Document:

exv10w2

 

EXHIBIT 10.2

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

CHERRY CREEK RADIO LLC

“BUYER”

AND

FISHER COMMUNICATIONS INC.

“PARENT”

AND

FISHER RADIO REGIONAL GROUP INC.

“SELLER”

May 30, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page No.	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Singular/Plural; Gender
	 	 	12	 
	ARTICLE 2 PURCHASE AND SALE AND ASSUMPTION OF LIABILITIES
	 	 	12	 
	2.1 Purchase and Sale
	 	 	12	 
	2.2 Payments and Assumption of Liabilities
	 	 	13	 
	2.3 Closing Date; Bifurcated Closings
	 	 	13	 
	2.4 Closing Date Deliveries
	 	 	14	 
	2.5 Proration Adjustments
	 	 	15	 
	2.6 Escrow Reserve
	 	 	18	 
	2.7 Non-Assumption of Liabilities
	 	 	18	 
	2.8 Taxes
	 	 	19	 
	2.9 Risk of Loss
	 	 	19	 
	2.10 Allocation of Purchase Price
	 	 	19	 
	2.11 Accounts Receivable
	 	 	20	 
	2.12 Section 1031 Exchanges
	 	 	21	 
	ARTICLE 3 GOVERNMENTAL APPROVALS AND CONTROL OF STATIONS
	 	 	22	 
	3.1 FCC Consent
	 	 	22	 
	3.2 Application For FCC Consent
	 	 	22	 
	3.3 Notice of Application
	 	 	22	 
	3.4 Delay in Approval of Application
	 	 	22	 
	3.5 Other Governmental Consents
	 	 	23	 
	3.6 Great Falls Waiver
	 	 	23	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE FISHER PARTIES
	 	 	23	 
	4.1 Organization
	 	 	23	 
	4.2 Authorization; Enforceability
	 	 	23	 
	4.3 Absence of Conflicting Agreements
	 	 	24	 
	4.4 Purchased Assets
	 	 	24	 
	4.5 Title to Purchased Assets; Liens and Encumbrances
	 	 	25	 
	4.6 Condition of Equipment
	 	 	25	 
	4.7 Contracts
	 	 	25	 
	4.8 Intangible Property
	 	 	26	 
	4.9 Real Property
	 	 	27	 
	4.10 Leases
	 	 	29	 
	4.11 Financial Statements and Interim Financial Statements
	 	 	29	 
	4.12 No Changes
	 	 	30	 
	4.13 Undisclosed Liabilities
	 	 	31	 
	4.14 No Litigation; Labor Disputes; Compliance with Laws
	 	 	31	 
	4.15 Taxes
	 	 	32	 
	4.16 Governmental Authorizations
	 	 	32	 
	4.17 Pending Applications
	 	 	33	 
	4.18 Compliance with FCC Requirements
	 	 	33	 
	4.19 Qualification
	 	 	33	 
	4.20 Insurance
	 	 	33	 

i

 

	 	 	 	 	 
	 	 	Page No.	 
	4.21 Brokers
	 	 	33	 
	4.22 Powers of Attorney
	 	 	34	 
	4.23 Employees
	 	 	34	 
	4.24 Employee Benefit Plans
	 	 	34	 
	4.25 Environmental Compliance
	 	 	35	 
	4.26 Representation as of the Closing Date
	 	 	36	 
	4.27 Records
	 	 	36	 
	4.28 Insolvency
	 	 	36	 
	4.29 Related Party Transactions
	 	 	37	 
	4.30 Disclosure
	 	 	37	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	37	 
	5.1 Organization
	 	 	37	 
	5.2 Authorization; Enforceability
	 	 	37	 
	5.3 Absence of Conflicting Agreements
	 	 	37	 
	5.4 Brokers
	 	 	38	 
	5.5 Buyer’s Qualifications
	 	 	38	 
	5.6 Insolvency
	 	 	38	 
	5.7 Representation as of the Closing Date
	 	 	38	 
	5.8 Disclosure
	 	 	38	 
	ARTICLE 6 COVENANTS
	 	 	38	 
	6.1 Access
	 	 	38	 
	6.2 Title Insurance; Surveys and Lien Search
	 	 	39	 
	6.3 Notice of Adverse Changes
	 	 	41	 
	6.4 Operations Pending Closing
	 	 	42	 
	6.5 Financial and FCC Reports
	 	 	45	 
	6.6 Consents
	 	 	45	 
	6.7 Cooperation
	 	 	45	 
	6.8 Tax Returns and Payments
	 	 	45	 
	6.9 Updating of Information; Cure
	 	 	46	 
	6.10 Conveyance Free and Clear of Liens
	 	 	46	 
	6.11 Financing Leases
	 	 	46	 
	6.12 Access to and Conversion of Data
	 	 	46	 
	6.13 Cooperation for Financing
	 	 	46	 
	6.14 Public Announcement
	 	 	46	 
	6.15 Restrictions on Buyer
	 	 	47	 
	6.16 Correction of coordinates
	 	 	47	 
	ARTICLE 7 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER
	 	 	47	 
	7.1 Compliance with Agreement
	 	 	47	 
	7.2 Proceedings and Instruments Satisfactory
	 	 	47	 
	7.3 Representations and Warranties
	 	 	47	 
	7.4 No Material Adverse Change
	 	 	48	 
	7.5 Event of Loss
	 	 	48	 
	7.6 Deliveries at Closing
	 	 	48	 
	7.7 Other Documents
	 	 	48	 
	7.8 Possession; Instruments of Conveyance and Transfer
	 	 	48	 
	7.9 Approvals and Consent
	 	 	48	 

ii

 

	 	 	 	 	 
	 	 	Page No.	 
	7.10 Title Policies; Survey; Lien Search Report and Environmental Report
	 	 	48	 
	7.11 Absence of Investigations and Proceedings
	 	 	48	 
	7.12 Governmental Consents
	 	 	49	 
	7.13 Licenses
	 	 	49	 
	7.14 Absence of Liens; Payoff Letters
	 	 	49	 
	7.15 Non-Foreign Affidavit
	 	 	49	 
	7.16 Governmental Consents
	 	 	49	 
	ARTICLE 8 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER
	 	 	50	 
	8.1 Compliance with Agreement
	 	 	50	 
	8.2 Proceedings and Instruments Satisfactory
	 	 	50	 
	8.3 Representations and Warranties
	 	 	50	 
	8.4 Deliveries at Closing
	 	 	50	 
	8.5 Other Documents
	 	 	50	 
	8.6 Absence of Investigations and Proceedings
	 	 	50	 
	8.7 Governmental Consents
	 	 	50	 
	ARTICLE 9 INDEMNIFICATION
	 	 	51	 
	9.1 Indemnification of Buyer
	 	 	51	 
	9.2 Indemnification of Fisher Parties
	 	 	52	 
	9.3 Method of Asserting Claims
	 	 	53	 
	9.4 Payment of Claims
	 	 	54	 
	9.5 Nature and Survival of Representations
	 	 	54	 
	9.6 Limitation on Aggregate Claims
	 	 	54	 
	ARTICLE 10 FURTHER AGREEMENTS
	 	 	55	 
	10.1 Event of Loss
	 	 	55	 
	10.2 Station Employees
	 	 	56	 
	10.3 WARN Act
	 	 	57	 
	10.4 Bulk Transfer
	 	 	57	 
	ARTICLE 11 TERMINATION; MISCELLANEOUS
	 	 	57	 
	11.1 Termination
	 	 	57	 
	11.2 Rights on Termination; Waiver
	 	 	58	 
	11.3 Further Assurances
	 	 	59	 
	11.4 Schedules
	 	 	59	 
	11.5 Survival
	 	 	59	 
	11.6 Entire Agreement; Amendment; and Waivers
	 	 	59	 
	11.7 Expenses
	 	 	60	 
	11.8 Benefit; Assignment
	 	 	60	 
	11.9 Confidentiality; Public Announcements
	 	 	60	 
	11.10 Exclusivity
	 	 	61	 
	11.11 Notices
	 	 	61	 
	11.12 Counterparts; Headings
	 	 	62	 
	11.13 Income Tax Position
	 	 	62	 
	11.14 Severability
	 	 	62	 
	11.15 Electronic Notices, Signatures or Records
	 	 	62	 
	11.16 Legal Actions
	 	 	62	 

iii

 

LIST OF EXHIBITS

	 	 	 	 	 
	Exhibit A

	 	—
	 	Assumption Agreement
	 
	 	 	 	 
	Exhibit B

	 	—
	 	Bill of Sale and Assignment
	 
	 	 	 	 
	Exhibit C

	 	—
	 	Buyer’s Closing Certificate
	 
	 	 	 	 
	Exhibit D

	 	—
	 	Escrow Agreement
	 
	 	 	 	 
	Exhibit E

	 	—
	 	Assignment and Assumption of Contracts
	 
	 	 	 	 
	Exhibit F

	 	—
	 	Assignment and Assumption of Leases
	 
	 	 	 	 
	Exhibit G

	 	—
	 	Assignment of Licenses, Permits, and Authorizations
	 
	 	 	 	 
	Exhibit H

	 	—
	 	Fisher Parties’ Closing Certificate
	 
	 	 	 	 
	Exhibit I-1

	 	—
	 	Fisher Parties’ Opinion of Counsel
	 
	 	 	 	 
	Exhibit I-2

	 	—
	 	Opinion of FCC Counsel
	 
	 	 	 	 
	Exhibit J-1

	 	—
	 	Intangible Property Assignment
	 
	 	 	 	 
	Exhibit J-2

	 	—
	 	Assignment and Assumption of Registered Trademarks
	 
	 	 	 	 
	Exhibit K

	 	—
	 	Intentionally Omitted
	 
	 	 	 	 
	Exhibit L

	 	—
	 	Form of Estoppel Certificate
	 
	 	 	 	 
	Exhibit M

	 	—
	 	Form of Non-Compete/Non-Solicit Agreement
	 
	 	 	 	 
	Exhibit N-1

	 	—
	 	Form of Warranty Deed for Montana
	 
	 	 	 	 
	Exhibit N-2

	 	—
	 	Form of Warranty Deed for Washington

iv

 

LIST OF SCHEDULES

	 	 	 	 	 
	Schedule 1.0

	 	—
	 	List of Stations
	Schedule 1.1

	 	—
	 	Assumed Liabilities
	Schedule 1.2

	 	—
	 	Contracts
	Schedule 1.3

	 	—
	 	Intangible Property
	Schedule 1.4

	 	—
	 	Equipment
	Schedule 1.5

	 	—
	 	Leases
	Schedule 1.6

	 	—
	 	Licenses
	Schedule 1.7

	 	—
	 	Motor Vehicles
	Schedule 1.8

	 	—
	 	Real Property
	Schedule 1.9

	 	—
	 	Retained Assets
	Schedule 2.1

	 	—
	 	Permitted Liens
	Schedule 2.10

	 	—
	 	Allocation of Purchase Price
	Schedule 4.3

	 	—
	 	Conflicting Agreements
	Schedule 4.4

	 	—
	 	Matters Relating to Purchase Assets
	Schedule 4.5

	 	—
	 	Liens
	Schedule 4.6

	 	—
	 	Condition of Equipment
	Schedule 4.7

	 	—
	 	Matters Relating to Contracts
	Schedule 4.8

	 	—
	 	Matters Relating to Intangible Property
	Schedule 4.9

	 	—
	 	Matters Relating to Real Property
	Schedule 4.10

	 	—
	 	Matters Relating to Leases
	Schedule 4.11(a)

	 	—
	 	Financial Statements
	Schedule 4.11(b)

	 	—
	 	Interim Financial Statements
	Schedule 4.12

	 	—
	 	No Changes
	Schedule 4.13

	 	—
	 	Undisclosed Liabilities
	Schedule 4.14

	 	—
	 	Litigation, Labor Matters and Compliance with Laws
	Schedule 4.15

	 	—
	 	Taxes
	Schedule 4.16

	 	—
	 	Governmental Authorizations
	Schedule 4.17

	 	—
	 	Pending Applications
	Schedule 4.18

	 	—
	 	Compliance with FCC Requirements
	Schedule 4.20

	 	—
	 	Insurance
	Schedule 4.22

	 	—
	 	Powers of Attorney
	Schedule 4.23

	 	—
	 	Employees
	Schedule 4.24

	 	—
	 	Employee Benefit Plans
	Schedule 4.25

	 	—
	 	Environmental Matters
	Schedule 4.29

	 	—
	 	Related Party Transactions
	Schedule 6.10

	 	—
	 	Liens Not to be Released

v

 

PURCHASE AND SALE AGREEMENT

This PURCHASE AND SALE AGREEMENT is made as of the 30th day of May, 2006, by and among Cherry Creek
Radio LLC, a limited liability company organized under the laws of the State of Delaware (“Buyer”),
Fisher Communications Inc., a corporation organized under the laws of the State of Washington
(“Parent”), and Fisher Radio Regional Group Inc., a corporation organized under the laws of the
State of Washington (“Seller”).

R E C I T A L S:

     WHEREAS, Seller holds certain licenses, permits and authorizations issued by the Federal
Communications Commission for the operation of the radio broadcast stations specified on
SCHEDULE 1.0 hereto (individually, a “Station” and collectively, the “Stations”) and owns
the assets used or useful in the operation of the Stations; and

     WHEREAS, Seller desires to sell or assign and Buyer desires to purchase the assets of the
Stations, including the Licenses (as defined below), and to assume certain liabilities and
obligations of Seller, as more fully described and on the terms and subject to the conditions set
forth herein.

     NOW, THEREFORE, in consideration of the above recitals and of the mutual agreements and
covenants contained in this Agreement, the parties, intending to be legally bound, hereby agree as
follows:

ARTICLE 1

DEFINITIONS

     1.1 Definitions. When used in this Agreement, the following terms shall have the
meanings specified:

          “Accountants” shall have the meaning set forth in Section 2.5(g).

          “Accounts Receivable” shall mean all trade accounts receivable of Seller immediately
prior to the Closing, as determined in accordance with GAAP.

          “Adjustment Amount” shall have the meaning set forth in Section 2.5(f).

          “Adjustment List” shall have the meaning set forth in Section 2.5(f).

          “Affiliate” shall mean, with respect to any Person, any other Person that, directly or
indirectly, Controls, is Controlled by, or is under common Control with, the specified Person.

          “Agreement” shall mean this Purchase and Sale Agreement, together with the Schedules
and the Exhibits attached hereto, as the same shall be amended from time to time in accordance with
the terms hereof.

1

 

          “Alternative Transaction” shall have the meaning set forth in Section 11.10.

          “Assignment Application” shall have the meaning set forth in Section 3.2.

          “Assumed Liabilities” shall mean the Transferred Obligations; provided,
however, that if a Bifurcated Closing occurs pursuant to Section 2.3(b), then “Assumed
Liabilities” shall mean (A) in the case of the Primary Closing, all of the Transferred Obligations
arising in connection with or otherwise relating to the Primary Stations and (B) in the case of the
Great Falls Closing, all of the Transferred Obligations arising in connection with or otherwise
relating to the Great Falls Stations.

          “Assumption Agreement” shall mean an instrument in the form of EXHIBIT A
attached hereto by which the Assumed Liabilities are to be accepted by Buyer.

          “Benefit Arrangements” shall mean a benefit program or practice providing for bonuses,
incentive compensation, vacation pay, severance pay, insurance, restricted stock, stock options,
employee discounts, company cars, tuition reimbursement or any other perquisite or benefit
(including, without limitation, any fringe benefit under Section 132 of the Code) to employees,
officers or independent contractors that is not a Plan.

          “Bifurcated Closing” shall have the meaning set forth in Section 2.3(b).

          “Bill of Sale and Assignment” shall mean an instrument in the form of EXHIBIT
B attached hereto, by which Seller will convey to Buyer title to the Purchased Assets.

          “Business” shall mean the assets, business and operations of the Stations conducted by
Seller but shall exclude the business, operations, assets and all other properties of Parent and
all other entities affiliated with Parent, to the extent not used primarily or in any material
manner in the operation of the Stations. For purposes of clarification, it is understood that an
asset of an entity that may have been indirectly used or assisted in the operation of the Stations
shall be excluded from the definition of “Business” if such asset is not used primarily in the
operation of the Stations, and is not physically located at the Stations.

          “Buyer” shall mean Cherry Creek Radio LLC, a Delaware limited liability company, its
successors or assigns.

          “Buyer Indemnified Parties” shall have the meaning set forth in Section 9.1.

          “Buyer’s Closing Certificate” shall mean a certificate of Buyer in the form of
EXHIBIT C attached hereto.

          “Buyer’s Information” shall have the meaning set forth in Section 11.9(b).

          “Cash” shall mean all monies of Seller relating to the Stations, whether in the form
of cash, cash equivalents, marketable securities or deposits in bank accounts prior to the Closing
Date.

          “Claims” shall have the meaning set forth in Section 9.1.

2

 

          “Closing” shall have the meaning set forth in Section 2.3(a).

          “Closing Date” shall have the meaning set forth in Section 2.3(b).

          “COBRA” shall have the meaning set forth in Section 4.24(b).

          “Code” shall mean the Internal Revenue Code of 1986, as amended.

          “Collection Period” shall have the meaning ascribed to it in Section 2.11(b).

          “Communications Act” shall have the meaning set forth in Section 4.16.

          “Communications Laws” shall have the meaning set forth in Section 4.16.

          “Consolidated Tradeout Credit” shall have the meaning set forth in Section 2.5(d).

          “Consultant” shall have the meaning set forth in Section 6.2(d)(I).

          “Contract Assignment” shall mean an instrument, in the form of EXHIBIT E
attached hereto, by which Seller assigns the Contracts to Buyer and Buyer assumes the then
remaining rights and obligations of Seller under the Contracts.

          “Contracts” shall mean (i) those agreements (other than those included in the Retained
Assets and other than the Leases) under which Seller conducts the business of the Stations,
including all contractual obligations incurred by Seller for the Program Rights, that are listed on
SCHEDULE 1.2 and (ii) contracts for the sale of advertising time on the Stations entered
into in the ordinary course of Seller’s business. Notwithstanding the foregoing definition, the
parties hereby acknowledge that those certain Contracts that are expressly identified on
SCHEDULE 1.2 as “Group Contracts” may benefit affiliates of Seller, and with respect to
those “Group Contracts” that are expressly identified on SCHEDULE 1.2, the definition of
“Contracts” for purposes of this Agreement shall only include and be limited to such terms of a
Contract, or portions thereof, as benefits Seller, and then only to the extent relating to the
Business or the Purchased Assets.

          “Control” including its various tenses and derivatives (such as “Controlled”
and “Controlling”) shall mean (i) when used with respect to any Person, the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of such entity, whether through the ownership of voting securities, by contract, agreement
or arrangement or otherwise and (ii) when used with respect to any security, the possession,
directly or indirectly, of the power to vote, or to direct the voting of, such security or the
power to dispose of, or to direct the disposition of, such security.

          “Customer Lists” shall mean all lists, documents, written information and computer
tapes and programs and other computer readable media in Seller’s possession concerning past,
present and potential purchasers of services from the Stations.

          “Environment” shall mean surface waters, ground waters, surface water sediment, soil,
subsurface strata, ambient air and other environmental medium.

3

 

          “Environmental Laws” shall mean the rules and regulations of the FCC, the
Environmental Protection Agency and any other federal, state or local government authority
pertaining to human exposure to RF radiation and all applicable rules and regulations of federal,
state and local laws, including statutes, regulations, ordinances, judicial or administrative
orders, consent decrees or judgments, codes, rules and policies, now or hereafter in effect and as
amended, relating to pollution or protection of the Environment, health, safety or natural
resources or to the use, handling, transportation, treatment, storage, disposal, release or
discharge of Regulated Substances.

          “Environmental Permit” shall mean any permit, license, certificate, approval,
identification number or other authorization required to operate the Business under applicable
Environmental Law.

          “Environmental Work” shall have the meaning ascribed to it in Section 6.2(d)(III).

          “Equipment” shall mean all machinery, equipment, furniture, fixtures, furnishings,
toolings, parts, tubes, tapes, microwaves, transponders, relays and other items of tangible
personal property of Seller used, held for use or useable in the operation of any Station,
including, but not limited to, those items listed on SCHEDULE 1.4, and excluding in all
cases the Retained Assets.

          “Equipment Claims” shall have the meaning set forth in Section 9.6(a).

          “Equipment Threshold Amount” shall have the meaning set forth in Section 9.6(a).

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

          “Escrow Agent” shall mean U.S. Bank National Association in Atlanta, Georgia.

          “Escrow Agreement” shall mean the Escrow Agreement in the form of EXHIBIT D
attached hereto among Escrow Agent, Buyer and the Fisher Parties.

          “Escrow Deposit” shall mean the sum of One Million Six Hundred Thousand Dollars
($1,600,000), to be deposited by Buyer with the Escrow Agent concurrently with the execution of
this Agreement, to be held by Escrow Agent in accordance with the terms and provisions of this
Agreement and the Escrow Agreement.

          “Escrow Reserve” shall have the meaning ascribed to it in Section 2.6.

          “Estoppel Certificates” shall have the meaning set forth in Section 2.4(a).

          “Event of Loss” shall mean any loss, taking, condemnation, or destruction of, or
damage to, any of the Purchased Assets or any Station.

          “FCC” shall mean the Federal Communications Commission.

4

 

          “FCC Consent” shall mean action by the FCC granting its written consent to the
assignment of the Licenses to Buyer (or Buyer’s assignee pursuant to Section 11.8).

          “Final Order” shall mean that action shall have been taken by the FCC (including
action duly taken by the FCC’s staff, pursuant to delegated authority) which shall not have been
reversed, stayed, enjoined, set aside, annulled or suspended, with respect to which no timely
request for stay, petition for rehearing, appeal or certiorari or sua sponte action
of the FCC with comparable effect shall be pending and as to which the statutory time for filing
any such petition, appeal, certiorari or for the taking of any such sua sponte
action by the FCC shall have expired or otherwise terminate.

          “Financial Statements” shall mean the unaudited financial statements of Seller
relating to the Stations described in Section 4.11(a).

          “Financing Leases” shall mean any lease which is properly characterized as a
capitalized lease obligation in accordance with GAAP.

          “Fisher Parties” shall mean Seller and Parent.

          “Fisher Parties’ Closing Certificate” shall mean a certificate of the Fisher Parties,
in the form of EXHIBIT H attached hereto.

          “Fisher Parties Opinions of Counsel” shall mean legal opinions of outside counsel and
FCC outside counsel to the Fisher Parties addressed to Buyer in the form of EXHIBITS I-1
and I-2 attached hereto.

          “GAAP” shall mean generally accepted accounting principles set forth in opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession, in each case as the same are applicable to the circumstances as of the date
of determination.

          “Governmental Body” shall mean any foreign, federal, state, local or other
governmental authority or regulatory body.

          “Great Falls Closing” means the consummation, in accordance with the terms of this
Agreement, of the purchase and sale of the Purchased Assets that are used or held for use with
respect to the Great Falls Stations.

          “Great Falls Stations” shall mean the following Stations of Seller located in Great
Falls, Montana: KXGF(AM), KQDI-FM, KQDI(AM), KIKF(FM), KINX(FM) and K274BC (“Great Falls
Stations”).

          “Great Falls Waiver” shall have the meaning set forth in Section 3.6.

          “Incentive Program” means any agreement, obligation, commitment or program of Seller
in the nature of a rebate or an incentive, whether for Seller’s employees, third parties or

5

 

otherwise, including without limitation, any incentives in the nature of a cruise, travel
voucher, merchandise or other goods and services.

          “Indemnitee” shall have the meaning set forth in Section 9.3(a).

          “Indemnitor” shall have the meaning set forth in Section 9.3(a).

          “Individual Tradeout Credit” shall have the meaning set forth in Section 2.5(d).

          “Intangible Property” shall mean: (a) all patents, trademarks, service marks,
copyrights (whether or not registered) and registrations and applications therefor, trade names,
trade secrets, confidential know-how, designs, inventions, software which is necessary for the
operation of the Stations in their respective markets (which shall include by way of example and
not in limitation, traffic and billing software and data owned or primarily used by any Station,
but specifically excluding accounting and human resources software and data used or licensed by the
Fisher Parties prior to the Closing Date through Parent), formulae, jingles, slogans, logos and
similar proprietary information owned or used by, or in any way relating to, any Station, (b) all
of the rights of Seller in and to the call letters for each Station and any related Internet domain
name, and (c) all goodwill associated therewith, a complete list of which (consisting of the items
described in (a), (b) and (c) above) is set forth on SCHEDULE 1.3.

          “Intangible Property Assignment” shall mean an instrument, in the form of EXHIBIT
J-1 attached hereto, by which interests in and to all of the Intangible Property are to be
conveyed to Buyer.

          “Interim Financial Statements” shall mean the unaudited financial statements of Seller
relating to the Stations described in Section 4.11(b).

          “Knowledge” with respect to Seller shall have the following meaning: the Fisher
Parties will be deemed to have “Knowledge” of a particular fact or other matter if the President or
Chief Financial Officer of Fisher Communications Inc., the President, Controller or Chief Engineer
of Seller, or the Chief Engineer, Business Manager, or General Manager of any Station has actual
knowledge of such fact or other matter, or if any of the foregoing individuals could reasonably be
expected to discover or otherwise become aware of such fact or other matter in the course of making
a reasonable inquiry into such areas of the Business that are under such individual’s general area
of responsibility.

          “Lease Assignment” shall mean an instrument in the form of EXHIBIT F attached
hereto, by which Seller shall assign to Buyer the Leases.

          “Leases” shall mean those leases of real and personal property related to any Station
as listed on SCHEDULE 1.5.

          “License Assignment” shall mean an instrument in the form of EXHIBIT G
attached hereto, by which Seller shall assign to Buyer the Licenses.

          “Licenses” shall mean all licenses, permits (including but not limited to construction
permits) and authorizations issued by the FCC to Seller for the operation of each

6

 

Station and other material licenses, permits and authorizations issued or granted by any other
Governmental Body, all of which are listed on SCHEDULE 1.6.

          “Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, security
interest, encumbrance, claim, lien, lease (including any capitalized lease) or charge of any kind,
whether voluntarily incurred or arising by operation of law or otherwise, affecting any assets or
property, including any agreement to give or grant any of the foregoing, any conditional sale or
other title retention agreement and the filing of or agreement to give any financing statement with
respect to any assets or property under the Uniform Commercial Code of the States of Montana,
Washington or a comparable law of any jurisdiction.

          “Material Adverse Effect” shall mean a material adverse effect on the business,
operations, or financial condition of the Stations, the Business, the Purchased Assets, or on the
ability of the Fisher Parties to consummate the transactions contemplated hereby, or any event or
condition which would reasonably be expected, with the passage of time, to constitute such a
“material adverse effect,” other than changes generally applicable to the economy of the United
States or the radio broadcasting industry in general.

          “Material Leases” and “Material Contracts” shall mean those Leases listed on
SCHEDULE 1.5 and marked with an asterisk, and those Contracts listed on SCHEDULE
1.2 and marked with an asterisk.

          “Miscellaneous Assets” shall mean all tangible and intangible assets used, held for
use or useable in the operation of any Station and not otherwise specifically referred to in this
Agreement, including any warranties relating to any of the Purchased Assets, excepting therefrom
only the Retained Assets.

          “Motor Vehicle Title Certificates” shall mean the official evidences of title to the
Motor Vehicles.

          “Motor Vehicles” shall mean all motor vehicles owned by Seller used in the operation
of the Business, including, without limitation, those listed on SCHEDULE 1.7.

          “Non-Compete/Non-Solicit Agreements” shall mean the Non-Compete Agreements from the
Fisher Parties and certain affiliated entities for the benefit of Buyer substantially in the form
of EXHIBIT M attached hereto.

          “Notice of Defect” shall have the meaning ascribed to it in Section 6.2(a).

          “Parent” shall mean Fisher Communications Inc., a Washington corporation.

          “Permitted Liens” shall mean: (i) liens for Taxes not yet due and payable, (ii) liens
for inchoate mechanics’ and materialmen’s liens for construction in progress and workmen’s,
repairmen’s, warehousemen’s and carriers’ liens arising in the ordinary course of business for sums
not yet delinquent (provided the Title Companies agree to insure over any such exception raised in
the Title Commitment pertaining to such liens), (iii) easements, rights of way, building and use
restrictions, exceptions, reservations and other non-monetary encumbrances on the Real Property in
each case that appear in the public real property records

7

 

(or that would be disclosed by a survey) and that do not in any material respect adversely
affect, impair or interfere with the use of the property subject thereto for the operation of the
Station, and (iv) liens listed on SCHEDULE 2.1.

          “Person” shall mean any natural person, general or limited partnership, corporation,
limited liability company, firm, association or other legal entity.

          “Phase I Environmental Assessment” shall have the meaning ascribed to it in Section
6.2(d)(I).

          “Phase I Time Period” shall have the meaning ascribed to it in Section 6.2(d)(I).

          “Phase II Inspection” shall have the meaning ascribed to it in Section 6.2(d)(II).

          “Phase II Time Period” shall have the meaning ascribed to it in Section 6.2(d)(II).

          “Plan” shall mean any plan, program or arrangement, whether or not written, that is or
was: (a) an “employee benefit plan” as such term is defined in Section 3(3) of ERISA; (b) an
“employee pension benefit plan” as such term is defined in Section 3(2) of ERISA, including,
without limitation, any such plan that satisfies, or is intended by Seller to satisfy, the
requirements for tax qualification described in Section 401 of the Code; (c) a “multiemployer plan”
as such term is defined in Section 3(37) of ERISA; or (d) an “employee welfare benefit plan” as
such term is defined in Section 3(1) of ERISA; and with respect to (a)-(d), (i) which was or is
established or maintained by Seller, (ii) to which Seller contributed or is obligated to
contribute, fund or provide benefits, or (iii) which provides or promises or provided or promised
benefits to any Person who performs or who has performed services for Seller and because of those
services is or has been (A) a participant therein or (B) entitled to benefits thereunder.

          “Primary Closing” means the consummation, in accordance with the terms of this
Agreement, of the purchase and sale of the Purchased Assets that are used or held for use with
respect to all Stations other than the Great Falls Stations.

          “Primary Stations” means all Stations other than the Great Falls Stations.

          “Program Rights” shall mean all rights presently existing and obtained prior to the
Closing, in accordance with this Agreement, of Seller to broadcast radio programs in the operation
of the Business as part of any Station’s programming and for which Seller is or will be obligated
to compensate the vendor of such Program Rights, including all program barter agreements.

          “Purchased Assets” shall mean the right, title and interest of Seller in and to all
assets owned or used by, or in any way relating to, the operation of any Station, other than the
Retained Assets, including but not limited to, (i) the Contracts, (ii) the Customer Lists, (iii)
the Equipment, (iv) the Intangible Property, (v) the Leases, (vi) the Licenses, (vii) the
Miscellaneous Assets, (viii) the Motor Vehicles, (ix) the Real Property and (x) the Records.

          “Purchased Assets Reports” shall have the meaning set forth in Section 6.2(c).

8

 

          “Purchase Price” shall mean the sum of Thirty Three Million Three Hundred Forty
Thousand Dollars ($33,340,000), as adjusted pursuant to Section 2.5 hereof”); provided,
however, that if a Bifurcated Closing occurs pursuant to Section 2.3(b), the term “Purchase
Price” with respect to the Primary Closing shall mean Twenty Nine Million One Hundred Forty
Thousand Dollars ($29,140,000) as adjusted pursuant to Sections 2.5 and 10.1, and the term
“Purchase Price” with respect to the Great Falls Closing shall mean Four Million Two Hundred
Thousand Dollars ($4,200,000), as adjusted pursuant to Sections 2.5 and 10.1.

          “Real Property” shall mean Seller’s fee simple or leasehold interest in the real
property described on SCHEDULE 1.8, and all buildings, structures, improvements and
fixtures thereon used or held for use in connection with the operation of the Business, together
with all strips and gores, rights of way, easements, privileges and appurtenances pertaining
thereto, including any right, title and interest of Seller in and to any street adjoining any
portion of the Real Property.

          “Receivables” shall mean all notes receivable of Seller immediately prior to the
Closing and all Accounts Receivable.

          “Receivables List” shall have the meaning ascribed to it in Section 2.11(a).

          “Recognized Environmental Condition” shall have the meaning ascribed to it in Section
6.2(d)(I).

          “Records” shall mean files and records, including schematics, technical information
and engineering data, programming information, correspondence, books of account, employment
records, customer files, purchase and sales records and correspondence, advertising records, files
and literature, and FCC logs, files and records, and other written materials, of Seller relating to
any Station.

          “Regulated Substances” shall mean any material or substance which is or may be
hazardous, or which could otherwise pose a risk to health, safety or the Environment or which is
regulated, prohibited or controlled pursuant to or the subject of any Environmental Laws, including
without limitation, any hazardous substances (as defined in 42 U.S.C. § 9601(14)), solid waste (as
defined in 42 U.S.C. § 6903(27)), pollutant or contaminant (as defined in 42 U.S.C. § 9601(33)), or
any other waste, pollutant, hazardous waste (as defined in 42 U.S.C. § 6903(5)), petroleum (as
defined in 42 U.S.C. § 6991(8)), petroleum-based substance, by-product, breakdown product or waste,
oil (as defined in 33 U.S.C. § 2701(23)), special waste, sludge (as defined in 42 U.S.C. §
6903(26A)), or as such terms are otherwise defined under applicable laws of the States of Montana
and Washington; and any constituent of any of the aforementioned substance or waste and
specifically including but is not limited to polychlorinated biphenyls (PCBs), asbestos,
asbestos-containing material, lead-based paints, urea formaldehyde, infectious wastes, radioactive
materials and wastes and petroleum and petroleum products (including, without limitation, crude oil
or any fraction thereof).

          “Remedial Action” shall have the meaning ascribed to it in Section 7.10.

          “Retained Assets” shall mean:

9

 

          (a) All Cash;

          (b) All claims, rights and interests of the Fisher Parties in and to any refunds for Taxes
paid in respect of the Stations or the Business for periods ending on or prior to the Closing Date
(subject to claims of Buyer for proration of property and other Taxes or fees of any nature
whatsoever under this Agreement);

          (c) Any rights, claims or causes of action of the Fisher Parties against third parties
relating to the assets, properties, business or operations of the Business, the Purchased Assets or
the Stations, to the extent they relate to the period prior to the Closing, but excluding warranty
claims with respect to Equipment unless such Equipment shall have been replaced;

          (d) All bonds, letters of credit, intercompany notes and similar items, contracts or policies
of insurance and prepaid insurance with respect to such contracts or policies;

          (e) Each Fisher Party’s corporate seal, corporate minute books, stock record books, corporate
records relating to incorporation and capitalization, financial accounting records (except to the
extent they constitute Records), tax returns and related documents and supporting work papers and
any other records and returns relating to Taxes, assessments and similar governmental levies (other
than real and personal property Taxes, assessments and levies imposed on the Purchased Assets);

          (f) The contracts, agreements or understandings of the Fisher Parties that are listed on
SCHEDULE 1.9;

          (g) Any trade name, trademarks, service marks or logos using or incorporating the phrases
“Fisher” or “Fisher Broadcasting” or any portion of any logo containing such phrases;

          (h) All records and documents relating to Retained Assets or to liabilities other than Assumed
Liabilities and not relating to the Business, the Purchased Assets, the Stations or the Assumed
Liabilities;

          (i) All trusts, trust assets, trust accounts, reserves, insurance policies, or other assets,
including, but not limited to, those relating to any Station Employee Benefit Plan or to funding
the other employee benefit plans, agreements or arrangements sponsored, maintained, contributed to,
or administered by the Fisher Parties or their Affiliates;

          (j) Any rights of, or payment due to, the Fisher Parties under or pursuant to this Agreement
or the other agreements with Buyer contemplated hereby;

          (k) All Receivables;

          (l) The Fisher Parties’ intranet service and related connections;

          (m) All accounting and human resources software and data used or licensed by the Fisher
Parties prior to the Closing Date through Parent (but excluding software which is

10

 

necessary for the operation of the Stations in their respective markets (which by way of
example and not in limitation shall include traffic and billing software and data owned or
primarily used by any Station)); and

          (n) All other tangible and intangible assets not relating to any of the Stations, including,
without limitation, the assets described on SCHEDULE 1.9.

          “Retained Liabilities” shall mean all debts, liabilities and other obligations of
Seller that are not Assumed Liabilities.

          “Schedules” shall mean those schedules referred to in this Agreement (which shall be
listed and organized by Station and shall reference specific sections and subsections to which they
relate) which have been bound in that separate volume executed by or on behalf of the parties, and
delivered concurrently with the execution of this Agreement, which volume is hereby incorporated
herein and made a part hereof.

          “Seller” shall mean Fisher Radio Regional Group Inc., a Washington corporation.

          “Seller Indemnified Parties” shall have the meaning set forth in Section 9.2.

          “Seller Market” shall have the meaning set forth in Section 2.5(d).

          “Seller’s Information” shall have the meaning set forth in Section 11.9(a).

          “Station” or Stations” shall have the meaning set forth in the Recitals to
this Agreement.

          “Station Employee” shall mean an employee of Seller who spends substantially all of
his or her time working for any Station as of the Closing Date.

          “Station Employee Benefit Plans” shall mean any Plan or Benefit Arrangement in which
any current, former or retired employee of Seller participates or has participated.

          “Survey Defect” shall have the meaning set forth in Section 6.2(b).

          “Tax” or “Taxes” means any federal, state, local or foreign income, franchise,
assessments, charges, duties, fees, sales, use, transfer, ad valorem, transfer, employment, social
security, withholding, payroll, FICA, unemployment compensation, disability, excise, personal
property, or real property taxes of any kind whatsoever, together with any interest and any
penalties, additions to tax or additional amounts imposed by any Governmental Body.

          “Threshold Amount” shall have the meaning set forth in Section 9.6(a).

          “Title Commitment” shall have the meaning set forth in Section 6.2(a).

          “Title Companies” shall mean Stewart Title Guaranty Company, First American Title
Insurance Company, Commonwealth Land Title Insurance Company and/or such other title insurance
company acceptable to Buyer.

11

 

          “Title Policies” shall mean the owner’s standard coverage title policies issued
pursuant to the Title Commitment in accordance with Section 6.2(a).

          “Trademark Assignment” shall mean an instrument, in the form of EXHIBIT J-2
attached hereto, by which Seller assign all of their rights, title and interest in the registered
trademarks used in the operation of the Business to Buyer and Buyer assumes the then remaining
rights and obligations of Seller under such registered trademarks.

          “Tradeout Agreement” shall mean any contract, agreement or commitment of Seller, oral
or written, pursuant to which Seller has sold or traded commercial air time of any Station in
consideration for property or services in lieu of or in addition to cash, excluding program barter
agreements.

          “Transferred Employee” shall mean a Station Employee who becomes an employee of Buyer
as contemplated by Section 10.2(b).

          “Transferred Obligations” means: (i) the liabilities of Seller, if any, listed on
SCHEDULE 1.1; and (ii) the obligations of Seller under the Contracts and the Leases arising
from and accruing with respect to the operation of the Business after the Closing Date, except
those Contracts and Leases, if any, relating to the Retained Assets.

          “WARN Act” shall have the meaning set forth in Section 10.3.

          “Warranty Deed” shall mean a special warranty deed in a form acceptable to the Title
Companies pursuant to which Seller shall convey to Buyer at the Closing the Real Property located
in the State of Montana and the State of Washington substantially in the forms of EXHIBIT
N-1 and Exhibit N-2 attached hereto.

     1.2 Singular/Plural; Gender. Where the context so requires or permits, the use of the
singular form includes the plural, and the use of the plural form includes the singular, and the
use of any gender includes any and all genders.

ARTICLE 2

PURCHASE AND SALE AND ASSUMPTION OF LIABILITIES

     2.1 Purchase and Sale. At the Closing on the Closing Date, and upon all of the terms
and subject to all of the conditions of this Agreement, Seller shall sell, assign, convey, transfer
and deliver to Buyer, and Buyer shall purchase all of Seller’s right, title and interest, legal and
equitable, in and to the Purchased Assets free and clear of all Liens other than Permitted Liens.
Notwithstanding any provision of this Agreement to the contrary, (i) Seller shall not transfer,
convey or assign to Buyer, but shall retain, all of its right, title and interest in and to the
Retained Assets, (ii) subject to Section 6.6 hereof, this Agreement shall not constitute an
agreement to assign any license, certificate, approval, authorization, agreement, contract, lease,
easement or other commitment included in the Purchased Assets if an attempted assignment thereof
without the consent of a third party thereto would constitute a breach thereof, and (iii) if a
Bifurcated Closing occurs pursuant to Section 2.3(b), then at each of the Primary Closing and the
Great Falls Closing, as applicable, Seller shall sell, transfer, assign, convey, and deliver to
Buyer, and

12

 

Buyer shall purchase from Seller, the Purchased Assets that are used or held for use in the
operations of, respectively, the Primary Stations and the Great Falls Stations.

     2.2 Payments and Assumption of Liabilities. At the Closing on the Closing Date, Buyer
shall do the following:

          (a) If a Bifurcated Closing does not occur pursuant to Section 2.3(b), then Buyer shall (i)
cause Escrow Agent to wire transfer to Seller in immediately available funds the Escrow Deposit,
plus any interest accrued thereon during the period the Escrow Deposit was held by Escrow Agent,
(ii) pay to Seller, by wire transfer, in immediately available funds an amount equal to the
Purchase Price, as adjusted pursuant to Sections 2.5 and 10.1, less (A) the total amount
paid by Escrow Agent to Seller in accordance with this Section, and (B) the Escrow Reserve
(provided that Buyer in its discretion may make payments out of the Purchase Price directly to
lenders and equipment lessors of Seller in the amounts provided for in such parties’ respective
payoff letters), (iii) pay to the Escrow Agent, by wire transfer in immediately available funds, an
amount equal to the Escrow Reserve, and (iv) assume the Assumed Liabilities pursuant to the
Assumption Agreement.

          (b) If a Bifurcated Closing occurs pursuant to Section 2.3(b), then the following shall occur:

               (i) at the Primary Closing, Buyer shall (i) cause Escrow Agent to wire transfer to Seller in
immediately available funds the Escrow Deposit, plus any interest accrued thereon during the period
the Escrow Deposit was held by Escrow Agent, (ii) pay to Seller, by wire transfer in immediately
available funds, an amount equal to the applicable Purchase Price with respect to the Primary
Closing, as adjusted pursuant to Sections 2.5 and 10.1, less (A) the total amount paid by
Escrow Agent to Seller in accordance with this Section, and (B) the Escrow Reserve (provided that
Buyer in its discretion may make payments out of the Purchase Price directly to lenders and
equipment lessors of Seller in the amounts provided for in such parties’ respective payoff
letters), (iii) pay to the Escrow Agent, by wire transfer in immediately available funds, an amount
equal to the Escrow Reserve, and (iv) assume the Assumed Liabilities pursuant to the Assumption
Agreement; and

               (ii) at the Great Falls Closing, if it occurs, Buyer shall (i) pay to Seller, by wire transfer
in immediately available funds, an amount equal to the applicable Purchase Price with respect to
the Great Falls Closing, as adjusted pursuant to Sections 2.5 and 10.1, and (ii) assume the Assumed
Liabilities pursuant to the Assumption Agreement.

     2.3 Closing Date; Bifurcated Closings.

          (a) Subject to Section 2.3(b), the purchase and sale of the Purchased Assets shall be
consummated in accordance with the terms of this Agreement (the “Closing”) at 10:00 a.m., Atlanta,
Georgia time, on the first business day of the calendar month following the date on which each of
the conditions set forth in Articles 7 and 8 has been satisfied or, if permissible, waived by the
party whose obligation is subject to such condition (disregarding for this purpose any such
conditions to be satisfied by actions to be taken at the Closing), or such other date as may be
agreed upon by the Fisher Parties and Buyer in writing, at the offices of Lord, Bissell &

13

 

Brook, 1900 The Proscenium, 1170 Peachtree Street, N.E., Atlanta, Georgia 30309, or at such
other place as may be designated by counsel to Buyer’s lender and as the parties may mutually agree
to in writing. The Closing shall be deemed effective as of 12:01 a.m. Mountain time on the Closing
Date.

          (b) Notwithstanding anything to the contrary contained herein, Seller and Buyer agree that if
the FCC has not issued the FCC Consent with respect to the Primary Stations by September 1, 2006,
the parties will jointly request that the FCC approve the sale of the Primary Stations to Buyer.
Notwithstanding Section 2.3(a), if the Closing has not occurred on or prior to September 1, 2006,
but the conditions set forth in Articles 7 and 8 are satisfied or, if permissible, waived at the
applicable party’s option, such that the Primary Closing may occur at any time after September 1,
2006 (disregarding for this purpose any such conditions to be satisfied by actions to be taken at
the Primary Closing), then Seller or Buyer upon such satisfaction of all of the conditions set
forth in Articles 7 and 8 (or, if permissible, waived), at its option and upon prior written notice
to Buyer or Seller, as applicable, at least ten (10) days prior to the Primary Closing, may elect
to bifurcate the Closing as follows (the “Bifurcated Closing”): (a) the Primary Closing will occur,
regardless of whether the conditions to the Great Falls Closing have been satisfied; and (b) the
Great Falls Closing will occur only if the Primary Closing has occurred and all other conditions to
the Great Falls Closing have been satisfied. The failure of the Great Falls Closing to occur will
have no effect on the Primary Closing, and the Primary Closing shall not be unwound or otherwise
rescinded as a result of such failure. The actual day on which a Closing occurs, whether it be the
Primary Closing, the Great Falls Closing or both, is the “Closing Date.”

     2.4 Closing Date Deliveries. At the Closing on the Closing Date:

          (a) Seller shall deliver, or cause to be delivered to Buyer, properly executed and dated as of
the Closing Date:

               (i) the Assumption Agreement;

               (ii) the Bill of Sale and Assignment;

               (iii) the Contract Assignment;

               (iv) the Lease Assignment;

               (v) the License Assignment;

               (vi) the Motor Vehicle Title Certificates;

               (vii) Fisher Parties’ Closing Certificate;

               (viii) Fisher Parties’ Opinions of Counsel;

               (ix) the Intangible Property Assignment;

               (x) the Warranty Deeds;

14

 

               (xi) Estoppel Certificates from the lessors under the Material Leases in substantially the
form attached hereto as EXHIBIT L (the “Estoppel Certificates”);

               (xii) Registered Trademark Assignment;

               (xiii) the Non-Compete/Non-Solicit Agreements; and

               (xiv) such other documents as provided in Article 7 hereof or as Buyer shall reasonably
request.

          (b) Buyer shall deliver, or cause to be delivered to Seller, properly executed and dated as of
the Closing Date:

               (i) the Assumption Agreement;

               (ii) Buyer’s Closing Certificate;

               (iii) the Contract Assignment;

               (iv) the Lease Assignment;

               (v) the Intangible Property Assignment; and

               (vi) such other documents as provided in Article 8 hereof or as Seller shall reasonably
request.

          (c) Promptly following Closing, Seller shall exercise its best efforts to cause the Title
Companies to issue the Title Policies to Buyer.

          (d) The obligations of the parties under this Section 2.4 shall apply on the actual day on
which a Closing occurs, whether it be the Primary Closing, the Great Falls Closing or both.

     2.5 Proration Adjustments.

          (a) All income and expenses (including prepaid expenses and accrued expenses) of the Stations
as of 11:59 p.m. Mountain time on the day before the Closing Date shall, except as otherwise
expressly provided herein, be adjusted and allocated between Seller and Buyer to reflect the
principle that all income and expenses arising from the operation of the Stations before the
Closing Date shall be for the account of Seller, and all income and expenses arising from the
operation of the Stations from and after the Closing Date shall be for the account of Buyer. Such
prorations shall include, without limitation, all ad valorem, real estate and other property Taxes,
business and license fees, lease payments, payments made pursuant to Assumed Liabilities, rents,
wages and salaries of Station Employees, workers’ compensation premiums, utility expenses, water
and sewer use charges, unbilled time sales agreements, prepaid fees and expenses to the extent
Buyer will receive a benefit thereof, and all other expenses attributable to the ownership and
operation of the Station.

15

 

          (b) The prorations shall not include: (i) accruals for vacation and sick leave of Transferred
Employees, (ii) Taxes arising by reason of the transfer of the Purchased Assets as contemplated
hereby, which shall be paid as set forth in Section 2.8 hereof and (iii) Taxes based on income of
Seller. The consideration hereunder for the Purchased Assets includes consideration for the
Contracts relating to programming and for barter receivables and Program Rights arising in
connection with Tradeout Agreements and that no further payment to Seller or proration shall be due
in respect thereof. Notwithstanding the foregoing, Seller shall be responsible for any cash
payments due on or before the Closing Date under the Contracts for programming, and Buyer shall be
responsible for any such payments after the Closing Date (including reimbursement to Seller on a
pro rata basis for any prepayments made by Seller of the amounts due in respect of the month in
which the Closing occurs and reimbursement to Buyer for any deferred payments which under normal
industry practices would have been paid prior to the Closing Date by Seller).

          (c) Any and all rebates and other incentives (including, without limitation, those payable in
connection with any Incentive Programs) that, under any Contracts in effect on the Closing Date,
may have been paid prior to or be payable after such date to any advertiser or other user of a
Station’s facilities or any other third party, based in part on business, advertising or services
prior to the Closing Date, shall be borne by Seller and Buyer ratably in proportion to revenues
received or volume of business done by each during the applicable period, as determined in
accordance with GAAP. Any and all agency commissions which are subject to adjustment after the
Closing Date based on revenue, volume of business done or services rendered in part before the
Closing Date and in part on or after the Closing Date shall be borne by Seller and Buyer ratably in
proportion to the revenue, volume of business done or services rendered, as the case may be, by
each during the applicable period, as determined in accordance with GAAP.

          (d) Buyer shall receive a credit against the Purchase Price equal to the greater of (i) the
sum of all of the Individual Tradeout Credits or (ii) the Consolidated Tradeout Credit. For
purposes of this Section 2.5(d), an “Individual Tradeout Credit” shall mean the extent any
liabilities under Tradeout Agreements for a particular Seller Market on the Closing Date exceed by
more than $50,000 the value of any assets from Tradeout Agreements for a particular Seller Market
as of the Closing Date. For purposes of this Section 2.5(d), a “Consolidated Tradeout Credit”
shall mean the extent any liabilities under Tradeout Agreements on an aggregate basis for all
Stations on the Closing Date exceed by more than $175,000 the value of any assets from Tradeout
Agreements on an aggregate basis for all Stations as of the Closing Date. For purposes of this
Section 2.5(d), a “Seller Market” shall mean each of the following markets of Seller: Butte,
Montana; Missoula, Montana; Wenatchee, Washington; Billings, Montana; and Great Falls, Montana.
For purposes of this Section 2.5(d) only, radio broadcast station KAAK(FM) shall be deemed one of
the Great Falls Stations and included in the Great Falls, Montana “Seller Market.” In addition, if
the Primary Closing occurs, the assets and liabilities under Tradeout Agreements with respect to
radio broadcast station KAAK(FM) shall be applicable to the determination of the Consolidated
Tradeout Credit as it relates to the Primary Closing, as set forth above.

16

 

          (e) To the extent not inconsistent with the express provisions of this Agreement, the
allocations made pursuant to this Section 2.5 shall be made in accordance with GAAP.

          (f) If not otherwise provided for pursuant to this Section 2.5, net settlement of the
adjustments contemplated under this Section 2.5 shall be made at the Closing to the extent
feasible. For items not readily subject to ascertainment at the Closing, the following procedures
shall apply. Buyer shall prepare and deliver to Seller within ninety (90) days following the
Closing Date, or such later date as shall be mutually agreed to by Seller and Buyer, an itemized
list (the “Adjustment List”) of all sums to be credited to or charged against the account of Buyer,
and such Adjustment List shall be in reasonable detail. Such list shall show the net amount
credited to or charged against the account of Buyer (the “Adjustment Amount”). If the Adjustment
Amount is a credit to the account of Buyer, Seller shall pay by wire transfer such amount to Buyer
of the undisputed portion of the Adjustment Amount within thirty (30) days following delivery of
the Adjustment List. If the Adjustment Amount is a charge to the account of Buyer, Buyer shall pay
by wire transfer such amount to Seller of the undisputed portion of the Adjustment Amount within
thirty (30) days following delivery of the Adjustment List. Notwithstanding the foregoing, the
parties acknowledge and agree that certain prorations (i.e., rebates and volume discounts) may not
be known by the parties at the Closing or within the time period for the delivery of the Adjustment
List and that the parties shall cooperate to make such adjustments in a timely manner when they
become aware of such prorations.

          (g) Not later than thirty (30) days following the delivery of the Adjustment List, Seller may
furnish Buyer with written notification of any dispute concerning any items shown thereon or
omitted therefrom together with a detailed explanation in support of Seller’s position in respect
thereof. Buyer and Seller shall consult to resolve any such dispute for a period of thirty (30)
days following the notification thereof. In the event of any such dispute, that portion of the
Adjustment Amount that is not in dispute shall be paid to the party entitled to receive the same by
wire transfer on the day for payment provided in Section 2.5(f). If such thirty (30) day
consultation period expires and the dispute has not been resolved, the matter shall be referred to
an independent public accounting firm mutually agreed upon by Seller and Buyer (the “Accountants”),
which shall resolve the dispute and shall render its decision (together with a brief explanation in
reasonable detail of the basis therefor) to Buyer and Seller not later than thirty (30) days
following submission of the dispute to it; provided, however, if Buyer and Seller
are unable to mutually agree upon an independent public accounting firm, then Buyer and Seller
shall each choose an independent public accounting firm and those firms shall appoint a third
independent public accounting firm to act as the Accountants. The disputed portion of the
Adjustment Amount shall be paid by wire transfer by the party required to pay the same within five
(5) business days after the delivery of a copy of such decision to Seller and Buyer. The fees and
expenses of the Accountants shall be shared equally by Seller and Buyer.

          (h) Except as otherwise provided in the last sentence of Section 2.5(f) regarding certain
prorations, the Adjustment List (to the extent not disputed within the specified period by Seller),
any mutually agreed written settlement of any such dispute concerning the Adjustment List and any
determination of disputed items by the Accountants shall be final, conclusive and binding on the
parties hereto absent manifest error.

17

 

          (i) If a Bifurcated Closing occurs pursuant to Section 2.3(b), then the prorations and other
adjustments required by this Section 2.5 shall be made as of each Closing Date with respect only to
those Purchased Assets that are the subject of such Closing.

     2.6 Escrow Reserve. Subject to the terms and conditions of the Escrow Agreement, One
Million Six Hundred Thousand Dollars ($1,600,000) of the Purchase Price (the “Escrow Reserve”)
shall be retained by the Escrow Agent in order to secure the indemnification obligations of Seller
pursuant to Article 9. On the first business day nine (9) months following the Closing Date (or
the date of the Primary Closing, if applicable), the Escrow Agent shall release to Seller on behalf
of Buyer the balance of the Escrow Reserve that exceeds the sum of $800,000 plus the amounts of any
pending indemnification Claims by Buyer pursuant to Article 9. On the first business day eighteen
(18) months following the Closing Date (or the date of the Primary Closing, if applicable), the
Escrow Agent shall release to Seller on behalf of Buyer the balance of the Escrow Reserve that
exceeds the amount of any pending indemnification Claims by Buyer pursuant to Article 9.

     2.7 Non-Assumption of Liabilities. Except with respect to its assumption of the
Assumed Liabilities, Buyer shall not assume, or in any way become liable for, any liabilities or
obligations of Seller of any kind or nature, whether accrued, absolute, contingent or otherwise, or
whether due or to become due, or otherwise, whether known or unknown, arising out of events,
transactions or facts which shall have occurred, arisen or existed on or prior to the Closing Date,
which liabilities and obligations, if ever in existence, shall continue to be liabilities and
obligations of Seller. Specifically, but without limiting the generality of the foregoing, Buyer
shall not assume or be liable for the following debts, liabilities and obligations except to the
extent that they are Assumed Liabilities:

          (a) Debts, obligations or liabilities which arise or exist in violation of any of the
representations, warranties, covenants or agreements of Seller contained in this Agreement or in
any statement or certificate delivered to Buyer by or on behalf of Seller on or before the Closing
Date pursuant to this Agreement or in connection with the transactions contemplated hereby;

          (b) Debts, obligations or liabilities of any kind or nature, whether absolute, accrued,
contingent or otherwise, required by this Agreement to be disclosed to Buyer, if not so disclosed
in writing and specifically assumed in writing by Buyer;

          (c) Contingent liabilities of Seller of any kind arising or existing on or prior to the
Closing Date, including, but not limited to, claims, proceedings or causes of action which are
currently or hereafter become, the subject of claims, assertions, litigation or arbitration;

          (d) Debts, obligations or liabilities of Seller, whether absolute, accrued, contingent or
otherwise, for any other Taxes (other than sales taxes), including without limitation any such
Taxes arising from, based upon or related to the sale, transfer or delivery of the Purchased Assets
pursuant to this Agreement;

          (e) Debts, obligations or liabilities under any Station Employee Benefit Plan, policies,
handbooks, customs or practices, employment agreements whether express or implied,

18

 

applicable to any of the Station Employees at any time prior to and including the Closing
Date, including any severance or other liability arising out of the termination of any employee’s
employment;

          (f) Debts, obligations or liabilities arising out of claims alleging damage to the environment
or similar claims with respect to the operation of any Station, or the ownership or lease by Seller
of real property, in each case on or before the Closing Date;

          (g) Any liability or obligation of Seller arising out of any wrongful or unlawful violation or
infringement of any proprietary rights of any Person occurring on or prior to the Closing Date;

          (h) Any liabilities or obligations in respect of the borrowing of money or issuance of any
note, bond, indenture, loan, credit agreement or other evidence of indebtedness or direct or
indirect guaranty or assumption of indebtedness, liabilities or obligations of others, whether or
not disclosed in this Agreement or otherwise of Seller, including, without limitation, any
intercompany obligations or liabilities, if any;

          (i) Debts, obligations or liabilities of Seller arising out of any claim, action, suit or
proceeding pending as of the Closing Date or arising out of or relating to matters or events
occurring on or prior to the Closing Date (whether or not such claim is then asserted), including,
without limitation, any claims for personal injury (including worker’s compensation or otherwise)
or property damage;

          (j) Any liabilities or obligations arising out of or relating to the Retained Assets;

          (k) Any liability, claim or obligation, contingent or otherwise, arising out of the business
or operation of any Station or any Purchased Asset prior to the Closing Date;

          (l) Any liability or obligation under any contract, agreement, license or lease that is not an
Assumed Lease or an Assumed Contract or relating to a breach prior to the Closing Date of any
Assumed Lease or Assumed Contract; and

          (m) Any liability, obligation, contract, agreement, lease or license of Seller that relates in
any way to any of its properties, assets or business, other than the Stations.

     2.8 Taxes. All Taxes applicable to, imposed upon or arising out of the transfer to
Buyer of the Purchased Assets as contemplated by this Agreement shall be paid by Seller, except
sales taxes, which shall be paid by Buyer and collected by Seller.

     2.9 Risk of Loss. Subject to Sections 7.5 and 10.1 hereof, the risk of all Events of
Loss prior to the Closing shall be upon Seller and the risk of all Events of Loss at or subsequent
to the Closing shall be upon Buyer.

     2.10 Allocation of Purchase Price. The Purchase Price shall be allocated in
accordance with SCHEDULE 2.10. Following the Closing, the parties shall make consistent
use of the allocation, fair market value and useful lives specified in SCHEDULE 2.10 for
all Tax purposes

19

 

and in all filings, declarations and reports with the IRS in respect thereof, including the
reports to be filed under Section 1060 of the Code. Buyer shall prepare and deliver IRS Form 8594
to Seller within ninety (90) days after the Closing Date to be filed with the IRS.

     2.11 Accounts Receivable.

          (a) For purposes of Buyer’s obligation to collect the Accounts Receivable as set forth in this
Section 2.11, for all Accounts Receivable, Buyer and Seller shall cooperate to create and deliver
to Buyer within five (5) days after the Closing Date a complete and detailed statement of Accounts
Receivable, showing the name, amount and age of each Account Receivable as of the Closing Date
(“Receivables List”). Buyer shall, in the ordinary course of business, prepare invoices for each
account debtor, which shall include the Accounts Receivable, and shall deliver such invoices to the
applicable account debtors in the ordinary course of business, but not later than thirty (30) days
following the Closing Date. Effective upon the Closing Date, during the Collection Period (as
defined herein), Seller hereby constitutes and appoints Buyer, its successors and assigns, the true
and lawful attorney of Seller with full power of substitution, in the name of Buyer, or the name of
Seller, on behalf of and for the benefit of Seller, to collect the Accounts Receivable, to endorse,
without recourse, checks, notes and other instruments in the name of Seller and to do all such
further acts and things in relation thereto as is contemplated by this Section 2.11. Seller agrees
that the foregoing powers are coupled with an interest. For the avoidance of doubt, the parties
acknowledge and agree that any invoices prepared and delivered by Buyer to account debtors in
accordance with this Section 2.11 shall be for a normal billing cycle as implemented by Buyer and
there will not be a special invoice or demand letters sent to account debtors based upon the
Closing Date and outside of such normal billing cycle.

          (b) Buyer will collect the Accounts Receivable in the same manner and with the same diligence
that Buyer uses to collect its own accounts receivable for a period of one hundred twenty (120)
days from the date of delivery of the Receivables List to Buyer (the “Collection Period”). Within
fifteen (15) days after the end of each full calendar month in the Collection Period (i) Buyer
shall furnish Seller with a list of the amounts collected during such period with respect to the
Accounts Receivable and an Accounts Receivable aging report and (ii) Buyer shall pay over to Seller
(or its designee) by wire transfer of immediately available funds such collected amounts in full.

          (c) Any payment received by Buyer during the Collection Period from any account debtor owing
on any of the Accounts Receivable shall first be applied in reduction of the oldest outstanding
balance due from such account debtor, except to the extent the account debtor shall otherwise
expressly provide. Notwithstanding the foregoing, if an account debtor disputes its obligations
for an Account Receivable, Buyer shall promptly return all records relating to the disputed account
to Seller, and Buyer shall have no further obligation with respect to the collection thereof. So
long as Buyer is in compliance with this Section 2.11, and except for disputed accounts returned to
Seller, neither Seller nor its agents or successors or assigns shall make any direct solicitation
of the account debtors for collection purposes or other direct attempts to collect from account
debtors during such Collection Period except as may be agreed to by Buyer. Upon the expiration of
the Collection Period, Buyer shall pay to Seller (or its designee) by wire transfer of immediately
available funds all remaining amounts collected with

20

 

respect to Accounts Receivable and furnish Seller with a (i) a statement of accounts for each
Account Receivable which then remains uncollected prepared substantially in the manner in which
Seller has heretofore prepared such report for the Stations, (ii) copies of all open Accounts
Receivable invoices, (iii) an Accounts Receivable aging report and (iv) all files to the extent
concerning the collection or attempts to collect such accounts hereunder; thereafter Buyer shall
have no further obligations hereunder with respect to such Accounts Receivable. Any amounts
received by Buyer after the Collection Period expires which can be identified as a payment of the
Accounts Receivable will be promptly paid over to Seller. Buyer shall not be obligated to use any
extraordinary efforts (including, demand letters), or such other action other than those it would
customarily undertake in the ordinary course of business, to collect any of the Accounts Receivable
or to refer any of such Accounts Receivable to a collection agency or to an attorney for
collection, and Buyer shall not make any such referral or compromise, settle or adjust the amount
of any Account Receivable, except with the approval of Seller. Buyer shall incur no liability to
Seller for any uncollected amount. The payment by Buyer of collected Accounts Receivable to Seller
hereunder shall in all events be net of commissions due to employees, national sales
representatives and advertising agency sales representatives (except to the extent already paid)
paid by Buyer on behalf of Seller at Buyer’s applicable commission rate, and Buyer shall promptly
pay such commissions to the appropriate party solely to the extent of collections of Accounts
Receivable.

     2.12 Section 1031 Exchanges. Buyer acknowledges that Seller may wish to transfer any
or all of the Purchased Assets in a transaction intending to qualify in whole or in part for
nonrecognition of gain pursuant to Section 1031 of the Code. If Seller so desires, it shall
provide Buyer with a written statement, at least five (5) days prior to Closing, stating Seller’s
intent to qualify the transfer of the Purchased Assets specified in such statement as a
tax-deferred exchange under Section 1031 of the Code. Buyer agrees that at the request of Seller,
and subject to the terms of this Agreement, at the Closing, Buyer shall pay the portion of the
Purchase Price allocable to the Purchased Assets, as specified in the written statement, to any
single “qualified intermediary” (as defined in Treasury Regulation Section 1.1031(k)-1(g)(4))
designated by Seller in lieu of and in complete satisfaction of the portion of the Purchase Price
otherwise payable to Seller. In addition, Buyer agrees that it will cooperate with Seller in
completing any such exchange, and shall execute all such agreements, instructions, instruments, and
other documents as Seller shall reasonably request with respect to such exchange. Nothing in this
Section 2.12 shall be construed to (a) require that the transactions contemplated by this Agreement
be conditioned upon completion of any such exchange, (b) permit Seller to delay the transfer of the
Purchased Assets to Buyer as required by this Agreement, including without limitation any delay of
the FCC Consent or filing of the Assignment Application, (c) require Buyer to make any payment of
any portion of the Purchase Price to any person other than Seller, the Escrow Agent, or a qualified
intermediary designated by Seller in accordance with this Section 2.12, or (d) require that Buyer
incur any additional expense or liability as a result of or otherwise in connection with any such
exchange.

21

 

ARTICLE 3

GOVERNMENTAL APPROVALS AND CONTROL OF STATIONS

     3.1 FCC Consent. Consummation of the transactions contemplated herein and the
performance of the obligations of Seller and Buyer under this Agreement are subject to the
condition that the FCC or its staff shall have given its consent in writing, without any condition
materially adverse to Buyer or Seller, to the assignment of the Licenses to Buyer, other than as
set forth in Section 3.6 hereof.

     3.2 Application For FCC Consent.

          (a) Seller and Buyer agree to proceed expeditiously, in good faith, and with due diligence and
to use their good faith best efforts and to cooperate with each other in seeking the FCC’s approval
of the assignment of the Licenses to Buyer or in the case of the Great Falls Closing, Buyer’s
designee. Within ten (10) days after the date of this Agreement, each party shall prepare its
portion of an application for consent to assign the Licenses (the “Assignment Application”) for
electronic filing by Seller with the FCC, including all information, data, exhibits, resolutions,
statements and other materials necessary and proper in connection with such Assignment Application.
Seller and Buyer further agree expeditiously to prepare and submit amendments to the Assignment
Application whenever such amendments are required by the FCC or its rules. Seller and Buyer will
promptly provide to the other(s) a copy of any pleading, order or other document it receives from
other parties relating to the Assignment Application. Buyer and Seller shall oppose any efforts by
any third parties for action against the Assignment Application, and for reconsideration or
judicial review of the grant by the FCC of the Assignment Application (but nothing in this Article
3 shall limit any party’s right to terminate this Agreement pursuant to Section 11.1 of this
Agreement).

          (b) Except as otherwise provided herein, each party will be solely responsible for the
expenses incurred by it in the preparation, filing and prosecution of its respective portion of the
Assignment Application. All filing fees imposed by the FCC shall be paid one-half (1/2) by Seller
and one-half (1/2) by Buyer.

          (c) Seller and Buyer agree to comply with any condition imposed by the FCC, except that no
such party shall be required to comply with a condition that would have a material adverse effect
upon it unless the condition was imposed as the result of a circumstance which constitutes a breach
by that party of any of its representations, warranties or covenants in this Agreement, other than
as set forth in Section 3.6 hereof.

     3.3 Notice of Application. Seller shall, at its own expense, give the notice of the
filing of the Assignment Application as required by the FCC’s rules.

     3.4 Delay in Approval of Application. Seller or Buyer, not then being in default
under this Agreement, at their option may terminate this Agreement by providing ten (10) days’
prior written notice to the other party, without liability, at any time after one (1) year from the
date hereof, if the FCC has not granted the Assignment Application by that date; provided,
however, if a Final Order is required by Buyer or Seller and the FCC has provided an
initial

22

 

grant of the Assignment Application within such one (1) year period from the date hereof, then
Buyer or Seller, as the case may be, shall have the right to extend the Closing Date through a date
no later than sixty (60) days thereafter. In the event of such termination, each party shall bear
its own expenses, and the Escrow Agent shall return to Buyer the Escrow Deposit (as such amount
remains on such effective date of termination) (including all interest earned thereon) without
foreclosing any other remedies Buyer or the Fisher Parties may choose to pursue.

     3.5 Other Governmental Consents. Promptly following the execution of this Agreement,
Buyer and Seller shall prepare and file with the appropriate governmental authorities any other
requests for approval or waiver, if any, that are required from other governmental authorities in
connection with the Closing, and shall diligently and expeditiously prosecute, and shall cooperate
fully with each other in the prosecution of, such requests for approval or waiver and all
proceedings necessary to secure such approvals and waivers.

     3.6 Great Falls Waiver. The parties acknowledge that Buyer’s affiliates currently own
radio stations in Great Falls, Montana and that the purchase of all of Seller’s Stations in Great
Falls, Montana will cause Buyer to exceed the ownership limits for radio stations in that market as
prescribed by the Communications Laws. Accordingly, Buyer and the Fisher Parties acknowledge that
Buyer will request from the FCC in the Assignment Application a waiver of these ownership limits in
Great Falls, Montana by requesting FCC consent to the use of a voting trust or other means of
establishing independent ownership for certain of the radio stations in Great Falls, Montana such
that Buyer will comply with the radio ownership limits for the Great Falls market at the Closing
(collectively, the “Great Falls Waiver”). Buyer shall expeditiously, in good faith, and with due
diligence exercise its best efforts in seeking the FCC’s approval of the Great Falls Waiver.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE FISHER PARTIES

     The Fisher Parties, jointly and severally, represent, warrant and covenant to Buyer as
follows:

     4.1 Organization. Each of Parent and Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Washington. Except for the
qualification of Seller in Montana and Washington, there is no jurisdiction in which Seller is
required to be qualified or registered to transact business. Each of Parent and Seller has the
power and authority to own, lease and operate its properties and to carry on its business in the
places where such properties are now owned, leased or operated as such business is now conducted.

     4.2 Authorization; Enforceability. The execution, delivery and performance of this
Agreement and all of the documents and instruments required hereby by each Fisher Party and the
consummation by the Fisher Parties of the transactions contemplated hereby and thereby, are within
the corporate power of such Fisher Party and have been duly authorized by all necessary action by
such Fisher Party. This Agreement is, and the other documents and instruments required hereby will
be, when executed and delivered by each Fisher Party, the valid and binding

23

 

obligations of such Fisher Party, enforceable against it in accordance with their respective
terms, subject only to bankruptcy, insolvency, reorganization, moratoriums or similar laws at the
time in effect affecting the enforceability or rights of creditors generally and by general
equitable principles which may limit the right to obtain equitable remedies.

     4.3 Absence of Conflicting Agreements. Except as set forth on SCHEDULE 4.3,
neither the execution, delivery or performance of this Agreement by the Fisher Parties, nor the
consummation of the sale and purchase of the Purchased Assets or any other transaction contemplated
by this Agreement, does or will, after the giving of notice, or the lapse of time or both, or
otherwise:

          (a) conflict with, result in a breach of, or constitute a default under the articles of
incorporation, corporate charter, by-laws, or other organizational or governance documents of
either Fisher Party, or any federal, state or local law, statute, ordinance, rule or regulation, or
any judgment, decree or court or administrative order or process, or any material contract,
agreement, arrangement, commitment or plan to which a Fisher Party is a party or by which a Fisher
Party is bound and which relates to the ownership or operation of any Station or the Purchased
Assets;

          (b) result in the creation of any Lien upon any of the Purchased Assets;

          (c) terminate, amend or modify, or give any party the right to terminate, amend, modify,
abandon or refuse to perform any Contract, Lease or any other material agreement, arrangement,
commitment or plan to which a Fisher Party is a party and which relates to the ownership or
operation of any Station or the Purchased Assets;

          (d) accelerate or modify, or give any party the right to accelerate or modify, the time within
which, or the terms under which, any duties or obligations are to be performed, or any rights or
benefits are to be received, under any Contract, Lease or any other material agreement,
arrangement, commitment or plan to which a Fisher Party is a party and which relates to the
ownership or operation of any Station or the Purchased Assets;

          (e) require the consent, waiver, approval, permit, license, clearance or authorization of, or
any declaration or filing with, any court or Governmental Body other than the FCC Consent; or

          (f) require the consent of any Person under any Contract, Lease or other material agreement,
arrangement or commitment of any nature to which a Fisher Party is a party or the Purchased Assets
are subject or by which a Fisher Party or Purchased Assets are bound.

     4.4 Purchased Assets. Except as set forth on SCHEDULE 4.4, the Purchased
Assets (a) include all of the assets, properties and rights of every type and description, real,
personal and mixed, tangible and intangible, that are necessary for, used or held for use in the
conduct of the business of owning and operating the Stations in the manner in which that business
has been and is now conducted, and (b) constitute all of the assets and rights required by Buyer to
operate the business of each Station. All inventories of supplies, tubes and spare parts necessary
or appropriate for the operation of each Station are at levels consistent with past operations of
such Station.

24

 

     4.5 Title to Purchased Assets; Liens and Encumbrances. Except as set forth on
SCHEDULE 4.5, Seller owns good, transferable and marketable title to or has valid leasehold
interests in all of the Purchased Assets (other than the Real Property as to which the provisions
of Section 4.9 apply) free and clear of any and all Liens except for Permitted Liens.

     4.6 Condition of Equipment. Except as set forth on SCHEDULE 4.6:

          (a) the Equipment currently being used by Seller to operate the Stations is operating in a
condition that is sufficient to conduct the Business as is customary within industry standards for
a small market broadcast radio station;

          (b) the Equipment includes all items of tangible personal property utilized by Seller in
connection with owning and operating each Station;

          (c) the list of Equipment on SCHEDULE 1.4 is a true and correct list of all items of
tangible personal property necessary for or used in the operation of each Station in the manner in
which it has been and is now operated;

          (d) those items of Equipment currently used for transmission and for studio purposes are
operating in conformity with the Communications Laws;

          (e) no Equipment has been removed since December 31, 2005 except for removal of obsolete or
non-operational equipment; and

          (f) EXCEPT AS SET FORTH IN THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 4, THE
EQUIPMENT IS BEING SOLD TO BUYER ON AN “AS IS” BASIS, WITHOUT ANY EXPRESS OR IMPLIED WARRANTIES
(INCLUDING WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND/OR MERCHANTABILITY).

     4.7 Contracts. Except as set forth on SCHEDULE 4.7:

          (a) All of the Contracts constitute legal, valid and binding obligations of the respective
parties thereto, are in full force and effect, and neither Seller nor, to the Knowledge of Seller,
any other party thereto has violated any provision of, or committed or failed to perform any act
which, with notice, lapse of time or both, could constitute a default under the provisions of any
Contract;

          (b) The Contracts described on SCHEDULE 1.2 constitute all of the agreements,
undertakings, commitments or understandings, whether written or oral, relating to the conduct of
the Stations (and including all employment agreements of Station Employees) other than (i) each
contract for the sale of time on the Stations that involves the purchase in the aggregate of less
than $20,000 in advertising time and requires performance over a period of less than six (6)
months, and (ii) each contract which is cancelable by Seller or its assignee without breach or
penalty on not more than thirty (30) days notice and which involves average annual payments or
receipts by the applicable Stations of less than $5,000 in the case of any single contract and
$15,000 in the aggregate for all Stations;

25

 

          (c) Seller has furnished to Buyer true and complete copies of all Contracts, including all
amendments, modifications and supplements thereto, and SCHEDULE 1.2 contains true, accurate
and complete summaries of the provisions of all oral contracts;

          (d) SCHEDULE 1.2 sets forth an accurate and complete list and description of each (i)
Tradeout Agreement not entered into in the ordinary course of Seller’s business and any (ii)
Tradeout Agreement which creates an obligation or liability of Seller of more than $5,000
individually. Assuming a Closing Date of September 1, 2006, Seller has furnished to Buyer true and
complete copies of all Tradeout Agreements listed on SCHEDULE 1.2 that Seller has a
reasonable expectation will not be extinguished and completed in accordance with their terms by
such Closing Date;

          (e) Seller’s right, title and interest in and to each of the Contracts is fully assignable to
Buyer without the consent, approval or waiver of any other Person and the assignment of such
Contracts will give no party thereto the right to terminate such Contract;

          (f) None of the Contracts provides for delayed or deferred payments that Buyer would be
obligated to pay after the Closing Date; and

          (g) Seller is current on all of its payment obligations under the Contracts.

     4.8 Intangible Property. Except as set forth on SCHEDULE 4.8:

          (a) there are no claims, demands or proceedings instituted or, to the Knowledge of Seller,
pending or threatened, by any third party pertaining to or challenging Seller’s right to use any of
the Intangible Property;

          (b) to the Knowledge of Seller, no facts exist that could reasonably be expected to render any
of the Intangible Property invalid or unenforceable;

          (c) there is no Intangible Property owned by a third party which Seller is using in connection
with the operation of the Stations without proper license to do so (which licenses, if any,
constitute part of the Contracts);

          (d) there are no royalty agreements between Seller and any third party relating to any of the
Intangible Property;

          (e) SCHEDULE 1.3 lists and identifies correctly and completely all of the Intangible
Property (i) owned or used by, or in any way relating to, the operation of any Station and (ii)
necessary for or used in the operation of any Station; and

          (f) Seller owns or has the right to use the Intangible Property, all of which Intangible
Property is transferable to Buyer by the sole act of Seller without the consent, approval or waiver
of any other Person and without affecting Buyer’s continuing right to use such Intangible Property
after the Closing.

26

 

     4.9 Real Property. Except as disclosed on SCHEDULE 4.9:

          (a) Seller has good, valid, marketable and insurable (at standard rates) fee simple absolute
interest in the Real Property and Seller has a valid, enforceable and insurable (at standard rates)
Lease for all Real Property which is leased, and such Real Property includes all real property
necessary or appropriate for, held for use or used in the operation of each Station. Attached to
SCHEDULE 4.9 are true and complete copies of (i) all policies of title insurance currently
existing in favor of Seller with respect to the Real Property, (ii) all surveys in the possession
or under control of Seller related to the Real Property and (iii) all agreements or documentation
related to appurtenances or improvements to the Real Property in the possession or under control of
Seller, in each case which have previously been provided to Buyer. Except for Permitted Liens and
the items set forth on SCHEDULE 4.9, there are no Liens, restrictions, encroachments or
encumbrances to title to any portion of the Real Property. No Real Property owned by Seller is
subject to any unrecorded easements, rights, obligations, duties, covenants, conditions,
restrictions, limitations or agreements not of record.

          (b) There is no pending condemnation or similar proceeding affecting the Real Property or any
portion thereof and, to Seller’s Knowledge, no such action is presently contemplated or threatened.

          (c) Seller has not received any notice from any insurance company of any defects or
inadequacies in the Real Property or any part thereof which could adversely affect the insurability
of the Real Property or the premiums for the insurance thereof. Seller has not received any notice
from any insurance company which has issued or refused to issue a policy with respect to any
portion of the Real Property or by any board of fire underwriters (or other body exercising similar
functions) requesting the performance of any repairs, alterations or other work with which full
compliance has not been made.

          (d) To the Knowledge of Seller, there are no parties in possession of any portion of the Real
Property other than Seller, whether as lessees, tenants at will, trespassers or otherwise, and
except as set forth in the Leases listed on SCHEDULE 1.5 and as otherwise listed on
SCHEDULE 4.9. There are no options or rights in any party to purchase or acquire any
ownership interest in the Real Property owned by Seller, including pursuant to any executory
contracts of sale, rights of first refusal or options.

          (e) No zoning, subdivision, building, environmental, health, land-use, fire or other federal,
state or municipal law, ordinance, regulation or restriction is violated by the continued
maintenance, operation, use or occupancy of the Real Property or any tract or portion thereof or
interest therein in its present manner, except for such violations which could not have a Material
Adverse Effect. The current use of the Real Property and all parts thereof as aforesaid does not
violate any restrictive covenants affecting the Real Property. No current use by Seller of the
Real Property or improvement located thereon is dependent on a nonconforming use or other approval
from a governmental authority, the absence of which would materially limit the use of any of the
properties or assets in the operation of the Business.

          (f) There is no law, ordinance, order, regulation or requirement now in existence, including,
without limitation, any Environmental Law which would require any

27

 

expenditure to modify or improve any of the Real Property in order to bring it into compliance
therewith.

          (g) Except as set forth on Schedule 4.9(a), the Real Property has access to and from
completed, dedicated and accepted public roads, either directly or pursuant to an enforceable and
transferable legal right to traverse property or properties owned by third parties, including but
not limited to Governmental Bodies, and there is no pending, or to Seller’s Knowledge threatened,
governmental proceeding which could impair or curtail such access. No improvement or portion
thereof is dependent for its access, operation, or utility on any land, building, or other
improvement not included in the Real Property.

          (h) There are presently in existence water, sewer, gas and/or electrical lines or private
systems on the Real Property which have been completed, installed and paid for and which are
sufficient to service adequately the current operations of each building, facility or tower located
on the Real Property, as the case may be.

          (i) There are no material structural, electrical, mechanical, plumbing, air conditioning,
heating or other defects in the buildings located on the Real Property and the roofs of the
building located on the Real Property are free from material structural defects and leaks and are
in good condition, and adequate to operate such facilities as currently used and the towers,
antennae, fixtures and improvements on the Real Property are in good operating condition and
repair.

          (j) All Environmental Permits and Licenses which are necessary to permit the lawful access,
use and operation of the Equipment, buildings and improvements located on the Real Property for
their present and intended use have been obtained, are in full force and effect, and to Seller’s
Knowledge there is no pending threat of modification or cancellation of any such Environmental
Permits and Licenses. Seller has not received or been informed by a third party of the receipt by
it of any written notice from any governmental authority having jurisdiction over the Real Property
threatening a suspension, revocation, modification or cancellation of any Environmental Permit or
License.

          (k) The conduct of the operations of each Station in the manner in which they are presently
conducted, to Seller’s Knowledge, has not violated and does not violate any law, statute,
ordinance, rule or regulation of any government, governmental body, agency or authority (Federal,
state or local) in any material respect and no current use by Seller of the Equipment, Real
Property or improvements located thereon is dependent on a nonconforming use or other approval from
a governmental authority, the absence of which would materially limit the use of any of the
properties or assets in the operation of the Station’s business.

          (l) To the Knowledge of Seller, all buildings, structures and transmitting facilities of each
Station, including towers, antennas, guy lines, anchors and all other related buildings, structures
and appurtenances, are located entirely within the confines of the Real Property.

28

 

          (m) Seller has not received written notice of any assessments, general or special, which have
been or are in the process of being levied against the Real Property, and to Seller’s Knowledge
there are no contemplated assessments.

     4.10 Leases. Except as set forth on SCHEDULE 4.10:

          (a) All of the Leases (i) constitute legal, valid and binding obligations of Seller and to
Seller’s Knowledge, the other parties thereto, (ii) are in full force and effect, and (iii) neither
Seller nor to Seller’s Knowledge, any other party thereto has violated any provision of, or
committed or failed to perform any act which, with notice, lapse of time or both, would constitute
a default under the provisions of any of the Leases that would allow the other party to terminate
such Lease or bring a claim for damages, except as would not individually or in the aggregate have,
or could reasonably be expected to have, a Material Adverse Effect;

          (b) The Leases constitute all of the agreements, whether written or oral, between Seller and
third parties relating to the operation of each Station and the Purchased Assets and the operation
of the Stations. SCHEDULE 1.5 lists all of the Leases relating to the Purchased Assets and
the operation of the Stations and the Leases have not been cancelled, modified, assigned, extended
or amended except as set forth on SCHEDULE 1.5;

          (c) Seller has furnished true and complete copies of the Leases to Buyer, including any and
all amendments thereto, and SCHEDULE 1.5 contains true, accurate and complete summaries of
the provisions of all oral leases;

          (d) There are no leasing commissions or similar payments due, arising out of, resulting from
or with respect to any Lease which are owed by Seller; nor does any other party thereto have a
claim, lien, charge or credit against Seller or offsets against rent due under the Lease;

          (e) Seller’s right, title and interest in and to each of the Leases is fully assignable to
Buyer without the consent, approval or waiver of any other Person and the assignment of such Leases
will not give any party thereto the right to terminate such Lease or accelerate payments under such
Lease; and

          (f) Each of Seller’s Financing Leases is listed as such on SCHEDULE 1.5 and identified
as a “Financing Lease” on such schedule.

     4.11 Financial Statements and Interim Financial Statements.

          (a) Attached as SCHEDULE 4.11(a) are true and complete copies of the unaudited balance
sheet of Seller relating to the Stations, as at December 31, 2003, December 31, 2004 and December
31, 2005, and the related statements of income for the fiscal years then ended (collectively, the
“Financial Statements”). The Financial Statements (i) were prepared in accordance with the books
of account and other financial records of Seller and the Stations, which are accurate and complete
in all material respects, (ii) fairly and accurately present the assets, liabilities and financial
condition of Seller and the Stations as of the respective dates thereof, and the results of
operation and cash flows for the periods then ended, (iii) have been prepared in accordance with
GAAP applied on a consistent basis with Seller’s past practices, and

29

 

(iv) include all adjustments (consisting only of normally recurring accruals) and Affiliate
transactions that are necessary for a fair presentation of the financial condition and results of
operation of the business of Seller and the Stations as of the dates thereof and for the periods
covered thereby.

          (b) Attached as SCHEDULE 4.11(b) are true and complete copies of the unaudited balance
sheet of Seller relating to the Stations (by market) as at the month ended March 31, 2006, and the
related statement of income (by market) for the period then ended (the “Interim Financial
Statements”). The Interim Financial Statements were (i) prepared in good faith and in accordance
with the books and records of Seller and the Stations which are accurate and complete in all
material respects, (ii) have been prepared in accordance with GAAP applied on a basis consistent
with the Financial Statements, and (iii) present fairly the financial condition of Seller and the
Stations as at each of the dates indicated and the results of its operations and changes in
financial position for each of the periods then ended (and shall include all Affiliate
transactions); subject, however, to year-end adjustments which, in the aggregate,
are not materially adverse.

     4.12 No Changes. Except as set forth on SCHEDULE 4.12, since December 31,
2005, there has not been any:

          (a) transaction by the Fisher Parties relating to any Station except in the ordinary course of
business conducted as of that date;

          (b) material adverse change in the financial condition, liabilities, assets, prospects or
results of operation of any Station;

          (c) any default under any indebtedness of the Fisher Parties, or any event which, with the
lapse of time, giving of notice or both, could constitute such a default;

          (d) amendment or termination of any Contract, Lease or License to which the Fisher Parties is
a party relating to any Station, except in the ordinary course of business;

          (e) increase in compensation paid, payable or to become payable to a Station Employee, except
customary increases not in excess of 5% in connection with annual employee reviews;

          (f) extraordinary losses (whether or not covered by insurance) or waiver by a Fisher Party of
any extraordinary rights of value relating to any Station;

          (g) commitment or liability to any labor organization which represents, or proposes to
represent, employees of any Station;

          (h) lowering of the advertising rates of any Station in a manner not consistent with past
practices or reflective of current market conditions;

          (i) notice from any sponsor or customer as to that sponsor’s or customer’s intention not to
conduct business with any Station, the result of which loss or losses of business,

30

 

individually or in the aggregate, has had, or could reasonably be expected to have, a material
adverse effect on any Station;

          (j) write down of the value of any assets or write off as uncollectible of any Receivable
except in the ordinary course of business, none of which, individually or in the aggregate, has or
might reasonably have a material adverse effect on Seller’s or any Station’s financial condition;

          (k) change in either Fisher Party’s method of accounting;

          (l) other event or condition of any character that has or might reasonably have a Material
Adverse Effect;

          (m) sale, assignment, lease or other transfer or disposition of any of the assets or
properties of any Station except in the ordinary course of business;

          (n) downgrade of, or any agreement or obligation of any Station to downgrade, its broadcast
transmission signal of any Station;

          (o) distribution, transfer, sale, exchange, loan or disposition by Seller to a related or
affiliated Person; or

          (p) agreement by any Fisher Party to do any of the foregoing.

     4.13 Undisclosed Liabilities. Seller has no debt, liability or obligation of any
kind, whether accrued, absolute, contingent or otherwise, including, without limitation, any
liability or obligation on account of Taxes or any governmental charges or penalty, interest or
fines relating to any Station, except: (i) those liabilities reflected in the Financial Statements
and Interim Financial Statements; (ii) liabilities disclosed on SCHEDULE 4.13; (iii)
liabilities incurred in the ordinary course of business (other than contingent liabilities) since
December 31, 2005, which do not exceed $25,000 in the aggregate; and (iv) liabilities incurred in
connection with the transactions provided for in this Agreement.

     4.14 No Litigation; Labor Disputes; Compliance with Laws. Except as set forth on
SCHEDULE 4.14:

          (a) There is no claim, decree, judgment, order, litigation at law or in equity, arbitration
proceeding or proceeding before or by any Governmental Body pending or, to the Knowledge of Seller,
threatened, to which any Fisher Party is a party or to which the Purchased Assets are subject, that
would have a Material Adverse Effect, and there is no basis for any such claim, litigation or
proceeding. There is no investigation by any Governmental Body pending or, to the Knowledge of
Seller, threatened, which could have a Material Adverse Effect, nor is there any basis for any such
investigation.

          (b) Seller is not subject to or bound by any labor agreement or collective bargaining
agreement; there is no labor dispute, grievance, controversy, strike or request for union
representation pending or, to the Knowledge of Seller, threatened against Seller relating to or
affecting the business or operations of any Station; and there has been no occurrence of any

31

 

events which could reasonably be expected to give rise to any such labor dispute, grievance,
controversy, strike or request for representation.

          (c) Seller owns and operates, and has owned and operated, its properties and assets, and
carries on and conducts, and has carried on and conducted, the business and affairs of each Station
in compliance in all material respects with all federal, foreign, state and local laws, statutes,
ordinances, rules and regulations, and all court or administrative orders or processes, including,
but not limited to, FCC, Occupational Safety and Health Administration, Equal Employment
Opportunity Commission, National Labor Relations Board, Environmental Protection Agency or state
agencies. Each Station complies in all material respects with all applicable statutes, rules and
regulations pertaining to equal employment opportunity, including, without limitation, those of the
FCC.

     4.15 Taxes. Except as disclosed on SCHEDULE 4.15:

          (a) Seller has filed all federal, state and local tax returns, reports and estimates for all
years and periods (and portions thereof) for which any such returns, reports and estimates were due
with respect to the Stations or the Purchased Assets, and any and all amounts due and payable have
been paid in full except to the extent such amounts have been contested in good faith. All of such
returns, reports and estimates are true and complete in all respects. Seller has withheld all Tax
required to be withheld under applicable law and regulation with respect to the Stations in all
material respects, and such withholdings have either been paid to the proper governmental agency or
set aside in accounts for such purpose, or accrued, reserved against and entered upon the books of
Seller, as the case may be; and

          (b) There are, and after the date of this Agreement will be, no Tax deficiencies (including
penalties and interest) of any kind assessed against or relating to the Fisher Parties with respect
to any taxable periods ending on or before, or including, the Closing Date of a character or nature
that could result in Liens or claims on any of the Purchased Assets or on Buyer’s title or use of
the Purchased Assets or that could result in any claim against Buyer.

     4.16 Governmental Authorizations. Seller, as specified on SCHEDULE 1.6, is
the authorized legal holder of all licenses, permits, and authorizations reasonably necessary to
operate the Business of the Stations lawfully and as it is now being conducted, including, without
limitation, the Licenses listed in SCHEDULE 1.6, none of which is subject to any
restrictions or conditions (other than conditions or restrictions stated on the face of the
Licenses or matters affecting the radio broadcasting industry generally) which would limit in any
respect the operation of any Station as now operated. Other than as set forth on SCHEDULE
1.6, no other Licenses are required for Seller to own and operate the Stations in the manner
operated as of the date hereof. All such Licenses are validly existing authorizations for the
operation of the facilities described therein under the Communications Act of 1934, as amended (the
“Communications Act”). Except as stated in SCHEDULE 4.16, Seller is operating each Station
in all respects in accordance with the Licenses, their underlying construction permits, and all
rules and published policies of the FCC (collectively, with the Communications Act, the
“Communications Laws”). Except as stated in SCHEDULE 4.16, there is no action pending or,
to Seller’s Knowledge, threatened, before the FCC or other body to revoke, refuse to renew, suspend
or modify any of the Licenses; and there is no action pending or, to Seller’s Knowledge,

32

 

threatened, before the FCC or other body which may result in the denial of any pending
applications, the issuance of any cease and desist orders, or the imposition of any administrative
sanctions whatsoever with respect to any Station or its operation. The FCC has granted the most
recent applications for renewal of License for all Stations without the imposition of any
conditions other than conditions that are set forth on the face of the Licenses of the Stations or
that are imposed generally by the Communications Laws upon all holders of FCC licenses, permits or
authorizations for facilities of the same class and nature.

     4.17 Pending Applications. SCHEDULE 4.17 sets forth a true and complete list
of all pending applications filed with the FCC by Seller with respect to the Stations.

     4.18 Compliance with FCC Requirements. Except as set forth on SCHEDULE 4.18,
each Station, its physical facilities, electrical and mechanical systems and transmitting and
studio equipment are being and, to Seller’s Knowledge, have been operated in all material respects
in accordance with the specifications of the Licenses, the Communications Laws and with each
document submitted in support of such Licenses. Seller has complied in all material respects with
all requirements of the Communications Laws and the Federal Aviation Administration with respect to
the construction and/or alteration of each Station’s antenna structures that are included in the
Purchased Assets. Where required of Seller, “no hazard” determinations for antenna structures have
been obtained; and where required, each antenna structure has been registered with the FCC. All
material obligations, reports and other filings required by the Communications Laws with respect to
each Station, including, without limitation, all regulatory fee payments and all materials required
to be placed in each Station’s public inspection files, are currently on file and are true and
complete in all material respects; and after the Closing Date, Seller shall furnish to Buyer all
information required by the FCC relating to the operation of each Station prior to the Closing
Date. Seller is aware of no matters that might result in the suspension or revocation of any
Licenses pertaining to any Station. Each Station is operating at its authorized power as specified
in its FCC License or within the legal range thereof as permitted by the Communications Laws.

     4.19 Qualification. Seller is qualified under the Communications Act to assign the
Licenses to Buyer. Except as set forth in Section 3.6, Seller knows of no fact that could cause
the FCC to withhold its consent to the assignment of the Licenses to Buyer other than grant of the
pending applications for renewal of the radio station Licenses.

     4.20 Insurance. Seller has in full force and effect the liability and casualty
insurance and errors and omissions insurance insuring the business, properties and assets of each
Station as described on SCHEDULE 4.20 and such insurance is for such coverage and in such
amounts as is usual and customary for businesses similar to that of Seller. Seller is not in
default with respect to such insurance policies, and Seller has not failed to give any notice or
present any claim under any policies in due and timely fashion. No notice of cancellation,
termination or nonrenewal has been received with respect to any such policy.

     4.21 Brokers. Neither this Agreement nor the sale and purchase of the Purchased
Assets or any other transaction contemplated by this Agreement was induced or procured through any
Person acting on behalf of or representing Seller as broker, finder, investment

33

 

banker, financial advisor or in any similar capacity, other than Kalil & Company, who shall be
paid by Seller.

     4.22 Powers of Attorney. Except as set forth on SCHEDULE 4.22 there are no
Persons holding a power of attorney on behalf of the Fisher Parties relating to the operation of
the Stations or the Purchased Assets.

     4.23 Employees. SCHEDULE 4.23 lists the names and current annual salary rate
or hourly rate of all employees of each Station, which list includes for each such Person the
amounts paid or payable as base salary and describes any other compensation arrangements for
employees for the years 2005 and 2006, including bonuses, severance or other perquisites. Except
as set forth on SCHEDULE 4.23 hereto, there are no collective bargaining agreements,
employment agreements between Seller and their employees or professional service Contracts not
terminable at will relating to any Station or the business and operations thereof. The
consummation of the transactions contemplated hereby will not cause Buyer to incur or suffer any
liability relating to, or obligation to pay, severance, termination or other payments to any Person
or any liability or obligation to pay with respect to any Station Employee Benefit Plan.

     4.24 Employee Benefit Plans. Except as set forth on SCHEDULE 4.24:

          (a) Seller has not at any time maintained or been a party to or made contributions to any
Station Employee Benefit Plan. All Station Employee Benefit Plans maintained by Seller or to which
Seller is obligated to contribute (and all Plans maintained by any other entity which together with
Seller would be considered to be a single employer within the meaning of Section 4001(b) of ERISA
or Section 414 of the Code), are, and have in the past been, in all respects maintained, funded and
administered in compliance with the terms of such Station Employee Benefit Plan, ERISA and the
Code, and other applicable law; no such plan subject to Title IV of ERISA has been terminated; no
proceedings to terminate any such plan have been instituted under Subtitle C of Title IV of ERISA;
no reportable event within the meaning of Section 4043 of Subtitle C of ERISA has occurred for any
such plan maintained by Seller; Seller has not withdrawn from a multi-employer plan (as defined in
Section 4001(a) of ERISA) with respect to the Stations; the consummation of the transactions
contemplated hereby will not result in any withdrawal liability on the part of Seller under a
multi-employer plan; no Plan or Benefit Arrangement established or maintained by Seller or to which
Seller is obligated to contribute has any “accumulated funding deficiency,” as defined in ERISA, or
any other unfunded liability or funding deficit; and Seller has not incurred any liability to the
Pension Benefit Guaranty Corporation with respect to any such plan. Seller has not engaged in any
“prohibited transaction,” as defined in Section 406 of ERISA, or in Section 4975 of the Code with
respect to any Plan.

          (b) Seller has: (a) filed or caused to be filed all returns and reports on the Station
Employee Benefit Plans that are required to be filed and (b) paid or made adequate provision for
all fees, interest, penalties, assessments or deficiencies that have become due pursuant to those
returns or reports or pursuant to any assessment or adjustment that has been made relating to those
returns or reports. All other fees, interest, penalties and assessments that are payable by or for
Seller have been timely reported, fully paid and discharged. There are no unpaid fees, penalties,
interest or assessments due from Seller or from any other Person that are

34

 

or could become a Lien on any Purchased Asset or could otherwise adversely affect any Station
or Purchased Assets. Seller has collected or withheld all amounts that are required to be
collected or withheld by it to discharge its obligations, and all of those amounts have been paid
to the appropriate governmental authority or set aside in appropriate accounts for future payment
when due. Seller has furnished to Buyer true and complete copies of all documents setting forth
the terms and funding of each Plan. The requirements of Section 4980B of the Code (“COBRA”) have
been met with respect to each such Station Employee Benefit Plan that is an “employee welfare
benefit plan” as such term is defined in Section 3(1) of ERISA and, except as required by COBRA,
Seller has no obligation or potential liability for benefits to employees, former employees or
their respective dependents following termination of employment or retirement under any such
employee welfare benefit plan.

          (c) All contributions or premiums for any period ending on or before the Closing Date that are
not yet due have been made to or for each such Station Employee Benefit Plan or accrued in
accordance with the past custom and practice of Seller.

          (d) Neither Seller nor any other entity which together with Seller would be considered to be a
single employer within the meaning of Section 4001(b) of ERISA or Section 414 of the Code has ever
established, maintained, contributed to or otherwise participated in or had an obligation to
establish, maintain, contribute to or otherwise participate in any “multiemployer plan” as such
term is defined in Section 3(37) of ERISA.

     4.25 Environmental Compliance. Except as set forth on SCHEDULE 4.25:

          (a) Seller’s business has complied and is in material compliance with, and the Real Property
and all improvements thereon are in material compliance with, all Environmental Laws.

          (b) Seller is not a party to any litigation or administrative proceeding, nor is any
litigation or administrative proceeding threatened against it relating to any Station, which in
either case: (i) asserts or alleges that Seller violated any Environmental Laws; (ii) asserts or
alleges that Seller is required to clean up, remove or take remedial or other response action due
to the disposal, depositing, discharge, leaking or other release of any Regulated Substances; or
(iii) asserts or alleges that Seller is required to pay all or a portion of the cost of any past,
present or future cleanup, removal or remedial or other response action arising out of or relating
to the disposal, depositing, discharge, leaking or other release of any Regulated Substances.

          (c) With respect to the period during which Seller owned or occupied the Equipment, Real
Property, no Person has caused or permitted Regulated Substances to be generated, treated, stored,
or disposed of, released, recycled on, under or at any Real Property owned, leased, used or
occupied by Seller, which Regulated Substances, if known to be present, would require response
remediation or cleanup, removal or some other remedial action under any Environmental Laws.

          (d) To the Knowledge of Seller, there are not now nor have there been previously, tanks,
disposal areas, landfills, surface impoundments or other facilities on, under or at the Real
Property which contained any Regulated Substances which, if known to be present in

35

 

soils or groundwater or surface water, would require response remediation, removal or such
other remedial action under Environmental Laws.

          (e) There are no conditions existing currently regarding the Purchased Assets that would
subject Seller to damages (including notice of resources damages), penalties, injunctive relief or
response remediation or removal costs under any Environmental Laws or which require or are likely
to require response, remediation or removal or such other remedial action pursuant to Environmental
Laws by Seller.

          (f) With respect to the Real Property, Seller is not subject to any judgment, order or
citation related to or arising out of any Environmental Laws and has not been named or listed as a
potentially responsible party by any governmental body or agency in a matter related to or arising
out of any Environmental Laws.

          (g) The operation of each Station does not exceed the permissible levels of exposure to RF
radiation specified in the FCC’s rules, regulations and policies concerning RF radiation.

          (h) Seller has been duly issued, and currently has and will maintain through the Closing Date,
all Environmental Permits, licenses, certificates and approvals required under any Environmental
Law relating to each Station. A true and complete list of such permits, licenses, certificates and
approvals, all of which are valid and in full force and effect, is set out on SCHEDULE
4.25(h). Except in accordance with such permits, licenses, certificates and approvals or in
compliance with Environmental Laws, there has been no discharge of any Regulated Substances or any
other material regulated by such permits, licenses, certificates or approvals on the Real Property.

          (i) True and complete copies of the environmental assessment reports listed on SCHEDULE
4.25 have been delivered to Buyer which SCHEDULE 4.25 includes all environmental
assessment reports in Seller’s possession with respect to the Stations. Since April 1999, there
are no other environmental assessment reports, environmental studies or other reports relating to
the compliance of the Purchased Assets with Environmental Laws other than as set forth in
SCHEDULE 4.25.

     4.26 Representation as of the Closing Date. Each of the Fisher Parties’
representations and warranties set forth in this Agreement shall be true and correct on and as of
the Closing Date, as though such representations and warranties were made on and as of such time.

     4.27 Records. The Records of the Stations have been fully, properly and accurately
maintained in all material respects, and there are no material inaccuracies or discrepancies of any
kind effected herein, and true and accurate copies thereof have been made available to Buyer.

     4.28 Insolvency. No insolvency proceedings of any kind, including bankruptcy,
receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary,
affecting the Fisher Parties or the Purchased Assets are pending or threatened. The Fisher Parties
have not made an assignment for the benefit of creditors or taken any action with a view to, or
that would constitute a valid basis for, the institution of any such insolvency proceedings.

36

 

     4.29 Related Party Transactions. Except as set forth on SCHEDULE 4.29, and
except for employment Contracts listed on the Schedules hereto and at will employment arrangements,
no partner, director, officer, employee, member or shareholder of any Fisher Party or any associate
or Affiliate thereof, or any relative with a relationship of not more remote than first cousin of
any of the foregoing, is presently, or during the twelve (12) month period ending on the date
hereof has been a party to any transaction related to the Business with any Fisher Party, including
any contract, agreement or arrangement providing for the furnishing of services by, or rental of
real or personal property from, or otherwise requiring payments to, any such partner, director,
officer, employee, member, shareholder, associate or Affiliate.

     4.30 Disclosure. No statement of fact by a Fisher Party contained in this Agreement
and no written statement of fact furnished or to be furnished by the Fisher Parties to Buyer
pursuant to or in connection with this Agreement contains or will contain any untrue statement of a
material fact, or omits or will omit to state a material fact necessary in order to make the
statements herein or therein contained not misleading.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer represents, warrants and covenants to Seller as follows:

     5.1 Organization. Buyer is a limited liability company duly formed, validly existing
and in good standing under the laws of the State of Delaware, and on the Closing Date Buyer will be
duly qualified to do business in Montana and Washington. Buyer has full corporate power to
purchase the Purchased Assets pursuant to this Agreement. Subject to Section 3.6, on the Closing
Date, Buyer will be qualified to be a licensee of the FCC.

     5.2 Authorization; Enforceability. The execution, delivery and performance of this
Agreement and all of the documents and instruments required hereby by Buyer and the consummation by
Buyer of the transactions contemplated hereby and thereby are within the limited liability company
power of Buyer and have been duly authorized by all necessary limited liability company action by
Buyer. This Agreement is, and the other documents and instruments required hereby will be, when
executed and delivered by Buyer, the valid and binding obligations of Buyer, enforceable against
Buyer in accordance with their respective terms, subject only to bankruptcy, insolvency,
reorganization, moratoriums or similar laws at the time in effect affecting the enforceability or
right of creditors generally and by general equitable principles which may limit the right to
obtain equitable remedies.

     5.3 Absence of Conflicting Agreements. Neither the execution, delivery or performance
of this Agreement by Buyer nor the consummation of the sale and purchase of the Purchased Assets or
any other transaction contemplated by this Agreement, does or will, after the giving of notice, or
the lapse of time or otherwise, conflict with, result in a breach of, or constitute a default
under, the certificate of organization or operating agreement of Buyer, or any federal, state or
local law, statute, ordinance, rule or regulation, or any court or administrative order or process,
or any material contract, agreement, arrangement, commitment or plan to which Buyer is a party or
by which Buyer or its assets is bound.

37

 

     5.4 Brokers. Neither this Agreement nor the sale and purchase of the Purchased Assets
or any other transaction contemplated by this Agreement was induced or procured through any Person
acting on behalf of or representing Buyer as broker, finder, investment banker, financial advisor
or in any similar capacity, other than Kalil & Company, who shall be paid by Seller.

     5.5 Buyer’s Qualifications. Except as set forth in Section 3.6, there is no fact that
would, under present law (including the Communications Laws), disqualify Buyer from being the
assignee of the Stations or that would delay FCC approval of the Assignment Application. Should
Buyer become aware of any such fact, it will so inform Seller within five (5) business days of its
awareness of such fact and will use its best efforts to remove any such disqualification. Buyer
will not take any action that Buyer knows, or has reason to believe, would result in such
disqualification.

     5.6 Insolvency. No insolvency proceedings of any character including without
limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors,
voluntary or involuntary, affecting Buyer, or any of Buyer’s assets or properties are now, or on
the Closing Date will be, pending. Buyer has not, and at the Closing Date shall not have made any
assignment for the benefit of creditors, or have taken any action with a view to, or which would
constitute the basis for, the institution of any such insolvency proceedings.

     5.7 Representation as of the Closing Date. Buyer’s representations and warranties set
forth in this Agreement shall be true and correct on and as of the Closing Date, as though such
representations and warranties were made on and as of such time.

     5.8 Disclosure. No statement of fact by Buyer contained in this Agreement and no
written statement of fact furnished or to be furnished by Buyer to Seller pursuant to or in
connection with this Agreement contains or will contain any untrue statement of a material fact or
omits or will omit to state a material fact necessary in order to make the statements herein or
therein contained not misleading.

ARTICLE 6

COVENANTS

     From and after the date of this Agreement and until the Closing:

     6.1 Access. Buyer and its authorized agents, officers and representatives shall have
access, upon reasonable prior notice, to the Business, the Stations and the Purchased Assets to
conduct such examination and investigation of the Business, the Stations and the Purchased Assets
as it reasonably deems necessary (including meeting with Station Employees), provided that such
examinations shall be during the Stations’ normal business hours, and shall not unreasonably
interfere with the Stations’ operations and activities. Buyer shall give the Fisher Parties prompt
written notice if Buyer discovers facts or circumstances that would cause either of the Fisher
Party’s representations or warranties to be materially false or misleading; provided,
however, that failure to give such notice shall neither excuse the failure of such
representations or warranties to be true when and as made, nor constitute a breach of this
Agreement.

38

 

Additionally, Seller shall furnish to Buyer such information and materials concerning the
Stations’ affairs as Buyer may reasonably request, so far as such access, information and materials
pertain to the operation of the Stations and do not impose undue burden or cost upon Seller.

     6.2 Title Insurance; Surveys and Lien Search. Seller shall cooperate fully with Buyer
and Buyer and Seller will use their good faith commercially reasonable efforts so that as soon as
practicable, but in no event later than sixty (60) days after the date hereof with respect to the
items set forth in Section 6.2(a) and 6.2(b), ninety (90) days with respect to the item set forth
in Section 6.2(d), and with respect to the item set forth in Section 6.2(c) within ten (10) days
prior to the Closing, the following shall have been obtained by Buyer and Seller, as provided
herein:

          (a) With respect to the Real Property, Seller shall cause the Title Companies to issue and
deliver to Buyer preliminary reports on title covering a date subsequent to the date hereof, which
preliminary reports shall contain a commitment (individually, a “Title Commitment” and
collectively, the “Title Commitments”) of the Title Companies to issue an owner’s or lessee’s title
insurance policy on ALTA Owners or Lessees Policy (and corresponding mortgagee’s policies) insuring
the fee simple or leasehold interest of Seller in such parcels of Real Property (individually, a
“Title Policy” and collectively, the “Title Policies”) as well as legible copies of all underlying
title documents referenced in such Title Commitment. To the extent available from the Title
Companies, all standard exceptions shall be removed from the Title Policies and the Title Policies
shall contain extended coverage over the general exceptions to title which do not require the
delivery of an ALTA survey and which can be removed by the delivery by Seller of an ALTA statement,
owner’s affidavit or such similar certificate as is customarily required by the Title Company to
issue such coverage. The cost of extended coverage and any other endorsement obtained by Buyer in
connection with the issuance of the Title Policies shall be paid for by Buyer. The Title
Commitments (and Title Policies issued to Buyer) shall not be subject to any Liens other than (i)
Liens that will be released or removed at or prior to Closing, (ii) Permitted Liens or (iii) those
exceptions listed on SCHEDULE 4.9 and Leases listed in SCHEDULE 1.5 in which Seller
is the lessor of a transmission tower; provided, however, if Buyer has an objection
to title it shall notify Seller of such objection or defect (“Notice of Defect”) within ten (10)
days of Buyer’s receipt of the Title Commitment and Survey (as described in Section 6.2(b) hereof)
and Seller shall have until the Closing Date to cure such objection or defect. The Title
Commitments (and Title Policies issued to Buyer) for the leasehold interests of the Seller in the
Real Property shall commit to insure or insure, as appropriate, those Leases listed in SCHEDULE
1.5. Any mortgage, security deed, deed of trust, lien, judgment, or other claim in liquidated
amount which constitutes an exception to the title to the Real Property (whether or not the same is
disclosed by the Title Commitment or listed in the Notice of Defect) shall not in any event be a
“Permitted Lien” hereunder, but such claim shall be paid or satisfied out of the sums payable by
Buyer at Closing, and the proceeds of sale payable to Seller shall be reduced accordingly. At any
time prior to Closing, Buyer shall have the right to notify Seller of any additional title
exception which first appears of record after the effective date of the Title Commitment, is
disclosed by any survey obtained by Buyer, or otherwise becomes known to Buyer, it being understood
and agreed that no such additional title exception shall constitute a Permitted Lien hereunder
unless Buyer shall expressly approve the same or unless such exception was caused by Buyer. Seller
shall use its best efforts to cooperate with Buyer and any applicable landlord to obtain each
leasehold Title Policy.

39

 

          (b) If desired by Buyer, Buyer shall at its own expense obtain ALTA-ASCM Surveys of the Real
Property as of a date subsequent to the date hereof which shall: (i) be prepared by a registered
land surveyor; (ii) be certified to the Title Companies, Buyer’s lender and Buyer; and (iii) show
with respect to such Real Property: (A) the legal description of such parcel of Real Property
(which shall be the same as the Title Policy pertaining thereto); (B) all buildings, structures and
improvements thereon and all restrictions of record and other restrictions that have been
established by an applicable zoning or building code or ordinance and all easements or rights of
way; (C) no encroachments upon such parcel or adjoining parcels by buildings, structures or
improvements; and (D) access to a public street from such parcel, if applicable. Any restrictions,
encroachments (onto the Real Property or from the Real Property onto adjoining property) or other
claims which materially affect the intended use of the Real Property as disclosed on the Survey
shall be a “Survey Defect,” and if Buyer shall have an objection to such Survey, Buyer shall notify
Seller of such objection within ten (10) days of Buyer’s receipt of the Survey and the Title
Commitment and Seller shall have until the Closing Date to cure such objection of Survey Defect.

          (c) With regard to the Purchased Assets other than the Real Property, Buyer shall obtain lien
search reports prepared by an independent, nationally recognized reporting service (the “Purchased
Assets Reports”), reflecting the results of UCC, tax and judgment lien searches conducted at the
applicable state offices of the States of Montana and Washington, and in the County Clerk’s office
of any county in which the Purchased Assets are located, to the effect that: (i) none of the
Purchased Assets is subject to any record Lien for federal, state or local Taxes or assessments,
excepting only a Lien for property Taxes not yet due and payable; and (ii) there are no
then-effective financing statements pertaining to any of the Purchased Assets, except for financing
statements that will be released at or before the Closing.

          (d) (I) Within ninety (90) calendar days from the date hereof (the “Phase I Time Period”),
Buyer shall have the right, at its sole cost and expense, to engage an environmental engineering
firm reasonably acceptable to Seller (the “Consultant”) to conduct a Phase I Environmental
Assessment, as such term is commonly understood (a “Phase I Environment Assessment”) concerning
each Station and the Purchased Assets which shall confirm, in a manner satisfactory to Buyer, that
there are no Recognized Environmental Conditions (as such term is defined in the American Society
of Testing and Materials Standard for Phase I Environmental Assessments) (a “Recognized
Environmental Condition”) on or about each Station and the accuracy of Seller’s representations set
forth in Section 4.25. A copy of the Phase I Environmental Assessment shall be delivered to Seller
within seven (7) days of Buyer’s receipt of the same.

               (II) If the Phase I Environmental Assessment conducted in connection with Section (d)(I)
above details a Recognized Environmental Condition in connection with the Real Property, the
Consultant reasonably recommends further investigatory action with respect to such Recognized
Environmental Condition, and Buyer delivers such assessment and recommendation to Seller within
twenty (20) calendar days from Buyer’s receipt of the Phase I Environmental Assessment, Buyer shall
have the right until fifty-five (55) calendar days from the expiration of the Phase I Time Period
(the “Phase II Time Period”), to have Seller, at its cost and expense, conduct the investigation so
recommended (the “Phase II Inspection”); provided, however, Seller shall have the right to review
and, in its reasonable discretion, approve the work

40

 

plan for any Phase II Inspection proposed. Any damage caused by Seller or its agents, in the
course of any Phase II Inspection shall be promptly repaired by Seller, at its sole cost and
expense.

               (III) If it is determined that there is a Recognized Environmental Condition in connection
with the Real Property and there is a Phase II Inspection, the Consultant shall provide an estimate
to Buyer and Seller of the cost and expense of clean up, removal, remedial, corrective or
responsive action necessary to address such Recognized Environmental Condition (the “Environmental
Work”), which estimate shall set forth in reasonable detail the basis for those estimates;
provided, however, the Environmental Work shall be designed to meet the least stringent standards
or requirements so as not to be a violation under applicable Environmental Laws (taking into
account the zoning of the applicable Real Property and the current uses of resources thereon). If
the estimated costs of Environmental Work are equal to or less than Three Hundred Seventy-Five
Thousand Dollars ($375,000), Seller shall, at its election, either cause such Environmental Work to
be completed at Seller’s sole cost and expense to Buyer’s reasonable satisfaction, in which case
Closing shall be delayed until such Environmental Work has been completed, or the Purchase Price
shall be reduced by the amount of the estimate. If such Environmental Work exceeds Three Hundred
Seventy-Five Thousand Dollars ($375,000), Seller may elect to complete Environmental Work or
terminate this Agreement and return the Escrow Deposit, together with all accrued interest thereon,
to Buyer by providing written notice to Buyer within ten (10) days after receipt of the estimate
for the Environmental Work; provided, however, Buyer may elect, within ten (10) days of receipt of
said termination notice from Seller, to elect to Close the purchase pursuant to the Agreement and
receive a Three Hundred Seventy-Five Thousand Dollar ($375,000) credit against the Purchase Price.
Without limiting the rights of Buyer herein or the obligations of Seller herein, as between Seller
and third parties, Seller hereby reserves any and all rights that it may have against the tenants
of the Owned Real Property with respect thereto, including but not limited to any claim or right of
contribution, indemnity or cost recovery under Comprehensive Environmental Response Compensation
and Liabilities Act of 1980, as amended, and under any other federal or state environmental law,
rule, regulation or statute. Notwithstanding anything to the contrary contained herein, if such
Environmental Work exceeds Three Hundred Seventy-Five Thousand Dollars ($375,000), Buyer may elect
to terminate this Agreement and Buyer shall be entitled to the return of the Escrow Deposit
together with all accrued interest thereon.

               (IV) The parties understand and agree that the procedures outlined in this subsection (d)
shall in no event delay the Closing beyond the date on which the Closing would occur but for such
procedures.

          (e) The expenses incurred relating to Sections 6.2(a) and 6.2(b) shall be paid by Buyer. The
expenses incurred relating to Section 6.2(c) shall be paid by Seller.

     6.3 Notice of Adverse Changes. Pending the Closing Date, Seller shall give Buyer
prompt written notice of the occurrence of any of the following:

          (a) an Event of Loss;

          (b) the commencement of any proceeding or litigation at law or in equity or before the FCC or
any other commission, agency or administrative or regulatory body or

41

 

authority involving any of the Licenses or which could have a Material Adverse Effect, other
than proceedings or litigation of general applicability to the radio broadcasting industry that do
not have a disproportionate impact on any Station;

          (c) any labor grievance, controversy, strike or dispute affecting the business or operation of
any Station;

          (d) any violation by Seller or any Station of any federal, state or local law, statute,
ordinance, rule or regulation which may have a Material Adverse Effect;

          (e) any notice of breach, default, claimed default or termination of any Contract or Lease
(excluding contracts for the sale of advertising time on the Stations);

          (f) Any Station operates at less than ninety percent (90%) of its authorized power level for
more than seventy-two (72) consecutive hours; or

          (g) any other developments that may have a Material Adverse Effect.

     6.4 Operations Pending Closing. Subject to the provisions of Section 6.15 regarding
control of the Stations, pending the Closing, Seller shall:

          (a) operate each Station in the ordinary course of business in accordance with past practices
consistently applied;

          (b) operate each Station in accordance with the Communications Laws;

          (c) maintain the Equipment currently being used by the Seller to operate the Stations in good
operating condition, wear and tear due to ordinary usage excepted, and replace any of the Equipment
which shall be worn out, lost, stolen or destroyed;

          (d) not remove from the Station, sell, assign, lease, transfer, mortgage, pledge, grant any
Lien other than Permitted Liens on or otherwise dispose of, any of the Purchased Assets except for
dispositions in the ordinary course of business in accordance with past practices consistently
applied or unless such Purchased Assets are replaced with an asset of like kind and utility;

          (e) not increase or otherwise change the rate or nature of the compensation (including wages,
salaries and bonuses) or severance paid or payable to any Person, except pursuant to existing
compensation and fringe benefit plans, practices and arrangements which have been disclosed to
Buyer, other than annual performance based increases which shall not exceed 5% per annum, and not
enter into, renew or allow the renewal of, any employment or consulting agreement or other contract
or arrangement with respect to the performance of personal services;

          (f) except with Buyer’s prior written consent, not enter into, or become obligated under, any
agreement or commitment affecting any Station or its operations including any Program Rights
agreement except for commitments for advertising time on any Station at then prevailing rates and
entered into in the ordinary course of the operation of its business, or

42

 

change, amend, terminate or otherwise modify in any material respect any Contract, Lease,
agreement or commitment except for those which terminate or expire by their own terms;
provided, however, that Seller will not enter into any agreements for Program
Rights or any agreements with affiliates of Seller without Buyer’s prior written consent;
provided, further, that Seller will not enter into any agreements for or otherwise
obligate any Station to commence any Incentive Program without Buyer’s prior written consent; and
provided, further, that Seller shall continue to make such expenditures and
commitments as is consistent with past practices of the Stations;

          (g) maintain in full force and effect policies of liability and casualty insurance of the same
type, character and coverage as the policies currently carried with respect to the business,
operations and assets of each Station;

          (h) not enter into any Tradeout Agreement relating to any Station which creates an obligation
or liability of Seller of more than $5,000 individually or which is not in the Seller’s ordinary
course of business, without the prior written consent of Buyer;

          (i) furnish to Buyer true and complete copies of all Tradeout Agreements disclosed to Buyer
pursuant to Section 6.4(h) above;

          (j) not enter into any agreement providing for a delayed or deferred payment that Buyer would
be obligated to pay after the Closing Date;

          (k) stay current on all of its payment obligations under the Contracts and Leases that are
part of the Assumed Liabilities;

          (l) proceed with all reasonable diligence to satisfy its obligations pursuant to Tradeout
Agreements in the ordinary course of each Station’s business;

          (m) utilize the programming of each Station only in the ordinary course of business and not
sell or otherwise dispose of any such programming; and make all payments on programming and
agreements on a current basis;

          (n) make reasonable efforts to endeavor to protect the service areas of the Stations, as
currently authorized by the FCC, from interference from other stations, existing or proposed, to
the extent such interference is prohibited by the Communications Laws, and promptly give Buyer
notice of any such interference;

          (o) not adopt, or commit to adopt, any pension, profit sharing, deferred compensation or
similar plan, program or trust on behalf of personnel of any Station, other than any such plan,
program or trust currently maintained by Seller;

          (p) subject to any legal obligations to bargain in good faith, and except as may otherwise be
required by law, not voluntarily agree to enter into any collective bargaining agreement applicable
to any employees of any Station or recognize any union as the bargaining representative of any such
employees of the Station; and promptly notify Buyer upon acquiring Knowledge of any organizing
activity with respect to any employees of any Station;

43

 

          (q) follow Seller’s usual and customary policy with respect to extending credit for sales of
broadcast time on any Station and with respect to collecting Receivables arising from such
extension of credit;

          (r) make reasonable commercial efforts to promote and advertise each Station and its programs
and make expenditures therefor in accordance with past practices consistently applied;

          (s) make reasonable efforts to endeavor to renew or extend the Licenses with the FCC in an
expeditious manner;

          (t) (i) maintain in effect the Licenses that are required to carry on the business of the
Stations, and (ii) timely file with the FCC all required reports and pay any required annual
regulatory fees for the operation of the Stations;

          (u) not apply to the FCC for any license, construction permit, authorization (including any
special temporary authorization) or modification of license that would materially restrict any
Station’s operation, or make any material change in any Station’s buildings, leasehold improvements
or fixtures;

          (v) not downgrade, or enter into any agreement or otherwise obligate any Station to downgrade,
its broadcast transmission signal of any Station;

          (w) not offer any Station or any Purchased Asset for sale, entertain an offer to purchase the
Purchased Assets or equity interests of Seller, enter into any negotiations with any Person other
than Buyer for the assignment and transfer of the Purchased Assets or the equity interests of
Seller, give an option to any other Person to acquire any of the Purchased Assets or equity
interests of Seller or enter into any agreement or understanding, whether oral or written, that
would prevent the consummation of the transactions contemplated hereby;

          (x) not by any act or omission of Seller or of its owners, stockholders, directors, officers,
employees or agents, surrender, modify adversely, forfeit or fail to seek timely renewal of any
License or cause the FCC to institute any proceedings for revocation, suspension or modification of
any License, or fail to prosecute with due diligence, or participate in the prosecution of, the
Assignment Application, renewal application or any other pending application, including all
amendments thereto as necessitated by the rules of the FCC or as requested by the FCC’s staff;

          (y) not from the time of execution of this Agreement through the ninetieth (90th) day after
the Closing Date, commence a voluntary case under any provision of any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or take any action to assist in or
consent to the entry of an order for relief in an involuntary case under any such law or consent to
the appointment of or taking possession by a receiver, or trustee or other custodian for all or a
substantial part of its property;

          (z) not take or agree to take any action inconsistent with consummation of the Closing as
contemplated by this Agreement; nor take any other actions with respect to the Stations except as
specifically contemplated by this Agreement;

44

 

          (aa) correct within a reasonable period of time (but in any event prior to the Closing) any
Station that is operating below its authorized effective radiated power level as specified in the
FCC Licenses; and

          (bb) not agree to or authorize any of the foregoing.

     6.5 Financial and FCC Reports. Within thirty (30) days after the end of each month
ending after the date of the Interim Financial Statements, Seller will furnish Buyer with a copy of
Seller’s monthly financial reports prepared after the date of the Interim Financial Statement
(including balance sheet, operating statement and weekly pacing reports) for each such month and
the fiscal year to the end of such month; and will furnish all reports filed with the FCC with
respect to each Station after the date hereof within ten (10) days after each such report has been
filed. All of the foregoing financial statements shall comply with the requirements concerning
financial statements set forth in Section 4.11. In addition, upon Buyer’s request, Seller will
furnish Buyer with copies of regular management reports, if any, concerning the operation of each
Station within ten (10) days after such reports are prepared.

     6.6 Consents. Seller will, at its sole expense, use its good faith best efforts to
obtain Estoppel Certificates from lessors under the Leases and all consents required from third
Persons whose consent or approval is required pursuant to any Contract or Lease, prior to the
Closing Date. Sellers shall advise Buyer of any difficulties experienced in obtaining such
consents and of any conditions requested for any of such consents. To the extent that any Contract
or Lease may not be assigned without the consent of any third party, and such consent is not
obtained prior to Closing, this Agreement and any assignment executed pursuant hereto shall not
constitute an assignment thereof, but to the extent permitted by law shall constitute an equitable
assignment and assumption of rights and obligations under the applicable Contract or Lease, with
Sellers making available to Buyer the benefits thereof and Buyer performing the obligations
thereunder on Sellers’ behalf.

     6.7 Cooperation. Buyer and Seller will cooperate in all respects in connection with:
(a) securing any nongovernmental approvals, consents and waivers of third parties referenced in
Section 6.6 or consents of third parties necessary for the transfer of the Purchased Assets from
Seller to Buyer; and (b) giving notices to any governmental authority, or securing the permission,
approval, determination, consent or waiver of any governmental authority required by law in
connection with the transfer of the Purchased Assets from Seller to Buyer.

     6.8 Tax Returns and Payments.

          (a) All Tax returns, estimates and reports required to be filed by Seller prior to the Closing
Date or relating to periods prior to the Closing Date will be timely filed by Seller with the
appropriate governmental agencies.

          (b) All Taxes pertaining to ownership of the Purchased Assets or operation of each Station
prior to the Closing Date will be paid when due and payable.

          (c) Seller shall not permit to exist any Tax deficiencies (including penalties and interest)
of any kind assessed against or relating to Seller with respect to any taxable periods ending on or
before, or including, the Closing Date of a character or nature that could reasonably

45

 

be expected to result in Liens (other than Permitted Liens) or claims on any of the Purchased
Assets or on Buyer’s title or use of the Purchased Assets following the Closing or that would
reasonably be expected to result in any claim against Buyer.

     6.9 Updating of Information; Cure. Between the date of this Agreement and the Closing
Date, Seller will deliver to Buyer: (a) information necessary to update the representations and
warranties and the Schedules hereto and the lists, documents and other information furnished by
Seller as contemplated by this Agreement; and (b) updated copies of documents relating to or
included as a part of such Schedules, in order that all such Schedules, lists, documents and other
information and items shall be complete and accurate in all material respects as of the Closing
Date. Such delivery shall be made promptly as such information becomes available until the Closing
Date, on which date a final delivery shall be made. No such updating of the representations and
warranties or the Schedules shall be deemed to cure any breach of a representation or warranty made
hereunder which was not true and correct in all material respects as of the time made.

     6.10 Conveyance Free and Clear of Liens. Except for Permitted Liens and the Liens
disclosed on SCHEDULE 6.10, at or prior to the Closing, Seller shall obtain the release of
all Liens disclosed in the Schedules hereto and any other Liens on the Purchased Assets, and shall
duly file releases of all such Liens in each governmental agency or office in which any such Lien
or evidence thereof shall have been previously filed, and Seller shall transfer and convey, or
cause to be transferred and conveyed, to Buyer at Closing good and marketable title to all of the
Purchased Assets free and clear of all Liens, except for Permitted Liens and those Liens disclosed
on SCHEDULE 6.10.

     6.11 Financing Leases. At or prior to the Closing, Seller shall obtain the release of
all obligations under any Financing Leases.

     6.12 Access to and Conversion of Data. At or prior to the Closing, the Fisher Parties
shall grant access to Buyer to all data generated by the Fisher Parties’ accounting and human
resources software (which is a Retained Asset) related to the Business and shall cooperate with and
provide assistance to Buyer its authorized agents, officers and representatives in converting its
accounting and human resources data related to the Business to a customarily used electronic medium
and format.

     6.13 Cooperation for Financing. At or prior to the Closing, the Fisher Parties shall
cooperate with and provide reasonable assistance to Buyer and its authorized agents, officers and
representatives in providing information related to the Stations and the Purchased Assets by Buyer
to its lender for financing of the transactions contemplated by this Agreement, including without
limitation, using Seller’s good faith best efforts to obtain and provide to Buyer (a) a landlord’s
consent to encumbrance and waiver agreement from lessors under the Leases, and (b) the legal
descriptions of real property leased under the Leases.

     6.14 Public Announcement. Seller shall publish and broadcast a public notice
concerning the filing of the application for assignment of the Licenses in accordance with the
requirements of Section 73.3580 of the FCC’s Rules. As to any other announcements, neither party
hereto shall issue any press release or public announcement or otherwise divulge the

46

 

existence of this Agreement or the transactions contemplated hereby without prior approval of
the other party hereto, except as and to the extent that such party shall be obligated by law or
regulation or by the rules, regulations or policies of any national securities exchange or
association, in which case the other party shall be so advised and the parties shall use their best
efforts to cause a mutually agreeable release or announcement to be issued.

     6.15 Restrictions on Buyer. This Agreement shall not give Buyer any right to control
the programming or operations of the Stations prior to the Closing Date and Seller shall have
complete control of the programming and operation of the Stations between the date hereof and the
Closing Date and shall operate the Stations in conformity with the requirements of law and this
Agreement.

     6.16 Correction of coordinates. Not later than July 5, 2006, the Fisher Parties will
take all actions at their sole cost and expense necessary to (i) submit such applications or other
documents to the FCC as are necessary to insure that the FCC License and the antenna structure
registration (“ASR”) for station KBLG specify the same geographic coordinates; (ii) submit such
applications or other documents to the FCC as are necessary to insure that the FCC License and ASR
for station KXDR specify the same geographic coordinates; provided, however, if the FCC License for
KXDR is correct and the ASR is incorrect, the Fisher Parties will use best efforts to have the
tower owner/landlord correct the ASR with the FCC; and (iii) update the FCC’s ASR database such
that all antenna structures owned by Seller are properly associated with and registered to Seller.

ARTICLE 7

CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER

     Each and every obligation of Buyer to be performed on the Closing Date shall be subject to the
satisfaction prior to or at the Closing of the following express conditions precedent:

     7.1 Compliance with Agreement. Each Fisher Party shall have performed and complied in
all material respects with all of its obligations under this Agreement which are to be performed or
complied with by it prior to or at the Closing.

     7.2 Proceedings and Instruments Satisfactory. All proceedings, corporate or other,
to be taken by Seller in connection with the performance of this Agreement, and all documents
incident thereto, shall be complete to the reasonable satisfaction of Buyer and Buyer’s counsel and
Seller shall have made available to Buyer for examination the originals or true and correct copies
of all documents which Buyer may reasonably request in connection with the transactions
contemplated by this Agreement.

     7.3 Representations and Warranties. The representations and warranties made by the
Fisher Parties contained herein shall be true and correct in all material respects, as though such
representations and warranties had been made on the Closing Date. For purposes of determining
whether the conditions set forth in this Section 7.3 has been fulfilled, materiality qualifiers in
the Fisher Parties’ representations and warranties in Article 4 shall be disregarded.

47

 

     7.4 No Material Adverse Change. Between the date of this Agreement and the Closing,
there shall have been no Material Adverse Effect.

     7.5 Event of Loss. Between the date of this Agreement and the Closing, neither any
Station nor the Purchased Assets shall have sustained an Event of Loss which individually or in the
aggregate would cost in excess Five Hundred Thousand Dollars ($500,000) to repair. If such an
Event of Loss has occurred, the provisions of Section 10.1 shall be applicable.

     7.6 Deliveries at Closing. Seller shall have delivered or caused to be delivered to
Buyer the documents required pursuant to Section 2.4(a) each properly executed and dated as of the
Closing Date.

     7.7 Other Documents. Seller shall have delivered to Buyer such documents and
certificates of Seller and public officials as shall be reasonably requested by Buyer’s counsel to
establish the existence and good standing of Seller and the due authorization of this Agreement and
the transactions contemplated hereby by Seller.

     7.8 Possession; Instruments of Conveyance and Transfer. Seller shall deliver to Buyer
at the Closing such other documents as shall be effective to vest in Buyer good and marketable
title to the Purchased Assets as contemplated by this Agreement.

     7.9 Approvals and Consent. There shall have been secured such permissions, approvals,
determinations, consents, Estoppel Certificates and waivers, if any, in form and substance
satisfactory to Buyer, as may be required by law, regulatory authorities, the Material Leases or
the Material Contracts.

     7.10 Title Policies; Survey; Lien Search Report and Environmental Report. Buyer shall
have obtained or received the items described in Section 6.2(a), (b), (c) and (d) at the time such
items are required to be obtained or received as described therein. If the reports Buyer receives
pursuant to Section 6.2 do not meet the requirements of Section 6.2, Buyer shall notify Seller
within ten (10) business days after the respective time periods set forth in Section 6.2 or such
condition shall be waived. If Buyer provides such notice, Buyer shall be entitled to terminate
this Agreement and receive the return of the Escrow Deposit, together with all accrued interest, on
the business day following its notice of termination. The environmental reports shall evidence no
material violation of any Environmental Law that Seller has not cured or agreed to cure in a manner
reasonably satisfactory to Buyer or any response, remediation or removal, or some other remedial
action under the Environmental Laws (“Remedial Action”).

     7.11 Absence of Investigations and Proceedings. There shall be no decree, judgment,
order or litigation at law or in equity, no arbitration proceedings, and no proceeding before or by
any Governmental Body pending to which Seller is a party or to which any Station or the Purchased
Assets are subject, including any with respect to condemnation, zoning, use or occupancy, which
could affect in any material respect the ability of Buyer to operate any Station or to use or
acquire the Purchased Assets in the same manner as operated and used by Seller or as currently
proposed to be used by Seller.

Without limiting the generality of the foregoing, no action, proceeding or formal investigation by
any Person or Governmental Body shall be pending with the object of challenging or preventing

48

 

the Closing and no other proceedings shall be pending with such object or to collect damages from
Buyer on account thereof. No action or proceeding shall be pending before the FCC or any other
Governmental Body to revoke, modify in any material respect or refuse to renew any of the Licenses.
No suit, action or other proceeding shall be pending before any court or Governmental Body in
which it is sought to restrain or prohibit, or obtain damages or other relief in connection with,
this Agreement or the consummation of the transactions contemplated hereby.

     7.12 Governmental Consents. The FCC Consent shall have become a Final Order without
any condition or qualification that is materially adverse to Buyer; provided,
however, that if a Bifurcated Closing occurs, (a) this condition shall be satisfied for
purposes of the Primary Closing if the FCC Consent with respect to the Primary Stations has become
such a Final Order, regardless of whether such a Final Order has been granted with respect to the
Great Falls Stations, and (b) this condition shall be satisfied for purposes of the Great Falls
Closing if the FCC Consent with respect to the assignment of the Licenses for the Great Falls
Stations has become such a Final Order. All other authorizations, consents or approvals of any and
all Governmental Bodies necessary in connection with the consummation of the transactions
contemplated by this Agreement shall have been obtained on terms and conditions reasonably
acceptable to Buyer and be in full force and effect.

     7.13 Licenses. Seller shall be the holder of the Licenses and there shall not have
been any modification of any of such Licenses which could have a material adverse effect on any
Station or the conduct of its business operations. Each Station shall be operating in material
compliance with the Communications Laws and no proceeding shall be pending or threatened, the
effect of which could be to revoke, cancel, fail to renew, suspend or modify materially and
adversely any of the Licenses.

     7.14 Absence of Liens; Payoff Letters. On the Closing Date and simultaneously with
the Closing, there shall not be any Liens on the Purchased Assets except for Permitted Liens and
except for the items set forth on SCHEDULE 6.10. Seller shall deliver to Buyer copies of
payoff letters for all existing indebtedness of Seller.

     7.15 Non-Foreign Affidavit. Seller shall have furnished to Buyer an affidavit of
Seller, in a form reasonably satisfactory to Buyer, stating under penalty of perjury Seller’s
United States taxpayer identification number and that Seller is not a foreign Person within the
meaning of Section 1445(b) (2) of the Code.

     7.16 Governmental Consents. The FCC Consent shall have been issued and be in full
force and effect at Closing. All other material authorizations, consents or approvals of any and
all Governmental Bodies necessary in connection with the Closing shall have been obtained and be in
full force and effect.

     If there is a Primary Closing or a Great Falls Closing, then the conditions shall apply to the
Primary Stations or the Great Falls Stations, as applicable, unless the context shall specifically
require otherwise. If any of the conditions set forth in this Article 7 have not been satisfied
(other than the FCC Consent), Buyer may nevertheless waive such condition, but only in writing, and
proceed with the consummation of the transactions contemplated hereby but such waiver shall not
relieve Seller of any of its obligations under Article 9 hereof. Buyer shall not be

49

 

deemed to have waived any failure by Seller to fulfill any of the conditions described in this
Article 7 if Buyer does not have actual knowledge of such failure at the time of Closing.

ARTICLE 8

CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER

     Each and every obligation of Seller to be performed on the Closing Date shall be subject to
the satisfaction prior to or at the Closing of the following express conditions precedent:

     8.1 Compliance with Agreement. Buyer shall have performed and complied in all
material respects with all of its obligations under this Agreement which are to be performed or
complied with by it prior to or at the Closing.

     8.2 Proceedings and Instruments Satisfactory. All proceedings, limited liability
company or other, to be taken by Buyer in connection with the transactions contemplated by this
Agreement, and all documents incident thereto, shall be complete to the reasonable satisfaction of
Seller and Seller’s counsel, and Buyer shall have made available to Seller for examination the
originals or true and correct copies of all documents which Seller may reasonably request in
connection with the transactions contemplated by this Agreement.

     8.3 Representations and Warranties. The representations and warranties made by Buyer
contained herein shall be true and correct in all material respects, as though such representations
and warranties had been made on the Closing Date. For purposes of determining whether the
conditions set forth in this Section 8.3 has been fulfilled, materiality qualifiers in Buyer’s
representations and warranties in Article 5 shall be disregarded.

     8.4 Deliveries at Closing. Buyer shall have delivered or caused to be delivered to
Seller the documents, each properly executed and dated as of the Closing Date required pursuant to
Section 2.4(b). Buyer shall also have made the payments described in Section 2.2.

     8.5 Other Documents. Buyer shall have delivered to Seller such documents and
certificates of officers of Buyer and of public officials as shall be reasonably requested by
Seller’s counsel to establish the existence and good standing of Buyer and the due authorization of
this Agreement and the transactions contemplated hereby by Buyer, including manager or board of
directors resolutions of Buyer.

     8.6 Absence of Investigations and Proceedings. No action, proceeding or formal
investigation by any Person or Governmental Body shall be pending with the object of challenging or
preventing the Closing and no other proceedings shall be pending with such object or to collect
damages from Seller on account thereof.

     8.7 Governmental Consents. The FCC Consent shall have become a Final Order;
provided, however, that if a Bifurcated Closing occurs, (a) this condition shall be
satisfied for purposes of the Primary Closing if the FCC Consent with respect to the Primary
Stations has become such a Final Order, regardless of whether such a Final Order has been granted
with respect to the Great Falls Stations, and (b) this condition shall be satisfied for purposes of
the Great Falls Closing if the FCC Consent with respect to the assignment of the Licenses for the

50

 

Great Falls Stations has become such a Final Order. All other authorizations, consents or
approvals of any and all Governmental Bodies necessary in connection with the consummation of the
transactions contemplated by this Agreement shall have been obtained on terms and conditions
reasonably acceptable to Buyer and be in full force and effect.

     If there is a Primary Closing or a Great Falls Closing, then the conditions shall apply to the
Primary Stations or the Great Falls Stations, as applicable, unless the context shall specifically
require otherwise. If any of the conditions set forth in this Article 8 have not been satisfied
(other than the FCC Consent), Seller may nevertheless waive such condition, but only in writing,
and proceed with the consummation of the transactions contemplated hereby but such waiver shall not
relieve Buyer of any of its obligations under Article 9 hereof. Seller shall not be deemed to have
waived any failure by Buyer to fulfill any of the conditions precedent described in this Article 8
if Seller does not have Knowledge of such failure at the time of Closing.

ARTICLE 9

INDEMNIFICATION

     The parties shall be indemnified as set forth below.

     9.1 Indemnification of Buyer. The Fisher Parties, jointly and severally, covenant and
agree with Buyer that they shall reimburse and indemnify and hold Buyer and its respective
stockholders, general partners, limited partners, members, managers, directors, officers,
employees, agents, affiliates, subsidiaries and assigns (the “Buyer Indemnified Parties”) harmless
from, against and in respect of any and all actions, suits, claims, proceedings, investigations,
audits, demands, assessments, fines, judgments, costs and expenses, (including, without limitation,
reasonable attorneys’ fees) (“Claims”) incurred by any of the Buyer Indemnified Parties that result
from:

          (a) any inaccuracy in or breach of any representations or warranties made by the Fisher
Parties in this Agreement, the Schedules or any other written statement, list, certificate or other
instrument furnished to Buyer by or on behalf of the Fisher Parties pursuant to this Agreement;

          (b) any breach of any covenant or agreement of the Fisher Parties under this Agreement or the
agreements and instruments contemplated herein;

          (c) any liabilities and obligations that are Retained Liabilities;

          (d) the operation or ownership of each Station or the Purchased Assets prior to the Closing
(except for the Assumed Liabilities);

          (e) any Taxes, payments, claims or accruals for salaries, wages, bonuses, vacation, severance,
amounts payable under Station Employee Benefit Plans, or otherwise to employees or agents of
Seller, and other liabilities and obligations of Seller, in each case relating to and incurred with
respect to the periods on or prior to the Closing Date, whether or not due or payable on or prior
to the Closing Date;

51

 

          (f) any claims or litigation matters which relate or are due to the conduct of the Fisher
Parties or any Station on or prior to the Closing Date, including, without limitation, the claims
described in SCHEDULE 4.14 hereto;

          (g) the failure to comply with statutory provisions relating to bulk sales and transfers, if
applicable;

          (h) any fees, expenses or other payments incurred or owed by the Fisher Parties to any brokers
or comparable third parties retained or employed by them or their affiliates in connection with the
transactions contemplated by this Agreement;

          (i) any claims made by a third party alleging facts which, if true, would entitle Buyer
Indemnified Parties to indemnification pursuant to (a) through (h) above;

          (j) any failure of the Fisher Parties to comply with its obligations under this Section 9.1;
or

          (k) any fees or expenses (including without limitation, reasonable attorneys’ fees) incurred
by Buyer in enforcing its rights hereunder.

     For purposes of this Section 9.1, to the extent any facts or circumstances can be deemed a
breach of a representation or warranty by the Fisher Parties, or be deemed a Retained Liability,
such facts and circumstances shall be deemed to be a Retained Liability.

     9.2 Indemnification of Fisher Parties. Buyer covenants and agrees with the Fisher
Parties that it shall reimburse and indemnify and hold the Fisher Parties and their directors,
officers, employees, affiliates, subsidiaries, agents and assigns (the “Seller Indemnified
Parties”) harmless from, against and in respect of any and all Claims incurred by any of Seller
Indemnified Parties that result from:

          (a) any inaccuracy in or breach of any representations or warranties made by Buyer in this
Agreement, the Schedules or any other written statement, list, certificate or other instrument
furnished to the Fisher Parties by or on behalf of Buyer pursuant to this Agreement;

          (b) any breach of any covenant or agreement of Buyer (or any of its assigns) under this
Agreement or the agreements and instruments contemplated herein;

          (c) Assumed Liabilities;

          (d) any fees, expenses or other payments incurred or owed by Buyer to any brokers or
comparable third parties retained or employed by them or their affiliates in connection with the
transactions contemplated by this Agreement;

          (e) any claims made by a third party alleging facts which, if true, would entitle the Seller
Indemnified Parties to indemnification pursuant to (a) through (d) above;

          (f) any failure of Buyer to comply with its obligations under this Section 9.2;

52

 

          (g) any fees or expenses (including without limitation, reasonable attorneys’ fees) incurred
by the Fisher Parties in enforcing its rights hereunder; or

          (h) any claim, liability or obligation incurred or owed by Buyer relating to the operation of
any Station after the Closing Date.

     9.3 Method of Asserting Claims.

          (a) The party seeking indemnification (the “Indemnitee”) will give prompt written notice to
the other party or parties (the “Indemnitor”) of any Claim which it discovers or of which it
receives notice after the Closing and which might give rise to a claim by it against Indemnitor
under Section 9 hereof, stating the nature, basis and (to the extent known) amount thereof;
provided that failure to give prompt notice shall not jeopardize the right of any Indemnitee to
indemnification except to the extent such failure shall have materially prejudiced the ability of
the Indemnitor to defend such Claim. Subject to the Indemnitor’s right to defend in good faith
third party claims as hereinafter provided, the Indemnitor shall satisfy its obligations and this
Article 9 within thirty (30) days after receipt of written notice thereof from the Indemnitee.

          (b) In case of any Claim or suit by a third party or by any Governmental Body, or any legal,
administrative or arbitration proceeding with respect to which Indemnitor may have liability under
the indemnity agreement contained in this Section 9, Indemnitor shall be entitled to participate
therein, and, to the extent desired by it, to assume the defense thereof, and after notice from
Indemnitor to Indemnitee of the election so to assume the defense thereof, Indemnitor will not be
liable to Indemnitee for any legal or other expenses subsequently incurred by Indemnitee in
connection with the defense thereof, other than reasonable costs of investigation, unless
Indemnitor does not actually assume the defense thereof following notice of such election.
Indemnitee and Indemnitor will render to each other such assistance as may reasonably be required
of each other in order to insure proper and adequate defense of any such suit, Claim or proceeding.
If the Indemnitor actually assumes the defense of the Indemnitee, the Indemnitee will not make any
settlement of any Claim which might give rise to liability of Indemnitor under the indemnity
agreements contained in this Section without the written consent of Indemnitor, which consent shall
not be unreasonably withheld, and the Indemnitor shall not agree to make any settlement of any
Claim which would not include the unconditional release of the Indemnitee without the written
consent of Indemnitee, which consent shall not be unreasonably withheld.

          (c) If the Indemnitee shall notify the Indemnitor of any claim or demand pursuant to Section
9.3(a), and if such claim or demand relates to a claim or demand asserted by a third party against
the Indemnitee which the Indemnitor acknowledges is a claim or demand for which it must indemnify
or hold harmless the Indemnitee under Sections 9.1 or 9.2, the Indemnitor shall have the right to
employ counsel acceptable to the Indemnitee to defend any such claim or demand asserted against the
Indemnitee. The Indemnitee shall have the right to participate in the defense of any such claim or
demand. The Indemnitor shall notify the Indemnitee in writing, as promptly as possible (but in any
case before the due date for the answer or response to a claim) after the date of the notice of
claim given by the Indemnitee to the Indemnitor under Section 9.3(a) of its election to defend in
good faith any such third party claim

53

 

or demand. So long as the Indemnitor is defending in good faith any such claim or demand
asserted by a third party against the Indemnitee, the Indemnitee shall not settle or compromise
such claim or demand. The Indemnitee shall make available to the Indemnitor or its agents all
records and other materials in the Indemnitee’s possession reasonably required by it for its use in
contesting any third party claim or demand. Whether or not the Indemnitor elects to defend any
such claim or demand, the Indemnitee shall have no obligations to do so.

     9.4 Payment of Claims. Buyer shall have the right to cause any Claims it may have
against the Fisher Parties, whether under this Agreement or otherwise, to be paid by reduction or
offset of such Claims against any amounts payable by Buyer pursuant to this Agreement. In
addition, to the extent permitted under the Escrow Agreement, Buyer may offset any such Claims
against the Escrow Reserve retained by the Escrow Agent pursuant to Section 2.6 hereof. The rights
contained herein shall not be exclusive, but shall be in addition to any other rights and remedies
available to Buyer. If such Claims by Buyer are pending against the Fisher Parties at such time as
the Escrow Reserve would otherwise be disbursed by the Escrow Agent, then, to the extent permitted
by the Escrow Agreement, the Escrow Agent shall withhold from such disbursement any amount that
would become necessary to satisfy such Claim until such time as such Claim has been resolved.

     9.5 Nature and Survival of Representations. All statements made by or on behalf of
the Fisher Parties herein or in the Schedules, shall be deemed representations and warranties of
the Fisher Parties, regardless of any investigation made by or on behalf of Buyer. The
representations and warranties made by the Fisher Parties, on the one hand, and by Buyer, on the
other hand, under this Agreement shall survive for a period of two (2) years following the Closing,
except that (i) the representations and warranties set forth in Section 4.15 (Taxes) and Section
4.24 (Employee Benefit Plans) shall survive the Closing until ninety (90) days after the expiration
of the applicable statute of limitations, and (ii) the representations and warranties set forth in
Section 4.5 (Title), Section 4.21 (Brokers), Section 4.25 (Environmental Compliance) and Section
5.4 (Brokers) shall survive indefinitely.

     9.6 Limitation on Aggregate Claims.

          (a) No Claims may be asserted by a party pursuant to Sections 9.1(a) or 9.1(i) (as it relates
to 9.1(a)) or 9.2(a) or 9.2(e) (as it relates to 9.2(a)) of this Agreement until the aggregate
amount of all such Claims of such party shall exceed One Hundred Twenty-Five Thousand Dollars
($125,000) (the “Threshold Amount”), at which time the party seeking indemnification shall be
entitled to recover all amounts in excess of the Threshold Amount; provided, however, the foregoing
clause shall not apply to Claims with respect to the representations and warranties set forth in
Section 4.6(d) herein which may be asserted by Indemnitor without regard to whether any Threshold
Amount has been met; provided further, however, (I) no Claims may be asserted by Indemnitor
pursuant to Sections 9.1(a) or 9.1(i) (as it relates to 9.1(a)) of this Agreement with respect to
the representations and warranties set forth in Section 4.6(a) herein (“Equipment Claims”) until
the aggregate amount of all such Equipment Claims of Indemnitor shall exceed Twenty-Five Thousand
Dollars ($25,000) (the “Equipment Threshold Amount”), at which time Indemnitor shall be entitled to
recover all amounts in excess of the Equipment Threshold Amount and (II) any Equipment Claims by
Indemnitor up to

54

 

$25,000 shall reduce on a dollar-for-dollar basis the Threshold Amount, but any amount in
excess of $25,000 paid by the Fisher Parties shall not further reduce the Threshold Amount.

          (b) The parties acknowledge and agree that to the extent any aggregate liabilities under
Tradeout Agreements on the Closing Date exceed the value of any aggregate assets from Tradeout
Agreements as of the Closing Date, the amount of such excess shall reduce on a dollar-for-dollar
basis the Threshold Amount; provided, however, to the extent Buyer is entitled to a Purchase Price
credit in accordance with Section 2.5(d), the amount of the reduction of the Threshold Amount shall
be net of the amount of such Purchase Price credit. For avoidance of doubt and by way of
clarification (i) this Section 9.6(b) shall not affect Buyer’s right to receive a credit to the
Purchase Price in accordance with Section 2.5(d) and (ii) the Threshold Amount shall at no time be
increased or replenished.

          (c) Except for any such Claims involving fraud or intentional misrepresentation or any
inaccuracy in or breach of any representations or warranties of the Fisher Parties set forth in
Section 4.2 (Authorization), Section 4.5 (Title), Section 4.15 (Taxes), or Section 4.25
(Environmental Compliance), the liability of the Fisher Parties or Buyer for Claims asserted
pursuant to Sections 9.1(a) or 9.1(i) (as it relates to 9.1(a)) or 9.2(a) or 9.2(e) (as it relates
to 9.2(a)) shall not exceed Ten Million Dollars ($10,000,000).

ARTICLE 10

FURTHER AGREEMENTS

     10.1 Event of Loss. Upon the occurrence of an Event of Loss prior to the Closing, the
Fisher Parties shall take reasonable steps to repair, replace and restore damaged, destroyed or
lost property to its condition prior to any such loss, damage, or destruction. In the event of any
such loss, damage, or destruction, the proceeds of any claim for any loss, payable under any
insurance policy with respect thereto, shall be used to repair, replace, or restore any such
property to its former condition subject to the conditions stated below. In the event of any loss
or damage to the Stations or any of the Purchased Assets, the Fisher Parties shall notify Buyer
thereof in writing immediately. Such notice shall specify with particularity the loss or damage
incurred, the cause thereof (if known or reasonably ascertainable), and the insurance coverage. In
the event that the property is not completely repaired, replaced or restored on or before the
scheduled Closing Date, Buyer at its option: (a) may elect to postpone Closing until such time as
the property has been completely repaired, replaced or restored (and, if necessary, the Fisher
Parties shall join Buyer in requesting from the FCC any extensions of time in which to consummate
the Closing that may be required in order to complete such repairs); or (b) may elect to consummate
the Closing and accept the property in its then condition, in which event the Fisher Parties shall
pay to Buyer all proceeds of insurance and assign to Buyer the right to any unpaid proceeds. The
Fisher Parties shall have no responsibility to repair or replace damaged or destroyed Purchased
Assets not covered by insurance if the cost of such repair exceeds Five Hundred Thousand Dollars
($500,000) in the aggregate; provided, however, Buyer shall have the right to accept the Purchased
Assets subject to such Event of Loss and receive a Five Hundred Thousand Dollars ($500,000) credit
against the Purchase Price plus all proceeds of insurance and an assignment by Seller to Buyer of
the right to any unpaid proceeds; provided further, however, that should the Fisher Parties not
advise Buyer within five (5) days after being requested to do so that the Fisher

55

 

Parties will repair or replace such Purchased Assets, Buyer may terminate this Agreement
without penalty upon ten (10) days’ written notice to the Fisher Parties, and upon such termination
Buyer shall be entitled to have the Escrow Deposit, together with all accrued interest, returned to
it on or on the business day following such termination.

     10.2 Station Employees.

          (a) Buyer specifically reserves to itself the right to employ or not employ any and all
current employees of Seller at Buyer’s sole and absolute discretion. Nothing in this Agreement
shall be construed as a commitment or obligation of Buyer to offer employment to, accept for
employment, or otherwise continue the employment of, any of Seller’s employees, or to continue the
terms and conditions of employment previously enjoyed by Seller’s employees.

          (b) To the extent any of the Stations’ employees accept employment with Buyer (collectively,
the “Transferred Employees”), such Transferred Employees will be included in Buyer’s then-existing
employee welfare benefit plans (if any) and will be subject to Buyer’s then-existing employment
policies, as generally applicable to Buyer’s employees.

          (c) Nothing herein shall restrict Buyer’s ability to change or terminate the benefits or
benefit plans provided to Buyer’s employees (including Transferred Employees), nor shall Buyer be
required to provide to any employee any of the terms and conditions of employment provided by
Seller, subject, however, to the requirements of any written employment agreements of Seller which
Buyer agrees to assume. This Section 10.2 shall operate exclusively for the benefit of the parties
to this Agreement and not for the benefit of any other Person, including, without limitation, any
current, former or retired employee of Seller or Buyer.

          (d) Seller agrees that it shall be solely responsible and liable for any medical, disability,
severance, vacation, sick leave or other benefits owed under Seller’s benefit plans, including,
without limitation, any expenses for health or dental benefits incurred but not submitted for
reimbursement prior to the Closing that are covered under Seller’s benefit plans. Seller will be
solely responsible for providing, at its cost, all life and other insurance coverage and benefits,
and disability benefits to which any employee of Seller who retired or was terminated from service
with Seller on or prior to the Closing Date or who was disabled prior to the Closing Date is
entitled.

          (e) Seller and Buyer acknowledge and agree that Buyer shall not assume any liability
whatsoever for any compensation arrangement or bonus plan for any Transferred Employees, except to
the extent liabilities in respect of any such amounts have been included in calculating the
adjustments pursuant to Section 2.5.

          (f) Seller agrees that it will not enter into any collective bargaining agreement that would
be contractually binding on Buyer without Buyer’s prior written consent. Any such collective
bargaining agreement will not be effective as to Buyer until on or after the Closing Date. Seller
further agrees that, upon Buyer’s request and with the consent of the labor organization, Seller
will allow Buyer or its designated representative to engage in negotiations for a collective
bargaining agreement with the labor organization certified by the NLRB as the representative of a
group of included employees.

56

 

     10.3 WARN Act. Seller shall be responsible for compliance with applicable provisions
of the Worker Adjustment and Retraining Act, as amended (the “WARN Act”). To the extent any
obligations under the WARN Act might arise as a consequence of the transactions contemplated by
this Agreement, Seller shall be responsible for, and indemnify Buyer and its Affiliates (as
hereinafter defined) against any losses caused by, arising from, incurred in connection with or
relating in any way to, any obligations under the WARN Act arising as a result of any employment
losses occurring prior to or on the Closing Date.

     10.4 Bulk Transfer. Buyer and Seller hereby waive compliance with the bulk transfer
provisions of the Uniform Commercial Code and all similar laws. Except for the Assumed
Liabilities, Seller shall promptly pay and discharge when and as due all liabilities and
obligations arising out of or relating to Seller’s ownership, operation and sale of the Stations.
Except for the Assumed Liabilities, Seller hereby agrees to indemnify, defend and hold Buyer
harmless from and against any and all liabilities, losses, costs, damages or causes of action
(including, without limitation, reasonable attorneys’ fees and other legal costs and expenses)
arising out of or relating to claims asserted against Buyer pursuant to the bulk transfer
provisions of the Uniform Commercial Code or any similar law.

ARTICLE 11

TERMINATION; MISCELLANEOUS

     11.1 Termination. This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time prior to the Closing Date, as follows:

          (a) by mutual written agreement of Seller and Buyer; or

          (b) by written notice of Buyer to the Fisher Parties if any of the conditions set forth in
Article 7 of this Agreement shall not have been fulfilled by the Closing Date or as otherwise
provided herein (other than by reason of Buyer’s failure to comply with its obligations under this
Agreement or its breach of representation or warranty); or

          (c) by written notice of Buyer to the Fisher Parties if the Fisher Parties have failed to cure
a material breach of their representations, warranties or covenants under this Agreement within
thirty (30) calendar days after they receive notice from Buyer of such occurrence; or

          (d) by written notice of Buyer to the Fisher Parties if there shall have been a Material
Adverse Effect; or

          (e) by written notice of the Fisher Parties to Buyer if any of the conditions set forth in
Article 8 of this Agreement shall not have been fulfilled by the Closing Date (other than by reason
of a failure by the Fisher Parties to comply with their obligations under this Agreement or their
breach of representation or warranty); or

          (f) by written notice of the Fisher Parties to Buyer if Buyer has failed to cure a material
breach of its representations, warranties or covenants under this Agreement within thirty (30)
calendar days after it receives notice from the Fisher Parties of such occurrence; or

57

 

          (g) by Buyer or Seller by written notice to the other party, subject to Section 3.4, if the
Closing has not occurred on or before one (1) year from the date hereof, other than by reason of
the terminating party’s failure to comply with its obligations under this Agreement, unless one or
more of the applications to transfer the Licenses are challenged by a third party, in which case
this Agreement shall continue in full force and effect; provided however, this Agreement may be
terminated by Buyer or Seller if the Closing has not occurred on or before the six (6) month period
immediately following the expiration of the foregoing one (1) year period; or

          (h) by written notice of the Fisher Parties to Buyer or Buyer to the Fisher Parties in
accordance with, and subject to the limitations of, Section 6.2(d)(III); or

          (i) by Buyer in accordance with Section 10.1 (Event of Loss).

     11.2 Rights on Termination; Waiver.

          (a) In the event of the termination of this Agreement as provided in Section 11.1 above, all
further obligations of the parties under or pursuant to this Agreement shall terminate without
further liability of either party to the other, except (i) as provided in Section 11.2(b) and (c)
below, and (ii) for claims resulting from any breach of this Agreement prior to the termination of
this Agreement. Except as set forth in Section 11.2(c), the Escrow Deposit, together with all
accrued interest thereon, shall be returned promptly to Buyer pursuant to the terms of the Escrow
Agreement upon termination of this Agreement.

          (b) If Buyer is the terminating party of this Agreement and such termination is pursuant to
Sections 11.1(c) or (d) above and Buyer is not in material default of its obligations under this
Agreement and has not breached in any material respects its representations and warranties
hereunder, then Buyer shall be entitled to pursue all legal and equitable remedies against Seller
for such default or breach, including specific performance (the Fisher Parties hereby acknowledge
that the Purchased Assets are unique and that Buyer has no adequate remedy at law if the Fisher
Parties breach this Agreement), and the Fisher Parties agree to waive the defense in any such suit
that Buyer has an adequate remedy at law and to interpose no opposition, legal or otherwise, as to
the propriety of specific performance as a remedy. In the event Buyer elects to terminate this
Agreement as a result of the Fisher Parties’ breach instead of seeking specific performance (or if
Buyer is denied the remedy of specific performance of Fisher Parties’ obligations under this
Agreement), Buyer shall be entitled to (i) the return of the Escrow Deposit and all interest earned
thereon, and (ii) recover from the Fisher Parties Buyer’s actual damages occasioned by the Fisher
Parties’ breach, including without limitation, attorneys fees and costs, bank commitment fees, due
diligence costs and other expenses reasonably incurred by Buyer in attempting to consummate the
transaction contemplated by this Agreement; provided, however, the amount Buyer shall be entitled
to recover pursuant to this Section 11.2(b)(ii) shall not exceed $1,600,000.

          (c) If a Fisher Party is the terminating party of this Agreement and such termination is
pursuant to Section 11.1(f) above and each Fisher Party is not in material default of its
obligations under this Agreement and has not breached in any material respect its representations
and warranties hereunder and there shall have been no Material Adverse Effect,

58

 

then the Fisher Parties shall be entitled to receive as liquidated damages (i) the Escrow
Deposit (including all interest or other proceeds earned thereon, less any compensation due to the
Escrow Agent) and (ii) the Fisher Parties’ actual attorneys fees in attempting to consummate the
transactions contemplated by this Agreement, which amounts shall be substantiated by the Fisher
Parties to the reasonable satisfaction of the Buyer. Such liquidated damages shall be the Fisher
Parties’ sole and exclusive remedy and shall be in lieu of any other remedies at law or in equity
to which the Fisher Parties might otherwise be entitled due to Buyer’s wrongful failure to
consummate the transactions contemplated by this Agreement. Buyer and the Fisher Parties each
acknowledges and agrees that the liquidated damage amount is reasonable in light of the anticipated
harm which would be caused by Buyer’s breach of this Agreement, the difficulty of proof of loss,
the inconvenience and non-feasibility of otherwise obtaining an adequate remedy, and the value of
the transactions to be consummated hereunder. The parties agree that the liquidated damages
provided in this Section are intended to limit the claims that the Fisher Parties may have against
Buyer in the circumstances described herein.

     11.3 Further Assurances. From time to time after the Closing Date, upon the
reasonable request of Buyer, any Fisher Party shall execute and deliver, or cause to be executed
and delivered, such further instruments of conveyance, assignment and transfer and take such
further action as Buyer may reasonably request in order more effectively to sell, assign, convey,
transfer, reduce to possession and record title to any of the Purchased Assets. The Fisher Parties
agree to cooperate with Buyer in all reasonable respects to assure to Buyer the continued title to
and possession of the Purchased Assets in the condition and manner contemplated by this Agreement.

     11.4 Schedules. Any disclosure with respect to a Section of this Agreement requires a
specific reference in the Schedules to such Section of the Agreement to which any such disclosure
applies, and no disclosure shall be deemed to apply with respect to any Section to which it does
not expressly apply.

     11.5 Survival. The obligations to indemnify contained in Article 9 hereof, the
agreements contained herein, the representations and warranties made in this Agreement or made
pursuant hereto shall survive the Closing and the consummation of the transactions contemplated by
this Agreement, and shall survive any independent investigation by Buyer or Seller, and any
dissolution, merger or consolidation of Buyer or Seller and shall bind the legal representatives,
assigns and successors of Buyer and Seller.

     11.6 Entire Agreement; Amendment; and Waivers. This Agreement and the documents
referred to herein and to be delivered pursuant hereto constitute the entire agreement between the
parties pertaining to the subject matter hereof, and supersede all prior and contemporaneous
agreements, understandings, negotiations and discussions of the parties, whether oral or written,
and there are no warranties, representations or other agreements between the parties in connection
with the subject matter hereof, except as specifically set forth herein. No amendment, supplement,
modification, waiver or termination of this Agreement shall be binding unless executed in writing
by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision or breach of this Agreement, whether or
not similar, unless otherwise expressly provided.

59

 

     11.7 Expenses. Except as otherwise specifically provided herein, whether or not the
transactions contemplated by this Agreement are consummated, each of the parties hereto shall pay
the fees and expenses of its respective counsel, accountants and other experts incident to the
negotiation and preparation of this Agreement and consummation of the transactions contemplated
hereby.

     11.8 Benefit; Assignment. This Agreement shall be binding upon and inure to the
benefit of and shall be enforceable by Buyer and Seller and their respective proper successors and
assigns. This Agreement may not be assigned by Buyer to another party without the prior written
consent of Seller, which consent will not be unreasonably withheld; provided,
however, that (a) Buyer may assign this Agreement to any entity or entities which are
Affiliates of Buyer or which are direct or indirect subsidiaries of Buyer, and (b) no such
assignment to such Affiliates or subsidiaries shall relieve Buyer of its obligations hereunder.
With respect to any permitted assignment hereunder, the parties shall reasonably cooperate to take
actions necessary to effectuate such assignment, including but not limited to cooperating in any
appropriate filings with the FCC or other governmental authorities. Upon prior written notice to
Seller, Buyer may make an assignment of its rights hereunder to any third party or to a voting
trust solely in connection with the transactions contemplated by the Great Falls Waiver; provided,
however, that failure to provide such notice shall not invalidate such assignment.

     11.9 Confidentiality; Public Announcements.

          (a) Buyer agrees that prior to Closing, Buyer and its agents and representatives shall not use
for its or their own benefit (except when required by law and except for use in connection with
Buyer’s financing of the transactions contemplated by, and Buyer’s investigation of the Stations
and its assets in connection with, this Agreement), and shall hold in strict confidence and not
disclose: (i) any data or information relating to Seller, their affiliates or the Stations obtained
from Seller or any of its directors, officers, employees, agents or representatives in connection
with this Agreement; or (ii) any data and information relating to the business, customers,
financial statements, conditions or operations of the Stations, in each case which is confidential
in nature and not generally known to the public (clauses (i) and (ii) together, “Seller’s
Information”). If the transactions contemplated in this Agreement are not consummated for any
reason, Buyer shall return to Seller all data, information and any other written material
(including, without limitation, material in electronic form) obtained by Buyer from Seller in
connection with the transactions contemplated by this Agreement and any copies, summaries or
extracts thereof, and shall refrain from disclosing any of Seller’s Information to any third party
or using any of Seller’s Information for its own benefit or that of any other Person.

          (b) Seller agrees that Seller and their respective agents and representatives shall not use
for their own benefit (except when required by law and except for use in connection with their
respective investigations and reviews of Buyer in connection with this Agreement), and shall hold
in strict confidence and not disclose: (i) any data or information relating to Buyer or its
affiliates obtained from Buyer, or from any of its directors, officers, employees, agents or
representatives, in connection with this Agreement; or (ii) any data and information relating to
the business, customers, financial statements, conditions or operations of Buyer which is
confidential in nature and not generally known to the public (clauses (i) and (ii) together

60

 

“Buyer’s Information”). If the transactions contemplated in this Agreement are not
consummated for any reason, Seller shall return to Buyer all data, information and any other
written material (including, without limitation, material in electronic form) obtained by Seller
from Buyer in connection with this transaction and any copies, summaries or extracts thereof and
shall refrain from disclosing any of Buyer’s Information to any third party or using any of Buyer’s
Information for its own benefit or that of any other Person.

          (c) Prior to Closing, except as otherwise required by law or regulation or by the rules,
regulations or policies of any national securities exchange or association, no party hereto will
make any public announcement regarding the transactions described in this Agreement without the
prior consent of the other parties hereto, which consent will not be unreasonably withheld,
conditioned or delayed.

     11.10 Exclusivity. The Fisher Parties will not, after the date hereof: (a) solicit,
initiate or encourage the submission of any proposal or offer from any Person relating to (i) the
liquidation, dissolution, sale of assets or stock, or recapitalization of, (ii) merger or
consolidation with or into, (iii) acquisition or purchase of assets of (other than in the ordinary
course of business) or any equity interest in, or (iv) similar transaction or business combination,
involving any Station (each, an “Alternative Transaction”), or (b) institute, pursue, or engage in
any discussions, negotiations, or agreements with any Person concerning any of the foregoing, or
(c) furnish any information with respect to any effort or attempt by any other Person to do any of
the foregoing. The Fisher Parties will immediately notify Buyer of any offer received from third
parties regarding an Alternative Transaction.

     11.11 Notices. All communications or notices required or permitted by this Agreement
shall be in writing and shall be deemed to have been given at the earlier of (i) the date when sent
by telecopy or facsimile machine to the number shown below, or (ii) the business day after being
properly deposited for delivery by commercial overnight delivery service, prepaid, or (iii) five
(5) days after deposit in the United States mail, certified or registered mail, postage prepaid,
return receipt requested, and addressed as follows, unless and until either of such parties
notifies the other in accordance with this Section of a change of address or change of telecopy
number:

	 	 	 	 	 
	 

	 	If to Buyer:
	 	Cherry Creek Radio LLC
	 

	 	 	 	501 South Cherry Street, Suite 480
	 

	 	 	 	Denver, CO 80246
	 

	 	 	 	Attention:       Joe Schwartz
	 

	 	 	 	Telecopy No.: (303) 468-6555
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Lord, Bissell & Brook LLP
	 

	 	 	 	1900 The Proscenium
	 

	 	 	 	1170 Peachtree St., N.E.
	 

	 	 	 	Atlanta, Georgia 30309
	 

	 	 	 	Attention:       Neil H. Dickson, Esq.
	 

	 	 	 	Telecopy No.: (404) 872-5547
	 
	 	 	 	 
	 

	 	If to the

Fisher Parties:
	 	Fisher Communications Inc.

61

 

	 	 	 	 	 
	 

	 	 	 	100 4th Avenue North, Suite 440
	 

	 	 	 	Seattle, WA 98109
	 

	 	 	 	Attention:       Colleen B. Brown
	 

	 	 	 	Telecopy No.: (206) 404-6783
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Graham & Dunn
	 

	 	 	 	1420 Fifth Avenue, 33rd Floor
	 

	 	 	 	Seattle, WA 98101
	 

	 	 	 	Attention:       Jack G. Strother, Esq.
	 

	 	 	 	Telecopy No.: (206) 340-9599

     11.12 Counterparts; Headings. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but such counterparts shall together constitute but one and the
same Agreement. The Table of Contents and Article and Section headings in this Agreement are
inserted for convenience of reference only and shall not constitute a part hereof.

     11.13 Income Tax Position. Neither Buyer nor Seller shall take a position for income
tax purposes which is inconsistent with this Agreement.

     11.14 Severability. If any provision, clause or part of this Agreement or the
application thereof under certain circumstances is held invalid, or unenforceable, the remainder of
this Agreement, or the application of such provision, clause or part under other circumstances,
shall not be affected thereby.

     11.15 Electronic Notices, Signatures or Records. For purposes of providing notices
required or permitted by this Agreement, waiving any right under this Agreement, or amending any
term of this Agreement and notwithstanding any law recognizing electronic signatures or records, “a
writing signed,” “in writing” and words of similar meaning, shall mean only a writing in a tangible
form bearing an actual “wet” signature in ink manually applied by the person authorized by the
respective party, unless both parties agree otherwise by making a specific reference to this
Section.

     11.16 Legal Actions.

          (a) This Agreement shall be construed and interpreted according to the laws of the State of
Colorado, without regard to the conflict of law principles thereof.

          (b) If either Seller or Buyer initiates any legal action or lawsuit against the other
involving this Agreement, the prevailing party in such action or suit shall be entitled to receive
reimbursement from the other party for all reasonable attorneys’ fees and other costs and expenses
incurred by the prevailing party in respect of that litigation, including any appeal, and such
reimbursement maybe included in the judgment or final order issued in such proceeding. Any award
of damages following judicial remedy as a result of the breach of this Agreement or any if its
provisions shall include an award of prejudgment interest from the date of the breach at the
maximum rate of interest allowed by the law.

[Signatures on following page]

62

 

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

	 	 	 	 	 	 	 
	 	 	“BUYER”	 	 
	 
	 	 	 	 	 	 
	 	 	CHERRY CREEK RADIO LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph D. Schwartz	 	 
	 

	 	Name:
	 	Joseph D. Schwartz 

	 	 
	 

	 	Its:	 	President / CEO 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	“SELLER”	 	 
	 
	 	 	 	 	 	 
	 	 	FISHER RADIO REGIONAL GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert C. Bateman	 	 
	 

	 	Name:
	 	Robert C. Bateman

	 	 
	 

	 	Its:	 	Vice President, Finance	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	“PARENT”	 	 
	 
	 	 	 	 	 	 
	 	 	FISHER COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert C. Bateman 	 	 
	 

	 	Name:
	 	 Robert C. Bateman 

	 	 
	 

	 	Its:	 	Senior VP & CFOexv10w3

 

EXHIBIT 10.3

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of this
26th day of June, 2006, by and among Christopher J. Racine, an individual who is a resident
of the State of Washington (“Seller”), African-American Broadcasting of Bellevue, Inc., a
Washington corporation (d/b/a African-American Broadcasting Co. of Bellevue, Inc. and
African-American Broadcasting Company of Bellevue, Inc. ) (the “Company”), and Fisher Broadcasting
Company, a Washington corporation (“Buyer”).

RECITALS:

     WHEREAS, Seller owns Ten Thousand (10,000) shares of common stock of the Company, with no par
value (the “Stock”), constituting 100% of the shares of the Company’s issued and outstanding
capital stock;

     WHEREAS, the Company is the owner and licensee of Television Station KWOG(TV), Bellevue,
Washington (FCC Facility ID No. 4624) (the “Station”), and holds substantially all of the assets or
rights used or useful in the operation of the Station;

     WHEREAS, Seller desires to convey to Buyer and Buyer desires to acquire from Seller all of the
Stock, which acquisition shall be effected as follows, pursuant to the terms and subject to the
conditions of this Agreement: (i) as of the date hereof, Seller will sell to Buyer, and Buyer will
acquire from Seller, 25% of the Stock of the Company, and (ii) at the subsequent closing
contemplated hereby, Seller will sell to Buyer, and Buyer will acquire from Seller all of the
remaining issued and outstanding Stock of the Company;

     WHEREAS, contemporaneously with the execution of this Agreement, the Company and Buyer are
entering into a Local Marketing Agreement for the Station (the “LMA”); and

     WHEREAS, the parties recognize that control of the Company may not be conveyed to Buyer
without the prior consent of the Federal Communications Commission (the “FCC” or “Commission”).

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below, the
parties, intending to be legally bound, agree as follows:

ARTICLE 1

SALE OF STOCK

     On the terms and subject to the conditions set forth in this Agreement, (a) on the date
hereof, Seller shall, and does hereby, assign, transfer, convey and deliver to Buyer, and Buyer
shall, and does hereby, acquire from Seller, all of the right, title and interest of Seller in and
to Two Thousand Five Hundred (2,500) shares of the Stock (the “Initial Shares”), free and clear of
Liens, except for Permitted Liens (as defined below), and (b) on the Closing Date (as defined in
Article 3), Seller shall assign, transfer, convey and deliver to Buyer, and Buyer shall acquire
from Seller, all of the right, title and interest of Seller in and to Seven Thousand Five Hundred

 

 

(7,500) shares of the Stock (the “Closing Shares”), constituting all of the remaining shares
of the Stock, free and clear of Liens, except for Permitted Liens. As used herein, the term
“Liens” means all liens, pledges, claims, orders, security interests, writs, judgments, possessory
interests, options and encumbrances of any kind, and the term “Permitted Liens” means liens for
taxes not yet due and payable.

ARTICLE 2

PURCHASE PRICE

2.1. Purchase Price. The aggregate purchase price to be paid by Buyer to Seller for the
Stock shall be Sixteen Million Dollars ($16,000,000.00) (the “Purchase Price”), due and payable as
set forth in Section 2.2.

2.2. Payment of Purchase Price.

     (a) Upon execution of this Agreement, in consideration for the Initial Shares, Buyer will pay
to Seller the sum of Four Million Dollars ($4,000,000.00) by wire transfer of immediately available
funds to an account specified by Seller.

     (b) At the Closing, in consideration for the Closing Shares Buyer will pay to Seller the sum
of Twelve Million Dollars ($12,000,000.00) by wire transfer of immediately available funds to
accounts specified by Seller.

2.3. Prorations and Adjustments. All revenues and expenses arising from the Company’s
business shall be prorated between Seller and Buyer in accordance with the principle that, except
as expressly otherwise set forth in this Agreement or the LMA, (a) Seller shall be entitled to the
benefit of all revenues, and shall be responsible for all expenses, relating to the business and
operations of the Company for the period ending at 11:59 p.m. on the day prior to the Closing Date,
and (b) Buyer shall be entitled to the benefit of all revenues, and be responsible for all
expenses, relating to the business and operations of the Company thereafter. The outstanding debts
of the Company (if any) at Closing, associated with the Liens identified in Schedule 5.10 hereto
(the “Closing Liens”) shall be discharged and paid at the Closing, and the funds transferred to
Seller pursuant to Section 2.2(b) will be reduced by the Payoff Amount (if applicable) pursuant to
Section 13.2(a). Except as otherwise provided herein, the prorations and adjustments contemplated
by this Section, to the extent practicable, shall be made on the Closing Date. As to those
prorations and adjustments not capable of being ascertained on the Closing Date, an adjustment and
proration shall be made within ninety (90) calendar days of the Closing Date. In the event of any
disputes between the parties as to such prorations and adjustments, the amounts not in dispute
shall nonetheless be paid at the time provided herein and such disputes shall be determined by an
independent certified public accountant mutually acceptable to the parties, and the fees and
expenses of such accountant shall be paid one half by Buyer and one half by Seller.

ARTICLE 3

CLOSING

3.1. Closing with respect to the Initial Shares. The consummation of the transaction
contemplated in this Agreement with respect to the purchase and sale of the Initial Shares (the

2

 

“Initial Closing”) shall take place simultaneously with the execution and delivery of this
Agreement. Subject to the delivery by Buyer of the payment contemplated in Section 2.2(a), Seller
shall deliver to Buyer one or more certificates representing the Initial Shares accompanied by
stock powers endorsed in blank, sufficient to convey and transfer to Buyer title to the Initial
Shares (the “Initial Stock Certificate”), and the Company shall, and Seller shall cause the
Company, to record such transfer to Buyer of the Initial Shares in its books and records. The
Initial Closing shall be conducted by exchange of executed documents by facsimile or other
electronic delivery with originals to be delivered by overnight courier service, or at such place
as the parties hereto may agree.

     (a) The obligations of Buyer to consummate the transactions contemplated by this Agreement for
the Initial Closing are subject to the satisfaction or waiver by Buyer of the condition that all
representations and warranties of Seller made in this Agreement or in any exhibit, schedule or
document delivered pursuant hereto (a) if qualified by materiality, shall be true and complete in
all respects and (b) if not so qualified, shall be true and complete in all material respects, as
of the date hereof.

     (b) Subject to the delivery by Buyer of the payment contemplated in Section 2.2(a), as of the
date hereof, together with the Initial Stock Certificate, Seller shall deliver to Buyer the
following:

          (i) a copy of the articles of incorporation of the Company, certified as of a date no earlier
than five (5) days prior to the Initial Closing;

          (ii) a certificate of the Secretary of the Company, dated as of the date hereof, certifying a
copy of the bylaws of the Company in effect as of such date;

          (iii) a certificate, dated as of the date hereof, executed by Seller, certifying that the
conditions set forth in Section 3.1(a) have been fulfilled;

          (iv) an opinion of corporate counsel to the Company in a form reasonably agreeable to Buyer,
in the form set forth in Exhibit A attached hereto; and

          (v) a certificate of the Secretary of the State of Washington as of a date no earlier than
five (5) days prior to the date hereof regarding the due incorporation and good standing of the
Company.

3.2. Closing with respect to the Closing Shares. The consummation of the transactions
contemplated in this Agreement with respect to the purchase and sale of the Closing Shares (the
“Closing”) shall occur within five (5) business days after (a) the FCC Consent (as defined in
Section 4.1) to the transfer of control of the Station Licenses, and (b) all other terms and
conditions as set forth in Articles 10 and 11 have been satisfied (the “Closing Date”).
Notwithstanding the foregoing, should a petition to deny or other protest be filed against the FCC
Application (as defined in Section 4.2) on or before the Closing Date, Buyer may elect to postpone
the Closing until five (5) business days after the FCC Consent has become a Final Order, provided,
however, that in the event that Buyer elects to exercise the right under the provisions of this
sentence prior to September 28, 2006, Buyer may not delay the Closing Date past September 28, 2006.
For purposes of this Agreement, a “Final Order” shall mean action by

3

 

the FCC granting the FCC Application that is not reversed, stayed, enjoined, set aside, annulled or
suspended, and with respect to which no timely request for stay, petition for rehearing or
reconsideration, application for review or appeal is pending, and as to which the time for filing
any such request, petition, application or appeal, or for reconsideration by the FCC on its own
motion, has expired. The Closing shall be conducted by exchange of executed documents by facsimile
or other electronic delivery with originals to be delivered by overnight courier service, or at
such place as the parties hereto may agree. In the event that the Closing shall occur prior to the
date on which the FCC Consent has become a Final Order and the FCC Consent subsequently is reversed
or otherwise set aside, the parties shall take those steps necessary to unwind the transaction and
place the parties, to the extent possible, in the position in which they were situated prior to the
Closing.

ARTICLE 4

GOVERNMENTAL CONSENTS

4.1. Consents. The occurrence of the Closing is subject to and conditioned upon prior FCC
consent (the “FCC Consent”) to the transfer of control of the Station Licenses to Buyer.

4.2. FCC. Within five (5) business days following the date of execution of this Agreement,
Seller and Buyer shall file an application with the FCC (the “FCC Application”) requesting the FCC
Consent. Buyer and Seller shall diligently prosecute the FCC Application and otherwise use their
best efforts to obtain the FCC Consent as soon as possible.

4.3. General. Seller and Buyer shall notify each other of all documents filed with or
received from any Governmental Entity with respect to this Agreement or the transactions
contemplated hereby. Seller and Buyer shall furnish each other with information and assistance as
the other may reasonably request in connection with its preparation of any governmental filing
hereunder.

4.4. License Renewal. Seller and the Company each acknowledges that the Station’s license
renewal application is due to be filed with the FCC on or before October 2, 2006. If such renewal
application is due prior to Closing Date and if not previously filed, the Company shall, and Seller
shall cause the Company to, timely file the FCC license renewal application for the Station and
thereafter prosecute such application with commercially reasonable diligence. If necessary to
expedite grant of the renewal application, the Company agrees to, and Seller agrees to cause the
Company to, enter into a standard “tolling agreement” with the FCC. The parties acknowledge that
under current FCC policy, either the FCC will not grant a transfer of control application while a
renewal application is pending, or the FCC will grant a transfer of control application with a
renewal condition. If grant of the FCC Application is subject to a renewal condition, then the
term “FCC Consent” shall mean FCC grant of the FCC Application and satisfaction in full of all such
renewal conditions.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF SELLER AND THE COMPANY

     Each of Seller and the Company, jointly and severally, hereby make the following
representations and warranties to Buyer:

4

 

5.1. Organization, Authority and Binding Agreements. The Company is a corporation, duly
organized, validly existing and in good standing under the Laws of the State of Washington. The
Company has all requisite corporate power and authority to own, lease, operate or otherwise hold
the assets owned, leased or otherwise held by it and to carry on its business and operations,
including the business and operations of the Station (the “Station Business”) as now being
conducted. The Company has full legal right and capacity to execute, deliver and perform the
documents contemplated hereby to which the Company is a party according to their respective terms
and such documents contemplated hereby shall be duly executed and delivered by the Company and
shall constitute legal, valid and binding agreements of the Company enforceable in accordance with
their terms, except to the extent that (a) such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar Laws now or hereafter in effect relating to
creditor’s rights generally and (b) the remedy of specific performance or injunctive and other
forms of equitable relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

5.2. Absence of Conflicting Agreements or Required Consents. Except for the FCC Consent
contemplated in this Agreement, the execution and delivery of this Agreement shall not: (a)
violate, conflict with or result in any breach or default of any provision of the organizational
documents of the Company, (b) violate any applicable statute, ordinance, law, judgment, settlement,
order, injunction, decree, rule, regulation or ruling of any court administrative agency or
commission or other governmental entity or instrumentality (a “Governmental Entity”) applicable to
Seller or the Company; or (c) either alone or with the giving of notice or the passage of time,
violate the terms, conditions or provisions of, or constitute a default or breach under, any
agreement, commitment, instrument, license or permit to which Seller or the Company is now subject.

5.3. Capitalization. The Stock constitutes the entire authorized capital stock of the
Company. No other shares of stock of the Company are issued or outstanding. The Stock has been
duly authorized and is validly issued, fully paid and non-assessable. Seller owns and holds all
legal and beneficial right, title and interest in and to the Stock, free and clear of all Liens,
except Permitted Liens, and the authorization of no other person or entity is required in order to
consummate the transactions contemplated herein by virtue of any such person or entity having an
equitable or beneficial interest in the Company or the Stock. No shares of the capital stock of
the Company are held in the treasury of the Company. There are no outstanding subscriptions,
options, warrants, rights, calls, commitments, conversion rights, rights of exchange, plans or
other agreements of any character providing for the purchase, issuance, redemption, or sale of any
shares of Stock of the Company, nor are there any other rights to acquire shares of the capital
stock of the Company or securities of any kind convertible or exchangeable into or for any capital
stock of the Company. There are no outstanding or authorized stock appreciation, phantom stock,
profit participation, or similar rights with respect to Company. There are no stockholder
agreements, voting trusts, proxies, or other agreements or understandings with respect to the
voting or transfer of any of the Stock. The Company has no subsidiaries and holds no capital stock
or securities in any other person; the Company is not a member of any limited liability company or
partner in any partnership. The Company is not a participant in any joint venture or similar
arrangement. The Company does not own directly or indirectly, any capital stock or other equity or
ownership interest in any corporation, partnership, limited liability company or other entity.
Seller is the sole director and holds each office of the Company.

5

 

5.4. Compliance with Applicable Laws; FCC Matters.

     (a) Except as permitted or contemplated in this Agreement, the Station Business, including the
operation of the Station is being conducted in material compliance with all licenses, permits and
other authorizations issued to the Company by the FCC with respect to the Station (the “Station
Licenses”) and with each law, ordinance, regulation, judgment, decree, injunction, rule or order
(“Laws”) applicable to the Company or the Station Business. No investigation or review by any
Governmental Entity with respect to the Company or the Station is pending or, to Seller’s or the
Company’s knowledge, threatened. When used throughout this Agreement, the term “knowledge” when
applied to the Company shall mean the actual knowledge of Racine, and the Company shall be deemed
to have “knowledge” of the contents of any written communication actually received by the Company
at the Station’s studio in Seattle or office in Honolulu. Without limiting the generality of the
foregoing and with respect to the Station and the Station Business, the operations of the Station
comply in all material respects with the Communications Act of 1934, as amended (the
“Communications Act”), and all rules, regulations and written policies of the FCC thereunder
(collectively, with the Communications Act, the “Communications Laws”).

     (b) Except as disclosed in Schedule 5.4(b) attached hereto, the Company has duly filed, or
caused to be filed, with the appropriate Governmental Entities all applications, reports,
statements, fees, documents, registrations, filings or submissions with respect to the business or
operations of the Station and the ownership thereof, including applications for renewal of
authority required to be filed by applicable Law. Attached hereto as Schedule 5.4(b) is a true and
complete list all of the Station Licenses, and includes a true and complete list as of the date of
this Agreement of all main station, translator, microwave, low power television and transmitting
earth station licenses (if any) and the date on which each expires. The FCC Licenses listed on
Schedule 5.4(b) constitute all of the licenses and authorizations required under the Communications
Laws for, or used in, the Station Business as currently conducted. Each Station License is in full
force and effect, and the Company is the sole and authorized legal holder thereof. The Station is
operating in all material respects in accordance with the terms of the Station Licenses.

     (c) Except as disclosed in Schedule 5.4(c), there is no action by or before the FCC pending
or, to the knowledge of Seller or the Company, threatened to revoke, suspend, cancel, rescind or
terminate any of the FCC Licenses (except for those affecting the broadcast industry generally),
and there is not now issued or outstanding or pending or overtly threatened, by or before the FCC,
any order to show cause, notice of violation, notice of apparent liability, notice of forfeiture or
materially adverse order, or material complaint, investigation or other proceeding (except for
those affecting the broadcast industry generally) against the Seller, the Company, the Station or
the Station Licenses. Neither Seller nor the Company is aware of any reason why the Station
Licenses will not be renewed by the FCC, on the timely filing of a renewal application and payment
of the applicable fee, in the ordinary course without the imposition of any fine or other sanction.

     (d) Except as set forth on Schedule 5.4(d), the Company has timely made must-carry elections
on behalf of the Station with respect to each cable and satellite multichannel video

6

 

program distributor (“MVPD”) serving the DMA in which the Station is located, and its signal
is currently carried by each such MVPD pursuant to such election.

5.5. Litigation. There is no claim, action, suit, litigation, inquiry, judicial, tax or
administrative proceeding, or arbitration in progress or pending or, to the knowledge of Seller or
the Company, threatened against, involving or arising in connection with the Company, or against
Seller or the Station. No complaint was filed during the present FCC license term of the Station
before any Governmental Entity that alleges unlawful discrimination in the employment practices of
the Company with respect to the Station. The Company is not subject to any judgment, order or
decree entered in any lawsuit or proceeding.

5.6. Insurance. Schedule 5.6 is a true and complete list of all insurance policies of the
Company. All policies of insurance listed in Schedule 5.6 are in full force and effect as of the
date of this Agreement. The Company maintains sufficient insurance or other arrangements with
respect to the Station such that the Station assets can be replaced in the event of damage or
destruction. No event or claim has occurred, including the failure by the Company to give any
notice or information, or the delivery of any inaccurate or erroneous notice or information, or any
reservation of rights, which limits or impairs, or could limit or impair, the rights of the insured
parties under any such insurance policies.

5.7. Real Property Leases. Schedule 5.7(i) identifies and describes all real property
interests (the “Real Property”), used in or held for use in connection with the business of the
Company, including the Station Business. The Company does not own, nor has agreed or has an
option, to acquire any Real Property. The Company has a valid leasehold or license interest in all
of the Real Property and Schedule 5.7(ii) includes complete copies of all leases or licenses for
Real Property, including the Company’s leases for the Station’s studio and transmitter/antenna site
(collectively, the “Real Property Leases”), including all amendments thereto. The Company is the
sole owner and holder of all of the leasehold or license interests and estates purported to be
granted by such Real Property Leases. To Seller’s or the Company’s knowledge, the Real Property
Leases are in full force and effect and are binding and enforceable in accordance with their terms.
The Company has timely performed its obligations under the Real Property Leases. There is no
default or claim of default or breach against the Company or, to Seller’s or the Company’s
knowledge, against any other party to the Real Property Leases, or any event or circumstance that,
with the passage of time or the giving of notice or both, would result in (i) a default by the
Company or (ii) to Seller’s or the Company’s knowledge, a default by any other party to the Real
Property Leases. No notice of termination, foreclosure, eviction, or possession has been received
by the Company with respect to the Real Property Leases. To Seller’s or the Company’s knowledge,
there are no eminent domain proceedings pending or threatened with respect to the real property
upon which the studio, tower and transmitter building are located. The Real Property and all
appurtenances and improvements thereto or thereon, as used, constructed or maintained by the
Company at any time, conform to applicable Laws (including all building, fire, health and
environmental Laws) and no notices of violation of any such Laws have been received by the Company
from any Governmental Entity with respect to any Real Property. The Real Property (including the
improvements thereon) (y) is in good operating condition and repair (ordinary wear and tear
excepted) and no condition exists which could reasonably be expected to interfere with the
customary use and operation thereof and (z) is available for immediate use in the conduct of the
Station Business. The Company does not lease

7

 

to any third party any Real Property and there are no subtenants with respect to any of the Real
Property. To Seller’s or the Company’s knowledge, no financing statements have been filed by any
party with respect to the Real Property Leases.

5.8. Tangible Personal Property. Attached hereto as Schedule 5.8(i) is a true and complete
list of all equipment, antennas, transmitters and other tangible personal property of every kind
and description owned, leased or licensed by the Company, which is used or held for use in the
operation of the Station (the “Tangible Personal Property”). The Company owns and possesses good
and marketable title to all Tangible Personal Property and none of such Tangible Personal Property
is subject to any Liens, other than Permitted Liens and the Liens identified in Schedule 5.10
below. The Tangible Personal Property is in good working condition, with reasonable wear and tear
for its age. To Seller’s or the Company’s knowledge, no financing statements have been filed by
any party with respect to the tangible personal property of the Company, except as set forth in
Schedule 5.8(ii).

5.9. Contractual and Other Obligations. Attached hereto as Schedule 5.9 is a true and
complete list of all those contracts, agreements and leases, licenses, whether written or oral to
which the Company is a party (the “Material Station Contracts”), except for (i) orders for the
purchase of supplies, and (ii) routine maintenance contracts, in each case entered into in the
ordinary course of business, having an unexpired term of less than three (3) months and involving
aggregate remaining payments of less than One Thousand Dollars ($1,000) ((i) and (ii), the
“Ordinary Course Contracts”). All of the Ordinary Course Contracts, in the aggregate, do not
involve payment of more than Five Thousand Dollars ($5,000). Neither the Company nor, to the
knowledge of Seller or the Company, any other party thereto is in material default in the
performance of any covenant or condition under any Material Station Contract or Ordinary Course
Contract (collectively, the “Contracts”). No claim of such a default has been made and, to the
knowledge of Seller or the Company, no event has occurred that, with the giving of notice or the
lapse of time, would constitute such a default under any covenant or condition under any Material
Station Contract. All of the Material Station Contracts are, and on the Closing Date, will be, in
full force and effect, constituting valid and binding obligations of the parties thereto and
enforceable in accordance with their respective terms. Schedule 5.9 identifies each Material
Station Contract containing a “change of control” provision or otherwise requiring the consent of a
third party with respect to the such Material Station Contract upon the consummation of the
transactions contemplated for the Closing.

5.10. Liens and Encumbrances. Except as set forth in Schedule 5.10, all of the Company’s
assets and the Stock, are free and clear of all Liens, other than Permitted Liens. The outstanding
debts of the Company (if any) on the Closing Date, associated with the Closing Liens shall be paid
at the Closing, and such Closing Liens shall be terminated on and as of the Closing Date, whether
pursuant to Section 13.2(a) or otherwise.

5.11. Environmental Matters.

     (a) To Seller’s or the Company’s knowledge, the Company, in its operation and conduct of the
Station Business, including the conduct of its activities with respect to the Real Property, has
complied in all material respects with all applicable federal, state and local statutes, codes,
rules, ordinances or regulations as well as common law decisions relating to the

8

 

environment, natural resources and public or employee health and safety (collectively, the
“Environmental Laws”). The Company has obtained all environmental, health and safety permits
necessary for the operation and the conduct of the Station Business (if any), all such permits are
in full force and effect, and, to Seller’s or the Company’s knowledge, the Company is in compliance
with the terms and conditions of all such permits. There are no outstanding Liens on the Company’s
interest in the Real Property under any Environmental Laws.

     (b) No judicial or administrative proceedings are pending or, to Seller’s or the Company’s
knowledge, threatened against the Company in connection with the Company or the Station Business
alleging the violation of or seeking to impose liability on the Company or otherwise involving the
Real Property or the operations conducted on or in the Real Property, pursuant to any Environmental
Law. No notice or claim from any Governmental Entity or other person has been received by the
Company claiming any violation of or alleging any liability under any Environmental Laws in
connection with the Real Property Leases or the Station.

     (c) To Seller’s or the Company’s knowledge, substances, materials or waste that are regulated
by federal, state or local government under the Environmental Laws as hazardous, toxic or a
pollutant or contaminant, as well as any petroleum or petroleum derived product, used or generated
by the Company in connection with the Station (collectively, the “Hazardous Substances”), have not
been stored, used, treated, and disposed of by the Company or on its behalf in such manner as to
result in any material Environmental Costs or Liabilities. The term “Environmental Costs and
Liabilities” means any losses, including environmental remediation costs, clean up funds,
liabilities, obligations, damages, fines, penalties or judgments arising from or under any
Environmental Law or order of or agreement with any Governmental Entity or other person. To
Seller’s or the Company’s knowledge, no asbestos-containing material is present on or in the Real
Property, and to Seller’s or the Company’s knowledge, the Real Property and all operations
conducted by the Company thereon or therein are in compliance with all federal and state
regulations relating to asbestos. To Seller’s or the Company’s knowledge, the Real Property is in
compliance with all Environmental Laws and there has been no release (nor is there any substantial
threat of a release) of any Hazardous Substance at or from the Real Property in amounts or
concentrations requiring remediation under current Environmental Laws. To Seller’s or the
Company’s knowledge, there are no Hazardous Substances present on or in the Real Property except
for ordinary quantities of properly stored Hazardous Substances found in consumer or commercial
products that are used in the normal course of operations of the Company, including grounds and
building operation and maintenance. To Seller’s or the Company’s knowledge, there are no
underground storage tanks, or underground piping associated with such tanks, used for the
management of Hazardous Substances on the Real Property and, to Seller’s or the Company’s
knowledge, there are no abandoned underground storage tanks at the Real Property which have not
been either abandoned in place or removed (to the extent required by Environmental Laws in effect
at the time such storage tanks, if any, were abandoned or removed), pursuant to notice to or
authorization from the applicable Governmental Entity.

5.12. Taxes.

     (a) All Tax Returns (as defined below) that are required to be filed on or before the
execution of this Agreement on or behalf of the Company have been filed, and the Company will

9

 

file or will cause to be filed all Tax Returns required to be filed by the Company as of the
Closing Date and with respect to any taxable period prior to or which includes the Closing Date.
All such Tax Returns are (or will be) complete and accurate in all material respects. All Taxes
which are due with respect to the Company have been paid by the Company. The provision made for
taxes on the Financial Statements is sufficient for the payment of all Taxes for which the Company
may be liable as of the Closing Date and for all years and periods prior thereto. The Company has
not requested any extension of time within which to file or send any Tax Return (and no such
request has been made on behalf of the Company), which Tax Return has not since been filed or sent
within the proper time period. The Company has maintained all required records relating to Taxes
with respect to the Company and the Station Business.

     (b) No claim, judgment, Lien, settlement, writ, or order for assessment or collection of Taxes
is pending against the Company, and no asset of the Company and none of the Stock is subject to any
Lien for due Taxes. The Company is not party to any pending audit, action, suit, claim,
litigation, proceeding or investigation by any Governmental Entity for the assessment or collection
of Taxes, nor does Seller have knowledge of any such threatened audit, suit, claim, litigation,
action, proceeding or investigation. There are no outstanding agreements or waivers extending the
statutory period of limitations applicable to any Tax Return filed by or on behalf of the Company.
All amounts required to have been withheld or collected by the Company for all periods prior to the
Closing Date in compliance with the withholding or collection provisions of all applicable Tax
jurisdictions have been timely paid by the Company to the proper governmental authorities or
properly deposited or are provided for in the Financial Statements to the extent not required to be
paid or deposited prior to the Closing Date.

     (c) For purposes of this Agreement, the terms “Tax” and “Taxes” shall mean all federal, state,
local, or foreign income, payroll, Medicare, Medicaid, withholding, unemployment insurance, social
security, Federal Insurance Contribution Act, sales, use, service, excise, franchise, gross
receipts, value added, alternative or add on minimum, occupation, real and personal property,
stamp, duty, document, transfer, workers’ compensation, or other tax, levy or assessment of the
same or of a similar nature, including any interest, penalty, or addition thereto, whether disputed
or not. The term “Tax Return” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes or any amendment thereto, and including any
schedule or attachment thereto.

     (d) The Company has never (i) filed any consent or agreement under Section 341(f) of the Code,
(ii) entered into a closing agreement with any tax authority affecting any period after the Closing
Date, (iii) made any payments, or been a party to an agreement (including this Agreement) that
could obligate it to make payments that will not be deductible because of Section 280G of the Code,
or (iv) been party to a tax allocation or tax sharing agreement affecting any period after the date
of this Agreement.

5.13. Financial Statements and Conditions. Set forth on or attached to Schedule 5.13 are
the following financial statements (the “Financial Statements”) in respect of the Station: (a) the
balance sheets as of the end of the fiscal years ended December 31, 2003, 2004 and 2005, and the
related profit and loss statements, on an accrual basis, for the respective fiscal years then
ended, and (b) the balance sheet as of June 10, 2006 and the related statement profit and loss
statement, on an accrual basis, for the period from January 1, 2006 through June 10, 2006. The

10

 

Financial Statements present fairly the financial condition of the Company at the respective dates
thereof and the results of operations of the Station Business for the periods then ended, and are
true and complete in all material respects. There are no liabilities or obligations of the Company
of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or
otherwise, of a nature required by standard broadcast industry accounting practices to be reflected
in financial statements other than (y) liabilities disclosed or provided for in the Financial
Statements and (z) liabilities incurred in the ordinary course of business consistent with past
practice since June 10, 2006 (the “Financial Statements Date”) that are not material to the Company
and, to Seller’s or the Company’s knowledge, there is no circumstance currently existing that could
reasonably be expected to result in any such liability or obligation. Together with the Financial
Statements, accurate and complete copies of the books and records of the Company for the period
beginning January 1, 2001, and ending on the date hereof will be made available to Buyer upon
reasonable notice.

5.14. Absence of Certain Changes or Events. Except as set forth in Schedule 5.14, since
the Financial Statements Date, Seller has operated the Station in the ordinary course of business
consistent with past practice, and there has not been in connection with or related to the Station:

     (a) any obligation or liability (whether absolute, accrued, contingent or otherwise, and
whether due or to become due) incurred by the Company, other than current obligations and
liabilities incurred in the ordinary course of business and consistent with past practice;

     (b) any payment, discharge or satisfaction of any claim or obligation of the Company, except
in the ordinary course of business and consistent with past practice;

     (c) any sale, assignment or other disposition of any tangible asset of the Company (except for
obsolete equipment disposed of in the ordinary course of business consistent with past practice) or
any sale, assignment, license, transfer or other disposition of any Intellectual Property Rights
(as hereinafter defined) or any other intangible assets;

     (d) except in the ordinary course of business, any amendment, modification or termination of
any Material Station Contract;

     (e) any creation of any material claim or Lien (other than Permitted Liens) on any property of
the Company;

     (f) any material write-down of the value of any asset of the Company or any material write-off
as uncollectible of any account receivable or any portion thereof;

     (g) any acceleration in the collection of accounts receivable of the Company;

     (h) any adverse change in cable carriage or channel position on which the Station is carried
(on any cable system with more than 1,000 subscribers);

     (i) any notice from any of the Station’s sponsors as to any of such sponsor’s intention not to
conduct business with the Station, the result of which loss or potential loss of business,
individually or in the aggregate, has had, or could reasonably be expected to have, a Material
Adverse Effect;

11

 

     (j) any period of four (4) or more consecutive days during which the Station was off the air
for any reason or a period of fifteen (15) or more days during which the Station operated at
substantially reduced power;

     (k) any cancellation of any debts or claims or any amendment, termination or waiver of any
rights of value to Seller;

     (l) any capital expenditure or commitment or addition to property, plant or equipment of the
Company, individually or in the aggregate, in excess of Five Thousand Dollars ($5,000);

     (m) any increase in the compensation of any employee, officer, shareholder, director,
consultant or agent of the Company, including any increase pursuant to any bonus, pension,
profit-sharing or other benefit or compensation plan, policy or arrangement or commitment;

     (n) any material damage, destruction or loss (whether or not covered by insurance) affecting
any asset or property of the Company;

     (o) any cancellation, delinquency or loss of any permit, approval, franchise, concession,
license or other governmental authorization;

     (p) any institution of, settlement of or agreement to settle any litigation, arbitration,
action or proceeding;

     (q) any change in the accounting methods or accounting practices followed by the Company or
any change in depreciation or amortization policies or rates;

     (r) any Material Adverse Effect (which, for purposes of this Agreement, means (i) any effect
that is materially adverse to the business, assets, operations, condition (financial or otherwise),
prospects, or results of operations of the Company and the Station Business taken as a whole, but
excluding from this clause (i) any such effect resulting from or arising in connection with (A)
changes or conditions generally affecting the broadcast television industry (except in the case of
this clause (A) if the impact on the Station Business is materially disproportionate to the impact
on broadcast television) or (B) changes in United States general economic, regulatory or political
conditions, (ii) any effect with respect to the Station Business that materially impacts,
materially delays or prevents the consummation of the transactions contemplated hereby, including
the grant of the FCC Consent, (iii) an effect that creates a material limitation on the ability of
the Buyer to conduct the Station Business as conducted immediately prior to the Initial Closing or
Closing, as applicable, or (iv) an effect that creates a limitation in the ability of Buyer to
acquire valid and marketable title to the Stock free and clear of all Liens (other than Permitted
Liens)).

     (s) any agreement or action not otherwise referred to in items (a) through (r) above entered
into or taken that is material to the Station Business; or

     (t) any agreement or commitment, whether in writing or otherwise, to take any of the actions
specified in the foregoing items (a) through (s).

12

 

5.15. Assets of the Business. The assets owned, leased or licensed by the Company and
reflected in the Financial Statements constitute all of the assets used or held for use by the
Company (other than such items as can be readily purchased or licensed at retail and the purchase,
lease or license of which would not, in the aggregate, have a material effect) and such assets are
adequate to carry on the Station Business as it is presently conducted.

5.16. Employee Benefits.

     (a) Neither the Company, nor any person who would be considered a single employer with the
Company pursuant to Section 414(b), (c), (m) or (o) of the Internal Revenue Code (“Code”) (an
“ERISA Affiliate”), maintains or contributes to or has any obligation to contribute to, any
employment, consulting or deferred compensation agreement, or an executive compensation, bonus,
pension, profit sharing, savings, retirement, stock option or other equity based compensation,
severance pay, life, medical, dental, death benefit, disability or accident insurance plan or any
other “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) (individually, a “Seller Plan”, and collectively, the “Seller
Plans”).

     (b) Neither the Company nor any ERISA Affiliate maintains or contributes to, nor has ever had
any obligation to maintain or contribute to, any Seller Plan that is (i) subject to Title IV of
ERISA or Section 412 of the Code, (ii) a “multiemployer plan” within the meaning of Section 3(37)
or 4001(a)(3) of ERISA, (iii) a “multiple employer plan” within the meaning of the Code or ERISA,
(iv) any “employee benefit plan” (as defined in Section 3(3) of ERISA) which provides welfare
benefits to or in respect of former employees, except as may be required pursuant to Section 4980B
of the Code and Section 601, et seq. of ERISA (“COBRA”) and the cost of which are fully paid by
such former employees.

     (c) The consummation of the transactions contemplated by this Agreement will not (i)
accelerate the time of the payment or vesting of, or increase the amount of, compensation due to
any employee or former employee, (ii) reasonably be expected to result in any “excess parachute
payment” under Section 280G of the Code, (iii) result in any liability to any present or former
employee, including as a result of the Worker Adjustment Retraining and Notification Act or any
similar state Law, or (iv) entitle any employee or former employee to severance pay, unemployment
compensation or similar payment.

     (d) The Company has not announced any plan or legally binding commitment to create a Seller
Plan.

5.17. Employment and Labor Matters.

     (a) The Company is not a party to any contract with any labor organization with respect to
employees of the Station, the Company has not agreed to recognize any union or other collective
bargaining unit with respect to employees of the Station, nor has any union or other collective
bargaining unit been certified as representing any of the Station employees.

     (b) The Company has not violated any provision of federal or state Law or any governmental
rule or regulation, or any order, decree, judgment arbitration award of any court, arbitrator or
any government agency regarding the terms and conditions of employment of

13

 

employees, former employees or prospective employees or other labor related matters, including
laws, rules, regulations, orders, rulings, decrees, judgments and awards relating to
discrimination, fair labor standards and occupational health and safety, wrongful discharge or
violation of the personal rights of employees, former employees or prospective employees.

     (c) Schedule 5.17 sets forth a true and correct list of the employees of the Company, as of
the date hereof, together with each such individual’s title, annual compensation, and date
employment commenced with the Company. Except (i) for oral employment contracts terminable at will,
or (ii) as described in Schedule 5.17, the Company has no written or oral contracts of employment
with any employee. Seller has made available to Buyer copies of all employee handbooks and
employee rules and regulations, if any.

5.18. Broker, Commission or Finder’s Fees. Neither Seller nor any entity acting on behalf
of Seller has agreed to pay a broker’s commission, finder’s fee or similar payment in connection
with this Agreement or any matter related hereto.

5.19. No other Representations or Warranties by Company. Buyer agrees that, except for the
representations and warranties (including the schedules with respect thereto) made by the Company
and set forth in this Article 5, neither the Company nor any representative of the Company has made
and shall not be construed as having made to the Buyer or to any representative of Buyer, and
neither Buyer nor any representative of Buyer has relied upon, any other representation or warranty
of any kind.

5.20.  LMA. Notwithstanding anything to the contrary contained in this Agreement, Seller
shall not be deemed to have breached any of his representations or warranties (nor have any
indemnification obligation or any other liability to Buyer under such representations and
warranties) to the extent that the breach or inaccuracy of such representations or warranties is
caused by any act or omission of the Buyer or any of its agents in connection with performance
under LMA, or the failure of Buyer to perform or discharge any of its obligations under the terms
of the LMA.

5.21. Intellectual Property. The Company holds the necessary Intellectual Property Rights
in and to all material copyrights, trademarks, trade names, service marks, licenses, patents,
permits and other similar intangible property rights and interests used or useful in the conduct of
the Company’s business, as conducted immediately prior to the Closing Date, all of which rights and
interests are licensed or franchised to or owned by the Company and, if so licensed or franchised,
are valid and uncontested other than the absence of such rights as would not have a material
adverse affect. The Company has received no notice of any and, to the knowledge of Seller or the
Company, there is no infringement or unlawful use of such intellectual property. The term
“Intellectual Property Right” means all intellectual and industrial property rights and other
proprietary rights, including rights to, arising out of, or based upon (i) inventions and patents
for inventions, including re-issue thereof and continuation and continuations in part, (ii)
copyrights, (iii) designs and industrial designs, (iv) trade marks and any word, symbol, icon, logo
or other indicia of origin adopted or used in connection with any product or service, (v) trade
secrets and confidential information, (vi) any other intangible expression of a kind which is
recognized in law or equity as having the attributes of property and is protected in law or equity
from unauthorized appropriation or exploitation.

14

 

5.22. [Intentionally blank.]

5.23. Permits and Licenses. Schedule 5.23 sets forth all material licenses, permits,
construction permits, approvals, concessions, franchises, certificates, consents, qualifications,
registrations, privileges and other authorizations and other rights, other than the Station
Licenses, from any Governmental Entity reasonably necessary to conduct the Station Business as
presently conducted (the “Permits”). The Company is the sole holder or solely holds rights to all
of the Permits. The Station Business has been conducted in all material respects in accordance
with all Permits.

5.24. Bank Accounts. Schedule 5.24 contains a true and complete list of all bank accounts
of the Company with a list of each person with signature authority over the funds in each such
account.

5.25. Corporate Records. All material corporate actions taken by the Company since its
inception have been duly and validly authorized by all necessary corporate action.

5.26. Bankruptcy. No insolvency proceedings of any character, including without
limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors,
voluntary or involuntary, affecting the Company are pending or, to Seller’s or the Company’s
knowledge, threatened, and the Company has not made any assignment for the benefit of creditors or
taken any action in contemplation of, or which would constitute the basis for, the institution of
such insolvency proceedings.

5.27. Business of the Company. The Station Business consists solely of, and is limited to,
the business and operation of the Station and matters incidental thereto.

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF SELLER INDIVIDUALLY

     Seller hereby makes the following representations and warranties for himself:

6.1. Binding Agreement. Seller has the full legal right and capacity to execute, deliver
and perform this Agreement and any documents contemplated hereby to which Seller is a party
according to their respective terms. This Agreement and any documents contemplated hereby to which
Seller is a party have been duly executed and delivered by Seller and constitute the legal, valid
and binding agreement of Seller enforceable in accordance with their terms, except to the extent
that (a) such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or
other similar Laws now or hereafter in effect relating to creditor’s rights generally and (b) the
remedy of specific performance or injunctive and other forms of equitable relief may be subject to
equitable defenses and to the discretion of the court before which any proceeding therefor may be
brought.

6.2. Ownership. Seller does not own, beneficially or of record, directly or indirectly,
any capital stock or other ownership or proprietary interest (other than publicly traded
securities) in any corporation, partnership, association, trust, joint venture, limited liability
company, or other entity that is in competition, does business, or is a party to a Contract, with
the Company.

15

 

6.3. Good Title Conveyed. Seller has complete and unrestricted power and the unqualified
right to sell, transfer, assign, convey and deliver to the Buyer, and upon consummation of the
transactions contemplated by this Agreement for the Initial Closing and the Closing, Buyer will
acquire, good, valid and marketable title to, respectively, the Initial Shares and the Closing
Shares owned beneficially and of record by Seller free and clear of all Liens, except for Permitted
Liens.

6.4. No Violation. Subject to the receipt of the FCC Consent, the execution, delivery and
performance by Seller of this Agreement and the documents contemplated hereby (with or without the
giving of notice, the lapse of time, or both), and the consummation by Seller of the transactions
contemplated hereby or thereby (a) do not require the consent of any third party; and (b) will not
conflict in any material respect with, result in a material breach of, or constitute a material
default under, any applicable Law of any person or Governmental Entity applicable to Seller or any
material contract or agreement to which Seller is a party or by which Seller may be bound or
affected. Seller is not a party to, nor is he bound by, and the Stock is not subject to, any
agreement or commitment that prohibits the execution and delivery by Seller of this Agreement or
the consummation of the transactions contemplated hereby.

6.5. Bankruptcy. No insolvency proceedings of any character, including without limitation,
bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or
involuntary, affecting Seller are pending or, to knowledge of Seller or the Company, threatened,
and Seller has not made any assignment for the benefit of creditors or taken any action in
contemplation of, or which would constitute the basis for, the institution of such insolvency
proceedings.

6.6. No other Representations or Warranties by Seller. Buyer agrees that, except for the
representations and warranties (including the schedules with respect thereto) made by Seller and
set forth in Articles 5 and 6, neither Seller nor any representative of Seller has made and shall
not be construed as having made to the Buyer or to any representative of Buyer, and neither Buyer
nor any representative of Buyer has relied upon, any other representation or warranty of any kind.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby makes the following representations and warranties to Seller:

7.1. Organization and Authority.

     (a) Buyer is validly existing and in good standing under the Laws of the State of Washington
and has all requisite corporate power and authority to own, lease and operate its properties and to
carry on its business as now being conducted and is duly qualified to do business in the State of
Washington.

     (b) Buyer has all requisite corporate power and authority to enter into this Agreement and to
consummate the transactions contemplated hereby. Buyer’s execution, delivery and performance of
this Agreement and the transactions contemplated hereby have been duly and

16

 

validly authorized by all necessary corporate action on behalf of Buyer and constitutes the
valid and binding obligation of Buyer, enforceable in accordance with its terms.

7.2. Qualification. Buyer is legally, financially and otherwise qualified to be the owner
of the Stock under the Communications Act and the rules, regulations and policies of the FCC,
including the applicable FCC multiple-ownership rules. Buyer is an “accredited investor” as
defined in Rule 501 of the Securities Act of 1933, as amended (the “Securities Act”). Buyer is
acquiring the Stock for its own account and not with a view to any subsequent distribution thereof.
Buyer acknowledges that (a) neither the Stock nor the sale of the Stock to Buyer under this
Agreement have been registered under the Securities Act or any applicable state securities Laws;
(b) that Seller is relying upon the representations of Buyer’s qualification under applicable
exemptions from registration requirements under the Securities Act; (c) the Stock may not be resold
or transferred unless a registration is made under the Securities Act or state Law or unless there
is an applicable exemption from registration available; (d) and that any certificate(s) evidencing
the Stock will bear legends setting forth such restrictions.

7.3. Absence of Conflicting Agreements or Required Consents. Except for the FCC Consent
contemplated in this Agreement, the execution and delivery of this Agreement shall not: (a)
violate, conflict with or result in any breach or default of any provision of the organizational
documents of Buyer, (b) violate any applicable Law; or (c) either alone or with the giving of
notice or the passage of time, violate the terms, conditions or provisions of, or constitute a
default or breach under, any agreement, instrument, license or permit to which Buyer is now
subject.

7.4. Litigation; Compliance with Law. There is no claim, action, suit, litigation,
inquiry, judicial or administrative proceeding, or arbitration pending or, to the knowledge of
Buyer, threatened against Buyer that would adversely affect Buyer’s ability to perform its
obligations pursuant to this Agreement. Buyer has committed no violation of any applicable law,
statute, regulation or ordinance or any other requirement of any Governmental Entity or court which
would have an adverse effect on Buyer or its ability to perform its obligations pursuant to this
Agreement.

7.5. Broker, Commission or Finder’s Fees. Neither Buyer nor any entity acting on behalf of
Buyer has agreed to pay a broker’s commission, finder’s fee or similar payment in connection with
this Agreement or any matter related hereto.

ARTICLE 8

COVENANTS OF SELLER

Seller covenants and agrees with Buyer that, pending the Closing, except as otherwise agreed to in
writing by Buyer and except as otherwise specified in the LMA:

8.1. Conduct of Station prior to the Closing Date. Seller, from and after the date hereof
through the Closing Date, shall cause the Company to:

     (a) Continue to use commercially reasonable efforts to maintain the Real Property Leases in
full force and effect;

17

 

     (b) Operate in the usual and ordinary course of business in accordance with past practices and
conduct the Station Business in all material respects in compliance with the terms of the Station
Licenses, Permits and all applicable Laws, including the Communications Laws (and including
compliance with all FCC deadlines relating to conversion to digital operations, timely pursuit of
digital television (“DTV”) channel election and construction of full-power DTV facilities prior to
the applicable Use-It-or-Lose-It Deadline);

     (c) use, repair, and, if necessary, replace any of Tangible Personal Property and keep books
of account, records and files, in each case, in a reasonable manner consistent with historical
practice, and maintain the Company’s assets, facilities and equipment, inventory of supplies,
parts and other materials in substantially their current condition, ordinary wear and tear
excepted;

     (d) maintain insurance or other arrangements in accordance with Section 5.6;

     (e) pay as and when the same shall become due and payable any amounts owed by the Company to
its employees who have performed services up to the time of Closing, for wages or commissions;

8.2. Purchase-Related Covenants. Except as otherwise permitted pursuant to the terms and
subject to the conditions of this Agreement, including Section 8.4, but subject in all events to
Section 10.4, (i) during the period from and after the date hereof through the earlier of the
Closing Date or the effective date of termination of this Agreement, and (ii) in the event of
termination of this Agreement, during the period from the effective date of termination of this
Agreement for so long as Buyer shall own any of the Stock (the “Post-Termination Period”), without
the prior written consent of Buyer (not to be unreasonably conditioned, delayed, or withheld), each
of Seller and the Company shall not, and Seller shall cause the Company to not:

     (a) (i) renew, amend, modify, extend or grant any special wavier under any Material Station
Contract other than in the ordinary course of business consistent with past practices, or (ii)
enter into any new Contract requiring in a single transaction or a series of related transactions,
payments by or on behalf of the Company in excess of Five Thousand Dollars ($5,000) per year;

     (b) other than in the ordinary course of business consistent with past practices, hire any
employee, increase the compensation of any employee or enter into, renew, amend or modify any
Contract of employment;

     (c) establish any Seller Plan, or establish, adopt or enter into any collective bargaining
agreement;

     (d) change any accounting principles used by the Company other than changes required by
applicable Law;

     (e) make any capital expenditure or commitment or addition to property, plant or equipment,
individually or in the aggregate, in excess of Five Thousand Dollars ($5,000);

18

 

     (f) agree or commit, whether in writing or otherwise, to take any of the actions specified in
the foregoing clauses; or

     (g) commit or suffer any of the acts described in the foregoing clauses.

This Section 8.2 shall survive the termination of this Agreement for any reason.

8.3. Investment-Related Covenants. Except as otherwise permitted pursuant to the terms and
subject to the conditions of this Agreement, including Section 8.4, but in all events subject to
Section 10.4, (i) during the period from and after the date hereof through the earlier of the
Closing Date or the effective date of termination of this Agreement, and (ii) in the event of
termination of this Agreement, during the Post-Termination Period, without the prior written
consent of Buyer, each of Seller and the Company shall not, and Seller shall cause the Company to
not:

     (a) encumber, mortgage, pledge, or subject to a Lien, claim, or encumbrance (other than
Permitted Liens) any of the Company’s assets or sell, assign, convey or transfer any of the
Company’s assets without replacing such asset with an asset of substantially the same value,
utility and quality;

     (b) apply to the FCC for any FCC license, construction permit, authorization or any
modification thereto that would restrict the Company’s present operations, or make any material
change in the Company’s buildings, leasehold improvements, or fixtures that is not in the ordinary
course of business;

     (c) make any assignment for the benefit of creditors or take any action in contemplation of,
or which would constitute the basis for, the institution of insolvency proceedings of any
character, including without limitation, bankruptcy, receivership, reorganization, composition or
arrangement with creditors, voluntary or involuntary;

     (d) enter into, renew, amend or modify any trade or barter agreement that is not to be fully
performed by the Closing Date;

     (e) take any actions that would result in the assets or the business of the Company being in
violation of any Station License, Permit or any applicable Law, nor omit to take any commercially
reasonable action that is necessary to prevent the assets or the Station Business from violating
the terms of any Station License, Permit or any applicable Law;

     (f) dispose of, or permit to lapse, any rights with respect to the use of any Intellectual
Property Rights;

     (g) create any Lien of any kind on any Real Property or other property or asset (whether
tangible or intangible) of the Company, other than (A) Permitted Liens, and (B) Liens that will be
released prior to the Closing;

     (h) make any material acquisition or material disposition (other than disposition of assets in
the ordinary course of business consistent with past practice) of assets or securities, including
by means of an asset sale, merger, consolidation or otherwise;

19

 

     (i) other than the LMA contemplated hereby, enter into any local marketing agreement, joint
sales agreement, shared services agreement or other similar contract in respect of the programming
or operations of the Station;

     (j) take, or fail to take, any other action which could reasonably be expected to result in a
breach or inaccuracy in any of the representations or warranties of Seller contained in this
Agreement;

     (k) (except as expressly provided in Section 5.1 of the LMA), enter into, renew, extend, amend
or terminate any Real Property Lease or Material Station Contract, including any employment
agreement constituting a Material Station Contract;

     (l) enter into any line of business other than the Station Business as conducted on the date
hereof;

     (m) sell, transfer, convey or assign the Stock or any interest therein, issue or redeem any
shares of capital stock or rights convertible into, or exchangeable or exercisable for capital
stock (or enter into any agreement with respect thereto);

     (n) create, incur, assume or permit to exist any indebtedness for borrowed money except for
indebtedness which is incurred or assumed in the ordinary course of business and which is
discharged in full as of the Closing Date or the effective date of termination of this Agreement;

     (o) make any loan to any third person or guarantee (or otherwise become responsible for) the
oblations or indebtedness of any other person;

     (p) declare, set aside or pay any dividends or make any other distributions on any shares of
capital stock, or restate, amend or modify its certificate of incorporation or bylaws, except for
dividends or distributions solely in respect of the payments made by Buyer pursuant to the LMA, and
Buyer acknowledges that Seller shall be entitled to receive one hundred percent (100%) of any such
dividends or distributions in respect of the payments made by Buyer under the LMA, notwithstanding
Buyer’s ownership of twenty-five percent (25%) of the Stock;

     (q) agree or commit, whether in writing or otherwise, to take any of the actions specified in
the foregoing clauses; or

     (r) commit or suffer any of the acts described in the foregoing clauses.

This Section 8.3 shall survive the termination of this Agreement for any reason.

8.4. Certain Post-Termination Operations. Notwithstanding anything to the contrary set
forth in Sections 8.2 or 8.3 hereof, in the event of termination of this Agreement pursuant to
Section 16.1(b), during the Post-Termination Period the Company shall have the right, and Seller
shall have the right to cause the Company, to:

20

 

     (a) purchase equipment, make related capital expenditures, and enter into programming
agreements as may be reasonably necessary to operate the Station in the ordinary course in the
absence of the LMA;

     (b) to incur indebtedness for borrowed money in an amount not to exceed Two Million Dollars
($2,000,000) in the aggregate in connection with funding the Station Business in the ordinary
course and permit Liens to be place against the Company’s asset or the Closing Shares in connection
with such indebtedness.

This Section 8.4 shall survive the termination of this Agreement for any reason.

8.5. Access. Seller shall give, or cause the Company to give, Buyer and Buyer’s
employees, engineers, environmental consultants, and other authorized representatives reasonable
access during normal business hours upon at least twenty-four (24) hours prior notice to Seller and
in accordance with the Real Property Leases, to the Station’s facilities, including the studio and
transmitter sites and the Tangible Personal Property in order that Buyer may have the opportunity
to make such investigation as Buyer deems appropriate, including environmental assessments and the
performance of surveys (at the sole cost and expense of Buyer). The rights of Buyer under this
Section shall not be exercised in such a manner as to interfere unreasonably with the business of
the Station.

8.6. Employee Records. Seller will cause the Company to provide Buyer, as Buyer may
reasonably request and only to the extent permitted by Law, with access to the Company’s records
with respect to position, salary and accrued vacation and sick leave for any Station personnel.

8.7. Other Consents. Seller will use commercially reasonable efforts to obtain all
consents, authorizations, or approvals, if any, required pursuant to the Material Station Contracts
or otherwise required for Seller’s consummation of the transactions contemplated by this Agreement.

8.8. No Inconsistent Action. Seller shall take no action which is inconsistent with his
obligations under this Agreement.

8.9. FCC Filings. Seller shall file, or cause the Company to file, on a current basis
until the Closing Date all applications, reports and documents required to be filed with the FCC
with respect to the Station. Copies of each such application, report and document filed between
the date hereof and the Closing Date shall be furnished to Buyer within ten (10) business days
after its filing.

8.10. Notification. Seller shall promptly notify Buyer in writing of (i) the initiation,
or credible threat of initiation, of any litigation, arbitration or administrative proceeding
against Seller or the Company which challenges the transactions contemplated by this Agreement, or
(ii) the failure of Seller, or any employee or agent of Seller or the Company to comply with or
satisfy in any material respect any covenant, condition or agreement to be complied with or be
satisfied by it hereunder.

21

 

8.11. Taxes. Seller shall pay or cause the Company to pay when due all property and all
other taxes relating to the Station, the Company and the Company’s assets and employees of the
Station and the Company required to be paid to city, county, state, federal and other governmental
entities through the Closing Date; provided, however, Seller or the Company may appeal or contest
any such tax. Seller shall, or shall cause the Company to, prepare, sign, and file with the
appropriate taxing authorities all Tax Returns required to be filed by or on behalf of the Company
for all periods ending on the Closing Date. Sellers shall, or shall cause the Company to, file
such Tax Returns on a timely basis and shall timely pay, or cause to be timely paid, in full all
Taxes shown to be due on such Tax Returns for all periods for which any Tax is due. Such Tax
Returns shall be prepared on a basis consistent with those prepared for prior tax years unless a
different treatment of any item is required by an intervening change in Law.

8.12. Non-Solicitation. As long as this Agreement is in effect and except as otherwise
provided in this Agreement, Seller shall not directly or indirectly solicit, entertain, negotiate
with any person or entity (other than a party hereto) regarding the acceptance of any proposal to
acquire the Company, the Station or any of the Company’s assets in whole or in part, including any
of the Stock.

8.13. Financial Information. Seller shall furnish Buyer within thirty (30) days after the
end of each month ending during the period terminating on the Closing Date, an unaudited balance
sheet and statement of income and expense for such month and such other financial information
prepared by Seller, as Buyer may reasonably request. This Section 7.12 shall survive termination
of this Agreement for so long as Buyer holds any of the Stock.

8.14. DTV Build-Out. Seller shall complete the digital build-out of the Station as
required by the FCC on or prior to the July 1, 2006 deadline with respect thereto. The new
build-out DTV transmitter has not been installed by the Company as of the date of this Agreement,
and is not, therefore, reflected in Schedule 5.8(i).

8.15. Modification of Certain Leases.

     (a) Seller covenants and agrees to use his, and to cause the Company to use its, and the
Company covenants and agrees to use its, best efforts and to otherwise cooperate with Buyer to
obtain an amendment to each Designated Lease (as hereinafter defined) providing the Company with a
right to terminate, terminate in part, or otherwise modify each such Designated Lease following the
Closing on terms and conditions reasonably satisfactory to Buyer.

     (b) The term “Designated Leases” shall refer to each of the following: (i) that certain Lease
Agreement, dated May 12, 1999, by and between American Tower Systems, L.P., as Lessor, and the
Company, as Lessee, for space on a multi-unit broadcasting tower and in the equipment building at
the tower site, located on West Tiger Mountain, in or near Issaquah, Washington, as amended by that
certain First Amendment to Lease Agreement, dated as of October 2002, by and between American
Tower, L.P. (successor to American Tower Systems, L.P.) and African American Broadcasting of
Bellevue, Inc., to add space for digital broadcasting equipment; and (ii) that certain Office
Building Lease, dated for reference purposes March 31, 2004, by and between Kilroy Realty, L.P., as
Landlord, and the Company, as Tenant, for space in the Kilroy Airport Center/Seatac South Tower
with a street address of 1800 Pacific Highway

22

 

South, Seattle, Washington, 98188, as amended by that certain Amendment No. 1 to Lease, dated
May 16, 2006, extending the term through May 31, 2011, and relocating the Premises to Suite 1103,
as further amended by that certain Amendment No. 2 to Lease, dated May 1, 2006, to provide for
additional equipment in and about the leased premises.

ARTICLE 9

COVENANTS OF BUYER

Buyer covenants and agrees with Seller that, pending the Closing, except as otherwise agreed to in
writing by Seller and except as otherwise specified in the LMA:

9.1. Notification. Buyer shall promptly notify Seller in writing of (i) the initiation, or
credible threat of initiation, of any litigation, arbitration or administrative proceeding against
Buyer which challenges the transactions contemplated by this Agreement, or (ii) the failure of
Buyer, or any employee or agent of Buyer to comply with or satisfy in any material respect any
covenant, condition or agreement to be complied with or be satisfied by it hereunder.

9.2. No Inconsistent Action. Buyer shall not take any action which is inconsistent with
its obligations under this Agreement.

ARTICLE 10

JOINT COVENANTS

Buyer and Seller covenant and agree that, pending the Closing, except as mutually otherwise agreed
to in writing by the parties and except as otherwise specified in the LMA:

10.1. Confidentiality. Both of the parties hereto will hold in confidence, and will cause
their respective directors, officers, employees, accountants, counsel, financial advisors and other
representatives and affiliates to hold in confidence, all non-public information received from the
other party hereto (collectively, “Confidential Information “); provided, however, that the term
Confidential Information does not include any information that (a) at the time of disclosure or
thereafter is generally available to and known by the public (other than as a result of a
disclosure directly or indirectly by the party hereto which received such information (the
“Recipient”)), (b) was available to the Recipient from a source other than the other parties hereto
or (c) has been independently acquired or developed by the Recipient without violating any of its
obligations under this Agreement. The obligation to keep Confidential Information confidential
shall not apply to any information that is required to be disclosed pursuant to any court action or
any proceeding before a Governmental Entity. In the event this Agreement is terminated for any
reason, each party hereto, upon the request of the party hereto, shall promptly return to the
requesting party all copies of Confidential Information in its possession and shall destroy all
analysis, studies and documents prepared by it which contain any Confidential Information.

10.2. Cooperation. Buyer and Seller shall cooperate fully with one another in taking any
actions, including actions to obtain the required consent of any governmental instrumentality or
any third party necessary or helpful to accomplish the transactions contemplated by this Agreement.
This provision shall survive the Closing.

23

 

10.3. Public Announcements. Prior to the Closing, neither Buyer nor Seller shall issue any
press release or make any public disclosure with respect to the transactions contemplated by this
Agreement without the prior written approval of the other party, except (a) Buyer and Seller may
make any disclosure as may be required by applicable Law or by obligations pursuant to any listing
agreement with any securities exchange or any stock exchange regulations; and (b) Buyer and Seller
may each continue such communications with employees, customers, suppliers, franchises, lenders,
lessors, shareholders, and other particular groups as may be legally required or necessary or
appropriate and not inconsistent with the best interests of the other party or the prompt
consummation of the transactions contemplated herein.

10.4. No Premature Assumption of Control. Nothing contained in this Agreement shall give
Buyer any right to, directly or indirectly, control, supervise or direct, or attempt to control,
supervise or direct, the programming, operations, or any other matter relating to the Station prior
to the Closing Date, and the Company shall have complete control and supervision of the
programming, operations, policies and all other matters relating to the Station up to the time of
the Closing.

ARTICLE 11

CONDITIONS OF CLOSING BY BUYER

The obligations of Buyer hereunder are, at its option (other than with respect to the condition
that the FCC Consent shall have been issued, which condition may not be waived), subject to
satisfaction at or prior to the Closing Date of all of the following conditions:

11.1. Representations and Warranties. All representations and warranties of Seller made in
this Agreement or in any exhibit, schedule or document delivered pursuant hereto (a) if qualified
by materiality, shall be true and complete in all respects and (b) if not so qualified, shall be
true and complete in all material respects, in all events as of the date hereof and on and as of
the Closing Date as if made on and as of that date, except for changes expressly permitted or
contemplated by the terms of this Agreement and except those given as of a specified date.

11.2. Compliance with Agreement. All of the terms, covenants and conditions to be complied
with and performed by Seller on or prior to the Closing Date shall have been complied with or
performed in all material respects;

11.3. Third Party Consents and Approvals. Seller shall have obtained the landlord’s or any
other necessary third-party consent under the Real Property Leases to transfer of control of the
Company to Buyer (if such consent is required under the terms of such Real Property Leases).

11.4. Governmental Consents.

     (a) Except as otherwise provided by Article 3, the FCC Consent shall have been obtained and
shall be effective without any conditions that are materially adverse to Buyer, and no court or
governmental order prohibiting Closing shall be in effect;

     (b) All other material authorizations, consents, approvals, and clearances of any Governmental
Entity required to permit the consummation of the transactions contemplated by this Agreement shall
have been obtained;

24

 

     (c) No injunction, order, stipulation, settlement, writ, decree or judgment of any court,
agency or other Governmental Entity shall have been rendered against Seller or Buyer which would
render it unlawful, as of the Closing Date, to effect the transactions contemplated by this
Agreement in accordance with its terms;

     (d) No Law shall have been enacted, entered, promulgated or enforced by any Governmental
Entity that prohibits the consummation of all or any part of the transactions contemplated by this
Agreement, and no action or proceeding shall be pending or threatened by any Governmental Entity or
other person seeking any such order or decree or seeking to recover any damages or obtain other
relief as a result of the consummation of such transactions.

11.5. Closing Deliveries. Seller shall have delivered or caused to be delivered to Buyer,
on the Closing Date, the documents specified in Section 12.1 below.

11.6. Inspection of Certain Purchased Assets. Seller shall have permitted Buyer and its
employees, agents and contractors to enter onto the Real Property no later than three (3) Business
Days prior to the Closing Date for the purpose of walking through and inspecting the Real Property
and the Tangible Personal Property, and the results of such walk-through and inspection (including
the condition of such assets) shall be reasonably acceptable to Buyer, in accordance with the
representations and warranties of Seller and the Company contained in this Agreement.

11.7. Lien Payoff Letters. Buyer shall have received from Seller or the Company, payoff
letters, in a form and containing terms reasonably acceptable to Buyer, setting forth the amounts
necessary for payment in full of the debts associated with the Closing Liens (such amount, in the
aggregate, the “Payoff Amount”), and providing for release of such Closing Liens by the lienholders
thereto upon payment of the applicable portion of the Payoff Amount (the “Payoff Letters”);
provided, however, that in no event shall the Payoff Amount be greater than the Closing Amount (as
defined in Section 13.2(a)).

11.8. Other Documents. Buyer shall have received such other documents, certificates or
instruments as it may reasonably request, and all actions and proceedings hereunder and all
documents and other papers required to be delivered by Seller hereunder or in connection with the
consummation of the transactions contemplated hereby, and all other related matters, shall be
reasonably acceptable to Buyer as to their form and substance.

ARTICLE 12

CONDITIONS OF CLOSING BY SELLER

The obligations of Seller hereunder are, at its option (other than with respect to the condition
that the FCC Consent shall have been issued, which condition may not be waived), subject to
satisfaction at or prior to the Closing Date of all of the following conditions:

12.1. Representations, Warranties and Covenants. All representations and warranties of
Buyer made in this Agreement or in any exhibit, schedule or document delivered pursuant hereto (a)
if qualified by materiality, shall be true and complete in all respects and (b) if not so
qualified, shall be true and complete in all material respects, in all events as of the date hereof
and on and as of the Closing Date as if made on and as of that date, except for changes expressly
permitted or contemplated by the terms of this Agreement and except those given as of a specified
date;

25

 

12.2. Compliance with Agreement. All the terms, covenants, and conditions to be complied
with and performed by Buyer on or prior to the Closing Date shall have been complied with or
performed in all material respects;

12.3. Governmental Approval.

     (a) The FCC Consent shall have been obtained and shall be effective and no court or
governmental order prohibiting Closing shall be in effect; and

     (b) All other material authorizations, consents, approvals, and clearances of any Governmental
Entity required to permit the consummation of the transactions contemplated by this Agreement shall
have been obtained; and

     (c) No injunction, order, stipulation, settlement, decree, judgment, or writ of any court,
agency or other Governmental Entity shall have been rendered against Buyer or Seller which would
render it unlawful, as of the Closing Date, to effect the transactions contemplated by this
Agreement in accordance with its terms.

12.4. Closing Documents. Buyer shall have delivered or caused to be delivered to Seller,
on the Closing Date, the documents specified in Section 12.2 below.

ARTICLE 13

DELIVERIES AT THE CLOSING

13.1. Items to be Delivered by Seller. At the Closing, Seller will deliver to Buyer the
following, at the expense of Seller and in proper form for recording when appropriate:

     (a) The certificate(s) representing the Closing Shares accompanied by stock power(s) duly
endorsed in blank, sufficient to convey and transfer to Buyer title to the Closing Shares;

     (b) A certificate, dated as of the Closing Date, executed by an authorized officer of Seller,
certifying that the conditions set forth in Article 10 have been fulfilled;

     (c) The Company’s stock book and records, and a copy of the bylaws and articles of
incorporation of the Company, certified by an officer of the Company as being true and correct, in
effect on the Closing Date;

     (d) A list of the Company’s bank or deposit accounts and the names of all individuals having
signature authority over such accounts;

     (e) Duly executed resignation and releases of each of the officer(s) and director(s) of the
Company;

     (f) a certificate of the Secretary of the State of Washington as of a date no earlier than
five (5) days prior to the Closing Date regarding the due incorporation and good standing of the
Company;

26

 

     (g) Opinions of counsel issued by the Company’s corporate counsel, in substantially the form
set forth in Exhibit A, and communications counsel, in substantially the form set forth in Exhibit
B;

     (h) a certificate of the Secretary of the Company, dated as of the Closing Date, certifying a
copy of the bylaws of the Company in effect as of such date;

     (i) a certificate, dated as of the Closing Date, executed by Seller, certifying that the
conditions set forth in Section 3.1(a) have been fulfilled;

     (j) Such additional information and materials as Buyer shall reasonably request.

13.2. Items to be Delivered by Buyer. At the Closing, Buyer will deliver to Seller, at the
expense of Buyer:

     (a) A wire transfer in immediately available funds of the amount specified in Section 2.2(b)
(the “Closing Amount”), subject to any adjustments pursuant to the terms and subject to the
conditions of this Agreement, provided, that Buyer shall wire (i) the Payoff Amount pursuant to the
Payoff Letters and wire instructions provided in connection therewith, and (ii) to Seller an amount
equal to the Closing Amount less the Payoff Amount;

     (b) Certified resolutions of the Board of Directors or similar body of Buyer approving the
execution and delivery of this Agreement and each of the other documents delivered by Buyer
pursuant hereto and authorizing the consummation of the transactions contemplated hereby and
thereby;

     (c) A certificate, dated as of the Closing Date, executed by an authorized officer of Buyer,
certifying that the conditions set forth in Article 11 have been fulfilled; and

     (d) Such additional information and materials as Seller shall reasonably request.

ARTICLE 14

TRANSFER TAXES: FEES AND EXPENSES

14.1. Expenses. Each party to this Agreement shall be solely responsible for all costs and
expenses incurred by it in connection with the negotiation, preparation and performance of and
compliance with the terms of this Agreement.

14.2. Transfer Taxes and Similar Charges. Any sales or transfer taxes incurred as a result
of the closing of the transactions provided for in this Agreement shall be paid by Buyer.

14.3. FCC Filing Fee. The filing fee for the application seeking the FCC Consent shall be
borne one half by Buyer and one half by Seller.

27

 

ARTICLE 15

SURVIVAL; INDEMNIFICATION

15.1. Survival. The representations and warranties in this Agreement shall survive Closing
for a period of eighteen (18) months from the Closing Date whereupon they shall expire and be of no
further force or effect, except for claims under this Article 14 that relate to Damages (as defined
in Section 14.2) for which written notice is given by the indemnified party to the indemnifying
party prior to the expiration of such 18-month period, which shall survive until resolved. The
covenants of the parties hereto shall survive indefinitely, unless otherwise expressly provided
herein that any particular covenant is to be performed by the applicable party during a specified
period of time. If a claim for indemnification is timely made, it may continue to be asserted
beyond the corresponding date of termination of the representation or warranty claimed to be
breached.

15.2. Indemnification.

     (a) From and after the Closing, Seller shall defend, indemnify and hold Buyer harmless from
and against any and all losses, costs, damages, liabilities and expenses, including reasonable
attorneys’ fees and expenses (“Damages”) incurred by Buyer arising out of or resulting from: (i)
any breach of any representation or warranty of the Seller, or (ii) any breach or default by Seller
of any covenant or agreement, under this Agreement or any certificates, schedules or other
instrument or agreement or obligation of Seller contained in or made pursuant to this Agreement.

     (b) From and after the Closing, Buyer shall defend, indemnify and hold harmless Seller from
and against any and all Damages incurred by Seller arising out of or resulting from: (i) any breach
of any representation or warranty of Buyer hereunder; or (ii) any breach or default by Buyer of
any covenant or agreement under this Agreement.

     (c) Notwithstanding anything to the contrary contained herein, no party shall have any
liability to the other under this Article 14 until, and only to the extent that, such party’s
aggregate Damages exceed Ten Thousand Dollars ($10,000.00), and (ii) the maximum liability of a
party for Damages shall be limited to One Million Two Hundred Fifty Thousand Dollars ($1,250,000).

15.3. Procedures. The indemnified party shall give prompt written notice to the
indemnifying party of any demand, suit, claim or assertion of liability by third parties or other
circumstances that could give rise to an indemnification obligation hereunder against the
indemnifying party (a “Claim”), but a failure to give such notice or delaying such notice shall not
affect the indemnified party’s right to indemnification and the indemnifying party’s obligation to
indemnify as set forth in this Agreement, except to the extent the indemnifying party’s ability to
remedy, contest, defend or settle with respect to such Claim is thereby prejudiced. The written
notice shall include information explaining the basis for such Claim in reasonable detail. The
obligations and liabilities of the parties with respect to any Claim shall be subject to the
following terms and conditions:

28

 

     (a) The indemnifying party shall have the right to undertake, by counsel or other
representatives of its own choosing, the defense or opposition to such Claim; provided, however,
that the indemnified party shall have the right to employ, at its sole cost and expense, counsel to
represent it, provided further that if, in the opinion of the indemnified party, it is advisable
for the indemnified party to be represented by separate counsel due to actual or potential
conflicts of interest, then in that event, the fees and expenses of such separate counsel shall be
paid by the indemnifying party.

     (b) Subject to paragraph (a) above, in the event that the indemnifying party shall elect not
to undertake such defense or opposition, or, within twenty (20) days after written notice of any
such Claim from the indemnified party, the indemnifying party shall fail to undertake to defend or
oppose, the indemnified party (upon further written notice to the indemnifying party) shall have
the right to undertake the defense, opposition, compromise or settlement of such Claim, by counsel
or other representatives of its own choosing, on behalf of and for the account and risk of the
indemnifying party (subject to the right of the indemnifying party to assume defense of or
opposition to such Claim at any time prior to settlement, compromise or final determination
thereof);

     (c) Anything herein to the contrary notwithstanding: (i) the indemnified party shall have the
right, at its own cost and expense, to participate in the defense, opposition, compromise or
settlement of the Claim; (ii) the indemnifying party shall not, without the indemnified party’s
written consent, settle or compromise any Claim or consent to entry of any judgment which does not
include as an unconditional term thereof the giving by the claimant or the plaintiff to the
indemnified party of a release from all liability in respect of such Claim; and (iii) in the event
that the indemnifying party undertakes defense of or opposition to any Claim, the indemnified
party, by counsel or other representative of its own choosing and at its sole cost and expense,
shall have the right to consult with the indemnifying party and its counsel or other
representatives concerning such Claim and the indemnifying party and the indemnified party and
their respective counsel or other representatives shall cooperate in good faith with respect to
such Claim; and

     (d) All Claims that are not Disputed Claims shall be paid by the indemnifying party within
thirty (30) days after receiving notice of the Claim. “Disputed Claims” shall mean claims for
Damages by an indemnified party which the indemnifying party objects to in writing within thirty
(30) days after receiving notice of the Claim. In the event there is a Disputed Claim with respect
to any Damages, the indemnifying party shall be required to pay the indemnified party the amount of
such Damages for which the indemnifying party has, pursuant to a final determination, been found
liable within ten (10) days after there is a final determination with respect to such Disputed
Claim. A final determination of a Disputed Claim shall be (i) a judgment of any court determining
the validity of a Disputed Claim, if no appeal is pending from such judgment and if the time to
appeal therefrom has elapsed; (ii) an award of any arbitration determining the validity of such
Disputed Claim, if there is not pending any motion to set aside such award and if the time within
which to move to set aside such award has elapsed; (iii) a written termination of the dispute with
respect to such Claim signed by the parties thereto or their attorneys; (iv) a written
acknowledgment of the indemnifying party that it no longer disputes the validity of such Claim; or
(v) such other evidence of final determination of a Disputed Claim as shall be acceptable to the
parties. No undertaking of defense or opposition to a Claim shall be

29

 

construed as an acknowledgment by such party that it is liable to the party claiming
indemnification with respect to the Claim at issue or other similar Claims.

15.4. Exclusive Remedies. From and after the Closing, Buyer’s and Seller’s rights to
indemnification under this Article 14 are with respect to any Claim shall be their sole and
exclusive remedy for money damages under and with respect to this Agreement or the transactions
contemplated hereby. Neither party shall be entitled to pursue, and hereby expressly waives, any
and all rights that might otherwise be available at law or in equity, including under federal or
state securities Laws, exclusive of rights to or with respect to equitable relief, including
injunctive relief or rights to specific performance.

ARTICLE 16

TERMINATION

16.1. Termination. This Agreement may be terminated at any time prior to Closing as
follows:

     (a) by mutual written consent of Seller and Buyer;

     (b) by written notice of Seller to Buyer, if Buyer (i) does not satisfy the conditions or
perform the obligations to be satisfied or performed by Buyer on the Closing Date; or (ii)
otherwise (x) breaches in any respect any of Buyer’s representations or warranties that are
qualified by materiality; (y) breaches in any material respect any of Buyer’s representation or
warranties that are not qualified by materiality; or (z) defaults in any respect in the performance
of any of Buyer’s covenants or agreements herein contained, and such breach or default is not cured
within the Cure Period (defined below);

     (c) by written notice of Buyer to Seller, if Seller (i) does not satisfy the conditions or
perform the obligations to be satisfied or performed by Seller on the Closing Date; or (ii)
otherwise (x) breaches in any respect any of Seller’s representations or warranties that are
qualified by materiality; (y) breaches in any material respect any of Seller’s representation or
warranties that are not qualified by materiality; or (z) defaults in any respect in the performance
of any of Seller’s covenants or agreements herein contained, and such breach or default is not
cured within the Cure Period (defined below);

     (d) by written notice of either party to the other if the FCC denies the FCC Application by
Final Order;

     (e) by written notice of Buyer to Seller if the FCC Consent includes a condition that is
materially adverse to Buyer;

     (f) by written notice of Buyer to Seller under the circumstances specified in Section 17.2(b)
dealing with Risk of Loss; and

     (g) by written notice of either party to the other if the Closing shall not have been
consummated on or before the date twelve (12) months after the date of this Agreement and the party
seeking to terminate this Agreement is not then in breach of this Agreement.

30

 

16.2. Cure Period. The term “Cure Period” as used herein means a period commencing the
date Buyer or Seller receives from the other written notice of breach or default hereunder and
continuing for a period of thirty (30) days thereafter; provided, however, that if the breach or
default cannot reasonably be cured within such period, but can be cured before the Closing Date,
and if diligent efforts to cure promptly commence, then the Cure Period shall continue as long as
such diligent efforts to cure continue, but not beyond the Closing Date.

16.3. Specific Performance. Seller agrees that the Stock is unique and cannot be readily
obtained on the open market and that Buyer will be irreparably injured if this Agreement is not
specifically enforced. Therefore, in the event that Buyer institutes any action specifically to
enforce Seller’s performance under this Agreement, Seller agrees to waive the defense that Buyer
has an adequate remedy at law and to interpose no opposition, legal or otherwise, as to the
propriety of specific performance as a remedy.

16.4. Post-Termination Drag-Along Rights of Seller.

     (a) In the event that this Agreement is terminated by Seller pursuant to the terms and subject
to the conditions of Section 16.1(b) and:

          (i) In the event that Seller shall Transfer (as hereinafter defined) or agree to Transfer the
Closing Shares to a third party (the “New Transferee”) during the period commencing on the
effective date of termination of this Agreement pursuant to the terms and subject to the conditions
of Section 16.1(b) and ending on the first anniversary thereof, Seller shall have the right to
require Buyer to sell all of the Initial Shares to such New Transferee pursuant to the terms and
subject to the conditions of this paragraph (i) and paragraph (b) below, provided that that
aggregate purchase price paid to Buyer for the Initial Shares shall be an amount equal to Four
Million Dollars ($4,000,000); or

          (ii) In the event that Seller shall Transfer (as hereinafter defined) or agree to Transfer the
Closing Shares to a New Transferee at any time following the first anniversary of the effective
date of termination of this Agreement pursuant to the terms and subject to the conditions of
Section 16.1(b), Seller shall have the right to require Buyer to sell all of the Initial Shares to
such New Transferee pursuant to the terms and subject to the conditions of this paragraph (i) and
paragraph (b) below.

     (b) The right of Seller provided under Section 16.4(a) hereof shall be exercisable by Seller
by delivering written notice of the exercise thereof (a “Drag-Along Notice”) to Buyer, which
Drag-Along Notice shall set forth all material terms of the proposed Transfer. Pursuant to the
terms and subject to the conditions of this Section 16.4, Buyer shall be obligated to sell to the
New Transferee all of the Initial Shares for the same price per share as paid to Seller by such New
Transferee, except as otherwise provided by Section 16.4(a)(i), and otherwise on the terms and
conditions specified in the Drag-Along Notice, at a closing to be held on the date of the closing
of the Transfer of the Closing Shares by Seller to the New Transferee.

     (c) For purposes hereof, the term “Transfer” means any direct or indirect sale, transfer,
exchange, assignment, pledge, encumbrance of any kind, disposition, hypothecation, gift or any
contract for any of the foregoing or any voting trust or other agreement or

31

 

arrangement respecting voting rights or any beneficial interest in a share of Stock, but not
including a pledge or encumbrance permitted under Section 8.4(b) above.

     (d) This Section 16.4 shall survive termination of this Agreement in accordance with its
terms.

16.5. Effect of Termination; Survival. Sections 8.2, 8.3, 8.4, and 16.4, shall survive in
accordance with their terms.

ARTICLE 17

MISCELLANEOUS PROVISIONS

17.1. Casualty Loss. In the event any non material loss or damage of the Company’s assets
exists on the Closing Date, the parties shall consummate the Closing and after Closing the parties
shall cooperate to repair or replace (as appropriate under the circumstances) the lost or damaged
items at Seller’s reasonable expense.

17.2. Risk of Loss. The risk of loss or damage to the Company’s assets shall be upon
Seller at all times prior to Closing. In the event of such loss or damage, Seller will promptly
notify Buyer and may cause the Company to repair, replace or restore the assets to their former
condition. If material damage has occurred that precludes the operation of either of the Station
within the terms of its license and the Company’s Assets have not been repaired or restored prior
to the Closing Date, Buyer may, at its option:

     (a) elect to consummate the Closing and accept the Company’s assets in their then-current
condition, in which event Buyer shall be entitled to receive any proceeds of insurance received by
Seller or the Company and attributable to damage to the Company’s assets, in which case Seller will
have no further obligation to repair, replace or restore the damaged property; or

     (b) elect to postpone the Closing Date for a period of up to forty-five (45) days, with prior
consent of the Commission if necessary, to permit Seller, at his option, to cause the Company to
make such repairs, replacements, or restoration as are required to restore the assets to the
equivalent of its former condition. If after the expiration of the extension period the assets
have not been repaired, replaced or restored in a manner sufficient to permit the Station to resume
operation within the terms of its license, Buyer may terminate this Agreement. If the parties
disagree whether the assets have been adequately repaired, replaced or restored, the matter will be
referred to a mutually acceptable qualified consulting communications engineer, who shall be a
member of the Association of Federal Communications Consulting Engineers, whose decision will be
final, and whose fees and expenses will be split equally by the parties.

17.3. Further Assurances. After the Closing, each party shall from time to time, at the
request of and without further cost or expense to the other, execute and deliver such other
instruments and take such other actions as may reasonably be requested in order to more effectively
consummate the transactions contemplated hereby to exchange assets and assume obligations as
contemplated by this Agreement.

17.4. Assignment. Neither party may assign this Agreement without the prior written consent
of the other party hereto, provided, however, that Buyer may assign this Agreement upon prior

32

 

written notice to (but without having first received consent of) Seller if such assignment is to an
entity controlled by Buyer’s owners at the time this Agreement is signed and such assignment does
not cause delay in processing the FCC Application or delay the FCC Consent (apart from incidental
delay in connection with the filing of an amendment to the FCC Application relating to such
assignment). Notwithstanding the foregoing, no assignment of this Agreement shall relieve any party
of its obligations hereunder. With respect to any permitted assignment, the parties shall take all
such actions as are reasonably necessary to effectuate such assignment, including but not limited
to cooperating in any appropriate filings with the FCC or other governmental authorities. All
covenants, agreements, statements, representations, warranties and indemnities in this Agreement by
and on behalf of any of the parties hereto shall bind and inure to the benefit of the respective
successors and permitted assigns of the parties hereto.

17.5. Amendments. No amendment, waiver of compliance with any provision or condition
hereof or consent pursuant to this Agreement shall be effective unless evidenced by an instrument
in writing signed by the party against whom enforcement of any waiver, amendment, change, extension
or discharge is sought.

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

17.7. Governing Law and Venue. The construction and performance of this Agreement shall be
governed by the Laws of the State of Washington without giving effect to the choice of law
provisions thereof.

17.8. Notices. Any notice, demand or request required or permitted to be given under the
provisions of this Agreement shall be in writing, and shall be deemed to have been received on the
date of personal delivery, on the third day after deposit in the U.S. mail if mailed by registered
or certified mail, postage prepaid and return receipt requested, on the day after delivery to a
nationally recognized overnight courier service if sent by an overnight delivery service for next
morning delivery, and shall be addressed as follows (or to such other address as any party may
request by written notice):

     (a) If to Seller:

Mr. Christopher J. Racine

875 Waimanu Street, Suite 110

Honolulu, HI 96813

With a copy (that shall not constitute notice) to:

Harry F. Cole, Esq.

Fletcher, Heald & Hildreth PLC

1300 North 17th Street, 11th Floor

Arlington, VA 22209

     (b) If to Buyer

33

 

Fisher Communications, Inc.

100 Fourth Ave. N., Suite 510

Seattle, WA 98109

Attention: Chief Executive Officer

With a copy (that shall not constitute notice) to:

Eric D. Greenberg, Esq.

Covington & Burling

1201 Pennsylvania Ave., N.W.

Washington, DC 20004-2401

17.9. Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed an original and all of which together will constitute one and the same
instrument. Signatures on this Agreement transmitted by facsimile or electronic transmission shall
be deemed to be original signatures for all purposes of this Agreement.

17.10. No Third Party Beneficiaries. Nothing herein expressed or implied is intended or
shall be construed to confer upon or give to any person or entity other than the parties hereto and
their successors or permitted assigns, any rights or remedies under or by reason of this Agreement.

17.11. Severability. The parties agree that if one or more provisions contained in this
Agreement shall be deemed or held to be invalid, illegal or unenforceable in any respect under any
applicable Law, this Agreement shall be construed with the invalid, illegal or unenforceable
provision deleted, and the validity, legality and enforceability of the remaining provisions
contained herein shall not be affected or impaired thereby.

17.12. Entire Agreement. This Agreement, including its Schedules and Exhibits, together
with the LMA, embody the entire agreement and understanding of the parties hereto and thereto and
supersede any and all other prior agreements, arrangements and understandings relating to the
matters provided for herein.

17.13. Interpretation. In this Agreement, the singular includes the plural and the plural
the singular; the word “it” shall include all pronouns connoting other genders, as the context
requires; the words “including,” “includes” and “include” shall be deemed to be followed by the
words “without limitation;” references to Sections or Exhibits are to those of this Agreement
unless otherwise indicated; references to laws and regulations, unless otherwise specified, shall
be deemed to include all corresponding provisions of subsequent or superseding laws and regulations
affecting the same; references to agreements and other contractual instruments, unless otherwise
specified, shall be deemed to include all subsequent amendments and other modifications to such
instruments in accordance with the terms thereof; “or” and “any” are not exclusive and use of the
word “or” shall be deemed to mean “and/or” and shall be deemed to refer to the words both preceding
and following the word “or” or either of such words; and “days” refers to calendar days unless
otherwise indicated.

[The remainder of this page has been intentionally left blank.]

34

 

[Signature page of Seller and the Company to Stock Purchase Agreement.]

     IN WITNESS WHEREOF, each of the parties has caused this Stock Purchase Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Christopher J. Racine	 
	 	 	        Christopher J. Racine, Individually 	 
	 	 	 	 
	 
	 	AFRICAN-AMERICAN BROADCASTING OF 

BELLEVUE, INC.

 	 
	 	By:  	/s/ Christopher J. Racine	 
	 	 	        Christopher J. Racine, President 	 
	 	 	 	 

35

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	FISHER BROADCASTING COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Colleen B. Brown	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Colleen B. Brown	 	 
	 

	 	Title:	 	President & CEO	 	 

36

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]