Document:

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                                                                EXHIBIT 10.05.16

                              LAND LEASE AGREEMENT

This agreement is entered into on this 1st day of January, 2000 between, SALEM
MEDIA OF COLORADO, INC. (KRKS) ("Lessee"), and ATSINGER FAMILY TRUST/EPPERSON
FAMILY LIMITED PARTNERSHIP ("Lessor").

                                    ARTICLE I

                                   DEFINITIONS

The terms listed below when spelled with initial capital letters have the
following meanings in this agreement:

         1.1 ADJUSTMENT DATE shall mean the first day of January following the
first anniversary of the Commencement Date and each subsequent first day of
January this Agreement remains in effect.

         1.2 AGREEMENT means this Land Lease Agreement, including the schedules
and any other executed attachments and/or addenda all of which are made part of
this Agreement.

         1.3 ANTENNA means the structure, supporting structures including
foundations and guy wires, cabling, ground systems and all other equipment
related to the tower system as set forth in Section 5.1 hereof.

         1.4 ARTICLE or ARTICLES means one or more of the articles of this
Agreement.

         1.5 COMMENCEMENT DATE means 12:01 AM on the date specified in this
Agreement as the Commencement Date of the Initial Term, as hereinafter defined.

         1.6 EQUIPMENT BUILDING means the structure or area provided for the
Transmitters and associated broadcast transmission equipment as designated in
Schedule 5.2 for the limited purpose of constructing, installation, maintenance,
operation, repair or removal of the equipment. Notwithstanding anything in this
Agreement to the contrary, any item to be constructed or installed in the
Equipment Building pursuant to this Agreement shall be paid for, constructed and
maintained by Lessee.

         1.7 EXPIRATION DATE means 11:59 PM on the date specified in this
Agreement as the date on which the Initial Term or any extended term of this
Agreement expires.

         1.8 FACILITIES and FACILITY refer collectively or individually to any
and all Equipment, Cabling, Antenna and/or buildings or other structures
required to be constructed pursuant to Section 5.2 hereof, as the context may
indicate.

         1.9 INITIAL TERM means the period from the Commencement Date to the
date set forth in Section 3.2.

         1.10 LEASED LAND/LESSOR'S PROPERTY means one quarter of section 11,
Township 3 South, Range 68 West of the 6th PM City of Commerce City, County of
Adams, State of Colorado (see Exhibit 1).

         1.11 MONTHLY RENT shall have the meaning as defined in Section 4.2(c)
hereof.

         1.12 RENT means the consideration paid by Lessor to Lessee pursuant to
this Agreement.

         1.13 SCHEDULE or SCHEDULES means one or more schedules attached to this
Agreement.

         1.14 SECTION or SECTIONS means one or more of the sections of this
Agreement.

         1.15 TOWER means within this document the same as Antenna.

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                                   ARTICLE II

                             SCOPE OF THE AGREEMENT

         2.1 LEASE. This Agreement sets forth the terms and conditions under
which Lessor agrees to lease land to the Lessee. Lessee agrees to use the Leased
Land and related rights only in accordance with the terms and conditions of this
Agreement; to comply with all applicable governmental regulations and
requirements of law pertaining to Lessee's activities in or around Lessor's
Property; to pay all fees, charges, costs and expenses in accordance with this
Agreement promptly when due; to keep the Facilities properly maintained; and to
comply in all respects with each of the obligations, duties, rules, conditions,
and requirements applicable to Lessee under this Agreement.

         2.2 NO OTHER USE. Lessee will use the Leased Land solely for operating
the Antenna for its Commercial Broadcast Transmitter site, only for the purpose
and benefit of Salem Media of Colorado, Inc. and lessee will not make any other
use of the Leased Land related rights provided under this Agreement. Lessee
shall not use Lessor's Property or any portion thereof, including the Equipment
Building, for purpose of maintaining the studios, offices or storage of Lessee.

         2.3 NO OTHER RIGHTS. Only the Leased Land and related rights described
in this Agreement are provided under this Agreement. Lessor does not provide any
service or product under this Agreement.

                                   ARTICLE III

                  TERM OF THE AGREEMENT; TERMINATION; RENEWALS

         3.1 COMMENCEMENT DATE. The Commencement Date shall be the date when
Lessee begins construction or when Lessee commences with any part of the
installation on Lessor's property.

         3.2 EXPIRATION DATE. The Expiration Date of this Agreement shall be the
day preceding the Tenth (10th) year anniversary of the Commencement Date, except
that if such date is not the last day of a calendar month, the Expiration Date
of this Agreement shall be the last day of the month in which the Tenth (10th)
anniversary of the Commencement Date falls. If the term has been extended, the
Expiration Date shall be the last day of the term as so extended.

         3.3 TERMINATION BY LAW. Lessor shall have the right to terminate this
Agreement, upon notice to Lessee, and shut down and/or remove Lessee's Antenna,
if:

         (a) This Agreement is required to be terminated by ruling or regulation
         of the Federal Communications Commission ("FCC") or the Federal
         Aviation Administration ("FAA") or by any violation of the
         Communications Act of 1934, as amended, arising out of Lessee's use of
         Leased Land; or

         (b) A final determination, not subject to appeal, of any local, state
         or federal governmental body that Lessee's Facilities or the placement
         and/or operation of Lessee's Facilities is in violation of any laws,
         rules or regulations of any local state or federal agencies including,
         without limitation, any land use provisions and/or any zoning and/or
         planning code; or

         (c) A final determination, not subject to appeal, that Lessee's
         Facilities fail to meet in any material respect the requirements
         imposed by law or the rules and regulations of local, state and federal
         agencies and Lessee shall have failed to cure said matters within ten
         (10) days of such final determination and written notice thereof.

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                                   ARTICLE IV

                            FEES AND CHARGES; BILLING

         4.1 PAYMENT OF RENT. Lessee agrees to pay rent to Lessor, without
notice or demand, from the Commencement Date through the Expiration Date
provided herein, at:

                       Atsinger Family Trust/Epperson Family Limited Partnership
                       c/o Salem Communications Corporation
                       4880 Santa Rosa Road, Suite 300
                       Camarillo, California 93012
                       Attention: Accounting (805-987-0400)

or to such other person or place as Lessor may designate from time to time by
notice to Lessee.

         4.2 RENT.

         (a) Beginning with the Commencement Date, and continuing to the first
         Adjustment Date, the base rent shall be the sum of $60,000.00 per
         annum, payable in equal monthly installments of $5000.00 in advance of
         the first day of each month (and thereafter on each and every
         Adjustment Date the monthly rent shall be computed according to Section
         4.2(b); provided, however, that the installment of the base rent
         payable for the first full month of the term shall be due and payable
         on the full execution and delivery of this Agreement. If the
         Commencement Date and/or Expiration Date occur on a day other than the
         first day of a calendar month, rent shall be prorated for the month in
         which the Commencement Date and/or Expiration Date occurs.

         (b) During the one (1) year period beginning with each Adjustment Date,
         the monthly rent payable by Lessee shall reflect an adjustment, as
         herein provided, for the change, if any, from the year in which the
         Commencement Date falls, in the Consumer Price Index for All Urban
         Consumers [Base Year 1982-84=100] ("CPI") as measured in February and
         published by the United States Department of Labor, Bureau of Labor
         Statistics; i.e., during the one (1) year period beginning with the
         Adjustment Date, the monthly rent shall be the product obtained by
         multiplying the Base Rent times a fraction, the numerator of which
         shall be the CPI for February of the year such Adjustment Date falls
         and the denominator of which shall be the CPI for February of the year
         in which the Commencement Date falls. Notwithstanding the results of
         the foregoing calculation, the annual base rent payable by Lessee
         hereunder shall not in any event be less than 105% of the annual base
         rent payable during the immediately preceding one (1) year period. In
         the event that the Bureau of Labor Statistics shall change the base
         period for the CPI, the new index number shall be substituted for the
         old index number in making the above computation. In the event the
         Bureau of Labor Statistics ceases publishing the CPI, or materially
         changes the method of its computation, Lessor and Lessee shall accept
         comparable statistics on the purchasing power of the consumer dollar as
         published at the time of said discontinuation or change by a
         responsible financial periodical of recognized authority to be chosen
         by Lessor subject to reasonable consent of Lessee.

         (c) As used herein, "Monthly Rent" shall refer to the rent paid by
         Lessee pursuant to this Section 4.2.

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         4.3 ADDITIONAL RENT. Lessee shall pay or reimburse Lessor within ten
(10) days after receipt of a statement from Lessor for all taxes, including
without limitation, real estate taxes, personal property taxes, ad valorem taxes
and special assessments, levied against Lessor which are attributable to Lessee,
or its assigns, as a result of the Facilities, buildings or structures placed or
operated on Lessor's Property by Lessee or services offered by Lessee on
Lessor's Property (but excluding any taxes attributable to Lessor's Property),
which statement shall include, at the request of Lessee, such documentation as
is reasonably necessary to substantiate said amounts. In addition, Lessee shall
pay or reimburse Lessor within ten (10) days after receipt of a statement for
any state or local tax of any kind (except income taxes) arising from or
attributable to this Agreement.

         4.4 NO NOTICE. From and after the Commencement Date, Lessee will pay to
Lessor the Monthly Rent. Said installments are due and payable in advance,
without notice or demand. Although Lessor may, for its own convenience, issue
bills to Lessee, any failure of Lessor to issue a timely bill will not relieve
Lessee of its obligation to pay Monthly Rent without notice or demand.

         4.5 NO SET-OFF. Except as otherwise provided in this Agreement, Lessee
will pay all Rent, fees, costs, and expenses without deduction or set-off of any
kind.

                                    ARTICLE V

                            GRANT OF LAND LEASE USES

         5.1 ANTENNA. Lessor, in consideration of the rents to be paid and the
covenants contained herein, hereby leases to Lessee the right to erect and
maintain a two-tower Antenna Array (hereafter referred to as Antenna) as
generally depicted on Exhibit 1 for the limited purpose of installing,
maintaining, operating, or repairing the Antenna in accordance with this
Agreement, and to pass through portions of the Lessor's Property designated by
Lessor for ingress to and egress from the Antenna Location. All site work for
the use on the Antenna shall be performed by Lessee and at the expense of
Lessee.

         5.2 EQUIPMENT BUILDING. Lessor, in further consideration of the rents
to be paid and covenants contained herein, hereby grants to Lessee the rights to
build and/or use an Equipment Building as reasonably determined by Lessor, for
the limited purpose of installing, maintaining, operating, repairing, or
removing all necessary and required Equipment in accordance with this Agreement;
and to pass through portions of the Lessor's Property designated by Lessor for
ingress to and egress from the Equipment Building. All site work for the use of
the Equipment Building shall be performed by Lessee and at the expense of
Lessee. Notwithstanding anything in this Agreement to the contrary, in the event
Lessee is required by Lessor to construct a permanent building or other
permanent structure on Lessor's Property, at the expiration of the term of this
Agreement, the permanent building and other permanent structures shall, at the
sole election of Lessor, become the property of Lessor.

                                   ARTICLE VI

                           INSTALLATIONS OF FACILITIES

         6.1 SPECIFICATIONS. Lessee shall prepare specifications for Lessee's
Facilities to be constructed and maintained on Lessor's property. All such
specifications shall be based upon information contained in the Schedules hereto
and engineering data furnished by Lessee and may include the requirement of
Lessee to provide, at Lessee's expense, the purchase and installation of such
equipment for protecting Lessor's property.

         6.2 PRIOR APPROVAL. Prior to the initiation by Lessee of the delivery,
installation, replacement, modification or removal of Facilities, Lessee must
obtain the prior written approval of Lessor to Lessee's proposed scheduling of
work and Lessee's choice of vendors and contractors. Lessor, at its sole
discretion and election, may condition said approval on obtaining additional
information and/or requiring schedule changes and substitution of vendors and
contractors. Lessor's approval of any act or action of Lessee or Lessee's
Authorized Personnel pursuant to this Agreement shall not be considered an
endorsement, representation, or warranty regarding the viability of said
scheduling, and/or the ability of said vendor or contractor to perform the work
intended by Lessee. Lessee shall deliver, construct and install the Facilities
in strict conformity with the specifications, schedules, and choice of vendors
and contractors approved by Lessor.

         6.3 DELIVERY & INSTALLATION OF FACILITIES. Lessee shall furnish,
construct and install all Facilities. Physical delivery of the Facilities to
Lessor's property and all installation work performed by Lessee shall be
performed in accordance with the specifications and approvals furnished pursuant
to this Article.

         6.4 LESSEE'S RESPONSIBILITIES. Notwithstanding anything in this
Agreement to the contrary, Lessee has the sole responsibility for any product
liability claims, product warranty claims, delays and service outages of Lessee
that may result from defective Facilities, improper scheduling, improper
installation, or any other matter, irrespective of the cause.

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                                   ARTICLE VII

                               USE OF LEASED SPACE

         7.1 FACILITIES. Lessee may bring the Facilities onto the Leased Land at
Lessee's own risk and expense. Equipment shall be confined to the Equipment
Building and the Antenna shall be confined to the Antenna Location as defined in
Section 5.1.

         7.2 OTHER MATERIALS. In addition to the Facilities, Lessee may bring
onto the Leased Land, at Lessee's own risk and expense (a) any materials and
apparatus specially identified in written engineering specifications approved in
writing by Lessor, and (b) small tools and portable test equipment as needed to
perform Lessee's obligations under this Agreement. Lessee's rights under this
Section 7.2 are subject to the conditions that all such materials, apparatus,
tools, and test equipment will remain at all times in the care, custody, and
control of Lessee's Employees.

         7.3 NEGATIVE COVENANTS. Lessee may not bring onto the Leased Land any
material, apparatus, facilities, tools, or equipment other than those identified
in this Agreement unless Lessee first obtains written permission from Lessor.
Without limiting the foregoing, Lessee is specifically informed that the
following are not permitted within the Leased Land: wet cell batteries,
explosives, flammable liquids or gases, alcohol, controlled substances, weapons,
toxic materials, hazardous waste, pollutants, contaminants, asbestos and
asbestos related products, polychlorinated biphenyl's (PCB's), petroleum, crude
oil or any fraction or distillate thereof, and any similar equipment and/or
materials. Lessee shall not use or permit Lessor's Property to be used by any
dangerous, toxic, noxious, offensive, or unlawful purposes.

                                  ARTICLE VIII

                                 RIGHT OF ENTRY

         8.1 ACCESS. Lessee shall have reasonable access to the Leased Land;
provided access to the Leased Land shall be regulated pursuant to the rules and
regulations described in Section 23.5 and access to Antenna and Equipment
Building may be limited based upon the reasonable discretion of Lessor.

         8.2 AUTHORIZED PERSONNEL. All persons, contractors and/or engineers
installing, maintaining, repairing, removing or otherwise working on the
Facilities shall be approved in advance by Lessor, which approval shall not be
unreasonably withheld. A list ("Authorized Entry List") of those persons,
contractors and/or engineers approved by Lessor shall be maintained by Lessor.
Prior to the Commencement Date, Lessee will submit to Lessor a proposed
"Authorized Entry List". Lessor may request additional information from Lessee
before granting its approval, which approval may not be unreasonably withheld.
Lessee will promptly give notice to Lessor, both orally and in writing, of the
name of any person who ceases to be one of Lessee's employees or agents or whom
Lessee wishes to remove from the "Authorized Entry List".

         8.3 QUALIFIED PERSONNEL. Lessee represents and warrants that on the
date hereof and each and every date prior to the last act to be performed by
Lessee pursuant to this Agreement, including Section 9.2 hereof, Lessee's
Employees and any other person(s) installing, maintaining, repairing, removing
or otherwise working on the Facilities or otherwise on Lessor's Property at the
request or direction of Lessee shall be a technician qualified to perform said
duties and have been trained in compliance with then current OSHA, FCC and ANSI
standards, including such standards relating to radio frequency radiation.

                                   ARTICLE IX

                       PROTECTION OF SERVICE AND PROPERTY

         9.1 CONTINUITY OF USE. The continuity of the use of the land by Lessor
is of paramount importance. Lessee and Lessee's Employees will at all times
exercise the highest degree of care to prevent damages to the Lessor's Property
and to all other real and personal property of Lessor, its customers and other
tenants of Lessor's Property. Lessee and Lessee's Employees will perform any
work and use the Facilities in a manner that will protect all other persons,
structures, equipment, utilities, and/or work areas of any kind against injury,
damage or interruption of service. Lessee and Lessee's Employees will not use
any Facilities, equipment, tools or methods which, in the sole judgment of
Lessor, might endanger or interfere with the services of Lessor.

         9.2 QUIET ENJOYMENT. Except as otherwise set forth in this Agreement,
Lessor shall not alter, make adjustments to, relocate or otherwise modify or
tamper with Lessee's Facilities.

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                                    ARTICLE X

                                   INSPECTION

         10.1 WORK IN PROGRESS. Lessor, its employees and agents may inspect and
observe any work while in progress or after completion to ascertain whether the
work is in accordance with the specifications and requirements of this
Agreement. Lessor may require Lessee to correct any faulty work. However,
inspection or observation by Lessor or by its agents of work performed by Lessee
or Lessee's Employees will not relieve Lessee of full responsibility for the
proper performance of the work.

         10.2 TIME. Lessor, its agent and its designees (including without
limitation building inspectors, fire marshals, and other officials) may inspect
the Leased Land and the Facilities at any time. At Lessee's request, Lessee's
Employees on the Authorized Entry List may accompany Lessor during such
inspections except when, in the sole judgment of Lessor, safety or service
considerations require otherwise.

                                   ARTICLE XI

                                    UTILITIES

         11.1 LESSEE RESPONSIBILITY. Lessee shall be responsible, at Lessee's
sole cost, for obtaining, using and paying for all utility services to the
Leased Land for Lessee's use including, without limitation, electricity,
electricity for proper antenna operations including required FAA obstruction
lighting, elevator, platform tenants, electricity for the building common areas
both inside and outside, including general lighting and receptacles air
conditioning, heat, water, sewer, telephone, waste disposal and gas
(collectively referred to herein as "Utilities").

         11.2 INTERRUPTION. Under no circumstances shall Lessor be liable for
any interruption or failure in the supply of any Utilities to the Leased Land,
nor shall Lessee have any right to an abatement in rent or offset to rent in the
event of any interruption or failure in the supply of any Utilities to the
Leased Land.

                                   ARTICLE XII

                             OWNERSHIP OF FACILITIES

         12.1 RISK OF LOSS. Except as otherwise provided in this Agreement, all
Facilities shall be owned by Lessee, and Lessee shall bear all risk of loss
and/or damage to the Facilities.

         12.2 OWNERSHIP. Any and all Facilities on Lessor's Land, except utility
service and any building or structure installed by Lessee (which, at the
expiration of the term of this Agreement, shall, at the sole election and
discretion of Lessor, be the property of Lessor), shall remain the personal
property of Lessee notwithstanding the fact that it may be affixed or attached
to the realty or Lessor's Property, and shall, subject to all terms and
conditions of this Agreement, during the Agreement, any extension thereof or
upon the termination thereof belong to and be removable by Lessee. All other
machinery, equipment, buildings, structures and trade fixtures attached to
Lessor's Property, shall, upon termination of this agreement, be deemed fixtures
and, at the sole election of Lessor, become the property of Lessor.

                                  ARTICLE XIII

                             MAINTENANCE AND REPAIR

         13.1 FACILITIES. Lessee will, at its own risk and expense, maintain and
repair, including replacement if necessary (collectively referred to as
"Maintenance"), the Antenna, buildings, structures and any other items or things
placed on Lessor's Property by Lessee pursuant to this Agreement. All
Maintenance shall be performed in a manner suitable to Lessor so as not to
conflict with the use of Lessor's Property by Lessor, or any other tenant of
Lessor. All Maintenance shall be provided by qualified technicians, authorized
to enter Lessor's Property pursuant to Section 8.2.

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                                   ARTICLE XIV

                                 NO ALTERATIONS

         14.1 Except as specifically set forth in this Agreement, Lessee may not
make any alterations, additions and/or improvements to any part of the Lessor's
Property, the Leased Land, the Antenna and Equipment without the prior written
consent of the Lessor, which consent shall be given in Lessor's sole discretion.

                                   ARTICLE XV

                REPRESENTATIONS, WARRANTIES AND OTHER OBLIGATIONS

         15.1 LESSOR'S REPRESENTATIONS AND WARRANTIES. Lessor represents and
warrants that:

         (a) The execution, delivery and performance of this Agreement, and the
         consummation of the transactions contemplated hereby, have been duly
         and validly authorized by all necessary actions on the part of Lessor
         and shall not constitute a breach or violation under any agreement to
         which Lessor is a party.

         (b) To the best of Lessor's knowledge, there are no violations of any
         federal, state, county or municipal law, ordinance, order, regulations
         or requirement with respect to the Leased Land, and as of the date of
         this Agreement, no notice of any kind relating thereto (which would
         adversely affect the transactions contemplated by this Agreement) has
         been issued by public authorities having jurisdiction over the Leased
         Land.

         (c) There is no action, suit or proceeding pending or, to Lessor's
         knowledge, threatened against or affecting the Leased Land or any
         portion thereof and Lessor has not received notice, written or
         otherwise, of any litigation affecting or concerning the Leased Land
         relating to or arising out of its ownership, management, use or
         operation.

         (d) Lessor's Property is and will remain in material compliance at all
         times during the Term of this agreement with all federal, state,
         county, municipal, local, administrative and other governmental laws,
         statutes, ordinances, codes, rules, regulations and orders pertaining
         thereto, including, without limitation, to the extent applicable, all
         zoning laws and building codes, all environmental laws and all
         regulations of the FAA and the FCC.

         15.2 LESSEE'S REPRESENTATIONS AND WARRANTIES. Lessee represents and
warrants that:

         (a) The Facilities and the operation thereof do not and will not result
         in exposure of workers or the general public to levels of radio
         frequency radiation in excess of the "Radio Frequency Protection
         Guides" recommended in "American National Standard Safety Levels With
         Respect to Human Exposure to Radio Frequency Electromagnetic Fields,
         300 KHz to 100 GHz," issued by the American National Standards
         Institute ("Acceptable Radio Frequency Radiation Standards").

         (b) The execution, delivery and performance of this Agreement, and the
         consummation of the transactions contemplated hereby, have been duly
         and validly authorized by all necessary actions on the part of Lessee
         and shall not constitute a breach or violation under any agreement to
         which Lessee is a party. This Agreement constitutes a valid and binding
         agreement and obligation of Lessee, enforceable in accordance with its
         terms.

         (c) Lessee will conduct its activities on Lessor's Property in
         compliance with all applicable laws, including, without limitation, all
         OSHA, FCC, and FAA rules and regulations, environmental laws, and any
         rule or law applicable to the construction or operation of Lessee's
         Facilities.

          (d) The Leased Land is and will remain in material compliance at all
         times during the Term and any Extension Term with all federal, state,
         county, municipal, local, administrative and other governmental laws,
         statutes, ordinances, codes, rules, regulations and orders pertaining
         thereto, including, without limitation, to the extent applicable, all
         zoning laws and building codes and all regulations of the FAA and the
         FCC.

         (e) No agent, broker or other person, entity or firm acting on behalf
         of or under the authority of Lessee or any affiliate of Lessee is or
         will be entitled to any broker's or finder's fee or any other
         commission or similar fee, directly or indirectly, in connection with
         the transactions contemplated by this Agreement.

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                                   ARTICLE XVI

                                EVENTS OF DEFAULT

         16.1 DEFAULT OF LESSEE. Any of the following events shall constitute an
"event of default" on the part of Lessee:

         (a) The failure of Lessee to pay any amount due hereunder, and
         continuation of such failure for more than five (5) days after Lessee's
         receipt of written notice thereof from Lessor; provided however that
         Lessor shall not be required to provide such written notice to Lessee
         more than twice in any twelve (12) month period prior to declaring such
         failure to pay an event of default;

         (b) The failure of Lessee to comply with the provisions of Article IX
         hereof; or

         (c) The failure of Lessee to fulfill any other obligation hereunder or
         the inaccuracy of any representation or warranty and the continuation
         of such failure or inaccuracy for more than ten (10) days after notice
         by Lessor, provided, however, that if the nature of Lessee's failure is
         such that more than ten (10) days is required for its cure, then Lessee
         shall not be deemed to be in default if Lessee has commenced such cure
         within the ten (10) day period, demonstrates to Lessor's reasonable
         satisfaction that such default is curable and thereafter diligently
         prosecutes such cure to completion.

         16.2 TERMINATION BY DEFAULT OF LESSEE. If an event of default on the
part of Lessee shall occur at any time, Lessor, at its election, may give Lessee
a notice of termination specifying a day not less than thirty (30) days
thereafter on which the term of this Agreement shall end. If such notice is
given, the Agreement shall expire on the day so specified as fully and
completely as if that day were the day herein originally fixed for such
expiration, and Lessee shall then quit and surrender the Leased Land to Lessor.
If the Agreement is terminated pursuant to this Section, Lessee shall remain
liable to Lessor for the payment of rent for the remainder of the lease term and
without prejudice to any other right or remedy which Lessor may have hereunder
or by law and which shall, at the sole election and discretion of Lessor, become
immediately due and payable. Notwithstanding the foregoing, Lessor shall attempt
to mitigate any damages it may suffer as a result of the default of this
Agreement by Lessee. Notwithstanding any waiver of any prior breach or event of
default hereunder, Lessor may re-enter the Leased Land either by reasonable
force or otherwise, or dispossess Lessee, any legal representative of Lessee or
other occupant of the Leased land by appropriate suit, action or proceeding and
remove its effects and hold the Leased Land as if this Agreement had not been
made. Notwithstanding anything in this Agreement to the contrary, and in
addition to any other remedies Lessor may have, if an event of default shall
occur, Lessor, at its election, may stop providing Utilities to Lessee's
Facilities and/or the Leased Land and Lessee specifically waives any and all
claims for damages against Lessor arising from a loss Utilities to the Leased
Land.

                                  ARTICLE XVII

                                    INSURANCE

         17.1 LESSEE'S INSURANCE. Lessee shall, at its sole expense, maintain
commercial public liability insurance against claims for personal injury, bodily
injury, wrongful death and property damage occurring on, in or about Lessor's
Property under policies and with companies reasonably acceptable to Lessor,
affording insurance protection to limits of not less than One Million Dollars
($1,000,000.00) for combined single limit with respect to any one occurrence and
Three Million Dollars ($3,000,000.00) in the aggregate for all occurrences
within each policy year. Lessee shall also maintain "all risk" or special form
policies of property insurance covering the Facilities and any improvements of
Lessee located on the Lessor's Property for the full replacement cost. Lessor,
its managing agent, all mortgagees, and such other parties as Lessor may
reasonably designate shall be named as additional insureds on each such policy
pertaining to Lessor's Property and shall be furnished with a certificate
thereof. Each such policy of insurance shall, to the extent obtainable at no
extra premium, provide: (a) that any claim shall be payable notwithstanding any
act, whether of commission or omission, negligent or otherwise, of Lessor, of
Lessee, of any other tenant or of any agent, employee, representative, visitor
or guest of any of them, which act might otherwise result in the forfeiture of
the insurance afforded by such policy, and (b) that Lessor shall not be liable
to the insurer by reason of any payment by the insurer to Lessor, or any such
other tenant. In addition, each such policy shall provide an agreement by the
insurer that the policy will not be canceled or modified to reduce coverage as
to risk, amount or named insured without at least fifteen (15) days' prior
written notice to Lessee, Lessor, mortgagees, and all other named insureds.

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         17.2 WAIVER. Neither Lessor, nor their representatives, agents, or
employees shall be liable to Lessee or to anyone claiming through Lessee or to
any insurance company (by way of subrogation or otherwise) insuring Lessee for
any business interruption or for any loss or damage to any building, structure
or other tangible property, or injury to or death of persons occurring on or
about Lessor's Property, or in any manner growing out of or connected with
Lessee's use or occupation of the Lessor's Property, or the use or occupation of
the Lessor's Property by Lessee's agents, employees, representatives, visitors
or guests even though such business interruption, loss, damage, injury or death
might have been occasioned by the negligence of Lessor or their agents or
employees, to the extent that such business interruption, loss, damage, injury
or death is or could be covered by an "all risk" or special form policy of
property insurance, regardless of whether such insurance policies are actually
carried. Each insurance policy carried by Lessee hereto shall contain a clause
incorporating such waiver of subrogation and a clause to the effect that the
foregoing waiver shall not affect the right of the insured party to recover
under such policy.

         17.3 LESSEE'S OBLIGATION TO REIMBURSE. Should Lessee store or maintain
any materials or equipment, or do any acts which result in an increase in the
rate or premium of any insurance coverage required to be provided by Lessor
pursuant to this Agreement, Lessee shall immediately reimburse Lessor for the
full amount of any such increase or shall remove them if Lessor so requires.

                                  ARTICLE XVIII

                                 INDEMNIFICATION

         18.1 INDEMNIFICATION BY LESSEE. Lessee shall indemnify Lessor and its
agents, officers and employees and hold Lessor and its agents, officers and
employees harmless from and against all claims, actions, losses, damages,
liabilities and expense (including reasonable attorneys' fees) incurred by or
asserted against Lessor whether during or after the term of this Agreement,
including by reason of personal injury, loss of life, or damage to property,
caused by or resulting from, in whole or any material part: (i) any breach of
this Agreement by Lessee; (ii) Lessee's breach of any warranty contained in this
Agreement; (iii) any negligent or intentional act or omission of Lessee,
Lessee's Employees, agents, invitees or contractors, whether in, on, about or
with respect to the Leased Land or Lessor's Property; (iv) the use by Lessee of
any part of the Leased Land or Lessor's Property; (v) any work undertaken by or
at the request of Lessee on or about the Leased Land; (vi) any inspection,
observation or any action undertaken by Lessor pursuant to Article IX hereof;
(vii) the claim, existence or discovery of any hazardous substance on Lessor's
Property arising from Lessee's activities; (vii) any other activity undertaken
by or at the request of Lessee pursuant to or in connection with this Agreement;
or (ix) the presence of any individuals on the Leased Space or Lessor's Property
as a result of Lessee's request or this Agreement.

         18.2 DEFENSE BY LESSEE. If Lessor so elects by notice to Lessee, Lessee
shall have the obligation of defending, at its sole cost and expense, by counsel
selected by Lessee and approved by Lessor (such approval not to be unreasonably
withheld), against any claim to which the foregoing indemnity may apply. Lessor
may assume, or require that such defense be assumed, by Lessor and counsel
selected by Lessor, at the cost and expense of Lessee if Lessor is for any
reason dissatisfied with the defense by Lessee, or believes that its interests
would be better served thereby. In any case where Lessee is defending any such
claim, Lessor may participate in the defense thereof by counsel selected by it,
but at Lessor's expense. Lessee shall not enter into any settlement of any claim
without the consent of Lessor, which consent shall not be unreasonably withheld.

                                       9
<PAGE>   10

                                   ARTICLE XIX

                       RECONSTRUCTION OF DAMAGED PREMISES

         19.1 REPAIR. Except as otherwise provided in this Agreement, if
Lessee's Property, or any portion thereof, is partially or totally destroyed by
fire or other casualty so as to become partially or totally unusable, Lessee may
repair or reconstruct the damage on Lessor's Property to the extent and in the
manner required to meet the then current needs of Lessee.

         19.2 RENT ABATEMENT. This Agreement will remain in full force and
effect pending repair or replacement of the damaged or destroyed premises, and
the obligation of Lessee to pay the Monthly Rent will not be abated during any
period due to damage to or destruction of the Lessee's Facilities (other than
fault of Lessor).

         19.3 ELECTION NOT TO REPAIR. Notwithstanding anything to the contrary
in Sections 19.1 and 19.2 Lessee may, at its sole and absolute discretion, elect
not to repair or rebuild it's Facilities, or any portion thereof. Lessee will
promptly notify Lessor within forty-five (45) days of the event causing the
damage or destruction, if such option is elected.

                                   ARTICLE XX

                                  FORCE MAJEURE

         20.1 FORCE MAJEURE. Except for Lessee's obligation to pay Rent, and
except as set forth in Article XIX above, neither party shall be held liable for
any delay or failure in performance of any part of this Agreement from any cause
beyond its control and without its fault or negligence, such as acts of God,
acts of civil or military authority, government regulations, strikes, labor
disputes, embargoes, epidemics, war, terrorist acts, riots, insurrections, fire,
explosions, earthquakes, nuclear accidents, floods, power blackouts or brownouts
or surges, volcanic action, other major environmental disturbances, unusually
severe weather conditions, inability to secure products or services of other
persons or transportation facilities, or act or omissions of transportation
common carriers (collectively referred to as "Force Majeure Conditions").

         20.2 TERMINATION BY FORCE MAJEURE. If any such Force Majeure Condition
occurs and is the proximate cause of a delay or failure in performance of any
part of a party's obligations under this Agreement for more than ninety (90)
days, the other party may, by written notice given to the party whose
performance was delayed or who failed to perform, terminate this Agreement or
that part of this Agreement that is affected by such delay or failure to perform

                                   ARTICLE XXI

                                     SAFETY

         21.1 FACILITIES. Lessee is responsible for the safety of all
Facilities, buildings, structures and other materials brought by Lessee onto
Lessor's Land, and for the safety of all work performed by Lessee's Employees in
the delivery, provision, installation, operation, maintenance, repair and
removal of the Facilities, buildings, structures and any other material brought
by Lessee onto Lessor's Property. In discharging this responsibility, Lessee
shall comply (and shall cause Lessee's Employees to comply) with the
requirements of the Occupational Safety and Health Act of 1970, as amended; and
with any other federal, state, or local act or other requirements of law
affecting safety and health.

         21.2 VIOLATIONS. Lessee shall be responsible for any violation by
Lessee or Lessee's Employees of any safety or health standard under this
Agreement. If any material furnished or any work performed by Lessee or Lessee's
Employees gives rise to a safety or health violation, Lessee will immediately
remedy such condition and will indemnify, defend, and hold Lessor it's
employees, agents, officers, representatives, affiliates, parent, subsidiaries
and their affiliated companies, and their employees, agents, officers and
representatives) harmless from any penalty, fine, or liability in connection
with such a violation.

                                       10

<PAGE>   11

                                 ARTICLE XXII

                          PERMITS, LICENSES, APPROVALS

         22.1 FCC PERMITS. Lessee will apply for and obtain, at its sole cost
and expense, FCC construction permits applicable to the installation of the
Facilities, and will meet all FCC license and other requirements and
restrictions. The FCC construction permit(s) must be approved before any
construction or installation activity begins. A completed copy of Lessee's FCC
application and License will be supplied to Lessor along with the executed
agreement.

         22.2 FAA APPROVAL. Lessee will notify the FAA of any Tower
modifications and Antenna installations, that may be required by Lessee, and
will use reasonable efforts to obtain any FAA-required permits, license, or
approvals associated with Lessee's Facilities. Lessee will pay for all costs and
expenses it incurs in obtaining or attempting to obtain any permits, license, or
approvals.

         22.3 OTHER PERMITS OR LICENSE. Lessee shall apply for and obtain, at
its sole cost and expense, any and all License, permits, variances or other
governmental approvals required to install, operate and maintain its Facilities
in the Leased Land; provided that Lessee shall not submit any such applications
without the prior written consent of Lessor, which consent shall not be
unreasonably withheld.

                                  ARTICLE XXIII

                            MISCELLANEOUS PROVISIONS

         23.1 SEVERABILITY. If any one or more of the provisions contained in
this Agreement is, for any reason, held to be unenforceable in any respect under
applicable state law or laws of the United States of America, such
unenforceability will not affect any other provision of this Agreement, but this
Agreement will then be construed in such a way as will achieve the intent of
such unenforceable provision or provisions to the extent permitted by law.

         23.2 ASSIGNMENT BY LESSOR. Notwithstanding any of the provisions of
this Agreement, Lessor may assign, in whole or in part, Lessor's interest in
this Agreement. In the event Lessor assigns this Agreement to a successor owner
of the Leased Land, Lessor shall be and is hereby relieved of all liability
arising after the consummation of such assignment under any and all covenants
and obligations contained in or derived from this Agreement or arising out of
any act, occurrence or omission relating to the Leased Land occurring after the
consummation of such assignment, but only upon the condition that, as part of
such Assignment, Lessor will cause the Assignee to agree, in writing, to carry
out any and all of the covenants and obligations of Lessor under this Agreement
occurring after the consummation of Lessor's assignment of its interest in and
to this Agreement. In the event of an assignment of Lessor's interest in this
Agreement to a Lender, as hereinafter defined, or a designee of a Lender, (i)
the assignee shall have no obligation to Lessee hereunder other than, provided
Lessee is not in default hereof, the obligation of quiet enjoyment, (ii) all
amounts required to be paid to Lessor hereunder from Lessee shall be paid to the
assignee, and (iii) Lessee shall not assert against such assignee any claims,
defenses, setoffs or counterclaims that it might have had against Lessor.

                                       11

<PAGE>   12

         23.3 ASSIGNMENT BY LESSEE. Lessee may not assign this Agreement without
the prior written consent of Lessor which consent shall not unreasonably be
withheld. Lessee may not sublet this Agreement, the Leased Land, or any portion
thereof without the prior written consent of Lessor, which consent shall be
given or withheld in Lessor's sole and absolute discretion. Under no
circumstance shall this Agreement be assigned by Lessee to any party which does
not agree in writing to be bound by all terms and conditions contained herein
and, notwithstanding Lessee's assignment of this Agreement, Lessee shall remain
liable for all obligations of Lessee pursuant to this Agreement until such time
as this Agreement is terminated.

         23.4 CONDEMNATION. In the event Lessor's Property or any portion
thereof is taken pursuant to a condemnation proceeding or by eminent domain,
such that Lessor, or Lessee can no longer operate telecommunications equipment
on Lessor's property, this Agreement shall, at Lessor's sole and absolute
discretion, terminate without liability to either party and Lessee shall not be
entitled to any portion of any award arising out of such proceedings.

         23.5 RULES AND REGULATIONS. From time to time, Lessor shall be entitled
to create and enforce rules and regulations governing the use of Lessor's
Property. Lessee agrees Lessee and Lessee's employees shall abide by said rules
and regulations. Lessor agrees that it shall not create or enforce any
unreasonable rules or regulations which would unduly prejudice Lessee's use of
the Leased Land, or which would prevent reasonable access to the Leased Land by
Lessee, as herein provided.

         23.6 RESTORATION ON TERMINATION. Upon the termination of the Agreement
for any reason, Lessee will restore the Leased Land to its original condition,
normal wear and tear excepted, at Lessee's sole cost and expense. Any fixtures
including, without limitation, all Antenna, Cabling and Equipment, goods or
other property of Lessee not removed within ten (10) days after any quitting,
vacating or abandonment of the Leased Land, or upon Lessee's eviction therefrom,
shall be considered abandoned, and Lessor shall have the right, without notice
to Lessee, to sell or otherwise dispose of same without having to account to
Lessee for any part of the proceeds of sale.

         23.7 NOTICES. All notices, demands, and requests required or permitted
to be given hereunder shall be in writing and sent certified mail, return
receipt requested.

         To Lessee:   Salem Media of Colorado, Inc.
                      KRKS
                      3131 Sp/ Vaughn Way #601
                      Aurora CO, 80014

         To Lessor    Atsinger Family Trust/Epperson Family Limited Partnership
                      c/o Salem Communications Corporation
                      4880 Santa Rosa Road, Suite 300
                      Camarillo, CA 93012
                      Facsimile No:  (805) 987-6072
                      Attn: Brian J. Counsil, Esq.

Either party hereto may change the place for notice to it by sending like
written notice to the other party hereto.

         23.8 SUBORDINATION. Unless a Lender, as hereinafter defined, shall
otherwise elect as provided herein, Lessee's rights under this Agreement shall
be subject and subordinate to the operation and effect of any existing or future
Lien, as hereinafter defined, affecting Lessor's Land and to any extensions,
modifications or amendments of any such mortgage. Lessee's acknowledgment and
agreement of subordination provided for in this Section is self-operative and no
further instrument of subordination shall be required. However, within ten (10)
working days after request, Lessee shall execute a subordination,
non-disturbance and attornment agreement in form satisfactory to Lessor. If a
Lender shall so elect by notice to Lessee or by the recording of a unilateral
declaration of subordination, then this Agreement and Lessee's rights hereunder
shall be superior and prior in right to the Lien of which such Lender has the
benefit, with the same force and effect as if this Agreement had been executed,
delivered

                                       12

<PAGE>   13

and recorded prior to the execution, delivery and recording of such Lien, as the
case may be, subject, nevertheless, to such conditions as may be set forth in
any such notice of declaration. The term "Lien" means any mortgage, deed of
trust or other security instrument constituting a lien upon all or any portion
of the Lessor's Land. The term "Lender" means a party having the benefit of the
Lien, whether as mortgagee, trustee, note holder or otherwise. Lessor shall make
a reasonable effort to obtain from any Lender an agreement that the Lender shall
not disturb Lessee's quiet possession in the event of foreclosure. If any
proceedings are brought for foreclosure, or in the event the exercise of the
power of sale under any mortgage or deed of trust made by the Lessor encumbering
the Leased Land, Lessee shall attorn to the purchaser upon any such foreclosure
or sale and recognize such purchaser as the Lessor under this Agreement.

         23.9 BINDING EFFECT. The provisions of this Agreement shall apply to,
bind and inure to the benefit of Lessor and Lessee, their respective successors,
legal representatives or assigns.

         23.10 ENTIRE AGREEMENT/MODIFICATIONS. This Agreement contains the
entire understanding and agreement between the parties. No representative, agent
or employee of Lessor has been authorized to make any representations or
promises with reference to the within agreement or to vary, alter or modify the
terms hereof. No additions, changes or modifications shall be binding unless
reduced to writing and signed by the parties.

         23.11 RESOLUTION OF CLAIMS AND DISPUTES. Regardless of the place of
execution, this Agreement shall be deemed to be a contract made in Aurora,
Colorado and shall be interpreted as a contract to be performed wholly in the
State of Colorado. The law of the State of Colorado shall be applied without
regard to the principles of conflicts of laws. Lessee expressly waives any
presumption or rule, if any, which requires this Agreement to be construed
against Lessor. Any claims or disputes arising out of this Agreement shall be
resolved only by mediation or, if mediation does not resolve the claim or
dispute within ten (10) days of notice demanding mediation, by arbitration in
accordance with the Rules for Commercial Arbitration of the American Arbitration
Association and any award therefrom shall be rendered by the arbitrators as a
judgment in any trial court having jurisdiction in the City of Aurora, Colorado,
or of any other court having competent jurisdiction.

         23.12 WAIVER. Failure of any party to complain of any act or omission
on the part of any other party in breach or default of this Agreement, no matter
how long the same may continue, shall not be deemed to be a waiver by said party
of any of its rights hereunder. No waiver by any party at any time, express or
implied, of any breach of any provision of this Agreement shall be deemed a
waiver of a breach of any other provision of this Agreement or a consent to any
subsequent breach of the same or other provisions.

         23.13 ESTOPPEL. Either party shall at any time, upon ten (10) days'
prior written request from the other party, execute, acknowledge and deliver to
the requesting party a statement in writing (a) certifying this Agreement to be
unmodified and in full force and effect (or, if modified, stating the nature of
such modification), and the date to which the rent and other charges have been
paid in advance, if any uncured defaults hereunder on the part of the requesting
party, or specifying such defaults if they are claimed.

         23.14 REASONABLENESS. Except as specifically set forth herein to the
contrary, any approval, consent or permission required to be given hereunder by
any party shall not be unreasonably withheld, delayed or conditioned.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

LESSOR:                                LESSEE:

ATSINGER FAMILY TRUST                  SALEM MEDIA OF COLORADO, INC. KRKS

By:                                    By:
   -------------------------------        --------------------------------------

----------------------------------        --------------------------------------

EPPERSON FAMILY LIMITED PARTNERSHIP

By:
    -------------------------------

-----------------------------------

                                       13<PAGE>   1

                                                               EXHIBIT 10.08.01

                                                          + + EXECUTION COPY + +

                    LOCAL PROGRAMMING AND MARKETING AGREEMENT
                                      WITH
                           OPTION TO PURCHASE STATION

         This Local Programming and Marketing Agreement with Option to Purchase
Station (the "Agreement"), dated as of August 13, 1999, is entered into by and
between CONCORD MEDIA GROUP, INC. ("Licensee"), and RADIO 1210, INC.
("Programmer").

         WHEREAS, Licensee is the owner of certain assets relating to radio
station KCBQ(AM), San Diego, California (the "Station") and holds all of the
licenses and authorizations issued by the FCC for the operation of the Station;

         WHEREAS, the Station's transmission facilities are located on real
property (the "Current Site") leased to Licensee pursuant to a lease agreement
expiring approximately on ___________, 200__, and Licensee has been informed
that the Station will not be able continue to use the Current Site following the
expiration of the lease;

         WHEREAS, Programmer desires to purchase substantially all of the assets
of the Station, including, without limitation, the licenses and authorizations
issued by the FCC for the operation of the Station, and Seller is willing to
convey such assets to Buyer;

         WHEREAS, Programmer does not want enter into any agreement to purchase
the Station unless and until it has secured an interest in real property ("New
Site") which can serve as an adequate replacement for the Current Site,
including any federal, state and local government approvals required for the New
Site,

         WHEREAS, in accordance with procedures and policies approved by FCC,
the Programmer desires to avail itself of Station's broadcast time for the
presentation of a programming service, including the sale of program and
advertising time in contemplation of the potential sale of the Station to
Programmer;

         WHEREAS, in accordance with procedures and policies approved by the
FCC, Licensee desires to provide to Programmer the Station's broadcast time for
the presentation of a programming service, including the sale of program and
advertising time in contemplation of the potential sale of the Station to
Programmer;

         NOW, THEREFORE, for and in consideration of the mutual covenants herein
contained, the parties hereto have agreed and do agree as follows:

         1. PURCHASE OF AIR TIME AND BROADCAST OF THE PROGRAMMING. Subject to
the provisions of Section 4 hereof, Licensee agrees to make the broadcasting
transmission facilities of the Station available to the Programmer and to
broadcast on the Station, or cause to be broadcast, the Programmer's programs
(the "Programming") for up to 24 hours a day, seven days a week, except for the
broadcast of Licensee's public service programming as provided in Section 10.1
of

<PAGE>   2

                                                          + + EXECUTION COPY + +

this Agreement ("Licensee Programming"). The facilities and the transmitting
equipment of Licensee relating to the Station, including any equipment owned by
Licensee not currently in service, reasonably shall be made available to the
Programmer for its use during the term of this Agreement.

         2. CONSIDERATION. The terms and conditions of payment ("Consideration")
to Licensee for the broadcasting of the Programming during the term of this
Agreement shall be as set forth in Schedule 2.

         3. TERM.

                  3.1 COMMENCEMENT/TERMINATION DATE.

                  3.1.1. This Agreement shall commence and be effective at 12:01
a.m. Pacific time on SEPTEMBER 1, 1999 (the "Commencement Date").

                  3.1.2. Except as otherwise provided in this Agreement, the
term of this Agreement shall end at 11:59 p.m. Pacific time on the date
("Original Termination Date") being later to occur of:

                           (a) The earlier to occur of (i) nine (9) months from
the Commencement Date or (ii) sixty (60) days after Licensee's receipt of
written notice from Programmer; or

                           (b) In the event the Option Right, as set forth in
Section 21 hereof, is exercised, then the termination or consummation of the
transactions contemplated by the Asset Purchase Agreement described in Section
21 hereof.

                  3.1.3. Programmer shall have the right to extend the term of
this Agreement (including the provisions of Section 21 hereof) to a date
("Extended Termination Date") being six (6) months from its receipt of written
notice from Licensee if, prior to the Original Termination Date, Programmer
shall have (i) entered into an agreement to acquire a suitable New Site, (ii)
filed applications for approvals of any required federal, state and local
governmental authorities having jurisdiction over the New Site as may be
necessary for the New Site to serve as a transmitter site for the Station, and
(iii) taken all commercially reasonable steps necessary to prosecute such
filings with diligence to the end that such approvals may be obtained as soon as
practicable. As used in this Agreement, the term "Termination Date" shall mean
and refer to the later to occur of the Original Termination Date and the
Extended Termination Date.

                  3.2 TERMINATION BY FCC. In the event that either party
receives formal or constructive notice from the FCC that this Agreement or any
of its terms are contrary to the public interest or violative of any FCC
statute, regulation, rule or policy, either party shall have the right to
terminate this Agreement (except to the extent the provisions of Section 21
shall survive as provided therein) immediately by written notice to the other
party.

                                       2
<PAGE>   3

                                                          + + EXECUTION COPY + +

         4. THE PROGRAMMING. The Programmer shall furnish programming to
Licensee for up to 24 hours a day, seven days a week, except for the broadcast
of Licensee's Programming. The nature of the program service to be provided by
the Programmer will be determined by Programmer subject to applicable FCC rules
and regulations and subject further to the requirement that Programming will
serve the public interest. Throughout the term of this Agreement Programmer
shall provide sufficient programming at least to meet the minimum operational
requirements for AM broadcast Stations as provided by Section 73.1740 of the
FCC's Rules and Regulations. 47 C.F.R. ss. 73.1740. At the date of this
Agreement, that minimum requires at least eight (8) hours of programming between
the hours of 6:00 a.m. and 6:00 p.m., local time; and at least four (4) hours of
programming between the hours of 6:00 p.m. and midnight.

                  4.1. LICENSEE'S PROGRAMMING. Licensee shall be entitled to
provide and broadcast four (4) hours per week of programming on the Station,
including public affairs programming to address the issues and problems of San
Diego, California, and the surrounding service area. Any programming broadcast
by Licensee pursuant to this Section, including public affairs programming,
shall be broadcast between 2:00 a.m. and 4:00 a.m. on Sunday, or between 12:00
a.m. and 4:00 a.m. on Monday. Nothing herein shall be interpreted or construed
to restrict to the hours set forth in this subsection the Licensee's general
authority over programming under this Agreement. In all such cases, Licensee
will use its best commercially reasonable efforts to give Programmer reasonable
advance notice of its intention to broadcast pursuant to this section and, in
the event of such broadcasts, Programmer shall receive a payment credit for any
programming which would have been supplied by it during the time of such
broadcasts by Licensee.

         5. STATION FACILITIES.

                  5.1 OPERATION OF STATION. Throughout the term of this
Agreement, Licensee shall make the Station available to the Programmer as
provided in this Agreement, except for Licensee's Programming and downtime
occasioned by routine maintenance which will be performed between the hours of
12 midnight and 6:00 a.m. Except for maintenance work and other improvements to
the Station or the Station's equipment performed by or at the direction of
Programmer, any maintenance work affecting the operation of the Station at full
power, except such emergency maintenance as is required to maintain compliance
with the Station's license or FCC regulations, rules or policies, shall be
scheduled upon at least 48 hours prior notice with the agreement of the
Programmer, which agreement shall not be unreasonably delayed or withheld.

                  5.2 INTERRUPTION OF NORMAL OPERATIONS. Except for maintenance
work and other improvements to the Station or the Station's equipment performed
by or at the direction of Programmer, if the Station suffers loss or damage of
any nature to its transmission facilities which results in the interruption of
service or the inability of the Station to operate with its maximum authorized
facilities, Programmer shall immediately notify Licensee, and Licensee shall
undertake such repairs as reasonably necessary to restore the fulltime operation
of the Station with its maximum authorized facilities (i.e. as set forth on its
license) as quickly as reasonably practicable. Except as may be the direct
result of any act, omission or action of Programmer, if the Station is

                                       3
<PAGE>   4

                                                          + + EXECUTION COPY + +

incapable of operating with its maximum authorized facilities, Licensee shall
pay Programmer a prorated share of the Consideration proportionate to the amount
of time the Station was so impaired as follows: (a) if the effective radiated
power ("ERP") of the Station is 50% or less of the maximum ERP as set forth on
the Station's license, the Consideration will be abated (i) 100% for each
daytime daypart, or (ii) 50% for each nighttime daypart, or any portion thereof;
the Station so operates; and, (b) if the ERP of the Station is 90% to 51% of the
maximum ERP as set forth on the Station's license, the Consideration will be
abated (i) in proportion to the percentage loss in ERP, for each daytime
daypart, or (ii) one half of the percentage loss in ERP for each nighttime
daypart, or any portion thereof, the Station so operates; and, (c) if the ERP of
the Station is 91% or more of the maximum ERP as set forth on the Station's
license, the Consideration will not be abated. For the purposes of this
provision, the term "daytime daypart" shall mean between 7:00 AM and 7:00 PM,
local time, and the term "nighttime daypart" shall mean all other hours. If the
required repairs necessary to return the Station to operation with its full
authorized maximum facilities are not made within seven (7) days, the Programmer
may terminate this Agreement (except to the extent the obligation of Section 21
shall survive as provided therein) upon 10 days notice to Licensee, any other
provision of this Agreement notwithstanding; provided, however, in the event (x)
the required repairs cannot reasonably be completed with seven (7) days, (y)
Licensee has commenced the required repairs within seven (7) days, and (z)
Licensee is diligently proceeding to effectuate said required repairs,
Programmer may not terminate this Agreement pursuant to this Section 5.

         6. HANDLING OF MAIL. The Programmer shall provide to Licensee the
original or a copy of any correspondence which it receives from a member of the
public relating to the Programming to enable Licensee to comply with FCC rules
and policies, including those regarding the maintenance of the public inspection
file (which shall at all times remain the responsibility of Licensee).

         7. PROGRAMMING AND OPERATIONS STANDARDS. All programs supplied by the
Programmer shall be in good taste and shall meet in all material respects all
requirements of the Communications Act of 1934 and all applicable rules,
regulations and policies of the FCC and the policies of the Station described in
Schedule 7. All advertising spots and promotional material or announcements
shall comply with all applicable federal, state and local regulations and
Station policies. If, in the reasonable judgment of Licensee or the Station's
General Manager, any portion of the Programming presented by the Programmer does
not meet such standards, Licensee may suspend or cancel any such portion of the
Programming.

         8. RESPONSIBILITY FOR EMPLOYEES AND RELATED EXPENSES.

                  8.1 PROGRAMMER EMPLOYEES. The Programmer shall furnish (or
cause to be furnished) the personnel and material for the production of the
Programming to be provided by this Agreement. The Programmer shall employ and be
responsible for the salaries, taxes, insurance and related costs and benefits
for all personnel used in the production of Programming (including sales people,
traffic personnel and programming staff). The Programmer shall not pay or
reimburse the

                                       4
<PAGE>   5

                                                          + + EXECUTION COPY + +

salaries or other costs associated with any employees of Station that Licensee
may be required to employ or may elect to employ on or after the date of
commencement of this Agreement.

                  8.2 LICENSEE EMPLOYEES. Licensee will provide and have
responsibility for the Station personnel necessary for compliance with the
requirements of Licensee as set forth by the FCC, and will be responsible for
the salaries, taxes, insurance and related costs for all such Station personnel.
The parties agree and acknowledge that Licensee's continued control of the
Station is an essential element of the continuing validity and legality of this
Agreement. Accordingly, the Manager of the Station shall be employed and paid by
Licensee, report solely to, and be accountable solely to, Licensee and shall
direct, subject to Licensee's exclusive oversight and control, the day-to-day
operations of the Station. Licensee shall employ and pay such other full-time
personnel, or equivalent thereof (not less than one), as Licensee determines may
be necessary to fulfill its obligations as a licensee under the Communications
Act and the rules and regulations of the FCC.

                  8.3 EMPLOYEE OVERSIGHT. Whenever on the Station's premises,
all personnel shall be subject to the supervision and the direction of the
Station's General Manager and/or the Station's Chief Operator.

         9. ADVERTISING AND PROGRAMMING REVENUES. During the Programming it
delivers to the Station, the Programmer shall have full authority to sell for
its own account commercial spot advertising and block programming time on the
Station and to retain all revenues from the sale of such advertising and
programming. The parties agree that the Programmer shall have complete
discretion, reasonably exercised, to deal as it deems reasonably appropriate
with all advertising and programming accounts relating to advertising and
programming sold by it; provided, however, the Programmer shall deal with
political candidate and supporter advertising as required by law and provide
Licensee with requisite documentation for the Station's public file. Programmer
shall prepare and supply to Licensee a Political Advertising Disclosure
Statement setting forth the manner in which Programmer sells program and spot
time and informing political advertisers of their rights and obligations. The
Political Advertising Disclosure Statement shall be subject to the approval of
Licensee, which approval shall not unreasonably be withheld.

         10. OPERATION OF THE STATION.

                  10.1 VERIFICATION OF LICENSEE'S CONTROL AND RIGHTS OF
LICENSEE. Notwithstanding anything to the contrary in this Agreement, Licensee
shall have full authority and power over the operation of the Station during the
period of this Agreement. Licensee shall provide and pay for Licensee's
employees, who shall report and be accountable solely to Licensee, shall be
responsible for the direction of the day-to-day operation of the Station, and
shall oversee the Station's studio and transmission equipment and facilities,
including the tower, antenna, transmitter and transmission line, and Station's
studio transmitter link. Licensee shall retain control over the policies,
programming and operations of the Station, including, without limitation, the
right to decide whether to reasonably accept or reject any programming or
advertisements which Licensee deems unsuitable or contrary to the public
interest; the right to preempt any programs in order to broadcast

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a program deemed by Licensee to be of greater national, regional, or local
interest; and the right to take any other actions necessary for compliance with
the laws of the United States, the State of California, the rules, regulations,
and policies of the FCC (including the prohibition on unauthorized transfers of
control), and the rules, regulations and policies of other federal governmental
authorities, including the Federal Trade Commission and the Department of
Justice. Licensee agrees that it shall carry its own public service programming
at such times as the parties may agree based on the reasonable programming needs
of the Programmer. With respect to the operation of the Station, Licensee shall
at all times be solely responsible for meeting all of the FCC's requirements
with respect to the broadcast and nature of any public service programming, for
maintaining the political and public inspection files and the Station log, and
for the preparation of all programs/issues lists. Licensee verifies that it
shall maintain the ultimate control over the Station's facilities, including
control over the finances with respect to its operation of the Station, over the
personnel operating the Station, and over the programming to be broadcast by the
Station.

                  10.2. VERIFICATION BY PROGRAMMER AND OBLIGATIONS OF
PROGRAMMER. The Programmer will, during the term of this Agreement, provide
local news and public affairs programming relevant to the Station's community to
assist Licensee in satisfying its obligations to respond to the needs of its
community. Programmer will also forward to Licensee within twenty-four (24)
hours of receipt by Programmer, any correspondence from the FCC regarding the
Station or letter from a member of the general public addressing Station
programming or documentation which comes into its custody which is required to
be included in the Station's public file or which is reasonably requested by
Licensee. The Programmer shall furnish within the Programming on behalf of
Licensee all station identification announcements required by the FCC rules, and
shall, upon request by Licensee, provide monthly documentation with respect to
such of the Programmer's programs which are responsive to the public needs and
interests of the area served by the Station in order to assist Licensee in the
preparation of any required programming reports. Programmer also will provide
upon request other information to enable Licensee to prepare other records,
reports and logs required by the FCC or other local, state or federal
governmental agencies. Programmer shall cause the Station to transmit any
required tests or announcements of the Emergency Alert System at such times as
are required by FCC rule. Programmer shall maintain and deliver to Licensee
copies of all operating and programming information, including without
limitation EBS or EAS announcements and station operating logs, as necessary to
maintain the records required to be kept by the FCC's rules or policies.

         11. STATION CALL LETTERS.

                  11.1. CALL SIGNS. So long as it is the licensee of the
Station, Licensee will retain all rights to the call letters KCBQ(AM) (the "Call
Letters"). Programmer is specifically authorized to use the Call Letters in
Programmer's Programming and, subject to the conditions and provisions of
Section 7.2, in any promotional material in any media used in connection with
the Programming. Licensee will not seek or acquiesce in a change of call letters
for the Station without Programmer's consent. Programmer shall submit to
Licensee any promotional material which will identify the Station by call
letters or frequency for approval by Licensee at least two (2)

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days prior to use of such promotional material by Programmer. Licensee shall
have the right to approve or reject such promotional material, such approval to
not be unreasonably withheld or delayed. All documentary materials used by
Programmer containing the call letters of the Station, including stationery,
bills, rate cards, etc., shall contain a notation that Licensee holds the
license for operation of the Station. Moreover, to avoid the potential for
public confusion regarding the ownership of the Station, the telephones at the
Station will be answered with the Station's call letters, rather than the name
of either Programmer or Licensee.

                  11.2. CALL SIGN PROMOTION AND/OR CHANGE. The call letters for
the Station shall not be changed without the prior written consent of Licensee.
Licensee will use its best efforts to assist Programmer in the promotion and use
of the call letters chosen by Programmer in connection with the broadcast of the
Programming on the Station. Except as provided in Section 21 hereof, during the
life of this Agreement, Programmer shall have no property right or interest in
the Call Letters. Should Licensee consent to a change of the call sign for the
Station, then Licensee shall have no property right or interest in such new call
letters and will release to Programmer any such call letters upon termination of
this Agreement. Licensee will provide to Programmer such reasonable assistance
as Programmer may request (at no cost or penalty to Licensee) to protect
Programmer's rights in such "new" call letters, and Licensee will not then
replace the call letters with any that are similar to any "new" call sign chosen
by Programmer. Subject to Licensee's prior consent to a call sign change,
Licensee, in good faith, will reasonably assist and cooperate with Programmer to
allow and effectuate (i) one or more changes of the call sign for the Station
requested by Programmer, or (ii) the filing of any application with the FCC
and/or the Federal Aviation Administration to modify or improve the authorized
facilities for the Station. During the term of this Agreement, Programmer shall
reimburse Licensee for any reasonable costs and expenses incurred by Licensee in
connection with any call sign change or facilities modification application that
is requested by Programmer. Programmer shall pay all costs and filing fees
associated with any change in Station call letters requested by Programmer.

         12. SPECIAL EVENTS. Licensee shall have the right, in its reasonable
discretion, to preempt any of the broadcasts of the Programming referred to
herein, and to use part or all of the hours of operation of the Station for the
broadcast of events of special importance. In all such cases, Licensee will use
its best, commercially reasonable, efforts to give the Programmer reasonable
advance notice of its intention to preempt any regularly scheduled programming,
and, in the event of such preemption, the Programmer shall receive a payment
credit for any programming which would have been supplied by it during the time
of such broadcasts by Licensee.

         13. RIGHT TO USE THE PROGRAMMING. The right to use the Programming
produced by the Programmer and to authorize its use in any manner and in any
media whatsoever shall be at all times be vested solely in the Programmer except
as authorized by this Agreement.

         14. PAYOLA. The Programmer will provide to Licensee in advance of
broadcast any information known to the Programmer regarding any money or other
consideration which has been paid or accepted, or has been promised to be paid
or to be accepted, for the inclusion of any matter as a part of any programming
or commercial material to be supplied to Licensee by the

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Programmer for broadcast on the Station, unless the party making or accepting
such payment is identified in the program as having paid for or furnished such
consideration in accordance with FCC requirements. Should the Station determine
that an announcement is required by Section 317 of the Communications Act of
1934 and related FCC rules, the Programmer will insert that announcement in the
Programming. The Programmer will obtain from its employees responsible for the
Programming appropriate anti-payola/plugola affidavits. Commercial matters with
obvious sponsorship identification will not require disclosure beyond the
sponsorship identification contained in the commercial copy. The Programmer will
at all times comply, and seek to have its employees comply, in all material
respects with the requirements of Sections 317 and 507 of the Communications Act
of 1934, as amended, and the related rules and regulations of the FCC.

         15. COMPLIANCE WITH LAW. The Programmer will comply in all material
respects with all laws and regulations applicable to the broadcast of
programming by the Station.

         16. INDEMNIFICATION. Each party hereto shall indemnify and hold the
other, its officers, directors, stockholders, partners, affiliates and employees
harmless from and against any and all claims, damages, liability, forfeitures,
costs and expenses, including reasonable attorneys' fees, arising out of: (i)
any breach or non-performance by said party of any of its representations,
warranties, covenants or agreements set forth in this Agreement; (ii) any libel,
slander, illegal competition or trade practice, violation of rights of privacy,
and infringement of copyrights or other proprietary rights; and (iii) any
violations of the Communications Act of 1934 or FCC rules resulting from said
party's operation of the Station or its programming broadcast thereon.

         17. EVENTS OF DEFAULT; CURE PERIODS AND REMEDIES.

                  17.1 EVENTS OF DEFAULT. The following shall constitute Events
of Default under this Agreement:

                  17.1.1 NON-PAYMENT. The Programmer's failure to pay the
Consideration within ten (10) days after written notice of a failure to pay said
amount when due.

                  17.1.2 DEFAULT IN COVENANTS OR ADVERSE LEGAL ACTION. The
default by either party in the performance of any material covenant, condition
or undertaking contained in this Agreement, and such default is not cured within
thirty (30) days after receipt of notice of default, or if either party shall
make a general assignment for the benefit of creditors, files or has filed
against it a petition for bankruptcy, for reorganization, or for the appointment
of a receiver, trustee or similar creditors' representative for the property or
assets of such party under any federal or state insolvency law, which, if filed
against such party, has not been dismissed or discharged within 30 days
thereafter.

                  17.1.3 BREACH OF REPRESENTATION. If any material
representation or warranty made by either party in this Agreement, or in any
certificate or document furnished by either party to the other pursuant to the
provisions of this Agreement, shall prove to have been false or misleading in
any material respect as of the time made or furnished, and such
misrepresentation

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or breach of warranty is not cured within thirty (30) days after receipt of
notice of misrepresentation or breach.

                  17.2 TERMINATION UPON DEFAULT. Upon the occurrence of an Event
of Default, the non-defaulting party may terminate this Agreement (except to the
extent the provisions of Section 21 shall survive as provided therein), provided
that it is not also in material default under this Agreement. If the Programmer
has defaulted in the performance of its obligations, all amounts accrued or
payable to Licensee up to the date of termination which have not been paid, less
any payment credits outstanding in favor of the Programmer, shall immediately
become due and payable, and Licensee shall be under no further obligation to
make available to the Programmer any broadcast time or broadcast transmission
facilities and Licensee shall not be required to return any portion of the
Consideration, provided that Licensee agrees, for a period of time not to exceed
ninety (90) days, to cooperate reasonably with the Programmer to discharge any
remaining obligations of the Programmer in the form of air time following the
effective date of termination. Licensee shall retain all revenue for
programming, spots, announcements, or features broadcast on the Station after
the termination of this Agreement pursuant to this Section 17.2. If Licensee has
defaulted in the performance of its obligations, Programmer shall be entitled to
cure the default of Licensee, at Licensee's sole cost for actual, reasonable
costs and expenses incurred by Programmer relating to the cure of Licensee's
default, and shall be entitled to deduct the cost of said cure from any
Consideration which is or may become due; provided, however, that in the event
Programmer shall elect to terminate this Agreement, all Consideration paid to
Licensee which relates to periods after termination shall immediately become due
and payable by Licensee to Programmer.

                  17.3 LIABILITIES UPON TERMINATION. The Programmer shall be
responsible for all of its liabilities, debts and obligations accrued from the
purchase of broadcast time and transmission facilities of the Station,
including, without limitation, indemnification pursuant to Section 16 hereof,
accounts payable, barter agreements and unaired advertisements, but not for
Licensee's federal, state, and local tax liabilities associated with
Programmer's payments to Licensee as provided for herein, or for any other
obligations or liabilities of Licensee or the Station unless specifically
assumed by the Programmer under this Agreement. Upon termination, the Programmer
shall return to Licensee any equipment or property of the Station used by the
Programmer, its employees or agents, in substantially the same condition as such
equipment existed on the date of this Agreement, ordinary wear and tear
excepted, provided that the Programmer shall have no liability to Licensee for
any property of Licensee which through ordinary use became obsolete or unusable,
and any equipment purchased by the Programmer, whether or not in replacement of
any obsolete or unusable equipment of Licensee, shall remain the property of the
Programmer. Provided Programmer is not in default hereof, in the event this
Agreement shall terminate as set forth in Section 3.2, Licensee shall pay
Programmer a prorated share of the Consideration that is paid in advance to
Licensee by Programmer.

         18. OPTION TO TERMINATE. The Programmer shall have the right, at its
option, to terminate this Agreement (except to the extent the provisions of
Section 21 shall survive as provided therein) at any time if Licensee preempts
or substitutes other programming for that supplied by the Programmer during ten
percent or more of the total hours of operation of the

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Station in any seven consecutive days. The Programmer shall give Licensee five
(5) days advance written notice of such termination. Each party shall have the
right, at its option, to terminate this Agreement upon termination of the Asset
Purchase Agreement described in Section 21.

         19. TERMINATION UPON ORDER OF JUDICIAL OR GOVERNMENTAL AUTHORITY.

                  19.1 CONDUCT OF THE PARTIES. If any court of competent
jurisdiction or any federal, state or local governmental authority designates a
hearing with respect to the continuation or renewal of any license or
authorization held by Licensee for the operation of the Station, advises any
party to this Agreement of its intention to investigate or to issue a challenge
to or a complaint concerning the activities permitted by this Agreement, or
orders the termination of this Agreement and/or the curtailment in any manner
material to the relationship between the parties to this Agreement of the
provision of programming by Programmer, each party shall have the option to seek
administrative or judicial appeal of or relief from such order(s) (in which
event the other party reasonably shall cooperate with the party seeking relief
from such order and each party shall be responsible for legal fees it has
incurred in such proceedings). Notwithstanding the foregoing:

                           19.1.1 OF LICENSEE. Subject to Section 16, Licensee
is responsible for all costs of defending the license of the Station to the
extent any court of competent jurisdiction or any federal, state or local
governmental authority designates a hearing with respect to the continuation or
renewal of any license or authorization held by Licensee for the operation of
the Station, advises any party to this Agreement of its intention to investigate
or to issue a challenge to or a complaint concerning the activities permitted by
this Agreement, or orders the termination of this Agreement and/or the
curtailment in any manner material to the relationship between the parties to
this Agreement of the provision of programming by Programmer, as a result of the
conduct or programming of Licensee, or its employees or agents (excluding
Programmer).

                           19.1.1 OF PROGRAMMER. Subject to Section 16,
Programmer is responsible for all costs of defending the license of the Station
to the extent any court of competent jurisdiction or any federal, state or local
governmental authority designates a hearing with respect to the continuation or
renewal of any license or authorization held by Licensee for the operation of
the Station, advises any party to this Agreement of its intention to investigate
or to issue a challenge to or a complaint concerning the activities permitted by
this Agreement, or orders the termination of this Agreement and/or the
curtailment in any manner material to the relationship between the parties to
this Agreement of the provision of programming by Programmer, as a result of the
conduct or programming of Programmer or its employees or agents (excluding
Licensee).

                  19.2 EXISTENCE OF THE LMA. If the FCC designates the renewal
application of the Station for a hearing as a consequence of the existence of
this Agreement per se or for any reason other than as a result of the conduct or
programming of Programmer, Licensee, subject to Section 16, shall be responsible
for its expenses incurred as a consequence of the FCC proceeding; provided,
however, that the Programmer shall cooperate and comply with any reasonable
request of Licensee to assemble and provide to the FCC information relating to
the Programmer's performance under this Agreement. Upon termination following
such governmental order(s),

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Licensee shall reasonably cooperate with the Programmer to the extent permitted
to enable the Programmer to fulfill advertising or other programming contracts
then outstanding. Licensee shall retain all revenue for programming, spots,
announcements, or features broadcast on the Station after the termination of
this Agreement pursuant to such governmental order(s).

         20. REPRESENTATIONS AND WARRANTIES.

                  20.1 MUTUAL REPRESENTATIONS AND WARRANTIES. Each of Licensee
and the Programmer represents to the other that (a) it is, or as of the
Commencement Date will be, an entity legally qualified and in good standing in
all applicable jurisdictions and is or, as of the Commencement Date will be,
qualified to do business and in good standing with the State of California (b)
it is fully qualified, empowered, and able to enter into this Agreement, (c)
this Agreement has been approved by all necessary corporate and partnership
action and that this Agreement constitutes the valid and binding obligation of
such party, enforceable in accordance with the terms of this Agreement subject
only to applicable bankruptcy, reorganization, insolvency or similar laws
affecting creditors' rights generally; (d) the execution, delivery and
performance hereof does not constitute a breach or violation of any agreement,
contract or other obligation to which such party is subject or by which it is
bound, or does not constitute a default under or result in the creation of any
lien, charge or encumbrance upon any property or assets of Programmer or
Licensee, or violate any law, regulation, judgment or order binding upon
Programmer or Licensee; (e) no consent of any other party, and no consent,
license, approval or authorization of, or exemption by, or filing, restriction
or declaration with, any governmental authority, bureau, agency or regulatory
authority is required in connection with the execution, delivery, validity or
enforceability of this Agreement; and (f) No proceeding is pending against
Programmer or Licensee, or, to the knowledge of Programmer or Licensee,
threatened before any court or governmental agency to restrain or prohibit, or
to obtain damages, or other relief in connection with this Agreement or the
consummation of the transactions contemplated hereby. Programmer represents that
except for Gary Stevens & Co., it has not engaged a media broker in connection
with this Agreement; Licensee represents that it has not engaged a media broker
in connection with this Agreement and Programmer and Licensee each agrees to
indemnify the other and hold the other harmless against any claim any media
broker or finder based upon any agreement, arrangement, or understanding alleged
to have been made by Programmer or by Licensee, as the case may be.

                  20.2 REPRESENTATIONS, WARRANTIES AND COVENANTS OF LICENSEE.
Licensee makes the following additional representations, warranties and
covenants:

                           20.2.1 AUTHORIZATIONS. Licensee owns and holds all
licenses and other permits and authorizations necessary for the operation of the
Station as presently conducted (including licenses, permits and authorizations
issued by the FCC), and such licenses, permits and authorizations will be in
full force and effect for the entire term, unimpaired by any acts or omissions
of Licensee, its principals, employees or agents. There is not now pending or,
to Licensee's best knowledge, threatened, any action by the FCC or other party
to revoke, cancel, suspend, refuse to renew or modify adversely any of such
licenses, permits or authorizations, and,

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to Licensee's best knowledge, no event has occurred that allows or, after notice
or lapse of time or both, would allow, the revocation or termination of such
license, permits or authorizations or the imposition of any restriction thereon
of such a nature that may limit the operation of the Station as presently
conducted. Licensee has no reason to believe that any such license, permit or
authorization will not be renewed during the term of this Agreement in its
ordinary course. Licensee is not in violation of any statute, ordinance, rule,
regulation, order or decree of any federal, state, local or foreign governmental
agency, court or authority having jurisdiction over it or over any part of its
operations or assets, which default or violation would have an adverse effect on
Licensee or its assets or on its ability to perform this Agreement.

                           20.2.2 FILINGS. All material reports and applications
required to be filed with the FCC or any other governmental agency, department
or body in respect of the Station have been, and in the future will be, filed in
a timely manner and are and will be true and complete and accurately present the
information contained therein. All such reports and documents, to the extent
required to be kept in the public inspection files of the Station, are and will
be kept in such files. Upon request by Licensee, Programmer shall provide in a
timely manner any such information or documents in its possession which will
enable Licensee to prepare, file or maintain the records and reports required by
the FCC.

                           20.2.3 FACILITIES. Subject to the terms hereof, the
Station's facilities will be maintained at the expense of Licensee and will
comply and be operated, in all material respects, in accordance with the maximum
facilities permitted by the FCC authorizations for the Station and with good
engineering standards necessary to deliver a high quality technical signal to
the area served by the Station, and with all applicable laws and regulations
(including the requirements of the Communications Act of 1934 and the rules,
regulations, policies and procedures of the FCC promulgated thereunder). All
capital expenditures reasonably required to maintain the quality of the
Station's signal shall be made promptly at the expense of Licensee, subject to
prompt reimbursement by Programmer of such expenditures if they are undertaken
in furtherance of the improved or continued delivery of Programmer's Programming
over the Station and Programmer has consented to such reimbursement in advance,
which consent shall not be unreasonably withheld or delayed.

                           20.2.4 TITLE TO PROPERTIES. Licensee has, and will
throughout the term hereof maintain, good and marketable title to all of the
assets and properties including, without limitation, real property, used in the
operation of the Station, free and clear of any liens, claims or security
interests that would affect adversely Licensee's performance hereunder or the
business and operations of Programmer permitted hereby. Except in the ordinary
course of business of the Station consistent with past practices, Licensee will
not dispose of, transfer, assign or pledge any such asset, except with the prior
written consent of Programmer, if such action would affect adversely Licensee's
performance hereunder or the business and operations of Programmer permitted
hereby.

                           20.2.5 PAYMENT OF OBLIGATIONS. Licensee shall pay in
a timely fashion all of its debts, assessments and obligations, including
without limitation tax liabilities and payments

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attributable to the operations of the Station, as they come due from and after
the effective date of this Agreement, to the extent failure to do so will affect
Programmer's rights under this Agreement.

                           20.2.6 INSURANCE. Licensee will maintain in full
force and effect throughout the term of this Agreement insurance with
responsible and reputable insurance companies fire and extended coverage and
liability insurance and such other insurance as may be required by law or
consistent with past practice of the Station. Except as otherwise permitted by
the Purchase Agreement, any insurance proceeds received by Licensee in respect
of damaged property will be used to repair or replace such property so that the
operations of the Station conform with this Agreement.

                  20.3. PROGRAMMER'S REPRESENTATIONS, WARRANTIES AND COVENANTS.

                           20.3.1 COMPLIANCE WITH 47 C.F.R. SEC.
73.3555(A)(2)(II). Programmer hereby verifies that this Agreement complies with
the FCC's restrictions on local and national multiple station ownership set out
in Section 73.3555(a)(1) and (e)(1) of the FCC Rules.

                           20.3.2 COMPLIANCE WITH APPLICABLE LAW. Programmer's
performance of its obligations under the Agreement and its furnishing of
Programming will be in compliance with, and will not violate, any applicable
laws or any applicable rules, regulations, or orders of the FCC or any other
governmental agency.

                           20.3.3 FCC QUALIFICATIONS. Programmer has no
knowledge after due inquiry of any facts concerning Programmer or any other
person with an attributable interest in Programmer (as such term is defined
under the Rules and Regulations of the FCC) which, under present law (including
the Communications Act of 1934, as amended ("the Act")) and the Rules and
Regulations of the FCC, would disqualify Programmer from being the holder of the
FCC Licenses, the owner of the Sale Assets or the operator of the Station upon
consummation of the transactions contemplated by this Agreement; or raise a
substantial and material question of fact (within the meaning of Section 309(e)
of the Act) respecting Programmer's qualifications.

                           20.3.4 COMPLIANCE WITH COPYRIGHT ACT. Programmer
represents and warrants that Programmer has full authority to broadcast its
programming on the Station and the Programmer shall not broadcast any material
in violation of any law, rule, regulation or the Copyright Act. Programmer
acknowledges that it is solely responsible for payment of any public performance
music license fees or royalties for music contained in the Programming, spots,
announcements, features or any other programming of Programmer including,
without limitation, fees payable to ASCAP, BMI and/or SESAC.

         21. OPTION RIGHT FOR THE STATION.

                  21.1 OPTION RIGHT. At any time prior to the Termination Date,
and provided Programmer is not in default under this Agreement, Programmer shall
have the right (the "Option

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Right") to purchase the Station pursuant to the Asset Purchase Agreement
attached hereto as Exhibit "A" (the "Asset Purchase Agreement").

                  21.2 EXERCISE OF OPTION RIGHT. The Option Right may only be
exercised by the Programmer's delivery to the Licensee prior to the Termination
Date of written notice of exercise of the Option Right (in either case, the
"Exercise Notice"). The Exercise Notice shall state that the Option Right is
exercised without condition or qualification other than (i) the receipt of any
required approval of the FCC for the assignment of the Station's FCC licenses
pursuant hereto, and (ii) the satisfaction of all conditions set forth in the
Asset Purchase Agreement. Within five (5) business days following delivery of
the Exercise Notice, Licensee shall deliver the Asset Purchase Agreement duly
executed by Licensee to Programmer.

                  21.3 SURVIVAL OF OPTION RIGHT UPON TERMINATION OF PROGRAMMING
ARRANGEMENT. In the event Programmer's right to program the Station under this
Agreement is terminated for any reason other than the fault or default of
Programmer, Programmer may, within thirty (30) days following such termination,
give notice, pursuant to Section 21.2 hereof, of its intention to purchase the
assets of the Station on the terms and conditions set forth in the Asset
Purchase Agreement. In the event Programmer does not give such notice within
such thirty (30) day period, the Option Right shall terminate.

                  21.4 LICENSEE'S WARRANTIES. Licensee warrants and represents
to Programmer that:

                           (a) At Closing (as defined in the Asset Purchase
Agreement) Licensee will have, good, marketable and indefeasible title to and
full power of disposition over the Sale Assets (as defined in the Asset Purchase
Agreement), and the full right to sell and transfer to Programmer all of the
Sale Assets without the requirement of obtaining the consent or approval of any
other person, entity, agency or authority except the FCC.

                           (b) Except for any liens created by the recording of
this Agreement, the Sale Assets will be free of all liens, claims, debts or
other encumbrances at Closing.

                  21.5 LICENSEE'S COVENANTS. Licensee covenants that, commencing
on the Commencement Date hereof and continuing through the Termination Date, the
Station shall be operated in accordance with the covenants set forth in Section
5.1 of the Asset Purchase Agreement, which covenants are incorporated herein by
reference.

         22. MODIFICATION AND WAIVER. No modification or waiver of any provision
of this Agreement shall be effective unless made in writing and signed by the
party adversely affected, and any such waiver and consent shall be effective
only in the specific instance and for the purpose for which such consent was
given.

         23. NO WAIVER: REMEDIES CUMULATIVE. No failure or delay on the part of
Licensee or the Programmer in exercising any right or power under this Agreement
shall operate as a waiver

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thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the parties to this Agreement are
cumulative and are not exclusive of any right or remedies which either may
otherwise have.

         24. CONSTRUCTION. This Agreement shall be construed in accordance with
the laws of the State of California. The obligations of the parties to this
Agreement are subject to all federal, state or local laws or regulations,
including those of the FCC, now or hereafter in force.

         25. HEADINGS. The headings contained in this Agreement are included for
convenience only and shall not in any way alter the meaning of any provision.

         26. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns.
Neither party may assign any of its rights or obligations under this Agreement
without the prior written consent of the other party, except that Programmer may
assign its rights and obligations, or any of them, to an entity controlled by or
under common control with Programmer without the prior written consent of
Licensee.

         27. COUNTERPART SIGNATURES. This Agreement may be signed in one or more
counterparts, each of which shall be deemed a duplicate original and be binding
on the parties to this Agreement.

         28. NOTICES. Any notice required hereunder shall be in writing and
shall be sufficiently given if delivered by a nationally recognized overnight
delivery service or sent by registered or certified mail, first class postage
prepaid, or by telegram, facsimile or similar means of communication, addressed
as follows:

         If to Licensee, to:

                           Concord Media Group, Inc.
                           11521 Infields Drive
                           Odessa, FL 33556
                           Attn:  Mark Jorgensen
                           Telephone: (813) 926-9260
                           Facsimile: (813) 926-9001

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         Copy to:

                           Mr. Lee Shubert, Esq.
                           Rosenman & Colin LLP
                           805 15th Street, N.W.
                           9th Floor
                           Washington, DC 20005-2202
                           Telephone: 202-216-4695
                           Facsimile: 202-216-4700

         If to the Programmer, to:

                           c/o Salem Communications Corporation
                           4880 Santa Rosa Road, Suite 300
                           Camarillo, California  93012
                           Telephone: (805) 987-0400
                           Facsimile No.: (805) 384-4505
                           Attention: Jonathan L. Block, Esq.
                                      Corporate Counsel

                  28.1. ALTERNATE ADDRESSEES. Notice, as provided by this
Section, may be given to any other person or party, as any party hereto may in
the future designate in writing, upon due notice to the other party(ies).

                  28.2. DATE OF NOTICE, ACTION. The date of delivery by hand, or
the postal receipt for deposit with the U.S. Mail or courier service specified
herein shall establish the date of such notification or communication. If any
notification, communication or action is required or permitted to be given or
taken within a certain period of time and the last date for doing so falls on a
Saturday, Sunday, a federal legal holiday or legal holiday by law in the State
of California, the last day for such notification, communication or action shall
be extended to the first date thereafter which is not a Saturday, Sunday or such
legal holiday.

         29. EXPENSES; ATTORNEY'S FEES. In the event any action is filed with
respect to this Agreement, the prevailing party shall be reimbursed by the other
party for all its actual costs and expenses incurred in connection with the
action, including without limitation reasonable attorney's fees.

         30. ENTIRE AGREEMENT. This Agreement embodies the entire agreement
between the parties and there are no other agreements, representations,
warranties, or understandings, oral or written, between them with respect to the
subject matter hereof.

         31. SPECIFIC PERFORMANCE. Licensee acknowledges that the Station is of
a special, unique, and extraordinary character, and that any breach of this
Agreement by Licensee could not be compensated for by damages. Accordingly, if
Licensee shall breach its obligations under this Agreement, Programmer shall be
entitled, in addition to any of the remedies that it may have, to

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enforcement of this Agreement (subject to obtaining any required approval of the
FCC) by decree of specific performance or injunctive relief requiring Licensee
to fulfill its obligations under this Agreement. In any action by Programmer to
equitably enforce the provisions of this Agreement, Licensee shall waive the
defense that there is an adequate remedy at law or equity and agrees that
Programmer shall have the right to obtain specific performance of the terms of
this Agreement without being required to prove actual damages, post bond or
furnish other security.

         32. BROKERAGE FEES. Any and all commissions, fees, costs, and expenses
and related amounts due Gary Stevens & Co. and any other broker, agent, finder
or other similarly situated party arising out of the transactions set forth in
this Agreement and the Asset Purchase Agreement, shall be paid and borne
exclusively by Programmer.

         33. TIME OF THE ESSENCE. Time is of the essence with respect to all
rights and obligations of this Agreement.

         34. RESOLUTION OF CLAIMS AND DISPUTES. Regardless of the place of
execution, this Agreement shall be deemed to be a contract made in San Diego,
California and shall be interpreted as a contract to be performed wholly in the
State of California. The law of the State of California shall be applied without
regard to the principles of conflicts of laws. Each party expressly waives any
presumption or rule, if any, which requires this Agreement and/or any other
Agreement to be construed against the drafting party. Any claims or disputes
arising out of or relating to this Agreement shall be resolved only by mediation
or, if mediation does not resolve the claim or dispute within ten (10) days of
notice demanding mediation, by arbitration in accordance with the Rules of
Procedure for Commercial Arbitration of the American Arbitration Association and
any award therefrom shall be rendered by the arbitrators as a judgment in any
trial court having jurisdiction in the city of San Diego, California, or of any
other court having competent jurisdiction.

         35. NO WAIVER; REMEDIES CUMULATIVE. No failure or delay on the part of
Licensee or Programmer in exercising any right or power hereunder shall operate
as a waiver thereof, nor any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or
power, shall preclude any other or further exercise thereof or the exercise of
any other right or power. The rights and remedies of Licensee and Programmer
herein provided are cumulative and are not exclusive of any rights or remedies
which they may otherwise have.

         36. CONFIDENTIALITY. Subject to the requirements of applicable law,
Programmer and Licensee shall each keep confidential all information obtained by
it with respect to the other parties hereto in connection with this Agreement
and the negotiations preceding this Agreement, and will use such information
solely in connection with the transactions contemplated by this Agreement.
Notwithstanding the foregoing, no party will be required to keep confidential or
return any information which: (i) is known or available through other lawful
sources, not known to the disclosing party to be bound by a confidentiality
agreement with the disclosing party; (ii) is or becomes publicly known through
no fault of the receiving party or its agents; (iii) is

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required to be disclosed pursuant to a valid order of a judicial or governmental
authority (provided the disclosing party is given reasonable prior notice of the
order or request and the purpose of disclosure); or (iv) is developed by the
receiving party independently of the disclosure by the disclosing party.

         37. EXPLICATION. Unless the context of this Agreement clearly requires
otherwise, references to the plural include the singular and to the singular
include the plural, references to any gender include any other gender, the part
includes the whole, the term "including" is not limiting, and the term "or" has,
except where otherwise indicated, the inclusive meaning represented by the
phrase "and/or." The words "hereof," "herein," "hereby," "hereunder," and
similar terms in this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement. Article, section, subsection,
clause, exhibit and schedule references are to this Agreement, unless otherwise
specified. Any reference in or to this Agreement or any of the ancillary
agreements includes any and all permitted alterations, amendments, changes,
extensions, modifications, renewals, or supplements thereto or thereof, as
applicable.

         38. NO JOINT VENTURE. The parties agree that nothing herein shall
constitute a joint venture between them. The parties acknowledge that call
letters, trademarks and other intellectual property shall at all times remain
the property of the respective parties and, except as provided in Section 21,
that neither party shall obtain any ownership interest in the other party's
intellectual property by virtue of this Agreement.

         39. COOPERATION. Each party will cooperate with the other with respect
to establishing and attaining the strategic and operational goals of the
Station.

         40. DISPUTES; FINAL TERMINATION. In the event Programmer or Licensee in
good faith contests any basis for termination exercised pursuant to this
Agreement, the termination shall not become effective until the dispute is
arbitrated as provided herein. In the event the Licensee terminates the
Agreement for any reason other than non-payment of the Monthly Fee, the
Agreement shall continue in effect until the dispute is arbitrated, as provided
herein, only so long as Programmer continues to make payments as provided by
SECTION 1 of this Agreement. Any dispute concerning termination pursuant to this
Agreement shall be resolved by binding arbitration pursuant to the rules of the
American Arbitration Association. The prevailing party shall be entitled to
reimbursement from the non-prevailing party of all reasonable expenses actually
incurred to comply with this arbitration provision. The prevailing party shall
mean the party that is successful in obtaining substantially all the relief
sought. In the event of a dispute under this Agreement, Programmer shall satisfy
its payment obligations under SECTION 2 if payments during the dispute are made
by Programmer to a Dispute Escrow Agent who shall act as fiduciary to the
Programmer and Licensee. Unless otherwise hereafter provided, the Dispute Escrow
Agent shall be GARY STEVENS & CO. Should the Programmer be the party seeking
termination of this Agreement, and in the event the Programmer is declared to be
the prevailing party, then any payments made by Programmer, under SECTION 2 of
this Agreement, during the term the dispute is being arbitrated shall be
refunded by Licensee to Programmer by not later than the tenth (10th) day after
the decision of the arbitrator(s) is issued.

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         41. CONSTRUCTION OF AGREEMENT. This Agreement is the product of
negotiation and preparation by, between and among Programmer and Licensee and
their respective attorneys. Accordingly, the parties hereto acknowledge and
agree that this Agreement shall not be deemed prepared or drafted by one party
or another, and shall be construed accordingly.

         42. FURTHER ASSURANCES. After the Commencement Date, each of the
parties, upon the reasonable request of the other, will take such reasonable
actions or deliver or execute such further documents, materials, signatures, or
information as may be reasonably necessary to assure compliance with, or
effectuation of, the terms and conditions to this Agreement and the bona fide
good faith intentions of the parties hereto.

         43. SCHEDULES AND EXHIBITS. All schedules, exhibits and riders attached
to this Agreement shall be deemed part of this Agreement and incorporated
herein, where applicable, as if full set forth herein.

         44. ACCOUNTING PERIODS; ADJUSTMENTS AND PRORATIONS. For the purposes of
this Agreement, and except as otherwise provided herein, the allocation of
accounts receivable and accounts payable for the time preceding the Commencement
Date shall be made effective as of 12:01 AM, Pacific Time, on the Commencement
Date; to wit: all accounts payable and accounts receivable for the period prior
to the Commencement Date, shall be the responsibility of, and belong to
Licensee, and all accounts payable and accounts receivable for the period on or
after Commencement Date, through and including the Termination Date, shall be
the responsibility of Programmer. All taxes, accrued, rents, deposits, power and
utility charges, obligations under agreements, prepaid items and expenses and
similar items applicable to the Station shall be allocated among Programmer and
Licensee effective as of 12:01 AM on the Commencement Date and the Termination
Date. As of 12:01 AM Pacific Time on the Commencement Date, the expenses shall
be prorated in accordance with generally accepted accounting principles and
shall include, but not be limited to, the following: (i) If Licensee shall not
have paid through the Commencement Date, all utility charges such as telephone,
electricity and gas, Programmer shall be entitled to a credit therefor based
upon the last paid bills for similar charges; (ii) Licensee shall be entitled to
a credit for the unearned portion of insurance premiums on policies which
Programmer may elect to assume; (iii) Licensee shall prorate with Programmer for
accrued personal property, real estate and any other taxes based upon the last
ascertainable tax bill; and (iv) Programmer shall be allowed credit as to any
prepayment received by Licensee for services to be rendered by Programmer on or
after the Commencement Date. Licensee shall be allowed credit for services
rendered by it for which payment will be received by Programmer on or after the
Commencement Date. The Licensee's accountants and the Programmer's accountants
shall attempt in good faith to resolve any disputes to such adjustments. In the
event such accountants are unable to resolve any such disputes within thirty
(30) days after the realization by the parties of the existence of a dispute,
then such dispute shall be resolved by a third party accounting firm to be
selected, within ten (10) days of the realization of the dispute, by the
respective accountants for Programmer and Licensee (the fees of such third party
accounting firm shall be paid equally by the disputing parties), and any such
determination of the third party accounting firm shall be binding and conclusive
on the disputing parties.

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

"LICENSEE"                                  "PROGRAMMER "

CONCORD MEDIA GROUP, INC.                   RADIO 1210, INC.

By:   /s/ Mark Jorgenson                    By:  /s/ Eric H. Halvorson
   ----------------------------------           --------------------------------
Name:   Mark Jorgenson                              Eric H. Halvorson
Title:  President                                   Executive Vice President

                                       21

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