Document:

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                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT (this "Agreement") made as of the 3rd day of April, 2000
(the "Effective Date") by and between Richard G. Zepernick, Jr. (the
"Executive") and Forcenergy Inc., a Delaware corporation (the "Company" or
"Employer").

                              PRELIMINARY STATEMENT

         The Company is engaged in the oil and gas business, which includes, but
is not limited to, the purchase, sale, development, improvement, drilling and
exploration of oil and gas properties (the "Business").

         The Executive has particular expertise in the Business. This Agreement
shall govern the employment of the Executive.

         NOW, THEREFORE, in consideration of the mutual promises herein
contained, and for other good and valuable consideration, the receipt and
adequacy of which are conclusively acknowledged, the parties hereto, intending
to be legally bound, hereby agree as follows:

         1. TERM. The initial term of the Executive's employment under this
Agreement shall be for a period commencing on the Effective Date and, subject to
the terms hereof, shall terminate on the earlier of (i) two years from the
Effective Date or (ii) the termination pursuant to Sections 8 and 9 hereof. The
term of the Executive's employment hereunder (the "Employment Term") shall be
extended from year to year for additional one-year periods, unless either party
gives at least 120 days prior written notice to the other that no such automatic
extension of the Employment Term shall occur.

         2. DUTIES. The Executive shall serve as the Company's President and
Chief Executive Officer, with such duties as are generally incident to such
position and such other duties as may be hereafter assigned to Executive by the
Board of Directors. The Executive agrees that he will devote his full time and
attention to the affairs of the Company and use his best efforts to promote the
Business and interests of the Company.

         3. COMPENSATION. The Company shall pay the Executive a base salary
("Base Salary") fixed at $350,000 per annum for the period commencing on the
Effective Date and ending on the termination date of Employment Term, payable in
accordance with the Company's customary payroll practice for its senior
executive officers, and subject to the withholding of such amounts relating to
the taxes and other governmental assessments as the Company may reasonably
determine it should withhold pursuant to any applicable law, rule or regulation.
Base Salary shall be subject to review and may be increased (but not decreased)
by the Board of Directors of the Company during the Employment Term.

         4. OPTIONS. The Company shall grant to Executive under the Company's
incentive stock option plan, 240,000 incentive stock options with a strike price
of $10.00 per share (the "Primary Option Grant"). The Company shall also grant
to Executive under the Company's incentive stock option plan, 60,000 incentive
stock options with a strike price of $15.00 per share (the "Secondary Option
Grant"). All stock options granted to the Executive in connection with the
Agreement shall vest 25% each year of employment, 1,2,3 and 4 years after the
Effective Date. All stock options granted to

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the Executive after the Effective Date shall vest 25% each year of employment
1,2,3, and 4 years after the grant date. The term "Stock Options" as used in
this Agreement shall include all stock options, warrants and other rights to
acquire the securities of the Company and any of its subsidiaries or Affiliates,
and all rights to compensation based upon or measured by the stock price or
other indicia of value of the Company.

         5. BENEFITS. The Executive shall be entitled to five (5) weeks vacation
time per calendar year, which vacation shall be scheduled at the mutual
convenience of the Executive and Company. The Executive shall be entitled to
participate in, and receive benefits under, any and all pension, insurance,
hospitalization, medical or disability programs or policies of the Company which
may be in effect at any time during the course of his employment by the Company
and generally available to employees of the Company, subject to the terms of
such plans, programs or policies. Notwithstanding the foregoing, the Company
may, in its discretion at any time and from time to time, change or revoke any
of its employee benefits plans, programs or policies, and the Executive shall
not be deemed, by virtue of this Agreement, to have any vested interest in any
such plans, programs or policies. In conjunction with Executive's relocation of
his principal residence, the Company shall reimburse Executive in accordance
with the Company's relocation policy dated April 3, 2000.

         6. BONUS. The Executive shall be eligible to receive each year during
the Employment Term, a cash incentive payment in an amount equal to 100% of the
Executive's Base Salary (the "Target Bonus"). The amount of the Target Bonus may
vary depending on actual performance of the Company and the Executive as
determined in the discretion of the Board of Directors and/or it's Compensation
Committee. Nothing contained herein shall imply the Company has any obligation
to grant to the Executive any bonus compensation or any increases in Base
Salary. Bonus compensation shall be subject to withholding for taxes and other
deductions as the Company may determine. Upon the occurrence of a Change in
Control, the Company shall pay to the Executive a cash bonus equal to 100% of
the Executive's Base Salary (the "C in C Bonus"), payable within fifteen (15)
days of the date the Change in Control occurs.

         7. EXPENSES. The Executive shall be entitled to reimbursement by the
Company, in accordance with the Company's policies then applicable to employees
at the Executive's level, against appropriate vouchers or other receipts for
authorized travel, entertainment and other business expenses reasonably incurred
by him in the performance of his duties hereunder.

         8. DEATH: PERMANENT DISABILITY. Upon the death of the Executive during
the term of this Agreement, the Employment Term shall terminate. If during the
Employment Term the Executive fails because of illness or other incapacity to
perform the services required to be performed by him hereunder for any period of
more than 90 days during any calendar year (any such illness or incapacity being
hereinafter referred to as "Permanent Disability"), then the Company, in its
discretion, may at any time thereafter terminate the Employment Term upon not
less than 30 days written notice thereof to the Executive, and the Employment
Term shall terminate and come to an end upon the date set forth in said notice
as if said date were the termination date of the Employment Term; provided,
however, that no such termination shall be effective if prior to the date when
such notice is given, the Executive's illness or incapacity shall have
terminated and he shall be physically and mentally able to perform the services
required hereunder and shall have taken up and be performing such duties.

            If the Executive's employment shall be terminated by reason of his
death or Permanent Disability, the Executive or his estate, as the case may be,
shall be entitled to receive (i) any earned and unpaid salary accrued through
the date of termination; (ii) an aggregate amount equal to 2.5 times the

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Executive's average annual compensation for the preceding two years of
employment, as applicable, including Base Salary, Target Bonus and C in C Bonus,
if applicable, payable in a lump sum on the effective date of termination for
Permanent Disability or within 60 days after the Executive's death (payment in
such case being payable to the Executive's estate); and (iii) for a period of
thirty (30) months following the date of termination, the Company, at its cost,
shall provide or arrange to provide to Executive (and, as applicable, to
Executive's dependents) accident and group health insurance benefits
substantially similar to those which Executive (and Executive's dependents) were
receiving immediately prior to Executive's termination or death.

         9. TERMINATION. (a) The Company may terminate the employment of the
Executive at any time, for cause by written notice, the cause to be specified in
the notice. For purposes of this Agreement, "cause" shall mean: (i) any material
misconduct of the Executive in connection with the performance of any of his
material duties hereunder, including, without limitation, misappropriation of
funds or property of the Company, securing or attempting to secure personally
any profit in connection with any transaction entered into on behalf of the
Company, regardless of whether such act results in material financial loss to
the Company or to any of its Affiliates, or any act having the effect of
materially injuring the reputation, business or business relationships of the
Company; (ii) failure, neglect or refusal in any material respect to comply with
and abide by the decisions or directions of the Company; (iii) material breach
of any covenants contained in the Agreement; (iv) conviction of a felony; (v)
drug or alcohol abuse materially affecting the Executive's performance of his
duties under this Agreement, where the Executive has refused medical or
professional help; or (vi) sexual misconduct within the workplace. Termination
for cause shall be effective upon the giving of such notice and, upon the giving
of such notice, the Executive shall be entitled to receive; (i) within thirty
(30) days of the effective date of such termination, any earned and unpaid
salary accrued through the date of termination; and (ii) subject to the terms
thereof, any benefits that may be due to the Executive on the date of
termination under the provisions of any benefits plan, program or policy. After
the termination of the Executive's employment under this Section 9(a), the
obligations of the Company under this Agreement to make any further payments or
to provide any benefits other than those specified herein, to the Executive
shall thereupon cease and terminate.

            (b) The Company may also terminate the Employment Term at any time
without cause. In the event (i) the Company terminates the Employment Term
without cause, (ii) the Company fails to renew this Agreement at the end of the
initial term or any renewal term, or (iii) the Executive terminates the
Employment Term pursuant to a "Termination by Executive for Good Reason" (as
such terms are defined in subparagraph (c) below), the Company shall pay to the
Executive, in addition to all sums then accrued, due and payable under the
Agreement, an aggregate amount equal to two (2.0) times the Executive's average
annual compensation for the preceding two years of employment, as applicable,
including Base Salary, Target Bonus and C in C Bonus, if applicable (the
"Severance Payment"), payable in a lump sum on the effective date of the
termination of the employment; and for a period of thirty (30) months following
the date of termination, the Company, at its cost, shall provide or arrange to
provide to Executive (and, as applicable, to Executive's dependents) accident
and group health insurance benefits substantially similar to those which
Executive (and Executive's dependents) were receiving immediately prior to
Executive's termination. Further, effective with the effective date of the
termination of the employment as provided in this subparagraph (b), Executive
shall be considered as immediately vested in 50% of the unvested Primary Option
Grant, which shall become exercisable for a period ending 90 days after the
effective date of termination of employment; further, Executive shall be
considered as immediately vested in 100% of the Secondary Option Grant and all
subsequent option grants, which shall become exercisable for a period ending 90
days after the effective date of termination of employment. However,
notwithstanding any other provision of this

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Agreement, if the Executive terminates the Employment Term pursuant to a
Termination by Executive for Good Reason, or within twenty-four (24) months
after a Change in Control, 100% of an Stock Options shall immediately vest and
become exercisable for a period ending eighteen (18), months after the effective
date of termination of employment.

            (c) For purposes of the Agreement, the following capitalized terms
shall have the meanings set forth herein:

                  (i) "Affiliate" shall mean any "person" (as such term is
utilized in Section 13 (d) and Section 14 (d) (2) of the Securities Exchange Act
of 1934, as amended and in effect on the date of this Agreement (the "Exchange
Act"), who or which, directly and/or indirectly, controls, is controlled by or
is under common control with another person. For purposes of this definition,
"control" means the possession, directly or indirectly, of the power to direct
or cause the direction of management and policies, whether through ownership of
voting securities, by contract, or otherwise.

                  (ii) "Change in Control": a Change in Control shall be deemed
to occur if:

                        (A) any "person" (as such term is utilized in Section 13
(d) and Section 14 (d) (2) of the Exchange Act), including without limitation
any "group" (as such term is utilized in Section 13 (d) (3) of the Exchange
Act), who is not, on the date of this Agreement, an Affiliate of the Company,
shall become the "beneficial owner" (as such term is defined in Rule 13d-3 under
the Exchange Act) of securities of the Company representing more than 40% of the
votes that may be cast for the election of directors of the Company; or

                        (B) as a result of, or in connection with, any cash or
other tender offer, or exchange offer, merger, consolidation or other business
combination, sale of assets, liquidation or dissolution, or any combination of
any one or more of the foregoing transactions, the persons who were directors of
the Company immediately prior to the consummation of any such transaction or
combination of transactions shall cease to constitute a majority of the
directors of the Company, or any successor thereto.

                  (iii) "Termination by Executive for Good Reason" shall mean a
termination of the Executive's employment by the Executive upon the occurrence
of any one or more of the following:

                        (A) the occurrence of any Change in Control, but only if
the Executive does not receive Stock Options and other benefits in amounts and
on such terms at least as favorable to the Executive as they existed prior to
the Change in Control;

                        (B) the reassignment of the Executive by Employer,
without the Executive's express written consent, to a position with Employer
other than that set forth in Section 2 hereof, or a materially adverse change in
the nature or scope of the Executive's title, authorities, powers, functions,
duties or responsibilities in those positions;

                        (C) the reduction in the Executive's Base Salary without
the Executive's consent;

                        (D) (i) the relocation of the Company's principal
executive offices outside the greater New Orleans metropolitan area without the
Executive's consent; or

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                        (E) the Company's failure to perform its obligations
under this Agreement in any material respect that remains uncured 10 days after
the Company received notice of its default, including without limitation, the
failure of the Company to pay compensation in accordance with this Agreement or
the failure of the Company to provide the Executive with fringe benefits
substantially the same as those previously provided to the Executive under this
Agreement provided, however, that a change in the benefits available to the
executive officers of the Company shall not constitute such a failure so long as
such change of benefits is applied consistently with respect to all executive
officers of the Company;

                        (F) the failure of the Company to obtain a satisfactory
agreement from any successor to assume and agree to perform this Agreement.

            (d) In the event that the Company shall terminate the employment of
the Executive without cause at any time after a Change in Control or in the
event the Executive terminates the Employment Term for any reason at any time
within twenty-four (24) months after a Change in Control, the Company shall pay
to the Executive, in addition to all sums then accrued, due and payable under
this Agreement, an aggregate amount equal to 2.5 times the Executive's average
annual compensation for the preceding two years of employment, as applicable,
including Base Salary, Target Bonus and C in C Bonus, payable in a lump sum on
the effective date of termination of employment; and for a period of thirty (30)
months following the date of termination, the Company, at its cost, shall
provide or arrange to provide to Executive (and, as applicable, to Executive's
dependents) accident and group health insurance benefits substantially similar
to those which Executive (and Executive's dependents) were receiving immediately
prior to Executive's termination. All Stock Options issued to the Executive
prior to the Change in Control shall immediately vest and become exercisable as
of the effective date of the Change in control. All Stock Options issued to the
Executive after a Change in Control shall immediately vest and become
exercisable as of the effective date of termination and remain exercisable for a
period ending eighteen (18) months after the effective date of termination of
employment.

            (e) Notwithstanding anything to the contrary in this Agreement, in
the event that any payment or distribution by the Employer to or for the benefit
of the Executive, whether paid or payable or distributed or distributable
pursuant to this Agreement or otherwise (a "Payment"), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code or any interest
or penalties with respect to such excise tax (such excise tax, together with any
such interest or penalties, are hereinafter collectively referred to as the
"Excise Tax"), the Employer shall pay to the Executive an additional payment not
to exceed $500,000 in the aggregate (a "Gross-up Payment") in an amount such
that after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax imposed
on any Gross-up Payment, the Executive retains an amount of the Gross-up Payment
equal to the Excise Tax imposed upon the Payment. The Employer and the Executive
shall make an initial determination as to whether a Gross-up Payment is required
and the amount of any such Gross-up Payment. The Executive shall notify the
Employer in writing of any claim by the Internal Revenue Service which, if
successful, would require the Employer to make a Gross-up Payment (or a Gross-up
Payment in excess of that, if any, initially determined by the Employer and the
Executive) within ten days of the receipt of such claim. The Employer shall
notify the Executive in writing at least ten days prior to the due date of any
response required with respect to such claim if it plans to contest the claim.
If the Employer decides to contest such claim, the Executive shall cooperate
fully with the Employer in such action; provided, however, the Employer shall
bear any pay directly or indirectly all costs and expenses (including additional
interest and

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penalties) incurred in connection with such action and shall indemnify and hold
the Executive harmless, on an after-tax basis, for any Excise Tax or income tax,
including interest and penalties with respect thereto, imposed as a result of
the Employer's action. If, as a result of the Employer's action with respect to
a claim, the Executive receives a refund of any amount paid by the Employer
with respect to such claim, the Executive shall promptly pay such refund to the
Employer. If the Employer fails to timely notify the Executive whether it will
contest such claim or the Employer determines not to contest such claim, then
the Employer shall immediately pay the Executive the portion of such claim, if
any, which it has not previously paid to the Executive.

         10. NON-SOLICITATION. (a) The Executive will not at any time during his
employment with the Company and for one year thereafter, directly or indirectly
solicit (or assist or encourage the notification of or offer employment) to any
person who has been an employee of the Company, or any of its subsidiaries or
affiliates, at any time during the six months immediately preceding such
solicitation, to work for the Executive or for any business, firm, corporation
or other entity in which the Executive, directly or indirectly, participates or
engages (or expects to participate or engage) or has (or expects to have) a
financial interest or management position; PROVIDED HOWEVER, that this paragraph
shall not prohibit an Executive who is no longer employed by the Company from
soliciting or offering employment to a former employee of the Company whose
employment with the Company had terminated prior to the date of the Executive's
employment with the Company terminated. Provided further that the obligations of
nonsolicitation set forth in this paragraph shall not apply to an Executive who
is no longer employed by the Company as a result of a Change of Control.

         11. CONFIDENTIALITY. The Executive acknowledges that, during and as a
result of Ms employment hereunder, he may have access to trade secrets and other
confidential information of the Company, including, but not limited to, the
nature and material terms of business opportunities and proposals available to
the Company, technical memoranda, research reports, designs and specifications,
operating procedures, ledgers, and other information, data and documents
relating to the Company's present or future operations, including, but not
limited to geological, seismic, 3-D seismic, and all other studies conducted by,
or on behalf of, the Company's oil and gas properties and prospects
(collectively, the "Confidential Information). The Executive covenants and
agrees that he shall not at any time during or following any termination of
employment, without the consent of the Company use or disclose (except for the
sole and exclusive benefit of the Company or as required to perform his duties
under this Agreement, or as required by law or as it already in the public
domain) any confidential Information which has been obtained by or disclosed to
him as a result of his employment with the Company.

         12. ADDITIONAL REMEDY. If the Executive breaches any of the provisions
of Section 10 or 11 of this Agreement, then the Company, in addition to all
other rights and remedies hereunder, may cease making payments to the Executive
under Sections 3 or 6 under this Agreement, require Executive to repay to the
Company any payments previously made under such Sections and obtain an
injunction against the Executive from any court having jurisdiction over the
matter restraining any further violation of this Agreement by the Executive.

         13. NOTICES.   Any notice required or permitted to be given under this
Agreement shall be in writing, and shall be given by hand-delivery to the
addressee or by deposit in the U.S. mail, postage prepaid, certified mail,
return receipt requested, as follows:

            If to the Company, to:

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            Forcenergy Inc
            3838 N. Causeway Blvd.
            Lakeway Three, Suite 23 00
            Metairie, Louisiana 70002
            Attention: President

            If to the Executive, to:

            Richard G. Zepernick, Jr.
            132 Shannon Rd
            Lafayette, LA 70503

or such other address as either party may specify by notice hereunder to the
other. Any notice sent in accordance with the foregoing provisions shall be
deemed given on the date of receipt if personally delivered, or on the date
three (3) days after being deposited in the mail, if mailed.

         14. MISCELLANEOUS. (a) This Agreement incorporates the entire agreement
between the parties hereto pertaining to the subject matter hereof, and
supersedes all prior and contemporaneous; agreements, understandings,
negotiations and discussions of the parties, whether oral or written, and there
are no warranties, representations and other agreements between the parties in
connection with the subject matter hereof, except as specifically set forth
herein. No amendment, supplement, modification or waiver of this Agreement shall
be binding upon a party hereto unless in writing and executed by such party.

            (b) The domestic internal laws of the State of Louisiana shall
govern the validity, construction and effect of this Agreement, without regard
to conflicts of laws principles.

            (c) Each of the provisions of this Agreement shall be independent of
all other provision, and if any provision of this Agreement is declared void or
invalid by any court or other governmental agency of competent jurisdiction,
each other provision of this Agreement shall remain in full force and effect and
shall be construed to the extent possible as consistent with all other valid
provisions in order to carry out the intent of the parties hereto.

            (b) Any dispute or misunderstanding arising out of or in connection
with this Agreement, except any alleged violation of Sections 10 or 11, shall
first be settled, if possible, by the parties themselves through negotiation
and, failing success at negotiation, through mediation and, failing success at
mediation, shall be arbitrated in New Orleans, Louisiana, unless otherwise
agreed upon in writing by the Company and the Executive. Unless otherwise agreed
upon in writing by the Company and the Executive, the arbitration shall be had
before three arbitrators, each party designating an arbitrator and the two
designees naming a third arbitrator experienced in employment related
controversies. The arbitration procedure shall be in accordance with the rules
and regulations of the American Arbitration Association.

            (c) In any proceeding related to the enforcement or breach of this
Agreement, if the Executive is the prevailing party, the Company shall pay the
reasonable costs of any legal fees, other fees and expenses which may be
incurred by the Executive in connection with such proceeding. If the Company is
the prevailing party in such proceeding, each party shall pay its own legal
fees, other fees and expenses which may be incurred in connection with the
proceeding. For purposes of this Agreement, the party initiating the proceeding
shall be deemed to be the prevailing party in such

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proceeding if the party initiating the proceeding is awarded in excess of 50% of
the amount sought in the proceeding and the non-initiating party shall be deemed
to be the prevailing party if the party initiating the proceeding is awarded 50%
or less of the amount sought in the proceeding.

            (d) This Agreement shall be binding upon and inure to the benefit of
the respective heirs, executors, administrators, successors and assigns of the
Company and the Executive. If the Company, shall, at any time, be merged with or
consolidated into or with any other corporation or person or if all or
substantially all of the assets of the Company are transferred to another
corporation or person, the provisions of this Agreement shall be binding upon
and inure to the benefit of the entity resulting from such merger or
consolidation or the corporation or person to which or to whom such assets shall
be transferred, and this provision shall apply in the event of any subsequent
mergers, consolidations or transfers of assets.

            (e) This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

            (f) The section headings of this Agreement are inserted for the
convenience of reference only and are not intended to affect the meaning or
interpretation of this Agreement.

            (g) This Agreement shall be construed within the fair meaning of
each of its terms and not against the party drafting the document.

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

                                                COMPANY:

                                                FORCENERGY INC

                                                By: /s/ Thomas F. Getten
                                                   -----------------------
                                                   Vice President

                                                EXECUTIVE:

                                                   /s/ Richard G. Zepernick
                                                 -------------------------
                                                 Richard G. Zepernick, Jr.

                                       9<PAGE>
                    SALEM COMMUNICATIONS HOLDING CORPORATION
                                 AMENDMENT NO. 1

         AMENDMENT NO. 1 (this "AMENDMENT"), dated as of January 15, 2001, to
the Third Amended and Restated Credit Agreement, dated as of November 7, 2000,
by and among SALEM COMMUNICATIONS HOLDING CORPORATION, a Delaware corporation
(the "BORROWER"), THE BANK OF NEW YORK, as administrative agent for the Lenders
thereunder (in such capacity, the "ADMINISTRATIVE AGENT"), BANK OF AMERICA,
N.A., as Syndication Agent, FLEET NATIONAL BANK, as Documentation Agent, and
UNION BANK OF CALIFORNIA, N.A. and THE BANK OF NOVA SCOTIA, as Co-Agents, and
the Lenders party thereto (the "CREDIT AGREEMENT").

                                    RECITALS

        I.       Except as otherwise  provided herein,  capitalized  terms used
herein which are not defined herein shall have the meanings set forth in the
Credit Agreement.

        II.      The Borrower has requested that the Administrative Agent and
the Required Lenders amend the Credit Agreement upon the terms and conditions
contained herein, and the Administrative Agent and the Required Lenders are
willing to do so.

        Accordingly, in consideration of the covenants, conditions and
agreements hereinafter set forth, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, and pursuant to
Section 11.1 of the Credit Agreement, the parties hereto agree as follows:

        1.       Section 1.1 of the Credit  Agreement shall be amended by adding
the following  defined terms in the  appropriate  alphabetical order:

          "KALC DEPOSIT ARRANGEMENT": the deposit of the proceeds
   received from the KALC Sale with the Exchange Agent pursuant to a
   intermediary agreement in all respects satisfactory to the
   Administrative Agent in connection with the qualification of the KALC
   Sale as a like-kind exchange under Section 1031 of the Code.

          "KALC EXCHANGE AGENT": BNY or such other intermediary satisfactory to
   the Administrative Agent.

          "PENDING TRANSACTIONS": as defined in Section 8.3(d).

<PAGE>

        2.       Section 1.1 of the Credit Agreement shall be amended by
amending and restating the defined terms "Equity Issuance", "Fixed Charges" and
"Stock" to read as follows:

                 "EQUITY ISSUANCE": (a) the issuance or sale by the Parent or
         any of its Subsidiaries after the Second Restatement Date of (i) any
         capital stock (other than capital stock issued on the exercise of the
         Bridge Warrants or any other warrants or options described in clause
         (ii) below), (ii) any warrants or options exercisable in respect of
         capital stock (other than any warrants or options issued to directors,
         officers or employees of the Parent or of any of its Subsidiaries),
         (iii) any other security or instrument representing an equity interest
         (or the right to obtain any equity interest) in the issuing or selling
         Person or (b) the receipt by the Parent or any of its Subsidiaries
         after the Second Restatement Date of any capital contribution (whether
         or not evidenced by any equity security issued by the recipient of that
         contribution) other than (x) the Dropdown (as defined in the Parent
         Guaranty) and (y) any capital contribution by (1) any Subsidiary of the
         Parent to the Parent or to any wholly-owned Subsidiary of the Parent or
         (2) the Parent or by any wholly-owned Subsidiary of the Parent to any
         Subsidiary of the Parent (other than a capital contribution made with
         the Net Equity Proceeds of an Equity Issuance described in clause (a)
         of this definition); PROVIDED that an "Equity Issuance" shall not
         include the issuance or sale by the Parent of Class A common Stock of
         the Parent to the extent that such Stock or the Net Equity Proceeds
         derived from the sale or issuance of such Stock shall be used to make
         an acquisition of one or more Broadcasting Stations pursuant to Section
         8.3(c)(i). For purposes of this definition, prior to the Bridge
         Termination Date, Subsidiaries of the Parent shall not include
         Acquisition Corp. or any of its Subsidiaries.

                 "FIXED CHARGES": at any date of determination, the sum,
         without duplication, of (a) Debt Service, (b) cash income taxes paid
         (other than cash taxes paid in connection with a sale of Property but
         only to the extent such cash taxes are paid from the proceeds of such
         sale), (c) capital expenditures (excluding (i) capital expenditures
         made with insurance proceeds and capital expenditures associated with
         an acquisition made within the 12 month period immediately following
         such acquisition and (ii) capital expenditures made in the network
         operations center located in Dallas, Texas (not in excess of $4,000,000
         in the aggregate)), and (d) intercompany loans made to, or investments
         made in, the Other Media Subsidiaries, PROVIDED that if Other Media
         Cash Flow is negative, such negative Other Media Cash Flow (expressed
         as a positive number) shall be subtracted from such intercompany loans
         and investments (provided that

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         the resulting difference shall not be less than $0), in each case of
         the Parent and its Subsidiaries on a Consolidated basis, determined in
         accordance with GAAP, for the period of four consecutive fiscal
         quarters ending on, or most recently before, such date.

                 "STOCK":  any and all shares,  interests,  participations,
        options,  warrants or other equivalents (however designated) of
        corporate stock, partnership interests and membership and other limited
        liability company interests.

        3.       Section 1.1 of the Credit Agreement shall be amended by
amending the defined term "Operating Cash Flow" to add the words "and interest
income" immediately after the parenthetical phrase "(exclusive of reciprocal and
barter revenues)" appearing in clause (i) thereof.

        4.       Section 2.4(b) of the Credit Agreement shall be amended by (a)
inserting the word "cash" before the word "proceeds" in the third line of clause
(iv) thereof and (b) inserting the word "cash" before the word "proceeds" in the
third line of clause (v) thereof.

        5.       Section  2.5(b) of the Credit Agreement shall be amended by
amending and restating the second sentence thereof to read as follows:

         Upon receipt of any Net Sale Proceeds (to the extent received in cash),
         including the receipt by the Parent or any of its Subsidiaries of Net
         Sale Proceeds from the KALC Sale (provided that, to the extent that
         such KALC Sale Net Sale Proceeds have been deposited with the KALC
         Exchange Agent in accordance with the KALC Deposit Arrangement, such
         Net Sales Proceeds shall not be deemed received in cash until the KALC
         Exchange Agent shall have released such Net Sales Proceeds to the
         Parent or any of its Subsidiaries), the Borrower shall immediately
         prepay the KALC RC Loans in an equal amount until the KALC RC Loans are
         repaid in full.

        6.       Section 6.3 of the Credit Agreement is amended and restated in
its entirety to read as follows:

        6.3      CONSOLIDATED ANNUAL OPERATING CASH FLOW TO INTEREST EXPENSE.

                 The Parent shall maintain as at the end of each fiscal quarter
         during the applicable periods set forth below a ratio of Consolidated
         Annual Operating Cash Flow to Interest Expense not less than the ratio
         set forth below opposite the applicable period set forth below:

                                       3
<PAGE>

<TABLE>
<CAPTION>
====================================================================== ===================
                               PERIODS                                       RATIO
---------------------------------------------------------------------- -------------------
<S>                                                                        <C>
Second Restatement Date through December 31, 2000                          1.75:1.00
---------------------------------------------------------------------- -------------------
January 1, 2001 through September 30, 2001                                 1.50:1.00
---------------------------------------------------------------------- -------------------
October 1, 2001 through March 30, 2002                                     1.75:1.00
---------------------------------------------------------------------- -------------------
March 31, 2002 through March 30, 2003                                      2.00:1.00
---------------------------------------------------------------------- -------------------
March 31, 2003 through March 30, 2004                                      2.25:1.00
---------------------------------------------------------------------- -------------------
March 31, 2004 and thereafter                                              2.50:1.00
====================================================================== ===================
</TABLE>

        provided that if the Borrower shall make an acquisition pursuant to
        Section 8.3(d)(i)(A) or 8.3(d)(i)(B) at any time during the period from
        January 1, 2001 through September 30, 2001, the required ratio of
        Consolidated Annual Operating Cash Flow to Interest Expense for the
        balance of such period shall automatically increase to 1.75:1.00.

        7.       Section 7.3 of the Credit Agreement is amended and restated in
its entirety to read as follows:

                 Except as otherwise permitted by Sections 8.3 and 8.7,
        maintain, and cause each Subsidiary to maintain, its corporate or other
        existence, and maintain, and cause each Subsidiary to maintain, its
        good standing in the jurisdiction of it incorporation or organization
        and in each other jurisdiction in which failure so to do could
        reasonably be expected to have a Material Adverse Effect.

        8.       Section 8.3 of the Credit Agreement is amended and restated in
its entirety to read as follows:

                 8.3      MERGER OR ACQUISITION OF PROPERTY.

                 Consolidate with, be acquired by, or merge into or with any
        Person, or acquire all or substantially all of the Stock or Property of
        any Person, or any Broadcasting Station (which term for purposes of
        this Section 8.3 shall include any broadcast license issued by the FCC
        for the operation of a Broadcasting Station), or permit any Subsidiary
        so to do, except:

                 (a) any wholly-owned Subsidiary may (i) merge with the
        Borrower (with the Borrower as survivor) or (ii) merge with or acquire
        all or substantially all of the Stock or Property of another
        wholly-owned Subsidiary;

                 (b) the Borrower or any wholly-owned Subsidiary may acquire
        one or more Broadcasting Stations owned by another Person in exchange

                                         4
<PAGE>

        (pursuant to an exchange permitted pursuant to Section 8.7(d)) for one
        or more Broadcasting Stations owned by the Borrower or such
        wholly-owned Subsidiary, PROVIDED that not later than 15 days prior to
        the consummation of any such exchange, the Borrower shall have
        delivered to the Administrative Agent financial statements for the next
        four full fiscal quarters of the Borrower, prepared on a pro forma
        basis reflecting the consummation of such exchange, together with a
        certificate of an Authorized Signatory of the Borrower certifying that
        the Borrower is in pro forma compliance with the terms, covenants,
        provisions and conditions of this Agreement, including Sections 6.1,
        6.2, 6.3, 6.4 and 6.5 (and attaching calculations with respect to
        Sections 6.1, 6.2, 6.3, 6.4 and 6.5), all in form and substance
        reasonably satisfactory to the Administrative Agent;

                 (c) provided that immediately before and after giving effect
        thereto, all representations and warranties contained in the Loan
        Documents shall be true and correct and no Default or Event of Default
        shall exist:

                          (i)    the Borrower or any wholly-owned Subsidiary
         may make acquisitions, including through a merger (with the Borrower
         or such wholly-owned Subsidiary (or a Person that becomes a wholly-
         owned Subsidiary) as the survivor thereof), of Broadcasting Stations,
         PROVIDED that the aggregate gross consideration paid for such
         acquisition is payable solely in Class A common Stock of the Parent
         and/or Net Equity Proceeds received by the Parent not earlier than 10
         days prior to such acquisition from the issuance or sale of Class A
         common Stock of the Parent,

                          (ii)   the Borrower or any wholly-owned Subsidiary may
         consummate those transactions which are listed on Schedule 8.3(c)
         (collectively, the "DESIGNATED TRANSACTIONS"), PROVIDED that not later
         than 15 days prior to the consummation of any such transaction, the
         Borrower shall have delivered to the Administrative Agent financial
         statements for the next four full fiscal quarters of the Borrower,
         prepared on a pro forma basis reflecting the consummation of such
         transaction, together with a certificate of an Authorized Signatory of
         the Borrower certifying that the Borrower is in pro forma compliance
         with the terms, covenants, provisions and conditions of this Agreement,
         including Sections 6.1, 6.2, 6.3, 6.4 and 6.5 (and attaching
         calculations with respect to Sections 6.1, 6.2, 6.3, 6.4 and 6.5), all
         in form and substance reasonably satisfactory to the Administrative
         Agent, and

                                       5
<PAGE>

                          (iii)  the Borrower may acquire all of the issued and
         outstanding  Stock of Acquisition Corp. and any intercompany
         Indebtedness  of Acquisition  Corp. held by the Parent pursuant to the
         Dropdown (as defined in the Parent Guaranty);

                 (d) upon 30 days' notice to the Administrative Agent, the
        Borrower or any wholly-owned Subsidiary may make other acquisitions,
        including through a merger (with the Borrower or such wholly-owned
        Subsidiary (or a Person that becomes a wholly-owned Subsidiary) as the
        survivor thereof), PROVIDED that:

                          (i):   such acquisition or merger shall meet any of
         the following requirements:

                                (A)   if  immediately  before or after giving
        effect to such acquisition  or merger the Total Leverage Ratio shall
        exceed 5.50:1.00 (in such case, a "LEVERAGED ACQUISITION"), (I) the
        aggregate gross consideration paid or payable for such Leveraged
        Transaction (including capital expenditures relating to such Leveraged
        Acquisition that are reasonably anticipated for the 12 month period
        following such Leveraged Acquisition), when added to the aggregate gross
        consideration paid or payable for all Leveraged Acquisitions (including
        capital expenditures relating to each such Leveraged Acquisition that
        were reasonably anticipated for the 12 month period following such
        Leveraged Acquisition) made during the period commencing on the Second
        Restatement Date and ending through and including the date of the
        Leveraged Acquisition then being contemplated, shall not exceed
        $50,000,000 LESS the aggregate gross consideration paid or payable for
        each acquisition or merger made pursuant to Section 8.3(d)(i)(D)
        (including capital expenditures relating to each such acquisition or
        merger that were reasonably anticipated for the 12 month period
        following such acquisition or merger) if immediately before or after
        giving effect to such acquisition or merger made pursuant to Section 8.
        3(d)(i)(D) the Total Leverage Ratio shall exceed 5.50:1.00, and (II)
        immediately before and after giving effect to such Leveraged Acquisition
        the ratio of Consolidated Annual Operating Cash Flow to Interest Expense
        shall not be less than 1.75:1.00,

                                (B)   immediately  before and after giving
        effect to such  acquisition or merger (I) the Total Leverage Ratio shall
        be less than or equal to 5.50:1.00 and (II) the ratio of Consolidated
        Annual Operating Cash Flow to Interest Expense shall not be less than
        1.75:1.00,

                                       6
<PAGE>

                                (C)   the aggregate gross  consideration  paid
        or payable for such acquisition or merger (including capital
        expenditures relating to such acquisition or merger that are reasonably
        anticipated for the 12 month period following such acquisition or
        merger), when added to the aggregate gross consideration paid or payable
        for each such acquisition or merger (including capital expenditures
        relating to each such acquisition or merger that were reasonably
        anticipated for the 12 month period following such acquisition or
        merger) made during the period commencing on January 15, 2001 and ending
        through and including the date of the acquisition or merger then being
        contemplated, shall not exceed 50% of the Net Sale Proceeds received
        from the sale of Property pursuant to Section 8.7(d) after January 15,
        2001, or

                                (D)   such  acquisition  or  merger  is one of
        the  pending  transactions  set  forth on Schedule 8.3(d) (collectively,
        the "PENDING TRANSACTIONS"),

                          (ii)   immediately before and after giving effect to
         any such proposed acquisition or merger, all representations and
         warranties contained in the Loan Documents shall be true and correct
         and no Default or Event of Default shall exist,

                          (iii)  the Borrower shall have received with respect
         to each such acquisition or merger an order from the FCC in respect of
         the acquisition or merger of a Broadcasting Station (which FCC order
         need not have become a final order) and all other similar material
         orders from all other applicable Governmental Authorities, with regard
         to the acquisition or merger, authorizing the applicable transactions,
         if required by applicable law, and the Administrative Agent shall have
         received true, complete and correct copies, certified by an Authorized
         Signatory of the Borrower, of all such orders, and

                          (iv)   not later than 15 days prior to the
         consummation of any such acquisition or merger, the Borrower shall have
         delivered to the Administrative Agent financial statements for the next
         four full fiscal quarters of the Borrower, prepared on a pro forma
         basis reflecting the consummation of such acquisition, together with a
         certificate of an Authorized Signatory of the Borrower certifying that
         the Borrower is in pro forma compliance with the terms, covenants,
         provisions and conditions of this Agreement, including Sections 6.1,
         6.2, 6.3, 6.4 and 6.5 (and attaching calculations with respect to
         Sections 6.1, 6.2, 6.3, 6.4 and 6.5), all in form and substance
         reasonably satisfactory to the Administrative Agent.

                                       7
<PAGE>

                  (e)      as permitted under Section 8.5; and

                  (f) the Common Ground Reorganization, PROVIDED that (i)
         immediately before and after giving effect to the Common Ground
         Reorganization, all representations and warranties contained in the
         Loan Documents shall be true and correct and no Default or Event of
         Default shall exist, (ii) the Borrower shall have received with respect
         to the Common Ground Reorganization an order (subject to no pending
         contest or administrative review) from the FCC (in respect of each
         affected Broadcasting Station) and all other similar material orders
         from all other applicable Governmental Authorities, with regard to the
         Common Ground Reorganization, authorizing the applicable transactions,
         if required by applicable law, and the Administrative Agent shall have
         received true, complete and correct copies, certified by an Authorized
         Signatory of the Borrower, of all such orders, (iii) the Common Ground
         Collateral Release shall not have occurred more than five Business Days
         prior to the consummation of the Common Ground Reorganization and (iv)
         within five Business Days after the consummation of the Common Ground
         Reorganization, (A) Common Ground Broadcasting, Inc. and each
         Subsidiary that receives transferred assets and that is not then a
         party to the Subsidiary Guaranty shall become a party to the Subsidiary
         Guaranty, and (B) the Borrower and each Subsidiary that receives
         transferred assets shall grant a security interest pursuant to the
         Borrower Security Agreement or the Subsidiary Guaranty in and to all of
         the assets transferred to it, all in the manner required by this
         Section 8.3.

                  If the aggregate gross consideration for any such acquisition
         or merger permitted by Section 8.3(b) or 8.3(d) (including capital
         expenditures relating to such acquisition or merger that are reasonably
         anticipated for the 12 month period following such acquisition or
         merger) exceeds $10,000,000, (i) the Borrower shall have delivered to
         the Administrative Agent and each Lender such details of such
         transaction as the Administrative Agent or any Lender (through the
         Administrative Agent) shall reasonably request, and (ii) the Borrower
         shall have delivered to the Administrative Agent a certificate of an
         Authorized Signatory of the Borrower certifying that (A) the Borrower
         is in pro-forma compliance with the terms, covenants, provisions, and
         conditions of this Agreement, including, without limitation, Sections
         6.1, 6.2, 6.3, 6.4 and 6.5 (and attaching calculations with respect to
         Sections 6.1, 6.2, 6.3, 6.4 and 6.5), and (B) immediately before and
         after giving effect to any such acquisition or merger, all
         representations and warranties contained in the Loan Documents are true
         and correct and no Default or Event of Default exists.

                                       8
<PAGE>

                  If the aggregate gross consideration for any such acquisition
         or merger permitted by Section 8.3(b) or 8.3(d) (including capital
         expenditures relating to such acquisition or merger that are reasonably
         anticipated for the 12 month period following such acquisition or
         merger) exceeds $20,000,000, the Borrower shall have delivered to the
         Administrative Agent and each Lender an independent appraisal of each
         Property to be acquired, such appraisal to be in all respects
         satisfactory to the Administrative Agent.

                  Immediately upon the consummation of any acquisition or merger
         permitted under Sections 8.3(b), 8.3(c) or 8.3(d), (i) the Borrower
         shall have delivered to the Administrative Agent such UCC financing
         statements and other documents as the Administrative Agent shall
         reasonably require in order to grant to the Administrative Agent a
         first priority perfected security interest in the Property acquired
         under and pursuant to the Collateral Documents, subject to no Liens
         other than Permitted Liens, (ii) if the Borrower shall have created or
         acquired a Subsidiary in connection with such acquisition, such
         Subsidiary shall have become a party to the Subsidiary Guaranty and
         (iii) the Borrower shall have delivered to the Administrative Agent
         such opinions and other documents as the Administrative Agent shall
         reasonably require in connection therewith.

        9.       Section 8.7(b) of the Credit Agreement is amended and restated
in its entirety to read as follows:

                 (b)      transfers permitted by Section 8.3 and Section 8.5;

        10.      Section 8.7(e) of the Credit Agreement is amended and restated
in its entirety to read as follows:

                 (e) Acquisition Corp. may consummate the KALC Sale in
         accordance with the terms of the KALC Purchase Agreement, provided that
         the Borrower shall immediately prepay the then outstanding balance of
         the KALC RC Loans upon receipt of the proceeds of the KALC Sale in
         accordance with Section 2.5; provided further that, in the event that
         the Loan Party receiving such proceeds shall elect to deposit the
         proceeds of the KALC Sale with the KALC Exchange Agent in accordance
         with the KALC Deposit Arrangement, such Loan Party shall grant to the
         Administrative Agent a first priority perfected security interest in
         and to all of such Loan Party's right, title and interest in and to
         such deposit and all documentation executed and delivered in connection
         with the KALC

                                       9
<PAGE>

         Deposit Arrangement pursuant to documentation in all respects
         satisfactory to the Administrative Agent.

        11.      Section 8.19 of the Credit Agreement is amended and restated in
its entirety to read as follows:

        8.19     CHANGE IN NAME, JURISDICTION OF ORGANIZATION; NATURE OF
BUSINESS.

                 Change its legal name or the jurisdiction of its organization,
         make any material change in the nature of its business, taken as a
         whole, as conducted on the Second Restatement Date, or convert its form
         of organization to another form of organization, or permit any of its
         Subsidiaries so to do, except that any Subsidiary may change its name
         or the jurisdiction of its organization or convert its form of
         organization to a corporation or limited liability company, PROVIDED
         that the Subsidiary (i) shall provide to the Administrative Agent 30
         days (or such lesser period as shall be satisfactory to the
         Administrative Agent) prior written notice of such change or
         conversion, (ii) no fewer than 10 days (or such lesser period as shall
         be satisfactory to the Administrative Agent) prior to the applicable
         change or conversion, shall have taken all steps necessary or
         reasonably required by the Administrative Agent to maintain its
         guaranty and the perfection of the Security Interest under the
         Subsidiary Guaranty and (iii) shall deliver to the Administrative Agent
         such certificates, Uniform Commercial Code financing statements, legal
         opinions and other documents as the Administrative Agent shall
         reasonably require.

        12.      The Credit Agreement is amended to add a new Schedule 8.3(d) in
the form attached hereto.

        13.      The Required  Lenders hereby consent to the execution and
delivery of Amendment No. 1 to the Parent Guaranty  substantially in the form
attached hereto.

        14.      Paragraphs 1-13 of this Amendment shall not become effective
until the Administrative Agent shall have received:

                 (a)   counterparts of this Amendment duly executed by the
        Borrower,  the Subsidiary  Guarantors,  the  Administrative  Agent and
        the Required Lenders;

                 (b)      counterparts  of  Amendment  No. 1 to the Parent
        Guaranty  substantially  in the form  attached  hereto duly  executed by
        the Parent, the Borrower and the Administrative Agent;

                 (c)      a certificate, dated the date hereof, of the Secretary
        or an Assistant Secretary of each Loan Party attaching a true and
        complete copy of the resolutions

                                       10
<PAGE>

        of its Board of Directors or other authorizing documents and of all
        documents evidencing all necessary corporate or other action (in form
        and substance reasonably satisfactory to the Administrative Agent) taken
        by it to authorize this Amendment, Amendment No. 1 to the Parent
        Guaranty and the transactions contemplated hereby and thereby;

                 (d)      an opinion of the General Counsel of the Parent and
        the Borrower, addressed to the Administrative Agent and the other Credit
        Parties in form and substance satisfactory to the Administrative Agent.
        It is understood that such opinion is being delivered to the
        Administrative Agent and the other Credit Parties upon the direction of
        the Parent and the other Loan Parties and that the Administrative Agent
        and the other Credit Parties may and will rely upon such opinion; and

                 (e)      for the account of each Lender executing and
        delivering (without condition) this Amendment and Amendment No. 1 to the
        Parent Guaranty to the Administrative Agent before 5:00 p.m. (New York
        City time) on January 29, 2001, an amendment fee equal to 0.125% of such
        Lender's RC Commitment on such date.

         Upon this Amendment becoming effective in accordance with this
Paragraph 14, the definition of "Fixed Charges", as amended and restated
pursuant to Paragraph 2, shall be deemed effective as of the Second Restatement
Date.

        15.      In all other respects the Credit Agreement and other Loan
Documents shall remain in full force and effect.

        16.      In order to induce the Administrative Agent and the Required
Lenders to execute and deliver this Amendment, the Borrower and the Subsidiary
Guarantors each (a) certifies that, immediately after giving effect to this
Amendment, all representations and warranties contained in the Loan Documents to
which it is a party shall be true and correct in all respects with the same
effect as though such representations and warranties had been made on the date
hereof, except as the context otherwise requires or as otherwise permitted by
the Loan Documents or this Amendment, (b) certifies that, immediately after
giving effect to this Amendment, no Default or Event of Default shall exist
under the Loan Documents, as amended, and (c) agrees to pay all of the
reasonable fees and disbursements of counsel to the Administrative Agent
incurred in connection with the preparation, negotiation and closing of this
Amendment.

        17.      Each of the Borrower and the Subsidiary Guarantors (a)
reaffirms and admits the validity, enforceability and continuing effect of all
Loan Documents to which it is a party, and its obligations thereunder, and (b)
agrees and admits that as of the date

                                       11
<PAGE>

hereof it has no valid defenses to or offsets against any of its obligations to
any Credit Party under any Loan Document to which it is a party.

        18.      This Amendment may be executed in any number of separate
counterparts and all of said counterparts taken together shall be deemed to
constitute one and the same document. It shall not be necessary in making proof
of this Amendment to produce or account for more than one counterpart signed by
the party to be charged.

        19.      This Amendment shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York, without
regard to principles of conflict of laws.

        20.      The parties have caused this Amendment to be duly executed as
of the date first written above.

                                       12
<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   SALEM COMMUNICATIONS HOLDING
                                   CORPORATION

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

ATEP RADIO, INC.
BISON MEDIA, INC.
CARON BROADCASTING, INC.
CCM COMMUNICATIONS, INC.
COMMON GROUND BROADCASTING, INC.
GOLDEN GATE BROADCASTING COMPANY, INC.
INLAND RADIO, INC.
INSPIRATION MEDIA OF TEXAS, INC.
INSPIRATION MEDIA, INC.
KINGDOM DIRECT, INC.
NEW ENGLAND CONTINENTAL MEDIA, INC.
NEW INSPIRATION BROADCASTING COMPANY, INC.
OASIS RADIO, INC.
ONEPLACE, LTD.
PENNSYLVANIA MEDIA ASSOCIATES, INC.
RADIO 1210, INC.
REACH SATELLITE NETWORK, INC.
SALEM COMMUNICATIONS ACQUISITION CORPORATION
SALEM MEDIA CORPORATION
SALEM MEDIA OF COLORADO, INC.
SALEM MEDIA OF GEORGIA, INC.
SALEM MEDIA OF HAWAII, INC.
SALEM MEDIA OF KENTUCKY, INC.
SALEM MEDIA OF OHIO, INC.
SALEM MEDIA OF OREGON, INC.
SALEM MEDIA OF PENNSYLVANIA, INC.
SALEM MEDIA OF VIRGINIA, INC.
SALEM MEDIA OF TEXAS, INC.
SALEM MUSIC NETWORK, INC.
SALEM RADIO NETWORK INCORPORATED
SALEM RADIO PROPERTIES, INC.
SALEM RADIO REPRESENTATIVES, INC.
SCA LICENSE CORPORATION
SOUTH TEXAS BROADCASTING, INC.
SRN NEWS NETWORK, INC.
VISTA BROADCASTING, INC.

By:
    ---------------------------
Name:
     --------------------------
Title:
      -------------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   THE BANK OF NEW YORK,
                                   in its individual capacity
                                   and as Administrative Agent

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   THE BANK AMERICA, N.A.

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   FLEET NATIONAL BANK

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   UNION BANK OF CALIFORNIA, N.A.

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   THE BANK OF NOVA SCOTIA

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   FIRST HAWAIIAN BANK

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   SUMMIT BANK

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   CITY NATIONAL BANK

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                     SALEM COMMUNICATIONS HOLDING CORPORATION
                        AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                   ING BARINGS LLC

                                   By:
                                     --------------------------
                                   Name:
                                        -----------------------
                                   Title:
                                        -----------------------

<PAGE>

                    SALEM COMMUNICATIONS HOLDING CORPORATION
                       AMENDMENT NO. 1 TO CREDIT AGREEMENT

                                 SALEM HOLDINGS

                     SCHEDULE 8.3(d) TO THE CREDIT AGREEMENT
                          DATED AS OF NOVEMBER 7, 2000

                          LIST OF PENDING ACQUISITIONS

        1.       Acquisition of WFIA-AM, Louisville, Kentucky
                 Purchase Agreement dated December 6, 2000 between
                 Blue Chip Broadcasting, Ltd., Blue Chip Broadcasting Licenses
                 II, Ltd., SCA License Corporation and Salem Communications
                 Corporation
                 Purchase Price -- $1,750,000

        2.       Acquisition of WRBP-AM, Warren, Ohio
                 Purchase Agreement dated November 6, 2000 between
                 Star Communications, Inc. and Salem Communications Corporation
                 Purchase Price -- $675,000

        3.       Acquisition of WROL-AM, Boston, Massachusetts
                 Purchase Agreement dated December 29, 2000 between
                 Carter Broadcasting, Inc. and SCA License Corporation
                 Purchase Price -- $11,000,000

        4.       Acquisition of WXRT-AM, Chicago, Illinois
                 Purchase Agreement dated November 6, 2000 between
                 Infinity Broadcasting Corporation of Illinois, Infinity
                 Broadcasting Corporation and Salem Communications Corporation
                 Purchase Price -- $29,000,000

        5.       Acquisition of WZER-AM, Milwaukee, Wisconsin and WWTC-AM,
                 Minneapolis, Minnesota
                 Purchase Agreement dated October 16, 2000 between
                 CRN Operations, L.L.C., CRN Licenses, L.L.C. and Salem
                 Communications Corporation
                 Purchase Price -- $7,000,000

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