Document:

<PAGE>   1

                                                                   EXHIBIT 10.59

                            SETTLEMENT AGREEMENT AND
                        FULL AND FINAL RELEASE OF CLAIMS

                  This Settlement Agreement and Full and Final Release of Claims
("Agreement") is made and entered into between Edward A. Etzel ("Mr. Etzel") and
Verilink Corporation ("Verilink").

         1.       SEVERANCE. Mr. Etzel and Verilink have agreed to end their
employment relationship in a manner such that Mr. Etzel's employment with
Verilink will end effective March 2, 2001 ("Effective Separation Date").

         2.       CONSIDERATION. In consideration of his decision to enter into
this Agreement, Verilink will provide Mr. Etzel with the following:

                  (a)      The continuation of his current salary for a period
of six (6) months from Mr. Etzel's Effective Separation Date. In the
alternative, Verilink may at any time choose to pay Mr. Etzel a lump sum payment
equal to the outstanding balance of his remaining salary. All such payments are
subject to the applicable legal withholdings.

                  (b)      The Company will assume all further monetary
obligations regarding Mr. Etzel's property currently under construction at The
Ledges, and will relieve him of the obligation to repay all amounts currently
outstanding and advanced under the Housing Assistance Loan as described in his
offer letter dated March 27, 2000. In return for this Mr. Etzel agrees to assign
or otherwise convey in total to Verilink his interest in the property. He
further agrees to cooperate with Verilink and its legal representatives in
completing or amending any documentation necessary to effect this conveyance of
the property to Verilink now and in the future

                  (c)      The continuation of the coverage currently in effect
for Mr. Etzel and Mr. Etzel's covered dependents under the medical, dental and
vision plans for a period of six months from his Effective Separation Date.

                  (d)      The right to exercise any vested stock options for a
period of ninety (90) days following Mr. Etzel's Effective Separation Date,
pursuant to Verilink's current Stock Option Plan.

                  (e)      Whether or not Mr Etzel executes this Agreement, the
payment of any accrued, but unused, paid-time-off for the year 2001, as soon as
administratively feasible after his Effective Separation Date or within a
reasonable period after this Agreement becomes binding and effective, whichever
is later. All such payments are subject to the applicable legal withholdings.

         3.       NO OBLIGATION. Mr. Etzel agrees and understands that the
consideration described in Paragraph 2 above is not required by Verilink's
policies and procedures or by any prior agreement between Verilink and Mr.
Etzel.

<PAGE>   2

         4.       FULL AND FINAL RELEASE. In consideration of the payments being
provided to him above, Mr. Etzel, for himself, his attorneys, heirs, executors,
administrators, successors and assigns, fully, finally and forever releases and
discharges Verilink, all subsidiary and/or affiliated companies, as well as its
and their successors, assigns, officers, owners, directors, agents,
representatives, attorneys, and employees (all of whom are referred to
throughout this Agreement as "Verilink"), of and from all claims, demands,
actions, causes of action, suits, damages, losses, and expenses, of any and
every nature whatsoever, as a result of actions or omissions occurring through
the effective date of this Agreement. Specifically included in this waiver and
release are, among other things, any and all claims for severance pay benefits
under the Employee Retirement Income Security Act of 1974 (ERISA), any and all
claims of alleged employment discrimination, either as a result of the
separation of Mr. Etzel's employment, or otherwise, under the Age Discrimination
in Employment Act, the Older Workers' Benefit Protection Act; Title VII of the
Civil Rights Act of 1964, the Americans with Disabilities Act, any other
federal, state or local statute, rule, ordinance, or regulation, as well as any
claims for alleged wrongful discharge, negligent or intentional infliction of
emotional distress, breach of contract, fraud, or any other unlawful behavior,
the existence of which is specifically denied by Verilink. Nothing in this
Agreement and Release, however, is intended to waive Mr. Etzel's entitlement to
vested benefits under any pension or 401(k) plan or other benefit plan provided
by Verilink. Finally, the above release does not waive claims that Mr. Etzel
could make, if available, for unemployment or workers' compensation.

         5.       NO OTHER CLAIMS. Mr. Etzel represents that he has not filed,
nor assigned to others the right to file, nor are there pending, any complaints,
charges or lawsuits against Verilink with any governmental agency or any court,
and that he will not file, nor assign to others the right to file, or make any
further claims against Verilink at any time for actions or omissions covered by
the release in Paragraph 4 above.

         6.       OWNERSHIP AND PROTECTION OF PROPRIETARY INFORMATION.

                  (a)      Confidentiality. All Confidential Information and
Trade Secrets, as defined below, and all physical embodiments thereof received
or developed by Mr. Etzel while employed by Verilink are confidential to and are
and will remain the sole and exclusive property of Verilink. Such Confidential
Information and/or Trade Secrets includes, but is not limited to, those
developed in conjunction with the Boston initiative and with the Boston
University Photonics Center and Beacon Telco project(s). Mr. Etzel will hold
such Confidential Information and Trade Secrets in trust and strictest
confidence, and will not use, reproduce, distribute, disclose or otherwise
disseminate the Confidential Information and Trade Secrets or any physical
embodiments thereof and may in no event take any action causing or fail to take
the action necessary in order to prevent, any Confidential Information and Trade
Secrets disclosed to or developed by Mr. Etzel to lose its character or cease to
qualify as Confidential Information or Trade Secrets.

                  (i)      "Confidential Information" means data and information
relating to the Business of the Company (which does not rise to the status of a
Trade Secret) which is or has

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<PAGE>   3

been disclosed to Mr. Etzel or of which Mr. Etzel became aware as a consequence
of or through his employment relationship with Verilink and which has value to
Verilink and is not generally known to its competitors. Confidential Information
shall not include any data or information that has been voluntarily disclosed to
the public by Verilink (except where such public disclosure has been made by Mr.
Etzel without authorization) or that has been independently developed and
disclosed by others, or that otherwise enters the public domain through lawful
means.

                  (ii)     "Trade Secrets" means information including, but not
limited to, technical or nontechnical data, formulas, patterns, compilations,
programs, devices, methods, techniques, drawings, processes, financial data,
financial plans, product plans or lists of actual or potential customers or
suppliers which (i) derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use, and (ii)
is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.

                  (b)      Return of Company Property. Mr. Etzel will promptly
deliver to Verilink all property belonging to Verilink, including, without
limitation, all Confidential Information and Trade Secrets (and all embodiments
thereof) then in Mr. Etzel's custody, control or possession.

                  (c)      Survival. The covenants of confidentiality set forth
in this Paragraph will apply as of the date Mr. Etzel executes this Agreement to
any Confidential Information and Trade Secrets previously disclosed by Verilink
or developed by Mr. Etzel during the course of his employment with Verilink. The
covenants restricting the use of Confidential Information will continue and be
maintained by Mr. Etzel for a period of two (2) years following the date of
execution of this Agreement. The covenants restricting the use of Trade Secrets
will continue and be maintained by Etzel following execution of this Agreement
for so long as permitted by the Alabama law.

         7.       AGREEMENT NOT TO SOLICIT CUSTOMERS OR EMPLOYEES.

                  (a)      Agreement Not to Solicit Customers or Consultants.
Mr. Etzel agrees that beginning immediately and continuing for a period of one
year from his Effective Separation Date, he will not, either directly or
indirectly, on his own behalf or in the service of or on behalf of others, (1)
solicit, divert, or appropriate or attempt to solicit, divert, or appropriate to
any third party, any individual or entity which was an actual or actively sought
prospective client, customer, or consultant of Verilink (determined at the date
Mr. Etzel was last employed by Verilink and continuing for a period of one year
from his Effective Separation Date ) and with whom Mr. Etzel had material
contact during Mr. Etzel's term of employment with Verilink; or (2) interfere in
any way with Verilink's business relationship with any person or entity.

                  (b)      Agreement Not to Solicit Employees. Mr. Etzel agrees
that beginning immediately, and continuing for a period of one year from his
Effective Separation Date, he will not, either directly or indirectly, on his
own behalf or in the service of or on behalf of others,

                                       3
<PAGE>   4

solicit, divert or hire, or attempt to solicit, divert or hire, any person
employed by Verilink, and whom Mr. Etzel supervised or hired on behalf of
Verilink, whether or not such employee is a full-time employee or a temporary
employee of Verilink and whether or not such employment is pursuant to written
agreement and whether or not such employment is for a determined period or is at
will.

         8.       NON-DISPARAGEMENT. Mr. Etzel agrees that he has not and will
not make statements to clients, customers and suppliers of Verilink or to other
members of the public that are in any way disparaging or negative towards
Verilink, Verilink's products or services, or Verilink's representatives or
employees.

         9.       NON-ADMISSION OF LIABILITY OR WRONGFUL CONDUCT. This Agreement
shall not be construed as an admission by Verilink of any liability or acts of
wrongdoing or discrimination, nor shall it be considered to be evidence of such
liability, wrongdoing, or discrimination.

         10.      COMPLETE TERMINATION OF EMPLOYMENT RELATIONSHIP. Except as set
forth above, Mr. Etzel and Verilink agree as a matter of intent that, except for
vested pension benefits, if any, this Agreement terminates all aspects of the
relationship between them for all time and that Mr. Etzel will not represent
himself as an officer or employee of Verilink after the Effective Separation
Date. Mr. Etzel therefore acknowledges that he does not and will not seek
reinstatement, future employment, or return to active employee status with
Verilink or any subsidiary or affiliated company. Mr. Etzel further acknowledges
that neither Verilink nor any subsidiary or affiliated company shall be under
any obligation whatsoever to consider him for reinstatement, employment,
re-employment, consulting or other similar status at any time. This provision
will not preclude Mr. Etzel from contracting with Verilink on behalf of another
company that has employed him. It also will not preclude Verilink in the future
from considering Mr. Etzel for a position, either upon request or otherwise,
although Verilink cannot be compelled to consider Mr. Etzel for or to provide
Mr. Etzel with any position at any time.

         11.      CONFIDENTIALITY. The nature and terms of this Agreement are
strictly confidential and they have not been and shall not be disclosed by Mr.
Etzel at any time to any person other than his lawyer, his accountant, or his
immediate family without the prior written consent of an officer of Verilink,
except as necessary in any legal proceedings directly related to the provisions
and terms of this Agreement, to prepare and file income tax forms, or pursuant
to court order after reasonable notice to Verilink.

         12.      GOVERNING LAW. This Agreement shall be interpreted under the
laws of the State of Alabama.

         13.      SEVERABILITY. The provisions of this Agreement are severable,
and if any part of this Agreement except Paragraph 4 is found by a court of law
to be unenforceable, the remainder of the Agreement will continue to be valid
and effective. If Paragraph 4 is found by a court of competent jurisdiction to
be unenforceable, the parties agree to seek a determination by

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<PAGE>   5

the court as to the rights of the parties, including whether Mr. Etzel is
entitled under those circumstances and the relevant law to retain the benefits
paid to him under the Agreement.

         14.      SOLE AND ENTIRE AGREEMENT. This Agreement sets forth the
entire agreement between the parties. Any prior agreements between or directly
involving the parties to the Agreement are superseded by the terms of this
Agreement and thus are rendered null and void. However, any noncompete
agreements or prior agreements between the parties related to inventions,
business ideas, and confidentiality of corporate information remain intact.

         15.      NO OTHER PROMISES. Mr. Etzel affirms that the only
consideration for him signing this Agreement is that set forth in Paragraph 2,
that no other promise or agreement of any kind has been made to or with him by
any person or entity to cause him to execute this document, and that he fully
understands the meaning and intent of this Agreement, including, but not limited
to, its final and binding effect.

         16.      REMEDIES. Mr. Etzel agrees that the covenants and agreements
contained in Sections 6 and 7 hereof are of the essence of this Agreement; that
each such covenant is reasonable and necessary to protect and preserve the
interests and properties of Verilink; that Mr. Etzel has access to and knowledge
of Verilink's business and financial plans; that irreparable loss and damage
will be suffered by Verilink should Mr. Etzel breach any such covenant and
agreement; that each such covenant and agreement is separate, distinct and
severable not only from the other of such covenants and agreements but also from
the other and remaining provisions of this Agreement; that the unenforceability
of any such covenant or agreement shall not affect the validity or
enforceability of any other such covenant or agreement or any other provision or
provisions of this Agreement; and that, in addition to other remedies available
to it, Verilink shall be entitled to specific performance of this Agreement and
to both temporary and permanent injunctions to prevent a breach or contemplated
breach by Mr. Etzel of any of the covenants or agreements.

         17.      ADVICE OF COUNSEL. Mr. Etzel acknowledges that he has been
advised by Verilink to consult with an attorney in regard to this matter. He
further acknowledges that he has been given twenty-one (21) days from the time
that he receives this Agreement to consider whether to sign it. If Mr. Etzel has
signed this Agreement before the end of this twenty-one (21) day period, it is
because he freely chose to do so after carefully considering its terms. Finally,
Mr. Etzel shall have seven (7) days from the date he signs this Agreement to
change his mind and revoke the Agreement. If Mr. Etzel does not revoke this
Agreement within seven days of his signing, this Agreement will become final and
binding on the day following such seven-day period.

         18.      SIGNATURE. The Agreement may be signed in counterpart and/or
through the use of facsimile signatures without effecting its binding nature or
effectiveness.

                                       5
<PAGE>   6

         19.      LEGALLY BINDING AGREEMENT. Mr. Etzel understands and
acknowledges that (a) that this is a legally binding release; (b) that by
signing this Agreement, he is hereafter barred from instituting claims against
Verilink in the manner and to the extent set forth in Paragraph 4 and Paragraph
5 above; and (c) that this Agreement is final and binding.

                 PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES
                 A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

         Date:      03/01/01                         /s/ Edward A. Etzel
              --------------------            ----------------------------------
                                                       Edward A. Etzel

         FOR: VERILINK CORPORATION

         Date:      03/01/01                  By:     /s/ Betsy D. Mosgrove
              --------------------            ----------------------------------
                                              Full Name
                                                      VP, HR
                                              ----------------------------------
                                              Title

                                       6<PAGE>   1
                                                                    EXHIBIT 10.1

                                 FIRST AMENDMENT
                                       TO
                                CREDIT AGREEMENT

         This First Amendment to Credit Agreement (including Exhibit A and the
Consent of Subsidiary Guarantors attached hereto, this "Amendment") is dated as
of March 5, 2001 and entered into by and among Spanish Broadcasting System,
Inc., a Delaware corporation (the "Borrower"), the Lenders party to the Credit
Agreement described below and Lehman Commercial Paper Inc. as Administrative
Agent (the "Administrative Agent").

                                    RECITALS

         A.       The Borrower, the Lenders and the Administrative Agent have
entered into a Credit Agreement dated as of July 6, 2000 (the "Credit
Agreement"). Capitalized terms used in this Amendment without definition shall
have the meanings given such terms in the Credit Agreement.

         B.       The Borrower has requested that the Lenders agree, subject to
the conditions and upon the terms set forth in this Amendment, to amend the
Credit Agreement as herein set forth.

         C.       The Lenders are willing to agree to amend the Credit Agreement
subject to the conditions and on the terms set forth herein.

         NOW THEREFORE, in consideration of the premises and the mutual
agreements set forth herein, the Borrower, the Lenders and the Administrative
Agent hereby agree as follows:

         1.       AMENDMENTS TO CREDIT AGREEMENT. Subject to the conditions and
upon the terms set forth in this Amendment and in reliance on the
representations and warranties of the Borrower set forth in this Amendment, the
Credit Agreement is hereby amended as follows:

         1.1      Annex A: Pricing Grid For Revolving Credit Loans, Swing Loans
and Term Loans. Annex A of the Credit Agreement is deleted and Annex A(am),
attached as Exhibit A to this Amendment, is inserted in its place.

         1.2      Section 1.1: Defined Terms. Section 1.1 of the Credit
Agreement is amended:

         (a)      by inserting immediately after "provided, that" in the
definition of "Applicable Margin":

                  (a) effective on the First Amendment Effective Date and at all
                  times thereafter until the Grid Effective Date, the Applicable
                  Margin for Base Rate Loans shall be 2.00% and

                                      -1-

<PAGE>   2

                  the Applicable Margin for Eurodollar Loans shall be 3.00% and
                  (b) effective

         (b)      by deleting in its entirety the text of the definition of
"Grid Effective Date" and replacing it with:

                  "Grid Effective Date": the date that is the later of (a) the
                  six-month anniversary of the Syndication Date and (b) the date
                  of delivery to the Administrative Agent of the Borrower's
                  financial statements for the first two fiscal quarters ending
                  after the Syndication Date.

         (c)      by deleting the term "Annex A" in the definition of "Pricing
Grid" and replacing it with "Annex A(am)".

         (d)      by deleting the date "June 30, 2006" in the definition of
"Scheduled Revolving Credit Termination Date" and replacing it with "December
31, 2006".

         (e)      by deleting the last sentence in the definition of "Term Loan
Commitment" and replacing it with:

                  The original aggregate amount of the Term Loan Commitments was
                  $125,000,000, in respect of which (a) $65,000,000 in principal
                  amount of Term Loans were made to the Borrower during the Term
                  Loan Commitment Period and are outstanding as of the date of
                  the First Amendment, (b) all obligations to make any
                  additional Term Loans expired on the last day of the Term Loan
                  Commitment Period, and (c) accordingly, as of the date of the
                  First Amendment, the aggregate amount of the Term Loan
                  Commitments is $65,000,000, consisting of $65,000,000 in
                  principal amount of Term Loans funded, outstanding and
                  repayable on the terms set forth in this Agreement and no
                  Lender is obligated to make any additional Term Loans.

         (f)      by adding the following new definitions in proper alphabetical
order:

                  "First Amendment": the First Amendment to this Credit
                  Agreement dated as of March 5, 2001.

                  "First Amendment Effective Date": the earlier of (a) March 31,
                  2001 and (b) the Syndication Date.

                  "Syndication Date": the date on which the first assignments
                  are made in the syndication of the credit facilities
                  established hereby.

                                      -2-

<PAGE>   3

         1.3      Section 2.3: Repayment of Term Loans. Section 2.3 of the
Credit Agreement is amended by deleting the text thereof in its entirety and
replacing it with:

                  Repayment of Term Loans. The Borrower shall pay the principal
                  amount of the Term Loans in twenty consecutive quarterly
                  installments commencing on March 31, 2002 and continuing on
                  the last day of each June, September, December and March of
                  each year thereafter through December 31, 2006, and the amount
                  of the quarterly installment due on each such payment date
                  shall be determined by applying the payment percentage set
                  forth next to such payment date below to the amount of the
                  Term Loans outstanding on the last day of the Term Loan
                  Commitment Period:

<TABLE>
<CAPTION>
                           Payment Date              Payment Percentage
                           ------------              ------------------
                           <S>                       <C>
                           March 31, 2002                 1.25%
                           June 30, 2002                  1.25%
                           September 30, 2002             1.25%
                           December 31, 2002              1.25%
                           March 31, 2003                 3.75%
                           June 30, 2003                  3.75%
                           September 30, 2003             3.75%
                           December 31, 2003              3.75%
                           March 31, 2004                 5.00%
                           June 30, 2004                  5.00%
                           September 30, 2004             5.00%
                           December 31, 2004              5.00%
                           March 31, 2005                 6.25%
                           June 30, 2005                  6.25%
                           September 30, 2005             6.25%
                           December 31, 2005              6.25%
                           March 31, 2006                 8.75%
                           June 30, 2006                  8.75%
                           September 30, 2006             8.75%
                           December 31, 2006              8.75%
</TABLE>

                           Notwithstanding the foregoing, the aggregate
                           outstanding principal balance of the Term Loans shall
                           be due and payable in full in immediately available
                           funds on December 31, 2006, if not sooner paid in
                           full.

         1.4      Section 7.1(c): Consolidated Leverage Ratio. The entry "FQ2
and FQ3 in 2001" in the first column in Section 7.1(c) of the Credit Agreement
and the corresponding entry "6.50" in the second column of that Section are
deleted and replaced by the following:

                                      -3-

<PAGE>   4
                            FQ2 in 2001                    6.75
                            FQ3 in 2001                    6.50

         2.       REPRESENTATIONS AND WARRANTIES OF THE BORROWER. In order to
induce the Lenders and the Administrative Agent to enter into this Amendment,
the Borrower represents and warrants to each Lender and the Administrative Agent
that the following statements are true, correct and complete:

         2.1      Existence, Good Standing, Power and Authority. The Borrower
and each Subsidiary Guarantor is duly organized and validly existing and in good
standing under the laws of the State in which it was organized and has all
corporate or other organizational power and authority to enter into this
Amendment.

         2.2      Authorization. The execution and delivery of this Amendment
and the performance of the obligations of the Borrower and each Subsidiary
Guarantor under or in respect of this Amendment and the Credit Agreement as
amended hereby have been duly authorized by all necessary corporate or other
organizational action on the part of the Borrower and the Subsidiary Guarantors.

         2.3      No Conflict or Violation or Required Consent or Approval. The
execution and delivery of this Amendment by the Borrower and the Subsidiary
Guarantors and the performance of the obligations under or in respect of this
Amendment and the Credit Agreement as amended hereby do not and will not
conflict with or violate (a) any provision of the articles or certificate of
incorporation or bylaws or other governing documents of the Borrower or any
Subsidiary, (b) any law or governmental rule or regulation applicable to or
binding on the Borrower or any Subsidiary, (c) any order, judgment or decree of
any court or other governmental agency binding on the Borrower or any
Subsidiary, or (d) any indenture, agreement or instrument to which the Borrower
or any Subsidiary is a party or by which the Borrower or any Subsidiary, or any
property of any of them, is bound, and do not and will not require any consent
or approval of any Person.

         2.4      Execution, Delivery and Enforceability. This Amendment has
been duly executed and delivered by the Borrower and each Subsidiary Guarantor
and is the legal, valid and binding obligations of the Borrower and the
Subsidiary Guarantors, enforceable in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally or by general equitable principles.

         2.5      No Default. No event has occurred and is continuing or will
result from the execution and delivery of this Amendment that constitutes or
would constitute a Default.

         2.6      Representations and Warranties. Each of the representations
and warranties of the Borrower or any Subsidiary Guarantor set forth in any Loan
Document is true and correct in all material

                                      -4-

<PAGE>   5

respects on the date hereof and will be true and correct in all material
respects on the date this Amendment becomes effective, except (in each case) to
the extent such representations and warranties speak expressly to an earlier
date.

         2.7      Subsidiary Guarantors. Each Person that is, as of the date of
this Amendment, a Subsidiary and a Subsidiary Guarantor has duly executed and
delivered a counterpart of the Guarantee and Collateral Agreement.

         3.       EFFECTIVENESS OF THIS AMENDMENT. This Amendment shall be
effective when this Amendment has been duly executed and delivered by the
Borrower, the Administrative Agent and the Lenders and the Consent of Subsidiary
Guarantors included herein has been duly executed and delivered by each of the
Subsidiary Guarantors. Delivery of a telecopy signature page signed on behalf of
a Lender or the Administrative Agent shall be sufficient evidence of such
execution and delivery by it.

         4.       EFFECT OF AMENDMENT. From and after the date on which this
Amendment becomes effective, all references in the Loan Documents to the Credit
Agreement shall mean the Credit Agreement as amended hereby. As expressly
amended hereby, the Credit Agreement and the other Loan Documents, including the
Liens granted thereunder, shall remain in full force and effect and are hereby
ratified and confirmed. This Amendment is a Loan Document.

         5.       APPLICABLE LAW AND MISCELLANEOUS PROVISIONS. This Amendment
shall be governed by, and construed and interpreted in accordance with, the laws
of the State of New York. The provisions of Article X of the Credit Agreement
shall apply with like effect to this Amendment.

                                      -5-

<PAGE>   6

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by a duly authorized officer as of the date first above written.

                                      SPANISH BROADCASTING SYSTEM, INC.

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

                                      LEHMAN COMMERCIAL PAPER INC.,
                                       as Lender and as Administrative Agent

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

<PAGE>   7

                                                                       EXHIBIT A

                                                                     Annex A(am)

                    PRICING GRID FOR REVOLVING CREDIT LOANS,
                         SWING LINE LOANS AND TERM LOANS

Commencing on the Grid Effective Date, the Applicable Margin shall be determined
on a quarterly basis based on the Consolidated Leverage Ratio as of the last day
of the most recent fiscal quarter and for the period of four consecutive fiscal
quarters then ended, as set forth below:

<TABLE>
<CAPTION>
       -------------------------------------------------------------------------
        Consolidated Leverage     Applicable Margin       Applicable Margin for
               Ratio             for Eurodollar Loans        Base Rate Loans
       -------------------------------------------------------------------------
       <S>                       <C>                      <C>
       >6:1                              3.00%                   2.00%
       -
       -------------------------------------------------------------------------
       >5:1 and <6:1                     2.75%                   1.75%
       -
       -------------------------------------------------------------------------
       >4:1 and <5:1                     2.50%                   1.50%
       -
       -------------------------------------------------------------------------
       <4:1                              2.25%                   1.25%
       -------------------------------------------------------------------------
</TABLE>

provided, that the Applicable Margin will be the highest rate set forth above
(3.00% for Eurodollar Rate Loans and 2.00% for Base Rate Loans) whenever any
Event of Default is continuing. Changes in the Applicable Margin resulting from
changes in the Consolidated Leverage Ratio shall become effective on the date on
which financial statements are delivered to the Lenders pursuant to Section 6.1
(but in any event not later than the 45th day after the end of each of the first
three quarterly periods of each fiscal year or the 90th day after the end of
each fiscal year, as the case may be) and shall remain in effect until the next
change to be effected pursuant to this paragraph. If any financial statements
referred to above are not delivered within the time periods specified above,
then, until such financial statements are delivered, the Consolidated Leverage
Ratio as at the end of the fiscal period that would have been covered thereby
shall for the purposes of this definition be deemed to be greater than 6:1.

<PAGE>   8

                        CONSENT OF SUBSIDIARY GUARANTORS

Each of the undersigned hereby (a) represents and warrants to the Administrative
Agent and the Lenders that it is a Subsidiary and a Subsidiary Guarantor and has
duly authorized, executed and delivered a counterpart of, or assumption
agreement in respect of, the Guarantee and Collateral Agreement, (b) consents to
the foregoing Amendment, (c) acknowledges that, notwithstanding the execution
and delivery of the foregoing Amendment, its obligations under the Guarantee and
Collateral Agreement and each other Loan Document executed by it are not
impaired or affected and all guaranties given and security interests and liens
granted thereunder remain and shall continue in full force and effect, and (d)
confirms and ratifies its obligations under the Guarantee and Collateral
Agreement and each other Loan Document executed by it.

                           [intentionally left blank]

<PAGE>   9

         IN WITNESS WHEREOF, each of the undersigned has executed and delivered
this Consent of Subsidiary Guarantors as of the 5th day of March, 2001.

SPANISH BROADCASTING SYSTEM FINANCE CORPORATION,
    a Delaware corporation
SPANISH BROADCASTING SYSTEM OF GREATER MIAMI, INC.
SPANISH BROADCASTING SYSTEM OF ILLINOIS, INC.
SPANISH BROADCASTING SYSTEM, INC.,
    a New Jersey corporation
SPANISH BROADCASTING SYSTEM OF SAN ANTONIO, INC.
ALARCON HOLDINGS, INC.
SPANISH BROADCASTING SYSTEM OF CALIFORNIA, INC.
SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC.,
    a Delaware corporation
SPANISH BROADCASTING SYSTEM OF FLORIDA, INC.
SBS OF GREATER NEW YORK, INC.
SBS FUNDING, INC.
SPANISH BROADCASTING SYSTEM OF PUERTO RICO, INC.,
    a Puerto Rico corporation
SPANISH BROADCASTING SYSTEM NETWORK, INC.
SBS PROMOTIONS, INC.
WRMA LICENSING, INC.
WXDJ LICENSING, INC.
WLEY LICENSING, INC.
WSKQ LICENSING, INC.
KLEY LICENSING, INC.
WCMQ LICENSING, INC.
KLAX LICENSING, INC.
WPAT LICENSING, INC.
WCMA LICENSING, INC.
WEGM LICENSING, INC.
WMEG LICENSING, INC.
KSAH LICENSING, INC.
KNJR LICENSING, INC.
KMJR LICENSING, INC.
KXJO LICENSING, INC.
KTCY LICENSING, INC.
SBS OF SAN FRANCISCO, INC.
SPANISH BROADCASTING SYSTEM SOUTHWEST, INC.

By:
   --------------------------------------
   Name:
   an authorized officer of each of the foregoing Subsidiary Guarantors

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