Document:

<PAGE>

                                                                    EXHIBIT 10.9

================================================================================

                              TERM LOAN AGREEMENT

                                     among

                         LCG ACQUISITION CORPORATION,

                          THE LENDERS PARTIES HERETO,

                           THE BANK OF NOVA SCOTIA,
                             as Syndication Agent,

                             FLEET NATIONAL BANK,
                            as Documentation Agent,

                                      and

                        UNION BANK OF CALIFORNIA, N.A.,
                                   as Agent

                          Dated as of April 20, 2000

================================================================================
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                                        Page
                                                                                        ----
<C>          <S>                                                                        <C>
SECTION 1.   DEFINITIONS..............................................................    1
      1.1    Defined Terms............................................................    1
      1.2    Other Definitional Provisions............................................   15

SECTION 2.   AMOUNT AND TERMS OF LOANS; COMMITMENT AMOUNTS............................   16
      2.1    Loans; Commitment Amounts................................................   16
      2.2    Optional Prepayments.....................................................   17
      2.3    Mandatory Prepayments....................................................   17
      2.4    Conversion and Continuation Options......................................   17
      2.5    Minimum Amounts of Tranches..............................................   18
      2.6    Interest Rates and Payment Dates.........................................   18
      2.7    Computation of Interest and Fees.........................................   19
      2.8    Inability to Determine Interest Rate.....................................   19
      2.9    Pro Rata Treatment and Payments..........................................   19
      2.10   Illegality...............................................................   20
      2.11   Increased Costs..........................................................   20
      2.12   Taxes....................................................................   21
      2.13   Indemnity................................................................   22
      2.14   Mitigation of Costs......................................................   23

SECTION 3.   REPRESENTATIONS AND WARRANTIES...........................................   23
      3.1    Organization and Good Standing...........................................   23
      3.2    Power and Authority......................................................   23
      3.3    Validity and Legal Effect................................................   23
      3.4    No Violation of Laws or Agreements.......................................   23
      3.5    Title to Assets; Existing Encumbrances; Intellectual and Real Property...   24
      3.6    Capital Structure and Equity Ownership...................................   24
      3.7    Subsidiaries, Affiliates and Investments.................................   24
      3.8    Material Contracts.......................................................   24
      3.9    Media Licenses...........................................................   25
      3.10   Taxes and Assessments....................................................   25
      3.11   Litigation and Legal Proceedings.........................................   25
      3.12   Accuracy of Financial Information........................................   26
      3.13   Accuracy of Other Information............................................   26
      3.14   Compliance with Laws Generally...........................................   26
      3.15   ERISA Compliance.........................................................   26
      3.16   Environmental Compliance.................................................   27
      3.17   Federal Regulations......................................................   28
      3.18   Fees and Commissions.....................................................   28
      3.19   Publishing Business......................................................   28
      3.20   Solvency.................................................................   28
      3.21   FCC-Related Representations..............................................   28
      3.22   Investment Company Act; Other Regulations................................   29
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<C>          <S>                                                                        <C>
      3.23   Copyright Act Requirements...............................................   29
      3.24   Nature of Business.......................................................   29
      3.25   Ranking of Loans.........................................................   30
      3.26   Condemnation.............................................................   30

SECTION 4.   CONDITIONS PRECEDENT.....................................................   30
      4.1    Conditions to Closing Date...............................................   30

SECTION 5.   AFFIRMATIVE COVENANTS....................................................   34
      5.1    Financial Statements.....................................................   34
      5.2    Certificates; Other Information..........................................   35
      5.3    Payment of Obligations...................................................   37
      5.4    Conduct of Business and Maintenance of Existence.........................   37
      5.5    Maintenance of Property; Insurance.......................................   37
      5.6    Inspection of Property; Books and Records; Discussions...................   38
      5.7    Environmental Laws.......................................................   38
      5.8    Use of Proceeds..........................................................   39
      5.9    Compliance With Laws, Etc................................................   39
      5.10   Media Licenses...........................................................   39
      5.11   Guarantees, Etc..........................................................   40
      5.12   License Subsidiary.......................................................   40
      5.13   Interest Rate Protection.................................................   40
      5.14   Leases and Licenses......................................................   40
      5.15   Lease and License Approvals..............................................   40
      5.16   Notices..................................................................   41
      5.17   Additional Material Contracts and Media Licenses.........................   41

SECTION 6.   NEGATIVE COVENANTS.......................................................   41
      6.1    Financial Condition Covenants............................................   41
      6.2    Limitation on Indebtedness...............................................   42
      6.3    Limitation on Liens......................................................   42
      6.4    Limitation on Fundamental Changes........................................   43
      6.5    Limitation on Sale of Assets.............................................   43
      6.6    Limitation on Dividends..................................................   43
      6.7    Limitation on Investments, Loans and Advances............................   44
      6.8    Limitation on Modifications of Certain Documents and Instruments.........   44
      6.9    Transactions with Affiliates.............................................   44
      6.10   Fiscal Year..............................................................   44
      6.11   Lease Obligations........................................................   44
      6.12   Unfunded Liabilities.....................................................   45
      6.13   Management Fees..........................................................   45
      6.14   Equity Offerings.........................................................   45

SECTION 7.   EVENTS OF DEFAULT........................................................   45

SECTION 8.   THE AGENT................................................................   50
      8.1    Appointment..............................................................   50
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<C>          <S>                                                                        <C>
      8.2    Delegation of Duties.....................................................   50
      8.3    Exculpatory Provisions...................................................   50
      8.4    Reliance by the Agent....................................................   50
      8.5    Notice of Default........................................................   51
      8.6    Non-Reliance on the Agent and Other Lenders..............................   51
      8.7    Indemnification..........................................................   52
      8.8    The Agent in Its Individual Capacity.....................................   52
      8.9    Successor Agent..........................................................   52

SECTION 9.   MISCELLANEOUS............................................................   52
      9.1    Amendments and Waivers...................................................   52
      9.2    Notices..................................................................   53
      9.3    No Waiver; Cumulative Remedies...........................................   54
      9.4    Survival of Representations and Warranties...............................   54
      9.5    Payment of Expenses and Taxes............................................   55
      9.6    Successors and Assigns; Participations; Purchasing Lenders...............   55
      9.7    Adjustments; Set-Off.....................................................   58
      9.8    Counterparts.............................................................   59
      9.9    Severability.............................................................   59
      9.10   Integration..............................................................   59
      9.11   GOVERNING LAW............................................................   59
      9.12   Alternative Dispute Resolution...........................................   59
      9.13   Acknowledgements.........................................................   60
      9.14   Headings.................................................................   61
      9.15   Copies of Certificates, Etc..............................................   61
      9.16   Publicity................................................................   61
      9.17   Confidentiality..........................................................   61
</TABLE>

                                     -iii-
<PAGE>

Exhibits

     A     Form of Note
     B     Form of Assignment and Acceptance
     C     Form of No Default/Representation Certificate
     D     Form of Covenant Compliance Certificate
     E     Form of Continuation Notice

Schedules

     3.1   Good Standing/Foreign Qualification Jurisdictions
     3.2   Missing Consents
     3.5A  Intellectual Property
     3.5B  Real Property Interests
     3.5C  Operating Names/Trade Names
     3.6   Capital Structure/Equity Ownership
     3.7   Subsidiaries, Affiliates and Investments
     3.8   Material Contracts
     3.9   Media Licenses
     3.10  Taxes and Assessments
     3.11  Material Litigation
     3.18  Fees and Commissions
     3.19  Publications
     3.21  Pending FCC Matters
     6.2   Permitted Additional Indebtedness
     6.7   Permitted Additional Investments

The registrant hereby agrees to furnish a copy of any omitted schedule or
exhibit upon request.

                                      -iv-
<PAGE>

                              TERM LOAN AGREEMENT
                              -------------------

     THIS TERM LOAN AGREEMENT, dated as of April 20, 2000, among (1) LCG
ACQUISITION CORPORATION, a Delaware corporation ("LCGAC"), (2) the several banks
                                                  -----
and other financial institutions from time to time parties to this Agreement
(the "Lenders") and (3) UNION BANK OF CALIFORNIA, N.A., as agent for the Lenders
      -------
hereunder (in such capacity, the "Agent").
                                  -----

                                    RECITALS
                                    --------

     A.   LCGAC, a direct wholly-owned subsidiary of Entravision Communications
Company, L.L.C., a Delaware limited liability company ("Entravision"), was
                                                        -----------
organized by Entravision to acquire Latin Communications Group Inc., a Delaware
corporation ("LCG").
              ---

     B.   Pursuant to the Agreement and Plan of Merger dated December 21, 1999
among Entravision, LCGAC, LCG and certain other parties (the "Merger
                                                              ------
Agreement"), LCGAC will merge with and into LCG (the "Merger"), and LCG will be
---------                                             ------
the surviving corporation.

     C.   LCGAC has requested that, simultaneously with the consummation of the
Merger, the Lenders lend to the Borrower (i) $105,000,000 to pay a portion of
the aggregate consideration to be paid by LCGAC in the Merger for outstanding
shares of LCG and (ii) $10,000,000 to pay a portion of the interest accruing
hereunder.  The Lenders have indicated their willingness to agree to lend such
amounts on the terms and conditions of this Agreement.

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

     SECTION 1.  DEFINITIONS

     1.1  Defined Terms.  As used in this Agreement, the following terms shall
          -------------
have the following meanings:

     "Accountants":  McGladrey & Pullen, LLP, or such other firm of independent
      -----------
certified public accountants of recognized national standing as shall be
selected by the Borrower and satisfactory to the Agent.

     "Affiliate":  as to any Person, (a) any other Person (other than a
      ---------
Subsidiary) which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Person or (b) any Person who is a
director, officer, shareholder or partner (i) of such Person, (ii) of any
Subsidiary of such Person or (iii) of any Person described in the preceding
clause (a).
<PAGE>

For purposes of this definition, "control" of a Person means the power, directly
or indirectly, either to (i) vote securities having 5% or more of the ordinary
voting power for the election of directors of such Person or (ii) direct or
cause the direction of the management and policies of such Person whether by
contract or otherwise.

     "Agent":  as defined in the preamble hereto.
      -----

     "Aggregate Commitment":  the sum of the Commitments set forth on the
      --------------------
signature pages hereto, as the same may be adjusted from time to time pursuant
to the provisions hereof.

     "Agreement":  this Term Loan Agreement, as amended, waived, supplemented or
      ---------
otherwise modified from time to time.

     "Applicable Lending Office":  for any Lender, its offices for LIBOR Loans
      -------------------------
and Base Rate Loans specified below its signature on the signature pages hereof
or in the Assignment and Acceptance pursuant to which it becomes a party hereto,
as the case may be, any of which offices may, upon 10 days' prior written notice
to the Agent and the Borrower, be changed by such Lender.

     "Applicable Margin": for each LIBOR Loan and for each Base Rate Loan as set
      -----------------
forth below:

<TABLE>
<CAPTION>
                   Period                     LIBOR Margin      Base Rate Margin
                   ------                     ------------      ----------------
     <S>                                      <C>               <C>
     Closing Date to and including
     August 17, 2000                              4.00%              3.00%
     August 18, 2000 to and including
     October 16, 2000                             4.25%              3.25%
     October 17, 2000 and thereafter              4.50%              3.50%
</TABLE>

; provided, however, that if the Entravision IPO is not consummated prior to
  --------  -------
September 30, 2000, each percentage listed in the table above shall
automatically increase by 0.25%, effective with respect to all interest accruing
on or after September 30, 2000.

     "Asset Disposition":  the sale, sale and leaseback, transfer, conveyance,
      -----------------
exchange, long-term lease accorded sales treatment under GAAP or similar
disposition (including by means of a merger, consolidation, amalgamation, joint
venture or other substantive combination) of any of the Properties, business or
assets (other than marketable securities, including "margin stock" within the
meaning of Regulation U, liquid investments and other financial instruments but,
including, without limitation, the assignment of any lease, license or permit
relating to the Properties) of the Borrower or any of its Subsidiaries to any
Person or Persons other than to the Borrower or any of its Subsidiaries;
provided that Asset Dispositions shall not include the sale in the ordinary
--------
course of business of equipment.

     "Assignment and Acceptance":  an Assignment and Acceptance in the form of
      -------------------------
Exhibit B to this Agreement.

                                      -2-
<PAGE>

     "Base Rate":  for any day, a rate per annum (rounded upwards, if necessary,
      ---------
to the next 1/16 of 1%) equal to the greater of (a) the Reference Rate in effect
on such day and (b) the Federal Funds Effective Rate in effect on such day plus
1/2 of 1%.  "Reference Rate" shall mean the rate of interest per annum publicly
             --------------
announced from time to time by Union Bank of California, N.A. as its "reference
rate" in effect at its office in Los Angeles, California.  "Federal Funds
                                                            -------------
Effective Rate" shall mean, for any day, the weighted average of the rates on
--------------
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average of the quotations for
the day of such transactions received by the Agent from three federal funds
brokers of recognized standing selected by it.  If, for any reason, the Agent
shall have determined (which determination shall be conclusive absent manifest
error) that it is unable to ascertain the Federal Funds Effective Rate for any
reason, including, without limitation, the inability or failure of the Agent to
obtain sufficient quotations in accordance with the terms hereof, the Base Rate
shall be determined without regard to clause (b) of the first sentence of this
definition until the circumstances giving rise to such inability no longer
exist.  Any change in the Base Rate due to a change in the Reference Rate or the
Federal Funds Effective Rate shall be effective on the effective date of such
change in the Reference Rate or the Federal Funds Effective Rate, respectively.

     "Base Rate Loans":  that portion of the Loans the rate of interest
      ---------------
applicable to which is based upon the Base Rate.

     "Borrower": prior to the Merger, LCGAC, and, from and after the Merger,
      ---------
LCG, as surviving corporation.

     "Business Day":  a day other than a Saturday, Sunday or other day on which
      ------------
commercial banks in the State of California are authorized or required by law to
close and which, in the case of a LIBOR Loan, is a Eurodollar Business Day.

     "Capitalized Lease Obligations":  obligations for the payment of rent for
      -----------------------------
any real or personal property under leases or agreements to lease that, in
accordance with GAAP, have been or should be capitalized on the books of the
lessee and, for purposes hereof, the amount of any such obligation shall be the
capitalized amount thereof determined in accordance with GAAP.

     "Capital Stock":  any and all shares, interests, participations or other
      -------------
equivalents (however designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation), any and
all warrants, options or rights to purchase, or any other securities convertible
into, any of the foregoing.

     "Cash Income Taxes":  cash income taxes paid by the Borrower and its
      -----------------
Subsidiaries during the fiscal quarter most recently ended and the immediately
preceding three fiscal quarters.

     "Change in Control":  either
      -----------------

     (a)   Entravision shall no longer be the owner of all of the Capital Stock
of the Borrower; or

                                      -3-
<PAGE>

     (b)   (i)  Walter F. Ulloa and Philip C. Wilkinson cease collectively to
have, directly or indirectly, Voting Control of Entravision; or

           (ii) So long as Entravision is a limited liability company, Walter F.
     Ulloa and Philip C. Wilkinson cease to (A) be the Managing Members thereof,
     (B) have the veto rights with regard to decisions of the Executive
     Committee set forth in Section 16(a)(i) of the Operating Agreement and (C)
     have the power to appoint the Executive Committee thereof.

     "Closing Date":  the date on which the conditions precedent set forth in
      ------------
Section 4.1 have been satisfied.

     "Code":  the Internal Revenue Code of 1986, as amended from time to time.
      ----

     "Collateral":  all of the property (tangible or intangible) purported to be
      ----------
subject to the lien or security interest purported to be created by any security
agreement, pledge agreement, assignment or other security document heretofore or
hereafter executed by the Borrower as security for all or part of the
Obligations.

     "Collateral Documents":  the Security Agreement, all notices of security
      --------------------
interests in deposit accounts requested by the Agent pursuant to the Security
Agreement, Form UCC-1 Financing Statements and amendments thereto and any other
document executed by the Borrower encumbering the Collateral or evidencing or
perfecting a security interest therein for the benefit of the Lenders.

     "Commitment Percentage":  with respect to each Lender, the percentage
      ---------------------
equivalent of the ratio which such Lender's Commitment bears to the Aggregate
Commitment, as such Lender's Commitment and the Aggregate Commitment may be
adjusted from time to time pursuant to the terms hereof, or, following
termination of the Aggregate Commitment, the percentage equivalent of the ratio
which such Lender's outstanding principal balance of Loans bear to the principal
balance of all Loans outstanding, excluding from such calculation Lenders which
have failed or refused to fund a Loan when required to do so.

     "Commitments":  as to any Lender, the amount listed as its "Commitment" on
      -----------
the signature pages hereto to make a term loan hereunder through its Applicable
Lending Office, as the same shall be adjusted from time to time pursuant to this
Agreement.

     "Commonly Controlled Entity":  as to any Person, an entity, whether or not
      --------------------------
incorporated, which is under common control with such Person within the meaning
of Section 4001 of ERISA or is part of a group which includes such Person and
which is treated as a single employer under Section 414 of the Code.

     "Communications Act":  the Communications Act of 1934, as amended, and the
      ------------------
rules, regulations and policies issued thereunder, as from time to time in
effect.

     "Continuation Notice":  a request for continuation or conversion of a Loan
      -------------------
as set forth in Section 2.4, substantially in the form of Exhibit E.

                                      -4-
<PAGE>

     "Contractual Obligation":  as to any Person, any provision of any security
      ----------------------
issued by such Person or of any agreement, instrument or other undertaking to
which such Person is a party or by which it or any of its property is bound.

     "Corporate Overhead": for any period, all general and administrative
      ------------------
expenses of the Borrower and its Subsidiaries for such period not solely
attributable to an individual Station or group of Stations or publication.  For
the purpose of illustration (and not for the purpose of limiting the foregoing),
Corporate Overhead shall include the general and administrative expenses of the
headquarters office of the Borrower, the salaries of its officers, lease
expenses for its headquarters office and the legal and accounting expenses
relating to the Borrower, and not relating solely to any Station, group of
Stations or publication.

     "Covenant Compliance Certificate":  a certificate of the Chief Financial
      -------------------------------
Officer of the Borrower substantially in the form of Exhibit D hereto.

     "Default":  any of the events specified in Section 7, whether or not any
      -------
requirement for the giving of notice, the lapse of time, or both, or any other
condition, has been satisfied.

     "Dollars" and "$":  dollars in lawful currency of the United States.
      -------       -

     "Entravision":  as defined in Recital A hereto.
      -----------

     "Entravision Credit Agreement":  that certain Amended and Restated Credit
      ----------------------------
Agreement dated as of November 10, 1998, as amended by the First Amendment to
Amended and Restated Credit Agreement dated as of December 29, 1999, the Second
Amendment to Amended and Restated Credit Agreement dated as of January 14, 2000,
and the Third Amendment to Amended and Restated Credit Agreement dated as of
April 20, 2000, and as it may be further amended, waived, supplemented or
otherwise modified from time to time, among (1) KSMS-TV, Inc., Tierra Alta
Broadcasting, Inc., Cabrillo Broadcasting Corporation, Golden Hills Broadcasting
Corporation, Las Tres Palmas Corporation, Valley Channel 48, Inc., Telecorpus,
Inc. and Entravision, (2) the lenders parties thereto and (3) Union Bank of
California, N.A., as agent for such lenders.

     "Entravision IPO":  the initial public offering of equity interests in
      ---------------
Entravision Communications Corporation, a Delaware corporation wholly owned by
Entravision.

     "Entravision License Subsidiary":  Entravision Holdings, LLC, a California
      ------------------------------
limited liability company, which is owned 99.999% by Entravision, 0.0005% by
Walter F. Ulloa and 0.0005% by Philip C. Wilkinson, formed solely for the
purpose of holding the Entravision Media Licenses.

     "Entravision Media Licenses":  any franchise, license, permit, certificate,
      --------------------------
ordinance, approval or other authorization, or any renewal or extension thereof,
from any federal, state or local government or governmental agency, department
or body that is necessary for the broadcast or other operations of Entravision
or any of its Subsidiaries (other than the Borrower and its Subsidiaries).

                                      -5-
<PAGE>

     "Entravision Station":  any radio station, any full power television
      -------------------
station, low power television station, any translator and any other television
system now or hereafter owned, leased or operated by Entravision or any of its
Subsidiaries (other than the Borrower and its Subsidiaries).

     "Environmental Control Statutes":  as defined in Section 3.16.
      ------------------------------

     "Equity Offering":  the sale or issuance (or reissuance) by the Borrower or
      ---------------
any Subsidiary of any equity interest (common stock, preferred stock,
partnership interests, member interests or otherwise) or any options, warrants,
convertible securities or other rights to purchase such beneficial or equity
interests.

     "Equityholder Agreements"  each shareholder agreement, member agreement,
      -----------------------
partner agreement, voting agreement, buy-sell agreement, option, warrant, put,
call, right of first refusal, and any other agreement or instrument with
conversion rights into equity of the Borrower or any Subsidiary either (a)
between the Borrower or any Subsidiary and any holder or prospective holder of
any equity interest of the Borrower or any Subsidiary (including interests
convertible into such equity) or (b) otherwise between any two or more such
holders of equity interests.

     "ERISA":  the Employee Retirement Income Security Act of 1974, as amended
      -----
from time to time.

     "ERISA Affiliate":  as to any Person, each trade or business including such
      ---------------
Person, whether or not incorporated, which together with such Person would be
treated as a single employer under Section 4001(a)(14) of ERISA.

     "Eurodollar Business Day":  shall mean any day on which banks are open for
      -----------------------
dealings in Dollar deposits in the London Interbank Market.

     "Event of Default":  any of the events specified in Section 7, provided
      ----------------                                              --------
that any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.

     "Excluded Taxes":  all taxes imposed on or by reference to the net income
      --------------
of the Agent or any Lender or its Applicable Lending Office by any Governmental
Authority and all franchise taxes, taxes on doing business or taxes measured by
capital or net worth imposed on the Agent or on any Lender or its Applicable
Lending Office by any Governmental Authority and any taxes imposed by any
Governmental Authority arising as a consequence of the failure of any Lender to
provide accurate documentation required to be provided by such Lender pursuant
to Section 2.12(b).

     "FCC":  the Federal Communications Commission or any successor thereto.
      ---

     "Federal Funds Effective Rate":  as defined in the definition of "Base
      ----------------------------                                     ----
Rate" contained in this Section 1.1.

     "Final Order":  an order, action or decision of the FCC that has not been
      -----------
reversed, stayed, enjoined, annulled or suspended and as to which (i) no timely
request for stay, appeal, petition

                                      -6-
<PAGE>

for reconsideration, application for review or reconsideration by the FCC on its
own motion is pending and (ii) the time for filing any such request, appeal,
petition or application, or for reconsideration by the FCC on its own motion,
has expired.

     "GAAP":  generally accepted accounting principles in the United States in
      ----
effect from time to time.  If, at any time, GAAP changes in a manner which will
materially affect the calculations determining compliance by the Borrower with
any of the covenants in Section 6.1, such covenants shall continue to be
calculated in accordance with GAAP in effect prior to such changes in GAAP.

     "Governmental Authority":  any nation or government, any federal, state or
      ----------------------
other political subdivision thereof and any federal, state or local entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

     "Guarantee Obligation":  as to any Person (the "guaranteeing person"), any
      --------------------                           -------------------
obligation of (a) the guaranteeing person or (b) another Person (including,
without limitation, any bank under any letter of credit) to induce the creation
of which the guaranteeing person has issued a reimbursement, counter-indemnity
or similar obligation, in either case guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the "primary obligations")
                                                           -------------------
of any other third Person (the "primary obligor") in any manner, whether
                                ---------------
directly or indirectly, including, without limitation, any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such primary
obligation or any property constituting direct or indirect security therefor,
(ii) to advance or supply funds for the purchase or payment of any such primary
obligation or to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such primary obligation or (iv) otherwise
to assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided, however, that the term Guarantee Obligation shall
                    --------  -------
not include endorsements of instruments for deposit or collection in the
ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lesser of (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated
or determinable, in which case the amount of such Guarantee Obligation shall be
such guaranteeing person's maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.

     "Guarantees":  the guarantees made by each of the Guarantors (which
      ----------
guarantees shall be nonrecourse except for any executed by a Subsidiary of the
Borrower), and all other guarantees executed by a Guarantor in favor of the
Agent for the benefit of the Lenders, in form and substance substantially
identical to those executed in connection with the Entravision Credit Agreement,
as the same may be amended or modified from time to time in accordance with the
terms hereof.

                                      -7-
<PAGE>

     "Guarantor Collateral":  all of the property (tangible or intangible)
      --------------------
purported to be subject to the lien or security interest purported to be created
by any security agreement, pledge agreement, assignment or other security
document heretofore or hereafter executed by any Guarantor as security for all
or part of the Obligations or the Guarantees.

     "Guarantor Collateral Documents":  the Guarantor Security Agreements, all
      ------------------------------
notices of security interests in deposit accounts requested by the Agent
pursuant to the Guarantor Security Agreements, Form UCC-1 Financing Statements
and amendments thereto and any other document executed by any Guarantor
encumbering the Guarantor Collateral or evidencing or perfecting a security
interest therein in favor of the Agent for the benefit of the Lenders.

     "Guarantor Security Agreements": each security agreement (which, in the
      -----------------------------
case of Walter F. Ulloa and Philip C. Wilkinson, shall be only with respect to
their equity interests in the Entravision License Subsidiary), in form and
substance substantially identical to those executed in connection with the
Entravision Credit Agreement, made by each Guarantor in favor of the Agent, for
the benefit of the Lenders, as the same may be amended from time to time in
accordance with the terms hereof.

     "Guarantors":  (i) each Subsidiary of the Borrower, (ii) Walter F. Ulloa,
      ----------
(iii) Philip C. Wilkinson, (iv) Entravision and (v) each Subsidiary of
Entravision other than the Borrower, including but not limited to the
Entravision License Subsidiary.

     "Indebtedness":  of any Person at any date, without duplication, (a) all
      ------------
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services (other than (i) current trade liabilities incurred
in the ordinary course of business and payable in accordance with customary
practices and (ii) current income taxes) or that is evidenced by a note, bond,
debenture or similar instrument, (b) all obligations of such Person under
Capitalized Lease Obligations, (c) all obligations of such Person in respect of
acceptances issued or created for the account of such Person, (d) all
liabilities secured by any Lien on any property owned by such Person even though
such Person has not assumed or otherwise become liable for the payment thereof,
(e) all obligations of such Person, whether absolute or contingent, in respect
of letters of credit opened for the account of such Person (other than any
letters of credit opened for the purpose of facilitating the purchase of goods
and services in the ordinary course of business and having a term of not more
than 360 days), (f) all obligations of such Person under Non-Compete Agreements
and (g) all Guarantee Obligations of such Person in respect of any indebtedness,
obligations or liabilities of any other Person of the type referred to in
clauses (a) through (f) of this definition.

     "Insolvency":  with respect to any Multiemployer Plan, the condition that
      ----------
such Plan is insolvent within the meaning of Section 4245 of ERISA.

     "Insolvent":  pertaining to a condition of Insolvency.
      ---------

     "Intellectual Property":  as defined in Section 3.5.
      ---------------------

     "Intercreditor Agreement":  the Intercreditor Agreement, in form and
      -----------------------
substance satisfactory to the Agent and the Lenders, between the Agent, on
behalf of the Lenders, and the

                                      -8-
<PAGE>

"Agent" under the Entravision Credit Agreement, on behalf of the lenders
thereunder, as amended, waived, supplemented or otherwise modified from time to
time.

     "Interest Expense":  for any specified period ended as of any specified
      ----------------
date, (A) the sum of (i) the amount of all interest on Total Debt which was
paid, payable and/or accrued for such period (without duplication of previous
amounts), (ii) all commitment fees paid, payable and/or accrued for such period
(without duplication of previous amounts) to any lender in exchange for such
lender's commitment to lend and (iii) net amounts payable (or receivable) under
all Interest Rate Agreements, less (B) all interest income.
                              ----

     "Interest Payment Date":  (a) as to any Base Rate Loan, the last day of
      ---------------------
each March, June, September and December to occur while the Loans are
outstanding, (b) as to any LIBOR Loan having an Interest Period of three months
or less, the last day of such Interest Period, (c) as to any LIBOR Loan having
an Interest Period longer than three months, each day which is at the end of
each three month-period within such Interest Period after the first day of such
Interest Period and the last day of such Interest Period and (d) for each of
(a), (b) and (c) above, on the day on which the Loans become due and payable in
full or are paid or prepaid in full.

     "Interest Period":  with respect to any LIBOR Loan:
      ---------------

     (a)  initially, the period commencing on the borrowing or conversion date,
as the case may be, with respect to such LIBOR Loan and ending one, two, three
or six months thereafter, as selected by the Borrower in its notice of borrowing
or Continuation Notice, as the case may be, given with respect thereto; and

     (b)  thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such LIBOR Loan and ending one, two,
three or six months thereafter, as selected by the Borrower by irrevocable
notice to the Agent not less than three Eurodollar Business Days prior to the
last day of the then current Interest Period with respect thereto;

provided that, all of the foregoing provisions relating to Interest Periods are
--------
subject to the following:

          (i)   if any Interest Period would otherwise end on a day that is not
a Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless the result of such extension would be to carry such Interest
Period into another calendar month in which event such Interest Period shall end
on the immediately preceding Business Day;

          (ii)  any Interest Period that would otherwise extend beyond the
Maturity Date shall end on the Maturity Date;

          (iii) any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall end on the last
Business Day of a calendar month; and

          (iv)  the Borrower shall select Interest Periods so as not to require
a payment or prepayment of any LIBOR Loan during an Interest Period.

                                      -9-
<PAGE>

     "Interest Rate Agreement":  any interest rate protection agreement,
      -----------------------
interest rate future, interest rate option, interest rate swap, interest rate
cap or other interest rate hedge or arrangement entered into pursuant to Section
5.13 with any Lender or any Affiliate of a Lender under which the Borrower is a
party or a beneficiary.

     "Interest Reserve Account":  a bank account to be established and
      ------------------------
maintained at Union Bank of California, N.A., Los Angeles, under the control of
the Agent, for the purpose of holding certain Loan proceeds to be used to pay
interest on the Loans until the funds in such account are exhausted or, if
earlier, the Obligations have been paid in full.

     "Investment Company Act":  as defined in Section 3.22.
      ----------------------

     "LCGAC": as defined in the preamble hereto.
      -----

     "LCG License Subsidiary":  LCG Holdings, L.L.C., a Delaware limited
      ----------------------
liability company, which is wholly-owned by the Borrower and was formed solely
for the purpose of holding Media Licenses and FCC files and records with respect
thereto.

     "Lenders":  as defined in the preamble hereto and Section 8.8 hereof.  When
      -------
used in any Collateral Document, Guarantee or Guarantor Collateral Document,
such term shall be deemed to include Affiliates of Lenders (and any Person that
was a Lender or an Affiliate of a Lender at the time of its entry into an
Interest Rate Agreement), to the extent the Borrower has Obligations to such
Person arising under an Interest Rate Agreement, it being understood that such
documents shall secure such Obligations ratably with all other Obligations.

     "LIBOR":  with respect to each day during each Interest Period pertaining
      -----
to a LIBOR Loan, the rate of interest determined by the Agent to be the rate per
annum at which deposits in dollars would be offered to the Agent by leading
banks in the London Interbank Market at or about 9:00 a.m., Los Angeles time,
two Eurodollar Business Days prior to the beginning of such Interest Period, for
delivery on the first day of such Interest Period for the number of days
comprised therein and in an amount comparable to the amount of its LIBOR Loan to
be outstanding during such Interest Period.

     "LIBOR Adjusted Rate":  with respect to each day during each Interest
      -------------------
Period pertaining to a LIBOR Loan, a rate per annum determined for such day in
accordance with the following formula (rounded upward to the nearest 1/100th of
1%):

                                      LIBOR
                      -----------------------------------
                       1.00 - LIBOR Reserve Requirements

     "LIBOR Loans":  that portion of the Loans the rate of interest applicable
      -----------
to which is based upon LIBOR.

     "LIBOR Reserve Requirements":  for any day as applied to a LIBOR Loan, the
      --------------------------
aggregate (without duplication) of the maximum rates (expressed as a decimal
fraction) of reserve requirements in effect on such day (including, without
limitation, basic, supplemental, marginal and emergency reserves under any
regulations of the Board of Governors of the Federal Reserve System or other
Governmental Authority having jurisdiction with respect thereto) dealing with

                                      -10-
<PAGE>

reserve requirements prescribed for eurocurrency funding (currently referred to
as "Eurocurrency Liabilities" in Regulation D of such Board) maintained by a
member bank of such Federal Reserve System.

     "Lien":  any mortgage, pledge, hypothecation, assignment, deposit
      ----
arrangement, encumbrance, lien (statutory or other), or preference, priority or
other security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title
retention agreement, any Capitalized Lease Obligation having substantially the
same economic effect as any of the foregoing, and the filing of any financing
statement under the Uniform Commercial Code or comparable law of any
jurisdiction in respect of any of the foregoing).

     "Loan" and "Loans":  collectively, each term loan made under Section
      ----       -----
2.1(a).

     "Loan Documents":  this Agreement, the Notes, the Collateral Documents, the
      --------------
Guarantor Collateral Documents, the Intercreditor Agreement, the Guarantees, any
Interest Rate Agreements, and the closing side letter referred to in Section
4.1(g) and any other agreement executed by an Obligor in connection therewith
and herewith including, but not limited to, UCC-1 Financing Statements, as such
agreements and documents may be amended, supplemented and otherwise modified
from time to time in accordance with the terms hereof.

     "Majority Lenders":  Lenders having Commitments equal to or more than 51%
      ----------------
of the Aggregate Commitment, or, following the termination of the Aggregate
Commitment, Lenders with outstanding Loans having an unpaid principal balance
equal to or more than 51% of the unpaid principal balance of all Loans
outstanding, excluding from such calculation Lenders which have failed or
refused to fund a Loan when required to do so.

     "Margin Stock":  as defined in Regulation U.
      ------------

     "Material Adverse Effect":  a material adverse effect on (a) the business,
      -----------------------
operations, property, condition or prospects (financial or otherwise) of the
Borrower and its Subsidiaries (taken as a whole) or Entravision and its
Subsidiaries (other than the Borrower and its Subsidiaries), taken as a whole,
(b) the ability of the Borrower and its Subsidiaries (taken as a whole) or
Entravision and its Subsidiaries (other than the Borrower and its Subsidiaries),
taken as a whole to perform their respective obligations under the Loan
Documents or (c) the validity or enforceability of the Loan Documents or the
rights or remedies of the Agent and the Lenders hereunder or thereunder.

     "Material Contracts":  as defined in Section 3.8.
      ------------------

     "Maturity Date": the earlier of (i) April 18, 2001 or such earlier date as
      -------------
the Loans shall mature (whether by acceleration or otherwise) and (ii)
consummation of the Entravision IPO.

     "Media Licenses":  any franchise, license, permit, certificate, ordinance,
      --------------
approval or other authorization, or any renewal or extension thereof, from any
federal, state or local government or governmental agency, department or body
that is necessary for the radio broadcasting operations of the Borrower or any
Subsidiaries.

                                      -11-
<PAGE>

     "Merger": as defined in the Recitals hereto.
      ------

     "Merger Agreement": as defined in the Recitals hereto.
      ----------------

     "Multiemployer Plan":  a plan which is a multiemployer plan as defined in
      ------------------
Section 4001(a)(3) of ERISA.

     "Net Income":  for the Borrower and its Subsidiaries on a consolidated
      ----------
basis, net income as determined in accordance with GAAP.

     "Non-Compete Agreements":  all agreements pursuant to which the Borrower or
      ----------------------
any Subsidiary has agreed to make payments (whether in cash or in kind) to
another Person for the agreement of such Person not to compete with the Borrower
or such Subsidiary in a given area.

     "Note":  as defined in Section 2.1(c).
      ----

     "Obligations":  the unpaid principal of and interest on (including, without
      -----------
limitation, interest accruing after the maturity of the Loans and interest
accruing on or after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding and whether or not at a default rate) the Notes,
all obligations of the Borrower to any Lender or Affiliate of a Lender (or any
Person that was a Lender or Affiliate of a Lender at the time of its entry into
an Interest Rate Agreement) arising under any Interest Rate Agreement, and all
other obligations and liabilities of the Borrower to the Agent and the Lenders,
whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement, the Notes, any other Loan Document and any other document
made, delivered or given in connection herewith or therewith, whether on account
of principal, interest, fees, indemnities, costs, expenses (including, without
limitation, all reasonable fees and disbursements of counsel, and the allocated
reasonable cost of internal counsel, to the Agent or the Lenders that are
required to be paid by the Borrower pursuant to the terms of this Agreement) or
otherwise.

     "Obligor":  the Borrower, LCG, each Subsidiary, each Guarantor and any
      -------
other Person (other than a Lender) obligated under any Loan Document.

     "Occupancy Agreements":  as defined in Section 5.14.
      --------------------

     "Operating Cash Flow":  for any specified period ended as of any specified
      -------------------
date, Net Income after eliminating extraordinary gains and losses, plus (i)
                                                                   ----
provisions for taxes, (ii) depreciation and amortization, (iii) Interest
Expense, (iv) permitted termination payments owing by the Borrower resulting
from early termination of a time brokerage agreement, local marketing agreement
or similar agreement, (v) operating losses from Stations KVBC-FM and KRNV-FM, to
the extent that such losses are incurred during the first twelve months of such
Stations being on the air, and (vi) other non-cash charges, all to the extent
deducted from the computation of Net Income, but after deducting, without
duplication, (A) non-cash revenues and (B) Corporate Overhead, all to the extent
included in the calculation of Net Income.

                                      -12-
<PAGE>

     "Organic Documents":  relative to any entity, its certificate and articles
      -----------------
of incorporation or organization, its by-laws or operating agreements, and all
Equityholder Agreements, voting agreements and similar arrangements applicable
to any of its authorized shares of capital stock, its partnership interests or
its member interests, and any other arrangements relating to the control or
management of any such entity (whether existing as corporation, a partnership, a
limited liability company or otherwise).

     "Participant":  as defined in Section 9.6(b).
      -----------

     "PBGC":  the Pension Benefit Guaranty Corporation established pursuant to
      ----
Subtitle A of Title IV of ERISA or any successor thereto.

     "Person":  any individual, firm, partnership, joint venture, corporation,
      ------
association, limited liability company, business enterprise trust,
unincorporated organization, government or department or agency thereof or other
entity, whether acting in an individual, fiduciary or other capacity.

     "Plan":  as to any Person, any plan (other than a Multiemployer Plan)
      ----
subject to Title IV of ERISA maintained for employees of such Person or any
ERISA Affiliate of such Person (and any such plan no longer maintained by such
Person or any of such Person's ERISA Affiliates to which such Person or any of
such Person's ERISA Affiliates has made or was required to make any
contributions within any of the five preceding years).

     "Program Services Agreements": any local marketing agreement, time
      ---------------------------
brokerage agreement, program services agreement or similar agreement providing
for the Borrower or its Subsidiaries (other than License Subsidiaries) to
program or sell advertising on all or any portion of the broadcast time of any
television or radio station.

     "Prohibited Transaction":  with respect to any Plan, a prohibited
      ----------------------
transaction (as defined in Section 406 of ERISA) with respect to such Plan.

     "Properties":  the collective reference to the real and personal property
      ----------
owned, leased, used, occupied or operated, under license or permit, by the
Borrower and its Subsidiaries.

     "Purchasing Lenders":  as defined in Section 9.6(c).
      ------------------

     "Register":  as defined in Section 9.6(d).
      --------

     "Regulation D":  Regulation D of the Board of Governors of the Federal
      ------------
Reserve System, as the same is from time to time in effect, and all official
rulings and interpretations thereunder or thereof and any successor regulation
thereto.

     "Regulation U":  Regulation U of the Board of Governors of the Federal
      ------------
Reserve System, as the same is from time to time in effect, and all official
rulings and interpretations thereunder or thereof and any successor regulation
thereto.

     "Reorganization":  with respect to any Multiemployer Plan, the condition
      --------------
that such plan is in reorganization within the meaning of Section 4241 of ERISA.

                                      -13-
<PAGE>

     "Reportable Event":  any of the events set forth in Section 4043(b) of
      ----------------
ERISA, other than those events as to which the thirty-day notice period is
waived under PBGC regulations.

     "Requirement of Law":  as to any Person, the Organic Documents of such
      ------------------
Person, and any law, treaty, rule or regulation, determination or policy
statement or interpretation of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

     "Responsible Officer":  with respect to any Person, the chief executive
      -------------------
officer, the president, the managing member or members (as applicable, with
respect to any limited liability company), any executive vice president, any
senior vice president or any vice president or, with respect to financial
matters, the chief financial officer, treasurer or controller.

     "Security Agreement":  the Security Agreement in form and substance
      ------------------
reasonably satisfactory to the Majority Lenders, made by the Borrower in favor
of the Agent, for the benefit of the Lenders, in respect of the tangible and
intangible personal property of the Borrower described therein, as the same may
be amended from time to time in accordance with the terms hereof.

     "Single Employer Plan":  any Plan which is covered by Title IV of ERISA,
      --------------------
but which is not a Multiemployer Plan.

     "Solvent":  when used with respect to any Person, that:
      -------

          (i)   the present fair salable value of such Person's assets is in
     excess of the total amount of the probable liability on such Person's
     liabilities;

          (ii)  such Person is able to pay its debts as they become due; and

          (iii) such Person does not have unreasonably small capital to carry on
     such Person's business as theretofore operated and all businesses in which
     such Person is about to engage.

     "Station":  any radio station now or hereafter owned, leased or operated by
      -------
the Borrower or any of its Subsidiaries.

     "Subsidiary":  as to any Person at any time of determination, a
      ----------
corporation, partnership or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other managers of
such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries or Subsidiaries, or both, by such Person.  Unless
otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in
this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

     "Taxes":  as defined in Section 2.12(a).
      -----

                                      -14-
<PAGE>

     "Termination Event":  (i) a Reportable Event, (ii) the institution of
      -----------------
proceedings to terminate a Single Employer Plan by the PBGC under Section 4042
of ERISA, (iii) the appointment by the PBGC of a trustee to administer any
Single Employer Plan or (iv) the existence of any other event or condition that
would reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment by the PBGC of a trustee to
administer, any Single Employer Plan.

     "Total Debt":  the aggregate principal amount of all Indebtedness
      ----------
(including Capitalized Lease Obligations) of the Borrower and its Subsidiaries.

     "Total Interest Coverage Ratio":  the ratio of Operating Cash Flow to
      -----------------------------
Interest Expense.

     "Tranche":  the collective reference to LIBOR Loans the Interest Periods
      -------
with respect to all of which begin on the same date and end on the same later
date (whether or not such LIBOR Loans shall originally have been made on the
same day).

     "Transferee":  as defined in Section 9.6(f).
      ----------

     "Type":  as to any Loan, its nature as a Base Rate Loan or a LIBOR Loan.
      ----

     "Univision":  as applicable, Univision Communications Inc., a Delaware
      ---------
corporation, or The Univision Network Limited Partnership, a Delaware limited
partnership.

     "Voting Control": (i) with respect to any corporation, the power to elect a
      --------------
majority of the board of directors of such corporation and (ii) with respect to
Entravision, ownership of a Majority in Interest (as defined in the Operating
Agreement) of each class of membership units of Entravision having voting power.

     1.2  Other Definitional Provisions.
          -----------------------------

     (a)  Unless otherwise specified therein, all terms defined in this
Agreement shall have the defined meanings when used in the Notes, any other Loan
Document or any certificate or other document made or delivered pursuant hereto
or thereto.

     (b)  As used herein, in the Notes, in any other Loan Document, and in any
certificate or other document made or delivered pursuant hereto or thereto,
accounting terms not defined in Section 1.1 and accounting terms partly defined
in Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

     (c)  The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, subsection,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.

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

                                      -15-
<PAGE>

     (e)  For the purpose of determining financial covenant compliance hereunder
for any period, divestitures and asset sales occurring during such period will
be included in the calculations for such period on a pro forma basis, and will
be deemed to have occurred on the first day of such period.

     SECTION 2.  AMOUNT AND TERMS OF LOANS; COMMITMENT AMOUNTS

     2.1  Loans; Commitment Amounts.
          -------------------------

     (a)  Subject to the terms and conditions hereof, each Lender severally
agrees to make a term loan through its Applicable Lending Office to the Borrower
on the Closing Date in accordance with the provisions of this Agreement in an
aggregate principal amount equal to the amount of the Commitment of such Lender.
After the making of such Loans, each Commitment, and the Aggregate Commitment,
shall terminate.

     (b)  Subject to Sections 2.8 and 2.10, the Loans may from time to time be
(i) LIBOR Loans, (ii) Base Rate Loans or (iii) a combination thereof, as
determined by the Borrower and notified to the Agent in accordance with either
Section 2.1(d) or 2.4. Each Lender may make or maintain its Loan to the Borrower
by or through any Applicable Lending Office.

     (c)  The Loan made by each Lender to the Borrower shall be evidenced by a
promissory note of the Borrower, substantially in the form of Exhibit A (a
"Note"), with appropriate insertions therein as to payee, date and principal
 ----
amount, payable to the order of such Lender and representing the obligations of
the Borrower to pay the aggregate unpaid principal amount of the Loan made by
such Lender to the Borrower in accordance with the terms of this Agreement, with
interest thereon as prescribed in Sections 2.6 and 2.7. Each Lender is hereby
authorized (but not required) to record the date and amount of each payment or
prepayment of principal of its Loan made to the Borrower, each continuation
thereof, each conversion of all or a portion thereof to another Type and, in the
case of LIBOR Loans, the length of each Interest Period with respect thereto, in
the books and records of such Lender, and any such recordation shall constitute
prima facie evidence of the accuracy of the information so recorded.  The
----- -----
failure of any Lender to make any such recordation or notation in the books and
records of the Lender (or any error in such recordation or notation) shall not
affect the obligations of the Borrower hereunder or under the Notes. Each Note
shall (i) be dated the Closing Date, (ii) provide for the payment of interest in
accordance with Sections 2.6 and 2.7 and (iii) be stated to be payable on the
Maturity Date.

     (d)  The Borrower shall give the Agent irrevocable written notice (which
notice must be received by the Agent prior to 10:00 A.M., Los Angeles time, one
Business Day prior to, or if all or any part of the Loans are requested to be
made as LIBOR Loans, three Eurodollar Business Days prior to, the Closing Date)
requesting that the Lenders make the Loans in accordance with their respective
Commitments on the Closing Date and specifying (i) subject to Section 2.1(b),
whether the Loans are to be LIBOR Loans, Base Rate Loans or a combination
thereof and (ii) if the Loans are to be entirely or partly LIBOR Loans, the
respective amounts of each such Type of Loan and the respective lengths of the
initial Interest Periods therefor. Upon receipt of such notice, the Agent shall
promptly notify each Lender thereof. Not later than 12:00 noon, Los Angeles time
on the Closing Date, each Lender shall make available to the Agent at its office

                                      -16-
<PAGE>

specified in Section 9.2 the amount of such Lender's Commitment in immediately
available funds. The Agent may, in the absence of notification from any Lender
that such Lender has not made its pro rata share available to the Agent, on such
date, credit the account of the Borrower on the books of such office of the
Agent with the aggregate amount of Loans.

     (e)  All outstanding Loans shall be due and payable, to the extent not
previously paid in accordance with the terms hereof, on the Maturity Date.

     (f)  Neither the Agent nor any Lender shall be responsible for the
obligation or Commitment of any other Lender hereunder, nor will the failure of
any Lender to comply with the terms of this Agreement relieve any other Lender
or the Borrower of its obligations under this Agreement and the Notes. Nothing
herein shall be deemed to relieve any Lender from its obligation to fulfill its
Commitment hereunder or to prejudice any rights which the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

     2.2  Optional Prepayments.  The Borrower may on the last day of any
          --------------------
Interest Period with respect thereto, in the case of LIBOR Loans, or at any time
and from time to time, in the case of Base Rate Loans, prepay the Loans, in
whole or in part, without premium or penalty, upon at least three Business Days'
irrevocable written notice, in the case of LIBOR Loans, and upon at least one
Business Day's irrevocable written notice, in the case of Base Rate Loans, from
the Borrower to the Agent, specifying the date and amount of prepayment and
whether the prepayment is of LIBOR Loans, Base Rate Loans or a combination
thereof, and, if of a combination thereof, the amount allocable to each. Amounts
prepaid may not be reborrowed. Upon receipt of any such notice from the
Borrower, the Agent shall promptly notify each Lender thereof. If any such
notice is given, the amount specified in such notice shall be due and payable by
the Borrower on the date specified therein, together with accrued interest to
such date on the amount prepaid. Partial prepayments of Loans shall be in an
aggregate principal amount of $1,000,000 and integral multiples of $250,000 in
excess thereof.

     2.3  Mandatory Prepayments.
          ---------------------

     (a)  If the Borrower or any of its Subsidiaries receives insurance proceeds
or condemnation proceeds with respect to any of their Properties that are not
fully applied (or contractually committed pursuant to contract(s) approved by
the Agent in its reasonable discretion) toward the repair or replacement of such
damaged or condemned Property within 90 days of the receipt thereof, the
Borrower shall, on such 90th day prepay the Loans in an amount equal to the
amount of such proceeds not so applied.

     (b)  Each prepayment of the Loans pursuant to this Section 2.3 shall be
accompanied by payment in full of all accrued interest to and including the date
of such prepayment, together with any additional amounts owing pursuant to
Section 2.13.

     2.4  Conversion and Continuation Options.
          -----------------------------------

     (a)  The Borrower may elect from time to time to convert LIBOR Loans to
Base Rate Loans, by the Borrower giving the Agent at least two Business Days'
prior irrevocable written notice of such election pursuant to a Continuation
Notice, provided that any such conversion of LIBOR Loans may only be made on the
last day of an Interest Period with respect thereto. The

                                      -17-
<PAGE>

Borrower may elect from time to time to convert Base Rate Loans to LIBOR Loans
by the Borrower giving the Agent at least three Eurodollar Business Days' prior
irrevocable written notice of such election pursuant to a Continuation Notice.
Any such notice of conversion to LIBOR Loans shall specify the length of the
initial Interest Period or Interest Periods therefor. Upon receipt of any such
notice, the Agent shall promptly notify each Lender thereof. All or any part of
outstanding LIBOR Loans and Base Rate Loans may be converted as provided herein,
provided that (i) any such conversion may only be made if, after giving effect
thereto, Section 2.5 shall not have been contravened, (ii) no Loan may be
converted into a LIBOR Loan after the date that is one month prior to the
Maturity Date and (iii) the Borrower shall not have the right to elect to
continue at the end of the applicable Interest Period, or to convert to, a LIBOR
Loan if a Default shall have occurred and be continuing.

     (b)  Any LIBOR Loan may be continued as such upon the expiration of the
then current Interest Period with respect thereto by the Borrower giving notice
to the Agent, in accordance with the applicable provisions of the term "Interest
Period" set forth in Section 1.1, of the length of the next Interest Period to
be applicable to such LIBOR Loan, provided that no LIBOR Loan may be continued
                                  --------
as such (i) if, after giving effect thereto, Section 2.5 would be contravened,
(ii) after the date that is one month prior to the Maturity Date or (iii) if a
Default shall have occurred and be continuing and provided, further, that if the
                                                  --------  -------
Borrower shall fail to give any required notice as described above in this
Section or if such continuation is not permitted pursuant to the preceding
proviso, such Loans shall be automatically converted to Base Rate Loans on the
last day of such then-expiring Interest Period.

     2.5  Minimum Amounts of Tranches.  All borrowings, conversions and
          ---------------------------
continuations of Loans hereunder and all selections of Interest Periods
hereunder shall be in such amounts and be made pursuant to such elections so
that, after giving effect thereto, the aggregate principal amount of the Loans
comprising each Tranche shall be equal to $1,000,000 or a whole multiple of
$100,000 in excess thereof and, in any case, there shall not be more than 12
Tranches.

     2.6  Interest Rates and Payment Dates.
          --------------------------------

     (a)  Each LIBOR Loan shall bear interest for each day during each Interest
Period with respect thereto at a rate per annum equal to the LIBOR Adjusted Rate
plus the Applicable Margin.

     (b)  Each Base Rate Loan shall bear interest at a rate per annum equal to
the Base Rate plus the Applicable Margin.

     (c)  If any Default shall have occurred and be continuing, all amounts
outstanding shall bear interest at a rate per annum which is the rate described
in paragraph (b) of this Section plus 2% from the date of the occurrence of such
Default until such Default is no longer continuing (after as well as before
judgment).

     (d)  Interest shall be payable in arrears on each Interest Payment Date,
provided that interest accruing pursuant to paragraph (c) of this Section shall
be payable on demand.

                                      -18-
<PAGE>

     (e)  If and so long as funds are available in the Interest Reserve Account,
the Agent shall deduct funds from the Interest Reserve Account, and shall
distribute such funds pro rata to the Lenders, to pay interest due and payable
on the Loans.

     2.7  Computation of Interest and Fees.
          --------------------------------

     (a)  Interest on Base Rate Loans (other than Base Rate Loans based on the
Federal Funds Effective Rate) shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed, and interest on
LIBOR Loans and all other Obligations of the Borrower shall be calculated on the
basis of a 360-day year for the actual days elapsed. The Agent shall as soon as
practicable notify the Borrower and the Lenders of each determination of a LIBOR
Adjusted Rate. Any change in the interest rate on a Loan resulting from a change
in the Base Rate or the LIBOR Reserve Requirements shall become effective as of
the opening of business on the day on which such change in the Base Rate is
announced or such change in the LIBOR Reserve Requirements becomes effective, as
the case may be. The Agent shall as soon as practicable notify the Borrower and
the Lenders of the effective date and the amount of each such change in interest
rate.

     (b)  Each determination of an interest rate by the Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error.

     2.8  Inability to Determine Interest Rate.  In the event that prior to the
          ------------------------------------
first day of any Interest Period:

     (a)  the Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower absent manifest error) that, by reason
of circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the LIBOR Adjusted Rate for such Interest Period, or

     (b)  the Agent shall have received notice from the Majority Lenders acting
in good faith that the LIBOR Adjusted Rate determined or to be determined for
such Interest Period will not adequately and fairly reflect the cost to such
Lenders (as conclusively certified by such Lenders) of making or maintaining
their affected Loans during such Interest Period, the Agent shall give telecopy
or telephonic notice thereof to the Borrower and the Lenders as soon as
practicable thereafter. If such notice is given (x) any LIBOR Loans requested to
be made on the first day of such Interest Period shall accrue interest at the
Base Rate, (y) Loans that were to have been converted on the first day of such
Interest Period to LIBOR Loans shall be continued as Base Rate Loans and (z) any
outstanding LIBOR Loans shall be converted, on the first day of such Interest
Period, to Base Rate Loans. Until such notice has been withdrawn by the Agent,
no further LIBOR Loans shall be made or continued as such, nor shall the
Borrower have the right to convert Base Rate Loans to LIBOR Loans.

     2.9  Pro Rata Treatment and Payments.  The borrowing by the Borrower from
          -------------------------------
the Lenders hereunder shall be made pro rata according to the respective
Commitment Percentages of the applicable Lenders. Each payment (including each
prepayment) by the Borrower on account of principal of and interest on the Loans
shall be made pro rata according to the respective

                                      -19-
<PAGE>

outstanding principal and interest amounts of the Loans then held by the
Lenders. All payments (including prepayments) to be made by the Borrower
hereunder and under the Notes, whether on account of principal, interest, fees
or otherwise, shall be made without set off or counterclaim and shall be made
prior to 12:00 noon, Los Angeles time, on the due date thereof to the Agent, for
the account of the applicable Lenders, at the Agent's office specified in
Section 9.2, in Dollars and in immediately available funds. The Agent shall
distribute such payments to the applicable Lenders promptly upon receipt in like
funds as received. If any payment hereunder (other than payments on the LIBOR
Loans) becomes due and payable on a day other than a Business Day, such payment
shall be extended to the next succeeding Business Day, and, with respect to
payments of principal, interest thereon shall be payable at the then applicable
rate during such extension. If any payment on a LIBOR Loan becomes due and
payable on a day other than a Eurodollar Business Day, the maturity thereof
shall be extended to the next succeeding Eurodollar Business Day (and interest
shall continue to accrue thereon at the applicable rate) unless the result of
such extension would be to extend such payment into another calendar month, in
which event such payment shall be made on the immediately preceding Eurodollar
Business Day.

     2.10 Illegality.  Notwithstanding any other provision herein, if any change
          ----------
after the Closing Date in any Requirement of Law or in the interpretation or
application thereof shall make it unlawful for any Lender or Applicable Lending
Office to make or maintain LIBOR Loans as contemplated by this Agreement, (a)
the commitment of such Lender hereunder to make LIBOR Loans, continue LIBOR
Loans as such and convert Base Rate Loans to LIBOR Loans shall forthwith be
suspended during such period of illegality and (b) the Loans of such Lender or
Applicable Lending Office then outstanding as LIBOR Loans, if any, shall be
converted automatically to Base Rate Loans on the respective last days of the
then current Interest Periods with respect to such Loans or within such earlier
period as required by law. If any such conversion of a LIBOR Loan occurs on a
day which is not the last day of the then current Interest Period with respect
thereto, the Borrower shall pay to such Lender such amounts, if any, as may be
required pursuant to Section 2.13. To the extent that a Lender's LIBOR Loans
have been converted to Base Rate Loans pursuant to this Section 2.10, all
payments and prepayments of principal that otherwise would be applied to such
Lender's LIBOR Loans shall be applied instead to its Base Rate Loans.

     2.11 Increased Costs.
          ---------------

     (a)  In the event that any change after the Closing Date in any Requirement
of Law or in the interpretation or application thereof or compliance by any
Lender with any request or directive (whether or not having the force of law
but, if not having the force of law, generally applicable to and complied with
by banks and financial institutions of the same general type as such Lender in
the relevant jurisdiction) from any central bank or other Governmental Authority
made subsequent to the date hereof:

          (i)  shall impose, modify or hold applicable any reserve, special
     deposit, compulsory loan or similar requirements against assets held by,
     letters of credit or guarantees issued by, deposits or other liabilities in
     or for the account of, advances, loans or other extensions of credit by, or
     any other acquisition of funds by, any office of such

                                      -20-
<PAGE>

     Lender or Applicable Lending Office which is not otherwise included in the
     determination of the LIBOR Adjusted Rate hereunder; or

          (ii) shall impose on such Lender or Applicable Lending Office any
     other condition;

and the result of any of the foregoing is to increase the cost to such Lender or
Applicable Lending Office, by an amount which such Lender deems to be material,
of making, converting into, continuing or maintaining LIBOR Loans or to reduce
any amount receivable hereunder in respect thereof then, in any such case, the
Borrower shall immediately pay to the Agent, on behalf of such Lender or
Applicable Lending Office, as applicable, upon the request of such Lender any
additional amounts necessary to compensate such Lender for such increased cost
or reduced amount receivable.  If any Lender or any Applicable Lending Office
becomes entitled to claim any additional amounts pursuant to this Section, it
shall promptly notify the Borrower, through the Agent, of the event by reason of
which it has become so entitled.  A certificate as to any additional amounts
payable pursuant to this Section submitted by such Lender or Applicable Lending
Office, through the Agent, to the Borrower shall be conclusive evidence of the
accuracy of the information so recorded, absent manifest error.  The obligations
of the Borrower under this Section 2.11(a) shall survive the termination of this
Agreement and the payment of the Loans, the Notes and all other amounts payable
hereunder.

     (b)  If, after the date of this Agreement, the introduction of or any
change in any applicable law, rule, regulation or guideline regarding capital
adequacy, or any change in the interpretation or administration thereof by any
Governmental Authority charged with the interpretation or administration
thereof, affects the amount of capital required or expected to be maintained by
any Lender or any corporation controlling any Lender, and such Lender (taking
into consideration such Lender's or such corporation's policies with respect to
capital adequacy) determines that the amount of capital maintained by such
Lender or such corporation, which is attributable to or based upon the Loans,
the Commitments or this Agreement, must be increased as a consequence of such
introduction or change by an amount deemed by such Lender to be material, then,
upon demand of the Agent at the request of such Lender, the Borrower shall
immediately pay to the Agent on behalf of such Lender, additional amounts
sufficient to compensate such Lender or such corporation for the increased costs
to such Lender or corporation of such increased capital. Any such demand shall
be accompanied by a certificate of such Lender setting forth in reasonable
detail the computation of any such increased costs, which certificate shall be
conclusive, absent manifest error. The obligations of the Borrower under this
Section 2.11(b) shall survive the termination of this Agreement and the payment
of the Loans, the Notes and all other amounts payable hereunder.

     2.12 Taxes.
          -----

     (a)  All payments made by the Borrower in respect of the Obligations shall
be made free and clear of, and without deduction or withholding for or on
account of, any present or future income, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any Governmental Authority or any
political subdivision or taxing authority thereof or therein, other than
Excluded Taxes (all such non-Excluded Taxes being hereinafter called "Taxes").
If any

                                      -21-
<PAGE>

Taxes are required to be withheld from any amounts payable to the Agent or any
Lender in respect of the Obligations, the amounts so payable to the Agent or
such Lender shall be increased to the extent necessary to yield to the Agent or
such Lender (after payment of all Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this Agreement and
the Notes. The Agent or a Lender, as the case may be, shall deliver to the
Borrower a certificate in good faith setting forth the amount of such Taxes, the
calculation of such Taxes and an explanation of the requirement therefor, all in
reasonable detail and such certificate shall be conclusive, absent manifest
error. Whenever any Taxes are payable by the Borrower, as promptly as possible
thereafter, the Borrower shall send to the Agent, for its own account or for the
account of such Lender, as the case may be, a copy of an original official
receipt received by the Borrower showing payment thereof or such other evidence
of payment reasonably satisfactory to the Agent. If the Borrower fails to pay
any Taxes when due to the appropriate taxing authority or fails to remit to the
Agent the required receipts or other required documentary evidence, the Borrower
shall indemnify the Agent and the Lenders for any incremental taxes, interest or
penalties (and related reasonable fees and expenses of counsel) that may become
payable by the Agent or any Lender as a result of any such failure. The
agreements in this Section shall survive the termination of this Agreement and
the payment of the Notes and all other amounts payable hereunder.

     (b)  Each Lender that is not organized under the laws of the United States
of America or a state thereof agrees that it will deliver to the Borrower and
the Agent (i) two duly completed copies of United States Internal Revenue
Service Form W-9, W-8BEN or W-8ECI (as applicable to it) or successor applicable
form. Each such Lender also agrees to deliver to the Borrower and the Agent two
further copies of the said Form W-9, W-8BEN or W-8ECI (as applicable to it), or
successor applicable forms or other manner or certification, as the case may be,
on or before the date that any such form expires or becomes obsolete or after
the occurrence of any event requiring a change in the most recent form
previously delivered by it to the Borrower and the Agent, and such extensions or
renewals thereof as may reasonably be requested by the Borrower or the Agent,
unless in any such case an event beyond the control of such Lender (including,
without limitation, any change in treaty, law or regulation) has occurred prior
to the date on which any such delivery would otherwise be required, which
renders all such forms inapplicable or which would prevent such Lender from duly
completing and delivering any such form with respect to it, and such Lender so
advised the Borrower and the Agent. Each such Lender shall certify pursuant to
such Forms that it is entitled to receive payments under this Agreement and the
Notes without deduction or withholding of any United States federal income
taxes.

     2.13 Indemnity.  The Borrower agrees to indemnify each Lender and to hold
          ---------
each Lender harmless from and to pay each Lender within 5 Business Days of such
Lender's demand the amount of any liability, loss or expense arising from the
reemployment of funds obtained by it or from fees payable to terminate the
deposits from which such funds were obtained (including reasonable fees and
expenses of counsel) which such Lender may sustain or incur as a consequence of
(a) default by the Borrower in payment when due of the principal amount of or
interest on any LIBOR Loan, (b) default by the Borrower in making a borrowing
of, conversion into or continuation of LIBOR Loans after the Borrower has given
a notice requesting the same in accordance with the provisions of this
Agreement, (c) default by the Borrower in making any prepayment after the
Borrower has given a notice thereof in accordance with the provisions of this
Agreement or (d) the making by the Borrower of a prepayment or conversion of
LIBOR

                                      -22-
<PAGE>

Loans on a day which is not the last day of an Interest Period with respect
thereto. A Lender's certificate as to such liability, loss or expense shall be
deemed conclusive, absent manifest error. This covenant shall survive the
termination of this Agreement and the payment of the Notes and all other amounts
payable hereunder.

     2.14 Mitigation of Costs.  If any Lender, by changing its Applicable
          -------------------
Lending Office or taking any other reasonable action, so long as making such
change or taking such other action is not disadvantageous to it in any
financial, regulatory or other respect, can mitigate any adverse effect on the
Borrower under Section 2.8, 2.10, 2.11, or 2.12, such Lender shall take such
action.

     SECTION 3.  REPRESENTATIONS AND WARRANTIES

     To induce the Lenders to enter into this Agreement and to make the Loans,
the Borrower hereby represents and warrants to the Agent and each Lender, such
representations to be given, with respect to the Closing Date, both before and
after the consummation of the Merger, that:

     3.1  Organization and Good Standing.  The Borrower and each Subsidiary (a)
          ------------------------------
is duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization, (b) has all requisite power and authority
(corporate, partnership, limited liability company and otherwise) to own its
properties and to conduct its business as now conducted and as currently
proposed to be conducted and (c) is duly qualified to conduct business as a
foreign organization and is currently in good standing in each state and
jurisdiction in which it conducts business. Each state and jurisdiction in which
the Borrower or any Subsidiary is organized or is (or should be) qualified to
conduct business is listed on Schedule 3.1 hereto.

     3.2  Power and Authority.  The Borrower has all requisite power and
          -------------------
authority under applicable law and under its Organic Documents to consummate the
Merger and to borrow hereunder. The Borrower and each Subsidiary has all
requisite power and authority under applicable law and under its Organic
Documents to execute, deliver and perform the obligations under the Loan
Documents to which it is a party. Except as disclosed on Schedule 3.2 hereto,
all actions, waivers and consents (corporate, regulatory and otherwise)
necessary or appropriate for the Borrower and each Subsidiary to execute,
deliver and perform the Loan Documents to which it is a party and for the
Borrower to consummate the Merger have been taken and/or received. Except as
provided in Section 4.1(r)(i), all applicable waiting periods in connection with
the Merger and the other transactions contemplated hereby have expired without
any action having been taken by any competent authority restraining, preventing
or imposing materially adverse conditions upon the Merger or the rights of the
Borrower of its Subsidiaries freely to transfer or otherwise dispose of, or to
create any Lien on, any properties now owned or hereafter acquired by any of
them.

     3.3  Validity and Legal Effect.  This Agreement constitutes, and the other
          -------------------------
Loan Documents to which the Borrower or any Subsidiary is a party, constitute
(or will constitute when executed and delivered), the legal, valid and binding
obligations of the Borrower and each Subsidiary enforceable against it in
accordance with the terms thereof.

     3.4  No Violation of Laws or Agreements.  The execution, delivery and
          ----------------------------------
performance of the Loan Documents, (a) will not violate or contravene any
Requirement of Law, (b) will not

                                      -23-
<PAGE>

result in any material breach or violation of, or constitute a material default
under, any agreement or instrument by which the Borrower, any Subsidiary or any
of its respective properties may be bound, and (c) will not result in or require
the creation of any Lien (other than pursuant to the Loan Documents) upon or
with respect to any properties of the Borrower or any Subsidiary, whether such
properties are now owned or hereafter acquired.

     3.5  Title to Assets; Existing Encumbrances; Intellectual and Real
          -------------------------------------------------------------
Property.  The Borrower and each Subsidiary has good and marketable title to all
--------
of its real and personal properties and assets, free and clear of any Liens,
except the security interests granted to the Agent for the benefit of the
Lenders under the Loan Documents. Schedule 3.5A hereto lists each trademark,
service mark, copyright, patent, database, customized application software and
systems integration software, trade secret and other intellectual property
owned, licensed, leased, controlled or applied for by the Borrower or any
Subsidiary (the "Intellectual Property"). To the Borrower's knowledge, no claim
                 ---------------------
has been asserted and is pending by any Person challenging or questioning the
use of any such Intellectual Property or the validity or effectiveness of any
such Intellectual Property, nor does the Borrower know of any valid basis for
any such claim.  To the Borrower's knowledge, the use of such Intellectual
Property by the Borrower and its Subsidiaries does not infringe on the rights of
any Person, nor, to the Borrower's knowledge, does the use by other Persons of
such Intellectual Property infringe on the rights of the Borrower and its
Subsidiaries.  Schedule 3.5B hereto lists each real property interest and
license owned, leased or otherwise used by the Borrower or any Subsidiary,
together with relevant identifying information describing, among other things,
the location and use of each such real property interest or license, whether
such interest is owned or leased.  Each such property and asset is in good order
and repair (ordinary wear and tear excepted) and is fully covered by the
insurance required under the Loan Documents.  Each such property and asset owned
by the Borrower is titled in the current legal name of the Borrower.  Each such
property and asset owned by any Subsidiary is titled in the current legal name
of such Subsidiary.  The Borrower has not, and no Subsidiary has, used (or
permitted the filing of any financing statement under) any legal or operating
name at any time during the twelve consecutive calendar months immediately
preceding the execution of this Agreement, except as identified on Schedule 3.5C
hereto.

     3.6  Capital Structure and Equity Ownership.  Schedule 3.6 hereto
          --------------------------------------
accurately and completely discloses (a) the number of shares and classes of
equity ownership rights and interests of the Borrower (whether existing as
common or preferred stock or warrants, options or other instruments convertible
into such equity) and (b) the ownership thereof. All such shares and interests
are validly existing, fully paid and non-assessable. There are no Equityholder
Agreements with respect to the Borrower or any Subsidiary.

     3.7  Subsidiaries, Affiliates and Investments.  Schedule 3.7 hereto
          ----------------------------------------
accurately and completely discloses (a) each Subsidiary and Affiliate of the
Borrower (other than its officers and directors) and (b) each investment in or
loan to any other Person by the Borrower or any Subsidiary.

     3.8  Material Contracts.  Schedule 3.8 hereto accurately and completely
          ------------------
discloses each contract and agreement material to the financial condition or
operation of the Borrower or any Subsidiary (each, a "Material Contract," and
                                                      -----------------
collectively, the "Material Contracts"). The Borrower has not, and no Subsidiary
                   ------------------
has, committed any unwaived breach or default under any

                                      -24-
<PAGE>

Material Contract, and the Borrower has no knowledge or reason to believe that
any other party to any Material Contract has or might have committed any
unwaived breach or default thereof. Each of the Material Contracts is a legal,
valid and binding obligation of the Borrower and Subsidiary party thereto,
enforceable in accordance with its terms. The Agent has received a complete and
correct copy of each of the Material Contracts (including in each case all
exhibits, schedules and disclosure letters referred to therein or delivered
pursuant thereto, if any) and all amendments thereto and other side letters or
agreements affecting the terms thereof.

     3.9  Media Licenses.  The Borrower and each Subsidiary have obtained, and
          --------------
are holding through the Entravision License Subsidiary or the LCG License
Subsidiary, all Media Licenses necessary or required in the conduct of their
respective businesses and/or the operation of their respective properties. Each
Media License is valid, binding and enforceable on, against and by the Borrower
or such Subsidiary, as applicable. Each Media License is subsisting without any
defaults thereunder or enforceable adverse limitations thereon, and no Media
License is subject to any proceedings or claims opposing the issuance, renewal,
development or use thereof or contesting the validity thereof. Schedule 3.9
hereto accurately and completely lists each material Media License directly or
indirectly owned by the Borrower (including, whether or not otherwise
"material", each Media License issued by the FCC, and further including all
pending applications and renewals therefor), together with relevant identifying
information describing such Media License. With respect to each FCC license
listed on Schedule 3.9 hereto, the description shall include, among other
things, the call sign, frequency, location, file number, issuance date (original
or most recent renewal), and expiration date.

     3.10 Taxes and Assessments.  Except as disclosed on Schedule 3.10 hereto,
          ---------------------
the Borrower and each Subsidiary has timely filed all required tax returns and
reports (federal, state and local) or has properly filed for extensions of the
time for the filing thereof. The Borrower has no knowledge of any deficiency,
penalty or additional assessment due or appropriate in connection with any such
taxes. All taxes (federal, state and local) imposed upon the Borrower or any
Subsidiary or any of its properties, operations or income have been paid and
discharged prior to the date when any interest or penalty would accrue for the
nonpayment thereof, except for those taxes being contested in good faith by
appropriate proceedings diligently prosecuted and with adequate reserves
reflected on the financial statements in accordance with GAAP (all as also
disclosed on Schedule 3.10 hereto). There are no taxes imposed on the Borrower
or its Subsidiaries by any political subdivision or taxing authority due or
payable either on or by virtue of the execution and delivery by the Borrower,
the Agent, or the Lenders of this Agreement or any other Loan Document to which
the Borrower or its Subsidiaries are party, or on any payment to be made by the
Borrower pursuant hereto or thereto.

     3.11 Litigation and Legal Proceedings.  Except as disclosed on Schedule
          --------------------------------
3.11 hereto, there is no litigation, claim, investigation, administrative
proceeding, labor controversy or similar action that is pending or, to the best
of the Borrower's knowledge and information after due inquiry, threatened,
except as set forth in the following clauses (i) and (ii), (i) against the
Borrower, any Subsidiary or any Property that, if adversely resolved, could have
a Material Adverse Effect, (ii) with respect to any Loan Document or the
transactions contemplated thereby or (iii) with respect to the legality,
validity or enforceability of the Merger.

                                      -25-
<PAGE>

     3.12 Accuracy of Financial Information.
          ---------------------------------

     (a)  All information previously furnished to the Agent and the Lenders
concerning the financial condition and operations of LCGAC and LCG, including
(i) a balance sheet of LCGAC dated the Closing Date showing no assets or
liabilities of LCGAC and (ii) the audited consolidated and consolidating
financial statements of LCG as of December 31, 1999, (A) have been prepared in
accordance with GAAP consistently applied, (B) are true, accurate and complete
in all material respects, (C) fairly present the financial condition of the
organizations covered thereby as of the dates and for the periods covered
thereby and (D) disclose all material liabilities (contingent and otherwise) of
LCGAC and LCG, respectively.

     (b)  (i) With respect to the balance sheet delivered pursuant to Section
3.12(a), since the Closing Date there has been no event or condition resulting
in a Material Adverse Effect and (ii) with respect to the audited financial
statements delivered pursuant to Section 3.12(a), since December 31, 1999 there
has been no event or condition resulting in a Material Adverse Effect.

     3.13 Accuracy of Other Information.  All information contained in any
          -----------------------------
material application, schedule, report, certificate, or any other document given
to the Agent or any Lender by the Borrower or any other Person in connection
with the Loan Documents is in all material respects true, accurate and complete,
and no such Person has omitted to state therein (or failed to include in any
such document) any material fact or any fact necessary to make such information
not misleading. All projections given to the Agent or any Lender by the Borrower
or any other Person on behalf of the Borrower have been prepared with a
reasonable basis and in good faith making use of such information as was
available at the date such projection was made. The projections and pro forma
financial information contained in such materials are based upon good faith
estimates and assumptions believed by the Borrower to be reasonable at the time
made and as of the Closing Date, it being recognized that such projections as to
future events are not to be viewed as facts and that actual results during the
period or periods covered by any such projections may differ from the projected
results.

     3.14 Compliance with Laws Generally.  The Borrower and each Subsidiary is
          ------------------------------
in compliance in all material respects with all Requirements of Law applicable
to it, its operations and its properties.

     3.15 ERISA Compliance.
          ----------------

     (a)  The Borrower and each Subsidiary is in compliance in all material
respects with all applicable provisions of ERISA, and all rules, regulations and
orders implementing ERISA.

     (b)  None of the Borrower, any Subsidiary or any ERISA Affiliate thereof
maintains or contributes to (or has maintained or contributed to) any
Multiemployer Plan under which the Borrower, any Subsidiary or any ERISA
Affiliate thereof could have any withdrawal liability.

     (c)  None of the Borrower, any Subsidiary or any ERISA Affiliate thereof
sponsors or maintains any defined benefit pension plan under which there is an
accumulated funding deficiency within the meaning of Section 412 of the Code,
whether or not waived.

                                      -26-
<PAGE>

     (d)  The liability for accrued benefits under each defined benefit pension
plan that will be sponsored or maintained by the Borrower, any Subsidiary or any
ERISA Affiliate thereof (determined on the basis of the actuarial assumptions
utilized by the PBGC) does not exceed the aggregate fair market value of the
assets under each such defined benefit pension plan.

     (e)  The aggregate liability of the Borrower, each Subsidiary and each
ERISA Affiliate thereof arising out of or relating to a failure of any employee
benefit plan within the meaning of Section 3(2) of ERISA to comply with
provisions of ERISA or the Code will not have a Material Adverse Effect.

     (f)  There does not exist any unfunded liability (determined on the basis
of actuarial assumptions utilized by the actuary for the plan in preparing the
most recent annual report) of the Borrower, any Subsidiary or any ERISA
Affiliate thereof under any plan, program or arrangement providing post-
retirement, life or health benefits.

     (g)  No Reportable Event and no Prohibited Transaction (as defined in
ERISA) has occurred or is occurring with respect to any plan with which the
Borrower or any Subsidiary is associated.

     3.16 Environmental Compliance.
          ------------------------

     (a)  The Borrower and each Subsidiary has received all permits and filed
all notifications necessary under and is otherwise in compliance in all material
respects with all federal, state and local laws, rules and regulations governing
the control, removal, storage, transportation, spill, release or discharge of
hazardous or toxic wastes, substances and petroleum products, including, without
limitation, as provided in the provisions of and the regulations under (i) the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended by the Superfund Amendment and Reauthorization Act of 1986, (ii) the
Solid Waste Disposal Act, (iii) the Clean Water Act and the Clean Air Act, (iv)
the Hazardous Materials Transportation Act, (v) the Resource Conservation and
Recovery Act of 1976 and (vi) the Federal Water Pollution Control Act Amendments
of 1972 (all of the foregoing enumerated and non-enumerated statutes, including
without limitation any applicable state or local statutes, all as amended,
collectively, the "Environmental Control Statutes").
                   ------------------------------

     (b)  The Borrower has not, and no Subsidiary has, given any written or oral
notice to the Environmental Protection Agency ("EPA") or any state or local
                                                ---
agency with regard to any actual or imminently threatened removal, storage,
transportation, spill, release or discharge of hazardous or toxic wastes,
substances or petroleum products either (i) on properties owned or leased by the
Borrower or such Subsidiary or (ii) otherwise in connection with the conduct of
its business and operations.

     (c)  The Borrower has not, and no Subsidiary has, received notice that it
is potentially responsible for costs of clean-up of any actual or imminently
threatened spill, release or discharge of hazardous or toxic wastes or
substances or petroleum products pursuant to any Environmental Control Statute.

     (d)  No judicial proceedings or governmental or administrative action is
pending, or, to the knowledge of the Borrower, threatened, under any
Environmental Control Statute to which

                                      -27-
<PAGE>

the Borrower or any of its Subsidiaries is named as a party with respect to the
Properties or the business conducted at the Properties, nor are there any
consent decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Control Statute with respect to the Properties or such business.

     3.17 Federal Regulations.  No part of the proceeds of any Loans are
          -------------------
intended to be or will be used, directly or indirectly for any purpose which
violates the provisions of the Regulations of the Board of Governors of the
Federal Reserve System. If requested by any Lender or the Agent, and in any
event upon consummation of any acquisition involving the purchase of stock by
the Borrower or any Subsidiary, the Borrower will furnish to the Agent and each
Lender a statement to the foregoing effect in conformity with the requirements
of Form U-1 referred to in Regulation U.

     3.18 Fees and Commissions.  Except as disclosed on Schedule 3.18 hereto or
          --------------------
as required by the letter referred to in Section 4.1(g), the Borrower does not
and will not owe, and no Subsidiary owes or will owe, any fees or commissions of
any kind in connection with this Agreement or the transactions contemplated
hereby, and the Borrower does not know of any claim (or any basis for any claim)
for any fees or commissions in connection with this Agreement or such
transactions.

     3.19 Publishing Business.  The Borrower and each Subsidiary possess all
          -------------------
licenses necessary or required in the conduct of its publishing businesses
and/or the operation of its properties used in connection with such businesses.
Each license is valid, binding and enforceable on, against and by the Borrower
or such Subsidiary, as applicable. Each license is subsisting without any
defaults thereunder or enforceable adverse limitations thereon, and no such
license is subject to any proceedings or claims opposing the issuance, renewal,
development or use thereof or contesting the validity thereof. Each publication
owned or operated by the Borrower or any Subsidiary is listed on Schedule 3.19.

     3.20 Solvency.  Immediately prior to and upon the execution of this
          --------
Agreement and the funding of the Loans on the Closing Date, the Borrower and
each Guarantor was, is and will be Solvent.

     3.21 FCC-Related Representations.  Without limiting the generality of the
          ---------------------------
foregoing representations and warranties, the Borrower further represents and
warrants as follows:

     (a)  Except as described on Schedule 3.21 hereto, there is no outstanding
or unresolved (i) application by the Borrower or any Subsidiary for any Media
License or by the Entravision License Subsidiary for any Entravision Media
License, including any renewal of any Media License or Entravision Media
License, (ii) to the best of the Borrower's knowledge, material complaint to the
FCC regarding the Borrower, any Subsidiary, the Entravision License Subsidiary,
any Media License or any Entravision Media License, (iii) litigation,
investigation or other inquiry by or before the FCC involving the Borrower, any
Subsidiary, the Entravision License Subsidiary, any Media License or any
Entravision Media License, or (iv) FCC enforcement proceeding against the
Borrower, any Subsidiary, the Entravision License

                                      -28-
<PAGE>

Subsidiary, any Media License or any Entravision Media License, including
without limitation, any notice of violation, any notice of apparent liability
for forfeiture, or any forfeiture.

     (b)  The Media Licenses identified on Schedule 3.9 hereto constitute all of
the Media Licenses required by the Communications Act for the operation of the
Borrower's and each Subsidiary's business as it is currently being operated.
Each such Media License is validly outstanding and effective and has been
renewed by the FCC without condition for a full term in accordance with the
Communications Act. There are no modifications, amendments or revocations
(pending or, to the best knowledge of the Borrower after due inquiry,
threatened) that could materially and adversely affect the operations or
financial condition of the Borrower, any Subsidiary or any Station. After due
inquiry, the Borrower does not know of any reason why the FCC would not
routinely grant, for a full term and without condition, the application by the
Borrower , any Subsidiary or the Entravision License Subsidiary, as applicable,
for the renewal of each Media License and Entravision Media License over which
the FCC has jurisdiction, when and as such application shall become due to be
filed with the FCC.

     (c)  Except as described on Schedule 3.21 hereto, after due inquiry, the
Borrower does not know of any application currently pending before, or to be
filed with, the FCC, the grant of which application would result in the
authorization of a new or modified station whose authorized transmissions would
materially and impermissibly interfere with any of the operations, signals,
transmission or receptions of the Borrower or its Subsidiaries (as such
impermissible interference is described in the FCC's rules, regulations and
policies, including, without limitation, the FCC's rules relating to Receiver
Induced Third Order Intermodulation Effect, Blanketing, Antenna Separation,
Desired-to-Undesired Signal Ratios, and Prohibited Contour Overlap).

     3.22 Investment Company Act; Other Regulations.  The Borrower is not, and
          -----------------------------------------
no Subsidiary is, an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended (the "Investment Company Act").
                 ----------------------

     3.23 Copyright Act Requirements.  The Borrower and each Subsidiary has
          --------------------------
recorded or deposited with and paid to the United States Copyright Office, the
Registrar of Copyrights, the Patent and Trademark Office, the American Society
of Composers, Authors and Publishers, Broadcast Music, Inc. and/or any other
licensors of copyrighted materials, all notices, statements of account, royalty
fees and other documents and instruments required under the terms and conditions
of any patent, trademark, service mark, trade name and copyright used in the
operation of a Station and/or the Copyright Act of 1976, as amended from time to
time, and the rules and regulations promulgated thereunder and, except as
disclosed in writing to the Agent, is not liable in a material amount to any
Person for copyright infringement under any law, rule, regulation, contract or
license as a result of its business operation.

     3.24 Nature of Business.  The Borrower is not, and no Subsidiary is,
          ------------------
engaged in any material business other than the ownership and operation of
Spanish-language radio stations, a Spanish-language radio network, Spanish-
language newspapers and other Spanish-language print publications.

                                      -29-
<PAGE>

     3.25 Ranking of Loans.  This Agreement and the other Loan Documents to
          ----------------
which the Borrower is party, when executed, and the Loans, when borrowed are and
will be the direct and general obligations of the Borrower. The Borrower's
obligations hereunder and thereunder rank and will rank at least pari passu in
                                                                 ---- -----
priority of payment to all other Indebtedness of the Borrower and its
Subsidiaries.

     3.26 Condemnation.  To the Borrower's knowledge, no taking of any of the
          ------------
Properties or any part thereof through eminent domain, conveyance in lieu
thereof, condemnation or similar proceeding is pending or, to the knowledge of
the Borrower, threatened by any Governmental Authority.

     SECTION 4.  CONDITIONS PRECEDENT

     4.1  Conditions to Closing Date.  The agreement of each Lender to make the
          --------------------------
Loans requested to be made by it on the Closing Date is subject to the
satisfaction, immediately prior to or concurrently with the making of such Loans
on the Closing Date, of the following conditions precedent:

     (a)  Merger.  (i) The Merger shall have been consummated in accordance with
          ------
the terms of the Merger Agreement, without any waiver or amendment not consented
to by the Agent, and the Agent shall have received a certificate of a
Responsible Officer of the Borrower to the effect that all material transactions
contemplated by the Merger Agreement to be consummated on or prior to the
Closing Date have been consummated without any such waiver or amendment;

          (ii)  The Agent shall have received a copy of the certificate of
merger filed with the Delaware Secretary of State evidencing the consummation of
the Merger;

          (iii) The Agent shall have received evidence, in form and substance
satisfactory to the Agent, that Entravision has made an equity investment in the
Borrower, on terms and conditions satisfactory to the Agent, in the amount of at
least $145,000,000;

          (iv)  The Agent shall have received a copy of the Merger Agreement
(including the Disclosure Schedules thereto), along with all bills of sale and
similar agreements and documents relating thereto, certified by the Borrower to
be true, correct and complete copies thereof, with no amendments thereto;

          (v)   The Agent shall have received all necessary corporate
resolutions of the shareholders and board of directors of LCG approving the
Merger;

          (vi)  The Agent shall have received the legal opinions of counsel
delivered under the Merger Agreement, each in form and substance satisfactory to
the Agent, and each such opinion shall contain a statement or be accompanied by
a letter addressed to the Agent and the Lenders dated the Closing Date, to the
effect that the Agent and the Lenders may rely upon such opinion to the same
extent as if it were originally addressed to each of them;

          (vii) The Agent shall have received evidence, in form and substance
satisfactory to the Agent, that the aggregate consideration paid for all
outstanding shares of LCG

                                      -30-
<PAGE>

in connection with the Merger shall not exceed $252,000,000, and the Agent shall
have received a certificate of a Responsible Officer of the Borrower to such
effect; and

          (viii) The Agent shall have received evidence, in form and substance
satisfactory to the Agent, that the Merger is in compliance with the Hart-Scott-
Rodino Act, and that any necessary approval thereunder has been obtained and is
in full force and effect.

     (b)  Credit Agreement.  The Agent shall have received this Agreement,
          ----------------
executed and delivered by an officer of the Borrower as of the Closing Date.

     (c)  Other Loan Documents.  The Agent shall have received the Notes, the
          --------------------
Guarantees, the Guarantor Security Agreements, the Security Agreement, the
Intercreditor Agreement and all UCC-1 Financing Statements and other agreements
or instruments required to create or perfect a security interest in the
Collateral executed in connection herewith, in each case executed and delivered
by an officer of the relevant Obligor.

     (d)  Incumbency Certificates.  The Agent shall have received an incumbency
          -----------------------
certificate of LCGAC, LCG (setting forth the officers thereof immediately after
the consummation of the Merger) and each other Guarantor, in each case dated the
Closing Date and executed by one of its Responsible Officers or its Secretary or
Assistant Secretary.

     (e)  Corporate/Limited Liability Company Proceedings.  The Agent shall have
          -----------------------------------------------
received a copy of the resolutions of the Board of Directors of LCGAC, LCG
(immediately after the consummation of the Merger) and each other corporate
Guarantor, and a copy of the resolutions of the appropriate governing body of
each limited liability company Guarantor, each dated as of the Closing Date
authorizing (i) the execution, delivery and performance of the Loan Documents to
which it is or will be a party, (ii) the borrowings contemplated hereunder (in
the case of LCGAC and LCG), (iii) the consummation of the Merger (in the case of
LCGAC and LCG) and (iv) the execution and delivery on behalf of the Borrower of
all notices, certificates and other documents to be delivered under the Loan
Documents from time to time, in each case certified by the Secretary or an
Assistant Secretary of such Obligor or the Managing Member(s) of such Obligor,
as applicable, as of the Closing Date, which certificate states that such
resolutions thereby certified have not been amended, modified, revoked or
rescinded and are in full force and effect.

     (f)  Organic Documents.  The Agent shall have received copies of the
          -----------------
Organic Documents of LCGAC, LCG (immediately after consummation of the Merger)
and each other Guarantor, certified as of the Closing Date as complete and
correct copies thereof (or, with respect to copies of Organic Documents which
have not been amended since their delivery under the Entravision Credit
Agreement, a certificate stating that such copies remain complete and correct
and such documents have not been amended) by the Secretary or an Assistant
Secretary of such Obligor.

     (g)  Fees and Costs.  The Agent shall have received payment of all fees,
          --------------
costs and expenses, including legal fees (if requested by the Agent) and the
fees set forth in the closing side letter executed by the Borrower and the Agent
in connection herewith, accrued and unpaid

                                      -31-
<PAGE>

and otherwise due and payable on or before the Closing Date by the Borrower in
connection with this Agreement.

     (h)  Legal Opinions.  The Agent shall have received, with a counterpart for
          --------------
each Lender, the following executed legal opinions:

          (i)   the executed legal opinion of Zevnik Horton Guibord McGovern
     Palmer & Fognani, L.L.P., counsel to the Borrower and the Guarantors, in
     form and substance satisfactory to the Agent;

          (ii)  the executed legal opinion of Thompson, Hine & Flory, LLP, FCC
     counsel to the Borrower and the Guarantors, in form and substance
     satisfactory to the Agent;

          (iii) the executed legal opinions of (A) Fried, Frank, Harris, Shriver
     & Jacobson and Leventhal, Senter & Lerman, P.L.L.C., counsel to the sellers
     under the Merger Agreement, and (B) Zevnik Horton Guibord McGovern Palmer &
     Fognani, L.L.P., counsel to the purchasers under the Merger Agreement, in
     each case in the form delivered pursuant to the Merger Agreement and either
     addressed to the Agent and the Lenders or with a letter authorizing the
     Agent and the Lenders to rely on such legal opinions; and

          (iv)  such other legal opinions as the Agent may reasonably request.

     (i)  Material Contracts. The Agent shall have received, with a counterpart
          ------------------
for each Lender, copies of (i) each Material Contract and (ii) to the extent not
referred to in clause (i), the Merger Agreement.

     (j)  Recording/Filing.  The Agent shall have received as of the Closing
          ----------------
Date evidence of (i) the filing, or of provision acceptable to the Agent for the
filing, of appropriate financing statements naming the Agent, for the benefit of
the Lenders, as secured party (including recordation of all fixture filings
requested by the Agent), in such office or offices as may be necessary or, in
the reasonable opinion of the Agent, desirable to perfect the security interests
purported to be created by any of the Collateral Documents or the Guarantor
Collateral Documents, (ii) the payment by the Borrower of all filing taxes or
assessments imposed by any such state or county office and (iii) all filings and
other actions necessary or desirable to perfect a security interest in any
intellectual property of any Obligor pledged under the Loan Documents.

     (k)  Lien Searches.  The Agent shall have received such UCC searches as it
          -------------
shall deem necessary.

     (l)  Stock Certificates; Etc.  The Agent shall have received (i) original
          ------------------------
stock certificates representing all outstanding shares of stock of the Borrower
and each corporate Subsidiary, together with an undated stock power for each of
such certificates, duly executed in blank by an authorized officer of the
pledgor and (ii) such Limited Liability Company Notices and Limited Liability
Company Acknowledgments as are required by the Security Agreement or any
Guarantor Security Agreement.

                                      -32-
<PAGE>

     (m)  Good Standing Certificates.  With respect to the LCGAC, LCG and each
          --------------------------
Guarantor, the Agent shall have received a certificate, dated a recent date, of
the Secretary of State of the state of formation of such Obligor and each other
jurisdiction where such Obligor is required to be qualified to do business under
such jurisdiction's law, certifying as to the existence and good standing of,
and the payment of taxes by, each Obligor in such state.

     (n)  No Default/Representations.  No Default shall have occurred and be
          --------------------------
continuing on the Closing Date or would occur after giving effect to the Loans
requested to be made on the Closing Date, and the representations and warranties
contained in this Agreement and each other Loan Document and certificate or
other writing delivered to the Lenders in satisfaction of the conditions set
forth in this Section 4.1 prior to or on the Closing Date shall be correct in
all material respects on and as of the Closing Date, and the Agent shall have
received a certificate of the Borrower to such effect in the form of Exhibit C,
dated as of the Closing Date and executed by a Responsible Officer of the
Borrower.

     (o)  No Prohibitions.  No statute, rule, regulation, order, decree or
          ---------------
preliminary or permanent injunction of any court or administrative agency or, to
the best knowledge of the Borrower, any such action threatened by any Person,
shall be in effect that prohibits the Lenders from consummating the transactions
contemplated by this Agreement or any other Loan Document, and the Agent shall
have received a certificate of a Responsible Officer of the Borrower to such
effect.

     (p)  Solvency Certificate.  The Agent shall have received a certificate of
          --------------------
the Chief Financial Officer of the Borrower and each Guarantor, to the effect
that the Borrower and each Guarantor is Solvent after giving effect to the
consummation of the Merger, the funding of the Loans, the execution and delivery
of the Guarantees, and the payment of all estimated legal, investment banking,
accounting, and other fees related hereto and thereto.

     (q)  Insurance Policies.  The Agent shall have received evidence that the
          ------------------
insurance policies provided for in Section 5.5 and in the other Loan Documents
are in full force and effect, certified by the insurance broker therefor,
together with appropriate evidence showing the Agent as an additional named
insured or loss payee, as appropriate, for the benefit of the Lenders, all in
form and substance reasonably satisfactory to the Agent.

     (r)  Operational Consents; FCC Matters.  The Agent shall have received
          ---------------------------------
evidence, in form and substance reasonably satisfactory to the Agent that (i)
all necessary FCC consents to the transaction contemplated by the Merger
Agreement have been obtained, provided that such consents need not have become
Final Orders, (ii) the Borrower and its Subsidiaries have obtained all FCC
consents and licenses required by law or necessary for the operation of the
Borrower and its Subsidiaries, (iii) the Borrower and its Subsidiaries have
obtained all other consents and licenses required by law or necessary for the
operation of the Borrower and its Subsidiaries and (iv) pro forma applications
for FCC approval of the transfer of the Media Licenses to the LCG License
Subsidiary have been filed with the FCC.

     (s)  Existing Indebtedness.  The Agent shall have received evidence
          ---------------------
satisfactory to it of (i) the full repayment of all existing Indebtedness of the
Borrower and its Subsidiaries, except as described in Schedule 6.2, and (ii) the
termination of all guarantees and collateral pledges (or

                                      -33-
<PAGE>

evidence that arrangements for termination of such collateral pledges
satisfactory to the Agent shall have been made).

     (t)  Operating Cash Flow.  The Agent shall have received a certificate of a
          -------------------
Responsible Officer of the Borrower stating that the consolidated Operating Cash
Flow of the Borrower and its Subsidiaries for the twelve months ended on January
31, 2000 was not less than $7,200,000, including calculations with respect
thereto in the form set forth in paragraph 2 of the Covenant Compliance
Certificate.

     (u)  Financial Information.  The Agent shall have received (i) the
          ---------------------
financial statements referred to in Section 3.12, (ii) a pro forma balance sheet
                                                         --- -----
of the Borrower and its Subsidiaries giving effect to the Merger, in form and
substance satisfactory to the Agent, (iii) projections of the performance of the
Borrower, in form and substance satisfactory to the Agent, and (iv) an operating
budget for the Borrower and its Subsidiaries for the period from the Closing
Date through December 31, 2000, in form and substance satisfactory to the Agent.

     (v)  Third Amendment to Entravision Credit Agreement.  The Agent shall have
          -----------------------------------------------
received evidence of the satisfaction of the conditions precedent to the third
amendment, dated as of the date hereof, to the Entravision Credit Agreement.

     (w)  Additional Proceedings.  The Agent shall have received such other
          ----------------------
approvals, opinions and documents as any Lender, through the Agent, may
reasonably request and all legal matters incident to the making of such Loans
shall be reasonably satisfactory to the Agent.

     SECTION 5.  AFFIRMATIVE COVENANTS

     The Borrower hereby agrees that from and after the Closing Date, so long as
any Commitment remains in effect, any Note remains outstanding and unpaid or any
other amount is owing to any Lender or the Agent hereunder:

     5.1  Financial Statements
          --------------------

     (a)  Within 120 days after the close of each fiscal year, the Borrower
shall deliver to the Agent, for distribution to the Lenders, a complete set of
audited annual consolidated and consolidating financial statements of the
Borrower, including a balance sheet, an income statement, a cash flow statement
and a reconciliation of consolidated net worth (with accompanying notes and
schedules). Such financial statements (i) must be prepared in accordance with
GAAP consistently applied and (ii) must be certified without qualification by
the Accountants. Together with the audited financial statements, the Agent must
also receive a certificate signed by such Accountants, at the time of the
completion of the annual audit, (A) stating that the financial statements fairly
present the consolidated and consolidating financial condition of the Borrower
as of the date thereof and for the periods covered thereby and (B) that, to the
knowledge of such Accountants, no Default exists under Section 6.1, to the
extent such Section relates to accounting matters.

     (b)  Within 45 days after the end of each fiscal quarter, the Borrower
shall deliver to the Agent, for distribution to the Lenders, (x) unaudited
consolidated and consolidating financial statements of the Borrower for such
quarter and (y) unaudited consolidated and consolidating

                                      -34-
<PAGE>

financial statements for the Borrower for the year-to-date period ended as of
the end of such quarter, in each case in form and substance acceptable to the
Agent. Such financial statements shall include, without limitation, a balance
sheet, income statement and operating cash flow statement (with appropriate
notes and schedules) and shall include a comparison of the results of each such
period with the results for the same period of the previous fiscal year and with
the budgeted results set forth in the budget referred to in Section 5.2(c) (or,
prior to delivery of such budget, the budget delivered on the Closing Date) and
must be prepared in accordance with GAAP consistently applied. In the case of
the financial statements referred to in clause (y), such financial statements
shall be prepared in accordance with GAAP consistently applied (except as
required by Section 1.2(e)). Together with the quarterly financial statements,
the Agent must also receive (i) a certificate executed by the Chief Financial
Officer of the Borrower (A) stating that the financial statements fairly present
the financial condition of the Borrower as of the date thereof and for the
periods covered thereby, (B) certifying that as of the date of such certificate
such officer has obtained no knowledge of any Default except as specified in
such certificate and (C) certifying that to the best of such officer's
knowledge, no Default has occurred and the Borrower is in compliance with its
respective covenants in the Loan Documents to which it is party and (ii) a
Covenant Compliance Certificate.

     (c)  Within 30 days after the end of each month, the Borrower shall deliver
to the Agent, for distribution to the Lenders, an unaudited monthly consolidated
and consolidating income statement and balance sheet, along with a comparison of
the results of such month with the same month of the previous fiscal year and
with the budgeted results set forth in the budget referred to in Section 5.2(c)
(or, prior to delivery of such budget, the budget delivered on the Closing
Date), in each case in form and substance acceptable to the Agent, certified by
a Responsible Officer of the Borrower as fairly presenting the financial
condition of the Borrower as of the date thereof and for the period covered
thereby.

     (d)  Within 45 days of the end of each fiscal quarter, the Borrower shall
deliver to the Agent, for distribution to the Lenders, a financial report, in
form and substance acceptable to the Agent, relating to the operations of each
Station and each publication as at the end of such quarter and the portion of
the fiscal year through the end of such quarter, certified by a Responsible
Officer of the Borrower as fairly presenting the financial condition of each
Station and publication as of the end of such quarter.

     5.2  Certificates; Other Information.  The Borrower shall furnish to the
          -------------------------------
Agent, for distribution to the Lenders:

     (a)  within five Business Days after the same are filed, copies of all
financial statements and reports that the Borrower or any Subsidiary may make
to, or file with, the Securities and Exchange Commission or any successor or
analogous Governmental Authority;

     (b)  promptly but, in any event, within five Business Days after receipt
thereof, copies of all financial reports (including, without limitation,
management letters), if any, submitted to the Borrower or any Subsidiary by the
Accountants in connection with any annual or interim audit of the books thereof;

                                      -35-
<PAGE>

     (c)  by January 31 of each year, commencing with the fiscal year ending on
December 31, 2000, a copy of the annual operating budget for the Borrower and
its Subsidiaries for such fiscal year, in form satisfactory to the Agent;

     (d)  as soon as possible and in any event within five Business Days after
the occurrence of a Default or, in the good faith determination of a Responsible
Officer of the Borrower, a Material Adverse Effect, the written statement by a
Responsible Officer of the Borrower, setting forth the details of such Default
or Material Adverse Effect and the action that the Borrower proposes to take
with respect thereto;

     (e)  promptly, but in any event within 30 days after any change in the
senior management personnel of the Borrower, written notice of such change;

     (f)  promptly but, in any event, within five Business Days after the same
become available, copies of all statements, reports and other information that
the Borrower sends to any holder of an equity interest therein;

     (g)  (A) as soon as possible and in any event within 30 days after the
Borrower knows or has reason to know that any Termination Event with respect to
any Plan has occurred, a statement of a Responsible Officer of the Borrower
describing such Termination Event and the action, if any, which the Borrower
proposes to take with respect thereto, (B) promptly and in any event within ten
days after receipt thereof by the Borrower or any ERISA Affiliate of the
Borrower from the PBGC, copies of each notice received by the Borrower or such
ERISA Affiliate of the PBGC's intention to terminate any Plan or to have a
trustee appointed to administer any Plan, (C) promptly and in any event within
30 days after the filing thereof with the Internal Revenue Service, copies of
each Schedule B (Actuarial Information) to the annual report (Form 5500 Series)
with respect to each Single Employer Plan maintained for or covering employees
of the Borrower or any Subsidiary if the present value of the accrued benefits
under the Plan exceeds its assets by an amount in excess of $500,000 and (D)
promptly and in any event within ten days after receipt thereof by the Borrower
or any ERISA Affiliate of the Borrower from a sponsor of a Multiemployer Plan or
from the PBGC, a copy of each notice received by the Borrower or such ERISA
Affiliates concerning the imposition or amount of withdrawal liability under
Section 4202 of ERISA or indicating that such Multiemployer Plan may enter
reorganization status under Section 4241 of ERISA;

     (h)  promptly after the commencement thereof, but in any event not later
than five Business Days after service of process with respect thereto on, or the
obtaining of knowledge by, the Borrower or any Subsidiary, notice of each
material action, suit or proceeding before any Governmental Authority;

     (i)  promptly after the sending or filing thereof, but in any event not
later than ten Business Days following such sending or filing, copies of (A) all
Ownership Reports on FCC Form 323 (or any similar form which may be adopted by
the FCC from time to time) relating to any Media License or Entravision Media
License, and any supplements thereto, and (B) all statements, reports and other
information filed with the FCC by or on behalf of the Borrower, any Subsidiary
or the Entravision License Subsidiary with respect to any Media License or
Entravision Media License;

                                      -36-
<PAGE>

     (j)  promptly, but in any event within one Business Day after any period
during which the transmission at any Station or transmission site is interrupted
or curtailed for an aggregate of 12 hours or more (whether or not consecutive),
written notice thereof;

     (k)  promptly upon receipt thereof, but in any event not later than five
Business Days following such receipt, copies of all notices and other
communications that the Borrower, any Subsidiary or the Entravision License
Subsidiary shall have received from the FCC with respect to any FCC hearing,
order or dispute (A) directly concerning the Borrower, any Subsidiary, the
Entravision License Subsidiary, any Station, any Media License or any
Entravision Media License or (B) that may have a Material Adverse Effect;

     (l)  promptly upon receipt thereof, but in any event not later than ten
Business Days following such receipt, copies of all Arbitron rating period
reports; and

     (m)  promptly, such additional financial and other information as any
Lender, through the Agent, may from time to time reasonably request.

     5.3  Payment of Obligations.  The Borrower shall, and shall cause each of
          ----------------------
its Subsidiaries to, pay, discharge or otherwise satisfy at or before maturity
or before they become delinquent, as the case may be, all its obligations of
whatever nature, except where the failure to so satisfy such obligations would
not have a Material Adverse Effect or except where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided on
the books of the Borrower or its Subsidiaries, as the case may be.

     5.4  Conduct of Business and Maintenance of Existence.  The Borrower shall,
          ------------------------------------------------
and shall cause each of its Subsidiaries to, continue to engage in business of
the same general type as conducted by the Borrower and its Subsidiaries as of
the Closing Date and preserve, renew and keep in full force and effect its
corporate or limited liability company existence, as applicable, and take all
reasonable action to maintain all rights, registrations, licenses, privileges
and franchises necessary or desirable in the normal conduct of its business, and
comply with all Contractual Obligations and Requirements of Law except to the
extent that failure to comply therewith would not, in the aggregate, have a
Material Adverse Effect.

     5.5  Maintenance of Property; Insurance.  The Borrower shall, and shall
          ----------------------------------
cause each of its Subsidiaries to, keep all property useful or necessary in its
business in good working order and condition (ordinary wear and tear excepted);
maintain with financially sound and reputable insurance companies or
associations insurance on such of its property in at least such amounts and
against such risks as are usually insured against in the same general area by
companies engaged in the same or a similar business (including casualty,
liability, fire, flood, business interruption, earthquake and workers'
compensation); and furnish to the Agent, upon written request, full information
as to the insurance carried. All such policies of insurance on the property of
the Borrower and the Subsidiaries shall contain an endorsement, in form and
substance reasonably satisfactory to the Agent in its sole discretion, showing
the Agent, on behalf of the Lenders, as additional insured or loss payee, as
appropriate, or as its interests appear. Such endorsement, or an independent
instrument furnished to the Agent, shall provide that the insurance companies
will give the Agent at least 25 days' prior written notice before any

                                      -37-
<PAGE>

such policy or policies of insurance shall be altered or canceled. All policies
of insurance required to be maintained under this Agreement shall be in
customary form and with insurers reasonably acceptable to the Agent, and all
such policies shall be in such amounts as shall be customary for similar
companies in the same or similar business in the same geographical area. The
Borrower shall deliver to the Agent insurance certificates certified by the
Borrower's insurance brokers, as to the existence and effectiveness of each
policy of insurance and evidence of payment of all premiums then due and payable
therefor. In addition, the Borrower shall notify the Agent promptly of any
occurrence causing a material loss of any insured Property and the estimated (or
actual, if available) amount of such loss. Further, the Borrower and its
Subsidiaries shall maintain all insurance required under the other Loan
Documents.

          (i)   Each policy for liability insurance shall provide for all losses
to be paid on behalf of the Agent and the Borrower or Subsidiary (as the case
may be), as their respective interests may appear, and each policy for property
damage insurance shall, to the extent applicable to equipment and inventory,
provide for all losses (except for losses of less than $500,000 per occurrence,
which may be paid directly to the Borrower or such Subsidiary, as applicable) to
be paid directly to the Agent.

          (ii)  Reimbursement under any liability insurance maintained by the
Borrower or its Subsidiaries pursuant to this Section 5.5 may be paid directly
to the Person who shall have incurred liability covered by such insurance. In
the case of any loss involving damage to equipment or inventory as to which
clause (iii) of this Section 5.5 is not applicable, the Borrower will make or
cause to be made the necessary repairs to or replacements of such equipment or
inventory, and any proceeds of insurance maintained by the Borrower or its
Subsidiaries pursuant to this Section 5.5 shall be paid by the Agent to the
Borrower or such Subsidiaries, upon presentation of invoices and other evidence
of obligations, as reimbursement for the costs of such repairs or replacements.

          (iii) Upon the occurrence and during the continuance of a Default, all
insurance proceeds in respect of such equipment or inventory shall be paid to
the Agent and applied in repayment of the Loans.

     5.6  Inspection of Property; Books and Records; Discussions.  The Borrower
          ------------------------------------------------------
shall, and shall cause each of its Subsidiaries to, keep proper books of record
and account in which full, true and correct entries in conformity with GAAP and
all Requirements of Law shall be made of all material dealings and transactions
in relation to its business and activities; and upon reasonable notice and at
such reasonable times during usual business hours, permit representatives of any
Lender to visit and inspect any of its properties and examine and make abstracts
from any of its books and records at any reasonable time and as often as may
reasonably be desired and to discuss the business, operations, properties and
financial and other condition of the Borrower and its Subsidiaries with officers
and employees of the Borrower and its Subsidiaries and with its Accountants.

     5.7  Environmental Laws.  The Borrower shall, and shall cause each of its
          ------------------
Subsidiaries to:

     (a)  Comply in all material respects with, and ensure compliance by all
tenants and subtenants, if any, with, all applicable Environmental Control
Statutes and obtain and comply in

                                      -38-
<PAGE>

all material respects with any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Control Statutes;

     (b)  Conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Control Statutes and promptly comply in all material respects with
all lawful orders and directives of all Governmental Authorities regarding
Environmental Control Statutes except to the extent that the same are being
contested in good faith by appropriate proceedings; and

     (c)  Defend, indemnify and hold harmless the Agent and the Lenders, and
their respective employees, agents, officers and directors, from and against any
and all claims, demands, penalties, fines, liabilities, settlements, damages,
costs and expenses of whatever kind or nature known or unknown, contingent or
otherwise, arising out of, or in any way relating to the violation of,
noncompliance with or liability under any Environmental Control Statutes
applicable to the operations of the Borrower or any of its Subsidiaries, or the
Borrower's or any of its Subsidiaries' interest in Properties, or any orders,
requirements or demands of Governmental Authorities related thereto, including,
without limitation, attorneys' and consultants' fees, investigation and
laboratory fees, response costs, court costs and litigation expenses, except to
the extent that any of the foregoing arise out of the gross negligence or
willful misconduct of the party seeking indemnification therefor. This indemnity
shall continue in full force and effect regardless of the termination of this
Agreement.

     5.8  Use of Proceeds.  The Borrower will use (i) $105,000,000 of the
          ---------------
proceeds of the Loans to pay a portion of the aggregate consideration to be paid
by LCGAC in the Merger for outstanding shares of LCG and (ii) $10,000,000 of the
proceeds of the Loans to fund the Interest Reserve Account.

     5.9  Compliance With Laws, Etc.  The Borrower shall comply, and shall cause
          -------------------------
each of its Subsidiaries to comply, in all material respects with all applicable
Requirements of Law, such compliance to include, without limitation (i) paying
before the same become delinquent all taxes, assessments and governmental
charges or levies imposed upon it or upon its income or profits or upon any of
its Properties and (ii) paying all lawful claims which if unpaid might become a
Lien upon any of its Properties; provided, however, that neither the Borrower
                                 --------  -------
nor any of such Subsidiaries shall be required to pay and discharge or to cause
to be paid and discharged any such tax, assessment, charge, levy or claim so
long as (A) the validity or applicability thereof is being contested in good
faith by appropriate proceedings or the failure to pay such tax, assessment,
charge, levy or claim would not (in the reasonable judgment of the Majority
Lenders) have a Material Adverse Effect and (B) the Borrower or such Subsidiary
shall, to the extent required by GAAP, have set aside on its books adequate
reserves with respect thereto.

     5.10 Media Licenses.  The Borrower will obtain, maintain and preserve, and
          --------------
cause each of its Subsidiaries to obtain, maintain and preserve, all Media
Licenses (and will cause the Media Licenses to be held by the Entravision
License Subsidiary or the LCG License Subsidiary in accordance with the terms of
this Agreement), including without limitation, by filing with the FCC (i) those
of the Loan Documents required to be filed under the FCC's rules and regulations
within 30 days after the Closing Date and (ii) all reports (including Ownership
Reports on FCC Form 323) and other documents required to be filed by the
Communications Act in connection

                                      -39-
<PAGE>

with the transactions contemplated hereby and maintaining public records and
files in accordance with Communications Act and the rules and regulations of the
FCC.

     5.11 Guarantees, Etc.  The Borrower will cause each of its Subsidiaries
          ---------------
hereafter formed or acquired to execute and deliver to the Agent promptly upon
the formation or acquisition thereof (i) a Guarantee in form and substance
satisfactory to the Agent, guaranteeing the Obligations, (ii) a Guarantor
Security Agreement, in form and substance satisfactory to the Agent, granting to
the Agent, for the benefit of the Lenders, a security interest in the tangible
and intangible personal property of such Subsidiary, together with appropriate
Lien searches requested by the Agent indicating the Lenders' first priority Lien
on such personal property and (iii) UCC-1 Financing Statements, duly executed by
such Subsidiary, in form and substance satisfactory to the Agent and, in
connection with such deliveries, cause to be delivered to the Agent (A) the
stock certificates representing the issued and outstanding shares of stock of
such Subsidiary, together with undated stock powers executed in blank, (B) a
favorable written opinion of counsel satisfactory to the Agent as to such
matters relating thereto as any Lender through the Agent may reasonably request,
in form and substance satisfactory to the Agent and (C) such other agreements,
instruments, approvals or other documents as any Lender through the Agent may
reasonably request.

     5.12 License Subsidiary.  The Borrower will cause each Media License to be
          ------------------
transferred to the LCG License Subsidiary by May 31, 2000 and to be held by the
LCG License Subsidiary at all times thereafter until the Obligations have been
paid in full and all Commitments have expired. The Borrower will not permit the
LCG License Subsidiary to (i) own any right, franchise or other asset except for
Media Licenses (and FCC files and records with respect thereto) or (ii) engage
in any business other than holding such Media License, files and records.

     5.13 Interest Rate Protection.  Within 30 days after the Closing Date, the
          ------------------------
Borrower will enter into and maintain one or more Interest Rate Agreements, each
in form and substance reasonably satisfactory to the Agent, covering a minimum
of 75% of the Loans outstanding on the Closing Date.

     5.14 Leases and Licenses.  The Borrower shall or shall cause its
          -------------------
Subsidiaries to perform and carry out, in all material respects, all of the
provisions of all of the leases, licenses, permits and any other occupancy
agreements relating to real property or real property interests (the "Occupancy
                                                                      ---------
Agreements") to be performed by the Borrower or any of its Subsidiaries and
----------
shall appear in and defend any action in which the validity of any of the
Occupancy Agreements relating to any real property or real property interests is
at issue and shall commence and maintain any action or proceeding necessary to
establish or maintain the validity of any of such Occupancy Agreements and to
enforce the provisions thereof.

     5.15 Lease and License Approvals.  The Borrower and its Subsidiaries shall
          ---------------------------
submit to the Agent for its prior approval any leases, licenses, permits or
other Occupancy Agreements relating to real property or real property interests
that the Borrower or any of its Subsidiaries may desire to execute or obtain,
which provide for the payment of rent or license fees in excess of $100,000 in
any fiscal year. Each such agreement shall be subject to the approval of the
Agent, such approval not to be unreasonably withheld. The Agent may require that
any lease, license or

                                      -40-
<PAGE>

other similar agreement become part of the Collateral or the Guarantor
Collateral, and the Borrower and its Subsidiaries shall provide or cause to be
provided any and all Collateral Documents or Guarantor Collateral Documents or
other documents to be executed in connection therewith requested by the Agent
and provide the Agent with title insurance (to the extent applicable) as a
condition to approval.

     5.16 Notices.  The Borrower will provide, and will cause its Subsidiaries
          -------
to provide to the Agent, within 5 Business Days following receipt by the
Borrower or any Subsidiary, copies of all notices received by the Borrower or
such Subsidiary (i) under any Material Contract or any instrument, document or
agreement relating to any Subordinated Indebtedness, relating to any material
default, any claimed force majeure or any other material provision thereof and
(ii) from the Internal Revenue Service or other taxing authority relating to any
material dispute regarding deductions, audits or any other material matter
which, if adversely determined against the Borrower or such Subsidiary, would
have a Material Adverse Effect.

     5.17 Additional Material Contracts and Media Licenses.  The Borrower (a)
          ------------------------------------------------
will notify the Agent in writing within 90 calendar days after executing,
entering into, becoming bound by or subject to or otherwise obtaining any
contract, agreement or Media License that should have been listed on Schedule
3.8 hereto or Schedule 3.9 hereto if it had existed as of the Closing Date and
(b) will concurrently update Schedule 3.8 hereto or Schedule 3.9 hereto (as
appropriate).

     SECTION 6.  NEGATIVE COVENANTS

     The Borrower hereby agrees that from and after the Closing Date, so long as
any Commitments remain in effect, any Note remains outstanding and unpaid or any
other amount is owing to any Lender or the Agent hereunder:

     6.1  Financial Condition Covenants.  The Borrower shall not:
          -----------------------------

     (a)  Total Interest Coverage Ratio.  Permit the Total Interest Coverage
          -----------------------------
Ratio for the Borrower and its Subsidiaries on a consolidated basis, for the
period representing the number of whole months (not exceeding twelve months)
that have passed from and including May 1, 2000 to and including the last day of
the fiscal quarter of the Borrower ending on the applicable date specified
below, as determined by reference to the applicable Covenant Compliance
Certificate to be provided pursuant to Section 5.1(b), to be less than the
following levels for the periods indicated:

<TABLE>
<CAPTION>
                Period Ending                              Ratio
                -------------                              -----
              <S>                                          <C>
              September 30, 2000                           1.35:1

              December 31, 2000                            1.50:1
              and thereafter
</TABLE>

; provided, however, that the Borrower need not comply with the foregoing
  --------  -------
covenant for any period specified above during which all interest in respect of
the Loans was paid from the Interest Reserve Account.

                                      -41-
<PAGE>

     (b)  Minimum Operating Cash Flow.  Permit the Operating Cash Flow of the
          ---------------------------
Borrower and its Subsidiaries on a consolidated basis, for the twelve months
ended as of the end of any fiscal quarter of the Borrower as determined by
reference to the applicable Covenant Compliance Certificate to be provided
pursuant to Section 5.1(b), to be less than the following levels for the periods
indicated:

<TABLE>
<CAPTION>
                Period Ending                           Maximum Amount
                -------------                           --------------
                <S>                                     <C>
                June 30, 2000                             $8,000,000
                September 30, 2000                        $8,500,000
                December 31, 2000                         $9,200,000
                and thereafter
</TABLE>

     6.2  Limitation on Indebtedness.  The Borrower shall not create, incur,
          --------------------------
assume or suffer to exist any Indebtedness, and shall not permit any of its
Subsidiaries to create, incur, assume or suffer to exist any Indebtedness,
except for:

     (a)  Indebtedness created hereunder and under the Notes;

     (b)  Indebtedness of the Borrower or any Subsidiary outstanding on the
Closing Date and listed on Schedule 6.2;

     (c)  Indebtedness (i) under any Interest Rate Agreement required pursuant
to Section 5.13, (ii) evidenced by performance bonds or letters of credit issued
in the ordinary course of business or reimbursement obligations in respect
thereof, (iii) evidenced by a letter of credit facility related to insurance
associated with claims for work-related injuries or (iv) for bank overdrafts
incurred in the ordinary course of business that are promptly repaid; and

     (d)  trade credit incurred to acquire goods, supplies, services and
incurred in the ordinary and normal course of business.

Notwithstanding the foregoing, the LCG License Subsidiary shall not be
permitted, under any circumstances, to create, incur, assume or suffer to exist
any Indebtedness, other than the Indebtedness created under the Loan Documents.

     6.3  Limitation on Liens.  The Borrower shall not, and shall not permit
          -------------------
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon any of its property, assets or revenues, whether now owned or hereafter
acquired, except for:

     (a)  Liens created hereunder or under any of the other Loan Documents;

     (b)  Liens existing on any Property at the time of its acquisition and not
created in anticipation of such acquisition;

     (c)  Liens arising pursuant to any order of attachment, distraint or
similar legal process arising in connection with court proceedings so long as
the execution or other

                                      -42-
<PAGE>

enforcement thereof is effectively stayed and claims secured thereby are being
contested in good faith by appropriate proceedings;

     (d)  Liens for taxes not yet due or which are being contested in good faith
by appropriate proceedings, provided that adequate reserves with respect thereto
                            --------
are maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;

     (e)  Liens created by operation of law not securing the payment of
Indebtedness for money borrowed or guaranteed, including carriers',
warehousemen's, mechanics', materialmen's, repairmen's or other like Liens
arising in the ordinary course of business, which are not overdue for a period
of more than 45 days or which are being contested in good faith by appropriate
proceedings;

     (f)  pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements;

     (g)  deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business; and

     (h)  easements, rights-of-way, restrictions and other similar encumbrances
incurred in the ordinary course of business, which, in the aggregate, would not
cause a Material Adverse Effect.

Notwithstanding the foregoing, the LCG License Subsidiary shall not be
permitted, under any circumstances, to incur any consensual Liens or Liens
securing the payment of Indebtedness for money borrowed or guaranteed, other
than Liens created by the Loan Documents.

     6.4  Limitation on Fundamental Changes.  The Borrower shall not, and shall
          ---------------------------------
not permit any of its Subsidiaries to, enter into any merger, consolidation or
amalgamation (other than the Merger), or liquidate, wind up or dissolve itself
(or suffer any liquidation or dissolution), or create or acquire any Subsidiary
or Affiliate (unless the documents required by Section 5.11 are executed and
delivered) or convey, sell, lease, assign, transfer or otherwise dispose of
(including by making any Station subject to any local marketing or similar
agreement) all or substantially all of its property, business or assets.

     6.5  Limitation on Sale of Assets.  The Borrower shall not, and shall not
          ----------------------------
permit any of its Subsidiaries to, make any Asset Disposition without the prior
written consent of the Majority Lenders in each case, such consent not to be
unreasonably withheld.

     6.6  Limitation on Dividends.  The Borrower shall not, and shall not permit
          -----------------------
any of its Subsidiaries to (a) if a corporation, declare or pay any dividend
(other than dividends payable solely in common stock of the Borrower or its
Subsidiaries) on, or make any payment on account of, or set apart assets for a
sinking or other analogous fund for, the purchase, redemption, defeasance,
retirement or other acquisition of, any shares of any class of Capital Stock of
the Borrower or its Subsidiaries or any warrants or options to purchase any such
Capital Stock, whether now or hereafter outstanding, and (b) if a partnership or
a limited liability company,

                                      -43-
<PAGE>

make any distribution with respect to the ownership interests therein, or, in
either case, any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of the Borrower or any
Subsidiary.

     6.7  Limitation on Investments, Loans and Advances.  The Borrower shall
          ---------------------------------------------
not, and shall not permit any of its Subsidiaries to, make any advance, loan,
extension of credit or capital contribution to, or purchase any stock, bonds,
notes, debentures or other securities of or any assets constituting a business
unit of, or make any other investment in (any of the foregoing, an
"investment"), any Person, except for:
 ----------

     (a)  consummation of the Merger in accordance with the terms of Section
4.1;

     (b)  the Borrower's ownership interest in its Subsidiaries;

     (c)  investments in marketable securities, liquid investments and other
financial instruments that are acquired for investment purposes and may be
readily sold or otherwise liquidated, that have a value which may be readily
established and which are investment grade;

     (d)  extensions of trade credit in the ordinary course of business; and

     (e)  investments existing on the Closing Date and listed on Schedule 6.7.

Notwithstanding the foregoing, the LCG License Subsidiary shall not be
permitted, under any circumstances, to make any investments.

     6.8  Limitation on Modifications of Certain Documents and Instruments.
          ----------------------------------------------------------------
The Borrower shall not, and shall not permit its Subsidiaries to, terminate,
amend or modify any provision of any document, instrument or agreement relating
to any Material Contract or any Organic Document, in each case which could have
a Material Adverse Effect.

     6.9  Transactions with Affiliates.  The Borrower shall not, and shall not
          ----------------------------
permit any of its Subsidiaries to, enter into any transaction, including,
without limitation, any purchase, sale, lease or exchange of property or the
rendering of any service, with any Affiliate or any Subsidiary less than wholly-
owned, directly or indirectly, by the Borrower, unless such transaction (i) is
otherwise permitted under this Agreement or (ii) is in the ordinary course of
the Borrower's or such Subsidiary's business and is upon terms no less favorable
to the Borrower or such Subsidiary, as the case may be, than it would obtain in
a comparable arm's length transaction with a Person not an Affiliate.

     6.10 Fiscal Year.  The Borrower shall not permit its fiscal year or the
          -----------
fiscal year of any of its Subsidiaries to end on a day other than December 31.

     6.11 Lease Obligations.  The Borrower shall not, and shall not permit any
          -----------------
of its Subsidiaries to, sell, assign or otherwise transfer any of its
Properties, rights or assets (whether now owned or hereafter acquired) to any
Person and thereafter directly or indirectly lease back the same or similar
property.

                                      -44-
<PAGE>

     6.12 Unfunded Liabilities.  The Borrower shall not permit unfunded
          --------------------
liabilities for any and all Plans maintained for or covering employees of the
Borrower or any Subsidiary to exceed $500,000 in the aggregate at any time.

     6.13 Management Fees.  The Borrower shall not, and shall not permit any of
          ---------------
its Subsidiaries to, incur any management fees for services rendered.

     6.14 Equity Offerings.  The Borrower shall not, and shall not permit any of
          ----------------
its Subsidiaries to, consummate or agree to consummate any Equity Offering.

     SECTION 7.  EVENTS OF DEFAULT

     If any of the following events shall occur and be continuing:

     (a)  The Borrower shall fail to pay any principal on any Note when due, the
Borrower shall fail to pay any interest on any Note, any fee referred to in the
letter referred to in Section 4.1(g) within two Business Days after any such
interest or fee becomes due in accordance with the terms thereof and hereof, or
the Borrower shall fail to pay any other amount payable hereunder within five
Business Days after written notice that such other amount is due; or

     (b)  Any representation or warranty made or deemed made by any Obligor
herein or in any other Loan Document or that is contained in any certificate,
document or financial or other statement furnished at any time under or in
connection with this Agreement or any other Loan Document shall prove to have
been incorrect in any material respect when made or deemed made; or

     (c)  The Borrower shall default in the observance or performance of any
agreement contained in Section 5.2(d), 5.3, 5.4, 5.8, 5.9, 5.10, 5.11, 5.12,
5.13, or any provision of Section 6; or

     (d)  (i) Any Obligor shall default in the observance or performance of any
other material agreement contained in this Agreement or the other Loan Documents
(other than as provided in paragraphs (a) through (c) of this Section), and such
default shall continue unremedied for a period of 30 days after the earlier of
(y) notice thereof from the Agent to the Borrower and (z) actual knowledge
thereof by a senior officer of such Obligor (unless such default is of such a
nature that it cannot reasonably be cured within 30 days after the date
described in clause (y) or (z), as applicable, in which case the defaulting
Obligor has not commenced the cure thereof within such 30-day period and/or has
not thereafter diligently pursued the completion of the same), (ii) any material
provision of any Loan Document shall at any time for any reason be declared null
and void, or the validity or enforceability of any Loan Document shall at any
time be contested by any Obligor, or a proceeding shall be commenced by any
Obligor, or by any Governmental Authority or other Person having jurisdiction
over any Obligor, seeking to establish the invalidity or unenforceability
thereof, or any Obligor shall deny that it has any liability or obligation
purported to be created under any Loan Document or (iii) a "Default" shall have
occurred and be continuing under the Entravision Credit Agreement; or

     (e)  Any Guarantee shall cease, for any reason, to be in full force and
effect, and such occurrence shall have a Material Adverse Effect; or

                                      -45-
<PAGE>

     (f)  Except as set forth in Section 7(d)(iii), the Borrower or any other
Obligor shall (i) default in any payment of principal or interest, regardless of
the amount, due in respect of any (A) Indebtedness (other than the Notes),
issued under the same indenture or other agreement, if the original principal
amount of Indebtedness covered by such indenture or agreement is $500,000 or
greater or (B) any Guarantee Obligation with respect to an amount of $500,000 or
greater, beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness or Guarantee Obligation was created,
whether or not such default has been waived by the holders of such Indebtedness
or Guarantee Obligation; or (ii) default in the observance or performance of any
other material agreement or condition relating to any such Indebtedness or
Guarantee Obligation or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist,
the effect of which default or other event or condition is to cause, or to
permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Guarantee Obligation (or a trustee or agent on behalf of
such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to become due prior to its
stated maturity or such Guarantee Obligation to become payable or such
Indebtedness to be required to be defeased or purchased; or

     (g)  (i) The Borrower or any other Obligor shall commence any case,
proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B)
seeking appointment of a receiver, trustee, custodian or other similar official
for it or for all or any substantial part of its assets, or the Borrower or any
other Obligor shall make a general assignment for the benefit of its creditors;
or (ii) there shall be commenced against the Borrower or any other Obligor any
case, proceeding or other action of a nature referred to in clause (i) above
which (A) results in the entry of an order for relief or any such adjudication
or appointment or (B) remains undismissed, undischarged, unstayed or unbonded
for a period of 60 days; or (iii) there shall be commenced against the Borrower
or any other Obligor any case, proceeding or other action seeking issuance of a
warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets which results in the entry of an order for
any such relief which shall not have been vacated, discharged, stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) the Borrower or
any other Obligor shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in clause
(i), (ii), or (iii) above; or (v) the Borrower or any other Obligor shall
generally not, or shall be unable to, or shall admit in writing its inability
to, pay its debts as they become due or there shall be a general assignment for
the benefit of creditors; or

     (h)  (i) Any Person shall engage in any non-exempt "prohibited transaction"
(as defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan, (ii) any "accumulated funding deficiency" (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any Plan, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee would reasonably be expected to result
in the

                                      -46-
<PAGE>

termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA (other than a
standard termination) or (v) the Borrower or any Commonly Controlled Entity
would reasonably be expected to incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan;
and in each case regarding clauses (i) through (v) above, such event or
condition, together with all other such events or conditions, if any, would
reasonably be expected to subject the Borrower or any other Obligor to any tax,
penalty or other liabilities in the aggregate to exceed $500,000; or

     (i)  One or more judgments or decrees shall be entered against the Borrower
or any other Obligor involving in the aggregate a liability (not paid or fully
covered by insurance) of $250,000 or more, and all such judgments or decrees
shall not have been vacated, discharged, stayed or bonded pending appeal within
60 days from the entry thereof or in any event five days before the date of any
sale pursuant to such judgment or decree or any non-monetary judgment or order
shall be entered against the Borrower or any other Obligor that is reasonably
likely to have a Material Adverse Effect and either (i) enforcement proceedings
shall have been commenced by any Person upon such judgment, which has not been
stayed pending appeal or (ii) there shall be any period of 10 consecutive days
during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or

     (j)  There shall occur any default in the material observance or material
performance of any Material Contract or any such Material Contract shall
terminate or otherwise no longer be in full force and effect, in each case to
the extent such default or termination could reasonably be expected to have a
Material Adverse Effect; or

     (k)  (A) any designation by any Governmental Authority (including the FCC)
of an evidentiary hearing with regard to any application of the Borrower, any of
its Subsidiaries, or any other Obligor requesting any authorization from such
Governmental Authority shall fail to be dismissed within 120 days after such
designation and the Agent, in its reasonable judgment after consultation with
its FCC counsel, believes that it is more likely than not that the result
thereof will be the termination, revocation, suspension, non-renewal or material
(and adverse) modification of any material Media License held by the Borrower or
its Subsidiaries, or any material Entravision Media License held by Entravision
or any of its Subsidiaries (other than the Borrower or its Subsidiaries), or (B)
any Governmental Authority (including the FCC) shall terminate, revoke or
substantially and adversely modify any material Media License of the Borrower or
its Subsidiaries, or any material Entravision Media License held by Entravision
or any of its Subsidiaries (other than the Borrower or its Subsidiaries), or (C)
any action or proceeding commenced by any Governmental Authority (including the
FCC) seeking the termination, suspension, revocation, non-renewal or substantial
and adverse modification of any material Media License or any material
Entravision Media License shall fail to be dismissed within 120 days after such
commencement, and the Agent, in its reasonable judgment after consultation with
its FCC counsel, believes that such proceeding will more likely than not result
in such termination, suspension, revocation, non-renewal or substantial and
adverse modification, or (D) any material Media License or any material
Entravision Media License shall expire by its terms and is not renewed in a
timely manner, or any material agreement which is necessary to the operation of
any broadcast facility or transmission site relating to any material Media
License or any material Entravision Media License shall expire or is revoked or

                                      -47-
<PAGE>

terminated and is not replaced by a comparable substitute or a substitute
reasonably acceptable to the Agent. (For purposes of this Section 7(k), a
"material" Media License is (1) any Media License (other than a Media License
issued by the FCC), alone or in conjunction with other Media Licenses then
subject to any of the circumstances described in this Section, the loss of which
(in the Agent's reasonable judgment) could have a Material Adverse Effect, (2)
any Entravision Media License (other than an Entravision Media License issued by
the FCC), alone or in conjunction with other Entravision Media Licenses then
subject to any of the circumstances described in this Section, the loss of which
(in the Agent's reasonable judgment) could have a Material Adverse Effect and
(3) any Media License or Entravision Media License issued by the FCC.
Notwithstanding the foregoing, with respect to the type of event described in
clause (A) or clause (C) above, the occurrence of such event will not constitute
an Event of Default under and for purposes of clause (A) or clause (C) of this
Section 7(k) only, provided that (and so long as) each of the following
                   -------- ----
conditions is satisfied to the Agent's satisfaction:

          (i)   the Borrower provides the Agent with written notice of such
event within five Business Days after it or any other Obligor is notified by the
FCC of such designation (and also provides a copy of any such notice received
from the FCC), and

          (ii)  the notice of designation affirmatively indicates that it
relates only to the licenses or applications of a single Station or a single
Entravision Station rather than to the licenses and/or applications of more than
one Station or Entravision Station, and

          (iii) with respect to any Media License, if an adverse ruling in the
proceeding would threaten the Borrower's ability to continue providing the same
level of underlying service by such Station as theretofore provided, then (A)
the Borrower shall make a prepayment of the Loans (within 30 Business Days after
receiving notice of such designation from the FCC) in an amount sufficient for
the Borrower to remain in compliance with each of the financial covenants under
Section 6.1 hereof without including any of the Operating Cash Flow attributable
to such Station and (B) the Borrower shall thereafter exclude the Operating Cash
Flow attributable to such Station from the calculation of the Borrower's
consolidated Operating Cash Flow. Any such prepayment and exclusion from
Operating Cash Flow will be permanent unless and until the FCC proceeding
regarding such license or application is finally resolved to the Agent's
satisfaction in a manner favorable to the Borrower and without any divestiture
of assets required by the FCC or otherwise voluntarily accomplished by the
Borrower pursuant to the next sentence. Once the Borrower has made such
prepayment and exclusion from Operating Cash Flow under the circumstances
contemplated by this clause (iii), then the Borrower may thereafter sell the
assets relating to such Station (and only such Station) pursuant to a
transaction with an unrelated third party (i.e., a non-Affiliate) for value
                                           ----
received provided that (1) the Borrower gives the Agent written notice of such
         -------- ----
transaction at least 30 days (but not more than 60 days) prior to consummation
of such transaction, (2) the representation under Section 3.20 regarding
solvency of the Borrower is true immediately prior to and following any such
disposition, (3) such transaction does not cause a Material Adverse Effect or
otherwise violate any covenant hereunder or otherwise cause a Default hereunder,
(4) the Borrower provides the Agent with a certificate renewing the
representations and warranties in the Loan Documents and (if and to the extent
appropriate) updating the various schedules to the Loan Documents to make the
representations and warranties therein true, accurate and complete following
such transaction and (5) the proceeds of such transaction are promptly used to
prepay the Loans; or

                                      -48-
<PAGE>

     (l)  Any material provision of any Loan Document, after delivery thereof
pursuant to the provisions hereof, shall, for any reason other than an act or
omission by the Agent, cease to be valid or enforceable in accordance with its
terms and such cessation shall have a Material Adverse Effect, or any security
interest created under any Loan Document shall for any reason other than an act
or omission by the Agent, cease to be a valid and perfected first-priority
security interest or Lien (except as otherwise stated or permitted herein or
therein) in any material portion of the Collateral, the Guarantor Collateral or
the property purported to be covered thereby; or

     (m)  A Change in Control shall have occurred; provided that, the occurrence
of any event which would constitute a Change in Control shall not constitute an
Event of Default under this Section 7(m) if such event is by reason of the death
or disability of either or both of Walter F. Ulloa and Philip C. Wilkinson and
(i) no other Default has occurred and is continuing and (ii) there has been
presented to the Lenders within 120 days of such death or disability a plan for
reorganization of, and operation of the business of, the Borrower and
Entravision (which plan shall include compliance with the terms of this
Agreement and the other Loan Documents) in the absence of such individual or
individuals (as applicable) which is satisfactory to the Majority Lenders in
their reasonable discretion; or

     (n)  The operations of any Station or any Entravision Station shall be
interrupted or curtailed at any time for a period in excess of 96 hours (whether
or not consecutive) during any period of seven consecutive days; or

     (o)  With respect to any Obligor that is organized as a limited liability
company, any member thereof (A) experiences an event described in Section 7(g)
hereof, (B) dies, dissolves or otherwise terminates its existence, or (C)
withdraws from membership in such limited liability company. Notwithstanding the
foregoing, such event will not constitute an Event of Default hereunder if (1)
within 15 Business Days of the occurrence such event, the Agent is notified
thereof in writing and (2) within 30 days of the occurrence of such event (or
within such shorter period as may be required by applicable law or the
applicable Organic Documents for such limited liability company), the remaining
members of such limited liability company take all action necessary, if any (in
a manner reasonably acceptable to the Agent) to continue the existence of such
limited liability company as an operating organization liable to the Agent for
its obligations under the Loan Documents;

then, and in any such event, (A) if such event is an Event of Default specified
in paragraph (g) above, automatically the Commitments to the Borrower shall
immediately terminate and the Loans made to the Borrower hereunder (with accrued
interest thereon) and all other Obligations shall immediately become due and
payable, and (B) if such event is any other Event of Default, with the consent
of the Majority Lenders, the Agent may, or upon the request of the Majority
Lenders, the Agent shall, take any or all of the following actions:  (i) by
notice to the Borrower declare the Commitments to the Borrower to be terminated
forthwith, whereupon such Commitments shall immediately terminate; and (ii) by
notice of default to the Borrower, declare the Loans (with accrued interest
thereon) and all other Obligations under this Agreement and the Notes to be due
and payable forthwith, whereupon the same shall immediately become due and
payable.  In all cases, with the consent of the Majority Lenders, the Agent may
enforce any or all of the Liens and security interests and other rights and
remedies created pursuant to any Loan

                                      -49-
<PAGE>

Document or available at law or in equity. Except as expressly provided above in
this Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived by the Borrower.

     SECTION 8.  THE AGENT

     8.1  Appointment.  Each Lender hereby irrevocably designates and appoints
          -----------
Union Bank of California, N.A. as Agent of such Lender under this Agreement and
the other Loan Documents, and each such Lender irrevocably authorizes Union Bank
of California, N.A., as the Agent for such Lender, to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to
the Agent by the terms of this Agreement and the other Loan Documents, together
with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary elsewhere in this Agreement, the Agent shall not have
any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Agent.

     8.2  Delegation of Duties.  The Agent may execute any of its duties under
          --------------------
this Agreement and the other Loan Documents by or through agents or attorneys-
in-fact and shall be entitled to advice of counsel concerning all matters
pertaining to such duties. The Agent shall not be responsible for the negligence
or misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

     8.3  Exculpatory Provisions.  Neither the Agent nor any of its officers,
          ----------------------
directors, employees, agents, attorneys-in-fact or Affiliates shall be (i)
liable for any action lawfully taken or omitted to be taken by it or such Person
under or in connection with this Agreement or any other Loan Document (except
for its or such Person's own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower, any Subsidiary or any other
Obligor or any officer thereof contained in this Agreement or any other Loan
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Agent under or in connection with, this
Agreement or any other Loan Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or the Notes or any
other Loan Document or for any failure of the Borrower, any Subsidiary or any
other Obligor to perform its obligations hereunder or thereunder. The Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of the Borrower, any Subsidiary or any other
Obligor.

     8.4  Reliance by the Agent.  The Agent shall be entitled to rely, and shall
          ---------------------
be fully protected in relying, upon any note, writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or
teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to the Borrower), the Accountants and independent

                                      -50-
<PAGE>

accountants and other experts selected by the Agent.  The Agent may deem and
treat the payee of any Note as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been
filed with the Agent.  The Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Majority Lenders or all
Lenders, as it deems appropriate, or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense (except to
the extent incurred as a result of the Agent's gross negligence or willful
misconduct) which may be incurred by it by reason of taking or continuing to
take any such action.  The Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement and the Notes and the
other Loan Documents in accordance with a request of the Majority Lenders or all
Lenders, as may be required, and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Notes.

     8.5  Notice of Default.  The Agent shall not be deemed to have knowledge or
          -----------------
notice of the occurrence of any Default hereunder unless the Agent has received
notice from a Lender or the Borrower referring to this Agreement, describing
such Default and stating that such notice is a "notice of default". In the event
that the Agent receives such a notice, the Agent shall give notice thereof to
the Lenders. The Agent shall take such action with respect to such Default as
shall be reasonably directed by the Majority Lenders or all Lenders as
appropriate; provided that unless and until the Agent shall have received such
             --------
directions, the Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default as it shall deem
advisable in the best interests of the Lenders or as the Agent shall believe
necessary to protect the Lenders' interests in the Collateral or the Guarantor
Collateral.

     8.6  Non-Reliance on the Agent and Other Lenders.  Each Lender expressly
          -------------------------------------------
acknowledges that neither the Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations
or warranties to it and that no act by the Agent hereafter taken, including any
review of the affairs of the Borrower, any Subsidiary or any other Obligor,
shall be deemed to constitute any representation or warranty by the Agent to any
Lender. Each Lender represents to the Agent that it has, independently and
without reliance upon the Agent or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower, any Subsidiary and the other
Obligors and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon the Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrower, its Subsidiaries and the other Obligors. Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Agent hereunder, the Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Borrower, any Subsidiary or any other Obligor that may
come into the possession of the Agent or any of its respective officers,
directors, employees, agents, attorneys-in-fact or Affiliates.

                                      -51-
<PAGE>

     8.7  Indemnification.  The Lenders agree to indemnify the Agent in its
          ---------------
capacity as such (to the extent not reimbursed by the Borrower, its Subsidiaries
or the other Obligors and without limiting the obligation of such Persons to do
so), ratably according to the respective amounts of their Commitment
Percentages, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs (including, without
limitation, the allocated cost of internal counsel), expenses or disbursements
of any kind whatsoever which may at any time (including, without limitation, at
any time following the payment of the Notes) be imposed on, incurred by or
asserted against the Agent, in its capacity as Agent, but not as a Lender
hereunder, in any way relating to or arising out of this Agreement, any of the
other Loan Documents or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by the Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such
--------
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements to the extent resulting from the Agent's gross
negligence or willful misconduct. The agreements in this Section shall survive
the payment of the Notes and all other amounts payable hereunder.

     8.8  The Agent in Its Individual Capacity.  The Agent and its Affiliates
          ------------------------------------
may make loans to, accept deposits from and generally engage in any kind of
business with the Borrower, any Subsidiary and the other Obligors as though the
Agent were not the Agent hereunder and under the other Loan Documents. With
respect to the Agent, the Loans made by the Agent, and any Note issued to the
Agent shall have the same rights and powers under this Agreement and the other
Loan Documents as any Lender and may exercise the same as though it were not the
Agent, and the terms "Lender" and "Lenders" shall include the Agent in its
individual capacity.

     8.9  Successor Agent.  The Agent may resign as Agent upon 30 days' notice
          ---------------
to the Lenders. If the Agent shall resign as Agent under this Agreement and the
other Loan Documents, then the Majority Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall be
approved by the Borrower (which consent shall not be unreasonably withheld),
whereupon such successor agent shall succeed to the rights, powers and duties of
the Agent and the term "Agent" shall mean such successor agent, effective upon
its appointment, and the former Agent's rights, powers and duties as Agent shall
be terminated, without any other or further act or deed on the part of such
former Agent or any of the parties to this Agreement or any holders of the
Notes. After any retiring Agent's resignation as Agent, the provisions of this
Section shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Agreement and the other Loan
Documents. Further, if the Agent no longer has any Loans or Commitment
hereunder, the Agent shall immediately resign and shall be replaced, and have
the benefits, as set forth in this Section 8.9.

     SECTION 9.  MISCELLANEOUS

     9.1  Amendments and Waivers.  Neither this Agreement, any Note, any other
          ----------------------
Loan Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section. With the
prior written consent of the Majority Lenders and the Borrower (and, in the case
of any Loan Document other than this Agreement, the relevant Obligor), the
Borrower may, from time to time, enter into written amendments,

                                      -52-
<PAGE>

supplements or modifications hereto and to the Notes and the other Loan
Documents for the purposes of adding any provisions to this Agreement or the
Notes or the other Loan Documents or changing in any manner the rights of the
Lenders, the Borrower or any other Obligor hereunder or thereunder or waiving,
on such terms and conditions as may be specified in such instrument, any of the
requirements of this Agreement or the Notes or the other Loan Documents or any
Default and its consequences; provided, however, that no such waiver and no such
                              --------  -------
amendment, supplement or modification shall (i) (a) reduce the amount or extend
the maturity of any Note or any installment due thereon, or reduce the rate or
extend the time of payment of interest thereon, or reduce the amount or extend
the time of payment of any fee, indemnity or reimbursement payable to any Lender
hereunder, or change the amount of any Lender's Commitment, in each case without
the written consent of the Lender affected thereby; or (b) amend, modify or
waive any provision of this Section 9.1 or reduce the percentage specified in or
otherwise modify the definition of Majority Lenders, or consent to the
assignment or transfer by any Obligor of any of its rights and obligations under
this Agreement and the other Loan Documents; or (c) release any Obligor from any
liability under its respective Loan Documents; or (d) release any material
portion of the Collateral or any material portion of the Guarantor Collateral,
except for any Asset Disposition or release of Lien permitted by this Agreement
or any other Loan Document; or (e) amend, modify or waive, directly or
indirectly, any of the provisions of Section 2.1(f) or 2.9; or (f) amend, modify
or waive any provision of this Agreement requiring the consent or approval of
all Lenders; or (g) increase the amount of the Aggregate Commitment, in each
case set forth in clauses (i)(b) through (i)(g) above without the written
consent of all the Lenders; or (ii) amend, modify or waive any provision of
Section 8 without the written consent of the then Agent. Any such waiver and any
such amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Borrower, the other Obligors, the Lenders,
the Agent and all future holders of the Notes. In the case of any waiver, the
Borrower, the other Obligors, the Lenders and the Agent shall be restored to
their former position and rights hereunder and under the outstanding Notes and
any other Loan Documents, and any Default waived shall be deemed to be cured and
not continuing; but no such waiver shall extend to any subsequent or other
Default, or impair any right consequent thereon.

     9.2  Notices.  All notices, requests and demands or other communications to
          -------
or upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered by hand, or 3 days
after being deposited in the United States mail, certified and postage prepaid
and return receipt requested, or, in the case of telecopy notice, when received,
in each case addressed as follows in the case of the Borrower and the Agent, and
as set forth on the signature pages hereto, or in the Assignment and Acceptance
pursuant to which a Person becomes a party hereto, in the case of the Lenders,
or to such other address as may be hereafter notified by the respective parties
hereto and any future holders of the Notes:

The Borrower:

                                      -53-
<PAGE>

                              LCG Acquisition Corporation
                              2425 Olympic Boulevard, Suite 6000 West
                              Santa Monica, California 90404
                              Attention:  Walter F. Ulloa
                                          Philip C. Wilkinson
                                          Jeanette Tully
                              Telecopy:   (310) 447-3899

                              With a copy to (which shall not constitute notice
                              to the Borrower):

                              Thompson Hine & Flory, LLP
                              1920 N Street, N.W.
                              Washington, DC 20036-1601
                              Attention:  Barry A. Friedman, Esq.
                              Telecopy:   (202) 331-8330

                              and

                              Zevnik Horton Guibord
                              McGovern Palmer & Fognani, L.L.P.
                              101 West Broadway, 17th Floor
                              San Diego, California 92101
                              Attention:  Kenneth D. Polin, Esq.
                              Telecopy:   (619) 515-9628

The Agent:                    Union Bank of California, N.A
                              445 South Figueroa Street
                              Los Angeles, California 90071
                              Attention:  Lena M. Bryant
                              Telecopy:   (213) 236-5747

provided that any notice, request or demand to or upon the Agent or the Lenders
--------
pursuant to Section 2.1, 2.2 or 2.4 shall not be effective until received.

     9.3  No Waiver; Cumulative Remedies.  No failure to exercise and no delay
          ------------------------------
in exercising, on the part of the Agent or any Lender, any right, remedy, power
or privilege hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law.

     9.4  Survival of Representations and Warranties.  All representations and
          ------------------------------------------
warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and the Notes.

                                      -54-
<PAGE>

     9.5  Payment of Expenses and Taxes.  The Borrower agrees (a) to pay to
          -----------------------------
reimburse the Agent for all its reasonable costs and out-of-pocket expenses
(including travel and other expenses incurred by it or its agents in connection
with performing due diligence with regard hereto) incurred in connection with
the development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the Notes and the other Loan Documents and
any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and
thereby (including those contemplated to occur on the Closing Date), including,
without limitation, syndication efforts in connection with this Agreement and
the reasonable fees and disbursements of counsel to the Agent (including special
counsel with regard to FCC matters, special counsel with regard to Collateral or
Guarantor Collateral located outside of California and the allocated costs of
internal counsel to the Agent), which counsel fees shall be subject to the
approval of the Borrower, such approval not to be unreasonably withheld or
delayed, (b) after the occurrence and during the continuance of a Default, to
pay or reimburse the Agent and each Lender for all its reasonable costs and out-
of-pocket expenses incurred in connection with the enforcement or preservation
of any rights under this Agreement, the Notes, the other Loan Documents and any
such other documents or in connection with any refinancing or restructuring of
the credit arrangements provided under this Agreement in the nature of a "work-
out" or of any insolvency or bankruptcy proceeding, including, without
limitation, reasonable legal fees and disbursements of counsel to the Agent and
each Lender (including the allocated costs of internal counsel to the Agent),
(c) to pay, and indemnify and hold harmless each Lender and the Agent from any
and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other taxes, if any,
which may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of,
or any waiver or consent under or in respect of, this Agreement, the Notes, the
other Loan Documents and any such other documents and (d) to pay, and indemnify
and hold harmless each Lender and the Agent from and against, any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs (including the allocated cost of internal counsel and the reasonable legal
fees and disbursements of outside counsel to the Lenders and the Agent),
expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of this
Agreement, the Notes and the other Loan Documents, the Merger or the use of the
proceeds of the Loans and any such other documents (all the foregoing,
collectively, the "indemnified liabilities" irrespective of whether the
transactions contemplated by this Agreement and the other Loan Documents are
consummated), provided, that the Borrower shall have no obligation hereunder to
              --------
the Agent or any Lender with respect to indemnified liabilities arising from the
gross negligence or willful misconduct of the Agent or such Lender or their
agents or attorneys-in-fact. The agreements in this Section shall survive
repayment of the Notes and all other amounts payable hereunder. The Agent and
the Lenders agree to provide reasonable details and supporting information
concerning any costs and expenses required to be paid by the Borrower pursuant
to the terms hereof.

     9.6  Successors and Assigns; Participations; Purchasing Lenders.
          -----------------------------------------------------------

     (a)  This Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Agent, all future holders of the Notes and their
respective successors and

                                      -55-
<PAGE>

assigns, except that the Borrower may not assign, transfer or delegate any of
its rights or obligations under this Agreement without the prior written consent
of each Lender.

     (b)  Any Lender may, in the ordinary course of its commercial banking or
finance business and in accordance with applicable law, at any time sell to one
or more banks or other entities ("Participants") participating interests in any
                                  ------------
Loan owing to such Lender, any Note held by such Lender, any Commitment of such
Lender or any other interest of such Lender hereunder and under the other Loan
Documents; provided that the holder of any such participation, other than an
           --------
Affiliate of such Lender, shall not be entitled to require such Lender to take
or omit to take any action hereunder except action directly affecting the
extension of the maturity of any portion of the principal amount of a Loan or
any portion of interest or fees related thereto allocated to such participation
or a reduction of the principal amount or principal payment amount of or the
rate of interest payable on the Loans or any fees related thereto, or a release
of any Obligor or any substantial portion of the Collateral or the Guarantor
Collateral or any increase in participation amounts. In the event of any such
sale by a Lender of participating interests to a Participant, such Lender's
obligations under this Agreement to the other parties to this Agreement shall
remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Note for
all purposes under this Agreement and the other Loan Documents, and the Borrower
and the Agent shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
the other Loan Documents. The Borrower agrees that if amounts outstanding under
this Agreement and the Notes are due or unpaid, or shall have been declared or
shall have become due and payable upon the occurrence of an Event of Default,
each Participant shall be deemed to have the right of setoff in respect of its
participating interest in amounts owing under this Agreement and any Note to the
same extent as if the amount continuing of its participating interest were owing
directly to it as a Lender under this Agreement or any Note, provided that such
                                                             --------
Participant shall only be entitled to such right of setoff if it shall have
agreed in the agreement pursuant to which it shall have acquired its
participating interest to share with the Lenders the proceeds thereof as
provided in Section 9.7. The Borrower also agrees that each Participant shall be
entitled to the benefits of Sections 2.11, 2.12 and 2.13 with respect to its
participation in the Commitments and the Loans outstanding from time to time;
provided, that no Participant shall be entitled to receive any greater amount
--------
pursuant to such Sections than the transferor Lender would have been entitled to
receive in respect of the amount of the participation transferred by such
transferor Lender to such Participant had no such transfer occurred.

     (c)  Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time sell to any of its
Affiliates or to any Lender, any Affiliate thereof or to one or more additional
lenders or financial institutions ("Purchasing Lenders"), which additional
                                    ------------------
lenders shall be subject to the consent of the Borrower (such consent not to be
unreasonably withheld and not to be required if a Default has occurred and is
continuing) all or any part of its rights and obligations under this Agreement,
the Notes and the other Loan Documents pursuant to an Assignment and Acceptance
substantially in the form of Exhibit B, executed by such Purchasing Lender and
such transferor Lender and delivered to the Agent for its acceptance and
recording in the Register (as defined in (d) below), provided, that any such
                                                     --------
sale must result in the Purchasing Lender having at least $5,000,000 in
aggregate amount of obligations under this Agreement, the Notes and the other
Loan Documents. Upon

                                      -56-
<PAGE>

such execution, delivery, acceptance and recording, from and after the transfer
effective date determined pursuant to such Assignment and Acceptance, (x) the
Purchasing Lender thereunder shall be a party hereto and, to the extent provided
in such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder with a Commitment as set forth therein, and (y) the transferor Lender
thereunder shall, to the extent of such assigned portion and as provided in such
Assignment and Acceptance, be released from its obligations under this Agreement
and the other Loan Documents (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of a transferor Lender's rights and
obligations under this Agreement, such transferor Lender shall cease to be a
party hereto). Such Assignment and Acceptance shall be deemed to amend this
Agreement to the extent, and only to the extent, necessary to reflect the
addition of such Purchasing Lender and the resulting adjustment of Commitment
Percentages arising from the purchase by such Purchasing Lender of all or a
portion of the rights and obligations of such transferor Lender under this
Agreement, the Notes and the other Loan Documents. On or prior to the transfer
effective date determined pursuant to such Assignment and Acceptance, the
Borrower, at its own expense, shall execute and deliver to the Agent in exchange
for the surrendered Note or Notes a new Note or Notes to the order of such
Purchasing Lender in an amount equal to the Commitment assumed by it pursuant to
such Assignment and Acceptance, and if the transferor Lender has retained a
Commitment hereunder, new Notes to the order of the transferor Lender in an
amount equal to the Commitments retained by it hereunder. Such new Notes shall
be dated the Closing Date and shall otherwise be in the form of the Notes
replaced thereby. The Notes surrendered by the transferor Lender shall be
returned by the Agent to the Borrower marked "canceled."

     (d)  The Agent shall maintain at its address referred to in Section 9.2 a
copy of each Assignment and Acceptance delivered to it and a register (the
"Register") for the recordation of the names and addresses of the Lenders and
 --------
the Commitment of, and principal amount of the Loans owing to each Lender from
time to time. The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrower, the Agent and the Lenders may treat each
Person whose name is recorded in the Register as the owner of the Loans recorded
therein for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

     (e)  Upon its receipt of an Assignment and Acceptance executed by a
transferor Lender and Purchasing Lender (and, in the case of a Purchasing Lender
that is not then a Lender or an Affiliate thereof, by the Borrower and the
Agent) together with payment to the Agent (except in the case of a Lender
assigning to its Affiliate) of a registration and processing fee of $3,500, the
Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on the
effective date determined pursuant thereto record the information contained
therein in the Register and give notice of such acceptance and recordation to
the Lenders and the Borrower.

     (f)  The Borrower authorizes each Lender to disclose to any Participant or
Purchasing Lender (each, a "Transferee") and any prospective Transferee any
                            ----------
and all financial information in such Lender's possession concerning the
Borrower and its Subsidiaries and Affiliates, which has been delivered to such
Lender by or on behalf of the Borrower pursuant to this Agreement or any other
Loan Document or which has been delivered to such Lender by or on behalf of the
Borrower in connection with such Lender's credit evaluation of the Borrower and
its Subsidiaries and Affiliates prior to becoming a party to this Agreement.

                                      -57-
<PAGE>

     (g)  If, pursuant to this Section, any interest in this Agreement or any
Note is transferred to any Transferee which is organized under the laws of any
jurisdiction other than the United States or any state thereof, the transferor
Lender shall cause such Transferee, concurrently with the effectiveness of such
transfer, (i) to represent to the transferor Lender and the Agent (for the
benefit of the transferor Lender, the Agent and the Borrower) that under
applicable law and treaties no taxes will be required to be withheld by the
Agent, the Borrower or the transferor Lender with respect to any payments to be
made to such Transferee in respect of the Loans, (ii) to furnish to the
transferor Lender, the Agent and the Borrower either U.S. Internal Revenue
Service Form W-9, W-8BEN or W-8ECI (as applicable to it) (wherein such
Transferee claims entitlement to complete exemption from U.S. federal
withholding tax on all interest payments hereunder) and (iii) to agree (for the
benefit of the transferor Lender, the Agent and the Borrower) to provide the
transferor Lender, the Agent and the Borrower a new Form W-9, W-8BEN or W-8ECI
(as applicable to it) upon the expiration or obsolescence of any previously
delivered form and comparable statements in accordance with applicable U.S. laws
and regulations and amendments duly executed and completed by such Transferee,
and to comply from time to time with all applicable U.S. laws and regulations
with regard to such withholding tax exemption.

     (h)  Nothing herein shall prohibit any Lender from pledging or assigning
any of its rights under its Notes to any Federal Reserve Bank in accordance with
applicable law.

     9.7  Adjustments; Set-Off.
          ---------------------

     (a)  If any Lender (a "benefited Lender") shall at any time receive any
                            ----------------
payment of all or part of its Loans or interest thereon, or fees, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off,
pursuant to events or proceedings of the nature referred to in Section 7(g), or
otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of such other Lender's Loans or
interest thereon, or fees, such benefited Lender shall purchase for cash from
the other Lenders such portion of each such other Lender's Loans or fees, or
shall provide such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such benefited Lender to
share the excess payment or benefits of such collateral or proceeds ratably with
each of the Lenders; provided, however, that if all or any portion of such
                     --------  -------
excess payment or benefits is thereafter recovered from such benefited Lender,
such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest. The Borrower agrees that
each Lender so purchasing a portion of another Lender's Loan may exercise all
rights of payment (including, without limitation, rights of set-off) with
respect to such portion as fully as if such Lender were the direct holder of
such portion.

     (b)  In addition to any rights and remedies of the Lenders provided by law,
with the prior consent of the Majority Lenders, each Lender shall have the
right, exercisable upon the occurrence and during the continuance of an Event of
Default and acceleration of the Obligations pursuant to Section 7, without prior
notice to the Borrower, any such notice being expressly waived by the Borrower
to the extent permitted by applicable law, to set-off and appropriate and apply
against any such Obligations any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims in any currency, in each case whether direct or indirect,
absolute or contingent, matured or unmatured,

                                      -58-
<PAGE>

at any time held or owing by such Lender or any branch or agency thereof or bank
controlling such Lender to or for the credit or the account of the Borrower.
Each Lender agrees promptly to notify the Borrower after any such set-off and
application made by such Lender, provided that the failure to give such notice
                                 --------
shall not affect the validity of such set-off and application.

     9.8  Counterparts.  This Agreement may be executed by one or more of the
          ------------
parties to this Agreement on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement.

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

     9.10 Integration.  This Agreement represents the entire agreement of the
          -----------
Borrower, the Agent and the Lenders with respect to the subject matter hereof,
and there are no promises, undertakings, representations or warranties by the
Agent or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the other Loan Documents.

     9.11 GOVERNING LAW.  THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND
          -------------
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
CALIFORNIA (WITHOUT REFERENCE TO ITS CHOICE OF LAW RULES).

     9.12 Alternative Dispute Resolution.
          -------------------------------

     (a)  Claims Subject To Judicial Reference; Selection Of Referee.  All
          ----------------------------------------------------------
Claims, including any and all questions of law or fact relating thereto, shall,
at the written request of any Party, be determined by Reference. The Parties
shall select a single neutral referee, who shall be a retired state or federal
judge with at least five years of judicial experience in civil matters. In the
event that the Parties cannot agree upon a referee, the referee shall be
appointed by the court. The Parties shall equally bear the fees and expenses of
the referee unless the referee otherwise provides in the statement of decision.

     (b)  Waiver Of Jury Trial.  In connection with a Reference or any other
          --------------------
action or proceeding, whether brought in state or federal court, the Parties
hereby expressly, intentionally and deliberately waive any right they may
otherwise have to trial by jury of any Claim.

     (c)  Conduct Of Reference.  Except as provided in this Section 9.12, the
          --------------------
Reference shall be conducted pursuant to Applicable State Law. The referee shall
determine all issues relating to the applicability, interpretation, legality and
enforceability of this Section 9.12.

     (d)  Provisional Remedies, Self-Help And Foreclosure.  No provision of this
          -----------------------------------------------
Section 9.12 shall limit the right of any party to (i) exercise self-help
remedies including set-off,

                                      -59-
<PAGE>

(ii) foreclose against or sell any Collateral or Guarantor Collateral, by power
of sale or otherwise or (iii) obtain or oppose provisional or ancillary remedies
from a court of competent jurisdiction before, after or during the pendency of
the Reference. The exercise of, or opposition to, any such remedy does not waive
the right of any Party to Reference pursuant to this Section 9.12.

     (e)  Limitation On Damages.  In the event that punitive damages are
          ---------------------
permitted under Applicable State Law, the amount thereof shall not exceed a sum
equal to three times the amount of actual damages as determined by the referee.

     (f)  Severability.  In the event that any provision of this Section 9.12 is
          ------------
found to be illegal or unenforceable, the remainder of this Section 9.12 shall
remain in full force and effect.

     (g)  Miscellaneous.  In the event that multiple Claims are asserted, some
          -------------
of which are found not subject to this Section 9.12, the Parties agree to stay
the proceedings of the Claims not subject to this Section 9.12 until all other
Claims are resolved in accordance with this Section. In the event that Claims
are asserted against multiple parties, some of whom are not subject to this
Section, the Parties agree to sever the Claims subject to this Section 9.12 and
resolve them in accordance with this Section 9.12. In the event of any challenge
to the legality or enforceability of this Section 9.12, the prevailing Party
shall be entitled to recover the costs and expenses, including reasonable
attorneys' fees, incurred by it in connection therewith. Applicable State Law
shall govern the interpretation of this Section 9.12.

     (h)  Defined Terms.  As used in this Section 9.12, the following terms
          -------------
shall have the respective meanings set forth below:

     "Applicable State Law":  the law of the State of California; provided,
      --------------------
however, that if any Party seeks to (i) exercise self-help remedies, including
set-off, (ii) foreclose against or sell any Collateral or Guarantor Collateral,
by power of sale or otherwise or (iii) obtain or oppose provisional or ancillary
remedies from a court of competent jurisdiction before, after or during the
pendency of the Reference, the law of the state where such Collateral or
Guarantor Collateral, as the case may be, is located shall govern the exercise
of or opposition to such rights and remedies.

     "Claim":  any claim, cause of action, action, dispute or controversy
      -----
between or among the Parties, whether sounding in contract, tort or otherwise,
which arises out of or relates to: (i) any of the Loan Documents; (ii) any
negotiations or communications relating to any of the Loan Documents, whether or
not incorporated into the Loan Documents or any indebtedness evidenced thereby;
or (iii) any alleged agreements, promises, representations or transactions in
connection therewith.

     "Party":  any Obligor, any Lender or the Agent.
      -----

     "Reference":  a judicial reference conducted pursuant to this Section 9.12
      ---------
in accordance with Applicable State Law, as in effect at the time the referee is
selected pursuant to Section 9.12(a).

     9.13 Acknowledgements.  The Borrower hereby acknowledges that:
          ----------------

                                      -60-
<PAGE>

     (a)  its has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the Notes and the other Loan Documents;

     (b)  neither the Agent nor any Lender has any fiduciary relationship to the
Borrower solely by virtue of any of the Loan Documents, and the relationship
pursuant to the Loan Documents between the Agent and the Lenders, on one hand,
and the Borrower on the other hand, is solely that of creditor and debtor; and

     (c)  no joint venture exists among the Lenders or among the Borrower, on
one hand and the Lenders, on the other hand.

     9.14 Headings.  Section headings herein are included for convenience of
          --------
reference only and shall not constitute a part of this Agreement for any other
purpose.

     9.15 Copies of Certificates, Etc.  Whenever the Borrower is required to
          ---------------------------
deliver notices, certificates, opinions, statements or other information
hereunder to the Agent for delivery to any Lender (including under Article 4),
it shall do so in such number of copies as the Agent shall reasonably specify.

     9.16 Publicity.  The Agent shall have the right to review and approve, in
          ---------
advance, any public announcements (in any form) and any filings describing or
quoting from the credit arrangements reflected in this Agreement and the other
Loan Documents, provided, however, that the Borrower (i) shall be permitted to
                --------  -------
file copies of any Loan Document with the FCC or any other governmental agency
as required by law and (ii) shall also be permitted to disclose information
concerning the Loan Documents if the Borrower's attorneys reasonably believe
that such disclosure is required by law.

     9.17 Confidentiality.  The Lenders shall take normal and reasonable
          ---------------
precautions to maintain the confidentiality of all non-public information
obtained pursuant to the requirements of this Agreement which has been
identified as such by the Borrower, but may, in any event, make disclosures (i)
reasonably required by any bona fide transferee, assignee or participant in
connection with the contemplated transfer or assignment of any of the
Commitments or Loans or participations therein or (ii) as required or requested
by any governmental agency or representative thereof or as required pursuant to
legal process or (iii) to its attorneys and accountants or (iv) as required by
law or (v) in connection with litigation involving any Lender; provided that
such transferee, assignee or participant agrees to comply with the provisions of
this Section 9.17 unless specifically prohibited by applicable law or court
order. In no event shall any Lender be obligated or required to return any
materials furnished by the Borrower or any Subsidiary.

                                      -61-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Los Angeles, California by their proper and duly
authorized officers as of the day and year first above written.

                           BORROWER
                           --------

                           LCG ACQUISITION CORPORATION

                           By: /s/ Walter F. Ulloa
                           Name:   Walter F. Ulloa
                           Title:  Chairman/CEO

                           AGENT
                           -----

                           UNION BANK OF CALIFORNIA, N.A., as Agent

                           By: /s/ Lena M. Bryant
                           Name:   Lena M. Bryant
                           Title:  Vice President
<PAGE>

                           LENDERS
                           -------

                           UNION BANK OF CALIFORNIA, N.A.,
                           as a Lender

                           By: /s/ Lena M. Bryant
                           Name:   Lena M. Bryant
                           Title:  Vice President

                           Commitment:  $115,000,000

                           Address for Notices
                           -------------------

                           (a)  For Credit:
                                ----------

                           445 South Figueroa Street
                           Los Angeles, California 90071
                           Attention:  Lena M. Bryant
                           Telephone:  (213) 236-7535
                           Facsimile:  (213) 236-5747

                           (b)  For Operations:
                                --------------

                           445 South Figueroa Street
                           Los Angeles, California 90071
                           Attention:  Liliane Biermann
                           Telephone:  (213) 236-4054
                           Facsimile:  (213) 236-5276

                           Approved Lending Offices
                           ------------------------

                           Applicable Lending Office for Base Rate Loans:
                           445 South Figueroa Street
                           Los Angeles, California 90071

                           Applicable Lending Office for LIBOR Loans:
                           445 South Figueroa Street
                           Los Angeles, California 90071<PAGE>

                                                                   EXHIBIT 10.10

                               SECURITY AGREEMENT
                               ------------------

     This SECURITY AGREEMENT, is dated as of April 20, 2000, and made by LATIN
COMMUNICATIONS GROUP INC., a Delaware corporation (the "Grantor"), in favor of
                                                        -------
UNION BANK OF CALIFORNIA, N.A., a national banking association, as agent (the

"Agent") for the Lenders (as defined in the Loan Agreement referred to below,
------
the "Lenders").
     -------

                                    RECITALS
                                    --------

     A.  Concurrently herewith, the Agent, the Lenders and LCG Acquisition
Corporation ("LCGAC") are entering into a Term Loan Agreement dated as of April
              -----
20, 2000 (said Agreement, as it may hereafter be amended, modified or restated
from time to time, being called the "Loan Agreement").
                                     --------------

     B.  LCGAC is a wholly-owned subsidiary of Entravision Communications
Company, L.L.C., a Delaware limited liability company ("Entravision"), and was
                                                        -----------
formed for the purpose of consummating the Merger described below. Concurrently
with the funding contemplated by the Loan Agreement, LCGAC will merge with and
into the Grantor, with the Grantor being the survivor of such merger (the
"Merger"). As a result of the Merger, the Grantor will assume all obligations
 ------
and liabilities of LCGAC under the Loan Agreement. Entravision owns and operates
a number of successful Spanish language radio and television stations, and the
Grantor anticipates benefiting from becoming a subsidiary of Entravision.

     C.  It is a condition precedent to the extension of credit by the Lenders
under the Loan Agreement that the Grantor shall have executed and delivered this
Agreement.

     D.  Terms defined in the Loan Agreement and not otherwise defined herein
have the same respective meanings when used herein, and the rules of
interpretation set forth in Section 1.2 of the Loan Agreement are incorporated
herein by reference.

                                   AGREEMENT
                                   ---------

     NOW, THEREFORE, in order to induce the Lenders to enter into the Loan
Agreement and for other good and valuable consideration, the receipt and
adequacy of which hereby are acknowledged, the Grantor hereby represents,
warrants, covenants, agrees, assigns and grants as follows:

     1.  Definitions  Unless the context otherwise requires, terms defined in
         -----------
the Uniform Commercial Code of the State of California (the "Uniform Commercial
                                                             ------------------
Code") and not otherwise defined in this Agreement or in the Loan Agreement
----
shall have the meanings defined for those terms in the Uniform Commercial Code.
In addition, the following terms shall have the meanings respectively set forth
after each:

     "Certificates" means all certificates, instruments and other documents now
      ------------
or hereafter representing or evidencing any Pledged Securities or any Pledged
Limited Liability Company Interests.
<PAGE>

     "Collateral" means and includes all present and future right, title and
      ----------
interest of the Grantor in or to any personal property or assets whatsoever,
whether now owned or existing or hereafter arising or acquired and wheresoever
located, and all rights and powers of the Grantor to transfer any interest in or
to any personal property or assets whatsoever, including, without limitation,
any and all of the following personal property:

     (a)    All present and future accounts, accounts receivable, agreements,
guarantees, contracts (including without limitation the Material Contracts),
leases, licenses (including without limitation all licenses of transmitters,
transmitter towers and related equipment other than the FCC licenses), contract
rights and rights to payment (collectively, the "Accounts"), together with all
                                                 ---------
instruments, documents, chattel paper, security agreements, guaranties,
undertakings, surety bonds, insurance policies, notes and drafts, and all forms
of obligations owing to the Grantor or in which the Grantor may have any
interest, however created or arising;

     (b)    All present and future general intangibles, including without
limitation the proprietary rights of the Grantor in all Media Licenses
(including without limitation the FCC licenses for the Stations described in
Schedule 3.9 attached to the Loan Agreement and including, without limitation,
------------
goodwill, going concern value, all of the Grantor's rights under or relating to
any Media License and the proceeds of any Media License and the right to receive
money or other consideration upon the sale, assignment or transfer of any Media
License; provided, however, that the Collateral does not include at any time any
         --------- -------
license granted by the FCC to the extent, but only to the extent, that the
Grantor is prohibited at that time from granting a security interest therein
pursuant to the Communications Act, but includes, to the maximum extent
permitted by law, all rights incident or appurtenant to such Media License and
the rights to receive all proceeds derived from or in connection with the sale,
assignment or transfer of such Media License), all tax refunds of every kind and
nature to which the Grantor now or hereafter may become entitled, however
arising, all other refunds, all commitments to extend financing to the Grantor,
and all deposits, goodwill, choses in action, trade secrets, computer programs,
software, customer lists, trademarks, trade names, patents, licenses,
copyrights, technology, processes, proprietary information and insurance
proceeds, including, without limitation, the Copyrights, the Patents, the Marks
and the Programs, and the goodwill of the Grantor's business connected with and
symbolized by the Marks;

     (c)    All present and future demand, time, savings, passbook, deposit and
like accounts (general or special) (collectively, the "Deposit Accounts") in
                                                       ----------------
which the Grantor has any interest which are maintained with any bank, savings
and loan association, credit union or like organization, including, without
limitation, each account listed on Schedule D attached hereto and made a part
                                   ----------
hereof, and all money, cash and cash equivalents of the Grantor, whether or not
deposited in any Deposit Account;

     (d)    All present and future books and records, including, without
limitation, books of account and ledgers of every kind and nature, all
electronically recorded data relating to the Grantor or the business thereof,
all receptacles and containers for such records, and all files and
correspondence;

     (e)    All present and future goods, including, without limitation, all
equipment, machinery, cameras, recording equipment, transmitters, transmitting
towers, broadcasting

                                      -2-
<PAGE>

equipment, videotapes, audio tapes and other recorded media, tools, molds, dies,
furniture, furnishings, fixtures, trade fixtures, printing equipment, motor
vehicles and all other goods used in connection with or in the conduct of the
Grantor's business, including, but not limited to, all goods as defined in
Section 9-109(2) of the Uniform Commercial Code (collectively, the "Equipment");
                                                                    ---------

     (f)    All present and future inventory and merchandise, including, without
limitation, all present and future goods held for sale or lease or to be
furnished under a contract of service, all videotapes, audio tapes and other
recorded media, all raw materials, work in process and finished goods, all
packing materials, supplies and containers relating to or used in connection
with any of the foregoing, and all bills of lading, warehouse receipts and
documents of title relating to any of the foregoing (collectively, the
"Inventory");
 ---------

     (g)    All present and future stocks, bonds, debentures, securities,
subscription rights, options, warrants, puts, calls, certificates, partnership
interests, limited liability company interests, joint venture interests and
investment and/or brokerage accounts, including without limitation the
Certificates, the Pledged Securities, the Pledged Partnership Interests and the
Pledged Limited Liability Company Interests, and all rights, preferences,
privileges, dividends, distributions (in cash or in kind), redemption payments
or liquidation payments with respect thereto;

     (h)    All present and future accessions, appurtenances, components,
repairs, repair parts, spare parts, replacements, substitutions, additions,
issue and/or improvements to or of or with respect to any of the foregoing;

     (i)    All other tangible and intangible personal property of the Grantor;

     (j)    All rights, remedies, powers and/or privileges of the Grantor with
respect to any of the foregoing; and

     (k)    Any and all proceeds and products of the foregoing, including
without limitation, all money, accounts, general intangibles, deposit accounts,
documents, instruments, chattel paper, goods, insurance proceeds and any other
tangible or intangible property received upon the sale or disposition of any of
the foregoing.

     "Copyrights" means all:
      ----------

             (i)  copyrights, whether or not published or registered under the
     Copyright Act of 1976, 17 U.S.C. Section 101 et seq., as the same shall be
     amended from time to time, and any predecessor or successor statute thereto
     (the "Copyright Act"), and applications for registration of copyrights, and
           -------------
     all works of authorship and other intellectual property rights therein,
     including, without limitation, copyrights for computer programs, source
     code and object code data bases and related materials and documentation and
     including, without limitation, the registered copyrights and copyright
     applications listed on Schedule 3.5A attached to the Loan Agreement (as
                            -------------
     such Schedule may be supplemented from time to time in accordance with the
     terms of the Loan Agreement), and (a) all renewals, revisions, derivative
     works, enhancements, modifications, updates, new releases and other
     revisions thereof, (b) all income, royalties, damages and payments now

                                      -3-
<PAGE>

     and hereafter due and/or payable with respect thereto, including, without
     limitation, payments under all licenses entered into in connection
     therewith and damages and payments for past or future infringements
     thereof, (c) the right to sue for past, present and future infringements
     thereof and (d) all of the Grantor's rights corresponding thereto
     throughout the world;

            (ii)   rights under or interests in any copyright license agreements
     with any other party, whether the Grantor is a licensee or licensor under
     any such license agreement, including, without limitation, the copyright
     license agreements listed on Schedule 3.5A attached to the Loan Agreement
                                  -------------
     (as such Schedule may be supplemented from time to time in accordance with
     the terms of the Loan Agreement), and the right to use the foregoing in
     connection with the enforcement of the Lenders' rights under the Loan
     Documents; and

            (iii)  copyrightable materials now or hereafter owned by the
     Grantor, including Programs not copyrighted, all tangible property
     embodying the copyrights described in clause (i) hereof or such
     copyrightable materials, and all tangible property covered by the licenses
     described in clause (ii) hereof.

     "Limited Liability Company Acknowledgement" shall have the meaning ascribed
      -----------------------------------------
to it in Section 4(b) of this Agreement.

     "Limited Liability Company Assets" means all assets, whether tangible or
      --------------------------------
intangible and whether real, personal or mixed (including, without limitation,
all limited liability company capital and interests in other limited liability
companies), at any time owned or represented by any Limited Liability Company
Interests.

     "Limited Liability Company Interests" means the entire limited liability
      -----------------------------------
company interest at any time owned by the Grantor in any Pledged Entity.

     "Limited Liability Company Notice" shall have the meaning ascribed to it in
      --------------------------------
Section 4(b) of this Agreement.

     "Marks" means all (i) trademarks, trademark registrations, interests under
      -----
trademark license agreements, tradenames, trademark applications, service marks,
business names, trade styles, designs, logos and other source or business
identifiers for which registrations have been issued or applied for in the
United States Patent and Trademark Office or in any other office or with any
other official anywhere in the world or which are used in the United States or
any state, territory or possession thereof, or in any other place, nation or
jurisdiction anywhere in the world including, without limitation, the
trademarks, trademark registrations, applications, service marks, business
names, trade styles, design logos and other source or business identifiers
listed on Schedule 3.5A attached to the Loan Agreement (as such Schedule may be
          -------------
supplemented from time to time in accordance with the terms of the Loan
Agreement), (ii) licenses pertaining to any such mark whether the  Grantor is
licensor or licensee including, without limitation, the licenses listed on
Schedule 3.5A to the Loan Agreement (as such Schedule may be supplemented from
-------------
time to time in accordance with the terms of the Loan Agreement), (iii) all
income, royalties, damages and payments now and hereafter due and/or payable
with respect to any such mark or

                                      -4-
<PAGE>

any such license, including, without limitation, damages and payments for past,
present or future infringements thereof, (iv) rights to sue for past, present
and future infringements thereof, (v) rights corresponding thereto throughout
the world, (vi) all product specification documents and production and quality
control manuals used in the manufacture of products sold under or in connection
with such marks, (vii) all documents that reveal the name and address of all
sources of supply of, and all terms of purchase and delivery for, all materials
and components used in the production of products sold under or in connection
with such marks, (viii) all documents constituting or concerning the then
current or proposed advertising and promotion by the Grantor, its subsidiaries
or licensees of products sold under or in connection with such marks, including,
without limitation, all documents that reveal the media used or to be used and
the cost for all such advertising conducted within the described period or
planned for such products and (ix) renewals and proceeds of any of the
foregoing.

     "Patents" means all (i) letters patent, design patents, utility patents,
      -------
inventions and trade secrets, all patents and patent applications in the United
States Patent and Trademark Office, and interests under patent license
agreements, including, without limitation, the inventions and improvements
described and claimed therein, including, without limitation, those patents
listed on Schedule 3.5A attached to the Loan Agreement (as such Schedule may be
          -------------
supplemented from time to time in accordance with the terms of the Loan
Agreement), (ii) licenses pertaining to any patent whether the Grantor is
licensor or licensee, (iii) income, royalties, damages and payments now and
hereafter due and/or payable under and with respect thereto, including, without
limitation, damages and payments for past, present or future infringements
thereof, (iv) rights to sue for past, present and future infringements thereof,
(v) rights corresponding thereto throughout the world in all jurisdictions in
which such patents have been issued or applied for and (vi) the reissues,
divisions, continuations, renewals, extensions and continuations-in-part of any
of the foregoing.

     "Pledged Collateral" means the Certificates, the Pledged Securities, the
      ------------------
Pledged Partnership Interests and the Pledged Limited Liability Company
Interests.

     "Pledged Entity" means each limited liability company set forth in Schedule
      --------------                                                    --------
A attached hereto, together with any other limited liability company in which
-
the Grantor may have an interest at any time.

     "Pledged Limited Liability Company Interests" means all interests in any
      -------------------------------------------
Pledged Entities held by the Grantor, including, but not limited to, those
Limited Liability Company Interests identified in Schedule A attached hereto, as
                                                  ----------
such Schedule may be supplemented from time to time in accordance with the terms
of this Agreement, including, but not limited to, (i) all the capital thereof
and its interest in all profits, losses, Limited Liability Company Assets and
other distributions in respect thereof; (ii) all other payments due or to become
due to the Grantor in respect of such Limited Liability Company Interests; (iii)
all of the Grantor's claims, rights, powers, privileges, authority, options,
security interests, liens and remedies, if any in respect of such Limited
Liability Company Interests; (iv) all of the Grantor's rights to exercise and
enforce every right, power, remedy, authority, option and privilege relating to
such Limited Liability Company Interests; and (v) all other property hereafter
delivered in substitution for or in addition to any of the foregoing and all
certificates and instruments representing or evidencing such other

                                      -5-
<PAGE>

property received, receivable or otherwise distributed in respect of or in
exchange for any or all thereof.

     "Pledged Partnership Interests" means all interests in any partnership or
      -----------------------------
joint venture held by the Grantor including but not limited to those
partnerships and/or joint ventures identified in Schedule A attached hereto and
                                                 ----------
made a part hereof, as such Schedule may be supplemented from time to time in
accordance with the terms of this Agreement, and all dividends, cash,
instruments and other properties from time to time received, to be received or
otherwise distributed in respect of or in exchange for any or all of such
interests.

     "Pledged Securities" means all shares of capital stock of any issuer in
      ------------------
which the Grantor has an interest, including but not limited to, those shares of
stock identified in Schedule A attached hereto, as such Schedule may be
                    ----------
supplemented from time to time in accordance with the terms of this Agreement,
and all dividends, cash, instruments and other properties from time to time
received, to be received or otherwise distributed in respect of or in exchange
for any or all of such shares.

     "Programs" means all (a) media broadcasting programs originating from the
      --------
Grantor or any Affiliate of the Grantor, all other general intangibles of a like
nature, and all recordings and renewals thereof; and (b) licenses, contracts or
other agreements, whether written or oral, naming the Grantor as licensee or
licensor and providing for the grant of any right to produce, use, sell,
broadcast or rebroadcast any media or broadcasting programs.

     "Secured Party" means, collectively, the Agent and the Lenders.
      -------------

     2.   Creation of Security Interest  The Grantor hereby pledges to the
          -----------------------------
Agent for the ratable benefit of the Lenders, and grants to the Agent for the
ratable benefit of the Lenders a security interest in and to, all right, title
and interest of the Grantor in and to all presently existing and hereafter
acquired Collateral. The security interest and pledge created by this Section 2
shall continue in effect so long as any Obligation (as defined below) remains
unpaid or any Commitment remains in effect.

     3.   Security for Obligations  This Agreement and the security interests
          ------------------------
granted herein secure the prompt payment, in full in cash, and full performance
of, all obligations of the Grantor now or hereafter existing under any Loan
Document, whether for principal, interest, fees, expenses or otherwise,
including without limitation all obligations of the Grantor now or hereafter
existing under this Agreement, and all interest that accrues (whether or not
allowed) at the then applicable rate (including interest at the rate for overdue
payments described in Section 2.6(c) of the Loan Agreement) specified in the
Loan Agreement on all or any part of any of such obligations after the filing of
any petition or pleading against the Grantor for a proceeding under any
bankruptcy or related law (collectively, the "Obligations").
                                              -----------

     4.   Delivery of Pledged Collateral
          ------------------------------

     (a)  Each Certificate shall, on (i) the Closing Date (with respect to
Certificates existing on such date) and (ii) the day on which such Certificate
shall be received or acquired by the Grantor (with respect to Certificates
received or acquired after the Closing Date), be delivered to and held by the
Agent on behalf of the Lenders and shall be in suitable form for

                                      -6-
<PAGE>

transfer by delivery, or shall be accompanied by duly executed undated
endorsements, instruments of transfer or assignment in blank, all in form and
substance reasonably satisfactory to the Agent.

     (b)  With respect to each Limited Liability Company Interest, on (i) the
Closing Date (with respect to Limited Liability Company Interests existing on
such date) and (ii) the day on which any Limited Liability Company Interest
shall be acquired by the Grantor (with respect to Limited Liability Company
Interests acquired after the Closing Date), a notice in the form set forth in
Schedule F attached hereto (the "Limited Liability Company Notice") shall be
----------                       --------------------------------
appropriately completed and delivered to each Pledged Entity, notifying each
Pledged Entity of the existence of this Agreement, a certified copy of this
Agreement shall be delivered by the Grantor to the relevant Pledged Entity, and
the Grantor shall have received and delivered to the Agent a copy of such
Limited Liability Company Notice, along with an acknowledgment in the form set
forth in Schedule F attached hereto (the "Limited Liability Company
         ----------                       -------------------------
Acknowledgment"), duly executed by the relevant Pledged Entity.
--------------

     (c)  Subject to any necessary prior approval of the FCC, the Agent shall
have the right, upon the occurrence and during the continuance of an Event of
Default, without notice to the Grantor, to transfer to or to direct the Grantor
or any nominee of the Grantor to register or cause to be registered in the name
of the Agent or any of its nominees any or all of the Pledged Securities or
Pledged Limited Liability Company Interests. In addition, the Agent shall have
the right at any time to exchange certificates or instruments representing or
evidencing Pledged Securities or Pledged Limited Liability Company Interests for
certificates or instruments of smaller or larger denominations.

     5.   Further Assurances
          ------------------

     (a)  At any time and from time to time at the reasonable written request of
the Agent, the Grantor shall execute and deliver to the Agent, at the Grantor's
expense, all such financing statements and other instruments, certificates and
documents (including notices to financial institutions holding deposit accounts
of the Grantor as to the security interest granted hereby) in form and substance
reasonably satisfactory to the Agent, and perform all such other acts as shall
be necessary or reasonably desirable to fully perfect or protect or maintain,
when filed, recorded, delivered or performed, the Secured Party's security
interests granted pursuant to this Agreement or to enable the Lenders to
exercise and enforce their rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, the Grantor shall:
(i) at the request of the Agent, mark conspicuously each document included in
the Inventory and each other contract relating to the Accounts, and all chattel
paper, instruments and other documents and each of its records pertaining to the
Collateral with a legend, in form and substance satisfactory to the Agent,
indicating that such document, contract, chattel paper, instrument or Collateral
is subject to the security interest granted hereby; (ii) at the request of the
Agent, if any Account or contract or other writing relating thereto shall be
evidenced by a promissory note or other instrument, deliver and pledge to the
Agent, for the ratable benefit of the Lenders, such note or other instrument
duly endorsed and accompanied by duly executed undated instruments of transfer
or assignment, all in form and substance reasonably satisfactory to the Agent;
(iii) execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be necessary or
desirable, or as the Agent may reasonably

                                      -7-
<PAGE>

request, in order to perfect and preserve, with the required priority, the
security interests granted, or purported to be granted hereby; (iv) upon the
Grantor's registration, or application therefor, of any copyright under the
Copyright Act, at the Agent's request execute and deliver to the Agent for
recordation and filing in the United States Copyright Office a copy of this
Agreement or another appropriate copyright mortgage document in form and
substance reasonably satisfactory to the Agent; (v) upon the Grantor's
registration, or application therefor, of any Patent or Mark, execute and
deliver to the Agent for recordation and filing in the United States Patent and
Trademark Office a copy of this Agreement or another appropriate patent or
trademark mortgage document, as applicable, in form and substance reasonably
satisfactory to the Agent; and (vi) with respect to any Material Contract in
which the Grantor now has or hereafter acquires an interest which by its terms
prohibits assignment, the Grantor will use its best efforts to procure the
consent of the counterparty to such contract (a "Consent") in form and substance
                                                 -------
reasonably satisfactory to the Agent.

     (b)  At any time and from time to time, the Agent shall be entitled to file
and/or record any or all such financing statements, instruments and documents
held by it, and any or all such further financing statements, documents and
instruments, relative to the Collateral or any part thereof in each instance,
and to take all such other actions as the Agent may reasonably deem appropriate
to perfect and to maintain perfected the security interests granted herein.

     (c)  The Grantor hereby authorizes the Agent to file one or more financing
or continuation statements, and amendments thereto, relative to all or any part
of the Collateral without the signature of the Grantor where permitted by law. A
carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.

     (d)  The Grantor shall furnish to the Agent from time to time statements
and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Agent may reasonably request.
Upon the Grantor's publication or registration, or application for registration,
of any copyright under the Copyright Act, the Grantor shall, in addition to all
other acts required to be performed in respect thereof pursuant to this
Agreement, supplement Schedule 3.5A to the Loan Agreement to reflect the
                      -------------
publication or registration of such copyright or application therefor. Upon the
Grantor's obtaining any rights and interests in any additional Marks, the
Grantor shall, in addition to all other acts required to be performed in respect
thereof pursuant to this Agreement, supplement Schedule 3.5A to the Loan
                                               -------------
Agreement to reflect such additional Marks. Upon the Grantor's obtaining any
rights and interests in any additional Patents, the Grantor shall, in addition
to all other acts required to be performed in respect thereof pursuant to this
Agreement, supplement Schedule 3.5A to the Loan Agreement to reflect such
                      -------------
additional Patents. Upon the Grantor's receipt or acquisition of any additional
shares of capital stock of any Person or any additional partnership interests in
any partnership or joint venture, the Grantor shall, in addition to all other
acts required to be performed in respect thereof pursuant to this Agreement,
supplement Schedule A attached hereto to reflect such additional Pledged
           ----------
Collateral. Upon the Grantor's receipt or acquisition of any additional Limited
Liability Company Interest, the Grantor shall, in addition to all other acts
required to be performed in respect thereof pursuant to this Agreement,
supplement Schedule A attached hereto to reflect such additional Pledged
           ----------
Collateral and, to the extent such Limited Liability Company

                                      -8-
<PAGE>

Interest is certificated, deliver to the Agent the certificates therefor,
accompanied by such instruments of transfer as are acceptable to the Agent.

     (e)  With respect to any Collateral consisting of certificates of title or
the like as to which Secured Party's security interest need be perfected by, or
the priority thereof need be assured by, notation on the certificate of title
pertaining to such Collateral, the Grantor will upon demand of the Agent note
the lien on such certificate of title in favor of the Lenders.

     (f)  With respect to any Collateral consisting of securities, instruments,
partnership or joint venture interests, interests in limited liability
companies, or the like, the Grantor hereby consents and agrees that, upon the
occurrence and during the continuance of an Event of Default, subject to any
necessary prior approval of the FCC, the issuers of, or obligors on, any such
Collateral, or any registrar or transfer agent or trustee for any such
Collateral, shall be entitled to accept the provisions of this Agreement as
conclusive evidence of the right of the Agent to effect any transfer or exercise
any right hereunder or with respect to any such Collateral subject to the terms
hereof, notwithstanding any other notice or direction to the contrary heretofore
or hereafter given by the Grantor or any other Person to such issuers or such
obligors or to any such registrar or transfer agent or trustee.

     (g)  With respect to any Media Licenses:

          (i)    The parties acknowledge their intention that, upon the
     occurrence of an Event of Default, the Agent and the Lenders shall receive,
     to the fullest extent permitted by Requirements of Law (including, without
     limitation, the Communications Act), all rights necessary or desirable to
     obtain, use or sell such Collateral or to have such Collateral or rights in
     connection therewith sold for the benefit of the Lenders and, in connection
     therewith, to assign the Media Licenses or to have the Media Licenses
     assigned to such purchaser, and to exercise all remedies available to the
     Lenders under this Agreement, the other Loan Documents, the Uniform
     Commercial Code and other applicable law.

          (ii)   The parties agree that, in the event of changes in any
     Requirement of Law occurring after the date hereof that affect in any
     manner the Lenders' rights of access to, or use or sale of, the Media
     Licenses, or the procedures necessary to enable the Lenders to obtain such
     rights of access, use or sale (including changes allowing greater access),
     the Lenders and the Grantor, upon request of any of the Lenders or the
     Agent, shall amend this Agreement and the other Loan Documents in such
     manner as the Lenders or the Agent shall reasonably request, in order to
     provide the Lenders with such rights to the greatest extent possible
     consistent with then-applicable Requirements of Law.

     6.   Voting Rights; Dividends; etc  Subject to any necessary prior
          -----------------------------
approval from the FCC, so long as no Event of Default shall have occurred and be
continuing:

     (a)  Voting Rights.  The Grantor shall be entitled to exercise any and all
          -------------
voting and other consensual rights pertaining to the Pledged Securities, the
Pledged Partnership Interests and the Pledged Limited Liability Company
Interests (including, but not limited to, all voting, consent, administration,
management and other rights and remedies under any partnership

                                      -9-
<PAGE>

agreement or any limited liability company agreement or otherwise with respect
to the Pledged Securities, the Pledged Partnership Interests or the Pledged
Limited Liability Company Interests), or any part thereof, for any purpose not
inconsistent with the terms of this Agreement, the Loan Agreement or the other
Loan Documents; provided, however, that the Grantor shall not exercise any such
                --------  -------
right if it would result in a Default.

     (b)  Dividend and Distribution Rights.  Subject to the terms of the Loan
          --------------------------------
Agreement, the Grantor shall be entitled to receive and to retain and use any
and all dividends or distributions paid in respect of the Pledged Securities,
the Pledged Partnership Interests or the Pledged Limited Liability Company
Interests; provided, however, that any and all
           --------  -------

          (i)    non-cash dividends or distributions in the form of capital
     stock, certificated limited liability company interests, instruments or
     other property received, receivable or otherwise distributed in respect of,
     or in exchange for, any Pledged Securities, Pledged Partnership Interests
     or Pledged Limited Liability Company Interests,

          (ii)   dividends and other distributions paid or payable in cash in
     respect of any Pledged Securities, Pledged Partnership Interests or Pledged
     Limited Liability Company Interests in connection with a partial or total
     liquidation or dissolution or in connection with a reduction of capital,
     capital surplus or paid-in-surplus, and

          (iii)  cash paid, payable or otherwise distributed in redemption of,
     or in exchange for, any Pledged Securities, Pledged Partnership Interests
     or Pledged Limited Liability Company Interests,

shall, except as otherwise provided for in the Loan Agreement or the other Loan
Documents, forthwith be delivered to the Agent, in the case of (i) above, to be
held as Collateral and shall, if received by the Grantor, be received in trust
for the benefit of Secured Party, be segregated from the other property of the
Grantor and forthwith be delivered to the Agent as Collateral in the same form
as so received (with any necessary endorsements), and in the case of (ii) and
(iii) above, to be applied to the Obligations or otherwise to be held as
Collateral.

     7.   Rights as to Pledged Collateral During Event of Default  When an
          -------------------------------------------------------
Event  of Default has occurred and is continuing, subject to any necessary prior
approval of the FCC:

     (a)  Voting, Dividend and Distribution Rights.  At the option of the
          ----------------------------------------
Agent, all rights of the Grantor to exercise the voting and other consensual
rights that it would otherwise be entitled to exercise pursuant to Section 6(a)
above, and to receive the dividends and distributions that it would otherwise be
authorized to receive and retain pursuant to Section 6(b) above, shall cease,
and all such rights shall thereupon become vested in the Agent who shall
thereupon have the sole right to exercise such voting and other consensual
rights and to receive and to hold as Pledged Collateral such dividends and
distributions during the continuance of such Event of Default.

     (b)  Dividends and Distributions Held in Trust.  All dividends and other
          -----------------------------------------
distributions that are received by the Grantor contrary to the provisions of
Section 7(a) of this Agreement shall be received in trust for the benefit of the
Secured Party, shall be segregated from other funds of

                                      -10-
<PAGE>

the Grantor and forthwith shall be paid over to the Agent as Collateral in the
same form as so received (with any necessary endorsements).

     8.   Irrevocable Proxy  The Grantor hereby revokes all previous proxies
          -----------------
with regard to the Pledged Securities and the Pledged Limited Liability Company
Interests and, subject to any necessary prior approval of the FCC, appoints the
Agent as its proxyholder and attorney-in-fact to (i) attend and vote at any and
all meetings of the shareholders of the corporation(s) that issued the Pledged
Securities (whether or not transferred into the name of the Agent), and any
adjournments thereof, held on or after the date of the giving of this proxy and
prior to the termination of this proxy and to execute any and all written
consents, waivers and ratifications of shareholders of such corporation(s)
executed on or after the date of the giving of this proxy and prior to the
termination of this proxy, with the same effect as if the Grantor had personally
attended the meetings or had personally voted its shares or had personally
signed the written consents, waivers or ratification, and (ii) to attend and
vote at any and all meetings of the members of the Pledged Entities (whether or
not such Pledged Limited Liability Company Interests are transferred into the
name of the Agent), and any adjournments thereof, held on or after the date of
the giving of this proxy and to execute any and all written consents, waivers
and ratifications of the Pledged Entities executed on or after the date of the
giving of this proxy and prior to the termination of this proxy with the same
effect as if the Grantor had personally attended the meetings or had personally
voted on its Limited Liability Company Interests or had personally signed the
consents, waivers or ratifications; provided, however, that the Agent as
                                    --------  -------
proxyholder shall have rights hereunder only upon the occurrence and during the
continuance of an Event of Default and subject to Section 16(j) hereof. The
Grantor hereby authorizes the Agent to substitute another Person (which Person
shall be a successor to the rights of the Agent hereunder, a nominee appointed
by the Agent to serve as proxyholder, or otherwise as approved by the Grantor in
writing, such approval not to be unreasonably withheld) as the proxyholder and,
upon the occurrence or during the continuance of any Event of Default, hereby
authorizes and directs the proxyholder to file this proxy and the substitution
instrument with the secretary of the appropriate corporation. This proxy is
coupled with an interest and is irrevocable until such time as all Obligations
have been indefeasibly paid in full.

     9.   Copyrights
          ----------

     (a)  Royalties.  The Grantor hereby agrees that the use by the Agent or any
          ---------
Lender of the Copyrights as authorized hereunder in connection with the Agent's
or the Lenders' exercise of their rights and remedies hereunder shall be without
any liability for royalties or other related charges from the Agent or the
Lenders to the Grantor.

     (b)  Restrictions on Future Agreements.  Subject to the terms hereof and
          ---------------------------------
of the Loan Agreement, the Grantor shall be permitted to manage, license and
administer its Copyrights, Patents and Marks in such manner as the Grantor in
its reasonable business judgment deems desirable; provided, however, that the
                                                  --------  -------
Grantor will not, without the Agent's prior written consent, (a) enter into any
copyright license agreements or (b) take any action, or permit any action to be
taken by others, including, without limitation, licensees, or fail to take any
action, which would customarily be taken by a Person in the same business and in
similar circumstances as the Grantor.

                                      -11-
<PAGE>

     (c)  Duties of Grantor.  The Grantor shall have the duty to:  (i) prosecute
          -----------------
diligently any copyright application included in the Copyrights, (ii) at the
request of the Agent, make application for registration of such uncopyrighted
but copyrightable material owned by the Grantor as the Agent reasonably deems
appropriate, (iii) place notices of copyright on all copyrightable property
produced or owned by the Grantor embodying the Copyrights and use diligent
reasonable efforts to have its licensees do the same and (iv) take all
reasonable action necessary to preserve and maintain all of the Grantor's rights
in the Copyrights that are or shall be necessary in the operation of the
Grantor's business, including, without limitation, making timely filings for
renewals and extensions of registered Copyrights and diligently monitoring
unauthorized use thereof. Any expenses incurred in connection with the foregoing
shall be borne by the Grantor. Neither the Agent nor the Lenders shall have any
duty with respect to the Copyrights other than to act lawfully and without gross
negligence or willful misconduct. Without limiting the generality of the
foregoing, neither the Agent nor the Lenders shall be under any obligation to
take any steps necessary to preserve rights in the Copyrights against any other
parties, but the Agent may do so at its option upon the occurrence and during
the continuance of an Event of Default, and all reasonable expenses incurred in
connection therewith shall be for the account of the Grantor and shall be added
to the Obligations.

     10.  Patents and Marks
          -----------------

     (a)  Royalties.  The Grantor hereby agrees that any rights granted
          ---------
hereunder to the Lenders with respect to Patents and Marks shall be applicable
to all territories in which the Grantor has the right to use such Patents and
Marks, from time to time, and without any liability for royalties or other
related charges from the Lenders to the Grantor.

     (b)  Restrictions on Future Agreements.  The Grantor will not, without the
          ---------------------------------
Agent's prior written consent, abandon any Patent or Mark in which the Grantor
now owns or hereafter acquires any rights or interests or enter into any
agreement, including, without limitation, any license agreement, which is
inconsistent with the Grantor's obligations under this Agreement, and the
Grantor further agrees that it will not take any action, or permit any action to
be taken by others subject to its control, including licensees, or fail to take
any action which would customarily be taken by a Person in the same business and
in similar circumstances as the Grantor.

     (c)  Duties of Grantor.  The Grantor shall have the duty to (i) prosecute
          -----------------
diligently any patent application or trademark application pending as of the
date hereof or thereafter until the Obligations shall have been indefeasibly
paid in full and no Commitment remains outstanding, (ii) upon the occurrence and
during the continuance of an Event of Default, make application on unpatented
but patentable inventions owned by the Grantor and on Marks, as the case may be,
as the Agent reasonably deems appropriate, (iii) file and prosecute opposition
and cancellation proceedings and (iv) take all reasonable action necessary to
preserve and maintain all rights in patent applications of the Patents and in
applications for registrations of the Marks. Any expenses incurred in connection
with such applications shall be borne by the Grantor. The Grantor shall not
abandon any right to file a Patent application or Mark application without the
consent of the Agent. The Grantor shall give proper statutory notice in
connection with its use of each such Mark to the extent necessary for the
protection of each of the Marks. The Grantor shall notify the Agent of any suits
it commences to enforce the Patents and Marks and shall

                                      -12-
<PAGE>

provide the Agent with copies of any documents reasonably requested by the Agent
relating to such suits.

     11.  Grantor's Representations and Warranties.  The Grantor represents and
          ---------------------------------------------------------------------
warrants as follows
-------------------

     (a)  (i) The locations listed on Schedule B attached hereto and made a part
                                      ----------
hereof constitute all locations at which Inventory and/or Equipment are located;
(ii) the chief executive office of the Grantor, where the Grantor keeps its
records concerning the Collateral and the chattel paper evidencing the
Collateral, is located at the address set forth for the Grantor on Schedule C
                                                                   ----------
attached hereto and made a part hereof; (iii) all records concerning any
Account, any Material Contract and all originals of all contracts and other
writings that evidence any Account are located at the addresses listed on
Schedule C attached hereto; and (iv) the Grantor has exclusive possession and
----------
control of the Equipment and the Inventory.

     (b)  The Grantor is the legal and beneficial owner of the Collateral free
and clear of all Liens except for Liens permitted by Section 6.3 of the Loan
Agreement. The Grantor has the power, authority and legal right to grant the
security interests in the Collateral purported to be granted hereby, and to
execute, deliver and perform this Agreement. The pledge of the Collateral
pursuant to this Agreement creates a valid security interest in the Collateral.
Upon the filing of appropriate financing statements in the filing offices set
forth on Schedule E attached hereto, the recordation of appropriate
         ----------
documentation with the United States Copyright Office and the United States
Patent and Trademark Office, as applicable, the giving of a Limited Liability
Company Notice to the Pledged Entities and the delivery to the Agent of the
Certificates, as the case may be, the Secured Party will have a first-priority
(except for any Liens or security interests permitted under Section 6.3 of the
Loan Agreement that have priority by operation of law) perfected security
interest in the Collateral.

     (c)  The Pledged Securities and the Pledged Limited Liability Company
Interests have been duly authorized and validly issued and are fully paid and
nonassessable.

     (d)  No consent of any Person, including any partner in a partnership with
respect to which the Grantor has pledged its interest as a Pledged Partnership
Interest or any member in a Pledged Entity, is required for the pledge by the
Grantor of the Collateral other than consents required under the agreements
described on Schedule 3.2 to the Loan Agreement.
             ------------

     (e)  The Pledged Securities described on Schedule A attached hereto
                                              ----------
constitute (i) all of the shares of capital stock of any Person owned by the
Grantor and (ii) that percentage of the issued and outstanding shares of the
respective issuers thereof indicated on Schedule A attached hereto, and there
                                        -----------
is no other class of shares issued and outstanding of the respective issuers
thereof except as set forth on Schedule A attached hereto. The Pledged
                               ----------
Partnership Interests described on Schedule A attached hereto constitute all of
                                   ----------
the partnerships or joint ventures in which the Grantor has an interest, and the
Grantor's respective percentage interest in each such partnership or joint
venture is as set forth on such Schedule A attached hereto.  The Pledged
                                ----------
Limited Liability Company Interests described on Schedule A attached hereto
                                                 ----------
constitute all of the Limited Liability Company Interests of the Grantor and the
Grantor's respective percentage interest in each such Pledged Entity is as set
forth on Schedule A attached hereto.  The Pledged
         ----------

                                      -13-
<PAGE>

Limited Liability Company Interests described on Schedule A constitute (i) 100%
                                                 ----------
of the Limited Liability Company Interests owned by the Grantor, and (ii) 100%
of the Limited Liability Company interests of each Subsidiary directly owned by
the Grantor.

     (f)  Subject to Section 16(j) hereof, no authorization, approval or other
action by, and no notice to or filing with, any Governmental Authority (other
than such authorizations, approvals and other actions as have already been taken
and are in full force and effect) is required (A) for the pledge of the
Collateral or the grant of the security interest in the Collateral by the
Grantor hereby or for the execution, delivery or performance of this Agreement
by the Grantor, or (B) for the exercise by the Agent of the voting rights in the
Pledged Securities, the Pledged Partnership Interests and the Pledged Limited
Liability Company Interests or of any other rights or remedies in respect of the
Collateral hereunder except as may be required in connection with any
disposition of Collateral consisting of securities by laws affecting the
offering and sale of securities generally.

     (g)  The Grantor does not now own, is not a licensee of, and has not
applied for any Patents. The Grantor does not now own, is not a licensee of, and
has not applied for any Marks, other than those set forth on Schedule 3.5A to
the Loan Agreement, none of which have been registered with, or for which an
application for registration has been made with, any Governmental Authority.

     (h)  The Grantor does not now own, is not a licensee of, and has not
applied for any Copyrights.

     (i)  The deposit accounts listed on Schedule D attached hereto and made a
                                         ----------
part hereof constitute all deposit accounts maintained by the Grantor [(other
than any payroll or other operating account having a balance not greater than
$250,000 at any time (and provided that such excluded accounts shall not at any
time have an aggregate balance in excess of $2,000,000).]

     (j)  None of the Material Contracts contains provisions prohibiting the
assignment thereof by the Grantor to the Lenders, which has not been waived by
the counterparty thereto pursuant to a Consent.

     12.  Grantor's Covenants  In addition to the other covenants and
          -------------------
agreements set forth herein and in the other Loan Documents, the Grantor
covenants and agrees as follows:

     (a)  The Grantor will pay, prior to delinquency, all taxes, charges, Liens
and assessments against the Collateral owned by it, except those with respect to
which the amount or validity is being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have been
provided on the books of the Grantor.

     (b)  The Collateral will not be used in violation of any material law,
regulation or ordinance or any Requirement of Law applicable to the Grantor
owning it, nor used in any way that will void or impair any insurance required
to be carried in connection therewith.

     (c)  The Grantor will keep the Collateral in reasonably good repair,
working order and operating condition (normal wear and tear excluded), and from
time to time make all necessary and proper repairs, renewals, replacements,
additions and improvements thereto and, as

                                      -14-
<PAGE>

appropriate and applicable, will otherwise deal with the Collateral in all such
ways as are considered customary practice by owners of like property.

     (d)  The Grantor will take all reasonable steps to preserve and protect the
Collateral.

     (e)  The Grantor will maintain all insurance coverage required pursuant to
the Loan Documents.

     (f)  The Grantor will promptly notify the Agent in writing in the event of
any material damage to the Collateral from any source whatsoever.

     (g)  The Grantor will not (i) establish any location of Inventory or
Equipment not listed on Schedule B hereto, (ii) move its principal place of
                        ----------
business, chief executive office or any other office listed on Schedule C hereto
                                                               ----------
or (iii) adopt, use or conduct business under any trade name or other corporate
or fictitious name not disclosed on Schedule 3.5C to the Loan Agreement, except
                                    -------------
upon not less than 30 days' prior notice to the Agent and the Grantor's prior
compliance with all applicable requirements of Section 5 hereof necessary to
perfect the Secured Party's security interest hereunder.

     (h)  The Grantor shall not withdraw as a member of any Pledged Entity, or
file or pursue or take any action that may, directly or indirectly, cause a
dissolution or liquidation of or with respect to any Pledged Entity or seek a
partition of any property of any Pledged Entity.

     (i)  Subject to the provisions of Section 16(j) hereof, the Grantor agrees
to take any action which the Agent may reasonably request in order to obtain
from the FCC such approval as may be necessary to enable the Lenders to exercise
and enjoy the full rights and benefits granted to them by this Agreement,
including the use of the Grantor's best efforts to assist in obtaining the
approval of the FCC for any action or transaction contemplated by this Agreement
for which such approval is required by law.

     13.  Agent's Rights Regarding Collateral  At any time and from time to
          -----------------------------------
time, the Agent (for the benefit of the Secured Party) may, to the extent
necessary or desirable to protect the security hereunder, but the Agent shall
not be obligated to: (a) (whether or not a Default has occurred) itself or
through its representatives, at its own expense, upon reasonable notice and at
such reasonable times during usual business hours, visit and inspect the
Grantor's properties and examine and make abstracts from any of its books and
records at any reasonable time and as often as may reasonably be desired and
discuss the business, operations, properties and financial and other condition
of the Grantor and its Subsidiaries with officers and employees of the Grantor
and its Subsidiaries and with its Accountants or (b) if a Default has occurred
and is continuing, at the expense of the Grantor, perform any obligation of the
Grantor under this Agreement. At any time and from time to time, at the expense
of the Grantor, the Agent (for the benefit of the Secured Party) may, to the
extent necessary or desirable to protect the security hereunder, but the Agent
shall not be obligated to: (i) notify obligors on the Collateral that the
Collateral has been assigned as security to the Agent for the benefit of the
Secured Party; (ii) at any time and from time to time request from obligors on
the Collateral, in the name of the Grantor or in the name of the Secured Party,
information concerning the Collateral and the amounts owing thereon; and (iii)
after an Event of Default has occurred and is continuing, direct

                                      -15-
<PAGE>

obligors under the contracts included in the Collateral to which the Grantor is
party to direct their performance to the Agent or the Lenders. The Grantor shall
keep proper books and records and accounts in which full, true and correct
entries in conformity with GAAP and all Requirements of Law shall be made of all
material dealings and transactions pertaining to the Collateral. The Agent shall
at all reasonable times on reasonable notice have full access to and the right
to audit any and all of the Grantor's books and records pertaining to the
Collateral, and to confirm and verify the value of the Collateral. Neither the
Agent nor the Lenders shall be under any duty or obligation whatsoever to take
any action to preserve any rights of or against any prior or other parties in
connection with the Collateral, to exercise any voting rights or managerial
rights with respect to any Collateral or to make or give any presentments for
payment, demands for performance, notices of non-performance, protests, notices
of protest, notices of dishonor or notices of any other nature whatsoever in
connection with the Collateral or the Obligations. Neither the Agent nor the
Lenders shall be under any duty or obligation whatsoever to take any action to
protect or preserve the Collateral or any rights of the Grantor therein, or to
make collections or enforce payment thereon, or to participate in any
foreclosure or other proceeding in connection therewith. Nothing contained
herein or in any Consent shall constitute an assumption by the Lenders of the
Grantor's obligations under the contracts assigned hereunder unless the Agent
shall have given written notice to the counterparty to such assigned contract of
the Lenders' intention to assume such contract. The Grantor shall continue to be
liable for performance of its obligations under such contracts.

     Nothing contained herein shall be construed to make the Agent or any Lender
liable as a member of any Pledged Entity or partner in any partnership with
respect to which the Grantor has pledged its interest as a Pledged Limited
Liability Company Interest or a Pledged Partnership Interest, and the Agent and
the Lenders by virtue of this Agreement or otherwise (except as referred to in
the following sentence) shall not have any of the duties, obligations or
liabilities of a member of any Pledged Entity or partner in such partnership.
The parties hereto expressly agree that, unless the Agent shall become the
absolute owner of a Pledged Limited Liability Company Interest or Pledged
Partnership Interest pursuant hereto, this Agreement shall not be construed as
creating a partnership or joint venture among the Agent, any Lender and/or the
Grantor.  Except as provided in the immediately preceding sentence, the Agent,
by accepting this Agreement, did not intend to become a member of any Pledged
Entity or partner in any partnership with respect to which the Grantor has
pledged its interest as a Pledged Limited Liability Company Interest or a
Pledged Partnership Interest, or otherwise be deemed to be a co-venturer with
respect to the Grantor or any Pledged Entity or partner in any such partnership,
either before or after an Event of Default shall have occurred.

     14.  Collections on the Collateral  Except as provided to the contrary in
          -----------------------------
the Loan Agreement, the Grantor shall have the right to use and to continue to
make collections on and receive dividends and other proceeds of all of the
Collateral in the ordinary course of business so long as no Event of Default
shall have occurred and be continuing. Upon the occurrence and during the
continuance of an Event of Default, at the option of the Agent, the Grantor's
right to make collections on and receive dividends and other proceeds of the
Collateral and to use or dispose of such collections and proceeds shall
terminate, and any and all dividends, proceeds and collections, including all
partial or total prepayments, then held or thereafter received on or on account
of the Collateral will be held or received by the Grantor in trust for the
Secured Party and immediately delivered in kind to the Agent (duly endorsed to
the Agent, if required), to be

                                      -16-
<PAGE>

applied to the Obligations or held as Collateral, as the Agent shall elect. Upon
the occurrence and during the continuance of an Event of Default, the Agent
shall have the right at all times to receive, receipt for, endorse, assign,
deposit and deliver, in the name of the Agent or the Lenders or in the name of
the Grantor, any and all checks, notes, drafts and other instruments for the
payment of money constituting proceeds of or otherwise relating to the
Collateral; and the Grantor hereby authorizes the Agent to affix, by facsimile
signature or otherwise, the general or special endorsement of the Grantor, in
such manner as the Agent shall deem advisable, to any such instrument in the
event the same has been delivered to or obtained by the Agent without
appropriate endorsement, and the Agent and any collecting bank are hereby
authorized to consider such endorsement to be a sufficient, valid and effective
endorsement by the Grantor, to the same extent as though it were manually
executed by the duly authorized representative of the Grantor, regardless of by
whom or under what circumstances or by what authority such endorsement actually
is affixed, without duty of inquiry or responsibility as to such matters, and
the Grantor hereby expressly waives demand, presentment, protest and notice of
protest or dishonor and all other notices of every kind and nature with respect
to any such instrument.

     15.  Possession of Collateral by Agent  All the Collateral now, heretofore
          ---------------------------------
or hereafter delivered to the Agent shall be held by the Agent in its
possession, custody and control. Any or all of the Collateral delivered to the
Agent constituting cash or cash equivalents shall, prior to the occurrence of
any Event of Default, be held in an interest-bearing account with one or more of
the Lenders, and shall be, upon request of the Grantor, invested in investments
permitted by Section 6.7(c) of the Loan Agreement. Nothing herein shall obligate
the Agent to obtain any particular return thereon. Upon the occurrence and
during the continuance of an Event of Default, whenever any of the Collateral is
in the Agent's possession, custody or control, the Agent may use, operate and
consume the Collateral, whether for the purpose of preserving and/or protecting
the Collateral, or for the purpose of performing any of the Grantor's
obligations with respect thereto, or otherwise, and, subject to the terms of
Section 9.7 of the Loan Agreement, any or all of the Collateral delivered to the
Agent constituting cash or cash equivalents shall be applied by the Agent to
payment of the Obligations to the extent permitted by the terms of the Loan
Agreement or otherwise held as Collateral as the Agent shall elect. The Agent
may at any time deliver or redeliver the Collateral or any part thereof to the
Grantor, and the receipt of any of the same by the Grantor shall be complete and
full acquittance for the Collateral so delivered, and the Agent thereafter shall
be discharged from any liability or responsibility arising after such delivery
to the Grantor. So long as the Agent exercises reasonable care with respect to
any Collateral in its possession, custody or control, neither the Agent nor the
Lenders shall have any liability for any loss of or damage to any Collateral,
and in no event shall the Agent or the Lenders have liability for any diminution
in value of Collateral occasioned by economic or market conditions or events,
absent the gross negligence or willful misconduct of the Agent or any of the
Lenders. The Agent shall be deemed to have exercised reasonable care within the
meaning of the preceding sentence if the Collateral in the possession, custody
or control of the Agent is accorded treatment substantially equal to that which
the Agent accords similar property for its own account, it being understood that
neither the Agent nor the Lenders shall have any responsibility for (a)
ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relating to any Collateral, whether or not
the Agent or any Lender has or is deemed to have knowledge of such matters, or
(b) taking any necessary steps to preserve rights against any Person with
respect to any Collateral.

                                      -17-
<PAGE>

     16.  Remedies
          --------

     (a)  Rights Upon Event of Default.  Upon the occurrence and during the
          ----------------------------
continuance of an Event of Default, the Grantor shall be in default hereunder
and the Agent for the benefit of the Secured Party shall have, in any
jurisdiction where enforcement is sought, in addition to all other rights and
remedies that the Agent on behalf of the Secured Party may have under this
Agreement and under applicable laws or in equity, all rights and remedies of a
secured party under the Uniform Commercial Code as enacted in any such
jurisdiction in effect at that time, and in addition the following rights and
remedies, all of which may be exercised with or without further notice to the
Grantor except such notice as may be specifically required by applicable law:
(a) to foreclose the Liens and security interests created hereunder or under any
other Loan Document by any available judicial procedure or without judicial
process; (b) to enter any premises where any Collateral may be located for the
purpose of securing, protecting, inventorying, appraising, inspecting,
repairing, preserving, storing, preparing, processing, taking possession of or
removing the same; (c) to sell, assign, lease or otherwise dispose of any
Collateral or any part thereof, either at public or private sale or at any
broker's board, in lot or in bulk, for cash, on credit or otherwise, with or
without representations or warranties and upon such terms as shall be
commercially reasonable; (d) to notify obligors on the Collateral that the
Collateral has been assigned to the Agent for the benefit of the Secured Party
and that all payments thereon, or performance with respect thereto, are to be
made directly and exclusively to the Agent for the account of the Secured Party;
(e) to collect by legal proceedings or otherwise all dividends, distributions,
interest, principal or other sums now or hereafter payable upon or on account of
the Collateral; (f) to enter into any extension, reorganization, disposition,
merger or consolidation agreement, or any other agreement relating to or
affecting the Collateral, and in connection therewith the Agent may deposit or
surrender control of the Collateral and/or accept other property in exchange for
the Collateral as the Agent reasonably deems appropriate and is commercially
reasonable; (g) to settle, compromise or release, on terms acceptable to the
Agent, in whole or in part, any amounts owing on the Collateral and/or any
disputes with respect thereto; (h) to extend the time of payment, make
allowances and adjustments and issue credits in connection with the Collateral
in the name of the Agent for the benefit of the Secured Party or in the name of
the Grantor; (i) to enforce payment and prosecute any action or proceeding with
respect to any or all of the Collateral and take or bring, in the name of the
Secured Party or in the name of the Grantor, any and all steps, actions, suits
or proceedings deemed necessary or reasonably desirable by the Agent to effect
collection of or to realize upon the Collateral, including any judicial or
nonjudicial foreclosure thereof or thereon, and the Grantor specifically
consents to any nonjudicial foreclosure of any or all of the Collateral or any
other action taken by the Lenders which may release any obligor from personal
liability on any of the Collateral, and the Grantor waives (such waiver not to
affect the Agent's agreement to give notice of sale in certain circumstances
pursuant to Section 16(d)), to the extent permitted by applicable law, any right
to receive notice of any public or private judicial or nonjudicial sale or
foreclosure of any security or any of the Collateral, and any money or other
property received by the Agent in exchange for or on account of the Collateral,
whether representing collections or proceeds of Collateral, and whether
resulting from voluntary payments or foreclosure proceedings or other legal
action taken by the Agent or the Grantor may be applied by the Agent, without
notice to the Grantor, to the Obligations in such order and manner as the Agent
in its sole discretion shall determine; (j) to insure, protect and preserve the
Collateral; (k) to exercise all rights, remedies, powers or privileges provided
under any of the Loan Documents; and (l) to remove, from any

                                      -18-
<PAGE>

premises where the same may be located, the Collateral and any and all
documents, instruments, files and records, and any receptacles and cabinets
containing the same, relating to the Collateral, and the Agent may, at the cost
and expense of the Grantor, use such of its supplies, equipment, facilities and
space at its places of business as may be necessary or appropriate to properly
administer, process, store, control, prepare for sale or disposition and/or sell
or dispose of the Collateral or to properly administer and control the handling
of collections and realizations thereon, and the Agent shall be deemed to have a
rent-free tenancy of any premises of the Grantor for such purposes and for such
periods of time as reasonably required by the Agent. The Grantor will, at the
Agent's request, assemble the Collateral and make it available to the Agent at
places which the Agent may designate, whether at the premises of the Grantor or
elsewhere, and will make available to the Agent, free of cost, all premises,
equipment and facilities of the Grantor for the purpose of the Agent's taking
possession of the Collateral or storing the same or removing or putting the
Collateral in salable form or selling or disposing of the same.

     Nothing herein contained shall be construed to give the Agent or the
Lenders or any purchaser of the Collateral the right to operate any of the
Stations without the prior consent of the FCC, to the extent required by law or
the terms of any Media License.

     (b)  Possession by Agent.  Upon the occurrence and during the continuance
          -------------------
of an Event of Default, the Agent also shall have the right, without notice or
demand (other than any notice required by Section 7 of the Loan Agreement),
either in person, by agent or by a receiver to be appointed by a court in
accordance with the provisions of applicable law (and the Grantor hereby
expressly consents, to the fullest extent permitted by applicable law, upon the
occurrence and during the continuance of an Event of Default to the appointment
of such a receiver), and, to the extent permitted by applicable law, without
regard to the adequacy of any security for the Obligations, to take possession
of the Collateral or any part thereof and to collect and receive the rents,
issues, profits, income and proceeds thereof. The taking possession of the
Collateral by the Agent shall not cure or waive any Event of Default or notice
thereof or invalidate any act done pursuant to such notice. The rights, remedies
and powers of any receiver appointed by a court shall be as ordered by said
court.

     (c)  Sale of Collateral.  Any public or private sale or other disposition
          ------------------
of the Collateral may be held at any office of the Agent, or at the Grantor's
place of business, or at any other place permitted by applicable law, and
without the necessity of the Collateral's being within the view of prospective
purchasers. The Agent may direct the order and manner of sale of the Collateral,
or portions thereof, as it in its sole and absolute discretion may determine
provided such sale is commercially reasonable, and the Grantor expressly waives,
to the extent permitted by applicable law, any right to direct the order and
manner of sale of any Collateral. The Agent or any Person acting on the Agent's
behalf may bid and purchase at any such sale or other disposition. In addition
to the other rights of the Agent and the Lenders hereunder, the Grantor hereby
grants to the Agent and the Lenders a license or other right to use, without
charge, the Grantor's labels, copyrights, patents, rights of use of any name,
trade names, trademarks and advertising matter, or any property of a similar
nature, including, without limitation, the Copyrights, the Patents and the Marks
in advertising for sale and selling any Collateral.

     (d)  Notice of Sale.  Unless the Collateral is perishable or threatens to
          --------------
decline speedily in value or is of a type customarily sold on a recognized
market, the Agent will give the Grantor

                                      -19-
<PAGE>

reasonable notice of the time and place of any public sale thereof or of the
time on or after which any private sale thereof is to be made. The requirement
of reasonable notice conclusively shall be met if such notice is mailed,
certified mail, postage prepaid, to the Grantor at its address set forth on the
signature page hereto or delivered or otherwise sent to the Grantor, at least
five (5) Business Days before the date of the sale. The Grantor expressly
waives, to the fullest extent permitted by applicable law, any right to receive
notice of any public or private sale of any Collateral or other security for the
Obligations except as expressly provided for in this paragraph. The Agent shall
not be obligated to make any sale of the Collateral if it shall determine not to
do so regardless of the fact that notice of sale of the Collateral may have been
given. The Agent may, without notice or publication, except as required by
applicable law, adjourn the sale from time to time by announcement at the time
and place fixed for sale, and such sale may, without further notice (except as
required by applicable law), be made at the time and place to which the same was
so adjourned.

     (e)  Private Sales.  With respect to any Collateral consisting of
          -------------
securities, partnership interests, membership interests, joint venture interests
or the like, and whether or not any of such Collateral has been effectively
registered under the Securities Act of 1933, as amended, or other applicable
laws, the Agent may, in its sole and absolute discretion, sell all or any part
of such Collateral at private sale in such manner and under such circumstances
as the Agent may deem necessary or advisable in order that the sale may be
lawfully conducted in a commercially reasonable manner. Without limiting the
foregoing, the Agent may (i) approach and negotiate with a limited number of
potential purchasers, and (ii) restrict the prospective bidders or purchasers to
persons who will represent and agree that they are purchasing such Collateral
for their own account for investment and not with a view to the distribution or
resale thereof. In the event that any such Collateral is sold at private sale,
the Grantor agrees to the extent permitted by applicable law that if such
Collateral is sold for a price which is commercially reasonable, then (A) the
Grantor shall not be entitled to a credit against the Obligations in an amount
in excess of the purchase price, and (B) the Lenders shall not incur any
liability or responsibility to the Grantor in connection therewith,
notwithstanding the possibility that a substantially higher price might have
been realized at a public sale. The Grantor recognizes that a ready market may
not exist for such Collateral if it is not regularly traded on a recognized
securities exchange, and that a sale by the Agent of any such Collateral for an
amount less than a pro rata share of the fair market value of the issuer's
assets minus liabilities may be commercially reasonable in view of the
difficulties that may be encountered in attempting to sell a large amount of
such Collateral or Collateral that is privately traded.

     (f)  Title of Purchasers.  Upon consummation of any sale of Collateral
          -------------------
hereunder, the Agent on behalf of the Secured Party shall have the right to
assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any such sale shall hold the
Collateral so sold absolutely free from any claim or right upon the part of the
Grantor or any other Person claiming through the Grantor, and the Grantor hereby
waives (to the extent permitted by applicable laws) all rights of redemption,
stay and appraisal which it now has or may at any time in the future have under
any rule of law or statute now existing or hereafter enacted. If the sale of all
or any part of the Collateral is made on credit or for future delivery, the
Agent shall not be required to apply any portion of the sale price to the
Obligations until such amount actually is received by the Agent, and any
Collateral so sold may be retained by the Agent until the sale price is paid in
full by the purchaser or purchasers thereof. The Secured

                                      -20-
<PAGE>

Party shall not incur any liability in case any such purchaser or purchasers
shall fail to pay for the Collateral so sold, and, in case of any such failure,
the Collateral may be sold again.

     (g)  Disposition of Proceeds of Sale.  The proceeds resulting from the
          -------------------------------
collection, liquidation, sale or other disposition of the Collateral shall
be applied, first, to the reasonable costs and expenses (including reasonable
            -----
attorneys' fees) of retaking, holding, storing, processing and preparing for
sale, selling, collecting and liquidating the Collateral, and the like; second,
                                                                        ------
to the satisfaction of all Obligations; and third, any surplus remaining after
                                            -----
the satisfaction of all Obligations, provided no Commitment exists, to be paid
over to the Grantor or to whomsoever may be lawfully entitled to receive such
surplus.

     (h)  Certain Waivers.  To the extent permitted by applicable law, the
          ---------------
Grantor waives all claims, damages and demands against the Agent and the Lenders
arising out of the repossession, retention or sale of the Collateral, or any
part or parts thereof, except to the extent any such claims, damages and awards
arise out of the gross negligence or willful misconduct of the Agent or the
Lenders.

     (i)  Remedies Cumulative.  The rights and remedies provided under this
          -------------------
Agreement are cumulative and may be exercised singly or concurrently, and are
not exclusive of any other rights and remedies provided by law or equity.

     (j)  Compliance with Communications Act.
          ----------------------------------

          (i)    Notwithstanding any other provision of this Agreement, any
     foreclosure on, sale, transfer or other disposition of, or the exercise of
     any right to vote or consent with respect to, any of the Collateral as
     provided herein or any other action taken or proposed to be taken by the
     Agent hereunder which would affect the operational, voting or other control
     of any entity holding a Media License shall be made in accordance with the
     Communications Act and the terms of each Media License, including, to the
     extent applicable under the Communications Act in effect at the time of a
     Default, any requirement that there be a public or private sale.

          (ii)   Notwithstanding anything to the contrary contained in this
     Agreement, or in the Loan Agreement or the other Loan Documents or in any
     other related instrument, the Agent shall not, without first obtaining any
     consent or approval of the FCC, take any action pursuant to this Agreement
     which would constitute or result in any change of control of a Subsidiary
     holding a Media License if any such change in control would require, under
     then existing law, the prior approval of the FCC.

          (iii)  If an Event of Default shall have occurred and be continuing,
     the Grantor shall take any action which the Agent may reasonably request in
     the exercise of its rights and remedies under this Agreement in order to
     transfer and assign to the Agent or to one or more third parties as the
     Agent may designate, or to a combination of the foregoing, the Collateral
     for the purposes of a public or private sale. To enforce the provisions of
     this Section 16, the Agent is empowered to request, and the Grantor agrees
     to authorize, the appointment of a receiver or trustee from any court of
     competent jurisdiction. Such receiver or trustee shall be instructed to
     seek from the FCC (and any other Governmental

                                      -21-
<PAGE>

     Authority, if required) any necessary prior consent to an involuntary
     transfer of control or assignment of any Media License or of any entity
     whose stock, partnership interests or other securities are subject to this
     Agreement, for the purpose of seeking a bona fide purchaser to whom such
     Media License or control of such entity ultimately will be transferred or
     assigned in connection with a public or private sale. The Grantor hereby
     agrees to authorize (including the Grantor's execution of any necessary or
     appropriate applications or other instruments) such an involuntary transfer
     of control or assignment upon the reasonable request of the receiver or
     trustee so appointed; and, if the Grantor's approval is required by the
     court and the Grantor shall refuse to authorize such transfer or
     assignment, then, to the extent permitted by the Communications Act in
     effect at such time and provided that the Grantor has been given 5 Business
     Days' prior written notice telecopied to its telecopier number set forth on
     the signature page hereof, and the Grantor has not responded by executing
     any such applications or other instruments, the clerk of the court may
     execute in the place of the Grantor any application or other instrument
     necessary or appropriate for the obtaining of such consent. Upon the
     occurrence and during the continuance of an Event of Default, the Grantor
     shall further use its best efforts to assist in obtaining the approval of
     the FCC (and that required by any other Governmental Authority) for any
     action or transaction contemplated by this Agreement, including without
     limitation, the preparation, execution and filing with the FCC of the
     assignor's or transferor's portion of any application or applications for
     consent to the assignment of any Media License or transfer of control of
     any entity holding or controlling any Media License as may be necessary or
     appropriate under the Communications Act for approval of the transfer or
     assignment of any portion of the Collateral or any Media License. The
     Grantor further agrees that, because of the unique nature of its
     undertaking in this Section 16, the same may be specifically enforced, and
     it hereby waives, and agrees to waive, any claim or defense that the Agent
     or the Lenders would have an adequate remedy at law for the breach of this
     undertaking and any requirement for the posting of bond or other security.
     This Section 16 shall not be deemed to limit any other rights of the Agent
     and the Lenders available under applicable law and consistent with the
     Communications Act.

     (k)  Notice.  The Agent shall use reasonable efforts to give the Grantor
          ------
prior written notice of the exercise of any remedy provided for herein, provided
                                                                        --------
that the failure to give such notice after reasonable efforts shall not subject
the Agent or any Lender to liability and shall not affect the validity or
exercise of any remedy hereunder.

     17.  Agent Appointed Attorney-in-Fact  To the full extent permitted by
          --------------------------------
applicable law, including the Communications Act, and subject to Section 16(j)
hereof, the Grantor hereby irrevocably appoints the Agent as the Grantor's
attorney-in-fact, effective upon and during the continuance of an Event of
Default, with full authority in the place and stead of the Grantor, and in the
name of the Grantor, or otherwise, from time to time, in the Agent's sole and
absolute discretion to do any of the following acts or things: (a) to do all
acts and things and to execute all documents necessary or advisable to perfect
and continue perfected the security interests created by this Agreement and to
preserve, maintain and protect the Collateral; (b) to do any and every act that
the Grantor is obligated to do under this Agreement; (c) to prepare, sign, file
and record, in the Grantor's name, any financing statement covering the
Collateral; (d) to endorse and transfer the Collateral upon foreclosure by the
Agent; (e) to grant or issue an exclusive or

                                      -22-
<PAGE>

nonexclusive license under the Copyrights, the Programs, the Patents or the
Marks to anyone upon foreclosure by the Agent; (f) to assign, pledge, convey or
otherwise transfer title in or dispose of the Copyrights, the Programs, the
Patents or the Marks to anyone upon foreclosure by the Agent; and (g) to file
any claims or take any action or institute any proceedings that the Agent may
reasonably deem necessary or desirable for the protection or enforcement of any
of the rights of the Lenders with respect to any of the Copyrights, the
Programs, the Patents and the Marks; provided, however, that the Agent shall be
                                     --------  -------
under no obligation whatsoever to take any of the foregoing actions, and neither
the Agent nor the Lenders shall have any liability or responsibility for any act
or omission (other than the Agent's or the Lenders' own gross negligence or
willful misconduct) taken with respect thereto. The Grantor hereby agrees to
repay within 10 Business Days after demand all reasonable out-of-pocket costs
and expenses (including attorneys' fees) incurred or expended by the Agent in
exercising any right or taking any action under this Agreement.

     18.  Costs and Expenses  The Grantor agrees to pay to the Agent all
          ------------------
reasonable costs and out-of- pocket expenses (including, without limitation,
reasonable attorneys' fees and disbursements) incurred by the Agent in the
enforcement or attempted enforcement of this Agreement, whether or not an action
is filed in connection therewith, and in connection with any waiver or amendment
of any term or provision hereof. All reasonable advances, charges, costs and
expenses, including reasonable attorneys' fees and disbursements, incurred or
paid by the Agent in exercising any right, privilege, power or remedy conferred
by this Agreement (including, without limitation, the right to perform any
Obligation of the Grantor under the Loan Documents), or in the enforcement or
attempted enforcement thereof, shall be secured hereby and shall become a part
of the Obligations and shall be due and payable to the Agent by the Grantor on
demand therefor.

     19.  Transfers and Other Liens  The Grantor agrees that, except as
          -------------------------
specifically permitted under the Loan Agreement or any other Loan Document, it
will not (i) sell, assign, exchange, transfer or otherwise dispose of, or
contract to sell, assign, exchange, transfer or otherwise dispose of, or grant
any option with respect to, any of the Collateral, or (ii) create or permit to
exist any Lien upon or with respect to any of the Collateral, except for Liens
in favor of the Agent for the benefit of the Lenders or otherwise permitted
under the Loan Agreement or any other Loan Document.

     20.  Understandings With Respect to Waivers and Consents  The Grantor
          ---------------------------------------------------
warrants and agrees that each of the waivers and consents set forth herein are
made with full knowledge of its significance and consequences, with the
understanding that events giving rise to any defense or right waived may
diminish, destroy or otherwise adversely affect rights which the Grantor
otherwise may have against the Secured Party or others, or against any
Collateral. If any of the waivers or consents herein are determined to be
unenforceable under applicable law, such waivers and consents shall be effective
to the maximum extent permitted by law.

     21.  Indemnity  The Grantor agrees to indemnify the Agent and the Lenders
          ---------
from and against any and all claims, losses and liabilities growing out of or
resulting from this Agreement (including, without limitation, enforcement of
this Agreement), except to the extent such claims, losses or liabilities result
from the Agent's or the Lenders' gross negligence or willful misconduct.

                                      -23-
<PAGE>

     22.  Amendments, Etc  No amendment or waiver of any provision of this
          ---------------
Agreement nor consent to any departure by the Grantor herefrom (other than
supplements to the Schedules hereto in accordance with the terms of this
Agreement) shall in any event be effective unless the same shall be in writing
and made in accordance with Section 9.1 of the Loan Agreement, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

     23.  Notices  All notices and other communications provided for hereunder
          -------
shall be given in the manner set forth in Section 9.2 of the Loan Agreement, and
if to the Agent, to the address set forth for it in Section 9.2 of the Loan
Agreement and if to the Grantor, to the address set forth for it on the
signature page hereof.

     24.  Continuing Security Interest: Transfer of Notes; Termination  (a)
          ------------------------------------------------------------
This Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until indefeasible payment in full in
cash of the Obligations and the termination or expiration of the Commitments,
(ii) be binding upon the Grantor, its successors and assigns and (iii) inure,
together with the rights and remedies of the Lenders hereunder, to the benefit
of the Agent, any successor Agent and the Lenders, subject to the terms and
conditions of the Loan Agreement. Subject to the terms of the Loan Agreement,
any Lender may assign or otherwise transfer any Loans, its Commitment or any
rights in Collateral held by it to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof granted to such
Agent or Lender herein or otherwise. Nothing set forth herein or in any other
Loan Document is intended or shall be construed to give to any other party any
right, remedy or claim under, to or in respect of this Agreement or any other
Loan Document or any Collateral. The Grantor's successors and assigns shall
include, without limitation, a receiver, trustee or debtor-in-possession thereof
or therefor, provided that, except as otherwise permitted under the Loan
             -------- ----
Agreement or any other Loan Document, none of the rights or obligations of the
Grantor hereunder may be assigned or otherwise transferred without the prior
written consent of the Lenders.

     25.  Release of Grantor  (a)  This Agreement and all obligations of the
          ------------------
Grantor hereunder and all security interests granted hereby shall be released
and terminated when all Obligations have been indefeasibly paid in full in cash
and when all Commitments have expired or have otherwise been terminated. Upon
such release and termination of all Obligations and such expiration or
termination of all Commitments and the security interest hereunder, all rights
in and to the Collateral pledged or assigned by the Grantor hereunder shall
automatically revert to the Grantor, and the Agent and the Lenders shall return
any pledged Collateral in their possession to the Grantor, or to the Person or
Persons legally entitled thereto, and shall endorse, execute, deliver, record
and file all instruments and documents, and do all other acts and things,
reasonably required for the return of the Collateral to the Grantor, or to the
Person or Persons legally entitled thereto, and to evidence or document the
release of the interests of the Secured Party arising under this Agreement, all
as reasonably requested by, and at the sole expense of, the Grantor.

     26.  GOVERNING LAW  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
          -------------
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA (WITHOUT
REFERENCE TO ITS CHOICE OF LAW

                                      -24-
<PAGE>

RULES), EXCEPT AS OTHERWISE REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT
TO THE EXTENT THAT REMEDIES PROVIDED BY THE LAWS OF A JURISDICTION OTHER THAN
THE STATE OF CALIFORNIA ARE GOVERNED BY THE LAWS OF SUCH JURISDICTION.

     27.  Covenant Not to Issue Uncertificated Securities  The Grantor
          -----------------------------------------------
represents and warrants to the Lenders that all of the Pledged Securities are in
certificated form (as contemplated by Article 8 of the Uniform Commercial Code),
and covenants to the Lenders that it will not permit any of its Subsidiaries
which are issuers of Pledged Securities to issue any securities in
uncertificated form or seek to convert all or any part of any Pledged Securities
into uncertificated form (as contemplated by Article 8 of the Uniform Commercial
Code).

     28.  Covenant Not to Dilute Interests of Secured Party in Securities  The
          ---------------------------------------------------------------
Grantor represents, warrants and covenants to the Secured Party that it will (i)
not at any time cause or permit any Subsidiary that is an issuer of Pledged
Securities to issue any additional capital stock or any warrant options or other
rights to acquire any additional capital stock, other than to the Grantor or as
otherwise permitted under the Loan Agreement and (ii) pledge to the Agent in
accordance with the terms hereof, immediately upon its acquisition (directly or
indirectly) thereof, any and all additional shares of stock or other securities
of each issuer of the Pledged Securities.

     29.  Form of Pledged Limited Liability Interests/Covenant Not to Dilute
          ------------------------------------------------------------------
The Grantor represents, warrants and covenants to the Secured Party that all of
the Pledged Limited Liability Company Interests are in the form (certificated or
uncertificated) indicated on Schedule A attached hereto (as contemplated by
                             ----------
Article 8 of the Uniform Commercial Code), and covenants to the Lenders that it
will (i) not at any time cause or permit any Pledged Entities to issue any
additional membership interests or any other rights or options to acquire any
additional limited liability company interests, other than to the Grantor or as
otherwise permitted under the Loan Agreement, and (ii) pledge to the Agent in
accordance with the terms hereof, immediately upon its acquisition (directly or
indirectly) thereof, any and all additional Limited Liability Company Interests
of each Pledged Entity.

     30.  Alternative Dispute Resolution  Section 9.12 of the Loan Agreement is
          ------------------------------
incorporated herein by this reference; provided, however, that all references
                                       --------  -------
therein to "Obligor" shall mean and be references to "Grantor," and all
references therein to "Section 9.12" shall mean and be references to "Section
30."

     31.  Copies of Certificates, Etc  Whenever the Grantor is required to
          ---------------------------
deliver notices, certificates, opinions, statements or other information
hereunder to the Agent for delivery to any Lender, it shall do so in such number
of copies as the Agent shall reasonably specify.

                                      -25-
<PAGE>

     IN WITNESS WHEREOF, the Grantor has executed this Agreement by its duly
authorized representative as of the date first written above.

                              GRANTOR
                              -------

                              LATIN COMMUNICATIONS GROUP INC.

                              By: /s/ Walter F. Ulloa
                              Name: Walter F. Ulloa
                              Title: Chairman/CEO

                              Address for Notices:

                              2425 Olympic Boulevard, Suite 6000 West
                              Santa Monica, California  90404
                              Attention  Walter F. Ulloa
                                         Jeanette Tully
                              Telecopy:  (310) 447-3899

                                      S-1
<PAGE>

STATE OF CALIFORNIA,     )
                         )  ss.
County of Los Angeles    )

          On April __, 2000, before me, __________________________, a Notary
Public in and for the State of California, personally appeared_________________,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument, and
acknowledged to me that he or she executed the within instrument in his or her
authorized capacity and that, by his or her signature on the within instrument,
the person or entity upon behalf of which he or she acted executed the within
instrument.

          WITNESS my hand and official seal.
          -------

Signature _________________________    (Seal)
<PAGE>

Schedule A    Pledged Collateral

Schedule B    Locations of Equipment and Inventory

Schedule C    Locations of Books and Records

Schedule D    Deposit Accounts

Schedule E    UCC Filing Offices

Schedule F    Form of Limited Liability Company Notice

The registrant hereby agrees to furnish a copy of any omitted schedule or
exhibit upon request.

                                      F-1

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