Document:

<PAGE>

                                                                    Exhibit 10.1

                                CREDIT AGREEMENT

                          dated as of November 7, 2002

                                  by and among

                 INTEREP NATIONAL RADIO SALES, INC., as BORROWER

                                       and

                 THE OTHER ENTITIES PARTY HERETO, as GUARANTORS

                                       and

                            THE LENDERS PARTY HERETO

                                       and

           GUGGENHEIM INVESTMENT MANAGEMENT, LLC, as COLLATERAL AGENT

<PAGE>

<TABLE>
<CAPTION>
Section                                                                     Page
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<S>                                                                           <C>
1.   DEFINITIONS .........................................................    1

2.   MAKING OF LOANS .....................................................   12

     2.1   Making of Loans and Issuance of Warrant .......................   12

     2.2   Closing .......................................................   12

     2.3   Optional Prepayment ...........................................   13

     2.4   Repayment of Loans ............................................   13

     2.5   Use of Proceeds ...............................................   13

     2.6   Interest on Notes .............................................   13

     2.7   Receipt of Payments ...........................................   14

     2.8   Application of Payments .......................................   14

     2.9   Sharing of Payments ...........................................   14

     2.10  Access ........................................................   15

     2.11  Taxes .........................................................   15

3.   COLLATERAL AGENT'S REPRESENTATIONS AND WARRANTIES ...................   15

     3.1   Investment Intention ..........................................   15

     3.2   Accredited Investor ...........................................   16

4.   CREDIT PARTIES' REPRESENTATIONS AND WARRANTIES ......................   16

     4.1   Authorized and Outstanding Shares of Capital Stock ............   16

     4.2   Authorization and Issuance of Stock ...........................   16

     4.3   Securities Laws ...............................................   16

     4.4   Corporate Existence; Compliance with Law ......................   17

     4.5   Subsidiaries ..................................................   17

     4.6   Corporate Power; Authorization; Enforceable Obligations .......   17

     4.7   Financial Statements ..........................................   18

     4.8   Property Interests ............................................   18

     4.9   Material Contracts; Indebtedness; Liens .......................   19

     4.10  Environmental Protection ......................................   19

     4.11  Labor Matters .................................................   20

     4.12  Other Ventures ................................................   21

     4.13  Taxes .........................................................   21

     4.14  No Litigation .................................................   21
</TABLE>

                                        i

<PAGE>

                               TABLE OF CONTENTS

                                CREDIT AGREEMENT

<TABLE>
<CAPTION>
Section                                                                                  Page
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<S>                                                                                      <C>
     4.15   Brokers ..................................................................    22

     4.16   Employment Agreements ....................................................    22

     4.17   Patents, Trademarks, Copyrights and Licenses .............................    22

     4.18   No Material Adverse Effect ...............................................    22

     4.19   ERISA ....................................................................    22

     4.20   SEC Documents ............................................................    24

     4.21   Ordinary Course of Business ..............................................    25

     4.22   Insurance ................................................................    25

     4.23   Accounts Receivable ......................................................    25

     4.24   Minute Books .............................................................    25

     4.25   Full Disclosure ..........................................................    25

5.   COVENANTS .......................................................................    25

     5.1    Affirmative and Financial Covenants ......................................    25

     5.2    Negative Covenants .......................................................    30

6.   CONDITIONS PRECEDENT ............................................................    32

     6.1    Conditions Precedent .....................................................    32

     6.2    Additional Conditions ....................................................    33

7.   EVENTS OF DEFAULT; RIGHTS AND REMEDIES ..........................................    34

     7.1    Events of Default ........................................................    34

     7.2    Remedies .................................................................    36

     7.3    Waivers by the Credit Parties ............................................    36

     7.4    Right of Set-Off .........................................................    36

8.   INDEMNIFICATION .................................................................    37

9.   COLLATERAL AGENT ................................................................    37

     9.1    Collateral Agency Provisions .............................................    37

10.  MISCELLANEOUS ...................................................................    40

     10.1   Complete Agreement; Modification of Agreement; Sale of Interest ..........    40

     10.2   Fees and Expenses ........................................................    41

     10.3   No Waiver by Lender ......................................................    42
</TABLE>

                                       ii

<PAGE>

                               TABLE OF CONTENTS

                                CREDIT AGREEMENT

<TABLE>
<CAPTION>
Section                                                                          Page
-------                                                                          ----
<S>                                                                              <C>
     10.4     Remedies .......................................................    42

     10.5     Waiver of Jury Trial ...........................................    42

     10.6     Severability ...................................................    42

     10.7     Binding Effect; Benefits .......................................    42

     10.8     Conflict of Terms ..............................................    42

     10.9     Governing Law ..................................................    43

     10.10    Notices ........................................................    43

     10.11    Survival .......................................................    43

     10.12    Section and Other Headings .....................................    43

     10.13    Counterparts ...................................................    43

     10.14    Publicity ......................................................    44

     10.15    Confidentiality ................................................    44
</TABLE>

                                      iii

<PAGE>

                               TABLE OF CONTENTS

                                CREDIT AGREEMENT

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
Schedule A            -      Lender
Schedule B            -      Credit Parties

Schedules

Schedule     4.1      -      Stock and Warrants
Schedule     4.5      -      Subsidiaries
Schedule     4.7      -      Financial Statements; Other Obligations
Schedule     4.8      -      Ownership and Properties
Schedule     4.9      -      Material Contracts and Indebtedness
Schedule     4.10     -      Environmental Matters
Schedule     4.12     -      Other Ventures
Schedule     4.13     -      Taxes
Schedule     4.14     -      Litigation
Schedule     4.15     -      Brokers
Schedule     4.16     -      Employment Contracts
Schedule     4.17     -      Patents, Trademarks, Etc.
Schedule     4.18     -      Material Adverse Effect
Schedule     4.19     -      ERISA
Schedule     4.22     -      Insurance

Exhibits

Exhibit A                    Form of Warrant
Exhibit B                    Form of Guarantee
Exhibit C                    Form of Security Agreement
Exhibit D                    Form of Note
Exhibit E                    Opinion of Counsel to the Credit Parties
</TABLE>

                                       iv

<PAGE>

                                CREDIT AGREEMENT

         CREDIT AGREEMENT, dated as of November 7, 2002, by and among Interep
National Radio Sales, Inc., a New York corporation, as borrower ("Interep"), and
each of the entities listed as a guarantor on the signature pages hereto, as
guarantors (each such entity and any Additional Guarantor, a "Guarantor" and
collectively, the "Guarantors"; Interep and each Guarantor individually, a
"Credit Party" and collectively, the "Credit Parties"), and each of the entities
listed as a Lender on the signature pages hereto (individually, a "Lender" and,
collectively, the "Lenders") and Guggenheim Investment Management, LLC, as
collateral agent (the "Collateral Agent").

                              W I T N E S S E T H :

         WHEREAS, Interep has requested the Lenders to make to Interep certain
senior secured Loans in the aggregate principal amount of $10,000,000 as
provided herein, and the Lenders have agreed to make such senior secured Loans
to Interep, upon the terms and conditions hereinafter provided;

         WHEREAS, in connection with the making of the senior secured Loans by
the Lenders, Interep has agreed to issue to the Collateral Agent, upon the terms
and conditions hereinafter provided, a warrant in the form of Exhibit A attached
hereto (the "Warrant") exercisable for 225,000 shares of Class A Common Stock,
$0.01 par value, of Interep ("Class A Common Stock");

         NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained, it is agreed as follows:

1.   DEFINITIONS

         "Additional Guarantor" shall mean any Subsidiary of any Credit Party
that becomes a Guarantor pursuant to Section 5.1(k).

         "Affiliate" shall mean, with respect to any Person, (i) each Person
that, directly or indirectly, owns or controls, whether beneficially, or as a
trustee, guardian or other fiduciary, 5% or more of the Stock having ordinary
voting power in the election of directors of such Person, (ii) each Person that
controls, is controlled by or is under common control with such Person or any
Affiliate of such Person, (iii) each of such Person's officers, directors, joint
ventures and partners, (iv) any trust or beneficiary of a trust of which such
Person is the sole trustee or (v) any lineal descendants, ancestors, spouse or
former spouses (as part of a marital dissolution) of such Person (or any trust
for the benefit of such Person). For the purpose of this definition, "control"
of a Person shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of its management or policies, whether through the
ownership of voting securities, by contract or otherwise.

<PAGE>

         "Agreement" shall mean this Credit Agreement including all amendments,
modifications and supplements hereto and any appendices, exhibits and schedules
hereto or thereto, and shall refer to the Agreement as the same may be in effect
at the time such reference becomes operative.

         "Backlog Amount" shall mean, with respect to any National
Representative Contract at any time, an amount equal to the product of (x) 85%
of the average monthly billings by the radio stations party to such National
Representative Contract, calculated based on such billings actually made by such
radio stations during the 12-month period ending on such date, times (y) the
commission rate applicable to such National Representative Contract times (z)
the number of months remaining until the termination of such National
Representative Contract.

         "Backlog Amount Report" shall mean a report prepared by the Credit
Parties detailing the Backlog Amount for each National Representative Contract
to which any Credit Party is a party and the details necessary for the
calculation of such Backlog Amount, all in a form to be agreed upon by Interep
and the Collateral Agent.

         "Balance Sheet" shall have the meaning set forth in Section 4.7(a)
hereof.

         "Business Day" shall mean any day that is not a Saturday, a Sunday or a
day on which banks are required or permitted to be closed in the State of New
York.

         "Capital Expenditures" shall mean all payments for any fixed assets or
improvements or for replacements, substitutions or additions thereto, that have
a useful life of more than one year and which are required to be capitalized
under GAAP.

         "Capital Lease" shall mean, with respect to any Person, any lease of
any property (whether real, personal or mixed) by such Person as lessee that, in
accordance with GAAP, either would be required to be classified and accounted
for as a capital lease on a balance sheet of such Person or otherwise be
disclosed as a capital lease in a note to such balance sheet, other than, in the
case of Interep or a Subsidiary of Interep, any such lease under which Interep
or such Subsidiary is the lessor.

         "Capital Lease Obligation" shall mean, with respect to any Capital
Lease, the amount of the obligation of the lessee thereunder that, in accordance
with GAAP, would appear on a balance sheet of such lessee in respect of such
Capital Lease or otherwise be disclosed in a note to such balance sheet.

         "Cash Equivalents" shall mean (i) marketable direct obligations issued
or unconditionally guaranteed by the United States of America or any agency
thereof maturing within one year from the date of acquisition thereof; (ii)
commercial paper maturing no more than six months from the date of creation
thereof and at the time of their acquisition having the highest rating
obtainable from either Standard & Poor's Corporation ("S&P) or Moody's Investors
Service, Inc. ("Moody's"); (iii) certificates of deposit maturing no more than
one year from the date of creation thereof, issued by any

                                        2

<PAGE>

commercial bank incorporated under the laws of the United States of America,
having combined capital, surplus and undivided profits of not less than
$200,000,000 and having a rating of at least "A-1" by S&P or "P-1" by Moody's
and (iv) shares of any money market fund that (A) has at least 95% of its assets
invested continuously in the types of investments described in clauses (i)
through (iii) above, (B) has net assets of not less than $200,000,000 and (C) is
rated at least "A-1" by S&P or "P-1" by Moody's.

         "Change of Control" shall mean any of the following: (a) any person or
group of persons (within the meaning of the Exchange Act) shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 promulgated by the SEC
under the Exchange Act) of 30% or more of either the issued and outstanding
shares of common stock of Interep or the voting power of the issued and
outstanding capital stock of Interep; (b) any Credit Party shall be a party to a
merger or consolidation in which such Credit Party is not the survivor or in
which such Credit Party's stockholders immediately prior thereto own less than a
majority of the outstanding voting stock of the survivor, provided, however,
that any merger or consolidation of any Credit Party other than Interep into or
with another Credit Party shall not be deemed a "Change of Control"; (c) any
Credit Party shall have sold, leased or otherwise transferred all or
substantially all of its assets to any Person other than a Credit Party, or (d)
Interep shall fail to have beneficial ownership (within the meaning of Rule
13d-3 promulgated by the SEC under the Exchange Act) of all of the issued and
outstanding shares of capital stock of each Guarantor.

         "Charges" shall mean all federal, state, county, city, municipal,
local, foreign or other governmental (including, without limitation, PBGC) taxes
at the time due and payable, levies, assessments, charges, liens, claims or
encumbrances upon or relating to (i) Interep's or any of its Subsidiaries'
employees, payroll, income or gross receipts, (ii) Interep's or any of its
Subsidiaries' ownership or use of any of its assets, or (iii) any other aspect
of Interep's or any of the Subsidiaries' business.

         "Class A Common Stock" shall have the meaning set forth in the Recitals
of this Agreement.

         "Closing" shall have the meaning set forth in Section 2.2 hereof.

         "Closing Date" shall have the meaning set forth in Section 2.2 hereof.

         "Closing Fee" shall mean a fee in an amount equal to 3.00% of the
aggregate principal amount of the Loans made by the Lenders at the Closing,
payable by the Credit Parties to the Collateral Agent.

         "COBRA" shall have the meaning set forth in Section 4.19(m) hereof.

         "Collateral" shall mean, collectively the Collateral, as such term is
defined in the Security Agreement and the Pledged Collateral, as such term is
defined in the Pledge Agreement.

                                        3

<PAGE>

     "Collateral Documents" shall mean the Guaranty, the Security Agreement and
the Pledge Agreement.

     "Compensation" shall mean, with respect to any Person, all payments and
accruals commonly considered to be compensation, including, without limitation,
all wages, salary, deferred payment arrangements, bonus payments and accruals,
profit sharing arrangements, payments in respect of stock option or phantom
stock option or similar arrangements, stock appreciation rights or similar
rights, incentive payments, pension or employment benefit contributions or
similar payments, made to or accrued for the account of such Person or otherwise
for the direct or indirect benefit of such Person.

     "Default" shall mean any event which, with the passage of time or notice or
both, would, unless cured or waived, become an Event of Default.

     "EBITDA" shall mean, with respect to any Person for any period, the result
of (i) such Person's and its Subsidiaries' consolidated net earnings (or loss),
minus (ii) the aggregate amount of all extraordinary gains of such Person and
its Subsidiaries for such period, plus (iii) the aggregate amount of all
extraordinary losses, non-cash expenses, interest expense, income taxes, and
depreciation and amortization of such Person and its Subsidiaries for such
period, as determined in accordance with GAAP.

     "Eligible Accounts Receivable" shall mean those accounts receivable created
by any Credit Party in the ordinary course of its business, that arise out of
any Credit Party's sale of goods or rendition of services; provided, however,
that Eligible Accounts Receivable shall not include (i) accounts receivable that
are not payable in Dollars and (ii) accounts receivable that are not subject to
a valid and perfected first priority Lien in favor of the Collateral Agent.

     "Environmental Laws" shall mean all federal, state and local laws,
statutes, ordinances and regulations, now or hereafter in effect, and in each
case as amended or supplemented from time to time, and any judicial or
administrative interpretation thereof, including, without limitation, any
applicable judicial or administrative order, consent decree or judgment,
relative to the applicable real estate, relating to the regulation and
protection of human health, safety, the environment and natural resources
(including, without limitation, ambient air, surface water, groundwater,
wetlands, land surface or subsurface strata, wildlife, aquatic species and
vegetation). Environmental Laws include but are not limited to the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended (42
U.S.C.(S) 9601 et seq.) ("CERCLA"); the Hazardous Material Transportation Act,
as amended (49 U.S.C.(S) 1801 et seq.); the Federal Insecticide, Fungicide, and
Rodenticide Act, as amended (7 U.S.C.(S) 136 et seq.); the Resource Conservation
and Recovery Act, as amended (42 U.S.C.(S) 6901 et seq.) ("RCRA"); the Toxic
Substance Control Act, as amended (15 U.S.C.(S) 2601 et seq.); the Clean Air
Act, as amended (42 U.S.C.(S) 740 et seq.); the Federal Water Pollution Control
Act, as amended (33 U.S.C.(S) 1251 et seq.); the Occupational Safety and Health
Act, as amended (29 U.S.C.(S) 651 et seq.) ("OSHA"); and the Safe Drinking Water
Act, as amended (42 U.S.C.(S) 300f et seq.), and any and all

                                       4

<PAGE>

regulations promulgated thereunder, and all analogous state and local
counterparts or equivalents and any transfer of ownership notification or
approval statutes.

         "Environmental Liabilities and Costs" shall mean all liabilities,
obligations, responsibilities, remedial actions, losses, damages, punitive
damages, consequential damages, treble damages, costs and expenses (including,
without limitation, all fees, disbursements and expenses of counsel, experts and
consultants and costs of investigation and feasibility studies), fines,
penalties, sanctions and interest incurred as a result of any claim, suit,
action or demand by any person or entity, whether based in contract, tort,
implied or express warranty, strict liability, criminal or civil statute or
common law (including, without limitation, any thereof arising under any
Environmental Law, permit, order or agreement with any Governmental Authority)
and which relate to any health or safety condition regulated under any
Environmental Law or in connection with any other environmental matter or Spill
or the presence of a hazardous substance or threatened Spill of any Hazardous
Substance.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974
(or any successor legislation thereto), as amended from time to time and any
regulations promulgated thereunder.

         "ERISA Affiliate" shall mean, with respect to any Credit Party, any
trade or business (whether or not incorporated) under common control with such
Credit Party and which, together with such Credit Party, are treated as a single
employer within the meaning of Sections 414(b), (c), (m) or (o) of the IRC,
excluding the Lenders, the Collateral Agent and each other person which would
not be an ERISA Affiliate if the Collateral Agent did not own any issued and
outstanding shares of Stock of such Credit Party.

         "Event of Default" shall have the meaning set forth in Section 7.1
hereof.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and all rules and regulations promulgated thereunder.

         "Financials" shall mean the financial statements referred to in Section
4.7(a) hereof.

         "Fiscal Year" shall mean the twelve month period ending December 31.
Subsequent changes of the fiscal year of Interep shall not change the term
"Fiscal Year," unless the Required Lenders shall consent in writing to such
changes.

         "GAAP" shall mean generally accepted accounting principles in the
United States of America as in effect from time to time, except that for
purposes of the financial covenants contained in Section 5.1(h) hereof, GAAP
shall be as in effect on the date of the most recent Financials and shall be
applied in a manner consistent therewith.

                                       5

<PAGE>

         "Governmental Authority" shall mean any nation or government, any state
or other political subdivision thereof, and any agency, department or other
entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

         "Guaranteed Indebtedness" shall mean, as to any Person, any obligation
of such Person guaranteeing any Indebtedness, lease, dividend, or other
obligation ("primary obligations") of any other Person (the "primary obligor")
in any manner including, without limitation, any obligation or arrangement of
such Person (a) to purchase or repurchase any such primary obligation, (b) to
advance or supply funds (i) for the purchase or payment of any such primary
obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency or any balance sheet
condition of the primary obligor, (c) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary
obligation, or (d) to indemnify the owner of such primary obligation against
loss in respect thereof.

         "Guaranty" shall mean that certain Guaranty, dated as of the Closing
Date, executed by the Guarantors in favor of the Collateral Agent, for the
benefit of the Lenders, in the form of Exhibit B attached hereto.

         "Hazardous Substance" shall have the meaning set forth in Section 4.10
hereof.

         "Indebtedness" of any Person shall mean (i) all indebtedness of such
Person for borrowed money or for the deferred purchase price of property or
services (including, without limitation, reimbursement and all other obligations
with respect to surety bonds, letters of credit and bankers' acceptances,
whether or not matured, but not including obligations to trade creditors
incurred in the ordinary course of business), (ii) all obligations evidenced by
notes, bonds, debentures or similar instruments, (iii) all indebtedness created
or arising under any conditional sale or other title retention agreements with
respect to property acquired by such Person (even though the rights and remedies
of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property), (iv) all Capital Lease Obligations,
(v) all Guaranteed Indebtedness, (vi) all Indebtedness referred to in clause
(i), (ii), (iii), (iv) or (v) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien upon or in property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not assumed
or become liable for the payment of such Indebtedness and (vii) all liabilities
under Title IV of ERISA.

         "Interest Payment Date" shall have the meaning assigned to such term in
Section 2.6(a) hereof.

                                       6

<PAGE>

         "IRC" shall mean the Internal Revenue Code of 1986, as amended, and any
successor thereto.

         "IRS" shall mean the Internal Revenue Service, or any successor
thereto.

         "Lender" shall have the meaning set forth in the first paragraph of
this Agreement.

         "Lien" shall mean any mortgage or deed of trust, pledge, hypothecation,
assignment, deposit arrangement, lien, charge, claim, security interest,
easement or encumbrance, or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without
limitation, any title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of, or agreement to give, any financing statement perfecting a security interest
as to assets owned by the relevant Person under the Uniform Commercial Code or
comparable law of any jurisdiction).

         "Loan" shall have the meaning set forth in Section 2.1.

         "Loan Documents" shall mean this Agreement, the Notes, the Collateral
Documents and all other agreements, instruments, documents and certificates,
including, without limitation, pledges, powers of attorney, consents,
assignments, contracts, notices, and all other written matter whether
heretofore, now or hereafter executed by or on behalf of any Credit Party, and
delivered to the Lenders or the Collateral Agent, in connection with this
Agreement or the transactions contemplated hereby, other than the Warrant.

         "Material Adverse Effect" shall mean material adverse effect on (i) the
business, assets, operations, prospects or financial or other condition of the
Credit Parties, taken as a whole or (ii) Interep's or the other Credit Parties',
taken as a whole, ability to pay the Obligations in accordance with the terms
hereof and the other Loan Documents.

         "Material Contracts" shall mean (i) all of each Credit Party's and its
Subsidiaries' contracts, agreements, leases or other instruments to which such
Credit Party or its Subsidiaries is a party or by which such Credit Party, its
Subsidiaries or their properties are bound, which involve annual payments by or
to such Credit Party or its Subsidiaries of more than $1,000,000 or which are
filed as exhibits to any filing with the SEC, (ii) all of each Credit Party's
and its Subsidiaries' loan agreements, credit agreements, indentures, mortgages,
deeds of trust, pledge and security agreements, factoring agreements, letters of
credit or other debt instruments (iii) all material operating or capital leases
for equipment or conditional sales contracts which involve annual payments by or
to such Credit Party or its Subsidiaries of more than $1,000,000 to which any
Credit Party or any of its Subsidiaries is a party, (iv) all agreements pursuant
to which any Credit Party or its Subsidiaries has agreed not to compete in radio
advertising representation or to otherwise restrict its radio representation
activities, (v) all contracts for the employment of any officer or employee to
which any Credit Party or any of its Subsidiaries is a Party, (vi) each
consulting agreement which involves an aggregate

                                       7

<PAGE>

annual payment of $1,000,000 or more, (vii) any guarantees by any Credit Party
or any of its Subsidiaries, (viii) all distributor and sales agency agreements,
(ix) all National Representative Contracts to which any Credit Party or any of
its Subsidiaries is a party and which have generated, over the 12 month period
ended June 30, 2002, or for determination dates occurring after the date of this
Agreement, over the most recently ended four fiscal quarters of Interep ending
on such date, not less that $100,000 of commission revenue and (x) all other
material contracts not made in the ordinary course of business.

         "Maturity Date" shall mean November 7, 2007

         "Maximum Lawful Rate" shall have the meaning set forth in Section
2.6(d) hereof.

         "Multiemployer Plan" shall mean a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA, and to which Interep, any of its Subsidiaries or
any ERISA Affiliate is making, is obligated to make, has made or been obligated
to make, contributions on behalf of participants who are or were employed by any
of them.

         "National Representative Contract" shall mean, with respect to any
Credit Party, a contract between such Credit Party and a radio station or a
group of radio stations providing such Credit Party commissions for advertising
representation services provided.

         "Non-Guarantor Subsidiary" shall mean any existing, newly established
or acquired Subsidiary of any Credit Party, that is not a Guarantor party to
this Agreement and that has aggregate revenues, together with all other such
Subsidiaries, during any consecutive 12-month period, of less than $5,000,000.

         "Non-Recourse Debt" shall mean Indebtedness (i) as to which no Credit
Party (a) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (b) is directly or
indirectly liable (as a guarantor or otherwise), or (c) constitutes the lender;
and (ii) a default with respect to which (including any rights that the holders
thereof may have to take enforcement action against a Non-Guarantor Subsidiary)
would not permit (upon notice, lapse of time or both) any holder of any other
Indebtedness (other than the Notes issued hereby) of any Credit Party to declare
a default on such other Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity; and (iii) as to which the
lenders thereof have been notified in writing that they will not have any
recourse to the capital stock or assets of any Credit Party.

         "Notes" shall have the meaning set forth in Section 2.1.

         "Obligations" shall mean all amounts owing by the Credit Parties to the
Lenders or the Collateral Agent and any of their respective assignees pursuant
to any of the Loan Documents, including, without limitation, all principal,
interest, fees, expenses,

                                       8

<PAGE>

attorneys' fees and any other sum payable by the Credit Parties under any of the
Loan Documents.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation or any
successor thereto.

         "Pension Plan" shall have the meaning set forth in Section 4.19(a)
hereof.

         "Permitted Indebtedness" shall mean, with respect to any Credit Party,
(i) taxes or assessments or other governmental charges or levies, either not yet
due and payable or to the extent that nonpayment thereof is permitted by the
terms of this Agreement; (ii) obligations under workmen's compensation,
unemployment insurance, social security or public liability laws or similar
legislation; (iii) bids, tenders, contracts (other than contracts for the
payment of money) or leases to which any Credit Party is a party as lessee made
in the ordinary course of business; (iv) public or statutory obligations of any
Credit Party; (v) all deferred taxes, (vi) all unfunded pension fund and other
employee benefit plan obligations and liabilities but only to the extent
permitted to remain unfunded under applicable law, (vii) Capital Lease
Obligations not in excess of an aggregate of $2,500,000 at any time outstanding,
(viii) intercompany Indebtedness to any other Credit Party; provided, however,
that if Interep is the obligor on such Indebtedness, it is expressly
subordinated to the Loan, (ix) Indebtedness with respect to a performance,
surety or appeal bond incurred in the ordinary course of business and (x)
Indebtedness by any Non-Guarantor Subsidiary of Non-Recourse Debt.

         "Permitted Liens" shall mean the following: (i) Liens for taxes or
assessments or other governmental charges or levies, either not yet due and
payable or to the extent that nonpayment thereof is permitted by the terms of
this Agreement; (ii) pledges or deposits securing obligations under workmen's
compensation, unemployment insurance, social security or public liability laws
or similar legislation; (iii) pledges or deposits securing bids, tenders,
contracts (other than contracts for the payment of money) or leases to which any
Credit Party is a party as lessee made in the ordinary course of business; (iv)
Liens arising solely by virtue of any statutory or common law provision relating
to bankers' liens, rights of set-off or similar rights and remedies as to
deposit accounts or other funds maintained with a creditor depository
institution; (v) workers, mechanics, suppliers, carriers, warehousemen's or
other similar liens arising in the ordinary course of business and securing
indebtedness, not yet due and payable; (vi) deposits securing or in lieu of
surety, appeal or customs bonds in proceedings to which any Credit Party is a
party; (vii) Liens arising in the ordinary course of business in connection with
obligations that are not overdue or which are being contested in good faith and
by appropriate proceedings, including, but not limited to, Liens under bid,
performance and other surety bonds, supercedes and appeal bonds, landlord Liens
arising under leases of real property, Liens on advance or progress payments
received from customers under contracts for the sale, lease or license of goods,
software or services and upon the products being sold or licensed, in each case
securing performance of the underlying contract or the repayment of such
advances in the event final acceptance of performance under such contracts does
not occur, and Liens upon

                                        9

<PAGE>

funds collected temporarily from others pending payment or remittance on their
behalf; (viii) Liens securing Capital Lease Obligations permitted pursuant to
the definition of Permitted Indebtedness hereunder, (ix) zoning restrictions,
easements, licenses, or other restrictions on the use of real property or other
minor irregularities in title (including leasehold title) thereto, so long as
the same do not materially impair the use, value, or marketability of such real
property, leases or leasehold estates; and (x) Liens existing on the date hereof
and described on Schedule 4.9 hereto.

         "Person" shall mean any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, entity or
government (whether federal, state, county, city, municipal or otherwise,
including, without limitation, any instrumentality, division, agency, body or
department thereof).

         "Plan" shall have the meaning set forth in Section 4.19(a) hereof.

         "Pledge Agreement" shall mean the Pledge Agreement, dated as of the
Closing Date, executed by Interep, McGavern Guild, Inc., Interep New Media, Inc.
and Interep Interactive, Inc., in favor of the Collateral Agent, for the benefit
of the Lenders, pledging such Credit Parties' equity interests in other Credit
Parties.

         "Prepayment Premium" shall mean, with respect to any prepayment of
principal of the Loans, an amount equal to such principal amount prepaid
multiplied by the following percentage:

         If prepaid during the 12-month period
         ending on the following anniversary
         dates of the Closing Date                                   %
         -------------------------------------                       -
         First anniversary                                           5%

         Second anniversary                                          4%

         Third anniversary                                           3%

         Fourth anniversary                                          2%

         Fifth anniversary                                           1%

         "Required Lenders" shall mean Persons who hold at least a majority of
the outstanding principal amount of the Loans.

         "Restricted Payment" shall mean (i) the declaration of any dividend or
the incurrence of any liability to make any other payment or distribution of
cash or other property or assets in respect of any Credit Party's Stock or (ii)
any payment on account of the purchase, redemption or other retirement of any
Credit Party's Stock or any other

                                       10

<PAGE>

payment or distribution made in respect of any Stock of any Credit Party, either
directly or indirectly.

         "Retiree Welfare Plan" shall refer to any Welfare Plan providing for
continuing coverage or benefits for any participant or any beneficiary of a
participant after such participant's termination of employment, other than
continuation coverage provided pursuant to Section 4980B of the IRC and at the
sole expense of the participant or the beneficiary of the participant.

         "SEC" shall mean the U.S. Securities and Exchange Commission, or any
successor thereto.

         "Securities Act" shall mean the Securities Act of 1933, as amended, and
all rules and regulations promulgated thereunder.

         "Security Agreement" shall mean that certain Security Agreement, dated
as of the Closing Date, executed by the Credit Parties in favor of the
Collateral Agent, for the benefit of the Lenders, in the form of Exhibit C
attached hereto.

         "Spill" shall have the meaning set forth in Section 4.10 hereof.

         "Stock" shall mean all shares, options, warrants, general or limited
partnership interests, limited liability company membership interest,
participations or other equivalents (regardless of how designated) of or in a
corporation, partnership, limited liability company or equivalent entity whether
voting or nonvoting, including, without limitation, common stock, preferred
stock, or any other "equity security" (as such term is defined in Rule 3a11-1 of
the General Rules and Regulations promulgated by the SEC under the Exchange
Act).

         "Subsidiary" shall mean, with respect to any Person, (a) any
corporation of which an aggregate of more than 50% of the outstanding Stock
having ordinary voting power to elect a majority of the board of directors of
such corporation (irrespective of whether, at the time, Stock of any other class
or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time, directly or indirectly,
owned legally or beneficially by such Person and/or one or more Subsidiaries of
such Person, and (b) any partnership or other entity in which such Person and/or
one or more Subsidiaries of such Person shall have an interest (whether in the
form of voting or participation in profits or capital contribution) of more than
50%.

         "Taxes" shall have the meaning set forth in Section 2.11(a) hereof.

         "Transaction Documents" shall mean the Loan Documents and the Warrant.

         "Warrant" shall have the meaning set forth in the Recitals of this
Agreement.

                                       11

<PAGE>

         "Welfare Plan" shall mean any welfare plan, as defined in Section 3(1)
of ERISA, which is maintained or contributed to by Interep, any of its
Subsidiaries or any ERISA Affiliate.

         "Withdrawal Liability" means, at any time, the aggregate amount of the
liabilities, if any, pursuant to Section 4201 of ERISA, and any increase in
contributions pursuant to Section 4243 of ERISA with respect to all
Multiemployer Plans.

         References to this "Agreement" shall mean this Purchase Agreement,
including all amendments, modifications and supplements and any exhibits or
schedules to any of the foregoing, and shall refer to the Agreement as the same
may be in effect at the time such reference becomes operative.

         Any accounting term used in this Agreement shall have, unless otherwise
specifically provided herein, the meaning customarily given such term in
accordance with GAAP, and all financial computations hereunder shall be
computed, unless otherwise specifically provided herein, in accordance with GAAP
consistently applied. That certain terms or computations are explicitly modified
by the phrase "in accordance with GAAP" shall in no way be construed to limit
the foregoing. The words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Agreement as a whole, including the Exhibits and
Schedules hereto, as the same may from time to time be amended, modified or
supplemented, and not to any particular section, subsection or clause contained
in this Agreement. Wherever from the context it appears appropriate, each term
stated in either the singular or plural shall include the singular and the
plural, and pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, the feminine and the neuter.

2.   MAKING OF LOANS

         2.1 Making of Loans and Issuance of Warrant. Subject to the terms and
conditions set forth in this Agreement, the Lenders agree, severally and not
jointly, to make a senior secured loan ("Loan") to Interep on the Closing in an
amount equal to the amount set forth opposite each such Lender's name on
Schedule A. The aggregate principal amount of all of the Loans to be made on the
Closing Date shall be $10,000,000. Each Loan made by a Lender shall be evidenced
by a promissory note (individually, a "Note" and together with each other Note,
the "Notes"), executed by Interep and payable to such Lender, substantially in
the form of Exhibit D hereto.

         (a) Subject to the terms and conditions set forth in this Agreement,
Interep agrees to issue to the Collateral Agent, on the Closing Date, the
Warrant.

         2.2 Closing. The closing of the transactions contemplated hereby (the
"Closing") shall take place on November 7, 2002 or such date and time as shall
be mutually agreed to by the parties hereto (the "Closing Date") at the offices
of Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, New York, or such
other place as shall be mutually agreed to by the parties hereto. On the Closing
Date, Interep will

                                       12

<PAGE>

deliver to each Lender a Note payable to such Lender evidencing the Loan by
such Lender. On the Closing Date, Interep will deliver to the Collateral Agent
the Warrant and the Closing Fee.

         2.3 Optional Prepayment. Interep shall have the right, on 10 days prior
written notice to the Lenders, to voluntarily prepay all or any portion (in
multiples of not less than $500,000) of the amount outstanding on the Loans, on
a pro rata basis among each of the Lenders. Each prepayment shall be accompanied
by the payment of all accrued and unpaid interest on the Loans through the date
of payment and the applicable Prepayment Premium.

         2.4 Repayment of Loans. Interep promises to repay the entire unpaid
principal amount of, and any unpaid and accrued interest on, the Loans on the
Maturity Date.

         2.5 Use of Proceeds. The proceeds of the Loans shall be used solely for
working capital needs of the Credit Parties, Capital Expenditures permitted
under Section 5.2(k) and to pay related transaction costs, fees and expenses.

         2.6 Interest on Notes. (a) Interep shall pay, in cash, interest on the
Loans to each Lender, quarterly in arrears on the first day of each fiscal
quarter commencing on January 1, 2003, through the date of repayment in full
(each, an "Interest Payment Date"), at a rate per annum equal to 8.125%, on such
Lender's ratable share of the aggregate principal amount of the Loans.

         (b) If any payment on any Loan becomes due and payable on a day other
than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day and, with respect to payments of principal, interest
thereon shall be payable at the then applicable rate for such Loan during such
extension.

         (c) So long as any Event of Default shall be continuing, the rate of
interest applicable to the Loans shall be increased by 2% per annum above the
rate of interest otherwise applicable to the Loans.

         (d) Notwithstanding anything to the contrary set forth in this Section
2.6, if at any time until payment in full of the Loans, the interest rate
payable on any of the Loans exceeds the highest rate of interest permissible
under any law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto (the "Maximum Lawful Rate"), then in such
event and so long as the Maximum Lawful Rate would be so exceeded, the rate of
interest payable on such Loans shall be equal to the Maximum Lawful Rate;
provided, however, that if at any time thereafter the interest rate payable on
such of the Loans is less than the Maximum Lawful Rate, Interep shall continue
to pay interest thereunder at the Maximum Lawful Rate until such time as the
total interest received by the Lenders is equal to the total interest which they
would have received had the interest rate on such Loans been (but for the
operation of this paragraph) the applicable interest rate payable since the
Closing Date. Thereafter, the interest rate

                                       13

<PAGE>

payable on such Loans shall be the applicable interest rate pursuant to clauses
(a) through (c) above unless and until such rate again exceeds the Maximum
Lawful Rate, in which event this paragraph shall again apply. In no event shall
the total interest received by any Lender for any Loans pursuant to the terms
hereof exceed the amount which it could lawfully have received for such Loans
had the interest due hereunder for such Loans been calculated for the full term
thereof at the Maximum Lawful Rate. In the event the Maximum Lawful Rate is
calculated pursuant to this paragraph, such interest shall be calculated at a
daily rate equal to the Maximum Lawful Rate divided by the number of days in the
year in which such calculation is made. In the event that a court of competent
jurisdiction, notwithstanding the provisions of this Section 2.6(d), shall make
a final determination that a Lender has received interest hereunder or under any
of the Loan Documents in excess of the Maximum Lawful Rate, such Lender shall,
to the extent permitted by applicable law, promptly apply such excess first to
any interest due or accrued and not yet paid on the Loans, then to the
outstanding principal of the Loans, then to other unpaid Obligations and
thereafter shall refund any excess to Interep or as a court of competent
jurisdiction may otherwise order.

         2.7 Receipt of Payments. Interep shall make each payment on the Loans
not later than 5:00 P.M. (New York City time) on the day when due in lawful
money of the United States of America in immediately available funds to each
Lender's respective depository bank in the United States as designated by such
Lender from time to time for deposit in such Lender's depositary account. For
purposes only of computing interest on the Loans, all payments shall be applied
by each Lender to the Loans on the day payment has been credited by such
Lender's depository bank to such Lender's account in immediately available
funds.

         2.8 Application of Payments. All payments hereunder shall be applied in
the following order: (i) then due and payable or accrued interest on the Loans;
(ii) then due and payable fees and expenses; (iii) then outstanding principal of
the Loans; and (iv) then other unpaid Obligations.

         2.9 Sharing of Payments. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off,
or otherwise) on account of the Loans held by it in excess of its ratable share
of payments on account of all Loans, such Lender shall forthwith purchase from
each other Lender such participations in the Loan held by it as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each other Lender; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender, such
purchase shall be rescinded and such Lender shall repay to the purchasing Lender
the purchase price to the extent of such recovery together with an amount equal
to such Lender's ratable share (according to the proportion of (i) the amount of
such Lender's required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. Interep agrees
that any Lender so purchasing a participation from another Lender pursuant to
this Section 2.9 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of

                                       14

<PAGE>

set-off) with respect to such participation as fully as if such Lender were the
direct creditor of Interep in the amount of such participation. Interep further
agrees to make all payments on the Loans to all Lenders on a pro rata basis,
based on the principal amount of the Notes held by each.

         2.10 Access. The Collateral Agent and any of its officers, employees
and/or agents shall have the right, at their own expense prior to an Event of
Default and at Interep's expense during the continuance of an Event of Default
and during normal business hours, to visit and inspect the properties and
facilities of Interep and its Subsidiaries and to inspect, audit and make
extracts from all of Interep's and its Subsidiaries' records, files, corporate
books and books of account and to discuss the affairs, finances and accounts of
Interep and its Subsidiaries with the principal officers of Interep, all at such
reasonable times, upon reasonable notice and as often as the Collateral Agent
may reasonably request. Interep shall deliver any document or instrument
reasonably necessary for the Collateral Agent, as such Person may request, to
obtain records from any service bureau maintaining records for Interep or its
Subsidiaries. Upon the Collateral Agent's request to Interep, Interep shall
instruct its and its Subsidiaries' banking and other financial institutions to
make available to the Collateral Agent such information and records as the
Collateral Agent may reasonably request. Following the occurrence and during the
continuance of an Event of Default, all of the rights granted to the Collateral
Agent under this Section 2.10 shall also be available to each Lender.

         2.11 Taxes. (a) Interep agrees to pay any present stamp or documentary
taxes or any other sales, transfer, exercise, mortgage recording or property
taxes, charges or similar levies that arise from any payment made hereunder or
under the Notes or from the execution, sale, transfer, delivery or registration
of, or otherwise with respect to, any of the Transaction Documents.

         (b) Without prejudice to the survival of any other agreement of Interep
hereunder, the agreements and obligations of Interep contained in this Section
2.11 shall survive the payment in full of the Loans.

3.   COLLATERAL AGENT'S REPRESENTATIONS AND WARRANTIES

         The Collateral Agent makes the following representations and warranties
to Interep, each and all of which shall survive the execution and delivery of
this Agreement and the Closing hereunder:

         3.1 Investment Intention. The Collateral Agent is acquiring the Warrant
for its own account, for investment purposes and not with a view to the
distribution thereof. The Collateral Agent will not, directly or indirectly,
offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of the
Warrant or the Class A Common Stock issuable upon the exercise thereof (or
solicit any offers to buy, purchase, or otherwise acquire any of the Warrant or
the Class A Common Stock, issuable upon the exercise thereof) except in
compliance with the Securities Act.

                                       15

<PAGE>

         3.2 Accredited Investor. The Collateral Agent is an "accredited
investor" (as that term is defined in Rule 501 of Regulation D under the
Securities Act) and by reason of its business and financial experience, it has
such knowledge, sophistication and experience in business and financial matters
as to be capable of evaluating the merits and risks of the prospective
investment, is able to bear the economic risk of such investment and is able to
afford a complete loss of such investment.

4.   CREDIT PARTIES' REPRESENTATIONS AND WARRANTIES

         Each Credit Party, jointly and severally, makes the following
representations and warranties to each Lender and the Collateral Agent, each and
all of which shall survive the execution and delivery of this Agreement and the
Closing hereunder:

         4.1 Authorized and Outstanding Shares of Capital Stock. After giving
effect to the Closing, the authorized capital stock of Interep consists of
20,000,000 shares of Class A Common Stock, $0.01 par value, of which 5,308,684
shares are issued and outstanding, 10,000,000 shares of Class B Common Stock,
$0.01 par value, of which 4,241,345 shares are issued and outstanding, and
1,000,000 shares of Preferred Stock, par value $0.01 per share, of which 400,000
shares are designated as Series A Convertible Preferred Stock and of which
110,000 shares are issued and outstanding. All of such issued and outstanding
shares are validly issued, fully paid and non-assessable. Except as set forth on
Schedule 4.1, (i) there is no existing option, warrant, call, commitment or
other agreement to which Interep is a party requiring, and there are no
convertible securities of Interep outstanding which upon conversion would
require, the issuance of any additional shares of Stock of Interep or other
securities convertible into shares of equity securities of Interep, and (ii)
there are no agreements to which Interep is a party with respect to the voting
or transfer of the Stock of Interep. Except as set forth on Schedule 4.1, there
are no stockholders' preemptive rights or rights of first refusal or other
similar rights with respect to the issuance of Stock by Interep. True and
correct copies of the certificate of incorporation and by-laws of Interep have
been delivered to each Lender and the Collateral Agent.

         4.2 Authorization and Issuance of Stock. The issuance of the Warrant
has been duly authorized by all necessary corporate action and, upon delivery of
the Warrant, the Warrant will have been validly issued, free and clear of all
pledges, liens, encumbrances and preemptive rights. The issuance of the shares
of Class A Common Stock upon exercise of the Warrants has been duly authorized
by all necessary corporate action and, when issued upon such exercise, such
shares of Class A Common Stock will have been validly issued and fully paid and
non-assessable. Interep has duly reserved that number of shares of Class A
Common Stock issuable upon exercise of the Warrant for issuance pursuant to the
terms thereof.

         4.3 Securities Laws. In reliance on the investment representations
contained in Sections 3.1 and 3.2, the offer, issuance, sale and delivery of the
Warrant and the Class A Common Stock issuable upon the exercise thereof, as
provided in the

                                       16

<PAGE>

Warrant and this Agreement, are exempt from the registration requirements of the
Securities Act and all applicable state securities laws, and are otherwise in
compliance with such laws. Neither Interep nor any Person acting on its behalf
has taken or will take any action (including, without limitation, any offering
of any securities of Interep under circumstances which would require the
integration of such offering with the offering of Warrant and the Class A Common
Stock issuable upon the exercise thereof under the Securities Act and the rules
and regulations of the SEC thereunder) which might subject the offering,
issuance or sale of the Warrant and the Class A Common Stock issuable upon the
exercise thereof, to the registration requirements of Section 5 of the
Securities Act.

         4.4 Corporate Existence; Compliance with Law. Each of the Credit
Parties (i) is a corporation duly organized, validly existing and in good
standing under the laws of the state of its organization, as set forth on
Schedule 4.5; (ii) is duly qualified as a foreign corporation and in good
standing under the laws of each jurisdiction where its ownership or lease of
property or the conduct of its business requires such qualification (except for
jurisdictions in which such failure to so qualify or to be in good standing
would not have a Material Adverse Effect); (iii) has the requisite corporate
power and authority and the legal right to own, pledge, mortgage or otherwise
encumber and operate its properties, to lease the property it operates under
lease, and to conduct its business as now being conducted; (iv) has, or has
applied for, all material licenses, permits, consents or approvals from or by,
and has made all material filings with, and has given all material notices to,
all Governmental Authorities having jurisdiction, to the extent required for
such ownership, operation and conduct; (v) is in compliance with its certificate
or articles of incorporation and by-laws; and (vi) is in compliance with all
applicable provisions of law, except for such non-compliance which would not
have a Material Adverse Effect.

         4.5 Subsidiaries. There currently exist no Subsidiaries of Interep
other than as set forth on Schedule 4.5 hereto, which sets forth such
Subsidiaries, together with their respective jurisdictions of organization, and
the authorized and outstanding capital Stock of each such Subsidiary, by class
and number and percentage of each class owned by Interep or a Subsidiary of
Interep or any other Person. Except as set forth on Schedule 4.5 hereto, there
are no options, warrants, rights to purchase or similar rights covering capital
Stock for any such Subsidiary.

         4.6 Corporate Power; Authorization; Enforceable Obligations. The
execution, delivery and performance by each Credit Party of this Agreement, the
other Transaction Documents to which it is a party and all instruments and
documents to be delivered by each Credit Party and the consummation of the other
transactions contemplated by any of the foregoing: (i) are within such Credit
Party's corporate power and authority; (ii) have been duly authorized by all
necessary or proper corporate action; (iii) are not in contravention of any
provision of such Credit Party's certificate of incorporation or by-laws; (iv)
will not violate any law or regulation, or any order or decree of any court or
governmental instrumentality; (v) will not conflict with or result in the breach
or termination of, constitute a default under or accelerate any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument

                                       17

<PAGE>

to which any Credit Party is a party or by which any Credit Party or any Credit
Party's property is bound; (vi) will not result in the creation or imposition of
any Lien upon any of the property of any Credit Party other than the Liens
created pursuant to the Loan Documents; and (vii) do not require the consent or
approval of, or any filing with, any Governmental Authority or any other Person
(except (A) for those filings required by the registration rights provisions of
the Warrant and (B) to the extent previously obtained or made). At or prior to
the Closing Date, each of this Agreement and the other Transaction Documents
shall have been duly executed and delivered by each Credit Party thereto and
each shall then constitute a legal, valid and binding obligation of such Credit
Party, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors' rights and remedies generally,
and subject, as to enforceability, to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing (regardless
of whether enforcement is sought in a proceeding at law or in equity).

         4.7 Financial Statements. (a) The audited consolidated balance sheet of
Interep and its Subsidiaries as at December 31, 2001, and the related
consolidated statements of income and cash flows for the year then ended, with
the opinion thereon of Arthur Andersen, the unaudited consolidated balance sheet
of Interep and its Subsidiaries as at June 30, 2002 and the related unaudited
consolidated statements of income, and cash flows for the six months then ended,
and the unaudited consolidated balance sheet of Interep and its Subsidiaries as
at August 31, 2002 (the "Balance Sheet") and the related unaudited consolidated
statements of income for the eight months then ended, copies of which have
previously been delivered to the Lenders, have been, except as noted therein,
prepared in conformity with GAAP consistently applied throughout the periods
involved and present fairly in all material respects the consolidated financial
position of Interep and its Subsidiaries as at the dates thereof, and the
consolidated results of its operations and cash flows for the periods then
ended, subject, in the case of the interim financial statements, to normal
year-end audit adjustments and absence of footnote disclosures.

         (b) Except as set forth on Schedule 4.7, no Credit Party has any
material obligations, contingent or otherwise, including, without limitation,
liabilities for Charges, long-term leases or unusual forward or long-term
commitments which are not reflected in the Balance Sheet, other than those
incurred since August 31, 2002, in the ordinary course of business.

         (c) Except as set forth on Schedule 4.7, no dividends or other
distributions have been declared, paid or made upon any shares of capital Stock
of any Credit Party, nor have any shares of capital Stock of any Credit Party
been redeemed, retired, purchased or otherwise acquired for value by any Credit
Party since December 31, 2001.

         4.8 Property Interests. (a) No Credit Party owns any real estate. Each
Credit Party has valid leasehold interests in the leases described in Schedule
4.8 hereto, and, except as set forth on Schedule 4.8, good and marketable title
to, or valid leasehold

                                       18

<PAGE>

interests in, all of its other properties and assets free and clear of all
Liens, except Permitted Liens.

         (b)  All real property leased by each Credit Party is set forth on
Schedule 4.8. Each of such leases is valid and enforceable in accordance with
its terms (subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws affecting creditors' rights and
remedies generally, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or
in equity)) and is in full force and effect. The Credit Parties have delivered
to each Lender true and complete copies of each of such leases set forth on
Schedule 4.8 and all documents affecting the rights or obligations of the Credit
Parties, including, without limitation, any non-disturbance and recognition
agreements, subordination agreements, attornment agreements and agreements
regarding the term or rental of any of the leases. Except as set forth on
Schedule 4.8, none of the Credit Parties nor, to their knowledge, any other
party to any such lease is in default of its obligations thereunder or has
delivered or received any notice of default under any such lease, nor has any
event occurred which, with the giving of notice, the passage of time or both,
would constitute a default under any such lease.

         (c)  Except as disclosed on Schedule 4.8, no Credit Party is obligated
under or a party to, any option, right of first refusal or any other contractual
right to purchase, acquire, sell, assign or dispose of any real property owned
or leased by such Credit Party.

         4.9  Material Contracts; Indebtedness; Liens. The Credit Parties have
delivered to the Lenders and the Collateral Agent a true, correct and complete
list and description of all Material Contracts. Each Material Contract is a
valid and binding agreement of a Credit Party enforceable against such Credit
Party in accordance with its terms (subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors' rights and remedies generally, and subject, as to
enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity)), and none of the
Credit Parties has any knowledge that any Material Contract is not a valid and
binding agreement against the other parties thereto. Each Credit Party has
fulfilled all material obligations required pursuant to the Material Contracts
to have been performed by such Credit Party on its part. Except as set forth in
Schedule 4.9, none of the Credit Parties is in default or material breach, nor
to any Credit Party's knowledge is any third party in default or material
breach, under or with respect to any Material Contract. Except as set forth on
Schedule 4.9, none of the Credit Parties has any Indebtedness or Liens on its
assets except Permitted Indebtedness and Permitted Liens, respectively.

         4.10 Environmental Protection. (a) To the Credit Parties knowledge,
except as set forth on Schedule 4.10, all real property owned, leased or
otherwise operated by each Credit Party (each, a "Facility") is free of
contamination from any

                                       19

<PAGE>

substance, waste or material (i) currently identified to be toxic or hazardous
pursuant to, or which may result in liability under, any Environmental Law or
(ii) within the definition of a substance which is toxic or hazardous under any
Environmental Law, including, without limitation, any asbestos, pcb, radioactive
substance, methane, volatile hydrocarbons, industrial solvents, oil or petroleum
or chemical liquids or solids, liquid or gaseous products, or any other material
or substance which has in the past or could at any time in the future cause or
constitute a health, safety, or environmental hazard to any Person or property
or result in any Environmental Liabilities and Costs ("Hazardous Substance") of
more than $100,000 or which, in either case, could have a Material Adverse
Effect. Except as set forth on Schedule 4.10, none of the Credit Parties has
caused or suffered to occur any release, spill, migration, leakage, discharge,
spillage, uncontrolled loss, seepage, or filtration of Hazard Substances at or
from the Facility (a "Spill") which could result in Environmental Liabilities
and Costs in excess of $100,000.

         (b)  Each Credit Party has generated, treated, stored and disposed of
any Hazardous Substances in full compliance with applicable Environmental Laws,
except for such non-compliances which would not have a Material Adverse Effect.

         (c)  Each Credit Party has obtained, or has applied for, and is in full
compliance with and in good standing under all permits required under
Environmental Laws (except for such failures which would not have a Material
Adverse Effect) and none of the Credit Parties has any knowledge of any
proceedings to substantially modify or to revoke any such permit.

         (d)  To the Credit Parties knowledge, except as set forth on Schedule
4.10, there are no investigations, proceedings or litigation pending or, to any
Credit Party's knowledge, threatened affecting or against any Credit Party or
the Facilities relating to Environmental Laws or Hazardous Substances.

         (e)  Since December 31, 2001, except for communications in connection
with the matters listed on Schedule 4.10, none of the Credit Parties has
received any communication or notice (including, without limitation, requests
for information) indicating the potential of Environmental Liabilities and Costs
against any Credit Party.

         4.11 Labor Matters. (a) There are no strikes or other labor disputes
against any Credit Party pending or, to any Credit Party's knowledge,
threatened. Hours worked by and payment made to employees of the Credit Parties
have not been in material violation of the Fair Labor Standards Act or any other
applicable law dealing with such matters. All payments due from each Credit
Party on account of employee health and welfare insurance have been paid or
accrued as a liability on the books of such Credit Party. There is no organizing
activity involving any Credit Party pending or, to any Credit Party's knowledge,
threatened by any labor union or group of employees. There are no representation
proceedings pending or, to any Credit Party's knowledge, threatened with the
National Labor Relations Board, and no labor organization or group of employees
of any Credit Party has made a pending demand for recognition. There are

                                       20

<PAGE>

no complaints or charges against any Credit Party pending or, to any Credit
Party's knowledge, threatened to be filed with any federal, state, local or
foreign court, governmental agency or arbitrator based on, arising out of, in
connection with, or otherwise relating to the employment or termination of
employment by any Credit Party of any individual.

         (b)  No Credit Party is, or during the five years preceding the date
hereof was, a party to any labor or collective bargaining agreement and there
are no labor or collective bargaining agreements which pertain to employees of
any Credit Party.

         4.12 Other Ventures. Except as set forth on Schedule 4.12, none of the
Credit Parties is engaged in any joint venture or partnership with any other
Person.

         4.13 Taxes. Except as set forth on Schedule 4.13, all federal, state,
local and foreign tax returns, reports and statements required to be filed by
each Credit Party have been timely filed with the appropriate Governmental
Authority and all such returns, reports and statements are true, correct and
complete in all material respects. All Charges and other impositions due and
payable for the periods covered by such returns, reports and statements have
been paid prior to the date on which any fine, penalty, interest or late charge
may be added thereto for nonpayment thereof, or any such fine, penalty,
interest, late charge or loss has been paid. Proper and accurate amounts have
been withheld by each Credit Party from its employees for all periods in full
and complete compliance with the tax, social security and unemployment
withholding provisions of applicable federal, state, local and foreign law and
such withholdings have been timely paid to the respective governmental agencies.
None of the Credit Parties has executed or filed with the IRS or any other
Governmental Authority any agreement or other document extending, or having the
effect of extending, the period for assessment or collection of any Charges. No
tax audits or other administrative or judicial proceedings are pending or
threatened with regard to any Charges for which any Credit Party may be liable
and no assessment of Charges is proposed against any Credit Party. None of the
Credit Parties has filed a consent pursuant to IRC Section 341(f) or agreed to
have IRC Section 341(f)(2) apply to any dispositions of subsection (f) assets
(as such term is defined in IRC Section 341(f)(4)). None of the property owned
by any Credit Party is property which such company is required to treat as being
owned by any other Person pursuant to the provisions of Section 168(f)(8) of the
Internal Revenue Code of 1954, as amended, and in effect immediately prior to
the enactment of the Tax Reform Act of 1986 or is "tax-exempt use property"
within the meaning of IRC Section 168(h). None of the Credit Parties has agreed
or has been requested to make any adjustment under IRC Section 481(a) by reason
of a change in accounting method or otherwise. None of the Credit Parties has
any obligation under any written tax sharing agreement.

         4.14 No Litigation. Except as disclosed on Schedule 4.14, no action,
claim or proceeding is now pending or, to the knowledge of any Credit Party,
threatened against any Credit Party, at law, in equity or otherwise, before any
court, board, commission, agency or instrumentality of any federal, state, or
local government or of any agency or subdivision thereof, or before any
arbitrator or panel of arbitrators.

                                       21

<PAGE>

         4.15 Brokers. Except as set forth on Schedule 4.15, no broker or finder
acting on behalf of any Credit Party brought about the consummation of the
transactions contemplated pursuant to this Agreement and none of the Credit
Parties has any obligation to any Person in respect of any finder's or brokerage
fees (or any similar obligation) in connection with the transactions
contemplated by this Agreement. The Credit Parties are solely responsible for
the payment of all such finder's or brokerage fees.

         4.16 Employment Agreements. Except as set forth on Schedule 4.16, there
are no employment, consulting or management agreements covering management of
any Credit Party.

         4.17 Patents, Trademarks, Copyrights and Licenses. Each Credit Party
owns all licenses, patents, patent applications, copyrights, service marks,
trademarks and registrations and applications for registration thereof, and
trade names necessary to continue to conduct its business as heretofore
conducted by it and now being conducted by it, each of which is listed, together
with Patent and Trademark Office or Copyright Office application or registration
numbers, where applicable, on Schedule 4.17 hereto. To the Credit Parties'
knowledge, such Credit Party conducts its businesses without infringement or
claim of infringement of any license, patent, copyright, service mark,
trademark, trade name, trade secret or other intellectual property right of
others, except as set forth on Schedule 4.17 hereto. To the Credit Parties'
knowledge, there is no infringement by others of any license, patent, copyright,
service mark, trademark, trade name, trade secret or other intellectual property
right of any Credit Party, except as set forth on Schedule 4.17 hereto.

         4.18 No Material Adverse Effect. Except as set forth on Schedule 4.18,
no event has occurred since December 31, 2001 which has had or could be
reasonably expected to have a Material Adverse Effect.

         4.19 ERISA. (a) Schedule 4.19 sets forth: (i) all "employee benefit
plans", as defined in Section 3(3) of ERISA, and any other employee benefit
arrangements or payroll practices, including, without limitation, severance pay,
sick leave, vacation pay, salary continuation for disability, consulting or
other compensation agreements, retirement, deferred compensation, bonus, stock
purchase, hospitalization, medical insurance, life insurance and scholarship
programs (the "Plans") maintained by any Credit Party or to which any Credit
Party contributed or is obligated to contribute thereunder, and (ii) all
"employee pension benefit plans", as defined in Section 3(2) of ERISA (the
"Pension Plans"), maintained by any Credit Party or any of its ERISA Affiliates
to which such Credit Party or any of its ERISA Affiliates contributed or is
obligated to contribute thereunder.

         (b)  No Lender will have (i) any obligation to make any contribution to
any Multiemployer Plan or (ii) any withdrawal liability from any such
Multiemployer Plan under Section 4201 of ERISA which it would not have had if it
had not made the Loan to Interep at the Closing in accordance with the terms of
this Agreement.

                                       22

<PAGE>

          (c) The Pension Plans intended to be qualified under Section 401(a) of
the IRC are so qualified and the trusts maintained pursuant thereto are exempt
from federal income taxation under Section 501 of the IRC, and nothing has
occurred with respect to the operation of any such Pension Plans which could
cause the loss of such qualification or exemption or the imposition of any
material liability, penalty, or tax under ERISA or the IRC.

          (d) All contributions required by law or pursuant to the terms of the
Plans (without regard to any waivers granted under Section 412 of the IRC) to
any funds or trusts established thereunder or in connection therewith have been
made by the due date thereof (including any valid extension) and no accumulated
funding deficiencies exist in any of the Pension Plans.

          (e) There is no "amount of unfunded benefit liabilities" as defined in
Section 4001(a)(18) of ERISA in any of the respective Pension Plans. Each of the
respective Pension Plans are fully funded in accordance with the actuarial
assumptions used by the PBGC to determine the level of funding required in the
event of the termination of the Pension Plan and all benefit liabilities do not
exceed the assets of such Pension Plans.

          (f) There has been no "reportable event" as that term is defined in
Section 4043 of ERISA and the regulations thereunder with respect to the Pension
Plans which would require the giving of notice, or any event requiring
disclosure under Sections 4041(c)(3)(C), 4063(a) or 4068(f) of ERISA.

          (g) There is no material violation of ERISA with respect to the filing
of applicable reports, documents, and notices regarding the Plans with the
Secretary of Labor and the Secretary of the Treasury or the furnishing of such
documents to the participants or beneficiaries of the Plans.

          (h) True, correct and complete copies of the following documents, with
respect to each of the Plans, have been made available or delivered to each
Lender by the Credit Parties: (A) any plans and related trust documents, and
amendments thereto, (B) the most recent Forms 5500 (including any schedules
thereto) and the most recent actuarial valuation report, if any, (C) the most
recent IRS determination letter, if applicable, (D) summary plan descriptions,
(E) material written communications to employees relating to the Plans and (F)
written descriptions of all non-written agreements relating to the Plans.

          (i) There are no material pending actions, claims or lawsuits which
have been asserted or instituted against the Plans, the assets of any of the
trusts under such Plans or the Plan sponsor or the Plan administrator, or
against any fiduciary of the Plans with respect to the operation of such Plans
(other than routine benefit claims), nor does any Credit Party have knowledge of
facts which could form the basis for any such claim or lawsuit.

                                       23

<PAGE>

          (j)  All amendments and actions required to bring the Plans into
conformity in all material respects with all of the applicable provisions of
ERISA and other applicable laws have been made or taken except to the extent
that such amendments or actions are not required by law to be made or taken
until a date after the Closing Date.

          (k)  The Plans have been maintained, in all material respects, in
accordance with their terms and with all provisions of ERISA (including rules
and regulations thereunder) and other applicable Federal and state law, and no
Credit Party or "party in interest" or "disqualified person" with respect to the
Plans has engaged in a "prohibited transaction" within the meaning of Section
4975 of the IRC or Section 406 of ERISA.

          (l)  None of the Credit Parties or any ERISA Affiliate has (i)
terminated any Pension Plan or (ii) incurred any outstanding liability under
Section 4062 of ERISA to the PBGC or to a trustee appointed under Section 4042
of ERISA for which liability remains unsatisfied.

          (m)  None of the Credit Parties or any ERISA Affiliate maintains
retired life and retired health insurance plans which are Welfare Plans and
which provide for continuing benefits or coverage for any participant or any
beneficiary of a participant except as may be required under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") and at the
expense of the participant or the participant's beneficiary. Each Credit Party
and all ERISA Affiliates which maintains a Welfare Plan has complied with the
notice and continuation requirements of COBRA and the regulations thereunder.

          (n)  None of the Credit Parties or any ERISA Affiliate has
contributed or been obligated to contribute to a Multiemployer Plan as of the
Closing.

          (o)  None of the Credit Parties or any ERISA Affiliate has withdrawn
in a complete or partial withdrawal from any Multiemployer Plan prior to the
Closing Date, nor has any of them incurred any liability due to the termination
or reorganization of a Multiemployer Plan.

          (p)  None of the Credit Parties, any ERISA Affiliate or any
organization to which any Credit Party is a successor or parent corporation,
within the meaning of Section 4069(b) of ERISA, has engaged in any transaction,
within the meaning of Section 4069 of ERISA.

          4.20 SEC Documents. Interep has made available to each Lender and the
Collateral Agent a true and complete copy of each report, schedule, registration
statement and definitive proxy statement filed by Interep with the SEC since
December 31, 2001 and prior to the date of this Agreement (the "SEC Documents"),
which are all the documents (other than preliminary material) that Interep was
required to file with the SEC since such date. As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the
Securities Act or the Exchange Act, as the

                                       24

<PAGE>

case may be, and the rules and regulations of the SEC thereunder applicable to
such SEC Documents, and none of the SEC Documents contained any untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

          4.21 Ordinary Course of Business. Except as set forth on Schedule 4.21
or in response to the events described therein, since December 31, 2001, each
Credit Party has conducted its operations only in the ordinary course of
business consistent with past practice.

          4.22 Insurance. Schedule 4.22 hereto contains a complete and correct
list of all policies of insurance of any kind or nature covering each Credit
Party, including, without limitation, policies of life, fire, theft, employee
fidelity and other casualty and liability insurance, indicating the type of
coverage, name of insured, the insurer, the premium, the expiration date of each
policy and the amount of coverage, and such policies are in full force and
effect. Complete and correct copies of each such policy have been furnished or
made available to the Lenders and the Collateral Agent. Such policies are in
amounts customary for the industry in which the Credit Parties operate.

          4.23 Accounts Receivable. All accounts receivable of each Credit Party
as shown on the Balance Sheet are collectible in the ordinary course of business
by such Credit Party, net of the reserves for bad debts shown on the Balance
Sheet.

          4.24 Minute Books. The minute books of each Credit Party, as
previously made available to each Lender, accurately reflect all formal
corporate action of the stockholders and Board of Directors of such Credit
Party.

          4.25 Full Disclosure. No information contained in this Agreement, any
other Transaction Document, the Financials or any written statement furnished by
or on behalf of any Credit Party pursuant to the terms of this Agreement
contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements contained herein or therein not misleading
in light of the circumstances under which made.

5.   COVENANTS

          5.1  Affirmative and Financial Covenants. Each Credit Party covenants
and agrees, jointly and severally, that from and after the date hereof (except
as otherwise provided herein, or unless the Required Lenders have given their
prior written consent) so long as any principal amount under the Loans is
outstanding, it shall:

          (a)  Books and Records. Keep adequate records and books of account
with respect to its business activities, in which proper entries, reflecting all
of its financial

                                       25

<PAGE>

transactions are made in a manner sufficient to permit preparation of financial
statements in accordance with GAAP.

          (b)  Financial and Business Information.

               (i)   Monthly Information. Commencing with the month ending
October 31, 2002, deliver to each Lender as soon as practicable after the end of
each month, but in any event within 30 days thereafter (except after the end of
December and January for which delivery will in any event be within 60 days
thereafter): (A) a copy of the unaudited internal consolidated revenue and
expense report of Interep and its Subsidiaries for such month and for the
portion of such year ending with such month, (B) an accounts receivable report
listing all accounts receivable of the Credit Parties as at the end of such
month, including the amount of each such account receivable, the name, address
and other contact information of the obligor with respect to each such account
receivable and the aging of each such account receivable and (C) a weekly
pacings chart, if generated, including comparative information for prior years.

               (ii)  Quarterly Information. Deliver to each Lender as soon as
practicable after the end of each of the first three quarterly fiscal periods in
each Fiscal Year of Interep, but in any event within 45 days thereafter, (A) an
unaudited consolidated balance sheet of Interep and its Subsidiaries as at the
end of such quarter, (B) unaudited consolidated statements of income, retained
earnings and cash flows of Interep and its Subsidiaries for such quarter and (in
the case of the second and third quarters) for the portion of the Fiscal Year
ending with such quarter, setting forth in comparative form in each case the
projected consolidated figures for such period and the actual consolidated
figures for the comparable period of the prior Fiscal Year, (C) the Backlog
Amount Report as at the end of such quarter and (D) a report detailing any
changes of more than $1,000,000 in the Backlog Amount since the previous Backlog
Amount Report delivered to the Lenders. Such financial statements shall be (1)
prepared in accordance with GAAP consistently applied subject to normal year-end
audit adjustments and absence of footnote disclosures and (2) certified by the
principal financial or accounting officer of Interep.

               (iii) Annual Information. Deliver to each Lender as soon as
practicable after the end of each Fiscal Year of Interep, but in any event
within 90 days thereafter, (A) an audited consolidated balance sheet of Interep
and its Subsidiaries, if any, as at the end of such year, and (B) audited
consolidated statements of income, retained earnings and cash flows of Interep
and its Subsidiaries, if any, for such year; setting forth in each case in
comparative form the figures for the previous year. Such statements shall be (1)
prepared in accordance with GAAP consistently applied, (2) in reasonable detail
and (3) certified by or such other firm of independent certified public
accountants of recognized national standing selected by Interep and reasonably
acceptable to the Required Lenders.

               (iv)  Filings. Deliver to each Lender, promptly upon their
becoming available, one copy of each report, notice or proxy statement sent by
Interep to its stockholders generally, and of each regular or periodic report
(pursuant to the

                                       26

<PAGE>

Exchange Act) and any registration statement, prospectus or other writing (other
than transmittal letters) (including, without limitation, by electronic means)
pursuant to the Securities Act filed by Interep with (i) the SEC or (ii) any
securities exchange on which shares of common stock of Interep are listed.

               (v)  Projections. Deliver to each Lender within 15 days prior to
the beginning of each Fiscal Year projected consolidated income statements of
Interep and its Subsidiaries, if any, for such Fiscal Year, on a quarterly basis
together with appropriate supporting details.

               (vi) Notices; Other Information. Promptly notify the Collateral
Agent, and following the occurrence and during the continuance of an Event of
Default, each Lender in writing of any (i) termination or notice of termination
of any National Representative Contract that is a Material Contract or (ii)
threat, notice or commencement of any litigation, investigation or other
proceeding by any Person with respect to any Credit Party involving a claim for
an aggregate amount of $1,000,000 or more or a claim that is otherwise material
to such Credit Party. If requested by the Collateral Agent, or following the
occurrence and during the continuance of an Event of Default any Lender, the
Credit Parties will deliver to the Collateral Agent or such Lender, as the case
may be, such other information respecting any Credit Party's business, financial
condition or prospects as the Collateral Agent or such Lender may, from time to
time, reasonably request.

          (c)  Communication with Accountants. Following the occurrence and
during the continuance of an Event of Default, authorize each Lender to
communicate directly with its independent certified public accountants and tax
advisors and authorizes those accountants to disclose to such Lender any and all
financial statements and other supporting financial documents and schedules
including copies of any management letter with respect to the business,
financial condition and other affairs of each Credit Party. At or before the
Closing Date, the Credit Parties shall deliver a letter addressed to such
accountants and tax advisors instructing them to comply with the provisions of
this Section 5.1(c).

          (d)  Tax Compliance. Pay all transfer, excise or similar taxes (not
including income or franchise taxes) in connection with the issuance, delivery
or transfer by Interep to the Collateral Agent of the Warrant and the Class A
Common Stock issuable upon the exercise thereof, and shall indemnify and save
the Collateral Agent harmless without limitation as to time against any and all
liabilities with respect to such taxes. No Credit Party shall be responsible for
any taxes in connection with the transfer of the Warrant and the Class A Common
Stock issuable upon the exercise thereof by any holder thereof. The obligations
of the Credit Parties under this Section 5.1(d) shall survive the payment,
prepayment or redemption of the Loans and the termination of this Agreement.

          (e)  Insurance. Maintain insurance covering, without limitation, fire,
theft, burglary, public liability, property damage, product liability, workers'

                                       27

<PAGE>

compensation, directors' and officers' insurance and insurance on all property
and assets material to the operation of its business, all in amounts customary
for its industry. Each Credit Party shall pay all insurance premiums payable by
it.

          (f)  Employee Plans. (i) With respect to other than a Multiemployer
Plan, for each Plan and Pension Plan intended to be qualified under Section
401(a) of the IRC hereafter adopted or maintained by any Credit Party or any
ERISA Affiliate, (A) seek, or cause its ERISA Affiliates to seek, and receive
determination letters from the IRS to the effect that such Plan or Pension Plan
is qualified within the meaning of Section 401(a) of the IRC; and (B) from and
after the adoption of any such Plan or Pension Plan, cause such plan to be
qualified within the meaning of Section 401(a) of the IRC and to be administered
in all material respects in accordance with the requirements of ERISA and
Section 401(a) of the IRC.

               (ii)  With respect to each Welfare Plan hereafter adopted or
maintained by any Credit Party or any ERISA Affiliate, to the extent applicable,
comply, or cause its ERISA Affiliates to comply, with the notice and
continuation coverage requirements of Section 4980B of the IRC and the
regulations thereunder.

               (iii) Shall not, directly or indirectly, and shall not permit any
ERISA Affiliate to directly or indirectly by reason of an amendment or
amendments to, or the adoption of, one or more Pension Plans, permit the present
value of all benefit liabilities, as defined in Title IV of ERISA, (using the
actuarial assumptions utilized by the PBGC upon termination of a plan) to exceed
the fair market value of assets allocable to such benefits by more than $50,000,
or to increase to the extent security must be provided to any Pension Plan not
under Section 401(a)(29) of the IRC. The Credit Parties shall not establish or
become obligated to any new Retiree Welfare Plan, which would result in the
present value of future liabilities under any such plans to exceed $50,000.
Neither the Credit Parties nor any of their ERISA Affiliates shall establish or
become obligated to any new unfunded Pension Plan, which would result in the
present value of future liabilities under any such plans to exceed $50,000. The
Credit Parties shall not directly or indirectly, and shall not permit any ERISA
Affiliate to (a) satisfy any liability under any Pension Plan by purchasing
annuities from an insurance company or (b) invest the assets of any Pension Plan
with an insurance company, unless, in each case, such insurance company is rated
AA by Standard & Poor's Corporation and the equivalent by each other nationally
recognized rating agency at the time of the investment.

               (iv)  The Credit Parties and any ERISA Affiliate shall not
contribute or become obligated to contribute to any Multiemployer Plan.

          (g)  Compliance with Law. Comply with all laws, including
Environmental Laws, applicable to it, except where the failure to comply would
not be reasonably likely to result in a Material Adverse Effect.

                                       28

<PAGE>

          (h) Financial Covenants. Maintain on a consolidated basis:

              (i)    Minimum EBITDA. EBITDA for Interep and its Subsidiaries,
measured on a fiscal quarter-end basis for the 12-month period ending on such
fiscal quarter end of not less than the amount set forth below for the
corresponding 12-month period:

          12-Month Period Ending                         Amount
          ----------------------                         ------
          September 30, 2002                          $10,000,000
          December 31, 2002 and
            each fiscal quarter thereafter            $12,500,000

              (ii)   Minimum Cash and Cash Equivalents. An aggregate amount of
cash and Cash Equivalents at the end of each month of not less that $7,000,000.

              (iii)  Minimum Accounts Receivable. A balance of Eligible Accounts
Receivable of the Credit Parties, measured as at the end of each fiscal quarter,
of not less than the amount set forth below for the corresponding aging of the
Eligible Accounts Receivable as of such date:

          Accounts Receivable Aged Less than        Balance Amount
          ----------------------------------        --------------
                       151 days                       $15,000,000
                       121 days                       $11,250,000
                        91 days                       $ 7,500,000

              (iv)   Minimum Contract Backlog.  An aggregate Backlog Amount for
all National Representative Contracts of the Credit Parties, measured as at the
end of each fiscal quarter, of not less than $200,000,000.

          (i) Maintenance of Existence and Conduct of Business. (i) Do or cause
to be done all things necessary to preserve and keep in full force and effect
its corporate existence, and its rights and franchises; (ii) at all times
maintain, preserve and protect all of its patents, material trademarks and trade
names, and preserve all the remainder of its material assets, in use or useful
in the conduct of its business and keep the same in good repair, working order
and condition (taking into consideration ordinary wear and tear) and from time
to time make, or cause to be made, all needful and proper repairs, renewals and
replacements, betterments and improvements thereto consistent with industry
practices and (iii) continue to conduct business solely in its existing lines of

                                       29

<PAGE>

business and businesses related thereto including the broader media advertising
representation business.

          (j) Board Observer. Provide the Required Lenders with the right to
designate one observer, without voting rights, who will be entitled to attend,
but not participate in, all meetings of Interep's Board of Directors (including
any committees thereof); provided, however, that Interep, in its sole
discretion, may exclude such observer from any meeting or portion thereof when
such observer's attendance would result in a breach of a confidentiality
obligation of Interep. Any observer designated by the Required Lenders shall be
entitled to notice of all meetings of Interep's Board of Directors (including
committee meetings) and to all information provided to directors. Interep shall
have no obligation for any expenses incurred by any such observer.

          (k) Additional Guarantors. If at any time all Non-Guarantor
Subsidiaries have aggregate revenues of $5,000,000 or more during any
consecutive 12-month period, then Interep shall promptly designate in writing to
the Collateral Agent one or more such Non-Guarantor Subsidiaries to become
parties to the Loan Documents pursuant to this Section 5.1(k), such that all
remaining undesignated Non-Guarantor Subsidiaries shall have aggregate revenues
of less than $5,000,000 during any consecutive 12-month period. If Interep fails
to designate Non-Guarantor Subsidiaries pursuant to the preceding sentence, the
Collateral Agent may so designate the Non-Guarantor Subsidiaries pursuant to the
preceding sentence. Each Credit Party agrees to cause each Subsidiary designated
pursuant to this Section 5.1(k) (i) to execute a supplement, amendment or
joinder or otherwise become a party to the Guaranty, this Agreement and any
other Loan Document identified by the Collateral Agent and (ii) to take such
actions necessary or advisable to grant to the Collateral Agent for the benefit
of the Lenders, a perfected security interest in the Collateral (including the
equity securities of, or owned by, such Subsidiary) with respect to such
Subsidiary, including the filing of UCC financing statements in such
jurisdictions as may be required by the Loan Documents or by law or as may be
reasonably requested by the Collateral Agent.

          5.2 Negative Covenants. Each Credit Party covenants and agrees that
from and after the date hereof (except as otherwise provided herein, or unless
the Required Lenders have given their prior written consent) so long as any
principal amount is outstanding under the Loans, it shall not:

          (a) Permitted Acquisitions or Investments. Directly or indirectly in
any transaction or related series of transactions, acquire or invest in, whether
for cash, debt, Stock, or other property or assets or by guaranty of any
obligation, any assets or business of any Person other than (i) acquisitions by
any Credit Party from another Credit Party or investments therein, (ii) buyouts
by the Credit Parties of national representative contracts with any radio
station or group of radio stations from another national representative, (iii)
acquisitions, other than those described in clause (ii) above, involving an
aggregate purchase price of not more than $2,500,000 in any Fiscal Year or (iv)
investments in Cash Equivalents.

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<PAGE>

               (b) Sales of Assets; Liquidation. (i) Sell, transfer, convey or
otherwise dispose of any assets or properties or (ii) liquidate, dissolve or
wind up any Credit Party except for transfers to the Credit Parties, whether
voluntary or involuntary; provided, however, that the foregoing shall not
prohibit (i) the sale of inventory in the ordinary course of business, (ii) the
sale of surplus or obsolete equipment and fixtures, (iii) transfers resulting
from any casualty or condemnation of assets or properties, or (iv) sales of any
assets other than accounts receivable, including National Representation
Contracts of any Credit Party.

               (c) Employee Loans. Make or accrue any loans or other advances of
money to any employee of any Credit Party, other than (i) loans to employees
used for job related moving expenses of such employees in an aggregate amount
outstanding not to exceed $500,000 at any time and (ii) loans to employees
(other than the loans described in clause (i) above) in the ordinary course of
business in an aggregate amount outstanding not to exceed $100,000 at any one
time.

               (d) Transactions with Affiliates. Enter into or be a party to any
transaction with any Affiliate of any Credit Party, except (i) transactions
expressly permitted hereby, (ii) transactions in the ordinary course of and
pursuant to the reasonable requirements of the Credit Parties' business and upon
fair and reasonable terms that are fully disclosed to the Lenders and are no
less favorable to any Credit Party than would be obtained in a comparable
arm's-length transaction with a Person not an Affiliate of a Credit Party, (iii)
transactions between the Credit Parties, (iv) payment of compensation to
employees and directors' fees, (v) sales of capital stock of Interep to any
Affiliate that do not, individually or in the aggregate, result in a Change of
Control, (vi) any of the transactions described in Interep's July 22, 2002 Proxy
Statement under the caption "Certain Relationships and Related Transactions" and
(vii) any purchases of Interep capital stock by Interep's Stock Growth Plan,
provided that the funds for such purchases are employee funds.

               (e) Indebtedness. Incur or suffer to exist any Indebtedness
except: (i) Indebtedness existing on the date hereof and listed on Schedule 4.9
and refinancings thereof which do not result in an increase in the then
outstanding principal amount thereof and which do not have maturity dates or
require principal payments thereunder prior to the Maturity date; (ii) Permitted
Indebtedness; (iii) Indebtedness owing by any Credit Party to another Credit
Party, (iv) Indebtedness of the Credit Parties with respect to the buyouts of
national representative contracts permitted pursuant to Section 5.2(a) not
exceeding the then outstanding and unpaid aggregate purchase price payable by
the Credit Parties with respect to all such national representative contracts,
(v) indemnification obligations of the Credit Parties in favor of radio stations
incurred in the ordinary course in connection with the buyout of national
representative contracts from Katz Media Group, Inc. and its subsidiaries,
permitted pursuant to Section 5.2(a), (vi) Indebtedness evidenced by this
Agreement, the Notes and the other Loan Documents and (vii) Indebtedness of the
Credit Parties other than described in clauses (i) through (vi) above, not
exceeding $5,000,000 in aggregate principal outstanding at any time, so long

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<PAGE>

as such Indebtedness is unsecured and is subordinated to the Obligations in form
and substance satisfactory to the Required Lenders.

               (f) Liens. Incur or suffer to exist any Liens on any assets of
any Credit Party, whether now owned or hereafter acquired, except Permitted
Liens.

               (g) Restricted Payments. Directly or indirectly make any
Restricted Payments or prepay, redeem, defease, purchase or otherwise acquire
any Indebtedness of any Credit Party other than the Obligations, other than (i)
payment of non-cash (i.e., "PIK") dividends payable pursuant to the terms of
Interep's Series A Convertible Preferred Stock or any other series or class of
capital stock of Interep and (ii) payment of dividends by a Credit Party other
than Interep to another Credit Party.

               (h) Mergers and Subsidiaries. (i) Directly or indirectly, by
operation of law or otherwise, merge with, consolidate with, or otherwise
combine with any Person other than another Credit Party, provided that in any
merger or combination involving Interep, Interep is the surviving entity in such
transaction or (ii) create a Subsidiary that is not a Non-Guarantor Subsidiary,
unless the Credit Parties and such Subsidiary shall have executed such documents
and taken such actions as may be required under Section 5.1(k) hereof.

               (i) Management Compensation. Increase the salary and bonus in any
calendar year of the officers of any Credit Party, except consistent with past
practices of such Credit Party.

               (j) Amendment to Certificate of Incorporation and By-Laws.
Authorize adopt or approve any amendment to the certificate of incorporation or
the by-laws of any Credit Party that would materially adversely affect the
rights and remedies of the Lenders or the Collateral Agent under this Agreement,
it being agreed that any increase in the number of authorized shares of common
stock of such Credit Party or the authorization or any increase in the number of
any other class of capital stock of such Credit Party would not be so materially
adverse.

               (k) Capital Expenditures. Permit Capital Expenditures by all
Credit Parties in the aggregate in any Fiscal Year to exceed $2,000,000.

6.        CONDITIONS PRECEDENT

               6.1 Conditions Precedent. The obligation of each Lender to make
the Loans pursuant to Section 2.1 hereof, is subject to the condition that such
Lender shall have received, on the Closing Date, the following, each dated the
Closing Date unless otherwise indicated, in form and substance satisfactory to
such Lender and the Collateral Agent:

               (a) Favorable opinions of Salans, counsel to the Credit Parties,
substantially in the form attached hereto as Exhibit E, it being understood that
to the

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<PAGE>

extent that such opinion of counsel to the Credit Parties shall rely upon any
other opinion of counsel, each such other opinion shall be in form and substance
reasonably satisfactory to the Lenders and shall provide that the Lenders may
rely thereon.

               (b) Resolutions of the board of directors of each Credit Party,
certified by the Secretary or Assistant Secretary of such Credit Party, as of
the Closing Date, to be duly adopted and in full force and effect on such date,
authorizing (i) the consummation of each of the transactions contemplated by
this Agreement and (ii) specific officers to execute and deliver this Agreement
and each other Transaction Document to which it is a party.

               (c) Governmental certificates, dated the most recent practicable
date prior to the Closing Date, with telegram updates where available, showing
that each Credit Party is organized and in good standing in the state of its
organization and is qualified as a foreign corporation and in good standing in
all other jurisdictions in which it is qualified to transact business.

               (d) A copy of the certificate of incorporation and all amendments
thereto of each Credit Party, certified as of a recent date by the Secretary of
State of the state of its organization, and copies of each Credit Party's
by-laws, certified by the Secretary or Assistant Secretary of such Credit Party
as true and correct as of the Closing Date.

               (e) The letter from the Credit Parties to their accountants
referred to in Section 5.1(c).

               (f) Each of the Notes duly executed by Interep.

               (g) Each of the Collateral Documents, duly executed by the
parties thereto.

               (h) The Warrant to be issued to the Collateral Agent duly
executed by Interep.

               (i) UCC-1 financing statements reflecting each Credit Party as
the debtor in favor of the Collateral Agent, for the benefit of the Lenders, in
form and substance satisfactory to the Collateral Agent.

               (j) Certificates of the Secretary or an Assistant Secretary of
each Credit Party , dated the Closing Date, as to the incumbency and signatures
of the officers of such Credit Party executing this Agreement, the Notes, the
Warrant, each other Transaction Document to which it is a party and any other
certificate or other document to be delivered pursuant hereto or thereto,
together with evidence of the incumbency of such Secretary or Assistant
Secretary.

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<PAGE>

               (k) Certificate of the Chairman of the Board or the Senior Vice
President of each Credit Party, dated the Closing Date, stating that all of the
representations and warranties of such Credit Party contained herein or in the
other Transaction Documents are true and correct on and as of the Closing Date
as if made on such date and that no breach of any covenant contained in Section
5 has occurred or would result from the Closing hereunder.

               6.2 Additional Conditions. The obligation of each Lender to make
the Loans pursuant to Section 2.1 is subject to the additional conditions
precedent that:

               (a) Such Lender shall have received evidence that the insurance
policies provided for in Section 4.22 are in full force and effect, certified by
the insurer thereof.

               (b) The Credit Parties shall have paid all reasonable fees and
expenses of Lenders' counsel, Weil, Gotshal & Manges LLP.

               (c) The Credit Parties shall have paid the Closing Fee and all
fees required to be paid by them pursuant to Section 10.2 for which the Credit
Parties shall have received an invoice on or prior to the Closing Date.

               (d) Except as disclosed pursuant to Section 4, there shall not
have occurred any event or condition since December 31, 2001 which could have a
Material Adverse Effect.

               (e) All of the representations and warranties of each Credit
Party contained herein or in the other Transaction Documents shall be true and
correct on and as of the Closing Date as if made on such date and no breach of
any covenant contained in Section V shall have occurred or would result from the
Closing hereunder.

               (f) The Closing shall have occurred no later than November 8,
2002.

               (g) All required consents and approvals from any third parties to
consummate the transactions contemplated hereby shall have been obtained.

7.       EVENTS OF DEFAULT; RIGHTS AND REMEDIES

               7.1 Events of Default. The occurrence of any one or more of the
following events (regardless of the reason therefor) shall constitute an "Event
of Default" hereunder and under the Notes:

               (a) Any Credit Party shall fail to make any payment of principal
of, or interest on or any other amount owing in respect of, the Loans, or any of
the other Obligations when due and payable or declared due and payable which, in
the case of interest, shall have remained unremedied for a period of 2 Business
Days and in the case of any amount other than principal or interest, shall have
remained unremedied for a period of 10 days.

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<PAGE>

               (b) Any Credit Party shall fail or neglect to perform, keep or
observe any of the provisions of Sections 5.1(h) or 5.2 hereof.

               (c) Any Credit Party shall fail or neglect to perform, keep or
observe any other provision of this Agreement or of any of the other Loan
Documents, and the same shall remain unremedied for a period of 30 days after
Interep shall receive written notice of any such failure from any Lender or the
Collateral Agent.

               (d) A default shall occur under any other agreement, document or
instrument to which any Credit Party is a party or by which or any property of
any Credit Party is bound, and such default (i) involves the failure to make any
payment (whether of principal, interest or otherwise) due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) in respect of
any Indebtedness of any Credit Party in an aggregate amount exceeding
$1,000,000, or (ii) causes (or permits any holder of such Indebtedness or a
trustee to cause) such Indebtedness or a portion thereof in an aggregate amount
exceeding $1,000,000, to become due prior to its stated maturity or prior to its
regularly scheduled dates of payment.

               (e) Any representation or warranty herein or in any Loan Document
or in any written statement pursuant thereto or hereto, report, financial
statement or certificate made or delivered to any Lender by any Credit Party
pursuant hereto or thereto shall be untrue or incorrect in any material respect,
as of the date when made.

               (f) Any of the assets of a value of $1,000,000 or more of any
Credit Party shall be attached, seized, levied upon or subjected to a writ or
distress warrant, or come within the possession of any receiver, trustee,
custodian or assignee for the benefit of creditors of any Credit Party and shall
remain unstayed or undismissed for 60 consecutive days; or any Credit Party
shall have concealed, removed or permitted to be concealed or removed, any part
of its property, with intent to hinder, delay or defraud its creditors or any of
them or made or suffered a transfer of any of its property or the incurring of
an obligation which may be fraudulent under any bankruptcy, fraudulent
conveyance or other similar law.

               (g) A case or proceeding shall have been commenced against any
Credit Party in a court having competent jurisdiction seeking a decree or order
in respect of any Credit Party (i) under title 11 of the United States Code, as
now constituted or hereafter amended, or any other applicable federal, state or
foreign bankruptcy or other similar law, (ii) appointing a custodian, receiver,
liquidator, assignee, trustee or sequestrator (or similar official) of any
Credit Party or of any substantial part of its or their properties, or (iii)
ordering the winding-up or liquidation of the affairs of any Credit Party and
such case or proceeding shall remain undismissed or unstayed for 60 consecutive
days or such court shall enter a decree or order granting the relief sought in
such case or proceeding.

               (h) any Credit Party shall (i) file a petition seeking relief
under title 11 of the United States Code, as now constituted or hereafter
amended, or any other

                                       35

<PAGE>

applicable federal, state or foreign bankruptcy or other similar law, (ii)
consent to the institution of proceedings thereunder or to the filing of any
such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee or sequestrator (or similar official) of
any Credit Party's or of any substantial part of any Credit Party properties,
(iii) fail generally to pay its debts as such debts become due, or (iv) take any
corporate action in furtherance of any such action.

               (i) Final judgment or judgments (after the expiration of all
times to appeal therefrom) for the payment of money in excess of $1,000,000 in
the aggregate shall be rendered against any Credit Party and the same shall not
be (i) fully covered by insurance, or (ii) vacated, stayed, bonded, paid or
discharged for a period of 30 days.

               (j) (i) With respect to any Plan, a prohibited transaction within
the meaning of Section 4975 of the IRC or Section 406 of ERISA occurs which in
the reasonable determination of the Agent could result in direct or indirect
liability to any Credit Party, (ii) with respect to any Title IV Plan, the
filing of a notice to voluntarily terminate any such plan in a distress
termination, (iii) with respect to any Multiemployer Plan, any Credit Party or
any ERISA Affiliate shall incur any Withdrawal Liability, (iv) with respect to
any Pension Plan subject to Section 412 of the Code or Section 302 of ERISA, any
Credit Party or any ERISA Affiliate shall incur an accumulated funding
deficiency or request a funding waiver from the IRS, or (v) with respect to any
Title IV Plan or Multiemployer Plan which has an ERISA Event not described in
clauses (ii) - (iv) hereof, in the reasonable determination of the Required
Lenders there is a reasonable likelihood for termination of any such plan by the
PBGC; provided, however, that the events listed in clauses (i)-(v) hereof shall
constitute Events of Default only if the liability, deficiency or waiver request
of any Credit Party or any ERISA Affiliate, whether or not assessed, exceeds
$1,000,000 in any case set forth in (i) - (v) above, or exceeds $1,000,000 in
the aggregate for all such cases.

               7.2 Remedies. If any Event of Default specified in Section 7.1
shall have occurred and be continuing, the Required Lenders may, without notice,
declare all Obligations to be forthwith due and payable, whereupon all such
Obligations shall become and be due and payable, without presentment, demand,
protest or further notice of any kind, all of which are expressly waived by the
Credit Parties; provided, however, that upon the occurrence of an Event of
Default specified in Section 7.1(f), (g) or (h) hereof, such Obligations shall
become due and payable without declaration, notice or demand by any Lender.

               Any Lender may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in its best interests, including any action
(or the failure to act) pursuant to the Loan Documents.

               7.3 Waivers by the Credit Parties. Except as otherwise provided
for in this Agreement and applicable law, the Credit Parties waive (i)
presentment, demand and protest and notice of presentment, dishonor notice of
intent to accelerate and notice of

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<PAGE>

acceleration, (ii) all rights to notice and a hearing prior to Lender's taking
possession or control of, or to Lender's replevy, attachment or levy upon, the
Collateral or any bond or security which might be required by any court prior to
allowing such Lender to exercise any of their remedies, and (iii) the benefit of
all valuation, appraisal and exemption laws. The Credit Parties acknowledge that
they have been advised by counsel of its choice with respect to this Agreement,
the other Loan Documents and the transactions evidenced by this Agreement and
the other Loan Documents.

               7.4 Right of Set-Off. Upon the occurrence and during the
continuance of any Event of Default, each Lender is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other indebtedness at any time owing by such
Lender to or for the credit or the account of Interep against any and all of the
obligations of Interep now or hereafter existing under this Agreement and the
Notes held by such Lender irrespective of whether or not Interep shall have made
any demand under this Agreement or the Notes and although such obligations may
be unmatured. Each Lender agrees promptly to notify Interep after any such
set-off and application made by such Lender; provided, however, that the failure
to give such notice shall not affect the validity of such set-off and
application. The rights of the Lenders under this Section are in addition to
other rights and remedies (including, without limitation, other rights of
set-off) which the Lenders may have.

8.       INDEMNIFICATION

               Each Credit Party agrees to indemnify and hold harmless each
Lender, the Collateral Agent and their Affiliates and their respective officers,
directors and employees from and against any losses, liabilities, obligations,
damages, penalties, actions, proceedings, judgments, suits, claims, costs, fees,
expenses and disbursements (including, without limitation, reasonable attorneys'
fees and disbursements) of any kind ("Losses") which may be imposed upon,
incurred by or asserted against such Lender, the Collateral Agent or such other
indemnified Persons as a result of such Lender or the Collateral Agent having
entered into this Agreement or any of the other Loan Documents or relating to or
arising out of any untrue representation, breach of warranty or failure to
perform any covenants or agreement by any Credit Party contained herein or in
any certificate or document delivered pursuant hereto or arising out of, under
or pursuant to any Environmental Law applicable to any Credit Party or any
Hazardous Materials located at, on, under, or Released from any Facility or by
any Credit Party or otherwise relating to or arising out of the transactions
contemplated hereby; provided, however, that no Credit Party shall be liable for
such indemnification to such indemnified Person to the extent that any such
Losses result from such indemnified Person's gross negligence or willful
misconduct.

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<PAGE>

9.       COLLATERAL AGENT

               9.1 Collateral Agency Provisions.

               (a) Appointment. Guggenheim Investment Management, LLC is hereby
appointed to act on behalf of all the Lenders as the Collateral Agent under this
Agreement and the other Loan Documents. The provisions of this Section 9.1 are
solely for the benefit of the Collateral Agent and such Lenders, and no Credit
Party nor any other Person shall have any rights as a third party beneficiary of
any of the provisions hereof. In performing its functions and duties under this
Agreement, the Collateral Agent shall act solely as an agent of the respective
Lenders and does not assume and shall not be deemed to have assumed any
obligation toward or relationship of agency or trust with or for any Credit
Party or any other Person. The Collateral Agent shall have no duties or
responsibilities except for those expressly set forth in this Agreement. The
duties of the Collateral Agent shall be mechanical and administrative in nature
and the Collateral Agent shall not have, or be deemed to have, by reason of this
Agreement or otherwise a fiduciary relationship in respect of any Lender.

               (b) Actions. If the Collateral Agent shall request instructions
from the Required Lenders or all Lenders affected thereby with respect to any
act or action (including failure to act) in connection with this Agreement, then
the Collateral Agent shall be entitled to refrain from such act or taking such
action unless and until the Collateral Agent shall have received instructions
from the Required Lenders or all Lenders affected thereby, as the case may be,
and the Collateral Agent shall not incur liability to any Person by reason of so
refraining. The Collateral Agent shall be fully justified in failing or refusing
to take any action hereunder (a) if such action would, in the opinion of the
Collateral Agent, be contrary to law or the terms of this Agreement, (b) if such
action would, in the opinion of the Collateral Agent, expose the Collateral
Agent to any liability or (c) if the Collateral Agent shall not first be
indemnified to its satisfaction against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action.
Without limiting the foregoing, no Lender shall have any right of action
whatsoever against the Collateral Agent as a result of the Collateral Agent
acting or refraining from acting hereunder in accordance with the instructions
of the Required Lenders or all affected Lenders, as applicable.

               (c) Collateral Agent's Reliance, etc. Neither the Collateral
Agent nor any of its Affiliates nor any of their respective directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken
by it or them under or in connection with this Agreement, except for damages
caused by its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Collateral Agent: (i) may
treat the payee of any Note as the holder thereof until the Collateral Agent
receives written notice of the assignment or transfer thereof signed by such
payee and in form satisfactory to the Collateral Agent; (ii) may consult with
legal counsel, independent public accountants and other experts selected by it
and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants or
experts; (iii) makes no warranty or

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<PAGE>

representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of any Credit Party or to inspect the Collateral including
the books and records of any Credit Party; (v) shall not be responsible to any
Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto or thereto; and (vi) shall incur no liability under or
in respect of this Agreement by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telecopy, telegram, cable or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

               (d) Lender Credit Decisions. Each Lender acknowledges that it
has, independently and without reliance upon the Collateral Agent or any other
Lender and based on such financial statements and other documents and
information as it has deemed appropriate, made its own credit and financial
analysis of the Credit Parties and its own decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Collateral Agent or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement. Each Lender acknowledges the potential conflict of interest of each
other Lender as a result of the Lenders holding disproportionate interests in
the Loans, and expressly consents to, and waives any claim based upon, such
conflict of interest.

               (e) Successor Collateral Agent. The Collateral Agent may resign
at any time by giving not less than 30 days' prior written notice thereof to the
Lenders and Interep. Upon any such resignation, the Required Lenders shall have
the right to appoint a successor Collateral Agent. If no successor Collateral
Agent shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the resigning Collateral Agent's
giving notice of resignation, then the resigning Collateral Agent may, on behalf
of the Lenders, appoint a successor Collateral Agent, which shall be a Lender,
if a Lender is willing to accept such appointment, or otherwise shall be a
commercial bank or financial institution or a subsidiary of a commercial bank or
financial institution if such commercial bank or financial institution is
organized under the laws of the United States of America or of any State
thereof, has a combined capital and surplus of at least $300,000,000. If no
successor Collateral Agent has been appointed pursuant to the foregoing by the
30th day after the date such notice of resignation was given by the resigning
Collateral Agent, such resignation shall become effective and the Required
Lenders shall thereafter perform all the duties of the Collateral Agent
hereunder until such time, if any, as the Required Lenders appoint a successor
Collateral Agent as provided above. So long as no Event of Default has occurred
and is continuing, any successor Collateral Agent appointed by the Collateral
Agent or the Required Lenders shall not be a direct competitor of Interep or an
Affiliate of a direct competitor of Interep, if such Affiliate is not a bank or
other financial institution, and shall be subject to the prior approval of
Interep, such approval not to be unreasonably

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<PAGE>

withheld or delayed. Upon the acceptance of any appointment as the Collateral
Agent hereunder by a successor Collateral Agent, such successor Collateral Agent
shall succeed to and become vested with all the rights, powers, privileges and
duties of the resigning Collateral Agent. Upon the earlier of the acceptance of
any appointment as the Collateral Agent hereunder by a successor Collateral
Agent or the effective date of the resigning Collateral Agent's resignation, the
resigning Collateral Agent shall be discharged from its duties and obligations
under this Agreement, except that any indemnity rights or other rights in favor
of such resigning Collateral Agent shall continue. After any resigning
Collateral Agent's resignation hereunder, the provisions of this Section 9.1
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Collateral Agent under this Agreement.

               (f)  Indemnification by the Lenders. The Lenders agree to
indemnify the Collateral Agent (to the extent the Collateral Agent is not
reimbursed by the Credit Parties and without limiting the obligations of Interep
hereunder), ratably on a pro rata basis based on the principal amount
outstanding on the Loans from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred
by, or asserted against the Collateral Agent in any way relating to or arising
out of this Agreement or any other Loan Document or any action taken or omitted
by the Collateral Agent in connection therewith; provided, however, that no
Lender shall be liable to the extent it is finally judicially determined that
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements arose primarily from the Collateral
Agent's gross negligence or willful misconduct.

10.      MISCELLANEOUS

               10.1 Complete Agreement; Modification of Agreement; Sale of
Interest. (a) The Transaction Documents constitute the complete agreement
between the parties with respect to the subject matter hereof and thereof,
supercede any previous agreement or understanding between them relating hereto
or thereto and may not be modified, altered or amended except as provided
therein, or in the case of the Loan Documents by an agreement in writing signed
by the Credit Parties and the Lenders in accordance with Section 10.1(d) hereof.
The Credit Parties may not sell, assign or transfer any of the Loan Documents or
any portion thereof, including, without limitation, their rights, title,
interests, remedies, powers and duties hereunder or thereunder. Subject to
Section 10.1(c) hereof, the Credit Parties hereby consent to any Lender's sale
of participations, assignment, transfer or other disposition, at any time or
times of any of the Loan Documents or of any portion thereof or interest
therein, including, without limitation, such Lender's rights, title, interests,
remedies, powers or duties thereunder, whether evidenced by a writing or not.

               (b)  In the event any Lender assigns or otherwise transfers all
or any part of the Notes, Interep shall, upon the request of such Lender issue
new Notes to effectuate such assignment or transfer.

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<PAGE>

       (c)    Following the receipt of Interep's written consent, which consent
may not be unreasonably withheld, and at any time or times following the
occurrence and during the continuance of an Event of Default without the need
for such written consent, any Lender may sell, assign, transfer or negotiate to
one or more other lenders, commercial banks, insurance companies, other
financial institutions or any other Person all or a portion of its rights and
obligations under the Notes held by such Lender and this Agreement; provided,
however, that so long as no Event of Default has occurred and is continuing, no
such assignment or transfer shall be made by any Lender to any direct
competitor, or to an Affiliate of a direct competitor, of Interep; provided,
further however, that an Affiliate for such purposes shall not include in any
event any entity which is a bank or other financial institution, or is otherwise
engaged primarily in lending. The acceptance of such assignment by any assignee
shall constitute the agreement of such assignee to be bound by the terms of this
Agreement applicable to such Lender. From and after the effective date of such
an assignment, (x) the assignees thereunder shall, in addition to the rights and
obligations hereunder held by it immediately prior to such effective date, have
the rights and obligations hereunder that have been assigned to it pursuant to
such assignment and (y) the assignor thereunder shall, to the extent that rights
and obligations hereunder have been assigned by it pursuant to such assignment,
relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an assignment and acceptance covering all or the remaining
portion of an assignor's rights and obligations under this Agreement, such
assignor shall cease to be a party hereto).

       (d)    No amendment or waiver of any provision of this Agreement, the
Notes or any other Loan Document, nor consent to any departure by any Credit
Party therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Required Lenders, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no amendment, waiver or consent shall,
unless in writing and signed by each Lender affected thereby do any of the
following: (i) subject such Lender to any additional obligations, (ii) reduce
the principal of, or interest on, any Loan or other amounts payable hereunder or
the Notes or release or discharge any Credit Party from its obligations to make
such payments, (iii) postpone any date fixed for any payment of principal of, or
interest on, any Loans or other amounts payable hereunder or the Notes, (iv)
change the aggregate unpaid principal amount of any Loan or any Note, or the
number of Lenders, which shall be required for such Lenders or any of them to
take any action hereunder, or (v) amend this Section 10.1(d).

       10.2   Fees and Expenses. The Credit Parties shall pay all reasonable
out-of-pocket expenses of the Lenders in connection with the preparation of the
Transaction Documents and the transactions contemplated thereby, including all
reasonable legal expenses. If, at any time or times, regardless of the existence
of an Event of Default (except with respect to paragraph (iii) below, which
shall be subject to an Event of Default having occurred and be continuing), any
Lender shall employ

                                       41

<PAGE>

counsel or other advisors for advice or other representation or shall incur
reasonable legal or other costs and expenses in connection with:

              (i)    any amendment, modification or waiver, or consent with
respect to, any of the Loan Documents or advice in connection with the
administration of the loans made pursuant hereto or its rights hereunder or
thereunder;

              (ii)   any litigation, contest, dispute, suit, proceeding or
action (whether instituted by any Lender, any Credit Party or any other Person)
in any way relating to any of the Loan Documents or any other agreements to be
executed or delivered in connection herewith; or

              (iii)  any attempt to enforce any rights of such Lender against
any Credit Party or any other Person, that may be obligated to such Lender by
virtue of any of the Loan Documents;

then, and in any such event, the reasonable attorneys' and other parties' fees
arising from such services, including those of any appellate proceedings, and
all expenses, costs, charges and other fees incurred by such counsel and others
in any way or respect arising in connection with or relating to any of the
events or actions described in this Section shall be payable, on demand, by the
Credit Parties, jointly and severally, to such Lender and shall be additional
Obligations under this Agreement and the other Loan Documents. Without limiting
the generality of the foregoing, such expenses, costs, charges and fees may
include: paralegal fees, costs and expenses; accountants' and investment
bankers' fees, costs and expenses; court costs and expenses; photocopying and
duplicating expenses; court reporter fees, costs and expenses; long distance
telephone charges; air express charges; telegram charges; secretarial overtime
charges; and expenses for travel, lodging and food paid or incurred in
connection with the performance of such legal services.

       10.3   No Waiver by Lender. Any Lender's failure, at any time or times,
to require strict performance by any Credit Party of any provision of this
Agreement and any of the other Loan Documents shall not waive, affect or
diminish any right of any Lender thereafter to demand strict compliance and
performance therewith. Any suspension or waiver by any Lender of an Event of
Default by any Credit Party under the Loan Documents shall not suspend, waive or
affect any other Event of Default by any Credit Party under this Agreement and
any of the other Loan Documents whether the same is prior or subsequent thereto
and whether of the same or of a different type. None of the undertakings,
agreements, warranties, covenants and representations of any Credit Party
contained in this Agreement or any of the other Loan Documents and no Event of
Default by any Credit Party under this Agreement and no defaults by any Credit
Party under any of the other Loan Documents shall be deemed to have been
suspended or waived by any Lender, unless such suspension or waiver is by an
instrument in writing signed by an officer of such Lender and the Required
Lenders and directed to any Credit Party specifying such suspension or waiver.

                                       42

<PAGE>

       10.4   Remedies. The Lenders' rights and remedies under this Agreement
shall be cumulative and nonexclusive of any other rights and remedies which the
Lenders may have under any other agreement, including without limitation, the
Loan Documents, the other Transaction Documents, by operation of law or
otherwise.

       10.5   Waiver of Jury Trial. The parties hereto waive all right to trial
by jury in any action or proceeding to enforce or defend any rights under the
Transaction Documents.

       10.6   Severability. Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

       10.7   Binding Effect; Benefits. This Agreement and the other Transaction
Documents shall be binding upon, and inure to the benefit of, the successors of
the Credit Parties and the Lenders and the assigns, transferees and endorsees of
the Lenders.

       10.8   Conflict of Terms. Except as otherwise provided in this Agreement
or any of the other Loan Documents by specific reference to the applicable
provisions of this Agreement, if any provision contained in this Agreement is in
conflict with, or inconsistent with, any provision in any of the other Loan
Documents, the provision contained in this Agreement shall govern and control.

       10.9   Governing Law. Except as otherwise expressly provided in any of
the Transaction Documents, in all respects, including all matters of
construction, validity and performance, this Agreement and the Obligations
arising hereunder shall be governed by, and construed and enforced in accordance
with, the laws of the State of New York applicable to contracts made and
performed in such state, without regard to the principles thereof regarding
conflict of laws, and any applicable laws of the United States of America. The
Lenders and the Credit Parties agree to submit to personal jurisdiction and to
waive any objection as to venue in the federal or New York State courts located
in the County of New York, State of New York. Service of process on any Lender,
the Collateral Agent or any Credit Party in any action arising out of or
relating to any of the Transaction Documents shall be effective if mailed to
such party at the address listed in Section 10.10 hereof. Nothing herein shall
preclude any Lender, the Collateral Agent or any Credit Party from bringing suit
or taking other legal action in any other jurisdiction.

       10.10  Notices. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by another, or whenever any of the parties desires to give or serve upon
another any such communication with respect to this Agreement, each such notice,
demand, request,

                                       43

<PAGE>

consent, approval, declaration or other communication shall be in writing and
either shall be delivered in person with receipt acknowledged or by registered
or certified mail, return receipt requested, postage prepaid, or by telecopy and
confirmed by telecopy answerback addressed to the respective party hereto at the
address specified for such party on Schedule A and Schedule B; provided, however
that any party may substitute such other address by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration or other communication hereunder shall be deemed
to have been duly given or served on the date on which personally delivered,
with receipt acknowledged, telecopied and confirmed by telecopy answerback, or
three (3) Business Days after the same shall have been deposited with the United
States mail. Failure or delay in delivering copies of any notice, demand,
request, consent, approval, declaration or other communication to the Persons
designated above to receive copies shall in no way adversely affect the
effectiveness of such notice, demand, request, consent, approval, declaration or
other communication.

       10.11  Survival. The representations and warranties of the Credit Parties
in this Agreement shall survive the execution, delivery and acceptance hereof by
the parties hereto and the closing of the transactions described herein or
related hereto.

       10.12  Section and Other Headings. The section and other headings
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.

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

       10.14  Publicity. Neither any Lender, the Collateral Agent nor any Credit
Party shall issue any press release or make any public disclosure regarding the
transactions contemplated hereby unless such press release or public disclosure
is approved by the other party in advance. Notwithstanding the foregoing, each
of the parties hereto may, in documents required to be filed by it with the SEC
or other regulatory bodies, make such statements with respect to the
transactions contemplated hereby as each may be advised by counsel is legally
necessary or advisable, and may make such disclosure as it is advised by its
counsel is required by law, subject to, in the case of any Credit Party, advance
consultation with the Lenders and the Collateral Agent.

       10.15  Confidentiality. Each of the Lenders and the Collateral Agent
(together, the "Recipients") agrees as follows:

       (a)    Pursuant to various provisions of this Agreement, the Recipients
and their respective agents (including, without limitation, the board observer
contemplated in Section 5.1(j)) will have access to information regarding the
current and projected business, financial condition and results of operations of
the Credit Parties, including non-public records, reports, data, business plans,
financial statements and

                                       44

<PAGE>

projections (together, the "Information"), whether or not marked
as confidential and whether in written, electronic or oral form. In order to
induce the Credit Parties to disclose and permit access to the Information to
the Recipients, the Recipients agree as provided in the following subparagraphs
of this Section 10.15.

       (b)    The Recipients agree and acknowledge that the Information
constitutes trade secrets (including useful combinations of secret and
non-secret information) and non-public confidential information owned by the
Credit Parties. The Recipients shall not use the Information for any purpose
other than for the purposes contemplated under this Agreement and shall maintain
the Information in strict confidence. The Recipients shall not disclose any of
the Information to any third party other than to their attorneys or advisors or
to assignees of, or participants in, or prospective assignees of or prospective
participants in, the Loans or the Warrant who have executed confidentiality
agreements substantially similar to this Section 10.15. The Recipients will not
permit disclosure within their respective organizations beyond the extent
necessary to fulfill the purposes contemplated under this Agreement. Other than
for such purposes, the Recipients will not copy, reproduce or appropriate for
their benefit or that of any other party the Information or any portion thereof.

       (c)    The Recipients acknowledge that some of the Information will
constitute, when disclosed and for some period thereafter, material, non-public
information for purposes of the federal securities laws. Accordingly, the
Recipients acknowledge that there are securities laws restrictions on their
trading in the Class A Common Stock of Interep whenever they are in possession
of such Information.

       (d)    The Recipients will cause their respective officers, directors,
employees and agents to abide by the terms and conditions of this Section 10.15
and will safeguard the Information from access by unauthorized persons through
appropriate, reasonable measures.

       (e)    If any Recipient is required by any law, rule, regulation,
subpoena, interrogatories or similar process, to disclose any Information, such
Recipient shall notify Interep promptly so that it may seek an appropriate
protective order or other relief.

       (f)    The following will be excluded from the application of
subparagraphs (a)-(e): Information which (i) can be shown by written records to
have been in a Recipient's lawful possession at the time of its disclosure by
the Credit Parties to it and is not covered by another confidentiality agreement
in favor of any Credit Party, (ii) is now, or later becomes, part of general
industry or public knowledge, but not as a result of the actions or omissions of
any Recipient in violation of this Agreement, (iii) is received by a Recipient
lawfully and in good faith from a third party without breach of its own
confidentiality obligations in favor of any Credit Party or (iv) is required to
be disclosed by applicable law, rule, regulation or judicial or administrative
process, so long as the Recipients comply with the provisions of subparagraph
(e) of this Section 10.15.

                                       45

<PAGE>

       (g)    Because the Credit Parties would not have an adequate remedy at
law to protect their interest in their trade secrets, proprietary or
confidential information and similar commercial assets, the Credit Parties shall
be entitled to injunctive relief or specific performance, in addition to such
other remedies and relief that would, in the event of a breach of the provisions
of this Section 10.15 by any Recipient be available to the Credit Parties. If
any Recipient is found by a court of law to have breached any provision of this
Agreement, the Recipients shall reimburse the Credit Parties for all reasonable
costs incurred by them, including, without limitation, attorneys' fees and
disbursements.

                                       46

<PAGE>

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

                                 Interep National Radio Sales, Inc.

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                 GUARANTORS:
                                 ----------

                                 AMERICAN RADIO SALES, INC.

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                 McGAVERN GUILD, INC.

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                 D&R RADIO, INC

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                 INFINITY RADIO SALES, INC.

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                 ALLIED RADIO PARTNERS, INC.

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                 CABALLERO SPANISH MEDIA, L.L.C.

                                 By:    /s/ William J. McEntee, Jr.
                                    -------------------------------
                                 Name:  William J. McEntee, Jr.
                                 Title: Chief Financial Officer and Senior
                                          Vice President

                                       47

<PAGE>

                                 Lenders:
                                 -------

                                 UPPER COLOMBIA CAPITAL COMPANY, L.L.C.

                                 By:    /s/ Todd Boehly
                                     -------------------------------
                                 Name:  Todd Boehly
                                 Title: Managing Director

                                 COLLATERAL AGENT:
                                 ----------------

                                 Guggenheim Investment Management, LLC,
                                 as Collateral Agent

                                 By:    /s/ Todd Boehly
                                     -------------------------------
                                 Name:  Todd Boehly
                                 Title: Managing Director

                                       48

<PAGE>

                              DISCLOSURE SCHEDULES

           The following items are the Schedules referred to in the Credit
Agreement, dated as of November 7, 2002 (the "Agreement"), among Interep
National Radio Sales, Inc, a New York corporation ("Interep") and the
Guarantors, Lenders and Collateral Agent (each as defined in the Agreement).
Capitalized terms used in these Schedules and not otherwise defined have the
meanings given to them in the Agreement.

                                  SCHEDULE 4.1

           Options: As of September 30, 2002, options to acquire an aggregate of
4,895,156 shares of Interep's Class B common stock were outstanding. Such
options were granted pursuant to Interep's 1999 Stock Incentive Plan or to prior
actions of the Board of Directors.

           Warrants: As of the date hereof, warrants to acquire 692,500 shares
of Class A common stock are outstanding, having been issued in connection with
the issuance of an aggregate of 110,000 shares of Interep's Series A convertible
preferred stock in 2002. On the Closing Date, Interep will issue warrants to
purchase 225,000 shares of its Class A common stock to the Collateral Agent.

           Series A convertible preferred stock: As of the Closing Date, there
are 110,000 shares of Series A convertible preferred stock outstanding as of the
Closing Date, which are, as of the Closing Date, convertible into 2,750,000
shares of Class A common stock.

                                  SCHEDULE 4.5

<TABLE>
<CAPTION>
                                Jurisdiction                                   Holders of          Number of         Percentage of
                                     of          Authorized      Outstanding   Outstanding     Shares/Interests    Shares/Interests
    Subsidiary Name             Organization      Capital          Capital      Capital            so Held             so Held
  -------------------         ----------------  -------------   ------------- --------------  -----------------   -----------------
<S>                           <C>               <C>             <C>           <C>             <C>                  <C>
Allied Radio Partners, Inc.       New York       2,000 shares   1,790 shares  Interep         1,790 shares             100%
                                                 of common
                                                 stock, par
                                                 value $1.00
                                                 per share

American Radio Sales, Inc.        New York       1,000 shares   100 shares    Interep         100 shares               100%
                                                 of common
                                                 stock, par
                                                 value $0.01
                                                 per share

Caballero Spanish Media, L.L.C.   New York       LLC            N/A           Interep         N/A                        95%
                                                 membership
                                                 interests
                                                                              McGavren        N/A                         5%
                                                                              Guild, Inc.

Cybereps, Inc.                    Delaware       40,000,000     24,553,155    Interep         12,950,001 shares*       52.7%*
                                                 shares of      shares*       Interactive,
                                                 common                       Inc.
</TABLE>

                                       1

<PAGE>

<TABLE>
<CAPTION>
                              Jurisdiction                                     Holders of         Number of         Percentage of
                                   of          Authorized      Outstanding    Outstanding     Shares/Interests    Shares/Interests
        Subsidiary Name       Organization      Capital         Capital         Capital           so Held             so Held
      -------------------   ----------------  -------------   -------------   ------------    ------------------  -----------------
<S>                         <C>               <C>             <C>             <C>             <C>                 <C>
                                              stock, par                      Other           11,603,154 shares*        47.3%*
                                              value $0.001                    shareholders
                                              per share

                                              1,000,000         1 share       Interep         1 share                   100%
                                              shares of                       Interactive,
                                              Series A                        Inc.
                                              preferred
                                              stock, par
                                              value $0.001
                                              per share

D&R Radio, Inc.                 New York      200 shares        196 shares    Interep         196 shares                100%
                                              of common
                                              stock, no
                                              par value

Infinity Radio Sales, Inc.      New York      200 shares        10 shares     Interep         10 shares                 100%
                                              of common
                                              stock, no
                                              par value

Interep Interactive, Inc.       Delaware      20,000,000        12,000,000    Interep New     12,000,000 shares         100%
                                              shares of         shares        Media, Inc.
                                              common
                                              stock, par
                                              value $0.01
                                              per share

Interep New Media, Inc          New York      1,000 shares      1,000 shares  Interep         1,000 shares              100%
                                              of common
                                              stock, par
                                              value $0.01
                                              per share

McGavren Guild, Inc.            New York      250 shares        250 shares    Interep         250 shares                100%
                                              of common
                                              stock, no
                                              par value

Morrison and Abraham, Inc.      New York      1,000 shares      100 shares    Interep         100 shares                100%
                                              of common
                                              stock, $0.01
                                              per share

Public Radio Network, Inc.      New York      1,000 shares      100 shares    Interep         100 shares                100%
                                              of common
                                              stock, par
                                              value $0.01
                                              per share

Streaming Audio, Inc.           Delaware      100 shares        100 shares    Interep         100 shares                100%
                                              of common                       Interactive,
                                              stock, par                      Inc.
</TABLE>

                                       2

<PAGE>

<TABLE>
<CAPTION>
                                                                       Holders of       Number of       Percentage of
                         Jurisdiction     Authorized   Outstanding     Outstanding   Shares/Interests  Shares/Interests
    Subsidiary Name    of Organization     Capital      Capital         Capital         so Held            so Held
--------------------- ------------------ ------------ -------------- -------------- ------------------ ------------------
<S>                   <C>                <C>           <C>           <C>             <C>               <C>
                                                      value $0.01
                                                       per share
</TABLE>

               Warrants to acquire shares of common stock of Interep
Interactive, Inc.

               Adam Guild holds a warrant to acquire 3,000,000 shares of common
stock of Interep Interactive, Inc. ("Interep Interactive").

               Options to acquire shares of common stock of Cybereps, Inc.

               Based solely upon a review of documents signed in connection with
the acquisition of Cybereps, Inc. ("Cybereps") there are currently outstanding
employee stock options to acquire 839,004 shares of common stock of Cybereps.

               Options to acquire shares of common stock of Streaming Audio,
Inc.

               Pursuant to a Call Option Agreement, dated December 29, 2000,
between Interep Interactive and Cybereps, Cybereps holds an option exercisable
until December 31, 2003 to purchase all, but not less than all, of the
outstanding capital stock of Streaming Audio, Inc. ("Streaming Audio").

               Restrictions on Transfer.

               The shares held by Interep Interactive in Cybereps are subject to
a Stockholders Agreement, dated December 29, 2000 (the "Cybereps Stockholders
Agreement") and cannot be transferred, pledged or otherwise encumbered.

               Rights to acquire Cybereps stock.

               Interep Interactive holds the right, pursuant to the Cybereps
Stockholders Agreement, to purchase up to its proportionate percentage share (as
defined therein) of all new securities (as defined therein) that Cybereps may
issue from time to time.

                                  SCHEDULE 4.7

               When Interep or a Subsidiary agrees to buyout a representation
contract between a radio station or group of radio stations and another rep
firm, Interep or such Subsidiary customarily agrees to indemnify and hold the
radio station or group harmless from any buyout liabilities incurred pursuant to
the terminated contract. These indemnification liabilities are currently
reflected in Interep's Balance Sheets under "Current Liabilities--Representation
contract buyouts payable" and "Representation contract buyouts payables".

                                        3

<PAGE>

               The Subsidiaries are guarantors of Interep's obligations under
Interep's 10% Senior Subordinated Notes due 2008.

               Pursuant to the Asset Purchase Agreement, dated as of September
1, 1999, among Interep, it subsidiary, Morrison and Abraham, Inc. ("M&A") and
certain other parties, M&A is contingently liable for the payment of up to $1.5
million of additional purchase price should M&A achieve certain cash flow
targets. The target for 2001 was met and M&A will pay $500,000 on November 15,
2002. Assuming the targets are achieved, $500,000 would be payable on September
15, 2003 and $500,000 would be payable on September 15, 2004.

               The terms of Interep's Certificate of Incorporation governing its
Series A convertible preferred stock provide for the payment of cumulative
annual dividends at the rate of 4% per annum which, at Interep's option may be
paid in cash or in kind in the form of additional shares of the Series A
convertible preferred stock.

               During 2002, Interep's Stock Growth Plan has purchased from
Interep a total of 519,596 shares of Interep's Class B common stock.

                                  SCHEDULE 4.8

               4.8(b). See the attached spreadsheet for a list of real estate
leases.

                                  SCHEDULE 4.9

                                        4

<PAGE>

               4.9(a). In addition to the list of master radio group contracts
and contracts with various radio stations that has been separately provided to
the Collateral Agent and the Lenders, the following is a list of Material
Contracts:

     (1)  10% Series A Senior Subordinated Notes due 2008 in the aggregate
          outstanding principal amount of $99,000,000

     (2)  Indenture, dated July 2, 1998, among Interep, the guarantors as
          defined therein and Summit Bank, as trustee in respect of
          the 10% Series A Senior Subordinated Notes due 2008.

     (3)  Supplemental Indenture, dated as of March 22, 1999, among American
          Radio Sales, Inc., Interep, the Guarantors and Summit Bank as Trustee

     (4)  Guaranties by the Subsidiaries of Interep's obligations under the 10%
          Series A Senior Subordinated Notes due 2008.

     (5)  Interep's office lease for its premises at 100 Park Avenue, New York,
          New York. (See Schedule 4.8).

     (6)  Revolving Credit Agreement, dated December 29, 2000, between Streaming
          Audio, Inc. and Interep Interactive in which Interep Interactive has
          agreed to provide Streaming Audio, Inc. with revolving credit in an
          amount not to exceed $1,000,000 through December 31, 2002 and in an
          amount not to exceed $1,500,000 through December 31, 2003.

     (7)  Registration Rights Agreement among the Interep Employee Stock
          Ownership Plan, the Interep Stock Growth Plan and Interep.

     (8)  Lease, dated January 1, 1990, between Ralph C. Guild, doing business
          as The Tuxedo Park Executive Conference Center and Interep, as amended
          by Amendment of Lease, dated December 3, 1998, between Ralph Guild
          1990 Trust No. 1 (successor in interest to The Tuxedo Park Executive
          Conference Center) and Interep.

     (9)  Amended and Restated Services Agreement, dated as of January 2, 2001,
          between Interep and Media Financial Services, Inc.

     (10) Fifth Amended and Restated Employment Agreement, dated as of March 1,
          1999, between Interep and Ralph C. Guild.

     (11) Amended and Restated Employment Agreement, dated as of April 1, 2000,
          between Interep and Marc G. Guild.

                                        5

<PAGE>

     (12)  Supplemental Income Agreement, dated December 31, 1986, between
           Interep and Ralph C. Guild.

     (13)  Form of Indemnification Agreement for directors and officers.

     (14)  1999 Stock Incentive Plan.

     (15)  Form of Stock Option Agreement.

     (16)  Lease Agreement, dated as of June 30, 1999 between Bronxville Family
           Partnership, L.P. and Interep.

     (17)  Agreement, dated as of November 30, 1999 between Interep and Ralph C.
           Guild.

     (18)  Agreement, dated as of November 30, 1999 between Interep and Ralph C.
           Guild.

     (19)  Agreement, dated as of November 30, 1999 between Interep and Marc G.
           Guild.

     (20)  Form of Stock Purchase Agreement used in connection with sale of
           units consisting of Series A convertible preferred stock and warrants
           to acquire Class A common stock.

     (21)  Form of warrant used in connection with sale of units consisting of
           Series A convertible preferred stock and warrants to acquire Class A
           common stock.

     (22)  Form of Registration Rights Agreement used in connection with sale of
           units consisting of Series A convertible preferred stock and warrants
           to acquire Class A common stock.

     (23)  Leslie Goldberg provides various consulting services to Interep and
           the Subsidiaries, including assistance with regard to new station rep
           contracts. His agreement with Interep is not written.

     (24)  Employment Agreement, dated December 1, 1999, between Interep,
           Interep Interactive and Adam Guild.

     (25)  Employment Agreement, dated September 15, 1999, between M&A, Interep
           and Sheila Kirby.

     (26)  Employment Agreement, dated September 15, 1999, between M&A, Interep
           and Rebecca McElaney.

     (27)  Employment-At-Will Agreement, dated September 1, 1999, between M&A
           and Susan G. Novicki.

                                        6

<PAGE>

     (28) Employment-At-Will Agreement, dated September 1, 1999, between M&A and
          Katherine Graham-Leviss.

     (29) Employment-At-Will Agreement, dated September 1, 1999, between M&A and
          Gina Crosby.

     (30) Employment-At-Will Agreement, dated September 1, 1999, between M&A and
          Carol Hanley.

               4.9(c). Indebtedness and Liens:

     (1)  Interep is obligated under its 10% Series A Senior Subordinated Notes
          due 2008 in the aggregate outstanding principal amount of $99,000,000.
          The Subsidiaries are guarantors of Interep's obligations under the 10%
          Senior Subordinated Notes due 2008.

     (2)  When Interep or a Subsidiary agrees to buyout a representation
          contract between a radio station or group of radio stations and
          another rep firm, Interep or such Subsidiary customarily agrees to
          indemnify and hold the radio station or group harmless from any buyout
          liabilities incurred pursuant to the terminated contract. The buyout
          liability payable to the former rep firm is generally an amount equal
          to the average monthly commissions earned by the former rep firm over
          the 12-month period prior to such termination times the number of
          months remaining in the term of the terminated contract, plus two
          months.

     (3)  Interep agreed to pay $10,403,500 to settle a number of buyout
          disputes with Katz Communications, Inc. ("Katz") in May 2002 involving
          stations operated by, among others, Emmis Communications Corporation
          ("Emmis"), Entercom Communications Corp. ("Entercom") and Cumulus
          Media Inc. ("Cumulus"). These station groups concurrently provided
          Katz with affidavits of confession of judgment in amounts equal to the
          stipulated buyout amounts relating to their stations. Interep agreed
          that, should it default on its obligation to Katz and the confessions
          of judgment be enforced, Interep would then grant each of these
          station groups a security interest in, and the right of set off or
          recoupment with respect to, any and all amounts then payable by them
          to Interep up to the amount of the judgments entered against them.
          With respect to Cumulus, Interep agreed that this security interest
          would be a first priority security interest.

                                  SCHEDULE 4.10

                  None.

                                  SCHEDULE 4.12

               Interep Interactive holds 51% of the outstanding common stock of
Cybereps.

                                  SCHEDULE 4.13

                                        7

<PAGE>
               None.

                                  SCHEDULE 4.14

               Katz Media Group ("Katz") claims it is entitled to be bought out
by Interep of its Representation Agreement, dated September 30, 1999 with
Chancellor Media Corporation of Ohio (the "WYGY Contract"). Interep believes the
successor-in-interest to Chancellor Media Corporation of Ohio terminated the
WYGY Contract prior to the time that the station in question became a client of
Interep. While no specific threat to commence litigation has been made, Katz has
advised Interep that it has turned the matter over to counsel. The amount in
controversy is approximately $400,000.

                                  SCHEDULE 4.15

               None.

                                  SCHEDULE 4.16

               All employment agreements are identified in Schedule 4.9,
items 10-15 and 24-30.

                                  SCHEDULE 4.17

               Copyrights: Interep and its Subsidiaries hold copyrights in and
to the sales and marketing research reports that it prepares as part of its
business. These works are not registered with the United States Copyright
Office.

               Trademarks

               Registered Trademarks:

<TABLE>
<CAPTION>
                          Trademark                            Registration Date       Registration Number
               ----------------------------------          ------------------------- -----------------------
               <S>                                         <C>                       <C>
               Allied Radio Partners                                7/15/97                 2,079,087
               Converging Media 20:20                               8/13/02                 2,608,028
               Country Radio Format Network                         8/23/94                 1,850,836
               E-Radio                                              1/18/00                 2,309,898
               E-Radio Sales                                        6/20/00                 2,360,699
               Interep                                              8/23/88                 1,501,570
               Interep (and design)                                 8/23/88                 1,501,571
               Interep Interactive and design                       4/18/00                 2,343,602
               Internet                                             2/26/85                 1,322,486
               Radio 20:20                                           5/1/01                 2,447,356
               Radio 2000                                           3/14/00                 2,328,970
               Radioexchange                                        6/18/02                 2,580,769
               Selling Today...Innovating For Tomorrow              4/11/00                 2,340,620
</TABLE>

                                        8

<PAGE>

<TABLE>
<CAPTION>
                                                                                          Registration
                          Trademark                            Registration Date             Number
               ----------------------------------          ------------------------- -----------------------
               <S>                                          <C>                      <C>
               Shop Healthy Sweepstakes                               7/23/02                 2,598,139
               Stationscan                                            2/18/97                 2,038,896
               The Power of Country Radio Tour 94                      5/6/97                 2,058,570
               U Can Win                                             12/15/98                 2,211,596
               Urban Radio Format Network                             8/23/94                 1,850,838

               Pending Trademark Applications:

<CAPTION>
                                                      Date Application
                            Trademark                       Filed           Serial Number
               ----------------------------------  ---------------------- ------------------
               <S>                                          <C>                      <C>
               Conversion Media 2020                       5/4/00             76/039614
               Conversion Media Marketing                  5/4/00             76/039616
               Conversion Media Sales                      5/4/00             76/039615
               Eradio                                      9/9/02             78/162011
               E-Radio 20:20                              3/30/01             78/055962
               E-Radio Resource                          05/31/02             78/132341
               Radio 2005                                  5/4/00             76/039613
               Radioxchange                              12/10/01             78/097565
               The Interep Radio Store and design         4/18/00             76/028618
</TABLE>

               Infringement disputes: The internet top level domain name
"e-radio.com" is assigned to Technical Staffing Corporation of Santa Rosa,
California ("TSC"). Interep has previously placed TSC on notice that TSC has no
legitimate right or interest in the domain name "e-radio.com," and of Interep's
intention to enforce its exclusive rights in and to the E-RADIO mark against
infringement or dilution by TSC, or by any assignee or licensee of the domain
name from TSC. On or about September 15, 2002, Interep became aware of the use
of the domain name "e-radio.com" by a third party, Lucrative Technologies, Inc.,
of Shoreview, Minnesota ("LTI"). Interep has issued a demand letter to LTI and
has notified TSC of its intention to exercise its rights against TSC.

                                  SCHEDULE 4.18

               None.

                                  SCHEDULE 4.19

               List of employee benefit plans:

               Group Term Life Insurance
               Group Health Insurance
               Group Dental Insurance
               Group Long-Term Disability Insurance
               Medical Spending Account
               Dependent Care Account

                                        9

<PAGE>

            List of employee pension benefit plans:

            The Interep National Radio Sales, Inc. Stock Growth Plan and Trust
            The Interep National Radio Sales, Inc. Wealth Attainment Plan (401k)

                               SCHEDULE 4.22

            See attached.

                                       10<PAGE>

                                                                    Exhibit 10.2

                               SECURITY AGREEMENT

               SECURITY AGREEMENT, dated as of November 7, 2002 by Interep
National Radio Sales, Inc. ("Interep" or the "Borrower") and each of the other
entities listed on the signature pages hereof (Borrower and each such entity a
"Grantor" and, collectively, the "Grantors"), in favor of Guggenheim Investment
Management, LLC, as collateral agent for the Lenders (as defined in the Credit
Agreement referred to below) (in such capacity, the "Collateral Agent").

                              W i t n e s s e t h:

               Whereas, pursuant to the Credit Agreement, dated as of November
7, 2002 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Grantors, the
Lenders party thereto and the Collateral Agent, as agent for the Lenders, the
Lenders have severally agreed to make extensions of credit to the Borrower upon
the terms and subject to the conditions set forth therein;

               Whereas, the Grantors, other than the Borrower, are party to the
Guaranty pursuant to which they have guaranteed the Obligations; and

               Whereas, a condition precedent to the obligation of the Lenders
to make their respective extensions of credit to the Borrower under the Credit
Agreement is that the Grantors shall have executed and delivered this Agreement
to the Collateral Agent;

               Now, therefore, in consideration of the premises and to induce
the Lenders and the Collateral Agent to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower
thereunder, each Grantor hereby agrees with the Collateral Agent as follows:

          ARTICLE I       Defined Terms

               Section 1.1    Definitions

               (a) Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein have the meanings given to them in the Credit
Agreement.

               (b) Terms used herein that are defined in the UCC have the
meanings given to them in the UCC, including the following terms (which are
capitalized herein):

               "Account Debtor"
               "Accounts"
               "Chattel Paper"
               "Commercial Tort Claim"
               "Commodity Account"
               "Commodity Intermediary"
               "Deposit Account"
               "Documents"
               "Entitlement Holder"
               "Entitlement Order"
               "Equipment"

<PAGE>

               "Financial Asset"
               "General Intangibles"
               "Instruments"
               "Inventory"
               "Investment Property"
               "Letter-of-Credit Right"
               "Proceeds"
               "Securities Account"
               "Securities Intermediary"
               "Security"
               "Security Entitlement"

               (c) The following terms shall have the following meanings:

               "Agreement" means this Security Agreement.

               "Collateral" has the meaning specified in Section 2.1.

               "Copyright Licenses" means any written agreement naming any
Grantor as licensor or licensee granting any right under any Copyright,
including the grant of any right to copy, publicly perform, create derivative
works, manufacture, distribute, exploit or sell materials derived from any
Copyright.

               "Copyrights" means (a) all copyrights arising under the laws of
the United States, any other country or any political subdivision thereof,
whether registered or unregistered and whether published or unpublished, all
registrations and recordings thereof and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Copyright Office or in any foreign counterparts thereof, and (b)
the right to obtain all renewals thereof.

               "Intellectual Property" means, collectively, all rights,
priorities and privileges of any Grantor relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise,
including Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks,
Trademark Licenses and trade secrets, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.

               "Material Intellectual Property" means Intellectual Property
owned by or licensed to a Grantor and material to such Grantor's business.

               "Patents" means (a) all letters patent of the United States, any
other country or any political subdivision thereof and all reissues and
extensions thereof, (b) all applications for letters patent of the United States
or any other country and all divisions, continuations and continuations-in-part
thereof and (c) all rights to obtain any reissues or extensions of the
foregoing.

               "Patent License" means all agreements, whether written or oral,
providing for the grant by or to any Grantor of any right to manufacture, use,
import, sell or offer for sale any invention covered in whole or in part by a
Patent.

                                       2

<PAGE>

               "Trademark License" means any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark.

               "Trademarks" means (a) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and, in each
case, all goodwill associated therewith, whether now existing or hereafter
adopted or acquired, all registrations and recordings thereof and all
applications in connection therewith, in each case whether in the United States
Patent and Trademark Office or in any similar office or agency of the United
States, any State thereof or any other country or any political subdivision
thereof, or otherwise, and all common-law rights related thereto, and (b) the
right to obtain all renewals thereof.

               "UCC" means the Uniform Commercial Code as from time to time in
effect in the State of New York; provided, however, that, in the event that, by
reason of mandatory provisions of law, any of the attachment, perfection or
priority of the Collateral Agent's and the Lenders' security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, the term "UCC" shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such attachment, perfection or priority and
for purposes of definitions related to such provisions.

               Section 1.2    Certain Other Terms

               (a) In this Agreement, in the computation of periods of time from
a specified date to a later specified date, the word "from" means "from and
including" and the words "to" and "until" each mean "to but excluding" and the
word "through" means "to and including."

               (b) The terms "herein," "hereof," "hereto" and "hereunder" and
similar terms refer to this Agreement as a whole and not to any particular
Article, Section, subsection or clause in this Agreement.

               (c) References herein to an Annex, Schedule, Article, Section,
subsection or clause refer to the appropriate Annex or Schedule to, or Article,
Section, subsection or clause in this Agreement.

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

               (e) Where the context requires, provisions relating to any
Collateral, when used in relation to a Grantor, shall refer to such Grantor's
Collateral or any relevant part thereof.

               (f) Any reference in this Agreement to a Loan Document shall
include all appendices, exhibits and schedules thereto, and, unless specifically
stated otherwise all amendments, restatements, supplements or other
modifications thereto, and as the same may be in effect at any time such
reference becomes operative.

               (g) The term "including" means "including without limitation"
except when used in the computation of time periods.

                                       3

<PAGE>

               (h) The terms "Lender," and "Collateral Agent" include their
respective successors.

               (i) References in this Agreement to any statute shall be to such
statute as amended or modified and in effect from time to time.

          ARTICLE II      Grant of Security Interest

               Section 2.1    Collateral

               For the purposes of this Agreement, all of the following property
now owned or at any time hereafter acquired by a Grantor or in which a Grantor
now has or at any time in the future may acquire any right, title or interests
is collectively referred to as the "Collateral":

               (a) all Accounts;

               (b) all Chattel Paper;

               (c) all Deposit Accounts;

               (d) all Documents;

               (e) all Equipment;

               (f) all General Intangibles;

               (g) all Investment Property;

               (h) all Instruments;

               (i) all Inventory;

               (j) all books and records pertaining to the other property
described in this Section 2.1;

               (k) all other goods and personal property of such Grantor,
whether tangible or intangible and wherever located;

               (l) all property of any Grantor held by the Collateral Agent or
any Lender, including all property of every description, in the possession or
custody of or in transit to the Collateral Agent or such Lender for any purpose,
including safekeeping, collection or pledge, for the account of such Grantor or
as to which such Grantor may have any right or power; and

               (m) to the extent not otherwise included, all Proceeds of any of
the foregoing.

               provided, however, that the Collateral shall not include (i) such
Grantor's right, title or interest in or to the National Representative
Contracts of any Credit Party; provided, further, however, that the Collateral
shall include all of such Grantor's right, title and interest in or to any or
all Proceeds or rights to payment arising under or relating to such National

                                       4

<PAGE>

Representative Contracts of any Credit Party and (ii) shares of capital stock of
Cybereps, Inc. owned by Interep Interactive, Inc.

               Section 2.2   Grant of Security Interest in Collateral

               Each Grantor, as collateral security for the full, prompt and
complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of the Obligations, hereby collaterally assigns,
mortgages, pledges and hypothecates to the Collateral Agent for the benefit of
itself and the Lenders, and grants to the Collateral Agent for the benefit of
itself and the Lenders a lien on and security interest in, all of its right,
title and interest in, to and under the Collateral of such Grantor.

          ARTICLE III     Representations and Warranties

               To induce the Lenders and the Collateral Agent to enter into the
Credit Agreement, each Grantor hereby represents and warrants each of the
following to the Collateral Agent and the Lenders:

               Section 3.1   Title; No Other Liens

               Except for the Lien granted to the Collateral Agent pursuant to
this Agreement and the other Liens permitted to exist on the Collateral under
the Credit Agreement, such Grantor has rights in or the power to transfer each
item of Collateral in which a Lien is granted by it hereunder, free and clear of
any Lien.

               Section 3.2   Perfection and Priority

               The security interest granted pursuant to this Agreement shall
constitute a valid and continuing perfected security interest in favor of the
Collateral Agent in the Collateral for which perfection is governed by the UCC
upon the completion of the filings and other actions specified on Schedule 1
(which, in the case of all filings and other documents referred to on such
schedule, have been delivered to the Collateral Agent in completed and duly
executed form). Such security interest shall be prior to all other Liens on the
Collateral except for Permitted Liens or otherwise as permitted under the Credit
Agreement.

               Section 3.3   Name; Jurisdiction of Organization; Chief Executive
Office

               (a) Except as set forth on Schedule 2, within the five-year
period preceding the date hereof such Grantor has not had, or operated in any
jurisdiction, under any trade name, fictitious name or other name other than its
legal name.

               (b) On the date hereof such Grantor's jurisdiction of
organization, organizational identification number, if any, and the location of
such Grantor's chief executive office or sole place of business is specified on
Schedule 2.

               Section 3.4   Inventory and Equipment

               On the date hereof, such Grantor's Inventory and Equipment (other
than mobile goods and Inventory or Equipment in transit) are kept at the
locations listed on Schedule 3.

                                       5

<PAGE>

               Section 3.5   Accounts

               No amount payable to such Grantor under or in connection with any
Account is evidenced by any Instrument or Chattel Paper that has not been
delivered to the Collateral Agent, properly endorsed for transfer.

               Section 3.6   Intellectual Property

               (a) Schedule 4 lists all Material Intellectual Property of such
Grantor on the date hereof, separately identifying that owned by such Grantor
and that licensed to such Grantor.

               Section 3.7   Deposit Accounts

               The only Deposit Accounts or Securities Accounts maintained by
any Grantor on the date hereof are those listed on Schedule 5, which sets forth
such information separately for each Grantor.

          ARTICLE IV      Covenants

               Each Grantor agrees with the Collateral Agent to the following,
as long as any Obligation remains outstanding and, in each case, unless the
Required Lenders otherwise consent in writing:

               Section 4.1   Generally

               Such Grantor shall (a) except for the security interest created
by this Agreement, not create or suffer to exist any Lien upon or with respect
to any Collateral, except Liens permitted under the Credit Agreement, (b) not
use or permit any Collateral to be used unlawfully or in violation of any
provision of this Agreement, any other Loan Document, any requirement of law or
any policy of insurance covering the Collateral, (c) not sell, transfer or
assign (by operation of law or otherwise) any Collateral except as permitted
under the Credit Agreement, (d) not enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Collateral Agent to
sell, assign or transfer any Collateral if such restriction would have a
Material Adverse Effect and (e) promptly notify the Collateral Agent of its
entry into any agreement or assumption of undertaking that restricts the ability
to sell, assign or transfer any Collateral regardless of whether or not it has a
Material Adverse Effect.

               Section 4.2   Maintenance of Perfected Security Interest; Further
                             Documentation

               (a) Such Grantor shall maintain the security interest created by
this Agreement as a perfected security interest having at least the priority
described in Section 3.2 and shall defend such security interest against the
claims and demands of all Persons.

               (b) Such Grantor shall furnish to the Collateral Agent from time
to time statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as the
Collateral Agent may reasonably request, all in reasonable detail.

                                       6

<PAGE>

               (c) At any time and from time to time, upon the written request
of the Collateral Agent, and at the sole expense of such Grantor, such Grantor
shall promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further action as the Collateral Agent
may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including the filing of any financing or continuation statement under the UCC
(or other similar laws) in effect in any jurisdiction with respect to the
security interest created hereby.

               Section 4.3 Changes in Locations, Name, Etc.

               (a) Except upon 15 days' prior written notice to the Collateral
Agent and delivery to the Collateral Agent of (A) all additional executed
financing statements and other documents reasonably requested by the Collateral
Agent to maintain the validity, perfection and priority of the security
interests provided for herein and (B) if applicable, a written supplement to
Schedule 3 showing any additional location at which Inventory or Equipment shall
be kept, such Grantor shall not do any of the following:

               (i)    permit any Inventory or Equipment to be kept at a location
          other than those listed on Schedule 3;

               (ii)   change its jurisdiction of organization or the location of
          its chief executive office or sole place of business from that
          referred to in Section 3.3; or

               (iii)  change its name, identity or corporate structure to such
          an extent that any financing statement filed in connection with this
          Agreement would become misleading.

               (b) Such Grantor shall keep and maintain at its own cost and
expense satisfactory and complete records of the Collateral, including a record
of all payments received and all credits granted with respect to the Collateral
and all other dealings with the Collateral. If requested by the Collateral
Agent, the security interest of the Collateral Agent shall be noted on the
certificate of title of any vehicle.

               Section 4.4   Accounts

               (a) Such Grantor shall not, other than in the ordinary course of
business consistent with its past practice, (i) grant any extension of the time
of payment of any Account, (ii) compromise or settle any Account for less than
the full amount thereof, (iii) release, wholly or partially, any Person liable
for the payment of any Account, other than such release in connection with a
sale of such Accounts pursuant to a sale of a National Representative Contract
permitted under the Credit Agreement, provided that such Grantor receives in
cash the then outstanding amount of such Accounts at the time of such sale, (iv)
allow any credit or discount on any Account or (v) amend, supplement or modify
any Account in any manner that could adversely affect the value thereof.

               (b) The Collateral Agent shall have the right to make test
verifications of the Accounts in any manner and through any medium that it
reasonably considers advisable, and such Grantor shall furnish all such
assistance and information as the Collateral Agent may reasonably require in
connection therewith, provided that so long as no Event of Default has occurred
and is continuing, the Collateral Agent shall not make (i) more than 3 such test
verifications during any Fiscal Year and (ii) such test verifications during a
period commencing on January 1st and ending

                                       7

<PAGE>

on March 15th of each year. At any time after the occurrence and during the
continuance of an Event of Default, upon the Collateral Agent's request, such
Grantor shall cause independent public accountants or others satisfactory to the
Collateral Agent to furnish to the Collateral Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Accounts. Any expenses incurred by the Collateral Agent in connection with its
exercise of rights pursuant to this Section 4.4 shall be equally shared by the
Grantors, on the one hand and the Collateral Agent on the other hand; provided,
however, that the Grantors shall in no event be required to pay more than
$10,000 of such expenses of the Collateral Agent in any Fiscal Year.
Notwithstanding the immediately preceding sentence, following the occurrence and
during the continuance of an Event of Default, all expenses incurred by the
Collateral Agent in connection with its exercise of rights pursuant to this
Section 4.4 shall be borne by the Grantors.

               Section 4.5  Delivery of Instruments and Chattel Paper

               If any amount payable under or in connection with any Collateral
owned by such Grantor, shall be or become evidenced by an Instrument or Chattel
Paper, such Grantor shall immediately deliver such Instrument (other than checks
and money orders payable to the Grantors in the ordinary course of business) or
Chattel Paper to the Collateral Agent, duly indorsed in a manner satisfactory to
the Collateral Agent, or, if consented to by the Collateral Agent, shall mark
all such Instruments and Chattel Paper with the following legend: "This writing
and the obligations evidenced or secured hereby are subject to the security
interest of Guggenheim Investment Management, LLC, as Collateral Agent".

               Section 4.6   Intellectual Property

               Such Grantor (either itself or through licensees) shall (i)
continue to use each Trademark that is Material Intellectual Property in order
to maintain such Trademark in full force and effect with respect to each class
of goods for which such Trademark is currently used, free from any claim of
abandonment for non-use, (ii) maintain as in the past the quality of products
and services offered under such Trademark, (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required by
common law and all federal, state, local and foreign laws, rules and
regulations, (iv) not adopt or use any mark that is confusingly similar or a
colorable imitation of such Trademark unless the Collateral Agent shall obtain a
perfected security interest in such mark pursuant to this Agreement and (v) not
(and not permit any licensee or sublicensee thereof to) do any act or knowingly
omit to do any act whereby such Trademark may become invalidated or impaired in
any way.

               (a) Such Grantor (either itself or through licensees) shall not
do any act, or omit to do any act, whereby any Patent that is Material
Intellectual Property may become forfeited, abandoned or dedicated to the
public.

               (b) Such Grantor (either itself or through licensees) (i) shall
not (and shall not permit any licensee or sublicensee thereof to) do any act or
omit to do any act whereby any portion of the Copyrights that is Material
Intellectual Property may become invalidated or otherwise impaired and (ii)
shall not (either itself or through licensees) do any act whereby any portion of
the Copyrights that is Material Intellectual Property may fall into the public
domain.

               (c) Such Grantor (either itself or through licensees) shall not
do any act, or omit to do any act, whereby any trade secret that is Material
Intellectual Property may become publicly available or otherwise unprotectable.

                                       8

<PAGE>

               (d) Such Grantor (either itself or through licensees) shall not
do any act that knowingly uses any Material Intellectual Property to infringe
the intellectual property rights of any other Person.

               (e) Such Grantor shall notify the Collateral Agent immediately if
it knows, or has reason to know, that any application or registration relating
to any Material Intellectual Property may become forfeited, abandoned or
dedicated to the public, or of any adverse determination or development
(including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, the United States
Copyright Office or any court or tribunal in any country) regarding such
Grantor's ownership of, right to use, interest in, or the validity of, any
Material Intellectual Property or such Grantor's right to register the same or
to own and maintain the same.

               (f) Whenever such Grantor, either by itself or through any agent,
licensee or designee, shall file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, the
United States Copyright Office or any similar office or agency within or outside
the United States, such Grantor shall report such filing to the Collateral Agent
within five Business Days after the last day of the fiscal quarter in which such
filing occurs. Upon request of the Collateral Agent, such Grantor shall execute
and deliver, and have recorded, all agreements, instruments, documents and
papers as the Collateral Agent may request to evidence the Collateral Agent's
security interest in any Copyright, Patent or Trademark and the goodwill and
general intangibles of such Grantor relating thereto or represented thereby.

               (g) Such Grantor shall take all reasonable actions necessary or
requested by the Collateral Agent, including in any proceeding before the United
States Patent and Trademark Office, the United States Copyright Office or any
similar office or agency, to maintain and pursue each application (and to obtain
the relevant registration) and to maintain each registration of any Copyright,
Trademark or Patent that is Material Intellectual Property, including filing of
applications for renewal, affidavits of use, affidavits of incontestability and
opposition and interference and cancellation proceedings.

               (h) In the event that any Material Intellectual Property is
infringed upon or misappropriated or diluted by a third party, such Grantor
shall notify the Collateral Agent promptly after such Grantor learns thereof.
Such Grantor shall take appropriate action in response to such infringement,
misappropriation of dilution, including promptly bringing suit for infringement,
misappropriation or dilution and to recover all damages for such infringement,
misappropriation of dilution, and shall take such other actions may be
appropriate in its reasonable judgment under the circumstances to protect such
Material Intellectual Property.

               Unless otherwise agreed to by the Collateral Agent, such Grantor
shall execute and deliver to the Collateral Agent for filing in (i) the United
States Patent and Trademark Office (i) a short-form patent security agreement
and (ii) the United States Patent and Trademark Office a short-form trademark
security agreement, each in a form and substance satisfactory to the Collateral
Agent.

                                       9

<PAGE>

          ARTICLE V       Remedial Provisions

               Section 5.1   Code and Other Remedies

               During the continuance of an Event of Default, the Collateral
Agent may exercise, in addition to all other rights and remedies granted to it
in this Agreement and in any other instrument or agreement securing, evidencing
or relating to the Obligations, all rights and remedies of a secured party under
the UCC or any other applicable law. Without limiting the generality of the
foregoing, the Collateral Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law referred to below) to or upon any Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate and
realize upon any Collateral, and may forthwith sell, lease, assign, give option
or options to purchase, or otherwise dispose of and deliver any Collateral (or
contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker's board or office of the
Collateral Agent or any Lender or elsewhere upon such terms and conditions as it
may deem advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk. The Collateral
Agent shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and released.
Each Grantor further agrees, at the Collateral Agent's request during the
continuance of an Event of Default, to assemble the Collateral and make it
available to the Collateral Agent at places that the Collateral Agent shall
reasonably select, whether at such Grantor's premises or elsewhere. The
Collateral Agent shall apply the net proceeds of any action taken by it pursuant
to this Section 5.1, after deducting all reasonable costs and expenses of every
kind incurred in connection therewith or incidental to the care or safekeeping
of any Collateral or in any way relating to the Collateral or the rights of the
Collateral Agent and any Lender hereunder, including reasonable attorneys' fees
and disbursements, to the payment in whole or in part of the Obligations, in
such order as the Credit Agreement shall prescribe, and only after such
application and after the payment by the Collateral Agent of any other amount
required by any provision of law, need the Collateral Agent account for the
surplus, if any, to any Grantor. To the extent permitted by applicable law, each
Grantor waives all claims, damages and demands it may acquire against the
Collateral Agent or any Lender arising out of the exercise by them of any rights
hereunder. If any notice of a proposed sale or other disposition of Collateral
shall be required by law, such notice shall be deemed reasonable and proper if
given at least 10 days before such sale or other disposition.

               Section 5.2   Accounts and Payments in Respect of General
                             Intangibles

               (a) If required by the Collateral Agent at any time during the
continuance of an Event of Default, any payment of Accounts or payment in
respect of General Intangibles, when collected by any Grantor, shall be
forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the
Collateral Agent if required, in an account designated by the Collateral Agent,
subject to withdrawal by the Collateral Agent. Until so turned over, such
payment shall be held by such Grantor in trust for the Collateral Agent,
segregated from other funds of such Grantor. Each such deposit of Proceeds of
Accounts and payments in respect of General Intangibles shall be accompanied by
a report identifying in reasonable detail the nature and source of the payments
included in the deposit.

                                       10

<PAGE>

          (b) At the Collateral Agent's request, during the continuance of an
Event of Default, each Grantor shall deliver to the Collateral Agent all
original and other documents evidencing, and relating to, the agreements and
transactions that gave rise to the Accounts or payments in respect of General
Intangibles, including all original orders, invoices and shipping receipts.

          (c) The Collateral Agent may, without notice, at any time during the
continuance of an Event of Default, limit or terminate the authority of a
Grantor to collect its Accounts or amounts due under General Intangibles or any
thereof.

          (d) The Collateral Agent in its own name or in the name of others may
at any time during the continuance of an Event of Default communicate with
Account Debtors to verify with them to the Collateral Agent's satisfaction the
existence, amount and terms of any Account or amounts due under any General
Intangible.

          (e) Upon the request of the Collateral Agent at any time during the
continuance of an Event of Default, each Grantor shall notify Account Debtors
that the Accounts or General Intangibles have been collaterally assigned to the
Collateral Agent and that payments in respect thereof shall be made directly to
the Collateral Agent. In addition, the Collateral Agent may at any time during
the continuance of an Event of Default enforce such Grantor's rights against
such Account Debtors and obligors of General Intangibles.

          (f) Anything herein to the contrary notwithstanding, each Grantor
shall remain liable under each of the Accounts and payments in respect of
General Intangibles to observe and perform all the conditions and obligations to
be observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise thereto. Neither the Collateral Agent nor any Lender
shall have any obligation or liability under any agreement giving rise to an
Account or a payment in respect of a General Intangible by reason of or arising
out of this Agreement or the receipt by the Collateral Agent nor any Lender of
any payment relating thereto, nor shall the Collateral Agent nor any Lender be
obligated in any manner to perform any obligation of any Grantor under or
pursuant to any agreement giving rise to an Account or a payment in respect of a
General Intangible, to make any payment, to make any inquiry as to the nature or
the sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any
action to enforce any performance or to collect the payment of any amounts that
may have been assigned to it or to which it may be entitled at any time or
times.

          Section 5.3 Deficiency

          Each Grantor shall remain liable for any deficiency if the proceeds of
any sale or other disposition of the Collateral are insufficient to pay the
Obligations and the fees and disbursements of any attorney employed by the
Collateral Agent or any Lender to collect such deficiency.

     ARTICLE VI   The Collateral Agent

          Section 6.1 Collateral Agent's Appointment as Attorney-in-Fact

          (a) Each Grantor hereby irrevocably constitutes and appoints the
Collateral Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful

                                       11

<PAGE>

attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, for
the purpose of carrying out the terms of this Agreement, to take any appropriate
action and to execute any document or instrument that may be necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting
the generality of the foregoing, each Grantor hereby gives the Collateral Agent
the power and right, on behalf of such Grantor, without notice to or assent by
such Grantor, to do any of the following:

               (iv)   in the name of such Grantor or its own name, or otherwise,
          take possession of and indorse and collect any check, draft, note,
          acceptance or other instrument for the payment of moneys due under any
          Account or General Intangible or with respect to any other Collateral
          and file any claim or take any other action or proceeding in any court
          of law or equity or otherwise deemed appropriate by the Collateral
          Agent for the purpose of collecting any such moneys due under any
          Account or General Intangible or with respect to any other Collateral
          whenever payable;

               (v)    in the case of any Intellectual Property, execute and
          deliver, and have recorded, any agreement, instrument, document or
          paper as the Collateral Agent may request to evidence the Collateral
          Agent's security interest in such Intellectual Property and the
          goodwill and General Intangibles of such Grantor relating thereto or
          represented thereby;

               (vi)   pay or discharge taxes and Liens levied or placed on or
          threatened against the Collateral, effect any repair or pay or
          discharge any insurance called for by the terms of the Credit
          Agreement (including all or any part of the premiums therefor and the
          costs thereof);

               (vii)  execute, in connection with any sale provided for in
          Section 5.1, any endorsement, assignment or other instrument of
          conveyance or transfer with respect to the Collateral; or

               (viii) (A) direct any party liable for any payment under any
          Collateral to make payment of any moneys due or to become due
          thereunder directly to the Collateral Agent or as the Collateral Agent
          shall direct, (B) ask or demand for, collect, and receive payment of
          and receipt for, any moneys, claims and other amounts due or to become
          due at any time in respect of or arising out of any Collateral, (C)
          sign and indorse any invoice, freight or express bill, bill of lading,
          storage or warehouse receipt, draft against debtors, assignment,
          verification, notice and other document in connection with any
          Collateral, (D) commence and prosecute any suit, action or proceeding
          at law or in equity in any court of competent jurisdiction to collect
          any Collateral and to enforce any other right in respect of any
          Collateral, (E) defend any suit, action or proceeding brought against
          such Grantor with respect to any Collateral, (F) settle, compromise or
          adjust any such suit, action or proceeding and, in connection
          therewith, give such discharges or releases as the Collateral Agent
          may deem appropriate, (G) assign any Copyright, Patent or Trademark
          (along with the goodwill of the business to which any such Trademark
          pertains) throughout the world for such term or terms, on such
          conditions, and in such manner as the Collateral Agent shall in its
          sole discretion determine, including the execution and filing of any
          document necessary to effectuate or record such assignment and (H)
          generally, sell, transfer, pledge and make any agreement with respect
          to or otherwise deal with any Collateral as fully and completely as
          though the Collateral Agent were the

                                       12

<PAGE>

     absolute owner thereof for all purposes, and do, at the Collateral Agent's
     option and such Grantor's expense, at any time, or from time to time, all
     acts and things that the Collateral Agent deems necessary to protect,
     preserve or realize upon the Collateral and the Collateral Agent's and the
     Lenders' security interests therein and to effect the intent of this
     Agreement, all as fully and effectively as such Grantor might do.

Anything in this clause (a) to the contrary notwithstanding, the Collateral
Agent agrees that it shall not exercise any right under the power of attorney
provided for in this clause (a) unless an Event of Default shall be continuing.

          (b) If any Grantor fails to perform or comply with any of its
agreements contained herein, the Collateral Agent, at its option, but without
any obligation so to do, may perform or comply, or otherwise cause performance
or compliance, with such agreement.

          (c) The expenses of the Collateral Agent incurred in connection with
actions undertaken as provided in this Section 6.1, together with interest
thereon at a rate per annum equal to the rate per annum at which interest would
then be payable on past due Loans under the Credit Agreement, from the date of
payment by the Collateral Agent to the date reimbursed by the relevant Grantor,
shall be payable by such Grantor to the Collateral Agent on demand.

          (d) Each Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.

          Section 6.2 Duty of Collateral Agent

          The Collateral Agent's sole duty with respect to the custody,
safekeeping and physical preservation of the Collateral in its possession shall
be to deal with it in the same manner as the Collateral Agent deals with similar
property for its own account. Neither the Collateral Agent, any Lender nor any
of their respective officers, directors, employees or agents shall be liable for
failure to demand, collect or realize upon any Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any
other action whatsoever with regard to any Collateral. The powers conferred on
the Collateral Agent hereunder are solely to protect the Collateral Agent's
interest in the Collateral and shall not impose any duty upon the Collateral
Agent or any Lender to exercise any such powers. The Collateral Agent and the
Lenders shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their
respective officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

          Section 6.3 Execution of Financing Statements

          Each Grantor authorizes the Collateral Agent to file or record
financing statements and other filing or recording documents or instruments with
respect to the Collateral without the signature of such Grantor in such form and
in such offices as the Collateral Agent reasonably determines appropriate to
perfect the security interests of the Collateral Agent under this Agreement. A
photographic or other reproduction of this Agreement shall be sufficient as a

                                       13

<PAGE>

financing statement or other filing or recording document or instrument for
filing or recording in any jurisdiction.

          Section 6.4 Authority of Collateral Agent

          Each Grantor acknowledges that the rights and responsibilities of the
Collateral Agent under this Agreement with respect to any action taken by the
Collateral Agent or the exercise or non-exercise by the Collateral Agent of any
option, voting right, request, judgment or other right or remedy provided for
herein or resulting or arising out of this Agreement shall, as between the
Collateral Agent and the Lenders, be governed by the Credit Agreement and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Collateral Agent and the Grantors, the Collateral
Agent shall be conclusively presumed to be acting as agent for the Collateral
Agent and the Lenders with full and valid authority so to act or refrain from
acting, and no Grantor shall be under any obligation, or entitlement, to make
any inquiry respecting such authority.

     ARTICLE VII   Miscellaneous

          Section 7.1 Amendments in Writing

          None of the terms or provisions of this Agreement may be waived,
amended, supplemented or otherwise modified except in accordance with Section
10.1 of the Credit Agreement.

          Section 7.2 Notices

          All notices, requests and demands to or upon the Collateral Agent or
any Grantor hereunder shall be effected in the manner provided for in Section
10.10 of the Credit Agreement; provided, however, that any such notice, request
or demand to or upon any Grantor shall be addressed in case of the Borrower at
the Borrower's notice address set forth in such Section 10.10.

          Section 7.3 No Waiver by Course of Conduct; Cumulative Remedies

          Neither the Collateral Agent nor any Lender shall by any act (except
by a written instrument pursuant to Section 7.1) delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any
delay in exercising, on the part of the Collateral Agent or any Lender, any
right, power or privilege hereunder shall operate as a waiver thereof. No single
or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. A waiver by the Collateral Agent or any Lender of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy that the Collateral Agent or such Lender would otherwise have on
any future occasion. The rights and remedies herein provided are cumulative, may
be exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

          Section 7.4 Successors and Assigns

          This Agreement shall be binding upon the successors and assigns of
each Grantor and shall inure to the benefit of the Collateral Agent and each
Lender and their successors and

                                       14

<PAGE>

assigns; provided, however, that no Grantor may assign, transfer or delegate any
of its rights or obligations under this Agreement without the prior written
consent of the Collateral Agent.

          Section 7.5  Counterparts

          This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts (including by telecopy), each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Signature pages may
be detached from multiple counterparts and attached to a single counterpart so
that all signature pages are attached to the same document. Delivery of an
executed counterpart by telecopy shall be effective as delivery of a manually
executed counterpart.

          Section 7.6  Severability

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

          Section 7.7  Section Headings

          The Article and Section titles contained in this Agreement are, and
shall be, without substantive meaning or content of any kind whatsoever and are
not part of the agreement of the parties hereto.

          Section 7.8  Entire Agreement

          This Agreement together with the other Loan Documents
represents the entire agreement of the parties and supersedes all prior
agreements and understandings relating to the subject matter hereof.

          Section 7.9  Governing Law

          This agreement and the rights and obligations of the parties hereto
shall be governed by, and construed and interpreted in accordance with, the law
of the State of New York.

          Section 7.10 Additional Grantors

          If, pursuant to Section 5.2(h) of the Credit Agreement, the Borrower
shall be required to cause any Subsidiary that is not a Grantor to become a
Grantor hereunder, such Subsidiary shall execute and deliver to the Collateral
Agent a Joinder Agreement in the form of Annex 1 and shall thereafter for all
purposes be a party hereto and have the same rights, benefits and obligations as
a Grantor party hereto on the Closing Date.

          Section 7.11 Release of Collateral

          Upon irrevocable payment in full, in cash, of the Obligations, the
Collateral shall be released from the Lien created hereby and this Agreement and
all obligations (other than those

                                       15

<PAGE>

expressly stated to survive such termination) of the Collateral Agent and each
Grantor hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall
revert to the Grantors. At the request and sole expense of any Grantor following
any such termination, the Collateral Agent shall deliver to such Grantor any
Collateral of such Grantor held by the Collateral Agent hereunder and execute
and deliver to such Grantor such documents as such Grantor shall reasonably
request to evidence such termination.

          Section 7.12 Reinstatement

          Each Grantor further agrees that, if any payment made by any Grantor
or other Person and applied to the Obligations is at any time annulled, avoided,
set aside, rescinded, invalidated, declared to be fraudulent or preferential or
otherwise required to be refunded or repaid, or the proceeds of Collateral are
required to be returned by any Lender to such Person, its estate, trustee,
receiver or any other party, including any Grantor, under any bankruptcy law,
state or federal law, common law or equitable cause, then, to the extent of such
payment or repayment, any Lien or other Collateral securing such liability shall
be and remain in full force and effect, as fully as if such payment had never
been made or, if prior thereto the Lien granted hereby or other Collateral
securing such liability hereunder shall have been released or terminated by
virtue of such cancellation or surrender), such Lien or other Collateral shall
be reinstated in full force and effect, and such prior cancellation or surrender
shall not diminish, release, discharge, impair or otherwise affect any Lien or
other Collateral securing the obligations of any Grantor in respect of the
amount of such payment.

                            [Signature Pages Follow]

                                       16

<PAGE>

                  In Witness Whereof, each of the undersigned has caused this
Security Agreement to be duly executed and delivered as of the date first above
written.

                                            INTEREP NATIONAL RADIO SALES, INC.,
                                              as Grantor

                                              GRANTORS:
                                              --------

                                            AMERICAN RADIO SALES, INC.

                                            By: /s/ William J. McEntee, Jr.
                                               --------------------------------
                                               Name:  William J. McEntee, Jr.
                                               Title: Chief Financial Officer
                                                      and Senior Vice President

                                            McGAVERN GUILD, INC.

                                            By: /s/ William J. McEntee, Jr.
                                               --------------------------------
                                               Name:  William J. McEntee, Jr.
                                               Title: Chief Financial Officer
                                                      and Senior Vice President

                                            D&R RADIO, INC

                                            By: /s/ William J. McEntee, Jr.
                                               --------------------------------
                                               Name:  William J. McEntee, Jr.
                                               Title: Chief Financial Officer
                                                      and Senior Vice President

                                            INFINITY RADIO SALES, INC.

                                            By: /s/ William J. McEntee, Jr.
                                               --------------------------------
                                               Name:  William J. McEntee, Jr.
                                               Title: Chief Financial Officer
                                                      and Senior Vice President

                                            ALLIED RADIO PARTNERS, INC.

                                            By: /s/ William J. McEntee, Jr.
                                               --------------------------------
                                               Name:  William J. McEntee, Jr.
                                               Title: Chief Financial Officer
                                                      and Senior Vice President

                                            CABALLERO SPANISH MEDIA, L.L.C.

                                            By: /s/ William J. McEntee, Jr.
                                               --------------------------------
                                               Name:  William J. McEntee, Jr.
                                               Title: Chief Financial Officer
                                                      and Senior Vice President

                     [Signature Page to Security Agreement]

<PAGE>

Accepted and Agreed
as of the date first above written:

GUGGENHEIM INVESTMENT MANAGEMENT, LLC,
as Collateral Agent

By:    /s/ Todd Boehly
   -------------------------------
Name:  Todd Boehly
Title: Managing Director

                                       1

<PAGE>

                                                                         Annex 1

          This Joinder Agreement, dated as of _________ __, 20__, is delivered
pursuant to Section 7.10 of the Security Agreement, dated as of November ___,
2002, by Interep National Radio Sales, Inc. (the "Borrower") and the
Subsidiaries of the Borrower listed on the signature pages thereof in favor of
the Guggenheim Investment Management, LLC, as agent for the Lenders referred to
therein (the "Security Agreement"). Capitalized terms used herein but not
defined herein are used with the meanings given them in the Pledge and Security
Agreement.

          By executing and delivering this Joinder Agreement, the undersigned,
as provided in Section 7.10 of the Security Agreement, hereby becomes a party to
the Security Agreement as a Grantor thereunder with the same force and effect as
if originally named as a Grantor therein and, without limiting the generality of
the foregoing, hereby grants to the Collateral Agent, as collateral security for
the full, prompt and complete payment and performance when due (whether at
stated maturity, by acceleration or otherwise) of the Obligations of the
undersigned, hereby collaterally assigns, conveys, mortgages, pledges,
hypothecates and transfers to the Collateral Agent and grants to the Collateral
Agent a Lien on and security interest in, all of its right, title and interest
in, to and under the Collateral and expressly assumes all obligations and
liabilities of a Grantor thereunder.

          The information set forth in Annex 1 is hereby added to the
information set forth in Schedules 1 through 6 to the Security Agreement.

          The undersigned hereby represents and warrants that each of the
representations and warranties contained in Article III of the Security
Agreement applicable to it is true and correct on and as the date hereof as if
made on and as of such date.

          IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement
to be duly executed and delivered as of the date first above written.

                                            [Additional Grantor]

                                            By: ________________________________
                                                Name:
                                                Title:

                                      A1-1

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                     Page
<S>                                                                                                  <C>
SECURITY AGREEMENT .................................................................................... 1

Article I     Defined Terms ........................................................................... 1

         Section 1.1       Definitions ................................................................ 1

         Section 1.2       Certain Other Terms ........................................................ 3

Article II    Grant of Security Interest .............................................................. 4

         Section 2.1       Collateral ................................................................. 4

         Section 2.2       Grant of Security Interest in Collateral ................................... 4

Article III   Representations and Warranties .......................................................... 5

         Section 3.1       Title; No Other Liens ...................................................... 5

         Section 3.2       Perfection and Priority .................................................... 5

         Section 3.3       Name; Jurisdiction of Organization; Chief Executive Office ................. 5

         Section 3.4       Inventory and Equipment .................................................... 5

         Section 3.5       Accounts ................................................................... 5

         Section 3.6       Intellectual Property ...................................................... 5

         Section 3.7       Deposit Accounts; Control Accounts ......................................... 6

Article IV    Covenants ............................................................................... 6

         Section 4.1       Generally .................................................................. 6

         Section 4.2       Maintenance of Perfected Security Interest; Further Documentation .......... 6

         Section 4.3       Changes in Locations, Name, Etc. ........................................... 7

         Section 4.4       Accounts ................................................................... 7

         Section 4.5       Delivery of Instruments and Chattel Paper .................................. 7

         Section 4.6       Intellectual Property ...................................................... 8

Article V     Remedial Provisions ..................................................................... 9

         Section 5.1       Code and Other Remedies .................................................... 9

         Section 5.2       Accounts and Payments in Respect of General Intangibles ................... 10

         Section 5.3       Deficiency ................................................................ 11

Article VI    The Collateral Agent ................................................................... 11

         Section 6.1       Collateral Agent's Appointment as Attorney-in-Fact ........................ 11

         Section 6.2       Duty of Collateral Agent .................................................. 13

         Section 6.3       Execution of Financing Statements ......................................... 13

         Section 6.4       Authority of Collateral Agent ............................................. 13

Article VII   Miscellaneous .......................................................................... 13

         Section 7.1       Amendments in Writing ..................................................... 13
</TABLE>

                                       i

<PAGE>

<TABLE>
         <S>                                                                                            <C>
         Section 7.2        Notices ................................................................... 14

         Section 7.3        No Waiver by Course of Conduct; Cumulative Remedies ....................... 14

         Section 7.4        Successors and Assigns .................................................... 14

         Section 7.5        Counterparts .............................................................. 14

         Section 7.6        Severability .............................................................. 14

         Section 7.7        Section Headings .......................................................... 15

         Section 7.8        Entire Agreement .......................................................... 15

         Section 7.9        Governing Law ............................................................. 15

         Section 7.10       Additional Grantors ....................................................... 15

         Section 7.11       Release of Collateral ..................................................... 15

         Section 7.12       Reinstatement ............................................................. 15
</TABLE>

                                       ii

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

                              ANNEXES AND SCHEDULES

                Annex 1       Form of Joinder Agreement

                Schedule 1    Filings
                Schedule 2    State of Incorporation; Principal Executive Office
                Schedule 3    Location of Inventory and Equipment
                Schedule 4    Intellectual Property
                Schedule 5    Bank Accounts

                                      iii

<PAGE>

                              DISCLOSURE SCHEDULES

               The following items are the Schedules referred to in the Security
Agreement, dated as of November 7, 2002 (the "Agreement"), among Interep
National Radio Sales, Inc, a New York corporation ("Interep") and the Grantors
and Collateral Agent (each as defined in the Agreement). Capitalized terms used
in these Schedules and not otherwise defined have the meanings given to them in
the Agreement.

                                   SCHEDULE 1
                                     FILINGS

               Please see the following pages for copies of UCC-1 financing
statements to be filed as follows:

<TABLE>
<CAPTION>
                                                                               Office Within Jurisdiction
                                                 Jurisdiction In Which           Where Filing Is To Be
                 Name of Grantor                  UCC-1 Is To Be Filed                    Made
------------------------------------------- ------------------------------- -------------------------------
<S>                                         <C>                             <C>
Interep National Radio Sales, Inc.                      New York                   Secretary of State
Allied Radio Partners, Inc.                             New York                   Secretary of State
American Radio Sales, Inc.                              New York                   Secretary of State
Caballero Spanish Media, LLC                            New York                   Secretary of State
D&R Radio, Inc.                                         New York                   Secretary of State
Infinity Radio Sales, Inc.                              New York                   Secretary of State
McGavren Guild, Inc.                                    New York                   Secretary of State
Morrison and Abraham, Inc.                              New York                   Secretary of State
Public Radio Network, Inc.                              New York                   Secretary of State
</TABLE>

                                   SCHEDULE 2
               STATE OF INCORPORATION; PRINCIPAL EXECUTIVE OFFICE

<TABLE>
<CAPTION>
                                 Other Names Under Which Grantor Has Done Business Within
           Grantor                                   the Past Five Years
------------------------------ -------------------------------------------------------------
<S>                            <C>
Allied Radio Partners, Inc.    Concert Music Network
American Radio Sales, Inc.     ABC Radio Sales
Infinity Radio Sales, Inc.     Infinity Sports; Group W Radio Sales, Inc.; CBS Radio Sales, Inc.
</TABLE>

<TABLE>
<CAPTION>
                                                              Organization
                                         Jurisdiction of     Identification        Location of Chief
             Grantor                      Incorporation           Number            Executive Office
-------------------------------------- ------------------- ------------------ ----------------------------
<S>                                    <C>                 <C>                <C>
Interep National Radio Sales, Inc.          New York         Not applicable    100 Park Avenue, New York,
                                                                               New York 10017
Allied Radio Partners, Inc.                 New York         Not applicable    100 Park Avenue, New York,
                                                                               New York 10017
American Radio Sales, Inc.                  New York         Not applicable    100 Park Avenue, New York,
                                                                               New York 10017
Caballero Spanish Media, LLC                New York         Not applicable    100 Park Avenue, New York,
                                                                               New York 10017
D&R Radio, Inc.                             New York         Not applicable    100 Park Avenue, New York,
                                                                               New York 10017
</TABLE>

                                       iv

<PAGE>

<TABLE>
<S>                                    <C>                 <C>                <C>
Infinity Radio Sales, Inc.             New York            Not applicable     100 Park Avenue, New York,
                                                                              New York 10017
McGavren Guild, Inc.                   New York            Not applicable     100 Park Avenue, New York,
                                                                              New York 10017
Morrison and Abraham, Inc.             New York            Not applicable     100 Park Avenue, New York,
                                                                              New York 10017
Public Radio Network, Inc.             New York            Not applicable     100 Park Avenue, New York,
                                                                              New York 10017
</TABLE>

                                   SCHEDULE 3
                       LOCATION OF INVENTORY AND EQUIPMENT

<TABLE>
<CAPTION>
       State                                Location
-------------------- -----------------------------------------------------------
<S>                  <C>
California           110880 Wilshire Boulevard, Suite 1000
                     Los Angeles, California 90024

                     101 S. Hayworth Ave., #2
                     Los Angeles, California, 90048

                     798 Lighthouse Avenue, Ste. 300
                     Monterey, California 93940

                     505 Sansome Street, 2nd Floor
                     San Francisco, California 94111

                     650 5th Street Suite 405
                     San Francisco, California 94107

                     1714 Olive Avenue
                     Santa Barbara, California 93101

Connecticut          17 Saw Mill Road
                     Burlington, Connecticut 06013

                     P. O. Box 394 Candlewood Isle
                     New Fairfield, Connecticut 06812

Colorado             4219 Rockview Court
                     Fort Collins, Colorado 80526

Florida              4141 Crossroads Place
                     Casselberry, Florida 32707-5279

                     1300 Coral Way, Suite 204
                     Miami, Florida 33145

Georgia              400 Interstate N. Parkway, Suite 400
                     Atlanta, Georgia 30339

Illinois             205 N. Michigan Avenue, Suite 2015
                     Chicago, Illinois 60601
</TABLE>

                                       v

<PAGE>

<TABLE>
<CAPTION>
       State                                Location
-------------------- -----------------------------------------------------------
<S>                  <C>
                     2836 Canterbury Drive
                     Northbrook, Illinois 60062

Kansas               6635 Nall Drive
                     Mission, Kansas 66202

Massachusetts        31 St. James Avenue, Suite 950
                     Boston, Massachusetts 02116

                     53 Union Park, #4
                     Boston, Massachusetts 02118

                     15 Summerville Road
                     Foxoboro, Massachusetts 02035

                     1191 North Main Street, Suite 206
                     Randolph, Massachusetts 02368

                     145 Tremont Street
                     Taunton, Massachusetts 02780

                     15 N. Gateway
                     Winchester, Massachusetts 01890

Michigan             26555 Evergreen Road, Suite 450, Suite 121
                     Southfield, Michigan 48076

                     1995 E. Snell Road
                     Rochester, Michigan 48306

Minnesota            100 South Fifth Street
                     Minneapolis, Minnesota 55402

                     10505 Wayzata Blvd. Suite 204
                     Minnetonka, Minnesota 55305

Missouri             515 Olive Street, Suite 702
                     St. Louis, Missouri 63101

                     200 South Brentwood Blvd., 7B
                     St. Louis, Missouri 63105
</TABLE>

                                       vi

<PAGE>

<TABLE>
<CAPTION>
       State                                Location
-------------------- -----------------------------------------------------------
<S>                  <C>
New York             100 Park Avenue, 5th and 6th Floors
                     New York, New York 10017

                     106 Central Park South, #3-A
                     New York, New York 10017

                     70 Haven Avenue, Apt. 3D
                     New York, New York 10032

                     The Tuxedo Park Executve Conference Center Proprietarship
                     One Serpentine Road
                     Tuxedo, New York 10987

Ohio                 4654 Leadwell Lane
                     Cincinnati, Ohio 45242

                     441 Vine Street, Ste. 3001
                     Cincinnati, Ohio 45202

Oregon               11680 SW Summer Crest Drive
                     Tigard, Oregon 97223

Pennsylvania         325-41 Chestnut Street, Suite 300
                     Philadelphia, Pennsylvania 19106

Texas                5000 Quorum, Suites 700, 725
                     Dallas, Texas 75240-7500

                     3500 Maple Avenue, Suite 1320
                     Dallas, Texas 75219

                     9321 Canondale Drive
                     Frisco, Texas 75034

Virginia             830 West Braddock Road
                     Alexandria, Virginia 22302

                     10812 Scott Drive
                     Fairfax, Virginia 22030

Washington           130 Nickerson Street, Suite 300
                     Seattle, Washington 98109

                     3142 Alki Avenue SW, Apt. 401
                     Seattle, Washington 98116

Washington, D.C.     608-B Cameron Street
                     Alexandria, Virginia 22314
</TABLE>

                                      vii

<PAGE>

                                   SCHEDULE 4
                         MATERIAL INTELLECTUAL PROPERTY

                               Material Trademarks

<TABLE>
<CAPTION>
                       Trademark                            Registration Date            Registration Number
------------------------------------------------------ --------------------------- -----------------------------
<S>                                                    <C>                         <C>
Allied Radio Partners                                           7/15/97                      2,079,087
Converging Media 20:20                                          8/13/02                      2,608,028
Country Radio Format Network                                    8/23/94                      1,850,836
E-Radio                                                         1/18/00                      2,309,898
E-Radio Sales                                                   6/20/00                      2,360,699
Interep                                                         8/23/88                      1,501,570
Interep (and design)                                            8/23/88                      1,501,571
Interep Interactive and design                                  4/18/00                      2,343,602
Radio 20:20                                                      5/1/01                      2,447,356
Radioexchange                                                   6/18/02                      2,580,769
Selling Today...Innovating For Tomorrow                         4/11/00                      2,340,620
Shop Healthy Sweepstakes                                        7/23/02                      2,598,139
Stationscan                                                     2/18/97                      2,038,896
U Can Win                                                      12/15/98                      2,211,596
Urban Radio Format Network                                      8/23/94                      1,850,838
</TABLE>

                         Material Trademark Applications

<TABLE>
<CAPTION>
                         Trademark                        Date Application Filed          Serial Number
------------------------------------------------------ --------------------------- -----------------------------
<S>                                                    <C>                         <C>
Conversion Media 2020                                               5/4/00                    76/039614
Conversion Media Marketing                                          5/4/00                    76/039616
Conversion Media Sales                                              5/4/00                    76/039615
Eradio                                                              9/9/02                    78/162011
E-Radio 20:20                                                      3/30/01                    78/055962
E-Radio Resource                                                   5/31/02                    78/132341
Radio 2005                                                          5/4/00                    76/039613
Radioxchange                                                      12/10/01                    78/097565
The Interep Radio Store and design                                 4/18/00                    76/028618
</TABLE>

                                   SCHEDULE 5
                    DEPOSIT ACCOUNTS AND SECURITIES ACCOUNTS

<TABLE>
<CAPTION>
              Company                    Bank        Account Number     Type of Account
------------------------------------ ------------- ------------------ -------------------
<S>                                  <C>           <C>                <C>
Interep National Radio Sales; Allied Wachovia Bank 14227514           Operational Account
Radio Partners, Inc.; American Radio
Sales, Inc.; Caballero Spanish Media
LLC; D&R Radio, Inc. Infinity  Radio
</TABLE>

                                      viii

<PAGE>

<TABLE>
<S>                                     <C>               <C>                <C>
Sales, Inc.; and McGavren Guild, Inc.

Interep National Radio Sales; Allied    Wachovia Bank     14227503           Non A/R depository
Radio Partners, Inc.; American Radio                                         Account
Sales, Inc.; Caballero Spanish Media
LLC; D&R Radio, Inc. Infinity Radio
Sales, Inc.; and McGavren Guild, Inc.

Interep National Radio Sales; Allied    Wachovia Bank     14228119           Money Market Account
Radio Partners, Inc.; American Radio
Sales, Inc.; Caballero Spanish Media
LLC; D&R Radio, Inc. Infinity Radio
Sales, Inc.; and McGavren Guild, Inc.

Interep National Radio Sales; Allied    Fleet Bank        131865151          Galaxy Prime MM
Radio Partners, Inc.; American Radio                                         Account - 155
Sales, Inc.; Caballero Spanish Media
LLC; D&R Radio, Inc. Infinity Radio
Sales, Inc.; and McGavren Guild, Inc.

Interep National Radio Sales; Allied    Signature         NK2-012750         Prime Fund - Capital
Radio Partners, Inc.; American Radio    Securities/                          Reserves
Sales, Inc.; Caballero Spanish Media    Salans
LLC; D&R Radio, Inc. Infinity Radio
Sales, Inc.; and McGavren Guild, Inc.

Morrison and Abraham, Inc.              Fleet Bank        003648-5758        MM

Morrison and Abraham, Inc.              Fleet Bank        002790-9355        Operational

Public Radio Network, Inc.              None              None               None
</TABLE>

                                       ix

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