Document:

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                                                                   Exhibit 10.58

                           ASSET PURCHASE AGREEMENT
                           ------------------------

     THIS ASSET PURCHASE AGREEMENT (this "Agreement") is made as of March 11,
2000, among the company or companies designated as Seller on the signature page
hereto (collectively, "Seller") and the company or companies designated as Buyer
on the signature page hereto (collectively, "Buyer").

                                   RECITALS
                                   --------

     A.   Seller owns and operates the following radio broadcast stations
(collectively, the "Stations" and each a "Station") pursuant to certain
authorizations issued by the Federal Communications Commission (the "FCC"):

                           KMJQ(FM), Houston, Texas
                           KBXX(FM), Houston, Texas
                       WVCG (AM), Coral Gables, Florida
                           WZAK(FM), Cleveland, Ohio
                       WJMO(AM), Cleveland Heights, Ohio
KKBT(FM), Los Angeles (excluding the FCC licenses, transmitter/antenna equipment
                          and transmitter/tower site)
         KCMG(FM), Los Angeles (FCC licenses (excluding call letters),
transmitter/antenna equipment and transmitter/tower site only to be conveyed to
                                    Buyer)
                            KBFB(FM), Dallas, Texas
                       WJMZ-FM, Anderson, South Carolina
                        WFXC-FM, Durham, North Carolina
                       WFXK-FM, Tarboro, North Carolina
                    WNNL-FM, Farquay-Varina, North Carolina
                        WQOK-FM, South Boston, Virginia

     The definition of "Stations" with respect to KKBT(FM) does not refer to the
FCC licenses, transmitter/antenna equipment and transmitter/tower site, and with
respect to KCMG(FM) refers only to the FCC licenses (excluding call letters),
transmitter/antenna equipment and transmitter/tower site.

     B.   Subject to the terms and conditions set forth herein, Buyer desires
to acquire the Station Assets (defined below).

     C.   Clear Channel Communications, Inc. and AMFM Inc. (Seller's parents)
and CCU Merger Sub, Inc. are parties to an Agreement and Plan of Merger dated
October 2, 1999 (the "AMFM Agreement").

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                                   AGREEMENT
                                   ---------

     NOW, THEREFORE, taking the foregoing into account, and in consideration of
the mutual covenants and agreements set forth herein, the parties, intending to
be legally bound, hereby agree as follows

ARTICLE 1:  PURCHASE OF ASSETS
            ------------------

     1.1.   Station Assets.  On the terms and subject to the conditions hereof,
            --------------
on the Closing Date (defined below), Seller shall sell, assign, transfer, convey
and deliver to Buyer, and Buyer shall purchase and acquire from Seller, all of
the right, title and interest of Seller in and to all of the assets, properties,
interests and rights of Seller of whatsoever kind and nature, real and personal,
tangible and intangible, which are used or held for use exclusively in the
operation of the Stations and specifically described in this Section 1.1, but
excluding the Excluded Assets as hereafter defined (the "Station Assets"):

            (a)  all licenses, permits and other authorizations which are issued
to Seller by the FCC with respect to the Stations, other than the licenses,
permits and other authorization issued to Seller by the FCC with respect to
KKBT-FM, Los Angeles (except for the KKBT call letters which will be conveyed to
Buyer) (the "FCC Licenses") and described on Schedule 1.1(a), including any
                                             ---------------
renewals or modifications thereof between the date hereof and Closing;

            (b)  all equipment, electrical devices, antennae, cables, tools,
hardware, office furniture and fixtures, office materials and supplies,
inventory, motor vehicles, spare parts and other tangible personal property of
every kind and description which are used or held for use exclusively in the
operation of the Stations and listed on Schedule 1.1(b), except any retirements
                                        ---------------
or dispositions thereof made between the date hereof and Closing in the ordinary
course of business and consistent with past practices of Seller and any
equipment, inventory and personal property located at the KKBT-FM tower and/or
transmitter site (the "Tangible Personal Property");

            (c)  all Time Sales Agreements and Trade Agreements (both defined in
Section 2.1), Real Property Leases (defined in Section 7.7), and other
contracts, agreements, and leases which are used in the operation of the
Stations and listed on Schedule 1.1(c), together with all contracts, agreements,
                       ---------------
and leases made between the date hereof and Closing in the ordinary course of
business that are used in the operation of the Stations (the "Station
Contracts"), provided that Seller will not enter into any new Station
Contract(s) with a (i) term greater than one year, (ii) an individual aggregate
value greater than $ 50,000 per market or (iii) total aggregate value greater
than $250,000 for the Stations combined without obtaining Buyer's prior consent,
or enter into any new Trade Agreements under which the aggregate barter payable
exceeds the aggregate barter receivable on a per market basis without obtaining
Buyer's prior consent;

            (d)  all of Seller's rights in and to the Stations' call letters and
Seller's rights in

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and to the trademarks, trade names, service marks, franchises, copyrights,
computer software, programs and programming material, jingles, slogans, logos,
domain names, registrations, websites and other intangible property which are
used or held for use exclusively in the operation of the Stations, other than
the KCMG call letters and intellectual property associated with the current
operation of KCMG, and listed on Schedule 1.1(d) (the "Intangible Property");
                                 --------------

            (e)  Seller's rights in and to all the files, documents, records,
and books of account (or copies thereof) relating exclusively to the operation
of the Stations, including the Stations' local public files, programming
information and studies, blueprints, technical information and engineering data,
advertising studies, marketing and demographic data, sales correspondence, lists
of advertisers, credit and sales reports, and logs, but excluding records
relating to Excluded Assets (defined below), and access to records described in
Section 1.2(e) that pertain to the Stations; and

            (f)  any real property which is used exclusively in the operation of
the Stations (including any of Seller's appurtenant easements and improvements
located thereon) and described on Schedule 1.1(f) (the "Real Property").
                                  ---------------

                 The Station Assets shall be transferred to Buyer free and clear
of liens, claims and encumbrances ("Liens") except for (i) Assumed Obligations
(defined in Section 2.1), (ii) liens for taxes not yet due and payable and for
which Buyer receives a credit pursuant to Section 3.3, (iii) such liens (not
related to Seller's indebtedness), easements, rights of way, building and use
restrictions, exceptions, reservations and limitations that do not in any
material respect detract from the value of the property subject thereto or
impair the use thereof in the ordinary course of the business of the Stations,
and (iv) any items listed on Schedule 1.1(b) (collectively, "Permitted Liens").
                             ---------------

     1.2.   Excluded Assets.  Notwithstanding anything to the contrary contained
            ---------------
herein, the Station Assets shall not include the following assets along with all
rights, title and interest therein (the "Excluded Assets"):

            (a)  all cash and cash equivalents of Seller, including without
limitation certificates of deposit, commercial paper, treasury bills, marketable
securities, asset or money market accounts and all such similar accounts or
investments;

            (b)  all accounts receivable or notes receivable arising in the
operation of the Stations prior to Closing;

            (c)  all tangible and intangible personal property of Seller
disposed of or consumed in the ordinary course of business and consistent with
past practices of Seller between the date of this Agreement and Closing;

            (d)  all Station Contracts that terminate or expire prior to Closing
in the ordinary course of business of Seller, except which Seller is required to
extend pursuant to

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Section 9.1(g);

            (e)  Seller's name, corporate minute books, charter documents,
corporate stock record books and such other books and records as pertain to the
organization, existence or share capitalization of Seller, duplicate copies of
the records of the Stations, and all records not relating exclusively to the
operation of the Stations;

            (f)  contracts of insurance, and all insurance proceeds or claims
made thereunder except to the extent such proceeds are paid to Buyer pursuant to
Section 17.1;

            (g)  except as provided in Section 10.4, all pension, profit sharing
or cash or deferred (Section 401(k)) plans and trusts and the assets thereof and
any other employee benefit plan or arrangement and the assets thereof, if any,
maintained by Seller;

            (h)  all Seller's owned FM towers and FM tower sites, all rights,
properties and assets described on Schedule 1.2(h), and all rights, properties
                                   ---------------
and assets not specifically described in Section 1.1;

            (i)  all of Seller's right, title and interest in and to the call
letters KCMG-FM and all intellectual property currently used in the operation of
KCMG-FM by Seller;

            (j)  all of Seller's right, title and interest in and to the KKBT
tower and/or transmitter site; and

            (k)  all of Seller's right, title and interest in the KKBT
intellectual property as described on Schedule 1.2(h).
                                      ---------------

     1.3.   Lease Agreements. At Closing, Buyer and Seller shall negotiate in
            ----------------
good faith and enter into the lease agreements described on Schedule 1.2(h)
                                                            ---------------
pursuant to leases substantially in the form of Exhibit A (tower lease), Exhibit
                                                ---------                -------
A-1 (tower lease for WZAK) and Exhibit A-2 (Raleigh studio lease) attached
---                            -----------
hereto.

     1.4.   KKBT Intellectual Property. At Closing, Buyer and Seller to enter
            --------------------------
into a non-exclusive perpetual license agreement whereby Seller grants Buyer the
non-exclusive right to use the KKBT intellectual property described on Schedule
                                                                       --------
1.2(h) ("KKBT I/P") for $1.00 per year in any market that Seller does not use or
------
has not licensed the KKBT I/P to a third party. Seller may use or license the
KKBT I/P for use in any market in which Buyer does not use the KKBT I/P, and
such use or license for use by Seller will preclude Buyer's use of the KKBT I/P
in such market, provided that Buyer shall have exclusive rights to the KKBT I/P
in the Los Angeles market and in any other market where the KKBT I/P is licensed
to Buyer.

ARTICLE 2:  ASSUMPTION OF OBLIGATIONS
            -------------------------

     2.1.   Assumed Obligations. On the Closing Date, Buyer shall assume the
            -------------------
obligations

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of Seller (the "Assumed Obligations") arising after Closing under the Station
Contracts, including without limitation all agreements for the sale of
advertising time on the Stations for cash at commercially reasonable rates in
the ordinary course of business ("Time Sales Agreements") and all agreements for
the sale of advertising time on the Stations for non-cash consideration ("Trade
Agreements").

     2.2.   Retained Obligations. Buyer does not assume or agree to discharge or
            --------------------
perform and will not be deemed by reason of the execution and delivery of this
Agreement or any agreement, instrument or document delivered pursuant to or in
connection with this Agreement or otherwise by reason of the consummation of the
transactions contemplated hereby, to have assumed or to have agreed to discharge
or perform any liabilities, obligations or commitments of Seller of any nature
whatsoever whether accrued, absolute, contingent or otherwise and whether or not
disclosed to Buyer, other than the Assumed Obligations (the "Retained
Obligations").

ARTICLE 3:  PURCHASE PRICE
            --------------

     3.1.   Purchase Price. In consideration for the sale of the Station Assets
            --------------
to Buyer, in addition to the assumption of the Assumed Obligations, Buyer shall
at Closing (defined below) deliver to Seller by wire transfer of immediately
available funds, ONE BILLION THREE HUNDRED TWO MILLION FIVE HUNDRED THOUSAND
DOLLARS $1,302,500,000), subject to adjustment pursuant to Sections 3.3, 10.4
and 10.7 (the "Purchase Price").

     3.2.   Deposit. Within one (1) business day from the date of this Agreement
            -------
with no Cure Period as defined below, Buyer shall deposit an amount equal to 10%
of the Purchase Price (the "Deposit") with NationsBank/Bank of America (the
"Escrow Agent") pursuant to the Escrow Agreement, attached hereto as Exhibit C
                                                                     ---------
(the "Escrow Agreement") of even date herewith among Buyer, Seller and the
Escrow Agent. At Closing, the Deposit shall be applied to the Purchase Price and
any interest accrued thereon shall be disbursed to Buyer. If this Agreement is
terminated by Seller due to Buyer's failure to consummate the Closing on the
Closing Date or if this Agreement is otherwise terminated by Seller pursuant to
Section 16.1(c), the Deposit and any interest accrued thereon shall be disbursed
to Seller as partial payment of liquidated damages pursuant to Section 16.3. If
this Agreement is terminated for any other reason, the Deposit and any interest
accrued thereon shall be disbursed to Buyer.

     3.3.   Prorations and Adjustments. Except as otherwise provided herein, all
            --------------------------
deposits, reserves and prepaid and deferred income and expenses relating to the
Station Assets or the Assumed Obligations and arising from the conduct of the
business and operations of the Stations shall be prorated between Buyer and
Seller in accordance with generally accepted accounting principles as of 11:59
p.m. on the date immediately preceding the Closing Date. Such prorations shall
include, without limitation, all ad valorem, real estate and other property
taxes (but excluding taxes arising by reason of the transfer of the Station
Assets as contemplated hereby which shall be paid as set forth in Section 13.1),
business and license fees, music and other license fees (including any
retroactive adjustments thereof), utility expenses, amounts due or to

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become due under Station Contracts, rents, lease payments and similar prepaid
and deferred items. Real estate taxes shall be apportioned on the basis of taxes
assessed for the preceding year, with a reapportionment, if any, as soon as the
new tax rate and valuation can be ascertained. Except as otherwise provided
herein, the prorations and adjustments contemplated by this Section 3.3, to the
extent practicable, shall be made on the Closing Date. As to those prorations
and adjustments not capable of being ascertained on the Closing Date, an
adjustment and proration shall be made within ninety (90) calendar days of the
Closing Date. In the event of any disputes between the parties as to such
adjustments, the amounts not in dispute shall nonetheless be paid at the time
provided herein and such disputes shall be conclusively determined within thirty
(30) days thereafter by an independent certified public accountant mutually
acceptable to the parties, and the fees and expenses of such accountant shall be
paid one-half by Seller and one-half by Buyer.

     3.4.   Allocation. The Purchase Price shall be allocated among the Station
            ----------
Assets in a manner as mutually agreed between the parties based upon an
appraisal prepared by Bond & Pecaro (who shall be jointly retained by Seller and
Buyer with respect to the Stations and whose fees shall be paid one-half by
Seller and one-half by Buyer). Seller and Buyer agree to use the allocations
determined pursuant to this Section 3.4 for all tax purposes, including without
limitation, those matters subject to Section 1060 of the Internal Revenue Code
of 1986, as amended; such appraisal shall be completed on the earlier of (i) one
hundred eighty (180) days following the Closing, or (ii) December 31, 2000.

ARTICLE 4:  CLOSING
            -------

     4.1.   Closing. The consummation of the sale and If Closing occurs prior to
            -------
the FCC Consent purchase of the Station Assets (the "Closing") becoming a final
order (i.e., no longer shall occur on a date (the "Closing Date") and at subject
to appeal), and prior to such a time and place designated solely by Seller
finality the FCC Consent is reversed or after FCC Consent (defined below),
subject to otherwise set aside pursuant to a final order satisfaction or waiver
of the conditions to of the FCC (or court of competent Closing contained herein
(other than those to be jurisdiction), then the parties shall comply satisfied
at Closing). Seller shall provide with such order in a manner that otherwise
Buyer with notice of the Closing Date at least complies with applicable law and
returns the three (3) business days prior to Closing, parties to the status quo
ante in all however, Seller reserves the right to extend the material respects
(it being understood that Closing Date without penalty. If requested by in such
event Buyer may designate one or more Seller, prior to Closing the parties shall
hold a third parties as the transferees of the pre-closing conference at a time
and place Stations). designated by Seller, at which the parties shall provide
(for review only) all documents to be delivered at Closing under this Agreement,
each duly executed but undated, and otherwise review their ability to timely
consummate the Closing.

ARTICLE 5:  GOVERNMENTAL CONSENTS
            ---------------------

     Closing is subject to and conditioned upon (i) prior FCC consent (the "FCC
Consent") to

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the assignment of the FCC Licenses to Buyer, (ii) United States Department of
Justice ("DOJ") prior approval (the "DOJ Consent") of the transactions
contemplated hereby, including without limitation any such approval as may be
necessary to enable Seller to consummate the merger under the AMFM Agreement,
and (iii) expiration or termination of any applicable waiting period ("HSR
Clearance") under the HSR Act (defined below).

     5.1.   FCC. On a date designated by Seller, Buyer and Seller shall file an
            ---
application with the FCC (the "FCC Application") requesting the FCC Consent.
Buyer and Seller shall diligently prosecute the FCC Application and otherwise
use their best efforts to obtain the FCC Consent as soon as possible. If the FCC
Consent imposes upon Buyer any condition (including without limitation any
divestiture condition), Buyer shall timely comply therewith.

     5.2.   HSR. If not previously filed, then within five (5) business days
            ---
after the execution of this Agreement, Buyer and Seller shall make any required
filings with the Federal Trade Commission and the DOJ pursuant to the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act")
with respect to the transactions contemplated hereby (including a request for
early termination of the waiting period thereunder), and shall thereafter
promptly respond to all requests received from such agencies for additional
information or documentation.

     5.3.   General. Buyer and Seller shall notify each other of all documents
            -------
filed with or received from any governmental agency with respect to this
Agreement or the transactions contemplated hereby. Buyer and Seller shall
furnish each other with such information and assistance as the other may
reasonably request in connection with their preparation of any governmental
filing hereunder. If Buyer becomes aware of any fact relating to it which would
prevent or delay the FCC Consent, the DOJ Consent or HSR Clearance, Buyer shall
promptly notify Seller thereof and take such steps as necessary by the Closing
Date to remove such impediment, including but not limited to divesting any
stations and terminating any agreements to acquire or program or market any
stations.

ARTICLE 6:  REPRESENTATIONS AND WARRANTIES OF BUYER
            ---------------------------------------

     Buyer hereby makes the following representations and warranties to Seller:

     6.1.   Organization and Standing. Buyer is duly organized, validly existing
            -------------------------
and in good standing under the laws of the jurisdiction of its organization, and
on the Closing Date will be qualified to do business in each jurisdiction in
which the Station Assets are located. Buyer has the requisite power and
authority to execute and deliver this Agreement and all of the other agreements
and instruments to be executed and delivered by Buyer pursuant hereto
(collectively, the "Buyer Ancillary Agreements"), to consummate the transactions
contemplated hereby and thereby and to comply with the terms, conditions and
provisions hereof and thereof.

     6.2.   Authorization. The execution, delivery and performance of this
            -------------
Agreement and the Buyer Ancillary Agreements by Buyer have been duly authorized
and approved by all

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necessary action of Buyer and do not require any further authorization or
consent of Buyer. This Agreement is, and each Buyer Ancillary Agreement when
executed and delivered by Buyer and the other parties thereto will be, a legal,
valid and binding agreement of Buyer enforceable in accordance with its
respective terms, except in each case as such enforceability may be limited by
bankruptcy, moratorium, insolvency, reorganization or other similar laws
affecting or limiting the enforcement of creditors' rights generally and except
as such enforceability is subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     6.3.   No Conflicts.  Neither the execution and delivery by Buyer of this
            ------------
Agreement and the Buyer Ancillary Agreements or the consummation by Buyer of any
of the transactions contemplated hereby or thereby nor compliance by Buyer with
or fulfillment by Buyer of the terms, conditions and provisions hereof or
thereof will: (i) conflict with any organizational documents of Buyer or any
law, judgment, order or decree to which Buyer is subject; or (ii) require the
approval, consent, authorization or act of, or the making by Buyer of any
declaration, filing or registration with, any third party or any foreign,
federal, state or local court, governmental or regulatory authority or body,
except the FCC Consent and DOJ Consent, and, if applicable, HSR Clearance.

     6.4.   Qualification.  Buyer is legally, financially and otherwise
            -------------
qualified to be the licensee of, acquire, own and operate the Stations under the
Communications Act of 1934, as amended (the "Communications Act") and the rules,
regulations and written policies of the FCC. There are no facts that would,
under existing law and the existing rules, regulations, written policies and
procedures of the FCC, disqualify Buyer as an assignee of the FCC Licenses or as
the owner and operator of the Stations. No waiver of any FCC rule or written
policy on behalf of Buyer is necessary for the FCC Consent to be obtained. There
is no action, suit or proceeding pending or threatened against Buyer which
questions the legality or propriety of the transactions contemplated by this
Agreement or could materially adversely affect Buyer's ability to perform its
obligations hereunder. Buyer will have available on the Closing Date sufficient
funds to enable it to consummate the transactions contemplated hereby.

     6.5.   No Finder. No broker, finder or other person is entitled to a
            ---------
commission, brokerage fee or other similar payment in connection with this
Agreement or the transactions contemplated hereby as a result of any agreement
or action of Buyer or any party acting on Buyer's behalf for which Seller could
become liable or obligated.

ARTICLE 7:  REPRESENTATIONS AND WARRANTIES OF SELLER
            ----------------------------------------

     Seller makes the following representations and warranties to Buyer:

     7.1.   Organization. Seller is duly organized, validly existing and in good
            ------------
standing under the laws of the jurisdiction of its organization, and is
qualified to do business in the applicable jurisdiction in which its Station
Assets are located. Seller has the requisite power and authority to execute and
deliver this Agreement and all of the other agreements and instruments

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to be executed and delivered by Seller pursuant hereto (collectively, the
"Seller Ancillary Agreements"), to consummate the transactions contemplated
hereby and thereby and to comply with the terms, conditions and provisions
hereof and thereof.

     7.2.   Authorization.  The execution, delivery and performance of this
            -------------
Agreement and the Seller Ancillary Agreements by Seller have been duly
authorized and approved by all necessary action of Seller and do not require any
further authorization or consent of Seller. This Agreement is, and each Seller
Ancillary Agreement when executed and delivered by Seller and the other parties
thereto will be, a legal, valid and binding agreement of Seller enforceable in
accordance with its respective terms, except in each case as such enforceability
may be limited by bankruptcy, moratorium, insolvency, reorganization or other
similar laws affecting or limiting the enforcement of creditors' rights
generally and except as such enforceability is subject to general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

     7.3.   No Conflicts. Neither the execution and delivery by Seller of this
            ------------
Agreement and the Seller Ancillary Agreements or the consummation by Seller of
any of the transactions contemplated hereby or thereby nor compliance by Seller
with or fulfillment by Seller of the terms, conditions and provisions hereof or
thereof will: (i) conflict with any organizational documents of Seller or any
law, judgment, order, or decree to which Seller is subject or, except as set
forth on Schedule 1.1(c), any Station Contract; or (ii) require the approval,
         ---------------
consent, authorization or act of, or the making by Seller of any declaration,
filing or registration with, any third party or any foreign, federal, state or
local court, governmental or regulatory authority or body, except the FCC
Consent and DOJ Consent and, if applicable, HSR Clearance.

     7.4.   FCC Licenses. Seller (or one of the companies comprising Seller) is
            ------------
the holder of the FCC Licenses described on Schedule 1.1(a). The FCC Licenses
                                            ---------------
comprise all of those licenses from the FCC materially necessary to operate the
Stations as currently operated, are in full force and effect and have not been
revoked, suspended, canceled, rescinded or terminated and have not expired.
There is not pending any action by or before the FCC to revoke, suspend, cancel,
rescind or materially adversely modify any of the FCC Licenses (other than
proceedings to amend FCC rules of general applicability), and there is not now
issued or outstanding, by or before the FCC, any order to show cause, notice of
violation, notice of apparent liability, or notice of forfeiture against Seller
with respect to the Stations. The Stations are operating in compliance in all
material respects with the FCC Licenses, the Communications Act, and the rules,
regulations and policies of the FCC.

     7.5.   Taxes. Seller has, in respect of the Stations' business, filed all
            -----
foreign, federal, state, county and local income, excise, property, sales, use,
franchise and other tax returns and reports which are required to have been
filed by it under applicable law and has paid all taxes which have become due
pursuant to such returns or pursuant to any assessments which have become
payable. Seller agrees to indemnify Buyer for any costs or expenses assessed
against or incurred by Buyer as a result of any tax payment or lien related to
Stations' business.

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     7.6.   Personal Property. Schedule 1.1(b) contains a list of all material
            -----------------  ---------------
items of Tangible Personal Property included in the Station Assets. Seller has
title to the Tangible Personal Property free and clear of Liens other than
Permitted Liens. The Tangible Personal Property is in good condition and working
order, subject to normal wear and tear.

     7.7.   Real Property. Schedule 1.1(f) contains a description of all Real
            -------------  ---------------
Property included in the Station Assets. Seller has fee simple title to the
owned Real Property ("Owned Real Property") free and clear of Liens other than
Permitted Liens. Schedule 1.1(f) includes a description of each lease of Real
                 ---------------
Property or similar agreement included in the Station Assets (the "Real Property
Leases"). The Owned Real Property includes, and the Real Property Leases
provide, access to the Stations' facilities. To Seller's knowledge, the Real
Property is not subject to any suit for condemnation or other taking by any
public authority.

     7.8.   Contracts. Each of the Station Contracts (including without
            ---------
limitation each of the Real Property Leases), as well as licenses with respect
to the Intangible Property, is in effect and is binding upon Seller and, to
Seller's knowledge, the other parties thereto (subject to bankruptcy,
insolvency, reorganization or other similar laws relating to or affecting the
enforcement of creditors' rights generally). Seller has performed its
obligations under each of the Station Contracts in all material respects, and is
not in material default thereunder, and to Seller's knowledge, no other party to
any of the Station Contracts is in default thereunder in any material respect.

     7.9.   Environmental. Except as set forth in any environmental report
            -------------
delivered by Seller to Buyer prior to the date of this Agreement and except as
set forth on Schedule 1.1(f), to Seller's knowledge, no hazardous or toxic
             ---------------
substance or waste regulated under any applicable environmental, health or
safety law has been generated, stored, transported or released on, in, from or
to the Real Property included in the Station Assets. Except as set forth in any
environmental report delivered by Seller to Buyer prior to the date of this
Agreement and except as set forth on Schedule 1.1(f), to Seller's knowledge,
                                     ---------------
Seller has complied in all material respects with all environmental, health and
safety laws applicable to the Stations.

     7.10.  Intangible Property. Schedule 1.1(d) contains a description of the
            -------------------  ---------------
material Intangible Property included in the Station Assets. Except as set forth
on Schedule 1.1(d), Seller has received no notice of any claim that its use of
   ---------------
the Intangible Property infringes upon any third party rights. Except as set
forth on Schedule 1.1(d), Seller owns or has the right to use through valid
         ---------------
licensing agreements the Intangible Property free and clear of Liens other than
Permitted Liens.

     7.11.  Compliance with Law. Seller has complied in all material respects
            -------------------
with all laws, regulations, rules, writs, injunctions, ordinances, franchises,
decrees or orders of any court or of any foreign, federal, state, municipal or
other governmental authority which are applicable to the operation of the
Stations. There is no action, suit or proceeding pending or threatened against
Seller in respect of the Stations that will subject Buyer to liability or which
questions the legality

                                       10
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or propriety of the transactions contemplated by this Agreement. To Seller's
knowledge, there are no governmental claims or investigations pending or
threatened against Seller in respect of the Stations (except those affecting the
industry generally).

     7.12.  No Finder. No broker, finder or other person is entitled to a
            ---------
commission, brokerage fee or other similar payment in connection with this
Agreement or the transactions contemplated hereby as a result of any agreement
or action of Seller or any party acting on Seller's behalf.

     7.13.  Financial Statements. Seller has delivered to Buyer copies of the
            --------------------
unaudited results of operations of the Stations for the twelve months ended
December 30, 1998 and 1999, prepared, to the best of Seller's knowledge,
materially in accordance with Generally Accepted Accounting Principles. Seller
will, each month following the date hereof, provide to Buyer copies of the
unaudited results of operations of the Stations for each month between the date
hereof and the Closing Date prepared in accordance with the books and records of
the Stations, within thirty (30) days of the end of each month.

     7.14.  Collective Bargaining Agreements. Except as disclosed on Schedule
            --------------------------------
1.1(c) with respect to KKBT-FM, none of the Stations is a party to or bound by
any collective bargaining agreements or relationships. To the best of Seller's
knowledge, there are neither pending grievances with respect to the KKBT union
agreement disclosed on Schedule 1.1(c) except for the wage grievance from Monica
Dyson, nor are there union organizing efforts underway at the Stations.

ARTICLE 8:  ACCOUNTS RECEIVABLE
            -------------------

     8.1.   Accounts Receivable. All accounts receivable arising prior to the
            -------------------
Closing Date in connection with the operation of the Stations, including but not
limited to accounts receivable for advertising revenues for programs and
announcements performed prior to the Closing Date and other broadcast revenues
for services performed prior to the Closing Date, shall remain the property of
Seller (the "Accounts Receivable") and Buyer shall not acquire any right or
interest therein. For a period of six months from Closing (the "Collection
Period"), Buyer shall collect the Accounts Receivable in the normal and ordinary
course of Buyer's business and shall apply all such amounts collected to the
debtor's oldest account receivable first, except that any such accounts
collected by Buyer from persons who are also indebted to Seller may be applied
to Buyer's account if so directed by the debtor if such debtor indicates there
is a bona fide dispute between Seller and such account debtor with respect to
such account and in which case the Buyer shall notify the Seller of such dispute
and after such notification Seller shall have the right to pursue collection of
such account and to avail itself of all legal remedies available to it. Buyer's
obligation shall not extend to the institution of litigation, employment of
counsel or a collection agency or any other extraordinary means of collection.
During the Collection Period, neither Seller nor its agents shall make any
direct solicitation of any such account debtor for collection purposes or
institute litigation for the collection of amounts due. Any amounts relating to
the

                                       11
<PAGE>

Accounts Receivable that are paid directly to Seller shall be retained by
Seller, with notice to Buyer. Within twenty calendar days after the end of each
month, Buyer shall make a payment to Seller equal to the amount of all
collections of Accounts Receivable during the preceding month less any
commissions owing and paid to salespersons or agencies for ads to which such
Accounts Receivable related. At the end of the Collection Period, any remaining
Accounts Receivable shall be returned to Seller for collection.

ARTICLE 9:  COVENANTS OF SELLER
            -------------------

     9.1.   Seller's Covenants. Seller covenants and agrees with respect
            ------------------
to the Stations that, between the date hereof and Closing, except as permitted
by this Agreement or with the prior written consent of Buyer, which shall not be
unreasonably withheld, Seller shall:

            (a)  operate the Stations in the ordinary course of business
consistent with past practice and in compliance with Section 1.1(c) with respect
to the Station Contracts, and in all material respects in accordance with FCC
rules and regulations, in compliance with the Communications Act, and with all
other applicable laws, regulations, rules and orders;

            (b)  not, other than in the ordinary course of business in
accordance with past practice, sell, lease or dispose of or agree to sell, lease
or dispose of any of the Station Assets, or create, assume or permit to exist
any Liens upon the Station Assets, except for Permitted Liens, or apply for
material modification of any FCC Licenses;

            (c)  furnish Buyer with such information relating to the Station
Assets as Buyer may reasonably request, and permit Buyer's on-site access to the
Station Assets with Seller's prior approval after the FCC Application is filed,
including access to conduct any environmental assessment or survey of the real
property, at Buyer's expense and provided such request and on-site visits do not
interfere unreasonably with the business of the Stations;

            (d)  give or cause the Stations to give Buyer and Buyer's
accountants, at Buyer's expense, and reasonable request and upon reasonable
notice, full and reasonable access during normal business hours to Seller's
financial records that Buyer may reasonably request. The rights of Buyer under
this Section shall not be exercised in such a manner as to interfere
unreasonably with the business of the Stations. Any investigation by Buyer in
accordance with the foregoing shall not diminish or negate, in any way, any of
the representations or warranties of Seller set forth in this Agreement or in
connection herewith;

            (e)  cooperate, and use its reasonable best efforts to cause its
independent auditors to reasonably cooperate, with Buyer in order to enable
Buyer to have independent auditors selected by Buyer, and at Buyer's expense,
prepare audited financial statements for the Stations for the three (3) most
recently completed fiscal year-ends and any quarter and related year to date
period during the current fiscal year. Without limiting the generality of the
foregoing, Seller agrees that it will: (i) consent to the use of and execute
documents in support of such audited financial statements in any registration
statement or other document filed by Buyer

                                       12
<PAGE>

under Securities Act of 1933 and the Securities and Exchange Act of 1934 or any
document relating to a private placement of Buyer's securities;

            (f)  upon the written request of Buyer, promptly send notices of
non-renewal or early termination in respect of any Station Contract in which
such notice would not constitute a breach of such Station Contract; and

            (g)  exercise any rights it has to renew the terms of the KBFB
tower/transmitter lease, the KCMG tower/transmitter lease and the KCMG
translator lease as identified on Schedule 1.1(f).

ARTICLE 10: JOINT COVENANTS
            ---------------

     Buyer and Seller hereby covenant and agree that between the date hereof and
Closing:

     10.1.  Cooperation. Subject to express limitations contained elsewhere
            -----------
herein, each party (i) shall cooperate fully with one another in taking any
reasonable actions (including without limitation, reasonable actions to obtain
the required consent of any governmental instrumentality or any third party)
necessary or helpful to accomplish the transactions contemplated by this
Agreement, including but not limited to the prompt satisfaction of any condition
to Closing set forth herein, and (ii) shall not take any action that conflicts
with its obligations hereunder or that causes its representations and warranties
to become untrue in any material respect.

     10.2.  Control of Stations. Buyer shall not, directly or indirectly,
            -------------------
control, supervise or direct the operations of the Stations prior to Closing.
Such operations, including complete control and supervision of all Station
programs, employees and policies, shall be the sole responsibility of Seller.

     10.3.  Consents to Assignment. The parties shall use commercially
            ----------------------
reasonable efforts to obtain any third party consents necessary for the
assignment of any Station Contract (which shall not require any payment to any
such third party). To the extent that any Station Contract may not be assigned
without the consent of any third party, and such consent is not obtained prior
to Closing, this Agreement and any assignment executed pursuant hereto shall not
constitute an assignment thereof, but to the extent permitted by law shall
constitute an equitable assignment by Seller and assumption by Buyer of Seller's
rights and obligations under the applicable Station Contract, with Seller making
available to Buyer the benefits thereof and Buyer performing the obligations
thereunder on Seller's behalf; provided, however, that Seller shall indemnify
Buyer from and against all loss, costs, expenses and damages incurred by Buyer
during the first twelve (12) months following the Closing Date as a result of
Seller's failure to have obtained a consent to assignment with respect to any of
the leases for the main transmitter sites listed on Schedule 1.1(f) from which
                                                    ---------------
the Stations' signals are broadcast. Seller shall be released from all
indemnification obligations with respect to Seller's failure to have obtained a
consent to assignment with respect to any of the leases for the main transmitter
sites from which the

                                       13
<PAGE>

Stations' signals are broadcast twelve (12) months after the Closing Date,
except to the extent that written notice of such indemnification claim is given
by Buyer to Seller within the twelve month time period.

     10.4.  Employee Matters.
            ----------------

            (a)  Prior to Closing, Seller shall deliver to Buyer a list of: (i)
all of the employees who work exclusively for the Stations including all
employees as of the date of this Agreement, and (ii) pro rata distribution of
certain "shared" employees selected by Seller. Buyer may interview and elect to
hire such listed employees. Buyer is obligated to hire only those employees that
are under employment contracts (and assume Seller's obligations and liabilities
under such employment contracts) which are included in the Station Contracts.
With respect to employees hired by Buyer ("Transferred Employees"), to the
extent permitted by law, Seller shall provide Buyer access to its personnel
records and such other information as Buyer may reasonably request prior to
Closing and transfer such records to Buyer at Closing. With respect to such
hired employees, Seller shall be responsible for the payment of all compensation
and accrued employee benefits payable by it until Closing and thereafter Buyer
shall be responsible for all such obligations payable by it. Buyer shall cause
all employees it hires to be eligible to participate in its "employee welfare
benefit plans" and "employee pension benefit plans" (as defined in Section 3(1)
and 3(2) of ERISA, respectively) in which similarly situated employees are
generally eligible to participate; provided, however, that all such employees
and their spouses and dependents shall be eligible for coverage immediately
after Closing (and shall not be excluded from coverage on account of any pre-
existing condition) to the extent permitted under such plans. For purposes of
any length of service requirements, waiting periods or vesting periods based on
length of service in any such plan for which such employees may be eligible
after Closing, Buyer shall ensure that service with Seller shall be deemed to
have been service with the Buyer. In addition, Buyer shall ensure that each such
employee receives credit under any insured or self-insured plan of Buyer for any
deductibles or co-payments paid by such employees and dependents for the current
plan year under a plan maintained by Seller to the extent permitted by such
plans. Notwithstanding any other provision contained herein, Buyer shall grant
credit to each such employee for all unused sick leave accrued as of Closing as
an employee of Seller. Buyer shall receive a credit at Closing for the payment
of all unused vacation leave accrued by such employees as of Closing.

            (b)  At such time as the Seller can represent to the Buyer as to the
tax-qualified status of the 401(k) savings plan(s) (as to form and operation) in
which Transferred Employees retain account balances with the Seller or its
subsidiaries (the "Saving Plan(s)") and furnish to Buyer a favorable Internal
Revenue Service determination letter as to the tax-qualified status of such
Savings Plan(s) under Section 401(a) of the Code (or an opinion of counsel that
the form of the Savings Plan(s) is so qualified), Buyer and Seller to negotiate
in good faith to enter into a 401(k) plan asset transfer agreement pursuant to
which Buyer's existing 401(k) plan shall accept a transfer of assets from
Seller's Savings Plan(s)attributable to the accounts of Transferred Employees
provided that if the Savings Plan(s) have protected benefits under (S)411(d)(6)
of the

                                       14
<PAGE>

Code which are inconsistent with Buyer's existing 401(k) saving plan(s), then,
in its sole discretion, Buyer need not agree to such transfer.

            (c)  Following execution of the agreement contemplated in clause (b)
above, Seller shall cause to be transferred from the Savings Plan(s) to the plan
covering the Savings Plan Employees (the "Transferee Savings Plan") the
liability for the account balances of the Savings Plan Employees (including
outstanding loan balances of Savings Plan Employees), together with cash or
other mutually acceptable property, the value of which on such transfer date is
equal to such liability, and Buyer shall cause the Transferee Savings Plan to
accept such transfer, all in accordance with the rules and regulations under
Section 414(l) of the Code.

            (d)  Pending completion of the transfers described in this Section,
Seller and Buyer shall make arrangements for distributions, if any, to the
Savings Plan Employees from the Savings Plan(s). Seller and Buyer shall provide
each other with access to information reasonably necessary in order to carry out
the provisions of this paragraph. In addition, until the asset transfer is
effectuated, Buyer shall cooperate with the reasonable requests of Seller to
continue to withhold established loan payments from the pay checks of
Transferred Employees' who have outstanding loan balances in the Savings Plan(s)
and Buyer shall remit such withheld amounts to the Seller in a timely fashion
such that the outstanding loans do not go into default.

     10.5.  1031 Exchange. At or prior to Closing, Seller may assign its rights
            -------------
under this Agreement (in whole or in part) to a qualified intermediary (as
defined in Treasury regulation section 1.1031(k)-1(g)(4)) or similar entity or
arrangement ("Qualified Intermediary"). Upon any such assignment, Seller shall
promptly give written notice thereof to Buyer, and Buyer shall cooperate with
the reasonable requests of Seller and any Qualified Intermediary in connection
therewith. Without limiting the generality of the foregoing, if Seller gives
notice of such assignment, Buyer shall (i) promptly provide Seller with written
acknowledgment of such notice and (ii) at Closing, pay the Purchase Price (or
any portion thereof designated by the Qualified Intermediary) to or on behalf of
the Qualified Intermediary (which payment shall, to the extent thereof, satisfy
the obligations of Buyer to make such payment hereunder). Seller's assignment to
a Qualified Intermediary will not relieve Seller of any of its duties or
obligations herein. Except for the obligations of Buyer set forth in this
Section, Buyer shall not have any liability or obligation to Seller for the
failure of the contemplated exchange to qualify as a like-kind exchange under
Section 1031 of the Internal Revenue Code unless such failure is the result of
the material breach or default by Buyer under this Agreement.

     10.6.  Trust. Notwithstanding anything in this Agreement to the contrary,
            -----
Seller may at it option assign this Agreement (in whole or part) and assign and
transfer the Station Assets (in whole or in part) to a trustee to hold and
operate pursuant to a trust agreement, provided such trustee assumes Seller's
duties and obligations hereunder with respect to the Station Assets held in such
trust. Seller shall provide Buyer with written notice of the assignment to such
trust, and further provided that Seller shall perform the obligations described
in Section 15 below.

                                       15
<PAGE>

     10.7.  KKBT Frequency Change. For one (1) year following the Closing, Buyer
            ---------------------
shall submit to Seller for reimbursement invoices totaling in the aggregate no
more than Five Million Dollars ($5,000,000), such invoices must relate to
promotional expenses related to the KKBT(FM), Los Angeles frequency change and
at least twenty (20%) of the aggregate of invoices reimbursed to Buyer by Seller
must be spent on promotional services provided by Eller Media at its standard
competitive rates. At the end of the one year period, if Buyer has not submitted
to Seller invoices, which in the aggregate equal or exceed Five Million Dollars,
Seller shall pay to Buyer the difference between total invoices reimbursed by
Seller and Five Million Dollars ($5,000,000). Buyer acknowledges that it will be
operating Station KKBT on the frequency of 100.3 MHZ as of the Closing Date.
Seller agrees that the operations of Station KKBT will only be moved to the new
frequency in accordance with a transition plan developed by Buyer and Seller.

     10.8.  Eller Media Expenditure. At Closing, Buyer shall deposit three
            -----------------------
million dollars ($3,000,000) (the "Eller Deposit") into an escrow account
established between Buyer, Seller and a mutually agreeable escrow agent. Buyer
shall spend the Eller Deposit during the period fifteen (15) months from the
Closing Date on promotional services provided by Eller Media nationwide at its
standard competitive rates. At the end of the fifteen (15) month period, the
balance of the Eller Deposit, if any, shall be returned to Seller.

ARTICLE 11: CONDITIONS OF CLOSING BY BUYER
            ------------------------------

     The obligations of Buyer hereunder are, at its option, subject to
satisfaction, at or prior to Closing, of each of the following conditions:

     11.1.  Representations, Warranties and Covenants. The representations and
            -----------------------------------------
warranties of Seller made in this Agreement and any exhibit or schedule
delivered pursuant thereto shall be true and correct in all material respects as
of the Closing Date except for changes permitted or contemplated by the terms of
this Agreement, and the covenants and agreements to be complied with and
performed by Seller at or prior to Closing shall have been complied with or
performed in all material respects. Buyer shall have received a certificate
dated as of the Closing Date from Seller, executed by an authorized officer of
Seller to the effect that the conditions set forth in this Section have been
satisfied.

     11.2.  Governmental Consents. The FCC Consent and DOJ Consent, and, if
            ---------------------
applicable, HSR Clearance, shall have been obtained, and no court or
governmental order prohibiting Closing shall be in effect.

ARTICLE 12: CONDITIONS OF CLOSING BY SELLER
            -------------------------------

     The obligations of Seller hereunder are, at its option, subject to
satisfaction, at or prior to Closing, of each of the following conditions:

     12.1.  Representations, Warranties and Covenants. The representations and
            -----------------------------------------
warranties

                                       16
<PAGE>

of Buyer made in this Agreement shall be true and correct in all material
respects as of the Closing Date except for changes permitted or contemplated by
the terms of this Agreement, and the covenants and agreements to be complied
with and performed by Buyer at or prior to Closing shall have been complied with
or performed in all material respects. Seller shall have received a certificate
dated as of the Closing Date from Buyer, executed by an authorized officer of
Buyer, to the effect that the conditions set forth in this Section have been
satisfied.

     12.2.  Governmental Consents. The FCC Consent and DOJ Consent, and, if
            ---------------------
applicable, HSR Clearance, shall have been obtained, and no court or
governmental order prohibiting Closing shall be in effect.

     12.3.  AMFM Closing. The closing under the AMFM Agreement shall have been
            ------------
consummated.

ARTICLE 13: EXPENSES
            --------

     13.1.  Expenses. Each party shall be solely responsible for all costs and
            --------
expenses incurred by it in connection with the negotiation, preparation and
performance of and compliance with the terms of this Agreement, except that (i)
all recordation, transfer and documentary taxes, fees and charges, and any
excise, sales or use taxes, applicable to the transfer of the Station Assets
shall be paid equally by Buyer and Seller, (ii) all FCC filing fees shall be
paid equally by Buyer and Seller, and (iii) all HSR Act filing fees and expenses
shall be paid by Buyer.

ARTICLE 14: DOCUMENTS TO BE DELIVERED AT CLOSING
            ------------------------------------

     14.1.  Seller's Documents. At Closing, Seller shall deliver or cause to be
            ------------------
delivered to Buyer:

            (i)   certified copies of resolutions authorizing its execution,
delivery and performance of this Agreement, including the consummation of the
transactions contemplated hereby;

            (ii)  the certificate described in Section 11.1;

            (iii) such bills of sale, assignments, special warranty deeds,
documents of title and other instruments of conveyance, assignment and transfer
as may be necessary to convey, transfer and assign the Station Assets to Buyer,
free and clear of Liens, except for Permitted Liens;

            (iv)  a written opinion of Clear Channel Broadcasting, Inc.'s and
Clear Channel Broadcasting Licenses, Inc.'s counsel in the form of Exhibit B,
                                                                   ---------
dated as of the Closing Date;

            (v)   a written opinion of AMFM Operating, Inc., AMFM Ohio, Inc.,
AMFM Houston, Zebra Broadcasting Corporation, AMFM Radio Licenses, LLC,
Cleveland Radio

                                       17
<PAGE>

Licenses, LLC and Capstar TX Limited Partnership counsel in the form of Exhibit
                                                                        -------
D, dated as of the Closing Date; and
-

            (vi)  the leases described in Section 1.3.

     14.2.  Buyer's Documents. At Closing, Buyer shall deliver or cause to be
            -----------------
delivered to Seller:

            (i)   the certified copies of resolutions authorizing its execution,
delivery and performance of this Agreement, including the consummation of the
transactions contemplated hereby;

            (ii)  the certificate described in Section 12.1; and

            (iii) such documents and instruments of assumption as may be
necessary to assume the Assumed Obligations, and the Purchase Price in
accordance with Section 3.1 hereof.

ARTICLE 15: SURVIVAL; INDEMNIFICATION.
            -------------------------

     15.1.  Survival. The covenants, agreements, representations and warranties
            --------
in this Agreement shall survive Closing for a period of twelve (12) months from
the Closing Date whereupon they shall expire and be of no further force or
effect, except those under (i) this Article 15 that relate to Damages (defined
below) for which written notice is given by the indemnified party to the
indemnifying party prior to the expiration, which shall survive until resolved,
(ii) Sections 7.2 and 7.9 shall survive the Closing through the applicable
statute of limitations period, and (iii) Sections 2.1 (Assumed Obligations), 2.2
(Retained Obligations), 3.3 (Adjustments), 3.4 (Allocation), 8.1 (Accounts
Receivable) and 13.1 (Expenses), and indemnification obligations with respect to
such provisions, which shall survive until performed.

     15.2.  Indemnification.
            ---------------

            (a)   From and after the Closing, Seller shall defend, indemnify and
hold harmless Buyer from and against any and all losses, costs, damages,
liabilities and expenses, including reasonable attorneys' fees and expenses
("Damages") incurred by Buyer arising out of or resulting from: (i) any breach
or default by Seller under this Agreement; (ii) the Retained Obligations; or
(iii) the business or operation of the Stations before Closing; provided,
however, that (i) Seller shall have no liability to Buyer hereunder until, and
only to the extent that, Buyer's aggregate Damages exceed $500,000 and (ii) the
maximum liability of Seller hereunder shall be $25,000,000, except that such
limitations in (i) and (ii) shall not apply to Seller's obligations under
Section 10.3 with respect to consent to assignment for the transmitter site
leases or Section 7.5 with respect to tax payments and liens.

            (b)  From and after the Closing, Buyer shall defend, indemnify and
hold

                                       18
<PAGE>

harmless Seller from and against any and all Damages incurred by Seller arising
out of or resulting from: (i) any breach or default by Buyer under this
Agreement; (ii) the Assumed Obligations; or (iii) the business or operation of
the Stations after Closing provided, however, that Buyer shall have no liability
to Seller hereunder until, and only to the extent that, Seller's aggregate
Damages exceed $500,000 and (ii) the maximum liability of Buyer hereunder shall
be $25,000,000.

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

            (a)  The indemnifying party shall have the right to undertake, by
counsel or other representatives of its own choosing, the defense or opposition
to such Claim, except with respect to any Claim brought by Buyer pursuant to
Section 10.3 above which Buyer shall have the right to undertake, by counsel or
other representatives of its own choosing, the defense or opposition to such
Claim at its own expense.

            (b)  In the event that the indemnifying party shall elect not to
undertake such defense or opposition, or, within twenty (20) days after written
notice (which shall include sufficient description of background information
explaining the basis for such Claim) of any such Claim from the indemnified
party, the indemnifying party shall fail to undertake to defend or oppose, the
indemnified party (upon further written notice to the indemnifying party) shall
have the right to undertake the defense, opposition, compromise or settlement of
such Claim, by counsel or other representatives of its own choosing, on behalf
of and for the account and risk of the indemnifying party (subject to the right
of the indemnifying party to assume defense of or opposition to such Claim at
any time prior to settlement, compromise or final determination thereof).

            (c)  Anything herein to the contrary notwithstanding and except as
set forth in the exception of 15.3(a) above: (i) the indemnified party shall
have the right, at its own cost and expense, to participate in the defense,
opposition, compromise or settlement of the Claim; (ii) the indemnifying party
shall not, without the indemnified party's written consent, settle or compromise
any Claim or consent to entry of any judgment which does not include as an
unconditional term thereof the giving by the claimant or the plaintiff to the
indemnified party of a release from all liability in respect of such Claim; and
(iii) in the event that the indemnifying party undertakes defense of or
opposition to any Claim, the indemnified party, by counsel or other
representative of its own choosing and at its sole cost and expense, shall have
the right to

                                       19
<PAGE>

consult with the indemnifying party and its counsel or other representatives
concerning such Claim and the indemnifying party and the indemnified party and
their respective counsel or other representatives shall cooperate in good faith
with respect to such Claim.

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

ARTICLE 16: TERMINATION
            -----------

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

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

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

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

            (d)  by written notice of Buyer to Seller, or by Seller to Buyer, if
the FCC

                                       20
<PAGE>

denies the FCC Application;

            (e)  by written notice of Seller to Buyer if the Closing shall not
have been consummated on or before the date four months after the date of this
Agreement; (j)

            (f)  by written notice of Seller to Buyer if the AMFM Agreement is
terminated or expires; or

            (g)  by written notice of Buyer to Seller or Seller to Buyer if the
Closing is not consummated on or before the date thirteen months after the date
of this Agreement.

     The term "Cure Period" as used herein means a period commencing the date
Buyer or Seller receives from the other written notice of breach or default
hereunder and continuing until the earlier of (i) thirty (30) days thereafter or
(ii) the Closing Date; provided, however, that if the breach or default cannot
reasonably be cured within such period but can be cured before the Closing Date,
and if diligent efforts to cure promptly commence, then the Cure Period shall
continue as long as such diligent efforts to cure continue, but not beyond the
Closing Date. Except as set forth below, the termination of this Agreement shall
not relieve any party of any liability for breach or default under this
Agreement prior to the date of termination. Notwithstanding anything contained
herein to the contrary, Section 13.1 shall survive any termination of this
Agreement.

     16.2.  Remedies. The parties recognize that if either party refuses to
            --------
consummate the Closing pursuant to the provisions of this Agreement or either
party otherwise breaches or defaults such that the Closing has not occurred
("Breaching Party"), monetary damages alone will not be adequate to compensate
the non-breaching party ("Non-Breaching Party") for its injury. Such Non-
Breaching Party shall therefore be entitled to obtain specific performance of
the terms of this Agreement in lieu of, and not in addition to, any other
remedies, including but not limited to monetary damages, that may be available
to it; provided however, that Seller may elect to recover liquidated damages as
its sole remedy in lieu of obtaining specific performance. If any action is
brought by the Non-Breaching Party to enforce this Agreement, the Breaching
Party shall waive the defense that there is an adequate remedy at law. In the
event of a default by the Breaching Party which results in the filing of a
lawsuit for damages, specific performance, or other remedy, the Non-Breaching
Party shall be entitled to reimbursement by the Breaching Party of reasonable
legal fees and expenses incurred by the Non-Breaching Party, provided that the
Non-Breaching Party is successful in such lawsuit.

     16.3.  Liquidated Damages. If Seller terminates this Agreement due to
            ------------------
Buyer's failure to consummate the Closing on the Closing Date or if this
Agreement is otherwise terminated by Seller pursuant to Section 16.1(c), then
Buyer shall pay Seller as liquidated damages an amount equal to THREE HUNDRED
TWENTY FIVE MILLION SIX HUNDRED TWENTY FIVE THOUSAND DOLLARS ($325,625,000). If
elected by and paid to Seller, such liquidated damage payment shall be Seller's
sole remedy hereunder. It is understood and agreed that such

                                       21
<PAGE>

liquidated damages amount represents Buyer's and Seller's reasonable estimate of
actual damages and does not constitute a penalty.

ARTICLE 17: MISCELLANEOUS PROVISIONS
            ------------------------

     17.1.  Casualty Loss. In the event any loss or damage of the Station
            -------------
Assets exists on the Closing Date, Buyer and Seller shall consummate the Closing
and Seller shall assign to Buyer the proceeds of any insurance, including
business interruption, payable to Seller on account of such damage or loss. If
insurance proceeds payable with respect to the lost or damaged asset and/or lost
revenue are insufficient to repair or replace such asset, or are insufficient to
satisfy lost revenue, Buyer shall receive a credit at Closing against the
Purchase Price equal to the cost of repair or replacement and lost revenue less
the amount of insurance proceeds assigned to Buyer.

     17.2.  Further Assurances.
            ------------------

            (a)  After the Closing, Seller shall from time to time, at the
request of and without further cost or expense to Buyer, execute and deliver
such other instruments of conveyance and transfer and take such other actions as
may reasonably be requested in order to more effectively consummate the
transactions contemplated hereby to vest in Buyer good title to the Station
Assets, and Seller shall cooperate with Buyer and cause its independent
accountant to cooperate, at Buyer's expense, to assist Buyer with its reporting
requirements to governmental agencies, and Buyer shall from time to time, at the
request of and without further cost or expense to Seller, execute and deliver
such other instruments and take such other actions as may reasonably be
requested in order to more effectively to relieve Seller of any obligations
being assumed by Buyer hereunder.

            (b)  Following the Closing, Buyer and Seller shall cooperate with
each other in the event and for so long as any party is actively contesting or
defending against any action, suit, proceeding, hearing, investigation, charge,
complaint, claim or demand in connection with this Agreement or any transaction
contemplated under the Agreement all at the sole cost of the contesting or
defending party (unless the contesting party or defending party is entitled to
indemnification therefor under Article 15 above).

     17.3.  Assignment. Except as set forth in Sections 10.5 (1031 Exchange) and
            ----------
10.6 (Trust), neither party may assign this Agreement without the prior written
consent of the other party hereto; provided, however, that either party may
assign this Agreement to one or more direct or indirect subsidiaries so long as
(i) the assigning party remains liable hereunder, (ii) the assignment is made
prior to any filings with the FTC or DOJ, including any HSR filing, and (ii)
such assignment will not delay any consent required to be obtained hereunder,
including but not limited to HSR Clearance, DOJ Consent and FCC Consent, or
delay the Closing in any respect; and provided, further, after Closing Buyer may
collaterally assign its rights hereunder to secure its obligations to
institutional or bank lenders (a "Collateral Assignment") without consent of

                                       22
<PAGE>

Seller. With respect to any permitted assignment, the parties shall take all
such actions as are reasonably necessary to effectuate such assignment,
including but not limited to cooperating in any appropriate filings with the FCC
or other governmental authorities. All covenants, agreements, statements,
representations, warranties and indemnities in this Agreement by and on behalf
of any of the parties hereto shall bind (except under a Collateral Assignment)
and inure to the benefit of their respective successors and permitted assigns of
the parties hereto.

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

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

     17.6.  Governing Law. The construction and performance of this Agreement
            -------------
shall be governed by the laws of the State of Texas without giving effect to the
choice of law provisions thereof.

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

if to Seller:                      c/o Clear Channel Broadcasting, Inc.
                                   200 Concord Plaza, Suite 600
                                   San Antonio, Texas 78216
                                   Attention: President
                                   Facsimile: (210) 822-2299

with a copy (which shall not
constitute notice) to:             Graydon, Head & Ritchey
                                   1900 Fifth Third Center
                                   511 Walnut Street
                                   Cincinnati, Ohio 45202
                                   Attention: John J. Kropp, Esq.
                                   Facsimile: (513) 651-3836

if to Buyer:                       Radio One, Inc.
                                   5900 Princess Garden Parkway - 8/th/ Floor

                                       23
<PAGE>

                                   Lanham, MD 20706
                                   Attention: Alfred C. Liggins
                                   Facsimile: (301) 306-9694

with a copy (which shall not
constitute notice) to:             Radio One, Inc.
                                   5900 Princess Garden Parkway - 8/th/ Floor
                                   Lanham, MD 20706
                                   Attention: Linda J. Eckard, Esq.
                                   Facsimile: (301) 306-9638

                                   Kirkland & Ellis
                                   655 Fifteenth Street, N.W.
                                   Washington, DC 20005
                                   Attention: Terrance L. Bessey, Esq.
                                   Facsimile: (202) 879-5200

     17.8.  Counterparts. This Agreement may be executed in one or more
            ------------
counterparts, each of which will be deemed an original and all of which together
will constitute one and the same instrument.

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

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

     17.11. Entire Agreement. This Agreement embodies the entire agreement and
            ----------------
understanding of the parties hereto and supersedes any and all prior agreements,
arrangements and understandings relating to the matters provided for herein.
This Agreement does not supersede any confidentiality agreement relating to the
Stations, and any such confidentiality agreement is to expire at Closing.

     17.12. No Liability. The parties agree that no past, present or future
            ------------
stockholder, director or officer of Seller or Buyer or of their respective
affiliates shall have any personal or individual liability for the obligations
of Seller or Buyer, as applicable, under this Agreement or any other agreement
entered into in connection with this Agreement.

                           [SIGNATURE PAGE FOLLOWS]

                                       24
<PAGE>

                  SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT
                  ------------------------------------------

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

SELLER:                            CLEAR CHANNEL BROADCASTING, INC.

                                   By:  /s/ Jerome L. Kerstine
                                        ------------------------------------
                                        Name:  Jerome L. Kerstine
                                               -----------------------------
                                        Title: SVP
                                               -----------------------------

                                   CLEAR CHANNEL BROADCASTING LICENSES, INC.

                                   By:  /s/ Jerome L. Kerstine
                                        ------------------------------------
                                        Name:  Jerome L. Kerstine
                                               -----------------------------
                                        Title: SVP
                                               -----------------------------

                                   AMFM OPERATING, INC.

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________

                                   AMFM OHIO, INC.

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________

                                   AMFM HOUSTON, INC.

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________

                                   AMFM RADIO LICENSES, LLC

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________

                                   ZEBRA BROADCASTING CORPORATION

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________
<PAGE>

                  SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT
                  ------------------------------------------

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

SELLER:                            CLEAR CHANNEL BROADCASTING, INC.

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________

                                   CLEAR CHANNEL BROADCASTING LICENSES, INC.

                                   By:  ____________________________________
                                        Name:  _____________________________
                                        Title: _____________________________

                                   AMFM OPERATING, INC.

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:  William S. Banowsky, Jr.
                                               -----------------------------
                                        Title: Executive Vice President
                                               -----------------------------

                                   AMFM OHIO, INC.

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:  William S. Banowsky, Jr.
                                               -----------------------------
                                        Title: Executive Vice President
                                               -----------------------------

                                   AMFM HOUSTON, INC.

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:  William S. Banowsky, Jr.
                                               -----------------------------
                                        Title: Executive Vice President
                                               -----------------------------

                                   AMFM RADIO LICENSES, LLC

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:  William S. Banowsky, Jr.
                                               -----------------------------
                                        Title: Executive Vice President
                                               -----------------------------

                                   ZEBRA BROADCASTING CORPORATION

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:  William S. Banowsky, Jr.
                                               -----------------------------
                                        Title: Executive Vice President
                                               -----------------------------

                                   CLEVELAND RADIO LICENSE, LLC

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:
                                        Title: _____________________________

                                   CAPSTAR TX LIMITED PARTNERSHIP

                                   By:  /s/ William S. Banowsky, Jr.
                                        ------------------------------------
                                        Name:  William S. Banowsky, Jr.
                                               -----------------------------
                                        Title: Executive Vice President
                                               -----------------------------
<PAGE>

BUYER:              RADIO ONE, INC.

                    By:  /s/ Alfred C. Liggins
                         -----------------------------
                         Name:  Alfred C. Liggins
                                ----------------------
                         Title: President
                                ----------------------

                                      27
<PAGE>

Schedules
---------

1.1(a)         -         FCC Licenses

1.1(b)         -         Tangible Personal Property

1.1(c)         -         Station Contracts

1.1(d)         -         Intangible Property

1.1(f)         -         Real Property

1.2(h)         -         Excluded Assets

Exhibit        A         Tower Lease

Exhibit        A-1       WZAK Tower Lease

Exhibit        A-2       Studio Lease

Exhibit        B         Clear Channel Opinion Letter

Exhibit        C         Escrow Agreement

Exhibit        D         AMFM Opinion Letter

                                      28<PAGE>

                                                                   Exhibit 10.59

                          AGREEMENT AND PLAN OF MERGER
                          ----------------------------

                                  By and Among

                            Davis Broadcasting, Inc.

                                Gregory A. Davis

                                      and

                                Radio One, Inc.

                                 March 11, 2000
<PAGE>

                               Table of Contents
                               -----------------

<TABLE>
<CAPTION>
<S>                                                                                   <C>
Recitals............................................................................   1
Agreement...........................................................................   2
     ARTICLE 1: THE MERGERS.........................................................   2
         1.1  The Mergers...........................................................   2
         1.2  Effective Time........................................................   2
         1.3  Effect of the Mergers.................................................   2
         1.4  Certificates of Incorporation and of Formation and Company Agreement..   2
         1.5  Managers, Members, Directors and Officers.............................   3
         1.6  Stock.................................................................   3
         1.7  Merger Consideration..................................................   3
         1.8  Post-Closing Escrow...................................................   4
         1.9  Deposit...............................................................   4
         1.10 Adjustment............................................................   5
         1.11 Closing...............................................................   5
         1.12 FCC Applications......................................................   6
         1.13 Hart-Scott-Rodino.....................................................   6
         1.14 Employment Agreement..................................................   6
         1.15 Preclosing Reorganizations............................................   6
</TABLE>
<PAGE>

<TABLE>
<S>                                                                                   <C>
     ARTICLE 2: COMPANY REPRESENTATIONS AND WARRANTIES..............................   6
          2.1 Organization..........................................................   6
          2.2 Capitalization........................................................   7
          2.3 Subsidiaries and Investments..........................................   7
          2.4 Books and Records.....................................................   7
          2.5 Authority.............................................................   7
          2.6 No Conflicts..........................................................   7
          2.7 Financial Statements..................................................   8
          2.8 Tax Matters...........................................................   9
          2.9 Assets................................................................  10
          2.10 FCC Authorizations...................................................  10
          2.11 Personal Property....................................................  11
          2.12 Real Property........................................................  11
          2.13 Contracts............................................................  12
          2.14 Intangible Property..................................................  12
          2.15 Employees............................................................  12
          2.16 Employee Benefit Matters.............................................  13
          2.17 Compliance with Law; Litigation......................................  13
          2.18 Insurance............................................................  13
          2.19 Environmental........................................................  13
          2.20 Affiliates...........................................................  14
          2.21 Guaranties, Indemnities, Etc.........................................  14
          2.22 No Finder............................................................  14

</TABLE>
                                     -ii-
<PAGE>

<TABLE>
<S>                                                                                   <C>
          2.23 Powers of Attorney..................................................   14
          2.24 Year 2000 Compliance................................................   14
          2.25 Disclosure..........................................................   14
     ARTICLE 3: MAJORITY SHAREHOLDER REPRESENTATIONS AND WARRANTIES................   14
          3.1 Authority............................................................   14
          3.2 Binding Effect.......................................................   15
          3.3 No Conflicts.........................................................   15
     ARTICLE 4: RADIO ONE REPRESENTATIONS AND WARRANTIES...........................   15
          4.1 Organization.........................................................   15
          4.2 Authority............................................................   15
          4.3 No Conflicts.........................................................   15
          4.4 No Finder............................................................   16
          4.5 Qualification........................................................   16
          4.6 Reorganizations......................................................   16
     ARTICLE 5: COVENANTS OF COMPANY AND THE SHAREHOLDERS..........................   16
          5.1 Operation of the Business............................................   16
          5.2 Reports..............................................................   17
          5.3 Access...............................................................   17
          5.4 Confidentiality......................................................   18
          5.5 Consents.............................................................   18
          5.6 Estoppel Certificates; Title Insurance; Liens........................   18
          5.7 Environmental........................................................   18

</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<S>                                                                                   <C>
          5.8 Employment Matters...................................................   19
          5.9 Exclusive Dealing....................................................   19
          5.10 Shareholders' Approval..............................................   19
          5.11 Inter-Davis Companies Debt..........................................   19
          5.12 Cancellation of Subordinated Lenders' Conversion, Purchase Option
               and Put Rights Agreement............................................   19
          5.13 Qualification.......................................................   20
          5.14 FCC Compliance......................................................   20
          5.15 Bank Accounts.......................................................   20
     ARTICLE 6: ADDITIONAL COVENANTS...............................................   20
          6.1 Representations and Warranties.......................................   20
          6.2 Notice of Proceedings................................................   20
     ARTICLE 7: SHAREHOLDERS CONDITIONS............................................   20
          7.1 Representations, Warranties and Covenants............................   20
          7.2 Proceedings..........................................................   21
          7.3 FCC Consent..........................................................   21
          7.4 Hart-Scott-Rodino....................................................   21
          7.5 Deliveries...........................................................   21
          7.6 Columbus Sub.........................................................   21
</TABLE>

                                     -iv-
<PAGE>

<TABLE>
<S>                                                                              <C>
     ARTICLE 8: RADIO ONE CONDITIONS...........................................  21
          8.1 Representations, Warranties and Covenants........................  21
          8.2 Proceedings......................................................  21
          8.3 FCC Consent......................................................  21
          8.4 Hart-Scott-Rodino................................................  21
          8.5 Deliveries.......................................................  21
          8.6 Required Consents................................................  22
          8.7 Material Adverse Change..........................................  22
          8.8 Title Commitments................................................  22
          8.9 Surveys..........................................................  22
          8.10 Estoppel Certificates...........................................  22
          8.11 Environmental...................................................  22
          8.12 Net Operating Losses............................................  22
          8.13 Subordinated Lenders' Conversion Rights.........................  22
          8.14 Inter-Company Debt..............................................  22
          8.15 Shareholders' Approval..........................................  22
          8.16 Liens...........................................................  22
     ARTICLE 9: ITEMS TO BE DELIVERED AT THE CLOSING...........................  23
          9.1 Deliveries by the Company and the Shareholders...................  23
          9.2 Deliveries by Radio One..........................................  24
          9.3 Satisfaction of Davis Companies Indebtedness for Long Term Debt..  24
</TABLE>

                                      -v-
<PAGE>

<TABLE>
<S>                                                                                   <C>
     ARTICLE 10: SURVIVAL; RELEASE; INDEMNIFICATION............................  24
          10.1 Survival; Release...............................................  24
          10.2 Indemnification.................................................  24
          10.3 Deficiencies....................................................  25
          10.4 Exceptions......................................................  26
          10.5 Procedures......................................................  26
               (a) Third Party Claims..........................................  26
               (b) Direct Claims...............................................  26
          10.6 Payment.........................................................  26
          10.7 Legal Expenses..................................................  27
          10.8 Sole Remedy.....................................................  27
     ARTICLE 11:  MISCELLANEOUS................................................  27
          11.1 Termination.....................................................  27
          11.2 Specific Performance............................................  27
          11.3 Expenses........................................................  28
          11.4 Further Assurances..............................................  28
          11.5 Broadcast Transmission Interruption.............................  28
          11.6 Risk of Loss....................................................  28
          11.7 Cooperation.....................................................  29
          11.8 Tax Matters.....................................................  29
     ARTICLE 12:  GENERAL PROVISIONS...........................................  30
          12.1 Successors and Assigns..........................................  30
          12.2 Amendments; Waivers.............................................  30

</TABLE>

                                     -vi-
<PAGE>

<TABLE>
<S>                                                                              <C>

          12.3 Notices.........................................................  30
          12.4 Captions........................................................  31
          12.5 Governing Law...................................................  31
          12.6 Entire Agreement................................................  31
          12.7 Counterparts....................................................  31

</TABLE>

                                     -vii-
<PAGE>

                          AGREEMENT AND PLAN OF MERGER
                          ----------------------------

          THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is made as of
March 11, 2000 among Davis Broadcasting, Inc., a Delaware corporation (the
"Company"), Gregory A. Davis (the "Majority Shareholder"), and Radio One, Inc.,
a Delaware corporation ("Radio One").

                                    Recitals
                                    --------

          The other shareholders of the Company are listed on Schedule 2.2 of
                                                              ------------
this Agreement (the "Minority Shareholders") (the Majority Shareholder and the
Minority Shareholders, collectively, the "Shareholders").  The Shareholders own
all of the issued and outstanding shares of capital stock of the Company as of
the date hereof (the "Company Stock").  The Company owns all of the issued and
outstanding shares of capital stock of Davis Broadcasting of Charlotte, Inc., a
Delaware corporation ("DBC") and Davis Broadcasting, Inc. of Augusta, a Delaware
corporation ("DBA").  DBA owns all of the issued and outstanding shares of
capital stock of Davis Broadcasting Inc., of Evans, a Delaware corporation
("DBE") (DBC, DBA and DBE, collectively, the "Station Subs").

          The Station Subs own and operate the following radio broadcast
stations (the "Davis Stations") pursuant to certain licenses, permits and
authorizations issued by the Federal Communications Commission (the "FCC"):

          DBC:         WCCJ(FM), Harrisburg, North Carolina

          DBA:         WFXA-FM, Augusta, Georgia
                       WTHB(AM), Augusta, Georgia
                       WAKB(FM), Wrens, Georgia

          DBE:         WAEG(FM), Evans, Georgia
                       WAEJ(FM), Waynsboro, Georgia

          The Company also owns all of the issued and outstanding shares of
capital stock of Davis Broadcasting, Inc. of Columbus, a Delaware corporation
(the "Columbus Sub").  The Columbus Sub owns and operates the following radio
broadcast station and the Company owns and operates the following Columbus radio
broadcast stations (the "Columbus Stations") pursuant to licenses, permits and
authorizations issued by the FCC:

          Company:       WFXE(FM), Columbus, Georgia
                         WOKS(AM), Columbus, Georgia

          Columbus Sub:  WKZJ(FM), Greenville, Georgia

          The parties have determined that it is in their respective best
interests to merge the Company with and into a limited liability company to be
formed ("Radio One of Charlotte, LLC"), which will be a subsidiary of a new
corporation to be formed ("NewCo"), which NewCo just prior to the Merger of the
Company into Radio One of Charlotte, LLC, will be a wholly-owned subsidiary of
the Company.  On the day following the merger of the Company with and into Radio
One of Charlotte, LLC, NewCo will be merged with and into Radio One, all in
accordance with the Delaware Limited Liability Company Act and the Delaware
General Corporation Law (the "Delaware Laws") on the terms and conditions of
this Agreement.  The parties have, or their respective boards of directors have,
approved such mergers (the "Mergers").
<PAGE>

          The parties intend that the Mergers shall constitute a reorganization
under Section 368(a) of the Internal Revenue Code of 1986, as amended (the
"Code"), and the respective boards of directors have adopted this Agreement as a
plan of reorganization under the treasury regulations.

                                   Agreement
                                   ---------

          NOW, THEREFORE, taking the foregoing into account, and in
consideration of the mutual covenants and agreements set forth herein, the
parties, intending to be legally bound, hereby agree as follows:

ARTICLE 1:  THE MERGERS
            -----------

    1.1     The Mergers.  Upon the terms and conditions of this
            -----------
Agreement, and in accordance with the Delaware Laws, on the day before the
Closing Date (defined below) the Company shall be merged with and into Radio One
of Charlotte, LLC, (the "Company/LLC Merger") and upon Closing (defined below)
NewCo shall be merged with and into Radio One (the "NewCo/ROI Merger").  As a
result of the Mergers, the separate existence of the Company and NewCo shall
cease and Radio One of Charlotte, LLC, and Radio One shall continue as the
surviving companies of the Mergers.  Radio One of Charlotte, LLC, and Radio One
as the surviving companies after the Mergers are hereinafter sometimes referred
to as a "Surviving Company" or the "Surviving Companies."  Capitalized terms
used in this Agreement and not otherwise defined shall have the respective
meanings set forth in Annex A attached hereto.
                      -------

    1.2     Effective Time. The parties hereto shall cause the Mergers to be
            --------------
consummated by filing certificates of merger (the "Certificates of Merger") with
the Secretary of State of the State of Delaware, in such form as required by,
and executed in accordance with the relevant provisions of, the Delaware Laws.
The "Effective Time" of the Company/LLC Merger shall be on the day before the
Closing Date, and the "Effective Time" of the NewCo/ROI Merger shall be Closing.
Such effective times shall be specified in the Certificates of Merger.

    1.3     Effect of the Mergers.  As of the respective effective times, the
            ---------------------
Mergers shall have the effects set forth in the Delaware Laws. Without limiting
the generality of the foregoing, and subject thereto, as of the Effective Time
of the Company/LLC Merger all the property, rights, privileges, powers and
franchises of the Company shall vest in Radio One of Charlotte, LLC, the
Surviving Company, and all debts, liabilities and duties of the Company shall
become the debts, liabilities and duties of the Surviving Company. As of the
Effective Time of the NewCo/ROI Merger, all property, rights, privileges, powers
and franchises of NewCo shall vest in Radio One, the Surviving Company, and all
debts, liabilities and duties of NewCo shall become the debts, liabilities and
duties of the Surviving Company.

    1.4     Certificates of Incorporation and of Formation and Company
            ----------------------------------------------------------
Agreement:
---------

          (a) As of the Effective Time of the Company/LLC Merger, the
Certificate of Formation of Radio One of Charlotte, LLC, as in effect
immediately prior to the Effective Time, shall be the Certificate of Formation
of the Surviving Company, until thereafter amended as provided by law and such
Certificate of Formation.  As of the Effective Time of the Company/LLC Merger,
the limited liability company agreement of Radio One of Charlotte, LLC, as in
effect immediately prior to the Effective Time, shall be the limited liability
company agreement of the Surviving Company, until thereafter amended as provided
by law, the Certificate of Formation of Radio One of Charlotte, LLC, and such
limited liability company agreement.

                                     -2-
<PAGE>

            (b) As of the Effective Time of the NewCo/ROI Merger, the
Certificate of Incorporation of Radio One, as in effect immediately prior to the
Effective Time shall be the Certificate of Incorporation of the Surviving
Company, until thereafter amended as provided by law and such Certificate of
Incorporation. As of the Effective Time of the NewCo/ROI Merger, the by-laws of
Radio One, as in effect immediately prior to the Effective Time, shall be the
by-laws of the Surviving Company, until thereafter amended as provided by law,
the Certificate of Incorporation of Radio One and such by-laws.

     1.5.   Managers, Members, Directors and Officers.
            -----------------------------------------

            (a) As of the Effective Time of the Company/LLC Merger, the managers
designated by Radio One shall be the managers of Radio One of Charlotte, LLC,
each to hold office in accordance with the Certificate of Formation and limited
liability company agreement of Radio One of Charlotte, LLC, until the earlier of
their resignation or removal or until their respective successors are duly
elected or appointed and qualified, as the case may be.  As of the Effective
Time of the Company/LLC Merger, the officers designated by Radio One shall be
the officers of Radio One of Charlotte, LLC, each to hold office in accordance
with the Certificate of Formation and limited liability company agreement of
Radio One of Charlotte, LLC, until the earlier of their resignation or removal
or until their respective successors are duly elected or appointed and
qualified, as the case may be.  As of the Effective Time of the Company/LLC
Merger, the sole member of Radio One of Charlotte, LLC, shall be NewCo.

            (b) The officers and directors of Radio One immediately prior to the
Effective Time of the NewCo/ROI Merger shall be the officers and directors of
Radio One as of the Effective Time of the NewCo/ROI Merger, until the earlier of
their resignation or removal or until their respective successors are duly
elected or appointed and qualified, as the case may be, in accordance with the
Certificate of Incorporation and by-laws of Radio One.

    1.6.    Stock.  As of the Effective Time of the NewCo/ROI Merger, by virtue
            -----
of the Mergers and without need for any action by any party, all shares of
Company Stock shall be converted as provided by Section 1.7 and shall no longer
be outstanding, all such Company Stock being automatically canceled and retired
and ceasing to exist, and the Shareholders shall no longer have any rights with
respect thereto, except to receive the Merger Consideration as set forth herein.

    1.7.    Merger Consideration.
            --------------------

            (a) As of the Closing, each Shareholder shall cease to have any
rights with respect to its shares of Company Stock, and for all purposes, the
Company Stock shall be converted into the right to receive the consideration
provided for pursuant to Sections 1.7(b) and 1.7(c) below (the "Merger
Consideration").

            (b) Each share of Class A Common Stock shall be converted into the
right to receive a pro rata share (as among the other shares of Class A Common
Stock) of the Minority Cash Amount; provided, however, that each holder of Class
                                    --------  -------
A Common Stock may elect, upon written notice to Radio One given not less than
thirty (30) days after the date hereof, to forego all of the cash consideration
due such holder hereunder and for its shares of Class A Common Stock to instead
be converted into the right to receive, upon the due execution and delivery of a
Subscription Agreement, the number of shares of Radio One's common stock
determined by dividing the cash consideration that would have been paid
hereunder to such holder by the Closing Price.

                                     -3-
<PAGE>

          (c) Each share of Class B Common Stock shall be converted into the
right to receive a pro rata share (as among the other shares of Class B Common
Stock) of (i) the Cash Amount minus the aggregate amount cash to be paid to the
                              -----
holders of Class A Common Stock pursuant to Section 1.7(b), (ii) upon the due
execution and delivery of a Subscription Agreement, the Stock Consideration

minus the number of shares of Radio One common stock issued to the holders of
-----
the Class A Common Stock pursuant to Section 1.7(b) minus the Escrowed Shares,
                                                    -----
(iii) the rights to the Escrowed Shares under Section 1.8, and (iv) plus or
minus the amount of any adjustment to the Merger Consideration to be paid or
received pursuant to Section 1.10.

          (d) Radio One shall issue the Stock Consideration and pay the Cash
Amount on the Closing Date upon presentation and surrender to Radio One of the
certificates representing all of the issued and outstanding Company Stock duly
endorsed in blank or with separate executed stock powers attached.  Payment of
the Cash Amount shall be in immediately available funds pursuant to written
instructions of the Majority Shareholder to be delivered to Radio One no later
than three (3) business days prior to Closing.

    1.8.    Post-Closing Escrow.  As of the Effective Time, the Escrowed Shares
            -------------------
shall be delivered to the Escrow Agent (as hereinafter defined) pursuant to the
Post-Closing Escrow Agreement as an indemnification and adjustment fund (without
limiting Radio One's other rights under this Agreement).  The Escrowed Shares
shall be distributed as follows:  (i) if after Closing the Merger Consideration
is adjusted in favor of Radio One under Section 1.10, then Radio One shall be
entitled to redeem shares from the Escrowed Shares equal to the amount of such
adjustment; (ii) if after Closing a Deficiency (as defined in Section 10.3(a))
is established pursuant to Article 10, then Radio One shall be entitled to
redeem shares from the Escrowed Shares equal to the amount of such Deficiency;
and (iii) on the date twelve months after Closing, the Escrow Agent shall
release to the holders of Class B Common Stock shares from the Escrowed Shares
in excess of any such adjustment and Deficiency amounts delivered to Radio One
and the amount of any pending indemnification claims made under Section 10.2(a).
The number of shares of Radio One common stock to be redeemed shall be
determined by dividing the amount of the adjustment, Deficiency or claim
therefor by the Closing Price.

    1.9.    Deposit.  One business day after the date of this Agreement, Radio
            -------
One shall deposit the Escrow Amount in cash (the "Deposit") into escrow with
Wilmington Trust Company (the "Escrow Agent"), pursuant to the Escrow Agreement
of even date herewith among Radio One, the Majority Shareholder, and the Escrow
Agent.  At Closing, the Deposit and all interest earned thereon shall be
disbursed to or at the direction of Radio One (and Radio One may elect to apply
all or part of such amounts to payment of the Cash Amount).  If this Agreement
is terminated by the Majority Shareholder pursuant to Section 11.1(g) or
11.1(h), then the indebtedness of the Davis Companies to Radio One in the amount
of $350,000 together with accrued interest thereon shall be forgiven and the
note dated December 15, 1999, representing same returned marked paid and the
Deposit shall be disbursed to the Shareholders as liquidated damages and such
forgiveness and disbursement shall be the sole and exclusive remedy of the
Shareholders and the Company.  The Majority Shareholder and the Company hereby
waive all other legal and equitable rights and remedies each may otherwise have
as a result of any breach or default by Radio One under this Agreement.  If this
Agreement is terminated without a Closing for any other reason, then the Deposit
and all interest thereon shall be returned to Radio One.  The parties shall each
instruct the Escrow Agent to disburse the Deposit and all interest thereon to
the party entitled thereto and shall not, by any act or omission, delay or
prevent any such disbursement.

                                     -4-
<PAGE>

    1.10.  Adjustment.
           ----------

           (a) Not later than five (5) business days before Closing, the
Majority Shareholder shall deliver to Radio One a statement (the "Preliminary
Adjustment Statement") that sets forth a good faith estimate of the amount of
the Consolidated Accounts Payable, the Consolidated Accounts Receivable, the
Consolidated Current Assets, the Consolidated Liabilities (including the
Transaction Fees and Costs) at Closing and the Majority Shareholder's
calculation of the Adjusted Consideration and the Merger Consideration. The
Preliminary Adjustment Statement shall show the Majority Shareholder's
calculations in reasonable detail and shall be accompanied by a good faith,
estimated balance sheet of the Davis Companies (as of the date of the
Preliminary Adjustment Statement) prepared by the Company Accountant in
accordance with GAAP and other supporting documentation. The Preliminary
Adjustment Statement shall also be accompanied by a certificate of the Majority
Shareholder (the "Preliminary Adjustment Certificate") certifying that the
Shareholders' calculations are in accordance with the provisions of this
Agreement.

           (b) Not later than 90 days after Closing, Radio One shall deliver to
the Majority Shareholder a statement (the "Final Adjustment Statement") that
sets forth the amount of the Consolidated Accounts Payable, the Consolidated
Accounts Receivable, the Consolidated Current Assets and the Consolidated
Liabilities at Closing and Radio One's calculation of the Adjusted Consideration
and the Merger Consideration for each Shareholder. The Final Adjustment
Statement shall show Radio One's calculations in reasonable detail and shall be
accompanied by a balance sheet of the Company (as of the Closing Date) prepared
by Radio One's Accountant in accordance with GAAP and other supporting
documentation. The Final Adjustment Statement shall also be accompanied by a
certificate of Radio One certifying that Radio One's calculations are in
accordance with the provisions of this Agreement.

           (c) If the Majority Shareholder disputes any item in the Final
Adjustment Statement, the Majority Shareholder shall notify Radio One in writing
thereof (specifying the amount of each item in dispute and setting forth in
detail the basis for each item in dispute) within ten (10) business days of the
Majority Shareholder's receipt of the Final Adjustment Statement. If the
Majority Shareholder does not notify Radio One of any such dispute within such
time, then the Final Adjustment Statement shall be deemed to be final and
binding on the parties. In the event of such a dispute, the parties shall
negotiate in good faith to attempt to reconcile their differences. If such
dispute has not been resolved within twenty (20) business days, the parties
shall submit the items remaining in dispute for resolution to the Independent
Accounting Firm, which shall, as promptly as practicable but in any event within
twenty (20) business days, resolve the disputed items and report to the parties,
and such report shall have the effect of an arbitral award and shall be final
and binding on the parties. The fees and disbursements of the Independent
Accounting Firm shall be allocated between the parties in the same proportion as
the award of the amount in dispute.

           (d) If the Merger Consideration as determined in accordance with
Section 1.10(c) differs from the amount calculated at the Effective Time, then
within five (5) business days of such determination, the parties shall make
appropriate settlement thereof. In any such settlement, the number of shares of
Radio One stock subject to settlement shall be determined by dividing the amount
of the settlement by the Closing Price.

    1.11    Closing.  The consummation of the Mergers (the "Closing") shall take
            -------
place at a date and time designated by Radio One after the date of the FCC
Consent pursuant to the FCC's initial order, but in no event later than the
earlier of: (a) nine months after the date the FCC gives public notice of the
filing of the FCC Applications (the "Final Closing Date"), (b)

                                     -5-
<PAGE>

ten business days after the date the FCC Consent becomes Final, or (c) at Radio
One's election, upon ten business days notice after the date the FCC Consent is
granted by initial order, in any case subject to the satisfaction or waiver of
the last of the conditions required to be satisfied or waived pursuant to
Articles 7 or 8 below (other than those requiring a delivery of a certificate or
other document, or the taking of other action, at the Closing). Alternatively,
the Closing may take place at such other place, time or date as the parties may
mutually agree upon in writing. The date on which the Closing is to occur is
referred to herein as the "Closing Date."

    1.12.   FCC Applications.  As soon as possible (but in no event later than
            ----------------
five business days after the date of this Agreement) the parties shall file
applications with the FCC (the "FCC Applications") requesting the FCC's written
consent to the transfer of control of the Company to Radio One pursuant to this
Agreement, including the Merger Reorganization.  The parties shall diligently
take all steps that are necessary, proper or desirable to expedite the
prosecution of the FCC Applications to a favorable conclusion.  Each party shall
promptly provide the other with a copy of any pleading, order or other document
served on it relating to the FCC Applications, shall furnish all information
required by the FCC, and shall be represented at all meetings or hearings
scheduled to consider the FCC Applications.  The FCC's written consent to the
FCC Applications is referred to herein as the "FCC Consent."

    1.13.  Hart-Scott-Rodino.  If necessary, as soon as possible (but in no
           -----------------
event later than ten business days after the date of this Agreement), the
parties shall prepare and file with the Federal Trade Commission and the United
States Department of Justice any documents that may be necessary to comply with
the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act")
(including a request for early termination of the waiting period thereunder) and
shall thereafter promptly furnish all materials thereafter requested by such
agencies.

    1.14.   Employment Agreement.  At Closing, Radio One and the Majority
            --------------------
Shareholder shall enter into an Employment Agreement in the form attached hereto
as Exhibit A.
   ---------

    1.15.   Preclosing Reorganizations.  Notwithstanding anything herein to
            --------------------------
the contrary, prior to and at Closing, the Company, the Majority Shareholder and
Radio One shall undertake the transactions when and as described in Schedule
                                                                    --------
1.15 ("Merger Reorganizations").
----

ARTICLE 2:  COMPANY REPRESENTATIONS AND WARRANTIES
            --------------------------------------

     To induce Radio One to enter into this Agreement and to consummate the
transactions contemplated hereby, the Majority Shareholder and the Company
represent and warrant to Radio One as follows:

    2.1     Organization.  The Davis Companies are duly organized, validly
            ------------
existing and in good standing under the laws of the jurisdiction of their
organization (as first set forth above), and, except as set forth in Schedule
                                                                     --------
2.1, are in good standing in each state or other jurisdiction in which their
---
assets are located or in which their business or operations as presently
conducted make such qualification necessary.  The Davis Companies have the
requisite power and authority to own and operate the Davis Stations, to carry on
the Davis Stations' business as now conducted by them, and to execute and
deliver this Agreement and all of the other agreements and instruments to be
executed and delivered by the Company pursuant hereto (collectively, the
"Company Ancillary Agreements"), to consummate the transactions contemplated
hereby and thereby and to comply with the terms, conditions and provisions
hereof and thereof.

    2.2     Capitalization.  The entire authorized capital stock and the
            --------------
entire issued and outstanding capital stock of the Davis Companies are described
on Schedule 2.2.  The
   ------------

                                     -6-
<PAGE>

Shareholders own and hold all legal and beneficial right, title and interest in
and to the Company Stock (being all of the issued and outstanding shares of
stock of the Company), the Company owns and holds all legal and beneficial
right, title and interest in and to all of the issued and outstanding shares of
capital stock of DBA (the "DBA Stock") and DBC (the "DBC Stock"), and DBA owns
and holds all legal and beneficial right, title and interest in and to all of
the issued and outstanding shares of capital stock of DBE (the "DBE Stock") (the
Company Stock, DBA Stock, DBC Stock and DBE Stock, collectively, the "Davis
Company Shares"), in each case free and clear of Liens except as set forth in
Schedule 2.2. All Davis Company Shares have been duly authorized, are validly
------------
issued, fully paid, and nonassessable, and the Company Stock is held of record
by the persons set forth on Schedule 2.2. No shares of the Davis Companies are
                            ------------
held in treasury. Except as provided by this Agreement, there are no outstanding
subscriptions, options, warrants, rights, calls, commitments, conversion rights,
rights of exchange, plans or other agreements of any character providing for the
purchase, issuance or sale of any shares of the Davis Companies. There are no
outstanding or authorized stock appreciation, phantom stock, profit
participation, or similar rights with respect to the Davis Companies. Except as
set forth in Schedule 2.2, there are no stockholder agreements, voting trusts,
             ------------
proxies, or other agreements or understandings with respect to the voting or
transfer of any shares of the Davis Companies. Schedule 2.2 contains a complete
                                               ------------
listing of all the officers and directors of the Davis Companies.

    2.3     Subsidiaries and Investments.  Except for the Station Subs and the
            ----------------------------
Columbus Sub, the Davis Companies have no Subsidiaries.  None of the Davis
Companies is a member of (nor is any part of their business conducted through)
any partnership, nor are any of the Davis Companies a participant in any joint
venture or similar arrangement.  None of the Davis Companies owns directly or
indirectly, any other capital stock or other equity or ownership or proprietary
interest in any corporation, partnership, association, trust, joint venture.

    2.4     Books and Records. The minute books of the Davis Companies, true and
            -----------------
correct copies of which have been provided to Radio One, contain materially
accurate records of all meetings of, and corporate actions taken by, (including
actions taken by written consent) the shareholders and directors of the Davis
Companies. At Closing all of the books and records of the Davis Companies will
be in the possession of the Company.

    2.5     Authority.  The execution, delivery and performance of this
            ---------
Agreement and the Company Ancillary Agreements by the Company have been duly
authorized and approved by the board of directors of the Company and do not
require any further authorization or consent of the Company except as provided
in Section 5.10 below. This Agreement is, and each Company Ancillary Agreement
when executed and delivered by the Company and the other parties thereto will
be, a legal, valid and binding agreement of the Company enforceable in
accordance with its respective terms, except in each case as such enforceability
may be limited by bankruptcy, moratorium, insolvency, reorganization or other
similar laws affecting or limiting the enforcement of creditors' rights
generally and except as such enforceability is subject to general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

    2.6     No Conflicts.  Except as set forth in Schedule 2.6, neither the
            ------------                          ------------
execution and delivery by the Company of this Agreement and the Company
Ancillary Agreements nor the consummation by the Company of any of the
transactions contemplated hereby or thereby nor compliance by the Company with
or fulfillment by the Company of the terms, conditions and provisions hereof or
thereof will:

           (i) conflict with, result in a breach of the terms, conditions or
provisions of, or constitute a default, an event of default or an event creating
rights of acceleration, termination or cancellation or a loss of rights under,
or result in the creation or imposition of

                                     -7-
<PAGE>

any Lien upon any of the Assets under, the charter or other organizational
documents of any of the Davis Companies, or any contract, lease, agreement or
instrument, or any governmental license, permit or authorization, or any
judgment, order, award or decree to which any of the Davis Companies are a party
or any of the Assets are subject or by which any of the Davis Companies are
bound, or any statute, other law or regulatory provision affecting any of the
Davis Companies or the Assets; or

            (ii) require the approval, consent, authorization or act of, or the
making by any of the Davis Companies of any declaration, filing or registration
with, any third party or any foreign, federal, state or local court,
governmental or regulatory authority or body, except for such of the foregoing
as are necessary pursuant to the HSR Act and the Communications Act.

    2.7     Financial Statements.
            --------------------

            (a) The Majority Shareholder has furnished Radio One with audited
financial statements used by the Davis Companies in the preparation of its
federal and state tax returns and copies of its filed federal and state tax
returns for fiscal years ending June 30, 1996, 1997, 1998 and 1999 as well as
unaudited monthly financial statements for the period from July 1, 1999 through
February 29, 2000. The financial statements described in the preceding sentences
and in Section 5.2 shall be collectively referred to as "Financial Statements."
The Financial Statements: (x) have been and will be prepared in accordance with
GAAP applied on a consistent basis throughout the periods involved and as
compared with prior periods subject in the case of unaudited statements to the
absence of notes and normal year-end adjustments after audit; and (y) fairly
present the Davis Companies' financial position, income, expenses, assets,
liabilities, and the results of operations of the Davis Companies as of the
dates and for the periods indicated. There has been no sale of material
properties or assets, other than broadcast time, or loss or material injury to
the business and no material adverse change in the business, assets, properties
or condition (financial or otherwise) of the Davis Companies since the
preparation of the most recent annual or monthly Financial Statement. No event
has occurred that would make any Financial Statement misleading in any material
respect.

            (b) Except as reflected in the balance sheets included in the
Financial Statements dated January 31, 2000 (the "Balance Sheet Date"),
including the notes thereto or otherwise disclosed in this Agreement or the
schedules hereto, and except for the current liabilities and obligations
incurred in the ordinary course of business of the Davis Companies (not
including for this purpose any tort-like liabilities or breach of contract)
since the Balance Sheet Date, there exist no liabilities or obligations of the
Davis Companies, contingent or absolute, matured or unmatured, known or unknown
of the type that would, in accordance with GAAP, consistently applied, be
required to be set forth in the Financial Statements. Since the Balance Sheet
Date: (i) the Davis Companies have not made any contract, agreement or
commitment or incurred any liability or obligation of any kind or nature except
in the ordinary course of business and consistent with past business practices;
(ii) there has not been any discharge or satisfaction of any obligation or
liability owed by the Davis Companies, which is not in the ordinary course of
business or which is inconsistent with past business practices; (iii) there has
been no material damage, destruction or loss to any of the Assets or any asset
or property, tangible or intangible, of the Davis Companies; (iv) the Davis
Companies have operated their business in the ordinary course; and (v) the Davis
Companies have not increased the salaries or any other compensation of any of
its employees or agreed to the payment of any bonuses, except in the ordinary
course of business consistent with existing employment practices. The monthly
balance sheets: (x) have been and will be prepared on a consistent basis
throughout the periods involved and as compared with prior periods; and (y)
fairly present the Davis Companies' financial position, income, expenses,
assets, liabilities, and

                                     -8-
<PAGE>

results of operations as of the dates and for the periods indicated, subject to
year end adjustments which do not materially affect the operations of the Davis
Companies.

    2.8     Tax Matters.
            -----------

            (a) The Davis Companies have been corporations for U.S. federal
income tax purposes at all times since their formation up to and including the
Closing Date and have never elected to be treated as another kind or type of
entity.

            (b) The Davis Companies have duly filed or caused to be filed all
Tax Returns required to have been filed by or with respect to the Davis
Companies, and each such Tax Return correctly and completely reports the Tax
liability required to be reported thereon. The Davis Companies have paid all
Taxes (whether or not shown on any Tax Return) owed by or with respect the Davis
Companies.

            (c) The amount of the liability of the Davis Companies for unpaid
Taxes as of the Balance Sheet Date did not exceed the current liability accruals
for Taxes (excluding any reserves for deferred Taxes) set forth on the Financial
Statements dated as of the Balance Sheet Date. The amount of the liability of
the Davis Companies for unpaid Taxes as of the date of any Financial Statements
provided pursuant to Section 5.2 will not exceed the current liability accruals
for Taxes (excluding any reserves for deferred Taxes) set forth on such
Financial Statements. The amount of the liability of the Davis Companies for
unpaid Taxes as of the Closing Date will not exceed the current liability
accruals for Taxes (excluding any reserves for deferred Taxes) set forth on the
Financial Statements dated as of the Balance Sheet Date, as such accruals are
adjusted on the books and records of the Davis Companies through the Closing
Date in accordance with past custom and practice, excluding, however, Taxes
arising from the spinoff of the Columbus Stations and the Columbus Sub.

            (d) The Davis Companies are not a party or subject to any agreement
extending the time within which to file any Tax Return. No claim has ever been
made by any Tax Authority in any jurisdiction in which the Davis Companies do
not file Tax Returns that they are or may be subject to taxation by that
jurisdiction. The Davis Companies have not waived any statute of limitations in
respect of Taxes or agreed to any extension of time with respect to any Tax
assessment or deficiency.

            (e) The Davis Companies have withheld and paid over all Taxes
required to have been withheld and paid over, and complied with all information
reporting and record-keeping requirements with respect to, any amounts paid or
owing to any employee, creditor, independent contractor or other third party.

            (f) No Tax Proceedings are pending with regard to any Tax Returns or
Taxes of the Davis Companies, and no notice has been received by the Davis
Companies (whether in writing or orally) of the expected commencement of a Tax
Proceeding. No issues have been raised in any audit or examination by or with
respect to the Davis Companies which, by application of similar principles,
could be reasonably expected to result in a proposed deficiency for any other
period not so examined. The Davis Companies have neither received any written
ruling of a Tax Authority relating to Taxes nor entered into any closing
agreement or similar written binding agreement with a Tax Authority relating to
Taxes.

            (g) Schedule 2.8 attached hereto lists all material federal, state,
                ------------
local and foreign income and franchise Tax Returns required to be filed by or
with respect to the Davis Companies for the prior three Taxable Periods. With
respect to each such Tax Return, Schedule 2.8 indicates if such Tax Return has
                                 ------------
been audited and, if so, whether it is open or closed. The Davis Companies have
delivered to Radio One complete and correct copies of all

                                     -9-
<PAGE>

federal, state, local and foreign income and franchise Tax Returns filed by or
with respect to, and all Tax examination reports and statements of deficiencies
assessed against or agreed to by, the Davis Companies for the prior three
Taxable Periods.

            (h) The Davis Companies are neither a party to any Tax allocation,
Tax indemnity, Tax sharing agreement, or any similar arrangement pursuant to
which any of them have agreed to be liable for Taxes of any other person or
entity nor do any of them have any liability for Taxes of any other person or
entity as a transferee or successor.

            (i) Except for an adjustment of not more than $200,000 to convert
from the cash to the accrual method of accounting, the Davis Companies will not
be required to include any adjustment in taxable income in any Taxable Period
ending after the Closing Date under Section 481 of the Code (or any similar
provision of the Tax laws of any jurisdiction) as a result of any change in any
method of accounting occurring in a Taxable Period ending on or before the
Closing Date. No Tax Authority has proposed any such change in any accounting
method. The Davis Companies use the cash method of accounting for income Tax
purposes.

            (j) There are (and immediately following the Closing there will be)
no Liens on any of the assets of the Davis Companies relating or attributable to
Taxes (other than liens for Taxes not yet due and payable). No deficiencies for
any Taxes have been asserted or assessed against the Davis Companies which, if
unpaid, might result in a Lien on any of the assets of the Davis Companies
relating or attributable to the taxes (other than Liens for Taxes not yet due
and payable).

            (k) There is no contract or agreement covering any employee or
former employee of the Davis Companies that, individually or collectively, could
give rise to the payment of any amount (or portion thereof) that would not be
deductible pursuant to Sections 280G, 404 or 162 of the Code.

            (l) The Davis Companies' net operating losses as of June 30, 1999
for federal and Georgia state tax purposes are as set forth on Schedule 2.8.
                                                               ------------

    2.9     Assets.  The Assets include all the assets used or held for use in
            ------
the business or operation of the Davis Stations. The Davis Companies have no
business or operations other than the business and operation of the Davis
Stations. The Davis Companies have good title to and ownership of the Assets,
free and clear of Liens, except for those described in Schedule 2.9 and for
                                                       ------------
the Permitted Encumbrances.

    2.10    FCC Authorizations.
            ------------------

            (a) The Station Subs are the holders of the FCC Authorizations
listed and described on Schedule 2.10. Such FCC Authorizations constitute all of
                        -------------
the licenses and authorizations required under the Communications Act of 1934,
as amended (the "Communications Act"), or the rules, regulations and policies of
the FCC for, and used in the operation of, the Davis Stations. The FCC
Authorizations are in full force and effect and have not been revoked,
suspended, canceled, rescinded or terminated and have not expired. There is not
pending or threatened any action by or before the FCC to revoke, suspend,
cancel, rescind or modify any of the FCC Authorizations (other than proceedings
to amend FCC rules of general applicability), and there is not now issued or
outstanding or pending or threatened, by or before the FCC, any order to show
cause, notice of violation, notice of apparent liability, or notice of
forfeiture or complaint against the Davis Companies or the Davis Stations.

            (b) Except as set forth in Schedule 2.10: (i) all reports and
                                       -------------
filings required to be filed with, and all regulatory fees required to be paid
to, the FCC by the Davis

                                    -10-
<PAGE>

Companies with respect to the Davis Stations have been timely filed and paid;
(ii) all such reports and filings are accurate and complete; (iii) the Davis
Companies maintain public files for the Davis Stations as required by FCC rules;
(iv) with respect to FCC licenses, permits and authorizations, the Davis
Companies are operating only those facilities for which an appropriate FCC
Authorization has been obtained and is in effect, and the Davis Companies are
meeting the conditions of each such FCC Authorization; and (v) the Davis
Stations are operating in compliance in all material respects with the FCC
Authorizations, the Communications Act, and the rules, regulations and policies
of the FCC.

            (c) The Majority Shareholder and the Davis Companies are aware of no
facts indicating that the Shareholders, the Davis Companies or the Davis
Stations are not in compliance with all requirements of the FCC, the
Communications Act, or any other applicable federal, state and local statutes,
regulations and ordinances. The Majority Shareholder and the Davis Companies are
aware of no facts and Company has received no notice or communication, formal or
informal, indicating that the FCC is considering revoking, suspending,
canceling, rescinding or terminating any FCC Authorization.

            (d) The operation of the Davis Stations does not cause or result in
exposure of workers or the general public to levels of radio frequency radiation
in excess of the "Radio Frequency Protection Guides" recommended in "American
National Standard Safety Levels with Respect to Human Exposure to Radio
Frequency Electromagnetic Fields 3 kHz to 300 GHz" (ANSI/IEEE C95.1-1992) issued
by the American National Standards Institute, adopted by the FCC effective
October 15, 1997, and described in OET Bulletin No. 65. Renewal of the FCC
Authorizations would not constitute a "major action" within the meaning of
Section 1.1301, et seq., of the FCC's rules.
                -- ---

            (e) Each communications tower structure used in the operation of the
Davis Stations (whether owned or leased) has been registered under the rules and
regulations of the FCC, and the Federal Aviation Administration has issued a
determination of no hazard to air navigation with respect to each such tower for
which such a determination is required.

    2.11    Personal Property.  Schedule 2.11 contains a list of all machinery,
            -----------------   -------------
equipment, vehicles, furniture and other tangible personal property owned by the
Davis Companies as of the date hereof with a value in excess of $2,500.  Each
item of Tangible Personal Property is in good operating condition and repair, is
free from material defect or damage, is functioning in the manner and purposes
for which it was intended, and has been maintained in accordance with industry
standards.

    2.12    Real Property.  Schedule 2.12 contains a description of all real
            -------------   -------------
property owned or leased by the Davis Companies.  One of the Davis Companies has
good and marketable fee simple title to all owned Real Property (the "Owned Real
Property"), including all real property described on Schedule 2.12 as owned, and
                                                     -------------
including all buildings and other improvements thereon.  Schedule 2.12 includes
                                                         -------------
a description of each lease or similar agreement under which any of the Davis
Companies are lessee or licensee of, or holds, uses or operates, any real
property in the business or operation of the Davis Stations (the "Real Property
Leases").  The Owned Real Property includes, and the Real Property Leases
provide, sufficient access to the Davis Stations' facilities without the need to
obtain any other access rights.  Neither the whole nor any part of any Real
Property is subject to any pending, or to the knowledge of the Company
threatened, suit for condemnation or other taking by any public authority.  All
buildings and other improvements included in the Real Property are in good
operating condition and repair, and free from material defect or damage, and
comply with applicable zoning, health and safety laws and codes.  The Majority
Shareholder has delivered to Radio One copies of all title insurance policies in
its possession that are applicable to the Real Property.

                                    -11-
<PAGE>

    2.13    Contracts.  Schedule 2.13 contains a complete and correct list of
            ---------   -------------
all Station Contracts as of the date hereof (other than Time Sales Agreements).
Each of the Station Contracts (including without limitation each of the Real
Property Leases) constitutes a valid and binding obligation of Company and, to
the best knowledge of Company, the other parties thereto (subject to bankruptcy,
insolvency, reorganization or other similar laws relating to or affecting the
enforcement of creditors' rights generally) and is in full force and effect and
(except as set forth in Schedule 2.6 and except for those Station Contracts
                        ------------
which by their terms will expire prior to the Closing Date or will be otherwise
terminated prior to the Closing Date in accordance with the provisions hereof)
may be assigned or transferred to the Surviving Companies pursuant to this
Agreement and will be in full force and effect at the time of such transfer or
assignment, in each case without breaching the terms thereof or resulting in the
forfeiture or impairment of any rights thereunder and without the consent,
approval or act of, or the making of any filing with, any other party.  The
Davis Companies have performed in all material respects their obligations under
each of the Station Contracts, and the Davis Companies are not in, or to the
best knowledge of the Company alleged to be in, breach or default under any of
the Station Contracts, and, to the best knowledge of the Company, no other party
to any of the Station Contracts has breached or defaulted thereunder, and no
event has occurred and no condition or state of facts exists which, with the
passage of time or the giving of notice or both, would constitute such a default
or breach by the Davis Companies or, to the best knowledge of the Company, by
any such other party.  Complete and correct copies of each of the Station
Contracts, together with all amendments thereto, have been delivered to Radio
One by the Majority Shareholder and the Company.

    2.14    Intangible Property.  The Davis Companies have all right, title and
            -------------------
interest in and to all trademarks, service marks, trade names, copyrights,
Websites and all other intangible property necessary to conduct its business and
operations as presently operated.  Schedule 2.14 contains a description of all
                                   -------------
material Intangible Property.  The Davis Companies have received no notice of
any claim that any Intangible Property or the use thereof conflicts with, or
infringes upon, any rights of any third party (and there is no basis for any
such claim of conflict) other than any claim which could not reasonably be
expected to have a material adverse effect on the Davis Companies.  The Davis
Companies have the sole and exclusive right to use the Intangible Property.  No
service provided by the Davis Companies or any programming or other material
used, broadcast or disseminated by the Davis Stations infringes upon any
copyright, patent or trademark of any other party.

    2.15    Employees.  Schedule 2.15 contains a list of all employees of the
            ---------   -------------
Davis Companies as of the date hereof and their position and rate of
compensation, and a description of all the Davis Companies' employee benefit
plans.  The Majority Shareholder and the Company have delivered to Radio One
copies of all the Davis Companies' handbooks, policies and procedures.  The
Davis Companies have complied in all material respects with all labor and
employment laws, rules and regulations applicable to their business, including
without limitation those which relate to prices, wages, hours, discrimination in
employment and collective bargaining, and are not liable for any arrears of
wages or any taxes or penalties for failure to comply with any of the foregoing.
The Davis Companies are not a party to any collective bargaining agreement and
no collective bargaining agreement is currently being negotiated by the Davis
Companies.  There is no (i) unfair labor practice charge or complaint against
the Davis Companies in respect of its business pending or threatened before the
National Labor Relations Board, any state labor relations board or any court or
tribunal, or (ii) strike, dispute, request for representation, slowdown or
stoppage pending or threatened in respect of its business, in each case, other
than any such items which could not reasonably be expected to result in a
material adverse effect upon the Davis Companies.

    2.16    Employee Benefit Matters.  Except as set forth in Schedule 2.15, the
            ------------------------                          -------------
Davis

                                    -12-
<PAGE>

Companies have never maintained, sponsored or contributed to, or been
obligated to contribute to, any employee pension benefit plan as defined in
Section 3(2) of ERISA.  All employee benefit plans (including those defined in
Section 3(3) of ERISA) and all benefits arrangements that have been maintained,
sponsored or contributed to by the Davis Companies have been maintained,
administered and funded in material compliance with their terms and, both as to
form and operation, with the requirements prescribed by any and all statutes,
orders, rules and regulations which are applicable to such plans, including but
not limited to ERISA and the Code.  There are no unfunded benefit liabilities
and no accumulated funding deficiencies in respect of any such employee benefit
plans.  As to each employee benefit for which an annual report, including
schedules, or comparable report is required to be filed under ERISA or the Code,
no liabilities, with respect to such plan, existed on the dates of such annual
report except as disclosed therein, and no material adverse change has occurred
with respect to the financial data covered by such annual report since the date
thereof.  Neither the Davis Companies nor any such employee benefit plan will
have at Closing any present or future obligation to make any payment to or with
respect to any present or former employee of the Davis Companies pursuant to any
retiree medical benefit plan, or other retiree welfare plan (within the meaning
of Section 3(1) of ERISA), and no condition exists which would prevent the Davis
Companies from amending or terminating any such employee benefit plan, including
any such welfare plan.  Each such welfare plan has been operated in compliance
with the provisions of Part 6 of Title I of ERISA and Sections 162 and 4980B of
the Code at all times.

    2.17    Compliance with Law; Litigation.  The Davis Companies have complied
            -------------------------------
in all material respects with all laws, regulations, rules, writs, injunctions,
ordinances, franchises, decrees or orders of any court or of any foreign,
federal, state, municipal or other governmental authority which are applicable
to them, the Assets, the Davis Stations or their business.  Except as set forth
in Schedule 2.17, as of the date hereof there is no action, suit or proceeding
   -------------
pending, or to the best knowledge of the Company threatened, against the Davis
Companies, and there are no claims or investigations pending, or to the best
knowledge of the Company threatened, against the Davis Companies.  There are no
unsatisfied judgments issued or outstanding against the Davis Companies.

    2.18    Insurance.  The Davis Companies maintain insurance policies bearing
            ---------
the policy numbers with the companies set forth on Schedule 2.18 hereto.  All of
                                                   -------------
such policies are in full force and effect and the Davis Companies are not in
default thereunder.  The Davis Companies have not received notice from any
issuer of any such policies of its intention to cancel, terminate or refuse to
renew any policy issued by them.

    2.19    Environmental.  No hazardous or toxic substance or waste (including
            -------------
without limitation petroleum products) or other material regulated under any
applicable environmental, health or safety law (each a "Contaminant") has been
generated, stored, transported or released (each a "Release") on, in, from or to
any of the Assets in material violation of applicable law.  Neither the Davis
Companies nor any of the Assets are subject to any order from or agreement with
any governmental authority or private party respecting (i) any environmental,
health or safety law, (ii) any environmental clean-up, removal, prevention or
other remedial action or (iii) any obligation or liability arising from the
Release of a Contaminant.  Neither the Davis Companies nor any of the Assets
includes any underground storage tanks installed or used by the Davis Companies
or surface impoundment containing hazardous materials installed or used by the
Davis Companies, or to the best knowledge of the Company installed by others or
any asbestos containing material, or any polychlorinated biphenyls.  The Davis
Companies have not received any notice or claim to the effect that they are or
may be liable as a result of the Release of a Contaminant.  To the best
knowledge of the Company neither the Davis Stations nor any of the Assets is the
subject of any investigation by any governmental authority with respect to a
Release of a Contaminant.  The Majority Shareholder and the Company have
delivered to Radio One copies of all environmental

                                    -13-
<PAGE>

surveys, analyses and assessments in their possession relating to any of the
Real Property.

    2.20    Affiliates.  No Shareholders or relative of any of the Shareholders
            ----------
and no Affiliate of the Davis Companies has an interest in, or option to
acquire, any of the Assets.  None of the Davis Companies, the Shareholders, any
Affiliate of the Davis Companies or the Shareholders, or any officer or director
of the Davis Companies possesses, directly or indirectly, any ownership interest
in, or is a director, officer or employee of, any person which is a supplier,
advertiser, customer, lessor, lessee, licensor, licensee, developer, competitor
or potential competitor of the Davis Companies.  Ownership of securities of a
company whose securities are registered under the Securities Exchange Act of
1934 of 5% or less of any class of such securities shall not be deemed to be a
financial interest for purposes of this Section.

    2.21    Guaranties, Indemnities, Etc.  The Davis Companies are not a
            ----------------------------
guarantor nor otherwise liable for any liability or obligation (including
indebtedness) of any other person. The Davis Companies have not agreed to
indemnify or otherwise hold harmless any person from any liability, known or
unknown, existing or future, direct or indirect, contingent or primary. The
Davis Companies are not a party to any non-competition, covenant-not-to-compete
or similar agreement except as the beneficiary of any such agreement.

    2.22    No Finder.  No broker, finder or other person is entitled to a
            ---------
commission, brokerage fee or other similar payment in connection with this
Agreement or the transactions contemplated hereby as a result of any agreement
or action of the Shareholders or the Davis Companies or any party acting on
their behalf.

    2.23    Powers of Attorney   The Davis Companies have not granted a power of
            ------------------
attorney to any person or entity.

    2.24    Year 2000 Compliance.  All of the Assets (including all systems,
            --------------------
machinery, information technology, computer software and hardware, and other
data sensitive technology) are operating without error or interruption related
to date data (meaning data or input that includes an indication of or reference
to a date) and without other problems commonly referred to as "year 2000
problems."

    2.25    Disclosure.  With respect to the Davis Companies, the Shareholders,
            ----------
the Company Stock, the Davis Stations and the Assets, this Agreement, the
Company Ancillary Agreements and all information and other materials delivered
to Radio One pursuant to this Agreement do not and will not contain any untrue
statement of material fact or omit to state a material fact required to be made
in order to make the statements herein and therein not misleading in light of
the circumstances in which they are made.

ARTICLE 3:  MAJORITY SHAREHOLDER REPRESENTATIONS AND WARRANTIES
            ---------------------------------------------------

    To induce Radio One to enter into this Agreement and to consummate the
transactions contemplated hereby, the Majority Shareholder represents and
warrants to Radio One as follows:

    3.1     Authority.  Each Shareholder resides in the jurisdiction set forth
            ---------
on Schedule 2.2 hereto and has the requisite power and authority to execute and
   ------------
deliver all of the agreements and instruments to be executed and delivered by
each such Shareholder (collectively, the "Shareholder Ancillary Agreements"), to
consummate the transactions contemplated hereby and thereby and to comply with
the terms, conditions and provisions hereof and thereof.

    3.2    Binding Effect.  Each of the Shareholder Ancillary Agreements when
           --------------
executed

                                    -14-
<PAGE>

and delivered by each such Shareholder and the other parties thereto will be, a
legal, valid and binding agreement of each such Shareholder enforceable in
accordance with its respective terms, except in each case as such enforceability
may be limited by bankruptcy, moratorium, insolvency, reorganization or other
similar laws affecting or limiting the enforcement of creditors' rights
generally and except as such enforceability is subject to general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

    3.3     No Conflicts.  Each Shareholder has the full legal right, power and
            ------------
authority to consummate the Mergers without the consent of any other person.

ARTICLE 4:  RADIO ONE REPRESENTATIONS AND WARRANTIES
            ----------------------------------------

    To induce the Majority Shareholder and the Company to enter into this
Agreement and to perform and consummate the transactions contemplated hereby,
Radio One represents and warrants to the Shareholders and the Company as
follows:

    4.1     Organization.  Radio One is duly organized, validly existing and in
            ------------
good standing under the laws of the jurisdiction of its organization (first set
forth above).  Radio One has the requisite power and authority to execute and
deliver this Agreement and all of the other agreements and instruments to be
executed and delivered by them (collectively, the "Radio One Ancillary
Agreements"), to consummate the transactions contemplated hereby and thereby and
to comply with the terms, conditions and provisions hereof and thereof.

    4.2    Authority.  The execution, delivery and performance of this Agreement
           ---------
and the Radio One Ancillary Agreements by Radio One have been duly authorized
and approved by all necessary action of Radio One and does not require any
further authorization or consent of Radio One.  This Agreement is, and each
Radio One Ancillary Agreement when executed and delivered by Radio One and the
other parties thereto will be, a legal, valid and binding agreement of Radio One
enforceable in accordance with its respective terms, except in each case as such
enforceability may be limited by bankruptcy, moratorium, insolvency,
reorganization or other similar laws affecting or limiting the enforcement of
creditors' rights generally and except as such enforceability is subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).  Upon issuance of the Stock
Consideration, the shares comprising the Stock Consideration will be duly
authorized, validly issued and fully paid and non-assessable.

    4.3    No Conflicts.  Neither the execution and delivery by Radio One of
           ------------
this Agreement and the Radio One Ancillary Agreements nor the consummation by
Radio One of any of the transactions contemplated hereby or thereby nor
compliance by Radio One with or fulfillment by Radio One of the terms,
conditions nd provisions hereof or thereof will: (i) conflict with the charter
or other organizational documents of Radio One or any judgment, order or decree
to which Radio One is subject; or (ii) require the approval, consent,
authorization or act of, or the making by Radio One of any declaration, filing
or registration with, any third party or any foreign, federal, state or local
court, governmental or regulatory authority or body, except for such of the
foregoing as are necessary pursuant to the HSR Act and the Communications Act.

    4.4     No Finder  No broker, finder or other person is entitled to a
            --------
commission, brokerage fee or other similar payment in connection with this
Agreement or the transactions contemplated hereby as a result of any agreement
or action of Radio One or any party acting on its behalf.

                                    -15-
<PAGE>

    4.5     Qualification  Radio One is qualified under the Communications Act
            -------------
and the rules, regulations and policies of the FCC to control the FCC
Authorizations.

    4.6     Representations  Neither Radio One nor any of its Affiliates has
            ---------------
taken, or agreed to take, any action that will prevent the Mergers from
qualifying as reorganization under Section 368(a) of the Code, and Radio One
will use commercially reasonable efforts to cause the Mergers to constitute a
reorganization under such section.

ARTICLE 5:  COVENANTS OF COMPANY AND THE SHAREHOLDERS
            -----------------------------------------

The Company and the Majority Shareholder covenant and agree that from the date
hereof until the completion of the Closing:

    5.1     Operation of the Business
            -------------------------
            (a) Subject to Section 1.15 the Davis Companies shall: (i) continue
to carry on their business and keep their books and accounts, records and files
in the usual and ordinary manner in which the business has been conducted in the
past; (ii) operate their business in all material respects in accordance with
the terms of the FCC Authorizations and in compliance in all material respects
with the Communications Act, FCC rules, regulations and policies, and all other
applicable laws, rules and regulations, and maintain the FCC Authorizations in
full force and effect and timely file and prosecute any necessary applications
for renewal of the FCC Authorizations; (iii) use best efforts to preserve their
business organization intact, retain substantially as at present their
employees, consultants and agents, preserve the goodwill of their suppliers,
advertisers, customers and others having business relations with it, and
broadcast all time due under barter time sales agreements to the extent possible
and permissible under such barter agreements; (iv) keep all Tangible Personal
Property and Real Property in good operating condition (ordinary wear and tear
excepted) and repair and maintain adequate and usual supplies of inventory,
office supplies, spare parts and other materials as have been customarily
maintained in the past; (v) preserve intact the Assets and maintain in effect
its current insurance policies with respect to the Davis Stations and the
Assets; and (vi) collect accounts receivable only in the ordinary course of
business consistent with past practice. Nothing contained in this Agreement
shall give Radio One any right to control the programming, operations or any
other matter relating to the Davis Stations prior to the Closing, and the Davis
Companies shall have complete control of the programming, operations and all
other matters relating to the Davis Stations up to the Closing.

            (b) Subject to Section 1.15 and notwithstanding Section 5.1(a), the
Davis Companies shall not, without the prior written consent of Radio One: (i)
sell, lease, transfer, or agree to sell, lease or transfer, any Assets except
for non-material sales or leases, in the ordinary course of business of items
which are being replaced by assets of comparable or superior kind, condition and
value; (ii) grant any raises to employees, pay any substantial bonuses or enter
into any contract of employment with any employee or employees other than in the
ordinary course of business consistent with existing employment practices; (iii)
adopt or increase any profit sharing, bonus, deferred compensation, savings,
insurance, pension, retirement, or other employee benefit plan for or with any
of its employees; (iv) amend or terminate any existing Time Sales Agreements
except in the ordinary course of business; (v)

                                    -16-
<PAGE>

amend or terminate any of the Station Contracts or enter into any contract,
lease or agreement except those entered into in the ordinary course of business
consistent with past practices and except for barter time sales agreements that
will be paid and performed in full before Closing; (vi) by any act or omission
cause any representation or warranty made herein to become untrue or inaccurate;
(vii) discount, or otherwise reduce the amount receivable in respect of, any
accounts receivable; (viii) increase its indebtedness for borrowed money, except
current borrowings in the ordinary course of business; (ix) cancel, compromise
or waive any claim or right of substantial value; (x) except as set forth in
Section 1.15, declare or make any dividend or other distribution of any kind or
for any purpose to any stockholder; (xi) redeem, purchase or otherwise acquire
any of its capital stock; (xii) make any change in accounting methods or
practices, except as required by law or generally accepted accounting
principles; (xiii) issue or sell any shares of capital stock or any other
securities, or issue any securities convertible into, or options, warrants or
rights to purchase or subscribe to, or enter into any arrangement or contract
with respect to the issue or sale of, any shares of its capital stock or any
other securities, or make any other changes in its capital structure; or (xiv)
amend or modify its certificate of incorporation or bylaws.

            (c) The Majority Shareholder and the Davis Companies shall not, and
shall not solicit, negotiate or enter into any agreement to, sell, transfer,
assign, encumber or pledge the Company Stock or any of the other Davis Company
Shares.

    5.2     Reports  The Majority Shareholder shall furnish to Radio One by the
            -------
end of each calendar month for the preceding calendar month: (a) unaudited
monthly Financial Statements for the Davis Companies and for the year to date
period, and (b) such other reports as Radio One may reasonably request relating
to the Davis Companies. The Financial Statements so delivered shall include the
comparable month and year to date period for the previous fiscal year. Each of
the Financial Statements delivered pursuant to this Section shall be prepared in
accordance with GAAP subject to the absence of notes and normal year-end
adjustments after audit (except as disclosed therein).

    5.3     Access  Between the date hereof and the Closing Date, Radio One and
            ------
the officers, employees, accountants, counsel, agents, consultants and
representatives of Radio One shall be given reasonable access to all Assets,
employees of the Davis Companies, accounts, statements, books, records, minutes,
deeds, title papers, insurance policies, licenses, agreements, contracts,
commitments, state and federal tax returns, records and files of every
character, equipment, machinery, fixtures, furniture, vehicles, notes and
accounts payable and receivable of the Davis Companies, and any other
information concerning the affairs of the Davis Companies as Radio One may
reasonably request provided that Radio One does not unreasonably interfere with
the business and operations of the Davis Companies. It is expressly understood
that, pursuant to this Section, Radio One, at its expense, shall be entitled to
conduct such inspections and reviews of the Davis Companies, the Davis Stations,
the Assets, and financial records relating to the Davis Companies and the Davis
Stations as Radio One may desire, so long as the same do not unreasonably
interfere with the operation of the Davis Stations. No inspection or
investigation made by or on behalf of Radio One, or Radio One's failure to make
any inspection or investigation, shall affect the Majority Shareholder's or the
Company's representations, warranties and covenants hereunder or be deemed to
constitute a waiver of any of those representations, warranties and covenants.
Immediately after the date hereof, the Majority Shareholder and the Company
shall also cooperate, and shall cause their respective accountants to cooperate,
with Radio One to conduct an audit by Radio One's accountants at Radio One's
expense of the Financial Statements for the Davis Stations for the years 1996,
1997, 1998 and 1999, and Radio One may disclose such financial

                                    -17-
<PAGE>

statements provided or created hereunder in reports filed by Radio One with any
governmental or regulatory authority, including the Securities and Exchange
Commission.

    5.4     Confidentiality  Until the Closing, Radio One agrees to, and to
            ---------------
cause its employees and agents to, protect the confidentiality of all
proprietary and confidential information received from the Davis Companies
pursuant to this Agreement or otherwise, using the same care and procedures used
to protect Radio One's own proprietary and confidential information, and agrees
not to disclose, and to cause its Affiliates, employees and agents not to
disclose, such proprietary and confidential information to any other persons
except as may be reasonably necessary in connection with the transactions
contemplated herein or except to the extent (i) such information is or becomes
publicly available or obtainable from independent, nonconfidential sources and
not in breach of Radio One's obligations hereunder or any other party's
confidentiality obligations owed to the Davis Companies and known by Radio One;
(ii) such information is required to be disclosed by law or by governmental
authorities having jurisdiction over Radio One; (iii) such information was known
by Radio One prior to any disclosure by the Davis Companies; (iv) disclosure is
necessary for Radio One to enforce any or all of its rights under this
Agreement; or (v) such disclosure is consistent with Radio One's usual and
customary disclosure practices with respect to its own information. In the event
this Agreement is terminated prior to the Closing Date, Radio One shall return
to the Davis Companies all written confidential information provided to Radio
One by the Davis Companies and all copies thereof.

    5.5     Consents The Majority Shareholder and the Company shall use their
            --------
reasonable best efforts to obtain all necessary consents to the assignment and
transfer of Station Contracts and all of the consents noted on Schedules 2.6,
                                                               -------------
2.12 and 2.13 hereto. Marked with an asterisk on Schedules 2.12 and 2.13 are
-------------                                    -----------------------
those consents the receipt of which is a condition precedent to Radio One's
obligation to close under this Agreement (the "Required Consents").

    5.6     Estoppel Certificates; Title Insurance; Liens  The Majority
            ---------------------------------------------
Shareholder and the Company, at the Shareholders' expense, will use their
reasonable best efforts to obtain and deliver to Radio One:  (i) written
estoppel certificates (the "Estoppel Certificates") duly executed by the lessors
under the Real Property Leases, in form and substance satisfactory to Radio One;
and (ii) all UCC, litigation, judgment and state and federal tax lien search
reports showing searches in such names and jurisdictions as shall be reasonably
necessary to assure that no Liens are filed or recorded against the Davis
Company Shares or the Assets (the "Lien Search Reports").  The Estoppel
Certificates shall be dated within fifteen days prior to Closing.  The Lien
Search Reports shall be delivered within thirty days after the date of this
Agreement and shall be updated within fifteen days prior to Closing.

    5.7     Environmental Subject to the receipt of any permits or approvals
            -------------
required by governmental authorities and, as to any leased Real Property, any
landlord, Radio One shall have the right at its expense to conduct one or more
reviews of the Real Property and take soil and water samples (including
groundwater samples) from the Real Property, and to test and analyze those
samples to determine the extent of any contamination of the soils and water
(including groundwater) on or about the Real Property. Any such reviews and
tests shall be undertaken and completed within forty-five days after the date
hereof. If, based on the results of those inspections and/or tests, Radio One
reasonably determines that the condition of the Owned Real Property is
unsatisfactory or if Radio One believes that its ownership of any parcel of
Owned Real Property would expose Radio One to undue risks of government

                                    -18-
<PAGE>

intervention or third-party liability, Radio One may notify the Majority
Shareholder and the Company that it desires to terminate this Agreement unless
such environmental hazard or violation is remediated prior to the Closing Date.
No information contained in any report of an environmental review shall relieve
Company of any obligation with respect to any representation, warranty or
covenant herein or waive any condition to Radio One's obligations hereunder. The
Majority Shareholder and Company shall use their reasonable best efforts to
remove any such hazardous material or correct any violations noted prior to the
Closing Date, provided, however, in the event that Radio One's environmental
              --------  -------
consultant's written estimate of the cost to remediate the hazardous materials
or violations exceeds $100,000, the Majority Shareholder and Company may elect
by written notice to Radio One to refuse to undertake or pay for such
remediation in excess of $100,000 and in such event Radio One may terminate this
Agreement upon written notice to the Majority Shareholder and the Company. In
the event that the cost is estimated to be less than $100,000, or if it is
greater and Radio One does not terminate this Agreement, the Majority
Shareholder and the Company shall remediate such environmental hazard or
violation, and if they are unable to accomplish same prior to the Closing Date,
an appropriate adjustment to the Merger Consideration shall be made as a part of
the adjustments and they shall indemnify and hold Radio One harmless from and
against any and all costs and expenses incurred by Radio One in order to
complete such remediation action following the Closing Date, up to a maximum
aggregate cost of $100,000, to the extent an adjustment is not made. Absent a
termination of this Agreement, Radio One shall be responsible for any costs in
excess of $100,000.

    5.8     Employment Matters  Radio One shall have the right, but not the
            ------------------
obligation, to retain all or any of the employees of the Davis Companies as
employees after the Closing.

    5.9     Exclusive Dealing  None of the Shareholders, the Davis Companies,
            -----------------
any of its respective affiliates or representatives or any officers or directors
of the Davis Companies shall take any action directly or indirectly, to
encourage, initiate, solicit or engage in discussions or negotiations with, or
provide any information to any person other than Radio One and its affiliates
and representatives concerning any purchase of any capital stock of the Davis
Companies or any merger, asset sale or similar transaction involving the Company
or any of the Assets.

    5.10    Shareholders' Approval.  The Majority Shareholder and the Board of
            ----------------------
Directors of the Company shall submit this Agreement and the Mergers to the
Stockholders for approval within thirty (30) days after the date of this
Agreement. The Majority Shareholder and the Company shall recommend that the
Shareholders vote to approve this Agreement and the Mergers. The Majority
Shareholder shall vote his shares of the Company Stock in favor of the Mergers
and for approval of this Agreement. Following approval by the Shareholders,
the Majority Shareholder shall request each of the Minority Shareholders to
execute an agreement or a power of attorney appointing the Majority Shareholder
as the custodian of the Minority Shareholders' Company Stock for all purposes of
this Agreement and the Mergers, with full right, power and authority to perform
any act arising under this Agreement which the Minority Shareholders themselves
could do including the right, power and authority to deliver the Minority
Shareholders' Company Stock upon Closing and the right to receive the issuance
and payment of the Merger Consideration on their behalf and in connection
therewith to direct Radio One as to the specific Merger Consideration to be
received by each Shareholder. Prior to or at such time that the Minority
Shareholders deliver the custodial agreement, they shall further execute such
document or documents as may be necessary or appropriate to waive any appraisal
rights they may have under Delaware law, and they shall deliver to the Majority
Shareholder the certificates representing their shares of Company Stock either
endorsed in

                                    -19-
<PAGE>

blank or with separate executed stock powers attached, and with signatures
guaranteed if requested by Radio One.

    5.11    Inter-Davis Companies Debt  Prior to the Closing Date, the Majority
            --------------------------
Shareholder and the Company shall cause the Davis Companies to take whatever
actions may be necessary or appropriate in order to cancel and eliminate all
inter-company debt and other obligations.

    5.12    Cancellation of Subordinated Lenders' Conversion, Purchase Option
            -----------------------------------------------------------------
and Put Rights Agreement  Between the date hereof and the Closing Date,
------------------------
Majority Shareholder and the Company shall use their best and all reasonable
efforts to obtain from DBC's subordinated lenders, Syndicated Communications
Venture Partners III, L.P., Medallion Capital, Inc. (successor in interest to
Capital Dimensions Venture Fund, Inc.), Alliance Enterprise Corporation and
Mesbic Ventures, Inc., (collectively the "Subordinated Lenders") waivers of
their rights to convert their subordinated indebtedness into common stock of DBC
and of their right and option to acquire the Charlotte Station pursuant to the
Conversion, Purchase Option and Put Rights Agreement dated October 22, 1997. As
of the date hereof, Majority Shareholder and Company have obtained all such
waivers, copies of which are contained in Schedule 5.12 hereto.
                                          -------------

    5.13    Qualification  The Majority Shareholder and the Company shall
            -------------
cause DBE to qualify to do business in South Carolina within thirty (30) days
after the date hereof.

    5.14    FCC Compliance  The Majority Shareholder and the Company shall
            --------------
cure any exceptions to FCC compliance described in Schedule 2.10 as promptly as,
                                                   -------------
and to the extent, possible and prior to the Closing Date.

    5.15    Bank Accounts  Within thirty (30) days after the date hereof the
            -------------
Majority Shareholder and the Company shall deliver to Radio One an accurate
and complete list showing the name and address of each bank in which the Davis
Companies have an account or safe deposit box, the number of any such account or
box and the names of all persons authorized to draw thereon or to have access
thereto.

ARTICLE 6:  ADDITIONAL COVENANTS
            --------------------

Radio One, the Company and the Majority Shareholder covenant and agree
that from the date hereof until the completion of the Closing:

    6.1     Representations and Warranties  Each party shall give the other
            ------------------------------
detailed written notice promptly upon learning of the occurrence of any event
that would cause or constitute a breach (or would have caused a breach had such
event occurred or been known to it prior to the date hereof) of any of its
representations and warranties contained in this Agreement.

    6.2     Notice of Proceedings  Each party shall promptly notify the other
            ---------------------
in writing upon: (a) becoming aware of any order or decree or any complaint
praying for an order or decree restraining or enjoining the consummation of this
Agreement or the transactions contemplated

                                    -20-
<PAGE>

hereunder; or (b) receiving any notice from any governmental department, court,
agency or commission of its intention (i) to institute an investigation into, or
institute a suit or proceeding to restrain or enjoin, the consummation of this
Agreement or such transactions, or (ii) to nullify or render ineffective this
Agreement or such transactions if consummated.

ARTICLE 7: SHAREHOLDERS CONDITIONS
            ----------------------
The obligations of the Shareholders under this Agreement are, at their option,
subject to the fulfillment of the following conditions prior to or on the
Closing Date:

    7.1     Representations, Warranties and Covenants  Each of the
            -----------------------------------------
representations and warranties of Radio One contained in this Agreement shall
have been true and correct as of the date when made and shall be true and
correct in all material respects on the Closing Date as if made on the Closing
Date, except to the extent changes are permitted pursuant to this Agreement.
Radio One shall have performed and complied with each and every covenant and
agreement required by this Agreement to be performed or complied with by them
prior to or on the Closing Date. Radio One shall have furnished the Majority
Shareholder with a certificate, dated the Closing Date and duly executed by an
officer of Radio One authorized on behalf of Radio One to give such a
certificate, to the effect that the conditions set forth in this Section have
been satisfied.

    7.2     Proceedings  None of the parties shall be subject to any restraining
            ----------
order or injunction restraining or prohibiting the consummation of the
transactions contemplated hereby.  In the event such a restraining order or
injunction is in effect, this Agreement may not be terminated by Company or the
Majority Shareholder pursuant to this Section prior to the Final Closing Date,
but the Closing shall be delayed during such period.  This Agreement may be
terminated after the Final Closing Date if such restraining order or injunction
remains in effect.

    7.3     FCC Consent  The FCC Consent shall have been granted by the FCC by
            -----------
initial order.

    7.4     Hart-Scott-Rodino  If applicable, the waiting period under the
            -----------------
HSR Act shall have expired or been terminated.

    7.5     Deliveries  Radio One shall have complied with its obligations
            ----------
set forth in Section 9.2.

    7.6    Columbus Sub  The distribution of the Columbus Stations and the
           ------------
Columbus Sub pursuant to Section 1.15 shall have been consummated prior to the
Closing Date.

ARTICLE 8: RADIO ONE CONDITIONS
           -------------------

                                    -21-
<PAGE>

The obligations of Radio One under this Agreement are, at its option, subject to
the fulfillment of the following conditions prior to or on the Closing Date:

    8.1    Representations, Warranties and Covenants   Each of the
           -----------------------------------------
representations and warranties of the Company and the Majority Shareholder
contained in this Agreement shall have been true and correct as of the date when
made and shall be true and correct in all material respects on the Closing Date
as if made on the Closing Date, except to the extent changes are permitted
pursuant to this Agreement. The Company and the Shareholders shall have
performed and complied with each and every covenant and agreement required by
this Agreement to be performed or complied with by each prior to or on the
Closing Date. The Majority Shareholder shall have furnished Radio One with a
certificate, dated the Closing Date and duly executed by the Company to the
effect that the conditions set forth in this Section have been satisfied.

    8.2     Proceedings  None of the parties shall be subject to any
            -----------
restraining order or injunction restraining or prohibiting the consummation of
the transactions contemplated hereby. In the event such a restraining order or
injunction is in effect, this Agreement may not be terminated by Radio One
pursuant to this Section prior to the Final Closing Date, but the Closing shall
be delayed during such period. This Agreement may be terminated after such date
if such restraining order or injunction remains in effect.

    8.3     FCC Consent  The FCC Consent shall have been granted by the FCC
            -----------
by Final order, without any conditions materially adverse to Radio One.

    8.4     Hart-Scott-Rodino  If applicable, the waiting period under the
            -----------------
HSR Act shall have expired or been terminated.

    8.5      Deliveries  The Company and the Shareholders shall have complied
             ----------
with their obligations set forth in Section 9.1.

    8.6     Required Consents  The Majority Shareholder and the Company shall
            -----------------
have obtained and delivered to Radio One all of the Required Consents.

    8.7     Material Adverse Change  None of the Davis Companies, the Davis
            -----------------------
Stations, nor any of the Assets shall have suffered a material adverse change
since the date hereof in the business, operations, condition (financial or
otherwise), properties, assets, liabilities, capitalization or ownership of the
Davis Companies, the Davis Stations or any of the Assets, except changes
permitted by this Agreement and changes which are not (either individually or in
the aggregate) materially adverse to the Davis Stations.

    8.8     Title Commitments  Radio One shall have obtained commitments from a
            -----------------
title insurance company acceptable to Radio One to issue to Radio One or its
designee at standard rates ALTA extended coverage owner's and leasehold title
insurance policies with respect to the owned and leased Real Property with no
exceptions other than Permitted Encumbrances (the "Title Commitments").

                                    -22-
<PAGE>

    8.9     Surveys  Radio One shall have obtained an ALTA survey of each
            -------
parcel of Owned Real Property (the "Surveys").

    8.10    Estoppel Certificates  The Majority Shareholder and the Company
            ---------------------
shall have obtained and delivered to Radio One the Estoppel Certificates.

    8.11    Environmental  The Shareholders and the Company shall have
            -------------
remediated any environmental hazards or violations required to be remediated or
cured by them pursuant to Section 5.6 or the estimated costs and expenses
thereof in an amount acceptable to Radio One shall have been set forth in the
Preliminary Adjustment Statement as a credit to Radio One to the extent required
by Section 5.7.

    8.12    Net Operating Losses  As of the Closing on the Closing Date, the
            --------------------
Davis Companies then current net operating losses for tax purposes shall not be
less than the amounts set forth on Schedule 2.8, minus the amounts of such net
                                   ------------
operating losses used to offset (i) earnings for the Davis Companies since June
30, 1999, and (ii) gain from the spin off of the Columbus Sub pursuant to
Section 1.15 and Schedule 1.15.
                 -------------

    8.13    Subordinated Lenders' Conversion  All of the Subordinated Lenders
            --------------------------------
shall have waived their conversion and purchase option rights with respect to
DBC as set forth in Section 5.12.

    8.14    Inter-Company Debt  All inter-company indebtedness by and among the
            ------------------
Davis Companies shall have been satisfied and eliminated without any adverse tax
consequences of any kind or nature upon Radio One or the Surviving Company.

    8.15    Shareholders' Approval  The Shareholders shall have approved this
            ----------------------
Agreement and the Mergers, and the Minority Shareholders shall have satisfied
the requirements of Section 5.10 to Radio One's reasonable satisfaction.

    8.16    Liens  Radio One shall have received evidence reasonably
            -----
satisfactory to it that, upon consummation of the Closing, the Assets shall be
free and clear of all liens other than Permitted Encumbrances.

                                    -23-
<PAGE>

ARTICLE 9: ITEMS TO BE DELIVERED AT THE CLOSING
           ------------------------------------

    9.1     Deliveries by the Company and the Shareholders  At Closing, the
            ----------------------------------------------
Company and the Shareholders, as appropriate, shall deliver to Radio One duly
executed by Company, the Shareholders or such other signatory as may be required
by the nature of the document:

    (a) the certificates representing (i) the Company Stock accompanied by stock
powers duly endorsed in blank, sufficient to cancel all right, title and
interest in and to the Company Stock and (ii) the other Davis Company Shares;

    (b) certified copies of resolutions duly adopted by the Shareholders and the
board of directors of the Company, which shall be in full force and effect at
the time of the Closing, authorizing the execution, delivery and performance of
this Agreement and the consummation of the transactions contemplated hereby;

    (c) the certificate referred to in Section 8.1;

    (d) the corporate minute book, stock ledger and all other original and
duplicate corporate records of the Davis Companies;

    (e) copies of the certificate of incorporation of the Davis Companies,
including all amendments thereto, certified by the Secretary of State or other
appropriate official of the jurisdiction of incorporation of the Davis Companies
dated within 10 business days of the Closing Date;

    (f) copies of the bylaws of the Davis Companies, certified by an officer of
the Company as being true and correct and in effect on the Closing Date;

    (g) certificates from the Secretaries of State or other appropriate
officials of the jurisdiction of incorporation of the Davis Companies and any
jurisdiction in which the Davis Companies have qualified to do business, dated
within 10 business days of the Closing Date and showing that the Davis Companies
are duly incorporated and in good standing in its jurisdiction of incorporation
and that it is in good standing in each jurisdiction in which it has qualified
to do business;

    (h) a certificate as to the tax status of the Davis Companies from the
appropriate official of the jurisdiction of incorporation of the Davis Companies
and each jurisdiction in which the Davis Companies have qualified to do
business;

    (i) resignations and releases of all officers and directors of the Davis
Companies and releases of the Shareholders of the Davis Companies;

                                    -24-
<PAGE>

    (j) the Required Consents and any other consents obtained by Shareholders
and Company under Section 5.4;

    (k) opinions of Company's counsel in the forms of Exhibit B attached hereto;
                                                      ---------

    (l) the Preliminary Adjustment Statement and the Preliminary Adjustment
Certificate;

    (m) the Estoppel Certificates obtained by Majority Shareholder and Company
and Lien Search Reports;

    (n) the Subscriptions and the Registration Rights Agreements; and

    (o) the Post-Closing Escrow Agreement.

    9.2     Deliveries by Radio One  At the Closing, Radio One shall deliver
            -----------------------
to the Shareholders:

    (a) certified copies of resolutions authorizing the execution, delivery and
performance by Radio One of this Agreement, which shall be in full force and
effect at the time of the Closing;

    (b) the certificate referred to in Section 7.1;

    (c) at the Effective Time, the Merger Consideration as provided by Sections
1.7 and 1.8;

    (d) the Post-Closing Escrow Agreement; and

    (e) the Registration Rights Agreements.

    9.3   Satisfaction of Davis Companies Indebtedness for Long Term Debt
          ---------------------------------------------------------------
Simultaneously with Closing onUhe Closing Date, the Davis Companies long term
indebtedness payable to Amresco, the Subordinated Lenders, First Union National
Bank, and all other Davis Companies' financial institutions and banks, and
Transactions Fees and Costs, shall be paid and satisfied in full out of the
Total Consideration with such amounts so paid to be treated as Indebtedness and
a part of the Consolidated Liabilities.  In connection with such satisfactions,
the Davis Companies' lenders shall release and discharge any and all security
interests, stock pledges, mortgage, liens, claims and encumbrances whatsoever
that they may have or possess against and in respect of the Davis Companies'
Assets, including, without limitation, the execution, delivery and filing of
mortgage satisfactions and UCC termination

                                    -25-
<PAGE>

statements in all required jurisdictions.

ARTICLE 10: SURVIVAL; RELEASE; INDEMNIFICATION
            ----------------------------------

    10.1    Survival; Release  All representations and warranties contained in
            -----------------
this Agreement, or in any certificate, agreement, or other document or
instrument, delivered pursuant hereto, shall survive (and not be affected in any
respect by) the Closing, any investigation conducted by any party hereto and any
information which any party may receive, for a period of one (1) year after the
Closing Date, provided, however, that representations and warranties with
              --------  -------
respect to authorization, title, taxes and environmental matters shall survive
without limitation.

    10.2    Indemnification
            ---------------

     (a) From and after Closing, subject to the limitation set forth in Section
5.7, if applicable, the Majority Shareholder (an "Indemnifying Party") hereby
agrees to indemnify and hold harmless Radio One and Radio One of Charlotte, the
shareholders, directors, officers and employees of Radio One and Radio One of
Charlotte, LLC, and all persons which directly or indirectly, through one or
more intermediaries, control, are controlled by, or are under common control
with Radio One, and their respective successors and assigns (collectively, the
"Radio One Indemnitees") from, against and in respect of, and to reimburse the
Radio One Indemnitees for, the amount of any and all Deficiencies (as defined in
Section 10.3(a)). Effective upon Closing, the Majority Shareholder hereby
assumes and agrees to pay and perform when due any and all such Deficiencies.
Notwithstanding anything to the contrary set forth in this Agreement, the
Majority Shareholder shall have no obligation to indemnify any Radio One
Indemnitees on account of (i) any Taxes required to be paid by, or on behalf of,
any Davis Company as a result of the Mergers not being treated as
reorganizations under Section 368(a) of the Code, or (ii) any breach of Section
2.8 resulting from the Mergers not being treated as reorganizations under
Sections 368(a) of the Code.

     (b) From and after Closing, Radio One (an "Indemnifying Party") hereby
agrees to indemnify and hold harmless the Majority Shareholder and its
respective successors and assigns (collectively, the "Majority Shareholder
Indemnitees") from, against and in respect of, and to reimburse the Majority
Shareholder Indemnitees for, the amount of any and all Deficiencies (as defined
in Section 10.3(b)). Radio One shall have no obligation whatsoever to indemnify
any of the Minority Shareholders for any Deficiencies.

     10.3   Deficiencies
            ----------

    (a) As used in this Article 10, the term "Deficiencies" when asserted by
Radio One Indemnitees or arising out of a third party claim against Radio One
Indemnitees shall mean any and all losses, damages, liabilities and claims
sustained by the Radio One Indemnitees and arising out of, based upon or
resulting from: (i) any misrepresentation, breach of warranty, or any failure to
comply with any covenant, obligation or agreement on the part of the Majority
Shareholder or the Company contained in or made pursuant to this Agreement to
the extent not

                                    -26-
<PAGE>

covered by proceeds of insurance; (ii) any obligation or liability arising from
the business or operations of the Davis Companies prior to Closing of a nature
or type required to be reflected on the Closing Date consolidated balance sheet
of the Davis Companies in accordance with GAAP to the extent not covered by
proceeds of insurance, except for Assumed Obligations and except for
Consolidated Liabilities that are taken into account in calculating the Merger
Consideration; (iii) without limiting the foregoing, any litigation, proceeding
or claim by any third party relating to the business or operation of the Davis
Companies prior to Closing to the extent not covered by proceeds of insurance;
or (iv) any obligation or liability arising from the business or operations of,
and any litigation proceeding or claim by any third party relating to the
business or operations of, the Columbus Stations and the Columbus Sub, whether
prior to or after Closing. Such Deficiencies include without limitation any and
all acts, suits, proceedings, demands, assessments and judgments, and all fees,
costs and expenses of any kind, related or incident to any of the foregoing
(including, without limitation, any and all Legal Expenses (as defined in
Section 10.6 below)).

    (b) As used in this Article 10, the term "Deficiencies" when asserted by the
Majority Shareholder Indemnitees or arising out of a third party claim against
the Majority Shareholder Indemnitees shall mean any and all losses, damages,
liabilities and claims sustained by the Majority Shareholder Indemnitees and
arising out of, based upon or resulting from: (i) any misrepresentation, breach
of warranty, or any failure to comply with any covenant, obligation or agreement
on the part of Radio One contained in or made pursuant to this Agreement to the
extent not covered by proceeds of insurance; (ii) any failure by the Radio One
Indemnitees to pay or perform any of the Assumed Obligations and Consolidated
Liabilities that are taken into account in calculating the Merger Consideration
to the extent not covered by proceeds of insurance; or (iii) any litigation,
proceeding or claim by any third party relating to the business or operation of
the Davis Companies after Closing to the extent not covered by proceeds of
insurance. Such Deficiencies include without limitation any and all acts, suits,
proceedings, demands, assessments and judgments, and all fees, costs and
expenses of any kind, related or incident to any of the foregoing (including,
without limitation, any and all Legal Expenses (as defined in Section 10.6
below)).

    10.4    Exceptions  Neither party shall be required to indemnify and hold
            ----------
harmless the other party or parties with respect to deficiencies described in
Sections 10.3(a)(i) and 10.3(b)(i) until the aggregate amount of such
deficiencies exceed $100,000, provided, however, that if such amount exceeds
$100,000 the indemnifying party shall be liable to the indemnified party or
parties for the entirety of the amount claimed and not just that portion in
excess of $100,000. The aggregate amount that Majority Shareholder and the
Company shall be required to indemnify and hold harmless Radio One Indemnitees
for Deficiencies with respect to Section 10.3(a)(i) above shall not exceed the
amount of the Merger Consideration.

    10.5   Procedures
           ----------

    (a) Third Party Claims In the event that any claim shall be asserted by any
        ------------------
third party against the Radio One Indemnitees or the Majority Shareholder
Indemnitees (Radio One Indemnitees or the Majority Shareholder Indemnitees, as
the case may be, hereinafter, the "Indemnitees"), which, if sustained, would
result in a Deficiency, then the Indemnitees, as promptly as practicable but in
no event later than 10 business days, after learning of such

                                    -27-
<PAGE>

claim, shall notify the Indemnifying Party of such claim, and shall extend to
the Indemnifying Party a reasonable opportunity to defend against such claim,
at the Indemnifying Party's sole expense and through legal counsel reasonably
acceptable to the Indemnitees, provided that the Indemnifying Party proceeds
in good faith, expeditiously and diligently. The Indemnitees shall, at their
option and expense, have the right to participate in any defense undertaken by
the Indemnifying Party with legal counsel of their own selection. No
settlement or compromise of any claim which may result in a Deficiency may be
made by the Indemnifying Party without the prior written consent of the
Indemnitees unless: (A) prior to such settlement or compromise the
Indemnifying Party acknowledges in writing its obligation to pay in full the
amount of the settlement or compromise and all associated expenses; (B) the
Indemnitees are furnished with a full release from the party or parties
asserting the claim; and (C) the Indemnifying Party has the ability (financial
or otherwise) to pay or perform such settlement or compromise.

    (b) Direct Claims In the event that the Indemnitees assert the existence of
        -------------
any Deficiency (other than a Deficiency arising out of any litigation,
proceeding claim, by any third party) against the Indemnifying Party, they shall
give written notice to the Indemnifying Party of the nature and amount of the
Deficiency asserted. If the Indemnifying Party, within a period of thirty (30)
days after the giving of notice by the Indemnitees, shall not give written
notice to the Indemnitees announcing its intent to contest such assertion of the
Indemnitees (such notice by the Indemnifying Party being hereinafter referred to
as the "Contest Notice"), such assertion of the Indemnitees shall be deemed
accepted and the amount of the Deficiency shall be deemed established. In the
event, however, that a Contest Notice is given to the Indemnitees within said
30-day period, then the contested assertion of a Deficiency shall be settled
by arbitration to be held in Washington, D.C. in accordance with the
Commercial Rules of the American Arbitration Association then existing. The
determination of the arbitrator shall be delivered in writing to the
Indemnifying Party and the Indemnitees and shall be final, binding and
conclusive upon all of the parties hereto, and the amount of the Deficiency,
if any, determined to exist, shall be deemed established.

    (c) The Indemnitees and the Indemnifying Party may agree in writing, at any
time, as to the existence and amount of a Deficiency, and, upon the execution of
such agreement such Deficiency shall be deemed established.

    10.6    Payment The Indemnifying Party hereby agrees to pay the amount of
            -------
established Deficiencies within 15 days after the establishment thereof. The
amount of established Deficiencies shall be paid in cash except as provided in
the Post-Closing Escrow Agreement, which shall be used for such purpose on a
priority basis. At the option of the Indemnitees, the Indemnitees may offset any
Deficiency or any portion thereof that has not been paid by the Indemnifying
Party to the Indemnitees against any obligation the Indemnitees, or any of them,
may have to the Indemnifying Party.

    10.7    Legal Expenses  As used in this Article 10, the term "Legal
            --------------
Expenses" shall mean any and all reasonable fees (whether of attorneys,
accountants or other professionals), costs and expenses of any kind reasonably
incurred by any person identified herein and its counsel in investigating,
preparing for, defending against, or providing evidence, producing documents or
taking other action with respect to any threatened or asserted claim.

                                    -28-
<PAGE>

    10.8   Sole Remedy  Except as set forth Sections 11.1 and 11.2 below, from
           -----------
and after the Closing Date, the rights pursuant to this Article 10 and Sections
1.8 and 1.10 above shall be the parties' exclusive remedies with respect to all
breaches of representations, warranties and covenants under this Agreement
(specifically excluding breaches of representations, warranties and covenants
set forth in the Employment Agreement), and the parties' waive all other rights
and remedies whatsoever in law or equity with respect to the foregoing, except
for rights and remedies that the Majority Shareholder may have as a shareholder
of Radio One arising out of securities laws.

ARTICLE 11:  MISCELLANEOUS
             -------------

    11.1    Termination This Agreement may be terminated at any time prior to
            -----------
Closing: (a) by the mutual consent of the Majority Shareholder and Radio One;
(b) by the Majority Shareholder or Radio One if the FCC has denied the approvals
contemplated by this Agreement in an order which has become Final; (c) by Radio
One as provided in Section 5.6 (Environmental), Section 11.5 (Broadcast
Transmission Interruption) or Section 11.6 (Risk of Loss); (d) except as set
forth in Section 11.6, by Radio One or the Majority Shareholder if the Closing
has not taken place by the Final Closing Date; (e) by Radio One, if on the
Closing Date the Company or the Majority Shareholder has failed to satisfy any
of the conditions set forth in Section 8.1, 8.5, 8.6, 8.7, 8.10, 8.11, 8.12,
8.13, 8.14, 8.15 or 8.16; (f) by Radio One if the Company or the Majority
Shareholder has failed to cure a material breach of any of their
representations, warranties or covenants under this Agreement within fifteen
(15) calendar days after they receive notice from Radio One of such breach; (g)
by the Majority Shareholder, if on the Closing Date Radio One has failed to
satisfy either of the conditions set forth in Section 7.1 or 7.5; or (h) by the
Majority Shareholder if Radio One has failed to cure a material breach of any of
its representations, warranties or covenants under this Agreement within fifteen
(15) calendar days after they receive notice from the Majority Shareholder of
such breach. A termination pursuant to this Section 11.1 shall not relieve any
party of any liability it would otherwise have for a breach of this Agreement.

    11.2    Specific Performance In the event of a breach by the Majority
            --------------------
Shareholder or the Company of any representation, warranty, covenant or
agreement under this Agreement, at Radio One's election, in addition to any
other remedy available to it, Radio One shall be entitled to an injunction
restraining any such breach or threatened breach and, subject to obtaining any
requisite approval of the FCC, to enforcement of this Agreement by a decree of
specific performance requiring the Company and the Majority Shareholder to
fulfill their obligations under this Agreement, in each case without the
necessity of showing economic loss or other actual damage and without any bond
or other security being required.  The remedies provided Radio One in this
Agreement shall be cumulative and shall not preclude the assertion by Radio One
of any other rights or the seeking of any other remedies against the Company or
the Majority Shareholder.

                                    -29-
<PAGE>

    11.3    Expenses  Each party hereto shall bear all of its expenses
            --------
incurred in connection with the transactions contemplated by this Agreement,
including without limitation, accounting and legal fees incurred in connection
herewith; provided that: (i) the Majority Shareholder and Radio One shall each
pay one-half of the filing fees required to be paid in connection with the FCC
Applications and the Merger Reorganizations; (ii) the Majority Shareholder shall
be exclusively responsible for, and Radio One shall not have any liability or
responsibility for, any sales or transfer taxes (including without limitation
any real estate transfer taxes), arising from the consummation of the Mergers;
and (iii) Radio One shall pay the HSR Act filing fee, if any.

    11.4    Further Assurances  From time to time prior to and after Closing,
            ------------------
each party hereto will use their respective reasonable best efforts to take all
actions required hereunder to consummate this Agreement and the Mergers and will
execute all such instruments and take all such actions as any other party shall
reasonably request, without payment of further consideration, in connection with
carrying out and effectuating the intent and purpose hereof and all transactions
contemplated by this Agreement, including without limitation the execution and
delivery of any and all confirmatory and other instruments in addition to those
to be delivered at Closing, and any and all actions which may reasonably be
necessary to complete the transactions contemplated hereby, including the Merger
Reorganizations. The parties shall cooperate fully with each other and with
their respective counsel and accountants in connection with any steps required
to be taken as part of their respective obligations under this Agreement.

    11.5    Broadcast Transmission Interruption  If before Closing the regular
            -----------------------------------
broadcast transmission of the Davis Stations in the normal and usual manner is
interrupted for a period of eight consecutive hours or more, the Company shall
give prompt written notice thereof to Radio One. Radio One shall then have the
right, by giving written notice, to postpone (and if necessary re-postpone) the
Closing to a date that is fifteen (15) days after the end of any such
interruption. If regular broadcast transmission in the normal and usual manner
is interrupted for a continuous period of eighteen (18) hours or more at any
time prior to Closing, then (a) the Company immediately shall give written
notice thereof to Radio One and (b) Radio One shall have the right, by giving
written notice, to (i) terminate this Agreement, or (ii) postpone the Closing as
provided above.

    11.6    Risk of Loss  The risk of loss, damage or destruction to any of the
            ------------
Assets shall be borne by the Company and the Shareholders at all times up to
12:01 a.m. local time on the Closing Date. In the event of any such loss,
damage, or destruction, the proceeds of any claim for any loss, payable under
any insurance policy with respect thereto, shall be used to repair, replace, or
restore any such property to its former condition, subject to the conditions
stated below. In the event of any loss or damage to any of the Assets, the
Company and the Majority Shareholder shall notify Radio One thereof in writing
immediately. Such notice shall specify with particularity the loss or damage
incurred, the cause thereof (if known or reasonably ascertainable), and the
insurance coverage. If any part of the Assets are damaged or destroyed by
casualty loss prior to the Closing Date, and the cost of restoring the damaged
or destroyed

                                    -30-
<PAGE>

Assets to a condition reasonably comparable to their prior condition does not
exceed $500,000, at Radio One's option, (a) the Company shall perform such
restoration, and in such event, the Closing shall be postponed until restoration
can be completed or (b) the amount of the Merger Consideration shall be reduced
by the estimated cost of such incomplete restoration (as estimated by a
qualified firm reasonably acceptable to Radio One and the Company) minus the
amount of expected insurance proceeds attributable to such casualty loss (not
including any such proceeds received before the Closing Date). If the cost of
restoration is in excess of $500,000, the Majority Shareholder and Company may
elect to perform such restoration and in such event, at Radio One's option (x)
the Closing shall be postponed until restoration can be completed, (y) the
Merger Consideration shall be reduced by such estimated cost of restoration
minus the amount of expected insurance proceeds attributable to such casualty
-----
loss (not including any such proceeds received before the Closing Date), or (z)
this Agreement shall be terminated. If the cost of the restoration is in excess
of $500,000 and the Majority Shareholder and Company elect not to perform the
restoration, Radio One may elect to terminate this Agreement. If necessary, the
Company and the Majority Shareholder shall join Radio One in requesting from the
FCC any extensions of time in which to consummate the Closing that may be
required in order to complete such repairs.

    11.7    Cooperation  From the date of Closing and for a period of three (3)
            -----------
years thereafter, the Majority Shareholder shall provide Radio One with such
cooperation and information as Radio One shall reasonably request in Radio
One's: (i) analysis and review of Financial Statements or information provided
or created hereunder, or (ii) preparation of any reports or analyses prepared by
Radio One. The Majority Shareholder shall also make the accountants employed by
the Company prior to Closing available, including any work papers, opinions and
financial statements relating to the Company or the Shareholders, to provide
explanations of any documents or information provided hereunder and to permit
disclosure of such information by Radio One, including disclosure to any
governmental authority, including the Securities and Exchange Commission.

    11.8    Tax Matters  Prior to Closing, the Majority Shareholder shall cause
            -----------
the Company to prepare and timely file, or cause to be prepared and timely
filed, all tax returns of the Davis Companies that are due prior to Closing,
which shall be prepared by treating items on such tax returns in a manner
consistent with the past practices with respect to such items, unless otherwise
required by law. The Majority Shareholder shall cause the Company to provide to
Radio One drafts of all tax returns (and accompanying work papers) of the Davis
Companies at least thirty (30) days prior to filing. Not less than fifteen (15)
days prior to filing, Radio One shall notify the Majority Shareholder of the
existence of any objection (specifying in reasonable detail the nature and basis
for such objection) Radio One may have to any items set forth on such draft tax
returns. Radio One and the Majority Shareholder agree to consult and resolve in
good faith any such objection. After Closing, Radio One shall prepare and timely
file, or cause to be prepared and timely filed, all tax returns of the Davis
Companies; provided, however, that in the case of any return that includes any
           --------  -------
period prior to Closing, Radio One shall provide to the Majority Shareholder
drafts of such tax returns (and accompanying work papers) at least thirty (30)
days prior to filing.  No less than fifteen (15) days prior to filing, the
Majority Shareholder shall notify Radio One of the existence of any objection
(specify in reasonable detail the nature and basis for such objection) the
Majority Shareholder may have to any items set forth on such draft tax return to
the extent that such return would adversely impact the Majority Shareholder
indemnification obligations hereunder.  Radio One and the Majority Shareholder
agree to consult and resolve in good faith any such objection and any such
objection that is not resolved shall be determined by an independent

                                    -31-
<PAGE>

certified public accountant who is acceptable to both Radio One and the Majority
Shareholder. The parties shall treat the spin-off of Davis Broadcasting of
Columbus, Inc. as a Code Section 355 transaction, and for purposes of
determining taxable gain under Code Section 355(e), shall value the stock of
such corporation at $2,500,000. The Majority Shareholder shall not file or cause
to be filed any amended tax return without the prior written consent of Radio
One, which consent shall not be unreasonably withheld. The Majority Shareholder
and Radio One shall cooperate with one another in connection with the
preparation, filing and any inquiries relating to any tax returns. Any refund of
taxes relating to the Davis Companies received by the Shareholders after Closing
shall be paid by the Shareholders to Radio One within ten business days after
such refund is received by the Shareholders.

ARTICLE 12:  GENERAL PROVISIONS
             ------------------

    12.1    Successors and Assigns This Agreement shall be binding upon and
            ----------------------
inure to the benefit of the parties hereto, and their respective
representatives, successors and assigns. Neither the Company nor the
Shareholders may assign any rights or delegate any duties hereunder without the
prior written consent of Radio One, and any such attempted assignment or
delegation without such consent shall be void. Radio One may assign its rights
and obligations hereunder in whole or in part without consent of the Company or
the Majority Shareholder to: (a) any person which directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under
common control with Radio One; and (b) Radio One's senior lender as collateral.

    12.2    Amendments; Waivers  The terms, covenants, representations,
            -------------------
warranties and conditions of this Agreement may be changed, amended, modified,
waived, or terminated only by a written instrument executed by the party waiving
compliance. The failure of any party at any time or times to require performance
of any provision of this Agreement shall in no manner affect the right of such
party at a later date to enforce the same. No waiver by any party of any
condition or the breach of any provision, term, covenant, representation or
warranty contained in this Agreement, whether by conduct or otherwise, in any
one or more instances shall be deemed to be or construed as a further or
continuing waiver of any such condition or of the breach of any other provision,
term, covenant, representation or warranty of this Agreement.

    12.3    Notices   All notices, requests, demands and other communications
            -------
required or permitted under this Agreement shall be in writing (which shall
include notice by telex or facsimile transmission) and shall be deemed to have
been duly made and received when personally served, or when delivered by Federal
Express or a similar overnight courier service, expenses prepaid, or, if sent by
telex, graphic scanning or other facsimile communications equipment, delivered
by such equipment, addressed as follows:

if to the Company or the Majority Shareholder:  c/o Davis Broadcasting, Inc.
                                                2203 Wynnton Road

                                    -32-
<PAGE>

                                               Columbus, GA  31906
                                               Attn:  Gregory A. Davis
                                               Facsimile No.:  (704) 358-1612

with a copy (which shall not constitute notice) to:

                                         Robinson, Bradshaw & Hinson, P.A.
                                         101 North Tryon Street
                                         Suite 1900
                                         Charlotte, N.C. 28246
                                         Attn:  Robin L. Hinson
                                         Facsimile No.: (704) 378-4000

and
                                         Fleishman and Walsh, L.L.P.
                                         1400 Sixteenth Street, N.W.
                                         Washington, D.C.  20036
                                         Attn:   Howard A. Topel
                                         Facsimile No.:  (202) 745-0916

                                    -33-
<PAGE>

if to Radio One:                         Radio One, Inc.
                                         5900 Princess Garden Parkway, Suite 800
                                         Lanham, MD  20706
                                         Attn:  Alfred C. Liggins, President
                                         Facsimile No.:  (301) 306-9638

with a copy (which shall not constitute notice) to:

                                         Radio One, Inc.
                                         5900 Princess Garden Parkway, Suite 800
                                         Lanham, MD  20706
                                         Attn:  Linda J. Eckard, General Counsel
                                         Facsimile No.:  (301) 306-9638

and                                      Wiley, Rein & Fielding
                                         1776 K Street, N.W.
                                         Washington, D.C.  20006
                                         Attn:  Dominic T. Bodensteiner
                                         Facsimile No.:  (202) 719-7049

Any party may alter the address to which communications are to be sent by giving
notice of such change of address in conformity with the provisions of this
Section providing for the giving of notice.

    12.4    Captions The captions of Articles and Sections of this Agreement
            --------
are for convenience only and shall not control or affect the meaning or
construction of any of the provisions of this Agreement.

    12.5    Governing Law  This Agreement and all questions relating to
            ------------
its validity,

                                    -34-
<PAGE>

interpretation, performance and enforcement shall be governed by and construed
in accordance with the laws of the State of Delaware, without giving effect to
principles of conflicts of laws.

     12.6   Entire Agreement  This Agreement constitutes the full and entire
            ----------------
understanding and agreement between the parties with regard to the subject
matter hereof, and supersedes all prior agreements, understandings, inducements
or conditions, express or implied, oral or written, relating to the subject
matter hereof. The express terms hereof control and supersede any course of
performance and/or usage of trade inconsistent with any of the terms hereof.
This Agreement has been prepared by all of the parties hereto, and no inference
of ambiguity against the drafter of a document therefore applies against any
party hereto.

    12.7    Counterparts   This Agreement may be executed in any number of
            ------------
counterparts, each of which shall be deemed to be an original as against any
party whose signature appears thereon, and all of which shall together
constitute one and the same instrument.

                           [SIGNATURE PAGE FOLLOWS]

                                    -35-
<PAGE>

                      SIGNATURE PAGE TO MERGER AGREEMENT

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

                                          RADIO ONE:

                                          RADIO ONE, INC.

                                          By:
                                              -------------------------------
                                          Name:
                                               ------------------------------
                                          Title:
                                                -----------------------------

                                          COMPANY: DAVIS BROADCASTING, INC.

                                          By:
                                             --------------------------------
                                             Gregory A. Davis, President

                                          MAJORITY SHAREHOLDER:

                                          -----------------------------------
                                          Gregory A. Davis

                                    -36-
<PAGE>

                                    ANNEX A

                             Certain Defined Terms

For the purposes of this Agreement, the following terms have the meanings set
forth below.

"Adjusted Consideration" means the Total Consideration less the Consolidated
Liabilities and (i) plus one half of the amount by which Consolidated Current
Assets exceed the Consolidated Accounts Payable, or (ii) less the amount by
which Consolidated Accounts Payable exceed Consolidated Current Assets, as the
case may be.

"Affiliate" of any particular person means any other person controlling,
controlled by, or under common control with, such particular person, where
"control" means the possession, directly or indirectly, of the power to direct
the management and policies of a person whether through the ownership of voting
securities, contract or otherwise.

"Assets" means all right, title and interest of the Davis Companies in all
properties, assets, privileges, rights, interests and claims, real and personal,
tangible and intangible, of every type and description, wherever located,
including its business and goodwill, including, without limitation, the FCC
Authorizations, Tangible Personal Property, Real Property, the DBC Stock, Time
Sales Agreements, Station Contracts, Intangible Property, Programming and
Copyrights, Files and Records and Websites.

"Assumed Obligations" means the obligations arising on and after the Closing for
Consolidated Accounts Payable and under the Station Contracts other than those
required by this Agreement to be terminated at or prior to Closing.

"Barter Balance" on a given date means the difference between the value of air
time (based upon the Davis Stations' then prevailing rates) to be provided and
the fair market value of goods or services to be received therefor pursuant to
trade, barter or similar agreements for the sale of time for goods or services.

 "Cash Amount" means the amount of Two Million Dollars ($2,000,000).

                                      A1
<PAGE>

"Closing Price" means $61.89 per share of Radio One's common stock.

"Company Accountant" means Sievers & Knopf.

"Consolidated Accounts Payable" means the trade account payable of the Davis
Companies incurred in the usual and ordinary course of business consistent with
past practices with maturities of less than thirty (30) days.

"Consolidated Accounts Receivable" means the trade accounts receivable of the
Davis Companies net after the deduction of reserve for bad debts equal to two
percent (2%) of net sales for the prior 12 month period.

"Consolidated Current Assets" means the sum of the cash and Consolidated
Accounts Receivable of the Davis Companies.

"Consolidated Liabilities" means all Indebtedness of the Davis Companies other
than the Assumed Obligations, including without limitation all indebtedness of
the Davis Companies owing to Radio One, all other indebtedness for borrowed
money, all change of control payments the Davis Companies are obligated to
make as a result of the transaction contemplated by this Agreement, the amount
of any negative Barter Balance and Transaction Fees and Costs.

    "Davis Companies" means the Company and the Station Subs collectively.

    "ERISA" means the Employee Retirement Income Security act of 1974, as
amended.

     "Escrow Amount" means $850,000, being an amount equal to (i) five percent
(5%) of the Total Consideration less (ii) the $350,000 principal amount of
indebtedness for borrowed money owed by the Company to Radio One.

    "Escrowed Shares" means the number of shares of Radio One common stock equal
to $1,200,000 based on the Closing Price, which shares issued in the name of the
Majority Shareholder shall be deposited by Radio One into the post-closing
Escrow Account pursuant to Section 1.8 from the Stock Consideration.

    "FCC Authorizations" means all of the FCC authorizations issued with respect
to the Davis Stations, including without limitation all rights in and to the
Davis Stations' call letters and any variations thereof, and all of those FCC
authorizations listed and described on Schedule 2.10 attached hereto, and all
                                       -------------
applications therefor, together with any renewals or extensions thereof and
additions thereto.

    "Files and Records" means all FCC logs and all files and other records of
the Davis Companies (other than duplicate copies of such files ("Duplicate
Records")), including

                                      A2
<PAGE>

without limitation all schematics, blueprints, engineering data, customer lists,
reports, specifications, projections, statistics, promotional graphics, original
art work, mats, plates, negatives and other advertising, marketing or related
materials, and all other technical and financial information.

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

    "GAAP" means generally accepted accounting principles as of the date hereof
consistently applied throughout the specified period and in prior periods.

    "Indebtedness" means all indebtedness, liabilities and obligations of every
kind and nature, both current and long term, which are vested, absolute, and
accrued, including but not limited to, all indebtedness for borrowed money (and
interest thereon and prepayment penalties incurred as a result of prepaying such
indebtedness, if any, pursuant to Section 9.3) of the Davis Companies, all
determined in accordance with GAAP on a consolidated basis.

    "Independent Accounting Firm" means a "big-five" accounting firm other than
the Company Accountant and Radio One's Accountant.

    "Intangible Property" means all interests of the Davis Companies as of the
date of this Agreement in all trademarks, trade names, service marks,
franchises, patents, jingles, slogans, logotypes and other intangible rights,
including without limitation all right, title and interest in and to the marks
consisting of the Davis Stations' call letters and any variations thereof, and
all of those listed and described on Schedule 2.14 attached hereto, and those
                                     -------------
acquired by the Davis Companies between the date hereof and the Closing Date.

    "Knowledge", including the phrases "to the knowledge of" or "to the best
knowledge of" any person and any similar phrase means, with respect to the
Company the actual knowledge of Greg Davis, Bill Yeager and Bernie Corcoran.

    "Liens" means any mortgages, liens, deeds of trust, security interests,
pledges, restrictions, prior assignments, charges, claims, defects in title and
encumbrances of any kind or type whatsoever.

    "Minority Cash Amount" means the portion of the Cash Amount equal to the
excess of (i) the Adjusted Consideration multiplied by the Minority Percentage
                                         -------------
over (ii) $500,000.

    "Minority Percentage" means the percentage of Company Stock (both Class A
Common Stock and Class B Common Stock) held by the Minority Shareholders as set
forth in Schedule 2.2, determined prior to the redemption of the shares of Class
         ------------
B Common Stock pursuant to Schedule 1.15.
                           -------------

    "Permitted Encumbrances" means: (i) liens for real estate taxes not yet due
and payable (all such taxes for the periods prior to Closing being a part of the
Consolidated Liabilities); (ii) the Assumed Obligations (iii) statutory or
common law liens to secure landlords, lessors or renters under leases or rental
agreements confined to the premises rented to the extent that no payment or
performance under any such lease or rental agreement is in

                                      A3
<PAGE>

arrears or is otherwise past due, (iv) deposits or pledges made in connection
with, or to secure payment of, workers' compensation, unemployment insurance or
old age pension programs mandated under applicable laws or other social security
regulations, (v) statutory or common law liens to secure claims for labor,
materials or supplies and other liens, which secure obligations to the extent
the payment thereof is not in arrears or otherwise past due, (vi) non-monetary
easements, rights of way or other reservations or imperfections of title and
encumbrances of record that do not, individually or in the aggregate, materially
impair the continued use and operation of the Assets.

    "Post-Closing Escrow Agreement" means a Post-Closing Escrow Agreement in the
form of C Attached hereto.

    "Programming and Copyrights" means all interests of the Davis Companies as
of the date of this Agreement in all programs and programming materials and
elements of whatever form or nature, whether recorded on tape or any other
substance or intended for live performance, and whether completed or in
production, and all related common-law and statutory copyrights, together with
all such programs, materials, elements and copyrights acquired by the Davis
Companies between the date hereof and the Closing Date.

   "Radio One's Accountant" means Arthur Andersen LLP.

    "Real Property" means all interests of the Davis Companies as of the date of
this Agreement in all land, leaseholds, licenses, rights-of-way and other
interests of every kind and description in and to all of the real property and
buildings and other improvements thereon, including without limitation those
listed and described on Schedule 2.12 attached hereto, and any additions and
                        -------------
improvements thereto between the date of this Agreement and the Closing Date.

    "Registration Rights Agreements" means registration rights agreements in the
form of Exhibit E attached hereto.

    "Station Contracts" means (i) those contracts and agreements used in
connection with the business or operation of the Davis Stations that are listed
and described on Schedule 2.13 attached hereto (ii) the Time Sales Agreements,
                 -------------
and (iii) and those contracts that Radio One shall elect in writing to assume at
Closing.

    "Stock Consideration" means a number of shares of Radio One's common stock
equal to the Adjusted Consideration less the Cash Amount divided by the Closing
Price.

    "Subscriptions" means written subscriptions delivered by the Shareholders to
Radio One in form and substance as set forth on Exhibit D attached hereto.
                                                ---------

    "Subsidiary" means any other corporation, partnership, limited liability
company or other business entity in which a person owns, directly or indirectly,
any equity security or other equity interest and which is controlled, directly
or indirectly, by such person.

    "Tangible Personal Property" means all interests of the Davis Companies as
of the date of this Agreement in all equipment, electrical devices, antennas,
cables, vehicles, furniture, fixtures, towers, office materials and supplies,
hardware, tools, spare parts, and other tangible personal property of every kind
and description, including without limitation those listed and described on
Schedule 2.11 attached hereto, and any additions and improvements thereto
-------------
between the date of this Agreement and the Closing Date.

    "Tax" (including with correlative meaning the terms "Taxes" and "Taxable")

                                     A4
<PAGE>

shall mean (a) all foreign, federal, state, local and other income, gross
receipts, sales, use, entertainment, ticket, ad valorem, value-added,
intangible, unitary, withholding, transfer, franchise, license, payroll,
employment, estimated, excise, environmental, stamp, occupation, premium,
property, prohibited transactions, windfall or excess profits, customs, duties
or other taxes, levies, fees, assessments or charges of any kind whatsoever,
together with any interest and any penalties, additions to tax or additional
amounts with respect thereto, (b) any liability for payment of amounts described
in clause (a) as a result of transferee liability, of being a member of an
affiliated, consolidated, combined or unitary group for any period, or otherwise
through operation of law, and (c) any liability for payment of amounts described
in clause (a) or (b) as a result of any tax sharing, tax indemnity or tax
allocation agreement or any other express or implied agreement to indemnify any
other Person or Taxes.

    "Tax Proceeding" shall mean any audit, examination, claim or other
administrative or judicial proceeding relating to Taxes or Tax Returns.

    "Tax Return" shall mean any return (including any information return),
report, statement, schedule, notice, form, estimate or declaration of
estimated tax relating to or required to be filed with any governmental
authority in connection with the determination, assessment, collective or
payment of any Tax.

    "Tax Authority" shall mean any governmental agency, board, bureau, body,
department or authority of any United States federal, state or local
jurisdiction or any foreign jurisdiction, having jurisdiction with respect to
any Tax.

    "Taxable Period" shall mean any taxable year or any other period that is
treated as a taxable year with respect to which any Tax may be imposed under any
applicable statute, rule or regulation.

    "Time Sales Agreements" means those obligations of the Davis Companies that
exist on the Closing Date for the sale of air time on the Davis Stations for
cash entered in the ordinary course of business, at customary rates for the
periods in question and cancelable on 30 days notice or less without penalty.

    "Total Consideration" means the sum of Twenty Four Million Dollars
($24,000,000).

    "Transaction Fees and Costs" means fees and costs incurred by the Davis
Companies in connection with the transactions contemplated by this Agreement for
outside legal and accounting services and disbursements, recording and filing
fees and expenses.

    "Websites" means all interests of the Davis Companies in any Internet domain
leases and domain names relating to the Davis Stations, the unrestricted right
to the use of HTML content located and publicly accessible from those domain
names, and the "visitor" email data base for those sites.

                                     A5
<PAGE>

Schedules
---------
1.15       Merger Reorganizations
2.2        Capitalization
2.6        Consents
2.8        Taxes
2.9        Liens
2.10       FCC Authorizations
2.11       Tangible Personal Property
2.12       Real Property
2.13       Station Contracts
2.14       Intangible Property
2.15       Employment Matters
2.17       Litigation
2.18       Insurance Policies
5.12       Subordinated Lenders' Waivers

Exhibit
-------
A          Employment Agreement
B          Company's Counsel Opinions
C          Post-Closing Escrow Agreement
D          Subscriptions
E          Registration Rights Agreements

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