Document:

<PAGE>

                                                                    Exhibit 10.7

                          SECURITIES PURCHASE AGREEMENT

                                      AMONG

                              LBI HOLDINGS I, INC.

                                       AND

                  THE SEVERAL PURCHASERS NAMED IN SCHEDULE 2.1

                           Dated as of March 20, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>
                                                  ARTICLE I

                                                 DEFINITIONS

                                                  ARTICLE II

                                 SALE AND PURCHASE OF PURCHASED SECURITIES

Section 2.1.      Sale and Purchase of Purchased Securities ..................................................   7
Section 2.2.      Closing ....................................................................................   7
Section 2.3.      Use of Proceeds ............................................................................   7
Section 2.4.      The Notes ..................................................................................   8

                                                  ARTICLE III

                                REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Section 3.1.      Incorporation and Restatement of Representations and Warranties ............................  10
Section 3.2.      Consents ...................................................................................  10
Section 3.3.      Registration Rights ........................................................................  10
Section 3.4.      Capitalization .............................................................................  10
Section 3.5.      Subsidiaries ...............................................................................  11
Section 3.6.      Subchapter S Status ........................................................................  11
Section 3.7.      Transactions with Affiliates ...............................................................  11
Section 3.8.      Disclosure .................................................................................  11

                                                  ARTICLE IV

                                           PURCHASERS' REPRESENTATIONS

Section 4.1.      Investment Intent ..........................................................................  12
Section 4.2.      Authorization, etc. ........................................................................  12
Section 4.3.      Enforceability .............................................................................  12
Section 4.4.      Certain Other Matters ......................................................................  12
Section 4.5.      S Corporation Status .......................................................................  12

                                                  ARTICLE V

                       CONDITIONS TO EACH PURCHASER'S OBLIGATIONS TO PURCHASE AT THE CLOSING

Section 5.1.      Related Agreements .........................................................................  13
Section 5.2.      Charter Documents; Good Standing Certificates ..............................................  13
Section 5.3.      Proof of Corporate Action ..................................................................  13
Section 5.4.      Incumbency Certificate .....................................................................  14
Section 5.5.      Legal Opinion ..............................................................................  14
</TABLE>

                                       i

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>

                                                                                                               Page
<S>                                                                                                            <C>
Section 5.6.      Representations and Warranties; Officer's Certificate ......................................  14
Section 5.7.      Legality; Governmental and Other Authorizations ............................................  14
Section 5.8.      Payment of Certain Fees and Disbursements ..................................................  14
Section 5.9.      Intercreditor Agreements ...................................................................  14
Section 5.10.     Other Indebtedness .........................................................................  15
Section 5.11.     Solvency Assurances ........................................................................  15
Section 5.12.     Legal Opinions .............................................................................  15
Section 5.13.     General ....................................................................................  15

                                              ARTICLE VI

                               CONDITIONS TO THE COMPANY'S OBLIGATIONS

Section 6.1.      Representations ............................................................................  15
Section 6.2.      Related Agreements .........................................................................  15

                                              ARTICLE VII

                               AFFIRMATIVE AND NEGATIVE COVENANTS

Section 7.1.      Corporate Existence; Subsidiaries; Maintenance of Properties ...............................  16
Section 7.2.      Insurance ..................................................................................  16
Section 7.3.      Taxes ......................................................................................  16
Section 7.4.      Compliance with Laws, Contracts, Licenses and Permits ......................................  17
Section 7.5.      Distributions ..............................................................................  17
Section 7.6.      Transactions with Affiliates ...............................................................  17
Section 7.7.      Undertakings of Lenard Liberman and Jose Liberman ..........................................  18

                                              ARTICLE VIII

                               COVENANTS APPLICABLE TO DELIVERY OF INFORMATION

Section 8.1.      Annual Statements ..........................................................................  18
Section 8.2.      Monthly and Quarterly Statements ...........................................................  18
Section 8.3.      Officer's Certificate ......................................................................  19
Section 8.4.      Operating Budgets ..........................................................................  19
Section 8.5.      Other Information; Confidentiality .........................................................  19
Section 8.6.      Meetings with Management of the Company ....................................................  19
Section 8.7.      Notice of Event of Default .................................................................  19
Section 8.8.      Board of Directors .........................................................................  20

                                              ARTICLE IX

                                               DEFAULTS
</TABLE>

                                       ii

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>
                                                                                                             Page
<S>                                                                                                         <C>
                                           ARTICLE X

                                    REMEDIES ON DEFAULT, ETC.

                                           ARTICLE XI

                       SUBSEQUENT HOLDERS OF PURCHASED SECURITIES OR REGISTRABLE
                                           SECURITIES

                                           ARTICLE XII

                                      EXPENSES; INDEMNITY

Section 12.1.     Expenses ...................................................................................  25
Section 12.2.     Indemnification ............................................................................  25
Section 12.3.     Brokers' Fees ..............................................................................  26
Section 12.4.     Survival of Obligations ....................................................................  26

                                           ARTICLE XIII

                                             NOTICES

                                           ARTICLE XIV

                          SURVIVAL AND TERMINATION OF COVENANTS, AGREEMENTS,
                                   REPRESENTATIONS AND WARRANTIES

                                           ARTICLE XV

                                      AMENDMENTS AND WAIVERS

                                           ARTICLE XVI

                       CHOICE OF LAW; SUBMISSION TO JURISDICTION AND WAIVER OF JURY
                                     TRIAL; DISPUTE RESOLUTION

Section 16.1.     Governing Law ............................................................................... 28
Section 16.2.     Consent To the Exclusive Jurisdiction Of the Courts Of The Commonwealth of Massachusetts .... 28
Section 16.3.     Waiver Of Jury Trial ........................................................................ 28
Section 16.4.     Equitable Remedies .......................................................................... 29
Section 16.5.     Intercreditor Agreements                                                                      29
</TABLE>

                                      iii

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>

                                                                                Page
<S>                                                                             <C>
                                    ARTICLE XVII

                                 RIGHT TO PUBLICIZE

                                    ARTICLE XVIII

                  ENTIRE AGREEMENT; COUNTERPARTS; SECTION HEADINGS
</TABLE>

                                       iv

<PAGE>

                               TABLE OF CONTENTS

LIST OF EXHIBITS

EXHIBIT A         Form of Junior Subordinated Note
EXHIBIT B         Form of Warrant Agreement
EXHIBIT C         Form of Voting and Co-Sale Agreement
EXHIBIT D         Form of Company Counsel Opinion

<PAGE>

                          SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (the "Agreement") dated as of March 20,
2001 among LBI Holdings I, Inc., a California corporation (the "Company"), and
the several purchasers named in the attached Schedule 2.1 (individually a
"Purchaser" and collectively the "Purchasers").

     WHEREAS, the Company wishes to issue and sell to the Purchasers (i) the
Company's Junior Subordinated Notes in an original aggregate principal amount of
$30,000,000 (in the form attached hereto as Exhibit A, the "Notes"), and (ii)
Warrants to purchase 14.02 shares of the Company's Common Stock (in the form
attached to the Warrant Agreement, the "Warrants") (the Notes and the Warrants
are collectively referred to herein as the "Purchased Securities"); and

     WHEREAS, the Purchasers, severally, wish to purchase such securities on the
terms and subject to the conditions set forth in this Agreement;

     NOW THEREFORE, in consideration of the premises and the mutual covenants
contained in this Agreement, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     For all purposes of this Agreement the following terms shall have the
meanings set forth in this Article I:

     "Affidavit of Loss" has the meaning specified in Section 2.4(g) of this
Agreement.

     "Affiliate" as applied to the Company or any other specified Person, any
Person directly or indirectly controlling, controlled by or under direct or
indirect common control with the Company (or other specified Person) and shall
also include (a) any Person who is a director or beneficial owner of at least 5%
of the Company's then outstanding Capital Securities (or other specified Person)
and Family Members of any such Person, (b) any Person of which the Company (or
other specified Person) or an Affiliate (as defined in clause (a) above) of the
Company (or other specified Person) shall, directly or indirectly, either
beneficially own at least 5% of the Company's then outstanding Capital
Securities or constitute at least a 5% equity participant, and (c) in the case
of a specified Person who is an individual, any Family Member of such Person. As
used in this definition, control means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise.

     "Articles of Incorporation" means the Articles of Incorporation of the
Company, as filed with the California Secretary of State.

     "Business Day" means any day other than a Saturday, Sunday or a legal
holiday in Boston, Massachusetts, Los Angeles, California or New York, New York,
or any other day on which commercial banks in such States are authorized by law
or government decree to close.

<PAGE>

     "Buy-Sell Agreement" means that certain Stock Purchase Agreement dated as
of January 6, 1998 by and among Jose Liberman, Esther Liberman, Lenard Liberman
and the Company, as may be amended from time to time.

     "Capital Securities" means, as to any Person that is a corporation, the
authorized shares of such Person's capital stock, including all classes of
common, preferred, voting and nonvoting capital stock, and, as to any Person
that is not a corporation or an individual, the ownership interests in such
Person, including, without limitation, the right to share in profits and losses,
the right to receive distributions of cash and property, and the right to
receive allocations of items of income, gain, loss, deduction and credit and
similar items from such Person, whether or not such interests include voting or
similar rights entitling the holder thereof to exercise control over such
Person.

     "Charter" means the articles or certificate of incorporation, statute,
constitution, joint venture or partnership agreement or articles or other
organizational document of any Person other than an individual, each as from
time to time amended or modified.

     "Closing" has the meaning given such term in Section 2.2 of this Agreement.

     "Closing Date" has the meaning specified in Section 2.2 of this Agreement.

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

     "Common Stock" means the Common Stock of the Company as set forth in the
Articles of Incorporation.

     "Company" has the meaning specified in the introduction to this Agreement.

     "Company's knowledge" means, the actual knowledge of Jose or Lenard
Liberman, after reasonable good faith inquiry made to ascertain the accuracy of
the representation or warranty.

     "Competitor" means, as of any date, a Person (other than a Purchaser or any
of its Affiliates or beneficial owners) that operates an Hispanic language
format radio or television broadcast station in a market in which the Company or
a Subsidiary has an Hispanic language format radio or television broadcast
station as of such date or any officer, director, employee or Affiliate of such
Person (other than a Purchaser or any of its Affiliates or beneficial owners).
For purposes of Section 8.6 and Section 8.8 hereof only, however, the term
Competitor shall also include a Purchaser or any of its Affiliates or beneficial
owners.

     "Consolidated" or "consolidated" means, with reference to any term defined
herein, that term as applied to the Company's accounts and all of its
Subsidiaries' accounts, that may in accordance with GAAP, be consolidated with
the Company.

     "Convertible Securities" shall mean securities or obligations that are
exercisable for, convertible into or exchangeable for shares of Common Stock.
The term includes options, warrants or other rights to subscribe for or purchase
Common Stock or to subscribe for or purchase other securities that are
convertible into or exchangeable for Common Stock.

                                       2

<PAGE>

     "Damages" has the meaning specified in Section 12.2 of this Agreement.

     "Disabled" means, with respect to any individual, if such individual is
unable to perform the duties assigned to him as an employee of the Company or
one of its Subsidiaries due to physical or mental illness, and such inability
exists for one-hundred and eighty (180) days (including a period of ninety (90)
consecutive days) in any twelve (12) consecutive month period.

     "Distribution" means (a) the declaration or payment of any dividend of cash
or property in respect of any shares of any class of the Company's or any of its
Subsidiaries' Capital Securities or other equity securities; (b) the purchase,
redemption or other retirement of any shares of any class of the Company's or
any of its Subsidiaries' Capital Securities or other equity securities, directly
or indirectly or otherwise; or (c) any other distribution on or in respect of
any shares of any class of the Company's or any of its Subsidiaries' Capital
Securities or other equity securities.

     "Dollars" and the sign "$" mean lawful money of the United States of
America.

     "Event of Default" has the meaning specified in Article IX of this
Agreement.

     "Existing Grants" means those certain rights in the agreements set forth in
Paragraphs 2, 3 and 4 of Schedule 3.4(b) hereto.

     "Family Member" means, as applied to any individual, such individual's
spouse, child (including a stepchild or an adopted child) grandchild, parent,
brother or sister thereof or any spouse of any of the foregoing, and each trust
created for the exclusive benefit of one or more of them.

     "Fully-Diluted Outstanding Equity" has the meaning set forth in the Warrant
Agreement.

     "Generally accepted accounting principles" or "GAAP" means generally
accepted accounting principles in the United States in effect from time to time.

     "Indebtedness" means all obligations, contingent and otherwise, which in
accordance with GAAP should be classified on the obligor's balance sheet as
liabilities, or to which reference should be made by footnotes thereto,
including without limitation, in any event and whether or not so classified: (i)
all debt and similar monetary obligations, whether direct or indirect; (ii) all
liabilities secured by any mortgage, pledge, security interest, lien, charge or
other encumbrance existing on property owned or acquired subject thereto,
whether or not the liability secured thereby shall have been assumed; (iii) all
guaranties, endorsements and other contingent obligations whether direct or
indirect in respect of Indebtedness or performance of others, including any
obligation to supply funds to or in any manner to invest in, directly or
indirectly, the debtor, to purchase Indebtedness, or to assure the owner of
Indebtedness against loss, through an agreement to purchase goods, supplies or
services for the purpose of enabling the debtor to make payment of the
Indebtedness held by such owner or otherwise, and (iv) obligations to reimburse
issuers of any letters of credit.

                                       3

<PAGE>

     "Intercreditor Agreements" means the Senior Lenders Intercreditor Agreement
and the Senior Subordinated Lenders Intercreditor Agreement.

     "Licenses" means those licenses, permits, consents, concessions and other
authorizations of governmental, regulatory or administrative agencies or
authorities, whether foreign, federal, state, or local, required of the Company
to own and lease its properties and assets and to conduct its business as now
and proposed to be conducted.

     "Lien" means (a) any encumbrance, mortgage, pledge, lien, charge or other
security interest of any kind upon any property or assets of any character, or
upon the income or profits therefrom; (b) any acquisition of or agreement to
have an option to acquire any property or assets upon conditional sale or other
title retention agreement, device or arrangement (including a capitalized
lease); or (c) any sale, assignment, pledge or other transfer for security of
any accounts, general intangibles or chattel paper, with or without recourse.

     "Loan Documents" means the Senior Loan Agreement, Senior Lenders
Intercreditor Agreement, Senior Subordinated Loan Agreement and Senior
Subordinated Lenders Intercreditor Agreement.

     "Majority Purchasers" means the Noteholders holding Notes in an aggregate
outstanding principal amount equal to more than 50% of the aggregate outstanding
principal amount of all of the Notes or if the Notes are no longer outstanding
but the Warrants remain outstanding, the holders of more than 50% of the
Warrants, subject to the proxy granted to Alta Communications VIII, L.P. or its
successor pursuant to Section 3.5 of the Voting and Co-Sale Agreement.

     "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations or financial condition of the Company and its
Subsidiaries, taken as a whole, (b) the ability of the Company and its
Subsidiaries, taken as a whole, to perform their material obligations under this
Agreement and the Related Agreements or (c) the validity or enforceability of
the Company's obligations taken as a whole under this Agreement and the Related
Agreements.

     "Material Event of Default" has the meaning specified in Article IX of this
Agreement.

     "Maturity Date" means the earlier to occur of (i) September 20, 2009, (ii)
the acceleration of the obligations of the Company to the Purchasers under the
Notes in accordance with Article IX following the occurrence and continuance of
a Material Event of Default, (iii) a Sale of the Company, (iv) March 20, 2006,
in the event that (and only in the event that) on or prior to such date the
Senior Lenders and Senior Subordinated Lenders have granted the necessary
consents and waivers under the Loan Documents so as to permit the repayment of
the Notes and the repurchase of the Warrants pursuant to Section 5.1 of the
Warrant Agreement and the Warrants are so repurchased, or (v) the date on which
the Company repurchases the Warrants pursuant to Section 5.2 of the Warrant
Agreement.

     "Noteholders" means the holders of the Notes.

     "Notes" has the meaning specified in the Recitals to this Agreement.

                                       4

<PAGE>

     "Other Distributions" has the meaning set forth in Section 7.5.

     "Permitted Holder" is defined as Article XI of this Agreement.

     "Permitted Lines of Business" means the television and radio broadcast
business, television and radio program production, rental of television, radio
and related facilities and properties, outdoor advertising, the leasing of
property, and general business services related to any of the foregoing and any
business incident thereto.

     "Person" means an individual, partnership, corporation, association, trust,
joint venture, unincorporated organization, and any government, governmental
department or agency or political subdivision thereof.

     "Phantom Stock" has the meaning set forth in Section 3.4(b).

     "Purchased Securities" has the meaning specified in the Recitals to this
Agreement.

     "Purchasers" means the purchasers set forth on Schedule 2.1.

     "Registrable Securities" means those shares of Common Stock issuable upon
exercise of the Warrants.

     "Related Agreements" means the Notes, the Warrant Agreement, the Warrants,
the Voting and Co-Sale Agreement and the Articles of Incorporation.

     "Sale of the Company" has the meaning set forth in the Warrant Agreement.

     "Securities Act" means the Securities Act of 1933, as amended, or any
successor federal statute, and the rules and regulations of the Securities and
Exchange Commission thereunder, all as the same shall be in effect at the time.

     "Senior Lenders" means the lenders from to time party to the Senior Loan
Agreement.

     "Senior Lenders Intercreditor Agreement" means that certain Subordination
and Intercreditor Agreement of even date herewith by and among the Company,
Purchasers and Fleet National Bank as Administrative Agent for the Senior
Lenders, as such agreement may be amended from time to time.

     "Senior Loan Agreement" means the Credit Agreement, dated as of March 20,
2001, among LBI Holdings II, Inc., as the borrower, the guarantors party thereto
and Fleet National Bank, as administrative agent, Union Bank of California, N.A.
as syndication agent, and CIT Lending Services Corporation and General Electric
Capital Corporation as co-documentation agents, and the other lenders party
thereto from time to time, and any other replacement or successor agreement
governing Indebtedness incurred to refund or refinance the borrowings and
commitments then outstanding or permitted to be outstanding under the Credit
Agreement, in whole or in part, in each case together with any related notes,
guarantees, and collateral documents executed from time to time in connection
therewith, and in each case as amended, modified, supplemented, extended,
restated, renewed, refunded, restructured, replaced or

                                       5

<PAGE>

refinanced (in whole or in part), including any of the foregoing which increases
the amount of Indebtedness thereunder, from time to time, whether by the same or
any other agent, lender or group of lenders.

     "Senior Subordinated Lenders" means the lenders from time to time party to
the Senior Subordinated Loan Agreement.

     "Senior Subordinated Lenders Intercreditor Agreement" means that certain
Senior Subordination and Intercreditor Agreement of even date herewith by and
among the Company, the Purchasers, Oaktree Capital Management, LLC, individually
and as agent for the Senior Subordinated Lenders and, for purposes of Section 16
only, Fleet National Bank, as agent for the Senior Lenders, as such agreement
may be amended from time to time.

     "Senior Subordinated Loan Agreement" means the Notes Purchase Agreement,
dated as of March 20, 2001, among LBI Intermediate Holdings, Inc., as the
borrower, and the purchasers party thereto from time to time, and Oaktree
Capital Management, LLC, as agent for such purchasers, and any other agreement
governing Indebtedness incurred to refund or refinance the borrowings and
commitments then outstanding or permitted to be outstanding under the Notes
Purchase Agreement, in whole or in part, in each case together with any related
notes, guarantees, and collateral documents executed from time to time in
connection therewith, and in each case as amended, modified, supplemented,
extended, restated, renewed, refunded, restructured, replaced or refinanced (in
whole or in part), including any increase in the amount of Indebtedness
thereunder, from time to time, whether by the same or any other agent, purchaser
or group of purchasers.

     "Significant Subsidiary" has the meaning ascribed to such term in the Code
of Federal Regulations, Title 17, Part 210, as in effect on the date hereof.

     "Subsidiary" means any Person which the Company now or hereafter shall at
the time own and control, directly or indirectly through another Person, at
least a majority of the outstanding Capital Securities entitled to vote
generally; and the term "Subsidiaries" means all of such Persons collectively.

     "Taxes" or "Tax" means (A) all net income, gross income, gross receipts,
sales, use, ad valorem, transfer, franchise, profits, license, withholding,
payroll, employment, excise, severance, stamp, occupation, premium, property or
windfall profits taxes, or other taxes of any kind whatsoever, together with any
interest and any penalties, additions to tax or additional amounts imposed by
any taxing authority (domestic or foreign) upon the Company with respect to all
periods or portions thereof ending on or before the date hereof and/or (B) any
liability of the Company for the payment of any amounts of the type described in
the immediately preceding clause (A) as a result of being a member of an
affiliated or combined group.

     "Third Party Claims" has the meaning specified in Section 12.2 of this
Agreement.

     "Transaction Costs" means any and all costs, fees and expenses of any
broker, finder or placement agent incurred by the Company in connection with the
transactions contemplated herein.

                                       6

<PAGE>

     "Voting and Co-Sale Agreement" means the Voting and Co-Sale Agreement dated
as of the date hereof among the Company, the Purchasers and each of the parties
named therein as "Holders", in the form of Exhibit C hereto, as such agreement
may be amended from time to time.

     "Warrant Agreement" means the Warrant Agreement dated as of the date hereof
among the Company and the Purchasers, in the form of Exhibit B hereto, as such
agreement may be amended from time to time.

     "Warrant Purchase Price" has the meaning specified in the Warrant
Agreement.

     "Warrants" has the meaning specified in the Recitals to this Agreement.

                                   ARTICLE II
                    SALE AND PURCHASE OF PURCHASED SECURITIES

     Section 2.1. Sale and Purchase of Purchased Securities. Subject to all of
the terms and conditions hereof and in reliance on the representations and
warranties set forth herein, including, without limitation, the satisfaction by
the Company of the conditions set forth in Article V hereof, the Company shall
issue and sell to each Purchaser, and each Purchaser, severally, and not
jointly, agrees to purchase from the Company, (a) the Notes in the aggregate
principal amount of $30,000,000 for an aggregate purchase price of $29,500,000
and (b) Warrants in the form attached to the Warrant Agreement to purchase
shares of the Company's Common Stock for an aggregate purchase price of
$500,000, all as set forth opposite the name of such Purchaser on Schedule 2.1.
The Purchasers acknowledge that there are restrictions on transfer of the
Purchased Securities set forth herein, in the Notes, in the Warrant Agreement
and in each Warrant. The sale of the Purchased Securities to each Purchaser at
the Closing shall constitute a separate sale hereunder.

     Section 2.2. Closing. Subject to satisfaction by the Company of the
conditions set forth in Article V hereof, the closing of the purchase and sale
of the Purchased Securities (the "Closing") will take place at the offices of
O'Melveny & Myers LLP, 400 South Hope Street, Los Angeles, California, on the
date hereof (the "Closing Date"). At the Closing, the Company will issue, sell
and deliver to each Purchaser, and each Purchaser shall purchase or acquire from
the Company: (i) the Notes in an aggregate principal amount and for an aggregate
purchase price equal to the amounts as set forth opposite the name of such
Purchaser on Schedule 2.1 under the headings "Principal Amount of Notes
Purchased" and "Purchase Price of Notes Purchased", respectively, and (ii) the
Warrants in the amounts and for the purchase price set forth opposite the name
of such Purchaser on Schedule 2.1 under the headings "Number of Warrants
Purchased" and "Purchase Price of Warrants Purchased", respectively, by wire
transfer in immediately available funds on or before the Closing Date. The
Purchased Securities will be issued on or before the Closing Date, and
registered to each such Purchaser in the Company's records, in the amounts
designated on Schedule 2.1 hereto.

     Section 2.3. Use of Proceeds. Proceeds from the sale of the Purchased
Securities hereunder shall be used by the Company to fund the acquisition of
certain radio and television stations in Texas, to pay Transaction Costs, to
repay certain existing Indebtedness of Company

                                       7

<PAGE>

and its Subsidiaries and for working and growth capital and general corporate
purposes of Company and its Subsidiaries as determined from time to time by the
Company.

     Section 2.4. The Notes.

     (a)  Interest; Payment.

          (i)  The outstanding principal amount of the Notes shall bear interest
     at the rate of 9% per annum compounded annually in arrears on each
     anniversary of the date hereof. Interest shall be calculated on the basis
     of the actual number of days elapsed over a year of 365 days. All accrued
     and unpaid interest on the outstanding principal amount of the Notes
     (including the amounts accrued pursuant to clause (ii) below) shall only be
     due and payable in full and in cash without setoff, deduction or
     counterclaim on the Maturity Date. The Company shall have the option,
     subject to and to the extent permitted by the Loan Documents, but shall not
     be required, to pay accrued and unpaid interest on the outstanding
     principal amount of the Notes in cash without setoff, deduction or
     counterclaim on an annual basis.

          (ii) During the occurrence and continuation of an Event of Default and
     from and after the date of written notice from Majority Purchasers
     declaring that default interest rate will be charged as a result of such
     Event of Default (a "Default Notice"), unless until the same shall be cured
     or waived in writing, the outstanding principal balance of the Notes shall
     accrue at the rate of 4% per annum in excess of the then-applicable
     interest rate, compounded annually in arrears (calculated on the basis of
     the actual number of days elapsed over a 365-day year); provided that such
     rate shall increase by an additional 2% from and after September 20, 2009
     (the "Adjustment Date") and on each six (6) month anniversary of the
     Adjustment Date, so long as the Company has not repaid the Notes in full,
     subject to a maximum rate of 21% per annum, in each case compounded
     annually.

     (b) Mandatory Redemption. On the Maturity Date, subject to and to the
extent permitted by the Loan Documents, the Company shall redeem the Notes in
the amount of the then outstanding principal plus all accrued and unpaid
interest thereon.

     (c) Prepayment. The Company may prepay the Notes in whole or in part at any
time prior to the Maturity Date without penalty or premium, provided such
prepayment shall not reduce the amount of shares issuable under the Warrants.

     (d) Subordination. The Company's obligations under the Purchased Securities
shall be subject to certain subordination terms as set forth in the
Intercreditor Agreements.

     (e) Pro Rata Treatment. Except to the extent otherwise provided herein: (i)
each payment of principal of the Notes shall be made to the Noteholders pro rata
in accordance with the respective unpaid principal amounts of the Noteholders'
respective Notes; (ii) each payment of interest on the Notes shall be made to
the Noteholders pro rata in accordance with the amounts of interest due and
payable to the Noteholders under the Noteholders' respective Notes; and (iii)
each distribution of cash, property, securities or other value received by the
Noteholders in respect of the indebtedness outstanding under the Notes, whether
pursuant to any attachment,

                                       8

<PAGE>

garnishment, execution or other proceedings for the collection thereof or
pursuant to any bankruptcy, reorganization, liquidation or other similar
proceeding or otherwise in respect of the Company or the Subsidiaries, or the
indebtedness under the Notes, after payment of collection and other expenses as
provided herein, shall be apportioned to the Noteholders pro rata in accordance
with the respective unpaid principal amounts of and interest on the Noteholders'
respective Notes, provided that if any of the Noteholders (a "Recovering Party")
shall receive any such payment or distribution disproportionately (a "Recovery")
in respect thereof, such Recovering Party shall pay to the other Noteholders
their respective pro rata shares of such Recovery, unless the Recovering Party
is legally required to return any Recovery, in which case each party receiving a
portion of such Recovery shall return to the Recovering Party its pro rata share
of the sum required to be returned without interest unless that party is
required to pay interest. For purposes of this Agreement, calculations of the
amount of the pro rata share of any Noteholder shall be rounded to the nearest
whole dollar. The Company acknowledges and agrees that if any Recovering Party
shall be obligated to pay to the other Noteholders a portion of any Recovery
pursuant to the foregoing provisions of this subsection (e), the Company shall
be deemed to have satisfied the obligations in respect of indebtedness held by
such Recovering Party only to the extent of the Recovery retained by such
Recovering Party after giving effect to the pro rata payments by such Recovering
Party to the other Noteholders contemplated by the foregoing provisions of this
subsection (e). The obligations of the Company in respect of indebtedness held
by each other Noteholder shall be deemed to have been satisfied to the extent of
the amount of the Recovery required to be distributed to each such other
Investor by the Recovering Party as contemplated above, whether or not any such
Recovery is actually distributed.

     (f) Place of Payments. All payments of principal, interest, fees and other
amounts to be made by the Company under this Agreement and the Notes shall be
made in immediately available funds to the Noteholders, not later than 2:00 P.M.
(Eastern Time) on the date on which such payment shall become due, at the
address of each Noteholder provided Schedule 2.1 hereto. If any payment
hereunder or under the Notes shall be due and payable on a day which is not a
Business Day, the due date thereof shall be extended to the next Business Day,
and interest shall be payable at the applicable rate specified herein through
such extension period.

     (g) Replacement of Notes. Upon receipt of a Noteholders' affidavit or other
evidence reasonably satisfactory to the Company of the loss theft, destruction
or mutilation of any Note and, in the case of any such loss, theft or
destruction, upon delivery of an indemnity agreement reasonably satisfactory to
the Company (which in any event shall not require the posting of a bond or other
security therefor) (an "Affidavit of Loss"), and, in the case of any such
mutilation, upon the surrender of such Note for cancellation, the Company, at
its expense, shall execute and deliver, in lieu of such lost, stolen, destroyed,
or mutilated Note, a new Note of like tenor.

     (h) Original Issue Discount. Together, the Purchased Securities issued in
accordance with this Section constitute an "investment unit" for the purposes of
Section 1273(c)(2)(A) of the Code. In accordance with Sections 1273(c)(2)(A) and
1273(b)(2) of the Code, the issue price of the investment unit is the original
principal amount of the Notes. The parties agree that the issue price of the
Notes is $29,500,000 and the issue price of the Warrants is $500,000. None of
the parties will take any position in its tax returns or otherwise that is
inconsistent with the foregoing.

                                       9

<PAGE>

     (i) Legend. Each new and replacement Note shall contain the legend set
forth in the form of Note attached as Exhibit A hereto.

                                  ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     In order to induce each of the Purchasers to enter into this Agreement and
to purchase the Purchased Securities, the Company hereby represents and warrants
as follows:

     Section 3.1. Incorporation and Restatement of Representations and
Warranties. The representations and warranties of the Company and its
Subsidiaries made in the Senior Subordinated Loan Agreement as of the date
hereof (which representations and warranties are subject to all of the
qualifications, limitations and restrictions contained in the Senior
Subordinated Loan Agreement) and the representations and warranties of the
Company and its Subsidiaries made in Section 4.15 of the Senior Loan Agreement
(which representations and warranties are subject to all of the qualifications,
limitations and restrictions contained in the Senior Loan Agreement) are hereby
incorporated herein by reference and each such representation and warranty is
restated and re-made by the Company to the Purchasers as of the date hereof and
will be deemed to be representations and warranties made by the Company to the
Purchasers under this Agreement and relied upon by the Purchasers in entering
into this Agreement and agreeing to purchase the Purchased Securities.

     Section 3.2. Consents. Based in part on the representations by Purchasers
in Section 4.1, the execution, delivery and performance by the Company of this
Agreement and of each Related Agreement, and the issuance and sale of the
Purchased Securities hereunder, and the issuance of any Common Stock upon
exercise of the Warrants, do not and will not require the approval or consent
of, or any filing with, any governmental authority or agency or any other Person
other than (a) those set forth in Schedule 3.2, (b) those the failure of which
to obtain would not have a Material Adverse Effect, and (c) any required state
securities law filings relating to the issuance and sale of the Purchased
Securities which have been filed or are permitted to be filed after the date of
such issuance and sale (the "Blue Sky Filings").

     Section 3.3. Registration Rights. Except for the rights granted to the
Purchasers pursuant to the Warrant Agreement of even date herewith, no Person
has demand or other registration rights to cause the Company to file any
registration statement under the Securities Act relating to the securities of
the Company or any right to participate in any such registration statement.

     Section 3.4. Capitalization.

     (a) The Company's Capitalization. The Company's authorized Capital
Securities consists solely of 1,000 shares of Common Stock, par value $.01 per
share (collectively, the "Shares"). Of such authorized Shares, and after giving
effect to the transactions contemplated by this Agreement, 200 of such Shares
are issued and outstanding. All of the issued Shares are owned by the Persons
listed on Schedule 3.4(a) and have been duly authorized, validly issued and
outstanding and are fully paid and non-assessable.

                                       10

<PAGE>

     (b) Convertible Securities; Preemptive Rights. Except for the Warrants and
as set forth on Schedule 3.4(b), there are no outstanding rights (either
preemptive or other), or options to subscribe for or purchase from the Company,
or any warrants or other agreements providing for or requiring the issuance or
purchase by the Company of, or any Liens on, any Capital Securities of the
Company or any securities convertible into or exchangeable, for, or exercisable
into, its Capital Securities, or stock appreciation rights, phantom stock rights
or other equity-like instruments (collectively, "Phantom Stock"). No holder of
any security of the Company is entitled to any preemptive or similar rights to
purchase securities from the Company except as otherwise contemplated by this
Agreement or the Related Agreements, except as set forth on Schedule 3.4(b).

     (c) Voting Trust. There are no voting trusts, proxies or agreements
relating to the voting of the Company's Capital Securities, except as set forth
in this Agreement and the Related Agreements and the Buy-Sell Agreement.

     (d) Restrictions on Transfer. There are no restrictions on transfer of the
Warrants or the Shares issuable upon the exercise thereof other than those set
forth in this Agreement and the Related Agreements and those imposed by
applicable securities laws.

     Section 3.5. Subsidiaries. Except as set forth on Schedule 3.5 hereto, the
Company does not have any Subsidiaries and does not own or hold of record and/or
beneficially own or hold, directly or through a Subsidiary, any shares of any
class of the Capital Securities of any corporation or any legal or beneficial
ownership interest in any general or limited partnership, limited liability
company, business trust or joint venture or in any other unincorporated trade or
business enterprise. Except as set forth on Schedule 3.5 hereto, all outstanding
Capital Securities or interests of each such Subsidiary and such other business
enterprises is owned by the Company or another wholly-owned Subsidiary of the
Company as set forth on such Schedule 3.5, free and clear of any Lien (other
than Liens created pursuant to the Senior Loan Agreement and the collateral
documents related thereto), is validly issued and outstanding, and is fully paid
and non-assessable, and there are no commitments for the purchase or sale of,
and no options, warrants or other rights to subscribe for or purchase, any
securities of any such Subsidiary.

     Section 3.6. Subchapter S Status. The Company made a timely and valid
election to be treated as an S corporation (as defined in Section 1361(a) of the
Code) from the date of its formation, and such status has continued without
interruption to the date hereof.

     Section 3.7. Transactions with Affiliates. Except as set forth on Schedule
3.7, no Affiliate of the Company or any Subsidiary other than a wholly-owned
Subsidiary of the Company, is party to an agreement or transaction with the
Company or Subsidiary.

     Section 3.8. Disclosure. No representation, warranty or statement made in
this Agreement, any Related Agreement, or any agreement, certificate, statement
or document furnished by or on behalf of the Company or any of its Subsidiaries
in connection with the purchase of the Purchased Securities, when taken as a
whole, contains or will contain any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained
herein or therein, in light of the circumstances in which they were made, not
misleading in any material respect at the time made.

                                       11

<PAGE>

                                   ARTICLE IV
                           PURCHASERS' REPRESENTATIONS

     Section 4.1. Investment Intent. Each of the Purchasers hereby, severally
and not jointly, represents and warrants to the Company that it, he or she is
(i) an "accredited investor" as defined in Regulation D of the Securities Act
and has such knowledge and experience in financial and business matters that it
or he is capable of evaluating the merits and risks of the prospective
investment in the Company, (ii) acquiring the Purchased Securities to be
purchased by it, him or her pursuant to Section 2 hereof for investment and not
with a view to the distribution thereof, (iii) a lender actively and regularly
engaged in the business of making loans and (iv) has no present intent to
separate ownership of the Notes from ownership of the Warrants. Each of the
Purchasers hereby, severally and not jointly, represents and warrants to the
Company that no commissions, broker fees, finders fees or similar fees are being
paid by the Purchasers in connection with the sale of the Notes or the Warrants.

     Section 4.2. Authorization, etc. Each of the non-individual Purchasers
hereby represents, severally and not jointly, that this Agreement, the
Intercreditor Agreements and the Related Agreements to which it is a party have
been executed by a duly authorized Person on its behalf; and the execution,
delivery and performance hereof and thereof have been duly authorized by all
appropriate action. Each Purchaser hereby represents, severally and not jointly,
that it has the power and authority, and the legal right, to make, deliver and
perform this Agreement, the Intercreditor Agreements and the Related Agreements
to which it is a party, and consummate the transactions contemplated hereby and
thereby. Each Purchaser that is a natural person represents, severally and not
jointly, that each of this Agreement, the Intercreditor Agreements and the
Related Agreements to which he or she is a party has been duly executed and
delivered by such Purchaser.

     Section 4.3. Enforceability. Each of the Purchasers hereby, severally and
not jointly, represents that the execution and delivery by such Purchaser of
this Agreement, the Intercreditor Agreements and each of the Related Agreements
to which it is a party will result in legally binding obligations of such
Purchaser enforceable against it or him in accordance with the respective terms
and provisions hereof and thereof.

     Section 4.4. Certain Other Matters. Each Purchaser hereby, severally and
not jointly, represents that (a) it acknowledges that the Purchased Securities
and the Registrable Securities have not been registered under the Securities Act
and understands that the Purchased Securities and the Registrable Securities
must be held indefinitely unless they are subsequently registered under the
Securities Act or such sale is permitted pursuant to an available exemption from
such registration requirement and (b) if the purchase of the Purchased
Securities and the Registrable Securities were to occur on the date hereof, its
acquisition of the Purchased Securities and the Registrable Securities
contemplated herein would constitute a legal investment as of the date hereof
under the laws and regulations and orders of each jurisdiction to which it may
be subject. Section 4.5. S Corporation Status. Each Purchaser hereby, severally
and not jointly, acknowledges that Company is classified as an "S Corporation"
under Section 1361(a) of the Code and agrees that such Purchaser shall not
(whether pursuant to this Agreement, the Related Agreements or otherwise) take
any action or make any election (or fail to take any action or

                                       12

<PAGE>

make any election if requested by Company) which would result in a termination
of such classification including, without limitation, (i) transferring all or
any portion of the Purchased Securities or Registrable Securities to any Person
other than a Permitted Holder or (ii) exercising the Warrants while the Company
is an S corporation, provided that (A) the Purchasers may exercise the Warrants
at any time on or after the conditions permitting the Board Change Date (as
defined in the Voting and Co-Sale Agreement) have occurred, and (B) the
Purchasers may take any action or make any election or fail to take any action
or make any election if the Company receives an opinion of tax counsel
reasonably acceptable to the Company in form and substance reasonably acceptable
to the Company to the effect that such action or election (or failure to take
such action or make such election) will not result in a termination of the
Company's classification as an S corporation. Any transfer of or exercise of
Warrants or Registrable Securities in violation of this Section 4.5 will be void
and ineffective.

                                   ARTICLE V
                   CONDITIONS TO EACH PURCHASER'S OBLIGATIONS
                           TO PURCHASE AT THE CLOSING

     Each Purchaser's obligation to purchase the Purchased Securities at the
Closing pursuant to Section 2.2 of this Agreement is subject to compliance by
the Company with its agreements and representations herein contained, and to the
satisfaction, on or prior to the Closing Date, of the following conditions:

     Section 5.1. Related Agreements. Each of the Related Agreements (other than
the Company's Articles of Incorporation) shall have been executed and delivered
in a form provided for herein, and each of the Related Agreements shall be in
full force and effect and no term or condition thereof shall have been amended,
modified or waived except with the prior written consent of such Purchaser. All
covenants, agreements and conditions contained in the Related Agreements which
are to be performed or complied with by Company or any of its Affiliates which
is party thereto on or prior to the Closing Date shall have been performed or
complied with in all material respects.

     Section 5.2. Charter Documents; Good Standing Certificates. Such Purchaser
shall have received from the Company (a) a copy of the Company's Charter and the
Charter of each of LBI Intermediate Holdings, Inc. and LBI Holdings II, Inc.
(the "Top Tier Subsidiaries"), in each case certified by the California
Secretary of State to be true and complete as of a date no more than 30 days
prior to the Closing Date, (b) a copy, certified by the Secretary of the Company
and the Top Tier Subsidiaries to be true and complete as of the Closing Date, of
the by-laws thereof; and (c) a certificate, dated not more than 30 days prior to
the Closing Date, of the relevant governmental authority or other appropriate
official of each state in which each of the Company and its Top Tier
Subsidiaries is incorporated or qualified to do business, as to the Company's
and each Top Tier Subsidiary's corporate good standing in such state or
qualification to do business, as the case may be.

     Section 5.3. Proof of Corporate Action. Such Purchaser shall have received
from the Company, as necessary, copies certified by the Secretary thereof to be
true and complete as of the Closing Date, of the records of all corporate action
taken to authorize the execution, delivery

                                       13

<PAGE>

and performance of this Agreement and each of the Related Agreements to which
the Company is a party.

     Section 5.4. Incumbency Certificate. Such Purchaser shall have received
from the Company an incumbency certificate, dated the Closing Date, signed by a
duly authorized officer thereof and giving the name and bearing a specimen
signature of each individual who shall be authorized to sign, in the name and on
behalf of the Company, this Agreement and each of the Related Agreements to
which the Company is or is to become a party, and to give notices and to take
other action on behalf of the Company under each of such documents.

     Section 5.5. Legal Opinion. The Purchasers shall have received from
O'Melveny & Myers LLP, counsel to the Company, an opinion reasonably
satisfactory to the Purchasers and counsel to the Purchasers substantially in
the form set forth as Exhibit D hereto.

     Section 5.6. Representations and Warranties; Officer's Certificate. The
representations and warranties contained or incorporated by reference herein
shall be true and correct in all material respects on and as of the Closing Date
with the same force and effect as though made on and as of the Closing Date
except for those representations and warranties which relate specifically to an
earlier date, provided that such representations and warranties were true and
correct in all material respects as of such earlier date; and the Company shall
have performed and complied in all material respects with all material
conditions and agreements required to be performed or complied with by it prior
to the Closing; and such Purchaser shall have received on the Closing Date a
certificate to these effects signed by an authorized officer of the Company.

     Section 5.7. Legality; Governmental and Other Authorizations. The purchase
of the Purchased Securities by such Purchaser shall not be prohibited by any law
or governmental order or regulation. All necessary consents, approvals,
licenses, permits, orders and authorizations of, or registrations, declarations
and filings with, any governmental or administrative agency or with any other
Person, with respect to any of the transactions contemplated by this Agreement
or any of the Related Agreements, shall have been duly obtained or made and
shall be in full force and effect other than the Blue Sky Filings and those
described on Schedule 5.7 and other than those required to be obtained by the
Purchasers.

     Section 5.8. Payment of Certain Fees and Disbursements. The Purchasers
shall have been reimbursed, subject to and in accordance with Article XII
hereof, for all out of pocket reasonable costs and expenses (including, but not
limited to, reasonable legal and accounting expenses) incurred by it through the
Closing Date in connection with the transactions contemplated by this Agreement
(provided that the Company shall be required to reimburse only the reasonable
legal fees and expenses of Edwards & Angell, LLP, Latham & Watkins, FCC counsel,
and Pillsbury Winthrop LLP, California counsel) and the Company shall have paid
the reasonable legal fees and expenses of Edwards & Angell, LLP, Latham &
Watkins, and Pillsbury Winthrop LLP through the Closing Date in connection with
the transactions contemplated by this Agreement.

     Section 5.9. Intercreditor Agreements. The Intercreditor Agreements shall
have been executed and delivered by the parties other than Purchasers, and the
Intercreditor Agreements shall be in full force and effect and no term or
condition thereof shall have been amended,

                                       14

<PAGE>

modified or waived except with the prior written consent of the Purchasers. All
covenants, agreements and conditions contained in the Intercreditor Agreements
which are to be performed or complied with on or prior to the Closing Date by
other parties thereto shall have been performed or complied with in all material
respects.

     Section 5.10. Other Indebtedness. The Senior Loan Agreement and the Senior
Subordinated Loan Agreement shall have closed and the initial loans shall be
simultaneously funded thereunder.

     Section 5.11. Solvency Assurances. The Purchasers shall have received the
solvency certificates delivered pursuant to the Senior Loan Agreement.

     Section 5.12. Legal Opinions. Each of the legal opinions (including
opinions covering FCC issues) delivered in connection with the acquisition of a
television station closing on the date hereof, together with the FCC opinions of
O'Melveny & Myers LLP delivered pursuant to the Senior Loan Agreement and Senior
Subordinated Loan Agreement, shall be addressed to the Purchasers, or the
Purchasers shall receive letters indicating that they may rely on such opinions
as if they were addressed to them.

     Section 5.13. General. All instruments and legal, governmental,
administrative, corporate and partnership proceedings in connection with the
transactions contemplated by this Agreement and the Related Agreements shall be
reasonably satisfactory in form and substance to the Purchasers in all material
respects. The Purchasers shall have received copies of all material documents,
including, without limitation, records of corporate or other proceedings, the
opinion of counsel contemplated in Section 5.5 hereof, and any material
consents, licenses, approvals, permits and orders required to be secured by the
Company in connection with the transactions contemplated herein or which any
Purchaser may have requested in connection therewith.

                                   ARTICLE VI
                     CONDITIONS TO THE COMPANY'S OBLIGATIONS

     The Company's obligation to sell and issue the Purchased Securities
pursuant to this Agreement is subject to compliance by each of the Purchasers
with the agreements herein contained, and to the satisfaction on or prior to the
Closing Date, of the following conditions:

     Section 6.1.  Representations. The representations made by each Purchaser
in Article IV hereof shall be true and correct in all material respects when
made and shall be true and correct in all material respects as of the Closing
Date.

     Section 6.2.  Related Agreements. Each of the Related Agreements to which
such Purchaser is a party shall have been executed and delivered by such
Purchaser. All covenants, agreements and conditions contained in this Agreement
and the Related Agreements which are to be performed or complied with by such
Purchaser on or prior to the Closing Date shall have been performed or complied
with by such Purchaser in all material respects.

                                       15

<PAGE>

                                  ARTICLE VII
                       AFFIRMATIVE AND NEGATIVE COVENANTS

     The Company covenants that, while any of the Purchased Securities remain
outstanding, the Company will comply, and will cause each of its Subsidiaries to
comply, with the following provisions:

     Section 7.1. Corporate Existence; Subsidiaries; Maintenance of Properties.
Except to the extent permitted under Sections 7.4, 7.16 and Article 8 of the
Senior Subordinated Loan Agreement, as such sections exist on the date hereof,
each of the Company and its Subsidiaries will preserve and keep in full force
and effect its corporate existence and its material rights and material
franchises except for any Subsidiary of the Company which is combined or merged
with and into the Company. Except to the extent permitted under Sections 7.4,
7.16 and Article 8 of the Senior Subordinated Loan Agreement, as such sections
exist on the date hereof, the Company shall at all times own, directly or
indirectly, one hundred percent (100%) of the equity interests in each
Subsidiary, except for any Subsidiary of the Company which is combined or merged
with and into the Company or another Subsidiary. The Company and its
Subsidiaries will not engage in any business other than the Permitted Lines of
Business. Each of the Company and its Subsidiaries will maintain all of its
properties used or useful in the conduct of its business in good condition,
repair and working order (normal wear and tear excepted) and cause to be made
all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary to conduct the
business of the Company. Notwithstanding the foregoing, nothing in this Section
7.1 shall prevent the loss of the corporate existence of any Subsidiary or any
such right or franchise if the preservation is, in the judgment of the Board of
Directors of the Company, no longer desirable in the conduct of the business of
the Company and its Subsidiaries, taken as a whole, and would not have a
Material Adverse Effect.

     Section 7.2. Insurance. Each of the Company and its Subsidiaries will
maintain with financially sound and reputable insurance companies, funds or
underwriters, insurance of the kinds, covering the risks and in the relative
proportionate amounts usually carried by reasonable and prudent companies
conducting businesses similar to that of the Company and its Subsidiaries except
as otherwise determined by the Board. Notwithstanding the foregoing, compliance
with the requirements of Section 6.5 of the Senior Loan Agreement, as such
section exists as of the date hereof, shall constitute compliance with this
Section 7.2.

     Section 7.3. Taxes. Each of the Company and its Subsidiaries will pay and
discharge, or cause to be paid and discharged, before the same shall become
overdue, all Taxes, assessments and other governmental charges imposed upon the
Company and its Subsidiaries and their respective real properties, sales and
activities, or any part thereof, or upon the income or profits therefrom, as
well as all claims for labor, materials, or supplies, which if unpaid might by
law become a Lien or charge upon any of their properties, in each case
non-payment of which would have a Material Adverse Effect; provided, however,
that any such Tax, assessment, charge, levy or claim need not be paid if the
validity or amount thereof shall currently be contested in good faith by
appropriate proceedings and if the Company or any of its Subsidiaries shall have
set aside on its books adequate reserves with respect thereto.

                                       16

<PAGE>

     Section 7.4. Compliance with Laws, Contracts, Licenses and Permits. Each of
the Company and its Subsidiaries will (a) comply in all material respects with
all applicable laws and regulations wherever its business is conducted, (b)
comply with the provisions of its Charter and by-laws, (c) comply in all
respects with this Agreement and the Related Agreements, (d) comply with all
applicable decrees, orders, and judgments and (e) comply in all material
respects with all Licenses, in each case other than clause (c) above, where
non-compliance with which or the failure to obtain which would have a Material
Adverse Effect. If at any time while any Purchased Security is outstanding, any
material authorization, consent, approval, permit or license from any officer,
agency or instrumentality of any government shall become necessary or required
in order that any of the Company or its Subsidiaries may fulfill any of its
obligations hereunder, each of the Company and its Subsidiaries will promptly
take or cause to be taken reasonable steps to obtain such material
authorization, consent, approval, permit or License and furnish the Purchasers
with evidence thereof.

     Section 7.5. Distributions. Neither the Company nor any Subsidiary shall
make any Distribution, other than (i) Distributions between the Company and its
wholly-owned Subsidiaries, or among such wholly-owned Subsidiaries or from any
Subsidiary to any Credit Party (as defined in the Senior Loan Agreement) as
permitted under the Senior Loan Agreement, as such Senior Loan Agreement exists
on the date hereof, (ii) those Distributions necessary to enable the
stockholders of the Company to pay those income taxes (including estimated and
final income taxes) arising from all income of the Company and its Subsidiaries
(including without limitation, income from operations and sales of assets,
whether or not extraordinary) while the Company is an S corporation, (iii)
Distributions in the nature of a stock dividend or stock split, and (iv)
Distributions other than those set forth in clause (i), (ii) and (iii) above
("Other Distributions") in an aggregate amount, when combined with all Other
Distributions from and after the date hereof, not exceeding $10,000,000, except
that the Company may repurchase, pay dividends and pay redemption amounts on the
Purchased Securities and Registrable Securities in accordance with and pursuant
to the terms of this Agreement or any of the Related Agreements.

     Section 7.6. Transactions with Affiliates. Neither the Company nor any of
its Subsidiaries will (i) hire any relative of any of the Company's shareholders
or senior management as an employee or consultant or (ii) engage in any
transaction or enter into any agreement with any Affiliate thereof, except (a)
those between the Company and any wholly-owned Subsidiary or by and among
wholly-owned Subsidiaries of the Company, (b) those set forth on Schedule 7.6,
(c) those permitted pursuant to Section 7.5 hereof, and (d) those on at least as
favorable terms as the terms which could be obtained by the Company or a
Subsidiary, as the case may be, in a comparable transaction made on an arm's
length basis with Persons who are not Affiliates of the Company or any of its
Subsidiaries. Notwithstanding the foregoing, the Company shall not, without the
prior written consent of the Majority Purchasers, (A) issue any Capital
Securities, Convertible Securities or Phantom Stock to an employee, consultant
or Affiliate of the Company or a Subsidiary, except issuances of Capital
Securities, Convertible Securities and Phantom Stock to employees, consultants
and Affiliates of the Company and its Subsidiaries in an aggregate amount
including amounts under the Existing Grants, not exceeding 2.5% of the
Fully-Diluted Outstanding Equity, (B) grant registration rights to any Affiliate
of the Company or a Subsidiary, or (C) effect a Sale of the Company to any
Affiliate of the Company or a Subsidiary other than as permitted by Section 3.2
of the Voting and Co-Sale Agreement.

                                       17

<PAGE>

     Section 7.7. Undertakings of Lenard Liberman and Jose Liberman. Except as
permitted under Section 7.6, Lenard Liberman and Jose Liberman agree that they
will not engage in any Permitted Lines of Business other than through the
Company or a Subsidiary. Further, if requested by the Majority Purchasers after
the Closing, Lenard Liberman shall enter into a subordination agreement with the
Purchasers subordinating his loans to Liberman Broadcasting, Inc. on terms
reasonably acceptable to the Purchasers, Senior Lenders and Lenard Liberman, so
long as the provisions of such subordination agreement do not restrict any
payment to Lenard Liberman that would otherwise be permitted under the Senior
Subordinated Loan Agreement and the intercreditor agreement dated the date
hereof between the Senior Subordinated Lenders and Lenard Liberman. The parties
agree that in the event of a Sale of the Company, unless the amount
distributable to the holders of Warrants is determined as provided in the
definition of Fair Market Value in the Warrant Agreement, then the amount
distributable to the holders of Warrants and stockholders of the Company shall
be reduced to reflect an allowance of 2.5% of the distributable sale proceeds
for those Capital Securities, Convertible Securities and Phantom Stock permitted
by Section 7.6(A) of this Agreement.

                                  ARTICLE VIII
                 COVENANTS APPLICABLE TO DELIVERY OF INFORMATION

     The Company hereby agrees that so long as any Purchased Securities are
outstanding it will comply with, and it will cause its Subsidiaries to comply
with, the following provisions:

     Section 8.1. Annual Statements. Within 120 days after the close of each
fiscal year of the Company, commencing with the fiscal year ending on December
31, 2000, the Company will deliver to each Purchaser (a) audited consolidated
balance sheet and statement of income and retained earnings and of cash flows of
the Company and its Subsidiaries audited by Ernst & Young or any other so-called
"Big-5" accounting firm or any other accounting firm reasonably acceptable to
the Majority Purchasers, which annual financial statements shall show the
financial condition of the Company as of the close of such fiscal year and the
results of the Company's operations during such fiscal year, to be accompanied
by a true copy of said auditors' management letter, if one was provided to the
Company and (b) a comparison of such financial information to the budget for
such year, as well as a comparison of that year's performance to the performance
in the prior year, all on a consolidated basis. Each of the audited financial
statements delivered under Section 8.1(a) shall be certified without a "going
concern" or like qualification by such accounting firm.

     Section 8.2. Monthly and Quarterly Statements. Within 45 days after the end
of each calendar month, the Company will deliver to each of the Purchasers a
consolidated unaudited statement of cash flows of the Company and its
Subsidiaries as of the end of such month and a comparison of that month's cash
flow to the cash flow in the same month of the prior year. Within 60 days after
the end of each fiscal quarter the Company will deliver to each of the
Purchasers consolidated and consolidating unaudited balance sheets and
statements of income and retained earnings and of cash flows for the Company and
its Subsidiaries all as of the end of such fiscal quarter and a comparison of
such cash flow results to the performance in the same quarter of the prior year.

                                       18

<PAGE>

     Section 8.3. Officer's Certificate. In addition to the delivery of
financial statements of the Company and its Subsidiaries pursuant to Sections
8.1 above, in connection with the Company's annual financial statements the
Company shall deliver to each Purchaser a certificate of the President,
Executive Vice President or Chief Financial Officer of the Company, (a) that,
except as may otherwise be indicated therein or provided for in this Agreement,
to the best of his or her knowledge, such statements have been prepared in
accordance with GAAP consistently applied and fairly present, in all material
respects, the consolidated financial condition of the Company and its
Subsidiaries as of the dates specified and the results of their respective
operations and changes in financial position with respect to the periods
specified and (b) to the effect that such officer has caused the provisions of
this Agreement and the Related Agreements to be reviewed and such officer has no
knowledge of the breach of Section 7.5 or 7.6 of this Agreement.

     Section 8.4. Operating Budgets. Each calendar year the Company shall
deliver to each of the Purchasers an operating budget for such calendar year
which shall have been approved by the Company's Board of Directors no later than
30 days before the first month of such calendar year.

     Section 8.5. Other Information; Confidentiality. From time to time, upon
the request of any Purchaser, the Company will furnish such information
regarding the business, affairs, prospects and financial condition of the
Company and its Subsidiaries as such Purchaser may reasonably request. Each
Purchaser may examine the books and records of the Company and its Subsidiaries
and, may, at reasonable times and on reasonable notice and under the supervision
of the Company, inspect its or their respective facilities and may request
information at reasonable times and intervals concerning the general status of
the Company's and the Subsidiaries' financial condition and operations. All
information provided by Company to Purchasers, or any of them, hereunder or
under any of the Related Agreements shall be treated as confidential by the
recipient thereof regardless of whether it is specifically designated as such
and shall not be disclosed to any third parties except in accordance with
Article XVII or be used for any purpose other than analyzing the Company's
performance for purposes of monitoring the Purchaser's investment therein.

     Section 8.6. Meetings with Management of the Company. A representative of
the Purchasers (other than a person acting as a director or in a comparable
position with, or a consultant to, a Competitor or a person having board
visitation rights with a Competitor) shall be entitled to consult with and
advise management of the Company on significant business issues, including
management's proposed annual operating plans. Management will meet with any such
representative as is mutually convenient on a regular basis during each year at
the Company's facilities at mutually agreeable times for such consultation and
advice and to review progress in achieving said plans. The Company has no
obligation to follow any advice rendered by any Purchaser or representative of
Purchasers.

     Section 8.7. Notice of Event of Default. Upon knowledge by the President or
Executive Vice President of the Company of the existence of a condition which
has resulted in an Event of Default, such condition shall be disclosed
immediately to the Purchasers. If a condition which may reasonably lead to an
Event of Default exists and the Company is required

                                       19

<PAGE>

to give notice of such event under either the Senior Loan Agreement or the
Senior Subordinated Loan Agreement, then the Purchasers shall simultaneously
receive a copy of such notice.

     Section 8.8. Board of Directors. The Majority Purchasers may designate one
person (other than a person acting as a director or in a comparable position
with, or a consultant to, a Competitor or a person having board visitation
rights with a Competitor) as an observer to attend meetings of the Boards of
Directors of the Company and its Subsidiaries (each a "Board") and committees
thereof, and such person and each Purchaser shall receive all information
provided to such Board and committee members at the same time as it is provided
to such members, including all notices of meetings.

                                   ARTICLE IX
                                    DEFAULTS

     In each case of the happening and during the continuance of any of the
following events (each of which is herein sometimes called an "Event of Default"
and any of those set forth in subsections (b), (c), (d), (e) or (h) through (l),
subject to the proviso in subsection (e), being sometimes called a "Material
Event of Default"):

     (a) any material representation or warranty made by or on behalf of the
Company in this Agreement or any of the Related Agreements, shall prove to be
false or misleading in any material respect when made or reconfirmed;

     (b) the Company's default in the due observance or performance of, or
compliance with, any covenant contained in Section 7.5 or 7.6, which default or
defaults, individually or in the aggregate have a Material Adverse Effect or a
material adverse effect on the Purchasers, and such default has not been cured
or waived pursuant to a written agreement satisfactory to the Majority
Purchasers within 60 days after written notice thereof from the Majority
Purchasers;

     (c) default in the payment of the principal of any Note, when the same
shall become due and payable, whether at the due date thereof or at a date fixed
for prepayment or by acceleration in accordance with this Article IX or
otherwise and such default continues through the close of business on the
Business Day following the due date;

     (d) default in the payment of interest on any Note, and such default
continues for a period of 60 days;

     (e) default in the due observance or performance of, or compliance with,
any covenant contained in Article 8, and such default has not been cured or
waived pursuant to a written agreement satisfactory to the Majority Purchasers
within 90 days after written notice thereof from the Majority Purchasers;
provided that in the event the Company is in breach of any of the provisions of
Sections 8.1 through 8.7 of this Agreement, such default shall not be considered
a Material Event of Default so long as the Company is in compliance with the
covenants set forth in Sections 6.1, 6.2 and 6.6 of the Senior Loan Agreement,
as such provisions are in effect on the date hereof, and is providing all such
information and access to the Purchasers and their representatives at the same
time as and on the same terms as it is being provided to the lenders or their
agent.

                                       20

<PAGE>

     (f) except as otherwise provided in subsection (b) or (e) of this Article
IX, default or defaults in the due observance or performance of, or compliance
with, any covenant, condition or agreement contained herein or in any of the
Related Agreements by any person other than the Purchasers, which default or
defaults, individually or in the aggregate, have a Material Adverse Effect or a
material adverse effect on the Purchasers, and such default has not been cured
or waived pursuant to a written agreement satisfactory to the Majority
Purchasers within 60 days after written notice thereof from the Majority
Purchasers;

     (g) for any reason any Related Agreement shall not be in full force and
effect in all material respects or shall not be enforceable in all material
respects in accordance with its terms, or any party thereto shall disaffirm its
obligations thereunder in writing, and such default has not been cured or waived
pursuant to a written agreement satisfactory to the Majority Purchasers within
30 days after written notice thereof from the Majority Purchasers;

     (h) the Company or any of its Significant Subsidiaries pursuant to or
within the meaning of Title 11 of the United States Code or any similar Federal
or state law for the relief of debtors or affecting creditors' rights
(collectively, "Bankruptcy Law"):

         (i)   commences a voluntary case or any other action or proceeding with
     respect to itself;

         (ii)  consents by answer or otherwise to the commencement against it of
     an involuntary case or any other action or proceeding;

         (iii) seeks or consents to the appointment of a receiver, trustee,
     assignee, liquidator, custodian or similar official under any Bankruptcy
     Law (collectively, a "Custodian") of it or for all or substantially all of
     its property;

         (iv)  makes a general assignment for the benefit of its creditors; or

         (v)   admits in writing its inability to pay its debts generally as the
     same become due;

     (or takes any comparable action under any foreign laws relating to
     insolvency);

     (i) A court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:

         (i)   is for relief against the Company or any of its Significant
     Subsidiaries in an involuntary case in bankruptcy or any other action or
     proceeding for any other relief;

         (ii)  appoints a Custodian of the Company or any of its Significant
     Subsidiaries or for all or substantially all of the property of the Company
     or any of its Significant Subsidiaries; or

         (iii) orders the winding up or liquidation of the Company or any of
     its Significant Subsidiaries;

                                       21

<PAGE>

     (or any similar relief is granted under any foreign laws) and in each case
the order or decree remains unstayed and in effect for sixty (60) days, or any
dismissal, stay, rescission or termination ceases to remain in effect for sixty
(60) days;

     (j) the holders of Indebtedness under the Senior Loan Agreement or the
Senior Subordinated Loan Agreement accelerate payment of such Indebtedness in
accordance with the respective terms thereof prior to its final scheduled
maturity;

     (k) Lenard Liberman dies, becomes Disabled or ceases to be actively
involved on a full-time basis in the management and operations of the Company
and its Subsidiaries and the Company has not hired another individual of
comparable qualifications and abilities or a person otherwise having reasonable
qualifications and abilities in the broadcast radio and television industries
within 180 days of such occurrence, or Lenard Liberman (together with his
spouse, ancestors, lineal descendents, or heirs and devises and any trusts
controlled by them) is no longer a majority shareholder of the Company (defined
for the purposes of this subsection only as holding greater than 25% of the
Company's Fully-Diluted Outstanding Equity);

     (l) neither Lenard Liberman nor Jose Liberman are actively involved on a
full-time basis in the management and operations of the Company and its
Subsidiaries (whether due to death, Disability or otherwise) and the Company has
not hired as their replacement another individual(s) of comparable
qualifications and abilities or a person otherwise having reasonable
qualifications and abilities in the broadcast radio and television industries,
in each case reasonably acceptable to the Majority Purchasers and Requisite
Holders (as defined in the Senior Subordinated Loan Agreement), within 180 days
of such occurrence, or Jose Liberman and Lenard Liberman collectively (together
with their spouses, ancestors, lineal descendents, or heirs and devises and any
trusts controlled by them) are no longer majority shareholders of the Company
(defined for the purposes of this subsection only as collectively holding
greater than 50% of the Company's Fully-Diluted Outstanding Equity);

     Then and upon every such Event of Default and at any time thereafter during
the continuance of such Event of Default, upon written notice from the Majority
Purchasers declaring that the default rate will be charged, the Interest Rate
shall immediately increase to 13% pursuant to Section 2.4(a)(ii) until such time
as the Company has cured such Event of Default or such Event of Default shall
have been waived by the Majority Purchasers. Upon the occurrence of an Event of
Default under subsection (h) or (i), the Company shall have an immediate
obligation to (i) repay the Notes and any and all other amounts owing by the
Company to the Noteholders hereunder and (ii) purchase the Warrants at the
Warrant Purchase Price, subject to and to the extent permitted by the Loan
Documents. Upon the consummation of a Sale of the Company, the Company shall
have an immediate obligation to repay the Notes and any and all other amounts
owing by the Company to the Noteholders hereunder, subject to and to the extent
permitted by the Loan Documents. In addition, subject to and to the extent
permitted by the Loan Documents, upon the occurrence of a Material Event of
Default, the Majority Purchasers may give written notice of such Material Event
of Default to the Company, and the Company shall have 180 days from receipt of
such notice of Material Event of Default to (i) repay the Notes and any and all
other amounts owing by the Company to the Noteholders hereunder and (ii)
purchase the Warrants at the Warrant Purchase Price. If, at the end of such 180
day period (A) such Material Event of Default shall be continuing and shall not
have been

                                       22

<PAGE>

waived by the Majority Purchasers, and (B) the Company has failed to so repay
the Notes and such other amounts and to so repurchase the Warrants, then,
subject to and to the extent permitted by the Loan Documents, the Majority
Purchasers may declare the Notes and any and all other amounts owing by the
Company hereunder to the Noteholders to be immediately due and payable and
require the Company to purchase the Warrants at the Warrant Purchase Price.

     If (1) such Material Event of Default shall be continuing and shall not
have been waived by the Majority Purchasers, (2) the Majority Purchasers declare
the Notes and all other amounts owing by the Company hereunder to the
Noteholders to be immediately due and payable and require the Company to
purchase the Warrants at the Warrant Purchase Price in accordance with the
immediately preceding sentence, (3) the parties hereto have obtained the consent
of the FCC and any material consent of a state public utilities commission or
comparable state authority, if reasonably deemed by the Company or its counsel
to be necessary, and (4) any applicable waiting periods under Hart-Scott-Rodino
Antitrust Improvement Act of 1976, as amended, shall have terminated, then,
subject to and to the extent permitted by the Loan Documents, the Purchasers
shall have the right to take control of the Board of Directors pursuant to
Section 2.1 of the Voting and Co-Sale Agreement until such obligation to repay
the Notes and such other amounts and to so repurchase the Warrants is honored.

     The Purchasers agree that so long as the Company is an S corporation,
except in the case of a Sale of the Company or at any time on or after the
conditions permitting the Board Change Date have occurred, they shall not
require the Company to pay the principal and interest outstanding under the
Notes without simultaneously requiring the purchase of all of the Warrants for
the Warrant Purchase Price, and vice versa.

     It is understood by the parties hereto that where the phrase "subject to
and to the extent permitted by the Loan Documents" or a similar phrase is used
in this Agreement or in any of the Related Agreements, and where such phrase
qualifies the obligation of the Company to pay any amounts owing to the
Purchasers hereunder or thereunder and/or to purchase or redeem any securities,
such phrase shall be deemed to mean the following: "subject to and to the extent
permitted by the Loan Documents (and to the extent, but only to the extent, that
the Company's Subsidiaries at such time are permitted under the Loan Documents
to pay dividends or other distributions that would enable the Company to make
such payments or to so purchase or redeem such securities, as the case may be)".

                                   ARTICLE X
                            REMEDIES ON DEFAULT, ETC.

     In case any one or more Material Events of Default shall occur and be
continuing, the Purchasers may, subject to the terms of the Intercreditor
Agreements and subject to obtaining any FCC consents or approvals or other
material consents or approvals required in connection therewith, proceed to
protect and enforce the rights of the Purchasers by an action at law, suit in
equity or other appropriate proceeding, whether for the specific performance of
any agreement contained in this Agreement or the Notes, or for an injunction
against a violation of any of the terms hereof or thereof or in and of the
exercise of any power granted hereby or thereby or by law. No right conferred
upon the Noteholders hereby or by the Notes shall be exclusive of any

                                       23

<PAGE>

other right referred to herein or therein or now or hereafter available at law,
in equity, by statute or otherwise.

                                   ARTICLE XI
                   SUBSEQUENT HOLDERS OF PURCHASED SECURITIES
                            OR REGISTRABLE SECURITIES

     The provisions of this Agreement that are for the benefit of each Purchaser
as the holder of any Purchased Securities or Registrable Securities are also for
the benefit of, and enforceable by, all subsequent Permitted Holders of such
Purchased Securities or Registrable Securities, and the provisions of this
Agreement that subject the Purchasers to obligations as the holder of any
Purchased Securities or Registrable Securities also shall subject all subsequent
holders of Purchased Securities and Registrable Securities thereto. Any
transfer, sale, pledge or hypothecation (collectively, "transfer") of any
Purchased Securities or Registrable Securities other than to a Permitted Holder
shall be void and ineffective. As used herein "Permitted Holder" means, any
subsequent transferee (including the initial Purchasers on the date hereof) of
Purchased Securities or Registrable Securities that became such a transferee
pursuant to a transfer that met each of the following conditions: (i) in
connection with such transfer, such transferee shall have executed a counterpart
to the Intercreditor Agreements and an agreement in form and substance
satisfactory to the Company to the effect that such transferee makes each of the
representations set forth herein (subject to the proviso at the end of this
sentence) and in the Related Agreements made by each initial Purchaser on the
date hereof and that such transferee agrees to be bound by the terms of this
Agreement and each of the Related Agreements as if it were the initial Purchaser
on the date hereof, (ii) in connection with any such transfer of all or any
portion of the Warrants, the transferor can and does transfer to the same
transferee a pro rata portion of the original portion of the Notes (and in
connection with any such transfer of all or any portion of the Notes, the
transferor can and does transfer to the same transferee a pro rata portion of
the Warrants), (iii) in connection with any such transfer of any Purchased
Securities or Registrable Securities, the Company shall have received an opinion
of tax counsel reasonably acceptable to the Company in form and substance
reasonably acceptable to the Company to the effect that such transfer will not
terminate the Company's classification as an S corporation, and (iv) such
transferee shall not be a Competitor; provided that a transferee shall not be
required to make the representation contained in Section 4.1(iii) herein if,
notwithstanding the failure to make such representation, the condition in clause
(iii) of this Article IX above shall have been otherwise satisfied. Each holder
of Purchased Securities or Registrable Securities shall give the Company notice
of any transfer by it of any Purchased Securities or Registrable Securities and
comply with each of the requirements set forth in this Article XI prior to such
transfer. Notwithstanding the foregoing, the provisions of Section 4.5 and this
Article XI shall not restrict the transfer of Purchased Securities or
Registrable Securities made pursuant to (a) Section 2.1(b), 3.1 or 3.3 of the
Voting and Co-Sale Agreement, subject to the provisions of Section 3.5 and 4.1
of the Voting and Co-Sale Agreement, or (b) pursuant to Section 5 or 6 of the
Warrant Agreement.

                                       24

<PAGE>

                                  ARTICLE XII
                               EXPENSES; INDEMNITY

     Section 12.1. Expenses. In the event the transactions contemplated by this
Agreement and the Related Agreements shall be consummated or if the transactions
contemplated by this Agreement and the Related Agreements are not consummated by
reason of the failure by the Company to so consummate when legally obligated to
do so hereunder, the Company hereby agrees to pay all reasonable out of pocket
fees, costs and expenses incurred by each Purchaser (such as travel, photocopy
and telephone expenses and including the fees and expenses of one counsel for
the Purchasers and audit and due diligence fees). From and after the Closing,
the Company hereby agrees to pay on demand all reasonable fees, costs and
expenses (including attorneys' fees for one general counsel for the Purchasers
(including, if reasonably necessary, California counsel) and one FCC counsel for
the Purchasers) incurred by each Purchaser in connection with any enforcement,
amendment, modification, approval, consent or waiver with respect to this
Agreement or any Related Agreement, all taxes (other than taxes determined with
respect to income and taxes relating to any transfer of the Purchased Securities
or Registrable Securities other than to the Company) resulting from the sale of
Purchased Securities or Registrable Securities as provided herein, including any
recording fees and filing fees and documentary stamp and similar taxes at any
time payable in respect of this Agreement or the issuance of any of the
Purchased Securities or Registrable Securities, all reasonable out-of-pocket
expenses associated with the Company's or a Subsidiary's Board of Directors or
Board of Directors committee attendance (including as an observer), including
travel and lodging expenses related thereto, and all due diligence and legal
costs related to potential acquisitions and future financings.

     Section 12.2. Indemnification. The Company hereby agrees to indemnify and
hold each of the Purchasers and their (if applicable) general and limited
partners and their respective shareholders, officers, directors, employees and
agents (each an "Indemnitee") harmless from and against any and all actions,
causes of action, or suits brought against them by third parties ("Third Party
Claims") or brought by any Purchaser against the Company ("Purchaser Claims")
and any and all losses, liabilities, damages and expenses, including, without
limitation, reasonable attorneys' fees and disbursements (provided that with
regard to outside counsel to the Indemnitees, the Company shall be liable for
fees or disbursements to one set of attorneys for such parties (and separate FCC
counsel, if reasonably necessary) in any single action unless a potential
conflict of interest under the applicable code of professional responsibility
exists and provided further that Indemnitees shall not be entitled to
reimbursement of such attorneys' fees and disbursements incurred in connection
with a Purchaser Claim in the event such Indemnitees are not the prevailing
party in such Purchaser Claim) (collectively, "Damages") arising from any such
Third Party Claims or Purchaser Claims incurred by any of the Indemnitees as a
result of or relating to (i) any transaction by the Company financed or to be
financed in whole or in part, directly or indirectly, with proceeds from the
sale of any of the Purchased Securities, or (ii) the execution, delivery,
performance or enforcement of this Agreement, the Related Agreements or any
other agreement contemplated hereby or thereby (including, without limitation,
any failure by the Company or any of its Subsidiaries to comply with any of its
covenants or any breach of its representations and warranties in this Agreement,
the Related Agreements or any other agreement contemplated hereby or thereby),
in each case except where such Damages are caused directly by the actions of the
Indemnitee in violation of its obligations under such agreements or

                                       25

<PAGE>

by the gross negligence or willful misconduct of any Indemnitee or their agents
or attorneys-in-fact.

     Section 12.3. Brokers' Fees. The Company hereby agrees to indemnify each of
the Purchasers against and agrees that it will hold each of them harmless from
any claim, demand or liability for any Transaction Costs alleged to have been
incurred by the Company or any Subsidiary or Affiliate in connection with the
transactions contemplated by this Agreement or the Related Agreements.

     Section 12.4. Survival of Obligations. The obligations of the Company and
each of the Purchasers under this Article XII shall survive the transfer of the
Purchased Securities or Registrable Securities and the termination of this
Agreement.

                                  ARTICLE XIII
                                     NOTICES

     All demands, notices, requests, consents and other communications required
or permitted under this Agreement, any Related Agreement or the Purchased
Securities shall be in writing and shall be personally delivered or sent by
facsimile machine (with a confirmation copy sent by one of the other methods
authorized in this Section), commercial (including FedEx) or U.S. Postal Service
overnight delivery service, or, deposited with the U.S. Postal Service mailed
first class, registered or certified mail, postage prepaid, as set forth below:

      If to the Company, addressed to:

      LBI Holdings I, Inc.
      c/o Liberman Broadcasting, Inc.
      1813 Victory Place
      Burbank, CA  91504
      Attention:  Executive Vice President
      Facsimile:  (818) 558-4244
      Telephone:  (818) 563-5722

with a copy to:

      O'Melveny & Myers LLP
      400 South Hope Street
      Los Angeles, CA  90071
      Attention:  Joseph K. Kim, Esq.
      Facsimile:  (213) 430-6407
      Telephone:  (213) 430-6511

If to any Purchaser, to such Purchaser's address as set forth on Schedule 2.1
hereto.

                                       26

<PAGE>

with a copy to:

      Richard G. Small, Esq.
      Edwards & Angell, LLP
      2800 Financial Plaza
      Providence, RI  02903
      Facsimile:  (401) 276-6611
      Telephone:  (401) 276-6582

Notices shall be deemed given upon the earlier to occur of (i) receipt by the
party to whom such notice is directed; (ii) if sent by facsimile machine, on the
day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which
such notice is directed) such notice is sent if sent (as evidenced by the
facsimile confirmed receipt) prior to 5:00 p.m. Eastern Standard Time and, if
sent after 5:00 p.m. Eastern Standard Time, on the day (other than a Saturday,
Sunday or legal holiday in the jurisdiction to which such notice is directed)
after which such notice is sent; (iii) on the first business day (other than a
Saturday, Sunday or legal holiday in the jurisdiction to which such notice is
directed) following the day the same is deposited with the commercial carrier if
sent by commercial overnight delivery service; or (iv) the fifth day (other than
a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is
directed) following deposit thereof with the U.S. Postal Service as aforesaid.
Each party, by notice duly given in accordance therewith may specify a different
address for the giving of any notice hereunder.

                                  ARTICLE XIV
               SURVIVAL AND TERMINATION OF COVENANTS, AGREEMENTS,
                         REPRESENTATIONS AND WARRANTIES

     All covenants, agreements, representations and warranties made herein or in
any other document referred to herein or delivered to any party pursuant hereto
shall be deemed to have been relied on by each such party, notwithstanding any
investigation made by such party or on its behalf. All representations and
warranties made herein or in any of the Related Agreements shall survive the
execution and delivery of this Agreement and of the Purchased Securities.

                                   ARTICLE XV
                             AMENDMENTS AND WAIVERS

     Except as otherwise expressly provided herein, any term of this Agreement
may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only with the written consent of the Company and the Majority
Purchasers. Any amendment or waiver effected in accordance with this Article XV
shall be binding upon the Company and each holder of any Purchased Securities
sold pursuant to this Agreement and any holder of the Registrable Securities,
whether or not such holder expressly consented thereto.

                                       27

<PAGE>

                                  ARTICLE XVI
                    CHOICE OF LAW; SUBMISSION TO JURISDICTION
                  AND WAIVER OF JURY TRIAL; DISPUTE RESOLUTION

     Section 16.1. Governing Law.

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE COMMONWEALTH OF MASSACHUSETTS (WITHOUT GIVING EFFECT TO ANY
CONFLICTS OR CHOICE OF LAWS PROVISIONS WHICH WOULD CAUSE THE APPLICATIONS OF THE
DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER JURISDICTION).

     Section 16.2. Consent To the Exclusive Jurisdiction Of the Courts Of The
Commonwealth of Massachusetts.

     EACH OF THE PARTIES HERETO HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF
THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS AND THE UNITED STATES DISTRICT
COURT FOR THE DISTRICT OF THE COMMONWEALTH OF MASSACHUSETTS, AS WELL AS TO THE
JURISDICTION OF ALL COURTS TO WHICH AN APPEAL MAY BE TAKEN FROM SUCH COURTS, FOR
THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF, OR IN
CONNECTION WITH, THIS AGREEMENT INCLUDING, WITHOUT LIMITATION, ANY PROCEEDING
RELATING TO ANCILLARY MEASURES IN AID OF ARBITRATION, PROVISIONAL REMEDIES AND
INTERIM RELIEF, OR ANY PROCEEDING TO ENFORCE ANY ARBITRAL DECISION OR AWARD.

     EACH PARTY HEREBY EXPRESSLY WAIVES ANY AND ALL RIGHTS TO BRING ANY SUIT,
ACTION OR OTHER PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT
IN OR BEFORE ANY COURT OR TRIBUNAL OTHER THAN THE COURTS OF THE COMMONWEALTH OF
MASSACHUSETTS AND COVENANTS THAT IT SHALL NOT SEEK IN ANY MANNER TO RESOLVE ANY
DISPUTE OTHER THAN AS SET FORTH IN THIS ARTICLE XVI OR TO CHALLENGE OR SET ASIDE
ANY DECISION, AWARD OR JUDGMENT OBTAINED IN ACCORDANCE WITH THE PROVISIONS
HEREOF.

     EACH OF THE PARTIES HERETO HEREBY EXPRESSLY WAIVES ANY AND ALL OBJECTIONS
IT MAY HAVE TO VENUE, INCLUDING, WITHOUT LIMITATION, THE INCONVENIENCE OF SUCH
FORUM, IN ANY OF SUCH COURTS. IN ADDITION, EACH OF THE PARTIES CONSENTS TO THE
SERVICE OF PROCESS BY PERSONAL SERVICE OR ANY MANNER IN WHICH NOTICES MAY BE
DELIVERED HEREUNDER IN ACCORDANCE WITH ARTICLE XIII.

     Section 16.3. Waiver Of Jury Trial.

     EACH OF THE PARTIES HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL
BY JURY IN ANY ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS
AGREEMENT, ANY OF THE OTHER

                                       28

<PAGE>

TRANSACTION DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     Section 16.4. Equitable Remedies. The parties hereto agree that irreparable
harm would occur in the event that any of the agreements and provisions of this
Agreement were not performed fully by the parties hereto in accordance with
their specific terms or conditions or were otherwise breached, and that money
damages are an inadequate remedy for breach of this Agreement because of the
difficulty of ascertaining and quantifying the amount of damage that will be
suffered by the parties hereto in the event that this Agreement is not performed
in accordance with its terms or conditions or is otherwise breached. It is
accordingly hereby agreed that the parties hereto shall be entitled to an
injunction or injunctions to restrain, enjoin and prevent breaches of this
Agreement by the other parties and to enforce specifically such terms and
provisions of such Articles in any court of the United States or any state
having jurisdiction, such remedy being in addition to and not in lieu of, any
other rights and remedies to which the other parties are entitled to at law or
in equity.

     Section 16.5. Intercreditor Agreements. This Agreement and the Related
Agreements are subject in all respects to the Intercreditor Agreements. The
parties agree that all Sections of this Agreement and the Related Agreements are
preempted to the extent in conflict with any provision of either of the
Intercreditor Agreements, unless and until all Senior Indebtedness (as defined
in the Senior Lenders Intercreditor Agreement) and all Senior Indebtedness (as
defined in the Senior Subordinated Lenders Intercreditor Agreement) are paid in
full and discharged and each such Intercreditor Agreement has terminated in
accordance with its terms.

                                  ARTICLE XVII
                               RIGHT TO PUBLICIZE

     Each of the parties hereto hereby agrees that it will not, except as
required by law, issue a press release or make any public statement regarding
the transactions contemplated hereby without the prior approval of the Company
and the Majority Purchasers, provided, however, that following the Closing, the
Majority Purchasers will have the right to publicize their investment in the
Company as contemplated hereby by means of a tombstone advertisement or other
customary advertisement in newspapers and other periodicals which advertisement
shall require the prior approval of and be reasonably acceptable to the Company.
The Company will have the right to inform actual or prospective customers and
lenders of such investment.

     Notwithstanding the foregoing, the Purchasers and any future holders and
transferees of any Purchased Securities or Registrable Securities shall take
normal and reasonable precautions to maintain the confidentiality of all
non-public information obtained pursuant to the requirements of this Agreement
or under any Related Agreement but may, in any event, make disclosures (a)
reasonably required by any bona fide transferee, assignee or participant, in
connection with the contemplated transfer or assignment of the Purchased
Securities or participation therein, (b) as required or requested by any
governmental agency or representative thereof or as required pursuant to legal
process, (c) to its attorneys, accountants and other professional advisers with
an obligation of confidentiality, and to its beneficial holders and current and
prospective investors in funds managed by the Purchasers and/or their
Affiliates, (d) as required by law or (e) in connection with litigation
involving any Purchaser; provided that

                                       29

<PAGE>

(i) such transferee or assignee pursuant to clause (a) agrees in writing to
comply with the provisions of this Article XVII unless specifically prohibited
by applicable law or court order and (ii) in no event shall the Purchasers or
any future holders or transferees be obligated or required to return any
materials furnished by the Company, its Subsidiaries, or any of their respective
representatives.

                                 ARTICLE XVIII
                ENTIRE AGREEMENT; COUNTERPARTS; SECTION HEADINGS

     This Agreement, the Related Agreements and the other writings referred to
herein or delivered pursuant hereto which form a part hereof contain the entire
understanding of the parties hereto with respect to its subject matter. This
Agreement supersedes all prior agreements and understandings between the parties
with respect to its subject matter. Notwithstanding the foregoing, the
provisions of the Intercreditor Agreements shall control with respect to
subordination and exercise of remedies.

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

     The descriptive headings of sections and paragraphs of this Agreement are
inserted for convenience only, and do not constitute a part of this Agreement
and shall not affect in any way the meaning or interpretation of this Agreement.

              [The rest of this page is left blank intentionally.]

                                       30

<PAGE>

IN WITNESS WHEREOF, the Company and the Purchasers have executed this Securities
Purchase Agreement as of the day and year first above written.

                                    COMPANY:

                                    LBI HOLDINGS I, INC.

                                    By: /s/ Lenard Liberman
                                       -----------------------------------------
                                    Name:  Lenard Liberman
                                    Title: Executive Vice President

                                    /s/ Lenard Liberman
                                    --------------------------------------------
                                    Lenard Liberman, solely for purposes of
                                    Section 7.7

                                    /s/ Jose Liberman
                                    --------------------------------------------
                                    Jose Liberman, solely for purposes of
                                    Section 7.7

                                    PURCHASERS:

                                    ALTA COMMUNICATIONS VIII, L.P.

                                    By:  Alta Communications VIII Managers, LLC,
                                             its General Partner

                                    By: /s/ Eileen McCarthy
                                       -----------------------------------------
                                    Name:_______________________________________
                                    Title:______________________________________

                                    ALTA-COMM VIII S BY S, LLC

                                    By: /s/ Eileen McCarthy
                                       -----------------------------------------
                                    Name:_______________________________________
                                    Title:______________________________________

                                       31

<PAGE>

                                    ALTA COMMUNICATIONS VIII-B, L.P.

                                    By:  Alta Communications VIII Managers, LLC,
                                             its General Partner

                           By: /s/ Eileen McCarthy
                              -----------------------------------------------
                           Name:_____________________________________________
                           Title:____________________________________________

                           ALTA VIII ASSOCIATES, LLC

                           By:  Alta Communications, Inc.

                           By: /s/ Eileen McCarthy
                              -----------------------------------------------
                           Name:_____________________________________________
                           Title:____________________________________________

                           CALIFORNIA STATE TEACHERS'
                           RETIREMENT SYSTEM

                           By: /s/ Christopher J. Ailman
                              -----------------------------------------------
                           Name: Christopher J. Ailman
                                ---------------------------------------------
                           Title: Chief Investment Officer
                                 --------------------------------------------

                           BANCBOSTON INVESTMENTS INC.

                           By: /s/ Lars A. Swanson
                              -----------------------------------------------
                           Name:  Lars A. Swanson
                                ---------------------------------------------
                           Title: Director
                                 --------------------------------------------

                           UNIONBANCALEQUITIES, INC.

                           By: /s/ J. Kevin Sampson     /s/ David Bonrouhi
                              -----------------------------------------------
                           Name: J. Kevin Sampson           David Bonrouhi
                                ---------------------------------------------
                           Title: Vice President            Vice President
                                 --------------------------------------------

                                       32

<PAGE>

                                  SCHEDULE 2.1

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                  Number of
   Purchaser's Name and             Principal Amount      Purchase Price of        Warrants       Purchase Price of
         Address                   of Notes Purchased      Notes Purchased        Purchased       Warrants Purchased
----------------------------------------------------------------------------------------------------------------------
<S>                                <C>                   <C>                      <C>             <C>
Alta Communications VIII, L.P.        $15,831,793.00         $15,567,929.79        7.398725         $  263,863.21
200 Clarendon Street
Boston, MA 02109
Attn:  Bob Emmert

----------------------------------------------------------------------------------------------------------------------

Alta-Comm VIII S By S, LLC
200 Clarendon Street                  $   261,783.00         $   257,419.95        0.122340         $    4,363.05
Boston, MA 02109
Attn:  Bob Emmert

----------------------------------------------------------------------------------------------------------------------
Alta Communications VIII-B, L.P.
200 Clarendon Street                  $   881,424.00         $   866,733.60        0.411919         $   14,690.40
Boston, MA 02109
Attn:  Bob Emmert

----------------------------------------------------------------------------------------------------------------------
Alta VIII Associates, LLC
200 Clarendon Street                  $    25,000.00         $    24,583.33        0.011683         $      416.67
Boston, MA 02109
Attn:  Bob Emmert

----------------------------------------------------------------------------------------------------------------------
California State Teachers'
Retirement System                     $ 5,000,000.00         $ 4,916,666.67        2.336667         $   83,333.33
Mail Station #4
Investments Office
7667 Folsom Boulevard
P.O. Box 163749, MS4
Sacramento, CA  95816-3749
Attn:  Deanna Winter
----------------------------------------------------------------------------------------------------------------------

BancBoston Investments Inc.
175 Federal Street                    $ 6,000,000.00         $ 5,900,000.00        2.804000         $  100,000.00
10/th/ Floor
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        1

<PAGE>

<TABLE>
<S>                                 <C>                   <C>                   <C>               <C>
----------------------------------------------------------------------------------------------------------------------
Boston, MA  02110
Attn:  Lars Swanson
----------------------------------------------------------------------------------------------------------------------

UnionBanCal Equities, Inc.
445 South Figueroa St.              $ 2,000,000.00        $  1,966,666.67       0.934667          $    33,333.33
21/st/ Floor
Los Angeles, CA 90071
Attn:  Kevin Sampson

----------------------------------------------------------------------------------------------------------------------

       Totals:                      $30,000,000.00        $ 29,500,000.00          14.02          $   500,000.00

----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                    EXHIBIT A

     THIS INSTRUMENT IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR AGREEMENT
DATED AS OF MARCH 20, 2001 BY AND AMONG LBI HOLDINGS I, INC., A CALIFORNIA
CORPORATION, THE PURCHASERS PARTY TO THE SECURITIES PURCHASE AGREEMENT DESCRIBED
BELOW, AND FLEET NATIONAL BANK, INDIVIDUALLY AND AS ADMINISTRATIVE AGENT (THE
"ADMINISTRATIVE AGENT") FOR THE LENDERS UNDER THE CREDIT AGREEMENT BY AND AMONG
LBI HOLDINGS II, INC. (THE "BORROWER"), THE DIRECT AND INDIRECT SUBSIDIARIES OF
THE BORROWER WHICH ARE CREDIT PARTIES THEREUNDER, THE LENDERS PARTY THERETO AND
THE ADMINISTRATIVE AGENT AND UNION BANK OF CALIFORNIA, N.A. AS SYNDICATION
AGENT, AND CIT LENDING SERVICES CORPORATION AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS CO-DOCUMENTATION AGENTS. BY ITS ACCEPTANCE OF THIS INSTRUMENT,
THE HOLDER HEREOF AGREES TO BE BOUND BY THE PROVISIONS OF SUCH SUBORDINATION AND
INTERCREDITOR AGREEMENT TO THE SAME EXTENT THAT THE SUBORDINATED CREDITORS (AS
DEFINED THEREIN) ARE BOUND.

     THIS INSTRUMENT IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR AGREEMENT,
DATED AS OF MARCH 20, 2001, AMONG LBI HOLDINGS I, INC., THE PURCHASERS PARTY TO
THE SECURITIES PURCHASE AGREEMENT DESCRIBED BELOW, OAKTREE CAPITAL MANAGEMENT,
LLC, INDIVIDUALLY AND AS AGENT FOR CERTAIN HOLDERS, AND OTHERS. BY ITS
ACCEPTANCE OF THIS INSTRUMENT, THE HOLDER HEREOF AGREES TO BE BOUND BY THE
PROVISIONS OF SUCH SUBORDINATION AND INTERCREDITOR AGREEMENT TO THE SAME EXTENT
THAT THE SUBORDINATED CREDITORS (AS DEFINED THEREIN) ARE BOUND.

     THE SECURITIES REPRESENTED BY THIS NOTE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE
STATE LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS THE REGISTRATION PROVISIONS OF SAID ACT AND LAWS HAVE BEEN
COMPLIED WITH OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. FURTHERMORE,
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF TAX COUNSEL REASONABLY ACCEPTABLE TO THE
COMPANY IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY TO THE EFFECT
THAT SUCH SALE, TRANSFER, PLEDGE OR HYPOTHECATION WILL NOT TERMINATE THE
COMPANY'S CLASSIFICATION AS AN S CORPORATION.

                                      A-1

<PAGE>

                       JUNIOR SUBORDINATED PROMISSORY NOTE

[$___________]                                                   March ___, 2001

     FOR VALUE RECEIVED, the undersigned LBI HOLDINGS I, INC., a California
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of [________________] (hereinafter with any subsequent holder referred to
as "Lender"), having its principal place of business at [________________], on
the Maturity Date (as hereinafter defined), the principal amount of [_________
Dollars ($_________)] together with interest thereon, at the rates provided for
in the Securities Purchase Agreement (hereafter described).

     This Note is one of the "Notes" referred to in, and is entitled to all the
benefits of that certain Securities Purchase Agreement dated as of the date
hereof, by and among Borrower, Lender and the other parties signatories thereto
(as may be amended from time to time, the "Securities Purchase Agreement"). All
capitalized terms used herein and not otherwise defined shall have the meanings
given to such terms in the Securities Purchase Agreement.

     Interest on the principal amount outstanding hereunder shall accrue and
shall be paid as provided in the Securities Purchase Agreement.

     The outstanding principal amount of this Note, together with all accrued
interest thereon, shall be due and payable, without setoff, deduction or
counterclaim, on September 20, 2009, or on such earlier date as provided in the
Securities Purchase Agreement (the "Maturity Date").

     Borrower may prepay the outstanding principal amount and accrued interest
hereunder, in full or in part, upon the terms and conditions set forth in the
Securities Purchase Agreement.

     Payments of principal and interest due hereunder shall be made by Borrower
in lawful money of the United States of America and immediately available funds
to Lender at its address set forth in the first paragraph of this Note, or at
such other place as Lender may designate to the Borrower in writing, in
accordance with the Securities Purchase Agreement. All payments hereunder,
unless otherwise determined by Lender, shall be applied first to interest, fees
and expenses then due and the balance, if any, to principal.

     In no event shall the undersigned be required to pay any interest or other
fees or charges in excess of the maximum permitted by applicable law. If, for
any circumstances whatsoever, fulfillment of any provisions hereof or of the
Securities Purchase Agreement, at the time performance of such provision shall
be due, shall involve exceeding such amount, then the obligation to be fulfilled
shall automatically be reduced to the limit of such validity, and if from any
circumstance Lender should ever receive as interest an amount which would exceed
such maximum amount, such amount which would be excessive interest shall be
applied to the reduction of the principal balance evidenced hereby and not to
the payment of interest. As used herein, the term "applicable law" shall mean
the law in effect as of the date hereof; provided, however, that in the event
there is a change in the law which results in a higher permissible rate of
interest, then this Note shall be governed by such new law as of its effective
date. This provision shall control every other provision of all agreements
between Borrower and Lender.

                                      A-2

<PAGE>

     Borrower agrees to pay all costs and expenses (including reasonable
attorneys' fees) incurred by Lender in the collection of this Note and the
enforcement of any agreement or instrument securing this Note.

     Any and all sums at any time due from Lender to Borrower shall at all times
constitute security for this Note and any other obligations of Borrower to
Lender and may be applied or set off by Lender against such obligations whether
or not other collateral is available to Lender.

     Borrower, for itself and its legal representatives, successors and assigns,
hereby expressly waives presentment, dishonor, protest and demand, diligence,
notice of protest of demand and of dishonor, and any other notice otherwise
required to be given under the law in connection with the delivery, acceptance,
performance, default, enforcement or collection of this Note, and expressly
agrees that this Note, or any payment hereunder, may be extended or subordinated
(by forbearance or otherwise) as set forth in the Securities Purchase Agreement.

     No delay or omission on the part of Lender in exercising any right
hereunder shall operate as a waiver of such right or of any other right of
Lender nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. No
consent or waiver by Lender with respect to any action or failure to act which,
without such consent or waiver, would constitute a breach of any provision of
this Note shall be valid and binding unless in writing and signed by Borrower
and Lender.

     Transfer of this Note is registrable on the Note register of Borrower upon
presentation at the principal office of Borrower accompanies by a written
instrument of transfer in form reasonably satisfactory to Borrower duly executed
by, or on behalf of, the holder hereof; provided any such transferee is also a
Permitted Holder. This Note may also be exchanged at such office for one or more
Notes in any authorized denominations, as requested by the holder, of a like
aggregate unpaid principal amount. Any transfer of this Note shall be subject to
the terms of the Securities Purchase Agreement and any such transferee's
agreement to be bound to the terms of the Securities Purchase Agreement, the
Related Agreements and the Intercreditor Agreements, and by acceptance of this
Note the holder agrees to be bound by the terms of the Securities Purchase
Agreement, the Related Agreements and the Intercreditor Agreements.

     Prior to due presentment for registration of transfer, Borrower and any
agent of Borrower may treat the person in whose name this Note is registered as
the owner hereof for the purpose of receiving payment of principal and interest
as herein provided and for all other purposes.

     This Note shall be governed by and construed in accordance with the laws of
the Commonwealth of Massachusetts without giving effect to any choice or
conflict of law provision or rule that would cause the application of the
domestic substantive laws of any other jurisdiction.

     This Note is subject to certain subordination provisions as set forth in
the Intercreditor Agreements.

     BORROWER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION PERTAINING TO THE
ENFORCEMENT OF THIS NOTE OR ANY AGREEMENT OR INSTRUMENT SECURING THIS NOTE.

                                      A-3

<PAGE>

     This Note is executed as of the date first set forth above as a sealed
instrument, shall be binding upon the undersigned and its successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

                                    LBI HOLDINGS I, INC.

Witness:

                                    By:_________________________________________
                                    Name:_______________________________________
                                    Title:______________________________________

                                      A-4<PAGE>

                                                                    Exhibit 10.8

                              LBI HOLDINGS I, INC.

                               FIRST AMENDMENT TO
                SECURITIES PURCHASE AGREEMENT, WARRANT AGREEMENT
                 AND SUBORDINATION AND INTERCREDITOR AGREEMENTS

     THIS FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENT, WARRANT AGREEMENT
AND SUBORDINATION AND INTERCREDITOR AGREEMENTS (this "Amendment") is dated as of
July 9, 2002 and entered into by and among LBI Holdings I, Inc., a California
corporation (the "Company"), the several purchasers (individually, a
"Purchaser," and collectively, the "Purchasers") listed on the signature pages
hereof, for purposes of Sections 3, 5, 7, 8A and 9 only, Fleet National Bank,
individually and as administrative agent for the lenders under the Senior Loan
Agreement dated as of July 9, 2002 ("Fleet"), and, for purposes of Sections 4,
7, 8A and 9 only, Oaktree Capital Management, LLC, individually and as agent for
the Senior Subordinated Lenders (as such term is defined in the Purchase
Agreement prior to giving effect to this Amendment) ("Oaktree").

     This Amendment is made with reference to that certain Securities Purchase
Agreement dated as of March 20, 2001 and entered by and among the Company and
the Purchasers (the "Purchase Agreement"; as amended hereby, the "Amended
Purchase Agreement"), that certain Warrant Agreement dated as of March 20, 2001
and entered by and among the Company and the Purchasers (the "Warrant
Agreement"; as amended hereby, the "Amended Warrant Agreement"), that certain
Subordination and Intercreditor Agreement dated as of March 20, 2001 and entered
by and among the Company, the Purchasers and Fleet (the "Senior Lenders
Intercreditor Agreement"; as amended hereby, the "Amended Intercreditor
Agreement"), that certain Subordination and Intercreditor Agreement dated as of
March 20, 2001 and entered by and among the Company, the Purchasers and Oaktree
(the "Senior Subordinated Lenders Intercreditor Agreement"; as amended hereby,
the "Amended Subordinated Intercreditor Agreement"), and that Investor
Subordination Agreement dated as of March 20, 2001 and entered by and among the
Purchasers and Fleet (the "Investor Subordination Agreement"; as amended hereby,
the "Amended Investor Subordination Agreement" and together with the Amended
Purchase Agreement, the Amended Warrant Agreement, the Amended Intercreditor
Agreement and the Amended Subordinated Intercreditor Agreement, the "Amended
Agreements").

     Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Purchase Agreement.

                                    RECITALS

     WHEREAS, the Company and the Purchasers have previously entered into the
Purchase Agreement and the Warrant Agreement, pursuant to which the Company sold
to the Purchasers (i) Notes in an original aggregate principal amount of
$30,000,000 and (ii) Warrants to purchase a certain number of shares of the
Company's Common Stock;

<PAGE>

     WHEREAS, certain subsidiaries of the Company desire to amend and restate
the existing Senior Loan Agreement and to refinance the existing Senior
Subordinated Loan Agreement by issuing publicly-traded senior subordinated notes
pursuant to an indenture;

     WHEREAS, the obligations under the Notes will be subordinated to the
obligations under the publicly-traded senior subordinated notes and the Purchase
Agreement will be amended to insert certain provisions regarding subordination;

     WHEREAS, the parties hereto desire to amend, to the extent they are a party
thereto, the Purchase Agreement, the Warrant Agreement and the Senior Lenders
Intercreditor Agreement on the terms and subject to the conditions contained
herein;

     WHEREAS, the Company and the Purchasers desire to have the Company reissue
the Warrants and the Notes reflecting the changes set forth in this Amendment,
including the extension of the scheduled maturity date of the Notes to July 9,
2013 and the extension of the scheduled expiration date of the Warrants to
January 9, 2015;

     WHEREAS, the Company, the Purchasers and Oaktree desire to amend the
existing Senior Subordinated Lenders Intercreditor Agreement to reflect the
payment in full of all principal and interest due on the subordinated notes held
by Oaktree;

     WHEREAS, Fleet and the Purchasers desire to amend the Investor
Subordination Agreement.

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

Section 1. AMENDMENTS TO THE PURCHASE AGREEMENT

     1.1   Amendments to Article I: Definitions.

     A. The definition of "Senior Loan Agreement" in Article I of the Purchase
Agreement is hereby amended by adding after the phrase "from time to time"
appearing in the fifth line thereof the phrase ", as amended and restated by the
Amended and Restated Credit Agreement dated as of July 9, 2002 among LBI Media,
as the borrower, the guarantors party thereto and Fleet National Bank, as
administrative agent, General Electric Capital Corporation and U.S. Bank, N.A.,
as co-syndication agents, and CIT Lending Services Corporation and SunTrust
Bank, as co-documentation agents, and the other lenders party thereto from time
to time."

     B. Article I of the Purchase Agreement is hereby amended by deleting each
of the following definitions therefrom in their entirety and substituting the
following therefor:

           "Maturity Date" means the earlier to occur of (i) July 9, 2013, (ii)
     the acceleration of the obligations of the Company to the Purchasers under
     the Notes in accordance with Article IX following the occurrence and
     continuance of a Material Event of Default, (iii) a Sale of the Company,
     (iv) [intentionally left blank] or (v) the date on which the Company
     repurchases the Warrants pursuant to Section 5.2 of the Warrant Agreement.

                                       2

<PAGE>

          "Senior Subordinated Lenders" means the holders of notes from time to
     time issued pursuant to the Senior Subordinated Loan Agreement.

          "Senior Subordinated Lenders Intercreditor Agreement" means Article
     XIX of this Agreement, as such provisions may be amended from time to time.

          "Senior Subordinated Loan Agreement" means the Indenture, dated as of
     July 9, 2002, among LBI Media, as the issuer, the guarantors party thereto
     and U.S. Bank, N.A., as the trustee, and any other agreement governing
     Indebtedness incurred to refund or refinance the borrowings and commitments
     then outstanding or permitted to be outstanding under the Indenture, in
     whole or in part, in each case together with any related notes, guarantees,
     and collateral documents executed from time to time in connection
     therewith, including that certain registration rights agreement dated as of
     July 9, 2002 by and among LBI Media, the Senior Subordinated Note
     Guarantors, and the initial purchasers party thereto for the benefit of the
     Senior Subordinated Lenders, and in each case as amended, modified,
     supplemented, extended, restated, renewed, refunded, restructured, replaced
     or refinanced (in whole or in part), including any increase in the amount
     of Indebtedness thereunder, from time to time, whether by the same or any
     other agent, purchaser or group of purchasers.

     C. Article I of the Purchase Agreement is hereby amended by adding each of
the following definitions thereto in appropriate alphabetical order:

         "Agreement" means the Purchase Agreement, as amended from time to time.

         "LBI Media" means LBI Media, Inc., a California corporation (formerly
known as LBI Holdings II, Inc.).

          "Reorganization" means any distribution of the assets of any entity
     upon any voluntary or involuntary dissolution, winding-up, total or partial
     liquidation or reorganization, or bankruptcy, insolvency, receivership or
     other statutory or common law proceedings or arrangements involving any
     such party or the readjustment of the liabilities of any such party or any
     assignment for the benefit of creditors or any marshaling of the assets or
     liabilities of any such party.

          "Senior Credit Satisfaction" means the repayment in full of all loans,
     advances, extensions of credit and other fees and direct monetary
     obligations (including, without limitation, interest which accrues after
     the commencement of any proceeding in respect of any Reorganization), and
     the termination of all commitments, under the Senior Loan Agreement.

          "Senior Subordinated Notes" means the 10-1/8% Senior Subordinated
     Notes due 2012 of LBI Media, together with any additional notes issued
     pursuant to the Senior Subordinated Loan Agreement, including, but not
     limited to, notes issued in exchange or replacement therefor, and any
     refinancing, refunding or replacement of any of the foregoing.

                                       3

<PAGE>

          "Senior Subordinated Note Guarantors" means each of the direct and
     indirect subsidiaries of LBI Media that are guarantors of the Senior
     Subordinated Notes pursuant to the Senior Subordinated Loan Agreement.

          "Senior Subordinated Note Obligations" means any and all principal,
     interest, premium, penalty, fee, indemnification, reimbursements, damages,
     including liquidated damages, and other indebtedness, obligations and
     liabilities of LBI Media and the Senior Subordinated Note Guarantors to the
     holders of the Senior Subordinated Notes, their successors and assigns, now
     existing or hereafter arising, direct or indirect, absolute or contingent,
     secured or unsecured, arising out of or in connection with the Senior
     Subordinated Loan Agreement and any other document or instrument executed
     in connection with the Senior Subordinated Notes, including any and all
     interest payable pursuant to the Senior Subordinated Loan Agreement and the
     Senior Subordinated Notes at the interest rates provided therein, any
     premium payable in accordance with the terms of the Senior Subordinated
     Loan Agreement and all other fees, expenses, and other amounts due from
     time to time under the Senior Subordinated Loan Agreement and the Senior
     Subordinated Notes.

          "Senior Subordinated Notes Trustee" means the trustee under the Senior
     Subordinated Loan Agreement.

          "Subordinated Agreements" means this Agreement, the Warrant Agreement,
     and the Voting and Co-Sale Agreement.

          "Subordinated Indebtedness" means all existing and hereafter arising
     indebtedness, obligations and liabilities of the Company, LBI Media and its
     direct and indirect subsidiaries or the shareholders of the Company to the
     Permitted Holders, whether direct or contingent, and all claims, rights,
     causes of action, judgments and decrees in respect of the foregoing,
     including, without limitation: (i) the Notes and any notes hereafter issued
     by the Company to the Permitted Holders, including, without limitation, all
     notes issued in respect of payment in kind interest, (ii) the Warrants and
     all warrants hereafter issued pursuant to the Warrant Agreement, (iii) the
     Subordinated Agreements and (iv) all obligations of the Company to
     repurchase or redeem the Notes or the Warrants.

     1.2  Amendments to Article II: Sale and Purchase of Purchased Securities

     A. Section 2.4(a)(i) of the Purchase Agreement is hereby amended by adding
after the phrase "9% per annum" appearing in the second line thereof the phrase
"(or 13% per annum after September 20, 2009), in each case".

     B. Section 2.4(a)(ii) of the Purchase Agreement is hereby amended by
deleting the reference to "September 20, 2009" contained therein and
substituting "July 9, 2013" therefor.

     C. Section 2.4(h) of the Purchase Agreement is hereby amended by deleting
the phrase "or otherwise" in the fourth sentence contained therein.

                                       4

<PAGE>

          1.3 Amendments to Article VII: Affirmative and Negative Covenants

          A. Section 7.1 of the Purchase Agreement is hereby amended by (i)
     deleting the first reference to "under Sections 7.4, 7.16 and Article 8 of
     the Senior Subordinated Loan Agreement, as such sections exist on the date
     hereof" contained therein and substituting "or not prohibited under the
     Senior Subordinated Loan Agreement," (ii) deleting the second reference to
     "under Sections 7.4, 7.16 and Article 8 of the Senior Subordinated Loan
     Agreement, as such sections exist on the date hereof" contained therein and
     substituting "under Sections 4.10, 4.13, and Article 5 of the Senior
     Subordinated Loan Agreement, as such sections exist on July 9, 2002" and
     (iii) adding after the second sentence of such Section 7.1 the following
     sentence:

          "Notwithstanding the foregoing, LBI Intermediate Holdings, Inc. may
          merge with and into LBI Media."

          B. Section 7.2 of the Purchase Agreement is hereby amended by deleting
     the reference to "Section 6.5 of the Senior Loan Agreement, as such section
     exists as of the date hereof" contained therein and substituting "Section
     6.5 of the Senior Loan Agreement, as such section exists as of July 9,
     2002" therefor.

          C. Section 7.5(i) of the Purchase Agreement is hereby amended by
     deleting the phrase "on the date hereof" contained therein and substituting
     therefor the phrase "on July 9, 2002, or Distributions between or among LBI
     Media and/or any of its wholly-owned Subsidiaries."

          D. Section 7.5(ii) of the Purchase Agreement is hereby amended by
     inserting the phrase "or loans" after the phrase "those Distributions."

          E. Section 7.5(iv) of the Purchase Agreement is hereby amended by
     deleting the reference to "$10,000,000" contained therein and substituting
     "$15,000,000" therefor.

          F. Section 7.5 of the Purchase Agreement is hereby further amended by
     inserting the following sentence at the end of such section:

         "Notwithstanding any provision in Section 7.1 or this Section 7.5 to
         the contrary, the Company and its wholly-owned Subsidiaries may cancel,
         forgive or transfer loan receivables made under Section 7.5(ii) owing
         to Company or any of its wholly-owned Subsidiaries from the Company's
         shareholders and such cancellation, forgiveness or transfer shall not
         be deemed as Distributions hereunder."

          G. Section 7.6 of the Purchase Agreement is hereby further amended by
     inserting the following parenthetical at the end of clause (a) after the
     phrase "of the Company":

          "(including without limitation any intercompany note issued by the
          Company to any of its wholly-owned Subsidiaries in connection with
          intercompany loans made by such wholly-owned Subsidiaries to the
          Company)"

          H. Section 7.7 of the Purchase Agreement is hereby amended by deleting
     the second sentence thereof in its entirety and substituting the following
     therefor:

                                       5

<PAGE>

         "If after July 9, 2002, Lenard Liberman, Jose Liberman and/or their
         Family Members shall loan or otherwise extend any credit to the Company
         or its Subsidiaries (except for business expenses to be reimbursed by
         the Company or its Subsidiaries in the ordinary course of business),
         then, if requested by Majority Purchasers, such person shall enter into
         a subordination agreement with the Purchasers subordinating such
         person's loans to the Company and/or its Subsidiaries on terms
         reasonably acceptable to Majority Purchasers, Senior Lenders and such
         person, and which does not restrict any payment to such person that
         would otherwise be permitted under the Senior Subordinated Loan
         Agreement."

         1.4   Amendment to Article VIII: Delivery of Information

         A.  The Purchase Agreement is hereby amended by deleting each reference
     to "the Company" or "the Company's" appearing in Sections 8.1, 8.2, 8.3 and
     8.4 thereof (other than (i) the second reference to "the Company" in such
     Section 8.1, (ii) the first and third references to "the Company" in such
     Section 8.2, (iii) the second reference to "the Company" (not including any
     reference to the phrase "the Company's") in such Section 8.3, and (iv) the
     first reference to "the Company" in such Section 8.4) and substituting
     therefor in each instance the phrase "LBI Media" or "LBI Media's", as
     applicable.

         B.  Section 8.1 of the Purchase Agreement is hereby further amended by
     inserting the following paragraph at the end of such section:

         "Within 120 days after the close of each fiscal year of the Company,
         commencing with the fiscal year ending on December 31, 2002, the
         Company will deliver to each Purchaser an unaudited consolidated
         balance sheet and statement of income and retained earnings and of cash
         flows of the Company and its Subsidiaries, which annual financial
         statements shall show the financial condition of the Company as of the
         close of such fiscal year and the results of the Company's operations
         during such fiscal year, to be accompanied by an officer's certificate
         as described in Section 8.3; provided, however, that in the event the
         Company engages in any activities beyond the activities as permitted by
         Section 7.15 of the Senior Loan Agreement as such provision is in
         effect on July 9, 2002, then the Purchasers shall be entitled to
         request and receive the audited financial statements for Company and
         its Subsidiaries (rather than LBI Media and its Subsidiaries) under
         this Section."

         1.5 Amendment to Article IX: Defaults

         A.  Subsection (e) of Article IX of the Purchase Agreement is hereby
     amended by deleting the reference to "Sections 6.1, 6.2 and 6.6 of the
     Senior Loan Agreement, as such provisions are in effect on the date hereof"
     contained therein and substituting "Sections 6.1, 6.2 and 6.6 of the Senior
     Loan Agreement, as such provisions are in effect on July 9, 2002" therefor.

         B.  Subsection (l) of Article IX of the Purchase Agreement is hereby
     amended by deleting therefrom the phrase "and Requisite Holders (as defined
     in the Senior Subordinated Loan Agreement)."

                                       6

<PAGE>

         1.6 Addition of New Article XIX: Subordination

         The Purchase Agreement is hereby amended by adding after Article XVIII
thereof a new Article XIX as follows:

         "Section 19.1 Payment and Performance Subordinated. Notwithstanding
anything to the contrary in the Subordinated Agreements, the Notes or the
Warrants, but subject to Section 19.4, for so long as any of the Senior
Subordinated Notes are outstanding, the payment and performance of the
Subordinated Indebtedness is, and shall expressly be, subordinate and junior in
right of payment and exercise of remedies to the prior payment in full in cash
of the Senior Subordinated Note Obligations to the extent and in the manner
provided in this Article XIX, and the Subordinated Indebtedness is hereby
subordinated as a claim against the Company, LBI Media, any of their direct or
indirect subsidiaries and the Senior Subordinated Note Guarantors and any of the
assets of, or ownership interests in, such parties whether such claim be in the
event of any Reorganization or otherwise. In furtherance of the foregoing, the
Company will not make, and the Permitted Holders will not demand, accept or
receive, any payment of interest, principal or any payment in respect of the
Subordinated Indebtedness, including, without limitation, any amounts in
connection with a put of the Warrants pursuant to the Warrant Agreement, or
otherwise in respect of the Subordinated Indebtedness, until all of the Senior
Subordinated Note Obligations have been indefeasibly paid in full in cash,
except as permitted pursuant to Section 19.4 hereof. All Senior Subordinated
Note Obligations shall be entitled to the benefits of this Article XIX without
notice thereof being given to any holder of Subordinated Indebtedness.

         Section 19.2 Distribution in Reorganization.

         (a) In the event of any Reorganization relative to the Company, LBI
Media or any of their direct and indirect subsidiaries or any of their
respective properties, all of the Senior Subordinated Note Obligations shall
first be paid in full in cash before any payment on account of principal,
premium or interest or otherwise is made upon or in respect of the Subordinated
Indebtedness, and in any such proceedings any payment or distribution of any
kind or character, whether in cash or property or securities which may be
payable or deliverable in respect of the Subordinated Indebtedness shall, after
Senior Credit Satisfaction, be paid or delivered to the Senior Subordinated
Notes Trustee for application in payment of the Senior Subordinated Note
Obligations, unless and until all such Senior Subordinated Note Obligations
shall have been paid and satisfied in full in cash.

         (b) Each Permitted Holder, for itself and its heirs, legatees,
successors and assigns, hereby irrevocably authorizes and directs the Senior
Subordinated Notes Trustee and any trustee in bankruptcy, receiver, custodian or
assignee for the benefit of creditors of any of the Company, LBI Media or any of
their direct and indirect subsidiaries, whether in voluntary or involuntary
liquidation, dissolution or reorganization, on its behalf to take such action as
may be necessary or appropriate to effectuate the subordination provided for in
this Article XIX and irrevocably appoints, which appointment is coupled with an
interest, upon any Default or Event of Default under the Senior Subordinated
Loan Agreement and during the continuance thereof and upon any failure to comply
with the terms of this Article XIX, the Senior Subordinated Notes Trustee,

                                       7

<PAGE>

or any such trustee, receiver, custodian or assignee, its attorneys-in-fact for
such purpose with full powers of substitution and revocation.

         (c) Notwithstanding the foregoing provisions of this Section 19.2, the
Permitted Holders shall be entitled to receive and retain any securities of the
Company provided for by a plan of reorganization or readjustment or the like,
the payment of which securities is subordinate, at least to the extent provided
in this Article XIX, with respect to the Subordinated Indebtedness, to the
payment of all Senior Subordinated Note Obligations.

         Section 19.3  Effect of Provisions. The provisions of Article XIX as to
subordination are solely for the purpose of defining the relative rights of the
holders of Senior Subordinated Note Obligations, on the one hand, and the
Permitted Holders, on the other hand, and none of such provisions shall impair,
as between the Company and the Permitted Holders, the obligations of the Company
to pay to the Permitted Holders in accordance with the terms of the Senior
Subordinated Note Obligations, nor, except as provided in Section 19.7 below,
shall any such provisions prevent the Permitted Holders from exercising all
rights and remedies otherwise permitted by applicable law or under the terms of
the applicable Subordinated Agreements upon a default thereunder or otherwise,
subject to the rights, if any, of the holders of Senior Subordinated Note
Obligations under the provisions of this Article XIX.

         Section 19.4  Permitted Payments of Subordinated Indebtedness.

         (a) The Company may issue additional Notes to the Permitted Holders as
payment in kind for interest accrued on the Notes in accordance with the terms
of this Agreement, and the Company may issue additional Warrants (or adjust the
number of shares of equity securities underlying Warrants) to the Permitted
Holders in accordance with the Warrant Agreement. Each such additional Note
shall have payment terms (including, without limitation, maturity date and the
absence of any scheduled payments of principal, interest or other amounts prior
to such maturity date) identical to the Notes and shall otherwise be
substantially identical to the Notes, except for any differences in the
principal amount of any such additional Note. Each such additional Warrant shall
have payment terms (including, without limitation, any terms relating to any put
or redemption thereof) identical to the Warrants and shall otherwise be
substantially identical to the Warrants, except for any differences in the
purchase price thereof or the number of shares of Common Stock of the Company
which may be purchased upon exercise thereof. If the Company issues any
additional Note or Warrant pursuant to this Section 19.4(a), such delivery shall
be deemed to constitute a representation of the Company to the holders of Senior
Subordinated Note Obligations and the Permitted Holders that such issuance is
not prohibited under this Article XIX. Until all Senior Subordinated Note
Obligations have been paid in full, the Company shall not issue any instrument,
security or other writing evidencing any part of the Subordinated Indebtedness,
except the additional Notes and additional Warrants that are permitted to be
issued pursuant to this Section 19.4(a). The Permitted Holders shall not assign
or subordinate any part of the Subordinated Indebtedness except in accordance
with this Article XIX.

         (b) The Company may pay the Permitted Holders and the Permitted Holders
may accept and retain (i) payments of accrued interest on the Notes on (but in
no event prior to) the scheduled maturity date (determined without giving effect
to any acceleration of such date

                                       8

<PAGE>

pursuant to the Subordinated Agreements or otherwise) at a per annum rate not
exceeding the rate at which interest is stated to accrue under Section 2.4 of
this Agreement in the absence of a default under any of the Subordinated
Agreements, unless at the time of such proposed payment or immediately after
giving effect thereto, there shall exist any Event of Default under the Senior
Subordinated Loan Agreement (as defined therein), (ii) payments of principal
under the Notes on (but in no event prior to) the scheduled maturity date
(determined without giving effect to any acceleration of such date pursuant to
the Subordinated Agreements or otherwise) in the amounts required to be paid
thereunder on such maturity date, unless at the time of such proposed payment or
immediately after giving effect thereto, there shall exist any Event of Default
under the Senior Subordinated Loan Agreement (as defined therein), (iii) the
redemption of the Notes and/or the repurchase of the Warrants (or any equity
interests of the Company issued to the holder thereof in lieu of, or in
connection with, the exercise of such Warrants) and/or the payment of any
interest or any other obligation under the Subordinated Agreements, the Notes or
the Warrants with (1) proceeds received from LBI Media or any of its
Subsidiaries (in the form of dividends, distributions or loans) so long as the
payment or the making of such dividend, distribution, or loan to the Company by
LBI Media or any of its Subsidiaries is not prohibited by the Senior
Subordinated Loan Agreement or (2) proceeds received by the Company (other than
from LBI Media or any of its Subsidiaries) from the sale of any equity
securities of the Company, and (iv) payments required to be made by the Company
under Section 12.1 of this Agreement for certain fees and expenses (including
legal fees), in each case as and at the times when such reimbursements are due
and payable thereunder. If any holder of Subordinated Indebtedness receives
payment or reimbursement from the Company in accordance with clause (i) or (ii)
of the immediately preceding sentence, such payment shall be deemed to
constitute a representation of the Company to the Senior Subordinated Notes
Trustee and the holders of the Senior Subordinated Notes that no Event of
Default under the Senior Subordinated Loan Agreement exists, and that such
payment is permitted to be paid by the Company under this Article XIX; and the
Permitted Holders shall be entitled to keep and retain such payment unless,
prior to the Clawback Date (as hereinafter defined) the Senior Subordinated
Notes Trustee shall have notified the Company and LBI Media, who shall in turn
notify the Permitted Holders in writing of an Event of Default, in which case
(if such Event of Default in fact existed on the date of such payment) the
Permitted Holders shall forthwith deliver such payment or an amount of cash
equal thereto to the Senior Subordinated Notes Trustee for application in
payment of the Senior Subordinated Note Obligations.

         (c) As used in this Article XIX, the term "Clawback Date" shall mean
(i) with respect to any payment default, 60 days after the occurrence thereof
and (ii) with respect to any other Event of Default, 60 days after the Senior
Subordinated Notes Trustee and holders of the Senior Subordinated Notes knew or,
in the exercise of reasonable diligence, should have known, of such Event of
Default.

         (d) Notwithstanding anything herein or in the Subordinated Agreements
to the contrary, until such time as all Senior Subordinated Note Obligations
have been indefeasibly paid in full in cash, (i) the Company will not make, and
the Permitted Holders will not demand, accept or receive, any payments of cash
under the Subordinated Agreements (including, without limitation, the Notes or
the Warrants (including amounts in respect of a put or repurchase of the
Warrants)) or otherwise in respect of the Subordinated Indebtedness, except as
expressly permitted by Section 19.4(b), and (ii) the Company will not make, and
the Permitted Holders

                                       9

<PAGE>

will not demand, accept or receive any payment of any other assets of any kind
under the Subordinated Agreements or otherwise in respect of the Subordinated
Indebtedness, except for the additional Notes and Warrants issued in accordance
with Section 19.4(a).

         Section 19.5  Agreement to Hold in Trust; Defense to Enforcement. If
any holder of Subordinated Indebtedness shall receive any payment on account of
the Subordinated Indebtedness in violation of this Article XIX, it shall, after
Senior Credit Satisfaction, hold such payment in trust for the benefit of the
holder or holders of the Senior Subordinated Note Obligations and pay it over to
the Senior Subordinated Notes Trustee for application in payment of the Senior
Subordinated Note Obligations. If any holder of Subordinated Indebtedness, in
contravention of the terms of this Article XIX, shall commence, prosecute or
participate in any suit, action or proceeding against the Company, then the
Company may interpose as a defense or plea the making of this Article XIX and
the Senior Subordinated Notes Trustee may intervene and interpose such defense
or plea in its name or in the name of the Company. If any holder of Subordinated
Indebtedness, in contravention of the terms of this Article XIX, shall attempt
to collect any of the Subordinated Indebtedness or enforce any of the
Subordinated Agreements, the Notes or the Warrants, then the Senior Subordinated
Notes Trustee or the Company may, by virtue of this Article XIX, restrain the
enforcement thereof in the name of the Senior Subordinated Notes Trustee and
holders of the Senior Subordinated Note Obligations or in the name of the
Company. If any holder of Subordinated Indebtedness, in contravention of this
Article XIX, obtains any cash or assets of the Company, LBI Media or any of its
direct or indirect subsidiaries as a result of any administrative, legal or
equitable actions, or otherwise, after Senior Credit Satisfaction, such holder
agrees forthwith to pay, deliver and assign to the Senior Subordinated Notes
Trustee, for the benefit of the holders of Senior Subordinated Note Obligations
and the Senior Subordinated Notes Trustee, with appropriate endorsements, any
such cash for application to the Senior Subordinated Note Obligations and any
other assets as collateral for the Senior Subordinated Note Obligations.

         Section 19.6  No Security to the Permitted Holders. The Company shall
not grant, and shall not permit any of its direct or indirect subsidiaries to
grant, and no Permitted Holder shall accept, any security of any nature in
property, real or personal, of the Company or any of its direct or indirect
subsidiaries to secure Subordinated Indebtedness. Any security interest granted
in violation of the terms of this Article XIX shall be null and void and of no
force and effect against the holders of the Senior Subordinated Note
Obligations.

         Section 19.7  Limit on Right of Action.

         (a) The Permitted Holders agree for the benefit of the holders of the
Senior Subordinated Note Obligations that so long as any Senior Subordinated
Notes or any other part of the Senior Subordinated Note Obligations remains
outstanding, but subject to Section 19.4, the Permitted Holders will not,
directly or indirectly, take any action to accelerate or demand payment by the
Company of the Subordinated Indebtedness (including any put of the Warrants
pursuant to the Warrant Agreement), to exercise any of its remedies in respect
of the Subordinated Indebtedness (including any requirement to change the
composition of the Board of Directors of the Company or to cause a "Sale of the
Company" (as defined in the Voting and Co-Sale Agreement) pursuant to the Voting
and Co-Sale Agreement), whether pursuant to any Subordinated Agreement, the
Notes, the Warrants or otherwise, or in respect of any guarantee of

                                       10

<PAGE>

payment thereof, to initiate any litigation against the Company or any of its
direct or indirect subsidiaries or to foreclose or otherwise realize on any
security given by the Company or any other person to secure the Subordinated
Indebtedness prior to the earlier of (i) a Reorganization of the Company or (ii)
180 days after the receipt by the Senior Subordinated Notes Trustee of written
notice of intent to take any such action by the percentage of the Permitted
Holders required to authorize such action under this Agreement, provided that
(x) such notice is given during the continuance of a Material Event of Default
caused by the failure of the Company to make a payment permitted to be made
under clause (i) or (ii) of Section 19.4(b) hereof and (y) any proceeds received
or recoverable by the Permitted Holders in connection therewith shall be subject
to the other provisions of this Article XIX. Notwithstanding anything herein to
the contrary, the Permitted Holders will neither commence nor join with any
other creditor or creditors of the Company or any of its direct or indirect
subsidiaries in commencing any bankruptcy, reorganization or insolvency
proceedings against the Company or any such subsidiary.

         Notwithstanding the foregoing, in the event of a material breach by the
Company of any material covenant contained in this Agreement, the Warrant
Agreement or Voting and Co-Sale Agreement, the Permitted Holders may seek
injunctive relief and state a claim for damages; provided, however, that the
Permitted Holders shall not be entitled to collect or receive any monetary
damages in respect of such claim from the Company or any of its subsidiaries in
connection with such material breach except in accordance with the first
sentence of this Section 19.7.

         (b) The Permitted Holders shall not amend or permit amendment of the
terms of any instrument or agreement evidencing any Subordinated Indebtedness
(including, without limitation, the Subordinated Agreements, the Notes or the
Warrants), the effect of which is to (i) increase principal, interest, fees,
reimbursements or other amounts payable with respect thereto or create any
additional payment obligations thereunder, (ii) accelerate any scheduled or
otherwise required payments of principal, interest, fees, reimbursements or
other amounts, (iii) cause any covenants or other agreements to be more
restrictive upon, or burdensome to, the Company and its Subsidiaries, (iv) alter
any event of default or put provisions contained in the Subordinated Agreements,
the Notes or the Warrants (other than any alterations in favor of the Company
that are permitted under the Senior Subordinated Loan Agreement) or (v) make any
other change which materially adversely affect the interests of the holders of
Senior Subordinated Note Obligations, without the prior written consent of the
Senior Subordinated Notes Trustee.

         Section 19.8 Senior Loan Agreement. Reference is made herein to the
Amended and Restated Credit Agreement dated as of July 9, 2002 by and among LBI
Media, the guarantors party thereto and the lenders party thereto (together with
successors and assignees and lenders party to any other Senior Loan Agreement,
the "Senior Credit Parties") (such Amended and Restated Credit Agreement, and
any amendment, restatement, renewal, refunding, refinancing or replacement
thereto, including, without limitation, any such change to the Amended and
Restated Credit Agreement which increases the amount of indebtedness thereunder
(the "Senior Loan Agreement"). Notwithstanding anything herein to the contrary,
to the extent the rights of holders of Senior Subordinated Note Obligations or
obligations of the Permitted Holders hereunder directly conflict with the rights
of the Senior Credit Parties, the Senior Credit Parties

                                       11

<PAGE>

shall have priority over and supersede the obligations hereunder; provided,
that, upon satisfaction of such conflicting rights and/or obligations under the
Senior Loan Agreement and the intercreditor agreement relating thereto, the
holders of Senior Subordinated Note Obligations may promptly exercise their
rights, and the Permitted Holders shall promptly satisfy their obligations under
this Article XIX.

         Section 19.9  Rights of Holders of Senior Subordinated Notes to Amend
Senior Subordinated Loan Agreement and Discontinue Senior Subordinated Note
Obligations. The holders of Senior Subordinated Note Obligations may, in their
sole discretion, and without notice to the Permitted Holders, modify, amend,
waive or release any of the terms of the Senior Subordinated Loan Agreement, or
any other document or agreement at any time executed by LBI Media or any of the
Senior Subordinated Notes Guarantors or any other person in connection with the
Senior Subordinated Note Obligations and may exercise or refrain from exercising
any powers, remedies or rights which any such holder may have thereunder, and
such modification, amendment, waiver, release, exercise or failure to exercise
shall not affect any of such holders' rights under this Article XIX. Each
Permitted Holder hereby agrees that the holders of Senior Subordinated Note
Obligations may from time to time in their sole discretion amend the Senior
Subordinated Loan Agreement and any other instrument or agreement evidencing the
Senior Subordinated Note Obligations, grant extensions of time of payment or
performance and make compromises and settlements with LBI Media and the Senior
Subordinated Notes Guarantors and other creditors of LBI Media and the Senior
Subordinated Notes Guarantors without affecting the agreements of the Permitted
Holders and the Company hereunder. If at any time hereafter, the holders of
Senior Subordinated Note Obligations shall, in their sole discretion, determine
to discontinue the extension of credit to LBI Media or demand payment of the
Senior Subordinated Note Obligations, it may do so without notice to the
Permitted Holders. The failure on the part of the holders of Senior Subordinated
Note Obligations to insist on the strict performance of any term, condition or
other provision of this Article XIX or any term, condition or other provision
contained in the Senior Subordinated Loan Agreement or any other document or
instrument evidencing the Senior Subordinated Note Obligations, or to exercise
any right or remedy hereunder or thereunder, shall not affect or alter this
Article XIX, the Senior Subordinated Loan Agreement or any other such document
or instrument, and each and every term, condition and other provision of this
Article XIX, the Senior Subordinated Notes, and the Senior Subordinated Loan
Agreement shall, in such event, continue in full force and effect and shall be
operative with respect to any other then existing or subsequent default or event
of default in connection therewith.

         Section 19.10 Third Party Beneficiaries. The holders of Senior
Subordinated Note Obligations and their respective successors and assigns and
the Senior Subordinated Notes Trustee are third party beneficiaries of this
Article XIX.

         Section 19.11 No Transfer. A Permitted Holder may sell or transfer any
of the Subordinated Indebtedness, including, without limitation, the Notes and
the Warrants, to an Eligible Fund (as hereinafter defined) of such Permitted
Holder, provided that no such sale or other transfer of any Subordinated
Indebtedness shall be effective unless and until (i) the proposed transfer is in
accordance with Article XI, (ii) the proposed transferee shall agree in writing
pursuant to an agreement in form and substance acceptable to the Senior
Subordinated Notes Trustee to become a party hereto, and (iii) such sale or
other transfer is effected in

                                       12

<PAGE>

accordance with the Subordinated Agreements. As used herein, "Eligible Fund"
means, with respect to any Permitted Holder that is a fund that invests in
commercial loans or subordinated indebtedness, any other fund that invests in
commercial loans or subordinated indebtedness and is managed by the same
investment manager as such Permitted Holder.

         Section 19.12 Amendment of Article XIX. No amendment shall be made to
this Article XIX which would materially adversely affect the interests of the
holders of Senior Subordinated Note Obligations, without the prior written
consent of the Senior Subordinated Notes Trustee."

         1.7 Modification of Schedules

         A. Schedule 3.4(b) to the Purchase Agreement is hereby amended by
deleting the reference to "April 1, 1999" with respect to the Ortiz Employment
Agreement contained therein and substituting "September 1, 1999" therefor.

         B. Schedule 3.7 to the Purchase Agreement is hereby amended by deleting
the existing schedule in its entirety and substituting the Schedule 3.7 attached
to this Amendment therefor.

         C. Schedule 7.6 to the Purchase Agreement is hereby amended by (i)
adding at the end of each of items 4 and 5 thereof the following: "All amounts
owing thereunder may be paid in full on or about July 9, 2002," and (ii) adding
at the end of such Schedule 7.6 the following:

         "7. Loans by Company or its Subsidiaries (on such terms as determined
         by the sole and absolute discretion of Company or its Subsidiaries) to
         Jose Liberman and/or Lenard Liberman (and their respective Family
         Members) in an aggregate amount not exceeding $5,000,000; provided that
         no cancellation, foregiveness or transfer of any such loans shall
         increase the aggregate amount of loans otherwise permitted hereunder.

         8. The making of any loans described in Section 7.5(ii) (the terms of
         which shall be determined in the sole discretion of the Company) and
         cancellation, foregiveness or transfer of such loan."

         1.8 Substitution of Exhibit

         The Purchase Agreement is hereby amended by adding thereto a new
Exhibit A in the form of Annex A to this Amendment.

         1.9 Amendment of Recitals

         The first paragraph of the Purchase Agreement is hereby amended by
deleting the parenthetical "(the "Agreement")" contained therein.

                                       13

<PAGE>

Section 2.   AMENDMENTS TO THE WARRANT AGREEMENT

         2.1 Amendment to Section 7: Interpretation of this Agreement

         A.  The definition of "Consolidated EBITDA" in Section 7.1 of the
Warrant Agreement is hereby amended by deleting the reference therein to "Net
Cash Proceeds" and substituting "Net Cash Payments" therefor.

         B.  The definition of "Corporate Overhead Expense" in Section 7.1 of
the Warrant Agreement is hereby amended by adding at the end thereof the
following: "(it being understood that loans by Company or any of its
Subsidiaries to Lenard or Jose Liberman shall not constitute compensation to
Lenard or Jose Liberman)."

         C.  The definition of "Expiration Date" in Section 7.1 of the Warrant
Agreement is hereby amended by deleting the reference to "March 20, 2011"
contained therein and substituting "January 9, 2015" therefor.

         2.2 Substitution of Exhibit

         The Warrant Agreement is hereby amended by adding thereto a new Exhibit
A in the form of Annex B to this Amendment.

Section 3.   AMENDMENTS TO THE SENIOR LENDERS INTERCREDITOR AGREEMENT

         3.1 Amendment to Section 1: Certain Definitions

         Section 1.1 of the Senior Lenders Intercreditor Agreement is hereby
amended by deleting the phrase "as amended, restated" appearing in the seventh
line thereof and substituting therefor the phrase "as amended and restated by
the Amended and Restated Credit Agreement dated as of July 9, 2002 among LBI
Media, Inc. (formerly known as LBI Holdings II, Inc.), as the borrower, the
guarantors party thereto, and Fleet National Bank, as administrative agent,
General Electric Capital Corporation and U.S. Bank, N.A., as co-syndication
agents, and CIT Lending Services Corporation and SunTrust Bank, as
co-documentation agents, and the other lenders party thereto from time to time,
as further amended, amended and restated,".

         3.2 Amendments to Section 3: Terms of Subordination

         Section 3.6(b) of the Senior Lenders Intercreditor Agreement is hereby
amended by (i) deleting each of the two references to "September 20, 2009"
contained therein and substituting therefor in each instance the phrase "July 9,
2013", and (ii) deleting each of the two references to "(as in effect on the
date hereof)" appearing in clauses (i) and (ii) thereof and substituting
therefor in each instance the phrase "(as in effect on July 9, 2002)".

                                       14

<PAGE>

         3.3 Amendment to Section 8: Limit on Right of Action

         Section 8(a) of the Senior Lenders Intercreditor Agreement is hereby
amended by adding at the end thereof the following:

         "Notwithstanding the foregoing, in the event of a material breach by
         the Company of (i) any covenant set forth in the following sections of
         the Subordinated Investment Agreement, namely Section 2.4(h), the
         second and third sentences of Section 7.1, Section 7.5, Section 7.6,
         Section 7.7, Sections 8.1 through 8.8 or (ii) any material covenant
         contained in the Warrant Agreement or Voting and Co-Sale Agreement, the
         Subordinated Creditors may seek injunctive relief and state a claim for
         damages; provided, however, that the Subordinated Creditors shall not
         be entitled to collect or receive any monetary damages in respect of
         such claim from the Company or any of its subsidiaries in connection
         with such material breach except in accordance with the first sentence
         of this Section 8(a). Prior to seeking any such injunctive relief or
         stating any such claims, the Subordinated Creditors shall first deliver
         notice thereof to the Administrative Agent at least thirty (30) days,
         or shorter period if required by reason of a limitation period, filing
         requirement or like matter, prior to taking any such action."

Section 4.   AMENDMENT OF THE SENIOR SUBORDINATED LENDERS INTERCREDITOR
AGREEMENT

         A.  The parties acknowledge and understand that upon the payment of
amounts set forth in Section 1.1B of that certain Agreement Relating to Note
Purchase Agreement dated as of June 28, 2002 by and among LBI Intermediate
Holdings, Inc., the several purchasers listed on the signature pages thereof,
and Oaktree, which payment shall be made on or prior to the Amendment Effective
Date, the outstanding amounts owed by the Company under the existing Senior
Subordinated Loan Agreement with Oaktree and related notes shall be repaid in
full.

         B.  Section 1.1 of the existing Senior Subordinated Lenders
Intercreditor Agreement among the Company, the Purchasers, and Oaktree is hereby
amended by deleting the first sentence contained therein and substituting the
following therefor:

         "Reference is made herein to the Notes Purchase Agreement of even date
         herewith, by and among LBI Intermediate Holdings, Inc. (the
         "Borrower"), the Purchasers party thereto, and the Agent (as amended
         and supplemented from time to time, the "Notes Purchase Agreement"; it
         being understood by the parties hereto that the term Note Purchase
         Agreement shall not include any agreement entered into to refund,
         refinance, or otherwise replace amounts owed under the Notes Purchase
         Agreement and in no event shall include the Indenture, dated as of July
         9, 2002, among LBI Media, Inc., as the issuer, the guarantors party
         thereto and U.S. Bank, N.A., as the trustee or any documents related
         thereto)."

Section 5.   AMENDMENT OF THE INVESTOR SUBORDINATION AGREEMENT

         Section 1 of the Investor Subordination Agreement is hereby amended by
inserting the phrase "and restated by the Amended and Restated Credit Agreement
dated as of July 9, 2002 among LBI Media, Inc. (formerly known as LBI Holdings
II, Inc.), as the borrower, the

                                       15

<PAGE>

guarantors party thereto, and Fleet National Bank, as administrative agent,
General Electric Capital Corporation and U.S. Bank, N.A., as co-syndication
agents, and CIT Lending Services Corporation and SunTrust Bank, as
co-documentation agents, and the other lenders party thereto from time to time,
and as further amended" into the second parenthetical contained in the first
sentence and immediately following the phrase "as amended."

Section 6.   EXCHANGE OF NOTES AND WARRANTS

         On or after the Amendment Effective Date and upon surrender of each
existing Note and existing Warrant held by each Purchaser, the Company agrees to
execute and deliver to such Purchaser a new Note in the form of Annex A to this
Amendment and a new Warrant in the form of Annex B to this Amendment, in each
case with appropriate insertions reflecting the same amounts as the existing
Note and Warrant. In such exchange, the parties agree that no commission or
other remuneration will be paid or given directly or indirectly for soliciting
such exchange.

         On and after the Amendment Effective Date, any existing Notes and
existing Warrants outstanding and not exchanged pursuant to this Section 6 shall
be deemed to have such terms and conditions as set forth in the new form of Note
set forth in Annex A and the new form of Warrant set forth in Annex B.

Section 7.   CONDITIONS TO EFFECTIVENESS

         Sections 1, 2, 3, 4, 5, 6, and 9F of this Amendment shall become
effective only upon the satisfaction of all of the following conditions
precedent (the date of satisfaction of such conditions being referred to herein
as the "Amendment Effective Date"):

         A. On or before the Amendment Effective Date, each of Company, Fleet,
Oaktree, and Majority Purchasers shall have delivered to the Company and to Alta
Communications VIII, L.P., as agent for each of the Purchasers, executed copies
of this Amendment.

         B. LBI Media shall have simultaneously issued the Senior Subordinated
Notes under the Senior Subordinated Loan Agreement (as defined in Section 1.1C
hereof) and the new Senior Loan Agreement dated as of July 9, 2002 shall have
become effective.

         C. The Purchasers shall have received an opinion of O'Melveny & Myers
LLP, counsel to the Company, substantially in the form attached as Annex C.

         D. The Company shall have received an opinion of Edwards & Angell, LLP,
counsel to Alta Communications VIII, L.P. and certain affiliates thereof,
substantially in the form attached as Annex D.

         E. The new Senior Loan Agreement and related documents and the new
Senior Subordinated Loan Agreement and related documents shall be in form and
substance reasonably satisfactory to Majority Purchasers.

                                       16

<PAGE>

Section 8.   REPRESENTATIONS AND WARRANTIES

         A.  By All Parties. In order to induce each of the other parties hereto
to enter into this Amendment, each party hereto represents and warrants to each
of the other parties hereto that the following statements are true, correct and
complete:

              (i)   Corporate Power and Authority. Such party has all requisite
         corporate or partnership power and authority to enter into this
         Amendment and to carry out the transactions contemplated by, and
         perform its obligations under, this Amendment and the Amended
         Agreements.

              (ii)  Authorization of Agreements. The execution and delivery of
         this Amendment and the performance of this Amendment and the Amended
         Agreements have been duly authorized by all necessary corporate or
         partnership action on the part of such party.

              (iii) No Conflict. The execution and delivery by such party of
         this Amendment and the performance by such party of this Amendment and
         the Amended Agreements do not and will not (i) violate any provision
         of any law or any governmental rule or regulation applicable to such
         party, the articles and bylaws or the partnership agreement or any
         other organizational documents of such party, or any order, judgment
         or decree of any court or other agency of the government of the United
         States binding on such party, (ii) conflict with, result in a breach
         of or constitute (with due notice or lapse of time or both) a default
         under any material contractual obligation of such party, (iii) result
         in or require the creation or imposition of any Lien upon any of the
         properties or assets of such party, or (iv) require any approval of
         stockholders or any approval or consent of any Person under any
         contractual obligation of such party, except where applicable
         approvals or consents have been obtained.

              (iv)  Governmental Consents. The execution and delivery by such
          party of this Amendment and the performance by such party of this
          Amendment and the Amended Agreements do not and will not require any
          registration with, consent or approval of, or notice to, or other
          action to, with or by, any U.S. federal, state, provincial or other
          governmental authority or regulatory body.

              (v)   Binding Obligation. This Amendment has been duly executed
         and delivered by such party and this Amendment and the Amended
         Agreements are the legally valid and binding obligations of such party
         enforceable against such party in accordance with their respective
         terms, except as may be limited by bankruptcy, insolvency,
         reorganization, moratorium or similar laws relating to or limiting
         creditors' rights generally or by equitable principles relating to
         enforceability.

         B. By the Company. In order to induce the Purchasers to enter into this
Amendment, the Company represents and warrants to each of the Purchasers that
the following statements are true, correct and complete:

              (i)   The representations and warranties of the Company and its
         Subsidiaries made in Sections 3.3, 3.4, and 3.7 of the Purchase
         Agreement as of the Amendment

                                       17

<PAGE>

         Effectiveness Date (which representations and warranties are subject to
         all of the qualifications, limitations and restrictions contained in
         the Purchase Agreement and any revised schedule attached to this
         Amendment); and

              (ii)  The representations and warranties of the Company and its
         Subsidiaries made in the amended and restated Senior Loan Agreement as
         of the Amendment Effectiveness Date (which representations and
         warranties are subject to all of the qualifications, limitations and
         restrictions contained in the amended and restated Senior Loan
         Agreement);

are hereby incorporated herein by reference and each such representation and
warranty is restated and re-made by the Company to the Purchasers as of the date
hereof and will be deemed to be representations and warranties made by the
Company to the Purchasers under this Amendment and relied upon by the Purchasers
in entering into this Amendment.

         C. By the Purchasers. In order to induce each of the other parties
hereto to enter into this Amendment, each Purchaser hereto represents and
warrants to each of the other parties hereto that the following statements are
true, correct and complete: (i) the execution by the Majority Purchasers of this
Amendment constitutes the requisite approval of the Purchasers necessary to
amend the Amended Agreements as contemplated by this Amendment, including but
not limited to approval as "Majority Purchasers" under the Purchase Agreement
and the "Required Holders" under the Warrant Agreement; (ii) with such approval,
each Purchaser is bound by this Amendment, whether or not such Purchaser is a
party hereto; and (iii) collectively, Alta Communications VIII, L.P., Alta-Comm
VIII S By S, LLC, Alta Communications VIII-B, L.P., and Alta VIII Associates,
LLC constitute "Majority Purchasers" under the Purchase Agreement and "Required
Holders" under the Warrant Agreement.

Section 9.    MISCELLANEOUS

         A. Headings. Section and subsection headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose or be given any substantive effect.

         B. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES.

         C. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

         D. Expenses. The Company acknowledges that all costs, fees and expenses
as described in Section 12.1 of the Purchase Agreement incurred by the
Purchasers and one counsel for the

                                       18

<PAGE>

Purchasers with respect to this Amendment and the documents and transactions
contemplated hereby shall be for the account of the Company. The Company shall
concurrently with the execution and delivery of this Amendment pay all accrued
and unpaid fees of Edwards & Angell, LLP, counsel to the Purchasers, for which
invoices shall have been received by Company on or prior to the Amendment
Effective Date.

         E. Confirmation of Tax Allocation and Budgeted Plan. The Company hereby
ratifies and confirms that this Amendment shall not amend or otherwise alter the
allocation of issue price of $29,500,000 to the Notes and $500,000 to the
Warrants as set forth in the original Purchase Agreement. The Company further
ratifies and confirms its obligation under Section 4.1(d) of the Warrant
Agreement to provide to Purchasers a breakdown of the Budgeted Plan (as defined
in the Warrant Agreement) on a quarter-annual basis, reasonably acceptable to
Required Holders (as defined in the Warrant Agreement).

         F. Consent to Amended Agreements. Fleet hereby consents to this
Amendment and the amendments and modifications to the Amended Agreements as
effected by this Amendment and the transactions described in Section 6 hereof.

         G. Consent to Registration Rights. With reference to Section 7.6(B) of
the Purchase Agreement, the Purchasers hereby consent to the grant of
registration rights to the holders of the Senior Subordinated Note Obligations
as contemplated by the Senior Subordinated Loan Agreement (as defined in Section
1.1B).

         H. Ratification and Confirmation. Except as specifically amended by
this Amendment and the Amendment and Confirmation of Subordination Agreements
dated as of the date hereof by and among the Purchasers, the Company, and Fleet,
(i) the Purchase Agreement, (ii) the Warrant Agreement, (iii) the Senior Lenders
Intercreditor Agreement, (iv) the existing Senior Subordinated Lenders
Intercreditor Agreement with Oaktree, and (v) the Investor Subordination
Agreement shall remain in full force and effect and are hereby ratified and
confirmed.

     [Remainder of page intentionally left blank; signature pages to follow]

                                       19

<PAGE>

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

                                    COMPANY:

                                    LBI HOLDINGS I, INC.

                                    By: /s/ Lenard Liberman
                                       -----------------------------------------
                                    Name: Lenard Liberman
                                         ---------------------------------------
                                    Title: Executive Vice President
                                          --------------------------------------

                                    PURCHASERS:

                                    ALTA COMMUNICATIONS VIII, L.P.

                                    By:  Alta Communications VIII Managers, LLC,
                                             its General Partner

                                    By: /s/ Eileen McCarthy
                                       -----------------------------------------
                                    Name: Eileen McCarthy
                                         ---------------------------------------
                                    Title: Member
                                          --------------------------------------

                                    ALTA-COMM VIII S BY S, LLC

                                    By: /s/ Eileen McCarthy
                                       -----------------------------------------
                                    Name: Eileen McCarthy
                                         ---------------------------------------
                                    Title: Member
                                          --------------------------------------

                                    ALTA COMMUNICATIONS VIII-B, L.P.

                                    By:  Alta Communications VIII Managers, LLC,
                                             its General Partner

                                    By: /s/ Eileen McCarthy
                                       -----------------------------------------
                                    Name: Eileen McCarthy
                                         ---------------------------------------
                                    Title: Member
                                          --------------------------------------

                                       S-1

<PAGE>

                             ALTA VIII ASSOCIATES, LLC

                             By:  Alta Communications, Inc.

                             By: /s/ Eileen McCarthy
                                ----------------------------------------------
                             Name: Eileen McCarthy
                                  --------------------------------------------
                             Title: Member
                                   -------------------------------------------

                             CALIFORNIA STATE TEACHERS'
                             RETIREMENT SYSTEM

                             By: /s/ Christopher J. Ailman
                                ----------------------------------------------
                             Name: Christopher J. Ailman
                                  --------------------------------------------
                             Title: Chief Investment Officer
                                   -------------------------------------------

                             BANCBOSTON INVESTMENTS INC.

                             By: /s/ Lars A. Swanson
                                ----------------------------------------------
                             Name: Lars A. Swanson
                                  --------------------------------------------
                             Title: Director
                                   -------------------------------------------

                             UNIONBANCAL EQUITIES, INC.

                             By: /s/ J. Kevin Sampson      /s/ David Bonrouhi
                                ----------------------------------------------
                             Name: J. Kevin Sampson          David Bonrouhi
                                  --------------------------------------------
                             Title: Vice President           Vice President
                                   -------------------------------------------

                                      S-2

<PAGE>

                          For purposes of Sections 4, 7, 8A and 9 only:

                          OAKTREE CAPITAL MANAGEMENT, LLC,
                          individually and as agent for the Holders under that
                          certain Note Purchase Agreement

                          By: /s/ Kenneth Liang
                             ---------------------------------------------------
                          Name: Kenneth Liang
                               -------------------------------------------------
                          Title: Managing Director
                                ------------------------------------------------

                          By: /s/ Richard Ting
                             ---------------------------------------------------
                          Name: Richard Ting
                               -------------------------------------------------
                          Title: Vice President, Legal
                                ------------------------------------------------

                          For purposes of Sections 3, 5, 7, 8A and 9 only:

                          FLEET NATIONAL BANK, individually and as agent for the
                          Senior Lenders

                          By: /s/ Garnet Komjathy
                             ---------------------------------------------------
                          Name:  Garnet Komjathy
                               -------------------------------------------------
                          Title: Director
                                ------------------------------------------------

                                      S-3

<PAGE>

                                 SCHEDULE 3.4(a)
       (to the Securities Purchase Agreement, as revised on July 9, 2002)

                                 CAPITALIZATION

Jose Liberman - 100 shares of Common Stock.

Lenard Liberman - 100 shares of Common Stock.

<PAGE>

                                 SCHEDULE 3.4(b)
       (to the Securities Purchase Agreement, as revised on July 9, 2002)

                                  EQUITY RIGHTS

1.       Pursuant to a Stock Purchase Agreement dated as of January 6, 1998,
         between Jose Liberman, Esther Liberman, Lenard D. Liberman
         (collectively, the "Shareholders") and LBI Holdings I, Inc. (the
         "Company"), upon the death of any Shareholder, the surviving
         Shareholders and the Company will have an option to purchase the
         deceased Shareholder's stock. The Shareholders are subject to certain
         restrictions on pledging, transferring, hypothecating, dividing,
         assigning or otherwise alienating their stock in the Company.

2.       Pursuant to that certain Employment Agreement dated September 1, 1999,
         by and between LBI Holdings I, Inc. and Xavier Ortiz, Mr. Ortiz is
         entitled under an incentive plan to receive payment in either cash or
         Common Stock of LBI Holdings I, Inc. if, among other things, stock of
         LBI Holdings I, Inc. is traded on the New York Stock Exchange or the
         National Association of Securities Dealers Automated Quotation System.

3.       Pursuant to that certain Employment Agreement dated November 15, 1998,
         by and between LBI Holdings I, Inc. and Andrew F. Mars, Mr. Mars is
         entitled under an incentive plan to receive payment in either cash or
         Common Stock of LBI Holdings I, Inc. if, among other things, stock of
         LBI Holdings I, Inc. is traded on the New York Stock Exchange or the
         National Association of Securities Dealers Automated Quotation System.

4.       Pursuant to that certain Employment Agreement dated December 1, 1999,
         by and between Liberman Broadcasting Inc. and Eduardo Leon, Mr. Leon is
         entitled under an incentive plan to receive payment in either cash or
         Common Stock of Liberman Broadcasting Inc. if, among other things,
         stock of Liberman Broadcasting Inc. is capable of being immediately
         traded on the New York Stock Exchange or the National Association of
         Securities Dealers Automated Quotation System.

<PAGE>

                                  SCHEDULE 3.7
       (to the Securities Purchase Agreement, as revised on July 9, 2002)

                             AFFILIATE TRANSACTIONS

1.       Regarding the Empire Burbank Studios located at 1845 Empire Blvd.,
         Burbank, California, the following leases are in effect:

         (a)      Lease dated as of July 15, 1999 by and between Empire Burbank
                  Studios, Inc., a California corporation ("Empire"), as
                  landlord, and Liberman Broadcasting, Inc., a California
                  corporation ("Liberman Broadcasting"), as tenant

         (b)      Sublease Agreement dated as of July 15, 1999 by and between
                  Liberman Broadcasting, as sublandlord and Empire, as subtenant

2.       Spanish Media Rep Team is a wholly owned subsidiary of Jose Liberman
         and Lenard Liberman and it receives a 15% commission from Liberman
         Broadcasting Inc. for any advertising time is sells. The agreement is
         not memorialized in writing.

3.       LBI Holdings I, Inc. will make capital contributions to LBI
         Intermediate Holdings, Inc., and LBI Intermediate Holdings, Inc. will
         make certain dividend payments to LBI Holdings I, Inc. on the Effective
         Date.

4.       Third Amended and Restated Demand Promissory Note dated March 20, 2001,
         by Liberman Broadcasting, Inc. in favor of Jose Liberman with
         accumulated principal and interest equal to $1,667,193 as of March 31,
         2002. The remaining balance of this promissory note will be paid on or
         about July 9, 2002.

5.       Third Amended and Restated Demand Promissory Note dated March 20, 2001,
         by Liberman Broadcasting, Inc. in favor of Lenard Liberman with
         accumulated principal and interest equal to $194,414 as of March 31,
         2002. The remaining balance of this promissory note will be paid on or
         about July 9, 2002.

6.       As of March 31, 2002, LBI Media, Inc. (formerly known as LBI Holdings
         II, Inc.) had outstanding loans of $243,095 and $146,950 to Jose and
         Lenard Liberman, respectively, which loans were made in December 2001.

7.       On or about July 9, 2002, LBI Media, Inc. made a loan of $1,916,563 to
         Lenard Liberman. The loan will mature in seven years and bear interest
         at the applicable federal rate.

8.       Those transactions and payments described in Section 7.6(a) through (h)
         of the Senior Loan Agreement or otherwise permitted by the Senior Loan
         Agreement.

9.       Item #1 of Schedule 3.4(b) is incorporated herein by reference.

<PAGE>

                              ANNEX A TO AMENDMENT

                                    EXHIBIT A

         THIS INSTRUMENT IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR
AGREEMENT DATED AS OF MARCH 20, 2001 BY AND AMONG LBI HOLDINGS I, INC., A
CALIFORNIA CORPORATION, FLEET NATIONAL BANK, INDIVIDUALLY AND AS ADMINISTRATIVE
AGENT FOR CERTAIN LENDERS, AND CERTAIN OTHER PARTIES, AS AMENDED FROM TIME TO
TIME. BY ITS ACCEPTANCE OF THIS INSTRUMENT, THE HOLDER HEREOF AGREES TO BE BOUND
BY THE PROVISIONS OF SUCH SUBORDINATION AND INTERCREDITOR AGREEMENT TO THE SAME
EXTENT THAT THE SUBORDINATED CREDITORS (AS DEFINED THEREIN) ARE BOUND.

         THIS INSTRUMENT IS SUBJECT TO THE SUBORDINATION AND INTERCREDITOR
PROVISIONS CONTAINED IN ARTICLE XIX OF THE SECURITIES PURCHASE AGREEMENT
DESCRIBED BELOW. BY ITS ACCEPTANCE OF THIS INSTRUMENT, THE HOLDER HEREOF AGREES
TO BE BOUND BY SUCH SUBORDINATION AND INTERCREDITOR PROVISIONS TO THE SAME
EXTENT THAT THE PERMITTED HOLDERS (AS DEFINED THEREIN) ARE BOUND.

         THE SECURITIES REPRESENTED BY THIS NOTE HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR
APPLICABLE STATE LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS THE REGISTRATION PROVISIONS OF SAID ACT AND LAWS HAVE BEEN
COMPLIED WITH OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. FURTHERMORE,
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF TAX COUNSEL REASONABLY ACCEPTABLE TO THE
COMPANY IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY TO THE EFFECT
THAT SUCH SALE, TRANSFER, PLEDGE OR HYPOTHECATION WILL NOT TERMINATE THE
COMPANY'S CLASSIFICATION AS AN S CORPORATION.

                       JUNIOR SUBORDINATED PROMISSORY NOTE

[$___________]                                       Dated as of March 20, 2001

         FOR VALUE RECEIVED, the undersigned LBI HOLDINGS I, INC., a California
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of [________________] (hereinafter with any subsequent holder referred to
as "Lender"), having its principal place of business at [________________], on
the Maturity Date (as hereinafter defined), the principal amount of [_________
Dollars ($_________)] together with interest thereon, at the rates provided for
in the Securities Purchase Agreement (hereafter described).

         This Note is one of the "Notes" referred to in, and is entitled to all
the benefits of that certain Securities Purchase Agreement dated as of the date
hereof, by and among Borrower,

                                      A-1

<PAGE>

Lender and the other parties signatories thereto (as may be amended from time to
time, the "Securities Purchase Agreement"). All capitalized terms used herein
and not otherwise defined shall have the meanings given to such terms in the
Securities Purchase Agreement.

         Interest on the principal amount outstanding hereunder shall accrue and
shall be paid as provided in the Securities Purchase Agreement.

         The outstanding principal amount of this Note, together with all
accrued interest thereon, shall be due and payable, without setoff, deduction or
counterclaim, on July 9, 2013, or on such earlier date as provided in the
Securities Purchase Agreement (the "Maturity Date").

         Borrower may prepay the outstanding principal amount and accrued
interest hereunder, in full or in part, upon the terms and conditions set forth
in the Securities Purchase Agreement.

         Payments of principal and interest due hereunder shall be made by
Borrower in lawful money of the United States of America and immediately
available funds to Lender at its address set forth in the first paragraph of
this Note, or at such other place as Lender may designate to the Borrower in
writing, in accordance with the Securities Purchase Agreement. All payments
hereunder, unless otherwise determined by Lender, shall be applied first to
interest, fees and expenses then due and the balance, if any, to principal.

         In no event shall the undersigned be required to pay any interest or
other fees or charges in excess of the maximum permitted by applicable law. If,
for any circumstances whatsoever, fulfillment of any provisions hereof or of the
Securities Purchase Agreement, at the time performance of such provision shall
be due, shall involve exceeding such amount, then the obligation to be fulfilled
shall automatically be reduced to the limit of such validity, and if from any
circumstance Lender should ever receive as interest an amount which would exceed
such maximum amount, such amount which would be excessive interest shall be
applied to the reduction of the principal balance evidenced hereby and not to
the payment of interest. As used herein, the term "applicable law" shall mean
the law in effect as of the date hereof; provided, however, that in the event
there is a change in the law which results in a higher permissible rate of
interest, then this Note shall be governed by such new law as of its effective
date. This provision shall control every other provision of all agreements
between Borrower and Lender.

         Borrower agrees to pay all costs and expenses (including reasonable
attorneys' fees) incurred by Lender in the collection of this Note and the
enforcement of any agreement or instrument securing this Note.

         Any and all sums at any time due from Lender to Borrower shall at all
times constitute security for this Note and any other obligations of Borrower to
Lender and may be applied or set off by Lender against such obligations whether
or not other collateral is available to Lender.

         Borrower, for itself and its legal representatives, successors and
assigns, hereby expressly waives presentment, dishonor, protest and demand,
diligence, notice of protest of demand and of dishonor, and any other notice
otherwise required to be given under the law in connection with the delivery,
acceptance, performance, default, enforcement or collection of this Note, and
expressly agrees that this Note, or any payment hereunder, may be extended or
subordinated (by forbearance or otherwise) as set forth in the Securities
Purchase Agreement.

                                      A-2

<PAGE>

         No delay or omission on the part of Lender in exercising any right
hereunder shall operate as a waiver of such right or of any other right of
Lender nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. No
consent or waiver by Lender with respect to any action or failure to act which,
without such consent or waiver, would constitute a breach of any provision of
this Note shall be valid and binding unless in writing and signed by Borrower
and Lender.

         Transfer of this Note is registrable on the Note register of Borrower
upon presentation at the principal office of Borrower accompanies by a written
instrument of transfer in form reasonably satisfactory to Borrower duly executed
by, or on behalf of, the holder hereof; provided any such transferee is also a
Permitted Holder. This Note may also be exchanged at such office for one or more
Notes in any authorized denominations, as requested by the holder, of a like
aggregate unpaid principal amount. Any transfer of this Note shall be subject to
the terms of the Securities Purchase Agreement and any such transferee's
agreement to be bound to the terms of the Securities Purchase Agreement, the
Related Agreements and the Intercreditor Agreements, and by acceptance of this
Note the holder agrees to be bound by the terms of the Securities Purchase
Agreement, the Related Agreements and the Intercreditor Agreements.

         Prior to due presentment for registration of transfer, Borrower and any
agent of Borrower may treat the person in whose name this Note is registered as
the owner hereof for the purpose of receiving payment of principal and interest
as herein provided and for all other purposes.

         This Note shall be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts without giving effect to any choice or
conflict of law provision or rule that would cause the application of the
domestic substantive laws of any other jurisdiction.

         This Note is subject to certain subordination provisions as set forth
in the Intercreditor Agreements.

         BORROWER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION PERTAINING TO THE
ENFORCEMENT OF THIS NOTE OR ANY AGREEMENT OR INSTRUMENT SECURING THIS NOTE.

         This Note is executed as of the date first set forth above as a sealed
instrument, shall be binding upon the undersigned and its successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

                                          LBI HOLDINGS I, INC.

Witness:

                                          By:___________________________________
______________________________            Name:_________________________________
                                          Title:________________________________

                                       A-3

<PAGE>

                              ANNEX B TO AMENDMENT

                                    EXHIBIT A

                          [FORM OF WARRANT CERTIFICATE]

         THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES
ISSUABLE UPON EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND THEY MAY NOT BE SOLD OR
OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER SAID ACT AND ANY APPLICABLE
STATE SECURITIES LAWS.

         THE SALE, TRANSFER, PLEDGE, OR HYPOTHECATION (COLLECTIVELY, THE
"TRANSFER") OR EXERCISE OF THIS WARRANT AND THE TRANSFER OF THE SECURITIES
ISSUABLE UPON EXERCISE ARE SUBJECT TO THE COMMUNICATIONS ACT OF 1934, AS
AMENDED, AND THE RULES AND REGULATIONS OF THE FEDERAL COMMUNICATIONS COMMISSION.

         FURTHERMORE, THE WARRANTS REPRESENTED BY THIS CERTIFICATE MAY NOT BE
TRANSFERRED OR EXERCISED AND THE SECURITIES ISSUABLE UPON EXERCISE MAY NOT BE
TRANSFERRED, IN EACH CASE, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF TAX
COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY IN FORM AND SUBSTANCE REASONABLY
ACCEPTABLE TO THE COMPANY TO THE EFFECT THAT SUCH TRANSFER OR EXERCISE, AS
APPLICABLE, WILL NOT TERMINATE THE COMPANY'S CLASSIFICATION AS AN "S"
CORPORATION EXCEPT TO THE EXTENT SUCH EXERCISE IS OTHERWISE PERMITTED UNDER THE
PURCHASE AGREEMENT DEFINED IN THE BELOW-REFERENCED WARRANT AGREEMENT.

         THIS INSTRUMENT IS SUBJECT TO A SUBORDINATION AND INTERCREDITOR
AGREEMENT DATED AS OF MARCH 20, 2001 BY AND AMONG LBI HOLDINGS I, INC., A
CALIFORNIA CORPORATION, THE PURCHASERS PARTY TO THE PURCHASE AGREEMENT, AND
FLEET NATIONAL BANK, INDIVIDUALLY AND AS ADMINISTRATIVE AGENT (THE
"ADMINISTRATIVE AGENT") FOR CERTAIN LENDERS AND CERTAIN OTHER PARTIES, AS
AMENDED FROM TIME TO TIME. BY ITS ACCEPTANCE OF THIS INSTRUMENT, THE HOLDER
HEREOF AGREES TO BE BOUND BY THE PROVISIONS OF SUCH SUBORDINATION AND
INTERCREDITOR AGREEMENT TO THE SAME EXTENT THAT THE SUBORDINATED CREDITORS (AS
DEFINED THEREIN) ARE BOUND.

         THIS INSTRUMENT IS SUBJECT TO THE SUBORDINATION AND INTERCREDITOR
PROVISIONS CONTAINED IN ARTICLE XIX OF THE PURCHASE AGREEMENT (AS DEFINED IN THE
WARRANT AGREEMENT

                                      B-1

<PAGE>

DESCRIBED BELOW). BY ITS ACCEPTANCE OF THIS INSTRUMENT, THE HOLDER HEREOF AGREES
TO BE BOUND BY SUCH SUBORDINATION AND INTERCREDITOR PROVISIONS TO THE SAME
EXTENT THAT THE PERMITTED HOLDERS (AS DEFINED IN THE PURCHASE AGREEMENT) ARE
BOUND.

                               WARRANT CERTIFICATE

                              LBI HOLDINGS I, INC.

         No. WR-___-2002                                        [_____] Warrants
         Dated as of March 20, 2001

         This Warrant Certificate certifies that ________, or registered
assigns, is the registered holder of ____________ (__________) Warrants to
purchase shares of Common Stock of LBI HOLDINGS I, INC. (the "Company"), a
California corporation. Each Warrant initially entitles the owner thereof to
purchase at any time on or before the Expiration Date one (1) fully paid and
nonassessable share of Common Stock of the Company, at a Purchase Price of one
cent ($0.01) upon (i) presentation and surrender of this Warrant Certificate
with a form of election to purchase duly executed and (ii) delivery to the
Company of the payment of the Purchase Price in the manner set forth in the
Warrant Agreement referred to below. The number of shares of Common Stock
purchasable pursuant to this Warrant Certificate and the Purchase Price therefor
are subject to adjustment as referred to below.

         The Warrants are issued pursuant to the Warrant Agreement, dated as of
March 20, 2001 (as it may from time to time be amended or supplemented, the
"Warrant Agreement"), between the Company and the purchasers named therein, and
are subject to all of the terms, provisions and conditions thereof, which
Warrant Agreement is hereby incorporated herein by reference and made a part
hereof and to which Warrant Agreement reference is hereby made for a full
description of the rights, obligations, duties and immunities of the Company and
the holders of the Warrant Certificates. Capitalized terms used, but not
defined, herein have the respective meanings ascribed to them in the Warrant
Agreement.

         As provided in the Warrant Agreement, the number of shares of Common
Stock purchasable pursuant to this Warrant Certificate and/or the Purchase Price
are, upon the happening of certain events, subject to adjustment. As further set
forth in, and subject to, the Warrant Agreement, the expiration date of this
Warrant Certificate is 5:00 p.m. Eastern Time on the earlier of (a) the later of
(i) January 9, 2015, or (ii) the date which is six (6) months from the date of
payment in full of all outstanding principal and interest on the Notes and (b)
the closing of the sale and issuance of shares of Common Stock of the Company in
an underwritten public offering pursuant to an effective registration statement
under the Securities Act of 1933, as amended, the gross proceeds of which exceed
$25,000,000; provided that if the holders of the Warrants have not had the right
to put the Warrants under Section 5.1 of the Warrant Agreement, the expiration
date of this Warrant Certificate shall extend until such time as the holders
have such right.

                                      B-2

<PAGE>

         This Warrant Certificate shall be exercisable, at the election of the
holder, either as an entirety or in part from time to time. If this Warrant
Certificate shall be exercised in part, the holder shall be entitled to receive,
upon surrender hereof, another Warrant Certificate or Warrant Certificates for
the number of Warrants not exercised. This Warrant Certificate, with or without
other Warrant Certificates, upon surrender in the manner set forth in the
Warrant Agreement, may be exchanged for another Warrant Certificate or Warrant
Certificates of like tenor evidencing Warrants entitling the holder to purchase
a like aggregate number of shares of Common Stock as the Warrants evidenced by
the Warrant Certificate or Warrant Certificates surrendered shall have entitled
such holder to purchase.

         Except as expressly set forth in the Warrant Agreement, no holder of
this Warrant Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of shares of Common Stock or of any other
Securities of the Company that may at any time be issued upon the exercise
hereof, nor shall anything contained in the Warrant Agreement or herein be
construed to confer upon the holder hereof, as such, any of the rights of a
holder of a share of Common Stock in the Company or any right to vote upon any
matter submitted to holders of shares of Common Stock at any meeting thereof, or
to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of Securities, change of
par value, consolidation, merger, conveyance, or otherwise) or, except as
provided in the Warrant Agreement, to receive notice of meetings, or to receive
dividends or subscription rights, or otherwise, until the Warrant or Warrants
evidenced by this Warrant Certificate shall have been exercised as provided in
the Warrant Agreement.

         THIS WARRANT CERTIFICATE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, AND THE RIGHTS OF THE COMPANY AND THE HOLDER HEREOF SHALL BE GOVERNED BY,
THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS (OTHER THAN ITS CONFLICTS OF LAW
PRINCIPLES). THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO
AGREEMENTS, COVENANTS AND RESTRICTIONS PROVIDED IN THE VOTING AND CO-SALE
AGREEMENT DATED MARCH 20, 2001, AND THE SECURITIES PURCHASE AGREEMENT DATED
MARCH 20, 2001, EACH AS AMENDED FROM TIME TO TIME, BY AND AMONG THE COMPANY AND
THE PERSONS NAMED THEREIN. A COPY OF SUCH AGREEMENTS MAY BE OBTAINED BY ANY
HOLDER OF THIS WARRANT UPON REQUEST WITHOUT CHARGE FROM THE SECRETARY OF THE
COMPANY AT THE PRINCIPAL OFFICE OF THE COMPANY.

         WITNESS the signature of a proper officer of the Company as of the date
first above written.

ATTEST:                                         LBI HOLDINGS I, INC.

______________________________                  By:_____________________________
Secretary                                            Name:
                                                     Title:

                                      B-3

<PAGE>

                              [FORM OF ASSIGNMENT]
   (To be executed by the registered holder if such holder desires to transfer
                            the Warrant Certificate)

         FOR VALUE RECEIVED, _______________________________ hereby sells,
assigns and transfers unto
 ______________________________________________________________________________
(Please print name, address and taxpayer identification number or social
security number of transferee)
the accompanying Warrant Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint:
___________________________________________ attorney, to transfer the
accompanying Warrant Certificate on the books of the Company, with full power of
substitution.

         Dated:  _________________, ______.

                                                        ________________________
                                                        Signature of Holder

                                     NOTICE

         The signature to the foregoing Assignment must correspond to the name
as written upon the face of the accompanying Warrant Certificate or any prior
assignment thereof in every particular, without alteration or enlargement or any
change whatsoever.

                                      B-4

<PAGE>

                         [FORM OF ELECTION TO PURCHASE]

                   (To be executed by the registered holder if
            such holder desires to exercise the Warrant Certificate)

         To: ___________:

         The undersigned hereby irrevocably elects to exercise _____ Warrants
represented by the accompanying Warrant Certificate to purchase the shares of
Common Stock issuable upon the exercise of such Warrants and requests that
certificates for such shares be issued in the name of:

         -----------------------------------------------------------------------
         (Please print name and address.)

         -----------------------------------------------------------------------
         (Please insert social security or other identifying number.)

         If such number of Warrants shall not be all the Warrants evidenced by
the accompanying Warrant Certificate, a new Warrant Certificate for the balance
remaining of such Warrants shall be registered in the name of and delivered to:

         -----------------------------------------------------------------------
         (Please print name and address.)

         -----------------------------------------------------------------------
         (Please insert social security or other identifying number.)

         Dated:_______________,________.

                                                          _____________________
                                                            Signature of Holder

                                     NOTICE

         The signature to the foregoing Election to Purchase must correspond to
the name as written upon the face of the accompanying Warrant Certificate or any
prior assignment thereof in every particular, without alteration or enlargement
or any change whatsoever.

                                      B-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]