Document:

<PAGE>   1

                                                                    Exhibit 10.6

                      AMENDED AND RESTATED CREDIT AGREEMENT

                                      among

                 SPECTRASITE COMMUNICATIONS, INC., as Borrower;

                   SPECTRASITE HOLDINGS, INC., as a Guarantor;

                          CIBC WORLD MARKETS CORP. and
      CREDIT SUISSE FIRST BOSTON, as Joint Lead Arrangers and Bookrunners;

              CIBC WORLD MARKETS CORP., CREDIT SUISSE FIRST BOSTON,
         BANK OF MONTREAL, CHICAGO BRANCH and TD SECURITIES (USA) INC.,
                                  as Arrangers;

                CREDIT SUISSE FIRST BOSTON, as Syndication Agent;

         BANK OF MONTREAL, CHICAGO BRANCH and TD SECURITIES (USA) INC.,
                           as Co-Documentation Agents;

                       CANADIAN IMPERIAL BANK OF COMMERCE,
                  as Administrative Agent and Collateral Agent;

                                       and

                      THE OTHER CREDIT PARTIES PARTY HERETO

                          Dated as of February 22, 2001

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                   <C>

ARTICLE 1 -           Definitions.......................................................................2

ARTICLE 2 -           Loans............................................................................38

         Section 2.1         The Loans.................................................................38

         Section 2.2         Manner of Borrowing and Disbursement......................................39

         Section 2.3         Interest..................................................................42

         Section 2.4         Fees......................................................................44

         Section 2.5         Optional Prepayment/Reduction of Commitment...............................45

         Section 2.6         Repayment.................................................................47

         Section 2.7         Mandatory Repayments......................................................49

         Section 2.8         Notes; Loan Accounts......................................................52

         Section 2.9         Manner of Payment.........................................................53

         Section 2.10        Reimbursement.............................................................54

         Section 2.11        Pro Rata Treatment........................................................54

         Section 2.12        Capital Adequacy..........................................................55

         Section 2.13        Taxes.....................................................................56

         Section 2.14        Letters of Credit.........................................................58

         Section 2.15        Swing Loans...............................................................63

         Section 2.16        Incremental Facility Loans................................................65

ARTICLE 3 -           Guarantee........................................................................67

         Section 3.1         Guarantee.................................................................67

         Section 3.2         Waivers and Releases......................................................67

         Section 3.3         Miscellaneous.............................................................68

ARTICLE 4 -           Conditions Precedent.............................................................69

         Section 4.1         Conditions Precedent to Initial Advance of the Loans and to the Issuance of
                  the Initial Letter of Credit.........................................................69

         Section 4.2         Conditions Precedent to Each Advance......................................72

         Section 4.3         Conditions Precedent to Issuance of Each Letter of Credit.................72

         Section 4.4         Conditions Subsequent to Agreement Date...................................72

ARTICLE 5 -           Representations and Warranties...................................................73

         Section 5.1         Representations and Warranties............................................73

         Section 5.2         Survival of Representations and Warranties, etc...........................82
</TABLE>

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<TABLE>
<S>                   <C>
ARTICLE 6 -           General Covenants................................................................82

         Section 6.2         Business; Compliance with Applicable Law..................................83

         Section 6.3         Maintenance of Properties and Assets......................................83

         Section 6.4         Accounting Methods and Financial Records..................................83

         Section 6.5         Insurance.................................................................83

         Section 6.6         Payment of Taxes and Claims...............................................84

         Section 6.7         Visits and Inspections....................................................84

         Section 6.8         Use of Proceeds...........................................................84

         Section 6.9         Real Property.............................................................85

         Section 6.10        Indemnity.................................................................85

         Section 6.11        Interest Rate Hedging.....................................................86

         Section 6.12        Environmental Matters.....................................................87

         Section 6.13        ERISA.....................................................................87

         Section 6.14        Further Assurances........................................................87

         Section 6.15        Covenants Regarding Additional Collateral.................................87

         Section 6.16        Tower Subsidiaries........................................................92

         Section 6.17        Covenants Regarding the Designation of Subsidiaries and Investments.......92

ARTICLE 7 -           Information Covenants............................................................94

         Section 7.1         Quarterly Financial Statements and Information............................94

         Section 7.2         Annual Financial Statements and Information...............................95

         Section 7.3         Performance Certificates..................................................95

         Section 7.4         Copies of Other Reports...................................................96

         Section 7.5         Notice of Litigation and Other Matters....................................97

ARTICLE 8 -           Negative Covenants...............................................................98

         Section 8.1         Indebtedness..............................................................98

         Section 8.2         Investments..............................................................100

         Section 8.3         Limitation on Liens......................................................101

         Section 8.4         Amendment and Waiver.....................................................101

         Section 8.5         Liquidation; Merger; Acquisition or Disposition of Assets................101
</TABLE>

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<PAGE>   4

<TABLE>
<S>                   <C>
         Section 8.6         Limitation on Guaranties.................................................105

         Section 8.7         Restricted Payments and Purchases........................................106

         Section 8.8         Affiliate Transactions...................................................106

         Section 8.9         Corporate Name; Corporate Structure; Business............................107

         Section 8.10        Negative Pledge..........................................................107

ARTICLE 9 -           Financial Covenants.............................................................107

         Section 9.1         Borrower Leverage Ratio..................................................107

         Section 9.2         Borrower Interest Coverage Ratio.........................................108

         Section 9.3         Total Interest Coverage Ratio............................................108

         Section 9.4         Fixed Charge Coverage Ratio..............................................108

ARTICLE 10 -          Default.........................................................................108

         Section 10.1        Events of Default........................................................108

         Section 10.2        Remedies.................................................................112

         Section 10.3        Payments Subsequent to Acceleration or Maturity..........................113

         Section 10.4        Remedies with Respect to FCC Authorizations..............................113

ARTICLE 11 -          The Agents......................................................................114

         Section 11.1        Appointment and Authorization............................................114

         Section 11.2        Interest Holders.........................................................114

         Section 11.3        Consultation with Counsel................................................114

         Section 11.4        Documents................................................................114

         Section 11.5        Agents' Affiliates.......................................................114

         Section 11.6        Responsibility of the Agents.............................................115

         Section 11.7        Security Documents.......................................................115

         Section 11.8        Action by the Agents.....................................................115

         Section 11.9        Notice of Default or Event of Default....................................116

         Section 11.10       Responsibility Disclaimed................................................116

         Section 11.11       Indemnification..........................................................116

         Section 11.12       Credit Decision..........................................................117

         Section 11.13       Successor Agents.........................................................117

         Section 11.14       Agents...................................................................117
</TABLE>

                                     -iii-
<PAGE>   5

<TABLE>
<S>                   <C>
ARTICLE 12 -          Change in Circumstances Affecting Eurodollar Advances...........................118

         Section 12.1        Eurodollar Basis Determination Inadequate or Unfair......................118

         Section 12.2        Illegality...............................................................118

         Section 12.3        Increased Costs..........................................................118

         Section 12.4        Effect On Other Advances.................................................119

ARTICLE 13 -          Miscellaneous...................................................................120

         Section 13.1        Notices..................................................................120

         Section 13.2        Expenses.................................................................121

         Section 13.3        Waivers..................................................................122

         Section 13.4        Set-Off..................................................................122

         Section 13.5        Successors and Assigns; Participations and Assignments...................123

         Section 13.6        Accounting Principles....................................................127

         Section 13.7        Counterparts.............................................................127

         Section 13.8        Governing Law............................................................127

         Section 13.9        Severability.............................................................127

         Section 13.10       Interest.................................................................127

         Section 13.11       Headings.................................................................128

         Section 13.12       Amendment and Waiver.....................................................128

         Section 13.13       Entire Agreement.........................................................129

         Section 13.14       Other Relationships......................................................129

         Section 13.15       Loan Documents...........................................................129

         Section 13.16       Reliance on and Survival of Various Provisions...........................129

         Section 13.17       Confidentiality..........................................................129

         Section 13.18       Delivery of Lender Addenda...............................................130

ARTICLE 14 -          Waiver of Jury Trial; Consent to Jurisdiction...................................130

         Section 14.1        Waiver of Jury Trial.....................................................130

         Section 14.2        Consent to Jurisdiction..................................................130
</TABLE>

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<PAGE>   7

                      AMENDED AND RESTATED CREDIT AGREEMENT
                                      among
                 SPECTRASITE COMMUNICATIONS, INC., as Borrower;
                   SPECTRASITE HOLDINGS, INC., as a Guarantor;
                          CIBC WORLD MARKETS CORP. and
      CREDIT SUISSE FIRST BOSTON, as Joint Lead Arrangers and Bookrunners;
              CIBC WORLD MARKETS CORP., CREDIT SUISSE FIRST BOSTON,
         BANK OF MONTREAL, CHICAGO BRANCH and TD SECURITIES (USA) INC.,
                                  as Arrangers;
                   CREDIT SUISSE FIRST BOSTON, as Syndication
                 Agent; BANK OF MONTREAL, CHICAGO BRANCH and TD
                             SECURITIES (USA) INC.,
                           as Co-Documentation Agents;
                       CANADIAN IMPERIAL BANK OF COMMERCE,
                  as Administrative Agent and Collateral Agent;
                                       and
                      THE OTHER CREDIT PARTIES PARTY HERETO

                              W I T N E S S E T H:

                  WHEREAS,   SpectraSite   Communications,   Inc.,   a  Delaware
corporation (the "Borrower"), SpectraSite Holdings, Inc., a Delaware corporation
("Holdco"),  CIBC World Markets Corp. (formerly known as CIBC Oppenheimer Corp.)
and Credit Suisse First Boston,  as  arrangers,  Credit Suisse First Boston,  as
syndication  agent, Bank of Montreal,  Chicago Branch,  The Bank of Nova Scotia,
Fleet National Bank (formerly known as BankBoston,  N.A.), Dresdner Bank AG, New
York and Grand Cayman Branches, Toronto Dominion (Texas), Inc. and Union Bank of
California,  N.A.,  as managing  agents,  Credit  Lyonnais New York  Branch,  as
co-agent,  Canadian Imperial Bank of Commerce, as administrative agent, Canadian
Imperial Bank of Commerce,  as collateral agent and the other Credit Parties (as
defined  therein)  party  thereto are parties to that certain  Credit  Agreement
dated as of April  20,  1999,  as  amended  by that  First  Amendment  to Credit
Agreement dated as of August 23, 1999, as further amended by that certain Second
Amendment to Credit  Agreement dated as of December 22, 1999, as further amended
by that certain  Third  Amendment to Credit  Agreement  dated as of February 14,
2000, as further  amended by that certain Fourth  Amendment to Credit  Agreement
dated as of March 9, 2000, as further amended by that certain Fifth Amendment to
Credit  Agreement dated as of April 20, 2000, as further amended by that certain
Sixth  Amendment  to Credit  Agreement  dated as of September  27, 2000,  and as
further amended by that certain Seventh  Amendment to Credit  Agreement dated as
of December 12, 2000 (as amended, the "Prior Credit Agreement"); and

                   WHEREAS,  the Borrower  desires  that the Credit  Parties (as
defined in the Prior Credit  Agreement) modify the existing credit facilities to
provide,  among other  things,  for an increase in the  principal  amount of the
Revolving Commitment to $350,000,000, an increase in the principal amount of the
Tranche A Commitment to $500,000,000  and an increase in the principal amount of
the Tranche B Commitment to $450,000,000 and for an incremental  credit facility
of up to  $250,000,000,  and the Credit  Parties (as defined in the Prior Credit
Agreement) are willing to do so in accordance  with and subject to the terms and
conditions set forth herein; and

                  WHEREAS,  the  Borrower   acknowledges  and  agrees  that  the
security interest granted to the Collateral Agent, in its capacity as collateral
agent for the Credit Parties (as defined in the Prior Credit Agreement),

                                        1
<PAGE>   8

pursuant to the Prior Credit  Agreement and the other Loan Documents (as defined
in the Prior Credit  Agreement),  shall remain outstanding and in full force and
effect in  accordance  with the Prior  Credit  Agreement  and shall  continue to
secure the Obligations (as defined herein); and

                  WHEREAS,  each of the Borrower,  Holdco and the Credit Parties
acknowledges and agrees that (a) the Obligations (as defined herein)  represent,
among  other   things,   the   amendment,   restatement,   renewal,   extension,
consolidation  and  modification  of the  Obligations  (as  defined in the Prior
Credit  Agreement)  arising in  connection  with the Prior Credit  Agreement and
other Loan  Documents  (as defined in the Prior  Credit  Agreement)  executed in
connection  therewith;  (b) the Borrower,  Holdco and the Credit  Parties intend
that the Prior Credit  Agreement and the other Loan Documents (as defined in the
Prior Credit  Agreement)  executed in connection  therewith  and the  collateral
pledged thereunder shall secure, without interruption or impairment of any kind,
all existing  Indebtedness (as defined in the Prior Credit  Agreement) under the
Prior Credit  Agreement  and the other Loan  Documents  (as defined in the Prior
Credit  Agreement)  executed  in  connection  therewith  as they may be amended,
restated, renewed, extended,  consolidated and modified hereunder, together with
all other obligations  hereunder;  (c) all Liens (as defined in the Prior Credit
Agreement)  evidenced by the Prior Credit Agreement and the other Loan Documents
(as defined in the Prior Credit Agreement) executed in connection  therewith are
hereby ratified, confirmed and continued; and (d) the Loan Documents (as defined
herein) are intended to restate,  renew, extend,  consolidate,  amend and modify
the Prior Credit Agreement and the other Loan Documents (as defined in the Prior
Credit Agreement) executed in connection therewith; and

                  WHEREAS,  each of the Borrower,  Holdco and the Credit Parties
intend that (a) the provisions of the Prior Credit  Agreement and the other Loan
Documents  (as defined in the Prior  Credit  Agreement)  executed in  connection
therewith, to the extent restated, renewed, extended, consolidated,  amended and
modified hereby,  be hereby superseded and replaced by the provisions hereof and
of the other Loan  Documents  (as  defined  herein);  (b) the Notes (as  defined
herein)  restate,  renew,  extend,  consolidate,  amend,  modify,  replace,  are
substituted  for and  supersede  in its  entirety,  but do not  extinguish,  the
Indebtedness (as defined in the Prior Credit Agreement)  arising under the Notes
(as defined in the Prior Credit  Agreement)  issued pursuant to the Prior Credit
Agreement;  and (c) by entering into and performing their respective obligations
hereunder, this transaction shall not constitute a novation.

                  NOW,  THEREFORE,  for and in consideration of the premises and
the mutual covenants herein set forth, and in order to induce the Credit Parties
to increase the principal amount of existing credit  facilities,  as well as for
other good and  valuable  consideration,  the receipt and adequacy of all of the
foregoing as legally sufficient  consideration  being hereby  acknowledged,  the
Borrower,  Holdco and the  Credit  Parties  each do hereby  agree that the Prior
Credit Agreement is amended and restated to read as follows:

                            ARTICLE 1 - Definitions.

                  For the purposes of this Agreement:

                  "Acquisition"  shall mean,  with  respect to any  Person,  any
transaction  or series  of  related  transactions  for the  direct  or  indirect
(whether by purchase, lease, exchange, issuance of stock or other equity or debt
securities, merger, reorganization or any other method) (a) acquisition by such

                                        2
<PAGE>   9

Person of any other Person, which Person shall then become consolidated with the
acquiring  Person in accordance with GAAP, (b) acquisition by such Person of all
or any substantial part of the assets of any other Person, or (c) acquisition by
such Person of any Towers, Tower Sites or other communications tower facilities,
communication tower management businesses or related contracts.

                  "Additional  Amounts"  shall  have the  meaning  set  forth in
Section 2.13 hereof.

                  "Adjustment  Date" shall mean the second  (2nd)  Business  Day
after the date on which the  financial  statements  referred  to in Section  7.1
hereof for the two (2) full fiscal  quarters of the Borrower  from and after the
Agreement Date have been delivered to the Arrangers.

                  "Administrative  Agent"  shall  mean CIBC,  as  administrative
agent   hereunder   for  the  Credit   Parties,   together  with  any  successor
Administrative Agent hereunder.

                  "Administrative  Agent's  Office" shall mean the office of the
Administrative Agent, located at 425 Lexington Avenue, New York, New York 10017,
or such other office as may be designated  pursuant to the provisions of Section
13.1 of this Agreement.

                  "Advance" or  "Advances"  shall mean  amounts  advanced to the
Borrower pursuant to Article 2 hereof on the occasion of any borrowing.

                  "Affiliate"  shall  mean,  with  respect to a Person,  (a) any
other Person directly or indirectly controlling,  controlled by, or under common
control with,  such first  Person;  and (b) any Person having direct or indirect
beneficial ownership of ten percent (10%) or more of the equity interest in such
first Person. For purposes of this definition,  "control" when used with respect
to any Person includes,  without limitation,  power, whether direct or indirect,
to direct or cause the direction of the  management  and policies of such Person
whether through the ownership of voting securities or other equity interests, by
contract or otherwise.  Unless otherwise  specified,  "Affiliate" as used herein
shall mean an Affiliate of the Borrower, and shall include,  without limitation,
Holdco.

                  "Agents" shall mean,  collectively,  the Administrative Agent,
the Collateral Agent, the  Co-Documentation  Agents,  the Syndication Agent, the
Managing Agents, the Arrangers and the Lead Arrangers.

                  "Agreement"  shall  mean  this  Amended  and  Restated  Credit
Agreement.

                  "Agreement  Date"  shall  mean  the  date  as  of  which  this
Agreement is dated.

                  "AirTouch"  shall mean Verizon  Wireless (VAW) LLC, a Delaware
limited liability company, formerly known as Vodafone, AirTouch Licenses LLC, as
successor to AirTouch Communications, Inc.

                  "AirTouch  Acquisition"  shall mean the  Acquisition by CTI or
another Tower  Subsidiary  from AirTouch of certain Towers with respect to which
AirTouch is the anchor tenant and Tower Assets related thereto,  pursuant to the
terms and  conditions  of the AirTouch  Lease  Documents  for an aggregate  cash
Purchase Price not to exceed $180,000,000.

                                        3

<PAGE>   10

                  "AirTouch  Lease  Documents"  shall  mean,  collectively,  the
AirTouch Sublease,  the AirTouch Master Site Lease Agreement,  the AirTouch Site
Development  and  Build-to-Suit  Agreement and all other  documents  executed in
connection with the AirTouch Acquisition.

                  "AirTouch Master Site Lease Agreement" shall mean that certain
Master Tower Site Lease Agreement  dated as of August 15, 2000,  among AirTouch,
CTI and Holdco.

                  "AirTouch Site Development and Build-to-Suit  Agreement" shall
mean that certain  Site  Development  and  Build-to-Suit  Agreement  dated as of
August 15, 2000, among AirTouch, CTI and Holdco.

                  "AirTouch  Sublease" shall mean that certain Sublease dated as
of  August  15,  2000,  among  AirTouch,  the other  parties  named  therein  as
"Sublessors," CTI and Holdco.

                  "Annualized  EBITDA" shall mean, as of any  calculation  date,
the result of (a) the sum of (i) EBITDA (Other Operations), plus (ii) Annualized
EBITDA  (Tower  Operations),  less (b)  Corporate  Overhead  for the twelve (12)
calendar  month period ended on the last day of the calendar month most recently
ended for which financial statements are then available.

                  "Annualized  EBITDA (Tower  Operations)" shall mean, as of any
calculation date, the product of (a) EBITDA with respect to the Tower Operations
for the calendar  month most recently ended for which  financial  statements are
then available, times (b) twelve (12).

                   "Applicable  Law" shall mean,  in respect of any Person,  all
provisions  of  constitutions,   statutes,  rules,  regulations  and  orders  of
governmental bodies or regulatory agencies applicable to such Person, including,
without limiting the foregoing, the Necessary Authorizations, the Communications
Act, zoning  ordinances and all Environmental  Laws, all rules,  regulations and
published decisions of the FCC and the FAA, and all orders, decisions, judgments
and decrees of all courts and arbitrators in proceedings or actions to which the
Person in question is a party or by which it is bound.

                  "Applicable  Margin"  shall  mean  the  interest  rate  margin
applicable to Advances hereunder as determined in accordance with Section 2.3(f)
hereof.

                  "Approved Fund" shall mean, with respect to any Lender that is
a fund that  invests  in  commercial  loans,  any other  fund  that  invests  in
commercial  loans and is managed or  advised by the same  investment  advisor as
such Lender or by an Affiliate of such investment advisor.

                  "Arrangers"  shall  mean,  collectively,  CIBC  World  Markets
Corp.,  CSFB, Bank of Montreal,  Chicago Branch and TD Securities  (USA) Inc. in
their respective capacities as arrangers under this Agreement.

                  "Assets"  shall mean any or all of the  property and assets of
the Borrower and the Designated Subsidiaries.

                  "Assignment   and  Assumption   Agreement"   shall  mean  each
Assignment  and Assumption  Agreement,  in  substantially  the form of Exhibit A
attached hereto, pursuant to which a Lender may, subject to Section 13.5 hereof,
sell or  participate  a portion  of its  Loans  (other  than  Swing  Loans)  and
Commitments.

                                        4
<PAGE>   11

                  "Assignment  of  Airtouch  Lease  Documents"  shall  mean that
certain  Assignment of Contracts dated as of August 15, 2000, among Holdco,  CTI
and the Collateral Agent, for the benefit of the Senior Credit Parties, pursuant
to which Holdco and CTI have collaterally  assigned to the Collateral Agent, for
the benefit of the Senior Credit  Parties,  all of their  interest in and rights
under each of the Airtouch Lease Documents.

                  "Assignment of Lodestar Acquisition Documents" shall mean that
certain  Assignment of Acquisition  Documents dated as of May 18, 2000,  between
the  Borrower and the  Collateral  Agent,  for the benefit of the Senior  Credit
Parties,  pursuant  to which  the  Borrower  has  collaterally  assigned  to the
Collateral  Agent,  for the  benefit of the Senior  Credit  Parties,  all of its
interest in and rights under each of the Lodestar Acquisition Documents.

                  "Assignment of Nextel  Acquisition  Documents" shall mean that
certain  Assignment of Acquisition  Documents dated as of April 20, 1999,  among
Holdco,  the  Borrower,  TAS and the  Collateral  Agent,  for the benefit of the
Senior  Credit  Parties,  pursuant to which  Holdco,  the  Borrower and TAS have
collaterally  assigned to the  Collateral  Agent,  for the benefit of the Senior
Credit  Parties,  all of their  interest in and rights  under each of the Nextel
Acquisition Documents (other than the Nextel Subordinated Security Agreement).

                  "Assignment  of NTA  Investment  Documents"  shall  mean  that
certain  Assignment  of  Contracts  dated as of August  30,  1999,  between  the
Borrower and the Collateral Agent, for the benefit of the Senior Credit Parties,
pursuant to which the  Borrower  has  collaterally  assigned  to the  Collateral
Agent, for the benefit of the Senior Credit Parties,  all of its interest in and
rights under each of the NTA Investment Documents.

                  "Assignment  of SBC Lease  Documents"  shall mean that certain
Assignment  of Contracts  dated as of the  Agreement  Date,  among  Holdco,  the
Borrower,  STI and the  Collateral  Agent,  for the benefit of the Senior Credit
Parties,  pursuant  to which  Holdco,  the  Borrower  and STI have  collaterally
assigned to the Collateral  Agent, for the benefit of the Senior Credit Parties,
all of their interest in and rights under each of the SBC Lease Documents.

                  "Assignments   of   Acquisition    Documents"    shall   mean,
collectively,  the Assignment of Nextel Acquisition Documents, the Assignment of
AirTouch Lease Documents,  the Assignment of SBC Lease Documents, the Assignment
of Lodestar  Acquisition  Documents,  the Assignment of NTA Investment Documents
and each other collateral  assignment executed by Holdco, the Borrower or any of
the Subsidiary Guarantors,  in form and substance reasonably satisfactory to the
Collateral  Agent,  of their  respective  interest in and rights under any other
Permitted Acquisition Documents.

                  "Authorized  Signatory"  shall mean such senior personnel of a
Person as may be duly  authorized  and  designated  in writing by such Person to
execute documents, agreements and instruments on behalf of such Person.

                  "Available Revolving Commitment" shall mean (a) as of any date
prior to the Revolving Loan Availability Date, the lesser of (i) $50,000,000 and
(ii) the amount of the Revolving Commitment,  and (b) on and after the Revolving
Loan Availability Date, the amount of the Revolving Commitment.

                                        5
<PAGE>   12

                  "Bankruptcy Code" shall mean the United States Bankruptcy Code
(11 U.S.C. Section 101 et seq.), as now or hereafter amended, and any successor
statute.

                  "Base Rate" shall mean, as of any date, a simple interest rate
per annum equal to the higher of (x) the Prime  Rate,  or (y) the sum of (A) the
Federal Funds Rate, plus (B) one-half of one percent (1/2%). The Base Rate shall
be adjusted automatically as of the opening of business on the effective date of
each change in the Prime Rate or the Federal  Funds Rate, as the case may be, to
account for such change.

                  "Base Rate Advance"  shall mean an Advance (other than a Swing
Loan) which the Borrower  requests to be made as a Base Rate Advance or which is
converted to a Base Rate Advance in  accordance  with the  provisions of Section
2.2 hereof.

                  "Borrower"  shall  have the  meaning  assigned  thereto in the
recitals to this Agreement.

                  "Borrower  Debt" shall mean, as of any  calculation  date, all
Funded Debt of the Borrower and the Designated  Subsidiaries,  on a consolidated
basis, in each case without duplication.

                  "Borrower   Interest   Coverage  Ratio"  shall  mean,  on  any
calculation  date,  for the  Borrower  and  the  Designated  Subsidiaries,  on a
consolidated  basis, the ratio of (a) Annualized  EBITDA as at such date, to (b)
cash Borrower  Interest  Expense for the  immediately  preceding four (4) fiscal
quarter period.

                  "Borrower  Interest  Expense" shall mean, for any period,  for
the  Borrower and the  Designated  Subsidiaries  on a  consolidated  basis,  all
interest expense paid or accrued in respect of Borrower Debt (including, without
limitation,  the  interest  component  of payments for such period in respect of
Capitalized  Lease  Obligations),  together with  recurring  fees (in any event,
including, without limitation, all fees due under Section 2.4 hereof) associated
therewith  (other than fees payable on or prior to the  Agreement  Date),  after
giving effect to any Interest Hedge Agreements,  all as determined in accordance
with GAAP, excluding underwriting, arrangement and similar fees.

                  "Borrower Leverage Ratio" shall mean, on any calculation date,
the ratio of (a) Borrower Debt, to (b) Annualized EBITDA.

                  "Borrower  Pledge  Agreement"  shall mean that certain Amended
and Restated  Borrower Pledge Agreement  between the Borrower and the Collateral
Agent, for the benefit of the Credit Parties, dated as of the Agreement Date, in
substantially the form of Exhibit B attached hereto.

                  "Broadcast   Services   Business"   shall  mean  the  services
component of the  Borrower's and the Designated  Subsidiaries'  broadcast  tower
business, but specifically excluding the ownership and leasing of Towers.

                  "Business  Day"  shall mean a day on which  banks and  foreign
exchange  markets are open for the  transaction  of business  required  for this
Agreement in London and New York, as relevant to the determination to be made or
the action to be taken.

                                        6
<PAGE>   13

                  "Canadian  Subsidiaries"  shall  mean,  collectively,  Foreign
Subsidiaries organized under the laws of Canada.

                  "Capital  Expenditures"  shall mean, in respect of any Person,
expenditures  in respect of capital  assets which are required to be capitalized
in accordance  with GAAP;  provided,  however,  that  expenditures in respect of
replacement assets made using any proceeds of casualty insurance policies to the
extent permitted under this Agreement shall not constitute Capital Expenditures.

                  "Capitalized  Lease Obligation" shall mean that portion of any
obligation  of a  Person  as  lessee  under  a lease  which  is  required  to be
capitalized on the balance sheet of such lessee in accordance with GAAP.

                  "Certificate of Financial Condition" shall mean a certificate,
substantially  in the form of Exhibit C attached  hereto,  signed by a Financial
Officer  of the  Borrower,  together  with any  schedules,  exhibits  or annexes
appended thereto.

                  "Change of Control" shall mean any of the following:

                  (a) any `person'  (as such term is used in Sections  13(d) and
14(d) of the Exchange Act), other than one or more Controlling Shareholders,  is
or becomes the  beneficial  owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange  Act,  except that for purposes of this clause (a) such person shall be
deemed to have `beneficial ownership' of all shares that any such person has the
right to acquire,  whether such right is  exercisable  immediately or only after
the passage of time),  directly or indirectly,  of more than thirty-five percent
(35%) of the  total  voting  power of the  Voting  Stock  of  Holdco;  provided,
however,  that the Controlling  Shareholders do not have the right or ability by
voting  power,  contract or  otherwise,  to elect or  designate  for  election a
majority of the board of  directors  of Holdco (for the  purposes of this clause
(a), such other person shall be deemed to  beneficially  own any Voting Stock of
an entity  (the  `specified  entity')  held by any  other  entity  (the  `parent
entity'),  if such  other  person is the  beneficial  owner (as  defined in this
clause (a)),  directly or indirectly,  of more than thirty-five percent (35%) of
the voting power of the Voting Stock of such parent  entity and the  Controlling
Shareholders  `beneficially  own' (as defined in this clause  (a)),  directly or
indirectly,  in the  aggregate a lesser  percentage  of the voting  power of the
Voting  Stock of such  parent  entity  and do not have the right or  ability  by
voting  power,  contract or  otherwise,  to elect or designate for election of a
majority of the board of directors of such parent entity); or

                  (b) during any period of two (2) consecutive years (or, in the
case this event occurs  within the two (2) year period  following  the Agreement
Date,  such  shorter  period  as  shall  have  begun  on  the  Agreement  Date),
individuals  who at the  beginning  of such  period  constituted  the  board  of
directors of Holdco  (together  with any new  directors  whose  election by such
board of  directors or whose  nomination  for  election by the  shareholders  of
Holdco was  approved  by a vote of a majority  of the  directors  of Holdco then
still in office who were either  directors  at the  beginning  of such period or
whose election or nomination for election was previously so approved)  cease for
any reason to  constitute a majority of the board of directors of Holdco then in
office; or

                  (c)  Holdco's  merger or  consolidation  with or into  another
Person or the merger of another Person with or into Holdco if Holdco's

                                        7
<PAGE>   14

securities that are outstanding  immediately prior to such transaction and which
represent one hundred  percent (100%) of the aggregate  voting power of Holdco's
Voting  Stock are changed into or exchanged  for cash,  securities  or property,
unless  pursuant  to  such  transaction  such  securities  are  changed  into or
exchanged  for,  in  addition  to any  other  consideration,  securities  of the
surviving  corporation that represent  immediately  after such  transaction,  at
least a  majority  of the  aggregate  voting  power of the  Voting  Stock of the
surviving corporation; or

                  (d) the sale of all or substantially all of Holdco's assets to
another  Person,  other  than a  Controlling  Shareholder  or a  Person  that is
controlled by the Controlling Shareholders; or

                  (e) the failure of Holdco to own and control, free of any Lien
or encumbrance  other than Liens in favor of the Collateral  Agent and Permitted
Liens, one hundred percent (100%) of the issued and outstanding Equity Interests
of the Borrower (other than any Permitted High-Yield Securities); or

                  (f) the failure of the  Borrower to own and  control,  free of
any Lien or encumbrance  other than Permitted  Liens, one hundred percent (100%)
of the issued and outstanding Equity Interests of each of the Tower Subsidiaries
and at least  fifty-one  percent  (51%) of the  issued  and  outstanding  Equity
Interests of each of the other Designated Subsidiaries.

                  "CIBC" shall mean Canadian Imperial Bank of Commerce acting by
or  through  one or  more  of its  affiliates,  branches  or  agencies,  and any
successor thereof.

                  "Code"  shall  mean the  Internal  Revenue  Code of  1986,  as
amended from time to time.

                  "Co-Documentation  Agents" shall mean,  collectively,  Bank of
Montreal,  Chicago  Branch and TD  Securities  (USA) Inc.,  in their  respective
capacities as co-documentation agents under this Agreement.

                  "Co-Locator"  shall mean any tenant on a Tower which is not an
anchor tenant.

                  "Co-Location  Percentage"  shall  mean,  with  respect  to the
Borrower and the Designated Subsidiaries on a consolidated basis, as of the last
day of any fiscal  quarter,  the  percentage  determined  by dividing  the total
number  of  co-location  leases  executed  by the  Borrower  or  any  Designated
Subsidiary  during the fiscal  quarter  then ended by the total number of Towers
owned or leased by the Borrower or a Designated  Subsidiary  as of the first day
of such fiscal quarter, multiplied by four (4).

                  "Collateral"  shall mean all  property  pledged as  collateral
security for the Obligations  pursuant to the Security Documents or otherwise to
the extent set forth in the Security  Documents,  and all other  property of the
Borrower or any of the  Subsidiary  Guarantors  that is now or  hereafter in the
possession  or control of any Credit Party or in which any Credit Party has been
granted a Lien.

                  "Collateral  Agent"  shall  mean  CIBC,  in  its  capacity  as
collateral  agent for the  Credit  Parties  hereunder  and  under  the  Security
Documents, together with any successor Collateral Agent hereunder.

                                        8
<PAGE>   15

                  "Commitment Ratio" shall mean, with respect to any Lender, the
ratio, expressed as a percentage, of (i) the Commitments of such Lender, divided
by (ii) the  aggregate  Commitments  of all of the Lenders.  As of the Agreement
Date,  the  Commitments of each Lender are set forth on Schedule 1 to the Lender
Addendum delivered by such Lender.

                  "Commitments"   shall  mean,   collectively,   the   Revolving
Commitment,  the  Tranche  A  Commitment,  the  Tranche  B  Commitment  and,  if
applicable, the Incremental Facility Commitments.

                  "Communications  Act"  shall  mean the  Communications  Act of
1934,  and  any  similar  or  successor  federal  statute,  and  the  rules  and
regulations  of the FCC  thereunder,  all as  amended  and as the same may be in
effect from time to time.

                  "Concourse Communications" shall mean Concourse Communications
Group LLC, a Delaware limited  liability  company all of the Equity Interests of
which are owned by the Borrower and NTA.

                  "Controlling  Shareholders" shall  mean, collectively,  Welsh,
Whitney,  Stephen H. Clark, David P. Tomick, Joe L. Finley,  Waller-Sutton Media
Partners, L.P., Kitty Hawk Limited Partnership,  III, Kitty Hawk Capital Limited
Partnership,  IV, Eagle Creek Capital,  L.L.C.,  The North  Carolina  Enterprise
Fund,  L.P.,  Finley Family  Limited  Partnership,  SBC and Nextel or any Person
directly or indirectly controlling,  controlled by, or under common control with
any of the foregoing.

                  "Convertible  Securities"  shall mean,  collectively,  (a) any
Equity  Interests  of any  Person  which are  convertible,  at the option of the
holder thereof,  into Funded Debt at any time on or before the date which is six
(6) months following the Final Maturity Date and (b) any Equity Interests of any
Person which are  convertible,  other than at the option of the  Borrower,  into
Funded Debt upon the occurrence of a triggering event, but such Equity Interests
shall  only  be  deemed  Convertible  Securities  upon  the  occurrence  of such
triggering event.

                  "Corporate Overhead" shall mean, for any period, the result of
(a) the Borrower's  selling,  general and  administrative  expenses  during such
period, less (b) any pro forma adjustments,  which shall be satisfactory to each
of the Lead Arrangers, to the selling, general and administrative expense of any
Person that became a Designated  Subsidiary  or was merged with or  consolidated
into the Borrower or a Designated Subsidiary during such period.

                  "Credit  Parties" shall mean,  collectively,  the Agents,  the
Lenders,  the  Issuing  Bank,  the Swing Loan Lender  and,  if  applicable,  the
Incremental Facility Lenders.

                  "Credit Support  Provider" shall have the meaning set forth in
Section 13.5(k) hereof.

                  "CSFB"  shall mean Credit  Suisse  First  Boston  acting by or
through one or more of its affiliates,  branches or agencies,  and any successor
thereof.

                  "CTI"  shall  mean   California   Tower,   Inc.,   a  Delaware
corporation and a wholly owned Restricted Subsidiary of the Borrower.

                                        9
<PAGE>   16

                  "Default"  shall  mean any  Event of  Default,  and any of the
events  specified  in  Section  10.1,  regardless  of whether  there  shall have
occurred  any  passage  of time or  giving of  notice,  or both,  that  would be
necessary in order to constitute such event an Event of Default.

                  "Default  Rate"  shall mean a simple per annum  interest  rate
equal to the sum of (a) the Base Rate, (b) the Applicable  Margin then in effect
with respect to Base Rate Advances, and (c) two percent (2%).

                  "Designated   Subsidiaries"  shall  mean,  collectively,   the
Restricted  Subsidiaries,  the Foreign  Subsidiaries,  the Domestic  SpectraSite
Mexico  Subsidiaries,  the Foreign  SpectraSite Mexico Subsidiaries and, at such
time as the Borrower (directly or indirectly) shall own a majority of the Equity
Interests  in  Concourse   Communications,   Concourse  Communications  and  its
Subsidiaries;  provided,  however, that, in the event the Majority Lenders agree
to the  release of any  Guaranties  issued by or any  Collateral  pledged by any
Domestic  SpectraSite  Mexico  Subsidiary  or  any  Foreign  SpectraSite  Mexico
Subsidiary  pursuant to Section 6.17(c) hereof, such Subsidiary shall thereafter
not constitute a Designated Subsidiary for purposes of this Agreement.

                  "Dollars"  or "$"  shall  mean the  basic  unit of the  lawful
currency of the United States of America.

                  "Domestic  SpectraSite  Mexico  Investments"  shall  mean  any
direct or indirect minority  Investments by the Borrower in the Equity Interests
of Persons organized under the laws of the United States or any state thereof or
the District of Columbia  which  Investments  comprise a portion of  SpectraSite
Mexico to the extent not designated by the Borrower as Unrestricted Investments.

                  "Domestic   SpectraSite   Mexico   Subsidiaries"   shall  mean
Subsidiaries  of the Borrower  organized  under the laws of the United States or
any state  thereof or the  District of Columbia  which  Subsidiaries  comprise a
portion of  SpectraSite  Mexico to the extent not  designated by the Borrower as
Unrestricted Subsidiaries.

                  "EBITDA" shall mean, for any period,  for the Borrower and the
Designated Subsidiaries on a consolidated basis, the sum of (a) Net Income, plus
(b) to the extent deducted in determining Net Income,  the result of (i) the sum
of each of the following for such period:  (A) Borrower  Interest  Expense,  (B)
income tax expense, (C) depreciation and amortization, (D) extraordinary losses,
(E) all other  non-cash  interest  or  charges  and (F)  non-recurring  charges,
restructuring  charges,  transaction  expenses and underwriters' fees, less (ii)
extraordinary gains and cash payments (not otherwise deducted in determining Net
Income) made during such period with respect to non-cash charges that were added
back in a prior period;  provided,  however, (I) with respect to any Person that
became a  Designated  Subsidiary,  or was merged with or  consolidated  into the
Borrower or any Designated Subsidiary, during such period, or the Acquisition by
the Borrower or any of the Designated  Subsidiaries of a substantial part of the
assets of any Person,  "EBITDA" shall also include (x) the EBITDA of such Person
or  attributable  to such assets,  as applicable,  during such period as if such
Acquisition,  merger  or  consolidation  had  occurred  on the first day of such
period,  and (y) an amount equal to the projected expense savings to be realized
by the Borrower or such Subsidiary,  as the case may be, in connection with such
Acquisition,  as  demonstrated  to the  satisfaction of and approved by the Lead
Arrangers,  and  (II)  with  respect  to any  Person  that  has  ceased  to be a
Designated Subsidiary during such period, or any material assets of the Borrower
or any of the Designated Subsidiaries sold or otherwise disposed of by the

                                       10
<PAGE>   17

Borrower or any such Designated  Subsidiary  during such period,  "EBITDA" shall
exclude the EBITDA of such Person or attributable to such assets, as applicable,
during such period as if such sale or disposition of such Designated  Subsidiary
or such assets had occurred on the first day of such period;  provided  further,
however,  that  solely for  purposes of  determining  Annualized  EBITDA  (Tower
Operations)  and EBITDA  (Other  Operations),  "EBITDA"  shall be the sum of (I)
EBITDA as determined  based on the foregoing  calculation,  plus (II)  Corporate
Overhead for the relevant period.

                  "EBITDA (Other  Operations)" shall mean, as of any calculation
date,  EBITDA with respect to the Other  Operations for the twelve (12) calendar
month period ended on the last day of the calendar month most recently ended for
which financial statements are then available.

                  "Eligible  Assignee" shall mean (a) a Lender, (b) an Affiliate
of a Lender, (c) an Approved Fund, or (d) any other Person (other than a natural
Person) approved by the Administrative  Agent and, unless a Default has occurred
and is continuing,  the Borrower (such approval of the Administrative  Agent and
the Borrower not to be unreasonably withheld or delayed).

                  "Eligible Debt Offering" shall mean that portion of any public
or private  issuance of any Funded Debt or any Convertible  Securities by Holdco
conducted  after the Agreement  Date with respect to which the Net Cash Proceeds
received  by  Holdco  are  Invested  in the  Borrower  or any of the  Restricted
Subsidiaries in the form of New Affiliated Equity.

                  "Eligible  Equity  Offering"  shall  mean that  portion of any
public or private  issuance  of  Permitted  High-Yield  Securities  constituting
preferred  equity  securities by Holdco  conducted after the Agreement Date with
respect to which the Net Cash  Proceeds  received by Holdco are  Invested in the
Borrower or any of the  Restricted  Subsidiaries  in the form of New  Affiliated
Equity.

                  "Environmental  Laws" shall mean,  with respect to any Person,
all  applicable  federal,  state,  local and municipal  laws,  statutes,  rules,
regulations and ordinances,  codes, common law, consent agreements to which such
Person  is a  party  or  by  which  it is  bound,  orders,  decrees,  judgments,
injunctions,  permits,  licenses,  authorizations and other requirements issued,
promulgated,  approved  or  entered  thereunder  affecting  such  Person  or its
property  and  relating  to, or  imposing  liability  or  standards  of  conduct
concerning, public or occupational health, safety or the pollution or protection
of the environment,  including,  without limitation, those relating to releases,
discharges,  emissions, spills, leaching, or disposals to, on, under, or in air,
water,  land or ground water,  to the withdrawal or use of ground water,  to the
use,  handling  or  disposal  of  polychlorinated  biphenyls,  asbestos  or urea
formaldehyde,  to the  treatment,  storage,  disposal or management of hazardous
substances.

                  "Equity  Interests" shall mean, as applied to any Person,  any
capital stock (common or preferred),  general or limited partnership  interests,
limited  liability  company  interests  or  other  equivalents  of such  Person,
regardless of class or designation,  and all warrants, options, purchase rights,
conversion or exchange rights,  voting rights,  calls or claims of any character
with respect thereto.

                                       11
<PAGE>   18

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as in effect from time to time.

                  "ERISA  Affiliate"  shall mean any "affiliate" of the Borrower
within the meaning of Section 414 of the Code.

                  "Eurodollar Advance" shall mean an Advance (other than a Swing
Loan) which the Borrower requests to be made as a Eurodollar Advance or which is
continued  as or  converted  to a  Eurodollar  Advance  in  accordance  with the
provisions of Section 2.2 hereof.

                  "Eurodollar Advance Period" shall mean, in connection with any
Eurodollar Advance, the term of such Advance selected by the Borrower, which may
be one (1),  two (2),  three  (3) or six (6)  months,  and  subject  to the last
proviso  of this  definition,  nine (9) or  twelve  (12)  months,  or  otherwise
determined in accordance with this Agreement; provided, however, notwithstanding
the  foregoing,  (a)  any  applicable  Eurodollar  Advance  Period  which  would
otherwise  end on a day which is not a  Business  Day shall be  extended  to the
succeeding  Business  Day unless  such  Business  Day falls in another  calendar
month, in which case such  Eurodollar  Advance Period shall end on the preceding
Business Day, (b) any applicable Eurodollar Advance Period which begins on a day
for which there is no numerically corresponding day in the calendar month during
which such  Eurodollar  Advance  Period is to end shall  (subject  to clause (i)
above) end on the last day of such calendar month, and (c) no Eurodollar Advance
Period shall extend beyond the applicable  Maturity Date or such earlier date as
would interfere with the Borrower's repayment  obligations under Sections 2.6 or
2.7 hereof; provided further,  however, the Borrower may not select a Eurodollar
Advance Period in excess of six (6) months unless the  Administrative  Agent has
notified  the  Borrower  that  each  applicable  Lender  has  consented  to such
Eurodollar Advance Period.

                  "Eurodollar  Base Rate" shall mean,  with  respect to each day
during each  Eurodollar  Advance  Period,  the rate per annum  determined by the
Administrative  Agent to be the arithmetic mean (rounded,  if necessary,  to the
nearest  1/100th of 1%) of the offered rates for deposits in Dollars with a term
comparable  to such  Eurodollar  Advance  Period  that  appears on the  Telerate
British Bankers Assoc.  Interest  Settlement Rates Page at  approximately  11:00
a.m.  (London  time),  on the second  (2nd) full  Business  Day  preceding  such
Eurodollar Advance Period; provided, however, that if there shall at any time no
longer exist a Telerate British Bankers Assoc.  Interest  Settlement Rates Page,
"Eurodollar  Base  Rate"  shall  mean,  with  respect  to each day  during  each
Eurodollar Advance Period, the rate per annum equal to the rate at which CIBC is
offered Dollar deposits at or about 11:00 a.m. (New York time), two (2) Business
Days prior to the beginning of such  Eurodollar  Advance Period in the interbank
eurodollar  market  where the  eurodollar  and  foreign  currency  and  exchange
operations in respect of its  Eurodollar  Advances are then being  conducted for
delivery on the first day of such  Eurodollar  Advance  Period for the number of
days  comprised  therein  and in the  amount  comparable  to the  amount  of its
Eurodollar  Advance to be outstanding  during such Eurodollar Advance Period. As
used herein,  "Telerate British Bankers Assoc.  Interest  Settlement Rates Page"
shall  mean  the  display  designated  as  page  3750  on  the  Telerate  System
Incorporated  Service  (or such  other  page as may  replace  such  page on such
service for the purpose of  displaying  the rates at which  Dollar  deposits are
offered by leading banks in the London interbank deposit market).

                                       12
<PAGE>   19

                  "Eurodollar  Rate" shall mean, with respect to each day during
each  Eurodollar  Advance  Period,  a rate per annum  determined for such day in
accordance  with the following  formula  (rounded,  if necessary,  upward to the
nearest 1/100th of 1%):

                              Eurodollar Base Rate
                      1.00 - Eurodollar Reserve Percentage

                  "Eurodollar  Reserve  Percentage"  shall mean,  for any day as
applied to a Eurodollar  Advance,  the aggregate  (without  duplication)  of the
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 reserve  requirements  prescribed for eurocurrency
funding (currently referred to as "Eurocurrency  Liabilities" in Regulation D of
such Board) maintained by a member bank of the Federal Reserve System.

                  "Event of Default"  shall mean any of the events  specified in
Section 10.1,  provided that any requirement for notice or lapse of time or both
has been satisfied.

                  "Excess  Cash Flow" shall mean,  with  respect to the Borrower
and the Designated  Subsidiaries  on a consolidated  basis, as of the end of any
fiscal  year of the  Borrower  and  based on the  audited  financial  statements
required to be  provided  under  Section  7.2  hereof,  the excess of (a) EBITDA
(without  regard to either  proviso in the  definition of the term "EBITDA") for
such fiscal year,  over (b) the sum of the following items for such fiscal year:
(i)  Fixed  Charges;  (ii)  non-maintenance  Capital  Expenditures;   and  (iii)
permanent,   voluntary  prepayments  of  the  Loans  (accompanied  by  permanent
reduction  in a like  amount of the  Revolving  Commitment,  in the case of such
prepayment of the Revolving Loans) hereunder.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as it may be amended, and any successor act thereto.

                  "Exemption  Certificate"  shall have the  meaning set forth in
Section 2.13 hereof.

                  "FAA" shall mean the Federal Aviation  Administration,  or any
other similar or successor agency of the federal government.

                  "FCC" shall mean the Federal Communications Commission, or any
other similar or successor agency of the federal  government  administering  the
Communications Act.

                  "Federal  Funds Rate" shall mean, as of any date, the weighted
average of the rates on overnight federal funds transactions with the members of
the Federal Reserve System  arranged by federal funds brokers,  as published for
such day (or, if such day is not a Business Day, for the next preceding Business
Day)  by the  Federal  Reserve  Bank of New  York,  or,  if such  rate is not so
published for any day which is a Business Day, the average of the quotations for
such day on such transactions  received by the  Administrative  Agent from three
(3) federal funds brokers of recognized  standing selected by the Administrative
Agent.

                  "Final  Maturity  Date" shall mean  December 31, 2007, or such
earlier date on which the payment of all  outstanding  Obligations  shall be due
(whether by acceleration or otherwise).

                                       13
<PAGE>   20

                  "Financial  Covenants"  shall  mean  from  time  to  time  the
financial covenants applicable to the Borrower from time to time as set forth in
Article 9 hereof.

                  "Financial  Officer"  shall mean,  with respect to any Person,
the chief  financial  officer,  treasurer  or vice  president of finance of such
Person.

                  "Financial Statements" shall have the meaning assigned thereto
in Section 5.1(k) hereof.

                  "Fixed Charge  Coverage  Ratio" shall mean, on any calculation
date, for the Borrower and the Designated  Subsidiaries on a consolidated basis,
the ratio of (a)  Annualized  EBITDA as at such date, to (b) the amount of Fixed
Charges during the immediately preceding four (4) fiscal quarter period.

                  "Fixed  Charges" shall mean, for any period,  for the Borrower
and  the  Designated  Subsidiaries,  on a  consolidated  basis,  the  sum of the
following for such period:  (a) cash Borrower Interest  Expense;  (b) mandatory,
permanent  scheduled  principal  repayments  with respect to Borrower  Debt; (c)
maintenance Capital  Expenditures;  (d) taxes payable; and (e) the amount of any
Restricted  Payments  made to Holdco or to the holders of minority  interests in
any of the Designated Subsidiaries.

                  "Foreign  Investments"  shall mean direct or indirect minority
Investments  by the Borrower in the Equity  Interests of Persons (other than any
Foreign  SpectraSite  Mexico   Investments)   organized  under  the  laws  of  a
jurisdiction  other than the United  States or any state thereof or the District
of  Columbia to the extent not  designated  by the  Borrower as an  Unrestricted
Investment.

                  "Foreign  Lender"  shall have the meaning set forth in Section
2.13 hereof.

                  "Foreign  SpectraSite Mexico Investments" shall mean direct or
indirect minority Investments by the Borrower in the Equity Interests of Persons
organized  under the laws of a jurisdiction  other than the United States or any
state thereof or the District of Columbia which  Investments  comprise a portion
of  SpectraSite  Mexico to the  extent  not  designated  by the  Borrower  as an
Unrestricted Investment.
                  "Foreign   SpectraSite   Mexico   Subsidiaries"   shall   mean
Subsidiaries of the Borrower  organized  under the laws of a jurisdiction  other
than the United  States or any state  thereof or the District of Columbia  which
Subsidiaries  comprise  a  portion  of  SpectraSite  Mexico  to the  extent  not
designated by the Borrower as an Unrestricted Subsidiary.

                  "Foreign  Subsidiaries"  shall  mean the  direct  or  indirect
Subsidiaries  of  the  Borrower  (other  than  any  Foreign  SpectraSite  Mexico
Subsidiaries) that are organized under the laws of a jurisdiction other than the
United States or any state thereof or the District of Columbia to the extent not
designated by the Borrower as an Unrestricted Subsidiary.

                  "Fund"  shall mean any Person  (other  than a natural  Person)
that is (or will  be)  primarily  engaged  in  making,  purchasing,  holding  or
otherwise  investing in commercial loans and similar extensions of credit in the
ordinary course of its business.

                                       14
<PAGE>   21

                  "Funded Debt" shall mean, with respect to any Person as of any
calculation  date,  the sum of the following as of such date:  (a) the principal
amount of all outstanding  Indebtedness  for money borrowed of such Person;  (b)
the principal amount of all  Indebtedness for money borrowed  Guaranteed by such
Person; (c) the stated amount of all letters of credit issued for the account of
such Person;  (d) all Capitalized Lease Obligations of such Person; and (e) if a
Default or Event of Default then exists hereunder or a default then exists under
any Interest Hedge  Agreements,  the net termination  payment  obligations under
such Interest Hedge Agreements.

                  "GAAP" shall mean generally accepted accounting  principles in
the United States, consistently applied.

                  "Governmental   Authority"   shall  mean  any   government  or
political  subdivision  of the United States or any other country or any agency,
authority,   board,   bureau,   central   bank,   commission,    department   or
instrumentality thereof or therein,  including,  without limitation,  any court,
tribunal, grand jury or arbitrator, in each case whether foreign or domestic, or
any  entity  exercising   executive,   legislative,   judicial,   regulatory  or
administrative  functions  of or  pertaining  to such  government  or  political
subdivision.

                  "Granting  Lender" shall have the meaning  assigned thereto in
Section 13.5(k).

                  "Guarantors" shall mean, collectively,  Holdco and each of the
Subsidiary Guarantors.

                  "Guaranty" or "Guaranteed," as applied to an obligation, shall
mean and include (a) a guaranty,  direct or indirect,  in any manner,  of all or
any  part  of  such  obligation,  and (b) any  agreement,  direct  or  indirect,
contingent or otherwise,  the practical  effect of which is to assure in any way
the   payment  or   performance   (or   payment  of  damages  in  the  event  of
non-performance)  of all or any  part of  such  obligation,  including,  without
limiting  the  foregoing,   any   reimbursement   obligations  with  respect  to
outstanding  letters  of  credit,  but not  including  any  endorsements  of any
instrument for collection in the ordinary course of business.

                  "Hazardous  Materials"  shall mean any substances,  materials,
compounds  or  wastes  defined,   listed,   or  subject  to  control  under  any
Environmental Law as being hazardous, toxic, extremely hazardous or dangerous.

                  "Holdco"  shall  have  the  meaning  assigned  thereto  in the
recitals to this Agreement.

                  "Holdco  6-3/4%  Convertible  Notes  (2010)"  shall  mean  the
unsecured  6-3/4%  Senior  Convertible  Notes  due 2010  issued  by Holdco in an
aggregate principal amount of $200,000,000, pursuant to the terms and conditions
of the applicable Holdco Notes Indenture.

                  "Holdco 10-3/4% Notes (2010)" shall mean the unsecured 10-3/4%
Senior  Notes due 2010  issued by Holdco  in an  aggregate  principal  amount of
$200,000,000,  pursuant to the terms and  conditions  of the  applicable  Holdco
Notes Indenture.

                  "Holdco 11-1/4% Notes (2009)" shall mean the unsecured 11-1/4%
Senior Discount Notes due 2009 issued by Holdco in an aggregate principal amount
at maturity of $586,800,000 (yielding $340,000,000 of gross proceeds to Holdco),
pursuant to the terms and conditions of the applicable Holdco Notes Indenture.

                                       15
<PAGE>   22

                  "Holdco 12% Notes  (2008)" shall mean the unsecured 12% Senior
Discount  Notes due 2008 issued by Holdco in an  aggregate  principal  amount at
maturity of  $225,200,000  (yielding  $125,000,000 of gross proceeds to Holdco),
pursuant to the terms and conditions of the applicable Holdco Notes Indenture.

                  "Holdco 12-1/2% Notes (2010)" shall mean the unsecured 12-1/2%
Senior  Notes due 2010  issued by Holdco  in an  aggregate  principal  amount of
$200,000,000  (yielding  $195,000,000 of gross proceeds to Holdco),  pursuant to
the terms and conditions of the applicable Holdco Notes Indenture.

                  "Holdco 12-7/8% Notes (2010)" shall mean the unsecured 12-7/8%
Senior Discount Notes due 2010 issued by Holdco in an aggregate principal amount
at maturity of $559,800,000 (yielding $300,000,000 of gross proceeds to Holdco),
pursuant to the terms and conditions of the applicable Holdco Notes Indenture.

                  "Holdco EBITDA" shall mean, for any period, for Holdco and its
Subsidiaries on a consolidated basis, the sum of (a) Holdco Net Income, plus (b)
to the extent deducted in determining  Net Income,  the result of (i) the sum of
each of the following for such period:  (A) Holdco Interest Expense,  (B) income
tax expense,  (C) depreciation and amortization,  (D) extraordinary  losses, (E)
all  other  non-cash  interest  or  charges  and  (F)   non-recurring   charges,
restructuring  charges,  transaction  expenses and underwriters' fees, less (ii)
extraordinary  gains and cash payments (not  otherwise  deducted in  determining
Holdco Net Income) made during such period with respect to non-cash charges that
were added back in a prior period;  provided,  however,  (I) with respect to any
Person that became a Subsidiary  of Holdco,  or was merged with or  consolidated
into Holdco or any Subsidiary of Holdco,  during such period, or the Acquisition
by Holdco or any of its  Subsidiaries of a substantial part of the assets of any
Person,   "EBITDA"  shall  also  include  (x)  the  EBITDA  of  such  Person  or
attributable  to such  assets,  as  applicable,  during  such  period as if such
Acquisition,  merger  or  consolidation  had  occurred  on the first day of such
period,  and  (y)  with  respect  to  any  Acquisition  by the  Borrower  or any
Designated  Subsidiary,  an amount equal to the projected  expense savings to be
realized by the Borrower or any such Subsidiary that is a Designated Subsidiary,
as the case may be, in connection with such Acquisition,  as demonstrated to the
satisfaction of and approved by the Lead Arrangers, and (II) with respect to any
Person that has ceased to be a Subsidiary of Holdco  during such period,  or any
material assets of Holdco or any of its Subsidiaries sold or otherwise  disposed
of by Holdco or any such Subsidiary  during such period,  "EBITDA" shall exclude
the EBITDA of such Person or attributable to such assets, as applicable,  during
such period as if such sale or disposition of such Subsidiary or such assets had
occurred on the first day of such period.

                  "Holdco  Interest  Expense"  shall mean,  for any period,  for
Holdco and its  Subsidiaries on a consolidated  basis, all interest expense paid
or accrued  in  respect  of Funded  Debt  (including,  without  limitation,  the
interest  component of payments for such period in respect of Capitalized  Lease
Obligations),  together with  recurring fees (in any event,  including,  without
limitation,  all fees due under Section 2.4 hereof) associated  therewith (other
than fees payable on or prior to the Agreement Date), after giving effect to any
Interest Hedge Agreements,  all as determined in accordance with GAAP, excluding
underwriting, arrangement and similar fees.

                                       16
<PAGE>   23

                  "Holdco   Net  Income"   shall   mean,   for  Holdco  and  its
Subsidiaries on a consolidated  basis, for any period,  net income determined in
accordance with GAAP.

                  "Holdco  Notes" shall mean,  collectively,  the Holdco  6-3/4%
Convertible  Notes (2010),  the Holdco 10-3/4% Notes (2010),  the Holdco 11-1/4%
Notes (2009),  the Holdco 12% Notes (2008),  the Holdco 12-1/2% Notes (2010) and
the Holdco 12-7/8% Notes (2010).

                  "Holdco Notes Indentures" shall mean,  collectively,  (a) that
certain Indenture dated as of June 26, 1998,  between Holdco, as issuer, and the
Indenture  Trustee,  in respect of the Holdco 12% Notes (2008), (b) that certain
Indenture  dated as of April  20,  1999,  between  Holdco,  as  issuer,  and the
Indenture  Trustee,  in respect of the Holdco  11-1/4%  Notes  (2009),  (c) that
certain Indenture dated as of March 15, 2000, between Holdco, as issuer, and the
Indenture  Trustee,  in respect of the Holdco  10-3/4%  Notes  (2010),  (d) that
certain Indenture dated as of March 15, 2000, between Holdco, as issuer, and the
Indenture  Trustee,  in respect of the Holdco  12-7/8%  Notes  (2010),  (e) that
certain Indenture dated as of November 20, 2000, in respect of the Holdco 6-3/4%
Convertible  Notes (2010),  and (f) that certain  Indenture dated as of December
20, 2000, in respect of the Holdco 12-1/2% Notes (2010).

                  "Holdco Pledge  Agreement" shall mean that certain Amended and
Restated Stock Pledge Agreement between Holdco and the Collateral Agent, for the
benefit of the Credit Parties,  dated as of the Agreement Date, in substantially
the form of Exhibit D attached  hereto,  pursuant to which Holdco has pledged to
the Collateral Agent all of the Equity Interests, whether now owned or hereafter
acquired by Holdco, in the Borrower.

                  "Incremental Facility  Commitments" shall mean,  collectively,
the aggregate  commitments of the Incremental  Facility Lenders to make Advances
of the  Incremental  Facility  Loans to the Borrower in accordance  with Section
2.16 hereof.

                  "Incremental Facility  Indebtedness" shall mean all principal,
interest, fees, and other amounts from time to time due or accrued in connection
with the Incremental Facility Loans.

                  "Incremental  Facility  Lenders" shall mean any lenders having
an Incremental Facility Commitment or making Incremental Facility Loans pursuant
thereto.

                  "Incremental  Facility Loans" shall mean the amounts  advanced
by the  Incremental  Facility  Lenders to the Borrower as  Incremental  Facility
Loans under the Incremental Facility Commitment, not to exceed the amount of the
Incremental  Facility  Commitment,  and  evidenced by the  Incremental  Facility
Notes.

                  "Incremental  Facility  Maturity Date" shall mean the maturity
date  for  the  Incremental  Facility  Loans  as  set  forth  in the  Notice  of
Incremental Facility Commitment applicable thereto.

                  "Incremental   Facility   Notes"  shall  mean  those   certain
Incremental Facility Notes described in Section 2.16 hereof.

                  "Indebtedness"  shall mean,  with  respect to any Person,  and
without duplication, (a) all indebtedness for money borrowed of such Person, (b)
all  obligations  of such Person for the deferred  purchase price (to the extent
determinable) of property or services (other than current trade payables

                                       17
<PAGE>   24

incurred in the ordinary course of such Person's business), provided that to the
extent any such  obligation  is reflected as a liability on the balance sheet of
such Person,  such obligation  shall in any event be considered  "Indebtedness",
(c) all  obligations  of such Person  evidenced by notes,  bonds,  debentures or
similar  instruments,   (d)  all  indebtedness  created  or  arising  under  any
conditional  sale or other title  retention  agreement  with respect to property
acquired by such Person  (even  though the rights and  remedies of the seller or
lender under such agreement in the event of default are limited to  repossession
or sale of such  property),  (e) all  obligations of such Person,  contingent or
otherwise,  as an account party or applicant under or in respect of acceptances,
letters of credit,  surety bonds or similar  arrangements,  (f) the  liquidation
value of all  redeemable  preferred  Equity  Interests of such  Person,  (g) all
direct or indirect  obligations of any other Person secured by any Lien to which
any  property  or asset  owned by such  Person is  subject,  whether  or not the
obligation  secured  thereby  shall  have been  assumed,  (h) to the  extent not
otherwise  included,  any Guaranty and all Capitalized Lease Obligations of such
Person and all  obligations  of such Person with respect to leases  constituting
part of a sale and lease-back arrangement and (i) net termination payments under
Interest Hedge Agreements.

                  "Indenture  Trustee" shall mean United States Trust Company of
New York, in its capacity as trustee under the Holdco Notes Indentures.

                  "Indemnified  Parties" shall mean those Persons eligible to be
indemnified  by the Borrower and the  Designated  Subsidiaries  pursuant to this
Agreement,  and  shall  include  each of the  Credit  Parties  and each of their
respective  employees,   representatives,   officers,   agents,   directors  and
Affiliates.

                  "Initial  Maturity  Date"  shall mean June 30,  2007,  or such
earlier date on which the payment of all  outstanding  Obligations in respect of
the  Revolving  Commitment  and the  Tranche A Loans  shall be due  (whether  by
acceleration or otherwise).

                  "Insolvency  Proceeding"  shall  mean,  with  respect  to  any
Person, any insolvency, receivership,  bankruptcy, dissolution,  liquidation, or
reorganization  proceeding,  or  any  other  proceeding,  whether  voluntary  or
involuntary,  by or against such Person,  under any bankruptcy or insolvency law
or  laws,  federal  or  state,   relating  to  the  relief  of  debtors  of  any
jurisdiction,  whether  now or  hereafter  in  effect,  and in any  out-of-court
composition,   assignment  for  the  benefit  of  creditors,   readjustment   of
Indebtedness, reorganization, extension or other debt arrangement of any kind.

                  "Intellectual   Property  Security   Agreements"  shall  mean,
collectively, (a) that certain Amended and Restated Trademark Security Agreement
between the Borrower  and the  Collateral  Agent,  for the benefit of the Credit
Parties,  dated as of the Agreement Date, in  substantially  the form of Exhibit
E-1 attached hereto,  (b) that certain  Subsidiary  Trademark Security Agreement
between each of the Subsidiary  Guarantors having any rights with respect to any
trademarks or trademark  registrations and the Collateral Agent, for the benefit
of the Credit Parties, dated as of the Agreement Date, in substantially the form
of Exhibit E-2 attached  hereto,  (c) that certain  Subsidiary  Patent  Security
Agreement  between  each of the  Subsidiary  Guarantors  having any rights  with
respect to any patents or patent registrations and the Collateral Agent, for the
benefit of the Credit Parties,  dated as of the Agreement Date, in substantially
the  form of  Exhibit  E-3  attached  hereto,  and (d)  any  similar  agreements
delivered pursuant to Section 6.15 hereof.

                                       18
<PAGE>   25

                  "Interest Hedge Agreements" shall mean any interest rate swap,
cap, collar, floor, caption or swaption agreements,  or any similar arrangements
designed to hedge the risk of variable  interest  rate  volatility  or to reduce
interest costs,  arising at any time between the Borrower,  on the one hand, and
any one or more of the Lenders,  or any other Person (other than an Affiliate of
the  Borrower),  on the other hand,  as such  agreement  or  arrangement  may be
modified, supplemented and in effect from time to time.

                  "Investment" shall mean, with respect to any Person, any loan,
advance or extension of credit (other than to customers, lessees or licensees in
the  ordinary  course of  business)  by such Person to, or any Guaranty or other
contingent liability with respect to the Equity Interests, Funded Debt, or other
obligations of, or any contributions to the capital of, any other Person, or any
ownership,  purchase or other  acquisition by such Person of any interest in any
Equity  Interests or other  securities of any such other  Person,  other than an
Acquisition; and "Invest," "Investing" or "Invested" shall mean the making of an
Investment.  "Investment"  shall  also  include  the  total  cost of any  future
commitment  or other  obligation  binding on any Person to make an Investment or
any subsequent Investment.

                  "Issuing Bank" shall mean the Administrative Agent, any Lender
or any of their respective  Affiliates,  in each case as issuer of any Letter of
Credit hereunder.

                  "L/C Obligations"  shall mean, at any date, the sum of (a) the
aggregate  amount then  available to be drawn under all  outstanding  Letters of
Credit and (b) the  aggregate  amount of drawings  under Letters of Credit which
have not then been  reimbursed  by the  Borrower  pursuant  to  Section  2.14(e)
hereof.

                  "L/C  Participants"  shall mean with  respect to any Letter of
Credit,  collectively,  all  of  the  Lenders  which  have  issued  a  Revolving
Commitment  other than the Swing Loan  Lender (in its  capacity  as a Swing Loan
Lender) or the applicable Issuing Bank.

                  "L/C  Participating  Interest"  shall mean with respect to any
Letter of Credit (a) in the case of the Issuing Bank with respect  thereto,  its
interest in such Letter of Credit and any Letter of Credit Application  relating
thereto after giving effect to the granting of participating  interests therein,
if any,  pursuant  hereto  and (b) in the  case of  each  L/C  Participant,  its
undivided  participating  interest  in such  Letter of Credit  and any Letter of
Credit Application relating thereto.

                  "Lead Arrangers" shall mean, collectively, CIBC World Markets
Corp.  and CSFB in their  respective  capacities  as lead  arrangers  under this
Agreement.

                  "Lender  Addendum"  shall  mean,  with  respect to any initial
Lender,  a Lender  Addendum,  substantially  in the form of  Exhibit F  attached
hereto,  to be executed and  delivered by such Lender on the  Agreement  Date as
provided in Section 13.18 hereof.

                  "Lenders"  shall  mean  the  financial  institutions  or other
entities  that from time to time  become  parties to this  Agreement  as Lenders
(including the Swing Loan Lender).

                  "Letter of Credit  Application"  shall mean an  application in
such form as an  Issuing  Bank may  specify  from time to time  requesting  such
Issuing Bank to issue a Letter of Credit.

                                       19
<PAGE>   26

                  "Letter of Credit Committed Amount" shall mean $50,000,000.

                  "Letters  of Credit"  shall mean any and all letters of credit
issued by any Issuing Bank for the account of the  Borrower  pursuant to Section
2.14 of this Agreement.

                  "Lien" shall mean, with respect to any property, any mortgage,
lien,  pledge,  negative  pledge or other  agreement not to pledge,  assignment,
charge, security interest, title retention agreement, levy, execution,  seizure,
attachment,  garnishment or other similar  encumbrance of any kind in respect of
such property,  whether created by statute,  contract,  common law or otherwise,
and whether choate or inchoate, vested or perfected.

                  "Loan  Documents"  shall  mean,   without   limitation,   this
Agreement,   the  Notes,  the  Security  Documents,   the  Nextel  Intercreditor
Agreement,  all Requests  for  Advance,  all Requests for Issuance of Letters of
Credit, all Swing Loan Requests, the Certificate of Financial Condition, the Use
of Proceeds Letter, all Performance  Certificates,  all Letters of Credit issued
hereunder,  all Interest  Hedge  Agreements  with a Lender or any Affiliate of a
Lender,  any fee letters executed by the Borrower in favor of the Administrative
Agent with respect to certain fees payable in connection with the administration
of  this  Agreement,   and  any  other  document  or  agreement  or  certificate
(including,  without  limitation,  any legal  opinion  issued by counsel for the
Borrower or any of its Affiliates and any reliance letter issued with respect to
any such legal opinion) executed or delivered in connection with or contemplated
by this Agreement.

                  "Loans" shall mean,  collectively,  the Revolving  Loans,  the
Swing Loans, the Term Loans and, if applicable, the Incremental Facility Loans.

                  "Lodestar Acquisition Documents" shall mean that certain Stock
Purchase  Agreement dated as of April 12, 2000, between the Borrower and LeBlanc
& Royale  Enterprises,  Inc., a corporation  organized under the laws of Canada,
together with all exhibits and schedules  thereto and all documents  executed in
connection therewith.

                  "Majority  Lenders"  shall mean (i) prior to the occurrence of
an Event of Default and the termination of Unfunded Commitments, Lenders the sum
of whose Unfunded  Commitments plus Loans outstanding equals or exceeds 50.1% of
the sum of such items for all Lenders,  or (ii) at any time that there exists an
Event of Default  hereunder,  and  Unfunded  Commitments  have been  terminated,
Lenders the total of whose Loans (including, with respect to each Revolving

                                       20
<PAGE>   27

Lender,  such  Lender's  participating  interest  in the Swing  Loans,  and with
respect to each L/C Participant,  the amount of its L/C Participating  Interest)
outstanding  equals or exceeds 50.1% of the total principal  amount of the Loans
and the L/C Participating Interests then outstanding hereunder.

                  "Majority  Pro  Rata  Lenders"  shall  mean  (i)  prior to the
occurrence of an Event of Default and the  termination of Unfunded  Commitments,
Lenders the sum of whose Unfunded  Commitments (other than Incremental  Facility
Commitments  structured  as an  institutional  tranche)  plus Loans  (other than
Tranche B Loans and Incremental  Facility Loans structured as Tranche B Loans or
another institutional tranche) outstanding equals or exceeds 50.1% of the sum of
such items for all  Lenders,  or (ii) at any time that there  exists an Event of
Default hereunder,  and Unfunded  Commitments have been terminated,  Lenders the
total of whose Loans (other than Tranche B Loans and Incremental  Facility Loans
structured as Tranche B Loans or another institutional tranche) (including, with
respect to each Revolving Lender,  such Lender's  participating  interest in the
Swing  Loans,  and with respect to each L/C  Participant,  the amount of its L/C
Participating  Interest)  outstanding  equals  or  exceeds  50.1%  of the  total
principal  amount  of the Loans  (other  than  Tranche  B Loans and  Incremental
Facility Loans structured as Tranche B Loans or another  institutional  tranche)
and the L/C Participating Interests then outstanding hereunder.

                  "Majority  Tranche  B  Lenders"  shall  mean (i)  prior to the
occurrence of an Event of Default and the  termination of Unfunded  Commitments,
Lenders the sum of whose Unfunded Commitments consisting of Incremental Facility
Commitments  structured  as an  institutional  tranche  plus Tranche B Loans and
Incremental   Facility   Loans   structured   as  Tranche  B  Loans  or  another
institutional  tranche  outstanding  equals or exceeds  50.1% of the sum of such
items for all Lenders, or (ii) at any time that there exists an Event of Default
hereunder,  and Unfunded Commitments have been terminated,  Lenders the total of
whose Tranche B Loans and  Incremental  Facility  Loans  structured as Tranche B
Loans or another  institutional  tranche  outstanding equals or exceeds 50.1% of
the total principal amount of the Tranche B Loans and Incremental Facility Loans
structured as Tranche B Loans or another  institutional tranche then outstanding
hereunder.

                  "Mandatory  Borrowing" shall have the meaning given thereto in
Section 2.15(b) hereof.

                  "Managing Agents" shall mean, collectively, Barclays Bank plc,
Bank of New York, Deutsche Bank, Rabobank, General Electric Capital Corporation,
and The Bank of Nova Scotia.

                  "Material  Contracts"  shall have the meaning assigned thereto
in Section 5.1(y) hereof.

                  "Material Towers" shall mean, as of any date of determination,
any Tower or any group or set of Towers  wheresoever  located to which more than
ten percent  (10%) of  Annualized  EBITDA for the twelve (12) month  period most
recently ended is attributable.

                  "Materially  Adverse  Effect"  shall  mean  (a)  any  material
adverse effect upon the business, operations,  properties,  condition (financial
or otherwise), capitalization, assets or liabilities or results of operations of
the  Restricted  Group taken as a whole,  or upon the ability of the  Restricted
Group,  taken as a whole, to conduct the Tower  Operations,  or (b) any material
adverse effect upon the business, operations,  properties,  condition (financial
or otherwise), capitalization, assets or liabilities or results of operations of
the  Borrower  and the  Designated  Subsidiaries  taken as a whole,  or upon the
ability of the Borrower and the Designated  Subsidiaries,  taken as a whole,  to
conduct the Tower Operations,  or (c) a material adverse effect upon the binding
nature,  validity, or enforceability of this Agreement,  the Notes and the other
Loan  Documents  or upon the ability of the  Borrower  or any of the  Designated
Subsidiaries  to perform the payment  obligations or other material  obligations
under this Agreement or any other Loan Document, or upon the rights, benefits or
interests  of the  Lenders in and to the Loans or the  rights of the  Collateral
Agent in the  Collateral;  in any case,  whether  resulting from any single act,
omission,  situation, status, event or undertaking, or taken together with other
such acts, omissions, situations, statuses, events or undertakings.

                                       21
<PAGE>   28

                  "Maturity Date" shall mean, with respect to all amounts owing,
or  Advances  made,  under  (a)  the  Revolving  Commitment  or  the  Tranche  A
Commitment,  the Initial Maturity Date, (b) the Tranche B Commitment,  the Final
Maturity  Date and (c) any  Incremental  Facility  Commitment,  the  Incremental
Facility Maturity Date applicable thereto.

                  "Mortgage" shall mean any mortgage,  deed to secure debt, deed
of trust, or other instrument  encumbering or transferring  title (in fee simple
or leasehold) to real property, in form and substance reasonably satisfactory to
the  Administrative  Agent,  by  which  the  Borrower  or any of the  Subsidiary
Guarantors  grants a mortgage to the  Collateral  Agent,  for the benefit of the
Credit  Parties,  in  real  estate  owned  or  leased  by the  Borrower  or such
Subsidiary  Guarantor,  in  each  case  to the  extent  delivered  prior  to the
Agreement Date or as otherwise required by this Agreement.

                  "Mortgage  Default" shall have the meaning assigned thereto in
the Mortgages.

                  "Multiemployer  Plan"  shall  have the  meaning  set  forth in
Section 4001(a)(3) of ERISA.

                  "Necessary   Authorizations"   shall  mean  any  local  zoning
ordinances and any rights,  whether based upon any agreement,  statute, order or
otherwise,    licenses,    authorizations,    permits,   consents,    approvals,
registrations,  certificates,  agreements,  permits or other  rights filed with,
granted  by or  entered  into  by a  federal  or  state  governmental  authority
(including,  without limitation,  the FAA and the FCC) which permit or authorize
the construction or maintenance of a Tower or the use of a Tower by the Borrower
or any of the  Designated  Subsidiaries  for wireless  communications  purposes,
together with any amendment, modification or replacement with respect thereto.

                  "Net Income" shall mean,  for the Borrower and the  Designated
Subsidiaries on a consolidated  basis, for any period,  net income determined in
accordance with GAAP.

                  "Net Cash Proceeds"  shall mean, with respect to (i) any sale,
lease, transfer or other disposition (including, without limitation, by casualty
loss  or  condemnation)  of  Assets  by the  Borrower  or any of the  Designated
Subsidiaries,  or (ii) any  receipt  from  Holdco by the  Borrower or any of the
Designated  Subsidiaries  of the  proceeds  from the  issuance  by Holdco of any
Equity  Interests  or other debt or equity  securities  (in any event,  a "Sales
Transaction"),  the  aggregate  amount of cash  received by the Borrower or such
Designated  Subsidiary  for  such  Assets  or  securities  (including,   without
limitation,  any  payments  received  in respect of  covenants  not to  compete,
consulting or management  fees,  and any portion of the amount  received in cash
upon payment of a buyer promissory note or other evidence of Indebtedness),  net
of  (a)  taxes  payable  with  respect  to  any  such  Sales  Transaction,   (b)
contingencies with respect to any such Sales Transaction, appropriately reserved
for by the Borrower or the  applicable  Designated  Subsidiary  under GAAP,  (c)
reasonable and customary  transaction costs properly  attributable to such Sales
Transaction  and payable by the Borrower or any of the  Designated  Subsidiaries
(other  than  to an  Affiliate)  in  connection  with  such  Sales  Transaction,
including, without limitation, sales commissions and underwriting discounts, and
(d) all payments made on any Indebtedness which is secured by any Assets subject
to such Sales Transaction in accordance with the terms of any Lien upon or other
security  arrangement of any kind with respect to such Assets,  or which must by
its terms, or in order to obtain a necessary  consent to such Sales  Transaction
or by Applicable Law be repaid out of the proceeds from such Sales Transaction.

                                       22
<PAGE>   29

                  "New  Affiliated  Equity"  shall  mean the sum of any  amounts
Invested by Holdco in the Borrower or any of the Designated Subsidiaries, in the
form of a  common  equity  contribution  or  issuance,  in  connection  with the
issuance of any Equity Interests or Permitted Debt by Holdco after the Agreement
Date.

                  "Nextel" shall  mean  Nextel  Communications, Inc., a Delaware
corporation.

                  "Nextel  Acquisition"  shall mean the Acquisition of the Tower
Assets and certain build rights pursuant to the Nextel Acquisition Documents.

                  "Nextel Acquisition Documents" shall mean,  collectively,  the
Nextel Master Site Lease Agreement, the Nextel Master Site Commitment Agreement,
the Nextel  Subordinated  Security Agreement,  the Nextel Merger Agreement,  the
Nextel Partners Master Site Lease Agreement, the Real Estate Side Letter and the
Nonassignable Contracts Agreements.

                  "Nextel  Collateral" shall mean the "Collateral," as that term
is defined in the Nextel Subordinated Security Agreement.

                  "Nextel  Intercreditor  Agreement"  shall  mean  that  certain
Intercreditor  and  Subordination  Agreement among the Collateral  Agent,  Tower
Parent  Corp.,  the Nextel  Tenants  (other than Nextel  Partners),  TAS and the
Borrower,  dated as of the  Original  Closing  Date, a copy of which is attached
hereto as Exhibit G.

                  "Nextel  Master  Site  Commitment  Agreement"  shall mean that
certain Master Site Commitment Agreement, dated as of the Original Closing Date,
among Nextel,  the Nextel  Tenants  (other than Nextel  Partners),  Tower Parent
Corp., Holdco and TAS.

                  "Nextel Master Site Lease  Agreement"  shall mean that certain
Master Site Lease  Agreement,  dated as of the Original  Closing Date, among the
Nextel Tenants (other than Nextel Partners) and TAS.

                  "Nextel Merger  Agreement"  shall mean that certain  Agreement
and Plan of Merger  dated as of February  10,  1999,  as amended on the Original
Closing Date, among Nextel, Tower Parent Corp., Tower Merger Vehicle, Inc., TAS,
the Nextel Tenants (other than Nextel  Partners),  Holdco,  the Borrower and SHI
Merger Sub, Inc., a Delaware corporation.

                  "Nextel Partners" shall mean Nextel Partners Operating Corp.,
a Delaware corporation.

                  "Nextel  Partners Master Site Lease Agreement" shall mean that
certain Master Site Lease  Agreement  dated as of January 4, 2000,  among Nextel
Partners, TAS, the Borrower and the Landlord Parties (as defined therein).

                  "Nextel Related Parties" shall mean, collectively, Nextel, the
Nextel Tenants and their respective Subsidiaries.

                  "Nextel  Subordinated  Lien"  shall  mean  that  certain  Lien
granted by TAS in favor of Tower Parent  Corp.,  as secured party for itself and
on behalf of other  beneficiaries  thereof, on the Nextel Collateral pursuant to
the Nextel Subordinated Security Agreement, which Lien is subordinated pursuant

                                       23

<PAGE>   30
to the terms and conditions of the Nextel Intercreditor Agreement to the Lien in
the Nextel  Collateral in favor of the Collateral  Agent, for the benefit of the
Credit Parties.

                  "Nextel  Subordinated  Security  Agreement"  shall  mean  that
certain Security and Subordination  Agreement,  dated as of the Original Closing
Date,  between TAS, as assignor,  and Tower Parent  Corp.,  as secured party for
itself and on behalf of other beneficiaries thereof.

                  "Nextel Tenants" shall mean, collectively, Nextel of New York,
Inc., a Delaware corporation, Nextel Communications of the Mid-Atlantic, Inc., a
Delaware  corporation,  Nextel South  Corp.,  a Georgia  corporation,  Nextel of
Texas, Inc., a Texas corporation, Nextel West Corp., a Delaware corporation, and
Nextel  of  California,   Inc.,  a  Delaware  corporation,   each  d/b/a  Nextel
Communications,  Nextel  Partners and each other Nextel  Related Party that is a
tenant  under the Nextel  Master  Site Lease  Agreement  or the Nextel  Partners
Master Site Lease Agreement.

                  "Nonassignable Contracts Agreements" shall mean, collectively,
all Nonassignable  Contracts Agreements,  dated as of the Original Closing Date,
among a Nextel Tenant, Tower Parent Corp. and TAS.

                  "Non-Disturbance  Agreement"  shall  mean  any  Subordination,
Non-Disturbance  and  Attornment  Agreement,  in form and  substance  reasonably
satisfactory  to the  Administrative  Agent,  among the  Borrower  or any of the
Designated Subsidiaries,  the Collateral Agent and a tenant leasing space on any
Tower from the Borrower or such Designated Subsidiary.

                  "Notes" shall mean,  collectively,  the Revolving  Notes,  the
Swing Loan Notes,  the Term Notes and, if applicable,  the Incremental  Facility
Notes.

                  "Notice  of  Conversion/Continuation"  shall  mean a notice in
substantially the form of Exhibit H attached hereto.

                  "Notice of  Incremental  Facility  Commitment"  shall have the
meaning set forth in Section 2.16(b) hereof.

                  "NTA" shall mean NTA, LLC, a Massachusetts  limited  liability
company.

                  "NTA Investment"  shall mean the Investment by the Borrower in
Concourse  Communications  (including  the  staged  purchase  of the  issued and
outstanding  Equity  Interests of, and the making of certain loans to, Concourse
Communications) pursuant to the NTA Investment Documents, in an aggregate amount
not to exceed during the term of this Agreement the sum of (a) $8,400,000, which
is the aggregate amount of the Borrower's Investment in Concourse Communications
as of the Agreement  Date,  plus (b) the amount of any New Affiliated  Equity to
the extent allocated solely to this purpose, plus (c) $50,000,000.

                  "NTA Investment Documents" shall mean, collectively,  (a) that
certain  Operating  Agreement dated as of August 30, 1999,  between the Borrower
and NTA, (b) that certain Loan  Agreement  dated as of August 30, 1999,  between
the Borrower and  Concourse,  together with all exhibits and schedules  thereto,
(c) that certain  Security  Agreement  dated as of August 30, 1999,  between the
Borrower and Concourse Communications,  together with all exhibits and schedules
thereto,  (d) that certain Loan Agreement  dated as of August 30, 1999,  between
Concourse Communications and New York Telecom Partners, LLC, together with all

                                       24
<PAGE>   31

exhibits and schedules thereto,  (e) that certain Security Agreement dated as of
August 30, 1999, between Concourse and New York Telecom Partners,  LLC, together
with all exhibits and schedules thereto, and (f) all other documents executed by
the Borrower in connection with the NTA Investment.

                  "Obligations"  shall  mean  (a) all  payment  and  performance
obligations of every kind, nature and description of Holdco,  the Borrower,  the
Designated Subsidiaries,  and any other obligors to the Credit Parties (or their
respective Affiliates in the case of Interest Hedge Agreements), or any of them,
under  this  Agreement  and  the  other  Loan  Documents   (including,   without
limitation, any interest, fees, costs, expenses and other charges accruing after
any Insolvency  Proceeding of Holdco, the Borrower or any Designated  Subsidiary
commences  regardless of whether such interest,  fees, costs,  expenses or other
charges are deemed  allowed or recoverable in such  Insolvency  Proceeding),  as
they may be  amended  from time to time,  or as a result of  making  the  Loans,
whether such obligations are direct or indirect,  absolute or contingent, due or
not due,  contractual  or  tortious,  liquidated  or  unliquidated,  arising  by
operation of law or otherwise,  now existing or hereafter  arising,  and (b) the
obligation  to pay an amount equal to the amount of any and all damage which the
Credit  Parties (or their  respective  Affiliates in the case of Interest  Hedge
Agreements),  or any of them,  may suffer by reason of a breach by  Holdco,  the
Borrower,  any of the  Designated  Subsidiaries  or any  other  obligor,  of any
obligation,  covenant or undertaking with respect to this Agreement or any other
Loan Document.

                  "Original Closing Date" shall mean April 20, 1999.

                  "Original Nextel Towers" shall mean those Towers acquired from
the Nextel Related  Parties on the Original  Closing Date as to which any of the
Nextel  Tenants  is the  anchor  tenant  and which  are  subject  to the  Nextel
Subordinated Lien.

                  "Other  Operations"  shall mean all businesses (other than the
Tower  Operations) of the Borrower and the Designated  Subsidiaries,  including,
without  limitation,  to the extent not included in the Tower Operations,  their
Tower Site acquisition and Tower Site management businesses.

                  "Participants"  shall  have the  meaning  assigned  thereto in
Section 13.5(b) hereof.

                  "Payment  Date"  shall  mean the  last  day of any  Eurodollar
Advance Period.

                  "PBGC" shall mean the Pension Benefit Guaranty Corporation, or
any successor thereto.

                  "Performance  Certificate"  shall  mean  a  certificate  of  a
Financial  Officer  of  the  Borrower  as  to  its  financial  performance,   in
substantially the form attached hereto as Exhibit I.

                  "Permitted  Acquisition  Documents"  shall mean all  documents
executed  by  Holdco,  the  Borrower  or  any of the  Subsidiary  Guarantors  in
connection with a Permitted Acquisition or a Permitted Investment.

                  "Permitted  Acquisitions"  shall mean Acquisitions made by the
Borrower or any of the Designated  Subsidiaries  as and to the extent  permitted
under Section 8.5 hereof.

                  "Permitted  Canadian  Investments"  shall mean,  collectively,
Acquisitions   of,  and  Investments  in,  Canadian   Subsidiaries  and  Foreign
Investments, which Foreign Investments are Persons organized under the laws of

                                       25
<PAGE>   32

Canada,  made  by the  Restricted  Group  (directly  or  indirectly)  after  the
Agreement  Date in an  aggregate  amount  not to exceed  during the term of this
Agreement the sum of (a) $10,000,000,  plus (b) the amount of any New Affiliated
Equity to the extent allocated solely to this purpose.

                  "Permitted  Debt"  shall  mean  Indebtedness  permitted  to be
incurred and to remain  outstanding  by Holdco,  the Borrower and the Designated
Subsidiaries, pursuant to Section 8.1 hereof.

                  "Permitted   Dispositions"   shall  mean  the  sale  or  other
disposition of Assets by the Borrower or any of the Designated  Subsidiaries  as
and to the extent permitted under Section 8.5 hereof.

                  "Permitted  High-Yield  Securities" shall mean,  collectively,
(a) preferred equity securities issued by the Borrower or Holdco,  and (b) other
debt  securities  issued  by Holdco  (including,  without  limitation,  any debt
securities  convertible into Equity  Interests of Holdco),  as an "add-on" under
the Holdco Notes Indentures or otherwise,  upon the Borrower's  demonstration to
the Lead Arrangers of pro forma compliance with this Agreement through the Final
Maturity Date; provided,  however,  that if such equity securities are issued by
the  Borrower,  such equity  securities  shall have no  creditor-like  rights or
remedies; provided further, however, that in each case, the terms and conditions
of such  securities  (i) shall not be  substantially  more  onerous  (taken as a
whole) on Holdco or the Borrower  than the terms of the Holdco Notes  Indentures
(except for an  increase  in the  interest  rate  payable  thereon to the extent
provided in clauses  (ii)(A)(II)  and (ii)(B)  below);  and (ii) shall  provide,
among other things,  that (A) in the case of discount notes,  neither  dividends
nor  interest  shall  be  payable  (I) in cash at any time  prior  to the  third
anniversary  of the  Agreement  Date or (II) at a coupon no greater than fifteen
percent (15%); (B) in the case of any such debt or equity securities with a cash
pay component thereof,  the aggregate  principal amount thereof and the interest
or dividend  rate  applicable  thereto  shall be no greater  than the  principal
amount  and/or the interest or dividend  rate with respect to which the Borrower
shall have provided the Credit Parties with revised Projections, satisfactory to
the Lead Arrangers,  assuming issuance of such Permitted  High-Yield  Securities
and taking into  account any  Restricted  Payments  permitted to be made to make
interest  or  dividend  payments  with  respect  to  such  Permitted  High-Yield
Securities and  demonstrating  pro forma compliance with this Agreement  through
the Final  Maturity Date;  and (C) such  securities  shall have no required cash
redemptions  (other than customary  change of control and asset sale  redemption
provisions) or principal maturities prior to the day after the first anniversary
of the Final Maturity Date.

                  "Permitted  Investments"  shall mean Investments  described in
and permitted to be made under Section 8.2 hereof.

                  "Permitted Liens" shall mean, as applied to any Person:

                  (a)      Any Lien  in favor of the Collateral  Agent given  to
secure the Obligations;

                  (b) (i) Liens on real  estate  for real  estate  taxes not yet
delinquent  and (ii)  Liens  for  taxes,  assessments,  judgments,  governmental
charges or levies or claims not yet  delinquent or the  non-payment  of which is
being  diligently  contested in good faith by  appropriate  proceedings  and for
which reserves in conformity with GAAP have been set aside on such Person's

                                       26
<PAGE>   33

books,  but  only  so  long  as  no  foreclosure,  distraint,  sale  or  similar
proceedings have been commenced with respect thereto;

                  (c) Liens of  landlords,  carriers,  warehousemen,  mechanics,
laborers,  vendors  (solely  to the  extent  arising  by  operation  of law) and
materialmen  and  other  statutory  Liens  incurred  in the  ordinary  course of
business  for  sums  that  are not more  than  sixty  (60)  days  delinquent  in
accordance  with  their  terms or that are being  diligently  contested  in good
faith, if reserves or appropriate provisions shall have been made therefor;

                  (d)      Liens incurred in the ordinary course of business in
connection with worker's compensation and unemployment insurance or other social
security programs;

                  (e) Easements, rights-of-way, restrictions, survey exceptions,
zoning, land use and environmental restrictions,  and other similar encumbrances
on the use of real property which do not materially  interfere with the ordinary
conduct of the business of such Person or materially detract from the utility or
value of such real property,  or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties  which were not incurred in
connection with  Indebtedness or other  extensions of credit and which do not in
the aggregate materially detract from the value of such properties or materially
impair their use in the operation of the business of such Person;

                  (f)      the Nextel Subordinated Lien;

                  (g) Liens securing  conditional sale, rental or purchase money
obligations permitted to be incurred pursuant to Section 8.1(i) hereof, but only
in the property that is the subject of such obligation;

                  (h) Liens  granted  to secure  the  performance  of letters of
credit,  bids,  tenders,  contracts,  leases,  public or statutory  obligations,
surety,  customs,  appeal and  performance  bonds and other similar  obligations
incurred in the ordinary  course of business and not incurred in connection with
the borrowing of money;

                  (i)      leasehold and license rights and interests granted to
third parties in respect of the Tower Assets;

                  (j)  Liens  in  favor  of the  Borrower  or any  wholly  owned
Restricted  Subsidiary  of the Borrower,  and Liens of any Domestic  SpectraSite
Mexico Subsidiary or any Foreign  SpectraSite  Mexico Subsidiary in favor of any
wholly owned Domestic  SpectraSite Mexico Subsidiary or any wholly owned Foreign
SpectraSite Mexico  Subsidiary,  and Liens of any Foreign Subsidiary (other than
any Canadian  Subsidiary) in favor of any wholly owned Foreign Subsidiary (other
than any Canadian Subsidiary),  and Liens of any Canadian Subsidiary in favor of
any wholly owned Canadian Subsidiary;

                  (k)      any interest in or title of a lessor to any property
subject to a Capitalized  Lease Obligation  permitted to be incurred pursuant to
Section 8.1(b) hereof;

                  (l)      normal provisions in agreements and leases that
restrict the assignment of such agreement or lease;

                                       27
<PAGE>   34

                  (m) negative  pledges and other agreements not to create Liens
contained in the Holdco Notes  Indentures,  any Permitted High Yield  Securities
and any other Permitted Debt;

                  (n)      Liens on Tower Sites leased by the Borrower or any of
the Designated Subsidiaries granted by the fee owner thereof;

                  (o)      rights of first refusal, options and related rights
set forth in any Tower Site Lease Agreement or Tower Space Lease Agreement;

                  (p)      in the case of Holdco, Liens granted by Holdco on the
Equity  Interests  owned by Holdco in any of its  Subsidiaries  (other  than the
Borrower and the Designated Subsidiaries);

                  (q)      normal and customary rights of set-off upon deposits
of cash in favor of banks and other depository institutions;

                  (r) Liens  attaching to cash earnest  money  deposits  made in
connection  with any  letter of intent or  purchase  agreement  entered  into in
connection with a Permitted Acquisition;

                  (s)      judgment Liens not giving rise to an Event of Default
; and

                  (t) Liens on the property or assets of a Person that becomes a
Designated  Subsidiary,  or on any property or assets of another Person acquired
by the Borrower or any Designated  Subsidiary,  in each case after the Agreement
Date,  provided  that (i) such Liens  existed at the time such  Person  became a
Designated  Subsidiary or at the time such property or assets were acquired,  as
applicable,  and were not created,  incurred or assumed in  anticipation of such
acquisition, (ii) any such Lien of a Person that becomes a Designated Subsidiary
is not  expanded to cover any property or assets of such Person  acquired  after
the time such Person became a Designated  Subsidiary (other than proceeds of the
existing collateral in accordance with the instrument creating such Lien), (iii)
any such Lien does not extend to any property or assets owned by the Borrower or
any of the other Designated  Subsidiaries or any other property or assets of the
Designated Subsidiary acquiring the property or assets subject to such Lien, and
(iv) the aggregate  fair market value of property and assets subject to all such
Liens  shall  not at any  time  exceed  $10,000,000  during  the  term  of  this
Agreement.

                  "Permitted  Mexican  Investments"  shall  mean,  collectively,
Investments  made after the Agreement Date by the Restricted  Group (directly or
indirectly) in SpectraSite  Mexico in an amount not to exceed,  in the aggregate
during  the term of this  Agreement,  the sum of (a)  $50,000,000,  plus (b) the
amount of any New  Affiliated  Equity  to the  extent  allocated  solely to this
purpose.

                  "Person"  shall  mean  an  individual,   corporation,  limited
liability company, association,  partnership, joint venture, trust or estate, an
unincorporated organization, a government or any agency or political subdivision
thereof, or any other entity.

                  "Plan"  shall mean,  with  respect to any Person,  an employee
benefit plan within the meaning of Section 3(3) of ERISA sponsored or maintained
by or contributed to by such Person for the benefit of employees of such Person,
but excluding any Multiemployer Plan.

                                       28
<PAGE>   35

                  "Prime  Rate"  shall mean,  at any time,  the rate of interest
adopted by the Administrative  Agent as its reference rate for the determination
of interest  rates for loans of varying  maturities in United States  dollars to
United States residents of varying degrees of creditworthiness  and being quoted
at such time by the Administrative  Agent as its "prime rate." The Prime Rate is
not  necessarily  the  lowest  rate of  interest  charged  to  borrowers  of the
Administrative Agent or its Affiliates.

                  "Prior  Credit  Agreement"  shall  have the  meaning  assigned
thereto in the recitals to this Agreement.

                  "Projections"  shall  have the  meaning  set forth in  Section
4.1(d) hereof.

                  "Property" shall mean any real property or personal  property,
plant,  building,  facility,  structure,   underground  storage  tank  or  unit,
equipment, inventory or other asset owned, leased or operated by Borrower or any
of the Designated Subsidiaries (including, without limitation, any surface water
thereon or adjacent thereto, and soil and groundwater thereunder).

                  "Purchase  Price" shall mean,  with respect to each  Permitted
Acquisition and each Permitted  Disposition,  the total consideration payable in
connection with such Permitted Acquisition or Permitted Disposition, as the case
may be, whether payable in cash, securities,  by a note or other property, or by
the assumption of  Indebtedness  (including,  without  limitation,  all forms of
deferred compensation, such as non-compete, consulting and similar agreements).

                  "Real  Estate  Side  Letter"  shall mean that  certain  Letter
Agreement,  dated as of the Original  Closing Date, from Nextel and agreed to by
Tower Parent Corp., Tower Merger Vehicle, Inc., TAS, each of the Nextel Tenants,
the Borrower, Holdco and SHI Merger Sub, Inc.

                  "Register"  shall have the meaning assigned thereto in Section
13.5(d) hereof.

                  "Reportable Event" shall have the meaning set forth in Section
4043 of ERISA, other than an event for which the reporting  requirement has been
waived by regulations promulgated under such Section.

                  "Request for Advance" shall mean a certificate designated as a
"Request  for  Advance,"  signed  by an  Authorized  Signatory  of the  Borrower
requesting  an Advance  (other than a Swing Loan)  hereunder,  which shall be in
substantially  the form of Exhibit J attached  hereto  and  shall,  among  other
things, (a) specify the date of the Advance,  which shall be a Business Day, the
amount of the Advance,  the type of Advance,  and,  with respect to a Eurodollar
Advance, the Eurodollar Advance Period selected by the Borrower,  (b) state that
there  shall not exist,  on the date of the  requested  Advance  both before and
after giving effect thereto, any Default or Event of Default, and (c) the use of
the proceeds of the Advance being requested.

                                       29
<PAGE>   36

                  "Request  for  Issuance  of Letter of  Credit"  shall mean any
certificate signed by an Authorized Signatory of the Borrower, which certificate
will be denominated a "Request for Issuance of Letter of Credit" and shall be in
substantially  the form  attached  hereto as Exhibit K, and shall,  among  other
things,  (a) specify  the  beneficiary  of the  proposed  Letter of Credit,  the
purpose of the Letter of Credit,  the proposed date of issuance of the Letter of
Credit, which shall be a Business Day, and the documents which must be presented
to draw  under  such  Letter  of  Credit  (including,  without  limitation,  any
documents which the Issuing Bank may require), (b) include, as an attachment,  a
Letter of Credit  Application,  and (c) state that there shall not exist, on the
date of the request  and after  giving  effect to the  issuance of the Letter of
Credit, any Default or Event of Default hereunder.

                  "Restricted Group" shall mean, collectively,  the Borrower and
the Restricted Subsidiaries.

                  "Restricted   Investments"   shall  mean  direct  or  indirect
minority  Investments by the Borrower in the Equity  Interests of Persons (other
than Concourse  Communications or any Domestic  SpectraSite Mexico  Investments)
organized  under  the laws of the  United  States or any  state  thereof  or the
District  of  Columbia,  to  the  extent  not  designated  by  the  Borrower  as
Unrestricted Investments.

                  "Restricted  Payment"  shall mean (a) any  direct or  indirect
distribution,  dividend, redemption or other payment to any Person on account of
any  Equity  Interests  or  other  securities  of  the  Borrower  or  any of the
Designated  Subsidiaries;  (b) any  payment of  principal  of or interest on any
Indebtedness  of any of the Borrower or any of the  Designated  Subsidiaries  in
favor of any Affiliate  other than pursuant to this  Agreement or the other Loan
Documents;  or (c) any payment under any  management or consulting  agreement or
other  similar  agreement or  arrangement  with an Affiliate of the Borrower not
entered into in the ordinary course of business.

                  "Restricted Purchase" shall mean any payment on account of the
purchase,  redemption or other acquisition or retirement of any Equity Interests
or other  securities  of the  Borrower  or any of the  Designated  Subsidiaries,
including,  without  limitation,  any  warrants  or other  rights or  options to
acquire Equity Interests of the Borrower or any of the Designated Subsidiaries.

                  "Restricted  Subsidiaries"  shall mean the direct or  indirect
Subsidiaries  of the  Borrower  (other  than  Concourse  Communications  and any
Domestic SpectraSite Mexico Subsidiaries) organized under the laws of the United
States or any state  thereof  or the  District  of  Columbia  to the  extent not
designated by the Borrower as Unrestricted Subsidiaries.

                  "Revolving  Commitment" shall mean the several  obligations of
certain of the Lenders to advance the sum of up to  $350,000,000 to the Borrower
in accordance with their respective  Revolving  Commitment Ratios and as reduced
from time to time, all pursuant to the terms hereof.

                  "Revolving  Commitment  Ratio" shall mean, with respect to any
Lender, the ratio, expressed as a percentage, of (i) the Revolving Commitment of
such Lender,  divided by (ii) the aggregate Revolving  Commitments of all of the
Lenders.  As of the Agreement  Date, the Revolving  Commitment of each Lender is
set forth on Schedule 1 to the Lender  Addendum  delivered  by such Lender under
the caption "Revolving Commitment."

                  "Revolving Loan  Availability  Date" shall mean the earlier of
(a) the date on which at least fifty  percent  (50%) of the Tranche A Commitment
shall be funded and (b) the Tranche A Commitment Reduction Date.

                                       30
<PAGE>   37

                  "Revolving  Loans"  shall  mean,   collectively,   the  amount
advanced  by  certain  of  the  Lenders  to the  Borrower  under  the  Revolving
Commitment,  not to exceed the amount of the Revolving Commitment, and evidenced
by the Revolving Notes.

                  "Revolving   Notes"   shall  mean  those   certain   revolving
promissory notes in the aggregate original principal amount of $350,000,000, one
issued by the Borrower to each of the Lenders issuing a Revolving  Commitment in
accordance  with  each  such  Lender's  Revolving  Commitment  Ratio,  each  one
substantially  in the form of Exhibit L  attached  hereto,  and any  extensions,
modifications,  renewals  or  replacements  of  or  amendments  to  any  of  the
foregoing.

                  "Sales Transaction" shall have the meaning assigned thereto in
the definition of "Net Cash Proceeds".

                  "SBC"  shall  mean  SBC  Communications,  Inc.,  a  Delaware
orporation.

                  "SBC Agreement to Sublease" shall mean that certain  Agreement
to Sublease dated August 25, 2000,  among SBC Wireless (for itself and on behalf
of the Sublessor  Entities  referred to therein),  Holdco and STI, as amended by
Amendment No. 1 thereto dated as of December 14, 2000.

                  "SBC   Build-to-Suit   Agreement"   shall  mean  that  certain
Agreement  to Build To Suit dated as of December  14,  2000,  among SBC Wireless
(for itself and as agent for certain "SBCW Parties" referred to therein), Holdco
and the Borrower.

                  "SBC Lease  Documents" shall mean,  collectively,  (a) the SBC
Agreement  to  Sublease,  (b)  the  SBC  Build-to-Suit  Agreement,  (c)  the SBC
Sublease, and (d) all other documents executed by Holdco, the Borrower or any of
the Subsidiary Guarantors in connection with the SBC Transaction.

                  "SBC  Sublease"  shall mean that  certain  Lease and  Sublease
dated December 14, 2000, among SBC Wireless,  SBC Tower Holdings (for itself and
on behalf of the "SBCW Group Members" referred to therein), Holdco and STI.

                  "SBC Tenants" shall mean, collectively, SBC Tower Holdings and
those legal entities which own or lease the tower assets leased to STI under the
SBC Lease Documents,  those Persons which, directly or indirectly,  control, are
controlled by or under common control with SBC Wireless,  and those Persons with
respect to which SBC  Wireless  owns,  directly  or  indirectly,  at least fifty
percent  (50%) of the Equity  Interests  thereof that is at the time entitled to
vote in the  election of the board of  directors  thereof or which SBC  Wireless
otherwise controls,  which in each case are signatories to the SBC Sublease. For
purposes of this  definition,  "control"  shall mean the ownership,  directly or
indirectly,  of  sufficient  voting  shares  of  an  entity,  or  otherwise  the
possession,  directly  or  indirectly,  of the  power to  direct  or  cause  the
direction  of the  management  and  policies of an entity,  or the power to veto
major  policy  decisions of any such entity,  whether  through the  ownership of
voting securities, by contract or otherwise.

                  "SBC  Tower  Holdings"  shall mean SBC Tower  Holdings  LLC, a
Delaware limited liability company and an Affiliate of SBC.

                                       31
<PAGE>   38

                  "SBC Towers" shall mean the Towers leased by STI in connection
with  the SBC  Transaction  or  constructed  pursuant  to the SBC  Build-to-Suit
Agreement,  and in any case  having an SBC  Tenant  as the  anchor  tenant  with
respect thereto.

                  "SBC Transaction" shall mean the leasing by STI from SBC Tower
Holdings of the economic rights with respect to certain Tower Assets pursuant to
the terms and  conditions  of the SBC Lease  Documents  for an aggregate  amount
payable in cash and Equity  Interests  in a series of  closings  and with a cash
amount not to exceed $985,000,000.

                  "SBC  Wireless"  shall  mean SBC  Wireless,  LLC,  a  Delaware
limited  liability  company (as successor in interest to SBC  Wireless,  Inc., a
Delaware corporation) and an Affiliate of SBC.

                  "Securities  Act" shall mean the  Securities  Act of 1933,  as
amended, and the rules and regulations promulgated thereunder.

                  "Security  Agreement"  shall  mean that  certain  Amended  and
Restated  Security  Agreement between the Borrower and the Collateral Agent, for
the  benefit  of  the  Credit  Parties,  dated  as of  the  Agreement  Date,  in
substantially the form of Exhibit M attached hereto.

                  "Security  Documents"  shall  mean,  without  limitation,  the
Security  Agreement,  the Borrower Pledge Agreement,  all Intellectual  Property
Security Agreements,  all Assignments of Acquisition  Documents,  the Subsidiary
Guaranty,  the Subsidiary Pledge Agreement,  the Subsidiary  Security Agreement,
the Holdco Pledge Agreement, all Mortgages, all Non-Disturbance  Agreements, and
any other  agreement or instrument  providing  Collateral  for the  Obligations,
whether now or hereafter in existence, and any filings, instruments, agreements,
and documents related thereto or to this Agreement, and providing the Collateral
Agent with Collateral for the Obligations.

                  "Security  Interest"  shall  mean  all  Liens  in favor of the
Collateral Agent created hereunder or under any of the Security Documents.

                  "Senior Credit Parties" shall have the same meaning as "Credit
Parties," as defined herein.

                  "Senior   Commitments"   shall   have  the  same   meaning  as
"Commitments," as defined herein.

                  "Senior   Obligations"   shall   have  the  same   meaning  as
"Obligations," as defined herein.

                  "Shared  Tenant  Infrastructure  Sites" shall mean those sites
constructed  within  enclosed  areas,  including,  but not  limited  to,  office
buildings,  casinos, stadiums, shopping malls, airports and tunnels, and capable
of providing  licensed or  unlicensed  wireless  services  within such  enclosed
areas.

                  "SPC"  shall  have the  meaning  assigned  thereto  in Section
13.5(k).

                  "SpectraSite Mexico" shall mean,  collectively,  any direct or
indirect  Subsidiary of the Borrower or other Person in which the Borrower has a
direct or indirect Investment, that in either case owns Towers, Tower Sites or

                                       32
<PAGE>   39

Shared  Tenant  Infrastructure  Sites  located  in Mexico or  conducts a primary
portion  of its tower  management  business  in  Mexico,  and which has not been
designated  by the Borrower as an  Unrestricted  Subsidiary  or an  Unrestricted
Investment.

                  "STI" shall mean Southern Towers, Inc., a Delaware corporation
and a wholly owned Restricted Subsidiary of the Borrower.

                  "Subsidiary"  shall  mean,  as  applied  to  any  Person,  any
corporation  of which more than fifty  percent  (50%) of the  outstanding  stock
(other than directors'  qualifying shares) having ordinary voting power to elect
its board of  directors,  regardless  of the existence at the time of a right of
the  holders  of any class or  classes  of  securities  of such  corporation  to
exercise such voting power by reason of the happening of any contingency, or any
partnership  or other  entity of which  more  than  fifty  percent  (50%) of the
outstanding partnership or other equity interests, is at the time owned directly
or indirectly by such Person,  or by one or more Subsidiaries of such Person, or
by such Person and one or more Subsidiaries of such Person.

                  "Subsidiary Guarantors" shall mean, collectively,  each of the
Restricted  Subsidiaries and, to the extent constituting a Designated Subsidiary
hereunder, each of the Domestic SpectraSite Mexico Subsidiaries.

                  "Subsidiary  Guaranty"  shall mean that  certain  Amended  and
Restated  Subsidiary  Guaranty Agreement issued by each Subsidiary  Guarantor in
favor of the Collateral  Agent, for the benefit of the Credit Parties,  dated as
of the Agreement Date, in  substantially  the form of Exhibit N attached hereto,
and any  similar  guaranty  or any  guaranty  supplement  delivered  pursuant to
Section 6.15 hereof.

                  "Subsidiary   Pledge   Agreement"   shall  mean  that  certain
Subsidiary  Pledge Agreement among each Subsidiary  Guarantor holding any Equity
Interests  in any  Designated  Subsidiary  or  Restricted  Investment,  and  the
Collateral  Agent,  for the  benefit  of the  Credit  Parties,  dated  as of the
Agreement Date, in substantially the form of Exhibit O attached hereto,  and any
similar pledge agreement or any pledge agreement  supplement  delivered pursuant
to Section 6.15 hereof.

                  "Subsidiary   Security  Agreement"  shall  mean  that  certain
Amended  and  Restated   Subsidiary  Security  Agreement  among  the  Subsidiary
Guarantors  and the  Collateral  Agent,  for the benefit of the Credit  Parties,
dated as of the Agreement Date, in substantially  the form of Exhibit P attached
hereto, and any similar security agreement or any security agreement  supplement
delivered pursuant to Section 6.15 hereof.

                  "Swing Loan Committed Amount" shall mean $10,000,000.

                  "Swing Loans" shall mean revolving  loans made to the Borrower
by the Swing Loan Lender from time to time for the Swing Loan Lender's  account,
which revolving loans shall be made in accordance with Sections 2.1(b) and 2.15.

                  "Swing   Loan   Lender"   shall   mean  any   Lender   or  the
Administrative   Agent  as  agreed  to  at  any  time  by  the   Borrower,   the
Administrative  Agent  and,  if  applicable,  such  Lender,  in  either  case as
designated  in  accordance  with this  Agreement,  in its capacity as Swing Loan
Lender under this Agreement.  The initial Swing Loan Lender shall be The Bank of
New York.

                                       33
<PAGE>   40

                  "Swing  Loan  Note"  shall mean that  certain  Swing Loan Note
dated as of the Agreement Date, in the principal  amount of $10,000,000,  issued
by the Borrower to the Swing Loan Lender, substantially in the form of Exhibit Q
attached  hereto,  and any  amendments,  replacements,  extensions  or  renewals
thereof.

                  "Swing  Loan  Request"  shall  have the  meaning  set forth in
Section 2.15(a)(i).

                  "Syndication Agent" shall mean CSFB.

                  "TAS" shall mean Tower Asset Sub, Inc., a Delaware corporation
and a wholly owned Restricted Subsidiary of the Borrower.

                  "Taxes"  shall have the  meaning  set forth in Section  2.9(b)
hereof.

                  "Term Loans" shall mean, collectively, the Tranche A Loans and
the Tranche B Loans.

                  "Term  Notes" shall mean the Tranche A Notes and the Tranche B
Notes.

                  "Total Interest Coverage Ratio" shall mean, on any calculation
date, for the Borrower and the Designated Subsidiaries, on a consolidated basis,
the ratio of (a)  Annualized  EBITDA as at such date, to (b) cash Total Interest
Expense for the immediately preceding four (4) fiscal quarter period.

                  "Total Interest  Expense" shall mean, for any period,  the sum
of (a) Borrower Interest Expense, (b) the amount of any Restricted Payments made
by the  Borrower or any of the  Designated  Subsidiaries  to Holdco  during such
period for the purpose of making payments of interest or dividends in respect of
the  Holdco  Notes or any other  Permitted  High-Yield  Securities,  and (c) the
amount of any  Restricted  Payments made by the Borrower  during such period for
the  purpose  of making  payments  of  dividends  in  respect  of any  Permitted
High-Yield Securities of the Borrower.

                  "Tower" shall mean any communications  tower owned,  leased or
managed by the Borrower or any of the Designated Subsidiaries.

                  "Tower Assets" shall mean assets and  businesses  constituting
Tower  Sites,  Shared  Tenant  Infrastructure  Sites,  Towers or "build to suit"
businesses owned by the Borrower or any Designated  Subsidiary,  and any and all
Assets  relating  thereto  (including,  without  limitation,  tower  structures,
concrete  pads,  tower lighting and fences,  interests in real property  related
thereto, third party tenant leases and permits and documents related thereto).

                  "Tower   Operations"   shall  mean  the  ownership,   leasing,
management,   shared  tenant   infrastructure,   "build-out"  and   construction
businesses  of the  Borrower  and the  Designated  Subsidiaries  relating to the
Towers.

                  "Tower Parent Corp." shall mean Tower Parent Corp., a Delaware
corporation.

                  "Tower Site" shall mean each parcel of real  property,  owned,
leased or managed by the Borrower or any of the Designated Subsidiaries pursuant
to a Tower Site Lease Agreement or a Tower Site Management Agreement, on which

                                       34
<PAGE>   41

the Borrower or any of the Designated Subsidiaries owns, operates or maintains a
Tower.

                  "Tower Site Lease Agreement" shall mean each lease or sublease
for real property to which the Borrower or any of the Designated Subsidiaries is
a party pursuant to which the Borrower or such Designated  Subsidiary  leases or
subleases a Tower Site.

                  "Tower Site  Management  Agreement"  shall mean any  agreement
pursuant to which the  Borrower or any of the  Designated  Subsidiaries  has the
right to  substantially  control Tower Assets and the revenues  derived from the
rental or use thereof.

                  "Tower  Space  Lease   Agreement"  shall  mean  any  lease  or
sub-lease agreement to which the Borrower or any of the Designated  Subsidiaries
is a party pursuant to which the Borrower or such Designated  Subsidiary  leases
or  sub-leases  platform  space on Towers  and  space to a third  party on other
communications   sites  and  the  right  to  use  and/or  benefit  from  related
improvements.

                  "Tower Subsidiaries" shall mean,  collectively,  TAS, CTI, STI
and each other Restricted Subsidiary that owns or leases any Towers.

                  "Tranche A Commitment"  shall mean the several  obligations of
certain of the Lenders to advance the sum of up to  $500,000,000 to the Borrower
not later than the Tranche A Commitment  Termination  Date, in  accordance  with
their respective  Tranche A Commitment Ratios, and as reduced from time to time,
all pursuant to the terms hereof.

                  "Tranche A Commitment  Ratio" shall mean,  with respect to any
Lender, the ratio, expressed as a percentage, of (i) the Tranche A Commitment of
such Lender,  divided by (ii) the aggregate  Tranche A Commitments of all of the
Lenders.  As of the Agreement  Date,  the Tranche A Commitment of each Lender is
set forth on Schedule 1 to the Lender  Addendum  delivered  by such Lender under
the caption "Tranche A Commitment."

                  "Tranche A  Commitment  Reduction  Date"  shall mean the first
anniversary of the Agreement Date.

                  "Tranche A  Commitment  Termination  Date" shall mean the date
that is eighteen (18) months after the Agreement Date.

                  "Tranche  A  Loans"  shall  mean,  collectively,  the  amounts
advanced  by  certain  of the  Lenders  to the  Borrower  under  the  Tranche  A
Commitment,  not to exceed the amount of the Tranche A Commitment, and evidenced
by the Tranche A Notes.

                  "Tranche A Notes"  shall mean those  certain term notes in the
aggregate original principal amount of $500,000,000,  one issued by the Borrower
to each of the Lenders  issuing a Tranche A Commitment in  accordance  with each
such Lender's Tranche A Commitment  Ratio, each one substantially in the form of
Exhibit R  attached  hereto,  and any  extensions,  modifications,  renewals  or
replacements of or amendments to any of the foregoing.

                  "Tranche B Commitment"  shall mean the several  obligations of
certain of the Lenders to advance the sum of up to  $450,000,000 to the Borrower
on the Agreement Date in accordance with their  respective  Tranche B Commitment
Ratios, all pursuant to the terms hereof.

                                       35
<PAGE>   42

                  "Tranche B Commitment  Ratio" shall mean,  with respect to any
Lender, the ratio, expressed as a percentage, of (i) the Tranche B Commitment of
such Lender,  divided by (ii) the aggregate  Tranche B Commitments of all of the
Lenders.  As of the Agreement  Date,  the Tranche B Commitment of each Lender is
set forth on Schedule 1 to the Lender  Addendum  delivered  by such Lender under
the caption "Tranche B Commitment."

                  "Tranche  B  Loans"  shall  mean,  collectively,   the  amount
advanced  by  certain  of the  Lenders  to the  Borrower  under  the  Tranche  B
Commitment,  not to exceed the amount of the Tranche B Commitment  and evidenced
by the Tranche B Notes.

                  "Tranche B Notes"  shall mean those  certain term notes in the
aggregate original principal amount of $450,000,000,  one issued by the Borrower
to each of the Lenders  issuing a Tranche B Commitment in  accordance  with each
such Lender's Tranche B Commitment  Ratio, each one substantially in the form of
Exhibit S  attached  hereto,  and any  extensions,  modifications,  renewals  or
replacements of or amendments to any of the foregoing.

                  "Transferee"  shall  have  the  meaning  assigned  thereto  in
Section 13.5(e) hereof.

                  "Unfunded Commitment  Percentage" shall mean, as of the end of
any quarter, the percentage equivalent of a fraction,  the numerator of which is
equal to the sum of the  average  daily  amount  during  such  quarter,  without
duplication,  of (a) the  Revolving  Commitment,  less the  aggregate  principal
amount of Revolving Loans  outstanding,  less the L/C  Obligations  outstanding,
less the  aggregate  principal  amount of Swing Loans  outstanding,  and (b) the
Unfunded  Tranche A  Commitment,  and the  denominator  of which is equal to the
average  daily  amount  during  such  quarter  of the sum of (i)  the  Revolving
Commitment and (ii) (x) prior to the Tranche A Commitment  Termination Date, the
Tranche A Commitment,  and (y) after the Tranche A Commitment  Termination Date,
the principal amount of the Tranche A Loans outstanding.

                  "Unfunded   Commitments"   shall  mean,  as  of  any  date  of
determination,  the sum of (a) the  Revolving  Commitment,  less  the  aggregate
principal  amount  of  Revolving  Loans  outstanding,  less the L/C  Obligations
outstanding, less the aggregate principal amount of Swing Loans outstanding, (b)
(i) as of any date of  determination  from the  Agreement  Date to the Tranche A
Commitment  Termination  Date,  the  Tranche  A  Commitment  less the  aggregate
principal amount of Tranche A Loans made from the Agreement Date to such date of
determination,  or (ii) as of any date of  determination  after  the  Tranche  A
Commitment  Termination  Date,  zero  (0),  and (c) the  undrawn  amount  of all
Incremental Facility Commitments.

                  "Unfunded  Tranche A Commitment" shall mean, as of any date of
determination,  the  amount  of the  Tranche  A  Commitment  less the  aggregate
principal amount of the Tranche A Loans then outstanding.

                  "Uniform  Customs" shall mean the Uniform Customs and Practice
for  Documentary  Credits  (1993  Revision),  International  Chamber of Commerce
Publication  No.  500,  as the same may be amended,  supplemented  or  otherwise
modified from time to time and, if applicable,  the rules of the  "International
Standby Practices 1998" (ISP98), as the same may be revised from time to time.

                                       36
<PAGE>   43

                  "Unrestricted   Group"   shall   mean,    collectively,    the
Unrestricted Subsidiaries and the Unrestricted Investments.

                  "Unrestricted Investments" shall mean, collectively, direct or
indirect minority Investments by the Borrower in the Equity Interests of Persons
(other  than  Concourse   Communications,   any  Domestic   SpectraSite   Mexico
Investments, any Foreign SpectraSite Mexico Investments,  Foreign Investments or
Restricted  Investments)  and which  have been  designated  by the  Borrower  as
"Unrestricted Investments" pursuant to Section 6.17(a) hereof.

                  "Unrestricted  Subsidiaries" shall mean the direct or indirect
Subsidiaries of the Borrower (other than Concourse Communications,  any Domestic
SpectraSite Mexico  Subsidiaries,  any Foreign SpectraSite Mexico  Subsidiaries,
Foreign  Subsidiaries or Restricted  Subsidiaries) which have been designated in
writing by the  Borrower  as  "Unrestricted  Subsidiaries"  pursuant  to Section
6.17(a) hereof.

                  "Use of  Proceeds  Letter"  shall  mean  that  certain  Use of
Proceeds  Letter,  substantially  in the  form of  Exhibit  T  attached  hereto,
delivered  to the Credit  Parties on the  Agreement  Date  pursuant to Article 4
hereof.

                  "Voting Stock" shall mean all classes of Equity Interests of a
Person then outstanding and normally entitled,  without regard to the occurrence
of any contingency,  to vote in the election of directors,  managers, or trustee
thereof.

                  "WCAS" shall mean WCAS Capital Partners III, L.P., a Delaware
limited partnership.

                  "Welsh" shall mean,  collectively,  Welsh, Carson,  Anderson &
Stowe VIII, L.P., a Delaware  limited  partnership,  WCAS Information  Partners,
L.P.,  a  Delaware  limited  partnership,  WCAS  and  each of  their  respective
individual partners.

                  "Whitney" shall mean, J. H. Whitney Mezzanine Fund, L.P., a
Delaware limited partnership,  Whitney Equity Partners, L.P., a Delaware limited
partnership,  J. H.  Whitney  III,  L.P., a Delaware  limited  partnership,  and
Whitney Strategic Partners III, L.P., a Delaware limited partnership.

                  Each  definition  of an  agreement  in  this  Article  1 shall
include  such  instrument  or agreement as amended,  restated,  supplemented  or
otherwise  modified  from time to time,  and except where the context  otherwise
requires,  definitions  imparting the singular shall include the plural and vice
versa. Except where otherwise specifically restricted, reference to a party to a
Loan Document  includes that party and its successors  and assigns.  An Event of
Default shall "exist", "continue" or be "continuing" until such Event of Default
has been waived in writing in accordance  with Section  13.12 hereof.  All terms
used herein  which are defined in Article 9 of the  Uniform  Commercial  Code in
effect in the State of New York on the date  hereof and which are not  otherwise
defined  herein shall have the same meanings  herein as set forth  therein.  All
accounting  terms used herein without  definition shall be used as defined under
GAAP. All financial  calculations  hereunder shall,  unless otherwise stated, be
determined  for  the  Borrower  on a  consolidated  basis  with  the  Designated
Subsidiaries.

                                       37
<PAGE>   44

                                ARTICLE 2 - Loans

     Section  2.1 The  Loans.  Subject  to the terms and  conditions  of, and in
reliance upon the representations and warranties made in, this Agreement and the
other  Loan  Documents,  the  Lenders  have  extended  and agree,  severally  in
accordance  with their  respective  Commitment  Ratios and not jointly,  to make
Loans to the Borrower in an aggregate principal amount not to exceed One Billion
Three Hundred Million Dollars ($1,300,000,000).

               (a) The Revolving Loans. The Lenders that have issued a Revolving
Commitment  agree,  severally  in  accordance  with their  respective  Revolving
Commitment Ratios and not jointly,  upon the terms and subject to the conditions
of this  Agreement,  to lend and  re-lend  to the  Borrower,  on and  after  the
Agreement  Date, but prior to the Initial  Maturity Date,  amounts which, in the
aggregate,  do not exceed at any time the amount  equal to the result of (i) the
Available  Revolving   Commitment,   less  (ii)  the  aggregate  amount  of  L/C
Obligations then outstanding, less (iii) the aggregate principal amount of Swing
Loans then outstanding.  Subject to the terms and conditions hereof and prior to
the Initial Maturity Date, Advances under the Revolving Commitment may be repaid
and  reborrowed  from time to time on a revolving  basis or may be  continued or
converted pursuant to a Notice of Conversion/Continuation as provided in Section
2.2 hereof.

               (b)  The  Swing  Loans.  Subject  to  the  terms  and  conditions
hereinafter set forth, including,  without limitation,  Section 2.15 hereof, the
Swing Loan Lender, in its individual capacity, agrees to make Swing Loans to the
Borrower  from time to time on and after the  Agreement  Date,  but prior to the
Initial  Maturity  Date;  provided,  however,  that (i) the aggregate  principal
amount of Swing  Loans  outstanding  at any time shall not exceed the Swing Loan
Committed  Amount,  and (ii) the sum of (A) the  aggregate  principal  amount of
Revolving Loans  outstanding,  plus (B) the aggregate  amount of L/C Obligations
outstanding,  plus (C) the aggregate principal amount of Swing Loans outstanding
shall not at any time exceed the  Available  Revolving  Commitment.  Swing Loans
hereunder may be repaid and reborrowed  from time to time in accordance with the
provisions hereof.

               (c) The Tranche A Loans. The Lenders that have issued a Tranche A
Commitment,  severally in accordance with their respective  Tranche A Commitment
Ratios and not  jointly,  upon the terms and subject to the  conditions  of this
Agreement, agree to lend to the Borrower, on and after the Agreement Date and on
or prior to the Tranche A Commitment  Termination Date, in multiple Advances, an
aggregate  amount not to exceed the Tranche A  Commitment.  After the  Agreement
Date,  Advances  under the Tranche A  Commitment  may be  continued or converted
pursuant  to a Notice of  Conversion/Continuation  as  provided  in Section  2.2
hereof; provided, however, there shall be no increase in the aggregate principal
amount  outstanding under the Tranche A Commitment at any time after the Tranche
A Commitment Termination Date. Amounts repaid under the Tranche A Commitment may
not be reborrowed.

               (d) The Tranche B Loans. The Lenders that have issued a Tranche B
Commitment,  severally in accordance with their respective  Tranche B Commitment
Ratios and not  jointly,  upon the terms and subject to the  conditions  of this
Agreement,  agree to lend to the Borrower on the Agreement  Date an amount equal
to the  Tranche B  Commitment.  After the  Agreement  Date,  Advances  under the
Tranche B  Commitment  may be  continued  or  converted  pursuant to a Notice of
Conversion/Continuation  as provided in Section 2.2 hereof;  provided,  however,
there shall be no increase in the aggregate principal amount of the Tranche B

                                       38
<PAGE>   45

Loans outstanding at any time after the Agreement Date. Amounts repaid under the
Tranche B Commitment may not be reborrowed.

               (e) The Letters of Credit.  Each Issuing  Bank  agrees,  upon the
terms and subject to the  conditions  of this  Agreement,  to issue from time to
time, on and after the Agreement  Date, but prior to the Initial  Maturity Date,
for the  account of the  Borrower,  Letters of Credit to such  beneficiaries  as
shall be  designated  in writing by the Borrower to such Issuing Bank, up to the
limit of the Letter of Credit Committed Amount.

     Section 2.2 Manner of Borrowing and Disbursement.

          (a) Choice of Interest Rate,  Etc. Any Advance (i) under the Revolving
Commitment  (except with respect to Swing Loans and Advances in reimbursement of
amounts advanced to beneficiaries under Letters of Credit,  which Advances shall
in all  cases be Base  Rate  Advances  initially)  shall,  at the  option of the
Borrower, be made as a Base Rate Advance or a Eurodollar Advance, (ii) under the
Tranche A Commitment  shall,  at the option of the  Borrower,  be made as a Base
Rate Advance or a Eurodollar  Advance,  and (iii) under the Tranche B Commitment
shall,  at the  option  of the  Borrower,  be made as a Base Rate  Advance  or a
Eurodollar Advance;  provided,  however,  that (A) if the Borrower fails to give
the Administrative  Agent written notice specifying whether a Eurodollar Advance
is to be repaid,  continued  or  converted on a Payment  Date,  such  Eurodollar
Advance shall be converted to a Base Rate Advance on such Payment Date,  and (B)
the  Borrower  may not  select  a  Eurodollar  Advance  if,  at the time of such
selection,  a Default or Event of Default has  occurred and is  continuing.  All
Advances  of the Loans made on the  Agreement  Date shall bear  interest as Base
Rate Advances. Any notice given to the Administrative Agent in connection with a
requested Advance hereunder shall be given to the Administrative  Agent prior to
10:00 a.m.  (New York time) in order for such  Business  Day to count toward the
minimum number of Business Days required.

          (b) Base Rate Advances.

               (i) Initial and Subsequent Advances.  The Borrower shall give the
Administrative  Agent  in the  case of Base  Rate  Advances,  irrevocable  prior
written  notice not later  than  10:00 a.m.  (New York time) on the date of such
Advance in the form of a Request for  Advance,  or  telephonic  notice  followed
immediately  by a Request for Advance;  provided,  however,  that the Borrower's
failure to confirm any  telephonic  notice with a Request for Advance  shall not
invalidate any notice so given; and provided, further, that no such notice shall
be required in connection with the making of a Base Rate Advance to repay a draw
under a Letter of Credit.

               (ii)  Repayments  and  Conversions.  The Borrower may (A) upon at
least  one  (1)  Business  Days'   irrevocable   prior  written  notice  to  the
Administrative  Agent, repay or prepay a Base Rate Advance, or (B) upon at least
three (3) Business Days' irrevocable prior written notice to the  Administrative
Agent in the  form of a  Notice  of  Conversion/Continuation,  convert  all or a
portion of the principal amount thereof to one or more Eurodollar  Advances.  On
the date indicated by the Borrower, such Base Rate Advance shall be so repaid or
converted.

               (iii)  Miscellaneous.  Notwithstanding  any term or  provision of
this  Agreement  which may be construed to the contrary,  each Base Rate Advance
(except  any  Base  Rate  Advance  in   reimbursement  of  amounts  advanced  to

                                       39
<PAGE>   46

beneficiaries  under  Letters of Credit)  shall be in a  principal  amount of at
least $3,000,000 and in integral multiples of $100,000 in excess thereof, or the
remaining amount of the Revolving Commitment or the Tranche A Commitment, as the
case may be.

               (c) Eurodollar Advances.

                    (i) Initial and Subsequent Advances. The Borrower shall give
the Administrative  Agent in the case of Eurodollar  Advances at least three (3)
Business  Days'  irrevocable  prior written  notice in the form of a Request for
Advance,  or telephonic  notice  followed  immediately by a Request for Advance;
provided,  however, that the Borrower's failure to confirm any telephonic notice
with a  Request  for  Advance  shall not  invalidate  any  notice so given.  The
Borrower  shall  promptly  notify  the  Administrative  Agent  by  telephone  or
telecopy,  and shall immediately  confirm any such telephonic notice in writing,
of its selection of a Eurodollar  Advance and Eurodollar Advance Period for such
Advance;  provided,  however,  that the  Borrower's  failure to confirm any such
telephonic notice in writing shall not invalidate any notice so given.

                    (ii) Repayments,  Continuations  and  Conversions.  At least
three (3) Business Days prior to each Payment Date for a Eurodollar Advance, the
Borrower  shall give the  Administrative  Agent written  notice in the form of a
Notice of  Conversion/Continuation  specifying  whether all or a portion of such
Eurodollar  Advance  outstanding  on such Payment Date (A) is to be continued in
whole or in part as a new  Eurodollar  Advance,  in which case such notice shall
also specify the Eurodollar Advance Period for such new Eurodollar Advance,  (B)
is to be converted in whole or in part to a Base Rate  Advance,  or (C) is to be
repaid and not continued or converted.  Upon such Payment Date,  such Eurodollar
Advance  will,  subject to the  provisions  hereof,  be so repaid,  continued or
converted, as applicable. If the Borrower fails to give the Administrative Agent
written  notice  specifying  whether  a  Eurodollar  Advance  is to  be  repaid,
continued or converted  on a Payment  Date,  such  Eurodollar  Advance  shall be
converted to a Base Rate Advance on such Payment Date.

                    (iii)  Miscellaneous.  Notwithstanding any term or provision
of this  Agreement  which may be  construed  to the  contrary,  each  Eurodollar
Advance shall be in a principal  amount of at least  $5,000,000  and in integral
multiples  of $100,000  in excess  thereof,  and at no time shall the  aggregate
number of all Eurodollar Advances outstanding exceed twenty (20).

          (d) Notification of Lenders.  Upon receipt of a Request for Advance or
a notice from the Borrower with respect to any outstanding  Advance prior to the
Payment  Date  for  such  Advance,   or  a  request  by  the  Issuing  Bank  for
reimbursement under Section 2.14 hereof, or a request or a deemed request by the
Swing Loan Lender for  repayment of any  outstanding  Swing Loans under  Section
2.15(b) hereof,  the  Administrative  Agent shall promptly notify each Lender by
telephone  or telecopy of the contents  thereof and the amount of such  Lender's
portion of the Advance.  Each Lender  shall,  not later than 1:00 p.m. (New York
time) on the date of borrowing  specified in such notice,  make available to the
Administrative Agent at the Administrative Agent's Office, or at such account as
the  Administrative  Agent  shall  designate,  the amount of its  portion of any
Advance  which  represents  an  additional  borrowing  hereunder in  immediately
available funds.
                                       40
<PAGE>   47

               (e) Disbursement.

                         (i) Prior to, with respect to Base Rate Advances,  3:00
p.m. (New York time), and, with respect to Eurodollar  Advances,  2:00 p.m. (New
York time), in each case on the date of an Advance hereunder, the Administrative
Agent shall, subject to the satisfaction of any applicable  conditions set forth
in Article 4 hereof, disburse the amounts made available to it by the Lenders in
immediately available funds by (A) transferring the amounts so made available by
wire transfer  pursuant to the  Borrower's  instructions,  (B) in the case of an
Advance  representing  the  reimbursement of the Issuing Bank for a draw under a
Letter of Credit,  transferring  such amount to the Issuing  Bank, or (C) in the
absence of such instructions  referred to in clause (A) above and so long as the
provisions of clause (B) above do not apply to the requested Advance,  crediting
the amounts so made available to the account of the Borrower maintained with the
Administrative Agent.

                         (ii)  Unless  the   Administrative   Agent  shall  have
received notice from a Lender, prior to 1:00 p.m. (New York time) on the date of
any Advance that such Lender will not make available to the Administrative Agent
such Lender's  ratable  portion of such Advance,  the  Administrative  Agent may
assume that such  Lender,  has made or will make such  portion  available to the
Administrative  Agent on the date of such Advance and the  Administrative  Agent
may, in its sole discretion and in reliance upon such assumption, make available
to the  Borrower  on such date a  corresponding  amount.  If and to the extent a
Lender does not make such ratable portion available to the Administrative Agent,
such  Lender,  agrees  to  repay to the  Administrative  Agent  on  demand  such
corresponding  amount together with interest thereon, for each day from the date
such  amount is made  available  to the  Borrower  until the date such amount is
repaid to the Administrative Agent, at the Federal Funds Rate.

                         (iii) If such Lender shall repay to the  Administrative
Agent such  corresponding  amount,  such amount so repaid shall  constitute such
Lender's  portion of the applicable  Advance for purposes of this Agreement.  If
such  Lender  does not repay  such  corresponding  amount  immediately  upon the
Administrative  Agent's demand therefor,  the Administrative  Agent shall notify
the Borrower,  and the Borrower shall promptly pay such corresponding  amount to
the  Administrative  Agent,  together with interest thereon.  The failure of any
Lender to fund its portion of any Advance  shall not relieve any other Lender of
its obligation  hereunder to fund its  respective  portion of the Advance on the
date of such borrowing,  but no Lender shall be responsible for any such failure
of any other Lender.

                         (iv) In the event that,  at any time when the  Borrower
is not in Default,  a Lender for any reason fails or refuses to fund its portion
of an  Advance,  then,  until such time as such Lender has funded its portion of
such Advance,  or all other  Lenders have  received  payment in full (whether by
repayment or  prepayment)  of the  principal and interest due in respect of such
Advance,  such non-funding Lender shall not have the right (A) to vote regarding
any issue on which voting is required or advisable  under this  Agreement or any
other Loan  Document  and,  with respect to any such  Lender,  the amount of the
Revolving  Commitment and Term Loans,  as applicable,  or Loans,  as applicable,
held by such  Lender  shall  not be  counted  as  outstanding  for  purposes  of
determining  "Majority  Lenders"  hereunder,  and  (B) to  receive  payments  of
principal, interest or fees from the Borrower in respect of its unfunded portion
of  Advances.  Notwithstanding  the  foregoing,  within  sixty  (60) days of the
failure by any Lender to fund its portion of an  Advance,  so long as no Default
or Event of Default then exists, the Borrower may, in its discretion, provide a

                                       41
<PAGE>   48

replacement  lender or lenders for such non-funding  Lender,  which  replacement
lender or lenders will be subject to the approval of the Lead  Arrangers,  which
shall not be unreasonably  withheld,  and the Administrative  Agent, such Lender
and the Borrower shall take all necessary actions to transfer the rights, duties
and obligations of such non-funding Lender to such replacement lender or lenders
within such sixty (60) day period (including, without limitation, the payment in
full of all Obligations hereunder due to the non-funding Lender being replaced).

          (f) Automatic Payment.  Unless payment is otherwise timely made by the
Borrower,  the  becoming  due of any  amount  required  to be  paid  under  this
Agreement or any of the other Loan  Documents as  principal,  accrued  interest,
fees or other charges in respect of the Loans shall be deemed  irrevocably to be
a Request for Advance on the due date of, and in an aggregate amount required to
pay, such principal,  accrued interest,  fees or other charges, and the proceeds
of an Advance (i) under the Unfunded Tranche A Commitment,  or (ii) in the event
that the Tranche A Commitment is fully funded or is no longer  available,  under
the Available  Revolving  Commitment,  made pursuant thereto may be dispersed by
way of  direct  payment  of the  relevant  Obligation  and shall  bear  interest
initially as a Base Rate Advance. The Administrative Agent and the Lenders shall
have no obligation to the Borrower to honor any such deemed Request for Advance,
but may do so in their sole  discretion  and without regard to the existence of,
and without being deemed to have waived, any Default or Event of Default.

Section 2.3       Interest.

          (a) On Base Rate Advances. Interest on each Base Rate Advance shall be
computed  on the basis of a year of 365/366  days for the actual  number of days
elapsed and shall be payable  quarterly  in arrears on the last  Business Day of
each  calendar  quarter,  commencing  on March 31,  2001.  Interest on Base Rate
Advances  then  outstanding  shall  also be due and  payable  on the date of any
repayment  made on the Initial  Maturity  Date or the Final  Maturity  Date,  as
applicable.  Interest  shall  accrue and be payable on each Base Rate Advance at
the simple per annum interest rate equal to the sum of (A) the Base Rate and (B)
the Applicable Margin in effect from time to time and as more fully set forth in
Section 2.3(f) below.

          (b) On Eurodollar Advances.  Interest on each Eurodollar Advance shall
be computed on the basis of a 360-day year for the actual number of days elapsed
and shall be payable  in arrears  (i) on the  applicable  Payment  Date for such
Advance,  and (ii) if the Eurodollar  Advance Period for such Eurodollar Advance
exceeds three (3) months,  interest on such Eurodollar  Advance shall be due and
payable in  arrears  on every  three (3) month  anniversary  of such  Eurodollar
Advance.  Interest on Eurodollar Advances then outstanding shall also be due and
payable on the date of any repayment  made under Sections 2.5, 2.6 or 2.7 hereof
and on the Initial  Maturity Date or the Final  Maturity  Date,  as  applicable.
Interest  shall accrue and be payable on each  Eurodollar  Advance at a rate per
annum equal to the sum of (A) the Eurodollar  Rate applicable to such Eurodollar
Advance  and (B) the  Applicable  Margin in effect from time to time and as more
fully set forth in Section 2.3(f) below.

          (c)  Interest  if No Notice of  Selection  of  Interest  Rate.  If the
Borrower fails to give the  Administrative  Agent timely notice of the selection
of a  Eurodollar  Advance,  or if the  Administrative  Agent is unable to timely
determine a Eurodollar  Rate for any Advance,  the Base Rate shall apply to such
Advance.  If the Borrower fails to elect to continue any Eurodollar Advance then
outstanding prior to the Payment Date applicable thereto in

                                       42

<PAGE>   49
accordance with the provisions of Section 2.2 hereof,  the Base Rate shall apply
to such Advance commencing on and after such Payment Date.

          (d) Interest Upon Default. Immediately upon the occurrence of an Event
of  Default  under  Section  10.1(b),  (f) or  (g)  hereunder,  interest  on the
Obligations shall accrue at the Default Rate applicable thereto from the date of
such Event of Default.  Interest accruing at the Default Rate on the Obligations
shall be payable on demand and in any event on the Initial  Maturity Date or the
Final Maturity Date, as applicable, and shall accrue until the earliest to occur
of (A) waiver of the  applicable  Event of Default in  accordance  with  Section
13.12 hereof,  (B) agreement by the Majority  Lenders to rescind the charging of
interest at the Default  Rate,  or (C) payment in full of the  Obligations.  The
Lenders shall not be required to (x) accelerate the maturity of their Loans, (y)
terminate  their  Commitments,  or (z)  exercise  any other  rights or  remedies
available to them under the Loan Documents in order to charge interest hereunder
at the Default Rate.

          (e) Computation of Interest. In computing interest on any Advance, the
date of making the Advance  shall be included  and the date of payment  shall be
excluded; provided, however, that if an Advance is repaid on the date that it is
made, one (1) day's interest shall be due with respect to such Advance.

               (f)  Applicable  Margins for Base Rate  Advances  and  Eurodollar
Advances.

                    (i)  Advances  Under  the  Revolving  Commitment  or of  the
Tranche A Loans. With respect to any Advance under the Revolving Commitment,  or
any Advance of the Tranche A Loans,  the  Applicable  Margin shall be (A) on and
after the Agreement  Date to and including the  Adjustment  Date, (x) 2.75% with
respect to any  Eurodollar  Advance and (y) 1.50% with  respect to any Base Rate
Advance,  and (B) after the Adjustment Date, the interest rate margin based upon
the Borrower Leverage Ratio for the most recent fiscal quarter end, effective as
of the second (2nd) Business Day after the financial  statements  referred to in
Section 7.1 hereof are delivered by the Borrower to the Administrative Agent for
the fiscal quarter of the Borrower most recently ended, expressed as a per annum
rate of interest as follows:

<TABLE>
<S>                                     <C>                        <C>

  If the Borrower Leverage Ratio is:       Then the Base Rate         Then the Eurodollar
  ---------------------------------
                                                 Advance                    Advance
                                        Applicable Margin shall    Applicable Margin shall
                                        ------------------------   -----------------------
                                                   be:                        be:
                                                   --                         --

Greater than or equal to 5.00 to 1.00             1.50%                      2.75%

Greater than or equal 4.50 to 1.00                1.25%                      2.50%
but less than 5.00 to 1.00

Greater than or equal to 4.00 to 1.00             1.00%                      2.25%
but less than 4.50 to 1.00

Greater than or equal to 3.50 to 1.00             0.75%                      2.00%
but less than 4.00 to 1.00

Less than 3.50 to 1.00                            0.50%                      1.75%

</TABLE>

In the  event  that the  Borrower  fails to  timely  provide  (I) the  financial
statements  referred to above in accordance with the terms of Section 7.1 hereof
or (II) the Performance Certificate referred to in Section 7.3 hereof, and

                                       43
<PAGE>   50

without  prejudice to any additional rights under Section 2.3(d) or Section 10.2
hereof,  no  downward  adjustment  of the  Applicable  Margin in effect  for the
preceding quarter shall occur until the actual delivery of such statements,  and
from such failure and until such delivery,  the  Applicable  Margin shall be (x)
2.75% with  respect to each  Eurodollar  Advance,  and (y) 1.50% with respect to
each Base Rate Advance.

                    (ii)  Advances of the Tranche B Loans.  With  respect to any
Advance of the Tranche B Loans,  the  Applicable  Margin  shall be (A) 3.50% per
annum  with  respect  to any  Eurodollar  Advance  and (B) 2.25% per annum  with
respect to any Base Rate Advance.

          Section 2.4 Fees

               (a)  Commitment   Fees.  The  Borrower   agrees  to  pay  to  the
Administrative  Agent, for the benefit of each of the Lenders in accordance with
their respective  Revolving Commitment Ratios or Tranche A Commitment Ratios, as
applicable, a commitment fee on (i) the average daily amount during each quarter
ending during the period from the Agreement Date until the Initial Maturity Date
of (A) the  Revolving  Commitment,  less (B) the aggregate  principal  amount of
Revolving Loans outstanding,  less (C) the L/C Obligations outstanding, less (D)
the aggregate principal amount of Swing Loans outstanding, plus (ii) the average
daily  amount  during each  quarter  from the  Agreement  Date until the Initial
Maturity  Date  of  the  amount  available  to be  drawn  under  the  Tranche  A
Commitment,  at a rate of, (A) so long as the Unfunded Commitment  Percentage is
greater than or equal to sixty-six and  two-thirds  percent  (66-2/3%),  one and
three-eighths percent (1.375%) per annum, (B) so long as the Unfunded Commitment
Percentage  is  greater  than or equal to  thirty-three  and  one-third  percent
(33-1/3%) but less than sixty-six and two-thirds percent (66-2/3%),  one percent
(1.00%) per annum, and (C) so long as the Unfunded Commitment Percentage is less
than  thirty-three  and  one-third  percent  (33-1/3%),  one-half of one percent
(0.50%) per annum. Such commitment fees shall be computed on the basis of a year
of  365/366  days for the  actual  number  of days  elapsed,  shall  be  payable
quarterly  in  arrears  on the  last  Business  Day of  each  calendar  quarter,
commencing on the last day of the first full fiscal  quarter after the Agreement
Date, shall be fully earned when due, and shall be  non-refundable  when paid. A
final  payment of any  accrued and unpaid  commitment  fee shall also be due and
payable on the Initial Maturity Date.

               (b)  Letter  of Credit  Fee.  The  Borrower  agrees to pay to the
Administrative  Agent, for the benefit of the Lenders,  in accordance with their
respective  Revolving  Commitment  Ratios,  a letter of credit  fee equal to the
Applicable  Margin for Eurodollar  Advances  under the Revolving  Commitment per
annum  (computed  on the basis of a 360 day year for the  actual  number of days
elapsed),  of the stated  amount of each Letter of Credit  issued by the Issuing
Bank hereunder.  Such letter of credit fee shall be due and payable quarterly in
arrears on the last  Business  Day of each  calendar  quarter  during which such
Letter of Credit is outstanding and any accrued and unpaid letter of credit fees
shall also be due and  payable on the  Initial  Maturity  Date.  Such  letter of
credit fee shall be fully earned when due and  nonrefundable  when paid.  In the
event of any inconsistency  between the terms of this Agreement and the terms of
any letter of credit  reimbursement  agreements  or  indemnification  agreements
between  the  Borrower  and the Issuing  Bank with  respect to Letters of Credit
issued hereunder, the terms of this Agreement shall control.

                                       44
<PAGE>   51

               (c) Issuing Bank Fee. The Borrower  agrees to pay to each Issuing
Bank, for its own account,  a fee in the amount of such Issuing Bank's customary
fee with  respect to the  issuance  of a Letter of Credit on the face  amount of
each Letter of Credit issued by such Issuing Bank hereunder,  which fee shall be
due and payable quarterly in arrears commencing on the last Business Day of each
calendar  quarter in which such Letter of Credit is  outstanding.  The foregoing
fee shall be fully earned when due and nonrefundable  when paid. In the event of
any  inconsistency  between  the  terms of this  Agreement  and the terms of any
letter of credit reimbursement agreements or indemnification  agreements between
the Borrower  and any Issuing Bank with respect to the Letters of Credit  issued
by such Issuing Bank hereunder, the terms of this Agreement shall control.

               (d) Computation of Fees. In computing any fees payable under this
Section  2.4, the first day of the  applicable  period shall be included and the
date of payment shall be excluded.

          Section 2.5 Optional Prepayment/Reduction of Commitment.

               (a) Prepayment of Advances. The principal amount of any Base Rate
Advance under the Revolving Loan Commitment may be prepaid in full or in part at
any time, without penalty or premium,  upon not less than one (1) Business Days'
prior written notice to the  Administrative  Agent;  and the principal amount of
any Eurodollar  Advance under the Revolving Loan Commitment may be prepaid prior
to the applicable Payment Date,  without penalty or premium,  upon not less than
three (3)  Business  Days' prior  written  notice to the  Administrative  Agent,
provided that the Borrower  shall  reimburse the Lenders and the  Administrative
Agent, on demand, for any loss or out-of-pocket  expense incurred by any of them
in  connection  with such  prepayment  of  Eurodollar  Advances  as set forth in
Section  2.10  hereof.  Each  notice  of  prepayment  given  hereunder  shall be
irrevocable.  Upon receipt of any notice of prepayment, the Administrative Agent
shall  promptly  notify  each Lender of the  contents  thereof by  telephone  or
telecopy and of such Lender's portion of the prepayment.

               (b) Permanent Prepayment or Reduction.

                    (i) Terms of Prepayments or Reductions.  Optional  permanent
prepayments  of principal of the Term Loans,  and  permanent  reductions  of the
Revolving Commitment hereunder,  may be made at any time upon three (3) Business
Days' prior  irrevocable  written notice to the  Administrative  Agent,  without
penalty or premium,  provided that such  prepayments  or reductions  shall be in
minimum  amounts of $5,000,000 and integral  multiples of $1,000,000;  provided,
however,  that if the Borrower  prepays the Tranche B Loans in full on or before
the second (2nd)  anniversary of the Original  Closing Date, the Borrower hereby
agrees  to pay  to the  Administrative  Agent,  on  behalf  of  the  Lenders  in
accordance with their  respective  Tranche B Commitment  Ratios, a premium in an
amount  determined  by  multiplying  the  aggregate  amount  of  the  Tranche  B
Commitment  by  three-quarters  of one  percent  (0.75%)  with  respect  to such
prepayment made after the first (1st)  anniversary of the Original  Closing Date
but on or before the second  (2nd)  anniversary  of the Original  Closing  Date.
Notwithstanding the foregoing,  the Borrower shall not be required to pay such a
premium in the event that the  Tranche B Loans are  required  to be paid in full
pursuant to Section 2.6 hereof.

                    (ii)     Application     of    Payments    or    Reductions.

                                       45
<PAGE>   52

                         (A)  In  the  event  that  the  Borrower  shall  make a
prepayment  of the Term Loans on or before the  earlier of (I) the date on which
the  Tranche A  Commitment  shall have been fully  funded and (II) the Tranche A
Commitment  Termination  Date, the amount of such prepayment shall be applied to
permanently  reduce, on a pro rata basis, the Tranche A Commitment  (which,  for
purposes of this sentence,  shall include the aggregate  principal amount of the
Tranche A Loans then  outstanding),  the Tranche B Loans and, to the extent then
outstanding,  any Incremental Facility Loans which are term loans. To the extent
that the amount of any  prepayment  made hereunder is allocable to the Tranche A
Commitment  pursuant to the  preceding  sentence,  the  unfunded  portion of the
Tranche A Commitment shall be permanently  reduced by a like amount and the cash
amount of such prepayment  shall be applied to reduce,  on a pro rata basis, the
Tranche A Loans then  outstanding,  the Tranche B Loans then outstanding and any
Incremental  Facility Loans which are term loans then outstanding.  In the event
that the Borrower shall make a prepayment of the Term Loans after the earlier of
(A) the date on which the Tranche A Commitment  shall have been fully funded and
(B) the Tranche A Commitment Termination Date, such prepayment of the Term Loans
shall permanently  reduce, on a pro rata basis, the Tranche A Loans, the Tranche
B Loans and, to the extent then  outstanding,  any  Incremental  Facility  Loans
which are term loans. Each such reduction allocated to the Tranche A Loans shall
reduce, on a pro rata basis, the remaining  scheduled  installments of principal
due under the Tranche A Loans as set forth in Section  2.6(b)(ii)  hereof.  Each
such  reduction  allocated  to the Tranche B Loans shall  reduce,  on a pro rata
basis, the remaining scheduled installments of principal due under the Tranche B
Loans as set  forth  in  Section  2.6(c)  hereof.  Each  such  reduction  of the
Incremental  Facility  Loans  which are term loans  shall be  allocated  to such
Incremental  Facility  Loans,  on a pro rata basis,  to the remaining  scheduled
installments  of principal due in respect of such  Incremental  Facility  Loans.
Each prepayment hereunder of any Eurodollar Advances shall also be made together
with accrued interest on the amount so prepaid.

                         (B) As of the date of  cancellation  or  reduction  set
forth in any notice  thereof,  the  Revolving  Commitment  shall be  permanently
reduced to the amounts stated in the Borrower's  notice for all purposes herein,
and the Borrower shall pay to the  Administrative  Agent, for the benefit of the
Lenders,  the amount  necessary to reduce the principal  amount of the Revolving
Loans then  outstanding  to not more than the amount  equal to the result of (I)
the Available Revolving Commitment as so reduced, less (II) the aggregate amount
of L/C Obligations then outstanding,  less (III) the aggregate  principal amount
of Swing  Loans then  outstanding,  together  with the  accrued  interest on any
Eurodollar  Advances so prepaid.  To the extent  that any  Incremental  Facility
Loans  outstanding  as of the  date  of any  cancellation  or  reduction  of the
Revolving  Commitment  constitute  revolving  loans,  the  amount  stated in the
Borrower's notice of cancellation or reduction of the Revolving Commitment shall
be applied to reduce,  on a pro rata basis,  the  Revolving  Commitment  and the
Incremental  Facility Commitment  applicable to such Incremental Facility Loans,
and the Borrower shall pay to the  Administrative  Agent, for the benefit of the
Lenders,  the amount  necessary to reduce the principal  amount of the Revolving
Loans then  outstanding  to not more than the amount  equal to the result of (I)
the Available Revolving Commitment as so reduced, less (II) the aggregate amount
of L/C Obligations then outstanding,  less (III) the aggregate  principal amount
of Swing  Loans then  outstanding,  together  with the  accrued  interest on the
amount of any Eurodollar Advances so prepaid, and the amount necessary to reduce
the principal amount of the Incremental  Facility Loans then  outstanding  which
are revolving loans to not more than the amount of the Incremental Facility

                                       46
<PAGE>   53

Commitment applicable thereto as so reduced,  together with the accrued interest
on the amount of any Eurodollar Advances so prepaid.

                         (C) In connection  with any such  permanent  repayment,
the Borrower  shall  reimburse  the  Administrative  Agent and the  Lenders,  on
demand,  for  any  loss  or  out-of-pocket  expense  incurred  by any of them in
connection  with  such  repayment  of any  Eurodollar  Advances  as set forth in
Section  2.10.  Upon  receipt  of any notice of  prepayment  or  reduction,  the
Administrative  Agent shall promptly notify each Lender of the contents  thereof
by telephone or telecopy and of such Lender's  portion of the  prepayment or the
reduction,  as applicable.  Notwithstanding  the  foregoing,  the holders of the
Tranche B Loans shall have the right to decline any voluntary partial prepayment
of the  Tranche B Loans,  in which case the amount of such  prepayment  shall be
applied,  on a pro rata basis, to prepay the Tranche A Loans and the Incremental
Facility Loans which are term loans, if any, then  outstanding in the manner set
forth above,  and  thereafter,  on a pro rata basis,  to repay the amount of any
Revolving Loans then  outstanding  and any Incremental  Facility Loans which are
revolving loans then  outstanding,  in each case with a corresponding  permanent
reduction in the amount of the Commitments applicable to such Loans.

          Section 2.6 Repayment.

(a) Revolving  Commitment.  Commencing on September 30, 2003,  and at the end of
each  calendar   quarter   thereafter,   the  Revolving   Commitment   shall  be
automatically and permanently  reduced by an amount equal to the percentage (for
such quarter and year) as set forth below:

<TABLE>
<S>                               <C>                           <C>
                                                                    Annual Percentage of
                                     Percentage of Revolving        Revolving Commitment
                                  Commitment Outstanding as of        Outstanding as of
                                    September 30, 2003 to be      September 30, 2003 to be
        Quarters Ending               Reduced Each Quarter                 Reduced
     -------------------           ---------------------------   --------------------------

September 30, 2003 through                    2.50%                         5.00%
December 31, 2003

March 31, 2004 through December               5.00%                        20.00%
31, 2004

March 31, 2005 through December               6.25%                        25.00%
31, 2005

March 31, 2006 through December               6.25%                        25.00%
31, 2006

March 31, 2007 through June 30,              12.50%                        25.00%
2007

</TABLE>

As of the date of each reduction of the Revolving Commitment as set forth above,
the  Borrower  shall pay to the  Administrative  Agent,  for the  benefit of the
Lenders,  the amount  necessary to reduce the principal  amount of the Revolving
Loans then  outstanding  to not more than the amount  equal to the result of (I)
the Available Revolving  Commitment after giving effect to such reduction,  less
(II) the aggregate  amount of L/C Obligations then  outstanding,  less (III) the
aggregate  principal amount of Swing Loans then  outstanding,  together with the
accrued  interest on the amount so prepaid and the  commitment  fee set forth in
Section 2.4(a) accrued through the date of the reduction with respect to the

                                       47
<PAGE>   54

amount reduced.  Any unpaid  principal of and accrued  interest on the Revolving
Loans and any other outstanding Obligations under the Revolving Commitment shall
be due and payable in full on the Initial Maturity Date.

               (b) Tranche A Loans.

                    (i) Tranche A  Commitment  Reduction.  In the event that the
aggregate  principal  amount of Tranche A Loans  outstanding as of the Tranche A
Commitment  Reduction  Date  shall not be at least  fifty  percent  (50%) of the
amount of the  Tranche A  Commitment  as of the  Agreement  Date,  the Tranche A
Commitment  shall be  automatically  and  permanently  reduced on the  Tranche A
Commitment  Reduction  Date by an amount  equal to the  excess of (A) the amount
equal  to  fifty  percent  (50%)  of the  amount  of the  Tranche  A  Commitment
outstanding as of the Agreement Date, over (B) the aggregate principal amount of
Tranche A Loans then outstanding. In the event that any portion of the Tranche A
Commitment  shall  remain  unfunded as of the Tranche A  Commitment  Termination
Date, the Tranche A Commitment shall be automatically and permanently reduced on
the  Tranche  A  Commitment  Termination  Date by the  amount  of such  unfunded
portion.

                    (ii)   Amortization  of  Tranche  A  Loans.   Commencing  on
September 30, 2003,  and at the end of each  calendar  quarter  thereafter,  the
outstanding  principal  balance of the Tranche A Loans then outstanding shall be
repaid by an amount  equal to the  percentage  (for such  quarter  and year) set
forth below:

<TABLE>
<S>                                 <C>                           <C>
                                     Percentage of Tranche A        Annual Percentage of
                                     Loans Outstanding as of           Tranche A Loans
                                    September 30, 2003 to be          Outstanding as of
        Quarters Ending               Reduced Each Quarter        September 30, 2003 to be
        ---------------               --------------------
                                                                           Reduced

September 30, 2003 through                    2.50%                         5.00%
December 31, 2003

March 31, 2004 through December               5.00%                        20.00%
31, 2004

March 31, 2005 through December               6.25%                        25.00%
31, 2005

March 31, 2006 through December               6.25%                        25.00%
31, 2006

March 31, 2007 through June 30,              12.50%                        25.00%
2007

</TABLE>

Additionally,  the Tranche A Loans shall be repaid as may be required by Section
2.7 hereof.  Any unpaid  principal  and  interest of the Tranche A Loans and any
other  outstanding  Obligations  under the Tranche A Commitment shall be due and
payable in full on the Initial Maturity Date.

               (c) Tranche B Loans. Commencing on September 30, 2003, and at the
end of each calendar quarter  thereafter,  the outstanding  principal balance of
the Tranche B Loans then outstanding shall be repaid as set forth below:

                                       48
<PAGE>   55
<TABLE>
<S>                               <C>                             <C>

                                                                    Annual Percentage of
                                  Percentage of Tranche B Loans        Tranche B Loans
                                   Outstanding as of September        Outstanding as of
        Quarters Ending           30, 2003 to be Reduced Each     September 30, 2003 to be
        ---------------              -------------------------
                                             Quarter                       Reduced

September 30, 2003 through                    0.25%                         0.50%
December 31, 2003

March 31, 2004 through December               0.25%                         1.00%
31, 2006

March 31, 2007                                0.25%                          ---

June 30, 2007                                 0.25%                          ---

September 30, 2007                           48.00%                          ---

December 31, 2007                            48.00%                          ---
</TABLE>

Additionally,  the Tranche B Loans shall be repaid as may be required by Section
2.7 hereof.  Any unpaid  principal  and  interest of the Tranche B Loans and any
other  outstanding  Obligations  shall be due and  payable  in full on the Final
Maturity Date.

               (d)  Letter of Credit  Advances  and Swing  Loans.  All Base Rate
Advances  made pursuant to draws under the Letters of Credit and all Swing Loans
shall be deemed to be Advances  under the Revolving  Commitment and shall be due
and payable on the Initial Maturity Date.

               (e) Incremental Facility Loans. Any unpaid principal and interest
of the Incremental  Facility Loans and any other  outstanding  Obligations under
any of the Incremental  Facility Commitments shall be due and payable in full on
the Incremental Facility Maturity Date applicable thereto.

          Section  2.7  Mandatory  Repayments.  In  addition  to the  repayments
provided for in Section 2.6 hereof,  the Borrower shall, if required pursuant to
this Section 2.7, prepay the Loans, without any obligation to pay any prepayment
premium otherwise due, as follows:

               (a) Excess Cash Flow.  Commencing with respect to the fiscal year
of the Borrower  ended  December 31, 2003,  and with respect to each fiscal year
thereafter  during the term of this Agreement,  on or prior to April 15th of the
immediately  succeeding fiscal year, the Borrower shall make a prepayment of the
outstanding  principal  amount of the Loans in an amount equal to fifty  percent
(50%) of Excess Cash Flow for such fiscal year; provided,  however, that, in the
event that the Borrower  shall have  maintained a Borrower  Leverage  Ratio less
than  or  equal  to 3.00 to 1.00  for the two (2)  consecutive  fiscal  quarters
immediately  preceding  the date on which  any  prepayment  of the  Loans  would
otherwise be due under this Section  2.7(a) for which the  financial  statements
referred  to in Section 7.1 hereof have been  delivered  by the  Borrower to the
Administrative Agent, the Borrower shall not be required to make such prepayment
of the Loans. The amount of any prepayment made by the Borrower pursuant to this
Section  2.7(a)  shall be  applied  to prepay  the Loans as set forth in Section
2.7(e) below.

                                       49
<PAGE>   56

               (b) Disposition of Assets.

                    (i) If, after the Agreement Date, the Borrower or any of the
Designated Subsidiaries shall sell, transfer or otherwise dispose of (including,
without limitation, by way of condemnation or casualty) any Assets with Net Cash
Proceeds  in excess of  $10,000,000  in the  aggregate  during  the term of this
Agreement  (other than (A) the sale of obsolete  equipment  (other than Towers),
(B) the sale of  inventory in the  ordinary  course of  business,  (C) the sale,
transfer  or other  disposition  of Assets  that are  replaced  by  property  of
substantially equivalent value in the ordinary course of business, (D) the sale,
transfer  or other  disposition  of any  Equity  Interests  in any  Unrestricted
Subsidiary or Unrestricted  Investment,  (E) the lease of space on Towers in the
ordinary  course of business,  and (F) if consummated  within one (1) year after
the Agreement  Date,  the sale of the Broadcast  Services  Business) one hundred
percent  (100%)  of the Net  Cash  Proceeds  received  by the  Borrower  or such
Designated  Subsidiary from such Sales Transaction shall be applied, on the date
of receipt thereof by the Borrower or such Designated Subsidiary,  to prepay the
Loans as set forth in Section  2.7(e)  below;  provided,  however,  that, at the
Borrower's  election,  so long as no Default or Event of Default  then exists or
would be caused thereby, up to $20,000,000 of such Net Cash Proceeds received by
the Borrower or any Designated  Subsidiary in the aggregate  during any year may
be used by the Borrower or such  Restricted  Subsidiary to purchase or construct
one or more  Towers or  otherwise  to invest in capital  assets,  the  aggregate
Purchase  Price of which does not exceed such Net Cash  Proceeds  (or the sum of
such  Net  Cash  Proceeds  plus  amounts   otherwise   available  for  Permitted
Acquisitions),  so long as the Borrower or such Designated Subsidiary shall have
(A) entered into a definitive  contract  for purchase or  construction  no later
than six (6)  months  from the date of such sale or other  disposition,  and (B)
concluded such purchase or construction  within twelve (12) months from the date
of such sale or other disposition.

                    (ii) In the event the Borrower  elects to exercise its right
to reinvest Net Cash Proceeds  under Section  2.7(b)(i),  the Borrower  shall so
notify the  Administrative  Agent not less than five (5) Business  Days prior to
the proposed date of the closing of the sale or other  disposition of Assets and
shall, upon its or any Designated  Subsidiary's receipt of any Net Cash Proceeds
with respect to such sale or other  disposition  of Assets,  remit such Net Cash
Proceeds to the Administrative Agent to reduce the outstanding principal balance
of the  Revolving  Loans (but not the Term Loans nor the amount of the Revolving
Commitment).  Any  amount  in  excess  of the then  outstanding  balance  of the
Revolving Loans may be retained by the Borrower.  The Borrower shall  consummate
the Acquisition of the Towers or other capital assets not later than twelve (12)
months after the date of the applicable  Sales  Transaction.  To the extent that
the  Borrower  shall not have  consummated  any such  purchase as of twelve (12)
months after the date of such Sales Transaction (for whatever reason,  including
the occurrence of a Default or Event of Default hereunder), or the cash Purchase
Price  of  such  purchase  shall  be less  than  the Net  Cash  Proceeds  of the
applicable Sales  Transaction,  the Borrower shall apply such Net Cash Proceeds,
or the amount of such Net Cash  Proceeds  remaining  after giving  effect to any
purchases made during the twelve (12) month  reinvestment  period, to prepay the
Loans as set forth in Section 2.7(e) below.

                    (iii)  If  the   Borrower  or  the   applicable   Designated
Subsidiary or  Designated  Subsidiaries  shall sell,  transfer or dispose of the
Broadcast  Services  Business for Net Cash Proceeds of $100,000,000 or less in a
single transaction or a series of related  transactions which are consummated on
or before the date which is one year after the Agreement Date, the Borrower may,
so long as no  Default  or Event  of  Default  then  exists  or would be  caused
thereby, elect to reinvest such Net Cash Proceeds received by the Borrower or

                                       50
<PAGE>   57

any  Designated  Subsidiary  to  purchase  or  construct  one or more  Towers or
otherwise  invest in  assets,  the  aggregate  Purchase  Price of which does not
exceed such Net Cash Proceeds (or the sum of such Net Cash Proceeds plus amounts
otherwise available for Permitted Acquisitions), so long as the Borrower or such
Designated  Subsidiary  shall have (A) entered  into a  definitive  contract for
purchase or construction no later than six (6) months from the date of such sale
or other  disposition of Assets and (B) concluded such purchase or  construction
within  twelve (12) months  from the date of such sale or other  disposition  of
Assets.  If the Net Cash Proceeds from the sale,  transfer or disposition of the
Broadcast  Services Business exceeds  $100,000,000 in a single  transaction or a
series of related transactions which are consummated on or before the date which
is one year after the Agreement  Date, one hundred percent (100%) of such excess
Net Cash Proceeds over $100,000,000  received by the Borrower or such Designated
Subsidiary from such transaction or series of transactions shall be applied,  on
the date of receipt  thereof by the Borrower or such Designated  Subsidiary,  to
prepay the Loans as set forth in Section 2.7(e) below.

                    (c) Debt  Issuance.  If, after the  Agreement  Date,  Holdco
shall conduct any Eligible Debt Offering,  and the Borrower  Leverage Ratio on a
pro forma basis after giving  effect to such  Eligible  Debt  Offering  shall be
greater than 4.50 to 1.00, the Borrower  shall apply,  on the date of receipt of
the Net Cash Proceeds of such Eligible Debt Offering by Holdco,  an amount of up
to one  hundred  percent  (100%)  of the Net Cash  Proceeds  contributed  to the
Borrower or any of the  Designated  Subsidiaries  with respect to such  Eligible
Debt Offering, to prepay the Loans as set forth in Section 2.7(e) hereof, to the
extent  necessary to cause the Borrower  Leverage Ratio to be less than or equal
to 4.50 to 1.00 after  giving  effect to such  Eligible  Debt  Offering and such
prepayment.

                    (d) Termination of SBC Transaction.  If, after the Agreement
Date,  Holdco shall receive any amounts from SBC Wireless in connection with the
termination of the SBC Lease Documents  pursuant to Section 14.1 (or any similar
provision) of the SBC  Agreement to Sublease,  Holdco shall  contribute,  on the
date of its  receipt  thereof but in any event  within  twenty (20) days of such
termination, one hundred percent (100%) of such amounts as New Affiliated Equity
to the Borrower, and the Borrower shall apply one hundred percent (100%) of such
amounts to prepay the Loans as set forth in Section 2.7(e) hereof.

                    (e) Application of Payments.  Except as otherwise  permitted
in Section  2.7(b)  hereof,  the amount of any  prepayment  required  to be made
pursuant to this Section 2.7 shall be applied as follows: (i) first, (A) if such
prepayment is made on or before the earlier of (I) the date on which the Tranche
A  Commitment  shall have been fully  funded and (II) the  Tranche A  Commitment
Termination  Date, to  permanently  reduce,  on a pro rata basis,  the Tranche A
Commitment (including the aggregate principal amount of the Tranche A Loans then
outstanding),  the outstanding  principal  amount of the Tranche B Loans and, to
the extent then outstanding, the outstanding principal amount of any Incremental
Facility Loans which are term loans,  and (B) if such  prepayment is made at any
time  thereafter,  to permanently  reduce,  on a pro rata basis, the outstanding
principal  amount of the Tranche A Loans, the Tranche B Loans and, to the extent
then outstanding,  any Incremental  Facility Loans which are term loans, in each
case with the amount  allocated to the Tranche A Loans being  applied to reduce,
on a pro rata basis, the remaining scheduled installments of principal due under
the Tranche A Loans as set forth in Section  2.6(b)(ii)  hereof,  and the amount
allocated to the Tranche B Loans being  applied to reduce,  on a pro rata basis,
the remaining scheduled  installments of principal due under the Tranche B Loans
as set forth in Section 2.6(c) hereof, and the amount allocated to the

                                       51
<PAGE>   58

Incremental  Facility  Loans being applied to reduce,  on a pro rata basis,  the
remaining  scheduled   installments  of  principal  due  thereunder;   and  (ii)
thereafter,  to prepay, on a pro rata basis, the outstanding principal amount of
the Revolving Loans, with a corresponding  permanent  reduction in the amount of
the Revolving  Commitment and, to the extent that any Incremental Facility Loans
which are revolving loans are then outstanding, the outstanding principal amount
of such Incremental Facility Loans, with a corresponding  permanent reduction in
the amount of the Incremental Facility Commitment  applicable thereto;  provided
however,  that if an Event of Default has occurred and is continuing at the time
of any  prepayment  required to be made pursuant to this Section 2.7, the amount
of such  prepayment  shall be applied to prepay,  on a pro rata basis,  the Term
Loans,  the Revolving  Loans and any  Incremental  Facility Loans. To the extent
that the  amount  of any  prepayment  made  pursuant  to  clause  (i)(A)  of the
preceding  sentence is  allocable  to the  Tranche A  Commitment,  the  unfunded
portion  of the  Tranche A  Commitment  shall be  permanently  reduced by a like
amount and the cash amount of such prepayment  shall be applied to reduce,  on a
pro rata basis, the Tranche A Loans then  outstanding,  the Tranche B Loans then
outstanding  and any  Incremental  Facility  Loans  which  are term  loans  then
outstanding. Accrued interest on the principal amount of each Eurodollar Advance
of the Term Loans and the Incremental  Facility Loans which are term loans being
prepaid, and accrued interest on the principal amount of each Eurodollar Advance
of the Tranche A  Commitment,  the  Revolving  Commitment  and the amount of any
Incremental  Facility Commitment  applicable to Incremental Facility Loans which
are revolving  loans being reduced,  pursuant to this Section 2.7 to the date of
such  prepayment or reduction  shall be paid by the Borrower  concurrently  with
such principal prepayment or commitment reduction, as applicable.  In connection
with any  mandatory  repayment  due under this Section  2.7, the Borrower  shall
reimburse the Administrative  Agent and the Lenders,  on demand, for any loss or
out-of-pocket  expense incurred by any of them in connection with such repayment
of any  Eurodollar  Advances as set forth in Section 2.10.  Notwithstanding  the
foregoing,  the  holders of the  Tranche B Loans shall have the right to decline
any  mandatory  partial  prepayment  of the  Tranche B Loans,  in which case the
amount of such prepayment  shall be applied,  on a pro rata basis, to prepay the
Tranche A Loans and the Incremental Facility Loans which are term loans, if any,
then  outstanding in the manner set forth above,  and thereafter,  on a pro rata
basis,  to reduce  permanently  the  Revolving  Commitment  and the  Incremental
Facility Commitment applicable to Incremental Facility Loans which are revolving
loans in the manner set forth above.

          Section 2.8 Notes; Loan Accounts.

                    (a) The Loans  shall be  repayable  in  accordance  with the
terms and provisions set forth herein,  and shall be evidenced by the Notes. One
Revolving Note, one Tranche A Note and one Tranche B Note shall be issued by the
Borrower to the order of each Lender in accordance  with its  Commitment  Ratios
with respect to such Loans. The Swing Loan Note shall be payable to the order of
the Swing  Loan  Lender in the  amount of the Swing Loan  Committed  Amount.  If
applicable, one Incremental Facility Note shall be issued by the Borrower to the
order of each Incremental  Facility Lender in accordance with its pro rata share
of the  Incremental  Facility  Commitments.  Each  Note  shall be  issued by the
Borrower to the order of a Lender or the Swing Loan Lender,  as the case may be,
and shall be duly executed and delivered by one or more  Authorized  Signatories
of the Borrower.

                    (b) Each  Lender may open and  maintain  on its books in the
name of the Borrower a loan account with respect to such Lender's portion of the
Loans and interest thereon. Each Lender which opens such a loan account shall

                                       52
<PAGE>   59

debit such loan account for the principal  amount of its portion of each Advance
made and accrued  interest  thereon and shall  credit such loan account for each
payment on account of  principal  of or interest on its Loans.  The records of a
Lender with  respect to the loan account  maintained  by it shall be prima facie
evidence  of the Loans of such  Lender and  accrued  interest  thereon,  but the
failure of any Lender to maintain such records or to make any such notations, or
any  error or  mistake  in such  notations,  shall  not  affect  the  Borrower's
repayment obligations with respect to such Loans.

          Section 2.9 Manner of Payment

                    (a) Each payment  (including any prepayment) by the Borrower
on account of the principal of or interest on the Loans, commitment fees, letter
of credit fees and any other amount owed to any of the Credit Parties under this
Agreement,  any fee  letters or the Notes shall be made not later than 2:00 p.m.
(New York time) on the date  specified for payment  under this  Agreement to the
Administrative  Agent at the  Administrative  Agent's Office, for the account of
the applicable  Credit Party,  in Dollars in immediately  available  funds.  Any
payment  received by the  Administrative  Agent after 2:00 p.m.  (New York time)
shall, solely for the purpose of calculating interest, be deemed received on the
next Business Day. Receipt by the Administrative  Agent of any payment hereunder
at or prior to 2:00 p.m.  (New York time) on any Business Day shall be deemed to
constitute  receipt  on such  Business  Day.  In the case of a  payment  for the
account  of  a  Lender,  the  Administrative   Agent  will  promptly  thereafter
distribute  the  amount  so  received  in  like  funds  to such  Lender.  If the
Administrative  Agent shall not have  received  any payment from the Borrower as
and when due, the  Administrative  Agent will promptly notify the Credit Parties
accordingly.

                    (b) The Borrower agrees to pay principal, interest, fees and
all other Obligations due hereunder,  under any fee letters, under the Notes, or
under the other Loan Documents  without set-off or counterclaim or any deduction
whatsoever  (including,  without  limitation,  any deduction or withholding  for
present or future  income,  excise,  stamp or  franchise  taxes and other taxes,
fees, duties,  withholdings or other charges of any nature whatsoever imposed by
any taxing  authority,  excluding,  however,  taxes  attributable  to any Credit
Party's  failure to comply with the  requirements  of Section  2.13(b) (but only
with  respect  to  payments  to  be  made  to  such  Credit  Party),  franchise,
withholding,  branch or other similar taxes,  duties, fees or charges imposed on
or measured by any Credit  Party's  net income or  receipts  (such  non-excluded
items being called "Taxes")).

                    (c) Prior to the  acceleration  of the Loans  under  Section
10.2 hereof or the Final  Maturity  Date (or,  if  applicable,  the  Incremental
Facility  Maturity Date),  and other than with respect to payments made pursuant
to Section 2.5 or Section 2.7 hereof (which  shall,  in each case, be applied as
set forth therein),  if some but less than all amounts due from the Borrower are
received by the Administrative  Agent, the Administrative Agent shall distribute
such  amounts in the  following  order of  priority to the Lenders on a pro rata
basis:  (i) FIRST,  to the payment of any fees,  costs or expenses  then due and
payable to any of the Credit Parties hereunder or under any other Loan Document;
(ii) SECOND, to the payment of interest then due and payable on the Loans; (iii)
THIRD,  on a pro rata basis, to the payment of principal then due and payable on
the Term Loans and any  Incremental  Facility  Loans which are term loans;  (iv)
FOURTH, on a pro rata basis, to the payment of principal then due and payable on
the  Revolving  Loans and any  Incremental  Facility  Loans which are  revolving
loans, together with the principal amount of the Swing Loans; and (v) FIFTH, to

                                       53
<PAGE>   60

the payment of all other  amounts  not  otherwise  referred  to in this  Section
2.9(c) then due and payable to the Credit  Parties  hereunder or under any other
Loan Document.

                    (d) Subject to any contrary  provisions in the definition of
Eurodollar  Advance  Period,  if any payment under this  Agreement or any of the
other Loan  Documents  is  specified to be made on a day which is not a Business
Day, it shall be made on the next Business Day, and such extension of time shall
in such case be included in computing  interest and fees,  if any, in connection
with such payment. Section 2.10 Reimbursement

                    (a) Whenever any Lender shall sustain or incur any losses or
out-of-pocket  expenses in connection with (i) failure by the Borrower to borrow
any  Eurodollar  Advance after having given notice of its intention to borrow in
accordance with Section 2.2 hereof (whether by reason of the Borrower's election
not to  proceed or the  non-fulfillment  of any of the  conditions  set forth in
Article 4), (ii)  prepayment of any  Eurodollar  Advance in whole or in part for
any reason,  or (iii) failure by the Borrower to prepay any  Eurodollar  Advance
after giving notice of its intention to prepay such Advance, the Borrower agrees
to pay to such Lender,  upon demand,  an amount  sufficient to  compensate  such
Lender  for all such  losses and  reasonable  out-of-pocket  expenses  resulting
therefrom.  Such Lender's good faith  determination of the amount of such losses
or  out-of-pocket   expenses,  as  set  forth  in  writing  and  accompanied  by
calculations in reasonable detail  demonstrating the basis for its demand, which
shall be delivered to the Borrower by the Administrative Agent on behalf of such
Lender, shall be presumptively correct.

                    (b)  Expenses  subject  to  reimbursement   hereunder  shall
include, without limiting the generality of the foregoing,  expenses incurred by
any Lender or any participant of such Lender  permitted  hereunder in connection
with the  re-employment of funds prepaid,  repaid,  not borrowed or paid, as the
case may be, and the amount of the expenses subject to  reimbursement  hereunder
shall be the excess, if any, of (i) the interest or other cost to such Lender of
the deposit or other source of funding used to make any such Eurodollar  Advance
for the  remainder  of its  Eurodollar  Advance  Period,  over (ii) the interest
earned  (or  to  be  earned)  by  such  Lender  upon  the  re-lending  or  other
re-deployment of the amount of such Eurodollar  Advance for the remainder of its
putative Eurodollar Advance Period.

          Section 2.11 Pro Rata Treatment.

                    (a)  Advances.  Each  Advance  of any of the Loans  from the
Lenders  shall  be made pro rata on the  basis  of their  respective  Commitment
Ratios.

                    (b) Payments  Prior to  Declaration  of an Event of Default.
Except as provided in Section  2.2(e)(iv),  prior to the declaration of an Event
of Default by the  Administrative  Agent on behalf of the Lenders  under Section
10.2 hereof,  each payment and  prepayment  of principal of the Loans,  and each
payment of interest  on the Loans,  shall be made to the Lenders pro rata on the
basis of their  respective  Commitment  Ratios.  If any Lender  shall obtain any
payment (whether  involuntary,  through the exercise of any right of set-off, or
otherwise)  on account of the Loans made by it in excess of its ratable share of
the Loans under its  Commitment  Ratio with respect  thereto,  such Lender shall
forthwith purchase from the other Lenders such participations in the applicable

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<PAGE>   61

Loans  made by them as shall be  necessary  to cause such  purchasing  Lender to
share the  excess  payment  ratably  with each of the other  Lenders;  provided,
however,  that  if all or any  portion  of such  excess  payment  is  thereafter
recovered from such purchasing  Lender,  such purchase from each Lender shall be
rescinded,  and each  such  Lender  shall  repay to the  purchasing  Lender  the
purchase  price to the extent of such  recovery.  The  Borrower  agrees that any
Lender so  purchasing  a  participation  from  another  Lender  pursuant to this
Section  2.11(b) may, to the fullest extent  permitted by law,  exercise all its
rights  of  payment  (including  the  right of  set-off)  with  respect  to such
participation  as  fully  as if such  Lender  were the  direct  creditor  of the
Borrower in the amount of such  participation.  The  provisions  of this Section
2.11(b) set forth the rights of the Lenders with respect to payment, and are not
enforceable for the benefit of the Borrower.

                    (c)  Payments  Subsequent  to  Declaration  of an  Event  of
Default.   Subsequent  to  the  declaration  of  an  Event  of  Default  by  the
Administrative  Agent on  behalf  of the  Lenders  under  Section  10.2  hereof,
payments  and  prepayments  made  to any of the  Credit  Parties,  or  otherwise
received  by any of the Credit  Parties,  shall be  distributed  as  provided in
Section 10.3 hereof.

Section 2.12 Capital  Adequacy.  If any Lender shall have reasonably  determined
that the adoption (after the Agreement Date) of any Applicable Law regarding the
capital adequacy of banks or bank holding companies, or any change in Applicable
Law after the  Agreement  Date or any  change  after the  Agreement  Date in the
interpretation or administration thereof by any governmental authority,  central
bank or comparable  agency  charged with the  interpretation  or  administration
thereof, or compliance by such Lender with any directive issued or adopted after
the date hereof regarding  capital adequacy  (whether or not having the force of
law) of any such governmental  authority,  central bank or comparable agency, in
each case first  promulgated  after the  Agreement  Date,  has or would have the
effect of reducing the rate of return on such Lender's  capital as a consequence
of its obligations  hereunder to a level below that which it could have achieved
but for such  adoption,  change or compliance  (taking into  consideration  such
Lender's  policies  with  respect to capital  adequacy  immediately  before such
adoption, change or compliance and assuming that such Lender's capital was fully
utilized prior to such adoption,  change or compliance) by an amount  reasonably
deemed by such Lender to be material, then such Lender shall promptly notify the
Borrower of such  adoption,  compliance,  or change.  Within  sixty (60) days of
written  notice by such  Lender,  the Borrower  shall,  in its  discretion,  (i)
provide a  replacement  lender or lenders  for such  Lender,  which  replacement
lender or lenders will be subject to the approval of the  Administrative  Agent,
which, so long as no Default or Event of Default shall then exist,  shall not be
unreasonably  withheld,  and  the  Administrative  Agent,  such  Lender  and the
Borrower  shall take all  necessary  actions to transfer the rights,  duties and
obligations  of such Lender to such  replacement  lender or lenders  within such
sixty (60) day period (including, without limitation, the payment in full of all
Obligations  hereunder due to the Lender being  replaced),  or (ii)  thereafter,
from time to time upon demand by such  Lender,  promptly pay to such Lender such
additional  amounts as shall be sufficient  to  compensate  such Lender for such
reduced return,  together with interest on such amount from the fourth (4th) day
after the date of demand until payment in full thereof at the Base Rate plus the
Applicable  Margin  in  effect  for  Base  Rate  Advances  under  the  Revolving
Commitment;  provided, however, that notwithstanding the foregoing, the Borrower
shall have no obligation to provide any such  replacement  bank or make any such
payment  in the  event  that  the  first  such  demand  in  respect  of any such
regulatory change,  request or directive  regarding capital adequacy was sent by
such Lender more than ninety (90) days after it became aware of the

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<PAGE>   62

applicability of such regulatory change, request or directive to the Loans. Such
Lender will designate a different  lending office if such designation will avoid
the need for,  or reduce the amount of, such  compensation  and will not, in the
judgment of such Lender, be otherwise materially disadvantageous to such Lender.
A certificate  of such Lender setting forth the amount to be paid to such Lender
by the  Borrower  as a result of any event  referred  to in this  paragraph  and
supporting  calculations  in  reasonable  detail  shall  be  conclusive,  absent
manifest error.

Section 2.13      Taxes.

                    (a) If the Borrower  shall be required by Applicable  Law to
deduct any Taxes from or in respect of any amounts payable to the Administrative
Agent or any other  Credit  Party  hereunder  or under any Note,  (i)  except as
otherwise  provided in this  Section  2.13,  the sum payable  shall be increased
("Additional   Amounts")  as  necessary  so  that,  after  making  all  required
deductions (including,  without limitation,  deductions applicable to additional
sums payable  under  Section  2.9(b)),  the  Administrative  Agent or such other
Credit  Party,  as the case may be, shall  receive an amount equal to the sum it
would have received had no deductions  been made,  (ii) the Borrower  shall make
such  deductions,  and (iii) the Borrower shall pay the full amount  deducted to
the relevant taxation authority or other authority in accordance with Applicable
Law. Moreover,  if any Taxes (which for purposes of the remainder of this clause
(a) shall  include,  but not be  limited  to,  taxes and  charges  imposed on or
measured by net income or receipts of any Credit  Party by any  jurisdiction  to
the extent  imposed on  Additional  Amounts) are directly  asserted  against any
Credit  Party  with  respect  to any  payment  received  by  such  Credit  Party
hereunder,  such  Credit  Party may pay such  Taxes,  and,  except as  otherwise
provided in this Section,  the Borrower will promptly pay such Additional Amount
(including,  without  limitation,  any  penalties,  interest or  expenses) as is
necessary  in order that the net amount  received  and  retained  by such Credit
Party after the payment of such Taxes (including,  without limitation, any Taxes
on such  additional  amount) shall equal the amount such Credit Party would have
received and retained had no such Taxes been asserted;  provided,  however, such
Credit Party shall promptly give written notice to the Borrower, accompanied by,
to the extent  provided by the  relevant  taxing  authority,  a  calculation  in
reasonable  detail of the amount  demanded and evidence of the Taxes  imposed on
such  Credit  Party,  after  such  Credit  Party  has  actual  knowledge  of the
imposition of any Taxes. Where notice is not given to the Borrower within ninety
(90) days after the Credit Party  receives  written  notice of the  assertion of
Taxes and the Borrower does not  otherwise  have notice of such  assertion,  the
Borrower shall not be required to pay penalties,  additions to taxes,  expenses,
and  interest  accruing  on such Taxes from the date  ninety (90) days after the
receipt by the Credit  Party of written  notice of the  assertion  of such Taxes
until the date that the  Borrower  receives  such  notice.  The  Borrower  shall
furnish to such Credit Party within  forty-five (45) days (or as soon thereafter
as  available)  after  the date the  payment  of any  Taxes is due  pursuant  to
Applicable Law true and correct copies of tax receipts evidencing payment by the
Borrower  to the  extent  that such  receipts  are  issued  therefor.  Except as
otherwise provided in this Section,  if the Borrower fails to pay any Taxes that
it is required to pay  pursuant to the terms of this  Agreement  when due to the
appropriate  taxing  authority or fail to remit to any of the Credit Parties the
required  receipts or other required  documentary  evidence,  the Borrower shall
indemnify the Credit Parties for any  incremental  Taxes,  interest or penalties
that may become payable by the Credit Parties  primarily as a result of any such
failure.

                    (b) Each Lender that is a United States person that is not a
"domestic" corporation (as defined in Section 7701 of the Code) shall deliver to
the Borrower and the  Administrative  Agent,  on or prior to the Agreement  Date
(or, if such Lender becomes a party to this Agreement  (whether by assignment or
otherwise)  after the Agreement  Date, the date upon which such Lender becomes a
party hereto) and on or prior to the first Business Day of each calendar year

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<PAGE>   63

thereafter,  and from time to time thereafter as reasonably requested in writing
by the  Borrower,  one  complete,  duly  executed  original IRS Form W-9, or any
successor  form  thereto.  Each Lender that is not a United States person within
the meaning of Section 7701 of the Code (a "Foreign  Lender")  shall  deliver to
the Borrower and the Administrative Agent, on or prior to the Agreement Date (or
if such Foreign Lender becomes a party to this Agreement  (whether by assignment
or  otherwise)  after the date hereof,  the date upon which such Foreign  Lender
becomes  a party  hereto)  and on or prior  to the  first  Business  Day of each
calendar  year  thereafter  and  from  time to  time  thereafter  as  reasonably
requested in writing by the Borrower, either (i) two (2) complete, duly executed
original IRS Forms W-8ECI,  W-8IMY or W-8BEN, as appropriate,  or any successors
thereto,  establishing  that  such  Foreign  Lender  is on the date of  delivery
thereof  entitled to receive any and all payments  from the Borrower  under this
Agreement  free from  withholding of United States federal income tax or (ii) in
the case of such Foreign  Lender that is not legally  entitled to deliver any of
the forms  listed in the  foregoing  clause  (i),  (A) a  certificate  of a duly
authorized officer of such Foreign Lender to the effect that such Foreign Lender
is not (I) a "bank" within the meaning of Section 881(c)(3)(A) of the Code, (II)
a "10  percent  shareholder"  of the  Borrower  within  the  meaning  of Section
881(c)(3)(B)  of the Code or (III) a controlled  foreign  corporation  receiving
interest from a related person within the meaning of Section 881(c)(3)(C) of the
Code (such  certificate,  an "Exemption  Certificate") and (B) two (2) complete,
duly  executed  original  IRS Forms  W-8BEN or W-8IMY,  as  appropriate,  or any
successor thereto, certifying that such Foreign Lender is entitled to a complete
exemption  from United States federal  withholding  tax on payments of interest.
Each Foreign Lender shall,  from time to time,  deliver updated or corrected IRS
Forms W-8ECI, IRS Forms W-8IMY, IRS Forms W-8BEN or Exemption  Certificates,  or
any successors thereto, to the Borrower and the Administrative  Agent upon their
expiration or obsolescence to the extent and in the manner required under United
States federal tax law or after the  occurrence of any event  requiring a change
in the most recent  forms or other  documents  delivered  by such  Lender.  Such
Credit  Party shall  promptly  provide  written  notice to the  Borrower and the
Administrative  Agent  at any  time  it  determines  that it is no  longer  in a
position to provide any  previously  delivered  form or other  document  (or any
other form or  certification  adopted  by the IRS).  The  Borrower  shall not be
required to pay any Additional Amounts under Section 2.9(b),  Section 2.13(a) or
Section  6.10(a)  hereof to a Lender if such Foreign  Lender (x) fails to comply
with the  requirements  of this  Section  2.13(b),  (y) fails to  qualify  for a
complete reduction or exemption of United States federal tax withholding for any
reason other than a change in the United States federal tax law, or the official
interpretation  thereof,  in each case,  after the delivery of IRS Forms W-8ECI,
IRS  Forms  W-8IMY,  IRS  Forms  W-8BEN  or an  Exemption  Certificate,  or  any
successors  thereto,  or (z) is treated as a "conduit entity" within the meaning
of  U.S.  Treasury  Regulations  Section  1.881-3  or any  successor  provision.
Notwithstanding the foregoing, if at the date of an assignment pursuant to which
a Foreign Lender becomes a party to this Agreement, the assignor was entitled to
payments under Section 2.13(a) hereof,  then, to such extent, the assignee shall
not be required to deliver IRS Forms W-8ECI,  IRS Forms W-8IMY, IRS Forms W-8BEN
or  an  Exemption  Certificate,  or  any  successors  thereto,   establishing  a
withholding rate for such Foreign Lender that is less than the rate the assignor
was subject to, and the assignee shall be entitled to receive Additional Amounts
to such extent the assignor was so entitled.

(c) Each of the Credit Parties agrees that it will, to the extent reasonable and
without material cost or risk to it, (i) take all actions reasonably requested

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<PAGE>   64

by the Borrower to maintain all exemptions,  if any, available to it from United
States federal  withholding  taxes  (whether  available by treaty,  statute,  or
existing  administrative  waiver) and (ii) otherwise cooperate with the Borrower
to minimize any amounts payable by the Borrower under this Section 2.13.

                    (d) Any Credit Party that becomes  aware that it is entitled
to receive a refund (whether by way of a direct payment or by offset) in respect
of  Additional  Amounts paid by the Borrower,  which refund would  reasonably be
considered  allocable to or resulting from such payment or indemnification  made
pursuant  to this  Section  2.13,  shall  promptly  notify the  Borrower  of the
availability of such refund and shall, within thirty (30) days after the receipt
of a request from the  Borrower,  apply for such refund with the Borrower  being
responsible  for any  incremental  costs  associated  with such refund  request;
provided, however, that (i) the Borrower shall not be entitled to any damages as
a result of the  failure of such Credit  Party to so notify the  Borrower of the
availability  of such refund and (ii) the  Borrower  shall not have the right to
examine the books or records of any Credit Party.  If any Credit Party  receives
any such refund (as described in the preceding sentence),  so long as no Default
or Event of Default has occurred and is continuing,  it shall promptly repay the
amount of such  refund  (together  with any  interest  received  thereon) to the
Borrower;  provided,  however,  that  the  Borrower,  upon  the  request  of the
applicable Credit Party, shall repay the amount paid over to the Borrower in the
event such  Credit  Party is  required  to repay such  refund to the  applicable
authority.

                    (e)  If the  Borrower  is or  becomes  required  to pay  any
Additional Amounts to a Credit Party pursuant to this Section 2.13, the Borrower
shall have the right,  upon notice to the  Administrative  Agent and such Credit
Party, to (i) prepay without penalty,  on non-pro rata basis, all or any portion
of a Loan held by such Credit  Party plus all interest  and  Additional  Amounts
owing to such Credit Party as of the date of such prepayment,  (ii) require such
Credit Party to use reasonable  efforts to designate a different  lending office
for funding or booking its Loan under this Agreement or to assign its rights and
obligations  under  this  Agreement  to  another  of its  offices,  branches  or
affiliates, or (iii) require such Credit Party to effect an assignment of all of
its rights  and  obligations  under  this  Agreement  to  another  Credit  Party
designated  by the  Borrower if, in the case of the  foregoing  clauses (ii) and
(iii),  such  designation  or assignment  (A) would  eliminate or reduce amounts
payable  pursuant  to Section  2.13 hereof in the future and (B) would not cause
the  imposition  on such  Credit  Party  of any  additional  costs  or  legal or
regulatory burdens deemed by such Credit Party, in its reasonable  judgment,  to
be material or otherwise disadvantageous to such Credit Party.

          Section 2.14 Letters of Credit.

                    (a) Letter of Credit Committed Amount.

                         (i) Subject to the terms and  conditions  hereof,  each
Issuing Bank, in reliance on the agreements of the L/C Participants set forth in
Section  2.14(d)(i)  hereof,  agrees to issue Letters of Credit  denominated  in
Dollars for the account of the Borrower  prior to the Initial  Maturity Date, in
such form as may be approved  from time to time by such Issuing  Bank;  provided
that no Issuing Bank shall issue any Letter of Credit if, after giving effect to
such issuance,  (A) the aggregate amount of the L/C Obligations would exceed the
Letter of Credit Committed Amount, or (B) the sum of (I) the aggregate principal
amount of Revolving Loans then  outstanding,  plus (II) the aggregate  principal
amount of Swing Loans then outstanding, plus (III) the aggregate amount of L/C

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<PAGE>   65

Obligations then outstanding,  would exceed the Available Revolving  Commitment.
Schedule  2.14 lists all of the issued and  outstanding  Letters of Credit as of
the Agreement Date.

                         (ii) Each  Letter of Credit  shall (A) be either  (x) a
standby letter of credit issued to support obligations of the Borrower or any of
the  Designated  Subsidiaries,  contingent or otherwise,  to finance the working
capital and business needs of the Borrower or any of the Designated Subsidiaries
in the  ordinary  course of  business,  or (y) if  available  to the  applicable
Issuing Bank, a commercial letter of credit issued in respect of the purchase of
goods or services by the Borrower or any of the Designated  Subsidiaries  in the
ordinary course of business, and (B) expire no later than the earlier of (x) the
date that is twelve (12) months after the date of its issuance and (y) the fifth
(5th) Business Day prior to the Initial Maturity Date

                         (iii)  Each  Letter of Credit  shall be  subject to the
Uniform Customs and, to the extent not inconsistent  therewith,  the laws of the
State of New York or, in any case where the applicable  Issuing Bank issues such
Letters of Credit from an office located outside of the United States,  the laws
of the jurisdiction in which such office is located.

                         (iv) No Issuing  Bank shall at any time be obligated to
issue any Letter of Credit  hereunder if such issuance  would  conflict with, or
cause such Issuing Bank or any L/C  Participant to exceed any limits imposed by,
any Applicable Law.

                    (b)  Procedure  for  Issuance  of  Letters  of  Credit.  The
Borrower may request that an Issuing Bank issue a Letter of Credit,  at any time
prior to the fifth (5th)  Business Day prior to the Initial  Maturity  Date,  by
delivering  to such  Issuing Bank at its address for notices  specified  herein,
with a copy to the  Administrative  Agent,  a Request for  Issuance of Letter of
Credit,  completed  to the  satisfaction  of such Issuing  Bank,  and such other
certificates,  documents and other papers and  information  as such Issuing Bank
may request.  Upon receipt of any Request for Issuance of Letter of Credit,  the
applicable   Issuing  Bank  will  process  the  Letter  of  Credit   Application
accompanying   such  Request  for   Issuance  of  Letter  of  Credit,   and  the
certificates,  documents  and other  papers and  information  delivered to it in
connection  therewith,  in accordance  with its customary  procedures  and shall
promptly issue the Letter of Credit requested thereby (but in no event shall any
Issuing  Bank be required to issue any Letter of Credit  earlier  than three (3)
Business  Days after its receipt of any Request for Issuance of Letter of Credit
therefor  and all such  other  certificates,  documents  and  other  papers  and
information  relating  thereto) by issuing the original of such Letter of Credit
to the  beneficiary  thereof  or as  otherwise  may be agreed by the  applicable
Issuing Bank and the Borrower.  The applicable Issuing Bank shall furnish a copy
of such Letter of Credit to the Borrower and the  Administrative  Agent promptly
following the issuance thereof.

                    (c) Fees, Commissions and Other Charges.

                         (i) The Borrower shall pay to the Administrative Agent,
for the account of each Issuing Bank and the L/C  Participants,  with respect to
each Letter of Credit issued by such Issuing Bank hereunder,  a per annum letter
of credit  fee as and to the  extent  set forth in  Section  2.4(b)  hereof.  In
addition,  the Borrower shall pay to each Issuing Bank, for its own account,  an
issuing fee, as set forth in Section 2.4(c) hereof,  with respect to each Letter
of Credit issued by such Issuing Bank hereunder.

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<PAGE>   66

                         (ii) In addition to the foregoing fees and commissions,
the  Borrower  shall pay or  reimburse  each  Issuing  Bank for such  normal and
customary  costs and expenses as are incurred or charged by such Issuing Bank in
issuing, effecting payment under, amending or otherwise administering any Letter
of Credit issued by it.

                         (iii)The Administrative Agent shall, promptly following
its receipt  thereof,  distribute to each Issuing Bank and the L/C  Participants
all  fees  and  commissions  received  by the  Administrative  Agent  for  their
respective accounts pursuant to this Section 2.14(c).

                    (d) L/C Participations.

                         (i) Each Issuing Bank  irrevocably  agrees to grant and
hereby grants to each L/C Participant  and, to induce such Issuing Bank to issue
Letters of Credit hereunder,  each L/C Participant  irrevocably agrees to accept
and purchase and hereby  accepts and  purchases  from such Issuing  Bank, on the
terms and conditions  hereinafter stated, for such L/C Participant's own account
and  risk an  undivided  interest  equal  to such  L/C  Participant's  Revolving
Commitment  Ratio from time to time in effect in such Issuing  Bank's rights and
obligations  under each Letter of Credit  issued by it hereunder and each Letter
of Credit  Application  and the amount of each draft paid by such  Issuing  Bank
thereunder.  Each L/C Participant  unconditionally  and irrevocably  agrees with
each Issuing Bank that,  if a draft is paid under any Letter of Credit for which
such Issuing Bank is not  reimbursed in full by the Borrower in accordance  with
the terms of this Agreement, such L/C Participant shall pay to such Issuing Bank
upon demand at such  Issuing  Bank's  address for  notices  specified  herein an
amount equal to such L/C  Participant's  then Revolving  Commitment Ratio of the
amount of such draft, or any part thereof,  which is not so reimbursed.  If such
demand is made prior to 12:00 noon (New York time) on a Business  Day,  such L/C
Participant shall make such payment to the applicable  Issuing Bank prior to the
end of such  Business Day and  otherwise  such L/C  Participant  shall make such
payment on the next succeeding Business Day.

                         (ii)  If any  amount  required  to be  paid  by any L/C
Participant to any Issuing Bank pursuant to Section 2.14(d)(i) in respect of any
unreimbursed  portion of any payment  made by such Issuing Bank under any Letter
of  Credit  is not  paid on the  date  such  payment  is due but is paid to such
Issuing Bank within three (3) Business  Days after the date such payment is due,
such L/C Participant shall pay to such Issuing Bank on demand an amount equal to
the product of (A) such amount,  times (B) the daily average Federal Funds Rate,
as quoted by the applicable Issuing Bank, times (C) a fraction, the numerator of
which is the number of days that elapse  during such period and the  denominator
of which is 360. If any such amount  required to be paid by any L/C  Participant
pursuant to Section  2.12(d)(i) is not in fact made  available to the applicable
Issuing Bank by such L/C  Participant  within three (3) Business  Days after the
date such  payment is due,  such  Issuing Bank shall be entitled to recover from
such L/C Participant,  on demand,  such amount with interest thereon  calculated
from  such due  date at the rate per  annum  applicable  to Base  Rate  Advances
hereunder.  A certificate  of the  applicable  Issuing Bank submitted to any L/C
Participant  with respect to any amounts  owing under this  subsection  shall be
conclusive in the absence of manifest error.

                         (iii)  Whenever,  at any time after an Issuing Bank has
made payment  under any Letter of Credit  issued by it and has received from any
L/C  Participant  its pro rata share of such payment in accordance  with Section
2.14(d)(i), such Issuing Bank receives any payment related to such Letter of

                                       60
<PAGE>   67

Credit (whether directly from the Borrower or otherwise,  including  proceeds of
Collateral  applied thereto by such Issuing Bank), or any payment of interest on
account  thereof,  such Issuing Bank will, if such payment is received  prior to
12:00 noon (New York time) on a Business Day, distribute to such L/C Participant
its pro rata share  thereof  prior to the end of such Business Day and otherwise
such Issuing Bank will distribute  such payment on the next succeeding  Business
Day; provided, however, that in the event that any such payment received by such
Issuing  Bank shall be required to be returned by such  Issuing  Bank,  such L/C
Participant  shall return to the  applicable  Issuing  Bank the portion  thereof
previously distributed by such Issuing Bank to it.

                    (e) Reimbursement Obligation of the Borrower.

                         (i) The Borrower agrees to reimburse each Issuing Bank,
on the same  Business  Day on which a draft is  presented  under  any  Letter of
Credit and paid by such Issuing  Bank,  provided that such Issuing Bank provides
notice to the Borrower  prior to 12 noon (New York time) on such  Business  Day,
and  otherwise  the  Borrower  will  reimburse  such  Issuing  Bank on the  next
succeeding Business Day. The failure to provide such notice shall not affect the
Borrower's  absolute and  unconditional  obligation to reimburse the  applicable
Issuing  Bank for any draft paid  under any  Letter of Credit  issued by it. The
applicable  Issuing Bank shall  provide  notice to the Borrower on such Business
Day as a draft is presented and paid by such Issuing Bank  indicating the amount
of (A) such draft so paid and (B) any  taxes,  fees,  charges or other  costs or
expenses  incurred by such Issuing Bank in connection  with such  payment.  Each
such  payment  shall be made to the  applicable  Issuing Bank at its address for
notices specified herein in Dollars in immediately available funds.

                         (ii)  Interest  shall be payable on any and all amounts
remaining  unpaid by the Borrower under this Section  2.14(e) from the date such
amounts  are drawn  until  payment in full at the rate which would be payable on
any outstanding Base Rate Advances of Revolving Loans.

                         (iii) Each  drawing  under any  Letter of Credit  shall
constitute a request,  with no further action  required,  by the Borrower to the
Administrative Agent for a borrowing pursuant to Section 2.2(b) in the amount of
such drawing.  The funding date with respect to such borrowing shall be the date
of such drawing.

                    (f) Obligations Absolute.

                         (i) The Borrower's  obligations under this Section 2.14
shall  be  absolute  and  unconditional  under  any  and all  circumstances  and
irrespective  of any  set-off,  counterclaim  or defense  to  payment  which the
Borrower may have or have had against any Issuing Bank,  any L/C  Participant or
any beneficiary of a Letter of Credit.

                         (ii) The  Borrower  also agrees with each  Issuing Bank
and each L/C  Participant  that neither any Issuing Bank nor any L/C Participant
shall be responsible  for, and the Borrower's  reimbursement  obligations  under
Section  2.14(e)(i)  shall not be  affected  by,  among  other  things,  (A) the
validity or genuineness of documents or of any endorsements thereon, even though
such documents shall in fact prove to be invalid,  fraudulent or forged,  or (B)
any dispute  between or among the Borrower and any  beneficiary of any Letter of
Credit or any other party to which such Letter of Credit may be transferred, or

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(C) any claims  whatsoever of Borrower against any beneficiary of such Letter of
Credit or any such transferee.

                         (iii) Neither any Issuing Bank nor any L/C  Participant
shall be liable for any error, omission,  interruption or delay in transmission,
dispatch  or  delivery  of  any  message  or  advice,  however  transmitted,  in
connection with any Letter of Credit,  except for errors or omissions  caused by
the applicable Issuing Bank's gross negligence or willful misconduct.

                         (iv)  The  Borrower  agrees  that any  action  taken or
omitted by an Issuing Bank under or in  connection  with any Letter of Credit or
the  related  drafts or  documents,  if done in absence of gross  negligence  or
willful misconduct and in accordance with the standards of care specified in the
Uniform  Commercial  Code of the  State of New  York,  shall be  binding  on the
Borrower  and shall not result in any  liability of such Issuing Bank or any L/C
Participant to the Borrower.

                    (g)  Letter  of  Credit  Payments.  If any  draft  shall  be
presented  for payment  under any Letter of Credit,  the  responsibility  of the
applicable  Issuing Bank to the Borrower in connection with such draft shall, in
addition  to any payment  obligation  expressly  provided  for in such Letter of
Credit,  be limited to  determining  that the documents  (including  each draft)
delivered under such Letter of Credit in connection with such presentment are in
conformity with such Letter of Credit.

                    (h)  Application.  To the extent that any  provision  of any
Request  for  Issuance  of Letter of Credit or any Letter of Credit  Application
related  to any Letter of Credit is  inconsistent  with the  provisions  of this
Section 2.14, the provisions of this Section 2.14 shall apply.

                         (i) Change in Law.  If any change  after the  Agreement
Date in  Applicable  Law,  any change in the  interpretation  or  administration
thereof,  or any change after the Agreement Date in compliance  with  Applicable
Law by any  Issuing  Bank or any  other  Lender as a result  of any  request  or
directive  of any  governmental  authority,  central bank or  comparable  agency
(whether  or not  having  the  force of law)  shall (i)  impose,  modify or deem
applicable any reserve (including,  without limitation, any imposed by the Board
of Governors of the Federal Reserve System),  special deposit, capital adequacy,
assessment or other  requirements or conditions against letters of credit issued
by any Issuing  Bank or against  participations  by any L/C  Participant  in the
Letters of Credit or (ii) impose on any Issuing Bank or any L/C  Participant any
other condition regarding any Letter of Credit or any participation therein, and
the  result of any of the  foregoing  in the  reasonable  determination  of such
Issuing  Bank or such L/C  Participant,  as the case may be, is to increase  the
cost to such Issuing Bank or such L/C  Participant of issuing or maintaining any
Letter of Credit or purchasing or maintaining any participation  therein, as the
case may be, by an amount (which amount shall be reasonably  determined)  deemed
by such  Issuing  Bank or such L/C  Participant  to be  material,  then,  on the
earlier of (x) five (5) days following the date of demand (which demand shall be
made not later than three (3) months following such change) by such Issuing Bank
or such L/C  Participant  or (y) the Initial  Maturity  Date, the Borrower shall
immediately  pay to such Issuing Bank or such L/C  Participant,  as the case may
be,  such  additional  amount  or  amounts  as such  Issuing  Bank  or such  L/C
Participant,  as the  case  may  be,  determines  will  compensate  it for  such
increased  costs.  Within sixty (60) days of such written demand by such Issuing
Bank or such L/C Participant, the Borrower may, in its discretion, provide a

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<PAGE>   69

replacement  lender or lenders for such  Issuing  Bank or such L/C  Participant,
which  replacement  lender or lenders  will be subject  to the  approval  of the
Administrative  Agent,  which,  so long as no Default or Event of Default  shall
then exist, shall not be unreasonably  withheld,  and the Administrative  Agent,
such Lender and the Borrower  shall take all  necessary  actions to transfer the
rights,  duties and  obligations of such Issuing Bank or such L/C Participant to
such  replacement  lender or  lenders  within  such  sixty  (60) day  period.  A
certificate of such Lender or such Issuing Bank setting forth the amount, and in
reasonable  detail,  the basis for such Issuing  Bank or such L/C  Participant's
determination  of such  amount,  to be paid to  such  Issuing  Bank or such  L/C
Participant  by the  Borrower  as a  result  of any  event  referred  to in this
paragraph shall, absent manifest error, be conclusive. Such certificate shall be
delivered to the Borrower with each written demand for payment referenced above.
Each Issuing  Bank and each L/C  Participant  further  agree that they shall use
their best efforts to give the Borrower  thirty (30) days prior  notice,  and in
any event shall give prompt  notice,  of any event referred to in this paragraph
which may have the effect of materially increasing the cost to such Issuing Bank
or such L/C  Participant  of  issuing  or  maintaining  any  Letter of Credit or
purchasing or maintaining any participation therein.

                    (j) Indemnity. The Borrower will indemnify and hold harmless
the  Indemnified  Parties  from and  against  any and all  claims,  liabilities,
obligations,  losses,  damages,  penalties,  actions,  judgments,  suits, costs,
expenses or disbursements of any kind or nature whatsoever  (including,  without
limitation,  reasonable attorneys' fees) which may be imposed on, incurred by or
asserted against any such Indemnified  Parties in any way relating to or arising
out of the issuance of a Letter of Credit, except that the Borrower shall not be
liable  to any of the  Indemnified  Parties  for any  portion  of  such  claims,
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements  resulting from the gross negligence or willful
misconduct of the Indemnified  Parties as determined by a final,  non-appealable
judicial  order.  This  Section  2.14(j)  shall  survive   termination  of  this
Agreement.

          Section 2.15 Swing Loans.

                    (a) Swing Loan Advances.

                         (i)  Notices;   Disbursement.   Whenever  the  Borrower
desires an  Advance  of the Swing  Loans  hereunder,  it shall give  irrevocable
notice to the Swing Loan Lender,  with a copy to the  Administrative  Agent, not
later than 10:00 a.m.  (New York time) on the date of the  requested  Advance by
telephone,  followed immediately by a confirmation of such request in writing in
the form of Exhibit U hereto (a "Swing Loan Request"). Upon receipt of a copy of
the Swing Loan Request,  the  Administrative  Agent shall  promptly,  and in any
event no later than 1:00 p.m.  (New York time),  notify the Swing Loan Lender of
the amount of the Available Revolving Commitment, the aggregate principal amount
of the  Revolving  Loans  outstanding,  and  the  aggregate  amount  of the  L/C
Obligations  outstanding.  Subject to  satisfaction  of the conditions set forth
herein,  the Swing Loan Lender shall initiate the transfer of funds representing
such Advance of the Swing Loans to the Borrower by 3:00 p.m.  (New York time) on
the Business Day specified by the Borrower in the applicable Swing Loan Request.

                    (ii) Minimum Amounts.  Each Advance of the Swing Loans shall
be in a minimum principal amount of $100,000 and integral  multiples of $50,000,
in excess thereof.

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<PAGE>   70

               (b)  Repayment  of Swing  Loans.  Each Advance of the Swing Loans
shall be due and  payable on the  earliest of (i) thirty (30) days from the date
of such Advance,  (ii) the date of the next Advance of the Revolving  Loans,  or
(iii) the Initial Maturity Date; provided,  however, the Borrower may prepay any
Swing  Loan  Advance  prior to the date it is due upon  notice to the Swing Loan
Lender and the Administrative Agent not later than 10:00 a.m. (New York time) on
the date of prepayment of such Advance. If such notice is given by the Borrower,
the Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date  specified  therein,  together  with
accrued interest to such date on the amount prepaid.  If, and to the extent, any
Swing Loans  shall be  outstanding  on the date of any Advance of the  Revolving
Loans, such Swing Loans shall be repaid from the proceeds of such Advance of the
Revolving Loans prior to any distribution of such proceeds to the Borrower.  The
Swing Loan Lender may, at any time, in its sole  discretion by written notice to
the Borrower and the Administrative  Agent, require repayment of its Swing Loans
by way of a Revolving  Loan, in which case the Borrower  shall be deemed to have
requested a Base Rate Advance of the Revolving Loans in the amount of such Swing
Loans;  provided,  however,  that any such  demand  shall be deemed to have been
given (A) one (1) Business Day prior to the Initial  Maturity  Date,  (B) on the
last day of any thirty (30) day period  following the date of any Advance of the
Swing  Loans,  or if  such  day is not a  Business  Day,  on  the  Business  Day
immediately  preceding the last day of such thirty (30) day period, (C) upon the
occurrence of any Event of Default  described in Section  10.1(f) or (g) hereof,
and (D) upon acceleration of the Obligations,  whether on account of an Event of
Default  described  in  Section  10.1(f)  or (g)  hereof or any  other  Event of
Default,  in accordance with the provisions of Section 10.2 hereof  following an
Event of Default  (each such  Revolving  Loan made on account of any such deemed
request  therefor  as  provided  herein  being  hereinafter  referred  to  as  a
"Mandatory Borrowing").  Each Lender hereby irrevocably agrees to make Revolving
Loans based on its Revolving  Commitment Ratio promptly upon any such request or
deemed request on account of each  Mandatory  Borrowing in the amount and in the
manner  specified  in  the  preceding  sentence  and  on  the  same  such  date,
notwithstanding  (I) the amount of Mandatory  Borrowing  may not comply with the
minimum amount for advances of Revolving  Loans  otherwise  required  hereunder,
(II) whether any  conditions  specified in Article 4 are then  satisfied,  (III)
whether a Default or an Event of Default then exists,  (IV) failure for any such
request or deemed  request for Revolving  Loans to be made by the time otherwise
required in Section 2.2, (V) the date of such Mandatory  Borrowing,  or (VI) any
reduction in the Revolving Commitment or termination of the Revolving Commitment
relating   thereto   immediately   prior   to  such   Mandatory   Borrowing   or
contemporaneously therewith; provided, however, that no Lender shall be required
to make such  Revolving  Loans if, at the time that the Swing Loan Lender agreed
to fund any Swing Loan  Request,  the Swing Loan  Lender  had  received  written
notice from the  Borrower or the  Administrative  Agent of the  occurrence  of a
Default  or Event of Default or to the extent  such  Mandatory  Borrowing  would
cause a Lender  to  exceed  its  Revolving  Commitment.  In the  event  that any
Mandatory Borrowing cannot for any reason be made on the date otherwise required
above  (including,  without  limitation,  as a result of the commencement of any
Insolvency  Proceeding  with  respect  to  the  Borrower  or any  other  obligor
hereunder or under any other Loan Document), then each Lender hereby agrees that
it  shall  forthwith  purchase  (as of the date the  Mandatory  Borrowing  would
otherwise  have  occurred,  but  adjusted  for any  payments  received  from the
Borrower on or after such date and prior to such  purchase)  from the Swing Loan
Lender such  participations in the outstanding Swing Loans as shall be necessary
to cause each such  Lender to share in such Swing Loans  ratably  based upon its
respective  Revolving  Commitment Ratio (determined  before giving effect to any
termination of the Commitments pursuant to Section 10.2), provided that (x) all

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<PAGE>   71

interest  payable on the Swing  Loans shall be for the account of the Swing Loan
Lender until the date as of which the respective participation is purchased, and
(y) at the time any  purchase of  participations  pursuant  to this  sentence is
actually made, the purchasing Lender shall be required to pay (to the extent not
paid by the Borrower) to the Swing Loan Lender interest on the principal  amount
of  participation  purchased  for each day from and including the day upon which
the Mandatory  Borrowing would otherwise have occurred but excluding the date of
payment  for such  participation,  at the rate equal to, if paid  within two (2)
Business  Days of the date of the Mandatory  Borrowing,  the Federal Funds Rate,
and thereafter at a rate equal to the Base Rate.  Notwithstanding the foregoing,
no Lender shall be required to purchase  participations in the outstanding Swing
Loans  from the Swing Loan  Lender  if, at the time that the Swing  Loan  Lender
agreed to fund any Swing  Loan  Request,  the Swing  Loan  Lender  had  received
written notice from the Borrower or the  Administrative  Agent of the occurrence
of a Default  or Event of  Default  or if,  and to the  extent,  the sum of such
Lender's Revolving Loans outstanding plus the amount of such participation would
exceed the Revolving Commitment of such Lender.

               (c) Interest on Swing Loans. Swing Loans shall bear interest at a
per annum rate agreed to by the  Borrower and the Swing Loan Lender as set forth
in the Swing Loan Note; provided,  however,  that (i) from and after any failure
to make any  payment of  principal  or  interest  in respect of any of the Loans
hereunder when due (after giving effect to any applicable grace period), whether
at scheduled or accelerated  maturity or on account of any mandatory  prepayment
or (ii) while any Swing Loans in which the Lenders have acquired  participations
pursuant to Section  2.15(b)  remain  outstanding,  the principal of and, to the
extent permitted by law,  interest on, Swing Loans shall bear interest,  payable
on demand, at the Default Rate.  Interest on each Swing Loan shall be payable in
arrears  on the date  payment  of such  Swing  Loan is due  pursuant  to Section
2.15(b).

               (d) Reporting. Unless the Swing Loan Lender is the Administrative
Agent,  the Swing Loan Lender  shall  provide to the  Administrative  Agent,  on
Friday of each week and on each date the Administrative Agent notifies the Swing
Loan  Lender  that  the   Borrower  has  made  a  Request  for  Advance  or  the
Administrative  Agent  otherwise  requests  the  same,  an  accounting  for  the
outstanding  Swing Loans in form reasonably  satisfactory to the  Administrative
Agent.

               (e) Termination of Swing Loans; Designation of Swing Loan Lender.
Unless a Default or an Event of Default then  exists,  the Swing Loan Lender may
resign as Swing Loan Lender by giving the Borrower and the Administrative  Agent
at least seven (7) days' prior written  notice.  The Borrower must give ten (10)
days'  prior  written  notice  to the  Administrative  Agent  of any  change  in
designation  of the Swing Loan  Lender.  The  replaced  Swing Loan Lender  shall
continue to be a "Swing  Loan  Lender" for  purposes of  repayment  of any Swing
Loans made prior to such replacement and outstanding after such replacement.

          Section 2.16 Incremental Facility Loans.

               (a) Subject to the terms and  conditions of this  Agreement,  the
Borrower may request an  Incremental  Facility  Commitment  on any Business Day;
provided,  however,  that the Borrower may not request an  Incremental  Facility
Commitment or an Incremental  Facility Loan during the  continuance of a Default
or Event of  Default,  including,  without  limitation,  any Default or Event of
Default that would result after giving effect to any Incremental  Facility Loan;
and provided further, that the Borrower may request up to five (5) Incremental

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Facility  Commitments  (each  of which  commitments  may be from  more  than one
Lender) which may be no less than  $50,000,000 and no more than  $250,000,000 in
the aggregate.  The Incremental  Facility Maturity Date applicable to any of the
Incremental  Facility Loans shall be no earlier than the date which is three (3)
calendar months after the Final Maturity Date, unless such Incremental  Facility
Commitments are used to increase the amount of any of the Commitments hereunder.
In requesting Incremental Facility Commitments, the Borrower shall offer each of
the  Lenders  an  opportunity  to provide an  Incremental  Facility  Commitment;
provided  that none of the Lenders  shall be  required  to issue an  Incremental
Facility  Commitment  and the  decision  of any  Lender to issue or not issue an
Incremental  Facility  Commitment to the Borrower shall be at such Lender's sole
discretion.  Persons  not  then  Lenders  may  be  included  as  Lenders  having
Incremental  Facility   Commitments  with  the  written  approval,   not  to  be
unreasonably  withheld, of the Borrower and the Lead Arrangers.  The Incremental
Facility  Commitments  (i) may be in the form of a  revolving  or a term  credit
facility and may be structured as an institutional  tranche, (ii) may be used to
increase  the  amount of any of the  Commitments  hereunder,  provided  that the
amount of such Incremental  Facility Commitments is added on a pro rata basis to
the remaining scheduled amortization in the case of the Term Loans or commitment
reductions  in the case of the  Revolving  Loan  Commitment,  (iii) must not (A)
have,  (x) in the case of  Incremental  Facility Loans which are term loans (but
not Tranche A Loans),  scheduled amortization providing for principal repayments
earlier  than,  or in amount on a percentage  basis larger than,  those dates or
amounts set forth in the  repayment  schedule  for the Tranche B Loans set forth
herein,  or (y) in the case of  Incremental  Facility  Loans which are revolving
loans,  scheduled amortization providing for commitment reductions earlier than,
or in an amount on a percentage  basis  larger than,  those dates or amounts set
forth in the reduction  schedule for the Revolving  Commitment set forth herein,
or (B) be secured by more or different collateral than the Loans hereunder,  and
(iv) must be  governed by this  Agreement  and the other Loan  Documents  and be
subject to terms and  conditions not more  restrictive  than those set forth for
the Loans herein and therein.

               (b)  Prior  to  the  effectiveness  of any  Incremental  Facility
Commitment,  the Borrower shall (i) deliver to the Administrative  Agent and the
Lenders a written notice (each a "Notice of Incremental  Facility  Commitment"),
in form and  substance  reasonably  satisfactory  to the  Administrative  Agent,
setting forth terms and provisions  with respect to interest rates and scheduled
amortization  with respect to the proposed  Incremental  Facility  Loan and (ii)
provide revised  Projections to the Credit  Parties,  which shall be in form and
substance  reasonably  satisfactory  to  the  Lead  Arrangers  and  which  shall
demonstrate  the Borrower's  ability to timely repay such  Incremental  Facility
Commitment and any Incremental  Facility Loans thereunder and to comply with the
terms and conditions of this Agreement and the other Loan Documents.

               (c) No Incremental  Facility Commitment shall by itself result in
any  reduction of the  Revolving  Commitment,  the Tranche A  Commitment  or the
Tranche B  Commitment  or of the  Commitment  Ratios of any Lender  issuing such
Incremental Facility Commitment.

               (d)  Advances of the  Incremental  Facility  Loans (i) shall bear
interest at the Base Rate or the Eurodollar Rate or such other rate agreed to by
the Lenders making such Advances;  (ii) subject to Section 2.16(a) hereof, shall
be repaid as agreed to by the  Borrower  and the Lenders  making such  Advances;
(iii)  shall  for all  purposes  be  Obligations  hereunder  and  under the Loan
Documents;  (iv) shall be represented by promissory  notes which set forth terms
and provisions  with respect to interest rates and scheduled  amortization  with
respect to such Incremental Facility Loans and are in form and substance

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<PAGE>   73

acceptable to the  Administrative  Agent and the Borrower (each, an "Incremental
Facility  Note");  and (v) shall rank pari passu with the Loans for  purposes of
Sections  2.11 and 10.2 hereof and with  respect to the  Collateral  (unless the
applicable  Incremental Facility Lender shall otherwise agree in writing to have
its Incremental Facility Loans be junior to the Loans).

               (e) Incremental Facility Loans shall be requested by the Borrower
pursuant to a request (which shall be substantially in the form of a Request for
Advance)  delivered  in the same manner as a Request for  Advance,  but shall be
funded  pro rata  only by those  Lenders  that  hold  the  Incremental  Facility
Commitments.

                              ARTICLE 3 - Guarantee

          Section 3.1 Guarantee. Holdco hereby unconditionally guarantees to the
Credit  Parties and their  respective  permitted  successors and assigns and the
subsequent  holders  of the  Obligations  (including,  without  limitation,  any
interest on the Loans  accruing  after the filing of a petition  initiating  any
Insolvency  Proceeding  with respect to Holdco,  the Borrower or any  Designated
Subsidiary,  whether or not such interest accrues or is recoverable  against the
Borrower after the filing of such petition for purposes of the  Bankruptcy  Code
or is an allowed  claim in such  proceeding),  irrespective  of the validity and
enforceability  of this Agreement  (other than this Article 3), the Notes or the
other Loan  Documents  or the  Obligations  of the  Borrower or any of the other
Guarantors  hereunder or thereunder,  the value or sufficiency of any Collateral
or any other  circumstance  that  might  otherwise  affect  the  liability  of a
guarantor,  that: (i) the principal of and interest on the Loans,  the Notes and
all other  Obligations  of the Borrower and the other  Guarantors  to the Credit
Parties under this  Agreement,  the Notes and the other Loan Documents  shall be
promptly paid in full when due, whether at stated  maturity,  by acceleration or
otherwise,  in accordance with the terms hereof and thereof; and (ii) in case of
any  extension  of time of  payment or renewal of any Notes or any of such other
Obligations, the same shall be promptly paid in full when due in accordance with
the  terms  of  the  extension  or  renewal,  whether  at  stated  maturity,  by
acceleration or otherwise.  The foregoing  guaranty is a guaranty of payment and
not of  collection.  Failing  payment when due of any amount so  guaranteed  for
whatever reason, Holdco will be obligated to pay the same immediately.

          Section 3.2 Waivers and Releases.  Holdco hereby waives notice of, and
consents to, any extension of time of payment, renewals, releases of collateral,
delays in  obtaining  or  realizing  upon or  failures  to obtain,  perfect,  or
maintain perfection of, or realize upon collateral or other indulgence from time
to time granted by any of the Credit Parties in respect of this  Agreement,  the
Notes or any other Loan Document.  Until the Obligations  have been paid in full
in cash or otherwise satisfied to the satisfaction of the Credit Parties, Holdco
hereby  releases  the  Borrower  from all,  and  agrees not to assert or enforce
(whether by or in a legal or equitable  proceeding or otherwise)  any,  "claims"
(as defined in 11 U.S.C.  ss. 101(4)),  whether arising under  Applicable Law or
otherwise,  to which Holdco is or would be entitled by virtue of its obligations
hereunder,  any  payment  made  pursuant  hereto or the  exercise  by the Credit
Parties of their  rights  with  respect to any  Collateral,  including  any such
claims to which Holdco may be entitled as a result of any right of  subrogation,
exoneration  or  reimbursement.  To the  extent  that  the  Borrower  may not be
released  by  Holdco  under  this  Article  3,  Holdco  agrees  that,  until the
Obligations  have  been  paid in full in  cash  or  otherwise  satisfied  to the
satisfaction  of the Credit  Parties,  it shall not be  entitled to any right of
subrogation,  exoneration,  reimbursement  or  contribution  in  respect  of any
Obligations guaranteed hereby. With respect to this Agreement and the Notes,

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Holdco hereby waives presentment, protest, demand of payment, notice of dishonor
and all other notices and demands  whatsoever.  Holdco  further  agrees that, as
between Holdco, on the one hand, and the Credit Parties,  on the other hand, (i)
the maturity of the Obligations guaranteed hereby may be accelerated as provided
in Section 10.2 hereof for the purposes of this Guarantee,  notwithstanding  any
stay, injunction or other prohibition preventing such acceleration in respect of
the Obligations  guaranteed  hereby, and (ii) in the event of any declaration of
acceleration  of such  Obligations  as provided  in Section  10.2  hereof,  such
Obligations  (whether or not otherwise due and payable) shall  forthwith  become
due and payable by Holdco for purposes of this  guarantee.  The  Obligations  of
Holdco  under this  Article 3 shall be  automatically  reinstated  if and to the
extent  that for any  reason  any  payment  by or on behalf of the  Borrower  is
rescinded or must otherwise be restored by any holder of any of the  Obligations
guaranteed  hereunder,  whether as a result of any  Insolvency  Proceeding  with
respect to Holdco, the Borrower or any Designated  Subsidiary or otherwise , and
Holdco  agrees  that it will  indemnify  the Credit  Parties on demand for their
out-of-pocket costs and expenses (including, without limitation, reasonable fees
and expenses of counsel)  incurred by the Credit Parties in connection with such
rescission or restoration.

               Section 3.3 Miscellaneous.

                    (a) Upon the bankruptcy or winding up or other  distribution
of Assets of the  Borrower  or any  Designated  Subsidiary  or of any  surety or
guarantor for any of Obligations of the Borrower to the Credit  Parties,  or any
of them, the rights of the Credit  Parties  against Holdco shall not be affected
or impaired by the omission of any Credit Party to prove its claim,  or to prove
its full claim,  and the  Collateral  Agent may prove such claims as it sees fit
and may refrain  from  proving any claim and in its  discretion  may value as it
sees fit or refrain  from  valuing  any  security  held by it without in any way
releasing,  reducing or otherwise affecting the liability to any Credit Party of
Holdco.

                    (b)  Holdco  absolutely,   unconditionally  and  irrevocably
waives  any and all  right to  assert  any  defense,  set-off,  counterclaim  or
cross-claim  of any nature  whatsoever  with  respect  to this  Article 3 or the
obligations of Holdco  hereunder or the obligations of any other Person or party
(including,  without limitation, the Borrower) relating to this Article 3 or the
obligations of any other guarantor with respect to the  Obligations  (other than
payment in full) in any  action or  proceeding  brought  by any Credit  Party to
collect the Obligations or any portion thereof, or to enforce the obligations of
Holdco under this Article 3.

                    (c) The  Credit  Parties,  or any of them,  may from time to
time,  without  exonerating or releasing Holdco in any way under this Guarantee,
(i) release, discharge,  abandon or otherwise deal with or fail to deal with any
guarantor or surety of the Guaranteed  Obligations or any security or securities
therefor or any part thereof now or hereafter held by the  Administrative  Agent
or (ii)  amend,  modify,  extend,  accelerate  or waive in any manner any of the
provisions, terms, or conditions of the Loan Documents, all as they may consider
expedient or appropriate in their sole discretion or (iii) act or fail to act in
any manner  referred to in this Article 3 without  regard to whether such action
or inaction may deprive Holdco of its right to subrogation  against the Borrower
to recover  full  indemnity  for any payments  made  pursuant to this Article 3.
Without  limiting the  generality of this Article 3, it is  understood  that the
Credit Parties may, without  exonerating or releasing Holdco, give up, or modify
or  abstain  from  perfecting  or  taking  advantage  of any  security  for  the
Obligations and accept or make any compositions or arrangements, and realize

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upon any security for the Obligations  when, and in such manner,  as such Person
may deem expedient, all without notice to Holdco.

                    (d) If a claim is ever made upon the Credit  Parties for the
repayment  or  recovery  of any amount or  amounts  received  by such  Person in
payment of any of the  Obligations  and such  Person  repays all or part of such
amount  by  reason  of (i)  any  judgment,  decree  or  order  of any  court  or
administrative body having jurisdiction over such Person or any of its property,
or (ii) any  settlement or compromise of any such claim  effected by such Person
with any such claimant,  including the Borrower, then in such event Holdco shall
be and remain  obligated  to such Person  hereunder  for the amount so repaid or
recovered  to the same  extent  as if such  amount  had  never  originally  been
received by such Person.

                    (e) Holdco expressly  represents and  acknowledges  that any
financial accommodations by the Credit Parties, or any of them, to the Borrower,
including  without  limitation  the  extension  of the  Loans are and will be of
direct interest, benefit and advantage to Holdco.

                        ARTICLE 4 - Conditions Precedent

          Section 4.1 Conditions  Precedent to Initial  Advance of the Loans and
to the Issuance of the Initial  Letter of Credit.  The obligation of the Lenders
to undertake their respective Commitments and to make the initial Advance of the
Loans, and of the Issuing Bank to issue the initial Letter of Credit, is subject
to the prior fulfillment of each of the following conditions:

                    (a) The Administrative Agent shall have received each of the
following  (with copies for each of the Lenders which have requested  same),  in
form and substance  satisfactory  to the  Arrangers and each of the Lenders,  as
applicable:

                         (i) this duly executed Agreement;

                         (ii) the duly executed Notes;

                         (iii) the duly executed  Borrower's  Pledge  Agreement,
together with appropriate  original stock  certificates and undated stock powers
with respect thereto executed in blank and appropriate UCC-1 financing statement
forms;

                         (iv) the duly  executed  Security  Agreement,  together
with evidence of the filing of appropriate UCC-1 financing statement forms;

                         (v)  the  loan   certificate   of  the   Borrower,   in
substantially  the form attached hereto as Exhibit V, including a certificate of
incumbency with respect to each Authorized  Signatory of the Borrower,  together
with the following  items: (A) a copy of the certificate of incorporation of the
Borrower,  certified to be complete and correct by the Secretary of State of the
State of  Delaware,  and a  complete  and  correct  copy of the  by-laws  of the
Borrower;  (B) a  certificate  of good  standing for the Borrower  issued by the
Secretary of State of Delaware; and (C) a true, complete and correct copy of the
resolutions of the board of directors of the Borrower,  authorizing the Borrower
to execute,  deliver and perform this  Agreement and the other Loan Documents to
which it is a party;

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                         (vi) the duly executed Subsidiary Guaranty;

                         (vii) the duly executed  Subsidiary Security Agreement,
together with appropriate UCC-l financing statement forms;

                         (viii) the duly executed  Subsidiary  Pledge Agreement,
together with appropriate  original stock  certificates and undated stock powers
with respect thereto executed in blank and appropriate UCC-1 financing statement
forms;

                         (ix)  a  loan  certificate  from  each  Guarantor,   in
substantially  the form attached hereto as Exhibit W, including a certificate of
incumbency with respect to each Authorized Signatory of such Guarantor, together
with  the  following  items:  (A) a  copy  of the  certificate  or  articles  of
incorporation, certificate of limited partnership or certificate of organization
of such  Guarantor,  certified  to be complete  and correct by the  Secretary of
State of the state of such Guarantor's  organization;  (B) a certificate of good
standing for such  Guarantor  issued by the  Secretary of State or similar state
official in the state in which such  Guarantor is organized;  (C) a complete and
correct copy of the by-laws,  partnership agreement or limited liability company
or operating agreement of such Guarantor; and (D) a complete and correct copy of
the resolutions of the board of directors,  or other appropriate entity, of such
Guarantor  authorizing  such Guarantor to execute,  deliver and perform the Loan
Documents to which it is a party;

                         (x) the duly executed Holdco Pledge Agreement, together
with  appropriate  original  stock  certificates  and undated  stock powers with
respect thereto executed in blank;

                         (xi) the duly executed  Intellectual  Property Security
Agreements, together with appropriate filing coversheets;

                         (xii)  copies  of  insurance  binders  or  certificates
covering  the  Assets  of the  Borrower  and the  Designated  Subsidiaries,  and
otherwise meeting the requirements of Section 6.5 hereof;

                         (xiii) a legal opinion, dated as of the Agreement Date,
of Dow, Lohnes & Albertson, PLLC, as special counsel to Holdco, the Borrower and
its  Subsidiaries  in  connection  with the  transactions  contemplated  by this
Agreement and the other Loan Documents, addressed to the Arrangers and the other
Credit  Parties,  in form  and  substance  reasonably  satisfactory  to the Lead
Arrangers and their counsel;

                         (xiv)  a duly  executed  Request  for  Advance  for the
initial Advance of the Loans;

                         (xv) the duly executed Use of Proceeds Letter;

                         (xvi)  the  duly  executed   Certificate  of  Financial
Condition for the Borrower and the  Designated  Subsidiaries  on a  consolidated
basis,  given by a  Financial  Officer of the  Borrower  which  shall  include a
certification  that, since December 31, 1999, no event has occurred which would,
with the passage of time,  be  reasonably  likely to have a  Materially  Adverse
Effect;

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<PAGE>   77

                         (xvii)  copies  of  all  consents  of any  Person,  and
filings with any Governmental  Authority made or obtained in connection with the
transactions contemplated by this Agreement and the other Loan Documents;

                         (xviii) a duly executed Lien termination  agreement and
recordable Lien releases with respect to any Liens which are not Permitted Liens
hereunder upon the Assets of the Borrower and the Designated  Subsidiaries,  and
with respect to any other Indebtedness which is not Permitted Debt hereunder;

                         (xix)  the  duly  executed   Assignment  of  SBC  Lease
Documents; and

                         (xx)  all  such   other   documents   as   either   the
Administrative  Agent or any  Lender may  reasonably  request,  certified  by an
appropriate governmental official or an Authorized Signatory if so requested.

                    (b)  The  Lead  Arrangers   shall  have  received   evidence
satisfactory to them that all Necessary Authorizations to the extent relating to
Material  Towers,  and all  necessary  consents to the  execution,  delivery and
performance  by the Borrower of this  Agreement and the other Loan  Documents to
which it is a party and by Holdco and the  Designated  Subsidiaries  of the Loan
Documents to which they are  parties,  have been  obtained or made,  are in full
force and effect and are not  subject to any pending or  threatened  reversal or
cancellation,  and the Administrative Agent shall have received a certificate of
an Authorized Signatory of the Borrower so stating.

                    (c) The Credit Parties shall receive payment of (i) all fees
and  expenses  due  and  payable  on  the  Agreement  Date  in  respect  of  the
transactions  contemplated  hereby and (ii) all interest and fees payable  under
the Prior Credit Agreement accrued to and including the Agreement Date.

                    (d) The Lead  Arrangers  shall have received the  Borrower's
financial  projections,  after  giving  effect  to the SBC  Transaction  and the
transactions  contemplated  by this  Agreement and the other Loan Documents on a
fiscal year basis through the Final Maturity Date, and on a fiscal quarter basis
through December 31, 2001 (together with any updates and revisions thereof,  the
"Projections"),  and in the  event of any  change in  circumstances  that in the
reasonable   judgment  of  the  Lead  Arrangers  would  materially   affect  the
Projections,  any revisions of such Projections requested by the Lead Arrangers,
in form and substance reasonably satisfactory to the Lead Arrangers.

                    (e) The Arrangers  shall have  received a  certificate  of a
Financial Officer of the Borrower,  in substantially the form of the Performance
Certificate required to be delivered under Section 7.3 hereof, demonstrating, on
a pro  forma  basis as of the  Agreement  Date and  after  giving  effect to the
initial Advance of the Loans hereunder,  that the Borrower is in compliance with
each of the Financial Covenants.

                    (f) The Arrangers  shall not be aware of any  information or
other matters  affecting the assets or rights to be acquired in connection  with
the SBC Transaction,  or the other  transactions  contemplated by this Agreement
and the other Loan  Documents,  which  information is inconsistent in a material
and adverse manner with any information disclosed in the SBC Lease Documents and

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<PAGE>   78

could reasonably be expected to have a Materially Adverse Effect.

                    (g) All legal  matters  incident to this  Agreement  and the
consummation  of  the  transactions  contemplated  hereby  shall  be  reasonably
satisfactory to the Lead Arrangers and their counsel.

          Section 4.2  Conditions  Precedent to Each Advance.  The obligation of
the Lenders to make each Advance  (including the initial  Advance  hereunder and
including any Advance of the Swing Loans) is subject to the  fulfillment of each
of the following conditions  immediately prior to or contemporaneously with such
Advance:

                    (a) All of the  representations  and  warranties  made by or
with respect to Holdco, the Borrower and the Designated Subsidiaries,  or any of
them,  under this  Agreement and the other Loan  Documents,  which,  pursuant to
Section 5.2  hereof,  are made at and as of the time of such  Advance,  shall be
true and correct at such time in all  material  respects,  both before and after
giving effect to the application of the proceeds of such Advance;

                    (b) There shall not exist, on the date of the making of such
Advance and after giving  effect to the proceeds of such  Advance,  a Default or
Event of Default hereunder,  and the  Administrative  Agent, or in the case of a
Swing Loan, the Swing Loan Lender,  shall have received a Request for Advance or
Swing Loan Request,  as  applicable,  signed by an  Authorized  Signatory of the
Borrower so  certifying,  which  Request for Advance or Swing Loan  Request,  as
applicable,  shall also (i) certify the Borrower's compliance with the Financial
Covenants,  (ii) provide  calculations  demonstrating the Borrower's  compliance
with Section 9.1 hereof before and after giving effect to such Advance and (iii)
certify that each of the SBC Lease  Documents is in full force and effect or, if
any of SBC Lease  Documents  has been  terminated,  that Holdco has received all
amounts  required to be paid to Holdco  pursuant to Section 14.1 (or any similar
provision)  of the SBC  Agreement to Sublease and such amounts have been applied
to prepay the Loans as and to the extent  required  pursuant  to Section  2.7(d)
hereof.

          Section 4.3 Conditions Precedent to Issuance of Each Letter of Credit.
The  obligation  of any Issuing Bank to issue any Letter of Credit  hereunder is
subject to the prior fulfillment of each of the following conditions:

                    (a) All of the  representations  and  warranties  made by or
with respect to Holdco, the Borrower and the Designated Subsidiaries,  or any of
them,  under this  Agreement and the other Loan  Documents,  which,  pursuant to
Section  5.2  hereof,  are  made at and as of the time of the  issuance  of such
Letter  of  Credit,  shall  be true and  correct  at such  time in all  material
respects,  both before and after giving effect to the issuance of such Letter of
Credit; and

                    (b) There  shall not exist,  on the date of the  issuance of
such Letter of Credit and after  giving  effect  thereto,  a Default or Event of
Default hereunder,  and the  Administrative  Agent shall have received a Request
for Issuance of Letter of Credit so certifying.

          Section 4.4  Conditions  Subsequent to Agreement  Date. As a condition
subsequent to the funding of the Tranche B Loans,  and the making of the initial
Advance  of the  Tranche  A Loans  and the  Revolving  Loans  hereunder,  on the
Agreement  Date,  the  Borrower  shall  perform  or  cause to be  performed  the
following  (the  failure by the  Borrower to so perform or cause to be performed
constituting an Event of Default hereunder):

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<PAGE>   79

                    (a) On or before the date  thirty  (30) days  following  the
Agreement  Date, the Borrower shall deliver to the Collateral  Agent a corrected
stock  certificate  for  SpectraSite  Communications,  Ltd.  and  prior  to such
delivery SpectraSite Communications, Ltd. shall have no material assets; and

                    (b) On or before  the date one  hundred  twenty  (120)  days
following  the  Agreement  Date,  (i) the Borrower  shall have  delivered to the
Administrative  Agent evidence  reasonably  satisfactory  to the  Administrative
Agent that the Borrower has used its commercially reasonable efforts to transfer
to a Tower Subsidiary all Tower Sites that are not held by a Tower Subsidiary as
of the Agreement Date,  provided that such efforts shall not require the payment
of any material  incremental  amounts, and (ii) the Borrower shall have provided
to  the  Administrative  Agent  a  report,  in  form  and  substance  reasonably
satisfactory  to  Administrative  Agent,  summarizing the location of each Tower
Site and the holder  thereof and shall have  delivered to the  Collateral  Agent
such  financing  statements as shall be reasonably  requested by the  Collateral
Agent to perfect its security  interest in the Collateral  located at each Tower
Site.

                   ARTICLE 5 - Representations and Warranties

          Section 5.1  Representations  and  Warranties.  Each of Holdco and the
Borrower,  for  itself  and on  behalf of each of the  Designated  Subsidiaries,
hereby  agrees,  represents  and warrants in favor of each of the Credit Parties
that:

                    (a) Organization;  Ownership; Power; Qualification.  Each of
Holdco, the Borrower and each of the Designated Subsidiaries is a corporation or
other legal entity duly organized,  validly  existing and in good standing under
the laws of the state of its incorporation or organization, has the corporate or
other  organizational  power  and  authority  to own or lease  and  operate  its
properties  and to carry on its business as now being and hereafter  proposed to
be  conducted.  Each  of  Holdco,  the  Borrower  and  each  of  the  Designated
Subsidiaries is duly  qualified,  in good standing and authorized to do business
in each  jurisdiction  in which the character of its properties or the nature of
its businesses requires such qualification or authorization except where failure
to be so  qualified,  in good  standing or  authorized  could not  reasonably be
expected to have, individually or in the aggregate, a Materially Adverse Effect.

                    (b)  Authorization;  Enforceability.  The  Borrower  has the
corporate power and has taken all necessary action,  corporate or otherwise,  to
authorize it to borrow hereunder, to execute, deliver and perform this Agreement
and each of the other Loan  Documents to which it is a party in accordance  with
their respective terms, and to consummate the transactions  contemplated  hereby
and thereby.  Holdco has the corporate power and has taken all necessary action,
corporate or  otherwise,  to  authorize it to execute,  deliver and perform this
Agreement  and  each of the  other  Loan  Documents  to  which  it is a party in
accordance  with their  respective  terms,  and to consummate  the  transactions
contemplated  hereby and thereby.  Each of the Designated  Subsidiaries  has the
corporate  or other  organizational  power and has taken all  necessary  action,
corporate or otherwise, to authorize it to execute,  deliver and perform each of
the Loan  Documents to which it is a party in accordance  with their  respective
terms and to consummate the  transactions  contemplated by this Agreement and by
such Loan  Documents.  This  Agreement,  and each of the other Loan Documents to
which any of Holdco,  the Borrower or any of the  Designated  Subsidiaries  is a
party,  has been duly  executed and  delivered  by Holdco,  the Borrower or such
Designated  Subsidiary,  as the case may be, and is a legal,  valid and  binding
obligation of Holdco, the Borrower or such Designated Subsidiary, as applicable,

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enforceable against Holdco, the Borrower or such Designated  Subsidiary,  as the
case may be, in accordance with its terms, except to the extent that enforcement
thereof may be limited by bankruptcy, insolvency,  liquidation,  reorganization,
reconstruction and other similar laws affecting enforcement of creditors' rights
generally and by the application of general equitable principles.

                    (c) Equity  Interests,  Corporate  Organization  and Related
Matters.  Holdco owns all of the issued and outstanding  Equity Interests of the
Borrower,  and as of the Agreement Date, except as set forth on Schedule 5.1(c),
the Borrower owns all of the issued and outstanding  Equity Interests of each of
the Designated  Subsidiaries and has the unrestricted  right to vote such Equity
Interests  owned by it. As of the Agreement Date, the Borrower does not have any
Subsidiaries  other than the  Subsidiaries  listed on Schedule  5.1(c)  attached
hereto,  which  Subsidiaries  are  identified  on such  schedule  as  Restricted
Subsidiaries,   Unrestricted   Subsidiaries,   Foreign  Subsidiaries,   Domestic
SpectraSite Mexico Subsidiaries or Foreign SpectraSite Mexico Subsidiaries.  All
of the  issued  and  outstanding  Equity  Interests  of  the  Borrower  and  the
Designated  Subsidiaries  have been duly  authorized  and validly issued and are
fully paid and  nonassessable,  and are free and clear of all Liens  (except for
Permitted Liens).  None of such Equity Interests has been issued in violation of
the Securities  Act, or the securities,  "Blue Sky" or other  Applicable Laws of
any applicable  jurisdiction.  As of the Agreement Date,  except as set forth on
Schedule 5.1(c), neither the Borrower nor any of the Designated Subsidiaries has
outstanding any stock or securities  convertible into or exchangeable for any of
its  Equity  Interests,  nor are  there  any  preemptive  or  similar  rights to
subscribe  for or to  purchase,  or any  other  rights  to  subscribe  for or to
purchase,  or any options for the purchase of, or any  agreements  providing for
the issuance (contingent or otherwise) of, or any calls, commitments,  or claims
of any  character  relating  to, any of such  Equity  Interests  or any stock or
securities convertible into or exchangeable for any of such Equity Interests. As
of the  Agreement  Date,  except as set forth on  Schedule  5.1(c),  neither the
Borrower nor any of the  Designated  Subsidiaries  is subject to any  obligation
(contingent  or otherwise)  to repurchase or otherwise  acquire or retire any of
its Equity Interests or to register any of its Equity  Interests,  and there are
no  agreements  restricting  the transfer of any Equity  Interests of either the
Borrower or any of the Designated Subsidiaries or restricting the ability of any
Designated Subsidiary from making  distributions,  dividends or other Restricted
Payments to the  Borrower.  Except as set forth on Schedule  5.1(c),  within the
five (5) year period  immediately  preceding  the  Agreement  Date,  neither the
Borrower nor any of the Designated Subsidiaries has changed its name nor has the
Borrower nor any of the Designated  Subsidiaries  transacted  business under any
other name or trade name.

                    (d) Compliance  with Other Loan  Documents and  Contemplated
Transactions.  The execution,  delivery and  performance by each of Holdco,  the
Borrower and each of the Designated  Subsidiaries  of this Agreement and each of
the  other  Loan  Documents  to  which it is a party in  accordance  with  their
respective terms, and the consummation of the transactions  contemplated  hereby
and  thereby,  do not and will  not (i) with  respect  to any  Material  Towers,
require  any  consent  or  approval,  governmental  or  otherwise,  not  already
obtained, (ii) violate in any material respect Applicable Law respecting Holdco,
the Borrower or any Designated Subsidiary (including, without limitation, the

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Communications Act or any rule, regulation or written policy of the FCC, the FAA
or any other grantor of a Necessary  Authorization  with respect to any Material
Towers),  (iii)  conflict  with,  result in a breach of, or constitute a default
under the certificate or articles of  incorporation,  by-laws or other governing
documents of Holdco, the Borrower or of any Designated Subsidiary, or, except as
set forth on Schedule 5.1(h) hereof,  in any material respect under any material
indenture,  agreement, or other instrument, to which Holdco, the Borrower or any
Designated  Subsidiary  is a party or by which  any of them or their  respective
properties  may be  bound,  including,  without  limitation,  the  Holdco  Notes
Indentures,  (iv) subject to the filing of post-consummation name change notices
with the FCC,  conflict with,  result in a breach of, or constitute a default or
violation  of, the terms and  conditions  of any  Necessary  Authorization  with
respect to any  Material  Towers,  or (v) result in or require  the  creation or
imposition  of any  Lien  upon or with  respect  to any  property  now  owned or
hereafter   acquired  by  Holdco,   the  Borrower  or  any  of  the   Designated
Subsidiaries, except for Permitted Liens.

                    (e)  Business.  The  Borrower  and  each  of the  Designated
Subsidiaries  are engaged in the Tower  Operations and in the Other  Operations,
and in business activities related thereto.

                    (f) Necessary Authorizations,  Etc. The Borrower and each of
the Designated Subsidiaries have obtained all Necessary  Authorizations,  except
for such  Necessary  Authorizations  the  failure  to  obtain  which  would  not
reasonably be expected to have,  individually or in the aggregate,  a Materially
Adverse Effect,  and all of such Necessary  Authorizations are in full force and
effect,  and  the  Borrower  and  each  of the  Designated  Subsidiaries  are in
compliance in all material respects with the provisions thereof. Except as would
not  reasonably  be  expected  to  have,  individually  or in the  aggregate,  a
Materially Adverse Effect, (i) no Necessary  Authorization is the subject of any
pending  or,  to the best of the  Borrower's  knowledge,  threatened  attack  or
revocation,  and (ii) the Borrower is not aware of any fact or  condition  which
would  constitute  grounds for any  governmental  or other  licensing  authority
(including,  without  limitation,  the  FCC and the  FAA)  to deny  any  pending
application for any Necessary Authorization, to suspend, revoke, modify or annul
any Necessary  Authorizations or to impose any financial penalty on the Borrower
or any of the Designated Subsidiaries.

                    (g) Compliance  with Law;  Absence of Default.  Except where
such  violation  or the  failure to be in  compliance  would not  reasonably  be
expected to have, individually or in the aggregate, a Materially Adverse Effect,
Holdco,  the  Borrower  and  each  of  the  Designated  Subsidiaries,   and  the
construction, ownership and operation of the Towers and the conduct of the Tower
Operations by the Borrower and the  Designated  Subsidiaries,  are in compliance
with all,  and do not violate  any,  (i)  Applicable  Laws  (including,  without
limitation,  all rules and  regulations  promulgated  by the FCC and/or the FAA)
and/or (ii) provisions of the certificates or articles of incorporation, by-laws
and other governing  documents of Holdco,  the Borrower or any of the Designated
Subsidiaries.  No event has  occurred  or failed  to occur  (including,  without
limitation,  any  matter  which  could  create a  Default  or  Event of  Default
hereunder  by  cross-default)  which  has  not  been  remedied  or  waived,  the
occurrence or non-occurrence of which  constitutes,  or with the passage of time
or giving of notice or both would  constitute,  (x) an Event of Default or (y) a
material default by Holdco,  the Borrower or any of the Designated  Subsidiaries
under any material indenture, agreement or other instrument,  including, without
limitation,  the Holdco Notes Indentures,  or any judgment,  decree or order, to
which Holdco, the Borrower or any of the Designated Subsidiaries is a party or

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by which Holdco,  the Borrower or any of the Designated  Subsidiaries  or any of
their  respective  properties  may be bound or  affected.  None of  Holdco,  the
Borrower  or any of the  Designated  Subsidiaries  is a party to or bound by any
contract or  agreement  continuing  after the  Agreement  Date,  or bound by any
Applicable  Law, that could  reasonably be expected to have,  individually or in
the aggregate, a Materially Adverse Effect.

                    (h)  Title  to  Assets.  The  Borrower  and  the  Designated
Subsidiaries each has good and legal title to, or a valid leasehold interest in,
all of its respective material Assets, and none of such Assets is subject to any
Liens,  except for Permitted Liens. Except for financing  statements  evidencing
Permitted Liens, no financing  statement under the Uniform Commercial Code as in
effect in any jurisdiction and no other filing which names Holdco,  the Borrower
or any of the Designated  Subsidiaries as debtor, or which covers or purports to
cover any of the Assets of the Borrower or any of the  Designated  Subsidiaries,
is currently effective and on file in any state or other jurisdiction,  and none
of Holdco,  the Borrower or any of the  Designated  Subsidiaries  has signed any
such financing  statement or filing or any security  agreement  authorizing  any
secured party thereunder to file any such financing  statement or filing.  As of
the Agreement Date, except as set forth on Schedule 5.1(h),  none of Holdco, the
Borrower  or any of the  Designated  Subsidiaries  is a  party  to any  material
contract,  instrument or agreement  (including,  without limitation,  any of the
Necessary  Authorizations)  restricting  the ability of Holdco,  the Borrower or
such Designated Subsidiary,  as applicable,  to enter into an agreement by which
Holdco, the Borrower or such Designated Subsidiary,  as applicable,  agrees that
it shall not create, assume, incur or permit to exist or be created, directly or
indirectly, any Lien on its Assets.

                    (i)  Litigation.  As of the  Agreement  Date,  except as set
forth on Schedule 5.1(i) attached  hereto,  there is no material  action,  suit,
application,  complaint, petition, revocation,  proceeding or investigation,  at
law or in  equity,  or any  material  order,  decree or  judgment,  in effect or
pending against, or, to the best of the Borrower's knowledge, threatened against
Holdco,  the  Borrower  or any of the  Designated  Subsidiaries  or any of their
respective  properties  and assets  (including,  without  limitation,  any Tower
Assets)  in any court or before any  arbitrator  of any kind or before or by any
governmental body (including,  without  limitation,  the FCC and/or the FAA). No
action, suit, proceeding or investigation,  at law or in equity, or any material
order, decree or judgment,  in effect or pending against, or, to the best of the
Borrower's  knowledge,  threatened  against  Holdco,  the Borrower or any of the
Designated  Subsidiaries  or any  of  their  respective  properties  and  assets
(including,  without  limitation,  any Tower  Assets) in any court or before any
arbitrator of any kind or before or by any governmental body (including, without
limitation, the FCC and/or the FAA) (i) calls into question the validity of this
Agreement or any of the other Loan Documents,  (ii) could reasonably be expected
to have a Materially  Adverse Effect,  or (iii) could  reasonably be expected to
restrict in any  material  manner the  ownership  or  operation  of any Material
Towers.

                    (j) Taxes.  All federal and material state,  local and other
tax returns  (including  information  returns),  or any extensions  thereof,  of
Holdco, the Borrower and each of the Designated  Subsidiaries required by law to
be filed have been duly filed and all  federal  and  material  state,  local and
other taxes and impositions,  including, without limitation,  withholding taxes,
assessments  and other  governmental  charges or levies  required  to be paid by
Holdco,  the  Borrower or any of the  Designated  Subsidiaries  or imposed  upon
Holdco,  the  Borrower  or any of the  Designated  Subsidiaries  or any of their
respective  properties,  income,  profits or assets,  which are due and payable,
have been paid, except any such taxes (i) the payment of which Holdco, the

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<PAGE>   83

Borrower or any of the Designated  Subsidiaries is diligently contesting in good
faith by appropriate  proceedings,  (ii) for which  reserves in conformity  with
GAAP have been provided on the books of Holdco,  the Borrower or the  applicable
Designated  Subsidiary,  and (iii) as to which no Lien,  other than a  Permitted
Lien, has attached and no foreclosure,  distraint,  sale or similar  proceedings
have been commenced. The charges,  accruals and reserves on the books of Holdco,
the Borrower and each of the Designated  Subsidiaries in respect of any taxes or
other governmental charges are in conformity with GAAP.

                    (k)  Financial  Information.  The Borrower has  furnished or
caused to be furnished to the Credit  Parties (i) audited  financial  statements
for Holdco on a consolidated  basis with its Subsidiaries which are complete and
correct in all material  respects and present fairly in all material respects in
accordance  with GAAP the financial  position of Holdco and its  Subsidiaries on
and as at December  31, 1999 and the results of  operations  for the period then
ended and (ii) unaudited financial statements for Holdco on a consolidated basis
with its  Subsidiaries  which are complete and correct in all material  respects
and present fairly in all material  respects in accordance with GAAP (subject to
normal year end adjustments and the absence of footnotes) the financial position
of Holdco and its  Subsidiaries  on and as at September 30, 2000 and the results
of operations for the period then ended (the "Financial Statements").  As of the
Agreement  Date,  none  of  Holdco,  the  Borrower  or  any  of  the  Designated
Subsidiaries has any material liabilities,  contingent or otherwise,  other than
(A) as disclosed in the Financial Statements, (B) as set forth or referred to in
this  Agreement,  (C) those which have been  incurred in the ordinary  course of
business since  September 30, 2000, or (D) those  permitted  pursuant to Section
8.1. The Projections  represent the Borrower's  reasonable estimate of projected
future operations as of the Agreement Date, and as of the Agreement Date, to the
best of the Borrower's  knowledge,  there exist no facts or circumstances  which
the Borrower believes could be reasonably  likely to cause a materially  adverse
change in the Projections.

                    (l) No Adverse  Change.  Since December 31, 1999,  there has
occurred no event which has had or which could  reasonably be expected to have a
Materially Adverse Effect.

                    (m) ERISA.  Each Plan that is an "employee  pension  benefit
plan" within the meaning of ERISA Section 3(32)  maintained,  or contributed to,
by the  Borrower or any of the  Designated  Subsidiaries,  or any of their ERISA
Affiliates,  as of the  Agreement  Date is listed on  Schedule  5.1(m)  attached
hereto.  Each of such Plans is in compliance  in all material  respects with its
terms,  ERISA  and the Code.  None of such  Plans  has a  material  `accumulated
funding  deficiency'  within  the  meaning  of ERISA or the  Code.  Neither  the
Borrower  nor any of the  Designated  Subsidiaries  nor any of their  respective
ERISA Affiliates has incurred any material liability to the PBGC (other than the
payment of premiums  imposed by Title IV of ERISA) in  connection  with any such
Plan.  The  assets of each such Plan  which is  subject to Title IV of ERISA are
sufficient to provide the benefits under such Plan if such Plan were  terminated
on the date hereof.  No  Reportable  Event has occurred with respect to any such
Plan. No party in interest, fiduciary, trustee or administrator of any such Plan
or trust created  thereunder has engaged in a `prohibited  transaction' (as such
term is defined in Section 406 of ERISA or Section 4975 of the Code) which would
subject the Borrower,  the Designated  Subsidiaries  or any of their  respective
ERISA  Affiliates  to a material  tax on  `prohibited  transactions'  imposed by
Section  4975 of the Internal  Revenue  Code.  No party in interest,  fiduciary,
trustee or administrator of any such Plan or trust created thereunder has

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<PAGE>   84

committed a material  breach of its fiduciary duty or knowingly  participated in
any  violation  of ERISA  which  would  subject  the  Borrower,  the  Designated
Subsidiaries or any of their  respective  ERISA Affiliates to a material penalty
under Section 502 of ERISA. As of the Agreement Date, none of the Borrower,  the
Designated  Subsidiaries  or any  of  their  respective  ERISA  Affiliates  is a
participant in or obliged to make any payment to a Multiemployer Plan. As of the
Agreement Date, except as disclosed in any financial  statements under Financial
Accounting  Standard  106 or  required  by  Sections  601  through 609 of ERISA,
neither  the  Borrower  nor any of the  Designated  Subsidiaries  has  made  any
material oral or written commitments to provide  post-retirement  health or life
insurance coverage with respect to any former or current employee.  The Borrower
and the Designated  Subsidiaries and ERISA  Affiliates have properly  classified
individuals  providing  services  to the  Borrower  or  any  of  the  Designated
Subsidiaries or ERISA  Affiliates as employees or  non-employees,  except to the
extent that a misclassification would not result in a Materially Adverse Effect.

                    (n)  Compliance  with  Regulations  U  and  X.  Neither  the
Borrower nor any of the Designated  Subsidiaries  is engaged  principally in, or
has as one of its important activities,  the business of purchasing or carrying,
or extending credit for the purpose of purchasing or carrying,  any margin stock
within  the  meaning of  Regulations  U and X of the Board of  Governors  of the
Federal Reserve System.

                    (o) Investment  Company Act;  Public Utility Holding Company
Act.  None of Holdco,  the  Borrower or any of the  Designated  Subsidiaries  is
required to register under the provisions of the Investment Company Act of 1940,
as amended, and neither the entering into or performance by the Borrower of this
Agreement  nor the issuance of the Notes  violates any  provision of such Act or
requires any consent,  approval or authorization  of, or registration  with, the
Securities and Exchange  Commission or any other  governmental or public body or
authority  pursuant to any provisions of such Act. None of Holdco,  the Borrower
or any of the Designated  Subsidiaries  is a "public  utility  holding  company"
within  the  meaning of the  Public  Utility  Holding  Company  Act of 1935,  as
amended.

                    (p)  Securities  Laws.  Except  as would not  reasonably  be
expected to have, individually or in the aggregate, a Materially Adverse Effect,
Holdco,  the  Borrower,  each of the  Designated  Subsidiaries  and, to the best
knowledge  of  Holdco,  the  Borrower  and  the  Designated  Subsidiaries,   any
underwriters, sales agents, representatives or brokers representing or acting on
behalf of Holdco,  the  Borrower  or any of the  Designated  Subsidiaries,  have
complied with all federal and state securities laws in connection with the offer
and sale of stock or other equity  interests  in Holdco,  the Borrower or any of
the Designated Subsidiaries.

                    (q)  Intellectual  Property.  The  Borrower  and each of the
Designated  Subsidiaries  owns or possesses  the valid right to use all material
patents,  patent  applications,   patent  and  know-how  licenses,   inventions,
technology, permits, trademark registrations and applications,  product designs,
applications,  processes, trademarks, service marks, trade names, copyrights and
licenses and rights in respect of the  foregoing,  set forth on Schedule  5.1(q)
attached hereto,  which are used or necessary for the conduct of its business as
now conducted or hereafter proposed to be conducted,  without any known conflict
with the rights of others and free and clear of any Liens,  other than Permitted
Liens.  All such  licenses  and  rights  with  respect to  patents,  trademarks,
trademark rights,  trade names, trade name rights,  service marks and copyrights
are in full force and effect in all  material  respects,  and are not subject to
any pending or, to the best knowledge of the Borrower, threatened attack or

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<PAGE>   85

revocation,  in any case  except as would  not be  reasonably  expected  to have
individually or in the aggregate, a Materially Adverse Effect.

                    (r)   Accuracy  and   Completeness   of   Information.   All
information, reports, prospectuses and other papers and data relating to Holdco,
the Borrower or any of the Designated  Subsidiaries  (other than the Projections
which are  covered  by item (k) above)  furnished  in writing by or on behalf of
Holdco, the Borrower or any of the Designated  Subsidiaries to any of the Credit
Parties  were,  at the time  furnished,  complete  and  correct in all  material
respects to the extent  necessary  to give the Credit  Parties true and accurate
knowledge of the subject matter.

                    (s) Agreements with Affiliates and Management Agreements. As
of the Agreement Date,  except as set forth on Schedule 5.1(s) attached  hereto,
neither the Borrower nor any of the Designated Subsidiaries has (i) any material
written  agreements  or binding  arrangements  of any kind with any Affiliate or
(ii) any material  management or consulting  agreements of any kind, not entered
into in the ordinary course of business.

                    (t)  Environmental  Matters.   Except  as  is  described  on
Schedule 5.1(t) attached hereto or as,  individually or in the aggregate,  could
not reasonably be expected to have a Materially Adverse Effect:

                         (i) None of the Properties  contains,  in, on or under,
any  Hazardous  Materials  except (A) in such  quantities  as  required  for the
conduct in the ordinary course of the Borrower's business or, to the best of the
Borrower's knowledge,  the business of the fee owner of such Property,  and then
only in  compliance  with  applicable  Environmental  Laws, or (B) in amounts or
circumstances  that do not give rise to material  liability under  Environmental
Laws.

                         (ii) The Borrower and the Designated  Subsidiaries  are
in compliance with all applicable  Environmental Laws, and there is no condition
which could  interfere with the continued  operation of any of the Properties in
compliance  with  Environmental  Laws or impair the  financial  condition of the
Borrower.

                         (iii)  Neither the Borrower  nor any of the  Designated
Subsidiaries  has received from any  Governmental  Authority or any other Person
any written complaint, notice of violation, alleged violation,  investigation or
advisory  action  or  notice  of  potential   liability   regarding  matters  of
environmental  protection or permit  compliance under  applicable  Environmental
Laws with regard to the  Properties,  and neither  the  Borrower  nor any of the
Designated   Subsidiaries   is  aware  that  any   Governmental   Authority   is
contemplating  delivering to the Borrower or any of the Designated  Subsidiaries
any such notice.  There is no condition  or  circumstance  currently or with the
passage of time that could  reasonably  be  expected to present the basis of any
such  notice.  There  has  been no  pending  or,  to the  Borrower's  knowledge,
threatened complaint, notice of violation,  alleged violation,  investigation or
notice of potential liability under Environmental Laws with regard to any of the
Properties.

                         (iv)  Hazardous  Materials  have  not  been  generated,
treated,  stored, disposed of, at, on or under any of the Properties in material
violation  of  Environmental  Laws,  or in a  manner  that  could  give  rise to
liability  under  Environmental  Laws  nor  have any  Hazardous  Materials  been
transported or disposed of from any of the Properties to any other location in

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<PAGE>   86

violation  of  Environmental  Laws  nor in a manner  that  could  reasonably  be
anticipated to give rise to liability under Environmental Laws.

                         (v)  Neither  the  Borrower  nor any of the  Designated
Subsidiaries is a party to any governmental  administrative  actions or judicial
proceedings  pending  under any  Environmental  Law with  respect  to any of 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 Law with respect to any of the
Properties.

                         (vi) There has been no release of  Hazardous  Materials
into  the  environment  at or from any of the  Properties,  or  arising  from or
relating  to  the   operations  of  the  Borrower  or  any  of  the   Designated
Subsidiaries,  in violation of Environmental  Laws or in amounts that could give
rise to liability under Environmental Laws.

                    (u) Payment of Wages;  Labor Matters.  The Borrower and each
of the Designated  Subsidiaries  are in compliance with the Fair Labor Standards
Act, as amended,  in all  material  respects,  and the  Borrower and each of the
Designated  Subsidiaries have complied in all material respects with all minimum
and overtime wage requirements  applicable to their respective employees.  As of
the Agreement Date, except as disclosed on Schedule 5.1(u),  except as would not
be reasonably expected to have,  individually or in the aggregate,  a Materially
Adverse  Effect:  (i) no labor  contract  to which  the  Borrower  or any of the
Designated  Subsidiaries  is a party or is  otherwise  subject is  scheduled  to
expire during the term of this  Agreement;  (ii) neither the Borrower nor any of
the  Designated  Subsidiaries  has,  within the two (2) year period  immediately
preceding the Agreement Date,  taken any action which would have  constituted or
resulted in a `plant closing' or `mass layoff' within the meaning of the Federal
Worker  Adjustment  and  Retraining  Notification  Act of  1988  or any  similar
applicable  federal,  state or local  law,  and the  Borrower  does not have any
reasonable  expectation that it will incur any material liability under such Act
at any time during the term of this  Agreement;  (iii) all of the  operations of
the  Borrower  and the  Designated  Subsidiaries  are  conducted in all material
respects in compliance with all applicable rules and regulations  promulgated by
the  Occupational  Safety  and  Health   Administration  of  the  United  States
Department  of  Labor;  (iv)  neither  the  Borrower  nor any of the  Designated
Subsidiaries is a party to any material labor dispute (other than any immaterial
disputes  with the  Borrower's  or such  Designated  Subsidiary's  employees  as
individuals  and not affecting the  Borrower's or such  Designated  Subsidiary's
relations  with any labor group or its workforce as a whole);  and (v) there are
no pending  or, to the  Borrower's  knowledge,  threatened  strikes or  walkouts
relating to any labor  contracts to which the Borrower or any of the  Designated
Subsidiaries is a party or is otherwise subject.  As of the Agreement Date, none
of the  employees of the  Borrower or any of the  Designated  Subsidiaries  is a
party to any  collective  bargaining  agreement  with the Borrower or any of the
Designated Subsidiaries.

                    (v) Priority. The Security Interest is a valid and perfected
first priority (except for Permitted  Liens) security  interest in substantially
all of the Collateral in favor of the Collateral  Agent,  for the benefit of the
Credit  Parties,  securing,  in  accordance  with  the  terms  of  the  Security
Documents,  the  outstanding  Obligations.  The Collateral is not subject to any
Liens other than Permitted  Liens.  The Liens created by the Security  Documents
are enforceable as security for the  outstanding  Obligations in accordance with
their terms with respect to the Collateral except to the extent that enforcement
thereof may be limited by bankruptcy, insolvency, liquidation, reorganization,

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reconstruction and other similar laws affecting enforcement of creditors' rights
generally and to the application of general equitable principles.

                    (w) Indebtedness. Except for Permitted Debt, none of Holdco,
the Borrower or any of the Designated  Subsidiaries has  outstanding,  as of the
Agreement  Date,  and after  giving  effect to the initial  Advance of the Loans
hereunder on the Agreement Date, any Indebtedness.

                    (x)  Investments.  As of the  Agreement  Date,  none  of the
Borrower or any of the Designated  Subsidiaries owns any Equity Interests in, or
has  outstanding  loans or advances to, or guaranties of the obligations of, any
Person except as reflected in the Financial Statements, or disclosed on Schedule
5.1(c) or Schedule 5.1(x) attached hereto. Schedule 5.1(x) sets forth, as of the
Agreement  Date,  whether  each  Investment  identified  thereon  constitutes  a
Restricted  Investment,  an Unrestricted  Investment,  a Foreign  Investment,  a
Domestic   SpectraSite  Mexico  Investment  or  a  Foreign   SpectraSite  Mexico
Investment  and the amount that has been  Invested by members of the  Restricted
Group in each such Investment as of the Agreement Date.

                    (y) Material Contracts.  Schedule 5.1(y) contains a complete
list, as of the Agreement  Date, of each contract,  agreement or commitment (the
"Material   Contracts")   to  which  the  Borrower  or  any  of  the  Designated
Subsidiaries is a party the termination of which could reasonably be expected to
have a Materially  Adverse Effect,  and, upon the request of the Arrangers,  the
Borrower  will  provide  the  Arrangers  with a copy  of any  such  contract  or
agreement.  Schedule 5.1(y) further  identifies,  as of the Agreement Date, each
Material  Contract which requires  consent to the granting of a Lien in favor of
the  Collateral  Agent on the rights of the  Borrower  or any of the  Designated
Subsidiaries thereunder.

                    (z)  Broker's  or  Finder's  Commissions.   No  broker's  or
finder's fee or  commission  will be payable with respect to the issuance of the
Notes,  and no other similar fees or commissions will be payable by the Borrower
or any of the Designated  Subsidiaries for any other services rendered to any of
them ancillary to the transactions  contemplated  herein except to the Arrangers
and their respective Affiliates.

                    (aa) SBC  Lease  Documents;  Holdco  Notes  Indentures.  The
Borrower has provided to the  Arrangers  (i) correct and complete  copies of the
SBC Lease  Documents  and (ii) a correct and complete copy of each of the Holdco
Notes Indentures and the notes and other  agreements and documents  executed and
delivered pursuant thereto. To the best of the Borrower's knowledge, none of the
representations  and  warranties  made by or with respect to any of Holdco,  the
Borrower and the Borrower's Subsidiaries as set forth in the SBC Lease Documents
is incorrect in any material respect.

                    (bb)  Solvency.  As of the  Agreement  Date and after giving
effect to the  transactions  contemplated  by this  Agreement and the other Loan
Documents,  (i) the  property of the  Borrower,  at a fair  valuation on a going
concern basis,  will exceed its debt;  (ii) the capital of the Borrower will not
be unreasonably  small to conduct its business;  and (iii) the Borrower will not
have incurred debts, or have intended to incur debts,  beyond its ability to pay
such debts as they mature.  For purposes of this Section  5.1(bb),  "debt" means
any liability on a claim, and "claim" means (i) the right to payment, whether or
not  such  right  is  reduced  to  judgment,  liquidated,  unliquidated,  fixed,
contingent,  matured,  unmatured,   undisputed,  legal,  equitable,  secured  or
unsecured, or (ii) the right to an equitable remedy for breach of performance if

                                       81
<PAGE>   88

such breach  gives rise to a right to  payment,  whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent,  matured, unmatured,
undisputed, secured or unsecured.

                    (cc)  Real  Property  and  Tower  Sites.  To the best of the
Borrower's  knowledge,  each  of the  material  leases  of the  Borrower  or the
Designated Subsidiaries is valid,  enforceable and in full force and effect. The
Borrower or a Designated  Subsidiary,  as applicable,  is the sole holder of the
lessee's  interests  under each lease to which it is a party and,  except to the
extent  not  reasonably  likely to have,  individually  or in the  aggregate,  a
Materially  Adverse Effect, has the right to pledge and assign the same. Neither
the  Borrower  nor any of the  Designated  Subsidiaries  has made any  pledge or
assignment  of any of its rights  under any such leases  except  pursuant to the
Security Documents and except for the Nextel  Subordinated Lien, and there is no
default or condition which, with the passage of time or the giving of notice, or
both,  would constitute a material default on the part of the Borrower or any of
the Designated  Subsidiaries  or, to the best of the Borrower's  knowledge,  any
other party, under such leases with respect to any Material Towers.

          Section 5.2  Survival of  Representations  and  Warranties,  etc.  All
representations  and  warranties  made under this  Agreement  and the other Loan
Documents  shall be deemed  to be made,  and  shall be true and  correct  in all
material  respects,  at and as of the  Agreement  Date  and on the  date of each
Advance  and on the date of  issuance  of each  Letter of Credit,  except to the
extent  expressly  applicable  only to an  earlier  date or no  longer  true and
correct as a result of actions or changes in  accordance  with the terms hereof.
All representations and warranties made under this Agreement shall survive,  and
not be waived by, the execution hereof by the Credit Parties,  any investigation
or inquiry by any Credit Party,  or the making of any Advance or the issuance of
any Letter of Credit under this Agreement.

                          ARTICLE 6 - General Covenants

          So   long  as  any  of  the   Obligations   (other   than   contingent
indemnification  obligations) are outstanding and unpaid,  or the Borrower shall
have the right to borrow  hereunder  (whether or not the conditions to borrowing
have been or can be  fulfilled),  or any  Letter of Credit is  outstanding,  and
unless  the  Majority  Lenders,  or such  greater  number of  Lenders  as may be
expressly provided herein, shall otherwise consent in writing:

          Section 6.1 Preservation of Existence and Similar  Matters.  Except as
permitted in Section 8.5 hereof,  the Borrower  will, and will cause each of the
Designated Subsidiaries to:

                         (i)  preserve  and  maintain  its  existence,   rights,
franchises,  licenses  and  privileges  in the  state  of its  incorporation  or
organization and in each other state in which it operates a material part of its
business, including, without limitation, all Necessary Authorizations, except as
would not reasonably be expected to have,  individually  or in the aggregate,  a
Materially Adverse Effect; and

                         (ii) qualify and remain  qualified and authorized to do
business in each  jurisdiction  in which the character of its  properties or the
nature of its business requires such qualification or authorization except where
the failure to be qualified or authorized  would reasonably be expected to have,
individually or in the aggregate, a Materially Adverse Effect.

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<PAGE>   89

          Section 6.2 Business;  Compliance  with  Applicable  Law. The Borrower
will,  and will cause each of the Designated  Subsidiaries  to, engage solely in
the  business  of the Tower  Operations,  the Other  Operations  and in  related
business  activities.  The Borrower  will, and will cause each of the Designated
Subsidiaries to, comply with the requirements of all Applicable Laws (including,
without limitation,  all tower marking and lighting  requirements of the FAA and
the FCC) except where the failure to so comply would not  reasonably be expected
to have, individually or in the aggregate, a Materially Adverse Effect.

          Section 6.3  Maintenance of Properties and Assets.  The Borrower will,
and will cause each of the Designated  Subsidiaries to, (a) maintain or cause to
be maintained in the ordinary  course of business in good repair,  working order
and condition  (reasonable  wear and tear excepted) all  properties  (including,
without  limitation,  all Towers) used in their respective  businesses  (whether
owned or held under  lease),  and from time to time make or cause to be made all
needed and appropriate repairs, renewals,  replacements,  additions, betterments
and improvements  thereto except where the failure to do so would not materially
adversely  affect or apply to any Material  Towers,  and (b) obtain and maintain
and preserve in full force and effect,  and renew and extend as  necessary,  all
Material Contracts and all Necessary  Authorizations  with respect to the Towers
except  where the  failure to do so would not  reasonably  be  expected to have,
individually or in the aggregate, a Materially Adverse Effect.

          Section 6.4  Accounting  Methods and Financial  Records.  The Borrower
will  maintain,  on a  consolidated  basis  with its  Subsidiaries,  a system of
accounting  established and  administered  in accordance with GAAP  consistently
applied,  keep adequate  records and books of account in which complete  entries
will be made in accordance with such accounting principles  consistently applied
and  reflecting  all  transactions  required to be reflected by such  accounting
principles,  and keep  accurate  and  complete  records of the  Collateral.  The
Borrower and the Designated  Subsidiaries  will maintain a fiscal year ending on
December 31.

          Section 6.5  Insurance.  The Borrower will, and will cause each of the
     Designated Subsidiaries to:

               (a) Maintain  insurance,  including,  but not limited to,  public
liability  coverage  insurance,  from responsible  companies in such amounts and
against such risks to the Borrower and each of the Designated Subsidiaries as is
prudent and customary for Persons in the Tower Operations  business  (including,
without limitation, larceny, embezzlement, employee fidelity, and other criminal
misappropriation  insurance and insurance  against claims for personal or bodily
injury, death or property damage);

               (b) Keep their respective Assets (including,  without limitation,
broadcast Towers, but excluding all other Towers and all motor vehicles) insured
by  responsible  companies  against  loss or  damage by fire,  theft,  burglary,
pilferage,  loss in transit,  explosions and hazards insured against by extended
coverage,   in  amounts  and  scope  of  coverage  which  are  prudent  for  the
communications  tower  industry,  in  accordance  with industry  standards,  all
premiums thereon to be paid by the Borrower and the Designated Subsidiaries;

               (c) Require that each casualty and liability insurance policy for
the Borrower and the  Designated  Subsidiaries  provide for at least thirty (30)
days' prior written  notice to the  Collateral  Agent of any  termination  of or
proposed  cancellation or non-renewal of such policy,  or material  reduction in
coverage, and name the Collateral Agent (for the benefit of the Credit Parties)

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as additional  named loss payee to the extent of the  Obligations and additional
named insured; and

               (d) In the event of a casualty  loss covered by the  insurance of
the Borrower or any Designated  Subsidiary,  Net Cash Proceeds of such insurance
of  $10,000,000  or less paid in respect of such loss shall be paid directly to,
and may be retained  by, the  Borrower.  Net  Proceeds of insurance in excess of
$10,000,000  shall be paid to the Collateral Agent and shall be applied to repay
the Loans to the extent set forth in Section  2.7(b) or Section 10.3 hereof,  as
appropriate, and (ii) thereafter be applied as provided in Section 2.7(b).

          Section 6.6 Payment of Taxes and Claims.  The Borrower  will, and will
cause each of the  Designated  Subsidiaries  to, pay and  discharge all material
taxes,  including,  without  limitation,   withholding  taxes,  assessments  and
governmental  charges or levies required to be paid by them or imposed upon them
or their income or profits or upon any  properties  belonging to them,  prior to
the date on which  penalties  attach  thereto,  and all lawful claims for labor,
materials and supplies which, if unpaid,  might become a Lien or charge upon any
of their properties; except that no such tax, assessment,  charge, levy or claim
need be paid which is being  diligently  contested in good faith by  appropriate
proceedings  and for which reserves in conformity  with GAAP shall have been set
aside  on the  appropriate  books,  but  only so long as such  tax,  assessment,
charge,  levy or claim does not become a Lien or charge  other than a  Permitted
Lien and no foreclosure,  distraint, sale or similar proceedings shall have been
commenced. The Borrower will, and will cause each of the Designated Subsidiaries
to, timely file all material  information returns required by federal,  state or
local tax authorities.

          Section 6.7 Visits and Inspections.  The Borrower will, and will cause
each of the Designated  Subsidiaries  to, permit  representatives  of any Credit
Party at its expense,  during normal  business hours,  upon  reasonable  advance
notice to the Borrower or such  Designated  Subsidiary,  as  applicable,  to (a)
visit and inspect the properties of the Borrower or such Designated  Subsidiary,
(b)  inspect and make  extracts  from and copies of their  respective  books and
records,  and  (c)  discuss  with  their  respective  principal  officers  their
respective  businesses,  assets,  liabilities,  financial positions,  results of
operations and business prospects;  provided,  however, that notwithstanding the
foregoing  at any time after the  occurrence  and during  the  continuance  of a
Default or Event of Default,  any such visit or inspection by any Arranger shall
be at the  expense of the  Borrower.  The  Borrower  and each of the  Designated
Subsidiaries  will also permit  representatives  of any of the Lead Arrangers to
discuss with their  respective  auditors their  respective  businesses,  assets,
liabilities, financial positions, results of operations and business prospects.

          Section  6.8 Use of  Proceeds.  The  Borrower  will use the  aggregate
proceeds  of all  Advances  (a) to finance the SBC  Transaction,  (b) to finance
Permitted  Acquisitions  and  Permitted  Investments,  (c)  to  make  Restricted
Payments to Holdco  permitted  under Section 8.7 hereof,  (d) to provide funding
for the acquisition, leasing, construction/development, management and build-out
of Towers,  Tower  Sites,  Shared  Tenant  Infrastructure  Sites and other sites
related  to the  foregoing,  in each  case as  permitted  hereunder  and (e) for
working  capital  and  other  general  corporate  purposes  (including,  without
limitation,  fees and expenses  relating to the SBC  Transaction,  any Permitted
Acquisitions and any Permitted Investments, and the transactions contemplated by
this Agreement and the other Loan Documents).  No proceeds of Advances hereunder
shall be used for the purchase or carrying or the extension of credit for the

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purpose of  purchasing  or  carrying  any  margin  stock  within the  meaning of
Regulations U and X of the Board of Governors of the Federal Reserve System.

          Section  6.9  Real  Property.  With  respect  to each  parcel  of real
property,  whether  owned or leased  by the  Borrower  or any of the  Subsidiary
Guarantors on the Agreement Date or at any time thereafter  (including,  without
limitation,  any Tower Site),  the Borrower  shall,  and shall cause each of the
Subsidiary Guarantors, promptly to:

               (a) Execute and deliver to the  Collateral  Agent,  a  collateral
assignment of, to the extent permitted therein, any Tower Site Lease Agreements,
Tower Space Lease Agreements and/or Tower Site Management Contracts entered into
by the Borrower or any of the  Subsidiary  Guarantors  as lessor with respect to
such real  property.  The Borrower  shall also make  available to the Collateral
Agent,  upon request  therefor,  at the central location  referred to in Section
6.9(c)  hereof,  copies of all Tower Site Lease  Agreements,  Tower  Space Lease
Agreements and Tower Site Management  Agreements entered into by the Borrower or
any of the  applicable  Subsidiaries,  and to the  extent  that any  consent  is
required to the pledge or  assignment of any Tower Site Lease  Agreement,  Tower
Space Lease Agreement or Tower Site Management  Agreement by the Borrower or any
of the  Subsidiary  Guarantors  to the  Collateral  Agent  as  security  for the
Obligations,  the Borrower shall use commercially  reasonable  efforts to obtain
such consent in writing to the extent  reasonably  requested  by the  Collateral
Agent.

               (b) Execute and deliver to the Collateral  Agent, a Mortgage (or,
in the case of real property  acquired (or leased) prior to the Agreement  Date,
an amendment to, or amendment and restatement of, any Mortgage  delivered before
the Agreement  Date)  covering each such parcel of real property that has a fair
market value in excess of  $15,000,000  and the principal  use of which,  in the
ordinary course of the Borrower's  business,  is not as a Tower Site or a Shared
Tenant Infrastructure Site; provided,  however,  neither the Borrower nor any of
the Subsidiary  Guarantors  shall be required to grant to the Collateral Agent a
Mortgage in respect of any parcel of real  property  owned by the United  States
government or any agency thereof. All of the Mortgages shall be delivered by the
Borrower and the  Subsidiary  Guarantors to the  Collateral  Agent in recordable
form for the applicable jurisdiction.

               (c) In connection  with all  Mortgages  executed and delivered by
the  Borrower  or any of  the  Subsidiary  Guarantors  hereunder,  grant  to the
Collateral Agent and its designees access to all other documentation  reasonably
requested by the Collateral Agent (all of which shall be compiled in one central
location) in connection with each such grant or assignment,  including,  without
limitation,  policies  of title  insurance,  copies  of any  Phase I or Phase II
environmental audits, flood zone certificates,  financing statements and fixture
filings,  surveys and  appraisals,  in each case to the extent  available  to or
otherwise reasonably obtainable by the Borrower or the Subsidiary Guarantors.

               (d) The Collateral  Agent will release a Mortgage upon receipt of
written  notice from the Borrower  that the Tower Site Lease  Agreement  for the
property subject to such Mortgage has expired,  been terminated or such property
has been transferred in connection with a Permitted Disposition.

          Section 6.10 Indemnity. The Borrower, for itself and on behalf of each
of the Designated Subsidiaries,  agrees, jointly and severally, to indemnify and
hold  harmless  each  Indemnified  Party from and  against  any and all  claims,
liabilities, losses, damages, actions, reasonable attorneys' fees and expenses

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(as such fees and expenses are incurred) and demands by any party, including the
costs of  investigating  and defending such claims (a) resulting from any breach
or alleged breach by Holdco, the Borrower or any of the Designated  Subsidiaries
of any representation,  warranty,  or covenant made hereunder or under any other
Loan Document; (b) arising out of or in connection with (i) the Commitments, the
Loans or otherwise  under this Agreement or any other Loan Document  (including,
without  limitation,  the taking of  collateral  security for the  Obligations),
including  the use of the  proceeds  of Loans  hereunder  in any  fashion by the
Borrower  or any of its  Subsidiaries  or the  performance  of their  respective
obligations  under the Loan  Documents  by Holdco,  the  Borrower  or any of the
Borrower's  Subsidiaries,  (ii)  allegations of any  participation by the Credit
Parties,  or any of them,  in the affairs of Holdco,  the Borrower or any of the
Borrower's Subsidiaries, or allegations that any of them has any joint liability
with Holdco, the Borrower or any of the Borrower's  Subsidiaries for any reason,
or  (iii)  any  claims  against  the  Credit  Parties,  or any of  them,  by any
shareholder,  partner, or other investor in or lender to Holdco, the Borrower or
any of the  Borrower's  Subsidiaries,  by any  brokers or finders or  investment
advisers or investment  bankers  retained by Holdco,  the  Borrower,  any of the
Borrower's  Subsidiaries  or by  any  other  third  party,  arising  out  of the
Commitments,  the Loans or  otherwise  under  this  Agreement  or any other Loan
Document;  or (c) in connection with taxes (other than income taxes or any taxes
attributable  to a Credit  Party's  failure to comply with the  requirements  of
Section 2.13(b) (but only with respect to such Credit  Party)),  fees, and other
charges  payable in  connection  with the  Loans,  or the  execution,  delivery,
recording, and enforcement of this Agreement, the Security Documents (including,
without  limitation,  any Mortgage  whenever filed or recorded),  the other Loan
Documents,  and any  amendments  thereto  or  waivers  of any of the  provisions
thereof;  unless the Person seeking  indemnification  hereunder is determined in
such case to have acted with gross negligence or willful misconduct, in any case
by a final,  non-appealable  judicial order. The obligations of the Borrower and
the  Designated  Subsidiaries  under this  Section  6.10 are in addition to, and
shall not otherwise limit, any liabilities  which the Borrower or any Designated
Subsidiary  might  otherwise  have in connection  with any warranties or similar
obligations of the Borrower or such Designated Subsidiary in any other agreement
or instrument or for any other reason.  It is understood and agreed that, to the
extent not  precluded by a conflict of interest,  each  Indemnified  Party shall
endeavor to work  cooperatively  with the Borrower with a view to minimizing the
legal  and  other  expenses  associated  with  any  defense  and  any  potential
settlement  or  judgment.   To  the  extent   reasonably   practicable  and  not
disadvantageous  to any  Indemnified  Party,  it is  anticipated  that a  single
counsel  shall be used.  Settlement  of any claim or  litigation  involving  any
material  indemnified  amount  shall be subject to the  approval of the Borrower
(which approval shall not be unreasonably withheld).

          Section 6.11 Interest Rate  Hedging.  Within one hundred  eighty (180)
days from the Agreement  Date,  the Borrower shall have entered into one or more
Interest Hedge Agreements which fix or place a limit on the Borrower's  interest
obligations at interest rates reasonably  acceptable to the Administrative Agent
with  respect  to the Loans such that,  at all times  thereafter,  not less than
fifty  percent  (50%) of the  aggregate  amount of Funded  Debt of  Holdco,  the
Borrower and the  Borrower's  Subsidiaries  outstanding  shall be hedged or on a
fixed rate basis.  Each Interest  Hedge  Agreement  shall provide  interest rate
protection  for a period of the  lesser of (a) three (3) years  from the date of
such Interest Hedge  Agreement,  or (b) the period  remaining  until the Initial
Maturity  Date with respect to Interest  Rate Hedge  Agreements  entered into in
connection  with the  Revolving  Loans  and the  Tranche  A Loans  and the Final
Maturity  Date with respect to Interest  Rate Hedge  Agreements  entered into in
connection with the Tranche B Loans. All obligations of the Borrower to any

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Lender,  or any  Affiliate  of  any  Lender,  pursuant  to  any  Interest  Hedge
Agreement, shall be deemed to be part of the Obligations.

          Section 6.12 Environmental Matters.  Except as would not reasonably be
expected to have, individually or in the aggregate, a Materially Adverse Effect,
the conduct of the Borrower's and each of the Designated  Subsidiaries' business
operations  will  not  violate  any  Environmental   Laws  (including,   without
limitation,  any  rules  and  regulations  applicable  to the  Borrower  and the
Designated  Subsidiaries  relating to radiated power density maximum permissible
exposure   levels),   and  neither  the  Borrower  nor  any  of  the  Designated
Subsidiaries  will use any Hazardous  Materials at any of its places of business
except such  materials as are  incidental to the  Borrower's or such  Designated
Subsidiary's normal course of business,  maintenance and repairs,  and then only
in compliance with all applicable  Environmental  Laws. The Borrower and each of
the Designated Subsidiaries shall have, maintain,  apply for and/or timely renew
all permits required for the Towers and other business  operations at its places
of business or otherwise  except where the failure to do so would  reasonably be
expected to have, individually or in the aggregate, a Materially Adverse Effect.
The Borrower shall promptly  notify the Lead Arrangers in writing of (a) any and
all material enforcement,  cleanup, remedial,  removal, or other governmental or
regulatory  actions  instituted,  completed or threatened in writing pursuant to
any  applicable  Environmental  Law;  (b)  the  existence  of any  environmental
condition or  circumstances  known to the  Borrower;  and (c) all claims made or
threatened  by any third  party  against the  Borrower or any of the  Designated
Subsidiaries relating to damages, contribution, cost recovery compensation, loss
or injury  resulting from any Hazardous  Materials,  which,  in any case,  could
reasonably be expected to have,  individually or in the aggregate,  a Materially
Adverse  Effect.  The Borrower shall  promptly  notify the Lead Arrangers of any
material  remedial  action  taken  by the  Borrower  or  any  of the  Designated
Subsidiaries  pursuant to  Environmental  Laws with respect to the Borrower's or
such Designated Subsidiary's Towers or other business operations.

          Section 6.13 ERISA.  The Borrower  shall,  and shall cause each of the
Designated  Subsidiaries  to, at all  times  make,  or cause to be made,  prompt
payment of all material  contributions  required  under the terms of their Plans
and to meet the minimum  funding  standards  set forth in ERISA with  respect to
such Plans. The Borrower shall maintain,  and shall cause each of the Designated
Subsidiaries  to  maintain,  each of the Plans of  Borrower  and the  Designated
Subsidiaries in material  compliance with their terms and applicable  provisions
of ERISA and the Code.

          Section 6.14 Further Assurances. Holdco and the Borrower will promptly
cure,  or cause to be cured,  defects in the creation and issuance of any of the
Notes and the execution and delivery of the Loan Documents  (including,  without
limitation, this Agreement), resulting from any act or failure to act by Holdco,
the Borrower or any of the  Designated  Subsidiaries  or any employee or officer
thereof.  Holdco and the Borrower,  at their sole expense, will promptly execute
and deliver to the Credit Parties,  or cause to be executed and delivered to the
Credit  Parties,  all  such  other  and  further  documents,   agreements,   and
instruments in compliance with or accomplishment of the covenants and agreements
of Holdco,  the Borrower and the Designated  Subsidiaries  in the Loan Documents
(including,  without limitation, this Agreement), or to obtain any consents, all
as may be reasonably  necessary or appropriate in connection therewith as may be
reasonably requested.

          Section 6.15 Covenants Regarding Additional Collateral.

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               (a) Concurrently with (x) the consummation of each Acquisition by
the Borrower (whether  directly or indirectly) of any new Subsidiary  Guarantor,
(y) the formation of any new Subsidiary Guarantor,  or (z) the re-designation of
any Unrestricted  Subsidiary as a Restricted Subsidiary,  the Borrower will, and
will cause each of the  applicable  Subsidiaries  to,  provide to the Collateral
Agent the following:

                    (i) a  completed  questionnaire,  in the form of  Exhibit  X
attached hereto, with respect to such new Subsidiary Guarantor;

                    (ii) a  duly  executed  amendment  to  the  Borrower  Pledge
Agreement or the Subsidiary Pledge Agreement,  as applicable,  pursuant to which
all of the Equity  Interests in such new  Subsidiary  Guarantor held directly or
indirectly  by the  Borrower  shall  be  pledged  to  the  Collateral  Agent  as
additional  Collateral  securing the  Obligations  to be held by the  Collateral
Agent in  accordance  with the terms of the  Borrower  Pledge  Agreement  or the
Subsidiary  Pledge  Agreement,  as applicable,  together with all original share
certificates  representing  such Equity Interests and duly executed  certificate
powers (or, in the case of uncertificated Equity Interests,  any necessary UCC-1
financing statement forms);

                    (iii) a duly executed  supplement to the Subsidiary Guaranty
for such new Subsidiary Guarantor, together with all schedules thereto;

                    (iv) a duly executed  supplement to the Subsidiary  Security
Agreement for such new Subsidiary Guarantor, together with all schedules thereto
and all necessary UCC-1 financing statement forms;

                    (v) in the case of any new Subsidiary  Guarantor holding any
Equity Interests in any Designated Subsidiary or Restricted  Investment,  a duly
executed  supplement to the Subsidiary Pledge Agreement,  pursuant to which such
Subsidiary  Guarantor  shall  pledge to the  Collateral  Agent all of the Equity
Interests  held by it, whether now owned or hereafter  acquired,  in (A) each of
the  Subsidiary   Guarantors,   the  Restricted  Investments  and  the  Domestic
SpectraSite  Mexico  Investments and (B) each of the Foreign  Subsidiaries,  the
Foreign Investments,  the Foreign SpectraSite Mexico Subsidiaries (to the extent
constituting  Designated  Subsidiaries  hereunder)  and the Foreign  SpectraSite
Mexico  Investments  (but not to  exceed  sixty-six  percent  (66%) of the total
Equity Interests in any such Person);

                    (vi) a loan certificate from such new Subsidiary  Guarantor,
in substantially  the form attached hereto as Exhibit W, including a certificate
of incumbency with respect to each  Authorized  Signatory of such new Subsidiary
Guarantor,  together with the following  items: (A) a copy of the certificate or
articles of incorporation,  certificate of limited partnership or certificate of
organization  of such new  Subsidiary  Guarantor,  certified  to be complete and
correct  by the  Secretary  of  State  of  the  state  of  such  new  Subsidiary
Guarantor's  organization;  (B) a  certificate  of good  standing  for  such new
Subsidiary  Guarantor issued by the Secretary of State or similar state official
for the state in which such  Subsidiary  Guarantor is organized;  (C) a complete
and correct copy of the  by-laws,  partnership  agreement  or limited  liability
company or  operating  agreement  of such new  Subsidiary  Guarantor;  and (D) a
complete and correct copy of the resolutions of the board of directors, or other
appropriate  entity,  of such  new  Subsidiary  Guarantor  authorizing  such new
Subsidiary Guarantor to execute, deliver and perform the Loan Documents to which
it is a party;

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                    (vii) in the case of an Acquisition, a collateral assignment
of the Permitted Acquisition Documents with respect thereto in substantially the
form of the Assignments of Acquisition Documents; and

                    (viii)   all   other   documentation,   including,   without
limitation,  an Intellectual  Property Security  Agreement or any other security
agreement  covering  any  additional  intellectual  property  owned  by such new
Subsidiary Guarantor and one or more opinions of counsel reasonably satisfactory
to the Collateral Agent, which in the reasonable opinion of the Collateral Agent
is appropriate with respect to such transaction.

               (b) Concurrently  with (x) the consummation of each Investment by
the Borrower (whether  directly or indirectly) in any new Restricted  Investment
or any Domestic  SpectraSite  Mexico Investment or (y) the re-designation of any
Unrestricted Investment as a Restricted Investment,  the Borrower will, and will
cause each of the applicable Subsidiary Guarantors to, provide to the Collateral
Agent the following:

                    (i)  a  duly  executed  amendment  to  the  Borrower  Pledge
Agreement or the Subsidiary Pledge Agreement,  as applicable,  pursuant to which
all  of  the  Equity  Interests  held  by  the  Borrower  (whether  directly  or
indirectly) in such new  Restricted  Investment or Domestic  SpectraSite  Mexico
Investment  shall be pledged to the  Collateral  Agent as additional  Collateral
securing the  Obligations to be held by the Collateral  Agent in accordance with
the terms of the Borrower Pledge Agreement or the Subsidiary  Pledge  Agreement,
as applicable,  together with all original share certificates  representing such
Equity  Interests  and duly  executed  certificate  powers  (or,  in the case of
uncertificated Equity Interests, any necessary UCC-1 financing statement forms);

                    (ii)  in  the  case  of  a  new  Investment,   a  collateral
assignment  of the  Permitted  Acquisition  Documents  with  respect  thereto in
substantially the form of the Assignments of Acquisition Documents; and

                    (iii)   all   other   documentation,    including,   without
limitation,  one or more  opinions  of counsel  reasonably  satisfactory  to the
Collateral  Agent,  which in the reasonable  opinion of the Collateral  Agent is
appropriate with respect to such transaction.

               (c) Concurrently with (x) the consummation of each Acquisition by
the Borrower (whether directly or indirectly) of any new Foreign  Subsidiary or,
to the extent constituting a Designated  Subsidiary  hereunder,  any new Foreign
SpectraSite Mexico  Subsidiary,  (y) the formation of any new Foreign Subsidiary
or, to the  extent  constituting  a  Designated  Subsidiary  hereunder,  any new
Foreign  SpectraSite  Mexico  Subsidiary,   or  (z)  the  consummation  of  each
Investment by the Borrower  (whether  directly or indirectly) in any new Foreign
Investment or any new Foreign SpectraSite Mexico Investment,  the Borrower will,
and will cause each of the  Subsidiary  Guarantors to, provide to the Collateral
Agent the following:

                    (i)  a  duly  executed  amendment  to  the  Borrower  Pledge
Agreement or the Subsidiary Pledge Agreement,  as applicable,  pursuant to which
all of  the  Equity  Interests  owned  by  the  Borrower  (whether  directly  or
indirectly) in such new Foreign Subsidiary,  such new Foreign SpectraSite Mexico
Subsidiary,  such new Foreign Investment or such new Foreign  SpectraSite Mexico
Investment  (but not to  exceed  sixty-six  percent  (66%) of the  total  Equity
Interests of any such Person) shall be pledged to the Collateral Agent as

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additional  Collateral  securing the  Obligations  to be held by the  Collateral
Agent in  accordance  with the terms of the  Borrower  Pledge  Agreement  or the
Subsidiary  Pledge  Agreement,  as applicable,  together with all original share
certificates  representing  such Equity Interests and duly executed  certificate
powers (or, in the case of uncertificated Equity Interests,  any necessary UCC-1
financing statement forms);

                    (ii) in the case of an Acquisition,  a collateral assignment
of the Permitted Acquisition Documents with respect thereto in substantially the
form of the Assignments of Acquisition Documents; and

                    (iii)   all   other   documentation,    including,   without
limitation,  one or more  opinions  of counsel  reasonably  satisfactory  to the
Collateral  Agent,  which in the reasonable  opinion of the Collateral  Agent is
appropriate with respect to such transaction.

               (d) At such time as the Borrower  shall,  directly or indirectly,
acquire a majority of the Equity  Interests  in  Concourse  Communications,  the
Borrower will, and will cause each of the applicable  Subsidiary  Guarantors to,
provide to the Collateral Agent, subject to clause (f) below, the following:

                    (i) a  completed  questionnaire,  in the form of  Exhibit  X
attached  hereto,  with  respect  to  Concourse  Communications  and each of its
Subsidiaries;

                    (ii) a  duly  executed  amendment  to  the  Borrower  Pledge
Agreement  pursuant to which all of the additional Equity Interests in Concourse
Communications acquired by the Borrower shall be pledged to the Collateral Agent
as additional  Collateral  securing the Obligations to be held by the Collateral
Agent in accordance  with the terms of the Borrower Pledge  Agreement,  together
with all original share certificates representing such Equity Interests and duly
executed certificate powers (or, in the case of uncertificated Equity Interests,
any necessary UCC-1 financing statement forms);

                    (iii) a duly executed  supplement to the Subsidiary Guaranty
for Concourse  Communications  and each of its  Subsidiaries,  together with all
schedules thereto;

                    (iv) a duly executed  supplement to the Subsidiary  Security
Agreement for Concourse  Communications  and each of its Subsidiaries,  together
with all schedules thereto and all necessary UCC-1 financing statement forms;

                    (v) in the case of Concourse  Communications  and any of its
Subsidiaries  holding any Equity  Interests in any other Person, a duly executed
supplement  to the  Subsidiary  Pledge  Agreement,  pursuant to which  Concourse
Communications and each such Subsidiary shall pledge to the Collateral Agent all
of the Equity Interests,  whether now owned or hereafter acquired by it, in such
Person;

                    (vi) a loan  certificate from Concourse  Communications  and
each of its  Subsidiaries,  in substantially the form attached hereto as Exhibit
W,  including  a  certificate  of  incumbency  with  respect to each  Authorized
Signatory of such new Guarantor,  together with the following  items: (A) a copy
of  the  certificate  or  articles  of  incorporation,  certificate  of  limited
partnership or certificate of organization  of such new Guarantor,  certified to
be  complete  and  correct  by the  Secretary  of State of the state of such new
Guarantor's organization; (B) a certificate of good standing for such new

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Guarantor  issued by the  Secretary of State or similar  state  official for the
state in which such  Guarantor is organized;  (C) a complete and correct copy of
the by-laws,  partnership  agreement or limited  liability  company or operating
agreement  of such new  Guarantor;  and (D) a complete  and correct  copy of the
resolutions of the board of directors,  or other appropriate entity, of such new
Guarantor  authorizing  such new  Guarantor to execute,  deliver and perform the
Loan Documents to which it is a party; and

                    (vii)   all   other   documentation,    including,   without
limitation,  an Intellectual  Property Security  Agreement or any other security
agreement  covering  any  additional  intellectual  property  owned by Concourse
Communications  or any of its  Subsidiaries  and one or more opinions of counsel
reasonably satisfactory to the Collateral Agent, which in the reasonable opinion
of the Collateral Agent is appropriate.

               (e) In the  event  that  the  Borrower  or any of the  Designated
Subsidiaries  shall be  party to a merger  permitted  pursuant  to  Section  8.5
hereof,  the Borrower  will,  and will cause each of the  applicable  Subsidiary
Guarantors to, provide to the Collateral Agent the following:

                    (i) duly executed  copies of the  documents  executed by the
Borrower and the Designated  Subsidiaries in connection  with such  transaction,
together with the filing  evidence of such merger  certified by the secretary of
state for the applicable jurisdiction; and

                    (ii) all such other  documentation  that would be  otherwise
required  hereunder  with  respect  to the  surviving  Person  of  such  merger,
including, without limitation,  supplements to Security Documents (together with
applicable  schedules  and exhibits  thereto),  new  Subsidiary  questionnaires,
amendments  to existing  Security  Documents  and  appropriate  UCC-1  financing
statement forms, in each case which in the reasonable  opinion of the Collateral
Agent is appropriate.

               (f)  Notwithstanding  anything to the  contrary  contained in the
foregoing or elsewhere in this Agreement,  the following  shall apply:  (i) with
respect to any  non-wholly  owned  Restricted  Subsidiaries  and,  to the extent
constituting Designated  Subsidiaries  hereunder,  any non-wholly owned Domestic
SpectraSite Mexico Subsidiaries,  the Borrower shall only be required to use its
commercially  reasonable  efforts to provide with respect to such Subsidiaries a
supplement to the Subsidiary  Guaranty,  a supplement to the Subsidiary Security
Agreement  or any other  documentation  providing  for a pledge of the Assets of
such  Subsidiaries;  (ii) with respect to the Equity Interests of any non-wholly
owned Foreign Subsidiary or any Foreign  Investment,  the Borrower shall only be
required  to use its  commercially  reasonable  efforts  to pledge  such  Equity
Interests to the Collateral Agent;  (iii) until such time as the Borrower shall,
directly or indirectly,  own all of the issued and outstanding  Equity Interests
of Concourse Communications,  the Borrower shall cause the board of directors of
Concourse Communications to determine whether the issuance of a Guaranty (in the

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form of a  supplement  to the  Subsidiary  Guaranty),  the  grant  of a  blanket
security  interest in  substantially  all of their  respective  assets  and/or a
pledge  of all  Equity  Interests  owned  by  Concourse  Communications  and its
Subsidiaries in favor of the Collateral Agent to secure the Obligations would be
permitted  under  Applicable  Law  and  under  their  respective  organizational
documents,  and if the board of directors determines that the issuance of such a
Guaranty (in the form of a supplement to the Subsidiary Guaranty),  the grant of
such a  security  interest  and/or  such a pledge  would not meet the  foregoing
tests, the Borrower shall use its commercially  reasonable efforts to obtain the
consent of the other holders of any Equity Interests in Concourse Communications
and its  Subsidiaries  to the  issuance of such a Guaranty,  the grant of such a
security  interest and/or such pledge;  (iv) at such time as the Borrower shall,
directly or indirectly,  own all of the issued and outstanding  Equity Interests
of Concourse  Communications,  the Borrower  shall be required to provide all of
the  documentation  required  under this  Section 6.15 with respect to Concourse
Communications  and its wholly owned Subsidiaries and shall use its commercially
reasonable  efforts to provide such documentation with respect to any non-wholly
owned  Subsidiaries  of  Concourse  Communications;  and (v) in the  case of any
Permitted Acquisition Documents to which Holdco is a party, Holdco shall execute
and deliver a collateral  assignment  of its  interests in and rights under such
Permitted  Acquisition  Documents with respect thereto in substantially the form
of the Assignments of Acquisition Documents;

               (g) Any  document,  agreement  or  instrument  executed or issued
pursuant to this  Section 6.15 shall be a `Loan  Document'  for purposes of this
Agreement.

          Section  6.16 Tower  Subsidiaries.  All Towers  owned or leased by the
Borrower or any of the Restricted Subsidiaries after March 9, 2000 shall be held
in one or more Tower  Subsidiaries;  provided  that all Original  Nextel  Towers
shall be held  exclusively by TAS. The Borrower shall comply with the provisions
of Sections 6.15 and 6.17 in respect  thereof.  Notwithstanding  anything to the
contrary  contained in this  Agreement,  the following  shall apply to the Tower
Subsidiaries:  (a) none of the Tower  Subsidiaries  will engage in any  activity
other than the owning or leasing of Towers and other  Tower  Assets or any other
activities  directly  related  thereto;  (b) none of the Tower  Subsidiaries may
liquidate or dissolve  itself (or suffer any  liquidation  or  dissolution),  or
enter into any merger,  consolidation or other business combination (except with
another  Tower  Subsidiary)   otherwise  permitted  to  be  made  by  Restricted
Subsidiaries  of  the  Borrower  pursuant  to  Section  8.5  hereof;  (c)  Tower
Subsidiaries  may transfer  Assets  freely  amongst  themselves,  but not to the
Borrower or any other  Subsidiary  of the  Borrower  that does not  constitute a
Tower Subsidiary;  and (d) none of the Tower  Subsidiaries shall be obligated in
respect of any Guaranty of the performance obligations of the Borrower or any of
its Subsidiaries  (other than under the Loan Documents).  Tower Subsidiaries may
form and  acquire  Subsidiaries  so long as such  Subsidiaries  are  also  Tower
Subsidiaries.

          Section 6.17 Covenants  Regarding the Designation of Subsidiaries  and
     Investments.

               (a) Procedure for  Designation.  As of the  Agreement  Date,  the
Borrower shall designate in writing to the Lead Arrangers (i) each of its direct
and indirect  Subsidiaries  (other than any Foreign  Subsidiaries,  any Domestic
SpectraSite Mexico Subsidiaries or any Foreign SpectraSite Mexico  Subsidiaries)
as Restricted  Subsidiaries  or Unrestricted  Subsidiaries  for purposes of this
Agreement and (ii) each of the Investments (other than Concourse Communications,
any Foreign  Investments,  any Domestic  SpectraSite  Mexico Investments and any
Foreign  SpectraSite  Mexico  Investments)  made by the  Borrower  or any of its
Subsidiaries as Restricted Investments or Unrestricted  Investments for purposes
of this  Agreement.  With respect to each  Subsidiary of the Borrower  formed or
acquired,  and each Investment of the Borrower or any of its Subsidiaries  made,
after the Agreement  Date, the Borrower  shall,  promptly after the formation or
Acquisition of such  Subsidiary or the making of such  Investment,  designate in
writing to the Lead Arrangers whether each such Subsidiary is a Restricted

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Subsidiary,  an  Unrestricted  Subsidiary,  a  Foreign  Subsidiary,  a  Domestic
SpectraSite  Mexico  Subsidiary or a Foreign  SpectraSite  Mexico Subsidiary and
whether  each  such  Investment  is a  Restricted  Investment,  an  Unrestricted
Investment,  a Foreign Investment, a Domestic SpectraSite Mexico Investment or a
Foreign  SpectraSite  Mexico  Investment.  To the extent that the Borrower shall
fail to designate a Subsidiary  or an  Investment  pursuant to the terms of this
Section  6.17(a),  within  thirty  (30)  days of the  formation  or  Acquisition
thereof,  each such Subsidiary shall be deemed to be a Restricted Subsidiary and
each such Investment  shall be deemed to be a Restricted  Investment.  After the
Agreement  Date,  so long as no Default or Event of Default then exists or would
be caused  thereby,  the Borrower  may,  upon thirty (30) days' (or such shorter
period as may be acceptable to the Administrative Agent) prior written notice to
the Administrative Agent and subject to compliance with the requirements of this
Section 6.17 and Section 6.15 hereof,  re-designate Unrestricted Subsidiaries as
Restricted Subsidiaries and Unrestricted  Investments as Restricted Investments.
Members of the Restricted Group, Restricted  Investments,  Foreign Subsidiaries,
Foreign  Investments,   Domestic   SpectraSite  Mexico  Subsidiaries,   Domestic
SpectraSite  Mexico  Investments,  Foreign  SpectraSite  Mexico  Investments and
Foreign SpectraSite Mexico Subsidiaries may not be re-designated as Unrestricted
Subsidiaries  or  Unrestricted  Investments.  Notwithstanding  anything  to  the
contrary contained herein,  (x) no Unrestricted  Subsidiary may be designated or
re-designated  as a Restricted  Subsidiary if not owned  directly by a member of
the  Restricted  Group and (y) no  Unrestricted  Investment may be designated or
re-designated  as a Restricted  Investment if not owned  directly by a member of
the Restricted Group.

               (b)   Concourse   Communications.   At  such  time  as  Concourse
Communications shall become a wholly-owned Subsidiary of the Borrower, Concourse
Communications and each of its wholly-owned Subsidiaries shall become Restricted
Subsidiaries   for  purposes  of  this  Agreement.   Subsidiaries  of  Concourse
Communications which are not wholly-owned  Subsidiaries of the Borrower shall be
designated  by  the  Borrower  as  Restricted   Subsidiaries   or   Unrestricted
Subsidiaries  and shall be subject to all provisions of this Agreement  relevant
to such designation.

               (c) Release of Collateral Relating to SpectraSite Mexico. So long
as no Default or Event of Default  then exists or would be caused  thereby,  the
Borrower may request that the Majority  Lenders agree, in their sole discretion,
to (i) the release of any Guaranties issued by or any Collateral  pledged by any
Domestic  SpectraSite  Mexico Subsidiary and any Equity Interest in any Domestic
SpectraSite  Mexico Subsidiary or Foreign  SpectraSite Mexico Subsidiary pledged
as  collateral  under any of the Loan  Documents,  and (ii) the  release  of any
Collateral relating to any Domestic SpectraSite Mexico Investment or any Foreign
SpectraSite Mexico Investment; provided, however, so long as no Default or Event
of Default exists or would be caused  thereby and so long as the  investments by
the  Borrower  and  the  Designated   Subsidiaries   (other  than  the  Domestic
SpectraSite Mexico Subsidiaries and the Foreign SpectraSite Mexico Subsidiaries)
in the Domestic  SpectraSite  Mexico  Subsidiaries  and the Foreign  SpectraSite
Mexico Subsidiaries with respect to which a release has been requested have been
less than  $25,000,000 in the aggregate since the Agreement Date, the consent of
the Majority  Lenders or any other Credit  Parties shall not be required for any
such  release.  The  Borrower  may further  request  that the  Majority  Lenders
consent, in their sole discretion,  to the transfer to Holdco by the Borrower of
all or a portion of the Equity  Interests  held  directly or  indirectly  by the
Borrower  in  each  of the  Persons  comprising  SpectraSite  Mexico;  provided,
however, so long as no Default or Event of Default exists or would be caused

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thereby  and so long  as the  investments  by the  Borrower  and the  Designated
Subsidiaries  (other than the Domestic  SpectraSite Mexico  Subsidiaries and the
Foreign  SpectraSite  Mexico  Subsidiaries) in the Domestic  SpectraSite  Mexico
Subsidiaries and the Foreign  SpectraSite Mexico  Subsidiaries to be transferred
have been less than  $25,000,000 in the aggregate  since the Agreement Date, the
consent  of the  Majority  Lenders  or any  other  Credit  Parties  shall not be
required  for any such  transfer.  To the extent that (A) any of the  Collateral
pledged by or related to any Domestic  SpectraSite  Mexico  Subsidiaries  or any
Foreign  SpectraSite Mexico  Subsidiaries shall be released hereunder or (B) any
of  the  Domestic   SpectraSite  Mexico  Subsidiaries  or  any  of  the  Foreign
SpectraSite  Mexico  Subsidiaries  shall be transferred to Holdco,  none of such
Subsidiaries shall thereafter constitute Designated Subsidiaries for purposes of
this Agreement.

                        ARTICLE 7 - Information Covenants

               So  long  as  any  of  the  Obligations  (other  than  contingent
indemnification  obligations)  is  outstanding  and unpaid or the Borrower has a
right to borrow hereunder  (whether or not the conditions to borrowing have been
or can be  fulfilled),  or any  Letter of Credit is  outstanding  and unless the
Majority Lenders, or such greater number of Lenders as may be expressly provided
herein,  shall otherwise consent in writing,  the Borrower will furnish or cause
to be furnished to, in the case of Sections 7.1, 7.2 and 7.3, each Credit Party,
and in the case of Sections 7.4 and 7.5, each Arranger, at its offices:

               Section  7.1  Quarterly  Financial  Statements  and  Information.
Within  forty-five  (45) days after the last day of each of the first  three (3)
fiscal  quarters,  and within  ninety (90) days after the last day of the fourth
fiscal quarter of each fiscal year of the Borrower,  unaudited balance sheets of
(a) Holdco, on a consolidated basis with its Subsidiaries, and (b) the Borrower,
on a  consolidated  basis with its  Subsidiaries,  in each case as at the end of
such  quarter,  and the related  statements of cash flows of such parties as set
forth in clauses (a) and (b) above, and the related  statements of operations of
(i) Holdco, on a consolidated basis with its Subsidiaries, (ii) the Borrower, on
a  consolidated  basis  with  its  Subsidiaries,   (iii)  the  Borrower,   on  a
consolidated  basis  with  the  Restricted   Subsidiaries,   (iv)  the  Domestic
SpectraSite Mexico  Subsidiaries and the Foreign SpectraSite Mexico Subsidiaries
on a consolidated  basis,  and (v) each  Designated  Subsidiary  (other than the
Restricted  Subsidiaries,  the Domestic  SpectraSite Mexico Subsidiaries and the
Foreign  SpectraSite  Mexico  Subsidiaries)  on a  consolidated  basis  with its
Designated Subsidiaries, and a revenue and expense statement of the Borrower and
its  Subsidiaries  on  a  consolidated  basis  by  Tower  Operations  and  Other
Operations,  in each case for such  quarter and for the  elapsed  portion of the
year  ended  with the last day of such  quarter,  which,  with  respect  to such
financial   statements  of  (A)  Holdco,  on  a  consolidated   basis  with  its
Subsidiaries,   and  (B)  the  Borrower  on  a   consolidated   basis  with  its
Subsidiaries,  shall set forth in comparative form such figures as at the end of
and for such quarter and the  corresponding  quarter during the preceding fiscal
year,  and against the figures set forth for such quarter,  with respect to each
quarter  ending prior to the first  anniversary  of the  Agreement  Date, in the
Projections delivered by the Borrower on the Agreement Date, and with respect to
each quarter ending thereafter,  in the Borrower's business plan provided to the
Credit Parties  pursuant to Section  7.4(d) hereof,  and shall be certified by a
Financial  Officer of the Borrower,  to be, in his or her opinion,  complete and
correct in all material respects and to present fairly in all material respects,
in accordance  with GAAP (subject only to normal  year-end  adjustments  and the
absence of footnotes),  the financial  position of (v) Holdco, on a consolidated
basis with its Subsidiaries,  (w) the Borrower, on a consolidated basis with its
Subsidiaries,  (x) the Borrower,  on a  consolidated  basis with the  Restricted
Subsidiaries, (y) the Domestic SpectraSite Mexico Subsidiaries and the Foreign

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SpectraSite Mexico Subsidiaries on a consolidated basis, and (z) each Designated
Subsidiary  (other than the Restricted  Subsidiaries,  the Domestic  SpectraSite
Mexico  Subsidiaries  and the  Foreign  SpectraSite  Mexico  Subsidiaries)  on a
consolidated basis with its Designated  Subsidiaries,  as applicable,  as at the
end of such period and the results of  operations  for such period,  and for the
elapsed portion of the year ended with the last day of such period.

               Section  7.2 Annual  Financial  Statements  and  Information.  In
addition to the quarterly  financial  statements and  information to be provided
pursuant  to  Section  7.1 with  respect  to the  fourth  fiscal  quarter of the
Borrower,  within  ninety  (90) days  after the end of each  fiscal  year of the
Borrower,  the audited balance sheet of (a) Holdco, on a consolidated basis with
its  Subsidiaries,  and (b) the  Borrower,  on a  consolidated  basis  with  its
Subsidiaries,  in each case as at the end of such fiscal year,  setting forth in
comparative  form the figures as at the end of and for the previous fiscal year,
and the related audited  statements of operations and the related  statements of
cash flows of (i) Holdco,  on a consolidated  basis with its  Subsidiaries,  and
(ii) the  Borrower,  on a  consolidated  basis  with its  Subsidiaries,  and the
related profit and loss statements of (A) Holdco,  on a consolidated  basis with
its  Subsidiaries,  and (B) the  Borrower,  on a  consolidated  basis  with  its
Subsidiaries,  in each case for such fiscal year,  setting forth in  comparative
form  the  figures  as at the  end of and  for  the  previous  fiscal  year  and
certified,  without any qualifications or explanatory paragraphs, by independent
certified  public  accountants of national  recognized  standing,  whose opinion
shall be in scope and substance  reasonably  satisfactory to the Lead Arrangers,
and  include  a  statement  signed by such  accountants  to the  effect  that in
connection  with  their  examination  of such  financial  statements  they  have
reviewed the  provisions of this Agreement and have no knowledge of any event or
condition which constitutes an Event of Default or, if they have such knowledge,
specifying the nature and period of existence  thereof and that such accountants
have  authorized the Borrower to deliver such  financial  statements and opinion
thereon to the Credit Parties  pursuant to this  Agreement;  provided,  however,
that in  issuing  such  statement,  such  independent  accountants  shall not be
required to go beyond normal  auditing  procedures  conducted in connection with
their opinion  referred to above.  Notwithstanding  the foregoing,  prior to any
fiscal year end in which either (a) EBITDA for the immediately  preceding twelve
(12) months is less than ninety  percent (90%) of Holdco EBITDA or (b) the total
assets of the  Borrower  and its  Designated  Subsidiaries  is less than  ninety
percent  (90%) of the total  assets of Holdco  and its  Subsidiaries  as of such
fiscal year end,  the Borrower  shall only be required to provide the  financial
statements  referred to in this Section 7.2 for Holdco on a  consolidated  basis
with its  Subsidiaries  and  thereafter  the Borrower  shall only be required to
provide  the  financial  statements  referred  to in  this  Section  7.2 for the
Borrower on a consolidated basis with its Subsidiaries.

               Section 7.3 Performance  Certificates.  At the time the financial
statements  are  furnished   pursuant  to  Section  7.1  hereof,  a  Performance
Certificate:

                    (a) setting forth as at the end of such fiscal quarter,  the
arithmetical  calculations  required to establish (i) the Applicable Margin, and
(ii)  whether  the  Borrower  was in  compliance  with the  requirements  of the
Financial Covenants;

                    (b)  setting  forth  for the  Borrower  and  the  Designated
Subsidiaries, for each such fiscal quarter, a summary, in the form of Schedule 3
to  the   Performance   Certificate,   of  (i)  the   number   and  type   (i.e.
telecommunications  or broadcast) of Towers built,  acquired,  leased or sold by
the Borrower or any of the Designated  Subsidiaries during such period, (ii) the
location  (by state and county) of each Tower Site built,  acquired or leased by
the Borrower or any of the Designated Subsidiaries during such period

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(identifying  the  applicable  Person owning or leasing each such Tower Site) to
the extent reasonably required by the Collateral Agent (it being understood that
such  information  shall be delivered only to the Collateral  Agent),  (iii) the
location (by state and county) of all other Collateral  acquired by the Borrower
or any of the  Designated  Subsidiaries  during  such  period  (identifying  the
applicable Person owning such Collateral) to the extent  reasonably  required by
the  Collateral  Agent  (it being  understood  that  such  information  shall be
delivered  only  to the  Collateral  Agent),  (iv) a list  of all  Acquisitions,
Investments,  Restricted  Payments and dispositions of Assets from the Agreement
Date  through the end of such period  together  with the total amount of each of
the foregoing categories,  (v) an updated summary of the corporate  organization
of the Borrower, its Subsidiaries and its Investments  (identifying whether each
of such  Subsidiaries  constitutes  a  Restricted  Subsidiary,  an  Unrestricted
Subsidiary,  a Foreign Subsidiary, a Domestic SpectraSite Mexico Subsidiary or a
Foreign  SpectraSite  Mexico  Subsidiary  and whether  each of such  Investments
constitutes  a Restricted  Investment,  an  Unrestricted  Investment,  a Foreign
Investment,  a Domestic  SpectraSite Mexico Investment or a Foreign  SpectraSite
Mexico  Investment),  and (vi) the Co-Location  Percentage as at the end of such
quarter; and

                    (c) stating  that, to the best of his or her  knowledge,  no
Default or Event of Default has occurred as at the end of such period,  or, if a
Default or an Event of Default has  occurred,  disclosing  each such  Default or
Event of Default and its nature, when it occurred,  whether it is continuing and
the steps being taken by the  Borrower  with respect to such Default or Event of
Default.

          Section 7.4 Copies of Other Reports.

                    (a) Promptly  upon receipt  thereof,  copies of all material
reports, if any, submitted to Holdco or the Borrower by their independent public
accountants regarding Holdco or the Borrower, including, without limitation, any
management  report  prepared in connection  with the annual audit referred to in
Section 7.2. The Administrative Agent agrees to provide to the Lenders a copy of
any such report which the Administrative Agent receives from the Borrower.

                    (b) Promptly  upon receipt  thereof,  copies of any material
notice or  report  received  from the FCC or the FAA or any  other  Governmental
Authority, or regarding any Material Towers.

                    (c) Annually, a certificate of insurance indicating that the
requirements of Section 6.5 hereof remain satisfied for such fiscal year.

                    (d)  Annually,  and in no event later than January 31 of any
year, a copy of the  Borrower's  annual  business plan on a quarterly  basis and
updated  Projections  for such fiscal year. The  Administrative  Agent agrees to
provide to the  Lenders a copy of any such plan which the  Administrative  Agent
receives from the Borrower.

                    (e)  In  connection   with  any  proposed   Acquisition   or
Investment by the Borrower or any of the Designated Subsidiaries,  and otherwise
from time to time and  promptly  upon each  request,  such  data,  certificates,
reports,  statements,  documents, or further information reasonably available to
the Borrower regarding the business, assets, liabilities, financial position,

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projections,  results of  operations,  of the Borrower or any of the  Designated
Subsidiaries  as  the  Credit  Parties  through  the  Administrative  Agent  may
reasonably request.

                    (f) To the extent not covered  elsewhere  in this Article 7,
promptly after the sending thereof, copies of all material financial statements,
reports  and  other  information  which  Holdco,  the  Borrower  or  any  of the
Designated Subsidiaries sends to any holder of its Funded Debt or its securities
or which Holdco,  the Borrower or any of the Designated  Subsidiaries files with
the  Securities  and Exchange  Commission or any national  securities  exchange;
provided, however, that with respect to filings with the Securities and Exchange
Commission  copies of such filings  shall be deemed to have been provided to the
Lenders upon the delivery of notice of such filing to the Administrative  Agent.
The  Administrative  Agent agrees to provide to the Lenders any such notice of a
filing with the  Securities  and Exchange  Commission  which the  Administrative
Agent receives from the Borrower.

          Section 7.5 Notice of  Litigation  and Other  Matters.  Prompt  notice
(and,  in any event  notice  within  five (5)  Business  Days of the  Borrower's
receipt of notice of the  occurrence  thereof)  of any of the  following  events
after the Borrower has received notice or otherwise becomes aware thereof.

               (a)  the  commencement  of  all  proceedings  and  investigations
involving an amount in  controversy  in excess of  $10,000,000  by or before any
governmental  body and all  actions and  proceedings  in any court or before any
arbitrator  involving an amount in controversy in excess of $10,000,000 against,
Holdco,  the  Borrower or any of the  Designated  Subsidiaries,  or any Material
Towers, or any Necessary Authorization regarding any Material Towers;

               (b) any change with respect to the business, assets, liabilities,
financial  position,  results  of  operations  of  the  Borrower  or  any of its
Subsidiaries  that could  reasonably  be expected to have a  Materially  Adverse
Effect;

               (c) any  Default  or  Event  of  Default,  or the  occurrence  or
non-occurrence of any event which constitutes, or which with the passage of time
or giving of notice or both would  constitute a default by Holdco,  the Borrower
or any of the Designated  Subsidiaries under any material agreement,  other than
this  Agreement,  to  which  Holdco,  the  Borrower  or any  of  the  Designated
Subsidiaries  is a party or by which any of their  respective  properties may be
bound,  which reasonably could be expected to have a Materially  Adverse Effect,
giving in each case the details thereof and specifying the action proposed to be
taken with respect thereto;

               (d) any material default under or misrepresentation in the Nextel
Acquisition  Documents  or the Nextel  Partners  Master  Site  Lease  Agreement,
whether made or occurring  before or after the Agreement Date, and copies of all
notices  concerning  defaults  received  or sent by the  Borrower  or any of the
Designated Subsidiaries thereunder;

               (e) any material  default under or  misrepresentation  in the SBC
Lease  Documents,  whether made or occurring before or after the Agreement Date,
and copies of all notices  concerning  defaults received or sent by Holdco,  the
Borrower or any of the Designated Subsidiaries thereunder;

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<PAGE>   104

               (f) to the extent that any of the following  would  reasonably be
expected to have, individually or in the aggregate, a Materially Adverse Effect,
(i) the  maintenance  of,  or  contribution  to, by the  Borrower  or any of the
Designated  Subsidiaries,  or any of  their  ERISA  Affiliates,  in any Plan not
listed  on  Schedule  5.1(m)  attached  hereto,  or (ii) the  occurrence  of any
Reportable Event or a material non-exempt `prohibited transaction' (as such term
is defined in Section 406 of ERISA or Section  4975 of the Code) with respect to
any  Plan  of  the  Borrower  or  any  of  the  Designated  Subsidiaries  or the
institution  or threatened  institution  by PBGC of  proceedings  under ERISA to
terminate  or to  partially  terminate  any  such  Plan or the  commencement  or
threatened  commencement of any litigation  regarding any such Plan,  other than
litigation involving a routine claim for benefits; and

               (g) the occurrence of any event  subsequent to the Agreement Date
which,  if such  event had  occurred  prior to the  Agreement  Date,  would have
constituted an exception to the representation and warranty in Section 5.1(l) of
this Agreement.

The Administrative  Agent agrees to provide the Lenders copies of any such items
in this Section 7.5 which the Administrative Agent receives from the Borrower.

                         ARTICLE 8 - Negative Covenants

          So long as any of the  Obligations  (other than  contingent  indemnity
obligations)  is  outstanding  and unpaid or the  Borrower has a right to borrow
hereunder  (whether  or not the  conditions  to  borrowing  have  been or can be
fulfilled),  or any Letter of Credit is  outstanding,  and  unless the  Majority
Lenders (or such greater number of Lenders as may be expressly  provided herein)
shall otherwise consent in writing:

          Section 8.1  Indebtedness.  Neither Holdco nor the Borrower shall, and
the Borrower  shall cause each of the  Designated  Subsidiaries  not to, create,
assume,  incur or otherwise  become or remain obligated in respect of, or permit
to be outstanding, any Indebtedness except:

               (a)  Indebtedness   under  this  Agreement  and  the  other  Loan
Documents   (including,    without   limitation,    any   Incremental   Facility
Indebtedness);

               (b)  Capitalized  Lease  Obligations  of  the  Borrower  and  the
Designated Subsidiaries (other than any of the Tower Subsidiaries) not to exceed
the sum of (i) an  aggregate  principal  amount of  $25,000,000  at any one time
outstanding over the remainder of the term of such obligations,  less the amount
of any Indebtedness under Section 8.1(i) below, plus (ii) an aggregate amount of
$15,000,000 at any one time  outstanding  over the remainder of the term of such
obligation  in  respect  of a  Capitalized  Lease  Obligation  of  the  Borrower
financing a second  headquarters  building  to be located at 400 Regency  Forest
Drive, Cary, North Carolina;

               (c) Indebtedness of TAS in favor of the Nextel Tenants secured by
the Nextel Subordinated Lien pursuant to the Nextel Acquisition Documents;

               (d) Net  termination  payments under  Interest  Hedge  Agreements
required or permitted to be entered into pursuant to Section 6.11 hereof;

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<PAGE>   105

               (e)  Indebtedness  of the  Borrower  or  any  of  the  Designated
Subsidiaries  to the Borrower or any wholly  owned  Restricted  Subsidiary,  and
Indebtedness  that  constitutes  an Investment  permitted  under Section  8.2(a)
hereof;

               (f) Guaranties permitted under Section 8.6 hereof;

               (g) With respect to Holdco,  (i) Indebtedness  represented by the
Holdco  Notes,  (ii)  Indebtedness   represented  by  any  Permitted  High-Yield
Securities  which are debt  securities,  (iii)  accrual of interest,  accrual of
dividends,  the accretion of accreted value, the payment of interest in the form
of  additional  Indebtedness  and  the  payment  of  dividends  in the  form  of
additional  shares  in  respect  of the  Holdco  Notes  or any  other  Permitted
High-Yield Securities, and (iv) other Indebtedness to the extent permitted to be
incurred under any of the Holdco Notes Indentures, as in effect on the Agreement
Date or as amended with the consent of the Majority Lenders;

               (h) Indebtedness representing extensions,  renewals, refinancings
or  replacements  (but  not  increases  in  principal  amounts)  of  any  of the
foregoing,  and  with  respect  to  any  extension,   renewal,   refinancing  or
replacement of the Indebtedness described in Sections 8.1(c) and 8.1(g), so long
as such  Indebtedness  shall be subject to terms and  conditions no more onerous
(including, without limitation,  substantially similar subordination provisions)
than the original Indebtedness;

               (i) Indebtedness of the Borrower and the Designated  Subsidiaries
(other  than any of the Tower  Subsidiaries)  in  respect of  conditional  sale,
rental or  purchase  money  obligations,  together  with any  Capitalized  Lease
Obligations  incurred pursuant to Section 8.1(b)(i),  in an aggregate amount not
to exceed $25,000,000 at any one time outstanding;

               (j) Other unsecured Indebtedness incurred by the Borrower and the
Designated Subsidiaries (other than any of the Tower Subsidiaries) not to exceed
$15,000,000 in the aggregate at any one time outstanding;

               (k)   Indebtedness  of  (i)  any  Domestic   SpectraSite   Mexico
Subsidiary or Foreign SpectraSite Mexico Subsidiary to any wholly owned Domestic
SpectraSite  Mexico Subsidiary or wholly owned Foreign  SpectraSite  Subsidiary,
(ii) any Foreign  Subsidiary (other than any Canadian  Subsidiary) to any wholly
owned  Foreign  Subsidiary  (other  than any  Canadian  Subsidiary),  (iii)  any
Canadian Subsidiary to any wholly owned Canadian  Subsidiary,  or (iv) Concourse
Communications or any of its Subsidiaries to Concourse  Communications or any of
its wholly owned Subsidiaries; and

               (l)  Indebtedness  of any Designated  Subsidiary  (other than the
Tower Subsidiaries) acquired in a transaction permitted by Section 8.5, provided
that (i) such  Indebtedness  existed at the time such Person became a Subsidiary
and was not  incurred in  anticipation  thereof,  (ii) no Person other than such
Subsidiary  becomes an obligor  in  respect of such  Indebtedness,  (iii) to the
extent secured, the Liens securing such Indebtedness are permitted by clause (t)
of the definition of Permitted Liens, and (iv) such Indebtedness,  together with
the  Indebtedness of any other  Subsidiary  under this Section 8.1(l),  does not
exceed $10,000,000 in the aggregate at any one time outstanding.

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<PAGE>   106

          Section 8.2 Investments.  The Borrower shall not, and shall not permit
any of the  Designated  Subsidiaries  to, make any loan or advance,  or make any
Investment or otherwise  acquire any evidences of Funded Debt,  Equity Interests
or  other  securities  of any  Person,  except  that  (x) the  Borrower  and the
Designated  Subsidiaries (other than any of the Tower Subsidiaries) may (a) make
Investments in and loans to Restricted  Subsidiaries;  (b) purchase or otherwise
acquire and own (i) any Investment in direct obligations of the United States of
America or any agency thereof or obligations  Guaranteed by the United States of
America  or any agency  thereof,  (ii)  Investments  in time  deposit  accounts,
certificates  of deposit and money market  deposits  maturing within one year of
the date of  acquisition  thereof  issued  by a bank or trust  company  which is
organized  under the laws of the United States of America,  any state thereof or
any foreign  country  recognized by the United States of America having capital,
surplus and undivided  profits  aggregating  in excess of  $500,000,000  (or the
foreign currency  equivalent  thereof) and whose long-term debt is rated "A" (or
such similar equivalent rating) or higher by at least one nationally  recognized
statistical  rating  organization  (as defined in Rule 436 under the  Securities
Act) or any money market fund sponsored by a registered  broker dealer or mutual
fund  distributor,  (iii)  repurchase  obligations  with a term of not more than
thirty (30) days for underlying  securities of the types described in clause (i)
above  entered into with a bank meeting the  qualifications  described in clause
(ii) above, (iv) Investments in commercial  paper,  maturing not more than three
hundred sixty (360) days after the date of acquisition,  issued by a corporation
(other than an Affiliate of the Borrower)  organized and in existence  under the
laws of the United  States of America or any foreign  county  recognized  by the
United  States of America  with a rating at the time as of which any  Investment
therein is made of "P-1" (or higher)  according  to Moody's  Investors  Service,
Inc. or "A-1" (or higher)  according to Standard & Poor's Rating Group,  and (v)
Investments  in  securities  with  maturities of six (6) months or less from the
date of acquisition  issued or fully  guaranteed by any state,  commonwealth  or
territory of the United States of America,  or by any political  subdivision  or
taxing  authority  thereof,  and rated at least "A" by Standard & Poor's Ratings
Group or "A" by Moody's Investors Service,  Inc.; (c) make Investments permitted
by Section 8.5 hereof; (d) make Investments existing as of the Agreement Date as
set forth on  Schedule  5.1(x)  attached  hereto;  (e) make loans or advances to
employees  in the  ordinary  course of  business in an  aggregate  amount not to
exceed  $7,500,000 at any time  outstanding;  (f) acquire stock,  obligations or
securities  received in settlement  of debts  created in the ordinary  course of
business or in  satisfaction  of  judgments;  (g) incur prepaid  expenses,  hold
negotiable  instruments  held for  collection  and lease,  or make  utility  and
workers'  compensation,  performance and other similar deposits;  (h) subject to
the requirements of Sections 2.7(b) and 2.7(e) hereof, make deposits of proceeds
from Permitted Dispositions with a "qualified intermediary," "qualified trustee"
or similar Person for purposes of  facilitating  a "like-kind"  exchange made in
accordance  with the  applicable  provisions of the Code;  (i) make  Investments
representing   the  non-cash   portion  of  the  Purchase   Price  of  Permitted
Dispositions;  and  (j)  extend  trade  credit  in the  ordinary  course  of the
Borrower's  or  such  Designated   Subsidiary's  business  and  (y)(a)  Domestic
SpectraSite Mexico  Subsidiaries and Foreign SpectraSite Mexico Subsidiaries may
make  Investments  in and  loans to wholly  owned  Domestic  SpectraSite  Mexico
Subsidiaries  and wholly owned  Foreign  SpectraSite  Mexico  Subsidiaries,  (b)
Foreign Subsidiaries (other than Canadian  Subsidiaries) may make Investments in
and  loans  to  wholly  owned   Foreign   Subsidiaries   (other  than   Canadian
Subsidiaries),  (c) Canadian  Subsidiaries  may make Investments in and loans to
wholly owned Canadian  Subsidiaries,  and (d) Concourse  Communications  and its
Subsidiaries may make Investments in and loans to Concourse  Communications  and
its wholly owned Subsidiaries.

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<PAGE>   107

          Section  8.3  Limitation  on Liens.  Neither  Holdco nor the  Borrower
shall, and the Borrower shall cause each of the Designated  Subsidiaries not to,
create, assume, incur or permit to exist or to be created,  assumed, incurred or
permitted to exist, directly or indirectly,  any Lien on any of their respective
properties  or  assets,  whether  now owned or  hereafter  acquired,  except for
Permitted Liens.

          Section 8.4  Amendment and Waiver.  The Borrower  shall not, and shall
cause each of the  Designated  Subsidiaries  not to,  without the prior  written
consent  of the Lead  Arrangers,  enter  into any  amendment  of, or agree to or
accept any waiver of (i), which would materially  adversely affect the rights of
the Borrower and the Credit  Parties,  or any of them, of any of the  provisions
(including,  without  limitation,  with respect to any of the Nextel Acquisition
Documents or the SBC Lease  Documents,  any of the closing  conditions set forth
therein) of, (a) its organizational  documents,  including,  without limitation,
its  certificate  or articles of  incorporation  (other than any increase in the
number of authorized shares) and by-laws, (b) the Nextel Acquisition  Documents,
(c) the Holdco Notes Indentures,  and (d) the SBC Lease Documents, or (ii) which
would  reasonably  be  expected to have,  individually  or in the  aggregate,  a
Materially  Adverse  Effect,  of  any  of  the  provisions  (including,  without
limitation,  with respect to any  Permitted  Acquisition  Documents,  any of the
closing conditions set forth therein) of, (a) the NTA Investment Documents,  (b)
the AirTouch Acquisition  Documents,  (c) the Lodestar Acquisition  Documents or
(d) any Permitted Acquisition Documents.

          Section 8.5 Liquidation; Merger; Acquisition or Disposition of Assets.
The Borrower shall not, and shall cause each of the Designated  Subsidiaries not
to, at any time: (a) liquidate or dissolve  itself (or suffer any liquidation or
dissolution) or otherwise wind up; (b) enter into any merger,  consolidation  or
other business combination;  (c) issue any Equity Interests;  (d) sell, abandon,
transfer,  trade or otherwise dispose of, in a single transaction or in a series
of related transactions,  any of its Assets, property or business outside of the
ordinary  course of  business;  (e)  acquire  any Equity  Interests  or make any
Acquisition;  (f) create or acquire any Subsidiary;  or (g) acquire or construct
any Tower and Tower Sites  without an anchor  tenant under  contract;  provided,
however, that:

                    (i) so long as no Default or Event of Default then exists or
would be caused thereby the following are permitted, subject to the restrictions
on Tower Subsidiaries set forth in Section 6.16 hereof:

                         (A)  a  merger  among  the  Borrower  or  one  or  more
                    Restricted  Subsidiaries  (other  than TAS) with or into any
                    other  Person,  or,  subject to  Section  8.5(v)  below,  an
                    Acquisition   permitted  hereunder  effected  by  a  merger;
                    provided,  however,  that (I)  with  respect  to any  merger
                    involving the Borrower or one of the Restricted Subsidiaries
                    in which  the  Borrower  is not the  surviving  entity,  the
                    surviving  entity shall assume all of the obligations of the
                    Borrower  hereunder and under the other Loan  Documents,  as
                    applicable,   and  shall   execute   and   deliver   to  the
                    Administrative  Agent an assumption  agreement,  in form and
                    substance  reasonably  satisfactory  to the Lead  Arrangers,
                    (II)  the  surviving  entity,  at its  sole  expense,  shall
                    promptly execute and deliver to the Credit Parties, or cause
                    to be executed and delivered to the Credit Parties, all such
                    other and further documents,  agreements, and instruments as
                    may be reasonably  requested by the Administrative  Agent in
                    connection with the surviving entity's obligations hereunder
                    and under  the  other  Loan  Documents  (including,  without
                    limitation,  (x) with  respect to any merger  involving  the
                    Borrower in which the Borrower is not the surviving entity,

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<PAGE>   108

                    renewal promissory notes in favor of each Lender, (y) a loan
                    certificate for such surviving entity,  substantially in the
                    form of Exhibit V attached hereto, together with appropriate
                    attachments   thereto,  and  (z)  original  UCC-1  financing
                    statements,  signed by such  surviving  entity as debtor and
                    naming the Collateral  Agent as secured party to be filed in
                    all  appropriate  jurisdictions,  in such form and substance
                    and  number  as  shall  be  reasonably  satisfactory  to the
                    Collateral  Agent),  and (III) the  surviving  entity  shall
                    provide   all  other   documentation,   including,   without
                    limitation,  (x) an Intellectual Property Security Agreement
                    or any other  security  agreement  covering  any  additional
                    intellectual  property  obtained by the  Borrower,  (y) lien
                    search  results with respect to such  surviving  entity from
                    all appropriate  jurisdictions and filing offices,  together
                    with appropriate  UCC-3 termination  statements  relating to
                    Liens  which are not  Permitted  Liens,  and (z) one or more
                    opinions   of  counsel   reasonably   satisfactory   to  the
                    Collateral  Agent  which in the  reasonable  opinion  of the
                    Collateral  Agent is appropriate with respect to such merger
                    and  assumption  (any  document,   agreement  or  instrument
                    executed or issued  pursuant to this Section 8.5(i) shall be
                    a "Loan Document" for purposes of this Agreement);

                         (B) a merger  between  or among two or more  Restricted
                    Subsidiaries  or  between  or among  two or more  Designated
                    Subsidiaries that are not Restricted Subsidiaries; and

                         (C)  a  liquidation  or  dissolution  of  one  or  more
                    Designated  Subsidiaries  into  its or their  parent  entity
                    (provided that, with respect to a liquidation or dissolution
                    of any  Restricted  Subsidiary,  the  Borrower or one of the
                    Restricted Subsidiaries is such parent entity);

                    (ii) subject to  compliance  with the  mandatory  prepayment
provision of Section  2.7(b),  (x) the Borrower and the Designated  Subsidiaries
may sell, transfer or dispose of, in a single transaction or a series of related
transactions,  the  Broadcast  Services  Business,  (y)  the  Borrower  and  the
Designated Subsidiaries may sell, lease, abandon,  transfer,  trade or otherwise
dispose  of, in a single  transaction  or in a series of  related  transactions,
Assets, at the fair market value thereof and, with respect to any disposition in
which the Purchase Price is equal to or greater than $10,000,000  (other than an
exchange or swap of Assets), at least seventy-five percent (75%) of the Purchase
Price  shall be  payable  in cash,  and (z)  Designated  Subsidiaries  may issue
minority Equity Interests  therein,  and in connection with any such disposition
or issuance  the  Collateral  Agent  shall,  upon the  request of the  Borrower,
release any Liens granted pursuant to any of the Security Documents with respect
to such Assets, subject to the following conditions:

                         (A) no  Default  or Event of  Default  shall then exist
                    before or after giving effect to such disposition;

                         (B) with  respect  only to clauses (y) and (z) above of
                    this  Section  8.5(ii),  the  portion of  Annualized  EBITDA
                    attributable  to such Assets in the aggregate,  (I) together
                    with the portion of Annualized  EBITDA  attributable  to all
                    other Assets  disposed of during the  immediately  preceding
                    twelve (12) month period,  shall not exceed fifteen  percent
                    (15%) of the Borrower's  Annualized  EBITDA calculated as of
                    the last day of the  fiscal  quarter  of the  Borrower  most
                    recently ended for which the financial  statements  referred
                    to in Section 7.1 hereof have been delivered by the Borrower

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<PAGE>   109

                    to the  Administrative  Agent,  and (II)  together  with the
                    portion  of  Annualized  EBITDA  attributable  to all  other
                    Assets disposed of during the term of this Agreement,  shall
                    not  exceed  twenty-five  percent  (25%)  of the  Borrower's
                    Annualized  EBITDA  calculated  as of  the  last  day of the
                    fiscal quarter of the Borrower most recently ended for which
                    the financial  statements  referred to in Section 7.1 hereof
                    have been  delivered by the  Borrower to the  Administrative
                    Agent;  provided,  however, that, in the case of an exchange
                    or swap of  Assets,  only  the  excess,  if any,  of (x) the
                    portion  of  Annualized  EBITDA  attributable  to the Assets
                    being disposed of, over (y) the portion of Annualized EBITDA
                    attributable to the Assets being acquired, shall be included
                    in  calculating   Annualized  EBITDA  for  purposes  of  the
                    Annualized EBITDA tests set forth above;

                         (C) for any  single  disposition  or series of  related
                    dispositions  with  respect  to  which  the  Purchase  Price
                    exceeds  $5,000,000,  the  Borrower  shall  provide  to  the
                    Arrangers  and the Lenders  calculations  demonstrating  pro
                    forma  compliance with the Financial  Covenants after giving
                    effect to such  disposition  or series of  dispositions,  as
                    applicable; and

                         (D) with  respect  only to clauses (y) and (z) above of
                    this  Section  8.5(ii),  each time that the Borrower and the
                    Designated    Subsidiaries   shall   complete   any   single
                    disposition or a series of dispositions  (whether related or
                    unrelated)  having an aggregate  Purchase Price with respect
                    to all  such  dispositions  of  greater  than  or  equal  to
                    $100,000,000  (with  this  basket  being  reset  to zero (0)
                    following each delivery of Projections  required hereunder),
                    the Borrower  shall provide to the Arrangers and the Lenders
                    revised   Projections    assuming    consummation   of   all
                    dispositions  included  in  such  set  of  dispositions  and
                    demonstrating   pro  forma  compliance  with  the  Financial
                    Covenants through the Final Maturity Date;

               (iii) (A) members of the Restricted  Group (other than any of the
Tower  Subsidiaries)  may  (I)  make  Investments  as  permitted  under  Section
8.2(x)(a) hereof, and (II) transfer Assets amongst themselves,  (B) the Domestic
SpectraSite Mexico  Subsidiaries and the Foreign SpectraSite Mexico Subsidiaries
may (I) make  Investments as permitted  under Section 8.2(y) hereof and (II) may
transfer  Assets  amongst  themselves,  (b)  Foreign  Subsidiaries  (other  than
Canadian  Subsidiaries)  may (I) make  Investments  as permitted  under  Section
8.2(y)  hereof and (II) may transfer  Assets  amongst  themselves,  (c) Canadian
Subsidiaries  may (I) make  Investments as permitted under Section 8.2(y) hereof
and  (II)  may  transfer   Assets   amongst   themselves,   and  (d)   Concourse
Communications  and its Subsidiaries may (I) make Investments as permitted under
Section 8.2(y) hereof and (II) may transfer Assets amongst themselves;

               (iv)  the  Borrower  and the  Designated  Subsidiaries  may  make
Capital Expenditures in the ordinary course of their respective businesses;

               (v)  subject  to  compliance  with  Sections  6.9,  6.15 and 6.16
hereof,  the Borrower and the  Designated  Subsidiaries  may make the  following
Acquisitions and Investments and form Subsidiaries with respect thereto:

                         (A)  Acquisitions of (I) Tower Assets (other than Tower
                    Assets of the type  described in the  following  clause (B))
                    located in the United States or (II) Persons organized under
                    the laws of the United States or any state thereof or the

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<PAGE>   110

                    District  of  Columbia  that are  engaged  primarily  in the
                    business  of holding or  leasing  Tower  Assets of such type
                    which are located in the United States;

                         (B)   Acquisitions  of  Tower  management  and  rooftop
                    businesses  located  in the  United  States  so  long as the
                    aggregate   Purchase   Price   for  all  such   Acquisitions
                    consummated  during  the term of this  Agreement  shall  not
                    exceed the sum of (I)  $50,000,000,  plus (II) the amount of
                    any New Affiliated  Equity to the extent allocated solely to
                    this purpose;

                         (C)  Investments   (whether   structured  as  a  single
                    Investment  or a  series  of  related  Investments)  by  the
                    Restricted   Group  in,  and   Acquisitions   not  otherwise
                    permitted  under this  Section  8.5(v) of, any member of the
                    Unrestricted  Group,  Restricted  Investments and non-wholly
                    owned Restricted Subsidiaries in an amount not to exceed, in
                    the aggregate during the term of this Agreement,  the sum of
                    (I) $100,000,000, plus (II) the amount of any New Affiliated
                    Equity  to the  extent  allocated  solely  to this  purpose;
                    provided,  however,  that the  aggregate  amount of any such
                    Investments made in members of the Unrestricted Group at any
                    time   outstanding   shall  not   exceed   the  sum  of  (x)
                    $25,000,000,  plus  (y) the  amount  of any  New  Affiliated
                    Equity to the extent allocated solely to this purpose;

                         (D)   Acquisitions  of,  and  Investments  in,  Foreign
                    Subsidiaries and Foreign Investments, in each case organized
                    in a jurisdiction  other than Canada or Mexico, in an amount
                    not to  exceed,  in the  aggregate  during  the term of this
                    Agreement, the sum of (I) $10,000,000,  plus (II) the amount
                    of any New Affiliated  Equity to the extent allocated solely
                    to this purpose;

                       (E) Permitted Canadian Investments;

                       (F) Permitted Mexican Investments;

                           (G) the NTA Investment; and

                         (H)  Acquisitions  with respect to which the portion of
                    the Purchase Price in excess of any monetary  limitation set
                    forth  in  this   Agreement  is  payable  solely  in  Equity
                    Interests issued by Holdco or the proceeds of New Affiliated
                    Equity to the extent allocated solely to this purpose,  with
                    the value of such Equity  Interests and such New  Affiliated
                    Equity being excluded from such monetary limitations;

provided  that  each of the  foregoing  Acquisitions  and  Investments  shall be
subject to the following conditions:

                    (x) no Default or Event of Default  shall then exist  before
or after giving effect to any such Acquisition or Investment;

                    (y)  each  time  that  the  Borrower   and  the   Designated
Subsidiaries  shall complete any single Acquisition or Investment or a series of
Acquisitions or Investments  (whether related or unrelated)  having an aggregate
Purchase Price with respect to all such  Acquisitions and Investments of greater
than or  equal  to  $100,000,000  (with  this  basket  being  reset  to zero (0)
following each delivery of Projections required  hereunder),  the Borrower shall
provide to the Arrangers and the Lenders revised Projections assuming

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consummation  of all  Acquisitions  and  Investments  included  in  such  set of
Acquisitions  and Investments and  demonstrating  pro forma  compliance with the
Financial Covenants through the Final Maturity Date; and

                    (z)  with  respect  to  any  Acquisition  structured  as  an
exchange  or swap of  Tower  Assets,  the cash  outlay  by the  Borrower  or the
applicable  Designated Subsidiary for such Acquisition must be within the dollar
limitations set forth with respect to such Acquisition in this Section 8.5(v);

                    (vi) the Borrower  and the  Designated  Subsidiaries  (other
than TAS) may acquire  and  construct  Tower and Tower  Sites  without an anchor
tenant under contract,  so long as the aggregate  Investment for such Towers and
Tower Sites is at all times less than $15,000,000;  provided,  however,  that if
the Borrower or the applicable  Designated Subsidiary shall enter into a binding
contract with an anchor tenant with respect to any such Tower or Tower Site, the
book  value of the  Investment  of the  Borrower  or the  applicable  Designated
Subsidiary  in such Tower or Tower Site shall be  thereafter  excluded  from the
Investments subject to the $15,000,000 limitation provided for herein;

                    (vii) so long as no Default or Event of Default  then exists
or would be caused  thereby,  subject to  compliance  with Sections 6.9 and 6.15
hereof,  the Borrower may consummate each of (A) the SBC Transaction and (B) the
Airtouch Acquisition;

                    (viii) so long as no Default or Event of Default then exists
or would be caused thereby,  (A) subject to the consent of the Majority Lenders,
the  Borrower  may  transfer to Holdco all or a portion of the Equity  Interests
held directly or  indirectly  by the Borrower in each of the Persons  comprising
SpectraSite Mexico pursuant to Section 6.17(c) hereof;  provided,  however, that
so long as the  investments  by the  Borrower  and the  Designated  Subsidiaries
(other  than  the  Domestic  SpectraSite  Mexico  Subsidiaries  and the  Foreign
SpectraSite Mexico Subsidiaries) in the Domestic SpectraSite Mexico Subsidiaries
and the Foreign SpectraSite Mexico Subsidiaries to be transferred have been less
than  $25,000,000 in the aggregate  since the Agreement Date, the consent of the
Majority  Lenders or any other Credit Parties shall not be required for any such
transfer,  and (B) the  Borrower  may transfer to Holdco all or a portion of the
Equity  Interests  held  directly or  indirectly  by the  Borrower in any of the
Unrestricted Subsidiaries or the Unrestricted Investments;

                    (ix) the Borrower may issue Permitted High-Yield Securities;
and

                    (x) subject to compliance with Sections 6.9 and 6.15 hereof,
the Borrower and the Designated Subsidiaries may form Subsidiaries.

          Section 8.6 Limitation on Guaranties.  Neither Holdco nor the Borrower
shall, and the Borrower shall cause each of the Designated  Subsidiaries not to,
at any time  Guaranty,  assume,  be  obligated  with respect to, or permit to be
outstanding  any Guaranty of, any  obligation of any other Person other than (a)
under any of the Loan Documents or as permitted under Section 8.1 hereof,  (b) a
guaranty by endorsement of negotiable instruments for collection in the ordinary
course of business,  (c) contingent  obligations incurred in the ordinary course
of  business  with  respect  to  surety  and  appeal  bonds,   performance   and
return-of-money  bonds and other similar obligations,  (d) a guaranty by Holdco,
the Borrower or any of the Designated Subsidiaries of the obligations of the

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Borrower  or any of the  Restricted  Subsidiaries,  and (e) a guaranty by Holdco
permitted under the Holdco Notes Indentures.

          Section 8.7 Restricted Payments and Purchases. The Borrower shall not,
and  shall  cause  each  of the  Designated  Subsidiaries  not to,  directly  or
indirectly declare or make any Restricted Payment or Restricted Purchase, except
that,  so long as no  Default or Event of Default  then  exists or would  result
therefrom, any of the Designated Subsidiaries may make pro rata distributions to
holders of Equity  Interests in such Designated  Subsidiaries,  and the Borrower
may (a) subject to the consent of the Majority  Lenders,  transfer to Holdco all
or a portion of the Equity Interests held directly or indirectly by the Borrower
in each of the Persons comprising SpectraSite Mexico pursuant to Section 6.17(c)
hereof;  provided,  however, that so long as the investments by the Borrower and
the  Designated   Subsidiaries  (other  than  the  Domestic  SpectraSite  Mexico
Subsidiaries and the Foreign  SpectraSite  Mexico  Subsidiaries) in the Domestic
SpectraSite Mexico  Subsidiaries and the Foreign SpectraSite Mexico Subsidiaries
to be transferred  have been less than  $25,000,000  in the aggregate  since the
Agreement Date, the consent of the Majority  Lenders or any other Credit Parties
shall not be required  for any such  transfer,  (b)  transfer to Holdco all or a
portion of the Equity  Interests  (or dividend  payments  made in respect of the
Equity  Interests)  held  directly or  indirectly by the Borrower in each of the
Unrestricted Subsidiaries or the Unrestricted  Investments,  (c) make Restricted
Payments to Holdco to enable Holdco to make the following payments when due: (i)
interest  payments  on the Holdco  Notes;  (ii) at any time  after the  Borrower
Leverage  Ratio  shall have been less than 4.50 to 1.00 for two (2)  consecutive
fiscal  quarters  before and after giving  effect to such  payment,  dividend or
interest  payments,  as applicable,  on Permitted  High-Yield  Securities issued
after the  Agreement  Date in  connection  with an Eligible  Debt Offering or an
Eligible  Equity  Offering,  in each case  following  expiration of any required
payment-in-kind  period  applicable  thereto;  (iii)  to the  extent  that  such
payments are required in the ordinary  course of business and relate directly to
the Borrower or any of the Designated Subsidiaries,  or to services provided for
or on behalf of the Borrower or any of the Designated Subsidiaries, payments, in
each  case  that  are  required  to be paid in cash,  when due of (A)  corporate
franchise fees and taxes actually owed by Holdco,  (B) legal and accounting fees
and  expenses  actually  incurred by Holdco,  (C) costs  incurred to comply with
Holdco's reporting obligations under federal or state laws,  including,  without
limitation,  reports filed with respect to the Securities  Act, the Exchange Act
or the respective  rules and  regulations  promulgated  thereunder and (D) other
customary  corporate overhead expenses;  (iv) payments of `Additional  Interest'
(as that term is defined in the Registration  Rights Agreements  entered into in
connection with the Holdco Notes) and any other  comparable  payments in respect
of other Permitted High-Yield Securities;  and (v) payments to repurchase Equity
Interests in Holdco owned by  employees,  officers and  directors of Holdco upon
their death, disability or termination of employment or service, in an aggregate
amount not to exceed  $10,000,000 during any year or $15,000,000 during the term
of this  Agreement,  and (d) make  dividend  payments  to holders  of  Permitted
High-Yield  Securities  of the  Borrower  following  expiration  of any required
payment-in-kind  period  applicable  thereto  at any  time  after  the  Borrower
Leverage  Ratio  shall have been less than 4.50 to 1.00 for two (2)  consecutive
fiscal quarters before and after giving effect to such payment.

          Section 8.8 Affiliate Transactions.  The Borrower shall not, and shall
cause  each of the  Designated  Subsidiaries  not to, at any time  engage in any
transaction  with an  Affiliate  (other  than the  Borrower or any of the wholly
owned Restricted Subsidiaries),  nor make an assignment or other transfer of any
of its Assets to any Affiliate (other than the Borrower or any of the wholly

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<PAGE>   113

owned Restricted  Subsidiaries),  on terms less  advantageous  than would be the
case if such transaction had been effected with a non-Affiliate, except (a) with
respect to  Investments  and loans  permitted  under  Section  8.2(a);  (b) with
respect  to  the  transactions   contemplated  in  connection  with  the  Nextel
Acquisition  and the  Acquisition  of  additional  Towers from Nextel;  (c) with
respect  to the  transactions  contemplated  in  connection  with  the  Airtouch
Acquisition, the NTA Investment and the SBC Transaction; (d) with respect to the
Loans and other  transactions  contemplated by this Agreement and the other Loan
Documents;  and (e) with  respect to the  payment  of  customary  commercial  or
investment banking,  underwriting,  placement agent or financial advisor fees to
Affiliates of the Borrower for any such services rendered to the Borrower.

          Section  8.9  Corporate  Name;  Corporate  Structure;   Business.  The
Borrower shall not, and shall cause each of the Designated  Subsidiaries not to,
change its corporate name or corporate  structure  without giving the Collateral
Agent  thirty (30) days' (or such  shorter  period as may be  acceptable  to the
Collateral  Agent) prior written  notice of its intention to do so and complying
with all reasonable  requirements  of the Collateral  Agent in regard thereto or
(b)  engage in any  businesses  other  than the Tower  Operations  and the Other
Operations and activities related or incident thereto.

          Section 8.10  Negative  Pledge.  The Borrower  shall not,  directly or
indirectly,  and shall not permit any of the Designated  Subsidiaries  to, enter
into any  agreement  (other  than  the Loan  Documents)  with  any  Person  that
prohibits or  restricts or limits the ability of the Borrower or any  Designated
Subsidiary to create, incur, pledge, or suffer to exist any Lien upon any of its
respective Assets, or restricts the ability of any Designated Subsidiary to make
Restricted  Payments to the Borrower  except (a) any  encumbrance or restriction
that restricts in a customary  manner the subletting,  assignment or transfer of
any property or asset that is subject to a lease,  license or other  contract or
the assignment,  encumbrance or  hypothecation  of such lease,  license or other
contract;  (b) any limitation or restriction  contained in any Permitted Lien to
the extent such  limitation or restriction  restricts the imposition of Liens on
or the transfer of the property  subject to such  Permitted  Liens;  and (c) any
restriction imposed on assets subject to a Permitted  Disposition pursuant to an
agreement entered into in connection with such Permitted Disposition pending the
closing of such sale or disposition.

                         ARTICLE 9 - Financial Covenants

          Section 9.1 Borrower  Leverage Ratio. The Borrower shall not permit as
of the end of any fiscal quarter ended during the term of this Agreement,  or as
of the date of any Advance under this Agreement, the Borrower Leverage Ratio (if
applicable,  after giving effect to such Advance) to exceed the applicable ratio
for such date during the periods as set forth below:

               Quarters Ending:                                 Ratio:
               ---------------                                  -----

Agreement Date through June 30, 2002                         6.00 to 1.00

July 1, 2002 through December 31, 2002                       5.50 to 1.00

January 1, 2003 through June 30, 2003                        5.00 to 1.00

July 1, 2003 through December 31, 2003                       4.50 to 1.00

January 1, 2004 through December 31, 2004                    4.00 to 1.00

January 1, 2005 and thereafter                               3.50 to 1.00

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<PAGE>   114

          Section 9.2 Borrower  Interest  Coverage Ratio. The Borrower shall not
permit  as of the  end of any  fiscal  quarter  ended  during  the  term of this
Agreement,  the  Borrower  Interest  Coverage  Ratio to be less  than the  ratio
specified below with respect to such fiscal quarter end:

               Quarters Ending:                                 Ratio:
               ---------------                                  -----

Agreement Date through June 30, 2003                         2.00 to 1.00

July 1, 2003 through December 31, 2003                       2.25 to 1.00

January 1, 2004 and thereafter                               2.75 to 1.00

          Section 9.3 Total  Interest  Coverage  Ratio.  The Borrower  shall not
permit  as of the  end of any  fiscal  quarter  ended  during  the  term of this
Agreement, the Total Interest Coverage Ratio to be less than the ratio specified
below with respect to such fiscal quarter end:

               Quarters Ending:                                 Ratio:
               ---------------                                  -----

Agreement Date through June 30, 2002                         1.15 to 1.00

July 1, 2002 through June 30, 2003                           1.25 to 1.00

July 1, 2003 through December 31, 2003                       1.50 to 1.00

January 1, 2004 through June 30, 2006                        1.75 to 1.00

July 1, 2006 and thereafter                                  2.00 to 1.00

          Section 9.4 Fixed Charge Coverage Ratio. The Borrower shall not permit
the Fixed  Charge  Coverage  Ratio,  as of the end of any fiscal  quarter  ended
during the term of this Agreement, to be less than 1.10 to 1.00.

                              ARTICLE 10 - Default

          Section 10.1 Events of Default. Each of the following shall constitute
an Event of Default  with  respect to the  Obligations,  whatever the reason for
such event and whether it shall be  voluntary or  involuntary  or be effected by
operation of law or pursuant to any judgment or order of any court or any order,
rule or regulation of any governmental or non-governmental body:

               (a) Any  representation  or warranty made under this Agreement or
any other Loan Document (other than any Mortgage) shall prove to be incorrect or
misleading  in any material  respect when made or deemed to be made  pursuant to
Section 5.2 hereof;

               (b)  (i)  The  Borrower  shall  default  in  the  payment  of any
principal of the Notes or the  Incremental  Facility Notes when due, or (ii) the
Borrower  shall  default in the payment of any  interest,  fees or other amounts
payable  to any of the Credit  Parties  when due and such  Default  shall not be
cured by payment in full of such amounts within three (3) days;

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<PAGE>   115

               (c)  (i)  the  Borrower  shall  default  in  the  performance  or
observance  of any  agreement  or covenant  under  Section 7.4 or 7.5,  and such
default  shall not be cured  within the earlier of (A) a period of fifteen  (15)
days from the date the Borrower knew of the occurrence of such default, or (B) a
period of fifteen (15) days after written notice of such default is given to the
Borrower or (ii) the Borrower shall default in the  performance or observance of
any agreement or covenant under Article 7 (other than under Section 7.4 or 7.5),
Article 8 or Article 9;

               (d) The Borrower  shall default in the  performance or observance
of any other agreement or covenant  contained in this Agreement not specifically
referred to elsewhere in this Section 10.1, and such default, if curable,  shall
not be cured  within the  earlier  of (i) a period of thirty  (30) days from the
date the Borrower knew of the  occurrence  of such default,  or (ii) a period of
thirty (30) days after written notice of such default is given to the Borrower;

               (e)  There  shall  occur  any  default  in  the   performance  or
observance of any agreement or covenant  contained in any of the Loan  Documents
(other than this Agreement or any of the Mortgages) by the Borrower,  any of the
Designated Subsidiaries, Holdco or any other obligor thereunder, which shall not
be cured within the cure period, if any, set forth in such Loan Document;

               (f) There shall be entered and remain  unstayed a decree or order
for  relief  in  respect  of  Holdco,  the  Borrower  or any  of the  Borrower's
Subsidiaries  under  Title 11 of the United  States Code as now  constituted  or
hereafter  amended,  or any other applicable  Federal or state bankruptcy law or
other  similar  law, or the  appointment  of a receiver,  liquidator,  assignee,
trustee, custodian,  sequestrator or similar official of Holdco, the Borrower or
any  of the  Borrower's  Subsidiaries,  or of  any  substantial  part  of  their
respective properties,  or ordering the winding-up or liquidation of the affairs
of Holdco, the Borrower or any of the Borrower's Subsidiaries; or an involuntary
petition  shall be filed against  Holdco,  the Borrower or any of the Borrower's
Subsidiaries and a temporary stay entered,  and (i) such petition and stay shall
not be  diligently  contested,  or (ii)  such  petition  and stay  shall  remain
uncontroverted   for  a  period  of  ten  (10)  consecutive  days,  or  continue
undismissed for a period of sixty (60) consecutive days;

               (g)  Any of  Holdco,  the  Borrower  or  any  of  the  Borrower's
Subsidiaries shall file a petition, answer or consent seeking relief under Title
11 of the United States Code, as now  constituted or hereafter  amended,  or any
other  applicable  Federal or state  bankruptcy  law or other  similar  law,  or
Holdco, the Borrower or any of the Borrower's  Subsidiaries shall consent to the
institution of  proceedings  thereunder or to the filing of any such petition or
shall seek or consent to the  appointment or taking of possession of a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of  Holdco,  the  Borrower  or  any of the  Borrower's  Subsidiaries,  or of any
substantial part of their respective properties,  or Holdco, the Borrower or any
of the  Borrower's  Subsidiaries  shall fail  generally to pay their  respective
debts as they  become  due, or Holdco,  the  Borrower  or any of the  Borrower's
Subsidiaries shall take any action in furtherance of any such action;

               (h) One or more judgments (not paid or fully covered by insurance
as to which the relevant  insurance company has acknowledged  coverage) shall be
entered  against the  Borrower  or any of the  Designated  Subsidiaries  for the
payment of money which exceeds  $10,000,000  in the  aggregate,  or a warrant of
attachment or execution or similar process shall be issued or levied against

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<PAGE>   116

property of the Borrower or any of the Designated  Subsidiaries which,  together
with  all  other  such  property  of the  Borrower  or  any  of  the  Designated
Subsidiaries subject to other such process,  exceeds in value $10,000,000 in the
aggregate,  and if,  within  thirty  (30) days  after the  entry,  issue or levy
thereof,  such  judgment,  warrant  or  process  shall  not  have  been  paid or
discharged or stayed  pending  appeal,  or if, within thirty (30) days after the
expiration of any such stay,  such  judgment,  warrant or process shall not have
been paid or discharged;

               (i) (i) There shall occur a Mortgage  Default,  (ii) any Mortgage
or any material  provision thereof shall at any time and for any reason cease to
be in full force and effect, or be declared by a court of competent jurisdiction
to be null and void, or a proceeding shall be commenced by Holdco, the Borrower,
any of the  Borrower's  Subsidiaries  or by any  Governmental  Authority  having
jurisdiction over the Borrower or any of the Designated Subsidiaries, seeking to
establish the invalidity or unenforceability  thereof (exclusive of questions of
interpretation  of any provision  thereof),  or (iii) any Mortgage shall for any
reason  fail or cease to create a valid and  first-priority  Lien on or Security
Interest in the Collateral in favor of the Collateral  Agent, for the benefit of
the Credit Parties,  purported to be covered  thereby,  subject to any Permitted
Lien, or any such perfected Lien or Security Interest in favor of the Collateral
Agent shall cease to be perfected;  provided that, with respect to any Mortgages
delivered  prior to the Agreement  Date,  the foregoing  shall only apply to the
extent applicable to Material Towers;

               (j)  There  shall  be  at  any  time  any  "accumulated   funding
deficiency,"  as defined in Section  302 of ERISA or in Section 412 of the Code,
with respect to any Plan maintained by the Borrower or any of its  Subsidiaries,
or  to  which  the  Borrower  or  any  of  its  Subsidiaries  has  any  material
liabilities, or any trust created thereunder; or a trustee shall be appointed by
a United  States  District  Court to  administer  any such  Plan;  or PBGC shall
institute  proceedings to terminate any such Plan; or the Borrower or any of its
Subsidiaries   shall  incur  any  liability  to  PBGC  in  connection  with  the
termination  of any such Plan; or any fiduciary of, or party in interest to, any
Plan or trust created under any Plan of the Borrower or any of its  Subsidiaries
shall engage in a "prohibited  transaction"  (as such term is defined in Section
406 of ERISA or Section  4975 of the Code) which would  subject the  Borrower or
any of its Subsidiaries to a material tax on "prohibited  transactions"  imposed
by Section 4975 of the Code;  or any  fiduciary of, or party in interest to, any
Plan or trust created under any Plan of the Borrower or any of its  Subsidiaries
shall engage in a breach of fiduciary responsibility or knowingly participate in
any violation of ERISA;  or any Plan of the Borrower or any of its  Subsidiaries
which is intended to qualify under Section 401(a) of the Code shall fail to meet
the qualification  requirements under such Code section,  or the Borrower or any
of the Designated Subsidiaries shall incur any withdrawal liability with respect
to any Multiemployer Plan, and, in each case, such event or condition,  together
with other such events or  conditions,  if any,  would be  reasonably  likely to
subject the Borrower and the Designated  Subsidiaries  to any tax,  liability or
penalty in excess of $10,000,000;

               (k) Any of the  Unrestricted  Subsidiaries  shall fail to pay and
discharge all material taxes, including, without limitation,  withholding taxes,
assessments  and  governmental  charges or levies required to be paid by them or
imposed upon them or their income or profits or upon any properties belonging to
them,  prior to the date on which penalties  attach  thereto,  but excluding any
taxes  that  are  being  diligently  contested  in  good  faith  by  appropriate
proceedings and for which reserves in conformity with GAAP have been set aside

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<PAGE>   117

on the books of the appropriate Unrestricted Subsidiary, or shall fail to timely
file all material  information  returns required by federal,  state or local tax
authorities,  and in each case, such failure, together with other such failures,
if any,  would be reasonably  likely to subject the Borrower and the  Designated
Subsidiaries to any tax, liability or penalty in excess of $10,000,000;

               (l) There  shall occur any default  under any  mortgage,  deed to
secure debt, note, loan agreement,  indenture or other instrument of Holdco, the
Borrower  or any of the  Designated  Subsidiaries  evidencing  Funded Debt in an
amount in excess of $10,000,000,  which default would permit the acceleration of
such Funded Debt;

               (m) There shall occur any default which would permit acceleration
of the Indebtedness  evidenced  thereby under any of the Holdco Notes Indentures
or any Permitted  High-Yield  Securities (or documents evidencing or relating to
the issuance of any Permitted High-Yield Securities);

               (n)  There  shall  occur an "Event  of  Default"  as such term is
defined in the Nextel Subordinated Security Agreement,  or any default under the
Master Site Lease Agreement or the Nextel Partners Master Site Lease  Agreement,
if applicable, and as a result thereof Tower Sites equal to ten percent (10%) or
more of the  aggregate  number of Tower Sites then leased to the Nextel  Tenants
shall  cease to be leased  pursuant to the Master  Site Lease  Agreement  or, if
applicable, the Nextel Partners Master Site Lease Agreement;

               (o) There shall occur  events of default by STI under  Section 30
of the SBC Sublease in respect of more than  thirty-five (35) Tower Sites during
any consecutive two (2) year period or portion thereof;

               (p) The  Borrower and the  Designated  Subsidiaries  shall,  on a
consolidated basis, fail to own or lease at least that number of Towers equal to
ninety  percent  (90%) of the  Towers  owned or leased by them on the  Agreement
Date;

               (q) Any Security  Document  (other than any of the  Mortgages) or
          any Note or any other Loan Document or any material  provision thereof
shall at any time and for any reason  cease to be in full force and effect or be
declared  by a court  of  competent  jurisdiction  to be  null  and  void,  or a
proceeding  shall be commenced by Holdco,  the Borrower,  any of the  Borrower's
Subsidiaries  or by any  Governmental  Authority  having  jurisdiction  over the
Borrower  or  any of the  Designated  Subsidiaries,  seeking  to  establish  the
invalidity or unenforceability thereof (exclusive of questions of interpretation
of any  provision  thereof),  or Holdco,  the Borrower or any of the  Designated
Subsidiaries  shall deny that it has any liability or obligation for the payment
of principal or interest or other obligations  purported to be created under any
Loan Document;

               (r) Any Security Document (other than any of the Mortgages) shall
for any  reason  fail or cease to create a valid and first  priority  Lien on or
Security  Interest in the Collateral in favor of the Collateral  Agent,  for the
benefit of the Credit Parties,  purported to be covered thereby,  subject to any
Permitted Lien, or any such perfected Lien or Security  Interest in favor of the
Collateral Agent shall cease to be perfected; provided, however, that if, in the
reasonable judgment of the Administrative Agent, such failure is curable, no

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such Event of Default shall be deemed to have occurred if the Borrower, promptly
following  notice from the Collateral  Agent,  shall take such actions as may be
necessary to cure such failure or cessation; or

               (s) There shall occur any Change of Control.

     Section 10.2 Remedies.

               (a) If an Event of Default  specified in Section 10.1 (other than
an Event of  Default  under  Section  10.1(f)  or  Section  10.1(g))  shall have
occurred and shall be continuing,  the  Administrative  Agent, at the request of
the  Majority  Lenders,  shall  formally  declare  that an Event of Default  has
occurred and (i) terminate  the Revolving  Commitment,  any  obligations  of the
Swing Loan Lender to advance the Swing Loan  Committed  Amount and the Tranche A
Commitment, as applicable, and (ii) declare the principal of and interest on the
Loans and the Notes and all other amounts owed to the Credit  Parties under this
Agreement  and the Notes  and any  other  Obligations  to be  forthwith  due and
payable without presentment, demand, protest or notice of any kind, all of which
are hereby expressly  waived,  anything in this Agreement or in the Notes or any
other  Loan  Document  to  the  contrary  notwithstanding,   and  the  Revolving
Commitment,  the  obligations of the Swing Loan Lender to advance the Swing Loan
Committed  Amount and the Tranche A Commitment,  as applicable,  shall thereupon
forthwith  terminate and all such amounts shall be immediately  due and payable,
and during the  continuance of an Event of Default  specified in Section 10.1(b)
hereof,  the  principal  amount of the Loans  outstanding  hereunder  shall bear
interest at the Default Rate applicable thereto.

               (b) Upon the  occurrence  and  continuance of an Event of Default
specified in Section  10.1(f) or Section  10.1(g),  all principal,  interest and
other  amounts due  hereunder  and under the Notes,  and all other  Obligations,
shall  thereupon  and  concurrently  therewith  become due and  payable  and the
Revolving  Commitment,  the  obligations of the Swing Loan Lender to advance the
Swing Loan Committed Amount and the Tranche A Commitment,  as applicable,  shall
forthwith terminate and the principal amount of the Loans outstanding  hereunder
shall bear  interest at the Default  Rate  applicable  thereto,  all without any
action by the Agents,  the Lenders or the Majority  Lenders or any of them,  and
without presentment,  demand,  protest or other notice of any kind, all of which
are expressly waived,  anything in this Agreement or in the other Loan Documents
to the contrary notwithstanding.

               (c) With  respect  to any  outstanding  Letters  of  Credit  with
respect to which  presentment  for honor shall not have  occurred at the time of
any acceleration of the Obligations  pursuant to this Section 10.2, the Borrower
shall (i) upon the occurrence and  continuance of an Event of Default  specified
in Section 10.1(f) or Section 10.1(g),  concurrently therewith, or (ii) upon the
occurrence and  continuance of any other Event of Default,  promptly upon demand
by any Issuing Bank, pay to such Issuing Bank an amount equal to one hundred two
percent (102%) of the aggregate  undrawn and unexpired  amount of each Letter of
Credit issued by such Issuing Bank then outstanding,  which cash will be held as
cash  collateral by such Issuing Bank for the L/C Obligations and applied to the
payment  of drafts  drawn  under such  Letters of Credit and the unused  portion
thereof  after such  Letters of Credit  shall have  expired or been fully  drawn
upon,  if any,  shall be applied to repay  other  Obligations  hereunder  in the
manner set forth in Section 10.3 hereof.

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               (d) Upon acceleration of the Notes, as provided in subsection (a)
or (b) of this Section  10.2,  the Agents and the Lenders  shall have all of the
post-default  rights  granted to them, or any of them,  under the Loan Documents
and under Applicable Law.

               (e) Upon acceleration of the Notes, as provided in subsection (a)
or (b) of this Section 10.2, the Collateral  Agent, upon request of the Majority
Lenders,  shall  have  the  right  to the  appointment  of a  receiver  for  the
properties and assets of the Borrower and the Designated  Subsidiaries,  both to
operate and to sell such properties and assets, and the Borrower, for itself and
on behalf of the Designated Subsidiaries, hereby consents to such right and such
appointment  and hereby  waives any  objection  the  Borrower or any  Designated
Subsidiary may have thereto or the right to have a bond or other security posted
by the  Collateral  Agent,  on  behalf  of the  Credit  Parties,  in  connection
therewith.

               (f) The  rights  and  remedies  of the  Agents  and  the  Lenders
hereunder shall be cumulative and not exclusive.

          Section  10.3  Payments   Subsequent  to   Acceleration  or  Maturity.
Subsequent  to the  acceleration  of the Loans under  Section 10.2 hereof or the
Final Maturity Date (or, if applicable, the Incremental Facility Maturity Date),
payments and prepayments  under this Agreement made to any of the Credit Parties
or otherwise received by any of such Persons (from realization on Collateral for
the Obligations or otherwise) shall be paid over to the Administrative Agent (if
necessary) and distributed by the Administrative Agent as follows: FIRST, to the
reasonable  costs  and  expenses,  if  any,  incurred  in  connection  with  the
collection  of such payment or prepayment  including,  without  limitation,  any
reasonable  costs  incurred  by any of  them  in  connection  with  the  sale or
disposition of any Collateral for the Obligations; SECOND, to the Credit Parties
for any fees  hereunder  or under any of the other Loan  Documents  then due and
payable;  THIRD, to the Lenders pro rata on the basis of their respective unpaid
principal amounts,  to the payment of any unpaid interest which may have accrued
on the  Obligations;  FOURTH,  to the Lenders pro rata until all Loans have been
paid in full (and, for purposes of this clause, obligations under Interest Hedge
Agreements with any of the Lenders shall be deemed to be Loans and shall be paid
on a pro rata basis with the Loans); FIFTH, to the Lenders pro rata on the basis
of  their  respective  unpaid  amounts,  to  the  payment  of any  other  unpaid
Obligations;  SIXTH,  to damages  incurred by any Credit  Party by reason of any
breach hereof or of any other Loan Document;  and SEVENTH,  upon satisfaction in
full of all  Obligations,  to the  Borrower  or as  otherwise  required  by law.
Notwithstanding  the foregoing,  each Lender may allocate amounts received by it
pursuant to this Section 10.3 in its discretion to the various  Obligations held
by it.

          Section 10.4 Remedies with Respect to FCC Authorizations. In the event
that the Borrower or the Designated  Subsidiaries should hold any authorizations
issued by the FCC, then  notwithstanding  anything to the contrary  contained in
this Agreement or any of the Loan Documents,  the Lenders and their agents shall
not take any action  pursuant to this  Agreement  or the Loan  Documents,  which
would  constitute or result in any assignment of any FCC  authorizations  or any
transfer of control of the holder of any FCC authorization if such assignment or
transfer  of control  would  require  under then  existing  law  (including  the
Communications  Act) the prior approval of the FCC, without first obtaining such
approval.  Notwithstanding the occurrence of an Event of Default,  voting rights
in any of the Collateral,  to the extent but only to the extent, it includes the
FCC   authorizations,   shall  remain  with  the  Borrower  or  the   Designated
Subsidiaries unless and until all required consents of the FCC shall have been

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obtained for the exercise of voting rights by another  entity,  and prior to the
exercise of voting  rights by a  purchaser  of such  Collateral  at a private or
public sale,  the prior consent of the FCC pursuant to 47 U.S.C.  Section 310(d)
or any  successor  provision of Applicable  Law will, if required,  be obtained.
Upon the  occurrence  and during the  continuance  of an Event of  Default,  the
Borrower and the  Designated  Subsidiaries  agree to cooperate  with each of the
Credit Parties and their agents in the preparation,  execution and filing of any
applications  and other  documents  and providing  any  information  that may be
necessary  or helpful in  obtaining  any  consent  of the FCC  required  for the
exercise of the Credit Parties' rights under the Loan Documents.

                             ARTICLE 11 - The Agents

          Section 11.1  Appointment and  Authorization.  Subject only to Section
11.13 hereof,  each of the Lenders hereby  irrevocably  appoints and authorizes,
and hereby agrees that it will require any  transferee of any of its interest in
its Loans and in its Notes  irrevocably  to appoint and  authorize,  each of the
Agents to take such  actions  as its agent on its behalf  and to  exercise  such
powers  hereunder  and under the  Security  Documents  as are  delegated to such
Agents by the terms hereof and thereof, together with such powers of such Agents
as are  reasonably  incidental  thereto.  None of the  Agents  nor any of  their
respective  directors,  officers,  employees  or agents  shall be liable for any
action  taken or omitted to be taken by it or them  hereunder  or in  connection
herewith,  except for its or their own gross  negligence or willful  misconduct.
Each of the Credit Parties hereby  authorizes the Collateral Agent to enter into
Non-Disturbance  Agreements  with  tenants  leasing  space on any Tower from the
Borrower or any of the Designated Subsidiaries.

          Section 11.2 Interest Holders.  The Administrative Agent and the other
Agents may treat each Lender,  or the Person designated in the last notice filed
with the  Administrative  Agent under this Section 11.2, as the holder of all of
the interests of such Lender in its Loans and in its Note or Notes until written
notice of transfer,  signed by such Lender (or the Person designated in the last
notice filed with the Administrative Agent) and by the Person designated in such
written  notice  of  transfer,  in  form  and  substance   satisfactory  to  the
Administrative Agent, shall have been filed with the Administrative Agent.

          Section 11.3 Consultation with Counsel.  The Administrative  Agent and
the  Collateral  Agent may consult with Paul,  Hastings,  Janofsky & Walker LLP,
special counsel to the  Administrative  Agent and the Collateral  Agent, or with
other  legal  counsel  selected  by them and shall not be liable  for any action
taken or suffered by them in good faith in consultation with such counsel, or at
the  direction  of the  Majority  Lenders  and in  reasonable  reliance  on such
consultations or direction.

          Section 11.4 Documents.  None of the Agents shall be under any duty to
examine,  inquire into, or pass upon the validity,  effectiveness or genuineness
of this Agreement,  any Note, any other Loan Document,  or any other instrument,
document or communication  furnished pursuant hereto or in connection  herewith,
and each of the Agents  shall be entitled  to assume  (absent  knowledge  to the
contrary) that they are valid,  effective and genuine,  have been signed or sent
by the proper parties and are what they purport to be.

          Section 11.5 Agents'  Affiliates.  With respect to the Commitments and
the Loans, the Agents and their respective Affiliates shall have the same rights
and powers hereunder and under the other Loan Documents as any other Lender, and
Affiliates of any of the Agents may accept deposits from, lend money to and

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generally engage in any kind of business with Holdco,  the Borrower,  any of the
Borrower's  Subsidiaries  or any  Affiliates of, or Persons doing business with,
the  Borrower,  as if they were not  affiliated  with such Agent and without any
obligation to account therefor.

          Section 11.6  Responsibility of the Agents. The duties and obligations
of each of the Agents under this  Agreement and the Security  Documents are only
those expressly set forth in this Agreement and the Security Documents.  Each of
the Agents  shall be  entitled to assume  that no Default  has  occurred  and is
continuing unless it has actual knowledge, or has been notified by the Borrower,
of such  fact,  or has been  notified  by a Lender in writing  that such  Lender
considers that a Default has occurred and is  continuing,  and such Lender shall
specify in detail the nature  thereof in  writing.  None of the Agents  shall be
liable  hereunder for any action taken or omitted to be taken except for its own
gross negligence or willful misconduct.  The Administrative  Agent shall provide
promptly  each of the Lenders with copies of such  documents  received  from the
Borrower as such Lender may reasonably request.

          Section 11.7 Security  Documents.  The Collateral Agent, as collateral
agent hereunder and under the Security Documents, is hereby authorized to act on
behalf  of the  Lenders  in its  own  capacity  and  through  other  agents  and
sub-agents appointed by it with due care, under the Security Documents, provided
that,  unless  otherwise  expressly  provided in this Agreement,  the Collateral
Agent  shall  not  agree  to the  release  of any  Collateral,  or any  property
encumbered by any mortgage,  pledge or security  interests  except in compliance
with the terms and conditions of this Agreement.  In connection with its role as
secured party with respect to the Collateral  hereunder,  the  Collateral  Agent
shall act as collateral agent for itself and for the benefit of the Lenders, and
such role as collateral  agent shall be disclosed on all  appropriate  accounts,
certificates, filings, mortgages, and other collateral documentation.

          Section 11.8 Action by the Agents.

               (a) Each of the Agents  shall be entitled  to use its  discretion
with respect to exercising or refraining from exercising any rights which may be
vested in it by, and with respect to taking or refraining from taking any action
or actions which it may be able to take under or in respect of, this  Agreement,
unless such Agent shall have been instructed by the Majority Lenders to exercise
or refrain  from  exercising  such rights or to take or refrain from taking such
action;  provided  that the  Administrative  Agent shall not exercise any rights
under Section 10.2(a) of this Agreement  except upon the request of the Majority
Lenders.  None of the Agents  shall incur any  liability  under or in respect of
this Agreement with respect to anything which it may do or refrain from doing in
the reasonable  exercise of its judgment or which may seem to it to be necessary
or desirable in the  circumstances  for the  protection  of the interests of the
Lenders,  except for its gross negligence or willful  misconduct,  or conduct in
breach of this  Agreement as  determined by a final,  non-appealable  order of a
court having jurisdiction over the subject matter.

               (b) None of the Agents  shall be liable to the  Lenders or to any
Lender in acting or  refraining  from acting  under this  Agreement or any other
Loan Document in accordance with the  instructions  of the Majority  Lenders (or
all of the Lenders where expressly  required by this Agreement),  and any action
taken or failure to act  pursuant to such  instructions  shall be binding on all
Lenders.

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     Section  11.9 Notice of Default or Event of Default.  In the event that any
Agent or any Lender shall acquire actual knowledge, or shall have been notified,
of any  Default  (other than  through a notice by one party  hereto to all other
parties),  such Agent or such Lender,  as the case may be, shall promptly notify
the Administrative  Agent and the Collateral Agent, and the Administrative Agent
and the  Collateral  Agent shall take such  action and assert such rights  under
this Agreement and the other Loan  Documents as the Majority  Lenders (or all of
the Lenders where expressly  required by this Agreement) direct, and neither the
Administrative  Agent nor the Collateral Agent shall be subject to any liability
by reason of its acting  pursuant to any such request.  If the Majority  Lenders
shall fail to request the  Administrative  Agent or the Collateral Agent to take
action or to assert rights under this Agreement in respect of any Default within
ten (10) days after their receipt of the notice of any Default from any Agent or
any Lender, or shall request  inconsistent  action with respect to such Default,
the Administrative Agent and the Collateral Agent may, but shall not be required
to, take such action and assert such rights  (other than rights under Article 10
hereof) as they deem in their  discretion to be advisable for the  protection of
the  Lenders,   except  that,  if  the  Majority  Lenders  have  instructed  the
Administrative  Agent or the Collateral  Agent not to take such action or assert
such right, in no event shall the Administrative  Agent or the Collateral Agent,
as applicable, act contrary to such instructions.

     Section 11.10 Responsibility Disclaimed.  None of the Agents shall be under
any liability or responsibility whatsoever as an Agent:

          (a) To the  Borrower  or any  other  Person  as a  consequence  of any
failure or delay in  performance  by or any breach  by, the  Lenders,  or any of
them, of any of its or their obligations under this Agreement;

          (b) To the Lenders, or any of them, as a consequence of any failure or
delay in performance  by, or any breach by, (i) Holdco or the Borrower of any of
their respective  obligations  under this Agreement or the Notes, as applicable,
or any other Loan Document,  or (ii) any Subsidiary of the Borrower or any other
obligor under any other Loan Document; or

          (c)  To  the   Lenders,   or  any  of   them,   for  any   statements,
representations  or  warranties  in  this  Agreement,   or  any  other  document
contemplated  by this Agreement or any other Loan Document,  or any  information
provided  pursuant  to this  Agreement,  any other Loan  Document,  or any other
document  contemplated  by this Agreement,  or for the validity,  effectiveness,
enforceability  or  sufficiency  of this  Agreement,  the Notes,  any other Loan
Document, or any other document contemplated by this Agreement.

     Section 11.11  Indemnification.  The Lenders agree to indemnify each of the
Administrative  Agent and the Collateral  Agent (to the extent not reimbursed by
the Borrower),  pro rata in accordance with their respective  Commitment Ratios,
from  and  against  any and  all  liabilities,  losses,  damages,  actions,  and
reasonable  fees and  expenses  of  counsel  (as  such  fees  and  expenses  are
incurred),  or  disbursements  of any kind or  nature  whatsoever  which  may be
imposed  on,  incurred by or asserted  against the  Administrative  Agent or the
Collateral  Agent  in  any  way  relating  to or  arising  out of  its  role  as
Administrative  Agent  or  Collateral  Agent,  as the case  may be,  under  this
Agreement,  any other Loan Document,  or any other document contemplated by this
Agreement  or any action  taken or omitted  by the  Administrative  Agent or the
Collateral  Agent under this  Agreement,  any other Loan Document,  or any other
document contemplated by this Agreement in its role as Administrative Agent or

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Collateral  Agent,  as the case may be, except that none of the Lenders shall be
liable to the  Administrative  Agent or the Collateral  Agent for any portion of
such  liabilities,  losses,  damages,  actions,  reasonable fees and expenses of
counsel  or  disbursements  resulting  from  the  gross  negligence  or  willful
misconduct of the  Administrative  Agent or the Collateral Agent, as applicable,
as determined by a final,  non-appealable  order of a court having  jurisdiction
over the subject matter.

     Section 11.12 Credit Decision.  Each of the Lenders represents and warrants
to each other Credit Party that:

          (a) In making its  decision to enter into this  Agreement  and to make
its Advances it has independently taken whatever steps it considers necessary to
evaluate the  financial  condition  and affairs of Holdco,  the Borrower and the
Borrower's Subsidiaries and that it has made an independent credit judgment, and
that it has not relied upon any other Credit Party or upon information  provided
by any Agent (other than  information  provided to the Arrangers by the Borrower
and forwarded by the Arrangers to the Lenders); and

          (b) So long as any portion of the Obligations remains outstanding,  it
will continue to make its own independent  evaluation of the financial condition
and affairs of Holdco, the Borrower and the Borrower's Subsidiaries.

     Section 11.13 Successor  Agents.  Subject to the appointment and acceptance
of a  successor  Agent as  provided  below,  any Agent may resign at any time by
giving  written  notice  thereof to the Lenders and the Borrower.  Upon any such
resignation,  the Majority  Lenders  shall have the right to appoint a successor
Agent with,  so long as no Default or Event of Default then exists,  the consent
of the  Borrower.  If no  successor  Agent shall have been so  appointed  by the
Majority  Lenders  with,  so long as no Default or Event of Default then exists,
the consent of the Borrower,  and shall have accepted  such  appointment  within
thirty (30) days after the retiring Agent gives notice of resignation,  then the
retiring  Agent may, on behalf of the Lenders,  appoint a successor  Agent which
shall be any existing  Lender or a commercial  bank organized  under the laws of
the United  States of America or any  political  subdivision  thereof  which has
combined capital and reserves in excess of $500,000,000.  Upon the acceptance of
any  appointment as an Agent hereunder by a successor Agent such successor Agent
shall  thereupon  succeed  to and become  vested  with all the  rights,  powers,
privileges, duties and obligations of the retiring Agent, and the retiring Agent
shall be  discharged  from its  duties  and  obligations  hereunder.  After  any
retiring Agent's resignation  hereunder as Agent, the provisions of this Article
shall  continue  in effect for its  benefit in respect of any  actions  taken or
omitted to be taken by it while it was acting as an Agent. The resignation of an
Agent may not take effect until a successor Agent is appointed.

     Section 11.14 Agents. None of the Lenders identified on the facing page of,
signature  pages of or elsewhere in this  Agreement as a  "co-agent,"  "managing
agent,"  "co-documentation  agent" or "syndication  agent" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement or any
other Loan Document other than those applicable to all Lenders as such.  Without
limiting  the  foregoing,  none of the  Lenders so  identified  shall have or be
deemed to have any fiduciary  relationship  with any other  Lender.  Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders so
identified  in deciding to enter into this  Agreement or any other Loan Document
or in taking or not taking action hereunder or thereunder.

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                      ARTICLE 12 - Change in Circumstances

                          Affecting Eurodollar Advances

     Section 12.1 Eurodollar Basis  Determination  Inadequate or Unfair. If with
respect to any proposed  Eurodollar  Advance for any Eurodollar  Advance Period,
the  Administrative  Agent determines after  consultation  with the Lenders that
deposits in Dollars (in the applicable  amount) are not being offered to each of
the Lenders in the  relevant  market for such  Eurodollar  Advance  Period,  the
Administrative Agent shall forthwith give notice thereof to the Borrower and the
Lenders,  whereupon  until the  circumstances  giving rise to such  situation no
longer exist, the obligations of any affected Lender to make Eurodollar Advances
shall be suspended.

     Section 12.2 Illegality.  If, after the Agreement Date, the adoption of any
Applicable  Law,  or any  change  in  any  Applicable  Law,  or  any  change  in
interpretation or administration thereof by any Governmental Authority,  central
bank or comparable  agency  charged with the  interpretation  or  administration
thereof,  or compliance by any Lender with any directive  (whether or not having
the force of law) of any such  authority,  central  bank or  comparable  agency,
shall make it unlawful or  impossible  for any Lender to make,  maintain or fund
Eurodollar Advances,  such Lender shall so notify the Administrative  Agent, and
the  Administrative  Agent  shall  forthwith  give  notice  thereof to the other
Lenders and the Borrower.  Before giving any notice to the Administrative  Agent
pursuant to this Section 12.2, such Lender shall  designate a different  lending
office if such  designation  will avoid the need for giving such notice and will
not,  in  the  sole   judgment  of  such   Lender,   be   otherwise   materially
disadvantageous  to such Lender.  Upon  receipt of such notice,  notwithstanding
anything  contained in Article 2 hereof,  the  Borrower  shall repay in full the
then  outstanding  principal  amount of each Eurodollar  Advance of such Lender,
together with accrued  interest  thereon and any  reimbursement  required  under
Section 2.10 hereof,  on either (a) the last day of the then current  Eurodollar
Advance Period  applicable to such affected  Eurodollar  Advances if such Lender
may lawfully continue to maintain and fund such Eurodollar  Advances to such day
or (b) immediately if such Lender may not lawfully continue to fund and maintain
such affected Eurodollar  Advances to such day.  Concurrently with repaying each
affected Eurodollar Advance of such Lender,  notwithstanding  anything contained
in Article 2 or Article 4 hereof,  the  Borrower  may borrow a Base Rate Advance
from such Lender, and such Lender shall make such Advance,  if so requested,  in
an amount such that the  outstanding  principal  amount of the Note held by such
Lender shall equal the  outstanding  principal  amount of such Note  immediately
prior to such repayment.

     Section 12.3 Increased Costs.

          (a) If, after the Agreement  Date, the adoption of any Applicable Law,
or any  change  in any  Applicable  Law,  or any  interpretation  or  change  in
interpretation or administration thereof by any Governmental Authority,  central
bank or comparable  agency  charged with the  interpretation  or  administration
thereof or compliance  by any Lender with any  directive  (whether or not having
the force of law) of any such authority, central bank or comparable agency:

               (i) shall  subject  any Lender to any tax,  duty or other  charge
with respect to its obligation to make Eurodollar Advances, or shall change the

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basis of taxation of payments to any Lender of the  principal  of or interest on
its  Eurodollar  Advances  or in  respect  of any other  amounts  due under this
Agreement,  in respect of its  Eurodollar  Advances  or its  obligation  to make
Eurodollar  Advances (except for changes in the rate or method of calculation of
tax on the overall net income of such Lender); or

               (ii)  shall  impose,   modify  or  deem  applicable  any  reserve
(including,  without  limitation,  any imposed by the Board of  Governors of the
Federal Reserve System,  but excluding any included in an applicable  Eurodollar
Reserve  Percentage),  special deposit,  capital  adequacy,  assessment or other
requirement or condition against assets of, deposits with or for the account of,
or  commitments  or credit  extended  by, any  Lender in  respect of  Eurodollar
Advances or shall impose on any Lender or the London interbank  borrowing market
any other condition  affecting its obligation to make Eurodollar Advances or its
Eurodollar Advances;

and the result of any of the foregoing is to increase the cost to such Lender of
making or maintaining any such Eurodollar  Advances,  or to reduce the amount of
any sum received or receivable by such Lender under this  Agreement or under its
Note with  respect  thereto,  then,  within  five (5) days after  demand by such
Lender,  the  Borrower  agrees to pay to such Lender such  additional  amount or
amounts as will  compensate  such  Lender for such  increased  costs;  provided,
however,  that  notwithstanding  the  foregoing,  the  Borrower  shall  have  no
obligation  to make any such payment in respect of any such costs  incurred more
than  ninety (90) days prior to its  receipt of notice  from such  Lender.  Each
Lender will  promptly  notify the Borrower and the  Administrative  Agent of any
event of which it has  knowledge,  occurring  after the date hereof,  which will
entitle  such  Lender to  compensation  pursuant to this  Section  12.3 and will
designate a different  lending  office if such  designation  will avoid the need
for,  or reduce the  amount  of,  such  compensation  and will not,  in the sole
judgment of such Lender, be otherwise disadvantageous to such Lender.

               (b) Any Lender  claiming  compensation  under this  Section  12.3
shall  provide  the  Borrower  with a  written  certificate  setting  forth  the
additional  amount  or  amounts  to be paid  to it  hereunder  and  calculations
therefor in reasonable  detail.  Such  certificate  shall be conclusive,  absent
manifest error. In determining  such amount,  such Lender may use any reasonable
averaging and attribution methods. If any Lender demands compensation under this
Section  12.3,  the  Borrower  may at any time,  upon at least five (5) Business
Days'  prior  notice  to such  Lender,  prepay  in  full  the  then  outstanding
Eurodollar  Advances of such Lender,  together with accrued  interest thereon to
the date of prepayment, along with any reimbursement required under Section 2.10
hereof. Concurrently with prepaying such Eurodollar Advances and notwithstanding
anything to the  contrary  contained  in Article 2 or Section  4.2  hereof,  the
Borrower may borrow a Base Rate Advance from such Lender, and such Lender shall,
if so  requested,  make  such  Advance  in an amount  such that the  outstanding
principal  amount of the Note held by such Lender  shall  equal the  outstanding
principal amount of such Note immediately prior to such prepayment.

     Section 12.4 Effect On Other Advances.

          (a) If notice has been given  pursuant to Section  12.1,  12.2 or 12.3
suspending  the  obligation  of any  Lender  to  make  Eurodollar  Advances,  or
requiring Eurodollar Advances of any Lender to be converted,  repaid or prepaid,
then, unless and until the circumstances giving rise to such repayment no longer

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apply,  all Advances which would  otherwise be made by such Lender as Eurodollar
Advances affected shall be made instead as Base Rate Advances.

          (b) Within sixty (60) days after  written  notice  pursuant to Section
12.1, 12.2 or 12.3 by any Lender, the Borrower may, in its discretion, provide a
replacement  lender or lenders  for such  Lender,  which  replacement  lender or
lenders will be subject to the approval of the Administrative  Agent,  which, so
long as there exists no Default or Event of Default,  shall not be  unreasonably
withheld,  and the Administrative Agent, such Lender and the Borrower shall take
all necessary  actions to transfer the rights,  duties and  obligations  of such
Lender to such  replacement  lender or lenders within such sixty (60) day period
(including, without limitation, the payment in full of all Obligations hereunder
due to the Lender being replaced).

                           ARTICLE 13 - Miscellaneous

     Section 13.1 Notices.

          (a) Unless otherwise  specifically  provided  herein,  all notices and
other  communications  under this  Agreement  shall be in  writing  and shall be
deemed to have been given five (5) days after deposit in the mail, designated as
certified mail, return receipt requested,  postage-prepaid,  or one (1) Business
Day after being entrusted to a reputable  commercial overnight delivery service,
or when sent by telecopy addressed to the party to which such notice is directed
at its address  determined  as provided in this  Section  13.1.  All notices and
other  communications  under this Agreement shall be given to the parties hereto
at the following addresses:

               (i) If to the Borrower, to it at:

                           SpectraSite Communications, Inc.
                           100 Regency Forest Drive, Suite 400
                           Cary, North Carolina 27511
                           Attention: David Tomick and Steven Lilly
                          Telecopy No.: (919) 465-2325

                                 with a copy to:

                          Dow, Lohnes & Albertson, PLLC
                           1200 New Hampshire Avenue, N.W. Suite 800
                           Washington, D.C. 20036-6802
                           Attention: Timothy J. Kelley, Esq.
                          Telecopy No.: (202) 776-2222

               (ii) If to the  Administrative  Agent or the Collateral Agent, to
each of them at:

                           Canadian Imperial Bank of Commerce
                           425 Lexington Avenue
                            New York, New York 10017
                           Attention: Agency Services
                          Telecopy No.: (212) 856-3763

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<PAGE>   127

                                 with a copy to:

                           Paul, Hastings, Janofsky & Walker LLP
                           600 Peachtree Street, Suite 2400
                           Atlanta, Georgia 30308-2222
                           Attention: Chris D. Molen, Esq.
                          Telecopy No.: (404) 815-2424

               (iii) If to any Lead Arranger, to each of them at:

                           Canadian Imperial Bank of Commerce
                           425 Lexington Avenue
                            New York, New York 10017
                            Attention: Keith Labbate
                          Telecopy No.: (212) 856-3558

                                     and to:

                           Credit Suisse First Boston
                              Eleven Madison Avenue
                            New York, New York 10010
                            Attention: Nancy Sheridan
                          Telecopy No.: (212) 325-8228

                                 with a copy to:

                           Paul, Hastings, Janofsky & Walker LLP
                           600 Peachtree Street, Suite 2400
                           Atlanta, Georgia 30308-2222
                           Attention: Chris D. Molen, Esq.
                          Telecopy No.: (404) 815-2424

               (iv) If to the Lenders, to them at the addresses set forth beside
their names on the Lender  Addendum with respect thereto or in an Assignment and
Assumption Agreement.

               (b) Copies  shall be provided  to Persons  other than the parties
hereto only in the case of notices under Article 10 hereof.

               (c) Any party  hereto  may change  the  address to which  notices
shall be  directed  under this  Section  13.1 by giving  ten (10) days'  written
notice of such change to the other parties.

     Section 13.2 Expenses. The Borrower shall promptly pay or reimburse:

               (a) all reasonable legal expenses of the Administrative Agent and
the Collateral Agent and all reasonable other out-of-pocket expenses of the Lead
Arrangers  incurred in connection with the preparation,  negotiation,  execution
and  delivery  of  this  Agreement  and  the  other  Loan  Documents,   and  the
transactions contemplated hereunder and thereunder and the making of the initial
Advance hereunder (whether or not such Advance is made), including, but not

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limited to, the reasonable fees and disbursements of Paul, Hastings,  Janofsky &
Walker LLP,  special  counsel for the  Administrative  Agent and the  Collateral
Agent;

               (b) all reasonable legal expenses of the Administrative Agent and
the Collateral Agent and all other reasonable out-of-pocket expenses of the Lead
Arrangers in connection with the syndication of the Loans;

               (c) all reasonable legal expenses of the Administrative Agent and
the Collateral Agent and all other reasonable out-of-pocket expenses of the Lead
Arrangers in connection with the administration of the transactions contemplated
in this Agreement or the other Loan Documents, and all other reasonable expenses
of the Lead Arrangers  customarily  reimbursed by borrowers for  transactions of
similar size, type and purpose as such transactions; and

               (d) from and after the  occurrence  of an Event of  Default,  all
reasonable  legal and other  out-of-pocket  expenses  of the  Arrangers  and the
Lenders  incurred  in  connection  with any  restructuring  or "work out" of, or
Insolvency  Proceeding  of Holdco,  the  Borrower or any  Designated  Subsidiary
relating to, the  transactions  contemplated by this Agreement or the other Loan
Documents,  and the  preparation,  negotiation,  execution  and  delivery of any
waiver,  amendment or consent by the Arrangers and the Lenders  relating to this
Agreement or the other Loan Documents,  including,  but not limited to, the fees
and  disbursements of any experts,  agents or consultants and of counsel for the
Administrative  Agent and the Collateral  Agent,  and any exercise by any of the
Arrangers  or the  Lenders of their  respective  remedies  provided  for in this
Agreement or the other Loan Documents.

     Section 13.3 Waivers. The rights and remedies of the Agents and the Lenders
under this  Agreement and the other Loan  Documents  shall be cumulative and not
exclusive of any rights or remedies which they would  otherwise have. No failure
or delay by the Agents, the Majority Lenders or the Lenders,  or any of them, in
exercising any right shall operate as a waiver of such right. The Agents and the
Lenders  expressly reserve the right to require strict compliance with the terms
of this  Agreement  in  connection  with any future  funding of a request for an
Advance.  In the event the Lenders  decide to fund an Advance at a time when the
Borrower  is not in strict  compliance  with the terms of this  Agreement,  such
decision by the Lenders shall not be deemed to constitute an  undertaking by the
Lenders to fund any further  Advances  or to preclude  the Lenders or the Agents
from exercising any rights  available to them under the Loan Documents or at law
or equity.  Any waiver or indulgence granted by the Agents, the Majority Lenders
or Lenders shall not constitute a modification of this Agreement,  except to the
extent expressly  provided in such waiver or indulgence,  or constitute a course
of  dealing  at  variance  with the terms of this  Agreement  such as to require
further notice of their intent to require strict  adherence to the terms of this
Agreement in the future.

     Section 13.4  Set-Off.  In addition to any rights now or hereafter  granted
under  Applicable Law and not by way of limitation of any such rights,  upon the
occurrence  of an Event of  Default  and during the  continuation  thereof,  the
Agents and the Lenders are hereby  authorized  by Holdco and the Borrower at any
time or from time to time,  without  notice to Holdco,  the  Borrower  or to any
other Person,  any such notice being hereby expressly  waived, to set-off and to
appropriate  and to apply any and all  deposits  (general  or  special,  time or
demand, including, but not limited to, Indebtedness evidenced by certificates of
deposit,  in each case whether matured or unmatured) and any other  Indebtedness
at any time held or owing by any Lender or any Agent to or for the credit or the

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<PAGE>   129

account of Holdco,  the Borrower or any of the Designated  Subsidiaries  against
and on account of the  Obligations  irrespective  of whether (a) the Lenders and
the  Agents,  or any of them,  shall have made any demand  hereunder  or (b) the
Administrative  Agent shall have  declared the  principal of and interest on the
Loans and other  amounts due  hereunder  to be due and payable as  permitted  by
Section  10.2  hereof  and  although  all or any of such  Obligations  shall  be
contingent or unmatured. The Agent or Lender which has effected such set-off and
application of proceeds shall endeavor to promptly notify the Borrower  thereof,
but the  failure  to give such  notice  shall not affect  the  validity  of such
set-off or application.  Upon direction by the  Administrative  Agent,  with the
consent of the Majority  Lenders,  each Lender holding  deposits of Holdco,  the
Borrower or any of the Designated Subsidiaries shall exercise its set-off rights
as so directed.

     Section 13.5 Successors and Assigns; Participations and Assignments.

          (a) The provisions of this  Agreement  shall be binding upon and inure
to the  benefit  of  Holdco,  the  Borrower  and the  Credit  Parties  and their
respective  successors and assigns,  except that neither the Borrower nor Holdco
may assign or transfer  any of its rights or  obligations  under this  Agreement
without the prior written  consent of each Lender (and any attempted  assignment
or transfer by Holdco or the Borrower  without  such  consent  shall be null and
void).  Nothing in this Agreement,  expressed or implied,  shall be construed to
confer  upon  any  Person  (other  than the  parties  hereto,  their  respective
successors and assigns and, to the extent  expressly  contemplated  hereby,  the
Affiliates of each of the Credit Parties) any legal or equitable  right,  remedy
or claim under or by reason of this Agreement.

          (b) Any Lender  (other than the Swing Loan  Lender)  may,  without the
consent of the Borrower or the Administrative Agent, at any time sell, to one or
more banks or other entities ("Participants")  participating interests in all or
a portion of the rights and  obligations  of such  Lender  under this  Agreement
(including,  without  limitation,  all or a portion of such Lender's Loans,  L/C
Obligations and  Commitments  outstanding  hereunder).  In the event of any such
sale by a Lender of a participating interest to a Participant, (i) such Lender's
obligations  under this Agreement to the other parties to this  Agreement  shall
remain  unchanged,  (ii) such Lender shall  remain  solely  responsible  for the
performance thereof,  (iii) such Lender shall remain the holder of any such Loan
for all purposes under this Agreement and the other Loan Documents, and (iv) the
Borrower and the other Credit Parties 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.  No Lender  shall be entitled to
create in favor of any Participant,  in the participation  agreement pursuant to
which such Participant's  participating  interest shall be created or otherwise,
any  right to vote  on,  consent  to or  approve  any  matter  relating  to this
Agreement  or any other Loan  Document  except for those  matters  specified  as
requiring  the  consent of all Lenders in Section  13.12  hereof.  The  Borrower
agrees  that upon the  occurrence  and  during  the  continuance  of an Event of
Default,  each Participant  shall, to the maximum extent permitted by Applicable
Law,  be deemed to have the right of set-off  in  respect  of its  participating
interest  in amounts  owing  under this  Agreement  to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
this Agreement;  provided that, in purchasing such participating  interest, such
Participant  shall be  deemed  to have  agreed  to share  with the  Lenders  the
proceeds  thereof as provided in Section 2.11(b) as fully as if it were a Lender
hereunder.  The Borrower also agrees that each Participant  shall be entitled to
the  benefits of Section 2.12 and Article 12 of this  Agreement  with respect to
its participation in the Commitments and the Loans outstanding from time to time
as if it were a Lender; provided, further, that, in the case of Section 2.12,

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<PAGE>   130

such Participant shall have complied with the requirements of such Section,  and
provided,  further, that no Participant shall be entitled to receive any greater
amount  pursuant to any such Section 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 (other than the Swing Loan Lender) may assign to one or
more Lenders or Affiliates of a Lender or Approved Funds of any Lender, or, with
the  consent  of the  Administrative  Agent and,  so long as no  Default  exists
hereunder,  the Borrower (which in each case shall not be unreasonably  withheld
or delayed),  to one or more other Eligible  Assignees,  all or a portion of its
rights and obligations under this Agreement (including,  without limitation, all
or a portion of such assigning  Lender's Loans,  L/C Obligations and Commitments
outstanding hereunder); provided that (i) except in the case of an assignment of
the entire remaining amount of the assigning Lender's Loans, L/C Obligations and
Commitments  hereunder  or in  the  case  of an  assignment  to a  Lender  or an
Affiliate  of a Lender or an  Approved  Fund of any  Lender,  (A) the  aggregate
amount of the Loans,  L/C Obligations  and  Commitments of the assigning  Lender
subject to each such  assignment  (determined  as of the date the Assignment and
Assumption  Agreement  with  respect  to such  assignment  is  delivered  to the
Administrative  Agent)  shall  not be less than  $2,500,000,  in the case of any
assignment of the Tranche B Loans, and $5,000,000, in the case of any assignment
of the other Loans, L/C Obligations and Commitments, and (B) after giving effect
to any such assignment,  the aggregate  amount of the assigning  Lender's Loans,
L/C Obligations  and Commitments  hereunder shall not be less than $2,500,000 in
the case of Tranche B Loans, and $5,000,000, in the case of the other Loans, L/C
Obligations and  Commitments,  unless each of the  Administrative  Agent and, so
long as no Default exists hereunder,  the Borrower  otherwise consent (each such
consent not to be unreasonably withheld or delayed, (ii) each partial assignment
shall be made as an assignment of a  proportionate  part of all of the assigning
Lender's rights and obligations under this Agreement with respect to the type of
Commitment  or Loan  being  assigned,  except  that this  clause  (ii) shall not
prohibit  any  Lender  from  assigning  all  or a  portion  of  its  rights  and
obligations  among  separate  types of  Commitments  or Loans on a non-pro  rata
basis, and (iii) the parties to each assignment shall execute and deliver to the
Administrative  Agent an Assignment  and  Assumption  Agreement  executed by the
applicable  Assignee and assigning  Lender (and, in the case of an Assignee that
is not then a Lender  or an  Affiliate  of a Lender  or an  Approved  Fund  with
respect to a Lender,  by the  Administrative  Agent  and,  so long as no Default
exists hereunder, the Borrower),  together with a processing and recordation fee
of $1,000 (except that in the case of assignments on the same day by a Lender to
more than one fund  managed or advised by the same  investment  advisor,  only a
single  $1,000 fee shall be payable for all such  assignments  by such Lender to
such funds),  and each Eligible  Assignee  shall  deliver to the  Administrative
Agent a  completed  administrative  questionnaire  in the form  required  by the
Administrative  Agent and all tax  forms,  certifications  and  other  documents
required to be provided by such Eligible Assignee as a Lender hereunder. Subject
to acceptance  and recording  thereof by the  Administrative  Agent  pursuant to
paragraph (d) of this Section 13.5,  from and after the effective date specified
in  each  Assignment  and  Assumption  Agreement,   (x)  the  Eligible  Assignee
thereunder  shall be a party hereto and, to the extent of the interest  assigned
under such Assignment and Assumption Agreement,  have the rights and obligations
of a Lender under this Agreement with respect to the Loans and  Commitments  set
forth in such Assignment and Assumption Agreement,  and (y) the assigning Lender
thereunder  shall, to the extent of the interest  assigned under such Assignment
and Assumption Agreement, be released from its obligations under this Agreement

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(and, in the case of an Assignment and Assumption  Agreement covering all of the
remaining  portion of an assigning  Lender's rights and  obligations  under this
Agreement,  such  assigning  Lender  shall cease to be a party  hereto but shall
nonetheless  continue  to be  entitled  to the  benefits  of, and subject to the
obligations set forth in, Sections 2.11, 2.13, 2.14, 6.10,  11.11, 12.3 and 13.2
hereof).  Any  assignment  or transfer by a Lender of its rights or  obligations
under this  Agreement  that does not comply with this Section  13.5(c)  shall be
treated  for  purposes  of  this  Agreement  as  a  sale  by  such  Lender  of a
participation in such rights and obligations in accordance with paragraph (b) of
this Section 13.5.

          (d)  The  Administrative  Agent,  on  behalf  of the  Borrower,  shall
maintain at the address of the Administrative Agent referred to in Section 13.1,
a copy  of  each  Assignment  and  Assumption  Agreement  delivered  to it and a
register (the  "Register") for the recordation of the names and addresses of the
Lenders and the  Commitments  of, and  principal  amounts of the Loans owing to,
each  Lender  from  time to time  (whether  or not  evidenced  by a  Note).  Any
assignment  or  transfer of all or part of a Loan  evidenced  by a Note shall be
registered on the Register only upon surrender for registration of assignment or
transfer  of the Note  evidencing  such  Loan,  accompanied  by a duly  executed
Assignment and Assumption Agreement,  and thereupon one or more new Notes in the
same aggregate  principal amount shall be issued to the designated  Assignee and
the old Note  shall be  returned  by the  Administrative  Agent to the  Borrower
marked  "canceled".  The entries in the  Register  shall be  conclusive,  in the
absence of manifest  error,  and the Borrower and the Credit Parties shall treat
each Person  whose name is  recorded  in the  Register as the owner of a Loan or
other  obligation  hereunder  as the  owner  thereof  for all  purposes  of this
Agreement  and the  other  Loan  Documents,  notwithstanding  any  notice to the
contrary.  Any  assignment  of any  Loan or  other  obligation  (whether  or not
evidenced by a Note) hereunder shall be effective only upon appropriate  entries
with respect thereto being made in the Register. The Register shall be available
for  inspection by the Borrower or any Credit Party at any  reasonable  time and
from time to time upon reasonable prior notice.

          (e) The  Borrower  hereby  authorizes  each  Lender to disclose to any
Participant  or Eligible  Assignee  (each a  "Transferee")  and any  prospective
Transferee,  subject to such Person  agreeing to comply with the  provisions  of
Section 13.17 of this Agreement,  any and all financial and other information in
such Lender's  possession  concerning the Borrower and its Affiliates  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  Affiliates  prior to
becoming a party to this Agreement.

          (f) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure the  obligations
of such Lender,  including,  without  limitation,  any pledge or  assignment  to
secure  obligations to a Federal  Reserve Bank;  provided that no such pledge or
assignment  of a  security  interest  shall  release  a  Lender  from any of its
obligations  under this Agreement or substitute any such pledgee or assignee for
such  Lender as a party  hereto.  In the case of any Lender  that is a fund that
invests in bank loans,  such Lender may,  without the consent of the Borrower or
the  Administrative  Agent,  assign or pledge all or any portion of its Notes or
any other  instrument  evidencing its rights as a Lender under this Agreement to
any trustee for, or any other  representative of, holders of obligations owed or
securities issued, by such fund, as security for such obligations or securities;
provided   that  any   foreclosure   or  similar   action  by  such  trustee  or
representative shall be subject to the provisions of this Section 13.5 regarding
assignments.

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          (g) Any Person  purchasing a  participation  or an assignment of Loans
from any Lender  shall be required to  represent  and warrant  that its purchase
shall not  constitute a "prohibited  transaction"  (as defined in Section 5.1(m)
hereof).

          (h) Each  Lender  agrees to provide the  Administrative  Agent and the
Borrower  with  prompt  written  notice of any  issuance of  assignments  of its
interests hereunder.

          (i) No  assignment,  participation  or other transfer of any rights by
any Lender  hereunder or under the Notes shall be affected  that would result in
any interest  requiring  registration under the Securities Act, or qualification
under any state securities law.

          (j) No such  assignment  may be made to any Lender or other  financial
institution  (x) with  respect to which a receiver  or  conservator  (including,
without limitation,  the Federal Deposit Insurance  Corporation or the Office of
Thrift   Supervision)  has  been  appointed  or  (y)  that  is  not  "adequately
capitalized"  (as such term is defined in Section  131(b)(1)(B)  of the  Federal
Deposit  Insurance  Corporation  Improvement  Act as in effect on the  Agreement
Date).

          (k)  Notwithstanding  anything to the contrary  contained herein,  any
Lender (a "Granting  Lender")  may grant to a special  purpose  funding  vehicle
("SPC"),  identified as such in writing from time to time by the Granting Lender
to the  Administrative  Agent and the  Borrower,  the  option to  provide to the
Borrower  all or any  part  of any  Advance  that  such  Granting  Lender  would
otherwise  be  obligated  to make to the  Borrower  pursuant to this  Agreement;
provided  that,  at the time such  transfer  is made,  one of the  Agents or the
Lenders shall be the liquidity  provider and/or the  administrator  of such SPC;
provided  further that (i) nothing  herein shall  constitute a commitment by any
SPC to make any  Advance;  (ii) if an SPC elects not to exercise  such option or
otherwise fails to provide all or any part of such Advance,  the Granting Lender
shall be obligated to make such Advance  pursuant to the terms  hereof,  and the
Granting Lender shall be liable  hereunder  generally for all acts and omissions
of such SPC as if such acts and omissions were committed by the Granting Lender;
(iii) an SPC shall have no rights or benefits  under this  Agreement or any Note
or any other Loan Document, with its rights against the Granting Lender being as
set forth in any agreements between such SPC and the Granting Lender, and an SPC
shall not  constitute  a "Lender"  hereunder;  (iv) all  amounts  payable by any
Credit  Party to the  Granting  Lender  shall be  determined  as if the Granting
Lender had not granted such option,  and as if the Granting  Lender were funding
each of its Advances and its share of the Commitments in the same way that it is
funding the portion of such Advances and its share of the  Commitments  in which
no such option has been granted;  and (v) in no event shall the Granting  Lender
agree with an SPC to take or refrain from taking any action under this Agreement
or any Note or any other Loan  Document,  except  that the  Granting  Lender may
agree with an SPC that it will not,  without the  consent of such SPC,  agree to
any modification, supplement or waiver of this Section 13.5(k). The making of an
Advance by an SPC hereunder  shall utilize the Commitment of the Granting Lender
to the same extent,  and as if, such Advance were made by such Granting  Lender.
Each party hereto hereby agrees that no SPC shall be liable for any indemnity or
similar payment  obligation  under this Agreement (all liability for which shall
remain with the Granting  Lender).  In furtherance of the foregoing,  each party
hereto hereby  agrees (which  agreement  shall survive the  termination  of this
Agreement)  that,  prior to the date  that is one  year  and one day  after  the
payment in full of all outstanding commercial paper or other senior Indebtedness
of any  SPC,  it will  not  institute  against,  or join  any  other  person  in
instituting  against,   such  SPC  any  Insolvency   Proceeding.   In  addition,
notwithstanding  anything to the contrary in this Section 13.5,  any SPC may (I)
with notice to, but without the prior written consent of, the Borrower and the

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Administrative Agent and without paying any processing fee therefor,  assign all
or a portion of its  interests in any Advances to the Granting  Lender or to any
financial  institutions  (consented  to by the Borrower  and the  Administrative
Agent)  providing  liquidity and/or credit support to or for the account of such
SPC to support the funding or  maintenance  of Advances,  and (II) disclose on a
confidential  basis any non-public  information  relating to its Advances to any
rating agency,  commercial paper dealer or provider of any surety,  guarantee or
credit or liquidity enhancement to such SPC (each, a "Credit Support Provider"),
provided that the applicable  rating agency or Credit Support Provider agrees in
writing for the benefit of the Borrower to keep such  information  confidential.
As this Section  applies to any particular  SPC, this Section may not be amended
without the written consent of such SPC.

     Section 13.6  Accounting  Principles.  Except as set forth in the following
sentence, references in this Agreement to GAAP shall be to such principles as in
effect  from  time to  time,  and  all  accounting  terms  used  herein  without
definition  shall be used as defined  under  GAAP.  All  financial  calculations
hereunder shall,  unless otherwise  stated,  be determined for the Borrower on a
consolidated basis with the Designated Subsidiaries.

     Section 13.7 Counterparts.  This Agreement may be executed in any number of
counterparts,  each of which  shall be  deemed to be an  original,  but all such
separate counterparts shall together constitute but one and the same instrument.
In  proving  this   Agreement  or  any  other  Loan  Document  in  any  judicial
proceedings,  it shall not be  necessary to produce or account for more than one
such  counterpart  signed by the party against whom such  enforcement is sought.
Any signatures delivered by a party by facsimile transmission shall be deemed an
original signature hereto.

     Section 13.8 Governing Law. THIS AGREEMENT AND THE NOTES SHALL BE CONSTRUED
IN  ACCORDANCE  WITH AND GOVERNED BY THE INTERNAL  LAWS OF THE STATE OF NEW YORK
APPLICABLE  TO  AGREEMENTS  MADE AND TO BE  PERFORMED  IN NEW  YORK AND  WITHOUT
REFERENCE TO THE CONFLICTS OR CHOICE OF LAWS PRINCIPLES THEREOF.

     Section  13.9  Severability.  Any  provision  of this  Agreement  which  is
prohibited or  unenforceable  in any  jurisdiction  shall be  ineffective to the
extent  of  such  prohibition  or  unenforceability   without  invalidating  the
remaining  provisions  hereof in that  jurisdiction or affecting the validity or
enforceability of such provision in any other jurisdiction.

     Section 13.10 Interest.

          (a) In no event shall the amount of interest due or payable  hereunder
or under the Notes  exceed the maximum  rate of interest  allowed by  Applicable
Law, and in the event any such payment is inadvertently  made by the Borrower or
inadvertently received by any Lender then such excess sum shall be credited as a
payment of principal,  unless the Borrower shall notify the Administrative Agent
or such  Lender,  as  applicable,  in writing that it elects to have such excess
returned  forthwith.  It is the express  intent hereof that the Borrower not pay
and the Lenders not receive,  directly or indirectly  in any manner  whatsoever,
interest  in excess of that  which may  legally  be paid by the  Borrower  under
Applicable Law.

                                       127
<PAGE>   134

          (b)  Notwithstanding  the use by the  Lenders of the Base Rate and the
Eurodollar  Rate as  reference  rates for the  determination  of interest on the
Loans,  the  Lenders  shall be under no  obligation  to  obtain  funds  from any
particular  source in order to charge interest to the Borrower at interest rates
related to such reference rates.

     Section 13.11 Headings. Headings used in this Agreement are for convenience
only and  shall not in any way  modify  or amend any of the terms or  provisions
hereof  nor be used in  connection  with  the  interpretation  of any  provision
hereof.

     Section 13.12  Amendment and Waiver.  Neither this  Agreement nor any other
Loan Document  (other than Interest  Hedge  Agreements),  nor any term hereof or
thereof,  may be  amended  orally,  nor may any  provision  hereof or thereof be
waived  orally,  but only by an instrument in writing signed by (or, in the case
of Security  Documents executed by the Collateral Agent signed by the Collateral
Agent and approved by) the Majority Lenders and, in the case of an amendment, by
the Borrower,  except that (a)(i) any increase in the amount of the  Commitments
of any Lender shall  require the consent of such Lender;  (ii) any  amendment to
the  application  of  payments  set forth in Section  2.7(e)  shall  require the
consent of the Majority Pro Rata Lenders and the Majority Tranche B Lenders; and
(iii) in the event of (A) any delay or  extension  in the terms of  repayment or
change in the order of application of repayment of the Loans provided in Section
2.6 hereof or any change in the scheduled reductions in the Revolving Commitment
or the Tranche A Commitment  under Sections  2.6(a) and (b) or any change in the
reimbursement  obligations  under any Letter of  Credit,  (B) any  reduction  in
principal,  interest or fees due  hereunder  or any delay in paying  interest or
fees hereunder, (C) any release of any substantial portion of the Collateral for
the Loans  other than a release  of any  portion  of the  Collateral  related to
SpectraSite  Mexico or a release of any portion of the  Collateral in connection
with a Permitted  Disposition,  (D) any waiver of any Default due to the failure
by the  Borrower  to pay any sum due to any of the  Lenders  hereunder,  (E) any
release of any Guaranty (or any guarantor  thereunder)  of all or any portion of
the  Obligations  other than a release of any Guaranty  provided by any Domestic
SpectraSite  Mexico  Subsidiary or a release of any other Guaranty in connection
with a Permitted Disposition,  (F) any amendment, whether direct or indirect, of
this Section 13.12,  or of the definition of "Majority  Lenders",  or, except in
connection with the  implementation  of the  Incremental  Facility to the extent
necessary to accord the various types of Incremental  Facility  Loans  treatment
similar to the treatment  accorded  Loans of a similar type  thereunder,  of any
portion of  Sections  2.9(c),  6.10,  10.3 or  Article 12 as they  relate to the
relative  priority of payment among the Obligations,  or (G) any other provision
of this Agreement or any of the other Loan Documents  specifically requiring the
consent or approval of each of the Lenders,  any  amendment or waiver or consent
may be made only by an  instrument  in  writing  signed  by (or,  in the case of
Security  Documents  executed by the Collateral Agent,  signed by the Collateral
Agent and approved by) each of the Lenders and, in the case of an amendment,  by
the Borrower. Any amendment to any provision hereunder, or any waiver or consent
with respect thereto, governing the rights,  obligations,  or liabilities of the
Administrative  Agent in its capacity as such, may be made only by an instrument
in  writing  signed  by the  Administrative  Agent  and by each of the  Lenders.
Notwithstanding the foregoing,  in the event that any amendment to any provision
hereunder,  or any waiver or consent with  respect  thereto,  shall  require the
approval of each of the Lenders and any Lender fails to provide  such  approval,
so long as no Default or Event of Default then exists,  the Borrower may, in its
discretion,  provide a  replacement  lender or  lenders  for such  non-approving
Lender,  which replacement  lender or lenders will be subject to the approval of
the Lead Arrangers, which shall not be unreasonably withheld, and the

                                       128
<PAGE>   135

Administrative  Agent, such non-approving Lender and the Borrower shall take all
necessary  actions to transfer  promptly the rights,  duties and  obligations of
such  non-approving  Lender to such  replacement  lender or lenders  (including,
without limitation,  the payment in full of all Obligations hereunder due to the
non-approving Lender being replaced).

     Section  13.13 Entire  Agreement.  Except as otherwise  expressly  provided
herein,  this Agreement and the other documents described or contemplated herein
embody the entire  agreement  and  understanding  among the  parties  hereto and
thereto and supersede all prior  agreements and  understandings  relating to the
subject matter hereof and thereof.

     Section 13.14 Other  Relationships.  No relationship  created  hereunder or
under any other Loan Document  shall in any way affect the ability of any Credit
Party or any of their respective  Affiliates to enter into or maintain  business
relationships   with  the  Borrower  or  any  of  its   Affiliates   beyond  the
relationships  specifically  contemplated  by this  Agreement and the other Loan
Documents.

     Section 13.15 Loan Documents. The Indebtedness of the Borrower evidenced by
the Notes is secured by the  Security  Documents  and is intended by the parties
hereto to be in parity with the Interest Hedge Agreements in effect from time to
time  between the  Borrower and any Lender and senior in right of payment to all
other  Borrower Debt except to the extent  expressly  contemplated  hereby.  All
references to this Agreement or to any other Loan Document  whether herein or in
any other  Loan  Document  shall  refer to this  Agreement  or such  other  Loan
Document  as the  same  may be  amended,  restated,  supplemented  or  otherwise
modified  from  time to time.  To the  extent  that  any of the  Loan  Documents
executed in connection  with the closing of the Prior Credit  Agreement have not
been  amended  or amended  and  restated  in  connection  with the  transactions
contemplated  by  this  Agreement,  the  parties  hereby  acknowledge  that  all
references  contained  therein to the "Credit  Agreement" shall be references to
this Agreement and that all references  contained  therein to the "Senior Credit
Parties" shall be deemed to include all of the Credit Parties.

     Section  13.16  Reliance  on  and  Survival  of  Various  Provisions.   All
covenants, agreements, statements, representations and warranties made herein or
in any  certificate  delivered  pursuant hereto (i) shall be deemed to have been
relied  upon by each of the Agents and each of the Lenders  notwithstanding  any
investigation  heretofore or hereafter  made by them, and (ii) shall survive the
execution and delivery of the Notes and shall  continue in full force and effect
so long as any Note is  outstanding  and  unpaid.  Any right to  indemnification
hereunder,  including,  without  limitation,  rights  pursuant to Sections 2.10,
2.12,  2.13,  2.14,  6.10,  11.11,  12.3  and 13.2  hereof,  shall  survive  the
termination  of this  Agreement  and the payment and  performance  of all of the
Obligations.

     Section 13.17 Confidentiality.  All agreements,  instruments, documents and
other information received pursuant to this Agreement or any other Loan Document
by the Credit Parties shall be held in confidence by the Credit Parties,  except
for disclosures made (a) in connection with assignments of or  participations in
the Loans made pursuant to Section 13.5 hereof  (provided that such assignees or
participants  shall agree in writing to keep such  information  confidential  as
provided  herein),  (b)  as  otherwise  required  to  be  disclosed  by  banking
regulations,   process  of  law  or  other  Applicable  Law,  or  to  government
regulators, (c) of information received by a Credit Party without restriction as
to its disclosure or use from a Person who, to such Credit Party's  knowledge or
reasonable belief, was not prohibited from disclosing it by any duty of

                                       129
<PAGE>   136

confidentiality,  (d) in connection with litigation  arising from this Agreement
or any  other  Loan  Document  to  which  a  Credit  Party  is a  party,  (v) of
information  which is or has become  public  (other  than  through  unauthorized
disclosure by any Credit Party), (vi) to the attorneys,  accountants,  and other
expert  consultants  (including rating agencies) for any Credit Party (who shall
be requested to similarly  hold such  information in  confidence),  (vii) to any
direct or indirect  contractual  counterparty  of a Lender in connection  with a
swap agreement or such contractual  counterparty's  professional advisor so long
as such contractual  counterparty or professional  advisor,  as the case may be,
agrees in writing to be bound by the provisions of this Section 13.17, (viii) to
the National Association of Insurance  Commissioners or any similar organization
or any nationally  recognized  rating agency that requires access to information
about a Lender's  investment  portfolio in connection  with ratings  issued with
respect to such Lender, or (ix) as otherwise permitted hereunder.

     Section 13.18 Delivery of Lender Addenda.  Each initial Lender shall become
a party to this  Agreement by  delivering to the  Administrative  Agent a Lender
Addendum  duly  executed by such Lender,  the  Borrower  and the  Administrative
Agent.

          ARTICLE 14 - Waiver of Jury Trial; Consent to Jurisdiction.

     Section 14.1 Waiver of Jury Trial. HOLDCO AND THE BORROWER,  FOR ITSELF AND
ON BEHALF OF EACH OF THE DESIGNATED SUBSIDIARIES, AND EACH OF THE CREDIT PARTIES
HEREBY  WAIVE THE  RIGHT TO A TRIAL BY JURY IN ANY  COURT  AND IN ANY  ACTION OR
PROCEEDING OF ANY TYPE IN WHICH  HOLDCO,  THE  BORROWER,  ANY OF THE  DESIGNATED
SUBSIDIARIES OR ANY OF THE CREDIT PARTIES, OR ANY OF THEIR RESPECTIVE SUCCESSORS
OR  ASSIGNS,  IS A PARTY,  AS TO ALL  MATTERS  AND THINGS  ARISING  DIRECTLY  OR
INDIRECTLY  OUT OF THIS  AGREEMENT  OR ANY OF THE OTHER LOAN  DOCUMENTS  AND THE
RELATIONS AMONG THE PARTIES LISTED IN THIS SECTION 14.1.

     Section  14.2  Consent  to  Jurisdiction.  THE  BORROWER  AND  EACH  OF THE
ADMINISTRATIVE  AGENT,  THE OTHER AGENTS AND THE LENDERS AGREE THAT ANY SUIT FOR
THE  ENFORCEMENT  OF THIS  AGREEMENT OR ANY OF THE OTHER LOAN  DOCUMENTS  MAY BE
BROUGHT  IN THE  COURTS OF THE STATE OF NEW YORK OR ANY  FEDERAL  COURT  SITTING
THEREIN AND EACH CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND THE
SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER BY CERTIFIED OR
REGISTERED  MAIL AT THE ADDRESS  SPECIFIED IN SECTION 13.1. THE BORROWER  HEREBY
WAIVES ANY OBJECTION  THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       130
<PAGE>   137

The following exhibits and schedules have been omitted and will be submitted to
the SEC upon request.

                     EXHIBITS

   Exhibit A         -       Form of Assignment and Assumption Agreement
   Exhibit B         -       Form of Borrower Pledge Agreement
   Exhibit C         -       Form of Certificate of Financial Condition
   Exhibit D         -       Form of Holdco Pledge Agreement
   Exhibit E-1       -       Form of Amended and Restated Borrower
                             Trademark Security Agreement
   Exhibit E-2       -       Form of Subsidiary Trademark Security Agreement
   Exhibit E-3       -       Form of Patent Security Agreement
   Exhibit F         -       Form of Lender Addendum
   Exhibit G         -       Copy of Nextel Intercreditor Agreement
   Exhibit H         -       Form of Notice of Conversion/Continuation
   Exhibit I         -       Form of Performance Certificate
   Exhibit J         -       Form of Request for Advance
   Exhibit K         -       Form of Request for Issuance of Letter of Credit
   Exhibit L         -       Form of Revolving Note
   Exhibit M         -       Form of Security Agreement
   Exhibit N         -       Form of Subsidiary Guaranty
   Exhibit O         -       Form of Subsidiary Pledge Agreement
   Exhibit P         -       Form of Subsidiary Security Agreement
   Exhibit Q         -       Form of Swing Loan Note
   Exhibit R         -       Form of Tranche A Note
   Exhibit S         -       Form of Tranche B Note
   Exhibit T         -       Form of Use of Proceeds Letter
   Exhibit U         -       Form of Swing Loan Request
   Exhibit V         -       Form of Borrower's Loan Certificate
   Exhibit W         -       Form of Guarantor's Loan Certificate
   Exhibit X         -       Form of New Subsidiary Questionnaire

                     SCHEDULES

   Schedule 1        -       Allocation of Commitments among Lenders
                             and Lenders' Addresses for Notice
   Schedule 2.14     -       Letters of Credit as of the Agreement Date
   Schedule 5.1(c)   -       Capitalization
   Schedule 5.1(h)   -       Title to Assets
   Schedule 5.1(i)   -       Litigation
   Schedule 5.1(m)   -       ERISA
   Schedule 5.1(q)   -       Intellectual Property
   Schedule 5.1(s)   -       Agreements with Affiliates
   Schedule 5.1(t)   -       Environmental Matters
   Schedule 5.1(u)   -       Labor Matters
   Schedule 5.1(x)   -       Investments
   Schedule 5.1(y)   -       Material Contracts<PAGE>   1
                                                                   EXHIBIT 10.18

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

                                 $3,000,000,000

                                CREDIT AGREEMENT

                                      AMONG

                       CLEAR CHANNEL COMMUNICATIONS, INC.

                 BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT,

                                       AND

                   CHASE SECURITIES INC., AS SYNDICATION AGENT

                                       AND

                                 CERTAIN LENDERS

                                 AUGUST 30, 2000

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

                         BANC OF AMERICA SECURITIES, LLC

                                       and

                              CHASE SECURITIES INC.

                 AS JOINT LEAD ARRANGERS and JOINT BOOK MANAGERS

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

<PAGE>   2

                                       TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                    Page
                                                                                    ----
                                          ARTICLE 1

                                         Definitions
<S>                                                                                  <C>
        Section 1.1   Defined Terms...............................................   1
        Section 1.2   Amendments and Renewals.....................................   30
        Section 1.3   Construction................................................   30

                                          ARTICLE 2

                                            Loans

        Section 2.1   The Loans and Advances Thereunder...........................   31
        Section 2.2   Manner of Borrowing and Disbursement........................   33
        Section 2.3   Interest....................................................   41
        Section 2.4   Fees........................................................   43
        Section 2.5   Prepayment..................................................   44
        Section 2.6   Reduction and Change of Commitments.........................   45
        Section 2.7   Non-Receipt of Funds by the Administrative Agent............   46
        Section 2.8   Payment of Principal of Advances............................   46
        Section 2.9   Reimbursement...............................................   47
        Section 2.10  Manner of Payment...........................................   47
        Section 2.11  Lending Offices.............................................   50
        Section 2.12  Sharing of Payments.........................................   50
        Section 2.13  Calculation of LIBOR Rate, Offshore Dollar Rate and
                      Approved Offshore Currency Rate.............................   50
        Section 2.14  Booking Loans...............................................   50
        Section 2.15  Taxes.......................................................   51
        Section 2.16  Letters of Credit...........................................   53
        Section 2.17  Extension Option and Conversion Option Relating to
                      the Working Line Loan.......................................   60
        Section 2.18  Uncommitted Increase of the Revolving Credit Commitment.....   61

                                          ARTICLE 3

                                     Conditions Precedent

        Section 3.1   Conditions Precedent to Closing and the Initial Advance
                      and the Letters of Credit...................................   63
        Section 3.2   Conditions Precedent to All Advances and Letters of Credit..   65

                                          ARTICLE 4

                                Representations and Warranties

        Section 4.1   Representations and Warranties..............................   66
        Section 4.2   Survival of Representations and Warranties, etc. ...........   74

                                          ARTICLE 5

                                      General Covenants

        Section 5.1   Preservation of Existence and Similar Matters...............   74
        Section 5.2   Business; Compliance with Applicable Law....................   75
</TABLE>

                                       ii

<PAGE>   3

<TABLE>
<S>                                                                                  <C>
        Section 5.3   Maintenance of Properties...................................   75
        Section 5.4   Accounting Methods and Financial Records....................   75
        Section 5.5   Insurance...................................................   75
        Section 5.6   Payment of Taxes and Claims.................................   75
        Section 5.7   Visits and Inspections......................................   76
        Section 5.8   Payment of Debt for Borrowed Money..........................   76
        Section 5.9   Use of Proceeds.............................................   76
        Section 5.10  Indemnity...................................................   76
        Section 5.11  Environmental Law Compliance................................   77
        Section 5.12  Conversion of Unrestricted Subsidiaries.....................   78
        Section 5.13  Year 2000 Compliance........................................   78
        Section 5.14  AMFM Entities and SFX Entities..............................   78
        Section 5.15  Collateral Sharing and Intercreditor Arrangement............   80

                                          ARTICLE 6

                                    Information Covenants

        Section 6.1   Quarterly Financial Statements and Information..............   80
        Section 6.2   Annual Financial Statements and Information; Certificate
                      of No Default ..............................................   81
        Section 6.3   Compliance Certificates.....................................   81
        Section 6.4   Copies of Other Reports and Notices.........................   81
        Section 6.5   Notice of Litigation, Default and Other Matters.............   82
        Section 6.6   ERISA Reporting Requirements................................   83

                                          ARTICLE 7

                                      Negative Covenants

        Section 7.1   Debt for Borrowed Money.....................................   84
        Section 7.2   Liens.......................................................   85
        Section 7.3   Investments.................................................   86
        Section 7.4   Amendment and Waiver........................................   86
        Section 7.5   Liquidation, Disposition or Acquisition of Assets, Merger,
                      New Subsidiaries ...........................................   86
        Section 7.6   Dividends...................................................   87
        Section 7.7   Affiliate Transactions......................................   87
        Section 7.8   Compliance with ERISA.......................................   87
        Section 7.9   Leverage Ratio..............................................   88
        Section 7.10  Interest Coverage Ratio. ...................................   88
        Section 7.11  Sale and Leaseback..........................................   88
        Section 7.12  Sale or Discount of Receivables.............................   88
        Section 7.13  Business of Clear Channel Television Licenses, Inc.
                      and Clear Channel Broadcasting Licenses, Inc. ..............   88

                                          ARTICLE 8

                                           Default

        Section 8.1   Events of Default...........................................   89
        Section 8.2   Remedies....................................................   92
</TABLE>

                                      iii

<PAGE>   4

<TABLE>
                                          ARTICLE 9

                                   Changes in Circumstances

<S>                                                                                  <C>
        Section 9.1   LIBOR Basis Determination Inadequate........................   92
        Section 9.2   Offshore Basis Determination Inadequate.....................   93
        Section 9.3   Illegality..................................................   93
        Section 9.4   EMU Changes.................................................   93
        Section 9.5   Increased Costs.............................................   94
        Section 9.6   Effect On Base Rate Advances................................   95
        Section 9.7   Mandatory Revolver Advance..................................   95
        Section 9.8   Capital Adequacy............................................   96
        Section 9.9   Rights of a Borrower in Respect of Consequential Losses.....   96

                                          ARTICLE 10

                                   Agreement Among Lenders

        Section 10.1  Agreement Among Lenders.....................................   97
        Section 10.2  Lender Credit Decision......................................   99
        Section 10.3  Benefits of Article.........................................   99

                                          ARTICLE 11

                                        Miscellaneous

        Section 11.1  Notices.....................................................    99
        Section 11.2  Expenses....................................................   100
        Section 11.3  Waivers.....................................................   101
        Section 11.4  Determination by the Lenders Conclusive and Binding.........   101
        Section 11.5  Set-Off.....................................................   101
        Section 11.6  Assignment..................................................   102
        Section 11.7  Counterparts................................................   104
        Section 11.8  Severability................................................   104
        Section 11.9  Interest and Charges........................................   104
        Section 11.10 Headings....................................................   104
        Section 11.11 Amendment and Waiver........................................   105
        Section 11.12 Exception to Covenants......................................   105
        Section 11.13 No Liability of any Issuing Bank............................   106
        Section 11.14 Conversion of Currencies....................................   106
        Section 11.15 Credit Agreement Governs....................................   106
        SECTION 11.16 GOVERNING LAW...............................................   107
        SECTION 11.17 WAIVER OF JURY TRIAL........................................   107
        SECTION 11.18 ENTIRE AGREEMENT............................................   107
        Section 11.19 Confidentiality.............................................   107
        Section 11.20 Qualified Commercial Loan...................................   108
</TABLE>

                                       iv

<PAGE>   5

                             SCHEDULES AND EXHIBITS

Schedule  1.2:       Lending Offices, including Approved Offshore Lending and
                     Payment Offices
Schedule  1.3:       Existing Liens
Schedule  1.4:       Acquired Letters of Credit
Schedule  4.1(a):    Subsidiaries
Schedule  4.1(h):    Existing Litigation
Schedule  4.1(k):    Material Adverse Changes and Defaults or Events of Defaults
Schedule  7.1:       Existing Indebtedness
Schedule  7.3:       Existing Investments

Exhibit  A:           Form of Revolving Credit Note
Exhibit  B:           Form of Swingline Note
Exhibit  C:           Form of Working Line Note
Exhibit  D:           Form of Bid Rate Note-Revolving Credit
Exhibit  E:           Form of Bid Rate Note-Working Line
Exhibit  F:           Form of SFX/AMFM Limited Subsidiary Guaranty
Exhibit  G:           Form of Compliance Certificate
Exhibit  H:           Form of Assignment Agreement
Exhibit  I:           Form of Intercompany Notes
Exhibit  J:           Form of Intercompany Note Pledge Agreement
Exhibit  K:           Form of Notice of Change of Senior Unsecured Debt Rating
Exhibit  L:           Form of Notice of Borrowing
Exhibit  M:           Form of Notice of Continuation/Conversion
Exhibit  N:           Form of Bid Rate Advance Request
Exhibit  O:           Form of Confirmation of Bid
Exhibit  P:           Form of Invitation to Bid
Exhibit  Q:           Form of Notice of Acceptance of Bid

                                       v

<PAGE>   6

                                CREDIT AGREEMENT

        THIS CREDIT AGREEMENT is dated as of August 30, 2000, among CLEAR
CHANNEL COMMUNICATIONS, INC., a Texas corporation ("Borrower"), the Lenders from
time to time party hereto, BANK OF AMERICA, N.A., a national banking
association, as administrative agent for the Lenders and CHASE SECURITIES INC.,
as Syndication Agent.

                                   BACKGROUND

        The Borrower has asked, and the Administrative Agent, the Syndication
Agent and certain lenders have agreed to provide, (a) a $3,000,000,000 credit
facility for the Borrower in the form of (i) a $1,500,000,000 five year
revolving credit facility (which will have subfacilities for competitive bid
loans, letters of credit, offshore currencies and swingline borrowings
(swingline borrowings to be available in Dollars and in certain offshore
currencies), and (ii) a $1,500,000,000 364-day working line revolving credit
facility which may be (at the Borrower's option) (A) converted to a term loan
with one payment in full on the maturity date of the revolving credit facility
or (B) with the consent of the Lenders as required herein, extended annually for
additional 364 day periods (but not beyond the maturity of the revolving credit
facility) (which will have a subfacility for competitive bid loans); and (b) an
uncommitted increase possibility of the revolving credit facility by an
aggregate amount of up to $2,000,000,000.

        In consideration of the mutual covenants and agreements contained
herein, and other good and valuable consideration hereby acknowledged, the
parties hereto agree as follows:

                                    ARTICLE 1

                                   Definitions

        Section 1.1 Defined Terms. For purposes of this Agreement:

        "Acquired Letters of Credit" means (a) after the consummation of the
AMFM Acquisition, those stand-by letters of credit described on Schedule 1.4
hereto issued by a Secondary Issuing Bank on behalf of an AMFM Entity, and/or
(b) after the consummation of the SFX Acquisition, those stand-by letters of
credit described on Schedule 1.4 hereto issued by a Secondary Issuing Bank on
behalf of an SFX Entity, and in the case of each letter of credit described in
(a) and (b) above, each

                                       1
<PAGE>   7

extension or replacement thereof, or amendment thereto, so long as in each case
the face amount of each such stand-by letter of credit is not increased.

        "Acquisition" means (whether by purchase, exchange, issuance of stock or
other equity or debt securities, merger, reorganization or any other method) (i)
any acquisition by the Borrower or any of its Restricted Subsidiaries of any
other Person, which Person shall then become consolidated with the Borrower or
any such Restricted Subsidiary in accordance with GAAP, or (ii) any acquisition
by the Borrower or any of its Restricted Subsidiaries of all or any substantial
amount of the assets of any other Person. For purposes of the preceding
sentence, an amount of assets shall be deemed to be "substantial" if such assets
have a fair market value in excess of $1,000,000; provided, however, that the
purchase of equipment and other goods and services in the ordinary course of
business shall not be deemed to be "Acquisitions".

        "ARN" means the Australian Radio Network Limited, PTY, an Australian
propriety company, 50% of whose Capital Stock is owned by the Borrower.

        "Additional Costs" has the meaning set forth in Section 9.8 hereof.

        "Administrative Agent" means Bank of America, N.A., as administrative
agent for the Lenders, or such successor administrative agent appointed pursuant
to Section 10.1(b) hereof.

        "Advance" means a Revolving Credit Advance, an Offshore Bid Rate
Advance, a Working Line Advance, a Base Rate Advance, a Bid Rate Advance or a
LIBOR Advance, as applicable, including, without limitation, any Mandatory
Revolver Advance, and "Advances" means Revolving Credit Advances, Offshore Bid
Rate Advances and Working Line Advances (including all Base Rate Advances and
LIBOR Advances), including, without limitation, any Mandatory Revolver Advance.

        "Affiliate" means any Person that directly or indirectly through one or
more Subsidiaries Controls, or is Controlled By or Under Common Control with,
the Borrower.

        "Affiliation Agreements" means all affiliation agreements of the
Borrower and each Subsidiary with Fox Broadcasting.

        "Agreement" means this Credit Agreement, as amended or renewed from time
to time.

        "Agreement Currency" has the meaning specified in Section 11.14 hereof.

        "AMFM" means AMFM, Inc.

        "AMFM Acquisition" means the acquisition by the Borrower of AMFM and its
direct and indirect subsidiaries in accordance with the terms of the AMFM
Acquisition Documentation.

                                       2
<PAGE>   8
        "AMFM Acquisition Documentation" means that certain Agreement and Plan
of Merger, dated as of October 2, 1999, among the Borrower, AMFM and CCU Merger
Sub, Inc. and all related documentation in effect on May 1, 2000.

        "AMFM Entities" means AMFM and all of its direct and indirect
subsidiaries that are Restricted Subsidiaries at the time of determination.

        "AMFM Reduced Public Debt Permitted Amount" means an amount equal to
$125,000,000.

        "AMFM/SFX Obligor" means AMFM Operating, Inc., Capstar Broadcasting
Partners, Inc. and SFX Entertainment, Inc., provided that, the term AMFM/SFX
Obligor may include any other AMFM Entity or SFX Entity that receives an
Investment from the Borrower or any Restricted Subsidiary (other than another
AMFM Entity or SFX Entity), so long as the Administrative Agent has consented to
such Person as an AMFM/SFX Obligor in writing.

        "Applicable Commitment" means the Revolving Credit Commitment or the
Working Line Commitment, as applicable in the context used.

        "Applicable Commitment Fee Percentage" means the per annum commitment
fees set forth below for the Revolving Credit Loan and the Working Line Loan, as
adjusted in each case according to the circumstances set forth below:

<TABLE>
<CAPTION>
                             Applicable Commitment Fee
                                    Percentages
                            -----------------------------
    Senior Unsecured         Revolving      Working Line
      Debt Ratings          Credit Loan         Loan
                            -----------     -------------
<S>                         <C>             <C>
BB+/Ba1 or lower              0.225%           0.200%
BBB-/Baa3                     0.175%           0.150%
BBB/Baa2                      0.125%           0.100%
BBB+/Baa1 or higher           0.100%           0.090%
</TABLE>

On each date on which there is a change in the Borrower's Senior Unsecured Debt
Rating, the Applicable Commitment Fee Percentage payable by the Borrower shall
be subject to reduction or increase, as applicable and as set forth in the table
above, effective on such date. If the Senior Unsecured Debt Rating has ratings
differing (a) by up to one level, the lowest Applicable Commitment Fee
Percentage will apply and (b) by more than one level, the Applicable Commitment
Fee Percentage for the level immediately below the highest Senior Unsecured Debt
Rating will apply.

        "Applicable Currency" means, as to any particular payment or Advance,
Dollars or the Approved Offshore Currency in which it is denominated or is
payable.

                                       3
<PAGE>   9

        "Applicable Environmental Laws" means applicable federal, state or local
laws, rules and regulations pertaining to health or the environment, including
without limitation, the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986 (as amended from time to time, "CERCLA"), the
Resource Conservation and Recovery Act of 1976, as amended by the Used Oil
Recycling Act of 1980, the Solid Waste Disposal Act amendments of 1980, and the
Hazardous and Solid Waste Amendments of 1984 (as amended from time to time,
"RCRA"), the Texas Water Code, and the Texas Solid Waste Disposal Act.

        "Applicable Law" means (i) in respect of any Person, all provisions of
constitutions, statutes, laws, ordinances, rules, regulations and orders of
governmental bodies, or regulatory agencies applicable to such Person, and all
orders and decrees of all courts and arbitrators in proceedings or actions to
which the Person in question is a party and (ii) in respect of contracts made or
performed in the State of Texas, "Applicable Law" shall also mean the laws of
the United States of America, including, without limiting the foregoing, 12 USC
Sections 85 and 86, as amended to the date hereof and as the same may be amended
at any time and from time to time hereafter, and any other statute of the United
States of America now or at any time hereafter prescribing the maximum rates of
interest on loans and extensions of credit, and the laws of the State of Texas,
including, without limitation, Chapter 303 of the Texas Finance Code, as
amended, and any other statute of the State of Texas now or at any time
hereafter prescribing maximum rates of interest on loans and extensions of
credit, including, without limitation and to the extent available, Chapter 306
of the Texas Finance Code, provided however, that the parties hereto agree
pursuant to Texas Finance Code Section 346.004 that the provisions of Chapter
346 of Texas Finance Code, as amended, shall not apply to this Agreement, the
Advances or any other Loan Papers hereunder.

        "Applicable Lender" has the meaning specified in Section 11.14 hereof.

        "Applicable Margin" means, (a) with respect to LIBOR Advances and
Offshore Advances, 0.750% per annum which may be adjusted based on the below
listed situations, and (b) with respect to Base Rate Advances, 0.000% per annum,
in each case which may be adjusted based on the below listed situations. The
Applicable Margin will be adjusted as set forth in the last paragraph of this
definition to the following per annum percentages set forth in Column B below
applicable in the following situations set forth in Column A below:

<TABLE>
<CAPTION>
          Column A                             Column B
          --------                             --------
                                     Applicable Margin Percentages
                                   ----------------------------------
                                                       LIBOR Advances
      Senior Unsecured             Base Rate            and Offshore
        Debt Rating                Advances               Advances
      ----------------             ---------           --------------
<S>                                 <C>                    <C>
BB+/Ba1 or lower                    0.000%                 0.750%
</TABLE>

                                       4
<PAGE>   10

<TABLE>
<S>                                 <C>                    <C>
BBB-/Baa3                           0.000%                 0.625%
BBB/Baa2                            0.000%                 0.500%
BBB+/Baa1 or higher                 0.000%                 0.400%
</TABLE>

On each date on which there is a change in the Borrower's Senior Unsecured Debt
Rating, the Applicable Margin payable by the Borrower shall be subject to
reduction or increase, as applicable and as set forth in the table above,
effective on such date. If the Senior Unsecured Debt Rating of the Borrower has
ratings differing (i) by up to one level, the highest Senior Unsecured Debt
Rating will apply and (ii) by more than one level, the Applicable Margin for the
level immediately below the highest Senior Unsecured Debt Rating will apply.

        "Applicable Specified Percentage" means with respect to any Lender, in
the case of the Revolving Credit Loan or Revolving Credit Advances, such
Lender's Revolving Credit Specified Percentage, and in the case of the Working
Line Loan or Working Line Advances, such Lender's Working Line Loan Specified
Percentage, as applicable in the context used.

        "Approved Offshore Currency" means (a) with respect to Offshore Advances
and Offshore Bid Rate Advances, the Euro, and the lawful currency of
Switzerland, England and Australia, provided that with respect to Offshore
Advances in the opinion of Determining Lenders of the Revolving Credit Lenders
in their aggregate discretion, such currency is at such time freely traded in
the offshore interbank foreign exchange markets and is freely transferable and
freely convertible into Dollars, (b) with respect to Swingline Advances, the
lawful currency of Mexico, Denmark, Norway, Sweden, Turkey, New Zealand,
Singapore, Taiwan, Thailand and Hong Kong, provided that in the opinion of the
Swingline Bank, in its sole discretion, such currency is at such time freely
traded in the offshore interbank foreign exchange markets and is freely
transferable and freely convertible into Dollars, and (c) with respect to any
Letter of Credit, any lawful currency described in clauses (a) and (b), and, at
the sole discretion of the Primary Issuing Bank, any other lawful currency.

        "Approved Offshore Currency Payment Office" means the addresses of the
Administrative Agent specified on Schedule 1.2 hereto.

        "Approved Offshore Currency Rate" means, for any Offshore Advance,
Offshore Bid Rate Advance or Swingline Advance to be made in an Approved
Offshore Currency for any Interest Period therefor, the interest rate per annum
(rounded upward to the nearest 1/100th of one percent) determined by the
Administrative Agent at approximately 11:00 a.m. (London time), on the date
which is two Business Days before the first day of such Interest Period, as the
offered quotations that appear on Telerate Screen 3740, 3750 and 3751 for
deposits in the applicable Approved Offshore Currency in the applicable
Interbank Market for such Approved Offshore Currency for a length of time
approximately equal to the Interest Period for the Offshore Advance, Offshore
Bid Rate Advance or Swingline Advance sought by the Borrower. If at least two
such offered quotations appear on Telerate Screen 3740, 3750 and 3751, the
Approved Offshore Currency Rate shall be the

                                       5
<PAGE>   11

arithmetic mean (rounded upward to the nearest 1/100th of one percent) of such
offered quotations, as determined by the Administrative Agent. If Telerate
Screen 3740, 3750 and 3751 is not available or has been discontinued, the
Approved Offshore Currency Rate shall be the rate per annum that the
Administrative Agent determines to be the arithmetic mean (rounded as aforesaid)
of the per annum rates of interest at which deposits in the applicable Approved
Offshore Currency in an amount approximately equal to the principal amount of,
and for a length of time approximately equal to the Interest Period for, the
Offshore Advance, Offshore Bid Rate Advance or Swingline Advance sought by the
Borrower are offered to the Administrative Agent in immediately available funds
in the applicable Interbank Market for such Approved Offshore Currency, on the
date which is two Business Days prior to the first day of an Interest Period.

        "Assignment Agreement" has the meaning ascribed thereto in Section 11.6
hereof.

        "Authorized Signatory" means such senior personnel of the Borrower as
may be duly authorized and designated in writing by the Borrower to execute
documents, agreements and instruments on behalf of the Borrower, and to request
Advances and Letters of Credit hereunder.

        "Bank Affiliate" means the holding company of any Lender, or any wholly
owned direct or indirect subsidiary of such holding company or of such Lender.

        "Base Rate Advance" means any Advance bearing interest at the Base Rate
Basis, including, without limitation, any Mandatory Revolver Advance.

        "Base Rate Basis" means, for any day, a per annum interest rate equal to
the lesser of (a) the Highest Lawful Rate on such day, or (b) the Applicable
Margin plus the higher of (i) the sum of (A) 0.50% plus (B) the Federal Funds
Rate on such day or (ii) the Prime Rate on such day. The Base Rate Basis shall
be adjusted automatically as of the opening of business on the effective date of
each change in the Prime Rate or Federal Funds Rate, as the case may be, to
account for such change.

        "Bid Rate Advances" means Bid Rate Advances - Revolving Credit and Bid
Rate Advances Working Line, and "Bid Rate Advance" means any Bid Rate Advance -
Revolving Credit or Bid Rate Advance - Working Line, as applicable under the
circumstances used.

        "Bid Rate Advance Request" means any certificate signed by an Authorized
Signatory requesting Bid Rate Advances hereunder, which certificate shall be
substantially in the form of Exhibit N hereto.

        "Bid Rate Advance - Revolving Credit" means an Advance under the
Revolving Credit Loan in Dollars or Approved Offshore Currencies pursuant to
Section 2.1(a)(iii) hereof, the interest rate on which is determined by
agreement between the Borrower and the Lender making such Advance, which shall
include Offshore Bid Rate Advances made under the Revolving Credit Loan.

        "Bid Rate Advance - Working Line" means an Advance under the Working
Line Loan in Dollars pursuant to Section 2.1(b)(ii) hereof, the Margin on which
is determined by agreement between the Borrower and the Lender making such
Advance.

        "Bid Rate Borrowing - Revolving Credit" - means any bid rate borrowing
under the Revolving Credit Loan, which shall include borrowings for Offshore Bid
Rate Advances made under the Revolving Credit Loan.

                                       6
<PAGE>   12

        "Bid Rate Borrowing - Working Line" - means any bid rate borrowing under
the Working Line Loan.

        "Bid Rate Borrowings" - means Bid Rate Borrowings - Revolving Credit and
Bid Rate Borrowings - Working Line, and "Bid Rate Borrowing" means any Bid Rate
Borrowing - Revolving Credit or Bid Rate Borrowing - Working Line, as applicable
in the context used.

        "Bid Rate Notes" means Bid Rate Notes - Revolving Credit and Bid Rate
Notes - Working Line, and "Bid Rate Note" means any Bid Rate Note - Revolving
Credit or Bid Rate Note - Working Line, as applicable under the circumstances
used.

        "Bid Rate Note - Revolving Credit" means any promissory note of the
Borrower evidencing Bid Rate Advances - Revolving Credit requested by a Lender
in accordance with the terms of Section 2.10(g) hereof, substantially in the
form of Exhibit D hereto, together with any extension, renewal or amendment
thereof or substitution therefor.

        "Bid Rate Note - Working Line" means any promissory note of the Borrower
evidencing Bid Rate Advances - Working Line requested by a Lender in accordance
with the terms of Section 2.10(g) hereof, substantially in the form of Exhibit E
hereto, together with any extension, renewal or amendment thereof or
substitution therefor.

        "Borrower" means Clear Channel Communications, Inc., a Texas
corporation.

        "Borrowing" means either a Revolving Credit Borrowing, any borrowing
that is a Mandatory Revolver Advance, a Swingline Borrowing, an Offshore
Borrowing, a Bid Rate Borrowing or a Working Line Borrowing.

        "Business Day" means any day other than a Saturday, Sunday or other day
on which commercial banks in (a) Dallas, Texas are authorized or required by
Applicable Law to close or (b) New York City are authorized or required by
applicable law to close or, and, if the applicable Business Day relates to:

        (i) a LIBOR Advance, a domestic business day in London, England
(including dealings in United States dollar deposits);

                                       7
<PAGE>   13

        (ii) an Offshore Advance or Offshore Bid Rate Advance denominated in
Dollars, any such day on which dealings are carried on in the applicable
offshore Dollar market;

        (iii) any borrowing for an Offshore Advance or Offshore Bid Rate Advance
in Euros, any such day which is:

               (A) for payments or purchases of the Euro, a TARGET Business Day;
        and

               (B) for all other purposes, including without limitation the
        giving and receiving of notices hereunder, a TARGET Business Day on
        which banks are generally open for business in London, Frankfurt and in
        any other principal financial center as the Administrative Agent may
        from time to time determine for this purpose; and

        (iv) any borrowing for an Offshore Advance, Offshore Bid Rate Advance or
Swingline Advance in an Approved Offshore Currency other than the Euro, a day on
which commercial banks are open for foreign exchange business in London,
England, and on which dealings in the relevant Approved Offshore Currency are
carried on in the applicable offshore foreign exchange interbank market in which
disbursement of or payment in such Approved Offshore Currency will be made or
received hereunder.

        "Calculation Date" means (i) the last Business Day of each fiscal
quarter, (ii) if a Default exists or an Event of Default exists, at the
discretion of the Administrative Agent or the Revolving Credit Lenders, or (iii)
with respect to any determination related to a Letter of Credit, any Business
Day at the discretion of the Primary Issuing Bank.

        "Capital Expenditures" means expenditures for the purchase of tangible
assets of long-term use which are capitalized in accordance with GAAP; provided,
however, Capital Expenditures shall not include assets acquired through trade
without any expenditure of cash, such trade capital expenditures not to exceed
$25,000,000 in aggregate value per year, such valuation to be determined using
the lesser of the fair market value of assets received or the value of air-time
run in exchange for the assets received.

        "Capital Stock" means, as to any Person, the equity interests in such
Person, including, without limitation, the shares of each class of capital stock
of any Person that is a corporation and each class of partnership interests
(including, without limitation, general, limited and preference units) in any
Person that is a partnership.

        "Capitalized Lease Obligations" means that portion of any obligation of
the Borrower or any Restricted Subsidiary as lessee under a lease which at the
time would be required to be capitalized on a balance sheet prepared in
accordance with GAAP.

        "CCC-Houston" means CCC-Houston AM, Ltd., a Texas limited partnership
and a Subsidiary of the Borrower.

                                       8
<PAGE>   14

        "Change in Control" means the occurrence of any of the following: (a)
the sale, lease or transfer of all or substantially all of the Borrower's assets
to any Person or group (as such term is used in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended), or (b) the adoption of a plan
relating to the liquidation or dissolution of the Borrower or (c) (i) the
acquisition by any Person or group (as such term is used in Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended), other than Permitted Holders,
of a direct or indirect majority in interest (more than 50%) of the voting power
of the Capital Stock of the Borrower by way of merger or consolidation or
otherwise except transactions in which more than 50% of the voting power of the
common stock of the transferee are held by the Persons who were holders of the
voting power of such common stock prior to such transfer and (ii) the first day
on which a majority of the members of the board of directors of the Borrower are
not Continuing Directors.

        "Closing Date" means the date of this Agreement.

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

        "Collateral Release Date" means, (a) when applicable to any AMFM Entity
or any Intercompany Notes executed by any AMFM Entity, that date upon which all
public indebtedness of all AMFM Entities in the aggregate is less than or equal
to the AMFM Reduced Public Debt Permitted Amount, and (b) when applicable to any
SFX Entity or any Intercompany Notes executed by any SFX Entity, that date upon
which all public indebtedness of all SFX Entities in the aggregate is less than
or equal to the SFX Reduced Public Debt Permitted Amount.

        "Commitment Fees" means the Revolving Credit Commitment Fee and the
Working Line Commitment Fee.

        "Commitments" means the Revolving Credit Commitment and the Working Line
Commitment, and "Commitment" means either the Revolving Credit Commitment or the
Working Line Commitment, as applicable in the context used.

        "Communications Act" means, collectively, the Communications Act of
1934, as amended by the Telecommunications Act of 1996, and as further amended,
and the rules and regulations promulgated thereunder, as from time to time in
effect.

        "Confirmation of Bid" means any certificate executed by an Authorized
Signatory confirming the terms of its Bid Rate Advance, which certificate shall
be in substantially the form of Exhibit O hereto.

        "Continuing Directors" means, as of any date of determination, any
member of the board of directors of the Borrower who (a) was a member of such
board of directors on the date hereof or (b) was nominated for election or
elected to such board of directors with the affirmative vote of a majority of
the Continuing Directors who were members of such board of directors at the time
of such nomination or election.

                                       9
<PAGE>   15

        "Control" or "Controlled By" or "Under Common Control" means possession,
directly or indirectly, of power to direct or cause the direction of management
or policies (whether through ownership of voting securities, by contract or
otherwise); provided, however, that (a) in the event that no one Person owns
more than 50% of the outstanding Capital Stock of a corporation or entity, any
Person which beneficially owns, directly or, by contract or law, indirectly, 10%
or more (in number of votes) of the securities having ordinary voting power for
the election of directors (or other managing authority) of such corporation or
entity shall be conclusively presumed to control such corporation or entity or
(b) in the event that one Person owns greater than 50% of the outstanding
Capital Stock of a corporation or entity, any Person which beneficially owns,
directly or, by contract or law, indirectly, greater than 20% or more (in number
of votes) of the securities having ordinary voting power for the election of
directors (or other managing authority) of such corporation or entity shall be
conclusively presumed to control such corporation.

        "Controlled Group" means, as to any Person, all members of a controlled
group of corporations and all trades or businesses (whether or not incorporated)
which are under common control with such Person and which, together with such
Person, are treated as a single employer under Section 414(b), (c), (m) or (o)
of the Code; provided, however, that the Subsidiaries of the Borrower shall be
deemed to be members of the Borrower's Controlled Group, and the Borrower and
any other entities (whether incorporated or not incorporated) which are under
common Control with the Borrower and which, together with the Borrower, are
treated as a single employer under Section 414(b), (c), (m) or (o) of the Code,
shall be deemed to be members of the Borrower's Controlled Group on and after
the Closing Date.

        "Conversion Date" means, with respect to the Working Line Loan, the date
upon which (if any) the Working Line Loan converts from a revolving loan to a
term loan, in accordance with the terms of Section 2.17(b) hereof.

        "Conversion Option" means, with respect to the Working Line Loan, the
option that may be exercised by the Borrower on the Option Date or the Extension
Final Maturity in accordance with the terms of Section 2.17(b) hereof, to
convert the Working Line Loan to a Term loan.

        "Debt for Borrowed Money" means, with respect to any Person or Persons
at any date, without duplication, all indebtedness of such Person or Persons
that constitutes (a) all obligations of such Person or Persons for borrowed
money, or in respect of letters of credit (or applications for letters of
credit) or other similar instruments, (b) obligations of such Person or Persons
evidenced by bonds, debentures, notes or other similar instruments, excluding
any surety, bid, appeal or performance bonds, (c) obligations of such Person or
Persons to pay the deferred purchase price of property or services, but only if
such deferral is in excess of 120 days, provided that, trade accounts payable
and other accrued liabilities arising in the ordinary course of business shall
not be considered Debt for Borrowed Money, (d) Capitalized Lease Obligations of
such Person or Persons, (e) installment payment non-compete agreements for such
Person or Persons (f) debt evidenced by Interest Rate Protection Agreements and
(g) Guaranties relating to obligations of another Person (other than the
Borrower or a Restricted Subsidiary of the Borrower with respect to indebtedness
of another Restricted Subsidiary or the Borrower) of the type described in (a)
through (f) above.

                                       10
<PAGE>   16

        "Debtor Relief Law" means any applicable liquidation, conservatorship,
bankruptcy, moratorium, rearrangement, insolvency, reorganization or similar
debtor relief law affecting the rights of creditors generally from time to time
in effect.

        "Default" means an Event of Default and/or any of the events specified
in Section 8.1, regardless of whether there shall have occurred any passage of
time or giving of notice that would be necessary in order to constitute such
event an Event of Default.

        "Default Rate" means a simple per annum interest rate equal to the
lesser of (a) the Highest Lawful Rate, or (b) the sum of the Base Rate Basis
plus two percent.

        "Determining Lenders" means, a group of Lenders on any date of
determination that meet or exceed each of the following requirements: (a) with
respect to the Revolving Credit Lenders, (i) any combination of the Revolving
Credit Lenders having at least 51% of the aggregate amount of the Revolving
Credit Advances and Reimbursement Obligations then outstanding, or (ii) if there
are no Revolving Credit Advances or Reimbursement Obligations outstanding
hereunder, any combination of Revolving Credit Lenders whose Revolving Credit
Specified Percentages aggregate at least 51%, and (b) with respect to the
Working Line Lenders, (i) any combination of the Working Line Lenders having at
least 51% of the aggregate amount of the Working Line Advances then outstanding,
or (ii) if there are no Working Line Advances outstanding hereunder, any
combination of Working Line Lenders whose Working Line Specified Percentages
aggregate at least 51%.

        "Dividend" means, as to any Person, (a) any declaration or payment of
any dividend (other than a dividend paid solely in shares of the common stock of
such Person) on, or the making of any distribution, loan, advance or Investment
to or in any holder of, any shares of Capital Stock of such Person (other than
salaries and bonuses paid in the ordinary course of business), or (b) any
purchase, redemption, or other acquisition or retirement for value of any shares
of Capital Stock of such Person; provided, however, that the acquisition of
shares of Capital Stock of such Person for the purpose of acquiring a Subsidiary
(whether by merger, consolidation, asset acquisition, stock acquisition, or
otherwise) shall not be deemed a Dividend if (a) such shares are used as a
portion or all of the purchase price for the acquisition of a Subsidiary within
a period of ninety days from the date the initial shares of such Capital Stock
were acquired and (b) except with respect to the acquisition of SFX and AMFM,
such Person shall have given the Administrative Agent prior written notice of
its intention to acquire such Capital Stock for the purpose of acquiring a
Subsidiary.

        "Dollar Equivalent" means (a) in relation to any amount denominated in
Dollars, the amount thereof and (b) in relation to an amount denominated in an
Approved Offshore Currency, the amount of such Dollars required to purchase the
relevant stated amount of Approved Offshore Currency at the Exchange Rate on the
date of determination. For the purposes of this Agreement with respect to any
Borrowing, unless otherwise expressly stated herein, the Dollar Equivalent
principal amount of any Advance shall be determined on the date on which the
Notice of Borrowing is received with respect thereto, provided, however, that
the Notice of Borrowing is received by 10 a.m., Dallas, Texas time, at least
four days prior to the requested Borrowing, and shall be recalculated on each

                                       11
<PAGE>   17

Calculation Date and on the date on which a Notice of Continuation/Conversion is
received with respect thereto.

        "Dollar Equivalent Excess" has the meaning specified in Section 2.5(b)
hereof.

        "Dollars" means the lawful currency of the United States of America.

        "Eligible Assignee" means (a) a Lender, (ii) a Bank Affiliate, and (iii)
any other financial institution approved by the Administrative Agent and, unless
an Event of Default has occurred and is continuing at the time any assignment is
effected in accordance with Section 11.6 hereof, the Borrower, such approval not
to be unreasonably withheld or delayed by the Borrower or the Administrative
Agent and such approval to be deemed given by the Borrower if no objection is
received by the assigning Lender and the Administrative Agent from the Borrower
within two Business Days after notice of such proposed assignment has been
provided by the assigning Lender to the Borrower; provided, however, that
neither the Borrower nor any of its Affiliates shall qualify as an Eligible
Assignee.

        "Eller" means Eller Media Corporation, a Delaware corporation, formerly
known as EMC Group, Inc., formerly Eller Media Company.

        "EMU" means Economic and Monetary Union as contemplated in the Treaty.

        "EMU Legislation" means (a) the Treaty and (b) legislative measures of
the European Council for the introduction of, changeover to, or operation of,
the Euro, in each case as amended or supplemented from time to time.

        "Equity" means shares of Capital Stock, or options, warrants or any
other right to subscribe for or otherwise acquire Capital Stock, of the Borrower
or any Subsidiary.

        "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any regulation promulgated thereunder.

        "ERISA Event" means, with respect to the Borrower and its Subsidiaries,
(a) a Reportable Event (other than a Reportable Event not subject to the
provision for 30-day notice to the PBGC under regulations issued under Section
4043 of ERISA), (b) the withdrawal of any such Person or any member of its
Controlled Group from a Plan during a plan year in which it was a "substantial
employer" as defined in Section 4001(a)(2) of ERISA, (c) the filing of a notice
of intent to terminate under Section 4041 of ERISA, (d) the institution of
proceedings to terminate a Plan by the PBGC, (e) the failure to make required
contributions which could result in the imposition of a lien under Section 412
of the Code or Section 302 of ERISA, or (f) any other event or condition which
might reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any Plan
or the imposition of any liability under Title IV of ERISA other than PBGC
premiums due but not delinquent under Section 4007 of ERISA.

                                       12
<PAGE>   18

        "Euro" means the single currency of Participating Member States
introduced in accordance with the provisions of Article 109(l)4 of the Treaty
and, in respect of all payments to be made under this Agreement in euros, means
immediately available, freely transferable funds.

        "Event of Default" means any of the events specified in Section 8.1,
provided that any requirement for notice or lapse of time has been satisfied.

        "Exchange Rate" means with respect to any Approved Offshore Currency on
a particular date, the rate at which such Approved Offshore Currency may be
exchanged into Dollars, as set forth on such date on the Reuters currency page
for exchanges of Dollars into such Approved Offshore Currency. In the event that
such rate does not appear on any Reuters currency page, the Exchange Rate with
respect to such Approved Offshore Currency shall be determined by reference to
such other publicly available service for displaying exchange rates as may be
agreed upon by the Administrative Agent and the Borrower or, in the absence of
such agreement, such Exchange Rate shall instead be the arithmetic mean of the
spot rates of exchange for the Administrative Agent and two other money center
banks in the interbank market where the foreign currency exchange operations of
the Administrative Agent and such two other money center banks in respect of
such Approved Offshore Currency are then being conducted, at or about 10:00 a.m.
local time in the offices of such money center banks, at such date for the
purchase of Dollars with such Approved Offshore Currency, for delivery two
Business Days later; provided, however, that if at the time of any such
determination, for any reason, no such spot rate is being quoted by the
Administrative Agent, the Administrative Agent may use any reasonable method it
deems applicable to determine its respective spot rate, and such determination
shall be prima facie evidence of such rate.

        "Extension Final Maturity" means, with respect to the Working Line Loan,
the earlier of (a) the Maturity Date and (b) that date which is 364 days after
the most recent Option Date on which the Borrower and the Facility Determining
Lenders agreed in writing to an Extension Option.

        "Extension Option" means, with respect to the Working Line Loan, that
option that may be exercised by the Borrower and agreed to by the Facility
Determining Lenders in accordance with the terms of Section 2.17 hereof, to
extend the Working Line Loan an additional 364 day period beyond the most recent
Option Date.

        "Facility Determining Lenders" means, on any date of determination, (a)
with respect to the issues only affecting the Revolving Credit Lenders, (i) any
combination of the Revolving Credit Lenders having at least 51% of the aggregate
amount of the Revolving Credit Advances and Reimbursement Obligations then
outstanding, or (ii) if there are no Revolving Credit Advances or Reimbursement
Obligations outstanding hereunder, any combination of Revolving Credit Lenders
whose Revolving Credit Specified Percentages aggregate at least 51%, and (b)
with respect to the issues only affecting Working Line Lenders, (i) any
combination of the Working Line Lenders having at least 51% of the aggregate
amount of the Working Line Advances then outstanding, or (ii) if there are no
Working Line Advances outstanding hereunder, any combination of Working Line
Lenders whose Working Line Specified Percentages aggregate at least 51%.

                                       13
<PAGE>   19
        "FCC" means the Federal Communications Commission, or any governmental
agency succeeding to the functions thereof.

        "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards if necessary, to the nearest 1/100th of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day, provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day,
and (b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate quoted to the
Administrative Agent on such day on such transactions as determined by
Administrative Agent.

        "Fee Letters" means those certain fee letters executed by the Borrower
and the Administrative Agent or the Borrower and the Syndication Agent, or such
other fee letters among the Borrower and any Lenders from time to time executed
in connection herewith, and all replacements, amendments, substitutions and
additions thereto.

        "GAAP" means generally accepted accounting principles applied on a
consistent basis, set forth in the Opinions of the Accounting Principles Board
of the American Institute of Certified Public Accountants, or their successors
which are applicable in the circumstances as of the date in question. The
requisite that such principles be applied on a consistent basis shall mean that
the accounting principles observed in a current period are comparable in all
material respects to those applied in a preceding period.

        "Guaranty" or "Guaranteed", as applied to an obligation, means and
includes (a) a guaranty, direct or indirect, in any manner, of any part or all
of such obligation, and (b) an agreement, direct or indirect, contingent or
otherwise, the practical effect of which is to assure in any way the payment or
performance (or payment of damages in the event of nonperformance) of any part
or all of such obligation, including, without limiting the foregoing, any
reimbursement obligations with respect to amounts which may be drawn by
beneficiaries of outstanding letters of credit, but excluding endorsement of
checks, drafts and other instruments in the ordinary course of business.

        "Highest Lawful Rate" shall mean at the particular time in question the
maximum rate of interest which, under Applicable Law, any Lender is then
permitted to charge on the Obligations. If the maximum rate of interest which,
under Applicable Law, any Lender is permitted to charge on the Obligations shall
change after the date hereof, the Highest Lawful Rate shall be automatically
increased or decreased, as the case may be, from time to time as of the
effective time of each change in the Highest Lawful Rate without notice to the
Borrower. For purposes of determining the Highest Lawful Rate under Applicable
Law, the indicated rate ceiling shall be the lesser of (a)(i) the "weekly
ceiling", as that expression is defined in Section 303.003 of the Texas Finance
Code, as amended, or (ii) if available in accordance with the terms thereof and
at Administrative Agent's option after notice to the Borrower and otherwise in
accordance with the terms of Section 303.103 of the Texas Finance Code, as
amended, the "annualized ceiling" and (b)(i) if the amount outstanding under
this

                                       14
<PAGE>   20

Agreement is less than $250,000, twenty-four percent (24%) per annum, or (ii) if
the amount under this Agreement is equal to or greater than $250,000,
twenty-eight (28%) per annum.

        "Increased Letter of Credit Costs" has the meaning set forth in Section
2.16(d) hereof.

        "Increased Letter of Credit Costs Retroactive Effective Date" has the
meaning set forth in Section 2.16(d) hereof.

        "Increased Letter of Credit Costs Set Date" has the meaning set forth in
Section 2.16(d) hereof.

        "Indemnified Matters" has the meaning ascribed to it in Section 5.10(a)
hereof.

        "Indemnitees" has the meaning ascribed to it in Section 5.10(a) hereof.

        "Institutional Debt" means Debt for Borrowed Money which may be raised
by the Borrower in the private placement or public debt markets.

        "Intercompany Notes" means those promissory notes payable to the
Borrower or any Restricted Subsidiary from any AMFM/SFX Obligor, in each case
evidencing Investments made by the Borrower or any Restricted Subsidiary in such
AMFM/SFX Obligor, each in the form of Exhibit I hereto.

        "Interest Expense" means, for any period, determined in accordance with
GAAP on a consolidated basis for the Borrower and the Restricted Subsidiaries,
the gross interest expense (after giving effect to interest rate swaps, caps,
collars and hedges) for such period on Total Debt, minus the sum of (a) interest
income for such period, plus (b) to the extent not included in the determination
of such gross interest expense, upfront costs or fees expended during such
period in connection with the execution and delivery of documentation relating
to the Loan Papers, provided that, if any upfront costs and fees have been
previously included in a prior period, such costs and fees shall be deducted in
determining Interest Expense for such period. If during any period for which
Interest Expense is being determined the Borrower or any of its Subsidiaries
shall have made an Acquisition or asset disposition, then, for all purposes of
this Agreement, Interest Expense shall be adjusted for the relevant period on a
pro forma basis as if the relevant Acquisition or asset disposition had been
made or consummated on the first day of such period and assuming (i) in the case
of an Acquisition, the principal amount of any Debt for Borrowed Money incurred
in connection with such Acquisition had been outstanding for the entire duration
of such period at the rate of interest applicable to such Debt for Borrowed
Money at the time of incurrence of such Debt for Borrowed Money or (ii) in the
case of any asset disposition, any Debt for Borrowed Money which on a pro forma
basis has been repaid or which is no longer an obligation of the Borrower or any
of its Subsidiaries as a result of such asset disposition had been repaid or was
not an obligation of the Borrower or any of its Subsidiaries as of the first day
of such period.

                                       15
<PAGE>   21

        "Interest Period" means for (a) any LIBOR Advance, the period beginning
on the day the Advance is made and ending one, two, three, six or, subject to
each Lender's good faith determination of availability, twelve months thereafter
(as the Borrower shall select), provided that, with respect to the LIBOR
Advances under the Working Line Loan, Interest Periods shall never be more than
six months, (b) any Offshore Advance, the period beginning on the day the
Advance is made and ending one, two, or three months thereafter (as the Borrower
shall select), (c) any Bid Rate Advance, the period commencing on the date of
such Advance and ending one, two, three or six months thereafter (as the
Borrower shall select) and (d) any Swingline Advance (i) to be made in Dollars,
the period commencing on the date of such Swingline Advance and ending not less
than 3 calendar days nor more than 90 days thereafter (as the Borrower shall
select) and (ii) to be made in an Approved Offshore Currency, the period
beginning on the day the Advance is made and ending one, two, or three months
thereafter (as the Borrower shall select).

        Notwithstanding the foregoing, if (i) any Interest Period would end on a
day which shall not be a Business Day, such Interest Period shall be extended to
the next succeeding Business Day unless, with respect to LIBOR Advances,
Offshore Advances and Swingline Advances made in Approved Offshore Currencies
only, such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day
and (ii) no Interest Period may be selected for any Borrowing that ends later
than (A) the Maturity Date, for Advances under the Revolving Credit Loan, and
(B) the Option Date or the Extension Final Maturity, as applicable, for Advances
made under the Working Line Loan. Interest shall accrue from and including the
first day of an Interest Period to but excluding the last day of such Interest
Period.

        "Interest Rate Protection Agreement" means an interest rate swap, cap,
collar or similar interest rate protection agreement between the Borrower or any
Restricted Subsidiary of the Borrower and any Lender or any Bank Affiliate.

        "Investment" means any direct or indirect purchase or other acquisition
of, or beneficial interest in, Capital Stock or other securities of any other
Person, or any direct or indirect loan, advance (other than advances to
employees for moving and travel expenses, drawing accounts and similar
expenditures in the ordinary course of business) or capital contribution to, or
investment in any other Person, including without limitation the incurrence or
sufferance of Debt for Borrowed Money or accounts receivable of any other Person
that are not current assets or do not arise in the ordinary course of business,
provided that investments constituting Acquisitions shall not be included in
this definition of "Investment", and such definition shall exclude endorsement
of checks, drafts and other instruments in the ordinary course of business.

        "Invitation to Bid" means any certificate executed by the Administrative
Agent notifying each Lender of the Borrower's Bid Rate Advance Request, which
certificate shall be in substantially the form of Exhibit P hereto.

        "Issuing Banks" means the Primary Issuing Bank and the Secondary Issuing
Banks, and "Issuing Bank" means any of the Primary Issuing Bank or Secondary
Issuing Banks, as applicable in the context used.

                                       16
<PAGE>   22

        "Jacor Bond Debt and Option Notes" means those 10 and 1/8% Senior
Subordinated Notes due 2006, 9 and 3/4% Senior Subordinated notes due 2006, 8
and 3/4% Senior Subordinated notes due 2007 and 8% Senior Subordinated notes due
2010, Liquid Yield Option Notes due 2011 and those Liquid Yield Option Notes due
2018, in each case issued by Jacor Communications Company, Jacor Communications,
Inc. or a predecessor.

        "Judgment Currency" has the meaning specified in Section 11.14 hereof.

        "L/C Cash Collateral Account" has the meaning specified in Section
2.16(g) hereof.

        "L/C Related Documents" has the meaning specified in Section 2.16(e)
hereof.

        "Lender" means each financial institution or fund shown on the signature
pages hereof so long as such financial institution or fund maintains any portion
of any Commitment or is owed any part of the Obligations (including the
Administrative Agent in its individual capacity) or which hereafter becomes a
party hereto pursuant to Section 2.18 hereof, and each Eligible Assignee that
hereafter becomes party hereto pursuant to Section 11.6 hereof.

        "Lending Office" means, with respect to a Lender, the office designated
as its office for LIBOR Advances, its Offshore Lending Office, and its office
for Base Rate Advances, each as described on Schedule 1.2 attached hereto, and
such other office of the Lender or any of its affiliates hereafter designated by
notice to the Borrower and the Administrative Agent.

        "Letter of Credit" has the meaning specified in Section 2.16(a) hereof.

        "Letter of Credit Agreement" has the meaning specified in Section
2.16(b) hereof.

        "Letter of Credit Facility" has the meaning specified in Section 2.16(a)
hereof.

        "Leverage Ratio" means, for any date of determination, the ratio of
Total Debt as of the date of determination to Operating Cash Flow for the four
most recently ended fiscal quarters preceding such date of determination.

        "LIBOR Advance" means any Revolver Advance or Working Advance which the
Borrower requests to be made as a LIBOR Advance or which is reborrowed as a
LIBOR Advance, in accordance with the provisions of Section 2.2 hereof.

        "LIBOR Basis" means a simple per annum interest rate equal to the lesser
of (a) the Highest Lawful Rate, or (b) the sum of the LIBOR Rate plus the
Applicable Margin. The LIBOR Basis shall, with respect to LIBOR Advances with
Interest Periods in excess of six months, be subject to premiums assessed by
each Lender, which are payable directly to each Lender.

                                       17
<PAGE>   23

        "LIBOR Rate" means, for any LIBOR Advance for any Interest Period
therefor, the rate per annum (rounded upwards, if necessary, to the nearest
one-one hundredth (1/100th) of one percent (1%)) appearing on Telerate Page 3750
(or any successor page) as the London interbank offered rate for deposits in
United States dollars at approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period. If for any reason such rate
is not available, the term "LIBOR Rate" shall mean, for any LIBOR Advance for
any Interest Period therefor, the rate per annum (rounded upwards, if necessary,
to the nearest one-one hundredth (1/100th) of one percent (1%)) appearing on
Reuters Screen LIBO page as the London interbank offered rate for deposits in
United States dollars at approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period for a term comparable to
such Interest Period; provided, however, if more than one rate is specified on
Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of
all such rates.

        "Lien" means, with respect to any property, any mortgage, lien, pledge,
collateral assignment, hypothecation, charge, security interest, title retention
agreement, levy, execution, seizure, attachment, garnishment or other
encumbrance of any kind in respect of such property, whether or not choate,
vested or perfected.

        "Like-Kind Exchange" means the disposition by the Borrower or any
Restricted Subsidiary of certain of their assets, and their acquisition of like
assets, in each case in order to effectuate a like-kind exchange under the Code
and avoid the payment by such Person of federal taxes on the proceeds of the
asset sales.

        "Limited Subsidiary Guaranty" means each Limited Subsidiary Guaranty, in
the form of Exhibit F hereto, delivered to the Administrative Agent and
guaranteeing a portion of the Obligations in a maximum aggregate amount for all
such Limited Subsidiary Guaranties not to exceed the Limited Subsidiary Guaranty
Amount, executed from time to time by an AMFM/SFX Obligor, in accordance with
the terms of Section 5.14 hereof.

        "Limited Subsidiary Guaranty Amount" means, on any date of determination
after the Acquisition of AMFM or SFX, respectively, and in each case until their
respective Collateral Release Date, an amount equal to the lesser of (a) the
excess, if any, of (i) the aggregate principal amount (which such amount shall
include accretion) of all outstanding and unpaid public and/or high yield
indebtedness owed by all AMFM Entities or all SFX Entities, as applicable, over
(ii) the principal face amount of all Pledged Intercompany Notes of the AMFM/SFX
Obligors, as applicable and (b) the excess, if any, of (i) the aggregate amount
of all Investments made in all AMFM/SFX Obligors by the Borrower and its
Restricted Subsidiaries(other than AMFM Entities and SFX Entities) for the
period from the Closing Date until such date of determination, over (ii) the
aggregate principal amount owing under all Pledged Intercompany Notes as of such
date, provided that the Limited Subsidiary Guaranty Amount shall never be less
than $1,000,000,000 and shall never be more than the greatest amount that would
still permit the issuer under each of the AMFM Entity and SFX Entity indentures
for public indebtedness to incur $1.00 of additional indebtedness (other than
indebtedness specifically permitted thereunder) after giving effect to the
aggregate principal amount then outstanding of all Intercompany Notes executed
by such AMFM Entity or SFX Entity, as

                                       18
<PAGE>   24
applicable, and all other indebtedness then outstanding which was permitted to
be incurred under such indentures prior to the date of the SFX Acquisition or
AMFM Acquisition and this Agreement, as applicable.

        "Loan Papers" means this Agreement, the Revolving Credit Notes (if any),
the Bid Rate Notes (if any), the Swingline Notes (if any), the Working Line
Notes (if any), each Limited Subsidiary Guaranty, each pledge agreement pledging
a Pledged Intercompany Note, the Fee Letters, each Interest Rate Protection
Agreement, and any other document or agreement executed or delivered from time
to time by the Borrower, any Subsidiary or any other Person in connection
herewith or as security for the Obligations, with, or on behalf of, any Lender
or any Bank Affiliate.

        "Loans" means the Revolving Credit Loan and the Working Line Loan, and
"Loan" means either of the Revolving Credit Loan or the Working Line Loan, as
applicable in the context used.

        "Local Marketing Agreement" means any time brokerage agreements, local
market affiliation agreements or related or similar agreements entered into
between the Borrower or any Subsidiary and any other Person, as any of the above
may be amended, substituted, replaced or modified.

        "Mandatory Revolver Advance" means a Revolver Advance made (a) to repay
either (i) an Offshore Advance pursuant to Section 2.2(e)(ii) hereof or (ii) a
Swingline Advance pursuant to Section 2.2(h) hereof, as appropriate, (b)
pursuant to Section 2.3(f) hereof, or (c) pursuant to Section 9.7 hereof.

        "Margin" means, as to any Bid Rate Advance that is (a) an Offshore Bid
Rate Advance, the margin (expressed as a percentage rate per annum in the form
of a decimal to no more than four decimal places) quoted by any Lender offering
a Bid Rate Advance that is an Offshore Bid Rate Advance, pursuant to Section
2.2(i)(iii) hereof to be added or subtracted from the Approved Offshore Currency
Rate or the Offshore Dollar Rate, as the case may be, to determine the interest
rate applicable to such Advance or (b) a domestic Advance made in Dollars, the
margin (expressed as a percentage rate per annum in the form of a decimal to no
more than four decimal places) quoted by any Lender offering a Bid Rate Advance
that is a domestic Advance made in Dollars, pursuant to Section 2.2(i)(iii)
hereof to be added or subtracted from the LIBOR Rate, as the case may be, to
determine the interest rate applicable to such Advance.

        "Material Adverse Effect" means any act or circumstance or event that
(a) causes a Default, or (b) otherwise could reasonably be expected to be
material and adverse to the business, consolidated assets, liabilities,
financial condition or results of operations of the Borrower and its Restricted
Subsidiaries, together taken as a whole.

        "Material Subsidiaries" means, for purposes of Article 3, the Borrower,
Clear Channel Broadcasting (Nevada), Clear Channel Broadcasting Licensing
(Nevada), Eller Media, Jacor Communications Company, AMFM, Inc, Capstar
Broadcasting Partners, L.P., AMFM Operating, Inc., Katz Media Corp., SFX, More
Group PLC, and Dauphin (OTA).

                                       19
<PAGE>   25

        "Maturity Date" means August 30, 2005.

        "Maximum Amount" means the maximum amount of interest which, under
Applicable Law, the Lenders are permitted to charge on the Obligations.

        "Maximum Pledged Intercompany Note Amount" means an amount (on any date
of determination, but adjusted quarterly as set forth below) equal to the lesser
of (a) the aggregate principal amount (which such amount shall include
accretion) of all outstanding and unpaid public and/or high yield indebtedness
owed by all AMFM Entities and all SFX Entities, and (b) 14.5% of the Borrower's
Consolidated Stockholders' Equity as reflected in the most recent audited
balance sheet included in the Annual Shareholders' report of the Borrower,
determined and changed as follows: Subsection (a) in this definition of Maximum
Pledged Intercompany Note Amount will be determined and adjusted quarterly based
on financial information delivered to the Administrative Agent and Lenders in
accordance with the terms of Section 6.1 hereof, and subsection (b) in this
definition of Maximum Pledged Intercompany Note Amount will be determined and
adjusted annually based on financial information delivered to the Administrative
Agent and Lenders in accordance with the terms of Section 6.2 hereof.

        "Moody's" means Moody's Investors Services, Inc.

        "More Group" means the More Group Plc, a company incorporated in England
(number 309019) of 33 Golden Square, London, W1R 3PA.

        "More Group Credit Facility" means that certain unsecured multi-currency
credit facility among Barclays Bank Plc, Bank of Scotland, A1B Group Plc,
Svenska Handelsbank AB, Skandinaviska Engkilda Banken AB, The Chase Manhattan
Bank (as Lenders, as such Lenders may be replaced from time to time) and More
Group, as parent, borrower and guarantor, as such may be amended, modified,
supplemented, refinanced or replaced from time to time, provided that after the
Closing Date (a) no such action shall result in any term being materially more
restrictive than the terms of the More Group Credit Facility documentation
existing on the date hereof taken as a whole, and (b) no such action shall
result in any change that is both material and adverse to the interests of the
Lenders.

        "Multiemployer Plan" means, as to any Person, at any time, a
"multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA and to
which such Person or any member of its Controlled Group is making, or is
obligated to make contributions or has made, or been obligated to make,
contributions.

        "Necessary Authorization" means any license, permit, consent, approval
or authorization from, or any filing or registration with, any governmental or
other regulatory authority (including without limitation the FCC) necessary or
appropriate to enable the Borrower or any Subsidiary to maintain and operate its
business and properties.

        "Net Cash Proceeds" means, with respect to any sale, lease, transfer or
disposition of any asset by any Person or the issuance of Institutional Debt or
Equity by any Person (other than the net

                                       20
<PAGE>   26

cash proceeds from the consolidation of any Restricted Subsidiary with another
Restricted Subsidiary), the aggregate amount of cash Received by such Person in
connection with such transaction minus reasonable fees, costs and expenses and
related taxes.

        "Notice of Acceptance of Bid" means any certificate signed by an
Authorized Signatory of the Borrower accepting Bid Rate Advances, which
certificate shall be in substantially the form of Exhibit Q hereto.

        "Notice of Borrowing" has the meaning ascribed to it in Section 2.2(a)
hereof.

        "Notice of Change of Senior Unsecured Debt Rating" means that certain
Notice of Change in the Senior Unsecured Debt Rating in the form of Exhibit K
hereto.

        "Notice of Continuation/Conversion" has the meaning specified in Section
2.2(e)(i) hereof.

        "Notice of Issuance" has the meaning ascribed to it in Section 2.16(b)
hereof.

        "Notes" means, to the extent requested by any Lender in accordance with
the terms of Section 2.10(g) hereof, the Revolving Credit Notes, Swingline
Notes, Bid Rate Notes and Working Line Notes and "Note" means any of the
Revolving Credit Notes, Swingline Notes, Bid Rate Notes or Working Line Notes.

        "NRNZ" means NRNZ Holdings, Limited, a New Zealand corporation of which
33 1/3% of the outstanding Capital Stock is owned by the Borrower.

        "Obligations" means (a) all obligations of any nature (whether matured
or unmatured, fixed or contingent, including the Reimbursement Obligations) of
the Borrower or any Subsidiary to the Lenders or Bank Affiliates under the Loan
Papers, as they may be amended from time to time, and (b) all obligations of the
Borrower or any Subsidiary for losses, damages, expenses or any other
liabilities of any kind that any Lender or Bank Affiliate may suffer by reason
of a breach by the Borrower or any Subsidiary of any obligation, covenant or
undertaking with respect to any Loan Paper.

        "Offshore Advance" means any advance under the Revolving Credit Loan
made (a) in an Approved Offshore Currency, or (b) as an Offshore Advance in
Dollars, in accordance with the terms of Section 2.1(a)(i) hereof.

        "Offshore Basis" means a simple per annum interest rate equal to the
lesser of (a) the Highest Lawful Rate, and (b) the sum of (i) the Offshore
Dollar Rate or Approved Offshore Currency Rate, as applicable, plus (ii) the
Applicable Margin.

        "Offshore Bid Rate" means a rate per annum equal to (a) the Offshore
Dollar Rate or Approved Offshore Currency Rate, as the case may be, plus or
minus (b) the Margin.

                                       21
<PAGE>   27

        "Offshore Bid Rate Advance" means any Bid Rate Advance - Revolving
Credit subject to an Offshore Bid Rate.

        "Offshore Borrowing" means a borrowing made hereunder consisting of
Offshore Advances or Offshore Bid Rate Advances.

        "Offshore Commitment" means, on any date of determination, the lesser of
(a) the Dollar Equivalent of $1,000,000,000 and (b) the Revolving Credit
Commitment minus the sum of (i) the Dollar Equivalent of all outstanding
Revolving Credit Advances plus (ii) the sum of all outstanding Reimbursement
Obligations.

        "Offshore Dollar Rate" means, for any Offshore Advance to be made in
Dollars for any Interest Period therefor, the rate per annum (rounded upwards,
if necessary, to the nearest one-one hundredth (1/100th) of one percent (1%))
appearing on Telerate Page 3750 (or any successor page) as the London interbank
offered rate for deposits in United States dollars at approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period.
If for any reason such rate is not available, the term "Offshore Dollar Rate"
shall mean, for any Offshore Advance to be made in Dollars for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the
nearest one-one hundredth (1/100th) of one percent (1%)) appearing on Reuters
Screen LIBO page as the London interbank offered rate for deposits in United
States dollars at approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period for a term comparable to such Interest
Period; provided, however, if more than one rate is specified on Reuters Screen
LIBO Page, the applicable rate shall be the arithmetic mean of all such rates.

        "Offshore Lending Office" means, with respect to a Lender, the office
described on Schedule 1.2 hereto and designated as its Offshore Lending Office
for Offshore Advances, certain Swingline Advances (if applicable) and certain
Bid Rate Advances (if applicable), and such other office of the Lender or any of
its affiliates hereafter designated by notice to the Borrower and the
Administrative Agent.

        "Operating Cash Flow" means, for any period, determined in accordance
with GAAP on a consolidated basis for the Borrower and its Restricted
Subsidiaries, the sum of (a) pre-tax net income (excluding therefrom (i) any
items of extraordinary gain, including net gains on the sale of assets other
than asset sales in the ordinary course of business, and (ii) any items of
extraordinary loss, including net losses on the sale of assets other than asset
sales in the ordinary course of business), plus (b) interest expense,
depreciation and amortization (including amortization of film contracts),
deferred and other non-cash charges, and minus (c) cash payments made or
scheduled to be made with respect to film contracts. Operating Cash Flow shall
be adjusted to exclude (i) any extraordinary non-cash items deducted from or
included in the calculation of pre-tax net income and (ii) without duplication,
any accrued but not paid income or loss from Investments. For purpose of
calculation of Operating Cash Flow with respect to assets not owned at all times
during the four fiscal quarters preceding the date of determination of Operating
Cash Flow there shall be (i) included in Operating Cash Flow on a pro forma
basis, the Operating Cash Flow of any assets acquired during

                                       22
<PAGE>   28

any of such four fiscal quarters for the twelve month period preceding the date
of determination, and (ii) excluded from Operating Cash Flow on a pro forma
basis, the Operating Cash Flow of any assets disposed of during any of such four
fiscal quarters for the twelve month period preceding the date of determination.

        "Operating Lease" means any operating lease, as defined in the Financial
Accounting Standard Board Statement of Financial Accounting Standards No. 13,
dated November, 1976 or otherwise in accordance with GAAP, with an initial or
remaining noncancellable lease term in excess of one year.

        "Option Date" means, with respect to the Working Line Loan (a) for the
364 day period after the Closing Date, August 29, 2001, (b) for the 364 day
period after August 29, 2001, August 28, 2002, (c) for the 364 day period after
August 28, 2002, August 27, 2003 and (d) for the 364 day period after August 27,
2003, August 25, 2004.

        "Original Credit Facility" means that certain credit facility pursuant
to the terms of the Original Credit Facility Documentation.

        "Original Credit Facility Documentation" means that certain Fourth
Amended and Restated Credit Agreement, dated as of June 15, 2000, among the
Borrower, Bank of America, N.A., as administrative agent, Fleet National Bank
(formerly The First National Bank of Boston), as documentation agent, Bank of
Montreal, as co-syndication agent, Toronto Dominion (Texas), Inc., as
co-syndication agent, and the lenders described therein, with Banc of America
Securities LLC, as arranger, and the "Loan Papers" as defined therein, as such
agreement and the loan papers may be amended, increased, restated, replaced or
substituted from time to time.

        "Participating Lender" has the meaning specified in Section 2.18 hereof.

        "Participating Member State" means each country which from time to time
becomes a Participating Member State as described in EMU Legislation.

        "Participation" has the meaning ascribed to it in Section 11.6(c)
hereof.

        "Payment Date" means the last day of the Interest Period for any LIBOR
Advance, Offshore Advance, Swingline Advance or Bid Rate Advance.

        "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

        "Permitted Holders" means L. Lowry Mays, Mark P. Mays, Randall T. Mays
and any person related to any of them by kinship or marriage, trusts or similar
arrangements established solely on the behalf of one or more of them, and
partnerships and other entities that are controlled by them.

        "Permitted Liens" means, as applied to any Person:

                                       23
<PAGE>   29

        (a) any Lien in favor of the Administrative Agent on behalf of the
Lenders to secure the Obligations hereunder;

        (b) (i) Liens for taxes not yet delinquent, (ii) Liens created by lease
agreements to secure the payments of rental amounts and other sums not yet due
thereunder, (iii) Liens on leasehold interests created by the lessor in favor of
any mortgagee of the leased premises, and (iv) Liens for taxes, assessments,
governmental charges, levies or claims that are being diligently contested in
good faith by appropriate proceedings and for which adequate reserves shall have
been set aside on such Person's books, but only so long as no foreclosure,
restraint, sale or similar proceedings have been commenced with respect thereto;

        (c) Liens of carriers, warehousemen, mechanics, laborers and materialmen
and other similar Liens incurred in the ordinary course of business for sums not
yet due or being contested in good faith, if such reserve or appropriate
provision, if any, as shall be required by GAAP shall have been made therefor;

        (d) Liens incurred in the ordinary course of business in connection with
worker's compensation, unemployment insurance or similar legislation;

        (e) Easements, right-of-way and zoning restrictions and other similar
encumbrances on the use of real property which do not interfere with the
ordinary conduct of the business of such Person;

        (f) Liens created to secure the purchase price of property acquired by
(i) any Restricted Subsidiary, or created to secure Debt for Borrowed Money of
the Restricted Subsidiaries permitted by Section 7.1(b) hereof in an amount not
to exceed $50,000,000 in the aggregate outstanding at any time for all
Restricted Subsidiaries and (ii) the Borrower, or created to secure Debt for
Borrowed Money of the Borrower permitted by the first sentence of Section 7.1
hereof in an amount not to exceed $50,000,000 in the aggregate outstanding at
any time, which, in the case of both (i) and (ii) foregoing, is incurred solely
for the purpose of financing the acquisition of such assets and incurred at the
time of acquisition, so long as (A) each such Lien shall at all times be
confined solely to the asset or assets so acquired (and proceeds thereof and
improvements and accessions thereto), and refinancings thereof, and (B) the
amount of Debt for Borrowed Money related thereto is not increased (except for
prepayment fees and expenses of such refinancing);

        (g) Liens in respect of judgments or awards for which appeals or
proceedings for review are being prosecuted and in respect of which a stay of
execution upon any such appeal or proceeding for review shall have been secured,
provided that (i) such Person shall have established adequate reserves for such
judgments or awards, (ii) such judgments or awards shall be fully insured and
the insurer shall not have denied coverage, or (iii) such judgments or awards
shall have been bonded to the satisfaction of the Determining Lenders;

                                       24
<PAGE>   30

        (h) Any Liens existing on the Closing Date which are described on
Schedule 1.3 hereto or permitted to exist under the terms of Section 7.2 hereof,
and Liens resulting from the refinancing of the related Debt for Borrowed Money,
provided that the Debt for Borrowed Money secured thereby shall not be increased
and the Liens shall not cover additional assets (except improvements and
accessions thereto) of the Borrower or any of its Restricted Subsidiaries; and

        (i) Liens securing acquired Debt for Borrowed Money permitted to exist
under Section 7.1(e) hereof, but only to the extent that such Liens and Debt for
Borrowed Money existed prior to the date of the related Acquisition (such Liens
shall not cover additional assets, except improvements and accessions thereto),
and provided that such Lien and such Debt for Borrowed Money were not incurred
in anticipation of the consummation of such Acquisition.

        "Person" means an individual, corporation, partnership, trust or
unincorporated organization, limited liability company, or a government or any
agency or political subdivision thereof.

        "Plan" means an employee pension benefit plan as defined in Section 3(2)
of ERISA (including a Multiemployer Plan) that is covered by Title IV of ERISA
or subject to the minimum funding standards under Section 412 of the Code and is
maintained for the employees of the Borrower, its Subsidiaries or any member of
their Controlled Group.

        "Pledged Intercompany Notes" means Intercompany Notes pledged to the
Administrative Agent on behalf of the Lenders to secure the Obligations in
accordance with the terms of Section 5.14 hereof, pursuant to documentation
substantially in the form of Exhibit J hereto.

        "Primary Issuing Bank" means Bank of America, N.A., in its capacity as
issuer of the Primary Letters of Credit.

        "Primary Letters of Credit" has the meaning specified in Section 2.16(a)
hereof.

        "Prime Rate" means, at any time, the prime interest rate announced or
published by the Administrative Agent from time to time as its reference rate
for the determination of interest rates for loans of varying maturities in
United States dollars to United States residents of varying degrees of
creditworthiness and being quoted at such time by the Administrative Agent as
its "prime rate;" it being understood that such rate may not be the lowest rate
of interest charged by the Administrative Agent.

        "Quarterly Date" means March 31, June 30, September 30 and December 31,
beginning September 30, 2000.

        "Received" means on any date of determination for any Person with
respect to any sale or disposition, the actual cash amount in the possession of,
under the control of, and at the disposal of, such Person from such sale or
disposition, provided that, so long as there exists no Default, proceeds from
any sale or disposition held in escrow by any "qualified intermediary" as
defined in the Code for a period not in excess of 180 days, for the purpose of
consummating a Like-Kind Exchange,

                                       25
<PAGE>   31

which such proceeds are subsequently reinvested in like assets during the 180
day period in accordance with the Code, shall not be deemed to be Received by
such Person unless (or until such time as) such proceeds are not held or
reinvested in accordance with the Code in order to effectuate a Like-Kind
Exchange.

        "Refinancing Advance" means any Advance which is used to pay the
principal amount (or any portion thereof) of a LIBOR Advance, Offshore Advance
or Bid Rate Advance at the end of its Interest Period and which, after giving
effect to such application, does not result in an increase in the aggregate
amount of outstanding LIBOR Advances, Base Rate Advances, Offshore Advances, or
Bid Rate Advances at the time of the Refinancing Advance.

        "Regulatory Modification" has the meaning set forth in Section 9.8
hereof.

        "Regulatory Modification Retroactive Effective Date" has the meaning set
forth in Section 9.8 hereof.

        "Regulatory Modification Set Date" has the meaning set forth in Section
9.8 hereof.

        "Reimbursement Obligations" means, in respect of any Letters of Credit
as at any date of determination, the Dollar Equivalent of the maximum aggregate
amount which is then available to be drawn under such Letter of Credit (whether
or not the conditions to drawing thereunder have been met) plus any unreimbursed
amounts under Letters of Credit.

        "Release Date" means the date on which the notes have been paid, all
other Obligations due and owing have been paid and performed in full, and all of
the Commitments have been terminated.

        "Reportable Event" has the meaning set forth in Title IV of ERISA.

        "Reset Date" means the first Business Day following the relevant
Calculation Date.

        "Restricted Subsidiary" means any Subsidiary of Borrower which is not an
Unrestricted Subsidiary, including, without limitation, ARN and NRNZ, provided
that, upon the acquisition by the Borrower of the AMFM Entities and the SFX
Entities, such Persons shall not be "Restricted Subsidiaries" under the terms of
this document until, in each case, one Business Day has elapsed after their
respective acquisitions by the Borrower, at which time each of the AMFM Entities
and each of the SFX Entities, respectively, shall each be included as a
"Restricted Subsidiary" under this Agreement and the Loan Papers.

        "Revolver Advance" means an Advance in Dollars under the Revolving
Credit Loan made by (a) the Lenders in accordance with the terms of Section
2.1(a)(i) hereof or (b) any Issuing Bank in accordance with the terms of Section
2.16(c) hereof, and shall include all Mandatory Revolver Advances.

                                       26
<PAGE>   32

        "Revolving Credit Advances" means all Advances made under the Revolving
Credit Loan, including (without limitation) all Revolver Advances, Swingline
Advances, Offshore Advances and Bid Rate Advances - Revolving Credit, and
"Revolving Credit Advance" means any Advance made under the Revolving Credit
Loan, which such Advance may be (without limitation) a Revolver Advance,
Swingline Advance, an Offshore Advance or a Bid Rate Advance - Revolving Credit,
as applicable in the context used.

        "Revolving Credit Borrowing" means a borrowing made hereunder consisting
of Revolver Advances and/or Offshore Advances, including without limitation, any
borrowing that is Mandatory Revolver Advance.

        "Revolving Credit Commitment" means, on any date of determination,
$1,500,000,000, plus any increase to such amount effected by the Borrower from
time to time in accordance with the terms of Section 2.18 hereof, and minus any
reduction of such amount effected by the Borrower from time to time in
accordance with the terms of Section 2.6 hereof.

        "Revolving Credit Commitment Fee" has the meaning ascribed thereto in
Section 2.4(a)(i) hereof.

        "Revolving Credit Lenders" means, on any date of determination, those
Lenders having Revolving Credit Specified Percentages in excess of zero.

        "Revolving Credit Loan" means the loan made in accordance with the
provisions of Section 2.1 hereof.

        "Revolving Credit Note" means any promissory note of the Borrower
evidencing Revolver Advances and Offshore Advances under the Revolving Credit
Loan hereunder requested by a Lender in accordance with the terms of Section
2.10(g) hereof, substantially in the form of Exhibit A hereto, together with any
extension, renewal or amendment thereof or substitution therefor.

        "Revolving Credit Specified Percentage" means, as to any Lender, the
percentage indicated beside its name on the signature pages hereof designated as
its Revolving Credit Specified Percentage, or as adjusted or specified (i) in
any Assignment and Acceptance, (ii) in any amendment to this Agreement, or (iii)
in connection with any increase in the Revolving Credit Commitment affected in
accordance with Section 2.18 hereof.

        "Secondary Issuing Banks" means The Bank of New York, in its capacity as
issuer of certain of the Acquired Letters of Credit and Bankers Trust Company,
in its capacity as issuer of certain of the Acquired Letters of Credit, and
"Secondary Issuing Bank" means either of The Bank of New York, in its capacity
as issuer of certain of the Acquired Letters of Credit, or Bankers Trust
Company, in its capacity as issuer of certain of the Acquired Letters of Credit,
as applicable in the context used.

                                       27
<PAGE>   33

        "Senior Unsecured Debt Rating" means the Borrower's senior unsecured
debt rating as announced by S&P or Moody's.

        "S&P" means Standard & Poor's Ratings Group, a division of The
McGraw-Hill Companies, Inc., a New York corporation.

        "SFX" means SFX Entertainment, Inc.

        "SFX Acquisition" means the acquisition by the Borrower of SFX and its
direct and indirect subsidiaries in accordance with the terms of the SFX
Acquisition Documentation.

        "SFX Acquisition Documentation" means that certain Agreement and Plan of
Merger, dated as of February 28, 2000, among the Borrower, SFX and CCU II Merger
Sub, Inc., and all related documentation in effect on May 1, 2000.

        "SFX Entities" means SFX and all of its direct and indirect subsidiaries
that are Restricted Subsidiaries at the time of determination.

        "SFX Reduced Public Debt Permitted Amount" means an amount equal to
$25,000,000.

        "Solvent", when used with respect to any Person, means that, as of any
date of determination, (a) the amount of the "present fair saleable value" of
the assets of such Person and its subsidiaries, taken as a whole, will, as of
such date, exceed the amount that will be required to pay all "liabilities of
such Person and its Subsidiaries, taken as a whole, contingent or otherwise", as
of such date (as such quoted terms are determined in accordance with applicable
Debtor Relief Laws as such debts become absolute and matured, (b) such Person
and its Subsidiaries, taken as a whole, will not have, as of such date, an
unreasonably small amount of capital with which to conduct their businesses,
taking into account the particular capital requirements of such Person and its
projected capital requirements and availability and (c) such Person and its
Subsidiaries, taken as a whole, will be able to pay their debts as they mature,
taking into account the timing of and amounts of cash to be received by such
Person and its Subsidiaries, taken as a whole, and the timing of and amounts of
cash to be payable on or in respect of indebtedness of such Person and its
Subsidiaries, taken as a whole. For purposes of this definition, (i) "debt"
means liability on a "claim", and (ii) "claim" means any (x) right to payment,
whether or not such a right is reduced to judgment, liquidated, unliquidated,
fixed, contingent, matured, unmatured, disputed, undisputed, real or equitable,
secured or unsecured or (y) right to an equitable remedy for breach of
performance if such breach gives rise to a right of payment, whether or not such
right to an equitable remedy is reduced to judgment, fixed, contingent, matured
or unmatured, disputed, undisputed, secured or unsecured.

        "Special Counsel" means the law firm of Donohoe, Jameson & Carroll,
P.C., or such other legal counsel as the Administrative Agent may select.

        "Subsidiary" means (a) any corporation of which 50% or more of the
outstanding stock (other than directors' qualifying shares) having ordinary
voting power to elect a majority of its board

                                       28
<PAGE>   34

of directors, regardless of the existence at the time of a right of the holders
of any class of securities of such corporation to exercise such voting power by
reason of the happening of any contingency, is at the time owned by the
Borrower, directly or through one or more intermediaries, and (b) any other
entity which is Controlled or then capable of being Controlled by the Borrower,
directly or through one or more intermediaries, whether a Restricted Subsidiary
or Unrestricted Subsidiary.

        "Swingline Advance" means an Advance made by the Swingline Bank under
the Swingline Loan.

        "Swingline Bank" means Bank of America, N.A. and any successor thereto
appointed in accordance with Section 10.1(b) hereof.

        "Swingline Borrowing" means a borrowing made hereunder consisting of
Swingline Advances.

        "Swingline Commitment" means, on any date of determination,
$150,000,000.

        "Swingline Loan" means that certain swingline facility available to the
Borrower in accordance with the terms of Section 2.1(a)(ii) hereof.

        "Swingline Note" means any Swingline Note of the Borrower payable to the
order of the Swingline Bank requested by a Lender in accordance with the terms
of Section 2.10(g) hereof, evidencing Swingline Advances hereunder,
substantially in the form of Exhibit B hereto, together with any extension,
renewal or amendment thereof or substitution therefor.

        "Syndication Agent" means Chase Securities Inc.

        "TARGET Business Day" means a day when TARGET (Trans-European Automated
Real- time Gross settlement Express Transfer system), or any successor thereto,
is scheduled to be open for business.

        "Termination Event" means, with respect to the Borrower, any of its
Subsidiaries or any Plan, (a) a Reportable Event, (b) the withdrawal from a Plan
during a Plan year in which it was a "substantial employer" as defined in
Section 4001(a)(2) of ERISA, (c) the filing of a notice of intent to terminate a
Plan or the treatment of a Plan amendment as a termination under Section 4041 of
ERISA, (d) the institution of proceedings by the Pension Benefit Guaranty
Corporation to terminate a Plan or appoint a trustee to administer a Plan, (e)
the failure to comply with the minimum funding requirements of ERISA with
respect to any Plan, or (f) any other event or condition which might constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan.

        "Term Loan" has the meaning ascribed thereto in Section 2.17(b) hereof.

                                       29
<PAGE>   35

        "Total Debt" means, as of any date of determination, determined for the
Borrower and its Restricted Subsidiaries on a consolidated basis, the sum
(without duplication) of (a) all principal and interest owing under the Loan
Papers and (b) all other Debt for Borrowed Money.

        "Total Specified Percentage" means, as to any Lender on any date of
determination, the percentage that such Lender's maximum Dollar (or Dollar
Equivalent) commitment to lend under the aggregate Loans on such date, bears to
the sum of the Revolving Credit Commitment plus the Working Line Commitment. If
all or any portion of the Commitments have been terminated or expired, Total
Specified Percentage shall be determined based upon the Commitments most
recently in effect, giving effect to any assignments.

        "Treaty" means the Treaty establishing the European Economic Community,
being the Treaty of Rome of March 25, 1957 as amended by the single European Act
1986 and the Maastricht Treaty (which was signed on February 7, 1992 and came
into force on November 1, 1993) as amended, varied or supplemented from time to
time.

        "Universal $325 Million 9.75% Bonds" means those certain $325 million in
9.75% bonds of Universal Outdoor Holdings, Inc. maturing October 15, 2006.

        "Unrestricted Subsidiary" means those Subsidiaries designated as
Unrestricted Subsidiaries on Schedule 4.1(a) hereto, any entity acquired as an
Acquisition after the Closing Date unless such Investment is designated as a
Restricted Subsidiary by Borrower prior to the completion of such Acquisition,
or by complying with the terms and provisions of Section 5.12(a) hereof. An
Unrestricted Subsidiary may become a Restricted Subsidiary and subject to the
provisions hereof by Borrower's designation thereof in accordance with the terms
and provisions of Section 5.12(b), as applicable.

        "Weighted Average Life to Maturity" means, as of the date of
determination, with respect to any debt instrument, the quotient obtained by
dividing (i) the sum of the products of the number of years from the date of
determination to the dates of each successive scheduled principal payment of
such debt instrument by the amount of such principal payment by (ii) the sum of
all such principal payments.

        "Working Advance" means an Advance in Dollars made by Lenders under the
Working Line Loan.

        "Working Line Advance" means any advance made under the Working Line
Loan, including without limitation, Working Advances and Bid Rate Advances -
Working Line.

        "Working Line Borrowing" means a borrowing made hereunder consisting of
Working Advances.

        "Working Line Commitment" means, with respect to the Working Line Loan
prior to the Conversion Date, $1,500,000,000, as reduced from time to time
pursuant to Section 2.6 and

                                       30
<PAGE>   36

Section 2.17 hereof, provided that, (a) on any Option Date, if the Borrower and
the Facility Determining Lenders have not agreed to an Extension Option or the
Borrower has not exercised its Conversion Option in each case in accordance with
the terms of Section 2.17 hereof, the Working Line Commitment shall mean $0.00,
(b) on and after the Extension Final Maturity, the Working Line Commitment shall
mean $0.00, and (c) on and after the Conversion Date, the Working Line
Commitment shall mean $0.00.

        "Working Line Commitment Fee" has the meaning ascribed thereto in
Section 2.4(a)(ii) hereof.

        "Working Line Lenders" means, on any date of determination, those
Lenders having Working Line Specified Percentages in excess of zero.

        "Working Line Loan" means the revolving 364 day short term revolving
loan made by the Lenders pursuant to Section 2.1(b) of this Agreement (which
such definition shall include the Term Loan, if the Borrower exercises the
Conversion Option).

        "Working Line Note" means any Note of the Borrower evidencing Working
Advances hereunder requested by a Lender in accordance with the terms of Section
2.10(g) hereof, substantially in the form of Exhibit C hereto with respect to
Working Advances made under the Working Line Loan, together with any extension,
renewal or amendment thereof, or substitution therefor, and each note evidencing
the Working Line Loan after the Conversion Date, in accordance with the terms of
Section 2.17 hereof, together with any extension, renewal or amendment thereof,
or substitution therefor.

        "Working Line Specified Percentage" means, as to any Lender, the
percentage indicated beside its name on the signature pages hereof designated as
its Working Line Specified Percentage, or as adjusted or specified (i) in
accordance with the terms of Section 2.17 hereof, (ii) in any Assignment and
Acceptance or (iii) in any amendment to this Agreement.

        "Year 2000 Problem" means the risk that computer applications and
devices containing imbedded computer chips used by the Borrower or any of its
Subsidiaries (or their respective customers and vendors) may be unable to
recognize and perform properly date-sensitive functions involving certain dates
prior to and any date after December 31, 1999.

        Section 1.2 Amendments and Renewals. Each definition of an agreement in
this Article 1 shall include such agreement as amended to date, and as amended
or renewed from time to time in accordance with its terms, but only with the
prior written consent of the Determining Lenders or Facility Determining
Lenders, as appropriate.

        Section 1.3 Construction. The terms defined in this Article 1 (except as
otherwise expressly provided in this Agreement) for all purposes shall have the
meanings set forth in Section 1.1 hereof, and the singular shall include the
plural, and vice versa, unless otherwise specifically required by the context.
All accounting terms used in this Agreement which are not

                                       31
<PAGE>   37

otherwise defined herein shall be construed in accordance with GAAP on a
consolidated basis for the Borrower and its Subsidiaries, unless otherwise
expressly stated herein. To the extent that a material change in GAAP occurs
after the Closing Date, the Borrower and Lenders agree to negotiate in good
faith to effect conforming changes to the financial covenants set forth in
Article 7 hereof.

                                    ARTICLE 2

                                      Loans

        Section 2.1 The Loans and Advances Thereunder.

        (a) Revolving Credit Loan.

               (i) Revolver Advances and Offshore Advances under the Revolving
        Credit Loan. Each Lender severally agrees, upon the terms and subject to
        the conditions of this Agreement, to make Revolver Advances under the
        Revolving Credit Loan in Dollars, and Offshore Advances under the
        Revolving Credit Loan in Dollars and Approved Offshore Currencies, to
        the Borrower on any Business Day from time to time up to and including
        the Maturity Date, in an aggregate amount for both Revolver Advances and
        Offshore Advances not to exceed its Revolving Credit Specified
        Percentage of the Revolving Credit Commitment (assuming compliance with
        all conditions to drawing); provided that at the time of the proposed
        incurrence of an Offshore Advance, the aggregate Dollar Equivalent
        amount of outstanding Offshore Advances shall not then exceed the
        Offshore Commitment. Notwithstanding any provision in any Loan Paper to
        the contrary, in no event shall the Lenders be required to make Revolver
        Advances or Offshore Advances if after giving effect to the making of
        such Revolver Advances or Offshore Advances, (A) (1) the Dollar
        Equivalent amount of all outstanding Revolving Credit Advances, plus (2)
        all outstanding Reimbursement Obligations would exceed the Revolving
        Credit Commitment, or (B) the Dollar Equivalent amount of all
        outstanding Offshore Advances would exceed the Offshore Commitment. On
        the Maturity Date unless sooner paid as provided herein, the outstanding
        Revolver Advances and Offshore Advances shall be repaid in full. No
        provision of this Section 2.1(a)(i) shall limit the ability of any
        Issuing Bank to make a Revolver Advance pursuant to Section 2.16(c)
        hereof.

               (ii) Swingline Advances under the Revolving Credit Loan. The
        Borrower may request the Swingline Bank to make, and the Swingline Bank
        shall make, on the terms and conditions hereinafter set forth, Swingline
        Advances under the Revolving Credit Loan in Dollars and Approved
        Offshore Currencies for Swingline Advances to the Borrower from time to
        time on any Business Day up to and including the Maturity Date in an
        aggregate principal Dollar Equivalent amount not to exceed at the time
        of the proposed incurrence of a Swingline Advance, the Swingline
        Commitment (assuming compliance with all conditions to drawing).
        Notwithstanding any provision of any Loan Paper to the contrary, in no
        event shall the Swingline Bank be required to make any Swingline Advance
        if after giving effect

                                       32
<PAGE>   38

        to the making of such Advance (A) the Dollar Equivalent principal amount
        of all outstanding Swingline Advances would exceed the Swingline
        Commitment, or (B) the Dollar Equivalent principal amount of all
        Revolving Credit Advances, plus the amount of all Reimbursement
        Obligations would exceed the Revolving Credit Commitment.

               (iii) Bid Rate Advances under the Revolving Credit Loan. Each
        Revolving Credit Lender may, in its sole discretion and on the terms and
        conditions set forth in this Agreement, make Bid Rate Advances -
        Revolving Credit under the Revolving Credit Loan to the Borrower in
        Dollars and Approved Offshore Currencies from time to time on any
        Business Day up to and including the Maturity Date in an aggregate
        amount not in excess of the difference between (A) the Revolving Credit
        Commitment, minus at any one time outstanding (B) the sum of the
        aggregate outstanding principal amount of all Revolving Credit Advances
        and all Reimbursement Obligations (assuming compliance with all
        conditions to drawing). Notwithstanding any provision of any Loan Paper
        to the contrary, (A) the Dollar Equivalent of all Bid Rate Advances -
        Revolving Credit may not exceed $300,000,000 in the aggregate at any
        time, and (B) in no event shall the Revolving Credit Lenders be required
        to make any Bid Rate Advance - Revolving Credit if after giving effect
        to the making of such Advance (i) the Dollar Equivalent principal amount
        of all outstanding Revolving Credit Advances, plus the amount of all
        Reimbursement Obligations, would exceed the Revolving Credit Commitment.
        There shall not be outstanding to any Lender, at any time, more than
        five Bid Rate Advances - Revolving Credit. The Borrower shall select an
        Interest Period for each Bid Rate Advance. Each Bid Rate Advance -
        Revolving Credit shall be in an aggregate principal amount which is at
        least $5,000,000, and which is an integral multiple of $1,000,000 in
        excess thereof (or the Dollar Equivalent of each such amount), and each
        Bid Rate Advance - Revolving Credit by a Lender shall be in a principal
        amount which is at least $1,000,000 and which is an integral multiple of
        $1,000,000 in excess thereof (or the Dollar Equivalent of each such
        amount). No Lender shall have any obligation to make Bid Rate Advances -
        Revolving Credit, and the Borrower shall have no obligation to accept an
        offer for Bid Rate Advances - Revolving Credit.

               (iv) Revolving Credit Advances, General. All Revolving Credit
        Advances shall be used for the purposes set forth in Section 5.9 hereof.
        Subject to Section 2.8 hereof, until the Maturity Date, Revolver
        Advances, Offshore Advances and Swingline Advances may be repaid and
        then reborrowed. On the Maturity Date unless sooner paid as provided
        herein, the outstanding Revolving Credit Advances shall be repaid in
        full. Any Revolver Advance shall, at the option of the Borrower as
        provided in Section 2.2 hereof (and, in the case of LIBOR Advances,
        subject to availability and the provisions of Article 9 hereof), be made
        as a Base Rate Advance or a LIBOR Advance; provided that there shall not
        be outstanding to any Lender, at any one time, more than fifteen LIBOR
        Advances under the Revolving Credit Loan. Any Offshore Advance shall,
        subject to availability and the provisions of Article 9 hereof, be made
        in Dollars or Approved Offshore Currencies, and bear interest at the
        Offshore Basis; provided that there shall not be outstanding to any
        Lender, at any one time, more than ten Offshore Advances. Any Swingline
        Advance shall, subject to availability and the provisions of Article 9
        hereof, be made in Dollars or Approved Offshore Currencies, and

                                       33
<PAGE>   39

        bear interest at , with respect to Swingline Advances made in Dollars,
        the Base Rate Basis, and with respect to Swingline Advances made in
        Approved Offshore Currencies, the Offshore Basis. Notwithstanding any
        provision of any Loan Paper to the contrary, in no event shall the
        Lenders be required to make Revolving Credit Advances if after giving
        effect to the making of such Revolving Credit Advances (A) the Dollar
        Equivalent principal amount of all outstanding Revolving Credit
        Advances, plus (B) all outstanding Reimbursement Obligations, would
        exceed the Revolving Credit Commitment. No provision of this Section
        2.1(a) shall limit the ability of any Issuing Bank to make a Revolver
        Advance pursuant to Section 2.16(c) hereof.

        (b) Working Line Loan.

               (i) Working Advances under the Working Line Loan. Each Lender
        severally agrees, on the terms and subject to the conditions of this
        Agreement, to make revolving Working Advances under the Working Line
        Loan in Dollars to the Borrower on a Business Day during the period from
        the Closing Date to the Option Date (or the next Extension Final
        Maturity if the Borrower exercised its Extension Option in accordance
        with the terms of Section 2.17(a) hereof), in an aggregate principal
        amount not to exceed at any time outstanding such Lender's Working Line
        Specified Percentage of the Working Line Commitment (assuming compliance
        with all conditions to drawings) for the purposes set forth in Section
        5.9 hereof. Any Working Advance shall, at the option of the Borrower as
        provided in Section 2.2 hereof (and, in the case of LIBOR Advances,
        subject to availability and the provisions of Article 9 hereof), be made
        as a Base Rate Advance or a LIBOR Advance; provided that there shall not
        be outstanding to any Lender, at any one time, more than ten LIBOR
        Advances that are Working Advances. On the Conversion Date (if any), in
        accordance with the terms of Section 2.17(b) hereof, all outstanding
        Working Advances shall convert to a Term Loan in the amount of the
        Working Advances outstanding on the Conversion Date, and such Term Loan
        shall be due and payable in one payment on the Maturity Date. Subject to
        the terms and conditions of this Agreement, until the earlier of the (x)
        Option Date (or the Extension Final Maturity if the Borrower exercised
        its first Extension Option in accordance with the terms of Section
        2.17(a) hereof) and (y) Conversion Date (if any), the Borrower may
        borrow, repay and reborrow the Working Advances; provided, however, that
        at no time shall the sum of the aggregate outstanding principal amount
        of all Working Line Advances exceed the Working Line Commitment. After
        the Conversion Date (if any) and prior to the Extension Final Maturity,
        no Advances will be available under the Working Line Loan, except
        Refinancing Advances.

                                       34
<PAGE>   40

               (ii) Bid Rate Advances under the Working Line Loan. Each Working
        Line Lender may, in its sole discretion and on the terms and conditions
        set forth in this Agreement, make Bid Rate Advances - Working Line under
        the Working Line Loan to the Borrower in Dollars from time to time in an
        aggregate amount not in excess of the difference between (i) the Working
        Line Commitment minus (ii) the sum of the aggregate outstanding
        principal amount of all Working Line Advances (assuming compliance with
        all conditions to drawings) for the purposes set forth in Section 5.9
        hereof. There shall not be outstanding to any Lender, at any time, more
        than five Bid Rate Advances - Working Line. Each Bid Rate Advance -
        Working Line shall be in an aggregate principal amount which is at least
        $5,000,000, and which is an integral multiple of $1,000,000 in excess
        thereof, and each Bid Rate Advance - Working Line by a Lender shall be
        in a principal amount which is at least $1,000,000 and which is an
        integral multiple of $1,000,000 in excess thereof. No Lender shall have
        any obligation to make Bid Rate Advances - Working Line, and the
        Borrower shall have no obligation to accept an offer for Bid Rate
        Advances - Working Line.

        Section 2.2 Manner of Borrowing and Disbursement.

        (a) Base Rate Advances. In the case of Base Rate Advances, the Borrower,
through an Authorized Signatory, shall give the Administrative Agent at least
one Business Day's irrevocable written notice, or irrevocable telephonic notice
followed immediately by written notice in the form of Exhibit L hereto (a
"Notice of Borrowing") (provided, however, that the Borrower's failure to
confirm any telephonic notice in writing shall not invalidate any notice so
given), of its intention to borrow or reborrow a Base Rate Advance hereunder.
Notice shall be given to the Administrative Agent prior to 11:00 a.m., Dallas,
Texas time, in order for such Business Day to count toward the minimum number of
Business Days required. Such Notice of Borrowing shall specify (i) the requested
funding date, which shall be a Business Day, (ii) the amount of the proposed
aggregate Base Rate Advances to be made by Lenders and (iii) whether such Base
Rate Advances are Revolver Advances, Working Advances or Swingline Advances.

        (b) LIBOR Advances. In the case of LIBOR Advances, the Borrower, through
an Authorized Signatory, shall give the Administrative Agent at least three
Business Days' irrevocable written notice, or irrevocable telephonic notice
followed immediately by a Notice of Borrowing (provided, however, that the
Borrower's failure to confirm any telephonic notice in writing shall not
invalidate any notice so given), of its intention to borrow or reborrow a LIBOR
Advance hereunder. Notice shall be given to the Administrative Agent prior to
11:00 a.m., Dallas, Texas time, in order for such Business Day to count toward
the minimum number of Business Days required. LIBOR Advances shall in all cases
be subject to availability and to Article 9 hereof. For LIBOR Advances, the
Notice of Borrowing shall specify (i) the requested funding date, which shall be
a Business Day, (ii) the amount of the proposed aggregate LIBOR Advances to be
made by Lenders, (iii) the Interest Period selected by the Borrower, provided
that no such Interest Period shall (A) extend past (I) the Maturity Date, with
respect to the Revolving Credit Loan, and (II) the Option Date or the Extension
Final Maturity, as applicable, with respect to the Working Line Loan, or (B)
prohibit or impair the Borrower's ability to comply with Section 2.8 hereof, and
(iv) whether such LIBOR Advances are Revolver Advances or Working Advances.

                                       35
<PAGE>   41

        (c) Offshore Advances. In the case of Offshore Advances, the Borrower,
through an Authorized Signatory, shall give the Administrative Agent at least
four Business Days' (or three Business Days' if such Offshore Advances is in
Dollars) irrevocable written notice, or irrevocable telephonic notice followed
immediately by written notice pursuant to a Notice of Borrowing (provided,
however, that the Borrower's failure to confirm any telephonic notice in writing
shall not invalidate any notice so given), of its intention to borrow or
reborrow an Offshore Advance hereunder. Notice shall be given to the
Administrative Agent prior to 10:00 a.m., Dallas, Texas time, in order for such
Business Day to count toward the minimum number of Business Days required.
Offshore Advances shall in all cases be subject to availability and to Article 9
hereof. For Offshore Advances, the Notice of Borrowing shall specify that such
Borrowing is under the Revolving Credit Loan and (i) the requested funding date,
which shall be a Business Day, (ii) whether such Offshore Advance is to be made
in Dollars or in an Approved Offshore Currency and specifying such Approved
Offshore Currency, (iii) the amount of the proposed aggregate Offshore Advances
to be made by Lenders and (iv) the Interest Period selected by the Borrower,
provided that no such Interest Period shall extend past the Maturity Date or
prohibit or impair the Borrower's ability to comply with Section 2.8 hereof.

        (d) Swingline Advances. In the case of Swingline Advances, the Borrower,
through an Authorized Signatory, shall give the Swingline Bank and the
Administrative Agent (i) not later than 11:00 a.m., Dallas time, on the Business
Day of the proposed Swingline Advance in the case of a Swingline Advance to be
made as a Base Rate Advance in Dollars, and (ii) at least four Business Days (or
three Business Days if such Offshore Advances is in Dollars) before the date of
any proposed Swingline Advance not described in clause (i), irrevocable
telephonic notice (provided, however, (A) the Borrower shall deliver written
notice at least once a week confirming the telephonic notices given by the
Borrower with respect to Swingline Advances during the immediately preceding
week and (B) that the Borrower's failure to confirm any telephonic notice in
writing shall not invalidate any notice so given), of its intention to borrow or
reborrow a Swingline Advance. Such telephonic notice and the written confirming
Notice of Borrowing shall specify (i) the requested funding date, which shall be
a Business Day, (ii) the amount of the proposed Swingline Advance, (iii) if the
Swingline Advance is not in Dollars, the Approved Offshore Currency for such
Swingline Advance and (iv) the Interest Period for such Swingline Advance. No
Swingline Advance may be continued or converted.

        (e) Continuation/Conversion. Subject to Sections 2.1 and 2.9 hereof, at
the end of any applicable Interest Period, the Borrower shall have the option to
continue any LIBOR Advance or Offshore Advance as LIBOR Advances or Offshore
Advances, respectively, in accordance with the following terms, or to convert
any Base Rate Advance into a LIBOR Advance or convert any LIBOR Advance into a
Base Rate Advance in accordance with the following terms:

               (i) Conversion of Base Rate Advances to, or Continuation of,
        LIBOR Advances and Conversion from a LIBOR Advance into a Base Rate
        Advance. The Borrower shall have the option to convert to LIBOR
        Advances, or upon the expiration of any Interest Period applicable to a
        LIBOR Advance, to continue all or any portion of such LIBOR Advance

                                       36
<PAGE>   42

        equal to $5,000,000 and integral multiples of $100,000, as a LIBOR
        Advance and the succeeding Interest Period of such continued LIBOR
        Advance shall commence on the last day of the Interest Period of the
        LIBOR Advance to be continued; provided that, (A) no succeeding Interest
        Period shall extend beyond (I) the Maturity Date with respect to
        continued or converted LIBOR Advances under the Revolving Credit Loan
        and (II) the Option Date of the Extension Final Maturity, as applicable,
        with respect to continued of converted LIBOR Advances under the Working
        Line Loan and (B) notwithstanding anything in this Agreement to the
        contrary, no outstanding Advance may be continued as, or converted into,
        a LIBOR Advance when any Default or Event of Default has occurred and is
        continuing. At least (x) three Business Days prior to a proposed
        conversion into a LIBOR Advance or continuation of a LIBOR Advance under
        the Revolving Credit Loan or Working Line Loan or (y) one Business Day
        prior to a proposed conversion into a Base Rate Advance under the
        Revolving Credit Loan or Working Line Loan, the Borrower, through an
        Authorized Signatory, shall give the Administrative Agent irrevocable
        written notice, or irrevocable telephonic notice followed immediately by
        written notice in substantially the form of Exhibit M hereto (a "Notice
        of Continuation/Conversion") (provided, however, that the Borrower's
        failure to confirm any telephonic notice in writing shall not invalidate
        any notice so given), stating (i) the proposed conversion/continuation
        date (which shall be a Business Day), (ii) the amount of the Advance to
        be converted/continued and whether it is a conversion into or
        continuation of a LIBOR Advance or a conversion into a Base Rate
        Advance, (iii) in the case of a conversion to, or a continuation of, a
        LIBOR Advance, the requested Interest Period and (iv) in the case of a
        conversion to, or a continuation of, a LIBOR Advance, that no Default or
        Event of Default has occurred and is continuing. If the Borrower,
        through an Authorized Signatory, shall fail to give any notice of
        continuation of a LIBOR Advance in accordance with this Section 2.2(e),
        the Borrower shall be deemed irrevocably to have requested that any such
        LIBOR Advance be converted to a Base Rate Advance in the same principal
        amount. Notice shall be given to the Administrative Agent prior to 11:00
        a.m., Dallas, Texas time, in order for such Business Day to count toward
        the minimum number of Business Days required.

               (ii) Continuation of Offshore Advances. The Borrower shall have
        the option, upon expiration of any Interest Period applicable to an
        Offshore Advance, to continue all or any portion of such Offshore
        Advance as an Offshore Advance equal to $5,000,000 and integral
        multiples of $100,000 (or the Dollar Equivalent of each such amount) in
        excess of that amount as an Offshore Advance and the succeeding Interest
        Period(s) of such continued Offshore Advance shall commence on the last
        day of the Interest Period of the Offshore Advance to be continued;
        provided, however, (a) Offshore Advances may not be made as Base Rate
        Advances or LIBOR Advances, (b) Offshore Advances may only be continued
        in the same currency as the original Borrowing, (c) the Dollar
        Equivalent of any Offshore Advance that is continued shall be
        recalculated as of the date of the continuation and (d) notwithstanding
        anything in this Agreement to the contrary, no outstanding Offshore
        Advance may be continued as an Offshore Advance when any Default or
        Event of Default has occurred and is continuing. At least four Business
        Days (or three Business Days' if such Offshore Advance is in Dollars)
        prior to a proposed continuation date, the Borrower, through

                                       37
<PAGE>   43

        an Authorized Signatory, shall give the Administrative Agent irrevocable
        written notice, or irrevocable telephonic notice followed immediately by
        a Notice of Continuation/Conversion (provided, however, that the
        Borrower's failure to confirm any telephonic notice in writing shall not
        invalidate any notice so given), stating (i) the proposed continuation
        date (which shall be a Business Day), (ii) the amount of the Offshore
        Advance and the Approved Offshore Currency of such Offshore Advance to
        be continued if the continued Offshore Advance was made in an Approved
        Offshore Currency, (iii) the requested Interest Period and (iv) that no
        Default or Event of Default has occurred and is continuing. Notice shall
        be given to the Administrative Agent prior to 11:00 a.m., Dallas, Texas
        time, in order for such Business Day to count toward the minimum number
        of Business Days required. If the Borrower, through an Authorized
        Signatory, shall fail to give any notice in accordance with this Section
        2.2(e)(ii), the Borrower shall be deemed irrevocably to have requested
        (notwithstanding the failure of the Borrower at such time to satisfy
        each condition specified in Article 3) that such Offshore Advance be
        repaid by an automatic Mandatory Revolver Advance in an amount equal to
        the Dollar Equivalent of the amount of such Offshore Advance, and
        bearing interest at the Base Rate Basis.

        (f) Minimum Amounts. The aggregate amount of Base Rate Advances to be
made by the Lenders on any day shall be in a principal amount which is at least
$1,000,000 and which is an integral multiple of $100,000; provided, however,
that such amount may equal the unused amount of the Revolving Credit Commitment
or the Working Line Commitment, as applicable. The aggregate amount of LIBOR
Advances to be made by the Lenders on any day shall be in a principal amount
which is at least $5,000,000 and which is an integral multiple of $100,000;
provided, however, that such amount may equal the unused amount of the Revolving
Credit Commitment or the Working Line Commitment, as applicable. The aggregate
amount of Offshore Advances having the same Interest Period and to be made by
the Lenders on any day shall be in a Dollar Equivalent principal amount which is
at least $5,000,000 and which is an integral multiple of $100,000 (or the Dollar
Equivalent of each such amount on the date of such Advance). The aggregate
amount of any Swingline Advances to be made by the Swingline Bank on any day
shall be in a principal amount which is at least equal to the Dollar Equivalent
of $100,000 and which is an integral multiple of the Dollar Equivalent of
$100,000 or the Dollar equivalent thereof; provided, however, that such amount
may equal the unused amount of the Swingline Commitment.

        (g) Notice and Disbursement. The Administrative Agent shall promptly
notify the Lenders of each notice received from the Borrower pursuant to this
Section. If such notice from the Borrower designated an Offshore Advance or a
Swingline Advance in an Approved Offshore Currency, the Administrative Agent
shall promptly notify the Borrower and the Revolving Credit Lenders or the
Swingline Bank, as appropriate, of the Dollar Equivalent thereof. Failure of the
Borrower to give any notice in accordance with Section 2.2(e) hereof shall
result in a repayment of any existing Offshore Advance or LIBOR Advance on the
applicable Payment Date by a Mandatory Revolver Advance which is a Base Rate
Advance. Each Lender shall, not later than noon, Dallas, Texas time, on the date
of any Revolver Advance, Working Advance and Offshore Advance that is not a
Refinancing Advance, deliver to the Administrative Agent, at its address set
forth herein, such Lender's Applicable Specified Percentage of such Advance in
immediately available funds in

                                       38
<PAGE>   44

accordance with the Administrative Agent's instructions, except that if such
Advance is an Offshore Advance denominated in an Approved Offshore Currency,
each Revolving Credit Lender shall make available its funds at such office as
the Administrative Agent has previously specified in a notice to each Lender, in
such funds as are then customary for the settlement of international
transactions in the applicable Approved Offshore Currency and as customary, and
as specified by the Administrative Agent, in each case no later than such local
time as is necessary for such funds to be received and transferred. Prior to
2:00 p.m. in the time zone of the capital city of the currency in which such
Advance is issued, on the date of any Revolver Advance, Working Advance or
Offshore Advance hereunder, the Administrative Agent shall, subject to
satisfaction of the conditions set forth in Article 3, disburse the amounts made
available to the Administrative Agent by the Lenders by (i) transferring such
amounts by wire transfer pursuant to the Borrower's instructions, or (ii) in the
absence of such instructions, crediting such amounts to the account of the
Borrower maintained with the Administrative Agent. All Revolver Advances and
Offshore Advances shall be made by each Lender according to its Revolving Credit
Specified Percentage. All Working Advances shall be made by each Lender
according to its Working Line Specified Percentage. No Lender shall be relieved
of its obligation to fund its (i) Revolving Credit Specified Percentage of any
Revolver Advance or Offshore Advance notwithstanding the fact that at any time
the aggregate outstanding principal amount of all Bid Rate Advances - Revolving
Credit made by such Lender plus its outstanding Revolver Advances and Offshore
Advances exceed its Revolving Credit Specified Percentage of the Revolving
Credit Commitment, or (ii) Working Line Specified Percentage of any Working
Advance notwithstanding the fact that at any time the aggregate outstanding
principal amount of all Bid Rate Advances - Working Line made by such Lender
plus its outstanding Working Advances exceed its Working Line Specified
Percentage of the Working Line Commitment.

        (h) Swingline Advances. After confirming with the Administrative Agent
the availability of funds under the Revolving Credit Commitment, the Swingline
Bank shall, not later than 2:00 p.m., Dallas, Texas time, on the date of any
Swingline Advance, deliver to the Administrative Agent at its address set forth
herein, the amount of such Swingline Advance in immediately available funds in
accordance with the Administrative Agent's instructions. Prior to 2:30 p.m.,
Dallas, Texas time, on the date of any Swingline Advance, the Administrative
Agent shall, subject to the conditions set forth in Articles 2 and 3 hereof,
disburse the amount made available to the Administrative Agent by the Swingline
Bank by (i) transferring such amounts by wire transfer pursuant to the
Borrower's instruction or (ii) in the absence of such instructions, crediting
such amounts to the account of the Borrower maintained with the Administrative
Agent. Forthwith upon demand by the Swingline Bank at any time, including after
a Default or Event of Default, and in any event upon the making of the direction
specified by Section 8.2 to authorize the Administrative Agent to declare the
Advances due and payable pursuant to the provisions of Section 8.2, each
Revolving Credit Lender, including the Swingline Bank, notwithstanding the
failure of the Borrower at such time to satisfy each condition specified in
Articles 2 and 3, shall make, by 12:00 noon, Dallas, Texas time, on the first
Business Day following receipt by such Lender of notice from the Swingline Bank,
a Mandatory Revolver Advance which is a Base Rate Advance in an amount equal to
the product of (i) the Revolving Credit Specified Percentage of such Lender
times (ii) the aggregate outstanding principal amount of the Swingline Advances
(to be made in the Dollar Equivalent of such Swingline Advance determined as of
the date of receipt of such notice).

                                       39
<PAGE>   45

The proceeds of such Mandatory Revolver Advances shall be applied by the
Administrative Agent to repay the outstanding Swingline Advances.

        If for any reason (including any Debtor Relief Law), Revolver Advances
may not be made on the date otherwise required above, each Revolving Credit
Lender hereby agrees that it shall forthwith purchase (as of the date on which
such Revolver Advance would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such
purchase) from the Swingline Bank such participations in the outstanding
Swingline Advances as shall be necessary to cause the Revolving Credit Lenders
to share in such Swingline Advances ratably based upon their Revolving Credit
Specified Percentages; provided that (i) all interest payable on the Swingline
Advance shall be for the account of the Swingline Bank until the date as of
which the respective participation is required to be purchased and, to the
extent attributable to the purchased participation, shall be payable to the
participating Revolving Credit Lender from and after such date and (ii) at the
time any purchase of participations pursuant to this sentence is actually made,
the purchasing Lender shall be required to pay the appropriate Swingline Bank
interest on the principal amount of the participation purchased for each day
from and including the day upon which such Revolver Advance would otherwise have
occurred to but excluding the date of payment for such participation, at the
overnight Federal Funds Rate for the first five days and at the Base Rate Basis
for each day thereafter.

        (i) Bid Rate Advances

               (i) With respect to each Bid Rate Borrowing, the Borrower shall
        give the Administrative Agent prior to 10:00 a.m. (Dallas, Texas time),
        in the case of Offshore Bid Rate Advances, at least five Business Days
        prior to the proposed date of Bid Rate Borrowing, and in the case of
        Advances bearing interest at a Margin over the LIBOR Rate, at lease four
        Business Days prior to the proposed date of Bid Rate Borrowing, written
        notice of its intention to borrow Bid Rate Advances pursuant to a Bid
        Rate Advance Request. Such Bid Rate Advance Request shall specify (a)
        whether such Bid Rate Borrowing is to be made under the Working Line
        Loan or the Revolving Credit Loan, (b) the requested date of the Bid
        Rate Borrowing, which shall be a Business Day, (c) the aggregate amount
        of the proposed Bid Rate Borrowing (which shall be at least $5,000,000
        and which is an integral multiple of $1,000,000 in excess thereof), (d)
        the Interest Period with respect thereto, provided that such Interest
        Period shall not extend past the Maturity Date, the Option Date or the
        Conversion Date, as applicable, and (e) if such Advance is a Bid Rate
        Advance - Revolving Credit, whether such Advance is to be made in
        Dollars in an Approved Offshore Currency and specifying such Approved
        Offshore Currency. Bid Rate Advance Requests that do not conform
        substantially to the form of Exhibit N hereto may be rejected by the
        Administrative Agent, and the Administrative Agent shall give prompt
        notice to the Borrower of such rejection. The Borrower shall pay a $500
        non-refundable, administrative fee for the account of the Administrative
        Agent for each notice of proposed Bid Rate Borrowings. Such fee shall be
        paid to the Administrative Agent on the date of delivery of the
        Borrower's notice of intention to borrow Bid Rate Advances, and shall
        not be refunded, notwithstanding that the

                                       40
<PAGE>   46

        proposed Bid Rate Borrowing is canceled by the Borrower or no Lender
        offers to make a Bid Rate Advance.

               (ii) Upon the receipt by the Administrative Agent of a Bid Rate
        Advance Request that conforms with the requirements herein, the
        Administrative Agent shall, by telecopy in the form of the Invitation to
        Bid, (A) with respect to Bid Rate Advances under the Revolving Credit
        Loan, invite each Revolving Credit Lender to bid, and (B) with respect
        to Bid Rate Advances under the Working Line Loan, invite each Working
        Line Lender to bid, in each case on the terms and conditions of this
        Agreement, to make Bid Rate Advances - Revolving Credit and Bid Rate
        Advances - Working Line, as applicable, pursuant to the Bid Rate Advance
        Request.

               (iii) Each Revolving Credit Lender shall, if, in its sole
        discretion, it elects to do so, irrevocably offer to make one or more
        Bid Rate Advances - Revolving Credit to the Borrower and each Working
        Line Lender shall, if, in its sole discretion, it elects to do so,
        irrevocably offer to make one or more Bid Rate Advances - Working Line,
        as applicable, to the Borrower as part of such proposed Bid Rate
        Borrowing, in each case at a Margin over the LIBOR Rate, or, if such Bid
        Rate Advance is made under the Revolving Credit Loan, at a Margin over
        the LIBOR Rate (if made such Advance is to be made domestically in
        Dollars)or the Offshore Dollar Rate or Approved Offshore Currency Rate,
        as applicable, specified by each such Lender in its sole discretion, by
        delivering a Confirmation of Bid to the Administrative Agent before
        10:00 a.m. (Dallas, Texas time), four Business Days prior to the
        proposed date of any such Bid Rate Borrowing, in the case of a request
        for Bid Rate Advances - Revolving Credit that are Offshore Bid Rate
        Advances, and three Business Days prior to the proposed date of any such
        Bid Rate Borrowing, in the case of a request for Bid Rate Advances -
        Revolving Credit and Bid Rate Advances - Working Line that are domestic
        Bid Rate Advances to be made in Dollars based on a Margin over the LIBOR
        Rate (A) setting forth (1) the minimum amount (which shall be $1,000,000
        or an integral multiple of $1,000,000 in excess thereof or the Dollar
        Equivalent thereof) and maximum amount of each Bid Rate Advance which
        such Lender would be willing to make as part of the proposed Bid Rate
        Borrowing (which amounts may exceed an amount equal to (x) such Lender's
        Revolving Credit Specified Percentage of the Revolving Credit Commitment
        or (y) such Lender's Working Line Specified Percentage of the Working
        Line Commitment, as applicable) (2) if such Bid Rate Advance is a Bid
        Rate Advance - Revolving Credit, whether such Bid Rate Advance is to be
        made as an Offshore Bid Rate Advance or a domestic Advance in Dollars
        (and the Approved Offshore Currency, if applicable), and (3) the Margin
        therefor, and (B) confirming the Interest Period therefor. Confirmation
        of bids that do not conform substantially to Exhibit O hereto may be
        rejected by the Administrative Agent, and the Administrative Agent shall
        notify the applicable Lender of such rejection as soon as practicable.
        If any Lender shall fail to respond to the Administrative Agent by such
        time, such Lender shall be deemed to have elected not to make an offer.
        Any Confirmation of Bid submitted by a Lender pursuant to this Section
        2.2(i) is irrevocable.

                                       41
<PAGE>   47

               (iv) The Administrative Agent shall promptly notify the Borrower
        of the number of Confirmations of Bid, the interest rate(s) and Interest
        Period(s) applicable thereto, the maximum principal amount bid at each
        interest rate for each Interest Period, and the identity of each Lender
        submitting a Confirmation of Bid.

               (v) Not later than 12:00 noon (Dallas, Texas time) four Business
        Days prior to the proposed date of Bid Rate Borrowing in the case of
        Offshore Bid Rate Advances, the Borrower shall, in turn, either

                   (A) cancel such proposed Bid Rate Borrowing by giving the
               Administrative Agent notice to that effect; or

                   (B) accept one or more of the offers made by any Lender or
               Lenders pursuant to clause (iii) above, in its sole discretion,
               by giving notice to the Administrative Agent of the amount of
               each Bid Rate Advance (which amount shall be equal to or greater
               than the minimum amount, and equal to or less than the maximum
               amount, for which notification was given to the Borrower by any
               Lender for such Bid Rate Advance pursuant to clause (iii) above)
               to be made by each Lender as part of such Bid Rate Borrowing, and
               reject any remaining offers made by Lenders pursuant to clause
               (iii) above by giving the Administrative Agent notice to that
               effect; provided, that if offers are made by two or more Lenders
               with the same Offshore Bid Rates for a greater aggregate
               principal amount than the amount for which such offers are
               accepted for the related term, the principal amount of Bid Rate
               Advances accepted shall be allocated by the Borrower among such
               Lenders as nearly as possible (in multiples not less than
               $1,000,000 or the Dollar Equivalent thereof) in proportion to the
               aggregate principal amount of such offers, and the aggregate
               principal amount of offers accepted by the Borrower shall not
               exceed the maximum amount contained in the related Bid Rate
               Advance Request.

               (vi) The Administrative Agent shall promptly give telephonic
        notice to each bidding Lender if any of its offers have been accepted
        (and if so, whether it was for a Bid Rate Advance - Revolving Credit or
        a Bid Rate Advance - Working Line, in what amount, at what interest rate
        and for what Interest Period), and each successful Lender will thereupon
        become bound, subject to the other applicable conditions hereof, to make
        each Bid Rate Advance for which its offer has been accepted.

               (vii) After completing the notifications referred to in clause
        (vi) above, the Administrative Agent shall notify each bidding Lender of
        (i) the aggregate amount of Bid Rate Advances - Revolving Credit and Bid
        Rate Advances - Working Line made in connection with such proposed Bid
        Rate Borrowing, (ii) the maturities thereof, and (iii) the lowest and
        highest interest rates at which Bid Rate Advances were made for each
        maturity.

               (viii) If the Administrative Agent shall at any time elect to
        submit a bid for a Bid Rate Advance in its capacity as a Lender, it
        shall submit such bid directly to the Borrower

                                       42
<PAGE>   48

        one-half hour earlier than the latest time at which other Lenders are
        required to submit their bid to the Administrative Agent pursuant to
        Section 2.2(i)(iii) hereof.

               (ix) If the Borrower accepts one or more offers made by any
        Lender or Lenders pursuant to clause (v)(B) above, each such Lender
        shall, unless any applicable condition specified in Article 3 hereof has
        not been satisfied, not later than 12:00 noon (Dallas, Texas time) on
        the date of a Bid Rate Advance hereunder, make available to the
        Administrative Agent the principal amount of each Bid Rate Advance in
        immediately available funds, to be disbursed by the Administrative Agent
        by wire transfer pursuant to instructions of the Borrower.

        Section 2.3 Interest. Each Revolver Advance shall bear interest (at the
election of the Borrower in accordance with Section 2.2 hereof) at the Base Rate
Basis or the LIBOR Basis.

        (a) On Base Rate Advances.

               (i) The Borrower shall pay interest on the outstanding unpaid
        principal amount of each Base Rate Advance, from the date such Advance
        is made until it is due (whether at maturity, by reason of acceleration,
        by scheduled reduction, or otherwise) or repaid, at a simple interest
        rate per annum equal to the Base Rate Basis as in effect from time to
        time, provided that interest on Base Rate Advances shall not exceed the
        Maximum Amount. If at any time the Base Rate Basis would exceed the
        Highest Lawful Rate, interest payable on Base Rate Advances shall be
        limited to the Highest Lawful Rate, but the Base Rate Basis shall not
        thereafter be reduced below the Highest Lawful Rate until the total
        amount of interest accrued on such Advances equals the amount of
        interest that would have accrued if the Base Rate Basis had been in
        effect at all times.

               (ii) Interest on each Base Rate Advance shall be computed on the
        basis of a year of 365 or 366 days, as applicable, for the number of
        days actually elapsed, and shall be payable in arrears on each Quarterly
        Date and on (A) the Maturity Date, with respect to Base Rate Advances
        under the Revolving Credit Loan, or (B) the Option Date or the Extension
        Final Maturity, as applicable, with respect to Base Rate Advances under
        the Working Line Loan.

        (b) On LIBOR Advances.

               (i) The Borrower shall pay interest on the unpaid principal
        amount of each LIBOR Advance, from the date such Advance is made until
        it is due (whether at maturity, by reason of acceleration, by scheduled
        reduction, or otherwise) or repaid, at a rate per annum equal to the
        LIBOR Basis for such Advance. The Administrative Agent, whose
        determination shall be conclusive, shall determine the LIBOR Basis on
        the second Business Day prior to the applicable funding date and shall
        notify the Borrower and the Lenders of such LIBOR Basis.

                                       43
<PAGE>   49

               (ii) Subject to Section 11.9 hereof, interest on each LIBOR
        Advance shall be computed on the basis of a 360-day year for the actual
        number of days elapsed, and shall be payable in arrears on the
        applicable Payment Date and on (A) the Maturity Date, with respect to
        LIBOR Advances under the Revolving Credit Loan, or (B) the Option Date
        or the Extension Final Maturity, as applicable, with respect to LIBOR
        Advances under the Working Line Loan; provided, however, that if the
        Interest Period for such Advance exceeds three months, interest shall
        also be due and payable in arrears on each Quarterly Date during such
        Interest Period.

        (c) On Offshore Advances.

               (i) The Borrower shall pay interest on the unpaid principal
        amount of each Offshore Advance, from the date such Advance is made
        until it is due (whether at maturity, by reason of acceleration, by
        scheduled reduction, or otherwise) or repaid, at a rate per annum equal
        to the Offshore Basis for such Advance. The Administrative Agent, whose
        determination shall be conclusive, shall determine the Offshore Basis on
        the second Business Day prior to the applicable funding date and shall
        notify the Borrower and the Lenders of such Offshore Basis.

               (ii) Subject to Section 11.9 hereof, interest on each Offshore
        Advance shall be computed on the basis of a 360-day year for the actual
        number of days elapsed, and shall be payable in arrears on the
        applicable Payment Date and on the Maturity Date; provided, however,
        that if the Interest Period for such Advance exceeds three months,
        interest shall also be due and payable in arrears on each Quarterly Date
        during such Interest Period.

        (d) On Swingline Advances.

               (i) The Borrower shall pay interest on the outstanding principal
        amount of each Swingline Advance, from the date such Swingline Advance
        is made until it is due (whether at maturity, by reason of acceleration
        or otherwise) and repaid, at an interest rate per annum equal to (A) (I)
        the Offshore Basis, if such Swingline Advance is made in an Approved
        Offshore Currency or (II) the Base Rate Basis, if such Swingline Advance
        is made in Dollars, in each case in effect from time to time, minus (B)
        the discount of such Offshore Basis or Swingline Basis necessary to
        allow the Borrower to recapture commitment fees that would be earned by
        such Swingline Lender during the term of such Swingline Advance pursuant
        to Section 2.4(a)(i) hereof, but in no event higher than the Highest
        Lawful Rate.

               (ii) Subject to Section 11.9 hereof, interest on Swingline
        Advances made in (A) an Approved Offshore Currency shall be computed on
        the basis of a 360-day year for the actual number of days elapsed, and
        (B) Dollars, shall be computed on the basis of a 365 or 366-day year, as
        applicable, for the actual number of days elapsed, and shall be payable
        in arrears on each Payment Date and on the Maturity Date.

        (e) On Bid Rate Advances. The Borrower shall pay interest on the
outstanding unpaid principal amount of each Bid Rate Advance at a per annum rate
equal to the interest rate agreed to

                                       44
<PAGE>   50

by the Borrower and the Lender making such Bid Rate Advance pursuant to Section
2.2(i) hereof. Interest on each Bid Rate Advance shall be computed and shall be
payable at such times as agreed upon between the Borrower and the Lender making
such Advance pursuant to Section 2.2(i) hereof.

        (f) Interest if No Notice of Selection of Continuation of an Offshore
Advance or LIBOR Advance, or Interest Period. If the Borrower fails to give the
Administrative Agent timely notice of its selection of the continuation of a
LIBOR Advance or Offshore Advance, or if for any reason a determination of an
Offshore Basis or LIBOR Rate for any Advance is not timely concluded due to the
fault of the Borrower, such Offshore Advance shall be deemed to be a Mandatory
Revolver Advance and such LIBOR Advance shall be deemed to be a Base Rate
Advance, and the Base Rate Basis shall apply to each such Advance. If the
Borrower fails to give the Administrative Agent timely notice of its selection
of an Interest Period for an Offshore Advance or a LIBOR Advance, a one-month
Interest Period shall apply to the applicable Advance. If the Borrower fails to
give the Administrative Agent timely notice of its selection of an Interest
Period for a Swingline Advance, a 30 day Interest Period shall apply to the
applicable Swingline Advance.

        (g) Interest After an Event of Default. Notwithstanding the foregoing,
(i) After an Event of Default (other than an Event of Default specified in
Section 8.1(f) or (g) hereof) and during any continuance thereof, at the option
of Determining Lenders, and (ii) after an Event of Default specified in Section
8.1(f) or (g) hereof and during any continuance thereof, automatically and
without any action by the Administrative Agent or any Lender, the Obligations
shall bear interest at a rate per annum equal to the Default Rate. Such interest
shall be payable on the earlier of demand, the Maturity Date (if such interest
is on the Revolving Credit Loan) or the Option Date, or the Extension Final
Maturity, as applicable, with respect to the Working Line Loan, or upon the
occurrence of an Event of Default specified in Section 8.1(f) or 8.1(g) hereof,
immediately, and shall accrue until the earlier of (i) waiver or cure (to the
satisfaction of the Determining Lenders) of the applicable Event of Default,
(ii) agreement by the Lenders to rescind the charging of interest at the Default
Rate, or (iii) payment in full of the Obligations. The Lenders shall not be
required to accelerate the maturity of the Advances, to exercise any other
rights or remedies under the Loan Papers, or to give notice to the Borrower of
the decision to charge interest at the Default Rate. The Lenders will undertake
to notify the Borrower, after the effective date, of the decision to charge
interest at the Default Rate, but any failure to do so will not affect the
application of such rate.

        Section 2.4 Fees.

        (a) Commitment Fees. Subject to Section 11.9 hereof, the Borrower agrees
to pay as follows:

               (i) Revolving Credit Loan. From the Closing Date until the
        Maturity Date, with respect to the Revolving Credit Loan, the Borrower
        shall pay to the Administrative Agent, for the ratable account of the
        Lenders (based on each Lender's Revolving Credit Specified Percentage),
        a per annum commitment fee (the "Revolving Credit Commitment Fee") equal
        to the Applicable Commitment Fee Percentage for the Revolving Credit
        Loan on the daily average unborrowed balance of the Revolving Credit
        Commitment, minus all

                                       45
<PAGE>   51

        Reimbursement Obligations. For purposes of calculating the Revolving
        Credit Commitment Fee hereunder only, (A) undrawn portions of Letters of
        Credit outstanding from time to time will reduce the unused portion of
        the Revolving Credit Commitment, and (B) outstanding Bid Rate Advances
        and Swingline Advances made under the Revolving Credit Loan shall not
        reduce the unused portion of the Revolving Credit Commitment.

               (ii) Working Line Loan. From the Closing Date until the earlier
        of the Conversion Date (if any) or the Maturity Date, with respect to
        the Working Line Loan, the Borrower shall pay to the Administrative
        Agent, for the ratable account of the Lenders (based on each Lender's
        Working Line Specified Percentage), a per annum commitment fee (the
        "Working Line Commitment Fee") equal to the Applicable Commitment Fee
        Percentage for the Working Line Loan on the daily average unborrowed
        balance of the Working Line Commitment. For purposes of calculating the
        Working Line Commitment Fee hereunder only, outstanding Bid Rate
        Advances shall not reduce the unused portion of the Working Line
        Commitment.

               (iii) Commitment Fees, Generally. The Commitment Fees shall be
        subject to reduction or increase, as applicable in accordance with the
        terms of the definition of Applicable Commitment Fee Percentage.
        Commitment Fees shall be payable in arrears on each Quarterly Date and
        (A) with respect to the Revolving Credit Commitment Fee, on the Maturity
        Date, and (B) with respect to the Working Line Commitment Fee, on the
        earlier of the Conversion Date (if any) or the Maturity Date. All
        Commitment Fees shall be (I) fully earned when due, (II) subject to
        Section 11.9 hereof, nonrefundable when paid and (III) subject to
        Section 11.9 hereof, computed on the basis of a year of 365 or 366 days,
        as applicable, for the actual number of days elapsed.

        (b) Other Fees. Subject to Section 11.9 hereof, the Borrower agrees to
pay to the Administrative Agent and the Syndication Agent for their accounts as
specified therein, all fees set forth in the Fee Letters.

        Section 2.5 Prepayment.

        (a) Voluntary Prepayments. The principal amount of any Base Rate Advance
may be prepaid in full or in part at any time, without penalty and, upon two
Business Days' prior telephonic notice (to be promptly followed by written
notice), and any LIBOR Advance or Offshore Advance may be prepaid, subject to
the other terms of this Section, upon three Business Days' prior telephonic
notice (to be promptly followed by written notice) by an Authorized Signatory to
the Administrative Agent. LIBOR Advances and Offshore Advances may be
voluntarily prepaid only so long as the Borrower concurrently reimburses the
Lenders in accordance with Section 2.9 hereof. Any notice of prepayment shall be
irrevocable. Notwithstanding anything herein to the contrary, no Bid Rate
Advances may be prepaid without the prior consent of the Lender making such Bid
Rate Advance.

        (b) Mandatory Prepayment. On or before the date of any reduction of any
of the Commitments, the Borrower shall prepay applicable outstanding Advances
made under the

                                       46
<PAGE>   52

Applicable Commitment (as determined in accordance with Section 2.10 hereof) in
an amount necessary to reduce the sum of such outstanding Advances (and
Reimbursement Obligations, if applicable) to an amount less than or equal to the
Applicable Commitment as so reduced. To the extent that any prepayment requires
that a LIBOR Advance or an Offshore Advance be repaid on a date other than the
last day of its Interest Period, the Borrower shall reimburse each Lender in
accordance with Section 2.9 hereof. Furthermore, if on any Reset Date, the
Dollar Equivalent of all outstanding Advances under any Loan plus all
Reimbursement Obligations exceeds the Applicable Commitment as a result of a
change in Dollar Equivalents ("Dollar Equivalent Excess"), the Administrative
Agent shall promptly notify the Borrower thereof, and within two Business Days
after receipt of such notice, the Borrower shall prepay Advances under the
Applicable Commitment in an amount equal to the Dollar Equivalent Excess.

        (c) Prepayments, Generally. Allocation of prepayments among the
Revolving Credit Loan and the Working Line Loan, and the various subfacilities
of the Loans described in this Agreement shall be determined in accordance with
the terms of Section 2.10(d) hereof. Any voluntary partial prepayment of a Base
Rate Advance shall be in a principal amount which is at least $1,000,000 and
which is an integral multiple of $100,000. Any voluntary partial prepayment of a
LIBOR Advance shall be in a principal amount which is at least $1,000,000 and
which is an integral multiple of $100,000, and to the extent that any prepayment
of a LIBOR Advance is made on a date other than the last day of its Interest
Period, the Borrower shall reimburse each Lender in accordance with Section 2.9
hereof. Any voluntary partial prepayment of an Offshore Advance shall be in a
principal amount which is at least $1,000,000 and which is an integral multiple
of $100,000 (or in each case, the Dollar Equivalent thereof), and to the extent
that any prepayment of an Offshore Advance is made on a date other than the last
day of its Interest Period, the Borrower shall reimburse each Lender in
accordance with Section 2.9 hereof.

        Section 2.6 Reduction and Change of Commitments.

        (a) Voluntary Reduction. The Borrower shall have the right, upon not
less than 3 Business Days' notice (provided no notice shall be required for a
termination in whole of the Commitments) by an Authorized Signatory to the
Administrative Agent (if telephonic, to be confirmed by telex or in writing on
or before the date of reduction or termination), which shall promptly notify the
Lenders, to terminate or reduce the Revolving Credit Commitment or the Working
Line Commitment, in whole or in part. Each partial termination shall be in an
aggregate amount which is at least $5,000,000 and which is an integral multiple
of $100,000, and no voluntary reduction in any Commitment shall cause any LIBOR
Advance or Offshore Advance to be repaid prior to the last day of its Interest
Period. Notwithstanding anything herein to the contrary, in no event shall the
Borrower have the right to reduce the Revolving Credit Commitment to an amount
less than the aggregate outstanding Reimbursement Obligations unless such
Reimbursement Obligations are cash collateralized with funds adequate to pay all
interest, expenses and fees to be earned throughout the remaining term of such
Reimbursement Obligations.

        (b) Reduction and Termination of the Commitments.

                                       47
<PAGE>   53

               (i) The Working Line Commitment shall be automatically and
        immediately reduced to zero (i) on the first Option Date, unless the
        Lenders have agreed to an Extension Option in accordance with the terms
        of Section 2.17 hereof, (ii) on the Conversion Date (if any) or (iii) on
        the Extension Final Maturity (as extended from time to time in
        accordance with the terms of Section 2.17 hereof).

               (ii) All of the Commitments shall be automatically and
        immediately reduced to zero and terminated on the Maturity Date.

        (c) General Requirements. Allocation of reductions in the Commitments
among the Revolving Credit Loan and the Working Line Loan, and the various
subfacilities of the Loans described in this Agreement shall be determined in
accordance with the terms of Section 2.10(d) hereof. Upon any reduction of any
Commitments pursuant to this Section 2.6, the Borrower shall immediately make a
repayment of applicable Advances in accordance with Section 2.5 hereof. The
Borrower shall reimburse each Lender for any loss or out-of-pocket expense
incurred by each Lender in connection with any such payment, as set forth in
Section 2.9 hereof. The Borrower shall not have any right to rescind any
termination or reduction. Once reduced, neither the Revolving Credit Commitment
nor the Working Line Commitment may be increased or reinstated.

        Section 2.7 Non-Receipt of Funds by the Administrative Agent. Unless the
Administrative Agent shall have been notified by a Lender prior to the date of
any proposed Advance (which notice shall be effective upon receipt) that such
Lender does not intend to make the proceeds of such Advance available to the
Administrative Agent, the Administrative Agent may assume that such Lender has
made such proceeds available to the Administrative Agent on such date, and the
Administrative Agent may in reliance upon such assumption (but shall not be
required to) make available to the Borrower a corresponding amount. If such
corresponding amount is not in fact made available to the Administrative Agent
by such Lender, the Administrative Agent shall be entitled to recover such
amount on demand from such Lender (or, if such Lender fails to pay such amount
forthwith upon such demand, from the Borrower) together with interest thereon in
respect of each day during the period commencing on the date such amount was
available to the Borrower and ending on (but excluding) the date the
Administrative Agent receives such amount from the Lender, with interest thereon
if paid by such Lender, at a per annum rate equal to the Federal Funds Rate, and
if paid by the Borrower, at the applicable Base Rate Basis. No Lender shall be
liable for any other Lender's failure to fund an Advance hereunder.

        Section 2.8 Payment of Principal of Advances. The Borrower agrees to pay
the principal amount of the Advances to the Administrative Agent for the account
of the Lenders as follows:

        (a) End of Interest Period. The principal amount of each LIBOR Advance,
Offshore Advance, Swingline Advance and Bid Rate Advance hereunder shall be due
and payable on its Payment Date, which principal payment may be made by means of
a Refinancing Advance.

        (b) Commitment Reduction. On the date of any reduction of the
Commitments pursuant to Section 2.6 hereof, including the Maturity Date, the
Option Date (if applicable), the Conversion Date (if any) and the Extension
Final Maturity (if applicable), the aggregate amount of the Advances

                                       48
<PAGE>   54

outstanding on such date of reduction with respect to any Loan, in excess of the
Applicable Commitment (as determined in accordance with the terms of Section
2.10(d) hereof) as reduced (minus all outstanding Reimbursement Obligations, if
the Applicable Commitment is the Revolving Credit Commitment) shall be due and
payable, which principal payment may not be made by means of Refinancing
Advances.

        (c) Option Date or Extension Final Maturity Date. The principal amount
of the Working Line Advances outstanding shall be due and payable (i) on the
first Option Date, unless the Borrower has elected a Conversion Option or the
Borrower and the Lenders have agreed to an Extension Option in accordance with
the terms of Section 2.17 hereof, or (ii) on the Extension Final Maturity (as
extended from time to time in accordance with the terms of Section 2.17 hereof),
unless the Borrower has elected the Conversion Option.

        (d) Maturity Date. The principal amount of all of the Advances under the
Revolving Credit Loan and the Working Line Loan (unless due pursuant to
subsection (c) above), the Term Loan (if any), all accrued interest and fees
thereon, and all other Obligations, shall be due and payable in full on the
Maturity Date.

        Section 2.9 Reimbursement. Whenever any Lender shall sustain or incur
any losses or reasonable out-of-pocket expenses in connection with (a) failure
by the Borrower to borrow any LIBOR Advance, Offshore Advance (or Swingline
Advance or Bid Rate Advance which is at a fixed rate) after having given notice
of its intention to borrow in accordance with Section 2.2 hereof (whether by
reason of the Borrower's election not to proceed or the non-fulfillment of any
of the conditions set forth in Article 3 hereof), or (b) any prepayment for any
reason of any LIBOR Advance or Offshore Advance in whole or in part (including a
prepayment pursuant to Section 9.5(b) hereof), the Borrower agrees to pay to any
such Lender, upon its demand, an amount sufficient to compensate such Lender for
all such losses and out-of-pocket expenses. Such Lender's good faith
determination of the amount of such losses or out-of-pocket expenses, calculated
in its usual fashion, absent manifest error, shall be binding and conclusive.
Such losses shall include, without limiting the generality of the foregoing,
lost profits and reasonable expenses incurred by such Lender in connection with
the re-employment of funds prepaid, repaid, converted or not borrowed, converted
or paid, as the case may be. Upon request of the Borrower, such Lender shall
provide a certificate setting forth the amount to be paid to it by the Borrower
hereunder and calculations therefor.

        Section 2.10 Manner of Payment.

        (a) Each payment (including prepayments) by the Borrower of the
principal of or interest on the Advances, fees, and any other amount owed under
this Agreement or any other Loan Paper shall be made not later than 1:00 p.m.
(Dallas, Texas time or, if the Approved Offshore Currency Payment Office is not
in Dallas, such time as is otherwise designated by the Administrative Agent) on
the date specified for payment under this Agreement to the Administrative Agent
at the Administrative Agent's office (or the Approved Offshore Currency Payment
Office, if payment is made in respect of an Offshore Advance, Offshore Bid Rate
Advance or Swingline Advance in an

                                       49
<PAGE>   55

Approved Offshore Currency), in immediately available funds. Except as provided
in Article 9 hereof, such payments shall be made in the Applicable Currency
borrowed.

        (b) If any payment under this Agreement or any other Loan Paper shall be
specified to be made upon a day which is not a Business Day, it shall be made on
the next succeeding day which is a Business Day, unless such Business Day falls
in another calendar month, in which case payment shall be made on the preceding
Business Day. Any extension of time shall in such case be included in computing
interest and fees, if any, in connection with such payment.

        (c) The Borrower agrees to pay principal, interest, fees and all other
amounts due under the Loan Papers without deduction for set-off or counterclaim
or any deduction whatsoever.

        (d) Notwithstanding anything to the contrary herein or in any Loan
Paper, to the extent the Borrower makes any voluntary prepayment, or voluntary
reduction of the Commitments under Sections 2.5 or 2.6 hereof, or any mandatory
prepayment, or mandatory reduction of any Commitments under Sections 2.5 or 2.6
hereof, or any repayment, then such reduction of Commitments, or such repayment
or prepayment shall be applied as follows:

               (i) So Long as there Exists No Payment Default or Event of
        Default.

                   (A) Repayments and Prepayments. So long as there exists no
               Default under Section 8.1(b) hereof or any Event of Default, all
               voluntary and mandatory repayments and prepayments not resulting
               from a reduction in a Commitment shall be applied first to the
               Swingline Advances until all the outstandings under the Swingline
               Loan have been paid in full, then as directed by the Borrower,
               and, in the absence of direction by the Borrower, shall be deemed
               to repay and prepay, in accordance with each Lender's Applicable
               Specified Percentage (as applicable): (1) the Bid Rate Advances
               until all Bid Rate Advances have been paid in full, then (2) the
               Offshore Advances until all the outstanding Offshore Advances
               have been repaid in full, then (3) the other Revolving Credit
               Advances until all the outstandings under the Revolving Credit
               Loan have been repaid in full, then (4) (only if the date such
               payment is received is prior to the Conversion Date (if any)),
               the Working Line Loan until all the outstandings under the
               Working Line Loan have been repaid in full, then (5) (only if the
               date such payment is received is after the Conversion Date (if
               any)), the Working Line Loan, until all outstandings under the
               Working Line loan have been repaid in full, and then (6) all
               remaining outstanding and unpaid Obligations. The above described
               repayments and prepayments shall be applied among various rate
               tranches within each Loan set forth above as directed by the
               Borrower, and, in the absence of direction by the Borrower, shall
               be deemed to repay and prepay (within each Loan as it is repaid
               as set forth above) Base Rate Advances first, then LIBOR
               Advances, then Bid Rate Advances and finally Offshore Advances.

                   (B) Reductions of the Commitments. So long as there exists no
               Default under Section 8.1(b) hereof or any Event of Default, all
               voluntary and mandatory

                                       50
<PAGE>   56

               reductions in the Commitments shall be applied as directed by the
               Borrower, and in the absence of direction by the Borrower, shall
               be deemed to reduce, respectively, (1) the Revolving Credit
               Commitment until it has been reduced to zero, then (2) if prior
               to the Conversion Date (if any), the Working Line Commitment
               until the Working Line Commitment has been reduced to zero.
               Within each reduction set forth above, the Swingline Commitment
               and the Offshore Commitment shall be simultaneously reduced with
               the Revolving Credit Commitment until the Swingline Commitment
               and the Offshore Commitment have been reduced to zero.

               (ii) During the Existence of a Payment Default or Event of
        Default.

                   (A) Repayments and Prepayments. So long as there exists a
               Default under Section 8.1(b) hereof or any Event of Default, all
               mandatory and voluntary prepayments and repayments shall be
               applied to first to expenses of the Administrative Agent incurred
               in connection with the Loans, then to Advances outstanding under
               the Swingline Loan, and then to Advances (including all Bid Rate
               Advances) outstanding under each of the Revolving Credit Loan and
               the Working Line Loan, pro rata to each Lender, until all the
               Advances outstanding under each of the Revolving Credit Loan and
               the Working Line Loan have been repaid in full, and then to all
               remaining outstanding Obligations.

                   (B) Reductions in the Commitments. So long as there exists a
               Default under Section 8.1(b) hereof or any Event of Default, all
               mandatory and voluntary reductions in the Commitment shall be
               applied to the Revolving Credit Commitment and, if prior to the
               Conversion Date (if any), to the Working Line Commitment, pro
               rata.

                   (C) Pro Rata. Pro rata to each Lender means based on the
               percentage that the outstanding Advances and Reimbursement
               Obligations owed to such Lender hereunder bears to the aggregate
               Advances and Reimbursement Obligations owed to all Lenders
               hereunder, after the payment of the Administrative Agent's
               expenses incurred in connection with the Loans.

        (e) At all times prior to the Lenders making a Mandatory Revolver
Advance with respect to any Swingline Advance, the Administrative Agent shall
distribute all payments in respect of the Swingline Advances to the Swingline
Bank. At such time, if any, that the Lenders make a Mandatory Revolver Advance
which repays a Swingline Advance, the Administrative Agent shall distribute all
payments in respect of the Swingline Advances to the Lenders in accordance with
their respective Revolving Credit Specified Percentages.

        (f) The Administrative Agent shall not be liable to any party to this
Agreement in any way whatsoever for any delay, or the consequences of any delay,
other than as a result of the gross negligence or willful misconduct of the
Administrative Agent, in the crediting to any account of any amount denominated
in an Approved Offshore Currency.

                                       51
<PAGE>   57

        (g) Any Lender may request that portion of the Loans made by it be
evidenced by a promissory note. In such event, the Borrower shall (at its
expense) prepare, execute and deliver to such Lender a promissory note payable
to the order of such Lender, in the form of Exhibit A, Exhibit B, Exhibit C,
Exhibit D or Exhibit E, as applicable. Thereafter, the portion of the Loans
evidenced by such promissory note, and interest thereon, shall at all times
(including after assignment pursuant to Section 11.6. hereof) be represented by
one or more promissory notes in such form payable to the order of the payee
named therein.

        Section 2.11 Lending Offices. Each Lender's initial Lending Office for
Base Rate Advances and LIBOR Advances, and its Offshore Lending Office, is set
forth opposite its name on Schedule 1.2 hereto. Each Lender shall have the right
at any time and from time to time to designate a different office of itself or
of any Bank Affiliate as one of such Lender's Lending Offices, and to transfer
any outstanding LIBOR Advance, Offshore Advance and other Advances to such
Lending Office. No such designation or transfer shall result in any liability on
the part of the Borrower for increased costs or expenses resulting solely from
such designation or transfer (except any such transfer which is made by a Lender
pursuant to Section 9.3 or 9.5 hereof, or otherwise for the purpose of complying
with Applicable Law). Increased costs for expenses resulting from a change in
law occurring subsequent to any such designation or transfer shall be deemed not
to result solely from such designation or transfer.

        Section 2.12 Sharing of Payments. Any Lender obtaining a payment
(whether voluntary or involuntary, due to the exercise of any right of set-off,
or otherwise) on account of any of its Advances or Reimbursement Obligations in
excess of its Applicable Specified Percentage of all payments made by the
Borrower with respect to such Advances or Reimbursement Obligations shall
purchase from each other Lender such participation in such Advances or
Reimbursement Obligations made by such other Lender as shall be necessary to
cause such purchasing Lender to share the excess payment pro rata according to
their Applicable Specified Percentages with each other Lender which is not in
default of its obligations hereunder with respect to such Advance or
Reimbursement Obligations; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender, the purchase
shall be rescinded and the purchase price restored to the extent of such
recovery, but without interest; and provided further, that after an Event of
Default, such payments will be shared pro rata among all Lenders based on the
total amount of all Advances or Reimbursement Obligations outstanding. The
Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section, to the fullest extent permitted by law, may
exercise all its rights of payment (including the right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.

        Section 2.13 Calculation of LIBOR Rate, Offshore Dollar Rate and
Approved Offshore Currency Rate. The provisions of this Agreement relating to
calculation of the LIBOR Rate are included only for the purpose of determining
the rate of interest or other amounts to be paid hereunder that are based upon
such rate, it being understood that each Lender shall be entitled to fund and
maintain its funding of all or any part of a LIBOR Advance as it sees fit. The
provisions

                                       52
<PAGE>   58
of this Agreement relating to calculation of the Offshore Dollar Rate and
Approved Offshore Currency Rate are included only for the purpose of determining
the rate of interest or other amounts to be paid hereunder that are based upon
such rate, it being understood that each Lender shall be entitled to fund and
maintain its funding of all or any part of an Offshore Advance as such Lender
determines in its sole discretion.

        Section 2.14 Booking Loans. Any Lender may make, carry or transfer
Advances at, to or for the account of any of its branch offices or the office of
any Bank Affiliate.

        Section 2.15 Taxes.

        (a) Any and all payments by the Borrower hereunder shall be made, in
accordance with Section 2.10 hereof, free and clear of and without deduction for
any and all present or future taxes, levies, imposts, deductions, charges and
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Lender and the Administrative Agent, taxes imposed on its overall net
income, gross receipts, and capital and franchise taxes imposed on it (including
interest and penalties imposed thereon), by the jurisdiction under the laws of
which such Lender or the Administrative Agent (as the case may be) is organized
or any political subdivision thereof (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as "Taxes"). If the Borrower shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder to any Lender or the
Administrative Agent, (x) the sum payable shall be increased as may be necessary
so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.15) such Lender or the
Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (y) the Borrower shall
make such deductions and (z) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with Applicable
Law.

        (b) In addition, the Borrower agrees to pay any and all stamp and
documentary taxes and any and all other excise and property taxes, charges and
similar levies that arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement or any
other Loan Paper (hereinafter referred to as "Other Taxes").

        (c) The Borrower will indemnify each Lender and the Administrative Agent
for the full amount of Taxes and Other Taxes (including, without limitation, any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.15) paid by such Lender or the Administrative Agent (as the case may
be) and all liabilities (including penalties, additions to tax, interest and
reasonable expenses) arising therefrom or with respect thereto whether or not
such Taxes or Other Taxes were correctly or legally asserted, other than
penalties, additions to tax, interest and expenses arising as a result of gross
negligence on the part of such Lender or the Administrative Agent; provided,
however, that the Borrower shall have no obligation to indemnify such Lender or
the Administrative Agent (i) unless notice has been given by such Lender or the
Administrative Agent, as applicable, in a time sufficient to afford the
Borrower, in good faith, a reasonable opportunity to contest such payment by
such Lender or the Administrative Agent, provided that such

                                       53
<PAGE>   59

opportunity to contest exists under Applicable Law, and (ii) until such Lender
or the Administrative Agent shall have delivered to the Borrower a certificate
setting forth in reasonable detail the basis of the Borrower's obligation to
indemnify such Lender or the Administrative Agent pursuant to this Section 2.15.
This indemnification shall be made within 30 days from the date such Lender or
the Administrative Agent (as the case may be) makes written demand therefor.

        (d) Within 30 days after the date of any payment of Taxes, the Borrower
will furnish to the Administrative Agent the original or a certified copy of a
receipt evidencing payment thereof. If no Taxes are payable in respect of any
payment hereunder, the Borrower will furnish to the Administrative Agent a
certificate from each appropriate taxing authority, or an opinion of counsel
acceptable to the Administrative Agent, in either case stating that such payment
is exempt from or not subject to Taxes, provided, however, that such certificate
or opinion need only be given if: (i) the Borrower makes any payment from any
account located outside the United States, or (ii) the payment is made by a
payor that is not a United States Person. For purposes of this Section 2.15 the
terms "United States" and "United States Person" shall have the meanings set
forth in Section 7701 of the Code.

        (e) Each Lender which is not a United States Person hereby agrees that:

               (i) it shall, no later than the Closing Date (or, in the case of
        a Lender which becomes a party hereto pursuant to Section 11.6 after the
        Closing Date, the date upon which such Lender becomes a party hereto)
        deliver to the Borrower through the Administrative Agent, with a copy to
        the Administrative Agent:

               (A)    if any lending office is located in the United States of
                      America, two (2) accurate and complete signed originals of
                      Internal Revenue Service Form 4224 or any successor
                      thereto ("Form 4224"),

               (B)    if any lending office is located outside the United States
                      of America, two (2) accurate and complete signed originals
                      of Internal Revenue Service Form 1001 or any successor
                      thereto ("Form 1001").

        in each case indicating that such Lender is on the date of delivery
        thereof entitled to receive payments of principal, interest and fees for
        the account of such lending office or lending offices under this
        Agreement free from withholding of United States Federal income tax;

               (ii) if at any time such Lender changes its lending office or
        lending offices or selects an additional lending office it shall, at the
        same time or reasonably promptly thereafter but only to the extent the
        forms previously delivered by it hereunder are no longer effective,
        deliver to the Borrower through the Administrative Agent, with a copy to
        the Administrative Agent, in replacement for the forms previously
        delivered by it hereunder:

               (A)    if such changed or additional lending office is located in
                      the United States of America, two (2) accurate and
                      complete signed originals of Form 4224; or

                                       54
<PAGE>   60

               (B)    otherwise, two (2) accurate and complete signed originals
                      of Form 1001,

        in each case indicating that such Lender is on the date of delivery
        thereof entitled to receive payments of principal, interest and fees for
        the account of such changed or additional lending office under this
        Agreement free from withholding of United States Federal income tax;

               (iii) it shall, before or promptly after the occurrence of any
        event (including the passing of time but excluding any event mentioned
        in clause (ii) above) requiring a change in the most recent Form 4224 or
        Form 1001 previously delivered by such Lender and if the delivery of the
        same be lawful, deliver to the Borrower through the Administrative Agent
        with a copy to the Administrative Agent, two (2) accurate and complete
        original signed copies of Form 4224 or Form 1001 in replacement for the
        forms previously delivered by such Lender; and

               (iv) it shall, promptly upon the request of the Borrower to that
        effect, deliver to the Borrower such other forms or similar
        documentation as may be required from time to time by any applicable
        law, treaty, rule or regulation in order to establish such Lender's tax
        status for withholding purposes.

        (f) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 2.15 shall survive the payment in full of principal and interest
hereunder.

        (g) Any Lender claiming any additional amounts payable pursuant to this
Section 2.15 shall use its reasonable best efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
lending office, if the making of such a change would avoid the need for, or
reduce the amount of, any such additional amounts which may thereafter accrue
and would not, in the sole judgment of such Lender, be otherwise disadvantageous
to such Lender.

        (h) Each Lender (and the Administrative Agent with respect to payments
to the Administrative Agent for its own account) agrees that (i) it will take
all reasonable actions by all usual means to maintain all exemptions, if any,
available to it from United States withholding taxes (whether available by
treaty, existing administrative waiver, by virtue of the location of any
Lender's lending office) and (ii) otherwise cooperate with the Borrower to
minimize amounts payable by the Borrower under this Section 2.15; provided,
however, the Lenders and the Administrative Agent shall not be obligated by
reason of this Section 2.15(h) to contest the payment of any Taxes or Other
Taxes or to disclose any information regarding its tax affairs or tax
computations or reorder its tax or other affairs or tax or other planning.

        Section 2.16 Letters of Credit.

                                       55
<PAGE>   61

        (a) The Letter of Credit Facility. The Borrower may request the Primary
Issuing Bank, on the terms and conditions hereinafter set forth, to issue, and
the Primary Issuing Bank shall, if so requested, issue stand-by letters of
credit (each a "Primary Letter of Credit", which together with any Acquired
Letters of Credit, are herein collectively referred to as the "Letters of
Credit", or individually as a "Letter of Credit") for the account of the
Borrower from time to time on any Business Day from the Closing Date until the
Maturity Date in an aggregate maximum amount (assuming compliance with all
conditions to issuance) not to exceed at any time outstanding the lesser of (i)
the Dollar Equivalent of $300,000,000 and (ii) the difference of (A) the
Revolving Credit Commitment minus (B) the Dollar Equivalent of the sum of
aggregate principal amount of Revolving Credit Advances then outstanding plus
the outstanding principal face amount of all Acquired Letters of Credit (the
"Letter of Credit Facility"). Any Letter of Credit can be issued in a face
amount denominated in either Dollars or an Approved Offshore Currency. No
Secondary Issuing Bank may issue any Letter of Credit except Acquired Letters of
Credit issued prior to the dates of the AMFM Acquisition and the SFX
Acquisition, respectively. No Letter of Credit shall have an expiration date
(including all rights of renewal) later than the earlier of (i) the Maturity
Date or (ii) one year after the date of issuance thereof. Immediately upon the
issuance of each Primary Letter of Credit, immediately upon the consummation of
the SFX Acquisition, and immediately upon the consummation of the AMFM
Acquisition (and the AMFM Entities and the SFX Entities becoming Subsidiaries of
the Borrower), as applicable, the Primary Issuing Bank and the Secondary Issuing
Banks shall be deemed to have sold and transferred to each Lender, and each
Lender shall be deemed to have purchased and received from the Primary Issuing
Bank and the Secondary Issuing Banks, in each case irrevocably and without any
further action by any party, an undivided interest and participation in each
such Primary Letter of Credit and/or Acquired Letter of Credit, each drawing
thereunder and the obligations of the Borrower and/or its Subsidiaries under
this Agreement and any Letter of Credit Agreement in respect thereof in an
amount equal to the product of (i) such Lender's Revolving Credit Specified
Percentage times (ii) the Dollar Equivalent of the maximum amount available to
be drawn under such Letter of Credit (assuming compliance with all conditions to
drawing). Within the limits of the Letter of Credit Facility, and subject to the
limits referred to above, the Borrower may (A) request the issuance of Primary
Letters of Credit under this Section 2.16(a), (B) repay any Advances resulting
from drawings under Letters of Credit pursuant to Section 2.16(c) hereof, (C)
request that any Primary Letter of Credit or Acquired Letter of Credit be
extended, renewed, amended or replaced (which such action with respect to
Acquired Letters of Credit shall be taken by the Secondary Issuing Banks and
shall be permitted only so long as the principal face amount of each such
Acquired Letter of Credit does not increase) and (D) request the issuance of
additional Primary Letters of Credit under this Section 2.16(a). During the term
of this Agreement, provided that no Default or Event of Default then exists and
subject to the same conditions for the issuance of a Primary Letter of Credit
set forth in Section 3.2 hereof, (I) the Primary Issuing Bank may at the
Borrower's option, automatically renew any expiring Primary Letters of Credit
for a period of time not to exceed the earlier of (x) five (5) days prior to the
Maturity Date or (y) one year after the date of renewal thereof and (II) the
Secondary Issuing Banks may at the Borrower's option, automatically renew any
expiring Acquired Letters of Credit for a period of time not to exceed the
earlier of (x) five (5) days prior to the Maturity Date or (y) one year after
the date of renewal thereof.

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<PAGE>   62

        (b) Request for Issuance. Each Primary Letter of Credit shall be issued
upon notice, given not later than 11:00 a.m. (Dallas time) on the third Business
Day prior to the date of the proposed issuance of such Primary Letter of Credit,
by the Borrower to the Primary Issuing Bank, which shall give to the
Administrative Agent and each Lender prompt notice thereof by telecopier. Each
Primary Letter of Credit shall be issued upon notice given in accordance with
the terms of any separate agreement between the Borrower and the Primary Issuing
Bank in form and substance reasonably satisfactory to the Borrower and the
Primary Issuing Bank providing for the issuance of Primary Letters of Credit
pursuant to this Agreement and containing terms and conditions not inconsistent
with this Agreement (together with all agreements referred to in the following
sentence, "Letter of Credit Agreements"), provided that if any such terms and
conditions are inconsistent with this Agreement, this Agreement shall control.
Each Acquired Letter of Credit may be subject to any separate agreement between
the Borrower and a Secondary Issuing Bank providing for the original issuance
of, and renewals and extensions of, Acquired Letters of Credit, provided that if
any such terms and conditions are inconsistent with this Agreement, this
Agreement shall control. Each such notice of issuance of a Primary Letter of
Credit (a "Notice of Issuance") shall be by telecopier, specifying therein, the
requested (A) date of such issuance (which shall be a Business Day), (B) maximum
amount and currency of such Primary Letter of Credit, (C) expiration date of
such Primary Letter of Credit, (D) name and address of the beneficiary of such
Primary Letter of Credit, (E) form of such Primary Letter of Credit and (F) such
other information as shall be required pursuant to the relevant Letter of Credit
Agreement. If the requested terms of such Primary Letter of Credit are
acceptable to the Primary Issuing Bank in its reasonable discretion, the Primary
Issuing Bank shall, subject to this Section 2.16(b), upon fulfillment of the
applicable conditions set forth in Article 3 hereof, make such Primary Letter of
Credit available to the Borrower at its office referred to in Section 11.1 or as
otherwise agreed with the Borrower in connection with such issuance.

        (c) Drawing and Reimbursement. The payment by any of the Issuing Banks
of a draft drawn under any Letter of Credit shall constitute for all purposes of
this Agreement the making by such Issuing Bank of a Revolver Advance in Dollars
in the principal amount equal to the Dollar Equivalent of the amount of such
payment, which shall bear interest at the applicable Base Rate Basis, in the
amount of such draft. For purposes of the preceding sentence, each determination
of Dollar Equivalent shall be made as of the date of the respective Advance
proceeds of which were used to pay a draft. The making of such Revolver Advance
shall be automatic and without any requirement of compliance with the conditions
of Articles 2 and 3 hereof (including, without limitation, any provision of
Section 2.1(a)(i) hereof limiting a Lender's obligation to make Revolving Credit
Advances in excess of its Revolving Credit Specified Percentage of the Revolving
Credit Commitment). In the event that a drawing under any Letter of Credit is
not reimbursed by the Borrower by 11:00 a.m. (Dallas time) on the first Business
Day after such drawing, such Issuing Bank shall promptly notify Administrative
Agent and each other Revolving Credit Lender. Each such Revolving Credit Lender
shall, on the first Business Day following such notification, make a Revolver
Advance, which shall bear interest at the applicable Base Rate Basis, and shall
be used to repay the applicable portion of such Issuing Bank's Revolver Advance
with respect to such Letter of Credit, in an amount equal to the amount of its
participation in such drawing for application to reimburse such Issuing Bank
(but without any requirement for compliance with the applicable conditions set
forth in Article 3 hereof) and shall make available to the Administrative Agent
for the

                                       57
<PAGE>   63

account of such Issuing Bank, by deposit at the Administrative Agent's office,
in same day funds, the amount of such Revolver Advance. In the event that any
Lender fails to make available to the Administrative Agent for the account of
such Issuing Bank the amount of such Revolver Advance, such Issuing Bank shall
be entitled to recover such amount on demand from such Lender together with
interest thereon at a rate per annum equal to the lesser of (i) the Highest
Lawful Rate or (ii) the Federal Funds Rate.

        (d) Increased Costs. If any change in any law or regulation or in the
interpretation thereof by any court or administrative or governmental authority
charged with the administration thereof shall either (i) impose, modify or deem
applicable any reserve, special deposit or similar requirement against letters
of credit or guarantees issued by, or assets held by, or deposits in or for the
account of, any of the Issuing Banks or any Lender or (ii) impose on any of the
Issuing Banks or any Lender any other condition regarding this Agreement or such
Lender or any Letter of Credit, and the result of any event referred to in the
preceding clause (i) or (ii) shall be, in the reasonable opinion of any of the
Issuing Banks or any Lender, to increase the cost to any of the Issuing Banks of
issuing or maintaining any Letter of Credit or to any Lender of purchasing any
participation therein or making any Advance pursuant to Section 2.16(c)
("Increased Letter of Credit Costs"), then, upon demand by such Issuing Bank(s)
or such Lender, the Borrower shall, subject to Section 11.9 hereof, pay to such
Issuing Bank(s) or such Lender, from time to time as specified by such Issuing
Bank(s) or such Lender, additional amounts that shall be sufficient to
compensate such Issuing Bank(s) or such Lender for such Increased Letter of
Credit Costs. Notwithstanding the foregoing, any demand for Increased Letter of
Credit Costs shall not include any Letter of Credit costs with respect to any
period more than 180 days prior to the date that any such Issuing Bank or any
Lender gives notice to the Borrower of such Increased Letter of Credit Costs
unless the effective date of the condition which results in the right to
received Increased Letter of Credit Costs is retroactive (the "Increased Letter
of Credit Costs Retroactive Effective Date"). If any Increased Letter of Credit
Costs has an Increased Costs Letter of Credit Retroactive Effective Date and any
such Issuing Bank or any Lender demands compensation within 180 days after the
date setting the Increased Letter of Credit Costs Effective Date (the "Increased
Letter of Credit Costs Set Date"), such Issuing Bank or such Lender, as
appropriate, shall have the right to receive such Increased Letter of Credit
Costs from the Increased Letter of Credit Retroactive Effective Date. If such
Issuing Bank or a Lender does not demand such Increased Letter of Credit Costs
within 180 days after the Increased Letter of Credit Costs Set Date, such
Issuing Bank or such Lender, as appropriate, may not receive payment of
Increased Letter of Credit Costs with respect to any period more than 180 days
prior to such demand. A certificate as to the amount of such increased cost,
submitted to the Borrower by such Issuing Bank or such Lender, shall include in
reasonable detail the basis for the demand for additional compensation and shall
be conclusive and binding for all purposes, absent demonstrable error. The
obligations of the Borrower under this Section 2.16(d) shall survive termination
of this Agreement. Any Issuing Bank or any Lender claiming any additional
compensation under this Section 2.16(d) shall use reasonable efforts (consistent
with legal and regulatory restrictions) to reduce or eliminate any such
additional compensation which may thereafter accrue and which efforts would not,
in the sole discretion of such Issuing Bank or such Lender, be otherwise
disadvantageous.

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<PAGE>   64

        (e) Obligations Absolute. The obligations of the Borrower under this
Agreement with respect to any Letter of Credit, any Letter of Credit Agreement
and any other agreement or instrument relating to any Letter of Credit or any
Advance pursuant to Section 2.16(c) shall be unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement, such
Letter of Credit Agreement and such other agreement or instrument under all
circumstances, including, without limitation, the following circumstances:

               (i) any lack of validity or enforceability of this Agreement, any
        other Loan Paper, any Letter of Credit Agreement, any Letter of Credit
        or any other agreement or instrument relating thereto (collectively, the
        "L/C Related Documents");

               (ii) any change in the time, manner or place of payment of, or in
        any other term of, all or any of the Obligations of the Borrower in
        respect of the Letters of Credit or any Revolving Credit Advance
        pursuant to Section 2.16(c) or any other amendment or waiver of or any
        consent to departure from all or any of the L/C Related Documents;

               (iii) the existence of any claim, set-off, defense or other right
        that the Borrower may have at any time against any beneficiary or any
        transferee of a Letter of Credit (or any Persons for whom any such
        beneficiary or any such transferee may be acting), any Issuing Bank, any
        Lender or any other Person, whether in connection with this Agreement,
        the transactions contemplated hereby or by the L/C Related Documents or
        any unrelated transaction;

               (iv) any statement or any other document presented under a Letter
        of Credit proving to be forged, fraudulent, invalid or insufficient in
        any respect or any statement therein being untrue or inaccurate in any
        respect, except to the extent that any payment by any Issuing Bank
        against any such statement or other document shall be as a result of
        such Issuing Bank's gross negligence or willful misconduct;

               (v) payment by any Issuing Bank under a Letter of Credit against
        presentation of a draft or certificate that does not comply with the
        terms of the Letter of Credit, except for any payment made upon such
        Issuing Bank's gross negligence or willful misconduct;

               (vi) any exchange, release or non-perfection of any Collateral,
        or any release or amendment or waiver of or consent to departure from
        any Guaranty, for all or any of the Obligations of the Borrower in
        respect of the Letters of Credit or any Revolving Credit Advance
        pursuant to Section 2.16(c) hereof; or

               (vii) any other circumstance or happening whatsoever, whether or
        not similar to any of the foregoing, including, without limitation, any
        other circumstance that might otherwise constitute a defense available
        to, or a discharge of, the Borrower or a guarantor, other than the
        Issuing's Bank gross negligence or wilful misconduct.

        (f) Compensation for Letters of Credit.

                                       59
<PAGE>   65

               (i) Credit Fees. Subject to Section 11.9 hereof, the Borrower
        shall pay to the Administrative Agent for the account of each Lender a
        credit fee (which shall be payable quarterly in arrears on each
        Quarterly Date and on the Maturity Date) on the average daily amount
        available for drawing under all outstanding Letters of Credit (computed,
        subject to Section 11.9 hereof, on the basis of a 365-day year for the
        actual number of days elapsed) at a per annum rate equal to the
        Applicable Margin for LIBOR Advances determined as set forth in
        subsection (ii) below.

               (ii) Adjustment of Credit Fee. The credit fee payable in respect
        of the Letters of Credit shall be subject to reduction or increase, as
        applicable and as set forth in the table in the definition of
        "Applicable Margin". Any such increase or reduction in such fee shall be
        effective as specified in the definition of "Applicable Margin".

               (iii) Issuance Fee. Subject to Section 11.9 hereof, the Borrower
        shall pay to (A) the Administrative Agent, for the sole account of the
        Primary Issuing Bank, an issuance fee of $500 on the date of issuance,
        amendment, renewal or extension of each Primary Letter of Credit and (B)
        the Secondary Issuing Bank taking such action, for the sole account of
        the Secondary Issuing Bank taking such action, a renewal fee of $500 on
        the date of any amendment, renewal or extension of any Acquired Letter
        of Credit (so long as in each case the principal amount of such Acquired
        Letter of Credit does not increase).

        (g) L/C Cash Collateral Account.

               (i) Upon the occurrence of an Event of Default and demand by the
        Administrative Agent pursuant to Section 8.2(c) hereof, other than an
        Event of Default pursuant to Section 8.1(f) or 8.1(g) hereof upon which
        event the referenced sums will become immediately due and payable
        without further action by the Administrative Agent, the Borrower will
        promptly pay to the Administrative Agent in immediately available funds
        an amount equal to 100% of the Dollar Equivalent of the maximum amount
        then available to be drawn under the Letters of Credit then outstanding.
        Any amounts so received by the Administrative Agent shall be deposited
        by the Administrative Agent in a deposit account maintained by the
        Primary Issuing Bank (the "L/C Cash Collateral Account").

               (ii) As security for the payment of all Reimbursement Obligations
        and for any other Obligations, the Borrower hereby grants, conveys,
        assigns, pledges, sets over and transfers to the Administrative Agent
        and Administrative Agent accepts (for the benefit of the Issuing Banks
        and Lenders), and creates in the Administrative Agent's favor (for the
        benefit of the Issuing Banks and Lenders) a Lien in, all money,
        instruments and securities at any time held in or acquired in connection
        with the L/C Cash Collateral Account, together with all proceeds
        thereof. The L/C Cash Collateral Account shall be under the sole
        dominion and control of the Administrative Agent and the Borrower shall
        have no right to withdraw or to cause the Administrative Agent to
        withdraw any funds deposited in the L/C Cash Collateral Account except
        as otherwise provided in Section 2.16(g)(iii) below. At any time

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<PAGE>   66

        and from time to time, upon the Administrative Agent's request, the
        Borrower promptly shall execute and deliver any and all such further
        instruments and documents, including UCC financing statements, as may be
        necessary, appropriate or desirable in the Administrative Agent's
        judgment to obtain the full benefits (including perfection and priority)
        of the security interest created or intended to be created by this
        paragraph (ii) and of the rights and powers herein granted. The Borrower
        shall not create or suffer to exist any Lien on any amounts or
        investments held in the L/C Cash Collateral Account other than the Lien
        granted under this paragraph (ii) and Liens arising by operation of Law
        and not by contract which secure amounts not yet due and payable.

               (iii) The Administrative Agent shall (A) apply any funds in the
        L/C Cash Collateral Account on account of Reimbursement Obligations when
        the same become due and payable if and to the extent that the Borrower
        shall fail directly to pay such Reimbursement Obligations, (B) after the
        Maturity Date, apply any proceeds remaining in the L/C Cash Collateral
        Account first to pay any unpaid Obligations then outstanding hereunder
        and then to refund any remaining amount to the Borrower, and (C)
        provided no Default or Event of Default shall be in existence, return
        any funds in the L/C Cash Collateral Account to the Borrower.

               (iv) The Borrower, no more than once in any calendar month, may
        direct the Administrative Agent to invest the funds held in the L/C Cash
        Collateral Account (so long as the aggregate amount of such funds
        exceeds any relevant minimum investment requirement) in (A) direct
        obligations of the United States or any agency thereof, or obligations
        guaranteed by the United States or any agency thereof and (B) one or
        more other types of investments permitted by the Facility Determining
        Lenders, in each case with such maturities as the Borrower, with the
        consent of the Facility Determining Lenders, may specify, pending
        application of such funds on account of Reimbursement Obligations or on
        account of other Obligations, as the case may be. In the absence of any
        such direction from the Borrower, the Administrative Agent shall invest
        the funds held in the L/C Cash Collateral Account (so long as the
        aggregate amount of such funds exceeds any relevant minimum investment
        requirement) in one or more types of investments with the consent of the
        Facility Determining Lenders with such maturities as the Borrower, with
        the consent of the Facility Determining Lenders, may specify, pending
        application of such funds on account of Reimbursement Obligations or on
        account of other Obligations, as the case may be. All such investments
        shall be made in the Administrative Agent's name for the account of the
        Lenders. The Borrower recognizes that any losses or taxes with respect
        to such investments shall be borne solely by the Borrower, and the
        Borrower agrees to hold the Administrative Agent and the Lenders
        harmless from any and all such losses and taxes. Administrative Agent
        may liquidate any investment held in the L/C Cash Collateral Account in
        order to apply the proceeds of such investment on account of the
        Reimbursement Obligations (or on account of any other Obligation then
        due and payable, as the case may be) without regard to whether such
        investment has matured and without liability for any penalty or other
        fee incurred (with respect to which the Borrower hereby agrees to
        reimburse the Administrative Agent) as a result of such application.

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               (v) The Borrower shall pay to the Administrative Agent the fees
        customarily charged by the Primary Issuing Bank with respect to the
        maintenance of accounts similar to the L/C Cash Collateral Account in an
        amount not to exceed $1,000 in aggregate per calendar year.

        (h) Acquired Letters of Credit. The Borrower, the Administrative Agent,
the Syndication Agent and each Lender specifically acknowledge and agree that,
immediately upon consummation of the AMFM Acquisition and/or the SFX
Acquisition, each applicable Acquired Letter of Credit shall become part of, and
subject to, this Agreement and the Loan Papers, and each of the Secondary
Issuing Banks shall be entitled to the rights, benefits and protections set
forth herein and in the Loan Papers, all without any further action by the
Borrower, the Administrative Agent, any Lender or any Issuing Bank.
Notwithstanding any document or agreement to the contrary, the Borrower
specifically agrees and assumes all liability related to each of the Acquired
Letters of Credit, regardless of the original obligor with respect to each such
Acquired Letter of Credit. Each Lender agrees, notwithstanding any document or
agreement to the contrary, that each such Acquired Letter of Credit shall be
subject to the terms and conditions of this Agreement, and each Issuing Bank
shall be entitled to the rights and benefits available under this Agreement and
the Loan Papers. Each Secondary Issuing Bank agrees to provide the
Administrative Agent with a monthly certificate setting forth in detail all
activity related to each Acquired Letter of Credit issued by such Secondary
Issuing Bank, in form reasonably agreed to by the Administrative Agent and each
Secondary Issuing Bank, such certificate to be delivered to the Administrative
Agent within 10 Business Days after the beginning of each month during the term
of this Agreement so long as any Acquired Letter of Credit is outstanding.

        Section 2.17. Extension Option and Conversion Option Relating to the
Working Line Loan.

               (a) Extension Option. On each Option Date (so long as the
        Borrower has not elected the Conversion Option), the Borrower, with the
        prior written consent of the Facility Determining Lenders and so long as
        there exists no Default, may elect to extend the maturity of the Working
        Line Loan for an additional 364 day period until the Extension Final
        Maturity. Such election must be made no sooner than 60 days prior to the
        applicable Option Date and no later than 30 days (or such lesser period
        as agreed to by the Administrative Agent and the Lenders agreeing to
        extend) prior to the applicable Option Date by written notice in
        accordance with the terms of Section 11.1 hereof to each Lender selected
        by the Borrower and the Administrative Agent, of its request to extend
        the final maturity of the Working Line Loan. Each Working Line Lender
        shall, no later 10 Business Days after receipt of such notice (or such
        lesser time period agreed to by the Borrower and the Administrative
        Agent); provided that in no case shall such response occur more than 45
        calendar days prior to the applicable Option Date, give written notice
        to the Borrower and the Administrative Agent of its approval or
        disapproval of such extension. Any Lender failing to give such notice
        shall be deemed to have rejected such extension; and, upon the Option
        Date, its Working Line Specified Percentage shall be zero and such
        Lender shall not be participating in the Working Line Loan thereafter.
        Notwithstanding anything herein to

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<PAGE>   68

        the contrary, no Lender shall be obligated to consent to such extension.
        If the Borrower fails to receive the consent of Working Line Lenders
        having Working Line Specified Percentages totaling 100%, then, if
        Facility Determining Lenders have consented to such extension (i) only
        those consenting Working Line Lenders will have Working Line Specified
        Percentages in excess of zero, (ii) the Working Line Commitment shall be
        reduced by a dollar amount equal to the product of the non-consenting
        Lenders' Working Line Specified Percentages times the Working Line
        Commitment in effect on the day before the Option Date or the Borrower
        and the Administrative Agent may agree to add new lenders or consenting
        Lenders acceptable to the Administrative Agent to purchase from each
        non-extending Lender its rights, duties and obligations under this
        Agreement and the Loan Papers in accordance with Section 11.6 hereof,
        (iii) the Administrative Agent will notify each (A) Working Line Lender
        of its reallocated Working Line Specified Percentage and the new Working
        Line Commitment and (B) each Lender of the reallocated Total Specified
        Percentages (if any), (iv) the Borrower will pay all costs incurred as a
        result of any such reallocation of Working Line Specified Percentages in
        accordance with the terms of Section 2.9 hereof, (v) the Borrower shall
        repay in full all portions of the Obligations representing such
        non-consenting Lenders' Working Line Specified Percentages of all
        outstanding Working Line Advances to such nonconsenting Lenders, (vi)
        the Borrower shall, at the request of each Working Line Lender or new
        Working Line Lender in accordance with the terms of Section 2.10(g)
        hereof, execute and deliver new promissory notes to each extending
        Working Line Lender or new Working Line Lender in the form required by
        the Administrative Agent and (vii) subject to satisfaction of each of
        the foregoing requirements, the Working Line Loan final maturity shall
        be automatically extended on the Option Date to the Extension Final
        Maturity. If the Borrower receives the consent of Working Line Lenders
        having Working Line Specified Percentages totaling 100%, then the
        Working Line Loan final maturity shall be automatically extended on the
        Option Date to the Extension Final Maturity, and each Working Line
        Lender will retain its Working Line Specified Percentage and the Working
        Line Commitment shall remain the same.

               (b) Conversion Option. On the Option Date, or, if the Borrower
        and the Lenders have agreed to extend the Working Line Loan until the
        Extension Final Maturity, then on the Extension Final Maturity, the
        Borrower, so long as there exists no Default or Event of Default on such
        date of conversion, shall have the option (which shall not require the
        consent of any Lender) to convert the Working Line Loan to a term loan
        (the "Term Loan"). Such election must be made no sooner than 60 days
        prior to the Option Date or Extension Final Maturity, as applicable, and
        no later than 30 days prior to the Option Date or Extension Final
        Maturity, as applicable, (or such shorter period as agreed to by the
        Administrative Agent), by written notice in accordance with the terms of
        Section 11.01 hereof to the Administrative Agent of the election of such
        conversion. Prior to the Conversion Date, to the extent requested by
        each Working Line Lender in accordance with the terms of Section 2.10(g)
        hereof, the Borrower shall execute and deliver new promissory notes to
        each Working Line Lender in the form required by the Administrative
        Agent. Upon such notice (and receipt by the Working Line Lenders of the
        new promissory notes (if any)), the Working Line Loan

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<PAGE>   69

        shall automatically convert to a Term Loan on the Option Date or the
        Extension Final Maturity, as applicable.

        Section 2.18. Uncommitted Increase of the Revolving Credit Commitment.
At any time, and subject to the terms set forth below, from time to time, upon
request by the Borrower to Administrative Agent and any other existing Lender
selected by the Borrower and the Administrative Agent, the Revolving Credit
Commitment shall increase by up to $2,000,000,000 (to a maximum of
$3,500,000,000) in the manner set forth in (a) below, so long as the conditions
set forth in (b) and (c) below have been satisfied:

               (a) (i) Each increase in the Revolving Credit Commitment may be
               effected by the Administrative Agent and the Lenders and other
               lenders agreeing to participate in such increase (the
               "Participating Lenders"), provided that, the Borrower shall not
               be entitled to increase the Revolving Credit Commitment more than
               two times during the term of this Agreement,

                   (ii) Each potential Participating Lender specified by the
               Borrower shall have received not less than ten Business Days'
               prior written notice from the Borrower requesting such increase
               in the Revolving Credit Commitment. Each Participating Lender
               shall commit to an amount not less than $5,000,000 but shall
               accept any allocation amount designated by the Borrower and the
               Administrative Agent that is equal to or less than its proposed
               portion of the increase in the Revolving Credit Commitment,

                   (iii) The Administrative Agent shall have received from the
               Borrower (A) a certificate from the Borrower certifying to the
               Administrative Agent and the Participating Lenders that (1) no
               other approvals or consents from any Person are required by any
               such Person except to the extent they have been received, and (2)
               the matters set forth in Section 2.18(b) are true and correct
               both before and after giving effect to any proposed increase in
               the Revolving Credit Commitment and (B) financial projections in
               form and substance reasonably acceptable to the Participating
               Lenders and demonstrating compliance with Sections 7.1, 7.3, 7.6,
               7.9, and 7.10 hereof throughout the term of this Agreement,

                   (iv) Each Participating Lender (including any new Lenders
               party hereto) shall have received (if they request) a promissory
               note reflecting such Participating Lender's new Commitment
               amount, and the Borrower and each existing (regardless of whether
               such existing Lender is participating in any increase) and new
               Participating Lender agree to execute any and all such documents
               reasonably deemed necessary by the Administrative Agent in order
               to effectuate this Section 2.18,

                   (v) On or prior to the date of increase, each new lender
               being added as a Lender shall deliver to the Borrower and the
               Administrative Agent documentation evidencing such new Lender's
               acceptance of this Agreement and all the other Loan

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<PAGE>   70

               Papers in form and substance reasonably acceptable to the
               Administrative Agent and the Borrower (and making such Lender a
               party to this Agreement and the other Loan Papers), and

                   (vi) On or after the date of increase, the Administrative
               Agent shall deliver to each Lender notice of the new Revolving
               Credit Specified Percentages and new Total Specified Percentages
               (if any), in each case adjusted to give effect to the increase in
               the Revolving Credit Commitment.

        (b) Each increase of the Revolving Credit Commitment shall be subject to
the following conditions:

                   (i) On any date of proposed increase of the Revolving Credit
               Commitment, the representations and warranties contained in
               Article 4 hereof shall be true and correct at such time in all
               material respects, both before and after giving effect to the
               increase of the Revolving Credit Commitment, except those
               representations and warranties that specifically speak as of a
               particular date,

                   (ii) No event shall have occurred that has had, or would
               reasonably be expected to cause, a Material Adverse Effect,

                   (iii) There shall not exist a Default or an Event of Default
               hereunder and none shall exist as a result of (A) any such
               increase in the Revolving Credit Commitment or (B) the making of
               any Advance under such increase on the effective date of such
               increase, and

                   (iv) Promptly upon notice thereof, provided that such notice
               is delivered to the Borrower within 180 days of the incurrence
               thereof, payment by the Borrower of any consequential losses
               (breakage) that are incurred by any Lender in connection with any
               such increase in the Revolving Credit Commitment and the
               necessary reallocation among the existing Lenders and/or new
               creditors.

        (c) Notwithstanding anything herein or in any other Loan Paper to the
contrary,

                   (i) the Borrower is not obligated to request participation
               from, or allocate to, any existing Lender any portion of the
               proposed increase of the Revolving Credit Commitment. Each
               existing Lender agrees and acknowledges that new lenders may be
               allocated all or any portion of the proposed increase upon the
               determination of the Borrower and the Administrative Agent,

                   (ii) lenders participating in any increase to the Revolving
               Credit Commitment will become "Lenders" and be entitled to the
               same rights as each existing Lender, including without
               limitation, comparable terms regarding pro rata

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<PAGE>   71

               prepayment, repayment and commitment reduction, and the benefit
               of the other Loan Papers,

                   (iii) No Lender shall be obligated to increase the dollar
               amount of its Specified Percentage of the Revolving Credit
               Commitment without its written consent in its sole discretion,
               and

                   (iv) All increases effected in accordance with the terms of
               this Section 2.18 in the aggregate shall not exceed
               $2,000,000,000.

                                    ARTICLE 3

                              Conditions Precedent

        Section 3.1 Conditions Precedent to Closing and the Initial Advance and
the Letters of Credit. The obligation of each Lender to sign this Agreement and
to make the initial Advance and the obligation of the Primary Issuing Bank to
issue the initial Letter of Credit (and the Acquired Letters of Credit to become
subject to this Agreement) is subject to receipt by the Administrative Agent of
each of the following, in form and substance satisfactory to the Administrative
Agent, with a copy (except for any promissory notes) for each Lender:

        (a) a loan certificate of the Borrower certifying as to the accuracy of
its representations and warranties in the Loan Papers, certifying that no
Default or Material Adverse Effect, except as listed in Schedule 4.1(k) hereto,
has occurred since the last financial statements delivered to the Lenders prior
to the Closing Date with respect to the Borrower and its Subsidiaries on a
consolidated basis, certifying the Borrower is in compliance with all covenants
in the Agreement, and including a certificate of incumbency with respect to each
Authorized Signatory, and including (i) a copy of the Articles of Incorporation
of the Borrower, certified to be true, complete and correct by the secretary of
state of its state of incorporation, (ii) a copy of the By-Laws of the Borrower,
as in effect on the Closing Date, (iii) a copy of the resolutions of the
Borrower authorizing it to execute, deliver and perform this Agreement and the
other Loan Papers to which it is a party, as applicable and (iv) a copy of a
certificate of good standing and a certificate of existence for its state of
incorporation and each state in which it is or should be qualified to do
business;

        (b) a loan certificate of the Borrower certifying as to (and including)
(i) a copy of the Articles of Incorporation or other organizational documents of
each Material Subsidiary, certified to be true, complete and correct by the
secretary of state of its state of incorporation or organization (if
applicable), (ii) a copy of the By-Laws or other administrative and
organizational documentation of each Material Subsidiary as in effect on the
Closing Date, (iii) a copy of the resolutions of each Material Subsidiary
authorizing it to execute, deliver and perform the Loan Papers to which it is a
party, as applicable and (iv) a copy of a certificate of good standing and a
certificate of existence for its state of incorporation or organization (if
applicable); provided, that with respect to More Group PLC and Dauphin OTA, such
deliveries shall be required within 4 weeks after the Closing Date;

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<PAGE>   72

        (c) executed copies for each Lender of this Agreement and each other
Loan Paper executed by the appropriate Person, in each case above delivered to
the Administrative Agent on behalf of such Lenders;

        (d) an opinion of counsel and of FCC counsel to the Borrower and its
Restricted Subsidiaries addressed to the Lenders and in form and substance
satisfactory to Special Counsel and the Lenders, dated the Closing Date;

        (e) payment of all fees then due under all Fee Letters, and
reimbursement for Administrative Agent for Special Counsel's reasonable fees and
expenses rendered through the date hereof;

        (f) evidence that all corporate or organizational proceedings of the
Borrower and its Restricted Subsidiaries taken in connection with the
transactions contemplated by this Agreement and the other Loan Papers shall be
reasonably satisfactory in form and substance to the Lenders and Special
Counsel; and the Lenders shall have received copies of all documents or other
evidence which the Administrative Agent, Special Counsel or any Lender may
reasonably request in connection with such transactions;

        (g) copies of the following consolidated and consolidating financial
statements for the Borrower and its Subsidiaries, as of and for the year ended
December 31, 1999 (audited) and the fiscal quarter ending March 31, 2000: (i)
consolidated and consolidating balance sheets as of the end of such period, and
(ii) consolidated and consolidating statements of income and changes in cash for
such period; which financial statements shall set forth in comparative form
figures for the corresponding periods in the previous fiscal year, all in
reasonable detail and certified by an Authorized Signatory to the best of his
knowledge to be complete and correct and prepared in accordance with GAAP (other
than footnotes thereto), with the quarter ended March 31, 2000 financials
subject to year-end adjustment;

        (h) in form and substance satisfactory to the Lenders and Special
Counsel, such other documents, instruments and certificates as the
Administrative Agent or any Lender may reasonably require in connection with the
transactions contemplated hereby, including without limitation the status,
organization or authority of the Borrower or any Restricted Subsidiary, and the
enforceability of and security for the Obligation;

        (i) repayment in full and termination of that certain $1,000,000,000
364-day credit facility evidenced by that certain Credit Agreement, among the
Borrower, certain lenders, Bank of America, N.A. as administrative agent,
BankBoston, N.A. as documentation agent, Bank of Montreal, as co-syndication
agent and The Chase Manhattan Bank, as co-syndication agent, dated as of August
11, 1999, as amended;

        (j) there shall be no Default or Event of Default under any of the Loan
Papers (except as waived or cured hereby), both before and after giving effect
to the initial Advance under this Agreement;

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<PAGE>   73

        (k) there shall not have occurred a material adverse change since
December 31, 1999 in the business, assets, liabilities (actual or contingent),
operations, condition (financial or otherwise) of the Borrower and its
Subsidiaries taken as a whole; and

        (l) the AMFM Acquisition shall have been consummated (or are
concurrently being consummated) substantially in accordance with the terms of
the AMFM Acquisition Documentation (or on other terms reasonably acceptable to
the Administrative Agent and the Syndication Agent), and all bank or
institutional lending facilities to all AMFM Entities shall have been repaid in
full and terminated (or is concurrently being repaid in full and terminated),
excluding repayment of the indebtedness described in Schedule 7.1 attached
hereto, under the heading "Existing Indebtedness."

        Section 3.2 Conditions Precedent to All Advances and Letters of Credit.
The obligation of each Lender to make each Advance (including the initial
Advance but excluding all Mandatory Revolver Advances) and the obligation of the
Primary Issuing Bank to issue each Primary Letter of Credit (including the
initial Letter of Credit) hereunder is subject to fulfillment of the following
conditions immediately prior to or contemporaneously with each such Advance or
issuance:

        (a) With respect to Advances (other than Refinancing Advances) and each
issuance of a Letter of Credit, all of the representations and warranties of the
Borrower under this Agreement, which, pursuant to Section 4.2 hereof, are made
at and as of the time of such Advance or issuance, shall be true and correct at
such time in all material respects, both before and after giving effect to the
application of the proceeds of the Advance or issuance;

        (b) The incumbency of the Authorized Signatories shall be as stated in
the certificate of incumbency delivered in the Borrower's loan certificate
pursuant to Section 3.1(a) or as subsequently modified and reflected in a
certificate of incumbency delivered to the Administrative Agent. The Lenders
may, without waiving this condition, consider it fulfilled and a representation
by the Borrower made to such effect if no written notice to the contrary, dated
on or before the date of such Advance or issuance, is received by the
Administrative Agent from the Borrower prior to the making of such Advance or
issuance;

        (c) There shall not exist a Default hereunder, with respect to Advances
(other than Refinancing Advances) and with respect to issuance of each Letter of
Credit, or an Event of Default, with respect to any Refinancing Advance, and,
with respect to each Advance (other than a Refinancing Advance) and with respect
to issuance of each Letter of Credit, the Administrative Agent shall have
received written or telephonic certification thereof by an Authorized Signatory
(which certification, if telephonic, shall be followed promptly by written
certification);

        (d) The aggregate Advances and amount available for draws under Letters
of Credit, after giving effect to such proposed Advance or Letter of Credit,
shall not exceed the maximum principal amount then permitted to be outstanding
under the Revolving Credit Loan;

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<PAGE>   74
        (e) The Administrative Agent shall have received all such other
certificates, reports, statements or other documents as the Administrative Agent
or any Lender may reasonably request; and

        (f) there shall be no Default or Event of Default under any of the Loan
Papers both before and after giving effect to any Advance.

        Each request by the Borrower to the Administrative Agent or the Primary
Issuing Bank, as appropriate, for an Advance or the issuance of a Primary Letter
of Credit shall constitute a representation and warranty by the Borrower as of
the date of the making of such Advance or the issuance of such Letter of Credit
that all the conditions contained in this Section 3.2 have been satisfied.

                                    ARTICLE 4

                         Representations and Warranties

        Section 4.1 Representations and Warranties. The Borrower hereby
represents and warrants to each Lender as follows:

        (a) Organization; Power; Qualification. As of the Closing Date, (i) the
respective jurisdictions of incorporation or organization, as applicable, and
percentage ownership by the Borrower or another Subsidiary of the Subsidiaries
listed on Schedule 4.1(a) hereto are true and correct and (ii) all Subsidiaries
other than Radio Data Group, Inc., are Restricted Subsidiaries except as
otherwise allowed pursuant to Section 5.12 hereof. Each of the Borrower and its
Restricted Subsidiaries is a corporation, partnership, limited liability company
or other entity duly organized, validly existing and in good standing under the
laws of its state of organization. Each of the Borrower and its Restricted
Subsidiaries has the corporate or organizational power and authority to own its
properties and to carry on its business as now being and hereafter proposed to
be conducted. Each of the Borrower and its Restricted Subsidiaries is duly
qualified, in good standing and authorized to do business in each jurisdiction
in which the character of its properties or the nature of its business requires
such qualification or authorization.

        (b) Authorization. The Borrower has corporate power and has taken all
necessary corporate action to authorize it to borrow hereunder. Each of the
Borrower and its Restricted Subsidiaries has corporate or organizational power
and authority and has taken all necessary corporate or organizational action, as
the case may be, to execute, deliver and perform the Loan Papers to which it is
party in accordance with the terms thereof, and to consummate the transactions
contemplated thereby. Each Loan Paper has been duly executed and delivered by
the Borrower or the Restricted Subsidiary executing it. Each of the Loan Papers
to which the Borrower and its Restricted Subsidiaries are party is a legal,
valid and binding respective obligation of the Borrower or the Restricted
Subsidiary, as applicable, enforceable in accordance with its terms, subject, to
enforcement of remedies, to the following qualifications: (i) equitable
principles generally, and

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<PAGE>   75

(ii) Debtor Relief Laws (insofar as any such law relates to the bankruptcy,
insolvency or similar event of the Borrower or any Restricted Subsidiary).

        (c) Compliance with Other Loan Papers and Contemplated Transactions. The
execution, delivery and performance by the Borrower and its Restricted
Subsidiaries of the other Loan Papers to which they are respectively a party,
and the consummation of the transactions contemplated thereby, do not and will
not (i) require any consent or approval not already obtained, (ii) violate any
Applicable Law, (iii) conflict with, result in a breach of, or constitute a
default under the articles of incorporation or by-laws of the Borrower or any
Restricted Subsidiary, or under any Necessary Authorization, indenture,
agreement or other instrument, to which the Borrower or any Restricted
Subsidiary is a party or by which they or their respective properties may be
bound, or (iv) result in or require the creation or imposition of any Lien upon
or with respect to any property now owned or hereafter acquired by the Borrower
or any Restricted Subsidiary, except Permitted Liens.

        (d) Business. The Borrower and its Restricted Subsidiaries are engaged
solely in the communications and media broadcasting business, entertainment,
internet and activities related thereto (including, without limitation, radio
and television broadcasting, print, productions, billboards, power transmission
rentals and sales and real property rentals and sales, but only to the extent
that such real property rentals and sales arise from the lease or sale of
properties previously used by the Borrower or its Restricted Subsidiaries in the
communications and media broadcasting business).

        (e) Licenses, etc. On the Closing Date, all Necessary Authorizations
have been duly authorized and obtained, and are in full force and effect, and
the Borrower and its Restricted Subsidiaries are in compliance in all material
respects with all provisions thereof. On the Closing Date, no Necessary
Authorization is the subject of any pending or, to the best of the Borrower's
knowledge, threatened challenge or revocation. After the Closing Date, all
Necessary Authorizations have been duly authorized and obtained, and are in full
force and effect, and the Borrower and its Restricted Subsidiaries are in
compliance with all provisions of such Necessary Authorizations, unless any such
failure could not reasonably be expected to have a Material Adverse Effect.
After the Closing Date, no Necessary Authorization is the subject of any pending
or, to the best of the Borrower's knowledge, threatened challenge or revocation,
unless such action could not reasonably be expected to have a Material Adverse
Effect.

        (f) Compliance with Law. The Borrower and its Restricted Subsidiaries
are in compliance with all Applicable Laws, the violation of which could
reasonably be expected to have a Material Adverse Effect. On the Closing Date,
the Borrower and its Restricted Subsidiaries have duly filed all reports,
statements and filings that are required to be filed by any of them under the
Communications Act, and are in compliance in all material respects therewith,
including without limitation the rules and regulations of the FCC relating to
the operation of television and radio stations. After the Closing Date, the
Borrower and its Restricted Subsidiaries have duly and timely filed all reports,
statements and filings that are required to be filed by any of them under the
Communications Act, and are in compliance therewith, including without
limitation the rules and regulations of the FCC relating to the operation of
television and radio stations, except to the extent

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<PAGE>   76

that any failure to file or failure to comply could not reasonably be expected
to have a Material Adverse Effect. On the Closing Date, the Borrower and its
Restricted Subsidiaries have obtained all appropriate approvals and consents of,
and have made all filings with, the FCC in connection with the acquisition and
ownership of each of their television and radio stations, and no Person has
filed or submitted any document or instrument to the FCC challenging or
contesting the FCC order approving any assignment of a FCC license to the
Borrower or any of its Restricted Subsidiaries other than with respect to the
Auburn, New York station. After the Closing Date, the Borrower and its
Restricted Subsidiaries have obtained all appropriate approvals and consents of,
and have made all filings with, the FCC in connection with the acquisition and
ownership of each of their television and radio stations, and no Person has
filed or submitted any document or instrument to the FCC challenging or
contesting the FCC order approving any assignment of a FCC license to the
Borrower or any of its Restricted Subsidiaries, except to the extent that any
such action could not reasonably be expected to have a Material Adverse Effect.

        (g) Title to Properties. On the Closing Date, the Borrower and its
Restricted Subsidiaries have good and indefeasible title to, or a valid
leasehold interest in, all of their material assets, and none of their assets
are subject to any Liens, except Permitted Liens. After the Closing Date, the
Borrower and its Restricted Subsidiaries have good and indefeasible title to, or
a valid leasehold interest in, all of their material assets, and none of their
assets are subject to any Liens, except Permitted Liens, except to the extent
that any such circumstance could not reasonably be expected to have a Material
Adverse Effect. On the Closing Date, no financing statement or other Lien filing
(except relating to Permitted Liens and Liens securing Debt for Borrowed Money
being repaid in full on the Closing Date) is on file in any state or
jurisdiction that names the Borrower or any of its Restricted Subsidiaries as
debtor or covers (or purports to cover) any assets of the Borrower or any of its
Restricted Subsidiaries. After the Closing Date, no financing statement or other
Lien filing (except relating to Permitted Liens) is on file in any state or
jurisdiction that names the Borrower or any of its Restricted Subsidiaries as
debtor or covers (or purports to cover) any assets of the Borrower or any of its
Restricted Subsidiaries, except to the extent that any such filing could not
reasonably be expected to have a Material Adverse Effect. The Borrower and its
Restricted Subsidiaries have not signed any such financing statement or filing,
nor any security agreement authorizing any Person to file any such financing
statement or filing.

        (h) Litigation. Except as reflected on Schedule 4.1(h) hereto, there is
no action, suit, investigation or proceeding pending against, or, to the best of
the Borrower's knowledge, threatened against the Borrower or any of its
Restricted Subsidiaries, or in any other manner relating directly and materially
adversely to the Borrower, any of its Restricted Subsidiaries, or any of their
material properties, including, but not limited to any litigation with respect
to these Loan Papers, in any court or before any arbitrator of any kind or
before or by any governmental body the result of which could reasonably be
expected to require the payment of money by the Borrower or any Restricted
Subsidiary in an amount of $5,000,000 or more in any one such action, suit or
proceeding or $25,000,000 or more in the aggregate for all such actions, suits
or proceedings.

        (i) Taxes. All federal, state and other tax returns of the Borrower and
its Restricted Subsidiaries required by law to be filed have been duly filed and
all federal, state and other taxes,

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<PAGE>   77

assessments and other governmental charges or levies upon the Borrower, its
Restricted Subsidiaries or any of their properties, income, profits and assets,
which are due and payable, have been paid prior to delinquency, unless the same
are being diligently contested in good faith by appropriate proceedings, with
adequate reserves established therefor, and no Lien (other than a Permitted
Lien) has attached and no foreclosure, distraint, sale or similar proceedings
have been commenced. The charges, accruals and reserves on the books of the
Borrower and its Restricted Subsidiaries in respect of their taxes are, in the
judgment of the Borrower, adequate.

        (j) Financial Statements; Material Liabilities. The Borrower has
furnished or caused to be furnished to the Lenders copies of its December 31,
1999, financial statements, which are prepared in good faith and complete in all
material respects and present fairly in accordance with GAAP the financial
position of the Borrower and its Restricted Subsidiaries as at such dates and
the results of operations for the periods then ended, subject to normal year-end
adjustments. On the Closing Date, the Borrower and its Restricted Subsidiaries
have no material liabilities, contingent or otherwise, nor material losses,
except as disclosed in writing to the Lenders prior to the Closing Date. After
the Closing Date, the Borrower and its Restricted Subsidiaries have no material
liabilities, contingent or otherwise, nor material losses, except to the extent
that such material liabilities or material losses could not reasonably be
expected to have a Material Adverse Effect. The Borrower and its Restricted
Subsidiaries are Solvent.

        (k) No Adverse Change. Since December 31, 1999, no event or
circumstances has occurred or arisen that could reasonably be expected to have a
Material Adverse Effect except as listed on Schedule 4.1(k) hereto.

        (l) ERISA. None of the Borrower or its Controlled Group maintains or
contributes to any Plan other than those disclosed to the Administrative Agent
in writing from time to time. On the Closing Date, each such Plan is in
compliance in all material respects with the applicable provisions of ERISA, the
Code, and any other applicable Federal or state law, rule or regulation. After
the Closing Date, each such Plan is in compliance with the applicable provisions
of ERISA, the Code, and any other applicable Federal or state law, rule or
regulation, except to the extent any such noncompliance could not reasonably be
expected to have a Material Adverse Effect. With respect to each Plan of the
Borrower and each member of its Controlled Group (other than a Multiemployer
Plan), all reports required under ERISA or any other Applicable Law to be filed
with any governmental authority, the failure of which to file could reasonably
result in liability of the Borrower or any member of its Controlled Group in
excess of $100,000, have been duly filed. All such reports are true and correct
in all material respects as of the date given. On the Closing Date, no such Plan
of the Borrower or any member of its Controlled Group has been terminated nor
has any accumulated funding deficiency (as defined in Section 412(a) of the
Code) been incurred (without regard to any waiver granted under Section 412 of
the Code), nor has any funding waiver from the

                                       72
<PAGE>   78

Internal Revenue Service been received or requested. After the Closing Date, no
such Plan of the Borrower or any member of its Controlled Group has been
terminated nor has any accumulated funding deficiency (as defined in Section
412(a) of the Code) been incurred (without regard to any waiver granted under
Section 412 of the Code), nor has any funding waiver from the Internal Revenue
Service been received or requested, except to the extent it could not reasonably
be expected to have a Material Adverse Effect. On the Closing Date, none of the
Borrower or any member of its Controlled Group has failed to make any
contribution or pay any amount due or owing as required by Section 412 of the
Code or Section 302 of ERISA or the terms of any such Plan prior to the due date
under Section 412 of the Code and Section 302 of ERISA. After the Closing Date,
none of the Borrower or any member of its Controlled Group has failed to make
any contribution or pay any amount due or owing as required by Section 412 of
the Code or Section 302 of ERISA or the terms of any such Plan prior to the due
date under Section 412 of the Code and Section 302 of ERISA, except to the
extent it could not reasonably be expected to have a Material Adverse Effect. On
the Closing Date, there has been no ERISA Event or any event requiring
disclosure under Section 4041(c)(3)(C), 4068(f), 4063(a) or 4043(b) of ERISA
with respect to any Plan or trust of the Borrower or any member of its
Controlled Group since the effective date of ERISA. After the Closing Date,
there has been no ERISA Event or any event requiring disclosure under Section
4041(c)(3)(C), 4068(f), 4063(a) or 4043(b) of ERISA with respect to any Plan or
trust of the Borrower or any member of its Controlled Group since the effective
date of ERISA, except to the extent that any such event could not reasonably be
expected to have a Material Adverse Effect. The value of the assets of each Plan
(other than a Multiemployer Plan) of the Borrower and each member of its
Controlled Group equaled or exceeded the present value of the benefit
liabilities, as defined in Title IV of ERISA, of each such Plan as of the most
recent valuation date using Plan actuarial assumptions at such date. On the
Closing Date, there are no pending or, to the best of the Borrower's knowledge,
threatened claims, lawsuits or actions (other than routine claims for benefits
in the ordinary course) asserted or instituted against, and neither the Borrower
nor any member of its Controlled Group has knowledge of any threatened
litigation or claims against, (i) the assets of any Plan or trust or against any
fiduciary of a Plan with respect to the operation of such Plan, or (ii) the
assets of any employee welfare benefit plan within the meaning of Section 3(1)
or ERISA, or against any fiduciary thereof with respect to the operation of any
such plan. After the Closing Date, there are no pending or, to the best of the
Borrower's knowledge, threatened claims, lawsuits or actions (other than routine
claims for benefits in the ordinary course) asserted or instituted against, and
neither the Borrower nor any member of its Controlled Group has knowledge of any
threatened litigation or claims against, (i) the assets of any Plan or trust or
against any fiduciary of a Plan with respect to the operation of such Plan, or
(ii) the assets of any employee welfare benefit plan within the meaning of
Section 3(1) or ERISA, or against any fiduciary thereof with respect to the
operation of any such plan, except to the extent such claim, lawsuit or action
could not reasonably be expected to have a Material Adverse Effect. On the
Closing Date, none of the Borrower or any member of its Controlled Group has
engaged in any prohibited

                                       73
<PAGE>   79

transactions, within the meaning of Section 406 of ERISA or Section 4975 of the
Code, in connection with any Plan, and none of the Borrower or any member of its
Controlled Group has withdrawn from any Multiemployer Plan, nor has incurred or
reasonably expects to incur (A) any liability under Title IV of ERISA (other
than premiums due under Section 4007 of ERISA to the PBGC), (B) any withdrawal
liability (and no event has occurred which with the giving of notice under
Section 4219 of ERISA would result in such liability) under Section 4201 of
ERISA as a result of a complete or partial withdrawal (within the meaning of
Section 4203 or 4205 of ERISA) from a Multiemployer Plan, or (C) any liability
under Section 4062 of ERISA to the PBGC or to a trustee appointed under Section
4042 of ERISA. After the Closing Date, none of the Borrower or any member of its
Controlled Group has engaged in any prohibited transactions, within the meaning
of Section 406 of ERISA or Section 4975 of the Code, in connection with any
Plan, and none of the Borrower or any member of its Controlled Group has
withdrawn from any Multiemployer Plan, nor has incurred or reasonably expects to
incur (A) any liability under Title IV of ERISA (other than premiums due under
Section 4007 of ERISA to the PBGC), (B) any withdrawal liability (and no event
has occurred which with the giving of notice under Section 4219 of ERISA would
result in such liability) under Section 4201 of ERISA as a result of a complete
or partial withdrawal (within the meaning of Section 4203 or 4205 of ERISA) from
a Multiemployer Plan, or (C) any liability under Section 4062 of ERISA to the
PBGC or to a trustee appointed under Section 4042 of ERISA, except to the extent
it could not reasonably be expected to have a Material Adverse Effect. On the
Closing Date, none of the Borrower, any member of its Controlled Group, or any
organization to which the Borrower or any member of its Controlled Group is a
successor or parent corporation within the meaning of ERISA Section 4069(b), has
engaged in a transaction within the meaning of ERISA Section 4069 and none of
the Borrower or any member of its Controlled Group maintains or has established
any welfare benefit plan within the meaning of Section 3(1) of ERISA which
provides for continuing benefits or coverage for any participant or any
beneficiary of any participant after such participant's termination of
employment except as may be required by the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended ("COBRA") and the regulations thereunder,
and at the expense of the participant or the beneficiary of the participant, or
retiree medical liabilities. After the Closing Date, none of the Borrower, any
member of its Controlled Group, or any organization to which the Borrower or any
member of its Controlled Group is a successor or parent corporation within the
meaning of ERISA Section 4069(b), has engaged in a transaction within the
meaning of ERISA Section 4069 and none of the Borrower or any member of its
Controlled Group maintains or has established any welfare benefit plan within
the meaning of Section 3(1) of ERISA which provides for continuing benefits or
coverage for any participant or any beneficiary of any participant after such
participant's termination of employment except as may be required by the COBRA
and the regulations thereunder, and at the expense of the participant or the
beneficiary of the participant, or retiree medical liabilities, except to the
extent it could not reasonably be expected to have a Material Adverse Effect. On
the Closing Date, each of the Borrower and its Controlled Group which maintains
a welfare benefit plan within the meaning of Section 3(1) of ERISA has complied
in all material respects with any applicable notice and continuation
requirements of COBRA and the regulations thereunder. After the Closing Date,
each of the Borrower and its Controlled Group which maintains a welfare benefit
plan within the meaning of Section 3(1) of ERISA has complied with any
applicable notice and continuation requirements of COBRA and the regulations
thereunder, except to the extent that such failure could not reasonably be
expected to have a Material Adverse Effect.

        (m) Compliance with Regulations T, U and X. The Borrower is not engaged
principally or as one of its important activities in the business of extending
credit for the purpose of purchasing or carrying any margin stock within the
meaning of Regulations T, U and X of the Board of Governors of the Federal
Reserve System, and no part of the proceeds of the Loans or the Letters of
Credit will be used to purchase or carry any margin stock or to extend credit to
others for the purpose of purchasing or carrying any margin stock. No assets of
the Borrower and its Restricted Subsidiaries are margin stock. None of the
Borrower and its Restricted Subsidiaries, nor any agent acting on their behalf,
have taken or will knowingly take any action which might cause this

                                       74
<PAGE>   80

Agreement or any Loan Papers to violate any regulation of the Board of Governors
of the Federal Reserve System or to violate the Securities Exchange Act of 1934,
in each case as in effect now or as the same may hereafter be in effect.

        (n) Absence of Default. The Borrower and its Restricted Subsidiaries are
in compliance in all material respects with all of the provisions of their
articles of incorporation and by-laws, and no event has occurred or failed to
occur, which has not been remedied or waived, the occurrence or non-occurrence
of which constitutes, or which with the passage of time or giving of notice or
both would constitute, (i) an Event of Default or (ii) a default by the Borrower
or any of its Restricted Subsidiaries under any material indenture, agreement or
other instrument, or any judgment, decree or order to which the Borrower or any
of its Restricted Subsidiaries is a party or by which they or any of their
material properties is bound.

        (o) Investment Company Act. The Borrower is not required to register
under the provisions of the Investment Company Act of 1940, as amended. Neither
the entering into or performance by the Borrower of this Agreement nor the
issuance of the notes violates any provision of such act or requires any
consent, approval, or authorization of, or registration with, the Securities and
Exchange Commission or any other governmental or public body or authority
pursuant to any provisions of such act.

        (p) Environmental Matters. On the Closing Date, neither the Borrower nor
any Subsidiary has any actual knowledge or reason to believe that any substance
deemed hazardous by any Applicable Environmental Law, has been installed on any
real property now owned by the Borrower or any of its Subsidiaries. After the
Closing Date, neither the Borrower nor any Subsidiary has any actual knowledge
or reason to believe that any substance deemed hazardous by any Applicable
Environmental Law, has been installed on any real property now owned by the
Borrower or any of its Subsidiaries, except to the extent the existence of such
substances could not reasonably be expected to have a Material Adverse Effect.
On the Closing Date, the Borrower and its Subsidiaries are not in violation of
or subject to any existing, pending or, to the best of the Borrower's knowledge,
threatened investigation or inquiry by any governmental authority or to any
material remedial obligations under any Applicable Environmental Laws, and this
representation and warranty would continue to be true and correct following
disclosure to the applicable governmental authorities of all relevant facts,
conditions and circumstances, if any, pertaining to any real property of the
Borrower and its Subsidiaries. After the Closing Date, the Borrower and its
Subsidiaries are not in violation of or subject to any existing, pending or, to
the best of the Borrower's knowledge, threatened investigation or inquiry by any
governmental authority or to any remedial obligations under any Applicable
Environmental Laws, and this representation and warranty would continue to be
true and correct following disclosure to the applicable governmental authorities
of all relevant facts, conditions and circumstances, if any, pertaining to any
real property of the Borrower and its Subsidiaries, except to the extent that
such violation, investigation or inquiry could not reasonably be expected to
have a Material Adverse Effect. On the Closing Date, the Borrower and its
Subsidiaries undertook, at the time of acquisition of any real property,
reasonable inquiry into the previous ownership and uses of such real property
consistent with good commercial or customary practice, and the

                                       75
<PAGE>   81

Borrower and its Subsidiaries have taken all reasonable steps to determine, and
the Borrower and its Subsidiaries have no actual knowledge or reason to believe,
after reasonable investigation, that any hazardous substances or solid wastes
have been disposed of or otherwise released on or to the real property of the
Borrower or any of its Subsidiaries in any manner or quantities which would be
deemed a violation of the Applicable Environmental Laws. After the Closing Date,
the Borrower and its Subsidiaries undertook, at the time of acquisition of any
real property, reasonable inquiry into the previous ownership and uses of such
real property consistent with good commercial or customary practice, and the
Borrower and its Subsidiaries have taken all reasonable steps to determine, and
the Borrower and its Subsidiaries have no actual knowledge or reason to believe,
after reasonable investigation, that any hazardous substances or solid wastes
have been disposed of or otherwise released on or to the real property of the
Borrower or any of its Subsidiaries in any manner or quantities which would be
deemed a violation of the Applicable Environmental Laws, except to the extent
such hazardous substances or solid wastes could not reasonably be expected to
have a Material Adverse Effect.

        (q) Valid Issuance of Securities. All Capital Stock of the Borrower and
its Subsidiaries has been duly authorized and validly issued, and is fully paid
and nonassessable. The Capital Stock of the Borrower and its Subsidiaries, when
issued or sold, was either (i) registered or qualified under applicable federal
or state securities laws, or (ii) exempt therefrom.

        (r) Certain Fees. No broker's, finder's or other fee or commission will
be payable by the Borrower (other than to the Lenders hereunder) with respect to
the making of any of the Commitments or the Loans hereunder or the issuance of
any Letters of Credit. The Borrower agrees to indemnify and hold harmless the
Administrative Agent and each Lender from and against any claims, demand,
liability, proceedings, costs or expenses asserted with respect to or arising in
connection with any such fees or commissions.

        (s) Compliance. No event has occurred which permits (or with the passage
of time would permit) the revocation or termination of any license, consents,
permits and authorizations, or which could result in the imposition of any
restriction thereon, in each case except any that could not reasonably be
expected to have a Material Adverse Effect.

        (t) Patents, Etc. The Borrower and its Restricted Subsidiaries have
obtained all patents, trademarks, service-marks, trade names, copyrights,
licenses and other rights, free from burdensome restrictions, that are necessary
for the operation of their business as presently conducted and as proposed to be
conducted, the loss of which could reasonably be expected to have a Material
Adverse Effect. Nothing has come to the attention of the Borrower or any of its
Restricted Subsidiaries to the effect that (i) any process, method, part or
other material presently contemplated to be employed by the Borrower or any
Restricted Subsidiary may infringe any patent, trademark, service-mark, trade
name, copyright, license or other right owned by any other Person, or (ii) there
is pending or overtly threatened any claim or litigation against or affecting
the Borrower or any Restricted Subsidiary contesting its right to sell or use
any such process, method, part or other material, except such circumstances that
could not reasonably be expected to have a Material Adverse Effect.

                                       76
<PAGE>   82

        (u) Disclosure. Neither this Agreement nor any other document,
certificate or statement which has been furnished to any Lender by or on behalf
of the Borrower or any Restricted Subsidiary in connection herewith contained
any untrue statement of a material fact or omitted to state a material fact
necessary in order to make the statement contained herein and therein not
misleading at the time it was furnished. There is no fact known to the Borrower
and not known to the public generally that could reasonably be expected to
materially adversely affect the assets or business of the Borrower and its
Restricted Subsidiaries, or in the future could reasonably be expected (so far
as the Borrower can now foresee) to have a Material Adverse Effect, which has
not been set forth in this Agreement or in the documents, certificates and
statements furnished to the Lenders by or on behalf of the Borrower prior to the
date hereof in connection with the transaction contemplated hereby.

        (v) Year 2000 Compliance. The Year 2000 Problem has not had, and the
Borrower reasonably believes that the Year 2000 Problem will not have, a
Material Adverse Effect.

        (w) Qualified Commercial Loan Representations.

                (i) The Borrower has been advised by the Administrative Agent
        and the Lenders to seek the advice of an attorney and accountant of the
        Borrower's choice in connection with this Agreement and the Loan Papers.

                (ii) The Borrower has had the opportunity to seek the advice of
        an attorney and an accountant of the Borrower's choice in connection
        with this Agreement and the Loan Papers.

                (iii) This Agreement and the Loan Papers have not been nor will
        be made for the purpose of financing a business licensed by the Motor
        Vehicle Board of the Texas Department of Transportation under Section
        4.01(a), Texas Motor Vehicle Commission Code (Article 4413(36), Texas
        Civil Statutes).

                (iv) This Agreement and the Loan Papers evidence a "qualified
        commercial loan" as that term is defined in Section 306.001 of the Texas
        Finance Code, as amended.

        Section 4.2 Survival of Representations and Warranties, etc. All
representations and warranties made under this Agreement and the other Loan
Papers shall be deemed to be made at and as of the Closing Date and at and as of
the date of each Loan and each Letter of Credit (except with respect to
Refinancing Advances and Mandatory Revolver Advances), and each shall be true
and correct when made, except to the extent (a) previously fulfilled in
accordance with the terms hereof, (b) applicable to a specific date or otherwise
subsequently inapplicable, or (c) previously waived in writing by the
Determining Lenders with respect to any particular factual circumstance. All
such representations and warranties shall survive, and not be waived by, the
execution hereof by any Lender, any investigation or inquiry by any Lender, or
by the making of any Advance under this Agreement.

                                       77
<PAGE>   83

                                    ARTICLE 5

                                General Covenants

        So long as any of the Obligations are outstanding and unpaid or any of
the Commitments is outstanding (whether or not the conditions to borrowing have
been or can be fulfilled):

        Section 5.1 Preservation of Existence and Similar Matters. Except as
provided in Section 7.5, the Borrower shall, and shall cause each Restricted
Subsidiary to:

        (a) preserve and maintain, or timely obtain and thereafter preserve and
maintain, its existence, rights, franchises, licenses, authorizations, consents,
privileges and all other Necessary Authorizations from federal, state and local
governmental bodies and any tribunal (regulatory or otherwise), the loss of
which could have a Material Adverse Effect; and

        (b) qualify and remain qualified and authorized to do business in each
jurisdiction in which the character of its properties or the nature of its
business requires such qualification or authorization, unless the failure to do
so could not have a Material Adverse Effect.

        Section 5.2 Business; Compliance with Applicable Law. The Borrower and
its Restricted Subsidiaries shall (a) engage substantially in the media and
communication related business and activities related thereto and the
entertainment and internet businesses and activities related thereto, and (b)
comply in all material respects with the requirements of all Applicable Law, the
failure of which could reasonably be expected to have a Material Adverse Effect.

        Section 5.3 Maintenance of Properties. The Borrower shall, and shall
cause each Restricted Subsidiary to, maintain or cause to be maintained all its
properties (whether owned or held under lease) in reasonably good repair,
working order and condition, taken as a whole, and from time to time make or
cause to be made all appropriate repairs, renewals, replacements, additions,
betterments and improvements thereto.

        Section 5.4 Accounting Methods and Financial Records. The Borrower
shall, and shall cause each Restricted Subsidiary to, maintain a system of
accounting established and administered in accordance with GAAP, keep adequate
records and books of account in which complete entries will be made and all
transactions reflected in accordance with GAAP, and keep accurate and complete
records of its respective assets. The Borrower and each of its Restricted
Subsidiaries shall maintain a fiscal year ending on December 31.

        Section 5.5 Insurance. The Borrower shall, and shall cause each
Restricted Subsidiary or its direct parent to, maintain insurance from
responsible companies in such amounts and against such risks as shall be
customary and usual in the industry for companies of similar size and
capability, but in no event less than the amount and types insured as of the
Closing Date. Each insurance policy shall provide for at least 30 days' prior
notice to the Administrative Agent of any

                                       78
<PAGE>   84

proposed termination or cancellation of such policy, whether on account of
default or otherwise, the loss of which could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

        Section 5.6 Payment of Taxes and Claims. The Borrower shall, and shall
cause each Restricted Subsidiary to, pay and discharge all taxes, assessments
and governmental charges or levies imposed upon it or its income or properties
prior to the date on which penalties attach thereto, and all lawful material
claims for labor, materials and supplies which, if unpaid, might become a Lien
upon any of its properties; except that no such tax, assessment, charge, levy or
claim need be paid which is being diligently contested in good faith by
appropriate proceedings and for which adequate reserves shall have been set
aside on the appropriate books, but only so long as no Lien (other than a
Permitted Lien) shall attach with respect thereto and no foreclosure, distraint,
sale or similar proceedings shall have been commenced. The Borrower shall, and
shall cause each Restricted Subsidiary to, timely file all information returns
required by federal, state or local tax authorities.

        Section 5.7 Visits and Inspections. The Borrower shall, and shall cause
each Restricted Subsidiary to, promptly permit representatives of the
Administrative Agent or any Lender from time to time to (a) visit and inspect
the properties of the Borrower and Restricted Subsidiary as often as the
Administrative Agent or any Lender shall deem advisable, (b) inspect and make
extracts from and copies of the Borrower's and each Restricted Subsidiary's
books and records, and (c) discuss with the Borrower's and each Restricted
Subsidiary's directors, officers, employees and auditors its business, assets,
liabilities, financial positions, results of operations and business prospects.

        Section 5.8 Payment of Debt for Borrowed Money. Subject to Section 5.6
hereof, the Borrower shall, and shall cause each Restricted Subsidiary to, pay
its Debt for Borrowed Money when and as the same becomes due, other than amounts
(other than the Obligations) duly and diligently disputed in good faith.

        Section 5.9 Use of Proceeds. The Borrower shall use the proceeds of the
Loans and Letters of Credit to make acquisitions permitted under Section 7.5
hereof, to make Capital Expenditures, to make Investments (including advances to
Subsidiaries) and Acquisitions permitted hereunder, for working capital and for
other general corporate purposes.

        SECTION 5.10 INDEMNITY.

        (a) THE BORROWER AGREES TO DEFEND, PROTECT, INDEMNIFY AND HOLD HARMLESS
THE ADMINISTRATIVE AGENT, THE ISSUING BANKS, EACH LENDER, EACH OF THEIR
RESPECTIVE BANK AFFILIATES, AND EACH OF THEIR RESPECTIVE (INCLUDING SUCH BANK
AFFILIATES') OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, SHAREHOLDERS AND
CONSULTANTS (INCLUDING, WITHOUT LIMITATION, THOSE RETAINED IN CONNECTION WITH
THE SATISFACTION OR ATTEMPTED SATISFACTION OF ANY OF THE CONDITIONS SET FORTH
HEREIN) OF EACH OF THE FOREGOING (COLLECTIVELY, "INDEMNITEES") FROM AND AGAINST
ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, CLAIMS, COSTS, EXPENSES AND DISBURSEMENTS OF ANY KIND OR
NATURE WHATSOEVER (INCLUDING, WITHOUT LIMITATION,

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<PAGE>   85

THE REASONABLE FEES AND DISBURSEMENTS OF A SINGLE COUNSEL AND ANY LOCAL OR
REGULATORY COUNSEL FOR SUCH INDEMNITEES (OR MORE THAN A SINGLE COUNSEL IF THERE
IS A CONFLICT BETWEEN INDEMNITEES THAT WOULD MAKE SUCH SEPARATE REPRESENTATION
ADVISABLE) IN CONNECTION WITH ANY INVESTIGATIVE, ADMINISTRATIVE OR JUDICIAL
PROCEEDING, WHETHER OR NOT SUCH INDEMNITEES SHALL BE DESIGNATED A PARTY
THERETO), IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST SUCH INDEMNITEES (WHETHER
DIRECT, INDIRECT OR CONSEQUENTIAL AND WHETHER BASED ON ANY FEDERAL, STATE, OR
LOCAL LAWS AND REGULATIONS, UNDER COMMON LAW OR AT EQUITABLE CAUSE, OR ON
CONTRACT, TORT OR OTHERWISE, ARISING FROM OR CONNECTED WITH THE PAST, PRESENT OR
FUTURE OPERATIONS OF THE BORROWER OR ANY OF ITS SUBSIDIARIES OR THEIR RESPECTIVE
PREDECESSORS IN INTEREST, OR THE PAST, PRESENT OR FUTURE ENVIRONMENTAL CONDITION
OF PROPERTY OF THE BORROWER OR ANY OF ITS SUBSIDIARIES), IN ANY MANNER RELATING
TO OR ARISING OUT OF THIS AGREEMENT, THE LOAN PAPERS, OR ANY ACT, EVENT OR
TRANSACTION OR ALLEGED ACT, EVENT OR TRANSACTION RELATING OR ATTENDANT THERETO,
THE MAKING OF OR ANY PARTICIPATIONS IN THE ADVANCES, LOANS OR THE LETTERS OF
CREDIT AND THE MANAGEMENT OF THE ADVANCES, LOANS AND THE LETTERS OF CREDIT,
INCLUDING IN CONNECTION WITH, OR AS A RESULT, IN WHOLE OR IN PART, OF ANY
ORDINARY OR MERE NEGLIGENCE OF ADMINISTRATIVE AGENT, THE ISSUING BANKS OR ANY
LENDER (OTHER THAN THOSE MATTERS RAISED EXCLUSIVELY BY A PARTICIPANT AGAINST THE
ADMINISTRATIVE AGENT, THE ISSUING BANKS OR ANY LENDER AND NOT THE BORROWER), OR
THE USE OR INTENDED USE OF THE PROCEEDS OF THE ADVANCES, LOANS AND THE LETTERS
OF CREDIT HEREUNDER, OR IN CONNECTION WITH ANY INVESTIGATION OF ANY POTENTIAL
MATTER COVERED HEREBY, BUT EXCLUDING (i) ANY CLAIM OR LIABILITY THAT ARISES AS
THE RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY INDEMNITEE, AS
FINALLY JUDICIALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION, (ii) MATTERS
RAISED BY ONE LENDER AGAINST ANOTHER LENDER OR BY ANY SHAREHOLDERS OF A LENDER
AGAINST A LENDER OR ITS MANAGEMENT AND (iii) CLAIMS FOR PUNITIVE OR
CONSEQUENTIAL DAMAGES (COLLECTIVELY, "INDEMNIFIED MATTERS"); PROVIDED HOWEVER,
THAT SO LONG AS NO EVENT OF DEFAULT SHALL HAVE OCCURRED AND BE CONTINUING, THERE
SHALL BE NO SETTLEMENT BY THE INDEMNITEES OR ANY OF THEM WITH RESPECT TO ANY
INDEMNIFIED MATTER WITHOUT PRIOR CONSULTATION WITH THE BORROWER.

        (b) IN ADDITION, THE BORROWER SHALL PERIODICALLY, UPON REQUEST,
REIMBURSE EACH INDEMNITEE FOR ITS REASONABLE LEGAL AND OTHER ACTUAL EXPENSES
(INCLUDING THE COST OF ANY INVESTIGATION AND PREPARATION) INCURRED IN CONNECTION
WITH ANY INDEMNIFIED MATTER. IF FOR ANY REASON THE FOREGOING INDEMNIFICATION IS
UNAVAILABLE TO ANY INDEMNITEE OR INSUFFICIENT TO HOLD ANY INDEMNITEE HARMLESS
WITH RESPECT TO INDEMNIFIED MATTERS, THEN THE BORROWER SHALL CONTRIBUTE TO THE
AMOUNT PAID OR PAYABLE BY SUCH INDEMNITEE AS A RESULT OF SUCH LOSS, CLAIM,
DAMAGE OR LIABILITY IN SUCH PROPORTION AS IS APPROPRIATE TO REFLECT NOT ONLY THE
RELATIVE BENEFITS RECEIVED BY THE BORROWER AND THE BORROWER'S STOCKHOLDERS ON
THE ONE HAND AND SUCH INDEMNITEE ON THE OTHER HAND BUT ALSO THE RELATIVE FAULT
OF THE BORROWER AND SUCH INDEMNITEE, AS WELL AS ANY OTHER RELEVANT EQUITABLE
CONSIDERATIONS. THE REIMBURSEMENT, INDEMNITY AND CONTRIBUTION OBLIGATIONS UNDER
THIS SECTION SHALL BE IN ADDITION TO ANY LIABILITY WHICH THE BORROWER MAY
OTHERWISE HAVE, SHALL EXTEND UPON THE SAME TERMS AND CONDITIONS TO EACH
INDEMNITEE, AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF ANY
SUCCESSORS, ASSIGNS, HEIRS AND PERSONAL REPRESENTATIVES OF THE BORROWER, THE
ADMINISTRATIVE AGENT, THE ISSUING BANKS, THE LENDERS AND ALL OTHER INDEMNITEES.
THIS SECTION SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT AND PAYMENT OF THE
OBLIGATIONS.

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        Section 5.11 Environmental Law Compliance. The use which the Borrower or
any Subsidiary intends to make of any real property owned by it will not result
in the disposal or other release of any hazardous substance or solid waste on or
to such real property in any manner or quantities which would be deemed a
violation of the Applicable Environmental Laws. The Borrower further agrees to
exercise reasonable due diligence in the acquisition of real property in
connection with compliance with Applicable Environmental Laws. As used herein,
the terms "hazardous substance" and "release" as used in this Section shall have
the meanings specified in CERCLA (as defined in the definition of Applicable
Environmental Laws), and the terms "solid waste" and "disposal" shall have the
meanings specified in RCRA (as defined in the definition of Applicable
Environmental Laws); provided, however, that if CERCLA or RCRA is amended so as
to broaden the meaning of any term defined thereby, such broader meaning shall
apply subsequent to the effective date of such amendment; and provided further,
to the extent that any other law applicable to the Borrower, any Subsidiary or
any of their properties establishes a meaning for "hazardous substance,"
"release," "solid waste," or "disposal" which is broader than that specified in
either CERCLA or RCRA, such broader meaning shall apply. THE BORROWER AGREES TO
INDEMNIFY AND HOLD THE ADMINISTRATIVE AGENT, THE ISSUING BANKS AND EACH LENDER
HARMLESS FROM AND AGAINST, AND TO REIMBURSE THEM WITH RESPECT TO, ANY AND ALL
CLAIMS, DEMANDS, CAUSES OF ACTION, LOSS, DAMAGE, LIABILITIES, COSTS AND EXPENSES
(INCLUDING ATTORNEYS' FEES AND COURTS COSTS) OF ANY KIND OR CHARACTER, KNOWN OR
UNKNOWN, FIXED OR CONTINGENT, ASSERTED AGAINST OR INCURRED BY ANY OF THEM AT ANY
TIME AND FROM TIME TO TIME BY REASON OF OR ARISING OUT OF (a) THE FAILURE OF THE
BORROWER OR ANY SUBSIDIARY TO PERFORM ANY OBLIGATION HEREUNDER REGARDING
ASBESTOS OR APPLICABLE ENVIRONMENTAL LAWS, (b) ANY VIOLATION ON OR BEFORE THE
RELEASE DATE OF ANY APPLICABLE ENVIRONMENTAL LAW IN EFFECT ON OR BEFORE THE
RELEASE DATE, AND (c) ANY ACT, OMISSION, EVENT OR CIRCUMSTANCE EXISTING OR
OCCURRING ON OR PRIOR TO THE RELEASE DATE (INCLUDING WITHOUT LIMITATION THE
PRESENCE ON SUCH REAL PROPERTY OR RELEASE FROM SUCH REAL PROPERTY OF HAZARDOUS
SUBSTANCES OR SOLID WASTES DISPOSED OF OR OTHERWISE RELEASED ON OR PRIOR TO THE
RELEASE DATE), RESULTING FROM OR IN CONNECTION WITH THE OWNERSHIP OF THE REAL
PROPERTY, REGARDLESS OF WHETHER THE ACT, OMISSION, EVENT OR CIRCUMSTANCE
CONSTITUTED A VIOLATION OF ANY APPLICABLE ENVIRONMENTAL LAW AT THE TIME OF ITS
EXISTENCE OR OCCURRENCE, OR WHETHER THE ACT, OMISSION, EVENT OR CIRCUMSTANCE IS
CAUSED BY OR RELATES TO THE NEGLIGENCE OF ANY INDEMNIFIED PERSON; PROVIDED THAT,
THE BORROWER SHALL NOT BE UNDER ANY OBLIGATION TO INDEMNIFY THE ADMINISTRATIVE
AGENT, THE ISSUING BANKS OR ANY LENDER TO THE EXTENT THAT ANY SUCH LIABILITY
ARISES AS THE RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
PERSON, AS FINALLY JUDICIALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION.
THE PROVISIONS OF THIS PARAGRAPH SHALL SURVIVE THE RELEASE DATE AND SHALL
CONTINUE THEREAFTER IN FULL FORCE AND EFFECT.

        Section 5.12 Conversion of Unrestricted Subsidiaries.

        (a) Provided there shall exist no Default or Event of Default both prior
to and after giving effect to the conversion of any Restricted Subsidiary to an
Unrestricted Subsidiary, the Borrower may, in the Borrower's sole discretion and
upon 30 days' written notice to the Lenders, cause any Restricted Subsidiary to
become an Unrestricted Subsidiary.

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<PAGE>   87

        (b) Provided there shall exist no Default or Event of Default both prior
to and after giving effect to the conversion of any Unrestricted Subsidiary to a
Restricted Subsidiary, Borrower may, in the Borrower's sole discretion and upon
30 days' written notice to the Lenders, cause any Unrestricted Subsidiary to
become a Restricted Subsidiary; provided, that such Subsidiaries otherwise meet
the requirements contained in this Agreement for such designation including but
not limited to the definition of Subsidiary.

        Section 5.13 Year 2000 Compliance. The Borrower will promptly notify the
Administrative Agent in the event the Borrower discovers or determines that any
computer application (including those of its suppliers and vendors) that is
material to its or any of its Subsidiaries' business and operations will not be
Year 2000 Compliant on a timely basis, except to the extent that such failure
could not be reasonably expected to have a Material Adverse Effect.

        Section 5.14 AMFM Entities and SFX Entities. After the acquisition of
AMFM and SFX by the Borrower, respectively, and until their respective
Collateral Release Date, no Investment may be made by the Borrower or any
Restricted Subsidiary (other than (i) Investments made with Capital Stock of the
Borrower and (ii) any Investments made by any AMFM Entity or SFX Entity) in any
AMFM Entity or any SFX Entity, except Investments from time to time in an
AMFM/SFX Obligor made pursuant to Intercompany Notes executed by such AMFM/SFX
Obligors. The Borrower agrees to, and shall cause each Restricted Subsidiary to,
until the respective Collateral Release Dates, pledge such Intercompany Notes to
the Administrative Agent on behalf of the Lenders to secure the Obligations
pursuant to documentation substantially in the form of Exhibit J hereto, and
deliver each such Intercompany Note endorsed by Borrower or such Restricted
Subsidiary and payable to the Administrative Agent on behalf of itself and the
Lenders, but in no event shall the Borrower or any Restricted Subsidiary be
obligated to pledge Intercompany Notes evidencing outstanding amounts in the
aggregate in excess of the Maximum Pledged Intercompany Note Amount (as such
Maximum Pledged Intercompany Note Amount changes quarterly). The Borrower
covenants and agrees that promptly upon any change in the Maximum Pledged
Intercompany Note Amount that increases such amount, the Borrower will, and will
cause its Restricted Subsidiaries to, immediately pledge an additional amount of
Intercompany Notes (up to the Maximum Pledged Intercompany Note Amount) to the
Administrative Agent on behalf of the Lenders, and deliver each such
Intercompany Note endorsed by the Borrower or such Restricted Subsidiary to be
payable to the Administrative Agent. Upon any change in the Maximum Pledged
Intercompany Note Amount that decreases such amount, if the Borrower has Pledged
Intercompany Notes in an aggregate principal face amount in excess of the
Maximum Pledged Intercompany Note Amount, the Lenders agree to release the
pledge and Lien on the amount of such Pledged Intercompany Notes in excess of
the Maximum Pledged Intercompany Note Amount. The Lenders hereby authorize
Administrative Agent to take all such action to release such Pledged
Intercompany Notes, including, without limitation, releasing Pledged
Intercompany Notes in excess of such amount and receiving new Pledged
Intercompany Notes in different amounts.

        The Borrower further agrees, and shall cause each AMFM/SFX Obligor
receiving any Investment from the Borrower or any other Restricted Subsidiary
(other than any AMFM Entity or SFX Entity) after the AMFM Acquisition and the
SFX Acquisition, respectively, and until their

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<PAGE>   88

respective Collateral Release Dates, to, execute a Limited Subsidiary Guaranty
of the Obligations pursuant to documentation substantially in the form of
Exhibit F hereto, but in no event shall the Borrower or any Restricted
Subsidiary be obligated to guaranty an amount in excess of the Limited
Subsidiary Guaranty Amount. Upon such date that (i) is after January 1, 2001 and
(ii) all Intercompany Notes are pledged and delivered to the Administrative
Agent on behalf of the Lenders to secure the Obligations, the Administrative
Agent shall, on behalf of the Lenders, release, cancel and terminate each
Limited Subsidiary Guaranty. On each Collateral Release Date, the Administrative
Agent shall, on behalf of the Lenders, execute all documentation reasonably
necessary to release, cancel and terminate each Lien on and pledge of each
Intercompany Note executed by any AMFM Entity or any SFX Entity, as applicable,
and return each such Intercompany Note to the Borrower, and release, cancel and
terminate each Limited Subsidiary Guaranty executed by any AMFM Entity or any
SFX Entity, as applicable. Each Lender specifically acknowledges that all
Pledged Intercompany Notes may be released, canceled and terminated (and the
Administrative Agent is hereby authorized to take any action reasonably
necessary to effectuate such release, cancellation and termination) at the
earlier of (a) consent thereto by the Determining Lenders and (b) (i) with
respect to Pledged Intercompany Notes executed by any AMFM Entity, the
Collateral Release Date for the AMFM Entities, and (ii) with respect to Pledged
Intercompany Notes executed by any SFX Entity, the Collateral Release Date for
the SFX Entities. Each Lender additionally specifically acknowledges that each
Limited Subsidiary Guaranty may be released, canceled and terminated (and the
Administrative Agent is hereby authorized to take any action reasonably
necessary to effectuate such release, cancellation and termination) at the
earlier of (a) consent thereto by the Determining Lenders, (b) (i) with respect
to Limited Subsidiary Guaranties executed by any AMFM Entity, the Collateral
Release Date for the AMFM Entities, and (ii) with respect to Limited Subsidiary
Guaranties executed by any SFX Entity, the Collateral Release Date for the SFX
Entities and (c) such date as all Intercompany Notes executed by any AMFM Entity
and any SFX Entity are pledged and delivered to the Administrative Agent on
behalf of Lenders to secure the Obligations.

        Section 5.15 Collateral Sharing and Intercreditor Arrangement. Each
Lender specifically acknowledges that each Limited Subsidiary Guaranty and the
Pledged Intercompany Notes will also secure and guaranty on a pari passu basis
the Original Credit Facility. "Pari passu" basis for the purpose of this Section
5.15 means based on relative outstanding amounts under this Agreement and the
Loan Papers and the Original Credit Facility, on the earlier of the date of
demand (if any) against the Borrower under the Original Credit Facility or the
guarantors under the Limited Subsidiary Guaranties. Notwithstanding the
foregoing, the Borrower also acknowledges and agrees that the collateral and
guaranty sharing among the Lenders and the lenders under the Original Credit
Facility is an issue among those parties only and the Pledged Intercompany Notes
and the Limited Subsidiary Guaranties in their respective amounts may be
exercised in full by the Administrative Agent on behalf of the Lenders and/or on
behalf of the lenders under the Original Credit Facility, but in each case shall
be subject to an intercreditor agreement among such lenders as to the division
of the proceeds. Each Lender specifically authorizes the Administrative Agent to
enter into an intercreditor agreement with the lenders or their agent under the
Original Credit Facility to share such Pledged Intercompany Notes and Limited
Subsidiary Guaranties, such intercreditor

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<PAGE>   89

agreement to be on a pari passu basis and pursuant to other terms acceptable to
the Administrative Agent. The Borrower and each Lender further acknowledges that
any changes to any term or provision to such intercreditor agreement (including
the pari passu basis of division or any termination or release of such
intercreditor agreement) may be executed by the Administrative Agent and become
effective upon the written consent of the Determining Lenders, and shall not
require the consent of the Borrower. The Borrower and each Lender further
authorize the Administrative Agent to take any action reasonably necessary to
effectuate the intent of this Section 5.15.

                                    ARTICLE 6

                              Information Covenants

        So long as any of the Obligations are outstanding and unpaid or any of
the Commitments is outstanding (whether or not the conditions to borrowing have
been or can be fulfilled), the Borrower shall furnish or cause to be furnished
to the Administrative Agent:

        Section 6.1 Quarterly Financial Statements and Information. Within 45
days after the end of each fiscal quarter, consolidated and consolidating
balance sheets of the Borrower and its Subsidiaries as at the end of such
quarter and the related consolidated and consolidating statements of income and
consolidated statements of changes in cash flow for such quarter and for the
elapsed portion of the year ended with the last day of such quarter, all of
which shall be certified by the president or chief financial officer of the
Borrower, to be, in his or her opinion, complete in all material respects and to
present fairly, in accordance with GAAP, the financial position and results of
operations of the Borrower and its Subsidiaries as at the end of and for such
period, and for the elapsed portion of the year ended with the last day of such
period, subject only to normal year-end adjustments.

        Section 6.2 Annual Financial Statements and Information; Certificate of
No Default.

        (a) Within 90 days after the end of each fiscal year, a copy of (i) the
consolidated balance sheet of the Borrower and its Subsidiaries, as of the end
of the current and prior fiscal years and (ii) consolidated statements of
earnings, statements of changes in shareholders' equity, and statements of
changes in cash flow as of and through the end of such fiscal year, all of which
are prepared in accordance with GAAP, and certified by independent certified
public accountants acceptable to the Lenders, whose opinion shall be in scope
and substance in accordance with generally accepted auditing standards and shall
be unqualified.

        (b) Simultaneously with the delivery of the statements required by this
Section 6.2, a letter from the Borrower's public accountants certifying that no
Default was detected during the examination of the Borrower and its Restricted
Subsidiaries, and authorizing the Borrower to deliver such financial statements
and opinion thereon to the Administrative Agent and Lenders pursuant to this
Agreement.

        Section 6.3 Compliance Certificates. At the time financial statements
are furnished pursuant to Sections 6.1 and 6.2 hereof, a certificate of an
Authorized Signatory:

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<PAGE>   90

        (a) setting forth at the end of such period, a calculation of the
Leverage Ratio, as well as certifications and arithmetical calculations required
to establish whether the Borrower and its Restricted Subsidiaries were in
compliance with the requirements of Sections 7.1(b), (c), (d) and (e), 7.9 and
7.10 hereof, which shall be substantially in the form of Exhibit G hereto;

        (b) setting forth the aggregate amount of outstanding Advances under
each of the Loans and Reimbursement Obligations and certifying as to compliance
herewith; and

        (c) stating that, to the best of his or her knowledge after due inquiry,
no Default has occurred as at the end of such period, or if a Default has
occurred, disclosing each such Default and its nature, when it occurred, whether
it is continuing and the steps being taken with respect to such Default.

        Section 6.4 Copies of Other Reports and Notices.

        (a) Promptly upon their becoming available, a copy of (i) all material
reports or letters submitted to the Borrower or any Restricted Subsidiary by
accountants in connection with any annual, interim or special audit, including
without limitation any report prepared in connection with the annual audit
referred to in Section 6.2 hereof, and any other comment letter submitted to
management in connection with any such audit, (ii) each financial statement,
report, notice or proxy statement sent by the Borrower or any Restricted
Subsidiary to stockholders generally, (iii) each regular or periodic report and
any registration statement (other than statements on Form S-8) or prospectus (or
material written communication in respect of any thereof) filed by the Borrower
or any subsidiary with any securities exchange, with the Securities and Exchange
Commission or any successor agency, and (iv) all press releases concerning
material financial aspects of the Borrower or any Restricted Subsidiary;

        (b) Promptly upon becoming aware that (i) the holder(s) of any note(s)
or other evidence of Debt for Borrowed Money or other security of the Borrower
or any Restricted Subsidiary in excess of $10,000,000 in the aggregate has given
notice or taken any action with respect to a breach, failure to perform, claimed
default or event of default thereunder, (ii) any party to any Capitalized Lease
Obligations or any Local Marketing Agreement has given notice or taken any
action with respect to a breach, failure to perform, claimed default or event of
default thereunder, (iii) any occurrence or non-occurrence of any event which
constitutes or which with the passage of time or giving of notice or both could
constitute a material breach by the Borrower or any Restricted Subsidiary under
any material agreement or instrument which could reasonably be expected to
result in a liability in excess of $10,000,000, other than this Agreement to
which the Borrower or any Restricted Subsidiary is a party or by which any of
their properties may be bound, or (iv) any event, circumstance or condition
which could reasonably be expected to have a Material Adverse Effect, a written
notice specifying the details thereof (or the nature of any claimed default or
event of default) and what action is being taken or is proposed to be taken with
respect thereto; provided, however, no notice shall be required to be delivered
hereunder with respect to any event, circumstance or condition set forth in
clause (i), (ii) or (iii) immediately preceding if, in the opinion

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of counsel to the Borrower or such Restricted Subsidiary, there is no reasonable
possibility of an adverse determination with respect to such event, circumstance
or condition;

        (c) Promptly upon receipt thereof, information with respect to and
copies of any notices received from the FCC or any other federal, state or local
regulatory agencies or any tribunal relating to any order, ruling, law,
information or policy that relates to a breach of or noncompliance with the
Communications Act, which in each case could reasonably be expected to result in
the payment of money by the Borrower or any Restricted Subsidiary in an amount
of $10,000,000 or more in the aggregate, or otherwise have a Material Adverse
Effect, or result in the loss or suspension of any Necessary Authorization;
provided, however, no information shall be required to be delivered hereunder
if, in the opinion of counsel to the Borrower or such Restricted Subsidiary,
there is no reasonable possibility of an adverse determination with respect to
such notice;

        (d) Promptly upon receipt from any governmental agency, or any
government, political subdivision or other entity, any material notice,
correspondence, hearing, proceeding or order regarding or affecting the
Borrower, any Subsidiary, or any of their properties or businesses;

        (e) From time to time and promptly upon each request, such data,
certificates, reports, statements, opinions of counsel, documents or further
information regarding the assets, business, liabilities, financial position,
projections, results of operations or business prospects of the Borrower and its
Subsidiaries, as the Administrative Agent or any Lender may reasonably request;
and

        (f) As soon as available, but in any event within three Business Days
following any change in the Senior Unsecured Debt Rating, a Notice of Change of
Senior Unsecured Debt Rating.

        Section 6.5 Notice of Litigation, Default and Other Matters. Prompt
notice of the following events after the Borrower has knowledge or notice
thereof:

        (a) The commencement of all proceedings and investigations by or before
the FCC or any other governmental body, and all actions and proceedings in any
court or before any arbitrator involving claims for damages, fines or penalties
(including punitive damages) in excess of $5,000,000 per claim and $25,000,000
in the aggregate (after deducting the amount with respect to the Borrower or any
Restricted Subsidiary such Person is insured, provided such claim has not been
denied), against or in any other way relating directly to the Borrower, any
Restricted Subsidiary, or any of their properties or businesses; provided,
however, no notice shall be required to be delivered hereunder if, in the
opinion of counsel to the Borrower or such Restricted Subsidiary, there is no
reasonable possibility of an adverse determination in such action or proceeding;

        (b) Promptly upon the happening of any condition or event which
constitutes a Default, a written notice specifying the nature and period of
existence thereof and what action is being taken or is proposed to be taken with
respect thereto; and

        (c) Any material adverse change with respect to the business, assets,
liabilities, financial position, results of operations or prospective business
of the Borrower or any Subsidiary, other than

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changes in the ordinary course of business which have not had and are not likely
to have a Material Adverse Effect.

        Section 6.6 ERISA Reporting Requirements.

        (a) Promptly and in any event (i) within 30 days after the Borrower or
any member of its Controlled Group knows or has reason to know that any ERISA
Event described in clause (a) of the definition of ERISA Event or any event
described in Section 4063(a) of ERISA with respect to any Plan of the Borrower
or any member of its Controlled Group has occurred, and (ii) within 10 days
after the Borrower or any member of its Controlled Group knows or has reason to
know that any other ERISA Event with respect to any Plan of the Borrower or any
member of its Controlled Group has occurred or a request for a minimum funding
waiver under Section 412 of the Code with respect to any Plan of the Borrower or
any member of its Controlled Group, a written notice describing such event and
describing what action is being taken or is proposed to be taken with respect
thereto, together with a copy of any notice of event that is given to the PBGC;

        (b) Promptly and in any event within two Business Days after receipt
thereof by the Borrower or any member of its Controlled Group from the PBGC,
copies of each notice received by the Borrower or any member of its Controlled
Group 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 by
the Borrower or any member of its Controlled Group with the United States
Department of Labor, the Internal Revenue Service or the PBGC, copies of each
annual and other report (including Schedule B thereto) with respect to each
Plan;

        (d) Promptly and in any event within 30 days after receipt thereof, a
copy of any notice, determination letter, ruling or opinion the Borrower or any
member of its Controlled Group receives from the PBGC, the United States
Department of Labor or the Internal Revenue Service with respect to any Plan;

        (e) Promptly, and in any event within 10 Business Days after receipt
thereof, a copy of any correspondence the Borrower or any member of its
Controlled Group receives from the Plan Sponsor (as defined by Section
4001(a)(10) of ERISA) of any Plan concerning potential withdrawal liability
pursuant to Section 4219 or 4202 of ERISA, and a statement from the chief
financial officer of the Borrower or such member of its Controlled Group setting
forth details as to the events giving rise to such potential withdrawal
liability and the action which the Borrower or such member of its Controlled
Group is taking or proposes to take with respect thereto;

        (f) Notification within 30 days of any material increases in the
benefits of any existing Plan which is not a Multiemployer Plan, or the
establishment of any new Plans, or the commencement of contributions to any Plan
to which the Borrower or any member of its Controlled Group was not previously
contributing;

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        (g) Notification within three Business Days after the Borrower or any
member of its Controlled Group knows or has reason to know that the Borrower or
any such member of its Controlled Group has or intends to file a notice of
intent to terminate any Plan under a distress termination within the meaning of
Section 4041(c) of ERISA and a copy of such notice; and

        (h) Promptly after receipt of written notice of commencement thereof,
notice of all actions, suits and proceedings before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, affecting the Borrower or any member of its Controlled Group with
respect to any Plan, except those which, in the aggregate, if adversely
determined could not have a Material Adverse Effect.

                                    ARTICLE 7

                               Negative Covenants

        So long as any of the Obligations are outstanding and unpaid or any of
the Commitments is outstanding (whether or not the conditions to borrowing have
been or can be fulfilled):

        Section 7.1 Debt for Borrowed Money. The Borrower shall not create,
assume, incur or otherwise become or remain obligated in respect of, any Debt
for Borrowed Money, unless at the time such Debt for Borrowed Money is incurred
by the Borrower (a) there exists no Default and (b) no event has occurred and no
circumstance exists, which has had, or will have, a Material Adverse Effect. The
Borrower shall not permit any Restricted Subsidiary to, create, assume, incur or
otherwise become or remain obligated in respect of, or permit to be outstanding,
or suffer to exist any Debt for Borrowed Money, except:

        (a) (i) Debt for Borrowed Money existing on the date hereof described on
        Schedule 7.1 hereto, (ii) acquired Debt for Borrowed Money owed by any
        SFX Entity or any AMFM Entity, provided that (A) such Debt for Borrowed
        Money existed prior to the date of the AMFM Acquisition and the SFX
        Acquisition (as applicable) and (B) was not incurred by such AMFM Entity
        or SFX Entity in anticipation of such Acquisition, (iii) Debt for
        Borrowed Money under the Loan Papers, and refinancings thereof and (iv)
        Debt for Borrowed Money consisting of Guaranties of certain indebtedness
        of the Original Credit Facility by the AMFM/SFX Obligors (so long as the
        Obligations hereunder are guaranteed by identical Guaranties);

        (b) so long as (i) there exists no Default and (ii) no event has
        occurred and no circumstance exists, which has had, or will have, a
        Material Adverse Effect on the date of incurrence thereof, for the
        Restricted Subsidiaries, Capitalized Lease Obligations and Debt for
        Borrowed Money incurred to purchase property, not to exceed, when added
        to all Debt for Borrowed Money incurred or acquired as permitted by
        7.1(e) below, the greater of (A) 10% of Operating Cash Flow for the four
        most recently completed fiscal quarters of the Borrower and (B)
        $200,000,000, in the aggregate outstanding principal amount at any time

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        for all Restricted Subsidiaries (only $50,000,000 of which in the
        aggregate for subsections 7.1(b) and (e) may be secured);

        (c) (i) Debt for Borrowed Money among the Borrower and its Restricted
        Subsidiaries (except until the respective Collateral Release Dates, this
        subsection (i) shall not permit Debt for Borrowed Money owed by any AMFM
        Entity or SFX Entity to the Borrower or any Restricted Subsidiary that
        is not an AMFM Entity or SFX Entity, respectively), and (ii) Debt for
        Borrowed Money owed by the AMFM/SFX Obligors to the Borrower or any
        Restricted Subsidiary evidenced by the Intercompany Notes. For the
        avoidance of doubt, until their respective Collateral Release Dates, the
        AMFM Entities and the SFX Entities can only incur intercompany Debt for
        Borrowed Money under this subsection (c) pursuant to Intercompany Notes;
        however, on and after their respective Collateral Release Dates, the
        AMFM Entities and the SFX Entities will be treated the same as all other
        Restricted Subsidiaries;

        (d) With respect to Restricted Subsidiaries, and so long as (i) there
        exists no Default and (ii) no event has occurred and no circumstance
        exists, which has had, or will have, a Material Adverse Effect on the
        date of incurrence thereof, Debt for Borrowed Money not to exceed 200
        million British pounds pursuant to the More Group Credit Facility; and

        (e) acquired Debt for Borrowed Money owed by any newly acquired
        Restricted Subsidiary (which such Restricted Subsidiary was acquired in
        accordance with the terms of Section 7.5 hereof), provided that (i) such
        Debt for Borrowed Money existed prior to the date of Acquisition, (ii)
        was not incurred by such Restricted Subsidiary in anticipation of such
        Acquisition and (iii) all such acquired Debt for Borrowed Money of
        Restricted Subsidiaries does not exceed, when added to all Debt for
        Borrowed Money incurred or acquired as permitted by 7.1(b) above, the
        greater of (A) 10% of Operating Cash Flow for the four most recently
        completed fiscal quarters of the Borrower and (B) $200,000,000, in the
        aggregate outstanding principal amount at any time for all Restricted
        Subsidiaries (only $50,000,000 of which in the aggregate for subsections
        7.1(b) and (e) may be secured).

        Section 7.2 Liens. The Borrower shall not, and shall not permit any
Restricted Subsidiary to, create, assume, incur, permit or suffer to exist,
directly or indirectly, any Lien on any of its assets, whether now owned or
hereafter acquired, except Permitted Liens and Liens on Intercompany Notes
securing obligations under the Original Credit Facility (so long as the
Obligations hereunder are secured by identical Liens). The Borrower shall not,
and shall not permit any Restricted Subsidiary to, agree with any other Person
that it shall not create, assume, incur, permit or suffer to exist or to be
created, assumed, incurred or permitted to exist, directly or indirectly, any
Lien on any of its assets.

        Section 7.3 Investments. The Borrower shall not, and shall not permit
any Subsidiary to, make or acquire any Investment, except (a) existing
Investments described on Schedule 7.3 hereto or valued at less than $500,000 in
the aggregate on the Closing Date, (b) Investments in cash equivalents, (c)
Investments in the form of Intercompany Notes in accordance with the terms of
Section 5.14 hereof and (d) Investments in the Borrower and its Restricted
Subsidiaries (except (i) all AMFM Entities, until their

                                       89
<PAGE>   95

respective Collateral Release Date and (ii) all SFX Entities, until their
respective Collateral Release Date) or Investments by any AMFM Entity or SFX
Entity in any other AMFM Entity or SFX Entity, respectively, provided that,
notwithstanding the foregoing, so long as (A) there exists no Default and (B) no
event has occurred and no circumstance exists, which has had, or will have, a
Material Adverse Effect on the date such Investment is made, the Borrower or
such Subsidiary may make Investments in any business (Capital Stock or assets)
described in Section 5.2(a) hereof (except (i) all AMFM Entities, until their
respective Collateral Release Date and (ii) all SFX Entities, until their
respective Collateral Release Date).

        Section 7.4 Amendment and Waiver. Other than as provided in Section 7.5
herein, the Borrower shall not, and shall not permit any Restricted Subsidiary
to, enter into any amendment of any material term or material provision of its
articles of incorporation or by-laws.

        Section 7.5 Liquidation, Disposition or Acquisition of Assets, Merger,
New Subsidiaries. The Borrower shall not, and shall not permit any Restricted
Subsidiary to, at any time:

                (a) liquidate or dissolve itself (or suffer any liquidation or
        dissolution) or otherwise wind up; or sell, lease, abandon, transfer or
        otherwise dispose of all or any part of its assets, properties or
        business, other than immaterial assets sold in the ordinary course of
        business, or dispositions;

                (b) make any Acquisition, provided, however, so long as (i)
        there shall exist no Default prior to and after giving effect to a
        proposed transaction and (ii) no event has occurred and no circumstance
        exists, which has had, or will have, a Material Adverse Effect on the
        date of such transaction, the Borrower or any Restricted Subsidiary may,
        consummate an Acquisition of another Person, so long as in each case:

                        (A) such assets, property or business shall be in or
                relate to the communications or media related business, or the
                entertainment and internet businesses or related businesses,

                        (B) the Administrative Agent shall have received copies
                of all documents, instruments, opinions and other information
                relating to the seller and assets to be acquired as it may
                reasonably request; and

                        (C) immediately after giving effect to any such
                Acquisition, (I) all such acquired Debt for Borrowed Money of
                the Restricted Subsidiaries shall comply with Section 7.1(e)
                hereof, and (II) the Borrower shall be in compliance with
                Section 7.5(c) below.

        (c) enter into any merger or consolidation, provided, however, that, so
long as there shall exist no Default prior to or after giving effect to a
proposed transaction, (i)(A) a Restricted Subsidiary may merge or consolidate
with another Restricted Subsidiary; (B) an Unrestricted Subsidiary may merge or
consolidate with another Unrestricted Subsidiary or a Restricted Subsidiary; and
(C) an Unrestricted Subsidiary or a Restricted Subsidiary may merge or
consolidate

                                       90
<PAGE>   96

with the Borrower provided, that the Borrower or such Restricted Subsidiary
shall be the surviving entity of any transaction governed by this Section
7.5(c)(i); and (ii) the Borrower or any Restricted Subsidiary may merge or
consolidate with another Person, so long as (A) the Borrower or a Restricted
Subsidiary shall be the surviving entity, (B) no event has occurred and no
circumstance exists, which has had, or will have, a Material Adverse Effect on
the date of such transaction and (C) the Administrative Agent shall have
received copies of all information related thereto as it may reasonably request.

        Section 7.6 Dividends. The Borrower shall not, and shall not permit any
Subsidiary to, directly or indirectly declare or pay any Dividend; provided,
however, (a) any Subsidiary may declare and pay Dividends to the Borrower or any
Restricted Subsidiary (and to any minority holders of its capital stock so long
as the Borrower or a Restricted Subsidiary receives Dividends that are at least
on a pro rata basis) and (b) the Borrower may declare and pay Dividends
(including amounts which become Dividends as a result of the proviso in the
definition of Dividends) on any date; provided, however, notwithstanding clause
(b) immediately preceding to the contrary, the Borrower shall pay no such
Dividends unless there shall exist no Default prior to or after giving effect to
any such proposed Dividend.

        Section 7.7 Affiliate Transactions. The Borrower shall not, and shall
not permit any Subsidiary to, at any time engage in any transaction with an
Affiliate (other than any of the Borrower and its Restricted Subsidiaries), nor
make an assignment or other transfer of any of its assets or properties to any
Affiliate, on terms materially less advantageous to the Borrower or Subsidiary
than would be the case if such transaction had been effected with a
non-Affiliate (other than advances to employees in the ordinary course of
business). The Borrower shall not, and shall not permit any Subsidiary to, in
any event incur or suffer to exist any Debt for Borrowed Money or Guaranty in
favor of any Affiliate, unless such Affiliate shall subordinate the payment and
performance thereof on terms satisfactory to the Lenders in their sole
discretion, and otherwise upon terms, conditions and documentation, and in a
manner satisfactory to Determining Lenders. Notwithstanding the foregoing, the
Borrower may loan the proceeds of Advances under the Loans to Subsidiaries that
are Restricted Subsidiaries, so long as there shall exist no Default prior to or
after giving effect to such proposed loan.

        Section 7.8 Compliance with ERISA. The Borrower shall not, and shall not
permit any Subsidiary to, directly or indirectly, or permit any member of its
Controlled Group to directly or indirectly, (a) terminate any Plan so as to
result in any material (in the opinion of the Determining Lenders) liability to
the Borrower or any member of its Controlled Group, (b) permit to exist any
ERISA Event, or any other event or condition which presents the risk of a
material (in the opinion of the Determining Lenders) liability of the Borrower
or any member of its Controlled Group, (c) make a complete or partial withdrawal
(within the meaning of Section 4201 of ERISA) from any Multiemployer Plan so as
to result in any material (in the opinion of the Determining Lenders) liability
to the Borrower or any member of its Controlled Group, (d) enter into any new
Plan or modify any existing Plan so as to increase its obligations thereunder
except in the ordinary course of business consistent with past practice which
could result in any material (in the opinion of the Determining Lenders)
liability to the Borrower or any member of its Controlled Group, or (e) permit

                                       91
<PAGE>   97

the present value of all benefit liabilities, as defined in Title IV of ERISA,
under each Plan of the Borrower or any member of its Controlled Group (using the
actuarial assumptions utilized by the PBGC upon termination of a plan) to
materially (in the opinion of the Determining Lenders) exceed the fair market
value of Plan assets allocable to such benefits all determined as of the most
recent valuation date for each such Plan.

        Section 7.9 Leverage Ratio. At the end of each fiscal quarter occurring
during the periods indicated below, the Borrower shall not permit the Leverage
Ratio to be greater than:

<TABLE>
<CAPTION>
                      Period                              Ratio
                      ------                              -----
<S>                                                       <C>
        From date hereof through June 29, 2001            6.00 to 1

        June 30, 2001 through June 29, 2003               5.50 to 1

        June 30, 2003 and thereafter                      5.00 to 1
</TABLE>

        Section 7.10 Interest Coverage Ratio. At the end of each fiscal quarter,
the Borrower shall not permit the ratio of (a) Operating Cash Flow for the four
consecutive fiscal quarters then ending to (b) Interest Expense of the Borrower
and its Subsidiaries for such quarters, to be less than 2.00 to 1.00.

        Section 7.11 Sale and Leaseback. The Borrower shall not, and shall not
permit any Restricted Subsidiary to, enter into any arrangement whereby it sells
or transfers any of its assets, and thereafter rents or leases such assets.

        Section 7.12 Sale or Discount of Receivables. The Borrower shall not,
and shall not permit any Restricted Subsidiary to, directly or indirectly sell,
with or without recourse, for discount or otherwise, any notes or accounts
receivable.

        Section 7.13 Business of Clear Channel Television Licenses, Inc. and
Clear Channel Broadcasting Licenses, Inc. Notwithstanding anything in this
Agreement to the contrary, the Borrower shall not permit Clear Channel
Television Licenses, Inc. and Clear Channel Broadcasting Licenses, Inc. to
engage in any business other than the ownership of (i) FCC licenses and
Necessary Authorizations for the operation of Clear Channel Television, Inc. and
Clear Channel Broadcasting, Inc., respectively, and (ii) at least 95% of the
Capital Stock of Clear Channel Television, Inc. and 100% of the Capital Stock of
Clear Channel Broadcasting, Inc., respectively.

        Section 7.14 Other Restrictive Agreements. The Borrower shall not, and
shall not permit any Restricted Subsidiary to, enter into any agreement pursuant
to which the ability of the Borrower or any Restricted Subsidiary to (a) accept
any waiver or consent with respect to any provision of this Agreement or any
Loan Paper, or (b) enter into any amendment, amendment and restatement,
replacement or other substitution of this Agreement or any Loan Paper, is
prohibited or limited in any manner, or causes an event material and adverse to
the Borrower.

                                       92
<PAGE>   98

                                    ARTICLE 8

                                     Default

        Section 8.1 Events of Default. Each of the following shall constitute an
Event of Default, whatever the reason for such event, and whether voluntary,
involuntary, or effected by operation of law or pursuant to any judgment or
order of any court or any order, rule or regulation of any governmental or
non-governmental body:

        (a) Any representation or warranty made under any Loan Paper shall prove
to have been incorrect or misleading in any material respect when made;

        (b) The Borrower shall default in the payment of (i) any interest or any
fees payable hereunder or any other costs, fees, expenses or other amounts
payable hereunder or under the Loan Papers, when due, which Default is not cured
within three Business Days from the date such payment became due by payment of
such late amount, or (ii) any principal when due;

        (c) The Borrower or any Restricted Subsidiary shall default in the
performance or observance of any agreement or covenant contained in Article 7
hereof;

        (d) The Borrower or any Restricted Subsidiary shall default in the
performance or observance of any other agreement or covenant contained in this
Agreement not specifically referred to elsewhere in this Section 8.1, and such
default shall not be cured within a period of 30 days after the earlier of (i)
written notice from the Administrative Agent thereof and (ii) actual notice
thereof by any member of senior management of the Borrower;

        (e) There shall occur any default or breach in the performance or
observance of any agreement or covenant (after the expiration of any applicable
grace period) or breach of any representation or warranty contained in any of
the Loan Papers (other than this Agreement);

        (f) There shall be entered a decree or order by a court having
jurisdiction in the premises constituting an order for relief in respect of the
Borrower or any Subsidiary under Title 11 of the United States Code, as now
constituted or hereafter amended, or under any Debtor Relief Law or any other
applicable Federal or state bankruptcy law or other similar law, or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or similar
official of the Borrower or any Subsidiary, or of any substantial part of their
respective properties, or ordering the winding-up or liquidation of the affairs
of the Borrower or any Subsidiary, and any such decree or order shall continue
unstayed and in effect for a period of 60 consecutive days; provided, that the
affected assets alone or in the aggregate total in excess of $25,000,000;

        (g) The Borrower or any Subsidiary shall file a petition, answer or
consent seeking relief under Title 11 of the United States Code, as now
constituted or hereafter amended, or under any

                                       93
<PAGE>   99

Debtor Relief Law or any other applicable Federal or state bankruptcy law or
other similar law, or the Borrower or any Subsidiary shall consent to the
institution of proceedings thereunder or to the filing of any such petition or
to the appointment or taking of possession of a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Borrower or
any Subsidiary or of any substantial part of their respective properties, or the
Borrower or any Subsidiary shall fail generally to pay its debts as they become
due, or the Borrower or any Subsidiary shall take any action in furtherance of
any such action; provided, that the affected assets alone or in the aggregate
total in excess of $25,000,000;

        (h) A final judgment or judgments shall be entered by any court against
the Borrower or any Subsidiary for the payment of money which exceeds
$25,000,000 in the aggregate, or a warrant of attachment or execution or similar
process shall be issued or levied against property of the Borrower or any
Subsidiary which, together with all other such property of the Borrower and its
Subsidiaries subject to other such process, exceeds in value $25,000,000 in the
aggregate, and if such judgment or award is not insured or, within 30 days after
the entry, issue or levy thereof, such judgment, warrant or process shall not
have been paid or discharged or stayed pending appeal, or if, after the
expiration of any such stay, such judgment, warrant or process shall not have
been paid or discharged;

        (i) With respect to any Plan of the Borrower or any member of its
Controlled Group: (i) the Borrower, any such member, or any other
party-in-interest or disqualified person shall engage in transactions which in
the aggregate would reasonably result in a direct or indirect liability to the
Borrower or any member of its Controlled Group in excess of $25,000,000 under
Section 409 or 502 of ERISA or Section 4975 of the Code; (ii) the Borrower or
any member of its Controlled Group shall incur any accumulated funding
deficiency, as defined in Section 412 of the Code, in the aggregate in excess of
$25,000,000, or request a funding waiver from the Internal Revenue Service for
contributions in the aggregate in excess of $25,000,000; (iii) the Borrower or
any member of its Controlled Group shall incur any withdrawal liability in the
aggregate in excess of $25,000,000 as a result of a complete or partial
withdrawal within the meaning of Section 4203 or 4205 of ERISA; (iv) the
Borrower or any member of its Controlled Group shall fail to make a required
contribution by the due date under Section 412 of the Code or Section 302 of
ERISA which would result in the imposition of a lien under Section 412 of the
Code or Section 302 of ERISA; (v) the Borrower, any member of its Controlled
Group or any Plan sponsor shall notify the PBGC of an intent to terminate, or
the PBGC shall institute proceedings to terminate, or the PBGC shall institute
proceedings to terminate, any Plan; (vi) a Reportable Event shall occur with
respect to a Plan, and within 15 days after the reporting of such Reportable
Event to the Administrative Agent, the Administrative Agent shall have notified
the Borrower in writing that the Determining Lenders have made a determination
that, on the basis of such Reportable Event, there are reasonable grounds for
the termination of such Plan by the PBGC or for the appointment by the
appropriate United States District Court of a trustee to administer such Plan
and as a result thereof an Event of Default shall have occurred hereunder; (vii)
a trustee shall be appointed by a court of competent jurisdiction to administer
any Plan or the assets thereof; (viii) the benefits of any Plan shall be
increased, or the Borrower or any member of its Controlled Group shall begin to
maintain, or begin to contribute to, any Plan, without the prior written consent
of the Determining Lenders; or (ix) any ERISA Event with respect to a Plan shall

                                       94
<PAGE>   100

have occurred, and 30 days thereafter (A) such ERISA Event, other
than such event described in clause (vi) of the definition of ERISA Event
herein, (if correctable) shall not have been corrected and (B) the then present
value of such Plan's benefit liabilities, as defined in Title IV of ERISA, shall
exceed the then current value of assets accumulated in such Plan; provided,
however, that the events listed in subsections (v) through (ix) shall constitute
Events of Default only if, as of the date thereof or any subsequent date, the
maximum amount of liability that the Borrower or any member of its Controlled
Group could incur in the aggregate under Section 4062, 4063, 4064, 4219 or 4023
of ERISA or any other provision of law with respect to all such Plans, computed
by the actuary of the Plan taking into account any applicable rules and
regulations of the PBGC at such time, and based on the actuarial assumptions
used by the Plan, resulting from or otherwise associated with such event exceeds
$25,000,000;

        (j) All or any material portion of the Loan Papers shall be the subject
of any proceeding instituted by any Person other than a Lender (except in
connection with any Lender's exercise of any remedies under the Loan Papers), or
there shall exist any litigation or threatened litigation with respect to all or
any material portion of the Collateral or the Loan Papers, or any of the
Borrower, its Subsidiaries or any of their Affiliates shall challenge in any
manner whatsoever the validity or enforceability of all or any portion of the
Loan Papers; provided, however, that during any such time any such circumstance
shall be bonded or stayed in accordance with Applicable Law and to the
satisfaction of the Determining Lenders, such circumstance shall not be an Event
of Default;

        (k) The Borrower or any Restricted Subsidiary shall default in the
payment of any Debt for Borrowed Money in an aggregate amount of $25,000,000 or
more beyond any grace period provided with respect thereto, or shall default in
the performance of any agreement or instrument under which such Debt for
Borrowed Money is created or evidenced beyond any applicable grace period or an
event shall occur with respect to such Debt for Borrowed Money, if the effect of
such default or event is to permit or cause the holder of such Debt for Borrowed
Money (or a trustee on behalf of any such holder) to cause such Debt for
Borrowed Money to become due prior to its date of maturity or cause such Debt
for Borrowed Money to be prepaid, repurchased or redeemed;

        (l) The Borrower or any Subsidiary shall fail to comply with the
Communications Act, or any rule or regulation promulgated by the FCC, and such
failure could reasonably be expected to have a Material Adverse Effect;

        (m) Any material provision of any Loan Paper shall for any reason cease
to be valid and binding on or enforceable against any party to it (other than
the Administrative Agent or any Lender) in all material respects, or any such
party shall so state in writing;

        (n) Any civil action, suit or proceeding shall be commenced against the
Borrower, or any Subsidiary of the Borrower under any federal or state
racketeering statute (including, without limitation, the Racketeer Influenced
and Corrupt Organization Act of 1970) ("RICO") and such suit shall be adversely
determined by a court of applicable jurisdiction, and which is either
non-appealable or which the Borrower or such Subsidiary has elected not to
appeal; or any criminal

                                       95
<PAGE>   101

action or proceeding shall be commenced against the Borrower, any Subsidiary of
the Borrower under any federal or state racketeering statute (including, without
limitation, RICO); or

        (o) There shall have occurred a Change in Control.

        Section 8.2 Remedies. If an Event of Default shall have occurred and
shall be continuing:

        (a) With the exception of an Event of Default specified in Section
8.1(f) or (g) hereof, the Administrative Agent shall, upon the direction of the
Determining Lenders, terminate any or all of the Commitments and/or declare the
principal of and interest on the Advances under the Loans and all Obligations
and other amounts owed under the Loan Papers to be forthwith due and payable
without presentment, demand, protest or notice of any kind, all of which are
hereby expressly waived, anything in the Loan Papers to the contrary
notwithstanding.

        (b) Upon the occurrence of an Event of Default specified in Section
8.1(f) or (g) hereof, such principal, interest and other amounts shall thereupon
and concurrently therewith become due and payable and all of the Commitments
shall forthwith terminate, all without any action by the Administrative Agent,
any Lender or any holders of any portion of the Obligation and without
presentment, demand, protest or other notice of any kind, all of which are
expressly waived, anything in the Loan Papers to the contrary notwithstanding.

        (c) If any Letter of Credit shall be then outstanding, the
Administrative Agent may (or, upon the direction of the Facility Determining
Lenders, shall) demand upon the Borrower to, and forthwith upon such demand, the
Borrower shall, pay to the Administrative Agent in same day funds at the office
of the Administrative Agent on such demand for deposit in the L/C Cash
Collateral Account, an amount equal to the maximum amount available to be drawn
under the Letters of Credit then outstanding; provided, however, that upon the
occurrence of an Event of Default pursuant to Section 8.1(f) or 8.1(g) hereof,
such amount shall become immediately due and payable without the requirement of
any action on the part of Administrative Agent.

        (d) The Administrative Agent, and the Lenders may exercise all of the
post-default rights granted to them under the Loan Papers or under Applicable
Law.

        (e) The rights and remedies of the Administrative Agent and the Lenders
hereunder shall be cumulative, and not exclusive.

                                    ARTICLE 9

                            Changes in Circumstances

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<PAGE>   102

        Section 9.1 LIBOR Basis Determination Inadequate. If with respect to any
proposed LIBOR Advance for any Interest Period, any Lender determines that (i)
deposits in dollars (in the applicable amount) are not being offered to that
Lender in the relevant market for such Interest Period or (ii) the LIBOR Basis
for such proposed LIBOR Advance does not adequately cover the cost to such
Lender of making and maintaining such proposed LIBOR Advance for such Interest
Period, such Lender shall forthwith give notice thereof to the Borrower,
whereupon until such Lender notifies the Borrower that the circumstances giving
rise to such situation no longer exist, the obligation of such Lender to make
LIBOR Advances shall be suspended.

        Section 9.2 Offshore Basis Determination Inadequate. If with respect to
any proposed Offshore Advance for any Interest Period, (i) any Revolving Credit
Lender determines that deposits in Dollars or an Approved Offshore Currency (in
the applicable amount) are not being offered to that Lender in the relevant
market for such Interest Period or (ii) the Facility Determining Lenders
determine that the Offshore Dollar Rate or Approved Offshore Currency Rate, as
appropriate, for such proposed Offshore Advance does not adequately cover the
cost to such Lender of making and maintaining such proposed Offshore Advance for
such Interest Period or the conversion into Dollars of any Approved Offshore
Currency is commercially impracticable, such Lender shall forthwith give notice
thereof to the Borrower, whereupon until such Lender notifies the Borrower that
the circumstances giving rise to such situation no longer exist, the obligation
of such Lender to make new Offshore Advances in the applicable Approved Offshore
Currency shall be suspended.

        Section 9.3 Illegality. If any applicable law, rule or regulation, or
any change therein or adoption thereof, or interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any Lender
(or its applicable Lending Office) with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency, shall make it unlawful or impossible for such Lender (or any of its
Lending Offices) to make, maintain or fund its LIBOR Advances or any type of
Offshore Advances, or shall limit the convertibility into Dollars of any
Approved Offshore Currency (or make such conversion commercially impracticable),
such Lender shall so notify the Borrower and the Administrative Agent. Before
giving any notice to the Borrower pursuant to this Section, the notifying Lender
shall designate a different Lending Office or other lending office if such
designation will avoid the need for giving such notice and will not, in the sole
judgment of the Lender, be materially disadvantageous to the Lender. Upon
receipt of such notice, notwithstanding anything contained in Article 2 hereof,
the Borrower shall repay in full the then outstanding principal amount of each
affected LIBOR Advance and/or Offshore Advance, as applicable, owing to the
notifying Lender, together with accrued interest thereon, on either (a) the last
day of the Interest Period applicable to such Advance, if the Lender may
lawfully continue to maintain and fund such Advance to such day, or (b)
immediately, if the Lender may not lawfully continue to fund and maintain such
Advance to such day. Concurrently with repaying each affected LIBOR Advance
and/or Offshore Advance owing to such Lender, notwithstanding anything contained
in Article 2 hereof, the Borrower shall borrow a Base Rate Advance from such
Lender, and such Lender shall make such Base Rate Advance, in an amount such
that the outstanding principal amount of the Advances owing to such Lender shall
equal the outstanding principal amount of the Advances owing immediately prior
to such repayment.

                                       97
<PAGE>   103

        Section 9.4 EMU Changes.

        (a) If, as a result of the implementation of EMU, (i) any currency
available for borrowing under this Agreement (a "national currency") ceases to
be lawful currency of the state issuing the same and is replaced by the Euro or
(ii) any national currency and the Euro are at the same time both recognized by
the central bank or comparable governmental authority of the state issuing such
currency as lawful currency of such state and the Administrative Agent or the
Facility Determining Lenders shall so request in a notice delivered to the
Borrower, then any amount payable hereunder by any party hereto in such national
currency (including, without limitation, any Advance to be made under this
Agreement) shall instead be payable in the Euro and the amount so payable shall
be determined by redenominating or converting such amount into the Euro at the
exchange rate officially fixed by the European Central Bank for the purpose of
implementing the EMU, provided, that to the extent any EMU Legislation provides
that an amount denominated either in the Euro or in the applicable national
currency can be paid either in Euros or in the applicable national currency,
each party to this Agreement shall be entitled to pay or repay such amount in
Euros or in the applicable national currency. Prior to the occurrence of the
event or events described in clause (i) or (ii) of the preceding sentence, each
amount payable hereunder in any such national currency will, except as otherwise
provided herein, continue to be payable only in that national currency.

        (b) The Borrower shall from time to time, at the request of the
Administrative Agent pay to the Administrative Agent for the account of each
Lender the amount of any cost or increased cost incurred by, or of any reduction
in any amount payable to or in the effective return on its capital to, or of
interest or other return foregone by, such Lender or any holding company of such
Lender as a result of the introduction of, changeover to or operation of the
Euro in any applicable jurisdiction.

        (c) In addition, this Agreement (including, without limitation, the
definition of Approved Offshore Currency Rate) will be amended to the extent
determined by the Administrative Agent (acting reasonably and in consultation
with the Borrower) to be necessary to reflect such implementation of EMU and
replacement of any national currency by the Euro and to put the Lenders and the
Borrower in the same position, so far as possible, that they would have been in
if such implementation and change in currency had not occurred. Except as
provided in the foregoing provisions of this Section, no such implementation or
replacement of any national currency by the Euro nor any economic consequences
resulting therefrom shall (i) give rise to any right to terminate prematurely,
contest, cancel, rescind, alter, modify or renegotiate the provisions of this
Agreement or (ii) discharge, excuse or otherwise affect the performance of any
obligations of any parties to this Agreement or other Loan Papers.

        Section 9.5 Increased Costs.

        (a) If any applicable law, rule or regulation, or any change in or
adoption of any law, rule or regulation, or any interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof or compliance

                                       98
<PAGE>   104

by any Lender (or any of its Lending Offices) with any request or directive
(whether or not having the force of law) of any such authority, central bank or
compatible agency:

                (i) shall subject a Lender (or its applicable Lending Office) to
        any tax, duty or other charge (net of any tax benefit engendered
        thereby) with respect to its LIBOR Advances and/or any type of Offshore
        Advances, or its obligation to make such Advances, or shall change the
        basis of taxation of payments to a Lender (or its applicable Lending
        Office) of the principal of or interest on its LIBOR Advances and/or
        such Offshore Advances or in respect of any other amounts due under this
        Agreement, as the case may be, or its obligation to make such Advances
        (except for changes in the rate of tax on the overall net income of the
        Lender or any of its Lending Offices and franchise taxes imposed upon
        such Lender); or

                (ii) shall impose, modify or deem applicable any reserve
        (including, without limitation, any imposed by the Board of Governors of
        the Federal Reserve System), special deposit or similar requirement
        against assets of, deposits with or for the account of, or credit
        extended by, Lender's applicable Lending Office, or shall impose on any
        Lender (or its applicable Lending Office) or on the United States market
        for LIBOR Advances, or on the London interbank market, or any other
        condition affecting its LIBOR Advances and/or its Offshore Advances, or
        its obligation to make such Advances;

and the result of any of the foregoing is to increase the cost to a Lender (or
any of its Lending Offices) of making or maintaining any LIBOR Advances and/or
Offshore Advances, or to reduce the amount of any sum received or receivable by
a Lender (or its applicable Lending Office) with respect thereto, by an amount
deemed by a Lender to be material, then, within 15 days after demand by a
Lender, the Borrower agrees to pay to such Lender such additional amount as will
compensate such Lender for such increased costs or reduced amounts. The affected
Lender will as soon as practicable notify the Borrower of any event of which it
has knowledge, occurring after the date hereof, which will entitle such Lender
to compensation pursuant to this Section and will designate a different Lending
Office or other lending office if such designation will avoid the need for, or
reduce the amount of, such compensation and will not, in the sole judgment of
the affected Lender made in good faith, be disadvantageous to such Lender.

        (b) A certificate of any Lender claiming compensation under this Section
and setting forth the additional amounts to be paid to it hereunder and
calculations therefor shall be conclusive in the absence of manifest error. In
determining such amount, a Lender may use any reasonable averaging and
attribution methods. If a Lender demands compensation under this Section, the
Borrower may at any time, upon at least five Business Days' prior notice to the
Lender, after reimbursement to the Lender by the Borrower in accordance with
this Section of all costs incurred, prepay in full the then outstanding LIBOR
Advances and/or Offshore Advances of the Lender, together with accrued interest
thereon to the date of prepayment, along with any reimbursement required under
Section 2.9 hereof. Concurrently with prepaying any such affected LIBOR Advances
and/or Offshore Advances, and notwithstanding any provision in Article 2 hereof,
the Borrower shall borrow a Base Rate Advance from the Lender, and the Lender
shall make such Base Rate Advance, in an amount such that the outstanding
principal amount of the Advances owing to such Lender shall

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equal the outstanding principal amount of the Advances owing immediately prior
to such prepayment.

        Section 9.6 Effect On Base Rate Advances. If notice has been given
pursuant to Section 9.1, 9.3, 9.4 or 9.5 hereof suspending the obligation of a
Lender to make LIBOR Advances or requiring LIBOR Advances of a Lender to be
repaid or prepaid, then, unless and until the Lender notifies the Borrower that
the circumstances giving rise to such repayment no longer apply, all Advances
which would otherwise be made by such Lender as LIBOR Advances shall be made
instead as Base Rate Advances.

        Section 9.7 Mandatory Revolver Advance. If notice has been given
pursuant to Section 9.3 hereof suspending the obligations of a majority of
Revolving Credit Lenders to make certain types of or all Offshore Advances or
requiring certain types of or all Offshore Advances of a majority of Revolving
Credit Lenders to be repaid or prepaid, then, unless and until the
Administrative Agent notifies the Borrower that the circumstances giving rise to
such repayment no longer apply, all Offshore Advances which would otherwise be
made by all Revolving Credit Lenders shall be made instead as a Mandatory
Revolver Advance as Base Rate Advances under the Revolving Credit Loan.

        Section 9.8 Capital Adequacy. If either (a) the introduction of or any
change in or in the interpretation of any law, rule or regulation or (b)
compliance by a Lender with any law, rule or regulation or any guideline or
request from any central bank or other governmental authority (whether or not
having the force of law) affects or would affect the amount of capital required
or expected to be maintained by a Lender or any corporation controlling such
Lender (any event or occurrence in clauses (a) or (b) above being a "Regulatory
Modification"), and such Lender reasonably determines that the amount of such
capital is increased by or based upon the existence of such Lender's commitment
or Advances hereunder and other commitments or advances of such Lender of this
type, then, upon demand by such Lender, subject to Section 11.9, the Borrower
shall immediately pay to such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender with respect to
such circumstances (collectively, "Additional Costs"), to the extent that such
Lender reasonably determines in good faith such increase in capital to be
allocable to the existence of such Lender's commitment hereunder.
Notwithstanding the foregoing, any Lender's demand for Additional Costs shall
not include any Additional Costs with respect to any period more than 180 days
prior to the date that such Lender gives notice to the Borrower of such
Additional Costs unless the effective date of the Regulatory Modification which
results in the right to receive Additional Costs is retroactive (the "Regulatory
Modification Retroactive Effective Date"). If any Regulatory Modification has a
Regulatory Modification Retroactive Effective Date and any Lender demands
compensation within 180 days after the date setting the Regulatory Modification
Retroactive Effective Date (the "Regulatory Modification Set Date"), such Lender
shall have the right to receive such Additional Costs from the Regulatory
Modification Retroactive Effective Date. If a Lender does not demand such
Additional Costs within 180 days after the Regulatory Modification Set Date,
such lender may not receive payment of Additional Costs with respect to any
period more than 180 days prior to such demand. A certificate

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as to such amounts submitted to the Borrower by a Lender hereunder, shall, in
the absence of demonstrable error, be conclusive and binding for all purposes.

        Section 9.9 Rights of a Borrower in Respect of Consequential Losses.

        (a) Duty to Mitigate. If (i) any Lender shall request compensation under
Article 9 hereof or (ii) any Lender delivers a notice described in Article 9
hereof, then such Lender shall use reasonable efforts (which shall not require
such Lender to suffer any disadvantage or burden reasonably deemed by it (in
good faith) to be significant, including without limitation, to incur an
unreimbursed loss or unreimbursed cost or expense or otherwise take any action
inconsistent with its internal policies or legal or regulatory restrictions),
promptly thereafter, (x) to file any certificate or document reasonably
requested in writing by the Borrower or (y) to assign its rights and delegate
and transfer its obligations hereunder to another of its offices, branches or
affiliates, if such filing or assignment would reduce its claims for
compensation under Article 9 hereof or enable it to withdraw its notice pursuant
to Article 9 hereof, as the case may be, in the future. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such filing or assignment, delegation and transfer.

        (b) Replacement of a Lender Upon Request for Compensation. If any Lender
has requested compensation or reimbursement in accordance with the terms of
Article 9 hereof and (i) such request is not the result of any uniform changes
in the statutes or regulations for capital adequacy, and (ii) the Borrower and
such Lender are unable to reach a written agreement regarding such request
within 30 days following written notice by such Lender to the Borrower and the
Administrative Agent of such request, then after the expiration of 30 days
following the delivery of the notice under Article 9 hereof, the Borrower may
replace such Lender in whole with another Lender acceptable to the
Administrative Agent pursuant to an Assignment Agreement and in accordance with
Section 11.6(d) hereof, provided that, such Lender is replaced at par value of
all Obligations owing such Lender plus all accrued interest and fees, and
payments in accordance with Section 2.9 hereof, if any, provided further, that
Borrower pays the assignment and acceptance fee set forth in Section 11.6(d)
hereof for such replacement. Until such time as any Lender is replaced by the
Borrower, the Borrower shall reimburse or compensate such Lender in accordance
with the terms of Article 9 hereof.

                                   ARTICLE 10

                             Agreement Among Lenders

        Section 10.1 Agreement Among Lenders. The Lenders agree among themselves
that:

        (a) Administrative Agent. Each Lender hereby appoints the Administrative
Agent as its nominee in its name and on its behalf, to receive all documents and
items to be furnished hereunder; to act as nominee for and on behalf of all
Lenders under the Loan Papers; to take such action as may be requested by
Determining Lenders or Facility Determining Lenders, as appropriate, provided
that,

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unless and until the Administrative Agent shall have received such requests, the
Administrative Agent may take such administrative action, or refrain from taking
such administrative action, as it may deem advisable and in the best interests
of the Lenders; to arrange the means whereby the proceeds of the Advances of the
Lenders are to be made available to the Borrower; to distribute promptly to each
Lender information, requests and documents received from the Borrower, and each
payment (in like funds received) with respect to any of such Lender's Advances,
fee or other amount; and to deliver to the Borrower requests, demands, approvals
and consents received from the Lenders. Administrative Agent agrees to promptly
distribute to each Lender, at such Lender's address set forth below information,
requests, documents and payments received from the Borrower.

        (b) Replacement of Administrative Agent. Should the Administrative Agent
or any successor Administrative Agent ever cease to be a Lender hereunder, or
should the Administrative Agent or any successor Administrative Agent ever
resign as Administrative Agent, or should the Administrative Agent or any
successor Administrative Agent ever be removed with or without cause by the
Determining Lenders, then the Lender appointed by the other Lenders shall
forthwith become the Administrative Agent, and the Borrower and the Lenders
shall execute such documents as any Lender may reasonably request to reflect
such change. If the Administrative Agent also then serves in the capacity of
Swingline Bank, such resignation or removal shall constitute resignation or
removal of the Swingline Bank and the successor Administrative Agent shall serve
in the capacity of such Swingline Bank. Any resignation or removal of the
Administrative Agent or any successor Administrative Agent shall become
effective upon the appointment by the Lenders of a successor Administrative
Agent; provided, however, that if the Lenders fail for any reason to appoint a
successor within 60 days after such removal or resignation, the Administrative
Agent or any successor Administrative Agent (as the case may be) shall
thereafter have no obligation to act as Administrative Agent hereunder.

        (c) Expenses. Each Lender shall pay its pro rata share, based on its
Total Specified Percentage, of any reasonable expenses paid by the
Administrative Agent directly and solely in connection with any of the Loan
Papers if Administrative Agent does not receive reimbursement therefor from
other sources within 60 days after the date incurred, unless payment of such
fees is being diligently disputed by such Lender or the Borrower in good faith.
Any amount so paid by the Lenders to the Administrative Agent shall be returned
by the Administrative Agent pro rata to each paying Lender to the extent later
paid by the Borrower or any other Person on the Borrower's behalf to the
Administrative Agent.

        (d) Delegation of Duties. The Administrative Agent may execute any of
its duties hereunder by or through officers, directors, employees, attorneys or
agents, and shall be entitled to (and shall be protected in relying upon) advice
of counsel concerning all matters pertaining to its duties hereunder.

        (e) Reliance by Administrative Agent. The Administrative Agent and its
officers, directors, employees, attorneys and agents shall be entitled to rely
and shall be fully protected in relying on any writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telex or teletype
message, statement, order, or other document or conversation reasonably believed

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by it or them in good faith to be genuine and correct and to have been signed or
made by the proper Person and, with respect to legal matters, upon opinions of
counsel selected by the Administrative Agent. The Administrative Agent may, in
its reasonable judgment, deem and treat the payee of any note as the owner
thereof for all purposes hereof.

        (f) Limitation of Administrative Agent's Liability. Neither the
Administrative Agent nor any of its officers, directors, employees, attorneys or
agents shall be liable for any action taken or omitted to be taken by it or them
hereunder in good faith and believed by it or them to be within the discretion
or power conferred to it or them by the Loan Papers or be responsible for the
consequences of any error of judgment, except for its or their own gross
negligence or wilful misconduct. Except as aforesaid, the Administrative Agent
shall be under no duty to enforce any rights with respect to any of the
Advances, or any security therefor. The Administrative Agent shall not be
compelled to do any act hereunder or to take any action towards the execution or
enforcement of the powers hereby created or to prosecute or defend any suit in
respect hereof, unless indemnified to its satisfaction against loss, cost,
liability and expense. The Administrative Agent shall not be responsible in any
manner to any Lender for the effectiveness, enforceability, genuineness,
validity or due execution of any of the Loan Papers, or for any representation,
warranty, document, certificate, report or statement made herein or furnished in
connection with any Loan Papers, or be under any obligation to any Lender to
ascertain or to inquire as to the performance or observation of any of the
terms, covenants or conditions of any Loan Papers on the part of the Borrower.
To the extent not reimbursed by the Borrower, each Lender hereby severally, but
not jointly, indemnifies and holds harmless the Administrative Agent, pro rata
according to its Total Specified Percentage, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses and/or disbursements of any kind or nature whatsoever which may
be imposed on, asserted against, or incurred by the Administrative Agent in any
way with respect to any Loan Papers or any action taken or omitted by the
Administrative Agent under the Loan Papers (including any negligent action of
the Administrative Agent), except to the extent the same result from gross
negligence or wilful misconduct by the Administrative Agent.

        (g) Liability Among Lenders. No Lender shall incur any liability (other
than the sharing of expenses and other matters specifically set forth herein and
in the other Loan Papers) to any other Lender, except for acts or omissions in
bad faith.

        (h) Rights as Lender. With respect to its commitment hereunder, the
Advances made by it and any note issued to it, the Administrative Agent shall
have the same rights as a Lender and may exercise the same as though it were not
the Administrative Agent, and the term "Lender" or "Lenders" shall, unless the
context otherwise indicates, include the Administrative Agent in its individual
capacity. The Administrative Agent or any Lender may accept deposits from, act
as trustee under indentures of, and generally engage in any kind of business
with, the Borrower and any of its Affiliates, and any Person who may do business
with or own securities of the Borrower or any of its Affiliates, all as if the
Administrative Agent were not the Administrative Agent hereunder and without any
duty to account therefor to the Lenders.

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        Section 10.2 Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any
other Lender and based upon the financial statements referred to in Sections
4.1(j), 6.1 and 6.2 hereof, and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based upon such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement and the other Loan Papers.

        Section 10.3 Benefits of Article. None of the provisions of this Article
shall inure to the benefit of any Person other than Lenders or the Borrower, as
applicable; consequently, no Person other than Lenders or the Borrower shall be
entitled to rely upon, or to raise as a defense, in any manner whatsoever, the
failure of the Administrative Agent or any Lender to comply with such
provisions.

                                   ARTICLE 11

                                  Miscellaneous

        Section 11.1 Notices.

        (a) All notices and other communications under this Agreement shall be
in writing and shall be deemed to have been given on the date personally
delivered or sent by telecopy (answerback received), or three days after deposit
in the mail, designated as registered mail, return receipt requested,
postage-prepaid, or one day after being entrusted to a reputable commercial
overnight delivery service, or one day after being delivered to the telegraph
office or sent out by telex addressed to the party to which such notice is
directed at its address determined as provided in this Section. All notices and
other communications under this Agreement shall be given to the parties hereto
at the following addresses:

        (i)    If to the Borrower, at:

               Clear Channel Communications, Inc.
               200 East Basse Road
               San Antonio, Texas 78209
               Attn: Randall T. Mays, Executive Vice President/CFO

        (ii)   If to the Administrative Agent, at:

               Bank of America, N.A.
               901 Main Street, 64th Floor
               Dallas, Texas  75202
               Attn:  Thomas E. Carter, Senior Vice President

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        (iii)  If to a Lender, at its address shown below its name on the
               signature pages hereof, or if applicable, set forth in its
               Assignment Agreement.

        (b) Any party hereto may change the address to which notices shall be
directed by giving 10 days' written notice of such change to the other parties.

        Section 11.2 Expenses. The Borrower shall promptly pay:

        (a) all reasonable out-of-pocket expenses of the Administrative Agent,
Syndication Agent and the Issuing Banks in connection with the preparation,
negotiation, execution and delivery of this Agreement and the other Loan Papers,
the transactions contemplated hereunder and thereunder, and the making of
Advances and the issuance of Letters of Credit hereunder, including without
limitation the reasonable fees and disbursements of Special Counsel;

        (b) all reasonable out-of-pocket expenses of the Administrative Agent,
Syndication Agent and the Issuing Banks in connection with the administration of
the transactions contemplated in this Agreement and the other Loan Papers, the
preparation, negotiation, execution and delivery of any waiver, amendment or
consent by the Lenders relating to this Agreement or the other Loan Papers; and

        (c) all reasonable costs, out-of-pocket expenses and attorneys' fees of
the Administrative Agent, Syndication Agent and each Lender incurred for
enforcement, collection, restructuring, refinancing and "work-out", or otherwise
incurred in obtaining performance under the Loan Papers, and all reasonable
costs and out-of-pocket expenses of collection if default is made in the payment
of any of the Obligations, which in each case shall include without limitation
reasonable fees and expenses of consultants, counsel for the Administrative
Agent, Syndication Agent and any Lender, and administrative fees for the
Administrative Agent and Syndication Agent.

        Section 11.3 Waivers. The rights and remedies of the Lenders under this
Agreement and the other Loan Papers shall be cumulative and not exclusive of any
rights or remedies which they would otherwise have. No failure or delay by the
Administrative Agent or any Lender in exercising any right shall operate as a
waiver of such right. The Lenders expressly reserve the right to require strict
compliance with the terms of this Agreement in connection with any funding of a
request for an Advance and each Issuing Bank expressly reserves the right to
require strict compliance with the terms of this Agreement in connection with
any issuance, extension or amendment of a Letter of Credit. In the event that
any Lender decides to fund an Advance or any Issuing Bank decides to issue,
continue or extend any Letter of Credit at a time when the Borrower is not in
strict compliance with the terms of this Agreement, such decision by such Lender
shall not be deemed to constitute an undertaking by the Lender to fund any
further requests for Advances or by any Issuing Bank to issue any additional
Letter of Credit or preclude the Lenders from exercising any rights available
under the Loan Papers or at law or equity. Any waiver or indulgence granted by
the Lenders shall not constitute a modification of this Agreement, except to the
extent expressly provided in such waiver or indulgence, or constitute a course
of dealing by the Lenders at variance with the terms of the Agreement such as to
require further notice by the Lenders of the Lenders' intent to require strict

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adherence to the terms of this Agreement in the future. Any such actions shall
not in any way affect the ability of the Administrative Agent or the Lenders, in
their discretion, to exercise any rights available to them under this Agreement
or under any other agreement, whether or not the Administrative Agent or any of
the Lenders are a party thereto, relating to the Borrower.

        Section 11.4 Determination by the Lenders Conclusive and Binding. Any
material determination required or expressly permitted to be made by the
Administrative Agent or any Lender under this Agreement shall be made in its
reasonable judgment and in good faith, and shall when made, absent manifest
error, be conclusive and binding on all parties.

        Section 11.5 Set-Off. In addition to any rights now or hereafter granted
under Applicable Law and not by way of limitation of any such rights, upon the
occurrence of an Event of Default, each Lender and any subsequent holder of any
portion of the Obligations, and any assignee or participant of any portion of
the Obligations is hereby authorized by the Borrower at any time or from time to
time, without notice to the Borrower or any other Person, any such notice being
hereby expressly waived, to set-off, appropriate and apply any deposits (general
or special (except trust and escrow accounts), time or demand, including without
limitation indebtedness evidenced by certificates of deposit, in each case
whether matured or unmatured) and any other indebtedness at any time held or
owing by such Lender or holder to or for the credit or the account of the
Borrower, against and on account of the Obligations and other liabilities of the
Borrower to such Lender or holder, irrespective of whether or not (a) the Lender
or holder shall have made any demand hereunder, or (b) the Lender or holder
shall have declared the principal of and interest on the Advances and other
amounts due hereunder to be due and payable as permitted by Section 8.2 and
although such obligations and liabilities, or any of them, shall be contingent
or unmatured. Any sums obtained by any Lender or by any assignee, participant or
subsequent holder of any portion of the Obligations shall be subject to pro rata
treatment of all Obligations and other liabilities hereunder.

        Section 11.6 Assignment.

        (a) The Borrower may not assign or transfer any of its rights or
obligations hereunder or under the other Loan Papers without the prior written
consent of the Lenders.

        (b) No Lender shall be entitled to assign its interest in this
Agreement, its notes (if any) or its Advances, except as hereinafter set forth.

        (c) A Lender may at any time sell participations in all or any part of
its Advances (collectively, "Participations") to any bank, other financial
institution or fund ("Participants") provided that such Participation shall not
confer on any Person (other than the parties hereto) any right to vote on,
approve or sign amendments or waivers, or any other independent benefit or any
legal or equitable right, remedy or other claim under this Agreement or any
other Loan Papers, other than the right to vote on, approve, or sign amendments
or waivers or consents with respect to items that would result in (i) any
increase in the commitment of such Participant; or (ii)(A) the extension of the
date of maturity of any amount owed such Participant, or (B) the extension of
the due date for

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any payment of principal, interest or fees respecting, such Participant, or (C)
the reduction of the amount of any installment of principal or interest on
amounts owed such Participant (specifically excluding mandatory prepayments
and/or commitment reductions), or (D) a reduction of the rate of interest on,
the Advances, the Letters of Credit, or the Reimbursement Obligations, or
decrease in Applicable Margin owed such Participant; or (iii) the reduction of
any fees owed such Participant. Notwithstanding the foregoing, the Borrower
agrees that the Participants shall be entitled to the benefits of Article 9 and
Section 11.5 hereof as though they were Lenders (but not to a greater extent
than the Lender from which a Participant received such benefits), the Lenders
may provide copies of all financial information received from the Borrower to
such Participants provided that such Participants comply with Section 11.19
hereof. To the fullest extent it may effectively do so under Applicable Law, the
Borrower agrees that any Participant may exercise any and all rights of banker's
lien, set-off and counterclaim with respect to this Participation as fully as if
such Participant were the holder of the Advances in the amount of its
Participation.

        (d) Each Lender may assign to one or more Eligible Assignees its rights
and obligations under this Agreement and the other Loan Papers all or any
portion of its Applicable Specified Percentage of the corresponding Applicable
Commitment; provided, however, that (i) prior to each such assignment, the
assigning Lender shall provide Administrative Agent and the Borrower with notice
of such assignment, (ii) each such assignment shall be of a constant, and not a
varying, percentage of the Lender's rights and obligations under this Agreement
(provided that a Lender's Applicable Specified Percentage does not have to be
the same with respect to any or all Commitments and a Lender may, subject to the
other provisions of this Section 11.6, assign or retain all or a portion of its
Applicable Specified Percentage in any or all of the Commitments, provided
further, that each Revolving Credit Lender assigning any portion of its rights
and obligations under the Revolving Credit Commitment must assign all or a
portion of its Revolving Credit Loans and Revolving Credit Commitment pro rata
among all the subfacilities thereof), (iii) the amount of the Revolving Credit
Commitment or the Working Line Commitment, and Advances and Reimbursement
Obligations being assigned pursuant to each such assignment (determined as of
the date of the assignment with respect to such assignment) shall in each case
in no event be less than $5,000,000 (unless all of such Commitment is assigned)
and which is an integral multiple of $1,000,000, (iv) the applicable Lender,
Administrative Agent and applicable Eligible Assignee shall execute and deliver
to the Administrative Agent an Assignment and Acceptance Agreement (an
"Assignment Agreement") in substantially the form of Exhibit H hereto, together
with the notes (if any) subject to such assignment, (v) the Eligible Assignee or
the Lender executing the Assignment Agreement as the case may be, shall deliver
to the Administrative Agent a processing fee of $3,500 and (vi) such assignor
shall have received the prior written consent of the Borrower and the
Administrative Agent, which consent shall not be unreasonably withheld or
delayed (provided that without the consent of the Borrower or the Administrative
Agent, any Lender may make assignments to its Bank Affiliates or another
Lender). Upon such execution, delivery and acceptance from and after the
effective date specified in each Assignment Agreement, which effective date
shall be at least three Business Days after the execution thereof, (A) the
Eligible Assignee thereunder shall be party hereto and, to the extent that
rights and obligations hereunder have been assigned to it pursuant to such
Assignment Agreement, have the rights and obligations of a Lender hereunder and
(B) the assigning Lender shall, to the extent that rights and obligations
hereunder have been assigned by it

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pursuant to such Assignment Agreement, relinquish such rights and be released
from such obligations under this Agreement. The Borrower shall not be liable for
any fees or expenses of the Administrative Agent, any Lender, or any Eligible
Assignee, incurred in connection with such an Assignment Agreement.

        (e) Notwithstanding anything in clause (d) above to the contrary, any
Lender may assign and pledge all or any portion of its Loans or Advances and
note (if any) to any Federal Reserve Bank as collateral security pursuant to
Regulation A of F.R.S. Board and any Operating Circular issued by such Federal
Reserve Bank; provided, however, that no such assignment under this clause (e)
shall release the assignor Lender from its obligations hereunder.

        (f) Upon its receipt of an Assignment Agreement executed by a Lender and
an Eligible Assignee, and any note or notes (if any) subject to such assignment,
the Borrower shall, within three Business Days after its receipt of such
Assignment Agreement and at the request of a Lender under Section 2.10(g)
hereof, at its own expense, execute and deliver to the Administrative Agent in
exchange for any surrendered notes, new notes to the order of such Eligible
Assignee in an amount equal to the portion of the Advances, Reimbursement
Obligations and Applicable Commitment assigned to it pursuant to such Assignment
Agreement and new notes to the order of the assigning Lender in an amount equal
to the portion of the Advances and Applicable Commitment retained by it
hereunder. Such new notes (if any) shall be in an aggregate principal amount
equal to the aggregate principal amount of such surrendered notes (if any),
shall be dated the effective date of such Assignment Agreement and shall
otherwise be in substantially the form of Exhibit A, Exhibit B, Exhibit C,
Exhibit D or Exhibit E hereto, as applicable.

        (g) No Lender may, without the prior consent of the Borrower, which
shall not be unreasonably withheld or delayed, in connection with any assignment
or Participation or proposed assignment or Participation pursuant to this
Section 11.6, disclose to the Eligible Assignee or Participant or proposed
Eligible Assignee or Participant, any information (which is not otherwise
publicly available) relating to the Borrower furnished to such Lender by or on
behalf of the Borrower, unless such proposed assignee or participant agrees to
keep such information confidential and signs a confidentiality agreement in a
form substantially similar to the confidentiality agreement signed by the
Administrative Agent and the Syndication Agent. The Borrower may not prohibit
any Participation by withholding its consent pursuant to this Section 11.6(g).

        (h) Except as specifically set forth in this Section 11.6, nothing in
this Agreement or any other Loan Papers, expressed or implied, is intended to or
shall confer on any Person other than the respective parties hereto and thereto
and their successors (which shall include in the case of the Lenders, any entity
resulting from a merger or consolidation) and assignees permitted hereunder and
thereunder any benefit or any legal or equitable right, remedy or other claim
under this Agreement or any other Loan Papers.

        Section 11.7 Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.

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        Section 11.8 Severability. Any provision of this Agreement which is for
any reason prohibited or found or held invalid or unenforceable by any court or
governmental agency shall be ineffective to the extent of such prohibition or
invalidity or unenforceability without invalidating the remaining provisions
hereof in such jurisdiction or affecting the validity or enforceability of such
provision in any other jurisdiction.

        Section 11.9 Interest and Charges. It is not the intention of any
parties to this Agreement to make an agreement in violation of the laws of any
applicable jurisdiction relating to usury. Regardless of any provision in any
Loan Papers, no Lender shall ever be entitled to receive, collect or apply, as
interest on the Obligations, any amount in excess of the Maximum Amount. If any
Lender or participant ever receives, collects or applies, as interest, any such
excess, such amount which would be excessive interest shall be deemed a partial
repayment of principal and treated hereunder as such; and if principal is paid
in full, any remaining excess shall be paid to the Borrower. In determining
whether or not the interest paid or payable, under any specific contingency,
exceeds the Maximum Amount, the Borrower and the Lenders shall, to the maximum
extent permitted under Applicable Law, (a) characterize any nonprincipal payment
as an expense, fee or premium rather than as interest, (b) exclude voluntary
prepayments and the effect thereof, and (c) amortize, prorate, allocate and
spread in equal parts, the total amount of interest throughout the entire term
of the Obligations so that the interest rate is uniform throughout the entire
term of the Obligations; provided, however, that if the Obligations are paid and
performed in full prior to the end of the full contemplated term thereof, and if
the interest received for the actual period of existence thereof exceeds the
Maximum Amount, the Lenders shall refund to the Borrower the amount of such
excess or credit the amount of such excess against the total principal amount of
the Obligations owing, and, in such event, the Lenders shall not be subject to
any penalties provided by any laws for contracting for, charging or receiving
interest in excess of the Maximum Amount. This Section shall control every other
provision of all agreements pertaining to the transactions contemplated by or
contained in the Loan Papers.

        Section 11.10 Headings. Headings used in this Agreement are for
convenience only and shall not be used in connection with the interpretation of
any provision hereof.

        Section 11.11 Amendment and Waiver. This Agreement may not be amended,
modified or waived except by the written agreement of (a) the Borrower and the
appropriate Facility Determining Lenders if such amendment, modification or
waiver solely affects terms and provisions applicable to the Revolving Credit
Lenders or the Working Line Lenders, as applicable, or (b) the Borrower and the
Determining Lenders if any effect of such amendment, modification or waiver is
other than as described in clause (a) above; provided, however, that no such
amendment, modification or waiver shall be made (1) without the consent of each
affected Lender, if it would (A) increase the Applicable Specified Percentage or
Applicable Commitment of such Lender, except in accordance with the terms of
Section 2.18 hereof, (B) extend or postpone any scheduled reduction in any of
the Commitments applicable to such Lender, (C) extend or postpone the date of
(x) any scheduled payment or scheduled maturity of or (y) the scheduled due date
for any payment of principal or interest on, any Advance due to such Lender, (D)
reduce (x) the scheduled amount of any

                                      109
<PAGE>   115

installment of principal or interest on, or (y) the rate of interest on, any
Advance applicable to such Lender, (E) reduce the Reimbursement Obligations
applicable to such Lender, (F) reduce fees or other amounts owing under any Loan
Papers applicable to such Lender, (G) change any provision of Section 2.18(c)
hereof, except to correct any technical errors or make conforming changes, or
(H) revise this Section 11.11 in a manner material and adverse to such Lender,
provided that, in the case of (B), (C) and (D) set forth above, such provisions
specifically do NOT include any mandatory or voluntary prepayment or commitment
reduction which is contingent upon the happening of any event, which may be
waived, consented to or amended by the appropriate Facility Determining Lenders,
or (2) without the consent of all Lenders if it would amend the definition of
Determining Lenders, Facility Determining Lenders or Total Specified Percentage
(except in accordance with the terms of Section 2.18 hereof), or (3) without the
consent of the Administrative Agent and/or the Swingline Bank and/or any Issuing
Bank, if it would alter the rights, duties or obligations of the Administrative
Agent and/or the Swingline Bank and/or any such Issuing Bank, as applicable.
Notwithstanding anything in this Section 11.11, this Agreement or in any Loan
Paper to the contrary, any provision of (i) Section 2.18(b) hereof will require
the consent of the Administrative Agent and the Determining Lenders to amend,
waive or consent to departure from any provision thereof, and (ii) Section
2.18(a) hereof may be amended, waived or any departure therefrom consented to in
writing from time to time by (A) the Borrower, the Administrative Agent and the
Participating Lenders on the date of amendment, consent or waiver collectively
constituting 51% or more of the amount of such increase in the Revolving Credit
Loan, and (B) the Borrower, the Administrative Agent and any Participating
Lender, to the extent any such Participating Lender is taking such action with
respect to any provision individually affecting such Participating Lender.
Neither this Agreement nor any term hereof may be amended orally, nor may any
provision hereof be waived orally but only by an instrument in writing signed by
the Administrative Agent and, in the case of an amendment, by the Borrower and
the appropriate Lenders, Swingline Bank and/or Issuing Banks, as set forth
above.

        Section 11.12 Exception to Covenants. Neither the Borrower nor any
Restricted Subsidiary shall be deemed to be permitted to take any action or fail
to take any action which is permitted as an exception to any of the covenants
contained herein or which is within the permissible limits of any of the
covenants contained herein if such action or omission would result in the breach
of any other covenant contained herein.

        Section 11.13 No Liability of any Issuing Bank. The Borrower assumes all
risks of the acts or omissions of any beneficiary or transferee of any Letter of
Credit with respect to its use of such Letter of Credit. None of the Issuing
Banks nor any Lender nor any of their respective officers or directors shall be
liable or responsible for: (a) the use that may be made of any Letter of Credit
or any acts or omissions of any beneficiary or transferee in connection
therewith; (b) the validity, sufficiency or genuineness of documents, or of any
endorsement thereon, even if such documents should prove to be in any or all
respects invalid, insufficient, fraudulent or forged; (c) payment by any Issuing
Bank against presentation of documents that do not comply with the terms of a
Letter of Credit, including failure of any documents to bear any reference or
adequate reference to the Letter of Credit, except for any payment made upon
such Issuing Bank's gross negligence or willful misconduct; or (d) any other
circumstances whatsoever in making or failing to make payment under

                                      110
<PAGE>   116

any Letter of Credit, except that the Borrower shall have a claim against such
Issuing Bank, and such Issuing Bank shall be liable to the Borrower, to the
extent of any direct, but not consequential, damages suffered by the Borrower
that the Borrower proves were caused by (i) such Issuing Bank's willful
misconduct or gross negligence in determining whether documents presented under
any Letter of Credit comply with the terms of the Letter of Credit or (ii) such
Issuing Bank's willful failure to make lawful payment under a Letter of Credit
after the presentation to it of a draft and certificates strictly complying with
the terms and conditions of the Letter of Credit other than pursuant to the
Uniform Commercial Code Section 5-114. In furtherance and not in limitation of
the foregoing, such Issuing Bank may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary.

        Section 11.14. Conversion of Currencies. If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum owing
hereunder in one currency into another currency, each party hereto agrees, to
the fullest extent that it may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures in the
relevant jurisdiction the first currency could be purchased with such other
currency on the Business Day immediately preceding the date on which final
judgment is given. The obligations of the Borrower in respect of any sum due to
any Lender (the "Applicable Lender") shall, notwithstanding any judgment in a
currency (the "Judgment Currency") other than the currency in which such sum is
stated to be due hereunder (the "Agreement Currency"), be discharged only to the
extent that on the Business Day following receipt by the Applicable Lender of
any sum adjudged to be so due in the Judgment Currency, the Applicable Lender
may in accordance with normal banking procedures in the relevant jurisdiction
purchase the Agreement Currency with the Judgment Currency; if the amount of the
Agreement Currency so purchased is less than the sum originally due to the
Applicable Lender in the Agreement Currency, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the Applicable
Lender against such loss. The obligations of the Borrower contained in this
Section 11.14 shall survive the termination of this Agreement and the payment of
all other amounts owing hereunder.

        Section 11.15 Credit Agreement Governs. In the event of any conflict
between the terms of this Agreement and any terms of any other Loan Paper, the
terms of this Agreement shall control.

        SECTION 11.16 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN PAPERS
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
TEXAS AND THE FEDERAL LAWS OF THE UNITED STATES; PROVIDED, HOWEVER, THAT CHAPTER
346 OF THE TEXAS FINANCE CODE SHALL NOT APPLY TO THE LOANS OR ADVANCES, THIS
AGREEMENT AND THE OTHER LOAN PAPERS. WITHOUT EXCLUDING ANY OTHER JURISDICTION,
THE BORROWER AGREES THAT THE STATE AND FEDERAL COURTS OF TEXAS LOCATED IN
DALLAS, TEXAS SHALL HAVE JURISDICTION OVER PROCEEDINGS IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN PAPERS.

                                      111
<PAGE>   117

        SECTION 11.17 WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY KNOWINGLY VOLUNTARILY, IRREVOCABLY
AND INTENTIONALLY WAIVE, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM ARISING OUT OF OR RELATED TO
ANY OF THE LOAN PAPERS OR THE TRANSACTIONS CONTEMPLATED THEREBY. THIS PROVISION
IS A MATERIAL INDUCEMENT TO EACH LENDER ENTERING INTO THIS AGREEMENT AND MAKING
ANY ADVANCES HEREUNDER.

        SECTION 11.18 ENTIRE AGREEMENT. THIS WRITTEN AGREEMENT, TOGETHER WITH
THE OTHER LOAN PAPERS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

        Section 11.19 Confidentiality. The Administrative Agent and each Lender
shall hold all non-public, proprietary or confidential information (which has
been identified and marked as such by the Borrower) obtained pursuant to the
terms of this Agreement confidential in accordance with their customary
procedures for handling confidential information of this nature and in
accordance with safe and sound banking and investment practices, however, the
Administrative Agent and each Lender may make disclosure of any such information
to (a) their examiners, affiliates, internal and outside counsel, auditors,
consultants, appraisers and other professional advisors, or to any governmental
authority or representative thereof, or in connection with the enforcement of
this Agreement or any related agreement, or pursuant to legal process or with
respect to any litigation, and (b) to any participant, transferee or assignee,
or proposed assignee, transferee or participant, so long as in the case of (b)
foregoing, such participant, transferee or assignee, or proposed assignee,
transferee or participant agrees to keep such information confidential in
accordance with the terms of this provision (which such agreement is not
required to be in writing). In addition, the Administrative Agent and each
Lender may make disclosure of such information to any direct or indirect
contractual counterparty in swap agreements (or to such contractual party's
professional advisors). In no event shall the Administrative Agent or any Lender
be obligated to return any materials furnished to it by the Borrower. The
foregoing provisions shall not apply to the Administrative Agent or any Lender
with respect to any information that (i) is or becomes generally available to
the public (other than through a breach by any of the Administrative Agent or
any Lender of this provision), (ii) is already in the possession of the
Administrative Agent or any Lender on a nonconfidential basis, or (iii) comes
into the possession of or is independently developed by the Administrative Agent
or any Lender in a manner not known to such entity to involve a breach of a duty
of confidentiality owing to the Borrower.

        Section 11.20 Qualified Commercial Loan. This Agreement evidences a
"qualified commercial loan" as that term is defined in Section 306.001 of the
Texas Finance Code, as amended.

                                      112
<PAGE>   118

                   REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

                                      113
<PAGE>   119

        IN WITNESS WHEREOF, this Credit Agreement is executed as of the date
first set forth above.

BORROWER:                               CLEAR CHANNEL COMMUNICATIONS, INC.

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

                                      114
<PAGE>   120

LENDERS:
                                        BANK OF AMERICA, N.A., as a Lender,
                                        Primary Issuing Bank, Swingline Bank and
                                        as Administrative Agent

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

                                        901 Main Street, 64th Floor
                                        Dallas, Texas  75202
                                        Attn:  Derrick Bell
                                        Title: Vice President

Revolving Credit Specified Percentage:  11.083333317%
Working Line Specified Percentage:      11.083333317%
Total Specified Percentage              11.083333317%

                                      115
<PAGE>   121

                                        THE CHASE MANHATTAN BANK, as a Lender
                                        and as Syndication Agent

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

                                        270 Park Avenue, 36th Floor
                                        New York, New York  10017
                                        Attn:  Tracey Ewing
                                        Title: Vice President

Revolving Credit Specified Percentage:  11.083333317%
Working Line Specified Percentage:      11.083333317%
Total Specified Percentage              11.083333317%

                                      116
<PAGE>   122

                                        CITIBANK N.A.

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

                                        399 Park Avenue
                                        8th Floor, Zone 5
                                        New York, New York  10043
                                        Attn:  Julio Ojea-Quintana
                                        Title: Vice President

Revolving Credit Specified Percentage:  8.722222233%
Working Line Specified Percentage:      8.722222233%
Total Specified Percentage              8.722222233%

                                      117
<PAGE>   123

                                        BANKERS TRUST COMPANY, as a Lender and
                                        as a Secondary Issuing Bank

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

                                        Address:
                                        130 Liberty Street Plaza, 27th Floor
                                        New York, New York 10006
                                        Attn:  Gregory P. Shefrin
                                        Title: Principal

Revolving Credit Specified Percentage:  8.722222233%
Working Line Specified Percentage:      8.722222233%
Total Specified Percentage              8.722222233%

                                      118
<PAGE>   124

                                        FLEET NATIONAL BANK

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

                                        1 Federal Street - Mail Code 10303H
                                        Boston, Massachusetts  02110
                                        Attn:  Lisa Pellow
                                        Title: Director

Revolving Credit Specified Percentage:  8.722222233%
Working Line Specified Percentage:      8.722222233%
Total Specified Percentage              8.722222233%

                                      119
<PAGE>   125

                                        CREDIT SUISSE FIRST BOSTON

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

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

                                        Eleven Madison Avenue
                                        10th Floor
                                        New York, New York 10010-3629
                                        Attn: David L. Sawyer
                                        Title: Vice President

Revolving Credit Specified Percentage:  8.333333333%
Working Line Specified Percentage:      8.333333333%
Total Specified Percentage              8.333333333%

                                      120
<PAGE>   126

                                        THE BANK OF NEW YORK, as a Lender and as
                                        a Secondary Issuing Bank

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

                                        One Wall Street
                                        16th Floor South
                                        New York, New York 10286
                                        Attn: John Ciulla
                                        Title: Vice President

Revolving Credit Specified Percentage:  5.000000000%
Working Line Specified Percentage:      5.000000000%
Total Specified Percentage              5.000000000%

                                      121
<PAGE>   127

                                        BARCLAYS BANK PLC

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

                                        388 Market Street, Suite 1700
                                        San Francisco, California  94111
                                        Attn:  Timothy C. Harrington
                                        Title: Director

Revolving Credit Specified Percentage:  5.000000000%
Working Line Specified Percentage:      5.000000000%
Total Specified Percentage              5.000000000%

                                      122
<PAGE>   128

                                        THE DAI-ICHI KANGYO BANK, LTD.

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

                                        One World Trade Center, Suite 4911
                                        New York, New York  10048
                                        Attn:  Dan Guevara
                                        Title: Account Officer

Revolving Credit Specified Percentage:  5.000000000%
Working Line Specified Percentage:      5.000000000%
Total Specified Percentage              5.000000000%

                                      123
<PAGE>   129

                                        FIRST UNION NATIONAL BANK

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

                                        One First Union Center
                                        301 South College Street, 5th Floor
                                        Charlotte, North Carolina 28288-0735
                                        Attn:  Jeffrey M. Graci
                                        Title: Director

Revolving Credit Specified Percentage:  5.000000000%
Working Line Specified Percentage:      5.000000000%
Total Specified Percentage              5.000000000%

                                      124
<PAGE>   130

                                        SUNTRUST BANK

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

                                        200 South Orange Avenue
                                        Orlando, Florida 32801
                                        Attn:  Kimberly Evans
                                        Title:

Revolving Credit Specified Percentage:  5.000000000%
Working Line Specified Percentage:      5.000000000%
Total Specified Percentage              5.000000000%

                                      125
<PAGE>   131

                                        WESTDEUTSCHE LANDESBANK
                                        GIROZENTRALE, NEW YORK BRANCH

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

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

                                        1211 Avenue of the Americas, 25th Floor
                                        New York, New York 10036
                                        Attn:  Cynthia Niesen
                                        Title: Managing Director

Revolving Credit Specified Percentage:  5.000000000%
Working Line Specified Percentage:      5.000000000%
Total Specified Percentage              5.000000000%

                                      126
<PAGE>   132

                                        ABN AMRO BANK N.V.

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

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

                                        Three Riverway, Suite 1700
                                        Houston, Texas  77056
                                        Attn:  Laurie Tuzo
                                        Title: Senior Vice President

Revolving Credit Specified Percentage:  4.166666667%
Working Line Specified Percentage:      4.166666667%
Total Specified Percentage              4.166666667%

                                      127
<PAGE>   133

                                        THE ROYAL BANK OF SCOTLAND PLC

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

                                        88 Pine Street, 26th Floor
                                        Wall Street Plaza
                                        New York, New York 10005
                                        Attn:  Karen Stefancic
                                        Title: Senior Vice President

Revolving Credit Specified Percentage:  3.333333333%
Working Line Specified Percentage:      3.333333333%
Total Specified Percentage              3.333333333%

                                      128
<PAGE>   134

                                        WELLS FARGO BANK TEXAS, NATIONAL
                                        ASSOCIATION

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

                                        111 Congress, Suite 300
                                        Austin, Texas 78701
                                        Attn:  Susan Coulter
                                        Title: Vice President

Revolving Credit Specified Percentage:  1.666666667%
Working Line Specified Percentage:      1.666666667%
Total Specified Percentage              1.666666667%

                                      129
<PAGE>   135

                                        THE MITSUBISHI TRUST AND BANKING
                                        CORPORATION

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

                                        520 Madison Avenue, 26th Floor
                                        New York, New York  10022
                                        Attn:  Paul Arzouian
                                        Title: Vice President

Revolving Credit Specified Percentage:  1.666666667%
Working Line Specified Percentage:      1.666666667%
Total Specified Percentage              1.666666667%

                                      130
<PAGE>   136

                                        THE FROST NATIONAL BANK

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

                                        100 W. Houston T-3
                                        San Antonio, Texas  78205
                                        Attn:  Suzanne Peterson
                                        Title: Senior Vice President

Revolving Credit Specified Percentage:  0.833333333%
Working Line Specified Percentage:      0.833333333%
Total Specified Percentage              0.833333333%

                                      131
<PAGE>   137

                                        SUMMIT BANK

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

                                        301 Carnegie Center
                                        Princeton, New Jersey  08543
                                        Attn:  Mike Cerullo
                                        Title:

Revolving Credit Specified Percentage:  0.833333333%
Working Line Specified Percentage:      0.833333333%
Total Specified Percentage              0.833333333%

                                      132
<PAGE>   138

                                        THE SUMITOMO BANK, LIMITED, NEW YORK
                                        BRANCH

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

                                        277 Park Avenue, 6th Floor
                                        New York, New York 10172
                                        Attn:  Leo Pagarigan
                                        Title: Vice President

Revolving Credit Specified Percentage:  0.833333333%
Working Line Specified Percentage:      0.833333333%
Total Specified Percentage              0.833333333%

                                      133

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