Property
rights, and to Seller's knowledge, none of such Intellectual Property rights are
being infringed by any third party. To Seller's knowledge, the operation of
Seller's business does not infringe on the intellectual property rights of any
other person.

          6.1.18 Absence of Certain Changes or Events. Except as contemplated or
                 ------------------------------------
expressly permitted by this Agreement, since March 31, 2000 there has not been:
(a) any material damage, destruction or loss of any kind with respect to the
Stations not covered by valid and collectible insurance, nor, to Seller's
knowledge, has there been any event or circumstance which has had, or reasonably
could be expected to have, a material adverse effect on the business or
operations of the Stations; (b) the execution of any agreement with any officer,
the General Manager of the Stations or broadcast personnel (whether an employee
or independent contractor) providing for his/her employment, or any increase in
compensation or severance or termination of benefits payable or to become
payable by Seller to any officer, the General Manager of the Stations, or
broadcast personnel (whether an employee or independent contractor), or any
increase in benefits under any collective bargaining agreement, except in any
case in the ordinary course of business consistent with prior practice and
except as permitted by Section 8.1.1 or (c) any change by Seller in its
                       -------------
financial or Tax accounting principles or methods, except insofar as required by
GAAP or applicable law.

          6.1.19 Commission or Finder's Fees. Except with respect to any fees
                 ---------------------------
payable by Seller to the Ted Hepburn Company, neither Seller nor any entity
acting on behalf of Seller has agreed to pay a commission, finder's fee or
similar payment to any person or entity in connection with this Agreement or any
matter related hereto.

          6.1.20 Seller's Financial Condition. No insolvency proceedings of any
                 ----------------------------
character, including, without limitation, bankruptcy, receivership,
reorganization, composition or arrangement with creditors, voluntary or
involuntary, affecting Seller or any of its respective assets or properties are
pending, or to Seller's knowledge, threatened, and Seller has made no assignment
for the benefit of creditors, nor taken any action with a view to, or which
would constitute a basis for, the institution of any such insolvency
proceedings. Seller shall use the proceeds received under this Agreement to pay
or to make appropriate provision for the payment of any and all creditors of
Seller prior to making any distribution to its shareholders.

          6.1.21 Books and Records. The books, records and accounts of Seller
                 -----------------
maintained with respect to the Stations accurately and fairly reflect, in
reasonable detail and in all material respects, the transactions and the assets
and liabilities of Seller. Seller has not engaged in any transaction, maintained
any bank account or used any of the funds of Seller except for transactions,
bank accounts and funds which have been and are

                                       18
<PAGE>

reflected, in all material respects, in the normally maintained books and
records of the Stations.

          6.1.22 Barter Arrangements. Schedule 6.1.22 accurately describes all
                 -------------------  ---------------
barter, trade or similar arrangements for the sale of advertising for other than
cash and all Trade Agreements relating to the business or operations of the
Stations which are outstanding as of the date hereof. With respect to the
Stations, all such advertising time sold under barter, trade or similar
arrangements for other than cash or under Trade Agreements may be preempted by
advertising time that is sold for cash. All such barter, trade or similar
arrangements for the sale of advertising time for other than cash and all Trade
Agreements have been entered into in the ordinary course of business consistent
with past practices.

          6.1.23 Interest in Competitors, Suppliers and Customers. Except as set
                 ------------------------------------------------
forth on Schedule 6.1.23 hereto, neither Seller nor any officer, director or
         ---------------
Affiliate of Seller has any ownership interest in any competitor, supplier,
customer or other service provider of Seller or any property used in the
operation of the businesses of Seller.

          6.1.24 No Third Party Options. There are no existing agreements with,
                 ----------------------
options or rights of, or commitments to any person other than Buyer to acquire
any of the Stations Assets or any interest therein

          6.1.25 Full Disclosure. No representation or warranty by Seller
                 ---------------
contained in this Agreement (including the Schedules hereto) or in any
certificate furnished pursuant to this Agreement contains or will contain any
untrue statement of a material fact, or omits or will omit to state any material
fact necessary, in light of the circumstances under which it was or will be
made, in order to make the statements herein or therein not misleading.

                                    ARTICLE 7

                     REPRESENTATIONS AND WARRANTIES OF BUYER
                     ---------------------------------------

     7.1 Representations and Warranties of Buyer. Buyer hereby makes the
         ---------------------------------------
following representations and warranties to Seller:

          7.1.1 Organization and Standing. Buyer is a corporation validly
                -------------------------
existing and in good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to own, lease and operate its
properties and to carry on its business as now being conducted.

          7.1.2 Authorization and Binding Obligation. Buyer has all requisite
                ------------------------------------
corporate power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. Buyer's execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been
duly and validly authorized by all necessary corporate action on the part of
Buyer. This Agreement has been duly executed and delivered by Buyer and,
assuming the due execution and delivery of this Agreement by Seller, constitutes
the legal, valid and binding obligation of Buyer,

                                       19
<PAGE>

enforceable against it in accordance with its terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights in general and subject to general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

          7.1.3 Qualification. Except as set forth on Schedule 7.1.3, to Buyer's
                -------------                         --------------
knowledge, there is no fact, allegation, condition, or circumstance that could
reasonably be expected to prevent the prompt grant of the FCC Consents. Except
as set forth on Schedule 7.1.3, Buyer knows of no fact that would, under the
                --------------
Communications Act, or the rules, regulations and policies of the FCC,
disqualify Buyer from becoming the licensee of the Stations. There are no
proceedings, complaints, notices of forfeiture, claims, or investigations
pending or, to the knowledge of Buyer, threatened against any, or in respect of
any, of the broadcast Stations licensed to Buyer or its Affiliates that would
materially impair the qualifications of Buyer to become a licensee of the
Stations or delay the FCC's processing of the FCC Applications.

          7.1.4 Absence of Conflicting Agreements or Required Consents. Except
                ------------------------------------------------------
as set forth in Schedule 7.1.4 hereof, the execution and delivery of this
                --------------
Agreement, and the consummation of the transactions contemplated hereby by Buyer
shall: (a) not violate, conflict with or result in any breach of any provision
of the articles of incorporation or bylaws of Buyer; (b) violate, conflict with
or result in a violation or breach of, or constitute a default (with or without
due notice or lapse of time or both) under, or permit the termination of, or
result in the acceleration of, or entitle any party to accelerate (whether as a
result of the sale of the Stations Assets or otherwise) any obligation, or
result in the loss of any benefit, or give rise to the creation of any Lien upon
any of the properties or assets of Buyer or any its subsidiaries under any of
the terms, conditions or provisions of any loan or credit agreement, note, bond,
mortgage, indenture or deed of trust, or any license, lease, agreement or other
instrument or obligation to which any of them are a party or by which they or
any of their properties or assets may be bound or affected, or (c) violate any
order, writ, judgment, injunction, decree, statute, rule or regulation of any
Governmental Entity applicable to Buyer or any of its respective properties or
assets, except for those violations that individually or in the aggregate could
not reasonably be expected to have a material adverse effect on Buyer's ability
to consummate the transactions contemplated by this Agreement.

          7.1.5 Litigation. There are no actions, suits, inquiries, judicial or
                ----------
administrative proceedings, or arbitrations pending or, to the knowledge of
Buyer, threatened against Buyer or any of its respective properties or assets by
or before any arbitrator or Governmental Entity nor are there any investigations
relating to Buyer or any of its respective properties or assets pending or, to
the knowledge of Buyer, threatened by or before any arbitrator or Governmental
Entity that has had or that reasonably could be expected to have a material
adverse effect on Buyer's ability to consummate the transactions contemplated by
this Agreement. There are no material judgments, decrees, injunctions, or orders
of any Governmental Entity or arbitrator outstanding against Buyer or any of its
respective properties or assets that has had or that reasonably could be
expected to have a material adverse effect on Buyer's ability to

                                       20
<PAGE>

consummate the transactions contemplated by this Agreement. There is no action,
suit, inquiry, judicial or administrative proceeding pending or, to the
knowledge of Buyer, threatened against Buyer by a third party relating to the
transactions contemplated by this Agreement.

          7.1.6 Commission or Finder's Fees. Neither Buyer, nor any entity
                ---------------------------
acting on behalf of Buyer, has agreed to pay a commission, finder's fee or
similar payment to any person or entity in connection with this Agreement or any
matter related hereto.

          7.1.7 No Violation of Multiple Ownership Rules. Neither Buyer, any
                ----------------------------------------
investor in Buyer, nor any creditor of Buyer owns, or is a party to any
agreement to acquire, an equity or debt interest in any radio or television
station or any daily newspaper that is located in proximity to the Stations so
that consideration of that equity or debt interest would be required in
connection with the FCC Applications under Section 73.3555 of the FCC's rules.

          7.1.8 Full Disclosure. No representation or warranty by Buyer
                ---------------
contained in this Agreement (including the Schedules hereto) or in any
certificate furnished pursuant to this Agreement contains or will contain any
untrue statement of a material fact, or omits or will omit to state any material
fact necessary, in light of the circumstances under which it was or will be
made, in order to make the statements herein or therein not misleading.

                                    ARTICLE 8

                               COVENANTS OF SELLER
                               -------------------

     8.1 Seller Covenants. Seller covenants and agrees with Buyer that, pending
         ----------------
the Closing, and except as otherwise agreed to in writing by Buyer:

          8.1.1 Conduct Prior to the Closing Date. Seller, from and after the
                ---------------------------------
date hereof through the Closing Date, shall:

               (a) use its commercially reasonable efforts to maintain its
present business organization, keep available the services of its present
employees and independent contractors, preserve its relationships with its
customers and others having business relationships with it and refrain from
materially and adversely changing any of its business policies;

               (b) maintain its books of account and records in the usual and
ordinary manner and in accordance with GAAP except as otherwise provided herein;

               (c) notify Buyer if the regular broadcast transmission of the
Stations from its main transmitting facilities at full authorized effective
radiated power is interrupted for a period of more than five consecutive hours
or for an aggregate of 10 or more hours in any continuous three-day period;

                                       21
<PAGE>

               (d) operate in the usual and ordinary course of business in
accordance with past practices and conduct its business in all material respects
in compliance with the terms of the Stations Licenses and all applicable laws,
rules, and regulations, including, without limitation, the applicable rules and
regulations of the FCC;

               (e) use, repair, and, if necessary, replace the Stations' studio
and transmission assets in a reasonable manner consistent with historical
practice and maintain its assets in substantially their current condition,
ordinary wear and tear excepted;

               (f) maintain insurance in conformity with Section 6.1.7;
                                                         -------------

               (g) not knowingly incur any debts, obligations or liabilities
(absolute, accrued, contingent, or otherwise) that include obligations (monetary
or otherwise) to be performed by Buyer after the Closing that exceeds $20,000
individually or $50,000 in the aggregate;

               (h) not lease, mortgage, pledge, or subject to a Lien any of the
Stations Assets or sell or transfer any of the Stations Assets without replacing
such Stations Assets with an asset of substantially the same value and utility;

               (i) not: (i) modify or extend any Contracts (other than automatic
renewals that are effective without providing any notice) or (ii) except as
contemplated on Schedule 1.1.3, enter into any new Contract, which requires
                --------------
payments after the Closing in excess of $20,000 individually or $50,000 in the
aggregate, without the prior written consent of Buyer, which consent shall not
be unreasonably withheld or delayed;

               (j) not make or grant any general wage or salary increase or
materially modify the employees' terms and conditions of employment, other than
in the ordinary course of business, consistent with past practices, and, with
respect to the General Manager of the Stations and broadcast personnel, Seller
shall not make or grant any wage or salary increase or modify any terms and
conditions of employment without the prior written consent of Buyer other than
wage or salary increases made in the ordinary course of business, consistent
with past practices;

               (k) not make (i) any change in the accounting principles,
methods, or practices followed by Seller or depreciation or amortization
policies or rates, or (ii) change any Tax election or settle any Tax audit or
controversy relating to the Stations Assets;

               (l) not make any loans or make any dividends or distributions
other than with any Excluded Assets;

               (m) other than in the ordinary course of business, not cancel or
compromise any debt or claim, or waive or release any right, of material value
that will be assumed by or assigned to Buyer at the Closing;

                                       22
<PAGE>

               (n) not disclose to any person (other than Buyer and its
representatives) any confidential or proprietary information, except as may
otherwise be required by law;

               (o) use its commercially reasonable efforts to maintain the
present format of the Stations and with programming consistent with past
practices;

               (p) other than in the ordinary course of business, not increase
the number of regularly scheduled commercial units run during the day-parts on
the Stations (other than changes in the number of commercial units run during
any day-part as a result of operating difficulties that require commercial units
to be broadcast at times other than as scheduled); and

               (q) agree to do any of the foregoing.

          8.1.2 Access. Seller shall, or shall cause the Stations, to (a) give
                ------
Buyer and Buyer's counsel, accountants, engineers and other representatives,
including environmental consultants, reasonable access during normal business
hours to all of the Stations' employees and the Stations Assets, in order that
Buyer may have full opportunity to make, at Buyer's expense, such review,
examination and investigation, including, but not limited to, environmental
assessments, as it desires of the affairs of the Stations and (b) furnish Buyer
with information and copies of all documents and agreements including, but not
limited to, financial and operating data and other information concerning the
financial condition, results of operations and business of the Stations that
Buyer may reasonably request. The rights of Buyer under this Section 8.1.2 shall
                                                             -------------
not be exercised in such a manner as to interfere unreasonably with the business
or operations of the Stations. Furthermore, from and after the Closing Date, for
a period of seven (7) years, Seller hereby acknowledges and agrees that upon
Buyer's reasonable request that it shall make available to Buyer the broadcast
scripts and recordings retained by Seller pursuant to Section 1.2.12 of this
                                                      --------------
Agreement.

          8.1.3 Satisfaction of Conditions; Closing. Subject to any limitations
                -----------------------------------
imposed on Seller that limit Seller's ability to conduct the business or
operations of the Stations following the commencement date of the Time Brokerage
Agreement, Seller shall use its commercially reasonable efforts to conduct the
business of the Stations in such a manner that on the Closing Date the
representations and warranties of Seller contained in this Agreement shall be
true in all material respects as though such representations and warranties were
made on and as of such date. Furthermore, Seller shall cooperate with Buyer and
shall use its commercially reasonable efforts to satisfy promptly all conditions
required hereby to be satisfied by Seller in order to consummate the
transactions contemplated hereby.

          8.1.4 Sale of Acquired Assets; Negotiations. Seller shall not, and
                -------------------------------------
Seller shall cause its respective Affiliates, directors, officers, employees,
agents, representatives, legal counsel, and financial advisors not to: (a)
solicit, initiate, accept, consider, entertain or encourage the submission of
proposals or offers from any person or entity with respect to the acquisition
contemplated by this Agreement or any similar

                                       23
<PAGE>

transaction wherein such person or entity would directly or indirectly acquire
all or any portion of the Stations Assets or ownership interests in Seller, or
any merger, consolidation, or business combination, directly or indirectly, with
or for Seller or all or substantially all of the Seller's business, or (b)
participate in any negotiations regarding, or, except as required by legal
process (including pursuant to discovery or agreements existing on the date
hereof), furnish to any person or entity (other than Buyer) to do or seek any of
the foregoing. Seller shall not enter into any agreement or consummate any
transactions that would interfere with the consummation of the transactions
contemplated by this Agreement. Seller shall promptly notify Buyer in writing if
it receives any written inquiry, proposal or offer described in this Section
                                                                     -------
8.1.4 or any verbal inquiry, proposal or offer described in this Section 8.1.4
-----                                                            -------------
that is competitive with the terms of the transactions contemplated by this
Agreement and Seller shall inform such inquiring person or entity of the
existence of this Agreement and make such inquiring person or entity aware of
Seller's obligations under this Section 8.1.4. The notification under this
                                -------------
Section 8.1.4 shall include the identity of the person or entity making such
-------------
inquiry, offer, or other proposal, the terms thereof, and any other information
with respect thereto as Buyer may reasonably request. Seller shall not provide
any confidential information concerning its business or the Stations Assets to
any third party other than in the ordinary course of the business and consistent
with prior practice. Seller has ceased and caused to be terminated any existing
activities, discussions or negotiations with any person or entity conducted
heretofore with respect to any of the foregoing.

          8.1.5 Notification. Seller shall promptly notify Buyer in writing of:
                ------------
(a) the failure of Seller or, to Seller's knowledge, any employee or agent of
Seller to comply with or satisfy in any material respect any covenant, condition
or agreement to be complied with hereunder; (b) the occurrence of any event that
would entitle Buyer to terminate this Agreement pursuant to Section 17.1; or (c)
                                                            ------------
any overt threat of resignation or actual resignation or termination of any
employee of the Stations prior to the Closing Date.

          8.1.6 FCC Reports. Seller shall file on a current basis until the
                -----------
Closing Date all reports and documents required to be filed with the FCC with
respect to the Stations Licenses. Copies of each such report and document filed
between the date hereof and the Closing Date shall be furnished to Buyer
promptly after its filing.

          8.1.7 Updating of Information. Between the date of this Agreement and
                -----------------------
the Closing Date, Seller will deliver to Buyer: (i) on a monthly basis, within
15 days after the end of each month, information relating to the operation of
the Stations, including, without limitation, a set of current financial
statements in a form consistent with forms prepared by Seller in accordance with
its past practice, (ii) on a weekly basis, on the Monday after the end of each
week, weekly pacing reports in a form consistent with forms prepared by Seller
in accordance with its past practice and (iii) such other financial information
that may be reasonably requested by Buyer.

          8.1.8 Response to Certain Actions. Seller agrees to cooperate and use
                ---------------------------
its commercially reasonable best efforts to contest and resist any action,
including administrative or judicial action, and make reasonable attempts to
have vacated, lifted,

                                       24
<PAGE>

reversed or overturned any decree, judgment, injunction or other order, whether
temporary, preliminary or permanent, that is in effect and that restricts,
prevents or prohibits the consummation of the transactions contemplated by this
Agreement.

          8.1.9 Interim Financial Statements. Seller shall promptly deliver to
                ----------------------------
Buyer copies of any monthly, quarterly or annual financial statements relating
to the Stations' operations that may be prepared by it during the period from
the date hereof through the Closing Date. Such financial statements shall fairly
present, in all material respects, the financial position and results of
operations of the Stations as at the dates and for the periods indicated, and
shall be prepared on a basis consistent and in accordance with the basis upon
which the financial statements in Section 6.1.3 were prepared.
                                  -------------

          8.1.10 Estoppel Certificates. If requested by Buyer promptly following
                 ---------------------
the date of this Agreement, Seller shall use its commercially reasonable efforts
to obtain from third parties the estoppel certificates, nondisturbance
agreements, and/or written clarifications of the rights of Buyer thereunder, all
in form and substance reasonably satisfactory to Buyer.

          8.1.11 Covenant Not to Compete. Seller agrees that for a period of
                 -----------------------
three years after the Closing Date, that it will not directly or indirectly,
own, manage, operate, control or participate in the ownership, management,
operation or control of any business, whether in corporate, proprietorship or
partnership form or otherwise, which is engaged in the operation of any radio
station whose principal community contours overlap the principal community
contours of either of the Stations; provided that it may beneficially own up to
5% of any issued and outstanding class of securities that have been registered
under the Exchange Act (as defined hereinafter in Section 8.1.13).
                                                  --------------

          8.1.12 Shareholder Consents and Approvals. Seller shall use its
                 ----------------------------------
commercially reasonable efforts to obtain, by no later than June 30, 2000, all
necessary consents and approvals of its shareholders authorizing the execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby.

          8.1.13 Financial Statements. At all times after the date hereof,
                 --------------------
Seller shall, and shall cause all of Seller's representatives (including its
independent public accountants) to, cooperate in all reasonable respects with
the efforts of Buyer and Buyer's independent auditors to prepare such audited
and interim unaudited financial statements of the Stations as Buyer may
reasonably determine are necessary in connection with any filing required to be
made by it or any of its Affiliates under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), or the Securities Act of 1933, as amended (the
                 ------------
"Securities Act"). Seller shall execute and deliver to Buyer's independent
 --------------
accountants such customary management representation letters as they may require
as a condition to their ability to sign an unqualified report upon the audited
financial statements of the Stations for the periods for which such financial
statements are required under the Exchange Act or the Securities Act. Seller
shall use reasonable efforts to cause its independent public accountants to make
available to Buyer and its representatives all of their work papers related to
the financial statements or Tax Returns of Seller (to the extent they relate to
the Stations) and to provide Buyer's independent public accountants

                                       25
<PAGE>

with full access to those personnel who previously have been involved in the
audit or review of Seller's financial statements or Tax Returns, subject to any
limitations imposed by Seller's independent accountants. Any reasonable
out-of-pocket costs incurred by Seller in connection with Seller's obligations
under this Section 8.1.13 shall be reimbursed by Buyer within a reasonable time
           --------------
after Buyer's receipt of reasonably detailed information regarding such costs.

          8.1.14 Non-Solicitation. Until the third anniversary of the Closing
                 ----------------
Date, Seller will not, directly or indirectly, solicit, or offer employment to,
any employee of Seller engaged in the business or operations of the Stations
immediately prior to the Effective Time or immediately prior to the commencement
date of the Time Brokerage Agreement to whom Buyer, in connection with the
consummation of the transactions contemplated hereby, makes an offer of
employment on terms and conditions substantially similar to, and with
substantially similar benefits as, each such employee's employment with Seller,
unless that employee rejects that offer of employment made by Buyer or is
subsequently terminated by Buyer.

          8.1.15 Excluded Lots. Seller shall have the Transmitter Site and the
                 -------------
lots near the Transmitter Site described on Schedule 1.2.9 (the "Excluded Lots")
                                            --------------       -------------
assessed as separate tax parcels, to be assessed for real estate tax purposes as
one or more wholly independent tax lots, separate from each other and any
adjoining land or improvements not constituting a part of such Transmitter Site
or lot or lots. In any future sale, transfer, conveyance, grant, lease, license
or grant of any use of, of any kind or nature, whether in whole or part, of any
of the Excluded Lots by Seller to a third party purchaser, lessee, grantee,
licensee, or user, as the case may be (each a "Third Party"), Seller shall
                                               -----------
inform each such Third Party of the use of the Transmitter Site as a radio
transmitter site, and any deed, conveyance, grant deed, lease, license
agreement, or easement made by Seller of any such Excluded Lot shall be subject
to the right of Buyer, its successors and assigns to make use of the Transmitter
Site as a radio transmitter site, and each such deed, conveyance, grant deed,
lease, license agreement, or easement shall contain (i) a reservation by Seller
excepting to such use of the Transmitter Site, (ii) a covenant from such Third
Party not to disturb or interfere with such use, including but not limited to
the presence of the tower on the Transmitter Site, the underground grounding
system, any antenna pattern and power current as of the date of such sale, and
(iii) a release by Third Party of Buyer, its successors and assigns from any
loss or claim arising out of or in connection with such use, which reservation
and covenant shall by their express terms run with the land. Seller shall
include in the deed from Seller to Buyer hereunder of the Transmitter Site a
covenant of Seller, its successors and assigns to comply with the terms of this
Section 8.1.15.
--------------

                                    ARTICLE 9

                               COVENANTS OF BUYER
                               ------------------

     9.1 Buyer Covenants. Buyer covenants and agrees that, pending the Closing
         ---------------
and except as otherwise agreed to in writing by Seller:

                                       26
<PAGE>

          9.1.1 Notification. Buyer shall promptly notify Seller in writing of:
                ------------
(a) any litigation, arbitration or administrative proceeding pending or, to its
knowledge, threatened against Buyer which challenges the transactions
contemplated hereby or (b) the failure of Buyer, or, to Buyer's knowledge, any
employee or agent of Buyer to comply with or satisfy in any material respect any
covenant, condition or agreement to be complied with or satisfied by it
hereunder and (c) the occurrence of any event that would entitle Seller to
terminate this Agreement pursuant to Section 17.1.
                                     ------------

          9.1.2 Post-Closing Access. Buyer, for a period of seven (7) years
                -------------------
following the Closing Date, shall make available during normal business hours
for audit and inspection by Seller and its representatives, for any reasonable
purpose and upon reasonable notice, all records, files, documents and
correspondence transferred to it hereunder relating to the pre-closing period.
During such period, Buyer shall at no time dispose of or destroy any such
records, files, documents and correspondence without giving 30 days prior notice
to Seller to permit Seller, at its expense, to examine, duplicate or take
possession of and title to such records, files, documents and correspondence.
All information, records, files, documents and correspondence made available or
disclosed under this Section 9.1.2 shall be kept confidential.
                     -------------

          9.1.3 Satisfaction of Conditions; Closing. Buyer shall use its
                -----------------------------------
commercially reasonable efforts to conduct its business in such a manner that on
the Closing Date the representations and warranties of Buyer contained in the
Agreement shall be true in all material respects as though such representations
and warranties were made on and as of such date. Furthermore, Buyer shall
cooperate with Seller and use its commercially reasonable efforts to satisfy
promptly all conditions required hereby to be satisfied by Buyer in order to
consummate the transactions contemplated hereby.

          9.1.4 Response to Certain Actions. Buyer agrees to cooperate and use
                ---------------------------
its commercially reasonable efforts to contest and resist any action, including
administrative or judicial action, and make reasonable attempts to have vacated,
lifted, reversed or overturned any decree, judgment, injunction or other order,
whether temporary, preliminary or permanent, that is in effect and that
restricts, prevents or prohibits the consummation of the transactions
contemplated by this Agreement.

                                   ARTICLE 10

                                 JOINT COVENANTS
                                 ---------------

          Buyer and Seller covenant and agree that, pending the Closing and
except as otherwise agreed to in writing, they shall act in accordance with the
following:

     10.1 FCC Applications. Buyer and Seller shall prosecute the FCC
          ----------------
Applications with all reasonable diligence and shall use their commercially
reasonable efforts to obtain the FCC Consents as expeditiously as practicable,
but neither Buyer nor Seller shall have any obligation to satisfy complainants
or the FCC by taking any steps which would have a material adverse effect upon
Buyer or Seller. Notwithstanding anything to the contrary contained herein,
either party may terminate this Agreement upon notice to the other, if,

                                       27
<PAGE>

for any reason, the FCC Applications are designated for hearing by the FCC;
provided, however, that notice of termination must be given within twenty (20)
--------  -------
days after release of the hearing designation order and the party giving such
notice is not in default and has complied with its obligations under this
Agreement. Upon termination pursuant to this Section 10.1, the parties shall be
                                             ------------
released and discharged from any further obligation hereunder without being
subject to a claim by either party for damages.

     10.2 Confidentiality. Each of Buyer and Seller shall keep confidential all
          ---------------
information obtained by such party with respect to the other party hereto in
connection with this Agreement and the negotiations preceding this Agreement,
including, without limitation, the results of, and information relating to, the
Studies (as defined in Section 10.6) and will use such information solely in
                       ------------
connection with the transactions contemplated by this Agreement, and if the
transactions contemplated hereby are not consummated for any reason, each shall
return to the other party hereto, without retaining a copy thereof, any
schedules, documents or other written information obtained from such other party
in connection with this Agreement and the transactions contemplated hereby,
except to the extent required or useful in connection with any claim made with
respect to the transactions contemplated by this Agreement or the negotiation
thereof which will be returned following settlement of the claim.
Notwithstanding the foregoing, no party shall be required to keep confidential
or return any information which (a) is known or available through other lawful
sources, not bound by a confidentiality agreement with the disclosing party, or
(b) is or becomes publicly known through no fault of the receiving party or its
agents, or (c) is required to be disclosed pursuant to an order or request of a
judicial or government authority (provided the non-disclosing party is given
reasonable prior notice such that it may seek, at its expense, confidential
treatment of the information to be disclosed), (d) is developed by the receiving
party independently of the disclosure by the disclosing party or (e) is required
to be disclosed under applicable law or rule, as reasonably determined by
counsel for the receiving party.

     10.3 Cooperation. Buyer and Seller shall cooperate fully with one another
          -----------
in taking any actions, including actions to obtain the required consent of any
governmental instrumentality or any third party necessary to accomplish the
transactions contemplated by this Agreement; provided, however, that no party
                                             --------  -------
shall be required to take any action which would have a material adverse effect
upon such party.

     10.4 Bulk Sales Laws. Buyer hereby waives compliance by Seller with the
          ---------------
provisions of the "bulk sales" or similar laws of any state. Seller agrees to
                   ----------
indemnify Buyer and hold it harmless from any and all loss, cost, damage and
expense (including but not limited to, reasonable attorney's fees) sustained by
Buyer as a result of any failure of Seller to comply with any "bulk sales" or
similar laws.

     10.5 Public Announcements. Neither Buyer nor Seller shall issue any press
          --------------------
release or make any disclosure with respect to the transaction contemplated by
this Agreement without the prior written approval of the other party; provided,
                                                                      --------
however, that notwithstanding the foregoing, either party may make any such
-------
disclosure, without obtaining the prior consent of the other party, as may be
required by applicable law or by obligations pursuant to any listing agreement
with any securities exchange or the Nasdaq

                                       28
<PAGE>

National Market or any regulations of any securities exchange or the Nasdaq
National Market; provided further, that in the event that either party hereto
                 -------- -------
makes any such disclosure without obtaining the prior written approval of the
other party, the disclosing party shall provide notice of such disclosure to the
other party prior to making such disclosure.

     10.6 Condition of Real Estate. Buyer may, at its sole expense, conduct
          ------------------------
environmental studies, title examinations, and land surveys (the "Studies") of
                                                                  -------
the Real Estate provided all information received as a result of, or in the
course of, any of the Studies will be deemed confidential and subject to Section
                                                                         -------
10.2. Seller agrees to cooperate with any reasonable request of Buyer for a site
----
assessment or site review concerning any environmental, title or survey matter,
including the making available of such personnel of Seller as Buyer may
reasonably request, so long as such activities do not unreasonably interfere
with the conduct of Seller's business. At the discretion of Buyer, Buyer may
arrange, at its sole expense, for one or more independent contractors to conduct
tests of the Real Estate, including tests of air, soil (including surface and
subsurface materials), surface water and ground water, or any equipment or
facilities located thereon, in order to identify any present or past release or
threatened release of any hazardous substances. Such tests may be done at any
time, or from time to time, upon reasonable notice and under reasonable
conditions, which do not impede the performance of such tests, so long as such
activities do not unreasonably interfere with the conduct of Seller's business.
If Buyer notifies Seller within 45 days of the date of this Agreement (the
"Buyer Notice") that the Studies disclose potential Environmental Costs and
 ------------
Liabilities in excess of $15,000 or the presence of Hazardous Materials at
concentrations exceeding those allowed by Environmental Laws, or encroachments
that materially and adversely affect the use (for the purpose currently used) of
the Real Estate, or any other matters that materially affect the title, current
use value or use of the Real Estate, Seller shall promptly commence remedial
action at its expense to cure the condition giving rise to such matter and
attempt to cure such condition prior to the Closing; provided that Seller shall
not be obligated to spend (but may choose to spend) more than $250,000 in the
aggregate in its attempts to cure all such conditions. Seller shall notify Buyer
within 30 days after its receipt of the Buyer Notice if it determines that it is
unable to cure such conditions for $250,000 or less and chooses not to attempt
to cure such conditions, in which case Buyer may elect (a) to terminate this
Agreement or (b) to waive such obligations and receive a $250,000 reduction in
the Purchase Price at the Closing. If this Agreement is terminated in accordance
with the immediately preceding sentence, no party shall have any liability to
the other with respect to such termination. Either party may extend the Closing
by not more than 30 days, subject to Section 17.1(g) hereto, if either party
                                     ---------------
reasonably determines that any necessary remedial action can be completed during
such extended period.

     10.7 WARN Act Compliance. Until the commencement date of the Time Brokerage
          -------------------
Agreement commencement, Seller shall take all necessary actions to comply with
the WARN Act to the extent applicable. Buyer shall not have any disclosure or
announcement obligations under such act with respect to any employees or former
employees of Seller, and Seller shall indemnify Buyer and hold Buyer harmless
from any action, claim, suit, proceeding or assertion of liability with respect
thereto. Seller shall

                                       29
<PAGE>

take all necessary actions to comply with Part 6, Subtitle B, of Title I of
ERISA with respect to its employees and former employees, and Buyer shall not
have any obligations or liability with respect to qualifying events (as defined
in Section 603 of ERISA) on or before the commencement date of the Time
Brokerage Agreement.

                                   ARTICLE 11

                         CONDITIONS OF CLOSING BY BUYER
                         ------------------------------

          The obligations of Buyer hereunder, including, without limitation,
Buyer's obligations to close the transactions contemplated herein, are, at its
option, subject to satisfaction, at or prior to the Closing Date, of all of the
following conditions, any of which may be waived by Buyer:

     11.1 Representations, Warranties and Covenants. All of the representations
          -----------------------------------------
and warranties of Seller made in this Agreement or in any Exhibit, Schedule or
document delivered pursuant hereto, shall be true and correct in all material
respects as of the date hereof and on and as of the Closing Date as if made on
and as of that date, except for those given as of a specified date which must
only be true and correct as of such specified date and except for those
representations and warranties that are not materially true and correct as of
the Closing Date as a result of any action taken by Buyer in connection with
Buyer's operation of the Stations following the commencement date of the Time
Brokerage Agreement.

     11.2 Compliance with Agreement. All of the terms, covenants and conditions
          -------------------------
to be complied with and performed by Seller on or prior to the Closing Date
shall have been complied with or performed in all material respects.

     11.3 Closing Certificates. Buyer shall have received a certificate, dated
          --------------------
as of the Closing Date, from Seller, executed by an executive officer of Seller
certifying, in such detail as Buyer may reasonably request, that the conditions
set forth in Sections 11.1 and 11.2 hereto have been fulfilled.
             -------------     ----

     11.4 Third Party Consents and Approvals. Seller shall have obtained all
          ----------------------------------
third-party consents and approvals, if any, required for the transfer or
continuance, as the case may be, of the Contracts listed on Schedule 1.1.3 (and
                                                            --------------
contracts of a similar nature that would have been included on Schedule 1.1.3
                                                               --------------
had they been in existence on the date of this Agreement).

     11.5 Governmental Consents. The FCC Consents shall have been issued by the
          ---------------------
FCC without any conditions that would otherwise permit Buyer to terminate this
Agreement pursuant to Section 17.1(e) below and each such FCC Consent shall have
                      ---------------
become a Final Order. For purposes of this Agreement, "Final Order" means action
                                                       -----------
by the FCC consenting to the assignments contemplated by this Agreement which is
not reversed, stayed, enjoined, set aside, annulled or suspended, and with
respect to which action no timely request for stay, petition for rehearing, or
reconsideration, application

                                       30
<PAGE>

for review or appeal is pending, and as to which the time for filing any such
request, petition or appeal or reconsideration by the FCC on its own motion has
expired.

     11.6 Shareholder Consents and Approvals. Seller shall have obtained, by no
          ----------------------------------
later than June 30, 2000, all necessary shareholder consents and approvals
authorizing the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby.

     11.7 No Adverse Proceedings. No injunction, order, decree or judgment of
          ----------------------
any court, agency or other Governmental Entities shall have been rendered
against Seller or Buyer which would render it unlawful, as of the Closing Date,
to effect the transactions contemplated by this Agreement in accordance with its
terms.

     11.8 Closing Documents. Seller shall have delivered or caused to be
          -----------------
delivered to Buyer, on the Closing Date, the documents identified in Section
                                                                     -------
13.1.
----

     11.9 Release of Encumbrances. Buyer shall have received evidence
          -----------------------
satisfactory to Buyer's counsel of the release of any and all Liens with respect
to the Stations Assets.

     11.10 Legal Opinions. Buyer shall have received an opinion of Baker &
           --------------
Hostetler LLP and either Baker & Hostetler LLP or Cohn and Marks, each dated as
of the Closing Date, substantially in the form of Exhibits B-1 and B-2 hereto.
                                                  --------------------

     11.11 Earnest Money Letter of Credit. The Earnest Money Letter of Credit
           ------------------------------
(as defined in Section 17.3.2) or any funds delivered to the Earnest Money
               --------------
Escrow Agent in lieu thereof shall have been returned to Buyer.

     11.12 No Material Adverse Change. Since the date hereof through the Closing
           --------------------------
Date, there shall have been no material adverse change to the Stations Assets or
the financial condition or operating results of the Stations (other than as a
result of regulatory changes affecting the radio broadcasting industry generally
or general economic conditions) and other than any material adverse change to
the Stations Assets or the financial condition or operating results of the
Stations that has been caused by Buyer or any employee of Buyer in its operation
of the Stations following the commencement of the Time Brokerage Agreement.

     11.13 1445 Certificate. Seller shall have executed and delivered a
           ----------------
certificate, in a form reasonably satisfactory to the Buyer, stating that Seller
is not a foreign person within the meaning of Section 1445 of the Code.

     11.14 Indemnification Escrow Agreement. Seller and the Indemnification
           --------------------------------
Escrow Agent shall have executed and delivered the Indemnification Escrow
Agreement.

     11.15 Noncompetition and Nonsolicitation Side Letter. Theodore V. Boyd
           ----------------------------------------------
shall have entered into a letter agreement with Buyer which will obligate him to
comply with noncompetition and nonsolicitation covenants similar to those
imposed on Seller pursuant to the terms and conditions contained in this
Agreement.

                                       31
<PAGE>

                                   ARTICLE 12

                         CONDITIONS OF CLOSING BY SELLER
                         -------------------------------

          The obligations of Seller hereunder including, without limitation,
Seller's obligations to close the transactions contemplated herein are, at its
option, subject to the satisfaction, at or prior to the Closing Date, of all of
the following conditions, any of which may be waived by Seller:

     12.1 Representations, Warranties and Covenants. All of the representations
          -----------------------------------------
and warranties of Buyer made in this Agreement or in any Exhibit, Schedule or
document delivered pursuant hereto, shall be true and correct in all material
respects as of the date hereof and on and as of the Closing Date as if made on
and as of that date, except for those given as of a specified date which must
only be true and correct as of such specified date.

     12.2 Compliance with Agreement. All the terms, covenants, and conditions to
          -------------------------
be complied with and performed by Buyer on or prior to the Closing Date shall
have been complied with or performed in all material respects.

     12.3 Closing Certificates. Seller shall have received a certificate, dated
          --------------------
as of the Closing Date, from Buyer, executed by an executive officer of Buyer
certifying, in such detail as Seller may reasonably request, that the conditions
set forth in Sections 12.1 and 12.2 hereto have been fulfilled.
             -------------     ----

     12.4 Governmental Consents. The FCC Consents shall have been issued by the
          ---------------------
FCC and each such FCC Consent shall have become a Final Order (as defined in
Section 11.5).
------------

     12.5 No Adverse Proceedings. No injunction, decree or judgment of any
          ----------------------
court, agency or other Governmental Entities shall have been rendered against
Buyer or Seller which would render it unlawful, as of the Closing Date, to
effect the transactions contemplated by this Agreement in accordance with its
terms.

     12.6 Shareholder Approval. Seller shall have obtained all necessary
          --------------------
shareholder consents and approvals authorizing the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby.

     12.7 Opinion. Buyer shall have delivered to Seller an opinion of Weil,
          -------
Gotshal & Manges LLP, dated as of the Closing Date, in the form of Exhibit C
                                                                   ---------
hereto.

     12.8 Closing Documents. Buyer shall have delivered or caused to be
          -----------------
delivered to Seller, on the Closing Date the documents identified in Section
                                                                     -------
13.2.
----

     12.9 Indemnification Escrow Agreement. Buyer shall have executed and
          --------------------------------
delivered the Indemnification Escrow Agreement.

                                       32
<PAGE>

                                   ARTICLE 13

                    DOCUMENTS TO BE DELIVERED AT THE CLOSING
                    ----------------------------------------

     13.1 Documents to be Delivered by Seller. At the Closing, Seller will
          -----------------------------------
deliver to Buyer the following, at the expense of Seller and in proper form for
recording when appropriate:

          13.1.1 Transfer Documents. Such bills of sale, assignments, general
                 ------------------
warranty deeds and other good and sufficient instruments of transfer as Buyer
may reasonably request in order to convey and transfer to Buyer title to the
Stations Assets (collectively, the "Transfer Documents").
                                    ------------------

          13.1.2 Certified Resolutions. Certified resolutions of the Board of
                 ---------------------
Directors of Seller approving the execution and delivery of this Agreement and
each of the other documents delivered by Seller pursuant thereto and authorizing
the consummation of the transactions contemplated hereby and thereby.

          13.1.3 Officer's Certificate. A certificate, dated as of the Closing
                 ---------------------
Date, executed on behalf of the Seller in the form described in Section 11.3.
                                                                ------------

          13.1.4 Opinion. Written opinions of Baker & Hostetler LLP and either
                 -------
Baker & Hostetler LLP or Cohn and Marks in substantially the forms attached
hereto as Exhibits B-1 and B-2, dated as of the Closing Date, together with
          --------------------
reliance letters addressed to such of Buyer's financing sources as identified by
Buyer prior to the Closing and entitling such lenders to rely on such opinion to
the same extent as if they were an addressee thereof.

          13.1.5 Good Standing Certificates. Governmental certificates showing
                 --------------------------
that Seller is validly existing and in good standing in the state of its
incorporation and in good standing in each state listed on Schedule 6.1.1,
                                                           --------------
certified as of a date not more than ten business days before the Closing Date.

          13.1.6 Evidence of Release of Encumbrances. Evidence satisfactory to
                 -----------------------------------
Buyer's counsel of the release of any and all Liens with respect to the Stations
Assets.

          13.1.7 Indemnification Escrow Agreement. A copy of the Indemnification
                 --------------------------------
Escrow Agreement, duly executed by Seller and the Indemnification Escrow Agent.

          13.1.8 Earnest Money Escrow Agreement. Evidence that the Earnest Money
                 ------------------------------
Letter of Credit, any replacement funds therefor or any funds deposited in lieu
thereof have been returned to Buyer pursuant to the terms and conditions
contained in the Earnest Money Escrow Agreement referenced in Section 17.3.2.
                                                              --------------

          13.1.9 Other Documents. Such additional information and materials as
                 ---------------
Buyer shall reasonably request.

                                       33
<PAGE>

     13.2 Documents to be Delivered by Buyer. At the Closing, Buyer will deliver
          ----------------------------------
to Seller the following, at the expense of Buyer and in proper form for
recording when appropriate:

          13.2.1 Purchase Price. A wire transfer of cash in immediately
                 --------------
available funds of the amount of the Purchase Price and evidence of such
delivery.

          13.2.2 Assumption Agreement(s). One or more assumption agreements
                 -----------------------
relating to Buyer's assumption of the Assumed Liabilities in form and substance
mutually agreeable to the parties hereto.

          13.2.3 Certified Resolutions. Certified resolutions of the Board of
                 ---------------------
Directors of Buyer approving the execution and delivery of this Agreement and
each of the other documents delivered by Buyer pursuant hereto and authorizing
the consummation of the transactions contemplated hereby and thereby.

          13.2.4 Officer's Certificate. A certificate, dated the Closing Date,
                 ---------------------
executed on behalf of the Buyer in the form described in Section 12.3.
                                                         ------------

          13.2.5 Opinion. A written opinion of Weil, Gotshal & Manges LLP in
                 -------
substantially the form attached hereto as Exhibit C, dated as of the Closing
                                          ---------
Date.

          13.2.6 Good Standing Certificates. Governmental certificates showing
                 --------------------------
that Buyer is validly existing and in good standing in the state of its
incorporation certified as of a date not more than ten business days before the
Closing Date.

          13.2.7 Indemnification Escrow Agreement. A copy of the Indemnification
                 --------------------------------
Escrow Agreement, duly executed by Buyer.

          13.2.8 Other Documents. Such additional information and materials as
                 ---------------
Seller shall reasonably request.

                                   ARTICLE 14

                          SURVIVAL AND INDEMNIFICATION
                          ----------------------------

     14.1 Survival of Representations, Warranties and Covenants. The
          -----------------------------------------------------
representations, warranties and covenants of Seller and of Buyer contained in
this Agreement or in any Transfer Document shall survive the Closing until the
expiration of one (1) year from the Closing Date, except for those covenants
that, by their terms, shall survive for a longer period, including, without
limitation, the covenants contained in Sections 8.1.11, 8.1.14 and 9.1.2. Any
                                       ---------------  ------     -----
claim for indemnification with respect to any of such matters which is not
asserted by notice given as herein provided relating thereto within such
specified period of survival may not be pursued and is hereby irrevocably waived
after such time. Any claim for an Indemnifiable Loss (as defined in Section
                                                                    -------
14.2) asserted within such period of survival as herein provided will be timely
----
made for purposes hereof. A claim for any Idemnifiable Loss by any party based
on a breach of a

                                       34
<PAGE>

representation or warranty of the other party shall not be affected by any
investigation performed by the party seeking recovery of the Indemnifiable Loss.

     14.2 Limitations on Liability. (a) For purposes of this Agreement, (i)
          ------------------------
"Indemnity Payment" means any amount of Indemnifiable Losses required to be paid
 -----------------
pursuant to this Agreement, (ii) "Indemnitee" means any person or entity
                                  ----------
entitled to indemnification under this Agreement, (iii) "Indemnifying Party"
                                                         ------------------
means any person or entity required to provide indemnification under this
Agreement, (iv) "Indemnifiable Losses" means any and all damages, losses,
                 --------------------
liabilities, obligations, costs and expenses, and any and all claims, demands or
suits (by any person or entity, including, without limitation, any Governmental
Entity), including, without limitation, the costs and expenses of any and all
actions, suits, proceedings, demands, assessments, judgments, settlements and
compromises relating thereto and including reasonable attorneys' fees and
expenses in connection therewith, and (v) "Third Party Claim" means any claim,
                                           -----------------
action or proceeding made or brought by any person or entity who or which is not
a party to this Agreement or an Affiliate of a party to this Agreement.

               (b) Notwithstanding any other provision hereof or of any
applicable law, no Indemnitee will be entitled to make a claim against an
Indemnifying Party hereunder for any breach of a representation or warranty
under Section 14.3(a)(i) or 14.3(b)(i) unless and until the aggregate amount of
      ------------------    ----------
claims asserted for Indemnifiable Losses exceeds $150,000, in which event the
Indemnitee will be entitled to make a claim against the Indemnifying Party to
the extent of the full amount of Indemnifiable Losses. Notwithstanding the
foregoing, the aggregate amount of claims which may be asserted for
Indemnifiable Losses with respect to breaches of representations and warranties
under Sections 14.3(a)(i) or 14.3(b)(i) shall in no event exceed $5,000,000.
      -------------------    ----------

     14.3 Indemnification.
          ---------------

               (a) Subject to Sections 14.1 and 14.2, Seller agrees to
                              -------------     ----
indemnify, defend and hold harmless Buyer and its Affiliates and their
respective directors, officers, partners, employees, agents and representatives
from and against any and all Indemnifiable Losses to the extent relating to,
resulting from or arising out of:

                    (i) any breach of any representation or warranty of Seller
under the terms of this Agreement and any certificate or other document
delivered pursuant hereto;

                    (ii) any breach or nonfulfillment of any agreement or
covenant of Seller under the terms of this Agreement;

                    (iii) any Retained Liabilities;

                    (iv) any failure to comply with any "bulk sales" laws
applicable to the transactions contemplated hereby; and

                                       35
<PAGE>

                    (v) the conduct of the business and operations of the
Stations or any portion thereof or the use or ownership of any of the Stations
Assets prior to the Closing Date.

               (b) Buyer agrees to indemnify, defend and hold harmless Seller
and its Affiliates and their respective directors, officers, partners,
employees, agents or representatives from and against any and all Indemnifiable
Losses to the extent relating to, resulting from or arising out of:

                    (i) any breach of representation or warranty of Buyer under
the terms of this Agreement and any certificate or other document delivered
pursuant hereto;

                    (ii) any breach or nonfulfillment of any agreement or
covenant of Buyer under the terms of this Agreement;

                    (iii) any Assumed Liabilities; and

                    (iv) the conduct of the business and operations of the
Stations or any portion thereof or use or ownership of any of the Stations
Assets on or after the Closing Date.

     14.4 Defense of Claims.
          -----------------

               (a) If any Indemnitee receives notice of assertion or
commencement of any Third Party Claim against such Indemnitee with respect to
which an Indemnifying Party is obligated to provide indemnification under this
Agreement, the Indemnitee will give such Indemnifying Party reasonably prompt
written notice thereof, but in any event not later than 30 calendar days after
receipt of such notice of such Third Party Claim. Such notice will describe the
Third Party Claim in reasonable detail, will include copies of all material
written evidence thereof and will indicate the estimated amount, if reasonably
practicable, of the Indemnifiable Loss that has been or may be sustained by the
Indemnitee. The Indemnifying Party will have the right to participate in, or, by
giving written notice to the Indemnitee, to assume, the defense of any Third
Party Claim at such Indemnifying Party's own expense and by such Indemnifying
Party's own counsel (reasonably satisfactory to the Indemnitee), and the
Indemnitee will cooperate in good faith in such defense.

               (b) If, within ten calendar days after giving notice of a Third
Party Claim to an Indemnifying Party pursuant to Section 14.4(a), an Indemnitee
                                                 ---------------
receives written notice from the Indemnifying Party that the Indemnifying Party
has elected to assume the defense of such Third Party Claim as provided in the
last sentence of Section 14.4(a), the Indemnifying Party will not be liable for
                 ---------------
any legal expenses subsequently incurred by the Indemnitee in connection with
the defense thereof; provided, however, that if the Indemnifying Party fails to
                     --------  -------
take reasonable steps necessary to defend diligently such Third Party Claim
within ten calendar days after receiving written notice from the Indemnitee that
the Indemnitee believes the Indemnifying Party has failed to take such steps, or
if the Indemnifying Party has not undertaken fully to indemnify the Indemnitee

                                       36
<PAGE>

in respect of all Indemnifiable Losses relating to the matter, the Indemnitee
may assume its own defense, and the Indemnifying Party will be liable for all
reasonable costs or expenses paid or incurred in connection therewith. Without
the prior written consent of the Indemnitee, the Indemnifying Party will not
enter into any settlement of any Third Party Claim which would lead to liability
or create any financial or other obligation on the part of the Indemnitee for
which the Indemnitee is not entitled to indemnification hereunder. If a firm
offer is made to settle a Third Party Claim without leading to liability or the
creation of a financial or other obligation on the part of the Indemnitee for
which the Indemnitee is not entitled to indemnification hereunder and the
Indemnifying Party desires to accept and agree to such offer, the Indemnifying
Party will give written notice to the Indemnitee to that effect. If the
Indemnitee fails to consent to such firm offer within ten calendar days after
its receipt of such notice, the Indemnitee may continue to contest or defend
such Third Party Claim and, in such event, the maximum liability of the
Indemnifying Party as to such Third Party Claim will not exceed the amount of
such settlement offer, plus costs and expenses paid or incurred by the
Indemnitee through the end of such ten calendar day period.

               (c) A failure to give timely notice or to include any specified
information in any notice as provided in Sections 14.4(a) or 14.4(b) will not
                                         ----------------    -------
affect the rights or obligations of any party hereunder except and only to the
extent that, as a result of such failure, any party which was entitled to
receive such notice was deprived of its right to recover any payment under its
applicable insurance coverage or was otherwise damaged as a result of such
failure.

               (d) The Indemnifying Party will have a period of 30 calendar days
within which to respond in writing to any claim by an Indemnitee on account of
an Indemnifiable Loss which does not result from a Third Party Claim (a "Direct
                                                                         ------
Claim"). If the Indemnifying Party does not so respond within such 30 calendar
-----
day period, the Indemnifying Party will be deemed to have rejected such claim,
in which event the Indemnitee will be free to pursue such remedies as may be
available to the Indemnitee on the terms and subject to the provisions of this
Article 14.
----------

               (e) If the amount of any Indemnifiable Loss, at any time
subsequent to the making of an Indemnity Payment, is reduced by recovery,
settlement or otherwise under or pursuant to any insurance coverage, or pursuant
to any claim, recovery, settlement or payment by or against any other entity,
the amount of such reduction, less any costs, expenses, premiums or taxes
incurred in connection therewith (together with interest thereon from the date
of payment thereof at the annualized rate of interest equal to the "prime" or
"reference" rate of interest as publicly announced by the Wall Street Journal
and in effect from time to time during the relevant period, calculated on the
basis of the actual number of days elapsed over 365) will promptly be repaid by
the Indemnitee to the Indemnifying Party. Upon making any Indemnity Payment the
Indemnifying Party will, to the extent of such Indemnity Payment, be subrogated
to all rights of the Indemnitee against any third party that is not an Affiliate
of the Indemnitee in respect of the Indemnifiable Loss to which the Indemnity
Payment related; provided, however, that (i) the Indemnifying Party shall then
                 --------  -------
be in compliance with its obligations under this Agreement in respect of such
Indemnifiable Loss and (ii) until the Indemnitee

                                       37
<PAGE>

recovers fully payment of its Indemnifiable Loss, any and all claims of the
Indemnifying Party against any such third party on account of said Indemnity
Payment will be subrogated and subordinated in right of payment to the
Indemnitee's rights against such third party. Without limiting the generality or
effect of any other provision hereof, each such Indemnitee and Indemnifying
Party will duly execute upon request all instruments reasonably necessary to
evidence and perfect the above-described subrogation and subordination rights.

     14.5 Exclusive Remedy. To the fullest extent permitted by law, the sole and
          ----------------
exclusive remedy of Buyer and Seller after the Closing with respect to any claim
or cause of action asserted by Buyer or Seller relating to, or arising from,
breaches of the representations, warranties or covenants of the other party
contained in this Agreement or in any document, list, schedule, exhibit,
certificate or other instrument furnished, or to be furnished by or on behalf of
such other party or any of its representatives, in connection with the
transactions contemplated by this Agreement shall be limited to the rights of
Buyer and Seller under, and shall be subject to the terms and conditions of,
this Article 14, other than actions for fraud or based on claims relating to
     ----------
intentional misconduct or causes of action seeking specific performance or other
equitable remedies. Nothing in this Section 14.5 shall effect any rights of the
                                    ------------
parties under Section 17.3.
              ------------

                                   ARTICLE 15

                        TRANSFER TAXES; FEES AND EXPENSES
                        ---------------------------------

     15.1 Expenses. Except as set forth in Sections 15.2 and 15.3 below, each
          --------                         -------------     ----
party hereto shall be solely responsible for all costs and expense incurred by
it in connection with the negotiation, preparation and performance of, and
compliance with, the terms of this Agreement.

     15.2 Transfer Taxes and Similar Charges. All costs of transferring the
          ----------------------------------
Stations Assets in accordance with this Agreement, including recordation,
transfer and documentary taxes and fees, and any excise, sales or use taxes,
shall be borne by Seller. Buyer and Seller agree to cooperate with each other
and to file all necessary documentation (including, but not limited to, all Tax
Returns) with respect to all such amounts in a timely manner.

     15.3 Governmental Filing or Grant Fees. Except as provided herein, any
          ---------------------------------
filing or grant fees imposed by any governmental authority, the consent of or
filing with which is required for the consummation of the transactions
contemplated hereby, including but not limited to, the FCC, shall be borne
equally by Buyer and Seller.

                                   ARTICLE 16

                              SPECIFIC PERFORMANCE
                              --------------------

     16.1 Specific Performance. In addition to any other remedies which Buyer
          --------------------
may have at law or in equity, Seller hereby acknowledges that the Stations
Assets are unique,

                                       38
<PAGE>

and that the harm to Buyer resulting from a breach by Seller of its obligations
to sell the Stations Assets to Buyer cannot be adequately compensated by
damages. Accordingly, Seller agrees that Buyer shall have the right to have this
Agreement specifically performed by Seller and hereby agrees not to assert any
objections to the imposition of the equitable remedy of specific performance by
any court of competent jurisdiction.

                                   ARTICLE 17

                                   TERMINATION
                                   -----------

     17.1 Termination Rights. This Agreement may be terminated at any time prior
          ------------------
to Closing as follows:

               (a) by the mutual consent of Buyer and Seller;

               (b) by written notice of (i) Buyer to Seller if Seller breaches
in any material respect any of its representations or warranties or defaults in
any material respect in the observance or in the due and timely performance of
any of its covenants or agreements herein contained and such breach or default
shall not be cured within thirty (30) days of the date of notice of breach or
default served by Buyer or (ii) Seller to the Buyer if Buyer breaches in any
material respect any of its representations or warranties or defaults in any
material respect in the observance or in the due and timely performance of any
of its covenants or agreements herein contained and such breach or default shall
not be cured within thirty (30) days of the notice of breach or default served
by Seller; but such notice and cure period shall not apply in the case of
Buyer's or Seller's failure to consummate the transactions in accordance with
the terms and times specified in Section 4.1 of this Agreement;
                                 -----------

               (c) by Buyer or Seller by written notice to the other, if a court
of competent jurisdiction or other Governmental Entity shall have issued an
order, decree or ruling or taken any other action (which order, decree or ruling
the parties hereto shall use their best efforts to lift), in each case
permanently restraining, permanently enjoining or otherwise prohibiting the
transactions contemplated by this Agreement, and such order, decree, ruling or
other action shall have become final and nonappealable;

               (d) by the party whose qualifications are not at issue, if, for
any reason, the FCC denies or dismisses any of the FCC Applications and the time
for reconsideration or court review under the Communications Act with respect to
such denial or dismissal has expired and there is not pending with respect
thereto a timely filed petition for reconsideration or request for review;

               (e) by written notice of Buyer to Seller if the FCC Consents
impose a material adverse condition on Buyer that (i) is unrelated to Buyer's
qualifications and relates to a manner in which the Stations have been operated
prior to the commencement of the Time Brokerage Agreement, and (ii) the time for
reconsideration or court review under the Communications Act with respect to
such

                                       39
<PAGE>

condition(s) has expired without the filing with respect thereto of a timely
petition for reconsideration or request for review;

               (f) by written notice of Buyer to Seller, in the event that
Seller has not obtained, on or before June 30, 2000, any consent or approval of
its shareholders, as contemplated by Section 8.1.12 hereto;
                                     --------------

               (g) by either party, in the event that the Closing does not occur
at or before 5:00 p.m. central time on the date that is one (1) year from the
date that this Agreement is executed;

               (h) in the event that the Time Brokerage Agreement is terminated
pursuant to Section 13 or 14 thereof, by the party that terminated the Time
            ----------    --
Brokerage Agreement, or by either party as a result of the expiration of the
term of the Time Brokerage Agreement other than by the occurrence of the
Closing, unless otherwise agreed to in writing by the parties hereto;

               (i) by written notice of Buyer to Seller, in accordance with
Section 10.1, 10.6 or 18.1; or
------------  ----    ----

               (j) by written notice of Seller to Buyer, if the Earnest Money
Letter of Credit, or cash in lieu thereof, has not been deposited with the
Earnest Money Escrow Agent on or before June 30, 2000.

Notwithstanding the foregoing, no party hereto may effect a termination hereof
if such party is in material default or breach of this Agreement.

     17.2 Procedures and Effect of Termination. In order to effect the
          ------------------------------------
termination of this Agreement pursuant to, and in accordance with, the terms and
conditions of any provision of Section 17.1, written notice of such termination
                               ------------
shall be given to the other party to this Agreement and this Agreement, assuming
the relevant provision of Section 17.1 has been satisfied, shall terminate and
                          ------------
the transactions contemplated hereby shall be abandoned, without further action
by either of the parties hereto. If this Agreement is terminated as provided
herein:

               (a) upon request therefor, each party shall redeliver all
documents, work papers and other materials of the other party hereto, and all
copies of any such materials, relating to the transactions contemplated hereby,
whether obtained before or after the execution hereof, to the party furnishing
the same; and

               (b) neither party hereto shall have any liability or further
obligation to the other party to this Agreement resulting from such termination
except: (i) that the provisions of Section 10.2 (Confidentiality), Section 15.1
                                   ------------                    ------------
(Expenses), this Section 17.2 and Section 17.3 shall remain in full force and
                 ------------     ------------
effect and the parties shall have the obligations stated therein, and (ii) no
party waives any claim or right for damages against a breaching party to the
extent that such termination results from the breach by a party hereto of any of
its representations, warranties, covenants or agreements set forth herein.

                                       40
<PAGE>

     17.3 Termination Fees
          ----------------

          17.3.1 If Seller terminates this Agreement pursuant to Section
                                                                 -------
17.1(b)(ii), Buyer will, within ten (10) business days of receiving notice from
-----------
Seller of such termination, pay to Seller a termination fee equal to $2,200,000.
Buyer's obligation to pay such termination fee will be secured by the Earnest
Money Letter of Credit more particularly described in Section 17.3.2 below. If
                                                      --------------
Buyer does not pay such termination fee to Seller within ten (10) business days
following receipt of such notice from Seller, Seller may thereafter instruct the
Earnest Money Escrow Agent (as defined below) to deliver the Earnest Money
Letter of Credit to Seller to permit Seller to draw thereon.

          17.3.2 On or before June 30, 2000, Buyer shall deposit an original,
irrevocable letter of credit (the "Earnest Money Letter of Credit"), issued by
                                   ------------------------------
Fleet Bank Boston in the amount of $2,200,000, or cash in lieu thereof, in
accordance with the Earnest Money Escrow Agreement substantially in the form of
Exhibit D hereto (the "Earnest Money Escrow Agreement"), to be held in escrow
---------              ------------------------------
with the escrow agent (the "Earnest Money Escrow Agent") named therein. Subject
                            --------------------------
to satisfaction or waiver of the conditions to Seller's obligations hereunder,
as set forth in Article 12, at Closing, Seller shall instruct the Earnest Money
                ----------
Escrow Agent to release and return the Earnest Money Letter of Credit to Buyer
or any funds in lieu thereof for cancellation. If this Agreement is terminated
by Seller as provided in Section 17.1(b)(ii), Seller may, as described above,
                         -------------------
instruct the Earnest Money Escrow Agent to release the Earnest Money Letter of
Credit or any funds in lieu thereof to Seller. In all other events, Seller shall
join in instructions to the Earnest Money Escrow Agent to return the Earnest
Money Letter of Credit or any funds in lieu thereof to Buyer.

                                   ARTICLE 18

                                  RISK OF LOSS
                                  ------------

     18.1 Risk of Loss.
          ------------

               (a) The risk of loss or damage to the Stations Assets shall be
upon Seller at all times prior to the Closing Date, unless such loss or damage
was caused by Buyer or by any employee of Buyer. Until the commencement date of
the Time Brokerage Agreement, Seller shall promptly notify Buyer of any such
loss or damage. If the lost or damaged Stations Assets are capable of being
replaced or repaired for an aggregate amount less than $500,000, then Seller
shall, at its sole cost and expense, replace or repair such Stations Assets
prior to the Closing Date or deliver to Buyer at the Closing an amount in cash
equal to the cost of replacement or repair of such Stations Assets, as mutually
agreed in good faith by Buyer and Seller, unless such loss or damage was caused
by Buyer or by any employee of Buyer. Notwithstanding the foregoing, if the
amount required to replace or repair such Stations Assets exceeds $500,000,
Seller may elect not to replace or repair such Stations Assets, provided,
                                                                --------
however, that in such event Buyer, at its option, may elect to terminate this
-------
Agreement without either party being subject to a claim by the other for damages
in connection with this Section 18.1(a), or waive any default or breach with
                        ---------------
respect to the loss or damage and receive a $500,000

                                       41
<PAGE>

reduction in the Purchase Price credit at Closing. Either party may extend the
Closing Date by up to 30 days, subject to Section 17.1(g) hereto, in order to
                                          ---------------
allow Seller to complete the repair or replacement.

               (b) Seller shall use its commercially reasonable best efforts to
avoid either of the Stations being off the air for three (3) or more consecutive
days or for five (5) or more days in any thirty (30) day period. Until the
commencement date of the Time Brokerage Agreement, Seller shall give prompt
written notice to Buyer if either of the following (each, a "Specified Event")
                                                             ---------------
shall occur: (i) the regular broadcast transmissions of the Stations in the
normal and usual manner are interrupted or discontinued for more than thirty
(30) minutes or (ii) either of the Stations is operated at less than its
licensed antenna height above average terrain or at less than ninety percent
(90%) of its licensed effective radiated power. If any Specified Event (other
than a Specified Event that is caused by Buyer or by any employee of Buyer) that
may reasonably be expected to have a material adverse effect on the business,
operations or prospects of the Stations persists for more than one hundred and
twenty (120) hours (or, in the event of utility failure affecting generally the
market served by the Stations, one hundred and sixty-eight (168) hours), whether
or not consecutive, during any period of thirty (30) consecutive days, then
Buyer may terminate this Agreement by written notice given to Seller not more
than ten (10) days after the expiration of such thirty (30) day period (without
either party being subject to a claim by the other party for damages in
connection with this Section 18.1(b)).
                     ---------------

               (c) Resolution of Disagreements. If the parties are unable to
                   ---------------------------
agree upon the extent of any loss or damage, the cost to repair, replace or
restore any lost or damaged property, the adequacy of any repair, replacement,
or restoration of any lost or damaged property, or any other matter arising
under this Section 18.1, the disagreement shall be referred to a qualified
           ------------
consulting communications engineer mutually acceptable to Seller and Buyer who
is a member of the Association of Federal Communications Consulting Engineers,
whose decision shall be final, binding upon and non-appealable by the parties,
and whose fees and expenses shall be paid one-half by Seller and one-half by
Buyer.

                                   ARTICLE 19

                            MISCELLANEOUS PROVISIONS
                            ------------------------

     19.1 Certain Interpretive Matters and Definitions. Unless the context
          --------------------------------------------
otherwise requires, (a) all references to Sections, Articles or Schedules are to
Sections, Articles or Schedules of or to this Agreement, (b) each term defined
in this Agreement has the meaning assigned to it, (c) each accounting term not
otherwise defined in this Agreement has the meaning assigned to it in accordance
with generally accepted accounting principles as in effect on the date hereof,
(d) "or" is disjunctive but not necessarily exclusive, (e) words in the singular
     --
include the plural and vice versa, and (f) the term "Affiliate" has the meaning
                       ----------                    ---------
given it in Rule 12b-2 of Regulation 12B promulgated under the Exchange Act. All
references to "$" or dollar amounts will be to lawful currency of the United
States of America.

                                       42
<PAGE>

     19.2 Further Assurances. At and after the Closing, Seller shall from time
          ------------------
to time, at the request of, and without further cost or expense to, Buyer,
execute and deliver such other instruments of assignment, conveyance and
transfer and take such other actions as may reasonably be requested in order to
more effectively consummate the transactions contemplated hereby, and Buyer
shall from time to time, at the request of, and without further cost or expense
to, Seller, execute and deliver such other instruments and take such other
actions as may reasonably be requested in order to more effectively assume the
Assumed Liabilities.

     19.3 Assignment. Neither this Agreement nor any of the rights, interests or
          ----------
obligations hereunder shall be assigned by any of the parties hereto, whether by
operation of law or otherwise; provided, however, that without releasing Buyer
                               --------  -------
from any of their obligations or liabilities hereunder (a) nothing in this
Agreement shall limit Buyer's ability to sell or transfer any or all of its
respective assets (whether by sale of stock or assets, or by merger,
consolidation or otherwise) without the consent of Seller, (b) nothing in this
Agreement shall limit Buyer's ability to assign the Stations Assets (including
the right to acquire the Stations Assets at the Closing) and/or any or all of
Buyer's additional rights and obligations hereunder to any Affiliate or
subsidiary of Buyer without the consent of Seller; provided Buyer remains
obligated to perform its obligation under this Agreement and such assignment
does not delay the Closing, and (c) nothing in this Agreement shall limit
Buyer's ability to make a collateral assignment of its rights under this
Agreement to any institutional lender that provides funds to Buyer without the
consent of Seller. Seller shall execute an acknowledgment of such assignment(s)
and collateral assignments in such forms as Buyer or its institutional lenders
may from time to time reasonably request; provided, however, that unless written
                                          --------  -------
notice is given to Seller that any such collateral assignment has been
foreclosed upon, Seller shall be entitled to deal exclusively with Buyer as to
any matters arising under this Agreement or any of the other agreements
delivered pursuant hereto. In the event of such an assignment, the provisions of
this Agreement shall inure to the benefit of and be binding on Buyer's
successors and assigns.

     19.4 Amendments. No amendment, waiver of compliance with any provision or
          ----------
condition hereof or consent pursuant to this Agreement shall be effective unless
evidenced by an instrument in writing signed by the party against whom
enforcement of any waiver, amendment, change, extension or discharge is sought.

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

     19.6 Governing Law. The construction and performance of this Agreement
          -------------
shall be governed by the laws of the State of Ohio without giving effect to the
choice of law provisions thereof.

     19.7 Notices. Any notice, demand or request required or permitted to be
          -------
given under the provisions of this Agreement shall be in writing and shall be
deemed to have been duly delivered and received when electronically confirmed if
sent by telecopy; on

                                       43
<PAGE>

the date of personal delivery; on the third day after deposit in the U.S. mail
if mailed by registered or certified mail, postage prepaid and return receipt
requested; on the day after delivery to a nationally recognized overnight
courier service if sent by an overnight delivery service for next morning
delivery and shall be addressed to the following addresses (or at such other
address which party shall specify to the other party in accordance herewith):

               (a)  In the case of Seller, to:

                    Beaverkettle Company
                    P.O. Box 9917
                    Canton, Ohio 44702-2112
                    Attention: Theodore Boyd
                    Telecopy:  (330) 580-2444

                    With copies to:

                    Baker & Hostetler LLP
                    312 Walnut Street
                    Cincinnati, Ohio 45202
                    Attention: William Appleton
                    Telecopy:  (513) 929-0303

                                and

                    Jackman Stroud Vodrey
                    517 Broadway
                    East Liverpool, Ohio 43920-3154
                    Telecopy:  (330) 385-3999

               (b)  In the case of Buyer:

                    NextMedia Group, Inc.
                    6312 S. Fiddler's Green Circle
                    Suite 360E
                    Englewood, Colorado 80111
                    Attention: Sean Stover
                    Telecopy:  (303) 694-4940

                    With a copy to:

                    Weil, Gotshal & Manges LLP
                    100 Crescent Court
                    Suite 1300
                    Dallas, Texas 75201
                    Attention: Glenn D. West
                    Telecopy:  (214) 746-7777

                                       44
<PAGE>

                                and

                    Leibowitz and Associates, P.A.
                    Suite 1450
                    Suntrust International Center
                    One Southeast Third Avenue
                    Miami, Florida 33131-1715
                    Attention: Matthew L. Leibowitz
                    Telecopy:  (305) 530-9417

     19.8 Schedules. The schedules and exhibits attached to this Agreement and
          ---------
the other documents delivered pursuant hereto are hereby made a part of this
Agreement as if set forth in full herein.

     19.9 Entire Agreement. This Agreement contains the entire agreement among
          ----------------
the parties hereto with respect to its subject matter and supersedes all
negotiations, prior discussions, agreements, letters of intent, and
understandings, written or oral, relating to the subject matter of this
Agreement.

     19.10 Severability. If any provision of this Agreement is held to be
           ------------
unenforceable, invalid, or void to any extent for any reason, that provision
shall remain in force and effect to the maximum extent allowable, and the
enforceability and validity of the remaining provisions of this Agreement shall
not be affected thereby.

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

     19.12 No Third-Party Rights. Nothing in this Agreement, express or implied,
           ---------------------
shall be construed to confer upon any person, other than the parties hereto,
their successors and permitted assigns, any legal or equitable rights, remedies,
claims, obligations or liabilities under or by reason of this Agreement.

     19.13 Attorneys' Fees. In the event either party to this Agreement shall
           ---------------
employ legal counsel to protect its rights under this Agreement or to enforce
any term or provision of the Agreement, then the party prevailing in any such
action shall have the right to recover from the other party all of its
reasonable attorneys' fees, costs and expenses incurred in connection with the
action.

            [The remainder of this page is intentionally left blank.]

                                       45
<PAGE>

          IN WITNESS WHEREOF, each of the parties has caused this Agreement to
be duly executed and delivered as of the date first above written.

                                     SELLER:

                                     BEAVERKETTLE COMPANY

                                     By:________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                     By:________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                     BUYER:

                                     NEXTMEDIA GROUP, INC.

                                     By:________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

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