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Exhibit 10.18    
  

 
 

ASSET PURCHASE AGREEMENT    
  

        THIS ASSET PURCHASE AGREEMENT (this "Agreement") is made as of the 3rd day of March, 2003
("Effective Date"), by and among First Broadcasting Investments, L.P. ("Seller"), HBC
Sacramento, Inc. ("HBC Sacramento") ("HBC Sacramento"), HBC License Corporation
("HBC License" and together with HBC Sacramento, "Station Purchaser"), and HBC Broadcasting Texas, L.P.
("HBC Texas" and together with Station Purchaser, the "Purchaser"). 

W I T N E S S E T H: 

        WHEREAS,
Seller is the licensee of radio station KNGT(FM) (the "Station"), licensed to Jackson, California and authorized by the Federal
Communications Commission (the "FCC") to operate at 94.3 MHz; and 

        WHEREAS,
Seller owns the assets which are used in the operation of the Station; and 

        WHEREAS,
Seller owns a broadcasting tower and related real estate and building located at the coordinates of North 32-35-10.5 Latitude, West
097-49-53.1 Longitude, approximately kilometers north of Granbury, Texas (the "Granbury Tower Assets"); and 

        WHEREAS,
Seller desires to sell to Purchaser, and Purchaser desires to purchase from Seller, (i) certain of the radio station properties and assets relating to the Station and
(ii) the Granbury Tower Assets (collectively referred to herein as the "Purchased Assets"), as described herein under the terms and conditions
herein set forth; 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto agree as follows: 

1.    PURCHASE AND SALE OF ASSETS.

        1.1  Purchase and Sale of Purchased Assets.

A.    Subject
to the conditions set forth in this Agreement, at the Closing (as defined hereinafter), Seller shall assign, transfer, convey and deliver to Station Purchaser, and Station
Purchaser shall purchase from Seller, all right, title and interest in and to the following assets, free and clear of all Liens (other than Permitted Liens): 

        (a)  all
licenses, construction permits or authorizations issued by or pending before the FCC or any other governmental authority for use in the operation of the Station that
are set forth on Schedule 1.1(a) attached hereto, together with any and all renewals, extensions and modifications thereof (the
"Governmental Licenses"); 

        (b)  the
leasehold interests of Seller at the transmitter site located at 20200 South Cedar Lane, Pine Grove, CA 95665 (North Latitude, 38 degrees, 24 minutes, 10 seconds;
West Longitude, 120 degrees, 39 minutes, 15 seconds) (the "Transmitter Site"), and at the studio site located at 1500 S. Highway 49, Suite 206, Jackson,
CA 95642 (the "Studio Site"); 

        (c)  all
towers, antennas, transmission equipment and other tangible personal property of Seller located at or used in conjunction with the Transmitter Site (the
"Transmitter Equipment"); 

        (d)  the
other items of tangible personal property used, or intended for use, primarily in the operation of the Station, all as described on  Schedule 1.1(d) hereto; 

        (e)  the
call letters, Marti frequencies and internet domain names of the Station; 

        (f)    unless
as may be otherwise required by law, the books and records related to the Purchased Assets, such as property tax records, logs, all materials maintained in the
FCC public file relating to the Station, technical data, political advertising records and all other records, 

 

correspondence with and documents pertaining to governmental authorities and similar third parties (the "Business Records"); and 

        (g)  the
contracts and agreements listed on Schedule 1.1(g) attached hereto (the "Assumed
Contracts"). 

B.    Subject
to the conditions set forth in this Agreement, at the Closing (as defined hereinafter), Seller shall assign, transfer, convey and deliver to HBC Texas, and HBC Texas shall
purchase from Seller, all right, title and interest in and to the Granbury Tower Assets, free and clear of all Liens (other than Permitted Liens): 

        1.2  Excluded Assets.    In no event shall the Purchased Assets be deemed to include: 

        (a)  the
cash and cash equivalents of Seller or the Station (except for any normal and customary deposits with respect to the Purchased Assets for which a proration
adjustment is made in Seller's favor pursuant to Section 16.2); 

        (b)  any
accounts receivable, notes receivable or other receivables of Seller (including tax refunds); 

        (c)  any
items of intellectual property of the Station, except as specifically set forth in Section 1.1 above; 

        (d)  the
corporate seal, minute books, charter documents, corporate stock record books and other books and records that pertain to the organization of Seller; 

        (e)  securities
of any kind owned by Seller; 

        (f)    insurance
contracts or proceeds thereof; 

        (g)  claims
arising out of acts occurring before the Closing Date; and 

        (h)  any
agreements not included among the Assumed Contracts. 

        1.3  Liabilities to be Assumed.    Subject to the terms and conditions of this Agreement, on the Closing Date,
Purchaser expressly does not and shall not assume or agree to perform and discharge any Liabilities of Seller except (a) Liabilities that relate to or arise from the ownership or operation of
the Purchased Assets from and after the Closing Date, (b) Liabilities under the Assumed Contracts that relate to or arise from and after the Closing Date and (c) Liabilities for which
Purchaser receives a credit, and only to the extent of such credit, in connection with the determination of the proration items pursuant to  Section 16.2 of this Agreement (the Liabilities described
in subparagraphs (a), (b) and (c) of this  Section 1.3, collectively, the "Assumed Liabilities"). 

        1.4  Liabilities Not to be Assumed.    Except as and to the extent specifically set forth in  Section 1.3 of this Agreement, Purchaser is not
assuming any Liabilities of Seller, and all such Liabilities shall be and remain the
responsibility of Seller. Notwithstanding the provisions of Section 1.3 of this Agreement, Purchaser is not assuming, and Seller shall not be
deemed to have transferred to Purchaser the following Liabilities: 

        (a)  Any
Liability with respect to any action, suit, proceeding, arbitration, investigation or inquiry, whether civil, criminal or administrative
("Litigation") related to or arising from the period prior to the Closing Date. 

        (b)  All
Liabilities incurred by Seller in connection with the preparation and negotiation of this Agreement and the consummation of the transactions contemplated herein,
including, without limitation, tax liabilities (except to the extent otherwise allocated pursuant to Section 16.2 hereof), the fees and expenses
of attorneys, accountants, investigators, auditors, consultants and brokers to Seller. 

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        (c)  Except
to the extent Purchaser receives a credit pursuant to the determination of the proration items pursuant to  Section 16.2 hereof, any Liability of Seller for Federal income taxes and any state or
local income, profit, franchise or property taxes, and any
penalties or interest due on account thereof. 

        (d)  Liabilities
of Seller for any breach or failure to perform any of its covenants and agreements contained in, or made pursuant to, this Agreement, or, prior to the
Closing, any other contract,
whether or not assumed hereunder, including any breach arising from assignment of contracts hereunder without consent of third parties. 

        (e)  Liabilities
of Seller for any violation of a Law or Order. 

        (f)    Liabilities
of Seller to its present or former Affiliates. 

        (g)  Liabilities
to or in respect of employees of the Station, including salary, payroll taxes, unemployment compensation, pension, profit sharing, retirement, bonus,
medical, dental, life, accident insurance, disability, executive or deferred compensation, and other similar fringe or employee benefit plans. 

        (h)  Liabilities
of Seller for borrowed money or for interest on such borrowed money. 

        (i)    Liabilities
of Seller resulting from the failure to comply with, or imposed pursuant to, any Environmental Law (as hereinafter defined), prior to the Closing or
resulting from the Release (as hereinafter defined) of Hazardous Substances (as hereinafter defined), in relation to the Station to the extent related to, arising from or otherwise attributable to
Seller's acts or omissions prior to or conditions existing as of the Closing Date, including, without limitation, any liability or obligation for cleaning up waste disposal sites from or related to
Seller's acts or omissions on or prior to the Closing Date. 

        (j)    Any
agreements not included among the Assumed Contracts listed on Schedule 1.1(g), including, but not limited to trade and barter agreements. 

2.    PURCHASE PRICE; CLOSING.

        2.1  Purchase Price.    The consideration to be received by Seller in exchange for the Purchased Assets shall be
Twenty Four Million Dollars ($24,000,000), payable in cash at the Closing by wire transfer of immediately available funds. 

        2.2  Time of Closing.    

        (a)  The
closing (the "Closing") for the sale and purchase of the Purchased Assets shall be held at the offices of Purchaser
(or such other place as may be agreed upon by the parties in writing). The Closing
shall occur on such date (the "Closing Date") that is five business days after the satisfaction of all conditions precedent to the parties' obligations
hereunder, but in no event prior to May 1, 2003. The Closing shall be deemed to be effective as of 12:01 a.m. on the Closing Date. 

        (b)  In
order to consummate the transfer of the Purchased Assets, Seller and Purchaser agree to use their reasonable best efforts to file, within five business days after the
date hereof, an assignment of license application (the "FCC Applications") requesting FCC consent to the assignment from Seller to HBC License of the
FCC Licenses. In the event that the merger of Hispanic Broadcasting Corporation and Univision Communications Inc. ("Univision"), MB Docket No. 02-235, has not been
consummated at the time the FCC Applications are to be filed, the FCC Applications also shall include an application seeking consent to the assignment from Seller to HBC License as owned and
controlled by Univision. Station Purchaser shall use its best efforts to secure the cooperation of Univision in the preparation and prosecution of the FCC Applications. The parties agree that the FCC
Applications will be prosecuted with reasonable best efforts, in 

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good faith and with due diligence. The parties agree to use their reasonable best efforts to file additional information or amendments requested by the FCC orally or in writing within five business
days after such request and, in any event, to commence preparation of such additional information or amendments immediately upon request and to complete and file the same with the FCC as rapidly as
practical. Each party will be solely responsible for the expenses incurred by it in the preparation, filing and prosecution of the FCC Applications (it being understood that the parties will bear
equally the FCC filing fee payable in connection with the FCC Applications). 

        (c)  As
used herein, the term "FCC Order" shall mean that the FCC (or the staff of the FCC's Media Bureau pursuant to
delegated authority) has granted or given its initial consent, without any condition materially adverse to Purchaser or Seller, to the assignment of the FCC Licenses as contemplated in the FCC
Applications. 

        2.3  [Intentionally Omitted.]    

        2.4  Closing Procedure.    At the Closing, Seller shall deliver to Purchaser such bills of sale, instruments of
assignment, transfer and conveyance documents and other similar documents as Purchaser shall reasonably request in a form reasonably acceptable to both Seller and Purchaser. Against such delivery,
Purchaser shall (i) issue and deliver to Seller the purchase price in accordance with Section 2.1 above and (ii) execute and
deliver the assumption agreement with respect to the Assumed Liabilities. Each party will cause to be prepared, executed and delivered all other documents required to be delivered by such party
pursuant to this Agreement. All actions taken at the Closing shall be deemed to have been taken simultaneously at the time the last of any such actions is taken or completed. 

        2.5  Allocation of Purchase Price.    The Purchase Price shall be allocated among the Purchased Assets in a manner
as mutually agreed to in writing between the parties, based upon an appraisal of the Purchased Assets by Bond & Pecaro (the fees of which firm shall be paid by the Purchaser). Seller and
Purchaser
agree to use the allocations determined pursuant to this Section 2.5 for all tax purposes, including without limitation, those matters subject to
Section 1060 of the Internal Revenue Code of 1986, as amended. 

        2.6  Escrow Agreement.    On the Effective Date, Purchaser and Seller shall execute the escrow agreement attached
hereto as Schedule 2.6 ("Escrow Agreement") and, pursuant to the Escrow Agreement, Purchaser shall deliver one million two hundred thousand
dollars ($1,200,000) to Bank of New York Trust Company of Florida, N.A. ("Escrow Agent"), which amount, but not the interest thereon, shall be retained
by Escrow Agent and applied to the Purchase Price at Closing. Following the Closing, the interest earned on this deposit shall promptly be delivered to Purchaser. If this Agreement is terminated in
accordance with the provisions of Section 13 herein due to breach or default by the Seller, Escrow Agent shall refund to Purchaser the deposit and all accrued interest thereon within ten
(10) days of termination of this Agreement. If this Agreement is terminated in accordance with the provisions of Section 13 herein due to breach or default on the part of the Purchaser,
Escrow Agent shall pay to the Seller the deposit together with all interest accrued thereon within ten (10) days of termination of this Agreement. 

3.    REPRESENTATIONS AND WARRANTIES OF SELLER.    

        Seller
hereby represents and warrants to Purchaser, as follows: 

        3.1  Organization; Good Standing.    Seller is a Delaware limited partnership, duly organized, validly existing and
in good standing under the laws of the State of Delaware. Seller has all requisite power and authority to own and lease its properties and carry on its business as currently conducted. 

        3.2  Due Authorization.    Subject to the FCC Order, Seller has full power and authority to enter into and perform
this Agreement and to carry out the transactions contemplated hereby. Seller has 

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taken all necessary corporate action to approve the execution and delivery of this Agreement and the transactions contemplated hereby. This Agreement constitutes the legal, valid and binding
obligation of Seller, enforceable against it in accordance with its terms, except as may be limited by the availability of equitable remedies or by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors' rights generally. 

        3.3  Execution and Delivery.    Neither the execution and delivery by Seller of this Agreement nor the consummation
by Seller of the transactions contemplated hereby will: (i) conflict with or result in a breach of any provisions of Seller's organizational documents; (ii) subject to the FCC Order,
violate any Law or Order of any court or Governmental Entity, which violation, either individually or in the aggregate, might reasonably be expected to have a material adverse effect on Purchaser's
ownership of the Purchased Assets; (iii) except as set forth on Schedule 3.3, violate or conflict with or constitute a
default under (or give rise to any right of termination, cancellation or acceleration under), or result in the creation of any Lien on any of the Purchased Assets pursuant to, any material agreement,
indenture, mortgage or other instrument to which Seller is a party or by which it or its assets may be bound or affected; or (iv) subject to the FCC Order, affect or violate the terms or
conditions of or result in the cancellation of the FCC Licenses. 

        3.4  Absence of Undisclosed Liabilities.    Except as and to the extent specifically disclosed in  Schedule 3.4, Seller does not have any Liabilities
relating to the Purchased Assets other than Liabilities incurred in the ordinary course of
business and consistent with past practice and none of which has had or would be reasonably likely to have a Material Adverse Effect. 

        3.5  Governmental Consents.    No approval, authorization, consent, order or other action of, or filing with, any
Governmental Entity is required in connection with the execution and delivery by Seller of this Agreement or the consummation by Seller of the transactions contemplated hereby, other than those of the
FCC. 

        3.6  Title to Purchased Assets.    On the Closing Date, Seller shall have good and marketable title to all the
Purchased Assets, free and clear of all Liens, except for Permitted Liens. Except for approval of the transfer of ownership by the FCC and the Third Party Consents, none of the Purchased Assets are
subject to any restriction with respect to the transferability thereof. Seller has complete and unrestricted power and right to sell, assign, convey and deliver the Purchased Assets to Purchaser as
contemplated hereby. At Closing, Purchaser will receive good and marketable title to all the Purchased Assets, free and clear of all Liens, except for Permitted Liens. The purchase and sale of the
Purchased Assets and the other transactions contemplated in this Agreement will be free and clear of any and all claims by creditors of Seller under any bulk sales or similar laws or statues. 

        3.7  Transmitter and Studio Sites.    

        (a)  Seller
has a valid and enforceable leasehold interest in and to the Transmitter Site and the Studio Site, free and clear of Liens, except for Permitted Liens. 

        (b)  Seller
has not received any written notice of, and has no knowledge of, any material violation of any zoning, building, health, fire, water use or Law in connection with
the Transmitter Site or the Studio Site. To the knowledge of Seller, no fact or condition exists which would result in the termination or material impairment of access of the Station to the
Transmitter Site or Studio Site or discontinuation of necessary sewer, water, electrical, gas, telephone or other utilities or services, except as set forth on  Schedule 3.7(b). In addition, any and
all additions, modification, and repairs that have been made to the tower constituting the Granbury Tower
Assets have been completed by its manufacturer and have in all respects been performed in compliance with, and the tower is currently in compliance with, all industry standards and the FCC rules and
regulations, and is not currently in need of any material repairs or modifications. 

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        3.8  Tangible Personal Property Assets.    Schedule 1.1(d)
sets forth a list, complete and accurate in all material respects, of the Purchased Assets, which consist of tangible personal property. Except as set forth on  Schedule 1.1(d), all material items
of such tangible personal property are in good condition and working order, ordinary wear and tear excepted,
and are suitable for the uses for which intended, free from any known defects except such minor defects that do not interfere with the continued present use thereof by Seller. 

        3.9  Governmental Licenses.    Schedule 1.1(a) lists and
accurately describes all of the Governmental Licenses necessary for the lawful ownership and operation of the Station and the conduct of their businesses, except where the failure to hold such
Governmental License would not have a Material Adverse Effect. Seller has furnished to Purchaser true and accurate copies of all of the Governmental Licenses. Each such Governmental License is in full
force and effect and is valid under applicable Laws; the Station is being operated in compliance in all material respects with the Communications Act of 1934, as amended, and all rules, regulations
and policies of the FCC; and to the knowledge of Seller, no event has occurred which (whether with or without notice, lapse of time or the happening or occurrence of any other event) is likely to
result in the revocation or termination of any Governmental License or the imposition of any restriction of such a nature as would have a Material Adverse Effect. The Station, each of its physical
facilities, electrical and mechanical systems and transmitting and studio equipment are being operated in all material respects in accordance with the specifications of the Governmental Licenses. The
Governmental Licenses are unimpaired by any act or omission of Seller or any of Seller's officers, directors or employees and Seller has fulfilled and performed all of its obligations with respect to
the Governmental Licenses and has full power and authority thereunder. Except as set forth on Schedule 3.9, no application, action or proceeding
is pending for the renewal or modification of any of the Governmental Licenses. No event has occurred which, individually or in the aggregate, and with or without the giving of notice or the lapse of
time or both, would constitute ground for revocation thereof. 

        3.10 Reports.    Seller has duly filed all reports required to be filed by Law or applicable rule, regulation,
order, writ or decree of any court, Governmental Entity and has made payment of all charges and other payments, if any, shown by such reports to be due and payable, except where the failure to so file
or make payment would not have a Material Adverse Effect. Except as set forth on Schedule 3.10, all reports required to be filed by Seller with
the FCC with respect to the Station have been filed, except where the failure to so file would not, individually or in the aggregate, materially and adversely affect the business, operations,
properties, assets or conditions (financial or otherwise) of the Station or which challenges the validity or propriety of any of the transactions contemplated by this Agreement. Such reports and
disclosures are complete and accurate in all material respects. 

        3.11 Taxes.    

        (a)  All
tax reports and returns required to be filed on or before the execution of this Agreement by Seller relating to the Purchased Assets 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 relating to the
Purchased Assets with respect to any taxable period prior to the Closing Date. All such tax reports and returns are (or will be) complete and accurate in all material respects. 

        (b)  No
claim, judgment, Lien, settlement, writ, or order for assessment or collection of taxes relating to the Purchased Assets has been asserted against Seller. Seller is
not a party to any pending, or to the Seller's knowledge, any threatened, audit, action, suit, claim, litigation, proceeding or investigation by any Governmental Entity for the assessment or
collection of taxes relating to the Purchased Assets. 

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        (c)  Except
for Permitted Liens, no Liens (whether filed or arising by operation of law) have been imposed upon or asserted against any of the Purchased Assets as a result of
or in connection with any failure, or alleged failure to pay any tax. 

        (d)  Seller
has not waived or extended any statutes of limitation for the assessment or collection of taxes relating to the Purchased Assets. To Seller's knowledge, no claim
has been made by a Governmental Entity relating to the Purchased Assets in a jurisdiction where the Seller does not currently file Tax Returns that the Seller may be subject to taxation by that
jurisdiction, nor is Seller aware that any such assertion of tax jurisdiction is pending or threatened. 

        3.12 Environmental Matters.    

        (a)  As
used herein, (i) the term "Environmental Laws" shall mean any and all state, federal, and local statutes,
regulations and ordinances relating to the protection of human health and the environment, (ii) the term "Hazardous Material" shall mean any
hazardous or toxic substance, material, or waste including, without limitation, those substances, materials, pollutants, contaminants and wastes listed in the United States Department of
Transportation Hazardous Materials Table (49 C.F.R. §172.101) or by the United States Environmental Protection Agency as hazardous substances (40 C.F.R. Part 302 and amendments
thereto), petroleum products (as defined in Title I to the Resource Conservation and Recovery Act, 42 U.S.C. §6991-6991(i)) and their derivatives, and such other substances,
materials, pollutants, contaminants and wastes as become regulated or subject to cleanup authority under any Environmental Laws, and (iii) the term
"Release" shall have the meaning set forth in Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
§§9601 et seq. ("CERCLA"). 

        (b)  Seller
represents and warrants that: 

        (i)    all
activities of Seller with respect to the operation of the Station have been and are being conducted in material compliance with all Environmental Laws; 

        (ii)  Seller
has no knowledge of the Release of any Hazardous Material on, in, from or onto the Transmitter Site, except in accordance with Environmental Laws; 

        (iii)  to
Seller's knowledge, no Hazardous Materials are present in any medium at the Transmitter Site in such a manner as requires investigation or remediation under any
Environmental Law; 

        (iv)  to
Seller's knowledge, no polychlorinated biphenyls or substances containing polychlorinated biphenyls are present on the Transmitter Site; and 

        (v)  to
Seller's knowledge, no friable asbestos is present on the Transmitter Site. 

        3.13 Insurance.    Seller has fire, liability and other forms of insurance applicable to the Purchased Assets, each
of which is in an amount customary and standard to the industry practice, in full force and effect on the date hereof, which are, to Seller's knowledge, valid and enforceable in accordance with their
terms and are in an amount consistent with past practices. No event or claim 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, or any reservation of rights, which limits or impairs in any material respect the rights of the insured parties under any such insurance policies
with respect to the Purchased Assets. 

        3.14 Litigation.    There is no Order and no action, suit, proceeding or investigation, judicial, administrative or
otherwise that is pending or, to Seller's knowledge, threatened against or affecting the Station which, if adversely determined would reasonably be expected to have a Material Adverse Effect or which
challenges the validity or propriety of any of the transactions contemplated by this Agreement. 

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        3.15 Contracts and Agreements.    The Station is not in default in any material respect with respect to the Assumed
Contracts, and, as of the Closing Date, the Station will have paid all sums and performed in all material respects all obligations under the Assumed Contracts, which are required to be paid or
performed prior to the Closing Date. In addition, the obligations, costs and expenses associated with
the Assumed Contract, and specifically the Weatherford ground lease referenced on Schedule 1.1(g), will not increase as a result of the consummation of the transactions contemplated in this
Agreement. 

        3.16 Business Records.    Seller has, and after the Closing, Purchaser will have, the right to use the Business
Records included in the Purchased Assets, free and clear of any royalty or other payment obligations. 

        3.17 Third Party Consents.    The only consents from any person or entity which are required to be obtained by
Seller in connection with the execution and delivery by Seller of this Agreement and the consummation of the transactions contemplated hereby are set forth on  Schedule 3.17 (the "Third Party Consents"). 

        3.18 Finders and Brokers.    No person has, as a result of any agreement entered into by Seller, any valid claim
against any of the parties hereto for a brokerage commission, finder's fee or other like payment. 

4.    REPRESENTATIONS AND WARRANTIES OF PURCHASER.    

        Purchaser
hereby represents and warrants to Seller as follows: 

        4.1  Organization and Good Standing.    Each of HBC License and HBC Sacramento is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to own and lease its properties and carry on its business as currently
conducted. HBC Texas is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Texas and has all requisite power and authority to own and lease its
properties and carry on its business as currently conducted. 

        4.2  Due Authorization.    Subject to the FCC Order, Purchaser has full power and authority to enter into this
Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby 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 constitutes the legal, valid and binding obligation of Purchaser, enforceable
against it in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally or general
equitable principles. 

        4.3  Execution and Delivery.    Neither the execution and delivery by Purchaser of this Agreement nor the
consummation of the transactions contemplated hereby will: (i) conflict with or result in a breach of the certificate of incorporation or bylaws of Purchaser; (ii) subject to the FCC
Order, violate any Law or Order of any court or Governmental Entity; or (iii) violate or conflict with or constitute a default under
(or give rise to any right of termination, cancellation or acceleration under) any indenture, mortgage, lease, contract or other instrument to which Purchaser is a party or by which it is bound or
affected. 

        4.4  Consents.    No consent, approval, authorization, license, exemption of, filing or registration with any court,
governmental authority, commission, board, bureau, agency or instrumentality, domestic or foreign, is required by Purchaser in connection with the execution and delivery of this Agreement or the
consummation by Purchaser of any transaction contemplated hereby, other than the consent of the FCC. No approval, authorization or consent of any other third party is required in connection with the
execution and delivery by Purchaser of this Agreement and the consummation of the transactions 

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contemplated hereby, except as may have been previously obtained by Purchaser. Purchaser warrants that it is legally qualified to become a licensee of the Station and is aware of no impediment to the
approval by the FCC of the assignment of the Governmental Licenses to Purchaser. 

        4.5  Finders and Brokers.    No person has, as a result of any agreement entered into by Purchaser, any valid claim
against any of the parties hereto for a brokerage commission, finder's fee or other like payment. 

5.    CERTAIN COVENANTS AND AGREEMENTS.    

        5.1  Consummation of the Transaction.    

        (a)  Each
of Seller and Purchaser shall take all reasonable action necessary to consummate the transactions contemplated by this Agreement and will use all necessary and
reasonable means at its disposal to obtain (and cooperate with the other party in obtaining) all necessary approvals of the FCC and Third Party Consents required to enable it to consummate the
transactions contemplated by this Agreement. Except as otherwise provided herein, each of Seller and Purchaser acknowledges and agrees that it shall pay all costs, fees and expenses incurred by it in
obtaining such necessary consents and approvals. Each party shall make all filings, applications, statements and reports to all Governmental Entities which are required to be made prior to the Closing
Date by or on its behalf pursuant to any statute, rule or regulation in connection with the transactions contemplated by this Agreement, and copies of all such filings, applications, statements and
reports shall be provided to the other. 

        (b)  Seller
will use its reasonable best efforts to obtain all Third Party Consents as promptly as practicable after the date of this Agreement;  provided, that, notwithstanding anything to the contrary set forth in
this Agreement, Seller shall have no obligations to pay money to obtain any Third
Party Consents unless Seller is required to pay money by the express terms of any Assumed Contract in connection with the assignment thereof. All Third Party Consents shall be in form reasonably
satisfactory to Purchaser, and none shall provide for any increase in cost or other change in terms and conditions after the Closing which would be adverse to Purchaser. 

        5.2  Public Announcements.    Prior to the Closing Date, all notices to third parties and other publicity relating
to the transaction contemplated by this Agreement shall be jointly planned and agreed to by Seller and Purchaser; provided, however, that each party
shall be entitled to issue a press release announcing the entering of this Agreement and the transactions contemplated hereby in accordance with its respective obligations under federal securities
laws. 

        5.3  Ordinary Course of Business.    During the period from the date hereof to the Closing Date, unless the prior
consent of Purchaser is first obtained, Seller shall cause the Station to not knowingly take any action which would cause the conditions set forth in  Section 6.1 not to be satisfied as of the
Closing Date. 

        5.4  Control of the Station.    Prior to the Closing, Purchaser shall not, directly or indirectly, control,
supervise, direct, or attempt to control, supervise, or direct, the operations of the Station; such operations, including complete control and supervision of all of the Station's programs, employees,
and policies, shall be the sole responsibility of Seller until the Closing. 

        5.5  Pre-Closing Covenants.    From the date hereof until the Closing or earlier termination of this
Agreement without a closing, Seller covenants and agrees with Purchaser as follows: 

        (a)  Seller
shall operate the Station in the ordinary course of business consistent with past practices. 

9

 

        (b)  Seller
shall maintain, preserve, renew and keep in favor and effect the existence, rights and franchises of Seller that pertain to the Station and shall continue to
comply with the Communications Act, the rules and regulations of the FCC, and all applicable Laws and Orders. 

        (c)  Seller
shall not do or omit any act, or permit any omission to act, which may cause a breach of any material contract, commitment or obligation, or any breach of any
representation, warranty, covenant or agreement made by Seller herein, which would cause the conditions set forth in Section 6.1 not to be
satisfied as of the Closing Date. 

        (d)  Seller
shall not, without prior consent of the Purchaser, create, assume or permit to exist any Lien affecting any of the Purchased Assets, except for Permitted Liens. 

        (e)  Seller
shall not, without prior consent of the Purchaser, cause or permit any action or failure to act that would cause the Governmental Licenses to expire or be
surrendered or adversely modified, or take any action or fail to take any action that would cause the FCC or any other Government Entity to institute proceedings for the suspension, revocation or
adverse modification of any of the Governmental Licenses. 

        (f)    Seller
shall maintain all of Seller's insurance related to the Purchased Assets in effect as of the date hereof. 

        (g)  Seller
shall maintain the Purchased Assets in good repair and condition, ordinary wear and tear excepted, and shall use, operate, maintain and repair, and replace with
an asset of equal or greater value, if necessary, the Purchased Assets in a normal business manner. 

        (h)  Seller
shall not directly or indirectly (through a representative or otherwise) solicit or furnish any information to any prospective buyer, commence, or conduct
presently ongoing, discussions or negotiations with any other party or enter into any agreement with any other party concerning the sale of the Station or the Purchased Assets or any part thereof (an
"Acquisition Proposal"), and Seller shall immediately advise Purchaser of the receipt of any written Acquisition Proposal. 

        5.7  Update of Schedules.    From time to time after the execution of this Agreement and prior to the Closing,
Seller will use reasonable best efforts to promptly supplement or amend the Schedules delivered in connection herewith with respect to any matter which exists or occurs after the date of this
Agreement and which, if existing or occurring at or prior to the date of this Agreement, would have been required to be set forth or described in the Schedules or which is necessary to correct any
information therein; provided, however, that the provisions of this Section 5.7 are informational
only and Purchaser shall not be bound to the terms of any changed Schedules unless they are incorporated into this Agreement by a written amendment signed by Purchaser. 

6.    CONDITIONS TO PURCHASER'S CLOSING.    

        All
obligations of Purchaser under this Agreement shall be subject to the fulfillment at or prior to the Closing of the following conditions, it being understood that Purchaser may, in
its sole discretion, waive any or all of such conditions in whole or in part: 

        6.1  Representations, Etc.    Seller shall have performed in all material respects the covenants and agreements
contained in this Agreement that are to be performed by it at or prior to the Closing. The representations and warranties of Seller contained in this Agreement shall be true and correct as of the
Closing Date with the same effect as though made at such time (except as contemplated or permitted
by this Agreement), except where the failure of such representations and warranties to be true and correct would not, individually or in the aggregate, have a Material Adverse Effect. 

        6.2  FCC Order.    The FCC Order shall have been granted. 

10

 

        6.3  No Injunctions.    No order or temporary, preliminary or permanent injunction or restraining order shall have
been entered which would have the effect of (i) making any of the transactions contemplated hereby illegal or (ii) materially adversely affecting the value of the Purchased Assets. 

        6.4  Third Party Consents.    The Third Party Consents listed on Schedule 3.17 hereto shall have been
obtained in form reasonably acceptable to Purchaser, without the imposition of any additional cost or other conditions materially adverse to Purchaser. 

        6.5  Material Adverse Effect.    No Material Adverse Effect shall have occurred since the date of this Agreement. 

        6.6  Closing Deliveries.    Purchaser shall have received each of the documents or items required to be delivered to
it pursuant to Section 8.1 hereof. 

        6.7  Modification Agreement.    Seller and Nevada County Broadcasters, Inc., licensee of Station KNCO(FM),
Grass Valley, California, shall have entered into a Modification Agreement substantially in the form of Schedule 6.7 and such Modification Agreement shall be in full force and effect as of the
Closing Date. Seller shall have assigned to Purchaser, in a manner reasonably acceptable to Purchaser, all of Seller's rights, title, and interest in the Modification Agreement (it being understood
that Purchaser will not be assuming any liability thereunder). Without the prior written consent of Purchaser, Seller shall not materially amend the Modification Agreement or consent to such amendment
by Nevada County or a subsequent assignee of KNCO(FM) prior to assigning the Modification Agreement to Purchaser. 

7.    CONDITIONS TO SELLER'S CLOSING.    

        All
obligations of Seller under this Agreement shall be subject to the fulfillment at or prior to the Closing of the following conditions, it being understood that Seller may, in its
sole discretion, waive any or all of such conditions in whole or in part: 

        7.1  Representations, Etc.    Purchaser shall have performed in all material respects the covenants and agreements
contained in this Agreement that are to be performed by Purchaser as of the Closing, and the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all
material respects as of the Closing Date with the same effect as though made at such time (except as contemplated or permitted by this Agreement). 

        7.2  FCC Order.    The FCC Order shall have been granted. 

        7.3  No Injunctions.    No order or temporary, preliminary or permanent injunction or restraining order shall have
been entered which would have the effect of (i) making any of the transactions contemplated hereby illegal or (ii) materially adversely affecting the value of the Purchased Assets. 

        7.4  Closing Deliveries.    Seller shall have received each of the documents or items required to be delivered to it
pursuant to Section 8.2. 

        7.5  Third Party Consents.    The Third Party Consents shall have been obtained. 

8.    DOCUMENTS TO BE DELIVERED AT THE CLOSING.    

        8.1  To Purchaser.    At the Closing, there shall be delivered to Purchaser: 

        (a)  The
bills of sale, agreements of assignment and similar instruments of transfer to the Purchased Assets contemplated by  Section 2.4 hereof. 

        (b)  The
Business Records. 

        (c)  The
Third Party Consents, which Seller shall have obtained as of the Closing Date. 

11

 

        (d)  A
termination of the lease of the Granbury Tower Assets in form and substance reasonably acceptable to HBC Texas. 

        (e)  All
other documents to effectuate the transactions contemplated hereby as Purchaser may reasonably request. 

        8.2  To Seller.    At the Closing, there shall be delivered to Seller: 

        (a)  The
purchase price contemplated by Section 2.1 hereof, in the form of wire transfer or cashier's or certified
check as Seller may direct. 

        (b)  An
assumption agreement pursuant to which Purchaser shall assume the Assumed Contracts. 

        (c)  A
termination of the lease of the Granbury Tower Assets in form and substance reasonably acceptable to Seller. 

        (d)  All
other documents to effectuate the transactions contemplated hereby as Seller may reasonably request. 

9.    SURVIVAL.    

        All
representations, warranties, covenants and agreements made by any party to this Agreement or pursuant hereto shall be deemed to be material and to have been relied upon by the
parties hereto and shall survive the Closing for a period of twelve (12) months, provided, however, that notice of any claim against Purchaser or
Seller, whether made under the indemnification provisions hereof or otherwise, based on a breach of a representation, warranty, covenant or agreement must be given within thirty (30) calendar
days from the expiration of such twelve (12) month survival period. The representations and warranties hereunder shall not be affected or diminished by any investigation at any time by or on
behalf of the party for whose benefit such representations and warranties were made. No representation or warranty contained herein shall be deemed to be made at any time after the Closing Date. 

10.    INDEMNIFICATION OF PURCHASER.    

        From
and after the Closing and subject to the limitations set forth in Sections 9 and 12, Seller shall indemnify and hold Purchaser
harmless from, against, for and in respect of: 

        (a)  any
and all damages, costs, losses, expenses, settlement payments, obligations, liabilities, claims, actions or causes of action and encumbrances (collectively, together
with the costs and expenses described in clause (c) below, but excluding any, consequential, or other special damages or lost profits regardless of the theory of recovery, being referred to
herein as "Damages") suffered, sustained, incurred or required to be paid by Purchaser because of the breach of any written representation, warranty,
agreement or covenant of Seller contained in this Agreement or any document or certificate executed and delivered by Seller pursuant to this Agreement; 

        (b)  any
and all Damages arising out of the ownership and operation of the Station at all times prior to the Closing Date; 

        (c)  any
and all Damages arising out of any Liabilities of Seller which are not Assumed Liabilities; 

        (d)  any
and all Damages arising out of the Assumed Contracts in respect of periods prior to the Closing Date; 

        (e)  any
and all Damages arising out of the failure of Seller to comply with any bulk sales statute applicable to the transactions contemplated by this Agreement; 

12

 

        (f)    all
reasonable costs and expenses (including, without limitation, attorneys' fees, interest and penalties) incurred by Purchaser in connection with any action, suit,
proceeding, demand, assessment or judgment incident to any of the matters indemnified against in this Section 10; 

11.    INDEMNIFICATION OF SELLER.    

        From
and after the Closing and subject to the limitations set forth in Sections 9 and 12, Purchaser shall indemnify and hold Seller
harmless from, against, for and in respect of: 

        (a)  any
and all Damages suffered, sustained, incurred or required to be paid by Seller because of the breach of any written representation, warranty, agreement or covenant
of Purchaser contained in this Agreement; 

        (b)  any
and all Damages arising out of the ownership and operation of the Station on and after the Closing Date, except to the extent the same arises from a breach of any
written representation, warranty, agreement or covenant of Seller contained in this Agreement or any document, certificate or agreement executed in connection with this Agreement; 

        (c)  any
and all Damages arising out of the Assumed Liabilities from and after the Closing Date; and 

        (d)  all
reasonable costs and expenses (including, without limitation, attorneys' fees, interest and penalties) incurred by Seller in connection with any action, suit,
proceeding, demand, assessment or judgment incident to any of the matters indemnified against in this Section 11. 

12.    GENERAL RULES REGARDING INDEMNIFICATION.    

        The
obligations and liabilities of each indemnifying party hereunder with respect to claims resulting from the assertion of liability by the other party or indemnified third parties
shall be subject to the following terms and conditions: 

        (a)  The
indemnified party shall give prompt written notice (which in no event shall exceed thirty (30) days from the date on which the indemnified party first became
aware of such claim or assertion) to the indemnifying party of any claim which might give rise to a claim by the indemnified party against the indemnifying party based on the indemnity agreements
contained in Section 11 or 12 hereof, stating the nature and basis of said claims and the amounts thereof, to the extent known. 

        (b)  If
any action, suit or proceeding is brought against the indemnified party with respect to which the indemnifying party may have liability under the indemnity agreements
contained in Section 10 or 11 hereof, the action, suit or proceeding shall, upon the written acknowledgment by the indemnifying party that it is
obligated to indemnify under such indemnity agreement, be defended (including all proceedings on appeal or for review) by the indemnifying party with counsel selected by the indemnifying party;  provided
that the indemnified party also shall have the right to employ its own counsel in any such case at the indemnified party's sole cost and
expense. The indemnified party shall
be kept fully informed of such action, suit or proceeding at all stages thereof whether or not it is represented by separate counsel. 

        (c)  The
indemnified party shall make available to the indemnifying party and its attorneys and accountants all books and records of the indemnified party relating to such
proceedings or litigation and the parties hereto agree to render to each other such assistance as they may reasonably require of each other in order to ensure the proper and adequate defense of any
such action, suit or proceeding. 

        (d)  The
indemnified party shall not make any settlement of any claims without the written consent of the indemnifying party, which consent shall not be unreasonably withheld
or delayed. 

13

 

        (e)  If
any claims are made by third parties against an indemnified party for which an indemnifying party would be liable, and it appears likely that such claims might also
be covered by the indemnified party's insurance policies, the indemnified party shall make a timely claim under such policies and to the extent that such party obtains any recovery from such
insurance, such recovery shall be offset against any sums due from an indemnifying party (or shall be repaid by the indemnified party to the extent that an indemnifying party has already paid any such
amounts). The parties acknowledge, however, that if an indemnified party is self-insured as to any matters, either directly or through an insurer which assesses retroactive premiums based
on loss experience, then to the extent that the indemnified party bears the economic burden of any claims through self-insurance or retroactive premiums or insurance ratings, the
indemnifying party's obligation shall only be reduced by any insurance recovery in excess of the amount paid or to be paid by the indemnified party in insurance premiums. 

        (f)    Except
as herein expressly provided, each of Purchaser and Seller acknowledges and agrees that its sole and exclusive remedy after the Closing with respect to any and
all claims and causes of action under or that are reasonably related to this Agreement, and the other transactions contemplated hereby, the Station, the Purchased Assets and the Assumed Contracts
shall be pursuant to the indemnification provisions set forth in Sections 10, 11 and 12 hereof. Without limiting the foregoing,  Sections 10, 11 and 12 set
forth Purchaser's sole and exclusive remedy against Seller arising under Environmental Laws or regarding environmental
matters or Hazardous Materials, and Purchaser hereby waives and releases any other claim it now has or may in the future have (including contractual, statutory, contractual, or contribution claims)
against Seller with respect to Environmental Laws, environmental matters or Hazardous Materials. 

13.    TERMINATION.    

        13.1 Termination.    This Agreement may be terminated by the mutual written consent of Purchaser and Seller, or, if
the terminating party is not then in material breach of its obligations hereunder, upon written notice as follows: 

        (a)  by
Purchaser if Seller is in material breach of its obligations hereunder, such that the conditions set forth in  Section 6.1 would not be satisfied as of the Closing, and such breach has not been
cured by Seller within fifteen (15) business days of
written notice of such breach; provided, that Seller shall not be entitled to such fifteen (15) business day cure period with respect to any
breach of Seller's obligation to execute and deliver on the Closing Date, the agreements, certificates and documents set forth in Section 8.1; 

        (b)  by
Seller if Purchaser is in material breach of its obligations hereunder, such that the conditions set forth in  Section 7.1 would not be satisfied as of the Closing, and such breach has not been
cured by Purchaser within ten (10) business days of
written notice of such breach; provided, that Purchaser shall have no right to such ten (10) business day cure period with respect to any breach
of Purchaser's obligation to pay the Purchase Price on the Closing Date; 

        (c)  by
either Purchaser or Seller if the FCC designates the FCC Applications for a hearing; or 

        (d)  by
either Purchaser or Seller if the Closing has not occurred on or before the date which is twelve (12) months after the date hereof (the
"Outside Date"); provided, however, that the failure of the Closing to have occurred on or before the
Outside Date shall not be attributable to the breach of this Agreement by the party seeking termination pursuant to this Section 13.1(d). 

        13.2 Effect of Termination.    In the event of termination of this Agreement pursuant to  Section 13.1 above, all rights and obligations of the
parties under this Agreement shall terminate without any liability of any party to any
other party (except for any liability of any party for any material breach of this Agreement, in which case any non-breaching party shall have all rights and remedies available at 

14

 

law or in equity). Notwithstanding anything to the contrary contained herein, the provisions of Sections 15 and 16.1 shall expressly survive the
termination of this Agreement. 

14.    RISK OF LOSS.    

        Seller
shall bear the risk of all damage to, loss of or destruction of any of the Purchased Assets between the date of this Agreement and the Closing Date. If any material portion of the
Purchased Assets (other than items that are obsolete and not necessary for the continued operations of the Station) shall suffer any material damage or destruction prior to the Closing Date, Seller
shall promptly
notify Purchaser in writing of such damage or destruction, shall promptly take all necessary steps to restore, repair or replace such assets at its sole expense, and shall advise Purchaser in writing
of the estimated cost to complete such restoration, repair or replacement and all amounts actually paid as of the date of the estimate. In the event of substantial damage to any of the Purchased
Assets that can not be restored, repaired or replaced prior to the Closing, Purchaser shall have the right to terminate this Agreement by written notice to Seller and shall have no further liability
or obligation hereunder. 

15.    SPECIFIC PERFORMANCE.    

        The
parties acknowledge that the Purchased Assets and the transactions contemplated hereby are unique, that a failure by Seller to complete such transactions will cause irreparable
injury to Purchaser, and that actual damages for any such failure may be difficult to ascertain and may be inadequate. Consequently, Seller agrees that Purchaser shall be entitled, in the event of a
failure by Seller to complete such transactions, to specific performance of any of the provisions of this Agreement in addition to any other legal or equitable remedies to which Purchaser may
otherwise be entitled. If any action is brought by Purchaser against Seller for failure by Seller to complete such transactions, Seller will waive the defense that there is an adequate remedy at law. 

16.    MISCELLANEOUS PROVISIONS.    

        16.1 Expenses.    Except as otherwise expressly provided herein, each party shall pay the fees and expenses
incurred by it in connection with the transactions contemplated by this Agreement. If any action is brought for breach of this Agreement or to enforce any provision of this Agreement, the prevailing
party shall be entitled to recover court costs and reasonable attorneys' fees. Purchaser and Seller shall bear equally the transfer taxes, recording fees and similar costs imposed in connection with
the transfer of the real property assets included in the Purchased Assets. 

        16.2 Prorations.    All items of income and expense arising from the operation of the Station or the ownership and
leasing of the Granbury Tower Assets for periods on or before the close of business on the Closing Date shall be for the account of Seller and thereafter shall be for the account of Purchaser.
Proration of the items described below between Seller and Purchaser shall be effective as of 11:59 p.m., local time, on such date and shall occur as follows with respect to those rights,
liabilities and obligations of Seller transferred to and assumed by Purchaser hereunder. 

        (a)  Liability
for state and local taxes assessed on the Purchased Assets payable with respect to the tax year in which the Closing Date falls and the annual FCC regulatory
fee for the Station payable with respect to the year in which the Closing Date falls shall each be prorated as between Seller and Purchaser on the basis of the number of days of the tax year elapsed
to and including the Closing Date. 

        (b)  Prepaid
items, deposits, credits and accruals such as water, electricity, telephone, other utility and service charges, lease expenses, license fees (if any) and
payments under any contracts or utility services to be assumed by Purchaser shall be prorated between Seller and Purchaser on the basis of the period of time to which such liabilities, prepaid items
and accruals apply. 

        All
prorations shall be made and paid insofar as feasible on the Closing Date; any prorations not made on such date shall be made as soon as practicable (not to exceed ninety
(90) days) thereafter. 

15

 

Seller and Purchaser agree to assume, pay and perform all costs, liabilities and expenses allocated to each of them pursuant to this  Section 16.2. 

        16.3 Amendment.    This Agreement may be amended at any time but only by an instrument in writing signed by the
parties hereto. 

        16.4 Notices.    All notices and other communications hereunder shall be in writing and shall be deemed given if
mailed by certified mail, return receipt requested, or by nationally recognized "next-day" delivery service, to the parties at the addresses set forth below (or at such other address for a
party as shall be specified by like notice), or sent by facsimile to the number set forth below (or such other number for a party as shall be specified by proper notice hereunder): 

If
to Purchaser: 

c/o
Hispanic Broadcasting Corporation

3102 Oak Lawn Avenue, Suite 215

Dallas, Texas 75219

Attention: Jeffrey T. Hinson, Senior Vice President

Telephone: (214) 525-7711

Fax: (214) 525-7750 

If
to Seller: 

c/o
First Broadcasting Company

750 North St. Paul

Tenth Floor

Dallas, TX 75201

Attention: Gary Lawrence, President

Telephone: (214) 855-4927

Fax: (214) 855-5963 

        16.5 Assignment.    This Agreement may not be assigned by either party without the prior consent of the other
party. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs and permitted assigns. 

        16.6 Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. 

        16.7 Headings.    The headings of the Sections of this Agreement are inserted for convenience only and shall not
constitute a part hereof. 

        16.8 Entire Agreement.    This Agreement and the documents referred to herein contain the entire understanding of
the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties, conveyances or undertakings other than those expressly set forth herein. This
Agreement supersedes any prior agreements and understandings between the parties with respect to the subject matter. 

        16.9 Waiver.    No attempted waiver of compliance with any provision or condition hereof, or consent pursuant to
this Agreement, will be effective unless evidenced by an instrument in writing by the party against whom the enforcement of any such waiver or consent is sought. 

        16.10 Governing Law.    This Agreement shall be governed by and construed in accordance with the laws
of the State of Texas, excluding the choice of law rules thereof. 

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

16

 

        "Affiliates" of a party shall mean persons or entities that directly, or indirectly through one or more intermediaries, control or are
controlled by, or are under common control with, such party. 

        "FCC Licenses" shall mean the licenses, construction permits or authorizations issued by or pending before the FCC relating to the Station
and set forth on Schedule 1.1(a). 

        "Governmental Entity" shall mean any court, arbitrator, department, commission, board, bureau, agency, authority, instrumentality or other
body, whether federal, state, municipal, foreign or other. 

        "Law" shall mean any statute, law, ordinance, rule or regulation. 

        "Liability" shall mean and include any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost,
expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted or unasserted, liquidated or unliquidated, secured or unsecured. 

        "Liens" shall mean, statutory or otherwise, security interests, claims, pledges, licenses, equities, options, conditional sales contracts,
assessments, levies, charges or encumbrances of any nature whatsoever. 

        "Material Adverse Effect" or "material adverse effect" shall mean a material adverse effect on the Purchased Assets but shall specifically
exclude any material adverse effect caused by (a) factors affecting the radio industry generally or the market in which the Station operates; (b) general, national, regional or local
economic or financial conditions; (c) new governmental or legislative laws, rules or regulations; or (d) the failure to achieve any financial or operational targets, projections or
milestones set forth in any Seller business plan or budget. 

        "Order" shall mean any order, writ, injunction, judgment, plan or decree of any Governmental Entity. 

        "Permitted Liens" shall mean (a) Liens for taxes not yet due and payable, (b) Liens for which a proration adjustment is made
pursuant to Section 16.2 of this Agreement or (c) in the case of the Granbury Tower Assets, the lease rights in favor of HBC Texas. 

        16.12 Intended Beneficiaries.    The rights and obligations contained in this Agreement are hereby
declared by the parties hereto to have been provided expressly for the exclusive benefit of such entities as set forth herein and shall not benefit, and do not benefit, any unrelated third parties. 

        16.13 Further Assurances.    From time to time, at Seller's request and without further
consideration, Purchaser shall execute and deliver to Seller, such documents, instruments and consents and take such other action as Seller may reasonably request in order to consummate more
effectively the transactions contemplated hereby, to discharge the covenants of Purchaser and to assign to Purchaser the Assumed Liabilities. The Agreement may be terminated immediately by Seller upon
written notice to the Purchaser if the FCC has not accepted and placed on public notice the FCC Applications on or before the tenth day after the filing of the FCC Applications, or if, after such
tenth day, the FCC dismisses,
denies, or otherwise rejects the FCC Applications as inappropriate for grant (except that it is understood and acknowledged that Purchaser will proceed to dismiss one of the FCC Applications upon the
consummation or termination of the merger with Univision). From time to time, at Purchaser's request and without further consideration, Seller shall execute and deliver to Purchaser, such documents,
instruments and consents and take such other action as Purchaser may reasonably request in order to consummate more effectively the transactions contemplated hereby, to discharge the covenants of
Seller and to vest in Purchaser good, valid and marketable title to the Station and the Purchased Assets. 

        16.14 Severability.    If any one or more of the provisions contained in this Agreement should be
found invalid, illegal or unenforceable, in any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
Any illegal 

17

 

or unenforceable term shall be deemed to be void and of no force and effect only to the minimum extent necessary to bring such term within the provisions of applicable law and such term, as so
modified, and the balance of this Agreement shall then be fully enforceable. 

        16.15 Mutual Contribution.    The parties to this Agreement and their counsel have mutually
contributed to its drafting. Consequently, no provision of this Agreement shall be construed against any party on the ground that such party drafted the provision or caused it to be drafted or the
provision contains a covenant of such party. 

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

	

 	
 	
First Broadcasting Investments, L.P.
	

 	
 	

By: First Broadcasting, LLC, its sole general partner
	

 	
 	

By:	
 	

/s/  GARY M. LAWRENCE      
 Gary M. Lawrence

President and Vice Chairman
	

 	
 	
HBC Sacramento, Inc.
	

 	
 	

By:	
 	

/s/  JEFFREY T. HINSON      
 Jeffrey T. Hinson

Senior Vice President and Chief Financial Officer
	

 	
 	
HBC License Corporation
	

 	
 	

By:	
 	

/s/  JEFFREY T. HINSON      
 Jeffrey T. Hinson

Senior Vice President and Chief Financial Officer
	

 	
 	
HBC Broadcasting Texas, LP
	

 	
 	

By HBC GP Texas, Inc.
	

 	
 	

By:	
 	

/s/  JEFFREY T. HINSON      
 Jeffrey T. Hinson

Senior Vice President and Chief Financial Officer

18

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Exhibit 10.18

ASSET PURCHASE AGREEMENTQuickLinks
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Exhibit 10.19    
  

 
 

ASSET PURCHASE AGREEMENT    
  

        This Asset Purchase Agreement ("Agreement"), made as of the 17th day of March, 2003, is by and among Simmons Lone Star
Media, Ltd., a Utah limited partnership ("Licensee"), Simmons-Austin, LLC, a Utah limited liability company ("Operating
Company," and collectively with Licensee, the "Seller"), HBC Broadcasting Texas, L.P., a Texas limited partnership ("HBC Texas"), and  HBC License Corporation, a Delaware corporation ("HBC License" and together with HBC Texas, the "Buyer"). 

RECITALS 

	A.
	Licensee
is the licensee of Radio Station KTND(FM), licensed to Georgetown, Texas (the "Station"), together with related licenses and authorizations issued by the Federal
Communications Commission (the "FCC").

	B.
	Operating
Company is the owner of the operational assets used in the broadcasting of the Station.

	C.
	Operating
Company desires to sell to HBC Texas certain assets, as described herein, relating to the operation of the Station, and HBC Texas desires to purchase such assets on the terms
and conditions contained in this Agreement.

	D.
	Licensee
desires to assign its Federal Communications Commission ("FCC") licenses related to the Station to HBC License, subject to consent of the FCC and the terms of this Agreement.

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

 
 

WITNESSETH:    
  

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

 
 

ARTICLE 1
  ASSETS TO BE CONVEYED    
  

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

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

        (a)  All
licenses, permits, construction permits, and other authorizations issued by the FCC, the Federal Aviation Administration, or any other federal, state or local
governmental authority to Seller, currently in effect and used in the conduct of the business or operations of the Station, together with renewals or modifications thereof and any additions thereto
between the date hereof and the Closing Date, including, without limitation, the licenses, permits and authorizations listed 

 

on Schedule 1.2(a) attached hereto (the licenses, permits and authorizations issued by the FCC collectively are referred to herein as the "FCC
Licenses;" and the FCC Licenses and the licenses, permits and other authorizations issued by any other governmental authority collectively are referred to herein as the "Station Licenses"); 

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

        (c)  Seller's
right, title and interest in and to (i) the transmitter site lease to be entered into by Seller at the New Transmitter Site (as defined in  Section 1.5) upon terms acceptable to Buyer (the
"Transmitter Site Lease"), (ii) the other contracts listed on  Schedule 1.2(c) hereto (together with the Transmitter Site Lease, the "Assumed Contracts"), provided that, as to any such contract
the assignment
of which requires the consent of a party other than Seller, such consent is obtained prior to Closing or (iii) are entered into between the date hereof and the Closing which Seller agrees to
assign, and Buyer agrees to assume, in writing at Closing, provided that, with respect to any such contract the assignment of which requires the consent of a party other than Seller, such consent is
obtained prior to the Closing; 

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

        (e)  All
call letters, websites and website domain names used by the Station; 

        (f)    All
books and records required by the FCC to be kept by the Station; and 

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

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

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

        (b)  All
accounts receivable of Seller; 

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

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

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

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

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

2

 

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

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

        (j)    All
of Seller's right, title and interest in and to the agreements with advertisers to broadcast commercial messages on the Station which have not been performed as of
the Closing; 

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

        (l)    Assets
not used by Seller in the operation of the Station. 

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

        1.5  Upgrade of Station Facilities. The parties intend to undertake certain efforts to upgrade the
Station's signal strength in the greater Austin, Texas metropolitan area, as outlined in the report of Reynolds Technical Associates attached hereto as  Schedule 1.5. The parties covenant to
implement Option I (referenced on Schedule 1.5) as
promptly as practicable. In connection therewith, (i) Seller will, as promptly as practicable and at its expense, file such applications with the FCC requesting that the Station's transmitter
site be permitted to relocate to coordinates on the south side of Georgetown, Texas that are mutually acceptable to Buyer and Seller (the "New Transmitter Site") and that the Station be permitted to
broadcast from the New Transmitter Site as a Class C-3 radio station operating at 499 feet HAAT; (ii) Seller will, at its expense, complete all engineering studies and obtain
all local governmental and third party approvals incident to the commencement of operations at the New Transmitter Site; (iii) Buyer will, at its expense, pay the costs of construction of the
transmission facilities at the New Transmitter Site; (iv) Seller will ensure that radio station KFAN(FM) will apply with the FCC to downgrade from Class C-2 to
C-3 status; and (v) Buyer shall file an application with the FCC requesting that its KXTN(FM) radio station be reclassified as a Class C-0, conditioned upon the
approval of Seller's application. Buyer shall have the sole right and option to determine whether or not the rulemaking contemplated by Option II (referenced on  Schedule 1.5) shall be pursued,
either concurrently with the pursuit of, or following the completion of, Option I. 

        1.6  Time Brokerage Agreement. Concurrently with the execution and delivery of this Agreement, the
parties are entering into a Time Brokerage Agreement (the "Time Brokerage Agreement"), pursuant to which Seller will make the Station's broadcast facilities available to HBC Texas for the broadcast of
programming, including the sale of advertising time in connection therewith by HBC Texas, commencing on April 15, 2003 (the "Time Brokerage Date"). Notwithstanding anything to the contrary
contained in this Agreement or otherwise, Seller shall not be deemed to have breached or failed to comply with any representations, warranties, covenants, or agreements with respect to the Station or
the Station Assets if such breach or failure is due or caused directly by any act, omission or 

3

 

instruction of Buyer under or in connection with the Time Brokerage Agreement or any activities or transactions by Buyer in furtherance thereof or in connection therewith. 

 
 

ARTICLE 2
  PURCHASE PRICE    
  

        2.1  Purchase Price. The purchase price (the "Purchase Price") for the Station Assets shall be
$16,000,000. 

        2.2  Deposit. The Buyer has delivered $800,000 (the "Deposit Amount") to Star Media, as the "Escrow
Agent," subject to an escrow agreement in substantially the form set forth on Schedule 2.2. The Deposit Amount is to be held subject to the
following: 

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

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

        (c)  At
the Closing, the parties shall cause the Deposit Amount (together with interest thereon) to be paid to the Seller. 

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

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

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

4

 

 
 

ARTICLE 3
  REPRESENTATIONS AND WARRANTIES OF SELLER    
  

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

        3.1  Organization and Standing.

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

        (b)  As
of the date of this Agreement through the Closing Date, Licensee (i) is a Utah limited partnership duly formed, validly existing and in good standing under the
laws of the State of Utah and (ii) has all necessary power and authority to carry on the business of the Station. 

        3.2  Authorization and Binding Obligation. As of the date of this Agreement through the Closing Date,
Operating Company and Licensee each has all necessary power and authority to enter into and perform its respective obligations under this Agreement and the documents contemplated hereby and to
consummate the transactions contemplated hereby and thereby. As of the date of this Agreement through the Closing Date, this Agreement has been duly executed and delivered by both Operating Company
and Licensee and is enforceable in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally or the availability of
equitable remedies. 

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

        3.4  Litigation. Other than as set forth on Schedule 3.4, there is no claim, action,
counterclaim, suit, litigation, labor dispute, arbitration, or other legal, administrative, or tax proceeding, nor any order, decree, or judgment, pending, or to the knowledge of either Operating
Company or Licensee threatened, against or relating to either Operating Company or Licensee with respect to the ownership or operation of the Station or otherwise relating to the Station Assets or the
business or operations of the Station. 

        3.5  Station and Other Licenses. 

        (a)  Schedule 1.2(a) contains a true and complete list of the Station Licenses, and there are no other licenses,
permits or other authorizations required for the lawful operation of the Station in the manner now operated. Licensee has made available to Buyer true and complete copies of the Station Licenses
(including any amendments and other modifications thereto). Licensee is the 

5

 

authorized legal holder of the Station Licenses. The Station Licenses are in good standing and in full force and effect. To the best of the knowledge of Licensee, the Station and the facilities of
the Station are being operated in all material respects in accordance with the FCC Licenses and all material FCC rules and policies. 

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

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

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

        3.6  Title to and Condition of Station Assets. 

        (a)  Except
as disclosed on Schedule 1.2(b), Operating Company and Licensee, respectively, have good and marketable
title to the Personal Property free and clear of all Liens. Seller owns no real property in connection with the operation of the Station. 

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

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

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

        3.9  Broker's Fees. As of the date of this Agreement through the Closing Date, other than a payment
owed by Seller to Star Media Group, neither Seller nor any person or entity acting on Seller's 

6

 

behalf has agreed to pay a commission, finder's fee or similar payment in connection with this Agreement or any matter related hereto to any person or entity, and no person or entity is entitled to
any such payment from Seller in connection with the transactions contemplated by this Agreement. 

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

        3.11 Taxes. 

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

        (b)  Operating
Company and Licensee have paid all required state, county, and local sales tax resulting from sales made in the State of Texas, as such taxes relate to the
Station Assets. 

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

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

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

        (a)  Transaction
by Operating Company or Licensee related to the Station entered into except in the ordinary course of business; 

        (b)  Material
adverse change in the financial condition, liabilities, assets, business or prospects of Operating Company or Licensee with respect to the Station; 

7

 

        (c)  Destruction,
damage, or loss of any asset of Operating Company or Licensee (insured or uninsured) that materially and adversely affects the financial condition,
business, or prospects of Operating Company or Licensee with respect to the Station; 

        (d)  Material
change in accounting methods or practices (including any change in depreciation or amortization policies or rates) by Operating Company or Licensee with respect
to the Station; 

        (e)  Sale
or transfer of any material asset used by either Operating Company or Licensee in the operation of the Station, except in the ordinary course of business; 

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

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

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

        3.15 Personnel. 

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

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

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

 
 

ARTICLE 4
  REPRESENTATIONS AND WARRANTIES OF BUYER    
  

        Buyer represents and warrants to Seller as follows: 

        4.1  Organization and Standing. HBC License is a corporation duly formed, validly existing and in good
standing under the laws of the State of Delaware. HBC Texas is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Texas. 

        4.2  Authorization and Binding Obligation. Buyer has all necessary power and authority to enter into
and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement and all other documents required hereby have been duly executed and delivered by
Buyer and constitute valid and binding obligations enforceable against Buyer in accordance 

8

 

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

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

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

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

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

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

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

 
 

ARTICLE 5
  GOVERNMENTAL CONSENTS    
  

        5.1  FCC Application. 

        (a)  The
assignment of the FCC Licenses as contemplated by this Agreement is subject to the prior consent and approval of the FCC. Prior to the Closing, Buyer shall not
directly or indirectly control, supervise, direct, or attempt to control, supervise, or direct, the operations of the Station, and all such operations, including complete control and supervision of
all of the Station' programs, employees, and policies, shall be the sole responsibility of Seller until the Closing. 

        (b)  Within
five business days after the date hereof, Buyer and Seller shall prepare and jointly file a complete and grantable FCC Application, and the parties shall
use reasonable efforts to cause the FCC to accept the FCC Application for filing as soon as practicable thereafter. Seller and Buyer shall thereafter prosecute the FCC Application in good faith and
with all reasonable diligence and otherwise use their best efforts to obtain the grant of the FCC Application as expeditiously as practicable; provided, however, that neither Seller nor Buyer shall
have any 

9

 

obligation to satisfy any complainant or the FCC by taking any steps which would have a material adverse effect upon Seller or Buyer or upon any affiliated entity, but neither the expense nor
inconvenience to a party of defending against a complainant or an inquiry by the FCC shall be considered a material adverse effect on such party. If the FCC Consent imposes any condition on any party
hereto, such party shall use its best efforts to comply with such condition; provided, however, that no party shall be required to comply with any condition that would have a material adverse effect
upon it or any affiliated entity. If rehearing, reconsideration or judicial review is sought by a third party or by the FCC on its own motion with respect to the FCC Consent, Buyer and Seller shall
vigorously oppose such efforts for rehearing, reconsideration or judicial review; provided, however, that nothing herein shall be construed to limit either party's right to terminate this Agreement
pursuant to Article 10 (Termination Rights). 

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

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

 
 

ARTICLE 6
  COVENANTS    
  

        6.1  Conduct of Business.  

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

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

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

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

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

        (v)  Maintain
in full force and effect the Station Licenses and all other licenses, permits and authorizations relating to the Station and take any action necessary before
the FCC, 

10

 

including the preparation and prosecution of applications for renewal of the FCC Licenses, if necessary, to preserve such licenses in full force and effect without material adverse change. 

        (vi)  Maintain
insurance on the Station Assets. 

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

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

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

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

        (xi)  Provide
to Purchaser, in the ordinary course of business and as available, copies of financial statements for the Station in respect of periods on and after
December 31, 2002. 

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

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

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

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

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

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

        6.4  Confidentiality.

        (a)  Buyer
and Seller shall each keep confidential all information obtained by it with respect to the other in connection with this Agreement, except where such information
is known through other lawful sources or where its disclosure is required in accordance with applicable law. If the transactions contemplated hereby are not consummated for any reason, Buyer and
Seller shall return to the other, without retaining a copy thereof in any medium whatsoever, any schedules, 

11

 

documents or other written information, including all financial information, obtained from the other in connection with this Agreement and the transactions contemplated hereby. Except as is required
for the consummation of the transaction contemplated by this Agreement, during the period from the date hereof through the Closing Date, both Buyer and Seller shall also keep confidential the fact
that the parties have entered into this Agreement and all other matters relating to this transaction. 

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

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

        6.6  Employees; ERISA.

        (a)  Employment. The Buyer may, but is not obligated to, offer employment to any of the employees of the Station in positions
and on terms substantially similar to their present employment, effective as of the Time Brokerage Date. To the extent the Buyer employs any employees of the Station and terminates such employees
after the Time Brokerage Date, the Buyer shall be responsible for any severance pay owed to such employee of the Station that the Buyer terminates within one year after the Time Brokerage Date. To the
extent the employees are not offered employment with Buyer and are terminated by Seller, the Seller shall pay to any such employee severance in accordance with the policy of the Station. 

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

        6.7  Agreement with Fritz Broadcasting Co. Attached hereto as  Schedule 6.7 is a true and correct copy of a letter
agreement (as amended to date, the "Fritz Letter Agreement") between Seller and Fritz
Broadcasting Co. ("Fritz"). On and after the Closing, (i) Seller will assign to Buyer its rights to cause Fritz to make certain modifications to KFAN-FM, as contemplated by the
Fritz Letter Agreement, and (ii) Buyer will assume Seller's obligations to pay to Fritz the sum of $900,000 (of which $650,000 is to be paid at Closing and $250,000 is to be placed into an
escrow) and to reimburse Fritz for out-of-pocket costs associated with the modifications to KFAN-FM, all as contemplated by the Fritz Letter Agreement. Further,
Buyer will reimburse Seller at the Closing for the $100,000 down payment previously made by Seller under the Fritz Letter Agreement. 

12

 

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

        6.9  Studio Facility Operations. On or prior to Closing, Seller shall remove all of its operations,
including its AM radio operations (which shall include, but not be limited to, all assets and personnel), other than those pertaining to the Station, from the leased property assumed by Buyer pursuant
to this Agreement. 

 
 

ARTICLE 7
  CONDITIONS PRECEDENT    
  

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

        (a)  Representations, Warranties and Covenants. 

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

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

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

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

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

13

 

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

        (f)    Broadcasting at New Transmitter Site. The Station shall have received program test authority from the FCC as a
Class C-3 radio station and shall be broadcasting from the New Transmitter Site in accordance with such authority. 

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

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

        (a)  Representations, Warranties and Covenants. 

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

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

        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Seller except those that are customary in the assignment of FM licenses. Buyer shall have complied with any conditions imposed on it by the FCC Consent. 

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

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

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

 
 

ARTICLE 8
  DOCUMENTS TO BE DELIVERED AT THE CLOSING    
  

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

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

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

        (i)    an
assignment of the FCC Licenses; 

        (ii)  bills
of sale for all Personal Property; and 

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

14

 

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

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

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

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

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

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

 
 

ARTICLE 9
  INDEMNIFICATION, SURVIVAL    
  

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

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

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

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

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

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

        9.2  Buyer's Indemnities. From and after the Closing, Buyer shall indemnify, defend and hold harmless
Seller and its affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person claiming
by or through any of them, from and against, and reimburse them for, all claims, damages, liabilities, 

15

 

losses, costs and expenses, including, without limitation, interest, penalties, court costs and reasonable attorneys' fees and expenses, resulting from: 

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

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

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

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

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

        (a)  The
party seeking indemnification under this Article 9 (the "Claimant") shall give notice to the party from whom indemnification is sought (the  "Indemnitor") of any claim, reasonably specifying (i) the factual basis for the claim; and
(ii) the amount of the claim if then known. If the claim relates to an action, suit or proceeding filed by a third party against Claimant, notice shall be given by Claimant within fifteen
(15) days after written notice of the action, suit or proceeding was given to Claimant. In all other circumstances, notice shall be given by Claimant within thirty (30) days after
Claimant becomes aware of the facts giving rise to the claim. Notwithstanding the foregoing, Claimant's failure to give Indemnitor timely notice shall not preclude Claimant from seeking
indemnification from Indemnitor if Claimant's failure has not materially prejudiced Indemnitor's ability to defend the claim or litigation. 

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

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

        9.4  Limitations. Neither party shall be required to indemnify the other party under this
Article 9 unless (i) written notice of a claim under this Article 9 was received by the party within the pertinent survival period specified in  Section 9.5; and (ii) the
aggregate amount of claims against the party to which the other party (as a Claimant) is entitled to be
indemnified under this Agreement exceeds $25,000, after which the Claimant shall be entitled to recover, and the Indemnitor shall be obligated for, all additional losses, costs, liabilities, damages
and expenses for Claimant. In calculating the amount of losses to the Buyer or the Seller under Section 9.1 and Section 9.2,
(a) such losses shall be reduced by any recovery received from any third party (including insurance proceeds) as a result of the 

16

 

facts or circumstances giving rise to the losses, and (b) no amount shall be included in such losses except for the party's actual out-of-pocket costs and expenses. 

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

 
 

ARTICLE 10
  TERMINATION RIGHTS    
  

        10.1 Termination. 

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

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

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

        (iii)  the
Closing has not occurred by a date that is one (1) year from the date of this Agreement (the "Upset Date"); 

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

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

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

17

 
 
 

ARTICLE 11
  REMEDIES UPON DEFAULT    
  

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

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

 
 

ARTICLE 12
  OTHER PROVISIONS    
  

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

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

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

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

18

 

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

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

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

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

        12.9 Arbitration. 

        (a)  Arbitration
Disclosures. 

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

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

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

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

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

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

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

        (ii)  The
arbitration proceedings shall be conducted in Austin, Texas at a place to be determined by the Administrator. The Administrator and the arbitrator(s) shall have the
authority to the extent practicable to take any action to require the arbitration proceeding to 

19

 

be completed and the arbitrator(s)' award issued within one hundred twenty (120) days of the filing of the Dispute with the Administrator. 

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

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

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

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

20

 

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

	If to Seller:	 	c/o Simmons Media Group, LLC

515 South 700 East, #1C

Salt Lake City, Utah 84102

Attention: David E. Simmons

Telephone: 801-323-9315

Telecopier 801-323-9316

E-mail: dsimmons@simmonsmedia.com
	

With a copy to:	
 	

Laurie S. Hart

Callister Nebeker & McCullough

Gateway Tower East #900

East South Temple Street

Salt Lake City, UT 84133

Telephone: 801-530-7456

Telecopier: 801-364-9127

E-mail: lshart@cnmlaw.com
	

If to Buyer:	
 	

c/o Hispanic Broadcasting Corporation

3102 Oak Lawn Avenue, Suite 215

Dallas, Texas 75219

Attn: Jeffrey T. Hinson, Senior Vice President

Fax: 214-525-7750

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

Hallett & Perrin

2001 Bryan St., Suite 3900

Dallas, Texas 75201

Attn: Bruce H. Hallett

Fax: 214-922-4170

E-mail: bhallett@hallettperrin.com

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

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

 
 

ARTICLE 13
  DEFINITIONS    
  

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

        "Agreement"
shall mean this Asset Purchase Agreement. 

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

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

21

 

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

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

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

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

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

        "FCC
Application" shall mean the application or applications that Seller and Buyer must file with the FCC requesting its consent to the assignment of the FCC Licenses from Licensee to
HBC License; provided, however, that in the event that the merger of Hispanic Broadcasting Corporation and Univision Communications Inc. ("Univision"), MB Docket No. 02-235,
has not been consummated at the time the FCC Applications are to be filed, the FCC Applications also shall include an application seeking consent to the assignment from Licensee to HBC License as
owned and controlled by Univision. 

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

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

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

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

        "Liens"
shall mean mortgages, deeds of trust, liens, security interests, pledges, collateral assignments, condition sales agreements, leases, encumbrances, claims or other defects of
title, but shall not include (i) liens for current taxes not yet due and payable and (ii) other liens imposed by law (such as materialman's mechanic's, carrier's, worker's and
repairman's liens) arising in the ordinary course of business (provided that such liens do not interfere in any material respect with the use of the Station Assets as currently used and that Seller
remains liable for paying such liens). 

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

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

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

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

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

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

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

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

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

22

 
[signature
page of Asset Purchase Agreement] 

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

	

SELLER	

 	

Simmons-Austin, LLC
	

 	

 	

By:	

 	

/s/  DAVID E. SIMMONS      
 David E. Simmons, Chairman and Manager
	

 	

 	

Simmons Lone Star Media, Ltd.

By Simmons Media Group, LLC (general partner)
	

 	

 	

By:	

 	

/s/  DAVID E. SIMMONS      
 David E. Simmons, Manager
	

BUYER	

 	

HBC License Corporation
	

 	

 	

By:	

 	

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

 	

 	

HBC Broadcasting Texas, L.P.

By HBC GP Texas, Inc. (general partner)
	

 	

 	

By:	

 	

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

23

QuickLinks

Exhibit 10.19

ASSET PURCHASE AGREEMENT

WITNESSETH

ARTICLE 1 ASSETS TO BE CONVEYED

ARTICLE 2 PURCHASE PRICE

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER

ARTICLE 5 GOVERNMENTAL CONSENTS

ARTICLE 6 COVENANTS

ARTICLE 7 CONDITIONS PRECEDENT

ARTICLE 8 DOCUMENTS TO BE DELIVERED AT THE CLOSING

ARTICLE 9 INDEMNIFICATION, SURVIVAL

ARTICLE 10 TERMINATION RIGHTS

ARTICLE 11 REMEDIES UPON DEFAULT

ARTICLE 12 OTHER PROVISIONS

ARTICLE 13 DEFINITIONS

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