Document:

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                                                                    EXHIBIT 10.2

                              CONSULTING AGREEMENT

       This Consulting Agreement ("Agreement") is made and entered into this
24th day of July, 2001, by and between The Ackerley Group, Inc., hereafter
referred to as "Ackerley" or "the Company", and Denis Curley, hereafter referred
to as "Consultant."

       WHEREAS, Consultant has significant experience in a variety of areas
relevant to the Company's business, and is very familiar with the Company and
its customers; and

       WHEREAS, Consultant is retiring from employment with the Company
effective August 13, 2001 pursuant to a retirement agreement between Consultant
and the Company executed contemporaneously with this Agreement (the "Retirement
Agreement"); and

       WHEREAS, Ackerley wishes to engage Consultant to provide services to
Ackerley following his retirement in his areas of experience and expertise; and

       WHEREAS, Consultant is willing to provide services to Ackerley in
accordance herewith;

       NOW, THEREFORE, IN CONSIDERATION of the mutual promises set forth below,
Ackerley and Consultant agree as follows:

       1. Term. Ackerley agrees to engage Consultant to provide services to
Ackerley, and Consultant agrees to provide services to Ackerley, in accordance
with the terms and provisions of this Agreement, for the period commencing
August 14, 2001 and continuing until August 13, 2011 ("the Term"), unless
earlier terminated as provided below.

       2. Description of Consulting Services. Consultant will consult with and
advise Ackerley in connection with such matters and issues as may be
specifically requested of him from time to time by the President of Ackerley;
provided, however, that the Company will not request assistance that would
present a conflict of interest with Consultant's other activities. Consultant
shall promptly notify the Company if any assistance requested of him may
constitute a conflict of interest. Consultant agrees to exert his best efforts
to perform all such services as may be requested by the Company; provided,
however, that Consultant shall not be required to provide more than 40 hours of
services in any calendar month. Consultant is free to perform consulting
services or be employed by other businesses or persons provided that such
consulting or employment does not constitute a conflict of interest with the
work actually performed by Consultant under this Agreement on behalf of the
Company, and does not place Consultant in a position where he would be required
to use or disclose Confidential Information of the Company (as defined in
Section 7 below).

       3. Compensation. Consultant will be compensated by Ackerley at an annual
retainer of Two Hundred Thousand Dollars ($200,000.00) per year, payable
annually, on or before the 30th day of January of each year beginning in
January, 2002.

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       4. Independent Contractor. Consultant is an independent contractor. This
Agreement shall not create the relationship of employer and employee, a
partnership, or a joint venture. Consultant shall determine his own schedule,
and the Company shall not control or direct the details and means by which
Consultant performs his work. Consultant shall have no authority to bind the
Company in any contractual manner without the prior authorization and consent of
the Company. Although it is contemplated by the parties that because of his
unique experience and qualifications, any consulting services rendered pursuant
to this Agreement will be performed by Consultant personally, Consultant shall
determine the number of his assistants, partners or employees, if any.
Consultant shall be solely liable for the wages, fringe benefits, work schedules
and work conditions of any such assistants, partners or employees.

       5. Taxes. Consultant shall be responsible for and pay all costs of
conducting his business, including but not limited to, the expense and
responsibility for any applicable insurance or city, county, state or federal
licenses, permits, taxes or assessments of any kind. Consultant shall be
responsible for payment of his self-employment taxes including, but not limited
to, income taxes, Social Security taxes, and worker's compensation premiums.
Consultant shall indemnify the Company and hold it harmless from paying such
business costs or taxes.

       6. Termination of Agreement. This Agreement shall automatically terminate
at the end of the Term, unless extended in writing signed by both parties. This
Agreement may be terminated by either party in the event of a material breach of
this Agreement or the Retirement Agreement by the other party which is not cured
within 45 calendar days after written notice of such breach is delivered to the
party allegedly in breach, provided, however, that this Agreement may not be
terminated if such breach is not curable within such period and the breaching
party has commenced and is diligently pursuing a cure. This Agreement may be
terminated by Consultant upon thirty (30) calendar days notice to the Company.
In the event that Consultant terminates this Agreement prior to the end of its
Term, Consultant shall be entitled to compensation only for the period of time
during which he was available to provide consulting services prior to such
termination, and shall be entitled to no additional compensation under this
Agreement.

       7. Confidentiality. Consultant agrees that during the Term of this
Consulting Agreement and thereafter, he shall keep secret and retain in
strictest confidence, and shall not, without the prior written consent of the
Company, furnish, make available or disclose to any third party (except in
furtherance of the Company's business activities and for the benefit of
Ackerley) or use for the benefit of himself or any third party, any Confidential
Information. As used in this Agreement, "Confidential Information" shall mean
any information relating to the business or affairs of the Company, its
subsidiaries and affiliates, or their customers and clients, including but not
limited to information relating to financial statements, customer identities,
potential customers, employees, business strategies and information, analyses,
profit margins, or other proprietary information used by the Company in
connection with its business; provided, however, that Confidential Information
shall not include any information which is in the public domain or becomes known
in the industry through no wrongful act on the part of Consultant. Consultant
acknowledges that the Confidential Information is vital, sensitive, confidential
and proprietary to the Company. Nothing in this Agreement shall be construed to
preclude Consultant or his counsel from complying with a lawful court order or
other legal process

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requiring disclosure, written, oral or otherwise, of any Confidential
Information; provided, however, that Mr. Curley shall immediately notify the
Company in writing of any court order or other legal process which may require
disclosure of any Confidential Information, and shall fully cooperate with the
Company, consistent with his legal obligations, in the event the Company should
decide to intervene in such proceeding or process to attempt to prohibit or
limit any disclosure of the Company's Confidential Information.

                     a. Effect of Termination. If the Company or Consultant
should terminate this Agreement for any reason, then, notwithstanding such
termination, the confidentiality provisions contained in this Section 7 shall
remain in full force and effect.

                     b. Remedies Upon Disclosure. The parties agree that any
disclosure or unauthorized use of Confidential Information will cause
irreparable harm and loss, and that money damages might not be a sufficient
remedy for any breach of this Agreement. In the event of a breach or threatened
breach of this Agreement by Consultant, the Company shall be entitled to
injunctive relief or specific performance prohibiting Consultant from
disclosing, in whole or in part, the Confidential Information, or from rendering
services to any individual, business or entity to whom such information has been
disclosed or threatened to be disclosed. In addition, Ackerley shall be entitled
to all other legal remedies available, including the recovery of damages, based
upon such breach or threatened breach.

       8. Waiver of Breach. The waiver by the Company of any breach by the
Consultant of any provision of this Agreement shall not operate or be construed
as a waiver of any subsequent breach by the Consultant.

       9. Dispute Resolution. Consultant and the Company shall resolve any
claim, controversy or dispute arising out of or in connection with this
Agreement, or relating to or arising out of any other relationship or incident
between Consultant and the Company, or alleging the violation of either a
statutory or common law duty, or both, by compulsory arbitration.
Notwithstanding the provisions of this Section, the Company may seek and obtain
appropriate restraining orders and temporary or permanent injunctions in a court
proceeding without engaging in arbitration with respect to any alleged violation
of the covenants contained in Section 7. The rules and procedures for
arbitration pursuant to this Agreement are attached to this Agreement.

       10. Indemnification. The parties agree to indemnify, defend and hold each
other harmless from any claims, demands, causes of action, liabilities or
expenses, including reasonable attorneys' fees and costs, arising out of any act
or omission of the other party, its employees, agents, representatives or
affiliates. The Company shall defend and fully indemnify Consultant in
connection with any matter (including litigation, investigation or governmental
proceeding) that relates to matters with which Consultant was involved during
the term of this Agreement (the "Ackerley Matters") to the extent:

                     (1) Consultant acted in good faith;

                     (2) Consultant was acting in his official capacity on
behalf of the Company;

                     (3) Consultant reasonably believed his conduct was in the
Company's best interests;

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                     (4) Acts or omissions of Consultant are not finally
adjudged to be intentional misconduct or a knowing violation of law; and

                     (5) It is not finally adjudged that Consultant personally
received a benefit in money, property, or services to which Consultant was not
legally entitled.

       The Company shall pay for or reimburse the reasonable expenses incurred
by Consultant in defending himself in advance of final disposition of the
Ackerley Matters; provided, however that Consultant agrees to repay the advance
if it is ultimately determined that he did not meet the standard of conduct.

       11. Assignment. Neither party shall have the right to assign this
Agreement without the express written consent of the other party. In the event
of Consultant's death, the Company shall continue to perform its covenants under
this Agreement for the benefit of Consultant's estate and heirs, including
without limitation paying the amounts due under Section 3 notwithstanding
Consultant's death. In the event of (i) the sale in one or more related
transactions of all or substantially all of The Ackerley Group, Inc.'s assets,
(ii) the sale of assets of an affiliate of the Company in one or more related
transactions constituting in excess of 50% of the asset value of The Ackerley
Group, Inc., (iii) any merger or consolidation of The Ackerley Group, Inc., or a
major affiliate thereof, following which Barry and Ginger Ackerley holds
directly or indirectly less than a majority of the voting equity securities of
Ackerley or such Affiliate, or (iv) any sale or purchase of securities or other
transaction, the result of which is that Barry and Ginger Ackerley holds
directly or indirectly less than a majority of the voting equity securities of
The Ackerley Group, Inc., its major Affiliates or any surviving entity, then the
Company shall take one of the following actions, at its option: (a) require a
successor that has sufficient financial and operational capability to adequately
and faithfully satisfy the obligations called for under this Agreement for the
remaining term of this Agreement to expressly assume in writing the Company's
obligations hereunder; (b) demonstrate to Consultant's reasonable satisfaction
that Ackerley continues to have sufficient financial and operational capability
to adequately and faithfully satisfy the obligations called for under this
Agreement for the remaining term of this Agreement; (c) implement other
financial arrangements that will reasonably ensure the satisfaction of the
obligations called for under this Agreement for the remaining term of this
Agreement; or (d) immediately pay to Consultant without discount the remaining
financial obligations of the Company under this Agreement.

       12. Notice. Any demand, request, or notice which either party hereto
desires, or is required to make or deliver to the other shall be in writing and
shall be deemed delivered when personally delivered, delivered by overnight
express carrier as reflected in a signed delivery receipt, or three days after
being deposited in the United States mail, in registered or certified form,
return receipt requested, addressed as follows:

              To the Company:      The Ackerley Group, Inc.
                                   Attn: Mr. Chris Ackerley
                                   Suite 4000, 1301 5th Ave.
                                   Seattle, WA  98101

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              To Consultant;       Mr. Denis Curley
                                   2419 196th Ave. SE
                                   Sammamish, WA

       13. Entire Agreement. Although this Consulting Agreement is entered into
pursuant to and contemporaneously with a Retirement Agreement between Consultant
and the Company, this document contains the entire agreement of the parties
concerning the details of this consulting arrangement, and all promises,
representations, understandings, arrangements and prior agreements concerning
the details of the consulting arrangement are merged herein and superseded
hereby. The provisions of this Agreement may not be amended, modified, repealed,
waived, extended or discharged except by an agreement in writing signed by the
party against whom enforcement of any amendment, modification, repeal, waiver,
extension or discharge is sought.

       14. Severability. If any provision of this Agreement is invalid or
unenforceable in any jurisdiction, the other provisions herein shall be remain
in full force and effect in such jurisdiction and shall be liberally construed
in order to effectuate the purpose and intent of this Agreement, and the
invalidity or unenforceability of any provision of this Agreement in any
jurisdiction shall not affect the validity or enforceability of any such
provision in any other jurisdiction.

       15. Authorization. The Company has the corporate power and authority to
execute and deliver this Agreement and to perform its obligations hereunder and
the undersigned officer of the Company is authorized to execute this Agreement
on the Company's behalf.

       IN WITNESS WHEREOF, the parties have executed this Consulting Agreement
on or about the date set forth above.

THE ACKERLEY GROUP, INC.                DENIS CURLEY

By  /s/ Chris Ackerley                  /s/ Denis Curley
  --------------------------------      ----------------------------------------

Its President                           Date 7/24/01
   -------------------------------          ------------------------------------

Date: 7/24/01
     -----------------------------

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                        ARBITRATION RULES AND PROCEDURES

       The rules and procedures of the American Arbitration Association in
effect when any arbitration occurs shall govern the procedures of any
arbitration between the Company and Consultant ("Parties"). Any arbitration
shall take place in Seattle, Washington.

       A single neutral arbitrator shall conduct the arbitration hearing and
decide the issues submitted to arbitration. If within 21 calendar days of the
receipt by either Party of a written demand for arbitration from the other Party
the Parties cannot agree on a single neutral arbitrator, either Party may
request a panel of seven arbitrators experienced in commercial disputes from the
American Arbitration Association's Seattle, Washington office. The Parties shall
alternatively strike names from the panel until one arbitrator remains, who
shall then act as the single neutral arbitrator.

       The Parties grant the following authority and jurisdiction to the single
neutral arbitrator. The arbitrator shall determine the lawfulness under federal,
state, and local law, whether statutory or common law, or both, of acts or
omissions, or both, that produced the complaint, controversy, or dispute subject
to arbitration. In addition, the arbitrator shall decide the appropriateness of
the Parties' acts or omissions that comprise the complaint, controversy, or
dispute submitted to arbitration, given the rights and duties under this
Agreement. Further, the arbitrator may interpret and determine the rights of the
Parties under the Agreement and any other agreement to which they are both
parties.

       The single neutral arbitrator may fashion either equitable or legal
relief, or both, as limited by this provision. The arbitrator may award full
reimbursement to the prevailing Party for such out-of-pocket expenses or losses
together with any other damages to which the prevailing Party is entitled,
including, without limitation, reasonable attorneys' fees, costs and expenses of
arbitration and back pay that the evidence supports. However, the arbitrator
shall lack any authority to grant exemplary or punitive damages. Finally, the
arbitrator may assess interest on any award at the legal rate of interest due on
judgments in Washington State.

       The arbitrator's decision shall bind the Parties as a final decision
enforceable in a court of competent jurisdiction.

       The prevailing Party may confirm the arbitrator's award in a court of
competent jurisdiction. If either Party refuses to satisfy an arbitration award,
then the other Party shall have the right to receive reimbursement for all of
its costs incurred to confirm that award, including a reasonable attorneys' fee.

                                       6<PAGE>   1
                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

                               FIRST AMENDMENT TO

                   PROVISIONAL WAIVER AND STANDSTILL AGREEMENT

         THIS FIRST AMENDMENT TO PROVISIONAL WAIVER AND STANDSTILL AGREEMENT
(this "First Amendment") is made and entered into as of the 14th day of August,
2001, by the Lenders party to the Credit Agreement identified below, FIRST UNION
NATIONAL BANK, as Administrative Agent for the Lenders (the "Administrative
Agent"), FLEET BANK, N.A., as documentation agent for the Lenders (the
"Documentation Agent"), KEYBANK NATIONAL ASSOCIATION, as co-agent (the
"Co-Agent"), THE ACKERLEY GROUP, a Delaware corporation (the "Borrower") and
each of the Subsidiaries of the Borrower identified below.

                              Statement of Purpose

         Pursuant to the Provisional Waiver and Standstill Agreement dated as of
May 14, 2001 (as amended, restated, supplemented or otherwise modified, the
"Waiver Agreement"), the Borrower, each of the Subsidiaries of the Borrower
identified therein, the Administrative Agent, the Documentation Agent, the
Co-Agent and the Lenders, each a party to the Credit Agreement dated as of
January 22, 1999 (as amended by that certain First Amendment to the Credit
Agreement dated as of June 11, 1999, that certain Second Amendment to the Credit
Agreement dated as of September 10, 1999, that certain Third Amendment to the
Credit Agreement dated as of January 7, 2000, that certain Fourth Amendment to
the Credit Agreement dated as of February 11, 2000, that certain Fifth Amendment
to the Credit Agreement dated as of July 31, 2000, that certain Sixth Amendment
to the Credit Agreement dated as of December 15, 2000, that certain Seventh
Amendment to the Credit Agreement dated as of February 28, 2001, and as further
amended, restated, supplemented or otherwise modified, the "Credit Agreement"),
agreed to waive the Acknowledged Defaults provisionally until August 14, 2001,
subject to the express terms and provisions of the Waiver Agreement.

         The Borrower has requested that the Required Lenders continue to waive
through the Waiver Maturity Date (as defined below) the Acknowledged Defaults.

         The Lenders, the Administrative Agent, the Documentation Agent and the
Co-Agent are willing to continue to waive the Acknowledged Defaults
provisionally for an additional period of time in respect of the Acknowledged
Defaults during such period subject to the express terms and provisions of this
First Amendment. This First Amendment shall be deemed to be one of the Credit
Documents under and pursuant to the Credit Agreement.

         NOW THEREFORE, in consideration of the premises and the mutual
covenants contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         1. Effect of Amendment. Except as expressly amended hereby, the Waiver
Agreement, the Credit Agreement and each other Credit Document, shall be and
remain in full force and

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effect. The amendments granted in this First Amendment are specific and limited
and shall not constitute a modification, acceptance or waiver of any other
provision of the Waiver Agreement, the Credit Agreement, the other Credit
Documents or any other document or instrument entered into in connection
therewith, or a future modification, acceptance or waiver of the provisions set
forth therein. For avoidance of doubt, but in no way limiting the scope and
breadth of the previous sentences in this paragraph, each Credit Party hereby
reaffirms each of the acknowledgments and agreements made by it in Sections 1
(except as expressly amended in Paragraphs 3(b) and 3(c) below), 7 and 8 of the
Waiver Agreement as if each such acknowledgment and agreement was made as of the
date hereof.

         2. Capitalized Terms. All capitalized undefined terms used in this
First Amendment shall have the meanings assigned thereto in the Waiver
Agreement.

         3. Amendment of Waiver Agreement. The Waiver Agreement shall be hereby
amended as follows:

         a. The Statement of Purpose shall hereby be amended by deleting the
third paragraph thereto and replacing it in its entirety with the following:

                  "The Borrower has requested that the Required Lenders waive
         through the Waiver Maturity Date (as defined below) the Events of
         Default which result, absent such waiver, solely from the Borrower's
         non-compliance with Sections 7.1(a) and 7.2 of the Credit Agreement as
         of March 31, 2001 and June 30, 2001 (the "Acknowledged Defaults")."

         b. Section 1 shall hereby be amended by deleting paragraph 1(c) and
replacing it in its entirety with the following:

                  "(c) The Revolving Loans outstanding as of the date hereof are
         in an amount equal to $26,300,000 (the "Existing Loans"). There are no
         Term Loans outstanding as of the date hereof."

         c. Section 1 shall hereby be further amended by deleting paragraph 1(d)
and replacing it in its entirety with the following:

                  "(d) The Letter of Credit Exposure of the Lenders outstanding
         as of the date hereof is an in amount equal to $1,315,000 (the
         "Existing L/C Exposure," and, collectively with the Existing Loans, the
         "Existing Extensions of Credit")."

         d. Section 2 shall hereby be amended by deleting Section 2 and
replacing it in its entirety with the following:

                  "Provisional Waiver and Limited Deferral. The Administrative
         Agent, the Documentation Agent, the Co-Agent and each Lender
         respectively agree to waive the Acknowledged Defaults provisionally,
         effective as of March 31, 2001 and June 30, 2001, respectively, and to
         defer the exercise of any rights or remedies arising by reason of the
         Events of Default that have occurred solely as a result of the
         occurrence of the

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         Acknowledged Defaults until that date (as may be extended, the "Waiver
         Maturity Date") which is the earliest to occur of: (a) September 15,
         2001; (b) the date of the occurrence of any Event of Default other than
         the Acknowledged Defaults; (c) the date on which any material provision
         of the Credit Agreement or any other Credit Document shall for any
         reason cease to be valid and binding on the Borrower or any other
         Credit Party; (d) Credit Suisse First Boston's abandonment or
         withdrawal from its commitments to the Borrower for a takeout facility
         in the amount of at least $120,000,000 consisting of at least
         $20,000,000 on the Revolving Loans and at least $100,000,000 on the
         Term Loans (the "Qualified Takeout Facility"); (e) the closing of any
         Qualified Takeout Facility; or (f) the date on which any breach of any
         of the further conditions or agreements provided in the Waiver
         Agreement as amended by this First Amendment shall occur, it being
         agreed that the breach of any such further condition or agreement
         shall, at the option of Required Lenders, by notice in writing from the
         Administrative Agent (unless the Administrative Agent is prohibited by
         applicable law from providing such notice) to the Borrower constitute a
         Default and Event of Default under the Credit Agreement."

         e. Section 3 shall hereby be amended by deleting paragraph 3(b) and
replacing it in its entirety with the following:

                  "(b) Notwithstanding paragraph 3(a) above, any obligation of
         the Lenders to make additional Loans requested by the Borrower
         (including the Revolving Loans) shall be at the sole and absolute
         discretion of, and on terms and conditions satisfactory to, the
         Administrative Agent and Required Lenders."

         f. Section 3 shall hereby be further amended by deleting paragraph 3(d)
and replacing it in its entirety with the following:

                  "(d) From and after August 14, 2001, all LIBOR Loans shall
         bear interest at a rate equal to the LIBOR Rate plus 5.50% and all Base
         Rate Loans shall bear interest at a rate equal to the Base Rate plus
         4.50%."

         g. Section 4 shall hereby be amended by deleting subparagraph 4(b)(i)
in its entirety and replacing it with the following:

                  "(i) subject to receipt of a cash flow projection for the
         Borrower and its Subsidiaries for at least a 3-month period beginning
         August 14, 2001, which shall be attached hereto as Exhibit "A" and
         which shall be in form and substance satisfactory to the Administrative
         Agent and Required Lenders (the "New Cash Flow Projection"), commencing
         on August 14, 2001 and thereafter no later than the second business day
         following each bi-weekly period referenced in the New Cash Flow
         Projection, (A) a subsequent cash flow projection in form and substance
         satisfactory to the Administrative Agent and Required Lenders for the
         Borrower and its Subsidiaries prepared on a rolling basis for at least
         the next succeeding 3-month period (the "Cash Flow Projection") and (B)
         a report in form and substance satisfactory to the Administrative Agent
         and Required Lenders comparing actual cash flow for the bi-weekly
         period referenced in the New Cash

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         Flow Projection most recently ended to the projected cash flow for such
         period set forth in the preceding Cash Flow Projection;"

         h. Section 4 shall hereby be further amended by deleting subparagraph
4(b)(ii) in its entirety and replacing it with the following:

                  "(ii) commencing on August 31, 2001 for the month of July and
         thereafter no later than the 15th calendar day of each subsequent
         month, a financial report with narrative in the form and substance
         satisfactory to the Administrative Agent and Required Lenders;"

         i. Section 4 shall hereby be further amended by adding the following
clause (iv) to the end of paragraph 4(b):

                  "(iv) no later than Friday of each week commencing with August
         17, 2001, a written report shall be delivered to the Administrative
         Agent (A) summarizing the status of the Qualified Takeout Facility,
         including without limitation, any commitments in respect of such
         facility and (B) attaching copies of such commitments."

         4. Conditions. The effectiveness of this First Amendment shall be
conditioned upon the following:

         a. The following documents shall have been duly authorized and executed
by the parties thereto, shall be in full force and effect and no default shall
exist thereunder, and the Borrower shall have delivered original counterparts
thereof to the Agent:

                  (i) this First Amendment, duly executed and delivered by the
         Credit Parties, the Administrative Agent, the Documentation Agent, the
         Co-Agent, and the Lenders constituting Required Lenders;

                  (ii) a certificate of the secretary or assistant secretary of
         each Credit Party certifying as to the incumbency and genuineness of
         the signature of each officer of such Credit Party executing Credit
         Documents to which it is a party and certifying that: (A) the
         certificate or articles of incorporation of such Credit Party have not
         been amended, modified or repealed since the date delivered to the
         Administrative Agent, (B) the bylaws of such Credit Party have not been
         amended, modified or repealed since the date delivered to the
         Administrative Agent, (C) attached thereto is true, correct and
         complete copy of resolutions duly adopted by the Board of Directors of
         such Credit Party authorizing the execution and delivery of this First
         Amendment, and (D) attached thereto is a true, correct and complete
         copy of the certificate of good standing/existence of such Credit Party
         under the laws of its jurisdiction of organization; and

                  (iii) such other documents, certificates and instruments as
         the Administrative Agent reasonably requests.

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         b. To the extent that the Borrower has received an invoice for such
fees and expenses, the Borrower shall have paid all outstanding professional
fees and expenses, as provided in the Credit Agreement, through the date of this
First Amendment.

         c. Concurrently with the execution of this First Amendment, the
Borrower shall have paid to the Administrative Agent, for distribution to the
Lenders executing and delivering this First Amendment, on a pro rata basis
(based upon the ratio of the Commitment of each such consenting Lender to the
total Commitments of all such consenting Lenders), a fee in an amount equal to
12.50 basis points of the total Commitments of all such consenting Lenders.

         5. Limited Effect of First Amendment. Except as expressly provided in
this First Amendment, the Credit Agreement, and each other Credit Document shall
continue to be, and shall remain, in full force and effect. This First Amendment
shall not be deemed or otherwise construed: (i) to be a waiver of, or consent to
or a modification or amendment of, any other term or condition of the Credit
Agreement or any other Credit Document; (ii) to prejudice any other right or
rights that the Administrative Agent, the Documentation Agent, the Co-Agent or
any Lender, or any of them, may now have or may have in the future under or in
connection with the Credit Agreement or any other Credit Document, as such
documents may be amended, restated or otherwise modified from time to time;
(iii) to be a commitment or any other undertaking or expression of any
willingness to engage in any further discussion with any Credit Party or any
other Person with respect to any waiver, amendment, modification or any other
change to the Credit Agreement or any other Credit Document or any rights or
remedies arising in favor of the Administrative Agent, the Documentation Agent,
the Co-Agent and the Lenders, or any of them, under or with respect to any such
documents; or (iv) to be a waiver of, or consent to or a modification or
amendment of, any other term or condition of any other agreement by and among
any Credit Party, on the one hand, and the Administrative Agent, the
Documentation Agent, the Co-Agent or any Lender, on the other hand. Neither the
requirements of good faith and fair dealing nor any other theory, concept or
argument shall require any Lender to impart upon any Credit Party any further or
greater benefits, to suffer any prejudice or impairment of any kind whatsoever,
or to tolerate any noncompliance with this First Amendment and any other Credit
Document, because each Lender has bargained for and given valuable consideration
for this First Amendment and the other Credit Documents and its creation of
express, explicit and objective limits of what benefits each Lender is willing
to provide to the Credit Parties, and what, in return, the Credit Parties are
required to provide to each Lender. This First Amendment and the other Credit
Documents provide a clear statement of each Lender's requirements and
obligations and creates an agreed upon standard of performance upon which each
Lender is entitled to rely in exercising and enforcing its respective remedies
under the Credit Documents.

         6. Release. Each Credit Party, on behalf of itself and any Person
claiming by, through, or under such Credit Party (collectively, the "Credit
Party Group"), acknowledges that it has no claim, counterclaim, setoff, action
or cause of action of any kind or nature whatsoever ("Claims") against all or
any of the Administrative Agent, the Documentation Agent, the Co-Agent, the
Lenders or any of their respective directors, officers, employees, agents,
attorneys, financial advisors, accountants, legal representatives, successors
and assigns (the Administrative Agent, the Documentation Agent, the Co-Agent,
the Lenders and their respective directors, officers, employees, agents,
attorneys, financial advisors, accountants, legal representatives, successors

                                       5
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and assigns are jointly and severally referred to as the "Lender Group"), that
directly or indirectly arise out of or are based upon or in any manner connected
with any "Prior Event" (as defined below), and each Credit Party, on behalf of
itself and all the other members of the Credit Party Group, hereby releases the
Lender Group from any liability whatsoever should any Claims nonetheless exist.
As used herein the term "Prior Event" means any transaction, event,
circumstances, action, failure to act or occurrence of any sort or type, whether
known or unknown, which occurred, existed, was taken, permitted or begun prior
to the execution of this First Amendment and occurred, existed, was taken,
permitted or begun in accordance with, pursuant to or by virtue of any terms of
this First Amendment, the transactions referred to herein, any Credit Document
or oral or written agreement relating to any of the foregoing, including without
limitation any approval or acceptance given or denied. This section shall
survive the termination of this First Amendment and shall remain in full force
and effect even if any of the conditions set forth in paragraphs 4(a)(ii)-(iii),
4(b) and 4(c) in the this First Amendment are not satisfied.

         7. Representations and Warranties. By its execution hereof, each of the
Credit Parties hereby certifies that each of the representations and warranties
set forth in the Credit Agreement and the other Credit Documents in respect of
such Credit Party is true and correct as of the date hereof as if fully set
forth herein, (other than as a result of the occurrence of the Acknowledged
Defaults and except to the extent such representation or warranty is expressly
stated to have been made as of a specified date, in which case such
representation or warranty shall be true and correct as of such specified date),
and that as of the date hereof no Default or Event of Default (other than Events
of Default occurring as a result of the occurrence of the Acknowledged Defaults)
has occurred and is continuing. Additionally, each Credit Party represents and
warrants that since [March 31, 2001], no event which has had, or could
reasonably be expected to have, a material adverse effect has occurred, except
as previously disclosed in writing to the Administrative Agent.

         8. Reversal of Payments. To the extent any Credit Party makes a payment
or payments to the Administrative Agent for the ratable benefit of Lenders
pursuant to the Waiver Agreement, as amended herein, the Revolving Notes or any
other Credit Document which payments or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then, to
the extent of such payment or proceeds repaid, the Obligations or part thereof
intended to be satisfied shall be revived and continued in full force and effect
as if such payment or proceeds had not been received by the Administrative
Agent.

         9. GOVERNING LAW; CONSENT TO JURISDICTION; ARBITRATION. THIS AGREEMENT
AND THE OTHER CREDIT DOCUMENTS HAVE BEEN EXECUTED, DELIVERED AND ACCEPTED IN,
AND SHALL BE DEEMED TO HAVE BEEN MADE IN, NORTH CAROLINA AND SHALL BE GOVERNED
BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH
CAROLINA (WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF); PROVIDED
THAT EACH LETTER OF CREDIT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OR RULES

                                       6
<PAGE>   7
DESIGNATED IN SUCH LETTER OF CREDIT OR, IF NO SUCH LAWS OR RULES ARE DESIGNATED,
THE UNIFORM CUSTOMS AND PRACTICES FOR DOCUMENTARY CREDITS, INTERNATIONAL CHAMBER
OF COMMERCE, AS IN EFFECT FROM TIME TO TIME (THE "UNIFORM CUSTOMS"), OR, IN
RESPECT OF STANDBY LETTERS OF CREDIT, THE INTERNATIONAL STANDBY PRACTICE RULES
("ISP98"), AND, AS TO MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS OR ISP98, THE
LAWS OF STATE OF NORTH CAROLINA (WITHOUT REGARD TO THE CONFLICTS OF LAW
PROVISIONS THEREOF). EACH CREDIT PARTY HEREBY CONSENTS TO THE NONEXCLUSIVE
JURISDICTION OF ANY STATE COURT WITHIN MECKLENBURG COUNTY, NORTH CAROLINA OR ANY
FEDERAL COURT LOCATED WITHIN THE WESTERN DISTRICT OF THE STATE OF NORTH CAROLINA
FOR ANY PROCEEDING INSTITUTED HEREUNDER OR UNDER ANY OF THE OTHER CREDIT
DOCUMENTS, OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER CREDIT DOCUMENTS, OR ANY PROCEEDING TO WHICH THE ADMINISTRATIVE AGENT OR
ANY LENDER OR ANY CREDIT PARTY IS A PARTY, INCLUDING ANY ACTIONS BASED UPON,
ARISING OUT OF, OR IN CONNECTION WITH ANY COURSE OF CONDUCT, COURSE OF DEALING ,
STATEMENT (WHETHER ORAL OR WRITTEN) OR ACTIONS OR THE ADMINISTRATIVE AGENT OR
ANY LENDER OR ANY CREDIT PARTY. EACH CREDIT PARTY IRREVOCABLY AGREES TO BE BOUND
(SUBJECT TO ANY AVAILABLE RIGHT OF APPEAL) BY ANY JUDGMENT RENDERED OR RELIEF
GRANTED THEREBY AND FURTHER WAIVES ANY OBJECTION THAT IT MAY HAVE BASED ON LACK
OF JURISDICTION OR IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY
SUCH PROCEEDING. EACH CREDIT PARTY CONSENTS THAT ALL SERVICE OF PROCESS BE MADE
BY REGISTERED OR CERTIFIED MAIL DIRECTED TO IT AT ITS ADDRESS SET FORTH IN THE
CREDIT AGREEMENT, AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE
EARLIER OF ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE UNITED
STATES MAILS, PROPER POSTAGE PREPAID AND PROPERLY ADDRESSED. NOTHING IN THIS
SECTION SHALL AFFECT THE RIGHT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER
TO BRING ANY ACTION OR PROCEEDING AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY
JURISDICTION. THE PROVISIONS OF SECTION 11.4 OF THE CREDIT AGREEMENT SHALL BE
APPLICABLE TO THIS FIRST AMENDMENT.

         10. Headings. The captions in this First Amendment are for convenience
of reference only and shall not define or limit the provisions hereof.

         11. Counterparts. This First Amendment may be executed in several
counterparts and by each party on a separate counterpart, each of which when
executed and delivered shall be an original, and all of which together shall
constitute one instrument. In proving this First Amendment, it shall not be
necessary to produce or account for more than one such counterpart signed by the
party against whom enforcement is sought.

                                       7
<PAGE>   8
         12. Entire Agreement, Etc. The Credit Documents and any other documents
executed in connection herewith or therewith express the entire understanding of
the parties with respect to the transactions contemplated hereby.

         13. No Third Party Beneficiaries. This First Amendment does not and
shall not be construed to confer any rights or remedies upon any Person other
than the parties to this First Amendment and their respective successors and
permitted assigns.

         14. Severability. The provisions of this First Amendment are severable
and if any one clause or provision hereof shall be held invalid or unenforceable
in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such clause or provision
in any other jurisdiction, or any other clause or provision of this First
Amendment in any jurisdiction.

         15. Survival of Obligations. All covenants, agreements and other
obligations of the Credit Parties under this First Amendment which do not
terminate on the Waiver Maturity Date pursuant to their express terms shall
survive the occurrence of the Waiver Maturity Date and shall thereafter be
enforceable against the Credit Parties according to their terms.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                       8
<PAGE>   9
         IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to be duly executed as of the date and year first above written.

                                       BORROWER:

                                       THE ACKERLEY GROUP, a Delaware
                                       corporation

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                       OTHER CREDIT PARTIES/GUARANTORS:

                                       ACKERLEY MEDIA GROUP, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       ACKERLEY COMMUNICATIONS OF
                                       MASSACHUSETTS, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       KVOS TV, LTD.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

<PAGE>   10
                                       CENTRAL NY NEWS, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       AK FLORIDA OUTDOOR, INC.

                                       By: /s/
                                           -------------------------------------
                                            Name:  Kevin E. Hylton
                                            Title:    Assistant Secretary

                                       TC AVIATION, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       ACKERLEY INTERACTIVE MEDIA, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary
<PAGE>   11

                                       ACKERLEY BROADCASTING FRESNO, LLC

                                       By:  Ackerley Media Group, Inc.
                                       Its: Sole Manager

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       AK MOBILE TELEVISION, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       ACKERLEY VENTURES, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       SSI, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

                                       FULL HOUSE SPORTS AND ENTERTAINMENT, INC.

                                       By:
                                          --------------------------------------
                                          Name:  Kevin E. Hylton
                                          Title: Assistant Secretary

<PAGE>   12
                                       ACKERLEY SEATTLE STORM, INC.

                                       By: /s/
                                           -------------------------------------
                                           Name:  Kevin E. Hylton
                                           Title: Assistant Secretary

<PAGE>   13
                                       LENDERS:

                                       FIRST UNION NATIONAL BANK,
                                       as Administrative Agent and Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

<PAGE>   14
                                       FLEET BANK, N.A. as Documentation Agent
                                       and Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   15
                                       KEYBANK NATIONAL ASSOCIATION, as Co-Agent
                                       and Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

<PAGE>   16
                                       US BANK NATIONAL ASSOCIATION, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   17
                                       BANK OF AMERICA NATIONAL TRUST AND
                                       SAVINGS ASSOCIATION, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   18
                                       THE BANK OF NOVA SCOTIA, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   19
                                       DRESDNER BANK AG, NEW YORK & GRAND CAYMAN
                                       BRANCHES, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   20
                                       WASHINGTON MUTUAL BANK, d/b/a WESTERN
                                       BANK, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   21
                                       BNP PARIBAS, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   22
                                       CITIZENS BANK, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   23
                                       COMPAGNIE FINANCIERE, f/k/a CREDIT
                                       INDUSTRIEL ET COMMMERCIAL, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   24
                                       FIRST HAWAIIAN BANK, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   25
                                       NATEXIS BANQUE POPULAIRES, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   26
                                       MICHIGAN NATIONAL BANK, as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   27
                                       THE CIT GROUP/EQUIPMENT FINANCING, INC.,
                                       as Lender

                                       By: /s/
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
<PAGE>   28
                                                                 EXECUTION COPY
                                    EXHIBIT A

                       FORM OF CASH FLOW PROJECTION REPORT

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