Document:

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                                  Exhibit 10.5

                             Deutsche Currency Swap

<PAGE>

                                                                    Exhibit 10.5

                                        CLAYTON UTZ

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Securitisation Advisory Services Pty Limited
ABN 88 064 133 946
Manager

Deutsche Bank AG, New York Branch
Deutsche Bank and Party A

Perpetual Trustee Company Limited
ABN 42 000 001 007
Party B

Commonwealth Bank of Australia
ABN 48 123 123 124
CBA and Standby Swap Provider

Series 2002-1G Medallion Trust
ISDA Master Agreement
(Currency Swap Agreement)

                                  CLAYTON UTZ
                                    Lawyers
       Levels 23-35  No 1 O'Connell Street Sydney  NSW  2000  Australia
           PO Box H3 Australia Square Sydney NSW 1215  DX 370 Sydne
                              ywww.claytonutz.com
                  Tel + 61 2 9353 4000 Fax  + 61 2 9251 7832
             Our ref -  801/784/21697903  Contact - Ben Sandstad

          Sydney . Melbourne . Brisbane . Perth . Canberra . Darwin

    Liability limited by the Solicitors' Limitation of Liability Scheme
           approved under the Professional Standards Act 1994
                                     (NSW)

<PAGE>
                                   Schedule

                                    to the

                               MASTER AGREEMENT

                     dated as of 14 February 2002 between

                Securitisation Advisory Services Pty. Limited
                              ABN 88 064 133 946
                                 ("Manager")

                                     and

                      Deutsche Bank AG, New York Branch

                       ("Deutsche Bank" and "Party A")

                                     and

                      Perpetual Trustee Company Limited
                              ABN 42 000 001 007
in its several capacities as trustee of various Series Trusts from time to time
    established under the Master Trust Deed and various Series Supplements
                                  ("Party B")

                                     and

                        Commonwealth Bank of Australia
                              ABN 48 123 123 124
                      ("CBA" and "Standby Swap Provider")

Part 1. Termination Provisions.

In this Agreement:

(a)     "Specified Entity" does not apply in relation to Party A or Party B.

(b)     The definition of "Specified Transaction" is not applicable.

(c)     (i)     The following provisions of Section 5 will not apply to Party A:

                Section 5(a)(ii)     Section 5(a)(v)
                Section 5(a)(iii)    Section 5(a)(vi)
                Section 5(a)(iv)     Section 5(b)(iv)

        (ii)    The following provisions of Section 5 will not apply to Party B:

                Section 5(a)(ii)     Section 5(a)(v)        Section 5(b)(iv)
                Section 5(a)(iii)    Section 5(a)(vi)
                Section 5(a)(iv)     Section 5(a)(viii)

        (iii)   Section 5(b)(ii) will not apply to Party A as the Affected
                Party (subject to Part 5(6)(b) of this Schedule) and Section
                5(b)(iii) will not apply to Party A as the Burdened Party.

(d)     The "Automatic Early Termination" provisions in Section 6(a) will not
        apply to Party A or Party B.

(e)     Payments on Early Termination.  For the purposes of Section 6(e) of
        this Agreement:

                                                                               1

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       (i)   Market Quotation will apply; and

       (ii)  the Second Method will apply

(f)    "Termination Currency" means US$ provided that if an amount due in
       respect of an Early Termination Date will be payable by Party B to Party
       A the Termination Currency for the purpose of calculating and paying
       that amount is Australian Dollars

(g)    "Additional Termination Event" applies. The following is an
       Additional Termination Event in relation to which both Party A and Party
       B are Affected Parties:

       "An Event of Default (as defined in the Security Trust Deed) occurs and
       the Security Trustee has declared, in accordance with the Security Trust
       Deed, the Relevant Notes immediately due and payable."

       For the purposes of calculating a payment due under Sections 6(d) and
       (e) when an Early Termination Date is designated under Section 6(b) as a
       result of such Additional Termination Event, Party B will be the only
       Affected Party.

Part 2. Tax Representations

(a)    Payer Tax Representations. For the purpose of Section 3(e) of this
       Agreement, Party A and Party B each make the following representation:

       It is not required by any applicable law, as modified by the practice of
       any relevant government revenue authority, of any Relevant Jurisdiction
       to make any deduction or withholding for or on account of any Tax from
       any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of
       this Agreement) to be made by it to any other party under this Agreement.
       In making this representation, it may rely on:

       (i)     the accuracy of any representation made by that other party
               pursuant to Section 3(f) of this Agreement;

       (ii)    the satisfaction of the agreement contained in Section 4(a)(i)
               or 4(a)(iii) of this Agreement and the accuracy and
               effectiveness of any document provided by that other party
               pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement; and

       (iii)   the satisfaction of the agreement of that other party contained
               in Section 4(d) of this Agreement,

       PROVIDED THAT it shall not be a breach of this representation where
       reliance is placed on clause (ii) and the other party does not deliver a
       form or document under Section 4(a)(iii) by reason of material prejudice
       to its legal or commercial position.

(b)    Payee Tax Representations. For the purpose of Section 3(f) of this
       Agreement:

       (i)     Party B and CBA as Standby Swap Provider and(on and from the
               Novation Date) as Party A, each makes the following
               representation:

               It is an Australian resident and does not derive the payments
               under this Agreement in part or whole in carrying on a business
               in a country outside Australia at or through a permanent
               establishment of itself in that country. Party B further
               represents that it is a "foreign trust" for United States tax
               purposes.

       (ii)    Deutsche Bank as Party A makes the following representation:

               Each payment received or to be received by it under each
               Transaction will be effectively connected with its conduct
               by a trade or business in the United States.

                                                                               2

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Part 3. Agreement to Deliver Documents

For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party
agrees to deliver to each other party the following documents, as applicable:

(a)  Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
Party required to deliver      Form/Document/Certificate                  Date by which to be
document                                                                  delivered
<S>                            <C>                                        <C>
Party A, Party B, and the      Any document or certificate reasonably     On the earlier of (a) learning that
Standby Swap Provider          required or reasonably requested by a      such document or certificate is
                               party in connection with its obligations   required and (b) as soon as
                               to make a payment under this               reasonably practicable following
                               Agreement which would enable that          a request by a party.
                               party to make the payment free from
                               any deduction or withholding for or on
                               account of Tax or which would reduce
                               the rate at which deduction or
                               withholding for or on account of Tax is
                               applied to that payment (including,
                               without limitation, any United States
                               form W-8BEN or other relevant United
                               States tax form).

(b) Other documents to be delivered are:

Party required to deliver      Form/Document/Certificate                  Date by which to be
document                                                                  delivered

Party A, Party B, the Standby  A certificate specifying the names, title  On the execution of this
Swap Provider and the          and specimen signatures of the persons     Agreement and each
Manager                        authorised to execute this Agreement       Confirmation unless that
                               and each Confirmation or other             certificate has already been
                               communication in writing made              supplied and remains true and in
                               pursuant to this Agreement on its          effect and when the certificate is
                               behalf.                                    updated.

Party A, Party B, the Standby  A legal opinion as to the validity and     Prior to the Closing Date.
Swap Provider and the          enforceability of its obligations under
Manager                        this Agreement in form and substance
                               (and issued by legal counsel)
                               reasonably acceptable to each other
                               party.

Party B                        A certified copy to Party A of each        Not less than 5 Business Days (or
                               Credit Support Document specified in       such lesser period as Party A
                               respect of Party B and (without            agrees to) before the Trade Date
                               limiting any obligation Party B may        of the first occurring Transaction
                               have under the terms of that Credit        and in the case of any amending
                               Support Document to notify Party A of      documents entered into
                               amendments thereto) a certified copy       subsequent to that date, promptly
                               to Party A of any document that            after each amending document (if
                               amends in any way the terms of that        any)
                               Credit Support
</TABLE>

                                                                               3

<PAGE>

<TABLE>
<S>                            <C>                                        <C>
                               Document.                                  has been entered into.

Party A                        Original executed copies to Party          Not less than 5 Business
                               B and the Standby Swap Provider and a      Days (or such lesser period
                               certified copy to the Manager of each      as Party B and the Manager
                               Credit Support Document (if any)           agree to) before the Trade
                               specified in respect of Party A and        Date of the first occurring
                               (without limiting any obligation Party A   Transaction and in the case
                               may have under the terms of that Credit    of any amending documents
                               Support Document to notify Party B, the    entered into subsequent to
                               Standby Swap Provider or the Manager of    that date, promptly after
                               amendments thereto) original executed      each amending document (if any)
                               copies to Party B and the Standby Swap      has been entered into.
                               Provider and a certified copy to the
                               Manager of any document that amends
                               in any way the terms of that Credit
                               Support Document.
</TABLE>

Other than the legal opinions, any Credit Support Document or any document
amending a Credit Support Document (but including any certifications in
relation to such documents), all documents delivered under this Part 3(b) are
covered by the Section 3(d) representation. For the purposes of this Part 3(b),
a copy of a document is taken to be certified if a director or secretary of the
party providing the document, or a person authorised to execute this Agreement
or a Confirmation on behalf of that party or a solicitor acting for that party
(or in the case of the Credit Support Document in respect of Party B, a
solicitor acting for the Manager) has certified it to be a true and complete
copy of the document of which it purports to be a copy.

Part 4. Miscellaneous

(a)     Addresses for Notices. For the purpose of Section 12(a) of this
        Agreement:

        Address for notices or communications to Deutsche Bank as Party A:

        Address:           Deutsche Bank AG, New York Branch
                           31 West 52nd Street
                           New York
                           NY, 10019
                           USA

        Attention:         Global Asset Securitisation

        Facsimile No.:     1 212 469 7210

        Additionally, a copy of all notices as well as any changes to
        counterparty's address, telephone number or facsimile number should be
        sent to:

        Address:           Deutsche Bank AG, Sydney Branch
                           Level 18
                           225 George Street
                           Sydney  NSW  2000
                           AUSTRALIA

        Attention:         Colin Keays

        Facsimile No.:     612 9258 3632

        Address for notices or communications to Party B:

                                                                               4

<PAGE>

        Address:           Perpetual Trustee Company Limited
                           Level 7
                           9 Castlereagh Street
                           Sydney  NSW  2000
                           AUSTRALIA

        Attention:         Manager, Securitisation Services

        Facsimile No.:     612 9221 7870

        Additionally, a copy of all notices as well as any changes to
        counterparty's address, telephone number or facsimile number should be
        sent to:

        Address:           Securitisation Advisory Services Pty. Limited
                           Level 6
                           48 Martin Place
                           Sydney  NSW  2000
                           AUSTRALIA

        Attention:         Manager, Securitisation

        Facsimile No.:     612 9378 2481

        Address for notices or communications to CBA as Standby Swap Provider:

        Address:           Commonwealth Bank of Australia, New York
                           17th Floor
                           599 Lexington Avenue
                           New York 10022
                           USA

        Attention:         Chris Williams
                           Phil Butters

        Facsimile No.:     1 212 336 7722

        Address for notices or communications to CBA
        (on and from the Novation Date) as Party A:

        Address:           Commonwealth Bank of Australia
                           Level 1
                           48 Martin Place
                           Sydney  NSW  2000
                           AUSTRALIA

        Attention:         Manager, Securitisation

        Facsimile No.:     612 9378 2481

(b)     Process Agent. For the purpose of Section 13(c) of this Agreement:

        Deutsche Bank as Party A appoints as its Process Agent: Deutsche Bank
        AG,
        Sydney Branch, Level 18, 225 George Street, Sydney NSW 2000.

        Party B appoints as its Process Agent: Not applicable.

        CBA as Standby Swap Provider and (on and from the Novation Date) as
        Party A appoints as its Process Agent: Not applicable.

(c)     Offices.  The provisions of Section 10(a) will not apply to this
        Agreement.

                                                                               5

<PAGE>

(d)     Multibranch Party. For the purpose of Section 10(c) of this Agreement:

        Party A is not a Multibranch Party.

        Party B is not a Multibranch Party.

(e)     Calculation Agent.

        (i)     The Calculation Agent is:

                (A)     in respect of all notices, determinations and
                        calculations in respect of amounts denominated in US$,
                        the Agent Bank; and

                (B)     in respect of all other notices, determinations and
                        calculations, the Manager.

        (ii)    All determinations and calculations by the Calculation Agent
                will:

                (A)     be made in good faith and in the exercise of its
                        commercial reasonable judgment; and

                (B)     be determined, where applicable, on the basis of then
                        prevailing market rates or prices.

        All such determinations and calculations will be binding on Party A and
        Party B in the absence of manifest error. The Manager (or, if the
        Manager fails to do so and Party A notifies Party B, Party B) covenants
        in favour of Party A to use reasonable endeavours (including, without
        limitation, taking such action as is reasonably necessary to promptly
        enforce the obligations of the Agent Bank under the Agency Agreement)
        to ensure that the Agent Bank performs its obligations as Calculation
        Agent under this Agreement.

(f)     Credit Support Document. Details of any Credit Support Document:

        (i)     In relation to Deutsche Bank as Party A: Not applicable.

        (ii)    In relation to Party B: The Security Trust Deed.

        (iii)   In relation to CBA as (on and from the Novation Date) Party A:
                Not applicable.

(g)     Credit Support Provider.

        (i)     In relation to Deutsche Bank as Party A: None.

        (ii)    In relation to Party B: None.

        (iii)   In relation to CBA as (on and from the Novation Date) Party A:
                None.

(h)     Governing Law. This Agreement will be governed by and construed in
        accordance with the laws in force in New South Wales, except
        the Credit Support Annex, which will be governed by and
        construed in accordance with the laws in force in the State
        of New York as provided in Paragraph 13(m)(iv) of the Credit
        Support Annex. Section 13(b)(i) is deleted and replaced by the
        following:

                "(i)     submits to the non-exclusive jurisdiction of the
                         courts of New South Wales and courts of appeal from
                         them; and".

(i)     Netting of Payments. Subparagraph (ii) of Section 2(c) of this
        Agreement will apply in respect of all Transactions

                                                                               6

<PAGE>

(j)     "Affiliate" will have the meaning specified in Section 14 of this
        Agreement. However, for the purposes of Section 3(c) Party A and Party
        B are deemed not to have any Affiliates.

Part 5  Other Provisions

(1)     Payments:  In Section 2:

        (a)     In Section 2(a)(i) add the following sentence:

                "Each payment will be by way of exchange for the corresponding
                payment or payments payable by the other party (if any).".

        (b)     In Section 2(a)(ii) the first sentence is deleted and replaced
                with the following sentence:

                "Unless specified otherwise in this Agreement, payments under
                this Agreement by:

                (i)     Party A, will be made by 10.00 am (New York time); and

                (ii)    Party B, will be made by 4.00pm (Sydney time),

                on the due date for value on that date in the place of the
                account specified in the relevant Confirmation or otherwise
                pursuant to this Agreement, in freely transferable funds, free
                of any set-off, counterclaim, deduction or withholding (except
                as expressly provided in this Agreement) and in the manner
                customary for payment in the required currency.".

        (c)     Insert a new paragraph (iv) in Section 2(a) immediately after
                Section 2(a)(iii) as follows:

                "(iv)     The condition precedent in Section 2(a)(iii)(1) does
                          not apply to a payment due to be made to a party if
                          it has satisfied all its payment obligations under
                          Section 2(a)(i) of this Agreement and has no future
                          payment obligations, whether absolute or contingent
                          under Section 2(a)(i).".

        (d)     insert a new paragraph (v) in Section 2(a) immediately after
                Section 2(a)(iv) as follows:

                "(v)      Where payments are due pursuant to Section 2(a)(i) by
                          Party A to Party B (the "Party A Payment") and by
                          Party B to Party A (the "Party B Payment") on the
                          same day, then Party A's obligation to make the Party
                          A Payment will be subject to the condition precedent
                          (which will be an "applicable condition precedent"
                          for the purpose of Section 2(a)(iii)(3)) that
                          Party A first receives either:

                          (1)     the Party B Payment; or

                          (2)     confirmation from Party B's bank that it
                                  holds irrevocable instructions to effect
                                  payment of the Party B Payment and that funds
                                  are available to make payment.".

        (e)     Add the following new sentence to Section 2(b):

                "Each new account so designated shall be in the same tax
                jurisdiction as the original account.".

        (f)     Delete Section 2(d)(i)(4) in its entirety.

        (g)     In Section 2(d)(ii)(1) delete the following words where they
                appear:

                                                                               7

<PAGE>

                "in respect of which X would not be required to pay an
                additional amount to Y under Section 2(d)(i)(4)".

(2)     Party B's Payment Instructions: Party B irrevocably authorises and
        instructs Party A to make payment of:

        (i)     the Initial Exchange Amount due from Party A to Party B in
                respect of the Initial Exchange Date by paying that amount
                direct to the account notified in writing by Party B to Party A
                for that purpose; and

        (ii)    any other amount due from Party A to Party B under this
                Agreement by paying that amount direct to the Principal Paying
                Agent to the account outside Australia notified in writing by
                the Principal Paying Agent to Party A for that purpose.

(3)     Party A's Payment Instructions: Party A irrevocably authorises and
        instructs Party B to make payment of:

        (i)     any amount denominated in A$ due from Party B to the account in
                Sydney notified in writing by Party A to Party B from time to
                time; and

        (ii)    any amount denominated in US$ due from Party B to the account
                notified in writing by Party A to Party B from time to time.

(4)     Representations: In Section 3:

        (a)     Section 3(a)(v) is amended by inserting immediately after the
                words "creditors' rights generally" the following:

                "(including in the case of a party being an ADI (as that term
                is defined in the Banking Act, 1959 (Cth)), section 86 of the
                Reserve Bank Act, 1959 (Cth) or any other analogous provision
                under any law applicable to a party) and section 13A(3) of the
                Banking Act, 1959 (Cth)).".

        (b)     Relationship Between Parties. Each party will be deemed to
                represent to the other parties on the date on which it enters
                into a Transaction that (absent a written agreement between the
                parties that expressly imposes affirmative obligations to the
                contrary for that Transaction):

                (i)     Non-Reliance. It is acting for its own account (in the
                        case of Party B, as trustee of the Series Trust), and
                        it has made its own independent decisions to enter into
                        that Transaction and as to whether that Transaction is
                        appropriate or proper for it based upon its own
                        judgment (and in the case of Party B, also on the
                        judgment of the Manager) and upon advice from such
                        advisers as it has deemed necessary. It is not relying
                        on any communication (written or oral) of any other
                        party as investment advice or as a recommendation to
                        enter into that Transaction; it being understood that
                        information and explanations related to the terms and
                        conditions of a Transaction will not be considered
                        investment advice or a recommendation to enter into
                        that Transaction. No communication (written or oral)
                        received from any other party will be deemed to be an
                        assurance or guarantee as to the expected results of
                        that Transaction.

                (ii)    Evaluation and Understanding. It is capable of
                        evaluating and understanding (on its own behalf or
                        through independent professional advice), and
                        understands and accepts, the terms, conditions and
                        risks of that Transaction. It is also capable of
                        assuming, and assumes, the risks of that Transaction.

                                                                               8

<PAGE>

                (iii)   Status of Parties. No other party is acting as a
                        fiduciary or an adviser to it in respect of that
                        Transaction.

        (c)     Insert the following new paragraphs (g), (h) and (i) in
                Section 3 immediately after Section 3(f):

                "(g)    Series Trust. By Party B, in respect of Party B only:

                        (i)     Trust Validly Created. The Series Trust has
                                been validly created and is in existence at the
                                Trade Date of the first occurring Transaction.

                        (ii)    Sole Trustee. It has been validly appointed as
                                trustee of the Series Trust and is presently
                                the sole trustee of the Series Trust.

                        (iii)   No Proceedings to Remove. No notice has been
                                given to it and to its knowledge no resolution
                                has been passed, or direction or notice has
                                been given, removing it as trustee of the
                                Series Trust.

                        (iv)    Power. It has power under the Master Trust Deed
                                to:

                                (A)     enter into and perform its obligations
                                        under this Agreement and each Credit
                                        Support Document in relation to Party B
                                        in its capacity as trustee of the
                                        Series Trust; and

                                (B)     mortgage or charge the Assets of the
                                        Series Trust in the manner provided in
                                        the Credit Support Document in relation
                                        to Party B,

                                and its entry into this Agreement and each
                                Credit Support Document in relation to Party B
                                is in the interests of the beneficiaries of
                                the Series Trust and does not constitute a
                                breach of trust.

                        (v)     Good Title. It is the lawful owner of the
                                Assets of the Series Trust and, subject only
                                to the Credit Support Document in relation to
                                Party B and any Security Interest permitted
                                under the Credit Support Document in relation
                                to Party B, those Assets are free of all other
                                Security Interests (except for Party B's right
                                of indemnity out of the Assets of the Series
                                Trust).

                        (vi)    Eligible Contract Participant. The Series Trust
                                was not formed for the specific purpose of
                                constituting an "eligible contract participant"
                                under the Commodity Exchange Act).

                        (vii)   Total Assets. As at close of business on the
                                Trade Date of the first occurring Transaction,
                                following the issue of the Relevant Notes and
                                provided that the aggregate Invested Amount of
                                the Relevant Notes upon issue exceeds
                                USD10,000,000, the Series Trust will have total
                                assets exceeding USD10,000,000.

                 (h)    Non-assignment. It has not assigned (whether
                        absolutely, in equity, by way of security or
                        otherwise), declared any trust over or given
                        any charge over any of its rights under this
                        Agreement or any Transaction except, in the
                        case of Party B, for the Security Interests
                        created under

                                                                               9

<PAGE>

                        each Credit Support Document in relation to Party B.

                (i)     Contracting as principal. Each existing Transaction has
                        been entered into by that party as principal and not
                        otherwise.".

(5)     Event of Default: In Section 5(a):

        (a)     Failure to Pay or Deliver: delete paragraph (i) and replace it
                with the following:

                "(i)    Failure to Pay or Deliver. Failure by the party to
                        make, when due, any payment under this Agreement or
                        delivery under Section 2(a)(i) or 2(e) required to be
                        made by it if such failure is not remedied at or
                        before:

                        (1)     where the failure is by Party B, 10.00am on the
                                tenth day after notice of such failure is given
                                to Party B; and

                        (2)     where the failure is by Party A, 10.00am on the
                                tenth day after notice of such failure is given
                                to Party A;";

        (b)     Consequential amendments:

                (i)     delete "or" at the end of Section 5(a)(vii); and

                (ii)    replace the full stop at the end of Section 5(a)(viii)
                        with "; or"; and

        (c)     Downgrade Obligations: insert the following new paragraph (ix):

                "(ix)   Downgrade Obligations. In respect of Party A only,
                        Party A fails to comply with Part 5(22) of the
                        Schedule if such failure is not remedied on or before
                        the tenth Business Day (or such later day as Party B
                        and the Manager may agree and which the Rating Agencies
                        confirm in writing will not result in a reduction,
                        qualification or withdrawal of the credit ratings then
                        assigned by them to the Relevant Notes) after notice of
                        such failure is given to Party A.".

(6)     Termination Events:

        (a)     Illegality: In respect of each Transaction, the parties agree
                that the imposition by any Governmental Agency of an Australian
                jurisdiction of any exchange controls, restrictions or
                prohibitions which would otherwise constitute an Illegality for
                the purposes of Sections 5(b)(i) or 5(c) will not be an event
                which constitutes an Illegality for the purposes of those
                Sections so that, following the occurrence of that event:

                (i)     neither Party A nor Party B will be entitled to
                        designate an Early Termination Date in respect of that
                        Transaction as a result of that event occurring;

                (ii)    payment by Party B in accordance with Part 5(3) of this
                        Schedule will continue to constitute proper performance
                        of its payment obligations in respect of that
                        Transaction; and

                (iii)   Party A's obligations in respect of that Transaction or
                        this Agreement will, to the extent permitted by law, be
                        unaffected by the occurrence of that event.

        (b)     Party A's limited rights in relation to Tax Event:

                (i)     Notwithstanding Part 1(c)(iii) of this Schedule, but
                        subject to Section

                                                                              10

<PAGE>

                        6(b)(ii), Party A may designate an Early Termination
                        Date if it is an Affected Party following a Tax Event
                        but only if the Relevant Note Trustee has notified the
                        parties in writing that it is satisfied that all
                        amounts owing to the Relevant Noteholders will be paid
                        in full on the date on which the Relevant Notes are to
                        be redeemed.

                (ii)    If a Tax Event occurs where Party A is the Affected
                        Party and Party A is unable to transfer all its rights
                        and obligations under this Agreement and each
                        Transaction to an Affiliate pursuant to Section
                        6(b)(ii), Party A may, at its cost,  transfer all its
                        rights, powers and privileges and all its unperformed
                        and future obligations under this Agreement and each
                        Transaction to any person provided that:

                        (A)     each Rating Agency has confirmed in writing that
                                the transfer will not result in a reduction,
                                qualification or withdrawal of the credit
                                ratings then assigned by them to the Relevant
                                Notes; and

                        (B)     that person has a long term credit rating
                                assigned by each Rating Agency of at least the
                                long term credit rating assigned by that Rating
                                Agency to Deutsche Bank as at the date of this
                                Agreement or, otherwise, the Standby Swap
                                Provider provides its written consent to the
                                transfer.

(7)     Termination:

        (a)     Termination by Trustee: Party B must not designate an Early
                Termination Date without the prior written consent of the
                Relevant Note Trustee.

        (b)     Termination by the Relevant Note Trustee: If following an Event
                of Default or Termination Event, Party B does not exercise its
                right to terminate a Transaction, then the Relevant Note
                Trustee may designate an Early Termination Date in relation to
                that Transaction as if it were a party to this Agreement.

        (c)     Termination Payments by Party B: Notwithstanding Section
                6(d)(ii), any amount calculated as being due by Party B in
                respect of any Early Termination Date under Section 6(e) will
                be payable on the Distribution Date immediately following the
                date that such amount would otherwise be payable under Section
                6(d)(ii) (or will be payable on that date if that date is a
                Distribution Date) except to the extent that such amount may be
                satisfied from an earlier distribution under the Security Trust
                Deed or the payment of an upfront premium in respect of a
                Replacement Currency Swap in accordance with Part 5(17)(b) of
                this Schedule.

        (d)     Transfers to avoid Termination:  Section 6(b)(ii) is amended as
                follows:

                (i)     The following sentence is added at the end of the
                        second paragraph:

                        "However, if Party A is that other party it must, if so
                        requested by the Manager, use reasonable efforts (which
                        will not require Party A to incur a loss, excluding
                        immaterial, incidental expenses) to make such a transfer
                        to an Affiliate provided the Rating Agencies have
                        given prior written confirmation to the Manager that
                        such a transfer will not result in a reduction,
                        qualification or withdrawal of the credit ratings
                        then assigned by them to the Relevant Notes.".

                (ii)    The third paragraph is deleted and replaced with the
                        following:

                        "Any such transfer by a party under this Section
                        6(b)(ii) will be subject to and conditional upon the
                        prior written consent of the other party,

                                                                              11

<PAGE>

                        which consent will not be withheld:

                        (1)     where the other party is Party A, if Party A's
                                policies in effect at such time would permit it
                                to enter into transactions with the transferee
                                on the terms proposed; or

                        (2)     where the other party is Party B, if the Rating
                                Agencies have confirmed in writing that such
                                transfer will not result in a reduction,
                                qualification or withdrawal of the credit
                                ratings then assigned by them to the Relevant
                                Notes.".

        (e)     Notice of Event of Default. For the purposes of Section 6(a)
                and (b):

                (i)     Party A may only provide a notice specifying an Event
                        of Default to Party B as the Defaulting Party and may
                        only designate an Early Termination Date following a
                        Termination Event where Party A or Party B (or both) is
                        the Affected Party or the Burdened Party; and

                (ii)    the Standby Swap Provider may not issue a notice
                        specifying an Event of Default or designating an Early
                        Termination Date (except as Party A on or after the
                        Novation Date).

        (f)     Determination of Market Quotation by Party B:  If Party B is
                required to determine a Market Quotation in respect of a
                Terminated Transaction pursuant to Section 6(e), Party B must
                consult with Party A in relation to such determination prior to
                making the determination and must provide to each Reference
                Market-maker in relation to the Market Quotation such
                information in relation to the Terminated Transaction, provided
                by Party A to Party B, as Party A may reasonably request.

(8)     No Set-Off:  Section 6(e) is amended by deleting the last sentence of
        the first paragraph.

(9)     Transfer:  Section 7 is replaced with:

        "7.     Essential term: Transfer

        (a)     Neither the interests nor the obligations of any party in or
                under this Agreement (including any Transaction) are capable of
                being assigned or transferred (whether at law, in equity or
                otherwise), charged or the subject of any trust (other than the
                Series Trust or the trusts created pursuant to the Credit
                Support Document in relation to Party B) or other fiduciary
                obligation. Any action by a party which purports to do any of
                these things is void.

        (b)     Nothing in this Section 7:

                (i)     restricts a transfer by a party after the other parties
                        have agreed to the variation of this Agreement in
                        accordance with Part 5(20) of the Schedule to the
                        extent necessary to permit such transfer;

                (ii)    restricts a novation of the interests and obligations of
                        a party in or under this Agreement (including any
                        Transaction) for the purposes of giving effect to a
                        transfer under Section 6(b)(ii);

                (iii)   restricts a transfer by a party of all or any part of
                        its interest in any amount payable to it from a
                        Defaulting Party under Section 6(e);

                (iv)    restricts a transfer by Party B or the Manager to a
                        Substitute Trustee or Substitute Manager, respectively,
                        in accordance with the Master Trust Deed;

                                                                              12

<PAGE>

               (v)      restricts Party B from granting security over a
                        Transaction or this Agreement pursuant to any
                        Credit Support Document in relation to Party B; or

               (vi)     limits Parts 5(6)(b)(ii), 5(22), 5(23) or 5(24) of the
                        Schedule.

       (c)     Each party acknowledges that the other party enters into this
               Agreement and each Transaction on the basis that this Section 7
               must be strictly observed and is essential to the terms of this
               Agreement (including each Transaction).".

(10)   Facsimile Transmission: In Section 12:

       (a)     delete Section 12(a)(ii); and

       (b)     replace Section 12(a)(iii) with:

               "(iii) if sent by facsimile transmission:

                      (A)  in the case of any notice or other communication
                           pursuant to Parts 5(23) or 5(24) of the Schedule,
                           on the date that transmission is received by a
                           responsible employee of the recipient in legible
                           form (it being agreed that the burden of proving
                           receipt will be on the sender and will not be met
                           by a transmission report generated by the sender's
                           facsimile machine);
                           or

                      (B)  otherwise, on the date a transmission report is
                           produced by the machine from which the facsimile was
                           sent which indicates that the facsimile was sent in
                           its entirety to the facsimile number of the
                           recipient notified for the purpose of this Section
                           unless the recipient notifies the sender within one
                           Business Day of the facsimile being sent that the
                           facsimile was not received in its entirety in
                           legible form;".

(11)   Definitions

       In this Agreement, unless the contrary intention appears:

       (a)     Master Trust Deed: subject to Part 5(11)(h) of this Schedule,
               unless defined in this Agreement words and
               phrases defined in the Master Trust Deed and the Series
               Supplement have the same meaning in this Agreement. Subject to
               Part 5(11)(h) of this Schedule, where there is any inconsistency
               in a definition between this Agreement (on the one hand) and the
               Master Trust Deed or the Series Supplement (on the other hand),
               this Agreement prevails. Where there is any inconsistency in a
               definition between the Master Trust Deed (on the one hand) and
               the Series Supplement (on the other hand), the Series Supplement
               prevails over the Master Trust Deed in respect of the Series
               Trust. Where words or phrases used but not defined in this
               Agreement are defined in the Master Trust Deed in relation to a
               Series Trust (as defined in the Master Trust Deed) such words or
               phrases are to be construed in this Agreement, where necessary,
               as being used only in relation to the Series Trust;

       (b)     Trustee Capacity:

               (i)    a reference to Party B is a reference to Party B in its
                      capacity as trustee of the relevant Series Trust only, and
                      in no other capacity;

               (ii)   a reference to the undertaking, assets, business or money
                      of Party B is a reference to the undertaking, assets,
                      business or money of Party B in the

                                                                              13

<PAGE>

                      capacity referred to in paragraph 11(b)(i) only; and

               (iii)  without limiting the foregoing, Section 5(a)(vii) will
                      only apply to Party B in its capacity as trustee of the
                      relevant Series Trust and:

                      (A)  reference in Section 5(a)(vii)(1) to Party B being
                           dissolved is to the relevant Series Trust being
                           dissolved;

                      (B)  Party B in its capacity as trustee of the relevant
                           Series Trust is not insolvent or unable to pay its
                           debts for the purposes of Section 5(a)(vii)(2) to the
                           extent that its obligation to make any payment is
                           limited by any provision in a Transaction Document in
                           relation to the Series Trust; and

                      (C)  the appointment of a Substitute Trustee in relation
                           to the Series Trust in accordance with the Master
                           Trust Deed is not, of itself, an event to which
                           Section 5(a)(vii) applies in relation to Party B.

       (c)     Definitions: in Section 14:

               (i)    replace the definitions of "Affected Transactions" and
                      "Local Business Day" with the following:

                      ""Affected Transactions" means, with respect to a
                      Termination Event, all Transactions."; and

                      ""Local Business Day" has the same meaning as "Business
                      Day"." ; and

               (ii)   insert the following new definitions:

                      ""BBSW" or "AUD-BBR-BBSW" in relation to a Calculation
                      Period means the rate appearing at approximately 10.00 am
                      Sydney time on the Reset Date for that Calculation Period
                      on the Reuters Screen page "BBSW" as being the average of
                      the mean buying and selling rates appearing on that page
                      for a bill of exchange having a tenor of three months .
                      If:

                      (a)  on that Reset Date fewer than 4 banks are quoted on
                           the Reuters Screen page "BBSW"; or

                      (b)  for any other reason the rate for that day cannot be
                           determined in accordance with the foregoing
                           procedures,

                      then "BBSW" or "AUD-BBR-BBSW" means such rate as is
                      specified by the Calculation Agent having regard to
                      comparable indices then available.

                      "Credit Support Annex" means the Credit Support Annex
                      annexed to this Agreement.

                      "Distribution Date" has the meaning given in Section 16.

                      "Inconvertibility Event" means any event beyond the
                      control of CBA that makes it impossible for CBA to convert
                      to U.S. Dollars through customary legal channels an amount
                      of Australian Dollars sufficient to fulfil CBA's
                      obligations under this Agreement and each Transaction.

                                                                              14

<PAGE>

          "Joint Ratings" means the highest possible jointly supported short
          term credit rating or long term credit rating, as applicable, that
          can be determined in relation to Party A and the Standby Swap
          Provider by Moody's, S&P and Fitch in accordance with Moody's, S&P's
          and Fitch's respective approaches to jointly supported obligations
          provided that if either Party A or the Standby Swap Provider has a
          long term credit rating of less than BBB from S&P the Joint Ratings
          from S&P will be the credit ratings of the other party.

          "Master Trust Deed" means the Master Trust Deed dated 8 October 1997
          between Party B and the Manager, as amended from time to time.

          "Novation Date" means the date upon which the obligations of Deutsche
          Bank as Party A under this Agreement and each Transaction are novated
          to the Standby Swap Provider pursuant to Part 5(23)(c) of the
          Schedule.

          "Prescribed Rating Period" means in relation to the Joint Ratings
          determined by the Rating Agencies:

         (a)  a period of 30 Business Days from the date of determination of
              the relevant credit rating where any Joint Rating immediately
              after that determination is less than the relevant Prescribed
              Rating but greater than or equal to a short term credit rating
              of A-1 by S&P or a long term credit rating of A- by S&P, a long
              term credit rating of A3 by Moody's or a short term credit rating
              of P-2 by Moody's, and a long term credit rating of A- by Fitch;
              and

         (b)  a period of 5 Business Days from the date of determination of the
              relevant credit rating where any Joint Rating immediately after
              that determination is less than a short term credit rating of A-1
              by S&P and P-2 by Moody's or less than a long term credit rating
              of A- by S&P, A3 by Moody's and A- by Fitch.

          "Prescribed Ratings" means a short term credit rating of A-1+ by S&P
          or a long term credit rating of AA- by S&P, a long term credit rating
          of AA- by Fitch, and a long term credit rating of A2 by Moody's or a
          short term credit rating of P-1 by Moody's.

          "Relevant Calculation Amount" has the meaning given in Section 16.

          "Relevant Notes" has the meaning given in Section 16.

          "Relevant Note Trustee" has the meaning given in Section 16.

          "Relevant Noteholders" has the meaning given in Section 16.

          "Scheduled Maturity Date" has the meaning given in Section 16.

          "Security Trust Deed" has the meaning given in Section 16.

          "Series Supplement" has the meaning given in Section 16.

          "Series Trust" has the meaning given in Section 16.".

          "Side Agreement" means the Side Agreement dated on or about the date
          of this Agreement between CBA and Deutsche Bank, as amended from time
          to time.

                                                                              15

<PAGE>

(d)  Interpretation:

     (i)  references to time are references to Sydney time;
     (ii) a reference to "wilful default" in relation to Party B means, subject
          to Part 5(11)(d)(iii) of this Schedule, any wilful failure by Party B
          to comply with, or wilful breach by Party B of, any of its
          obligations under any Transaction Document, other than a failure or
          breach which:

          A.  (1)  arises as a result of a breach of a Transaction Document by
                   a person other than:

                   (a)  Party B; or

                   (b)  any other person referred to in Part  5(11)(d)(iii) of
                        this Schedule; and
              (2)  the performance of the action (the non- performance of which
                   gave rise to such breach) is a precondition to Party B
                   performing the said obligation;

          B.  is in accordance with a lawful court order or direction or
              required by law; or

          C.  is in accordance with any proper instruction or direction of the
              Investors given at a meeting convened under the Master Trust
              Deed;

     (iii)a reference to the "fraud", "negligence" or "wilful default" of Party
          B means the fraud, negligence or wilful default of Party B and of its
          officers, employees, agents and any other person where Party B is
          liable for the acts or omissions of such other person under the terms
          of any Transaction Document;

     (iv) a reference to "neither party" will be construed as a reference to
          "no party"; and

     (v)  a reference to "other party" will be construed as a reference to
          "other parties".

(e)  ISDA Definitions:  The 2000 ISDA Definitions (as published by the
     International Swaps and Derivatives Association, Inc ("ISDA"))
     (as published by ISDA) (the "2000 ISDA Definitions") as at the date of
     this Agreement are incorporated into this Agreement and each Confirmation.

(f)  Inconsistency: Subject to Part 5(11)(a), unless specified otherwise, in
     the event of any inconsistency between any two or more of the following
     documents in respect of a Transaction they will take precedence over each
     other in the following order in respect of that Transaction:

     (i)  any Confirmation;

     (ii) this Schedule and Section 13 ("Elections and Variables") of the
          Credit Support Annex (as applicable);

     (iii)the 2000 ISDA Definitions; and

     (iv) the printed form of the 1992 ISDA Master Agreement and the printed

                                                                              16

<PAGE>

                    form of the ISDA Credit Support Annex which form part of
                    this Agreement.

     (g)    Swap Transaction: Any reference to a:

            (i)     "Swap Transaction" in the 2000 ISDA Definitions is deemed
                    to be a reference to a "Transaction" for the purpose of
                    interpreting this Agreement or any Confirmation; and

            (ii)    "Transaction" in this Agreement or any Confirmation is
                    deemed to be a reference to a "Swap Transaction" for the
                    purpose of interpreting the 2000 ISDA Definitions.

     (h)    Incorporated Definitions and other Transaction Documents and
            provisions: Where in this Agreement a word or expression is defined
            by reference to its meaning in another Transaction Document or
            there is a reference to another Transaction Document or to a
            provision of another Transaction Document, any amendment to the
            meaning of that word or expression or to that other Transaction
            Document or provision (as the case may be) will be of no effect for
            the purposes of this Agreement unless and until the amendment is
            consented to by the parties to this Agreement.

(12) Limitation of Liability: Insert the following as Sections 15 and 16, after
     Section 14:

     "15. Party B's Limitation of Liability

            (a)     (Limitation on Party B's liability):  Party B enters into
                    this Agreement only in its capacity as trustee of the
                    relevant Series Trust and in no other capacity. A liability
                    incurred by Party B acting in its capacity as trustee of
                    the relevant Series Trust arising under or in connection
                    with this Agreement is limited to and can be enforced
                    against Party B only to the extent to which it can be
                    satisfied out of the Assets of that Series Trust out of
                    which Party B is actually indemnified for the liability.
                    This limitation of Party B's liability applies despite any
                    other provision of this Agreement (other than Section
                    15(c)) and extends to all liabilities and obligations of
                    Party B in any way connected with any representation,
                    warranty, conduct, omission, agreement or transaction
                    related to this Agreement.

            (b)     (Claims against Party B):  The parties other than Party B
                    may not sue Party B in respect of liabilities incurred by
                    Party B acting in its capacity as trustee of a Series Trust
                    in any other capacity other than as trustee of that Series
                    Trust, including seeking the appointment of a receiver
                    (except in relation to Assets of that Series Trust), or a
                    liquidator, or an administrator, or any similar person to
                    Party B or prove in any liquidation, administration or
                    similar arrangements of or affecting Party B (except in
                    relation to the Assets of that Series Trust).

            (c)     (Breach of trust):  The provisions of this Section 15 will
                    not apply to any obligation or liability of Party B to the
                    extent that it is not satisfied because under the Master
                    Trust Deed, the corresponding Series Supplement or any
                    other corresponding Transaction Document or by operation of
                    law there is a reduction in the extent of Party B's
                    indemnification out of the Assets of the relevant Series
                    Trust, as a result of Party B's fraud, negligence or wilful
                    default.

            (d)     (Acts or omissions):  It is acknowledged that the Relevant
                    Parties are responsible under the corresponding Transaction
                    Documents for

                                                                              17

<PAGE>

                    performing a variety of obligations relating to the
                    relevant Series Trust.  No act or omission of Party B
                    (including any related failure to satisfy its obligations
                    or any breach of representation or warranty under this
                    Agreement) will be considered fraudulent, negligent or a
                    wilful default of Party B for the purpose of paragraph (c)
                    of this Section 15 to the extent to which the act or
                    omission was caused or contributed to by any failure by any
                    such Relevant Person or any other person appointed by Party
                    B under such a Transaction Document (other than a person
                    whose acts or omissions Party B is liable for in accordance
                    with any such Transaction Document) to fulfil its
                    obligations relating to the relevant Series Trust or by any
                    other act or omission of the Manager or the Servicer or any
                    other such person.

            (e)     (No obligation): Party B is not obliged to enter into any
                    commitment or obligation under this Agreement or any
                    Transaction Document (including incur any further
                    liability) unless Party B's liability is limited in a
                    manner which is consistent with this Section 15 or
                    otherwise  in a manner satisfactory to Party B in its
                    absolute discretion.

     16.    Segregation

            Party B will enter into each Transaction as trustee of a Series
            Trust.  Each Confirmation in relation to a Transaction must
            specify the name of the Series Trust to which the Transaction
            relates.  Notwithstanding anything else in this Agreement, but
            without limiting the generality of Section 15, the provisions of
            this Agreement (including, without limitation, the Credit Support
            Annex) shall have effect severally in respect of each Series Trust
            and shall be enforceable by or against Party B in its capacity as
            trustee of the relevant Series Trust as though a separate
            Agreement applied between Party A, Party B (in its capacity as
            trustee of the Series Trust specified in the relevant
            Confirmation), the Manager and the Standby Swap Provider for each
            of Party B's said several capacities, to the intent that (inter
            alia):

            (a)     (References to Party B): unless the context indicates a
                    contrary intention, each reference to "Party B" in this
                    Agreement shall be construed as a several reference to
                    Party B in its respective capacities as trustee of each
                    Series Trust;

            (b)     (Separate Agreements): this Master Agreement including,
                    without limitation, this Schedule and the Credit Support
                    Annex together with each Confirmation relating to a
                    particular Series Trust will form a single separate
                    agreement between Party A, the Manager, the Standby Swap
                    Provider and Party B in its capacity as trustee of that
                    Series Trust and references to the respective obligations
                    (including references to payment obligations generally and
                    in the context of provisions for the netting of payments
                    and the calculation of amounts due on early termination) of
                    Party A, the Manager, the Standby Swap Provider or Party B
                    shall be construed accordingly as a several reference to
                    each mutual set of obligations arising under each such
                    separate agreement between Party A, the Manager, the
                    Standby Swap Provider and Party B in its several capacity
                    as trustee of the relevant Series Trust;

            (c)     (Representations): representations made and agreements
                    entered by the parties under this Agreement are made and
                    entered severally by Party B in its respective capacities
                    as trustee of each Series Trust and in respect of the
                    relevant Series Trust and may be enforced by Party B
                    against Party A, the Manager or the Standby Swap Provider
                    severally in Party B's said several capacities (and by
                    Party A, the Manager or the Standby Swap Provider against
                    Party B in Party B's said several capacities);

                                                                              18

<PAGE>

            (d)     (Termination): rights of termination, and obligations and
                    entitlements consequent upon termination, only accrue to
                    Party A against Party B severally in Party B's respective
                    capacities as trustee of each Series Trust, and only accrue
                    to Party B against Party A severally in Party B's said
                    several capacities;

            (e)     (Events of Default and Termination Events): without
                    limiting Section 15, the occurrence of an Event of Default
                    or Termination Event in respect of one Series Trust shall
                    not in itself constitute an Event of Default or Termination
                    Event in respect of any other Series Trust; and

            (f)     (Definitions):

                    (i)     the term "Series Trust":

                            (A)     in this Section 16, means each Series Trust
                                    (as defined in the Master Trust Deed)
                                    specified or to be specified, as the
                                    context requires, as the relevant Series
                                    Trust in the Confirmation for a
                                    Transaction; and

                            (B)     elsewhere in this Agreement, means each
                                    such Series Trust severally in accordance
                                    with the preceding provisions of this
                                    Section 16;

                    (ii)    the term "Transaction":

                            (A)     in this Section 16, means each Transaction
                                    governed by this Agreement; and

                            (B)     elsewhere in this Agreement, means each
                                    such Transaction entered into by the
                                    trustee as Trustee of the relevant Series
                                    Trust;

                    (iii)   the term "Agreement":

                            (A)     in this Section 16, and elsewhere if so
                                    specified, means this Master Agreement,
                                    including, without limitation, this
                                    Schedule and the Credit Support Annex,
                                    and all Confirmations governed by this
                                    Master Agreement; and

                            (B)     elsewhere, unless specified otherwise,
                                    means the separate agreement referred to in
                                    Section 16(b) in respect of each particular
                                    Series Trust;

                    (iv)    the terms "Distribution Date", "Relevant
                            Calculation Amount", "Relevant Note Trustee",
                            "Relevant Notes","Relevant Noteholders", "Scheduled
                            Maturity Date", "Security Trust Deed" and "Series
                            Supplement" in this Agreement to the extent that it
                            applies in relation to a Series Trust have the
                            respective meanings given to them in the
                            Confirmations for the Transactions of that Series
                            Trust.".

(13) Further Assurances: Each party will, upon request by the other party (the
     "requesting party") at the expense of the requesting party, perform all
     such acts and execute all such agreements, assurances and other documents
     and instruments as the requesting party reasonably requires (and, in the
     case of Party B, are within the powers granted to Party B under the Master
     Trust Deed) to assure and confirm the rights and powers afforded, created
     or

                                                                              19

<PAGE>

     intended to be afforded or created, under or in relation to this
     Agreement and each Transaction or other dealing which occurs under or is
     contemplated by it.

(14) Procedures for Entering into Transactions

     (a)    With respect to each Transaction entered into pursuant to this
            Agreement and for the purposes of Section 9(e)(ii), Party A will,
            by or promptly after the relevant Trade Date, send Party B, the
            Standby Swap Provider and the Manager a Confirmation substantially
            in the form set out in Annexure 1 (or in such other form as may be
            agreed between Party A, Party B, the Standby Swap Provider and the
            Manager), and Party B, the Standby Swap Provider and the Manager
            must promptly then confirm the accuracy of and sign and return, or
            request the correction of, such Confirmation; and

     (b)    Party B will enter into each Transaction in its capacity as trustee
            of the Series Trust.

(15) Authorised Officer:  Each party will be entitled to assume, in the absence
     of any knowledge to the contrary, that any Confirmation, notice or other
     written communication, which is issued in respect of this Agreement and
     which is purported to be signed on behalf of another party by a person
     specified in the certificate provided by that other party under Part 3(b)
     of this Schedule, is authorised by that other party.

(16) Recorded Conversations:  Each party:

     (a)    consents to the electronic recording of its telephone conversations
            with another party (or any of its associated persons) with or
            without the use of an automatic tone warning device;

     (b)    will provide transcripts of such recordings (if any) upon
            reasonable request by the other party (at the reasonable cost of
            the party requesting);

     (c)    acknowledges that such recordings and transcripts can be used as
            evidence by either party in any dispute between them; and

     (d)    acknowledges that no party  is obligated to maintain copies of such
            recordings and transcripts for the benefit of the other party.

(17) Replacement Currency Swap Agreement:

     (a)    If any Transaction under this Agreement is terminated prior to the
            day upon which the Relevant Notes are redeemed in full, Party B
            may,at the direction of the Manager, enter into one or more
            currency swaps which replace that Transaction (collectively a
            "Replacement Currency Swap") provided that:

            (i)     the Rating Agencies confirm in writing that the entry into
                    the Replacement Currency Swap by Party B does not result in
                    a reduction, qualification or withdrawal of the credit
                    ratings then assigned by them to the Relevant Notes; and

            (ii)    the liability of Party B under the Replacement Currency
                    Swap is limited to at least the same extent that its
                    liability is limited under that Transaction.

     (b)    If Party B enters into a Replacement Currency Swap pursuant to
            paragraph (a) and a Settlement Amount is payable by Party B to
            Party A upon termination of the Transaction referred to in Part 5
            (17)(a) of this Schedule, Party B must, on the direction of the
            Manager, pay any upfront premium to enter into the Replacement
            Currency Swap received by Party B from the Replacement Currency
            Swap provider to Party A in satisfaction of and to the extent of
            Party B's obligation to pay the

                                                                              20

<PAGE>

            Settlement Amount to Party A, and to the extent such premium is not
            greater than or equal to the Settlement Amount, the balance may be
            satisfied by Party B as an Expense.

     (c)    If Party B enters into a Replacement Currency Swap pursuant to
            paragraph (a) and a Settlement Amount is payable by Party A to
            Party B upon termination of the Transaction referred to in Part 5
            (17)(a) of this Schedule, Party B may direct Party A to pay that
            amount to the Replacement Currency Swap provider in satisfaction of
            or towards and to the extent of Party B's obligation (if any) to
            pay an upfront premium to the Replacement Currency Swap provider to
            enter into the Replacement Currency Swap.

     (d)    The obligations of Party B (and the rights of Party A) under this
            Part 5(17) will survive the termination of this Agreement.

(18) Knowledge or Awareness:  Subject to Section 12(a), each party will only be
     considered to have knowledge or awareness of, or notice of, a thing or
     grounds to believe anything by virtue of the officers of that party or any
     Related Body Corporate of that party which have the day to day
     responsibility for the administration or management of that party's (or a
     Related Body Corporate of that party's) obligations in relation to the
     Series Trust or the Transactions entered into under this Agreement having
     actual knowledge, actual awareness or actual notice of that thing, or
     grounds or reason to believe that thing (and similar references will be
     interpreted in this way).

(19) Restrictions on Party B's Rights:  Party B must at all times act in
     accordance with the instructions of the Manager in relation to this
     Agreement.

(20) Amendment to this Agreement: The parties to this Agreement may only amend
     this Agreement in accordance with clause 33.1(b) of the Series Supplement.

(21) Appointment of Manager: Party B hereby exclusively appoints the Manager as
     its attorney to act on Party B's behalf and exercise all rights and powers
     of Party B with respect to this Agreement.  Without limiting the
     generality of the foregoing, the Manager may issue and receive on behalf
     of Party B all notices, certificates and other communications to or by
     Party A under this Agreement until such time as Party B serves written
     notice on Party A of the revocation of the Manager's authority to act on
     behalf of Party B in accordance with this Part 5(21).

(22) Ratings Downgrade:

     (a)    (Downgrade): If, as a result of the reduction or withdrawal of the
            credit rating of Party A or the Standby Swap Provider a Joint
            Rating is less than the relevant Prescribed Rating, Party A must by
            the expiry of the Prescribed Rating Period in relation to the
            credit ratings assigned by the Rating Agencies to Party A and the
            Standby Swap Provider at that time (or such greater period as is
            agreed to in writing by each relevant Rating Agency), at its cost
            alone and at its election:

            (i)     provided that the short term Joint Rating by S&P is greater
                    than or equal to A-1 or the long term Joint Rating by S&P
                    is greater than or equal to A- and the long term Joint
                    Rating by Fitch is greater than or equal to A-, lodge
                    collateral in accordance with the Credit Support Annex in
                    an amount equal to the Collateral Amount as defined in Part
                    5(22)(b) of this Schedule; or

            (ii)    enter into, and procure that the Standby Swap Provider
                    enters into, an agreement novating Party A's and/or the
                    Standby Swap Providers' rights and obligations under this
                    Agreement and each Transaction to a replacement
                    counterparty acceptable to the Manager and the Standby

                                                                              21

<PAGE>

                      Swap Provider and which the Rating Agencies confirm in
                      writing will not result in a reduction, qualification or
                      withdrawal of the credit ratings then assigned by them to
                      the Relevant Notes; or

               (iii)  enter into, or procure that the Standby Swap Provider
                      enters into, such other arrangements in respect of each
                      Transaction which the Rating Agencies confirm in writing
                      will not result in a reduction, qualification or
                      withdrawal of the credit ratings then assigned by them to
                      the Relevant Notes.

               Notwithstanding that Party A has elected to satisfy its
               obligations pursuant to this Part 5(22)(a) in a particular
               manner, it may subsequently and from time to time vary the
               manner in which it satisfies its obligations pursuant to this
               Part 5(22)(a) (but will not be entitled to any additional grace
               period in relation to such a variation).

       (b)     (Collateral Amount): For the purpose of this Part 5(22) the
               Collateral Amount will be an amount equal to the greater of the
               following:

               (i)    zero;

               (ii)   if the Joint Rating is below the Prescribed Rating in
                      relation to S&P, CCR;

               (iii)  if the Joint Rating is below the Prescribed Rating in
                      relation to Moody's, an amount acceptable to Moody's and
                      sufficient to maintain the credit rating assigned to the
                      Relevant Notes by Moody's immediately prior to the review
                      of the Joint Rating by Moody's; and

               (iv)   if the Joint Rating is below the Prescribed Rating in
                      relation to Fitch, an amount acceptable to Fitch and
                      sufficient to maintain the credit rating assigned to the
                      Relevant Notes by Fitch immediately prior to the review
                      of the Joint Rating by Fitch.

               Where:

               CCR = CR x 1.030

               CR = MTM + VB

               MTM means the aggregate mark-to-market value (whether positive
               or negative) of each Transaction determined in accordance with
               Part 5(22)(c) of this Schedule no earlier than 3 Business Days
               prior to the date that the Collateral Amount is lodged.

               VB means the volatility buffer, being the value calculated by
               multiplying the Relevant Calculation Amount as at the most
               recent Distribution Date by the relevant percentage obtained
               from the following table:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Party A's and the         Where the period         Where the period           Where the period
Standby Swap              between the date of      between the date of        between the date of
Provider's jointly        recalculation and the    recalculation and the      recalculation and the
supported long term       Scheduled Maturity       Scheduled Maturity         Scheduled Maturity
credit rating by S&P      Date is less than or     Date is greater than 5     Date is greater than 10
                          equal to 5 years         years and less than or     years
                                                   equal to 10 years
<S>                       <C>                      <C>                        <C>
------------------------------------------------------------------------------------------------------
A+                        1.05                     1.75                       3.0
------------------------------------------------------------------------------------------------------
A                         1.35                     2.45                       4.5
------------------------------------------------------------------------------------------------------
A-                        1.5                      3.15                       6
------------------------------------------------------------------------------------------------------
</TABLE>

       (c)     (Mark to Market Value): If collateral has been lodged or is to be
               lodged under Part 5(22)(a)(i) of this Schedule and Part
               5(22)(b)(ii) of this Schedule applies, Party A must calculate the
               mark-to-market value of each Transaction by obtaining 2 bids

                                                                              22

<PAGE>

               from counterparties with the Prescribed Ratings willing to
               provide each Transaction in the absence of Party A. The
               mark-to-market value may be a positive or a negative amount.
               A bid has a negative value if the payment to be made is from the
               counterparty to Party A and has a positive value if the payment
               to be made is from Party A to the counterparty. The
               mark-to-market value is the higher of the bids (on the basis
               that any bid of a positive value is higher than any bid of a
               negative value).

       (d)     (Recalculation): If collateral has been lodged under Part
               5(22)(a)(i) of this Schedule then, unless collateral is no
               longer required to be lodged in accordance with Part 5(22)(a)
               of this Schedule, Party A must recalculate the Collateral Amount
               (including, if Part 5(22)(b)(ii) of this Schedule applies the
               CCR and the mark-to-market value) on each Valuation Date. If:

               (i)    the Value on such Valuation Date of all Posted Credit
                      Support held by the Secured Party is less than the
                      recalculated Collateral Amount, the difference is the
                      Delivery Amount in relation to that Valuation Date; or

               (ii)   the Value on such Valuation Date of all Posted Credit
                      Support held by the Secured Party is greater than the
                      recalculated Collateral Amount, the difference is the
                      Return Amount in relation to that Valuation Date.

       (e)     (Definitions): For the purposes of this Part 5(22) "Delivery
               Amount", "Posted Credit Support", "Return Amount", "Secured
               Party", "Value" and "Valuation Date" have the same meaning as in
               the Credit Support Annex.

(23)   Standby Swap Provider:

       (a)     (Commitment): Notwithstanding any other provision in this
               Agreement to the contrary, if Deutsche Bank as Party A fails to:

               (i)    make, when due, any payment required to be made by it to
                      Party B under a Transaction; or

               (ii)   comply with any obligation under Part 5(22) of this
                      Schedule within the required period,

               then:

               (iii)  as soon as practicable following such failure but, in
                      relation to a failure to pay under a Transaction, in any
                      event no later than 12.00 noon (New York time) on the due
                      date for such payment or, in relation to a failure to
                      comply with an obligation under Part 5(22) of this
                      Schedule, no later than the Business Day following the
                      due date for compliance with such obligation, Party B
                      must notify Deutsche Bank as Party A and the Standby Swap
                      Provider in writing of such failure and:

                      (A)    the amount of the defaulted payment and the basis
                             of calculation of the defaulted payment; or

                      (B)    details of the failure to comply with the
                          obligation under Part 5(22) of this Schedule, as the
                          case may be; and

               (iv)   as soon as reasonably practicable after its receipt of
                      such notice (and in any event, in relation to a failure
                      to pay under a Transaction, no later than 2.30 pm (New
                      York time) on the due date for such payment, and,
                      in relation to a failure to comply with an obligation
                      under Part 5(22) of this Schedule, no later than 3
                      Business Days after the failure to comply with

                                                                              23

<PAGE>

                      such obligation, provided, in each case, that notice has
                      been given by Party B by the required times in accordance
                      with Part 5(23)(a)(iii) of this Schedule) the Standby
                      Swap Provider must:

                      (A)    in relation to a failure to pay under a
                             Transaction, pay to Party B the amount then owing
                             by Deutsche Bank as Party A to Party B under that
                             Transaction by depositing such amount into the
                             Collections Account in cleared funds; and

                      (B)    in relation to a failure to comply with an
                             obligation under Part 5(22) of this Schedule,
                             satisfy the obligations of Deutsche Bank as
                             Party A under Part 5(22) of this Schedule.

       (b)     (Reimbursement): If on any day the Standby Swap Provider:

               (i)    makes a payment pursuant to Part 5(23)(a)(iv)(A) of this
                      Schedule, Deutsche Bank as Party A must by 2.00 pm (New
                      York time) on the next following Business Day (or such
                      other time as the Standby Swap Provider may agree in
                      writing) pay to the Standby Swap Provider an amount equal
                      to that payment by depositing such amount into the
                      account which the Standby Swap Provider nominates for
                      this purpose in cleared funds; or

               (ii)   satisfies the obligations of Deutsche Bank as Party A
                      pursuant to Part 5(23)(a)(iv)(B) of this Schedule,
                      Deutsche Bank as Party A must:

                      (A)    within 3 Business Days, fulfill its obligations
                             under Part 5(22) of this Schedule such that any
                             collateral lodged by the Standby Swap Provider
                             pursuant to Part 5(22)(a)(i) of this Schedule or
                             any other arrangement made by the Standby Swap
                             Provider pursuant to Part 5(22)(a)(iii) of this
                             Schedule is returned to the Standby Swap Provider
                             or will cease (but Deutsche Bank as Party A will
                             have no obligations to the Standby Swap Provider
                             under this Part 5(23)(b)(ii)(A) in relation to any
                             novation pursuant to Part 5(22)(a)(ii) of this
                             Schedule);

                      (B)    upon demand by the Standby Swap Provider,
                             indemnify the Standby Swap Provider from and
                             against any cost or liability (including, without
                             limitation, funding costs) incurred by the Standby
                             Swap Provider in satisfying those obligations.

       (c)     (Novation): If:

               (i)    Deutsche Bank as Party A defaults in its payment
                      obligations under Part 5(23)(b)(i) or (b)(ii)(B) of this
                      Schedule for reasons other than solely a technical,
                      computer or similar error outside the control of Party A
                      and such default is not remedied on or before one
                      Business Day after such failure; or

               (ii)   Deutsche Bank as Party A fails to fulfill its obligations
                      under Part 5(23)(b)(ii)(A) of this Schedule,

               then:

               (iv)   Deutsche Bank's rights, powers, privileges and
                      obligations as Party A under this Agreement and each
                      Transaction terminate other than its rights, powers,
                      privileges and obligations pursuant to Part 5(23)(d) of
                      this Schedule and Paragraph 13(m)(vii) of the Credit
                      Support Annex;

                                                                              24

<PAGE>

               (v)    subject to Part 5(23)(c)(vii) of this Schedule, Deutsche
                      Bank will be taken to have transferred its rights powers
                      and privileges as Party A under this Agreement and each
                      Transaction to the Standby Swap Provider and the Standby
                      Swap Provider will be taken to have assumed obligations
                      equivalent to those that Deutsche Bank as Party A had
                      under this Agreement and each Transaction;

               (vi)   Party B and the Standby Swap Provider will be taken to
                      have released Deutsche Bank as Party A from all its
                      unperformed and future obligations under this Agreement
                      and each Transaction other than its present and future
                      obligations pursuant to Part 5(23)(d) of this Schedule;

               (vii)  this Agreement and the Confirmation relating to each
                      Transaction shall be construed as if the Standby Swap
                      Provider was a party to it in place of Party A except
                      that:

                      (A)    references to "Deutsche Bank as Party A" will not
                             apply to the Standby Swap Provider as Party A;

                      (B)    references to any jointly supported credit rating
                             of Party A and the Standby Swap Provider will be
                             deemed to be references to the relevant credit
                             rating of the Standby Swap Provider;

                      (C)    without limiting Part 5(23)(c)(vii)(A) of this
                             Schedule, this Part 5(23) and Paragraph 13(m)(vii)
                             of the Credit Support Annex will not apply to the
                             Standby Swap Provider as Party A;

                      (D)    the Standby Swap Provider must (if it has not
                             already done so) satisfy the obligations of
                             Party A under Part 5(22)(a) of this Schedule
                             within 10 Business Days of the Novation Date on
                             the basis that any collateral lodged by Deutsche
                             Bank as Party A (or on behalf of Deutsche Bank as
                             Party A under Part 5(23)(a)(iv)(B) of this
                             Schedule or clause 2 of the Side Agreement) or any
                             other arrangements made by Deutsche Bank as
                             Party A pursuant to Part 5(22)(a)(iii) of this
                             Schedule will be returned to Deutsche Bank as
                             Party A (or the Standby Swap Provider, as
                             applicable) or will cease (but such collateral
                             will only be returned and such arrangements will
                             only cease upon compliance by the Standby Swap
                             Provider with its obligations under this Part
                             5(23)(c)(vii)(D) and otherwise, where applicable,
                             in accordance with Paragraph 13(m)(vii) of the
                             Credit Support Annex, the Side Agreement or the
                             terms of such arrangements).

       (d)     (Termination Payment): Following novation under Part 5(23)(c) of
               this Schedule Deutsche Bank as Party A must pay the Standby Swap
               Provider or the Standby Swap Provider must pay Deutsche Bank as
               Party A an amount (the "Novation Settlement Amount") being:

               (i)    in the case of payment by Deutsche Bank as Party A to the
                      Standby Swap Provider, an amount equal to the amount
                      (if any) that would be payable by Party A to Party B; and

               (ii)   in the case of payment by the Standby Swap Provider to
                      Deutsche Bank as Party A, an amount equal to the amount
                      (if any) that would be payable

                                                                              25

<PAGE>

               by Party B to Party A,

          if each Transaction had been terminated, calculated and payable in
          accordance with Sections 6(d) and (e) on the basis that:

          (i)     the Novation Date is the Early Termination Date and the
                  Novation Settlement Amount is due and payable on the day that
                  notice of the amount payable is effective;

          (ii)    the Early Termination Date has resulted from an Event of
                  Default in respect of which Party A is the Defaulting Party;

          (iii)   all calculations and determinations which would have been
                  done by Party B are done by the Standby Swap Provider and all
                  calculations and determinations that would have been done by
                  Party A are done by Deutsche Bank;

          (iv)    a reference to Unpaid Amounts owing to Party B is a reference
                  to such amounts payable by Party A to the Standby Swap
                  Provider pursuant to Part 5(23)(b) and (e) of this Schedule
                  and there are no Unpaid Amounts owing to Party A;

          (v)     without limiting the foregoing, for the purposes of the
                  definition of "Market Quotation" in Section 14 each Reference
                  Market-maker would be required, upon entering into a
                  Replacement Transaction, to fulfill the obligations of Party
                  A under Part 5(22)(a) of this Schedule and to comply with
                  Section 2(d) as amended by Part (5)(1)(f) and (g) of this
                  Schedule; and

          (vi)    the Termination Currency is U.S. Dollars.

     (e)  (Default Interest): If Deutsche Bank as Party A defaults in
          the performance of any payment obligations under Part 5(23)(b) or
          Part 5(23)(d) of this Schedule, it must pay interest (before as well
          as after judgment) on the overdue amount to the Standby Swap Provider
          on demand in the same currency as such overdue amount, for the period
          from (and including) the original due date for payment to (but
          excluding) the date of actual payment, at the Default Rate.  Such
          interest will be calculated on the basis of daily compounding and the
          actual number of days elapsed.

     (f)  (Irrevocable Notice): If the Standby Swap Provider
          satisfies the obligations of Deutsche Bank as Party A under Part
          5(23)(a)(iv)(B) of this Schedule by lodging collateral on behalf of
          Deutsche Bank as Party A pursuant to Part 5(22)(a) of this Schedule,
          Deutsche Bank as Party A must promptly provide an irrevocable notice
          to Party B (copied to the Standby Swap Provider) directing Party B
          that any such collateral, and any Distribution or Interest Amount (as
          those terms are defined in the Credit Support Annex) with respect to
          such collateral, is to be returned or paid to the Standby Swap
          Provider and not to Deutsche Bank as Party A.

(24) Inconvertibility: If prior to the Novation Date an Inconvertibility Event
     occurs the Standby Swap Provider's rights, powerprivileges and obligations
     under this Agreement and each Transaction will terminate upon the Standby
     Swap Provider delivering a notice expressed to be given under this
     provision to Party A, Party B and the Manager and Party B will be taken to
     have released the Standby Swap Provider from all its unperformed and
     future obligations under this Agreement and each Transaction.  Following
     the delivery of such a notice in accordance with this Part
     5(24), references to any jointly supported credit rating of Party A and
     the Standby Swap Provider will be deemed to references to the relevant
     credit rating of Party A.

                                                                              26

<PAGE>

(25) No Amendment: Each of Party B and the Manager agrees that it will not
     consent to any amendment to any provision in any Transaction Document in
     relation to the Series Trust dealing with the ranking, priority or
     entitlement of Party A in respect of any security or moneys relating to
     the Series Trust without the prior written consent of Party A and the
     Standby Swap Provider.

                                                                              27

<PAGE>

Annexure 1
                      FORM OF CONFIRMATION [NAME OF SERIES TRUST]

                                 [Letterhead of Party A]

[DATE]

<TABLE>
<S>  <C>                                    <C>
To:  Perpetual Trustee Company Limited      Securitisation Advisory Services Pty. Limited
     as trustee of the Series Trust         Level 6
     Level 7                                48 Martin Place
     9 Castlereagh Street                   Sydney  NSW  2000
     Sydney  NSW 2000                       AUSTRALIA
     AUSTRALIA

     Attention:  Manager, Securitisation    Attention: Manager, Securitisation
                Services

     Commonwealth Bank of Australia
     Level 1
     48 Martin Place
     Sydney  NSW  2000
     AUSTRALIA

     Attention:   Manager, Securitisation
</TABLE>

CONFIRMATION - [NAME OF TRANSACTION]

The purpose of this letter is to confirm the terms and conditions of the
Transaction entered into between us on the terms specified below (the
"Transaction").  This letter constitutes a "Confirmation" as referred to in the
Master Agreement specified below.

This Confirmation is entered into by Perpetual Trustee Company Limited, ABN 42
000 001 007 as trustee of the Series [    ] Medallion Trust (the "Series
Trust").

This Confirmation supplements, forms part of, and is subject to, the 1992 ISDA
Master Agreement dated as of [    ], as amended, novated or supplemented from
time to time (the "Agreement"), between Deutsche Bank AG, New York Branch
("Party A"), Perpetual Trustee Company Limited, ABN 42 000 001 007 as trustee
of, inter alia, the Series Trust ("Party B"), Securitisation Advisory Services
Pty.  Limited, ABN 88 064 133 946 (the "Manager") and Commonwealth Bank of
Australia, ABN 48 123 123 124 (the "Standby Swap Provider").  All provisions
contained in the Agreement govern this Confirmation except as expressly
modified below.

This Confirmation incorporates the attached Definitions Schedule which forms
part of, and is subject to, this Confirmation.

The terms of the particular Transaction to which this Confirmation relates are
specified below:

1.     Our Reference:             [            ]

2.     Trade Date:                [            ]

3.     Effective Date:            Issue Date in respect of the Relevant Notes

4.     Termination Date:          The earlier of:

                                  (a)     the date that the Relevant Notes have
                                          been redeemed in full in accordance
                                          with the Note

                                                                              28

<PAGE>

                                                Conditions; and

                                        (b)     the Scheduled Maturity Date.
5.1     Floating Amounts

5.1     Floating Amounts Payable by
        Party A (subject to Paragraph
        9 of this Confirmation):

(a)     Floating Rate Payer:            Party A

        Calculation Amount:             For each Floating Rate Payer Payment
                                        Date, one half of the aggregate Invested
                                        Amount of the Relevant Notes as at the
                                        first day of the Calculation Period
                                        ending on but excluding that Floating
                                        Rate Payer Payment Date. The Calculation
                                        Amount for the initial Calculation
                                        Period will be USD500,000,000. The
                                        Calculation Amount will not ever exceed
                                        USD500,000,000 for any Calculation
                                        Period.

        Floating Rate Payer Payment
         Dates:                         Each Distribution Date during the period
                                        commencing on and including [      ] and
                                        ending on and including the Termination
                                        Date, subject to adjustment in
                                        accordance with the Following Business
                                        Day Convention

        Floating Rate Option:           USD-LIBOR-BBA except that:

                                        (a)     references to "London Banking
                                        Days" in section 7.1(a)(w)(xvii) and
                                        (xx) of the Annex (June 2000 version) to
                                        the 2000 ISDA Definitions will be
                                        replaced with references to "Banking
                                        Days" as that expression is defined in
                                        the Note Conditions:

                                        (b)     references to "Telerate Page
                                        3750" in section 7.1(w)(xvii) of the
                                        Annex (June 2000 version) to the 2000
                                        ISDA Definitions will be replaced with
                                        references to "Rate Page" as that
                                        expression is defined in the Note
                                        Conditions; and

                                        (c)     if USD-LIBOR-BBA cannot be
                                        determined in accordance with the 2000
                                        ISDA Definitions as varied above
                                        (including endeavouring to determine a
                                        rate under the definition of
                                        "USD-LIBOR-Reference banks" in section
                                        7.1(w)(xx)), it will remain as the most
                                        recently determined rate obtained from a
                                        Rate Page for a preceding Calculation
                                        Period.

        Designated Maturity:            [    ] months (except that Linear
                                        Interpolation using [     ] and [      ]
                                        months will apply in respect of the
                                        first Calculation Period)

        Spread:                         In respect of:

                                        (a) Floating Rate Payer Payment Dates on
                                            or prior to [     ] (or if that day
                                            is not a Business Day, the next
                                            following Business Day), [     ];and

                                        (b) Floating Rate Payer Payment Dates
                                            after

                                                                              29

<PAGE>

                                                  [     ] (or if that day is
                                                  not a Business Day, the next
                                                  following Business Day), [ ].

     Floating Rate Day Count Fraction:        Actual/360

     Reset Dates:                             The first day of each Calculation
                                              Period

     Compounding:                             Inapplicable

(b)  Class A-1 Unpaid Coupon Amount           If on any Distribution Date there
                                              is an A$ Class A-1 Unpaid
                                              Interest Amount, then on the
                                              Floating Rate Payer Payment Date
                                              which falls on that Distribution
                                              Date, Party A will pay to Party B
                                              an amount calculated as follows:

                                                             LIBOR
                                              $USUC = $AUC * ----- * $US
                                                             BBSW
                                              Exchange Rate

                                              where:

                                              $US UC = the amount to be paid by
                                                       Party A;

                                              $A UC =  the A$ Class A-1 Unpaid
                                                       Interest Payment in
                                                       relation to that
                                                       Distribution Date;

                                              LIBOR =  the Floating Rate Option
                                                       under this paragraph 5.1
                                                       in respect of the Reset
                                                       Date which is the same
                                                       day as that Floating
                                                       Rate Payer Payment Date;

                                              BBSW =   the Floating Rate Option
                                                       under paragraph 5.2 in
                                                       respect of the Reset
                                                       Date which is the  same
                                                       day as that Floating
                                                       Rate Payer Payment Date.

5.2  Floating Amounts Payable by Party
     B (subject to paragraph 9 of this
     Confirmation):

(a)  Floating Rate Payer:                     Party B

     Calculation Amount:                      For each Floating Rate Payer
                                              Payment Date, the A$ Equivalent
                                              of one half of the aggregate
                                              Invested Amount of the Relevant
                                              Notes as at the first day of the
                                              Calculation Period ending on but
                                              excluding that Floating Rate
                                              Payer Payment Date

     Floating Rate Payer Payment Dates:       Each Distribution Date during the
                                              period commencing on and
                                              including [ ] and ending on and
                                              including the Termination Date,
                                              subject to adjustment in
                                              accordance with the Following
                                              Business Day Convention

     Floating Rate Option:                    AUD-BBR-BBSW

     Designated Maturity:                     [     ] months (except that
                                              Linear Interpolation using [    ]
                                              and [     ] months will apply in
                                              respect of the first Calculation
                                              Period)

                                                                              30

<PAGE>

     Spread:                                  In respect of:

                                              (a)    Floating Rate Payer
                                                     Payment Dates on or prior
                                                     to [    ] (or if that day
                                                     is not a Business Day, the
                                                     next following Business
                                                     Day), [    ]; and

                                              (b)    Floating Rate Payer
                                                     Payment Dates after [    ]
                                                     (or if that day is not a
                                                     Business Day, the next
                                                     following Business Day),
                                                     [    ].

     Floating Rate Day Count Fraction:        Actual/365 (Fixed)

     Reset Dates                              The first day of each Calculation
                                              Period

     Compounding:                             Inapplicable

(b)  A$ Class A-1 Unpaid Interest Amount      If on any Distribution Date there
                                              is an A$ Class A-1 Unpaid
                                              Interest Amount, then on the
                                              Floating Rate Payer Payment Date
                                              which falls on that Distribution
                                              Date Party B will pay to Party A
                                              the A$ Class A-1 Unpaid Interest
                                              Payment in relation to that
                                              Distribution Date.

5.3  No Limit to Rights:                      Nothing in paragraphs 5.1(b) or
                                              5.2(b) is to be construed as
                                              limiting Party A's or Party B's
                                              rights in relation to a failure
                                              by the other to pay the full
                                              amount of a Floating Amount
                                              calculated in accordance with
                                              paragraphs 5.1(a) or 5.2(a), as
                                              applicable, on a Floating Rate
                                              Payer Payment Date (including any
                                              right to designate an Early
                                              Termination Date in accordance
                                              with Section 6(a)

6.   Exchanges

6.1  Initial Exchange:

     Initial Exchange Date:                   Closing Date

     Party A Initial Exchange Amount:         The A$ Equivalent of the Party B
                                              Initial Exchange Amount, being
                                              A$[     ]

     Party B Initial Exchange Amount:         One half of the Initial Invested
                                              Amount of the Relevant Notes on
                                              the Issue Date, being US$[    ]

                                              Notwithstanding Section 2(a)(ii)
                                              of the Agreement, Party A must
                                              pay the Party A Initial Exchange
                                              Amount to Party B by 4.00pm
                                              (Sydney time) on the Initial
                                              Exchange Date and Party B must
                                              pay Party A the Party B Initial
                                              Exchange Amount by 4.00pm (New
                                              York time) on the Initial
                                              Exchange Date. Section 2(a)(v) of
                                              the Agreement will not apply to
                                              the payments of the Initial
                                              Exchange Amounts.

6.2  Interim Exchange:

     Interim Exchange Date:                   Each Distribution Date (other
                                              than the Final Exchange Date)

                                                                              31

<PAGE>

     Party A Interim Exchange Amount:         In respect of an Interim
                                              Exchange Date means the US$
                                              Equivalent of one half of the A$
                                              Class A-1 Principal Amount in
                                              relation to the Distribution Date
                                              occurring on that Interim
                                              Exchange Date

     Party B Interim Exchange Amount:         In respect of an Interim Exchange
                                              Date means one half of the A$
                                              Class A-1 Principal Amount in
                                              relation to the Distribution Date
                                              occurring on that Interim
                                              Exchange Date
6.3  Final Exchange:

     Final Exchange Date:                     Termination Date

     Party A Final Exchange Amount:           The US$ Equivalent of one half of
                                              the A$ Class A-1 Principal Amount
                                              in relation to the Distribution
                                              Date which is the Final Exchange
                                              Date

     Party B Final Exchange Amount:           One half of the A$ Class A-1
                                              Principal Amount in relation to
                                              the Distribution Date which is
                                              the Final Exchange Date

7.   Exchange Rates:

     For the purpose of the definitions of
     "A$ Equivalent" and "US$
     Equivalent":

     US$ Exchange Rate:                       [             ]

     A$ Exchange Rate:                        [             ]

8.   Account Details:

8.1  Payments to Party A

     Account for payments in US$:             The account notified in writing
                                              by Party A to Party B in
                                              accordance with Part 5(3)(ii) of
                                              the Schedule to the Agreement

     Account for payments in A$:              The account notified in writing
                                              by Party A to Party B in
                                              accordance with Part 5(3)(i) of
                                              the Schedule to the Agreement

8.2  Payments to Party B

     Account for payments in US$:             The account notified in writing
                                              by the Principal Paying Agent to
                                              Party A in accordance with Part
                                              5(2)(ii) of the Schedule to the
                                              Agreement

     Account for payments in AS:              The account notified in writing
                                              by Party B to Party A in
                                              accordance with Part 5(2)(i) of
                                              the Schedule to the Agreement

9.   Notifications to Party A                 On or before the Determination
                                              Time in respect of each
                                              Distribution Date the Manager
                                              must notify Party A and the
                                              Standby Swap Provider in writing
                                              of:

                                              (a)    the A$ Class A-1 Principal
                                                     Amount which the Manager
                                                     has directed Party B to
                                                     pay to Party A on that
                                                     Distribution Date pursuant
                                                     to clause 10.5(b)(i) of
                                                     the Series Supplement;

                                                                              32

<PAGE>

                                              (b)    the A$ Class A-1 Interest
                                                     Payment in relation to
                                                     that Distribution Date;

                                              (c)    the amounts (if any)
                                                     allocated to the Class A-1
                                                     Notes in respect of any
                                                     Principal Charge-off or
                                                     Principal Charge-off
                                                     Reimbursement on the
                                                     immediately preceding
                                                     Determination Date in
                                                     accordance with Conditions
                                                     7.9 and 7.10 of the Note
                                                     Conditions; and

                                              (d)    the A$ Class A-1 Unpaid
                                                     Interest Payment (if any)
                                                     in relation to that
                                                     Distribution Date.

10.  Offices:                                 The Office of Deutsche Bank (on
                                              or from the Novation Date) as
                                              Party A is New York.

                                              The Office of CBA as Party A for
                                              each Transaction is Sydney.

                                              The Office of Party B for each
                                              Transaction is Sydney.
Please confirm that the above correctly sets out the terms of our agreement in
respect of each Transaction to which this Confirmation relates by signing and
returning this Confirmation to us by facsimile today.

                                                                              33

<PAGE>

Executed documents will follow by mail.

Yours sincerely

Confirmed as at the date first written above:

SIGNED for and on behalf of
DEUTSCHE BANK AG, NEW YORK
BRANCH

By:

         (Authorised Officer )

Name:

Title:

<TABLE>
<S>                                            <C>
Confirmed as at the date first written above:  Confirmed as at the date first written above:

SIGNED for and on behalf of                    SIGNED for and on behalf of
PERPETUAL TRUSTEE                              SECURITISATION ADVISORY SERVICES PTY. LIMITED, ABN 88  064 133 946
COMPANY LIMITED, ABN 42 000 001 007
as trustee of the Series
[        ] Medallion Trust

By:                                            By:
         (Authorised Officer)                            (Authorised Officer)

Name:                                          Name:

Title:                                         Title:
</TABLE>

SIGNED for and on behalf of
COMMONWEALTH BANK OF
AUSTRALIA, ABN 48 123 123 124

By:
         (Authorised Officer)

Name:

Title:

                                                                              34

<PAGE>

                             Definitions Schedule

In this Confirmation and in the Agreement to the extent that it relates to the
Series Trust, unless the context otherwise requires:

"A$ Class A-1 Unpaid Interest Payment" means in relation to a Distribution
Date the amount available to be allocated towards payment to Party A in respect
of A$ Class A-1 Unpaid Interest Amounts on that Distribution Date in accordance
with clause 10.2(k)(i) of the Series Supplement determined on the basis that
all amounts allocated towards payment of A$ Class A-1 Interest Amounts and A$
Class A-1 Unpaid Interest Amounts pursuant to clause 10.2(k)(i) of the Series
Supplement are allocated first towards payment of A$ Class A-1 Interest Amounts
and then, once the A$ Class A-1 Interest Amounts are paid in full, towards
payment of A$ Class A-1 Unpaid Interest Amounts.

"Determination Time" in relation to a Distribution Date means on or about
11.00am Sydney time 1 Business Day prior to that Distribution Date.

"Distribution Date" has the same meaning as in the Series Supplement.

"Note Conditions"  means the terms and conditions of the Relevant Notes annexed
to the Relevant Notes.

"Relevant Calculation Amount" means the Calculation Amount referred to in
paragraph 5.1 of this Confirmation.

"Relevant Notes" means the Class A-1 Notes issued by the Trustee under the US
Dollar Note Trust Deed.

"Relevant Noteholders" means the Class A-1 Noteholders as that term is defined
in the US Dollar Note Trust Deed.

"Relevant Note Trustee" means The Bank of New York, New York Branch or, if the
Bank of New York is removed or retires as the trustee for the Class A-1
Noteholders, any person appointed from time to time in its place in accordance
with the US Dollar Note Trust Deed.

"Scheduled Maturity Date" has the same meaning as in the Series Supplement.

"Security Trust Deed" means the Security Trust Deed dated on or about the date
of this Confirmation between Party B, the Manager, the Relevant Note Trustee
and P.T. Limited, ABN 67 004 454 666.

"Series Supplement" means the Series Supplement dated on or about the date of
this Confirmation between CBA, Homepath Pty Limited, ABN 35 081 986 530, Party
B and the Manager.

"US Dollar Note Trust Deed" means the US Dollar Note Trust Deed dated on or
about the date of this Confirmation between Party B, the Manager and the
Relevant Note Trustee.

Terms defined in the Note Conditions have the same meaning in this Confirmation
unless otherwise defined in this Confirmation.

                                                                              35

<PAGE>

 Paragraph 13 to New York Law Credit Support Annex

(13)    Elections and Variables

        (a)     Security Interest for "Obligations"

                The term "Obligations" as used in this Annex includes the
                additional obligations referred to in Paragraph 13(m)(vii)(B).

        (b)     Credit Support Obligations

                (i)     Delivery Amount and Return Amount

                        "Delivery Amount" for a Valuation Date means the
                        amount of collateral calculated in accordance with
                        Part 5(22)(d)(i) of the Schedule to this Agreement for
                        that Valuation Date.

                        "Return Amount" for a Valuation Date means the amount
                        of collateral calculated in accordance with Part 5(22)
                        (d)(ii) of the Schedule to this Agreement for that
                        Valuation Date.

                (ii)    Eligible Collateral.  The following items will qualify
                        as "Eligible Collateral" for Party A provided that the
                        items specified in paragraphs (E), (F), (G)and(H) will
                        only qualify as "Eligible Collateral" of Party A upon
                        receipt by Party B and the Standby Swap Provider of an
                        opinion as to the perfection of the Secured Party's
                        security interest in such items in form and substance
                        (and issued by legal counsel) satisfactory to Party B
                        and the Standby Swap Provider:

                                                                      Valuation
                                                                     Percentage
                        (A)     negotiable debt obligations issued        98%
                                by the U.S. Treasury Department
                                having a remaining maturity of not
                                 more than one year

                        (B)     negotiable debt obligations issued        95%
                                by the U.S. Treasury Department
                                having a remaining maturity of more
                                than one year but not more than five
                                years

                        (C)     negotiable debt obligations issued by     93%
                                the U.S. Treasury Department having a
                                remaining maturity of more than five
                                years but not more than ten years

                        (D)     negotiable debt obligations issued by     90%
                                the U.S. Treasury Department having a
                                remaining maturity of more than ten
                                years

                        (E)     Agency Securities having a remaining      97%
                                maturity of not more than one year

                        (F)     Agency Securities having a remaining      94%
                                maturity of more than one year but not
                                more than five years

                        (G)     Agency Securities having a remaining      92%
                                maturity of more than five years but
                                not more than ten years

                        (H)     Agency Securities having a remaining      89%
                                maturity of more than ten years.

                                                                              36

<PAGE>

                        (I)    Cash.                                       100%

                        (J)    other Eligible Credit Support and Valuation
                               Percentage agreed by the parties and acceptable
                               to each Rating Agency

                        Notwithstanding the foregoing to the contrary, the
                        Valuation Percentage with respect to all Eligible
                        Credit Support shall be deemed to be 100% with respect
                        to a Valuation Date which is an Early Termination Date.

                        "Agency Securities" means negotiable debt obligations
                        which are fully guaranteed as to both principal and
                        interest by the Federal National Mortgage Association,
                        the Government National Mortgage Corporation or the
                        Federal Home Loan Mortgage Corporation and which have
                        been signed a short term credit rating of A-1+ by S&P,
                        but exclude: (i) interest only and principal only
                        securities; and (ii) collateralized mortgage
                        obligations, real estate mortgage investment conduits
                        and similar derivative securities.

                (iii)   Other Eligible Support

                        Not applicable.

                (iv)    Thresholds

                        (A)    "Minimum Transfer Amount" means with respect to
                               both Party A and Party B: US$100,000.

                        (B)    Rounding. The Delivery Amount and the Return
                               Amount will be rounded to the nearest integral
                               multiple of US$10,000.

        (c)     Valuation and Timing

                (i)     "Valuation Agent" means Party A.

                (ii)    "Valuation Date" means the last Business Day of each
                        week and, at the option of either Party A or the
                        Standby Swap Provider, any Business Day between
                        Valuation Dates.

                (iii)   "Valuation Time" means the close of business on the
                        Business Day before the Valuation Date; provided that
                        the calculations of Value and Exposure will be made as
                        of approximately the same time on the same date.

                (iv)    "Notification Time" means 11:00 am New York time on the
                        second Business Day after the Valuation Date.

        (d)     Conditions Precedent and Secured Party's Rights and Remedies

                There are no "Specified Conditions" applicable to Party A. The
                following is a Specified Condition with respect to Party B:

                "If an Early Termination Date has been designated in respect
                of the each Transaction provided that if an amount is due by
                Party A to Party B in respect of that Early Termination Date
                pursuant to Section 6, that amount has been paid in full.".

        (e)     Substitution

                (i)     "Substitution Date" has the meaning specified in
                        Paragraph 4(d)(ii).

                                                                              37

<PAGE>

                (ii)    Consent.  The Pledgor must obtain the Secured Party's
                        consent for any substitution pursuant to Paragraph 4(d)
                        However such consent is not to be unreasonably withheld
                        and the parties agree that not wanting to accept a
                        particular type of Substitute Credit Support is not in
                        itself a reasonable basis for withholding consent if
                        the Substitute Credit Support is Eligible Collateral.
                        The consent may be provided in a manner described in
                        Section 12 or otherwise, including orally.

        (f)     Dispute Resolution

                (i)     "Resolution Time" means 11:00 am New York time.

                (ii)    "Value". Not applicable.

                (iii)   "Alternative". The provisions of Paragraph 5 will
                        apply.

        (g)     Holding and Using Posted Collateral

                (i)     Eligibility to Hold Posted Collateral; Custodians.

                        Party A: Not Applicable.

                        Party B is not entitled to hold Posted Collateral. It
                        must appoint a Custodian to hold Posted Collateral on
                        its behalf pursuant to paragraph 6(b). Party B may
                        only appoint a Custodian to hold Posted Collateral on
                        its behalf if the following conditions are satisfied:

                        (A)    Party B is not a Defaulting Party;

                        (B)    Party B's Custodian will always be the Principal
                               Paying Agent, unless that party is Party A;

                        (C)    if the Principal Paying Agent is Party A,
                               then Party B must appoint a Custodian which is
                               a Bank (as defined in the  Federal Deposit
                               Insurance Act, as amended) outside Australia,
                               whoserating (with respect to its long term
                               unsecured, unsubordinated indebtedness) is at
                               all times at least Aa2 by Moody's and its
                               short term debt rating is A-1+/F1+ (S&P/Fitch),
                               and Party B must notify Party A in writing
                               of this appointment and of the relevant
                               account for Paragraph 13(l); and

                        (D)    Posted Collateral may only be held in one
                               or more accounts in the name of Party B in the
                               United States and any account established by
                               Party B's Custodian to hold Posted Collateral
                               shall be established and maintained for the
                               sole purpose of receiving deliveries of and
                               holding Posted Collateral.

                (ii)    Use of Posted Collateral.  The provisions of
                        paragraph 6(c) will not apply to Party B and its
                        Custodian.  Party B's Custodian will permit Party B
                        to secure Party B's obligations under the Relevant
                        Notes by granting to the Security Trustee the charge
                        under the Security Trust Deed over Party B's rights
                        in relation to the Posted Collateral, but subject to
                        Paragraph 13(m)(vi) of this Annex.

        (h)     Distributions and Interest Amount

                (i)     Interest Rate.  The "Interest Rate", in respect of
                        Posted Collateral which is denominated in US$, for any
                        day means the Federal Funds Overnight

                                                                              38

<PAGE>

                        Rate. For the purposes hereof, "Federal Funds
                        Overnight Rate" means, for any day, an interest rate
                        per annum equal to the rate published as the Federal
                        Funds Effective Rate that appears on Telerate Page
                        118 for such day.  The "Interest Rate" in respect of
                        Posted Collateral denominated in any other Eligible
                        Currency means the rate as agreed between the parties.

                (ii)    Transfer of Interest Amount.  The Transfer of Interest
                        Amount will be made monthly on the second Business Day
                        of each calendar month.

                (iii)   Alternative to Interest Amount.  The provisions of
                        Paragraph 6(d)(ii) will apply.

        (i)     Additional Representation(s)

                None.

        (j)     Other Eligible Support and Other Posted Support

                "Value" and "Transfer" with respect to Other Eligible Support
                and Other Posted Support means: not applicable.

        (k)     Demands and Notices

                All demands, specifications and notices under this Annex will
                be made pursuant to the Section 12 of this Agreement;
                provided, that any such demand, specification or notice may
                be made by telephone ("Telephone Notice") between duly
                authorised employees of each party if such Telephone Notice
                is confirmed by a subsequent written instruction (which may
                be delivered via facsimile) by the close of business of the
                same day that such Telephone Notice is given.

        (l)     Addresses for Transfers

                Party A:  Party A to specify account for returns of collateral.

                Party B:  Party B must notify Party A of its Custodian's
                account.

        (m)     Other Provisions

                (i)     Paragraph 4(b) of the Annex is replaced by the
                        following:

                        "(b)     Transfer Timing. Subject to Paragraph
                                 4(a) and 5 and unless otherwise specified, if
                                 a demand for the Transfer of Eligible Credit
                                 Support or Posted Credit Support is made by
                                 the Notification Time, then the relevant
                                 Transfer will be made within three Business
                                 Days of receipt of the demand; if a demand is
                                 made after the Notification Time, then the
                                 relevant Transfer will be made within four
                                 Business Days of receipt of the demand.".

                (ii)    Event of Default

                        Paragraph 7(i) of the Annex is amended, on line 3, by
                        replacing "two Business Days" with "three Business
                        Days".

                (iii)   Party A's expenses

                        Subject to Section 15 of the Agreement, Party B agrees
                        to pay Party A's costs and expenses in relation to or
                        caused by any breach by Party B of

                                                                              39

<PAGE>

                      its obligations under this Annex. Party A acknowledges
                      and agrees that its obligations under this Annex will not
                      be affected by a failure by Party B to comply with its
                      obligations under this paragraph (m)(iii).

               (iv)   Governing Law notwithstanding

                      Notwithstanding that the Agreement is expressed to be
                      governed by the laws of New South Wales, this Annex
                      (but not any other provisions of the Agreement) shall be
                      governed by and construed in accordance with the laws of
                      the State of New York without giving effect to choice of
                      law doctrine and parties hereto agree that proceedings
                      relating to any dispute arising out of or in connection
                      with this Annex shall be subject to the non-exclusive
                      jurisdiction of the federal or state courts of competent
                      jurisdiction in the Borough of Manhattan in New York
                      City, State of New York.

               (v)    No trial by jury

                      Each party waives, to the fullest extent permitted by
                      applicable law, any right it may have to a trial by jury
                      in respect of any suit, action or proceeding relating to
                      this Annex.

               (vi)   No pooling of Collateral with other Security Trust
                      security

                      Notwithstanding any provision in the Master Trust Deed,
                      Series Supplement or Security Trust Deed, but without
                      prejudice to Party B's rights under Paragraph 8(a) of
                      this Annex, no party shall be entitled to deal with the
                      Posted Collateral in any manner inconsistent with the
                      rights of the Pledgor under Paragraphs 3(d), 4(b) or
                      8(b)(iii) of this Annex, and each party covenants to
                      the other that it shall not permit any other person to
                      gain any rights in relation to the Posted Collateral that
                      are inconsistent with the rights of the Pledgor.

               (vii)  Rights in Relation to Deutsche Bank's Posted Collateral

                      (A)    The Secured Party will hold its security interest
                             in, lien on and right of Set- Off against all
                             Posted Collateral Transferred or received by the
                             Secured Party from Deutsche Bank as Party A (or
                             from the Standby Swap Provider on behalf of
                             Deutsche Bank as Party A under Part
                             5(23)(a)(iv)(B) of this Schedule or clause 2 of
                             the Side Agreement but not from the Standby Swap
                             Provider in its capacity as Party A following the
                             Novation Date) hereunder on trust for the benefit
                             of:

                             (1)  the Series Trust as security for the
                                  Obligations of Deutsche Bank as Party A to
                                  the Secured Party as trustee of the Series
                                  Trust (other than pursuant to Paragraph
                                  13(m)(vii)(B)); and

                             (2)  the Standby Swap Provider as security for the
                                  Obligations of Deutsche Bank as Party A to
                                  the Standby Swap Provider pursuant to Parts
                                  5(23) (d) and (e) of the Schedule to this
                                  Agreement, as that term is defined in Section
                                  16(f)(iii)(A), and all Deutsche Bank's
                                  present and future obligations to the Standby
                                  Swap Provider under clause 2(v) of the Side
                                  Agreement,

                             in accordance with the provisions of this
                             Paragraph

                                                                              40

<PAGE>

                             13(m)(vii), and Paragraph 2 is varied accordingly.

                      (B)    Deutsche Bank as Party A covenants in favour of the
                             Secured Party that it will duly and punctually pay
                             to the Secured Party:

                             (1)  all its Obligations to the Standby Swap
                                  Provider pursuant to Parts 5(23)(d) and (e) of
                                  the Schedule to this Agreement, as that term
                                  is defined in Section 16(f)(iii)(A); and

                             (2)  all its present and future obligations to the
                                  Standby Swap Provider under clause 2(v) of the
                                  Side Agreement,

                             as and when the same fall due for payment.
                             Notwithstanding the foregoing, every payment by
                             Deutsche Bank as Party A, or the Secured Party in
                             accordance with Paragraph 13(m)(vii)(C)(2)(b), to
                             the Standby Swap Provider will operate as a
                             payment by Deutsche Bank as Party A to the Secured
                             Party in satisfaction of Deutsche Bank's
                             obligations as Party A pursuant to this Paragraph
                             13(m)(vii)(B). The Secured Party will hold the
                             benefit of its rights under this Paragraph
                             13(m)(vii)(B) on trust for the Standby Swap
                             Provider in accordance with the provisions of this
                             Paragraph 13(m)(vii).

                      (C)    The Secured Party must deal with all Posted
                             Collateral Transferred or received by the Secured
                             Party from Deutsche Bank as Party A (or from the
                             Standby Swap Provider on behalf of Deutsche Bank
                             as Party A but not from the Standby Swap Provider
                             in its capacity as Party A) hereunder:

                             (1)  prior to the Novation Date, in accordance
                                  with the provisions of this Agreement other
                                  than this Paragraph 13(m)(vii);

                             (2)  on or after the Novation Date:

                                  (a)   until the date upon which the Standby
                                        Swap Provider has initially fulfilled
                                        its obligations as Party A pursuant to
                                        Part 5(22)(a) of the Schedule to this
                                        Agreement, such Posted Collateral must
                                        be held by the Secured Party and not
                                        Transferred or otherwise applied;

                                  (b)   on or after the date upon which the
                                        Standby Swap Provider has initially
                                        fulfilled its obligations as Party A
                                        pursuant to Part 5(22)(a) of the
                                        Schedule to this Agreement and until
                                        Deutsche Bank as Party A has paid in
                                        full all of its Obligations to the
                                        Standby Swap Provider pursuant to Parts
                                        5(23)(d) and (e) of the Schedule to
                                        this Agreement, as that term is defined
                                        in Section 16(f)(iii)(A), and all its
                                        present and future obligations to the
                                        Standby

                                                                              41

<PAGE>

                                        Swap Provider under clause 2(v) of the
                                        Side Agreement, the Secured Party must,
                                        upon the instructions of the Standby
                                        Swap Provider, exercise the rights and
                                        remedies pursuant to Paragraph 8(a) in
                                        respect of such Posted Collateral, and
                                        Party A agrees that the Secured Party
                                        may exercise such rights and remedies
                                        under Paragraph 8(a) to the same extent
                                        and with the same effect as if an Event
                                        of Default or Specified Condition had
                                        occurred with respect to Party A, and
                                        apply the proceeds of the exercise of
                                        such rights and remedies in
                                        satisfaction of Deutsche Bank's
                                        Obligations as Party A to the Standby
                                        Swap Provider pursuant to Parts
                                        5(23)(d) and (e) of the Schedule to
                                        this Agreement, as that term is defined
                                        in Section 16(f)(iii)(A), as and when
                                        these are due and payable and Deutsche
                                        Bank's present and future obligations
                                        to the Standby Swap Provider under
                                        clause 2(v) of the Side Agreement as
                                        and when these are due and payable (and
                                        to the Secured Party pursuant to
                                        Paragraph 13(m)(vii)(B)) until all such
                                        Obligations have been paid in full; and

                                  (c)   on or after the date upon which the
                                        Standby Swap Provider has initially
                                        fulfilled its obligations as Party A
                                        pursuant to Part 5(22)(a) of the
                                        Schedule to this Agreement and Deutsche
                                        Bank as Party A has paid in full all
                                        its Obligations to the Standby Swap
                                        Provider pursuant to Parts 5(23)(d) and
                                        (e) of the Schedule to this Agreement,
                                        as that term is defined in  Section
                                        16(f)(iii)(A), and no amounts are or
                                        thereafter may become payable in
                                        respect to such Obligations and has
                                        paid in full all its present and
                                        future obligations to the Standby Swap
                                        Provider under clause 2(v) of the Side
                                        Agreement (including by virtue of
                                        Paragraph 13(m)(vii)(C)(2)(b)) and no
                                        amounts are or thereafter may become
                                        payable with respect to such
                                        obligations, the Secured Party must
                                        Transfer to Deutsche Bank as Party A
                                        all such Posted Collateral and the
                                        Interest Amount in relation to such
                                        Posted Collateral, if any.

                      (D)    The Standby Swap Provider indemnifies the Secured
                             Party from and against any cost or liability
                             incurred by the Secured

                                                                              42

<PAGE>

                             Party in complying with the instructions of the
                             Standby Swap Provider pursuant to Paragraph
                             13(m)(vii)(C)(2)(b). The Standby Swap Provider
                             acknowledges and agrees that the Secured Party
                             may not, and is not required, to take any action
                             to exercise its rights and remedies in relation
                             to the Posted Collateral in respect of the
                             Obligations of Deutsche Bank as Party A to the
                             Standby Swap Provider except upon the directions
                             of the Standby Swap Provider and in accordance
                             with this Paragraph 13(m)(vii).

                      (E)    Following the Novation Date, the Secured Party
                             must ensure that any Posted Collateral
                             Transferred or received by the Secured Party
                             from Deutsche Bank as Party A is held by the
                             Custodian separately from, and is not
                             co-mingled with, Posted Collateral Transferred
                             or received by the Secured Party from the Standby
                             Swap Provider as Party A.

                      (F)    This paragraph 13(m)(vii) applies notwithstanding
                             any other provision of this Agreement.

               (viii) Pledgor and Secured Party

                      In this Annex:

                      (a)    "Pledgor" means only Party A; and

                      (b)    "Secured Party" means only Party B.

               (ix)   Non-Australian Assets

                      CBA must only Transfer Posted Collateral to the Secured
                      Party from its assets held outside Australia.

               (x)    Dispute Resolution

                      Paragraph 5(i) is amended by:

                      (A)    replacing the word "Exposure" with the words "the
                             Delivery Amount or the Return Amount, as the case
                             may be" in the first paragraph of Paragraph 5(i);

                      (B)    adding the word "and" at the end of Paragraph
                             5(i)(A) and deleting Paragraph 5(i)(B).

               (xi)   Specified Condition

                      (A)    In Paragraph 4(a)(ii) the words "or Specified
                             Condition" are deleted.

                      (B)    In Paragraph 8(b) the words "or Specified
                             Condition" are deleted and replaced with the
                             following "with respect to the Secured Party or a
                             Specified Condition has occurred".

               (xii)  Return Amounts

                      If under this Agreement, as that term is defined in
                      Section 16(f)(iii)(A), a Novation Date has occurred,
                      each Transfer obligation of the Secured Party under
                      Paragraphs 3, 4(d)(ii), 5 and 6(d) is subject to the
                      condition precedent that the Standby Swap Provider, in
                      its discretion, has

                                                                              43

<PAGE>

                      consented to the Transfer unless Deutsche Bank as Party
                      A has paid in full all its Obligations to the Standby
                      Swap Provider pursuant to Parts 5(23)(d) and (e) of the
                      Schedule to this Agreement, as that term is defined in
                      Section 16(f)(iii)(A), and no amounts are or thereafter
                      may become payable with respect to such Obligations,
                      and has paid in full all its present and future
                      obligations to the Standby Swap Provider under clause
                      2(v) of the Side Agreement (including by virtue of
                      Paragraph 13(m)(vii)(C)(2)(b)), and no amounts are or
                      thereafter may become payable with respect to such
                      obligations.

                                                                              44<PAGE>
                                                                    Exhibit 10.1
================================================================================

                            ASSET PURCHASE AGREEMENT

                          dated as of February 12, 2002

                                      among

                             CBS BROADCASTING INC.,

                            YOUNG BROADCASTING INC.,

                    YOUNG BROADCASTING OF LOS ANGELES, INC.,

                                       and

                            FIDELITY TELEVISION, INC.

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

<PAGE>

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

Section                                                                                             Page
-------                                                                                             ----
<S>                                                                                                <C>
ARTICLE I         DEFINITIONS ..................................................................       1

   SECTION 1.01.        Definitions ............................................................       1
   SECTION 1.02.        Other Defined Terms ....................................................       6
   SECTION 1.03.        Terms Generally .......................................................        7

ARTICLE II        PURCHASE AND SALE ............................................................       8

   SECTION 2.01.        Purchase and Sale ......................................................       8
   SECTION 2.02.        Excluded Assets ........................................................       9
   SECTION 2.03.        Assumed Liabilities ....................................................       9
   SECTION 2.04.        Excluded Liabilities ...................................................      10
   SECTION 2.05.        Assignment of Contracts and Rights .....................................      10
   SECTION 2.06.        Purchase Price; Allocation of Purchase Price ...........................      11
   SECTION 2.07.        Collection of Accounts Receivable ......................................      11
   SECTION 2.08.        Closing ................................................................      12
   SECTION 2.09.        General Proration ......................................................      12
   SECTION 2.10.        Programming Proration ..................................................      14
   SECTION 2.11.        Capital Lease Obligation Proration .....................................      16
   SECTION 2.12.        The Other Proration ....................................................      17

ARTICLE III       REPRESENTATIONS AND WARRANTIES OF THE YOUNG ENTITIES .........................      19

   SECTION 3.01.        Corporate Existence and Power ..........................................      19
   SECTION 3.02.        Corporate Authorization ................................................      19
   SECTION 3.03.        Governmental Authorization .............................................      19
   SECTION 3.04.        Noncontravention .......................................................      19
   SECTION 3.05.        Contracts ..............................................................      20
   SECTION 3.06.        Intangible Property ....................................................      21
   SECTION 3.07.        Real Property ..........................................................      22
   SECTION 3.08.        Title to Purchased Assets; Liens .......................................      23
   SECTION 3.09.        Sufficiency of Assets ..................................................      23
   SECTION 3.10.        Condition of Equipment .................................................      23
   SECTION 3.11.        Financial Information ..................................................      23
   SECTION 3.12.        Absence of Certain Changes or Events ...................................      23
   SECTION 3.13.        Absence of Litigation ..................................................      24
   SECTION 3.14.        Compliance with Laws ...................................................      25
   SECTION 3.15.        FCC Matters; Qualification .............................................      25
   SECTION 3.16.        Cable and Satellite Matters ............................................      25
   SECTION 3.17.        Employees; Labor Matters ...............................................      26
   SECTION 3.18.        Employee Benefit Plans .................................................      26
   SECTION 3.19.        Environmental Matters ..................................................      27
   SECTION 3.20.        Taxes ..................................................................      28
   SECTION 3.21.        Brokers ................................................................      28

ARTICLE IV        REPRESENTATIONS AND WARRANTIES OF BUYER ......................................      28

   SECTION 4.01.        Corporate Existence and Power ..........................................      28
   SECTION 4.02.        Corporate Authorization ................................................      28
   SECTION 4.03.        Governmental Authorization .............................................      29
   SECTION 4.04.        Noncontravention .......................................................      29
   SECTION 4.05.        Absence of Litigation ..................................................      29
   SECTION 4.06.        FCC Qualification ......................................................      29
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                       <C>
   SECTION 4.07.        Brokers ......................................................    29

ARTICLE V         COVENANTS OF THE YOUNG ENTITIES ....................................    29

   SECTION 5.01.        Operations Pending Closing ...................................    29
   SECTION 5.02.        Access to Information ........................................    32
   SECTION 5.03.        Title Insurance and Surveys ..................................    32
   SECTION 5.04.        Financial Reports ............................................    33
   SECTION 5.05.        Employees ....................................................    33
   SECTION 5.06.        Estoppel Certificates ........................................    33
   SECTION 5.07.        Risk of Loss .................................................    33
   SECTION 5.08.        Intentionally Omitted ........................................    33
   SECTION 5.09.        Payments .....................................................    34
   SECTION 5.10.        YBI Credit Agreement .........................................    34
   SECTION 5.11.        YBI Assets ...................................................    34
   SECTION 5.12.        Transition Services ..........................................    34
   SECTION 5.13.        Obligations of Sellers .......................................    34
   SECTION 5.14.        Representation Agreement .....................................    34
   SECTION 5.15.        Intentionally Omitted ........................................    35

ARTICLE VI        COVENANTS OF BUYER .................................................    35

   SECTION 6.01.        Access to Information ........................................    35
   SECTION 6.02.        Other Agreements .............................................    35

ARTICLE VII       COVENANTS OF BUYER AND THE YOUNG ENTITIES ..........................    35

   SECTION 7.01.        Commercially Reasonable Efforts; Further Assurances ..........    35
   SECTION 7.02.        Certain Filings; Further Actions .............................    36
   SECTION 7.03.        Control Prior to Closing .....................................    36
   SECTION 7.04.        Public Announcements .........................................    36
   SECTION 7.05.        Notices of Certain Events ....................................    36

ARTICLE VIII      PENSION, EMPLOYEE AND UNION MATTERS ................................    37

   SECTION 8.01.        Employement ..................................................    37
   SECTION 8.02.        Savings Plan .................................................    38
   SECTION 8.03.        Employee Welfare Plans ................................. .....    38
   SECTION 8.04.        Vacation .....................................................    38
   SECTION 8.05.        Bargaining Agreement .........................................    38
   SECTION 8.06.        Non-Solicitation by the Young Entities .......................    38
   SECTION 8.07.        Sellers' Stay Bonuses ........................................    39

ARTICLE IX        TAX MATTERS ........................................................    39

   SECTION 9.01.        Bulk Sales ...................................................    39
   SECTION 9.02.        Transfer Taxes ...............................................    39

ARTICLE X         CONDITIONS TO CLOSING ..............................................    39

   SECTION 10.01.       Conditions to Obligations of Buyer and the Young Entities ....    39
   SECTION 10.02.       Conditions to Obligations of the Young Entities ..............    40
   SECTION 10.03.       Conditions to Obligations of Buyer ...........................    40
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                    <C>
ARTICLE XI        TERMINATION ......................................   41

   SECTION 11.01.       Termination ................................   41
   SECTION 11.02.       Effect of Termination ......................   42

ARTICLE XII       SURVIVAL; INDEMNIFICATION ........................   42

   SECTION 12.01.       Survival ...................................   42
   SECTION 12.02.       Indemnification by Buyer ...................   42
   SECTION 12.03.       Indemnification by YBI .....................   43
   SECTION 12.04.       Notification of Claims .....................   44

ARTICLE XIII      GENERAL PROVISIONS ...............................   44

   SECTION 13.01.       Expenses. ..................................   44
   SECTION 13.02.       Notices ....................................   45
   SECTION 13.03.       Headings ...................................   45
   SECTION 13.04.       Severability ...............................   45
   SECTION 13.05.       Entire Agreement ...........................   46
   SECTION 13.06.       Successors and Assigns .....................   46
   SECTION 13.07.       No Recourse ................................   46
   SECTION 13.08.       No Third-Party Beneficiaries ...............   46
   SECTION 13.09.       Amendments and Waivers .....................   46
   SECTION 13.10.       Governing Law; Jurisdiction ................   46
   SECTION 13.11.       WAIVER OF JURY TRIAL .......................   46
   SECTION 13.12.       Counterparts ...............................   46
   SECTION 13.13.       No Presumption .............................   47
</TABLE>

                                       iii

<PAGE>

         ASSET PURCHASE AGREEMENT (this "Agreement") dated as of February 12,
2002 among CBS Broadcasting Inc., a New York corporation ("Buyer"), Young
Broadcasting of Los Angeles, Inc., a Delaware corporation ("YBLA" or a
"Seller"), Fidelity Television, Inc., a California corporation ("Fidelity" or a
"Seller", and with YBLA, the "Sellers"), and Young Broadcasting Inc., a Delaware
corporation ("YBI", and together with YBLA and Fidelity, the "Young Entities").

                              W I T N E S S E T H :

         WHEREAS, Sellers are solely engaged in the business of television
broadcasting and together operate and own all of the assets and licenses used in
the operation of commercial television broadcast station KCAL-TV, Channel 9 (DTV
Channel 43), in Los Angeles, California (the "Station"), under licenses issued
by the Federal Communications Commission (the "FCC");

         WHEREAS, Buyer desires to purchase from Sellers substantially all of
the assets and assume certain specified liabilities, and Sellers desire to sell
substantially all of the assets and transfer certain specified liabilities,
related to the conduct of the Station on the terms and subject to the conditions
hereinafter set forth;

         NOW, THEREFORE, Buyer and the Young Entities hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.01. Definitions. As used in this Agreement, the following
terms shall have the following meanings:

         "Accounting Firm" means (a) an independent certified public accounting
firm in the United States of national recognition (other than a firm that then
serves as the independent auditor for any Young Entity, Buyer or any of their
respective Affiliates) mutually acceptable to Sellers and Buyer or (b) if
Sellers and Buyer are unable to agree upon such a firm, then the regular
independent auditors for Sellers and Buyer shall mutually agree upon a third
independent certified public accounting firm, in which event, "Accounting Firm"
shall mean such third firm. The parties agree to utilize the same Accounting
Firm for the review of each Adjustment Statement.

         "Accounts Receivable" means all accounts receivable (other than
accounts receivable relating to Tradeout Agreements or film and program barter
agreements), and all rights to receive payments under any notes, bonds and other
evidences of indebtedness and all other rights to receive payments, in each case
arising out of sales occurring in the conduct of the Business prior to the
Effective Time for services performed or delivered by the Business prior to the
Effective Time.

         "Action" means any claim, action, suit, arbitration, inquiry,
proceeding or investigation by or before any Governmental Authority.

         "Adjustment Statements" means each of the Settlement Statement,
Programming Statement, Capital Lease Statement and the Other Statement.

         "Affiliate" means, with respect to any Person, any other Person
directly or indirectly Controlling, Controlled by or under common Control with
such other Person.

         "Ancillary Agreements" means, as to any Person, all of the documents
and instruments required to be executed pursuant to this Agreement by such
Person.

         "Balance Sheet Date" means December 31, 2001.

         "Bargaining Agreements" means collective bargaining agreements listed
on Schedule 3.17(b) that the applicable Seller has with AFTRA, IATSE, IBEW, and
DGA covering the Station's bargaining unit employees.

         "Business" means the conduct and operation of the Station.

<PAGE>

         "Business Day" means any day that is not a Saturday, a Sunday or other
day on which banks are required or authorized by Law to be closed in the City of
New York.

         "Capital Lease Obligation" means any liability or obligation of either
Seller as lessee under leases relating to the Business that have been or should
have been recorded as capital leases in accordance with GAAP.

         "CERCLA" means The Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended, 42 U.S.C. (S)(S) 9601 et seq.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Communications Act" means the Communications Act of 1934, as amended,
the Telecommunications Act of 1996, the Children's Television Act and the rules
and regulations promulgated thereunder, in each case, as in effect from time to
time.

         "Confidentiality Agreement" means the confidentiality agreement between
Buyer and YBI dated as of December 14, 2001.

         "Control" means, as to any Person, the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise. The terms "Controlled"
and "Controlling" shall have a correlative meaning.

         "Copyrights" means all copyrights, copyright applications,
registrations and similar rights used by the Station (other than those included
in the Excluded Assets), including those registered copyrights and copyright
applications identified on Schedule 3.06(e)(1).

         "EAT" means an exchange accommodation titleholder as described in
Revenue Procedure 2000-37.

         "Employee Plan" means any (i) employee benefit plan, arrangement or
policy subject to ERISA, including without limitation, any retirement, pension,
deferred compensation, severance, profit sharing, savings, group health, dental,
life insurance, disability or cafeteria plan, policy or arrangement, (ii) any
stock option, stock purchase or equity-based compensation plan, (iii) any bonus
or incentive arrangement and (iv) any severance or termination agreements,
policies or arrangements that are not covered by ERISA, in each case maintained
or contributed to by either Seller or any of its Affiliates for the benefit of
any current or former Station Employee.

         "Environmental Laws" means any applicable statute, ordinance, rule,
regulation, decision, judgment, decree, permit or license, in each case, in
effect on the date of this Agreement or the Closing Date, as applicable, whether
local, state, or federal relating to: (a) Releases or threatened Releases of
Hazardous Materials into the indoor or outdoor environment; (b) the use,
treatment, storage, disposal, handling, discharging or shipment of Hazardous
Material; (c) the regulation of storage tanks; or (d) otherwise relating to
pollution or protection of human health, occupational safety and the indoor or
outdoor environment.

         "Environmental Liabilities" means any and all liabilities arising in
connection with or in any way relating to either Seller (or any predecessor of
either Seller or any prior owner of all or part of either Seller's business and
assets), the Business, the Real Property or any property now or previously
owned, leased or operated by the Business or either Seller in connection with
the Station (as currently or previously conducted), the assets of the Business
or any activities or operations occurring or conducted at the Real Property
(including offsite disposal), whether accrued, contingent, absolute, determined,
determinable or otherwise, which (i) arise under or relate to any Environmental
Law and (ii) relate to actions occurring or conditions existing on or prior to
the Closing Date (including any matter disclosed or required to be disclosed in
Schedule 3.19).

         "Environmental Permits" means all permits, licenses, franchises,
certificates, approvals and other similar authorizations of Governmental
Authorities relating to or required by Environmental Laws and affecting, or
relating in any way to, the Station, the Business or the business of either
Seller as currently conducted.

                                        2

<PAGE>

         "Equipment" means all machinery, equipment, computers, Motor Vehicles,
furniture, fixtures, furnishings, toolings, parts, blank films and tapes and
other items of tangible personal property (other than those included in the
Excluded Assets) owned or leased by either Seller and used in the Business,
including those items listed on Sellers' Fixed Asset Valuation Analysis,
attached hereto as Schedule 1.01(a).

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and the rules and regulations promulgated thereunder.

         "ERISA Affiliate" means, as to any Person any other Person that,
together with such Person, would be treated as a single employer under Section
414 of the Code.

         "FCC Consent" means the FCC's grant of its consent to the assignment of
each of the FCC Licenses from Fidelity to Buyer or its permitted assignee
pursuant to Section 13.06.

         "FCC Licenses" means the FCC licenses, permits and other authorizations
identified on Schedule 3.15(a)(1), and any other license, permit or other
authorization, including any temporary waiver or special temporary
authorization, issued by the FCC for use in the operation of the Station, and
any renewals thereof or any pending application therefor.

         "Final Order" means an action by the FCC (i) that has not been vacated,
reversed, stayed, enjoined, set aside, annulled or suspended, (ii) with respect
to which no request for stay, petition for rehearing, reconsideration or review
or appeal or sua sponte review by the FCC is pending, and (iii) as to which the
time for filing any such request, petition or appeal or for review by the FCC on
its own motion has expired.

         "GAAP" means United States generally accepted accounting principles as
in effect on the Balance Sheet Date, consistently applied.

         "Governmental Authority" means any federal, state or local or any
foreign government, governmental, regulatory or administrative authority, agency
or commission or any court, tribunal, or judicial or arbitral body.

         "Governmental Order" means any order, writ, judgment, injunction,
decree, stipulation, determination or award entered by or with any Governmental
Authority.

         "Hazardous Material" means hazardous or toxic wastes, chemicals,
substances, constituents, pollutants or related material, whether solids,
liquids, or gases, defined or regulated under (S) 101(14) of CERCLA; the
Resource Conservation and Recovery Act, 42 U.S.C. (S)(S)6901 et seq.; the Toxic
Substances Control Act, 15 U.S.C. (S)(S)2601 et seq.; the Safe Drinking Water
Act, 42 U.S.C. (S)(S)300f et seq.; the Clean Air Act, as amended, 42 U.S.C.
(S)(S)7401 et seq.; the Federal Water Pollution Control Act, 33 U.S.C.
(S)(S)1251 et seq.; the Emergency Planning and Community Right-to-Know Act of
1986, 42 U.S.C. (S)(S)11001 et seq.; the Occupational Safety and Health Act of
1970, 29 U.S.C. (S)(S)651 et seq. or any similar federal, state or local
Environmental Laws, including polychlorinated biphenyls (PCBs), asbestos,
radioactive materials and wastes, and petroleum products (including crude oil
and any fraction thereof).

         "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, and the rules and regulations thereunder.

         "Intangible Property" means: (a) the Copyrights; (b) the Patents; (c)
the Trademarks, including all of the rights of each Seller in and to the call
letters "KCAL"; (d) the Trade Secrets; (e) all domain names related to the
Station; (f) all computer software; and (g) all goodwill, if any, associated
therewith.

         "IRS" means the Internal Revenue Service.

         "Knowledge of Sellers" or "Knowledge" of either or both Sellers means
the actual knowledge of any of the following: (1) Vincent Young, Chairman of the
Board of Directors and Chief Executive Officer of YBI; (2) James A. Morgan,
Executive Vice President and Chief Financial Officer of YBI; (3) Deborah
McDermott, Executive Vice President/Operations of YBI; (4) Don E. Corsini,
President of YBLA and the general manager of the

                                        3

<PAGE>

Station; and (5) William Ferrari, Senior Vice President of Finance,
Administration and Business Affairs of the Station.

         "Law" means any United States (federal, state, local) or foreign
statute, law, ordinance, regulation, rule, code, order, judgment, injunction or
decree.

         "Leases" means those leases or license agreements (including any and
all assignments, amendments and other modifications of such leases and license
agreements) pertaining to Real Property, as listed on Schedule 3.05.

         "Lien" means, with respect to any property or asset, any mortgage,
lien, pledge, charge, security interest or encumbrance of any kind, whether
voluntarily incurred or arising by operation of Law or otherwise, in respect of
such property or asset.

         "Material Adverse Effect" means a material adverse effect on (a) the
condition (financial or otherwise), business, assets or results of operations of
the Business; provided, however, that any material adverse effect primarily
attributable to (i) an event or circumstance affecting the television broadcast
industry generally (including legislative or regulatory matters) or (ii) general
economic conditions, in each case shall not constitute a Material Adverse
Effect; or (b) the ability of either Seller to perform its obligations under
this Agreement or any Ancillary Agreement.

         "Material Consents" means the consents to the assignment of each of the
agreements set forth on Schedule 10.03.

         "Motor Vehicles" means all motor vehicles owned by Sellers and used in
the Business, including those listed in Schedule 1.01(c).

         "Multiemployer Plan" means each Employee Plan that is a multiemployer
plan, as defined in Section 3(37) of ERISA.

         "Patents" means all patents, patent applications, registrations and
similar rights used by the Station, including those patents, patent
registrations and patent applications identified in Schedule 1.01(d).

         "PBGC" means the Pension Benefit Guaranty Corporation.

         "Permitted Liens" means, as to any property or asset, (A) liens for
Taxes, assessments and governmental charges not yet due and payable, (B) zoning
laws and ordinances and similar Laws that are not violated by any existing
improvement or that do not prohibit the use of the Real Property as currently
used in the Business; (C) any right reserved to any Governmental Authority to
regulate the affected property (including restrictions stated in the Permits);
(D) in the case of any leased asset, (i) the rights of any lessor under the
applicable lease agreement or any Lien granted by any lessor and (ii) any
statutory Lien for amounts that are not yet due and payable or are being
contested in good faith; (E) inchoate materialmens', mechanics', workmen's,
repairmen's or other like Liens arising in the ordinary course of business; and
(F) in the case of owned Real Property, minor defects of title, easements,
rights-of-way, restrictions and other similar charges or encumbrances not
materially detracting from the value of the Real Property as currently used or
interfering in any material respect with use of the Real Property as currently
used in the Business, (G) any other Lien, other than a Lien securing a monetary
obligation, that does not, individually or in the aggregate, detract from or
interfere with any use of or impair the value of any such property or asset as
currently used, and (H) such title matters as are set forth on Schedule 3.07(a).

         "Person" means any natural person, general or limited partnership,
corporation, limited liability company, firm, association, trust or other legal
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

         "Program Rights" means all rights of either Seller presently existing
or obtained after the date of this Agreement and prior to the Effective Time in
accordance with the terms of this Agreement, to broadcast television programs or
shows as part of the Station's programming, including all film and program
barter agreements, sports rights agreements, news rights or service agreements
and syndication agreements.

                                        4

<PAGE>

         "Real Property" means the real property owned, leased, subleased or
licensed by either Seller used or held for use in the conduct of the Business,
as listed in Schedule 1.01(e), and all buildings, towers, improvements and
fixtures owned, leased, subleased or licensed thereon, together with all strips
and gores, rights of way, easements, privileges and appurtenances pertaining
thereto, including any right, title and interest of either Seller in and to any
street adjoining any portion of the Real Property.

         "Release" means any release, spill, emission, leaking, dumping,
injection, pouring, deposit, disposal, discharge, dispersal, leaching or
migration into the environment (including ambient air, surface water,
groundwater, land surface or subsurface strata) or within any building,
structure, facility or fixture.

         "Station Employees" means the full-time, part-time and per-diem
employees employed by either Seller in the Business.

         "Subsidiary" of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in which) more
than 50% of (a) the issued and outstanding capital stock having ordinary voting
power to elect a majority of the board of directors of such corporation
(irrespective of whether at the time capital stock of any other class or classes
of such corporation shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such partnership,
joint venture or limited liability company or (c) the beneficial interest in
such trust or estate, in each case, is at the time directly or indirectly owned
or Controlled by such Person.

         "Tax" or "Taxes" means all income, excise, gross receipts, ad valorem,
sales, use, employment, franchise, profits, gains, property, transfer, use,
payroll, intangibles or other taxes, fees, stamp taxes, duties, charges, levies
or assessments of any kind whatsoever (whether payable directly or by
withholding), together with any interest and any penalties, additions to tax or
additional amounts imposed by any Tax authority with respect thereto.

         "Tax Returns" means all returns and reports (including elections,
declarations, disclosures, schedules, estimates and information returns)
required to be supplied to a Tax authority relating to Taxes.

         "Title Company" means Chicago Title Insurance Company or such other
title insurance company retained by Buyer.

         "Title IV Plan" means an Employee Plan subject to Title IV of ERISA
other than any Multiemployer Plan.

         "Trademarks" means all of those trade names, trademarks, service marks,
jingles, slogans, logos, trademark and service mark registrations and trademark
and service mark applications (other than those included in Excluded Assets)
owned, used, held for use, licensed by or leased by either Seller relating to
the Station as set forth on Schedule 3.06(e)(2) and the goodwill appurtenant
thereto.

         "Tradeout Agreement" means any contract, agreement or commitment, oral
or written, other than film and program barter agreements, pursuant to which
either Seller has agreed to sell or trade commercial air time or commercial
production services of the Station in consideration for any property or service
in lieu of or in addition to cash;

         "Trade Secrets" means all proprietary information of either Seller
necessary to the operation of the Station (other than as included in the
Excluded Assets) that is not generally known and is used or useful in the
Business, as to which reasonable efforts have been made to prevent unauthorized
disclosure, and which provides a competitive advantage to those who know or use
it.

         "Transfer Taxes" means all excise, sales, use, value added,
registration stamp, recording, documentary, conveyancing, franchise, property,
transfer, gains and similar Taxes, levies, charges and fees.

         "WARN Act" means the Workers Adjustment and Retraining Notification
Act, as amended.

         "YBI Credit Agreement" means (i) the $600 million Credit Agreement
dated as of June 26, 2000 among YBI, the banks listed therein, Bankers Trust
Company as Administrative Agent and the other parties thereto and (ii)

                                        5

<PAGE>

the $200 million Second Amended and Restated Credit Agreement dated as of June
26, 2000 among YBI, the banks listed therein, Bankers Trust Company as
Administrative Agent and Issuing Bank, as each of the same may be amended,
modified, renewed, refunded, replaced or refinanced from time to time.

         SECTION 1.02. Other Defined Terms. The following terms have the
meanings defined for such terms in the Sections set forth below:

Term                                                               Section
----                                                               -------

Active Employees                                                   8.01(a)
Antitrust Laws                                                     7.01(d)
A&P  Grant                                                         5.01(q)(D)
Appraisal Report                                                   2.06(b)
Assumed Liabilities                                                2.03
Audited Balance Sheet                                              5.04(b)
Audited Financial Statements                                       5.04(b)
Buyer                                                              Preamble
Buyer's 401(k) Plan                                                8.02
Buyer Indemnified Parties                                          12.03(a)
Buyer Warranty Breach                                              12.02(a)(i)
Capital Lease Statement                                            2.11
Capital Lease Statement Notice of Disagreement                     2.11(b)
Closing                                                            2.08
Closing Date                                                       2.08
Closing Date Bonus Liability Estimated Amount                      2.12
Closing Date Cash Amount                                           2.06(a)
Closing Date Estimated Capital Lease Obligations                   2.11
Closing Date Vacation Liability Estimated Amount                   2.12
Collection Period                                                  2.07(a)
Contracts                                                          2.01(c)
DOJ                                                                7.01(d)
Discretionary Termination Date                                     5.14(d)
Effective Time                                                     2.09(a)
Employment Commencement Date                                       8.01(a)
Excluded Assets                                                    2.02
Excluded Liabilities                                               2.04
FCC                                                                Recitals
FCC Applications                                                   7.01(c)
Fidelity                                                           Preamble
Final Capital Lease Statement                                      2.11(b)
Final Other Statement                                              2.12(b)
Final Programming Statement                                        2.10(e)
Final Settlement Statement                                         2.09(e)
Fresh Bait Settlement                                              2.02(l)
FTC                                                                7.01(d)
Inactive Employees                                                 8.01(a)
Indemnified Party                                                  12.04(a)
Indemnifying Party                                                 12.04(a)
Lakers Acknowledgement                                             5.09(b)
Laker Broadcast Letter Agreement                                   5.09(a)
Laker Prepayment Amount                                            5.09(c)
Lockbox Accounts                                                   2.01(k)
Los Angeles DMA                                                    3.16(a)
Losses                                                             12.02(a)
Market Cable Systems                                               3.16(a)
Other Statement                                                    2.12

                                        6

<PAGE>

Term                                                               Section
----                                                               -------

Other Statement Liabilities                                         2.12
Other Statement Notice of Disagreement                              2.12(b)
Permits                                                             2.01(h)
Programming Statement                                               2.10
Programming Statement Notice of Disagreement                        2.10(e)
Prorated Assumed Liabilities                                        2.09(a)
Prorated Current Purchased Assets                                   2.09(a)
Prorated Programming Assumed Liabilities                            2.10(a)
Prorated Programming Purchased Assets                               2.10(a)
Purchased Assets                                                    2.01
Purchase Price                                                      2.06(a)
Reference Balance Sheet                                             3.11(a)
Reference Financial Statements                                      3.11(a)
Representation Agreement                                            5.14(a)
Representation Services                                             5.14(b)
Representation Services Period                                      5.14(b)
Representation Termination Date                                     5.14(b)
Representative                                                      5.14(a)
Seller                                                              Preamble
Seller Indemnified Parties                                          12.02(a)
Settlement Statement                                                2.09(c)
Settlement Statement Notice of Disagreement                         2.09(e)
Specified Deposits                                                  2.01(n)
Station                                                             Recitals
Termination Date                                                    11.01(b)(i)
Termination Notice Date                                             5.14(b)
Title Commitments                                                   5.03(a)
Title Policy                                                        5.03(a)
Transferred Employees                                               8.01(a)
YBLA                                                                Preamble
Young Entities                                                      Preamble
Young General Warranty Breach                                       12.03(a)(i)
Young FCC Warranty Breach                                           12.03(a)(ii)
Web Sites                                                           5.12
WorldNow Affiliation Agreement                                      2.02(m)

     SECTION 1.03. Terms Generally. (a) Words in the singular shall be held to
include the plural and vice versa and words of one gender shall be held to
include the other genders as the context requires, (b) the terms "hereof,"
"herein," and "herewith" and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole (including the
Disclosure Schedules and exhibits hereto) and not to any particular provision of
this Agreement, and Article, Section, paragraph, Exhibit and Schedule references
are to the Articles, Sections, paragraphs, Exhibits and Schedules to this
Agreement unless otherwise specified, (c) the word "including" and words of
similar import when used in this Agreement means "including, without
limitation," unless otherwise specified, and (d) the word "or" shall not be
exclusive.

                                   ARTICLE II
                                PURCHASE AND SALE

     SECTION 2.01. Purchase and Sale. Except as otherwise provided below, upon
the terms and subject to the conditions of this Agreement, Buyer agrees to
purchase from each Seller and each Seller agrees to sell, convey, transfer,
assign and deliver, or cause to be sold, conveyed, transferred, assigned and
delivered, to Buyer at the Closing, free and clear of all Liens, other than
Permitted Liens, all of such Seller's right, title and interest in, to and under
the assets, contracts, properties and business, of every kind and description,
wherever located, real, personal or mixed, tangible or intangible, owned, held
or used in the conduct of the Business by such Seller as the same shall

                                       7

<PAGE>

exist on the date of this Agreement, including all assets shown on the Reference
Balance Sheet and not disposed of in accordance with Section 5.01(d), and all
assets of the Business thereafter acquired by such Seller, but excluding the
Excluded Assets (the "Purchased Assets"), and including, without limitation, all
right, title and interest of each Seller in, to and under:

           (a) all Real Property;

           (b) all Equipment;

           (c) all rights under all contracts, agreements, leases, licenses,
     commitments, sales and purchase orders and other instruments, whether oral
     or written, relating to the Business, including without limitation the
     items listed on Schedule 3.05 and the Leases (collectively, the
     "Contracts");

           (d) all prepaid expenses and deposits, including but not limited to
     ad valorem taxes, leases and rentals;

           (e) all of such Seller's rights, claims, credits, causes of action or
     rights of set-off against third parties relating to the Purchased Assets,
     including unliquidated rights under manufacturers' and vendors' warranties,
     in each case only to the extent Buyer incurs Losses relating thereto;

           (f) all Intangible Property;

           (g) all internet web sites and related agreements, content and
     databases and domain name registrations, as and to the extent relating to
     the Business, including those set forth on Schedule 2.01(g);

           (h) the FCC Licenses, all transferable municipal, state and federal
     franchises, licenses, permits or other governmental authorization
     affecting, or relating in any way to, the Business, the items listed on
     Schedule 2.01(h) (the "Permits");

           (i) all prepayments under advertising sales contracts for committed
     air time for advertising that has not been aired prior to the Effective
     Time;

           (j) all books, records, files and papers, whether in hard copy or
     computer format, used in the Business, including, without limitation,
     engineering information, sales and promotional literature, manuals and
     data, sales and purchase correspondence, lists of present and former
     suppliers, lists of present and former customers, personnel and employment
     records for Transferred Employees (to the extent permitted by Law), and any
     information relating to any Tax imposed on the Purchased Assets;

           (k) the lock box accounts utilized in connection with Sellers'
     collection of Accounts Receivable (the "Lockbox Accounts");

           (l) all management and other systems (including computers and
     peripheral equipment), databases, computer software, computer disks and
     similar assets, related to the Business and all licenses and rights in
     relation thereto;

           (m) all goodwill associated with the Station, the Business or the
     Purchased Assets;

           (n) the security deposits the applicable Seller has deposited with
     the landlords of the Staple's Center and the Paramount Studio
         lot (the "Specified Deposits");

           (o) (intentionally omitted)

           (p) (intentionally omitted)

           (q) any insurance proceeds payable in accordance with Section 5.07.

                                        8

<PAGE>

     SECTION 2.02. Excluded Assets. Buyer expressly understands and agrees that
the following assets and properties of Sellers (the "Excluded Assets") shall be
excluded from the Purchased Assets:

           (a) all of such Seller's cash and cash equivalents on hand and in
     banks;

           (b) insurance policies relating to the Business and all claims,
     credits, causes of action or rights thereunder;

           (c) all rights to insurance proceeds relating to the Excluded Assets;

           (d) all Accounts Receivable;

           (e) (intentionally omitted);

           (f) intercompany accounts owing by and among, and all agreements
     between, either Seller on the one hand and YBI or any Affiliate of YBI on
     the other hand, other than the Representation Agreement (as defined below)
     and those that are or relate to Contracts listed on Schedule 3.05(a)(xii);

           (g) any assets of any Employee Plan sponsored by either Seller or its
     Affiliates including any amounts due to such Employee Plan from either
     Seller or any of its Affiliates;

           (h) all books, records, files and papers, whether in hard copy or
     computer format, prepared in connection with this Agreement or the
     transactions contemplated hereby and all minute books and corporate records
     of each Seller and its Affiliates;

           (i) all rights of each Seller arising under this Agreement or the
     transactions contemplated hereby;

           (j) any Purchased Asset sold or otherwise disposed of in accordance
     with Section 5.01(d);

           (k) the property and assets described on Schedule 2.02(k);

           (l) any items to be delivered or services to be performed by Fresh
     Bait, Inc. or its Affiliates pursuant to the Settlement Agreement dated
     June 11, 2001 between Fresh Bait, Inc. and the Sellers with respect to Case
     No. BC215016, filed in the Los Angeles Superior Court on August 11, 1999
     (the "Fresh Bait Settlement"); and

           (m) the Affiliation Agreement dated April 1, 2000 between Gannaway
     Web Holdings, LLC d/b/a/ WorldNow and Young Broadcasting Inc. - YBI Group
     Contract, as amended (the "WorldNow Affiliation Agreement").

     SECTION 2.03. Assumed Liabilities. Upon the terms and subject to the
conditions of this Agreement, Buyer agrees, effective at the Effective Time, to
assume the following liabilities (the "Assumed Liabilities"):

           (a) the liabilities and obligations of each Seller under the
     Contracts and Permits arising with respect to the operation of the Station
     on and after the Effective Time, except those Contracts and Permits, if
     any, included in the Excluded Assets;

           (b) any liability or obligation to the extent of the amount of credit
     received by Buyer under Section 2.09 at Closing; and

           (c) the removal and disposal or encapsulation of asbestos in the
     twelve (12) film vault storage closets at 5515 Melrose identified in
     proposal numbers 01-201 and 01-202 issued by Janus Corporation to Seller
     each dated November 30, 2001 (copies of which have been previously
     furnished to Buyer).

                                        9

<PAGE>

     SECTION 2.04. Excluded Liabilities. Notwithstanding any provision in this
Agreement or any other writing to the contrary, Buyer is assuming only the
Assumed Liabilities and is not assuming any other liability or obligation of any
of the Young Entities (or any predecessor of any of the Young Entities or any
prior owner of all or part of any Young Entity's businesses and assets) of
whatever nature, whether presently in existence or arising hereafter. All such
other liabilities and obligations shall be retained by and remain obligations
and liabilities of the applicable Young Entity (all such liabilities and
obligations not being assumed being herein referred to as the "Excluded
Liabilities"), and, notwithstanding anything to the contrary in Section 2.03,
none of the following shall be Assumed Liabilities for the purposes of this
Agreement:

              (a)  any liability or obligation under or with respect to any
     Contract or Permit required by the terms thereof to be discharged on or
     prior to the Effective Time;

              (b)  any liability or obligation for which the applicable Seller
     has already received the partial or full benefit of the asset to which such
     liability or obligation relates, but only to the extent of such benefit
     received;

              (c)  any liability or obligation for borrowed money including
     interest and fees;

              (d)  any liability or obligation relating to or arising out of any
     of the Excluded Assets;

              (e)  any Environmental Liabilities (other than as specifically set
     forth in Section 2.03(c));

              (f)  any liability or obligation relating to vacation, bonuses and
     other employee-related benefits including any Seller stay bonuses pursuant
     to Section 8.07 earned prior to the Closing Date (except as expressly
     provided in writing by the parties);

              (g)  any Tax liability or obligation (except as expressly provided
     in Section 9.02);

              (h)  any liability or obligation relating to or arising out of any
     Employee Plan; and

              (i)  any liability or obligation arising out of or in connection
     with the Fresh Bait Settlement.

     SECTION 2.05. Assignment of Contracts and Rights. Anything in this
Agreement to the contrary notwithstanding, this Agreement shall not constitute
an agreement to assign any Purchased Asset or any claim or right or any benefit
arising thereunder or resulting therefrom if such assignment, without the
consent of a third party thereto, would constitute a breach or other
contravention of such Purchased Asset or in any way adversely affect the rights
of Buyer or the applicable Seller thereunder. Sellers will use their
commercially reasonable best efforts to obtain the consent of the other parties
to any such Purchased Asset or any claim or right or any benefit arising
thereunder for the assignment thereof to Buyer as Buyer may request. If such
consent is not obtained, or if an attempted assignment thereof would be
ineffective or would adversely affect the rights of either Seller thereunder so
that Buyer would not in fact receive all such rights, Sellers and Buyer will
cooperate in a mutually agreeable arrangement under which Buyer would obtain the
benefits and assume the obligations thereunder in accordance with this
Agreement, including sub-contracting, sub-licensing, or sub-leasing to Buyer, or
under which Sellers would enforce for the benefit of Buyer, with Buyer assuming
the applicable Seller's obligations, any and all rights of such Seller against a
third party thereto. Each Seller will promptly pay to Buyer when received all
monies received by such Seller under any Purchased Asset or any claim or right
or any benefit arising thereunder.

     SECTION 2.06. Purchase Price; Allocation of Purchase Price. (a) The
purchase price for the purchase of the Purchased Assets shall be $650 million
(the "Purchase Price"). The Closing Date Cash Amount shall be the Purchase Price
less the sum of the following: (v) the Closing Date Estimated Capital Lease
Obligations (as set forth in a schedule delivered by Sellers to Buyer at least
five (5) Business Days prior to the Closing Date), (w) any portion of the Laker
Prepayment Amount not paid by Sellers prior to the Closing Date, (x), the
Closing Date Vacation Liability Estimated Amount (as set forth in a schedule
delivered by Sellers to Buyer at least five (5) Business Days prior to the
Closing Date), (y) the Closing Date Bonus Liability Estimated Amount (as set
forth in a schedule delivered by Sellers to Buyer at least five (5) Business
Days prior to the Closing Date), and (z) any portion of the A&P Grant not
expended by Sellers pursuant to Section 5.01(q) prior to the Closing Date.

                                       10

<PAGE>

              (b)  The allocation of the Purchase Price plus the adjustments to
such amount prescribed by Sections 2.09, 2.10, 2.11 and 2.12 shall be determined
pursuant to an appraisal report in form and substance satisfactory to Sellers
and Buyer, drafts of which, including the final draft, are to be delivered
simultaneously to Buyer and Sellers (the "Appraisal Report") prepared by Bond &
Pecaro. The cost of the Appraisal Report shall be paid one-half by Buyer and
one-half by Sellers. Buyer and Sellers hereby covenant and agree that the values
assigned to the Purchased Assets in the final Appraisal Report shall be
conclusive and final for all Tax purposes subject to adjustment for any
indemnification payments made pursuant to this Agreement. Buyer and Sellers
further covenant and agree not to take any position on any Tax Return or before
any Governmental Authority charged with the collection of any Taxes or in any
judicial proceeding that is in any way inconsistent with the allocation
determined by the Appraisal Report, except to the extent required by any
Governmental Authority. Buyer and Sellers shall file with their respective
federal income tax returns for the tax year in which the Closing occurs an IRS
Form 8824 (and an IRS Form 8594) in a manner consistent with the Appraisal
Report.

     SECTION 2.07. Collection of Accounts Receivable. (a) At the Closing,
Sellers shall designate Buyer, by means of a mutually acceptable agency
agreement, as their agent solely for purposes of collecting on behalf of Sellers
the Accounts Receivable. Sellers shall deliver to Buyer, on or immediately after
the Closing Date, a complete and detailed statement of the Accounts Receivable.
Buyer shall use commercially reasonable best efforts to collect the Accounts
Receivable during the period (the "Collection Period") beginning at the
Effective Time and ending on the last day of the fourth full calendar month
following the Closing Date consistent with Buyer's practices for collection of
its accounts receivables; provided, however, that such efforts shall not include
hiring attorneys or collection agencies to collect such Accounts Receivable. Any
payment received by Buyer (i) at any time following the Effective Time, (ii)
from a customer of the Station after the Effective Time that was also a customer
of the Station prior to the Effective Time and that is obligated with respect to
any Accounts Receivable and (iii) that is not designated as a payment of a
particular invoice or invoices or as a security deposit or other prepayment,
shall be presumptively applied to the accounts receivable for such customer
outstanding for the longest amount of time and, if such accounts receivable
shall be an Accounts Receivable, remitted to Sellers in accordance with Section
2.07(b); provided further, however, that if, prior to the Effective Time,
Sellers or, after the Effective Time, Sellers or Buyer received or receives a
written notice of dispute from a customer with respect to an Accounts Receivable
that has not been resolved, then Buyer shall apply any payments from such
customer to such customer's oldest, non-disputed accounts receivable, whether or
not an Accounts Receivable. Buyer shall obtain the prior written approval of
Sellers before referring any of the Accounts Receivable to a collection agency
or to an attorney for collection. Except as otherwise provided herein, Buyer
shall incur no liability to Sellers for any collected or uncollected Accounts
Receivable. During the Collection Period, neither Seller nor any of its agents,
without the consent of Buyer, shall make any direct solicitation of any
customers owing the Accounts Receivable for collection purposes.

              (b)  On or before the twentieth day following the end of each
calendar month in the Collection Period, Buyer shall deposit into an account
identified by Sellers at the time of Closing the amounts collected during the
preceding month of the Collection Period with respect to the Accounts
Receivable. Buyer shall furnish Sellers with a list of the amounts collected
during such calendar month and in any prior calendar months with respect to the
Accounts Receivable and a schedule of the amount remaining outstanding under
each particular account. Sellers shall be entitled during the sixty-day period
following the Collection Period to inspect and/or audit the records maintained
by Buyer pursuant to this Section 2.07, upon reasonable advance notice.

              (c)  Following the expiration of the Collection Period, Buyer
shall have no further obligations under this Section 2.07, except that Buyer
shall immediately pay over to Sellers any amounts subsequently paid to it with
respect to any Accounts Receivable. Following the Collection Period, after
consultation with Buyer, Sellers may pursue collections of all the Accounts
Receivable, and Buyer shall at Sellers' expense deliver to Sellers all files,
records, notes and any other materials relating to the Accounts Receivable and
shall otherwise cooperate with Sellers for the purpose of collecting any
outstanding Accounts Receivable.

     SECTION 2.08. Closing. The closing (the "Closing") of the sale and purchase
of the Purchased Assets and the assumption of the Assumed Liabilities hereunder
shall take place at 1:00 P.M. (New York City time) as soon as possible, but in
no event later than five Business Days, following the satisfaction or waiver of
the conditions to the obligations of the parties set forth in Article X, at the
offices of Buyer, 1515 Broadway, New York, New York, or at such other time or
place as Sellers and Buyer may mutually agree upon in writing (the day on which
the Closing takes place being the "Closing Date"). At the Closing:

                                       11

<PAGE>

              (a)  Buyer shall deliver to Sellers the Closing Date Cash Amount
     in immediately available funds by wire transfer to one or more accounts
     designated by Sellers, by notice to Buyer, received no later than one (1)
     Business Day prior to the Closing Date.

              (b)  Sellers and Buyer shall enter into and deliver such deeds,
     bills of sale, instruments of assumption, endorsements, consents,
     assignments, releases of Liens other than Permitted Liens and other good
     and sufficient instruments of conveyance and assignment as the parties and
     their respective counsel shall deem reasonably necessary to vest in Buyer
     all right, title and interest in, to and under the Purchased Assets as
     provided under this Agreement. Buyer shall have the right to designate an
     Affiliate of Buyer or any other person described in Section 13.06 to accept
     title to any Purchased Asset.

              (c)  Sellers shall deliver to Buyer valid signature cards for each
     Lockbox Account and such other documents reasonably requested by Buyer in
     order to transfer ownership and control of the Lockbox Accounts to Buyer.

     SECTION 2.09. General Proration. (a) All Purchased Assets that would be
classified as a current asset in accordance with GAAP and all Assumed
Liabilities (other than Assumed Liabilities and Purchased Assets that are the
subject of Section 2.10 and 5.07) shall be prorated between Buyer on the one
hand and Sellers on the other hand as of 12:01 A.M. local California time, on
the Closing Date (the "Effective Time"), including by taking into account the
elapsed time or consumption of an asset during the month in which the Effective
Time occurs (respectively, the "Prorated Assumed Liabilities" and the "Prorated
Current Purchased Assets"). Such Prorated Current Purchased Assets and Prorated
Assumed Liabilities relating to the period prior to the Effective Time shall be
for the account of Sellers and those relating to the period on and after the
Effective Time for the account of Buyer and shall be prorated accordingly. In
accordance with this Section 2.09: (A) Buyer shall be required to pay to Sellers
the amount of any Prorated Current Purchased Asset, previously paid for by
either Seller, to the extent Buyer will receive a current benefit on and after
the Effective Time, provided that such amount should not have been recognized as
an expense in accordance with GAAP prior to the Effective Time; and (B) Sellers
shall be required to pay to Buyer the amount of any Prorated Assumed Liabilities
to the extent they arise with respect to the operation of the Station prior to
the Effective Time.

              (b)  Such prorations shall include all ad valorem and other
property taxes, utility expenses, liabilities and obligations under Contracts,
rents and similar prepaid and deferred items and all other expenses and
obligations, such as deferred revenue and prepayments, attributable to the
ownership and operation of the Station that straddle the period before and after
the Effective Time. If such amounts were prepaid by Seller prior to the
Effective Time and Buyer will receive a benefit after the Effective Time, then
Seller shall receive a credit for such amounts. If Seller was entitled to
receive a benefit prior to the Effective Time and such amounts will be paid by
Buyer after the Effective Time, Buyer will receive a credit for such amounts. To
the extent not known, real estate and personal property taxes shall be
apportioned on the basis of Taxes assessed for the preceding year, with a
reapportionment as soon as the new tax rate and valuation can be ascertained
even if such is ascertained after the Final Settlement Statement is so
determined.

              (c)  Within sixty (60) days after the Closing Date, Buyer shall
prepare and deliver to Sellers a proposed pro rata adjustment of assets and
liabilities in the manner described in Sections 2.09(a) and 2.09(b) as the case
may be, for the Station, as of the Effective Time (the "Settlement Statement")
setting forth the Prorated Assumed Liabilities and the Prorated Current
Purchased Assets together with a schedule setting forth, in reasonable detail,
the components thereof.

              (d)  During the 30-day period following the receipt of the
Settlement Statement (A) Sellers and their independent auditors, if any, shall
be permitted to review and make copies reasonably required of (i) the financial
statements of Buyer relating to the Settlement Statement (ii) the working papers
of Buyer and its independent auditors, if any, relating to the Settlement
Statement (iii) the books and records of Buyer relating to the Settlement
Statement and (iv) any supporting schedules, analyses and other documentation
relating to the Settlement Statement and (B) Buyer shall provide reasonable
access to such employees of Sellers and their independent auditors, if any, as
Sellers reasonably believe is necessary or desirable in connection with their
review of the Settlement Statement. Each of the parties agrees that for purposes
of Sections 2.09, 2.10, 2.11 and 2.12, any

                                       12

<PAGE>

reference to such party's independent auditors shall mean, as to such party, one
and the same firm to be used for the review, if any, of each Adjustment
Statement.

              (e)  The Settlement Statement shall become final and binding (the
"Final Settlement Statement") upon the parties on the forty-fifth (45th) day
following delivery thereof, unless Sellers give written notice of their
disagreement with the Settlement Statement (the "Settlement Statement Notice of
Disagreement") to Buyer prior to such date. The Settlement Statement Notice of
Disagreement shall specify in reasonable detail the nature of any disagreement
so asserted. If a Settlement Statement Notice of Disagreement is given to Buyer
in the period specified, then the Final Settlement Statement (as revised in
accordance with clause (A) or (B) below) shall become final and binding upon the
parties on the earlier of (A) the date Buyer and Sellers resolve in writing any
differences they have with respect to the matters specified in the Settlement
Statement Notice of Disagreement or (B) the date any disputed matters are
finally resolved in writing by the Accounting Firm.

              (f)  Within 10 Business Days after the Settlement Statement
becomes final and binding upon the parties, (A) Buyer shall be required to pay
to the Young Entities the amount, if any, by which (w) the Prorated Current
Purchased Assets exceed the Prorated Assumed Liabilities or (B) Sellers shall be
required to pay to Buyer the amount, if any, by which (y) the Prorated Assumed
Liabilities exceed the Prorated Current Purchased Assets. All payments made
pursuant to this Section 2.09(f) must be made via wire transfer in immediately
available funds to an account designated by the recipient party, together with
interest thereon at the prime rate (as reported by the Wall Street Journal or,
if not reported thereby, by another authoritative source) as in effect from time
to time from the Effective Time to the date of actual payment.

              (g)  Notwithstanding the foregoing, in the event that Sellers
deliver a Settlement Statement Notice of Disagreement and either Sellers on the
one hand or Buyer on the other hand shall be required to make a payment of any
undisputed amount to the other regardless of the resolution of the items
contained in the Settlement Statement Notice of Disagreement, then Sellers or
Buyer, as applicable, shall within 10 Business Days of the receipt of the
Settlement Statement Notice of Disagreement make payment to the other by wire
transfer in immediately available funds of such undisputed amount owed by
Sellers or Buyer to the other, as the case may be, pending resolution of the
Settlement Statement Notice of Disagreement together with interest thereon,
calculated as described above.

              (h)  During the 30-day period following the delivery of a
Settlement Statement Notice of Disagreement to Buyer that complies with the
preceding paragraphs, Buyer and Sellers shall seek in good faith to resolve in
writing any differences they may have with respect to the matters specified in
the Settlement Statement Notice of Disagreement. During such period: (A) Buyer
and its independent auditors, if any, at Buyer's sole cost and expense, shall
be, and Sellers and their independent auditors, if any, at Sellers' sole cost
and expense, shall be, in each case permitted to review and make copies
reasonably required of: (i) the financial statements of the Sellers, in the case
of Buyer, and Buyer, in the case of Sellers, relating to the Settlement
Statement Notice of Disagreement; (ii) the working papers of the Sellers, in the
case of Buyer, and Buyer, in the case of Sellers, and such other party's
auditors, if any, relating to the Settlement Statement Notice of Disagreement;
(iii) the books and records of the Sellers, in the case of Buyer, and Buyer, in
the case of Sellers, relating to the Settlement Statement Notice of
Disagreement; and (iv) any supporting schedules, analyses and documentation
relating to the Settlement Statement Notice of Disagreement; and (B) Sellers, in
the case of Buyer, and Buyer, in the case of Sellers, shall provide reasonable
access, upon reasonable advance notice and during normal business hours, to such
employees of such other party and such other party's independent auditors, if
any, as such first party reasonably believes is necessary or desirable in
connection with its review of the Settlement Statement Notice of Disagreement.

              (i)  If, at the end of such 30-day period, Buyer and Sellers have
not so resolved such differences, Buyer and Sellers shall submit to the
Accounting Firm for review and resolution any and all matters that remain in
dispute and that were properly included in the Settlement Statement Notice of
Disagreement. Within sixty (60) days after selection of the Accounting Firm,
Buyer and Sellers shall submit their respective positions to the Accounting
Firm, in writing, together with any other materials relied upon in support of
their respective positions. Buyer and Sellers shall use reasonable efforts to
cause the Accounting Firm to render a decision resolving the matters in dispute
within thirty (30) days following the submission of such materials to the
Accounting Firm. Buyer and Sellers agree that judgment may be entered upon the
determination of the Accounting Firm in any court having jurisdiction over the
party against which such determination is to be enforced. Except as specified in
the following

                                       13

<PAGE>

sentence, the cost of any arbitration (including the fees and expenses of the
Accounting Firm) pursuant to this Section 2.09 shall be borne equally by Buyer
on the one hand and Sellers on the other hand. The fees and expenses (if any) of
Buyer's independent auditors and attorneys incurred in connection with the
review of the Settlement Statement Notice of Disagreement shall be borne by
Buyer, and the fees and expenses (if any) of Sellers' independent auditors and
attorneys incurred in connection with their review of the Settlement Statement
shall be borne by Sellers.

     SECTION 2.10. Programming Proration. Within sixty (60) days after the
Closing Date, Buyer shall prepare and deliver to Sellers a proposed pro rata
adjustment of programming assets and liabilities in the manner described below
as the case may be, for the Station, as of the Effective Time (the "Programming
Statement") setting forth a balance sheet prepared in accordance with GAAP
itemizing such assets and liabilities with respect to all programs and shows the
subject of Program Rights as of the Effective Time.

              (a)  All Assumed Liabilities and Purchased Assets that relate to
     Program Rights (other than those referred to in Section 2.10(c)) in
     accordance with GAAP shall be prorated between Buyer on the one hand and
     Sellers on the other hand as of the Closing Date, including by taking into
     account the elapsed time or consumption of an asset during the month in
     which the Effective Time occurs (respectively, the "Prorated Programming
     Assumed Liabilities" and the "Prorated Programming Purchased Assets"). Such
     Prorated Programming Purchased Assets and Prorated Programming Assumed
     Liabilities relating to the period prior to the Effective Time shall be for
     the account of Sellers and those relating to the period on and after the
     Effective Time for the account of Buyer and shall be prorated accordingly.
     In accordance with Section 2.10(f) Sellers shall be required to pay to
     Buyer the amount of any Prorated Programming Assumed Liabilities assumed by
     Buyer that was incurred prior to the Effective Time and that does not arise
     or relate to the period on and after the Effective Time to the extent such
     amount exceeds the Prorated Programming Purchased Assets, measured and
     payable on a program by program basis.

              (b)  The Programming Statement shall include all program assets
     and liabilities and obligations attributable to Program Rights that
     straddle the period before and after the Effective Time. If the Seller
     received a benefit prior to the Effective Time and such amounts will be
     paid by Buyer after the Effective Time, Buyer will receive a credit for
     such amounts.

              (c)  There shall be no asset for Program Rights included in the
     Programming Statement under the film or programming license agreements
     relating to the Laker Prepayment Amount and the $30,000,000 prepayment
     amount made pursuant to the Laker Broadcast Letter Agreement by and between
     The Los Angeles Lakers, Inc. and Young Broadcasting of Los Angeles, Inc. on
     behalf of KCAL-TV dated June 10, 1998.

              (d)  During the 30-day period following the receipt of the
     Programming Statement (A) Sellers and their independent auditors, if any,
     shall be permitted to review and make copies reasonably required of (i) the
     financial statements of Buyer relating to the Programming Statement (ii)
     the working papers of Buyer and its independent auditors, if any, relating
     to the Programming Statement (iii) the books and records of Buyer relating
     to the Programming Statement and (iv) any supporting schedules, analyses
     and other documentation relating to the Programming Statement and (B) Buyer
     shall provide reasonable access to such employees of Sellers and their
     independent auditors, if any, as Sellers reasonably believe is necessary or
     desirable in connection with their review of the Programming Statement.

              (e)  The Programming Statement shall become final and binding (the
     "Final Programming Statement") upon the parties on the forty-fifth (45th)
     day following delivery thereof, unless Sellers give written notice of their
     disagreement with the Programming Statement (the "Programming Statement
     Notice of Disagreement") to Buyer prior to such date. The Programming
     Statement Notice of Disagreement shall specify in reasonable detail the
     nature of any disagreement so asserted. If a Programming Statement Notice
     of Disagreement is given to Buyer in the period specified, then the Final
     Programming Statement (as revised in accordance with clause (A) or (B)
     below) shall become final and binding upon the parties on the earlier of:
     (A) the date Buyer and Sellers resolve in writing any differences they have
     with respect to the matters specified in the Programming Statement Notice
     of Disagreement or (B) the date any disputed matters are finally resolved
     in writing by the Accounting Firm.

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<PAGE>

              (f)  Within 10 Business Days after the Programming Statement
     becomes final and binding upon the parties, Sellers shall be required to
     pay to Buyer an amount, if any, equal to the aggregate sum by which the
     Prorated Programming Assumed Liabilities exceed the Prorated Programming
     Purchased Assets, taking into account only those individual Prorated
     Programming Purchased Assets as to which the Prorated Programming Assumed
     Liabilities exceed the Prorated Programming Purchased Assets. All payments
     made pursuant to this Section 2.10(f) must be made via wire transfer in
     immediately available funds to an account designated by the Buyer, together
     with interest thereon at the prime rate (as reported by the Wall Street
     Journal or, if not reported thereby, by another authoritative source) as in
     effect from time to time from the Effective Time to the date of actual
     payment.

              (g)  Notwithstanding the foregoing, in the event that Sellers
     deliver a Programming Statement Notice of Disagreement and Sellers shall be
     required to make a payment of any undisputed amount to Buyer regardless of
     the resolution of the items contained in the Programming Statement Notice
     of Disagreement, then Sellers shall within 10 Business Days of the receipt
     of the Programming Statement Notice of Disagreement make payment to Buyer
     by wire transfer in immediately available funds of such undisputed amount
     owed by Sellers, pending resolution of the Programming Statement Notice of
     Disagreement together with interest thereon, calculated as described above.

              (h)  During the 30-day period following the delivery of a
     Programming Statement Notice of Disagreement to Buyer that complies with
     the preceding paragraphs, Buyer and Sellers shall seek in good faith to
     resolve in writing any differences they may have with respect to the
     matters specified in the Programming Statement Notice of Disagreement.
     During such period: (A) Buyer and its independent auditors, if any, at
     Buyer's sole cost and expense, shall be, and Sellers and their independent
     auditors, if any, at Sellers' sole cost and expense, shall be, in each case
     permitted to review and make copies reasonably required of: (i) the
     financial statements of the Sellers, in the case of Buyer, and Buyer, in
     the case of Sellers, relating to the Programming Statement Notice of
     Disagreement; (ii) the working papers of the Sellers, in the case of Buyer,
     and Buyer, in the case of Sellers, and such other party's auditors, if any,
     relating to the Programming Statement Notice of Disagreement; (iii) the
     books and records of the Sellers, in the case of Buyer, and Buyer, in the
     case of Sellers, relating to the Programming Statement Notice of
     Disagreement; and (iv) any supporting schedules, analyses and documentation
     relating to the Programming Statement Notice of Disagreement; and (B)
     Sellers, in the case of Buyer, and Buyer, in the case of Sellers, shall
     provide reasonable access, upon reasonable advance notice and during normal
     business hours, to such employees of such other party and such other
     party's independent auditors, if any, as such first party reasonably
     believes is necessary or desirable in connection with its review of the
     Programming Statement Notice of Disagreement.

              (i)  If, at the end of such 30-day period, Buyer and Sellers have
     not so resolved such differences, Buyer and Sellers shall submit to the
     Accounting Firm for review and resolution any and all matters that remain
     in dispute and that were properly included in the Programming Statement
     Notice of Disagreement. Within sixty (60) days after selection of the
     Accounting Firm, Buyer and Sellers shall submit their respective positions
     to the Accounting Firm, in writing, together with any other materials
     relied upon in support of their respective positions. Buyer and Sellers
     shall use reasonable efforts to cause the Accounting Firm to render a
     decision resolving the matters in dispute within thirty (30) days following
     the submission of such materials to the Accounting Firm. Buyer and Sellers
     agree that judgment may be entered upon the determination of the Accounting
     Firm in any court having jurisdiction over the party against which such
     determination is to be enforced. Except as specified in the following
     sentence, the cost of any arbitration (including the fees and expenses of
     the Accounting Firm) pursuant to this Section 2.10 shall be borne equally
     by Buyer on the one hand and Sellers on the other hand. The fees and
     expenses (if any) of Buyer's independent auditors and attorneys incurred in
     connection with the review of the Programming Statement Notice of
     Disagreement shall be borne by Buyer, and the fees and expenses (if any) of
     Sellers' independent auditors and attorneys incurred in connection with
     their review of the Programming Statement shall be borne by Sellers.

     SECTION 2.11. Capital Lease Obligation Proration. Closing Date Estimated
Capital Lease Obligations shall be the Capital Lease Obligations outstanding as
of the last day in the latest full month preceding the Closing Date. Within
sixty (60) days after the Closing Date, Buyer shall prepare and deliver to
Sellers a

                                       15

<PAGE>

statement setting forth the Capital Lease Obligations outstanding as of the
Effective Time (the "Capital Lease Statement"). The Capital Lease Statement
shall set forth the Capital Lease Obligation by respective lease.

               (a) During the 30-day period following the receipt of the Capital
     Lease Statement (A) Sellers and their independent auditors, if any, shall
     be permitted to review and make copies reasonably required of (i) the
     financial statements of Buyer relating to the Capital Lease Statement (ii)
     the working papers of Buyer and its independent auditors, if any, relating
     to the Capital Lease Statement (iii) the books and records of Buyer
     relating to the Capital Lease Statement and (iv) any supporting schedules,
     analyses and other documentation relating to the Capital Lease Statement
     and (B) Buyer shall provide reasonable access to such employees of Sellers
     and their independent auditors, if any, as Sellers reasonably believe is
     necessary or desirable in connection with their review of the Capital Lease
     Statement.

               (b) The Capital Lease Statement shall become final and binding
     (the "Final Capital Lease Statement") upon the parties on the forty-fifth
     (45th) day following delivery thereof, unless Sellers give written notice
     of their disagreement with the Capital Lease Statement (the "Capital Lease
     Statement Notice of Disagreement") to Buyer prior to such date. The Capital
     Lease Statement Notice of Disagreement shall specify in reasonable detail
     the nature of any disagreement so asserted. If a Capital Lease Statement
     Notice of Disagreement is given to Buyer in the period specified, then the
     Final Capital Lease Statement (as revised in accordance with clause (A) or
     (B) below) shall become final and binding upon the parties on the earlier
     of: (A) the date Buyer and Sellers resolve in writing any differences they
     have with respect to the matters specified in the Capital Lease Statement
     Notice of Disagreement or (B) the date any disputed matters are finally
     resolved in writing by the Accounting Firm.

               (c) Within 10 Business Days after the Capital Lease Statement
     becomes final and binding upon the parties, (A) Buyer shall be required to
     pay to the Young Entities the amount, if any, by which (w) Closing Date
     Estimated Capital Lease Obligations exceeds the Capital Lease Obligations
     as set forth per the Capital Lease Statement, and (B) Sellers shall be
     required to pay to Buyer the amount, if any, by which (y) Capital Lease
     Obligations as set forth per the Capital Lease Statement exceeds the
     Closing Date Estimated Capital Lease Obligations. All payments made
     pursuant to this Section 2.11(c) must be made via wire transfer in
     immediately available funds to an account designated by the recipient
     party, together with interest thereon at the prime rate (as reported by the
     Wall Street Journal or, if not reported thereby, by another authoritative
     source) as in effect from time to time from the Effective Time to the date
     of actual payment.

               (d) Notwithstanding the foregoing, in the event that Sellers
     deliver a Capital Lease Statement Notice of Disagreement and either Sellers
     on the one hand or Buyer on the other hand shall be required to make a
     payment of any undisputed amount to the other regardless of the resolution
     of the items contained in the Capital Lease Statement Notice of
     Disagreement, then Sellers or Buyer, as applicable, shall within 10
     Business Days of the receipt of the Capital Lease Statement Notice of
     Disagreement make payment to the other by wire transfer in immediately
     available funds of such undisputed amount owed by Sellers or Buyer to the
     other, as the case may be, pending resolution of the Capital Lease
     Statement Notice of Disagreement together with interest thereon, calculated
     as described above.

               (e) During the 30-day period following the delivery of a Capital
     Lease Statement Notice of Disagreement to Buyer that complies with the
     preceding paragraphs, Buyer and Sellers shall seek in good faith to resolve
     in writing any differences they may have with respect to the matters
     specified in the Capital Lease Statement Notice of Disagreement. During
     such period: (A) Buyer and its independent auditors, if any, at Buyer's
     sole cost and expense, shall be, and Sellers and their independent
     auditors, if any, at Sellers' sole cost and expense, shall be, in each case
     permitted to review and make copies reasonably required of: (i) the
     financial statements of the Sellers, in the case of Buyer, and Buyer, in
     the case of Sellers, relating to the Capital Lease Statement Notice of
     Disagreement; (ii) the working papers of the Sellers, in the case of Buyer,
     and Buyer, in the case of Sellers, and such other party's auditors, if any,
     relating to the Capital Lease Statement Notice of Disagreement; (iii) the
     books and records of the Sellers, in the case of Buyer, and Buyer, in the
     case of Sellers, relating to the Capital Lease Statement Notice of
     Disagreement; and (iv) any supporting schedules, analyses and documentation
     relating to the Capital Lease Statement Notice of Disagreement; and (B)
     Sellers, in the case of Buyer, and Buyer, in the case of Sellers, shall
     provide

                                       16

<PAGE>

     reasonable access, upon reasonable advance notice and during normal
     business hours, to such employees of such other party and such other
     party's independent auditors, if any, as such first party reasonably
     believes is necessary or desirable in connection with its review of the
     Capital Lease Statement Notice of Disagreement.

               (f) If, at the end of such 30-day period, Buyer and Sellers have
     not so resolved such differences, Buyer and Sellers shall submit to the
     Accounting Firm for review and resolution any and all matters that remain
     in dispute and that were properly included in the Capital Lease Statement
     Notice of Disagreement. Within sixty (60) days after selection of the
     Accounting Firm, Buyer and Sellers shall submit their respective positions
     to the Accounting Firm, in writing, together with any other materials
     relied upon in support of their respective positions. Buyer and Sellers
     shall use reasonable efforts to cause the Accounting Firm to render a
     decision resolving the matters in dispute within thirty (30) days following
     the submission of such materials to the Accounting Firm. Buyer and Sellers
     agree that judgment may be entered upon the determination of the Accounting
     Firm in any court having jurisdiction over the party against which such
     determination is to be enforced. Except as specified in the following
     sentence, the cost of any arbitration (including the fees and expenses of
     the Accounting Firm) pursuant to this Section 2.11 shall be borne equally
     by Buyer on the one hand and Sellers on the other hand. The fees and
     expenses (if any) of Buyer's independent auditors and attorneys incurred in
     connection with the review of the Capital Lease Statement Notice of
     Disagreement shall be borne by Buyer, and the fees and expenses (if any) of
     Sellers' independent auditors and attorneys incurred in connection with
     their review of the Capital Lease Statement shall be borne by Sellers.

     SECTION 2.12. The Other Proration . Closing Date Vacation Liability
Estimated Amount and the Closing Date Bonus Liability Estimated Amount shall be
the vacation and bonus amounts earned by employees of the Station as of the last
day in the latest full month preceding the Closing Date, respectively. Within
sixty (60) days after the Closing Date, Buyer shall prepare and deliver to
Sellers a statement (the "Other Statement") prepared in accordance with GAAP
setting forth (A) the liabilities for vacation and bonus liabilities earned by
the employees of the Station as of the Effective Time and (B) the adjustment, if
any, to the A&P Grant amount for any difference between the amount per Section
2.06(a) for such amount and the actual A&P Grant Amount (the "Other Statement
Liabilities") together with reasonable itemization of all amounts.

               (a) During the 30-day period following the receipt of the Other
     Statement (A) Sellers and their independent auditors, if any, shall be
     permitted to review and make copies reasonably required of (i) the
     financial statements of Buyer relating to the Other Statement (ii) the
     working papers of Buyer and its independent auditors, if any, relating to
     the Other Statement (iii) the books and records of Buyer relating to the
     Other Statement and (iv) any supporting schedules, analyses and other
     documentation relating to the Other Statement and (B) Buyer shall provide
     reasonable access to such employees of Sellers and their independent
     auditors, if any, as Sellers reasonably believe is necessary or desirable
     in connection with their review of the Other Statement.

               (b) The Other Statement shall become final and binding (the
     "Final Other Statement") upon the parties on the forty-fifth (45th) day
     following delivery thereof, unless Sellers give written notice of their
     disagreement with the Other Statement (the "Other Statement Notice of
     Disagreement") to Buyer prior to such date. The Other Statement Notice of
     Disagreement shall specify in reasonable detail the nature of any
     disagreement so asserted. If an Other Statement Notice of Disagreement is
     given to Buyer in the period specified, then the Final Other Statement (as
     revised in accordance with clause (A) or (B) below) shall become final and
     binding upon the parties on the earlier of (A) the date Buyer and Sellers
     resolve in writing any differences they have with respect to the matters
     specified in the Other Statement Notice of Disagreement or (B) the date any
     disputed matters are finally resolved in writing by the Accounting Firm.

               (c) Within 10 Business Days after the Other Statement becomes
     final and binding upon the parties, (A) Buyer shall be required to pay to
     the Young Entities the amount, if any, by which (w) the sum of the Closing
     Date Vacation Liability Estimated Amount and the Closing Date Bonus
     Liability Estimated Amount exceeds the Other Statement Liabilities, and (B)
     Sellers shall be required to pay to Buyer the amount, if any, by which (y)
     Other Statement Liabilities exceed the sum of the Closing Date Vacation
     Liability Estimated Amount and the Closing Date Bonus Liability Estimated
     Amount. All payments made

                                       17

<PAGE>

     pursuant to this Section 2.12(c) must be made via wire transfer in
     immediately available funds to an account designated by the recipient
     party, together with interest thereon at the prime rate (as reported by the
     Wall Street Journal or, if not reported thereby, by another authoritative
     source) as in effect from time to time from the Effective Time to the date
     of actual payment.

               (d) Notwithstanding the foregoing, in the event that Sellers
     deliver an Other Statement Notice of Disagreement and either Sellers on the
     one hand or Buyer on the other hand shall be required to make a payment of
     any undisputed amount to the other regardless of the resolution of the
     items contained in the Other Statement Notice of Disagreement, then Sellers
     or Buyer, as applicable, shall within 10 Business Days of the receipt of
     the Other Statement Notice of Disagreement make payment to the other by
     wire transfer in immediately available funds of such undisputed amount owed
     by Sellers or Buyer to the other, as the case may be, pending resolution of
     the Other Statement Notice of Disagreement together with interest thereon,
     calculated as described above.

               (e) During the 30-day period following the delivery of an Other
     Statement Notice of Disagreement to Buyer that complies with the preceding
     paragraphs, Buyer and Sellers shall seek in good faith to resolve in
     writing any differences they may have with respect to the matters specified
     in the Other Statement Notice of Disagreement. During such period: (A)
     Buyer and its independent auditors, if any, at Buyer's sole cost and
     expense, shall be, and Sellers and their independent auditors, if any, at
     Sellers' sole cost and expense, shall be, in each case permitted to review
     and make copies reasonably required of: (i) the financial statements of the
     Sellers, in the case of Buyer, and Buyer, in the case of Sellers, relating
     to the Other Statement Notice of Disagreement; (ii) the working papers of
     the Sellers, in the case of Buyer, and Buyer, in the case of Sellers, and
     such other party's auditors, if any, relating to the Other Statement Notice
     of Disagreement; (iii) the books and records of the Sellers, in the case of
     Buyer, and Buyer, in the case of Sellers, relating to the Other Statement
     Notice of Disagreement; and (iv) any supporting schedules, analyses and
     documentation relating to the Other Statement Notice of Disagreement; and
     (B) Sellers, in the case of Buyer, and Buyer, in the case of Sellers, shall
     provide reasonable access, upon reasonable advance notice and during normal
     business hours, to such employees of such other party and such other
     party's independent auditors, if any, as such first party reasonably
     believes is necessary or desirable in connection with its review of the
     Other Statement Notice of Disagreement.

               (f) If, at the end of such 30-day period, Buyer and Sellers have
     not so resolved such differences, Buyer and Sellers shall submit to the
     Accounting Firm for review and resolution any and all matters that remain
     in dispute and that were properly included in the Other Statement Notice of
     Disagreement. Within sixty (60) days after selection of the Accounting
     Firm, Buyer and Sellers shall submit their respective positions to the
     Accounting Firm, in writing, together with any other materials relied upon
     in support of their respective positions. Buyer and Sellers shall use
     reasonable efforts to cause the Accounting Firm to render a decision
     resolving the matters in dispute within thirty (30) days following the
     submission of such materials to the Accounting Firm. Buyer and Sellers
     agree that judgment may be entered upon the determination of the Accounting
     Firm in any court having jurisdiction over the party against which such
     determination is to be enforced. Except as specified in the following
     sentence, the cost of any arbitration (including the fees and expenses of
     the Accounting Firm) pursuant to this Section 2.12 shall be borne equally
     by Buyer on the one hand and Sellers on the other hand. The fees and
     expenses (if any) of Buyer's independent auditors and attorneys incurred in
     connection with the review of the Other Statement Notice of Disagreement
     shall be borne by Buyer, and the fees and expenses (if any) of Sellers
     independent auditors and attorneys incurred in connection with their review
     of the Other Statement shall be borne by Sellers.

                                  ARTICLE III

              REPRESENTATIONS AND WARRANTIES OF THE YOUNG ENTITIES

     As to Sections 3.01, 3.02, 3.03, 3.04 and 3.20, the Young Entities jointly
and severally represent and warrant to Buyer, and as to the remaining Sections,
Sellers jointly and severally represent and warrant to Buyer, in each case as
follows:

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<PAGE>

     SECTION 3.01. Corporate Existence and Power. Each of the Young Entities is
a corporation duly incorporated, validly existing and in good standing under the
laws of the state of its incorporation and has all corporate powers and all
governmental licenses, authorizations, permits, consents and approvals required
to carry on its business as now conducted. Each of the Young Entities is duly
qualified to do business as a foreign corporation and is in good standing in
each jurisdiction where such qualification is necessary, except for those
jurisdictions where failure to be so qualified could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect. Each of
the Young Entities has heretofore delivered to Buyer true and complete copies of
the certificate of incorporation and bylaws of such Young Entity as currently in
effect.

     SECTION 3.02. Corporate Authorization. (a) The execution and delivery of
this Agreement by each Young Entity and each Ancillary Agreement to which such
Young Entity will be a party, the performance by such Young Entity of its
obligations hereunder and thereunder and the consummation by such Young Entity
of the transactions contemplated hereby and thereby are within such Young
Entity's corporate powers and have been duly authorized by all requisite
corporate action on the part of such Young Entity.

               (b) This Agreement has been, and at the Closing each Ancillary
Agreement will be, duly executed and delivered by each Young Entity. This
Agreement (assuming due authorization, execution and delivery by Buyer)
constitutes, and each Ancillary Agreement to which such Young Entity will be a
party will constitute when executed and delivered by each Young Entity, the
legal, valid and binding obligation of such Young Entity, enforceable against
such Young Entity in accordance with its terms.

     SECTION 3.03. Governmental Authorization. The execution, delivery and
performance by each Young Entity of this Agreement and each Ancillary Agreement
to which such Young Entity will be a party and the consummation of the
transactions contemplated hereby and thereby require no action by or in respect
of, or filing with or notification to, any Governmental Authority other than (a)
as described in Schedule 3.03, (b) compliance with any applicable requirements
of the HSR Act, (c) the FCC, and (d) any such action by or in respect of or
filing with any Governmental Authority as to which the failure to take, make or
obtain could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

     SECTION 3.04. Noncontravention. Except as set forth in Schedule 3.04, the
execution, delivery and performance of this Agreement by each Young Entity and
each Ancillary Agreement to which such Young Entity will be a party and the
consummation of the transactions contemplated hereby and thereby do not and will
not (a) violate or conflict with the certificate of incorporation or by-laws of
such Young Entity, (b) assuming compliance with the matters referred to in
Section 3.03, conflict with or violate any Law or Governmental Order applicable
to such Young Entity, (c) require any consent or other action by or notification
to any Person under, constitute a default under, or give to any Person any
rights of termination, amendment, acceleration or cancellation of any right or
obligation of such Young Entity or to a loss of any benefit relating to the
Business to which such Young Entity is entitled under, any provision of any
note, bond, mortgage, indenture, contract, agreement, lease, license, permit,
franchise or other agreement or instrument to which such Young Entity is a party
or by which any of its or their assets is or may be bound or (d) result in the
creation or imposition of any Lien on any asset of the Young Entities, except
for Permitted Liens, except, in the cases of clauses (b), (c) and (d), for any
such violations, consents, actions, defaults, rights or losses as could not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

     SECTION 3.05. Contracts.

               (a) As of the date of this Agreement, the Contracts listed on
Schedule 3.05(a) constitute all of the Contracts with third parties relating to
the Business:

                   (i)  for the sale of broadcast time for advertising or other
               purposes for cash that was not made in the ordinary course of
               business consistent with past practices;

                   (ii) with a term of more than six (6) months from the date of
               this Agreement and that involve payments or receipts over the
               remaining term of such Contract of more than $25,000 or (B) that
               involve payments or receipts over the remaining term of such
               Contract of more than $750,000 with respect to any single
               agreement or group of related agreements;

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<PAGE>

                   (iii)  involving the purchase or sale of Real Property;

                   (iv) relating to the acquisition or disposition of any
               business (whether by merger, sale of stock, sale of assets or
               otherwise);

                   (v)    involving construction, architecture, engineering or
               other agreements relating to uncompleted construction projects,
               in each case that involve payments in excess of $250,000;

                   (vi)   all Capital Lease Obligations;

                   (vii)  under which either Seller has, directly or indirectly
               made any loan, extension of credit (other than in the ordinary
               course of business consistent with past practices) or capital
               contribution to, or investment in, any third party;

                   (viii) for any mortgage, pledge or security agreement, deed
               of trust or other instrument granting a Lien (other than
               Permitted Liens) upon any property of the Station, in each case
               that may bind Buyer or any of its Affiliates upon or as a result
               of the consummation of the transactions contemplated by this
               Agreement;

                   (ix)   containing a guarantee or indemnification by the
               Station, in each case that may bind Buyer or any of its
               Affiliates upon or as a result of the consummation of the
               transactions contemplated by this Agreement;

                   (x)    containing any material noncompetition or other
               business limitation restrictions binding on (A) the Station or
               its employees or consultants or (B) any Affiliate of the Station,
               in each case that may bind Buyer or any of its Affiliates upon or
               as a result of the consummation of the transactions contemplated
               by this Agreement;

                   (xi)   involving a material partnership, joint venture or
               similar agreement with another party, in each case that may bind
               Buyer or any of its Affiliates upon or as a result of the
               consummation of the transactions contemplated by this Agreement;

                   (xii)  for any agreement with (A) YBI or any of its
               Affiliates, (B) any Person directly or indirectly owning,
               controlling or holding with power to vote, 5% or more of the
               outstanding voting securities of YBI or any of its Affiliates,
               (C) any Person 5% or more of whose outstanding voting securities
               are directly or indirectly owned, controlled or held with power
               to vote by YBI or any of its Affiliates or (D) any director or
               officer of YBI or any of its Affiliates or any "associates" or
               members of the "immediate family" (as such terms are respectively
               defined in Rule 12b-2 and Rule 16a-1 of the 1934 Act) of any such
               director or officer;

                   (xiii) for any agreement with any director or officer of
               either Seller or with any "associate" or any member of the
               "immediate family" (as such terms are respectively defined in
               Rules 12b-2 and 16a-1 of the 1934 Act) of any such director or
               officer;

                   (xiv)  involving compensation to any employee or consultant
               in excess of $300,000 or for the employment of any employee or
               consultant for a term greater than three (3) years; and

                   (xv)   involving any labor agreement or collective bargaining
               agreement of the Station.

               (b) No default (with the lapse of time or giving of a notice or
both) on the part of either Seller and, to the Knowledge of Sellers any other
party thereto, exists under any of the Contracts other than such defaults that
could not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

               (c) Each Contract is in full force and effect and constitutes the
legal and binding obligation of, and is legally enforceable against, such Young
Entity party thereto in accordance with its terms and, to the

                                       20

<PAGE>

Knowledge of the Young Entities, is legally enforceable against the other
parties thereto, except as could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

               (d) The Young Entities have previously furnished to Buyer prior
to the date of this Agreement true and complete copies of all written Contracts
listed on Schedule 3.05(a), including all amendments, modifications and
supplements thereto, and any assignments thereof, and have previously described
to Buyer the material provisions of all oral and pending Contracts .

               (e) There are no leasing commissions or similar payments due,
arising out of, resulting from or with respect to any Lease that are owed by the
Sellers.

               (f) Schedule 3.05(a)(ii) sets forth, as of the date set forth
thereon, all Contracts relating to Program Rights, true and complete copies of
which Contracts have been previously furnished to Buyer prior to the date of
this Agreement. Schedule 3.05(f) sets forth (i) an accurate schedule of material
programming payments and usage report in respect of Program Rights for calendar
year 2002, (ii) an accurate schedule setting forth the material feature film
inventory of the Station as of January 30, 2002, (iii) an accurate schedule of
the material cash programming assets of the Station dated as of December 31,
2001, (iv) an accurate schedule of the material cash programming liabilities of
the Station dated as of December 31, 2001 and (v) an accurate schedule of the
material barter programming assets dated as of December 31, 2001.

     SECTION 3.06. Intangible Property. (a) There are no claims, demands or
proceedings pending or, to the Knowledge of Sellers, threatened by any third
party pertaining to or challenging either Seller's right to use any of the
Intangible Property or that any Intangible Property or any services provided,
process used or products manufactured, produced or used or sold by either Seller
do or may conflict with, or infringe or otherwise violate the rights of third
parties.

               (b) There is no trademark, trade name, patent or copyright owned
by a third party that either Seller is using in the Business without valid
license to do so.

               (c) Except for the Excluded Assets, the Intangible Property
includes all Copyrights, Patents and Trademarks, including rights in and to call
letters used in the operation of the Station.

               (d) Except as set forth on Schedule 3.06(e), all material owned
Intangible Property, including the call letters necessary for or used in the
Business, has been duly applied for or registered in, filed in or issued by, as
applicable, the appropriate Governmental Authority where such registration,
filing or issuance is necessary for the Business, and all such filings,
registrations and issuances are valid and in good standing.

               (e) Except for the Excluded Assets and except as set forth on
Schedule 3.06(e), all material Copyrights and Trademarks that are registered or
filed are described, listed or set forth on Schedule 3.06(e)(1) and 3.06(e)(2),
respectively, all of which are transferable to Buyer without the consent of any
third party and none of which have been licensed to any third party.

               (f) Sellers have not received any written notice, or otherwise
have Knowledge, that any of the owned Intangible Property is the subject of a
judicial or administrative finding, opinion or office action or has been
adjudged invalid, unenforceable or unregistrable in whole or in part. To the
Knowledge of Sellers each Intangible Property is valid and enforceable.

     SECTION 3.07. Real Property. (a) The applicable Seller has (A) good,
marketable and insurable fee simple absolute or (B) valid leasehold or other
interests, as applicable, in the Real Property, in each case free and clear of
any and all Liens other than (i) Permitted Liens and, (ii) Liens that will be
discharged on or prior to the Closing Date by the Sellers. Neither of the
Sellers owns, leases, subleases, licenses or uses any real property in the
operation of the Station other than the Real Property. True and complete copies
of (i) the last deed of record, title insurance policies and surveys pertaining
to any owned Real Property and (ii) the Leases, in each case have heretofore
been furnished by the Young Entities to Buyer. Upon the Closing, all right,
title and interest of Sellers in, to and under the Leases and the Real Property
will be transferred to Buyer free and clear of all Liens other than Permitted
Liens.

                                       21

<PAGE>

               (b) Neither Seller nor any Affiliate thereof has subjected the
Real Property to any easements, rights, duties, obligations, covenants,
conditions, restrictions, limitations or agreements not of record that could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

               (c) Neither Seller has received written notice of or otherwise
has Knowledge of any pending condemnation or similar proceeding affecting the
Real Property or any portion thereof, and to the Knowledge of Sellers, no such
condemnation or similar proceeding is presently contemplated or threatened that
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

               (d) Neither Seller has received any written notice from any
insurance company of any defects or inadequacies in the Real Property or any
part thereof that would materially adversely affect the insurability of the Real
Property or the premiums for the insurance thereof. Neither Seller has received
any notice from any insurance company that has issued or refused to issue a
policy with respect to any portion of the Real Property or by any board of fire
underwriters (or other body exercising similar functions) requesting the
performance of any repairs, alterations or other work with which compliance has
not been made.

               (e) Except as disclosed on Schedule 3.07(e), there are no parties
in possession of any portion of the Real Property other than Sellers, whether as
lessees, sublessees, licensees or tenants at will.

               (f) The current use of the Real Property does not violate any
restrictive covenants affecting the Real Property or otherwise violate in any
material respect any Law. To the Knowledge of Sellers, there is no Law now in
existence the operation of which would require either Seller to make any
material expenditure to modify or improve any of the Real Property or to bring
such Real Property into substantial compliance therewith. To the Knowledge of
Sellers, there are no facts that would prevent any portion of the Real Property
from being occupied after the Closing in substantially the same manner as
currently occupied.

               (g) The Real Property has reasonably adequate access to and from
completed, dedicated and accepted public roads, and there is no pending or, to
the Knowledge of Sellers, threatened Action that would materially impair or
curtail such access. All towers, guy anchors, buildings and other improvements
are wholly within the lot limits of the applicable Real Property and do not
encroach on any adjoining premises, except for such encroachments as could not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect. There are no material encroachments upon any of the owned
parcels of Real Property or adjoining parcels by buildings, structures or
improvements that could reasonably prevent the use of each such parcel of Real
Property as it is currently used.

               (h) There are no structural, electrical, mechanical, plumbing,
air conditioning, heating or other defects in the buildings located on the Real
Property, and the roofs of the buildings located on the Real Property are free
from leaks and in good condition, except for such defects or leaks as could not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

               (i) All amounts owing to any architect, contractor, subcontractor
or materialman for labor or materials performed, rendered or supplied to or in
connection with the Real Property have been or shall have been paid prior to
Closing.

     SECTION 3.08. Title to Purchased Assets; Liens. . Sellers have good and
valid title to or valid leasehold interests in all of the Purchased Assets, free
and clear of any and all Liens (other than Permitted Liens and Liens that will
be discharged by Sellers on or prior to the Closing Date). At the Closing, all
of the Purchased Assets shall be transferred to Buyer free and clear of any and
all Liens (other than Permitted Liens).

     SECTION 3.09. Sufficiency of Assets. Other then the Excluded Assets, the
Purchased Assets constitute all of the property and assets used or held for use
in the Business and constitute all of the assets and properties necessary for
the continued operation of the Business as currently conducted.

     SECTION 3.10. Condition of Equipment. Each material item of Equipment is in
good condition and repair, ordinary wear and tear excepted, and is not in need
of imminent repair or replacement and those material items of Equipment
constituting transmitting and studio equipment are operating in accordance with
their intended

                                       22

<PAGE>

use. All material operating systems and computer software are (A) operating
satisfactorily for the task to which they are being applied, and in accordance
with all vendor warranties and vendor-supplied user documentation, (B)
reasonably capable of handling existing and currently contemplated work volumes
and (C) not in imminent need of repair or replacement.

     SECTION 3.11. Financial Information. (a) True and complete copies of the
balance sheets as at December 31, 1999, 2000 and 2001 for the Station (the
December 31, 2001 balance sheet of the Station is referred to herein as the
"Reference Balance Sheet") and the related statements of income for each of the
years ended December 31, 1999, 2000 and 2001 and the related statement of cash
flow for the year ended December 31, 2001 are attached as Schedule 3.11(a)
(collectively, the "Reference Financial Statements").

              (b)  The Reference Financial Statements (A) are in accordance with
the books and records of the Station, (B) have been prepared in accordance with
GAAP (it being understood that the Reference Financial Statements do not contain
footnotes) except as set forth on Schedule 3.11(b)(1), (C) fairly present in all
material respects the financial condition of the Station as at the dates
indicated and the results of its operations and cash flows for the periods then
ended and (D) do not reflect any (i) unusual or infrequently occurring items or
(ii) related party transactions, in each case, except as set forth on Schedule
3.11(b)(2).

              (c)  The books and records of the Station (A) reflect all items of
income and expense and all assets and liabilities required to be reflected
therein in accordance with GAAP except as set forth on Schedule 3.11(b)(i) and
(B) are in all material respects complete and correct.

              (d)  A true and complete copy of the 2002 monthly operating budget
is attached hereto as Schedule 3.11(d).

     SECTION 3.12. Absence of Certain Changes or Events. (a) Except as disclosed
in Schedule 3.12(a), since the Balance Sheet Date, the Business has been
conducted in the ordinary course consistent with past practice.

              (b)  Since the Balance Sheet Date through the date hereof and
except as set forth in Schedule 3.12(b) or as contemplated by this Agreement,
there has not been:

                   (i)   any event, occurrence, development or state of
               circumstances or facts that, individually or in the aggregate,
               has had or could reasonably be expected to have a Material
               Adverse Effect;

                   (ii)  any incurrence, assumption or guarantee by either
               Seller of any indebtedness for borrowed money with respect to the
               Business other than in the ordinary course of business consistent
               with past practices, in each case that may bind or obligate Buyer
               or any of its Affiliates in any way upon or as a result of the
               consummation of the transactions contemplated hereby;

                   (iii) any making of any loan, advance or capital
               contributions to or investment in any Person other than loans,
               advances, capital contributions or investments made in the
               ordinary course of business consistent with past practices, in
               each case that may bind or obligate Buyer or any of its
               Affiliates in any way upon or as a result of the consummation of
               the transactions contemplated hereby;

                   (iv)  any damage, destruction or loss, whether or not covered
               by insurance, with respect to the property and assets of the
               Station having a replacement cost of more than $25,000 for any
               single loss or $100,000 for all such losses;

                   (v)   instituted or settled any material legal proceeding by
               either Seller relating to the Business;

                   (vi)  any transaction or commitment made, or any contract or
               agreement entered into, by either Seller relating to the Business
               or Purchased Assets (including the acquisition or disposition of
               any assets) or any relinquishment by either Seller of any
               contract or other right, in

                                       23

<PAGE>

               either case, other than transactions and commitments in the
               ordinary course of business consistent with past practices and
               those contemplated by this Agreement;

                   (vii)  any material change in the Station's usage or pattern
               of usage of Program Rights, any material change in the broadcast
               hours or in the percentages of types of programming broadcast by
               the Station or any other material change in the programming
               policies of the Station;

                   (viii) the creation or other incurrence by either Seller of
               any Lien on any asset relating to the Business other than
               Permitted Liens;

                   (ix)   any (A) establishment of any bonus, insurance,
               employment, severance, deferred compensation, pension,
               retirement, profit sharing, stock option (including any grant of
               any stock options, stock appreciation rights, performance awards
               or restricted stock awards), stock purchase or other employee
               benefit plan (or any amendment to any such existing agreement),
               (B) grant of any severance or termination pay to any officer of
               either Seller or employee of the Business, or (C) increase or
               change to the rate or nature of the compensation (including
               wages, salaries and bonuses) that is paid or payable or to become
               payable to any Person employed by the Station, except (x) in each
               case, as may be required by Law or existing contracts or
               applicable collective bargaining agreements that have previously
               been disclosed to Buyer and (y) in the ordinary course of
               business consistent with past practices with respect to Persons
               who are not either (i) responsible for any principal
               administrative, operating or financial function of the Business
               or (ii) talent;

                   (x)    any labor dispute, other than routine individual
               grievances, or any activity or proceeding by a labor union or
               representative thereof to organize any employees of the Station,
               which employees were not subject to a collective bargaining
               agreement at the Balance Sheet Date, or any lockouts, strikes,
               slowdowns, work stoppages or threats thereof by or with respect
               to any employees of the Station;

                   (xi)   any sale of Real Property;

                   (xii)  any change in any method of accounting or accounting
               practice by either Seller with respect to the Business except for
               any such change required by reason of a concurrent change in
               GAAP; or

                   (xiii) any agreement or commitment to do anything set forth
               in this Section 3.12.

     SECTION 3.13. Absence of Litigation. Except as set forth in Schedule
3.13(a)(1), there is no material Action pending or, to the Knowledge of Sellers,
threatened against or affecting either Seller or any of its or their properties
or assets before any Governmental Authority. Except as set forth in Schedule
3.13(a)(2), neither Seller nor any of its or their properties or assets is
operating under or subject to any Governmental Order that could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

     SECTION 3.14. Compliance with Laws. Except as set forth in Schedule 3.14
and except for matters relating to the FCC which are addressed by Section 3.15,
none of the Young Entities is in material violation of, and has not since
January 1, 2000 violated in any material respect, and, to the Knowledge of
Sellers, is not under investigation with respect to and has not been threatened
to be charged with or given notice of any material violation of, any applicable
Law or Governmental Order, except for violations that could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

     SECTION 3.15. FCC Matters; Qualification. (a) Schedule 3.15(a)(1) contains
a true and complete list of the FCC Licenses, and there are no other licenses,
permits or other authorizations from the FCC required for the lawful operation
of the Station substantially in the manner now operated. Sellers have delivered
true, correct and complete copies of the FCC Licenses to Buyer, including any
and all amendments and modifications thereto. The FCC Licenses were validly
issued by the FCC, are validly held by Fidelity and are in full force and
effect. All FCC actions with respect to the Station's main analog and digital
licenses are Final Orders. The FCC Licenses have been issued for the full terms
customarily issued to a broadcast television station in the State of California,
and the

                                       24

<PAGE>

FCC Licenses are not subject to any condition except for conditions applicable
to broadcast television licenses generally or otherwise disclosed in Schedule
3.15(a)(2). All required FCC regulatory fees with respect to the FCC Licenses
have been paid. Fidelity has filed or made all applications, reports, and other
disclosures required by the FCC to be filed or made by Fidelity with respect to
the Station in the current license term. Sellers have no reason to believe that
the FCC will not renew the FCC Licenses in the ordinary course.

              (b)  Except as set forth on Schedule 3.15(b), the Station,
including both analog Channel 9 and digital Channel 43, is operating at full
power and not pursuant to any temporary waiver. Sellers have constructed and are
operating DTV Channel 43 in accordance with its license for that channel. Except
as set forth on Schedule 3.15(b), Sellers have no applications pending before
the FCC relating to the operation of the Station.

              (c)  Except as set forth in Schedule 3.15(c), no qualifications,
registrations, filings, privileges, franchises, licenses, permits, approvals or
authorizations of any Governmental Authority other than the FCC Licenses are
required to own and operate the Station as a television broadcast station in
substantially the same manner as the Station is being operated as of the date
hereof and the Closing Date.

              (d)  Except as set forth on Schedule 3.15(d)(1), Sellers have
operated the Station, its physical facilities, electrical and mechanical systems
and transmitting and studio equipment substantially in compliance with the
Communications Act and the FCC Licenses. To the Knowledge of Sellers, all
antenna support structures used in the operation of the Stations have been
registered with the FCC, if registration is required, and comply with all other
requirements of the FCC and the Federal Aviation Administration. Except as set
forth in Schedule 3.15(d)(2), to the Knowledge of Sellers, there are no
applications, petitions, complaints, proceedings or other actions pending or
threatened before the FCC relating to the Station, other than proceedings
affecting the broadcast television industry generally.

              (e)  Fidelity is qualified under the Communications Act to assign
the FCC Licenses to Buyer. To the Knowledge of Sellers, there is no fact or
circumstance relating to the Station or either Seller or any of their Affiliates
that would cause the FCC to deny the FCC Applications. Sellers have no reason to
believe that the FCC Applications might be challenged or might not be granted by
the FCC in the ordinary course due to any fact or circumstance relating to the
Sellers' operation of the Station or either of Sellers or any of their
Affiliates.

     SECTION 3.16. Cable and Satellite Matters. (a) Schedule 3.16(a) contains a
list, including channel positions, of all cable television systems in the Los
Angeles Nielsen Designated Market Area (the "Los Angeles DMA") on which the
Station's analog signal is presently carried ("Market Cable Systems"). Sellers
have timely made must-carry elections or entered into retransmission consent
agreements with respect to the Market Cable Systems. No Market Cable System has
provided written notice to Sellers of any signal quality issue or failed to
respond to a request for carriage or, to the Knowledge of Sellers, sought any
form of relief from carriage of the Station from the FCC. Sellers have not
received any written notice of any Market Cable System's intention to delete the
Station from carriage or to change the Station's channel position on such cable
system. Sellers have no petition pending before the FCC to extend the Station's
market for cable carriage purposes beyond the Los Angeles DMA.

              (b)  Schedule 3.16(b) contains a list of the cable systems that,
to the Knowledge of Sellers, carry the Station, including the Station's channel
position, where known, on such cable systems outside the Los Angeles DMA.

              (c)  Schedule 3.16(c) contains a list of all retransmission
consent, channel positioning or other agreements with cable systems with respect
to the Station, and Sellers have previously furnished Buyer with true and
correct copies of all such agreements.

              (d)  Sellers timely made must-carry elections or have entered into
retransmission consent agreements with DirectTV and EchoStar, each of which
provide local-into-local service in the Los Angeles DMA. Schedule 3.16(d)(1)
lists these retransmission consent agreements, and Sellers have previously
furnished Buyer with true and correct copies of these agreements. Neither
DirecTV nor EchoStar has advised Sellers or any of their Affiliates of any
signal quality or other issues with respect to the Station's retransmission
consent elections, and the Station is being carried by DirecTV and EchoStar in
the Los Angeles DMA on such carrier's satellite serving such

                                       25

<PAGE>

market. Except as disclosed on Schedule 3.16(d)(2), none of the Sellers nor any
of their Affiliates has unresolved disputes with satellite carriers with respect
to the carriage of the Station. The Station was not retransmitted by a satellite
carrier on May 1, 1991.

     SECTION 3.17. Employees; Labor Matters. (a) Schedule 3.17(a) sets forth a
true and complete list, dated as of the date set forth thereon, of all
individuals employed by the Station, including the names, date of hire, current
rate of compensation, employment status (i.e., active, disabled, on authorized
leave and reason therefor), department, title, whether covered by a Bargaining
Agreement and whether full-time, part-time or per-diem. Each such employee is
employed by a Seller.

              (b)  Except as set forth on Schedule 3.17(b), the Business is not
subject to or bound by any labor agreement or collective bargaining agreement.
Sellers are in compliance with all currently applicable laws respecting
employment and employment practices, terms and conditions of employment and
wages and hours, and are not engaged in any unfair labor practice, except for
such compliance the failure of which or the engagement of which could not
reasonably be expected to have a Material Adverse Effect. There is no unfair
labor practice complaint pending or, to the Knowledge of Sellers, threatened
against either Seller before the National Labor Relations Board. No strike or
other labor dispute involving either Seller is pending or, to the Knowledge of
Sellers, threatened, and, to the Knowledge of Sellers, there is no activity
involving any Station Employee seeking to certify a collective bargaining unit
or engaging in any other organizational activity.

     SECTION 3.18. Employee Benefit Plans. (a) Schedule 3.18(a)(1) identifies
each Employee Plan. Sellers have previously furnished to Buyer copies of the
Employee Plans (and, if applicable, related trust agreements) and all amendments
thereto and written interpretations thereof together with the three most recent
annual reports (Form 5500 including, if applicable, Schedule B thereto) and the
most recent actuarial valuation report prepared in connection with any Employee
Plan. Schedule 3.18(a)(2) identifies each Employee Plan that is (i) a
Multiemployer Plan, (ii) a Title IV Plan or (iii) maintained in connection with
any trust described in Section 501(c)(9) of the Code. The Sellers have provided
Buyer with complete age, salary, service and related data as of January 29, 2002
for all employees covered under any Employee Plan.

              (b)  Except as set forth on Schedule 3.18(b), neither Seller nor
any of its ERISA Affiliates has (i) engaged in, or is a successor or parent
corporation to an entity that has engaged in, a transaction described in
Sections 4069 or 4212(c) of ERISA or (ii) incurred, or reasonably expects to
incur prior to the Closing Date (A) any liability under Title IV of ERISA
arising in connection with the termination of, or a complete or partial
withdrawal from, any plan covered or previously covered by Title IV of ERISA or
(B) any liability under Section 4971 of the Code that in either case could
become a liability of Buyer or any of its ERISA Affiliates after the Closing
Date. Except as set forth on Schedule 3.18(b), no condition exists that (i)
could constitute grounds for termination by the PBGC of any employee benefit
plan that is subject to Title IV of ERISA that is maintained by either Seller or
any of its ERISA Affiliates or (ii) presents a material risk of complete or
partial withdrawal from any multiemployer plan, as defined in Section 3(37) of
ERISA, which could result in either Seller or Buyer or any ERISA Affiliate of
any of them incurring a withdrawal liability within the meaning of Section 4201
of ERISA. The assets of either Seller are not now, nor will they after the
passage of time be, subject to any Lien imposed under Code Section 412(n) by
reason of a failure of either Seller to make timely installments or other
payments required under Code Section 412. Except as set forth on Schedule
3.18(b), if a "complete withdrawal" by Sellers and all of their ERISA Affiliates
were to occur as of the Closing Date with respect to all Multiemployer Plans,
neither Seller nor any of its ERISA Affiliates would incur any material
withdrawal liability under Title IV of ERISA.

              (c)  Each Employee Plan that is intended to be qualified under
Section 401(a) of the Code is so qualified and has been so qualified during the
period since its adoption; each trust created under any such Plan is exempt from
Tax under Section 501(a) of the Code and has been so exempt since its creation.
Sellers have previously provided Buyer with the most recent determination letter
of the IRS relating to each such Employee Plan. Except as could not reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect, each Employee Plan has been maintained in substantial compliance with
its terms and with the requirements prescribed by any and all applicable
statutes, orders, rules and regulations, including but not limited to ERISA and
the Code.

                                       26

<PAGE>

              (d) Neither Seller has any current or projected liability in
respect of post-employment or post-retirement health or medical or life
insurance benefits for retired, former or current employees of such or other
Seller, except as required to avoid excise tax under Section 4980B of the Code.
No condition exists that would prevent either Seller from amending or
terminating any Employee Plan providing health or medical benefits in respect of
any active employee of the Station other than limitations imposed under the
terms of a collective bargaining agreement.

              (e) All contributions and payments accrued under each Employee
Plan, determined in accordance with prior funding and accrual practices, as
adjusted to include proportional accruals for the period ending on the Closing
Date, will be discharged and paid on or prior to the Closing Date except to the
extent (i) reflected as a liability on the Closing Balance Sheet or (ii)
retained by Sellers. There has been no amendment to, written interpretation of
or announcement (whether or not written) by either Seller or any of its
Affiliates relating to, or change in employee participation or coverage under,
any Employee Plan that would increase materially the expense of maintaining such
Employee Plan above the level of the expense incurred in respect thereof for the
most recent fiscal year ended prior to the date hereof.

              (f) Except as set forth on Schedule 3.18(f), there is no contract,
plan or arrangement (written or otherwise) covering any employee or former
employee of the Station that, individually or collectively, could give rise to
the payment of any amount that would not be deductible pursuant to the terms of
Section 280G of the Code.

              (g) Except as set forth on Schedule 3.18(g) and except as
otherwise provided in Section 8.07, no employee or former employee of the
Station will become entitled to any bonus, retirement, severance, job security
or similar benefit or enhanced such benefit (including acceleration of vesting
or exercise of an incentive award) as a result of the transactions contemplated
hereby.

              (h) Neither Seller has currently in place any stay bonus plan or
arrangement.

     SECTION 3.19. Environmental Matters. (a) Except as would not have a
Material Adverse Effect or as otherwise disclosed on Schedule 3.19(a):

                   (i)   no notice, demand, request for information, citation,
              summons or order has been received, no complaint has been filed,
              no penalty has been assessed and no investigation or Action or
              review is pending or, to the Knowledge of Sellers, threatened by
              any Governmental Authority or other Person with respect to any
              matters relating to either Seller or the Station and relating to
              or arising out of any Environmental Law;

                   (ii)  there are no liabilities of or relating to either
              Seller or the Station of any kind whatsoever, whether accrued,
              contingent, absolute, determined, determinable or otherwise,
              arising under or relating to any Environmental Law, and to the
              Knowledge of Sellers there are no facts, conditions, situations or
              set of circumstances that could reasonably be expected to result
              in or be the basis for any such liability;

                   (iii) no Hazardous Material, incinerator, sump, surface
              impoundment, lagoon, landfill, septic, wastewater treatment or
              other disposal system or underground storage tank (active or
              inactive) is or has been present at, on or under the Real Property
              or any property now or previously owned, leased or operated by the
              Station or either Seller except, in each case, in compliance with
              Environmental Laws;

                   (iv)  no Hazardous Material has been Released in violation of
              Environmental Laws at, on or under any property now or previously
              owned, leased or operated by either Seller or the Station;

                   (v)   no property now or previously owned, leased or operated
              by either Seller or the Station nor, to the Knowledge of Sellers,
              any property to which either Seller or the Station has, directly
              or indirectly, transported or arranged for the transportation of
              any Hazardous Material is listed or, to the Knowledge of Sellers,
              proposed for listing, on the National Priorities List

                                       27

<PAGE>

              promulgated pursuant to CERCLA, on CERCLIS (as defined in CERCLA)
              or on any similar federal, state or local list of sites requiring
              investigation or clean-up; and

                   (vi) the Business is and the Sellers are in compliance in all
              material respects with all Environmental Laws and have obtained
              and are in compliance with all Environmental Permits; such
              Environmental Permits are valid and in full force and effect and
              will not be terminated or impaired or become terminable, in whole
              or in part, as a result of the transactions contemplated hereby.

              (b)  Since January 1, 1996, there has been no environmental
investigation, study, audit, test, review or other analysis conducted of which
either Seller has Knowledge in relation to the Station or any property or
facility now or previously owned, leased or operated by the Station that has not
been previously delivered to Buyer.

     SECTION 3.20. Taxes. Except as set forth in Schedule 3.20, (a) each Young
Entity has timely filed or been included in, or will timely file or be included
in, all material Tax Returns required to be filed by it or in which it is to be
included with respect to Taxes for any period ending on or before the Closing
Date, (b) all material Taxes that are due with respect to the Young Entities
have been paid except to the extent such Taxes are being contested in good
faith, (c) no deficiency for any material amount of Tax has been asserted or
assessed by a Tax authority against any Young Entity or for which any Young
Entity may be liable, (d) there are no judicial proceedings with respect to
material Taxes due from any Young Entity; and (e) there is no contract,
agreement, plan or arrangement covering any Person that, individually or
collectively, could give rise to the payment of any amount that would not be
deductible by reason of Section 280G of the Code.

     SECTION 3.21. Brokers. Except for Credit Suisse First Boston Corporation,
whose fees will be paid by the Young Entities, there is no broker, finder,
investment banker or other intermediary that has been retained by or is
authorized to act on behalf of any Young Entity who or that might be entitled to
any fee or commission from Buyer or any of its Affiliates in connection with the
transactions contemplated by this Agreement or the Ancillary Agreements.

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer represents and warrants to the Young Entities as follows:

     SECTION 4.01. Corporate Existence and Power. Buyer is a corporation duly
incorporated, validly existing and in good standing under the Laws of the State
of New York and has all corporate powers and all governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted.

     SECTION 4.02. Corporate Authorization. (a) The execution and delivery of
this Agreement and the Ancillary Agreements by Buyer, the performance by Buyer
of its obligations hereunder and thereunder and the consummation by Buyer of the
transactions contemplated hereby and thereby are within Buyer's corporate powers
and have been duly authorized by all requisite corporate action on the part of
Buyer.

                   (b) This Agreement has been, and at the Closing each
Ancillary Agreement will be, duly executed and delivered by Buyer. This
Agreement (assuming due authorization, execution and delivery by each Young
Entity) constitutes, and each Ancillary Agreement to which Buyer will be a party
will constitute when executed and delivered by Buyer, the legal, valid and
binding obligation of Buyer, enforceable against Buyer in accordance with its
terms.

     SECTION 4.03. Governmental Authorization. The execution, delivery and
performance by Buyer of this Agreement and each Ancillary Agreement and the
consummation of the transactions contemplated hereby and thereby require no
action by or in respect of, or filing with or notification to, any Governmental
Authority other than (a) compliance with any applicable requirements of the HSR
Act, (b) the FCC, and (c) any such action by or in respect of or filing with any
Governmental Authority as to which the failure to take, make or obtain could not

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reasonably be expected to have, individually or in the aggregate, a material
adverse effect on Buyer or on Buyer's ability to perform its obligations under
this Agreement or the Ancillary Agreements.

     SECTION 4.04. Noncontravention. The execution, delivery and performance of
this Agreement by Buyer and each Ancillary Agreement to which Buyer will be a
party and the consummation of the transactions contemplated hereby and thereby
do not and will not (a) violate or conflict with the certificate of
incorporation or by-laws of Buyer, (b) assuming compliance with the matters
referred to in Section 4.03, conflict with or violate any Law or Governmental
Order applicable to Buyer, (c) require any consent or other action by or
notification to any Person under, constitute a default under, or give to any
Person any rights of termination, amendment, acceleration or cancellation of any
right or obligation of Buyer or to a loss of any benefit relating to the
Business to which Buyer is entitled under, any provision of any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise or
other agreement or instrument to which Buyer is a party or by which any of
Buyer's assets is or may be bound or (d) result in the creation or imposition of
any Lien on any asset of Buyer, except for Permitted Liens, except, in the cases
of clauses (b), (c) and (d), for any such violations, consents, actions,
defaults, rights or losses as could not have, individually or in the aggregate,
a material adverse effect on Buyer or on Buyer's ability to perform its
obligations under this Agreement or the Ancillary Agreements.

     SECTION 4.05. Absence of Litigation. There are no Actions pending against
or, to Buyer's knowledge, threatened against Buyer before any Governmental
Authority that in any manner challenges or seeks to prevent, enjoin, alter or
delay materially the transactions contemplated by this Agreement.

     SECTION 4.06. FCC Qualification. Except as set forth on Schedule 4.06,
Buyer is legally, technically, financially and otherwise qualified under the
Communications Act to acquire the FCC Licenses and own and operate the Station.

     SECTION 4.07. Brokers. There is no broker, finder, investment banker or
other intermediary that has been retained by or is authorized to act on behalf
of Buyer who or that might be entitled to any fee or commission from either
Seller or any of its Affiliates upon consummation of the transactions
contemplated by this Agreement and the Ancillary Agreements.

                                   ARTICLE V
                         COVENANTS OF THE YOUNG ENTITIES

     SECTION 5.01. Operations Pending Closing . Except as otherwise set forth
herein and subject to the provisions of Section 7.03 regarding control of the
Station, after the date of this Agreement and prior to the Closing, Sellers
shall:

              (a)  operate or cause the operation of the Station in the ordinary
     course of business consistent with past practices and use commercially
     reasonable best efforts to preserve substantially intact the relationships
     of the Station with its customers, employees, suppliers, licensors,
     licensees, distributors and others with whom the Station deals;

              (b)  operate the Station substantially in compliance with the
     Communications Act and not cause or permit, or agree or commit to cause or
     permit, by act or failure to act, any of the FCC Licenses to expire or to
     be revoked, suspended or adversely modified, or take or fail to take, any
     action that would be reasonably likely to cause the FCC or any other
     Governmental Authority to institute proceedings for the suspension,
     revocation or adverse modification of any of the FCC Licenses;

              (c)  until the Audited Financial Statements are prepared, not make
     any change in any method of accounting or accounting practice utilized in
     the preparation of the Reference Financial Statements, and from and after
     the date of the Audited Financial Statements, not make any change in any
     method of accounting or accounting practice utilized in the preparation of
     the Audited Financial Statements, in each case, except for any such change
     required by reason of a concurrent change in GAAP;

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              (d) not sell, lease, license or otherwise dispose of any assets or
     properties relating to the Station except (i) pursuant to existing
     contracts or commitments or (ii) in the ordinary course of business
     consistent with past practices;

              (e) not enter into or agree to enter into any agreement to sell,
     purchase or encumber any parcel of Real Property;

              (f) maintain the Equipment in good operating condition, ordinary
     wear and tear excepted, and replace with a substantially equivalent asset
     of substantially equivalent quality or utility any of the Equipment that
     shall not be working or shall be lost, stolen or destroyed;

              (g) except as otherwise provided in Section 8.07, (A) not hire any
     Person without Buyer's prior written consent; (B) not increase or otherwise
     change the rate or nature of, or prepay, the compensation (including wages,
     salaries and bonuses) that is paid or payable to any Person employed by the
     Station, except in the ordinary course of the business consistent with past
     practices or pursuant to existing compensation and fringe benefit plans,
     practices and arrangements that have been furnished (in the case of such
     plans) or disclosed (in the case of such practices and arrangements) to
     Buyer prior to the date of this Agreement; (C) not enter into, renew or
     allow the renewal of or entering into, any employment or consulting
     agreement or other contract or arrangement with respect to the performance
     of personal services for the Station without Buyer's prior written consent;
     (D) not increase or otherwise change the rate or nature of severance or
     other termination benefits that are paid or payable to any Person employed
     by the Station; and (E) not agree or commit to do any of the foregoing
     provided, however, that with respect to clauses (A) and (C) of this Section
     5.01(g), if Buyer does not provide its consent, Sellers may nonetheless
     take such action(s) as described in such clauses, provided that Buyer does
     not upon consummation of the transactions contemplated by this Agreement
     incur any liability or obligation relating to or arising from such
     action(s).

              (h) except with Buyer's prior written consent, such consent not to
     be unreasonably withheld or delayed and except as otherwise provided in
     Section 8.07, (A) not enter into, or become obligated under, any agreement
     or commitment on behalf of the Station except for: (x) any individual
     Program Rights agreement with a term of six (6) months or less or that
     involve payments or receipts of $200,000 or less; provided, however, that
     in no event may either Seller enter into Program Rights agreements that in
     the aggregate involve payments or receipts of $500,000 or more without
     Buyer's prior written consent, and (y) any other agreement or commitment
     (other than advertising sales contracts for cash only) with a term of six
     (6) months or less or that involve payments or receipts of $50,000 or less;
     provided, however, that in no event may either Seller enter into such other
     agreements or commitments that in the aggregate involve payments or
     receipts of $250,000 or more without Buyer's prior written consent, or (B)
     not change, amend, terminate or otherwise modify or agree or commit to
     change, amend, terminate or otherwise modify any Contract (other than
     advertising sales contracts for cash only) in any material respect except
     for those Contracts that terminate or expire prior to the Effective Time by
     their own terms; provided, however that neither Seller shall enter into or
     agree or commit to enter into any agreements or transactions on behalf of
     the Station with one another, with Affiliates of Sellers or with other
     divisions of either Seller without Buyer's prior written consent;

              (i) without limiting the restrictions contained in Section
     5.01(h): (A) keep Buyer apprised of material developments in negotiations
     for existing and proposed Program Rights agreements and promptly provide
     Buyer with copies of all Program Rights agreements entered into by or on
     behalf of the Station; and (B) use commercially reasonable best efforts to
     include the following language in each Program Rights agreement to be
     negotiated and executed from and after the date of this Agreement other
     than such agreements set forth on Schedule 3.05(a): "If Station becomes
     commonly owned or operated with any television station in the Los Angeles
     Nielsen Designated Market Area, the programs may be broadcast on the
     Station or such other station(s) or any of them."

              (j) not enter into or agree or commit to enter into any new
     Tradeout Agreement relating to the Station prior to Closing that will not
     be fully performed prior to the Closing without Buyer's prior written
     consent;

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              (k)  (A) utilize the Program Rights only in the ordinary course of
     business consistent with past practices and substantially in accordance
     with the anticipated usage of such Program Rights as set forth on Schedule
     3.05(f) and (B) not sell or otherwise dispose of any such Program Rights
     and make payments on Program Rights and agreements on a basis consistent
     with past practices and otherwise in accordance with this Agreement;

              (l)  use their commercially reasonable best efforts to take all
     appropriate, reasonable action to protect the present service areas of the
     Station from increased electrical interference from other stations,
     existing or proposed, and to exercise reasonable best efforts to maintain
     or cause the maintenance of carriage, if any, of the Station's signals on
     all cable systems and satellite carriers;

              (m)  except as otherwise provided in Section 8.07, not adopt, or
     agree or commit to adopt, any Employee Plan or other pension, profit
     sharing, deferred compensation or similar plan, program or trust on behalf
     of personnel of the Station, or modify or agree or commit to modify the
     existing Plans insofar as they relate to personnel of the Station, other
     than modifications or agreements or commitments to make any adoptions or
     modifications that apply to similarly situated employees of Sellers;

              (n)  in the event that the Bargaining Agreements expire prior to
     the Effective Time, seek the consent of the appropriate international and
     local union(s) to a short-term extension of the expiring agreement(s) to
     enable Buyer to negotiate the terms of said agreement(s) after the
     Effective Time, and, in the event the consent to such an extension is not
     obtained, to confer in advance with Buyer about all applicable issues
     subject to bargaining; provided that Sellers shall, to the extent permitted
     by applicable Law, propose that such Bargaining Agreements provide for a
     term of one year but in no event more than three (3) years;

              (o)  promptly notify Buyer of any attempted or actual collective
     bargaining organizing activity with respect to Station Employees; and not
     propose, to the extent permitted by Law, that any collective bargaining
     agreement applicable to any Station Employees be binding by any "successor"
     employer of such employees;

              (p)  follow the Station's usual and customary policy with respect
     to (A) extending credit for sales of broadcast time on the Station and (B)
     collecting accounts receivable relating to the Station arising from such
     extension of credit;

              (q)  (A) promote and advertise the Station, (B) promote and
     advertise, including on-air promotion and advertising, any program that is
     currently airing on the Station, in each case consistent with past
     practices, (C) make expenditures or commitments to make expenditures
     consistent with past practices, and (D) apply or spend all amounts received
     from Warner Brothers, Universal and Paramount for the 2001/2002 season
     (which amounts Sellers estimate to be $1.1 million) for advertising,
     marketing and promotion (the "A&P Grant") prior to the Closing Date for the
     purposes for which they were intended;

              (r)  not make or agree or commit to make any capital expenditure
     greater than $5,000 in connection with any particular project or greater
     than $50,000 in total, without Buyer's prior written consent, which consent
     shall not be unreasonably withheld; and

              (s)  timely make any must-carry/retransmission election that must
     be made prior to the Closing Date, provided that Sellers shall not elect
     must-carry (by default or otherwise) or enter into a retransmission consent
     agreement without first conferring with Buyer, or, prior to September 15,
     2002, without Buyer's consent.

     SECTION 5.02. Access to Information. (a) From the date hereof until the
Closing Date, upon reasonable notice, Sellers shall (i) give Buyer, its counsel,
financial advisors, auditors and other authorized representatives full access
during normal business hours to the offices, properties, books and records of
the Station, (ii) furnish to Buyer, its counsel, financial advisors, auditors
and other authorized representatives such financial and operating data and other
information relating to the Station as such Persons may from time to time
reasonably request and (iii) instruct the employees, counsel and financial
advisors of Sellers to cooperate with Buyer in its investigation of the Station;

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provided, however, that Buyer may not communicate with Station Employees other
than the Station's general manager, chief engineer, chief financial officer and
the Person primarily responsible for employment and labor matters, in each case,
without Sellers' prior written consent, which consent shall not be unreasonably
withheld and that any investigation pursuant to this Section 5.02 shall be
conducted in such manner as not to unreasonably interfere with the conduct of
the Business or any of the businesses or operations of Sellers or any Affiliate
of Sellers. No investigation by Buyer or other information received by Buyer
shall operate as a waiver or otherwise affect any representation, warranty or
agreement given or made by Sellers hereunder.

              (b)  On and after the Closing Date, Sellers and their Affiliates
will hold, and will use their commercially reasonable best efforts to cause
their respective officers, directors, employees, accountants, counsel,
consultants, advisors and agents to hold, in confidence, unless compelled to
disclose by judicial or administrative process or by other requirements of law,
all confidential documents and information concerning the Buyer, Buyer's
Affiliates and the Business.

              (c)  On and after the Closing Date, Sellers will afford promptly
to Buyer and its agents reasonable access to its books of account, financial and
other records (including accountant's work papers), information, employees and
auditors to the extent necessary or reasonably useful for Buyer in connection
with any audit, investigation, dispute or litigation or any other reasonable
business purpose relating to the Business; provided that any such access by
Buyer shall not unreasonably interfere with the conduct of the businesses or
operations of Sellers or any Affiliate of Sellers.

     SECTION 5.03. Title Insurance and Surveys. From the date hereof until the
Closing Date, Sellers shall cooperate with Buyer so that Buyer can promptly
obtain the following (at Buyer's expense):

              (a)  Preliminary reports on title covering a date subsequent to
     the date of this Agreement, issued by the Title Company, which preliminary
     reports shall contain commitments (the "Title Commitments") of the Title
     Company to issue an ALTA title insurance policy or policies (the "Title
     Policy") insuring the interests of Buyer (or its designee) in each owned
     parcel of the Real Property subject only to the Permitted Liens. The
     appropriate Seller shall execute a title affidavit that shall be in form
     and substance reasonably satisfactory to such Seller and the Title Company.

              (b)  Surveys of the owned parcels of Real Property as of a date
     subsequent to the date of this Agreement.

              (c)  A Phase I Environmental Site Assessment Report prepared
     consistent with ASTM Standard 1527-00 concerning the Real Property from an
     environmental engineering firm retained by Buyer that shall confirm, in a
     manner reasonably satisfactory to Buyer, the non-existence of any Hazardous
     Materials, other than those not in violation of any Environmental Law, on
     or about the Real Property or any material violation of Environmental Laws.
     Any audit report beyond a Phase I Report shall be conducted by Buyer only
     with the prior written consent of Sellers.

     SECTION 5.04. Financial Reports. (a) Within twenty-five (25) days after the
end of each month following the date of this Agreement until the Closing Date,
Sellers shall furnish Buyer with a copy of the monthly unaudited financial
reports for the Station (including balance sheet and income and cash flow
statements) for each such month and the fiscal year to the end of such month).
All of the foregoing financial statements shall comply with the requirements
concerning financial statements set forth in Section 3.11(b).

              (b)  Seller shall deliver to Buyer no later than thirty (30) days
from the date of this Agreement the audited balance sheet of the Station as of
December 31, 2001 (the "Audited Balance Sheet"), and the related audited
statements of income and cash flow of the Station for the year then ended,
together with all related notes and schedules thereto, accompanied by the
reports thereon of the Station's independent accountants (collectively with the
Audited Balance Sheet, the "Audited Financial Statements") (A) prepared in
accordance with the books and records of the Station, (B) prepared in accordance
with GAAP applied on a basis consistent with the past practices of the Station
and (C) which present fairly in all material respects the financial condition of
the Station as at December 31, 2001 and the results of its operations and cash
flows for the period then ended. Sellers shall pay all

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costs, fees and expenses in connection with the preparation of the Audited
Financial Statements. The Audited Financial Statements shall be consistent in
all material respects with the Reference Financial Statements.

              (c)  Buyer and its independent auditors shall be permitted to
review and make copies reasonably required of the (i) working papers of Sellers
and their independent auditors relating to the Audited Financial Statements and
(ii) any supporting schedules, analyses and other documentation relating to the
Audited Financial Statements.

     SECTION 5.05. Employees. Sellers shall deliver to Buyer an updated list,
dated as of a date no more than fifteen (15) days prior to the anticipated
Closing Date, of all individuals employed by the Station, including the names,
date of hire, current rate of compensation, employment status (i.e., active,
disabled, on leave and reason therefor), department, title, whether covered by a
Bargaining Agreement and whether full-time, part-time or per diem.

     SECTION 5.06. Estoppel Certificates. Sellers shall use commercially
reasonable best efforts to obtain promptly estoppel certificates, other than as
relates to the Mt. Wilson Lease, in a form reasonably acceptable to Buyer,
executed by each of the landlords of the Leases and upon their receipt of any
such estoppels, Sellers shall deliver such estoppel certificates to Buyer as
promptly as practicable but in no event less than five (5) days prior to the
Closing Date.

     SECTION 5.07. Risk of Loss. (a) Upon the occurrence prior to the Closing of
any casualty loss, damage or destruction material to the operation of the
Station, Sellers shall promptly give Buyer written notice setting forth in
detail the extent of such loss, damage or destruction and the cause thereof if
known. Sellers shall use their commercially reasonable best efforts to commence
promptly and thereafter to proceed diligently to repair or replace any such
lost, damaged or destroyed property whether such loss, damage or destruction
occurs prior to, on or after the date of this Agreement, such efforts to include
the payment of any applicable insurance policy deductibles. However, in the
event that such repair or replacement is not fully completed prior to the
Closing Date, or the loss, damage or destruction causes the Station to be off
the air for forty-eight (48) consecutive hours or more, then Buyer may elect to
(i) consummate the transactions contemplated hereby on the Closing Date, in
which event Sellers shall assign to Buyer the portion of the insurance proceeds,
if any, not previously expended by the Young Entities to repair or replace the
damaged or destroyed property, (ii) terminate this Agreement, or (iii) delay the
Closing Date until fifteen (15) days after Sellers give written notice to Buyer
of completion of the repair or replacement of the damaged or destroyed property;
provided that in no event shall Buyer delay the Closing to a date more than
sixty (60) days after the Termination Date; provided further that if Sellers are
unable through their commercially reasonable best efforts to complete such
repair or replacement within sixty (60) days after the casualty, Buyer may then
terminate this Agreement.

              (b)  If the Closing does occur as contemplated under Section
5.07(a)(i), the Purchase Price shall not be adjusted by reason of such casualty
or such assignment of the insurance proceeds to Buyer.

     SECTION 5.08. Intentionally Omitted.

     SECTION 5.09. Payments. (a) Sellers shall prior to the Closing Date, in
addition to any and all regularly scheduled payments due thereunder, prepay to
The Los Angeles Lakers, Inc. an amount in connection with the Laker Broadcast
Letter Agreement by and between The Los Angeles Lakers, Inc. and Young
Broadcasting of Los Angeles, Inc. on behalf of KCAL-TV dated June 10, 1998 (the
"Laker Broadcast Letter Agreement") such that payments required to be made by
Buyer, in addition to the regular scheduled payments, in each of the next three
(3) calendar years thereunder are reduced by an amount equal to $1,777,799 for a
total reduction equal to $5,333,397 or, if the Closing Date occurs after October
2, 2002, the first year reduction amount shall be reduced by $43,360 per game of
the 2002/2003 pre- and regular Lakers season aired by the Station prior to the
Closing Date.

              (b)  Sellers shall deliver to Buyer, at least five Business Days
prior to the Closing Date, an acknowledgement, executed by a senior executive
officer of The Los Angeles Lakers, Inc. (the "Lakers Acknowledgement"), that
payments required to be made as described above have been made.

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              (c)  If Sellers fail to deliver the Lakers Acknowledgement in
accordance with Section 5.09(b), Buyer shall deduct an amount equal to
$4,910,651 minus an amount equal to $39,923 for each pre- and regular season
Laker game for the 2002/2003 season aired by the Station prior to the Closing
(the "Laker Prepayment Amount") from the amount to be delivered to Sellers
pursuant to Section 2.08(a) of this Agreement.

     SECTION 5.10. YBI Credit Agreement. The Young Entities agree that (i) if
the consent described in Section 10.03(h) is not received at the Closing, Buyer
may apply a portion of the Purchase Price to all amounts outstanding under the
YBI Credit Agreement, and (ii) any amounts so applied shall be treated for all
purposes hereunder as if Buyer had delivered such amount to the account of
Sellers pursuant to Section 2.08(a).

     SECTION 5.11. YBI Assets. To the extent that any asset or property used or
employed in the Business would be a Purchased Asset but for the fact that such
asset or property is held or owned by YBI or any of its Affiliates (other than
Sellers), YBI will cause such assets and property to be conveyed, transferred,
assigned and delivered to Buyer at the Closing pursuant to Article II of this
Agreement and such assets and property shall be treated, for all purposes of
this Agreement, as Purchased Assets.

     SECTION 5.12. Transition Services. To facilitate a smooth transition of the
web content of the websites located at Uniform Resource Locators www.kcaltv.com
and www.kcal.com (collectively, the "Web Sites"), the Young Entities shall
maintain the Web Sites in substantially the same manner as currently maintained
for a period no longer than ninety days from the Closing Date.

     SECTION 5.13. Obligations of Sellers. YBI agrees to cause the due and
punctual performance and observance by each Seller of all the terms, covenants,
conditions, agreements and undertakings on the part of such Seller, to be
performed or observed under this Agreement and the Ancillary Agreements, in
accordance with the terms thereof, including the punctual payment when due of
all obligations of the Sellers under this Agreement and the Ancillary
Agreements. In the event that any Seller shall fail in any manner whatsoever to
perform or observe any of its obligations hereunder or under the Ancillary
Agreements when the same shall be required to be performed or observed, then YBI
will itself duly and punctually perform or observe, or cause to be duly and
punctually performed or observed, such obligation and it shall not be a
condition to the obligation of YBI hereunder that Buyer shall first make demand
upon, or give notice to, or institute proceedings against, Sellers.

     SECTION 5.14. Representation Agreement. (a) YBLA shall not, and YBI shall
cause Adam Young Inc. not to, terminate the Agreement between Young Broadcasting
of Los Angeles, Inc. and Adam Young Inc. (the "Representative"), dated as of
March 1, 1997 (the "Representation Agreement").

              (b)  The parties acknowledge that Buyer may terminate the
Representation Agreement on or after the Closing Date (the "Termination Notice
Date"), provided that such termination would not be effective until the first
anniversary of the Termination Notice Date (such effective date, the
"Representation Termination Date"). For the period between the Termination
Notice Date and the Representation Termination Date (the "Representation
Services Period"), so long as Buyer, in its sole discretion, shall request, YBI
shall cause the Representative to provide Buyer all representation services in
connection with the Station's National Spot Advertising (as such term is defined
in the Representation Agreement) as currently provided to YBI pursuant to the
Representation Agreement (the "Representation Services").

              (c)  For each month that the Representative performs the
Representation Services for Buyer, the Representative shall be entitled to its
monthly commissions as set forth in Section 5 of the Representation Agreement.

              (d)  If during the Representation Services Period, Buyer, in its
sole discretion, requests that the Representative cease performing the Services
(the "Discretionary Termination Date"), the Representative shall be entitled to
commissions only in an amount equal to the average of the Representative's
monthly commissions for the twelve (12) months prior to the Discretionary
Termination Date times the sum of (x) the number of months remaining in the
Representation Services Period and (y) two.

              (e)  If Buyer does not make the request described in Section
5.15(d), upon the occurrence of the Representation Termination Date, the
Representative shall be entitled to its commissions as set forth in Section

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5.15(c) plus two (2) months' runover, which runover amount shall be equal to the
average of the Representative's monthly commissions for the twelve (12) months
prior to the Representation Termination Date times two (2).

              (f)  YBI shall cause Adam Young Inc. to fully perform its
obligations under the Representation Agreement, as amended by the provisions of
this Section 5.14.

     SECTION 5.15. Intentionally Omitted.

                                   ARTICLE VI
                               COVENANTS OF BUYER

     SECTION 6.01. Access to Information. On and after the Closing Date, upon
reasonable notice, Buyer will afford promptly to Sellers and their agents
reasonable access to its properties, books and records relating exclusively to
any period ending on or before the Closing Date and to employees of Buyer to the
extent necessary to establish facts related to such period.

     SECTION 6.02. Other Agreements. Buyer agrees to divest one (1) radio
station in the Los Angeles DMA if and as required by the FCC in order to comply
with Section 73.3555(c) of the FCC's Rules. Buyer shall not, subsequent to the
date of this Agreement, enter into any agreement to acquire any other business
or property or interest that (A) would conflict with the transactions
contemplated by this Agreement under the Communications Act as then in effect
and (B) would reasonably be expected to have the effect of materially delaying
the receipt of the FCC Consent by reason of a violation of the Communications
Act as then in effect.

                                  ARTICLE VII
                    COVENANTS OF BUYER AND THE YOUNG ENTITIES

     SECTION 7.01. Commercially Reasonable Efforts; Further Assurances. (a)
Subject to the terms and conditions of this Agreement, Buyer and the Young
Entities will use their commercially reasonable efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things reasonably
necessary or desirable under applicable Law to consummate the transactions
contemplated by this Agreement; provided that notwithstanding anything to the
contrary contained in this Agreement, except as set forth on Schedule 4.06,
neither Buyer nor any of its Affiliates shall be required to sell or otherwise
dispose of, hold separate (through the establishment of a trust or otherwise),
divest itself of, or limit the ownership or operations of all or any portion of
its businesses, assets or operations.

              (b)  In furtherance and not in limitation of Section 7.01(a), each
of Buyer and the Young Entities agrees to make appropriate filings pursuant to
applicable Antitrust Laws, including a Notification and Report Form pursuant to
the HSR Act with respect to the transactions contemplated hereby within fifteen
(15) Business Days after the date hereof and to supply as promptly as
practicable any additional information and documentary material that may be
requested pursuant to the HSR Act and to take all other actions necessary to
cause the expiration or termination of the applicable waiting periods under the
HSR Act as soon as practicable. Buyer shall pay all HSR Act filing fees relating
to the transactions contemplated hereby, irrespective of whether the
transactions contemplated by this Agreement are consummated.

              (c)  Also in furtherance and not in limitation of Section 7.01(a),
Buyer and the Young Entities shall prepare and file with the FCC as soon as
practicable but in no event later than fifteen (15) Business Days after the
execution of this Agreement, the requisite applications (the "FCC Applications")
and other necessary instruments or documents requesting the FCC Consent and
thereupon prosecute such applications with all reasonable diligence to obtain
the requisite FCC Consent; provided, however, except as provided in the
following sentence, neither Buyer nor the Young Entities shall be required to
pay consideration to any third party to obtain the FCC Consent. Buyer shall pay
one-half (1/2) and Sellers shall pay one-half (1/2) of the FCC filing fees
relating to the transactions contemplated hereby, irrespective of whether the
transactions contemplated by this Agreement are consummated. Buyer and the Young
Entities each shall oppose any petitions to deny or other objections filed with
respect to the FCC Applications to the extent such petition or objection relates
to such party. The parties hereto shall not take any intentional action that
would, or intentionally fail to take any action which such action or failure to
take such action would reasonably be expected to have the effect of materially
delaying the receipt of the FCC

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<PAGE>

Consent. If the Closing shall not have occurred for any reason within the
original effective period of the FCC Consent, and no party shall have terminated
this Agreement under Article XI, the parties hereto shall jointly request an
extension of the effective period of the FCC Consent. No extension of the FCC
Consent shall limit the right of any party to exercise its rights under Article
XI.

           (d)      In connection with the efforts referenced in Sections 7.01
(a), 7.01 (b) and 7.01(c) to obtain (i) all requisite approvals and
authorizations for the transactions contemplated by this Agreement under the HSR
Act or any other Antitrust Law and (ii) the FCC Consent, Buyer and each of the
Young Entities shall use its commercially reasonable efforts to (A) cooperate in
all respects with each other in connection with any filing or submission and in
connection with any investigation or other inquiry, including any proceeding
initiated by a private party, (B) keep the other party informed in all material
respects of any material communication received by such party from, or given by
such party to, the Federal Trade Commission (the "FTC"), the Antitrust Division
of the Department of Justice (the "DOJ"), the FCC or any other Governmental
Authority and of any material communication received or given in connection with
any proceeding by a private party and (C) permit the other party to review any
material communication given by it to, and consult with each other in advance of
and be permitted to attend any meeting or conference with, the FTC, the DOJ, the
FCC or any such other Governmental Authority or, in connection with any
proceeding by a private party, with any other Person, in each case regarding any
of the transactions contemplated by this Agreement. For purposes of this
Agreement, "Antitrust Laws" means the Sherman Act, as amended, the Clayton Act,
as amended, the HSR Act, the Federal Trade Commission Act, as amended, and all
other federal, state and foreign, if any, Laws that are designed or intended to
prohibit, restrict or regulate actions having the purpose or effect of
monopolization or restraint of trade or lessening of competition through merger
or acquisition.

      SECTION 7.02. Certain Filings; Further Actions. The Sellers and Buyer
shall cooperate with one another (i) in determining whether any action by or in
respect of, or filing with, any Governmental Authority is required, or any
actions, consents, approvals or waivers are required to be obtained from parties
to any material Contracts, in connection with the consummation of the
transactions contemplated by this Agreement and (ii) in taking such actions or
making any such filings, furnishing information required in connection therewith
and seeking timely to obtain any such actions, consents, approvals or waivers;
provided, however, that none of the Young Entities nor Buyer shall be required
to pay consideration to obtain any such consent, approval or waiver and Sellers
shall not agree to or permit the amendment of any Contract of the Station or
relating to the Business in order to obtain any consent or approval.

      SECTION 7.03. Control Prior to Closing. The parties acknowledge and agree
that, for the purposes of the Communications Act, this Agreement and, without
limitation, the covenants in Article V, are not intended to and shall not be
construed to transfer control of the Station from Sellers to Buyer.

      SECTION 7.04. Public Announcements. The parties shall agree on the terms
of the press release that announces the transactions contemplated hereby and
thereafter agree to consult with each other before issuing any press release or
making any public announcement with respect to this Agreement or the
transactions contemplated hereby, including any press releases or public
statements the making of which may be required by applicable Law or any listing
agreement with any national securities exchange.

      SECTION 7.05. Notices of Certain Events. Sellers and Buyer shall each
      promptly notify the other of:

           (a)      any notice or other communication from any Person alleging
      that the consent of such Person is or may be required in connection with
      the transactions contemplated by this Agreement;

           (b)      any notice or other communication from any Governmental
      Authority in connection with the transactions contemplated by this
      Agreement;

           (c)      in the case of Sellers, any Action commenced or, to the
      Knowledge of Sellers, threatened against, relating to or involving or
      otherwise affecting the Business that, if pending on the date of this
      Agreement, would have been required to have been disclosed pursuant to
      Section 3.13 or that relates to the consummation of the transactions
      contemplated by this Agreement; and

                                       36

<PAGE>

         (d)      in the case of Buyer, any Action commenced or, to its
     knowledge, threatened against, relating to or involving or otherwise
     affecting Buyer that, if pending on the date of this Agreement, would have
     been required to have been disclosed pursuant to Section 4.05 or that
     relates to the consummation of the transactions contemplated by this
     Agreement.

                                  ARTICLE VIII
                       PENSION, EMPLOYEE AND UNION MATTERS

     SECTION 8.01. Employement. (a) Buyer shall employ as of the Effective Time
each Station Employee employed immediately prior to the Effective Time who is
employed pursuant to an employment agreement, personal services contract or
Bargaining Agreement or who is represented by a union. Buyer shall offer
employment to each other Station Employee employed immediately prior to the
Effective Time who: (x) is not on authorized leave of absence, sick leave, short
or long term disability leave, military leave or layoff with recall rights
("Active Employees"); or (y) is on authorized leave of absence, sick leave,
short or long term disability leave, military leave or layoff with recall rights
and who returns to active employment immediately following such absence and
within 60 days of the Closing Date or such later date as required under
applicable law ("Inactive Employees"). For the purposes hereof, all such Active
or Inactive Employees who accept Buyer's offer of employment, the employees who
are employed pursuant to employment agreements, personal services contracts or
Bargaining Agreements or who are represented by a union are hereinafter referred
to collectively as the "Transferred Employees", and the "Employment Commencement
Date" as referred to herein shall mean the Effective Date for Transferred
Employees who are (i) employed pursuant to employment agreements, personal
services contracts or Bargaining Agreements or who are represented by a union
and (ii) Active Employees, and the date on which the Transferred Employee begins
employment with Buyer for Transferred Employees who are Inactive Employees.
Buyer shall provide salary or wages, and benefits that are in the aggregate are
of a comparable value to the salary or wages, and benefits provided to similarly
situated employees of the Buyer, subject to enrollment periods, exclusions or
limitations as are generally applied by the Buyer and/or the pertinent employee
benefit plan; provided, however, that Buyer agrees that, for a period of not
less than sixty (60) days beginning as of the Effective Time, Buyer shall
compensate Transferred Employees who are sales department personnel of the
Station at a salary and on terms and conditions (excluding employee benefits)
that are at least as favorable in the aggregate as those provided by the
applicable Seller immediately prior to the Effective Time.

         (b)       Sellers agree to use reasonable efforts to facilitate the
transition of the Transferred Employees to employment with Buyer as of the
Employment Commencement Date. Such reasonable efforts shall include affording
Buyer reasonable opportunities prior to the Employment Commencement Date to
review employment records (other than medical and individual performance or
evaluation records), as permitted by Law, of the Transferred Employees, to
discuss terms and conditions of employment with Buyer as of the Employment
Commencement Date and to distribute to the Transferred Employees forms and
documents relating to employment with Buyer to the Transferred Employees.

         (c)       Except as prohibited by Law, after the Closing Sellers shall
deliver to Buyer originals or copies of all personnel files and records
(including medical records, if any, but excluding benefit plan records) related
to the Transferred Employees, and Sellers shall have reasonable continuing
access to such files and records thereafter.

     SECTION 8.02. Savings Plan. Buyer shall cause one or more tax-qualified
defined contribution plans established or maintained by Buyer ("Buyer's 401(k)
Plan") to accept rollover contributions from the Transferred Employees of any
account balances distributed to them by the Young Broadcasting Inc. 401(k) Plan.
Buyer shall allow any such Transferred Employees' outstanding plan loan to be
rolled into Buyer's 401(k) Plan. The distribution and rollover described herein
shall comply with applicable Law, and each party shall make all filings and take
any actions required of such party by applicable Law in connection therewith.
Buyer's 401(k) Plan shall credit Transferred Employees with service credit for
eligibility and vesting purposes for service recognized for the equivalent
purposes under the Young Broadcasting Inc. 401(k) Plan.

     SECTION 8.03. Employee Welfare Plans. Sellers shall be responsible for:
(x) claims for medical and dental benefits, disability benefits, life insurance
benefits and workers compensation that are incurred prior to the Employment
Commencement Date; and (y) claims related to "COBRA" coverage attributable to
"qualifying events"

                                       37

<PAGE>

occurring prior to the Employment Commencement Date, in each case with respect
to any Transferred Employees and their beneficiaries and dependents. Buyer shall
be solely responsible for: (i) medical and dental benefits, disability benefits,
life insurance benefits and workers compensation benefits for claims incurred
from and after the Employment Commencement Date for Active Employees; and (ii)
claims relating to "COBRA" coverage attributable to "qualifying events"
occurring from and after the Employment Commencement Date, in each case with
respect to any Transferred Employees and their beneficiaries and dependents. For
purposes of the foregoing, a medical/dental claim shall be considered incurred
when the medical services are rendered or medical supplies are provided, and not
when the condition arose. A life insurance or workers compensation claim shall
be considered incurred prior to a particular date if the injury or condition
giving rise to the claim occurs prior to such date. A disability claim shall be
deemed to be incurred when the employee is declared disabled under the terms of
the applicable disability plan. Transferred Employees shall be given credit
under Buyer's welfare plans for deductibles and out-of-pocket expenses incurred
while employed by either Seller in the relevant calendar year.

       SECTION 8.04. Vacation. Buyer will assume all liabilities for unpaid,
accrued vacation of each Transferred Employee as of the Effective Time to the
extent such accrued vacation does not exceed the vacation to which such
Transferred Employee would be entitled under the terms of Buyer's vacation
policy as currently in effect, giving credit under Buyer's vacation policy for
service with the applicable Seller, and shall permit Transferred Employees to
use their vacation entitlement accrued as of the Closing Date until 6 months
from the Closing Date or the end of the calendar year during which the Closing
occurs, whichever is later. Any additional unpaid accrued vacation to which any
Transferred Employee is entitled shall be retired in consideration of payment
thereof by such Seller to such Transferred Employee on the Closing Date. Service
with both such Seller and Buyer shall be taken into account in determining
Transferred Employees' vacation entitlement under Buyer's vacation policy after
the Closing Date.

       SECTION 8.05. Bargaining Agreement. Buyer shall assume the Bargaining
Agreements including any extension or successor Bargaining Agreements and any
Bargaining Agreements reached with the producers and writers. Sellers'
responsibility under the Sellers' Bargaining Agreements with respect to Sellers'
union employees shall expire at the Effective Time and Buyer shall indemnify and
hold harmless Sellers from any grievance or claim made under the Sellers'
Bargaining Agreements with regard to Sellers' union employees, if asserted after
the Effective Time.

       SECTION 8.06. Non-Solicitation by the Young Entities. (a) Each Young
Entity agrees that for a period of one (1) year after the Closing Date, it will
not, and will cause its Subsidiaries not to, directly or indirectly, solicit for
employment or employ, either as an employee or a consultant, any employee of the
Station who was an employee of the Station at the Closing, unless such person
has been terminated by Buyer; provided that nothing contained in this Section
8.06(a) shall prohibit any Young Entity from general solicitation of employees
over any medium not specifically targeted toward the Station or the Transferred
Employees, including without limitation, newspaper, television, radio and
similar forms of mass media.

                (b)  The parties acknowledge and agree that the restrictions
contained in Section 8.06(a) are a reasonable and necessary protection of the
immediate interests of Buyer, and any violation of these restrictions would
cause substantial injury to Buyer and Buyer would not have entered into this
Agreement without receiving the additional consideration offered by the Young
Entities binding itself to these restrictions. In the event of a breach or a
threatened breach by any Young Entity or any of its Subsidiaries of these
restrictions, Buyer shall be entitled to apply to any court of competent
jurisdiction for an injunction restraining such Person from such breach or
threatened breach (without the necessity of proving the inadequacy of money
damages as a remedy); provided, however, that the right to apply for injunctive
relief shall not be construed as prohibiting Buyer from pursuing any other
available remedies for such breach or threatened breach.

       SECTION 8.07. Sellers' Stay Bonuses. Sellers agree that if either Seller
puts into place, any stay bonus plan or arrangement, such plan or arrangement
will provide that any Transferred Employee otherwise entitled to a stay bonus
must continue employment with Buyer for a minimum period of sixty (60) days to
be eligible therefor. Buyer agrees that Sellers may put into place a stay bonus
plan, arrangement, or agreement and use such additional separate sales incentive
letter agreements designed to encourage retention, as Sellers deem necessary,
for one or more Station Employees, whether individually or for a specific group
of employees and whether or not any such Station Employee may become a
Transferred Employee.

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<PAGE>

                                   ARTICLE IX
                                   TAX MATTERS

        SECTION 9.01.  Bulk Sales. Sellers and Buyer hereby waive compliance
with the provisions of any applicable bulk sales law and no representations,
warranty or covenant contained in this Agreement shall be deemed to have been
breached as a result of such non-compliance. YBI hereby agrees to indemnify,
defend and hold Buyer harmless from and against any and all Losses arising out
of or relating to claims asserted against Buyer pursuant to any applicable bulk
sales law with respect to the Purchased Assets.

        SECTION 9.02.  Transfer Taxes. All Transfer Taxes arising out of or in
connection with the transactions effected pursuant to this Agreement shall be
divided equally between (i) Buyer and (ii) Sellers. The party that has the
primary responsibility under applicable law for the payment of any particular
Transfer Tax shall prepare and file the relevant Tax Return and notify the other
party in writing of the Transfer Taxes shown on such Tax Return. The other party
shall pay the first party an amount equal to one-half of such Transfer Taxes in
immediately available funds no later than the date that is the later of (i) five
Business Days after the date of such notice or (ii) two Business Days prior to
the due date for such Transfer Taxes. The first party shall promptly remit the
Transfer Taxes to the proper Governmental Authority.

                                   ARTICLE X
                              CONDITIONS TO CLOSING

        SECTION 10.01. Conditions to Obligations of Buyer and the Young
Entities. The obligations of Buyer and the Young Entities to consummate the
transactions contemplated by this Agreement shall be subject to the fulfillment
or waiver, at or prior to the Closing, of each of the following conditions:

                 (a)   Any applicable waiting period, clearance, approval or
        filing under the HSR Act or any other Antitrust Law or regulation
        relating to the transactions contemplated hereby shall have expired or
        been terminated or shall have been obtained or made.

                 (b)   No provision of any applicable Law and no Governmental
        Order shall prohibit the consummation of the Closing.

                 (c)   The FCC Consent shall have been granted, which grant
        shall be in full force and effect.

                 (d)   There shall not be instituted or pending any Action
        challenging this Agreement or the transactions contemplated hereby or
        seeking to restrain, alter, prohibit or otherwise materially interfere
        with the Closing by any Person before any Governmental Authority.

        SECTION 10.02. Conditions to Obligations of the Young Entities. The
obligations of the Young Entities to consummate the transactions contemplated by
this Agreement shall be subject to the fulfillment or waiver, at or prior to the
Closing, of each of the following further conditions:

                 (a)   (i) Buyer shall have performed and complied with in all
        material respects all of its obligations hereunder required to be
        performed by it at or prior to the Closing Date; (ii) the
        representations and warranties of Buyer contained in this Agreement and
        in any certificate or other writing delivered by Buyer pursuant hereto
       (A) that are qualified by materiality or Material Adverse Effect shall be
        true and correct and (B) that are not qualified by materiality or
        Material Adverse Effect shall be true and correct in all material
        respects, in each case at and as of the Closing Date as if made at and
        as of such date (except that representations and warranties that by
        their terms speak as of the date of this Agreement or some other date
        need be true and correct, or true and correct in all material respects,
        as the case may be, only as of such specified date); and (iii) the Young
        Entities shall have received a certificate signed by a senior executive
        officer of Buyer to the foregoing effect.

                 (b)   The Young Entities shall have received an opinion of the
        General Counsel of Buyer dated the Closing Date, in form and substance
        reasonably satisfactory to Sellers, with respect to the matters
        specified in Sections 4.01, 4.02 and 4.04.

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<PAGE>

                (c)      Sellers shall have received all documents they may
         reasonably request relating to the existence of Buyer and the authority
         of Buyer for this Agreement, all in form and substance reasonably
         satisfactory to Sellers, including a true and complete copy, certified
         by the Secretary or Assistant Secretary of Buyer, of the resolutions
         duly and validly adopted by the Board of Directors of Buyer evidencing
         its authorization of the execution and delivery of this Agreement and
         consummation of the transactions contemplated hereby.

         SECTION 10.03.  Conditions to Obligations of Buyer. The obligations of
Buyer to consummate the transactions contemplated by this Agreement shall be
subject to the fulfillment or waiver, at or prior to the Closing, of each of the
following further conditions:

                (a)  (i) Each Young Entity shall have performed and complied
         with in all material respects all of its obligations hereunder required
         to be performed by it at or prior to the Closing Date; (ii) the
         representations and warranties of each Young Entity contained in this
         Agreement and in any certificate or other writing delivered by such
         Young Entity pursuant hereto (A) that are qualified by materiality or
         Material Adverse Effect shall be true and correct and (B) that are not
         qualified by materiality or Material Adverse Effect shall be true and
         correct in all material respects, in each case at and as of the
         Closing Date as if made at and as of such date (except that
         representations and warranties that by their terms speak as of the date
         of this Agreement or some other date need be true and correct, or true
         and correct in all material respects, as the case may be, only as of
         such specified date); and (iii) Buyer shall have received a certificate
         signed by a senior executive officer of YBI to the foregoing effect.

                (b)      Buyer shall have received an opinion of Sonnenschein
         Nath & Rosenthal, counsel to the Young Entities dated the Closing Date
         and such other appropriate counsel, in form and substance reasonably
         satisfactory to Buyer, with respect to the matters specified in
         Sections 3.01, 3.02 and 3.04.

                (c)      Buyer shall have received all documents it may
         reasonably request relating to the existence of the Young Entities and
         the authority of each Young Entity for this Agreement, all in form and
         substance reasonably satisfactory to Buyer, including a true and
         complete copy, certified by the Secretary or Assistant Secretary of
         each Young Entity, of the resolutions duly and validly adopted by the
         Board of Directors of such Young Entity evidencing its authorization
         of the execution and delivery of this Agreement and consummation of the
         transactions contemplated hereby.

                (d)      The Young Entities shall have received all Material
         Consents.

                (e)      The FCC Consent shall contain no provision materially
         adverse to any of Buyer, Buyer's Affiliates, or the Station; provided
         that the parties understand and agree that (A) the potential
         divestiture referred to in Section 6.02 shall not be deemed to be
         material to Buyer and (B) the obligation of the parties to consummate
         the transactions contemplated by this Agreement is not subject to the
         condition that the FCC Consent shall have become a Final Order.

                (f)      Buyer shall have received the Title Commitments.

                (g)      During the five (5) days immediately preceding what
         would otherwise be the Closing Date, and on the Closing Date, the
         Station shall have been and shall be operating continuously with all of
         its normal broadcasting capability other than any interruption of a
         duration no longer than thirty (30) minutes.

                (h)      Seller shall have received, in a form reasonably
         satisfactory to Buyer, the consent required under the YBI Credit
         Agreement evidencing (i) consent to the transactions contemplated by
         this Agreement, and (ii) agreement to release all Liens on the
         Purchased Assets granted in favor of the administrative agent under the
         YBI Credit Agreement and related documents.

                                       40

<PAGE>

                                   ARTICLE XI
                                   TERMINATION

     SECTION 11.01. Termination. This Agreement may be terminated at any time
prior to the Closing as follows:

          (a)  by the mutual written consent of Sellers and Buyer;

          (b)  either by Sellers or by Buyer:

               (i)if the Closing shall not have occurred on or before January
          31, 2003 (the "Termination Date") or such other date contemplated by
          Section 5.07 of this Agreement; provided, however, that the right to
          terminate this Agreement under this Section 11.01(b)(i) shall be
          suspended (i) until March 31, 2003, as to all parties if the failure
          to satisfy the condition set forth in Section 10.01(c) shall have been
          the cause of or resulted in, the failure of the Closing to occur on or
          prior to January 31, 2003, and (ii) as to any party whose breach,
          misrepresentation or failure to fulfill any material obligation under
          this Agreement shall have been the cause of, or shall have resulted
          in, the failure of the Closing to occur prior to such date;

               (ii) if there shall be any Law that restrains or prohibits
          consummation of the transactions contemplated hereby or if a final,
          nonappealable Governmental Order is issued restraining or otherwise
          prohibiting consummation of the transactions contemplated hereby; or

               (iii) if the FCC has denied the FCC Applications and such denial
          has become a Final Order.

          (c)  by Sellers upon a breach of any representation, warranty,
     covenant or agreement on the part of Buyer set forth in this Agreement, or
     if any representation or warranty of Buyer shall have become untrue, in
     either case such that the condition set forth in Section 10.02(a) would not
     be satisfied, unless such breach or untruth can be cured prior to Closing
     and after receipt of notice thereof Buyer proceeds in good faith to cure
     such breach or untruth as promptly as practicable;

          (d)  by Buyer upon a breach of any representation, warranty, covenant
     or agreement on the part of any Young Entity set forth in this Agreement,
     or if any representation or warranty of any Young Entity shall have become
     untrue, in either case such that the condition set forth in Section
     10.03(a) would not be satisfied, unless such breach or untruth can be cured
     prior to Closing and after receipt of notice thereof the Young Entities
     proceed in good faith to cure such breach or untruth as promptly as
     practicable;

          (e)  by Buyer as set forth in Section 5.07(a); or

          (f)  by Buyer if the Station shall have for a period of forty-eight
     (48) consecutive hours or more (A) ceased broadcasting on its authorized
     analog frequency, or (B) been broadcasting at a reduced power level, which
     reduction is reasonably likely to materially and adversely affect the
     operations or business of the Station; provided that Buyer must exercise
     this termination right within thirty (30) days after the date on which the
     Station has resumed uninterrupted broadcasting on its authorized analog
     frequency or resumed broadcasts at full power, as the case may be.

     Notwithstanding the foregoing, neither party may terminate this Agreement
pursuant to clause (c) or (d) of this Section 11.01 if any representation or
warranty of the party seeking to terminate is materially inaccurate or breached
or such party has failed to comply with or satisfy, in all material respects,
its covenants and agreements made hereunder.

     The party desiring to terminate this Agreement pursuant to this Section
11.01 (other than pursuant to Section 11.01(a)) shall give notice of such
termination to the other party.

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<PAGE>

     SECTION 11.02. Effect of Termination. If this Agreement is terminated as
permitted by Section 11.01, such termination shall be without liability of any
party hereto (or any stockholder, director, officer, employee, agent, consultant
or representative of such party) to any other party to this Agreement; provided
that if such termination shall result from the willful (i) failure of any party
to fulfill a condition to the performance of the obligations of any other party,
(ii) failure to perform a covenant of this Agreement or (iii) breach by any
party hereto of any representation or warranty or agreement contained herein,
such party shall be fully liable for any and all Losses incurred or suffered by
any other party as a result of such failure or breach. The provisions of this
Section 11.02, Article XIII and the Confidentiality Agreement shall survive any
termination hereof pursuant to Section 11.01.

                                  ARTICLE XII
                            SURVIVAL; INDEMNIFICATION

     SECTION 12.01. Survival. The representations and warranties of the parties
hereto contained in or made pursuant to this Agreement or in any certificate or
other writing furnished pursuant hereto or in connection herewith shall survive
in full force and effect until the first anniversary of the Closing Date;
provided that (i) any and all covenants and agreements shall survive
indefinitely, (ii) the representations and warranties in Sections 3.01, 3.02,
3.21, 4.01, 4.02 and 4.07 shall survive indefinitely; (iii) the representations
and warranties in Sections 3.17, 3.18, 3.19 and 3.20 and the covenants,
agreements, representations and warranties contained in Articles VIII and IX
shall survive until expiration of the statute of limitations applicable to the
matters covered thereby (giving effect to any waiver, mitigation or extension
thereof), if later, and (iv) Sections 2.09, 2.10, 2.11, and 2.12 shall survive
until the proration adjustment contemplated therein has been completed.
Notwithstanding the preceding sentence, any covenant, agreement, representation
or warranty in respect of which indemnity may be sought under this Agreement
shall survive the time at which it would otherwise terminate pursuant to the
preceding sentence, if notice of the inaccuracy or breach thereof giving rise to
such right of indemnity shall have been given to the party against whom such
indemnity may be sought prior to such time.

     SECTION 12.02. Indemnification by Buyer. (a) Buyer shall indemnify against
and hold the Young Entities, their Affiliates and their respective employees,
officers and directors (collectively, the "Seller Indemnified Parties") harmless
from, and agrees to promptly defend any Seller Indemnified Party from and
reimburse any Seller Indemnified Party for, any and all losses, damages, costs,
expenses, liabilities, obligations and claims of any kind (including any Action
brought by any Governmental Authority or Person and including reasonable
attorneys' fees and expenses reasonably incurred) (collectively, "Losses"),
which such Seller Indemnified Party may at any time suffer or incur, or become
subject to, as a result of or in connection with:

               (i)   any failure of any representation or warranty of Buyer
          (whether made in or pursuant to this Agreement or in any instrument or
          certificate delivered by Buyer at the Closing in accordance herewith)
          to be true when made and at and as of the Closing Date as if made at
          and as of such date (except that representations and warranties that
          by their terms speak as of the date of this Agreement or some other
          date need be true only as of such specified date), in each case
          determined without regard to any material adverse effect qualification
          contained in any representation or warranty (each such
          misrepresentation and breach of warranty, or such failure of any
          representation or warranty to be true, a "Buyer Warranty Breach");

               (ii)  any failure by Buyer to carry out, perform, satisfy and
          discharge any of its covenants, agreements, undertakings, liabilities
          or obligations under this Agreement or under any of the documents
          and/or other instruments delivered by Buyer pursuant to this
          Agreement;

               (iii) the Assumed Liabilities; and

               (iv)  to the extent arising from the operation of the Station by
          Buyer from and after the Effective Time, except to the extent
          indemnified by YBI under Section 12.03.

         (b)   Notwithstanding any other provision to the contrary, Buyer shall
not be required to indemnify and hold harmless any Seller Indemnified Party
pursuant to Section 12.02(a)(i): (A) unless such Seller Indemnified Party has
asserted a claim with respect to such matters within the applicable survival
period set forth in

                                       42

<PAGE>

Section 12.01 and (B) until the aggregate amount of the Seller Indemnified
Parties' Losses resulting from Buyer Warranty Breach exceeds $10,000,000, and
then only to the extent of such Losses in excess of such amount; provided,
however, that the cumulative indemnification obligation of Buyer under this
Article XII shall in no event exceed $650 million.

     SECTION 12.03. Indemnification by YBI. (a) YBI shall indemnify against and
hold Buyer, its Affiliates and their respective employees, officers and
directors (collectively, the "Buyer Indemnified Parties") harmless from, and
agrees to promptly defend any Buyer Indemnified Party from and reimburse any
Buyer Indemnified Party for, any and all Losses that such Buyer Indemnified
Party may at any time suffer or incur, or become subject to, as a result of or
in connection with:

             (i)   any failure of any representation or warranty of any Young
        Entity other than a Young FCC Warranty Breach (as defined below)
        (whether made in or pursuant to this Agreement or in any instrument or
        certificate delivered by the Young Entities at the Closing in accordance
        herewith) to be true when made and at and as of the Closing Date as if
        made at and as of such date (except that representations and warranties
        that by their terms speak as of the date of this Agreement or some other
        date need be true only as of such specified date), in each case
        determined without regard to any Material Adverse Effect qualification
        contained in any representation or warranty (other than Section
        3.12(b)(i)) (each such misrepresentation and breach of warranty, or such
        failure of any representation or warranty to be true, a "Young General
        Warranty Breach");

             (ii)  any failure of any representation or warranty of any Young
        Entity contained in Section 3.15 to be true when made and at and as of
        the Closing Date as if made at and as of such date (each such
        misrepresentation and breach of warranty, or such failure of any
        representation or warranty to be true, a "Young FCC Warranty Breach");

             (iii) any failure by any Young Entity to carry out, perform,
        satisfy and discharge any of its covenants, agreements, undertakings,
        liabilities or obligations under this Agreement or under any of the
        documents and/or other instruments delivered by any Young Entity
        pursuant to this Agreement;

             (iv)  the Excluded Assets;

             (v)   the Excluded Liabilities; and

             (vi)  to the extent arising from the operation of the Station
        before the Effective Time other than as a result of or in connection
        with any Assumed Liability.

        (b)  Notwithstanding any other provision to the contrary, YBI shall not
be required to indemnify and hold harmless any Buyer Indemnified Party pursuant
to Section 12.03(a)(i): (A) unless such Buyer Indemnified Party has asserted a
claim with respect to such matters within the applicable survival period set
forth in Section  12.01 and (B) until the aggregate amount of the Buyer
Indemnified Parties' Losses resulting from Young General Warranty Breaches and
Young FCC Warranty Breaches exceeds $10,000,000, and then only to the extent of
such Losses in excess of such amount; provided, however, that the cumulative
indemnification obligation of YBI under this Section 12.03(b) shall in no event
exceed $325 million.

        (c)  Notwithstanding any other provision to the contrary, YBI shall
not be required to indemnify and hold harmless any Buyer Indemnified Party
pursuant to Section 12.03(a)(ii): (A) unless such Buyer Indemnified Party has
asserted a claim with respect to such matters within the applicable survival
period set forth in Section 12.01 and (B) until the aggregate amount of the
Buyer Indemnified Parties' Losses resulting from Young FCC Warranty Breaches and
Young General Warranty Breaches exceeds $10,000,000, and then only to the extent
of such Losses in excess of such amount; provided, however, that the cumulative
indemnification obligation of YBI under this Section 12.03(c) shall in no event
exceed $650 million.

                                       43

<PAGE>

     SECTION 12.04. Notification of Claims. (a) A party entitled to be
indemnified pursuant to Section 12.02 or 12.03 (the "Indemnified Party") shall
promptly notify the party liable for such indemnification (the "Indemnifying
Party") in writing of any claim or demand which the Indemnified Party has
determined has given or could give rise to a right of indemnification under this
Agreement; provided, however, that a failure to give prompt notice or to include
any specified information in any notice will not affect the rights or
obligations of any party hereunder except and only to the extent that, as a
result of such failure, any party which was entitled to receive such notice was
damaged as a result of such failure. Subject to the Indemnifying Party's right
to defend in good faith third party claims as hereinafter provided, the
Indemnifying Party shall satisfy its obligations under this Article XII within
30 days after the receipt of written notice thereof from the Indemnified Party.

          (b)  If the Indemnified Party shall notify the Indemnifying Party of
any claim or demand pursuant to Section 12.04(a), and if such claim or demand
relates to a claim or demand asserted by a third party against the Indemnified
Party which the Indemnifying Party acknowledges is a claim or demand for which
it must indemnify or hold harmless the Indemnified Party under Section 12.02 or
12.03, the Indemnifying Party shall have the right to employ counsel reasonably
acceptable to the Indemnified Party to defend any such claim or demand asserted
against the Indemnified Party for so long as the Indemnifying Party shall
continue in good faith to diligently defend against such action or claim. The
Indemnified Party shall have the right to participate in the defense of any such
claim or demand at its own expense. The Indemnifying Party shall notify the
Indemnified Party in writing, as promptly as possible (but in any case five
Business Days before the due date for the answer or response to a claim) after
the date of the notice of claim given by the Indemnified Party to the
Indemnifying Party under Section 12.04(a) of its election to defend in good
faith any such third party claim or demand. So long as the Indemnifying Party is
defending in good faith any such claim or demand asserted by a third party
against the Indemnified Party, the Indemnified Party shall not settle or
compromise such claim or demand without the consent of the Indemnifying Party,
which consent shall not be unreasonably withheld, and the Indemnified Party
shall make available to the Indemnifying Party or its agents all records and
other material in the Indemnified Party's possession reasonably required by it
for its use in contesting any third party claim or demand. Whether or not the
Indemnifying Party elects to defend any such claim or demand, the Indemnified
Party shall have no obligations to do so. In the event the Indemnifying Party
elects not to defend such claim or action or if the Indemnifying Party elects to
defend such claim or action but fails to diligently defend such claim or action
in good faith, the Indemnified Party shall have the right to settle or
compromise such claim or action without the consent of the Indemnifying Party,
except that the Indemnified Party shall not settle or compromise any such claim
or demand, unless the Indemnifying Party is given a full and completed release
of any and all liability by all relevant parties relating thereto.

                                  ARTICLE XIII
                               GENERAL PROVISIONS

     SECTION 13.01. Expenses. Except as may be otherwise specified herein, all
costs and expenses, including fees and disbursements of counsel, financial
advisors and accountants, incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such costs
and expenses, whether or not the Closing shall have occurred.

     SECTION 13.02. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and 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) one Business Day after having
been dispatched via a nationally recognized overnight courier service, or (d)
three Business Days after being sent by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties at the following
addresses (or at such other address for a party as shall be specified in a
notice given in accordance with this Section 13.02):

                                       44

<PAGE>

          (a) if to Sellers:

              Young Broadcasting Inc.
              599 Lexington Avenue
              New York, NY 10022
              Attention: James A. Morgan,
                         Executive Vice President and Chief Financial Officer
              Facsimile:     (212) 758-1229
              Telephone No.: (212) 754-7070

              With a copy to:

              Sonnenschein Nath & Rosenthal
              1221 Avenue of the Americas
              New York, NY 10020
              Attention: Robert L. Winikoff
              Facsimile:     (212) 768-6800
              Telephone No.: (212) 768-6990

          (b) if to Buyer:

              Viacom Inc.
              1515 Broadway
              New York, NY 10036
              Attention: General Counsel
              Facsimile:     (212) 258-6099
              Telephone No.: (212) 258-6070

              With a copy to:

              CBS Broadcasting Inc.
              524 West 57/th/ Street
              New York, NY 10019
              Attention: President, Viacom Television Stations Group
              Facsimile:     (212) 975-6910
              Telephone No.: (212) 975-4334

     SECTION 13.03. Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     SECTION 13.04. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced because of any Law
or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party hereto. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the greatest extent possible.

     SECTION 13.05. Entire Agreement. This Agreement, the Confidentiality
Agreement, the Ancillary Agreements and any agreements and other documents
entered into contemporaneously with this Agreement constitute the entire
agreement of the parties hereto with respect to the subject matter hereof and
thereof and supersede all prior agreements and undertakings, both written and
oral, between the Young Entities on the one hand and Buyer on the other hand
with respect to the subject matter hereof and thereof, except as otherwise
expressly provided herein.

                                       45

<PAGE>

     SECTION 13.06. Successors and Assigns. This Agreement will be binding upon
and inure to the benefit of the parties hereto and their respective successors
and permitted assigns; provided that no party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the
consent of the other party hereto; provided further that Buyer may, without such
consent, assign any or all of its rights but not its obligations under this
Agreement to any of its Affiliates or any "qualified intermediary" as defined in
Treas. Reg. Sec. 1.1031(k)-1(g)(4) or to any EAT.

     SECTION 13.07. No Recourse. Notwithstanding any of the terms or provisions
of this Agreement, the Young Entities and Buyer agree that neither it nor any
Person acting on its behalf may assert any claims or cause of action against any
employee, officer or director of the other party or stockholder of such other
party in connection with or arising out of this Agreement or the transactions
contemplated hereby.

     SECTION 13.08. No Third-Party Beneficiaries. Except as expressly provided
in Articles IX and XII, this Agreement is for the sole benefit of the parties
hereto and their permitted assigns and nothing herein, express or implied, is
intended to or shall confer upon any other Person or entity any legal or
equitable right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

     SECTION 13.09. Amendments and Waivers. (a) This Agreement may not be
amended or modified except by an instrument in writing signed by the Young
Entities and Buyer.

          (b)  At any time prior to the Closing, any party may (i) extend the
time for the performance of any of the obligations or other acts of any other
party hereto, (ii) waive any inaccuracies in the representations and warranties
of the other party hereto contained herein or in any document delivered pursuant
hereto or (iii) waive compliance by the other party hereto with any of the
agreements or conditions contained herein. Any such extension or waiver shall be
valid only if set forth in an instrument in writing signed by the party to be
bound thereby.

          (c)  No failure or delay by any party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

     SECTION 13.10. Governing Law; Jurisdiction. This Agreement shall be
governed by, and construed in accordance with, the Laws of the State of New
York. All actions and proceedings arising out of or relating to this Agreement
shall be heard and determined in a New York state or federal court sitting in
the City of New York, and the parties hereto hereby irrevocably submit to the
exclusive jurisdiction of such courts in any such action or proceeding and
irrevocably waive the defense of an inconvenient forum to the maintenance of any
such action or proceeding. Each party agrees not to bring any action or
proceeding arising out of or relating to this Agreement in any other court.

     SECTION 13.11. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 13.12. Counterparts. This Agreement may be executed in one or more
counterparts, each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
facsimile shall be effective as delivery of a manually executed counterpart of
this Agreement.

     SECTION 13.13. No Presumption. This Agreement shall be construed without
regard to any presumption or rule requiring construction or interpretation
against the party drafting or causing any instrument to be drafted.

                                       46

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
as of the date first written above by their respective officers thereunto duly
authorized.

                                        CBS BROADCASTING INC.

                                              /s/ Frederic G. Reynolds
                                        By:_____________________________________
                                           Name:  Frederic G. Reynolds
                                           Title: President/Viacom Television
                                                    Stations Group

                                        YOUNG BROADCASTING INC.

                                              /s/ James A. Morgan
                                        By:____________________________________
                                           Name:  James A. Morgan
                                           Title: Executive Vice President

                                        YOUNG BROADCASTING OF LOS ANGELES, INC.

                                              /s/ James A. Morgan
                                        By:_____________________________________
                                           Name:  James A. Morgan
                                           Title: Executive Vice President

                                        FIDELITY TELEVISION, INC.

                                              /s/ James A. Morgan
                                        By:_____________________________________
                                           Name:  James A. Morgan
                                           Title: Executive Vice President

                                       47

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