Document:

<PAGE>   1
                                                                     EXHIBIT 4.6

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

                  PAXSON COMMUNICATIONS CORPORATION, as Issuer,

             the SUBSIDIARY GUARANTORS named herein, as Guarantors,

                                       and

                        THE BANK OF NEW YORK, as Trustee

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

                                    INDENTURE

                            Dated as of July 12, 2001

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

                                  $200,000,000

                   10 3/4% Senior Subordinated Notes due 2008

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

<PAGE>   2

                              CROSS-REFERENCE TABLE
<TABLE>
<CAPTION>

           TIA                                                                INDENTURE
         SECTION                                                               SECTION
         -------                                                              ---------
<S>                                                                               <C>
         310(a)(1).......................................................         7.10
         (a)(2)..........................................................         7.10
         (a)(3)..........................................................         N.A.
         (a)(4)..........................................................         N.A.
         (b).............................................................         7.08; 7.10; 12.02
         (b)(1)..........................................................         7.10
         (b)(9)..........................................................         7.10
         (c).............................................................         N.A.

         311(a)..........................................................         7.11
         (b).............................................................         7.11
         (c).............................................................         N.A.

         312(a)..........................................................         2.05
         (b).............................................................         12.03
         (c).............................................................         12.03

         313(a)..........................................................         7.06
         (b)(1)..........................................................         7.06
         (b)(2)..........................................................         7.06
         (c).............................................................         12.02
         (d).............................................................         7.06

         314(a)..........................................................         4.02; 4.04; 12.02
         (b).............................................................         N.A.
         (c)(1)..........................................................         12.04; 12.05
         (c)(2)..........................................................         12.04; 12.05
         (c)(3)..........................................................         N.A.
         (d).............................................................         N.A.
         (e).............................................................         12.05
         (f).............................................................         N.A.

</TABLE>

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<PAGE>   3

<TABLE>
<CAPTION>

           TIA                                                                INDENTURE
         SECTION                                                               SECTION
         -------                                                              ---------
<S>                                                                               <C>
         315(a)..........................................................         7.01; 7.02
         (b).............................................................         7.05; 12.02
         (c).............................................................         7.01
         (d).............................................................         6.05; 7.01; 7.02
         (e).............................................................         6.11

         316(a)(last sentence)...........................................         12.06
         (a)(1)(A).......................................................         6.05
         (a)(1)(B).......................................................         6.04
         (a)(2)..........................................................         8.02
         (b).............................................................         6.07
         (c).............................................................         8.04

         317(a)(1).......................................................         6.08
         (a)(2)..........................................................         6.09
         (b).............................................................         7.12

         318(a)..........................................................         12.01

</TABLE>

         N.A.     means Not Applicable

         Note:    This Cross-Reference Table shall not, for any purpose, be
                  deemed to be a part of the Indenture

                                       ii
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                                TABLE OF CONTENTS

<TABLE>
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                                                                                                      PAGE
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<S>              <C>                                                                                   <C>
ARTICLE 1            DEFINITIONS AND INCORPORATION BY REFERENCE.........................................1

         Section 1.01.      Definitions.................................................................1

         Section 1.02.      Other Definitions..........................................................33

         Section 1.03.      Incorporation by Reference of Trust Indenture Act..........................34

         Section 1.04.      Rules of Construction......................................................34

ARTICLE 2            THE NOTES.........................................................................35

         Section 2.01.      Form and Dating............................................................35

         Section 2.02.      Execution and Authentication...............................................36

         Section 2.03.      Registrar and Paying Agent.................................................37

         Section 2.04.      Paying Agent to Hold Money in Trust........................................37

         Section 2.05.      Holder Lists...............................................................37

         Section 2.06.      Transfer and Exchange......................................................38

         Section 2.07.      Replacement Notes..........................................................52

         Section 2.08.      Outstanding Notes..........................................................52

         Section 2.09.      Temporary Notes............................................................52

         Section 2.10.      Cancellation...............................................................53

         Section 2.11.      Defaulted Interest.........................................................53

         Section 2.12.      Deposit of Moneys..........................................................53

         Section 2.13.      CUSIP Number...............................................................53

         Section 2.14.      Special Interest...........................................................54

ARTICLE 3            REDEMPTION........................................................................54

         Section 3.01.      Notices to Trustee.........................................................54

         Section 3.02.      Selection by Trustee of Notes to Be Redeemed...............................54

         Section 3.03.      Notice of Redemption.......................................................55

         Section 3.04.      Effect of Notice of Redemption.............................................55

         Section 3.05.      Deposit of Redemption Price................................................56

         Section 3.06.      Notes Redeemed in Part.....................................................56

ARTICLE 4            COVENANTS.........................................................................56

         Section 4.01.      Payment of Notes...........................................................56

         Section 4.02.      SEC Reports................................................................57
</TABLE>

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                                TABLE OF CONTENTS

                                   (CONTINUED)

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                                                                                                      PAGE
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<S>              <C>                                                                                   <C>
         Section 4.03.      Waiver of Stay, Extension or Usury Laws....................................57

         Section 4.04.      Compliance Certificate.....................................................58

         Section 4.05.      Taxes......................................................................58

         Section 4.06.      Limitation on Debt.........................................................59

         Section 4.07.      Limitation on Issuance or Sale of Capital Stock of
                            Restricted Subsidiaries....................................................60

         Section 4.08.      Limitation on Restricted Payments..........................................60

         Section 4.09.      Limitation on Liens........................................................63

         Section 4.10.      Limitation on Asset Sales and Spectrum Sales...............................63

         Section 4.11.      Limitation on Transactions with Affiliates.................................67

         Section 4.12.      Limitation on Layered Debt.................................................68

         Section 4.13.      Designation of Restricted and Unrestricted Subsidiaries....................68

         Section 4.14.      Future Subsidiary Guarantors...............................................70

         Section 4.15.      Limitation on Restrictions on Distributions from Restricted Subsidiaries...70

         Section 4.16.      Payments for Consent.......................................................71

         Section 4.17.      Corporate Existence........................................................71

         Section 4.18.      Change of Control..........................................................71

         Section 4.19.      Maintenance of Office or Agency............................................73

ARTICLE 5            SUCCESSOR CORPORATION.............................................................73

         Section 5.01.      Limitation on Consolidation, Merger and Sale of Property...................73

         Section 5.02.      Successor Person Substituted...............................................76

ARTICLE 6            DEFAULTS AND REMEDIES.............................................................76

         Section 6.01.      Events of Default..........................................................76

         Section 6.02.      Acceleration...............................................................78

         Section 6.03.      Other Remedies.............................................................78

         Section 6.04.      Waiver of Past Defaults and Events of Default..............................79

         Section 6.05.      Control by Majority........................................................79

         Section 6.06.      Limitation on Suits........................................................79

         Section 6.07.      Rights of Holders to Receive Payment.......................................80
</TABLE>

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                                   (CONTINUED)

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                                                                                                      PAGE
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<S>              <C>                                                                                   <C>

         Section 6.08.      Collection Suit by Trustee.................................................80

         Section 6.09.      Trustee MayFile Proofs of Claim............................................80

         Section 6.10.      Priorities.................................................................81

         Section 6.11.      Undertaking for Costs......................................................81

ARTICLE 7            TRUSTEE...........................................................................81

         Section 7.01.      Duties of Trustee..........................................................81

         Section 7.02.      Rights of Trustee..........................................................83

         Section 7.03.      Individual Rights of Trustee...............................................84

         Section 7.04.      Trustee's Disclaimer.......................................................84

         Section 7.05.      Notice of Defaults.........................................................84

         Section 7.06.      Reports by Trustee to Holders..............................................84

         Section 7.07.      Compensation and Indemnity.................................................84

         Section 7.08.      Replacement of Trustee.....................................................85

         Section 7.09.      Successor Trustee by Consolidation, Merger or Conversion...................86

         Section 7.10.      Eligibility; Disqualification..............................................87

         Section 7.11.      Preferential Collection of Claims Against Company..........................87

         Section 7.12.      Paying Agents..............................................................87

ARTICLE 8            AMENDMENTS, SUPPLEMENTS AND WAIVERS...............................................87

         Section 8.01.      Without Consent of Holders.................................................88

         Section 8.02.      With Consent of Holders....................................................88

         Section 8.03.      Compliance with Trust Indenture Act........................................89

         Section 8.04.      Revocation and Effect of Consents..........................................90

         Section 8.05.      Notation on or Exchange of Notes...........................................91

         Section 8.06.      Trustee to Sign Amendments, etc............................................91

ARTICLE 9            DISCHARGE OF INDENTURE; DEFEASANCE................................................92

         Section 9.01.      Discharge of Indenture.....................................................92

         Section 9.02.      Legal Defeasance...........................................................92

         Section 9.03.      Covenant Defeasance........................................................93

         Section 9.04.      Conditions to Defeasance or Covenant Defeasance............................93
</TABLE>

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                                   (CONTINUED)

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                                                                                                      PAGE
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<S>              <C>                                                                                   <C>

         Section 9.05.      Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
                            Miscellaneous Provisions...................................................95

         Section 9.06.      Reinstatement..............................................................95

         Section 9.07.      Moneys Held by Paying Agent................................................96

         Section 9.08.      Moneys Held by Trustee.....................................................96

ARTICLE 10           GUARANTEE OF SECURITIES...........................................................97

         Section 10.01.     Subsidiary Guarantee.......................................................97

         Section 10.02.     Execution and Delivery of Guarantees.......................................98

         Section 10.03.     Limitation of Subsidiary Guarantee.........................................98

         Section 10.04.     Additional Subsidiary Guarantors...........................................98

         Section 10.05.     Release of Subsidiary Guarantor............................................99

         Section 10.06.     Subsidiary Guarantee Obligations Subordinated to Guarantor Senior Debt.....99

         Section 10.07.     Payment Over of Proceeds upon Dissolution, etc., of a Subsidiary
                            Guarantor.................................................................100

         Section 10.08.     Suspension of Subsidiary Guarantee Obligations When Guarantor Senior
                            Debt in Default...........................................................101

         Section 10.09.     Subrogation to Rights of Holders of Guarantor Senior Debt.................103

         Section 10.10.     Guarantee Subordination Provisions Solely to Define Relative Rights.......103

         Section 10.11.     Application of Certain Article 11 Provisions..............................104

ARTICLE 11           SUBORDINATION OF NOTES...........................................................104

         Section 11.01.     Notes Subordinate to Senior Debt..........................................104

         Section 11.02.     Payment Over of Proceeds upon Dissolution, etc............................104

         Section 11.03.     Suspension of Payment When Designated Senior Debt in Default..............106

         Section 11.04.     Trustee's Relation to Senior Debt.........................................107

         Section 11.05.     Subrogation to Rights of Holders of Senior Debt...........................107

         Section 11.06.     Provisions Solely to Define Relative Rights...............................108

         Section 11.07.     Trustee to Effectuate Subordination.......................................108

         Section 11.08.     No Waiver of Subordination Provisions.....................................109

</TABLE>

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<TABLE>
<CAPTION>

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<S>              <C>                                                                                   <C>

         Section 11.09.     Notice to Trustee.........................................................109

         Section 11.10.     Reliance on Judicial Order or Certificate of Liquidating Agent............110

         Section 11.11.     Rights of Trustee as a Holder of Senior Debt; Preservation of Trustee's
                            Rights....................................................................110

         Section 11.12.     Article Applicable to Paying Agents.......................................111

         Section 11.13.     No Suspension of Remedies.................................................111

ARTICLE 12           MISCELLANEOUS....................................................................111

         Section 12.01.     Trust Indenture Act Controls..............................................111

         Section 12.02.     Notices...................................................................111

         Section 12.03.     Communications by Holders with Other Holders..............................112

         Section 12.04.     Certificate and Opinion as to Conditions Precedent........................113

         Section 12.05.     Statements Required in Certificate and Opinion............................113

         Section 12.06.     When Treasury Notes Disregarded...........................................113

         Section 12.07.     Rules by Trustee and Agents...............................................114

         Section 12.08.     Business Days; Legal Holidays.............................................114

         Section 12.09.     Governing Law.............................................................114

         Section 12.10.     No Adverse Interpretation of Other Agreements.............................114

         Section 12.11.     No Recourse Against Others................................................114

         Section 12.12.     Successors................................................................115

         Section 12.13.     Multiple Counterparts.....................................................115

         Section 12.14.     Table of Contents, Headings, etc..........................................115

         Section 12.15.     Separability..............................................................115

EXHIBITS

         Exhibit A          Form of Note..............................................................A-1

         Exhibit B          Form of Certificate of Transfer...........................................B-1

         Exhibit C          Form of Certificate of Exchange...........................................C-1

         Exhibit D          Form of Certificate of Acquiring Institutional

                  Accredited Investors................................................................D-1

</TABLE>

                                       v

<PAGE>   9

                  INDENTURE, dated as of July 12, 2001, among PAXSON
COMMUNICATIONS CORPORATION, a Delaware corporation, as Issuer (the "COMPANY"),
the SUBSIDIARY GUARANTORS (as defined herein) parties hereto and THE BANK OF NEW
YORK, a New York banking corporation, as Trustee (the "TRUSTEE").

                  Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of the Company's 10
3/4% Senior Subordinated Notes due 2008 (the "NOTES"):

                                   ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.     DEFINITIONS.

                  "144A GLOBAL NOTE" means a global note substantially in the
form of Exhibit A hereto bearing the Global Note Legend and the Restricted Notes
Legend and deposited with or on behalf of, and registered in the name of, the
Depository or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 144A.

                  "ACQUIRED DEBT" means Debt of a Person (including an
Unrestricted Subsidiary) outstanding on the date on which such Person becomes a
Restricted Subsidiary or assumed in connection with the acquisition of assets
from such Person.

                  "ADDITIONAL ASSETS" means:

                  (a) any Property (other than cash, cash equivalents and
         securities) to be owned by the Company or any Restricted Subsidiary and
         used in a Company Business; or

                  (b) Capital Stock of a Person that becomes a Restricted
         Subsidiary as a result of the acquisition of such Capital Stock by the
         Company or another Restricted Subsidiary from any Person other than the
         Company or another Restricted Subsidiary; PROVIDED, HOWEVER, that, in
         the case of clause (b), such Restricted Subsidiary is primarily engaged
         in a Company Business.

                  "AFFILIATE" of any specified Person means:

                  (a) any other Person directly or indirectly controlling or
         controlled by or under direct or indirect common control with such
         specified Person; or

                  (b) any other Person who is a director or officer of

                           (1)      such specified Person,

                           (2)      any Subsidiary of such specified Person, or

<PAGE>   10

                           (3)      any Person described in clause (a) above.

For the purposes of this definition, "control" when used with respect to any
Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing. For purposes of Section 4.11 only,
"Affiliate" shall also mean any beneficial owner of shares representing 10 3/4%
or more of the total voting power of the Voting Stock (on a fully diluted basis)
of the Company or of rights or warrants to purchase such Voting Stock (whether
or not currently exercisable) and any Person who would be an Affiliate of any
such beneficial owner pursuant to the first sentence hereof.

                  "AGENT" means any Registrar, Paying Agent, co-registrar or
agent for service of notices and demands.

                  "APPLICABLE PROCEDURES" means, with respect to any transfer or
exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depository and, with respect to a Regulation S Global Note,
Euroclear and Clearstream, that apply to such transfer or exchange.

                  "ASSET SALE" means any sale, lease, transfer, issuance or
other disposition (or series of related sales, leases, transfers, issuances or
dispositions) by the Company or any Restricted Subsidiary, including any
disposition by means of a merger, consolidation or similar transaction (each
referred to for the purposes of this definition as a "disposition"), of

                  (a) any shares of Capital Stock of a Restricted Subsidiary
         (other than directors' qualifying shares) or

                  (b) any other assets of the Company or any Restricted
         Subsidiary outside of the ordinary course of business of the Company or
         such Restricted Subsidiary,

         other than, in the case of clause (a) or (b) above,

                           (1) any disposition by a Restricted Subsidiary to the
                  Company or by the Company or a Restricted Subsidiary to a
                  Wholly Owned Restricted Subsidiary,

                           (2) any disposition that constitutes a Permitted
                  Investment or Restricted Payment permitted by Section 4.08,

                           (3) any disposition effected in compliance with
                  Section 5.01, and

                           (4) any disposition in a single transaction or a
                  series of related transactions of assets for aggregate
                  consideration of less than $1.0 million.

                                       2
<PAGE>   11

Notwithstanding the foregoing, a Spectrum Sale shall not constitute an Asset
Sale.

                  "ATTRIBUTABLE DEBT" in respect of a Sale and Leaseback
Transaction means, at any date of determination,

                  (a) if such Sale and Leaseback Transaction is a Capital Lease
         Obligation, the amount of Debt represented thereby according to the
         definition of "Capital Lease Obligation" and

                  (b) in all other instances, the present value (discounted at
         the interest rate borne by the Notes, compounded annually) of the total
         obligations of the lessee for rental payments during the remaining term
         of the lease included in such Sale and Leaseback Transaction (including
         any period for which such lease has been extended).

                  "AVERAGE LIFE" means, as of any date of determination, with
respect to any Debt or Preferred Stock, the quotient obtained by dividing

                  (a) the sum of the product of the numbers of years (rounded to
         the nearest one-twelfth of one year) from the date of determination to
         the dates of each successive scheduled principal payment of such Debt
         or redemption or similar payment with respect to such Preferred Stock
         multiplied by the amount of such payment by

                  (b) the sum of all such payments.

                  "BOARD OF DIRECTORS" means the board of directors of the
Company or a Subsidiary Guarantor, as appropriate, or any committee authorized
to act therefor.

                  "BOARD RESOLUTION" means a copy of a resolution certified
pursuant to an Officers' Certificate to have been duly adopted by the Board of
Directors of the Company or a Subsidiary Guarantor, as appropriate, and to be in
full force and effect, and delivered to the Trustee.

                  "BROKER-DEALER" has the meaning set forth in the Registration
Rights Agreement.

                  "CAPITAL LEASE OBLIGATIONS" means any obligation under a lease
that is required to be capitalized for financial reporting purposes in
accordance with GAAP; and the amount of Debt represented by such obligation
shall be the capitalized amount of such obligations determined in accordance
with GAAP; and the Stated Maturity thereof shall be the date of the last payment
of rent or any other amount due under such lease prior to the first date upon
which such lease may be terminated by the lessee without payment of a penalty.
For purposes of Section 4.09, a Capital Lease Obligation shall be deemed secured
by a Lien on the Property being leased.

                  "CAPITAL STOCK" means, with respect to any Person, any shares
or other equivalents (however designated) of any class of corporate stock or
partnership interests or any other participations, rights, warrants, options or

                                       3
<PAGE>   12

other interests in the nature of an equity interest in such Person, including
Preferred Stock, but excluding any debt security convertible or exchangeable
into such equity interest.

                  "CAPITAL STOCK SALE PROCEEDS" means the aggregate cash
proceeds received by the Company from the issuance or sale (other than to a
Subsidiary of the Company) by the Company of its Capital Stock (other than
Disqualified Capital Stock) after the Issue Date, net of attorneys' fees,
accountants' fees, underwriters' or placement agents' fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

                  "CASH EQUIVALENTS" means (i) marketable direct obligations
issued by, or unconditionally guaranteed by, the United States Government or
issued by any agency thereof and backed by the full faith and credit of the
United States, in each case maturing within one year from the date of
acquisition thereof; (ii) marketable direct obligations issued by any state of
the United States of America or any political subdivision of any such state or
any public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from either S&P or Moody's; (iii) commercial paper
maturing no more than one year from the date of creation thereof and, at the
time of acquisition, having a rating of at least A-1 from S&P or at least P-1
from Moody's; (iv) certificates of deposit or bankers' acceptances maturing
within one year from the date of acquisition thereof issued by any commercial
bank organized under the laws of the United States of America or any state
thereof or the District of Columbia or any U.S. branch of a foreign bank having
at the date of acquisition thereof combined capital and surplus of not less than
$250,000,000; (v) repurchase obligations with a term of not more than seven days
for underlying securities of the types described in clause (i) above entered
into with any bank meeting the qualifications specified in clause (iv) above;
and (vi) investments in money market funds which invest substantially all their
assets in securities of the types described in clauses (i) through (v) above.

                  "CHANGE OF CONTROL" means the occurrence of any of the
following events:

                  (a) any "person" or "group" (as such terms are used in
         Sections 13(d) and 14(d) of the Exchange Act or any successor
         provisions to either of the foregoing), including any group acting for
         the purpose of acquiring, holding, voting or disposing of securities
         within the meaning of Rule 13d-5(b)(1) under the Exchange Act, other
         than any one or more of the Permitted Holders, becomes the "beneficial
         owner" (as defined in Rule 13d-3 under the Exchange Act, except that a
         person will be deemed to have "beneficial ownership" of all shares that
         any such person has the right to acquire, whether such right is
         exercisable immediately or only after the passage of time), directly or
         indirectly, of 33 1/3% or more of the total voting power of the Voting
         Stock of the Company; PROVIDED, HOWEVER, that the Permitted Holders are
         the "beneficial owners" (as defined in Rule 13d-3 under the Exchange
         Act, except that a person will be deemed to have "beneficial ownership"
         of all shares that any such person has the right to acquire, whether

                                       4
<PAGE>   13

         such right is exercisable immediately or only after the passage of
         time), directly or indirectly, in the aggregate of a lesser percentage
         of the total voting power of the Voting Stock of the Company than such
         other person or group (for purposes of this clause (a), such person or
         group shall be deemed to beneficially own any Voting Stock of a
         corporation held by any other corporation (the "parent corporation") so
         long as such person or group beneficially owns, directly or indirectly,
         in the aggregate a majority of the total voting power of the Voting
         Stock of such parent corporation); or

                  (b) the Company merges, consolidates or amalgamates with or
         into any other Person or any other Person merges, consolidates or
         amalgamates with or into the Company, in any such event pursuant to a
         transaction in which the outstanding Voting Stock of the Company is
         reclassified into or exchanged for cash, securities or other Property,
         other than any such transaction where

                           (1) the outstanding Voting Stock of the Company is
                  reclassified into or exchanged for other Voting Stock of the
                  Company or for Voting Stock of the surviving corporation and

                           (2) the holders of the Voting Stock of the Company
                  immediately prior to such transaction own, directly or
                  indirectly, not less than a majority of the Voting Stock of
                  the Company or the surviving corporation immediately after
                  such transaction and in substantially the same proportion as
                  before the transaction; or

                  (c) during any period of two consecutive years, individuals
         who at the beginning of such period constituted the Board of Directors
         (together with any new directors whose election or appointment by such
         Board or whose nomination for election by the stockholders of the
         Company was approved by a vote of not less than a majority of the
         directors then still in office who were either directors at the
         beginning of such period or whose election or nomination for election
         was previously so approved) cease for any reason to constitute a
         majority of the Board of Directors then in office; or

                  (d) the stockholders of the Company shall have approved any
         plan of liquidation or dissolution of the Company.

                  "CLEARSTREAM" means Clearstream Banking, societe anonyme or
any successor or securities clearing agency.

                  "CODE" means the Internal Revenue Code of 1986, as amended.

                  "COMPANY" means the party named as such in the first paragraph
of this Indenture until a successor replaces such party pursuant to Article 5 of
this Indenture and thereafter means the successor and any other obligor on the
Notes.

                  "COMPANY BUSINESS" means any business in which the Company or
any Restricted Subsidiary was engaged on the Issue Date, or any business related

                                       5
<PAGE>   14

or ancillary to any business or industry in which the Company or any Restricted
Subsidiary was engaged on the Issue Date.

                  "COMPANY REQUEST" means any written request signed in the name
of the Company by the Chief Executive Officer, the President, any Vice
President, the Chief Financial Officer or the Treasurer and attested to by the
Secretary or any Assistant Secretary of the Company.

                  "CONSOLIDATED EBITDA" means, for any Person, for any period,
an amount equal to:

                  (a) the sum of Consolidated Net Income for such period, plus,
         to the extent deducted in determining Consolidated Net Income,

                           (i) the provision for taxes for such period based on
                  income or profits and any provision for taxes utilized in
                  computing a loss in Consolidated Net Income above, plus

                           (ii) Consolidated Interest Expense, net of interest
                  income earned on cash or cash equivalents for such period,
                  plus

                           (iii) depreciation for such period on a consolidated
                  basis, plus

                           (iv) amortization of intangibles (excluding the
                  amortization of Film Contracts), plus

                           (v) any other non-cash items (other than any such
                  non-cash item to the extent that it represents an accrual of
                  or reserve for cash expenditures in any future period); minus

                  (b) all non-cash items increasing Consolidated Net Income for
         such period (other than any such non-cash item to the extent that it
         will result in the receipt of cash payments in any future period);

PROVIDED, HOWEVER, that, for purposes of calculating Consolidated EBITDA during
any fiscal quarter, cash income from a particular Investment of such Person
shall be included only if cash income has been received by such Person as a
result of the operation of the business in which such Investment has been made
in the ordinary course without giving effect to any extraordinary unusual and
non-recurring gains.

                  "CONSOLIDATED INTEREST EXPENSE" means, with respect to any
Person, for any period, the aggregate amount of interest which, in conformity
with GAAP, would be set forth opposite the caption "interest expense" or any
like caption on an income statement for such Person and its Restricted
Subsidiaries on a consolidated basis, including, but not limited to:

                  (a) interest expense attributable or imputed to leases
         constituting part of a Sale and Leaseback Transaction and to Capital
         Lease Obligations;

                                       6
<PAGE>   15

                  (b) all commissions, discounts and other fees and charges owed
         with respect to letters of credit and bankers' acceptance financing;

                  (c) the net costs associated with Hedging Obligations;

                  (d) amortization of other financing fees and expenses;

                  (e) the interest portion of any deferred payment obligation;

                  (f) amortization of discount or premium, if any, and all other
         non-cash interest expense (other than interest amortized to cost of
         sales); and

                  (g) without duplication,

                           (1) all net capitalized interest for such period and
                  all interest incurred or paid under any Guarantee of Debt
                  (including a Guarantee of principal, interest or any
                  combination thereof) of any Person, and

                           (2) all time brokerage fees relating to financing of
                  radio or television stations which such Person has an
                  agreement or option to acquire.

                  "CONSOLIDATED NET INCOME" means, with respect to any Person,
for any period, the aggregate of the net income (or loss) of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; PROVIDED, HOWEVER, that:

                  (a) the net income of any Person (the "other Person") in which
         the Person in question or any of its Restricted Subsidiaries has less
         than a 100% interest (which interest does not cause the net income of
         such other Person to be consolidated into the net income of the Person
         in question in accordance with GAAP) shall be included only to the
         extent of the amount of dividends or distributions paid to the Person
         in question or to the Subsidiary;

                  (b) the net income of any Restricted Subsidiary of the Person
         in question that is subject to any restriction or limitation on the
         payment of dividends or the making of other distributions (other than,
         if applicable, pursuant to the Notes, this Indenture, the Exchange
         Debentures or the Exchange Indentures) shall be excluded to the extent
         of such restriction or limitation;

                  (c) (i) the net income of any Person acquired in a pooling of
         interests transaction for any period prior to the date of such
         acquisition and (ii) any net gain (but not loss) resulting from an
         Asset Sale by the Person in question or any of its Subsidiaries other
         than in the ordinary course of business shall be excluded;

                  (d) extraordinary, unusual and non-recurring gains and losses
         shall be excluded;

                                       7
<PAGE>   16

                  (e) losses associated with discontinued and terminated
         operations in an amount not to exceed $1.0 million per annum shall be
         excluded; and

                  (f) all non-cash items (including, without limitation,
         cumulative effects of changes in GAAP and equity entitlements granted
         to employees of such Person and its Restricted Subsidiaries) increasing
         and decreasing Consolidated Net Income and not otherwise included in
         the definition of Consolidated EBITDA shall be excluded.

                  "CORPORATE TRUST OFFICE" means the office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date of execution of this Indenture is located
at 101 Barclay Street, Floor 21 West, New York, NY 10286, attention: Corporate
Trust Administration.

                  "CREDIT FACILITIES" means, with respect to the Company or any
Restricted Subsidiary, one or more debt or commercial paper facilities with
banks or other institutional lenders (including the Senior Credit Facility)
providing for revolving credit loans, term loans, receivables or inventory
financing (including through the sale of receivables or inventory to such
lenders or to special purpose, bankruptcy remote entities formed to borrow from
such lenders against such receivables or inventory) or trade letters of credit,
in each case together with any amendments, amendments and restatements or
modifications thereof or extensions, revisions, refinancings or replacements
thereof by one or more lenders or a syndicate of lenders.

                  "CUMULATIVE CONSOLIDATED EBITDA" means, with respect to any
Person, as of any date of determination, Consolidated EBITDA from the Issue Date
to the end of the Company's most recently ended full fiscal quarter prior to
such date, taken as a single accounting period.

                  "CUMULATIVE CONSOLIDATED INTEREST EXPENSE" means, with respect
to any Person, as of any date of determination, Consolidated Interest Expense,
from the Issue Date to the end of such Person's most recently ended full fiscal
quarter prior to such date, taken as a single accounting period.

                  "CURRENCY EXCHANGE PROTECTION AGREEMENT" means, in respect of
a Person, any foreign exchange contract, currency swap agreement, currency
option or other similar agreement or arrangement designed to protect such Person
against fluctuations in currency exchange rates.

                  "DEBT" means, with respect to any Person on any date of
determination (without duplication):

                  (a) the principal of and premium (if any) in respect of

                           (1) debt of such Person for money borrowed and

                           (2) debt evidenced by notes, debentures, bonds or
                  other similar instruments for the payment of which such Person
                  is liable;

                                       8
<PAGE>   17

                  (b) all Capital Lease Obligations of such Person and all
         Attributable Debt in respect of Sale and Leaseback Transactions entered
         into by such Person;

                  (c) all obligations of such Person representing the deferred
         and unpaid purchase price of Property, all conditional sale obligations
         of such Person and all obligations of such Person under any title
         retention agreement (but excluding trade accounts payable and other
         accrued liabilities arising in the ordinary course of business,
         including any obligations in respect of Film Contracts);

                  (d) all obligations of such Person for the reimbursement of
         any obligor on any letter of credit, banker's acceptance or similar
         credit transaction (other than obligations with respect to letters of
         credit securing obligations (other than obligations described in (a)
         through (c) above) entered into in the ordinary course of business of
         such Person to the extent such letters of credit are not drawn upon or,
         if and to the extent drawn upon, such drawing is reimbursed no later
         than the third business day following receipt by such Person of a
         demand for reimbursement following payment on the letter of credit);

                  (e) the amount of all obligations of such Person with respect
         to the Repayment of any Disqualified Capital Stock or, with respect to
         any Subsidiary of such Person, any Preferred Stock (but excluding, in
         each case, any accrued dividends);

                  (f) all obligations of the type referred to in clauses (a)
         through (e) of other Persons and all dividends of other Persons for the
         payment of which, in either case, such Person is liable, directly or
         indirectly, as obligor, guarantor or otherwise, including by means of
         any Guarantee;

                  (g) all obligations of the type referred to in clauses (a)
         through (f) of other Persons secured by any Lien on any Property of
         such Person (whether or not such obligation is assumed by such Person),
         the amount of such obligation being deemed to be the lesser of the
         value of such Property and the amount of the obligation so secured; and

                  (h) to the extent not otherwise included in this definition,
         Hedging Obligations of such Person.

The amount of Debt of any Person at any date shall be the outstanding principal
balance, or the accreted value of such Debt in the case of Debt issued with
original issue discount, at such date of all unconditional obligations as
described above and the maximum liability upon the occurrence of the contingency
giving rise to the obligation, of any contingent obligations at such date. Debt
shall not include contingent obligations arising out of customary
indemnification agreements with respect to the sale of assets or securities. The
amount of Debt represented by a Hedging Obligation shall be equal to:

                           (1) zero if such Hedging Obligation has been incurred
                  pursuant to clause (e) or (f) of the definition of "Permitted
                  Debt;" or

                                       9
<PAGE>   18

                           (2) the notional amount of such Hedging Obligation if
                  not incurred pursuant to such clauses.

                  "DEFAULT" means an event or condition the occurrence of which
is, or after notice or passage of time or both would be, an Event of Default.

                  "DEFINITIVE NOTE" means a certificated Note registered in the
name of the Holder thereof and issued in accordance with Section 2.06 hereof,
substantially in the form of Exhibit A hereto except that such Note shall not
bear the Global Note Legend and shall not have the "Schedule of Exchanges of
Interests in the Global Note" attached thereto.

                  "DEPOSITORY" means, with respect to the Notes issued in the
form of one or more Global Notes, The Depository Trust Company or another Person
designated as Depository by the Company, which Person must be a clearing agency
registered under the Exchange Act.

                  "DESIGNATED SENIOR DEBT" means:

                  (a) any Senior Debt which, at the time of determination, has
         an aggregate principal amount of at least $25.0 million (or accreted
         value in the case of Debt issued at a discount) and is specifically
         designated in the instrument evidencing such Senior Debt as "Designated
         Senior Debt"; and

                  (b) the Senior Credit Facility.

                  "DISQUALIFIED CAPITAL STOCK" means, with respect to any
Person, any Capital Stock that by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable, in either case at
the option of the holder thereof) or otherwise

                  (a) matures or is mandatorily redeemable pursuant to a sinking
         fund obligation or otherwise,

                  (b) is or may become redeemable or repurchaseable at the
         option of the holder thereof, in whole or in part, or

                  (c) is convertible or exchangeable at the option of the holder
         thereof for Debt or Disqualified Capital Stock,

on or prior to, in the case of clause (a), (b) or (c), the 91st day after the
Stated Maturity of the Notes.

                  "DOMESTIC RESTRICTED SUBSIDIARY" means any Restricted
Subsidiary other than (a) a Foreign Restricted Subsidiary or (b) a Subsidiary of
a Foreign Restricted Subsidiary.

                                       10
<PAGE>   19

                  "EUROCLEAR" means Euroclear Bank S.A./N.V., as operator of the
Euroclear System.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                  "EXCHANGE DEBENTURES" means the 8% Exchange Debentures due
2009, if issued, the 13 1/4% Exchange Debentures due 2006, if issued, and the 12
1/2% Exchange Debentures due 2006, if issued, issued under the Exchange
Indentures, in each case as they may be modified or amended from time to time.

                  "EXCHANGE INDENTURES" means the indentures dated September 15,
1999, June 10, 1998 and October 4, 1996, between the Company, the guarantors
parties thereto and The Bank of New York, as trustee, which govern the Exchange
Debentures, in each case as they may be modified or amended from time to time.

                  "EXCHANGE NOTES" means the Notes issued in the Exchange Offer
pursuant to Section 2.06(f) hereof.

                  "EXCHANGE OFFER" has the meaning set forth in the Registration
Rights Agreement.

                  "EXCHANGE OFFER REGISTRATION STATEMENT" has the meaning set
forth in the Registration Rights Agreement.

                  "EXCLUDED ASSET SALES" means (1) the sale of the Company's
stations in each of Puerto Rico (three full power stations), Honolulu, Hawaii
(one full power station), Boston (Merrimack, New Hampshire) (one full power
station), New York (East Orange, New Jersey & Long Island) (two low power
stations), St. Croix, Virgin Islands (one full power station), Houston, Texas
(one low power station), West Palm Beach, Florida (one low power station),
Boston-Cape Cod, Massachusetts (Dennis, Massachusetts) (one low power station),
and Indianapolis, Indiana (one low power station), (2) the sale of Tower Assets,
and (3) any disposition of accounts receivable in connection with a Receivables
Facility.

                  "EXISTING PREFERRED STOCK" means:

                  (a) the 12 1/2% Cumulative Exchangeable Preferred Stock, $.001
         par value, of which 261,063 shares are outstanding as of the Issue Date
         with a liquidation preference of $1,000 per share, and any additional
         shares issued as payment of dividends on such shares;

                  (b) the 13 1/4% Cumulative Junior Exchangeable Preferred
         Stock, $.001 par value, of which 29,145 shares are outstanding as of
         the Issue Date with a liquidation preference of $10,000 per share, and
         any additional shares issued as payment of dividends on such shares;

                                       11
<PAGE>   20

                  (c) the 8% Convertible Exchangeable Preferred Stock, $.001 par
         value, of which 41,500 shares are outstanding as of the Issue Date with
         a liquidation preference of $10,000 per share; and

                  (d) the 9 3/4% Series A Convertible Preferred Stock, $.001 par
         value, of which 10,069 shares are outstanding as of the Issue Date with
         a liquidation preference of $10,000 per share, and any additional
         shares issued as payment of dividends on such shares;

in each case as they may be modified or amended from time to time.

                  "FAIR MARKET VALUE" means, with respect to any Property, the
sale price for such Property that could be negotiated in an arm's-length
transaction, for cash, between a willing seller and a willing buyer, neither of
whom is under undue pressure or compulsion to complete the transaction.

                  "FILM CONTRACT" means any contract with suppliers that conveys
the right to broadcast specified film, videotape, motion pictures, syndicated
television programs or sports or other programming.

                  "FOREIGN RESTRICTED SUBSIDIARY" means any Restricted
Subsidiary which is not organized under the laws of the United States of America
or any State thereof or the District of Columbia.

                  "GAAP" means United States generally accepted accounting
principles as in effect from time to time, including those set forth in:

                  (a) the opinions and pronouncements of the Accounting
         Principles Board of the American Institute of Certified Public
         Accountants;

                  (b) the statements and pronouncements of the Financial
         Accounting Standards Board; and

                  (c) the rules and regulations of the Commission governing the
         inclusion of financial statements (including pro forma financial
         statements) in periodic reports required to be filed pursuant to
         Section 13 of the Exchange Act, including opinions and pronouncements
         in staff accounting bulletins and similar written statements from the
         accounting staff of the Commission.

                  "GLOBAL NOTE LEGEND" means the legend set forth in Section
2.06(g)(ii), which is required to be placed on all Global Notes issued under
this Indenture.

                  "GLOBAL NOTES" means, individually and collectively, each of
the Restricted Global Notes and the Unrestricted Global Notes, substantially in
the form of Exhibit A hereto issued in accordance with Section 2.01,
2.06(b)(iv), 2.06(d)(ii) or 2.06(f) hereof.

                                       12
<PAGE>   21

                  "GUARANTEE" means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Debt of any other Person and
any obligation, direct or indirect, contingent or otherwise, of such Person:

                  (a) to purchase or pay (or advance or supply funds for the
         purchase or payment of) such Debt of such other Person (whether arising
         by virtue of partnership arrangements, or by agreements to keep-well,
         to purchase assets, goods, securities or services, to take-or-pay or to
         maintain financial statement conditions or otherwise); or

                  (b) entered into for the purpose of assuring in any other
         manner the obligee against loss in respect thereof (in whole or in
         part);

         PROVIDED, HOWEVER, that the term "Guarantee" shall not include:

                           (1) endorsements for collection or deposit in the
                  ordinary course of business; or

                           (2) a contractual commitment to invest in another
                  Person for so long as such Investment is reasonably expected
                  to constitute a Permitted Investment under clause (b) of the
                  definition of "Permitted Investment."

                  The term "Guarantee" used as a verb has a corresponding
meaning. The term "Guarantor" shall mean any Person Guaranteeing any obligation.

                  "GUARANTOR SENIOR DEBT" means with respect to any Subsidiary
Guarantor:

                  (a) all Obligations consisting of the principal, premium, if
         any, and accrued and unpaid interest (including interest accruing on or
         after the filing of any petition in bankruptcy or for reorganization
         relating to such Subsidiary Guarantor at the rate specified in the
         agreement or instrument evidencing such Debt, whether or not such
         interest is allowed in such proceeding) and any other Obligation in
         respect of

                           (1) the Credit Facilities,

                           (2) Debt of such Subsidiary Guarantor for borrowed
                  money and

                           (3) Debt of such Subsidiary Guarantor evidenced by
                  notes, debentures, bonds or other similar instruments
                  permitted under this Indenture for the payment of which such
                  Subsidiary Guarantor is responsible or liable;

                  (b) all Capital Lease Obligations of such Subsidiary Guarantor
         and all Attributable Debt in respect of Sale and Leaseback Transactions
         entered into by such Subsidiary Guarantor;

                                       13
<PAGE>   22

                  (c) all obligations of such Subsidiary Guarantor (1) for the
         reimbursement of any obligor on any letter of credit, bankers'
         acceptance or similar credit transaction, (2) under Interest Rate
         Agreements or (3) issued or assumed as the deferred purchase price of
         Property and all conditional sale obligations of such Subsidiary
         Guarantor and all obligations under any title retention agreement
         permitted under this Indenture; and

                  (d) all obligations of other Persons of the type referred to
         in clauses (a), (b) and (c) for the payment of which such Subsidiary
         Guarantor is responsible or liable as Guarantor;

PROVIDED, HOWEVER, that Guarantor Senior Debt shall not include:

                  (A) Debt of such Subsidiary Guarantor that is by its terms
         subordinate or pari passu in right of payment to the applicable
         Subsidiary Guarantee, including any Senior Subordinated Debt or any
         Subordinated Obligations;

                  (B) any Debt incurred in violation of the provisions of this
         Indenture;

                  (C) accounts payable or any other obligations of such
         Subsidiary Guarantor to trade creditors created or assumed by such
         Subsidiary Guarantor in the ordinary course of business in connection
         with the obtaining of materials or services (including Guarantees
         thereof or instruments evidencing such liabilities and obligations with
         respect to Film Contracts);

                  (D) any liability for federal, state, local or other taxes
         owed or owing by such Subsidiary Guarantor;

                  (E) any obligation of such Subsidiary Guarantor to any
         Subsidiary;

                  (F) any obligations with respect to any Capital Stock of such
         Subsidiary Guarantor; or

                  (G) any Debt that does not constitute Guarantor Senior Debt
         under the Exchange Indentures for so long as any Exchange Debentures
         are outstanding or issuable thereunder (it being understood that, in
         any event, Obligations under any guarantees of the Senior Credit
         Facility constitute Guarantor Senior Debt).

                  "HEDGING OBLIGATION" of any Person means any obligation of
such Person pursuant to any Interest Rate Agreement, Currency Exchange
Protection Agreement or any other similar agreement or arrangement.

                  "HOLDER" or "NOTEHOLDER" means the Person in whose name a Note
is registered on the Registrar's books.

                  "INCUR" means, with respect to any Debt or other obligation of
any Person, to create, issue, incur (by merger, conversion, exchange or
otherwise), extend, assume, Guarantee or become liable in respect of such Debt
or other obligation or the recording, as required pursuant to GAAP or otherwise,
of any such Debt or obligation on the balance sheet of such Person (and

                                       14
<PAGE>   23

"incurrence" and "incurred" shall have meanings correlative to the foregoing);
PROVIDED, HOWEVER, that a change in GAAP that results in an obligation of such
Person that exists at such time, and is not theretofore classified as Debt,
becoming Debt shall not be deemed an incurrence of such Debt; and PROVIDED
FURTHER, HOWEVER, that any Debt or other obligations of a Person existing at the
time such Person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be incurred by such Subsidiary at
the time it becomes a Subsidiary.

                  "INDEPENDENT FINANCIAL ADVISOR" means an investment banking
firm of national standing, PROVIDED that such firm is not an Affiliate of the
Company.

                  "INDENTURE" means this Indenture as amended, restated or
supplemented from time to time.

                  "INDIRECT PARTICIPANT" means a Person who holds a beneficial
interest in a Global Note through a Participant.

                  "INITIAL NOTES" means the first $200 million aggregate
principal amount of Notes issued under this Indenture on the date hereof.

                  "INSTITUTIONAL ACCREDITED INVESTOR" means an institution that
is an "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act, who is not also a QIB.

                  "INTEREST PAYMENT DATE" means the stated maturity of an
installment of interest on the Notes.

                  "INTEREST RATE AGREEMENT" means, for any Person, any interest
rate swap agreement, interest rate cap agreement, interest rate collar agreement
or other similar agreement designed to protect against fluctuations in interest
rates.

                  "INVESTMENT" by any Person means any direct or indirect loan
(other than advances to customers in the ordinary course of business that are
recorded as accounts receivable on the balance sheet of such Person), advance or
other extension of credit or capital contribution (by means of transfers of cash
or other Property to others or payments for Property or services for the account
or use of others, or otherwise) to, or incurrence of a Guarantee of any
obligation of, or purchase or acquisition of Capital Stock, bonds, notes,
debentures or other securities or evidence of Debt issued by, any other Person.
For purposes of Sections 4.08 and 4.13 and the definition of "Restricted
Payment," "Investment" shall include the portion (proportionate to the Company's
equity interest in such Subsidiary) of the Fair Market Value of the net assets
of any Subsidiary of the Company at the time that such Subsidiary is designated
an Unrestricted Subsidiary; PROVIDED, HOWEVER, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue
to have a permanent "Investment" in an Unrestricted Subsidiary of an amount (if
positive) equal to

                                       15
<PAGE>   24

                  (a) the Company's "Investment" in such Subsidiary at the time
         of such redesignation, less

                  (b) the portion (proportionate to the Company's equity
         interest in such Subsidiary) of the Fair Market Value of the net assets
         of such Subsidiary at the time of such redesignation.

                  In determining the amount of any Investment made by transfer
of any Property other than cash, such Property shall be valued at its Fair
Market Value at the time of such Investment.

                  "ISSUE DATE" means the date on which the Notes are initially
issued.

                  "LETTER OF TRANSMITTAL" means the letter of transmittal to be
prepared by the Company and sent to all Holders of the Notes for use by such
Holders in connection with the Exchange Offer.

                  "LIEN" means, with respect to any Property of any Person, any
mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, security interest, lien, charge, easement (other than any easement
not materially impairing usefulness or marketability), encumbrance, preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever on or with respect to such Property (including any Capital
Lease Obligation, conditional sale or other title retention agreement having
substantially the same economic effect as any of the foregoing or any Sale and
Leaseback Transaction).

                  "MATURITY DATE" means July 15, 2008.

                  "MOODY'S" means Moody's Investors Service, Inc. or any
successor to the rating agency business thereof.

                  "NET AVAILABLE CASH" from any Asset Sale or Spectrum Sale
means cash payments received therefrom (including any cash payments received by
way of deferred payment of principal pursuant to a note or installment
receivable or otherwise, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring Person of Debt
or other obligations relating to the Property that is the subject of such Asset
Sale or Spectrum Sale or received in any other non-cash form), in each case net
of:

                  (a) all legal, title and recording tax expenses, commissions
         and other fees and expenses incurred, and all Federal, state,
         provincial, foreign and local taxes required to be accrued as a
         liability under GAAP, as a consequence of such Asset Sale or Spectrum
         Sale;

                  (b) all payments made on or in respect of any Debt that is
         secured by any Property subject to such Asset Sale or Spectrum Sale in
         accordance with the terms of any Lien upon or other security agreement
         of any kind with respect to such Property, or which must by its terms,

                                       16
<PAGE>   25

         or in order to obtain a necessary consent to such Asset Sale or
         Spectrum Sale, or by applicable law, be repaid out of the proceeds from
         such Asset Sale or Spectrum Sale;

                  (c) all distributions and other payments required to be made
         to minority interest holders in Subsidiaries or joint ventures as a
         result of such Asset Sale or Spectrum Sale; and

                  (d) the deduction of appropriate amounts PROVIDED by the
         seller as a reserve, in accordance with GAAP, against any liabilities
         associated with the Property disposed of in such Asset Sale or Spectrum
         Sale and retained by the Company or any Restricted Subsidiary after
         such Asset Sale or Spectrum Sale.

                  "NON-PAYMENT EVENT OF DEFAULT" means any default (other than a
Payment Default) the occurrence of which entitles one or more Persons to
accelerate the maturity of any Designated Senior Debt.

                  "NON-U.S. PERSON" means a Person who is not a U.S. Person as
defined in Regulation S.

                  "OBLIGATIONS" means, with respect to any Debt, any principal,
premium, if any, interest (including interest accruing on or after the filing of
any petition in bankruptcy or for reorganization, at the rate specified in the
applicable documents governing such Debt, whether or not a claim for post-filing
interest is allowed in such proceeding), penalties, fees, indemnification,
guarantees, reimbursements, damages and other liabilities payable under the
documentation governing any Debt.

                  "OFFERING MEMORANDUM" means the Offering Memorandum, dated
June 29, 2001, of the Company relating to the offering of the Initial Notes.

                  "OFFICER" means the Chief Executive Officer, the President,
the Chief Financial Officer or any Executive Vice President of the Company or a
Subsidiary Guarantor.

                  "OFFICERS' CERTIFICATE" means with respect to any Person, a
certificate signed by two Officers, at least one of whom shall be the principal
executive officer or principal financial officer of such Person, and delivered
to the Trustee.

                  "OPINION OF COUNSEL" means a written opinion from legal
counsel who is acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or the Trustee.

                  "PARTICIPANT" means, with respect to the Depository, a Person
who has an account with the Depository.

                  "PAYMENT DEFAULT" means any default, whether or not any
requirement for the giving of notice, the lapse of time or both, or any other
condition to such default becoming an event of default has occurred, in the

                                       17
<PAGE>   26

payment of principal of (or premium, if any) or interest on or any other amount
payable in connection with Designated Senior Debt.

                  "PERMITTED DEBT" means each of the following:

                  (a) Debt of the Company evidenced by the Notes and the
         Exchange Notes and of Subsidiary Guarantors evidenced by Subsidiary
         Guarantees;

                  (b) Debt under the Credit Facilities, PROVIDED that the
         aggregate principal amount of all such Debt under the Credit Facilities
         at any one time outstanding shall not exceed $360.0 million;

                  (c) Debt in respect of Capital Lease Obligations and Purchase
         Money Debt, PROVIDED that:

                           (1) the aggregate principal amount of such Debt does
                  not exceed the Fair Market Value (on the date of the
                  incurrence thereof) of the Property acquired, constructed or
                  leased; and

                           (2) the aggregate principal amount of all Debt
                  incurred and then outstanding pursuant to this clause (c)
                  (together with all Refinancing Debt incurred and then
                  outstanding in respect of Debt previously incurred pursuant to
                  this clause (c)) does not exceed 5% of the Company's
                  consolidated total assets at the date of incurrence of
                  Permitted Debt pursuant to this clause (c);

                  (d) Debt of the Company owing to and held by any Wholly Owned
         Restricted Subsidiary and Debt of a Restricted Subsidiary owing to and
         held by the Company or any Wholly Owned Restricted Subsidiary;
         PROVIDED, HOWEVER, that any subsequent issue or transfer of Capital
         Stock or other event that results in any such Wholly Owned Restricted
         Subsidiary ceasing to be a Wholly Owned Restricted Subsidiary or any
         subsequent transfer of any such Debt (except to the Company or a Wholly
         Owned Restricted Subsidiary) shall be deemed, in each case, to
         constitute the incurrence of such Debt by the issuer thereof;

                  (e) Debt under Interest Rate Agreements entered into by the
         Company or a Restricted Subsidiary for the purpose of limiting interest
         rate risk in the ordinary course of the financial management of the
         Company or such Restricted Subsidiary and not for speculative purposes,
         PROVIDED that the obligations under such agreements are directly
         related to payment obligations on Debt otherwise permitted by the terms
         of this covenant;

                  (f) Debt under Currency Exchange Protection Agreements entered
         into by the Company or a Restricted Subsidiary for the purpose of
         limiting currency exchange rate risks directly related to transactions
         entered into by the Company or such Restricted Subsidiary in the
         ordinary course of business and not for speculative purposes;

                                       18
<PAGE>   27

                  (g) Debt in connection with one or more standby letters of
         credit or performance bonds issued by the Company or a Restricted
         Subsidiary in the ordinary course of business or pursuant to
         self-insurance obligations and not in connection with the borrowing of
         money or the obtaining of advances or credit;

                  (h) Attributable Debt with respect to Sale and Leaseback
         Transactions; PROVIDED, that the aggregate principal amount outstanding
         at any one time (together with all Refinancing Debt incurred and then
         outstanding in respect of Debt previously incurred pursuant to this
         clause (h)) does not exceed $40.0 million;

                  (i) Debt outstanding on the Issue Date not otherwise described
         in clauses (a) through (h) above;

                  (j) Debt in an aggregate principal amount outstanding at any
         one time not to exceed $25.0 million;

                  (k) Debt under either clause (1) or (2) below (but not both):

                           (1) Debt under the 12 1/2% Exchange Debentures and
                  the guarantees related thereto issued upon exchange of the 12
                  1/2% Cumulative Exchangeable Preferred Stock; PROVIDED, that:

                                    (A) there are no principal payments in
                           respect of such 12 1/2% Exchange Debentures prior to
                           the 91st day after the Stated Maturity of the Notes
                           and no cash interest is payable on such 12 1/2%
                           Exchange Debentures prior to July 15, 2005; or

                                    (B) the 12 1/2% Exchange Debentures are
                           Refinanced substantially concurrently with the
                           issuance thereof and the Debt that Refinances such 12
                           1/2% Exchange Debentures:

                                            (I) is in an aggregate principal
                                    amount (or if incurred with original issue
                                    discount, an aggregate issue price) not in
                                    excess of the sum of:

                                                     (x) the aggregate principal
                                            amount then outstanding (or if
                                            incurred with original issue
                                            discount, the aggregate accreted
                                            value at the date of such
                                            Refinancing) of such 12 1/2%
                                            Exchange Debentures; and

                                                     (y) an amount necessary to
                                            pay any fees and expenses, including
                                            premiums and defeasance costs,
                                            related to such Refinancing;

                                       19
<PAGE>   28

                                            (II) the Average Life of such Debt
                                    is equal to or greater than the Average Life
                                    of such 12 1/2% Exchange Debentures; and

                                            (III) there are no principal
                                    payments in respect of such Debt prior to
                                    the 91st day after the Stated Maturity of
                                    the Notes and no cash interest is payable on
                                    such Debt prior to July 15, 2005; or

                           (2) Debt under the 13 1/4% Exchange Debentures and
                  the guarantees related thereto issued upon exchange of the 13
                  1/4% Cumulative Junior Exchangeable Preferred Stock; PROVIDED,
                  that:

                                    (A) there are no principal payments in
                           respect of such 13 1/4% ExchanGe Debentures prior to
                           the 91st day after the Stated Maturity of the Notes
                           and no cash interest is payable on such 13 1/4%
                           Exchange Debentures prior to July 15, 2005; or

                                    (B) the 13 1/4% Exchange Debentures are
                           Refinanced substantially concurrently with the
                           issuance thereof and the Debt that Refinances such 13
                           1/4% Exchange Debentures:

                                            (I) is in an aggregate principal
                                    amount (or if incurred with original issue
                                    discount, an aggregate issue price) not in
                                    excess of the sum of:

                                                     (x) the aggregate principal
                                            amount then outstanding (or if
                                            incurred with original issue
                                            discount, the aggregate accreted
                                            value at the date of such
                                            Refinancing) of such 13 1/4%
                                            Exchange Debentures; and

                                                     (y) an amount necessary to
                                            pay any fees and expenses, including
                                            premiums and defeasance costs,
                                            related to such Refinancing;

                                            (II) the Average Life of such Debt
                                    is equal to or greater than the Average Life
                                    of such 13 1/4% Exchange Debentures; and

                                            (III) there are no principal
                                    payments in respect of such Debt prior to
                                    the 91st day after the Stated Maturity of
                                    the Notes and no cash interest is payable on
                                    such Debt prior to July 15, 2005;

                  (l) Refinancing Debt incurred in respect of Debt incurred
         pursuant to clause (1) of Section 4.06(a) or clauses (a), (c), (h), (i)
         or (k) above; and

                                       20
<PAGE>   29

                  (m) Debt of the Company or any Restricted Subsidiary under any
         Receivables Facility not to exceed $35.0 million at any one time
         outstanding.

                  "PERMITTED HOLDERS" means:

                  (a) collectively Lowell W. Paxson, his spouse, children or
         other lineal descendants (whether adoptive or biological), and any
         revocable or irrevocable inter vivos or testamentary trust or the
         probate estate of any such individual, so long as one or more of the
         foregoing individuals is the principal beneficiary of such trust or
         probate estate; and

                  (b) National Broadcasting Company, Inc. and its Affiliates.

                  "PERMITTED INVESTMENT" means any Investment by the Company or
a Restricted Subsidiary in existence on the Issue Date, and any Investment after
the Issue Date in:

                  (a) the Company or any Restricted Subsidiary or any Person
         that will, upon the making of such Investment, become a Restricted
         Subsidiary, PROVIDED that the primary business of such Restricted
         Subsidiary is a Company Business;

                  (b) any Person if as a result of such Investment such Person
         is merged or consolidated with or into, or transfers or conveys all or
         substantially all its Property to, the Company or a Restricted
         Subsidiary, PROVIDED that such Person's primary business is a Company
         Business;

                  (c) Temporary Cash Investments;

                  (d) receivables owing to the Company or a Restricted
         Subsidiary, if created or acquired in the ordinary course of business
         and payable or dischargeable in accordance with customary trade terms;
         PROVIDED, HOWEVER, that such trade terms may include such concessionary
         trade terms as the Company or such Restricted Subsidiary deems
         reasonable under the circumstances;

                  (e) payroll, travel and similar advances to cover matters that
         are expected at the time of such advances ultimately to be treated as
         expenses for accounting purposes and that are made in the ordinary
         course of business;

                  (f) loans and advances to employees made in the ordinary
         course of business consistent with past practices of the Company or
         such Restricted Subsidiary, as the case may be, PROVIDED that such
         loans and advances do not exceed $1.0 million to any one employee and
         $5.0 million in the aggregate at any one time outstanding;

                  (g) stock, obligations or other securities received in
         settlement of debts created in the ordinary course of business and
         owing to the Company or a Restricted Subsidiary or in satisfaction of
         judgments;

                                       21
<PAGE>   30

                  (h) any Person to the extent such Investment represents the
         non-cash portion of the consideration received in connection with an
         Asset Sale consummated in compliance with Section 4.10;

                  (i) Investments in connection with time brokerage and other
         similar agreements with independently owned broadcast properties, not
         to exceed an aggregate of $25.0 million outstanding at any one time;

                  (j) Investments primarily for the purpose of acquiring
         programming, not to exceed an aggregate of $25.0 million outstanding at
         any one time;

                  (k) any transaction where the consideration provided by the
         Company or any Restricted Subsidiary in connection with such Investment
         consists solely or principally of broadcast air time, not to exceed an
         aggregate of $5.0 million in any one year;

                  (l) other Investments that do not exceed $40.0 million
         outstanding at any one time in the aggregate; PROVIDED, HOWEVER, that
         such Investments are related to a Company Business; and

                  (m) Investments relating to any special purpose wholly-owned
         Subsidiary of the Company organized in connection with a Receivables
         Facility that, in the good faith determination of the Board of
         Directors of the Company, are necessary or advisable to effect such
         Receivables Facility.

                  For purposes of determining the amount of an Investment under
clauses (i) through (l), the amount of the Investment shall be the fair market
value thereof as measured at the time made and without giving effect to
subsequent changes in value.

                  "PERMITTED JUNIOR SECURITIES" means:

                  (1) Capital Stock in the Company or any Subsidiary Guarantor
         of the Notes; or

                  (2) debt securities that are subordinated to all Senior Debt
         and debt securities that are issued in exchange for Senior Debt to
         substantially the same extent as, or to a greater extent than, the
         Notes and the Subsidiary Guarantees are subordinated to Senior Debt
         under this Indenture and have a stated maturity after (and do not
         provide for scheduled principal payments prior to) the stated maturity
         of any Senior Debt and any debt securities issued in exchange for
         Senior Debt;

         PROVIDED, HOWEVER, that, if such Capital Stock or debt securities are
         distributed in a bankruptcy or insolvency proceeding, such Capital
         Stock or debt securities are distributed pursuant to a plan of
         reorganization consented to by each class of Designated Senior Debt.

                                       22
<PAGE>   31

                  "PERMITTED LIENS" means:

                  (a) Liens to secure all Obligations in respect of Debt
         described in clause (c) of the definition of "Permitted Debt;" PROVIDED
         that any such Lien may not extend to any Property of the Company or any
         Restricted Subsidiary other than the Property acquired, constructed or
         leased with the proceeds of such Debt and any improvements or
         accessions to such Property;

                  (b) Liens for taxes, assessments or governmental charges or
         levies on the Property of the Company or any Restricted Subsidiary if
         the same shall not at the time be delinquent or thereafter can be paid
         without penalty, or are being contested in good faith and by
         appropriate proceedings promptly instituted and diligently concluded,
         PROVIDED that any reserve or other appropriate provision that shall be
         required in conformity with GAAP shall have been made therefor;

                  (c) Liens imposed by law, such as carriers', warehousemen's
         and mechanics' Liens and other similar Liens, on the Property of the
         Company or any Restricted Subsidiary arising in the ordinary course of
         business and securing payment of obligations that are not more than 60
         days past due or are being contested in good faith and by appropriate
         proceedings;

                  (d) Liens on the Property of the Company or any Restricted
         Subsidiary incurred in the ordinary course of business to secure
         performance of obligations with respect to statutory or regulatory
         requirements, performance or return-of-money bonds, surety bonds or
         other obligations of a like nature and incurred in a manner consistent
         with industry practice, in each case which are not incurred in
         connection with the borrowing of money, the obtaining of advances or
         credit or the payment of the deferred purchase price of Property and
         which do not in the aggregate impair in any material respect the use of
         Property in the operation of the business of the Company and the
         Restricted Subsidiaries taken as a whole;

                  (e) Liens on Property at the time the Company or any
         Restricted Subsidiary acquired such Property, including any acquisition
         by means of a merger or consolidation with or into the Company or any
         Restricted Subsidiary; PROVIDED, HOWEVER, that any such Lien may not
         extend to any other Property of the Company or any Restricted
         Subsidiary; PROVIDED FURTHER, HOWEVER, that such Liens shall not have
         been incurred in anticipation of or in connection with the transaction
         or series of transactions pursuant to which such Property was acquired
         by the Company or any Restricted Subsidiary;

                  (f) Liens on the Property of a Person at the time such Person
         becomes a Restricted Subsidiary; PROVIDED, HOWEVER, that any such Lien
         may not extend to any other Property of the Company or any other
         Restricted Subsidiary that is not a direct Subsidiary of such Person;
         PROVIDED FURTHER, however, that any such Lien was not incurred in
         anticipation of or in connection with the transaction or series of
         transactions pursuant to which such Person became a Restricted
         Subsidiary;

                                       23
<PAGE>   32

                  (g) pledges or deposits by the Company or any Restricted
         Subsidiary under workmen's compensation laws, unemployment insurance
         laws or similar legislation, or good faith deposits in connection with
         bids, tenders, contracts (other than for the payment of Debt) or leases
         to which the Company or any Restricted Subsidiary is party, or deposits
         to secure public or statutory obligations of the Company, or deposits
         for the payment of rent, in each case incurred in the ordinary course
         of business;

                  (h) utility easements, building restrictions and such other
         encumbrances or charges against real Property as are of a nature
         generally existing with respect to properties of a similar character;

                  (i) Liens existing on the Issue Date not otherwise described
         in clauses (a) through (h) above; and

                  (j) Liens on the Property of the Company or any Restricted
         Subsidiary to secure any Refinancing, in whole or in part, of any Debt
         secured by Liens referred to in clause (a), (e), (f), or (i) above;
         PROVIDED, HOWEVER, that any such Lien shall be limited to all or part
         of the same Property that secured the original Lien (together with
         improvements and accessions to such Property) and the aggregate
         principal amount of Debt that is secured by such Lien shall not be
         increased to an amount greater than the sum of:

                  (1) the outstanding principal amount, or, if greater, the
              committed amount, of the Debt secured by Liens described under
              clause (a), (e), (f), or (i) above, as the case may be, at the
              time the original Lien became a Permitted Lien under this
              Indenture; and

                  (2) an amount necessary to pay any fees and expenses,
              including premiums and defeasance costs, incurred by the Company
              or such Restricted Subsidiary in connection with such Refinancing.

                  "PERSON" means any individual, corporation, company (including
any limited liability company), association, partnership, joint venture, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.

                  "PREFERRED STOCK" means any Capital Stock of a Person, however
designated, which entitles the holder thereof to a preference with respect to
the payment of dividends, or as to the distribution of assets upon any voluntary
or involuntary liquidation or dissolution of such Person, over shares of any
other class of Capital Stock issued by such Person.

                  "PROPERTY" means, with respect to any Person, any interest of
such Person in any kind of property or asset, whether real, personal or mixed,
or tangible or intangible, including Capital Stock in, and other securities of,
any other Person. For purposes of any calculation required pursuant to this
Indenture, the value of any Property shall be its Fair Market Value.

                                       24
<PAGE>   33

                  "PUBLIC EQUITY OFFERING" means an underwritten public offering
by the Company of common stock of the Company pursuant to an effective
registration statement under the Securities Act.

                  "PURCHASE MONEY DEBT" means Debt:

                  (a) consisting of the deferred purchase price of property,
         conditional sale obligations, obligations under any title retention
         agreement, other purchase money obligations and obligations in respect
         of industrial revenue bonds; and

                  (b) incurred to finance the acquisition, construction or lease
         by the Company or a Restricted Subsidiary of such Property, including
         additions and improvements thereto;

in each case including the reasonable fees and expenses incurred in connection
therewith; PROVIDED, HOWEVER, that such Debt is incurred within 180 days after
the acquisition, construction or lease of such Property by the Company or such
Restricted Subsidiary.

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

                  "RECEIVABLES FACILITY" means one or more receivables financing
facilities, as amended from time to time, pursuant to which the Company or any
of its Restricted Subsidiaries sells its accounts receivable to a Person that is
not a Restricted Subsidiary.

                  "RECEIVABLE FEES" means distributions or payments made
directly or by means of discounts with respect to any participation interests
issued or sold, and other fees paid to a Person that is not a Restricted
Subsidiary, in connection with any Receivables Facility.

                  "REFINANCE" means, in respect of any Debt, to refinance,
extend, renew, refund, repay, prepay, repurchase, redeem, defease or retire, or
to issue other Debt in exchange or replacement for, such Debt. "Refinanced" and
"Refinancing" shall have correlative meanings.

                  "REFINANCING DEBT" means any Debt that Refinances any other
Debt, including any successive Refinancings, so long as:

                  (a) such Debt is in an aggregate principal amount (or if
         incurred with original issue discount, an aggregate issue price) not in
         excess of the sum of

                           (1) the aggregate principal amount then outstanding
                  (or if incurred with original issue discount, the aggregate
                  accreted value at the date of such Refinancing) of the Debt
                  being Refinanced and

                           (2) an amount necessary to pay any fees and expenses,
                  including premiums and defeasance costs, related to such
                  Refinancing;

                                       25
<PAGE>   34

                  (b) the Average Life of such Debt is equal to or greater than
         the Average Life of the Debt being Refinanced;

                  (c) the Stated Maturity of such Debt is no earlier than the
         Stated Maturity of the Debt being Refinanced; and

                  (d) with respect to Debt that is being Refinanced that is
         subordinate to the Notes or the Subsidiary Guarantees, such Refinancing
         Debt shall be subordinate to the Notes or the Subsidiary Guarantees at
         least to the same extent and in the same manner as the Debt being
         Refinanced;

         PROVIDED, HOWEVER, that in the case of a Refinancing of Debt referred
         to in clause (k) of the definition of "Permitted Debt," no cash
         interest is payable on such Refinanced Debt prior to July 15, 2005; and
         PROVIDED FURTHER, HOWEVER, that Refinancing Debt shall not include:

                           (x) Debt of a Subsidiary that is not a Subsidiary
                  Guarantor that Refinances Debt of the Company or a Subsidiary
                  Guarantor; or

                           (y) Debt of the Company or a Restricted Subsidiary
                  that Refinances Debt of an Unrestricted Subsidiary.

                  "REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated as of July 12, 2001 by and among the Company and the other
parties named on the signature pages thereof, as such agreement may be amended,
modified or supplemented from time to time.

                  "REGULATION S" means Regulation S promulgated under the
Securities Act.

                  "REGULATION S GLOBAL NOTE" means the Global Note representing
the Notes offered and sold outside the United States in reliance on Regulation
S.

                  "REPAY" means, in respect of any Debt, to repay, prepay,
repurchase, redeem, legally defease or otherwise retire such Debt. "Repayment"
and "Repaid shall have correlative meanings. For purposes of Section 4.10, Debt
shall be considered to have been Repaid only to the extent the related loan
commitment, if any, shall have been permanently reduced in connection therewith.

                  "REPRESENTATIVE" means the trustee, agent or representative
expressly authorized to act in such capacity, if any, for an issue of Designated
Senior Debt.

                  "RESPONSIBLE OFFICER" when used with respect to the Trustee,
means any officer within the corporate trust department of the Trustee (or any
successor group of the Trustee) or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

                                       26
<PAGE>   35

                  "RESTRICTED DEFINITIVE NOTE" means a Definitive Note bearing
the Restricted Notes Legend.

                  "RESTRICTED GLOBAL NOTE" means a Global Note bearing the
Restricted Notes Legend.

                  "RESTRICTED NOTES LEGEND" means the legend set forth in
Section 2.06(g)(i) to be placed on all Notes issued under this Indenture except
where otherwise permitted by the provisions of this Indenture.

                  "RESTRICTED PAYMENT" means:

                  (a) any dividend or distribution (whether made in cash,
         securities or other Property) declared or paid on or with respect to
         any shares of Capital Stock of the Company or any Restricted Subsidiary
         (including any payment in connection with any merger or consolidation
         with or into the Company or any Restricted Subsidiary), except for any
         dividend or distribution that is made solely to the Company or a
         Restricted Subsidiary (and, if such Restricted Subsidiary is not a
         Wholly Owned Restricted Subsidiary, to the other shareholders of such
         Restricted Subsidiary on a pro rata basis or on a basis that results in
         the receipt by the Company or a Restricted Subsidiary of dividends or
         distributions of greater value than it would receive on a pro rata
         basis) or any dividend or distribution payable solely in shares of
         Capital Stock (other than Disqualified Capital Stock) of the Company;

                  (b) the purchase, repurchase, redemption, acquisition or
         retirement for value of any Capital Stock of the Company or any
         Restricted Subsidiary (other than from the Company or a Restricted
         Subsidiary) or any securities exchangeable for or convertible into any
         such Capital Stock, including the exercise of any option to exchange
         any Capital Stock (other than for or into Capital Stock of the Company
         that is not Disqualified Capital Stock), but excluding the conversion
         of any Capital Stock, Debt or other securities of the Company into
         Capital Stock of the Company (other than Disqualified Capital Stock);

                  (c) the purchase, repurchase, redemption, acquisition or
         retirement for value, prior to the date for any scheduled maturity,
         sinking fund or amortization or other installment payment, of any
         Subordinated Obligation (other than the purchase, repurchase or other
         acquisition of any Subordinated Obligation purchased in anticipation of
         satisfying a scheduled maturity, sinking fund or amortization or other
         installment obligation, in each case due within one year of the date of
         acquisition); or

                  (d) any Investment (other than Permitted Investments) in any
         Person.

                  "RESTRICTED PERIOD" means the 40 consecutive days beginning on
and including the later of (i) the commencement of the offering of the Notes to
persons other than distributors (as defined in Regulation S) in reliance on
Regulation S and (ii) the date of the original issuance of the Notes.

                                       27
<PAGE>   36

                  "RESTRICTED SUBSIDIARY" means any Subsidiary of the Company
other than an Unrestricted Subsidiary.

                  "RULE 144" means Rule 144 promulgated under the Securities
Act.

                  "RULE 144A" means Rule 144A promulgated under the Securities
Act.

                  "RULE 501" means Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.

                  "RULE 903" means Rule 903 promulgated under the Securities
Act.

                  "RULE 904" means Rule 904 promulgated under the Securities
Act.

                  "S&P" means Standard & Poor's Ratings Service or any successor
to the rating agency business thereof.

                  "SALE AND LEASEBACK TRANSACTION" means any direct or indirect
arrangement relating to Property now owned or hereafter acquired whereby the
Company or a Restricted Subsidiary transfers such Property to another Person and
the Company or a Restricted Subsidiary leases it from such Person.

                  "SEC" means the United States Securities and Exchange
Commission as constituted from time to time or any successor performing
substantially the same functions.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

                  "SENIOR CREDIT FACILITY" means the credit agreement, dated as
of the date the Notes are issued, by and among the Company, Citicorp USA, Inc.,
as Administrative Agent, and the several banks and other financial institutions
or entities from time to time parties thereto, including any related notes,
collateral documents, letters of credit and documentation and guarantees and any
appendices, exhibits or schedules to any of the foregoing, as any or all of such
agreements may be in effect from time to time, in each case, as any or all of
such agreements (or any other agreement that renews, refunds, refinances,
restructures, replaces, repays or extends any or all of such agreements) may be
amended, restated, modified or supplemented from time to time, or renewed,
refunded, refinanced, restructured, replaced, repaid or extended from time to
time, whether with the original agents and lenders or other agents and lenders
or otherwise, and whether PROVIDED under the original credit agreement or one or
more other credit agreements or otherwise.

                  "SENIOR DEBT" of the Company means:

                  (a) all Obligations consisting of the principal, premium, if
         any, and accrued and unpaid interest (including interest accruing on or
         after the filing of any petition in bankruptcy or for reorganization

                                       28
<PAGE>   37

         relating to the Company at the rate specified in the agreement or
         instrument evidencing such Debt, whether or not such interest is
         allowed in such proceeding) and any other Obligation in respect of

                           (1) the Credit Facilities,

                           (2) Debt of the Company for borrowed money and

                           (3) Debt of the Company evidenced by notes,
                  debentures, bonds or other similar instruments permitted under
                  this Indenture for the payment of which the Company is
                  responsible or liable;

                  (b) all Capital Lease Obligations of the Company and all
         Attributable Debt in respect of Sale and Leaseback Transactions entered
         into by the Company;

                  (c) all obligations of the Company (1) for the reimbursement
         of any obligor on any letter of credit, bankers' acceptance or similar
         credit transaction, (2) under Interest Rate Agreements or (3) issued or
         assumed as the deferred purchase price of Property and all conditional
         sale obligations of the Company and all obligations under any title
         retention agreement permitted under this Indenture; and

                  (d) all obligations of other Persons of the type referred to
         in clauses (a), (b) and (c) for the payment of which the Company is
         responsible or liable as Guarantor;

PROVIDED, HOWEVER, that Senior Debt shall not include:

                  (A) Debt of the Company that is by its terms subordinate or
         pari passu in right of payment to the Notes, including any Senior
         Subordinated Debt or any Subordinated Obligations;

                  (B) any Debt incurred in violation of the provisions of this
         Indenture;

                  (C) accounts payable or any other obligations of the Company
         to trade creditors created or assumed by the Company in the ordinary
         course of business in connection with the obtaining of materials or
         services (including Guarantees thereof or instruments evidencing such
         liabilities and obligations with respect to Film Contracts);

                  (D) any liability for federal, state, local or other taxes
         owed or owing by the Company;

                  (E) any obligation of the Company to any Subsidiary;

                  (F) any obligations with respect to any Capital Stock of the
         Company; or

                                       29
<PAGE>   38

                  (G) any Debt that does not constitute Senior Debt under the
         Exchange Indentures, for so long as any Exchange Debentures are
         outstanding or issuable thereunder (it being understood that, in any
         event, Obligations under the Senior Credit Facility constitute Senior
         Debt).

                  "SENIOR SUBORDINATED DEBT" of the Company means the Notes, the
Exchange Debentures (or any Debt ranking pari passu with the Exchange
Debentures) and any other subordinated Debt of the Company that specifically
provides that such Debt is to rank pari passu with the Notes and is not
subordinated by its terms to any other subordinated Debt or other obligation of
the Company which is not Senior Debt. "Senior Subordinated Debt" of any
Subsidiary Guarantor has a correlative meaning and includes any guarantee by
such Subsidiary Guarantor of Exchange Debentures (or any guarantee by such
Subsidiary Guarantor ranking pari passu therewith).

                  "SHELF REGISTRATION STATEMENT" means the Shelf Registration
Statement as defined in the Registration Rights Agreement.

                  "SIGNIFICANT SUBSIDIARY" means any Subsidiary that would be a
"SIGNIFICANT SUBSIDIARY" of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the Commission.

                  "SPECIAL INTEREST" means all special interest then owing
pursuant to paragraph 1 of the Notes.

                  "SPECTRUM SALE" means any sale, lease, transfer, license or
other disposition (or series of related sales, leases, transfers, licenses or
dispositions), with or without the consent of the Company or any Restricted
Subsidiary, of any broadcast license issued by the FCC pursuant to or in
connection with either: (a) the FCC's upper 700 MHz (746-764 MHz and 776-794
MHz) band auction or (b) the FCC's lower 700 MHz (698-746 MHz) band auction,
PROVIDED that, in each case, the expected use of such license shall not include
the transmission of a television signal.

                  "STATED MATURITY" means, with respect to any security, the
date specified in such security as the fixed date on which the payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).

                  "SUBORDINATED OBLIGATION" means any Debt of the Company or any
Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter
incurred) that is subordinate or junior in right of payment to the Notes or the
applicable Subsidiary Guarantee pursuant to a written agreement to that effect
or otherwise pursuant to the terms of such Debt.

                  "SUBSIDIARY" means, in respect of any Person, any corporation,
company (including any limited liability company), association, partnership,
joint venture or other business entity of which a majority of the total voting

                                       30
<PAGE>   39

power of the Voting Stock is at the time owned or controlled, directly or
indirectly, by:

                  (a) such Person;

                  (b) such Person and one or more Subsidiaries of such Person;
         or

                  (c) one or more Subsidiaries of such Person.

                  "SUBSIDIARY GUARANTOR" means each Domestic Restricted
Subsidiary and any other Person that becomes a Subsidiary Guarantor pursuant to
Section 4.14.

                  "SUBSIDIARY GUARANTEE" means a Guarantee on the terms set
forth in this Indenture by a Subsidiary Guarantor of the Company's obligations
with respect to the Notes.

                  "TEMPORARY CASH INVESTMENTS" means any of the following:

                  (a) Investments in U.S. Government Obligations maturing within
         365 days of the date of acquisition thereof;

                  (b) Investments in time deposit accounts, certificates of
         deposit and money market deposits maturing within 90 days of the date
         of acquisition thereof issued by a bank or trust company organized
         under the laws of the United States of America or any state thereof
         having capital, surplus and undivided profits aggregating in excess of
         $500.0 million and whose long-term debt is rated "A-3" or "A-" or
         higher according to Moody's or S&P (or such similar equivalent rating
         by at least one "nationally recognized statistical rating organization"
         (as defined in Rule 436 under the Securities Act));

                  (c) repurchase obligations with a term of not more than 30
         days for underlying securities of the types described in clause (a)
         entered into with

                           (1) a bank meeting the qualifications described in
                  clause (b) above or

                           (2) any primary government securities dealer
                  reporting to the Market Reports Division of the Federal
                  Reserve Bank of New York;

                  (d) Investments in commercial paper, maturing not more than 90
         days after the date of acquisition, issued by a corporation (other than
         an Affiliate of the Company) organized and in existence under the laws
         of the United States of America with a rating at the time as of which
         any Investment therein is made of "P-1" (or higher) according to
         Moody's or "A-1" (or higher) according to S&P (or such similar
         equivalent rating by at least one "nationally recognized statistical
         rating organization" (as defined in Rule 436 under the Securities
         Act)); and

                                       31
<PAGE>   40

                  (e) direct obligations (or certificates representing an
         ownership interest in such obligations) of any state of the United
         States of America (including any agency or instrumentality thereof) for
         the payment of which the full faith and credit of such state is pledged
         and which are not callable or redeemable at the issuer's option,
         PROVIDED that

                           (1) the long-term debt of such state is rated "A-3"
                  or "A-" or higher according to Moody's or S&P (or such similar
                  equivalent rating by at least one "nationally recognized
                  statistical rating organization" (as defined in Rule 436 under
                  the Securities Act)) and

                           (2) such obligations mature within 180 days of the
                  date of acquisition thereof.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S. code
ss.ss. 77aaa-77bbbb) as in effect on the date of this Indenture (except as
provided in Section 8.03 hereof).

                  "TOWER ASSETS" means the broadcast towers, transmitters and
antennas and related real property on which they are situated owned by the
Company or any of its Subsidiaries.

                  "TREASURY RATE" means, as of any redemption date, the yield to
maturity as of such redemption date of United States Treasury securities with a
constant maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) that has become publicly available at least two
business days prior to the redemption date (or, if such statistical release is
no longer published, any publicly available source of similar market data)) most
nearly equal to the period from the redemption date to July 15, 2005; PROVIDED,
HOWEVER, that if the period from the redemption date to July 15, 2005 is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used.

                  "TRUSTEE" means the party named as such in this Indenture
until a successor replaces it pursuant to this Indenture and thereafter means
the successor.

                  "UNRESTRICTED DEFINITIVE NOTE" means one or more Definitive
Notes that do not bear and are not required to bear the Restricted Notes Legend.

                  "UNRESTRICTED GLOBAL NOTE" means a permanent global Note
substantially in the form of Exhibit A attached hereto that bears the Global
Note Legend and that has the "Schedule of Exchanges of Interests in the Global
Note" attached thereto, and that is deposited with or on behalf of and
registered in the name of the Depository, representing a series of Notes that do
not bear the Restricted Notes Legend.

                  "UNRESTRICTED SUBSIDIARY" means:

                  (a) any Subsidiary of the Company that is designated after the
         Issue Date as an Unrestricted Subsidiary as permitted or required

                                       32
<PAGE>   41

         pursuant to Section 4.13 and is not thereafter redesignated as a
         Restricted Subsidiary as permitted pursuant thereto; and

                  (b) any Subsidiary of an Unrestricted Subsidiary.

                  "U.S. GOVERNMENT OBLIGATIONS" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable or redeemable at the issuer's option.

                  "VOTING STOCK" of any Person means all classes of Capital
Stock or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof.

                  "WHOLLY OWNED RESTRICTED SUBSIDIARY" means, at any time, a
Restricted Subsidiary all of the Voting Stock of which (except directors'
qualifying shares) is at such time owned, directly or indirectly, by the Company
or one or more Wholly Owned Subsidiaries of the Company.

Section 1.02.     OTHER DEFINITIONS.

                  The definitions of the following terms may be found in the
sections indicated as follows:
<TABLE>
<CAPTION>

                  TERM                                                                      DEFINED IN SECTION
                  ----                                                                      ------------------
<S>                                                                                               <C>
"AFFILIATE TRANSACTION"................................................                           4.11
"AGENT MEMBERS"........................................................                           2.14
"ALLOCABLE EXCESS PROCEEDS"............................................                           4.10
"ALLOCABLE SPECTRUM PROCEEDS"..........................................                           4.10
"AUTHENTICATION ORDER".................................................                           2.02
"BANKRUPTCY LAW".......................................................                           6.01
"BUSINESS DAY".........................................................                          12.08
"CHANGE OF CONTROL OFFER"..............................................                           4.18
"CHANGE OF CONTROL PAYMENT DATE".......................................                           4.18
"CHANGE OF CONTROL PURCHASE PRICE".....................................                           4.18
"COVENANT DEFEASANCE"..................................................                           9.03
"CUSTODIAN"............................................................                           6.01
"DTC"..................................................................                           2.03
"EVENT OF DEFAULT".....................................................                           6.01
"EXCESS PROCEEDS"......................................................                           4.10
"GUARANTEE PAYMENT BLOCKAGE PERIOD"....................................                          10.08
"GUARANTOR REPRESENTATIVE".............................................                          10.08
"IAI GLOBAL NOTE"......................................................                           2.01
"INITIAL BLOCKAGE PERIOD"..............................................                          11.03

</TABLE>

                                       33
<PAGE>   42
<TABLE>
<CAPTION>

                  TERM                                                                      DEFINED IN SECTION
                  ----                                                                      ------------------
<S>                                                                                               <C>
"INITIAL GUARANTEE BLOCKAGE PERIOD"....................................                          10.08
"LEGAL DEFEASANCE".....................................................                           9.02
"LEGAL HOLIDAY"........................................................                          12.08
"PAYING AGENT".........................................................                           2.03
"PAYMENT BLOCKAGE PERIOD"..............................................                          11.03
"PREPAYMENT OFFER".....................................................                           4.10
"PURCHASE AGREEMENT"...................................................                           2.01
"REGISTRAR"............................................................                           2.03
"REINVESTMENT DATE"....................................................                           4.09
"REPRESENTATIVE".......................................................                          11.03
"REQUIRED FILING DATES"................................................                           4.02
"SPECTRUM PREPAYMENT OFFER"............................................                           4.10
"SPECTRUM PROCEEDS"....................................................                           4.10
"SURVIVING PERSON".....................................................                           5.01
</TABLE>

Section 1.03.     INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

                  Whenever this Indenture refers to a provision of the TIA, the
portion of such provision required to be incorporated herein in order for this
Indenture to be qualified under the TIA is incorporated by reference in and made
a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings:

                  "COMMISSION" means the SEC.

                  "INDENTURE SECURITIES" means the Notes.

                  "INDENTURE SECURITYHOLDER" means a Noteholder.

                  "INDENTURE TO BE QUALIFIED" means this Indenture.

                  "INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the
Trustee.

                  "OBLIGOR ON THE INDENTURE SECURITIES" means the Company, the
Guarantors or any other obligor on the Notes.

                  All other terms used in this Indenture that are defined by the
TIA, defined in the TIA by reference to another statute or defined by SEC rule
have the meanings therein assigned to them.

Section 1.04.     RULES OF CONSTRUCTION.

                  Unless the context otherwise requires:

                  (1) a term has the meaning assigned to it herein, whether
         defined expressly or by reference;

                                       34
<PAGE>   43

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (3) "OR" is not exclusive;

                  (4) words in the singular include the plural, and in the
         plural include the singular; and

                  (5) words used herein implying any gender shall apply to every
         gender.

                                   ARTICLE 2

                                    THE NOTES

Section 2.01.     FORM AND DATING.

                  (a) GENERAL. The Notes and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit A hereto. The
Initial Notes issued on the date hereof will be (i) offered and sold by the
Company pursuant to the Purchase Agreement dated June 29, 2001 (the "PURCHASE
AGREEMENT") and (ii) distributed initially only to (A) QIBs in reliance on Rule
144A and (B) Non-U.S. Persons in reliance on Regulation S. Such Initial Notes
may thereafter be transferred to, among others, QIBs, purchasers in reliance on
Regulation S and, as set forth below, IAIs in accordance with Rule 501. The
Notes may have notations, legends or endorsements required by law, stock
exchange rule or usage. Each Note shall be dated the date of its authentication.
The Notes shall be in denominations of $1,000 and integral multiples thereof.

                  The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be
controlling.

                  (b) GLOBAL NOTES. The Notes issued in global form, without
interest coupons, shall be substantially in the form of Exhibit A attached
hereto (including the Global Note Legend thereon and the "Schedule of Exchanges
of Interests in the Global Note" attached thereto).

                  (i) The Notes offered and sold to QIBs in reliance on Rule
         144A shall be issued initially in the form of one or more 144A Global
         Notes, which shall be deposited with, or on behalf of, DTC, or will
         remain in the custody of the Trustee pursuant to an agreement between
         DTC and the Trustee.

                  (ii) The Notes offered and sold in reliance on Regulation S
         shall be issued initially in the form of one or more Regulation S
         Global Notes, which shall be deposited with, or on behalf of, a
         custodian for DTC, as described in (i) above, for credit to the

                                       35
<PAGE>   44

         respective accounts of the purchasers (or to such other accounts as
         they may direct) at Euroclear or Clearstream.

                  (iii) In connection with the resale of Notes to an
         Institutional Accredited Investor, beneficial interests in any of the
         Global Notes may be exchanged for interests in a separate note in
         registered form, without interest coupons (the "IAI GLOBAL NOTE"),
         which will be deposited with, or on behalf of, a custodian for DTC as
         described in (i) and (ii) above.

                  (iv) Unrestricted Global Notes shall be issued in accordance
         with Section 2.06(b)(v), 2.06(d)(ii), 2.06(d)(iii) and 2.06(f) and
         shall be deposited, duly executed by the Company and authenticated by
         the Trustee as hereinafter provided.

                  (v) Notes issued in definitive form shall be substantially in
         the form of Exhibit A attached hereto (but without the Global Note
         Legend thereon and without the "Schedule of Exchanges of Interests in
         the Global Note" attached thereto).

                  Each Global Note shall represent such of the outstanding Notes
as shall be specified therein and each shall provide that it shall represent the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemptions. Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

Section 2.02.     EXECUTION AND AUTHENTICATION.

                  The Notes shall be executed on behalf of the Company by two
Officers of the Company or an Officer and an Assistant Secretary of the Company.
Such signature may be either manual or facsimile.

                  If an Officer whose signature is on a Note no longer holds
that office at the time the Trustee authenticates the Note, the Note shall be
valid nevertheless.

                  A Note shall not be valid until the Trustee manually signs the
certificate of authentication on the Note. Such signature shall be conclusive
evidence that the Note has been authenticated under this Indenture.

                  The Trustee or an authenticating agent shall authenticate
Notes for original issue in the aggregate principal amount of up to $200,000,000
upon a Company Request. The aggregate principal amount of Notes outstanding at
any time may not exceed such amount except as provided in Section 2.07 hereof.

                                       36
<PAGE>   45

                  The Trustee may appoint an authenticating agent to
authenticate Notes. An authenticating agent may authenticate Notes whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same right as an Agent to deal with the Company or an Affiliate.

                  The Trustee shall have the right to decline to authenticate
and deliver any Notes under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if the Trustee
in good faith shall determine that such action would expose the Trustee to
personal liability to existing Holders.

Section 2.03.     REGISTRAR AND PAYING AGENT.

                  The Company shall maintain an office or agency where Notes may
be presented for registration of transfer or for exchange ("Registrar"), an
office or agency located in the Borough of Manhattan, The City of New York,
State of New York where Notes may be presented for payment ("Paying Agent") and
an office or agency where notices and demands to or upon the Company in respect
of the Notes and this Indenture may be served. The Registrar shall keep a
register of the Notes and of their transfer and exchange. The Company may have
one or more co-registrars and one or more additional paying agents. Neither the
Company nor any Affiliate may act as Paying Agent. The Company may change any
Paying Agent, Registrar or co-registrar without notice to any Holder.

                  The Company shall enter into an appropriate agency agreement
with any Registrar or Paying Agent not a party to this Indenture. The agreement
shall implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any such Agent. If
the Company fails to maintain a Registrar or Paying Agent, or agent for service
of notices and demands, or fails to give the foregoing notice, the Trustee shall
act as such. The Company initially appoints the Trustee as Registrar, Paying
Agent and agent for service of notices and demands in connection with the Notes.

Section 2.04.     PAYING AGENT TO HOLD MONEY IN TRUST.

                  On or before each due date of the principal of and interest on
any Notes, the Company shall deposit with the Paying Agent a sum sufficient to
pay such principal and interest so becoming due. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and the
Trustee may at any time during the continuance of any Payment Default, upon
written request to a Paying Agent, require such Paying Agent to forthwith pay to
the Trustee all sums so held in trust by such Paying Agent together with a
complete accounting of such sums. Upon doing so, the Paying Agent shall have no
further liability for the money.

Section 2.05.     HOLDER LISTS.

                  The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA ss. 312(a). If the

                                       37
<PAGE>   46

Trustee is not the Registrar, the Company shall furnish to the Trustee at least
seven Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Company shall otherwise comply with TIA ss. 312(a).

Section 2.06.     TRANSFER AND EXCHANGE.

                  (a) TRANSFER AND EXCHANGE OF GLOBAL NOTES. A Global Note may
not be transferred as a whole except by the Depository to a nominee of the
Depository, by a nominee of the Depository to the Depository or to another
nominee of the Depository, or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository. All Global Notes
will be exchanged by the Company for Definitive Notes if (i) the Company
delivers to the Trustee notice from the Depository that it is unwilling or
unable to continue to act as Depository or that it ceases to be a clearing
agency registered under the Exchange Act and, in either case, a successor
Depository is not appointed by the Company within 90 days after the date of such
notice from the Depository or of such cessation, (ii) the Company in its sole
discretion determines that the Global Notes (in whole but not in part) should be
exchanged for Definitive Notes and delivers a written notice to such effect to
the Trustee or (iii) an Event of Default has occurred or is continuing. Upon the
occurrence of any of the preceding events in (i), (ii) or (iii) above,
Definitive Notes shall be issued in such names as the Depository shall instruct
the Trustee. Global Notes also may be exchanged or replaced, in whole or in
part, as provided in Sections 2.07 and 2.09 hereof. Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.09 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note. A
Global Note may not be exchanged for another Note other than as provided in this
Section 2.06(a), however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

                  (b) TRANSFER AND EXCHANGE OF BENEFICIAL INTERESTS IN THE
GLOBAL NOTES. The transfer and exchange of beneficial interests in the Global
Notes shall be effected through the Depository, in accordance with the
provisions of this Indenture and the Applicable Procedures. Beneficial interests
in the Restricted Global Notes shall be subject to restrictions on transfer
comparable to those set forth herein to the extent required by the Securities
Act. Transfers of beneficial interests in the Global Notes also shall require
compliance with subparagraphs (i) through (v) below, as applicable, as well as
one or more of the other following subparagraphs, as applicable:

                  (i) TRANSFER OF BENEFICIAL INTERESTS IN THE SAME GLOBAL NOTE.
         Beneficial interests in any Restricted Global Note may be transferred
         to Persons who take delivery thereof in the form of a beneficial
         interest in the same Restricted Global Note in accordance with the
         transfer restrictions set forth in the Restricted Notes Legend.
         Beneficial interests in any Unrestricted Global Note may be transferred
         to Persons who take delivery thereof in the form of a beneficial
         interest in an Unrestricted Global Note. No written orders or

                                       38
<PAGE>   47

         instructions shall be required to be delivered to the Registrar to
         effect the transfers described in this Section 2.06(b)(i).

                  (ii) ALL OTHER TRANSFERS AND EXCHANGES OF BENEFICIAL INTERESTS
         IN GLOBAL NOTES. In connection with all transfers and exchanges of
         beneficial interests that are not subject to Section 2.06(b)(i) above,
         the transferor of such beneficial interest must deliver to the
         Registrar either (A)(1) a written order from a Participant or an
         Indirect Participant given to the Depository in accordance with the
         Applicable Procedures directing the Depository to credit or cause to be
         credited a beneficial interest in another Global Note in an amount
         equal to the beneficial interest to be transferred or exchanged and (2)
         instructions given in accordance with the Applicable Procedures
         containing information regarding the Participant account to be credited
         with such increase or (B)(1) a written order from a Participant or an
         Indirect Participant given to the Depository in accordance with the
         Applicable Procedures directing the Depository to cause to be issued a
         Definitive Note in an amount equal to the beneficial interest to be
         transferred or exchanged and (2) instructions given by the Depository
         to the Registrar containing information regarding the Person in whose
         name such Definitive Note shall be registered to effect the transfer or
         exchange referred to in (1) above. Upon consummation of an Exchange
         Offer by the Company in accordance with Section 2.06(f) hereof, the
         requirements of this Section 2.06(b)(ii) shall be deemed to have been
         satisfied upon receipt by the Registrar of the instructions contained
         in the Letter of Transmittal delivered by the Holder of such beneficial
         interests in the Restricted Global Notes. Upon satisfaction of all of
         the requirements for transfer or exchange of beneficial interests in
         Global Notes contained in this Indenture and the Notes or otherwise
         applicable under the Securities Act, the Trustee shall adjust the
         principal amount of the relevant Global Note(s) pursuant to Section
         2.06(h) hereof. Transfers by an owner of a beneficial interest in the
         Rule 144A Global or the IAI Global Note to a transferee who takes
         delivery of such interest through the Regulation S Global Note, whether
         before or after the expiration of the Restricted Period, shall be made
         only upon receipt by the Trustee of a certification from the transferor
         to the effect that such transfer is being made in accordance with
         Regulation S or (if available) Rule 144 under the Securities Act and
         that, if such transfer is being made prior to the expiration of the
         Restricted Period, the interest transferred shall be held immediately
         thereafter through Euroclear or Clearstream. In the case of a transfer
         of a beneficial interest in either the Regulation S Global Note or the
         Rule 144A Global Note for an interest in the IAI Global Note, the
         transferee must furnish to the Trustee a signed letter substantially in
         the form of Exhibit D.

                  (iii) RESTRICTIONS ON TRANSFER OF REGULATION S GLOBAL NOTE.

                           (A) Prior to the expiration of the Restricted Period,
                  interests in the Regulation S Global Note may only be held
                  through Euroclear or Clearstream. Prior to the expiration of
                  the Restricted Period, transfers by an owner of a beneficial
                  interest in the Regulation S Global Note to a transferee who
                  takes delivery of such interest through the Rule 144A Global
                  Note or the IAI Global Note shall be made only in accordance
                  with Applicable Procedures and upon receipt by the Trustee of
                  a written certification from the transferor of the beneficial

                                       39
<PAGE>   48

                  interest in the form provided by Exhibit B or as otherwise
                  provided by the Company in accordance with applicable law to
                  the effect that such transfer is being made to (i) a person
                  whom the transferor reasonably believes is a QIB within the
                  meaning of Rule 144A in a transaction meeting the requirements
                  of Rule 144A or (ii) an IAI purchasing for its own account, or
                  for the account of such an IAI, in a minimum principal amount
                  of the Notes of $250,000. Such written certification shall not
                  be required after the expiration of the Restricted Period. In
                  the case of a transfer of a beneficial interest in the
                  Regulation S Global Note for an interest in the IAI Global
                  Note, the transferee must furnish to the Trustee a signed
                  letter substantially in the form of Exhibit D.

                           (B) Upon the expiration of the Restricted Period,
                  beneficial ownership interests in the Regulation S Global Note
                  shall be transferable in accordance with applicable law and
                  the other terms of this Indenture.

                  (iv) OTHER TRANSFER OF BENEFICIAL INTERESTS TO ANOTHER
         RESTRICTED GLOBAL NOTE. A beneficial interest in any Restricted Global
         Note may be transferred to a Person who takes delivery thereof in the
         form of a beneficial interest in another Restricted Global Note if the
         transfer complies with the requirements of Section 2.06(b)(ii) above
         and the transferor delivers a certificate in the form of Exhibit B
         hereto.

                  (v) TRANSFER AND EXCHANGE OF BENEFICIAL INTERESTS IN GLOBAL
         NOTES TO DEFINITIVE NOTES. In the event that a Global Note is exchanged
         for Definitive Notes in accordance with the terms of this Indenture
         prior to the consummation of the Registered Exchange Offer or the
         effectiveness of the Shelf Registration Statement with respect to such
         Notes, such Notes may be exchanged only in accordance with such
         procedures as are substantially consistent with the provisions of this
         Section 2.06(c), (d) and (e) (including the certification requirements
         set forth therein intended to ensure that such transfers comply with
         Rule 144A, Regulation S or such other applicable exemption from
         registration under the Securities Act, as the case may be) and such
         other procedures as may from time to time be adopted by the Company
         reasonably necessary to comply with applicable law.

                  (vi) TRANSFER AND EXCHANGE OF BENEFICIAL INTERESTS IN A
         RESTRICTED GLOBAL NOTE FOR BENEFICIAL INTERESTS IN AN UNRESTRICTED
         GLOBAL NOTE. A beneficial interest in any Restricted Global Note may be
         exchanged by any holder thereof for a beneficial interest in an
         Unrestricted Global Note or transferred to a Person who takes delivery
         thereof in the form of a beneficial interest in an Unrestricted Global
         Note if the exchange or transfer complies with the requirements of
         Section 2.06(b)(ii) above and:

                                       40
<PAGE>   49

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of the beneficial interest to be
                  transferred, in the case of an exchange, or the transferee, in
                  the case of a transfer, certifies in the applicable Letter of
                  Transmittal or via the Depository's book entry system that it
                  is not (1) a broker-dealer, (2) a Person participating in the
                  distribution of the Exchange Notes or (3) a Person who is an
                  affiliate (as defined in Rule 144) of the Company;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                    (1) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a beneficial
                           interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(a)
                           thereof; or

                                    (2) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

         and, in each such case set forth in this subparagraph (D), if the
         Company or the Registrar so requests or if the Applicable Procedures so
         require, an Opinion of Counsel in form reasonably acceptable to the
         Registrar to the effect that such exchange or transfer is in compliance
         with the Securities Act and that the restrictions on transfer contained
         herein and in the Restricted Notes Legend are no longer required in
         order to maintain compliance with the Securities Act.

                  If any such transfer is effected pursuant to subparagraph (B)
or (D) above at a time when an Unrestricted Global Note has not yet been issued,
the Company shall issue and, upon receipt of a Company Request in accordance
with Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (B) or (D) above.

                  Beneficial interests in an Unrestricted Global Note cannot be
exchanged for, or transferred to Persons who take delivery thereof in the form
of, a beneficial interest in a Restricted Global Note.

                                       41
<PAGE>   50

                  (c) TRANSFER OR EXCHANGE OF BENEFICIAL INTERESTS FOR
DEFINITIVE NOTES.

                  (i) BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES TO
         RESTRICTED DEFINITIVE NOTES. If any holder of a beneficial interest in
         a Restricted Global Note proposes to exchange such beneficial interest
         for a Restricted Definitive Note or to transfer such beneficial
         interest to a Person who takes delivery thereof in the form of a
         Restricted Definitive Note, then, upon receipt by the Registrar of the
         following documentation:

                           (A) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for a Restricted Definitive Note, a certificate from
                  such holder in the form of Exhibit C hereto, including the
                  certifications in item (2)(a) thereof;

                           (B) if such beneficial interest is being transferred
                  to a QIB in accordance with Rule 144A under the Securities
                  Act, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications in item (1) thereof;

                           (C) if such beneficial interest is being transferred
                  to a Non-U.S. Person in an offshore transaction and in
                  accordance with Rule 903 or Rule 904 under the Securities Act,
                  a certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (2) thereof;

                           (D) if such beneficial interest is being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144 under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(a)
                  thereof;

                           (E) if such beneficial interest is being transferred
                  to an Institutional Accredited Investor in reliance on an
                  exemption from the registration requirements of the Securities
                  Act other than those listed in subparagraphs (B) through (D)
                  above, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications, certificates and Opinion
                  of Counsel required by item (3)(d) thereof, if applicable;

                           (F) if such beneficial interest is being transferred
                  to the Company or any of its Subsidiaries, a certificate to
                  the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                           (G) if such beneficial interest is being transferred
                  pursuant to an effective registration statement under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(c)
                  thereof,

         the Trustee shall cause the aggregate principal amount of the
         applicable Global Note to be reduced accordingly pursuant to Section

                                       42
<PAGE>   51

         2.06(h) hereof, and the Company shall execute and the Trustee shall
         authenticate and deliver to the Person designated in the instructions a
         Definitive Note in the appropriate principal amount. Any Definitive
         Note issued in exchange for a beneficial interest in a Restricted
         Global Note pursuant to this Section 2.06(c) shall be registered in
         such name or names and in such authorized denomination or denominations
         as the holder of such beneficial interest shall instruct the Registrar
         through instructions from the Depository and the Participant or
         Indirect Participant. The Trustee shall deliver such Definitive Notes
         to the Persons in whose names such Notes are so registered. Any
         Definitive Note issued in exchange for a beneficial interest in a
         Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear
         the Restricted Notes Legend and shall be subject to all restrictions on
         transfer contained therein.

                  (ii) BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES TO
         UNRESTRICTED DEFINITIVE NOTES. A holder of a beneficial interest in a
         Restricted Global Note may exchange such beneficial interest for an
         Unrestricted Definitive Note or may transfer such beneficial interest
         to a Person who takes delivery thereof in the form of an Unrestricted
         Definitive Note only if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of such beneficial interest, in the
                  case of an exchange, or the transferee, in the case of a
                  transfer, certifies in the applicable Letter of Transmittal
                  that it is not (1) a broker-dealer, (2) a Person participating
                  in the distribution of the Exchange Notes or (3) a Person who
                  is an affiliate (as defined in Rule 144) of the Company;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                    (1) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a Definitive
                           Note that does not bear the Restricted Notes Legend,
                           a certificate from such holder in the form of Exhibit
                           C hereto, including the certifications in item (1)(b)
                           thereof; or

                                    (2) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           Definitive Note that does not bear the Restricted
                           Notes Legend, a certificate from such holder in the
                           form of Exhibit B hereto, including the
                           certifications in item (4) thereof;

                                       43
<PAGE>   52

                  and, in each such case set forth in this subparagraph (D), if
                  the Company or the Registrar so requests or if the Applicable
                  Procedures so require, an Opinion of Counsel in form
                  reasonably acceptable to the Registrar to the effect that such
                  exchange or transfer is in compliance with the Securities Act
                  and that the restrictions on transfer contained herein and in
                  the Restricted Notes Legend are no longer required in order to
                  maintain compliance with the Securities Act.

                  (iii) BENEFICIAL INTERESTS IN UNRESTRICTED GLOBAL NOTES TO
         UNRESTRICTED DEFINITIVE NOTES. If any holder of a beneficial interest
         in an Unrestricted Global Note proposes to exchange such beneficial
         interest for a Definitive Note or to transfer such beneficial interest
         to a Person who takes delivery thereof in the form of a Definitive
         Note, then, upon satisfaction of the conditions set forth in Section
         2.06(b)(ii) hereof, the Trustee shall cause the aggregate principal
         amount of the applicable Global Note to be reduced accordingly pursuant
         to Section 2.06(h) hereof, and the Company shall execute and the
         Trustee shall authenticate and deliver to the Person designated in the
         instructions a Definitive Note in the appropriate principal amount. Any
         Definitive Note issued in exchange for a beneficial interest pursuant
         to this Section 2.06(c)(iii) shall be registered in such name or names
         and in such authorized denomination or denominations as the holder of
         such beneficial interest shall instruct the Registrar through
         instructions from the Depository and the Participant or Indirect
         Participant. The Trustee shall deliver such Definitive Notes to the
         Persons in whose names such Notes are so registered. Any Definitive
         Note issued in exchange for a beneficial interest pursuant to this
         Section 2.06(c)(iii) shall not bear the Restricted Notes Legend.

                  (d) TRANSFER AND EXCHANGE OF DEFINITIVE NOTES FOR BENEFICIAL
         INTERESTS.

                  (i) RESTRICTED DEFINITIVE NOTES TO BENEFICIAL INTERESTS IN
         RESTRICTED GLOBAL NOTES. If any Holder of a Restricted Definitive Note
         proposes to exchange such Note for a beneficial interest in a
         Restricted Global Note or to transfer such Restricted Definitive Note
         to a Person who takes delivery thereof in the form of a beneficial
         interest in a Restricted Global Note, then, upon receipt by the
         Registrar of the following documentation:

                           (A) if the Holder of such Restricted Definitive Note
                  proposes to exchange such Note for a beneficial interest in a
                  Restricted Global Note, a certificate from such Holder in the
                  form of Exhibit C hereto, including the certifications in item
                  (2)(b) thereof;

                           (B) if such Restricted Definitive Note is being
                  transferred to a QIB in accordance with Rule 144A under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                           (C) if such Restricted Definitive Note is being
                  transferred to a Non-U.S. Person in an offshore transaction
                  and in accordance with Rule 903 or Rule 904 under the

                                       44
<PAGE>   53

                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (2)
                  thereof;

                           (D) if such Restricted Definitive Note is being
                  transferred pursuant to an exemption from the registration
                  requirements of the Securities Act in accordance with Rule 144
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(a) thereof;

                           (E) if such Restricted Definitive Note is being
                  transferred to an Institutional Accredited Investor in
                  reliance on an exemption from the registration requirements of
                  the Securities Act other than those listed in subparagraphs
                  (B) through (D) above, a certificate to the effect set forth
                  in Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)(d)
                  thereof, if applicable;

                           (F) if such Restricted Definitive Note is being
                  transferred to the Company or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                           (G) if such Restricted Definitive Note is being
                  transferred pursuant to an effective registration statement
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(c) thereof,

         the Trustee shall cancel the Restricted Definitive Note and increase or
         cause to be increased the aggregate principal amount of the Restricted
         Global Note.

                  (ii) RESTRICTED DEFINITIVE NOTES TO BENEFICIAL INTERESTS IN
         UNRESTRICTED GLOBAL NOTES. A Holder of a Restricted Definitive Note may
         exchange such Note for a beneficial interest in an Unrestricted Global
         Note or transfer such Restricted Definitive Note to a Person who takes
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note only if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                                       45
<PAGE>   54

                           (D) the Registrar receives the following:

                                    (1) if the Holder of such Definitive Notes
                           proposes to exchange such Notes for a beneficial
                           interest in the Unrestricted Global Note, a
                           certificate from such Holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(c)
                           thereof; or

                                    (2) if the Holder of such Definitive Notes
                           proposes to transfer such Notes to a Person who shall
                           take delivery thereof in the form of a beneficial
                           interest in the Unrestricted Global Note, a
                           certificate from such Holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Company or the Registrar so requests or if the Applicable
                  Procedures so require, an Opinion of Counsel in form
                  reasonably acceptable to the Registrar to the effect that such
                  exchange or transfer is in compliance with the Securities Act
                  and that the restrictions on transfer contained herein and in
                  the Restricted Notes Legend are no longer required in order to
                  maintain compliance with the Securities Act.

                  Upon satisfaction of the conditions of any of the
         subparagraphs in this Section 2.06(d)(ii), the Trustee shall cancel the
         Definitive Notes and increase or cause to be increased the aggregate
         principal amount of the Unrestricted Global Note.

                  (iii) UNRESTRICTED DEFINITIVE NOTES TO BENEFICIAL INTERESTS IN
         UNRESTRICTED GLOBAL NOTES. A Holder of an Unrestricted Definitive Note
         may exchange such Note for a beneficial interest in an Unrestricted
         Global Note or transfer such Definitive Notes to a Person who takes
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note at any time. Upon receipt of a request for
         such an exchange or transfer, the Trustee shall cancel the applicable
         Unrestricted Definitive Note and increase or cause to be increased the
         aggregate principal amount of one of the Unrestricted Global Notes.

                  If any such exchange or transfer from a Definitive Note to a
         beneficial interest is effected pursuant to subparagraphs (ii)(B),
         (ii)(D) or (iii) above at a time when an Unrestricted Global Note has
         not yet been issued, the Company shall issue and, upon receipt of a
         Company Request in accordance with Section 2.02 hereof, the Trustee
         shall authenticate one or more Unrestricted Global Notes in an
         aggregate principal amount equal to the principal amount of Definitive
         Notes so transferred.

                  (e) TRANSFER AND EXCHANGE OF DEFINITIVE NOTES FOR DEFINITIVE
NOTES. Upon request by a Holder of Definitive Notes and such Holder's compliance
with the provisions of this Section 2.06(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of

                                       46
<PAGE>   55

transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

                  (i) RESTRICTED DEFINITIVE NOTES TO RESTRICTED DEFINITIVE
         NOTES. Any Restricted Definitive Note may be transferred to and
         registered in the name of Persons who take delivery thereof in the form
         of a Restricted Definitive Note if the Registrar receives the
         following:

                           (A) if the transfer will be made pursuant to Rule
                  144A under the Securities Act, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications in item (1) thereof;

                           (B) if the transfer will be made pursuant to Rule 903
                  or Rule 904, then the transferor must deliver a certificate in
                  the form of Exhibit B hereto, including the certifications in
                  item (2) thereof; and

                           (C) if the transfer will be made pursuant to any
                  other exemption, including any such transfer to an
                  Institutional Accredited Investor, from the registration
                  requirements of the Securities Act, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications, certificates and Opinion of
                  Counsel required by item (3) thereof, if applicable.

                  (ii) RESTRICTED DEFINITIVE NOTES TO UNRESTRICTED DEFINITIVE
         NOTES. Any Restricted Definitive Note may be exchanged by the Holder
         thereof for an Unrestricted Definitive Note or transferred to a Person
         or Persons who take delivery thereof in the form of an Unrestricted
         Definitive Note if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                           (B) any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C) any such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                       47
<PAGE>   56

                                    (1) if the Holder of such Restricted
                           Definitive Notes proposes to exchange such Notes for
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit C hereto,
                           including the certifications in item (1)(d) thereof;
                           or

                                    (2) if the Holder of such Restricted
                           Definitive Notes proposes to transfer such Notes to a
                           Person who shall take delivery thereof in the form of
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit B hereto,
                           including the certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Company or the Registrar so requests, an Opinion of
                  Counsel in form reasonably acceptable to the Company to the
                  effect that such exchange or transfer is in compliance with
                  the Securities Act and that the restrictions on transfer
                  contained herein and in the Restricted Notes Legend are no
                  longer required in order to maintain compliance with the
                  Securities Act.

                  (iii) UNRESTRICTED DEFINITIVE NOTES TO UNRESTRICTED DEFINITIVE
         NOTES. A Holder of Unrestricted Definitive Notes may transfer such
         Notes to a Person who takes delivery thereof in the form of an
         Unrestricted Definitive Note. Upon receipt of a request to register
         such a transfer, the Registrar shall register the Unrestricted
         Definitive Notes pursuant to the instructions from the Holder thereof.

                  (f) EXCHANGE OFFER. Upon the occurrence of the Exchange Offer
in accordance with the Registration Rights Agreement, the Company shall issue
and, upon receipt of a Company Request in accordance with Section 2.02, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
broker-dealers, (y) they are not participating in a distribution of the Exchange
Notes and (z) they are not affiliates (as defined in Rule 144) of the Company,
and accepted for exchange in the Exchange Offer and (ii) Definitive Notes in an
aggregate principal amount equal to the principal amount of the Restricted
Definitive Notes accepted for exchange in the Exchange Offer. Concurrently with
the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.

                  (g) LEGENDS. The following legends shall appear on the face of
all Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

                                       48
<PAGE>   57

                  (i) RESTRICTED NOTES LEGEND.

                           (A) Except as permitted by subparagraph (B) below,
                  each Global Note and each Definitive Note (and all Notes
                  issued in exchange therefor or substitution thereof) shall
                  bear the legend in substantially the following form:

                  "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE
                  SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER
                  THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
                  REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
                  OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
                  UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
                  SUCH REGISTRATION.

                  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
                  OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, BEFORE THE
                  DATE (THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO
                  YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
                  THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE
                  COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
                  SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) UNDER A
                  REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER
                  THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
                  ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
                  ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A
                  "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT
                  PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
                  QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
                  TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) UNDER
                  OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN
                  THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO
                  AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1),
                  (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
                  INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR
                  ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
                  ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
                  AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES

                                       49
<PAGE>   58

                  AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH
                  ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F)
                  UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
                  REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S
                  AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
                  TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE
                  DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
                  INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE
                  REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
                  RESTRICTION TERMINATION DATE."

                           (B) Notwithstanding the foregoing, any Global Note or
                  Definitive Note issued pursuant to subparagraphs (b)(vi),
                  (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f)
                  to this Section 2.06 (and all Notes issued in exchange
                  therefor or substitution thereof) shall not bear the
                  Restricted Notes Legend.

                  (ii) GLOBAL NOTE LEGEND. Each Global Note shall bear a legend
         in substantially the following form:

         "THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE
         INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
         BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
         PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE
         SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF
         THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT
         IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL
         NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
         SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
         TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF
         THE COMPANY."

                  (h) CANCELLATION AND/OR ADJUSTMENT OF GLOBAL NOTES. At such
time as all beneficial interests in a particular Global Note have been exchanged
for Definitive Notes or a particular Global Note has been redeemed, repurchased
or canceled in whole and not in part, each such Global Note shall be returned to
or retained and canceled by the Trustee in accordance with Section 2.10 hereof.
At any time prior to such cancellation, if any beneficial interest in a Global
Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depository at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest

                                       50
<PAGE>   59

in another Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depository at the direction of the Trustee to reflect such increase.

                  (i) GENERAL PROVISIONS RELATING TO TRANSFERS AND EXCHANGES.

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate Global Notes
         and Definitive Notes upon the Company's order or at the Registrar's
         request.

                  (ii) No service charge shall be made to a holder of a
         beneficial interest in a Global Note or to a Holder of a Definitive
         Note for any registration of transfer or exchange, but the Company may
         require payment of a sum sufficient to cover any transfer tax or
         similar governmental charge payable in connection therewith (other than
         any such transfer taxes or similar governmental charge payable upon
         exchange or transfer pursuant to the Exchange Offer (except as
         otherwise provided in the Registration Rights Agreement) or to Sections
         2.09, 4.10, 4.18 and 8.05 hereof).

                  (iii) The Registrar shall not be required to register the
         transfer of or exchange any Note selected for redemption in whole or in
         part, except the unredeemed portion of any Note being redeemed in part.

                  (iv) All Global Notes and Definitive Notes issued upon any
         registration of transfer or exchange of Global Notes or Definitive
         Notes shall be the valid obligations of the Company, evidencing the
         same debt, and entitled to the same benefits under this Indenture, as
         the Global Notes or Definitive Notes surrendered upon such registration
         of transfer or exchange.

                  (v) The Company shall not be required (A) to issue, to
         register the transfer of or to exchange any Notes during a period
         beginning at the opening of business 15 days before the day of any
         selection of Notes for redemption under Section 3.02 hereof and ending
         at the close of business on the day of selection or (B) to register the
         transfer of or to exchange a Note between a record date and the next
         succeeding Interest Payment Date.

                  (vi) Prior to due presentment for the registration of a
         transfer of any Note, the Trustee, any Agent and the Company may deem
         and treat the Person in whose name any Note is registered as the
         absolute owner of such Note for the purpose of receiving payment of
         principal of and interest on such Notes and for all other purposes, and
         none of the Trustee, any Agent or the Company shall be affected by
         notice to the contrary.

                  (vii) The Trustee shall authenticate Global Notes and
         Definitive Notes in accordance with the provisions of Section 2.02
         hereof.

                  (viii) All certifications, certificates and Opinions of
         Counsel required to be submitted to the Registrar pursuant to this
         Section 2.06 to effect a registration of transfer or exchange may be
         submitted by facsimile.

                                       51
<PAGE>   60

                  (ix) The Trustee shall have no obligation or duty to monitor,
         determine or inquire as to compliance with any restrictions on transfer
         imposed under this Indenture or under applicable law with respect to
         any transfer of any interest in any Note (including any transfers
         between or among Participants or beneficial owners of interests in any
         Global Note) other than to require delivery of such certificates and
         other documentation or evidence as are expressly required by, and to do
         so if and when expressly required by the terms of, this Indenture, and
         to examine the same to determine substantial compliance as to form with
         the express requirements hereof.

Section 2.07.     REPLACEMENT NOTES.

                  If a mutilated Note is surrendered to the Trustee or if the
Holder of a Note presents evidence to the satisfaction of the Company and the
Trustee that the Note has been lost, destroyed or wrongfully taken, the Company
shall issue and the Trustee shall authenticate a replacement Note if the
requirements of Section 8-405 of the New York Uniform Commercial Code as in
effect on the date of this Indenture are met. An indemnity bond shall be
required that is sufficient in the judgment of the Company and the Trustee to
protect the Company, the Trustee or any Agent from any loss which any of them
may suffer if a Note is replaced. In every case of destruction, loss or theft,
the applicant shall also furnish to the Company and to the Trustee evidence to
their satisfaction of the destruction, loss or theft of such Note and the
ownership thereof. The Company and the Trustee may charge for its expenses in
replacing a Note. Every replacement Note is an additional obligation of the
Company.

Section 2.08.     OUTSTANDING NOTES.

                  Notes outstanding at any time are all Notes authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, and those described in this Section 2.08 as not outstanding.

                  If a Note is replaced pursuant to Section 2.07, it ceases to
be outstanding until the Company and the Trustee receive proof satisfactory to
each of them that the replaced Note is held by a bona fide purchaser.

                  If a Paying Agent holds on a Redemption Date or Maturity Date
money sufficient to pay the principal of, premium, if any, and accrued interest
on Notes payable on that date, then on and after that date such Notes cease to
be outstanding and interest on them ceases to accrue.

                  Subject to Section 12.06, a Note does not cease to be
outstanding solely because the Company or an Affiliate holds the Note.

Section 2.09.     TEMPORARY NOTES.

                  Until certificates representing Notes are ready for delivery,
the Company may prepare and the Trustee shall authenticate temporary Notes.
Temporary Notes shall be substantially in the form, and shall carry all rights,
of definitive Notes but may have variations that the Company considers

                                       52
<PAGE>   61

appropriate for temporary Notes. Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate definitive Notes in exchange for
temporary Notes presented to it.

Section 2.10.     CANCELLATION.

                  The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Notes surrendered to them for transfer, exchange or payment. The Trustee
shall cancel and retain or, upon written request of the Company, may return to
the Company in accordance with its normal practice, all Notes surrendered for
transfer, exchange, payment or cancellation. Subject to Section 2.07 hereof, the
Company may not issue new Notes to replace Notes in respect of which it has
previously paid all principal, premium and interest accrued thereon, or
delivered to the Trustee for cancellation.

Section 2.11.     DEFAULTED INTEREST.

                  If the Company defaults in a payment of interest or Special
Interest, if any, on the Notes, it shall pay the defaulted amounts, plus any
interest payable on defaulted amounts pursuant to Section 4.01 hereof, to the
persons who are Holders on a subsequent special record date. The Company shall
fix the special record date and payment date in a manner satisfactory to the
Trustee and provide the Trustee at least 20 days notice of the proposed amount
of default interest to be paid and the special payment date. At least 15 days
before the special record date, the Company shall mail or cause to be mailed to
each Holder a notice that states the special record date, the payment date
(which shall be not less than five nor more than ten days after the special
record date), and the amount to be paid. In lieu of the foregoing procedures,
the Company may pay defaulted interest in any other lawful manner satisfactory
to the Trustee.

Section 2.12.     DEPOSIT OF MONEYS.

                  Prior to 10:00 a.m., New York City time, on each Interest
Payment Date and Maturity Date, the Company shall have deposited with the Paying
Agent in immediately available funds money sufficient to make cash payments, if
any, due on such Interest Payment Date or Maturity Date, as the case may be, in
a timely manner which permits the Trustee to remit payment to the Holders on
such Interest Payment Date or Maturity Date, as the case may be.

Section 2.13.     CUSIP NUMBER.

                  The Company in issuing the Notes may use a "CUSIP" number(s),
and if so, the Trustee shall use the CUSIP number(s) in notices of redemption or
exchange as a convenience to Holders, provided that any such notice may state
that no representation is made as to the correctness or accuracy of the CUSIP
number(s) printed in the notice or on the Notes, and that reliance may be placed
only on the other identification numbers printed on the Notes. The Company shall
promptly inform the Trustee of any change in the CUSIP number(s).

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<PAGE>   62

Section 2.14.     SPECIAL INTEREST.

                  If Special Interest is payable by the Company pursuant to
paragraph 1 of the Notes, the Company shall deliver to the Trustee a certificate
to that effect stating (i) the amount of such Special Interest that is payable
and (ii) the date on which such interest is payable. Unless and until a
Responsible Officer of the Trustee receives such a certificate or instruction or
direction from the Holders in accordance with the terms of the Indenture, the
Trustee may assume without inquiry that no Special Interest is payable. The
foregoing shall not prejudice the rights of the Holders with respect to their
entitlement to Special Interest as otherwise set forth in this Indenture or the
Notes and pursuing any action against the Company directly or otherwise
directing the Trustee to take any such action in accordance with the terms of
this Indenture and the Notes. If the Company has paid Special Interest directly
to the persons entitled to it, the Company shall deliver to the Trustee a
certificate setting forth the particulars of such payment.

                                   ARTICLE 3

                                   REDEMPTION

Section 3.01.     NOTICES TO TRUSTEE.

                  If the Company elects to redeem Notes pursuant to paragraph 6
of the Notes, (i) at least 30 days prior to the Redemption Date in the case of a
partial redemption, (ii) at least 30 days prior to the Redemption Date in the
case of a total redemption or (iii) during such other period as the Trustee may
agree to, the Company shall notify the Trustee in writing of the Redemption
Date, the principal amount of Notes to be redeemed and the redemption price, and
deliver to the Trustee an Officers' Certificate stating that such redemption
will comply with the conditions contained in paragraph 6 of the Notes, as
appropriate.

Section 3.02.     SELECTION BY TRUSTEE OF NOTES TO BE REDEEMED.

                  In the event that fewer than all of the Notes are to be
redeemed, the Trustee shall select the Notes to be redeemed, if the Notes are
listed on a national securities exchange, in accordance with the rules of such
exchange or, if the Notes are not so listed, on either a pro rata basis or by
lot, or such other method as it shall deem fair and equitable. The Trustee shall
promptly notify the Company of the Notes selected for redemption and, in the
case of any Notes selected for partial redemption, the principal amount thereof
to be redeemed. The Trustee may select for redemption portions of the principal
of Notes that have denominations larger than $1,000. Notes and portions thereof
the Trustee selects shall be redeemed in amounts of $1,000 or whole multiples of
$1,000. For all purposes of this Indenture unless the context otherwise
requires, provisions of this Indenture that apply to Notes called for redemption
also apply to portions of Notes called for redemption.

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<PAGE>   63

Section 3.03.     NOTICE OF REDEMPTION.

                  At least 90 days before a Redemption Date, the Company shall
mail, or cause to be mailed, a notice of redemption by first-class mail to the
Trustee and to each Holder of Notes to be redeemed at his or her last address as
the same appears on the registry books maintained by the Registrar pursuant to
Section 2.03 hereof.

                  The notice shall identify the Notes to be redeemed (including
the CUSIP number(s) thereof) and shall state:

                  (1) the Redemption Date;

                  (2) the redemption price (unless Notes are being redeemed
         pursuant to paragraph 6(b) of the Notes in which case the notice need
         only include the appropriate calculation of the redemption price and
         not the redemption price itself);

                  (3) if any Note is being redeemed in part, the portion of the
         principal amount of such Note to be redeemed and that, after the
         Redemption Date and upon surrender of such Note, a new Note or Notes in
         principal amount equal to the unredeemed portion will be issued;

                  (4) the name and address of the Paying Agent;

                  (5) that Notes called for redemption must be surrendered to
         the Paying Agent to collect the redemption price;

                  (6) that unless the Company defaults in making the redemption
         payment, interest on Notes called for redemption ceases to accrue on
         and after the Redemption Date;

                  (7) the paragraph of the Notes pursuant to which the Notes are
         being redeemed; and

                  (8) the aggregate principal amount of Notes that are being
         redeemed.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's sole expense.

                  The actual redemption price with respect to Notes being
redeemed pursuant to paragraph 6(b) of the Notes must be set forth in an
Officers' Certificate delivered to the Trustee no later than two business days
prior to the redemption date.

Section 3.04.     EFFECT OF NOTICE OF REDEMPTION.

                  Once the notice of redemption described in Section 3.03 is
mailed, Notes called for redemption become due and payable on the Redemption
Date and at the redemption price, including any premium, plus interest accrued
to the Redemption Date. Upon surrender to the Paying Agent, such Notes shall be
paid at the redemption price, including any premium, plus interest accrued to

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<PAGE>   64

the Redemption Date, provided that if the Redemption Date is after a regular
interest payment record date and on or prior to the Interest Payment Date, the
accrued interest shall be payable to the Holder of the redeemed Notes registered
on the relevant record date, and provided, FURTHER, that if a Redemption Date is
a Legal Holiday, payment shall be made on the next succeeding Business Day and
no interest shall accrue for the period from such Redemption Date to such
succeeding Business Day.

Section 3.05.     DEPOSIT OF REDEMPTION PRICE.

                  On or prior to 10:00 A.M., New York City time, on each
Redemption Date, the Company shall deposit with the Paying Agent in immediately
available funds money sufficient to pay the redemption price of and accrued
interest on all Notes to be redeemed on that date other than Notes or portions
thereof called for redemption on that date which have been delivered by the
Company to the Trustee for cancellation.

                  On and after any Redemption Date, if money sufficient to pay
the redemption price of and accrued interest on Notes called for redemption
shall have been made available in accordance with the preceding paragraph, the
Notes called for redemption will cease to accrue interest and the only right of
the Holders of such Notes will be to receive payment of the redemption price of
and, subject to the first proviso in Section 3.04, accrued and unpaid interest
on such Notes to the Redemption Date. If any Note called for redemption shall
not be so paid, interest will be paid, from the Redemption Date until such
redemption payment is made, on the unpaid principal of the Note and any interest
not paid on such unpaid principal, in each case, at the rate and in the manner
provided in the Notes.

Section 3.06.     NOTES REDEEMED IN PART.

                  Upon surrender of a Note that is redeemed in part, the Trustee
shall authenticate for a Holder a new Note equal in principal amount to the
unredeemed portion of the Note surrendered.

                                   ARTICLE 4

                                    COVENANTS

Section 4.01.     PAYMENT OF NOTES.

                  The Company shall pay the principal of and interest on the
Notes on the dates and in the manner provided in the Notes and this Indenture.
An installment of principal of or interest on the Notes shall be considered paid
on the date it is due if the Trustee or Paying Agent holds on that date money
designated for and sufficient to pay the installment. Interest will be computed
on the basis of a 360-day year comprised of twelve 30-day months and the actual
number of days elapsed. The Company shall pay all Special Interest, if any, in
the same manner on the dates and in the amounts set forth in the Notes.

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<PAGE>   65

                  The Company shall pay interest on overdue principal (including
post-petition interest in a proceeding under any Bankruptcy Law), and overdue
interest and Special Interest, to the extent lawful, at the rate specified in
the Notes.

Section 4.02.     SEC REPORTS.

                  (a) The Company will file with the SEC all information,
documents and reports to be filed with the SEC pursuant to Section 13 or 15(d)
of the Exchange Act, whether or not the Company is subject to such filing
requirements so long as the SEC will accept such filings. The Company shall also
comply with the provisions of TIA ss. 314(a).

                  (b) At the Company's expense, regardless of whether the
Company is required to file with the SEC or furnish such information, documents
and reports referred to in paragraph (a) above to its stockholders pursuant to
the Exchange Act, the Company shall cause such information, documents and
reports to be mailed to the Trustee at its address set forth in this Indenture
and to the Holders at their addresses appearing in the register of Notes
maintained by the Registrar within 15 days after it files them with the SEC or
such date as they would have been required to be filed with the SEC if the
Company were required to so file pursuant to the Exchange Act.

                  Delivery of such reports, information and documents to the
Trustee is for informational purposes only and the Trustee's receipt of such
shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

                  (c) For so long as any Notes remain outstanding, the Company
shall make available upon request, to any Holder, any holder of a beneficial
interest in a Note and, upon request of any Holder or any such holder, any
prospective purchaser of a Note or a beneficial interest therein, the
information required pursuant to Rule 144A(d)(4) under the Securities Act during
any period in which the Company is not subject to Section 13 or 15(d) of the
Exchange Act.

Section 4.03.     WAIVER OF STAY, EXTENSION OR USURY LAWS.

                  The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead (as a defense or
otherwise) or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law which would prohibit
or forgive the Company from paying all or any portion of the principal of,
premium, if any, and/or interest on the Notes as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) the Company hereby expressly waives all benefit or advantage of

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<PAGE>   66

any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted.

Section 4.04.     COMPLIANCE CERTIFICATE.

                  (a) The Company shall deliver to the Trustee, within 100 days
after the end of each fiscal year and on or before 50 days after the end of the
first, second and third quarters of each fiscal year, an Officers' Certificate
(one of the signers of which shall be the principal executive officer, principal
financial officer or principal accounting officer of the Company) stating that a
review of the activities of the Company and its Subsidiaries during such fiscal
year or fiscal quarter, as the case may be, has been made under the supervision
of the signing officers with a view to determining whether each has kept,
observed, performed and fulfilled its obligations under this Indenture, and
further stating, as to each such Officer signing such certificate, that to the
best of his or her knowledge each has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all or
such Defaults or Events of Default of which he or she may have knowledge and
what action each is taking or proposes to take with respect thereto) and that to
the best of his or her knowledge no event has occurred and remains in existence
by reason of which payments on account of the principal of or interest, if any,
on the Notes is prohibited or if such event has occurred, a description of the
event and what action each is taking or proposes to take with respect thereto.

                  (b) So long as not contrary to the then current
recommendations of the American Institute of Certified Public Accountants, the
year-end financial statements delivered pursuant to Section 4.02 above shall be
accompanied by a written statement of the Company's independent certified public
accountants (who shall be a firm of established national reputation) that in
making the examination necessary for certification of such financial statements
nothing has come to their attention which would lead them to believe that the
Company has violated any provisions of this Article 4 or Article 5 of this
Indenture or, if any such violation has occurred, specifying the nature and
period of existence thereof, it being understood that such accountants shall not
be liable directly or indirectly for any failure to obtain knowledge of any such
violation.

                  (c) The Company will, so long as any of the Notes are
outstanding, deliver to the Trustee, forthwith upon any officer becoming aware
of any Default or Event of Default, an Officers' Certificate specifying such
Default or Event of Default and what action the Company is taking or proposes to
take with a respect thereto.

Section 4.05.     TAXES.

                  The Company shall, and shall cause each of its Subsidiaries
to, pay prior to delinquency all material taxes, assessments, and governmental
levies except as contested in good faith and by appropriate proceedings.

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Section 4.06.     LIMITATION ON DEBT.

                  (a) The Company shall not, and shall not permit any Restricted
Subsidiary to, incur, directly or indirectly, any Debt (including Acquired Debt)
other than Permitted Debt unless:

                  (1) after giving effect to the incurrence of such Debt and the
         application of the proceeds thereof, the ratio of total Debt to the
         Company's Consolidated EBITDA (determined on a pro forma basis for the
         last four full fiscal quarters for which financial statements are
         available at the date of determination) would be less than 7.0 to 1.0;
         PROVIDED that for purposes of calculating the ratio, Debt shall not
         include the Existing Preferred Stock; and, PROVIDED, FURTHER that if
         the Debt which is the subject of a determination under this provision
         is Acquired Debt or Debt to be incurred in connection with the
         simultaneous acquisition of any Person, business, property or assets,
         then such ratio shall be determined by giving effect (on a pro forma
         basis, as if the transaction had occurred at the beginning of the four
         quarter period) to both the incurrence of the Acquired Debt or other
         Debt by the Company and the inclusion in the Company's Consolidated
         EBITDA of the Consolidated EBITDA of the acquired Person, business,
         property or assets; and

                  (2) no Default or Event of Default would occur as a
         consequence of such incurrence or be continuing following such
         incurrence.

                  (b) Notwithstanding anything to the contrary contained in this
covenant,

                  (1) the Company shall not, and shall not permit any Subsidiary
         Guarantor to, incur any Debt pursuant to this Section 4.06 (other than
         Debt incurred under clause (1) of this Section 4.06(a) or clause
         (k)(1)(A) or (k)(2)(A) of the definition of "Permitted Debt," as
         applicable) if the proceeds thereof are used, directly or indirectly,
         to Refinance

                           (A) any Subordinated Obligations unless such Debt
                  shall be subordinated to the Notes or the applicable
                  Subsidiary Guarantee, as the case may be, to at least the same
                  extent as such Subordinated Obligations or

                           (B) any Senior Subordinated Debt unless such Debt
                  shall be Senior Subordinated Debt or shall be subordinated to
                  the Notes or the applicable Subsidiary Guarantee, as the case
                  may be;

                  (2) the Company shall not permit any Restricted Subsidiary
         that is not a Subsidiary Guarantor to incur any Debt pursuant to this
         covenant (other than Debt incurred under clause (1) of Section 4.06(a))
         if the proceeds thereof are used, directly or indirectly, to Refinance
         any Subordinated Obligations or Senior Subordinated Debt of the Company
         or any Subsidiary Guarantor;

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<PAGE>   68

                  (3) accrual of interest, accretion or amortization of original
         issue discount and the payment of interest or dividends in the form of
         additional Debt, will be deemed not to be an incurrence of Debt for
         purposes of this covenant; and

                  (4) for purposes of determining compliance with this Section
         4.06, in the event that an item of Debt (including Acquired Debt) meets
         the criteria of more than one of the categories of Permitted Debt
         described in clauses (a) through (m) of such definition or is entitled
         to be incurred pursuant to clause (1) of Section 4.06(a), the Company
         will, in its sole discretion, classify (or later reclassify in whole or
         in part, in its sole discretion) such item of Debt in any manner that
         complies with this covenant.

Section 4.07.     LIMITATION ON ISSUANCE OR SALE OF CAPITAL STOCK OF
                  RESTRICTED SUBSIDIARIES.

                  The Company shall not:

                  (a) sell, pledge, hypothecate or otherwise dispose of any
shares of Capital Stock of a Restricted Subsidiary; or

                  (b) permit any Restricted Subsidiary to, directly or
indirectly, issue or sell or otherwise dispose of any shares of its Capital
Stock;

         other than, in the case of either (a) or (b):

                  (1) directors' qualifying shares;

                  (2) to the Company or a Wholly Owned Restricted Subsidiary;

                  (3) Preferred Stock issued by a Restricted Subsidiary other
         than to the Company or a Restricted Subsidiary if the Company or such
         Restricted Subsidiary would be permitted to incur Debt under clause (1)
         of Section 4.06(a) in the principal amount of the aggregate liquidation
         value of the Preferred Stock to be issued;

                  (4) to secure the Company's or a Restricted Subsidiary's
         obligations under any Senior Debt; or

                  (5) a disposition of the Capital Stock of a Restricted
         Subsidiary; PROVIDED, HOWEVER, that such disposition is effected in
         compliance with Section 4.10.

Section 4.08.     LIMITATION ON RESTRICTED PAYMENTS.

                  (a) The Company shall not make, and shall not permit any
Restricted Subsidiary to make, directly or indirectly, any Restricted Payment if
at the time of, and after giving effect to, such proposed Restricted Payment:

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                  (1) a Default or Event of Default shall have occurred and be
         continuing;

                  (2) the Company could not incur at least $1.00 of additional
         Debt pursuant to clause (1) of Section 4.06(a); or

                  (3) the aggregate amount of such Restricted Payment and all
         other Restricted Payments declared or made since the Issue Date (the
         amount of any Restricted Payment, if made other than in cash, to be
         based upon Fair Market Value) would exceed the sum of

                           (A) 100% of the Company's Cumulative Consolidated
                  EBITDA minus 1.4 times the Company's Cumulative Consolidated
                  Interest Expense, plus

                           (B) 100% of the aggregate net proceeds (after
                  deduction of fees, expenses, discounts and commissions
                  incurred in connection with issuance and sale) and the Fair
                  Market Value of securities or other Property received by the
                  Company from the issue or sale, after the Issue Date, of
                  Capital Stock (other than Disqualified Capital Stock of the
                  Company or Capital Stock of the Company issued to any
                  Restricted Subsidiary of the Company) of the Company or any
                  Debt or other securities of the Company convertible into or
                  exercisable or exchangeable for Capital Stock (other than
                  Disqualified Capital Stock) of the Company which have been so
                  converted or exercised or exchanged, as the case may be, plus

                           (C) $10.0 million.

                  (b) Notwithstanding the foregoing limitation, the Company may:

                  (1) pay dividends on its Capital Stock within 60 days of the
         declaration thereof if, on said declaration date, such dividends could
         have been paid in compliance with this Indenture; PROVIDED, HOWEVER,
         that such dividend shall be included in the calculation of the amount
         of Restricted Payments;

                  (2) purchase, repurchase, redeem, legally defease, acquire or
         retire for value (x) Capital Stock of the Company or Subordinated
         Obligations in exchange for, or out of the proceeds of the
         substantially concurrent sale of, Capital Stock of the Company (other
         than Disqualified Capital Stock and other than Capital Stock issued or
         sold to a Subsidiary of the Company), and (y) Disqualified Capital
         Stock of the Company in exchange for, or out of the proceeds of the
         substantially concurrent sale of (other than to a Subsidiary of the
         Company) Disqualified Capital Stock of the Company that has a
         redemption date, and requires the payment of current dividends in cash,
         no earlier than the Disqualified Capital Stock being purchased,
         redeemed or otherwise acquired or retired; PROVIDED, HOWEVER, that

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                           (A) such purchase, repurchase, redemption, legal
                  defeasance, acquisition or retirement shall be excluded in the
                  calculation of the amount of Restricted Payments and

                           (B) the Capital Stock Sale Proceeds from such
                  exchange or sale shall be excluded from the calculation
                  pursuant to clause (a)(3)(B) above;

                  (3) purchase, repurchase, redeem, legally defease, acquire or
         retire for value any Subordinated Obligations in exchange for, or out
         of the proceeds of the substantially concurrent sale of, Refinancing
         Debt or Debt permitted under clause (k) of the definition of "Permitted
         Debt"; PROVIDED, HOWEVER, that such purchase, repurchase, redemption,
         legal defeasance, acquisition or retirement shall be excluded in the
         calculation of the amount of Restricted Payments;

                  (4) repurchase shares of, or options to purchase shares of,
         common stock of the Company or any of its Subsidiaries from current or
         former officers, directors or employees of the Company or any of its
         Subsidiaries (or permitted transferees of such current or former
         officers, directors or employees), pursuant to the terms of agreements
         (including employment agreements) or plans (or amendments thereto)
         approved by the Board of Directors under which such individuals
         purchase or sell, or are granted the option to purchase or sell, shares
         of such common stock; PROVIDED, HOWEVER, that:

                           (A) the aggregate amount of such repurchases shall
                  not exceed $1.0 million in any calendar year and

                           (B) at the time of such repurchase, no other Default
                  or Event of Default shall have occurred and be continuing (or
                  result therefrom);

         PROVIDED FURTHER, HOWEVER, that such repurchases shall be included in
         the calculation of the amount of Restricted Payments;

                  (5) as long as no Default or Event of Default has occurred and
         is continuing, purchase, repurchase, redeem, legally defease, acquire
         or retire for value outstanding Preferred Stock in exchange for, or out
         of, consideration received by the Company or any Restricted Subsidiary
         from any Spectrum Sale as permitted under Section 4.10; PROVIDED,
         HOWEVER, that such purchase, repurchase, redemption, legal defeasance,
         acquisition or retirement shall be excluded in the calculation of the
         amount of Restricted Payments;

                  (6) as long as no Default or Event of Default has occurred and
         is continuing, pay cash dividends (not constituting a return on
         capital) on the Existing Preferred Stock under the terms related to the
         payment of dividends on the Existing Preferred Stock as in effect on
         the Issue Date and described under "Description of Material
         Indebtedness and Preferred Stock" in the Offering Memorandum; PROVIDED,
         HOWEVER, that any cash dividends paid with respect to the Existing
         Preferred Stock shall reduce amounts otherwise available for Restricted
         Payments; and PROVIDED FURTHER, HOWEVER, in no event shall any such

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<PAGE>   71

         cash dividend be paid at any time when the Company is permitted to pay
         a dividend on such stock otherwise than in cash, unless the Company
         would be required to pay such non-cash dividends at a rate higher than
         that applicable to cash dividends;

                  (7) pay dividends on Disqualified Capital Stock solely in
         additional shares of Disqualified Capital Stock;

                  (8) make Restricted Payments in the aggregate of $15.0
         million; and

                  (9) make distributions or payments of Receivables Fees.

                  (c) Not later than the date of making any Restricted Payment,
the Company shall deliver to the Trustee an Officers' Certificate stating that
such Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Section 4.08 were computed, which calculations may
be based upon the Company's latest available financial statements, and that no
Default or Event of Default exists and is continuing and no Default or Event of
Default will occur immediately after giving effect to any Restricted Payments.

Section 4.09.     LIMITATION ON LIENS.

                  The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, incur or suffer to exist any Lien (other
than Permitted Liens or Liens securing Obligations in respect of Senior Debt)
upon any of its Property (including Capital Stock of a Restricted Subsidiary),
whether owned at the Issue Date or thereafter acquired, or any interest therein
or any income or profits therefrom, unless:

                  (a) if such Lien secures Senior Subordinated Debt, the Notes
         or the applicable Subsidiary Guarantee are secured on an equal and
         ratable basis with such Debt; and

                  (b) if such Lien secures Subordinated Obligations, such Lien
         shall be subordinated to a Lien securing the Notes or the applicable
         Subsidiary Guarantee in the same Property as that subject to such Lien
         to the same extent as such Subordinated Obligations are subordinated to
         the Notes and the Subsidiary Guarantees.

Section 4.10.     LIMITATION ON ASSET SALES AND SPECTRUM SALES.

                  (a) The Company shall not, and shall not permit any Restricted
         Subsidiary to, directly or indirectly, consummate any Asset Sale
         unless:

                           (1) the Company or such Restricted Subsidiary
                  receives consideration at the time of such Asset Sale at least
                  equal to the Fair Market Value of the Property subject to such
                  Asset Sale;

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<PAGE>   72

                           (2) at least 75% of the consideration paid to the
                  Company or such Restricted Subsidiary in connection with such
                  Asset Sale is in the form of cash or cash equivalents (other
                  than as set forth in clause (3) below) or the assumption by
                  the purchaser of liabilities of the Company or any Restricted
                  Subsidiary (other than liabilities that are by their terms
                  subordinated to the Notes or the applicable Subsidiary
                  Guarantee) as a result of which the Company and the Restricted
                  Subsidiaries are no longer obligated with respect to such
                  liabilities; and

                           (3) notwithstanding clause (2) above, the Company may
                  exchange all or substantially all of the assets of one or more
                  media properties operated by the Company, including by way of
                  the transfer of Capital Stock, for all or substantially all of
                  the assets, including by way of Capital Stock, constituting
                  one or more media properties operated by another Person,
                  provided that not less than 75% of the consideration received
                  by the Company in the exchange is in the form of cash or cash
                  equivalents considering, for this purpose only, the media
                  properties, valued at their Fair Market Value, as cash
                  equivalents; and

                           (4) the Company delivers an Officers' Certificate to
                  the Trustee certifying that such Asset Sale complies with the
                  foregoing clauses (1), (2) and, if applicable, (3).

                  (b) The Net Available Cash (or any portion thereof) from Asset
         Sales other than from Excluded Asset Sales may be applied by the
         Company or a Restricted Subsidiary, to the extent the Company or such
         Restricted Subsidiary elects (or is required by the terms of any Debt):

                           (1) to Repay Senior Debt of the Company or any
                  Subsidiary Guarantor or Debt of any Restricted Subsidiary that
                  is not a Subsidiary Guarantor (excluding, in any such case,
                  any Debt owed to the Company or an Affiliate of the Company);

                           (2) to reinvest in Additional Assets (including by
                  means of an Investment in Additional Assets by a Restricted
                  Subsidiary with Net Available Cash received by the Company or
                  another Restricted Subsidiary); or

                           (3) to make any required offer in connection with
                  Asset Sales to holders of the Exchange Debentures in
                  accordance with the terms of the Exchange Indentures.

                  (c) Any Net Available Cash from an Asset Sale other than an
         Excluded Asset Sale not applied in accordance with the preceding
         paragraph within 180 days from the date of the receipt of such Net
         Available Cash or allocated for investment in identified Additional
         Assets in respect of a project that shall have been commenced, and for
         which binding contractual commitments have been entered into, prior to
         the end of such 180-day period and that shall not have been completed
         or abandoned shall constitute "Excess Proceeds;" PROVIDED, HOWEVER,
         that the amount of any Net Available Cash that ceases to be so
         allocated as contemplated above and any Net Available Cash that is

                                       64
<PAGE>   73

         allocated in respect of a project that is abandoned or completed shall
         also constitute "Excess Proceeds" at the time any such Net Available
         Cash ceases to be so allocated or at the time the relevant project is
         so abandoned or completed, as applicable; PROVIDED FURTHER, HOWEVER,
         that the amount of any Net Available Cash that continues to be
         allocated for investment and that is not actually reinvested within 24
         months from the date of the receipt of such Net Available Cash shall
         also constitute "Excess Proceeds."

                  (d) When the aggregate amount of Excess Proceeds exceeds $10.0
         million, the Company will be required to make an offer to purchase (the
         "PREPAYMENT OFFER") the Notes, which offer shall be in the amount of
         the Allocable Excess Proceeds, on a pro rata basis according to
         principal amount, at a purchase price equal to 100% of the principal
         amount thereof, plus accrued and unpaid interest and Special Interest,
         if any, and Special Interest, if any, to the purchase date (subject to
         the right of holders of record on the relevant record date to receive
         interest due on the relevant interest payment date), in accordance with
         the procedures (including prorating in the event of oversubscription)
         set forth in this Indenture. To the extent that any portion of the
         amount of Excess Proceeds remains after compliance with the preceding
         sentence and provided that all holders of Notes have been given the
         opportunity to tender their Notes for purchase in accordance with this
         Indenture, the Company or such Restricted Subsidiary may use such
         remaining amount for any purpose permitted by the Indenture, and the
         amount of Excess Proceeds will be reset to zero.

                  (e) The Company or any Restricted Subsidiary may use any Net
         Available Cash from any Spectrum Sales (the "SPECTRUM PROCEEDS") in any
         manner permitted by this Indenture, and may use any Spectrum Proceeds
         in excess of an aggregate of $200 million (cumulative from the date of
         this Indenture) ("EXCESS SPECTRUM PROCEEDS"), whether or not otherwise
         permitted by this Indenture, to purchase, repurchase, redeem, legally
         defease, acquire or retire outstanding preferred stock of the Company,
         provided the Company has first made an offer in the amount of the
         Allocable Spectrum Proceeds to purchase (the "SPECTRUM PREPAYMENT
         OFFER") the Notes on a pro rata basis according to principal amount, at
         a price of 105% of the principal amount thereof, plus accrued and
         unpaid interest, if any, to the purchase date (subject to the right of
         holders of record on the relevant record date to receive interest due
         on the relevant interest payment date), in accordance with the
         procedures (including prorating in the event of oversubscription) set
         forth in this Indenture.

                  (f) The terms "ALLOCABLE EXCESS PROCEEDS" and "ALLOCABLE
         SPECTRUM PROCEEDS," as the case may be, shall mean the product of:

                           (1) the Excess Proceeds or Excess Spectrum Proceeds,
                  as the case may be; and

                           (2) a fraction,

                                    (A) the numerator of which is the aggregate
                           principal amount of the Notes outstanding on the date
                           of the Prepayment Offer or Spectrum Prepayment Offer,
                           as the case may be, and

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<PAGE>   74

                                    (B) the denominator of which is the sum of
                           the aggregate principal amount of the Notes
                           outstanding on the date of the Prepayment Offer or
                           Spectrum Prepayment Offer, as the case may be, and
                           the aggregate principal amount of other Debt of the
                           Company outstanding on the date of the Prepayment
                           Offer or Spectrum Prepayment Offer, as the case may
                           be, that is PARI PASSU in right of payment with the
                           Notes and subject to terms and conditions in respect
                           of Asset Sales similar in all material respects to
                           the covenant described hereunder and requiring the
                           Company to make an offer to purchase such Debt at
                           substantially the same time as the Prepayment Offer
                           or Spectrum Prepayment Offer, as the case may be.
                           Notwithstanding the foregoing, Debt under the
                           Exchange Debentures shall not be included in the
                           denominator for purposes of this clause (B).

                  (g) Promptly, and in any event within 30 days after the
         Company is obligated to make a Prepayment Offer or Spectrum Prepayment
         Offer, as the case may be, as described in the preceding paragraph, the
         Company shall send a written notice, by first-class mail, to the
         holders of Notes, accompanied by such information regarding the Company
         and its Subsidiaries as the Company in good faith believes will enable
         such holders to make an informed decision with respect to such
         Prepayment Offer or Spectrum Prepayment Offer, as the case may be. Such
         notice shall state, among other things, the purchase price and the
         purchase date, which shall be, subject to any contrary requirements of
         applicable law, a business day no earlier than 30 days nor later than
         60 days from the date such notice is mailed.

                  (h) The Company will comply, to the extent applicable, with
         the requirements of Section 14(e) of the Exchange Act and any other
         securities laws or regulations in connection with the repurchase of
         Notes pursuant to the covenant described hereunder. To the extent that
         the provisions of any securities laws or regulations conflict with
         provisions of the covenant described hereunder, the Company will comply
         with the applicable securities laws and regulations and will be deemed
         not to have breached its obligations under the covenant described
         hereunder by virtue thereof.

                  (i) On or before the purchase date, the Company shall, to the
         extent lawful, accept for payment, on a pro rata basis to the extent
         necessary, Notes or portions thereof tendered pursuant to the
         Prepayment Offer or Spectrum Prepayment Offer, as the case may be,
         deposit with the Paying Agent U.S. legal tender sufficient to pay the
         purchase price plus accrued interest, if any, on the Notes to be
         purchased and deliver to the Trustee an Officers' Certificate stating
         that such securities or portions thereof were accepted for payment by
         the Company in accordance with the terms of this Section 4.10. The
         Paying Agent shall promptly (but in any case not later than 5 days
         after the purchase date) mail or deliver to each tendering Holder an
         amount equal to the purchase price of the Note tendered by such Holder
         and accepted by the Company for purchase, and the Company shall
         promptly issue a new Note, and the Trustee shall authenticate and mail
         or make available for delivery such new Note to such Holder equal in
         principal amount to any unpurchased portion of the Note surrendered.

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<PAGE>   75

         Any Note not so accepted shall be promptly mailed or delivered by the
         Company to the Holder thereof. The Company will publicly announce the
         results of the Prepayment Offer or Spectrum Prepayment Offer, as the
         case may be, on the purchase date.

Section 4.11.     LIMITATION ON TRANSACTIONS WITH AFFILIATES.

                  (a) The Company shall not, and shall not permit any Restricted
         Subsidiary to, directly or indirectly, conduct any business or enter
         into or suffer to exist any transaction or series of transactions
         (including the purchase, sale, transfer, assignment, lease, conveyance
         or exchange of any Property or the rendering of any service) with, or
         for the benefit of, any Affiliate of the Company (an "AFFILIATE
         TRANSACTION"), unless:

                           (1) the terms of such Affiliate Transaction are

                                    (A) fair and reasonable to the Company or
                           such Restricted Subsidiary, as the case may be, and

                                    (B) no less favorable to the Company or such
                           Restricted Subsidiary, as the case may be, than those
                           that could be obtained in a comparable arm's-length
                           transaction with a Person that is not an Affiliate of
                           the Company;

                           (2) if such Affiliate Transaction involves aggregate
                  payments or value in excess of $1.0 million, the Company
                  obtains and promptly delivers to the Trustee a resolution of
                  its Board of Directors (including a majority of the
                  disinterested members of the Board of Directors) approving
                  such Affiliate Transaction and certifying that, in its good
                  faith judgment, such Affiliate Transaction complies with
                  clauses (a)(1)(A) and (a)(1)(B) above; and

                           (3) if such Affiliate Transaction involves aggregate
                  payments or value in excess of $5.0 million, the Company
                  obtains a written opinion from an Independent Financial
                  Advisor that the transaction is fair to the Company and the
                  Restricted Subsidiaries.

                  (b) Without regard to the foregoing limitations, the Company
         or any Restricted Subsidiary may enter into or suffer to exist the
         following:

                           (1) any transaction or series of transactions between
                  the Company and one or more Restricted Subsidiaries or between
                  two or more Restricted Subsidiaries in the ordinary course of
                  business, PROVIDED that no more than 5% of the total voting
                  power of the Voting Stock (on a fully diluted basis) of any
                  such Restricted Subsidiary is owned by an Affiliate of the
                  Company (other than a Restricted Subsidiary);

                           (2) any Restricted Payment permitted to be made
                  pursuant to Section 4.08 or any Permitted Investment;

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<PAGE>   76

                           (3) any transaction, including compensation and
                  employee benefit arrangements, with an officer or director of
                  the Company or any of the Restricted Subsidiaries in his or
                  her capacity as an officer or director, so long as the Board
                  of Directors in good faith shall have approved the terms
                  thereof;

                           (4) loans and advances to employees made in the
                  ordinary course of business and consistent with the past
                  practices of the Company or such Restricted Subsidiary, as the
                  case may be, PROVIDED that such loans and advances do not
                  exceed $1.0 million to any one employee and $5.0 million in
                  the aggregate at any one time outstanding;

                           (5) agreements in effect on the Issue Date and any
                  modifications, extensions or renewals thereto that are no less
                  favorable to the Company or any Restricted Subsidiary than
                  such agreement as in effect on the Issue Date; and

                           (6) sales of accounts receivable, or participations
                  therein, in connection with any Receivables Facility.

Section 4.12.     LIMITATION ON LAYERED DEBT.

                  The Company shall not, and shall not permit any Subsidiary
Guarantor to, incur, directly or indirectly, any Debt that is subordinate or
junior in right of payment to any Senior Debt unless such Debt is Senior
Subordinated Debt or is expressly subordinated in right of payment to Senior
Subordinated Debt. In addition, no Subsidiary Guarantor shall Guarantee,
directly or indirectly, any Debt of the Company that is subordinate or junior in
right of payment to any Senior Debt unless such Guarantee is expressly
subordinate in right of payment to, or ranks PARI PASSU with, the Subsidiary
Guarantee of such Subsidiary Guarantor or any guarantee by such Subsidiary
Guarantor of Exchange Debentures (or any guarantees by such Subsidiary Guarantor
ranking PARI PASSU therewith).

Section 4.13.     DESIGNATION OF RESTRICTED AND UNRESTRICTED SUBSIDIARIES.

                  (a) The Board of Directors may designate any Subsidiary of the
Company to be an Unrestricted Subsidiary if:

                  (1) the Subsidiary to be so designated does not own any
         Capital Stock or Debt of, or own or hold any Lien on any Property of,
         the Company or any other Restricted Subsidiary; and

                  (2) either:

                           (A) the Subsidiary to be so designated has total
                  assets of $1,000 or less or

                           (B) such designation is effective immediately upon
                  such entity becoming a Subsidiary of the Company.

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<PAGE>   77

Unless so designated as an Unrestricted Subsidiary, any Person that becomes a
Subsidiary of the Company will be classified as a Restricted Subsidiary;
PROVIDED, HOWEVER, that such Subsidiary shall not be designated a Restricted
Subsidiary and shall be automatically classified as an Unrestricted Subsidiary
if either of the requirements set forth in clauses (1) and (2) of paragraph (c)
below will not be satisfied after giving pro forma effect to such classification
or if such Person is a Subsidiary of an Unrestricted Subsidiary.

                  (b) Except as provided in clauses (1) and (2) of paragraph (a)
above, no Restricted Subsidiary may be redesignated as an Unrestricted
Subsidiary. In addition, neither the Company nor any Restricted Subsidiary shall
at any time be directly or indirectly liable for any Debt that provides that the
holder thereof may (with the passage of time or notice or both) declare a
default thereon or cause the payment thereof to be accelerated or payable prior
to its Stated Maturity upon the occurrence of a default with respect to any
Debt, Lien or other obligation of any Unrestricted Subsidiary (including any
right to take enforcement action against such Unrestricted Subsidiary). Upon
designation of a Restricted Subsidiary as an Unrestricted Subsidiary in
compliance with this covenant, such Restricted Subsidiary shall, by execution
and delivery of a supplemental indenture in form satisfactory to the Trustee, be
released from any Subsidiary Guarantee previously made by such Restricted
Subsidiary.

                  (c) The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary if, immediately after giving pro forma
effect to such designation,

                  (1) the Company could incur at least $1.00 of additional Debt
         pursuant to clause (1) of Section 4.06(a) and

                  (2) no Default or Event of Default shall have occurred and be
         continuing or would result therefrom.

                  (d) Any such designation or redesignation by the Board of
Directors will be evidenced to the Trustee by filing with the Trustee a Board
Resolution giving effect to such designation or redesignation and an Officers'
Certificate that

                  (1) certifies that such designation or redesignation complies
         with the foregoing provisions and

                  (2) gives the effective date of such designation or
         redesignation,

such filing with the Trustee to occur within 45 days after the end of the fiscal
quarter of the Company in which such designation or redesignation is made (or,
in the case of a designation or redesignation made during the last fiscal
quarter of the Company's fiscal year, within 90 days after the end of such
fiscal year).

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<PAGE>   78

Section 4.14.     FUTURE SUBSIDIARY GUARANTORS.

                  The Company shall cause each Person that becomes a Domestic
Restricted Subsidiary following the Issue Date and any other entity that
guarantees any Exchange Debentures to execute and deliver to the Trustee a
Subsidiary Guarantee at the time such Person becomes a Domestic Restricted
Subsidiary or guarantees any Exchange Debentures.

Section 4.15.     LIMITATION ON RESTRICTIONS ON DISTRIBUTIONS FROM
                  RESTRICTED SUBSIDIARIES.

                  (a) The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, create or otherwise cause or suffer to
exist any consensual restriction on the right of any Restricted Subsidiary to:

                  (1) pay dividends, in cash or otherwise, or make any other
         distributions on or in respect of its Capital Stock, or pay any Debt or
         other obligation owed, to the Company or any other Restricted
         Subsidiary;

                  (2) make any loans or advances to the Company or any other
         Restricted Subsidiary; or

                  (3) transfer any of its Property to the Company or any other
         Restricted Subsidiary.

                  (b) The foregoing limitations will not apply:

                  (1) with respect to clauses (1), (2) and (3) of paragraph (a),
         to restrictions

                           (A) in effect on the Issue Date,

                           (B) relating to Debt of a Restricted Subsidiary and
                  existing at the time it became a Restricted Subsidiary if such
                  restriction was not created in connection with or in
                  anticipation of the transaction or series of transactions
                  pursuant to which such Restricted Subsidiary became a
                  Restricted Subsidiary or was acquired by the Company,

                           (C) relating to the Senior Credit Facility,

                           (D) created in connection with any Receivables
                  Facility that, in the good faith determination of the Board of
                  Directors of the Company, are necessary or advisable to effect
                  such Receivables Facility, or

                           (E) that result from the Refinancing of Debt incurred
                  pursuant to an agreement referred to in clause (1)(A), (B) or
                  (C) above or in clause (2)(A) or (B) below, PROVIDED such
                  restriction is no less favorable to the holders of Notes than
                  those under the agreement evidencing the Debt so Refinanced;
                  and

                                       70
<PAGE>   79

                  (2) with respect to clause (a)(3) only, to restrictions

                           (A) relating to Debt that is permitted to be incurred
                  and secured without also securing the Notes or the applicable
                  Subsidiary Guarantee pursuant to Sections 4.06 and 4.09 that
                  limit the right of the debtor to dispose of the Property
                  securing such Debt,

                           (B) encumbering Property at the time such Property
                  was acquired by the Company or any Restricted Subsidiary, so
                  long as such restriction relates solely to the Property so
                  acquired and was not created in connection with or in
                  anticipation of such acquisition,

                           (C) resulting from customary provisions restricting
                  subletting or assignment of leases or customary provisions in
                  other agreements that restrict assignment of such agreements
                  or rights thereunder or

                           (D) customarily contained in asset sale agreements
                  limiting the transfer of such Property pending the closing of
                  such sale.

Section 4.16.     PAYMENTS FOR CONSENT.

                  Neither the Company nor any of its Subsidiaries shall,
directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fee or otherwise, to any Holder of any Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of this Indenture or the Notes unless such consideration is offered to be paid
or agreed to be paid to all Holders of the Notes which so consent, waive or
agree to amend in the time frame set forth in solicitation documents relating to
such consent, waiver or agreement.

Section 4.17.     CORPORATE EXISTENCE.

                  Subject to Article 5 hereof, the Company shall do or cause to
be done all things necessary to preserve and keep in full force and effect (i)
its corporate existence, and the corporate, partnership or other existence of
each Restricted Subsidiary, in accordance with the respective organizational
documents (as the same may be amended from time to time) of each Restricted
Subsidiary and the rights (charter and statutory), licenses and franchises of
the Company and its Restricted Subsidiaries; PROVIDED, HOWEVER, that the Company
shall not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Restricted Subsidiaries,
if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Restricted Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders.

Section 4.18.     CHANGE OF CONTROL.

                  (a) Upon the occurrence of a Change of Control, each holder of
Notes shall have the right to require the Company to repurchase all or any part
of such holder's Notes pursuant to the offer described below (the "CHANGE OF
CONTROL OFFER") at a purchase price (the "CHANGE OF CONTROL PURCHASE PRICE")

                                       71
<PAGE>   80

equal to 101% of the principal amount thereof, plus accrued and unpaid interest,
if any, and Special Interest, if any, to the purchase date (subject to the right
of holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

                  (b) Within 30 days following any Change of Control, the
Company shall:

                  (1) cause a notice of the Change of Control Offer to be sent
         at least once to the Dow Jones News Service or similar business news
         service in the United States; and

                  (2) send, by first-class mail, with a copy to the Trustee, to
         each holder of Notes, at such holder's address appearing in the
         register of Notes maintained by the Registrar, a notice stating:

                           (A) that a Change of Control has occurred and a
                  Change of Control Offer is being made pursuant to this Section
                  4.17 and that all Notes timely tendered will be accepted for
                  payment;

                           (B) the Change of Control Purchase Price and the
                  purchase date, which shall be, subject to any contrary
                  requirements of applicable law, a business day no earlier than
                  30 days nor later than 60 days from the date such notice is
                  mailed;

                           (C) the circumstances and relevant facts regarding
                  the Change of Control (including information with respect to
                  pro forma historical income, cash flow and capitalization
                  after giving effect to the Change of Control); and

                           (D) the procedures that holders of Notes must follow
                  in order to tender their Notes (or portions thereof) for
                  payment, and the procedures that holders of Notes must follow
                  in order to withdraw an election to tender Notes (or portions
                  thereof) for payment.

                  (c) On the purchase date, the Company shall to the extent
lawful (i) accept for payment Notes or portions thereof tendered pursuant to the
Change of Control Offer, (ii) deposit with the Paying Agent money sufficient to
pay the purchase price of all Notes or portions thereof so tendered and (iii)
deliver or cause to be delivered to the Trustee Notes so accepted together with
an Officers' Certificate stating the Notes or portions thereof tendered to the
Company. The Paying Agent shall promptly mail to each Holder of Notes so
accepted payment in an amount equal to the purchase price for such Notes, and
the Company shall execute and issue, and the Trustee shall promptly authenticate
and mail to such holder, a Note equal in principal amount to any unpurchased
portion of the Notes surrendered; provided that each such Note shall be issued
in an original principal amount in denominations of $1,000 and integral
multiples thereof.

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<PAGE>   81

                  (d) The Company will comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Notes pursuant to a
Change of Control Offer. To the extent that the provisions of any securities
laws or regulations conflict with the provisions of the covenant described
hereunder, the Company will comply with the applicable securities laws and
regulations and will be deemed not to have breached its obligations under the
covenant described hereunder by virtue of such compliance.

Section 4.19.     MAINTENANCE OF OFFICE OR AGENCY.

                  The Company shall maintain an office or agency where Notes may
be surrendered for registration of transfer or exchange or for presentation for
payment and where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. The Company shall give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the address of the Trustee as set forth in Section 12.02.

                  The Company may also from time to time designate one or more
other offices or agencies where the Notes may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations.
The Company shall give prompt written notice to the Trustee of such designation
or rescission and of any change in the location of any such other office or
agency.

                  The Company hereby initially designates the Corporate Trust
Office of the Trustee set forth in Section 12.02 as such office of the Company.

                                   ARTICLE 5

                              SUCCESSOR CORPORATION

Section 5.01.     LIMITATION ON CONSOLIDATION, MERGER AND SALE OF PROPERTY.

                  (a) The Company shall not merge, consolidate or amalgamate
with or into any other Person (other than a merger of a Wholly Owned Restricted
Subsidiary into the Company) or sell, transfer, assign, lease, convey or
otherwise dispose of all or substantially all its Property in any one
transaction or series of transactions unless:

                  (1) the Company shall be the surviving Person in such merger,
         consolidation or amalgamation, or the surviving person (if other than
         the Company) formed by such merger, consolidation or amalgamation or to
         which such sale, transfer, assignment, lease, conveyance or disposition
         is made (the "SURVIVING PERSON") shall be a corporation organized and
         existing under the laws of the United States of America, any State
         thereof or the District of Columbia;

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<PAGE>   82

                  (2) the Surviving Person expressly assumes, by supplemental
         indenture in form satisfactory to the Trustee, executed and delivered
         to the Trustee by such Surviving Person, the due and punctual payment
         of the principal of, and premium, if any, and interest on, all the
         Notes, according to their tenor, and the due and punctual performance
         and observance of all the covenants and conditions of this Indenture to
         be performed by the Company;

                  (3) in the case of a sale, transfer, assignment, lease,
         conveyance or other disposition of all or substantially all the
         Property of the Company, such Property shall have been transferred as
         an entirety or virtually as an entirety to one Person;

                  (4) immediately before and after giving effect to such
         transaction or series of transactions on a pro forma basis (and
         treating, for purposes of this clause (4) and clauses (5) and (6)
         below, any Debt that becomes, or is anticipated to become, an
         obligation of the Surviving Person or any Restricted Subsidiary as a
         result of such transaction or series of transactions as having been
         incurred by the Surviving Person or such Restricted Subsidiary at the
         time of such transaction or series of transactions), no Default or
         Event of Default shall have occurred and be continuing;

                  (5) immediately after giving effect to such transaction or
         series of transactions on a pro forma basis, the Company or the
         Surviving Person, as the case may be, would be able to incur at least
         $1.00 of additional Debt under clause (1) of Section 4.06(a); and

                  (6) the Company shall deliver, or cause to be delivered, to
         the Trustee, in form and substance reasonably satisfactory to the
         Trustee, an Officers' Certificate and an Opinion of Counsel, each
         stating that such transaction and the supplemental indenture, if any,
         in respect thereto comply with this covenant and that all conditions
         precedent provided for in this Indenture relating to such transaction
         have been satisfied.

                  (b) The Company shall not permit any Subsidiary Guarantor to
merge, consolidate or amalgamate with or into any other Person (other than a
merger of a Wholly Owned Restricted Subsidiary into the Company or any such
Subsidiary Guarantor) or sell, transfer, assign, lease, convey or otherwise
dispose of all or substantially all its Property in any one transaction or
series of transactions unless:

                  (1) the Surviving Person (if not such Subsidiary Guarantor)
         formed by such merger, consolidation or amalgamation or to which such
         sale, transfer, assignment, lease, conveyance or disposition is made
         shall be a corporation organized and existing under the laws of the
         United States of America, any State thereof or the District of
         Columbia;

                  (2) the Surviving Person (if other than such Subsidiary
         Guarantor) expressly assumes, by Subsidiary Guarantee in form

                                       74
<PAGE>   83

         satisfactory to the Trustee, executed and delivered to the Trustee by
         such Surviving Person, the due and punctual performance and observance
         of all the obligations of such Subsidiary Guarantor under its
         Subsidiary Guarantee;

                  (3) in the case of a sale, transfer, assignment, lease,
         conveyance or other disposition of all or substantially all the
         Property of such Subsidiary Guarantor, such Property shall have been
         transferred as an entirety or virtually as an entirety to one Person;

                  (4) immediately before and after giving effect to such
         transaction or series of transactions on a pro forma basis (and
         treating, for purposes of this clause (4) and clauses (5) and (6)
         below, any Debt that becomes, or is anticipated to become, an
         obligation of the Surviving Person, the Company or any Restricted
         Subsidiary as a result of such transaction or series of transactions as
         having been incurred by the Surviving Person, the Company or such
         Restricted Subsidiary at the time of such transaction or series of
         transactions), no Default or Event of Default shall have occurred and
         be continuing;

                  (5) immediately after giving effect to such transaction or
         series of transactions on a pro forma basis, the Company would be able
         to incur at least $1.00 of additional Debt under clause (1) of Section
         4.06(a); and

                  (6) the Company shall deliver, or cause to be delivered, to
         the Trustee, in form and substance reasonably satisfactory to the
         Trustee, an Officers' Certificate and an Opinion of Counsel, each
         stating that such transaction and such Subsidiary Guarantee, if any, in
         respect thereto comply with this covenant and that all conditions
         precedent provided for in this Indenture relating to such transaction
         have been satisfied.

                  (c) The foregoing provisions shall not apply to any
transactions which constitute an Asset Sale if the Company has complied with
Section 4.10.

                  (d) The Surviving Person shall succeed to, and be substituted
for, and may exercise every right and power of the Company under the Indenture
(or of the Subsidiary Guarantor under the Subsidiary Guarantee, as the case may
be), but the predecessor Company in the case of

                  (1) a sale, transfer, assignment, conveyance or other
         disposition (unless such sale, transfer, assignment, conveyance or
         other disposition is of all the assets of the Company as an entirety or
         virtually as an entirety) or

                  (2) a lease,

shall not be released from any of the obligations or covenants under this
Indenture, including with respect to the payment of the Notes.

                                       75
<PAGE>   84

Section 5.02.     SUCCESSOR PERSON SUBSTITUTED.

                  Upon any consolidation or merger, or any transfer of all or
substantially all of the assets of the Company or any Subsidiary Guarantor in
accordance with Section 5.01 above, the successor corporation formed by such
consolidation or into which the Company is merged or to which such transfer is
made shall succeed to, and be substituted for, and may exercise every right and
of, the Company or such Subsidiary Guarantor under this Indenture with the same
effect as if such successor corporation had been named as the Company or such
Subsidiary Guarantor herein, and thereafter the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the Notes.

                                   ARTICLE 6

                              DEFAULTS AND REMEDIES

Section 6.01.     EVENTS OF DEFAULT.

                  An "EVENT OF DEFAULT" occurs if

                  (1) there is a default in the payment of any interest on, or
         Special Interest with respect to, any Note when the same becomes due
         and payable and the Default continues for a period of 30 days;

                  (2) there is a default in the payment of any principal of, or
         premium, if any, on the Notes when the same becomes due and payable at
         its Stated Maturity, upon acceleration, redemption, optional
         redemption, required repurchase or otherwise;

                  (3) the Company or any Guarantor defaults in the observation
         or performance of its obligations under the provisions of Section 5.01
         or 5.02 hereof;

                  (4) the Company or any Guarantor defaults in the observance or
         performance of any other covenant or agreement in the Notes or this
         Indenture (other than a failure that is the subject of the foregoing
         clauses (1), (2) or (3) for 60 days after the Company receives written
         notice thereof specifying the default from the Trustee or the Holders
         of not less than 25% in the aggregate principal amount of the Notes
         then outstanding);

                  (5) there is a default under any Debt (other than the Existing
         Preferred Stock and any Disqualified Capital Stock issued to refinance
         Existing Preferred Stock, the terms of which provide for substantially
         the same remedies to the holders thereof upon a failure to pay any
         amount due at maturity as the terms of the Existing Preferred Stock so
         refinanced) by the Company or any Restricted Subsidiary that results in
         acceleration of the maturity of such Debt, or failure to pay any such
         Debt at maturity, in an aggregate amount of Debt greater than $10.0
         million or its foreign currency equivalent at the time;

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                  (6) any judgment or judgments for the payment of money in an
         aggregate amount in excess of $10,000,000 (or its foreign currency
         equivalent at the time) shall be rendered against the Company or any
         Restricted Subsidiary thereof and shall not be waived, satisfied or
         discharged for any period of 60 consecutive days during which a stay of
         enforcement of such judgment shall not be in effect;

                  (7) the Company or any Significant Subsidiary pursuant to or
         within the meaning of any Bankruptcy Law:

                           (A) commences a voluntary case,

                           (B) consents to the entry of an order for relief
                  against it in an involuntary case,

                           (C) consents to the appointment of a Custodian of it
                  or for all or substantially all of its property,

                           (D) makes a general assignment for the benefit of its
                  creditors, or

                           (E) generally is not paying its debts as they become
                  due;

                  (8) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (A) is for relief against the Company or any
                  Significant Subsidiary in an involuntary case,

                           (B) appoints a Custodian of the Company or any
                  Significant Subsidiary or for all or substantially all of the
                  property of the Company or any Significant Subsidiary, or

                           (C) orders the liquidation of the Company or any
                  Restricted Subsidiary,

                  and the order or decree remains unstayed and in effect for 60
                  days; or

                           (9) Subsidiary Guarantees provided by Subsidiary
                  Guarantors that individually or together would constitute a
                  Significant Subsidiary cease to be in full force and effect
                  (other than in accordance with the terms of such Subsidiary
                  Guarantees) or any Subsidiary Guarantor denies or disaffirms
                  its obligations under its Subsidiary Guaranty.

                  The term "BANKRUPTCY LAW" means Title 11, U.S. Code or any
         similar Federal or state law for the relief of debtors. The term
         "CUSTODIAN" means any receiver, trustee, assignee, liquidator or
         similar official under any Bankruptcy Law.

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<PAGE>   86

                  The Trustee may withhold notice to the Holders of the Notes of
any Default (except in payment of principal or premium, if any, or interest on
the Notes) if the Trustee considers it to be in the best interest of the Holders
of the Notes to do so.

Section 6.02.     ACCELERATION.

                  If an Event of Default (other than an Event of Default arising
under Section 6.01(7) or (8) with respect to the Company) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of not less
than 25% in aggregate principal amount of the Notes then outstanding may by
written notice to the Company and the Trustee declare to be immediately due and
payable the entire principal amount of all the Notes then outstanding plus
accrued but unpaid interest and Special Interest, if any, to the date of
acceleration and (i) such amounts shall become immediately due and payable or
(ii) if there are any amounts outstanding under any of the instruments
constituting Senior Debt, such amounts shall become due and payable upon the
first to occur of an acceleration under any of the instruments constituting
Senior Debt or five Business Days after receipt by the Company and the
Representative under any Senior Debt of notice of the acceleration of the Notes
unless all Events of Default specified in such Acceleration Notice have been
cured or waived. In case an Event of Default specified in Section 6.01(7) or (8)
with respect to the Company or any Significant Subsidiary occurs, such
principal, premium, if any, and interest and Special Interest, if any, with
respect to all of the Notes shall be due and payable immediately without any
declaration or other act on the part of the Trustee or the Holders of the Notes.
After any such acceleration but before a judgment or decree based on
acceleration is obtained by the Trustee, the Holders of a majority in aggregate
principal amount of the outstanding Notes (by notice to the Trustee) may rescind
and cancel such acceleration and its consequences if (i) all existing Events of
Default, other than the nonpayment of accelerated principal, premium, if any, or
interest that has become due solely because of the acceleration, have been cured
or waived, (ii) to the extent the payment of such interest is lawful, interest
(at the same rate specified in the Notes) on overdue installments of interest
and overdue principal, which has become due otherwise than by such declaration
of acceleration, has been paid, (iii) the Company has paid the Trustee its
reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances, (iv) the rescission would not conflict with any
judgment or decree of a court of competent jurisdiction and (v) in the event of
the cure or waiver of a Default or Event of Default described in Section 6.01(7)
or (8), the Trustee has received an Officers' Certificate and an Opinion of
Counsel that such Default or Event of Default has been cured or waived. No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

Section 6.03.     OTHER REMEDIES.

                  If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of, or premium, if any, and interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture and may
take any necessary action requested of it as Trustee to settle, compromise,
adjust or otherwise conclude any proceedings to which it is a party.

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                  The Trustee may maintain a proceeding even if it does not
possess any of the Notes or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Noteholder in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

Section 6.04.     WAIVER OF PAST DEFAULTS AND EVENTS OF DEFAULT.

                  Subject to Sections 6.02, 6.07 and 8.02 hereof, the Holders of
a majority in principal amount of the Notes then outstanding have the right to
waive any existing Default or Event of Default or compliance with any provision
of this Indenture or the Notes. Upon any such waiver, such Default shall cease
to exist, and any Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or Event of Default or impair any right
consequent thereto.

Section 6.05.     CONTROL BY MAJORITY.

                  The Holders of a majority in principal amount of the Notes
then outstanding may not direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee by this Indenture unless such Holders have
provided an indemnity reasonably satisfactory to the Trustee. The Trustee may
refuse to follow any direction that conflicts with law or this Indenture or that
the Trustee determines may be unduly prejudicial to the rights of another
Noteholder not taking part in such direction, and the Trustee shall have the
right to decline to follow any such direction if the Trustee, being advised by
counsel, determines that the action so directed may not lawfully be taken or if
the Trustee in good faith shall, by a Responsible Officer, determine that the
proceedings so directed may involve it in personal liability; provided that the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

Section 6.06.     LIMITATION ON SUITS.

                  Subject to Section 6.07 below, a Noteholder may not institute
any proceeding with respect to this Indenture, or for the appointment of a
receiver or trustee, or pursue any remedy with respect to this Indenture or the
Notes unless:

                  (1) such Holder has previously given to the Trustee written
         notice of a continuing Event of Default;

                  (2) the registered Holders of at least 25% in aggregate
         principal amount of the Notes then outstanding have made written
         request and offered indemnity to the Trustee reasonably satisfactory to
         the Trustee to institute such proceeding as trustee; and

                  (3) the Trustee shall not have received from the registered
         Holders of a majority in aggregate principal amount of the Notes then

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<PAGE>   88

         outstanding a direction inconsistent with such request and shall have
         failed to institute such proceeding within 60 days.

                  A Noteholder may not use this Indenture to prejudice the
rights of another Noteholder or to obtain a preference or priority over another
Noteholder.

Section 6.07.     RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

                  Notwithstanding any other provision of this Indenture, the
right of any Holder of a Note to receive payment of principal of, or premium or
Special Interest, if any, and interest on the Note on or after the respective
due dates expressed in the Note, or to bring suit for the enforcement of any
such payment on or after such respective dates, is absolute and unconditional
and shall not be impaired or affected without the consent of the Holder.

Section 6.08.     COLLECTION SUIT BY TRUSTEE.

                  If an Event of Default in payment of principal, premium or
interest specified in Section 6.01(l) or (2) hereof occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express
trust against the Company or the Subsidiary Guarantors (or any other obligor on
the Notes) for the whole amount of unpaid principal, premium and accrued
interest or Special Interest remaining unpaid, together with interest on overdue
principal, premium and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest or Special Interest, in each case
at the rate then borne by the Notes, and such further amounts as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

Section 6.09.     TRUSTEE MAY FILE PROOFS OF CLAIM.

                  The Trustee may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Noteholders allowed in any judicial proceedings relative to the Company or the
Guarantors (or any other obligor upon the Notes), its creditors or its property
and shall be entitled and empowered to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same
after deduction of its charges and expenses to the extent that any such charges
and expenses are not paid out of the estate in any such proceedings and any
custodian in any such judicial proceeding is hereby authorized by each
Noteholder to make such payments to the Trustee, and in the event that the
Trustee shall consent to the making of such payments directly to the
Noteholders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any
Noteholder any plan of reorganization, arrangement, adjustment or composition

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<PAGE>   89

affecting the Notes or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Noteholder in any such
proceeding.

Section 6.10.     PRIORITIES.

                  If the Trustee collects any money pursuant to this Article 6,
it shall pay out the money in the following order:

                  FIRST: to the Trustee for amounts due under Section 7.07
hereof;

                  SECOND: to Noteholders for amounts due and unpaid on the Notes
for principal, premium and Special Interest, if any, and interest as to each,
ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes; and

                  THIRD: to the Company or, to the extent the Trustee collects
any amount from any Guarantor, to such Guarantor.

                  The Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section 6.10.

Section 6.11.     UNDERTAKING FOR COSTS.

                  In any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees and expenses, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by
the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a
suit by a Holder pursuant to Section 6.07 hereof or a suit by Holders of more
than 10% in principal amount of the Notes then outstanding.

                                   ARTICLE 7

                                     TRUSTEE

Section 7.01.     DUTIES OF TRUSTEE.

                  (a) If an Event of Default has occurred and is continuing, the
         Trustee shall exercise such of the rights and powers vested in it by
         this Indenture and use the same degree of care and skill in its
         exercise as a prudent person would exercise under the same
         circumstances in the conduct of such person's own affairs.

                  (b) Except during the continuance of an Event of Default:

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                           (1) The Trustee need perform only those duties that
                  are specifically set forth in this Indenture and no others.

                           (2) In the absence of bad faith on its part, the
                  Trustee may conclusively rely, as to the truth of the
                  statements and the correctness of the opinions expressed
                  therein, upon certificates or opinions furnished to the
                  Trustee and conforming to the requirements of this Indenture
                  but, in the case of any such certificates or opinions which by
                  any provision hereof are specifically required to be furnished
                  to the Trustee, the Trustee shall be under a duty to examine
                  the same to determine whether or not they conform to the
                  requirements of this Indenture (but need not confirm or
                  investigate the accuracy of mathematical calculations or other
                  facts stated therein).

                  (c) The Trustee may not be relieved from liability for its own
         negligent action, its own negligent failure to act, or its own willful
         misconduct, except that:

                           (1) This paragraph does not limit the effect of
                  paragraph (b) of this Section 7.01.

                           (2) The Trustee shall not be liable for any error of
                  judgment made in good faith by a Responsible Officer, unless
                  it is proved that the Trustee was negligent in ascertaining
                  the pertinent facts.

                           (3) The Trustee shall not be liable with respect to
                  any action it takes or omits to take in good faith in
                  accordance with a direction received by it pursuant to
                  Sections 6.02 and 6.05 hereof.

                           (4) No provision of this Indenture shall require the
                  Trustee to expend or risk its own funds or otherwise incur any
                  financial liability in the performance of any of its rights or
                  powers if it shall have reasonable grounds for believing that
                  repayment of such funds or adequate indemnity satisfactory to
                  it against such risk or liability is not reasonably assured to
                  it.

                  (d) Whether or not therein expressly so provided, paragraphs
         (a), (b) and (c) of this Section 7.01 shall govern every provision of
         this Indenture that in any way relates to the Trustee.

                  (e) The Trustee may refuse to perform any duty or exercise any
         right or power unless it receives indemnity reasonably satisfactory to
         it against any loss, liability, expense or fee.

                  (f) The Trustee shall not be liable for interest on any money
         received by it except as the Trustee may agree in writing with the
         Company or any Subsidiary Guarantor. Money held in trust by the Trustee
         need not be segregated from other funds except to the extent required
         by the law.

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Section 7.02.     RIGHTS OF TRUSTEE.

                  Subject to Section 7.01 hereof:

                  (1) The Trustee may rely on any document reasonably believed
         by it to be genuine and to have been signed or presented by the proper
         person. The Trustee need not investigate any fact or matter stated in
         the document.

                  (2) Before the Trustee acts or refrains from acting, it may
         require an Officers' Certificate or an Opinion of Counsel, or both,
         which shall conform to the provisions of Section 13.05 hereof. The
         Trustee shall be protected and shall not be liable for any action it
         takes or omits to take in good faith in reliance on such certificate or
         opinion.

                  (3) The Trustee may act through agents and shall not be
         responsible for the misconduct or negligence of any agent appointed by
         it with due care.

                  (4) The Trustee shall not be liable for any action it takes or
         omits to take in good faith which it reasonably believes to be
         authorized or within its rights or powers.

                  (5) The Trustee may consult with counsel of its selection, and
         the advice or opinion of such counsel as to matters of law shall be
         full and complete authorization and protection from liability in
         respect of any action taken, omitted or suffered by it hereunder in
         good faith and in accordance with the advice or opinion of such
         counsel.

                  (6) The Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Indenture at the request
         or direction of any of the Holders pursuant to this Indenture, unless
         such Holders shall have offered to the Trustee security or indemnity
         satisfactory to the Trustee against the costs, expenses and liabilities
         which might be incurred by it in compliance with such request or
         direction.

                  (7) The Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, direction,
         consent, order, bond, debenture, note, other evidence of indebtedness
         or other paper or document, but the Trustee, in its discretion, may
         make such further inquiry or investigation into such facts or matters
         as it may see fit, and, if the Trustee shall determine to make such
         further investigation, it shall be entitled to examine the books,
         records and premises of the Company, personally or by agent or attorney
         at the sole cost of the Company and shall incur no liability or
         additional liability of any kind by reason of such inquiry or
         investigation.

                  (8) The Trustee shall not be deemed to have notice of any
         Default or Event of Default unless a Responsible Officer of the Trustee
         has actual knowledge thereof or unless written notice of any event
         which is in fact such a default is received by the Trustee at the

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         Corporate Trust Office of the Trustee, and such notice references the
         Notes and this Indenture.

                  (9) The rights, privileges, protections, immunities and
         benefits given to the Trustee, including, without limitation, its right
         to be indemnified, are extended to, and shall be enforceable by, the
         Trustee in each of its capacities hereunder, and each agent, custodian
         and other Person employed to act hereunder.

                  (10) The Trustee may request that the Company deliver an
         Officers' Certificate setting forth the names of individuals and/or
         titles of officers authorized at such time to take specified actions
         pursuant to this Indenture, which Officers' Certificate may be signed
         by any person authorized to sign an Officers' Certificate, including
         any person specified as so authorized in any such certificate
         previously delivered and not superseded.

Section 7.03.     INDIVIDUAL RIGHTS OF TRUSTEE.

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Notes and may make loans to, accept deposits from,
perform services for or otherwise deal with the Company or any Guarantor, or any
Affiliates thereof, with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights. The Trustee, however, shall be
subject to Sections 7.10 and 7.11 hereof.

Section 7.04.     TRUSTEE'S DISCLAIMER.

                  The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the
Company's use of the proceeds from the sale of Notes or any money paid to the
Company pursuant to the terms of this Indenture and it shall not be responsible
for any statement in the Notes other than its certificate of authentication.

Section 7.05.     NOTICE OF DEFAULTS.

                  If a Default occurs and is continuing and if it is actually
known to a Responsible Officer of the Trustee, the Trustee shall mail to each
Noteholder notice of the Default within 90 days after it occurs. Except in the
case of a Default in payment of the principal of, or premium, if any, or
interest on any Note the Trustee may withhold the notice if and so long as the
board of directors of the Trustee, the executive committee or any trust
committee of such board and/or its Responsible Officers in good faith
determine(s) that withholding the notice is in the interests of the Noteholders.

Section 7.06.     REPORTS BY TRUSTEE TO HOLDERS.

                  If required by TIA ss. 313(a), within 60 days after May 15 of
any year, commencing the May 15 following the date of this Indenture, the
Trustee shall mail to each Noteholder a brief report dated as of such May 15
that complies with TIA ss. 313(a). The Trustee also shall comply with TIA ss.
313(b)(2). The Trustee shall also transmit by mail all reports as required by
TIA ss. 313 (c) and TIA ss. 313(d).

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                  Reports pursuant to this Section 7.06 shall be transmitted by
mail:

                  (1) to all registered Holders of Notes, as the names and
         addresses of such Holders appear on the Registrar's books; and

                  (2) to such Holder of Notes as have, within the two years
         preceding such transmission, filed their names and addresses with the
         Trustee for that purpose.

                  A copy of each report at the time of its mailing to
Noteholders shall be filed with the SEC and each stock exchange on which the
Notes are listed. The Company shall promptly notify the Trustee when the Notes
are listed on any stock exchange.

Section 7.07.     COMPENSATION AND INDEMNITY.

                  The Company and the Guarantors shall pay to the Trustee from
time to time such compensation as shall be agreed in writing between the Company
and the Trustee for its services hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust). The Company and the Guarantors shall reimburse the Trustee upon
request for all reasonable disbursements, expenses and advances incurred or made
by it in connection with its duties under this Indenture, including the
reasonable compensation, disbursements and expenses of the Trustee's agents and
counsel.

                  The Company and the Guarantors shall indemnify each of the
Trustee and any predecessor Trustee and their agents for, and hold it harmless
against, any and all loss, damage, claim, liability or reasonable expense,
including taxes (other than taxes based on the income of the Trustee) incurred
by it in connection with the acceptance or performance of its duties under this
Indenture including the reasonable costs and expenses of defending itself
against any claim or liability in connection with the exercise or performance of
any of its powers or duties hereunder (including, without limitation, settlement
costs). The Trustee shall notify the Company and the Guarantors in writing
promptly of any claim asserted against the Trustee for which it may seek
indemnity. However, the failure by the Trustee to so notify the Company shall
not relieve the Company of its obligations hereunder except to the extent the
Company is prejudiced thereby.

                  Notwithstanding the foregoing, the Company and the Guarantors
need not reimburse the Trustee for any expense or indemnify it against any loss
or liability incurred by the Trustee through its negligence or bad faith. To
secure the payment obligations of the Company and the Guarantors in this Section
7.07, the Trustee shall have a lien prior to the Notes on all money or property
held or collected by the Trustee except such money or property held in trust to
pay principal of and interest on particular Notes.

                  The Trustee shall have a lien prior to the Notes as to all
property and funds held by it hereunder for any amount owing it or any

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predecessor Trustee pursuant to this Section, except with respect to funds held
in trust for the benefit of the Holders of particular Notes.

                  When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(7) or (8) hereof occurs, the expenses
and the compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

                  For purposes of this Section 7.07, the term "Trustee" shall
include any trustee appointed pursuant to Article 9.

Section 7.08.     REPLACEMENT OF TRUSTEE.

                  The Trustee may resign by so notifying the Company and the
Guarantors in writing. The Holders of a majority in principal amount of the
outstanding Notes may remove the Trustee by notifying the removed Trustee in
writing and may appoint a successor Trustee with the Company's written consent
which consent shall not be unreasonably withheld. The Company may remove the
Trustee at its election if:

                  (1) the Trustee fails to comply with Section 7.10 hereof;

                  (2) the Trustee is adjudged a bankrupt or an insolvent;

                  (3) a receiver or other public officer takes charge of the
         Trustee or its property;

                  (4) the Trustee otherwise becomes incapable of acting; or

                  (5) a successor corporation becomes successor Trustee pursuant
         to Section 7.09 below.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee.

                  If a successor Trustee does not take office within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee (at the
expense of the Company), the Company or the Holders of a majority in principal
amount of the outstanding Notes may petition any court of competent jurisdiction
for the appointment of a successor Trustee.

                  If the Trustee fails to comply with Section 7.10 hereof, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately following
such delivery, the retiring Trustee shall, subject to its rights under Section
7.07 hereof, transfer all property held by it as Trustee to the successor
Trustee, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and

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duties of the Trustee under this Indenture. A successor Trustee shall mail
notice of its succession to each Noteholder. Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Company's obligations under Section
7.07 hereof shall continue for the benefit of the retiring Trustee.

Section 7.09.     SUCCESSOR TRUSTEE BY CONSOLIDATION, MERGER OR CONVERSION.

                  If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust assets to, another
corporation, subject to Section 7.10 hereof, the successor corporation without
any further act shall be the successor Trustee.

Section 7.10.     ELIGIBILITY; DISQUALIFICATION.

                  This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1) and (2) in every respect. The Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with
TIA 310(b), including the provision in ss. 310(b)(1).

Section 7.11.     PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

                  The Trustee shall comply with TIA ss. 311(a), excluding any
creditor relationship listed in TIA ss. 311 (b). A Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

Section 7.12.     PAYING AGENTS.

                  The Company shall cause each Paying Agent other than the
Trustee to execute and deliver to it and the Trustee an instrument in which such
agent shall agree with the Trustee, subject to the provisions of this Section
7.12:

                  (A) that it will hold all sums held by it as agent for the
         payment of principal of, or premium, if any, or interest on, the Notes
         (whether such sums have been paid to it by the Company or by any
         obligor on the Notes) in trust for the benefit of Holders of the Notes
         or the Trustee;

                  (B) that it will at any time during the continuance of any
         Event of Default, upon written request from the Trustee, deliver to the
         Trustee all sums so held in trust by it together with a full accounting
         thereof; and

                  (C) that it will give the Trustee written notice within three
         (3) Business Days of any failure of the Company (or by any obligor on
         the Notes) in the payment of any installment of the principal of,
         premium, if any, or interest on, the Notes when the same shall be due
         and payable.

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                                   ARTICLE 8

                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

Section 8.01.     WITHOUT CONSENT OF HOLDERS.

                  The Company and the Guarantors, when authorized by a Board
Resolution of each of them, and the Trustee may amend or supplement this
Indenture or the Notes without notice to or consent of any Noteholder:

                  (1) to cure any ambiguity, omission, defect or inconsistency;

                  (2) to provide for the assumption by a successor corporation
         of the obligations of the Company under Section 5.01 hereof;

                  (3) to provide for uncertificated Notes in addition to or in
         place of certificated Notes (provided that the uncertificated Notes are
         issued in registered form for purposes of Section 163(f) of the Code,
         or in a manner such that the uncertificated Notes are described in
         Section 163(f)(2)(B) of the Code);

                  (4) to add additional Guarantees with respect to the Notes or
         release Subsidiary Guarantors from Subsidiary Guarantees as provided by
         the terms hereof;

                  (5) to secure the Notes, add to the covenants of the Company
         for the benefit of the Holders of the Notes or surrender any right or
         power conferred upon the Company;

                  (6) to make any change that does not adversely affect the
         rights of any holder of the Notes;

                  (7) to make any change to the provisions of Article 11
         (Subordination of Securities) that would limit or terminate the
         benefits available to any holder of Senior Debt under such provisions;
         or

                  (8) to comply with any requirement of the Commission in
         connection with the qualification of this Indenture under the Trust
         Indenture Act.

                  The Trustee is hereby authorized to join with the Company and
the Guarantors in the execution of any supplemental indenture authorized or
permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations which may be therein contained, but the Trustee
shall not be obligated to enter into any such supplemental indenture which
adversely affects its own rights, duties or immunities under this Indenture.

                  No amendment may be made to the subordination provisions of
this Indenture that adversely affects the rights of any holder of Designated
Senior Debt then outstanding unless the holders of such Designated Senior Debt
(or their Representative) consent to such change. The consent of the holders of

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the Notes is not necessary to approve the particular form of any proposed
amendment. It is sufficient if such consent approves the substance of the
proposed amendment.

Section 8.02.     WITH CONSENT OF HOLDERS.

                  Subject to Section 6.04, the Company, the Trustee and the
Subsidiary Guarantors, with the consent of the registered holders of a majority
in aggregate principal amount of the Notes then outstanding (including consents
obtained in connection with a tender offer or exchange offer for the Notes) may
amend this Indenture and may waive any past default or compliance with any
provisions (except a default in the payment of principal, premium, interest or
Special Interest and certain covenants and provisions of this Indenture which
cannot be amended without the consent of each holder of an outstanding Note).
The Holders of not less than a majority in aggregate principal amount of the
outstanding Notes may waive compliance in a particular instance by the Company
with any provision of this Indenture or the Notes without notice to any
Noteholder. Subject to Section 8.04, without the consent of each Noteholder,
however, an amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may not:

                  (1) reduce the amount of Notes whose Holders must consent to
         an amendment or waiver to this Indenture or the Notes;

                  (2) reduce the rate of or change the time for payment of
         interest or Special Interest on any Note;

                  (3) reduce the principal of or extend the Stated Maturity of
         any Note;

                  (4) make any Note payable in money other than that stated in
         the Note;

                  (5) impair the right of any Holder of the Notes to receive
         payment of principal of and interest on such Holder's Notes on or after
         the due dates therefor or to institute suit for the enforcement of any
         payment on or with respect to such Holder's Notes or any Subsidiary
         Guarantee;

                  (6) release any Guarantee or security interest that may have
         been granted in favor of the Holders of the Notes other than pursuant
         to the terms of this Indenture or such security interest;

                  (7) reduce the premium payable upon the redemption of any Note
         or change the time at which any Note may be redeemed under Article 3
         hereof;

                  (8) reduce the premium payable in connection with a Change of
         Control Offer or, at any time after a Change of Control has occurred,
         change the time at which the Change of Control Offer relating thereto
         must be made or at which the Notes must be repurchased pursuant to such
         Change of Control Offer;

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<PAGE>   98

                  (9) at any time after the Company is obligated to make a
         Prepayment Offer with the Excess Proceeds from Asset Sales, change the
         time at which such Prepayment Offer must be made or at which the Notes
         must be repurchased pursuant thereto;

                  (10) make any change to the provisions of Article 11
         (Subordination of Securities) that would adversely affect the Holders
         of the Notes; or

                  (11) make any change in any Subsidiary Guarantee that would
         adversely affect the Holders of the Notes.

                  After an amendment, supplement or waiver under this section
becomes effective, the Company shall mail to the Holders a notice briefly
describing the amendment, supplement or waiver; PROVIDED, HOWEVER, the failure
to give such notice to all Holders of the Notes, or any defect therein, will not
impair or affect the validity of the amendment.

                  Upon the request of the Company, accompanied by a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the receipt by the Trustee of evidence reasonably satisfactory to the
Trustee of the consent of the Noteholders as aforesaid and upon receipt by the
Trustee of the documents described in Section 8.06 hereof, the Trustee shall
join with the Company and the Guarantors in the execution of such supplemental
indenture unless such supplemental indenture affects the Trustee's own rights,
duties or immunities under this Indenture, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to consent to any
indenture supplemental hereto. If a record date is fixed, the Holders on such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to consent to such supplemental indenture, whether or not such Holders
remain Holders after such record date; provided, that unless such consent shall
have become effective by virtue of the requisite percentage having been obtained
prior to the date which is 90 days after such record date, any such consent
previously given shall automatically and without further action by any Holder be
canceled and of no further effect.

                  It shall not be necessary for the consent of the Holders under
this Section 8.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.

Section 8.03.     COMPLIANCE WITH TRUST INDENTURE ACT.

                  Every amendment to or supplement of this Indenture or the
Notes shall comply with the TIA as then in effect.

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Section 8.04.     REVOCATION AND EFFECT OF CONSENTS.

                  Until an amendment, supplement, waiver or other action becomes
effective, a consent to it by a Holder of a Note is a continuing consent
conclusive and binding upon such Holder and every subsequent Holder of the same
Note or portion thereof, and of any Note issued upon the transfer thereof or in
exchange therefor or in place thereof, even if notation of the consent is not
made on any such Note. Any such Holder or subsequent Holder, however, may revoke
the consent as to his Note or portion of a Note, if the Trustee receives the
notice of revocation before the date the amendment, supplement, waiver or other
action becomes effective.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders entitled to consent to any
amendment, supplement, or waiver. If a record date is fixed, then,
notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be
entitled to consent to such amendment, supplement, or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date. No such consent shall be valid or effective for more
than 90 days after such record date unless the consent of the requisite number
of Holders has been obtained.

                  After an amendment, supplement, waiver or other action becomes
effective, it shall bind every Noteholder, unless it makes a change described in
any of clauses (1) through (11) of Section 8.02 hereof. In that case the
amendment, supplement, waiver or other action shall bind each Holder of a Note
who has consented to it and every subsequent Holder of a Note or portion of a
Note that evidences the same debt as the consenting Holder's Note.

Section 8.05.     NOTATION ON OR EXCHANGE OF NOTES.

                  If an amendment, supplement, or waiver changes the terms of a
Note, the Trustee may request the Holder of the Note to deliver it to the
Trustee. In such case, the Trustee shall place an appropriate notation on the
Note about the changed terms and return it to the Holder. Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Note shall
issue and the Trustee shall authenticate a new security that reflects the
changed terms. Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

Section 8.06.     TRUSTEE TO SIGN AMENDMENTS, ETC.

                  The Trustee shall sign any amendment, supplement or waiver
authorized pursuant to this Article 8 if the amendment, supplement or waiver
does not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may, but need not, sign it. In signing or
refusing to sign such amendment, supplement or waiver the Trustee shall be
entitled to receive and, subject to Section 7.01 hereof, shall be fully
protected in relying upon an Officers' Certificate and an Opinion of Counsel

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stating that such amendment, supplement or waiver is authorized or permitted by
this Indenture. The Company or any Guarantor may not sign an amendment or
supplement until the Board of Directors of the Company or such Guarantor, as
appropriate, approves it.

                                   ARTICLE 9

                       DISCHARGE OF INDENTURE; DEFEASANCE

Section 9.01.     DISCHARGE OF INDENTURE.

                  The Company and the Subsidiary Guarantors may terminate all of
their obligations under the Notes, the Subsidiary Guarantees and this Indenture,
except the obligations referred to in the last paragraph of this Section 9.01,
if there shall have been canceled by the Trustee or delivered to the Trustee for
cancellation all Notes theretofore authenticated and delivered (other than any
Notes that are asserted to have been destroyed, lost or stolen and that shall
have been replaced as provided in Section 2.07 hereof) and the Company has paid
all sums payable by it hereunder or deposited all required sums with the
Trustee.

                  After such delivery the Trustee upon request shall acknowledge
in writing the discharge of the Company's and the Subsidiary Guarantors'
obligations under the Notes, the Subsidiary Guarantees and this Indenture except
for those surviving obligations specified below.

                  Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company in Sections 7.07, 9.05 and 9.06 hereof
shall survive.

Section 9.02.     LEGAL DEFEASANCE.

                  The Company may at its option, by Board Resolution, be
discharged from its obligations with respect to the Notes and the Subsidiary
Guarantors discharged from their obligations under the Subsidiary Guarantees on
the date the conditions set forth in Section 9.04 below are satisfied
(hereinafter, "LEGAL DEFEASANCE"). For this purpose, such Legal Defeasance means
that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by the Notes and to have satisfied all its other
obligations under such Notes and this Indenture insofar as such Notes are
concerned (and the Trustee, at the expense of the Company, shall, subject to
Section 9.06 hereof, execute proper instruments acknowledging the same), except
for the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of outstanding Notes to receive solely from
the trust funds described in Section 9.04 hereof and as more fully set forth in
such Section, payments in respect of the principal of, premium, if any, and
interest and Special Interest, if any, on such Notes when such payments are due,
(B) the Company's obligations with respect to the Notes under Sections 2.1
through 2.10 hereof, Section 2.13 hereof and Section 4.19 hereof, (C) the
rights, powers, trusts, duties, and immunities of the Trustee hereunder
(including claims of, or payments to, the Trustee under or pursuant to Section

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7.07 hereof) and (D) this Article 9. If the Company exercises its Legal
Defeasance option, payment of the Notes may not be accelerated because of an
Event of Default with respect thereto and each Subsidiary Guarantor will be
released from all of its obligations under its Subsidiary Guarantee. Subject to
compliance with this Article 9, the Company may exercise its option under this
Section 9.02 with respect to the Notes notwithstanding the prior exercise of its
option under Section 9.03 below with respect to the Notes.

Section 9.03.     COVENANT DEFEASANCE.

                  At the option of the Company, pursuant to a Board Resolution,
the Company and the Subsidiary Guarantors shall be released from (A) their
respective obligations under Sections 4.02 through 4.18 hereof, inclusive, (B)
the operation of Sections 6.01(5) through (8) inclusive, and (C) their
respective obligations under Sections 5.01(a)(5) or 5.01(b)(5) with respect to
the outstanding Notes on and after the date the conditions set forth in Section
9.04 hereof are satisfied (hereinafter, "COVENANT DEFEASANCE"). For this
purpose, such Covenant Defeasance means that the Company and the Subsidiary
Guarantors may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such specified Section or portion
thereof, whether directly or indirectly by reason of any reference elsewhere
herein to any such specified section or portion thereof or by reason of any
reference in any such specified Section or portion thereof to any other
provision herein or in any other document, but the remainder of this Indenture
and the Notes shall be unaffected thereby. If the Company exercises its Covenant
Defeasance option, payment of the Notes may not be accelerated because of an
Event of Default specified in Section 6.01(4), Sections 6.01(5), (6), (7) or (8)
with respect to Significant Subsidiaries, or Section 6.01(9) or because of the
failure of the Company to comply with Sections 5.01(a)(5) or 5.01(b)(5). If the
Company exercises its Covenant Defeasance option, each Subsidiary Guarantor will
be released from all its obligations under its Subsidiary Guarantee.

Section 9.04.     CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.

                  The following shall be the conditions to application of
Section 9.02 or Section 9.03 hereof to the outstanding Notes:

                  (1) the Company shall irrevocably have deposited or caused to
         be deposited with the Trustee (or another trustee satisfying the
         requirements of Section 7.10 hereof who shall agree to comply with the
         provisions of this Article 9 applicable to it) as funds in trust for
         the purpose of making the following payments, specifically pledged as
         security for, and dedicated solely to, the benefit of the Holders of
         the Notes, (A) money in an amount, or (B) U.S. Government Obligations
         which through the scheduled payment of principal and interest in
         respect thereof in accordance with their terms will provide, not later
         than the due date of any payment, money in an amount sufficient, in the
         opinion of a nationally-recognized firm of independent public
         accountants expressed in a written certification thereof delivered to
         the Trustee, to pay and discharge, and which shall be applied by the

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         Trustee (or other qualifying trustee) to pay and discharge, the
         principal of, premium, if any, and accrued interest or Special
         Interest, if any, on the outstanding Notes at the maturity date of such
         principal, premium, if any, or interest, or on dates for payment and
         redemption of such principal, premium, if any, and interest selected in
         accordance with the terms of this Indenture and of the Notes, without
         reinvestment on the deposited U.S. Government Obligations and without
         reinvestment of any deposited money;

                  (2) no Event of Default or Default with respect to the Notes
         shall have occurred and be continuing on the date of such deposit or
         after giving effect to such deposit, or shall have occurred and be
         continuing at any time during the period ending on the 123rd day after
         the date of such deposit or, if longer, ending on the day following the
         expiration of the longest preference period under any Bankruptcy Law
         applicable to the Company in respect of such deposit (it being
         understood that this condition shall not be deemed satisfied until the
         expiration of such period);

                  (3) such Legal Defeasance or Covenant Defeasance shall not
         cause the Trustee to have a conflicting interest for purposes of the
         TIA with respect to any securities of the Company;

                  (4) such Legal Defeasance or Covenant Defeasance shall not
         result in a breach or violation of, or constitute default under any
         other agreement or instrument to which the Company is a party or by
         which it is bound;

                  (5) the Company shall have delivered to the Trustee an Opinion
         of Counsel stating that, as a result of such Legal Defeasance or
         Covenant Defeasance, neither the trust nor the Trustee will be required
         to register as an investment company under the Investment Company Act
         of 1940, as amended;

                  (6) in the case of an election under Section 9.02 above, the
         Company shall have delivered to the Trustee an Opinion of Counsel
         stating that (i) the Company has received from, or there has been
         published by, the Internal Revenue Service a ruling to the effect that
         or (ii) there has been a change in any applicable Federal income tax
         law with the effect that, and such opinion shall confirm that, the
         Holders of the outstanding Notes or persons in their positions will not
         recognize income, gain or loss for Federal income tax purposes as a
         result of such Legal Defeasance and will be subject to Federal income
         tax on the same amounts, in the same manner, and at the same times as
         would have been the case if such Legal Defeasance had not occurred;

                  (7) in the case of an election under Section 9.03 hereof, the
         Company shall have delivered to the Trustee an Opinion of Counsel to
         the effect that the Holders of the outstanding Notes will not recognize
         income, gain or loss for Federal income tax purposes as a result of
         such Covenant Defeasance and will be subject to Federal income tax on
         the same amounts, in the same manner and at the same times as would
         have been the case if such Covenant Defeasance had not occurred;

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                  (8) the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent provided for relating to either the Legal
         Defeasance under Section 9.02 above or the Covenant Defeasance under
         Section 9.03 hereof (as the case may be) have been complied with; and

                  (9) the Company shall have paid or duly provided for payment
         under terms mutually satisfactory to the Company and the Trustee all
         amounts then due to the Trustee pursuant to Section 7.07 hereof.

Section 9.05.     DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD
                  IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

                  All money and U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee pursuant to Section 9.04 hereof in
respect of the outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of such Notes, of all sums due and to become due
thereon in respect of principal, premium, if any, and accrued interest, but such
money need not be segregated from other funds except to the extent required by
law.

                  The Company and the Subsidiary Guarantors shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Government Obligations deposited pursuant to Section
9.04 hereof or the principal, premium, if any, and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the outstanding Notes.

                  Anything in this Article 9 to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 9.04 hereof which, in the opinion of a nationally-recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

Section 9.06.     REINSTATEMENT.

                  If the Trustee or Paying Agent is unable to apply any money or
U.S. Government Obligations in accordance with Section 9.01, 9.02 or 9.03 hereof
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company's and each Subsidiary Guarantor's obligations
under this Indenture, the Notes and the Subsidiary Guarantees shall be revived
and reinstated as though no deposit had occurred pursuant to this Article 9
until such time as the Trustee or Paying Agent is permitted to apply all such

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money or U.S. Government Obligations in accordance with Section 9.01 hereof;
PROVIDED, HOWEVER, that if the Company or the Subsidiary Guarantors have made
any payment of principal of, premium, if any, or accrued interest on any Notes
because of the reinstatement of their obligations, the Company or the Subsidiary
Guarantors, as the case may be, shall be subrogated to the rights of the Holders
of such Notes to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.

Section 9.07.     MONEYS HELD BY PAYING AGENT.

                  In connection with the satisfaction and discharge of this
Indenture, all moneys then held by any Paying Agent under the provisions of this
Indenture shall, upon demand of the Company, be paid to the Trustee, or if
sufficient moneys have been deposited pursuant to Section 9.01 hereof, to the
Company (or, if such moneys had been deposited by the Subsidiary Guarantors, to
such Subsidiary Guarantors), and thereupon such Paying Agent shall be released
from all further liability with respect to such moneys.

Section 9.08.     MONEYS HELD BY TRUSTEE.

                  Any moneys deposited with the Trustee or any Paying Agent or
then held by the Company or the Subsidiary Guarantors in trust for the payment
of the principal of, or premium, if any, or interest on any Note that are not
applied but remain unclaimed by the Holder of such Note for two years after the
date upon which the principal of, or premium, if any, or interest on such Note
shall have respectively become due and payable shall be repaid to the Company
(or, if appropriate, the Subsidiary Guarantors) upon Company Request, or if such
moneys are then held by the Company or the Subsidiary Guarantors in trust, such
moneys shall be released from such trust; and the Holder of such Note entitled
to receive such payment shall thereafter, as an unsecured general creditor, look
only to the Company and the Subsidiary Guarantors for the payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or any such
Paying Agent, before being required to make any such repayment, may, at the
expense of the Company and the Subsidiary Guarantors, either mail to each
Noteholder affected, at the address shown in the register of the Notes
maintained by the Registrar pursuant to Section 2.03 hereof, or cause to be
published once a week for two successive weeks, in a newspaper published in the
English language, customarily published each Business Day and of general
circulation in The City of New York, New York, a notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such mailing or publication, any unclaimed balance of
such moneys then remaining will be repaid to the Company. After payment to the
Company or the Subsidiary Guarantors or the release of any money held in trust
by the Company or any Subsidiary Guarantors, as the case may be, Noteholders
entitled to the money must look only to the Company and the Subsidiary
Guarantors for payment as general creditors unless applicable abandoned property
law designates another person.

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                                   ARTICLE 10

                             GUARANTEE OF SECURITIES

Section 10.01.    SUBSIDIARY GUARANTEE.

                  Subject to the provisions of this Article 10, each Subsidiary
Guarantor hereby jointly and severally unconditionally guarantees to each Holder
and to the Trustee, on behalf of the Holders, (i) the due and punctual payment
of the principal of, and premium, if any, and interest and Special Interest, if
any, on the Notes, when and as the same shall become due and payable, whether at
maturity, by acceleration or otherwise, the due and punctual payment of interest
on the overdue principal of, and premium, if any, and interest on the Notes, to
the extent lawful, and the due and punctual performance of all other Obligations
of the Company to the Holders or the Trustee all in accordance with the terms of
such Note and this Indenture, and (ii) in the case of any extension of time of
payment or renewal of any Notes or any of such other Obligations, that the same
will be promptly paid in full when due or performed in accordance with the terms
of the extension or renewal, at stated maturity, by acceleration or otherwise.
Each Subsidiary Guarantor hereby agrees that its obligations hereunder shall be
absolute and unconditional, irrespective of, and shall be unaffected by, any
invalidity, irregularity or unenforceability of any such Note or this Indenture,
any failure to enforce the provisions of any such Note or this Indenture, any
waiver, modification or indulgence granted to the Company with respect thereto
by the Holder of such Note or the Trustee, or any other circumstances which may
otherwise constitute a legal or equitable discharge of a surety or such
Subsidiary Guarantor.

                  Each Subsidiary Guarantor hereby waives diligence,
presentment, filing of claims with a court in the event of merger or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest or notice with respect to any such Note or the Debt evidenced thereby
and all demands whatsoever, and covenants that this Subsidiary Guarantee will
not be discharged as to any such Note except by payment in full of the principal
thereof, premium if any, and interest thereon and as provided in Section 9.01
hereof. Each Subsidiary Guarantor further agrees that, as between such
Subsidiary Guarantor, on the one hand, and the Holders and the Trustee, on the
other hand, (i) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in Article 6 hereof for the purposes of this Subsidiary
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Obligations guaranteed hereby, and (ii) in
the event of any declaration of acceleration of such Obligations as provided in
Article 6 hereof, such Obligations (whether or not due and payable) shall
forthwith become due and payable by each Subsidiary Guarantor for the purpose of
this Subsidiary Guarantee. In addition, without limiting the foregoing
provisions, upon the effectiveness of an acceleration under Article 6 hereof,
the Trustee shall promptly make a demand for payment on the Notes under the
Subsidiary Guarantee provided for in this Article 10 and not discharged.

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                  The Subsidiary Guarantee set forth in this Section 10.01 shall
not be valid or become obligatory for any purpose with respect to a Note until
the certificate of authentication on such Note shall have been signed by or on
behalf of the Trustee.

Section 10.02.    EXECUTION AND DELIVERY OF GUARANTEES.

                  To evidence the Subsidiary Guarantee set forth in this Article
10, each Subsidiary Guarantor hereby agrees that a notation of such Subsidiary
Guarantee shall be placed on each Note authenticated and made available for
delivery by the Trustee and that this Subsidiary Guarantee shall be executed on
behalf of each Subsidiary Guarantor by the manual or facsimile signature of an
Officer of each Subsidiary Guarantor.

                  Each Subsidiary Guarantor hereby agrees that the Subsidiary
Guarantee set forth in Section 10.01 shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such
Subsidiary Guarantee.

                  If an Officer of a Subsidiary Guarantor whose signature is on
the Subsidiary Guarantee no longer holds that office at the time the Trustee
authenticates the Note on which the Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee shall be valid nevertheless.

                  The delivery of any Note by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Subsidiary Guarantee set forth in this Indenture on behalf of each Subsidiary
Guarantor.

Section 10.03.    LIMITATION OF SUBSIDIARY GUARANTEE.

                  The obligations of each Subsidiary Guarantor are limited to
the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Subsidiary Guarantor (including, without limitation,
any guarantees of Senior Debt) and after giving effect to any collections from
or payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Subsidiary
Guarantee or pursuant to its contribution obligations under this Indenture,
result in the obligations of such Subsidiary Guarantor under the Subsidiary
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
federal or state law. Each Subsidiary Guarantor that makes a payment or
distribution under a Subsidiary Guarantee shall be entitled to a contribution
from each other Subsidiary Guarantor and the Company in a pro rata amount based
on the proportion that the net worth of the Company or the relevant Subsidiary
Guarantor represents relative to the aggregate net worth of the Company and all
of the Subsidiary Guarantors combined.

Section 10.04.    ADDITIONAL SUBSIDIARY GUARANTORS.

                  The Company covenants and agrees that it will cause any Person
which becomes obligated to guarantee the Notes, pursuant to the terms of Section
4.14 hereof, to execute a guarantee satisfactory in form and substance to the
Trustee pursuant to which such Subsidiary Guarantor shall guarantee the

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obligations of the Company under the Notes and this Indenture in accordance with
this Article 10 with the same effect and to the same extent as if such Person
had been named herein as a Subsidiary Guarantor.

Section 10.05.    RELEASE OF SUBSIDIARY GUARANTOR.

                  A Subsidiary Guarantor shall be released from all of its
obligations under its Subsidiary Guarantee if:

                  (i) the Company or such Subsidiary Guarantor has sold all or
         substantially all of the assets of such Subsidiary Guarantor; or

                  (ii) the Company and its Restricted Subsidiaries have sold all
         of the Capital Stock of the Subsidiary Guarantor owned by them, in each
         case in a transaction in compliance with Sections 4.10 or 5.01 hereof
         (as applicable);

and in each such case, the Subsidiary Guarantor has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to such transactions have been
complied with.

Notwithstanding the foregoing, upon designation of a Restricted Subsidiary as an
Unrestricted Subsidiary in compliance with Section 4.13, such Restricted
Subsidiary shall, by execution and delivery of a supplemental indenture in form
satisfactory to the Trustee, be released from any Subsidiary Guarantee
previously made by such Restricted Subsidiary.

Section 10.06.    SUBSIDIARY GUARANTEE OBLIGATIONS SUBORDINATE TO GUARANTOR
                  SENIOR DEBT.

                  Each Subsidiary Guarantor covenants and agrees, and each
Holder of Notes, by its acceptance thereof, likewise covenants and agrees, that
to the extent and in the manner hereinafter set forth in this Article 10, the
Debt represented by the Subsidiary Guarantee and the payment of the principal
of, premium, if any, interest on and Special Interest, if any, on the Notes
pursuant to the Subsidiary Guarantee by such Subsidiary Guarantor are hereby
expressly made subordinate and subject in right of payment as provided in this
Article 10 to the prior payment in full in cash or Cash Equivalents or, as
acceptable to the holders of such Guarantor Senior Debt, in any other manner, of
all Guarantor Senior Debt of such Subsidiary Guarantor.

                  This Section 10.06 and the following Sections 10.07 through
10.11 shall constitute a continuing offer to all Persons who, in reliance upon
such provisions, become holders of or continue to hold Guarantor Senior Debt of
any Subsidiary Guarantor; and such provisions are made for the benefit of the
holders of Guarantor Senior Debt of each Subsidiary Guarantor; and such holders
are made obligees hereunder and they or each of them may enforce such
provisions.

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Section 10.07.    PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC., OF A
                  SUBSIDIARY GUARANTOR.

                  In the event of (a) any insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding in connection therewith, relative to any Subsidiary Guarantor
or to its creditors, as such, or to its assets, whether voluntary or
involuntary, or (b) any liquidation, dissolution or other winding-up of any
Subsidiary Guarantor, whether voluntary or involuntary and whether or not
involving insolvency or bankruptcy or (c) any general assignment for the benefit
of creditors or any other marshaling of assets or liabilities of any Subsidiary
Guarantor, then and in any such event:

                  (1) the holders of all Guarantor Senior Debt of such
         Subsidiary Guarantor shall be entitled to receive payment in full in
         cash or Cash Equivalents or, as acceptable to the holders of such
         Guarantor Senior Debt, in any other manner, of all amounts due on or in
         respect of all such Guarantor Senior Debt, or provision shall be made
         for such payment, before the Holders of the Notes are entitled to
         receive, pursuant to the Subsidiary Guarantee of such Subsidiary
         Guarantor, any payment or distribution of any kind or character by such
         Guarantor on account of any of its obligations on its Guarantee; and

                  (2) any payment or distribution of assets of such Subsidiary
         Guarantor of any kind or character, whether in cash, property or
         securities, by set-off or otherwise, to which the Holders or the
         Trustee would be entitled but for the subordination provisions of this
         Article 10 shall be paid by the liquidating trustee or agent or other
         Person making such payment or distribution, whether a trustee in
         bankruptcy, a receiver or liquidating trustee or otherwise, directly to
         the holders of Guarantor Senior Debt of such Subsidiary Guarantor or
         their representative or representatives or to the trustee or trustees
         under any indenture under which any instruments evidencing any of such
         Guarantor Senior Debt may have been issued, ratably according to the
         aggregate amounts remaining unpaid on account of such Guarantor Senior
         Debt held or represented by each, to the extent necessary to make
         payment in full in cash, Cash Equivalents or, as acceptable to the
         holders of such Guarantor Senior Debt, in any other manner, of all such
         Guarantor Senior Debt remaining unpaid, after giving effect to any
         concurrent payment or distribution to the holders of such Guarantor
         Senior Debt; and

                  (3) in the event that, notwithstanding the foregoing
         provisions of this Section 10.07, the Trustee or the Holder of any Note
         shall have received any payment or distribution of assets of such
         Subsidiary Guarantor of any kind or character, whether in cash,
         property or securities, including, without limitation, by way of
         set-off or otherwise, in respect of any of its Obligations on its
         Subsidiary Guarantee before all Guarantor Senior Debt of such
         Subsidiary Guarantor is paid in full or payment thereof provided for,
         then and in such event such payment or distribution shall be paid over
         or delivered forthwith to the trustee in bankruptcy, receiver,
         liquidating trustee, custodian, assignee, agent or other Person making

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         payment or distribution of assets of such Subsidiary Guarantor for
         application to the payment of all such Guarantor Senior Debt remaining
         unpaid, to the extent necessary to pay all of such Guarantor Senior
         Debt in full in cash, Cash Equivalents or, as acceptable to the holders
         of such Guarantor Senior Debt, any other manner, after giving effect to
         any concurrent payment or distribution to or for the holders of such
         Guarantor Senior Debt.

                  The consolidation of a Subsidiary Guarantor with, or the
merger of a Subsidiary Guarantor with or into, another Person or the liquidation
or dissolution of a Guarantor following the conveyance, transfer or lease of its
properties and assets substantially as an entirety to another Person upon the
terms and conditions set forth in Article 5 hereof shall not be deemed a
dissolution, winding-up, liquidation, reorganization, assignment for the benefit
of creditors or marshaling of assets and liabilities of such Subsidiary
Guarantor for the purposes of this Article 10 if the Person formed by such
consolidation or the surviving entity of such merger or the Person which
acquires by conveyance, transfer or lease such properties and assets
substantially as an entirety, as the case may be, shall, as a part of such
consolidation, merger, conveyance, transfer or lease, comply with the conditions
set forth in such Article 5 hereof.

Section 10.08.    SUSPENSION OF SUBSIDIARY GUARANTEE OBLIGATIONS WHEN
                  GUARANTOR SENIOR DEBT IN DEFAULT.

                  (a) Unless Section 10.07 hereof shall be applicable, after the
occurrence of a Payment Default, no payment or distribution of any assets or
securities of a Subsidiary Guarantor (or any Restricted Subsidiary or Subsidiary
of such Subsidiary Guarantor) of any kind or character (including, without
limitation, cash, Property and any payment or distribution which may be payable
or deliverable by reason of the payment of any other Debt of such Subsidiary
Guarantor being subordinated to its Obligations on its Subsidiary Guarantee) may
be made by or on behalf of such Subsidiary Guarantor (or any Restricted
Subsidiary or Subsidiary of such Subsidiary Guarantor), including, without
limitation, by way of set-off or otherwise, for or on account of its Obligations
on its Subsidiary Guarantee, and neither the Trustee nor any holder or owner of
any Notes shall take or receive from any Subsidiary Guarantor (or any Restricted
Subsidiary or Subsidiary of such Subsidiary Guarantor), directly or indirectly
in any manner, payment in respect of all or any portion of its Obligations on
its Subsidiary Guarantee following the delivery by the representative of the
holders of Guarantor Senior Debt (the "GUARANTOR REPRESENTATIVE") to the Trustee
of written notice of the occurrence of a Payment Default, and in any such event,
such prohibition shall continue until (A) such Payment Default has been cured or
waived or has ceased to exist, or (B) such Designated Senior Debt has been paid
in full in cash or Cash Equivalents; PROVIDED, HOWEVER, that the Company may pay
the Notes without regard to the foregoing if the Company and Trustee receive
written notice approving such payment from the Guarantor Representative of such
issue of Designated Senior Debt.

         At such time as the prohibition set forth in the preceding sentence
shall no longer be in effect, subject to the provisions of the following
paragraph (b), such Subsidiary Guarantor shall resume making any and all
required payments in respect of its obligations under its Subsidiary Guarantee.

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                  (b) Unless Section 10.07 hereof shall be applicable, upon the
occurrence of a Non-Payment Event of Default on Designated Senior Debt, no
payment or distribution of any assets of such Subsidiary Guarantor of any kind
or character shall be made by such Subsidiary Guarantor, including, without
limitation, by way of set-off or otherwise, on account of any of its obligations
on its Subsidiary Guarantee for a period (the "GUARANTEE PAYMENT BLOCKAGE
PERIOD") commencing on the date of receipt by the Trustee of written notice from
the Guarantor Representative of such Non-Payment Event of Default, unless and
until (subject to any blockage of payments that may then be in effect under the
preceding paragraph (a)) the earliest to occur of the following events: (w) more
than 179 days shall have elapsed since the date of receipt of such written
notice by the Trustee, (x) such Non-Payment Event of Default shall have been
cured or waived, or is otherwise no longer continuing (y) such Designated Senior
Debt shall have been discharged or paid in full in cash or Cash Equivalents or
(z) such Guarantee Payment Blockage Period shall have been terminated by written
notice to such Subsidiary Guarantor or the Trustee from the Guarantor
Representative initiating such Guarantee Payment Blockage Period, or the holders
of at least a majority in principal amount of such issue of Designated Senior
Debt, after which, in the case of clause (w), (x), (y) or (z), such Subsidiary
Guarantor shall resume making any and all required payments in respect of its
Obligations on its Subsidiary Guarantee. Notwithstanding any other provisions of
this Indenture, no Non-Payment Event of Default with respect to Designated
Senior Debt which existed or was continuing on the date of the commencement of
any Guarantee Payment Blockage Period initiated by the Guarantor Representative
shall be, or be made, the basis for the commencement of a second Guarantee
Payment Blockage Period initiated by the Guarantor Representative unless such
event of default shall have been cured or waived for a period of not less than
90 consecutive days. In no event shall a Guarantee Payment Blockage Period
extend beyond 179 days from the date of the receipt by the Trustee and the
Company of the notice referred to in this Section 10.08(b) or, in the event of a
Non-Payment Event of Default which formed the basis for a Payment Blockage
Period under Section 11.03(b) hereof, 179 days from the date of the receipt by
the Trustee of the notice referred to in Section 11.03(b) (the "INITIAL
GUARANTEE BLOCKAGE PERIOD"). Any number of additional Guarantee Payment Blockage
Periods may be commenced during the Initial Guarantee Blockage Period; PROVIDED,
HOWEVER, that no such additional Guarantee Payment Blockage Period shall extend
beyond the Initial Guarantee Blockage Period. After the expiration of the
Initial Guarantee Blockage Period, no Guarantee Payment Blockage Period may be
commenced under this Section 10.08(b) and no Payment Blockage Period may be
commenced under Section 11.03(b) hereof until at least 180 consecutive days have
elapsed from the last day of the Initial Guarantee Blockage Period.

                  (c) In the event that, notwithstanding the foregoing, the
Trustee or the Holder of any Note shall have received any payment from a
Subsidiary Guarantor prohibited by the foregoing provisions of this Section
10.08, then and in such event such payment shall be paid over and delivered
forthwith to the Guarantor Representative initiating the Guarantee Payment
Blockage Period, in trust for distribution to the holders of Guarantor Senior
Debt or, if no amounts are then due in respect of Guarantor Senior Debt,
promptly returned to the Subsidiary Guarantor, or as a court of competent
jurisdiction shall direct.

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Section 10.09.    SUBROGATION TO RIGHTS OF HOLDERS OF GUARANTOR SENIOR DEBT.

                  Upon the payment in full of all amounts payable under or in
respect of all Guarantor Senior Debt of a Subsidiary Guarantor, the Holders
shall be subrogated to the rights of the holders of such Guarantor Senior Debt
to receive payments and distributions of cash, Property and securities of such
Subsidiary Guarantor made on such Guarantor Senior Debt until all amounts due to
be paid under the Subsidiary Guarantee shall be paid in full. For the purposes
of such subrogation, no payments or distributions to holders of Guarantor Senior
Debt of any cash, Property or securities to which Holders of the Notes or the
Trustee would be entitled except for the provisions of this Article 10, and no
payments over pursuant to the provisions of this Article 10 to holders of
Guarantor Senior Debt by Holders of the Notes or the Trustee, shall, as among
each Subsidiary Guarantor, its creditors other than holders of Guarantor Senior
Debt and the Holders of the Notes, be deemed to be a payment or distribution by
such Subsidiary Guarantor to or on account of such Guarantor Senior Debt.

                  If any payment or distribution to which the Holders would
otherwise have been entitled but for the provisions of this Article 10 shall
have been applied, pursuant to the provisions of this Article 10, to the payment
of all amounts payable under Guarantor Senior Debt, then and in such case, the
Holders shall be entitled to receive from the holders of such Guarantor Senior
Debt at the time outstanding any payments or distributions received by such
holders of Guarantor Senior Debt in excess of the amount sufficient to pay all
amounts payable under or in respect of such Guarantor Senior Debt in full in
cash or Cash Equivalents.

Section 10.10.    GUARANTEE SUBORDINATION PROVISIONS SOLELY TO DEFINE RELATIVE
                  RIGHTS.

                  The subordination provisions of this Article 10 are and are
intended solely for the purpose of defining the relative rights of the Holders
of the Notes on the one hand and the holders of Guarantor Senior Debt on the
other hand. Nothing contained in this Article 10 or elsewhere in this Indenture
or in the Notes is intended to or shall (a) impair, as among each Subsidiary
Guarantor, its creditors other than holders of its Guarantor Senior Debt and the
Holders of the Notes, the obligation of such Subsidiary Guarantor, which is
absolute and unconditional, to make payments to the Holders in respect of its
Obligations on its Subsidiary Guarantee in accordance with its terms; or (b)
affect the relative rights against such Subsidiary Guarantor of the Holders of
the Notes and creditors of such Subsidiary Guarantor other than the holders of
the Guarantor Senior Debt; or (c) prevent the Trustee or the Holder of any Note
from exercising all remedies otherwise permitted by applicable law upon a
Default or an Event of Default under this Indenture, subject to the rights, if
any, under this Article 10 of the holders of Guarantor Senior Debt (1) in any
case, proceeding, dissolution, liquidation or other winding-up, assignment for
the benefit of creditors or other marshaling of assets and liabilities of a
Subsidiary Guarantor referred to in Section 10.07 hereof, to receive, pursuant
to and in accordance with such Section, cash, Property and securities otherwise
payable or deliverable to the Trustee or such Holder, or (2) under the
conditions specified in Section 10.08 hereof, to prevent any payment prohibited
by such Section or enforce their rights pursuant to Section 10.08(c) hereof.

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                  The failure by any Subsidiary Guarantor to make a payment in
respect of its obligations on its Subsidiary Guarantee by reason of any
provision of this Article 10 shall not be construed as preventing the occurrence
of a Default or an Event of Default hereunder.

Section 10.11.    APPLICATION OF CERTAIN ARTICLE 11 PROVISIONS.

                  The provisions of Sections 11.04, 11.07, 11.08, 11.09, 11.10,
11.12 and 11.13 hereof shall apply, MUTATIS MUTANDIS, to each Subsidiary
Guarantor and their respective holders of Guarantor Senior Debt and the rights,
duties and obligations set forth therein shall govern the rights, duties and
obligations of each Subsidiary Guarantor, the holders of Guarantor Senior Debt,
the Holders and the Trustee with respect to the Subsidiary Guarantee and all
references therein to Article 11 hereof shall mean this Article 10.

                                   ARTICLE 11

                             SUBORDINATION OF NOTES

Section 11.01.    NOTES SUBORDINATE TO SENIOR DEBT.

                  The Company covenants and agrees, and each Holder of Notes, by
its acceptance thereof, likewise covenants and agrees, that, to the extent and
in the manner hereinafter set forth in this Article 11, the Debt represented by
the Notes and the payment of the principal of, premium, if any, interest on, and
Special Interest, if any, on the Notes are hereby expressly made subordinate and
subject in right of payment as provided in this Article 11 to the prior payment
in full in cash or Cash Equivalents or, as acceptable to the holders of Senior
Debt, in any other manner, of all Senior Debt.

                  This Article 11 shall constitute a continuing offer to all
Persons who, in reliance upon such provisions, become holders of or continue to
hold Senior Debt; and such provisions are made for the benefit of the holders of
Senior Debt; and such holders are made obligees hereunder and they or each of
them may enforce such provisions.

Section 11.02.    PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC.

                  In the event of (a) any insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding in connection therewith, relative to the Company or to its
creditors, as such, or to its assets, whether voluntary or involuntary or (b)
any liquidation, dissolution or other winding-up of the Company, whether
voluntary or involuntary and whether or not involving insolvency or bankruptcy,
or (c) any general assignment for the benefit of creditors or other marshalling
of assets or liabilities of the Company (except in connection with the merger or
consolidation of the Company or its liquidation or dissolution following the
transfer of substantially all of its assets, upon the terms and conditions
permitted as described under Section 5.01), then and in any such event:

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                  (1) the holders of Senior Debt of the Company shall be
         entitled to receive payment in full in cash or Cash Equivalents or, as
         acceptable to the holders of Senior Debt, in any other manner, of all
         amounts due on or in respect of all Senior Debt of the Company, or
         provision shall be made for such payment, before the Holders of the
         Notes are entitled to receive or retain any payment or distribution of
         any kind or character on account of principal of, premium, if any,
         interest on, or Special Interest, if any, on the Notes; and

                  (2) any payment or distribution of assets of the Company of
         any kind or character, whether in cash, Property or securities, by
         set-off or otherwise, to which the Holders or the Trustee would be
         entitled but for the provisions of this Article 11 shall be paid by the
         liquidating trustee or agent or other Person making such payment or
         distribution, whether a trustee in bankruptcy, a receiver or
         liquidating trustee or otherwise, directly to the holders of Senior
         Debt or their representative or representatives or to the trustee or
         trustees under any indenture under which any instruments evidencing any
         of such Senior Debt may have been issued, ratably according to the
         aggregate amounts remaining unpaid on account of the Senior Debt held
         or represented by each, to the extent necessary to make payment in full
         in cash, Cash Equivalents or, as acceptable to holders of Senior Debt,
         in any other manner, of all Senior Debt remaining unpaid, after giving
         effect to any concurrent payment or distribution, or provision
         therefor, to the holders of such Senior Debt; and

                  (3) in the event that, notwithstanding the foregoing
         provisions of this Section 11.02, the Trustee or the Holder of any Note
         shall have received any payment or distribution of assets of the
         Company of any kind or character, whether in cash, property or
         securities, including, without limitation, by way of set-off or
         otherwise, in respect of principal of, premium, if any, interest on,
         Special Interest, if any, on or any other Obligation owing in respect
         of, the Notes before all Senior Debt of the Company is paid in full or
         payment thereof provided for, then and in such event such payment or
         distribution shall be held by the recipient in trust for the benefit of
         holders of Senior Debt and shall be immediately paid over or delivered
         to the holders of Senior Debt or their representative or
         representatives to the extent necessary to make payment in full of all
         Senior Debt remaining unpaid, after giving effect to any concurrent
         payment or distribution, or provision therefor, to or for the holders
         of Senior Debt.

                  The consolidation of the Company with, or the merger of
Company with or into, another Person or the liquidation or dissolution of the
Company following the conveyance, transfer or lease of its properties and assets
substantially as an entirety to another Person upon the terms and conditions set
forth in Article 5 hereof shall not be deemed a dissolution, winding-up,
liquidation, reorganization, assignment for the benefit of creditors or
marshaling of assets and liabilities of the Company for the purposes of this
Article 11 if the Person formed by such consolidation or the surviving entity of
such merger or the person which acquires by conveyance, transfer or lease such

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properties and assets substantially as an entirety, as the case may be, shall,
as a part of such consolidation, merger, conveyance, transfer or lease, comply
with the conditions set forth in such Article 5 hereof.

Section 11.03.    SUSPENSION OF PAYMENT WHEN DESIGNATED SENIOR DEBT IN DEFAULT.

                  (a) Unless Section 11.02 hereof shall be applicable, after the
occurrence of a Payment Default, no payment or distribution of any assets or
securities of the Company or any Restricted Subsidiary of any kind or character
(including, without limitation, cash, property and any payment or distribution
which may be payable or deliverable by reason of the payment of any other Debt
of the Company being subordinated to the payment of the Notes by the Company)
may be made by or on behalf of the Company or any Restricted Subsidiary,
including, without limitation, by way of set-off or otherwise, for or on account
of principal of, premium, if any, interest on, or Special Interest, if any, on
the Notes, or for or on account of the purchase, redemption or other acquisition
of the Notes, and neither the Trustee nor any holder or owner of any Notes shall
take or receive from the Company or any Restricted Subsidiary, directly or
indirectly in any manner, payment in respect of all or any portion of Notes
following the delivery by the representative of the holders of Designated Senior
Debt (the "REPRESENTATIVE") to the Trustee of written notice of the occurrence
of a Payment Default, and in any such event, such prohibition shall continue
until (A) such Payment Default has been cured or waived or has ceased to exist
or (B) such Designated Senior Debt has been paid in full in cash; PROVIDED,
HOWEVER, that the Company may pay the Notes without regard to the foregoing if
the Company and the Trustee receive written notice approving such payment from
the Representative of such issue of Designated Senior Debt. At such time as the
prohibition set forth in the preceding sentence shall no longer be in effect,
subject to the provisions of the following paragraph (b), the Company shall
resume making any and all required payments in respect of the Notes, including
any missed payments.

                  (b) Unless Section 11.02 hereof shall be applicable, upon the
occurrence of a Non-Payment Event of Default on any Designated Senior Debt, no
payment or distribution of any assets of the Company of any kind shall be made
by the Company, including, without limitation, by way of set-off or otherwise,
on account of any principal of, premium, if any, or interest on the Notes or on
account of the purchase or redemption or other acquisition of Notes for a period
("PAYMENT BLOCKAGE PERIOD") commencing on the date of receipt by the Trustee of
written notice from the Representative of such Non-Payment Event of Default
unless and until (subject to any blockage of payments that may then be in effect
under the preceding paragraph (a)) the earliest of (w) more than 179 days shall
have elapsed since the date of receipt of such written notice by the Trustee,
(x) such Non-Payment Event of Default shall have been cured or waived or is
otherwise no longer continuing, (y) such Designated Senior Debt shall have been
paid in full in cash or Cash Equivalents or (z) such Payment Blockage Period
shall have been terminated by written notice to the Company or the Trustee from
the Representative initiating such Payment Blockage Period, or the holders of at
least a majority in principal amount of such issue of Designated Senior Debt,
after which, in the case of clause (w), (x), (y) or (z), the Company shall
resume making any and all required payments in respect of the Notes, including
any missed payments. Notwithstanding any other provisions of this Indenture, no
Non-Payment Event of Default with respect to Designated Senior Debt which
existed or was continuing on the date of the commencement of any Payment

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Blockage Period initiated by the Representative shall be, or be made, the basis
for the commencement of a second Payment Blockage Period initiated by the
Representative, whether or not within the Initial Blockage Period, unless such
Non-Payment Event of Default shall have been cured or waived for a period of not
less than 90 consecutive days. In no event shall a Payment Blockage Period
extend beyond 179 days from the date of the receipt by the Trustee of the notice
referred to in this Section 11.03(b) (the "INITIAL BLOCKAGE PERIOD"). Any number
of additional Payment Blockage Periods may be commenced during the Initial
Blockage Period; PROVIDED, HOWEVER, that no such additional Payment Blockage
Period shall extend beyond the Initial Blockage Period. After the expiration of
the Initial Blockage Period, no Payment Blockage Period may be commenced under
this Section 11.03(b) and no Guarantee Payment Blockage Period may be commenced
under Section 10.08(b) hereof until at least 180 consecutive days have elapsed
from the last day of the Initial Blockage Period.

                  (c) In the event that, notwithstanding the foregoing, the
Trustee or the Holder of any Note shall have received any payment prohibited by
the foregoing provisions of this Section 11.03, then and in such event such
payment shall be paid over and delivered forthwith to the Representative
initiating the Payment Blockage Period, in trust for distribution to the holders
of Senior Debt or, if no amounts are then due in respect of Senior Debt,
promptly returned to the Company, or otherwise as a court of competent
Jurisdiction shall direct.

Section 11.04.    TRUSTEE'S RELATION TO SENIOR DEBT.

                  With respect to the holders of Senior Debt, the Trustee is to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article 11, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and the Trustee shall not be liable
to any holder of Senior Debt if it shall mistakenly pay over or deliver to
Holders, the Company or any other Person moneys or assets to which any holder of
Senior Debt shall be entitled by virtue of this Article 11 or otherwise.

Section 11.05.    SUBROGATION TO RIGHTS OF HOLDERS OF SENIOR DEBT.

                  Upon the payment in full of all Senior Debt, the Holders of
the Notes shall be subrogated to the rights of the holders of such Senior Debt
to receive payments and distributions of cash, Property and securities
applicable to Senior Debt until the principal of, premium, if any and interest
on the Notes shall be paid in full. For purposes of such subrogation, no
payments or distributions to the holders of Senior Debt of any cash, Property or
securities to which the Holders of the Notes or the Trustee would be entitled
except for the provisions of this Article 11, and no payments over pursuant to
the provisions of this Article 11 to the holders of Senior Debt by Holders of
the Notes or the Trustee, shall, as among the Company, its creditors other than

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holders of Senior Debt and the Holders of the Notes, be deemed to be a payment
or distribution by the Company to or on account of Senior Debt.

                  If any payment or distribution to which the Holders would
otherwise have been entitled but for the provisions of this Article 11 shall
have been applied, pursuant to the provisions of this Article 11, to the payment
of all amounts payable under the Senior Debt of the Company, then and in such
case the Holders shall be entitled to receive from the holders of such Senior
Debt at the time outstanding any payments or distributions received by such
holders of such Senior Debt in excess of the amount sufficient to pay all
amounts payable under or in respect of such Senior Debt in full in cash or Cash
Equivalents.

Section 11.06.    PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS.

                  The provisions of this Article 11 are and are intended solely
for the purpose of defining the relative rights of the Holders of the Notes on
the one hand and the holders of Senior Debt on the other hand. Nothing contained
in this Article 11 or elsewhere in this Indenture or in the Notes is intended to
or shall (a) impair, as among the Company, its creditors other than holders of
Senior Debt and the Holders of the Notes, the obligation of the Company, which
is absolute and unconditional, to pay to the Holders of the Notes the principal
of, premium, if any, and interest on the Notes as and when the same shall become
due and payable in accordance with their terms; or (b) affect the relative
rights against the Company of the Holders of the Notes and creditors of the
Company other than the holders of Senior Debt; or (c) prevent the Trustee or the
Holder of any Note from exercising all remedies otherwise permitted by
applicable law upon a Default or an Event of Default under this Indenture,
subject to the rights, if any, under this Article 11 of the holders of Senior
Debt (1) in any case, proceeding, dissolution, liquidation or other winding-up,
assignment for the benefit of creditors or other marshaling of assets and
liabilities of the Company referred to in Section 11.02 hereof, to receive,
pursuant to and in accordance with such Section, cash, Property and securities
otherwise payable or deliverable to the Trustee or such Holder, or (2) under the
conditions specified in Section 11.03, to prevent any payment prohibited by such
Section or enforce their rights pursuant to Section 11.03(c) hereof.

                  The failure to make a payment on account of principal of,
premium, if any, or interest on the Notes by reason of any provision of this
Article 11 shall not be construed as preventing the occurrence of a Default or
an Event of Default hereunder.

Section 11.07.    TRUSTEE TO EFFECTUATE SUBORDINATION.

                  Each Holder of a Note by his acceptance thereof authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes,
including, in the event of any dissolution, winding-up, liquidation or
reorganization of the Company whether in bankruptcy, insolvency, receivership
proceedings, or otherwise, the timely filing of a claim for the unpaid balance
of the indebtedness of the Company owing to such Holder in the form required in

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<PAGE>   117

such proceedings and the causing of such a claim to be approved. If the Trustee
does not file such a claim prior to 30 days before the expiration of the time to
file such a claim, the holders of Senior Debt, or any Representative, may file
such a claim on behalf of Holders of the Notes.

Section 11.08.    NO WAIVER OF SUBORDINATION PROVISIONS.

                  (a) No right of any present or future holder of any Senior
Debt to enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
non-compliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.

                  (b) Without limiting the generality of subsection (a) of this
Section 11.08, the holders of Senior Debt may, at any time and from time to
time, without the consent of or notice to the Trustee or the Holders of the
Notes, without incurring responsibility to the Holders of the Notes and without
impairing or releasing the subordination provided in this Article 11 or the
obligations hereunder of the Holders of the Notes to the holders of Senior Debt,
do any one or more of the following: (1) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Debt or any
instrument evidencing the same or any agreement under which Senior Debt is
outstanding; (2) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing Senior Debt; (3) release any Person
liable in any manner for the collection or payment of Senior Debt; and (4)
exercise or refrain from exercising any rights against the Company and any other
Person; PROVIDED, HOWEVER, that in no event shall any such actions limit the
right of the Holders of the Notes to take any action to accelerate the maturity
of the Notes pursuant to Article 6 hereof or to pursue any rights or remedies
hereunder or under applicable laws if the taking of such action does not
otherwise violate the terms of this Indenture.

Section 11.09.    NOTICE TO TRUSTEE.

                  (a) The Company shall give prompt written notice to the
Trustee of any fact known to the Company which would prohibit the making of any
payment to or by the Trustee at its Corporate Trust Office in respect of the
Notes. Notwithstanding the provisions of this Article 11 or any other provision
of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts which would prohibit the making of any payment to or by
the Trustee in respect of the Notes, unless and until the Trustee shall have
received written notice thereof from the Company or a holder of Senior Debt or
from any trustee, fiduciary or agent therefor; and, prior to the receipt of any
such written notice, the Trustee, subject to the provisions of this Section
11.09, shall be entitled in all respects to assume that no such facts exist;
PROVIDED, HOWEVER, that if the Trustee shall not have received the notice
provided for in this Section 11.09 at least five Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
under this Indenture (including, without limitation, the payment of the
principal of, premium, if any, or interest on any Note), then, anything herein

                                      109
<PAGE>   118

contained to the contrary notwithstanding but without limiting the rights and
remedies of the holders of Senior Debt or any trustee, fiduciary or agent
therefor, the Trustee shall have full power and authority to receive such money
and to apply the same to the purpose for which such money was received and shall
not be affected by any notice to the contrary which may be received by it within
five Business Days prior to such date; nor shall the Trustee be charged with
knowledge of the curing of any such default or the elimination of the act or
condition preventing any such payment unless and until the Trustee shall have
received an Officers' Certificate to such effect.

                  (b) Subject to the provisions of Section 7.01 hereof, the
Trustee shall be entitled to rely on the delivery to it of a written notice to
the Trustee and the Company by a Person representing itself to be a holder of
Senior Debt (or a trustee, fiduciary or agent therefor) to establish that such
notice has been given by a holder of Senior Debt (or a trustee, fiduciary or
agent therefor); PROVIDED, HOWEVER, that failure to give such notice to the
Company shall not affect in any way the ability of the Trustee to rely on such
notice. In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of
Senior Debt to participate in any payment or distribution pursuant to this
Article 11, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article 11, and if such evidence is not furnished, the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment.

Section 11.10.    RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING
                  AGENT.

                  Upon any payment or distribution of assets of the Company
referred to in this Article 11, the Trustee, subject to the provisions of
Section 7.01 hereof, and the Holders shall be entitled to rely upon any order or
decree entered by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, liquidation, reorganization, dissolution, winding-up
or similar case or proceeding is pending, or a certificate of the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of
Senior Debt and other Debt of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article 11; provided that the foregoing shall apply
only if such court has been fully apprised of the provisions of this Article 11.

Section 11.11.    RIGHTS OF TRUSTEE AS A HOLDER OF SENIOR DEBT; PRESERVATION
                  OF TRUSTEE'S RIGHTS.

                  The Trustee in its individual capacity shall be entitled to
all the rights set forth in this Article 11 with respect to any Senior Debt
which may at any time be held by it, to the same extent as any other holder of

                                      110
<PAGE>   119

Senior Debt, and nothing in this Indenture shall deprive the Trustee of any of
its rights as such holder. Nothing in this Article 11 shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 7.07 hereof.

Section 11.12.    ARTICLE APPLICABLE TO PAYING AGENTS.

                  In case at any time any Paying Agent other than the Trustee
shall have been appointed by the Company and be then acting hereunder, the term
"TRUSTEE" as used in this Article 11 shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying Agent
within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article 11 in addition to or in place of the Trustee.

Section 11.13.    NO SUSPENSION OF REMEDIES.

                  Nothing contained in this Article 11 shall limit the right of
the Trustee or the Holders of Notes to take any action to accelerate the
maturity of the Notes pursuant to Article 6 or to pursue any rights or remedies
hereunder or under applicable law, subject to the rights, if any, under this
Article 11 of the holders, from time to time, of Senior Debt.

                                   ARTICLE 12

                                  MISCELLANEOUS

Section 12.01.    TRUST INDENTURE ACT CONTROLS.

                  If any provision of this Indenture limits, qualifies or
conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

Section 12.02.    NOTICES.

                  Any notice or communication shall be given in writing and
delivered in person, sent by facsimile, delivered by commercial courier service
or mailed by first-class mail, postage prepaid, addressed as follows:

                  If to the Company or any Subsidiary Guarantor:

                           Paxson Communications Corporation
                           601 Clearwater Park Road
                           West Palm Beach, Florida  33401
                           Attention:       Chief Financial Officer
                                            General Counsel

                                      111
<PAGE>   120

                  Copy to:

                           Holland & Knight LLP
                           625 N. Flagler Drive
                           Suite 700
                           West Palm Beach, Florida  33401
                           Attention:       David L. Perry, Esq.

                  If to the Trustee:

                           The Bank of New York
                           101 Barclays Street, 21W
                           New York, New York 10286

                           Attention:       Corporate Trust Administration
                           Facsimile:       (212) 815-5915

                  Such notices or communications shall be effective when
received and shall be sufficiently given if so given within the time prescribed
in this Indenture.

                  The Company, the Subsidiary Guarantors or the Trustee by
written notice to the others may designate additional or different addresses for
subsequent notices or communications.

                  Any notice or communication mailed to a Noteholder shall be
mailed to him by first-class mail, postage prepaid, at his address shown on the
register kept by the Registrar.

                  Failure to mail a notice or communication to a Noteholder or
any defect in it shall not affect its sufficiency with respect to other
Noteholders. If a notice or communication to a Noteholder is mailed in the
manner provided above, it shall be deemed duly given, whether or not the
addressee receives it.

                  In case by reason of the suspension of regular mail service,
or by reason of any other cause, it shall be impossible to mail any notice as
required by this Indenture, then such method of notification as shall be made
with the approval of the Trustee shall constitute a sufficient mailing of such
notice.

Section 12.03.    COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

                  Noteholders may communicate pursuant to TIA ss. 312(b) with
other Noteholders with respect to their rights under this Indenture or the
Notes. The Company, the Subsidiary Guarantors, the Trustee, the Registrar and
anyone else shall have the protection of TIA ss. 312(c).

                                      112
<PAGE>   121

Section 12.04.    CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

                  Upon any request or application by the Company or any
Subsidiary Guarantor to the Trustee to take any action under this Indenture, the
Company shall furnish to the Trustee:

                  (1) an Officers' Certificate (which shall include the
         statements set forth in Section 12.05 below) stating that, in the
         opinion of the signers, all conditions precedent, if any, provided for
         in this Indenture relating to the proposed action have been complied
         with; and

                  (2) an Opinion of Counsel (which shall include the statements
         set forth in Section 12.05 below) stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

Section 12.05.    STATEMENTS REQUIRED IN CERTIFICATE AND OPINION.

                  Each certificate and opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                  (1) a statement that the Person making such certificate or
         opinion has read such covenant or condition;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of such Person, it or he
         has made such examination or investigation as is necessary to enable it
         or him to express an informed opinion as to whether or not such
         covenant or condition has been complied with; and

                  (4) a statement as to whether or not, in the opinion of such
         Person, such covenant or condition has been complied with.

Section 12.06.    WHEN TREASURY NOTES DISREGARDED.

                  In determining whether the Holders of the required aggregate
principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Company, any Subsidiary Guarantor or any other obligor on the
Notes or by any Affiliate of any of them shall be disregarded, except that for
the purposes of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Notes which a Responsible Officer of
the Trustee actually knows are so owned shall be so disregarded. Notes so owned
which have been pledged in good faith shall not be disregarded if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to the Notes and that the pledgee is not the Company, a Subsidiary
Guarantor or any other obligor upon the Notes or any Affiliate of any of them.

                                      113
<PAGE>   122

Section 12.07.    RULES BY TRUSTEE AND AGENTS.

                  The Trustee may make reasonable rules for action by or
meetings of Noteholders. The Registrar and Paying Agent may make reasonable
rules for their functions.

Section 12.08.    BUSINESS DAYS; LEGAL HOLIDAYS.

                  A "BUSINESS DAY" is a day that is not a Legal Holiday. A
"LEGAL HOLIDAY" is a Saturday, a Sunday, a federally-recognized holiday or a day
on which banking institutions are not required to be open in the State of New
York. If a payment date is a Legal Holiday at a place of payment, payment may be
made at that place on the next succeeding day that is not a Legal Holiday, and
no interest shall accrue for the intervening period.

Section 12.09.    GOVERNING LAW.

                  THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO AGREES
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE
SECURITIES.

Section 12.10.    NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

                  This Indenture may not be used to interpret another indenture,
loan, security or debt agreement of the Company or any subsidiary thereof. No
such indenture, loan, security or debt agreement may be used to interpret this
Indenture.

Section 12.11.    NO RECOURSE AGAINST OTHERS.

                  No recourse for the payment of the principal of or premium, if
any, or interest on any of the Notes, or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company or any Subsidiary Guarantor in this
Indenture or in any supplemental indenture, or in any of the Notes, or because
of the creation of any Debt represented thereby, shall be had against any
stockholder, officer, director or employee, as such, past, present or future, of
the Company or of any successor corporation or against the Property or assets of
any such stockholder, officer, employee or director, either directly or through
the Company or any Subsidiary Guarantor, or any successor corporation thereof,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the Notes are solely obligations of the
Company and the Subsidiary Guarantors, and that no such personal liability
whatever shall attach to, or is or shall be incurred by, any stockholder,
officer, employee or director of the Company or any Subsidiary Guarantor, or any
successor corporation thereof, because of the creation of the indebtedness

                                      114
<PAGE>   123

hereby authorized, or under or by reason of the obligations, covenants or
agreements contained in this Indenture or the Notes or implied therefrom, and
that any and all such personal liability of, and any and all claims against
every stockholder, officer, employee and director, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issuance of the Notes. It is understood that this
limitation on recourse is made expressly for the benefit of any such
shareholder, employee, officer or director and may be enforced by any of them.

Section 12.12.    SUCCESSORS.

                  All agreements of the Company and the Subsidiary Guarantors in
this Indenture and the Notes shall bind their respective successors. All
agreements of the Trustee, any additional trustee and any Paying Agents in this
Indenture shall bind its successor.

Section 12.13.    MULTIPLE COUNTERPARTS.

                  The parties may sign multiple counterparts of this Indenture.
Each signed counterpart shall be deemed an original, but all of them together
represent one and the same agreement.

Section 12.14.    TABLE OF CONTENTS, HEADINGS, ETC.

                  The table of contents, cross-reference sheet and headings of
the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

Section 12.15.    SEPARABILITY.

                  Each provision of this Indenture shall be considered separable
and if for any reason any provision which is not essential to the effectuation
of the basic purpose of this Indenture or the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

                                      115
<PAGE>   124

                  IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed, and the Company's corporate seal to be hereunto affixed and
attested, all as of the date and year first written above.

                           PAXSON COMMUNICATIONS CORPORATION
                           (a Delaware Corporation)

                           By:
                              -------------------------------------------------
                           Name:   Anthony L. Morrison
                           Title:  Executive Vice President and Chief Legal
                                   Officer

                           SUBSIDIARY GUARANTORS:

                           BUD HITS, INC.
                           (a Florida corporation)

                           BUD SONGS, INC.
                           (a Florida corporation)

                           CAP COMMUNICATIONS LICENSE OF NEW LONDON, INC.
                           (a Florida corporation)

                           CAP COMMUNICATIONS OF NEW LONDON, INC.
                           (a Florida corporation)

                           CAP COMMUNICATIONS, INC.
                           (a Florida corporation)

                           CHANNEL 66 OF TAMPA, INC.
                           (a Florida corporation)

                           CLEARLAKE PRODUCTIONS, INC.
                           (a Florida corporation)

                           COCOLA MEDIA CORPORATION OF FLORIDA
                           (a Delaware corporation)

                           COCOLA MEDIA CORPORATION OF SAN FRANCISCO, INC.
                           (a California corporation)

                           DP MEDIA, INC.
                           (a Florida corporation)

                           DP MEDIA LICENSE OF BATTLE CREEK, INC.
                           (a Florida corporation)

                           DP MEDIA LICENSE OF BOSTON, INC.
                           (a Florida corporation)

                                      116
<PAGE>   125

                           DP MEDIA LICENSE OF MARTINSBURG, INC.
                           (a Florida corporation)

                           DP MEDIA LICENSE OF MILWAUKEE, INC.
                           (a Florida corporation)

                           DP MEDIA LICENSE OF RALEIGH DURHAM, INC.
                           (a Florida corporation)

                           DP MEDIA OF BATTLE CREEK, INC.
                           (a Florida corporation)

                           DP MEDIA OF BOSTON, INC.
                           (a Florida corporation)

                           DP MEDIA OF MARTINSBURG, INC.
                           (a Florida corporation)

                           DP MEDIA OF MILWAUKEE, INC.
                           (a Florida corporation)

                           DP MEDIA OF RALEIGH DURHAM, INC.
                           (a Florida corporation)

                           DP MEDIA OF ST. LOUIS, INC.
                           (a Florida corporation)

                           FLAGLER PRODUCTIONS, INC
                           (a Florida corporation)

                           HISPANIC BROADCASTING, INC.
                           (a Florida corporation)

                           IRON MOUNTAIN PRODUCTIONS, INC.
                           (a Florida corporation)

                           OCEAN STATE TELEVISION, LLC
                           (a Delaware limited liability company)

                           PAX HITS PUBLISHING, INC.
                           (a Florida corporation)

                           PAX INTERNET, INC.
                           (a Florida corporation)

                           PAX NET TELEVISION PRODUCTIONS, INC.
                           (a Florida corporation)

                           PAX NET, INC.
                           (a Delaware corporation)

                                      117
<PAGE>   126

                           PAXSON AKRON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON ALBANY LICENSE, INC.
                           (a Florida corporation)

                           PAXSON ALBUQUERQUE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON ATLANTA LICENSE, INC.
                           (a Florida corporation)

                           PAXSON BIRMINGHAM LICENSE, INC.
                           (a Florida corporation)

                           PAXSON BOSTON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON BOSTON-68 LICENSE, INC.
                           (a Florida corporation)

                           PAXSON BUFFALO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON CEDAR RAPIDS LICENSE, INC.
                           (a Florida corporation)

                           PAXSON CHARLESTON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON CHICAGO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS LICENSE COMPANY, LLC
                           (a Delaware limited liability company)

                           PAXSON COMMUNICATIONS LPTV, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS MANAGEMENT COMPANY, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF AKRON-23, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF ALBANY-55, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF ALBUQUERQUE-14, INC.
                           (a Florida corporation)

                                      118
<PAGE>   127

                           PAXSON COMMUNICATIONS OF ATLANTA-14, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF BIRMINGHAM-44, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF BOSTON-46, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF BOSTON-60, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF BOSTON-68, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF BUFFALO-51, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF CEDAR RAPIDS-48, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF CHARLESTON-29, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF CHICAGO-38, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF DALLAS-68, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF DAVENPORT-67, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF DENVER-59, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF DES MOINES-39, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF DETROIT-31, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF FAYETTEVILLE-62, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF FRESNO-61, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF GREENSBORO-16, INC.
                           (a Florida corporation)

                                      119
<PAGE>   128

                           PAXSON COMMUNICATIONS OF GREENVILLE-38, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF HONOLULU-66, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF HOUSTON-49, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF JACKSONVILLE-21, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF JACKSONVILLE-35, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF KANSAS CITY-50, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF KNOXVILLE-54, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF LEXINGTON-67, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF LOS ANGELES-30, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF LOUISVILLE-21, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF MEMPHIS-50, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF MIAMI-35, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF MINNEAPOLIS-41, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF MOBILE-61, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF NASHVILLE-28, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF NEW ORLEANS-49, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF NEW YORK-31, INC.
                           (a Florida corporation)

                                      120
<PAGE>   129

                           PAXSON COMMUNICATIONS OF NORFOLK-49, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF OKLAHOMA CITY-62, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF ORLANDO-56, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PHILADELPHIA-61, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PHOENIX-13, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PHOENIX-51, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PITTSBURGH-40, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PORTLAND-22, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PORTLAND-23, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF PROVIDENCE-69, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF ROANOKE-38, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SACRAMENTO-29, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SALT LAKE CITY-30, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SAN ANTONIO-26, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SAN JOSE-65, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SAN JUAN, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SCRANTON-64, INC.
                           (a Florida corporation)

                                      121
<PAGE>   130

                           PAXSON COMMUNICATIONS OF SEATTLE-33, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SHREVEPORT-21, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SPOKANE-34, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF ST. CROIX-15, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF SYRACUSE-56, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF TAMPA-66, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF TUCSON-46, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF TULSA-44, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF WASHINGTON-66, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF WAUSAU-46, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS OF WEST PALM BEACH-67, INC.
                           (a Florida corporation)

                           PAXSON COMMUNICATIONS TELEVISION, INC.
                           (a Florida corporation)

                           PAXSON DALLAS LICENSE, INC.
                           (a Florida corporation)

                           PAXSON DAVENPORT LICENSE, INC.
                           (a Florida corporation)

                           PAXSON DENVER LICENSE, INC.
                           (a Florida corporation)

                           PAXSON DES MOINES LICENSE, INC.
                           (a Florida corporation)

                           PAXSON DETROIT LICENSE, INC.
                           (a Florida corporation)

                                      122
<PAGE>   131

                           PAXSON DEVELOPMENT, INC.
                           (a Florida corporation)

                           PAXSON FAYETTEVILLE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON FRESNO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON GREENSBORO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON GREENVILLE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON HAWAII LICENSE, INC.
                           (a Florida corporation)

                           PAXSON HOUSTON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON JACKSONVILLE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON JAX LICENSE, INC.
                           (a Florida corporation)

                           PAXSON KANSAS CITY LICENSE, INC.
                           (a Florida corporation)

                           PAXSON KNOXVILLE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON LEXINGTON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON LOS ANGELES LICENSE, INC.
                           (a Florida corporation)

                           PAXSON MERCHANDISING & LICENSING, INC.
                           (a Florida corporation)

                           PAXSON MIAMI-35 LICENSE, INC.
                           (a Florida corporation)

                           PAXSON MINNEAPOLIS LICENSE, INC.
                           (a Florida corporation)

                           PAXSON MOBILE LICENSE, INC.
                           (a Florida corporation)

                                      123
<PAGE>   132

                           PAXSON NEW YORK LICENSE, INC.
                           (a Florida corporation)

                           PAXSON NORFOLK LICENSE, INC.
                           (a Florida corporation)

                           PAXSON OKLAHOMA CITY LICENSE, INC.
                           (a Florida corporation)

                           PAXSON ORLANDO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON PHILADELPHIA LICENSE, INC.
                           (a Florida corporation)

                           PAXSON PHOENIX LICENSE, INC.
                           (a Florida corporation)

                           PAXSON PORTLAND LICENSE, INC.
                           (a Florida corporation)

                           PAXSON PRODUCTIONS, INC.
                           (a Florida corporation)

                           PAXSON ROANOKE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SACRAMENTO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SALEM LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SALT LAKE CITY LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SAN ANTONIO LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SAN JOSE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SCRANTON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SEATTLE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SHREVEPORT LICENSE, INC.
                           (a Florida corporation)

                                      124
<PAGE>   133

                           PAXSON SPOKANE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SPORTS OF MIAMI, INC.
                           (a Florida corporation)

                           PAXSON ST. CROIX LICENSE, INC.
                           (a Florida corporation)

                           PAXSON SYRACUSE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON TAMPA-66 LICENSE, INC.
                           (a Florida corporation)

                           PAXSON TELEVISION PRODUCTIONS, INC.
                           (a Florida corporation)

                           PAXSON TELEVISION, INC.
                           (a Florida corporation)

                           PAXSON TENNESSEE LICENSE, INC.
                           (a Florida corporation)

                           PAXSON TULSA LICENSE, INC.
                           (a Florida corporation)

                           PAXSON WASHINGTON LICENSE, INC.
                           (a Florida corporation)

                           PAXSON WAUSAU LICENSE, INC.
                           (a Florida corporation)

                           PCC DIRECT, INC.
                           (a Florida corporation)

                           RDP COMMUNICATIONS LICENSE OF INDIANAPOLIS, INC.
                           (a Florida corporation)

                           RDP COMMUNICATIONS OF INDIANAPOLIS, INC.
                           (a Florida corporation)

                           RDP COMMUNICATIONS, INC.
                           (a Florida corporation)

                           S&E NETWORK, INC.
                           (a Puerto Rican corporation)

                                      125
<PAGE>   134

                           TRAVEL CHANNEL ACQUISITION CORPORATION
                           (a Florida corporation)

                           By:
                              -----------------------------------------
                                   Name:    Anthony L. Morrison
                                   Title:   Vice President and Assistant
                                            Secretary of each of such
                                            Subsidiary Guarantors

                           AMERICA 51, L.P.
                           (a Delaware limited partnership)

                           By:     Paxson Communications of Phoenix-51, Inc.,
                                   its General Partner and Limited Partner
                           By:     Paxson Communications Television, Inc.,
                                   its Limited Partner

                           By:
                              -----------------------------------------
                                   Name:    Anthony L. Morrison
                                   Title:   Vice President and Assistant
                                            Secretary of such General and
                                            Limited Partners

                           THE BANK OF NEW YORK as Trustee

                           By:
                              -----------------------------------------
                                   Name:
                                   Title:

                                      126
<PAGE>   135

                                                                       EXHIBIT A

                                 [Face of Note]
 -------------------------------------------------------------------------------

                                                        CUSIP
                                                              ---------------

                   10 3/4% Senior Subordinated Notes due 2008

No. ___                                                        $____________

                       PAXSON COMMUNICATIONS CORPORATION,
                     a Delaware corporation (the "Company")

promises to pay to ________________________________________________or registered
assigns, the principal sum of ________________________Dollars on July 15, 2008.

Interest Payment Dates: January 15 and July 15 of each year, beginning on
January 15, 2002.

Record Dates: January 1 and July 1 of each year.

           IN WITNESS WHEREOF, the Company has caused this Note to be signed
manually or by facsimile by its duly authorized officers.

                                         PAXSON COMMUNICATIONS CORPORATION

                                         By:
                                             ----------------------------------
                                             Name:
                                             Title:

                                         By:
                                             ----------------------------------
                                             Name:
                                             Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

Dated:  July 12, 2001

THE BANK OF NEW YORK,
  as Trustee

By:
   --------------------------------------
Authorized Signatory

                                      A-1
<PAGE>   136

                                [Reverse of Note]
               10 3/4% Senior Subordinated Notes due July 15, 2008

[INSERT THE GLOBAL NOTE LEGEND, IF APPLICABLE PURSUANT TO THE PROVISIONS OF THE
INDENTURE]

[INSERT THE RESTRICTED NOTES LEGEND, IF APPLICABLE PURSUANT TO THE PROVISIONS OF
THE INDENTURE]

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

                  1. INTEREST.

                           (a) Paxson Communications Corporation, a Delaware
corporation (the "Company"), promises to pay interest on the principal amount of
this Note at the rate of 10 3/4% per annum from July 12, 2001 until maturity.

                           (b) If (a) on or prior to the 60th day following the
Issue Date, neither the Exchange Offer Registration Statement nor the Shelf
Registration Statement has been filed with the SEC, (b) on or prior to the 120th
day following the Issue Date, neither the Exchange Offer Registration Statement
nor the Shelf Registration Statement has been declared effective, (c) on or
prior to the 180th day following the Issue Date, neither the Registered Exchange
Offer has been consummated nor the Shelf Registration Statement has been
declared effective, or (d) after either the Exchange Offer Registration
Statement or the Shelf Registration Statement has been declared effective, such
Registration Statement thereafter ceases to be effective or usable in connection
with resales of Notes or Exchange Notes in accordance with and during the
periods specified in the Registration Rights Agreement (each such event referred
to in clauses (a) through (d), a "Registration Default"), the Company shall pay
interest ("Special Interest") accrued on the principal amount of the Notes and
the Exchange Notes (in addition to the stated interest on the Notes and the
Exchange Notes) from and including the date on which any such Registration
Default shall occur to but excluding the date on which all Registration Defaults
have been cured. Special Interest will accrue at a rate of 0.25% per annum
during the 90-day period immediately following the occurrence of such
Registration Default and shall increase by 0.25% per annum at the end of each
subsequent 90-day period, but in no event shall such rate exceed 1.00% per
annum.

                           The Company will pay interest and Special Interest
semi-annually in arrears on January 15 and July 15 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"). Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
date of issuance; PROVIDED that if there is no existing Default in the payment
of interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; PROVIDED, FURTHER, that
the first Interest Payment Date shall be January 15, 2002. The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on

                                      A-2
<PAGE>   137

demand at the rate borne by the Notes; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Special Interest (without regard to any applicable
grace periods) from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve
30-day months.

                  2. METHOD OF PAYMENT. The Company will pay interest on the
Notes (except defaulted interest) and Special Interest to the Persons who are
registered Holders of Notes at the close of business on the January 1 or July 1
next preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided
in Section 2.11 of the Indenture with respect to defaulted interest. The Notes
will be payable as to principal, premium and Special Interest, if any, and
interest at the office or agency of the Company maintained for such purpose
within or without The City and State of New York, or, at the option of the
Company, payment of interest and Special Interest may be made by check mailed to
the Holders at their addresses set forth in the register of Holders, provided
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest, premium and Special Interest on, all
Global Notes. Such payment shall be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts.

                  3. PAYING AGENT AND REGISTRAR. Initially, The Bank of New
York, the Trustee under the Indenture, will act as Paying Agent and Registrar.
The Company may change any Paying Agent or Registrar without notice to any
Holder. Neither the Company nor any of its Subsidiaries or Affiliates may act as
Paying Agent but may act as registrar or co-registrar.

                  4. INDENTURE AND GUARANTEES; RESTRICTIVE COVENANTS. The
Company issued the Notes under an Indenture dated as of July 12, 2001 (the
"Indenture"), among the Company, the Subsidiary Guarantors and the Trustee. The
terms of this Note include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code
ss.ss. 77aaa-77bbbb) as in effect on the date of the Indenture. This Note is
subject to all such terms, and the Holder of this Note is referred to the
Indenture and said Trust Indenture Act for a statement of them. All capitalized
terms in this Note, unless otherwise defined, have the meanings assigned to them
by the Indenture.

                  The Notes are general unsecured obligations of the Company
limited to $200,000,000 aggregate principal amount. The Indenture imposes
certain limitations on, among other things, indebtedness, issuance and sale of
capital stock of Restricted Subsidiaries, restricted payments, liens, asset
sales and spectrum sales, transactions with affiliates, layered debt, and
restrictions or distributions from Restricted Subsidiaries.

                  5. SUBORDINATION. The Debt evidenced by the Notes is, to the
extent and in the manner provided in the Indenture, subordinated and subject in
right of payment to the prior payment in full of all Senior Debt as defined in
the Indenture and this Note is issued subject to such provisions. Each Holder of
this Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee, on behalf of such Holder, to
take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee
attorney-in-fact of such Holder for such purpose; provided, however, that the
Debt evidenced by this Note shall cease to be so subordinated and subject in
right of payment upon any defeasance of this Note referred to in Paragraph 17
below.

                                      A-3
<PAGE>   138

                  6. OPTIONAL REDEMPTION.

                  (a) Except as set forth in Sections 6(b) and (c) below, the
Notes will not be redeemable at the option of the Company before July 15, 2005.
Starting on that date, the Company may redeem all or any portion of the Notes,
at once or over time, after giving the required notice under the Indenture. The
Notes may be redeemed at the redemption prices set forth below, plus accrued and
unpaid interest and Special Interest, if any, to the redemption date (subject to
the right of holders of record on the relevant record date to receive interest
due on the relevant interest payment date). The following prices are for Notes
redeemed during the 12-month period commencing on July 15 of the years set forth
below, and are expressed as percentages of principal amount:

REDEMPTION YEAR                                               PRICE
---------------                                               -----
2005................................................         105.375%
2006................................................         102.688%
2007 and thereafter.................................         100.000%

                  (b) At any time prior to July 15, 2005, the Company may redeem
all or any portion of the Notes, at once or over time, after giving the required
notice under the Indenture at a redemption price equal to the greater of:

                           (i) 100% of the principal amount of the Notes to be
         redeemed, and

                           (ii) the sum of the present values of the remaining
         scheduled payments of principal and interest thereon discounted to the
         date of redemption on a semiannual basis (assuming a 360-day year
         consisting of twelve 30-day months) at the Treasury Rate plus 50 basis
         points,

plus, in either case, accrued and unpaid interest and Special Interest, if any,
to the redemption date (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment
date).

                  (c) At any time and from time to time, prior to July 15, 2004,
the Company may redeem up to a maximum of 35% of the original aggregate
principal amount of the Notes with the proceeds of one or more Public Equity
Offerings, at a redemption price equal to 110.75% of the principal amount
thereof, plus accrued and unpaid interest and Special Interest, if any, to the
redemption date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date);
provided, however, that after giving effect to any such redemption, at least 65%
of the original aggregate principal amount of the Notes remains outstanding. Any
such redemption shall be made within 90 days of such Public Equity Offering upon
not fewer than 30 nor more than 60 days' prior notice.

                  (d) On and after any redemption date, if money sufficient to
pay the redemption price of and accrued interest on Notes called for redemption
shall have been made available in accordance with the terms of the Indenture,
the Notes called for redemption will cease to accrue interest and the only right

                                      A-4
<PAGE>   139

of the Holders of such Notes will be to receive payment of the redemption price
of and, subject to the terms of the Indenture, accrued and unpaid interest on
such Notes to the redemption date.

                  7. NO MANDATORY REDEMPTION.

                  Except as set forth in paragraph 8 below, the Company shall
not be required to make mandatory redemption payments with respect to the Notes.

                  8. OFFERS TO PURCHASE. The Indenture requires that certain
proceeds from Asset Sales and Spectrum Sales be used, subject to further
limitations contained therein, to make an offer to purchase certain amounts of
Notes in accordance with the procedures set forth in the Indenture. The Company
is also required to make an offer to purchase Notes upon the occurrence of a
Change of Control in accordance with procedures set forth in the Indenture.

                  9. DENOMINATIONS; TRANSFER; EXCHANGE. The Notes are in
registered form, without coupons, in denominations of $1,000 and integral
multiples of $1,000. A Holder shall register the transfer or exchange of Notes
in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay certain transfer taxes or similar governmental charges in connection
therewith as permitted by the Indenture. The Registrar need not register the
transfer or exchange of any Notes during a period beginning 15 days before the
mailing of a redemption notice for any Notes or portions thereof selected for
redemption.

                  10. PERSONS DEEMED OWNERS. The registered Holder of this Note
shall be treated as the owner of it for all purposes.

                  11. UNCLAIMED MONEY. If money for the payment of principal,
premium or interest on any Note remains unclaimed for two years, the Trustee and
the Paying Agent will pay the money back to the Company at its request. After
that, Holders entitled to money must look to the Company for payment as general
creditors unless an "abandoned property" law designates another person.

                  12. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
exceptions, the Indenture or the Notes may be modified, amended or supplemented
by the Company, the Guarantors and the Trustee with the consent of the Holders
of at least a majority in principal amount of the Notes then outstanding and any
existing default or compliance with any provision may be waived in a particular
instance with the consent of the Holders of a majority in principal amount of
the Notes then outstanding. Without the consent of Holders, the Company, the
Guarantors and the Trustee may amend the Indenture for certain specified
purposes including providing for uncertificated Notes in addition to or in place
of certificated Notes, and curing any ambiguity, omission, defect or
inconsistency, or making any other change that does not adversely affect the
rights of any Holder.

                  13. SUCCESSOR ENTITY. When a successor corporation assumes all
the obligations of its predecessor under the Notes and the Indenture and
immediately before and thereafter no Default exists and certain other conditions
are satisfied, the predecessor corporation will be released from those
obligations.

                                      A-5
<PAGE>   140

                  14. DEFAULTS AND REMEDIES. Events of Default are set fourth in
the Indenture. If an Event of Default (other than an Event of Default pursuant
to Section 6.01(7) or (8) of the Indenture with respect to the Company) occurs
and is continuing, the Trustee by notice to the Company, or the Holders of not
less than 25% in aggregate principal amount of the Notes then outstanding may
declare to be immediately due and payable the entire principal amount of all the
Notes then outstanding plus accrued but unpaid interest and Special Interest, if
any, to the date of acceleration and (i) such amounts shall become immediately
due and payable or (ii) if there are any amounts outstanding under any of the
instruments constituting the Senior Debt, such amounts shall become due and
payable upon the first to occur of an acceleration under any of the instruments
constituting the Senior Debt or five Business Days after receipt by the Company
and the Representative under any of the Senior Debt of notice of the
acceleration of the Notes unless all Events of Default specified in such
Acceleration Notice have been cured or waived. In case an Event of Default
specified in Section 6.01(7) or (8) of the Indenture with respect to the Company
or any Significant Subsidiary occurs, such principal amount, together with
premium, if any, and interest and Special Interest with respect to all of the
Notes, shall be due and payable immediately without any declaration or other act
on the part of the Trustee or the Holders of the Notes. After any such
acceleration but before judgment or decree based on acceleration is obtained by
the Trustee, the Holders of a majority in aggregate principal amount of the
outstanding Notes may, under certain circumstances, rescind and annul such
acceleration and its consequences if, among other things, all existing Events of
Default, other than the nonpayment of accelerated principal, premium or interest
that has become due solely because of the acceleration have been cured or waived
and if the rescission would not conflict with any judgment or decree. No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

                  15. TRUSTEE DEALINGS WITH THE COMPANY. The Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company, any Guarantor or their
Affiliates, and may otherwise deal with the Company, any Guarantor or their
Affiliates as if it were not Trustee.

                  16. NO RECOURSE AGAINST OTHERS. As more fully described in the
Indenture, a director, officer, employee or stockholder, as such, of the Company
or any Subsidiary Guarantor shall not have any liability for any obligations of
the Company or any Subsidiary Guarantor under the Notes or the Indenture or for
any claim based on, in respect or by reason of, such obligations or their
creation. The Holder of this Note by accepting this Note waives and releases all
such liability. The waiver and release are part of the consideration for the
issuance of this Note.

                  17. DEFEASANCE AND COVENANT DEFEASANCE. The Indenture contains
provisions for defeasance of the entire debt represented by the Notes and for
defeasance of certain covenants in the Indenture upon compliance by the Company
in each case with certain conditions set forth in the Indenture.

                  18. ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (joint tenants with right
of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
(Uniform Gifts to Minors Act).

                                      A-6
<PAGE>   141

                  19. CUSIP NUMBERS. The Company has caused CUSIP Numbers to be
printed on the Notes and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Holders of the Notes. No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon.

                  20. GOVERNING LAW. THE INDENTURE AND THE NOTES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE
PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE
INDENTURE OR THE NOTES.

                  21. AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

                  22. ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES
AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders
of Notes under the Indenture, Holders of Notes shall have all the rights set
forth in the Registration Rights Agreement.

                  The Company will furnish to any Holder upon written request
and without charge a copy of the Indenture and/or the Registration Rights
Agreement. Requests may be made to:

                        Paxson Communications Corporation
                            601 Clearwater Park Road
                         West Palm Beach, Florida 33401
                           Attention: General Counsel

                                      A-7
<PAGE>   142

                                 ASSIGNMENT FORM

           To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:
                                              ---------------------------------
                                                (Insert assignee's legal name)

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
to transfer this Note on the books of the Company.  The agent may substitute
another to act for him.

Date:
      --------------------------

                                Your Signature:
                                                -------------------------------
                                                (Sign exactly as your name
                                                appears on the face of this
                                                Note)

Signature Guarantee*:
                      ------------------------------------

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-8
<PAGE>   143

                       OPTION OF HOLDER TO ELECT PURCHASE

           If you want to elect to have this Note purchased by the Company
pursuant to Section 4.10 or 4.18 of the Indenture, check the appropriate box
below:

                        [ ] Section 4.10 [ ] Section 4.18

           If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.18 of the Indenture, state the
aggregate principal amount you elect to have purchased:

                                            $
                                             -----------------------------
Date:
      --------------------------

                                Your Signature:
                                                -------------------------------
                                                (Sign exactly as your name
                                                appears on the face of this
                                                Note)

                                Tax Identification No.:
                                                      -------------------------

Signature Guarantee*:
                      ------------------------------------

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-9
<PAGE>   144

                            FORM OF NOTATION ON NOTE
                        RELATING TO SUBSIDIARY GUARANTEE

                  Each Subsidiary Guarantor (the "Subsidiary Guarantor", which
term includes any successor Person under the Indenture) has unconditionally
guaranteed, on a senior subordinated basis, jointly and severally, to the extent
set forth in the Indenture and subject to the provisions of the Indenture, (a)
the due and punctual payment of the principal of, premium, if any, interest on
and Special Interest, if any, on the Notes, when and as the same shall become
due and payable, whether at maturity, by acceleration or otherwise, the due and
punctual payment of interest on the overdue principal of, premium, if any,
interest and Special Interest, if any, on the Notes, to the extent lawful, and
the due and punctual performance of all other Obligations of the Company to the
Holders or the Trustee all in accordance with the terms of the Notes and the
Indenture, and (b) in the case of any extension of time for payment or renewal
of any Notes or any of such other Obligations, that the same will be promptly
paid in full when due or performed in accordance with the terms of the extension
or renewal, at stated maturity, by acceleration or otherwise.

                  The obligations of each Subsidiary Guarantor to the Holders
and to the Trustee pursuant to this Subsidiary Guarantee and the Indenture are
expressly set forth in Article 10 of the Indenture and reference is hereby made
to the Indenture for the precise terms of this Subsidiary Guarantee.

                  This Subsidiary Guarantee shall not be valid or obligatory for
any purpose until the certificate of authentication on the Note upon which this
Subsidiary Guarantee is noted shall have been executed by the Trustee under the
Indenture by the manual signature of one of its authorized signatories.

                        SUBSIDIARY GUARANTORS:

                        BUD HITS, INC.
                        BUD SONGS, INC.
                        CAP COMMUNICATIONS LICENSE OF NEW LONDON, INC.
                        CAP COMMUNICATIONS OF NEW LONDON, INC.
                        CAP COMMUNICATIONS, INC.
                        CHANNEL 66 OF TAMPA, INC.
                        CLEARLAKE PRODUCTIONS, INC.
                        COCOLA MEDIA CORPORATION OF FLORIDA
                        COCOLA MEDIA CORPORATION OF SAN FRANCISCO, INC.
                        DP MEDIA, INC.
                        DP MEDIA LICENSE OF BATTLE CREEK, INC.
                        DP MEDIA LICENSE OF BOSTON, INC.
                        DP MEDIA LICENSE OF MARTINSBURG, INC.
                        DP MEDIA LICENSE OF MILWAUKEE, INC.
                        DP MEDIA LICENSE OF RALEIGH DURHAM, INC.
                        DP MEDIA OF BATTLE CREEK, INC.
                        DP MEDIA OF BOSTON, INC.
                        DP MEDIA OF MARTINSBURG, INC.
                        DP MEDIA OF MILWAUKEE, INC.
                        DP MEDIA OF RALEIGH DURHAM, INC.

                                      A-10
<PAGE>   145

                        DP MEDIA OF ST. LOUIS, INC.
                        FLAGLER PRODUCTIONS, INC.
                        HISPANIC BROADCASTING, INC.
                        IRON MOUNTAIN PRODUCTIONS, INC.
                        OCEAN STATE TELEVISION, LLC
                        PAX HITS PUBLISHING, INC.
                        PAX INTERNET, INC.
                        PAX NET TELEVISION PRODUCTIONS, INC.
                        PAX NET, INC.
                        PAXSON AKRON LICENSE, INC.
                        PAXSON ALBANY LICENSE, INC.
                        PAXSON ALBUQUERQUE LICENSE, INC.
                        PAXSON ATLANTA LICENSE, INC.
                        PAXSON BIRMINGHAM LICENSE, INC.
                        PAXSON BOSTON LICENSE, INC.
                        PAXSON BOSTON-68 LICENSE, INC.
                        PAXSON BUFFALO LICENSE, INC.
                        PAXSON CEDAR RAPIDS LICENSE, INC.
                        PAXSON CHARLESTON LICENSE, INC.
                        PAXSON CHICAGO LICENSE, INC.
                        PAXSON COMMUNICATIONS LICENSE COMPANY, LLC
                        PAXSON COMMUNICATIONS LPTV, INC.
                        PAXSON COMMUNICATIONS MANAGEMENT COMPANY, INC.
                        PAXSON COMMUNICATIONS OF AKRON-23, INC.
                        PAXSON COMMUNICATIONS OF ALBANY-55, INC.
                        PAXSON COMMUNICATIONS OF ALBUQUERQUE-14, INC.
                        PAXSON COMMUNICATIONS OF ATLANTA-14, INC.
                        PAXSON COMMUNICATIONS OF BIRMINGHAM-44, INC.
                        PAXSON COMMUNICATIONS OF BOSTON-46, INC.
                        PAXSON COMMUNICATIONS OF BOSTON-60, INC.
                        PAXSON COMMUNICATIONS OF BOSTON-68, INC.
                        PAXSON COMMUNICATIONS OF BUFFALO-51, INC.
                        PAXSON COMMUNICATIONS OF CEDAR RAPIDS-48, INC.
                        PAXSON COMMUNICATIONS OF CHARLESTON-29, INC.
                        PAXSON COMMUNICATIONS OF CHICAGO-38, INC.
                        PAXSON COMMUNICATIONS OF DALLAS-68, INC.
                        PAXSON COMMUNICATIONS OF DAVENPORT-67, INC.
                        PAXSON COMMUNICATIONS OF DENVER-59, INC.
                        PAXSON COMMUNICATIONS OF DES MOINES-39, INC.
                        PAXSON COMMUNICATIONS OF DETROIT-31, INC.
                        PAXSON COMMUNICATIONS OF FAYETTEVILLE-62, INC.
                        PAXSON COMMUNICATIONS OF FRESNO-61, INC.
                        PAXSON COMMUNICATIONS OF GREENSBORO-16, INC.
                        PAXSON COMMUNICATIONS OF GREENVILLE-38, INC.
                        PAXSON COMMUNICATIONS OF HONOLULU-66, INC.
                        PAXSON COMMUNICATIONS OF HOUSTON-49, INC.
                        PAXSON COMMUNICATIONS OF JACKSONVILLE-21, INC.
                        PAXSON COMMUNICATIONS OF JACKSONVILLE-35, INC.
                        PAXSON COMMUNICATIONS OF KANSAS CITY-50, INC.
                        PAXSON COMMUNICATIONS OF KNOXVILLE-54, INC.
                        PAXSON COMMUNICATIONS OF LEXINGTON-67, INC.

                                      A-11
<PAGE>   146

                        PAXSON COMMUNICATIONS OF LOS ANGELES-30, INC.
                        PAXSON COMMUNICATIONS OF LOUISVILLE-21, INC.
                        PAXSON COMMUNICATIONS OF MEMPHIS-50, INC.
                        PAXSON COMMUNICATIONS OF MIAMI-35, INC.
                        PAXSON COMMUNICATIONS OF MINNEAPOLIS-41, INC.
                        PAXSON COMMUNICATIONS OF MOBILE-61, INC.
                        PAXSON COMMUNICATIONS OF NASHVILLE-28, INC.
                        PAXSON COMMUNICATIONS OF NEW ORLEANS-49, INC.
                        PAXSON COMMUNICATIONS OF NEW YORK-31, INC.
                        PAXSON COMMUNICATIONS OF NORFOLK-49, INC.
                        PAXSON COMMUNICATIONS OF OKLAHOMA CITY-62, INC.
                        PAXSON COMMUNICATIONS OF ORLANDO-56, INC.
                        PAXSON COMMUNICATIONS OF PHILADELPHIA-61, INC.
                        PAXSON COMMUNICATIONS OF PHOENIX-13, INC.
                        PAXSON COMMUNICATIONS OF PHOENIX-51, INC.
                        PAXSON COMMUNICATIONS OF PITTSBURGH-40, INC.
                        PAXSON COMMUNICATIONS OF PORTLAND-22, INC.
                        PAXSON COMMUNICATIONS OF PORTLAND-23, INC.
                        PAXSON COMMUNICATIONS OF PROVIDENCE-69, INC.
                        PAXSON COMMUNICATIONS OF ROANOKE-38, INC.
                        PAXSON COMMUNICATIONS OF SACRAMENTO-29, INC.
                        PAXSON COMMUNICATIONS OF SALT LAKE CITY-30, INC.
                        PAXSON COMMUNICATIONS OF SAN ANTONIO-26, INC.
                        PAXSON COMMUNICATIONS OF SAN JOSE-65, INC.
                        PAXSON COMMUNICATIONS OF SAN JUAN, INC.
                        PAXSON COMMUNICATIONS OF SCRANTON-64, INC.
                        PAXSON COMMUNICATIONS OF SEATTLE-33, INC.
                        PAXSON COMMUNICATIONS OF SHREVEPORT-21, INC.
                        PAXSON COMMUNICATIONS OF SPOKANE-34, INC.
                        PAXSON COMMUNICATIONS OF ST. CROIX-15, INC.
                        PAXSON COMMUNICATIONS OF SYRACUSE-56, INC.
                        PAXSON COMMUNICATIONS OF TAMPA-66, INC.
                        PAXSON COMMUNICATIONS OF TUCSON-46, INC.
                        PAXSON COMMUNICATIONS OF TULSA-44, INC.
                        PAXSON COMMUNICATIONS OF WASHINGTON-66, INC.
                        PAXSON COMMUNICATIONS OF WAUSAU-46, INC.
                        PAXSON COMMUNICATIONS OF WEST PALM BEACH-67, INC.
                        PAXSON COMMUNICATIONS TELEVISION, INC.
                        PAXSON DALLAS LICENSE, INC.
                        PAXSON DAVENPORT LICENSE, INC.
                        PAXSON DENVER LICENSE, INC.
                        PAXSON DES MOINES LICENSE, INC.
                        PAXSON DETROIT LICENSE, INC.
                        PAXSON DEVELOPMENT, INC.
                        PAXSON FAYETTEVILLE LICENSE, INC.
                        PAXSON FRESNO LICENSE, INC.
                        PAXSON GREENSBORO LICENSE, INC.
                        PAXSON GREENVILLE LICENSE, INC.
                        PAXSON HAWAII LICENSE, INC.
                        PAXSON HOUSTON LICENSE, INC.
                        PAXSON JACKSONVILLE LICENSE, INC.

                                      A-12
<PAGE>   147

                        PAXSON JAX LICENSE, INC.
                        PAXSON KANSAS CITY LICENSE, INC.
                        PAXSON KNOXVILLE LICENSE, INC.
                        PAXSON LEXINGTON LICENSE, INC.
                        PAXSON LOS ANGELES LICENSE, INC.
                        PAXSON MERCHANDISING & LICENSING, INC.
                        PAXSON MIAMI-35 LICENSE, INC.
                        PAXSON MINNEAPOLIS LICENSE, INC.
                        PAXSON MOBILE LICENSE, INC.
                        PAXSON NEW YORK LICENSE, INC.
                        PAXSON NORFOLK LICENSE, INC.
                        PAXSON OKLAHOMA CITY LICENSE, INC.
                        PAXSON ORLANDO LICENSE, INC.
                        PAXSON PHILADELPHIA LICENSE, INC.
                        PAXSON PHOENIX LICENSE, INC.
                        PAXSON PORTLAND LICENSE, INC.
                        PAXSON PRODUCTIONS, INC.
                        PAXSON ROANOKE LICENSE, INC.
                        PAXSON SACRAMENTO LICENSE, INC.
                        PAXSON SALEM LICENSE, INC.
                        PAXSON SALT LAKE CITY LICENSE, INC.
                        PAXSON SAN ANTONIO LICENSE, INC.
                        PAXSON SAN JOSE LICENSE, INC.
                        PAXSON SCRANTON LICENSE, INC.
                        PAXSON SEATTLE LICENSE, INC.
                        PAXSON SHREVEPORT LICENSE, INC.
                        PAXSON SPOKANE LICENSE, INC.
                        PAXSON SPORTS OF MIAMI, INC.
                        PAXSON ST. CROIX LICENSE, INC.
                        PAXSON SYRACUSE LICENSE, INC.
                        PAXSON TAMPA-66 LICENSE, INC.
                        PAXSON TELEVISION PRODUCTIONS, INC.
                        PAXSON TELEVISION, INC.
                        PAXSON TENNESSEE LICENSE, INC.
                        PAXSON TULSA LICENSE, INC.
                        PAXSON WASHINGTON LICENSE, INC.
                        PAXSON WAUSAU LICENSE, INC.
                        PCC DIRECT, INC.
                        RDP COMMUNICATIONS LICENSE OF INDIANAPOLIS, INC.
                        RDP COMMUNICATIONS OF INDIANAPOLIS, INC.
                        RDP COMMUNICATIONS, INC.
                        S&E NETWORK, INC.

                                      A-13
<PAGE>   148

                         TRAVEL CHANNEL ACQUISITION CORPORATION

                         By:
                            -----------------------------------------
                         Name:  Anthony L Morrison
                         Title:  Vice President and Assistant Secretary
                                 of each of such Subsidiary Guarantors

                         AMERICA 51, L.P.

                         By:  Paxson Communications of Phoenix-51, Inc.,
                                 its General Partner and Limited Partner
                         By:  Paxson Communications Television, Inc.,
                                 its Limited Partner

                         By:
                            -----------------------------------------
                         Name:  Anthony L Morrison
                         Title:  Vice President and Assistant
                                 Secretary of such General and Limited Partners

ATTEST:

---------------------------------
Name:
Title:

                                      A-14
<PAGE>   149

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

                  The following exchanges of a part of this Global Note for an
interest in another Global Note or for a Definitive Note, or exchanges of a part
of another Global Note or Definitive Note for an interest in this Global Note,
have been made:

<TABLE>
<CAPTION>

                                                                             PRINCIPAL AMOUNT        SIGNATURE OF
                        AMOUNT OF DECREASE IN   AMOUNT OF INCREASE IN       OF THIS GLOBAL NOTE    AUTHORIZED OFFICER OF
                           PRINCIPAL AMOUNT        PRINCIPAL AMOUNT       FOLLOWING SUCH DECREASE    TRUSTEE OR NOTE
   DATE OF EXCHANGE      OF THIS GLOBAL NOTE      OF THIS GLOBAL NOTE        (OR INCREASE)             CUSTODIAN
   ----------------      -------------------      -------------------     -----------------------    ----------------
<S>                      <C>                       <C>                     <C>                        <C>

</TABLE>

* THIS SCHEDULE SHOULD BE INCLUDED ONLY IF THE NOTE IS ISSUED IN GLOBAL FORM.

                                      A-15
<PAGE>   150

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Paxson Communications Corporation
601 Clearwater Park Road
West Palm Beach, Florida 33401
Attention: General Counsel

The Bank of New York
101 Barclay Street, Floor 21 West
New York, NY 10286

Attention:  Corporate Trust Administration
(Paxson Communications Corporation
10 3/4% Senior Subordinated Notes due July 15, 2008)

                  Re:  10 3/4% Senior Subordinated Notes due July 15, 2008

                  Reference is hereby made to the Indenture, dated as of July
12, 2001 (the "INDENTURE"), between Paxson Communications Corporation, as issuer
(the "COMPANY"), and The Bank of New York, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

                  ___________________ (the "TRANSFEROR"), owns and proposes to
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in
the principal amount of $___________ in such Note[s] or interests (the
"TRANSFER"), to ___________________________ (the "TRANSFEREE"), as further
specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:

                             [CHECK ALL THAT APPLY]

                  1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE 144A GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the United States Securities Act of 1933, as amended (the "SECURITIES ACT"),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect to
which such Person exercises sole investment discretion, and such Person and each
such account is a "qualified institutional buyer" within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A and such Transfer is
in compliance with any applicable blue sky securities laws of any state of the
United States. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on transfer enumerated in the Restricted
Notes Legend printed on the 144A Global Note and/or the Definitive Note and in
the Indenture and the Securities Act.

                  2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE REGULATION S GLOBAL NOTE OR DEFINITIVE NOTE PURSUANT TO
REGULATION S. The Transfer is being effected pursuant to and in accordance with
Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor
hereby further certifies that (i) the Transfer is not being made to a person in
the United States and (x) at the time the buy order was originated, the

                                      B-1
<PAGE>   151

Transferee was outside the United States or such Transferor and any Person
acting on its behalf reasonably believed and believes that the Transferee was
outside the United States or (y) the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act, and (iii) the transaction is
not part of a plan or scheme to evade the registration requirements of the
Securities Act. Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will be subject to the restrictions on Transfer enumerated in the
Restricted Notes Legend printed on the Regulation S Global Note and/or
Definitive Note and in the Indenture and the Securities Act.

                  3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF
A BENEFICIAL INTEREST IN A GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO ANY
PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

                  (a) [ ] such Transfer is being effected pursuant to and in
accordance with Rule 144 under the Securities Act;

                                       or

                  (b) [ ] such Transfer is being effected to the Company or a
subsidiary thereof;

                                       or

                  (c) [ ] such Transfer is being effected pursuant to an
effective registration statement under the Securities Act and in compliance with
the prospectus delivery requirements of the Securities Act;

                                       or

                  (d) [ ] such Transfer is being effected to an Institutional
Accredited Investor for its own account or for the account of such an
Institutional Accredited Investor, in a minimum principal amount of the
securities of $250,000 and pursuant to an exemption from the registration
requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904,
and the Transferor hereby further certifies that it has not engaged in any
general solicitation within the meaning of Regulation D under the Securities Act
and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes
and the requirements of the exemption claimed, which certification is supported
by (1) a certificate executed by the Transferee in the form of Exhibit D to the
Indenture and (2) an Opinion of Counsel provided by the Transferor or the
Transferee (a copy of which the Transferor has attached to this certification),

                                      B-2
<PAGE>   152

to the effect that such Transfer is in compliance with the Securities Act. Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Restricted Notes
Legend printed on the Definitive Notes and in the Indenture and the Securities
Act.

                  4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

                  (a)[ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The
Transfer is being effected pursuant to and in accordance with Rule 144 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Restricted Notes Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Restricted Notes Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

                  (b)[ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in
the Indenture and the Restricted Notes Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Restricted Notes Legend printed on
the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

                  (c)[ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i)
The Transfer is being effected pursuant to and in compliance with an exemption
from the registration requirements of the Securities Act other than Rule 144,
Rule 903 or Rule 904 and in compliance with the transfer restrictions contained
in the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Restricted Notes Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Restricted Notes Legend printed on the Restricted Global Notes
or Restricted Definitive Notes and in the Indenture.

                                      B-3
<PAGE>   153

                  This certificate and the statements contained herein are made
for your benefit and the benefit of the Company.

                                               [Insert Name of Transferor]

                                          By:
                                             ---------------------------------
                                            Name:
                                            Title:
Dated:
       -----------------------------

                                      B-4
<PAGE>   154

                       ANNEX A TO CERTIFICATE OF TRANSFER

1. The Transferor owns and proposes to transfer the following:

                                   [CHECK ONE]

    (a)  [ ]   a beneficial interest in the:
         (i)   [ ]     144A Global Note (CUSIP _________________), or

         (ii)  [ ]     IAI Global Note (CUSIP _________________), or

         (iii) [ ]     Regulation S Global Note (CUSIP _________________),
                        or

         (iv)  [ ]     Unrestricted Global Note (CUSIP _________________), or

    (b)  [ ]   a Restricted Definitive Note; or
    (c)  [ ]   an Unrestricted Definitive Note,

2. After the Transfer the Transferee will hold:

                                   [CHECK ONE]

    (a)  [ ]   a beneficial interest in the:
         (i)   [ ]     144A Global Note (CUSIP _________________), or

         (ii)  [ ]     IAI Global Note (CUSIP _________________), or

         (iii) [ ]     Regulation S Global Note (CUSIP _________________),
                        or

         (iv)  [ ]     Unrestricted Global Note (CUSIP _________________), or

    (b)  [ ]   a Restricted Definitive Note; or
    (c)  [ ]   an Unrestricted Definitive Note,
    in accordance with the terms of the Indenture.

                                      B-5
<PAGE>   155

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Paxson Communications Corporation
601 Clearwater Park Road
West Palm Beach, Florida 33401
Attention: General Counsel

The Bank of New York
101 Barclay Street, Floor 21 West
New York, NY 10286

Attention:  Corporate Trust Administration
(Paxson Communications Corporation
10 3/4% Senior Subordinated Notes due July 15, 2008)

           Re:  10 3/4% Senior Subordinated Notes due July 15, 2008

                          (CUSIP _____________________)

                  Reference is hereby made to the Indenture, dated as of July
12, 2001 (the "INDENTURE"), between Paxson Communications Corporation, as issuer
(the "COMPANY"), and The Bank of New York, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

                  __________________________ (the "OWNER"), owns and proposes to
exchange the Note[s] or interest in such Note[s] specified herein, in the
principal amount of $____________ in such Note[s] or interests (the "EXCHANGE").
In connection with the Exchange, the Owner hereby certifies that:

                  1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL
INTERESTS IN A RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR
BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL NOTE.

                  (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
connection with the Exchange of the Owner's beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner's own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the
Global Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the "SECURITIES ACT"), (iii) the restrictions on
transfer contained in the Indenture and the Restricted Notes Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

                  (b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note

                                      C-1
<PAGE>   156

is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Restricted Notes Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Note is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

                  (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Restricted Notes Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

                  (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
TO UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Restricted Notes Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

                  2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL
INTERESTS IN RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR
BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES.

                  (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for a
Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner's
own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in
the Restricted Notes Legend printed on the Restricted Definitive Note and in the
Indenture and the Securities Act.

                  (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
TO BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the
Exchange of the Owner's Restricted Definitive Note for a beneficial interest in
a Restricted Global Note with an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner's own

                                      C-2
<PAGE>   157

account without transfer and (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, and in compliance with
any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions on
transfer enumerated in the Restricted Notes Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

                  This certificate and the statements contained herein are made
for your benefit and the benefit of the Company.

                                                [Insert Name of Transferor]

                                             By:
                                                -------------------------------
                                               Name:
                                               Title:
Dated:
       -----------------------------

                                      C-3
<PAGE>   158

                                                                       EXHIBIT D

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Paxson Communications Corporation
601 Clearwater Park Road
West Palm Beach, Florida 33401
Attention: General Counsel

The Bank of New York
101 Barclay Street, Floor 21 West
New York, NY 10286

Attention:  Corporate Trust Administration
(Paxson Communications Corporation
10 3/4% Senior Subordinated Notes due July 15, 2008)

                  Re:  10 3/4% Senior Subordinated Notes due July 15, 2008

                  Reference is hereby made to the Indenture, dated as of July
12, 2001 (the "INDENTURE"), between Paxson Communications Corporation, as issuer
(the "COMPANY"), and The Bank of New York, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

                  In connection with our proposed purchase of $____________
aggregate principal amount of:

                  (a)      [ ]      a beneficial interest in a Global Note, or

                  (b)      [ ]      a Definitive Note,

                  we confirm that:

                  1. We understand that any subsequent transfer of the Notes or
any interest therein is subject to certain restrictions and conditions set forth
in the Indenture and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "SECURITIES ACT").

                  2. We understand that the offer and sale of the Notes have not
been registered under the Securities Act, and that the Notes and any interest
therein may not be offered or sold except as permitted in the following
sentence. We agree, on our own behalf and on behalf of any accounts for which we
are acting as hereinafter stated, that if we should sell the Notes or any
interest therein, we will do so only (A) to the Company or any subsidiary
thereof, (B) in accordance with Rule 144A under the Securities Act to a
"qualified institutional buyer" (as defined therein), (C) to an institutional
"accredited investor" (as defined below) that, prior to such transfer, furnishes
(or has furnished on its behalf by a U.S. broker-dealer) to you and to the
Company a signed letter substantially in the form of this letter and an Opinion
of Counsel in form reasonably acceptable to the Company to the effect that such

                                      D-1
<PAGE>   159

transfer is in compliance with the Securities Act, (D) outside the United States
in accordance with Rule 904 of Regulation S under the Securities Act, (E)
pursuant to the provisions of Rule 144(k) under the Securities Act or (F)
pursuant to an effective registration statement under the Securities Act, and we
further agree to provide to any person purchasing the Definitive Note or
beneficial interest in a Global Note from us in a transaction meeting the
requirements of clauses (A) through (E) of this paragraph a notice advising such
purchaser that resales thereof are restricted as stated herein.

                  3. We understand that, on any proposed resale of the Notes or
beneficial interest therein, we will be required to furnish to you and the
Company such certifications, legal opinions and other information as you and the
Company may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

                  4. We are an institutional "accredited investor" (as defined
in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Notes, and
we and any accounts for which we are acting are each able to bear the economic
risk of our or its investment.

                  5. We are acquiring the Notes or beneficial interest therein
purchased by us for our own account or for one or more accounts (each of which
is an institutional "accredited investor") as to each of which we exercise sole
investment discretion.

                  You and the Company are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

                                        ---------------------------------------
                                        [Insert Name of Accredited Investor]

                                        By:
                                           ------------------------------------
                                          Name:
                                          Title:
Dated:
       -----------------------------

                                      D-2<PAGE>   1
                                                                     EXHIBIT 4.7

                                  $360,000,000

                                CREDIT AGREEMENT

                            DATED AS OF JULY 12, 2001

                                      AMONG

                        PAXSON COMMUNICATIONS CORPORATION

                                   AS BORROWER

                                       AND

                            THE LENDERS PARTY HERETO

                                       AND

                               CITICORP USA, INC.

                 AS ADMINISTRATIVE AGENT AND AS COLLATERAL AGENT

                                       AND

                         UNION BANK OF CALIFORNIA, N.A.

                              AS SYNDICATION AGENT

                                       AND

                                    CIBC INC.

                                       AND

                      GENERAL ELECTRIC CAPITAL CORPORATION

                           AS CO-DOCUMENTATION AGENTS

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

                            SALOMON SMITH BARNEY INC.

                   AS SOLE BOOK MANAGER AND SOLE LEAD ARRANGER

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                      PAGE
                                                                                                      ----
<S>                                                                                                    <C>
Article I         Definitions, Interpretation And Accounting Terms......................................1
   Section 1.1.     Defined Terms.......................................................................1
   Section 1.2.     Computation of Time Periods........................................................29
   Section 1.3.     Accounting Terms and Principles....................................................29
   Section 1.4.     Certain Terms......................................................................29

Article II        The Facilities.......................................................................30
   Section 2.1.     The Commitments....................................................................30
   Section 2.2.     Borrowing Procedures...............................................................30
   Section 2.3.     Reduction and Termination of the Revolving Credit Commitments and Term A Loan
                    Commitments........................................................................31
   Section 2.4.     Repayment of Loans.................................................................32
   Section 2.5.     Evidence of Debt...................................................................33
   Section 2.6.     Optional Prepayments...............................................................34
   Section 2.7.     Mandatory Prepayments..............................................................34
   Section 2.8.     Interest...........................................................................36
   Section 2.9.     Conversion/Continuation Option.....................................................36
   Section 2.10.    Fees...............................................................................37
   Section 2.11.    Payments and Computations..........................................................37
   Section 2.12.    Special Provisions Governing Eurodollar Rate Loans.................................40
   Section 2.13.    Capital Adequacy...................................................................41
   Section 2.14.    Taxes..............................................................................41
   Section 2.15.    Substitution of Lenders............................................................43

Article III       Conditions To Loans..................................................................44
   Section 3.1.     Conditions Precedent to Initial Loans..............................................44
   Section 3.2.     Conditions Precedent to Each Loan..................................................46

Article IV        Representations and Warranties.......................................................47
   Section 4.1.     Corporate Existence; Compliance with Law...........................................47
   Section 4.2.     Corporate Power; Authorization; Enforceable Obligations............................48
   Section 4.3.     Ownership of Subsidiaries..........................................................49
   Section 4.4.     FCC Matters........................................................................49
   Section 4.5.     Financial Statements...............................................................50
   Section 4.6.     Material Adverse Change............................................................51
   Section 4.7.     Solvency...........................................................................51
   Section 4.8.     Litigation.........................................................................51
   Section 4.9.     Taxes..............................................................................51
   Section 4.10.    Full Disclosure....................................................................51
   Section 4.11.    Margin Regulations.................................................................52

</TABLE>

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   Section 4.12.    No Burdensome Restrictions; No Defaults............................................52
   Section 4.13.    Investment Company Act; Public Utility Holding Company Act.........................52
   Section 4.14.    Use of Proceeds....................................................................52
   Section 4.15.    Surviving Debt.....................................................................53
   Section 4.16.    Insurance..........................................................................53
   Section 4.17.    Labor Matters......................................................................53
   Section 4.18.    ERISA..............................................................................53
   Section 4.19.    Environmental Matters..............................................................53
   Section 4.20.    Intellectual Property..............................................................55
   Section 4.21.    Title..............................................................................55
   Section 4.22.    New Senior Subordinated Debt Documents; Ranking of Obligations.....................56
   Section 4.23.    Material Agreements................................................................56

Article V         Financial Covenants..................................................................57
   Section 5.1.     Minimum Net Revenue................................................................57
   Section 5.2.     Minimum EBITDA.....................................................................58
   Section 5.3.     Maximum Senior Debt Leverage Ratio.................................................58
   Section 5.4.     Maximum Leverage Ratio.............................................................59
   Section 5.5.     Minimum Interest Coverage Ratio....................................................59
   Section 5.6.     Minimum Fixed Charge Coverage Ratio................................................60
   Section 5.7.     Capital Expenditures...............................................................60

Article VI        Reporting Covenants..................................................................60
   Section 6.1.     Financial Statements...............................................................61
   Section 6.2.     Default Notices....................................................................62
   Section 6.3.     Litigation.........................................................................62
   Section 6.4.     Station Appraisals.................................................................62
   Section 6.5.     Asset Sales........................................................................62
   Section 6.6.     SEC Filings; Press Releases........................................................63
   Section 6.7.     Insurance..........................................................................63
   Section 6.8.     ERISA Matters......................................................................63
   Section 6.9.     Other Information..................................................................63

Article VII       Affirmative Covenants................................................................63
   Section 7.1.     Preservation of Corporate Existence, Etc...........................................64
   Section 7.2.     Compliance with Laws, Etc..........................................................64
   Section 7.3.     Conduct of Business................................................................64
   Section 7.4.     FCC Licenses.......................................................................64
   Section 7.5.     Payment of Taxes, Etc..............................................................64
   Section 7.6.     Maintenance of Insurance...........................................................64

</TABLE>

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   Section 7.7.     Access.............................................................................65
   Section 7.8.     Keeping of Books...................................................................65
   Section 7.9.     Maintenance of Properties, Etc.....................................................65
   Section 7.10.    Application of Proceeds............................................................65
   Section 7.11.    Environmental......................................................................65
   Section 7.12.    Additional Collateral and Guaranties...............................................66
   Section 7.13.    Interest Rate Contracts............................................................67
   Section 7.14.    Unrestricted Subsidiaries..........................................................67
   Section 7.15.    Dissolution Subsidiaries...........................................................67

Article VIII      Negative Covenants...................................................................68
   Section 8.1.     Indebtedness.......................................................................68
   Section 8.2.     Liens, Etc.........................................................................69
   Section 8.3.     Investments........................................................................70
   Section 8.4.     Sale of Assets.....................................................................71
   Section 8.5.     Restricted Payments................................................................72
   Section 8.6.     Operating Leases; Sale/Leasebacks..................................................72
   Section 8.7.     Restriction on Fundamental Changes; Permitted Acquisitions.........................73
   Section 8.8.     Change in Nature of Business.......................................................73
   Section 8.9.     Transactions with Affiliates.......................................................73
   Section 8.10.    Restrictions on Subsidiary Distributions; No New Negative Pledge...................73
   Section 8.11.    Disposal of Subsidiary Stock.......................................................74
   Section 8.12.    Modification of Constituent Documents..............................................74
   Section 8.13.    Material Agreements................................................................74
   Section 8.14.    Modification of Subordinated Debt Documents and Preferred Stock Documents..........74
   Section 8.15.    Accounting Changes; Fiscal Year....................................................75
   Section 8.16.    Margin Regulations.................................................................75
   Section 8.17.    Cancellation of Indebtedness Owed to It............................................75
   Section 8.18.    No Speculative Transactions........................................................75
   Section 8.19.    Compliance with ERISA..............................................................75

Article IX        Events of Default....................................................................75
   Section 9.1.     Events of Default..................................................................75
   Section 9.2.     Remedies...........................................................................77
   Section 9.3.     Rescission.........................................................................78

Article X         The Administrative Agent and Collateral Agent........................................78
   Section 10.1.    Authorization and Action...........................................................78
   Section 10.2.    Administrative Agent's Reliance, Etc...............................................79

</TABLE>

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   Section 10.3.    The Administrative Agent Individually..............................................79
   Section 10.4.    Lender Credit Decision.............................................................80
   Section 10.5.    Indemnification....................................................................80
   Section 10.6.    Successor Administrative Agent.....................................................80
   Section 10.7.    Concerning the Collateral and the Collateral Documents.............................81
   Section 10.8.    Collateral Matters Relating to Related Obligations.................................82

Article XI        Miscellaneous........................................................................82
   Section 11.1.    Amendments, Waivers, Etc...........................................................82
   Section 11.2.    Assignments and Participations.....................................................83
   Section 11.3.    Costs and Expenses.................................................................86
   Section 11.4.    Indemnities........................................................................87
   Section 11.5.    Limitation of Liability............................................................88
   Section 11.6.    Right of Set-off...................................................................88
   Section 11.7.    Sharing of Payments, Etc...........................................................88
   Section 11.8.    Notices, Etc.......................................................................89
   Section 11.9.    No Waiver; Remedies................................................................89
   Section 11.10.   Binding Effect.....................................................................89
   Section 11.11.   Governing Law......................................................................90
   Section 11.12.   Submission to Jurisdiction; Service of Process.....................................90
   Section 11.13.   Waiver of Jury Trial...............................................................90
   Section 11.14.   Marshaling; Payments Set Aside.....................................................90
   Section 11.15.   Section Titles.....................................................................91
   Section 11.16.   Execution in Counterparts..........................................................91
   Section 11.17.   Entire Agreement...................................................................91
   Section 11.18.   Confidentiality....................................................................91
   Section 11.19.   Designated Senior Debt.............................................................91

SCHEDULES

Schedule I        -   Commitments
Schedule II       -   Applicable Lending Offices and Addresses for Notices
Schedule III      -   Preferred Stock Documents
Schedule 4.2      -   Consents
Schedule 4.3      -   Ownership of Subsidiaries
Schedule 4.4      -   FCC Licenses
Schedule 4.8      -   Litigation
Schedule 4.16     -   Insurance
Schedule 4.18     -   ERISA
Schedule 8.1      -   Existing Indebtedness
Schedule 8.2      -   Existing Liens
Schedule 8.3      -   Existing Investments
</TABLE>

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EXHIBITS

Exhibit A       -   Form of Assignment and Acceptance
Exhibit B-1     -   Form of Revolving Credit Note
Exhibit B-2     -   Form of Term A Note
Exhibit B-3     -   Form of Term B Note
Exhibit C       -   Form of Notice of Borrowing
Exhibit D       -   Form of Notice of Conversion or Continuation
Exhibit E       -   Form of Opinion of Counsel for the Loan Parties
Exhibit F       -   Form of Guaranty
Exhibit G       -   Form of Pledge and Security Agreement

</TABLE>

                                       v

<PAGE>   7

                  CREDIT AGREEMENT, dated as of July 12, 2001, among PAXSON
COMMUNICATIONS CORPORATION, a Delaware corporation (the "BORROWER"), the Lenders
(as defined below), CITICORP USA, INC. ("CITICORP"), as administrative agent for
the Lenders and as collateral agent for the Secured Parties under the Collateral
Documents (in each such capacity, the "ADMINISTRATIVE AGENT"), UNION BANK OF
CALIFORNIA, N.A. ("UBOC") as syndication agent for the Lenders (in such
capacity, the "SYNDICATION AGENT") and CIBC, INC. and GENERAL ELECTRIC CAPITAL
CORPORATION each as co-documentation agents for the Lenders (in such capacities,
the "CO-DOCUMENTATION AGENTS").

                              W I T N E S S E T H:

                  WHEREAS, the Borrower has requested that the Lenders make
available for the purposes specified in this Agreement term loans and a
revolving credit facility; and

                  WHEREAS, the Lenders are willing to make available to the
Borrower such term loans and revolving credit facility upon the terms and
subject to the conditions set forth herein;

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

                                   ARTICLE I

                DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

                  SECTION 1.1. DEFINED TERMS. As used in this Agreement, the
following terms have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

                  "ACQUISITION AGREEMENT" means any agreement, contract or other
document pursuant to which a Loan Party has agreed to consummate a Permitted
Acquisition.

                  "ADJUSTED WORKING CAPITAL" means, for any Person at any date,
the amount by which the Consolidated Current Assets of such Person (excluding
cash and cash equivalents) at such date exceeds the Consolidated Current
Liabilities of such Person at such date.

                  "ADMINISTRATIVE AGENT" has the meaning specified in the
preamble to this Agreement.

                  "AFFILIATE" means, with respect to any Person, any other
Person which, directly or indirectly, controls, is controlled by or is under
common control with such Person, each general partner or joint venturer of such
Person and each Person who is the beneficial owner of 10% or more of the Voting
Stock of such Person. For the purposes of this definition, "CONTROL" means the
possession of the power to direct or cause the direction of management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

                  "AGENCY COMMISSIONS" means compensation to advertising
agencies based on a percentage of gross revenue sold through such agencies.

                  "AGREEMENT" means this Credit Agreement.

<PAGE>   8

                  "APPLICABLE LENDING OFFICE" means, with respect to each
Lender, its Domestic Lending Office in the case of a Base Rate Loan, and its
Eurodollar Lending Office in the case of a Eurodollar Rate Loan.

                  "APPLICABLE MARGIN" means (a) with respect to the Term B Loans
maintained as (i) Base Rate Loans, a rate equal to 2.00% per annum and (ii)
Eurodollar Rate Loans, a rate equal to 3.00% per annum and (b) with respect to
Term A Loans and Revolving Loans, (x) during the period commencing on the
Closing Date and ending one Business Day after the receipt by the Administrative
Agent of the financial statements required to be delivered by SECTION 6.1(B) for
the full fiscal quarter ending December 31, 2003, if maintained (i) as Base Rate
Loans, a rate equal to 2.00% per annum and (ii) as Eurodollar Rate Loans, a rate
equal to 3.00% per annum, and (y) thereafter, as of any date of determination, a
per annum rate equal to the rate set forth below opposite the applicable type of
Loan and the then applicable Leverage Ratio (determined for the twelve-month
period ending on the last day of the most recent Fiscal Quarter or Fiscal Year,
as applicable, for which Financial Statements have been delivered pursuant to
SECTION 6.1) set forth below:
<TABLE>
<CAPTION>

                                                    TERM A LOANS & REVOLVING LOANS
                                     -------------------------------------------------------------
          LEVERAGE RATIO                    BASE RATE LOANS          EURODOLLAR RATE LOANS
------------------------------------ ------------------------------- -----------------------------
<S>                                              <C>                            <C>
Greater than 6 to 1                              2.00%                          3.00%
------------------------------------ ------------------------------- -----------------------------
Equal to or less than 6 to 1 and
greater than 4.5 to 1                            1.75%                          2.75%
------------------------------------ ------------------------------- -----------------------------
Equal to or less than 4.5 to 1                   1.50%                          2.50%
------------------------------------ ------------------------------- -----------------------------
</TABLE>

Subsequent changes in the Applicable Margin resulting from a change in the
Leverage Ratio shall become effective as to all Loans one Business Day after
delivery by the Borrower to the Administrative Agent of new financial statements
pursuant to SECTION 6.1(B) for each of the first three Fiscal Quarters of each
Fiscal Year and SECTION 6.1(C) for each Fiscal Year. Notwithstanding anything to
the contrary set forth in this Agreement (including the then effective Leverage
Ratio), if the Borrower shall fail to deliver such financial statements within
the time periods specified in SECTION 6.1(B) or (C), as applicable, the
Applicable Margin from and including the 46th day after the end of such Fiscal
Quarter or the 91st day after the end of such Fiscal Year, as the case may be,
to but not including the date the Borrower delivers to the Administrative Agent
such financial statements shall equal the highest Applicable Margin set forth
above.

                  "APPLICABLE UNUSED COMMITMENT FEE RATE" means 0.50% per annum.

                  "APPROVED FUND" means any Fund that is advised or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or Affiliate of an
entity that administers or manages a Lender.

                  "ARRANGER" means Salomon Smith Barney Inc., in its capacity as
sole book manager and sole lead arranger.

                  "ASSET SALE" has the meaning specified in SECTION 8.4.

                                        2
<PAGE>   9

                  "ASSET SWAP" means any exchange, with any other Person, of (a)
assets owned by the Borrower or any of its Subsidiaries for (b) Equivalent
Assets of such other Person.

                  "ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in substantially the form of EXHIBIT A.

                  "AVAILABLE CREDIT" means, at any time, an amount equal to (i)
the then effective Revolving Credit Commitments MINUS (ii) the aggregate
Revolving Loans at such time.

                  "BASE RATE" means, for any period, a fluctuating interest rate
per annum as shall be in effect from time to time, which rate per annum shall be
equal at all times to the highest of:

                  (a) the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank's base rate;

                  (b) the sum (adjusted to the nearest 0.25% or, if there is no
nearest 0.25%, to the next higher 0.25%) of (i) 0.5% per annum PLUS (ii) the
rate per annum obtained by dividing (A) the latest three-week moving average of
secondary market morning offering rates in the United States for three-month
certificates of deposit of major United States money market banks, such
three-week moving average being determined weekly on each Monday (or, if any
such day is not a Business Day, on the next succeeding Business Day) for the
three-week period ending on the previous Friday by Citibank on the basis of such
rates reported by certificate of deposit dealers to and published by the Federal
Reserve Bank of New York or, if such publication shall be suspended or
terminated, on the basis of quotations for such rates received by Citibank from
three New York certificate of deposit dealers of recognized standing selected by
Citibank, by (B) a percentage equal to 100% MINUS the average of the daily
percentages specified during such three-week period by the Federal Reserve Board
for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) for Citibank in respect of
liabilities consisting of or including (among other liabilities) three-month
U.S. dollar nonpersonal time deposits in the United States, PLUS (iii) the
average during such three-week period of the maximum annual assessment rates
estimated by Citibank for determining the then current annual assessment payable
by Citibank to the Federal Deposit Insurance Corporation (or any successor) for
insuring Dollar deposits in the United States; and

                  (c) the sum of (i) 0.5% per annum PLUS (ii) the Federal Funds
Rate.

                  "BASE RATE LOAN" means any Loan during any period in which it
bears interest based on the Base Rate.

                  "BORROWING" means a borrowing consisting of Loans made on the
same day by the Lenders ratably according to their respective Commitments. A
Borrowing may be a Revolving Credit Borrowing, a Term A Loan Borrowing or a Term
B Loan Borrowing.

                  "BROADCAST PERMIT" means any Permit relating to the operation
of Stations.

                  "BUSINESS DAY" means a day of the year on which banks are not
required or authorized to close in New York City and, if the applicable Business
Day relates to notices, determinations, fundings and payments in connection with
the Eurodollar Rate or any Eurodollar Rate Loans, a day on which dealings in
Dollar deposits are also carried on in the London interbank market.

                                       3
<PAGE>   10

                  "CAPITAL EXPENDITURES" means for any period, the aggregate of
all expenditures (whether paid in cash or accrued as a liability and including
that portion of Capital Leases which is capitalized on the consolidated balance
sheet of the Borrower) by the Borrower and its Subsidiaries during such period
that, in conformity with GAAP, are included as additions to property, plant or
equipment as reflected in the consolidated statement of changes in financial
position of the Borrower and its Subsidiaries, including, but not limited to,
capital expenditures (a) made in connection with the conversion of a Station
from an analog broadcast format to a digital broadcast format, (b) pursuant to
joint sales agreements, (c) on capital maintenance and (d) Programming Rights
Payments in excess of Programming Amortization Expense.

                  "CAPITAL LEASE" means, with respect to any Person, any lease
of property by such Person as lessee which would be accounted for as a capital
lease on a balance sheet of such Person prepared in conformity with GAAP.

                  "CAPITAL LEASE OBLIGATIONS" means, with respect to any Person,
the capitalized amount of all obligations of such Person or any of its
Subsidiaries under Capital Leases, as determined on a consolidated basis in
conformity with GAAP.

                  "CASH COLLATERAL ACCOUNT" has the meaning specified in the
Pledge and Security Agreement.

                  "CASH EQUIVALENTS" means any of the following:

                  (a) U.S. Government Obligations maturing within 365 days of
         the date of acquisition thereof;

                  (b) time deposit accounts, certificates of deposit and money
         market deposits maturing within 90 days of the date of acquisition
         thereof issued by a bank or trust company organized under the laws of
         the United States of America or any state thereof having capital,
         surplus and undivided profits aggregating in excess of $500,000,000 and
         whose long-term debt is rated "A-3" or A-" or higher according to
         Moody's Investor Services Inc. ("MOODY'S") or Standard & Poors Rating
         Services ("S&P") (or such similar equivalent rating by at least one
         "NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION" (as defined in
         Rule 436 under the Securities Act of 1933));

                  (c) repurchase obligations with a term of not more than 30
         days for underlying securities of the types described in clause (a)
         entered into with: (i) a bank meeting the qualifications described in
         clause (b) above; or (ii) any primary government securities dealer
         reporting to the Market Reports Division of the Federal Reserve Bank of
         New York;

                  (d) commercial paper, maturing not more than 90 days after the
         date of acquisition, issued by a corporation (other than an Affiliate
         of the Borrower) organized and in existence under the laws of the
         United States of America with a rating at the time as of which any
         Investment therein is made of "P-1" (or higher) according to Moody's or
         "A-1" (or higher) according to S&P (or such similar equivalent rating
         by at least one "NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION"
         (as defined in Rule 436 under the Securities Act)); and

                  (e) direct obligations (or certificates representing an
         ownership interest in such obligations) of any state of the United
         States of America (including any agency or instrumentality thereof) for
         the payment of which the full faith and credit of such state is pledged

                                       4
<PAGE>   11

         and which are not callable or redeemable at the issuer's option,
         PROVIDED that: (i) the long-term debt of such state is rated "A-3" or
         "A-" or higher according to Moody's or S&P (or such similar equivalent
         rating by at least one "NATIONALLY RECOGNIZED STATISTICAL RATING
         ORGANIZATION" (as defined in Rule 436 under the Securities Act)); and
         (ii) such obligations mature within 180 days of the date of acquisition
         thereof.

                  "CHANGE OF CONTROL" means any event, transaction or occurrence
as a result of which (i) either Paxson or NBC ceases to own and control, of
record and beneficially, Stock of the Borrower possessing the voting power under
normal circumstances to cast 51% or more of the Borrower's Voting Stock or (ii)
either Paxson or NBC ceases to have the voting power or the contractual right to
elect a majority of the Borrower's board of directors.

                  "CITIBANK" means Citibank, N.A., a national banking
association.

                  "CITICORP" has the meaning specified in the preamble to this
Agreement.

                  "CLOSING DATE" means the first date on which any Loan is made.

                  "CODE" means the Internal Revenue Code of 1986 (or any
successor legislation thereto), as amended from time to time.

                  "COLLATERAL" means all property and interests in property and
proceeds thereof now owned or hereafter acquired by any Loan Party in or upon
which a Lien is granted under any of the Collateral Documents.

                  "COLLATERAL DOCUMENTS" means the Pledge and Security Agreement
and any other document executed and delivered by a Loan Party granting a Lien on
any of its property to secure payment of the Secured Obligations.

                  "COMMITMENT" means, with respect to any Lender, such Lender's
Revolving Credit Commitment, if any, Term A Loan Commitment, if any, and Term B
Loan Commitment and "COMMITMENTS" means the aggregate Revolving Credit
Commitments, Term A Loan Commitments and Term B Loan Commitments of all Lenders.

                  "COMMUNICATIONS ACT" means the Communications Act of 1934, as
amended (including, without limitation, the Cable Communications Policy Act of
1984 and the Cable Television Consumer Protection and Competition Act of 1992)
and all rules and regulations of the FCC, in each case as from time to time in
effect.

                  "COMPLIANCE CERTIFICATE" has the meaning specified in SECTION
6.1(D).

                  "CONSOLIDATED CURRENT ASSETS" means, with respect to any
Person at any date, the total consolidated current assets of such Person and its
Subsidiaries at such date, determined in conformity with GAAP.

                  "CONSOLIDATED CURRENT LIABILITIES" means, with respect to any
Person at any date, all liabilities of such Person and its Subsidiaries at such
date which should, in accordance with GAAP, be classified as current liabilities
on a consolidated balance sheet of such Person and its Subsidiaries prepared in
conformity with GAAP, but excluding, in the case of the Borrower the sum of (a)

                                       5
<PAGE>   12

the principal amount of any current portion of long-term Total Debt and (b)
(without duplication of CLAUSE (A) above) the then outstanding principal amount
of the Loans.

                  "CONSOLIDATED NET INCOME" means, for any Person for any
period, the net income (or loss) of such Person and its Subsidiaries for such
period, determined on a consolidated basis in conformity with GAAP.

                  "CONSTITUENT DOCUMENTS" means, with respect to any Person, (a)
the articles/certificate of incorporation (or the equivalent organizational
documents) of such Person, (b) the by-laws (or the equivalent governing
documents) of such Person and (c) any document setting forth the manner of
election and duties of the directors or managing members of such Person (if any)
and the designation, amount and/or relative rights, limitations and preferences
of any class or series of such Person's Stock.

                  "CONTRACTUAL OBLIGATION" of any Person means any obligation,
agreement, undertaking or similar provision of any Security issued by such
Person or of any agreement, undertaking, contract, lease, indenture, mortgage,
deed of trust or other instrument (excluding a Loan Document) to which such
Person is a party or by which it or any of its property is bound or to which any
of its properties is subject.

                  "CONTROL ACCOUNT LETTER" has the meaning specified in the
Pledge and Security Agreement.

                  "CORE BUSINESS" means the ownership or operation of network
television stations and cable television channels; the production or purchase of
television or cable television programming; the exhibition of television
programming via one or more satellite television networks owned by one or more
Persons other than the Borrower or any of its Subsidiaries; long form
advertising production, in each case (without limiting the ability of the
Borrower or its Subsidiaries to distribute or make broadcasts or other
transmissions in respect of the foregoing to any location) located in the United
States and its territories, including Puerto Rico and the Virgin Islands; and
any ancillary activities conducted as of the Closing Date and all other
ancillary activities, all of which ancillary activities are and shall at all
times be incidental to any of the foregoing.

                  "CUSTOMARY PERMITTED LIENS" means, with respect to any Person,
any of the following Liens:

                  (a) Liens with respect to the payment of taxes, assessments or
         governmental charges in all cases which are not yet due or which are
         being contested in good faith by appropriate proceedings and with
         respect to which adequate reserves or other appropriate provisions are
         being maintained to the extent required by GAAP;

                  (b) Liens of landlords arising by statute and liens of
         suppliers, mechanics, carriers, materialmen, warehousemen or workmen
         and other liens imposed by law created in the ordinary course of
         business for amounts not yet due or which are being contested in good
         faith by appropriate proceedings and with respect to which adequate
         reserves or other appropriate provisions are being maintained to the
         extent required by GAAP;

                  (c) deposits made in the ordinary course of business in
         connection with worker's compensation, unemployment insurance or other
         types of social security benefits, to secure the performance of bids,
         tenders, sales, contracts (other than for the repayment of borrowed

                                       6
<PAGE>   13

         money) or pursuant to the terms of Acquisition Agreements and surety,
         appeal, customs or performance bonds;

                  (d) encumbrances arising by reason of zoning restrictions,
         easements, licenses, reservations, covenants, rights-of-way, utility
         easements, building restrictions and other similar encumbrances on the
         use of real property which do not materially detract from the value of
         such real property or materially interfere with the ordinary conduct of
         the business conducted and proposed to be conducted at such real
         property;

                  (e) attachments or judgment Liens not constituting an Event of
         Default under SECTION 9.1(G).

                  (f) encumbrances arising under leases or subleases of real
         property which do not in the aggregate materially detract from the
         value of such real property or materially interfere with the ordinary
         conduct of the business conducted and proposed to be conducted at such
         real property; and

                  (g) financing statements of a lessor's rights in and to
         property leased to such Person relating to leases permitted by this
         Agreement.

                  "DEBT ISSUANCE" means the incurrence of Indebtedness of the
type specified in CLAUSE (A) and (b) of the definition of "INDEBTEDNESS" by the
Borrower or any of its Subsidiaries.

                  "DEFAULT" means any event which with the passing of time or
the giving of notice or both would become an Event of Default.

                  "DISSOLUTION SUBSIDIARIES" means each Subsidiary of the
Borrower identified as such on SCHEDULE 4.3.

                  "DIVIDEND PAYMENT RATIO" means, with respect to the Borrower
for any period, the ratio of (a) EBITDA of the Borrower and its Subsidiaries for
such period to (b) the sum of (i) Interest Expense of the Borrower and its
Subsidiaries for such period, (ii) scheduled principal payments during such
period of Total Debt of the Borrower and each of its Subsidiaries determined on
a consolidated basis in conformity with GAAP, and (iii) all cash dividends
payable by the Borrower on its 12-1/2% Cumulative Exchangeable Preferred Stock
in respect of such period.

                  "DOLLARS" and the sign "$" each mean the lawful money of the
United States of America.

                  "DOMESTIC LENDING OFFICE" means, with respect to any Lender,
the office of such Lender specified as its "DOMESTIC LENDING OFFICE" opposite
its name on SCHEDULE II or on the Assignment and Acceptance by which it became a
Lender or such other office of such Lender as such Lender may from time to time
specify to the Borrower and the Administrative Agent.

                  "DOMESTIC SUBSIDIARY" means any Subsidiary of the Borrower
organized under the laws of any state or territory of the United States of
America or the District of Columbia.

                  "EBITDA" means for any period, the sum (without duplication)
of the amounts for such period of (a) Consolidated Net Income, (b) Interest
Expense (including, for this purpose, dividends and accretions on Preferred
Stock to the extent deducted in the calculation of Consolidated Net Income), (c)
taxes payable by the Borrower and its Subsidiaries on a consolidated basis to

                                       7
<PAGE>   14

the extent deducted from Consolidated Net Income, (d) total depreciation
expense, (e) total amortization expense (excluding Programming Amortization
Expense), (f) (to the extent included in such Consolidated Net Income for such
period) losses on sales of assets, (g) non-recurring restructuring charges
related to the implementation of joint sales agreements, (h) other non-cash
items reducing Consolidated Net Income, including (without limitation) stock
based compensation, non-cash write-offs of syndicated programming rights
contracts entered into before December 31, 2000 and equity losses from any
equity Investments resulting from the operation of such business in ordinary
course, without giving effect to any extraordinary unusual and non-recurring
gains LESS the sum (without duplication) of the amounts for such period of (i)
non-cash items increasing Consolidated Net Income, including (without
limitation) equity gains from any equity Investments resulting from the
operation of such business in ordinary course and (ii) (to the extent included
in such Consolidated Net Income for such period) gains on the sales of assets,
all of the foregoing as determined on a consolidated basis for the Borrower and
its Subsidiaries and (unless otherwise defined) in conformity with GAAP. For the
purposes of calculating EBITDA for any period, any Permitted Acquisition shall
be deemed to have occurred on the first day of such period, any Asset Sale shall
be deemed to have occurred as of the day before the first day of such period,
and EBITDA shall be adjusted to give effect to such Permitted Acquisition or
Asset Sale in accordance with the foregoing.

                  "8% SERIES B CONVERTIBLE EXCHANGEABLE PREFERRED STOCK" means
the convertible exchangeable preferred stock of the Borrower designated the 8%
Series B Convertible Exchangeable Preferred Stock, issued by the Borrower
pursuant to, and with such rights, restrictions, privileges and preferences as
set forth in a Certificate of Designation dated September 15, 1999.

                  "ELIGIBLE ASSIGNEE" means (a) a Lender or any Affiliate or
Approved Fund of such Lender; (b) a commercial bank having total assets in
excess of $5,000,000,000; (c) a finance company, insurance company, other
financial institution or fund reasonably acceptable to the Administrative Agent,
which is regularly engaged in making, purchasing or investing in loans
including, with respect to any proposed assignment of all or a portion of a
Lender's Revolving Credit Commitment, revolving loans, and having a net worth in
excess of $250,000,000 or, to the extent net worth is less than such amount, a
finance company, insurance company, other financial institution or fund,
reasonably acceptable to the Administrative Agent and the Borrower; or (d) a
savings and loan association or savings bank organized under the laws of the
United States or any State thereof which has a net worth, determined in
accordance with GAAP, in excess of $250,000,000.

                  "ENVIRONMENTAL CLAIM" means any accusation, allegation, notice
of violation, claim, demand, abatement order or other order or direction
(conditional or otherwise) by any governmental authority or any Person for any
damage, including, without limitation, personal injury (including sickness,
disease or death), tangible or intangible property damage, contribution,
indemnity, indirect or consequential damages, damage to the environment,
nuisance, pollution, contamination or other adverse effects on the environment,
or for fines, penalties or restrictions, resulting from or based upon (i) the
existence of a Release (whether sudden or non-sudden or accidental or
non-accidental), of, or exposure to, any Hazardous Material, in, into or onto
the environment, (ii) the use, handling, transportation, storage, treatment or
disposal of Hazardous Materials, or (iii) the violation, or alleged violation,
of any Environmental Laws.

                  "ENVIRONMENTAL LAWS" means any and all foreign, Federal,
state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority or other

                                       8
<PAGE>   15

Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the
environment, as now or may at any time hereafter be in effect.

                  "EQUITY ISSUANCE" means the issue or sale of any Stock of the
Borrower or any of the Subsidiaries of the Borrower by the Borrower or any of
the Subsidiaries of the Borrower to any Person other than the Borrower or any of
such Subsidiaries.

                  "EQUIVALENT ASSETS" means in respect of (i) any Station, any
television station or television stations; and (ii) any Non-Core Business, any
Core Business

                  "ERISA" means the Employee Retirement Income Security Act of
1974 (or any successor legislation thereto), as amended from time to time.

                  "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) under common control or treated as a single employer with the
Borrower or any of its Subsidiaries within the meaning of Section 414 (b), (c),
(m) or (o) of the Code.

                  "ERISA EVENT" means (a) a reportable event described in
Section 4043(b) or 4043(c)(1), (2), (3), (5), (6), (8) or (9) of ERISA with
respect to a Title IV Plan or a Multiemployer Plan; (b) the withdrawal of the
Borrower, any of its Subsidiaries or any ERISA Affiliate from a Title IV Plan
subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer, as defined in Section 4001(a)(2) of ERISA; (c) the
complete or partial withdrawal of the Borrower, any of its Subsidiaries or any
ERISA Affiliate from any Multiemployer Plan; (d) notice of reorganization or
insolvency of a Multiemployer Plan; (e) the filing of a notice of intent to
terminate a Title IV Plan or the treatment of a plan amendment as a termination
under Section 4041 of ERISA; (f) the institution of proceedings to terminate a
Title IV Plan or Multiemployer Plan by the PBGC; (g) the failure to make any
required contribution to a Title IV Plan or Multiemployer Plan; (h) the
imposition of a lien under Section 412 of the Code or Section 302 of ERISA on
the Borrower or any of its Subsidiaries or any ERISA Affiliate; or (i) any other
event or condition which might reasonably be expected to constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Title IV Plan or Multiemployer Plan or the imposition
of any liability under Title IV of ERISA, other than for PBGC premiums due but
not delinquent under Section 4007 of ERISA.

                  "EUROCURRENCY LIABILITIES" has the meaning assigned to that
term in Regulation D of the Federal Reserve Board, as in effect from time to
time.

                  "EURODOLLAR BASE RATE" means, with respect to any Interest
Period for any Eurodollar Rate Loan, the rate determined by the Administrative
Agent to be the offered rate for deposits in Dollars for the applicable Interest
Period which appears on the Dow Jones Markets Telerate Page 3750 as of 11:00
a.m., London time, on the second full Business Day next preceding the first day
of each Interest Period. In the event that such rate does not appear on the Dow
Jones Markets Telerate Page 3750 (or otherwise on the Dow Jones Markets screen),
the Eurodollar Base Rate for the purposes of this definition shall be determined
by reference to such other comparable publicly available service for displaying
eurodollar rates as may be selected by the Administrative Agent.

                  "EURODOLLAR LENDING OFFICE" means, with respect to any Lender,
the office of such Lender specified as its "EURODOLLAR LENDING OFFICE" opposite
its name on SCHEDULE II or on the Assignment and Acceptance by which it became a

                                       9
<PAGE>   16

Lender (or, if no such office is specified, its Domestic Lending Office) or such
other office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

                  "EURODOLLAR RATE" means, with respect to any Interest Period
for any Eurodollar Rate Loan, an interest rate per annum equal to the rate per
annum obtained by dividing (a) the Eurodollar Base Rate by (b) a percentage
equal to 100% MINUS the reserve percentage applicable two Business Days before
the first day of such Interest Period under regulations issued from time to time
by the Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement)
for a member bank of the Federal Reserve System in New York City with respect to
liabilities or assets consisting of or including Eurocurrency Liabilities (or
with respect to any other category of liabilities which includes deposits by
reference to which the Eurodollar Rate is determined) having a term equal to
such Interest Period.

                  "EURODOLLAR RATE LOAN" means any Loan that, for an Interest
Period, bears interest based on the Eurodollar Rate.

                  "EVENT OF DEFAULT" has the meaning specified in SECTION 9.1.

                  "EXCESS CASH FLOW" means, for the Borrower for any period,
EBITDA of the Borrower for such period PLUS the sum of (without duplication) (a)
the excess, if any, of the Adjusted Working Capital of the Borrower at the
beginning of such period over the Adjusted Working Capital of the Borrower at
the end of such period and (b) the excess, if any, of Programming Amortization
Expense for such period over of Programming Rights Payments for such period LESS
the sum of (without duplication) (i) scheduled and mandatory cash interest and
principal payments on the Facilities during such period and optional cash
principal payments on the Facilities during such period (but, in the case of
Revolving Facility, only to the extent that the Revolving Credit Commitments are
permanently reduced by the amount of such payments), (ii) scheduled cash
principal payments and cash payments of Preferred Stock dividends made by the
Borrower or any of its Subsidiaries during such period on other Indebtedness or
on Preferred Stock (as the case may be) to the extent such other Indebtedness,
Preferred Stock and such payments in respect thereof are permitted by this
Agreement, (iii) taxes paid by the Borrower and its Subsidiaries on a
consolidated basis, (iv) Capital Expenditures made by the Borrower or any of its
Subsidiaries during such period to the extent permitted by this Agreement, (v)
Programming Rights Payments in excess of Programming Amortization Expense and
(vi) the excess, if any, of the Adjusted Working Capital of the Borrower at the
end of such period over the Adjusted Working Capital of the Borrower at the
beginning of such period.

                  "EXISTING CREDIT FACILITY" means the Borrower's existing
credit facility pursuant to the Second Amended and Restated Credit Agreement
dated as of April 28, 1998, among the Borrower, the lenders party thereto and
UBOC, as agent.

                  "FACILITIES" means (a) the Term A Loan Facility, (b) the Term
B Loan Facility and (c) the Revolving Credit Facility.

                  "FAIR MARKET VALUE" means (a) with respect to any asset or
group of assets (other than a marketable Security) at any date, the value of the
consideration obtainable in a sale or other disposition of such asset (or
assets) at such date assuming a sale by a willing seller to a willing purchaser
dealing at arm's length and arranged in an orderly manner over a reasonable
period of time having regard to the nature and characteristics of such asset (or
assets), as reasonably determined by the board of directors of the Borrower and

                                       10
<PAGE>   17

(b) with respect to any marketable Security at any date, the closing sale price
of such Security on the Business Day next preceding such date, as appearing in
any published list of any national securities exchange or the Nasdaq Stock
Market or, if there is no such closing sale price of such Security, the final
price for the purchase of such Security at face value quoted on such business
day by a financial institution of recognized standing which regularly deals in
securities of such type selected by the Administrative Agent.

                  "FCC" means the Federal Communications Commission and any
successor governmental agency performing functions similar to those performed by
the Federal Communications Commission on the date hereof.

                  "FCC LICENSES" means broadcasting and other licenses,
authorizations, waivers and permits which are issued from time to time by the
FCC.

                  "FEDERAL FUNDS RATE" means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day
on such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by it.

                  "FEDERAL RESERVE BOARD" means the Board of Governors of the
Federal Reserve System, or any successor thereto.

                  "FEE LETTER" shall mean the letter dated as of June 12, 2001
addressed to the Borrower from Citicorp, the Arranger, UBOC, CIBC World Markets
Corp. and Canadian Imperial Bank of Commerce and accepted by the Borrower on
June 12, 2001, with respect to certain fees to be paid by the Borrower from time
to time to the other parties thereto.

                  "FINAL MATURITY DATE" means, at any time, the latest to occur
of the Term A Loan Maturity Date, the Term B Loan Maturity Date and the
Scheduled Termination Date.

                  "FINANCIAL STATEMENTS" means the financial statements of the
Borrower and its Subsidiaries delivered in accordance with SECTIONS 4.5 and 6.1.

                  "FISCAL QUARTER" means each of the three month periods ending
on March 31, June 30, September 30 and December 31.

                  "FISCAL YEAR" means the twelve month period ending on December
31.

                  "FIXED CHARGE COVERAGE RATIO" means, with respect to any
period, the ratio of (a) EBITDA for such period to (b) the consolidated Fixed
Charges of the Borrower and its Subsidiaries for such period.

                  "FIXED CHARGES" means, for any Person for any period, the sum
of (a) the Interest Expense of such Person for such period, (b) the total
federal income tax liability actually payable by such Person in respect of such
period, (c) the principal amount of Total Debt of such Person and each of its
Subsidiaries determined on a consolidated basis in conformity with GAAP having a
scheduled due date during such period, (d) all cash dividends paid by such

                                       11
<PAGE>   18

Person and its Subsidiaries on Preferred Stock in respect of such period to
Persons other than such Person and its Subsidiaries and (e) Programming Rights
Payments in excess of Programming Amortization Expense.

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

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect from time to time set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and the statements and pronouncements
of the Financial Accounting Standards Board, or in such other statements by such
other entity as may be in general use by significant segments of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

                  "GE CAPITAL FACILITY" means the Borrower's existing credit
facility pursuant to the Credit Agreement dated August 28, 1998 among the
Borrower, the lenders party thereto and General Electric Capital Corporation, as
agent.

                  "GOVERNMENTAL AUTHORITY" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

                  "GUARANTY" means the guaranty of the Obligations of the
Borrower (except in respect of the Loan Sub-Portion), in substantially the form
of EXHIBIT F, executed by each Subsidiary Guarantor.

                  "GUARANTY OBLIGATION" means, as applied to any Person, any
direct or indirect liability, contingent or otherwise, of such Person with
respect to any Indebtedness of another Person, if the purpose or intent of such
Person in incurring the Guaranty Obligation is to provide assurance to the
obligee of such Indebtedness that such Indebtedness will be paid or discharged,
or that any agreement relating thereto will be complied with, or that any holder
of such Indebtedness will be protected (in whole or in part) against loss in
respect thereof including, (a) the direct or indirect guaranty, endorsement
(other than for collection or deposit in the ordinary course of business),
co-making, discounting with recourse or sale with recourse by such Person of
Indebtedness of another Person and (b) any liability of such Person for
Indebtedness of another Person through any agreement (contingent or otherwise)
(i) to purchase, repurchase or otherwise acquire such Indebtedness or any
security therefor, or to provide funds for the payment or discharge of such
Indebtedness (whether in the form of a loan, advance, stock purchase, capital
contribution or otherwise), (ii) to maintain the solvency or any balance sheet
item, level of income or financial condition of another Person, (iii) to make
take-or-pay or similar payments, if required, regardless of non-performance by
any other party or parties to an agreement, (iv) to purchase, sell or lease (as
lessor or lessee) property, or to purchase or sell services, primarily for the
purpose of enabling the debtor to make payment of such Indebtedness or to assure
the holder of such Indebtedness against loss, or (v) to supply funds to or in
any other manner invest in such other Person (including to pay for property or
services irrespective of whether such property is received or such services are
rendered), if in the case of any agreement described under subclause (i), (ii),
(iii), (iv) or (v) of clause (b) of this sentence the primary purpose or intent
thereof is as described in the preceding sentence. The amount of any Guaranty

                                       12
<PAGE>   19

Obligation shall be equal to the lesser of (x) the amount of the Indebtedness so
guaranteed or otherwise supported and (b) the maximum amount of such Person's
liability (contingent or otherwise) under such Guaranty Obligation.

                  "HAZARDOUS MATERIALS" means (a) any chemical, material or
substance defined as or included in the definition of "HAZARDOUS SUBSTANCES,"
"HAZARDOUS WASTES," "HAZARDOUS MATERIALS," "EXTREMELY HAZARDOUS WASTE,"
"RESTRICTED HAZARDOUS WASTE," or "TOXIC SUBSTANCES" or words of similar import
under any applicable Environmental Laws, (b) any oil, petroleum or petroleum
derived substance, any drilling fluids, produced waters and other wastes
associated with the exploration, development or production of crude oil, any,
flammable substances or explosives, any radioactive materials, any hazardous
wastes or substances, any toxic wastes or substances or any other materials or
pollutants which (i) pose a material hazard to any property of the Borrower or
any of its Subsidiaries or to Persons on or about such property or (ii) cause
such property to be in violation of any Environmental Laws, (c) asbestos in any
form which is or could become friable, urea formaldehyde foam insulation,
polychlorinated biphenyls, and (d) any other chemical, material or substance,
exposure to which is prohibited, limited or regulated by any governmental
authority or may or could pose a hazard to the health and safety of the owners,
occupants or any Persons surrounding the Facilities.

                  "HEDGING CONTRACTS" means all Interest Rate Contracts, foreign
exchange contracts, currency swap or option agreements, forward contracts,
commodity swap, purchase or option agreements, other commodity price hedging
arrangements, and all other similar agreements or arrangements designed to alter
the risks of any Person arising from fluctuations in interest rates, currency
values or commodity prices.

                  "INDEBTEDNESS" of any Person means, without duplication, (a)
all indebtedness of such Person for borrowed money, (b) all obligations of such
Person evidenced by instruments or which bear interest, (c) all reimbursement
and all obligations with respect to letters of credit, bankers' acceptances,
surety bonds and performance bonds, whether or not matured, (d) all indebtedness
for the deferred purchase price of property (other than trade payables incurred
in the ordinary course of business), (e) all indebtedness of such Person created
or arising under any conditional sale or other title retention agreement, (f)
all capital lease obligations of such Person, (g) all Guaranty Obligations of
such Person, (h) all obligations of such Person to purchase, redeem, retire,
defease or otherwise acquire for value any capital stock of such Person, (i) all
payments that such Person would have to make in the event of an early
termination on the date Indebtedness of such Person is being determined in
respect of Hedging Contracts of such Person and (j) any of the foregoing
Indebtedness secured by any Lien upon or in property owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Indebtedness.

                  "INDEMNITEES" has the meaning specified in SECTION 11.4.

                  "INFORMATION MEMORANDUM" means the information memorandum
dated June 14, 2001 prepared by the Borrower in connection with the syndication
of the Facilities.

                  "INTEREST COVERAGE RATIO" means, with respect to any period,
the ratio of (a) EBITDA for such period to (b) consolidated Interest Expense of
the Borrower and its Subsidiaries for such period.

                  "INTEREST EXPENSE" means, for any period, the sum of (a) total
interest expense (including that portion attributable to Capital Leases in
accordance with GAAP and capitalized interest and the net cash costs associated
with Hedging Contracts) of the Borrower and its Subsidiaries on a consolidated
basis for such period with respect to all outstanding Indebtedness of the

                                       13
<PAGE>   20

Borrower and its Subsidiaries, including, without limitation, (i) all interest
payable to the Senior Lenders and all commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers' acceptance financing
and (ii) time brokerage and affiliate fees under LMA Agreements relating to the
financing of radio or television stations as to which the Borrower or any of its
Subsidiaries has an agreement or option to acquire if such Station is not owned
by the Borrower at the end of such period, LESS (b) total interest income of the
Borrower and its Subsidiaries on a consolidated basis for such period. In
determining Interest Expense for any period, there shall be (x) included all
interest expense attributable to Indebtedness incurred or assumed by the
Borrower or any of their Subsidiaries during the period in connection with any
Permitted Acquisition as if such Indebtedness was incurred or assumed on the day
before the first day of such period and bore interest from the first day of such
period until the date of such incurrence or assumption at a rate per annum equal
to the weighted average rate of interest on the other Indebtedness outstanding
during such period and (y) excluded Interest Expense attributable to that
portion of the principal amount of Indebtedness repaid in connection with an
Asset Sale as if such portion of the principal amount of Indebtedness was
prepaid on the day before the first day of such period.

                  "INTEREST PERIOD" means, in the case of any Eurodollar Rate
Loan, (a) initially, the period commencing on the date such Eurodollar Rate Loan
is made or on the date of conversion of a Base Rate Loan to such Eurodollar Rate
Loan and ending one, two, three or six months thereafter (or (x) if deposits of
such duration are available to the Administrative Agent, ending nine months
thereafter or (y) if deposits of such duration are available to all Lenders,
ending twelve months thereafter), as selected by the Borrower in its Notice of
Borrowing or Notice of Conversion or Continuation given to the Administrative
Agent pursuant to SECTION 2.2 or 2.10, and (b) thereafter, if such Loan is
continued, in whole or in part, as a Eurodollar Rate Loan pursuant to SECTION
2.10, a period commencing on the last day of the immediately preceding Interest
Period therefor and ending one, two, three or six months thereafter (or (x) if
deposits of such duration are available to the Administrative Agent, ending nine
months thereafter or (y) if deposits of such duration are available to all
Lenders, ending twelve months thereafter), as selected by the Borrower in its
Notice of Conversion or Continuation given to the Administrative Agent pursuant
to SECTION 2.10; PROVIDED, HOWEVER, that all of the foregoing provisions
relating to Interest Periods in respect of Eurodollar Rate Loans are subject to
the following:

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

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

                  (iii) the Borrower may not select any Interest Period that
         ends after the date of a scheduled principal payment on the Loans as
         set forth in ARTICLE II unless, after giving effect to such selection,
         the aggregate unpaid principal amount of the Loans for which Interest
         Periods end after such scheduled principal payment shall be equal to or
         less than the principal amount to which the Loans are required to be
         reduced after such scheduled principal payment is made;

                                       14
<PAGE>   21

                  (iv) the Borrower may only select an Interest Period in
         respect of Loans having an aggregate principal amount of at least
         $2,000,000 or an integral multiple of $1,000,000 in excess thereof; and

                  (v) there shall be outstanding at any one time no more than
         eight Interest Periods in the aggregate.

                  "INTEREST RATE CONTRACTS" means all interest rate swap
agreements, interest rate cap agreements, interest rate collar agreements and
interest rate insurance.

                  "INVESTMENT" means, with respect to any Person, (a) any
purchase or other acquisition by that Person of (i) any Security issued by, (ii)
a beneficial interest in any Security issued by, or (iii) any other equity
ownership interest in, any other Person, (b) any purchase by that Person of all
or a significant part of the assets of a business conducted by another Person,
(c) any loan, advance (other than deposits with financial institutions available
for withdrawal on demand, prepaid expenses, accounts receivable and similar
items made or incurred in the ordinary course of business as presently
conducted), or capital contribution by that Person to any other Person,
including all Indebtedness of any other Person to that Person arising from a
sale of property by that Person other than in the ordinary course of its
business, and (d) any Guaranty Obligation incurred by that Person in respect of
Indebtedness of any other Person.

                  "INVENTORY" has the meaning specified in the Pledge and
Security Agreement.

                  "IRS" means the Internal Revenue Service of the United States
or any successor thereto.

                  "JOINT VENTURE" means a joint venture, partnership or other
similar arrangement, whether in corporate, partnership or other legal form.

                  "LEASES" means, with respect to any Person, all of those
leasehold estates in real property of such Person, as lessee, as such may be
amended, supplemented or otherwise modified from time to time.

                  "LENDER" means each financial institution or other entity that
(a) is listed on the signature pages hereof as a "LENDER" or (b) from time to
time becomes a party hereto by execution of an Assignment and Acceptance.

                  "LEVERAGE RATIO" means, with respect to any period, the ratio
of (a) consolidated Total Debt of the Borrower and its Subsidiaries as of the
last day of such period to (b) EBITDA for such period.

                  "LICENSE SUBSIDIARY" means any wholly-owned Subsidiary of the
Borrower which now or hereafter holds a Material FCC License, including the
Restricted License Subsidiary.

                  "LIEN" means any mortgage, deed of trust, pledge,
hypothecation, assignment, charge, deposit arrangement, encumbrance, lien
(statutory or other), security interest or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
intended to assure payment of any Indebtedness or other obligation, including
any conditional sale or other title retention agreement, the interest of a
lessor under a Capital Lease, any financing lease having substantially the same
economic effect as any of the foregoing, and the filing of any financing

                                       15
<PAGE>   22

statement under the Uniform Commercial Code or comparable law of any
jurisdiction naming the owner of the asset to which such Lien relates as debtor.

                  "LIQUIDITY" means, as at any date of determination, the sum of
(a) the Available Credit in respect of the Revolving Credit Facility and (b)
cash and Cash Equivalents of the Borrower at such time.

                  "LMA AGREEMENT" means any agreement pursuant to which the
Borrower or any Subsidiary operates an LMA Television Station.

                  "LMA TELEVISION STATION" means any television station operated
by the Borrower or any of its Subsidiaries pursuant to a local marketing
agreement, time brokerage agreement or similar arrangement.

                  "LOAN" means any loan made by any Lender pursuant to this
Agreement.

                  "LOAN DOCUMENTS" means, collectively, this Agreement, the
Notes (if any), each Guaranty, the Fee Letter, each Hedging Contract to which a
Loan Party and a Lender or an Affiliate of a Lender is a party, each agreement
pursuant to which a Lender or an Affiliate of a Lender provides cash management
services to a Loan Party, the Collateral Documents and each certificate,
agreement or document executed by a Loan Party and delivered to the
Administrative Agent or any Lender in connection with or pursuant to any of the
foregoing.

                  "LOAN PARTY" means each of the Borrower, each Subsidiary
Guarantor and each other Subsidiary of the Borrower that executes and delivers a
Loan Document.

                  "LOAN SUB-PORTION" means the portion of the Term B Loan Loans
which are applied on the Closing Date to redeem the 12% Junior Preferred Stock
in an aggregate amount of $59,100,000.

                  "MARKET RANKED STATIONS" means, from time to time, Stations in
order of the highest to lowest "MARKET RANK " based on the number of television
households in the television market or "DESIGNATED MARKET AREA (DMA)", as most
recently determined by Nielsen Media Research (or its successor) at such time.

                  "MATERIAL ADVERSE CHANGE" means an event or development (a)
that would have a material adverse effect on the business, assets, operations,
properties, condition (financial or otherwise) or prospects of the Borrower and
its Subsidiaries, taken as a whole, (b) that would adversely affect the
legality, validity or enforceability of the Loan Documents or (c) that would
adversely affect the ability of the Borrower to repay the Obligations or of the
Loan Parties to perform their obligations under the Loan Documents.

                  "MATERIAL AGREEMENT" means any Subordinated Debt Document, any
Preferred Stock Document and the NBC Investment Agreement.

                  "MATERIAL FCC LICENSE" means a FCC License, the cancellation
or termination (except pursuant to an Asset Sale permitted hereby) of which
could reasonably be expected to (a) result in a Material Adverse Change or (b)
prevent any of the top ten Market Ranked Stations from broadcasting its digital
or analog signal in accordance with the rules, regulations and requirements of
the FCC.

                                       16
<PAGE>   23

                  "MULTIEMPLOYER PLAN" means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower, any of its Subsidiaries or
any ERISA Affiliate has any obligation or liability, contingent or otherwise.

                  "NBC" means National Broadcasting Company, Inc., a Delaware
corporation.

                  "NBC INVESTMENT AGREEMENT" means the investment agreement
dated as of September 15, 1999 between the Borrower and NBC and the other
agreements entered into in connection therewith.

                  "NET CASH PROCEEDS" means proceeds received by the Borrower or
any of its Subsidiaries after the Closing Date in cash or Cash Equivalents from
any (a) Asset Sale, other than an Asset Sale permitted under CLAUSES (A) through
(E) of SECTION 8.4, net of (i) the reasonable cash costs of sale, assignment or
other disposition, (ii) taxes paid or payable as a result thereof and (iii) any
amount required to be paid or prepaid on Indebtedness (other than the
Obligations) secured by the assets subject to such Asset Sale; PROVIDED,
HOWEVER, that the evidence of each of (I), (II) and (III) are provided to the
Administrative Agent in form and substance reasonably satisfactory to it; (b)
Property Loss Event; or (c) (i) Equity Issuance (other than any such issuance of
common Stock of the Borrower occurring in the ordinary course of business to any
director, member of the management or employee of the Borrower or its
Subsidiaries), or (ii) Debt Issuance, other than a Debt Issuance referred to in
SECTION 8.1, in each case net of brokers' and advisors' fees and other costs
incurred in connection with such transaction; PROVIDED, HOWEVER, that in the
case of this clause (c) evidence of such costs is provided to the Administrative
Agent in form and substance reasonably satisfactory to it.

                  "NET REVENUE" means with respect to the Borrower and its
Subsidiaries for any period, (a) the aggregate of gross revenues earned during
such period LESS (b) the aggregate of Agency Commissions incurred during such
period.

                  "NEW SENIOR SUBORDINATED NOTES" means the 10-3/4% Senior
Subordinated Notes due July 15, 2008 of the Borrower in the aggregate principal
amount of $200,000,000.

                  "NEW SENIOR SUBORDINATED DEBT DOCUMENTS" means the New Senior
Subordinated Notes and the Indenture dated as of July 12, 2001 among the
Borrower and The Bank of New York, as trustee, pursuant to which the New Senior
Subordinated Notes shall be issued in a public offering or in a Rule 144A or
other private placement.

                  "9-3/4% SERIES A CONVERTIBLE PREFERRED STOCK" means the
convertible preferred stock of the Borrower designated the 9-3/4% Series A
Convertible Preferred Stock, issued by the Borrower pursuant to, and with such
rights, restrictions, privileges and preferences as set forth in a Certificate
of Designation dated June 9, 1998.

                  "NON-FUNDING LENDER" has the meaning specified in SECTION
2.2(E).

                  "NON-U.S. LENDER" means each Lender or Administrative Agent
that is not a United States person as defined in Section 7701(a)(30) of the
Code.

                  "NOTE" means any Revolving Credit Note, Term A Loan Note or
Term B Loan Note.

                  "NOTICE OF BORROWING" has the meaning specified in SECTION
2.2(A).

                                       17
<PAGE>   24

                  "NOTICE OF CONVERSION OR CONTINUATION" has the meaning
specified in SECTION 2.10.

                  "OBLIGATIONS" means the Loans, and all other amounts,
obligations, covenants and duties owing by the Borrower to the Administrative
Agent, any Lender, any Affiliate of any of them or any Indemnitee, of every type
and description (whether by reason of an extension of credit, opening or
amendment of a letter of credit or payment of any draft drawn thereunder, loan,
guaranty, indemnification, foreign exchange or currency swap transaction,
interest rate hedging transaction or otherwise), present or future, arising
under this Agreement, any other Loan Document, any Hedging Contract, any
agreement for cash management services entered into in connection with this
Agreement or any other Loan Document, whether direct or indirect (including
those acquired by assignment), absolute or contingent, due or to become due, now
existing or hereafter arising and however acquired and whether or not evidenced
by any note, guaranty or other instrument or for the payment of money, and
includes all letter of credit, cash management and other fees, interest,
charges, expenses, fees, attorneys' fees and disbursements and other sums
chargeable to the Borrower under this Agreement, any other Loan Document, any
Hedging Contract or any agreement for cash management services entered into in
connection with this Agreement or any other Loan Document.

                  "OWNED TELEVISION STATION" means any television station owned
by the Borrower or any of its Subsidiaries.

                  "OWNERSHIP REPORT" means with respect to any broadcast radio
or television station owned by the Borrower or any of its Subsidiaries, the
reports and certifications filed with the FCC pursuant to 47 C.F.R. Section
73.3615, or any comparable reports filed pursuant to any successor regulation
thereto.

                  "PAXSON" means Lowell W. Paxson, or after his death, his heirs
or estate or both.

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
successor thereto.

                  "PERMIT" means any permit, approval, authorization, license,
variance or permission required from a Governmental Authority under an
applicable Requirement of Law.

                  "PERMITTED ACQUISITION" means the acquisition by the Borrower
or any of its Subsidiaries of all or substantially all of the assets of any
Person or operating division of any Person, or all or substantially all the
Stock of any Person which (i) is or operates a television broadcasting station
or (ii) is consistent with the Borrower's Core Business (such Person being the
"TARGET"), or the merger of the Target with or into the Borrower or any
Subsidiary of the Borrower (with the Borrower, in the case of a merger with the
Borrower, being the surviving corporation) subject to the satisfaction of each
of the following conditions:

                  (a) the Administrative Agent shall receive at least thirty
         days' prior written notice of such proposed acquisition, which notice
         shall include a reasonably detailed description of such proposed
         acquisition;

                  (b) the Borrower shall have demonstrated, to the
         Administrative Agent's reasonable satisfaction that (i) until delivery
         of a Compliance Certificate for the Fiscal Quarter ended March 31,
         2004, after giving effect to such proposed acquisition, the Borrower
         shall have Liquidity of at least $65,000,000 and (ii) after delivery of

                                       18
<PAGE>   25

         a Compliance Certificate for the Fiscal Quarter ended March 31, 2004,
         the Borrower shall be in compliance with the financial covenants set
         forth in SECTIONS 5.3 through 5.7 on an historical PRO FORMA basis for
         the period of four Fiscal Quarters ending immediately prior to such
         proposed acquisition (assuming such acquisition occurred on the first
         day of the applicable period);

                  (c) such proposed acquisition shall only involve assets
         located in the United States and its territories, including Puerto Rico
         and the Virgin Islands;

                  (d) if the Securities of the Target are publicly traded, such
         proposed acquisition shall be consensual and shall have been approved
         by the Target's board of directors;

                  (e) no additional Indebtedness shall be incurred, assumed or
         otherwise be reflected on a consolidated balance sheet of the Borrower
         and Target after giving effect to such proposed acquisition, except
         Indebtedness permitted under SECTION 8.1;

                  (f) the consideration payable, whether in cash or in non-cash
         assets of the Borrower and its Subsidiaries (determined by reference to
         the Fair Market Value of such assets), in connection with such proposed
         acquisition shall not exceed (excluding any portion of such
         consideration which is paid from an Equity Issuance of the Borrower)
         $20,000,000 in the aggregate (except that the consideration payable for
         the proposed acquisitions of the New Orleans and Memphis television
         broadcasting stations may exceed $20,000,000 individually but shall not
         exceed $44,000,000 in the aggregate);

                  (g) at or prior to the closing of any proposed acquisition,
         the Borrower (or the Subsidiary making such acquisition) and the Target
         shall have executed such documents and taken such actions as may be
         required under SECTION 7.12;

                  (h) concurrently with delivery of the notice referred to in
         CLAUSE (A) above, the Borrower shall have delivered to the
         Administrative Agent, in form and substance reasonably satisfactory to
         the Administrative Agent and the Requisite Lenders, such other
         financial information, financial analysis, documentation or other
         information relating to such proposed acquisition as the Administrative
         Agent or the Requisite Lenders shall reasonably request;

                  (i) on or prior to the date of such proposed acquisition, all
         necessary and material consents or approvals from or by, all necessary
         filings with, and all necessary notices to, each Governmental Authority
         having jurisdiction, including the FCC and the Securities and Exchange
         Commission, to the extent required to consummate such acquisition,
         shall have been obtained or made, as the case may be;

                  (j) on or prior to the date of such proposed acquisition, the
         Administrative Agent shall have received, in form and substance
         reasonably satisfactory to the Administrative Agent, copies of the
         acquisition agreement and related agreements and instruments, and all
         opinions, certificates, lien search results and other documents
         reasonably requested by the Administrative Agent; and

                  (k) at the time of such proposed acquisition and after giving
         effect thereto, no Default or Event of Default shall have occurred and
         be continuing and all representations and warranties contained in
         ARTICLE IV and in the other Loan Documents shall be true and correct in

                                       19
<PAGE>   26

         all material respects (except to the extent such representation and
         warranty expressly relates to an earlier date).

                  "PERSON" means an individual, partnership, corporation
(including a business trust), joint stock company, estate, trust, limited
liability company, unincorporated association, joint venture or other entity, or
a Governmental Authority.

                  "PLEDGE AND SECURITY AGREEMENT" means an agreement, in
substantially the form of EXHIBIT G, executed by the Borrower, and each
Subsidiary Guarantor.

                  "PLEDGED NOTES" has the meaning specified in the Pledge and
Security Agreement. "PLEDGED STOCK" has the meaning specified in the Pledge and
Security Agreement.

                  "PRE-APPROVED SECURITIZATION TRANSACTION" means a
securitization transaction to be entered into by the Borrower or its
Subsidiaries and one or more Unrestricted Subsidiaries with respect to
Receivables; PROVIDED, HOWEVER, that all documentation providing for such
securitization arrangements shall be in form and substance reasonably acceptable
to the Administrative Agent, the obligations thereunder shall be non-recourse to
the Borrower or its Subsidiaries and the aggregate outstanding amount thereof
shall not exceed $35,000,000.

                  "PRE-APPROVED STATION SALE" means any Asset Sale in respect of
the Borrower's broadcasting stations in each of (a) WJPX-TV, San Juan, Puerto
Rico, (b) WKPV-TV, Ponce, Puerto Rico (c) WJWN-TV, San Sebastian, Puerto Rico,
(d) KPXO(TV), Kaneohe, Hawaii,(e) WPXB (TV), Merrimack, New Hampshire, (f)
W34CP, East Orange, New Jersey, (g) WPXU-LP, Amityville, New York, (h) WPXO(TV),
Christiansted, St. Croix, U.S. Virgin Islands, (i) KBPX-LP, Houston, Texas, (j)
WBPX-LP, West Palm Beach, Florida, (k) W33BZ, Dennis, Maine and (l) WIPX-LP,
Indianapolis, Indiana.

                  "PRE-APPROVED TRANSACTION" means any Pre-Approved
Securitization Transaction, any Pre-Approved Station Sale or any sale and
leaseback transaction permitted by SECTION 8.6.

                  "PREFERRED STOCK" means the 8% Series B Convertible
Exchangeable Preferred Stock, the 13-1/4 Cumulative Junior Exchangeable
Preferred Stock, the 9-3/4% Series A Convertible Preferred Stock and the 12-1/2%
Cumulative Exchangeable Preferred Stock.

                  "PREFERRED STOCK DOCUMENTS" means, in respect of any Preferred
Stock, the certificates of designation and any indentures and exchange
debentures relating to such Preferred Stock as set forth on SCHEDULE III.

                  "PROGRAM" means any television series or other program
produced or distributed for television or cable release (including any
syndicated series or other program regardless of its medium of initial
exploitation), in each case whether recorded on film, videotape, audiotape,
cassette, cartridge, disc or by any other means, method, process or device,
whether now known or hereafter developed.

                  "PROGRAM CONTRACTS" means all contracts for television
broadcast or cable distribution rights of Programs, including, but not limited
to, film, music and related audio rights (other than fees payable by the

                                       20
<PAGE>   27

Borrower to BMI, ASCAP, SECAP and similar organizations for its own accounts)
and syndicated series exhibition rights acquired under license agreements.

                  "PROGRAM DEVELOPMENT EXPENSES" means for any period, the
aggregate cash payments made by the Borrower and/or any of its Subsidiaries
during such period in connection with the development or production of
television programming.

                  "PROGRAM RIGHTS" means any right, whether arising under
Program Contracts or otherwise, to broadcast, sell, distribute, subdistribute,
exhibit, lease, sublease, license, sublicense or otherwise exploit Programs.

                  "PROGRAM RIGHTS COSTS" means the maximum amount which the
Borrower and/or any of its Subsidiaries or its or their co-venturers have
furnished or have contractually committed to furnish (to the extent such
commitments shall be reflected as an asset or liability on the consolidated
balance sheet and the notes thereto of the Borrower) toward the production or
acquisition by the Borrower and/or any of its Subsidiaries or its or their
co-venturers of any Program Rights with respect to any Program.

                  "PROGRAMMING AMORTIZATION EXPENSE" means, for any period,
total amortization expense of the Borrower and/or any of its Subsidiaries for
such period which is directly attributable to Programs, Program Rights or
Program Contracts, determined on a consolidated basis in conformity with GAAP.

                  "PROGRAMMING OBLIGATIONS" means at any date of determination,
all direct or indirect liabilities, contingent or otherwise, with respect to
Program Contracts, Programs or Program Rights (including, without limitation,
all Program Rights Costs) of the Borrower and its Subsidiaries, to the extent
reflected on the consolidated balance sheet and the notes thereto of the
Borrower and its Subsidiaries prepared in conformity with GAAP.

                  "PROGRAMMING RIGHTS PAYMENTS" means, for any period, the
aggregate cash payments made by the Borrower and/or any of its Subsidiaries for
such period in respect of Programming Obligations, determined on a consolidated
basis in conformity with GAAP.

                  "PROJECTIONS" means those financial projections dated June 14,
2001, covering the period from the Fiscal Quarter ended June 30, 2001 through
December 31, 2006, inclusive, delivered to the Lenders by the Borrower.

                  "PROPERTY LOSS EVENT" means any loss of or damage to, or
condemnation of, property of the Borrower or any of its Subsidiaries that
results in the receipt by such Person of proceeds of insurance or condemnation
award in excess of $1,000,000 or any taking of property of the Borrower or any
of its Subsidiaries that results in the receipt by such Person of a compensation
payment in respect thereof in excess of $1,000,000.

                  "RATABLE PORTION" or "RATABLY" means, with respect to any
Lender, (a) with respect to the Revolving Credit Facility, the percentage
obtained by dividing (i) the Revolving Credit Commitment of such Lender by (ii)
the aggregate Revolving Credit Commitments of all Lenders (or, at any time after
the Revolving Credit Termination Date, the percentage obtained by dividing the
aggregate outstanding principal balance of the Revolving Loans owing to such
Lender by the aggregate outstanding principal balance of the Revolving Loans
owing to all Lenders), (b) with respect to the Term A Loan Facility, the
percentage obtained by dividing (i) the Term A Loan Commitment of such Lender by
(ii) the aggregate Term A Loan Commitments of all Lenders (or, at any time after

                                       21
<PAGE>   28

the Closing Date, the percentage obtained by dividing the principal amount of
such Lender's Term A Loans and such Lender's Term A Loan Commitment (if any) by
the aggregate Term A Loans and Term A Loan Commitments (if any) of all Lenders),
(c) with respect to the Term B Loan Facility, the percentage obtained by
dividing (i) the Term B Loan Commitment of such Lender by (ii) the aggregate
Term B Loan Commitments of all Lenders (or, at any time after the Closing Date,
the percentage obtained by dividing the principal amount of such Lender's Term B
Loans by the aggregate Term B Loans of all Lenders) and (d) with respect to all
Loans, the percentage obtained by dividing the aggregate outstanding amount of
all Loans owing to such Lender by the aggregate amount of all Loans owing to all
Lenders.

                  "RECEIVABLES" means amounts due to the Borrower from the sale
of advertising time and/or amounts due to the Borrower from the sale or transfer
of Program Rights.

                  "REGISTER" has the meaning specified in SECTION 11.2(C).

                  "REINVESTMENT DEFERRED AMOUNT" means, with respect to any
Reinvestment Event, the aggregate Net Cash Proceeds received by the Borrower or
any of its Subsidiaries in connection therewith which are not initially applied
to prepay the Loans pursuant to SECTION 2.7 as a result of the delivery of a
Reinvestment Notice.

                  "REINVESTMENT EVENT" means any Asset Sale referred to in
SECTION 2.7(A)(II)(A) or Property Loss Event referred to in SECTION
2.7(A)(II)(B), in respect of which the Borrower has delivered a Reinvestment
Notice.

                  "REINVESTMENT NOTICE" means a written notice executed by a
Responsible Officer of the Borrower stating that no Default or Event of Default
has occurred and is continuing and that the Borrower (directly or indirectly
through one of its Subsidiaries) intends and expects to use all or a specified
portion of the Net Cash Proceeds of an Asset Sale or Property Loss Event to
acquire replacement assets useful in its, or a Subsidiary Guarantor's, Core
Business or effect repairs in the case of a Property Loss Event.

                  "REINVESTMENT PREPAYMENT AMOUNT" means, with respect to any
Reinvestment Event, the Reinvestment Deferred Amount relating thereto less any
amount expended or required to be expended pursuant to a Contractual Obligation
entered into prior to the relevant Reinvestment Prepayment Date to acquire
replacement assets useful in the Borrower's business.

                  "REINVESTMENT PREPAYMENT DATE" means, with respect to any
Reinvestment Event, the earlier of (i) the date occurring 180 days after such
Reinvestment Event and (ii) the date five Business Days after the date on which
the Borrower shall have notified the Administrative Agent of the Borrower's
determination not to acquire replacement assets useful in the Borrower's or a
Subsidiary's business or effect repairs in the case of a Property Loss Event (or
failure to diligently pursue such repairs) with all or any portion of the
relevant Reinvestment Deferred Amount.

                  "RELEASE" means any release, spill, emission, leaking,
pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal,
leaching, or migration into the indoor or outdoor environment (including,
without limitation, the abandonment or disposal of any barrels, containers or
other closed receptacles containing any Hazardous Materials), or into or out of
any Facility, including the movement of any Hazardous Material through the air,
soil, surface water, groundwater or property.

                                       22
<PAGE>   29

                  "REQUIREMENT OF LAW" means, with respect to any Person, the
common law and all federal, state, local and foreign laws, rules and
regulations, orders, judgments, decrees and other legal requirements or
determinations of any Governmental Authority or arbitrator, applicable to or
binding upon such Person or any of its property or to which such Person or any
of its property is subject.

                  "REQUISITE LENDERS" means, collectively, Lenders having more
than fifty percent (50%) of the sum of (a) the aggregate outstanding amount of
the Revolving Credit Commitments or, after the Revolving Credit Termination
Date, the aggregate principal amount of Revolving Loans then outstanding, (b)
the aggregate outstanding amount of the Term A Loan Commitments and, after the
Closing Date, the principal amount of all Term A Loans and Term A Loan
Commitments (if any) then outstanding and (c) the aggregate outstanding amount
of the Term B Loan Commitments and, after the Closing Date, the principal amount
of all Term B Loans then outstanding. A Non-Funding Lender shall not be included
in the calculation of "REQUISITE LENDERS."

                  "REQUISITE REVOLVING CREDIT LENDERS" shall mean Revolving
Credit Lenders having more than fifty percent (50%) of the aggregate outstanding
amount of the Revolving Credit Commitments or, after the Revolving Credit
Termination Date, fifty percent (50%) of the aggregate principal amount of
Revolving Loans then outstanding. A Non-Funding Lender shall not be included in
the calculation of "REQUISITE REVOLVING CREDIT LENDERS."

                  "REQUISITE TERM A LOAN LENDERS" means Term A Loan Lenders
having more than fifty percent (50%) of the aggregate outstanding amount of the
Term A Loan Commitments or, after the Closing Date, fifty percent (50%) of the
principal amount of all Term A Loans and Term A Loan Commitments (if any) then
outstanding.

                  "REQUISITE TERM B LOAN LENDERS" means Term B Loan Lenders
having more than fifty percent (50%) of the aggregate outstanding amount of the
Term B Loan Commitments or, after the Closing Date, fifty percent (50%) of the
principal amount of all Term B Loans then outstanding.

                  "RESPONSIBLE OFFICER" means, with respect to any Person, any
of the principal executive officers of such Person, but in any event, with
respect to financial matters, the chief financial officer, any treasurer or
controller of such Person.

                  "RESTRICTED LICENSE SUBSIDIARY" means Paxson Communications
License Company, LLC.

                  "RESTRICTED PAYMENT" means (a) any dividend or other
distribution, direct or indirect, on account of any Stock or Stock Equivalents
of the Borrower or any of its Subsidiaries now or hereafter outstanding, except
a dividend payable solely in Stock or Stock Equivalents or a dividend or
distribution payable solely to the Borrower and/or one or more Subsidiary
Guarantors, (b) any redemption, retirement, sinking fund or similar payment,
purchase or other acquisition for value, direct or indirect, of any Stock or
Stock Equivalents of the Borrower or any of its Subsidiaries now or hereafter
outstanding other than one payable solely to the Borrower and/or one or more
Subsidiary Guarantors, and (c) any payment or prepayment of principal, premium
(if any), interest, fees (including fees to obtain any waiver or consent in
connection with any Security) or other charges on, or redemption, purchase,
retirement, defeasance, sinking fund or similar payment with respect to, any
Indebtedness of the Borrower or any of its Subsidiaries or any other Loan Party,

                                       23
<PAGE>   30

other than any scheduled redemptions, retirement, purchases or other payments,
in each case to the extent required to be made by the terms of such Indebtedness
after giving effect to any applicable subordination provisions.

                  "REVOLVING CREDIT BORROWING" means Revolving Loans made on the
same day by the Revolving Credit Lenders ratably according to their respective
Revolving Credit Commitments.

                  "REVOLVING CREDIT COMMITMENT" means, with respect to each
Revolving Credit Lender, the commitment of such Lender to make Revolving Loans
and acquire interests in other Revolving Loans in the aggregate principal amount
outstanding not to exceed the amount set forth opposite such Lender's name on
SCHEDULE I under the caption "REVOLVING CREDIT COMMITMENT," as amended to
reflect each Assignment and Acceptance executed by such Lender and as such
amount may be reduced pursuant to this Agreement.

                  "REVOLVING CREDIT FACILITY" means the Revolving Credit
Commitments and the provisions herein related to the Revolving Loans.

                  "REVOLVING CREDIT LENDER" means each Lender having a Revolving
Credit Commitment.

                  "REVOLVING CREDIT NOTE" means a promissory note of the
Borrower payable to the order of any Revolving Credit Lender in a principal
amount equal to the amount of such Lender's Revolving Credit Commitment
evidencing the aggregate Indebtedness of the Borrower which is outstanding to
such Lender resulting from the Revolving Loans from time to time owing to such
Lender.

                  "REVOLVING CREDIT TERMINATION DATE" shall mean the earliest of
(a) the Scheduled Termination Date, (b) the date of termination of the Revolving
Credit Commitments pursuant to SECTION 2.3 and (c) the date on which the
Obligations become due and payable pursuant to SECTION 9.2.

                  "REVOLVING LOAN" has the meaning specified in SECTION 2.1(A).

                  "SCHEDULED TERMINATION DATE" means June 30, 2006.

                  "SECURED OBLIGATIONS" means, in the case of the Borrower, the
Obligations, and, in the case of any other Loan Party, the obligations of such
Loan Party under the Guaranty and the other Loan Documents to which it is a
party.

                  "SECURED PARTIES" means the Lenders, the Administrative Agent
and any other holder of any of the Obligations.

                  "SECURITY" means any Stock, Stock Equivalent, voting trust
certificate, bond, debenture, note or other evidence of Indebtedness, whether
secured, unsecured, convertible or subordinated, or any certificate of interest,
share or participation in, or any temporary or interim certificate for the
purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing, but shall not include any evidence of the Obligations.

                  "SENIOR DEBT" means the aggregate principal amount of Total
Debt of the Borrower LESS the aggregate principal amount of Subordinated
Indebtedness included in Total Debt.

                                       24
<PAGE>   31

                  SENIOR DEBT LEVERAGE RATIO" means, with respect to any period,
the ratio of (a) consolidated Senior Debt of the Borrower and its Subsidiaries
as of the last day of such period to (b) EBITDA for such period.

                  "SOLVENT" means, with respect to any Person, that as of the
date of determination, both (a) (i) the then fair saleable value of the property
of such Person is (x) greater than the total amount of liabilities (including
Guaranty Obligations net of the estimated value of any subrogation or
contribution rights relating thereto) of such Person and (y) greater than the
amount that will be required to pay the probable liabilities of such Person's
then existing debts as they become absolute and matured considering all
financing alternatives, sharing and allocation arrangements and potential asset
sales reasonably available to such Person; (ii) such Person's capital is not
unreasonably small in relation to its business or any contemplated or undertaken
transaction; and (iii) such Person does not intend to incur, or believe or
reasonably should believe that it will incur, debts beyond its ability to pay
such debts as they become due and (b) such Person is solvent within the meaning
given that term and similar terms under applicable laws relating to fraudulent
transfers.

                  "SPECTRUM LICENSE" means any FCC License pursuant to or in
connection with (a) the FCC's upper 700 MHz (746-764 MHz and 776-794 MHz) band
auction or (b) the FCC's lower 700 MHz (698-746 MHz) band auction, PROVIDED
THAT, in each case, the expected use of any such FCC License shall not include
the transmission of a television signal.

                  "SPECTRUM LICENSE SALE" means an Asset Sale in respect of any
Spectrum License.

                  "STATION" means any Owned Television Station and any LMA
Television Station.

                  "STATION APPRAISAL" means an appraisal (in form and substance
reasonably acceptable to the Administrative Agent) of the fair market value of
an Owned Television Station (if sold individually) conducted by an independent
third party appraiser reasonably acceptable to the Administrative Agent, as
updated from time to time pursuant to SECTION 6.4.

                  "STATION VALUE" shall be the aggregate value of all Owned
Television Stations (adjusted to reflect any relevant Asset Sale) as shown in
the most recent Station Appraisal for such Stations (including any Stations
acquired after the Closing Date, PROVIDED that the Borrower has submitted a
Station Appraisal in respect of such Owned Television Station to the
Administrative Agent, but excluding stations the sale of which are Pre-Approved
Station Sales.

                  "STOCK" means shares of capital stock (whether denominated as
common stock or preferred stock), beneficial, partnership or membership
interests, participations or other equivalents (regardless of how designated) of
or in a corporation, partnership, limited liability company or equivalent
entity, whether voting or non-voting.

                  "STOCK EQUIVALENTS" means all Securities convertible into or
exchangeable for Stock and all warrants, options or other rights to purchase or
subscribe for any Stock, whether or not presently convertible, exchangeable or
exercisable.

                  "SUBORDINATED DEBT" means the Indebtedness represented by (a)
the New Senior Subordinated Notes, (b) following exchange for, or conversion of
any Preferred Stock into, Indebtedness, all such Indebtedness and (c) any other

                                       25
<PAGE>   32

Indebtedness of the Borrower or any of its Subsidiaries that is subordinated to
the Obligations of the Borrower under the Loan Documents or the obligations of
any Subsidiary Guarantor under its Guaranty.

                  "SUBORDINATED DEBT DOCUMENTS" means the New Senior
Subordinated Notes Documents and any other indentures or other agreements or
instruments evidencing or governing the terms of the Subordinated Debt.

                  "SUBSIDIARY" means, with respect to any Person, any
corporation, partnership, limited liability company or other business entity of
which an aggregate of 50% or more of the outstanding Voting Stock is, at the
time, directly or indirectly, owned or controlled by such Person and/or one or
more Subsidiaries of such Person; PROVIDED, HOWEVER, that, for the purposes of
this Agreement, each Unrestricted Subsidiary shall be deemed not to be a
Subsidiary of the Borrower EXCEPT where the term "SUBSIDIARY" is used in the
following provisions of this Agreement: (i) the definition of "UNRESTRICTED
SUBSIDIARY" in this SECTION 1.1, (ii) SECTIONS 4.1, 4.3, 4.5, 4.8, 4.9, 4.13,
4.17, 4.18, 4.19; (iii) ARTICLE VI; (iv) SECTIONS 7.2, 7.5, 7.7, 7.8, 7.11; and
(v) SECTIONS 9.1 (E) through (H).

                  "SUBSIDIARY GUARANTOR" means each Subsidiary of the Borrower
party to the Guaranty.

                  "SYNDICATION AGENT" has the meaning specified at the beginning
of this Agreement.

                  "TAX AFFILIATE" means, with respect to any Person, (a) any
Subsidiary of such Person, and (b) any Affiliate of such Person with which such
Person files or is eligible to file consolidated, combined or unitary tax
returns.

                  "TAX RETURN" has the meaning specified in SECTION 4.9.

                  "TAXES" has the meaning specified in SECTION 2.15(A).

                  "TERM A LOAN" has the meaning specified in SECTION 2.1(B).

                  "TERM A LOAN BORROWING" means Term A Loans made on the same
day by the Term A Loan Lenders ratably according to their respective Term A Loan
Commitments.

                  "TERM A LOAN COMMITMENT" means, with respect to each Term A
Loan Lender, the commitment of such Lender to make Term A Loans to the Borrower
in the aggregate principal amount outstanding not to exceed the amount set forth
opposite such Lender's name on SCHEDULE I under the caption "TERM A LOAN
COMMITMENT" as amended to reflect each Assignment and Acceptance executed by
such Lender and as such amount may be reduced pursuant to this Agreement. Each
Term A Lender's Term A Loan Commitment shall be reduced by the amount of Term A
Loans made by such Lenders.

                  "TERM A LOAN COMMITMENT TERMINATION DATE" shall mean the
earliest of (a) the third anniversary of the Closing Date, (b) the date of
termination of the Term A Loan Commitments pursuant to SECTION 2.3 and (c) the
date on which the Obligations become due and payable pursuant to SECTION 9.2.

                  "TERM A LOAN FACILITY" means the Term A Loan Commitments and
the provisions herein related to the Term A Loans.

                                       26
<PAGE>   33

                  "TERM A LOAN LENDER" means each Lender having a Term A Loan
Commitment.

                  "TERM A LOAN MATURITY DATE" means December 31, 2005.

                  "TERM A LOAN NOTE" means a promissory note of the Borrower
payable to the order of any Term A Loan Lender in a principal amount equal to
the amount of such Lender's Term A Loan Commitment evidencing the Indebtedness
of the Borrower which is outstanding to such Lender resulting from the Term A
Loan owing from time to time to such Lender.

                  "TERM B LOAN" has the meaning specified in SECTION 2.1(C).

                  "TERM B LOAN BORROWING" means Term B Loans made on the same
day by the Term B Loan Lenders ratably according to their respective Term B Loan
Commitments.

                  "TERM B LOAN COMMITMENT" means, with respect to each Term B
Loan Lender, the commitment of such Lender to make Term B Loans to the Borrower
in the aggregate principal amount outstanding not to exceed the amount set forth
opposite such Lender's name on SCHEDULE I under the caption "TERM B LOAN
COMMITMENT" as amended to reflect each Assignment and Acceptance executed by
such Lender and as such amount may be reduced pursuant to this Agreement. The
Term B Loan Commitment shall be reduced to zero after giving effect to the
making of the Term B Loans on the Closing Date.

                  "TERM B LOAN FACILITY" means the Term B Loan Commitments and
the provisions herein related to the Term B Loans.

                  "TERM B LOAN LENDER" means each Lender having a Term B Loan
Commitment.

                  "TERM B LOAN MATURITY DATE" means June 30, 2006.

                  "TERM B LOAN NOTE" means a promissory note of the Borrower
payable to the order of any Term B Loan Lender in a principal amount equal to
the amount of such Lender's Term B Loan Commitment evidencing the Indebtedness
of the Borrower which is outstanding to such Lender resulting from the Term B
Loan owing from time to time to such Lender.

                  "13-1/4% CUMULATIVE JUNIOR EXCHANGEABLE PREFERRED STOCK" means
the junior exchangeable preferred stock of the Borrower designated the 13-1/4%
Cumulative Junior Exchangeable Preferred Stock, issued by the Borrower pursuant
to a Certificate of Designation dated July 30, 1998 pursuant to, and with such
rights, restrictions, privileges and preferences as set forth in such
Certificate of Designation.

                  "TITLE IV PLAN" means a pension plan, other than a
Multiemployer Plan, which is covered by Title IV of ERISA to which the Borrower
any of its Subsidiaries or any ERISA Affiliate has any obligation or liability
(contingent or otherwise).

                  "TOTAL DEBT" of any Person means the aggregate amount of all
Indebtedness of such Person other than indebtedness in respect of zero coupon
Subordinated Debt (or other Subordinated Debt providing for no cash interest
payments prior to the Final Maturity Date), the proceeds of which are used to
refinance, or which arises from an amendment (providing for no cash interest
payments on such debt prior to the Final Maturity Date) to the terms of, the
Borrower's 12-1/2% Cumulative Exchangeable Preferred Stock in accordance with
the terms of this Agreement.

                                       27
<PAGE>   34

                  "12% JUNIOR PREFERRED STOCK" means the junior cumulative
compounding redeemable preferred stock of the Borrower issued pursuant to a
Certificate of Designation dated December 22, 1994.

                  "12-1/2% CUMULATIVE EXCHANGEABLE PREFERRED STOCK" means the
exchangeable preferred stock of the Borrower designated the 12-1/2% Cumulative
Exchangeable Preferred Stock, issued by the Borrower pursuant to, and with such
rights, restrictions, privileges and preferences as set forth in a Certificate
of Designation dated September 30, 1996.

                  "UNFUNDED PENSION LIABILITY" means, with respect to the
Borrower at any time, the sum of (a) the amount, if any, by which the present
value of all accrued benefits under each Title IV Plan (other than any Title IV
Plan subject to Section 4063 of ERISA) exceeds the fair market value of all
assets of such Title IV Plan allocable to such benefits in accordance with Title
IV of ERISA, as determined as of the most recent valuation date for such Title
IV Plan using the actuarial assumptions in effect under such Title IV Plan, and
(b) the aggregate amount of withdrawal liability that could be assessed under
Section 4063 with respect to each Title IV Plan subject to such SECTION 8.3(E),
separately calculated for each such Title IV Plan as of its most recent
valuation date and (c) for a period of five years following a transaction
reasonably likely to be covered by Section 4069 of ERISA, the liabilities
(whether or not accrued) that could be avoided by the Borrower, any of its
Subsidiaries or any ERISA Affiliate as a result of such transaction.

                  "UNRESTRICTED SUBSIDIARY" means any corporation, partnership
or other entity which, but for the operation of this definition, would be a
Subsidiary of the Borrower, (a) identified as an Unrestricted Subsidiary on
SCHEDULE 4.3 or (b) (i) created, invested in or acquired by the Borrower or any
Subsidiary of the Borrower after April 28, 1998, other than pursuant to a
Permitted Acquisition and (ii) designated by a resolution of the board of
directors of the Borrower as an Unrestricted Subsidiary and such designation and
the basis for such designation are provided in writing to the Administrative
Agent; PROVIDED, HOWEVER, that (x) if such Subsidiary is a partnership, such
Subsidiary may be an Unrestricted Subsidiary only if neither the Borrower nor a
Subsidiary of the Borrower is a general partner of such Subsidiary and (y) no
Subsidiary Guarantor shall be designated a Unrestricted Subsidiary.

                  "UNUSED COMMITMENT FEE" has the meaning specified in SECTION
2.11(A).

                  "U.S. GOVERNMENT OBLIGATIONS" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States (including any agency or instrumentality thereof) for the payment
of which the full faith and credit of the United States is pledged and which are
not callable or redeemable at the issuer's option.

                  "VOTING STOCK" means Stock of any Person having ordinary power
to vote in the election of members of the board of directors, managers, trustees
or other controlling Persons, of such Person (irrespective of whether, at the
time, Stock of any other class or classes of such entity shall have or might
have voting power by reason of the happening of any contingency).

                  "WITHDRAWAL LIABILITY" means, with respect to the Borrower at
any time, the aggregate liability incurred (whether or not assessed) with
respect to all Multiemployer Plans pursuant to Section 4201 of ERISA or for
increases in contributions required to be made pursuant to Section 4243 of
ERISA.

                                       28
<PAGE>   35

                  SECTION 1.2. COMPUTATION OF TIME PERIODS. In this Agreement,
in the computation of periods of time from a specified date to a later specified
date, the word "FROM" means "FROM AND INCLUDING" and the words "TO" and "until"
each mean "TO BUT EXCLUDING" and the word "THROUGH" means "TO AND INCLUDING."

                  SECTION 1.3. ACCOUNTING TERMS AND PRINCIPLES.

                  (a) Except as set forth below, all accounting terms not
specifically defined herein shall be construed in conformity with GAAP and all
accounting determinations required to be made pursuant hereto shall, unless
expressly otherwise provided herein, be made in conformity with GAAP.

                  (b) If any change in the accounting principles used in the
preparation of the most recent Financial Statements referred to in SECTION 6.1
is hereafter required or permitted by the rules, regulations, pronouncements and
opinions of the Financial Accounting Standards Board or the American Institute
of Certified Public Accountants (or any successors thereto) and such change is
adopted by the Borrower with the agreement of its independent public accountants
and results in a change in any of the calculations required by ARTICLE V or
ARTICLE VIII had such accounting change not occurred, the parties hereto agree
to enter into negotiations in order to amend such provisions so as to equitably
reflect such change with the desired result that the criteria for evaluating
compliance with such covenants by the Borrower shall be the same after such
change as if such change had not been made; PROVIDED, HOWEVER, that no change in
GAAP that would affect a calculation that measures compliance with any covenant
contained in ARTICLE V or ARTICLE VIII shall be given effect until such
provisions are amended to reflect such changes in GAAP.

                  SECTION 1.4. CERTAIN TERMS.

                  (a) The words "HEREIN," "HEREOF" and "HEREUNDER" and similar
words refer to this Agreement as a whole, and not to any particular Article,
Section, subsection or clause in, this Agreement.

                  (b) References in this Agreement to an Exhibit, Schedule,
Article, Section, subsection or clause refer to the appropriate Exhibit or
Schedule to, or Article, Section, subsection or clause in this Agreement.

                  (c) Each agreement, instrument and other document defined in
this ARTICLE I shall include all appendices, exhibits and schedules thereto. If
the prior written consent of the Requisite Lenders is required hereunder for an
amendment, restatement, supplement or other modification to any such agreement,
instrument or other document and such consent is obtained (or if such consent is
not required), references in this Agreement to such agreement, instrument or
other document shall be to such agreement as so amended, restated, supplemented
or modified.

                  (d) References in this Agreement to any statute shall be to
such statute as amended or modified and in effect at the time any such reference
is operative.

                  (e) The term "INCLUDING" when used in any Loan Document means
"INCLUDING WITHOUT LIMITATION" except when used in the computation of time
periods.

                  (f) The terms "LENDER" and "ADMINISTRATIVE AGENT" include
their respective successors.

                                       29
<PAGE>   36

                  (g) Upon the appointment of any successor Administrative Agent
pursuant to SECTION 10.6, references to Citicorp in SECTION 10.3 and to Citibank
in the definition of Base Rate, shall be deemed to refer to the financial
institution then acting as the Administrative Agent or one of its Affiliates if
it so designates.

                                   ARTICLE II

                                 THE FACILITIES

                  SECTION 2.1. THE COMMITMENTS.

                  (a) REVOLVING CREDIT COMMITMENTS. On the terms and subject to
the conditions contained in this Agreement, each Revolving Credit Lender
severally agrees to make loans (each a "REVOLVING LOAN") to the Borrower from
time to time on any Business Day during the period from the date hereof until
the Revolving Credit Termination Date in an aggregate amount not to exceed at
any time outstanding for all such loans by such Lender such Lender's Revolving
Credit Commitment; PROVIDED, HOWEVER, that at no time shall any Lender be
obligated to make a Revolving Loan in excess of such Lender's Ratable Portion of
the Available Credit. Within the limits of each Lender's Revolving Credit
Commitment, amounts of Revolving Loans repaid may be reborrowed under this
SECTION 2.1(A).

                  (b) TERM A LOAN COMMITMENTS. On the terms and subject to the
conditions contained in this Agreement, each Term A Loan Lender severally agrees
to make loans (each a "TERM A LOAN") to the Borrower from time to time on any
Business Day during the period from the date hereof until the Term A Loan
Commitment Termination Date in an aggregate amount not to exceed at any time
outstanding for all such loans by such Lender such Lender's Term A Loan
Commitment; PROVIDED, HOWEVER, that at no time shall any Lender be obligated to
make a Term A Loan in excess of such Lender's Ratable Portion of the Term A Loan
Commitments outstanding at such time. Amounts of Term A Loans repaid and prepaid
may not be reborrowed.

                  (c) TERM B LOAN COMMITMENTS. On the terms and subject to the
conditions contained in this Agreement, each Term B Loan Lender severally agrees
to make a loan (each a "TERM B LOAN") to the Borrower on the Closing Date, in an
amount not to exceed such Lender's Term B Loan Commitment. Amounts of Term B
Loans repaid and prepaid may not be reborrowed

                  SECTION 2.2. BORROWING PROCEDURES.

                  (a) Each Revolving Credit Borrowing and each Term A Loan
Borrowing shall be made on notice given by the Borrower to the Administrative
Agent not later than 11:00 A.M. (New York City time) (i) one Business Day, in
the case of a Borrowing of Base Rate Loans and (ii) three Business Days, in the
case of a Borrowing of Eurodollar Rate Loans, prior to the date of the proposed
Borrowing. Each such notice shall be in substantially the form of EXHIBIT C (a
"NOTICE OF BORROWING"), specifying (A) whether such Borrowing is a Revolving
Credit Borrowing or a Term A Loan Borrowing, (B) the date of such proposed
Borrowing, (C) the aggregate amount of such proposed Borrowing, (D) whether any
portion of the proposed Borrowing will be of Base Rate Loans or Eurodollar Rate
Loans and (E) the initial Interest Period or Periods for any such Eurodollar
Rate Loans. The Revolving Loans or, as the case may be, Term A Loans shall be
made as Base Rate Loans unless (subject to SECTION 2.12) the Notice of Borrowing
specifies that all or a portion thereof shall be Eurodollar Rate Loans. Each

                                       30
<PAGE>   37

Revolving Credit Borrowing and Term A Loan Borrowing shall be in an aggregate
amount of not less than $1,000,000 or an integral multiple of $1,000,000 in
excess thereof. The Borrower may not request more than four Borrowings per month
under the Term A Loan Facility pursuant to this SECTION 2.2.

                  (b) The Term B Loan Borrowing shall be made upon receipt of a
Notice of Borrowing given by the Borrower to the Administrative Agent not later
than 11:00 A.M. (New York City time) one Business Day prior to the Closing Date.
The Notice of Borrowing shall specify (i) the Closing Date and (ii) the
aggregate amount of such proposed Term B Loan Borrowing. The Term B Loans shall
be made initially as Base Rate Loans.

                  (c) The Administrative Agent shall give to each Lender prompt
notice of the Administrative Agent's receipt of a Notice of Borrowing and, if
Eurodollar Rate Loans are properly requested in such Notice of Borrowing, the
applicable interest rate determined pursuant to SECTION 2.13(A). Each Lender
shall, before 11:00 A.M. (New York City time) on the date of the proposed
Borrowing, make available to the Administrative Agent at its address referred to
in SECTION 11.8, in immediately available funds, such Lender's Ratable Portion
of such proposed Borrowing. After the Administrative Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in SECTIONS
3.1 and 3.2, the Administrative Agent will make such funds available to the
Borrower.

                  (d) Unless the Administrative Agent shall have received notice
from a Lender prior to the date of any proposed Borrowing that such Lender will
not make available to the Administrative Agent such Lender's Ratable Portion of
such Borrowing, the Administrative Agent may assume that such Lender has made
such Ratable Portion available to the Administrative Agent on the date of such
Borrowing in accordance with this SECTION 2.2 and the Administrative Agent may,
in reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Lender shall not have so
made such Ratable Portion available to the Administrative Agent, such Lender and
the Borrower severally agree to repay to the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to the Borrower until the date such
amount is repaid to the Administrative Agent, at (i) in the case of the
Borrower, the interest rate applicable at the time to the Loans comprising such
Borrowing and (ii) in the case of such Lender, the Federal Funds Rate for the
first Business Day and thereafter at the interest rate applicable at the time to
the Loans comprising such Borrowing. If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount so repaid shall
constitute such Lender's Loan as part of such Borrowing for purposes of this
Agreement. If the Borrower shall repay to the Administrative Agent such
corresponding amount, such payment shall not relieve such Lender of any
obligation it may have hereunder to the Borrower.

                  (e) The failure of any Lender to make the Loan or any payment
required by it on the date specified (a "NON-FUNDING LENDER"), shall not relieve
any other Lender of its obligations to make such Loan or payment on such date
but no such other Lender shall be responsible for the failure of any Non-Funding
Lender to make a Loan or payment required under this Agreement.

                  SECTION 2.3. REDUCTION AND TERMINATION OF THE REVOLVING CREDIT
COMMITMENTS AND TERM A LOAN COMMITMENTS.

                  (a) The Borrower may, upon at least three Business Days' prior
notice to the Administrative Agent, terminate in whole or reduce in part ratably
the unused portions of (i) the respective Revolving Credit Commitments of the

                                       31
<PAGE>   38

Revolving Credit Lenders or (ii) the respective Term a Loan Commitments of the
Term A Lenders; PROVIDED, HOWEVER, that each partial reduction shall be in the
aggregate amount of not less than $3,000,000 or an integral multiple of
$1,000,000 in excess thereof.

                  (b) The Revolving Credit Commitments shall be reduced on each
date on which a prepayment of Revolving Loans is made pursuant to SECTION 2.7(A)
or would be required to be made had the outstanding Revolving Loans equaled the
Revolving Credit Commitments then in effect, in the amount of such prepayment
(or deemed prepayment) (and the Revolving Credit Commitment of each Lender shall
be reduced by its applicable Ratable Portion of such amount).

                  (c) The Term A Loan Commitments shall be reduced on each date
on which a prepayment of the Term A Loans would be required to be made pursuant
to SECTION 2.7(A) had the Term A Loan Facility been fully drawn, in the amount
of such deemed prepayment which is in excess of the Term A Loan then outstanding
(and the Term A Loan Commitment of each Term A Lender shall be reduced by its
applicable Ratable Portion of such amount).

                  (d) If, on the second anniversary of the Closing Date, the
aggregate Term A Loan Commitments of the Term A Lenders shall exceed
$15,000,000, then on such second anniversary, the aggregate Term A Loan
Commitments shall be permanently reduced to $15,000,000 (and the Term A Loan
Commitment of each Term A Lender shall be reduced to its Ratable Portion of such
reduced amount). On the third anniversary of the Closing Date, any remaining
Term Loan A Commitments will be reduced to zero.

                  SECTION 2.4. REPAYMENT OF LOANS.

                  (a) The Borrower promises to repay the entire unpaid principal
amount of the Revolving Loans on the Scheduled Termination Date.

                  (b) The Borrower promises to repay the Term A Loans at the
dates and in the amounts set forth below:
<TABLE>
<CAPTION>

         --------------------------- -----------------------------------------------------------------
                    DATE                                  AMOUNT OF TERM A LOANS
         --------------------------- -----------------------------------------------------------------
<S>                                               <C>
         September 30, 2003                       0.25% of Term A Loans then outstanding
         --------------------------- -----------------------------------------------------------------
         December 31, 2003                        0.25% of Term A Loans then outstanding
         --------------------------- -----------------------------------------------------------------
         March 31, 2004                           0.25% of Term A Loans then outstanding
         --------------------------- -----------------------------------------------------------------
         June 30, 2004                            0.25% of Term A Loans then outstanding
         --------------------------- -----------------------------------------------------------------
         September 30, 2004                 0.25% of Term A Loans outstanding on June 30, 2004
         --------------------------- -----------------------------------------------------------------
         December 31, 2004                  0.25% of Term A Loans outstanding on June 30, 2004
         --------------------------- -----------------------------------------------------------------
         March 31, 2005                     0.25% of Term A Loans outstanding on June 30, 2004
         --------------------------- -----------------------------------------------------------------
         June 30, 2005                      0.25% of Term A Loans outstanding on June 30, 2004
         --------------------------- -----------------------------------------------------------------
         September 30, 2005                 49.5% of Term A Loans outstanding on June 30, 2004
         --------------------------- -----------------------------------------------------------------
         December 31, 2005                  49.5% of Term A Loans outstanding on June 30, 2004;
         --------------------------- -----------------------------------------------------------------
</TABLE>

PROVIDED, HOWEVER, that the Borrower shall repay the entire unpaid principal
amount of the Term A Loans on the Term A Loan Maturity Date.

                  (c) The Borrower promises to repay the Term B Loans at the
dates and in the amounts set forth below:

                                       32
<PAGE>   39

<TABLE>
<CAPTION>

         --------------------------- -----------------------------------------------------------------
                    DATE                                  AMOUNT OF TERM B LOANS
         --------------------------- -----------------------------------------------------------------
<S>                                                              <C>
         September 30, 2001                                      $712,500
         --------------------------- -----------------------------------------------------------------
         December 31, 2001                                       $712,500
         --------------------------- -----------------------------------------------------------------
         March 31, 2002                                          $712,500
         --------------------------- -----------------------------------------------------------------
         June 30, 2002                                           $712,500
         --------------------------- -----------------------------------------------------------------
         September 30, 2002                                      $712,500
         --------------------------- -----------------------------------------------------------------
         December 31, 2002                                       $712,500
         --------------------------- -----------------------------------------------------------------
         March 31, 2003                                          $712,500
         --------------------------- -----------------------------------------------------------------
         June 30, 2003                                           $712,500
         --------------------------- -----------------------------------------------------------------
         September 30, 2003                                      $712,500
         --------------------------- -----------------------------------------------------------------
         December 31, 2003                                       $712,500
         --------------------------- -----------------------------------------------------------------
         March 31, 2004                                          $712,500
         --------------------------- -----------------------------------------------------------------
         June 30, 2004                                           $712,500
         --------------------------- -----------------------------------------------------------------
         September 30, 2004                                      $712,500
         --------------------------- -----------------------------------------------------------------
         December 31, 2004                                       $712,500
         --------------------------- -----------------------------------------------------------------
         March 31, 2005                                          $712,500
         --------------------------- -----------------------------------------------------------------
         June 30, 2005                                           $712,500
         --------------------------- -----------------------------------------------------------------
         September 30, 2005                                      $712,500
         --------------------------- -----------------------------------------------------------------
         December 31, 2005                                       $712,500
         --------------------------- -----------------------------------------------------------------
         March 31, 2006                                        $136,087,500
         --------------------------- -----------------------------------------------------------------
         June 30, 2006                                        $136,087,500;
         --------------------------- -----------------------------------------------------------------

</TABLE>

PROVIDED, HOWEVER, that the Borrower shall repay the entire unpaid principal
amount of the Term B Loans on the Term B Loan Maturity Date. All repayments in
respect of the Term B Loan shall be applied first to repay the Loan Sub-Portion
in full and thereafter to repay the remaining Term B Loans.

                  SECTION 2.5. EVIDENCE OF DEBT.

                  (a) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing Indebtedness of the Borrower to such
Lender resulting from each Loan of such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.

                  (b) The Administrative Agent shall maintain accounts in
accordance with its usual practice in which it will record (i) the amount of
each Loan made and, if a Eurodollar Rate Loan, the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable by the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder from the Borrower and each Lender's share
thereof, if applicable.

                  (c) The entries made in the accounts maintained pursuant to
CLAUSES (A) and (B) of this SECTION 2.5 shall, to the extent permitted by
applicable law, be PRIMA FACIE evidence of the existence and amounts of the
obligations recorded therein; PROVIDED, HOWEVER, that the failure of any Lender
or the Administrative Agent to maintain such accounts or any error therein shall
not in any manner affect the obligations of the Borrower to repay the Loans in
accordance with their terms.

                                       33
<PAGE>   40

                  (d) Notwithstanding any other provision of the Agreement, in
the event that any Lender requests that the Borrower execute and deliver a
promissory note or notes payable to such Lender in order to evidence the
Indebtedness owing to such Lender by the Borrower hereunder, the Borrower will
promptly execute and deliver a Note or Notes to such Lender evidencing any
Revolving Loans, Term A Loans and Term B Loans, as the case may be, of such
Lender, substantially in the forms of EXHIBIT B-1, B-2 or B-3, respectively.

                  SECTION 2.6. OPTIONAL PREPAYMENTS.

                  (a) REVOLVING LOANS. The Borrower may, upon at least three
Business Days' prior notice to the Administrative Agent, stating the proposed
date and aggregate principal amount of the prepayment, prepay the outstanding
principal amount of the Revolving Loans in whole or in part; PROVIDED, HOWEVER,
that if any prepayment of any Eurodollar Rate Loan is made by the Borrower other
than on the last day of an Interest Period for such Loan, the Borrower shall
also pay any amounts owing pursuant to SECTION 2.12(E); PROVIDED, FURTHER, that
each partial prepayment shall be in an aggregate principal amount not less than
$2,000,000 or integral multiples of $1,000,000 in excess thereof. Upon the
giving of such notice of prepayment, the principal amount of Revolving Loans
specified to be prepaid shall become due and payable on the date specified for
such prepayment.

                  (b) TERM A LOANS and TERM B LOANS. The Borrower may, upon at
least three Business Days' prior notice to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, prepay the
outstanding principal amount of (x) the Loan Sub-Portion and, following
repayment of the Loan Sub-Portion in full, (y) the remaining Term B Loans and,
thereafter, (z) the Term A Loans, in each case together with accrued interest to
the date of such prepayment on the principal amount prepaid; PROVIDED, HOWEVER,
that if any prepayment of any Eurodollar Rate Loan is made by the Borrower other
than on the last day of an Interest Period for such Loan, the Borrower shall
also pay any amounts owing pursuant to SECTION 2.12(E); PROVIDED, FURTHER, that
each partial prepayment shall be in an aggregate amount not less than $2,000,000
or integral multiples of $1,000,000 in excess thereof and that any such partial
prepayment shall be applied to reduce ratably each remaining installments of
such outstanding principal amount of the applicable Loans. Upon the giving of
such notice of prepayment, the principal amount of the applicable Loans
specified to be prepaid shall become due and payable on the date specified for
such prepayment.

                  (c) The Borrower shall have no right to prepay the principal
amount of any Loan other than as provided in this SECTION 2.6.

                  SECTION 2.7. MANDATORY PREPAYMENTS.

                  (a) Upon receipt by the Borrower or any of its Subsidiaries of
Net Cash Proceeds arising (i) from Spectrum License Sales, the Borrower shall,
within one Business Day prepay the Loans in amounts equal to 100% of the first
$75,000,000 of such aggregate Net Cash Proceeds and 50% of such aggregate Net
Cash Proceeds in excess of $150,000,000; (ii) from (A) any other Asset Sale
(other than (x) a Pre-Approved Transaction and (y) the first $25,000,000 of
aggregate Net Cash Proceeds from all Asset Sales (other than Spectrum License
Sales and Pre-Approved Transactions)), (B) any Property Loss Event or (C) Debt
Issuance, the Borrower shall within one Business Day prepay the Loans in an
amount equal to 100% of such Net Cash Proceeds, and (iii) from an Equity
Issuance (other than (x) issuance by the Borrower of its Stock pursuant to
employee option plans, (y) common Stock of the Borrower issued pursuant to the
exercise of warrants issued in connection with the issuance of the 9-3/4%
Preferred Stock and (z) the first $50,000,000 of aggregate Net Cash Proceeds of
other Equity Issuances), the Borrower shall immediately prepay the Loans in an
amount equal to 75% (or, if, at any time following delivery of a Compliance

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<PAGE>   41

Certificate for the Fiscal Quarter ended March 31, 2004, the Leverage Ratio for
the twelve-month period ending on the last day of the Fiscal Quarter most
recently ended is less than 5.5 to 1 (determined on a PRO FORMA basis after
giving effect to the application of such proceeds), then 25%) of such Net Cash
Proceeds; PROVIDED, HOWEVER, that in the case of any Net Cash Proceeds arising
from a Reinvestment Event, the Borrower shall prepay the Loans in an amount
equal to the Reinvestment Prepayment Amount applicable to such Reinvestment
Event, if any, on the Reinvestment Prepayment Date with respect to such
Reinvestment Event and, pending application of such proceeds as specified in the
Reinvestment Notice, shall pay the same to the Administrative Agent to be held
in a Cash Collateral Account. Any such mandatory prepayment shall be applied in
accordance with SECTION 2.7(C) below; PROVIDED FURTHER, HOWEVER, that no
Reinvestment Event shall be permitted to occur in respect of any Net Cash
Proceeds which are otherwise required (pursuant to the terms of any Subordinated
Debt Document or Preferred Stock Document) to be applied in prepayment of the
Loans, or where the failure to apply such Net Cash Proceeds in prepayment of the
Loans would result in an obligation to redeem or repurchase any Subordinated
Debt or Preferred Stock.

                  (b) The Borrower shall prepay the Loans within 90 days of the
last day of each Fiscal Year, in an amount equal to 50% of Excess Cash Flow for
such Fiscal Year. Any such mandatory prepayment shall be applied in accordance
with SECTION 2.7(C) below.

                  (c) Any prepayments made by the Borrower required to be
applied in accordance with this SECTION 2.7(C) shall be applied as follows:
FIRST, to prepay the outstanding principal balance of the Loan Sub-Portion until
the Loan Sub-Portion has been prepaid in full, SECOND, to prepay the remaining
principal balance of the Term B Loans outstanding (after such prepayment of the
Loan Sub-Portion), until such Term B Loans shall have been prepaid in full;
THIRD, to prepay the principal balance of the Term A Loans outstanding, until
such Term A Loans shall have been prepaid in full; and THEREAFTER, to repay the
outstanding principal balance of the Revolving Loans until such Revolving Loans
shall have been paid in full. All prepayments of the Term B Loans and Term A
Loans made pursuant to this SECTION 2.7 shall be applied to reduce ratably each
remaining installments of such outstanding principal amounts of such Loans. All
repayments of Revolving Loans required to be made pursuant to this SECTION 2.7
shall result in a permanent reduction of the Revolving Credit Commitments to the
extent provided in SECTION 2.3(B).

                  (d) If at any time, the aggregate principal amount of
Revolving Loans exceed the aggregate Revolving Credit Commitments at such time,
the Borrower shall forthwith prepay the Revolving Loans then outstanding in an
amount equal to such excess.

                  (e) If for a period of five consecutive Business Days or
longer either (i) (unless the Leverage Ratio for the twelve-month period ending
on the last day of the most recently ended Fiscal Quarter, as shown in a
Compliance Certificate in respect thereof, is less than 5.0 to 1)) the sum of
the aggregate principal outstanding amount of the Term A Loans and Term B Loans
and the Term A Loan Commitments and the Revolving Credit Commitments then in
effect exceeds 33% of the aggregate Station Value at such time; or (ii) the
principal outstanding amount of the Loan Sub-Portion exceeds 33% of the portion
of Station Value which is solely attributable to the value of FCC Licenses held
by the Restricted License Subsidiary, then the Borrower shall immediately prepay
the Loans to the extent necessary to comply with each such ratio. Any such
mandatory prepayment shall be applied in accordance with SECTION 2.7(C) above.

                                       35
<PAGE>   42

                  SECTION 2.8. INTEREST.

                  (a) RATE OF INTEREST. All Loans and the outstanding amount of
all other Obligations shall bear interest, in the case of Loans, on the unpaid
principal amount thereof from the date such Loans are made and, in the case of
such other Obligations, from the date such other Obligations are due and payable
until, in all cases, paid in full, except as otherwise provided in SECTION
2.8(C), as follows:

                  (i) if a Base Rate Loan or such other Obligation, at a rate
         per annum equal to the sum of (A) the Base Rate as in effect from time
         to time PLUS (B) the Applicable Margin; and

                  (ii) if a Eurodollar Rate Loan, at a rate per annum equal to
         the sum of (A) the Eurodollar Rate determined for the applicable
         Interest Period PLUS (B) the Applicable Margin in effect from time to
         time during such Eurodollar Interest Period.

                  (b) INTEREST PAYMENTS. (i) Interest accrued on each Base Rate
Loan shall be payable in arrears (A) on the first day of each calendar month,
commencing on the first such day following the making of such Base Rate Loan,
(B) in the case of Base Rate Loans that are Term A Loans and Term B Loans, upon
the payment or prepayment thereof in full or in part, and (C) if not previously
paid in full, at maturity (whether by acceleration or otherwise) of such Base
Rate Loan; (ii) interest accrued on each Eurodollar Rate Loan shall be payable
in arrears (A) on the last day of each Interest Period applicable to such Loan
and if such Interest Period has a duration of more than three months, on each
day during such Interest Period which occurs every three months from the first
day of such Interest Period, (B) upon the payment or prepayment thereof in full
or in part, and (C) if not previously paid in full, at maturity (whether by
acceleration or otherwise) of such Eurodollar Rate Loan; and (iii) interest
accrued on the amount of all other Obligations shall be payable on demand from
and after the time such Obligation becomes due and payable (whether by
acceleration or otherwise).

                  (c) DEFAULT INTEREST. Notwithstanding the rates of interest
specified in SECTION 2.8(A) or elsewhere herein, effective immediately upon the
occurrence of an Event of Default, and for as long thereafter as such Event of
Default shall be continuing, the principal balance of all Loans and the amount
of all other Obligations shall bear interest at a rate which is two percent per
annum in excess of the rate of interest applicable to such Obligations from time
to time.

                  SECTION 2.9. CONVERSION/CONTINUATION OPTION.

                  (a) The Borrower may elect (i) at any time to convert Base
Rate Loans or any portion thereof to Eurodollar Rate Loans, or (ii) at the end
of any applicable Interest Period, to convert Eurodollar Rate Loans or any
portion thereof into Base Rate Loans or to continue such Eurodollar Rate Loans
or any portion thereof for an additional Interest Period; PROVIDED, HOWEVER,
that the aggregate amount of the Eurodollar Loans for each Interest Period must
be in the amount of $2,000,000 or an integral multiple of $1,000,000 in excess
thereof. Each conversion or continuation shall be allocated among the Loans of
each Lender in accordance with its Ratable Portion. Each such election shall be
in substantially the form of EXHIBIT D hereto (a "NOTICE OF CONVERSION OR
CONTINUATION") and shall be made by giving the Administrative Agent at least
three Business Days' prior written notice specifying (A) the amount and type of
Loans being converted or continued, (B) in the case of a conversion to or a
continuation of Eurodollar Rate Loans, the applicable Interest Period, and (C)
in the case of a conversion, the date of conversion (which date shall be a

                                       36
<PAGE>   43

Business Day and, if a conversion from Eurodollar Rate Loans, shall also be the
last day of the applicable Interest Period).

                  (b) The Administrative Agent shall promptly notify each Lender
of its receipt of a Notice of Conversion or Continuation and of the options
selected therein. Notwithstanding the foregoing, no conversion in whole or in
part of Base Rate Loans to Eurodollar Rate Loans, and no continuation in whole
or in part of Eurodollar Rate Loans upon the expiration of any applicable
Interest Period, shall be permitted at any time at which (i) a Default or an
Event of Default shall have occurred and be continuing or (ii) the continuation
of, or conversion into, would violate any of the provisions of SECTION 2.12. If,
within the time period required under the terms of this SECTION 2.9, the
Administrative Agent does not receive a Notice of Conversion or Continuation
from the Borrower containing a permitted election to continue any Eurodollar
Rate Loans for an additional Interest Period or to convert any such Loans, then,
upon the expiration of the applicable Interest Period, such Loans will be
automatically converted to Base Rate Loans. Each Notice of Conversion or
Continuation shall be irrevocable.

                  SECTION 2.10. FEES.

                  (a) UNUSED COMMITMENT FEE. The Borrower agrees to pay (i) to
each Revolving Credit Lender a commitment fee on the daily average amount by
which the Revolving Credit Commitment of such Lender exceeds such Lender's
Ratable Portion of the Revolving Loans and (ii) to each Term A Loan Lender a
commitment fee on the average amount of the unused Term A Loan Commitment of
such Lender (in each case, an "UNUSED COMMITMENT FEE") accruing from the date
hereof until, respectively, the Revolving Credit Termination Date and the Term A
Loan Commitment Termination Date, at the Applicable Unused Commitment Fee Rate,
payable in arrears (i) on the last day of each calendar quarter, commencing on
the first such day following the Closing Date and (ii) on the Revolving Credit
Termination Date or Term A Loan Commitment Termination Date (as the case may
be).

                  (b) ADDITIONAL FEES. The Borrower has agreed to pay to
additional fees, the amount and dates of payment of which are embodied in the
Fee Letter to the other Persons which are party to the Fee Letter.

                  SECTION 2.11. PAYMENTS AND COMPUTATIONS.

                  (a) The Borrower shall make each payment hereunder (including
fees and expenses) not later than 11:00 A.M. (New York City time) on the day
when due, in Dollars, to the Administrative Agent at its address referred to in
SECTION 11.8 in immediately available funds without set-off or counterclaim. The
Administrative Agent will promptly thereafter cause to be distributed
immediately available funds relating to the payment of principal or interest or
fees to the Lenders, in accordance with the application of payments set forth in
CLAUSES (E) and (F) of this SECTION 2.11, as applicable, for the account of
their respective Applicable Lending Offices; PROVIDED, HOWEVER, that amounts
payable pursuant to SECTION 2.12(C), 2.12(E), 2.13 or 2.14 shall be paid only to
the affected Lender or Lenders. Payments received by the Administrative Agent
after 11:00 A.M. (New York City time) shall be deemed to be received on the next
Business Day.

                  (b) All computations of interest based on CLAUSE (A) of the
definition of Base Rate shall be made by the Administrative Agent on the basis
of a year of 365 or 366 days, as the case may be, and all other computations of
interest and of fees shall be made by the Administrative Agent on the basis of a
year of 360 days, in each case for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such

                                       37
<PAGE>   44

interest and fees are payable. Each determination by the Administrative Agent of
an interest rate hereunder shall be conclusive and binding for all purposes,
absent manifest error.

                  (c) Whenever any payment hereunder shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fees, as the case may be;
PROVIDED, HOWEVER, that if such extension would cause payment of interest on or
principal of any Eurodollar Rate Loan to be made in the next calendar month,
such payment shall be made on the immediately preceding Business Day. All
repayments of any Loans shall be applied first to repay such Loans outstanding
as Base Rate Loans and then to repay such Loans outstanding as Eurodollar Rate
Loans with those Eurodollar Rate Loans which have earlier expiring Eurodollar
Interest Periods being repaid prior to those which have later expiring
Eurodollar Interest Periods.

                  (d) Unless the Administrative Agent shall have received notice
from the Borrower to the Lenders prior to the date on which any payment is due
hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date, and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the
extent the Borrower shall not have made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon at the Federal Funds Rate, for the first Business Day, and,
thereafter, at the rate applicable to Base Rate Loans, for each day from the
date such amount is distributed to such Lender until the date such Lender repays
such amount to the Administrative Agent.

                  (e) Subject to the provisions of CLAUSE (F) of this SECTION
2.11 and (except as otherwise provided in SECTION 2.7), all payments and any
other amounts received by the Administrative Agent from or for the benefit of
the Borrower shall be applied FIRST, to pay principal of and interest on any
portion of the Loans which the Administrative Agent may have advanced pursuant
to the express provisions of this Agreement on behalf of any Lender, for which
the Administrative Agent has not then been reimbursed by such Lender or the
Borrower; SECOND, to pay all other Obligations then due and payable; and THIRD,
as the Borrower so designates. Payments in respect of Revolving Loans received
by the Administrative Agent shall be distributed to each Revolving Credit Lender
in accordance with such Lender's Ratable Portion of the Revolving Credit
Commitments; payments in respect of the Term A Loans and Term B Loans received
by the Administrative Agent shall be distributed to each Term A Loan Lender and
Term B Lender in accordance with such Lender's Ratable Portion of such Loans;
and all payments of fees and all other payments in respect of any other
Obligation shall be allocated among such of the Lenders as are entitled thereto,
and, if to the Lenders, in proportion to their respective Ratable Portions.

                  (f) After the occurrence and during the continuance of an
Event of Default, the Borrower hereby irrevocably waives the right to direct the
application of any and all payments in respect of the Obligations and any
proceeds of Collateral, and agrees that the Administrative Agent may, and shall
upon either (A) the written direction of the Requisite Revolving Credit Lenders
and the Requisite Term A Loan Lenders and the Requisite Term B Loan Lenders or
(B) the acceleration of the Obligations pursuant to SECTION 9.2, apply all
payments in respect of any Obligations and all funds on deposit in the Cash
Collateral Accounts and all other proceeds of Collateral in the following order:

                                       38
<PAGE>   45

                  (i) FIRST, to pay interest on and then principal of any
         portion of the Revolving Loans which the Administrative Agent may have
         advanced on behalf of any Lender for which the Administrative Agent has
         not then been reimbursed by such Lender or the Borrower;

                  (ii) SECOND, to pay Obligations in respect of any expense
         reimbursement or indemnity then due to the Administrative Agent;

                  (iii) THIRD, to pay Obligations in respect of any expense
         reimbursement or indemnity then due to the Lenders;

                  (iv) FOURTH, to pay Obligations in respect of any fees then
         due to the Administrative Agent and the Lenders;

                  (v) FIFTH, to pay interest then due and payable in respect of
         the Loans;

                  (vi) SIXTH, to pay or prepay principal amounts on FIRST the
         Loan Sub-Portion and THEN the other Loans ratably to the principal
         amount of such other Loans;

                  (vii) SEVENTH, to pay Obligations owing with respect to
         Hedging Contracts; and

                  (viii) EIGHTH, to the ratable payment of all other
         Obligations;

PROVIDED, HOWEVER, that:

                                    (A) if sufficient funds are not available to
                  fund all payments to be made in respect of any of the
                  Obligations described in any of the foregoing clauses FIRST
                  through SEVENTH, the available funds being applied with
                  respect to any such Obligation (unless otherwise specified in
                  such clause) shall be allocated to the payment of such
                  Obligations ratably, based on the proportion of the
                  Administrative Agent's and each Lender's interest in the
                  aggregate outstanding Obligations described in such clauses;
                  and

                                    (B) The order of priority set forth in
                  clauses FIRST through EIGHTH of this SECTION 2.11(F) may at
                  any time and from time to time be changed by the agreement of
                  the Requisite Revolving Lenders, the Requisite Term A Loan
                  Lenders and the Requisite Term B Loan Lenders without
                  necessity of notice to or consent of or approval by the
                  Borrower, any Secured Party that is not a Lender or any other
                  Person. The order of priority set forth in clauses FIRST
                  through FOURTH of this SECTION 2.11(F) may be changed only
                  with the prior written consent of the Administrative Agent in
                  addition to the Requisite Revolving Lenders, the Requisite
                  Term A Loan Lenders and the Requisite Term B Loan Lenders.

                  (g) The Borrower hereby authorizes each Lender and each
Affiliate of each Lender, if and to the extent payment owed to such Lender by
the Borrower is not made when due hereunder, to charge from time to time against
any or all of the Borrower's accounts with such Lender or Affiliate any amount
so due.

                                       39
<PAGE>   46

                  SECTION 2.12. SPECIAL PROVISIONS GOVERNING EURODOLLAR RATE
LOANS.

                  (a) DETERMINATION OF INTEREST RATE. The Eurodollar Rate for
each Interest Period for Eurodollar Rate Loans shall be determined by the
Administrative Agent pursuant to the procedures set forth in the definition of
"EURODOLLAR RATE." The Administrative Agent's determination shall be presumed to
be correct, absent manifest error, and shall be binding on the Borrower.

                  (b) INTEREST RATE UNASCERTAINABLE, INADEQUATE OR UNFAIR. In
the event that: (i) the Administrative Agent determines that adequate and fair
means do not exist for ascertaining the applicable interest rates by reference
to which the Eurodollar Rate then being determined is to be fixed; or (ii) the
Requisite Lenders notify the Administrative Agent that the Eurodollar Rate for
any Interest Period will not adequately reflect the cost to the Lenders of
making or maintaining such Loans for such Interest Period, the Administrative
Agent shall forthwith so notify the Borrower and the Lenders, whereupon each
Eurodollar Loan will automatically, on the last day of the current Interest
Period for such Loan, convert into a Base Rate Loan and the obligations of the
Lenders to make Eurodollar Rate Loans or to convert Base Rate Loans into
Eurodollar Rate Loans shall be suspended until the Administrative Agent shall
notify the Borrower that the Requisite Lenders have determined that the
circumstances causing such suspension no longer exist.

                  (c) INCREASED COSTS. If at any time any Lender shall determine
that the introduction of or any change in or in the interpretation of any law,
treaty or governmental rule, regulation or order (other than any change by way
of imposition or increase of reserve requirements included in determining the
Eurodollar Rate) or the compliance by such Lender with any guideline, request or
directive from any central bank or other Governmental Authority (whether or not
having the force of law), there shall be any increase in the cost to such Lender
of agreeing to make or making, funding or maintaining any Eurodollar Rate Loans,
then the Borrower shall from time to time, upon demand by such Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender additional amounts sufficient to compensate
such Lender for such increased cost. A certificate as to the amount of such
increased cost, submitted to the Borrower and the Administrative Agent by such
Lender, shall be conclusive and binding for all purposes, absent manifest error.

                  (d) ILLEGALITY. Notwithstanding any other provision of this
Agreement, if any Lender determines that the introduction of or any change in or
in the interpretation of any law, treaty or governmental rule, regulation or
order after the date of this Agreement shall make it unlawful, or any central
bank or other Governmental Authority shall assert that it is unlawful, for any
Lender to make Eurodollar Rate Loans or to continue to fund or maintain
Eurodollar Rate Loans, then, on notice thereof and demand therefor by such
Lender to the Borrower through the Administrative Agent, (i) the obligation of
such Lender to make or to continue Eurodollar Rate Loans and to convert Base
Rate Loans into Eurodollar Rate Loans shall be suspended, and each such Lender
shall make a Base Rate Loan as part of any requested Borrowing of Eurodollar
Rate Loans and (ii) if the affected Eurodollar Rate Loans are then outstanding,
the Borrower shall immediately convert each such Loan into a Base Rate Loan. If
at any time after a Lender gives notice under this SECTION 2.12(D) such Lender
determines that it may lawfully make Eurodollar Rate Loans, such Lender shall
promptly give notice of that determination to the Borrower and the
Administrative Agent, and the Administrative Agent shall promptly transmit the
notice to each other Lender. The Borrower's right to request, and such Lender's
obligation, if any, to make Eurodollar Rate Loans shall thereupon be restored.

                                       40
<PAGE>   47

                  (e) BREAKAGE COSTS. In addition to all amounts required to be
paid by the Borrower pursuant to SECTION 2.8, the Borrower shall compensate each
Lender, upon demand, for all losses, expenses and liabilities (including any
loss or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund or maintain such
Lender's Eurodollar Rate Loans to the Borrower but excluding any loss of the
Applicable Margin on the relevant Loans) which that Lender may sustain (i) if
for any reason a proposed Borrowing, conversion into or continuation of
Eurodollar Rate Loans does not occur on a date specified therefor in a Notice of
Borrowing or a Notice of Conversion or Continuation given by a Borrower or in a
telephonic request by it for borrowing or conversion or continuation or a
successive Interest Period does not commence after notice therefor is given
pursuant to SECTION 2.9, (ii) if for any reason any Eurodollar Rate Loan is
prepaid (including mandatorily pursuant to SECTION 2.7) on a date which is not
the last day of the applicable Interest Period, (iii) as a consequence of a
required conversion of a Eurodollar Rate Loan to a Base Rate Loan as a result of
any of the events indicated in SECTION 2.12(D), or (iv) as a consequence of any
failure by a Borrower to repay Eurodollar Rate Loans when required by the terms
hereof. The Lender making demand for such compensation shall deliver to the
Borrower concurrently with such demand a written statement as to such losses,
expenses and liabilities, and this statement shall be conclusive as to the
amount of compensation due to that Lender, absent manifest error.

                  SECTION 2.13. CAPITAL ADEQUACY. If at any time any Lender
determines that (a) the adoption of or any change in or in the interpretation of
any law, treaty or governmental rule, regulation or order after the date of this
Agreement regarding capital adequacy, (b) compliance with any such law, treaty,
rule, regulation, or order, or (c) compliance with any guideline or request or
directive from any central bank or other Governmental Authority (whether or not
having the force of law) shall have the effect of reducing the rate of return on
such Lender's (or any corporation controlling such Lender's) capital as a
consequence of its obligations hereunder to a level below that which such Lender
or such corporation could have achieved but for such adoption, change,
compliance or interpretation, then, upon demand from time to time by such Lender
(with a copy of such demand to the Administrative Agent), the Borrower shall pay
to the Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender for such reduction. A certificate as to such amounts submitted to the
Borrower and the Administrative Agent by such Lender shall be conclusive and
binding for all purposes absent manifest error.

                  SECTION 2.14. TAXES.

                  (a) Any and all payments by the Borrower under each Loan
Document shall be made free and clear of and without deduction for any and all
present or future taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto, excluding (i) in the case of each
Lender and the Administrative Agent (A) taxes measured by its net income, and
franchise taxes imposed on it, by the jurisdiction (or any political subdivision
thereof) under the laws of which such Lender or the Administrative Agent (as the
case may be) is organized and (B) any United States withholding taxes payable
with respect to payments under the Loan Documents under laws (including any
statute, treaty or regulation) in effect on the Closing Date (or, in the case of
an Eligible Assignee, the date of the Assignment and Acceptance) applicable to
such Lender or the Administrative Agent, as the case may be, but not excluding
any United States withholding payable as a result of any change in such laws
occurring after the Closing Date (or the date of such Assignment and Acceptance)
and (ii) in the case of each Lender, taxes measured by its net income, and
franchise taxes imposed on it, by the jurisdiction in which such Lender's
Applicable Lending Office is located (all such non-excluded taxes, levies,

                                       41
<PAGE>   48

imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as "TAXES"). If any Taxes shall be required by law to be deducted
from or in respect of any sum payable under any Loan Document to any Lender or
the Administrative Agent (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this SECTION 2.14) such Lender or
the Administrative Agent (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions, (iii) the Borrower shall pay the full amount
deducted to the relevant taxing authority or other authority in accordance with
applicable law, and (iv) the Borrower shall deliver to the Administrative Agent
evidence of such payment.

                  (b) In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies of the United States or any political subdivision thereof or
any applicable foreign jurisdiction, and all liabilities with respect thereto,
which arise from any payment made under any Loan Document or from the execution,
delivery or registration of, or otherwise with respect to, any Loan Document
(collectively, "OTHER TAXES").

                  (c) The Borrower will indemnify each Lender and the
Administrative Agent for the full amount of Taxes and Other Taxes (including any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
SECTION 2.14) paid by such Lender or the Administrative Agent (as the case may
be) and any liability (including for penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted. This indemnification shall be made within 30 days
from the date such Lender or the Administrative Agent (as the case may be) makes
written demand therefor.

                  (d) Within 30 days after the date of any payment of Taxes or
Other Taxes, the Borrower will furnish to the Administrative Agent, at its
address referred to in SECTION 11.8, the original or a certified copy of a
receipt evidencing payment thereof.

                  (e) Without prejudice to the survival of any other agreement
of the Borrower hereunder, the agreements and obligations of the Borrower
contained in this SECTION 2.14 shall survive the payment in full of the
Obligations.

                  (f) Prior to the Closing Date in the case of each Non-U.S.
Lender that is a signatory hereto, and on the date of the Assignment and
Acceptance pursuant to which it becomes a Lender in the case of each other
Non-U.S. Lender and from time to time thereafter if requested by the Borrower or
the Administrative Agent, each Non-U.S. Lender that is entitled at such time to
an exemption from United States withholding tax, or that is subject to such tax
at a reduced rate under an applicable tax treaty, shall provide the
Administrative Agent and the Borrower with two completed copies of: (i) Form
W-8ECI (claiming exemption from withholding because the income is effectively
connected with a U.S. trade or business) (or any successor form); (ii) Form
W-8BEN (claiming exemption from, or a reduction of, withholding tax under an
income tax treaty) (or any successor form); (iii) in the case of a Non-U.S.
Lender claiming exemption under Sections 871(h) or 881(c) of the Code, a Form
W-8BEN (claiming exemption from withholding under the portfolio interest
exemption)(or successor form); or (iv) or other applicable form, certificate or
document prescribed by the IRS certifying as to such Non-U.S. Lender's
entitlement to such exemption from United States withholding tax or reduced rate
with respect to all payments to be made to such Non-U.S. Lender under the Loan
Documents. Unless the Borrower and the Administrative Agent have received forms
or other documents satisfactory to them indicating that payments under any Loan

                                       42
<PAGE>   49

Document to or for a Non-U.S. Lender are not subject to United States
withholding tax or are subject to such tax at a rate reduced by an applicable
tax treaty, the Borrower or the Administrative Agent shall withhold taxes from
such payments at the applicable statutory rate.

                  (g) Any Lender claiming any additional amounts payable
pursuant to this SECTION 2.14 shall use its reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions) to change the
jurisdiction of its Applicable Lending Office if the making of such a change
would avoid the need for, or reduce the amount of, any such additional amounts
which would be payable or may thereafter accrue and would not, in the sole
determination of such Lender, be otherwise disadvantageous to such Lender.

                  SECTION 2.15. SUBSTITUTION OF LENDERS. In the event that (a)
(i) any Lender makes a claim under SECTION 2.12 (C) or SECTION 2.13, or (ii) it
becomes illegal for any Lender to continue to fund or make any Eurodollar Rate
Loan and such Lender notifies the Borrower pursuant to SECTION 2.12(D), or (iii)
the Borrower is required to make any payment pursuant to SECTION 2.14 that is
attributable to any Lender, or (iv) any Lender is a Non-Funding Lender, (b) in
the case of clause (a)(i) above, as a consequence of increased costs in respect
of which such claim is made, the effective rate of interest payable to such
Lender under this Agreement with respect to its Loans materially exceeds the
effective average annual rate of interest payable to the Requisite Lenders under
this Agreement and (c) Lenders holding at least 75% of the Commitments are not
subject to such increased costs or illegality, payment or proceedings (any such
Lender, an "AFFECTED LENDER"), the Borrower may substitute another financial
institution for such Affected Lender hereunder, upon reasonable prior written
notice (which written notice must be given within 90 days following the
occurrence of any of the events described in clauses (a)(i), (ii), (iii) or
(iv)) by the Borrower to the Administrative Agent and the Affected Lender that
the Borrower intends to make such substitution, which substitute financial
institution must be an Eligible Assignee and, if not a Lender, reasonably
acceptable to the Administrative Agent; PROVIDED, HOWEVER, that if more than one
Lender claims increased costs, illegality or right to payment arising from the
same act or condition and such claims are received by the Borrower within 30
days of each other then the Borrower may substitute (with one or more substitute
Lenders) all, but not (except to the extent the Borrower has already substituted
one of such Affected Lenders before the Borrower's receipt of the other Affected
Lenders' claim) less than all, Lenders making such claims. In the event that the
written notice was properly issued under this SECTION 2.15, the Affected Lender
shall sell and the substitute financial institution or other entity shall
purchase, pursuant to an Assignment and Acceptance, all rights and claims of
such Affected Lender under the Loan Documents and the substitute financial
institution or other entity shall assume and the Affected Lender shall be
relieved of its Commitments and all other prior unperformed obligations of the
Affected Lender under the Loan Documents (other than in respect of any damages
(other than exemplary or punitive damages, to the extent permitted by applicable
law) in respect of any such unperformed obligations). Upon the effectiveness of
such sale, purchase and assumption (which, in any event shall be conditioned
upon the payment in full by the Borrower to the Affected Lender in cash of all
fees, unreimbursed costs and expenses and indemnities accrued and unpaid through
such effective date), the substitute financial institution or other entity shall
become a "LENDER" hereunder for all purposes of this Agreement having a
Revolving Credit Commitment and Term A Loan Commitment (if applicable) in the
amount of such Affected Lender's Revolving Credit Commitment and Term A Loan
Commitment assumed by it and such Revolving Credit Commitment and Term A Loan
Commitment (if applicable) of the Affected Lender shall be terminated, provided
that all indemnities under the Loan Documents shall continue in favor of such
Affected Lender.

                                       43
<PAGE>   50

                                  ARTICLE III

                               CONDITIONS TO LOANS

                  SECTION 3.1. CONDITIONS PRECEDENT TO INITIAL LOANS. The
obligation of each Lender to make the Loans requested to be made by it on the
Closing Date is subject to the satisfaction of all of the following conditions
precedent:

                  (a) CERTAIN DOCUMENTS. The Administrative Agent shall have
received on the Closing Date each of the following, each dated the Closing Date
unless otherwise indicated or agreed to by the Administrative Agent, in form and
substance satisfactory to the Administrative Agent:

                  (i) this Agreement, duly executed and delivered by the
         Borrower and, for the account of each Lender requesting the same, a
         Note or Notes of the Borrower conforming to the requirements set forth
         herein;

                  (ii) the Guaranty, duly executed by each Subsidiary Guarantor;

                  (iii) the Pledge and Security Agreement, duly executed by the
         Borrower and each Subsidiary Guarantor, together with:

                           (A) evidence satisfactory to the Administrative Agent
                  that (upon filing in the appropriate filing offices referred
                  to in CLAUSE (X) below) the Administrative Agent (for the
                  benefit of the Secured Parties) has a valid and perfected
                  first priority security interest in the Collateral, including
                  (x) such documents duly executed by each Loan Party as the
                  Administrative Agent may request with respect to the
                  perfection of its security interests in the Collateral
                  (including financing statements under the UCC, patent,
                  trademark and copyright security agreements and other
                  applicable documents under the laws of any jurisdiction with
                  respect to the perfection of Liens created by the Pledge and
                  Security Agreement), (y) copies of UCC search reports as of a
                  recent date listing all effective financing statements that
                  name any Loan Party as debtor, together with copies of such
                  financing statements, none of which shall cover the Collateral
                  except for those which shall be terminated on the Closing
                  Date) and (z) evidence of termination and release of any
                  existing Liens which are not Permitted Liens (including signed
                  UCC-3 termination statements, releases and pay-off letters in
                  respect of the Existing Credit Facility and the GE Capital
                  Facility);

                           (B) share certificates representing all certificated
                  Pledged Stock being pledged pursuant to the Pledge and
                  Security Agreement and stock powers for such share
                  certificates executed in blank;

                           (C) all instruments representing Pledged Notes (in
                  form and substance reasonably satisfactory to the
                  Administrative Agent) being pledged pursuant to the Pledge and
                  Security Agreement duly endorsed in favor of the
                  Administrative Agent or in blank together with a summary
                  (certified by a Responsible Officer) of outstanding
                  intercompany loan balances as of the Closing Date;

                                       44
<PAGE>   51

                           (D) Control Account Letters from (x) all securities
                  intermediaries with respect to all securities accounts and
                  securities entitlements of the Borrower and such Subsidiary
                  Guarantor, and (y) all futures commission agents and clearing
                  houses with respect to all commodities contracts and
                  commodities accounts held by the Borrower and each Subsidiary
                  Guarantor;

                  (iv) a favorable opinion of (A) Holland & Knight, counsel to
         the Loan Parties, in substantially the form of EXHIBIT E, addressed to
         the Administrative Agent and the Lenders and addressing such other
         matters as any Lender through the Administrative Agent may reasonably
         request and (B) counsel to the Administrative Agent as to the
         enforceability of this Agreement and the other Loan Documents to be
         executed on the Closing Date;

                  (v) a copy of the NBC Investment Agreement certified as being
         complete and correct by a Responsible Officer of the Borrower;

                  (vi) a copy of the articles or certificate of incorporation
         (or equivalent organizational documents) of each Loan Party, certified
         as of a recent date by the Secretary of State of the state of
         incorporation of such Loan Party, together with certificates of such
         official attesting to the good standing of each such Loan Party;

                  (vii) a certificate of the Secretary or an Assistant Secretary
         of each Loan Party certifying (A) the names and true signatures of each
         officer of such Loan Party who has been authorized to execute and
         deliver any Loan Document or other document required hereunder to be
         executed and delivered by or on behalf of such Loan Party, (B) the
         by-laws (or equivalent Constituent Document) of such Loan Party as in
         effect on the date of such certification, (C) the resolutions of such
         Loan Party's board of directors (or equivalent governing body)
         approving and authorizing the execution, delivery and performance of
         this Agreement and the other Loan Documents to which it is a party and
         (D) that there have been no changes in the certificate of incorporation
         (or equivalent Constituent Document) of such Loan Party from the
         certificate of incorporation (or equivalent Constituent Document)
         delivered pursuant to the immediately preceding clause;

                  (viii) a certificate of the Chief Financial Officer of the
         Borrower, stating that (A) the Borrower is Solvent after giving effect
         to the initial Loans, the application of the proceeds thereof in
         accordance with SECTION 7.10 and the payment of all estimated legal,
         accounting and other fees related hereto and thereto, (B) as of the
         Closing Date, the Borrower is able to incur at least the aggregate
         amount of Loans borrowed on the Closing Date without causing an event
         of default or event or condition that, after notice or the lapse of
         time, or both, would become an event of default under the Subordinated
         Debt Documents or the Preferred Stock Documents;

                  (ix) a certificate of a Responsible Officer to the effect that
         (A) the condition set forth in SECTION 3.2(B) has been satisfied and
         (B) no litigation not listed on SCHEDULE 4.8 shall have been commenced
         against any Loan Party or any of its Subsidiaries which, if adversely
         determined, could be reasonably expected to result in a Material
         Adverse Change;

                  (x) a recent Station Appraisal in respect of all Stations
         owned by the Loan Parties, including evidence that the Restricted

                                       45
<PAGE>   52

         License Subsidiary holds FCC Licenses having an aggregate appraised
         value (if sold individually) of at least $400,000,000;

                  (xi) evidence satisfactory to the Administrative Agent that
         the insurance policies required by SECTION 7.6 and any Collateral
         Document are in full force and effect together with, in respect of
         those insurance policies maintained with respect to the properties of
         the Borrower and its Subsidiaries, (A) endorsements naming the
         Collateral Agent, on behalf of the Secured Parties, as an additional
         insured and/or loss payee and (B) a provision that cancellation,
         material addition in amount or material change in coverage shall not be
         effective until 30 days after written notice to the Collateral Agent;
         and

                  (xii) such other certificates, documents, agreements and
         information respecting any Loan Party as any Lender through the
         Administrative Agent may reasonably request.

                  (b) FEE AND EXPENSES PAID. There shall have been paid to the
Administrative Agent, for the account of the Administrative Agent and the
Lenders, as applicable, all fees due and payable on or before the Closing Date
(including all such fees described in the Fee Letter), and all expenses due and
payable on or before the Closing Date.

                  (c) NEW SENIOR SUBORDINATED NOTES. (i) The Administrative
Agent shall be satisfied with the terms and conditions of the New Senior
Subordinated Debt Documents (including terms and conditions relating to the
interest rate, fees, amortization, maturity, subordination, covenants, events of
defaults and remedies), it being understood that the terms and conditions set
forth in the offering memorandum relating thereto are satisfactory in all
respects to the Administrative Agent, and (ii) the Borrower shall have received
$200,000,000, less underwriting discounts and offering expenses, in net proceeds
from issuance of the New Senior Subordinated Notes.

                  (d) CONSENTS, ETC. Each of the Borrower and its Subsidiaries
shall have received all consents and authorizations required pursuant to any
material Contractual Obligation with any other Person and shall have obtained
all consents and authorizations of, and effected all notices to and filings
with, the FCC and any other Governmental Authority, in each case, as may be
necessary to allow each of the Borrower and its Subsidiaries lawfully (A) to
execute, deliver and perform, in all material respects, their respective
obligations hereunder, the Loan Documents and the New Senior Subordinated Debt
Documents to which each of them, respectively, is, or shall be, a party and each
other agreement or instrument to be executed and delivered by each of them,
respectively, pursuant thereto or in connection therewith, (B) to create and
perfect the Liens on the Collateral to be owned by each of them in the manner
and for the purpose contemplated by the Loan Documents, and (C) to issue the New
Senior Subordinated Notes.

                  (e) SENIOR SECURED DEBT RATING. The Borrower's long term
senior secured debt rating shall be at least Ba3 as rated by Moody's Investor
Service, Inc. AND at least BB- as rated by Standard & Poor's Rating Service (a
division of the McGraw-Hill Companies, Inc.); PROVIDED, that if rated at either
such minimum level then such rating shall not be on "NEGATIVE WATCH".

                  SECTION 3.2. CONDITIONS PRECEDENT TO EACH LOAN. The obligation
of each Lender on any date (including the Closing Date) to make any Loan on any
date (including the Closing Date) is subject to the satisfaction of all of the
following conditions precedent:

                                       46
<PAGE>   53

                  (a) REQUEST FOR BORROWING. With respect to any Loan, the
Administrative Agent shall have received a duly executed Notice of Borrowing.

                  (b) REPRESENTATIONS AND WARRANTIES; NO DEFAULTS. The following
statements shall be true on the date of such Loan or issuance, both before and
after giving effect thereto and, in the case of such Loan, to the application of
the proceeds therefrom:

                  (i) The representations and warranties set forth in ARTICLE IV
         and in the other Loan Documents shall be true and correct on and as of
         the Closing Date and shall be true and correct in all material respects
         on and as of any such date after the Closing Date with the same effect
         as though made on and as of such date, except to the extent such
         representations and warranties expressly relate to an earlier date;

                  (ii) No Default or Event of Default has occurred and is
         continuing;

                  (iii) Such Borrowing (x) is permitted pursuant to the terms of
         the Preferred Stock Documents and the Subordinated Debt Documents and
         (y) (if made under the Term A Loan Facility) when aggregated with the
         amount of all Term A Loans outstanding PLUS the outstanding amount of
         all Capital Lease Obligations and purchase money Indebtedness of the
         Borrower and its Subsidiaries shall not exceed five per cent. of the
         consolidated total assets of the Borrower and its Subsidiaries at such
         time.

                  (c) NO LEGAL IMPEDIMENTS. The making of the Loans on such date
does not violate any Requirement of Law or conflict with the provisions of the
Indenture of any of the Preferred Stock Documents on the date of or immediately
following such Loan or issuance and is not enjoined, temporarily, preliminarily
or permanently.

Each submission by the Borrower to the Administrative Agent of a Notice of
Borrowing and the acceptance by the Borrower of the proceeds of each Loan
requested therein shall be deemed to constitute a representation and warranty by
the Borrower as to the matters specified in SECTION 3.2(B) on the date of the
making of such Loan.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  To induce the Lenders and the Administrative Agent to enter
into this Agreement, the Borrower represents and warrants to the Lenders and the
Administrative Agent that, on and as of the Closing Date, after giving effect to
the making of the Loans and other financial accommodations on the Closing Date
and on and as of each date as required by SECTION 3.2(B)(I):

                  SECTION 4.1. CORPORATE EXISTENCE; COMPLIANCE WITH LAW. Each of
the Borrower and its Subsidiaries (a) is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation; (b) is
duly qualified as a foreign entity and in good standing under the laws of each
jurisdiction where such qualification is necessary, except where the failure to
be so qualified or in good standing could not be reasonably expected to result
in a Material Adverse Change; (c) has all requisite power and authority and the
legal right to own, pledge, mortgage and operate its properties, to lease the
property it operates under lease and to conduct its business as now or currently
proposed to be conducted; (d) is in compliance with its Constituent Documents;
(e) is in compliance with all applicable Requirements of Law except where the
failure to be in compliance could not in the aggregate be reasonably expected to
result in a Material Adverse Change; and (f) has all necessary licenses,

                                       47
<PAGE>   54

permits, consents or approvals from or by, has made all necessary filings with,
and has given all necessary notices to, each Governmental Authority having
jurisdiction, to the extent required for such ownership, operation and conduct,
except for licenses, permits, consents, approvals or filings which can be
obtained or made by the taking of ministerial action to secure the grant or
transfer thereof or the failure to obtain or make could not in the aggregate be
reasonably expected to result in a Material Adverse Change.

                  SECTION 4.2. CORPORATE POWER; AUTHORIZATION; ENFORCEABLE
OBLIGATIONS.

                  (a) The execution, delivery and performance by each Loan Party
of the Loan Documents to which it is a party and the consummation of the
transactions contemplated thereby:

                  (i) are within such Loan Party's corporate, limited liability
         company, partnership or other powers;

                  (ii) have been duly authorized by all necessary corporate or
         partnership action, including the consent of shareholders where
         required;

                  (iii) do not and will not (A) violate any Loan Party's or any
         of its Subsidiaries' respective Constituent Documents, (B) violate any
         other Requirement of Law applicable to any Loan Party (including
         Regulations T, U and X of the Federal Reserve Board), or any order or
         decree of any Governmental Authority or arbitrator applicable to any
         Loan Party, (C) conflict with or result in the breach of, or constitute
         a default under, or result in or permit the termination or acceleration
         of, any provision of any Contractual Obligation of any Loan Party or
         any of its Subsidiaries other than any other conflict, breach of
         default of any Contractual Obligation (other than under any Material
         Agreement) which violations, in the aggregate, could not be reasonably
         expected to result in a Material Adverse Change, or (D) result in the
         creation or imposition of any Lien upon any of the property of any Loan
         Party or any of its Subsidiaries, other than those in favor of the
         Secured Parties pursuant to the Collateral Documents; and

                  (iv) do not require the consent of, authorization by, approval
         of, notice to, or filing or registration with, the FCC or any other
         Governmental Authority or any other Person, other than those listed on
         SCHEDULE 4.2 and which have been or will be, prior to the Closing Date,
         obtained or made, copies of which have been or will be delivered to the
         Administrative Agent pursuant to SECTION 3.1, and each of which on the
         Closing Date will be in full force and effect and, with respect to the
         Collateral, filings required to perfect the Liens created by the
         Collateral Documents.

                  (b) This Agreement has been, and each of the other Loan
Documents will have been upon delivery thereof pursuant to the terms of this
Agreement, duly executed and delivered by each Loan Party party thereto. This
Agreement is, and the other Loan Documents will be, when delivered hereunder,
the legal, valid and binding obligation of each Loan Party party thereto,
enforceable against such Loan Party in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors' rights and remedies generally.

                                       48
<PAGE>   55

                  SECTION 4.3. OWNERSHIP OF SUBSIDIARIES.

                  Set forth on SCHEDULE 4.3 hereto is a complete and accurate
list showing, as of the Closing Date, all Subsidiaries of the Borrower and, as
to each such Subsidiary, the jurisdiction of its incorporation, the number of
shares of each class of Stock authorized (if applicable), the number outstanding
on the Closing Date and the number and percentage of the outstanding shares of
each such class owned (directly or indirectly) by the Borrower and identifying
each Subsidiary Guarantor, each Unrestricted Subsidiary and each Dissolution
Subsidiary. No Stock of any Subsidiary of the Borrower is subject to any
outstanding option, warrant, right of conversion or purchase or any similar
right. All of the outstanding Stock of each Subsidiary of the Borrower owned
(directly or indirectly) by the Borrower has been validly issued, is fully paid
and non-assessable and is owned by the Borrower or a Subsidiary of the Borrower,
free and clear of all Liens (other than the Lien in favor of the Secured Parties
created pursuant to the Pledge and Security Agreement). Neither the Borrower nor
any such Subsidiary is a party to, or has knowledge of, any agreement
restricting the transfer or hypothecation of any Stock of any such Subsidiary,
other than the Loan Documents and certain restrictions on asset sales contained
in the Material Agreements. The Borrower does not own or hold, directly or
indirectly, any Stock of any Person other than such Subsidiaries and Investments
permitted by SECTION 8.3.

                  SECTION 4.4. FCC MATTERS.

                  (a) The Borrower and each of its Subsidiaries has all
requisite power and authority and necessary FCC Licenses required under the
Communications Act to own and operate its properties and to carry on its
businesses as now conducted and as proposed to be conducted.

                  (b) Set forth in SCHEDULE 4.4 is a complete list, as of the
Closing Date, of all FCC Licenses (other than auxiliary service licenses and
receive only earth stations which are not material to the Core Business of the
Borrower and its Subsidiaries) held by the Borrower and its Subsidiaries, and
the expiration date thereof, of the Borrower and each of its Subsidiaries.

                  (c) Neither the Borrower nor any of its Subsidiaries, other
than the License Subsidiaries, directly owns or holds any FCC License.

                  (d) Each Material FCC License which is required for the
operation of the business of the Borrower or any of its Subsidiaries is validly
issued to a License Subsidiary and in full force and effect, and constitutes in
all material respects, all of the authorization from any Communications
Regulatory Authority necessary for the operation of such Person's business in
the same manner as it is presently conducted and as proposed to be conducted.

                  (e) The Loan Parties have taken all material actions and
performed all of their material obligations that are necessary to maintain each
Material FCC License without adverse modification or impairment and no event has
occurred which (i) results in, or after notice or lapse of time or both would
result in, revocation, suspension, materially adverse modification, non-renewal,
impairment of value or termination of or any order of forfeiture with respect
to, any Material FCC License or (ii) materially and adversely affects or in the
future may (so far as the Borrower can now reasonably foresee) materially
adversely affect any of the rights of the Borrower or any Subsidiary thereof
with respect to any Material FCC License.

                  (f) Neither the Borrower nor any of its Subsidiaries is a
party to or has knowledge of any investigation, notice of apparent liability,
violation, forfeiture or other order or complaint issued by or before any court

                                       49
<PAGE>   56

or regulatory body, including the FCC, or of any other proceedings (other than
proceedings relating to the radio or television industries generally) which
could in any manner threaten or adversely affect the validity or continued
effectiveness of the Material FCC Licenses.

                  (g) Neither the Borrower nor any of its Subsidiaries has any
reason to believe (other than in connection with there being no legal assurance
thereof) that any Material FCC License will not be renewed in the ordinary
course.

                  (h) None of the FCC Licenses held by a License Subsidiary
requires that any present stockholder (other than Paxson), director, officer or
employee of the Borrower or any Subsidiary thereof remain a stockholder or
employee of such Person, or that any transfer of control of such Person must be
approved by any Governmental Authority other than as required by the FCC.

                  (i) The Loan Parties have duly filed in a timely manner all
material filings which are required to be filed by the Loan Parties under the
Communications Act and are in all material respects in substantial compliance
with the Communications Act, including, without limitation, the rules and
regulations of the FCC relating to the broadcast of television signals or the
operation of the Stations.

                  (j) The most recent Ownership Report filed by the Borrower is
true, correct and complete in all material respects, and there has been no
change in control of the ownership of the Loan Parties or the FCC Licenses of
the Loan Parties since the most recently filed Ownership Report for any of the
Loan Parties other than as disclosed in writing to the Administrative Agent and
the Lenders.

                  SECTION 4.5. FINANCIAL STATEMENTS.

                  (a) The consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2000 and the related consolidated statements of
income, retained earnings and cash flows of the Borrower and its Subsidiaries
for the fiscal year then ended, certified by Pricewaterhouse Coopers LLP, and
the consolidated balance sheets of the Borrower and its Subsidiaries as at March
31, 2001, and the related consolidated statements of income, retained earnings
and cash flows of the Borrower and its Subsidiaries for the three months then
ended, copies of which have been furnished to each Lender, fairly present,
subject, in the case of said balance sheets as at March 31, 2001 and said
statements of income, retained earnings and cash flows for the three months then
ended, to the absence of footnote disclosure and normal recurring year-end audit
adjustments, the consolidated financial condition of the Borrower and its
Subsidiaries as at such dates and the consolidated results of the operations of
the Borrower and its Subsidiaries for the period ended on such dates, all in
conformity with GAAP.

                  (b) Neither the Borrower nor any of its Subsidiaries has any
material obligation, contingent liability or liability for taxes, long-term
leases or unusual forward or long-term commitment which is not reflected in the
Financial Statements referred to in CLAUSE (A) above or in the notes thereto or
permitted by this Agreement.

                  (c) The Projections have been prepared by the Borrower in
light of the past operations of its business, and reflect projections for the
period beginning on June 30, 2001 and ending on December 31, 2006, on a quarter
by quarter basis though December 31, 2003, and on a year by year basis
throughout the entire period. The Projections, and the projected financial
information most recently provided by the Borrower under SECTION 6.1(E), are
based upon estimates and assumptions stated therein, all of which the Borrower
believes to be reasonable and fair in light of conditions and facts then known

                                       50
<PAGE>   57

to the Borrower when such Projections, or such projected financial information,
were made and, as of the Closing Date, reflect the Borrower's good faith and
reasonable estimates of the future financial performance of the Borrower and its
Subsidiaries and of the other information projected therein for the periods set
forth therein.

                  SECTION 4.6. MATERIAL ADVERSE CHANGE. Since December 31, 2000,
there has been no Material Adverse Change and there have been no events or
developments that in the aggregate could be reasonably expected to result in a
Material Adverse Change.

                  SECTION 4.7. SOLVENCY. Both before and after giving effect to
(a) the Loans to be made or extended on the Closing Date or such other date as
Loans requested hereunder are made or extended, (b) the disbursement of the
proceeds of such Loans pursuant to the instructions of the Borrower, (c) the
issuance of the New Senior Subordinated Notes and the consummation of the other
financing transactions contemplated hereby, (d) the repayment of Indebtedness
contemplated hereunder on the Closing Date and (e) the payment and accrual of
all transaction costs in connection with the foregoing, each Loan Party is
Solvent.

                  SECTION 4.8. LITIGATION. Except as set forth on SCHEDULE 4.8,
there are no pending or, to the knowledge of the Borrower, threatened actions,
investigations or proceedings affecting the Borrower, or any of its Subsidiaries
before any court, Governmental Authority or arbitrator other than those that in
the aggregate could not, if adversely determined, be reasonably expected to
result in a Material Adverse Change. The performance of any action by any Loan
Party required or contemplated by any of the Loan Documents is not restrained or
enjoined by any court, Governmental Authority or arbitrator (either temporarily,
preliminarily or permanently).

                  SECTION 4.9. TAXES.

                  (a) All federal, state, local and foreign income and franchise
and other material tax returns, reports and statements (collectively, the "TAX
RETURNS") required to be filed by the Borrower or any of its Tax Affiliates have
been filed with the appropriate Governmental Authorities in all jurisdictions in
which such Tax Returns are required to be filed, all such Tax Returns are true
and correct in all material respects, and all taxes, charges and other
impositions reflected therein or otherwise due and payable have been paid prior
to the date on which any fine, penalty, interest, late charge or loss may be
added thereto for non-payment thereof except where contested in good faith and
by appropriate proceedings if adequate reserves therefor have been established
on the books of the Borrower or such Tax Affiliate in conformity with GAAP.

                  SECTION 4.10. FULL DISCLOSURE. No representation or warranty
of any Loan Party contained in any Loan Document or the Information Memorandum,
or any other document, certificate or written statement furnished to the Lenders
by or on behalf of any Loan Party for use in connection with the transactions
contemplated by this Agreement (including any Permitted Acquisition), contains
any untrue statement of a material fact or omits to state a material fact (known
to the Borrower in the case of any document not furnished by it) necessary in
order to make the statements contained herein or therein not misleading in light
of the circumstances in which the same were made. There is no fact known (or
which should upon the reasonable exercise of diligence be known) to the Borrower
(other than matters of a general economic nature or relating to the broadcasting
industry or television industry generally) that has resulted or could reasonably

                                       51
<PAGE>   58

be expected to result in a Material Adverse Change and that has not been
disclosed herein or in such other documents, certificates and statements
furnished to the Lenders for use in connection with the transactions
contemplated hereby.

                  SECTION 4.11. MARGIN REGULATIONS. The Borrower is not engaged
in the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulation U of the Federal Reserve Board),
and no proceeds of any Borrowing will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing or carrying
any margin stock.

                  SECTION 4.12. NO BURDENSOME RESTRICTIONS; NO DEFAULTS.

                  (a) Neither the Borrower nor any of its Subsidiaries (i) is a
party to any Contractual Obligation the compliance with which could be
reasonably expected to result in a Material Adverse Change or the performance of
which by any thereof, either unconditionally or upon the happening of an event,
would result in the creation of a Lien (other than a Lien permitted under
SECTION 8.2) on the property or assets of any thereof or (ii) is subject to any
restriction in its Constituent Documents which could be reasonably expected to
result in a Material Adverse Change.

                  (b) Neither the Borrower nor any of its Subsidiaries is in
default under or with respect to any Contractual Obligation owed by it and, to
the knowledge of the Borrower, no other party is in default under or with
respect to any Contractual Obligation owed to any Loan Party or to any
Subsidiary of a Loan Party, other than, in either case, those defaults which in
the aggregate could not reasonably be expected to result in a Material Adverse
Change.

                  (c) No Default or Event of Default has occurred and is
continuing.

                  (d) To the best knowledge of the Borrower, there is no
Requirement of Law applicable to any Loan Party the compliance with which by
such Loan Party could be reasonably expected to result in a Material Adverse
Change.

                  SECTION 4.13. INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING
COMPANY ACT. Neither the Borrower nor any of its Subsidiaries is (a) an
"INVESTMENT COMPANY" or an "AFFILIATED PERSON" of, or "PROMOTER" or "PRINCIPAL
UNDERWRITER" for, an "INVESTMENT COMPANY," as such terms are defined in the
Investment Company Act of 1940, as amended or (b) a "HOLDING COMPANY," or an
"AFFILIATE" or a "HOLDING COMPANY" or a "SUBSIDIARY COMPANY" of a "HOLDING
COMPANY," as each such term is defined and used in the Public Utility Holding
Act of 1935, as amended.

                  SECTION 4.14. USE OF PROCEEDS. The proceeds of the Loans are
being and shall be used (together with the net proceeds of the New Senior
Subordinated Notes) by the Borrower solely as follows: (a) in respect of the
Revolving Facility, to fund Capital Expenditures and for general corporate
purposes; (b) in respect of the Term B Loan Facility, (w) to repay in full all
loans outstanding under, and all other amounts due in respect of, (i) the
Existing Credit Facility and (ii) the GE Capital Facility, (x) to redeem in full
the 12% Junior Preferred Stock, (y) to redeem the 11-5/8% Senior Subordinated
Notes and to pay the call premium thereon and (z) to pay all transaction costs
and expenses incurred in respect of the transactions contemplated hereby; and
(c) in respect of the Term A Loan Facility, solely to finance Capital
Expenditures on or after the Closing Date.

                                       52
<PAGE>   59

                  SECTION 4.15. SURVIVING DEBT. Following the application of the
proceeds of the Loans and the New Senior Subordinated Notes as described in
SECTION 4.14 above, neither the Borrower nor any of its Subsidiaries shall have
outstanding any Indebtedness other than as permitted by SECTION 8.1.

                  SECTION 4.16. INSURANCE. All policies of insurance of any kind
or nature of the Borrower or any of its Subsidiaries, including policies of
life, fire, theft, product liability, public liability, property damage, other
casualty, employee fidelity, workers' compensation and employee health and
welfare insurance, are in full force and effect and are of a nature and provide
such coverage as is sufficient and as is customarily carried by businesses of
the size and character of such Person. SCHEDULE 4.16 sets forth a complete list
of all policies of insurance in effect for the Borrower and its Subsidiaries as
of the Closing Date.

                  SECTION 4.17. LABOR MATTERS. There are no strikes, work
stoppages, slowdowns or lockouts pending or threatened against or involving the
Borrower or any of their respective Subsidiaries, other than those which in the
aggregate could not be reasonably expected to result in a Material Adverse
Change.

                  SECTION 4.18. ERISA.

                  (a) SCHEDULE 4.18 separately identifies as of the date hereof
all Title IV Plans, all Multiemployer Plans and all of the employee benefit
plans within the meaning of Section 3(3) of ERISA to which the Borrower or any
of its Subsidiaries has any obligation or liability, contingent or otherwise.

                  (b) Each employee benefit plan of the Borrower or any of its
Subsidiaries which is intended to qualify under Section 401 of the Code does so
qualify, and any trust created thereunder is exempt from tax under the
provisions of Section 501 of the Code, except where such failures in the
aggregate could not be reasonably expected to result in a Material Adverse
Change.

                  (c) Each Title IV Plan is in compliance in all material
respects with applicable provisions of ERISA, the Code and other Requirements of
Law except for non-compliances that in the aggregate could not be reasonably
expected to result in a Material Adverse Change.

                  (d) There has been no, nor is there reasonably expected to
occur, any ERISA Event which could reasonably be expected to result in a
Material Adverse Change.

                  (e) Except to the extent set forth on SCHEDULE 4.18, none of
the Borrower, any of the Borrower's Subsidiaries or any ERISA Affiliate would
have any Withdrawal Liability as a result of a complete withdrawal as of the
date hereof from any Multiemployer Plan.

                  SECTION 4.19. ENVIRONMENTAL MATTERS.

                  (a) The operations of the Borrower and its Subsidiaries
comply, and for the period within any applicable statute of limitations have
complied, in all material respects with all Environmental Laws;

                  (b) The Borrower and each of its Subsidiaries have obtained
all Permits under Environmental Laws necessary to their respective operations,
and all such Permits are in good standing, and the Borrower and each of its

                                       53
<PAGE>   60

Subsidiaries are in compliance with all material terms and conditions of such
Permits;

                  (c) Neither the Borrower nor any of its Subsidiaries has
received (i) any material notice or claim to the effect that it is or may be
liable to any Person as a result of the Release or threatened Release of any
Hazardous Materials or (ii) any letter or request for information under Section
104 of the Comprehensive Environmental Response, Compensation, and Liability Act
(42 U.S.C. ss. 9604) or comparable state laws, and to the best of the Borrower's
knowledge, none of the operations of the Borrower or any of its Subsidiaries is
the subject of any federal or state investigation evaluating whether any further
investigation or remedial action is needed to respond to a Release or threatened
Release of any Hazardous Material at any property which is owned, leased or
operated by the Borrower or its Subsidiaries;

                  (d) None of the operations of the Borrower or any of its
Subsidiaries is subject to any judicial, administrative, or arbitral proceeding
alleging the violation of or liability under any Environmental Laws which if
adversely determined could reasonably be expected to result in a Material
Adverse Change;

                  (e) The Borrower and each of its Subsidiaries and all of the
property which is owned, leased or operated by them and their operations are not
subject to any outstanding written order or agreement with any governmental
authority or private party relating to (i) any Environmental Laws or (ii) any
Environmental Claims that in each case could reasonably be expected to result in
a Material Adverse Change;

                  (f) To the best knowledge of the Borrower, neither the
Borrower nor any of its Subsidiaries has any contingent liability in connection
with any Release of any Hazardous Materials by the Borrower or any Subsidiaries
of the Borrower that could reasonably be expected to result in a Material
Adverse Change;

                  (g) Neither the Borrower nor any of its Subsidiaries or, to
the best of the Borrower's knowledge, any predecessor of the Borrower or any
Subsidiaries of the Borrower has filed any notice under any Environmental Law
indicating past or present treatment or disposal of Hazardous Materials at any
property which is owned, leased or operated by them, and none of the Borrower's
or any of its Subsidiary's operations involves the generation, transportation,
treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R.
Parts 260-270 or any state equivalent in material violation of any such law;

                  (h) To the best knowledge of each Loan Party, no Hazardous
Material exists on, under or about any property which is owned, leased or
operated by them in a manner that could give rise to an Environmental Claim that
could reasonably be expected to result in a Material Adverse Change, and neither
the Borrower nor any Subsidiary of the Borrower has filed any notice or report
of a Release of any Hazardous Materials that could reasonably be expected to
give rise to an Environmental Claim that could reasonably be expected to result
in a Material Adverse Change;

                  (i) To the best knowledge of each Loan Party, neither the
Borrower nor any Subsidiary of the Borrower (or any of their predecessors) has
disposed of any Hazardous Materials in a manner that could reasonably be
expected to result in a Material Adverse Change;

                  (j) No underground storage tanks or surface impoundments are
on or at any property which is owned, leased or operated by the Borrower or its

                                       54
<PAGE>   61

Subsidiaries, other than those that could not reasonably be expected to give
rise to an Environmental Claim resulting in a Material Adverse Change;

                  (k) No Lien in favor of any Person for (i) any material
liability under Environmental Laws, or (ii) damages arising from or costs
incurred by such Person in response to a Release has been filed or has been
attached to any property owned, leased or operated by the Borrower or its
Subsidiaries; and

                  (l) There is no radio frequency radiation, electromagnetic
field or similar condition of or about any property owned, leased or operated by
the Borrower or its Subsidiaries that could reasonably be expected to result in
a Material Adverse Change.

                  SECTION 4.20. INTELLECTUAL PROPERTY. The Borrower and its
Subsidiaries own or license or otherwise have the right to use all licenses,
permits, patents, patent applications, trademarks, trademark applications,
service marks, trade names, copyrights, copyright applications, franchises,
authorizations and other intellectual property rights that are necessary for the
operations of their respective businesses, without infringement upon or conflict
with the rights of any other Person with respect thereto, including all trade
names associated with any private label brands of the Borrower or any of its
Subsidiaries. To the Borrower's knowledge, no slogan or other advertising
device, product, process, method, substance, part or component, or other
material now employed, or now contemplated to be employed, by the Borrower or
any of its Subsidiaries infringes upon or conflicts with any rights owned by any
other Person, and no claim or litigation regarding any of the foregoing is
pending or threatened, except where such claim or litigation could not
reasonably be expected to result in a Material Adverse Change.

                  SECTION 4.21. TITLE.

                  (a) Each of the Borrower and its Subsidiaries has good and
marketable title to, or valid leasehold interests in, all real property and good
title to all personal property purported to be owned by it, including those
reflected on the most recent Financial Statements delivered by the Borrower, and
none of such properties and assets is subject to any Lien, except Liens
permitted under SECTION 8.2 and other than those which, in the aggregate, could
not be reasonably expected to result in a Material Adverse Change. The Borrower
and its Subsidiaries have received all deeds, assignments, waivers, consents,
non-disturbance and recognition or similar agreements, bills of sale and other
documents, and have duly effected all recordings, filings and other actions
necessary to establish, protect and perfect the Borrower's and its Subsidiaries'
right, title and interest in and to all such property.

                  (b) All Permits required to have been issued or appropriate to
enable all real property owned or leased by the Borrower or any of its
Subsidiaries to be lawfully occupied and used for all of the purposes for which
they are currently occupied and used have been lawfully issued and are in full
force and effect, other than those which in the aggregate could not be
reasonably expected to result in a Material Adverse Change.

                  (c) None of the Borrower or any of its Subsidiaries has
received any notice, or has any knowledge, of any pending, threatened or
contemplated condemnation proceeding affecting any real property owned or leased
by the Borrower or any of its Subsidiaries or any part thereof, except those
which, in the aggregate, could not be reasonably expected to result in a
Material Adverse Change.

                                       55
<PAGE>   62

                  SECTION 4.22. NEW SENIOR SUBORDINATED DEBT DOCUMENTS; RANKING
OF OBLIGATIONS.

                  (a) The execution, delivery and performance by each Loan Party
of the New Senior Subordinated Debt Documents to which it is a party and the
consummation of the transactions contemplated thereby by such Loan Party:

                  (i) are within such Loan Party's respective corporate, limited
         liability company, partnership or other powers;

                  (ii) have been duly authorized by all necessary corporate or
         other action, including the consent of stockholders where required;

                  (iii) do not and will not (A) violate any Loan Party's or any
         of its Subsidiaries' respective Constituent Documents, (B) violate any
         other Requirement of Law applicable to any Loan Party, or any order or
         decree of any Governmental Authority or arbitrator, (C) conflict with
         or result in the breach of, or constitute a default under, or result in
         or permit the termination or acceleration of, any Contractual
         Obligation of any Loan Party or any of its Subsidiaries, except for
         those that in the aggregate could not be reasonably expected to result
         in a Material Adverse Change or (D) result in the creation or
         imposition of any Lien upon any of the property of any Loan Party or
         any of its Subsidiaries; and

                  (iv) do not require the consent of, authorization by, approval
         of, notice to, or filing or registration with, any Governmental
         Authority or any other Person, other than those which will have been
         obtained at the Closing Date, each of which will be in full force and
         effect on the Closing Date.

                  (b) Each of the New Senior Subordinated Debt Documents has
been or at the Closing Date will have been duly executed and delivered by each
Loan Party party thereto and at the Closing Date will be the legal, valid and
binding obligation of each Loan Party party thereto, enforceable against such
Loan Party in accordance with its terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors' rights and remedies generally.

                  (c) None of the New Senior Subordinated Debt Documents has
been amended or modified in any respect and no provision therein has been
waived, except in each case to the extent permitted by SECTION 8.10, and each of
the representations and warranties therein are true and correct in all material
respects and no default or event which with the giving of notice or lapse of
time or both would be a default has occurred thereunder.

                  (d) All Obligations rank senior in priority of payment to all
Subordinated Debt in accordance with the respective provisions of each of the
Subordinated Debt Documents and the Preferred Stock Documents.

                  SECTION 4.23. MATERIAL AGREEMENTS. (a) Each Material Agreement
(other than the New Senior Subordinated Debt Documents) has been duly executed
and delivered by the Loan Party that is party thereto, is in full force and
effect, is the legal, valid and binding obligation of such Loan Party,
enforceable against such Loan Party in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors' rights and remedies generally.

                                       56
<PAGE>   63

                  (b) Since April 30, 2001, none of the Material Agreements
(other than the New Senior Subordinated Debt Documents) has been amended or
modified in any material respect and no provision therein has been waived since
April 30, 2001.

                  (c) Each of the representations and warranties made in the
Material Agreements is true and correct in all material respects and no default
or event which with the giving of notice or lapse of time or both would be a
default has occurred thereunder.

                                   ARTICLE V

                               FINANCIAL COVENANTS

                  As long as any of the Obligations or the Commitments remain
outstanding, unless the Requisite Lenders otherwise consent in writing, the
Borrower agrees with the Lenders and the Administrative Agent that:

                  SECTION 5.1. MINIMUM NET REVENUE. The Borrower will have, as
of the last day of each Fiscal Quarter set forth below, Net Revenue for the four
Fiscal Quarters ending on such day of not less than the following:

--------------------------------------- --------------------------------
FISCAL QUARTER ENDING                         MINIMUM NET REVENUE
--------------------------------------- --------------------------------
June 30, 2001                                    $230,000,000
--------------------------------------- --------------------------------
September 30, 2001                               $230,000,000
--------------------------------------- --------------------------------
December 31, 2001                                $230,000,000
--------------------------------------- --------------------------------
March 31, 2002                                   $240,000,000
--------------------------------------- --------------------------------
June 30, 2002                                    $250,000,000
--------------------------------------- --------------------------------
September 30, 2002                               $260,000,000
--------------------------------------- --------------------------------
December 31, 2002                                $270,000,000
--------------------------------------- --------------------------------
March 31, 2003                                   $280,000,000
--------------------------------------- --------------------------------
June 30, 2003                                    $290,000,000
--------------------------------------- --------------------------------
September 30, 2003                               $300,000,000
--------------------------------------- --------------------------------
December 31, 2003                                $310,000,000
--------------------------------------- --------------------------------

                                       57
<PAGE>   64

                  SECTION 5.2. MINIMUM EBITDA. The Borrower will have, as of the
last day of each Fiscal Quarter set forth below, EBITDA for the four Fiscal
Quarters ending on such day of not less than the following:

--------------------------------------- --------------------------------
FISCAL QUARTER ENDING                           MINIMUM EBITDA
--------------------------------------- --------------------------------
June 30, 2001                                     $3,000,000
--------------------------------------- --------------------------------
September 30, 2001                                $12,000,000
--------------------------------------- --------------------------------
December 31, 2001                                 $15,000,000
--------------------------------------- --------------------------------
March 31, 2002                                    $18,000,000
--------------------------------------- --------------------------------
June 30, 2002                                     $24,000,000
--------------------------------------- --------------------------------
September 30, 2002                                $29,000,000
--------------------------------------- --------------------------------
December 31, 2002                                 $36,500,000
--------------------------------------- --------------------------------
March 31, 2003                                    $43,000,000
--------------------------------------- --------------------------------
June 30, 2003                                     $49,000,000
--------------------------------------- --------------------------------
September 30, 2003                                $53,000,000
--------------------------------------- --------------------------------
December 31, 2003                                 $63,000,000
--------------------------------------- --------------------------------

                  SECTION 5.3. MAXIMUM SENIOR DEBT LEVERAGE RATIO. The Borrower
will maintain a Senior Debt Leverage Ratio, as determined as of the last day of
each Fiscal Quarter set forth below, for the twelve months ending on such day of
not more than the maximum ratio set forth below opposite such Fiscal Quarter:

--------------------------------------- --------------------------------
FISCAL QUARTER ENDING                    MAXIMUM SENIOR DEBT LEVERAGE
                                                     RATIO
--------------------------------------- --------------------------------
March 31, 2004                                     3.75 to 1
--------------------------------------- --------------------------------
June 30, 2004                                      3.75 to 1
--------------------------------------- --------------------------------
September 30, 2004                                 3.25 to 1
--------------------------------------- --------------------------------
December 31, 2004                                  3.25 to 1
--------------------------------------- --------------------------------
March 31, 2005                                     2.25 to 1
--------------------------------------- --------------------------------
June 30, 2005                                      2.25 to 1
--------------------------------------- --------------------------------
September 30, 2005                                 2.00 to 1
--------------------------------------- --------------------------------
December 31, 2005                                  2.00 to 1
--------------------------------------- --------------------------------
March 31, 2006                                     2.00 to 1
--------------------------------------- --------------------------------
June 30, 2006                                      2.00 to 1
--------------------------------------- --------------------------------

                                       58
<PAGE>   65

                  SECTION 5.4. MAXIMUM LEVERAGE RATIO. The Borrower will
maintain a Leverage Ratio, as determined as of the last day of each Fiscal
Quarter set forth below, for the twelve months ending on such day of not more
than the maximum ratio set forth below opposite such Fiscal Quarter:

--------------------------------------- --------------------------------
FISCAL QUARTER ENDING                       MAXIMUM LEVERAGE RATIO
--------------------------------------- --------------------------------
March 31, 2004                                     6.25 to 1
--------------------------------------- --------------------------------
June 30, 2004                                      6.25 to 1
--------------------------------------- --------------------------------
September 30, 2004                                 4.75 to 1
--------------------------------------- --------------------------------
December 31, 2004                                  4.75 to 1
--------------------------------------- --------------------------------
March 31, 2005                                     3.50 to 1
--------------------------------------- --------------------------------
June 30, 2005                                      3.50 to 1
--------------------------------------- --------------------------------
September 30, 2005                                 3.00 to 1
--------------------------------------- --------------------------------
December 31, 2005                                  3.00 to 1
--------------------------------------- --------------------------------
March 31, 2006                                     3.00 to 1
--------------------------------------- --------------------------------
June 30, 2006                                      3.00 to 1
--------------------------------------- --------------------------------

                  SECTION 5.5. MINIMUM INTEREST COVERAGE RATIO. The Borrower
will maintain a Interest Coverage Ratio, as determined as of the last day of
each Fiscal Quarter set forth below, for the four Fiscal Quarters ending in such
day, of at least the minimum ratio set forth opposite such Fiscal Quarter:

--------------------------------------- --------------------------------
FISCAL QUARTER ENDING                   MINIMUM INTEREST COVERAGE RATIO
--------------------------------------- --------------------------------
March 31, 2004                                     1.75 to 1
--------------------------------------- --------------------------------
June 30, 2004                                      1.75 to 1
--------------------------------------- --------------------------------
September 30, 2004                                 2.50 to 1
--------------------------------------- --------------------------------
December 31, 2004                                  2.50 to 1
--------------------------------------- --------------------------------
March 31, 2005                                     3.50 to 1
--------------------------------------- --------------------------------
June 30, 2005                                      3.50 to 1
--------------------------------------- --------------------------------
September 30, 2005                                 3.50 to 1
--------------------------------------- --------------------------------
December 31, 2005                                  3.50 to 1
--------------------------------------- --------------------------------
March 31, 2006                                     3.50 to 1
--------------------------------------- --------------------------------
June 30, 2006                                      3.50 to 1
--------------------------------------- --------------------------------

                                       59
<PAGE>   66

                  SECTION 5.6. MINIMUM FIXED CHARGE COVERAGE RATIO. The Borrower
will maintain a Fixed Charge Coverage Ratio, as determined as of the last day of
each Fiscal Quarter set forth below, for the four Fiscal Quarters ending in such
day, of at least the minimum ratio set forth opposite such Fiscal Quarter:

--------------------------------------- --------------------------------
FISCAL QUARTER ENDING                    MINIMUM FIXED CHARGE COVERAGE
                                                     RATIO
--------------------------------------- --------------------------------
March 31, 2004                                     1.10 to 1
--------------------------------------- --------------------------------
June 30, 2004                                      1.10 to 1
--------------------------------------- --------------------------------
September 30, 2004                                 1.40 to 1
--------------------------------------- --------------------------------
December 31, 2004                                  1.40 to 1
--------------------------------------- --------------------------------
March 31, 2005                                     1.70 to 1
--------------------------------------- --------------------------------
June 30, 2005                                      1.70 to 1
--------------------------------------- --------------------------------
September 30, 2005                                 1.70 to 1
--------------------------------------- --------------------------------
December 31, 2005                                  1.70 to 1
--------------------------------------- --------------------------------
March 31, 2006                                     1.70 to 1
--------------------------------------- --------------------------------
June 30, 2006                                      1.70 to 1
--------------------------------------- --------------------------------

                  SECTION 5.7. CAPITAL EXPENDITURES. The Borrower will not
permit Capital Expenditures to be made or incurred during each of the Fiscal
Years set forth below to be in excess of the maximum amount set forth below for
such Fiscal Year.

--------------------------------------- ------------------------------
             FISCAL YEAR                MAXIMUM CAPITAL EXPENDITURES
--------------------------------------- ------------------------------
                 2001                            $90,000,000
--------------------------------------- ------------------------------
                 2002                            $50,000,000
--------------------------------------- ------------------------------
                 2003                            $30,000,000
--------------------------------------- ------------------------------
                 2004                            $17,500,000
--------------------------------------- ------------------------------
                 2005                            $17,500,000
--------------------------------------- ------------------------------
                 2006                            $15,000,000;
--------------------------------------- ------------------------------

PROVIDED, HOWEVER, that to the extent that actual Capital Expenditures for any
Fiscal Year shall be less than the maximum amount set forth above for such
Fiscal Year (giving effect to any carryover permitted by this proviso), the
difference between said stated maximum amount and such actual Capital
Expenditures shall, in addition, be available for Capital Expenditures in the
next succeeding Fiscal Year and shall increase the scheduled maximum amount of
Capital Expenditures for the next succeeding Fiscal Year by the amount of such
difference.

                                   ARTICLE VI

                               REPORTING COVENANTS

                  As long as any of the Obligations or the Commitments remain
outstanding, unless the Requisite Lenders otherwise consent in writing, the
Borrower agrees with the Lenders and the Administrative Agent that:

                                       60
<PAGE>   67

                  SECTION 6.1. FINANCIAL STATEMENTS. The Borrower shall furnish
to the Administrative Agent (with sufficient copies for each of the Lenders) the
following:

                  (a) MONTHLY REPORTS. Within 30 days after the end of each
fiscal month in each Fiscal Year, financial information regarding the Borrower
and its Subsidiaries consisting of consolidated unaudited balance sheets as of
the close of such month and the related statements of income for such month and
that portion of the current Fiscal Year ending as of the close of such month,
setting forth in comparative form the figures for the corresponding period in
the prior year and the figures contained in the budget for the current Fiscal
Year.

                  (b) QUARTERLY REPORTS. Within 45 days after the end of each
Fiscal Quarter of each Fiscal Year, a consolidated balance sheet of the Borrower
and its consolidated Subsidiaries as at the end of such period, and the related
unaudited consolidated statements of income and of cash flows, as contained in
the Form 10-Q for such fiscal quarter provided by the Borrower to the Securities
and Exchange Commission (or any successor or analogous Governmental Authority),
and if such Form 10-Q is no longer required to be so provided by the Borrower,
then the Borrower shall provide the Lenders with comparable financial
statements, certified by a Responsible Officer of the Borrower that they fairly
present the financial condition and results of operations of the Borrower and
its Subsidiaries, as appropriate, as at the end of such periods and for such
periods, subject to changes resulting from audit and normal year-end
adjustments.

                  (c) ANNUAL REPORTS. Within 90 days after the end of each
Fiscal Year, financial information regarding the Borrower and its Subsidiaries
consisting of consolidated balance sheets of the Borrower and its Subsidiaries
as of the end of such year and related statements of income and cash flows of
the Borrower and its Subsidiaries for such Fiscal Year, all prepared in
conformity with GAAP and certified, in the case of such consolidated financial
statements, without qualification as to the scope of the audit by
Pricewaterhouse Coopers LLP or other nationally recognized independent public
accountants reasonably acceptable to the Administrative Agent, together with the
report of such accounting firm stating that (i) such financial statements fairly
present the consolidated financial position of the Borrower and its Subsidiaries
as at the dates indicated and the results of their operations and cash flow for
the periods indicated in conformity with GAAP applied on a basis consistent with
prior years (except for changes with which such independent certified public
accountants shall concur and which shall have been disclosed in the notes to the
financial statements), and (ii) the examination by such accountants in
connection with such consolidated financial statements has been made in
accordance with generally accepted auditing standards, and accompanied by a
certificate stating that in the course of the regular audit of the business of
the Borrower and its Subsidiaries such accounting firm has obtained no knowledge
that a Default or Event of Default has occurred and is continuing, or, if in the
opinion of such accounting firm, a Default or Event of Default has occurred and
is continuing, a statement as to the nature thereof.

                  (d) COMPLIANCE CERTIFICATE. Together with each delivery of any
financial statement pursuant to CLAUSES (B) and (C) of this SECTION 6.1, a
certificate of a Responsible Officer of the Borrower (each, a "COMPLIANCE
CERTIFICATE") (i) (x) showing (from and including the Fiscal Quarter ended March
31, 2004) in reasonable detail the calculations used in determining the Leverage
Ratio (for purposes of determining the Applicable Margin) and (y) demonstrating
compliance with each of the financial covenants contained in ARTICLE V which is
tested on a quarterly basis and (ii) stating that (based on a review in
reasonable detail of the condition of, and transactions affecting, the Borrower
and its Subsidiaries during the period following delivery of then most recent
previous Compliance Certificate) to such Responsible Officer's knowledge, no

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Default or Event of Default has occurred and is continuing or, if a Default or
an Event of Default has occurred and is continuing, stating the nature thereof
and the action which the Borrower proposes to take with respect thereto.

                  (e) ANNUAL BUDGET. Not later than 30 days after the end of
each Fiscal Year, a budget and financial forecast (and from time to time updates
thereto, if any) for the Borrower and its Subsidiaries (approved by the board of
directors of the Borrower) including, (a) a forecasted operating cash flows
statement of the Borrower and its Subsidiaries for the next succeeding Fiscal
Year, (b) forecasted operating cash flows statement of the Borrower and its
Subsidiaries for each Fiscal Quarter of the next succeeding Fiscal Year and (c)
such other information and projections as the Administrative Agent may
reasonably request, in each case, in a format satisfactory to the Administrative
Agent.

                  (f) MANAGEMENT LETTERS, ETC. Within ten Business Days after
receipt thereof by any Loan Party, copies of each management letter, exception
report or similar letter or report received by such Loan Party from its
independent certified public accountants;

                  (g) INTERCOMPANY LOAN BALANCES. Together with each delivery of
any financial statement pursuant to CLAUSE (B) of this SECTION 6.1, a summary of
the outstanding balance of all intercompany Indebtedness as of the last day of
the Fiscal Quarter covered by such financial statement, certified by a
Responsible Officer.

                  SECTION 6.2. DEFAULT NOTICES. As soon as practicable, and in
any event within two Business Days after a Responsible Officer of any Loan Party
has actual knowledge of the existence of any Default or Event of Default, the
Borrower shall give the Administrative Agent notice specifying the nature of
such Default or Event of Default, including the anticipated effect thereof,
which notice, if given by telephone, shall be promptly confirmed in writing on
the next Business Day.

                  SECTION 6.3. LITIGATION. Promptly after the commencement
thereof, the Borrower shall give the Administrative Agent written notice of the
commencement of all actions, suits and proceedings before any domestic or
foreign Governmental Authority or arbitrator, affecting the Borrower or any of
its Subsidiaries, which in the reasonable judgment of the Borrower, expose the
Borrower or such Subsidiary to liability in an amount aggregating $5,000,000 or
more or which, if adversely determined, could be reasonably expected to result
in a Material Adverse Change.

                  SECTION 6.4. STATION APPRAISALS. The Borrower shall deliver to
the Administrative Agent a Station Appraisal promptly following any request
therefore by the Requisite Lenders or (in the case of CLAUSE (B)) the
Administrative Agent; PROVIDED that such request for an additional Station
Appraisal may be made (a) once during any 12 month period (beginning on the
first anniversary of the Closing Date), (b) additionally, if a Default or Event
of Default has occurred which is continuing, at any time while so continuing and
(c) additionally, once following the consummation of Asset Sales in respect of
Stations having an aggregate Fair Market Value in excess of $250,000,000 and
once following further Asset Sales for each successive multiple of such amount.

                  SECTION 6.5. ASSET SALES. Prior to any Asset Sale (other than
pursuant to SECTION 8.4(A) or (B)) anticipated to generate in excess of
$10,000,000 (or its Dollar Equivalent) in Net Cash Proceeds, the Borrower shall
send the Administrative Agent a notice (a) describing such Asset Sale or the
nature and material terms and conditions of such transaction, (b) stating the

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<PAGE>   69

estimated Net Cash Proceeds anticipated to be received by the Borrower or any of
its Subsidiaries and (c) demonstrating that such Asset Sale will be in
compliance with the proviso to SECTION 8.4.

                  SECTION 6.6. SEC FILINGS; PRESS RELEASES. Promptly after the
sending or filing thereof, the Borrower shall send the Administrative Agent
copies of (a) all reports which the Borrower sends to its security holders
generally and (b) all reports and registration statements which the Borrower or
any of its Subsidiaries files with the Securities and Exchange Commission or any
national securities exchange.

                  SECTION 6.7. INSURANCE. As soon as is practicable and in any
event within 180 days after the end of each Fiscal Year, the Borrower will
furnish the Administrative Agent (in sufficient copies for each of the Lenders)
with (a) a report in form and substance reasonably satisfactory to the
Administrative Agent outlining all material insurance coverage maintained as of
the date of such report by the Borrower and its Subsidiaries and the duration of
such coverage and (b) an insurance broker's statement that all premiums then due
and payable with respect to such coverage have been paid.

                  SECTION 6.8. ERISA MATTERS. The Borrower shall furnish the
Administrative Agent (with sufficient copies for each of the Lenders):

                  (a) promptly and in any event within 30 days after the
Borrower, any of its Subsidiaries or any ERISA Affiliate knows or has reason to
know that any ERISA Event has occurred, a written statement regarding or written
notice of such ERISA Event;

                  (b) promptly and in any event within 10 days after the
Borrower, any of its Subsidiaries or any ERISA Affiliate knows or has reason to
know that a request for a minimum funding waiver under Section 412 of the Code
has been filed with respect to any Title IV Plan or Multiemployer Plan, a
written statement of a Responsible Officer of the Borrower describing such ERISA
Event or waiver request and the action, if any, which the Borrower, its
Subsidiaries and ERISA Affiliates propose to take with respect thereto and a
copy of any notice filed with the PBGC or the IRS pertaining thereto;

                  (c) simultaneously with the date that the Borrower, any of its
Subsidiaries or any ERISA Affiliate files a notice of intent to terminate any
Title IV Plan, if such termination would require material additional
contributions in order to be considered a standard termination within the
meaning of Section 4041(b) of ERISA, a copy of each notice.

                  SECTION 6.9. OTHER INFORMATION. The Borrower will provide the
Administrative Agent with such other information respecting the Borrower or any
of its Subsidiaries as any Lender through the Administrative Agent may from time
to time reasonably request.

                                  ARTICLE VII

                              AFFIRMATIVE COVENANTS

                  As long as the Obligations or the Commitments remain
outstanding, unless the Requisite Lenders otherwise consent in writing, the
Borrower agrees with the Lenders and the Administrative Agent that:

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                  SECTION 7.1. PRESERVATION OF CORPORATE EXISTENCE, ETC. The
Borrower shall, and shall cause each of its Subsidiaries to, preserve and
maintain its corporate existence, rights (charter and statutory) and (to the
extent material to its business) franchises, except as permitted by SECTIONS 8.4
and 8.7. and as indicated on SCHEDULE 4.3.

                  SECTION 7.2. COMPLIANCE WITH LAWS, ETC. The Borrower shall,
and shall cause each of its Subsidiaries to, comply with all applicable
Requirements of Law including, the Communications Act, provisions of FCC
Licenses, Broadcast Permits and other Permits and Contractual Obligations except
where the failure so to comply would not in the aggregate be reasonably expected
to result in a Material Adverse Change.

                  SECTION 7.3. CONDUCT OF BUSINESS. The Borrower shall, and
shall cause each of its Subsidiaries to, (a) conduct its business in a manner
consistent with past practice and (b) use its reasonable efforts, in the
ordinary course and consistent with past practice, to preserve its business and
the goodwill and business of the customers, advertisers, suppliers and others
having business relations with the Borrower or any of its Subsidiaries, except
in each case where the failure to comply with the covenants in each of CLAUSES
(A) and (B) above would be reasonably expected to result in a Material Adverse
Change.

                  SECTION 7.4. FCC LICENSES. The Borrower shall, and shall cause
each of its Subsidiaries to, keep in full force and effect each Material FCC
License of such person.

                  (a) The Borrower shall provide a copy of any (or, in the event
of any notice based on knowledge of the Borrower or any Subsidiary thereof, a
brief description of such default and the basis of such knowledge) notice from
the FCC of any violation with respect to any Material FCC License (which
violation could reasonably be expected to result in the cancellation,
termination or non-renewal thereof) received by it or any of its Subsidiaries
(or with respect to which the Borrower or any of its Subsidiaries may have any
knowledge).

                  (b) The Borrower shall establish and maintain wholly-owned
License Subsidiaries for the purpose of holding the FCC Licenses related to the
Stations owned by them on and after the Closing Date and shall cause the License
Subsidiaries not (i) to own any material assets other than the FCC Licenses or
(ii) to have any material liabilities except pursuant to the Subsidiary
Guarantee or the guarantees with respect to the New Senior Subordinated Notes
and intercompany Indebtedness owed to the Borrower. At all times on and after
the date hereof in the case of any FCC License acquired subsequent to the date
hereof with respect to which it is not practicable to cause such FCC License to
be acquired directly by a License Subsidiary, as soon as practicable following
the date of acquisition and at all times thereafter), the Borrower shall, and
shall cause its Subsidiaries to, cause each new FCC License issued by the FCC to
be issued to, and held by, a License Subsidiary.

                  SECTION 7.5. PAYMENT OF TAXES, ETC. The Borrower shall, and
shall cause each of its Subsidiaries to, pay and discharge before the same shall
become delinquent, all lawful governmental claims, taxes, assessments, charges
and levies the nonpayment of which results in, or could be reasonably expected
to result in, a Material Adverse Change, except where contested in good faith,
by proper proceedings and adequate reserves therefor have been established on
the books of the Borrower or the appropriate Subsidiary in conformity with GAAP.

                  SECTION 7.6. MAINTENANCE OF INSURANCE. The Borrower shall (i)
maintain, and cause to be maintained for each of its Subsidiaries insurance with
responsible and reputable insurance companies or associations in such amounts
and covering such risks as is usually carried by businesses of the size and

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character of the Borrower or such Subsidiary and, in any event, all insurance
required by any Collateral Documents and (ii) cause all insurance maintained
with respect to the properties of the Borrower and its Subsidiaries to name the
Administrative Agent on behalf of the Secured Parties as additional insured or
loss payee, as appropriate, and to provide that no cancellation, material
addition in amount or material change in coverage shall be effective until after
30 days' written notice thereof to the Administrative Agent.

                  SECTION 7.7. ACCESS. The Borrower shall from time to time,
permit the Administrative Agent and the Lenders, or any agents or
representatives thereof, within two Business Days after written notification of
the same (except that during the continuance of an Event of Default, no such
notice shall be required), at such reasonable times during reasonable business
hours, to (a) examine and make copies of and abstracts from the records and
books of account of the Borrower and each of its Subsidiaries, (b) visit the
properties of the Borrower and each of its Subsidiaries, (c) discuss the
affairs, finances and accounts of the Borrower and each of its Subsidiaries with
any of their respective officers or directors, and (d) communicate directly with
the Borrower's independent certified public accountants. The Borrower shall
authorize its independent certified public accountants to disclose to the
Administrative Agent or any Lender any and all financial statements and other
information of any kind, as the Administrative Agent or any Lender (through the
Administrative Agent) reasonably requests from the Borrower and which such
accountants may have with respect to the business, financial condition, results
of operations or other affairs of the Borrower or any of its Subsidiaries.

                  SECTION 7.8. KEEPING OF BOOKS. The Borrower shall, and shall
cause each of its Subsidiaries to keep, proper books of record and account, in
which full and correct entries shall be made in conformity with GAAP of all
financial transactions and the assets and business of the Borrower and each such
Subsidiary.

                  SECTION 7.9. MAINTENANCE OF PROPERTIES, ETC. The Borrower
shall, and shall cause each of its Subsidiaries to, maintain and preserve, (a)
all of its properties which are necessary in the conduct of its business in good
working order and condition, (b) all rights, permits, licenses, approvals and
privileges (including all Broadcast Permits and other Permits) which are used or
useful or necessary in the conduct of its business, and (c) all registered
patents, trademarks, trade names, copyrights and service marks with respect to
its business; except, in each case, where the failure to so maintain and
preserve could not in the aggregate be reasonably expected to result in a
Material Adverse Change.

                  SECTION 7.10. APPLICATION OF PROCEEDS. The Borrower shall use
the entire amount of the proceeds of the Loans as provided in SECTION 4.14.

                  SECTION 7.11. ENVIRONMENTAL. The Borrower shall, and shall
cause each of its Subsidiaries to:

                  (a) comply, and undertake all reasonable efforts to ensure
that all tenants under any lease or occupancy agreement affecting any portion of
the properties owned, leased or operated by it and all other Persons on or
occupying such property comply, in all material respects with all Environmental
Laws; PROVIDED, that upon learning of any material noncompliance with
Environmental Laws by the Borrower or any of its Subsidiaries, the Borrower
shall promptly undertake all reasonable efforts to remedy such non-compliance;

                  (b) permit the Administrative Agent, from time to time (upon
the Administrative Agent's determination in its reasonable discretion that any
of the following is advisable, but without obligation upon the Administrative

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Agent), upon notice to the Borrower and as often as may reasonably be requested,
to retain, at the Borrower's expense, an independent professional consultant to
review any report relating to Hazardous Materials prepared by or for the
Borrower and to conduct its own investigation of any of the properties owned,
leased or operated by the Borrower or any of its Subsidiaries. The Borrower may
receive copies of any reports prepared by independent experts, but the
Administrative Agent and the Lenders shall have no duty to disclose or discuss
any information produced by such reviews or investigations with the Borrower or
any of its Subsidiaries;

                  (c) promptly advise the Administrative Agent in writing and in
reasonable detail of (i) any Release of any Hazardous Material (of which the
Borrower is aware) required to be reported to any federal, state or local
governmental or regulatory agency under any applicable Environmental Laws, (ii)
any and all written communications with respect to Environmental Claims or any
Release of Hazardous Material required to be reported to any federal, state or
local governmental or regulatory agency, (iii) any remedial action taken by the
Borrower or any other Person in response to (x) any Hazardous Material on, under
or about any property owned, leaed or operated by the Borrower or its
Subsidiaries, the existence of which could reasonably be expected to result in
an Environmental Claim resulting in a Material Adverse Change or (y) any
Environmental Claim that could reasonably be expected to result in a Material
Adverse Change, (iv) the Borrower's discovery of any occurrence or condition on
any real property adjoining or in the vicinity of any property owned, leased or
operated by the Borrower or its Subsidiaries that could cause such property or
any part thereof to be classified as a " BORDER-ZONE PROPERTY" or to be
otherwise subject to any restrictions on the ownership, occupancy,
transferability or use thereof under any Environmental Laws that could
reasonably be expected to result in a Material Adverse Change, and (v) any
request for information from any governmental agency that indicates such agency
is investigating whether the Borrower or any of its Subsidiaries may be
potentially responsible for a Release of Hazardous Materials;

                  (d) promptly notify the Lenders of any proposed acquisition or
disposition of stock, assets, or property by the Borrower or its Subsidiaries,
that could reasonably be expected to expose the Borrower or any of its
Subsidiaries to, or result in, Environmental Claims that could result in a
Material Adverse Change and of any proposed action to be taken by the Borrower
or any of its Subsidiaries to commence or cease manufacturing, industrial or
other operations that could reasonably be expected to subject the Borrower or
any of its Subsidiaries to additional laws, rules or regulations, including,
without limitation, laws, rules and regulations requiring additional
environmental Permits;

                  (e) at their own expense, provide copies of such documents or
information as the Administrative Agent may reasonably request in relation to
any matters disclosed pursuant to this subsection; and

                  (f) promptly take any and all necessary remedial action
required by all applicable Environmental Laws and perform such remedial action
in compliance with all applicable Environmental Laws and orders and directives
of all federal, state and local governmental authorities except when and only to
the extent that the Borrower's or such Subsidiary's liability for the presence,
storage, use, disposal, transportation or discharge of any Hazardous Material is
not reasonably likely to give rise to a Material Adverse Change.

                  SECTION 7.12. ADDITIONAL COLLATERAL AND GUARANTIES. To the
extent not delivered to the Administrative Agent on or before the Closing Date,
the Borrower agrees promptly to (i) execute and deliver to the Administrative
Agent such amendments to the Collateral Documents as the Administrative Agent
deems necessary or advisable in order to grant to the Collateral Agent, for the
benefit of the Secured Parties, a perfected first priority security interest in

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the Stock and Stock Equivalents and other debt Securities of any Subsidiary
which are owned by the Borrower or any of its Subsidiaries and requested to be
pledged by the Administrative Agent; PROVIDED, HOWEVER, that in no event shall
the Borrower or any of its Subsidiaries be required to pledge in excess of 65%
of the outstanding Voting Stock of any Subsidiary that is not a Domestic
Subsidiary, (ii) deliver to the Collateral Agent the certificates (if any)
representing such Stock and Stock Equivalents and other debt Securities,
together with (A) in the case of such certificated Stock and Stock Equivalents,
undated stock powers endorsed in blank, and (B) in the case of such certificated
debt Securities, endorsed in blank, in each case executed and delivered by a
Responsible Officer of the Borrower or such Subsidiary, as the case may be,
(iii) in the case of any such Subsidiary that is a Domestic Subsidiary cause
such new Subsidiary (A) to become a party to the Guaranty and the applicable
Collateral Documents and (B) to take such actions necessary or advisable to
grant to the Collateral Agent for the benefit of the Secured Parties a perfected
security interest in the Collateral described in the Collateral Documents with
respect to such new Subsidiary, including the filing of Uniform Commercial Code
financing statements in such jurisdictions as may be required by the Collateral
Documents or by law or as may be reasonably requested by the Administrative
Agent and (iv) if requested by the Administrative Agent, deliver to the
Administrative Agent legal opinions relating to the matters described above,
which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Agent.

                  SECTION 7.13. INTEREST RATE CONTRACTS. The Borrower shall,
within 120 days after the Closing Date, enter into and maintain Interest Rate
Contract or Contracts, on terms and with counterparties satisfactory to the
Administrative Agent, to provide protection against interest rates on
Indebtedness bearing floating interest rates until the Loans have been repaid in
full with respect to a notional amount of at least 50% of the Term A Loans and
Term B Loans (provided, however, that such notional amount shall, as of any date
of determination, be reduced by the aggregate amount of Eurodollar Rate Loans
that have an Interest Period of 9 months or longer).

                  SECTION 7.14. UNRESTRICTED SUBSIDIARIES. The Borrower shall:

                  (a) cause the management, business and affairs of each
Unrestricted Subsidiary to be conducted in such a manner so that such
Unrestricted Subsidiary will be perceived as a legal entity separate and
distinct from the Borrower and its Subsidiaries; and

                  (b) enter in a tax sharing agreement on terms and conditions
customary and reasonably satisfactory to the Administrative Agent if the
Administrative Agent shall reasonably determine that such an agreement is
necessary to provide for the fair and reasonable allocation of federal, state
and local tax liabilities and benefits between and among (i) the Borrower and
its Subsidiaries and (ii) any Unrestricted Subsidiaries.

                  SECTION 7.15. DISSOLUTION SUBSIDIARIES. The Borrower shall (a)
ensure that no Dissolution Subsidiary shall at any time have any assets or
(except pursuant to the Loan Documents) liabilities and (b) use its best efforts
to effect the dissolution of each Dissolution Subsidiary on or before September
30, 2001.

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                                  ARTICLE VIII

                               NEGATIVE COVENANTS

                  As long as any of the Obligations or the Commitments remain
outstanding, without the written consent of the Requisite Lenders, the Borrower
agrees with the Lenders and the Administrative Agent that:

                  SECTION 8.1. INDEBTEDNESS. The Borrower will not, and will not
permit any of its Subsidiaries to, directly or indirectly create, incur, assume
or otherwise become or remain directly or indirectly liable with respect to any
Indebtedness except:

                  (a) the Obligations;

                  (b) the New Senior Subordinated Notes and other Indebtedness
existing on the date of this Agreement which is disclosed on SCHEDULE 8.1;

                  (c) Guaranty Obligations incurred by the Borrower or any
Subsidiary Guarantor in respect of Indebtedness of the Borrower or any
Subsidiary Guarantor otherwise permitted by this SECTION 8.1;

                  (d) Capital Lease Obligations and purchase money Indebtedness
incurred (or assumed, pursuant to any Permitted Acquisition) by the Borrower or
a Subsidiary of the Borrower (other than a License Subsidiary) to finance the
acquisition of fixed assets in an aggregate outstanding principal amount not to
exceed at any time (i) in respect of the sale and leaseback transactions in
respect of broadcasting towers permitted by SECTION 8.6 (to the extent such
transactions are structured as Capital Lease Obligations), $40,000,000 in
aggregate and (ii) in respect of all other transactions, $10,000,000 in
aggregate; PROVIDED, HOWEVER, that (x) the aggregate principal amount
outstanding pursuant to CLAUSES (I) and (II) shall not at any time exceed
$40,000,000 and (y) the Capital Expenditure related to any such transaction is
otherwise permitted by SECTION 5.7;

                  (e) Subordinated Debt incurred by the exchange or conversion
of any existing exchangeable or convertible Preferred Stock into Indebtedness;
PROVIDED, HOWEVER, that no such exchange or conversion shall be permitted (A)
unless (x) (either prior to or at the time of such exchange or conversion) the
terms of such Indebtedness shall be amended to provide that (i) no cash interest
payments shall be made in respect of such Subordinated Debt prior to the Final
Maturity Date (although the non-cash interest rate in respect thereof may be
increased by up to two per cent. per annum) and (ii) (to the extent deemed
necessary by the Administrative Agent) no payment on any guaranty in respect of
such Subordinated Debt given by the Restricted License Subsidiary shall be made
prior to the repayment in full of the Loan Sub-Portion and (y) the exchange or
conversion is otherwise made in accordance with the terms of the relevant
Preferred Stock Documents as at the date hereof and (B) if a Default or Event of
Default has occurred which is continuing or would result therefrom;

                  (f) zero coupon Subordinated Debt which refinances the
Preferred Stock or the Subordinated Debt referred to in SECTION 8.1(E) which
provides that no payment on any guaranty in respect thereof by the Restricted
License Subsidiary shall be made prior to the repayment in full of the Loan
Sub-Portion and which shall otherwise be on terms (including in respect of
principal amount, amortization, maturity and subordination) which are no less
favorable to the Borrower and the Lenders than the terms of the Preferred Stock

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or related Subordinated Debt being refinanced; PROVIDED, HOWEVER, that no such
Subordinated Debt shall be permitted to be incurred, issued or assumed if a
Default or Event of Default has occurred which is continuing or would result
therefrom.

                  (g) renewals, extensions, refinancings and refundings of
Indebtedness permitted by CLAUSE (D) of this SECTION 8.1 and any existing
Capital Lease Obligations and purchase money Indebtedness set forth on SCHEDULE
8.1; PROVIDED, HOWEVER, that any such renewal extension, refinancing or
refunding is in an aggregate principal amount not greater than the principal
amount of, and is on terms no less favorable to the Borrower or such Subsidiary,
including as to weighted average maturity, than the Indebtedness being renewed,
extended, refinanced or refunded;

                  (h) Indebtedness (evidenced by a Pledged Note reasonably
satisfactory to the Administrative Agent which has been delivered to the
Administrative Agent) arising from intercompany loans (i) from the Borrower to
any Subsidiary Guarantor or from any Subsidiary Guarantor to the Borrower or any
other Subsidiary Guarantor and (ii) from the Borrower or any Subsidiary
Guarantor (other then a License Subsidiary) to any Subsidiary of the Borrower
that is not a Subsidiary Guarantor or a License Subsidiary; PROVIDED, HOWEVER,
that the Investment in the intercompany loan to or from such Subsidiary is
permitted under SECTION 8.3 and PROVIDED FURTHER that no License Subsidiary
shall owe any intercompany Indebtedness except to the Borrower;

                  (i) Indebtedness arising under any performance or surety bond
entered into in the ordinary course of business (other than of a License
Subsidiary);

                  (j) Obligations (other than of a License Subsidiary) under
Interest Rate Contracts required by SECTION 7.13;

                  (k) obligations (other than of a License Subsidiary) pursuant
to a Pre-Approved Securitization Transaction permitted pursuant to SECTION
8.4(F); and

                  (l) any other Indebtedness not exceeding $10,000,000 in
aggregate.

                  SECTION 8.2. LIENS, ETC. The Borrower will not, and will not
permit any of its Subsidiaries to, create or suffer to exist, any Lien upon or
with respect to any of its properties or assets, whether now owned or hereafter
acquired, or assign, or permit any of its Subsidiaries to assign, any right to
receive income, except for:

                  (a) Liens created pursuant to the Loan Documents;

                  (b) Liens existing on the date of this Agreement and disclosed
on SCHEDULE 8.2;

                  (c) Customary Permitted Liens of the Borrower and its
Subsidiaries;

                  (d) purchase money Liens granted by the Borrower or any
Subsidiary of the Borrower (including the interest of a lessor under a Capital
Lease and Liens to which any property is subject at the time of the Borrower's
or such Subsidiary's acquisition thereof) securing Indebtedness permitted under
SECTION 8.1(D) and limited in each case to the property purchased with the
proceeds of such purchase money Indebtedness or subject to such Capital Lease;

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<PAGE>   76

                  (e) any Lien securing the renewal, extension, refinancing or
refunding of any Indebtedness secured by any Lien permitted by CLAUSES (B) or
(D) of this SECTION 8.2 without any change in the assets subject to such Lien;
and

                  (f) Liens in favor of lessors securing operating leases.

                  SECTION 8.3. INVESTMENTS. The Borrower will not, and will not
permit any of its Subsidiaries to, directly or indirectly make or maintain any
Investment except:

                  (a) Investments existing on the date of this Agreement and
disclosed on SCHEDULE 8.3;

                  (b) Investments in Cash Equivalents held in a Control Account
(as defined in the Pledge and Security Agreement) with respect to which the
Administrative Agent for the benefit of the Secured Parties has a first priority
perfected Lien;

                  (c) Investments in accounts, contract rights and chattel paper
(each as defined in the Uniform Commercial Code), notes receivable and similar
items arising or acquired in the ordinary course of business consistent with the
past practice of the Borrower and its Subsidiaries;

                  (d) Investments constituting Permitted Acquisitions;

                  (e) Investments in Joint Ventures, Unrestricted Subsidiaries
and other Persons; PROVIDED, that (i) the aggregate amount of such Investments
made in cash and the Fair Market Value of all such non-cash assets so invested
shall not exceed $40,000,000, (ii) no Default or Event of Default has occurred
which is continuing or would result from such Investment and (iii) (x) until
delivery of a Compliance Certificate for the Fiscal Quarter ended March 31,
2004, after giving effect to such Investment, the Borrower shall have Liquidity
of at least $65,000,000 and (y) after delivery of a Compliance Certificate for
the Fiscal Quarter ended March 31, 2004, the Borrower shall be in compliance
with the financial covenants set forth in SECTIONS 5.3 through 5.7 on an
historical PRO FORMA basis for the period of four Fiscal Quarters ending
immediately prior to such Investment (assuming such Investment occurred on the
first day of the applicable period);

                  (f) Investments received in settlement of amounts due to the
Borrower or any Subsidiary of the Borrower effected in the ordinary course of
business;

                  (g) Investments by (i) the Borrower in any Subsidiary
Guarantor, or by any Subsidiary Guarantor in the Borrower or any other
Subsidiary Guarantor, (ii) the Borrower or any Subsidiary Guarantor in
connection with a Permitted Acquisition, and (iii) a Subsidiary that is not a
Subsidiary Guarantor in the Borrower or any other Subsidiary;

                  (h) loans or advances to employees of the Borrower or any of
its Subsidiaries in the ordinary course of business, which loans and advances
shall not exceed the outstanding principal amount of $1,000,000 in respect of
any one employee, and $5,000,000 in the aggregate, at any time;

                  (i) Investments (which are pledged to the Administrative
Agent) received pursuant to an Asset Sale which is permitted pursuant to SECTION
8.4;

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<PAGE>   77

                  (j) any Investment made which is an Asset Swap, to the extent
permitted by SECTION 8.4(J).

                  (k) any other Investments not exceeding $1,000,000 in the
aggregate.

                  SECTION 8.4. SALE OF ASSETS. The Borrower will not, and will
not permit any of its Subsidiaries to, sell, convey, transfer, lease,
securitize, exchange or otherwise dispose of, any of its assets or any interest
therein (including the sale or factoring at maturity or collection of any
accounts) to any Person, or permit or suffer any other Person to acquire any
interest in any of its assets (any such disposition being an "ASSET SALE"),
except:

                  (a) the sale or disposition of inventory or equipment in the
ordinary course of business (including pursuant to the implementation of joint
sales agreements);

                  (b) the sale or disposition of equipment which have become
obsolete or are replaced in the ordinary course of business;

                  (c) the lease or sublease of real property not constituting a
sale and leaseback (other than a sale and leaseback permitted by SECTION 8.6);

                  (d) assignments and licenses of intellectual property of the
Borrower and its Subsidiaries in the ordinary course of business;

                  (e) any Asset Sale to the Borrower or any Subsidiary Guarantor
(except any Asset Sale made by the Restricted License Subsidiary);

                  (f) as long as no Default or Event of Default is continuing or
would result therefrom, any Pre-Approved Securitization Transaction for Fair
Market Value;

                  (g) as long as no Default or Event of Default is continuing or
would result therefrom, any Pre-Approved Station Sale for Fair Market Value;
PROVIDED, that the aggregate consideration payable to the Borrower or its
Subsidiaries in respect of such Asset Sale is not less than 75% in cash;

                  (h) as long as no Default or Event of Default is continuing or
would result therefrom, any Spectrum License Sale for Fair Market Value, payable
at least as to 75% in cash upon such sale, PROVIDED, that the Net Cash Proceeds
of such Asset Sale are applied to the prepayment of the Obligations to the
extent required by SECTION 2.7;

                  (i) as long as no Default or Event of Default is continuing or
would result therefrom, any other Asset Sale for Fair Market Value, payable as
to 75% in cash upon such sale; PROVIDED, HOWEVER, that with respect to any such
sale pursuant to this CLAUSE (I) all Net Cash Proceeds of such Asset Sale are
applied to the prepayment of the Obligations to the extent required by SECTION
2.7;

                  (j) as long as no Default or Event of Default is continuing or
would result therefrom, any Asset Swap, PROVIDED, that (i) the Borrower shall
have given the Administrative Agent prior notice thereof, (ii) the consideration
received by the Borrower or any of its Subsidiaries therefor shall be at least
equal to the Fair Market Value of the assets transferred by it pursuant to such
Asset Swap, (iii) if and to the extent that the Borrower or any of its
Subsidiaries receives consideration for the assets transferred by it pursuant to
such Asset Swap that is in addition to the Equivalent Assets received in

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<PAGE>   78

exchange therefor, such Asset Swap shall be permitted only if the provisions of
SECTIONS 2.7(A) and 8.4(I) shall be complied with in connection therewith and
(iv) no Asset Swap shall be permitted in any Fiscal Year if, after giving effect
thereto, the Station Value attributable to all assets transferred by the
Borrower and its Subsidiaries pursuant to Asset Swaps during such Fiscal Year
shall be equal to or greater than 10% of the aggregate Station Value as of the
first day of such Fiscal Year (or, in respect of the Fiscal Year ending December
31, 2001, as of the Closing Date).

PROVIDED, HOWEVER, that (notwithstanding the foregoing) prior to the repayment
in full of the Loan Sub-Portion, the Restricted License Subsidiary shall not
make an Asset Sale of any FCC License if the principal outstanding amount of the
Loan Sub-Portion exceeds or would (as a result thereof) exceed 33% of the
portion of Station Value which is solely attributable to the value of all FCC
Licenses held by the Restricted License Subsidiary.

                  SECTION 8.5. RESTRICTED PAYMENTS. The Borrower will not, and
will not permit any of its Subsidiaries to, directly or indirectly, declare,
order, pay, make or set apart any sum for any Restricted Payment except:

                  (a) the redemption of the New Senior Subordinated Notes or any
Preferred Stock from the Net Cash Proceeds arising from Spectrum License Sales
to the extent not required to be applied in mandatory prepayment of the
Obligations pursuant to SECTION 2.7(A)(I);

                  (b) the following dividends on the Preferred Stock:

                  (i) cash dividends on the 12-1/2% Cumulative Exchangeable
         Preferred Stock; PROVIDED, HOWEVER, that no such cash dividends shall
         be permitted prior to the date of delivery of a Compliance Certificate
         for the Fiscal Quarter ended March 31, 2004 unless, after giving effect
         to the payment of such dividends, the Dividend Payment Ratio for the
         most recently ended Fiscal Quarter (for which a Compliance Certificate
         has been delivered) would be equal to or greater than 1.0 to 1.

                  (ii) cash dividends on the 13-1/4% Cumulative Junior
         Exchangeable Preferred Stock if, after giving effect to the payment of
         such dividends, the Fixed Charge Coverage Ratio for the twelve month
         period ending on the most recently ended Fiscal Quarter (for which a
         Compliance Certificate has been delivered) is at least 1.2 to 1;

PROVIDED, HOWEVER, that the Restricted Payments described in CLAUSES (A) and (B)
above shall not be permitted if either (A) an Event of Default or Default shall
have occurred and be continuing at the date of declaration or payment thereof or
would result therefrom or (B) such Restricted Payment is prohibited under the
terms of any Indebtedness (other than the Obligations) of the Borrower or any of
its Subsidiaries; and PROVIDED FURTHER, that, notwithstanding any other
provision of this Agreement, the Borrower will not, and will not permit any of
its Subsidiaries to, directly or indirectly, permit any Unrestricted Subsidiary
to make any Restricted Payment of the types described in CLAUSE (B) or CLAUSE
(C) of the definition of "RESTRICTED PAYMENT" in SECTION 1.1.

                  SECTION 8.6. OPERATING LEASES; SALE/LEASEBACKS. The Borrower
will not, and will not permit any of its Subsidiaries to, enter into any sale
and leaseback transaction other than with respect to broadcasting towers with an
aggregate Fair Market Value not in excess of $40,000,000.

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<PAGE>   79

                  SECTION 8.7. RESTRICTION ON FUNDAMENTAL CHANGES; PERMITTED
ACQUISITIONS. Except in connection with a Permitted Acquisition, the Borrower
will not, and will not permit any of its Subsidiaries to (a) merge with any
Person, (b) consolidate with any Person, (c) acquire all or substantially all of
the Stock or Stock Equivalents of any Person, (d) acquire all or substantially
all of the assets of any Person or all or substantially all of the assets
constituting the business of a division, branch or other unit operation of any
Person, (e) enter into any joint venture or partnership with any Person or (f)
acquire or create any Subsidiary unless, after giving effect thereto, the
Borrower is in compliance with SECTION 7.12; PROVIDED, HOWEVER, that, so long as
no Default or Event of Default is outstanding or would result therefrom, (i) the
Borrower shall be permitted to merge with any Subsidiary Guarantor if the
Borrower is the surviving Person, (ii) a Subsidiary Guarantor (other than any
License Subsidiary) shall be permitted to merge with another Subsidiary
Guarantor (other than any License Subsidiary), and (iii) any Dissolution
Subsidiary shall be permitted to be dissolved as contemplated by SECTION 4.24.

                  SECTION 8.8. CHANGE IN NATURE OF BUSINESS.

                  (a) The Borrower will not, and will not permit any of its
Subsidiaries to, engage in any business other than a Core Business, any business
which they are engaged in at the Closing Date and any other business which they
acquire as a result of an Investment permitted by SECTIONS 8.3.

                  (b) The Borrower shall not permit any License Subsidiary to
engage in any business other than the holding, ownership and maintenance of FCC
Licenses and the performance of its obligations under any of the Loan Documents
to which it is a party and shall not permit any Subsidiary, other than a License
Subsidiary, to own a Material FCC License.

                  SECTION 8.9. TRANSACTIONS WITH AFFILIATES. The Borrower will
not, and will not permit any of its Subsidiaries to, except as otherwise
expressly permitted herein, do any of the following: (a) make any Investment in
an Affiliate of the Borrower (or any officer or director of the Borrower or any
of its Affiliates) which is not a Subsidiary of the Borrower; (b) transfer,
sell, lease, assign or otherwise dispose of any asset to any Affiliate of the
Borrower (or any officer or director of the Borrower or any of its Affiliates)
which is not a Subsidiary of the Borrower; (c) merge into or consolidate with or
purchase or acquire assets from any Affiliate of the Borrower (or any officer or
director of the Borrower or any of its Affiliates) which is not a Subsidiary of
the Borrower; (d) repay any Indebtedness to any Affiliate of the Borrower (or
any officer or director of the Borrower or any of its Affiliates) which is not a
Subsidiary of the Borrower; or (e) enter into any other transaction directly or
indirectly with or for the benefit of , any Affiliate of the Borrower (or any
officer or director of the Borrower or any of its Affiliates) which is not a
Subsidiary Guarantor (including guaranties and assumptions of obligations of any
such Affiliate), except for (i) transactions on terms that are (when taken as a
whole) no less favorable to the Borrower or such Subsidiary Guarantor than those
that might reasonably be expected to be obtained at such time in a comparable
arm's length transaction with a Person not an Affiliate (or any officer or
director of the Borrower or any of its Affiliates) and (ii) salaries and other
employee compensation to officers or directors of the Borrower or any of its
Subsidiaries.

                  SECTION 8.10. RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS; NO NEW
NEGATIVE PLEDGE. Other than pursuant to the Loan Documents, any agreements
governing any purchase money Indebtedness or Capital Lease Obligations permitted
by clause (B) or (D) of SECTION 8.1 (in which latter case, any prohibition or
limitation shall only be effective against the assets financed thereby) and any
executed agreement with respect to an Asset Sale permitted under SECTION 8.4,
the Borrower will not, and will not permit any of its Subsidiaries to, (a) agree

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<PAGE>   80

to enter into or suffer to exist or become effective any consensual encumbrance
or restriction of any kind on the ability of such Subsidiary to pay dividends or
make any other distribution or transfer of funds or assets or make loans or
advances to or other Investments in, or pay any Indebtedness owed to, the
Borrower or any other Subsidiary of the Borrower or (b) enter into or suffer to
exist or become effective any agreement which prohibits or limits the ability of
the Borrower or any Subsidiary to create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, to secure the Obligations, including any agreement which
requires other Indebtedness or Contractual Obligation to be equally and ratably
secured with the Obligations.

                  SECTION 8.11. DISPOSAL OF SUBSIDIARY STOCK The Borrower shall
not, and shall not permit any of its Subsidiaries to, except as permitted by
SECTIONS 8.4 and 8.7:

                  (a) directly or indirectly issue, sell, assign, pledge or
otherwise encumber or dispose of any Stock of any of its Subsidiaries, except to
qualify directors if required by applicable law; or

                  (b) permit any of its Subsidiaries directly or indirectly to
sell, assign, pledge or otherwise encumber or dispose of any Stock of any of its
Subsidiaries, except to the Borrower, a Subsidiary of the Borrower, or to
qualify directors if required by applicable law.

                  SECTION 8.12. MODIFICATION OF CONSTITUENT DOCUMENTS. The
Borrower will not, and will not permit any of its Subsidiaries to, change its
capital structure (including in the terms of its outstanding Stock) or otherwise
amend its Constituent Documents, except for changes and amendments which,
individually or in the aggregate, do not materially affect the rights and
privileges of the Borrower or any of its Subsidiaries, or the interests of the
Administrative Agent and the Lenders under the Loan Documents or in the
Collateral.

                  SECTION 8.13. MATERIAL AGREEMENTS. The Borrower will not, and
will not permit any of its Subsidiaries to, (a) alter, rescind, terminate,
amend, supplement, waive or otherwise modify any provision of any Material
Agreement (except for modifications which do not materially and adversely affect
the rights and privileges of the Borrower or any of its Subsidiaries under such
Material Agreement, or the interests of the Secured Parties under the Loan
Documents or in the Collateral) or (b) permit any breach or default to exist
under any Material Agreement or take or fail to take any action thereunder, if
to do so could be reasonably expected to result in a Material Adverse Change;
PROVIDED, HOWEVER, that "MATERIAL AGREEMENTS" for the purposes of this SECTION
8.13 shall not include Subordinated Debt Documents and Preferred Stock
Documents.

                  SECTION 8.14. MODIFICATION OF SUBORDINATED DEBT DOCUMENTS AND
PREFERRED STOCK DOCUMENTS.

                  (a) Except as provided in SECTION 8.1(E), the Borrower will
not, and will not permit any of its Subsidiaries to, change or amend the terms
of any Subordinated Debt Document or Preferred Stock Document (or any indenture
or agreement in connection therewith) if the effect of such amendment is to: (i)
increase the interest rate or dividend on such Subordinated Debt or Preferred
Stock; (ii) change the dates upon which payments of principal or interest, or
the dates of redemption or payment of dividends are due on such Subordinated
Debt or Preferred Stock other than to extend such dates; (iii) change any
default or event of default therein other than to delete or make less
restrictive any default provision therein, or add any covenant with respect

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<PAGE>   81

thereto; (iv) change the redemption or prepayment provisions of such
Subordinated Debt or Preferred Stock other than to extend the dates therefor or
to reduce the premiums payable in connection therewith; or (v) change or amend
any other term if such change or amendment would materially increase the
obligations of the Borrower or such Subsidiary (as the case may be) or confer
additional rights to the holder of such Subordinated Debt or Preferred Stock in
a manner materially adverse to the Borrower, any of its Subsidiaries, the
Administrative Agent or any Lender.

                  (b) The Borrower shall not designate any Indebtedness (other
than the Indebtedness under the Loan Documents and under Hedging Contracts with
any Lender) as "DESIGNATED SENIOR DEBT" pursuant to any of the Preferred Stock
Documents or the Subordinated Debt Documents

                  SECTION 8.15. ACCOUNTING CHANGES; FISCAL YEAR. The Borrower
will not, and will not permit any of its Subsidiaries to, change its (a)
accounting treatment and reporting practices or tax reporting treatment, except
as required by GAAP or any Requirement of Law and disclosed to the Lenders and
the Administrative Agent or (b) Fiscal Year.

                  SECTION 8.16. MARGIN REGULATIONS. The Borrower will not, and
will not permit any of its Subsidiaries to, use all or any portion of the
proceeds of any credit extended hereunder to purchase or carry margin stock
(within the meaning of Regulation U of the Federal Reserve Board).

                  SECTION 8.17. CANCELLATION OF INDEBTEDNESS OWED TO IT. The
Borrower will not, and will not permit any of its Subsidiaries to, cancel any
claim or Indebtedness owed to it except in the ordinary course of business
consistent with past practice.

                  SECTION 8.18. NO SPECULATIVE TRANSACTIONS. The Borrower will
not, and will not permit any of its Subsidiaries to, engage in any transaction
involving Hedging Contracts except as required by SECTION 7.13 or for the sole
purpose of hedging in the normal course of business and consistent with industry
practices.

                  SECTION 8.19. COMPLIANCE WITH ERISA. The Borrower will not,
and will not permit any of its Subsidiaries to, or cause or permit any ERISA
Affiliate to, cause or permit to occur (a) an event which could result in the
imposition of a Lien under Section 412 of the IRC or Section 302 or 4068 of
ERISA or (b) an ERISA Event that could be reasonably expected to result in a
Material Adverse Change.

                                   ARTICLE IX

                                EVENTS OF DEFAULT

                  SECTION 9.1. EVENTS OF DEFAULT. Each of the following events
shall be an Event of Default:

                  (a) the Borrower shall fail to pay any principal of any Loan
when the same becomes due and payable; or

                  (b) the Borrower shall fail to pay any interest on any Loan,
any fee under any of the Loan Documents or any other Obligation (other than one
referred to in CLAUSE (A) above) and such non-payment continues for a period of
two Business Days after the due date therefor;

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<PAGE>   82

                  (c) any representation or warranty made or deemed made by any
Loan Party in any Loan Document or by any Loan Party (or any of its officers) in
connection with any Loan Document shall prove to have been incorrect in any
material respect when made or deemed made; or

                  (d) any Loan Party shall fail to perform or observe (i) any
term, covenant or agreement contained in ARTICLE V, SECTIONS 6.2, 7.1, 7.10 or
7.12 or ARTICLE VIII, or (ii) any other term, covenant or agreement contained in
this Agreement or in any other Loan Document if such failure under this CLAUSE
(II) shall remain unremedied for 30 days (or, in respect of SECTIONS 6.1 OR 7.7,
for 5 Business Days) after the earlier of the date on which (A) a Responsible
Officer of the Borrower becomes aware of such failure or (B) written notice
thereof shall have been received by the Borrower from the Administrative Agent
or any Lender; or

                  (e) (i) the Borrower or any of its Subsidiaries shall fail to
make any payment on any Indebtedness (other than the Obligations) of the
Borrower or any such Subsidiary (or any Guaranty Obligation in respect of
Indebtedness of any other Person) having a principal amount of $5,000,000 or
more, when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise); or (ii) any other event
shall occur or condition shall exist under any agreement or instrument relating
to any such Indebtedness, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Indebtedness;
or (iii) any such Indebtedness shall become or be declared to be due and
payable, or required to be prepaid or repurchased (other than by a regularly
scheduled required prepayment), prior to the stated maturity thereof; or (iv)
the Borrower or any of its Subsidiaries shall breach any material provision of
any Material Agreement which (in the case of this CLAUSE (IV)) could reasonably
be expected to result in a Material Adverse Change; or

                  (f) the Borrower or any of its Subsidiaries shall generally
not pay its debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general assignment for the
benefit of creditors, or any proceeding shall be instituted by or against the
Borrower or any of its Subsidiaries seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a custodian,
receiver, trustee or other similar official for it or for any substantial part
of its property and, in the case of any such proceedings instituted against the
Borrower or any of its Subsidiaries (but not instituted by it), either such
proceedings shall remain undismissed or unstayed for a period of 60 days or any
of the actions sought in such proceedings shall occur; or the Borrower or any of
its Subsidiaries shall take any corporate action to authorize any of the actions
set forth above in this SUBSECTION (F); or

                  (g) one or more judgments or orders (or other similar process)
involving, in any single case or in the aggregate, an amount in excess of
$5,000,000 in the case of a money judgment, shall be rendered against one or
more of the Borrower and its Subsidiaries and, to the extent not covered by
insurance , shall remain unpaid and either (i) enforcement proceedings shall
have been commenced by any creditor upon such judgment or order or (ii) there
shall be any period of 30 consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be
in effect; or

                  (h) any order, judgment or decree shall be entered against any
Loan Party or any of their respective Subsidiaries decreeing a dissolution or

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<PAGE>   83

split-up of any Loan Party or any of their respective Subsidiaries, and such
order shall remain undischarged or unstayed for a period in excess of 30 days;
or

                  (i) an ERISA Event shall occur and the amount of all
liabilities and deficiencies resulting therefrom, whether or not assessed,
exceeds $5,000,000 in the aggregate; or

                  (j) any provision of any Collateral Document or any Guaranty
after delivery thereof pursuant to this Agreement or any other Loan Document
shall for any reason cease to be valid and binding, or enforceable against, on
any Loan Party party thereto, or any Loan Party shall so state in writing; or

                  (k) any Collateral Document shall for any reason cease to
create a valid Lien on any of the Collateral purported to be covered thereby or,
except as permitted by the Loan Documents, such Lien shall cease to be a
perfected and first priority Lien or any Loan Party shall so state in writing;
or

                  (l) there shall occur any Change of Control; or

                  (m) there shall occur a Material Adverse Change, and such
Material Adverse Change is not remedied to the satisfaction of the
Administrative Agent within 30 days of its occurrence; or

                  (n) any Material FCC License shall be (i) canceled, terminated
or finally denied renewal for any reason; or (ii) renewed on terms which
materially adversely affect the economic or commercial value or usefulness
thereof; or

                  (o) the Borrower or any of its Subsidiaries shall fail to
comply in all material respects with the requirements of any FCC consent
obtained to consummate any acquisition.

                  SECTION 9.2. REMEDIES.

                  (a) During the continuance of any Event of Default, the
Administrative Agent (i) may, and shall at the request of the Requisite Lenders,
by notice to the Borrower declare that all or any portion of the Commitments be
terminated, whereupon the obligation of each Lender to make any Loan shall
immediately terminate, and/or (ii) may and shall at the request of the Requisite
Lenders, by notice to the Borrower, declare the Loans, all interest thereon and
all other amounts and Obligations payable under this Agreement to be forthwith
due and payable, whereupon the Loans, all such interest and all such amounts and
Obligations shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; PROVIDED, HOWEVER, that upon the occurrence of the Event
of Default specified in SECTION 9.1(F), (A) the Commitments of each Lender to
make Loans and of each Lender shall automatically be terminated and (B) the
Loans, all such interest and all such amounts and Obligations shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower. In addition to the remedies set forth above, the Administrative
Agent may exercise any remedies provided for by the Collateral Documents in
accordance with the terms thereof or any other remedies provided by applicable
law.

                  (b) On and following the exercise by the Administrative Agent
of rights under SECTION 9.2(A) or the operation of SECTIONS 9.2(A)(A) OR (B),
each Lender shall be deemed to purchase participations in each other Loan
outstanding from each other Lender, such that after giving effect to such
purchases, each Lender will hold a portion of each Loan (including the Loan
Sub-Portion) equal to its Ratable Portion of all Loans outstanding at such time

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<PAGE>   84

and shall receive such payments pursuant to SECTION 2.11 towards repayment of
its Loans in such amounts as if each Lender held a Ratable Portion of all Loans
outstanding at such time; PROVIDED, HOWEVER, that each participation which is
deemed purchased pursuant to this SECTION 9.2(B) shall be in respect of the
principal of, and not interest on, each Loan so participated.

                  SECTION 9.3. RESCISSION. If at any time after termination of
the Revolving Credit Commitments and/or acceleration of the maturity of the
Loans, the Borrower shall pay all arrears of interest and all payments on
account of principal of the Loans and Reimbursement Obligations which shall have
become due otherwise than by acceleration (with interest on principal and, to
the extent permitted by law, on overdue interest, at the rates specified herein)
and all Events of Default and Defaults (other than non-payment of principal of
and accrued interest on the Loans due and payable solely by virtue of
acceleration) shall be remedied or waived pursuant to SECTION 11.1, then upon
the written consent of the Requisite Lenders and written notice to the Borrower,
the termination of the Revolving Credit Commitments and/or the acceleration and
their consequences may be rescinded and annulled; but such action shall not
affect any subsequent Event of Default or Default or impair any right or remedy
consequent thereon. The provisions of the preceding sentence are intended merely
to bind the Lenders to a decision which may be made at the election of the
Requisite Lenders; they are not intended to benefit the Borrower and do not give
the Borrower the right to require the Lenders to rescind or annul any
acceleration hereunder, even if the conditions set forth herein are met.

                                   ARTICLE X

                  THE ADMINISTRATIVE AGENT AND COLLATERAL AGENT

                  SECTION 10.1. AUTHORIZATION AND ACTION.

                  (a) Each Lender hereby appoints Citicorp as the Administrative
Agent hereunder and each Lender authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
and the other Loan Documents as are delegated to the Administrative Agent under
such agreements and to exercise such powers as are reasonably incidental
thereto. Without limitation of the foregoing, each Lender hereby authorizes the
Administrative Agent to execute and deliver, and to perform its obligations
under, each of the Loan Documents to which the Administrative Agent is a party
and to exercise all rights, powers and remedies that the Administrative Agent
may have under such Loan Documents and that under the Collateral Documents the
Administrative Agent is acting as agent for the Lenders and the other Secured
Parties.

                  (b) As to any matters not expressly provided for by this
Agreement and the other Loan Documents (including enforcement or collection),
the Administrative Agent shall not be required to exercise any discretion or
take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Requisite Lenders, and such instructions shall be binding
upon all Lenders; PROVIDED, HOWEVER, that the Administrative Agent shall not be
required to take any action which (i) the Administrative Agent in good faith
believes exposes it to liability individually unless the Administrative Agent
receives an indemnification satisfactory to it from the Lenders with respect to
such action or (ii) is contrary to this Agreement or applicable law. The
Administrative Agent agrees to give to each Lender prompt notice of each notice
given to it by any Loan Party pursuant to the terms of this Agreement or the
other Loan Documents.

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<PAGE>   85

                  (c) In performing its functions and duties hereunder and under
the other Loan Documents, the Administrative Agent is acting solely on behalf of
the Lenders and its duties are entirely administrative in nature. The
Administrative Agent does not assume and shall not be deemed to have assumed any
obligation other than as expressly set forth herein and in the other Loan
Documents or any other relationship as the agent, fiduciary or trustee of or for
any Lender or holder of any other Obligation. The Administrative Agent may
perform any of its duties under any of the Loan Documents by or through its
agents or employees.

                  (d) Notwithstanding anything to the contrary contained in this
Agreement, each of the Syndication Agent and each Co-Documentation Agent is a
Lender designated as "SYNDICATION AGENT" or "CO-DOCUMENTATION AGENT" for title
purposes only and in such capacity shall have no obligations or duties
whatsoever under this Agreement or any other Loan Document to any Loan Party or
any Lender and shall have no rights separate from its rights as a Lender except
as expressly provided in this Agreement. The Arranger shall have no obligations
or duties whatsoever under this Agreement or any other Loan Document to any Loan
Party.

                  SECTION 10.2. ADMINISTRATIVE AGENT'S RELIANCE, ETC. Neither
the Administrative Agent nor any of its Affiliates or any of the respective
directors, officers, agents or employees of the Administrative Agent or any such
Affiliate shall be liable for any action taken or omitted to be taken by it,
him, her or them under or in connection with this Agreement or the other Loan
Documents, except for its, his, her or their own gross negligence or willful
misconduct. Without limiting the foregoing, the Administrative Agent (a) may
treat the payee of any Note as its holder until such Note has been assigned in
accordance with SECTION 11.2; (b) may rely on the Register to the extent set
forth in SECTION 11.2(C); (c) may consult with legal counsel (including counsel
to the Borrower or any other Loan Party), independent public accountants and
other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (d) makes no warranty or representation to any
Lender and shall not be responsible to any Lender for any statements, warranties
or representations made by or on behalf of the Borrower or any of its
Subsidiaries in or in connection with this Agreement or any of the other Loan
Documents; (e) shall not have any duty to ascertain or to inquire either as to
the performance or observance of any of the terms, covenants or conditions of
this Agreement or any of the other Loan Documents or the financial condition of
any Loan Party, or the existence or possible existence of any Default or Event
of Default; (f) shall not be responsible to any Lender for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of, or the
attachment, perfection or priority of any Lien created or purported to be
created under or in connection with, this Agreement or any of the other Loan
Documents or any other instrument or document furnished pursuant hereto or
thereto; and (g) shall incur no liability under or in respect of this Agreement
or any of the other Loan Documents by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopy) or any
telephone message believed by it in good faith to be genuine and signed or sent
by the proper party or parties.

                  SECTION 10.3. THE ADMINISTRATIVE AGENT INDIVIDUALLY. With
respect to its Ratable Portion, if any, the Administrative Agent in its
individual capacity as Lender, shall have and may exercise the same rights and
powers hereunder and is subject to the same obligations and liabilities as and
to the extent set forth herein for any other Lender. The terms "LENDERS" or
"REQUISITE LENDERS" or any similar terms shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its individual capacity
as a Lender or as one of the Requisite Lenders. The Administrative Agent and its
Affiliates may accept deposits from, lend money to, and generally engage in any
kind of banking, trust or other business with any Loan Party as if it were not
acting as the Administrative Agent.

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                  SECTION 10.4. LENDER CREDIT DECISION. Each Lender acknowledges
that it shall, independently and without reliance upon the Administrative Agent
or any other Lender conduct its own independent investigation of the financial
condition and affairs of the Borrower and each other Loan Party in connection
with the making and continuance of the Loans. Each Lender also acknowledges that
it will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement and other Loan Documents.

                  SECTION 10.5. INDEMNIFICATION. Each Lender agrees to indemnify
the Administrative Agent and each of its Affiliates, and each of their
respective directors, officers, employees, agents and advisors (to the extent
not reimbursed by the Borrower), from and against such Lender's aggregate
Ratable Portion of any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses and disbursements
(including reasonable fees and disbursements of legal counsel) of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against, the
Administrative Agent or any of its Affiliates, directors, officers, employees,
agents and advisors in any way relating to or arising out of this Agreement or
the other Loan Documents or any action taken or omitted by the Administrative
Agent under this Agreement or the other Loan Documents; PROVIDED, HOWEVER, that
no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Administrative Agent's or such Affiliate's
gross negligence or willful misconduct. Without limiting the foregoing, each
Lender agrees to reimburse the Administrative Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including reasonable fees and
disbursements of legal counsel) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of its rights or
responsibilities under, this Agreement or the other Loan Documents, to the
extent that the Administrative Agent is not reimbursed for such expenses by the
Borrower or another Loan Party.

                  SECTION 10.6. SUCCESSOR ADMINISTRATIVE AGENT. The
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders and the Borrower or may be removed at any time (with or without
cause) upon by written notice of the Requisite Lenders. Upon any such
resignation or notice of removal, the Requisite Lenders shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent
shall have been so appointed by the Requisite Lenders, and shall have accepted
such appointment, within 30 days after the retiring Administrative Agent's
giving of notice of resignation or receipt of notice of removal, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, selected from among the Lenders. In either case, such
appointment shall be subject to the prior written approval of the Borrower
(which approval may not be unreasonably withheld and shall not be required upon
the occurrence and during the continuance of an Event of Default). Upon the
acceptance of any appointment as Administrative Agent by a successor
Administrative Agent, such successor Administrative Agent shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations under this Agreement and the other Loan
Documents. Prior to any retiring Administrative Agent's resignation or removal
hereunder as Administrative Agent, the retiring Administrative Agent shall take
such action as may be reasonably necessary to assign to the successor
Administrative Agent its rights as Administrative Agent under the Loan
Documents. After such resignation or removal, the retiring Administrative Agent

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shall continue to have the benefit of this ARTICLE X as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this Agreement
and the other Loan Documents.

                  SECTION 10.7. CONCERNING THE COLLATERAL AND THE COLLATERAL
DOCUMENTS.

                  (a) Each Lender agrees that any action taken by the
Administrative Agent or the Requisite Lenders (or, where required by the express
terms of this Agreement, a greater proportion of the Lenders) in accordance with
the provisions of this Agreement or of the other Loan Documents, and the
exercise by the Administrative Agent or the Requisite Lenders (or, where so
required, such greater proportion) of the powers set forth herein or therein,
together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders and other Secured Parties.
Without limiting the generality of the foregoing, the Administrative Agent shall
have the sole and exclusive right and authority to (i) act as the disbursing and
collecting agent for the Lenders with respect to all payments and collections
arising in connection herewith and with the Collateral Documents; (ii) execute
and deliver each Collateral Document and accept delivery of each such agreement
delivered by the Borrower or any of its Subsidiaries; (iii) act as collateral
agent for the Lenders and the other Secured Parties for purposes of the
perfection of all security interests and Liens created by such agreements and
all other purposes stated therein; PROVIDED, HOWEVER, that the Administrative
Agent hereby appoints, authorizes and directs each Lender to act as collateral
sub-agent for the Administrative Agent and the Lenders for purposes of the
perfection of all security interests and Liens with respect to the Borrower's
and its Subsidiaries' respective deposit accounts maintained with, and cash and
Cash Equivalents held by, such Lender; (iv) manage, supervise and otherwise deal
with the Collateral; (v) take such action as is necessary or desirable to
maintain the perfection and priority of the security interests and Liens created
or purported to be created by the Collateral Documents; and (vi) except as may
be otherwise specifically restricted by the terms hereof or of any other Loan
Document, exercise all remedies given to the Administrative Agent, the Lenders
and the other Secured Parties with respect to the Collateral under the Loan
Documents relating thereto, applicable law or otherwise.

                  (b) Each of the Lenders hereby directs, in accordance with the
terms hereof, the Administrative Agent to release (or, in the case of clause
(ii) below, release or subordinate) any Lien held by the Administrative Agent
for the benefit of the Lenders:

                  (i) against all of the Collateral, upon termination of the
         Commitments and payment and satisfaction in full of all Loans and all
         other Obligations which have matured and which the Administrative Agent
         has been notified in writing are then due and payable;

                  (ii) against any assets that are subject to a Lien permitted
         by SECTION 8.2(B), (D) or (E); and

                  (iii) against any part of the Collateral sold or disposed of
         by a Loan Party if such sale or disposition is permitted by this
         Agreement (or permitted pursuant to a waiver or consent of a
         transaction otherwise prohibited by this Agreement) or, if not pursuant
         to such sale or disposition, against any part of the Collateral, if
         such release is consented to by the Requisite Lenders (or all the
         Lenders, if required pursuant to SECTION 11.1(A)(VIII)).

                  Each of the Lenders hereby directs the Administrative Agent to
execute and deliver or file such termination and partial release statements and
do such other things as are necessary to release Liens to be released pursuant

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<PAGE>   88

to this SECTION 10.7 promptly upon the effectiveness of any such release.

                  SECTION 10.8. COLLATERAL MATTERS RELATING TO RELATED
OBLIGATIONS. The benefit of the Loan Documents and of the provisions of this
Agreement relating to the Collateral shall extend to and be available in respect
of any Secured Obligation which arises under any Hedging Contract or which is
otherwise owed to Persons other than the Administrative Agent or the Lenders
(collectively, "RELATED OBLIGATIONS") solely on the condition and understanding,
as among the Administrative Agent and all Secured Parties, that (i) the Related
Obligations shall be entitled to the benefit of the Loan Documents and the
Collateral to the extent expressly set forth in this Agreement and the other
Loan Documents and to such extent the Administrative Agent shall hold, and have
the right and power to act with respect to, the Guaranty and the Collateral on
behalf of and as agent for the holders of the Related Obligations, but the
Administrative Agent is otherwise acting solely as agent for the Lenders and the
and shall have no fiduciary duty, duty of loyalty, duty of care, duty of
disclosure or other obligation whatsoever to any holder of Related Obligations;
(ii) all matters, acts and omissions relating in any manner to the Guaranty, the
Collateral, or the omission, creation, perfection, priority, abandonment or
release of any Lien, shall be governed solely by the provisions of this
Agreement and the other Loan Documents and no separate Lien, right, power or
remedy shall arise or exist in favor of any Secured Party under any separate
instrument or agreement or in respect of any Related Obligation; and (iii) each
Secured Party shall be bound by all actions taken or omitted, in accordance with
the provisions of this Agreement and the other Loan Documents, by the
Administrative Agent and the Requisite Lenders, each of whom shall be entitled
to act at its sole discretion and exclusively in its own interest given its own
Commitments and its own interest in the Loans and other Obligations to it
arising under this Agreement or the other Loan Documents, without any duty or
liability to any other Secured Party or as to any Related Obligation and without
regard to whether any Related Obligation remains outstanding or is deprived of
the benefit of the Collateral or becomes unsecured or is otherwise affected or
put in jeopardy thereby; and (iv) no holder of Related Obligations and no other
Secured Party (except the Administrative Agent and the Lenders, to the extent
set forth in this Agreement) shall have any right to be notified of, or to
direct, require or be heard with respect to, any action taken or omitted in
respect of the Collateral or under this Agreement or the Loan Documents; and (v)
no holder of any Related Obligation shall exercise any right of setoff, banker's
lien or similar right except as expressly provided in SECTION 11.6.

                                   ARTICLE XI

                                  MISCELLANEOUS

                  SECTION 11.1. AMENDMENTS, WAIVERS, ETC.

                  (a) No amendment or waiver of any provision of this Agreement
or any other Loan Document nor consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be in writing
and signed by the Requisite Lenders, and then any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; PROVIDED, HOWEVER, that no amendment, waiver or consent shall,
unless in writing and signed by each Lender affected thereby, in addition to the
Requisite Lenders, do any of the following:

                  (i) waive any of the conditions specified in SECTION 3.1 or
         3.2 except with respect to a condition based upon another provision
         hereof, the waiver of which requires only the concurrence of the
         Requisite Lenders or the Administrative Agent;

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<PAGE>   89

                  (ii) increase the Commitments of such Lender or subject such
         Lender to any additional obligation;

                  (iii) extend the scheduled final maturity of any Loan owing to
         such Lender, or waive, reduce or postpone any scheduled date fixed for
         the payment or reduction of principal of any such Loan (it being
         understood that SECTION 2.7 does not provide for scheduled dates fixed
         for payment) or for the reduction of such Lender's Commitments;

                  (iv) reduce the principal amount of any Loan (other than by
         the payment or prepayment thereof) owing to such Lender;

                  (v) reduce the rate of interest on any Loan owing to such
         Lender or the basis of any fee payable to such Lender hereunder;

                  (vi) postpone any scheduled date fixed for payment of such
         interest or fees to such Lender;

                  (vii) change the aggregate Ratable Portions of the Lenders
         which shall be required for the Lenders or any of them to take any
         action hereunder;

                  (viii) release all or substantially all of the Collateral
         except as provided in SECTION 10.7(B) or release any Subsidiary
         Guarantor from its obligations under the Guaranty except in connection
         with sale or other disposition permitted by the Loan Documents (or
         permitted pursuant to a waiver or consent of a transaction otherwise
         prohibited by this Agreement); or

                  (ix) amend SECTION 10.7(B) or this SECTION 11.1 or the
         definition of the terms "REQUISITE LENDERS", "REQUISITE REVOLVING
         CREDIT LENDERS", "REQUISITE TERM A LOAN LENDERS", "REQUISITE TERM B
         LOAN LENDERS" or "RATABLE PORTION"; and PROVIDED, FURTHER, (A) that any
         modification of the application of payments to the Term A Loans or Term
         B Loans pursuant to SECTION 2.7 shall require the consent of the
         Requisite Term A Loan Lenders or the Requisite Term B Loan Lenders (as
         the case may be) and any such modification of the application of
         payments to the Revolving Loans pursuant to SECTION 2.7 and (B) that no
         amendment, waiver or consent shall, unless in writing and signed by the
         Administrative Agent in addition to the Lenders required above to take
         such action, affect the rights or duties of the Administrative Agent
         under this Agreement or the other Loan Documents.

                  (b) The Administrative Agent may, but shall have no obligation
to, with the written concurrence of any Lender, execute amendments,
modifications, waivers or consents on behalf of that Lender. Any waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which it was given. No notice to or demand on the Borrower in any
case shall entitle the Borrower to any other or further notice or demand in
similar or other circumstances.

                  SECTION 11.2. ASSIGNMENTS AND PARTICIPATIONS.

                  (a) Each Lender may sell, transfer, negotiate or assign to one
or more Eligible Assignees, or grant a Lien on (provided that upon foreclosure
or other exercise of remedies in respect of such Lien, the holder thereof shall
be subject to all the provisions of this SECTION 11.2), all or a portion of its
rights and obligations hereunder (including all of its rights and obligations
with respect to the Term A Loans, Term B Loans and the Revolving Loan);
PROVIDED, HOWEVER, that (i) (A) if any such assignment shall be of the assigning
Lender's Revolving Loans and Revolving Credit Commitment, such assignment shall

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<PAGE>   90

cover the same percentage of such Lender's Revolving Loans and Revolving Credit
Commitment, and (B) if any such assignment shall be of the assigning Lender's
Term A Loans and Term A Loan Commitment or Term B Loans and Term B Loan
Commitment, such assignment shall cover the same respective percentage of such
Lender's Term A Loans and Term A Loan Commitment or Term B Loans and Term B Loan
Commitment (as the case may be), (ii) the aggregate amount being assigned
pursuant to each such assignment (determined as of the date of the Assignment
and Acceptance with respect to such assignment) shall in no event (if less than
the Assignor's entire interest) be less than $2,500,000 or an integral multiple
of $500,000 in excess thereof, except, in either case, (A) with the consent of
the Borrower and the Administrative Agent or (B) if such assignment is being
made to a Lender or an Affiliate or Approved Fund of such Lender, and (iii) if
such Eligible Assignee is not, prior to the date of such assignment, a Lender or
an Affiliate or Approved Fund of a Lender, such assignment shall be subject to
the prior consent of the Administrative Agent and the Borrower (which consent
shall not be unreasonably withheld or delayed); PROVIDED, HOWEVER, that,
notwithstanding any other provision of this SECTION 11.2, the consent of the
Borrower shall not be required for any assignment which occurs when any Event of
Default shall have occurred and be continuing. Any such assignment need not be
ratable as among the Facilities; PROVIDED, HOWEVER, notwithstanding anything
herein to the contrary each assignment by a Lender of each Loan, on and
following the operation of SECTION 9.2(B), shall cover the same respective
percentage of such Lender's deemed participations in the Term B Loan (including
the Loan Sub-Portion), the Revolving Loans and the Term A Loans.

                  (b) The parties to each assignment shall execute and deliver
to the Administrative Agent, for its acceptance and recording, an Assignment and
Acceptance, together with any Note (if the assigning Lender's Loans are
evidenced by a Note) subject to such assignment. Upon such execution, delivery,
acceptance and recording and the receipt by the Administrative Agent from the
assignee of an assignment fee in the amount of $3,500 from and after the
effective date specified in such Assignment and Acceptance, (i) the assignee
thereunder shall become a party hereto and, to the extent that rights and
obligations under the Loan Documents have been assigned to such assignee
pursuant to such Assignment and Acceptance, have the rights and obligations of a
Lender hereunder and thereunder, and (ii) the assignor thereunder shall, to the
extent that rights and obligations under this Agreement have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights (except those
which survive the payment in full of the Obligations) and be released from its
obligations under the Loan Documents, other than those relating to events or
circumstances occurring prior to such assignment (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender's rights and obligations under the Loan Documents, such Lender shall
cease to be a party hereto).

                  (c) The Administrative Agent shall maintain at its address
referred to in SECTION 11.8 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recording of the names and
addresses of the Lenders and the Commitments of and principal amount of the
Loans owing to each Lender from time to time (the "REGISTER"). The entries in
the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Loan Parties, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register as a Lender for all purposes
of this Agreement. The Register shall be available for inspection by the
Borrower, the Administrative Agent or any Lender at any reasonable time and from
time to time upon reasonable prior notice and the Administrative Agent shall

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provide to the Borrower a copy of the Register promptly following the Borrower's
request from time to time.

                  (d) Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and an assignee, the Administrative Agent shall, if such
Assignment and Acceptance has been completed, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrower. Within five Business Days
after its receipt of such notice, the Borrower shall, if requested by such
assignee, execute and deliver to the Administrative Agent, new Notes to the
order of such assignee in an amount equal to the Commitments and Term A Loans
and Term B Loans assumed by it pursuant to such Assignment and Acceptance and,
if the assigning Lender has surrendered any Note for exchange in connection with
the assignment and has retained Commitments or Term A Loans and Term B Loans
hereunder, new Notes to the order of the assigning Lender in an amount equal to
the Commitments and Term A Loans and Term B Loans retained by it hereunder. Such
new Notes shall be dated the same date as the surrendered Notes and be in
substantially the form of EXHIBIT B-1, B-2 or B-3 hereto, as applicable.

                  (e) In addition to the other assignment rights provided in
this SECTION 11.2, each Lender may pledge or assign a security interest in any
of its rights under this Agreement (including rights to payments of principal or
interest on the Loans) to secure obligations to (i) any Federal Reserve Bank
pursuant to Regulation A of the Federal Reserve Board and (ii) in the case of
any Lender that is a Fund, any holders of obligations owed or Securities issued
by such Lender as security for such obligations or Securities, or any trustee
for, or any other representative of, such holders, and this Section shall not
apply to any such pledge or assignment of a security interest; PROVIDED,
HOWEVER, that no such assignment shall release the assigning Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

                  (f) Each Lender may sell participations to one or more Persons
in or to all or a portion of its rights and obligations under the Loan Documents
(including all its rights and obligations with respect to the Term A Loans, Term
B Loans and Revolving Loans). The terms of such participation shall not, in any
event, require the participant's consent to any amendments, waivers or other
modifications of any provision of any Loan Documents, the consent to any
departure by any Loan Party therefrom, or to the exercising or refraining from
exercising any powers or rights which such Lender may have under or in respect
of the Loan Documents (including the right to enforce the obligations of the
Loan Parties), except if any such amendment, waiver or other modification or
consent would (i) reduce the amount, or postpone any date fixed for, any amount
(whether of principal, interest or fees) payable to such participant under the
Loan Documents, to which such participant would otherwise be entitled under such
participation or (ii) result in the release of all or substantially all of the
Collateral other than in accordance with SECTION 10.7(B). In the event of the
sale of any participation by any Lender, (A) such Lender's obligations under the
Loan Documents shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties for the performance of such obligations, (C)
such Lender shall remain the holder of such Obligations for all purposes of this
Agreement, and (D) the Borrower, the Administrative Agent and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement. Each participant
shall be entitled to the benefits of SECTIONS 2.12(D), 2.13 and 2.14 as if it
were a Lender; PROVIDED, HOWEVER, that anything herein to the contrary
notwithstanding, the Borrower shall not, at any time, be obligated to pay to any

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participant of any interest of any Lender, under SECTION 2.12(D), 2.13 or 2.14,
any sum in excess of the sum which the Borrower would have been obligated to pay
to such Lender in respect of such interest had such participation not been sold.

                  SECTION 11.3. COSTS AND EXPENSES.

                  (a) The Borrower agrees upon demand to pay, or reimburse the
Administrative Agent for, all of the Administrative Agent's reasonable legal,
appraisal, valuation, filing, document duplication and reproduction and
investigation expenses and for all other reasonable out-of-pocket costs and
expenses of every type and nature (including, without limitation, the reasonable
fees, expenses and disbursements of the Administrative Agent's counsel, local
legal counsel, auditors, accountants, appraisers, printers, insurance and
environmental advisers, and other consultants and agents) incurred by the
Administrative Agent in connection with (i) the Administrative Agent's audit and
investigation of the Borrower and its Subsidiaries in connection with the
preparation, negotiation and execution of the Loan Documents and the
Administrative Agent's periodic audits of the Borrower and its Subsidiaries, as
the case may be; (ii) the preparation, negotiation, execution and performance of
this Agreement (including, without limitation, the satisfaction or attempted
satisfaction of any of the conditions set forth in ARTICLE III), the Loan
Documents and any proposal letter or commitment letter issued in connection
therewith and the making of the Loans hereunder; (iii) the creation, perfection
or protection of the Liens under the Loan Documents (including, without
limitation, any reasonable fees and expenses for local counsel in various
jurisdictions); (iv) the ongoing administration of this Agreement and the Loans,
including consultation with attorneys in connection therewith and with respect
to the Administrative Agent's rights and responsibilities hereunder and under
the other Loan Documents; (v) the protection, collection or enforcement of any
of the Obligations or the enforcement of any of the Loan Documents; (vi) the
commencement, defense or intervention in any court proceeding relating in any
way to the Obligations, any Loan Party, any of the Borrower's Subsidiaries, this
Agreement or any of the other Loan Documents (other than in any such proceeding
which is solely among any of the Lenders or any of the Lenders and the
Administrative Agent); (vii) the response to, and preparation for, any subpoena
or request for document production with which the Administrative Agent is served
or deposition or other proceeding in which the Administrative Agent is called to
testify, in each case, relating in any way to the Obligations, any Loan Party,
any of the Borrowers' Subsidiaries, this Agreement or any of the other Loan
Documents; and (viii) any amendments, consents, waivers, assignments,
restatements, or supplements to any of the Loan Documents and the preparation,
negotiation, and execution of the same.

                  (b) The Borrower further agrees to pay or reimburse the
Administrative Agent and each of the Lenders upon demand for all out-of-pocket
costs and expenses, including, without limitation, reasonable attorneys' fees
(including allocated costs of internal counsel and costs of settlement),
incurred by the Administrative Agent or such Lenders (i) in enforcing any Loan
Document or Obligation or any security therefor or exercising or enforcing any
other right or remedy available by reason of an Event of Default; (ii) in
connection with any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a "WORK-OUT" or in any insolvency or
bankruptcy proceeding; (iii) in commencing, defending or intervening in any
litigation or in filing a petition, complaint, answer, motion or other pleadings
in any legal proceeding relating to the Obligations, any Loan Party, any of the
Borrowers' Subsidiaries and related to or arising out of the transactions
contemplated hereby or by any of the other Loan Documents (other than in any
such proceeding which is solely among any of the Lenders or any of the Lenders
and the Administrative Agent); and (iv) in taking any other action in or with
respect to any suit or proceeding (bankruptcy or otherwise) described in CLAUSES
(I) through (III) above.

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                  SECTION 11.4. INDEMNITIES.

                  (a) The Borrower agrees to indemnify and hold harmless the
Administrative Agent, each Lender and each of their respective Affiliates, and
each of the directors, officers, employees, agents, representative, attorneys,
consultants and advisors of or to any of the foregoing (including those retained
in connection with the satisfaction or attempted satisfaction of any of the
conditions set forth in ARTICLE III) (each such Person being an "INDEMNITEE")
from and against any and all claims, damages, liabilities, obligations, losses,
penalties, actions, judgments, suits, costs, disbursements and expenses of any
kind or nature (including fees and disbursements of counsel to any such
Indemnitee) which may be imposed on, incurred by or asserted against any such
Indemnitee in connection with or arising out of any investigation, litigation or
proceeding, whether or not any such Indemnitee is a party thereto, whether
direct, indirect, or consequential and whether based on any federal, state or
local law or other statutory regulation, securities or commercial law or
regulation, or under common law or in equity, or on contract, tort or otherwise,
in any manner relating to or arising out of this Agreement, any other Loan
Document, any Obligation, or any act, event or transaction related or attendant
to any thereof, or the use or intended use of the proceeds of the Loans or in
connection with any investigation of any potential matter covered hereby
(collectively, the "INDEMNIFIED MATTERS"); PROVIDED, HOWEVER, that the Borrower
shall not have any obligation under this SECTION 11.4 to an Indemnitee with
respect to any Indemnified Matter caused by or resulting from the gross
negligence or willful misconduct of that Indemnitee, as determined by a court of
competent jurisdiction in a final non-appealable judgment or order. Without
limiting the foregoing, Indemnified Matters include (i) all Environmental
Liabilities and Costs arising from or connected with the past, present or future
operations of the Borrower or any of its Subsidiaries involving any property
subject to a Collateral Document, or damage to real or personal property or
natural resources or harm or injury alleged to have resulted from any Release of
Contaminants on, upon or into such property or any contiguous real estate; (ii)
any costs or liabilities incurred in connection with any Remedial Action
concerning the Borrower or any of its Subsidiaries; (iii) any costs or
liabilities incurred in connection with any Environmental Lien; (iv) any costs
or liabilities incurred in connection with any other matter under any
Environmental Law, including CERCLA and applicable state property transfer laws,
whether, with respect to any of such matters, such Indemnitee is a mortgagee
pursuant to any leasehold mortgage, a mortgagee in possession, the successor in
interest to the Borrower or any of its Subsidiaries, or the owner, lessee or
operator of any property of the Borrower or any of its Subsidiaries by virtue of
foreclosure, except, with respect to those matters referred to in CLAUSES (I),
(ii), (III) and (IV) above, to the extent incurred following (A) foreclosure by
the Administrative Agent, any Lender, or the Administrative Agent, any Lender
having become the successor in interest to the Borrower or any of its
Subsidiaries, and (B) attributable solely to acts of the Administrative Agent,
such Lender or any agent on behalf of the Administrative Agent or such Lender.

                  (b) The Borrower shall indemnify the Administrative Agent, the
Lenders for, and hold the Administrative Agent, the Lenders harmless from and
against, any and all claims for brokerage commissions, fees and other
compensation made against the Administrative Agent, the Lenders for any broker,
finder or consultant with respect to any agreement, arrangement or understanding
made by or on behalf of any Loan Party or any of its Subsidiaries in connection
with the transactions contemplated by this Agreement.

                  (c) The Borrower agrees that any indemnification or other
protection provided to any Indemnitee pursuant to this Agreement (including
pursuant to this SECTION 11.4) or any other Loan Document shall (i) survive

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<PAGE>   94

payment in full of the Obligations and the termination of this Agreement and
(ii) inure to the benefit of any Person who was at any time an Indemnitee under
this Agreement or any other Loan Document.

                  SECTION 11.5. LIMITATION OF LIABILITY. The Borrower agrees
that no Indemnitee shall have any liability (whether direct or indirect, in
contract, tort or otherwise) to any Loan Party or any of their respective
Subsidiaries or any of their equity holders or creditors for or in connection
with the transactions contemplated hereby and in the other Loan Documents,
except to the extent such liability is found in a final judgment by a court of
competent jurisdiction to have resulted from such Indemnitee's gross negligence
or willful misconduct. In no event, however, shall any Indemnified Party be
liable on any theory of liability for any special, indirect, consequential or
punitive damages, and to the extent permitted by law, the Borrower hereby
waives, releases and agrees (for itself and on behalf of its Subsidiaries) not
to sue upon any such claim for any such damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

                  SECTION 11.6. RIGHT OF SET-OFF. Upon the occurrence and during
the continuance of any Event of Default each Lender and each Affiliate of a
Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender or its Affiliates to or for the
credit or the account of the Borrower against any and all of the Obligations now
or hereafter existing whether or not such Lender shall have made any demand
under this Agreement or any other Loan Document and although such Obligations
may be unmatured. Each Lender agrees promptly to notify the Borrower after any
such set-off and application made by such Lender or its Affiliates; PROVIDED,
HOWEVER, that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of each Lender under this SECTION 11.6
are in addition to the other rights and remedies (including other rights of
set-off) which such Lender may have.

                  SECTION 11.7. SHARING OF PAYMENTS, ETC.

                  (a) If any Lender shall obtain any payment (whether voluntary,
involuntary, through the exercise of any right of set-off or otherwise) of the
Loans owing to it, any interest thereon, fees in respect thereof or amounts due
pursuant to SECTION 11.3 (other than payments pursuant to SECTION 2.12, 2.13 or
2.14) in excess of its Ratable Portion of all payments of such Obligations
obtained by all the Lenders, such Lender (a "PURCHASING LENDER") shall forthwith
purchase from the other Lenders (each, a "SELLING LENDER") such participations
in their Loans or other Obligations as shall be necessary to cause such
Purchasing Lender to share the excess payment ratably with each of them.

                  (b) If all or any portion of any payment received by a
Purchasing Lender is thereafter recovered from such Purchasing Lender, such
purchase from each Selling Lender shall be rescinded and such Selling Lender
shall repay to the Purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such Selling Lender's ratable share
(according to the proportion of (i) the amount of such Selling Lender's required
repayment to (ii) the total amount so recovered from the Purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered.

                  (c) The Borrower agrees that any Purchasing Lender so
purchasing a participation from a Selling Lender pursuant to this SECTION 11.7
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as

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<PAGE>   95

if such Lender were the direct creditor of the Borrower in the amount of such
participation.

                  SECTION 11.8. NOTICES, ETC. All notices, demands, requests and
other communications provided for in this Agreement shall be given in writing,
or by any telecommunication device capable of creating a written record, and
addressed to the party to be notified as follows:

                  (a)      if to the Borrower:

                           Paxson Communications Corporation
                           601 Clearwater Park Road
                           West Palm Beach, FL  33401
                           Attention:    Thomas E. Severson, Jr., Chief
                                         Financial Officer, with a copy to
                                         Anthony L. Morrison, Esq. General
                                         Counsel
                           Telecopy no:  561-659-4754

                  (b)      if to any Lender, at its Domestic Lending Office
specified opposite its name on SCHEDULE II or on the signature page of any
applicable Assignment and Acceptance;

                  (c)      if to the Administrative Agent:

                           Citicorp USA, Inc.
                           2 Penns Way, Suite 200
                           New Castle, DE  19720
                           Attention:       Christian Laughton
                           Telecopy no:     302 894 6120

                           with a copy to:

                           390 Greenwich Street, First Floor
                           New York, NY  10013
                           Attention:       Mark Floyd
                           Telecopy no:     (212) 723 8547

or at such other address as shall be notified in writing (i) in the case of the
Borrower and the Administrative Agent, to the other parties and (ii) in the case
of all other parties, to the Borrower and the Administrative Agent. All such
notices and communications shall be effective upon personal delivery (if
delivered by hand, including any overnight courier service), when deposited in
the mails (if sent by mail), or when properly transmitted (if sent by a
telecommunications device); PROVIDED, HOWEVER, that notices and communications
to the Administrative Agent pursuant to ARTICLE II or X shall not be effective
until received by the Administrative Agent.

                  SECTION 11.9. NO WAIVER; REMEDIES. No failure on the part of
any Lender or the Administrative Agent to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

                  SECTION 11.10. BINDING EFFECT. This Agreement shall become
effective when it shall have been executed by the Borrower and the
Administrative Agent and when the Administrative Agent shall have been notified
by each Lender that such Lender has executed it and thereafter shall be binding

                                       89
<PAGE>   96

upon and inure to the benefit of the Borrower, the Administrative Agent and each
Lender and their respective successors and assigns, except that the Borrower
shall not have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Lenders.

                  SECTION 11.11. GOVERNING LAW. This Agreement and the rights
and obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the law of the State of New York.

                  SECTION 11.12. SUBMISSION TO JURISDICTION; SERVICE OF PROCESS.

                  (a) Any legal action or proceeding with respect to this
Agreement or any other Loan Document may be brought in the courts of the State
of New York or of the United States of America for the Southern District of New
York, and, by execution and delivery of this Agreement, the Borrower hereby
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. The parties hereto
hereby irrevocably waive any objection, including any objection to the laying of
venue or based on the grounds of FORUM NON CONVENIENS, which any of them may now
or hereafter have to the bringing of any such action or proceeding in such
respective jurisdictions.

                  (b) The Borrower hereby irrevocably consents to the service of
any and all legal process, summons, notices and documents in any suit, action or
proceeding brought in the United States of America arising out of or in
connection with this Agreement or any of the other Loan Documents by the mailing
(by registered or certified mail, postage prepaid) or delivering of a copy of
such process to the Borrower at its address specified in SECTION 11.8. The
Borrower agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.

                  (c) Nothing contained in this SECTION 11.12 shall affect the
right of the Administrative Agent or any Lender to serve process in any other
manner permitted by law or commence legal proceedings or otherwise proceed
against the Borrower or any other Loan Party in any other jurisdiction.

                  (d) If for the purposes of obtaining judgment in any court it
is necessary to convert a sum due hereunder in Dollars into another currency,
the parties hereto agree, to the fullest extent that they may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase Dollars with such
other currency at the spot rate of exchange quoted by the Administrative Agent
at 11:00 a.m. (New York time) on the Business Day preceding that on which final
judgment is given, for the purchase of Dollars, for delivery two Business Days
thereafter.

                  SECTION 11.13. WAIVER OF JURY TRIAL. EACH OF THE
ADMINISTRATIVE AGENT, THE LENDERS AND THE BORROWER IRREVOCABLY WAIVES TRIAL BY
JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT.

                  SECTION 11.14. MARSHALING; PAYMENTS SET ASIDE. Neither the
Administrative Agent nor any Lender shall be under any obligation to marshal any
assets in favor of the Borrower or any other party or against or in payment of
any or all of the Obligations. To the extent that the Borrower makes a payment
or payments to the Administrative Agent, the Lenders or any of such Persons
receives payment from the proceeds of the Collateral or exercise their rights of
setoff, and such payment or payments or the proceeds of such enforcement or
setoff or any part thereof are subsequently invalidated, declared to be

                                       90
<PAGE>   97

fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other party, then to the extent of such recovery, the obligation
or part thereof originally intended to be satisfied, and all Liens, right and
remedies therefor, shall be revived and continued in full force and effect as if
such payment had not been made or such enforcement or setoff had not occurred.

                  SECTION 11.15. SECTION TITLES. The Section titles contained in
this Agreement are and shall be without substantive meaning or content of any
kind whatsoever and are not a part of the agreement between the parties hereto.

                  SECTION 11.16. EXECUTION IN COUNTERPARTS. This Agreement may
be executed in any number of counterparts and by different parties in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are attached to the same
document.

                  SECTION 11.17. ENTIRE AGREEMENT. This Agreement, together with
all of the other Loan Documents and all certificates and documents delivered
hereunder or thereunder, embodies the entire agreement of the parties and
supersedes all prior agreements and understandings relating to the subject
matter hereof. Delivery of an executed signature page of this Agreement by
facsimile transmission shall be as effective as delivery of a manually executed
counterpart hereof. A set of the copies of this Agreement signed by all parties
shall be lodged with the Borrower and the Administrative Agent.

                  SECTION 11.18. CONFIDENTIALITY. Each Lender and the
Administrative Agent agree to keep information obtained by it pursuant hereto
and the other Loan Documents confidential in accordance with such Lender's or
the Administrative Agent's, as the case may be, customary practices and agrees
that it will only use such information in connection with the transactions
contemplated by this Agreement and not disclose any of such information other
than (a) to such Lender's or the Administrative Agent's, as the case may be,
employees, representatives and agents who are or are expected to be involved in
the evaluation of such information in connection with the transactions
contemplated by this Agreement and who are advised of the confidential nature of
such information, (b) to the extent such information presently is or hereafter
becomes available to such Lender or the Administrative Agent, as the case may
be, on a non-confidential basis from a source other than the Borrower, (c) to
the extent disclosure is required by law, regulation or judicial order or
requested or required by bank regulators or auditors, (d) to assignees,
participants or direct or indirect swap counterparties or potential assignees,
participants or direct or indirect swap counterparties and their respective
professional advisors who each agree to be bound by the provisions of this
SECTION 11.18, or (e) to the national association of insurance commissioners or
any similar organization or any nationally recognized rating agency (who each
agree to be bound by the provisions of this SECTION 11.18), to the extent
required by any of the foregoing with respect to a Lender's investment portfolio
in connection with ratings to be issued with respect to such Lender.

                  SECTION 11.19. DESIGNATED SENIOR DEBT. The Borrower hereby
designates the Obligations as "DESIGNATED SENIOR DEBT" as such term is defined
in, and for the purposes of, the Preferred Stock Documents and the Subordinated
Debt Documents.

                                       91
<PAGE>   98

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                                   PAXSON COMMUNICATIONS CORPORATION
                                     AS BORROWER

                                   By:
                                         --------------------------------------
                                         TITLE: SENIOR VICE PRESIDENT, CHIEF
                                                FINANCIAL OFFICER AND
                                                TREASURER

                                   CITICORP USA, INC.
                                     ADMINISTRATIVE AGENT

                                   By:
                                         --------------------------------------
                                         TITLE:

                                   LENDERS

                                   CITICORP USA, INC.

                                   By:
                                         --------------------------------------
                                         TITLE:

                                   UNION BANK OF CALIFORNIA, N.A.

                                   By:
                                         --------------------------------------
                                         TITLE:

                                   CIBC INC.

                                   By:
                                         --------------------------------------
                                         TITLE:

                                   GENERAL ELECTRIC CAPITAL CORPORATION

                                   By:
                                         --------------------------------------
                                         TITLE:

                                   [INSERT NAME OF LENDER]

                                   By:
                                         --------------------------------------
                                         TITLE:

                                       92

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