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Exhibit 10.15 

 
 

ASSET PURCHASE AGREEMENT    
  

        THIS ASSET PURCHASE AGREEMENT is made as of the 10th day of October, 2001, by and between San Joaquin Radio Company, LLC (the "Seller") and Hispanic Broadcasting
Corporation (the "Purchaser"). 

W I T N E S S E T H:

        WHEREAS,
Seller is the licensee of radio station KAJZ(FM) (the "Station"), licensed to Merced, California, authorized by the Federal Communications Commission (the "FCC") to operate at
107.7 MHz, and Seller owns the assets which are used in the operation of the Station; and 

        WHEREAS,
on August 17, 2000, the FCC granted to Seller a construction permit (BPH- 20000515AD) to change the Station's community of license to North Fork, California
and operate on Channel 300B1 (107.9MHz) and to upgrade the Station's classification to "B-1", and to change the Station's transmitter site (collectively the "Construction Permit"), and
such grant has become a final order; and 

        WHEREAS,
the Seller desires to sell to Purchaser, and Purchaser desires to purchase from the Seller, certain of the radio station properties and assets relating to the Station as
described herein under the terms and conditions herein set forth; 

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

	1.
	PURCHASE AND SALE OF ASSETS.

        1.1    Purchase and Sale of Assets.    Subject to the conditions set forth in this Agreement, at the Closing (as
defined hereinafter), the Seller shall assign, transfer, convey and deliver to Purchaser, and Purchaser
shall purchase from the Seller, all right, title and interest in and to the following assets relating to the Station (the "Purchased Assets"), free and clear of all liens, security interests, charges,
encumbrances and rights of others (other than liens and charges for which a proration adjustment is made pursuant to Section 15.2 hereof): 

        (a)  All
licenses, construction permits or authorizations issued by or pending before the FCC or any other governmental authority for use in the operation of the Station that
are set forth on Schedule 1.1(a) attached hereto, together with any and all renewals, extensions and modifications thereof (the "Governmental Licenses"); 

        (b)  Subject
to Section 1.2 hereof, the leasehold interest at the real property located at the Goat Mountain Tower Site described in Schedule 1.3(a) hereto, or
at the Smiley Mt. Site described in Schedule 1.3(b) hereto, as the case may be, together with all broadcast towers and other improvements, fixtures and structures thereon and all rights and
appurtenances pertaining thereto, together with replacements thereof and additions thereto made between the date hereof and the Closing (the "Transmitter Site"); 

        (c)  All
antennas, main and back-up transmitters and generators, STL's and other tangible personal property located, or otherwise intended for use,
at the Transmitter Site; 

        (d)  the
"KAJZ" call letters and internet domain names of the Station; and 

        (e)  Unless
as may be otherwise required by law, the books and records related to the Purchased Assets, such as property tax records, logs, all materials maintained in the
FCC public file relating to the Station, technical data, political advertising records and all other records, correspondence with and documents pertaining to governmental authorities and similar third
parties (the "Business Records"). 

The
foregoing notwithstanding, in no event shall the Purchased Assets be deemed to include (i) the cash and cash equivalents of the Seller or the Station (except for any normal and customary
deposits with respect to the Purchased Assets), (ii) any accounts receivable, notes receivable or other receivables 

 

of the Seller (including tax refunds), (iii) any studio or office equipment and fixtures, vehicles, promotional materials, tapes and record libraries and similar items in respect of the
Station, (iv) the Seller's corporate seal, minute books, charter documents, corporate stock record books and other books
and records that pertain to the organization of Seller, (v) securities of any kind owned by Seller, (vi) insurance contracts or proceeds thereof or (vii) claims arising out of
acts occurring before the Closing Date. 

        1.2    Transmitter Site Lease.    

        (a)  As
promptly as practicable after the date hereof, Seller will present for Purchaser's approval a proposed lease for the Transmitter Site (the "Transmitter Site Lease").
The Transmitter Site Lease shall provide that it will be assignable to a purchaser of the Station without any increase in cost and shall otherwise be in form acceptable to Purchaser. 

        (b)  At
the Closing, the Purchaser shall assume the specified contractual obligation of the Station for periods on and after the Closing under the Transmitter Site Lease (the
"Assumed Contract"), and the Purchaser agrees to pay and perform the Assumed Contract after the Closing Date. In no event shall Purchaser be required to assume obligations under more than one
Transmitter Site Lease. Accordingly, if the Closing occurs prior to the completion of broadcast facilities at the Smiley Mt. Site (as described in Section 1.3 herein), Seller shall reimburse
Purchaser for any termination costs associated with the existing Transmitter Site Lease as a condition precedent to Purchaser's assumption of any new Transmitter Site Lease. Except as specifically set
forth in the preceding sentences, Purchaser does not assume and shall in no event be liable for any debt, obligation, responsibility or liability of the Station or Seller, including without
limitation, employee obligations, taxes, accounts payable and time sales and barter obligations of the Station. 

        1.3    Construction Permit Modification.    At any time prior to the Closing, Seller may elect to file with the FCC,
at Seller's sole expense, an application to modify Seller's existing Construction Permit, such modification application to be in form reasonably acceptable to Purchaser (the "CP Modification"), to
allow the operation of the Station at the coordinates, and meeting the other operational criteria, listed on Schedule 1.3(b) hereto (the "Smiley Mt. Site"). If the FCC grants the CP
Modification, Seller will as promptly as practicable and at its sole expense construct broadcast facilities in accordance with the terms of the CP Modification and, to the extent that such facilities
are completed prior to the Closing Date, commence broadcast operations with such newly constructed facilities. 

	2.
	CONSIDERATION; CLOSING.

        2.1    Purchase Price.    The consideration to be received by the Seller in exchange for the Purchased Assets shall be
$5,000,000; provided, however, that such consideration shall be increased by $500,000 if, either as of the Closing Date or at any time within 24 months thereafter, the Station is broadcasting
at the Smiley Mt. Site in accordance with the terms of the CP Modification and the terms of this Agreement; provided, however, that any costs incurred by Purchaser in relocating broadcast operations
to the Smiley Mt. Site, to the extent not reimbursed by Seller, shall be deducted from such $500,000 additional consideration. 

        2.2    Time of Closing.    

        (a)  A
closing (the "Closing") for the sale and purchase of the Purchased Assets shall be held at the offices of Seller's counsel and occur on such date (the "Closing Date")
that is the 60th day after the date on which the FCC Order (defined below) has become a Final Order (defined below). The Closing shall be deemed to be effective as of 12:01 a.m. on the Closing
Date. Purchaser shall have the right to accelerate the Closing Date to any date after the occurrence of the FCC Order and will use its reasonable best efforts to do so; provided, however, that
Purchaser shall not be required to expend additional funds or relinquish any material rights granted hereunder in using such efforts. 

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        (b)  In
order to consummate the transfer of the Purchased Assets, Seller and Purchaser agree to use their reasonable best efforts to file, within three business days after
the date hereof, an assignment of license application (the "FCC Application") requesting FCC consent to the assignment from the Seller to HBC License Corporation (a subsidiary of Purchaser) of all
Governmental Licenses relating to the operation of the Station. The parties agree that the FCC Application will be prosecuted with best reasonable efforts, in good faith and with due diligence. The
parties agree to use their reasonable best efforts to file additional information or amendments requested by the FCC orally or in writing within five business days after such request and, in any
event, to commence preparation of such additional information or amendments immediately upon request and to complete and file the same with the FCC as rapidly as practical. Each party will be solely
responsible for the expenses incurred by it in the preparation, filing and prosecution of the FCC Application (it being understood that the parties will bear equally the FCC filing fee). 

        (c)  As
used herein, the term "FCC Order" shall mean that the FCC staff has granted or given its consent, without any condition materially adverse to Purchaser or Seller, to
both (i) the assignment of the Governmental Licenses and (ii) the Construction Permit (or, in the event that Seller elects to make the filing described in Section 1.3 above, the
CP Modification); and the term "Final Order" shall mean that the FCC Order shall have become final, that the time period for filing any protests, requests for stay, reconsideration by the FCC,
petitions for rehearing or appeal of such order shall have expired, and that no protest, request for stay, reconsideration by the FCC, petition for rehearing or appeal of such order shall be pending.
In each case, the date of the FCC Order for purposes of determining the commencement of the 60 day period prior to Closing, in accordance with Section 2.2(a), shall be the later of the
date of the FCC Order with respect to the Governmental Licenses or the Construction Permit. 

        2.3    Closing Procedure.    At the Closing, the Seller shall deliver to Purchaser such bills of sale, instruments of
assignment, transfer and conveyance and similar documents as Purchaser shall reasonably request. Against such delivery, Purchaser shall (i) issue and deliver to Seller the purchase price in
accordance with Section 2.1 above and (ii) execute and deliver the assumption agreement with respect to the Assumed Contract as are contemplated by Section 1.2 hereof. Each party
will cause to be prepared,
executed and delivered all other documents required to be delivered by such party pursuant to this Agreement and all other appropriate and customary documents as another party or its counsel may
reasonably request for the purpose of consummating the transactions contemplated by this Agreement. All actions taken at the Closing shall be deemed to have been taken simultaneously at the time the
last of any such actions is taken or completed. 

        2.4    Allocation of Purchase Price.    The Purchase Price shall be allocated among the Purchased Assets in a manner
as mutually agreed between the parties based upon an appraisal prepared by Bond & Pecaro (whose fees shall be paid by Purchaser). Seller and Purchaser agree to use the allocations determined
pursuant to this Section 2.4 for all tax purposes, including without limitation, those matters subject to Section 1060 of the Internal Revenue Code of 1986, as amended. 

        2.5    Escrow Deposit.    Concurrently with the execution and delivery of this Agreement, Purchaser shall make a
deposit of $250,000 in cash (the "Deposit") with Patrick Communications, L.L.C. (the "Escrow Agent") pursuant to the Escrow Agreement (the "Escrow Agreement"), in the form attached hereto as
Exhibit A. 

	3.
	REPRESENTATIONS AND WARRANTIES OF THE SELLER.

        The
Seller hereby represents and warrants to the Purchaser, as follows: 

        3.1    Organization; Good Standing.    The Seller is a limited liability company, duly organized, validly existing and
in good standing under the laws of the state of [California], and has all requisite corporate power and authority to own and lease its properties and carry on its business as
currently conducted. 

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        3.2    Due Authorization.    Subject to the FCC Order and the Final Order, the Seller has full power and authority to
enter into and perform this Agreement and to carry out the transactions contemplated hereby. The Seller has taken all necessary corporate action to approve the execution and delivery of this Agreement
and the transactions contemplated hereby. This Agreement constitutes the legal, valid and binding obligation of the Seller, enforceable against it in accordance with its terms, except as may be
limited by the availability of equitable remedies or by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally. 

        3.3    Execution and Delivery.    Neither the execution and delivery by the Seller of this Agreement nor the
consummation by it of the transactions contemplated hereby will: (i) conflict with or result in a breach of the articles of organization or operating agreement of Seller, (ii) subject to
the FCC Order and Final
Order, violate any statute, law, rule or regulation or any order, writ, injunction or decree of any court or governmental authority, which violation, either individually or in the aggregate, might
reasonably be expected to have a material adverse effect on Purchaser's ownership of the Purchased Assets; or (iii) violate or conflict with or constitute a default under (or give rise to any
right of termination, cancellation or acceleration under), or result in the creation of any lien on any of the Purchased Assets pursuant to, any material agreement, indenture, mortgage or other
instrument to which the Seller is a party or by which it or its assets may be bound or affected. 

        3.4    Governmental Consents.    No approval, authorization, consent, order or other action of, or filing with, any
governmental authority or administrative agency is required in connection with the execution and delivery by the Seller of this Agreement or the consummation of the transactions contemplated hereby or
thereby, other than those of the FCC. 

        3.5    Title to Personal Property Assets.    Except for leased property, the Seller is the sole and exclusive legal
owner of all right, title and interest in, and has good and marketable title to, all of the Purchased Assets constituting personal property, free and clear of liens, claims and encumbrances except
(i) liens for taxes not yet payable and (ii) the Assumed Contract. 

        3.6    Transmitter Site.    

        (a)  As
of the Closing, Seller will have valid, binding and enforceable leasehold interests, which are (except as disclosed in the Assumed Contract) free and clear of liens,
claims, encumbrances, subleases or other restrictions, in and to the Transmitter Site. 

        (b)  Seller
has not received any notice of, and has no knowledge of, any material violation of any zoning, building, health, fire, water use or similar statute, ordinance,
law, regulation or code in connection with the Transmitter Site. To the knowledge of Seller, no fact or condition exists which would result in the termination or impairment of access of the Station to
the Transmitter Site or discontinuation of necessary sewer, water, electrical, gas, telephone or other utilities or services. 

        (c)  To
Seller's knowledge, (i) no hazardous or toxic material (as hereinafter defined) exists in any structure located on, or exists on or under the surface of, the
Transmitter Site which is, in any case, in material violation by Seller of applicable environmental law; (ii) no portion of the Transmitter Site has been used by Seller as a landfill or for
storage or landfill of hazardous or toxic materials; and (iii) there are not any underground storage tanks that have been installed by Seller at or removed by Seller from the Transmitter Site.
For purposes of this Section, "hazardous or toxic material" shall mean waste, substance, materials, smoke, gas or particulate matter designated as hazardous, toxic or dangerous under any environmental
law. For purposes of this Section, "environmental law" shall include the Comprehensive Environmental Response Compensation and Liability Act, the Clean Air Act, the Clean Water Act and any other
applicable federal, state or local environmental, health or safety law, rule or regulation relating to or imposing liability or standards concerning or in connection with hazardous, toxic or dangerous
waste, substance, materials, smoke, gas or particulate matter. 

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        3.7    Condition of Assets.    All of the Purchased Assets viewed as a whole and not on an asset by asset basis are in
good condition and working order, ordinary wear and tear excepted, and are suitable for the uses for which intended, free from any known defects except such minor defects that do not interfere with
the continued use thereof. 

        3.8    Governmental Licenses.    Schedule 1.1(a) lists and accurately describes all of the Governmental
Licenses necessary for the lawful ownership and operation of the Station and the conduct of their businesses, except where the failure to hold such Governmental License would not have a material
adverse effect on the Station. The Seller has furnished to Purchaser true and accurate copies of all of the Governmental Licenses. Each such Governmental License is in full force and effect and is
valid under applicable federal, state and local laws; the Station is being operated in compliance in all material respects with the Communications Act of 1934, as amended, and all rules, regulations
and policies of the FCC; and to the knowledge of the Seller, no event has occurred which (whether with or without notice, lapse of time or the happening or occurrence of any other event) is reasonably
likely to result in the revocation or termination of any Governmental License or the imposition of any restriction of such a nature as might adversely affect the ownership or operation of the Station
as now conducted, except for proceedings of a legislative or rule-making nature intended to affect the broadcasting industry generally. The Station, its physical facilities, electrical and
mechanical systems and transmitting and studio equipment are being operated in all material respects in accordance with the specifications of the Governmental Licenses. The Governmental Licenses are
unimpaired by any act or omission of the Seller or any of the Seller's officers, directors or employees and the Seller has fulfilled and performed all of its obligations with respect to the
Governmental Licenses and has full power and authority thereunder. No application, action or proceeding is pending for the renewal or modification of any of the Governmental Licenses. No event has
occurred which, individually or in the aggregate, and with or without the giving of notice or the lapse of time or both, would constitute ground for revocation thereof and would have a materially
adverse effect on the business or financial condition of the Station. 

        3.9    Reports.    The Seller has duly filed all reports required to be filed by law or applicable rule, regulation,
order, writ or decree of any court, governmental commission, body or instrumentality and has made payment of all charges and other payments, if any, shown by such reports to be due and payable, except
where the failure to so file or make payment would not have a material adverse effect upon the operations of the Station. All reports required to be filed by the Seller with the FCC with respect to
the Station have been filed, except where the failure to so file would not materially and adversely affect the business, operations, properties, assets or conditions (financial or otherwise) of the
Station or which challenges the validity or propriety of any of the transactions contemplated by this Agreement. Such reports and disclosures are complete and accurate in all material respects. 

        3.10    Taxes.    All tax reports and returns required to be filed by or relating to the Purchased Assets have been
filed with the appropriate federal, state and local governmental agencies, and there have been paid all taxes, penalties, interest, deficiencies, assessments or other charges due with respect to such
taxes, as reflected on the filed returns or claimed to be due by such federal, state or local taxing
authorities (other than taxes, deficiencies, assessments or claims which are being contested in good faith and which in the aggregate are not material); (ii) Seller has not received any written
notice of any examinations or audits pending or unresolved examinations or audit issues with respect to the Seller's federal, state or local tax returns that could adversely affect the Purchased
Assets; (iii) all additional taxes, if any, assessed as a result of such examinations or audits have been paid; and (iv) to Seller's knowledge, there are no pending claims or proceedings
relating to, or asserted for, taxes, penalties, interest, deficiencies or assessments against the Purchased Assets. 

        3.11    Litigation.    There is no order of any court, governmental agency or authority and no action, suit,
proceeding or investigation, judicial, administrative or otherwise that is pending or, to Seller's knowledge, threatened against or affecting the Station which, if adversely determined, might
materially 

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and adversely affect the business, operations, properties, assets or conditions (financial or otherwise) of the Station or which challenges the validity or propriety of any of the transactions
contemplated by this Agreement. 

        3.12    Contracts and Agreements.    The Station is not in default with respect to the Assumed Contract, and, as of
the Closing Date, the Station will have paid all sums and performed all obligations under the Assumed Contract which are required to be paid or performed prior to the Closing Date. 

        3.13    Business Records.    The Seller has, and after the Closing, Purchaser will have, the right to use the Business
Records included in the Purchased Assets, free and clear of any royalty or other payment obligations. 

        3.14    Third Party Consents.    The only consents from any person or entity which are required to be obtained by
Seller in connection with the execution and delivery by Seller of this Agreement and the consummation of the transactions contemplated hereby are set forth on Schedule 3.14 (the "Third Party
Consents"), and Seller anticipates being able to obtain all Third Party Consents as promptly as practicable after the execution and delivery of this Agreement. 

        3.15    Finders and Brokers.    Except for Patrick Communications, L.L.C. (the fees and expenses of which will be
borne solely by Seller), no person has as a result of any agreement entered into by the Seller any valid claim against any of the parties hereto for a brokerage commission, finder's fee or other like
payment. 

	4.
	REPRESENTATIONS AND WARRANTIES OF PURCHASER.

        Purchaser
hereby represents and warrants to the Seller as follows: 

        4.1    Organization and Good Standing.    Purchaser is a corporation duly organized, validly existing and in good
standing under the laws of Delaware and has all requisite power and authority to own and lease its properties and carry on its business as currently conducted. 

        4.2    Due Authorization.    Subject to the FCC Order and Final Order, Purchaser has full power and authority to enter
into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by
all necessary corporate action on the part of Purchaser. This Agreement has been duly executed and delivered by Purchaser and constitutes the legal, valid and binding obligation of Purchaser,
enforceable against it in accordance with its respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally or general equitable principles. 

        4.3    Execution and Delivery.    Neither the execution and delivery by Purchaser of this Agreement nor the
consummation of the transactions contemplated hereby will: (i) conflict with or result in a breach of the certificate of incorporation or bylaws of Purchaser; (ii) subject to the FCC
Order and Final Order, violate any law, statute, rule or regulation or any order, writ, injunction or decree of any court or governmental authority; or (iii) violate or conflict with or
constitute a default under (or give rise to any right of termination, cancellation or acceleration under) any indenture, mortgage, lease, contract or other instrument to which Purchaser is a party or
by which it is bound or affected. 

        4.4    Consents.    No consent, approval, authorization, license, exemption of, filing or registration with any court,
governmental authority, commission, board, bureau, agency or instrumentality, domestic or foreign, is required by Purchaser in connection with the execution and delivery of this Agreement or the
consummation by it of any transaction contemplated hereby, other than the consent of the FCC. No approval, authorization or consent of any other third party is required in connection with the
execution and delivery by Purchaser of this Agreement and the consummation of the transactions contemplated hereby, except as may have been previously obtained by Purchaser. Purchaser warrants 

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that it is legally qualified to become a licensee of the Station and is aware of no impediment to the approval by the FCC of the assignment of the Governmental Licenses to Purchaser. 

        4.5    Finders and Brokers.    No person has as a result of any agreement entered into by the Purchaser any valid
claim against any of the parties hereto for a brokerage commission, finder's fee or other like payment. 

        4.6    Purchaser's Qualification.    The Purchaser is in all material respects qualified legally, financially and
otherwise to be the licensee of the Station, and has or shall have sufficient resources to pay in full all amounts due to the Seller under this Agreement when such amounts are due. 

	5.
	CERTAIN COVENANTS AND AGREEMENTS.

        5.1    Consummation of the Transaction.    

        (a)  Each
of the Seller and Purchaser shall take all reasonable action necessary to consummate the transactions contemplated by this Agreement and will use all necessary and
reasonable means at its disposal to obtain (and cooperate with the other party in obtaining) all necessary approvals of the FCC and Third Party Consents required to enable it to consummate the
transactions contemplated by this Agreement. Except as otherwise provided herein, each of the Seller and Purchaser acknowledges and agrees that it shall pay all costs, fees and expenses incurred by it
in obtaining such necessary consents and approvals. Each party shall make all filings, applications, statements and reports to all governmental agencies or entities which are required to be made prior
to the Closing Date by or on its behalf pursuant to any statute, rule or regulation in connection with the transactions contemplated by this Agreement, and copies of all such filings, applications,
statements and reports shall be provided to the other. 

        (b)  If
the FCC determines that the transactions contemplated hereby or a portion thereof are inconsistent or violative of FCC rules or regulations, the parties agree that
they will negotiate in good faith to amend, modify or restructure the transactions contemplated hereby so as to be consistent with FCC rules and regulations. 

        (c)  Seller
will use its reasonable best efforts to obtain all Third Party Consents within 30 days after the date of this Agreement. All Third Party Consents shall be
in form reasonably satisfactory to Purchaser. 

        5.2    Public Announcements.    Prior to the Closing Date, all notices to third parties and other publicity relating
to the transaction contemplated by this Agreement (other than Purchaser's press releases issued pursuant to its obligations under federal securities laws) shall be jointly planned and agreed to by the
Seller and Purchaser. 

        5.3    Ordinary Course of Business.    During the period from the date hereof to the Closing Date, unless the prior
consent of Purchaser is first obtained, the Seller shall cause the Station to not knowingly take any action which would cause any representation contained in Article 3 to be untrue as of the
Closing Date. 

	6.
	CONDITIONS TO PURCHASER'S CLOSING.

        All
obligations of Purchaser under this Agreement shall be subject to the fulfillment at or prior to the Closing of the following conditions, it being understood that Purchaser may, in
its sole discretion, waive any or all of such conditions in whole or in part: 

        6.1    Representations, Etc.    The Seller shall have performed in all material respects the covenants and agreements
contained in this Agreement that are to be performed by it at or prior to the Closing, and the representations and warranties of the Seller contained in this Agreement shall be true and correct in all
material respects as of the Closing Date with the same effect as though made at such time (except as contemplated or permitted by this Agreement). 

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        6.2    FCC Order.    The FCC Order shall, at the Closing, be in full force and effect and shall have become a Final
Order. 

        6.3    No Adverse Litigation.    No order or temporary, preliminary or permanent injunction or restraining order shall
have been entered and no action, suit or other legal or administrative proceeding by any court or governmental authority shall be pending or threatened on the Closing Date which may have the effect of
(i) making any of the transactions contemplated hereby illegal or (ii) materially adversely affecting the value of the Purchased Assets. 

        6.4    Review of Broadcasting Signal Quality.    Purchaser, in its sole discretion, shall be satisfied with its
engineering review of the quality and coverage of the broadcast signal transmitted by the Station; provided, however, that this condition shall be deemed to be satisfied if Purchaser does not
terminate this Agreement within 30 days after the date on which Seller has notified Purchaser in writing that it has completed the construction of broadcast facilities as contemplated by the
Construction Permit and is broadcasting from such newly constructed facilities. 

        6.5    Closing Deliveries.    Purchaser shall have received each of the documents or items required to be delivered to
it pursuant to Section 8.1 hereof. 

	7.
	CONDITIONS TO SELLER'S CLOSING.

        All
obligations of the Seller under this Agreement shall be subject to the fulfillment at or prior to the Closing of the following conditions, it being understood that the Seller may, in
its sole discretion, waive any or all of such conditions in whole or in part: 

        7.1    Representations, Etc.    Purchaser shall have performed in all material respects t he covenants and agreements
contained in this Agreement that are to be performed by Purchaser as of the Closing, and the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all
material respects as of the Closing Date with the same effect as though made at such time (except as contemplated or permitted by this Agreement). 

        7.2    FCC Order.    The FCC Order shall, at the Closing, be in full force and effect. 

        7.3    No Adverse Litigation.    No order or temporary, preliminary or permanent injunction or restraining order shall
have been entered and no action, suit or other legal or administrative proceeding by any court or governmental authority shall be pending or threatened on the Closing Date which may have the effect of
(i) making any of the transactions contemplated hereby illegal or (ii) materially adversely affecting the value of the Purchased Assets. 

        7.4    Closing Deliveries.    The Seller shall have received each of the documents or items required to be delivered
to it pursuant to Section 8.2. 

	8.
	DOCUMENTS TO BE DELIVERED AT CLOSING.

        8.1    To Purchaser.    At the Closing, there shall be delivered to Purchaser: 

        (a)  The
bills of sale, agreements of assignment and similar instruments of transfer to the Purchased Assets contemplated by Section 2.3 hereof. 

        (b)  A
certificate, signed by an executive officer of Seller, as to the fulfillment of the conditions set forth in Sections 6.1 through 6.3 hereof. 

        (c)  The
Business Records. 

        (d)  Such
other documents and materials as may be reasonably requested by Purchaser to consummate the transactions contemplated hereby. 

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        8.2    To Seller.    At the Closing, there shall be delivered to the Seller: 

        (a)  The
purchase price contemplated by Section 2.1 hereof, in the form of wire transfer or cashier's or certified check as the Seller may direct. 

        (b)  A
certificate, signed by an executive officer of Purchaser, as to the fulfillment of the conditions set forth in Sections 7.1 and 7.2 hereof. 

        (c)  An
assumption agreement pursuant to which Purchaser shall assume the Assumed Contract. 

        (d)  Such
other documents and materials as may be reasonably requested by Seller to consummate the transactions contemplated hereby. 

	9.
	SURVIVAL.

        All
representations, warranties, covenants and agreements made by any party to this Agreement or pursuant hereto shall be deemed to be material and to have been relied upon by the
parties hereto and shall survive the Closing; provided, however, that notice of any claim against the Purchaser or Seller, whether made under the indemnification provisions hereof or otherwise, based
on a breach of a representation, warranty, covenant or agreement must be given within one year from the Closing Date. The representations and warranties hereunder shall not be affected or diminished
by any investigation at any time by or on behalf of the party for whose benefit such representations and warranties were made. No representation or warranty contained herein shall be deemed to be made
at any time after the date of this Agreement. 

	10.
	INDEMNIFICATION OF PURCHASER.

        Subject
to the limitations set forth in Sections 9 and 12, the Seller shall indemnify and hold Purchaser harmless from, against, for and in respect of: 

        (a)  any
and all damages, losses, settlement payments, obligations, liabilities, claims, actions or causes of action and encumbrances (collectively, together with the costs
and expenses described in clause (c) below, being referred to herein as "Damages") suffered, sustained, incurred or required to be paid by Purchaser because of the breach of any written
representation, warranty, agreement or covenant of the Seller contained in this Agreement; 

        (b)  any
and all liabilities, obligations, claims and demands arising out of the ownership and operation of the Station at all times prior to the Closing Date (other than the
contractual liabilities specifically assumed as set forth in Section 1.2 hereto); and 

        (c)  all
reasonable costs and expenses (including, without limitation, attorneys' fees, interest and penalties) incurred by Purchaser in connection with any action, suit,
proceeding, demand, assessment or judgment incident to any of the matters indemnified against in this Section 10; 

provided,
however, that after Closing, Seller shall have no liability to Purchaser hereunder until, and only to the extent that, Purchaser's aggregate Damages exceed $25,000. 

	11.
	INDEMNIFICATION OF SELLER.

        Subject
to the limitations set forth in Sections 9 and 12, Purchaser shall indemnify and hold the Seller harmless from, against, for and in respect of: 

        (a)  any
and all Damages suffered, sustained, incurred or required to be paid by the Seller because of the breach of any written representation, warranty, agreement or
covenant of Purchaser contained in this Agreement; 

        (b)  any
and all liabilities, obligations, claims and demands arising out of the ownership and operation of the Station on and after the Closing Date, except to the extent
the same arises from a 

9

 

breach of any written representation, warranty, agreement or covenant of the Seller contained in this Agreement or any document, certificate or agreement executed in connection with this Agreement; 

        (c)  in
respect of periods on and after the Closing Date, the Assumed Contract; and 

        (d)  all
reasonable costs and expenses (including, without limitation, attorneys' fees, interest and penalties) incurred by the Seller in connection with any action, suit,
proceeding, demand, assessment or judgment incident to any of the matters indemnified against in this Section 11; 

provided,
however, that after Closing, Purchaser shall have no liability to Seller hereunder until, and only to the extent that, Seller's aggregate Damages exceed $25,000. 

	12.
	GENERAL RULES REGARDING INDEMNIFICATION.

        The
obligations and liabilities of each indemnifying party hereunder with respect to claims resulting from the assertion of liability by the other party or indemnified third parties
shall be subject to the following terms and conditions: 

        (a)  The
indemnified party shall give prompt written notice (which in no event shall exceed 30 days from the date on which the indemnified party first became aware of
such claim or assertion) to the indemnifying party of any claim which might give rise to a claim by the indemnified party against the indemnifying party based on the indemnity agreements contained in
Section 10 or 11 hereof, stating the nature and basis of said claims and the amounts thereof, to the extent known; 

        (b)  If
any action, suit or proceeding is brought against the indemnified party with respect to which the indemnifying party may have liability under the indemnity agreements
contained in Section 10 or 11 hereof, the action, suit or proceeding shall, upon the written acknowledgment by the indemnifying party that it is obligated to indemnify under such indemnity
agreement, be defended (including all proceedings on appeal or for review which counsel for the indemnified party shall deem appropriate) by the indemnifying party. The indemnified party shall have
the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the indemnified party's own expense unless (A) the employment of such counsel and the
payment of such fees and expenses both shall have been specifically authorized in writing by the indemnifying party in connection with the defense of such action, suit or proceeding, or
(B) counsel to such indemnified party shall have reasonably concluded and specifically notified the indemnifying party that there may be specific defenses available to it which are different
from or additional to those available to the indemnifying party or that such action, suit or proceeding involves or could have an effect upon matters beyond the scope of the indemnity agreements
contained in Sections 10 and 11 hereof, in any of which events the indemnifying party, to the extent made necessary by such defenses, shall not have the right to direct the defense of such action,
suit or proceeding on behalf of the indemnified party. In the latter such case only that portion of such fees and expenses of the indemnified party's separate counsel reasonably related to matters
covered by the indemnity agreements contained in Section 10 or 11 hereof shall be borne by the indemnifying party. The indemnified party shall be kept fully informed of such action, suit or
proceeding at all stages thereof whether or not it is represented by separate counsel. 

        (c)  The
indemnified party shall make available to the indemnifying party and its attorneys and accountants all books and records of the indemnified party relating to such
proceedings or litigation and the parties hereto agree to render to each other such assistance as they may reasonably require of each other in order to ensure the proper and adequate defense of any
such action, suit or proceeding. 

        (d)  The
indemnified party shall not make any settlement of any claims without the written consent of the indemnifying party, which consent shall not be unreasonably withheld
or delayed. 

        (e)  If
any claims are made by third parties against an indemnified party for which an indemnifying party would be liable, and it appears likely that such claims might also
be covered by the indemnified party's insurance policies, the indemnified party shall make a timely claim under such policies and to 

10

 

the extent that such party obtains any recovery from such insurance, such recovery shall be offset against any sums due from an indemnifying party (or shall be repaid by the indemnified party to the
extent that an indemnifying party has already paid any such amounts). The parties acknowledge, however, that if an indemnified party is self-insured as to any matters, either directly or
through an insurer which assesses retroactive premiums based on loss experience, then to the extent that the indemnified party bears the economic burden of any claims through
self-insurance or retroactive premiums or insurance ratings, the indemnifying party's obligation shall only be reduced by any insurance recovery in excess of the amount paid or to be paid
by the indemnified party in insurance premiums. 

        (f)    Except
as herein expressly provided, the remedies provided in Sections 10 through 12 hereof shall be cumulative and shall not preclude assertion by any party of any
other rights or the seeking of any other rights or remedies against any other party hereto. 

	13.
	TERMINATION AND RESCISSION RIGHTS; RISK OF LOSS.

        13.1    Termination.    This Agreement shall automatically be terminated without liability to either party if
Purchaser exercises its right to do so under Section 6.4. This Agreement may also be terminated by the mutual consent of Purchaser and Seller, or by either Purchaser or Seller, if the
terminating party is not then in material breach of its obligations hereunder, upon written notice to the other upon the occurrence of any of the following: 

        (a)  By
the terminating party, if the other party is in material breach of its obligations hereunder, and such breach has not been cured by the other party within
30 days of written notice of such breach (or such longer period of time if the breach cannot be reasonably cured within 30 days and the breaching party is diligently attempting to cure
such breach); 

        (b)  If
the FCC denies the FCC Application; or 

        (c)  If
the Closing has not occurred on or before May 31, 2002 (provided, however, that such date may be extended by the Purchaser for such additional period of time
to obtain any required governmental consent, including the CP Modification, provided that Purchaser continues to use its reasonable best efforts to obtain such consent). 

If
Seller terminates this Agreement due to Purchaser's failure to consummate the Closing on the Closing Date or if this Agreement is otherwise terminated by Seller pursuant to Section 13.1(a),
then the Deposit and any interest accrued thereon shall be paid to Seller, and such payment shall constitute liquidated damages. It is understood and agreed that such liquidated damages amount
represents Purchaser's and Seller's reasonable estimate of actual damages and does not constitute a penalty. Further, Seller shall be entitled to the recovery of reasonable attorneys' fees and court
costs in addition to such liquidated damages. 

        13.2    Rescission.    In the event the parties elect to close prior to the time the FCC Order has become a Final
Order, Purchaser and Seller shall enter into rescission agreement to be mutually agreed upon which provides for unwinding the transaction in the event a Final Order is not obtained. 

        13.3    Risk of Loss.    The Seller shall bear the risk of all damage to, loss of or destruction of any of the
Purchased Assets between the date of this Agreement and the Closing Date. If any material portion of the Purchased Assets shall suffer any material damage or destruction prior to the Closing Date, the
Seller shall promptly notify the Purchaser in writing of such damage or destruction, shall promptly take all necessary steps to restore, repair or replace such assets at its sole expense, and shall
advise the Purchaser in writing of the estimated cost to complete such restoration, repair or replacement and all amounts actually paid as of the date of the estimate. The Purchaser or Seller may
extend the Closing Date for a period not exceeding 45 days to accomplish such restoration, repair or replacement, but is not required to do so. If such restoration, repair or replacement is not 

11

 

accomplished prior to the Closing Date, as the same may be extended as provided herein, the Purchaser may, at its option: 

        (a)  terminate
this Agreement upon written notice to Seller; or 

        (b)  receive
all insurance proceeds paid or payable to Seller, close this Agreement and thereafter complete such restoration, repair or replacement at its sole expense;
provided, however, Seller shall have no further liabilities with respect to such damage or destruction after payment to Purchaser of such insurance proceeds. 

	14.
	SPECIFIC PERFORMANCE

        The
parties acknowledge that the Purchased Assets and the transactions contemplated hereby are unique, that a failure by Seller or Purchaser to complete such transactions will cause
irreparable injury to the other, and that actual damages for any such failure may be difficult to ascertain and may be inadequate. Consequently, Seller and Purchaser agree that each shall be entitled,
in the event of a default by the other, to specific performance of any of the provisions of this Agreement in addition to any other legal or equitable remedies to which the non-defaulting
party may otherwise be entitled. In the event any action is brought, the prevailing party shall be entitled to recover court costs, arbitration expenses and reasonable attorneys' fees. 

	15.
	MISCELLANEOUS PROVISIONS.

        15.1    Expenses.    Except as otherwise expressly provided herein, each party shall pay the fees and expenses
incurred by it in connection with the transactions contemplated by this Agreement. If any action is brought for breach of this Agreement or to enforce any provision of this Agreement, the prevailing
party shall be entitled to recover court costs and reasonable attorneys' fees. 

        15.2    Prorations.    All items of income and expense arising from the operation of the Station with respect to the
Purchased Assets and the Assumed Contract on or before the close of business on the Closing Date shall be for the account of the Seller and thereafter shall be for the account of the Purchaser.
Proration of the items described below between the Seller and the Purchaser shall be effective as of 11:59 p.m., local time, on such date and shall occur as follows with respect to those
rights, liabilities and obligations of the Seller transferred to and assumed by the Purchaser hereunder. 

        (a)  Liability
for state and local taxes assessed on the Purchased Assets payable with respect to the tax year in which the Closing Date falls and the annual FCC regulatory
fee for the Station payable with respect to the year in which the Closing Date falls shall each be prorated as between the Seller and the Purchaser on the basis of the number of days of the tax year
elapsed to and including such date. 

        (b)  Prepaid
items, deposits, credits and accruals such as water, electricity, telephone, other utility and service charges, lease expenses, license fees (if any) and
payments under any contracts or utility services to be assumed by the Purchaser shall be prorated between the Seller and the Purchaser on the basis of the period of time to which such liabilities,
prepaid items and accruals apply. 

All
prorations shall be made and paid insofar as feasible on the Closing Date; any prorations not made on such date shall be made as soon as practicable (not to exceed 90 days) thereafter. The
Seller and the
Purchaser agree to assume, pay and perform all costs, liabilities and expenses allocated to each of them pursuant to this Section 15.2. 

        15.3    Amendment.    This Agreement may be amended at any time but only by an instrument in writing signed by the
parties hereto. 

        15.4    Notices.    All notices and other communications hereunder shall be in writing and shall be deemed given if
mailed by certified mail, return receipt requested, or by nationally recognized "next-day" delivery service, to the parties at the addresses set forth below (or at such other address for 

12

 

a party as shall be specified by like notice), or sent by facsimile to the number set forth below (or such other number for a party as shall be specified by proper notice hereunder): 

If
to the Purchaser: 

3102
Oak Lawn, Suite 215

Dallas, Texas 75219

Attn: President

Fax: (214) 525-7750 

If
to the Seller: 

P.O. Box
2837

Merced, California 95344

Fax: (208) 723-2772 

with
copy to: 

Gary
Schwartz

Narvid Scott Schwartz & Frangle

15060 Ventura Boulevard, Suite 490

Sherman Oaks, California 91403

Fax: (818) 907-9896 

        15.5    Assignment.    This Agreement may not be assigned by either party without the prior consent of the other
party, which shall not be unreasonably withheld; provided, however, that Purchaser may assign its rights and obligations to any of its direct or indirect subsidiaries, without the requirement of
consent of the Seller, so long as Hispanic Broadcasting Corporation remains obligated hereunder for payment of the Purchase Price. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, heirs and permitted assigns. 

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

        15.7    Headings.    The headings of the Sections of this Agreement are inserted for convenience only and shall not
constitute a part hereof. 

        15.8    Entire Agreement.    This Agreement and the documents referred to herein contain the entire understanding of
the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties, conveyances or undertakings other than those expressly set forth herein. This
Agreement supersedes any prior agreements and understandings between the parties with respect to the subject matter. 

        15.9    Waiver.    No attempted waiver of compliance with any provision or condition hereof, or consent pursuant to
this Agreement, will be effective unless evidenced by an instrument in writing by the party against whom the enforcement of any such waiver or consent is sought. 

        15.10    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of California without regard to its principles of conflict of law. PURCHASER AND SELLER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING IN ANY WAY
TO THIS AGREEMENT, AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE DECIDED SOLELY BY A JUDGE. Purchaser and Seller hereby acknowledge that they have each been represented by counsel in the
negotiation, execution and delivery of this Agreement and that their lawyers have fully explained the meaning of this Agreement, including in particular the jury trial waiver. 

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        15.11    Certain Definitions.    As used in this Agreement, "affiliates" of a party shall mean persons or entities
that directly, or indirectly through one or more intermediaries, control or are controlled by, or are under common control with, such party. 

        15.12    Intended Beneficiaries.    The rights and obligations contained in this Agreement are hereby declared by the
parties hereto to have been provided expressly for the exclusive benefit of such entities as set forth herein and shall not benefit, and do not benefit, any unrelated third parties. 

        15.13    Mutual Contribution.    The parties to this Agreement and their counsel have mutually contributed to its
drafting. Consequently, no provision of this Agreement shall be construed against any party on the ground that such party drafted the provision or caused it to be drafted or the provision contains a
covenant of such party. 

        15.14    Attorneys' Fees.    In the event of any dispute between the parties to this Agreement, Seller or Purchaser,
as the case may be, shall reimburse the prevailing party for its reasonable attorneys' fees and other costs incurred in enforcing its rights or exercising its remedies under this Agreement. Such right
of reimbursement shall be in addition to any other right or remedy that the prevailing party may have under this Agreement. 

        15.15    1031 Exchange.    Purchaser will cooperate with Seller in effectuating a like-kind exchange under
Section 1031 of the Internal Revenue Code, provided that such exchange does not delay the Closing Date nor subject the Purchaser to any present or future cost, expense or liability or in any
way subject Purchaser to any financial or tax risk. Seller's assignment of this Agreement in such exchange to any third party acting as a qualified intermediary will not relieve Seller of any of its
duties or obligations herein. In no event will Purchaser have any liability or obligation to Seller for the failure of the contemplated exchange to qualify as a like-kind exchange under
Section 1031 of the Internal Revenue Code unless such failure is the direct result of the material breach or default by Purchaser under this Agreement. 

        15.16    Time of the Essence.    Time is of the essence for all performances by Purchaser and Seller hereunder. 

        15.17    Warranty of Signatures.    Each of the persons signing this Agreement on behalf of any entity warrants and
represents that he has the right, power, legal capacity and authority to execute this Agreement on behalf of such entity, without the concurrence or approval of any other person, any entity or any
court, and to thereby bind such entity to this Agreement. 

        15.18    Bulk Transfer.    Neither the Seller nor the transactions contemplated herein are subject to any bulk
transfer or similar law. 

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

	 	 	HISPANIC BROADCASTING CORPORATION
	

 	
 	
By:	

/s/  MCHENRY T. TICHENOR, JR.      

	 	 	SAN JOAQUIN RADIO COMPANY, LLC
	

 	
 	
By:	

/s/  EDWARD G. HOYT, JR.      

15

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Exhibit 10.16 

 
 

ASSET PURCHASE AGREEMENT    
  

        This Asset Purchase Agreement ("Agreement"), made as of the 17th day of December, 2001, between Empire Broadcasting
Corporation, a Delaware corporation ("Seller"), and Hispanic Broadcasting Corporation, a Delaware corporation ("Buyer"). 

WITNESSETH:  

        WHEREAS, Seller is the licensee of Radio Station KARA (FM), Santa Clara, California (the "Station") and related licenses and authorizations issued by the Federal
Communications Commission (the "FCC"); 

        WHEREAS,
Seller desires to sell certain properties and assets pertaining to the Station, and Buyer desires to purchase the same, subject to the terms and conditions set forth herein; 

        WHEREAS,
the defined terms shall have the meanings ascribed to them in Article 13; 

        NOW,
THEREFORE, in consideration of the mutual covenants contained herein, Seller and Buyer hereby agree as follows: 

 
 

ARTICLE 1
  ASSETS TO BE CONVEYED    
  

        1.1    Closing. Subject to (i) the provisions of Section 10.1 and
(ii) the satisfaction or, to the extent permissible by law, waiver (by the party for whose benefit the closing condition is imposed), on or prior to the date scheduled for the Closing, of the
closing conditions set forth in Article 7 hereof, including, for example, the consent of the FCC to the transaction contemplated by this Agreement, the closing (the "Closing") of the sale and
purchase of the Station Assets (as defined in Section 1.2) shall take place in the offices of Hoge, Fenton, Jones & Appel, Inc., 60 South Market Street, Suite 1400, San Jose,
California, at 11:00 a.m., local time, on the seventh day following the satisfaction or waiver of the conditions set forth in Article 7 (or on the next normal business day if the tenth
day is not a normal business day) or on January 2, 2002, whichever is later, or at such other place, time or date as Buyer and Seller may mutually agree in writing. 

        1.2    Transfer of Assets. Subject to the terms and conditions set forth in this Agreement, Seller hereby agrees to sell,
assign, transfer, convey and deliver to Buyer on the Closing Date, and Buyer agrees to purchase all of Seller's right, title and interest in, the following assets, together with any additions thereto
(pursuant to paragraph (a) or paragraph (e) below) between the date of this Agreement and the Closing Date, free and clear of all Liens, except as otherwise provided in this Agreement,
but excluding the assets described in Section 1.3 (collectively, the "Station Assets"): 

        (a)  All
licenses, permits, construction permits, and other authorizations issued by the FCC, the Federal Aviation Administration, or any other federal, state or local
governmental authority to Seller, currently in effect and used in the conduct of the business or operations of the Station, together with renewals or modifications thereof and any additions thereto
between the date hereof and the Closing Date, including, without limitation, the licenses, permits and authorizations listed on Schedule 1.2(a)
attached hereto (the licenses, permits and authorizations issued by the FCC collectively are referred to herein as the "FCC Licenses;" and the FCC Licenses and the licenses, permits and other
authorizations issued by any other governmental authority collectively are referred to herein as the "Station Licenses"); 

        (b)  All
of Seller's right, title and interest in the equipment, spare parts and other tangible personal property located at the Station's transmitters or studio site and
used exclusively in the 

1

 

operation of the Station and in any other tangible personal property identified on Schedule 1.2(b) (the "Personal Property"); 

        (c)  All
contracts which (i) are listed on Schedule 1.2(c) hereto and designated as "material contracts" (the
"Material Contracts"), (ii) are listed on Schedule 1.2(c) and designated as "other contracts" provided that, as to any such contract the
assignment of which requires the consent of a party other than Seller, such consent is obtained prior to the Closing (the "Other Contracts"), or (iii) are entered into between the date hereof
and the Closing which Seller has agreed to assign, and Buyer has agreed to assume, in writing at the Closing provided that, with respect to any such contract the assignment of which requires the
consent of a party other than Seller, such consent is obtained prior to the Closing (the "Post-Agreement Contracts"); the Material Contracts, Other Contracts and Post-Agreement
Contracts being referred to in this Agreement as the "Assumed Contracts;" 

        (d)  Seller's
public inspection file, filings with the FCC relating to the Station, and such technical information, engineering data, rights under manufacturers' warranties
as exist at Closing and relate exclusively to the assets being conveyed hereunder; 

        (e)  All
copyrights, logos, slogans, trademarks, trade names, service marks, domain names and other intellectual property used by the Station, as listed on  Schedule 1.2(e), together with any associated
goodwill (the "Intellectual Property"); 

        (f)    Copies
of the Assumed Contracts, and all records required by the FCC to be kept by the Station; 

        (g)  All
of Seller's proprietary information, technical information and data, machinery and equipment warranties, maps, computer discs and tapes, plans, diagrams, blueprints
and schematics, including filings with the FCC, relating to the business and operation of the Station; 

        (h)  All
of Seller's right, title and interest in and to the transmission tower and related real property listed on  Schedule 1.2(h) hereto, including, without limitation, the fee interest in the real
property and all of the improvements thereon (the "Real
Property"), free and clear of all Liens except as indicated on Schedule 1.2(h) hereto and, notwithstanding Schedule 1.2(h), free and clear
of all tenancies and occupants; and 

        (i)    Those
agreements and arrangements for the exchange of advertising time for consideration other than money (the "Trade-Out Agreements") set forth on  Schedule 1.2(i) which remain in effect and unfulfilled
as of the Closing Date. 

        1.3    Excluded Assets. The Station Assets shall not include the following: 

        (a)  All
cash, cash equivalents or similar investments such as certificates of deposit, treasury bills and other marketable securities on hand and/or in banks, deposits or
prepaid expenses of Seller; 

        (b)  All
accounts receivable of Seller; 

        (c)  Any
insurance policies, promissory notes, amounts due from employees, bonds, letters of credit, certificates of deposit, or other similar items, and any cash surrender
value in regard thereto; 

        (d)  Any
pension, profit-sharing or cash or deferred (section 401(k)) plans and trust and assets thereof any other employee benefit plan or arrangement and the assets
thereof of Seller; 

        (e)  Duplicate
copies of such records as may be necessary to enable Seller to prepare and file tax returns and reports, all original financial statements and supporting
materials, all books and 

2

 

records that Seller is required by law to retain, and all records of Seller relating to the sale of the Station Assets; 

        (f)    Any
interest in and to any refunds of federal, state or local franchise, income or other taxes for periods prior to the Closing; 

        (g)  All
tangible and intangible personal property disposed of or consumed between the date of this Agreement and the Closing, as permitted under this Agreement; 

        (h)  Any
other assets identified on Schedule 1.3(h). 

        (i)    Assets
not used by Seller in the operation of the Station; and 

        (j)    The
real property located at 750 Story Road, San Jose, California. 

        1.4    Assumption of Liabilities and Obligations. As of the Closing Date, Buyer shall assume and undertake to pay, discharge and
perform all obligations and liabilities of Seller arising or accruing after the Closing under the Station Licenses, Assumed Contracts and the Trade-Out Agreements. Buyer shall not assume
any other obligations or liabilities of Seller, including (i) any obligations or liabilities under any contract or agreement not included in the Assumed Contracts or the Trade-Out
Agreements, (ii) any obligation or liabilities under the Assumed Contracts relating to the period prior to the Closing except insofar as an adjustment therefor is made in favor of Buyer under  Section 2.4, (iii) any claims or pending litigation or proceedings relating to the operation of the Station prior to the Closing,
(iv) any obligations or liabilities of Seller which are unrelated to the Station, (v) any agreements, executed or executory, relating to the exchange of broadcast time on the Station for
goods, wares, services, advertising, promotions, merchandising or anything other than cash ("Trade-Out Agreements"), and (vi) any obligations relating to the Excluded Assets. 

 
 

ARTICLE 2
  PURCHASE PRICE    
  

        2.1    Purchase Price. The purchase price (the "Purchase Price") for the Station Assets shall be Fifty
Eight Million Twenty Five Thousand One Hundred Twenty Five Dollars ($58,025,125). 

        2.2    Payment of Purchase Price. Buyer shall pay the Purchase Price as follows: 

        (a)  Simultaneous
with the execution of this Agreement, Buyer shall deposit $2,901,256.25 (the "Escrow Deposit") with the Escrow Agent to be held and distributed pursuant to
the Escrow Agreement attached hereto as Exhibit A. 

        (b)  At
the Closing, Buyer shall pay Seller the Purchase Price, less the Escrow Deposit, by wire transfer of immediately available funds to an account at a bank or other
financial institution pursuant to wire transfer instructions that Seller shall deliver to Buyer at least five (5) days prior to the Closing Date. 

        2.3    Allocation. The Purchase Price shall be allocated for income tax purposes in the manner set forth in  Schedule 2.3 to this Agreement.
Such agreed allocations shall be used by the parties in preparing all relevant tax returns, information reports
and other tax documents and forms. Such allocation shall be based on an appraisal by a mutually acceptable appraiser. The parties shall each pay for one-half of the appraiser's fee and
expenses. 

        2.4    Prorations. All income and expenses arising from the conduct of the business and operations of the Station shall be
prorated between Buyer and Seller as of 12.01 a.m. local time, on the Closing Date in accordance with generally accepted accounting principles. Such prorations shall be based upon the
principles that Seller shall be entitled to all income earned and shall be responsible for all liabilities and obligations accruing in connection with the operation of the Station until the Closing
Date, and Buyer shall be entitled to such income earned and be responsible for such liabilities and obligations 

3

 

accruing in connection with the operation of the Station thereafter. Such prorations shall include, without limitation, all ad valorem and other property taxes (but excluding taxes arising by reason
of the transfer of the Station Assets as contemplated hereby, which shall be paid as set forth in Section 12.1 of this Agreement), deposits,
utility expenses, liabilities and obligations under all Assumed Contracts and Trade-Out Agreements, rents and similar prepaid and deferred items and all other expenses attributable to the
ownership and operation of the Station; provided, however, there shall be no adjustment for, and Seller shall remain solely liable for, any contracts or agreements not included in the Assumed
Contracts and any other obligation or liability not being assumed by Buyer in accordance with Section 1.4. All real estate taxes shall be
apportioned on the basis of the number of days that each party owned the Real Property during the relevant tax year. 

 
 

ARTICLE 3
  REPRESENTATIONS AND WARRANTIES OF SELLER    
  

        Seller represents and warrants to Buyer that, except as otherwise disclosed in the schedules to this Agreement, including, for example,  Schedule 3.0 (Schedule of Exceptions), the following representations and warranties will be true and correct on the Closing Date, except for
those representations and warranties specifically noted as being true and correct as of the date of this Agreement through the Closing Date: 

        3.1    Organization and Standing. As of the date of this Agreement through the Closing Date, Seller (a) is a corporation
duly formed, validly existing and in good standing under the laws of the State of Delaware; (b) is qualified to do business in the State of California; and (c) has all necessary power
and authority to carry on the business of the Station. 

        3.2    Authorization and Binding Obligation. As of the date of this Agreement through the Closing Date, Seller has all necessary
power and authority to enter into and perform its obligations under this Agreement and the documents contemplated hereby and to consummate the transactions contemplated hereby and thereby. As of the
date of this Agreement through the Closing Date, this Agreement has been duly executed and delivered by Seller and is enforceable in accordance with its terms, except as may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally or the availability of equitable remedies. 

        3.3    Absence of Conflicting Agreements or Required Consents. As of the date of this Agreement through the Closing Date, the
execution, delivery and performance of this Agreement and the documents contemplated hereby (with or without the giving of notice, the lapse of time, or both) by Seller: (a) do not and will not
violate any provisions of Seller's organizational documents; (b) do not and will not conflict with, result in a breach of, constitute a default under, or violate any applicable law, judgment,
order, ordinance, injunction, decree, rule regulation or ruling of any court or governmental authority; (c) do not and will not, either alone or with the giving of notice or the passage of
time, or both, conflict with, constitute grounds for termination of, result in a breach of, constitute a default under, or accelerate or permit the acceleration of any performance required by the
terms of, any agreement, lease, instrument, license or permit to which Seller is a party or by which Seller is bound; and (d) will not create any claim, liability, mortgage, lien, pledge,
condition, charge, or encumbrance upon any of the Station Assets. 

        3.4    Litigation. There is no claim, action, counterclaim, suit, litigation, labor dispute, arbitration, or other legal,
administrative, or tax proceeding, nor any order, decree, or judgment, pending, or to the knowledge of Seller threatened, against or relating to Seller with respect to the ownership or operation of
the Station or otherwise relating to the Station Assets or the business or operations of the Station. 

        3.5    Station and Other Licenses. 

4

 

        (a)  Schedule 1.2(a)
contains a true and complete list of the Station Licenses, and there are no other licenses, permits or other authorizations required for the
lawful operation of the Station in the manner now operated. Seller has made available to Buyer true and complete copies of the Station Licenses (including any amendments and other modifications
thereto). Seller is the authorized legal holder of the Station Licenses. The Station Licenses are in good standing and in full force and effect. To the best of Seller's knowledge, the Station and the
facilities of the Station are being operated in all material respects in accordance with the FCC Licenses and all material FCC rules and policies. 

        (b)  Except
as set forth in Schedule 1.2(a), and except for proceedings affecting the radio broadcasting industry generally, there are no applications, petitions,
complaints, investigations, forfeitures, proceedings or other actions pending or, to the best of Seller's knowledge, threatened before the FCC relating to the Station or the Station Licenses. Should
any such filing be made or action initiated, Seller shall promptly notify Buyer thereof. To the best of Seller's knowledge, Seller's transmission tower and equipment have been operated and maintained
by Seller in material compliance with the Communications Act and the rules and regulations of the FCC and the Federal Aviation Administration ("FAA"), and the tower has been properly registered with
the FCC and approved by the FAA as necessary. 

        (c)  Seller
is qualified to hold the FCC Licenses. 

        (d)  In
addition to the Station Licenses, to the best of Seller's knowledge, Seller possesses all licenses and other required governmental or official approvals, permits or
authorizations, the failure to possess which would have a material adverse effect on the business, financial condition or results of operations of Seller. To Seller's knowledge, such licenses,
approvals, permits and authorizations are in full force and effect, Seller is in compliance with their requirements and no proceeding is pending or threatened to revoke or amend any of them.
Schedule 1.2(d) contains a complete list of such licenses, approvals, permits and authorizations. 

        3.6    Title to and Condition of Real and Personal Property. 

        (a)  Except
as disclosed on Schedule 1.2(b), Seller has good and marketable title to the Personal Property free and clear of all Liens. Except as disclosed on
Schedule 1.2(h), Seller has good and marketable title to the Real Property, free and clear of all Liens. 

        (b)  At
the Closing, the Personal Property will be in good condition and working order, ordinary wear and tear excepted, and reasonably suitable for the uses for which
intended, free from any defects known to Seller, normal wear and tear excepted, and will be in material compliance with the published rules and regulations of the FCC and, to the best of Seller's
knowledge, all other applicable federal, state and local statutes, ordinances, rules and regulations. 

        (c)  Both
the Personal Property and the Real Property are available for immediate use in the operation of the Station. Seller has not received written notice of any violation
of law, municipal or county ordinances or other legal requirements with respect to the Real Property or with respect to the use, occupancy or construction thereof. Seller has not received any written
notice of any pending or threatened termination or impairment of access to the Real Property or discontinuation of necessary sewer, water, electrical, gas, telephone or other utilities or services. 

        (d)  Seller
has not received any written notice (i) that either the whole or any portion of the Real Property is to be condemned, requisitioned or otherwise taken by
any public authority, (ii) of violation of restrictive covenants, deed restrictions or governmental requirements on the Real Property which have not been remedied, (iii) of any
proceedings which would cause the change, redefinition or other modification of the zoning classification or (iv) any proceedings to widen or realign any street or highway adjacent to the Real
Property. 

5

 

        3.7    Leased Property. 

        (a)  Schedule 1.2(c)
contains descriptions of all of Seller's leased property interests (the "Leased Property"). 

        (b)  Seller
owns a valid interest as Lessee under the Leased Property free and clear of all Liens. 

        3.8    Assumed Contracts. To the best of Seller's knowledge, the Assumed Contracts are in full force and effect and are legally
valid, binding and enforceable by Seller in accordance with their respective terms, except as limited by laws affecting creditor's rights or equitable principles generally. To the best of Seller's
knowledge, Seller is not in any material respect in default under Assumed Contracts. 

        3.9    Compliance with Laws. To the best of Seller's knowledge, Seller has complied in all material respects with, and is not in
any material respect in violation of, any federal, state or local laws, statutes, rules, regulations or orders relating to the ownership and operation of the Station. 

        3.10    Broker's Fees. As of the date of this Agreement through the Closing Date, other than a payment owed by Seller to Media
Venture Partners, and a payment to Star Media Group owed by Buyer, neither Seller nor any person or entity acting on Seller's behalf has agreed to pay a commission, finder's fee or similar payment in
connection with this Agreement or any matter related hereto to any person or entity, and no person or entity is entitled to any such payment from Seller in connection with the transactions
contemplated by this Agreement. 

        3.11    Consents. As of the date of this Agreement, except for the FCC Consent provided in  Section 5.1, a filing with the Federal Trade
Commission and the United States Justice Department under the Hart-Scott-Rodino
Anti-Trust Improvements Act of 1976, as amended ("Hart-Scott-Rodino"), if applicable, and the consents listed on Schedule 1.2(c), no consent, approval, permit, or
authorization of, or declaration to, or filing with any governmental or regulatory authority or any other third party is required (a) to consummate the transactions contemplated hereby; or
(b) to permit Seller to assign or transfer the Station Assets to Buyer. 

        3.12    Taxes. Seller has filed all federal, state, county and local tax returns and reports required to be filed by it with
respect to taxes for which successor liability will apply, including payroll, property, withholding, social security, sales and use taxes, to the extent that such taxes relate to the Station Assets;
has either paid in full all such taxes that have become due as reflected on any return or report and any interest and penalties with respect thereto or has fully accrued on its books or has
established adequate reserves for all taxes payable but not yet due; and has made required cash deposits with appropriate governmental authorities representing estimated payments of taxes, including
employee withholding tax obligations. No extension or waiver of any statute of limitations or time within which to file any return has been granted to or requested by Seller with respect to any such
tax. No unsatisfied deficiency, delinquency or default for any tax, assessment or governmental charge has been assessed (or, to the knowledge of Seller, claimed or proposed) against Seller, nor has
Seller received notice of any such deficiency, delinquency or default. 

        3.13    Reports. All reports and statements that the Seller is required to file with the FCC have been filed, and all reporting
requirements of the FCC have been complied with in all material respects. 

        3.14    Trademarks and Similar Rights. To the best of Seller's knowledge, the use of the Intellectual Property in connection
with the conduct or operation of the Station has not infringed, is not infringing upon and is not otherwise violating the rights of any third party in or to such Intellectual Property or the asserted
proprietary rights of others, and no notices have been received by Seller that the use of the Intellectual Property in connection with the conduct or operation of the Station infringes 

6

 

upon or otherwise violates any rights of a third party in or to the Intellectual Property or the proprietary rights of others. 

        3.15    Financial Statements of Seller. 

        Seller
has previously delivered to Buyer Seller's unaudited balance sheet and income statement as of and for the year ended December 31, 2000 and unaudited balance sheet and
income statement as of and for the nine (9) months ended September 30, 2001. These financial statements have been prepared in all material respects in accordance with generally accepted
accounting principles consistently followed by Seller throughout the periods indicated (except that they may omit certain footnotes required by such principles and the interim financial statements do
not reflect normal year-end adjustments and accruals) and fairly present financial position of Seller as of the respective dates of the balance sheets included and the results of its
operations for the respective periods indicated. 

        3.16    Absence of Changes in Seller's Business Operations. With reference to the Station Assets and the operations of the
Station, from September 30, 2001 to the date hereof, there has not been any: 

        (a)  Transaction
by Seller related to the Station entered into except in the ordinary course of business; 

        (b)  Material
adverse change in the financial condition, liabilities, assets, business, or prospects of Seller with respect to the Station; 

        (c)  Destruction,
damage, or loss of any asset of Seller (insured or uninsured) that materially and adversely affects the financial condition, business, or prospects of
Seller with respect to the Station; 

        (d)  Material
change in accounting methods or practices (including any change in depreciation or amortization policies or rates) by Seller with respect to the Station; 

        (e)  Sale
or transfer of any material asset used by Seller in the operation of the Station, except in the ordinary course of business; 

        (f)    Amendment
or termination of any contract, agreement, or license related to the operation of the Station, except in the ordinary course of business; 

        (g)  Commencement
or notice or threat of commencement of any civil litigation or any governmental proceeding against or investigation of the Seller or the affairs of either
of them; or 

        (h)  Labor
trouble or claim of wrongful discharge or other unlawful labor practice or action. 

        3.17.    Personnel. Schedule 3.17 lists the names of all persons employed
by Seller directly and principally in connection with the operation of the Station. Seller is not a party to or subject to any collective bargaining agreements with respect to the Station. To the best
of Seller's knowledge, there is no representation or organizing effort pending or threatened against or involving or affecting Seller with respect to employees employed at the Station. There is no
pending or, to the best of Seller's knowledge, threatened labor dispute, strike, or work stoppage affecting the Station. 

        3.18    Employee Benefits. 

        (a)  All
of Seller's Employee Plans and Compensation Arrangements providing benefits to employees of the Station as of the Effective Date are listed and described in  Schedule 3.18, and copies of any such
written Employee Plans and Compensation Arrangements (or related insurance policies) and any amendments
thereto are available to Buyer, along with copies of any currently available employee handbooks or similar documents describing such Employee Plans and Compensation Arrangements. Except as disclosed
in Schedule 3.18, there is not now in effect or scheduled to become effective any new Employee Plan or Compensation Arrangement or any 

7

 

amendment to an existing Employee Plan or Compensation Arrangement which will affect the benefits of employees or former employees of the Station. 

        (b)  Seller
does not contribute to and is not required to contribute to any Multiemployer Plan with respect to its employees at the Station. 

        3.19    Environmental Matters. In respect of the Real Property: 

        (a)  Seller
has not received any written notice from any governmental authority that Seller is in violation or alleged violation of any judgment, decree, order, law, license,
rule or regulation pertaining to environmental matters, including, without limitation those arising under the Resource Conservation and Recovery Act, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 as amended ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, the Federal Water Pollution Control Act, the Solid Waste Disposal Act, as
amended, the Federal Clean Air Act, the Toxic Substances Control Act, or any state or local statute, regulation, ordinance, order or decree relating to the environment, (hereinafter "Environmental
Laws"); 

        (b)  Seller
has not received written notice from any third party, including without limitation any federal, state or local governmental authority, that any hazardous waste,
as defined by 42 U.S.C. §6903(5), any
hazardous substance as defined by 42 U.S.C. §9601(33) or any toxic substance, oil or hazardous material or other hazardous chemical or hazardous substance regulated by any Environmental
Laws ("Hazardous Substances") which Seller has generated, transported or disposed of has been found at any site at which a federal, state or local agency or other third party has conducted or has
ordered that Seller conduct a remedial investigation, removal or other response action pursuant to any Environmental Law; 

        (c)  No
portion of any of the Real Property. has been used by Seller for the handling, manufacturing, processing, storage or disposal of Hazardous Substances in material
violation of applicable Environmental Laws; and 

        (d)  To
the knowledge of Seller, there have been no releases (i.e., any past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, disposing or dumping) by Seller or threatened releases by Seller of Hazardous Substances on, upon, into or from any of the Real Property in material violation of applicable
Environmental Laws. 

 
 

ARTICLE 4
  REPRESENTATIONS AND WARRANTIES OF BUYER    
  

        Buyer represents and warrants to Seller as follows: 

        4.1    Organization and Standing. Buyer is a corporation duly formed, validly existing and in good standing under the laws of
the State of Delaware. 

        4.2    Authorization and Binding Obligation. Buyer has all necessary power and authority to enter into and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement and all other documents required hereby have been duly executed and delivered by Buyer and
constitute valid and binding obligations enforceable against Buyer in accordance with their terms except as may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors'
rights generally or the availability of equitable remedies. 

        4.3    Absence of Conflicting Agreements or Required Consents. Except for the FCC Consent, a filing with the Federal Trade
Commission and the United States Justice Department under Hart-Scott-Rodino, if applicable, and the consents on Schedule 1.2(c), the execution, delivery and performance of this
Agreement by Buyer: (a) do not and will not violate any provision of Buyer's organizational 

8

 

documents; (b) do not and will not require the consent of any third party or governmental authority; (c) do not and will not violate any law, judgment, order, injunction, decree, rule,
regulation or ruling of
any governmental authority; and (d) do not and will not, either alone or with the giving of notice or the passage of time, or both, conflict with, constitute grounds for termination or
acceleration of or result in a breach of the terms, conditions or provisions of, or constitute a default under, any agreement, lease, instrument, license or permit to which Buyer is now subject. 

        4.4    Absence of Litigation. There is no claim, litigation, arbitration or proceeding pending or, to the best of Buyer's
knowledge, threatened, before or by any court, governmental authority or arbitrator, that seeks to enjoin or prohibit, that questions the validity of or that might materially hinder or impair Buyer's
performance of its obligations under this Agreement. 

        4.5    FCC Qualifications. To the best of Buyer's knowledge, Buyer is qualified under the Communications Act of 1934, as
amended, and the rules and regulations of the FCC to be the assignee of the FCC Licenses, it being understood that Buyer has a duty to ascertain what would cause it to lose such qualification. There
are no facts known to Buyer that would delay the consummation of the transactions contemplated by this Agreement. Buyer has no reason to believe that the FCC assignment contemplated hereby might be
challenged or might not be granted by the FCC in the ordinary course solely because of its qualifications. 

        4.6    Broker's Fees. Other than a payment due to Media Venture Partners, to be paid by Seller at the Closing, and a payment to
Star Media Group, to be paid by Buyer at the Closing, neither Buyer nor any person or entity acting on its behalf has agreed to pay a commission, finder's fee or similar payment in connection with
this Agreement or any matter related hereto to any person or entity, and no person or entity is entitled to any such payment from Buyer in connection with the transactions contemplated by this
Agreement. 

        4.7    Bankruptcy. No insolvency proceedings of any character, including, without limitation, bankruptcy, receivership,
reorganization, composition or arrangement with creditors, voluntary or involuntary, affecting Buyer or any of its affiliates are pending or threatened, and neither Buyer nor any of its affiliates has
made an assignment for the benefit of creditors or taken any action in contemplation of or which would constitute the basis for the institution of such insolvency proceedings. 

        4.8    Financial Qualifications. Buyer is financially qualified to consummate the transactions contemplated by this Agreement
and to certify to its financial qualifications on FCC Form 314. 

        4.9    Seller's Representations and Warranties. Buyer has not relied on or been induced to enter into this Agreement by any
statement, representation or warranty other than those expressly set forth in Article 3 of this Agreement. 

        4.10    Condition of Real and Personal Property. Prior to entering into this Agreement, Buyer has inspected the Real and
Personal Property and, assuming the accuracy of Seller's representations and
warranties set forth herein, is satisfied with its present condition, except that the transmitter site shall be free of all tenancies and occupants at the Closing. 

 
 

ARTICLE 5
  GOVERNMENTAL CONSENTS    
  

        5.1    FCC Application. 

        (a)  The
assignment of the FCC Licenses as contemplated by this Agreement is subject to the prior consent and approval of the FCC. Prior to the Closing, Buyer shall not
directly or indirectly control, supervise, direct, or attempt to control, supervise, or direct, the operations of the Station, and all such operations, including complete control and supervision of
all of the Station's programs, employees, and policies, shall be the sole responsibility of Seller until the Closing. 

9

 

        (b)  No
later than ten (10) days after the date of this Agreement, Buyer and Seller shall prepare and jointly file a complete and grantable FCC Application, and
the parties shall use reasonable efforts to cause the FCC to accept the FCC Application for filing as soon as practicable. Seller and Buyer shall thereafter prosecute the FCC Application in good faith
and with all reasonable diligence and otherwise use their best efforts to obtain the grant of the FCC Application as expeditiously as practicable; provided, however, that neither Seller nor Buyer
shall have any obligation to satisfy any complainant or the FCC by taking any steps which would have a material adverse effect upon Seller or Buyer or upon any affiliated entity, but neither the
expense nor inconvenience to a party of defending against a complainant or an inquiry by the FCC shall be considered a material adverse effect on such party. If the FCC Consent imposes any condition
on any party hereto, such party shall use its best efforts to comply with such condition; provided, however, that no party shall be required to comply with any condition that would have a material
adverse effect upon it or any affiliated entity. If rehearing, reconsideration or judicial review is sought by a third party or by the FCC on its own motion with respect to the FCC Consent, Buyer and
Seller shall vigorously oppose such efforts for rehearing, reconsideration or judicial review; provided, however, that nothing herein shall be construed to limit either party's right to terminate this
Agreement pursuant to Article 10 (Termination Rights). 

        (c)  All
FCC filing or grant fees with respect to the assignment of the FCC Licenses from Seller to Buyer shall be paid equally by Buyer and Seller. Each party shall
otherwise bear its own costs and expenses (including the fees and disbursements of its counsel) in connection with the preparation of the portion of the FCC Application to be prepared by it and in
connection with the processing and defense of the application. 

        5.2    Other Filings and Governmental Consents. Promptly following the execution of this Agreement, the parties shall prepare
and file with the appropriate governmental authorities any other requests for approval or waiver that are required from such governmental authorities in connection with the transactions contemplated
hereby and shall diligently and expeditiously prosecute, and shall cooperate fully with each other in the prosecution of, such requests for approval or waiver and all proceedings necessary to secure
such approvals and waivers. If applicable, the parties will comply with the filing and waiting period requirements of Hart-Scott-Rodino. Buyer shall pay the Hart-Scott-Rodino
filing fee. Each party shall bear its own costs and expenses in connection with the preparation of any filings, documents or requests to be prepared by it in order to obtain such governmental
consents, approvals or waivers and in connection with any prosecution or defense by it of such filings, documents or requests. 

 
 

ARTICLE 6
  COVENANTS    
  

        6.1    Conduct of Business.

        (a)  Affirmative Covenants. Between the date of this Agreement and the Closing Date; except as expressly permitted by this
Agreement or with the prior written consent of Buyer, which consent shall not be unreasonably withheld, Seller shall: 

        (i)    Comply
in all material respects with all laws applicable to Seller's use of the Station Assets and continue to operate and maintain the Station in conformity with the
Station Licenses, the Communications Act of 1934, as amended, and the rules and regulations of the FCC. 

        (ii)  Maintain
the Station Assets in customary repair, maintenance and condition. 

10

 

        (iii)  Use
reasonable efforts to obtain the consent of any third party necessary for the assignment to Buyer, without any material adverse change, of the contracts listed on
Schedule 1.2(c). 

        (iv)  Timely
make or provide all payments, services or other consideration due for the Assumed Contracts so that all payments required to be made as of the Closing Date will
have been paid, except for any amounts being contested by Seller in good faith. 

        (v)  Maintain
in full force and effect the Station Licenses and all other licenses, permits and authorizations relating to the Station and take any action necessary before
the FCC, including the preparation and prosecution of applications for renewal of the FCC Licenses, if necessary, to preserve such licenses in full force and effect without material adverse change. 

        (vi)  Maintain
insurance on the Station Assets. 

        (vii) To
the extent reasonably practicable, complete all obligations owing by Seller to advertisers under the Trade-Out Agreements (it being understood that the
balance of such obligations shall in no event exceed $20,000 as of the Closing Date). 

        (viii) To
the extent Seller may do so without penalty, terminate, or send notice of termination of, such of the Assumed Contracts as Buyer may request. 

        (b)  Negative Covenants. Between the date of this Agreement and the Closing Date, except as expressly permitted by this
Agreement or with the prior written consent of Buyer, which consent shall not be unreasonably withheld, Seller shall not: 

        (i)    Terminate,
modify or amend any Assumed Contract except as contemplated in Section 6.1(a)(viii). 

        (ii)  Create
any Lien on any of the Station Assets. 

        (iii)  Sell,
assign, lease or otherwise transfer or dispose of any of the material Station Assets now owned or hereafter acquired, except for assets consumed or disposed of
in the ordinary course of business. 

        6.2    Access. Between the date hereof and the Closing Date, Seller will afford Buyer reasonable access to the Station and its
assets. Buyer, at its sole expense, shall be entitled to make such engineering and other inspections of the Station Assets as Buyer may desire, so long as such inspection would not unreasonably
interfere with the operation of the Station. 

        6.3    No Inconsistent Action. Between the date of this Agreement and the Closing, each party shall use its reasonable efforts
to cause the fulfillment at the earliest practicable date of all of the conditions to the obligations of the other party to consummate the sale and purchase and shall take no actions which are
inconsistent with its obligations under this Agreement or that would materially hinder or delay the consummation of the transactions contemplated by this Agreement. In particular, neither party shall
take any action that would jeopardize the Station Licenses, result in its disqualification to hold the FCC Licenses or in any way delay grant of the FCC Application or consummation of the transactions
contemplated by this Agreement, and Buyer shall take no action which would impair its financial or other qualifications to consummate this transaction in accordance with its terms. Should either party
become aware of any such fact or circumstance, such party shall promptly inform the other. 

        6.4    Confidentiality.

        (a)  Buyer
and Seller shall each keep confidential all information obtained by it with respect to the other in connection with this Agreement, except where such information
is known through other lawful sources or where its disclosure is required in accordance with applicable law. If the transactions contemplated hereby are not consummated for any reason, Buyer and
Seller shall 

11

 

return to the other, without retaining a copy thereof in any medium whatsoever, any schedules, documents or other written information, including all financial information, obtained from the other in
connection with this Agreement and the transactions contemplated hereby. Except as is required for the consummation of the transaction contemplated by this Agreement, during the period from the date
hereof through the Closing Date, both Buyer and Seller shall also keep confidential the fact that the parties have entered into this Agreement and all other matters relating to this transaction. 

        (b)  Except
as required by the FCC in connection with the filing of the FCC Application, without the prior consent of both Buyer and Seller, there shall be no public
announcement relating to this Agreement. 

        6.5    Further Assurances. Seller and Buyer shall cooperate and take such actions, and execute such other documents, at the
Closing or subsequently, as may be reasonably requested by the other in order to carry out the provisions and purposes of this Agreement, including, for example, promptly advising each other of all
communications relevant to the transactions contemplated by this Agreement received from the FCC after the date of this Agreement and furnishing each other with copies of all such written
communications and summaries of all such oral communications. 

        6.6    Booster Site Application. Seller shall file with the FCC such booster site applications for the Station as Buyer
reasonably determines. Buyer will pay for any expenses arising from such applications. 

 
 

ARTICLE 7
  CONDITIONS PRECEDENT    
  

        7.1    To Buyer's Obligations. The obligations of Buyer hereunder are, at its option, subject to
satisfaction or waiver by Buyer (except for prior FCC consent), at or prior to the Closing Date, of each of the following conditions: 

        (a)  Representations, Warranties and Covenants. 

        (i)    All
representations and warranties made by Seller in this Agreement shall be true and correct in all material respects (except as otherwise expressly permitted by this
Agreement) on and as of the Closing Date as if made on and as of that date. 

        (ii)  All
of the terms, covenants and conditions to be complied with and performed by Seller under this Agreement on or prior to Closing Date shall have been complied with or
performed by Seller in all material respects. 

        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Buyer except those that are customary in the assignment of FM licenses. Seller shall have complied with any conditions imposed on it by the FCC Consent, and (solely in the event that a petition to
deny was filed in connection with the FCC Consent) the FCC Consent shall have become a Final Order (unless Buyer elects to waive the Final Order). 

        (c)  No Injunction. No order of any court or administrative agency shall be in effect which restrains or prohibits the
transactions contemplated by this Agreement in accordance with its terms. 

        (d)  Governmental Authorizations. Seller shall be the holder of all FCC Licenses, and there shall not have been any
modification of any Station License relating to the Station that could have an adverse effect on the Station or the conduct of the business and operations of the Station. No proceeding (other than
proceedings affecting the broadcasting industry generally) shall be pending which presents a substantial probability of revocation, failure to renew, suspension or materially adverse modification of
any FCC License. 

12

 

        (e)  Consents. Seller shall have obtained all necessary approvals and consents to the assignment to Buyer of each Assumed
Contract without any adverse change in the terms or conditions of such contracts. 

        (f)    Deliveries. Seller shall have made or stand willing to make all deliveries required under  Section 8.1. 

        (g)  Title Insurance. A title insurance company reasonably acceptable to Buyer shall be prepared to issue an owner's title
insurance policy in a standard ALTA form insuring Buyer's fee simple title to the Real Property, free and clear of all Liens, with liability limits in the amount of the purchase price of the Real
Property, subject only to the delivery of the documents, materials and funds described in Section 8.10, the recordation of the grant deed
referred to Section 8.1 and payment of the applicable title insurance premiums. 

        (h)  Hart-Scott-Rodino. If applicable, the parties shall have complied with the filing and waiting period
requirements of Hart-Scott-Rodino. 

        7.2    To Seller's Obligations. The obligations of Seller hereunder are, at its option, subject to satisfaction or waiver by
Seller (except for prior FCC Consent), at or prior to the Closing Date, of each of the following conditions: 

        (a)  Representations, Warranties and Covenants. 

        (i)    All
representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects (except as otherwise expressly permitted by this
Agreement) on and as of the Closing Date as if made on and as of that date. 

        (ii)  All
of the terms, covenants and conditions to be complied with or performed by Buyer under this Agreement on or prior to the Closing Date shall have been complied with
or performed by Buyer in all material respects. 

        (b)  FCC Consent. The FCC Consent shall have been obtained, without the imposition of any condition materially adverse to
Seller except those that are customary in the assignment of FM licenses. Buyer shall have complied with any conditions imposed on it by the FCC Consent, and (solely in the event that a petition to
deny was filed in connection with the FCC Consent) the FCC Consent shall have become a Final Order (unless Seller elects to waive the Final Order). 

        (c)  No Injunction. No order of any court or administrative agency shall be in effect which restrains or prohibits the
transactions contemplated by this Agreement in accordance with its terms. 

        (d)  Deliveries. Buyer shall have made or stand willing to make all the deliveries required under  Section 8.2 and shall have paid or stand willing to pay
the Purchase Price as provided in  Section 2.2. 

        (e)  Hart-Scott-Rodino. If applicable, the parties shall have complied with the filing and waiting period
requirements of Hart-Scott-Rodino. 

        (f)    Consent. All necessary approvals and consents to the assignment to Buyer of each Assumed Contract shall have been
obtained. 

13

 

 
 

ARTICLE 8
  DOCUMENTS TO BE DELIVERED AT THE CLOSING    
  

        8.1    Documents to be Delivered by Seller. At the Closing, Seller shall deliver to Buyer the following: 

        (a)  Copies
of resolutions of the board of directors and shareholders of Seller authorizing the execution, delivery and performance of this Agreement by Seller, and the
consummation of the transactions contemplated hereby, certified by a duly authorized officer of Seller as being true, correct and complete as of the Closing Date; 

        (b)  A
certificate, dated as of the Closing Date, executed by an officer of Seller, certifying that the closing conditions specified in  Section 7.1(a) have been satisfied; 

        (c)  Duly
executed instruments of conveyance and transfer, in form and substance reasonably satisfactory to Buyer, effecting the sale, transfer, assignment and conveyance of
the Station Assets to Buyer free and clear of all Liens, including, but not limited to, the following: 

        (i)    an
assignment of the FCC Licenses; 

        (ii)  bills
of sale for all Personal Property; 

        (iii)  a
grant deed for the Real Property; and 

        (iv)  an
assignment of Seller's rights under the Assumed Contracts; 

        (d)  A
copy of any instrument evidencing receipt of any of the required consents described in Section 7.1(e); 

        (e)  Opinions
of Seller's corporate counsel and FCC counsel dated as of the Closing Date, substantially in the form of Exhibits B and
C hereto, respectively; 

        (f)    A
joint notice to the Escrow Agent executed by Seller directing the Escrow Agent to pay the Escrow Deposit to Seller as part of the Purchase Price; and 

        (g)  Such
other documents, information, certificates and materials as may be required by this Agreement. 

        8.2    Documents to be Delivered by Buyer. At the Closing, Buyer shall deliver to Seller the following: 

        (a)  Copies
of resolutions of the managers, members, partners, board of directors and/or shareholders, as the case may be, of Buyer authorizing the execution, delivery and
performance of this Agreement by Buyer and the consummation of the transactions contemplated hereby; 

        (b)  A
certificate, dated as of the Closing Date, executed on behalf of Buyer by a duly authorized representative of Buyer, certifying that the closing conditions specified
in Section 7.2(a) have been satisfied; 

        (c)  The
Purchase Price in immediately available wire transferred federal funds as provided in Section 2.2 (including a
joint notice to the Escrow Agent executed by Buyer directing the Escrow Agent to pay the Escrow Deposit to Seller as part of the Purchase Price); 

        (d)  Such
other documents, information, certificates and materials as may be required by this Agreement; and 

        (e)  Opinions
of Buyer's counsel dated as of the Closing Date, substantially in the form of Exhibit D hereto. 

14

 

 
 

ARTICLE 9
  INDEMNIFICATION, SURVIVAL    
  

        9.1    Seller's Indemnities. From and after the Closing, Seller shall indemnify, defend, and hold
harmless Buyer and its affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person
claiming by or through any of them, from and against, and reimburse them for, all claims, damages, liabilities, losses, costs and expenses, including, without limitation, interest, penalties, court
costs and reasonable attorneys' fees and expenses, resulting from: 

        (a)  The
ownership or operation of the Station Assets prior to the Closing, including without limitation any liabilities arising under the Station Licenses or the Assumed
Contracts which relate to events occurring prior to the Closing; 

        (b)  Any
liabilities of Seller not assumed by Buyer under this Agreement, including without limitation any liabilities arising at any time under any contract or agreement not
included in the Assumed Contracts; 

        (c)  Any
untrue representation, breach of warranty or nonfulfillment of any covenant by Seller contained in this Agreement or in any certificate, document or instrument
delivered by Seller to Buyer under this Agreement; 

        (d)  Any
failure of Seller to comply with any "bulk sales" laws applicable to the transactions contemplated hereby; or 

        (e)  Any
actions, suits, proceedings, claims, demands, assessments, judgments, costs and expenses, including reasonable legal fees and expenses, incident to any of the
foregoing or incurred in
investigating or attempting to avoid the same or to oppose the imposition thereof, or in enforcing this indemnity. 

        9.2    Buyer's Indemnities. From and after the Closing, Buyer shall indemnify, defend and hold harmless Seller and its
affiliates and their respective members, managers, partners, directors, officers, employees, and representatives, and the successors and assigns of any of them, and any person claiming by or through
any of them, from and against, and reimburse them for, all claims, damages, liabilities, losses, costs and expenses, including, without limitation, interest, penalties, court costs and reasonable
attorneys' fees and expenses, resulting from: 

        (a)  any
untrue representation, breach of warranty or nonfulfillment of any covenant by Buyer contained in this Agreement or in any certificate, document or instrument
delivered by Buyer to Seller under this Agreement; 

        (b)  the
ownership or operation of the Station Assets from and after the Closing; 

        (c)  any
actions, suits, proceedings, claims, demands, assessments, judgments, costs and expenses, including reasonable legal fees and expenses, incident to any of the
foregoing or incurred in investigating or attempting to avoid the same or to oppose the imposition thereof, or in enforcing this indemnity; or 

        (d)  any
liability or obligations assumed by Buyer under this Agreement. 

        9.3    Procedure for Indemnification. The procedure for indemnification shall be as follows: 

        (a)  The
party seeking indemnification under this Article 9 (the "Claimant") shall give notice to the party from whom indemnification is sought (the "Indemnitor") of
any claim, reasonably specifying (i) the factual basis for the claim; and (ii) the amount of the claim if then known. If the claim relates to an action, suit or proceeding filed by a
third party against Claimant, notice shall be given by Claimant within fifteen (15) days after written notice of the action, suit or proceeding was 

15

 

given to Claimant. In all other circumstances, notice shall be given by Claimant within thirty (30) days after Claimant becomes aware of the facts giving rise to the claim. Notwithstanding the
foregoing, Claimant's failure to give Indemnitor timely notice shall not preclude Claimant from seeking indemnification from Indemnitor if Claimant's failure has not materially prejudiced Indemnitor's
ability to defend the claim or litigation. 

        (b)  The
Claimant shall make available to Indemnitor and/or its authorized representatives the information relied upon by the Claimant to substantiate the claim for
indemnity. 

        (c)  With
respect to any claim by a third party as to which the Claimant is entitled to indemnification hereunder, the Indemnitor shall defend against the claim with counsel
reasonably acceptable to Claimant, and the Claimant shall cooperate fully with the Indemnitor, subject to reimbursement for reasonable expenses incurred by the Claimant as the result of a request by
the Indemnitor. The Claimant shall have the right to participate in the defense of the claim at its own expense. If the Indemnitor does not assume control of the defense of any third party claim,
Claimant may, but shall have no obligation to, defend or settle such claim or litigation in such a manner as it deems appropriate, and in such event Indemnitor shall be bound by the results obtained
by the Claimant with respect to the claim (by default or otherwise) and shall promptly reimburse Claimant for the amount of all expenses (including the amount of any judgment rendered), legal or
otherwise, incurred in connection with such claim or litigation. The Indemnitor shall be subrogated to all rights of the Claimant against any third party with respect to any claim for which indemnity
was paid. 

        9.4    Limitations. Neither party shall be required to indemnify the other party under this Article 9 unless
(i) written notice of a claim under this Article 9 was received by the party within the pertinent survival period specified in  Section 9.5; and (ii) the aggregate amount of claims
against the party to which the other party (as a Claimant) is entitled to be
indemnified under this Agreement exceeds $25,000, after which the Claimant shall be entitled to recover, and the Indemnitor shall be obligated for, all losses, costs, liabilities, damages and expenses
for Claimant, including the first $25,000 of such losses. 

        9.5    Survival of Representations, Warranties and Covenants. The representations, warranties, covenants, indemnities and other
agreements contained in this Agreement or in any certificate, document or instrument delivered pursuant to this Agreement are and will be deemed and construed to be continuing representations,
warranties, covenants, indemnities and agreements and shall survive the Closing for a period of two (2) years (the "Survival Period"). No claim may be brought under this Agreement unless
written notice describing in reasonable detail the nature and basis of such claim is given on or prior to the last day of the Survival Period. In the event such notice is given, the right to
indemnification with respect thereto shall survive the Survival Period until such claim is finally resolved and any obligations thereto are fully satisfied. Any investigation by or on behalf of any
party hereto shall not constitute a waiver as to enforcement of any representation, warranty, covenant or agreement contained herein. 

 
 

ARTICLE 10
  TERMINATION RIGHTS    
  

        10.1    Termination. 

16

 

        (a)  In
addition to other available remedies, this Agreement may be terminated by either Buyer or Seller, if the party seeking to terminate is not in material default or
breach of this Agreement, upon written notice to the other if: 

        (i)    the
other party is in material breach of this Agreement and such breach has been neither cured within thirty (30) days after written notice of such breach nor
waived by the party giving such termination notice; 

        (ii)  a
court of competent jurisdiction or governmental, regulatory or administrative agency or commission shall have issued an order, decree or ruling or taken any other
action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and
nonappealable; or 

        (iii)  the
Closing has not occurred by a date that is nine (9) months from the date the FCC Application is accepted by the FCC for filing (the "Upset Date"); 

        (b)  This
Agreement may be terminated by mutual written consent of Buyer and Seller. 

        (c)  If
either party believes the other to be in breach or default of this Agreement, the non-defaulting party shall, prior to exercising its right to terminate
under Section 10.1(a)(i), provide the defaulting party with notice specifying in reasonable detail the nature of such breach or default. Except
for a failure to pay the Purchase Price, the defaulting party shall have thirty (30) days from receipt of such notice to cure such default; provided that, if the breach or default is due to no
fault of the defaulting party and is not capable of cure within such thirty (30) day period, the cure period shall be extended as long as the defaulting party is diligently and in good faith
attempting to effect a cure. Nothing in this Section 10.1(c) shall be interpreted to extend the Upset Date. 

        10.2    Effect of Termination. The following sections shall survive the termination of this Agreement pursuant to  Section 10.1(a): 6.4 (Confidentiality), 11.1
(Default by Seller), 11.2 (Default by Buyer; Liquidated Damages), 11.3 (Limitations on Damages),  12.3
(Entire Agreement; Schedules; Amendment; Waiver), 12.4 (Headings),  12.5 (Computation of Time), 12.6
(Governing Law; Waiver of Jury Trial),
12.7 (Attorneys' Fees), 12.9 (Notices), 12.10
(Counterparts) and 13.1 (Definitions). 

 
 

ARTICLE 11
  REMEDIES UPON DEFAULT    
  

        11.1    Default by Seller; Specific Performance. If Seller breaches or defaults in its obligations under
this Agreement, Buyer may pursue any remedies available to it. In the event of such breach of this Agreement by Seller, Buyer will incur substantial damages that are difficult to quantify.
Consequently, Seller agrees that Buyer shall be entitled, in the event of a default by Seller, to specific performance of any of the provisions of this Agreement in addition to any other legal or
equitable remedies to which it may otherwise be entitled 

        11.2    Default by Buyer; Liquidated Damages. If this Agreement is terminated by Seller prior to the Closing pursuant to  Section 10.1(a)(i) as
a result of a breach or default by Buyer of its representations, warranties, covenants or obligations hereunder, Buyer
shall pay the Escrow Deposit to Seller as liquidated damages, in full settlement of any damages of any kind or nature that Seller may suffer or allege to suffer as a result thereof, it being
understood and agreed that the amount of liquidated damages represents Buyer's and Seller's reasonable estimate of actual damages and does not constitute a penalty. In the event that Seller is
entitled to liquidated damages, the Escrow Deposit plus interest accruing after the date that Seller became entitled to liquidated damages shall be paid over to Seller in satisfaction of Buyer's
liability for liquidated damages under this Section 11.2, and all interest 

17

 

on the Escrow Deposit up until the date that Seller was entitled to liquidated damages shall be paid to Buyer. 

        11.3    Limitations on Damages. Notwithstanding the foregoing, neither party shall be liable to the other for special,
consequential, punitive or exemplary damages, and in no event shall Seller's total liability to Buyer under this Agreement (including, for example, Seller's liability to Buyer pursuant to
Section 9.1 (Seller's Indemnities)) exceed the amount of the Purchase Price received by Seller. 

 
 

ARTICLE 12
  OTHER PROVISIONS    
  

        12.1    Transfer Taxes and Expenses. All recordation, transfer, and documentary fees (but not including FCC fees or sales taxes,
if any) imposed on this transaction shall be paid one-half by Buyer and one-half by Seller. Sales taxes, if any, imposed in connection with the transactions contemplated by
this Agreement shall be paid one-half by Buyer and one-half by Seller. Seller shall pay the premium for the title insurance referred to in  Section 7.1(h). Except as otherwise provided in this
Agreement, each party shall be solely responsible for and shall pay all other costs and
expenses (including attorney and accounting fees) incurred by it in connection with the negotiation, preparation and performance of and compliance with the terms of this Agreement. 

        12.2    Benefit and Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns. Neither Buyer nor Seller may assign its rights under this Agreement without the prior written consent of the other; provided, however, that Buyer may assign
this Agreement to one or more of its wholly-owned subsidiaries so long as (i) such assignment does not result in any delay of the Closing and (ii) Hispanic Broadcasting Corporation
continues to remain liable hereunder for the obligations of the assignee(s). 

        12.3    Entire Agreement; Schedules; Amendment; Waiver. This Agreement and the exhibits and schedules hereto and thereto, embody
the entire agreement and understanding of the parties hereto and supersede any and all prior agreements, arrangements and understandings relating to the matters provided for herein. Any matter that is
disclosed in a schedule hereto shall be deemed to have been included in other pertinent schedules, notwithstanding the omission of an appropriate cross-reference. No amendment, waiver of compliance
with any provision or condition hereof or consent pursuant to this Agreement shall be effective unless evidenced by an instrument in writing signed by the party against whom enforcement of any waiver,
amendment or consent is sought. No failure or delay on the part of Buyer or Seller in exercising any right or power under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other
right or power. 

        12.4    Headings. The headings set forth in this Agreement are for convenience only and shall not control or affect the meaning
or construction of the provisions of this Agreement. 

        12.5    Computation of Time. If after making computations of time provided for in this Agreement, a time for action or notice
falls on Saturday, Sunday or a federal holiday, then such time shall be extended to the next business day. 

        12.6    Governing Law; Waiver of Jury Trial. The construction and performance of this Agreement shall be governed by the law of
the State of California without regard to its principles of conflicts of law. Any dispute which arises under or relates to this Agreement (whether in contract, tort or both) shall be resolved in the
United States District Court for the Northern District of California, or state court, at San Jose, California. By executing and delivering this Agreement, the parties submit to the jurisdiction of
such courts. BUYER AND SELLER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING 

18

 

RELATING IN ANY WAY TO THIS AGREEMENT, INCLUDING ANY COUNTERCLAIM MADE IN SUCH ACTION OR PROCEEDING, AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE DECIDED SOLELY BY A JUDGE. Buyer and Seller
hereby acknowledge that each has been represented by counsel in the negotiation, execution and delivery of this Agreement and that their lawyers have fully explained the meaning of the Agreement,
including in particular the jury-trial waiver. Any question of doubtful interpretation shall not be resolved by any rule providing for interpretation against the party who causes the
uncertainty to exist or against the drafter of this Agreement. 

        12.7    Attorneys' Fees. In the event of any dispute between the parties to this Agreement, Seller or Buyer, as the case may be,
shall reimburse the prevailing party for its reasonable attorneys' fees and other costs incurred in enforcing its rights or exercising its remedies under this Agreement. Such right of reimbursement
shall be in addition to any other right or remedy that the prevailing party may have under this Agreement. 

        12.8    Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall,
to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 

        12.9    Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and
shall be addressed to the following addresses or to such other address as any part may request: 

        If
to Seller: 

Robert
S. Kieve, President

Empire Broadcasting Corporation

P.O. Box 995

San Jose, CA 95108-0995

Fax: (408) 293-6124

kiev@empirebroadcasting.com 

        With
a copy to: 

David
W. Mitchell, Esq.

60 South Market Street, Suite 1400

San Jose, CA 95113

Fax: (408) 287-2583

E-Mail: dwm@hogefenton.com 

        and 

Jerome
S. Silber, Esq.

23 Wilmont Avenue

White Plains, NY 10605

Fax: (914) 428-0088

E-Mail: radiolaw21@aol.com 

        If
to Buyer: 

19

 

Hispanic
Broadcasting Corporation

3102 Oak Lawn Avenue, Suite 215

Dallas, Texas 75219

Attn: Jeffrey T. Hinson, Senior Vice President

Fax:    214-525-7750

E-mail: jhinson@hispanicbroadcasting.com 

        With
a copy to: 

Hallett &
Perrin

2001 Bryan St., Suite 3900

Dallas, Texas 75201

Attn: Bruce H. Hallett

Fax:    214-922-4170

E-mail: bhallett@hallettperrin.com 

Any
such notice, demand or request shall be deemed to have been duly delivered and received (a) on the date of personal delivery, (b) on the date of transmission if sent by facsimile,
(c) on the date of receipt if mailed by registered or certified mail, postage prepaid and return receipt requested, or (d) on the date of a signed receipt if sent by an overnight
delivery service. 

        12.10    Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original and
all of which together will constitute one and the same instrument. 

 
 

ARTICLE 13
  DEFINITIONS    
  

        13.1    Defined Terms. Unless otherwise stated in this Agreement, the following terms when used herein
shall have the meanings assigned to them below (such meanings to be equally applicable to both the singular and plural forms of the terms defined). 

        "Agreement"
shall mean this Asset Purchase Agreement. 

        "Assumed
Contracts" shall have the meaning set forth in Section 1.2(c). 

        "Buyer"
shall have the meaning set forth in the preamble to this Agreement. 

        "Claimant"
shall have the meaning set forth in Section 9.3. 

        "Closing"
shall have the meaning set forth in Section 1.1. 

        "Closing
Date" shall mean the date on which the Closing is completed. 

        "Code"
shall mean the Internal Revenue Code of 1986, as amended, and the regulations thereunder, or any subsequent legislative enactment thereof, as in effect from time to time. 

        "Compensation
Arrangement" means any plan or compensation arrangement other than an Employee Plan or a Multiemployer Plan, whether written or unwritten, which provides to employees or
former
employees of the Station any compensation or other benefits, whether deferred or not, in excess of base salary or wages, including, but not limited to, any bonus or incentive plan, stock rights plan,
deferred compensation arrangement, stock purchase plan, severance pay plan and any other employee fringe benefit plan. 

        "Employee
Plan" means any pension, retirement, profit-sharing, deferred compensation, vacation, severance, bonus, incentive, medical, vision, dental, disability, life insurance or any
other employee benefit plan as defined in Section 3(3) of ERISA (other than a Multiemployer Plan) to which Seller contributes or is bound or which Seller sponsors, or maintains. 

20

 

        "Escrow
Agent" shall mean Media Venture Partners, Ltd.. 

        "Escrow
Agreement" shall mean the agreement among Seller, Buyer and Escrow Agent substantially in the form attached hereto as  Exhibit A. 

        "Escrow
Deposit" shall have the meaning set forth in Section 2.2(a). 

        "FCC"
shall have the meaning set forth in the preamble to this Agreement. 

        "FCC
Application" shall mean the application or applications that Seller and Buyer must file with the FCC requesting its consent to the assignment of the FCC Licenses from Seller to
Buyer. 

        "FCC
Consent" shall mean the action by the FCC granting the FCC Application. 

        "FCC
Licenses" shall have the meaning set forth in Section 1.2(a).

        "Final
Order" shall mean action by the FCC with respect to the FCC Application (i) which has not been vacated, reversed, stayed, set aside, annulled or suspended, (ii) with
respect to which no timely appeal, request for stay or petition for rehearing, reconsideration or review by any party or by the FCC on its own motion is pending, and (iii) as to which the time
for filing any such appeal, request, petition or similar document or for the reconsideration or review by the FCC on its own motion under the Communications Act of 1934, as amended, has expired. 

        "Indemnitor"
shall have the meaning set forth in Section 9.3. 

        "Leased
Property" shall have the meaning set forth in Section 3.7(a). 

        "Liens"
shall mean mortgages, deeds of trust, liens, security interests, pledges, collateral assignments, condition sales agreements, leases, encumbrances, claims or other defects of
title, but shall not include (i) liens for current taxes not yet due and payable, (ii) other liens imposed by law (such as materialman's mechanic's, carrier's, worker's and repairman's
liens) arising in the ordinary course of business (provided that such liens do not interfere in any material respect with the use of the Station Assets as currently used and that Seller remains liable
for paying such liens), (iii) valid leases or subleases to third parties with respect to property not used in the operation of the Station, and which are listed on Schedule 1.2(h); and
(iv) in respect of the Real Property, defects in title or other matters that do not materially adversely affect the continued use of the Real Property as currently used by Seller. 

        "Material
Contracts" shall have the meaning set forth in Section 1.2(c). 

        "Other
Contracts" shall have the meaning set forth in Section 1.2(c). 

        "Personal
Property" shall have the meaning set forth in Section 1.2. 

        "Purchase
Price" shall have the meaning set forth in Section 2.1. 

        "Real
Property" shall have the meaning set forth in Section 1.2. 

        "Seller"
shall have the meaning set forth in the preamble to this Agreement. 

        "Station"
shall have the meaning set forth in the preamble to this Agreement. 

        "Station
Assets" shall mean the assets to be transferred to Buyer hereunder, as more fully specified in Section 1.2. 

        "Station
Licenses" shall have the meaning set forth in Section 1.2(a).

        "Survival
Period" shall have the meaning set forth in Section 9.5. 

        "Trade-Out
Agreements" shall have the meaning set forth in Section 1.2(i).

        "Upset
Date" shall have the meaning set forth in Section 10.1(a)(iii). 

21

 

        13.2.    Miscellaneous Terms. The term "or" is disjunctive; the term "and" is conjunctive. The term "shall" is mandatory; the
term "may" is permissive. Masculine terms apply to females as well as males; feminine terms apply to males as well as females. The term "includes" or "including" is by way of example and not
limitation. 

22

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Asset Purchase Agreement to be duly executed as of the date first written above. 

        SELLER:

        Empire
Broadcasting Corporation 

        By:
/s/ Robert S. Kieve 

      Robert S. Kieve, President 

        BUYER: 

        Hispanic
Broadcasting Corporation 

        By:
/s/ McHenry T. Tichenor, Jr. 

      McHenry T. Tichenor, President and CEO 

23

QuickLinks

ASSET PURCHASE AGREEMENT

ARTICLE 1 ASSETS TO BE CONVEYED

ARTICLE 2 PURCHASE PRICE

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER

ARTICLE 5 GOVERNMENTAL CONSENTS

ARTICLE 6 COVENANTS

ARTICLE 7 CONDITIONS PRECEDENT

ARTICLE 8 DOCUMENTS TO BE DELIVERED AT THE CLOSING

ARTICLE 9 INDEMNIFICATION, SURVIVAL

ARTICLE 10 TERMINATION RIGHTS

ARTICLE 11 REMEDIES UPON DEFAULT

ARTICLE 12 OTHER PROVISIONS

ARTICLE 13 DEFINITIONS

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